This research, carried out in the "26 de Julio Este" Complex, aims to: Propose the McKinsey "Seven S" model to improve efficiency in the provision of services in the complex "26 de Julio Este" belonging to CIMEX SA in Santiago de Cuba.
application-of-the-model-of-the-seven-s-of-McKinsey-in-cimexTheoretical aspects address topics such as: the origin and emergence of McKinsey's “Seven S” Model as well as various authors' criteria regarding the elements that are related in said model.
A diagnosis of the complex is carried out through surveys of workers, customers and problems raised by managers, taking into account the Mckinsey “Seven S” model, and also the improvement proposals entailed by the application of this model in the "26 de Julio Este" Complex.
The fundamental result of this work is the proposal of the McKinsey “Seven S” Model, taking into account the results obtained in the diagnosis.
Introduction
In the business world, there are organizations that have a large amount of resources: financial, technological, knowledge, and logistics; However, no matter how hard they try, they cannot achieve their objectives and even if they use their resources to the best of their ability, they fail to achieve their goals. Others pitifully squander their resources and still manage to achieve good results.
These problems are very frequent in companies, so they should be directed based on worrying about being effective and efficient in the work they do.
Regarding this, McKinsey proposes a scheme to make companies effective, called the "Seven S" Model, which guides organizations in their daily work, taking as reference seven factors, which must be taken care of. the same way within an organization.
In the present investigation, this model is proposed in one of the CIMEX corporation complexes in Santiago de Cuba. Which is an Import and Export company belonging to the Cuban state that was created with the objective of facing the blockade against our country and inserting ourselves into the international and national market for the collection of foreign exchange.
The “26 de Julio Este” Complex, belonging to this corporation in Santiago de Cuba, is dedicated to the commercialization of products in freely convertible currency. It aims to raise foreign exchange through high standards of quality and efficiency in activities of a commercial retail and service nature, aimed at satisfying the needs of the population.
The problem in the "26 de Julio Este" Complex is given in:
How could the efficiency of service provision in the "26 de Julio Este" Complex belonging to CIMEX SA in Santiago de Cuba be improved?
To contribute to solving this problem, the General Objective has been outlined:
To propose the McKinsey “Seven S” model to improve the efficiency in the provision of services in the “26 de Julio Este” Complex belonging to CIMEX SA
in Santiago de Cuba.
Specific Objectives:
- Analyze the behavior of the "Seven S" in the "26 de Julio Este" Complex.
- Determine the bank of problems that affect the behavior of the "Seven S" in the Complex "26 de Julio Este".
- Investigate the feasibility of applying the McKinsey “Seven S” Model.
- Propose actions to improve the behavior of the "Siete S" in the "26 de Julio Este" Complex.
In correspondence with the established objective, the following Hypothesis was elaborated: The application of McKinsey's “Seven S” Model could improve the efficiency in the provision of services in the “26 de Julio Este” Complex.
Systematization of the problem:
- How have the factors related to the “Seven S” model behaved in the “26 de Julio Este” Complex?
- How does the internal client perceive the effectiveness of the 26 de Julio Este Complex?
Justification of the research:
From a practical point of view, this research will make it possible to know whether the effectiveness of the "26 de Julio Este" Complex is the most suitable; Well, if the contrary is verified, measures could be taken to improve it.
For this, surveys must be applied to both internal and external clients, which will be processed in the Professional Program SPSS 12.0 for a better interpretation of the results.
The methods used were:
Analysis and synthesis: It is used when analyzing each factor of the model in question in the "26 de Julio Este" Complex.
Logical history: It is used when analyzing the origin of the McKinsey “Seven S” model as well as the evolution that CIMEX has had in the Province.
The techniques used were:
Group work techniques.
Interviews.
SPSS Computing Package.
Surveys.
Theoretical Foundation on the McKinsey Model of the “Seven S”.
It is necessary for this research to carry out a detailed description of the theoretical foundations referring to the seven factors that McKinsey relates in his model, in order to better understand the diagnosis of the "26 de Julio Este" Complex on the basis of said model.
I.1 Origin and meaning of McKinsey's “Seven S” Model.
The "Seven S's" of the organizational structure were first mentioned in "The Art of Japanese Administration" by Richard Pascale and Anthony Athos in 1981. These authors had been researching how the Japanese industry had been so successful. At around the same time, Tom Peters and Roberto Waterman were exploring what makes an excellent company. The Model for "Seven S" was born from a meeting of these four authors in 1978. It also appears in the book: "In search of excellence" written by Peters and Waterman, and was taken as a basic tool by the global consulting company McKinsey. Since then it has been known as the "Seven S" Model.
The "Seven S" of McKinsey's organizational structure is a tool for analysis and action, it is a management model that describes 7 factors to organize a company in an effective way. Together, these factors determine the way in which a corporation operates. Managers should consider the seven factors to be sure of the successful implementation of a strategy, highlighting that each of these factors are interdependent and equal attention should be paid to each of them, that is, that they all have equal importance although each factor can vary from time to time and influence differently.
As shown in Figure 1, each of the factors that make up the model has the same importance and interact with all the other factors.
The model is supported by seven factors:
Figure 1: The “Seven-S” model
Source: Stoner James ¨ Administration ¨, Part One, Fifth Edition, page 236.
The meaning of each of the model factors is as follows:
I.1 Structure
This factor refers to the organizational structure that is nothing more than the way in which the activities of an organization are divided, organized and coordinated, and to the relationships of authority and responsibility that exist in it; it is the way in which the areas of the organization are related to each other: centralized, functional division (from top to bottom); matrix, etc.
Most organizational structures are too complex to convey verbally, and for that reason, managers commonly draw an organization chart that is nothing more than "a diagram of the structure of an organization, showing the functions, departments, or positions, within the organization, and how they are related ”.
In an organization chart the individual tables represent the division of labor and the way activities are departmentalized; which is nothing more than the grouping of activities of similar jobs and logically connected in a single department.
If you look at a flow chart, you can quickly see the command line, also called the control line, which can be defined as the number of subordinates who report directly to a specific administrator.
Selecting an appropriate command line is important, as this can affect efficiency since a very wide command line means that managers are overstretched and subordinates receive too little direction and control; otherwise, very narrow lines of command create vertical organizational structures with many levels between the highest and lowest managers, hindering the decision-making process in a rapidly changing environment.
