It is essential for any company to understand how the organization works or will work in the future in order to comprehend the internal strengths and weaknesses and also be prepared for an upcoming scenario.
An Organization is defined as a system of consciously coordinated activities or forces of two or more persons. (Barnard, 1938)
a rational system
Collectivities oriented to the pursuit of relatively specific goals
a natural system
Energies devoted to the pursuit of system goals, chief among which is the concern to survive (Scott)
an open system
All systems are characterized by an assemblage or combination of parts whose relations make them interdependent (Scott)
On The Business Zoom we advise our readers to do an internal analysis of the Organization having in consideration the McKinsey 7 S’s model which addresses all the specific points of the internal behavior within a Company.
The 7 S's Model
(McKinsey, Waterman et al. 1980)
An organization works through a mechanism of 7 factors which are mutually interconnected and drive the firm’s operations. In the following image we can see the 7 elements as a cohesive and interconnected system. This model is called as the 7 S’s Model because the 7 important factors that we are talking about start all with a “S”. Let’s begin by describing each one and highlighting the models that make part of the factors and are explained along the website to provide a better and more detailed analysis:
-Models: Simple; Functional; Divisional Product-based; Multidivisional; Team-based Divisional Structure for Product; Divisional Geographically-based; Divisional Market-based; Matrix Structure; Greiner’s Model.
-Models: Minzberg’s 5Ps; Resource-based View (VRIO Model); SWOT Analysis; Strategy Clock; Ansoff Matrix; BCG Matrix; GE Matrix; Acquisition-, Merger- and Alliance Strategies; Porter’s Shared Value Model; Crowdsourcing Strategy; Villarroel’s Model; Network Externalities; Lock-in Effect and Switching Costs; David Teece’s Model; The 5 Competitive Strategies.
-Model: Porter’s Value Chain Model.
- Superordinate Goals
-Models: Mission Statement.
-Models: Schein’s Model; Hofstede’s 5 Dimensions.
-Model: Human Resources Process Model.
Let’s put our hands to work and analyze the first subject and its models namely the Structure.