HRM372 Organisational Development Assignment Sample
The term “Organization development” refers to the key function of an organization which can guide the management for going to unbeatable success. This is a complete guide for an organization on which it can keep a closer look at those concepts which are entirely new for that particular organization. The benefits of organizational development effects on the organizations or nor are also critically explored and analyzed. Two OD models are also applied in this discussion for realizing the performance of OD on behalf of an organization.
Aim of this report is to make a discussion on how organizational development can include value to the organizations when the external environment is moving very fast.
- To identify the organizational behaviour
- To know the effect of the external environment on an organization
2.1 The key trends in the external environment
The term “organization’s external environment” refers to the general environment, which is related to the outside factors, and major influences, which has a deep impact on the operations of an organization. The organizations must react to the disorder of these external environments to maintain the flow of their operations. The external environment has a deep impact on the business of an organization. In this part, the trends of the modern external environment are discussed with the help of PESTLE analysis (Fjeldstad and Snow 2018). Some external forces can affect the business of an organization.
An organization must have to maintain its business as it can get the most profit with less investment. The business will flourish if it gets a friendly competitive environment. This point is not included within PESTLE analysis but the competitive advantages can affect all other trends in the external environment of an organization. The competition depends on new technology development, foreign market openings, and the increased rate of customers’ desire. Competition is very needed for an organization as it can provide a chance to measure the ability of this particular organization and its power of stability in the market. The competition may come from local or global competitors and an organization should be ready to tackle all the situations by improving the delivery system, decreasing the prices, and announcing exclusive offers. Online order system, payment method, time-to-time delivery, and professional customer care services are needed to control the competitive environment (Lai 2017).
Figure 1: parts of the external environment
(Source: Ctp.org, 2020).
In the field of every business, technological support must be needed for development. In the PESTLE analysis, the technological environment is one of the most important options, which is used by a successful organization to reach consumers, produce its products, and give all the mandatory services. The term “technology” primarily refers to modern gadgets like “computers”, “telecommunications”, and the “Internet Connections”. Every corner of the modern world is closely connected through the internet and that helps an organization to establish e-commerce business and online sales. A modern technological environment in the UK is named TechUK, which is used by the organization to know the response of the people on a particular product (Montero et al. 2019).
“The social environment of Business” is based on the “values”,” attitudes”, “belief”, “wants” and “desire” of the consumers. The population of America is divided by “gender”, “age”, “ethnicity”, “location”, “occupation”, “education”, “and income”. This division is used for knowing the trends of their purchase, online activity, internet access, and so on. The records are carefully delivered to the organizations and the productivity depends on it. The environment of society has the power to bring the forces as “Corporate Social Responsibility” which means the consumers are constantly demanding that particular businesses support the charitable and contributing activity of the welfare of the society. Organizational development can work positively if the consumers and society behave as responsible outsources.
The business of an organization will transcend the country’s barrier as the business can be spread throughout the world by using the internet. From the perspective of business, the world is getting smaller. Most of the countries have already announced:” Free Trade” which means any company of any country can set up their business across international borders (Odor 2018).
Figure 2: Global environment
(Source: Stewart and Gapp 2017)
For example, a car, which is made by a Japanese company, can be easily sold in the US market. The electronic gadgets of China have been trading in the market of India, America, Mexico, Canada, and so many other countries. The price of these gadgets is cheaper than other countries and that is why the customers are easily attracted. Therefore, the global environment is very important for the development of the business of an organization (Kareem 2019).
The “political environment is mainly based on the role of Government and the active politicians for developing the business on a global scale. This environment includes the policies of taxes that an organization must have to pay to the government of the country in which it is going to set business. The government has some rules and regulations, which a company must have to maintain as the restrictions and tariffs. The government has great, innovative, and supportive ideas for the development of a business that must be needed by the organizations. The stability of this government can affect business development. Premix is a Mexican company that must have to know the rules and regulations with the political support of America if it wants to seat its business in this land (Taherdoost 2018).
- The strategy makers need to analyse the environment structure where the organization is trying to expand their business.
- The strategy makers of the organization always find that they can easily get the supplied products in their site to perform a project.
- According to Ivanova and Kokina (2016), after that giant organization is always trying to expand their business, so to open their outlets in the new market they must maintain their environmental laws in the countries.
- According to Janicijevic (2017), along with that, the planners are keeping an eye about type of population and how dense it is, to enhance their business.
