(Solution) New Oakwood International 5C001 Organisational performance and culture in practice

Solution

Briefing paper Questions

(AC1.1) Evaluate the advantages and disadvantages of different types of organisation structures, including the reasons underpinning them. Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.   Word count: Approximately 500 words
Divisional organisation structure
For this structure, it is based on identifying products and services as opposed to using person specification/description (Gaspary et al., 2020) as shown below; Figure 1: Divisional structure Source: AIHR (2024) An organisation which use this in Saudi Arabia (KSA) is  the Saudi Central Bank (SAMA) which is the organisation I am currently working for. 
With the governor at the top of the structure, there are the monetary affairs manager, supervision and technology and executive affairs (SAMA, 2024). The advantages include;
Increased flexibility–  Having different divisions in same organisation, provision of products and services is made easy to different clients. Innovativeness– With the different divisions working independently, they have a potential of increased innovation and technology embrace. This guarantee an increased quality of operations. The disadvantages are;
Less cross-functional team-work– The existence of many departments means they work differently hence limited collaboration. This impact effectiveness in roles implementation.
Resources duplication– Considering SAMA organisation, different divisions have similar facilitative roles such as receptionists, security, accountants leading to resources being duplicated hence very costly. The underpinning reason for the application of the structure entail effectiveness in manging a large organisation. The rationale of this is that the structure ensure different departments execute the products and services provision.
Matrix Structure
In this type of structure, the different departments in an organisation have their independent leaders but reporting to the senior CEO at the top level (Saiti & Stefou, 2020). An example of the structure is found in HSBC organisation which has their operations in Saudi Arabia as illustrated in the following; Figure 2: Matrix Organisation Structure Source: HSBC (2024)
Considering the relevance of the application of the structure, the different advantages are;
Immense team-work/collaboration– Through an active use of the matrix organisation structure,  various people come together as they possess different skills and capabilities. The outcome of this is increasing the overall teamwork process.
Efficiency in using resources– Taking into account of an organisation such as HSBC using the structure, through the use of the matrix organisation structure, it contributes to attraction of many qualified employees (HSBC, 2024). By being efficient in resource usage, it contributes to reduced resources wastages hence optimum use of these resources.
Considering disadvantages, they are;
Job descriptions/person specifications unclear– The different departments in a matrix structure reporting to the main leader lead to confused interpretation of the job roles.  This directly impact negatively how the employees execute their functions for maximum organisation operations (CIPD, 2024g). The underpinning reason for use of the matrix structure is to guarantee a detailed allocation of job functions in the different departments and employees. At the same time, they ensure that different employees are working in collaboration informed by how they are qualified.
(AC1.2) Analyse connections between organisational strategy, products, services and customers. Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.   Word count: Approximately 400 words
Organisation strategy is defined as an appropriately defined plan and approach to achieve their overarching goals and objectives (CIPD, 2024h) (Szydło & Grześ-Bukłaho, 2020). It include the mission, vision, core values and strategic practices undertaken for staying ahead in the market. For example, Saudi Central Bank (SAMA) organisation strategy is enhancing an efficient digital payment infrastructure, reduced application of cash, digitised access for financial products and improving accessibility for the businesses. SAMA is my current organisation. My function/roles in the organisation is a L&D specialist which is an area of people practice function.
Link with organisation strategic goals and objectives
In SAMA organisation, one of their organisation strategy include working on a research-based approach to understand their environment features and how this impact financial market positively and negatively. According to Chi et al. (2020), the outcome of this research evidence implication of factors of inflation, competitiveness, market-demand supply chain hence potential for attraction of different customers. This means that economic landscape would impact the success of these strategies. According to CIPD (2024) economic landscape has a direct influence on organisation recruiting, retaining and developing people.                                                                                                                                                                                                                                                                                                                            Another strategy pursued by SAMA entail aligning the varying expectations and needs of their clients. This is since in KSA, increased financial resources is core for achieving set Vision 2030 goals. This goal is pursued by SAMA hence aligned with the goals and objectives of KSA. Implementation strategies impact the success of this strategy as the priority can be pursuing value proposition for engaging loyal employees in the organisation. Also, SAMA prioritise on improving their value proposition for acquisition of loyal stakeholders in workplace. This is while at the same time being appropriately positioned to pursue L&D strategies which is of service to different countries needs and broad business sector.
Strategic goals and products/services