In the book "Business Economics" part 1, three criteria are given to follow for the structural design of the organization, which with:
1. Observe what activities of the company are necessary to achieve the objectives.
2. Analysis of decisions. What decisions are needed to achieve the achievements required to achieve the objectives?
3. Analysis of relationships. With whom should the person in charge of their activity work? What contribution does this person have to make to those in charge of other activities?
I.1.1 The formal and informal organizational structure.
Formal organization charts are useful for showing who is responsible for certain activities, although they tend to hide many characteristics of the organizational structure. On the one hand, it implies that all administrators at the same level have the same authority and responsibility and this is not always true. On the other hand, employees can infer a certain level or power from the distance between their position and the CEO's role.
Organization charts cannot encompass the interpersonal relationships that make up an informal organizational structure. Herbert A. Simon describes this as "interpersonal relationships in the organization that affect decisions within it but that are omitted from the formal scheme, or are not compatible with it." These interpersonal relationships are sometimes called the dotted lines of the organization chart.
Types of organizational structure.
a) By function.
b) By product / market.
c) In matrix form.
The functional organization.
It is perhaps the most logical and basic form of departmentalization. It brings together in a department all those who carry out an activity or several activities related to each other.
The product / market organization.
When departmentalization becomes too complex for the functional structure, executives of upper management generally create semi-autonomous divisions, each of which designs, produces, and markets its own products.
The matrix organization.
Try to combine the advantages of both types of design and, at the same time, try to avoid their limitations.
It is an organizational structure in which the employee reports to both functional or division administrators as well as one of the project or group.
The different levels that make up the organizational structure are connected to each other by a communication system through which the authority system is transmitted. It is important to emphasize that they should not be carried out excessively, since the levels present problems, such as:
1. Costs. Each level that is increased supposes an additional cost, because at the head of each level there will be a person in charge of directing it, plus the people who depend directly on it.
2. Communication. Whether you like it or not, at more levels, greater communication difficulties. It is not uncommon for the detailed objectives and plans to be gradually distorted as they are transmitted; what is a rumor in one level, can be given as an incontrovertible fact in the next. Sometimes nuances are added to the communications, in such a way that when they reach the lowest echelon there is no one to recognize the original message.
3. Difficulties in planning and control. For the same reason mentioned in the previous paragraph, the perfectly outlined plan at a higher level loses coordination and clarity as it is subdivided and elaborated at lower levels. For the same reason, control becomes more difficult, since there are a limited number of people whom a person can control or supervise.
A well-known business adviser, VA Graicunas, limited the number of people who could be controlled to four. According to Graicunas, a superior who has only two subordinates must pay attention to four or six relationships, namely: a relationship with each of his collaborators, their relationships with each of their groups, the relationships of subordinate A with B and those of B with A. From this number, Graicunas developed a formula: n 2n − 1−1 according to which with four collaborators the number of relationships rises to 28.
I.2 Strategic (Strategy)
Various authors have conceptualized strategies. It could be said that they are: plans for the allocation of scarce resources of organizations, over a period of time, to achieve identified goals. Obviously, a correct strategy must be proposed that reflects an accurate assessment of the environment and especially of the competition. It is stated that it is very easy to propose strategies, the problem is to make them work.
The plans are closely related to the strategy, which can be strategic and operational. The former are intended to achieve the general goals of an organization, while the latter indicate how the strategic plans and mission definition will be implemented.
The concept of strategy can be defined from two perspectives:
a) From the perspective of what an organization intends to do.
b) From the perspective of what an organization finally does.
In the first, the strategy is "the general program to define and achieve the objectives of the organization and implement its mission."
In the second perspective, the strategy is "the pattern of the organization's responses to its environment over time."
I.2.1 Levels of the Strategy.
1. At the corporate level.
This is formulated by senior management to oversee the interests and operations of organizations that have more than one line of business.
2. At the line of business or strategic business unit.
This strategy is formulated to achieve specific business goals. When an organization has multiple interests in different businesses and finds it difficult to organize the various activities, it addresses this problem by creating so-called Strategic Business Units (UCE), which groups all the business activities within a multi-business corporation that produces one type goods and services and treats them as a single business unit.
3. At the functional level.
It is formulated by a specific functional area as an effort to carry out the strategy of the business unit.
An important question in this factor is that what are the priority keys of the company's strategy, (for example, penetration in our markets, development of new products, improve customer service)
I.3 System (Systems)
This category is that of all the procedures - formal and informal - that allow the organization to function, including the capital budget, training, accounting systems, etc.
Systems have a profound impact on the effectiveness of the organization because managers' attention is on them.
The information that people receive and how it is dimensioned or measured, has a strong influence on which to pay attention and on which to act.
Systems means all the processes and procedures that an organization uses to manage itself on a daily basis, including management control systems, performance measurement and reward systems, planning, budgeting, and resource allocation systems, systems information, and distribution systems.
Some key questions to consider when analyzing this model factor:
• Does the organization have the necessary systems to run its business?
• What are the management systems that are most important to the operation of the company? Which ones should be given more attention?
I.4 Staff
It characterizes the number and type of personnel within the organization. They are the people who execute the strategy. Personnel administration contributes enormously in the processes of obtaining, maintaining and developing personnel in their orientation towards strategy.
In personnel administration, the recruitment process is important, which is nothing more than "developing a group of candidates for the job, according to a human resources plan."
Recruitment is the process of finding and attracting qualified candidates to fill vacant jobs in the organization at a given time.
If an organization has been effective in selecting employees, one of the best sources of employment is its own workers.
This policy has three fundamental advantages. First, individuals recruited into the company are already familiar with it; therefore, they have a high probability of success due to their knowledge of the company and its members. Second, an insider advocacy policy helps build loyalty and inspires more effort from members of an organization. Finally, it generally costs less to recruit or promote in this way than to hire outsiders.
Companies also have a vast array of external sources at their disposal to recruit staff. These sources are made up of a set of candidates who may be employed, unemployed or be university graduates.
Among the advantages of external recruitment are the following:
1. It brings new blood and new experiences to the organization. The input of human resources always causes an import of new ideas, approaches. The company is kept updated with the external environment and with what happens in other companies.
