TG’s current organisational structure Evaluate its appropriateness for the future


Executive Summary

This report provides an evaluation of organisation development and design in the TG organisation that operates in the travel industry. To achieve the intended objective of this assessment, the areas of focus have included an evaluation of organisation development and design, TG organisation structure and its appropriateness for the future and external factors affecting TG and their impact on change and organizational development have been evaluated. The need for organisation change has been informed by the current issues facing the organisation operations such as duplication of functions, differences in terms and conditions and differences in job descriptions. Also, there has been a need for achieving a sustainability organizational practice to attain FTSE4 good sustainability index. Since having the right organizational culture is critical, a model has been used to evaluate TG culture. The analysis has been informed by the different external factors affecting the business environment where TG operates.

In the end, organisation development and design recommendations of TG attainment of its sustainability goal have been provided. This is since a successful merger to TG with the other local organisations has led to a transition from a divisional structure to a more functional structure. As evidenced by the external business environment analysis, there still prevail issues that limit successful change management in TG. As such, several recommendations have been provided with the problems faced and potential mitigation identified.




1.0 Introduction

In the contemporary business environment, sustainable organisation practices and coping up with consistently evolving business environment, require alignment of structural, cultural and strategic approaches. To achieve this, organisation design and development identified by CIPD (2020a) as a process and outcome of shaping an entity structure for aligning with business purpose and context of its existence is evaluated. While organisation development assists in maximizing the value accrued from organisation resources (CIPD, 2020b), organisation design ensures that an organisation is successful in influencing HR activities and shaping outcomes of organisation development (CIPD, 2019a). Therefore, it can be argued that organisation development strategies are used in facilitating potential change management which support an organisation design and realignment of the outcomes. This is, however, dependent on organisation culture, norms and behaviours. To underscore the importance of organisation development and design, this report focuses on Travel Group (TG) established through mergers. The current organisation structure of TG and its appropriateness for the future and external factors affecting TG and their impact on change and organizational development has been evaluated. In the end, organisation development and design recommendations of TG attainment of its sustainability goal have been provided.

2.0 Organisational Structure and Analysis

2.2 Analysis of the Structure

In a strategic organisation change such as TG merger process, the hierarchy would change significantly to ensure set goals attainment. To affirm this, Tortorella and Fogliatto (2014) note that in a change process, organizational culture is influenced by the structure. Currently, in future, part of TG strategies would be enhancing elaborate purpose establishment for a compelling vision and management of resistance. As identified in the case study, TG has different operational divisions which are elaborately defined with an independent sphere of competency (see figurer 1).

Figure 1: TG’s Current Organisational Structure

From this description, the structure is divisional since all operations and functions are separated distinctly.  According to CIPD (2015), the relevance of an organisation structure in change is informed by the fact that it plays a vital role in governance, policies implementation and employees division. Therefore, inadequacies that characterize TG has a direct implication on their current operations. In particular, TG is directly affected by functions duplication with different negative impacts (see figure 2);

Figure 2: Current TG organisation structure challenges

The existence of support departments, as noted in figure 1 (IT, finance, marketing, public relations and HR) for the TG ensure that they are in a position of harnessing strategic operations. According to Mathur and Nair (2016), in such a structure, the organisations are best placed in increasing the level of accountability and assets level. This is through bundling all their activities in daily operations. This is also coupled with increased efficiency, aimed at promoting an asset-based or focused model. All skills and capabilities of their employees are in alignment with essential responsibilities in TG hierarchy. Nevertheless, in a broader perspective, TG multiple departments in each operational department could lead to roles conflicts hence a challenge in achieving the core purpose of the Group. This could have influenced the strategy of TG in merging all their pre-existing travel agencies to establish a single brand of Travel UK. In such an organizational structure, it is possible to operate through a more centralized approach and solving task duplication.  This structure as Islam et al. (2015) noted ensures that the competencies are transferred to subsidiaries with main competencies being centralized.

To analyse the effectiveness of the TG organizational structure, the SWOT Analysis can be used………………………………………………………………………….

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