Taking into account of the economic environment and necessity for implementing different strategies, aligning products/services is critical. According to Ashok et al. (2021), in line with Porter’s 5 Forces Model, there is a possibility of identifying the level in which organisation strategy influence factors such as buyer and suppliers power, industrial rivalry and competitiveness. In SAMA case, the organisation strategy include enhancing an increase in readily available capital for small and large business as part of KSA Vision 2030. Hence, the offered products and services are supposed to be customer-centric in order to assure them high-level customers satisfaction. The bank currently operate different portfolios enhancing scope of their operations. Technology impact implementation of this strategy by ensuring existence of customer-centric for ensuring increased customer satisfaction (CIPD, 2024a). Further, attaining customer satisfaction is core area of SAMA organisation strategy. This is achieved through identifying the customers needs/demands and providing custom-made products and services. This is while ensuring they effectively manage all the costs of operations in financial industry. Economic landscape has a direct impact on the success of this strategy. The rationale of this is that in order to differentiate themselves from the other players in financial sector, SAMA organisation strategy entail offering their customers security and also sustainable operations. Depending on the identified needs, SAMA is able to offer customised products and services. 
(AC1.3) Analyse external factors and trends impacting organisations to identify current organisational priorities. Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.   Word count: Approximately 450 words
In line with PESTLE tool, there is a possibility to evaluate a set of factors impacting organisation strategy (Casañ et al., 2021). The relevance of the tool is noting on these factors and identifying how to prioritise their consideration.  In the analysis, SAMA which is my employer organisation (I work for the organisation) has been used in providing relevant examples in the factors analysis.  
Interest Rates In an economy setting, this factor identify what is gained after saving or paid to facilitate credit/loans (Bisht, 2023). Since the banking industry controls different countries economies, the interest rate mirrors the performance of the entire economy. For example,  when the economy is not performing well, the interest rates of the loans tend to increase. Conversely, good economic outlook means that the baking sector issue more interests to their customers. In the case of KSA, SAMA issues an average of 6.5% in terms of interest rates monthly for all their customers.   This is also paid by their customers taking loans offered by the organisation. As evidenced in Bauer and Rudebusch (2020), the implication of the interest rates is increasing/reducing the profitability of organisations in a market and readiness in access of financial resources. The interest rates are evaluated within a specified amount of time hence determining implication on purchase power.
Priority– For SAMA, having an increased interest rates, they can focus on expansion. By expanding their operations, KSA government increased support would be assured in policies making and monetary facilitation. The outcome of this is SAMA capitalising on competitive advantage and dominating the financial sector. The disadvantage of this priority is potential of the interest rates causing unfavourable financial environment. This is by those taking credit being charged more than those saving.
Inflation
In an economy, the costs of products and services are varying owing to broad economic landscape. According to Casañ et al. (2021), for SAMA, this has a direct implication on their operations as regulators of the financial market in KSA. The current rate of inflation in KSA is at 2% which has increased over time (Bauer & Rudebusch, 2020). The implication of this include development of policies which include Saudisation and recruitment of nationals in various initiative.
Priority– Considering SAMA organisation context, priority is implementation of a contraction policy as a significant area of their practice. By embracing this in their operations, the KSA administration amount of spend and monetary policies under their regulations would be appropriately managed. This is with costs incurred reduced to upto 40% of entire investments. The disadvantage of this would include existence of policies which are not favourable hence impacting small and medium enterprises in KSA.
Social In an economy setting, this is largely evidenced by readily accessed labour to execute organisation goals/objectives. In line with Bauer and Rudebusch (2020), a recent social factor is manifested by increase in Generation Z and Millennial who are increasingly taking job roles and leading entities. This is while involving them in management of international business practices owing to potential of skills mismatch. In SAMA sector of practice, the Millennials and Gen Zs and also Millennials have increased to comprise upto 60% of the entire workforce. The impact of this is SAMA changing their retention strategies to include total rewards. Most of the Generation Z and Millennials prefer career development over financial rewards (CIPD, 2020). This is with recruitment strategies required in SAMA to be majorly based on embrace of technology.
Priority– The priority is restructuring of resourcing process. Currently, with traditional-based recruitment process being used, modernised technology including technology can be integrated in the process of resourcing. This would lead to an increased attraction of Generation Z and Millennials. Owing to the identified trend, the priority need to restructure their resourcing as a core area of resourcing. This is intended for ensuring all generations are involved as part of workforce. The disadvantages of this include being cost-intensive and non-guarantee of performance increase. 
(AC1.4) Assess the scale of technology within organisations and how it impacts work. Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.   Word count: Approximately 350 words

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