ASSIGNMENT ON McKinsey 7S FRAMEWORK

Submitted to: Submitted By:

Prof. Jan Surya Sharma Varun Kumar
19BSP3167
Section- D
The McKinsey 7S Framework is a management model developed by well-known business consultants
Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA-- "Management By Walking
Around" motif, and authored In Search of Excellence) in the 1980s. This was a strategic vision for groups,
to include businesses, business units, and teams. The 7S are structure, strategy, systems, skills, style,
staff and shared values.

The model is most often used as a tool to assess and monitor changes in the internal situation of an
organization. The model is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used to help to identify
what needs to be realigned to improve performance, or to maintain alignment (and performance)
during other types of change.

McKinsey 7S Framework of Honda

SKILL

The training provided by the company to employees is

 On – job training
 Off – job training

On job training

 30 days of induction program is conducted to each and every employee of an organization.

 One year monitoring program by senior officers of the different departments
 Three kinds of learning are thought to employees.
 Individual learning.
 Team learning.
 Organizational learning

Off job training

 The company having 5 institutions to conduct training program outside the company.
 The company conducts seminars
 Group discussion are conducted by organization
 HRD department conducts program Train the Trainer and Workshop to Trainees.

STAFF

Staffing is process of acquaint human resources for the organization and assuring that they have the
potential contribution to the achievement of the organization goals. Honda company generally prefers
to have highly qualified and dedicated management professionals in case of staffing process at
Narasapura Plant.
STRATEGY

Strategy refers to the determination of purpose and basic long term objectives of an enterprise and the
adoption of course of an enterprise and the adoption of course and the allocation of resources
necessary to the aims.

 Acquire the huge public service.

 Service maximization as well as staff maximization.
 Increase the turn over to the next year.
 Facing the cut throughout the competition.
 Adopt the sophisticated technology through decreasing the cost and heavy work force.
 Maintaining the good organizational ethics and culture.
 Serving the customers as well as retaining the customers.

STRUCTURE

The structure typically hierarchical arrangement of lines of authority, communications, rights and duties
of an organization. Organizational structure determines how the roles, power and responsibilities are
assigned, controlled and coordinated and how information flows between the different levels of
management

A structure depends on the organization's objectives and strategy. In a centralized structure, the top
layer of management has most of the decision making power and has tight control over departments
and divisions. In a decentralized structure, the decision making power is distributed and the
departments and divisions may have different degrees of independence. A company such as Proctor &
Gamble that sells multiple products may organize their structure so that groups are divided according to
each product and depending on geographical area as well.

SYSTEM

The organization is described as a system used for transforming input into output. At the centre of this
transformation process is the technical core, which is the heart of the organization’s production of its
product or service. In an automobile company the technical core includes the plants that manufactures
automobiles. In a university, the technical core includes the academic activities of teaching and
research. Inputs into the technical core include human resources, land, equipment, buildings and
technology. Outputs from the technical core include the goods and services that are provided for
customers and clients. Operations strategy and control feedback shape the quality of outputs and the
efficiency of operations within the technical core.

In Honda company the following major systems are using

 MIS system
 Billing system
 Purchase system
 Recruitment system
  Procurement system
 Showrooms systems
 Bonus system

SHARED VALUES

Shared value of the organization can be characterized as the whole of the norms, views and culture
shared by the people working in the organization. The values are the things that you would save for
even if they were demonstrably not profitable.

The values of Honda motors follows are

1. Customer satisfaction is of cordial value to Honda Motors

2. High concern for quality, safety and work environment.

3. Self service subsidized canteen, common for all

4. To sustain an organization of able and committed employees and provide opportunities for growth
and development.

STYLE

Style refers to the employee shared and common way of thinking and behavior. The management sets
the objective to the line and functional specialists and provides clear procedure and rules for decision
making

Management is the central power sources that make the decision under the guidelines issued by the
head office.

Head of each divisions constitute the management committee headed by the directors. The committee
formulates strategic plans and policies to take the business forward and reviews implementation of the
company’s annual plans.