Assessment ID / CIPD_5CO01_23_01 5CO01 Organisational performance and culture in practice

British Airways employs a hierarchical structure familiar to large and established organizations, especially in the airline industry. The hierarchical structure allows for a transparent chain of command, efficient coordination of activities, and adherence to strict safety protocols (Shcherbakov & Silkina, 2021). This is crucial in an industry where safety and compliance are paramount, and operational decisions need to be made swiftly.

Visual Representation of Hierarchical Structure

Image retrieved from (ResearchGate, 2015)

Advantages and disadvantages of Hierarchical Structure:

Reasons underpinning the Hierarchical Structure

Safety and regulatory compliance are critical in the airline sector. Strict adherence to safety procedures and laws is ensured by a hierarchical structure, which provides for distinct lines of power and accountability. Furthermore, the maintenance of aircraft, staff scheduling, and airport operations are among the intricate and strictly controlled activities carried out by airlines such as British Airways. These complex operations are easier to handle effectively with a hierarchical framework. Because British Airways needs to maintain strict control over safety, comply with regulations, and run complicated operations, the hierarchical organisation works effectively for the company. In a sector where safety is paramount, this organization structure guarantees effective decision-making and coordination.

Organisational Structure-Functional structure

Tesco uses a functional structure because it enables the business to divide its activities into marketing, finance, operations, and human resources. Particularly in a highly competitive and price-conscious industry like retail, the functional organisation promotes specialisation within each area and enables effective use of skills (Vittersø et al., 2019).

A visual representation of functional organisational structure. Image retrieved from slideshare (Slideshare.net, 2022)                                

Advantages And Disadvantages of Functional Organizational Structure

Reasons underpinning the Functional Structure

A functional organization structure simplifies operations in the retail sector, which includes supermarket chains like Tesco. Organizationally, various departments—such as marketing, operations, finance, and human resources—are in charge of different sectors of the company. A functional framework also promotes specialisation. It enables staff members to concentrate on their areas of expertise, which is crucial in a company as big and varied as Tesco. Tesco’s corporate strategy as a major retail chain is well-suited to the functional structure. It makes specialisation, effective departmental operations, and customer service a priority. Tesco can maintain cost-effective operations, provide a broad selection of products, and respond to client expectations by structuring their company processes in this manner.

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First, sustaining steady growth in its operations is Tesco’s top priority. The business aims to increase both its domestic and global market share. This growth approach includes expanding into new markets, gaining a firm footing in areas with room for expansion, and raising market share in already-existing markets (Rui & Bruyaka, 2021). Second, Tesco focuses a lot of attention on consistently creating and adding new goods to its line-upline-up. Lastly, Tesco’s strategy is to broaden its market position by serving various clientele groups. The business customises its product line-upline-up to meet the requirements and tastes of different consumer groups, from budget-conscious shoppers to high-end customers looking for distinctive products.

Products

Tesco has a wide selection of items to meet the requirements and tastes of its many customers. The business continually develops new products and often adds them to its line-upline-up. Tesco increases its consumer base and ensures its relevance in a market environment that is constantly shifting by expanding its product offers.

The business uses both product development and market penetration techniques. Tesco enters existing markets with new items in the product development quadrant, satisfying the needs of its present clients while luring in future ones. In addition, market penetration entails boosting sales of current items in existing markets while focusing on clientele in whom Tesco already has a presence (Journal of Promotion Management, 2021).

Services

Tesco understands the value of customer retention and loyalty in its growth plan. The business invests in excellent customer service to strengthen its position in the market (International Journal of Production Research, 2020). Its online shopping platform offers customers the convenience of buying from home. Home delivery services increase client convenience even further while fulfilling the changing demands of contemporary customers.

Additionally, Tesco’s Clubcard loyalty programme is crucial to keeping customers. It promotes repeat business and fosters long-lasting connections with its devoted consumers by providing incentives and prizes. 

Customer-Centric Approach

Tesco’s clientele is made up of both individuals and families from various socioeconomic and racial backgrounds. To cater to each segment’s unique demands, the corporation acknowledges the variety of its consumer base. The company appeals to price-sensitive customers seeking value items and premium customers wanting high-quality and exclusive offerings by providing a wide choice of products at various price ranges (Thirumuruganathan et al., 2023).

The long-term plan that describes the goals, objectives, and steps necessary for an organisation to attain them is its organisational strategy. To maximise competitive advantage and satisfy stakeholder expectations entails identifying the path the organisation intends to pursue, making decisions regarding resource allocation, and setting priorities (F.Dieffenbacher, 2022).

Connection Between Strategy and Products/Services

Particularly in the case of a business-like Tesco, the relationship between an organisation’s strategy and its goods and services is essential. Offering a broad selection of goods to satisfy consumer demands—from groceries to apparel and electronics—is the core of Tesco’s business model. The kinds of things they sell, their quality and their pricing are all determined by their approach. One way to address the increased demand for healthier options could be to increase the selection of organic products.

