Human Resources- Value and

Contribution to Organisational Success

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Contents
Introduction......................................................................................................................................4
LO1 Evaluate the importance of organizational design to the delivery of sustainable
performance.................................................................................................................................5
P1-Evaluate the importance of organisational design theory in the context of organisational
structure and fulfilling organisational strategy, using specific organisational examples............5
Organisational design theory:..................................................................................................5
Organizational Design as a historical concept:........................................................................5
Contemporary organisational design:......................................................................................5
Designs to meet organisational strategy goals:........................................................................5
Impact of the external business environment on organizational design:.................................6
Organisational objectives:.......................................................................................................6
Agile organisation:...................................................................................................................6
M1-Apply appropriate theories and concepts to critically evaluate the importance of
organisational design, using specific organisational examples...................................................7
Theories and models for organisational design:......................................................................7
D1-Make appropriate recommendations supported by justification based on a synthesis of
knowledge and information to show how to improve the delivery sustainable performance.....9
Sustainable performance:.........................................................................................................9
LO2 Analyse the requirements to develop motivated, knowledgeable and experienced
individuals and teams................................................................................................................10
P2- Analyse the different approaches and techniques used for attracting, maintaining,
developing and rewarding human resources to create a skilled and dedicated workforce........10
Motivation and motivation theory:........................................................................................10
Human capital theory:............................................................................................................11
Knowledge management:......................................................................................................11
Using job analysis to identify job requirements:...................................................................12
M2- Use specific examples to critically analyse different approaches and techniques to
motivation, human capital and knowledge management...........................................................12
Techniques to human capital management:...........................................................................12
Techniques to motivate employees:.......................................................................................12
Techniques to knowledge management:................................................................................13
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 LO3 Apply contemporary knowledge and research to support emerging HR developments...14
P3- Conduct research and use contemporary knowledge to support evidence for emerging HR
developments.............................................................................................................................14
HR practices and skills requirements:...................................................................................14
The future of HR as a function and process:.........................................................................14
Increasing demand of better work life:..................................................................................14
Impact of Cross cultural engagement:...................................................................................15
M3- Evaluate how emerging HR developments will affect the role of the HR function in the
future..........................................................................................................................................15
D2- Make valid judgements and conclusions supported by a synthesis of knowledge and
research information..................................................................................................................15
LO4 Evaluate the relationship between organisational design and change management.........17
P4- Evaluate how organisational design has to respond and adapt to change management and
the relationship that exist between the two using a specific organisational situation...............17
Barriers to change:.................................................................................................................17
Overcoming barriers to change:.............................................................................................18
M4- Evaluate the different types of changes that can affect organisational design, including
transformational and psychological change...............................................................................18
Lewin’s change management model:....................................................................................18
Kotter’s theory:......................................................................................................................19
Transformational change:......................................................................................................19
Psychological change:...........................................................................................................19
D3- Critically evaluate the complex relationship between organisational design and change
management...............................................................................................................................19
Conclusion.....................................................................................................................................20
Bibliography..................................................................................................................................21

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Introduction
Human resource management is the process for an organization through which it manages its
employees and steer them toward the goal. It encompasses the idea of holding the human forces
as most valuable assets thus generating values for the company by improving them. The core
idea of human resource management is to get the best from the employees by monitoring and
supervising them and make them more resourceful. In this assignment, the proper management
of human resources of a company has been discussed in context of various theories and real time
examples, concludes with justified observations and recommendations.

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LO1 Evaluate the importance of organizational design to the delivery of
sustainable performance

P1-Evaluate the importance of organisational design theory in the context of organisational

structure and fulfilling organisational strategy, using specific organisational examples

Organisational design theory:

To devise the organisational design theory, its historical concept and the contemporary ground
need to be measured and discussed thoroughly. To figure out the designs that will help the
organisation meet the goals, optimum strategic measures need to be incorporated within the
structure of the organisation.

