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Seven-S Framework
The Seven-S (7S) framework is a managerial tool for analyzing and diagnosing organizational performance and effectiveness. The framework was jointly developed by Tom Peters, Robert Waterman, Richard Pascale, and Anthony Athos in the late 1970s. Tom Peters and Robert Waterman were both management consultants at McKinsey & Company, a well-known consultancy firm whose management consulting activities were based on applied research in business and industry. The 7S framework was adopted as a main analysis tool by McKinsey; hence, the framework became known as McKinsey’s 7S framework. The framework consists of seven key organizational and managerial variables/elements categorized as either soft or hard variables. Soft variables are staff, styles, skills, and shared values, and hard variables are strategy, structure, and systems. The framework is based on the assumption that to achieve organizational effectiveness, focusing merely on the rational aspects of organizations such as structure and strategy are not enough. Organizations are complex unities, and to deal with the complexity in any organizational improvement project or program, all seven variables have to be considered simultaneously because they are interdependent and mutually reinforcing. Since the framework was introduced, it has been widely adopted by practitioners as well as by academics for multiple purposes, such as an analytical framework of organizations, as a diagnostic framework of organizational effectiveness and efficiency, as a strategic improvement tool, and so on. Hundreds of organizations have been analyzed using the framework, which remains still popular. The framework’s simplicity and memo-rability/recognizability are also contributing factors to its popularity. This entry reviews the contents of each variable of the framework as well as its historical background and concludes with descriptions of the relevance and importance with some managerial applications.
Fundamentals
As described earlier, the seven variables are considered key organizational factors that are interdependent. These factors interact, dynamically influence each other, and determine the way organizations perform. The factors’ interdependency is well illustrated in the way the model is designed.
The shared values variable is considered to be the interconnecting center of all other variables. Shared values were originally called superordinate goals of organizations. Shared values refer to the guiding concepts and meaning or the purpose of organizations’ existence that are shared among all organizational members; hence, shared values provide the foundation of the corporate culture. Normally, shared values do not include “materialistic” and measurable goals such as financial results or return on investments. Rather they refer to “spiritual”/ethical elements that can touch peoples’ hearts deeply and can provide a deeper meaning for their work.
Structure is defined as the main skeleton of the organizational chart. Structure is the way in which work tasks are organized and the way various organizational units are linked to each other. Organizations can be structured in a variety of ways—for example, in a hierarchical way, as a matrix, a network, centralized, decentralized, an adhocracy, a hub, a chain, and so forth.
Strategy refers to plans or course of action for allocating scarce resources to achieve the identified goals over time. Strategic decisions are about the long-term as well as the short-term direction of an organization to achieve competitive advantage over competitors. It is about the way to transform an organization from the present position to the desired position described by its goals. Hence, strategy affects the tactical and operational activities of an organization.
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- Nature of Management
- Managing People, Personality, and Perception
- Affect Theory
- Affective Events Theory
- Big Five Personality Dimensions
- Causal Attribution Theory
- Cognitive Dissonance Theory
- Emotional and Social Intelligence
- Fairness Theory
- Image Theory
- Individual Values
- Job Demands–Resources Model
- Locus of Control
- Organizational Commitment Theory
- Organizational Identification
- Organizationally Based Self-Esteem
- Psychological Contract Theory
- Psychological Type and Problem-Solving Styles
- Schemas Theory
- Self-Concept and Theory of Self
- Self-Fulfilling Prophecy
- Sensemaking
- Social Cognitive Theory
- Social Construction Theory
- Social Identity Theory
- Social Information Processing Model
- Theory of Emotions
- Theory of Reasoned Action
- Theory of Self-Esteem
- Type A Personality Theory
- Managing Motivation
- Managing Interactions
- Circuits of Power and Control
- Conflict Handling Styles
- Critical Theory of Communication
- Dialectical Theory of Organizations
- Dual-Concern Theory
- Genderlect and Linguistic Styles
- Influence Tactics
- Informal Communication and the Grapevine
- Information Richness Theory
- Organizational Assimilation Theory
- Patterns of Political Behavior
- Principled Negotiation
- Social Exchange Theory
- Social Information Processing Model
- Social Movements
- Social Network Theory
- Social Power, Bases of
- Strategic Contingencies Theory
- Structuration Theory
- Theory of Cooperation and Competition
- Trust
- Managing Groups
- Asch Effect
- Group Development
- Group Polarization and the Risky Shift
- Group Punctuated Equilibrium Model
- Groupthink
- High-Performing Teams
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- Norms Theory
- Role Theory
- Social Facilitation Management
- Social Identity Theory
- Social Impact Theory and Social Loafing
- Virtual Teams
- Work Team Effectiveness
- Managing Organizations
- Actor-Network Theory
- Agency Theory
- Behavioral Theory of the Firm
- Bureaucratic Theory
- Complexity Theory and Organizations
- Compliance Theory
- Cooptation
- Differentiation and the Division of Labor
- Dramaturgical Theory of Organizations
- High-Reliability Organizations
