Business Process Perspective
The study of the company’s annual reports reveals that it has processes in place for internal audit, internal control and financial reporting (Kemira Oyj, 2014b). The operative organization is divided into four segments with each segment being considered to be a regional business unit (Kemira Oyj, 2014b).
The regional business units are guided by policies defined by Global Functions, which provides guidelines for respective functional areas like supply chain management, human resources and finance (Weiner & Partner, 2013). The regional heads provide operational support and oversee all regional development projects (Kemira Oyj, 2014b). They are responsible for the profits of their regions.
Learning and Growth
The study of information available on Kemira’s corporate governance mechanisms revealed that the organization’s employee engagement index deteriorated significantly from 70% in 2011 to 58% in 2013 (Kemira Oyj, 2014b). It appears that the percentage of employees providing information about tehr organizational engagement has also reduced significantly in recent years (Kemira Oyj, 2014b: Robbins, 2002). Whilst the firm’s website informs that the drop in engagement was probably due to the organizational restructuring and negotiations that were going on at the time of the survey, these figures do reveal inadequate organizational attention to employee learning, growth and advancement ( Kemira Oyj, 2014b). The company’s internal survey also found that accountability for low performance in the organization was an area of weakness (Kemira Oyj, 2014a).
2.9 McKinsey 7S Framework
The Mckinsey 7S model, which was developed by Peters and Waterman in the early 1980s, states that organizational effectiveness depends upon the alignment of three hard and four soft elements, namely strategy, structure, systems, skills, style and shared values (Spencer, 2008).
The analysis of the 7S elements of Kemira are provided below;
The organization has recently made specific changes to its strategy, which include divestment of its ChemSolutions business ( Kemira Oyj, 2014b). The firm is now focused on pulp and paper, oil and gas and mining and water treatment segments ( Kemira Oyj, 2014b). The company is focusing upon enhancing profitability in all three segments and enhancing capital expenditure for differentiated product lines for achieving targeted growth ( Kemira Oyj, 2014a: Kotter, 2006).
The firm continues to focus upon mature markets but is selectively expanding in emerging markets like China, Indonesia, Brazil, Uruguay, Argentina, the Middle East, Chile, Peru and Africa (Kemira Oyj, 2014b). Organizational focus on research and development is being enhanced and the firm is targeting 10% of revenues from innovation sales in 2016 (Weiner & Partner, 2013).
The activities of Kemira are overseen by the management board, which has 10 members. The business is organized into four segments, namely paper and pulp, municipal...