Organizational Design as a historical concept:

Organisational design, since its beginning in 19th, has been through a lot of changes and ever
since the industrial revolution, it has worked its way up to this date by improving and
improvising its core concepts. It has always tried to upgrade the efficiency and productivity of an
organisation by defining the values and ideas that are to be incorporated to achieve the goal.
Different models have been followed and improvised since then to achieve the perfection
through conceptual experimentation and changes and thus it evolved to what it is today.

Some of the organisational design theories are discussed below.

Contemporary organisational design:

Contemporary designs are devised by exploring the methods and strategies used by the past
organisations. The weaknesses and lacking those organisations faced are to be phased out by the
newly perceived ideas and designs so that the productivity and the efficiency of the company
increase significantly.

Designs to meet organisational strategy goals:

To be successful, a company first needs to figure out its goal and target customers. Customers
rely on their favourite organisation and brands to meet their demands. When an organisation

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maintains its standard services and provides sufficient supports for its customers, it creates a
loyal customer range. This is how a business extends its boundary and reaches out to more
potential customers.

 Impact of the external business environment on organizational design:

There are several external factors that can influence and organization’s design. Such as, legal
situation, technological change, market competition, social situation, political concern etc.

Organisational objectives:
Organisational design objectives are to achieve the goals by incorporating suitable strategies and
upholding sustainable performance standard.

Agile organisation:
An agile organisation is one which adapts to the change immediately and moves forward to
outrun the competitors. The capacity to redesign the structure, strategy, people, technology and
processes in a swift way is what agility stands for.

Characteristics: some characteristics of an agile organisation is :

 Iteration and experimentation

 Technology, systems and tools
 Continuous learning
 Seizing opportunities
 Role mobility
 Information transparency
 Flexible resource allocation
 Performance orientation
 Open environment

People: in an agile organisation the human resources are the people working for it and they
follow some certain ideas. They are:

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  Performance orientation
 Shared leadership
 Fir for purpose accountable cell

Process: they follow a shared vision and purpose with action oriented decision structure that
maintains a cohesive community within the organisation.

Culture: an agile organisation adapts to change fast and they are always learning. It has culture
of sharing ideas and visions between employees and the leadership which promotes
accountability and acts like as an incentive.

M1-Apply appropriate theories and concepts to critically evaluate the importance of

organisational design, using specific organisational examples

Theories and models for organisational design:

There are several theories about organisational design changes. These theories try to determine
the suitable approach for the company to pursue a sustainable organisation design. Theories like
McKinsey 7s model, Change theory, change typologies, transactional/ transformational
organisational design etc. are described here.

McKinsey 7sModel:
Tom Peter Robert Water developed this theory in 1980 as a consultant in McKinsey consulting.
This is a futuristic model that discusses the changes in an organization to pursue the strategies
that are highly recommended. There are 7 elements categorized as soft and hard consisting of
structure, strategy, system, staff, styles, shared values, skills. This is a model mostly suitable for
small venture or start ups.

For example, starbucks is a coffee chain that operates in a number of small outlets. It has a
defined structure and strategies to operate the chains that support the staffs and their style
including their shared values and skills following the 7s model.

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Change Theory:
This was developed by Wischnevsky and Damanpour, the idea is that changes will exist only
when the organisation is operational. Every organization has to go through changes despite their
design and structure and strategies. The basic idea of this theory revolves around inevitable
changes that an organization goes through. The core idea of the theory is that a change or
changes may occur in an organization following a discontinuous or brief change happening in
any single or in all domains of the organization.

For example, a study made by exploring banking companies showed that a revolutionary
transform in the system may occur by installing fresh faces in the authoritative positions which
may or may not influence the overall performance of that particular organization.

Typologies of Change
When an organization is about to adapt with the changes, an organizational map is required to
figure out which changes are required and which systems are to adopt and where. Ramaprasad
suggests that typologies of change incorporate three states, those changes are to occur in
structure, pattern and in the set of elements.

Transformational/Transactional Organization:
The sole purpose of the idea is to find out the suitable leadership approach for an organization.
Transactional leadership prefers transaction between the employees and the management
authority. On the other hand, transformational leadership maintains the intimacy between the
subordinates and leadership to work toward the goal.

