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Organisations & culture

What is an organisation?

An organisation is a group of people working together towards a shared purpose, using structure, resources and processes to deliver goods or services. Organisations exist in different legal forms: private sector (profit-driven, e.g. limited companies, PLCs), public sector (funded by taxation, e.g. NHS, local councils), and third sector (not-for-profit, e.g. charities, social enterprises, mutuals).

Organisational structures

  • Functional structure: grouped by specialism (HR, finance, operations) - efficient but can create silos.
  • Divisional structure: grouped by product, service or geography - responsive but can duplicate resources.
  • Matrix structure: dual reporting lines (e.g. project and function) - flexible but can confuse accountability.
  • Flat structure: few management layers, wide spans of control - fast decisions, less hierarchy.
  • Tall structure: many layers, narrow spans of control - clear control, slower communication.

Organisational culture

Culture is 'the way things are done around here' - shared values, beliefs, attitudes and behaviours. Handy's Four Culture Types (a key model):

  • Power culture: control sits with one person or small group (spider's web); fast but risky if that person leaves.
  • Role culture: rules, procedures and job descriptions dominate (Greek temple); stable but slow to change.
  • Task culture: teams form around projects/problems (net); flexible, expertise-driven.
  • Person culture: individuals valued above the organisation (cluster), e.g. partnerships of barristers or doctors.

PESTLE - external factors shaping organisations

Political, Economic, Social, Technological, Legal, Environmental. People practitioners use PESTLE to understand how external change (e.g. new employment law, recession, automation) affects people plans.

Purpose, vision, mission and values

  • Purpose: why the organisation exists.
  • Vision: where it wants to be in future.
  • Mission: how it will get there.
  • Values: the principles guiding behaviour day to day.

People practices (recruitment, reward, L&D) should align to these so the workforce delivers strategy - this is the core of 'people practice adds value'.

Common mistakes

  • Confusing structure (formal reporting lines) with culture (informal shared behaviours) - they are related but not the same thing.
  • Assuming Handy's culture types are fixed - most organisations are a blend, with one type dominant.
  • Forgetting that culture is shaped by leadership behaviour, reward systems and induction, not just by a values poster on the wall.
  • Overlooking that PESTLE factors are external and largely outside the organisation's control, unlike internal culture and structure.
  • Handy's Four Culture Types are Power, Role, Task and Person culture - learn all four with their symbols (web, temple, net, cluster).
  • PESTLE stands for Political, Economic, Social, Technological, Legal, Environmental - used to scan the external operating environment.
  • Culture is defined as 'the way things are done around here' - shared values, beliefs and behaviours, distinct from formal structure.
  • A functional structure groups people by specialism (e.g. HR, finance); a divisional structure groups by product, service or geography.
  • A matrix structure creates dual reporting lines, offering flexibility but potential confusion over accountability.
  • Flat structures have few management layers and wide spans of control; tall structures have many layers and narrow spans of control.
  • Purpose is why an organisation exists, vision is where it wants to be, mission is how it gets there, and values guide day-to-day behaviour.
  • Organisations fall into three main sectors: private (profit-driven), public (tax-funded) and third/voluntary (not-for-profit).
  • Role culture relies on rules, procedures and job descriptions, making it stable but slow to adapt to change.
  • People practices must align to organisational purpose and values to demonstrate strategic added value.
What are Handy's Four Culture Types?
Power, Role, Task and Person culture.
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What symbol represents Power culture in Handy's model?
A spider's web - control radiates from one central person or small group.
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What symbol represents Role culture?
A Greek temple - stability built on rules, procedures and defined roles.
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What symbol represents Task culture?
A net - flexible teams form around projects and expertise.
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What symbol represents Person culture?
A cluster - individuals are valued above the organisation, e.g. partnerships.
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What does PESTLE stand for?
Political, Economic, Social, Technological, Legal, Environmental.
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What is the difference between organisational structure and culture?
Structure is the formal reporting lines and hierarchy; culture is the shared informal values and behaviours - 'the way things are done around here'.
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What is a functional structure?
An organisation grouped by specialism, such as HR, finance and operations.
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What is a divisional structure?
An organisation grouped by product, service or geography rather than specialism.
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What is the main risk of a matrix structure?
Dual reporting lines can create confusion over accountability, despite offering flexibility.
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What is the difference between a flat and a tall structure?
Flat has few management layers and wide spans of control; tall has many layers and narrow spans of control.
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What are the three main organisational sectors?
Private (profit-driven), public (tax-funded) and third/voluntary (not-for-profit).
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Define vision, mission and values in one line each.
Vision = where the organisation wants to be; mission = how it will get there; values = the principles guiding behaviour.
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Why should people practices align to organisational purpose?
Because it demonstrates how HR activity adds strategic value by supporting what the organisation is trying to achieve.
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What commonly gets confused with organisational culture?
Organisational structure - they are related but structure is formal reporting lines, culture is shared behaviour and values.
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The people professional's role

