Solution

Practice

Answers to the Questions

1.1 Organisation Structures Evaluation

Organisation structure 1 (My organisation)-Hierarchical Organisation Structure

In my organisation which is Al-Rajhi Bank (ARB), a hierarchical structure is used. This is an appropriate structure for the organisation owing to its operations as a Joint Stock Organisation in Saudi Arabia (KSA) banking sector. Operating an upward of 650 branches it has an overall capital of SAR500bn in form of operating capital (Alrajhi Bank, 2024). The organisation structure is as shown in the following;

Figure 1: ARB Organisation structure

Advantages and disadvantages

For the advantages, they include;

Success in career development– By using hierarchical structure, it is possible to operate an elaborate commend chain in the organisation. According to Maine et al. (2022), clear command chain eliminate any ambiguity in communication with clear roles implementation.

Increased employees loyalty– The hierarchical structure is noted to have the employees working in various division and departments. As a result, high-level skilled employees highly loyal to ARB belong to their talent pool (Khassawneh &  Elrehail, 2022).

The disadvantages include;

Costly to implement– With hierarchical structure having many departments and levels working together it is costly to manage all their interests (Loh et al., 2020). This is in regard to payment and also their facilitation.

Slowed making od decisions– For all the levels in the organisation, they have a role to play in active decision making (Khassawneh &  Elrehail, 2022). This contribute to reducing the capacity of adopting and fitting effectively to this type of a structure.

Reasons underpinning

In an organisation such as ARB using this structure, due to multi-national nature of their operations, collaboration of all their departments is important. According to Maine et al. (2022), this has a positive implication of increasing efficiency and effective organisation operation. Also, with top-level management involved in ARB organisation structure, maximum authority is enhanced. The employees in the organisation execute their functions with limited command.

Organisation Structure 2 (different organisation)- horizontal organisation structure

The second selected organisation structure is in Saudi Awwal Bank (SAB) operating in KSA banking sector (SAB, 2024) is horizontal organisation structure. This structure offers freedom to different departments to work independently but in synch with each other. According to Gaspary et al. (2020), this lead to significant gain for subordinate and less managerial control. The organisation structure is as follows;

Figure 2: SAB Organisation Structure

Advantages and disadvantages

For the advantages, these include;

Increased satisfaction– Having this form of structure creates independence among the employees. As evidenced in Guinot et al. (2021), this independence reduce the feeling of being forced or coerced to execute their functions. The outcome of this is an increased performance levels

Optimum resources application– For the identified organisation structure, available resources are well utilised considering there are different areas or compartments of the organisation. Using the structure lead to what Cherif (2020) note as success in data and information sharing resources appropriately in all these departments.

Their disadvantages are;

Lowered performance– For this type of structure, having many departments operating in the organisation means inter-dependence. According to Guinot et al. (2021), the interdependency lead to the organisation failing in achieving their goals due to lack of seamless operations of the different departments.

Lack of elaborate expectation– In the use of hierarchical organisation structure, staff have an elaborate freedom of expression and execution of their functions. This is due to the lack of coordination in their active practice.

Reasons underpinning

The underpinning reason for using the structure is guided by necessity for providing enough control of all people. The rationale of using the structure is guided by what Wang et al. (2020) identify as opportunity presented for engaging the management and employees through an active collaboration process. The collaboration means that the different departments are coordinated with clear understanding of all their assigned functions.

1.2 Organisation strategy, products, services and customers connection

Organisation strategy definition

This is defined in Kamal et al. (2020) as organisations plans specifying the extent in which an organisation is allocating resources for supporting infrastructure, performance, marketing strategy, inventory and different organisation practices.

For identifying ARB organisation strategy, it is appropriate to apply Ansoff Matrix model (Clarissia, 2020). The components of organisation strategy as illustrated in the following;

Figure 3: Ansoff Matrix Organisation Strategy Component

Source: (Clarissia, 2020)

For market strategy, note that after COVID-19, ARB has invested in new strategies intended to improve banking process and system of operation (SANG, 2022). This also include the application of an online banking system. Further, their product development entail expanding their portfolios beyond Islamic banking with diversification of their operations evident for more customers.

