Inplant Training[1]

Part A

1. Industry Profile Industry refers to all the companies put together in a

particular field of activity at national / international level

E.g. BHEL is a company, Industry refers to electrical power generating company collectively at national and international level

2. Company Profile a. Background and inception of the company b. Nature of the business carried. c. Vision, Mission, and Quality policy. d. Product/service profile e. Area of operation-Global/National/Regional f. Ownership pattern g. Competitors information h. Infrastructure facilities i. Achievements / awards if any J. Work flow model (end to end) k. Future growth and prospectus

3. 7 S model 4. SWOT analysis of the company 5. Summary of the latest annual reprt of

the company 6. Learning experience

1. Industry Profile

Industry overview Trends, growth rate Major players at global, national and

regional levels Market share Contribution to economy Business environment

2. Company Profile

A. Background and inception of the company Who founded? When it was founded? What was the business philosophy? What were business objectives?

2. Company Profile

B. Nature of business carried Manufacturing Services Trading NGO Profit / service / co-operative

2. Company Profile

Vision, Mission, Quality Policy Mission statement Vision of the company Quality policy – Statement

2. Company Profile

D. Product / Service profile Major products of the company with

specifications Services offered by the company

2. Company Profile

E. Area of operation Global: Manufacturing locations abroad and

markets served, Marketing offices abroad, or exports to various countries

National: State in which manufacturing facilitates are located, marketing offices, market shares

Regional: Regional markets

2. Company Profile

F. Ownership pattern Type of company: Private or Public? Single

owner, partnership, Private limited or Public limited? Public sector-Under ministry or corporation or public limited company, Joint venture.

Major share holders, and shares held Board of Directors

2. Company Profile

G. Competitors information Major competitors product or service vise Market shares of each player

2. Company Profile

H. Infrastructural facilities R & D facilities Manufacturing facilities Office automation Utilities Welfare facilities Training facilities

2. Company Profile

Achievements / awards if any Major achievements including market

leadership, inventions, patents etc Any quality certification-ISO 9000, QS 9000,

ISO 14000 Awards- Business excellence awards,

Quality awards

2. Company Profile

K. Future growth and Prospectus Growth strategies of organizations Expansion plans New products

7 S Model

The 7 S framework of Mckinsey is a model that describes how one can holistically and effectively organize a company.

Together the 7 factors determine how a corporation operates.

7 S Model

Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small.

They are all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time

7 S Model

The Seven-Ss is a framework for analyzing organizations and their effectiveness.

It looks at the seven key elements that make the organizations successful, or not:

Origin of the 7-S Framework.

The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981.

They had been investigating how Japanese industry had been so successful.

At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent.

Origin of the 7-S Framework The Seven S model was born at a

meeting of these four authors in 1978. It appeared also in "In Search of

Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey.

Since then it is known as their 7-S model.

7 S Model

McKinsey 7-S Model Strategy Structure Systems Style Staff Skills Shared values

McKinsey 7-S Model

Staff: The number of staff, How people are hired, integrated, developed, socialized into the organization.

Skills: Distinctive skills, capabilities, and competencies that reside in the organization.

Strategies: The initiatives that the organization has chosen to gain sustainable advantage and reach its vision.

McKinsey 7-S Model

Structure: The organizational structure, roles, and other framework the organization uses to guide its activities.

Systems: The formal and informal processes and procedures that support and govern activities.

Style: The leadership approach of top management.

Shared values: The guiding concepts and principles used to guide behavior in the organization.

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Shared values

The hard elements are factual and easy to identify. They can be found in strategy statements, corporate plans, organization charts, and other documentation

The Hard S’s

McKinsey 7-S Model Strategy Structure Systems Style Staff Skills Shared values

The soft elements are difficult to describe since they are continuously developing and changing. They are highly determined by the people at work in the organization.

The Soft S’s

7-S Model – The Hard S’s

Strategy Actions a company plans in response to or

in anticipation of changes in its external environment

It is determination of the mission or purpose and long-term objectives of an enterprise, followed by adoption of courses of action and allocation of resources necessary to achieve these aims.

Mission Major objectives Strategic intent

Strategy

Strategic intent-The commitment to win in the competitive environment

The company's chosen strategic direction has a large influence on how the organization will be structured and how it will behave in the future.

Marketing Strategy-Diversification, Expansion, Product mix, Pricing strategy

Production-Outsource or In-house HR strategies Joint ventures, Alliances, Collaborations

Structure

Structure Basis for specialization and

coordination, influenced primarily by strategy and by organization size and diversity

Organizational structure should follow logically from its intended strategy.

