Abstract

Indian experience shows that human resource managers seldom undertake an analysis of the organization to ascertain its health of an organization before implementing any strategic intervention. At best they look at an analysis of financial ratios and that in this author’s opinion is not enough. It is opined that before any strategic policy intervention takes place it is imperative that management diagnoses the economic health of the organization. Using data from a Nigerian brewery owned by a multinational enterprise (Unilever) this paper has attempted to demonstrate how the economic health of an organization can be gauged. The data is old no doubt but the point being made here is to demonstrate “how” to undertake an organizational diagnosis using mainstream economics and nothing else.

Key Words: Cobb-Douglas   Organizational Diagnosis   Estimating Production Function