Analyzing Management Tools for Organizational Behavior Improvement

This report provides a comprehensive analysis of various management tools applicable to organizational behavior, specifically in the context of a company like Danone. It delves into tools such as the Balance Scorecard, McKinsey 7-S framework, Level Three Leadership, Goold and Campbell's 9 Tests, Business Model Canvas, and Enterprise Model. For each tool, the report outlines the key benefits, such as strategic planning, identifying gaps, and determining future changes, as well as disadvantages like high costs, lack of external focus, and employee resistance. The analysis covers how these tools can be used to improve strategic decision-making, employee performance, and overall organizational effectiveness, while also acknowledging the challenges and limitations associated with their implementation. This document is available on Desklib, a platform offering a wide range of study resources for students.

Organization Behavior

Contents
1. Balance Scorecard...................................................................................................................1
2. McKinsey 7-S..........................................................................................................................1
3. The Level Three Leadership....................................................................................................2
4. 9 Tests by Goold and Campbell...............................................................................................3
5. Business model canvas............................................................................................................4
6. Enterprise model......................................................................................................................4
REFERENCES LIST.......................................................................................................................6

2. The benefits and disadvantages of these tools
In order to make proper analysis for Danone, there are different type of tools that are
used. All these their own set of benefits and disadvantages. Below given are the disadvantages
and benefits of all the tools:
1. Balance Scorecard
Advantages:
 Effective strategic planning: It enables to provide powerful framework for
communicating and building up strategies. Further, it help to determine the gap identified
by the employer (Niven, 2011). This way, appropriate steps are taken so that
organizational can be attained.
 Overcoming challenges: It enables firms like Danone to overcome functional challenges
like raising of intangible assets, implementing strategy and performance measurement. It
provides metrics that makes managers to use assets in systematic manner.
 Personal scorecard: Employees are the one who present the products and services to
customers (Malina, Nørreklit and Selto, 2011). Balance scorecard helps to evaluate and
analyse the performance of workers and in identifying the areas in which improvement
needs to be made.
Disadvantages:
 Time and financial cost: The cost involved in this process is high and in balance
scorecard significant investment is required by Danone. It is important for the company
to manage its system constantly and actively (Malina, Nørreklit and Selto, 2011).
Management need to know the way system works or it increases the cost for training.
 Lack of External Focus: The tool provides findings from internal sources but it does not
provides information about external problems. For example, focus can be made on
customers but it fails to identify other key performance indicators like change in business
environment, competitors, etc. of Danone (Weber, 2008).
 Employee resistance: There are employees who support balanced scorecard but there are
who favor it through mouth but resist its implementation.
2. McKinsey 7-S
Benefits:
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 Identifies gape between various elements: It enables to provide strategic plan that
contribute in reaching out current state of desired organizational state. There are various
aspects that are covered in this model starting from structure to skills (Kaplan, 2005).
When analysis is made, then the problems that are faced from the side of all the 7 areas
are identified that performance of firm can be measured.
 Determines future changes: With time many changes needs to be made by Danone. These
are made so that better services can be delivered. However, with the help of this model,
management is able to make analysis of the business and take up steps to improve their
future performance (Palatkova, 2011).
 Selecting the best: It lists out all the strategies can be applied and among them best one
can be selected by delivering the issues or benefits that they can be get.
Disadvantages:
 Does not focus external environment: The strategy does not cover the external
environment. For example, management of Danone can identify the skills and
performance level of workers but fails to factors that affect them externally (Chong and
Preece, 2014).
 It does not shows the effectiveness of areas identified but it just shows that level of
performance that are made.
3. The Level Three Leadership
There are three levels with the help of which Danone can support their managers to
develop leadership skills (Clawson, 2002). Three levels as per the model include public, private
and personal.
Benefits:
 Enables to focus on people individually or personally. Different people have diverse set
of perception and it requires the managers to make use of strategies that will help to
direct them (Walumbwa, Hartnell and Oke, 2010). With the help of three level
leadership, individuals are able to focus on requirements and to support employees in
raising their performance and in solving issues.
 There are conflict situations that are faced and managers need to understand the main
cause due to which problem has raised. However, through level three leadership,
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managers are able to interact with each employee and take up appropriate decision that
can help in resolving the issue or conflict.
Disadvantages:
 The rate of expense that is faced by management is high. It is important for firms like
Danone to provide managers with training and development so that they are able to
develop their skills in positive manner.
 As per the third level, it covers the personal skills that the manager possess. However,
there are skills that an individual develop during the time of his/her growth (Murphy,
Myors and Wolach, 2014). When these skills a manager does not possess, then it
becomes difficult for the management to make them develop these through training and
development. In this context, there are situations in which even after providing managers
