(Solution) New Avado PQ CIPD_5CO01_24_01
Solution
Answer to Questions
1.1 Divisional and Matrix Organisational Structure
Divisional Organisational Structure
This is different from having a structure on the employees job description and persons specifications. According to AIHR (2024), products and services offered in an organisation guide the structure used.
An example of an organisation which use the divisional organisation structure is the Landmark Arabia (My current employer). With the organisation operating in retail sector, they have various products and services which define on their active operations. There are management teams leading the different divisions (Orgaimi, 2024).
The advantages include;
Increasing how flexible and adaptable organisation is– According to CIPD (2023a), modern business environment is significantly volatile and also uncertain. In retail industry where Landmark Arabia operate from, the structure is relevant for their successful embrace in business operations. This is best achieved by embracing the divisional structure which guide the areas of improvement.
Innovativeness and creativity– Using the divisional structure means each department is highly creative and innovative to guide their departments to achieve their delivery to their intended end-users. According to AIHR (2024), the rationale of this is successful operations actively.
Disadvantages include;
Lack of Team-Work– Having all the departments independent and autonomously working, this lead to team-based working eliminated. Also, they cannot work in collaboration hence lack of success in their operations. According to Gaspary et al. (2020), the interaction of the different stakeholders in the organisation is affected negatively.
Resource duplicated– The various divisions possessing same role eventually face roles duplicated for many frequencies. In line with CIPD (2024b), the rationale of this is managing costs for their active management.
Underpinning Rationale of Use– For most of the organisations embracing a divisional organisation structure, it lead to guiding broad practices. Having the organisations operating immense costs and revenues, it is easier managing them effectively in their individual terms. Further, with broad goals in place, the structure successfully enable organisation such as Landmark Arabia operations.
Matrix Organisational Structure
For this structure, it has multiple leadership and management levels for successful organisation practices. They are actively engaged on executing the assigned roles/functions. An example of an organisation I am familiar with using this structure is the Saudi Arabian Airlines. This is for their subsidiaries and headquarters (KSA) and other regional offices.
The advantages of the structure;
Improved TEAMWORK– Using a matrix organisation structure, this lead to the teams working in collaboration who include the staff, leadership management and the subordinates teams all working together (CIPD, 2023b).
Effectiveness in resource utilisation– A major issue impacting modern organisations success is having their roles duplicated. As such, they efficiently embrace the resources in executing their functions successfully.
For disadvantages, they include;
Misrepresentation of job roles– In regard to matrix organisation structure, they have all the job roles working in synchronization with no clear differences of these roles. For example, in the Airlines case, the different job functions are mismatched hence negative implication.’
Roles conflicting– The existence of the different roles in a matrix structure and two levels of leadership contribute to lack of an elaborate understanding of employees assigned functions. In line with CIPD (2024), the different conflicts emerge in implementation of the different functions of the employees.
Underpinning Rationale of Use– The matrix organisation structure is relevant for executing technical-based roles in an organisation. An example is the identified organisation example (Saudi Airlines organisation) managing the different organisation operations. Further, through an active coordination, the various subsidiaries operate with great success.
1.2 Strategy, Products and Services
Selected Organisation Strategy– Organisation strategy is a comprehensive plan that defines goals, allocates resources, and guides decision-making, enabling businesses to achieve competitive advantage, adapt to changes, and ensure sustainable long-term growth and success (O’Reilly, 2024). Considering LANDMARK Arabia (my employer), it is a leader in Saudi Arabia (KSA) retail sector. This is with 650 stores which span more than 9 million sq. ft of retail space employing more than 10,300 employees. A significant strategy for enhancing their operations is working on sustainability strategies.
An example of organisation strategy is to guide need to improve how reliable and affordable the retail sector products and services in LANDMARK would be embraced. This is with their focus being on lowering the amount of carbon emitted from their active operations. The outcome of this would be environmental management in the organisation active operations.
A second strategy which is pursued by LANDMARK Arabia is active inclusion to enhance how reliable, affordable and sustainable different stakeholders work in collaboration. According to CIPD (2024c), this is while granting optimum gain/benefit for entire stakeholders in employees lifecycle.