Strategy and Products

Considering ARB operations in their banking sector, the products offered entail various banking products. Through their innovativeness and technologies adoption, their products and services are of best strategy. The outcome of this is to leverage on competitive advantage and capitalise their banking industry practice. Through this, the organisation becomes well positioned to attract highly qualified experts.

Strategy and Services

ARB strategy lead to achievement or inclusion of quality services to their customers. This is by their strategy targeting to improve the possibility to integrate best strategy in their functional departments. According to Kamal et al. (2020), strategy assists to identify the various clients groups in an organisation. For managers and admin teams in ARB, their services are efficient as opposed to other banking sector organisations.

Strategy and Customers

Considering ABP, their strategy include ensuring that all customers are satisfied. Their customers’ needs are to access mobile banking, bank groups and safe customers money deposit. According to SANG (2022), their strategy ensures that customers’ needs are prioritised in ensuring that they are successful. Lack of prioritising on this strategy means that the employees are not satisfied hence do not offer quality services to their clients. The needs of the different customers are supposed to be holistically aligned with the organisation set strategies.

Considering vertical integration, Tabim et al. (2021) note that different people practice professionals are involved to successfully design organisation strategy. This is while ensuring they are aligned with corporate and organisation functions. Horizontal integration on the other hand ensure that people practices professionals work in collaboration and as such increased impact.

1.3 External factors and trends

Considering ARB organisation to base this answer, PESTLE analysis is relevant to evaluate Political, Economy, Social, Technologies, Legal and Environment (CIPD, 2023). This is important for offering a guidance to people practice professionals in coming up with strategic decision (see appendix 1).

Economy– From a broad context, in UK, MacroTrends (2024) report note that their economy is expected to grow by approximately 0.7% as at 2023 and with 1.2% in 2025. In KSA where ARB operates, World Economics (2024) note that the economy is expected to increase with 4% annually owing to the sustained increase in non-oil economic practices. Th outcome of this include ABP having fewer resources for their operations.

Priority– Due to the identified economic factors, ARB priority is to source for government facilitation in active economic operations. Also, by expanding their operations to include flexible working strategy, they are able to manage their economic performance.

Social– This include substantial increase in Generation Z and Millennials in the labour market where they constitute 40% of KSA labour force (Bieleń & Kubiczek, 2020). The increase in Millennials and Generation Z impact strategies used in resourcing and also retention of qualified employees. For instance, this group of labour force have their preference on enhancing career growth and using modern technology platforms in recruitment.

Priority– For this trend, the priority is to invest in more technology as part of resourcing strategy for ARB to the increasing number of Millennials. Also, as opposed to use of financial pay for the employees, total rewards strategy can be provided to guarantee optimum satisfaction of this category of employees (CIPD, 2023a).

Technology– In Baptista et al. (2020) report, there has been an increased demand for technologies in modern organisations with upto 6%. This is with international technology demand similarly increasing with future technology use similarly being on the rise.

Priority– Considering this factor, prioritisation is to ensure that ARB has invested in Artificial Intelligence and different technologies today for successful HR management process. Also, through capacity development, all employees in ARB would be facilitated with appropriate resources for using technologies successfully.

1.4 Scale of Technology

Scale of technology is identified in Wang and Feng (2020) to has significantly increased with  organisations popularly using technologies in their operations. The popular technologies in use in the last 5 years include and not limited to Artificial Intelligence (AI), virtual technologies and more which have initiated multiple opportunities.  For instance, in ARB, through an embrace of   modern technology,  increased communication has been in place with their overall efficiency enhanced.  To evidence the scale of technology use, in year 2023  for instance, Baptista et al. (2020) noted that AI had attracted an upward of 200 million users. In  Saudi Arabia (KSA), technologies including video conferencing have been on the rise with approximately 4 million users in the country. The outcome of this has been increasing the overall output in these organisations with operations in their sales departments, accounts teams, marketing and career development increasing substantially. There are nevertheless negative implications of this trend including lack of appropriate data security, costly implementing the technologies and  easily becoming phased out.

The technologies applicable in ARB operations include;

Artificial Intelligence–  In Confalonieri et al. (2021), this is a type of technology which simulate human-based intelligence using machines and specifically computer-based system. The effectiveness of using AI is to be appropriately positioned to use sufficient data, analysis of the existing correlation and patters and apply them in future-based predictions.  To support this, Gkinko and Elbannan (2023) noted that through the application of AI, organisations achieve 70% of increased cost saving and efficient business practice, embrace of networking and IT as part of their operations.

