Organizational Behavior



SWOT analysis.

Macro environmental analysis.

Political factors:

Economic factors:

Technological factors.

Environmental factors.

Five force analysis.

The threat of new entrants.

Power of suppliers:

Bargaining power of buyers.

The threat of substitutes.

Rivalry among the existing competition.

Key drivers for change.

Strategies to deal with internal and external factors.

Incorporation of analytical models.



Introduction to Organizational Behavior

Morgan Mckinley is an international professional service recruitment consultancy. It was established in 1988. It has been productively connecting brilliant candidates with vocation opportunities for over 30 years (Morgan McKinley, 2020). The headquarters of the company is based in Ireland. Furthermore, the company specialized in financial service, recruitment, banking recruitment, IT recruitment, commerce industrial equipment, and many more. The main goal of the company is to become a successful recruiter of the best talents for the businesses. The mission of the company is to identify capable individuals and match exceptionally talented candidates to become a leading organization worldwide. Also, the company takes time to understand the needs of the client to produce the ideal results for both parties. The company has over 700 people in 9 countries across the UK, Ireland, Asia, and Australia. The proven techniques have been adopted by the company to provide the best services to the clients. Environmental analysis is a strategic tool that helps to identify the external and internal elements which can affect the overall performance and profitability of an organization. Also, the analysis focuses on assessing the level of threat or opportunities for the organization. With the help of this analysis, the organization can align strategies with the firm's environment. The main aim of this analysis is to conduct a macro and micro environmental analysis.

SWOT Analysis

The framework helps to assess the strength, weaknesses, opportunities, and threats of the organization in the most effective manner.


· Wide range of services: Morgan McKinley handles services in staffing such as provisional and permanent staffing. The organization comments that once they can fit a person into a profile they can assist them with skill growth, pay and contract cooperation and consultancy (Kaplan et al., 2018).

· People focus: the company is highly oriented towards businesses as well as personal clients. It also focuses on maintaining a high degree of client satisfaction. Furthermore, they take time to understand the needs of the business as well as candidates to provide maximum satisfaction.

· Wide network: the company has over 700 people and 9 countries across the UK, Ireland, and Asia Australia. It has strategic only placed at the heart of key financial centres as well as regionally within a particular country which provides wide coverage in all the markets.


· The balance: the company deals with two types of stakeholders including employers and employees. It is highly difficult to maintain a balance between the two. The main challenge is to satisfy both the clients in the most effective manner. 

· Low unemployment rates: the company faces various challenges in different countries due to lower unemployment rates (Phadermrod, Crowder & Wills, 2019). It has been identified that when unemployment is low, companies face various difficulty to get candidates. However, innovations and effective strategies may help the organization to find talented candidates.

· lack of assurance from candidates: however the applicant are recruited against suitable jobs but it becomes a trouble for the company as many of them do not enter into a promise with the business and this eventually affects the overall image of the business. 


· Diversification into training: a large number of organizations are Outsourcing their guidance, learning and development to an advisor. So there is a lot of scope for mentoring and coaching in the human resource space. With the help of experts and professionals, the Morgan McKinley group can easily target this opportunity. 

· Migration statistics: market research helps to understand the current growth of qualified and skilled individuals. Therefore the company can take advantage and use them to increase their potential.

· Opportunities in emerging economies: The Company is also present in rising economies like China and India. It has been Identified that the population of both countries is increasing at a great scale which will offer a lot of opportunities for further growth and development.


· Competitors: organizations continuously facing youth competition. The prices market and strategies of current competition influence the overall market share of the business. However, Morgan Mckinley will develop and implement effective strategies to differentiate themselves from the competitors. Also, the cost-effective solution may be required to reduce the threat of competitors and potentially eliminate them.

· Economy: economy plays a major role in influencing the market share and profitability of any organization. In the current scenario economy of numerous country’s is reducing day by day the business must focus on conducting market research to monitor and assess the basis of economic downturn and develop the measures to reduce its impact.

· The slowdown in IT sectors: it has been identified that it is the prime factor that offered service in emerging economies. However, these actors are showing a delay in terms of occupation. The factor can create an equivalent loss of business for employment.

Macro Environmental Analysis

Pestle analysis is an effective tactical tool to evaluate the Macro environment of the organization.

 Political Factors:

 Political factors play a noteworthy role in identifying the factor that can influence Morgan McKinley’s profitability. Furthermore, the companies operating in staffing and Outsourcing services in more than 70 countries so it has already exposed them to different sort of political, environmental and economic risks. The company needs to analyze different factors that affect its current operations and profitability (Lakshman, Lakshman & Estay,2017). Taxation, wage legislation, and political stability of different countries can affect the staffing and Outsourcing services of Morgan McKinley.

Economic Factors:

The microenvironment includes inflation rates, interest rate, foreign exchange rate, economic cycle and many more factors. The economic state is serious for both the industry using the staffing agency and the applicant. Furthermore, the economic climate like exchange rates can also affect the corporation and its business.