- According to Husted (2020), many organizations are trying to adopt some alternative sources of energy in their organization so minimize the use of the natural sources.
As the organization can adopt some necessary steps to improve the environment, it will help them and towards the people to sustain their lives (Stewart and Gapp, 2017).
- In a country, there are many laws maintained by the organization like the Factories Act, Contract Act, Company law and much more.
- According to Mishra (2017), any organization needs to maintain these laws to introduce their business into the new market.
- The business laws help an organization to protect their companies and towards their customers from doing any unfair business practices.
- Apart from that, business laws also help to protect society at a large extent. According to Gandhi, M. and Sachdeva (2018), the law is also associated with the merger, industry regulation, and maintaining the condition of the employees influences the strategy of the firm from making any important decision.
Globalization has a significant impact on legal trends. According to Yogamalar and Samuel (2016), along with it, the business managers need to have the requisite knowledge about the business enterprises, so that they can produce some effective decisions.
2.2. OD models used within an organization for OD activity
The OD models are very useful for an organization to guide all employees by displaying the “official reporting relationship” which has the potential to govern the company’s workflow. Every company or organization has a formal outline structure which makes it easier for grabbing the new position. In the following discussion, there are three models of organizational development that can affect the business of an organization.
2.2.1 “Greiner’s Sequential Model”
According to the American organizational professionals, Larry Greiner, the development of an organization can take place with is a model that is called the “Grenier Growth model. In the year 1972, the five phases of this model were published, and very soon it became very popular for the strategic management of an organization. Unilever is a “British multinational consumer goods company’ which also utilized this model for developing its global business. The company was faced with some business crises and the management overcame this by utilizing Greiner’s Growth model (Dombrowski et al. 2019).
Figure 3: “Greiner’s Sequential Model”
(Source: Felipe et al. 2017)
In the year 2019, the pandemic situation arouses COVID 19, and that affects the management and production of the Unilever Company. Due to Lockdown most of the workers and employees cannot join the factories and that affects the production. In this situation, the communication between the management and the employees must be maintained by a strong leader. The most important crisis of growth according to the GE model is that a particular leader could not control the whole business. Unilever was released from this leadership problem by giving proper training and new appointments.
- Autonomy Crisis:
In that pandemic situation, the founder and the leaders of Unilever decided to stop the production as per the financial condition. The management was so efficient on their duty that they have decided to continue their production with limited workers. In this way, organizational development was continued (Saleem et al. 2020).
- Control crisis:
Some so many managers were trying to control the situations without any collaboration with each other. The motive of every team was the same but they forgot how to work united. The solution came when the management arranged virtual meetings with the production leaders, suppliers, stakeholders, and shareholders.
- Red Tape Crisis:
This problem is the oldest in Unilever because the organization is very big and its business structure is very complicated. In this organization, so many officers and leaders are behaving rudely to the lower employees. Another problem is notified that the urgent decisions are taken very slowly and the external changes are missing in the new decision.
- Growth crisis:
The situation caused by COVID 19 affected the business planning of Unilever. The growth and development of the business became slowed, as the management could not take the appropriate ideas. This situation was successfully solved by the management by arranging virtual meetings several times and applying modern business models (Kareem, 2019).
2.2.2 “Leavitt’s System Model”
In 1960, a famous American professor named Harold J Leavitt published a model which can explain the major organizational changes for the development. This model has the main four components as “structure,” “Task”, “Technology”, and “people”. These four points are very closely interconnected with each other and have a huge responsibility for the development of an organization like Unilever.
The main foundation of an organization is its Structure. Unilever has recently faced many problems with the staff, stakeholders and shareholders, departments, and suppliers due to the COVIOD 19 pandemic. The performance of the employees of Unilever was decreased in that time of productivity was going to be very low. The stakeholders and shareholders realized the situation and kept their trust in the management of Unilever that it would take some suitable decisions.
The tasks are the activities, which were allocated by Unilever to its employees. In the critical financial crisis in this company, all the employees helped by doing extra work and submitting the task before the deadline. That would help the management to overcome this critical situation and the OD models are successfully implemented.
As per the Diamond OD model of Leavitt, an organization will be successful if it has respectable manpower. The term “people ” reflects that the employees, labourers, factory workers, the targeted customers. Employees are the most important part of a successful organization like Unilever. In the time of financial and contractual crisis in Unilever, the employees proved their loyalty and respect to the company by doing hard work without extra payment. Therefore, the strong influence of people can help an organization for any kind of development (Ctp.org, 2020).
