1. Organisational Analysis
Understanding the Organisation Session 6
Organisational Analysis
Jane Collings and Pete Watton
Welcome to this Understanding the Organisation module.
These module resources have been developed by Pete Watton and Jane Collings from the Plymouth University.
This introductory pack provides an overview of the module

2. Module Aims Objectives to support the learner in identifying and
reviewing how organisations are structured and managed
to facilitate exploration of the learners’ immediate and wider work context in order to promote professional development
Objectives
By the end of this session you will be able to:
conduct a Stakeholder analysis for your own organisation
conduct a PESTLE analysis of your own organisation
conduct a SWOT analysis of your own organisation
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3. Organisational analysis
Organisations need to regularly reflect on who are their stakeholders and the external ,internal factors and influences that impact on their operation.
The findings from these analyses are then used to review and inform the organisational planning process
Without this analysis organisations cannot ensure their future direction is based on evidence.
This session is going to use three analyses:-
Stakeholder – to identify who are they and what are their interests
PESTLE – to examine external factors
SWOT – to examine internal factors
Successful organisations are constantly assessing both external and internal influences so they are constantly horizon scanning so as far as practical be prepared for changes and can act accordingly
Organisations also need to analyse their stakeholders and the associated risks and influences

4. Stakeholder Analysis Who are the stakeholders? – Anyone who has
an interest in the success of organisations including:-
A stakeholder analysis is used to identify the key persons, groups or organisations with an interest in the organisation
It can provide an overall picture of involvement
It identifies their relationship and interests e.g. a customer, supplier etc
It can identify potential conflicts
Customers
Staff
Local community
Government
Creditors
Suppliers
Stakeholders include a huge range of people
e.g for a Primary school - pupils - teachers – support staff – parents – the community – future parents – local nurseries and pre schools– Local Authority –Department for Education – suppliers – service providers such as grounds maintenance, HR ,school meals service etc

5. Stakeholder Analysis The steps
Draw up a stakeholder table/diagram identifying who the stakeholders are.
Assess each stakeholder's importance and their relative power/influence.
Identify risks and assumptions which will affect the success of the organisation
Many different methods are used including :-
Stakeholder
Importance
Relative influence
Risks/
assumptions
Action
There are many different formats you could use when analysing stakeholders – organisations chose a format that suits - the key is to analyse the importance , the influence and the risks

6. Stakeholder Analysis – different methods
This analysis shows the inner hub being actively involved in changes and the outer hub being interested

7. Stakeholder Analysis – different methods
This analysis shows the interest areas of the stakeholders in the different departments

8. Stakeholder analysis – different methods
This analysis looks at internal and external stakeholders but not the impact of the, on the organisation
Accessed: 05/07/2011 Created by Grochim

9. Example stakeholder analysis – Community Cafe
Importance
Relative
influence
Risks/
assumptions
Action
Volunteers and Trustees
High
Will we have enough to staff the cafe
Ensure we motivate, train and care for our volunteers
Customers / community
They will want to use the cafe
Other cafes will become more popular
We need to consult & survey them on a regular basis
Suppliers
Medium
Low
We need goods at a competitive prices
We need to constantly seek new & different suppliers
Local Authority
Environmental health
High as they can close us
We need to pass all the inspections
Rigorous hygiene standards
Paid cafe manager
The manager will leave
Ensure we motivate, train and care for our paid staff
This is an example from a fictitious community cafe it examines importance – influence risks and actions required to move forward

10.  Activity 1
Stakeholder analysis
Undertake a stakeholder analysis of your organisation or department / section
Ensure you consider both internal and external stakeholders and consider the impact, influence and potential risks they have on your organisation/department/section

11. PESTLE and SWOT Analysis
In order for organisations to plan for the future they need
a clear idea of the external and internal environments they are operating
This can be carried out through using the PESTLE and SWOT tools for analysis
These analysis will offer organisations a view of both the external and internal view of their business
These can be conducted by a range of different people to gain triangulation in the analysis
It is most important it is a candid and honest analysis

12. T- Technological How does technological changes affect you
PESTLE Analysis
An analysis of external influences that impact on an organisation can be carried out using the PESTLE tool
P- Political what is the effect of current or anticipated government policy
E – Economic how does the economic climate affect the organisation – is the market/demand expanding or contracting
S- Socio – Cultural How do attitudes beliefs ethical standards affect your organisation what makes people want what you offer – will changes in demography affect you ?
T- Technological How does technological changes affect you
L – Legal How does the law and changes to the law affect your organisation
E – Environmental How does the environment and sustainability issues impact on your organisation
Consideration needs to be given against all six criteria

13. Example PESTLE analysis – Community Cafe
Political
Economic
Sociocultural
Local Authority support
Tax relief for not for profit organisations
Rules for social enterprise
Food costs
Fuel costs
Wage costs
Insurance
Customer income
Attitudes to volunteering
Unemployment
Attitudes to community
Healthy Eating
Leisure time
Technological
Legal
Environmental
Availability and cost of WiFi
Environmental health law
H and S laws
Employment law
VAT
Energy consumption
Waste disposal
Using the example of the fictitious community cafe the PESTLE offers a useful analysis to analysis and agree the influences that are and will effect the organisation

14.  Activity 2
PESTLE analysis
Undertake a PESTLE analysis of your organisation or department / section
Ensure you consider the impact of these external influences they have on your organisation/department/section

15. A SWOT analysis is an excellent tool for an internal analysis
of your organisation/department/section

16. Example SWOT analysis – Community Cafe
Strengths
Weakness
Good volunteer base
Trustees commitment
Customer base
Strong local community
Lots of other cafes
Location not high street
Pricing levels
Profit margin to pay for manager
Opportunities
Threat
Adult education, health and training
Community garden
Use of young people on work experience
Funding from health
Price of food
Legislation
Council tax
Using the community cafe example
The SWOT starts to focus the objectives of an organisation

17.  Activity 3 SWOT analysis
Undertake a SWOT analysis of your organisation or department / section
To complete this analysis ensure you consider your organisation/department/section objectively

18. References
Drucker, P. (1995) Managing at a Timer of Great Change. Butterworth-Heinemann.
 Investors in People website
Accessed 14th February 2011
Images
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19. References Images Examples:
Kolb, D. (1984) 'Experiential Learning: Experience as the Source of Learning and Development. New Jersey: Prentice-Hall
JISC OER IPR Support Project (2010) OER IPR Starter Pack.
Accessed 31st January 2011.
Images
For further information see:
University of Plymouth Learning Development (2008) University of Plymouth Guide to referencing. University of Plymouth. Accessed 31st January 2011.
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Author
Jane Collings, Pete Watton
Institute
University of Plymouth
Title
Organisational Analysis
Description
PowerPoint Presentation
Date Created
31st March 2011
Educational Level
Level 4
Keywords
UKOER LFWOERK UOPCPDWBL Learning from Woerk WBL Work Based Learning CPD Continuous Professional Development
Creative Commons License
CC-BY-NC-SA
©University of Plymouth, 2010, some rights reserved
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