The company will need to identify more than the learning conditions of a capable applicant to understand the cultural and social identity ( Venaik & Sinha, 2018). The shared attitude and approach of the population play a major role in how marketers at Morgan McKinley will recognize the customer's given marketplace and how they plan the marketing, staffing and Outsourcing services. Educational level, culture, attitude of a particular population main highly influences the productivity of Morgan McKinley.

Technological Factors

 It is necessary to conduct a technical analysis to understand the factors that may affect the long-term profitability of the business. Morgan McKinley must focus on understanding the recent technological developments done by the competitors. Also, technological advancement may impact the cost structures in staffing and outsourcing. 

Environmental Factors

 It includes different standard and ecological standards that influence the profitability of an organization. It is necessary for the company to cautiously assess the environmental standards that are necessary to function in those countries. Also, the laws related to environmental pollution and atmosphere change and recycling may affect the overall profitability of the company.

Five Force Analysis

The relationship between the companies and their environment structure is significant which is dependent on the five forces. Furthermore, the strength of these forces will identify how big the chances are for the company within an industry to generate a profit on their invested capital. If the forces are intense then it is less possible for the business to get a return. The analysis will help Morgan McKinley to analyze the factors that may affect their future profitability.

The Threat of New Entrants

 It has been identified that the new players in the industry bring Innovation and new ways of doing things that put pressure on Morgan McKinley. The current innovations and Technology affect the pricing strategy, reduce cost and provide a new value proposition to the customers. However, the company can manage all these challenges by building effective barriers. 

 The company can build its capacity by investing in research and development. With the help of research and development and innovation, the company can attain competitive advantage and establishing effective barriers for the new entrants

Power of Suppliers: 

Suppliers in a leading position can reduce the margin of Morgan McKinley. The more influential suppliers in the staffing industry use the negotiating power to extract superior prices from the business. The overall impact of high bargaining supplier is that it reduces the overall productivity of Morgan McKinley.

 Bargaining Power of Buyers

 This factor defined that Buyers demands different and effective products and services. Hence they want to acquire the best things obtainable by paying the least prices. 

 The Threat of Substitutes

 When a new product or service match similar customer needs in different ways business profitability suffers. Furthermore, the threat of substitute products is high as new entrants are offering new and unique services. However, Morgan McKinley can tackle this by understanding the core need of customers.

 Rivalry Among the Existing Competition

If the competition among existing players in industries is high then it will affect the cost and reduce the overall productivity of the business. Also, Morgan McKinley operates in a very aggressive industry. Furthermore, the company can collaborate with competitors to enhance h the market share rather than just competition contending for a small market.

Key Drivers for Change

All three tools were used by the company to identify the external and internal factors that affect the overall profitability and operations of the business. Furthermore, the three models are cost and time efficient and they are used to highlight the key issues for a particular business (Mamun & Hasan, 2017). Also, the models help to use specific relevant factors like economic Trends, technological development, social attitudes that affect the existing operations. With the help of these three models, Morgan McKinley can make a quick decision or create an effective Action Plan. Morgan Mckinley is facing major challenges due to novel Technology, economic changes, new entrants and competitors (Pierre, 2017). The models play a useful role in defining and identifying the impact of every factor that may affect the productivity and profitability of the business in the most effective manner.

For instance: It has been identified that engagement of qualified candidate is one of the most difficult factors for the recruitment company. Also, effective research and development may be required to understand the needs of the highly qualified candidates. The company must focus on assessing the factors that motivate them and increase their engagement with the business (Mohajan, 2017). Another challenge is the lower unemployment rate in different countries. The current low employment rate across the United States presents a recruitment challenge for Morgan McKinley. When unemployment is low company then they have to work hard to get candidates. Also, the responsibility of candidates is to find out whether they will fit for a particular job or not. Another factor is capturing a large market share as the business environment is highly competitive. It has been identified that the consumer market is an extremely high pace industry where companies are trying different ways to gain more market share on how to dominate the market most effectively. Furthermore, the pestle analysis defines those technological factors which influence the existing operations and productivity of Morgan McKinley.

Strategies to Deal with Internal and External Factors

The analytical models identified that the local economy, reputation of the company competition, Innovation and organizational culture are some of the factors that influence the overall effectiveness of the company (Pahos & Galanaki, 2019). Therefore it is necessary to develop a long-term effective strategy to tackle these factors in the most effective manner. Also, external and internal forces create conflict for employees and affect the overall productivity of the organization. The struggling economy affects the overall operations of the company. The external forces intensify with a stressed economy and put immense pressure on business. Employee retention, safety issues and personal clashes between employees are the top most challenges of every organization. Furthermore, the evidence specified that an effective response strategy of the Morgan McKinley must be linked with decisions and actions that are used to achieve business objectives and goals. Also, the business should focus on adopting a low-cost strategy to establish a long-term competitive advantage by emphasizing and affecting value chain activities. Innovation is also an effective strategy that seeks to refund initially high profits associated with human acceptance of a greatly improved product or service.

