CIPD Level 5 — Core Unit

5CO01 Organisational Performance and Culture in Practice

This unit examines the connections between organisational structure and the wider world of work. It covers factors and trends impacting business strategy and workforce planning, and the influence of culture, employee wellbeing and behaviour in delivering change and organisational performance.

7 credits12 assessment criteria70 hours total unit time

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Assessment Criteria Explained

Your 5CO01 assignment questions will closely follow these assessment criteria. Here's what the marker is looking for in each one.

Learning Outcome 1: Understand the connections between organisational structure, strategy and the business operating environment

AC 1.1

Evaluate the advantages and disadvantages of different types of organisation structures, including the reasons underpinning them

You need to cover several organisational structures — functional, divisional, matrix, flat, tall — and critically assess each one. Don't just describe them; weigh up the pros and cons. For example, a matrix structure offers flexibility and cross-functional collaboration but can create confusion over reporting lines. The marker wants to see you explain why organisations choose particular structures (size, strategy, sector, culture) and that you understand there is no single 'best' structure — it depends on context.

AC 1.2

Analyse connections between organisational strategy, products, services and customers

This AC requires you to show how business strategy drives what an organisation offers and to whom. Cover models of strategy formulation (e.g. Porter's generic strategies, Ansoff's matrix, the resource-based view) and explain concepts like vertical and horizontal integration. The marker is looking for analysis — how does an organisation's strategic direction shape its product portfolio, customer base, and competitive positioning? Use real or realistic examples to illustrate the connections.

AC 1.3

Analyse external factors and trends impacting organisations to identify current organisational priorities

Use analytical frameworks — PESTLE is the most obvious, but STEEPLE, Porter's Five Forces, and SWOT are also relevant. You need to identify specific external factors (economic conditions, technological disruption, demographic shifts, government policy, legal regulation, globalisation) and then connect them to organisational priorities such as expansion, restructuring, digital transformation, or skills shortages. The word 'analyse' means go deeper than listing factors — explain how they interact and what they mean for organisations.

AC 1.4

Assess the scale of technology within organisations and how it impacts work

This is about evaluating the extent of technology use across an organisation and its effects on working life. Cover both sides: the benefits (efficiency, collaboration, remote working, automation, innovation) and the challenges (always-on culture, digital exclusion, wasted spend on short-lived technology, impact on wellbeing and work-life balance). The marker wants you to assess — meaning make a judgement — about how technology is reshaping work, not just describe tools and systems.

Learning Outcome 2: Understand organisational culture and theoretical perspectives on how people behave at work

AC 2.1

Explain theories and models which examine organisational and human behaviour

Cover key organisational culture models — Schein's three levels of culture, Handy's four culture types, Hofstede's cultural dimensions — and models of organisational behaviour (autocratic, custodial, supportive, collegial). You should also include management and leadership theory (e.g. transformational vs transactional leadership) and motivation theory (e.g. Maslow, Herzberg, expectancy theory). The marker wants clear, accurate explanations of how these models help us understand why people behave the way they do at work.

AC 2.2

Assess how people practices impact on organisational culture and behaviour

This AC asks you to evaluate the influence people practice has on shaping culture and behaviour. Think about HR's role as 'people champion', how policies on reward, engagement, equality, diversity and inclusion, L&D, and wellbeing directly affect beliefs, values, trust, and motivation. The marker wants you to assess — not just describe — the extent to which people practice can genuinely shift culture, including any limitations or barriers to influence.

AC 2.3

Explain different approaches to managing change

You need to cover a range of change management models: Lewin's three-step model (unfreeze-change-refreeze), Kotter's eight-stage model, and the distinction between planned vs emergent, reactive vs proactive, and radical vs incremental change. Explain when each approach is most appropriate and what drives the choice — for example, urgent restructuring may require a top-down planned approach, while cultural change might need an emergent, participative approach. Cover the levers and drivers of change.

AC 2.4

Discuss models for how change is experienced

This is about the human side of change — how individuals and groups experience transitions. Cover models such as the Kübler-Ross adapted change curve, Tannenbaum and Hanna's three-stage model, Spencer and Adams' seven-stage model, and the concepts of readiness for change and resistance to change. The marker wants you to show understanding of why people resist change and how organisations can support employees through the emotional and psychological journey of change.

