Managing Organisational Design and Change

Introduction

Managing an organizational design is not simply focusing on the structure, but it requires proper understanding of the organizational alignments to the prospects, functions and strategies of the business. In addressing the organizational design, the contexts at which the organization exists must be also be given priority. Therefore, it is important to identify the mission and the structure of the organization as a well as the process of achieving an effective change management program. The development of business strategies is most of the times triggered by the varied nature of market dynamics which further facilitates the business organizations to establish itself in a leading market position and gain competitive advantage. Organization management is a topic of great significance in the present day business world and every organization which aspires to grow and prosper in future. However, corporate strategies alone cannot ensure growth and expansion unless the firm possess an efficient structural and operational team. The effectiveness of any organizational structures relies mainly on the management team, employees, sound communication system and right objectives. In the past few decades, a set of tools, methods and change management strategies were applicable in mapping the organizational design thereby gaining commitment and support.  However, it still remains very essential to gauge a proper understanding of an organization because both human behaviors and organizational behaviors are based on specific characteristics and environmental elements. Effective organizational change is a product of comprehensive revolutionary process that contributes on major projects and cultural change for today’s evolving business environment. Therefore, this paper is designed to explore the concept of organizational design and change management. 

Section 1: (Answer all 3 questions)

Question: What are Organisations 

Definition of Organisations

Organisation is generally defined as individuals or groups working jointly or together to achieve a desired goal or a common objective. This can also refer to an entity which consists of several people, or an institution or association that has goal to achieve and is often linked to an outer macro environment.

Function of Organisations

The functions of organisations are not same all the time and it varies from one institution to another. The structure of an organisation provides employees with a guideline under which they can operate effectively and achieve the goals. Still there are some functions which are basic to every organisation and it does not vary among different sectors. Flow to the production process, communication in every level of operation, financial accountability and providing leadership are few off the very important functions of organisations. Not only the sector but the growth of business alters the function of employees working in an organisation and there are even instances when the same worker is assigned different roles in organisations when they perform different functions. The functions of any organisation changes on the basis of the several departments, designations, management and the lastly for the organisational structure.

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Composition of Organisations

Composition of organisations can also be termed as Organisational structure which mainly defines the way in which various activities such as coordination, allocation of duties and supervision are directed by the higher officials so that the desired goals of the organisation can be achieved. However, the main composition of an organisation is the people who are working in it, the systems, subsystems which are a part of its structure.

Design of an Organisation

The design of an organisation is a step by step or a multi-structural methodology which helps in identifying the various aspects of work flow, structures, procedures and systems which aren’t working perfectly so that they can be aligned so that it suits with the p-resent objectives. The organisations design further helps in identifying and developing plans for implementing changes. The stakeholders of the organisation most of the times defined the design of an organisation. The managers who are the individual directing the organisation towards the organisational goals, the shareholders who own shares of the asset owned by the company. The shareholders even have the right to elect the topmost officials of the company and even have a say in the managerial decisions undertaken. The workers who are subordinates to the officials, work under their guidance to fulfil the organisational goals. The three main components of an organisation arte centralisation, formalisation and complexity. There exists difference in the institutional activities and centralisation often refers to that. The differentiation which results in the centralisation can be vertical or horizontal in nature. Formalisation refers to the uniqueness of each of the designations whereas complexity defines the complications that are related to each of the responsibility that has been assigned.

Differences between Organisations

All organisations cannot be similar and every organisation is bound to be different from the other in terms of its objective, sector, structure and management.

Manner of Difference

The difference in organisation is an outcome of the separate functioning processes it applies to run its operations. Most of the times the methods of functioning differs. The managerial and decision making process are two of the things which are responsible for the stark differences in their methods (French, Thomas, Baker, Burton, Pennington & Roddam, 2009). It is not mandatory that the differences would only arise in terms of the functions the organisation undertakes but also from its location and geographical differences, the quality of their product or the variety offered can also be stated as a difference. 

