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While some models of organizational effectiveness go in and out of fashion, one that has
persisted is the McKinsey 7-S framework. Developed in the early 1980s by Tom Peters and
Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the
basic premise of the model is that there are seven internal aspects of an organization that need to
be aligned if it is to be successful.
The 7-S model can be used in a wide variety of situations where an alignment
perspective is useful, for example, to help you:
The McKinsey 7-S model can be applied to elements of a team or a project as well. The
alignment issues apply, regardless of how you decide to define the scope of the areas you study.
The 7’s model is mainly distinguished into hard S’s and Soft S’s.
The hard elements are feasible and easy to identify as they can be found in a strategy
statement, corporate plans, organisational charts ad other documentation of company.
They include : 1) Strategy
2) System
3) Structure
The soft elements are basically feasible because of difficulty involved in describing them
as capabilities, value and element of corporate culture frequently developing and
changing. They include:
1) Style
2) Staff
3) Skill
4) Shared Values
3.1. STRATEGY
A strategy is the determination of the basic long term goals and objectives of an enterprise
and the adoption of course of action and allocation of resources necessary for carrying out the
goals
3.2. Structure
Structure is the basis for specialisation and co-ordination influenced primarily by strategy
and organization activities are divided grouped and coordinated the relationship between
personnel in the organization is a formalized intentional structure of roles and positions in the
organization.
It refers to the hierarchical flow within the organization. It tells about the authoritative power
in organization. The design of organizational structure is a critical task of the top management of
an organization. It is the skeleton of the whole organizational office. Organizational structure
refers to the relatively more durable organizational arrangements and relationships.
Organizational Structure
Board of director
Managing director
Executive V P President
Vice president
Sales head
Area
Territory
National
manager
manager Territory
National
Area manager
manager Territory
National
Area manager
manager Territory
National
Area manager
manager
Functions of sales & Service Departments:
Vice president