Analysis of company outputs by nadler-tushman congruence


Assignment:

Outputs are not complicated to understand. At the organization level, they are the products and services that are provided to customers. (It can also be the value provided to owners, but we are not going to consider this here.) The primary way that a company measures its performance is financially: Sales, Profit, Return on Sales (ROS), Return on Assets; and also via market share.

The organization is made up of various groups. One way to look at groups is by functional area: marketing, operations, purchasing, etc. Another way, if the company is large, is by its various divisions or by its product groupings. Here it becomes a little more complicated to measure performance, but it is possible by defining the goals and objectives of each group.

The bottom level of the organization is the individual. Each person has a job description and is responsible for specific outputs for that job. The main method of performance measurement here is individual productivity: Outputs / Inputs. e.g. widgets / hour, or reports / day. This is more difficult to quantify and for a specific company is difficult to obtain, since this data is not generally reported. Sometimes you can infer some individual measures, for example, by dividing profit by the number of total employees, to get a measure of overall profitability per person.

Research your company and find the relevant data for this assignment in terms of its outputs. One good source of information here is the Annual Report or the annual 10k report. But you may have to take some time to sift through these.

Reading:

Nadler, D.A. & Tushman, M.L. (1980) A model for diagnosing organizational behavior. Organizational Dynamics, 9(2), 35-51.
For Case 3, you should focus on the Outputs aspect of this model. Read pages 43 to 51.

Case:

Make a Case for one of the following possible statements about your organization: The interaction of the outputs at XYZ [the chosen company] from the three different levels of the organization, interact to generate [high, medium, or low] performance of the overall organization [choose one of the three possible performances.]

Using the Nadler-Tushman Congruence Model, conduct an analysis of the chosen company's outputs. Remember that outputs exist at the individual, group and organizational levels and that there are often differences between the output goals an organization specifies in its strategic plans and those that are actually achieved.

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