Strategic Goals and Objectives
Considering LANDMARK organisation, their positioning is informed by need to determine the market actors as core operation area. This is noted in Fuertes et al. (2020) as promoting need to identify entire market players as core practice. This is with the organisation supporting need to achieve retail sector operations locally and internationally. For achieving this strategy, they succeed in being well positioned in their retail industry successfully and inclusion of all their employees. According to Smargandi et al. (2024), by implementing appropriate learning and development initiatives, they collaborate towards success in attainment of their vision successfully. This is popularly identified in KSA as the Vision 2030.
Strategic Goals and Products/Services
Considering the earlier noted organisation strategy, its alignment with the entire strategic goals and objectives are guided by economy and business aspects. This is supported by the views in Samargandi et al. (2024) on Porter’s 5 Forces Analysis approach which identify prevalent relations. The tool notes the scope organisation strategy promote leverage on competitive advantage, buyer power improved and suppliers relations.
Hence, to achieve the identified strategies, LANDMARK Arabia would work actively to reinforce increased service quality and downstream management of their operations. This is with maximum management of their hydrocarbon resources application actively. Also, the approach enhances maximization of long-term value change where the upstream approaches prioritise on leverage to competitive advantage and productivity.
To conclude, with LANDMARK Arabia active practice in retail sector, prioritisation is granted to providing increased quality of retail services to KSA citizens, government/administration and industrial players. By ensuring an effective merging, capacity for successfully localizing and generating international relations is achieved. Through competing regionally and internationally, LANDMARK organisation positions themselves distinctly from the others through sustainability of their practices and market dominance
1.3 Interest Rates, Inflations and 3rd Factor
Interest Rates
This is defined by Bauer and Rudebuschv (2020) as incurred costs by borrowers to lend an entity determined in the scope of amount offered. Simply put, this evidence the amount captured from the entire borrowed sum every year.
In Saudi Arabia case, the findings in Alfalih (2024) had argued interest rates as being pegged at 7% in the year 2025 and have increased from the previous 4% in 2024 year. Hence, the changes in the interest rates have a direct effect to recognisable outcomes. A case example is found when the customers are successful in their business environment operate within specified dynamics. In line with Vayanos and Vila (2021), the spend by the clients influence on how they are successful in their business sector. Considering LANDMARK Arabia case, an increase in interest rates contribute to increasing costs provided to clients significantly. This lead to reduced turner of the clients for long.
Priority– Having a highly expanded business portfolio ought to be prioritised successfully. This lead to prioritising on financial outcomes for guiding their active practice (Dong et al., 2025). With LANDMARK Arabia partially a private sector organisation, they can succeed by being supported financially and policy-wise by their government. The limitation of the interest rates is being costly and immense investments required for expanding their operations.
Inflation Rates
This is identified as the basic goods and services which are meant for enhancing the sustainability of customers int heir market. The costs or inflation rates are directly affected by the local economies and how a currency depreciate/appreciate. In line with the findings by Adaramola and Dada (2020), the inflation rates both have a positive and negative implication on how individuals and organisations are working in collaboration. By year 2022 case instance, there was 2% of inflation level. This reduced from 0.5% in previous years. A high-level inflation rates lower LANDMARK as retail sector organisation working with their clients actively in procurement of products and services. This reduce how efficiently and effectively they are working.
Priority- Contraction policy need to be the priority in the priority implementation. This is to successfully manage the noted issue. This is noted in CIPD (2023a) to contribute to the entire amount of spending to execute their organisation practices. This directly impact on how financial position of an organisation are actively managed. The limitation of this is likely disrupted practices with the case taken to courts for rebuttal.
Social Factors
According to Al-Khraif et al. (2020), in the PESTLE factors analysis, this is influencing and shaping people tendency, capacity and lifestyles. For instance, in regard to social factors, thy are impacted by changing cultural factors, societal stratifications and demography. For the modern business sector, a lot of changes are evident from how the Millennials and Gen Z are actively relating with one another in the labour market.
Priority– Organisation operations expansion is supposed to be the prioritised in management of social aspects. This enhance how the different population levels are involved in active operations aligned with the modern business environment. The drawback of this entail costs intensive in recruitment of more individuals with more outcomes sourced.
- AI embrace in Modern Organisations/Impacts
Generative AI in Recruitment Process– This is a form of AI which is used to actively guide how the resourcing process
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