What is a people professional?

A people professional is anyone working in HR, L&D or people practice who supports an organisation's workforce and drives business performance through good people management. The role sits between the organisation's strategic needs and the day-to-day experience of employees.

The CIPD Profession Map

CIPD defines the role through its Profession Map, built on three pillars:

  • Core knowledge - the foundations every people professional needs (e.g. business acumen, culture, wellbeing, technology).
  • Core behaviours - how you carry out the work (e.g. ethical practice, valuing people, curiosity, decisive thinking).
  • Specialist knowledge - deeper expertise in areas like resourcing, reward or employee relations.

Key activities of the role

  • Advising and supporting line managers on people issues (recruitment, performance, absence, conduct).
  • Ensuring legal compliance (employment law, data protection, health and safety).
  • Building policies and processes that are fair, consistent and fit for purpose.
  • Championing employee wellbeing and a positive working culture.
  • Using data and evidence to inform decisions, not just gut feel.

Ethical practice and professional courage

CIPD places huge weight on acting as a trusted adviser: being honest, challenging poor decisions (even from senior leaders), and speaking up when something is wrong. This is often tested through scenario questions - pick the answer that shows courage, honesty and fairness, not the one that avoids conflict.

Being a good business partner

People professionals must understand the organisation's context - its sector, size, structure and external environment (PESTLE factors: political, economic, social, technological, legal, environmental) - and tailor advice accordingly. A policy that works in a small charity may not suit a large multinational.

Continuing Professional Development (CPD)

CPD is an ongoing, planned process of maintaining and improving knowledge and skills throughout your career. It is not a one-off event - CIPD expects reflection (what did I learn?), planning (what do I need next?) and recording (evidence of the cycle).

Common mistakes

  • Confusing the three pillars (behaviours are about HOW you act, not WHAT you know).
  • Forgetting that the role is about supporting the WHOLE business, not just HR admin.
  • Treating ethics as optional rather than central to every decision.
  • Assuming CPD only means formal courses - it also includes reading, mentoring, and reflecting on experience.
  • The CIPD Profession Map has 3 pillars: Core Knowledge, Core Behaviours, and Specialist Knowledge.
  • Core behaviours describe HOW the work is done (e.g. ethical practice, curiosity), not what you know.
  • People professionals must act as trusted advisers, showing professional courage to challenge poor decisions.
  • PESTLE stands for Political, Economic, Social, Technological, Legal, Environmental - the external context shaping people practice.
  • CPD (Continuing Professional Development) is an ongoing, planned cycle: reflect, plan, act, record - not a one-off event.
  • People practice must support the whole organisation's performance, not just deliver HR administration.
  • Advice and policies must be tailored to the specific organisation's size, sector and structure - there is no one-size-fits-all approach.
  • Ethical practice means being honest and fair even when it is uncomfortable or unpopular with senior leaders.
  • Data and evidence should underpin people decisions, not assumption or personal opinion.
  • Line managers are supported and coached by people professionals, not simply told what to do.
What are the three pillars of the CIPD Profession Map?
Core Knowledge, Core Behaviours, and Specialist Knowledge.
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What does 'core behaviours' describe in the Profession Map?
How the work is carried out - things like ethical practice, curiosity and decisive thinking - not technical knowledge.
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What does professional courage mean for a people professional?
Being willing to challenge poor decisions and speak up, even to senior leaders, when something is wrong.
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What does PESTLE stand for?
Political, Economic, Social, Technological, Legal, Environmental - factors shaping an organisation's context.
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What is CPD?
Continuing Professional Development - an ongoing, planned cycle of reflecting, planning and recording learning throughout a career.
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Is CPD a one-off training event?
No - it is a continuous cycle of reflection, planning and evidence, not a single course.
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What is the main role of a people professional towards line managers?
To advise, support and coach them on people issues, not simply instruct them.
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Why must policies be tailored rather than generic?
Because organisations differ in size, sector and structure, so a policy fit for one may not suit another.
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What should underpin good people decisions according to CIPD?
Data and evidence, rather than assumption or personal opinion.
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What is meant by acting as a 'trusted adviser'?
Being honest, ethical and reliable so leaders and employees trust your guidance on people matters.
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Give two examples of core knowledge areas in the Profession Map.
Business acumen and workplace culture and behaviours (also wellbeing and technology).
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What is a key activity of people practice beyond compliance?
Championing employee wellbeing and building a positive working culture.
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Employment law essentials

