McKinsey 7 S Model is used to analyze an organization’s effectiveness through Shared Values, Strategy, Structure, Systems, Style, Staff and Skills. For effective operation, each of the 7 elements must be aligned and connected, with Shared Values being central to the development of all the other elements. Performance Management System (PMS) manages employee performance through joint goal-setting, evaluation, development and rewarding achievements. PMS is used to assess the effectiveness of its human resources. The purpose of this paper is to analyze what role human performance plays in the effectiveness of 3 state power sector utilities in West Bengal, namely, West Bengal Power Development Corporation Ltd. (WBPDCL), West Bengal State Electricity Transmission Company Ltd. (WBSETCL) and West Bengal State Electricity Distribution Company Limited (WBSEDCL). Net profitability has been considered as the indicator of effectiveness due to the commonality shared by the 3 companies. The period covered is from 2011-12 to 2015-16. Using a structured questionnaire, responses were collected from the key HR people from the target organizations. The findings indicate which of the 7 Ss is most predominant in an organization and whether Shared Values has any impact on the effectiveness of an organization or not. The study also helps pinpoint whether any particular ‘S’ needs realignment to improve performance.
Cite this article:
Parveen Ahmed Alam. Measuring Organizational Effectiveness through Performance Management System and Mckinsey’s 7 S Model. Asian J. Management; 2017; 8(4):1280-1286. doi: 10.5958/2321-5763.2017.00194.9