Organisational Performance and Culture in Practice – CIPD Level 5
The CIPD Level 5 unit 5CO01 Organisational Performance and Culture in Practice helps students understand how an organisation’s purpose, strategy and workplace culture come together to create long-term success. It moves beyond theory and focuses on practical application, showing how day-to-day people practices contribute to overall performance.
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The 5CO01 assignment is typically broken down into two main tasks.
This report is all about demonstrating your ability to analyse the connections between a real-world organisation`s structure, its overall strategy, and the external environment it operates within.
This section is more theoretical and is often presented as a set of slides with speaker notes. It tests your knowledge of culture, behaviour, and change management.
A PESTLE analysis for this assignment is more than just a list of factors. It`s a tool for analysis and strategic thinking.
Edgar Schein`s model is a powerful tool because it helps you look beneath the surface. To apply it, you must analyse the three distinct levels of your chosen organisation`s culture:
How to apply: Describe the observable artefacts of your organisation. For a modern tech company, this could be their open-plan offices, casual dress code, and frequent team social events. For a traditional law firm, it might be the formal suits and private offices.
How to apply: Discuss the values the company says it holds. Look at their mission statement or website. For example, a company might say its core value is "innovation" or "customer-centricity."
How to apply: This is where you show your critical thinking. Is the company`s espoused value of "innovation" actually reflected in how employees work? If the company says it values risk-taking but penalises employees for mistakes, then its true underlying assumption is caution and risk aversion. Your assessment needs to highlight this alignment or misalignment.
Kotter`s model provides a step-by-step framework for successful change. To apply it, you need to walk through each step as if you were guiding a change initiative.
Example: A short-term win might be a successful pilot of the new HR system in a small team, celebrated publicly to build momentum for the wider rollout.
Organisational performance depends heavily on the way people are managed and supported. In the context of CIPD 5CO01 Organisational Performance and Culture in Practice, people practices are the HR strategies and day-to-day activities that shape how employees are recruited, developed, motivated and retained.
Effective recruitment and selection ensure that skilled and culturally aligned employees join the workforce. This reduces turnover and supports productivity. Comprehensive induction and training help new and existing staff to understand their roles and develop the capabilities needed for changing business needs.
Performance management is another key practice. Setting clear objectives, offering regular feedback and reviewing outcomes keep everyone focused on shared goals. Reward and recognition systems reinforce the behaviours that drive performance. Fair pay, bonuses and public appreciation all raise motivation and commitment.
Employee engagement and wellbeing initiatives support a positive working climate. Flexible working, mental health support, and good communication reduce stress and absenteeism, encouraging discretionary effort. Together these practices create a culture of trust and inclusion where people want to give their best.
Good people practices also help organisations respond to external change. Ongoing professional development, succession planning and career pathways ensure a pipeline of talent ready to take on new challenges. When HR policies reflect the organisation’s values and strategic aims, staff performance and organisational results strengthen side by side.
Divisional Structure: Groups operations around products, services or geographic markets. Advantages include clear accountability and customer focus, but it can duplicate functions and create competition between divisions.
Matrix Structure: Combines functional and project or product reporting lines. Encourages collaboration and flexibility but can cause dual reporting conflicts and slower decision-making.
In practice, many organisations blend features of both structures to fit their size, strategy and culture.
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