organisational apparaisal

8/2/2019 organisational apparaisal

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Organisational appraisal

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GHOSH


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STRATEGIC ADVANTAGE

ORGANISATIONAL CAPABILITY

COMPETENCIES

SYNERGISTIC EFFECTS

STRENGTHS AND WEAKNESSES

ORGANISATIONAL BEHAVIOUR

ORGANISATIONAL RESOURCES2/27/12 DR SUNANDA MITRA

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ORGANISATIONALRESOURCES


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Firm is bundle of resources

tangible / intangible


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Physic

alr es

our ces

Physical resources

Hu

manr e

sour ce

Human resources

Or ganizati

Organizational resources


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Physicalresources

Plant /equipment Technology Geographical

location Access to raw

material

Humanresources

relationship judgment Training Experien

ce Intelligen

ce

Organizationalresources

Informalrelationship Formal system


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Strategic advantage can be getif resources possessed


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Organizational behaviour


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Quality of leadership

Management philosophy

Shared values

culture

Quality of work environment

Organizational politics2/27/12 DR SUNANDA MITRA

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Together they producestrength & weakness fororganization

Hard side (resources)

Soft side (behaviour)

Marriage


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Strength & weakness


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Strength & weakness dont exist in isolation

They should be combined

Strength (inherent

Weakness(inherent limitation)


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Synergistic effect


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Strong point

Strong point

Bigger strong point


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Weak

Weak

Bigger Weak point


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2 2 5

2 2 3


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competencies


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Resources + behaviour

Strength / weakness

Synergistic effect


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Mostly developed in functional areas

FINANCE, MARKETING,R&D ..

Exixts


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Finance capability


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AVAIBILITY

USAGE

MANAGEMENT OF FUNDS


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Sources Of Funds

CreditAvailability Reserves &

Surplus Procureme

nt Of Capital

CapitalStructure

WorkingCapital

Usage Of Fund

Relationship WithShareholders Current Assets Fixed Assets Capital

Investment Dividend

Distribution

Management Of Funds

Inflation Return &RiskManagement

BudgetingSystem

FinancialHealth


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STRENGTHS FOR FINANCIALCAPABILITIES


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ACCESS TO FINANCIAL RESOURCES

GOOD RELATIONSHIP WITH FINANCIAL INSTITUTIONS

EFFICIENT CAPITAL BUDGETING

LOW COST OF CAPITAL

SHAREHOLDERS CONFIDENCE

TAX BENEFIT

MERGERS ACQUISITIONS


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MARKETING CAPABILITIES


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STRENGTH FORMARKETING FACTORS


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OPERATIONALCAPABILAITIES


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LOCATION, LAYOUT,PRODUCT DESIGN,AUTOMATION,

PRODUCTION PLANNING,MATERIL SUPPLY, COST &QUALITY CONTROL,

PRODUCTDEVELOPMENT, TECHNOLOGYUSED


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PERSONNEL CAPABILITIES


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PESONNE ORG EMPLOYEES INDUSTRIAL


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PESONNEL SYSTEMPESONNEL SYSTEM

ORG. EMPLOYEESCHARECTERISTICSORG. EMPLOYEESCHARECTERISTICS

INDUSTRIALRELATIONINDUSTRIALRELATION


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General managementcapability


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General management system


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General management system

General managers

External relationship


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Methods & techniques used fororganizational appraisal


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INTERNAL

INTERNAL

COMPARATIVE

COMPARATIVE

COMPREHENSIVE

COMPREHENSIVE


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ANALYSISANALYSIS VALU

ECHAIN

QUANTATIVEANALYSIS

HIST

ORICAL INDUST

RYNORMS

BENCHMARKING

BALANCESCORECARD

KEYFACTOR

ANALYSISANALYSIS VALUE

CHAIN QUANTATIVE

ANALYSIS HIST

ORICAL INDUSTR Y NORMS

BENCHMARKING

BALANCESCORE CARD

KEY FACTORRATING

ALANIYSISALANIYSIS VALUE

CHAIN QUANTATIVE

ANALYSIS HISTO

RICAL INDUSTRY

NORMS BENCHM

ARKING BALANCE

SCORE CARD KEY FACTOR

RATING


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INTERNAL ANALYSIS2/27/12 DR SUNANDA MITRA