2. Renew and enrich the organization's human resources, with experience equal to or better than that of the company's existing personnel.
3. Take advantage of investments in staff preparation and development made by other companies or by the candidates themselves. Sometimes additional training and development costs are avoided and short-term performance results are obtained.
This source of recruitment has the disadvantage that it generally takes longer than internal recruitment, is more expensive and requires investments and expenses in daily announcements, operational expenses, etc. It is less secure, as the candidates are unknown.
In practice, a company almost never does pure internal and external recruitment, that is, separately, but there is always a combination of both; hence, mixed recruitment is established, which can be adopted in three alternatives:
1. It begins with external recruitment and then with internal recruitment.
2. Use external and internal recruitment simultaneously.
3. Initially use internal recruitment, followed by external recruitment.
One step to identify vacancies in the recruitment process is Human Resources planning.
James Stoner in his book "Administration", raises the importance of Human Resources planning, since "a company that does not plan its Human Resources will often warn that it is not meeting the needs of personnel and is not effectively achieving its global goals".
According to Stoner, Human Resources planning has four basic aspects:
1. Planning for future needs.
This is done on the basis of deciding how many people the company will need.
2. Planning for future balances.
It is performed in order to compare the number of employees required with the number of employees hired.
3. Planning for the recruitment or dismissal of employees.
4. Planning for employee development.
It is done to ensure that the organization has a stable and capable supply of staff.
In personnel management, the induction process is important, which is nothing more than "a program designed to help employees easily fit into the organization."
Induction aims to provide the new employee with the information they need in order to work comfortably and effectively in the organization. Induction generally conveys three types of information: general information about the daily work routine; a review of the history of the organization, its purpose, operation and products or services and how the employee's work contributes to satisfying its needs; and a detailed presentation, perhaps a brochure, of your policies, work rules, and staff presentation.
Stoner argues that the Training Programs aim to maintain and improve current job performance, while development programs seek to develop the skills of future jobs.
Training consists of providing new or current workers with the necessary skills to carry out their work.
The need to train newly recruited or newly promoted employees is obvious: they need to learn new skills, and since their motivation is surely high, they can relatively easily become familiar with the skills. On the other hand, training skilled employees to be more effective in their performance can be problematic because their training capabilities are not always easy to determine and, when determined, individuals may not like to be ordered to change. their way of doing work.
On the other hand, administrative development aims to improve the overall effectiveness of managers in their current positions and to prepare them for greater responsibility when promoted. These programs have prevailed in recent years in the face of increasing demands placed on administrators.
It is increasingly recognized that managers differ in ability, experience, and personality, hence managerial development programs are increasingly focused on managers, adapting to meet the special development needs of the managers they serve..
I.5 Style
Style does not refer to personality, but to the pattern of substantive and symbolic actions carried out by general managers.
Style dictates the rules that people follow and how they should work and interact with their peers and clients.
Style captures how work is currently completed in an organization. Although style can be broadly defined by one or two leaders of the organization, it is used here in this model to refer to the general patterns of behavior of members of the management team. For example: Where do they put the focus of their attention? (Inside the company or outside?).
This factor also refers to the cultural style of the organization, the way in which senior management behaves is the model to follow. Relevant actions, including symbolic ones, communicate to each member of the organization regarding the company's priorities and commitments towards the strategy.
The culture of an organization is not finished from the beginning of it, but it is gradually forming; and it is through their culture that organizations identify, integrate and value themselves to give adequate and coherent responses to the environment where they are.
Organizational culture is understood as "the set of shared values, beliefs, attitudes and norms that shape the behavior and expectations of each member of an organization."
All organizations have a culture, but not all cultures have an equal impact on their employees. Strong cultures are those in which values are appreciated by all. The more employees accept the values, the stronger the culture will be.
Some key questions in this S:
- How do managers make decisions? Participatory versus tax - do what I tell you- ?, analytical versus emotional?
- How do managers spend their time? (for example, in formal meetings, informal conversations with consumers, etc.)
I.6 Skills
“Skills” refer to those activities that organizations do best and for which they are recognized.
Refers to the distinctive capabilities of the organization as a whole which may be distinctive skills of people, management practices, systems and / or technologies. These capabilities are possessed by the organization, not by any individual, and typically develop over the years.
Some key questions in this factor:
♦ In which business activities is the company good at?
♦ What new capacities does the organization need to develop and which ones does it need to “unlearn”, to complete in the future?
I.7 Shared values
This point refers to the guiding concepts, values and aspirations that unite an organization around a common purpose.
These are often stated in the organization's motive or mission, as they serve as guiding principles about what's important. These values are usually communicated in a simple way, and may even seem insignificant when viewed from the outside, but for the members of the organization it has great meaning because they help focus attention and provide a broad sense of purpose.
Organizational values determine the success of the organization, if they are truly shared for the sake of the company's ultimate goals.
Values are relatively stable strategic lessons over time that one way of acting is better than its opposite in order to make things work for us.
According to the criteria of experts in this field, the values define the character of an organization, create a sense of identity, establish guidelines to implement its practices, policies and procedures, establish a framework to evaluate the effectiveness of its implementation, provides the foundation for direction that motivates everyone. In short, in an organization values are criteria for decision making, that is why they determine what is important for those involved with the work of the organization and whose support is decisive for the business to have long-term success, because they indicate how we must act to preserve corporate identity and identify the key priorities for the collective good.
It is valid to emphasize that the greater the interrelation between personal values and those of the organization, the better consolidated will be the shared values, which are the ones that the workers and the organization in general assume with great importance, being these goals shared by the majority of people in a group who often shape group behavior and often persist over time.
It is necessary that all members of the organization know the value system of the company, so in its formulation they must be clear, shared and accepted by all, in this way there may be a unified criterion that strengthens the interests of all.
The internalization of organizational values implies that each person identifies and commits to the entity; In this case, management must keep the community informed of what is proposed as beneficial for all.
It is important that the values are legitimized in the organization, so they must be implemented, applied to decision-making, in customer service, in all management. They must be inculcated at all times and in addition, newly recruited staff and those who have been in the organization for the longest time must be trained; But above all, the manager must lead by example because nothing is more important than the power of the actions of executives as a message of coherence and commitment to values.
Salvador García and Shimon Dolan in their book "The Direction for Values" make a fairly broad classification of values, considering that they can be final and instrumental or operational.
