Table of Contents
Introduction to 5CO01 Assignment Example
BMC has long experienced significant staff turnover and low personnel satisfaction due to a corporate strategy that has largely disregarded the corporation’s people. Thus, the topics covered in this report aim to ensure that management understands the connections between organisational structure, business strategy, and the wider business environment, along with how company culture, activities, and people procedures play a part in achieving overall company objectives. Additionally, these activities demonstrate that for a firm’s goals to be accomplished, its strategy, goods/services, and clients must all be harmonized.
AC. 1.1 Evaluating Different Types of Organisational Structures.
A robust product range coupled with a clear plan mark crucial success factors. However, the firm’s organisational structure is unquestionably the most critical aspect, signalling where the firm is heading and the road it must take to get there (Hopkinson et al., 2018). The firm’s structure determines the employer-employee relationship, which defines each role, its position, and its subordinate or superior position within the larger organisational context (Flynn et al., 2020). Ultimately, selecting an appropriate structure is a critical component in maintaining a corporation. Also, while each corporate design has a unique array of benefits and drawbacks and may be appropriate exclusively to certain firms, implementing a suitable structure may amount to averting unnecessary hurdles and conflicts associated with operating a corporation (Flynn et al., 2020). In this context, examples of corporate structures to explore include the functional structure and the hierarchical structure.
- Functional Structure
The most prevalent organisational structure is the functional structure, which divides a company into sections based on routine job tasks (Hopkinson et al., 2018). Hotel businesses using this design, for illustration, may cluster all their marketing staff in one department, all their sales people in another, and all their customer support staff in yet another. Large businesses are exceptionally well-suited to this type of design, especially where they offer physical goods; smaller companies, nonetheless, may find this structure confining, opting for more viable alternatives (Baum, 2019). Also, when the company prioritises initiatives that favour knowledge depth over informational width, a functional structure is appropriate (Hopkinson et al., 2018). A functional structure, for instance, is suited for a primary research and design undertaking as each department’s capabilities may be fully exploited to maximize the project’s efficacy.
A functional structure has both benefits and drawbacks. This structure enables staff to specialize to a large extent and is particularly adaptable should the firm grow (Baum, 2019). Additionally, skill-based departments enable staff members to examine their industry and the areas for which they are best suited, providing proper accountability for everybody’s role; every department has distinct duties and responsibilities, eliminating labour duplication. However, if the company has a wide range of products or target markets, a functional design may create obstacles across separate activities, reducing employees’ comprehension of – and interaction with – various departments (Hopkinson et al., 2018). Furthermore, departments may face deviations from their exclusive goals in favour of broader company goals, precipitating operational rigidity and repetitiveness, resulting in decreasing morale and passion for work.
- Hierarchical Structure
Under a hierarchical arrangement, individuals occupy various positions within the firm, with each job level sitting above the next. Apart from those occupying the highest ranks (such as founders and directors) and those occupying entry-level positions, all employees operate under a line manager and may also be in charge of other employees (Baum, 2019). Hierarchical structures are suited for businesses with a restricted product portfolio. Nevertheless, their products sell well because they allow for a holistic control over design, production, quality, and delivery (Prtoric, 2021). For example, a business in the hotel industry may develop a well-known product – its exclusive product – that is immensely popular in multiple nations. Here, the firm’s president may oversee product quality in a single enormous facility before distributing the product through a network of suppliers, demonstrating how a hierarchical structure may assume absolute control of production and market supply.
A hierarchical design has both advantages and disadvantages. This design is consistent with clearly defined positions of accountability and authority – there are clearly defined paths for advancement and growth, which enhances workplace enthusiasm. Importantly, this structure supports the best use of specialist knowledge, fosters departmental commitment amongst staff, and establishes a culture of devotion to teams and the organization overall (Prtoric, 2021). A hierarchical setup, nonetheless, can yield unnecessary bureaucracies, precipitating slow responses to market/customer needs – it is attributed with communication issues across the organisation, notably amongst departments operating at the same hierarchical level, wherein every department may make self-serving decisions rather than decisions that benefit the overall business. Furthermore, a hierarchical setup with multiple managers and departments may be costly, and can cause conflicts amongst personnel at all levels (Boone et al., 2019).
