CIPD 7LD01 Organisational design and development

CIPD 7LD01 Organisation design and development

Organisational design is seen as creating a structural template to align a pool of resources to achieve common goals. When creating a structural template, we understand that it aligns various resources. But what do I mean by resources? They include tangible and intangible elements such as people, skills, tools, and the organisation’s vision.

Then, we see organisational design as rearranging systems to fit current business reality and goals and then developing plans to implement the new changes. So, what do I mean by rearranging? This means that there must be an organisational design, not necessarily a new one; there may be an existing design or structure that we need to rearrange.

This second definition speaks to an existing organisation that we need to disrupt and reorganise to fit current business realities.

The third definition gives us insight into organisational design as architecture. This outlines the organisational structure or operating framework that guides how the company will achieve its stated values and goals. What do I mean by that? An organisation’s philosophy statement comprises the vision, mission, and core values.

These three definitions still speak to one particular concept: structure. When we think of design, the major content we look at is structure. A template is structured. Workflow is still structural. A framework is structural. Architecture is structural. These are just synonyms repeated.

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Key elements of organisational design

When talking about structure, we are looking at the organisation’s size. What is the organogram? What is the organogram speaking to? How does it look? Is it a small business, a medium business, or a big organisation? Whatever the case, when dealing with organisational structure, the first thing to consider is structural size.

Some structures are affiliated with external environments, such as when shareholders buy into the business or when international organisations finance the business. That is another structure entirely. If an organisational design is going to be that way, we should always consider the size of the business.

Chain of Command

The chain of command refers to the reporting line, from the HR officer to HR associates, from HR associates to HR team leads, from HR team leads to HR managers, and so on, up to the HR director and the managing director (MD) or CEO. In every organisation, there is always a reporting structure. It begins with the line manager and continues throughout the organisation.

When we see a group of people with a clear chain of command, how information flows, and how reports should be submitted, we speak about an organisation with a structured design.

Span of Control

The span of control is the number of subordinates a manager or supervisor oversees.

When you see an organisation where a manager is responsible for one or two employees or a supervisor oversees a small group, it speaks to a certain design. Even if it is not well-structured, it shows that a structure exists.

Work Specialization

Work specialisation means that in every organisation, there are experts with specialised knowledge and skills.

For example, some HR professionals specialise in recruitment, while others focus on performance management. When these specialisations are clearly defined within an organisation, structure and design are in place.

Departmentalisation

Departmentalisation refers to the categorisation of people based on their roles and expertise. People with similar skills are grouped from entry-level to mastery level.

For example, there may be HR interns, officers, and directors in an HR department, but they all share a common HR skill set.

When people work together to achieve a common goal in an organisation, they are often departmentalised and placed into groups or categories to enhance performance.

Authority and Responsibility

When a task is delegated, how committed is the person receiving the task? How committed is the person delegating the task to ensure its success? Even though the task is delegated, the person who assigns it remains accountable for its success.

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Let us move on to organisational development.

I see organisational development as optimising resources to achieve a common goal. When I talk about resources, human and non-human, fixed assets, current assets, inventory, anything you call it, provided it is under the organisation to achieve a common goal, it is still resources.

So, let us see the elements of organisational development.

Elements

When we mention an organisation, we are speaking to people. When we mention people during organisational development, we describe the competencies, skills, capabilities, knowledge base, and expertise of the people working in the organisation.

Another element is climate. When discussing climate here, we are not referring to geographical weather. We are talking about an organisation’s mood or unique personality, which includes attitudes and beliefs that influence members, employees’ experiences, and collective behaviour. What is influencing the organisation? What is the atmosphere like? What is driving people to perform? What is the mood? What is the tone of the organisation? The tone determines the climate of the organisation.

Relationship Between Design and Development

If these two are combined, what will happen in an organisation?

We have a high return on investment. Then, we have a higher employer value proposition. Employee engagement will come into place. Ownership: everybody will have this sense of ownership, process ownership. “Oh, this is my job,” without being casual about whether the line manager is watching. Everybody is taking ownership of their position and acting appropriately. Everybody is committed to their responsibilities.

Then, inclusion. For instance, when I mentioned knowledge management, if you manage knowledge well, you can promote inclusion in an organisation because every member will feel included. When and how do we promote inclusion? Through our staff forum, staff-forward meetings, village meetings, etc.

This promotes inclusion. When you see village meetings and staff members, all these singular acts are developmental plans to sustain the organisation’s structure and design. Then, there is acculturation, which adapts to the company’s core values and norms.

Then, innovation. If we combine design and development, we will have many new ideas. The competency level will be enlarged, and the company will have a competitive edge compared to its competitors. If we combine design efficiency with development effectiveness, we have efficacy.

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Organisational design and development

So, I have summarised this process into six easy steps. When we think of organisational design and development, it should not seem like a big word. It is just a simple step, but the only thing is that we need to have a solid structure. As I have said, you must have an existing one before disrupting a particular structure. That structure consists of the people who will help promote it.

So, let us see how it goes in the six steps to ODD.

The first we have is an organisation. I have represented the organisation as a rubric. So, the first is the organisation, an existing structure, as I have mentioned. Under the existing structure, what comes first is the vision. An organisation’s vision and strategies might exist before we introduce this ODD. Still, we must look at the reality of current business to see what is happening.

Then, after vision, what is next? Organisational design.

After design, knowledge management.

Then, after knowledge management, we have performance management.

Followed by documents and structured documentation.

Then, we now have to learn and develop.

As HR departments, why do we need to think, plan, act, and grow to continue our organisational design and development? Because whether we like it or not, some organisations were here yesterday, and they will not be here tomorrow because the competition is fierce.

So you must keep thinking, planning, acting, and growing to stay in the business. If not, if you fail to carry out these four simple plans, then we might push our business out of the market. Therefore, taking the CIPD 7LD01 Organisation Designs and Development course is important.

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Therefore, you may need our CIPD Assignment Help to identify the key theories and concepts that shape organisational creation and development, understand various organisational design structures and their alignment with business goals, and analyse change management approaches to ensure successful implementation.