Organisational Appraisal

Ankit Bakshi Aditya Sharma Sahil Mahajan Ankush Sharma Aditya Mahajan

Organisatonal Appraisal

Dynamics Of Internal Environment

Organisational Resources Organisational Behaviour Strength & Weaknesses Competencies Organisational 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 Capability Marketing Capability Operations Capability Personnel Capability Information Management Capability General 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.etc Place 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.

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

Factors influencing Personnel Capability

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 Capability

Factors 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 Approach Adhoc Approach

Sources of Information
Verbal Written Internal External

Method & techniques for OA

Internal Analysis VRIO framework Value chain analysis Quantitative Qualitative

Internal Analysis