Organizational capability refers to an organization's inherent ability to use its strengths to exploit opportunities and overcome weaknesses and threats. It is a potential to perform better through effective use of resources. An organization's capabilities are determined by its tangible and intangible resources as well as its behavior in utilizing resources. Developing a profile of an organization's financial, marketing, operations, management, and personnel capabilities is important for understanding its strategic advantages and competencies which stem from its strengths and weaknesses.
2. ORGANISATIONAL CAPABILITY
Organizational capability is the inherent capacity or
potential of an organization to use its strengths and
overcome its weaknesses in order to exploit
opportunities and face threats in its external
environment.
It is a potential or capacity to perform better
Without capabilities, resources are of no value.
3. Organizational Capabilities produces Strategic
Advantage.
Strength & Weaknesses provides Organizational
Competencies.
Strength & Weaknesses depends upon two factors-
Organizational Resources
Tangible Resources
Intangible Resources
Organizational Behaviour
It is the ability of usage of available resources, by which
an organization can create a position
4. Importance of organizational capabilities
profile -
Financial Capability Profile-
Sources of funds
Usage of funds
Management of funds
5. Marketing Capability Profile-
(a) Product related
(b) Price related
(c) Promotion related
(d) Integrative & Systematic
Operations Capability Factor-
(a) Production system
(b) Operation & Control system
(c) R&D system
6. General Management Capability -
(a) General Management Systems
(b) External Relations
(c) Organization climate
Personnel Capability Factor -
(a) Personnel system
(b) Organization & employee characteristics
(c) Industrial Relations