It also suggest that the two components, structure and strategy, are interactive and will influence each other

Organizational Structure

Organization Chart formal reporting relationships levels in hierarchy spans of control departmentalization

Systems to facilitate: coordination communication integration

Structural Designs

Functional Structure Can adapt functional structure

with horizontal linkages Divisional Structure Geographical Structure Matrix Structure Horizontal Structure /

Product Line Structure Hybrid Structure

C h ie fA cco u nta n t

B u dg etA n a lyst

V ice P re sid e n tF ia na n ce

P la n tS u pe rin ten de n t

M a in te na n ceS u pe rin ten de n t

V ice P re sid e n tM a nu fa c tu ring

T ra in ingS p e c ia list

B e ne fitsA d m in is tra to r

D ire c to rH u m an R e so u rces

C E O

Other Organizational Forms Joint Ventures Licensing agreements Strategic Alliances Virtual organizations Global (transnational) Work

Teams

Virtual Teams

Virtual Teams are characterized by: Distributed locations of team members Use of information technology to accomplish

tasks Effective when:

Communication & collaboration skills are high. Trust among team members is high

Organizations are increasing their use of virtual teams

Potential for improvement in virtual team management is huge

Systems

Systems Systems refer to the internal procedures and

routines that the company uses in its every day business.

The processes and procedures through which things get done from day to day (a very powerful S)

The systems can be formal or informal systems and are really what makes the business function.

Examples are capital budgeting systems, recruitment procedures and informal networking. 

Systems – various elements

Communications practice and system Management reporting system Approval process Planning/budgeting system Rewards system including appraisal “Rules”

7-S Model – The Soft S’s

Style :Management style: what managers do rather than what they say (where they spend their time and attention, what they allow, what they reward, etc)

Management style is a key element in the behavior of organizations but this is a rather tricky concept when it comes to measuring it objectively.

The way managers collectively behave with respect to use of time, attention and symbolic actions (a very powerful S)

Leadership Styles Autocratic Democratic Participative

Management vs. Leadership Some managers (but not all) are leaders Some leaders (but not all) are good

managers A manager gets work done through the

efforts of other people Includes planning, organizing, motivating, and

controlling A leader creates and realizes a vision

Communicates that vision and moves the organization toward that vision

Staff

The staff component is central to the organization and it overall performance of course - the model recognizes this and tries to chart the main influences on staff systems and development

The organization's human resources; refers to how people are developed, trained, socialized, integrated, motivated, and how their carriers are managed.

Recruitment Selection Placement Training and Development

Staff

Numbers and types of personnel within the organization Technical Non-Technical Managerial

Skills

Skills refers to what are the key skills and capabilities within the company. What is the company good at?

Peters and Waterman recognized IBM for its ability in the area of customer services and product innovation

Distinctive capabilities of personnel or of the organization as a whole

Skills

Core competencies- CK Prahlad Can not be imitated Developed through continuous

improvement Strength of the organization

Shared values

originally called super ordinate goals; the guiding concepts and principles of the organization - values and aspirations, often unwritten - that go beyond the conventional statements of corporate objectives; the fundamental ideas around which a business is built; the things that influence a group to work together for a common aim.

Shared values

What does the organization stands for and what it believes in.

Central beliefs and attitudes. Guiding concepts, fundamental ideas

around which a business is built Values define what is and isn't

acceptable – they become organization's code of behavior

Shared values

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate

goals

Effective Effective organizations organizations achieve a harmony achieve a harmony between these between these seven elements; if seven elements; if one element one element changes, then this changes, then this will affect all the will affect all the othersothers

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Super ordinate

goals

The 7-S Model can The 7-S Model can be a valuable tool to be a valuable tool to initiate change initiate change processes and to processes and to give them direction; give them direction; i.e. determine i.e. determine current state and current state and ideal state of each ideal state of each element, and element, and develop action plans develop action plans to close the gapsto close the gaps

McKinsey 7-S Model*

Strategy Structure Systems Style Staff Skills Super ordinate

goals

In change In change processes, many processes, many organizations focus organizations focus their efforts on the their efforts on the hard S’s; however, hard S’s; however, the soft factors can the soft factors can make or break a make or break a successful change successful change process. All factors process. All factors must be accounted must be accounted forfor..

* Note: Students have learnt 7 s from MBP ( Management Part) in the first semester. Students should not simply repeat the definitions in the report. But they should apply the concepts and report the applications with reference to the project organisations in the report.

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Super ordinate

goals

InterrelatedInterrelated Foundation of Foundation of

corporate corporate cultureculture

Levers available Levers available to managementto management

Strengths of the 7-S Model. Benefits

Diagnostic tool for understanding organizations that are ineffective.