- Knowledge-Based View of the Firm
- Matrix Structure
- Meaning and Functions of Organizational Culture
- Multifirm Network Structure
- Organic and Mechanistic Forms
- Organizational Culture and Effectiveness
- Organizational Culture Model
- Organizational Culture Theory
- Organizational Identity
- Organizational Socialization
- Organizational Structure and Design
- Sociotechnical Theory
- Stewardship Theory
- Systems Theory of Organizations
- Technology and Complexity
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- Technology and Programmability
- Typology of Organizational Culture
- Managing Environments
- Strategic Management
- Agency Theory
- Balanced Scorecard
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- Business Policy and Corporate Strategy
- Competitive Advantage
- Core Competence
- Diversification Strategy
- Dynamic Capabilities
- Excellence Characteristics
- Firm Growth
- First-Mover Advantages and Disadvantages
- Game Theory
- Hypercompetition
- Knowledge-Based View of the Firm
- Modes of Strategy / Planned-Emergent
- Organizational Effectiveness
- Product-Market Differentiation Model
- Resource Orchestration Management
- Resource-Based View of the Firm
- Seven-S Framework
- Six Sigma
- Stakeholder Theory
- Strategic Decision Making
- Strategic Flexibility
- Strategic Frames
- Strategic Groups
- Strategic Profiles
- Strategy and Structure
- Strategy-as-Practice
- SWOT Analysis Framework
- Tacit Knowledge
- Upper-Echelons Theory
- Value Chain
- Human Resources Management
- Attraction-Selection-Attrition Model
- Behavioral Perspective of Strategic Human Resource Management
- Career Stages and Anchors
- European Model of Human Resource Management
- High-Performance Work Systems
- Human Capital Theory
- Human Resource Management Strategies
- Human Resources Roles Model
- Knowledge Workers
- Model of Occupational Types
- Organizational Demography Model
- Personal Engagement (at Work) Model
- Protean and Boundaryless Careers
- Strategic International Human Resource Management
- Theory of Organizational Attractiveness
- Theory of Transfer of Training
- International Management and Diversity
- Acculturation Theory
- Cultural Attitudes in Multinational Corporations
- Cultural Intelligence
- Cultural Values
- Diamond Model of National Competitive Advantage
- GLOBE Model
- High- and Low-Context Cultures
- Institutional Theory of Multinational Corporations
- Interactional Model of Cultural Diversity
- Managing Diversity
- Multicultural Work Teams
- Organizational Demography
- Social Identity Theory
- Transnational Management
- Managerial Decision Making, Ethics, and Creativity
- “Unstructured” Decision Making
- Analytic Hierarchy Process Model
- Bounded Rationality and Satisficing (Behavioral Decision-Making Model)
- Brainstorming
- BVSR Theory of Human Creativity
- Componential Theory of Creativity
- Decision Support Systems
- Decision-Making Styles
- Escalation of Commitment
- Ethical Decision Making, Interactionist Model of
- Evidence-Based Management
- Experiential Learning Theory and Learning Styles
- Garbage Can Model of Decision Making
- Image Theory
- Interactionalist Model of Organizational Creativity
- Intuitive Decision Making
- Investment Theory of Creativity
- Managerial Decision Biases
- Moral Reasoning Maturity
- Participative Model of Decision Making
- Programmability of Decision Making
- Prospect Theory
- Stages of Creativity
- Strategic Decision Making
- Management Education, Research, and Consulting
- Academic-Practitioner Collaboration and Knowledge Sharing
- Action Research
- Analytical and Sociological Paradigms
- Appreciative Inquiry Model
- Bad Theories
- Critical Management Studies
- Engaged Scholarship Model
- Evidence-Based Management
- Large Group Interventions
- Management (Education) as Practice
- Multilevel Research
- Narrative (Story) Theory
- Organizational Development
- Positive Organizational Scholarship
- Process Consultation
- Psychological Type and Problem-Solving Styles
- Theory Development
- Theory of the Interesting
- Management of Operations, Quality, and Information Systems
- Kaizen and Continuous Improvement
- Adaptive Structuration Theory
- Decision Support Systems
- Gantt Chart and PERT
- Lean Enterprise
- Management Control Systems
- Quality Circles
- Quality Trilogy
- Strategic Information Systems
- Technology Acceptance Model
- Technology Affordances and Constraints Theory (of MIS)
- Theory of Constraints (TOC)
- Total Quality Management
- Management of Entrepreneurship
- Management of Learning and Change
- Action Learning
- Business Process Reengineering
- Continuous and Routinized Change
- Double Loop Learning
- Experiential Learning Theory and Learning Styles
- Force Field Analysis and Model of Planned Change
- Learning Organization
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- Organizational Development
- Organizational Learning
- Process Theories of Change
- Punctuated Equilibrium Model
- Quantum Change
- Strategies for Change
- Management of Technology and Innovation
- Architectural Innovation
- Dual-Core Model of Organizational Innovation
- Innovation Diffusion
- Innovation Speed
- Lead Users
- Open Innovation
- Patterns of Innovation
- Product Champions
- Profiting From Innovation
- Sociotechnical Theory
- Stages of Innovation
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- Technology Acceptance Model
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- Technology S-Curve
- Transfer of Technology
- Management and Leadership
- Attribution Model of Leadership
- Authentic Leadership
- Charismatic Theory of Leadership
- Cognitive Resource Theory
- Competing Values Framework
- Contingency Theory of Leadership
- Leader–Member Exchange Theory
- Leadership Continuum Theory
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- Servant Leadership
- Situational Theory of Leadership
- Substitutes for Leadership
- Theory X and Theory Y
- Trait Theory of Leadership
- Transformational Theory of Leadership
- Management and Social / Environmental Issues
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