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Organisational Appraisal
Ankit BakshiAditya SharmaSahil Mahajan
Ankush SharmaAditya Mahajan
Organisatonal Appraisal
Dynamics Of Internal Environment
Organisational ResourcesOrganisational BehaviourStrength & Weaknesses
CompetenciesOrganisational Capability
Strategic competitive Advantage
Organisational Capability Factors
Organisational capability factors are the strategic strengths and
weaknesses existing in different functional areas within an
organisation ,which are of crucial importance to strategy formulation
and implementation.
Functional/Capability Areas Include
Finacial CapabilityMarketing CapabilityOperations CapabilityPersonnel Capability
Information Management CapabilityGeneral Management Capability
Financial Capability
Relates to the availability ,usages and management of funds and all allied aspects that have a bearing on Organisation’s capacity and
ability to implement its strategies.
Factors influencing Financial Capability
Related to sources of Funds: Capital Structure , Procurement of capital,
Working capital etc.Related to usage of Funds:
Capital investment,current assets,relationship with shareholders etc.
Related to Management of funds:Financial Accounting and Budgeting
systems,management control,Tax olanning etc.
Marketing Capability
Relates to the pricing, promotion & distribution of products &
services,and all allied aspects that have a bearing on Organisation’s
capacity and ability to implement its strategies.
Factors influencing Marketing Capability
Product related factors:Variety,differentiation, mix quality,
positioning,packaging etc.Price related factors:
Pricing objectives,policies,changes.etcPlace related factors:
Distribution,logistics & transportation etc.Promotion related factors:
Promotional tools,sales promotion,advertising etc.
Operations Capability
Relate to the production of products,use of material resources
and all allied aspects that have a bearing on Organisation’s capacity
and ability to implement its strategies.
Factors influencing Operations Capability
Related to the Production system:Capacity,location,layout,product design
etc.Related to operations & control:
Aggregate production planning,material supply etc.
Related to R&D system:Personnel facilities,product
development,patent rights etc.
Personnel Capability
Relate to the existence & use of human resources & skills, and all
allied aspects that have a bearing on Organisation’s capacity and ability to
implement its strategies.
Factors influencing Personnel Capability
Related to Personnel system:System for manpower
planning,selection,development,compensation etc.
Related to Organisational & Employee characterstics:
Corporate image,quality of managers,working conditions etc.
Related to Industrial Relations:Collective bargaining,Safety,welfare & security
Information Management Capability
Related to design & management of flow of information from outside
into,and within an organisation for the purpose of decision making and all allied aspects that have a bearing
on Organisation’s capacity and ability to implement its strategies.
Factors influencing IM CapabilityFactors related to acquistion & retention of
Information:Sources,quantity,quality & timeliness of
information.Factors related to processing of information:Database management,computer system &
software capability.Factors related to retreival & usage of
Information:Availability & appropriateness of
information formats.
Considerations in Organisational Appraisal
Factors affecting Organisational Appraisal
The Size of the organisation affects the quality of appraisal.
If the internal environment of an organisation is vitiated owing to opposing political forces &
power games,the quality of appraisal is likely to suffer.
Approaches
Systematic ApproachAdhoc Approach
Sources of Information
VerbalWrittenInternalExternal
Method & techniques for OA
Internal AnalysisVRIO framework
Value chain analysisQuantitativeQualitative
Internal Analysis