Guides organizational change. Combines rational and hard elements

with emotional and soft elements. Managers must act on all Ss in parallel

and all Ss are interrelated.

Questions: Strategies

What are the organization’s strategic initiatives?

Are strategies aligned with and supportive of vision?

Is there sufficient clarity of the strategy for people in the organization to plan and implement?

Is there shared understanding and agreement on the set of strategies?

Questions: Strategies

Are there sufficient resources in the organization to fully address strategies?

Is there fully accountability/ownership for each strategy?

Is the outcome for accomplishing the strategy clear? (reward)?

Questions: Structure

Is the organizational structure appropriate given the strategies and objectives?

Are the roles clear and defined well enough to ensure accountability?

Are the reporting structures realistic, practical, and clear?

Where is the connection to customers? Does the floor plan/physical layout

facilitate communication and interaction? Are the job descriptions and levels

structured to support career development?

Questions: Systems

What information systems are in place? Are they effective and being used?

What communication systems and tools are needed? Do people have access to communication channels? Do they have enough information to make good decisions?

Are the rewards and recognition systems aligned with the vision, strategies and objectives? Do employees have clear work objectives? Are they receiving regular performance feedback? Are there sanctions for those who do not reach their goals?

Questions: Systems

Does business have effective planning systems? Do the plans effectively support in reaching strategies and objectives?

What measurements systems are in place to make progress and problem areas visible to top management?

Questions: Style

How effective are the leaders and leadership style?

What is the predominant model for decision making? Is it aligned with organization’s values? Is it effective given the nature of the decisions and needs of the organization?

How do leaders react under crisis? Does the leadership style vary depending on situation? Is leadership style effective in each situation?

Are the leaders effective role models for the rest of the organization?

Questions: Staff

Is the number of people appropriate for the amount of work?

What is the process of integrating new people into the organization? Do the people feel part of the team?

Where are the people located geographically? Are they close to customers? Close to the work?

What is the social network in the organization? Is it strong or week? Do the employees see other employees as partners or adversaries?

What are the mechanisms to create a sense of team work? Is the work of an individual effort or team work that requires strong partnering?

Questions: Skills

What technical skills are needed in the organization? Where do these skills gets developed?

What type of communication skills are needed? Oral, written, both etc. Are these skill requirements built into the selection process?

What management skills are required for a manger to be successful? Is it expected that a person learn these elsewhere or within the organization?

What are the rewards for effective people management?

What incentives are provided for building new skills? How is the skill development managed within the

organization? Is that individual driven or does the organization (or manager) drive?

Questions: Shared Values

How clear are the organization values? Are they stated or unstated?

How does organization gain alignment or organization value with individual values? Are these disconnects? How are these reconciled?

Do the values align with the organization’s mission and objectives?

Are there rewards for behaviors that align with values? How are the situations handled where there has been breach of values?

How are the values communicated? Are the values universal or do they work best for certain groups and geographies?

SWOT analysis

A scan of internal and external environment is an important part of strategic planning process.

Environmental factors internal to the firm are classified as Strengths or weaknesses, and those external to the firm are called opportunities and threats.

SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which operates.

SWOT analysis

Strengths (Examples) Patents Strong brand names Good reputation among customers Cost advantage Resources Distribution networks

SWOT analysis

Weakness (Examples) Week brand name High cost Low reputation Resource constraints

SWOT analysis

Opportunities (Examples) Increasing customer demand Emerging markets Removal of trade barriers Better technology Growing industry

SWOT analysis

Threats (Examples) Shift in consumer tastes Substitute products New regulations New players Trade barriers

Summery of latest annual report Latest annual report Summary- Financial ratios( current ratio,

Inventory turnover, Debtors turnover, N/P ratio, Gross profit ratio and intrepretation)

Learning Experience

Specific learning's from study-Application of theoretical concepts learned, Management functions, any techniques

PART B

1. a)General Introduction Statement of the problem Objectives of the study Scope of the study

KEY POINTS Statement of the problem should be clearly defined at the beginning and it should be related to the field of specalisation

Objective of the study: Each objective should have link with subsequent analysis and conclusion •Hypothesis if any should be suitably tested by using using statistical analysis

General Introduction……

Research Methodology Limitations of the study RESEARCH

METHODOLOGY Research Design Descriptive/Analytical/Exploratory?Nature of Data – Primary /Secondary?Sample Design:

Sample UnitSample size Sampling Technique

Method of Data collectionTools used for Analysis

b) Analysis Design• Interpretation of results, • Findings from analysis • Observations & Suggestions

c)conclusions and Recommendationsd) Annexure – figures, graphs,

photographs.e)Bibliography