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Explain the objectives and purpose of organizational analysis. Discuss and describe any two methods of organizations analysis and their merits and demerits.

 Organizational analysis is a systematic approach to studying an organization's structure, performance, and overall effectiveness. The objective of organizational analysis is to identify the strengths and weaknesses of an organization and to suggest strategies for improvement. The purpose of organizational analysis is to provide a comprehensive view of the organization's performance and to identify the areas that require attention and intervention.

There are several methods of organizational analysis, two of which are described below:

1. SWOT Analysis: SWOT analysis is a popular method used to analyze an organization's strengths, weaknesses, opportunities, and threats. This analysis helps organizations to identify their internal strengths and weaknesses and external opportunities and threats. The strengths and weaknesses of an organization are related to the internal factors, such as human resources, technology, and financial resources. On the other hand, opportunities and threats are related to the external factors, such as market trends, competition, and regulatory environment.

Merits:

  • SWOT analysis provides a clear picture of the organization's internal and external environment.
  • It helps to identify the key areas that require attention and intervention.
  • It helps to develop effective strategies to leverage opportunities and mitigate threats.

Demerits:

  • SWOT analysis can be subjective and influenced by personal biases.
  • It does not provide a detailed analysis of the organization's structure and processes.
  • The results of SWOT analysis can be influenced by the quality of data used for analysis.
2. Balanced Scorecard: The balanced scorecard is a strategic management tool used to measure an organization's performance in terms of four perspectives: financial, customer, internal processes, and learning and growth. This approach helps organizations to align their strategy with their vision and to track their progress towards achieving their goals.

Merits:

  • The balanced scorecard provides a comprehensive view of the organization's performance in terms of various dimensions.
  • It helps to align the organization's strategy with its vision and goals.
  • It provides a framework for continuous improvement by tracking progress and identifying areas for improvement.

Demerits:

  • The implementation of the balanced scorecard can be complex and time-consuming.
  • It requires the organization to define clear objectives and measures for each perspective.
  • The results of the balanced scorecard can be influenced by the quality of data used for analysis.

In conclusion, organizational analysis is an essential tool for organizations to assess their performance and identify areas for improvement. The methods of organizational analysis described above, namely SWOT analysis and balanced scorecard, are widely used in practice. While these methods have their merits and demerits, they provide a framework for identifying strengths and weaknesses and developing strategies for improvement.

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