(Solution) Assessment ID / CIPD_5CO01_26_01 5CO01 Organisational performance and culture in practice
Solution
Answer to Questions
1.1 Advantages and disadvantages of divisional structure and matrix structure in Ariton; Appropriateness
Divisional Organisational Structure
This a simple structure without many levels/layers of reporting. According to CIPD (2025), it is an open-based structure with opportunity for management communicating directly with staff.
Advantages and Disadvantages
For advantages, in the case of Artiron Motors, with approximately 50,000 employees, the structure best works in organisation with large number of workforce (Bhatt & Gargeb, 2025). With this number, using the structure enhanced inclusion of employees regularly in scheduled meetings and direct conversations hence increasing employees feeling appreciated. Also, as identified in People Management (2020), in the structure, recruitment of employees was informed by their behaviours apart from only how qualified they were hence improved commitment.
For disadvantages, with a direct reporting being to different managers in 5 European countries; US and Canada, this imply the process followed to make decisions were informed by her presence leading to delayed process. As identified in CIPD (2026), with the organisation encountering issues of increased costs of operations and investment demands, lacking formalised structures reduced capacity for managing occurring issues successfully in major markets in UK, Europe, USA, Canada and China.
Appropriateness– In Artiron Motors, appropriateness is informed by alignment with organisation culture/ethos of individualised/personalised care and empowering staff part of their £2.1 billion. According to Du et al. (2026), having significant employees’ engagement in place, increased retention and new electric vehicles (EVs) appreciation, a stable and trust-based workplace was developed. Also, Artiron Motors would be in a position of enhancing direct relationships with all 50,000 employees hence an all-inclusive decision made influenced by residents’ expectations and background.
Matrix Organisation Structure
This is identified in Almhairat (2025) as formed by many managerial levels/layers with the source of power being from top-levels to lower-levels. A central layer exists for making decisions with legislations/regulations, policy works and operations guiding operations. It is meant for large-scale organisations which demand a consistent, standards-setting and tighter-controls. It is not flexible with often reduced effectiveness in making decisions owing to the gap of senior-leaders, staff and clients (residents).
For advantages, it was possible for Artiron Motors to initiate/set standards replicated in all their products including EVs. The outcome was increased compliant and consistent operations core for large-scale organisations management. Another advantage is the structure enhancing active management of all levels therefore accountable. This is while being target-specific to profitability and core organisation goals (Almhairat, 2025).
For disadvantages, it is characterised with rigidity hence non-flexible lowering ability of employees practicing autonomous relations. This is the case for operations in different European countries type of leadership which tend to alienate some of employees. According to Monteiro and Adler (2022), in this structure, employees voice is not valued hence reduced commitment and intent to exit. Another disadvantage included disruption of the Calmere already existing organisation culture. Apart from the employees whose felt their interests were neglected, the residents similarly assumed a feeling of not prioritised contributing to adverse quality levels.
Appropriateness– In Artiron Motors, it was relevant owing to management of many care homes which demanded unique standards and controls. Elaborate power levels were in place enforcing policy-works, managing performance and accountable financially in the larger-scale organisation. According to Kharkheli and Gavardashvili (2025), this would grant a chance for aligning Artiron Motors organisation objectives with priority given to consistency in advancing services and Return on Investment (ROI) of developing EVs.
1.2 Customer preferences for eco-friendly products
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