There are many management approaches, which take about out of managing things and operating

in an organization. One of the famous model to analyze the pattern of management is

McKinsey’s framework.

While some models of organizational effectiveness go in and out of fashion, one that has
persisted is the McKinsey 7-S framework. Developed in the early 1980s by Tom Peters and
Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the
basic premise of the model is that there are seven internal aspects of an organization that need to
be aligned if it is to be successful.

The 7-S model can be used in a wide variety of situations where an alignment
perspective is useful, for example, to help you:

 Improve the performance of a company.

 Examine the likely effects of future changes within a company.
 Align departments and processes during a merger or acquisition.
 Determine how best to implement a proposed strategy.

The McKinsey 7-S model can be applied to elements of a team or a project as well. The
alignment issues apply, regardless of how you decide to define the scope of the areas you study.

The 7’s model is mainly distinguished into hard S’s and Soft S’s.

 The hard elements are feasible and easy to identify as they can be found in a strategy
statement, corporate plans, organisational charts ad other documentation of company.
They include : 1) Strategy
2) System
3) Structure
 The soft elements are basically feasible because of difficulty involved in describing them
as capabilities, value and element of corporate culture frequently developing and
changing. They include:
1) Style
2) Staff
3) Skill
4) Shared Values
3.1. STRATEGY

A strategy is the determination of the basic long term goals and objectives of an enterprise
and the adoption of course of action and allocation of resources necessary for carrying out the
goals

The business Strategy emphasis the following :

 Increase the market share in India’s Automobile Industry by following a disciplined

growth strategy and delivering high quality customer service.
 Open scalable system to deliver more products to more customers and to control
operating cost.
 Maintain their current high standard for service quality through disciplined risk
management.
 Develop innovative products and service that attract their targeted customer and address
in--efficiencies in Indian Insurance sector.
 Continue to develop product and service that reduce their cost of funds.
 Focus on high earnings and growth with low volatility.
 To keep the number 1 position.
 To expand its market in India as well as abroad.

3.2. Structure

Structure is the basis for specialisation and co-ordination influenced primarily by strategy
and organization activities are divided grouped and coordinated the relationship between
personnel in the organization is a formalized intentional structure of roles and positions in the
organization.

It refers to the hierarchical flow within the organization. It tells about the authoritative power
in organization. The design of organizational structure is a critical task of the top management of
 an organization. It is the skeleton of the whole organizational office. Organizational structure
refers to the relatively more durable organizational arrangements and relationships.

Organizational Structure

Board of director

Managing director

Executive V P President

Purchase Marketing Sales

Operations R&D Production Quality HRD & Business Industrial Finance

Engineering assurance TQC planning relation

Information Industrial Program Program Program Corporative

system business scooty motor cycle moped communication

(A)Sales & Service Departments

Senior vice president

Vice president

Sales head

Area
Territory
National
manager
manager Territory
National
Area manager
manager Territory
National
Area manager
manager Territory
National
Area manager
manager
 Functions of sales & Service Departments:

 Improved customer satisfaction.

 Customer relationship Management
 Build the company brand.4\
 Improve channel Management
 Expand dealer Network

(B) Finance Department

Senior vice president

Vice president

General manager General manager

Assistant general Assistant general Assistant general Assistant general

Other
Manager
staf1 Other
Manager
staf2
manager manager manager manager