Solution
Task- Questions
- Divisional and Matrix Structure
Divisional Organisation Structure
A divisional organisation structure involves segmenting employees on the basis of products, services or markets contrary to using job functions (CIPD, 2023). With multiple divisions in same organisation, they work separately to achieve a common good of delivering products and services to customer segments. An example of organisation using this structure is Hilton Hotel Group in UK. This is an organisation I am familiar with where its divisional structure is illustrated in the following;
Figure 1: Hilton Divisional Organisation Structure
Source: Summarised from Hilton (2024)
For advantages, they include;
Effective specialisation– As illustrated in figure 1, the professionals work in global development, communication and commercial areas. This imply they are specialist in these areas hence efficient operations (CIPD, 2024). This contribute to Hilton being a leader in global hospitality industry.
Accountability and transparency– The different divisions in figure 1 report to president and chief executive officer. As such, it becomes easy tracking the results of each department with their results (Yanamala, 2023). Hence, any mistake done by any division is not carried by another division. This means they are transparent and held into account easily.
For disadvantages, they include;
Costly to implement– Considering the structure is made up of different divisions which work independently, they are facilitated by the organisation resources. This is cost intensive as there is often roles duplication. For instance, in figure 1, all the divisions have a receptionist department which is costly to manage.
Silo mentality– Since divisional structure have employees working independently, they do not share information or knowledge. This contributes to their low morale, ineffective workflow and negative experiences (CIPD, 2024a).
Reason for Using the Structure– In Hilton Organisation, using this structure means employees work in departments where they are specialised. Within these divisions, employees put optimum effort in delivering services to their different customer segments. With the organisation being multi-national, it is possible to coordinate the operations of similar divisions globally. According to CIPD (2024a), this assists in increasing coordination and efficiency in their operations.
Matrix Organisation Structure
This is identified as a type of organisation structure having teams reporting to many leaders (Gomo et al., 2021). The outcome of this is the organisations being more innovative in their products and services development. An example of organisation using this structure is Park Inn (my current employer). The organisation structure is as illustrated in the following;
Figure 2: Park Inn Organisation Structure
Source: Park Inn by Radisson (2024)
For advantages, they include;
High collaboration– In Park Inn organisation, with different departments in the organisation, the employees work in collaboration (Chowdhury et al., 2022). There is maximum utilisation of the organisation internal resources with the expertise being readily available with project teams recruited from external teams. This also contribute to increased efficiency owing to resources sharing in all the department in Park Inn.
Improved decision making– As aforementioned, a matrix structure has the employees reporting to multiple managers. Hence, there is an appropriate opportunity offered for employees to offer their insights in decision making.
For disadvantages, they include;
Power Struggles– In Park Inn organisation structure, it is characterised by existence of project and functional managers. Often, they are found conflicting in regard to their functions and scope of operations.
Slow decision making– The need for continuous consultation of the two different levels in a matrix structure make the entire process to be slow. Prior making critical decisions, all levels must be consulted which is time intensive.
Underpinning Reason– Due to the nature of Park Inn operations in the hotel industry, with more than 100,000 employees globally, managing them effectively is an enormous task. This is with different specialisation in place in the organisation requiring different specialists. All these specialists work in collaboration to achieve Park Inn vision which is increased tourists attraction internationally.
- Organisation strategy in organisations
Adopting the definition in CIPD (2024b), an organisation strategy is “set of actions and plans set for assisting an organisation in achieving their long-term objectives and goals”. It entails decision making on resources use, direction to be followed by an organisation and leveraging on competitive advantage for being sustainable in their business environment.
Identified Organisation Strategy– Park Inn organisation strategy entail initiating a highly vibrant and customer-centric hospitality services delivery aligned with needs of modern tourists. This is while embracing technology to enhance strategic positioning and market-based growth.
Another Park Inn strategy is to deliver best experiences which are stress-free, best culinary experience and eating space. This is while redesigning their entire space to be more modernised and an individualised provision of services for an optimum guest’s satisfaction.
Direct Link of Identified Strategy
For identified strategy, they are directly linked to Park Inn goals. This includes sustainability of their practices, leverage on competitive advantage and gaining an increased value. For example, the vibrant and customer-centric experiences would mean attracting international tourists both local and international representing most people in the tourism sector. Similarly, the stress-free experience and best culinary experience is part of the organisation role in ensuring UK attracts 50 million international visitors by 2030 (GOV.UK, 2024).
Meeting Customer Needs
The organisation strategy of delivering vibrant and a highly friendly hospitality experiences custom-made to the international travellers ensures they engage best clients (Sanasam et al., 2022). Comparing Park Inn with their competitors, they would be able to adequately support and offer best services to their customers.
According to Avado CIPD (2024), the organisation strategic embrace of technology and market-based growth contribute to provision of customised products/services. This is while establishing a long-term customer loyalty for their services.
External Context Analysis
Economy changes-The economic landscape directly impact achievement of the identified organisation strategy (CIPD, 2024c). With the current global economic downturn, the available resources for the implementation of the strategy are limited. As such, the organisation would be required to restructure budget for other operations re-directing it to implementation of the organisation strategy. The funds would be re-directed from opening new subsidiaries and developing new product portfolio.
