Organizational analysis

Organizational analysis or more commonly Industrial analysis is the process of reviewing the development, work environment, personnel, and operation of a business or another type of association. This review is often performed in response to crisis, but may also be carried out as part of a demonstration project, in the process of taking a program to scale, or in the course of regular operations. Conducting a periodic detailed organizational analysis can be a useful way for management to identify problems or inefficiencies that have arisen in the organization but have yet to be addressed, and develop strategies for resolving them.

Organizational analysis focuses on the structure and design of the organization and how the organization's systems, capacity and functionality influence outputs. Additional internal and external factors are also accounted for in assessing how to improve efficiency. Undertaking an organizational analysis is helpful in assessing an organization's current well-being and capacity, and deciding on a course of action to improve the organization's long-term sustainability. A restructuring of an Organization may become necessary when either external or internal forces have created a problem or opportunity for improvement in efficiency and effectiveness.

When performing an organizational analysis, many details emerge about the functions and capacity of the organization. All of these details can make pinpointing what is efficient and inefficient difficult. Using theoretical organizational models can help sort out the information, and make it easier to draw connections. After working through these theoretical models, the organizations present situation is more adequately addressed, and the trajectory of the organization can be more fully determined.

This model relies on three key calculations to determine the efficiency and effectiveness of an organization. First, is the value, or mission, that guides the organization. Second, is operational capacity, the knowledge and capability to carry out the mission. Third, is legitimacy and support, or the environment, that authorize the value of the organization, and offer support, (specifically financial support). Using this model, a strategy for an organization is considered good if these three components are in alignment.

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.The degree to which the internal environment of the entity matches with the external environment is expressed by the concept of strategic fit.

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