Answer 2.

Introduction

Organizational analysis, in management science, the study of the processes that characterize all
kinds of organizations, including business firms, government agencies, labor unions, and voluntary
associations such as sports clubs, charities, and political parties. Any organization is a social unit
with three properties: (1) it is a corporate (or group) actor, (2) it claims a special and limited
purpose (such as making profits or providing medical care), and (3) its creators intend it to last
beyond the accomplishment of a single action, if not indefinitely.
Modern cultures are marked by an increase in the importance, influence, and power of
organizations. Consequently, contemporary studies in social science and management have
emphasized the analysis of organizations. Yet much of the research is narrowly focused on the
properties associated with particular types of organizations, such as hospitals, prisons, government
agencies, businesses, schools, and churches. While many of its findings are associated with
business management, the field of organizational analysis is far more general: it studies the
processes that apply to all kinds of organizations. One goal of such inquiry is the identification of
more-effective management strategies. See also business organization.

Which type of technique is VRIO?

Organizational analysis aims at capitalizing strengths, overcoming weaknesses and formulating

strategies for achieving a competitive advantage. There are various techniques that are used for
analyzing the internal environment of an organization. VRIO framework is a technique used as
internal analysis techniques for organizational Analysis.
VRIO is an acronym for a four-question framework of value, rarity, imitability, and organization.
 The VRIO framework is a strategic analysis tool designed to help organizations uncover and
protect the resources and capabilities that give them a long-term competitive advantage. The
framework should be put into play after the creation of a vision statement, but before the strategic
planning process. Why? The differentiators and advantages we will identify to determine how to
approach the marketplace and inform strategic decisions that shape the fate of the company.

VRIO Analysis for Hitech Solutions Ltd.

Hitech Solutions Ltd.’s capability evaluated using VRIO framework:

Hitech Solution VRIO capability

Hitech Solutions Ltd.’s ability to manage their people effectively is a source of both differentiation
and cost advantages. Unlike other companies, they have to rely on trust and relationship in people
management, to manage their employees. This capability allows making correct (data based)
decisions about which people to hire and the best way to use their skills. As a result, Hitech
Solutions is able to hire innovative employees that are also very productive and from them Hitech
can generate high revenues. Besides being valuable, it is also a rare capability because no other
company uses data based employee management so extensively? It is costly to imitate, at least, in
the near future. First, companies should build the highly sophisticated software, which is both
costly and hard to do. Second, HR managers should be trained to make data based decisions and
forget their old management methods. Is Hitech Solutions organized to capture value from this
capability? Certainly, this organization has trained HR managers that know how to use the data
and manage people accordingly. It also has the needed IT skills trained employees to collect and
manage the data about its employees.

Historical Analysis for Hitech Solutions Ltd.

Historical analysis one way to compare performance and identify strengths and weakness is to start
with the historical analysis of one’s own organization over a period of time. Continuous
improvement can be measured through historical analysis.
Historical analysis couples the study of sources with critical thinking. It involves the extensive
research of pertinent written records, data, artifacts, visiting and participating in the excavation of
historic sites as well as other sources, then developing conclusions based on that evidence rather
than blindly accepting those presented by other historians. Revisionist history is a result of this
process.

When applying historical analysis one must take care to avoid viewing prior events through
“modern eyes”. To formulate accurate conclusions the historian must consider and account for
cultural changes in the researched society such as values, mores, traditions, and other social factors
that have occurred since the era being analyzed.

If management choose to do Historical analysis they have to go for Comparative analysis like as
depicted below:

Historical Analysis will depends upon the various factors and interpretations as follows:

Difference between facts and interpretations.

Fact -- something undeniable. Used as evidence.
Interpretation -- an explanation based on information or personal experiences.
Hold interpretations as tentative. They can change!

Multiple perspectives.

Compare differing sets of ideas, values, personalities, behaviors, and institutions.

Evaluate debates among historians.
Compare competing historical narratives.

Cause and effect

Challenge arguments of inevitability.

Hypothesize the influence of the past.
Conclusion
Thus after using these techniques of organizational analysis Hitech Solution Ltd can et know their
organizational condition, their employees skills, uses and resources reliability also know the
reasons of getting down the performance of organization. These organizational techniques can
create a continuous cycle of improvement whereby all strategies are planned, implemented,
evaluated, improved and monitored. Also organization will put attention to regularly enhance
employee skills to meet evolving market requirements. Through organizational techniques
implementation innovation and productivity, efficiency and profits are increased. Costs are also
reduced by minimizing employee turnover and absenteeism.