For example, the instructor of the bubble factory leading by distributing tasks among the
participants is transactional, whereas, a discussion among the involved staffs solving issues is
transformational.

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D1-Make appropriate recommendations supported by justification based on a synthesis of
knowledge and information to show how to improve the delivery sustainable performance

Sustainable performance:
Sustainable performance is the assurance of the affectivity, productivity and liability of the
company. To achieve this state, a company needs to figure out its short term and long term goals
both. Working to achieve the short term goals will satisfy clients goal immediately and also will
ensure its trustworthiness among clients. In the long run, the long term goal and short term goal
both will fashion the foundation of company goodwill for the foreseeable future.

To improve sustainable performance, a company needs to emphasise on its employees. Investing

on employees is a form of investing for the company itself. Employees need to be motivated to
give their best and be fully functional in times of need, which is why it is important that
employees are rewarded as an acknowledgement for their contribution and hard work for the
company. Increasing incentives, bonuses etc. are lucrative measures that can be adopted.

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LO2 Analyse the requirements to develop motivated, knowledgeable and experienced
individuals and teams
Employees are the key to the company’s success. A motivated, enthusiastic, goal oriented
workforce can achieve the goal for the company. Therefore, employees need to be nurtured
according to their needs and be provided with necessary opportunities so that they can work on
themselves to be more productive.

P2- Analyse the different approaches and techniques used for attracting, maintaining,
developing and rewarding human resources to create a skilled and dedicated workforce

Motivation and motivation theory:

Motivation can be categorized into two types. First one, we can call it extrinsic.

Extrinsic motivation

It is when an individual is driven by the outer rewards and achievements that are awarded by the
company for their certain performance. It helps them being more goal oriented and work towards
achieving the success they desire for; to shape their lives they dreamed of.

Intrinsic motivation

It is their inner force. This is what they feel after the targeted achievement. This is the
satisfaction they gain which drives them toward more success. Motivation works when it is
turned into outcome, and it works in two ways.

Content vs. process motivational theories:

Content theories work with the idea about the motivating factors that motivate people which
deals with a person’s needs that drive him toward work. Whereas, process theories work with the
idea of the ways of motivating people.

Issues about low level motivation:

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An employee can work to climb higher in the career ladder; this is the sign of a proactive
employee. Also, an employee can work out of the fear of losing his position or job. Whatever the
reason is, a company needs its employees to perform and work with full capacity.

Human capital theory:

Theodor Schultz, an economist coined the term “Human Capital” in 1960. An employee acts as a
capital for the company. Whatever the employee brings for the benefit of the company is
measured and defined as human capital. As a part of the organization, an employees’ worth is
measured according to his capability, knowledge, experience and dedication. Human capital
theory discusses about the inequality of all employees, as they are assumed to have different
skills, gifts, exposure and motivation of different types. Each of them has something different to
offer, and that makes it difficult to treat them equally. According to the inventor of the idea,
investing in employees is basically investing for company. Knowledge is valuable. An
organization must work for its employees so that they can gain knowledge and apply them to the
benefit of the company; this is how they are turned into human capital. Clearly, a company is
only successful when its working staffs are qualified and adequate to carry out its goal and
outperform others.

Knowledge management:
In a healthy and friendly working environment, employees do hold responsive relationships
among them which create a chance for them to share their knowledge with each other. This is a
very productive way to boost collaboration and build them as a team. Knowledge management is
important for a company for many reasons. As knowledge is power, it increases the thirst for
more information thus creates a learning environment where everyone is getting acquainted to
something new and learn to use it, share it and spread it among others. It also maximizes the
expertise of the employee, thus maintain an expert workforce. An organisation that values
knowledge and expertise are always guaranteed to have the best spirited personnel in its
workforce.

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Using job analysis to identify job requirements:
Job analysis means the exploration and evaluation of a job post to determine the liabilities and
accountabilities for that particular one. Analysing the job will help to determine the employee to
figure out what skill sets are required to perform the job. It is also important for the company
while hiring staffs, as it is the way to determine the required knowledge, capacity, qualification,
motivations of the potential hired staff.