Considering the strengths/advantages of technology use, it improve data oriented decision making core for improving recruitment and selection, performance management strategy and leadership management. Additionally, in Confalonieri et al. (2021) using technologies lead to effective resourcing decisions and career development which are not influenced directly by technology increase. The disadvantages/drawbacks of using this lead to less biasness in use of AI. According to Petrova et al. (2020), there is limited human correlation and privacy of data in use.

Compensation Management Software–  This is  similarly a popular technology used in management of remuneration, bonus offered and benefits categories. In line with Yuan and Yicun (2021), in contemporary organisations, the tool is appropriate for success in providing clear definition and automated data efficiently and consistently for their successful implementation. The strengths or advantages of use of the technology is guaranteeing success in compensation structure used fairly. Further, it is holistic and used in efficiency with zero misunderstanding prevalent (Petrova et al., 2020). Their drawbacks/challenges entail likelihood of issues with data privacy and security, loss and identity confusion. For ARB, sensitive pay data could not be appropriately interpreted hence misunderstanding prevalent.

2.2 Theories and Models

Edgar Schein Model

The main assumption of Edgar Shein Model is that organisation culture has a direct and positive implication on success of modern organisations (Coghlan, 2021). The success of the organisation culture is positively impacted by external environment relations and faced issues. Also, in line with Edgar Shein Model, it is appropriate as it note the best organisation characteristics are being integrated in the organisation. The positive impact of this is successful achievement of organisation goals and objectives achieved. In ARB for example, their organisation culture is reflected on how they are required to be wearing uniforms at all times, facilitated and offered with full-paid holiday.

In regard to the values, Coghlan (2021) highlight Edgar Shein as evidencing the level of staff inclusion to implement their philosophy and believes which guide their practice. This represent a phenomenon of ARB integrating their active collaboration with all staff as part of their practices.

Maslow Hierarchy of Needs

For this human behaviour theory, it highlight scope in which people execute their functions in their organisations guided by scope of their satisfaction in their assigned roles. According to Abbas (2020), staff capitalise on an increase in commitment to execute their functions while rewards provided and supporting active business operations. In evaluation of Maslow Hierarchy of Needs, Numonjonovich (2022) highlight its relevance to identify human needs grouped to physiological, safety levels, love and belongingness, self-esteem levels and self-actualisation. The relevance of application of the theory entail entities ensuring high-level commitment and being motivated in execution of their functions.

Through the psychological needs integration, Abbas (2020) staff achieve a feel of being comfortable in their business sector hence increasing level of work-life balance. The safety needs are identified to include all factors which have an influence on job security and observations core to achieve sufficient health and wellbeing. Considering love and belonging, Numonjonovich (2022) identify this to include team-based practice in an organisation. The outcome of this is to appreciate and motivate ARB in being highly motivated and executing their functions. Finally, the self-esteem lead to implementation of diverse rewards impacting staff commitment and motivation in implementing their roles.

2.2 People Practices in Organisation Culture & Behaviours

In line with the provisions in CIPD HR Professional Map, people practice professionals roles include strategies pursued in overall employee lifecycle (CIPD, 2023a). This highlight efficiency in executing their roles important for active organisation operations.

The impacts include;

Positive Impact

This include scope of making sure values and believes are holistically pursued for a particular organisation case. In line with Lukianov et al. (2020), organisation culture and behaviours followed have a direct impact to influence staff recruitment with set values in alignment with objectives of organisation. Also, appropriate environment is developed to grant a chance to take part in L&D initiative and increased retention.

In organisation design and development, people professionals ensure they engage employees who only subscribe to their values. In ARB case, by use of interviews and psychometric tests, commitment is increased with integrity consistently put in place.

Another positive implication include coming up with an appropriate culture providing relevant support to policy development. In line with CIPD (2023a), people professionals are engaged in varying roles, ensuring there is no discrimination or harassment reported in the organisation. The relevance of the identified policies in ARB entail pursuing a diversity and inclusion culture in the organisation. Taking into account of Saudi Aramco context, resourcing has a direct impact on aligning organisation culture with expected achievements.

