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CIPD Level 33CO01AC 2.2

Understanding organisational structures and design models

3CO01Business, culture and change in context

Written by the People Study Pro CIPD content teamPublished Updated

This CIPD Level 3 video, part of unit 3CO01 – Business, culture and change in context, explores how organisations function as integrated whole systems and examines various organisational structures and design models. Aligned with assessment criteria AC 2.2, the video explains the interconnected nature of work, highlighting how actions taken by people professionals can create ripple effects throughout the organisation, emphasising synergy, interdependence and holistic systems thinking. You'll gain a comprehensive understanding of organisational types, organic living systems approaches, and how design models influence people strategies, policies and procedures, equipping you to recognise the strategic impact of HR decisions across the entire organisation.

What this video covers

Organisational structures sit at the heart of 3CO01 Unit AC 2.2, and this video addresses them by mapping out four distinct structural types — hierarchical, flat, matrix, and network — alongside the trade-offs each one creates for communication, decision-making, and managerial span of control. Rather than treating structure as an abstract concept, the video grounds each type in terms of how information moves, where authority sits, and how different parts of an organisation relate to one another. These distinctions matter for people professionals because structural choices shape the context in which HR policies, procedures, and everyday people practices operate.

The video then moves into three analytical frameworks used to examine organisational design: Mintzberg's Organisational Configurations, the McKinsey 7-S Framework, and Galbraith's Star Model. Each model approaches design from a different angle — Mintzberg's through the identification of core organisational components and their relative dominance, the 7-S Framework through the alignment of seven interdependent elements including strategy, systems, and shared values, and Galbraith's Star Model through the explicit connection between strategy, structure, processes, rewards, and people. Together, they give viewers multiple lenses for analysing why an organisation is designed the way it is and what happens when its components fall out of alignment.

Underpinning all three models is the concept of organisations as interconnected whole systems, which is the central concern of AC 2.2. The video makes clear that structural choices and design decisions are never isolated — adjusting one element creates ripple effects across others, including people strategies, reward systems, and professional practices. This systems perspective is central to understanding why a people professional's actions in one part of an organisation can carry consequences well beyond their immediate area of responsibility.

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Assessment Criteria 2.2

Explain how organisations are whole systems, and how work and actions as a people professional could impact elsewhere in the organisation.

Indicative Content

Organisational types, structures, designs and systems. Organisations as organic living systems; importance of synergy and interdependence, and interconnected practices. Approaches taken to achieve an effective holistic systems approach. Models of organisation design. Impact on organisational and people strategies, policies and procedures

What You'll Learn

Video covering: Understanding organisational structures and design models

About 3CO01Business, culture and change in context

CIPD Level 3
3CO01
Learning Outcome 2

This unit considers the impact of external influences and how the digital and commercial environment shapes businesses and the culture within which they operate. It considers the importance of people’s behaviour on organisational culture and its ability to manage change effectively.

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