Solution
- Divisional and matrix structure
Divisional Organisation Structure
In this structure, it is anchored on products and services being offered by an organisation as opposed to using job description or person specification (Gaspary et al., 2020). An example of the structure is illustrated below;
Figure 1: Illustration of divisional structure
In Saudi Arabia (KSA), MNGHA adopt the divisional organisation structure. The divisions include medical, pharmacy, HR and IT.
The strength/pros of the structure include;
Flexibility- Having many divisions in existence, flexibility in delivering services and accessing clients groups is attained.
Innovativeness– There is freedom of various departments in MNGHA to work independently hence ability to innovate and succeed in their operations.
The weaknesses/cons are;
Lower cross-function and team-oriented practice– By use of divisional structure, employees are isolated in their divisions, hence affecting their collaboration. The IT division could fail to collaborate with HR hence limiting success of ERP systems.
Duplication of roles– For MNGHA, every division has their independent functions which could be occurring in all divisions. The results of this is similar roles which would have been handle together being duplicated.
For divisional structure, the underpinning reason for its application is managing a large organisation which has enormous operations. With MNGHA working in veterans to guarantee their health outcomes, they must work with multiple divisions.
Matrix Organisation Structure
This is an organisation structure where there is one leader at the entire structure heading all departments (Al-Swidi et al., 2021). This is shown below (illustration);
Figure 2: Matrix organisation structure
The strength/pros of the structure include;
High-level collaboration– By use of the matrix structure, people with varying skill sets are brought together. A case example is in Saudi Aramco using this structure enhancing increased collaboration a cross-function communication.
Flexible and adaptable– The structure offer an opportunity to adjust well in line with dynamism of their work environment. According to Hunt and Madhavaram (2020), flexibility in Saudi Aramco contribute to success in resources use and adaptable for evolving market environment.
The weaknesses/cons are;
Confused roles– With different products being provided, potential of role ambiguity owing to different project leadership and management in place.
Conflicting priorities– In the application of matrix organisation structure, this contribute to staff developing priorities which compete. This lead to disputes owing to allocation of resources, deadline conflict and varying interests.
The underpinning reason for use of the structure include coordinating different disciplines in an organisation. For example, in Saudi Aramco, there are different disciplines including engineering, project management and oil and gas exploration. These work on sync for optimum achievement and success.
- Organisation strategy ensuring products and services meet customer needs
Taking into account of an organisation such as Ministry of National Guard Affairs (MNGHA), their organisation strategy is ensuring provision of healthcare to veterans in Saudi Arabia (Alyabsi et al., 2021). With MNGHA operating in the KSA healthcare sector, they are supposed to offer support to all the veterans in the country.
Link to strategic goals and objectives
In a broad context, organisation strategy is important to pursue detailed evaluation to understand external and internal business environment identifying their implication to an organisation (Tawse & Tabesh, 2021). By an organisation understanding their business sector, an understanding of issues which relate to inflation, competitiveness, demand and supply dynamics hence multiple customers attracted. The strategy is also required to be informed by varying expectation an organisation needs. In regard to MNGHA case, ensuring enough resources are in place are critical for achieving vision 2030 in KSA. This is by having a continuous support to the veterans in their local operations (KSA) a regionally in Middle East region. This is inclusive of the improving employees value proposition for being loyal in workplace. Further, they are in a position of recommending and enhancing the level of implementation of L&D initiatives to serve country needs and organisation sector of operation.
Strategic goals and Products/Services
In regard to KSA economic environment and necessity for implementing different approaches, a link to products/services is core. According to Isabelle et al. (2020), using Porter’s 5 Forces analysis process, how the organisation strategy influence products and services is prioritised. This is in regard to buyer and suppliers power, industry rivalry and market competition. In MNGHA case, provision of high-level quality veterans support services while ensuring they remain competitive in KSA health care sector. Hence, by understanding the needs of veterans in KSA, they ensure success in provision of quality healthcare services.