- e) Technology:
Organizational development will not be properly completed if the technologies are not used or proper modern technology. Unilever is an international company and all the modern technologies are used from offices to factories. The cost of the maintenance of modern technologies as “computer”, “machines to cellular phones’ ‘, and various software became a little high during COVID 19 pandemic.
2.2.3. Kurt Lewin’s Model:
This model represents an extreme and efficient understanding of the changing process in the internal construction of an organization. The changes are urgently needed for organizational development because these three steps are successfully utilized by many famous companies like Unilever. This company utilized this model to realize the behaviour of marker, new technologies, and its employees. This model is widely used by most of the organization in the UK before using any other change method (Mishra 2017).
And the organization has to be concentrated on production and market behaviour. The critical situation can stop the captivity of an organization anytime and the management has to resume it by applying this method. The management of Unilever investigated the source of the problems with a proper realization of the present situation. The former behaviour, the thinking process used before the crisis, the organizational structure, and people behaviour are analyzed for taking new decisions for unfreezing the flows of development. Communication systems between the employees and the management of Unilever were reconstructed for conducting organizational development (Janicijevic 2017).
- c) Changing:
The systems, which are unfrozen by the organization, can move with a changing ability and quality. The whole system has appeared in a new form and the timings of their performance have behaved very efficiently for organizational development. During this changing method, people can learn the changing behaviour, process, and new constructive way of thinking.
Lewin has very finely described the new model of organizational behaviour by providing the point named “refreezing”. In this step, the act of “reinforcing
2.3 Critically explore how value is added by such activity
The Organizational Values is defined as a process to describe the ethics or principles which the organization needs to follow their basic rules to maintain their customer satisfaction. Along with that, the organization motivates its employees to work hard and maintain their principles so that it will improve the ethics of the organization towards its customers. Many organizational values were found to be maintained by many giant organizations such as listed below-
- Integrity– Integrity is the process of being honest, maintaining the demands and words towards the customers by their organization. The leaders from the giant organizations maintain the process of Integrity to maintain any critical situation for Coca Cola, Tesco, Jaguar and other companies. It was found that the Coca Cola organization always tries to guide their employees to maintain the values of the organization (Coca-colacompany.com, 2020). Along with it makes it user friendly for food safety, so that people from different countries across the world can easily consume their product. The other organizations such as Jaguar also believe that to run their business they should follow the path of honesty, fair and transparent process towards their customers to maintain the organizational values (Jaguar. gi, 2020).
- Commitment towards the customers– The giant’s organizations must always meet the demands and satisfy their customers for their progress in the market. Tesco, Jaguar, Coca-Cola all are trying to provide their best in their respective fields to maintain their customer satisfaction. Jaguar always wants to retain their luxury cars towards the high profile persons with their designer looks and modern technologies (Jaguar. gi, 2020). According to Stewart and Gapp (2017), they have mainly built their cars for the people from the high class, as it is not easy to maintain for a middle-class family. Despite that, they built their models with full efficiency to attract their customers and maintain their satisfaction. Tesco has adopted these values in their business to understand the needs of their customers and act accordingly (Ctp.org, 2020).
- Diversity-The main prospect of diversity helps to understand that every individual is unique so his or her taste of comfort will not be of the same kind. The giant organizations are considering this fact to expand their business in different parts of the country. Coca-Cola, Unilever, Jaguar are producing their strategies so that many people across the world can use their product and increase their brand image. Coca-Cola has expanded its business in different parts across the world, and they determine diversity as the core values adopting the global diversity mission (Coca-Colacompany.com, 2020). The organization is taking the feedback from their employees through surveys; along with that, diversity education is provided towards them to solve any issue easily. Jaguar organization provides respect, humanity and compassion towards their customers across all over the world (Jaguar. gi, 2020). They provide an effort to deal with the diverse nature of the people as these people will help them to increase the margin of profit.