Final values are existential goals, which can be subdivided into two types: Personal values: Those to which the individual aspires for himself and answer the question of what is most important to you in life?
Ethical-social values: They constitute aspirations or purposes that benefit the whole of society, such as respect for the environment or respect for human rights and answer the question: What do you want for the world?
Instrumental values are operational means to achieve final values and these can be of two types:
Ethical-moral values: They refer to the modes of conduct necessary to achieve our final values, and are not necessarily existential ends in themselves. They answer the question: How do you think you should behave with those around you? Example: Loyalty can be an instrumental value in preserving friendships.
Competency values: They are more individual, although they are also socially conditioned and are not directly related to morality or guilt. They answer the question: What do you think you have to have to compete in life?
Below is a set of examples of these values:
Table I.1
Source: García Salvador and Dolan Shimon, “The Directorate for Values”. Page 67.
It is necessary that to this meticulous classification of values that Salvador García and Dolan Sihmon offer in their book "The Direction for Values", another group of values must be incorporated that they do not take into account. This group is that of socio-political values, which can be: patriotism, anti-imperialism, cultural identity, solidarity, non-corruption, etc.
Characterization of the "26 de Julio Este" Complex.
On January 23, 1987, the activities of the CIMEX Corporation began in the province of Santiago de Cuba, with the Exchange Office No. 5, for the purchase of gold, silver and jewelry held by the population and a small Retail Store network.
Later in January 1994, the Pan American Stores Chain Division was created.
Oriente, to attend to all the retail sales activity of the units made up of variety and specialized stores; In July of that same year, the CIMEX Distributor and the Technological Group began to operate, which was dedicated to repair services for household appliances, installations, air conditioning and repairs of office equipment.
In 1997, after a long process of emergence of other representations and entities belonging to the corporation itself; The CIMEX Oriente-Sur Branch is created as a territorial organization. This was established on January 1, 1997 and its headquarters is located at Calle 3 # 255 between 10 and 12, Distribution: Vista Alegre, Santiago de Cuba. Said Branch maintained control of the activities carried out in the provinces: Santiago, Guantánamo and Granma until the end of 2002, the date on which Granma became independent and later in 2003 the Guantánamo province was also separated. The new approved structure was designed with 10 Complexes.
The Management of the "26 de Julio Este" Complex is located in the "La California" store. The site it has is privileged because it is located on a very busy and popular street within the city's commercial network; which provides a good influx of customers.
The objective of this Complex is to collect foreign currency through high standards of quality and efficiency in activities of a commercial retail and service nature, aimed at satisfying the needs of the population, intensifying the use of the installed network of services, which allows maintaining participation in the market and perfecting management to contribute to the economic and social development of the country, whose mission and vision are given below.
Mission:
The commercialization of its products through the network of stores, service centers and points of sale. Exercise retail in all its forms with efficiency and effectiveness, providing quality service and consumer protection.
Vision:
Maintain the participation achieved in the market for the sale of merchandise to the population in freely convertible currency, increasing the efficiency and profitability of the commercial management of the Complex's units, while reducing expenses and increasing profits.
The Pan American Stores belonging to this complex are departmentalized; Among the products they offer is perfumery, grooming, clothing for men and women, footwear, saddlery, toy store, furniture, household appliances, computer media, light hardware, sale and rental of videos, office supplies, etc.
There are some of its stores that are specialized, such as La Bombonera and El Trianón. The first in food products such as: sweets, desserts, drinks, soft drinks; and the second in products for children such as: toys, clothing, layette, etc.
Among all the stores that make up the Complex, "La California" is the one that collects the most, since it is the only one that markets all the products offered except gasoline, in addition to being prioritized by the Branch. Within the points of sale, "El Corojo" is the highest collector, this is because it is the one with the largest storage area, in addition to being located in El Cobre, a place where it does not have strong competitors; while "San Rafael" is the Servicentro that earns the most profits, because it offers more products than "El Mandril".
As for the Complex's competitors, it can be said that it presents several such as the case of the TRD Chain of Stores, Cubalse, TRASVAL and Universo, although only the first two are the ones that most threaten the complex due to the fact that the TRD present a large number of units near our stores, and Cubalse presents establishments with much larger premises than those of CIMEX.
Suppliers play a very important role in the merchandise marketing process, since they are in charge of supplying the Complex with the products it needs. Below is a group of the main suppliers that are related to the Complex taking into account the magnitude of its assortment:
• Central Base of Warehouses for Imported Products (BCAPI III)
• Cupet.
• Suchel Camacho.
• Bucanero SA
• Suchel Trans.
• Suchel Lever.
• Processing center.
• Papas & Company.
• Habana Club Internacional.
The Branch takes into account certain attributes for the selection of its suppliers, among these is the one that has competitive prices as well as quality in the products they offer, that have positive responses on reverse logistics, that accept the merchandise delivery agreements and of payment of the same, that do not violate the agreements of collection of merchandise of slow movement, etc.
It is important to note that the Head Office requires the Branch that most of the purchases they make are from national suppliers, that is done to encourage purchases within the national territory, since the costs are lower, since there are no than import them.
Characterization of the Labor Force:
To achieve the essential purpose of this organization, the personnel is of vital importance; Thus, the “26 de Julio Este” Complex has a total of 213 workers, of whom 61 are men and 152 are women, representing 71.36% of the female sex.
Of this total, according to the level of schooling they are classified as follows:
Level of Schooling
University
Technicians
Pre-University Media
Basic Secondary
Figure 2: “26 de Julio Este” Complex School Level.
Source: self made.
As it can be seen in figure 2, in the professional training the Average Technicians predominate, representing these 54% of the total of workers; while university graduates represent 12%.
The ages of the workers are distributed as follows:
Age of the workers
Source: Own elaboration.
In the complex, the recruitment process is carried out, which is carried out by the main Personnel specialist. With new workers, they carry out the induction process; in which the characteristics of the center, the disciplinary regulations, the rules of protection and hygiene are explained to the newcomer and it is presented to the group of workers, to finally implement the training period, which is two years, although in some cases approved by management, this period can last only one year.