Reasons for Difference

The reasons for the organisations being different are many. The difference can generate from simple reasons such as the difference in the products they produce, their employee strength, industry they belong or size of the enterprise.

Question: Organisational Context

Organisations does not necessarily refer to the modern day business enterprises rather it is an old concept which is generally defined as the institution or social system where individuals or a group act together to meet a common objective. The structure of organisations have changed drastically from the initial framework but the motives have remained somewhat similar which is to ensure that the objectives off the members and the enterprise both gets fulfilled. The objectives of the organisations are mostly segregated into different functions which are designated to individuals who are working under the framework (Seuring & Müller, 2008).  The function of the organisation can better understood when the composition or structural aspects of the organisation are taken into account. The discussion on the context of an organisation takes several factors into its account. The leading factors among them which dictates the course of business or the direction of the firm operations are functional differentiations, market structure, and tools of industry, management and national policies. The other factors which have a role in the context of an organisation are culture, size of the firm, financial aspects and leadership style which should be taken into account while analysing about context.

Understanding the context of an organisation is important to frame the policies which can further help in framing policies which can prove to be appropriate for the growth. Proper knowledge and understanding of the organisational context is required to identify whether there is any need to change the existing system or is it beneficial for the organisation to adapt to the changes which is taking place in the external environment. Bringing changes in organisation does not always give a competitive advantage as the functioning of the entire system may get affected by minute alterations in the subsystems. 

Question: Strategic Decision Making and Strategic Frameworks

Decision making and preparing strategical frameworks are two of the most important tasks of the business organisers. There are ample evidences which provide the ground for expecting strategical framework to be one of the major reasons behind the success of organisations. The main objective behind the formation of strategical frameworks is to fulfil the goal of the organisations and be ensured about the success. Strategic decision making process are becoming a significant part of any decision making and planning process. The constituents of a strategic decision making process are the tackling of future missions and objectives and also implement changes to execute the goals of the company. The decision makers are hired by the organisations for undertaking policies and plan appropriately so that the organisation is benefitted and is able to gain competitive advantage over other firms in the market (French, Thomas, Baker, Burton, Pennington & Roddam, 2009). The decision makers who are experts in this fields most of the time plans the future success of the company in terms of its current position and execute this with the help of properly outlined framework. Framing decisions strategically is one of the main responsibility of the decision makers. Risks and organisational changes are two most potential threats to a decision maker and strategical frameworks provides a shield to the decision makers to battle with such constraints. The managers are the decision makers of the organisation in most of the case and they need to be careful of several factors which are to be held responsible for changing the business path or hampering growth.

The advantages of using a strategical framework are numerous and the sometimes the outcomes or benefits cannot be observed immediately but are supposed to be evident in the long run. The mapping out of the process. The responsibility of mapping out any process falls upon the leader or the managers which needs to be executed for the success of the organisation. The example of a strategic framework can be provided with context to a business organisation which is mostly focused on 3 goals each of which is used for focusing on the objectives of the organisation (French, Thomas, Baker, Burton, Pennington & Roddam, 2009). The first step to execute a strategic framework initiates with choosing the accurate framework which is suited for the organisational growth, the next step applies the framework to the goals which is mainly concentrated on the alignment of the strategy with the objectives. The third step involves the review of the plan that have been prepared for the progress with that of the strategical framework. This is one of the most used approach in case of strategical frameworks in business firms. 

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Section 2: (Answer 1 question only)

Question: Porter’s 5 Force Analysis

According to Dobbs (2014), Porters Five Forces model is an important tool in understanding the competition in the business environment and is utilized for identifying the potential of the company in implementing strategies to attain profitability. This model is used by the business organizations to understand the forces in the market and determine their strategy accordingly. As stated by Maxfield (2008), Porters Five Forces Model is used by the companies in identifying and determining the strength and weakness of a particular industry and determine a corporate strategy to achieve profitability. This report intends to conduct an in-depth analysis of Porter’s Five Forces Model of Coca- Cola Company and provide useful insights on the soft drinks industry.