- Accountability-Accountability is the process by which an organization can take the entire responsibility for performing a project, or they were supposed to do in future. It was found that if any product becomes a failure, then the organization takes the entire responsibility towards themselves. Tesco, Jaguar, Coca-Cola are also maintaining their accountability to perform any task. Jaguar is famous for building luxury cars and always made themselves responsible, these organizations are working in a diverse community, place and the country. The main aim of the organization is to provide benefits towards the employees to work in their organization (Jaguar. gi, 2020). The organizations such as Tesco made themselves forward to reduce the wastage of the food globally and supply these foods towards the people that need them the most (Ctp.org, 2020). Unilever made themselves odd from other organizations as they have taken a positive approach to developing themselves regularly (Unilever.com, 2020). Along with that, the organization involves its suppliers and business partners to take any kind of important decisions. Due to this strategy, the organization maintained a good relationship with its partners and made themselves away from facing a huge loss in their shares.
- Teamwork-Teamwork is an important aspect of the organizational values, and all the organizations try to make their team efficient to produce an effective product within a specified time. It was found that it is an important task to build a strong team removing the social barriers among them so that they can perform in a suitable environment. Jaguar, Coca-Cola, Unilever and many other giant organizations are trying to motivate their teams regularly to produce quality products from their teams. The organization Unilever has stated that they want to work with the suppliers, distributors and other business partners having similar values as that of the organization (Unilever.com, 2020). They have suggested that if the responsible sourcing policy and the business partner policy will match with their partners, they can perform a suitable business together. The main aim of the organization is to perform a successful business by maintaining the long and short-term interest and maintaining teamwork for organizational development.
- On the other hand, in the automobile industry, Jaguar believed that success is gathered by maintaining building relationships with their employees, partners and effective teamwork (Jaguar. gi, 2020). Tesco has also agreed that they would maintain teamwork; it becomes easy for them to complete their task (Ctp.org, 2020). It is also suggested that to build effective teamwork, they need to trust each other, share their knowledge and experiences to provide some idea towards their teammates.
- Innovation and quality: Due to the advancement of technology, the giant organizations are taking the full use of it, improving their product’s quality, and marketing strategies. According to Saleem et al.(2020), all the organizations that are mentioned are using technology to improve their marketing strategy, quality of their product and producing large quantities of their product within a small interval of time. Jaguar is trying to introduce some modern equipment in their models to improve the safety of its customers (Jaguar. gi, 2020). Tesco also introduced mobile payments, automated online shopping, cashless stores towards their customers to use the digital platform for their transactions (Ctp.org, 2020).
This report is prepared on the topic of organizational development in which the different directions about the external trends are mentioned. For discussing the external trends of the organization, a PESTEL analysis was prepared so that it can justify the topic. In the next step, some theories were discussed, which helps to understand for the reader that there are great advantages of obtaining these theories to develop their organization. An organization needs to develop its organization by maintaining some values so that an effective relationship is built among the suppliers, distributors and customers. The organizational values have many directions; it was found that the main aim of the companies is to perform their task with integrity and honesty. Due to this, a bridge can be maintained with its customers and the organization. In the last stage, some recommendations were prepared to evaluate the organizational development and improve their integrity, teamwork and relation with their customers.
The giant organizations are adopting the facts of organizational development to improve their strategies and customer relation. Some recommendation is provided towards them to improve their decisions-
- Improve continuously– The organization needs to improve its strategies regularly according to the situation of the market so that they can cope up with the tough situations easily and effectively. According to Felipe et al.(2017), the giant organizations are looking forward to their progress, so they always need some alternative plan to retain in the market. It is important to improve them regularly, as it is a proactive approach, which helps to improve the internal and external trends of the organization. The organization can improve their strategies through this process, maintain their quality of product, and attract new customers towards their organization.
- Communication process must be enriched– The organizational development has helped to increase the communication among the employees, customers and the feedback process, which helps to form an effective workplace. The main aim of improving communication is to provide their employees with a clear knowledge about the aim and objective of the organization. According to Dombrowski et al.(2019), along with this if the employee can share their knowledge and skills towards the other employee, they can also learn from their seniors. The organization can run effectively if the relation between the employees can be improved, and minimizing the barriers can produce a quality product from them.
- Development of its employees-The organization should focus on the development of their employees so that with their development it will help the organization to produce efficient work from them. Due to the advancement of technology, the employees need to adopt those changes quickly so that they can make some effective strategies for the organization. According to Binder (2016), it is important to focus on their employee development and motivates them to adopt the changes and evolve according to the requirement of the market. The organizations can take some necessary steps like providing them with some training to improve their skills.