Why employment law matters

Every People Practice decision sits on top of employment law. Get the basics wrong and the organisation faces tribunal claims, reputational damage and cost. As a Level 3 practitioner you need to know the key rights, the qualifying periods and the difference between 'employee', 'worker' and 'self-employed'.

Employment status

Rights depend on status.

  • Employees get the full set of statutory rights (unfair dismissal, redundancy pay, etc).
  • Workers get core rights (National Minimum Wage, paid holiday, rest breaks) but not unfair dismissal or redundancy pay.
  • Self-employed contractors get very few statutory employment rights; they operate under a contract for services, not a contract of employment.

Contracts and written statements

A written statement of employment particulars must be given on or before day one of employment (this changed from within two months to day one, effective 6 April 2020). It must cover pay, hours, holiday, notice, job title and place of work.

Key qualifying periods and figures

  • Unfair dismissal: normally needs two years' continuous service to claim (day-one right for automatically unfair reasons like whistleblowing or pregnancy).
  • Statutory redundancy pay: needs two years' service; calculated by age, length of service and weekly pay, capped at a maximum weekly amount set each April.
  • Statutory notice: minimum one week per full year of service after one month's employment, up to a maximum of 12 weeks.
  • National Minimum Wage and National Living Wage rates are reviewed every April; the National Living Wage applies from age 21.
  • Statutory maternity leave: up to 52 weeks (26 ordinary + 26 additional); statutory paternity leave: up to two weeks.
  • Right to request flexible working: a day-one right since April 2024, and employees can now make two requests in any 12-month period.

The Equality Act 2010

This sets out nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. It prohibits direct discrimination, indirect discrimination, harassment and victimisation, and requires reasonable adjustments for disabled employees.

Common mistakes to avoid in the exam

  • Confusing 'worker' and 'employee' status and their rights.
  • Forgetting that some rights (like protection from discrimination) apply from day one with no qualifying period.
  • Mixing up notice periods with the redundancy consultation periods (20+ redundancies needs collective consultation, starting at least 30 days before the first dismissal, or 45 days for 100+).
  • Assuming all dismissals need two years' service; automatically unfair reasons do not.

Learn the day-one rights versus the two-year rights as a clear mental checklist, and you will handle most exam scenario questions confidently.

  • A written statement of employment particulars must be issued on or before day one of employment (since 6 April 2020).
  • Unfair dismissal claims normally require two years' continuous service, except for automatically unfair reasons which are day-one rights.
  • Statutory redundancy pay requires two years' service and is capped at a maximum weekly pay figure reviewed every April.
  • Statutory minimum notice is one week per full year of service after one month, capped at 12 weeks.
  • The Equality Act 2010 protects nine characteristics including age, disability, sex and race.
  • The right to request flexible working became a day-one right in April 2024, with up to two requests allowed per 12 months.
  • Statutory maternity leave can last up to 52 weeks; statutory paternity leave is up to two weeks.
  • Workers are entitled to National Minimum Wage and paid holiday but not to claim unfair dismissal or redundancy pay.
  • Collective redundancy consultation must start at least 30 days before the first dismissal for 20 to 99 redundancies, or 45 days for 100 or more.
  • National Living Wage applies from age 21 and rates are reviewed every April.
  • Protection from discrimination under the Equality Act applies from day one, with no length-of-service qualifying period.
  • A contract of employment can be verbal or written in law, but a written statement of particulars is a separate legal requirement.

