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Organizational Diagnostic Models

Ing. Josef Kak, Ph.D. Department of Business Administration Faculty of Economics VB Technical University of Ostrava josef.kasik@vsb.cz 2011

Importance of Organizational Models


often identify vital organizational variables and depict the nature of the relationships between these key variables help us to understand more clearly and quickly what happens in organizations and thus aids the diagnostic process help us to interpret data about an organization

Selected diagnostic models


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Force Field Analysis (1951) Leavitts Model (1965) Likert System Analysis (1967) Open Systems Theory (1966) Weisbords Six-Box Model (1976) Congruence Model (1977) McKinsey 7S Framework (1981-82) Tichys TPC Framework (1983) High-Performance Programming (1984) Diagnosing Individual and Group Behavior (1987) The Burke-Litwin Model (1992)

Force Field Analysis (FFA, 1951)


Author: Kurt Lewin

Driving Forces

Current State of Affairs (Problem)

Restraining Forces

Desired State of Affairs (Goal)

Equilibrium Interrupted

Disequilibrium During Change

Equilibrium Reestablished

Force Field Analysis - Example


Restraining Forces
trade unions middle management shop floor supervisors rank & file employees

Desired State: 24 hour service

Driving Forces:

top management customers consultants airlines

Current State: 16 hour service

Change Process

Leavitts Model (1965)


Structure

Tasks

Technology

People

Likert System Analysis (1967)


is focused on 7 organizational dimensions: 1) motivation 2) communication 3) interaction 4) decision making 5) goal setting 6) control 7) performance

Likert System Analysis (1967)


Likert developed a 43-item questionnaire related to the seven organizational dimensions example extent to which supervisors willingly share information with subordinates

Provides minimum information

Gives subordinates only information superior feels they need

Gives information needed and answers most questions

Seeks to give all relevant information and all information they want

Likert System Analysis (1967)


System 4 four different types of management systems:
1) 2)

Exploitative-Authoritative (autocratic manager,

3)

4)

communication based on one-way orders, discipline), Benevolent-Authoritative (authoritative style prevails, selective communication with subordinates, partially tolerates their views and opinion), Consultative (cooperation between supervisors and subordinates, trust with limits created by supervisors, important decisions are made by supervisors), Participative(great extent of faith and autonomy of subordinates for their decision-making, informal mutual communication).

Likert System Analysis (1967)


System 1 System 2 System 3 System 4

Motivation Communication Interaction Decision-making Setting goals Control Performance

X X X X X X X

Open Systems Theory (1966)


Environment

Inputs

Transformation

Outputs

Weisbords Six-Box Model (1976)


Purposes

Relationships

Leadership

Structure

Helpful Mechanisms

Rewards

Input

External Environment

Output

The Nadler-Tushman Congruence Model (1977)


Assumptions of the model: 1. Organizations are open social systems within a larger environment. 2. Organizations are dynamic entities. 3. Organizational behaviour occurs at the individual, the group and the system level. 4. Interactions occur between the individual, group and system level of organizational behaviour.

The Nadler-Tushman Congruence Model (1977)


Transformation Process Inputs
Environment Resources History
Informal Organization Task Formal Organization

Outputs
Organization Group Individual

strategy
Individual

feedback

The Nadler-Tushman Congruence Model Inputs


Environment all factors, incl. institutions, groups, individuals, events etc., that are outside the organization, but that have a potential impact on that organization Resources assets to which the organization has access incl. human resources, capital, information etc., as well as less tangible resources (recognition in the market etc.) History patterns of past behaviour, activity and effectiveness that may affect current organizational functioning Strategy stream of decisions about how organizational resources will be configured to meet demands, constraints and opportunities

Definitions of Congruence in the Congruence Model


Pair
Individual-Formal Organization

Issues
How are individual needs met by the organizational arrangements? Do individuals have clear perception of organizational structure? Is there a convergence of individual and organizational goals? Do individuals have skills and abilities to meet task demands? How are individual needs met by the tasks? How are individual needs met by the informal organization? How does the informal organization make use of individual resources? Are organizational arrangements adequate to meet the demands of the task? Do organizational arrangements motivate behaviour that is consistent with demands? Does the informal organization structure facilitate task performance or not? Does it hinder or help meet the demands of the task?

Individual-Task Individual-Informal Organization Task-Formal Organization Task-Informal Organization

Formal Organization- Are the goals, rewards and structures of the informal Informal Organization organization consistent with those of the formal organization?

McKinsey 7S Framework (1981-82) "Managerial Molecule"


Style
(styl veden)

Soft Ss
Staff
(zamstnanci)

Skills
(dovednosti)

Shared Values
(sdlen hodnoty)

Structure
(struktura)

Systems
(systm zen)

Strategy
(strategie)

Hard Ss

Tichys Technical Political Cultural (TPC) Framework (1983)


Input Environment history Resources Legend: Strong Impact Weak Impact

Mission strategy

Tasks

Prescribed Networks

People

Organizational processes

Emergent Networks
Performance Impact on people Output

Tichys Technical Political Cultural (TPC) Framework (1983)


Technical subsystem available resources, production processes; rational, based on empiricism and scientific methods Political subsystem dominant and powerful organizational groups Cultural subsystem shared symbols, values etc. which form the organizational culture
Rope Metaphor: 3 subsystems (strands): Technical Political Cultural

Tichys Technical Political Cultural (TPC) Framework (1983)


The TPC framework raises 4 questions which are vital to organizational diagnosis:
1.