 It has been identified organizations must-know how to tap into the pool of the individuals and synergy through motivation systems. The managers must think about the ratio of rewards of performance and the amount of challenge each drop brings. Also, the two-factor theory plays a major role in improving the job and enhancing motivation. The theory defines that there are two major factors mainly known as motivators and hygiene factors. Motivators play a major role in encouraging employees to work effectively and efficiently. On the other hand, the hygiene factors do not support workers to work harder but they will cause them to become unenthusiastic if they are not there.

 It has been identified that Maslow's hierarchy theory put a major emphasis on understanding individual needs. With the help of this theory managers of Morgan Micknley understand how to more effectively motivate employees and make sure their needs are met. The theory helps to understand the needs and their impact on individuals (Eva, 2018). The theory describes that there are five major needs including physiological needs, safety, belonging, Esteem and self-actualization. The effective implementation of Maslow's hierarchy theory helps to find the areas that need major improvement. The major responsibility of any organization is to identify the factors that influence the day to day working style of individuals. With the help of this theory, managers and businesses can develop the ability to identify different needs and make sure that these needs are fulfilled positively.

Incorporation of Analytical Models

 The McKinsey 7s model can be applied in situations where the changes are being brought to the company that may influence one or more of the shared values. Furthermore, the company must be prepared in advance to cope up with the competition and external factors (Gürel & Tat, 2017). The model is highly systematic as it helps to track the impact of the changes. 

 The model is essential as it helps to improve the strategic decision-making process. The analytical tool is BCG Matrix popularly known as Boston Consulting Group matrix. The matrix is divided into four different quadrants which represent a particular phase or stage in the business cycle. Question marks, star, cash cows, and Dogs were the four major components of the BCG matrix. The model will be highly effective for Morgan McKinley as it determines the investment and marketing decisions most effectively. Also, it provides a high-level way to observe the opportunities for each product in the portfolio. With the help of the BCG Matrix, the company can effectively allocate the limited resources to the portfolio so that profit can be maximized over a long period.

Conclusion on Organizational Behavior

It has been identified from the overall analysis that Morgan McKinley can improve its current operation by using effective strategies. The analysis highlighted that numerous factors influence the overall productivity of the organization. The company is facing high competition in different countries. Hence it is necessary to develop an effective long term strategy to cope up with the external factors. Also, different effective models like SWOT, PESTEL, and five force analyses have been used to identify the factors that impact firms' profitability. The analysis also revealed that different analytical models like Mckinsey 7S and BCG matrix can be used by the company to develop an effective action plan for further growth and development.s

Reference for Organizational Behavior

Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view. Problems and Perspectives in Management, (15, Iss. 1), 63-71.

Bismark, O., Kofi, O. A., Frank, A. G., & Eric, H. (2018). Utilizing Mckinsey 7s model, SWOT analysis, PESTLE and Balanced Scorecard to foster the efficient implementation of organizational strategy. Evidence from the community hospital group-Ghana Limited. International Journal of Research in Business, Economics and Management2(3), 94-113.

Eva, T. P. (2018). Recruitment and selection strategies and practices in the private sector commercial banks of Bangladesh: Evidence from human resource practitioners. Eur. Bus. Manag4, 28-38.

Gamble, P. (2017). Successful Strategies for Recruitment and Hiring of Veterans.

Gupta, P., Fernandes, S. F., & Jain, M. (2018). Automation in recruitment: a new frontier. Journal of Information Technology Teaching Cases8(2), 118-125.

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research10(51).

Kaplan, D. M., Palmer, J., Thompson, K., Dustin, S., Arroyo, C., Perera, S., & Marx, R. D. (2018). Recruitment, selection and staffing. In Teaching Human Resource Management. Edward Elgar Publishing.

Lakshman, S., Lakshman, C., & Estay, C. (2017). The relationship between MNCs’ strategies and executive staffing. International Journal of Organizational Analysis.

Mohajan, H. (2017). An analysis of the BCG Growth sharing matrix.

Pahos, N., & Galanaki, E. (2019, April). Staffing practices and employee performance: the role of age. In Evidence-based HRM: A Global Forum for Empirical Scholarship. Emerald Publishing Limited.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management44, 194-203.

Pierre, M. W. (2017). Recruitment Strategies for Manufacturers in Northwest Louisiana.

Specialised Recruitment Agency UK | Morgan McKinley Recruitment. (2020). Retrieved 21 August 2020, from

Ulubeyli, S., Kazancı, O., Kazaz, A., & Arslan, V. (2019). Strategic Factors Affecting Green Building Industry: A Macro-Environmental Analysis Using PESTEL Framework. Sakarya Üniversitesi Fen Bilimleri Enstitüsü Dergisi23(6), 1042-1055.

Venaik, A., & Sinha, S. (2018). Factors affecting students perception towards e-recruitment: A study of naukri. com. Journal of Global Information and Business Strategy10(1), 44-48.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Organizational Behavior Assignment Help

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