The Coca-Cola Company is one of the largest manufacturing unit engaged in the production and distribution of soft drinks all around the globe. The soft drink industry is one of the most profitable industry all around the globe and the Porter’s Five Forces model provides a clear idea about its success and challenges faced (The Coca-Cola Journey, 2018a).

Analysis of Porter’s Five Forces Model of Coca-Cola Company

Competition between Rivals- The risk for the company is moderate in this category as the only competitor Coca-Cola has in the market is Pepsi (Morningstar, 2018). Both the companies are engaged in production of soft drinks and have a similar product line (The Coca-Cola Journey, 2018b). Moreover, both the companies have similar non-soda products such as bottled water and various types of juices. These two companies enjoy fierce rivalry in the competitive market (Morningstar, 2018).

Threat of New Entrants- Coca-Cola has earned recognition by involving themselves in various licensing deals, selling their products in various fast food retails and other distribution deals. The threat of new entrants is low for the company as it will be difficult for an emerging company to spend heavily creating a brand image similar to Coca-Cola (The Coca-Cola Journey, 2018a). However, with consumers becoming health conscious, various companies providing healthier soft-drink options can provide a competition to the company (Bose, 2008). 

Threat of Substitute Products- The threat of substitute products is moderately high for the soft drink industry with people becoming increasingly conscious regarding their health. The preference for substitute items of soft drinks like coffee, fresh smoothies, various types of juices among the consumers are increasing continuously providing opportunities to companies such as Starbucks (Quinn, 2015).

Bargaining Power of Buyers- The buyers of the soft drink industry have a fair amount of bargaining power affecting the bottom line of the company. Coca-Cola are involved in selling their products to various distribution channels and not to the end users. The distributors sell the particular product depending on the demand of it. However, the company intends on selling their products to the distributors and the end consumers at a low price to attain their loyalty (The Coca-Cola Journey, 2018a).

Bargaining Power of Suppliers- The bargaining power of suppliers is low in the soft drink industry. The commodities required for production are sugar and a few other preservatives which is easily available and suppliers have adequate control over the pricing strategies of their products (Bose, 2008).

Section 3: (Answer 3 questions only)

Question: McKinsey 7S Analysis

Evaluation of McKinsey 7S Model

According to Hanafizadeh and Ravasan (2011), the McKinsey 7S model was developed by MsKinsey consultants Tom Peters, Julien Philips and Robert Waterman in the 1980s to conduct an analysis on the key elements of a firm’s organizational design. This model is widely used as one of the most popular strategic tools by the industrialists in order to improve their performance and attain a competitive advantage over other business organizations. The McKinsey model puts primary emphasis on human resource for the purpose of organizational performance rather than tangibles of mass production such as capital, equipment and infrastructure (Alshaher, 2013). The goal of this model is to analyse the effectiveness of the seven most important elements of the company in achieving organizational objectives.

The McKinsey 7S model is used as a valuable tool in structuring the design of the organization and is used to facilitate change within the organization in case of mergers and acquisition, implementation of new strategies and to forecast change of the elements affecting the organization. This report intends to carry out an analysis of the MsKinsey 7S model of Coca-Cola Company and identify the effectiveness of its application on the performance of the organization.

Application of McKinsey 7S model to Coca-Cola

Structure- A successful organization needs to undergo various structural changes in order to cope up with specific strategic responsibilities without disturbing the basic divisions of the organizations. The head office segment of Coca-Cola Company is responsible for providing direction and support to the overall regional structure of the organization (Walsh & Dowding, 2012). According to Walsh and Dowding (2012), the key decisions of Coca-Cola Company are taken by the company officers; whereas, their executives are responsible for the regions that are effective in the growth of the business. The business officials need to fulfil the needs of the consumers by satisfying the varying tastes of the individuals of different demographics and psychographics (Walsh & Dowding, 2012). The officials of the company are also responsible for developing research and development and introducing local advertising methods to attract the existing consumers and gain potential customers.