AC. 1.2. How organisational strategy should be linked to products, services, customers and revenue.
The aggregate number of actions that a company must carry out to ensure long-term corporate survival comprise its organizational strategy. This strategy must be developed from the firm’s vision regarding the mission for which it exists in a certain industry (Flynn et al., 2020). Variables including resources, scope, core competencies, people, machinery, and competitive edge must all be addressed while developing a business strategy (Boone et al., 2019). In each firm, strategic goals serve a variety of functions, including determining the direction of the business, guiding target-setting, synchronizing organisational goals, and guaranteeing that these undertakings are measurable (Prtoric, 2021). The OGSM (Objectives, Goals, Strategies, and Measures) model is beneficial in formulating a business strategy since it aids in the division of broader objectives into specific and measurable strategies that can be employed to monitor and analyse company operations (Flynn et al., 2020).
The majority of businesses exist for profit-generation purposes. As a result, profit creation is a critical component of a business strategy. A firm’s business model defines its revenue generation strategy along with its specific market position (Flynn et al., 2020). Strategic objectives must be aligned with the corporate model in this respect. The revenue-generating strategy of a firm must be measurable and must incorporate aspects such as how customers are making purchasing decisions and their spending patterns, all of which are essential components of the business strategy (Prtoric, 2021). Nonetheless, running a corporation may be a costly undertaking, particularly when non-income-generating activities, such as those aimed at preserving brand recognition, customer satisfaction, and market dominance, are emphasized (Boone et al., 2019).
A strategic plan for products focuses on effective product development, whereas a business strategy focuses on the overarching company goals of maximizing shareholders’ wealth while serving the interests of both staff members and consumers (Prtoric, 2021). These processes are inextricably linked since they are designed to generate value for the firm and its stockholders. Products and services, for instance, must be consistent with the commercial goals of the organization. Here, product design professionals must comprehend the firm’s business strategy to assist the executive and senior management. Because their jobs are intertwined, building a link between business ambitions and product strategy necessitates frequent discussions between company executives and product development personnel (Prtoric, 2021). Developing a company strategy with customers in mind is critical for integrating customer needs with company goals; a customer strategy is critical for broadening market practices that optimize consumer value and enhance brand awareness.
AC 1.3. The Current and Ongoing Impact on Organisations of The Range of External Factors and Trends.
Organizations perform frequent market and competitive environment research as it provides a guideline for the market’s future. Examining the external environment also helps in recognizing market dynamics and, as a consequence, formulating strategic objectives that may help the firm obtain a competitive advantage. The external environmental examination serves a strategic function by aiding in the identification of direct and indirect components that influence a company’s operations. A favourable external environment assists the organization in recognizing prospects and hazards that may impact economic development while also crafting a more profitable future for the firm (Prtoric, 2021). As demonstrated in Table 1, PESTLE analysis is appropriate for evaluating a firm’s external market. Notably, innovations in the hotel industry are becoming more common with the aim of bettering the life quality of the UK’s ageing population (Filimonau and Gherbin, 2017).
|Factors relevant to the UK’s hotel industry||Trends and their effect|
|Political||International labour laws and tax reforms.||Brexit presents international complexities and bureaucracy for a multinational company like BMC.|
|Economic||Inflation and the oval living cost.||As the planet confronts the COVID-19 outbreak, the hotel industry has struggled as people are forced to apply social distancing precautions; nonetheless, improvements are visible.|
|Social||Population demographic factors.||To meet the requirements of today’s millennials, technological innovations have turned away from conventional media and toward social media avenues such as YouTube and Facebook.|
|Technological||Machine learning and artificial intelligence (AI).||Firms have taken a systematic approach to products and service delivery and carefully selecting their target customers, in conjunction with customer retention strategies.|
|Legal||Employment law adjustments.||Firms have taken a systematic approach to product and service delivery and carefully selecting their target customers, in conjunction with customer retention strategies.|
|Environmental||Pollution concerns, coupled with waste disposal and sustainability issues.||The global society has intensified pressure on businesses, particularly those in the hospitality sector, to reduce their carbon footprint. In addition, there is a rising push for hoteliers to source their supplies sustainably.|
Table 1: PESTEL analysis
AC 1.4 & AC 3.3. Current Issues and Causes That Identify Key Priorities Within Organisations That Will Affect Product/Service Delivery.
