Organizational capability

An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion
An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge.
The firm’s ability to manage people
to gain competitive advantage.
• focuses on internal processes and systems for meeting customer needs
• creates organization-specific competencies that provide competitive advantage since they are unique
• ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
 A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
 The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
 OSHA standards are generally legally binding for an employer,
 while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
 “ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”
 “ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”
 Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.
 A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product.
EXAMPLES
 The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).
 OSHA standards are generally legally binding for an employer,
 while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.
 A measurement of the quality
of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.

1. Organizational Capabilities

2. Organizational Capability The firm’s ability to manage people to gain competitive advantage. focuses on internal processes and systems for meeting customer needs creates organization-specific competencies that provide competitive advantage since they are unique ensures that employee skills and efforts are directed toward achieving organizational goals and strategies

3. Importance Competitive Advantage :- Organizational capabilities provide a company with an advantage in the marketplace. When an organization continues to create new capabilities and develops existing ones, it will maintain the advantage over its competitors . Improved Customer Relationships :- Good customer relationships ensure the continued growth and competitiveness in the market.

4. Flexibility and Responsiveness :- The responsiveness of an organization is its ability to change in response to customer demand Knowledgeable Workforce :- The skills and knowledge of a company's workforce allow the organization to direct those skills to achieve the business's goals

5. Four elements of capabilities Shared mindset Management practices capacity for change through understanding and managing organizational systems Leadership at all levels in the organization

6. SHARED MINDSET Common understanding and goals of ends (strategies) and means (processes, work systems, activities) Congruence between customer and employee expectations

7. MANAGEMENT PRACTICES Policies, programs, operating procedures, and traditions that guide work Transform individual behavior to create customer satisfaction and consistency in how customer is treated Complement and integrate with one another to create common expectations, behaviors, and goals

8. CAPACITY FOR CHANGE Ability to reduce cycle time of all activities

9. LEADERSHIP Owns passionately a vision which is promoted both within and outside the organization Translates external conditions into vision for organization and how employee must act to attain vision Empowers individuals at all levels within the organization to act within his or her domain

10. Internal Environment The internal environment  of an organization deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy.

11. Kinds of capabilities Financial Capability Profile (a) Sources of funds (b) Usage of funds (c) Management of funds Marketing Capability Profile (a) Product related (b) Price related (c) Promotion related (d) Integrative & Systematic

12. Operations Capability Factor (a) Production system (b) Operation & Control system (c) R&D system Personnel Capability Factor (a) Personnel system (b) Organization & employee characteristics (c) Industrial Relations General Management Capability (a) General Management Systems (b) External Relations (c) Organization climate

13. SWOT ANALYSIS Identify & classify firm’s resources-S&W Combine firm’s strength into specific capabilities – Corporate capability- may be distinctive competence Strategy that best exploits the firms resources Identify resource gaps & Invest in upgrading