Strategy- The strategy of Coca-Cola Company is divided into various sub strategies. The corporate strategies of the organization include portfolio development, amending of the packaging system, asset expansion and exploitation of cost synergies. The functional strategies are comprised of marketing, production and distribution strategies. The business strategies of the organizations are to capitalize on cost utilization and improvement of the supply chain management; whereas, improvement in relationship with the distributors is the main objective of the distribution strategy (Walsh & Dowding, 2012).

System- According to Kant, Jacks and Aantjes (2008), the company distribute their responsibilities among various sub-divisions of the organization providing the managers and their employees various manageable tasks. The company follows day-to-day management policy at the managerial level in order to analyse the performance of their employees. Moreover, various procedural measures are set in the organization with regular feedback regarding the performance of the employees (Kant, Jacks & Aantjes, 2008). The reports of the feedbacks are provided to the subordinate level managers and rewards or incentives are provided to the employees as per their performance. The grievances of the employees identified are necessary motivation is provided to them in order to improve their performance.

Style- The style and culture of Coca-Cola Company is driven by their mission and vision policies, which is to look forward and satisfying the requirements of the consumers. The company puts emphasis on creating a value for their products and distinguishes themselves from other soft drinks brands (The Coca-Cola Journey, 2018c). The Coca-Cola Company provide accelerated opportunities for their employees, which enables them in their career advancement and contribute to the company. In addition, Coca-Cola supports various campaigns and communities directed towards preservation and protection for the environment (The Coca-Cola Journey, 2018c).

Staff- The management of the staff is one of the most vital responsibilities of the managers of the organization. According to Alshaher (2013), performance of the employees of the company are based on the innovation techniques of the staff in achieving organizational objectives. Moreover, various financial rewards and recognition is provided to the employees of the organization in order to motivate them to improve their performance.

Skills- The most extraordinary heritage of the Coca-Cola Company is that it is a leading brand in the soft drink industry all around the globe. According to Alshaher (2013), the company believes in providing the best experience to the customers from consumption of their products.

Shared Values- The values of the organization is to build aspirations that unite the various departments of the organization into one common purpose and to help each other in their process of work and solving of issues (Walsh & Dowding, 2012).

Effectiveness of McKinsey Model after Porter’s Five Forces and PESTLE Analysis

According to Singh (2013), McKinsey Model is effective in improving the performance of the business organization and enable it to achieve their objectives. The model enables the firm in forecasting the changes and effects of the company in future, which is not possible through PESTLE analysis of Michael Porter’s Five Forces analysis. Moreover, this model is utilized by business organizations to align their departments and processes in case of any merger or acquisition of the firm with any other business organization. In addition, the McKinsey Model is effective in implementation of a further proposed strategy of the organization (Hanafizadeh & Ravasan, 2011). 

Question: Product & Service Portfolio Analysis

BCG matrix

BCG matrix is a corporate planning tool which is also termed as the growth share matrix. This matrix takes the help of growth rate factors and the market share to evaluate the portfolio of the brand and formulate investment strategies for future (Ioana, Mirea, & Balescu, 2009). The two dimensions used in the matrix depicts the likely profitability of the portfolio in terms of the cash needed to support a section and the cash generated from it (Ioana, Mirea, & Balescu, 2009). The matrix is good for analyzing the product or services provided by the company but is not very efficient in providing an overall outlook of the business. 