2.

3.

4.

How well are the parts of the org. aligned with each other for solving the organization's technical problems? How well are the parts of the org. aligned with each other for solving the organization's political problems? How well are the parts of the org. aligned with each other for solving the organization's cultural problems? How well aligned are the 3 subsystems of the org., the technical, political and cultural?

Tichys Technical Political Cultural (TPC) Framework (1983) TPC Matrix


Organizational Components
Mission/ Strategy Tasks Prescribed networks People Processes Emergent networks amount of withinsystem alignment

Technical

Core Systems

0 1 0 1

1 2 1 4

0 0 1 1

1 2 2 5

2 2 0 4

1 2 2 5

5 9 6 Score = 20
Min.0 Max. 36

Political Cultural

amount of required org. component change

0 no change

1 moderate change

2 great deal of change

High-Performance Programming
Nelson and Burns (1984)
The High Performing Organization Level 4 The Proactive Organization Level 3 Empowering leadership, focus on excellence "Purposing" leadership, focus on the future, purpose, planning and development startegies Coaching leadership, some clarity of purpose and goals, capability to adapt to changing environment Enforcing leadership, poor outcomes, often unclarity of purpose and goals

The Responsive Organization Level 2 The Reactive Organization Level 1

High-Performance Programming 11 dimensions or variables


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

time frame focus planning change mode management structure perspective motivation development communication leadership

Likert-type scale 5 Strongly Agree 4 Agree 3 Neither Agree Nor Disagree 2 Disagree 1 Strongly Disagree

Diagnosing Individual and Group Behaviour Harrison (1987)


ENVIRONMENT
Org. Level Resources Purpose, Processes, Structure, Technology, Behaviour, Culture Outputs

Resources Group Level

Group Composition, Structure, Technology

Group Behaviour, Processes, Culture

Group Performance

Resources Individual Level Individual Characteristics Ind. Attitudes, Beliefs, Motivation

Individual Performance

QWL (quality of work life)

Main lines of influence

Feedback loops

Diagnosing Individual and Group Behaviour Harrison (1987)


Key Factors Affecting Performance and QWL Individual Level Individual Characteristics Physical and mental state, social background and traits, training and education, individual needs Expectations, satisfaction with current procedures, trust, equity, experienced rewards Group Level Group Composition, Structure, Technology Social and occupational composition, structure (rules and work procedures, flexibility, clarity of task assignments, responsibilities), technology (impact of work procedures and physical arrangements) Relationships among group members (cohesion, feelings of attachment to group, similarity of views), processes (communication, cooperation and conflict, decision making, problem solving), supervisors' behaviour, culture

Individual Attitudes, Beliefs, Motivation

Group Behaviour, Processes, Culture

The Burke-Litwin Model (1992)


External Environment

F E E D B A C K

Mission and Strategy

Leadership Culture

Structure

Management Practices

Systems (policies & proced. )

Work Group Climate

F E E D B A C K

Skills/Job Match

Motivation

Individual Needs and Values

Performance

Transformational Factors in the B-L Model


External Environment

Leadership Mission and Strategy Performance Culture

Transformational dynamics is associated more with leadership, represent fundamental changes and is more related to organizational culture.

Transactional Factors in the B-L Model


Structure Management Practices Systems (policies & procedures)

Work Group Climate Skills/Job Match Individual Needs and Values

Motivation

Performance

Transactional dynamics is associated more with management, represent everyday interactions and exchanges and is more related to organizational climate.

Empirical Studies Related to the B-L Model


Variable External Environment Leadership Culture Management Practices Structure Systems Relationship => Culture => Mission & Strategy => Management Practices => Performance <==> System (policies) => Performance => Climate => Climate => Individual Needs & Values Author(s) Gordon, 1985 Prescott, 1986 Fleishman, 1953 Weiner & Mahoney, 1981 Kerr & Slocum, 1987 Denison, 1990 Schneider, 1980 Schneider & Bowen, 1985 Schneider & Snyder, 1975 Joyce & Slocum, 1984 Jordan, 1986

Empirical Studies Related to the B-L Model


Variable Climate Skills/Job Match Individual Needs & Values Relationship Author(s) => Motivation Performance Rosenberg & Rosenstein, 1980 => Motivation Performance Hunter & Schmidt, 1982 => Motivation Performance Guzzo, Jette & Katzell, 1985

Literatura
1. 2.

WEISBORD, M. R. Organizational Diagnosis. Perseus Books, 1978. HOWARD, A. Diagnosis for Organizational Change: Methods and Models. The Guilford Press, 1991.

3.

Organizational Diagnostic Models: A Review & Synthesis. Dostupn online na http://www.leadersphere.com/img/Orgmodels.pdf