Tesco’s business approach has an impact on the services it offers as well, such as home delivery, loyalty schemes, and internet shopping. Convenience and customer-centricity are goals that these services support. To draw in and keep clients, it makes strategic sense to modify these services in accordance with consumer tastes and industry developments (Jefferson, 2021).

Importance of Aligning Products and Services with Strategic Goals

Firstly, Tesco can set itself apart from its competitors by aligning its products and services to the plan. Tesco distinguishes itself in the environmentally concerned market by prioritising eco-friendly items, which aligns with sustainability objectives. Better financial performance is another benefit of an efficient alignment. Value for money is the cornerstone of Tesco’s business strategy, which boosts sales and profitability when applied to its goods and services. There could be disadvantages, though. Tesco runs the danger of losing business to competitors who are better at comprehending and satisfying the needs of their customers if their goods and services are outside their plan. Market share and revenue may also decline as a result of this imbalance.

Connection Between Strategic Goals and Customers

Tesco’s strategy places a premium importance on client loyalty and satisfaction. Their goal is to effectively and efficiently attend to consumer needs. Tesco can strategically decide on product assortment, price, and services by knowing client preferences, buying behaviours, and demographics. By allowing such a relationship, happy customers are more likely to stick with Tesco, which promotes its reputation. Tesco can also discover new markets and client groups by knowing the demographics and interests of its customers, which helps it achieve its strategic objective of growing and expanding its market (Xaif, 2023). Finally, Tesco’s strategy is continuously adjusted with the help of customer input and feedback. For instance, Tesco might modify its approach to accommodate a growing customer demand for healthier items.

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Especially in the aviation business, which is vulnerable to economic swings, economic uncertainty, which may be both short-term and long-term, has a substantial negative external impact on British Airways. Consumer expenditure on air travel and corporate travel demand may be impacted by changes in GDP, interest rates, inflation, and currency exchange rates (Aldrighi et al., 2021). Recessions in the economy or large-scale economic shocks like the COVID-19 pandemic or the 2008 financial crisis can significantly impact an airline’s operations and financial performance. British Airways must emphasise its financial flexibility and resilience in response to the changing states of the economy. When the economy is struggling, the airline should use cost-cutting strategies, including improving fuel efficiency, simplifying operations, and lowering unnecessary spending.

Environmental Regulations

Environmental laws and worries about climate change have a substantial long-term beneficial or harmful influence on the aviation sector, including British Airways. Governments and international organisations enforce stricter emission laws and support environmentally friendly aviation activities (Amankwah-Amoah, 2020). These rules may call for carbon pricing, emissions trading plans, and the deployment of more fuel-efficient aircraft. Sustainability and environmental responsibility need to be given top priority by British Airways. The airline should spend money on more modern, fuel-efficient planes and look into alternative fuels to lower carbon emissions to comply with environmental requirements. In addition to ensuring regulatory compliance, implementing green projects and adopting sustainable practices may improve the airline’s brand image and draw in eco-aware passengers.

Technological Advancements

The airline sector is constantly changing due to rapid technological improvements. They may affect a corporation favourably or neutrally, and their consequences may be immediate or delayed. British Airways operations are changing due to digitalisation, artificial intelligence, and big data analytics, from reservation systems and customer service to maintenance and safety protocols. Adopting cutting-edge technology is essential for maintaining competitiveness and satisfying changing customer expectations (Noor, 2022). British Airways must give digital transformation and technology adoption a top priority. The client experience will be improved, and operational efficiency will increase by investing in cutting-edge I.T. infrastructure, mobile apps, and user-friendly online platforms. The airline may personalise services, provide targeted discounts, and optimise flight schedules using data analytics.

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Modern work settings are only possible with collaboration systems like Zoom, Microsoft Teams, and Webex, allowing seamless communication and teamwork among employees regardless of location. Project management, file sharing, instant messaging, and real-time video conferencing can be used to encourage collaboration and innovation. The ability for staff to work in virtual teams, cross-functional cooperation, information exchange, and the production of more original and creative solutions are just a few of the effects (Lindblom & Martins, 2022). Furthermore, technology enables workers to work remotely, promoting flexibility and a healthy work-life balance, drawing talent from all over the world, and eliminating the need for office space. Additionally, technology has made hybrid work possible. It becomes possible to mix in-office and remote work, giving staff members more freedom to manage their schedules and boosting job satisfaction.

Automation and Job Displacement

Robotic process automation (RPA) includes employing software robots to automate routine, rule-based processes, which may significantly improve operational accuracy and efficiency. It also prompts worries about possible job displacement, though. Efficiency and precision are only a couple of the effects of RPA. Employees may concentrate on more strategic and value-added duties due to RPA’s ability to speed up repetitive processes and eliminate human error (E-Fatima et al., 2023). Additionally, it results in lost jobs. Specific roles may lose their jobs due to regular work becoming automated. For workers to take on higher-value jobs or investigate new parts where human skills, such as creativity, critical thinking, and empathy, are vital, organisations must prepare for upskilling and reskilling.

