Presentation on theme: "Organization appraisal (Internal Environmental Analysis)"— Presentation transcript:
1 Organization appraisal (Internal Environmental Analysis) Internal environment provides an organization with the capability to capitalize on the opportunities or protect itself from the threats that are present in the external environment.“Internal Environment analysis provide the information about the strengths and weaknesses of the organization”
2 Factors to be Analyzed in Organizational Appraisal Strategic AdvantageOrganizational CapabilityCompetenciesSynergistic EffectStrengthsWeaknessesOrganizational ResourcesOrganizational Behavior
3 Organizational Resources Tangible(physical) resourcesTechnology, plant and equipment, raw material, financial resources, infrastructure , etcIntangible(Human)resourcesKnowledge, skill, innovative capacity, experience, training of Human resource
4 Organizational Behavior Organizational behavior create ability for, or place constraint in the usage of resourcesIt includes quality of leadership, management philosophy, shared values and culture, quality of work environment and organizational climate, organizational politics and policies, use of power, relationship and group norms etc.“Organizational resources and organizational behavior collectively produce strengths and weakness”
5 Strengths and Weaknesses Organizational resources and behavior combine in complex fashion to create strengths and weaknesses within internal environment of an organizationStrengthIt is an inherent capability which an organization can use to gain strategic advantage.WeaknessIt is an inherent limitation or constraint which creates a strategic disadvantage for an organization
6 Synergistic EffectsStrengths and weaknesses combine in a variety of ways and produce synergic effects.For instance two strong point in a particular functional area add up to something more than double the strength.Two weaknesses acting in tandem result in more than double the damage.ExampleIn marketing, the synergic effect occur when the product, pricing, distribution, and promotion resulting high level of marketing synergy.
7 CompetenciesOn the basis of its resources and behavior, an organization develops certain strengths and weakness which when combined lead to synergistic effects. Such effects manifest themselves in terms of organizational competencies.Competencies.Are special qualities possessed by an organization that make them withstand pressure of competition in the marketplaceMany organization achieve strategic success by building distinctive competencies around CSFs(critical success Factor)ExampleSuperior product quality in a particular attribute, say, a two wheeler. Which is more fuel efficient than its competitor productsCreation of a market niche by supplying highly specialized products to a particular market segment.
8 Organizational capability It is the inherent capacity or potential of an organization to use its strengths and overcome weaknesses in order to exploit opportunities and face threats in its external environment.Types of capabilitiesFinancial capabilityMarketing CapabilityOperations CapabilityPersonnel CapabilityGeneral Management Capability
9 Consideration in Organizational Appraisal 1. Factors affecting Organizational Appraisal2. Approaches to Organizational AppraisalFactors affecting Organizational AppraisalApproaches to Organizational Appraisal