AC 2.5

Assess the importance of wellbeing at work and the different factors which impact wellbeing

You need to evaluate why wellbeing matters — covering its impact on engagement, motivation, job satisfaction, physical and mental health, resilience, and self-image. Link wellbeing to the psychological contract and work-life balance. Then assess the factors that affect wellbeing: workload, management style, relationships, organisational culture, remote working pressures, and wider family issues. The marker also wants you to connect reduced wellbeing to organisational consequences — absenteeism, presenteeism, lower productivity, interpersonal conflict.

Learning Outcome 3: Understand how people practice supports the achievement of business goals and objectives

AC 3.1

Discuss the links between the employee lifecycle and different people practice roles

Cover the stages of the employee lifecycle — attraction, recruitment, induction/onboarding, development, retention/engagement, exit/separation — and explain what role people practice plays at each stage. Include specific touchpoints for HR, L&D, and OD professionals. The marker wants a discussion, so explore how these roles are evolving and how different areas of people practice contribute to the overall employee experience.

AC 3.2

Analyse how people practice connects with other areas of an organisation and supports wider people and organisational strategies

This is about the strategic positioning of people practice within an organisation. Cover concepts like business partnering, vertical integration (aligning people strategy with corporate strategy) and horizontal integration (ensuring consistency across people practice activities). Explain the services people practice provides — policy development, legislative compliance, recruitment, L&D, management development — and how these connect to and support business functions and objectives.

AC 3.3

Discuss processes for consulting and engaging with internal customers to understand their needs

The marker wants to see that you understand how people practice identifies and responds to the needs of internal stakeholders. Cover consultation methods, communication processes, stakeholder analysis, and needs analysis activities. Discuss the importance of regular, effective liaison with managers and employees, and how monitoring and evaluation activities help people practice stay aligned with business needs. This is about being a responsive, customer-focused function.

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Short explainer videos covering every assessment criterion in 5CO01. Free to watch with any account.

AC 1.1Divisional and matrix structuresAC 1.1Other structures and aligning structure with strategyAC 1.1Why organisations need structure and functional structuresAC 1.2Strategic integration and connecting strategy to customersAC 1.2External and internal contexts shaping organisational strategyAC 1.2Organisational insights, performance, and strategy modelsAC 1.3Analysis Tools for Examining the External EnvironmentAC 1.3Key External Factors Affecting OrganisationsAC 1.3How External Factors Shape Organisational PrioritiesAC 1.4Technology Investment and SupportAC 1.4Understanding the Scale of Technology in OrganisationsAC 1.4How Technology Impacts Work and WorkersAC 2.1Leadership Styles and Motivation TheoriesAC 2.1Organisational Culture TheoriesAC 2.1Organisational Behaviour Models and the Learning OrganisationAC 2.2Introduction to People Practices and Organisational CultureAC 2.2Impact on Beliefs, Values, Trust and OpennessAC 2.2Impact on Motivation, Learning and WellbeingAC 2.3Foundational Change Models - Lewin and KotterAC 2.3Strategic Approaches to ChangeAC 2.3Drivers and Levers of ChangeAC 2.4Introduction to change experiences and the psychology behind themAC 2.4Spencer and Adams' seven-stage model, readiness for change, and working with resistanceAC 2.4The Kubler-Ross adapted model and Tannenbaum and Hanna's three-stage modelAC 2.5Understanding Workplace Wellbeing and the Business CaseAC 2.5How Wellbeing Impacts the IndividualAC 2.5Organisational Impact and Factors Influencing WellbeingAC 3.1Exit, post-employment, and the evolution of people practice across the lifecycleAC 3.1Introduction to the employee lifecycle and early stages (attraction, recruitment, onboarding)AC 3.1Development, retention, engagement and the ongoing employment relationshipAC 3.2Strategic Position of People Practice and Vertical IntegrationAC 3.2Horizontal Integration and Business PartneringAC 3.2People Practice Services and Creating Effective IntegrationAC 3.3Understanding internal customers and identifying their needsAC 3.3Consultation, communication, and stakeholder analysisAC 3.3Ongoing liaison, needs analysis, and monitoring effectiveness

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