Recruitment & selection

Why recruitment and selection matters

Getting the right people into the right roles is one of the biggest levers people practice professionals have. Poor recruitment costs money through turnover, retraining, lost productivity and, in the UK, potential tribunal claims if the process discriminates unlawfully. A structured approach protects the organisation and gives candidates a fair chance.

Workforce planning first

Before advertising anything, check whether the vacancy is genuinely needed. This means reviewing headcount, budget, skills gaps and future demand. A job analysis identifies the tasks, responsibilities and outcomes of the role, which then feeds into a job description (duties, reporting lines) and a person specification (skills, experience, qualifications, behaviours needed).

Attracting candidates

  • Internal methods: promotion, secondment, talent pools - cheaper, faster, boosts morale, but limits fresh thinking.
  • External methods: job boards, agencies, social media, employee referral schemes, careers fairs - wider pool but slower and costlier.
  • Job adverts must be clear, accurate and avoid discriminatory wording (for example age-coded phrases like young and dynamic).

Selection methods

  • Application forms and CVs - screen against the person specification, not gut feel.
  • Interviews - the most common method; structured interviews (same core questions, scored consistently) are more valid and defensible than unstructured chats.
  • Psychometric tests - measure aptitude or personality; must be validated and job-related.
  • Assessment centres - combine several methods (role plays, group tasks, presentations) for senior or complex roles.

The legal framework

The Equality Act 2010 protects nine characteristics (age, disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion or belief, sex, sexual orientation) at every stage, from the advert to the offer. Selection criteria must relate to genuine job requirements. Reasonable adjustments must be offered to disabled candidates during the process, for example extra time or accessible venues. Right to work checks are a legal requirement before employment starts.

Making the decision

Decisions should be evidence-based, comparing each candidate against the same person specification, not against each other informally. Keep structured notes to justify decisions and support feedback.

Common mistakes to avoid

  • Relying only on gut feel instead of structured criteria.
  • Asking questions unrelated to the job (for example about family plans) which risks discrimination claims.
  • Skipping job analysis and just recycling an old advert.
  • Failing to give unsuccessful candidates timely, constructive feedback.
  • Not keeping robust records of decisions and scoring.
  • The Equality Act 2010 protects nine characteristics throughout the whole recruitment process, from advert to offer.
  • Job analysis must happen before writing a job description or person specification.
  • A job description covers duties and reporting lines; a person specification covers the skills, experience and behaviours needed.
  • Structured interviews (same questions, consistent scoring) are more valid and legally defensible than unstructured ones.
  • Internal recruitment methods include promotion, secondment and talent pools.
  • External recruitment methods include job boards, agencies, referral schemes and social media.
  • Psychometric tests must be validated and directly job-related to be used fairly.
  • Assessment centres combine multiple methods such as role plays, group exercises and presentations, typically for senior roles.
  • Reasonable adjustments must be offered to disabled candidates at every selection stage.
  • Right to work checks are a legal requirement that must be completed before someone starts employment.
  • Selection decisions should compare each candidate against the person specification, not against each other informally.
  • Discriminatory advert wording, such as age-coded terms, can expose an organisation to tribunal claims.

Learning & development

What learning and development (L&D) covers

L&D is about building the skills, knowledge and behaviours people need now and in the future. In Level 3 you need to know the difference between three related terms.

  • Training: a planned, often short-term activity to fix a specific skills gap (a course, a workshop).
  • Learning: the ongoing personal process of acquiring knowledge, skills and behaviour change - broader than training.
  • Development: longer-term growth of a person's overall capability, often linked to career progression.

Identifying learning needs

Organisations identify needs at three levels: organisational (strategy and future skills), team (department gaps), and individual (personal performance or career needs). Common tools include training needs analysis (TNA), performance reviews, appraisals, skills audits and exit interview data.

The learning cycle

Kolb's experiential learning cycle has four stages: concrete experience, reflective observation, abstract conceptualisation, active experimentation. People practice professionals use this to design activities that suit different learners, not just a single style.

