McKinsey a very famous consultancy firm from U.S.A. assumed that effective organisational change may be understood to be a complex relationship between strategy, structure, style, system, skills, staff and super ordinate goals.
1. Structure:
Organizational structure determines the basis of relationship and activities of the members of the organization. Structure performs various major functions. It reduces external and internal uncertainties and forecasts about random behaviour of the individual and market forces.
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Structure provides an opportunity for departmentalisation, specialisation, and division of labour and delegation of authority. It also enables an organisation to keep its activities coordinated.
2. Strategy:
The concept of strategy includes purpose, mission, vision, objectives, plans, policies, goals. These form the basis of strategies and tactics of a company.
3. Systems:
Systems include work methodologies framed by employees of financial accounting system, HRD, Marketing, Training, Production Planning and Control System, Quality Management, Computerization. The various policies determine the systems and if there is a need to change in the system following technological up gradation or current economic development, the firm changes the policy accordingly.
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4. Style:
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Style is the most important agent of bringing change and fostering dynamism in the organisational functioning. Style of management, personnel policies are some of the important aspects which help to bring necessary changes in the functioning of management.
5. Staff:
Organization stands on the credibility and confidence of human force. Staffing involves placing right man in the right job.
6. Skills:
An effective organization requires up gradation of skills. Staff should be given adequate training and exposure for orientation and re-skilling etc. Skills help to promote core competency of an organisation.
7. Super Ordinate Goals:
Super ordinate goals from the main philosophy and broad spectrum of institution’s excellence. These goals are value oriented and meant to achieve certain objectives. This point is organization’s most important target point. This is the target which an organization wants to reach.