Comprehensive Diagnosis of a Small Service Company

<p>&nbsp;</p><p>Due to its complexity almost all approaches, models and methods of the comprehensive organizational diagnosis presented in the literature are very general and developed, as a rule, in respect of large enterprises. The use of such approaches in each situation requires their adaptation to the specificity of the business, internal features of the enterprise, its opportunities and constraints and the goals of analysis. This is especially true for small businesses, where the complex diagnosis as a necessary procedure of strategic management is carried out far fewer because of its complexity, high cost and lack of awareness of its necessity on the part of the management.</p><p>The general aim of this work is to conduct a comprehensive diagnosis of the electrical installation company &quot;XXX&quot; in order to improve the effectiveness of management.</p><p>To fulfill the purpose of the study the following problems were solved:</p><ul><li>Theoretical aspects of complex diagnosis were studied: basic concepts and principles of diagnosis, types of diagnosis, which are determined by the object and the purpose of analysis, its breadth, analytical procedures, methods of collecting information and evaluating results.</li><li>A desk review of the main approaches to the content of complex diagnosis&nbsp; from Russian and foreign researchers was presented. As a result, it was noted that despitr a large similarity with the content each approach and model has its specific features, depending upon the context in which the diagnosis is considered and the determining aspects.</li><li>Preconditions of comprehensive analysis and specific features of the enterprise &laquo;XXX&raquo; determined by the small size of the company, its belonging to the service sector, nature of the business and the existing management system, were examined.</li><li>On the basis of the identified features and preconditions the main areas of complex analysis were selected- situation analysis, financial and economic analysis, analysis of the motivational system effectiveness and employee awareness of the company&#39;s strategic interests. For each of the areas the relevant methods of analysis were identified - SWOT analysis; horizontal and vertical analysis, analysis of financial indicators within financial and economic assessment; questioning employees for their job satisfaction of the work, motivation system and the awareness of the company&#39;s strategic interests on the basis of a specially designed questionnaire.</li><li>Diagnosis of the enterprise in selected areas were conducted and both strengths and problem aspects of the management system were revealed.</li></ul><p>As strengths were noted:</p><p>==&gt; Quite a large number of competitive advantages and the opportunity for development.</p><p>==&gt; Current financial stability.</p><p>==&gt; In general, relatively high level of staff satisfaction.</p><p>As problematic aspects were noted:</p><p>==&gt; The lack of designed and formulated development strategy, mission and system of clear objectives.</p><p>==&gt; Lack of motivation policy effectiveness;</p><p>==&gt; Lack of effective horizontal and vertical communications.</p><p>&nbsp;</p><ul><li>To overcome the existing problems and increase the effectiveness of management the following key recommendations were given:</li></ul><p>==&gt; To formulate a clear mission and choose the company&#39;s development strategy (according to the results of the situational analysis it is reasonable to select concentrated growth strategy based on the development of product).</p><p>==&gt; To focus on increasing the proportion of fixed assets and productive capacity.</p><p>==&gt; To develop a system of SMART goals, including goals for the enterprise as a whole, and for departments.</p><p>==&gt; To develop a motivational system in accordance with the chosen development strategy and taking into account the interests of employees, as well as fair compensation system based on the key performance indicators.</p><p>&nbsp;</p><p style="margin-left:71.4pt;">&nbsp;</p>