Further, guaranteeing the veterans satisfaction with the healthcare services offered by MNGHA is part of their practice. This is informed by the veterans needs and customising services. Also, they guarantee management of all operation costs which are incurred by the organisation operations successfully. To differentiate the support offered to veterans and other services in medical industry, MNGHA strategy involve conducting needs and demand analysis with potential gaps mitigated.
- Impact of interest rates, inflation and external factor
Through the use of PESTLE model, evaluation of different factors impacting organisation strategy is possible (Buye, 2021). These include;
Interest Rates
The factor is two-way with a direct implication on organisation strategy. As evidenced in Bauer and Rudebusch (2020), depending on the performance of an economy, interests charged/provided from the sum invested is varying. For example, in the times of COVID-19, the interest rates charged by banks had increased with less interest offered to investors. The situation has been increasing in KSA and also in UK with the interest rates varying from 6% to 7.5% monthly. The changes in the interest rates influence profits incurred by banking organisations and the financial market investors. In line with Liu et al. (2022), interest rates are found impacting profitability and how an organisation can dominate their business environment in their operations. In the entire economic supply chain, this has a direct implication on costs of products and costs of services sourced.
Priority– Taking into account of an organisation such as MNGHA, expansion need to be their priority owing to increased interest rates. By expanding their operations, the outcome of this would be facilitation by the government financially and legal injunctions. The outcome of this is leveraging on a holistic leverage on competitive advantage and dominance of the veterans support sector in KSA. The disadvantage of this practice entail inflation increase owing to a set of issues which are not elaborately highlighted.
Inflation
This is defined as a factor in the external business environment evidenced by an increase in incurred costs in sourcing for products and services (Karki et al., 2020). Taking into account of the MNGHA operating in KSA healthcare sector and veterans support, inflation rates directly impact their success in active practice. In KSA for example. their inflation rates have been in an increasing trend and currently estimated to be 3%. This has a direct implication on the policy in place for recruitment and business environment competition.
Priority– Due to the increasing inflation in KSA, the priority would be to come up with a contracting policy for guiding their practices. By embracing the strategy, MNGHA financial wellbeing would include rationalisation of their business environment with financial support sourced from the KSA government. The disadvantage of this entail likelihood of having bad policies and legislations passed affecting organisations in competition with MNGHA.
Social Factors
This represent a major factor in the modern business environment characterised with change in the labour force arrangement. According to Mies and Gold (2021), a case example is in UK where there has been an increasing aging population with KSA having majority of Generation Z and Millennials venturing into the business environment. The direct implication of this factor is the changes in the skills matching with their qualifications put into account. Also, the social factors impact on the broad organisation culture as it stipulates how things are one around here. This is meant for attracting highly qualified employees to the organisation.
Priority– Owing to the identified social factors, a restructuring approach need to be implemented and invested on as part of recruitment and selection process (Nikolaou, 2021). The disadvantage of the factor is that social dynamics lead to disruption of the larger macro-economic wellbeing. This is in regard to the scope of investment with the employees for improving overall performance in their business environment. Also, a lot of time can be used to restructure hence using important resources of the organisation in their restructuring strategy.
- AI use in organisation and impacts work
General Artificial Intelligence (AI)
Generative AI is defined in Fjelland (2020) as a process where the people practice professionals formulate various job roles informed by evaluation of person specifications, identities and past job roles/experiences. Similarly, through an embrace of the Generative AI, there is a possibility of successfully setting job roles informed by context and to draft individualised interaction by different stakeholders successfully. The rationale of this is guided by fact that approximately 40% of generative AI harness success in capacity development opportunities, efficiency in resource use and induction.
