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Unit 6: Management by Objectives and Styles of Management




                                                                                                Notes
            in front of all the shareholders. He said, 'Mr Premji, you should sell your shareholding
            and give it to more mature management because there is no way a person of your age with
            your  experience can  lead this  company.'  And  that  really  made  me  more and  more
            determined to make a success of Wipro."

          Source: www.moneycontrol.com
          6.7 McKinsey’s 7-S Model


          The McKinsey’s 7-S Framework is management model or framework  which describes seven
          factors which should be organised by a company in an efficient and holistic way. The framework
          suggests that there is a multiplicity of factors that influence an organisation’s ability to change
          and its proper mode of change. These factors describe the way in which a company operates. The
          manager of the company should  take into account every factor equally important and these
          factors are interdependent on each other. There is no starting point or implied hierarchy in the
          shape of the diagram, and it is not obvious which of the seven factors would be the driving force
          in changing a particular organisation at a certain point of time. The critical variables would be
          different across organisations and in the same organisations at different points of time.
                                 Figure 6.2:  McKinsey’s  7-S  Framework




                                            Structure


                             Strategy                       Systems


                                             Shared
                                             Values


                              Skills                         Style



                                              Staff




          Source:  www.transess.com
          1.   Strategy: defines the plans for the allocation of resources, how to reach goals, environment
               in which to work and so on.
          2.   Structure: defines how the various units in the organisation  are related to each  other:
               centralized, matrix, top-down approach etc.
          3.   Shared Values: defines what the company stands for and what it believes in.
          4.   Systems: defines  the procedures, processes and  other routines to be  followed for the
               project preparation. That is how the work should be done.
          5.   Staffs:  includes  the number  and type of  people involved in the project and also  their
               profession.




                                           LOVELY PROFESSIONAL UNIVERSITY                                   101
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