This document outlines a 10-level framework for organizational diagnosis and assessment. It summarizes the first 3 levels: 1) Evaluating performance outputs and outcomes by analyzing products/services over time, against targets, and compared to benchmarks. 2) Evaluating organizational competencies and capabilities by assessing if strategies, tasks, and employee skills match organizational goals. 3) Evaluating utilization of resources by analyzing funding allocation and using measures like profitability, contribution margins, and returns to ensure efficient resource use.

1. SHEILA SANTOS- JOSE
Discussant
INTERNAL ASSESSMENT:
A Framework for
Organizational Diagnosis

2. 10 Levels of
Assessment1)Evaluating Performance Outputs and
Outcomes
2)Evaluating Organizational
Competencies and Capabilities
3)Evaluating Utilization of Resources
4)Evaluating Management Processes

3. 10 Levels of
Assessment5) Evaluating the Four Management Functions
a)The Marketing Function
b)The Operations Function
c)Human Resource Management Function
d)Finance Function
e)Programs and Projects

4. 10 Levels of
Assessment6) Evaluating Teams and Individuals
7) Evaluating Physical Assets and Set- Up, Working
Conditions and Environmental Surroundings
8) Evaluating Organizational Affiliations, Alliances and
Linkages
9) Evaluating Top Management, Board Members and
Leadership
10) Evaluating Strategic Fit or VSOP Consistency

5. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS AND
OUTCOMES• OUTPUTS- are the products or services which the enterprise has
resolved to deliver to its customers.
For a development organization, instead of customers, it
would be catering to client systems or beneficiaries.
• OUTCOMES- are the desired performance indicators like sales
attained (from the outputs produced), profits earned, and
customers satisfied as to their quality specifications, delivery
time expectations and quantities ordered.

6. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS AND
OUTCOMESOUTPUTS OUTCOMES OR PERFORMANCE INDICATORS
1. Health services delivered and medicine
given.
1.Patient paid good money for services and
medicines given. Patients got cured.
2. Number of students who have been
graduated from a school.
2.High level of skills and competencies learned.
Job in chosen field is found by students who
have graduated.
3. Number of dresses made 3.Sales of dresses. Highly satisfied customers
who have no complaints and who give repeat
business.
4. Strict safety measures implemented.
Preventive maintenance of machines.
Workers forced to follow safe production
methods.
4. Zero accidents.

7. • The enterprise or organization can analyze its performance
over time (also called time series or longitudinal analysis)
to see how it has performed in terms of outputs and
outcomes over the years. A historical pattern or trend can
be discerned. Alternatively, the organization can evaluate
itself vis- a vis the targets it had set. A third way is to
benchmark the organization against the best performer(s)
in the industry or against the average industry standards.
LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS
AND OUTCOMES

8. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS
AND OUTCOMES• The organization can proceed to more in-depth analysis by
comparing the inputs poured in versus the outputs
produced. This input-output ratio measures the efficiency
of the organization.
Other efficiency measures include:
• The number of wastes and rejects produced
• The input throughput ratio
• The throughput-output ratio

9. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS
AND OUTCOMES• Throughput – is the processing of the product or service
over a period of time. It is also called the Transforming
Processing. It can be measured in terms of cycle time (i.e.
how long the process takes)
• Input-throughput ratio- A machine input, along with its
technological characteristics, can be assessed as to how
long it takes to process a specified quantity of products.
• Throughput-output ratio – from the other end, the
organization can measure how many outputs are produced
over one processing hour (or any time period)

10. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS
AND OUTCOMES• The organization can compare the costs of producing a
product or rendering a service to the benefits it generates
(cost- benefit ratio). Investments can be compared to
returns (investment- return ratio). These two are called
economy measures.
• The organization can then assess and relate the overall
efforts it exerts and the resources it spends (in terms of
people, pesos, and physical assets) to the performance
indicators or outcomes it is achieving. This is the
EFFECTIVENESS MEASURE.