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Click to edit Master text stylesSecond level

Third level Fourth level

Fifth level

Strengths

Possessed Resources

developed capabilities

Weaknesses

lacking Resources

deficient capabilities

Prevents an organization fromdeveloping a sustainablecompetitive advantage


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Value Chain Analysis

Value Chain AnalysisCustomers want (demand) some type of value from the goods and services theypurchase or obtainCustomer value arises from

(1) Uniqueness of product or service (2) Low-priced product/service (3) Quick response to specific or distinctive

customer needs

Allow assessment of cost


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VALUE CHAIN

Michael porter (1985) The Value Chain


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The Value Chain The value chain identifies the separate

activities and business processesperformed( inter-linked activities) to createcustomer value.Consists of two types of activitiesPrimary activities : create customervalue

Inbound logistics, Operations; Outboardlogistics; Sales & Marketing; & Customer

ServiceSupport activities: Support primaryactivities

Procurement; Technologicaldevelopment; HRM; GeneralAdministration (Firm infrastructure)

A Typical Value Chain


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A Typical Value Chain

OutboundLogisticsOperations

InboundLogistics

Sales andMarketing Service

ProfitMargin

rocurement; purchasing, physical recourses, Product&D, Technology,

Human Resources Management

General Administration (Firm Infrastructure)

imary Activities and Costs

Support

The Value Chain System


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The Value Chain System

Activities,

Costs, &Margins of Suppliers

Internally

PerformedActivities,

Costs, &

Margins

Activities,Costs, &

Margins of

ForwardChannelAllies &

StrategicPartners

Buyer/User Value

Chains

UpstreamValue Chain Downstream Value Chains

Firms OwnValue Chain


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Identifying a Companys Capabilities


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Source: Robert M. Grant, Contemporary Strategy Analysis , Basil Blackwell, 1991.

Corporate head office

Management information

Research and development

Manufacturing

Product design

Marketing

Sales and distribution

Capability in basicresearch

Ability to produceinnovative products

Speed of newproduct development

e.g., IBM, AT&T,Sony

APPLE

Canon

Functional Area Capability Example

Identifying a Company s Capabilitiesand Value Chain


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Soft DrinksIndustry

Processing of basicingredients

Syrupmanufacture

Bottling &can filling

Wholesale

distribution Retailing

Computer SoftwareIndustry

Pro rammin

COMPARATIVE ANALYSIS

COMPARATIVE ANALYSIS


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HISTORICAL

INDUSTRY NORMS

BENCHMARKING


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BENCHMARKING


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process of identifying " best practice "

in relation to both products &

processessearch for "best practice" can takeplace both inside a particular industry,

also in other industries


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The objective


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To understand

and evaluate thecurrent position

of a business ororganisation

In relation to "best

practice" &To identify areas of

performance

improvement.

The Benchmarking Process

Understand in detailexisting businessprocesses

Analyse the businessprocesses of others

Compare ownbusinessperformance withthat of othersanalysed

Implement the steps

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Types of Benchmarking


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yp gType Description Most Appropriate for

the FollowingPurposes

StrategicBenchmarking

Need to improve overallperformance long-term strategies forhigh-performers tosucceed. Considering high level

aspects corecompetencies/developingnew products andservices and improvingcapabilities

take a long time tomaterialise

Re-aligning businessstrategies that havebecome inappropriate

Performance or Competitive

Benchmarking

key products andservices . Benchmarking partnersare

Drawn from the samesector. Often undertaken

Assessing relative level of performance in key areasor activities in comparisonwith others in the same

sector and findin wa s of

Type Description Most Appropriate forthe Following


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the FollowingPurposes

Functional Benchmarking

To benchmark withpartners drawn from

different businesssectors or areas of activity to find ways of improving similarfunctions can lead to innovationand dramaticimprovements.

Improving activities orservices for which

counterparts do notexist

External

Benchmarking

Involves analysingoutside organisationsthat are known to bebest in class. External benchmarkingprovides opportunitiesof learning from those

who are at the "leading"

Where examples of good practices can befound in other organisation s and there is a lack of good practices within internal

business units


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are there lessons to belearned from otherindustries


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Metro systems have grabbed the imagination of b l i I di


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urban planners in India

The Delhi Metro Rail Corporation

(DMRC), which implemented theMetro network ahead of schedule

Nearly three years ahead of schedule and on budget,

Now consultant for many projects

The corporation has also been aconsultant to Jakarta Mass Rapid

Transit System

in Indonesia. Of cials fromPakistan,

Ireland, Syria, Sri Lanka andVietnam have

also interacted with the DMRC.