Pathak (2020) contends that expanding globalisation indicates that external elements have a bigger impact on the destiny of businesses; this theory is expanded by claiming that a successful company strategy should handle both internal and external industry issues. Furthermore, when new inventions enter the market, the external world becomes even more widespread, necessitating external environment analysis, especially if the principal business is product creation.
Drawing on PESTLE analysis, many trends/priorities are at the forefront of specialists and enterprises in the hotel industry. Brexit (political) marks the most sensitive matter in the United Kingdom. As Prtoric (2021) points out, the conclusion of the Brexit transitional phase will certainly necessitate some operational changes for UK businesses. My organisation (a five-star hotel) has been monitoring the Brexit issue closely and is especially pleased with the Trade and Cooperation Agreement, which went into force in January 2021. However, the firm has had to grapple with extra documentation when negotiating with other European Union partners to ensure adherence to the Value Added Tax system and customs declaration. This process results in administrative costs and bureaucratic inefficiencies. The restriction of open borders has also had an impact on skilled personnel in the hotel industry. When travelling outside of the United Kingdom, a skilled professional visa must be secured; this entails additional costs for the company as business travel meetings are interrupted. Essentially, the bulk of the company’s personnel will be British residents who will be required to get and renew a European Travel Information and Authoritarian System.
Furthermore, the firm is stressing the social dimension of health care, particularly the ongoing COVID-19 pandemic. Because of the outbreak, many employees have been forced to work remotely, reducing BMC’s market dominance. Nonetheless, the UK hotel industry has made considerable progress in rebounding from the consequences of COVID-19, with job listings increasing by 50% since July 2019. (Flynn et al., 2020).
Key Themes That Currently Shape the Work of an Area of People Practice (AC 3.3)
People practices refer to the structures and procedures that are used throughout a professional’s career. These practices are influenced by a variety of themes prominent in today’s corporate world:
Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) characterize the current corporate world. VUCA has an impact on business decision-making, risk mitigation, managing change, and solving problems. Volatility refers to a statistical measure that quantifies the magnitude of uncertainty, as well as a term that describes the type, rate, number, and magnitude of occurrences that represent a pattern (Murugan et al., 2020). Uncertainty denotes the capacity/incapacity to predict what will occur in the event of volatility; a lack of defined trends/patterns makes comprehending what will occur next and making judgements in this regard challenging (Murugan et al., 2020). Complexity entails the numerous functioning components that make change problematic during implementation; it might manifest as inadequate or even superfluous information (Murugan et al., 2020). Ambiguity occurs in the world of the unknown; circumstances may be hazy, information can be muddled, and messages can be jumbled (Murugan et al., 2020).
- The Input of Technology in The Virtual Workspace
Following the COVID-19 outbreak, the virtual workplace has grown in popularity. In this context, virtual reality (VR) replaces physical reality by utilizing computer-developed 3D graphics, allowing users to employ these alternatives visually using the VR headgear, tactilely using VR gloves, and entirely immersed using avatars (Flynn et al., 2020). Virtual reality (VR) has developed as a new personnel management and communication tool for various businesses. Following the COVID-19 outbreak, organizations have adopted subtle approaches to keeping staff engaged and coordinated while ensuring their safety (Prtoric, 2021). As firms consider making remote working a long-term prospect, one major impediment is the loss of connection to a specific team (Flynn et al., 2020). As a result, the demand for immersive tools like VR will rise, stressing the importance of understanding the psychology concerning how people are motivated to embrace new technologies.
