Applying McKinsey's 7S model within managed …
APPLYING McKINSEY'S 7S MODEL WITHIN MANAGED HEALTHCARE
SYSTEMS (MHS) TO ASSESS THE ORGANISATION'S EFFECTIVENESS
AND ABILITY TO ADAPT
by
Adele Malan
SHORT DISSERTATION
submitted in partial fulfilment of the requirements of the degree
MAGISTER COMERCII
in
Business Management
in the
FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES
at the
RAND AFRIKAANS UNIVERSITY
STUDY LEADER: MS. H. JACOBS
November 2003
FOREWORD AND ACKNOWLEDGEMENTS
I dedicate this dissertation in memory of my mother who always inspired me to do
more. I thank God for providing me with His grace and the ability to complete this
study.
I would like to express my gratitude and appreciation to the following people that
have made a contribution to the successful completion of my study:
My study leader, Ms. Hannelize Jacobs, for her guidance and support.
Ms. Riette Eiselin and Adam of the Statkon department for their patience and
assistance in "making it happen".
My family and friends, who have inspired and encouraged, as well,as "put up with
me" throughout this study.
My employer, Managed Healthcare Systems, and especially Mr. David Boyce, for
allowing me to apply the study to the company, as well as for the encouragement
and financial support offered.
My director, Dr. Annamarie Richter, for her interest and support.
The personnel of MHS who supported me, and mostly for completing the survey
and being able to withstand my constant nagging in doing so.
CONDENSED TABLE OF CONTENTS
Page
CHAPTER 1:
INTRODUCTION TO, PURPOSE OF AND
MOTIVATION FOR THE STUDY
CHAPTER 2:
1
MCKINSEY'S 7S MODEL, ORGANISATIONAL
EFFECTIVENESS AND CHANGE MANAGEMENT
17
IN PERSPECTIVE
CHAPTER 3:
THE COMPANY: MANAGED HEALTHCARE
60
SYSTEMS
CHAPTER 4:
APPLICATION OF MCKINSEY'S 7S'S ON
MANAGED HEALTHCARE SYSTEMS
CHAPTER 5:
96
SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS
114
BIBLIOGRAPHY
126
ANNEXURES
133
ii
TABLE OF CONTENTS
Page
CHAPTER 1:
INTRODUCTION TO, PURPOSE OF AND MOTIVATION
FOR THE STUDY
1.1
Introduction and background to the study
1
1.2
Problem statement
5
1.2.1 Research problem
5
1.2.2 Research questions
7
1.3
Motivation for the study
7
1.4
Purpose and benefits of the study
8
1.5
Hypotheses
11
1.6
Research objectives
11
1.6.1 Primary objective
11
1.6.2 Secondary objectives
11
Research Methodology
11
1.7.1 Research strategy
12
1.7.2 Sampling strategy
12
1.7.3 Data collection method
12
1.7
1.7.3.1
13
Technique
1.7.3.2 Measurement Instrument
1.7.3.3
1.8
13
13
Logistics
1.7.4 Data analysis method
14
1.7.5 Ethical requirements
14
Division of the study
14
iii
MCKINSEY'S 7S MODEL, ORGANISATIONAL
CHAPTER 2:
EFFECTIVENESS AND CHANGE MANAGEMENT IN
PERSPECTIVE
2.1
17
Introduction
18
2.2 The McKinsey 7S model
2.2.1 A description of the McKinsey 7S model
2.3
21
Creating organisational effectiveness with the
McKinsey 7S model
24
2.3.1 Structure
26
2.3.2 Strategy
29
2.3.3 Systems
34
2.3.4 Style
37
2.3.5. Staff
44
2.3.5.1
2.3.5.2
Employee recruitment, selection and
assessment
45
Induction, couching and training
46
2.3.5.3 Performance appraisal
2.3.5.4
Personnel motivation
46
47
2.3.5.5 Workplace design, health and safety
and human-machine interaction
48
(ergonomics)
2.3.5.6
Personal, career and organisational
49
development
iv
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