Diagnosis of the "26 de Julio Este" Complex on the basis of the "Seven S" Model
The diagnosis of the Complex based on the elements of the “Seven S” Model will allow an evaluation of their current state. In addition, the analysis of the problem bank proposed by a group of experts by areas will be taken into account, which will contribute to a better specification of the difficulties in each S to be diagnosed.
For this, the author applied surveys to workers and clients as well as an interview with the managers of the entity, which will allow to measure the current situation of the complex with respect to the factors that are related in the model and thus determine the problems that exist in the same.
II.3.1 Employee assessment of factors related to McKinsey's “Seven S” model:
For the evaluation of the workers, a survey designed by the author was applied to a total of 67 workers using the formula to calculate the sample for a finite population, whose data will be processed in the statistical package SPSS.12.
Sample calculation for a finite population.
σ2 ∗ N ∗ p ∗ q
n = e2 N − 1σ2 ∗ p ∗ q
Where:
σ = Standard deviation
N = Population size.
p = Proportion of those who possess the attribute. q = Proportion of those without the attribute. e = Sampling error.
Being: P = 50% q = 50% e = 10%
When tabulating the surveys, the following result was obtained:
• The results showed in the 1st question that the workers are partially satisfied with the recruitment process, since only 26.9% of the respondents stated that they were unsatisfied and dissatisfied.
• In the 2nd question -as you consider the organizational structure of the complex- it is evaluated by 50.7% of the respondents between bad and fair.
• The 3rd question related to the way in which the relationships established between the different work areas allow the achievement of the objectives, is considered by 55.3% good, very good and excellent.
• The 4th question related to that of a value system in the complex presents serious difficulties since 74.6% of the respondents do not know of its existence.
• In the 5th question that evaluates the way in which the established processes and procedures allow the effective operation of the complex, 50.7% of workers consider that it is between bad and fair, while 49.3% state that it is very good. and excellent.
• In question 6, 43.3% indicated that they agree and fully agree that there are good opportunities for training and improvement in the complex, while 56.7% state the opposite.
• In question 7, 29.9% of the surveyed workers state that they are partially satisfied with the media, while 38.8% say that they are unsatisfied and dissatisfied, which shows that at all times the media they are not being effective.
• In question 8, 55.2% of the respondents are dissatisfied and dissatisfied with the furniture, so it is necessary to try to improve the facilities of the complex, so that its workers feel comfortable in their jobs.
• The leadership style of the leaders that are exposed in question 9, is valued by 50.8% as good, very good and excellent, but 49.2% assesses it between fair and poor, for which reason necessary to work for. improve the management style of the community leaders.
• Question 10 indicates that 82.1% of the surveyed workers do not know the strategy of the complex; This is a very serious problem since a company cannot get ahead if its workers do not know the plans that the entity has to meet its objectives.
• In question 11, 85.1% of the respondents state that they are not aware of any activity in which the complex stands out, that is, that the complex does not present distinctive capacities that differentiate them from the competition according to their workers.
As a result of the processing of the 67 surveys, it can be concluded that in general, the leadership style of the leaders, the poor knowledge of the strategy, the non-existence of a value system as well as the poor condition of some facilities in the complex, etc. they have to be taken into account since the opinions of the workers show that there are deficiencies in this regard.
Assessment of the external client regarding the provision of the service in the "26 de Julio Este" Complex.
For the assessment according to the external client, a survey was applied, whose data will be processed in the statistical package SPSS. 12.
To determine the number of surveys necessary to apply, the sample size was calculated from the formula for infinite populations, resulting in a sample of 61 clients.
Sample calculation for an infinite population.
Z2 ∗ p ∗ q
n = E2
Where: n = Sample size.
Z2 = Standard error number. Z value = 1.96 (for a 95% confidence margin). p = Proportion of occurrence. q = Proportion of failure.
E = Sampling error.
Being:
P = 80% q = 20%
E = 10%
n = = = 0, 6146560,01 = 61
, 12 0.1
When tabulating the surveys, the following result was obtained:
d) In the first question, a series of attributes are related to see the opinion that the external customer has on the way in which the sales personnel offer the products. Regarding the speed of service, 42.6% of those surveyed stated that it sometimes exists, while 39.3% stated that there is always speed of service; Regarding the kind and courteous treatment, 52.5% of the respondents state that it is always, while 41% state that it is occasionally. As for good bearing and appearance, 100% of respondents say they always have it. 62.3% of those surveyed stated that there is always good air conditioning in the facilities, while 37.7% stated that it is sometimes.
e) 50.8% of those surveyed stated that there is sometimes interest on the part of workers in knowing their tastes and preferences, while 36.1% think that there is always interest.
f) Of the customers surveyed, 68.9% stated that there is always knowledge on the part of the workers about the products and services offered.
g) The preparation shown by the sales staff is evaluated by 42.6% of the respondents of regular, while 36.1% said that it is good.
h) Regarding customer satisfaction, 63.9% of the customers surveyed believe that they are sometimes satisfied, however 36.1% state that they generally leave satisfied after being treated in one of the complex's units.
From the attributes that were evaluated, we can summarize that the speed in the provision of the service in the "26 de Julio Este" Complex is not the best, because few respondents state that it always exists, so the management of the same should be directed to improve this. As for the air conditioning of the units, it can be said that there are problems, since this is how a large part of the respondents evaluated it. In addition, the attention of the workers to the clients must be improved, since in the surveys it is stated that they do not care about their preferences, in addition to the fact that sometimes the sales personnel do not have good training.
In general, the external client leaves the complex units satisfied, thus endorsed by the majority of the respondents.
II.3.3 Bank of problems for each S.
To obtain the bank of problems for each S, an interview guide was developed, which was used to interview the management team of the complex, they were: Manager, Principal Business Specialist, Chief Accounting Specialist, Chief Administrative Officer and Human Resources Specialist, with the function of knowing the problems, difficulties, barriers, limitations and deficiencies that appear related to the model factors. In this analysis, the ideas and different points of view of the interviewees were taken into account, which highlights the main effects caused by elements of the "Seven S" Model.
Bank of Problems for each S:
Strategy:
• The entity does not have a defined Strategic Diagnosis, so it does not have its own work strategy.
• There are no defined Objectives or Work Policies.
Systems:
4. Instability in budget allocation, which means that financial resources are not always available when they are needed.
5. Furniture in poor condition in different areas.
6. Instability in the supply of merchandise, which negatively affects the marketing process.
7. Instability in the supply of resources.
Organizational Structure:
i) Impossibility to decide on investment aspects.
j) The investments of the units are subordinated to the Branch.