The organization chosen for the BCG matrix analysis is Coca- Cola. The Boston consulting group matrix or BCG matrix is used for analyzing the various range of products sold by the organization with respect to the sales, market share and scopes or potential for growth. The various products sold by Coca- Cola are soft drinks, mineral waters, minute maid and many more under these broad categories (The Coca-Cola Company, 2018b). The company not only generates revenue from the beverage it produces but also from the investment with its bottling partners and from the syrup it manufactures for the soda fountain operators. The market for Coca- Cola is at a matured stage where the business is growing at a steady rate. The beverages of the coco Cola Company is acting as cash cow for the organization. The cash generators for the company are its beverages and the bottling partners (The Coca-Cola Company, 2018c). These two sections earn the lion’s share of the revenue earned by the organization. The cash user products of the organization are those products, which have a large market share compared to the other products offered by the firm. These products generate revenues for the company and helps in the sales generation for the company as well. The mineral water segment of Coca- Cola belongs to the cash user product; the main logic behind putting mineral water in this segment is because of its consistency as a product. The cash neutral products are those, which has a dual outlook for future development (The Coca-Cola Company, 2018c). This kind of products has not gained worldwide acceptance as beverages but have sustained in the market. The potential market of this products has ample opportunities for growth but the brand has somehow failed to identify the needs of the market everywhere and grow uniformly. Minute maid is one such product from the coca- cola brand which can be termed as cash neutral.

Life cycle

There are seven stages of a product life cycle which are termed as development, introduction, growth, maturity, saturation, decline and withdrawal. Sometimes even after putting excess effort, organizations may not be able to reach its targeted position in the market (Sleeswijk, van Oers, Guinée, Struijs, & Huijbregts, 2008). The product may reach the decline stage due to various reasons, it may have outlived its original value or certain changes in the technological, fashion or sales section may have taken place which has compelled the organization to decline its products (Stark, 2015). There are instances where the organization did not withdraw the product after it has reached the decline stage. The decision of withdrawing the product may depend on various reasons (Kloepffer, 2008). The organization has to look for the availability of new products as its replacement (Seuring & Müller, 2008). The organization has to understand from the business trends whether this particular trend or service is going to be in demand in near future or not (Finnveden et al., 2009).

Question: Value chain, Porter’s value chain

Value chain analysis

Value chain analysis is a strategical tool which is used for analyzing the internal activities of the firm. The main role of value chain analysis is to identify which activities are most valuable to the organization and which of those need to be improved (Bloom & Hinrichs, 2011). Value chain analysis helps the brand to attain competitive advantage over others. The main usage of the value chain is to improve the value of a product or service by identifying its core component and the cost associated to it (Ioana, Mirea & Balescu, 2009). The value chain analysis only targets the cost of the components to enhance its value whereas it could have targeted other components to make the operations more effective.

Generic Value Chain Model

The organization chosen here for discussion is Coca- Cola and it is part of the beverage industry. The value chain analysis of the beverages can be done by dividing it into the following sections; inbound logistic, operations, outbound logistics, marketing and sales (The Coca-Cola Company, 2018b). The inbound logistic requires collecting all the raw materials required to prepare the beverage, which are fresh water, crops, timber and pores. The operations of Coca- Cola include manufacturing, packaging and merchandising. The outbound logistics of this firms in this industry is organized via manual distribution across the distributions in various nations. Marketing and sales of the company applies marketing mix in a combined manner. Service is practiced in this organizations through the help of virtual agent of the official website of the firm.

Porter’s value chain

Porter’s value chain can be best understood with the help of an example. The organization. Coca- Cola has significant logistic benefits and outbound logistics. The service of the company is to ensure thousands of its retailers with the products which is one of its primary activities (The Coca-Cola Company, 2018a). The delivery of product is very efficient, which falls under the sales and marketing category. Providing service to their customers falls under the support activities provided by the organization.

Cost effectiveness

The support and primary activities of Coca- Cola are already very cost effective (The Coca-Cola Company, 2018c). The system and operations can be made more competent by creating a permanent chain of suppliers and distributors.

