7OS02 Learning and Development Practice provides a broad overview of learning and development for those working mainly in general people practice. It examines the role of the learning function in all types of organisations and explores how learning provision is shaped by a range of internal and external factors. It also highlights how organisational power and political structures can influence the learning function.
Table of Contents
Learning Outcome 1: Understand the external environment and internal organisational context for learning and development.
AC 1.1 Analyse the impact of the external environment on the organisational strategy, including the importance of horizontal and vertical alignment.
The external environment exerts a profound and continuous influence on organisational strategy, requiring organisations to scan, interpret, and respond to macro-level forces systematically. PESTLE analysis provides a structured framework for examining the political, economic, social, technological, legal, and environmental factors that shape the strategic landscape in which organisations operate and within which L&D functions must position their contribution (Armstrong and Taylor, 2023).
Political and regulatory developments, including post-Brexit trade arrangements, evolving employment legislation such as the Employment Rights Bill, and government skills policy including the apprenticeship levy reform, directly shape workforce development priorities. Economic conditions, including inflation, labour market tightness, and sector-specific growth or contraction, determine both the resources available for L&D investment and the urgency of reskilling and upskilling initiatives. The World Economic Forum’s (2024) Future of Jobs Report predicts that 50 per cent of employees will require reskilling by 2027 due to automation and AI integration, creating unprecedented demand for strategically aligned L&D provision (CIPD, 2024).
Vertical alignment refers to the connection between organisational strategy and the strategies of individual functions, including L&D. When L&D strategy is vertically aligned, learning priorities directly support the achievement of organisational strategic objectives, such as market expansion, digital transformation, or customer experience improvement. Without vertical alignment, L&D risks operating as a detached function delivering programmes that do not contribute meaningfully to organisational performance (Lancaster, 2023).