Learning styles and preferences

Honey and Mumford identified four preferences: activist, reflector, theorist, pragmatist. The exam focus is on knowing that people learn differently and blended approaches work best - not on treating VAK (visual/auditory/kinaesthetic) styles as scientifically proven, since current evidence questions strict learning-styles theory.

Delivery methods

  • On-the-job: coaching, mentoring, shadowing, secondments - cheap, realistic, but inconsistent quality.
  • Off-the-job: courses, e-learning, workshops - consistent content, but can lack workplace relevance and costs more.
  • Blended learning: mixes both for reach and reinforcement.

Evaluating L&D

Kirkpatrick's four levels are the classic model, and CIPD expects you to name them in order: 1 Reaction (did they like it), 2 Learning (did knowledge/skill increase), 3 Behaviour (are they applying it at work), 4 Results (business impact, e.g. productivity or error rates). Most organisations only evaluate at level 1, which is a common exam trap to flag as a weakness.

Common mistakes to avoid

  • Confusing training (an event) with learning (an ongoing process) - examiners test this distinction directly.
  • Assuming one learning style fits one person permanently - modern view favours flexible, blended delivery.
  • Forgetting that evaluation should link back to the original business need identified in the TNA.
  • Ignoring that development is continuous (see CPD) whereas training can be a one-off intervention.

Continuing Professional Development (CPD)

CPD is the individual's own responsibility to keep skills current throughout their career, supported by reflective practice - what did I do, what did I learn, what will I do differently.

  • Training is a planned event to close a specific skills gap; learning is the ongoing process of gaining knowledge and skills.
  • Kolb's experiential learning cycle has 4 stages: concrete experience, reflective observation, abstract conceptualisation, active experimentation.
  • Honey and Mumford's four learning preferences are activist, reflector, theorist and pragmatist.
  • Kirkpatrick's evaluation model has 4 levels: Reaction, Learning, Behaviour, Results.
  • Level 1 (Reaction) is the most commonly used evaluation level but tells you the least about business impact.
  • Training needs analysis (TNA) is carried out at organisational, team and individual level.
  • On-the-job methods include coaching, mentoring, shadowing and secondments.
  • Off-the-job methods include courses, workshops and e-learning, offering consistency but less workplace relevance.
  • Blended learning combines on-the-job and off-the-job methods to improve reach and retention.
  • CPD is the individual's ongoing responsibility to keep their own skills and knowledge current.
  • VAK learning styles theory is popular but lacks strong scientific evidence, so blended delivery is preferred.
  • Development refers to long-term growth of overall capability, often linked to career progression rather than a single skill gap.
What is the key difference between training and learning?
Training is a planned, often short, event to close a specific skills gap; learning is the ongoing, broader process of gaining knowledge, skills and behaviour change.
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Name the four stages of Kolb's experiential learning cycle.
Concrete experience, reflective observation, abstract conceptualisation, active experimentation.
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What are Honey and Mumford's four learning styles?
Activist, reflector, theorist, pragmatist.
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List Kirkpatrick's four levels of evaluation in order.
1 Reaction, 2 Learning, 3 Behaviour, 4 Results.
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Which Kirkpatrick level measures business impact such as productivity or cost savings?
Level 4, Results.
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Which Kirkpatrick level is most commonly used by organisations, and what is its weakness?
Level 1, Reaction - it only measures immediate satisfaction, not whether learning or behaviour actually changed.
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At what three levels is a training needs analysis usually carried out?
Organisational, team and individual level.
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Give three examples of on-the-job learning methods.
Coaching, mentoring and job shadowing (secondments also count).
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Give two examples of off-the-job learning methods.
Formal courses/workshops and e-learning.
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What is blended learning?
A combination of on-the-job and off-the-job methods used to improve reach, relevance and retention.
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What does CPD stand for and who is responsible for it?
Continuing Professional Development - the individual employee is responsible for maintaining and updating their own skills.
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Why is VAK learning styles theory treated with caution in current best practice?
There is limited scientific evidence that matching teaching to a fixed visual/auditory/kinaesthetic style improves learning, so blended methods are preferred.
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How does development differ from training?
Development is long-term growth of a person's overall capability and career potential, while training targets a specific, often short-term, skills gap.
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What should evaluation of an L&D activity be linked back to?
The original business or learning need identified during the training needs analysis.
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