Value and Contribution to Organisational Success

TASK 1

P1 Importance of organisational design theory

Organisational design is a sequential process in which the dysfunctional aspects of work flow, procedures, structures and systems are identified which are then realigned with organisational goals and then plans are developed so that new changes can be implemented. This process is followed is so that improvement can be brought in employee performance and also to involve innovations in company. This helps the company in achieving better customer satisfaction, employee performance and competitive edge in market.

Organisational design theory: This theory helps organisations in structuring the company's hierarchy so that the relationship between organisation and and its members can be designed within a set of defined rules and procedures (Chiappetta Jabbour, Mauricio and Jabbour, 2017). This theory helps in building the relation of staff members with company so that they can work together in a proper manner in order to achieve company goals. It also help in determining the level of employee engagement in company which defines the level of motivation among workers and their enthusiasm to increase their value and contribution towards the company success. In ARM about 2,050 employees work across its 30 sites in 15 countries who are highly involved in company procedures and the HR of company focus on employee development, training and reward system so that high innovations are brought in company.

Importance of organisational design theory in context of organisational structure and fulfilling organisational strategy:

Good organisational structure helps to improve communication, increase productivity and performance of employees which help in increasing innovation in company. It also help in building an effective workplace where employees can use their full potential to achieve company objectives efficiently. It is important that the organisation is designed in such a manner so that better relations are build among staff members and managers of company so that employee performance can improve which help in making better decisions. It also help in improving the quality of work so that higher proactivity of company can be achieved (Chinyamurindi, 2016).

Organisational strategy is the plan which is formulated by company so that it can be executed by taking appropriate actions and making decisions which can help in achieving company goals in an efficient manner. The organisational design determines the manner in which decisions are made in company so that company goals are achieved. Following are the different organisational design theory which can be applied in ARM holding so that organisational structure can be formed in a way which can help in fulfilling organisational strategy:

• Traditional organisational theory: Under this theory the structure of organisation is hierarchical where the power flows vertically and upward and employees get instructions from leaders. All the employees follow a chain of command which means that employees are not involved in decision-making and have to follow instructions which are given to them. This theory is followed in Aston Martin, Jaguar etc. where only one person is responsible to take decisions.
• Open system theory: Under this theory the organisation is designed in such a manner that an open system is applied in company where employees are free to approach managers in relation to issues or ideas. This help in free flow of information and ideas in company which is important to bring innovations in company. This theory is followed in many companies like Starbucks, ARM holdings where employees are free to involve in decision-making. Employee engagement is high in this structure which help the company in implementation of organisational strategy in an efficient manner which help them in becoming highly competitive in market (Herbel, Rocchigiani and Ferrier, 2015).

M1 Appropriate theories and concepts to critically evaluate importance of organisational design

There can be various theories and concepts which can be applied so as to decide the organisational design for company which can help in achieving company objectives. These theories must be applied in such a manner that organisational design with organisational strategy so that goals can b achieved efficiently. ARM uses open system theory where workers are allowed to openly share their ideas and opinions and get involved in company decisions which help in achieving company goals in an efficient manner.

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TASK 2

P2 Approaches and techniques used by HRM

For companies which depend on employees for their skills, talents and knowledge so that innovation in their processes, products or services can be brought it is important that the HRM of company apply various approaches and techniques. This can help in attracting, maintaining, developing and rewarding employees in such a manner that high motivation can be created in company which help in building a skilled and dedicated workforce. HR plays an important role in maintaining the workers of company and establishing their relation with managers and organisation so that they can help in achieving company goals efficiently. Following are the approaches which are applied in ARM holdings plc so that employee knowledge can help in bringing innovation in company:

• Motivation: Motivation is an important function of HRM which help in ensuring that the employees are encouraged to use their complete potential, skills and talents in achieving company goals. It also help in creating a healthy and friendlily workplace where employees are motivated to come up with innovative ideas freely so that they can achieve company goals efficiently. The HR of ARM holdings ensure that employees of company are highly respected and involved in decision-making and follow a can-do approach towards solving problems which help in motivating employees (Hernaus, Vuksic and Å temberger, 2016).
• Employee engagement: It is the extent to which employees feel passionate about their jobs, committed towards organisation and also put their efforts so that company goals are efficiently achieved. This also means that extent to which employees are involved in decision-making so that job satisfaction among employees can be increased along with increasing their confidence as their ideas and opinions are valued in company. ARM holdings ensure that high employee engagement exists in company so that high value and contribution of employees can be achieved in company.
• Developing people: It is important that the employees of company are developed and trained in such a manner that they all can develop same level of skills and talents which help in achieving company objectives. ARM holdings hold one-to-one meetings, gives reviews and feedbacks on employee performance etc. so that employees can be continually developed and their performance can be improved which is important in achieving their personal and professional development.
• Performance appraisal: It is related with paying employees based on their performance so that a healthy competition can be created in company which help them in using the best of their knowledge and potential in contributing towards company success. ARM holdings motivate employees to perform better by rewarding well performing employees so that they can increase their hard work (Ihuah, 2014).
• Teamwork: It is important that teamwork is encouraged in company so that knowledge and information can be easily shared among members which help in bringing collaboration and integration among team members thus creating a friendly working environment. This helps in enhancing innovation in ARM holdings plc which help it in gaining a competitive edge in market.
• Talent management: ARM takes 'self betterment' approach so that employees can develop new skills and talents which can help them to improve their self esteem and use their potential in achieving company goals. This also help in retaining employees in company so that talent pool can be created in company and high competitive advantage can be gained in market (Kirchberger and Pohl, 2016).

M2 Critically analyse different approaches to motivate human capital and knowledge management

Various approaches and techniques can be applied by company so tat the employees of company can be managed efficiently and also improve their motivation to use their skills in achieving company goals. These approaches also help in using knowledge of employees effectively and directing it towards achievement of company goals. ARM uses various approaches so that it can retain, develop and manage the talented workforce of company so that a competitive advantage can be gained in market.

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TASK 3

P3 Research and knowledge for emerging HR developments

The organisations use many technologies so that human resources of company can be developed which can help in gaining a competitive edge in market and utilise their complete potential in achieving company goals. It also help in coordinating and collaborating the work of employees in company so that diverse workforce can work efficiently work together and company goals are achieved on time. These developments must be involved in company so that employee performance and learning can be enhanced which will increase innovation in company so that it can survive in market. In the contemporary era where employees are given high importance in company following are certain HR developments which help in increasing their work efficiency:

• Employee engagement: Employees are being highly involved in decision-making which help the company in making efficient decisions as the ideas and views of employees are also considered. This also help in motivating employees in giving their best efforts in achieving company goals as their ideas and opinions are valued by managers. This boost their confidence and their trust in company increase which also help in bringing innovation in company and the productivity increase.
• Talent management: It is related with managing talent in company which help in retaining, developing, rewarding, hiring and recruiting employees so that a pool of highly talented and skilled employees can be maintained. This help the companies in building a workforce which can be used in an efficient manner so that long-term goals of company are achieved. It is important that talent management is aligned with company strategy so that they can function in an efficient manner (North and Kumta, 2018).
• Technological innovation: It is important that the employees of company are adapted with technological advancements so that new technology can be used in operations and functions which can help in increasing their quality of work. Technology also help in enhancing employee performance and the work can be completed in a cost and time efficient manner which can help company in being highly competitive in market. With the use of technology new ideas can also emerge which can be applied in company so as to increase customer satisfaction and increase its sales in market.
• Use of feedback tool: The use of feedbacks is also a development in HR which help the company in giving reviews about their performance so that the areas which lack in efficiency can be improved. This help in improving the overall efficiency and performance of employees and they can become better in their work which increases their productivity (Rane, Sunnapwar and Rane, 2016).
• Extensive use of data analytics: It is the use of data of customers so that their changing behaviour, likes and preferences can be monitored. This can help in determining the changes which needs to be brought in company's products and services so that high customer satisfaction can be achieved. ARM use the data of their customers so that customers can be highly satisfied which results in high level of innovation in company. This help in improving the level of performance of workers along with increase in company profits in market.

