Strategic Management Accounting - Essay Example

Organisational diagnosis involves the thorough evaluation of the processes and issues in an organisation in order to identify the issues that are causing the organisation to fail in its quest to achieve all its major goals and objectives (Van Tonder & Roodt, 2013). Organisational diagnosis is necessary to provide the scientific basis for a structured change in an organisation (Harrison & Shirom, 2011). It therefore uses tools to identify the main processes and change that are relevant to a given organisation and deduces issues with the business process and how there could be changes and adjustments in the processes of doing things in an organisation (Harsh, 2014).

From the facts of the scenario relating to US Postal Services, there is a central issue that is identified with the organisational structure and philosophy of the management and authorities behind the entity. The public-sector worldview stands in the way of the achievement of results for US Postal Services. Therefore, there is the need to examine this central issue which is steeped in the capital structure of the company and how it influences the management and competitive position of US Postal Services.

It is through a thorough organisational diagnosis that the main issues of US Postal Services can be identified and proper solutions can be recommended. The capital composition of US Postal Services is one that fundamentally puts the company into a situation where they will have to focus on stakeholder interests as opposed to shareholder interests. This is because it is a public sector entity and will need to meet the objectives of the government by providing the cheapest form of postal services to all Americans.

This implies that US Postal Services will have to focus on metrics and measures that do not include financial measures and standards like profitability and return on investment. The implication is that they will have to use the resources available to provide the best