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Section 4: (Answer 1 question only)

Question: Strategic Choice and Development

Strategic drift

Strategic drift is defined as the situation where the gradual degradation of the competitive action results in the failure of the organization. The situation can be described as a circumstance where the organization fails to recognize and respond accordingly to the changes taking place in the external business environment. Every organization has some pre-determined objectives and due to cognitive sloth the organization is sometimes unable to meet those goals. The strategic drift is a phenomenon at the managerial level. There are few symptoms which depict that an organization is undergoing strategic drift in business. The preservation taking place in the status quo, not being able to recognize the macroeconomic phenomenon in the business world, same mindset of all the top officials and decline in the overall business performance are few of the symptoms which clearly indicate that the firm is undergoing strategic drift in business. There are several causes behind the strategic drift to take place, the major ones can be traced on the structure of the organization or else in the cognitive mapping. The cognitive assumptions are most of the times designed by the strategists who face limitations while developing ideas based on intuitions. The strategic is a complex thing which takes place within the boundaries of the strategic management of an organizations. The management of the organization are the ones who can avoid or take measures against the strategic drift to take place. It is of immense importance for an organization to keep track with the changes which are taking place in the external environment. When the organization does not keep track of the outer environment then it is unable to keep pace with the macro environment and lags behind its peers and lastly, this becomes the reasons behind their slow and gradual demise.

Issues for managers when preventing strategic drift

There are few issues which are faced by the managers while preventing the strategic drift of an organization. The managers are the individuals who are mainly responsible for saving the organization from getting into such tricky situations. The primary reasons for the strategic drift are, strategy or discovery that has helped the business to grow in past is not working anymore in the current environment, There are major social, technological and external changes taking place in the business field and the organization is unable to cope up with the change even when the mangers are designing strategies accordingly. Sometimes the previous success achieved by the firm lets the management think that this will continue for a long period of time and there are even instances when the senior management of the firm is not ready to accept that loopholes and problems present in the firm. One of the issue is termed as the flux and it takes place mostly because of the faulty decision undertaken by the manager. This happens when there exists a gap between what the market currently expects and what the organization delivers. The managers may have identified the situation but is unable to alter the strategies within the given time. The next issue takes place when the senior management fails to recognize the need of a transformational change in the direction of the strategies and the last issue arises when there is a disagreement among the officials of the senior management team regarding what strategies to be undertaken. 

Section 5: (Answer 1 question only)

Question: Quality Gurus

Review of literature

Guru is defined to be a guide, teacher and wise most importantly. Quality guru is someone who possess all the above-mentioned qualities and should also have a idea and approach to enhance quality within business so that it can create a major and lasting impact on the industry. The concept of quality gurus have emerged since the mid of the 20th century and there have been three distinct section of gurus since that time.  Early 1950’s, late 1950’s and 1970’s- 1980’s have been the time when the gurus emerged. In the early phase of the 1950’s, the message of quality was taken to Japan by the American gurus. In the late 1950’s the Japanese mixed their own concept and developed new theories in response to the Americans. In the last phase the western gurus emerged who followed the success of the Japanese industrialization to generate their own ideas. According to the gurus, there is a threefold strategy to add and retain quality in business (Smith, 2011). The three phases are quality planning, quality control and quality improvement. The work of the quality gurus in the first phase started when the gurus structured and formulated tools of quality assurance and control prior to 1940’s and the development concerned only about their initial success when they migrated to Japan but in the period starting from 60’s and ending in the 80’s saw the development and building of new concepts similar to the Japanese (Fonseca, 2015).

W Edward Deming

W Edward Deming was one of the quality gurus who went to Japan. Edward focused on the significance and responsibility of management at the personal and the corporate level. He firmly believed that management is responsible for more than 90% of the quality problems which generate because of quality issues. He produced the business philosophies such as 7 deadly sins, 14 points and the PDCA cycle (Gill, 2009). Edward Deming suggested that creation of constancy towards the betterment of product or services is important and defective workmanship should never be encouraged. Identification of problems and working continually on the system is the responsibility of the management (Huczynski, 2012). He was against the numerical goals, posters and slogans for making the workforce productive rather than providing them with better methods. He encouraged workplace equality and was of the opinion to provide education and training to the workers to enhance their skills. W Edward Deming believed that the adoption of 14 points by a business firm was an indication that the firm wanted to stay and grow in business (Zairi, 2013).