Skills:
4. There is no strategy to achieve skills that distinguish the complex from competitors.
5. The general manager lacks conceptual skills.
Personnel:
k) Most of the workers are Middle and Pre-university Technicians.
Style:
l) An organizational culture is not defined in the complex.
Shared values:
m) There is no determined system of values by which the complex is governed.
After having conducted the interview with the manager of the complex, it can be concluded that the organizational structure presented by the "26 de Julio Este" Complex is functional, since all those who carry out a certain activity are grouped by department, say the department commercial, accounting, human resources and administration.
The predominant line of command does not have many hierarchical levels between the highest and lowest administrators, which positively influences the entity since otherwise the decision-making process would be affected.
It is important to note that the structure of the complex does not allow it to carry out investments in its units, which prevents the repair or remodeling of some of its stores or points of sale from being carried out at the appropriate time.
The "26 de Julio Este" Complex does not have a defined strategic design, so they do not know its threats and opportunities, as well as its strengths and weaknesses. Likewise, the units of this complex do not work with long-term, medium-term objectives. nor in the short term, they are simply dedicated to fulfilling the sales plan assigned to them. Similarly, it does not have a defined value system nor does it have an established organizational culture.
II.4.3 Assessment of the internal communication system in the "26 de Julio Este" Complex.
It is important that good communication flows between the work areas in the complex in order to achieve its objectives and in the evaluations of the workers it was stated that this is not the best, for this reason a questionnaire taken from the Department of Business Sciences was applied a total of 27 workers; These are the administrators of the 17 units of the complex as well as the management thereof, whose data will be processed in the SPSS.12 statistical package.
When tabulating the surveys, the following result was obtained:
n) 44.4% of the respondents state that they frequently feel like talking to their peers, although 33.3% state that sometimes and almost never feel like talking. with your coworkers.
o) 55.5% of those surveyed consider themselves to be conversationalists and highly conversationalists, in the same way, 25.9% say that they are somewhat conversational and 18.5% little conversationalists.
p) Regarding the pleasure of talking with their peers, 40.7% say that they like it sometimes, 44.4% are among those who like it and they like it a lot, while 14.8% are indifferent.
q) 66.7% of respondents outline that they are sometimes satisfied with the topics discussed in their work area, while 33.3% say that they are always and almost always satisfied.
r) In question # 5, related to the topics most talked about among colleagues in their work area, they state that they mainly talk about work problems, as stated by 20 of the respondents, 4 state that in addition to that topic, They talk about the personal problems of their coworkers, while the remaining 3 believe that they have no specific topics to discuss with their colleagues.
s) Regarding the knowledge of the goals of the group, 14.8% state that they are not informed what they are, 44.4% state that they sometimes inform them, while 40.8% say that they are always informed. report.
t) 37% of those surveyed have the criterion of sometimes having the information they need to develop in their job, 33.3% state that they do have information, while 29.6% think that they do not.
u) In general sense in question # 8, the workers think that they need to speak with their coworkers for questions related to the work they do.
v) In question # 9, workers state that their colleagues generally need to talk to them about the company.
w) In the question regarding the reason why workers need to speak to their immediate boss, most of them state that they do so to give an account of their work, and to present the company's problems to them.
x) In question # 11 related to why bosses need to talk to workers, most of them ask that it is for work issues most of the time.
y) 70.4% say that they are sometimes satisfied with the communication between him and his boss, while 29.6% think that they are satisfied.
z) 59.3% state that they can talk to some of their colleagues about everything that interests them, while 29.6% believe that they can do it with the majority.
aa) The main means of communication used in the complex is email, thus endorsed by 100% of the respondents, in addition to the morning ones.
bb) 63% think that they are satisfied with the means used in their work area to deliver the information to workers, although 37% state that they are not very satisfied and dissatisfied.
cc) 66.7% is of the opinion that the most appropriate system to give information to workers is in the morning, while 33.3% think that it is through direct contact.
dd) As for the information that workers are most interested in knowing about the company, it was asked by 18 respondents that refer to the operation of the complex, as well as everything related to the daily sales plan, while the other others think they have no preference for any specific information.
ee) 48.1% of those surveyed feel regularly informed, 44.4% state that they are poorly informed and only 7.4% say they are informed.
After completing this questionnaire, it can be summarized that the communication that flows between the workers in the different work areas is not very good, since most of them believe that they are not completely satisfied with the communication. large number of workers who do not know the goals of their area of work, as well as the information they need to perform at their job.
In addition, the relationships that exist between the bosses and their collaborators are not very well established, since most of the respondents think that they communicate with each other for work issues generally, that is, that personal relationships between them are not improvements. That is a deficiency in the complex that can negatively influence the achievement of the objectives.
II.4.4 Valuation of the value system to form in the "26 de Julio Este" Complex.
In the evaluations of the workers about the existence of a value system it was reflected that it did not exist in the complex, for this reason a survey carried out by the author was applied to a total of 27 workers; these being the administrators of the 17 units of the complex as well as its management.
After analyzing the surveys, it can be said that:
ff) In the 1st question, the personal values that the respondents value the most are professionalism as well as having prestige, because the 27 surveyed workers selected these values. Likewise, success, personal fulfillment and demonstrating value are highly popular among the respondents, as this is supported by 15, 18 and 20 respondents respectively.
gg) Regarding ethical-social values, respondents are in favor of social justice.
hh) Of the ethical-moral values, honesty is the most valued by respondents, with 27 respondents in their favor, while mutual trust and sincerity follow with 18 and 19 workers respectively.
ii) In the question related to the values of competence, the respondents were inclined in their entirety for professional improvement, teamwork capacity, initiative, as well as a sense of belonging.
jj) Regarding socio-political values, the values that are preferred by the 27 respondents are solidarity, national identity and idiosyncrasy.
Proposal for improvements applying the McKinsey “Seven S” Model.
In this chapter, a proposal for improvements is carried out that the author of the research proposes on the basis of the McKinsey Model of the "Seven S" as a result of the analysis made in the previous chapter.
First, it is necessary to accurately identify the changing needs and expectations of customers as well as their degree of satisfaction with the products and services of the complex and those of the competition.