- Enhancement of services and products– One of the important benefits of organizational development is to enhance the products and services through innovations. It was found that many organizations are adopting the technology for their development to increase their margin of profit. According to Kareem (2019), it can be recommended that innovation not only come by adopting modern technologies but also through their employee development. Due to this process of evaluating the employee’s helps to boost their motivation to achieve success, this will lead to increased creativity and innovation skills.
- Increasing the margin of profit– The organizations are always, trying to increase their margin of profit, this can only be accomplished through innovation and productivity. According to Stewart and Gapp (2017), due to this, the costs will also decrease along with it, and the quality and employee satisfaction will increase.
Binder, C., 2016. Integrating organizational-cultural values with performance management. Journal of Organizational Behavior Management, 36(2-3), pp.185-201.
Coca-Colacompany.com, 2020, Code of Business Conduct . Accessed from:https://www.coca-colacompany.com/policies-and-practices/code-of-business-conduct [Accessed on: 28th November, 2020].
Ctp.org, 2020, Tesco Values.. Accessed from: https://www.ctp.org.uk/job-finding/directory/tesco-/about/values [Accessed on: 28th November, 2020].
Dombrowski, M., Dombrowski, Z., Sachenko, A. and Sachenko, O., 2019. Method of decision-making the proactive project management of organizational development. Mathematical Modeling and Computing, 1 (6), 2019, (1), pp.14-20.
Felipe, C.M., Roldán, J.L. and Leal-Rodríguez, A.L., 2017. Impact of organizational culture values on organizational agility. Sustainability, 9(12), p.2354.
Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and organization design. Long Range Planning, 51(1), pp.32-39.
Gandhi, M. and Sachdeva, T., 2018. Impact of diverse values of employees on organizational effectiveness. Amity Business Journal, 7(11), pp.11-17.
Husted, E., 2020. ‘Some have ideologies, we have values’: the relationship between organizational values and commitment in a political party. Culture and Organization, 26(3), pp.175-195.
Ivanova, M. and Kokina, I., 2016. THE ANALYSIS OF ORGANIZATIONAL CULTURE VALUES IN PUBLIC SECTORS IN LATVIA. Review of Innovation and Competitiveness: A Journal of Economic and Social Research, 2(4), pp.19-36.
Jaguar.gi, 2020, OUR VALUES. Accessed from:https://www.jaguar.gi/about-jaguar/jaguar-business/corporate-values.html [Accessed on: 28th November, 2020].
Janicijevic, N., 2017. Contradictory values in the process of organizational change: A case study. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 22(2), pp.29-36.
Kareem, M.A., 2019. The Impact of Human Resource Development on Organizational Effectiveness: An Empirical Study. Management Dynamics in the Knowledge Economy, 7(1), pp.29-50.
Lai, P.C., 2017. The literature review of technology adoption models and theories for the novelty technology. JISTEM-Journal of Information Systems and Technology Management, 14(1), pp.21-38.
Mishra, P., 2017. Green human resource management: A framework for sustainable organizational development in an emerging economy. International Journal of Organizational Analysis, 25(5), pp.762-788.
Montero, L., Ros-Roca, X., Herranz, R. and Barceló, J., 2019. Fusing mobile phone data with other data sources to generate input OD matrices for transport models. Transportation research procedia, 37, pp.417-424.
Odor, H.O., 2018. Organisational Change and Development. European Journal of Business Management, 10(7), pp.58-66.
Saleem, F., Salim, N., Altalhi, A.H., Ullah, Z., AL-Malaise AL-Ghamdi, A. and Mahmood Khan, Z., 2020. Assessing the effects of information and communication technologies on organizational development: business values perspectives. Information Technology for Development, 26(1), pp.54-88.
Stewart, H. and Gapp, R., 2017. The role of organizational development in understanding leadership to achieve sustainability practices in small to medium enterprises. Organization Development Journal, 35(2), pp.33-57.
Taherdoost, H., 2018. A review of technology acceptance and adoption models and theories. Procedia manufacturing, 22, pp.960-967.
Unilever.com, 2020, Our values & principles. Accessed from: https://www.unilever.com/about/who-we-are/our-values-and-principles/#:~:text=Our%20four%20core%20values%20are,actions%20they%20take%20every%20day. [Accessed on: 28th November, 2020].
Yogamalar, I. and Samuel, A.A., 2016. Shared values and organizational citizenship behavior of generational cohorts: A review and future directions. Management: journal of contemporary management issues, 21(2), pp.249-271.