Essay on Strategic Organizational Analysis
Strategic Organizational Analysis involves evaluating how the institution is strategically set to achieve its predetermined goals. It involves evaluating the current marketing capability, production capacity, human resource, organizational structure and research and development capability. In may also involve evaluating these variable with reference to other firms operating in the same industry. This is what makes it strategic.
Many institutions exist without evaluating their progress to determine problems within. When problems arise in such organisations, they may be placed in complex situations. However, such problems could have been prevented if a careful analysis was done on regular basis. This paper looks at the different approaches undertaken in Strategic Organizational Analysis and also analyses the importance of it to an institution.
Strategic Organizational Analysis may be done using business techniques like rational model, socio technical model, cognitive model and the natural system model. It can be internal or external. However, the two forms of analyses are correlated in one way or another. The information obtained from internal analysis may also be used in the external analysis.
It is important because the company in question is able to determine how much efforts have been made towards achieving its desired goals. This is done by comparing the current position with the position or situation before and the expected outcome or situation in the institution. For example, if in the beginning of the fiscal year the company’s management had targeted 50 % increase in the sales, management can undertake Strategic Organizational Analysis any time within the year say quarterly to determine if the current strategies will eventually realize the target results. If is done quarterly, then the increase in the sales made within the period of the three months is projected for the next three periods to determine the year’s total sales and sales increment.
It helps a firm determine how effective or ineffective it is operation as compared to other firms in the industry or across the industry. This may call for strategic benchmarking. The benchmarks are what are used to evaluate the performance of the institution. For example; human resource evaluation from a performance appraisal exercise can help an institution realize the capacity of the existing work force and where necessary, it may decide to hire new workforce or train the existing work force.
Considering the marketing position, the firm can monitor its effort, how effective they and compare them to rival firms or other successful firms. The information from this comparison may facilitate change by modifying the current marketing strategies to match or outfit those of the rival firms in the industry. This process is important as the company can re-adjust its strategies to meet the expected targets. For example; The Company can change the marketing strategies where the current strategies prove not to be facilitating the achievement of the desired goals.
Strategic Organizational Analysis helps an institution evaluate its current position as relates to marketing, human resource, organization structure and R&D capacities or competences. It helps in change implementation and management. It helps identify problems within the institution which can be changed to better the performance of the institution.