M2- Use specific examples to critically analyse different approaches and techniques to
motivation, human capital and knowledge management

Techniques to human capital management:

As mentioned earlier, human capital is the basic foundation for an organisation. A company must
aim for success and therefore successfully managing its human workforce is mandatory.
Performance of the employees depends on his skill set, dedication and goal achieving mentality.
But it also depends on the company he is working for. A company which is providing a healthy
and friendly working environment with necessary opportunities for its employees to sharpen
their skill and nurture their abilities will definitely outperform the company which is not
investing in its workers. Human capital is not a myth as it is proved in reality to have more
qualified and productive employees while they are considered as valuable as any other
belongings of the company.

Techniques to motivate employees:

There are some strategies to attract employees and increase the appeal of the organization to
them. For example, sharing profits with them, or awarding them bonus for any increased profit
will make them feel important and be dedicated to their organization. Employees can also be
allowed to be compensated or given travel bonus which might work as an incentive and boost
their motivation thus dedication.

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Techniques to knowledge management:
A company is successful only when it is operated not only by the terms of the higher authority,
but when the insights and ideas of its employees are also valued. Engaging workers and
considering their feedback is very important for a company to shape its future course. Involving
the workforce into the decision making always works in favor of the company, as it is a booster
for the concerned to be more productive and give their best. Besides these, arranging training and
workshops are always helpful to sharpen the employees. Thus the workers will be able to work
on their skills and upgrade themselves.

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LO3 Apply contemporary knowledge and research to support emerging HR developments
Human resource development is framework that works for enhancing the human capital of the
company by improving both the employee and the company to be fully functional. This is a
contemporary idea that deals with challenges, difficulties, issues that might occur within the
company or with the employees working for it.

The idea has now exceeded the administrative and operational level and expanding. Because of
the vibrant change in the global economy and resource management ideas, developments in the
human resource sector must adapt to the globalisation factor and shape accordingly.

P3- Conduct research and use contemporary knowledge to support evidence for emerging
HR developments

HR practices and skills requirements:

To be an effective and change making factor, it is important for HR to have extensive research to
figure out the contemporary changes worldwide and considering the global environment and its
emerging and changing developments.

The future of HR as a function and process:

Technological advancement has changed the working environment vastly in the past decades. To
cope up with that and to be as functional as required, functions and actions of HR need to evolve
accordingly and meet the contemporary demands.

Increasing demand of better work life:

By the advancement of time and technology, people are opting for better life and opportunities.
A better working environment, flexible operational hour with apt leadership that balances the
idea of comfortable and worthy life style is what a skilled employee looks for. Satisfactory
environment means a satisfied staff therefore, clients get the quality service and company
achieves the market goodwill.

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Impact of Cross cultural engagement:
Globalisation has now become a determining factor for almost all international companies. Now
companies are hiring employees regardless of their ethnicity and backgrounds, which creates a
diverse working environment for the employees and require them to adapt with the eminent
changes.

M3- Evaluate how emerging HR developments will affect the role of the HR function in the
future
As discussed earlier, human resource sector is now developing and shaping according to the
trends rapidly. It is now changing the role of its previous functionality and working path.
Previously, human resource development used to focus on process and project designing and
formulating course, now a days, it has changed into increasing the capacity and productivity of
its employees.

Technological advancement is also a changing factor. Now a day everything is getting dependent
on technology and consequently, development regarding human resource sector is also shaping
its path considering the technicality and aptness as to this.

Now a day, old school ideas are being redundant and new ideas are being more appreciated.
Tasks now are being distributed and evaluated through personal appraisal and making it more
competitive by connecting more people worldwide.

D2- Make valid judgements and conclusions supported by a synthesis of knowledge and
research information
Human resource department is a supporting hand for an organisation to track its investment.
Eventually, it is the employees who bring success or hold it back for the company. By measuring
talents, capabilities, skills and experiences, employees contribute a great deal for a company to

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make it successful. Therefore, the duty and the responsibility of the responsible personnel are
very important and valuable for the company. Therefore, the timely changes and adapting to it
and bring development and changes is important.