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Section 6: (Answer the one question)  

Question: Performance Management Systems and the Balanced Score Card

Performance management system entails the process of establishing a work environment where employees’ delivers based on their abilities.  According to Serra and Kunc (2015), performance management systems involves a while work system is defined by that point when the work is actually needed. An organization that uses performance management system creates room for interaction between employees and the management as part of major life cycle occurrence. As a consequent, it makes every interaction an opportunity to learn new ideas. 

A good performance management system is aimed at promoting the entire organizational performance by encouraging the members of a team to ambitiously deliver to the organizational goals (Serra & Kunc, 2015). Therefore, an effective performance management can play a crucial role to the success of an organization by:

Motivating employees, applying promotion transfer or offering financial reward to an employee will encourage him to improve on the performance (Serra & Kunc, 2015). Besides, it encourages morale and retention. A motivated workforce is more likely to exhibit loyalty that in turns reduce turnover rate. Finally, performance management saves on management time thereby encouraging efficacy and consistency in performance (Serra & Kunc, 2015).

The Balanced Scorecard

The balance scorecard is a management technique that focuses on the organizational strategic objectives while employing them into the metrics of financial performances (Rampersad & Hussain, 2014).  The scorecard technique was established by an economist known as Kaplan to bring together financial aspects, internal process, learning and growth as part of managerial elements to foresee the success of an organization. Therefore, balanced scorecard gives the right feedback in regard to planning and execution of a strategic activity (Rampersad & Hussain, 2014). The balanced scorecard is subdivided into four different clusters namely: financial performance, customers’ internal process and learning & growth.

The financial measure indicates that accounts are best suited in tracking finances of a company. Therefore, it provided significant report that can be utilized to promote the market value (Rampersad & Hussain, 2014). The customers perspective is concerned with on how well an organization should meet the needed of its customers while internal process the satisfaction nature of organizational products.

The balance scorecard translates organizational missions into measurable objectives. As such, it stands to benefit an organization in many ways.  For instance, it enables a company to focus on what should be done that in turn translates into a breakthrough in performance (Rampersad & Hussain, 2014).  Besides, it assumes the position of interactive device that is healthy for corporate programs. The balanced scorecard does not only translate performance into achievable objectives, but it also breaks down the level of measures intro effective organizational achievements. 

Traditional performance management systems

In traditional performance management systems, all activities of a company were measured based on short term and long term financial results. Therefore, the success of a Company would depend on intangible intellectual assets and not the human resources. As pointed out by Goetsch and Davis (2014), organizations are run by people. This is influenced by the fact that it is through human resource that an organization is capable of achieving its objectives.   For the reason, the performance or an organization is calculated by the total sum of performance emanating from the staff.  In his sentiments, Goetsch and Davis (2014), traditional performance management systems are guided by the development roles and the mission statement of the company. As a consequent, it depends on performance of the members to objectively optimize the vital resources.  Compared to other management systems, traditional performance management systems is of significant benefit to an organization since it is guided by the indicators or organizational objectives. 

Conclusion

Managing organizational design and change is a complex process that requires vast knowledge of the present status of an organization and the intended future.  It is important to develop a proper understanding of organizations because human behaviors and closely linked to organizational behaviors and both determine the success of an organization. This paper was designed to explore various insights of an organizational design and change management process.  By looking at the concept of an organization, it has clarified that organizations must have appropriate management structures defining the roles and responsibilities including authorities to carry out definite tasks. The paper has also explored varied roles of an organization including financial, sales and organizing. By defining the organizational structure and composition, the study has addressed the formation process and benefits associated with different forms of organizations. the paper has also evaluate the McKinsey 7S model and indicated that the structure element forms part of an organizational change program by creating clear platforms that should be followed towards the realization of the organizational objectives. From the competitive strategies of different companies, the study has confirmed that a company must have a unique and domineering strategy so as to achieve a competitive edge in the market.  Finally, the paper has made recommendations one the quality concepts and tools that are needed for an organizational survival before drawing to any conclusion on types of management systems.