Level 5 Associate Diploma in People Management

Organisational performance and culture in practice

- Unit 5C001
Week 2
Learning outcomes

On completion of this unit, you will:

1. 2. 3.
Understand the connections Understand organisational Understand how people
between organisational culture and theoretical practice supports the
structure, strategy and the perspectives on how people achievement of business goals
business operating behave at work. and objectives.
environment.
Week 2

• AC1.3: Analyse external factors and trends impacting organisations to

identify current organisational priorities.
• AC1.4: Assess the scale of technology within organisations and how it
impacts work.

• AC2.1: Explain theories and models which examine organisational culture

and human behaviour.
Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
AC1.3 Analyse external factors and trends impacting organisations to
identify current organisational priorities.
Environmental scanning

• It is vital to ‘scan’ your

environment, in order to forecast
and react to change.

• This needs to be applied to long

and short term aims to support
organisational performance.

What is an example of an
environmental scanning tool?
PESTLE analysis

The outside world in which an

organisation operates can be
examined by using a PESTLE
Analysis.

The six areas which might affect an

organisation can be seen as:
PESTLE Analysis of an organisation

A PESTLE analysis is a useful tool to help

you consider the potential impact of
influences in the macro-environment.

It allows you to identify possible key

changes in the outside world, in a
structured manner.

That external environment is broad and

complex, so any tool to help you assess
existing and future influences on your
organisation is worth using.
SWOT analysis
SWOT analysis

Weaknesses:
Strengths:
attributes of
attributes of
the SWOT analysis can be used for:
the
organisation
organisation
that are
that are helpful
harmful to • Business planning
to achieving the
achieving the
objective.
objective.
• Decision making
• Problem solving
Opportunities: Threats:
external external • Strategic planning
conditions that conditions • Project planning
are helpful to which could do
achieving the damage to the
• Career development
business’ business'
objectives. performance
SWOT analysis - Group Exercise

Take one of the following organisations:

• Facebook
• McDonalds
• Uber
• (or another of your choice)

Conduct a SWOT analysis on it

Competitive context

With more and more sources of

information available, being able
to effectively process and analyse
information is crucial for an
organisation’s success.

Who are your competitors?

Organisational lifecycle - priorities
Current business priorities

• Financial constraints
• Restructuring and reorganisation
• Skill and labour shortages
• Seasonal factors
• Technological developments
• Remote working
• Covid – working from home
• Shift to new products and customer bases
Specific financial issues

• Employment costs; wages and equal pay

• Inflation & Price stability affects customer spending
• Balance of payments deficit/surplus
• Taxation and spending; disposable income for customers
• Interest and exchange rates; imports and exports
• Economic growth or decline; post covid
Current priorities & issues

• What are some of the issues

that might occur in some
sectors but not others?

• How can HR change its

approach to support
organisational needs?
Example: ageing workforce

• What are the pros and

cons of ageing
populations and
workforces?
• What opportunities
does it give us?
• What are the
disadvantages?
Labour shortages

• Are you prepared for an older worker profile and delayed retirement?
• Have you considered introducing part time positions and dual jobbing?
• Are you aware of the workforce skills that you will need in the future?
• Are you prepared to train your workforce to gain those skills?
• Are your plans for succession planning sufficient for future labour turnover?
• Will you face difficulties with recruitment and retention in the near future?
• Have you considered new/alternative sources of labour?
• Have you considered growth through productivity gain rather than employment
gain?
• How will the local factors affect your business?
Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
1.4 Assess the scale of technology within organisations and how it impacts
work.
Scale of technology

• Technology is vital in sharing

information

• Crucial to maintain competitive

advantage

• Change in methods of communication

• Can you think of examples when this

might be of use to HR?
Technology in HR

Technology is used in:

• Reward Managemnet
• Talent Management
• Workforce planning
• Absence management
• Recruitment & selection
• Just about any HR function
Technology - CIPD

CIPD report into technological trends recommended the following for the HR
profession. We should:
• address digital skills gaps and develop skills in people analytics and data
interpretation
• lead on managing resistance by engaging with our people throughout digital
change programmes and fostering a digital readiness culture
• challenge other business areas to consider the impact of digital transformation
on people and their work.
• address ethical considerations when handling data and implementing new
technology and digital programmes.
• build our in-house reputations as teams with business acumen and a
credible business partner that works collaboratively and asks the right
people questions.
Break
Learning Outcome 2
Understand organisational culture and theoretical perspectives on how
people behave at work.
2.1 Explain theories and models which examine organisational and human
behaviour
What is culture?