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LO4 Evaluate the relationship between organisational design and change management

An organisational design is determining a particular process or strategy in decision making

according to the structure of the organisation. On the other hand, change management is the
change in process of decision making which requires people with more knowledge and expertise
in related area. According to the organisation structure, organisational design and change
management are interconnected by various means. A company thrives when it knows that
changing according to time and trend is inevitable and adapt to it, otherwise it fails to attract the
skilled personnel with expertise and is ultimately outrun by its competitors.

P4- Evaluate how organisational design has to respond and adapt to change management
and the relationship that exist between the two using a specific organisational situation
Change management has the effecting factors like society, politics, economy, technology etc. the
employees of the organisation are allowed to voice their concerns and insights in times of change
and redesigning the organisation. To adapt and become comfortable with the inevitable changes
within or outside the company, one needs to modify and shape himself to blend in the new
trends. Motivating them and rewarding them and following up with their individual appraisal is
an effective way to boost them up.

Barriers to change:
Initially a change never comes easy. It has to undergo many challenges internally and externally,
only after overcoming them successfully a change can have its place. Mostly, an internal barrier
is the people inside the company. Different people working for the company with different drives
and motivations, therefore a change might not be acceptable to all of them equally. A successful
human resource management considers these variables and works its way out. On the other hand,
external barriers are the extensive competition with the competitors, legislative barriers, social
and economic structure etc.

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Overcoming barriers to change:
Managing people turn their way around a vital skill for a management. It is their responsibility to
steer the company toward the right way with skilled people overcoming all potential barriers
including the company personnel or any outside challenges.

M4- Evaluate the different types of changes that can affect organisational design,
including transformational and psychological change

There are particular changes that affect the design of the organisation. A new environment
requires changes to adapt to the new situation. New environment can be a new area, or a new
structure, or anything that requires employees to update and upgrade their existing knowledge
and adaptability. Behavioural changes of employees are also an important factor. It affects the
whole organisation either way. There can be new technologies brought into action for the
betterment of the company, employees need to get themselves acquainted with the advancement
and work accordingly.

Some of the change theories are discussed below:

Lewin’s change management model:

The main idea of this model is to split the process of changes into three categories and analyse. It
helps to break the whole process into small ones and to comprehend easily. Three stages are:

 Unfreeze
 Make changes
 Refreeze

At first step, acknowledging the mistakes and preparing to make necessary changes is what
unfreezing refers to. After that, at the second step, when the changes have been deployed, it
reaches the final step where it protects the changes made and prevents the old mistakes to
resurface.

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Kotter’s theory:
Kotter’s theory mostly emphasizes on the people behind the change rather the change itself. An
idea to surface the urgency among people and accomplishing goals by maintaining the
momentum is the theory’s main idea.

Transformational change:
It happens when a company appears as a different organisation than before. It can happen
because of the change of their business idea or policy. They can go fully automated from manual,
or they can operate with a balance of human workforce and machines, therefore the change can
be anything.

Psychological change:
It is an important factor for a company to consider while it is undergoing a change. Employees
are expected to reform and adapt to the new situation but there can be failures. There can be
people who are finding it difficult to adapt to the new condition or environment, therefore,
psychological help should be awarded.

D3- Critically evaluate the complex relationship between organisational design and change
management
A strategy for a company might be useful and effective for a while, but the structure should also
be supportive to its cause. There are many issues that an organisation might face that can slow
down their progress. Rectifying them and adapting to the changes is the key to overcome those
pitfalls. The aims and targets for the company should be determined beforehand so that the
strategies and plans can be devised accordingly. Optimizing the current ability with considering
the current mechanism of the management is important and necessary. Both of the factors are
initially dependant on each other and changes in any of them should be made after considering
the outcome of affecting the other.

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Conclusion
Human resource management is an art of overseeing and driving the people of a company to
achieve the targeted goals. By the advancement of technology, it is clearly apprehensible that the
manpower of a company is the most valuable asset and only proper nurturing and using them
appropriately can make an organisation thrive. By incorporating proper strategies in the core
sectors of the company structure, it develops and adapts according to the demands of the market
thus outperform its competitors.

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