Robotics
For people practice professionals strategy, robotics are used in aiding how operations are automated. In line with Kim (2022), for empowering people professionals in terms of effective execution of challenging tasks and reducing costs of business, robotics are popularly used. The process entail enhancing interaction of people with machinery easing the operations in their business environment. For supporting embrace of robots, Shmatko and Volkova (2020) note that upto 60% of people professional roles are automated with robots increasingly being in use. In overall, it is projected that as of 2030, more than 30% of human manual jobs including office and clerical services would be automated and use robotics.
Use in Organisations and Work
Through an effective embrace of Generative AI, different departments revolution is evident (Brynjolfsson et al., 2023). The evidence is characterised by streamlining of their organisation process and increased creativity and custom-made initiatives in the healthcare industry. The drawbacks of use of Generative AI is likelihood of fraudulent and stealing impacting brand image or value proposition of MNGHA in their business sector.
The impact of robotics embrace is guaranteeing a successful automation of various job roles (Lai et al., 2020). further, the use of Generative AI is assuring detailed automation of entire job roles. The different function are prioritised and execution of jobs in their area of practice. The disadvantages entail reduced creativity and innovation in place. The phenomenon is evident owing to MNGHA failing to embrace a customised process in using Generative AI.
In regard to application of robotics, they directly impact workplace operations and an increased level of control of quality being a significant issue of interest. The drawback of the process include lacking appropriate adaptability and flexibility in their practice impacting the capacity for MNGHA achieving set/projected performance scope.
2.1 Charles Handy’s Model and David Rock’s Scarf
Charles Handy Model
This theory is informed by view that motivation of staff in an organisation is a factor of having a good culture which define practice, behaviours and values to pursued (Handy, 2022).
The different features include the following;
Power- This is a form of culture which is characterised by having the overall power in an organisation to be held by limited individuals mandated strictly to make decision. The followers/subjects are expected to follow their decisions and adhere to their expectations in the business environment.
Task Culture- In MNGHA case, this is the organisation culture which characterise the organisation operations. There are various individuals/teams mandated with a function of executing various tasks allocate (Sokolović et al., 2022). The teams are lead based on required proficiencies, qualification and effectiveness in executing their functions in form of person specifications.
Person Culture- For this form of organisation culture, employees take core function in an entity being the point of reference in the organisation operations (Handy, 2022). This means employees are regarded as the most important resource in the organisation. For MNGHA case, the embrace is not popular as they prefer team-based working to implement independent functions.
Role Culture– This is a type of culture which is define by use of skills, knowledge and capacity for implementation of different allocate functions. Taking into account of MNGHA organisation case, they come up with core decisions with a direct implication on their operation.
To summarise, the importance of the theory to organisation culture is informing different cultures to be in place in an entity. This is with the cultures defining how different players relate with each other for achieving collaboration. The relevant culture in MNGHA has been identified as task culture with others being relevant depending on organisation business environment requirements.
David Rock’s SCARF Model
This theory of human behaviour is informed by the view that an employee status, position, autonomy, relationship and perception of fairness all impact the behaviours (Vats & Sharma, 2022).
The different features of the model include;
Status- To achieve appropriate behaviours, individuals are supposed to have a feeling of appreciation, competency, acceptability and admiration in executing their workplace roles.
Certainty– Psychologically, being predictable and manage confidence is essential for manifesting goo human behaviours.
Autonomous- The human behaviours need to be characterise by freedom in executing their functions with no micromanagement by administration or management. The outcomes of this is increased effort invested in an individualised manner.
Relatedness- It is important to ensure mutual acceptability and elimination of a feeling of being isolated and lonely. This influence how the employees relates with the rest of the organisation.
Fairness– For achieving optimum exercise of their behaviours, organisation employees need to feel fairly recognised and their interests prioritised.
The importance of using the model in defining human behaviours is to appreciate different human behaviours evidenced by staff working in an entity. The decision making process need to be informing successful attainment of individualised expectations through elimination of any threats in guiding an organisation operation.
2.2 Employees selection or development impact organisation culture and behaviour
Employees Selection Impact on Organisation Culture
Please click the following icon to access this assessment in full