A different external factor is technological advancement. This impact how the first strategy is successfully implemented. The rate in which technologies become obsolete means that more financial resources would be budgeted in replacement of technologies used to ensure customer-centric services are advanced. This would also ensure they maintain their competitiveness and target more markets.
- Impact of interest rates, inflation and another external factor
Interest Rates
This is defined in Rosa (2024) as the overall costs incurred to borrow money represented by principal loan cost borrowers are required to pay to their lender on top of their loans. In UK for instance, the interest rates are noted to be almost 0.1% beginning in December 2021 and currently at 4.5% (Bank of England, 2024). Today, the borrowing costs is at 3.7% aligned with the country strategy of monetary easing for supporting an increased economic development while maintaining inflation costs at 2% target.
Priority– With the interest rates being under a continuous change, the organisation is supposed to develop financial target. As identified in Rosa (2024), this is by initiating foresight, adaptable and data guided decisions to ensure they capitalise on existing opportunities. According to Bank of England (2024), contrary to letting interest rates be controlling an entity, set of financial targets imply proactively allowing attainment of financial stability and development.
Inflation rates
Adopting the definition of CIPD (2023a), the inflation rate is the costs increase for basket of specific goods and services in a period of one year. In UK for instance, ONS (2025) report identify the costs as having increased with 2.5% in 12 months to December 2024. This is a decline from 2.6% in November and lower value compared to 11.2% recorded as of October 2022. Further, in hotel industry where Park Inn operates, the inflation rates have increased with 3.4% as at December 2024. This is from the previous 4.0% in November and low yearly rates from July 2021.
Priority– Considering the increasing inflation rates, Park Inn organisation need to prioritise on enhancing efficiency in investment in restructuring of their operations. Restructuring assists in ensuring that the non-critical job roles are merged hence saving on finances. Also, through adjustment of their prices to reflect the increasing costs, they would maintain their current customers and not record significant losses (Ledro et al., 2022). Such monetary policies would mean they attract young travellers, valued customers and leverage on competitive advantage.
Government Policies and Legal Regulations
In an economy here an organisation operate, government legislations are meant to offer protection of players from bad business tendencies. In line with Yusefi et al. (2022), this enhances employees protection, clients and broad organisation practice. For UK, a recent policy of Brexit which lead to elimination of services directive and recognising qualifications for supporting services trading. The legislation is characterised with varying conditions and restrictions in various areas or business operations in service sector.
Priority– Considering the identified factor, the priority for an organisation such as Park Inn would be reorganising their practices to align with the legislations. The organisation hierarchical operations would be altered to become permanent with change management appropriately pursued to succeed in the changing business environment (Kren & Lawless, 2024). Again, is the whole paragraph a reference? (No, it is only the second sentence where the source has been referred to. Not the whole paragraph)
- AI use in my organisation and impacts to work
AI Predictive Analytics (Talent Acquisition)
For this AI type, it can be used in Park Inn to streamline resourcing process as part of the employment lifecycle (Johnson et al., 2021). The AI analyse data of the potential candidates to note top-ranked talents. The success in embrace of the technology is noticeable in capacity to leverage on past experience, Curriculum Vitae and psychological evaluation to identify their potential to occupy different functions.
Pros– The technology is employed in reducing the amount of time spent to shortlist likely candidates, managing biasness and improving chance to resource employees with high-level qualification.
Cons– Due to lack of relevant expertise to use predictive analytics, it could overlook potential candidates who possess soft-skills or the non-typical candidates. These fail to fit existing patterns for job opportunity. It is similarly cost intensive implementing talent acquisition by use of the AI technology (Arora et al., 2021).is this all a reference or just the last sentence? No, it is only the second sentence where the source has been referred to. Not the whole paragraph- cost intensive to implement talent acquisition
Impact in Workplace– For Park Inn organisation, predictive analytics are relevant in guiding recruitment and selection of candidates best qualified. This reduce the likelihood to recruit employees who are not fit for the job (Johnson et al., 2021). Owing to the high demand of experience for employees working in hotel industry (Park Inn), the AI is appropriate to source highly experienced and skilled matched with available job roles.
AI Empowered Virtual Training Assistants (Learning and Development)
In Park Inn organisation, this tool is relevant for harnessing successful L&D process. AI empowered virtual training assistants facilitates provision of on-demand support for learning, access of various materials, simulation strategy and timely feedback. The success of AI empowered virtual assistants is to use Natural Language Processing (NLP) to ensure their users identify concerns while recommending best learning process.
Pros– As part of L&D, based on employees learning needs, qualified employees are recommended on best strategy. Also, based on expectation, accommodation of all employees is assured therefore flexible (Johnson et al., 2021). Is all of this referenced? No, it is only the second sentence where the source has been referred to. Not the whole paragraph-
Cons– Highly relying on Virtual Training Assistants could undermine essential interactive and team-based L&D. Similarly, mimicking humans in learning is challenging. In L&D, involving an observer assists in deciding who to imitate, what to imitate, how to imitate and success of imitation which is impossible by use of the AI. Why?
Impact in Workplace– For Park Inn organisation, the technology is relevant to redesign current L&D strategy. Also, the process flexible nature would be enhanced with more employees involved in L&D virtually (despite where they are located).
2.1 Charles Handy’s Model and David Rock’s SCARF Theory
Charles Handy Model
The theory is used in identifying organisation culture in realms of Person, Task, Role and Power (Morais et al., 2021).
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