7 s frame work and decision making

8/8/2019 7 s Frame Work and Decision Making

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TOPICS

7S FRAMEWORK (BY

MCKINSEY'S).

DECISION MAKING.


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7S FRAMEWORK (BY MCKINSEY'S)

HISTORY-

It was first mentioned in "The Art Of Japanese

Management" by Richard Pascale & Anthony Athos in

1981.

At around the same time, Tom Peters & Robert

Waterman were exploring what made a company excellent.

The 7 S model was born at a meeting of these four authors

in 1978.

It was taken up as a basic tool by the global

management consultancy company McKinsey.


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WHAT IS THE 7S FRAMEWORK?

It is a management model that describes 7factors to organize a company in an holisticand effective way.

Together these factors determine the way inwhich a corporation operates. Managersshould take into account all seven of these factors,to be sure of successful implementation of a

strategy. Large or small.

They're all interdependent, so if you fail to payproper attention to one of them, this may effect allothers as well. On top of that, the relativeimportance of each factor may vary over time.


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MCKINSEY 7S MODEL


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THE SEVEN ELEMENTS

Hard Elements

Strategy

Structure

Systems

Soft Elements

Shared Values Skills

Style

Staff


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ELEMENTS DESCRIPTION

STRATEGY-Strategy is the plan of action an

organisation prepares in response to, or

anticipation of, changes in its external

environment.


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TO BE CONT

STRUCTURE: The framework in which the

activities of the organization's members are

coordinated. The four basic structural forms

are the functional form, divisional structure,

matrix structure, and network structure.

SYSTEM: Organization has some systems orinternal processes to support and implement the

strategy and run day-to-day affairs.


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TO BE CONT..

STYLE: The way the managers behave.The culture of organization.

STAFF :The people who makes the real

difference to the success of organization.


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TO BE CONT.

SHARED VALUE : All members of the organisationshare some common fundamental ideas or

guiding concepts around which the business isbuilt.

SKILL: The actual skills & competencies of theemployees working for the company.


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BENEFITS OF THE MODEL

Improves the performance of a company.

Examines the likely effects of future changes

within a company.

Align departments & processes during a

merger or acquisition.

Determines how best to implement a

proposed strategy.


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DRAWBACKS

The external environment is not mentioned inthe McKinsey 7S Framework, although theother variables do exist & that only the most

crucial variables are depicted in the model.

The notion of performance or effectiveness is

not made explicit in the model.


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NEXT TOPIC IS

DECISION MAKING


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DECISION MAKING

DEFINITION- Management decision making involvesan entire process of making goal, designing task,searching for alternating and developing plans in

order to find the best solution to the decisionproblem.

THE ELEMENTS OF A DECISION MAKING PROCESS-

The decision maker.

The decision problem. The environment in which the decision is to taken.

Objectives of the decision maker.


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THE ELEMENTS OF A DECISION

MAKING PROCESS-

The available alternative course of action.

The outcome expected from variousalternative.

The final choice of the alternative taken.


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CHARACTERISTICS OF DECISION

MAKING-

It is a process of selecting the best alternative.

It is always related to oriented process.

It is always related to environment. It involves all action like defining the problem.

Decision is the end product.


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DECISION MAKING PROCESS-

Defining the problem.

Indentify evaluation criteria.

Model building. Evaluation results.

Taking final decision.

feedback or following up decision.


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TECHNIQUES OF DECISION MAKING-

Scientific management techniques.

Human relation techniques.

Empirical techniques. Financial model techniques.

Mathematical model techniques.

Decision theory techniques.

Decision support system.


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CLASSIFICATION OF DECISION

Organization and personal.

Routine and strategic.

Programmed and non- programmed. Policy and operative

Individual and group.

Major and minor.

Long- term departmental and non- economic.


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EVALUATING THE ALTERNATIVE:

Both the tangible and intangible factors must

be weighted while deciding upon a course of

action.

PRINCIPLE OF LIMITED FACTOR:

Primary attention must be given to those

factor that are limiting or strategic to the

decision involved.


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BASES FOR SELECTION FROM

ALTERNATIVE

Experience

Experimentation.

Research.

DIFFICULTIES IN DECISION MAKING

Incomplete information. Unsporting environment.

Incorrect timing.


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7 s frame work and decision making

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