A.I. in Decision-Making Processes

An excellent illustration of how A.I. analyses massive volumes of data, producing insights and assisting in data-driven decision-making processes are AI-powered analytics tools. Impacts on workplaces include things like data-driven decision-making. AI-driven insights improve the quality of decision-making, resulting in more intelligent and successful company strategies (Alghamdi & Al-Baity, 2022)—moreover, client service and customisation. By analysing client data and anticipating preferences, A.I. creates personalised customer experiences that increase customer happiness. Finally, ethical and prejudice issues: When significantly using A.I. for decision-making, there are worries about the ethical ramifications, possible biases, and data privacy. Organisations must create explicit policies and ethical frameworks to ensure ethical A.I. usage.

Automation, artificial intelligence (AI), and other workplace technologies are significantly altering work and employment due to recent technological advancements, correctly indicating the significant influence of technology on workplace dynamics and organisations. Organisations now depend on information software, which includes databases and data analytics tools. It facilitates data-driven decision-making, improves productivity, and streamlines processes. By optimising plans and allocating resources, companies can use data analytics to gain a deeper understanding of their consumers, market trends, and internal operations (Manyika & Sneader, 2018).

There is also software for talent acquisition. This software revolutionises the hiring procedure. It streamlines applicant sourcing, screening, and selection by utilising AI and automation. It increases the effectiveness of HR departments, lessens hiring bias, and improves the applicant experience, all of which affect the calibre of talent an organisation can draw in. On the other hand, talent management software helps with employee growth and retention. It provides resources for succession planning, learning and development, and performance management. This technology increases employee engagement and, as a result, productivity by assisting organisations in identifying and developing top talent.

The Systems, Applications, and Products in Data Processing (SAP) is another category and example of technological advancements. SAP is a business resource planning (ERP) system designed to combine different business functions. Processes across departments are streamlined, data visibility is improved, and collaboration is encouraged, all of which influence work and help to increase organisational efficiency (Investopedia, 2023).

Negative impacts of technology 

Even if technology has had great benefits, it has also had harmful ones. Particular vocations may become obsolete due to automation and artificial intelligence replacing monotonous work. Workers may experience uncertainty and job instability as a result of this. Furthermore, a skills gap is frequently the outcome of the quick speed at which technology is changing. Workers unable to adapt to the changing landscape of technology may find themselves unemployed or working for less than full time. The entire process of upskilling and reskilling is expensive and may cause financial disruptions for organisations (Li, 2022). Privacy issues can arise when technology is used for data collecting and analysis. Workers and clients are concerned that improper handling or unauthorised use of their personal information could result in privacy violations and legal problems for their employers.

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image retrived from (Learnlife.com, 2021)

Features and Principles of Schein’s Model

Artefacts

According to Schein, the most prominent elements of organisational culture are represented by the Model’s outermost layer. The tangible, perceptible components of culture are referred to as artefacts. Examples include the organisation’s dress code, office design, symbols, rituals, and outward behaviours.

Espoused Values

The second layer comprises an organisation’s proclaimed views, philosophies, and ambitions, also known as its espoused values. Mission statements, vision statements, and official documents frequently mention these ideals.

Shared Assumptions/underlying beliefs

The deepest layer comprises shared assumptions, the underlying attitudes, conventions, and beliefs that unintentionally direct an employee’s behaviour (Pietruszka-Ortyl et al., 2021). Individuals’ perceptions and interpretations of events inside the organisation are influenced by shared assumptions, which are deeply engrained and frequently taken for granted.

Organisations may uncover cultural trends that influence employee behaviour and decision-making by comprehending the underlying common assumptions. Using this study, executives may determine if the present culture meets the organisation’s values and goals. The Model offers a framework for enacting cultural reforms to produce a more uplifting and productive organisational culture, should any cultural misalignments be found.

Tuckman’s Model of Team Development

Forming

During this preliminary phase, team members are introduced to one another and start to comprehend the objectives and duties of the group. There is a feeling of uncertainty, and the members frequently look to the leadership for direction.

Storming

Confrontations and power struggles may occur as team members voice their contrasting thoughts and ideas. To work effectively together moving ahead, the team must manage these disputes positively.

Norming

During the norming phase, the team creates a set of accepted standards, principles, and practises. Team members begin to cooperate and form a sense of unity and trust.

Performing

The team is fully functional, and its members collaborate well to accomplish their objectives. The completion of tasks and mutual support are highly valued.

Adjourning (or mourning)

The team disbands at this point, either after accomplishing its goals or as a result of the conclusion of a project. As they bid farewell to the team, team members could feel various emotions, including grief.

Analysis of Team Dynamics

Leaders may implement effective tactics to assist the team’s development by recognising the stage of the team’s development (Xu & Wang, 2020). For instance, in the formation stage, leaders may set goals and offer clear guidance to lessen ambiguity. Second, excellent communication and conflict-resolution skills are essential to overcome obstacles and establish trust during the storming phase. Thirdly, during the norming phase, leaders may create a feeling of teamwork and the development of shared values and norms. Finally, during the performance stage, leaders may concentrate on job distribution and ensure team members can access the tools they need to succeed.

A visual representation of the Tuckman model

Image retrieved from (Agile Scrum Guide, 2021)

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