11. LEVEL 1: EVALUATING
PERFORMANCE OUTPUTS
AND OUTCOMES• Finally, the organization can assess its impact on the customers or
beneficiaries. Impact goes beyond producing goods, rendering
services, generating revenues and attaining profits. It measures the
efficacy of the organization’s products or services from the
customers’ or beneficiaries point of view.
• For example, a lending program designed to alleviate the poverty of
very low income groups can assess its impact by finding out whether
or not the beneficiaries increased their income, and not whether
they repaid their loans. For a pharmaceutical company, impact is
measured by assessing whether the customer who bought the
medicine got cured without any negative side effects.

12. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• its ability to carry out its chosen strategies,
programs, activities and tasks (SPAT).
•Enterprises and organizations endeavor to
craft the best SPAT possible that would
allow them to achieve their performance
outcomes and attain their vision and
mission.

13. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• Take the example of a middle range furniture maker who decided to
change its enterprise positioning. The owner discovered the
technology and art of finishing furniture according to the very high
quality standards of very discriminating buyers. The finishing process
had eight layers. One layer painted the furniture with an off-white
antique finish. Another layer painted “cracks” into the furniture. A
third layer dappled the furniture with “water marks”. A fourth layer
made it appear that the furniture was “abused” and thrown around
for many years. A fifth layer revealed old paint to be “peeling”. And
so on until the eighth layer. The price of the furniture went up from
US 200 a chair (unfinished) to US1, 500 a chair. It was no longer just
furniture. It was an artistic masterpiece.

14. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• The owner realized that she could actually subcontract the entire making
of the furniture without the high value finishing, which her company could
concentrate on. It took her years of training, trial, error experimentation
and long hours of painstaking craftsmanship before she and her people
could do the job. She wanted to go for the sixteen- layer finishing priced
at US5,000 a chair but that would take some time. From producing middle
range furniture, she had progressed to very high end furniture. The vision,
mission and performance outcomes of the entrepreneur went up several
notches. This had to be matched with a very difficult and hard- to- copy
strategy. Necessarily, the operations process changed from a purely
woodworking job to an artistic commissioning of a masterpiece. Marketing
changed too, from one- based on price and volume to one based on a
snobbish approach – if you have to ask the price, you can’t afford it.”

15. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• Organization- wise, the enterprise had to hire artists rather
than machinists, carvers, and sanders. Financially, the ball
game dramatically shifted. There was no more need for high
levels of working capital due to inventories and account
receivables. Each art piece commanded a fairly high price.
Down the line, the specific activities and tasks carried out by
the people where completely revised. This necessitated a
complete overhaul of the organization’s capabilities and
competencies.

16. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• The example illustrates how the second level of assessment
should be done. Specify very clearly the strategies,
programs, activities and tasks (SPAT) needed to achieve the
performance outcomes. Once this is done, the required
capabilities, competencies, values and attitudes of the
people in the organization should match the SPAT perfectly.
If there is a mismatch, then there is a gap that could be
addressed either by more training and development or by
changing the people altogether.

17. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• (Strategies, Programs, Activities and
Tasks) SPAT - is a hierarchical sequencing
which starts from the chosen strategies
and cascades to more focused programs,
down to the detailed activities (or sets of
tasks) and finally, the individual tasks
themselves.

18. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES• The Strategy portion is done by top management.
•The Program part is done by upper level or middle
managers.
•The Activities are most probably assigned to
supervisors or first line managers.
•The Tasks are done by the rank and file or staff.

19. LEVEL 2: EVALUATING
ORGANIZATIONAL
COMPETENCIES AND
CAPABILITIES
• The organization can then proceed to
demarcate broad bands of competencies
needed based on the SPAT. High level
competencies need higher level managers,
and low level competencies need lower level
staff.

20. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES
• Examines where the resources of the enterprise or
organization have been allocated to, and whether or not
they have been efficiently, economically and effectively
utilized.
•-Where the resources go is where the strategy of the
organization really is, notwithstanding official
announcements.
•-Funds flow and cash flow analyses are crucial in this.

21. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES
An enterprise with investments in several products,
geographical branches or lines of business should figure
out whether its resources have been placed properly by
using measures of profitability.
•Entrepreneurs should optimize the utilization of their
resources by calculating the contribution margin of their
product lines, area branches, and functional
departments or divisions.

22. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES
• The entrepreneur should also calculate return on investments
(or assets), return on sales and return on equity (if the
resources are in the form of equity shares).
• For non- profit organizations, there are economic and social
rates of returns and cost—benefit analyses.
• Social organizations can evaluate which resources allocations
have created better impact on their intended beneficiaries.
• The evaluator must assess both past profitability and future
viability.

23. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES
• Aside from profitability, the three other measures of enterprise
sustainability are liquidity, activity, and solvency.
• LIQUIDITY- has to do with meeting short-term obligations
arising from working capital transactions.
• Can the organization sustain its sales growth and its
corresponding demands on cash on hand, accounts receivable
and inventory?
• Can the organization access funds from suppliers and creditors
to meet these working capital requirements?

24. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES• ACTIVITY- ratios are used to gauge the efficiency, effectiveness, and
economy of the enterprise operations by measuring asset turnover ratios
(i.e. cash, receivables, inventory, fixed asset and total assets turnover).
• SOLVENCY- looks at the long- term sustainability by calibrating the
company’s capital structure in terms of short-term debt, long-term debt
and stockholders’ equity.
• Debt to equity ratios and the risks of too much financial leveraging are
assessed.
• Can the organization survive the cyclical highs and lows and still meet its
debt obligations?

25. LEVEL 3: EVALUATING
UTILIZATION OF
RESOURCES• The analyst must then evaluate the investments made by the organization and the
financing it had raised to make those investments. this is called ASSET AND
LIABILITY MANAGEMENT.
• Is the organization properly allocating resources to the best investments?
• Are the investments generating sufficient rates of returns and cash flows?
• Does the financing raised fit the investment needs?
• Does the capital structure match long-term financing with long-term investments and
short-term financing with short-term investments?
• Is the weighted average cost of capital kept to a low and manageable level?
• Are the project returns higher than the cost of capital?

26. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• These processes are the formal and informal systems and
procedures which the organization has adopted and which its
people have practiced as manifested in their actual behavior.
• Management processes enable the organization to pursue its
goals methodically and implement its strategies, programs,
activities, and tasks systematically.
• They often cut across the different functional areas of
marketing operations, finance and human resource
management and are, therefore, cross-functional in nature.

27. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• Examples of management processes are:
• Planning
• Programming
• Budgeting
• Organizing
• Staffing
• Implementing
• Evaluating
Controlling
Coordinating
Monitoring
Leading
Directing
Relating
Compensating
Rewarding

28. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• Examples of management processes are:
• Planning
• Programming
• Budgeting
• Organizing
• Staffing
• Implementing
• Evaluating
Controlling
Coordinating
Monitoring
Leading
Directing
Relating
Compensating
Rewarding

29. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• Each of these processes can actually be translated into a system or
“way of doing things”.
• It can even be manualized into a step by step procedure or simply
remain “generalized” as guidelines for managerial or staff conduct.
• Organizations seek to “professionalize” themselves through the
formalization of these processes.
• The essence of professionalization is to “prescribe” a high standard of
behavior that requires substantive exertion of quality effort, rigorous
due diligence, responsible and timely action, and sound, ethical
decisions.

30. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
In assessing an organization’s management processes,
the top-most concern is to gauge whether or not
they were crafted, carried out, coordinated,
monitored, and conducted well as to their
effectiveness in attaining the organization’s vision,
mission and objectives and implementing the chosen
SPAT with the corresponding allocation of resources.

31. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
PLANNING & BUDGETING
1) Is the planning and budgeting process based on a
good assessment of both the external (industry,
sector, market) environment and the internal
(marketing, organization, human resource and
finance) environment of the organization?
2) Does the planning and budgeting process elicit high
level of participation, involvement and ownership?

32. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
PLANNING & BUDGETING
3) Does the planning and budgeting process lead to better
decision making and implementation?
4) Does the plan or budget flex enough to accommodate major
changes in the environment?
5) Is it rigorously done to stand the test of the marketplace?
6) Does the plan or budget provide good milestones, guideposts
and clear-cut performance indicators?
7) Are there mechanisms in place for instant feedback and
correction?

33. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• ORGANIZING & STAFFING
1) Is the organizing process based on a good assessment of what the
organization needs in relation to its objectives, strategies, programs,
activities and tasks?
2) Does the organization recruit people who are most suited to its
requirements?
3) Is the organizational architecture designed very well?
4) Are the structures responsive to the strategies?
5) Are the people properly trained and developed to carry out the prescribed
activities and tasks?
6) Are the people properly motivated to do their very best?

34. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• EVALUATING & MONITORING
1) Has the organization devised an evaluation and monitoring system based on the
desired performance indicators?
2) Are the performance measures congruent with the vision, mission, and objectives
of the organization?
3) Is the evaluation and monitoring process perceived as fair and just?
4) Does it have support from all concerned?
5) Are the results of the evaluation and monitoring system used properly for
purposes of promoting, rewarding, retaining, rehabilitating or even, firing
personnel?
6) Do the managers and staff use the system for improving their performance and
changing their behavior according to the goals of the organization?

35. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• LEADING & DIRECTING
1) Are the organization’s goals, strategies, and action programs
articulated well by its leaders?
2) Is it clear to all what the organization’s directions are and how
everyone can reach the desired destination?
3) Do they motivate properly, through their own behavior, the strategies
and programs they put in place, the values they espouse, the rules
and guidelines they set, the positive and negative stroking they give,
the inspiring and rallying they exert, the evaluation and feedback
they undertake, and the rewarding and promoting they subsequently
mete out?

36. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
• COORDINATING & ORCHESTRATING
1) Does the organization coordinate and orchestrate the different functions,
departments, divisions and units such that they all conspire to achieve common
goals?
2) Is there continuous communication and feedback such that there is a minimum of
misunderstanding, malfunction, and misconduct?
3) Is there proper sequencing of activities and tasks such that delays, inefficiencies,
duplication of effort, repetition of tasks and confusion are avoided?
4) Does everybody march at the same tune?
5) Do the different groups know what the other groups are doing?
6) Do they support one another?

37. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
•CONTROLLING
1) Does the organization have proper control over its
people and their actuations, its assets and their
utilization, its expenses and their wise usage?
2) Are the critical resources (people, pesos, and
physical assets) optimized?
3) Are wastages and excesses, thrills and frills, rejects
and redundancies minimized?

38. LEVEL 4: EVALUATING
MANAGEMENT PROCESS
•COMPENSATING & REWARDING
•Does the organization give a fair day’s pay for a fair
day’s work?
•Do the compensation and reward systems serve to
retain and affirm the performers and lessen unwanted
turnovers?
•Does the organization provide the proper incentives to
improve productivity?

39. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
•Is the most difficult and complicated of all.
•It strikes at the heart of the major functions
of marketing, operations, human resource
and financial management, and the programs
and projects contained within those
management functions.

40. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE
MARKETING
FUNCTION
1. Positioning
2. Product (Service)
3. Package
4. Place
5. Price
6. People
7. Promotions &
Advertising

41. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS1. THE
MARKETING
FUNCTION
1.Positioning
• is the major strategic move that
establishes the organization’s unique
selling proposition.
How has the organization positioned
itself in the marketplace?
What precise segments of the
market is it targeting?

42. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS1. THE
MARKETING
FUNCTION
2. Product (Service)
• -To address the needs of the chosen market, the
organization offers an array of products and services that
precisely matches the chosen market. The evaluator must
determine whether the products and services in the same
market, and cost effective- meaning they are produced at
a cost that can turn in profits for the enterprise (or
generate the desired benefits in the case of development
organizations)
• Does the product meet the quality specifications of the
customer?
• Is it delivered at the agreed upon time in the correct
manner?

43. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE MARKETING
FUNCTION
3. Package
– refers to the terms and conditions
attached to a product.
- Consumer products must be physically
packaged to appeal strongly to customers.
- Service packages are harder to define.
- Service packages are the right
combination of service delivery processes
and steps.

44. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE MARKETING
FUNCTION
4. Place
• Are the products sold and services rendered at the
proper location?
• Are they accessible and available to the consumers?
• -The evaluator must assess whether the branches,
outlets and distribution points of the organization are
able to reach the desired market segments in a
convenient and timely way.
• -The viability, profitability, and attractiveness of each
place must be established according to some
investment and return criteria and according to well
defined market objectives.

45. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE MARKETING
FUNCTION
5. Price
•Does the pricing strategy of the
company maximize sales and
profits?
•Does the price conform to the
tolerance levels of the
company’s target market?

46. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE MARKETING
FUNCTION
6. People
•Does the organization have the right
people to sell and distribute the
products or services?
•This includes dealerships,
franchisees and distributors.
•Are the sales people properly
trained, motivated and rewarded?

47. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
1. THE MARKETING
FUNCTION
7. Promotions and Advertising
• Are the promotional and advertising expenses
achieving the desired market results?
• Are they effective?
• Do they get the right amount of market
response from customers or beneficiaries?
• Are these responses translated into sales or the
adoption of desired social practices in the case
of development organizations (e.g. health or
education agencies)?

48. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS2. THE OPERATIONS FUNCTIONS
-Operations management ensures that the products sold and services rendered to
the customers go through the best input-throughput-output processes with the
least inefficiency and the maximum productivity.
-One customer quality, delivery and price expectations are known, the
organization must design a product or service delivery system that is most
responsive to customer needs and wants.
-The delivery system must be configured according to the physical or intangible
outputs demanded by the customer. From there, the organization must ascertain
what the required inputs and the best transforming processes are.

49. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
2. THE
OPERATIONS
FUNCTION
1. Manpower
2. Machines
3. Materials
4. Methods
5. Management

50. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS2. THE OPERATIONS FUNCTIONS
•-The evaluator asks whether the M’s have been properly
selected based on their ability to deliver the outputs at
the desired cost and in the most expeditious manner.
(This presumes that the impact of Money is available).
•-The M’s go through a transformation process when the
inputs are converted to outputs.
•-This is the actual production or delivery of services.

51. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS2. THE OPERATIONS FUNCTIONS
• -The evaluator must find out if the work flow has been designed well,
wastages and rejects kept to very low or zero levels, productivity raised
to the maximum and inventory (in-bound, in-process and out-bound)
reduced to the minimum without impairing sales.
• -A production process analysis is essential to determine the above.
• -The evaluator must also assess the organization’s capacity to produce
the outputs, how much of this capacity is being utilized and the correct
balancing of this capacity (i.e. the right combination of M’s to move
products and services quickly with minimal bottlenecks caused by
imbalances in the production line.)

52. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
1. Recruitment
2. Retooling
3. Routing
4. Retaining
5. Reviewing
6. Rewarding
7. Recycling

53. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
1. Recruitment
• is the proper selection and hiring of
people
• Do the recruits have the right
competencies, capabilities, attitudes and
values?
• Are they trainable and promotable?
• Will they fit the culture of the
organization?

54. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
2. Retooling
•- is the training and
development practices of the
organization.
•Are the people enabled to
reach their maximum
potentials?

55. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
3. Routing
• is the proper assignment of people to the
right positions, jobs or tasks.
• It is also the proper career pathing and
job enlargement of people.
• Is there good career development
program in place?
• Do the people fir the right jobs or
positions?

56. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
4. Retaining
• - focuses on the ability of the organization to
ensure that its people remain very productive and
quite happy to be with the company. This includes
doing analysis of the organization’s culture, its
work ethics and style of management. It also
includes a study of how well the organization
motivates and keep its staff.
• Is the organizational morale high?
• Are people very productive?
• Do they seem happy with the organization?

57. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
5. Reviewing
• - is the proper appraisal of people according to the
performance parameters set.
• Is the performance management system fairly and
justly designed, administered and executed?
• Does the evaluation system properly account for
and recognize the outputs and outcomes of people?
• Are the performance measures very clear to the
people and do they accept these measures
wholeheartedly?

58. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
6. Rewarding
•- is the proper compensation and
recognition of the people.
•Are they paid well for their talents,
efforts, outputs and outcomes?
•Are they recognized for their
performance?

59. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
3.HUMAN
RESOURCE
MANAGEMENT
FUNCTION
7R’
7. Recycling
• -is the organization’s ability to transfer or
rotate its people to other meaningful jobs
within the organization or to recycle them
back to the outside world (i.e. retirement,
retrenchment and outplacement.
• Do people have upward and lateral mobility?
• Are their prospects for growth within and
outside the organization great?

60. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
4. FINANCE
FUNCTION
Financing
Investing
Negotiating
Administering
Numbers gathering
Cash Management
Evaluating the past, present, future

61. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS
4. FINANCE
FUNCTION
Financing
Investing
Negotiating
Administering
Numbers gathering
Cash Management
Evaluating the past, present, future

62. LEVEL 5: EVALUATING THE
4 MANAGEMENT
FUNCTIONS5. PROGRAMS & PROJECTS
 Are some of these programs and projects cross-functional in nature (i.e. cuts
across all functions)?
Examples of these include capital expenditure programs and projects,
marketing programs and projects, human resource programs and
projects, and so on.
Are these programs and projects generating the expected revenues,
benefits and profits?
Are they adding to the image and prestige of the enterprise?
Are they worthwhile keeping?

63. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
-An organization’s worth is
determined by the sum of its parts.
Teams and individuals are the vital
cogs of the organizational wheel.

64. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
For field-based units at the forefront of providing
services or generating sales, their performance
can be easily evaluated through:
*number of beneficiaries they have assisted (for
development agencies),
*the revenues they have realized or the profits
they have contributed.

65. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
Teams and individuals can also be assessed according to:
*the geographic,
*product line or
*market segment they are serving
It is more difficult to evaluate teams and individuals who
render centralized services like accounting, human
resource management or general administration.

66. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
The best way to evaluate them is through the
satisfaction levels attained by their internal
customers.
Each team or unit is expected to produce
outputs or outcomes that fulfill the needs
and wants of internal or external client
systems.

67. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
*Unfair to assess teams and individuals on an
absolute basis because they may be servicing
geographic areas or types of customers with
different potentials
The organization must determine what those
different potentials are and evaluate the teams
and individuals based on their relative
performance.

68. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
For example, a salesman servicing the prime Central
Business District should be expected to generate more
revenues than a salesman assigned to a sixth class
municipality.
For development organizations, serving a widely
dispersed population residing in mountainous terrain
would be far more difficult than serving a compact
community in an urban residential subdivision.

69. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
*In evaluating teams and individuals, the various levels
of assessment used for the entire organization can be
replicated but on a more micro basis.
This means that the evaluator can assess:
a)organizational capabilities
b)resources used
c)programs and projects carried out and
d)process undertaken by teams and individuals.

70. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
The performance and productivity (or lack
thereof) of a team can always be traced to some
underlying causes.
The evaluator must take the leadership, culture,
morale, knowledge, skills, competencies
cohesion, and motivation of the team into
account.