Negative Impact

People practice professionals functions can have a negative implication on organisation culture and behaviours. According to Kotera and Ting (2021), this is in context of motivation and acquisition of appropriate health and wellbeing standards. This is supported by Herzberg-2-Factor Theory (Mkpojiogu et al., 2022), both the hygiene and motivating factors have a direct implication on staff motivation levels. The people practices functions is prioritising on best practices leading to relevant staff wellbeing and how they are motivated to execute their functions.

Considering reward strategy, failing in offering sufficient rewards such as the base payment and benefits can lead to reduced retention and commitment of the employees. In Al Halbusi et al. (2021), this is noted to be inclusive of how they are committed and need for adhering strictly to ethics and values setting. For the organisations which do not implement appropriate meaning in their practice, this represent a significant gap. This entailed a successful role modelling and noted as lacking relevant relations with emerging conflicts popular. Also, to pursue trust-based strategies in their organisation culture, opportunities are prioritised, improve performance and implementation holistically.

2.3 Managing Change Strategies

In CIPD HR Professional Map (CIPD, 2023), change management is categorised to be core knowledge. This depend on good organisation structure and holistic plans for efficiency. The models include;

ADKAR Model

The importance of the model is informed by change management being implemented by prioritising on different stages. The stages are; Awareness, Desire, Knowledge, Ability, and Reinforcing. The relevance of use of the model is to successfully enhance change process with good leadership and management systems in place. The awareness levels are similarly harnessed amongst the different stakeholders.

For ARB organisation case, by use of ADKAR Model, there is a possibility of identifying different aspects hindering change strategy and success in their facilitation. The disadvantages include failing in prioritising on change process in long-term strategy and implemented in phases. The rationale of this is supported in Paramitha et al. (2020) report which identify awareness and desire for change stages as informing transition from the existing situation with change important to guide all practices. Also, awareness  and capacity of transitioning and reinforcing the process implementation  is instrumental.

Kotter’s 8 Forces Model

According to Trawick and Carraher (2023), the relevance of using this model is for guiding different leadership and management teams to successful adopt change. Also, the relevance of the model is to harness the capacity of guiding how they prioritise on creating urgency in implementing change. For example, in ARB, they can use this model to harness the success in adoption of remote working strategy. The disadvantages of using the model however include potential complexity in the different stages implementation. Further, biasness often occur in the stages of building a strong coalition, vision setting, communication and eliminate all hindrances.

2.4 Change Experience Model

The modern organisations responses to change is significantly in-depth and successfully. As part of organisation change, employees can appropriately respond to increase  how they are committed to their roles. Similarly, successful change embrace is not affected by being hesitant to take an active part in the change process.

An example of the model  is;

Kubler-Ross Change Model

Through the application of  Kubler-Ross Model of Change, it is guided by assumption that change experience can be characterised by 5 different characteristics (Chavan & Bhattacharya, 2022). These are denial, anger, bargaining, depression and accepting change. At the start of implementing change, staff are noted to have a trend to deny change process.

Further, as supported by the model, anger is noted during the change process.  This is evident when there is a sense of entitlement by an employee which negatively  affect the overall job insecurity (Lukianov et al., 2020). In denial phase, employees eventually receive a shock, feeling painful or failing to believe.  An expression of pain for lost opportunities or lack appropriate power to implement their functions. The noted reaction is similarly noted from sabotage of staff strategies and resist change.

Hence, to conclude the application of the change model, the effectiveness of use of the theory include noting entire stakeholders who can be used in successfully reacting to change process. The identified stakeholders in the change process are essential as they are involved in driving change process successfully.

2.5 Wellbeing at  Work

In today highly competitive business sector, implementing a holistic and well-coordinated health and wellbeing strategy has a positive impact to nurture successful employees growth and how they are engaged. Referencing to CIPD Health and Wellbeing initiatives, an improved staff commitment is achieved for a successful implementation of their roles (CIPD, 2023b).

For wellbeing at work, the importance include;

Increased productivity– In the Kotera and Ting (2021) report, the health and wellbeing levels of staff is directly correlated with the scope of performance. For example, in ARB organisation, productivity is achieved by harnessing prioritisation of staff wellbeing. Failing in embracing a successful health and wellbeing initiative lead to being demotivated and low-level commitment hence overall outcome of lowered productivity.

