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 Contrary to having the organisation structures informed by the job description or person specifications of employee, this structure is informed by products and services. An illustration of this in AIHR (2024) is illustrated herein; Figure 1: Illustration of Divisional Structure Source: AIHR (2024) Saudi Aramco (organisation I am familiar with) operate by embrace of divisional structure. They have multiple divisions in KSA pursuing various functions. According to Organimi (2024), divisions are led by managers working independently of each other. Advantages Increased flexibility and adaptable– Modern business environment is characterised with immense volatility and uncertainties (CIPD, 2023a). For example, in oil and gas sector where Saudi Aramco operates, use of the structure ensures substantial adaptation. Innovation and technology embrace enhanced– Since the employees are free to exercise their views in this structure, the end up becoming innovative and embracing technologies. According to Saudi Aramco (2025), Saudi Aramco is a leader in being innovative and embracing technologies. Disadvantages Lacking collaboration– With the different divisions working in autonomy, this contributes to reduced collaboration or team-based working. The communication process is similarly hindered (Gaspary et al., 2020). Duplication of resources– The different divisions having similar functions end up encountering tasks duplication multiple times. According to CIPD (2024b), this is cost intensive to manage them. The underpinning rationale of using divisional organisation structure is to improve their large-scale operations. With large revenues and capital used in harnessing their operations, using the structure assists in easier management. Also, for the different divisions working towards achieving major goals, this structure is appropriate for Saudi Aramco. Matrix organisation Structure This is a type of organisation structure where many leaders are in place for aiding an organisation operation. The many leaders are involved to direct how the departments execute their functions. An illustration of this as evidenced in Indeed (2022) is as illustrated in the following; Figure 2: Matrix organisation structure Source: CIPD (2024) In KSA, Saudi Arabian Airlines is found using this structure. This is in their local and regional operations in KSA and Middle East. Advantages Enhancing team-based working– For the different directors and leadership working in the structure, it entails employees, subordinates and leaders all working as a team. According to CIPD (2023b), this lead to a successful execution of their functions. Efficiency in using resources– With the duplication of roles lacking as the functions are independent, this similarly contribute to an efficient utilisation of resources. The amounts of wastes are lowered significantly. Disadvantages Lack of elaborate job functions– Considering the structure have various functions working in sync, the functions of the employees lack an elaborate distinction. This is in the Airlines leading to mismatch in execution of their functions. Conflict on prioritisation of roles– With this structure having many single functions reporting to functional leadership, the outcome of this is lack of an elaborate understanding of assigned functions. According to CIPD (2024), conflicts in roles execution occurs. The underpinning rationale for using this structure is ensuring technical functions being implemented. For instance, Saudi Arabian Airlines effectively implement technical areas of handling airlines, aircrafts management and entire air transport. Also, coordination of operations in different nations and jurisdictions hence successful operations. |
| (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 |
| Selected Organisation Strategy– For the selected organisation which is Saudi Aramco (I am familiar with), is ranked as a leader in the energy sector in KSA. As evidenced in Saudi Aramco (2024), this is with more than 90 years of active operations with approximately 750,00 staff internationally. A major strategy they are using is achieving sustainable operations in oil and gas industry. The organisation strategy is guided by necessity for enhancing reliability and affordability of energy and gas products. Having their priority in the oil and gas sector, their strategy is to achieve low-level carbon emissions. This is with their carbon footprint similar lowered to the benefit of the population. A second strategy is Saudi Aramco getting actively engaged in development of reliability, affordability and sustainable communities’ co-existence. This is at the same time offering maximum value/benefit for different stakeholders in their entire organisation employee lifecycle (CIPD, 2024c). Strategic goals and objectives The business environment/economy where Saudi Aramco has based on their operation mean the necessity for evaluating market factors being the main strategy. According to CIPD (2024c), this enhances the necessity for pursuing strategic goals and objectives anchored on their business sector. In Saudi Aramco case with their strategy anchored on achieving energy needs of international community. In order to gain in this approach, they excel and embrace relevant positioning in the energy sector to enrich KSA economy and also their staff. Samargandi et al. (2024) recommend the research and development department to work on their organisation vision and also promoting achievement of KSA Vision 2030. Strategic goals and Products/Services For the identified Saudi Aramco organisation strategy, aligning it to strategic goals and objective is informed by economic and business environment factors. In line with Samargandi et al. (2024), the Porter’s 5 Forces Analysis model can be embraced for identifying the relationship. This notes the extent of organisation strategy enhancing leveraging on comoetitive advantage, buyer power enhanced and suppliers. Therefore, for Saudi Aramco organisation case, they work towards reinforcing high-level quality upstream and downstream oil and gas sector placement. This is with an optimum steward for KSA hydrocarbon different resources. Similarly, the strategy promotes how they maximise long-term based value with upstream strategies prioritising on leveraging on competitive advantage in their production level. In summary, with Saudi Aramco organisation operating in oil and gas industry, priority is to offer high-level quality oil and gas products to people, government institutions and industry customers groups. Through making sure appropriate integration, an increased ability of success local and international market is attained. By their competition being regional and internation, they differentiate significantly form the rest by maintaining sustainable operations and dominating their markets. |
| (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 |
| Interest Rates These are charges which are charged to the borrowers to lending organisation calculated from the amount advanced (Bauer & Rudebuschv, 2020). In other words, this represents percentage of the full amount borrowed/saved annually. For KSA, Alfalih (2024) report note by January 2025, interest rates were at 6.52% an increase from 6.21 in April 2024. Therefore, the interest rates fluctuations have an impact on successful operations. This is since it influences the customers spending capability and success in such an environment (Vayanos & Vila, 2021). For example, Saudi Aramco operation in oil and gas sector, increased interest rates means that they also increase the prices offered to their customers. This affect customers retention. Priority– Expansion of business portfolio need to be the organisation priority. According to Dong et al. (2025), the outcome of this priority is increased sources of finances to run their operations. Being a public sector organisation for example, Saudi Aramco would be successful in getting government financing of their operations. The challenge of this is cost intensive as more investments would need to be done for expansion purpose. Inflation Rates This is noted to include changes in costs for products and services as a consequence of lost value of local trade and currency. According to Adaramola and Dada (2020), inflation change positively or negatively impact the organisations for various people and entities. In KSA for example, as of 2022, inflation rates were at 3%. This is a reduction from 2.1% in same time last year. The increased inflation rates for example reduce the ability of Saudi Aramco customers to purchase oil and gas products. The outcome of this is limiting their efficiency in operations. Priority– Implementation of contraction policy is relevant for managing the identified factor. The rationale of this is identified in (REF) as reduction of the overall expenditure budgeted for running various organisation operations. This has a direct implication on managing organisation financial positioning. The disadvantage of this priority is potential disruption of the organisation operations with injunctions to the court of law. Social Factors This is defined as a set of concepts which influence and shape individuals’ behavioural tendencies, attitude possessed and lifestyle. Considering KSA for example, social factors is influenced by cultural aspects, stratification of society and demographic features. According to Al-Khraif et al. (2020), for contemporary organisations environment, immense change amongst Generation Z and Millennials are involved substantially in labour sector. Priority– Expansion of the scope of their operations is the best priority for managing the social factors. According to Dong et al. (2025), an increase in engagement of Millennials and Generation Z lead to management of practices in tandem with contemporary business sector. The limitation of the priority is costs incurred to recruit more people to include the more recruits. |
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