with appropriate training, management does not get expected result.
4. 9 Tests by Goold and Campbell
This is a type of model that determines the design that should be followed by companies
so that their desired goals and objectives can be achieved (Goold and Campbell, 2002). There are
9 aspects that are covered, these are Specialization principles, co-ordination principle, knowledge
and competence principle, control and commitment principle, innovation and adaptation
principle, constraints, people, corporate strategy and product market strategies.
Benefits:
 This is a systematic design that enables Danone to take up appropriate steps that will be
suitable for the firm to grow. It is important that employees have proper understanding of
the aspects that management has planned (Carayannis, Sindakis and Walter, 2015). This
way, they are able to focus on the business operations in effective manner.
 This model enables to the business to focus on setting up principles that will be favorable
enough to make efficient working environment that aim at attracting customers and
working on improving their quality of products or services.
Disadvantages:
 There are different aspects that are considered and it becomes difficult for them to focus
on all of them with effectiveness. There are condition in which lot of time is consumed
by the business to implement them in effective manner.
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 Various type of changes that are made by the business to implement the model. It
becomes difficult for some of the workers to accept the changes (Harms, 2015). As per
the type of perception that are carried out by employees may not be positive for the
changes that firm like Danone is willing to implement.
5. Business model canvas
This is a strategic management and supports start ups ventures to develop a chart that can
help in attaining their goals. In condition were Danone need to develop new product or services,
then this model is highly effective. To start any new initiative, it requires to have people who
will support in reaching the set objectives and this model is helpful in doing so.
Benefits:
 The model is used by management to build blocks to guide brainstorming. There are total
nine heading that are included and when these are used, then it enables to shape idea in
desired direction (Abdelkafi, Makhotin and Posselt, 2013).
 Management need to write 40 pages of business plan to check whether the plan will work
out but they can instead make use of this model which is written in one page to know
whether the idea developed can help in reaching their goals.
Disadvantages:
 It requires to have number of people involved in the plan to be developed. The type of
opinion may be different and it becomes difficult to take up appropriate and suitable one
that will be implemented in the plan.
 There are many firms that deliver customers with similar type of products and services. It
requires the business to make appropriate analysis of competitors (Khajeh-Hosseini,
Greenwood and Sommerville, 2010). However, the model does not covers the aspects
that need to be considered in respect with competitors. In addition to this, it also excludes
organization’s strategic purpose.
6. Enterprise model
This is a type of business model that focus on business values. There are different
elements that are covered in this that make the business to develop strong relation with
employees and customers. With this respect, it consist of values like proposition, creation,
delivery, capture and communication.
Benefits:
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 Employees are face of organization as they have direct interaction with customers
(Harms, 2015). When they do not perform their roles in effective manner, then it has
negative impact over the business.
 For customers, there are certain set of expectations that they have before purchase
decision are taken. It required to Danone to understand the needs and take up appropriate
step so that they are able to raise their sales, profitability and customer’s satisfaction
level.
Disadvantages:
 It need the management to conduct time to time market research so that they are able to
identify the problems that are faced by customers. As per the findings made proper steps
should be taken so that they can raise satisfaction level.
 There can be many issues or problems that can be faced by employees. It is the
responsibility of firm to understand them and take up proper steps (Abdelkafi, Makhotin
and Posselt, 2013). In this context, the support from the side of employees many not be
favorable and when the rate of support is low, then it becomes difficult for them to
understand the issues that are faced by them.
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REFERENCES LIST
Books and Journals
Niven, P. R., 2011. Balanced scorecard: Step-by-step for government and nonprofit agencies.
John Wiley & Sons.
Malina, M. A., Nørreklit, H. S. and Selto, F.H., 2011. Lessons learned: advantages and
disadvantages of mixed method research. Qualitative Research in Accounting &
Management, 8(1), pp.59-71.
Palatkova, M., 2011. The 7-S-McKinsey Model: an Implementation Tool of a Destination
Marketing Strategy in the Czech Republic. Global Management Journal, 3.
Chong, H. Y. and Preece, C. N., 2014. Improving construction procurement systems using
organizational strategies. Acta Polytechnica Hungarica, 11(1), pp.5-20.
Walumbwa, F. O., Hartnell, C. A. and Oke, A., 2010. Servant leadership, procedural justice
climate, service climate, employee attitudes, and organizational citizenship behavior: a
cross-level investigation. Journal of Applied Psychology, 95(3), p.517.
Murphy, K. R., Myors, B. and Wolach, A., 2014. Statistical power analysis: A simple and
general model for traditional and modern hypothesis tests. Routledge.
Carayannis, E. G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), pp.85-104.
Harms, R., 2015. Self-regulated learning, team learning and project performance in
entrepreneurship education: Learning in a lean startup environment. Technological
forecasting and social change, 100, pp.21-28.
Abdelkafi, N., Makhotin, S. and Posselt, T., 2013. Business model innovations for electric
mobility—what can be learned from existing business model patterns?. International
Journal of Innovation Management, 17(01), p.1340003.
Khajeh-Hosseini, A., Greenwood, D. and Sommerville, I., 2010, July. Cloud migration: A case
study of migrating an enterprise it system to iaas. In Cloud Computing (CLOUD), 2010
IEEE 3rd International Conference on (pp. 450-457). IEEE.
Clawson, J. G., 2002. Level three leadership (Vol. 36). Prentice Hall.
Goold, M. and Campbell, A., 2002. Do you have a well-designed organization?. Harvard
business review, 80(3), pp.117-24.
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