Critical performance analysis of Proposal Engineer Pillar (PEP) at Sizophumelela using Mcinsey 7S model

Matu, Nkosinathi George (2008-12)

Thesis (MBA (Business Management))--Stellenbosch University, 2008.

Thesis

ENGLISH ABSTRACT: The organisations of the 21st century are confronted with continuous changes. It is necessary that organisations respond to these changes to improve the level of their performance. Although the number of change initiatives within organisations is the norm of the day, there are very few successes. One reason for this, the author maintains, is the tendency to usually overemphasise hard elements, and not attend adequately to the soft elements, although the latter often contribute to the success of the organisation. These soft elements are: staff, skills, style of leadership, and shared values. The aim of the study is to enhance organisational performance of the proposal engineering pillar (PEP) of Sizophumelela organisation. This department was chosen because most of the corrective actions requests (CAR) due to non performance at Sizophumelela are from PEP. The main objective of this study is to identify the areas of concern in PEP, to develop an understanding of organisational change and to propose interventions to address and solve problem areas and improve performance. The McKinsey 7S Model was used to analyse the effectiveness of this department at Sizophumelela, an electrical transformer manufacturer and refurbishment business. After the identification of problem areas, interventions are proposed to address these issues. In the literature review an overview of some organisational change models is provided and the limitations of these models are also indicated. Out of these models, the business process re-engineering (BPR) model was viewed as important for this study; hence some aspects of that model form part of proposed interventions to address the identified issues. The McKinsey 7S Model is preferred for the performance analysis of the PEP with its focus on: Strategy, structure, systems, staff, and style of leadership, skills, and shared values. The 7S model is viewed by the author as the model that has the greatest benefit, because both hard and soft elements are focused on. A comprehensive set of material available within the company was used and structured interviews were conducted with all members of the PEP team. With the help of this methodology the strengths and weaknesses were established and some recommendations were made.

AFRIKAANSE OPSOMMING: Die organisasies van die 21ste eeu kom voortdurend te staan voor veranderinge. Dit is nodig dat organisasies op hierdie veranderinge reageer om hul vlak van prestasie te verbeter. Hoewel die aantal veranderingsinisiatiewe binne organisasies vandag die norm is, is daar baie min suksesse. Een rede hiervoor, volgens hierdie outeur, is die neiging om gewoonlik harde elemente te oorbeklemtoon en nie genoeg aandag te gee aan die sagte elemente nie, hoewel laasgenoemde dikwels bydra tot die sukses van die organisasie. Hierdie sagte elemente is: personeel, vaardighede, leierskapstyl, en gedeelde waardes. Die doel van die studie is die verbetering van organisasieprestasie in die voorleggingsingenieurspilaar (PEP) van die Sizophumelela organisasie. Hierdie afdeling is gekies omdat die meeste van die versoeke om korrektiewe optrede (CAR) weens nieprestasie by Sizophumelela uit PEP afkomstig is. Die hoofdoelwit van hierdie studie is om die areas in PEP waaroor daar kommer bestaan, te identifiseer, begrip te ontwikkel van organisasieverandering en intervensies voor te stel om probleemareas op te los en prestasie te verbeter. Die McKinsey 7S Model is gebruik om die doeltreffendheid van hierdie afdeling by Sizophumelela te ontleed. Laasgenoemde is 'n besigheid wat elektriese transformators vervaardig en opknap. Na die identifisering van probleemareas word intervensies voorgestel om aan hierdie kwessies aandag te gee. In die literatuuroorsig word sommige modelle van organisasieverandering bekyk en die beperkinge van hierdie modelle word ook aangedui. Uit hierdie modelle word die model vir besigheidsprosesherontwerp (BPR) beskou as belangrik vir hierdie studie, dus vorm sommige aspekte van daardie model deel van voorgestelde intervensies ten opsigte van die geidentifiseerde kwessies. Die McKinsey 7S Model word verkies vir die prestasieontleding van die PEP met sy fokus op strategie, struktuur, stelsels, personeel, leierskapstyl, vaardighede en gedeelde waardes. Die 7S Model word deur die outeur beskou as die model met die grootste voordeel, aangesien dit fokus op beide harde en sagte elemente. 'n Omvattende stel materiaal wat binne die maatskappy beskikbaar is, is gebruik, en gestruktureerde onderhoude is gevoer met al die lede van die PEP span. Met behulp van hierdie metodologie is die sterk en swak eienskappe bepaal en sekere aanbevelings gedoen.

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