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Complexity of the organizations has created an immense diversity of approaches for research and consultancy. Based on a review of previous work, proposes a new theoretical model for organizational analysis which examines three levels of organizational consultancy. The first level is the level of business organization. The second level focuses on the internal management and organization of resources. The third level examines the individuals and the human behaviour at work. Presents the situational analysis in organization as an evaluation procedure allowing in‐depth analysis of problems in work situations. The ultimate goal of this procedure is to enable consultants to map out the key elements for evaluation in work situations and to test existing relationships between different factors considered in organizational re‐design. The proposed methodology has been developed as part of a consultancy project based on participant observation and conducted by the author in Bulgaria in 1988.

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