Answer 3.a)
Organizations are set up in specific ways to accomplish different goals, and the structure of an
organization can help or hinder its progress toward accomplishing these goals. Organizations large
and small can achieve higher sales and other profit by properly matching their needs with the
structure they use to operate.
Organizational Structure Types

 Line Organization:
Line organization is the simplest and oldest form of organization structure. It is called as military
or departmental or scalar type of organization. Under this system, authority flows directly and
vertically from the top of the managerial hierarchy ‘down to different levels of managers and
subordinates and down to the operative level of workers.

The line organization structure is given below:

Example: Military, religious, and even academic organizations use this organizational structure in
past. In this way, one area doesn’t interfere with the work of another, and the staff only obeys the
‘orders’ of the immediate superior.

 Line and Staff Organization:

This type of organization structure is in large enterprises. The functional specialists are added to
the line in line and staff organization. Mere, staff is basically advisory in nature and usually does
not possess any command authority over line managers. “Line functions are those which have
direct responsibility for accomplishing the objectives of the enterprises and staff refers to those
elements of the organization that help the line to work most effectively in accomplishing the
primary objectives of the enterprises.”

In the line and staff organization, staffs assist the line managers in their duties in order to achieve
the high performance. So, in an organization which has the production of textiles, the production
manager, marketing manager and the finance manager may be treated as line executives, and the
department headed by them may be called line departments.

A line and staff organization chart is given below:

Example: Organizational structure examples of this type include insurance companies,

engineering firms, law firms, regulatory agencies, etc. In other words, organizations that need
isolated technical advice to assist employees who handle or manage the day-to-day operations on
the front line.

 Project Organizational Structure:

 The line, line and staff and functional authority organizational structures facilitate establishment

and distribution of authority for vertical coordination and control rather than horizontal

relationships. In some projects (complex activity consisting of a number of interdependent and

independent activities) work process may flow horizontally, diagonally, upwards and

downwards. The direction of work flow depends on the distribution of talents and abilities in
the organization and the need to apply them to the problem that exists. The cope up with such

situations, project organizations and matrix organizations have emerged.

Example: Highly dynamic and creative companies – such as software

developers, architecture firms, special industrial equipment installation projects and event

organization companies – typically use this structure.

 Matrix Organizational Structure:

It is a permanent organization designed to achieve specific results by using teams of specialists
from different functional areas in the organization. The matrix organization is illustrated in
Exhibit
Example: A business area that would benefit from this type of organizational hierarchy is
consultancy for ERP Software installation.

Answer 3.b)

Introduction
Historians and academics have observed that organizations, like living organisms, have life cycles.
They are born (established or formed), they grow and develop, they reach maturity, they begin to
decline and age, and finally, in many cases, they die. Study of the organizational life cycle (OLC)
has resulted in various predictive models. These models, which have been a subject of considerable
academic discussion, are linked to the study of organizational growth and development.
Organizations at any stage of the life cycle are impacted by external environmental circumstances
as well as internal factors. We're all aware of the rise and fall of organizations and entire industries.
Products too have life cycles, a fact that has been long recognized by marketing and sales experts.
It seems reasonable to conclude that organizations also have life cycles.

Five Stages of the Organizational Life Cycle?

Generally, there are five stages to an organization's life cycle

 Stage 1: Existence: Commonly known as the birth or entrepreneurial stage, “existence”

signifies the start of an organization’s expansion. The main importance is centered on the
acknowledgement of having an adequate number of customers to keep the organization or
business active.
 Stage 2: Survival: At this stage, organizations look to pursue growth, establish a framework
and develop their capabilities there is a focus on regularly setting targets for the organization,
with the main aim being to generate sufficient revenue for survival and expansion. Some
organizations enjoy adequate growth to be able to enter the next stage, whilst others are
unsuccessful in achieving this and consequently fail to survive.
 Stage 3: Maturity: This stage signifies the organization entering a more formal hierarchy
of management (hierarchical organization). A frequent problem encountered at this stage
would be those associated with “Red Tape”. Organizations look to safeguard their growth as
opposed to focusing on expansion. Top and middle level management specialize in different
tasks, such as planning and routine work respectively.
 Stage 4: Renewal: Organizations experience a renewal in their structure of management, from
a hierarchical to a matrix style, which encourages creativity and flexibility.
 Stage 5: Decline: This stage initiates the death of an organization. The decline is identified by
the focus on political agenda and authority within an organization, whereby individuals start
to become preoccupied with personal objectives, instead of focusing on the objectives of the
organization itself. This slowly destroys the functionality and feasibility of the entire
organization.

Example of IKEA who passed through Organizational Life Cycle

IKEA furniture and home accessories are practical, well designed and affordable. It is
established in 1943 in Sweden by Ingvar Kamprad
Conclusion
The Organizational Life Cycle illustrates 5 stages companies can go through as they grow. The
stages include Start-up, Growth, Maturity, Revival and Decline. Much like the Product Life Cycle,
the strategies, objectives, organization, threats and opportunities of the firm vary significantly by
stage and also affects the product development and delivery organizations.