Open Access Subscription Access
Open Access Subscription Access
Measuring Organizational Effectiveness Through Performance Management System and Mckinsey’s 7 S Model
McKinsey 7 S Model is used to analyze an organization’s effectiveness through Shared Values, Strategy, Structure, Systems, Style, Staff and Skills. For effective operation, each of the 7 elements must be aligned and connected, with Shared Values being central to the development of all the other elements. Performance Management System (PMS) manages employee performance through joint goal-setting, evaluation, development and rewarding achievements. PMS is used to assess the effectiveness of its human resources. The purpose of this paper is to analyze what role human performance plays in the effectiveness of 3 state power sector utilities in West Bengal, namely, West Bengal Power Development Corporation Ltd. (WBPDCL), West Bengal State Electricity Transmission Company Ltd. (WBSETCL) and West Bengal State Electricity Distribution Company Limited (WBSEDCL). Net profitability has been considered as the indicator of effectiveness due to the commonality shared by the 3 companies. The period covered is from 2011-12 to 2015-16. Using a structured questionnaire, responses were collected from the key HR people from the target organizations. The findings indicate which of the 7 Ss is most predominant in an organization and whether Shared Values has any impact on the effectiveness of an organization or not. The study also helps pinpoint whether any particular ‘S’ needs realignment to improve performance.
Performance Management System Mckinsey 7 S Organizational Effectiveness Power Sector Net Profit.
- Ainsworth, M. and Smith, N. (1993), making it Happen: Managing Performance at Work, Prentice Hall, and Sydney.
- Angle, H. L. and Perry, J. L. (1981), an Empirical Assessment of Organizational Commitment and Organizational Effectiveness. Administrative Science Quarterly, 26(1), 1-14.
- Armstrong, M. and Baron, A. (2007), Performance Management: A Strategic and Integrated Approach to Achieve Success, Jaico Publishing House, New Delhi.
- Bredrup, H. and Bredrup, R. (1995), Performance Planning to Ensure Business Achievements, in A. Rolstadas (edr.), Performance Management: A Business Process Benchmarking Approach, Chapman and Hall, London.
- Campbell, J. O. (1977), On the Nature of Organizational Effectiveness, in P.S Goodman and J.M. Pennings (edrs.), New Perspectives on Organizational Effectiveness, Jossey Bass, San Francisco, 13-55.
- Deming, W. E. (1982), Out of the Crisis, Cambridge University Press, Cambridge.
- Dikmen, I., Birgonul, M. T. and Kiziltas, S. (2005), Prediction of organizational effectiveness in construction companies, Journal of Construction Engineering and Management, 131(2), 252-261.
- Finn, R.H. and Fontaine, P.A. (1983), Performance Appraisal: Some Dynamics and Dilemmas, Public Personnel Management Journal, 13(4), 335-43.
- Fletcher, C. (1993), Appraisal: Routes to Improved Performance, Institute of Personnel and Development, London.
- Goodman, P.S. and Pennings, J.M. (1980), Critical Issues in Assessing Organizational Effectiveness, in E. E. Lawler, D. A. Nadler and C. Cammann (edrs.), Organizational Assessment: Perspectives on the Measurement of Organizational Behavior and the Quality of Work Life, Wiley, New York, 185-215.
- Guin, K. (1987), Performance Management: Not Just an Annual Appraisal, Personnel, 65(4).
- Hartle, F. (1995), Transforming the Performance Management Process, Kogan Page, London.
- Hewitt Associates (1994), The Impact of Performance Management on Organizational Success: A Study, Hewitt Associates LLC, Illinois.
- Huber, V. (1983), An Analysis of Performance Appraisal Practices in the Public Sector: A Review and Recommendations, Public Personnel Management, 21(3), 258-67.
- Kent, B. (2004), Performance Management, Management Books, Cierncester.
- Lawler, E. E., Mohammed S. A., Gerald, E. and Ledford, J. (1998), Strategies for High Performance Organizations: The CEO Report, JosseyBass, San Francisco.
- Lopez, S. P., Peon, J. M. M. and Ordas, C. J. V. (2006), Human resource management as a determining factor in organizational learning. Management Learning, 37(2), 215-239.
- Mabey, C. and Salaman, G. (1995), Strategic Human Resource Management, Blackwell, Oxford.
- March, J. G. and Sutton, R. I. (1997), Organizational performance as a dependent variable, Organization Science 8(6), 688-706.
- Otley, D. (2005), Performance Management: A Framework for Analysis, in A. J. Berry, J. Broadbent and D. Otley (edrs.), Management Control: Theories, Issues and Performance, Palgrave Macmillan, Basingstoke.
- Pascale, R. and Athos, A. (1981), the Art of Japanese Management, Penguin Books, London.
- Peters, T. J. and Waterman, R. H. (1982), In Search of Excellence: Lessons from America’s Best-run Companies, Harper and Row, New York.
- Pfeffer, J. (1994), Competitive Advantage through People, Harvard Business School Press, Boston.
- Robbins, S. P. (1990), Organization Theory: Structures, Designs, and Applications, Prentice Hall, Inc., Englewood cliffs, NJ.
- Torrington, D. and Hall, L. (1995), Personnel Management: HRM in Action (3rd edn.) Prentice Hall, New Jersey.
- Waterman, R. Jr., Peters, T. and Phillips, J.R. (1980), Structure Is Not Organization, Business Horizons, 23(3), June, 14-26.
- www.Fsa.Ulaval.Ca/Html/Fileadmin/Pdf/Ecole_Comptabilite/Publications/ 2003-04-3.pdf/ [Dissertation on Performance Measurement and Organizational Effectiveness: Bridging The Gap--Jean-François Henri] (last accessed on 02.01.13).
- www.mindtools.com/pages/article/newSTR_91.htm/(last accessed on 02/12/12)
- www.wbpdcl.co.in (last accessed on 04.07.17)
- www.wbsedcl.in (last accessed on 04.07.17)
- www.wbsetcl.in (last accessed on 04.07.17)
Abstract Views: 37
PDF Views: 0