MGMT495 UNIT 1 INTELLIPATH (TOOLS FOR ORGANIZATIONAL ANALYSIS)
Introduction
As companies grow and become more complex, there are a number of tools that can be
incorporated for analysis. Companies that continually analyze their environments are more
likely to discover and correct problems quickly and efficiently. This lesson discusses tools for
organizational analysis, including the following:
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SWOT analysis
McKinsey 7S model
Rational model
Cognitive model
Learning Materials
Strategic Triangle Model
Quite often, operational systems in public service are overlooked. However,
one theory that focuses on operations in government and public service is
the strategic triangle model (Moore, 1995). In 1995, Mark Moore presented
the strategic triangle as an organizational analysis tool that looks at public
value. The model asks the following three specific questions:
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Is it administratively and operationally possible?
Is it politically and legally possible?
Is the purpose publicly valuable?
These three questions help to determine authorization, resources, and value.
These questions are meant to understand how to improve operating
capacity, using both downward and upward support and purpose as well for
judging the value of the imagined purpose.
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The interesting thing about this model is that it also applies to private
business, especially if the company wants to understand how it is
contributing to society. Today’s organizations are finding that the
communities are part of the stakeholder groups that have an interest. More
of today’s companies are focusing on environmental social sustainability to
give back in a way that protects all stakeholder groups plus the environment.
SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities, and threats.
A SWOT analysis is a summary of the internal and external environment
scanning. The strengths and weakness are identified in the internal
environment.
A common error made when conducting a SWOT analysis is assessing only the factor being
considered. A firm does not operate in a vacuum. Hence, when assessing something as a
strength or weakness, it must also be as compared to its competition. For example, if financial
resources are a weakness for a firm, but all of its competitors are equally weak in that area, then
financial resources are not a weakness on the SWOT analysis.
SWOT Factors: Definitions
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Strength: If the firm is better at, faster at, has lower cost than, or of
higher quality than its competitors.
Weakness: If the firm is slower, more expensive, or of poorer quality
than its competitors.
Opportunity: Only if it is something outside the control of the firm
that can affect both the firm and its competitors in a favorable way.
Threat: If it is something outside, the control of the firm that can
affect both it and its competitors in an unfavorable way.
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Proper identification of strengths, weaknesses, opportunities, and threats is
important to avoid an organization wasting valuable time and resources. For
instance, consider a firm that identifies customer service as a strength.
Based on that classification, it markets superior customer service to the
public and takes no action to improve it because the firm already thinks it is
a strong point. However, if the firm’s customer service is no better than its
competitors, the marketing message might not play well to the target
market. Also, the firm was not taking any action to improve customer
service, when making it better would have given it a competitive advantage.
Additional Resource: Video
Watch the following video to learn how to complete a SWOT analysis (Alanis
Business Academy, 2012):
https://youtu.be/0D2fT6obqdg
McKinsey 7S Framework
The McKinsey 7S framework looks at the organization through seven different areas that need
to be aligned to determine success in the company. These seven elements are as follows:
These elements are then separated into two areas—hard and soft
elements. Hard elements include the following:
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Strategy
Structure
Systems
Soft elements include the following (Waterman, Peters, & Phillips, 1980):
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Style
Shared values
Skills
Staff
The model can help a company figure out where it may be having
performance problems that need to be addressed and changed (van Vliet,
2013). However, there are also obstacles that must be overcome in the
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process, such as resistance to change. The model is useful in identifying
those problem areas within the organization.
Rational Model
The classic model for analyzing organizations is the rational model,
pioneered in the early 1900s by Frederick Taylor. This model draws partially
from the ideas of sociologist Max Weber and is still used today. As the
word rational indicates, according to this model, the organization works in a
sensible, reasonable way as a whole. All of its actions are coordinated to
achieve a set of specific outcomes, like a machine that only does what it is
supposed to do for a specific purpose. The model is also rational in the sense
that observations about an organization’s structure are made based on a
rational or scientific assessment of its goals, needs, and external influences.
Taylor calls this process of modeling and assessment scientific management.
In such a model, the parts of the organization fit together in a way that is
consistent and makes sense, and they all work toward the same outcome.
Roles are strictly defined, and power is centralized. Any one element of the
organization is less important than the way it fits into the whole; each part is
viewed as working with the others toward a common end.
A rational model for the organization cannot always be fully realized because
the human parts that make up the organization often complicate the
rationality of the whole. Such a model works best as a guide for managers
when goals are aligned well and there are plenty of resources, allowing
departments to function together smoothly rather than competing. Some
thinkers have questioned this model, especially as it applies to organizations
where roles are more fluid and authority is decentralized.
Cognitive Model
Anderson (1990) presented the model of cognitive architecture, or
the Adaptive Control of Thought–Rational (ACT–R) to understand those
factors that make up human cognition. The concept aligns with the rational
model but also looks at areas such as symbolism. The environment
essentially plays a big role in this concept, although an infrastructure of
intelligence is the overall goal. For example, environmental factors can be as
simple as too much coffee, a stressful environment, or dysfunctional conflict.
These types of environmental factors disrupt mental abilities, leading to poor
performance or decision making. According to Anderson (1990), motivation
for ACT–R includes the following areas:
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Philosophy
Psychology
Education
Technology
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Neuroscience
Use of ACT–R is seen in fast-paced, highly complex organizations. One
variation on this model is this company, which uses technology such as
gaming to assist employees in development of brain function such as
memory (Google DeepMind, 2015).
QUESTIONS AND ANSWERS
If you see a question with multiple answers, it means that a question was asked multiple times and
there were different answers each time
1. Which of the following elements is included in Taylor’s rational model?
a. Everyone works toward the same outcome
2. What is one of the factors in Moore’s strategic triangle?
a. Resources operational capacity
3. If you are not accurate in identifying the strengths, weaknesses, opportunities, and
4.
5.
6.
7.
8.
9.
10.
threats, your SWOT analysis might be
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a. A waste of time
According to the cognitive model of analysis, which of the following is an example of
environmental factors that may influence performance?
a. Too much caffeine
Although there are many tools that a company can use to measure how it is doing, one
analysis requires the company to do an external and internal scan through a SWOT
analysis. What is analyzed with this model?
a. Threats
The strategic triangle model focuses on public entities such as the government and
nonprofit businesses. What question does the model use to determine the value of an
organization to public service?
a. Is it administratively and operationally possible?
The strategic triangle model can be used in what sector?
a. Nonprofit organization
The McKinsey 7S model looks at the organization through seven different
areas, including __________.
a. Style
The strategic triangle model looks to determine if the organization provides public value.
Several questions are asked to determine __________.
a. Authorization
What is true about the rational model for analyzing organizations?
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a. Observations about an organization’s structure are made based on a rational,
scientific assessment of goals, needs and external influences.
11. A strategy that some organizations are using today is to focus
on
sustainability, and this is beneficial in protecting
community stakeholders.
a. Environmental social
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