AC1.5. How People Practices Can Impact on Organisational Systems and Structures.
An organisational structure is requisite for all businesses, irrespective of size and industry. Most organizations in this circumstance function within a well-defined framework that concisely articulates the reporting structure to which all personnel must adhere (Flynn et al., 2020). Because of their business setup, companies may achieve the highest degree of operational performance. There are two major categories concerning corporate structure: open and closed. Closed organizations have rigid boundaries between the corporation and the external world, whereas open corporations are impacted by the actions of their surrounding environment (Prtoric, 2021). In both cases, the value of Human Resources is significant as they function as a link between the corporate structure and the personnel – a firm’s most prized resource.
Because it is built on an open architecture, BMC’s policies and procedures are more adaptable. HR practitioners place a premium on convincing staff members of the importance of the external environment, particularly when the products/services generated are aimed at the surrounding community or society (Prtoric, 2021). This strategy is effective for supporting staff in screening the external world for features that may have implications for the firm’s core operational processes. The HR function has increasingly evolved, with the HR practitioner evolving as a more strategic ally who supports the performance of the firm (Flynn et al., 2020).
AC 1.6. The Impact That Technology Has on People, Work and Working Practices.
Technological advancements may be found in many facets of human life, from work to the household and other social relations. This sort of assimilation has been accelerated by the COVID-19 epidemic, which has reduced social interactions significantly. In a majority of cases, workplace technological developments have enhanced workplace efficiency and overall corporate effectiveness. Communication has evolved as one of the most significant areas of transformation caused by technological developments, with the emergence of avenues such as email and social media (Prtoric, 2021). Furthermore, by supporting an open-door culture, HR has facilitated internal communication.
Remote and flexible working are becoming more popular as a result of technological advancements. The only way to obtain more adaptability is to enhance staff networking. According to various studies, remote and flexible working improves employee morale and helps businesses recruit and retain talent. As per a CIPD (2020) study conducted in the United Kingdom, 28% of individuals interviewed claimed to have engaged in some sort of automation training initiative, while 35% claimed to have been engaged in the installation of new technological infrastructures at work.
References for 5CO01 Assignment Example
- Baum, T., 2019. Does the hospitality industry need or deserve talent? International Journal of Contemporary Hospitality Management.
- Boone, C., Lokshin, B., Guenter, H. and Belderbos, R., 2019. Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms. Strategic Management Journal, 40(2), pp.277-302.
- Filimonau, V. and Gherbin, A., 2017. An exploratory study of food waste management practices in the UK grocery retail sector. Journal of Cleaner Production, 167, pp.1184-1194.
- Flynn, D., Moloney, E., Bhattarai, N., Scott, J., Breckons, M., Avery, L. and Moy, N., 2020. COVID-19 pandemic in the United Kingdom. Health Policy and Technology, 9(4), pp.673-691.
- Hopkinson, P., Zils, M., Hawkins, P. and Roper, S., 2018. Managing a complex global circular economy business model: opportunities and challenges. California Management Review, 60(3), pp.71-94.
- Murugan, S., Rajavel, S., Aggarwal, A.K. and Singh, A., 2020. Volatility, uncertainty, complexity and ambiguity (VUCA) in context of the COVID-19 pandemic: Challenges and way forward. International Journal of Health Systems and Implementation Research, 4(2), pp.10-16.
- Pathak, R. (2020). What is PESTLE Analysis? Factors, Advantages and Disadvantages of PESTLE Analysis. [online] www.analyticssteps.com. Available at: https://www.analyticssteps.com/blogs/what-pestle-analysis.
- Prtoric, J. (2021). Let’s get technical: Brexit’s impact on the UK hotel sector. [online] www.welcometothejungle.com. Available at: https://www.welcometothejungle.com/en/articles/brexit-impact-on-uk-tech-sector.
- Sukumar, A., Jafari-Sadeghi, V., Garcia-Perez, A. and Dutta, D.K., 2020. The potential link between corporate innovations and corporate competitiveness: evidence from IT firms in the UK. Journal of Knowledge Management.