You must know the aspects related to what customers expect when receiving a service from an organization.
What do customers expect?
1. Good quality products and reasonable prices.
2. Products that fit your needs and expectations.
3. The offer of the product guaranteeing the speed, security, kindness, courtesy, professionalism and personalization of the service.
4. Feel well treated by the sales staff.
The management of the Complex “26 de Julio Este” must create all the pertinent mechanisms to know and satisfy the aforementioned aspects that the client wishes.
It is recommended to take into account the following aspects:
• Information provided to customers regarding the products offered by the organization.
• Knowledge by sales staff of the products offered
• Facilities for the customer to express their suggestions, complaints and claims through a mailbox or someone in charge of this.
• Attention to complaints.
• Measurement of customer satisfaction.
• Guarantees, etc.
III.1 Proposals for improvements.
To analyze the different aspects that must be taken into account in the elements that make up the McKinsey “Seven S” Model, the author assessed the actions that include putting into practice the process of improvement towards effectiveness, such as: the commitment to the highest executives of the organization, the development of personnel, strategies, values, organizational culture, etc.
The proposal for the reformulation of the mission and the vision of the Complex “26 de Julio Este” is presented below.
Mission To
commercialize with excellence and professionalism in the service, consumer products, personal, for the home and business with more than 5 years of experience in the commercial activity, which guarantees to satisfy the expectations of the clients.
Vision until 2013
We are a leading Shopping Center in the quality and specialization of services according to the current demands of the market that is served and with a sustained growth in income.
III.1.2 Structure:
Regarding this factor, the feasibility of redesigning the existing management structure must be analyzed, so that the complex has a greater influence on the investment process of its units; since in the way it is conceived, there is not enough power to influence this, in addition, that all the agencies are involved and committed to the process of satisfying the needs of the clients.
Taking into account Graicunas' formula on the control of his subordinates, the structure of the "26 de Julio Este" Complex implies too many relationships between the manager and his collaborators, which prevents him from effective control in the different areas of the complex.
In response to this, the author of the research proposes a new structure for the "26 de Julio Este" Complex, which will allow a greater influence on the relations of the collaborators.
Organization Chart Proposal for the "26 de Julio Este" Complex
III.1.1 Strategy:
Taking into account the ignorance of this factor in the complex, the management must define its objectives and work guidelines, for which the formulation of the strategy is necessary. In this sense, the Strategic Design of the entity proposed by Menguzzato in his book "The Strategic Management of the Company must be elaborated. An innovative approach to management ”, so that in this way the objectives, policies and strategies by which it must be guided are exposed in the entity; since the entity does not work on the basis of any strategy.
This strategic diagnosis consists of two parallel analyzes that will jointly allow an evaluation of the current and potential situation of the "26 de Julio Este" Complex in relation to its surroundings.
In the external analysis, it is a matter of studying the impacts of the so-called strategic factors of the general and specific environment and the future evolution of these, in order to detect possible threats and opportunities for the company. For this, the analysis of the political-legal, economic, socio-cultural and technological forces that most influence the development of the institution is necessary.
The internal analysis is about identifying and evaluating the current strategy and the position of the company against the competition, as well as evaluating the results and skills of the company in order to know what are the strengths that it will strive to exploit in a new strategy, as well as the weak points that will be tried to remedy or eliminate. For this, an analysis in each basic functional area of the company is important.
Next, the author exposes the classic process of formulating the strategy that Menguzzato offers in his book “The Strategic Management of the Company. An innovative approach to management ”:
Figure 4: The“ classic ”strategy formulation process
Source: Menguzzato Martina and Renau Juan José “The Strategic Management of the Company. An Innovative Approach to Management ”.
The tutor of the research together with the author of the same and from the following figure:
Figure 5: Pyramid of values and objectives
Source: Gimbert, Xavier. "The strategic approach of the Company". Editorial Deusto Madrid 1995. Page 29.
Taking into account the capital importance that is given to values, since it is the workers who will carry out the fulfillment of the mission, it is considered opportune to reconceptualize the strategic model proposed by Menguzzato and add the concept of values, so the strategy formulation process must be based on the following model:
Figure 6: The "classic" strategy formulation process proposed by the author.
Source: Prepared by the author based on the process proposed by Menguzzato.
III.1.3 System:
Taking into account the bank of problems detected in the previous chapter, there must be more demand on the part of the complex in the allocation of the budget, since the existing instability is negatively influencing the availability of financial resources, allowing there is furniture in poor condition, this having negative incidences both in the external client and in the internal client.
A policy regarding agreements with suppliers must be well defined, as there is sometimes instability in the supply of goods. In this sense, the branch must be more flexible with the complexes and allow them to select their suppliers.
The interrelation between the different work areas is very important since the communication between the different departments, as well as the information that flows between them, is of vital importance for the achievement of the organization's objectives.
III.1.4 Personnel:
Taking into account that it is the people who make up the organization who are going to innovate and those who are going to make customers satisfied or not, the suitability of the personnel entering the "26 de Julio Este" Complex must be guaranteed through compliance job performance requirements, in addition to systematically evaluating job performance.
It must also be achieved that people understand its importance and role in fulfilling the entity's mission, as well as identify its limitations and actively seek opportunities to reinforce its competence, knowledge and experience.
The complex must offer training courses to its managers on a more frequent basis, since the fees assigned by the branch are very few.
On the part of the management of the complex, a series of actions must be carried out to generate commitment among its workers. This consists of raising the predisposition of the employees to fight for the established goals, since a motivated group will give their best; In this sense, employees must have a sense of belonging by making them work as a team, in addition to valuing them more, which means making people important, offering them support, appreciating their work, treating them by name, encouraging them in difficult times as well as thanking them for their efforts.
Many people consider it more important, once their basic economic needs are met, their professional development, feeling valued, considering themselves part of the group, working in a pleasant environment, having autonomy, being able to make decisions, etc.
It is extremely motivating to give employees the opportunity to unleash all their talent, their creativity, to give them the opportunity to contribute, to give their best.
It is necessary to recognize work, which is based on the principle that there must be a difference between who strives to do things well and who does not. In this way the attitude of improvement of the worker is valued and their behavior in favor of the entity is reinforced.
