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Business Policy and Strategy

Organizational appraisal is the process of evaluating an organization's internal environment to identify strengths and weaknesses that could impact its ability to achieve goals. It involves assessing factors like personnel, operations, and work environment. This enables management to identify problems and ways to address them. The organizational appraisal process includes identifying important factors, assessing their importance, and evaluating strengths and weaknesses. It provides a foundation for strategic management by helping recognize strengths and weaknesses and overcome issues. An organizational capability refers to a company's ability to effectively manage resources like employees to gain a competitive advantage by meeting customer demand. Porter's value chain model describes how value is created within a company through primary activities like operations and outbound logistics, and support activities such as procurement,

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20 views

Business Policy and Strategy

Organizational appraisal is the process of evaluating an organization's internal environment to identify strengths and weaknesses that could impact its ability to achieve goals. It involves assessing factors like personnel, operations, and work environment. This enables management to identify problems and ways to address them. The organizational appraisal process includes identifying important factors, assessing their importance, and evaluating strengths and weaknesses. It provides a foundation for strategic management by helping recognize strengths and weaknesses and overcome issues. An organizational capability refers to a company's ability to effectively manage resources like employees to gain a competitive advantage by meeting customer demand. Porter's value chain model describes how value is created within a company through primary activities like operations and outbound logistics, and support activities such as procurement,

Uploaded by

varun raj
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Business Policy and Strategy

ORGANIZATIONAL APPRAISAL
Organizational appraisal is the process of monitoring an organization's internal
environment to identify strengths and weaknesses that may influence the firm's ability to
achieve goals. Appraisal of internal environment enables a firm to decide what it can do.
Organizational appraisal is the systematic evaluation of the internal environment of a.
firm in order to determine the strength and weaknesses that influences a firm's ability to.
achieve its goals.
Important aspects of organizational analysis include the assessment of external
elements that can influence the performance of an organization. An organizational
analysis also includes strategically evaluating an organization’s potential and resource
base.
Importance of Organizational appraisal
Organizational appraisal is the process of analysis the growth, personnel, operations,
and work environment of an entity. Organizational analysis is beneficial as it enables
management to identify areas of weakness, and then find approaches for eliminating
the problems.
Process of Organizational appraisal
1. Identification of Factors of Appraisal
2. Assessment of Importance of factors
3. Assessment of Strength and weaknesses
4. Preparing organizational capability profile.
5. Relating organizational capability to strength.
Role of organizational appraisal
1. It provide a strong foundation for strategic management
2. It helps to recognize the strength and weaknesses of the organization and help in
overcoming the weaknesses.
3. It helps the manager to identify and rectify the weaknesses of the people working
under them.
ORGANIZATIONAL CAPABILITY
An organizational capability is a company's ability to manage resources, such as
employees, effectively to gain an advantage over competitors. The
company's organizational capabilities must focus on the business's ability to meet
customer demand.
Porter’s Value Chain
Michael Porter’s Value chain concept is one of the most valued concept in today’s
market because the Value chain tells us how we can differentiate our products by
analyzing the chain of events which occur within our company.
The Porter’s value chain concept says that there is a chain of events which occur in a
company right from the procurement of raw materials to the delivery of goods as well as
the post sales service. This chain is made up of 9 steps.
The first 5 are the primary activities which are the basics in any company and are the
activities which provide strength and sustainability to the company. The remaining 4 are
the support activities or also known as the secondary activities and these are used by
the company for differentiation as well as maintenance of the organization.
1) Inbound logistics
Bring raw material from source to the company. The value chain can be enhanced in
this step by improving the quality of raw material as well as optimizing the cost of
inbound logistics.
2) Operations
Converting the raw material to finished goods is the job of Operations.
3) Outbound logistics
Sending finished goods from manufacturing point to distributors and retailers.
4) Marketing and sales
The marketing and sales apply push as well as pull strategy to increase the sales of the
product. The company exists to make profits and if profits can be increased by
marketing and sales, than the company has to use these tools.
5) Service
The post sales service is the most important because it directly affects the word of
mouth publicity of the product. If the service is not upto mark, no one will buy the
product and the brand will lose market share and may be taken out of the market
eventually. Thus service is very important in the Porter’s value chain.
6) Procurement
The management of vendors and the procurement of the raw material on a timely basis
is where procurement comes in.
7) Technology development
No product can survive if the company does not keep it updated as per the
latest technology.
8) Human resource management
The right people in the right place can make all the difference for the company and
hence the HR department is a support activity most important for the firm.
9) Firm infrastructure
Without a proper infrastructure, and lack of government handling or legal support, a firm
might face a big hurdle. Similarly, administration department will help in maintenance of
the facilities in a firm.

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