Increase in staff retention– Considering the report published in Yuan and Yicun (2021)), it note health and wellbeing of staff as essential to guarantee employees will to remain for long in an organisation working on their assigned functions. Put differently, failure in implementing a holistic health and wellbeing program, capacity of effective turnover management is hindered.

Factors which impact Staff Wellbeing

COVID-19 Pandemic– Since the time of COVID-19 pandemic, a large number of employees priority has been virtual work strategy or flexible plan. For instance, in ARB case, a major challenge entail differentiating individual employees functions and personal lives. An example of this is professional-based roles and as such issues encountered to implement an increase in health and wellbeing initiatives. Through a focus on the occurrences in COVID-19 pandemic and remote working plan, this impact upto 80% of health and wellbeing programs. Failing in prioritising staff health and wellbeing contribute to increased turnover which influence productivity.

Lack of support by executives/senior management– Considering organisations failing in facilitating or supporting staff financially, emotion-based and mental context directly impact reduction of health and wellbeing initiatives. In ARB for instance, involving the senior management ensure that facilitation is granted to the employees to be in a position of implementing their functions hence an increased health and wellbeing.

Failure to prioritise on staff health and wellbeing lead to increase in the turnover levels. Based on available research findings, the level of performance directly influence their capacities for dominating banking sector market and capitalise on competitive advantage.

3.1 Employee Lifecycle; People Practice Functions

For the employee lifecycle, this is identified to include the different stages which are followed from the start when an organisation develop initial interest with an organisation to the moment the relationship is strengthened. At the end of the relationship, the employees end up leaving their organisation.

The employee lifecycle stages are;

Attraction/recruitment– Being the initial phase of the employee lifecycle followed in an organisation, the best employees are attracted to fill the available job opportunities. According to Al Halbusi et al. (2021), staff attraction, recruitment an eventual selection is achieved through the priority being on the identified practices. The consideration include the strategies implemented in an organisation depending on if their operations are on tight or loose labour market. Therefore, in this case, the best practice is the process implementation as a core knowledge through the use of various sources and areas.

People practice professionals functions is developing an appropriate image identified to be an employer brand (Trawick & Carraher, 2023). With some of the organisations also identified as employer of choice hence high-level qualified staff being engaged which is translated to the organisation active practice.

Induction/Onboarding– At this phase of employees lifecycle, staff are in a position of acclimatising with organisation. The best practice include developing sustainable/futuristic relations which are harnessed in the eventual employee lifecycle stages. In Al Halbusi et al. (2021), in induction, staff achieve a positive initial impression of the organisation with people professionals ensuring their success in their operations.

As part of induction, people professionals roles is ensuring facilitation of a reduced turnover levels and staff presenteeism in their roles. This lead to acquisition of best employer brand and employee value proposition intense. To guarantee success in onboarding approach, they are well placed to pursue performance management practice by successfully conducting an in-depth analysis and good support/guidance.

Development– This represent an essential stage in implementation of employees lifecycle. This is relevant for harnessing a continuous staff engagement for ensuring they are using best skills and knowledge development for implementing assigned functions (Kotera & Ting, 2021).

For the stage, people professionals provide good opportunity to achieve their allocated roles. This is with an appropriate support system initiated for successful continuous learning process. All of them are facilitated and supported to take part in career development process which is essential for success in pursuing their functions. The engaged employees at the end have their ability to be retained in their organisations increased.

Exit/Separation– Taking into account of this phase, it include the employees terminating their relationship with an organisation. It is similarly regarded as offboarding strategy which influence appropriateness of employees relations (Kotera & Ting, 2021). At this stage, the employees termination of their relationship with an organisation could either be positive or negative. This influence how they are committed in their roles after exit from an organisation.

For people practice professionals roles, in this stage, they are mandated with the role of establishing why the employees have left the organisation if it was unplanned. Further, they ensure they identify best practice in avoiding similar occurrences in the future. The motivation and commitment of the employees who are left is enhanced by ensuring that their morale is enhanced.

3.2 People practice connection with organisation and people

Business partnering

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