M3 Evaluation of how HR developments affect role of HR function in future

With the developments in HR it is important that the functions of HR are also changed so that employees of company can be efficiently managed and can be used in achieving company goals. Employee engagement will affect HR function as democratic leadership style will be used in company. Performance appraisals will mean that the HR will have to continually motivate employees to perform better. This way the HR developments will affect HR functions in future.

TASK 4

P4 Evaluation of how organisational design respond and adapt to change management

Change management is a structured approach which is used in organisations when they introduce change in their current working practices so that the people of company can be prepared, supported and helped in adapting change in an efficient manner. Change is an important concept which is applied in every organisation so that changing government policies, competitive pressure, changing customer needs and wants etc. can be efficiently fulfilled. Change also help in improving the organisational performance and adapting to changing business environment so that company can survive in market and its sustainability increase which help in increasing customer satisfaction. In ARM holdings changes are brought in company frequently as the company develops software and with the increase in technological advancements the software also have to be developed and changed. Following are the situations where company implements change in company:

• Transformational change: This change is related to altering the current operational structure of company where changes are brought in processes, people and technology used in company. This change is implemented in the complete organisation over a period of time which also lead to the alteration of organisational culture and its internal processes. These changes help companies in altering the way in which they perform and function in market and helps them in gaining a competitive advantage in market by introducing goods and services which help in satisfying customer's dynamic needs and wants. ARM holdings introduce this change when a new technology is to be applied in company which can help in developing innovative software so that technological advancement be used to satisfy customer demands (Scott, DeLone and Golden, 2016).
• Psychological change: It is related with changes which are to be brought in the current working of employees so that their performance can be improved and they can become more efficient in their work. It is important that the workers are encouraged so that they can adapt change in their traditional working methods so that the effectiveness of organisation in achieving its objectives can increase. The managers of ARM encourage the company workers to accept changes positively by including them in decision-making and also giving them training and development so that the change can be efficiently implemented in company.

These are the changes which can be implemented in company so change in market conditions do not have negative impact on the company operations and functions. These changes help in increasing company productivity and adopting technological advancements in company so that efficiency of company can be improved. It also help in enhancing the productivity and performance of workers so tat company can become cost and time efficient and provide goods and services which can help in increasing its sales (Sroufe, 2017).

M4 Evaluation of changes which can affect organisational design

There are various changes which are brought in company that impacts the organisational design so that the relations of manager and workers can be managed which can help in achieving company goals on time. Transformational and psychological changes both affect the relations of members with company which affect the way in which company will achieve its goals. Thus it is important that these changes are efficiently implemented which can help workers in adapting to change so that objectives of change can be achieved.

RECOMMENDATIONS

From the above discussion it can be seen that employees of company play an important role in its success and must be included in making decisions so that their value and contribution in company can increase. Following are some recommendations which can be followed by ARM to increase value and contribution of employees in company:

• Increase group activities ion company so that all employees can work together which help in increasing new and innovative ideas.
• Training and development programmes must increase in company so that all the employees can be equally trained and developed and can acquire skills.
• Frequent bonuses and rewards so as to boost the morale of workers which improve their performance.

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CONCLUSION

From this report it can be concluded that human resources play an important role in adding value and contributing towards organisational success. It is thus important that the HR of company use approaches which can help in improving their productivity and performance. Organisational design also play an important role in improving employee performance so that company goals are achieved. Change can be effectively implemented in company by involving employees so that they can adapt top changes in company easily.