Diagnosing Organizations

Diagnosis Defined
Diagnosis is a collaborative process between organizational members and the OD consultant to collect pertinent information, analyze it, and draw conclusions for action planning and intervention.

The Need for Diagnostic Models

O Entry and contracting processes can result

in a need to understand either a whole system or some part, process, or feature of the organization. To diagnose an organization, OD practitioners and organization members need to have an idea about WHAT information to collect and analyze. O Conceptual frameworks that are used to understand organizations are referred to as diagnostic models.

Open Systems Model

Environment
Inputs Information Energy People Transformations Social Component Technological Component Outputs Goods Services Ideas

Feedback

Open Systems Model

O This model recognizes that organizations

exist in the context of a larger environment that affects how the organization performs and in turn is affected by how the organization interacts with it. O This also suggests that organizations and their subsystems departments, group, and individuals share a number of common features that explain how they are organized and function.

Properties of Systems
O Environments O Inputs, Transformations, and Outputs O Boundaries O Feedback O Equifinality O Alignment

Diagnosing Organizational Systems

OThe key to effective

diagnosis is

OKnow what to look for at

each organizational level ORecognize how the levels affect each other

Organization-Level Diagnostic Model

Inputs
General Environment

Design Components
Technology

Outputs

Organization Effectiveness

Strategy

Structure

Culture

Industry Structure

HR Systems

Measurement Systems

Group-Level Diagnostic Model

Inputs Design Components
Goal Clarity

Outputs

Team Effectiveness

Organization Design

Task Structure

Team Functioning

Group Composition

Group Norms

Individual-Level Diagnostic Model

Inputs Design Components
Skill Variety

Outputs
Individual Effectiveness

Organization Design Group Design Personal Characteristics

Task Identity

Autonomy

Task Significance

Feedback about Results

Key Alignment Questions

O Do the Design Components fit with

the Inputs? O Are the Design Components internally consistent? Do they fit and mutually support each other?

Organization-Level Inputs O General Environment

O External forces that can directly or

indirectly affect the attainment of organizational objectives O Social, technological, ecological, economic, and political factors
O Industry Structure

O External forces (task environment)

that can directly affect the organization O Customers, suppliers, substitute products, new entrants, and rivalry among competitors

Organization Design Components

O Strategy
O the way an organization uses its resources

(human, economic, or technical) to gain and sustain a competitive advantage

O Structure
O how attention and resources are focused on task

accomplishment

O Technology
O the way an organization converts inputs into

products and services

Organization Design Components

O Human Resource Systems
O the mechanisms for selecting,

developing, appraising, and rewarding organization members

O Measurement Systems
O methods of gathering, assessing, and

disseminating information on the activities of groups and individuals in organizations

Organization Design Components

O Organization Culture
O The basic assumptions, values, and

norms shared by organization members O Represents both an outcome of organization design and a foundation or constraint to change

Outputs
O Organization Performance
O e.g., profits, profitability, stock price

O Productivity
O e.g., cost/employee, cost/unit, error

rates, quality
O Stakeholder Satisfaction
O e.g., market share, employee

satisfaction, regulation compliance

Alignment
O Diagnosis involves understanding each of the

parts in the model and then assessing how the elements of the strategic orientation align with each other and with the inputs.

O Organization effectiveness is likely to be high

when there is good alignment.