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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