71. LEVEL 6: EVALUATING
TEAMS & INDIVIDUALS
As for the individuals, the evaluator must
determine the gaps in their capabilities and the
deficiencies in their attitudes, which may
explain their underperformance.
If these gaps can be redressed, it is well and fine.
If not, then the weakest link in the organizational
chain will affect the overall worth of that
organization.

72. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGS-The competitiveness of an enterprise and product or
service quality of a development organizations can at
times, be established by the state of its physical
assets, more particularly the machinery and
equipment it owns.
-These assets or facilities determine the
organization’s productivity through the technology they
contain.

73. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGS
Aging and obsolete physical facilities often
augur the demise of heretofore performing
enterprises.
Decrepit and substandard equipment diminish
the performance of the most well-meaning
service organizations.

74. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGS
Inside the factory or service facility
*lighting,
*ventilation,
*pollution levels,
*water conditions
*physical set-up,
*layout,
*work flow,

75. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGSOutside
*road system for the ingress and egress of goods and
services,
*the sewerage and drainage system,
*utility connections (electricity, water and
communications) and
*weather or climate conditions.

76. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGSIn the case of one manufacturing firm, it was able to
double its production output simply by:
-relocating to a more spacious factory,
-laying out its equipment differently, and
-improving its work flow and working conditions.
The output was quadrupled when ultra-modern
equipment were purchased to remove bottleneck areas.

77. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGSThe science of management is most applicable to
the physical aspects of a business or a
development organization.
The art of management applies more to people
aspects since human beings are not as predictable
as materials, machinery, and methods.

78. PHYSICAL ASSETS & SET-UP,
WORKING CONDITIONS AND
ENVIRONMENTAL
SURROUNDINGSBeyond the firm, there is bigger environment that affects the
competitiveness and performance of an organization.
* Proximity to sources of supply or convenient access to the
market improves competitiveness.
*The presence of good, highly skilled labor is another factor.
*The transport, logistics and distribution systems surrounding
the firm are likewise relevant.
All of these physical environmental factors should be evaluated
because they affect the cost of doing business or the cost of
providing services.

79. LEVEL 8: EVALUATING
ORGANIZATIONAL AFFILIATIONS,
ALLIANCES & LINKAGES-An organization’s strength lies not just within itself but the network
of organizations it is linked, allied and affiliated with.
A business with a strong franchise, distributorship or dealership
network, a very robust supplier support system and a superb
subcontracting or outsourcing capability obviously has advantages in
terms of access to suppliers, production facilities, market reach and
coverage.
Affiliations with funding sources or institutional markets are
important for purposes of short-run viability and long-term
sustainability.

80. LEVEL 8: EVALUATING
ORGANIZATIONAL AFFILIATIONS,
ALLIANCES & LINKAGES
Symbiotic partnerships and synergistic mergers strengthen the
organization. Other organizational affiliates include industry
associations, advertising and public relation firms, and
auditing firms.
The 8th level of assessment requires the evaluator to fully
comprehend the organization’s sphere of influence and
ability to leverage its power.
An organization that remains an island to itself is not likely to
win out in the long run.

81. LEVEL 8: EVALUATING
ORGANIZATIONAL AFFILIATIONS,
ALLIANCES & LINKAGES
There are new technologies, new markets, new systems, new
products, new competencies and new strategies that
constantly demand new alignments and affiliations.
The evaluator must assess what additional strengths and
advantages these supply, outsourcing and marketing
networks or partnerships bring, if any.
They can, however, also lead to weaknesses and
disadvantages. What may have worked in the past may no
longer be appropriate for the coming years.

82. LEVEL 8: EVALUATING
ORGANIZATIONAL AFFILIATIONS,
ALLIANCES & LINKAGES
The assessor must determine what resources
and environmental forces are brought to the
organizational equation by an organization’s
linkages and connections. The costs and
benefits of these organizations to the
enterprise must be regularly calculated.

