This document discusses various methods and techniques for organizational appraisal, including value chain analysis, qualitative analysis, quantitative analysis, historical analysis, industry standards, benchmarking, and the balanced scorecard. It provides details on each method, such as how value chain analysis is used to identify a firm's most valuable activities, how quantitative analysis includes financial and non-financial measures, and how the balanced scorecard translates a business's vision into objectives in four key areas: financial, customer, internal processes, and learning and growth. The document aims to outline different approaches for evaluating an organization's internal environment and identifying strengths and weaknesses.

1. METHODS AND TECHNIQUES
OF ORGANIZATION APPRAISAL
PRESENTED BY
LAKHWINDER SINGH
(167005)

2. Organizational appraisal meaning
 Organizational appraisal is the process of
monitoring an organization's internal
environment to identify strengths and
weaknesses that may influence the firm's
ability to achieve goals. Appraisal of
internal environment enables a firm to
decide what it can do.

3. Methods and Techniques
 Value Chain Analysis
 Qualitative analysis
 Quantitative Analysis
 Historical analysis
 Industry standards
 Benchmarking
 Balance Scorecard
 Key Factor Rating

4. Value chain analysis
 value chain analysis is a strategy tool used
to analyze internal firm activities. Its goal is
to recognize, which activities are the most
valuable (i.e. are the source of cost or
differentiation advantage) to the firm and
which ones could be improved to provide
competitive advantage.

6. Quantitative
Analysis
Financial
Analysis
Non
Financial
Analysis

7. Financial Analysis
 Ratio Analysis
 EVA= (NOPAT)-(Capital*Cost of Capital)
 ABC
Non Financial Analysis
 Everything can not be expressed in monetary terms
 Goodwill, Employee morale , service call rate
,inventory units used per period, absenteeism,
service call rate, total cycle time of production,
Employee turnover,etc.

8. Comparative
analysis
Historical
Analysis
Industry
Norms
Benchmarking

9. Historical Analysis
 Comparison with one’s own performance over a
period of time.
 Graphical representation of company’s
performance.
 Comparison can be done to see improvements
and pitfalls.

10. Qualitative Analysis
 It can be used to express the tenor of
corporate culture, ability to absorb and
assimilate knowledge or the level of
morale among employees. A systematic
qualitative analysis may use the survey
approach to finding the status of
organizational climate.

11. Industry Norms
 Comparison with competitors.
 More specially, comparison with strategic
groups.
 strategic groups are conceptually defined
cluster of competitors that share the same
strategies.

12. Benchmarking
 Benchmark is the reference point for taking
measure against .
 Purpose is to find the best performers so that one
could match one’s own performance with
them and even surpass them.

13. Benchmarking
 Performance Benchmarking
 Process Benchmarking
 Strategic Benchmarking
 Internal Benchmarking
 Competitive Benchmarking
 Functional Benchmarking
 Generic Benchmarking

14. Key Factor Rating:
Organizational capability Profile
Financial Capability Profile
a)Usage of Funds
b)Management of Funds
Marketing capability Profile
a)Product Related
b)Price related
c)Promotion related
d)Integrative and Systematic

15. Operation capability Factor
a)Production System
b)Operation and control system
Personal capability factor
a)Personal System & employee characteristic
b)Industrial relations
General management capability
a)General management system
b)External relations
c)Organization Climate

16. Balance Scorecard
 A model is integrating financial and non financial
measures(Kaplan & Norton 1996)
 Casual link between outcomes and performance drivers
of such outcomes
 Translate vision and strategy of a business unit into
objectives and measures in four distinct areas
a)Financial
b)Customer
c)Internal business process
d)Learning and growth

18. Balance Scorecard
a)Financial Perspective – This consists of costs or measurement
involved, in terms of rate of return on capital employed and
operating income of the organization.
b)Customer Perspective –Measures the level of customer
satisfaction, customer retention and market share held by the
organization.
c)Internal business process Perspective This consists of measures
such as cost and quality related to the business processes.
d)Learning and growth Perspective Consists of measures such
as employee satisfaction, employee retention and
knowledge management.

19. THANK YOU