What is culture?
How would you describe the
“culture” of your
organisation?
If you could try and change
the culture, what would you
want to do?
Models of culture – Handy (1976)

Power Role
radiates from the organisation
the person or rests on the
persons at the pillars of its
centre functions

Task Person
fulfilment of
Exists primarily
specific goals or
for the benefit of
projects and
the members of
getting the job
the organisation
done.
Models of culture – Handy (1976)
POWER
• Radiates from the person or persons at the
centre.
• Decisions are taken based on influence rather
than by any procedure.
• Few ‘rules’.
• The individual is more important than their
position or job title.
• This is a competitive, risk taking politicised
culture in which empathy and trust are key to
effectiveness.
• They react quickly and everything depends on
the qualities of the centre.
• Examples – entrepreneurial businesses.
ROLE
• Organisation rests on the pillars of its functions.
• Each role or job description is more important
than the individual who fills it.
• Rules and procedures with power according to
position.
• It provides security, predictability accountability
and reliability.
• Successful within a stable environment, it copes
badly with change.
• Tends to be very hierarchical and relies on
established procedures, systems and precedent.
• Examples – bureaucracies.
Models of culture – Handy (1976)
TASK
• Based on fulfilment of specific goals or projects
and getting the job done.
• Free of rules and procedures.
• Atmosphere of mutual respect in which an
individual’s expertise relevant to the task is key.
• It is an adaptable, collaborative, team culture,
and is responsive to change.
• It can be unstable and difficult to control. It
might change to a role or power culture if
resources are in decline.
• Found where market is competitive, product
life short and speed of reaction important.
• Examples - design offices, architectural
practices.
PERSON
• Exists primarily for the benefit of the members
of the organisation and tend to be rare in
commercial organisations.
• Found in only a few organisations but many
individuals have a preference for this e.g.
university professors.
• Management hierarchies and control
mechanisms possible only by mutual consent.
• Individuals have almost complete autonomy
and any influence over them is likely to be on
the basis of personal power.
Models of culture – Handy (1976)

Which of these best

fits your organisation?

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Systems theory

Silo thinking

I write the advert and Job Specifications

I carry out CV and application sifting

I interview candidates

I deliver the induction training

Systems theory

Silo thinking

I write the advert and Job Specifications

Holistic
System
I carry out CV and application sifting approach

I interview candidates

I deliver the induction training

Systems theory

Holistic System
approach
Organisational behaviour

1. Promoting a Culture of free

speech & thinking
2. Creating a flat structure
3. Promoting a team culture
4. Recruiting those people with
the behaviours required
Management and leadership theory

Your management style is strongly influenced by your beliefs and assumptions

about what motivates members of your team:

• If you believe that team members dislike work, you will tend towards an
authoritarian style of management;
• On the other hand, if you assume that employees take pride in doing a good job,
you will tend to adopt a more participative style.

McGregor looked at the way in which employers and employees traditionally

viewed work.
McGregor’s Theory X and Y

Theory X workers
• Don’t like working
• Do as little as they can get away with
• Don’t like things to change
• Need to be told what to do
• Cant be trusted to make a decision
• Are only interested in MONEY
• Must be closely watched
• Cant be trusted or relied upon
McGregor’s Theory X and Y

Theory Y workers
• Enjoy their work
• Will work hard to get rewards
• Want to see new things happening
• Will work independently
• Can be trusted to make decisions
• Are motivated by things other than
money
• Can work unsupervised
Management styles

Autocratic Authoritative
Affiliative
(directive) (visionary)

Participative Pacesetting (do Coaching

(democratic) it myself) (developmental)

Chaotic (free-
reign)
Management Styles (Hay-McBer)
The Autocratic (directive) manager
makes all the decisions, keeping the
information and decision making
among the senior management.
• “Do it the way I tell you” manager
• Closely controls employees
• Motivates by threats and discipline
The AUTHORITATIVE (Visionary)
style has the primary objective of
providing long-term direction and vision
for employees:
• The “firm but fair” manager
• Gives employees clear direction
• Motivates by persuasion and feedback
on task performance
Management Styles (Hay-McBer)
The AFFILIATIVE style has the primary
objective of creating harmony among
employees and between manager and
employees:
• The “people first, task second”
manager
• Avoids conflict and emphasizes good
personal relationships among
employees
• Motivates by trying to keep people
happy
The PARTICIPATIVE (Democratic)
style has the primary objective of
building commitment and consensus
among employees
• The “everyone has input” manager
• Allows the employees to take part in
decision-making; everything is agreed
by the majority.
• Motivates by rewarding team effort
Management Styles (Hay-McBer)
The PACESETTING style has the primary
objective of accomplishing tasks to a
high standard of excellence:
• The “do it myself” manager
• Performs many tasks personally and
expects employees to follow his/her
example
• Motivates by setting high standards
and expects self-direction from
employees
The COACHING style has the primary
objective of long-term professional
development of employees:
• The “developmental” manager
• Helps and encourages employees to
develop their strengths and improve
their performance
• Motivates by providing opportunities
for professional development
Management Styles (Hay-McBer)

The CHAOTIC / Laissez-faire leader

delegates much authority to
employees; the leader’s role is
peripheral and staff manage their own
areas of the business

40
Management styles: discussion

Autocratic Authoritative Participative Pacesetting (do

Affiliative
(directive) (visionary) (democratic) it myself)

Coaching
Chaotic (free-
(developmental
reign)
)

What situations in HR and L&D would benefit some styles over others?

What might be long-term effects on workplace culture be if a particular style is used

too much or used inappropriately for the context?
Finish