Organizational Analysis and

Design
MMPM 1
PERSONNEL MANAGEMENT CLASS – GROUP 2
 Organizational Analysis Defined
Organizational analysis is the process of reviewing the development, work
environment, personnel and operation of a business or another type of
association. (BusinessDictionary.com)

This review is often performed in response to crisis, but may also be carried
out as part of a demonstration project, in the process of taking a program to
scale, or in the course of regular operations.
 Organizational Analysis
Conducting a periodic detailed organizational analysis can be a useful way for
management to identify problems or inefficiencies that have arisen in the
organization but have yet to be addressed, and develop strategies for resolving
them.
Organizational analysis focuses on the structure and design of the organization
and how the organization's systems, capacity and functionality influence
outputs.
 Significance of Organizational Analysis
Undertaking an organizational analysis is helpful in assessing an organization's
current well-being and capacity, and deciding on a course of action to improve
the organization's long-term sustainability.

A restructuring of an Organization may become necessary when either external

or internal forces have created a problem or opportunity for improvement in
efficiency and effectiveness.
 Significance of Organizational Analysis
When performing an organizational analysis, many details emerge about the
functions and capacity of the organization. All of these details can make
pinpointing what is efficient and inefficient difficult.

Using theoretical organizational models can help sort out the information, and
make it easier to draw connections.
 Organizational Analysis Models
• Strategic Triangle Model
• SWOT model
• The McKinsey 7S Model
• Rational Model
• Natural System Model
• Sociotechnical Model
• Cognitive Model
• Meta Models
 Strategic Triangle Model

This model relies on three key calculations to determine the efficiency and
effectiveness of an organization.
• First, is the value, or mission, that guides the organization.
• Second, is operational capacity, the knowledge and capability to carry out the
mission.
• Third, is legitimacy and support, or the environment that authorize the value
of the organization, and offer support, (specifically financial support).
 SWOT Model
• A SWOT analysis (alternatively SWOT matrix) is a structured planning
method used to evaluate the strengths, weaknesses, opportunities and threats
involved in a project or in a business venture.
• It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and
unfavorable to achieve that objective.
• The degree to which the internal environment of the entity matches with the
external environment is expressed by the concept of strategic fit.
 SWOT Model
• Strengths: characteristics of the business or project that give it an advantage
over others.
• Weaknesses: characteristics that place the business or project at a
disadvantage relative to others.
• Opportunities: elements that the project could exploit to its advantage.
• Threats: elements in the environment that could cause trouble for the
business or project.
 SWOT Model
• First, the decision makers should consider whether the objective is attainable,
given the SWOTs. If the objective is not attainable a different objective must
be selected and the process repeated.

• Users of SWOT analysis need to ask and answer questions that generate
meaningful information for each category (strengths, weaknesses,
opportunities, and threats) to make the analysis useful and find their
competitive advantage.
 The McKinsey 7S Model
• The McKinsey 7S Framework emphasizes balancing
seven key aspects of an organization, operating unit,
or project.
• Three of the seven elements—strategy, structure,
and systems—are considered "hard" elements,
easily identified, described, and analyzed.
• The remaining four elements—shared value, staff,
skill, and style—are fluid, difficult to describe, and
dependent upon the actors within the organization
at any given time.
 The McKinsey 7S Model
• The 7S organizational analysis framework is based on the premise that all
seven elements are interdependent, and must be mutually reinforcing in
order to be successful.
• Changes in a single element can result in misalignment and dysfunction
throughout the organization, disrupting organizational harmony.

- Robert H. Waterman et.al - "Structure Is Not Organization".

 Rational Model
• The rational model views organizations as a mechanism that is made up of
various parts that can be modified in order to create an output in the shortest
amount of time and without deviation.
• The rational model stems from the Frederick W. Taylor's (1911) Structural
Perspective. It was Taylor's stance that organizations should be as
mechanistic and efficient as possible.
 Natural System Model
• The Natural System model views organizations as an organic organism
which is holistically interconnected.
• The parts of the organization are not seen as independent units but rather as
a whole that can orchestrate together to prepare for inevitable change.
• The natural system model is in many ways the opposite of the rational model
in that it focuses on the activities that may negatively impact the organization
and therefore aims at maintaining an equilibrium in order to meet its goals.
 Sociotechnical Model
• The sociotechnical model, also known as Sociotechnical Systems (STS), is an
approach to complex organizational work design that recognizes the
interaction between people and technology in workplaces.

• The term also refers to the interaction between society's complex

infrastructures and human behavior. This model identifies the environment
as a key factor that interacts with the organization.
 Cognitive Model
• Behavior, cognitive, and other personal factors as well as environmental
events, operate as interacting determinants that influence each other
bidirectionally.
• Personal goals of the managers and staff are seen as assisting in the effort
toward organizational objective attainment.
• Decision making processes are focused on and specialization is deemed as
important to the flow of information.
 Meta Models
• Based on a theorized blindness of a single perspective, Lee Bolman and
Terrence Deal have designed a model that splits analysis into four distinct
paradigms.

• These 'frames' are to be used as a pluralistic model, and therefore allow

analysts to change thinking by re-framing understanding and points of
reference.
 Meta Models
1. Structural Frame. Here organizations are to be understood by role
definitions and clear hierarchy. Problems come from overlapping
responsibilities and unclear instructions. The assumptions are similar to the
rational model shown above and Taylorism.
2. Human Resource Frame. According to this frame organizations exist to
serve society, they are places for growth and development. Problems come
from when people are not motivated or trained sufficiently.
 Meta Models
3. Political Frame. This frame posits that organizations are cutthroat jungles,
where only the strongest survive. Problems come from poor power
coalitions or overly centralized power.
4. Symbolic Frame. This frame supposes that organizations are deeply
symbolic and successful business is about the representation genuine
meaning. Problems occur when actors fail to play their parts.
 Organizational Structure
• How an organization is structured depends on the coordinating mechanism
used to produce the product or service.

• Henry Mintzberg outlines five ways to consider labor division:

 Organizational Structure
Henry Mintzberg outlines five ways to consider labor division:
1. Simple Structure: Direct Supervision with little specialization
2. Machine Bureaucracy: Standardization of work with horizontal and
vertical specialization
3. Professional Bureaucracy: Standardization of skills with horizontal
specialization
4. Divisional Form: Standardization of outputs with some horizontal and
vertical specialization (mainly between divisions)
5. Adhocracy: Mutual adjustments with much horizontal specialization
End of the Report

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