UNCOMMON BUREAUCRAT

For lack of funds, he went overseas,tapping the Japan Bank of International

Cooperation for loans to cover 60% of the cost.

By comparison, it took the city of Kolkata 22 years to build its own metrobecause of a paucity of funds.

Looked world for top companies withextensive experience in the field.

Pacific Consultants International from Japan advised on the engineeringmatters, Korea's Rotem and Japan'sMitsubishi supplied the initial shipmentof coaches,

France's Alstom responsible for thedesign of the automatic train controlsystem.


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INTERNALANALYSIS

INTERNALANALYSIS

COMPARATIVEANALYSIS

COMPARATIVEANALYSIS

COMPREHENSIVEALANIYSIS

COMPREHENSIVEALANIYSIS


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ANALYSISANALYSIS VALU

ECHAIN

QUANTATIVEANALYSIS

HISTORICAL

INDUSTRYNORMS

BENC

HMARKING

BALANCESCORECARD

KEYFACTOR

ANALYSISANALYSIS VALUE

CHAIN QUANTATIVE

ANALYSIS HIST

ORICAL

INDUSTR Y NORMS

BENCH

MARKING

BALANCESCORE CARD

KEY FACTORRATING

ALANIYSISALANIYSIS VALUE

CHAIN QUANTATIVE

ANALYSIS HISTO

RICAL INDUSTRY

NORMS BENCHM

ARKING BALANCE

SCORE CARD KEY FACTOR

RATING

COMPREHENSIVE ALANIYSIS

COMPREHENSIVE ALANIYSIS


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BALANCE SCORE CARD

KEY FACTOR RATING

BALANCE SCORE


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BALANCE SCORE

CARD

Balanced Scorecard


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Balanced Scorecard A model integrating financial

and non financial measures. (Kaplan & Norton 1996)

Causal link between outcomes and performancedrivers of such outcomes

Translates the vision and strategy of a business unitinto objectives and measures in 4 distinct areas

Financial Customer Internal Business process Learning and growth

BALANCED SCORECARD KAPLAN &


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BALANCED SCORECARD- KAPLAN &NORTON

4 performance measures

Customer perspective

Internal business perspective

Innovation & learning perspective

Financial perspective


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The Balanced ScorecardPurpose of Balanced Scorecard :

A method of implementing a business strategy bytranslating it into a set of performance measures derivedfrom strategic goals that allocate rewards to executivesand managers based on their success at meeting or exceeding the performance measures.

BSC as a Measurement System


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BSC as a Measurement System

Financial

CustomerRelations

Learning,Innovation and

Growth

Internal ServiceProcess

Vision andStrategy

Casual link between the measures


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Financial Perspective

How do we look toour Shareholders?

CustomerPerspective

How do our customerslook at us?

Learning and GrowthPerspective

How can we continue toimprove?

Internal BusinessPerspective

What we must excelat?

BSC: Causal Relationships


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p

Internal Process

Customer

Strategy

Financial

Learning

Linking BSC and Strategy


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Strategic

Initiatives

Learning & GrowthDrivers Outcomes

Internal Process

Drivers Outcomes

Customer PerspectiveDrivers Outcomes

FinancialGoals

BALANCED SCORECARD-


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BALANCED SCORECARD-KAPLAN & NORTON

4 performance measures

Customer perspective

Internal business perspective

Innovation & learning perspective

Financial perspective


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The US Army was one of the first users of the

balanced scorecard - andstill uses it today, allround the world.

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The USACE and the


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The USACE and thebalanced scorecard

The US Army Corp of Engineers (USACE),

presence from Belize to

New Zealand,measures itsperformance across a

basket of strategicmeasures

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1. Translating the vision into operationalgoals;

2. Communicating the vision and link itto individual performance;

3. Business planning; index setting

4. Feedback and learning, and adjustingthe strategy accordingly.

AT LAST

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organisational apparaisal