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