The manager must delegate functions according to the characteristics of the task, the capacity of the person doing the work, the degree of interest of the top management, as well as the time available to carry out the task.
In view of this, it is proposed to take into account the different degrees of delegation, which are set out below:
• Investigate and inform
The manager makes the decision and takes the appropriate action
• Investigate and recommend actions
The manager evaluates the recommendation, make the decision and carry out the actions.
• Investigate and report the action you intend to take.
The manager evaluates the decision made by the collaborator and approves or disapproves.
• Investigate and take actions and report the actions taken.
Here the leader shows confidence in the capacity of his collaborator, but wants to have knowledge of what is happening.
• Investigate and take action.
This is complete delegation and shows complete confidence in the capabilities of its collaborators.
In this sense of delegation, the goal of a leader must be to reach the last degree of delegation, for which he must be willing to give up part of his authority and take risks.
III.1.5 Styles:
Work must be done to create an organizational culture and for workers to know it. Likewise, it is necessary to guarantee leaders who know how to evaluate themselves in order to know the impact of their leadership styles and the identification of their personal goals, in addition to motivating and guiding workers in the fulfillment of objectives, which are capable of involving and Engage staff in improvement actions, as well as in achieving the organization's objectives.
In this sense, a questionnaire on the management style is proposed, taken from the Directorate of Higher Education Institutions, so that the leaders of the complex characterize their management style (See Annex # 11).
The manager must work according to the clients and the needs of his collaborators, bearing in mind that it is necessary to:
Achieve an awareness of the importance of achieving the objectives of the organization.
Get adequate training.
Establish and disseminate the organization's policies and objectives.
Promote an organizational culture, defining and spreading the vision, mission and new organizational values.
4. Guarantee proactive leaders who motivate, guide and support workers in meeting established objectives.
5. Determine and approve the unit's strategic objectives, as well as other actions aimed at achieving better levels of excellence and competitiveness.
If the culture of the organization is oriented exclusively to punish bad behavior, the employee will limit himself to trying not to make mistakes, if, on the contrary, said culture is oriented to reward good behavior, the employee will try to do his best.
III.1.6 Skills:
A strategy must be developed to ensure the skills that distinguish the complex from its competitors. An element to take into account in the elaboration of said strategy is that the CIMEX corporation is technologically more advanced than the other chain stores, since it has the entire accounting and commercial system digitized through computer programs such as: SAFÍN, Statistics, etc. Which allow a better performance in the commercialization of the products. This is a technological skill that the complex has not perceived.
The managers of the complex must be trained to create conceptual skills through courses taught at the University.
In the diagnosis made to the workers of the complex to assess communication skills in it, it was determined that there is no good communication between the different work areas, for this reason, the author of the research proposes that the following questionnaire be carried out taken from the Business Sciences Department to the leaders, to know their written communication skills.
SELF-ASSESSMENT OF STRICT COMMUNICATION SKILLS
This questionnaire examines your current level of skill in your written communication.
Evaluate the following questions between 1 and 7 points. At the end of the questionnaire there is a table that allows you to assess your potential in each skill.
1. I establish the general purpose of my written communication.
2. I systematically obtain the relevant and necessary information to include in my written communications.
3. I organize the information that is going to be included in my written communication (by topics, problems, time frame).
4. I become familiar with the experiences and expectations of my audience.
5. I recognize the needs of the receiver and the effect it may have.
6. I determine how I adapt to the knowledge and needs of the recipient.
7. I seek feedback from the recipients of the information to make sure it has been understood.
8. I choose the words that clearly express the meaning I intend to use.
9. I avoid using words that are not in the recipient's vocabulary.
10. I use concrete names instead of abstract nouns in my written communications.
11. I don't repeat myself unnecessarily.
12. I avoid using technical jargon.
13. My sentences express a single idea.
14. I use subtitles to structure my written communication.
15. I use ideas and bits that facilitate transmission from one paragraph to another.
If you want to improve your written communication skills, you must deepen your knowledge and application of the 5 skills.
III.1.7 Shared values:
Establishing in the complex a system of values that contributes to the achievement of the objectives of the organization is of great importance, on this subject, the author of the research, taking into account the results obtained in the applied survey on values, proposes the following values Shares to which the “26 Julio Este” Complex must pay:
Shared Values
- Unconditional Professionalism.
- Have prestige.
- Honest and caring attitude.
- Sense of belonging.
- Transmission of the Best Values and Image of the Homeland.
- Advanced professional.
- Capacity for teamwork.
- Innovation and Risk Assumption.
In the survey of values carried out on the workers, these were the values that they appreciated the most, that is why it is necessary to work on the part of the manager of the complex in their training. For this it is necessary to take into account how the values are formed in the company, for which the advice of qualified people who have studied this subject is required, so it is recommended that they establish agreements with the Faculty of Economic and Business Sciences of the Universidad de Oriente, since this is a complex phenomenon.
III.2 Action Plan
The following Action Plan is necessary to address the deficiencies detected in the diagnosis of the "26 de Julio Este" Complex in each of the S evaluated.
Conclusions
From the analysis carried out through the characterization of the complex, the diagnosis made by conducting internal and external customer surveys, and the problem bank, the following conclusions
were reached: The general objective of the research was met by proposing McKinsey's "Seven S" Model.
The results of the surveys applied to internal clients can be assessed as follows:
• Little knowledge of the complex's strategy and objectives.
9. There are difficulties regarding the relationships established between the different work areas, thus endorsed by 44.7% of the respondents.
• There are insufficiencies with the existence of shared values in the complex, since most of the respondents do not know them.
9. The results of the surveys applied to external customers can be assessed as follows:
• There are problems with speed of service.
10. The procedure used to determine the bank of problems that affect the quality of the service resulted in a significant number of them.
11. The research carried out showed the feasibility of the McKinsey “Seven S” Model to improve the efficiency of the “26 de Julio Este” Complex.
Recommendations
Taking into account the conclusions stated in the investigation, the following recommendations are made:
• That the results achieved in this investigation be evaluated by the Board of Directors of the "26 de Julio Este" Complex.
• Apply and annually evaluate the McKinsey “Seven S” Model proposed for the “26 de Julio Este” Complex.
• Take the pertinent measures to solve the problems that affect the Complex that do not require the participation of the higher body or large financial resources, taking into account the Internal and External clients.