83. LEVEL 9: EVALUATING TOP
MANAGEMENT, BOARD MEMBER,
& LEADERSHIP
-The more sensitive part of assessing an organization is
the evaluation of its top management, board, and
leadership
More often than not, they are the people commissioning
the evaluation in the first place. If the mandate is
coming the board or from the owners, the evaluator can
be little bit more honest in the assessment of top
management.

84. LEVEL 9: EVALUATING TOP
MANAGEMENT, BOARD MEMBER,
& LEADERSHIP
There are 3 important qualities demanded of
board members, leaders, and top management.
1. The ability to govern and provide direction.
-This includes vision, mission and objective setting
ad the formulation of policies, corporate
guidelines, ethical standards, strategies and
programs.

85. LEVEL 9: EVALUATING TOP
MANAGEMENT, BOARD MEMBER,
& LEADERSHIP2. The ability to mobilize, motivate, and raise the
people’s morale to perform according to their best
potential.
-is necessary for competitive positioning and adept navigation through
difficult market terrain and highly volatile environments.
3. To ensure that there are adequate operating and
control systems and that these are working well,
with the attendant checks and balances properly in
place.

86. LEVEL 9: EVALUATING TOP
MANAGEMENT, BOARD MEMBER,
& LEADERSHIP
The good leader is one who is able to adapt to changing situations,
inspire people to achieve great expectations and transform them into
dynamic performers.
Top management must be assessed according to their ability to plan,
organize, direct, implement, motivate, evaluate, control and reward.
These are the cross-functional processes needed to effect highly
coordinated team work.
Finally, board members, top management and leaders must be
measured in terms of the performance of the organization’s functional
and staff units because they have command responsibility over the
entire organization.

87. LEVEL 10: EVALUATING
STRATEGIC FIT OR VSOP
CONSISTENCY
Finally, there must be an assessment of the strategic fit or
consistency among the Vision- Mission- Objectives – Key
Result Areas and Performance Indicators (VMOKraPi) set, the
Strategies, Programs, Activities and Tasks (SPAT) adopted, the
Organizational Structures, Systems and Resources applied
and the People Competencies, Capabilities, Skills, and
Attitudes. (This is the VSOP acronym)

88. LEVEL 10: EVALUATING
STRATEGIC FIT OR VSOP
CONSISTENCY
For example, a business enterprise that has set market
reach (or wide geographic coverage) as its objective must
necessarily adopt a strategy that attains this objective.
This strategy can include branching, franchising and setting
up a nation-wide distribution or dealership system.
From this strategy, the organizational structure, systems
and resources should necessarily follow.

89. LEVEL 10: EVALUATING
STRATEGIC FIT OR VSOP
CONSISTENCYIf branching is the chosen strategy, then the business enterprise must establish
the branch network which would be supervised by regional or area heads.
From the organizational structure, systems and resources chosen, the correct
people should be hired based on their competencies, skills, knowledge,
experience, exposure and attitudes.
If market share were the preferred objective, however, the strategy might change
to focusing on population centers with high purchasing power.
The organizational modality which matches this strategy must be chosen.
Finally, the right people who can deliver the strategy and fit the modality must be
hired.

90. LEVEL 10: EVALUATING
STRATEGIC FIT OR VSOP
CONSISTENCY
In addition, 3 management process which link objectives, strategies,
organization and people must be evaluated:
Are the motivation, evaluation, controlling and rewarding processes
encouraging the people to perform the strategies or tasks?
Are the organizational structure, systems, and resources allowing
planning, decision making and implementing processes to lead to the
accomplishment of the strategies and tasks?
Are the organizational structure, systems, and resources providing the
right leadership, selecting the right people, fostering better relationships
and supporting the people?

91. LEVEL 10: EVALUATING
STRATEGIC FIT OR VSOP
CONSISTENCYDiagram 4.1 below shows the
interrelationships of
strategies, organization and
people, and the management
processes involved in order to
achieve the vision, mission,
and objectives.
Diagram 4.1 VSOP Strategic
Fit