ORGANIZATIONAL DEVELOPMENT AND CHANGE

ASSIGNMENT

SUMMARY – CHAPTER NO. 5

SUBMITTED TO:
PROFESSOR MUHAMMAD ALI
SUBMITTED BY:
GULREIZ AYAZ

INSTITUTE OF BUSINESS AND ADMINISTRATION

UNIVERSITY OF PUNJAB LAHORE
 Summary – Chapter No. 5

DIAGNOSING

1.1 Diagnosis – Introduction:

Diagnosis can be described as a thoughtful process that assists in knowing the organization's
functionality as well as in getting the required information to design change interventions. By the
successful diagnosis, all the organizational development practitioners and client members can
determine which organizational issue is more considerate, what will be the mechanism of
collecting and analyzing of data, and what will be teamwork mechanism for the development of
action steps from the diagnosis.

In any organization, diagnosis is being practiced all the time. For the assessment of the proceedings
of changes and understanding of organization effectiveness drivers, all the managers, workers, and
OD practitioners are always active. Diagnosis must not be confused with the medical definition
and model as it is used more broadly in comparison to this.

In organizational development, diagnosis is considered a concerted process among the members

of the organization and OD practitioners. This process assists in the collection of relevant
information, its analysis, and ultimately in concluding planning actions and intrusion.

1.2 Diagnostic Models Need:

For the comprehensive understanding of the organization, there exists a conceptual framework that
is used by the OD practitioners and is known as a 'Diagnostic Model'. An organization's variety of
features, environment, and effectiveness are indicated by the diagnostic models. Hence, it can be
said that these diagnostic models indicate the areas that must be examined and what information
must be acquired to determine how an organization is functioning.

Though, interpretation of reality is represented by all the diagnostic models and hence they focus
on the specified critical organizational features ignoring some other making a biased diagnosis. To
overcome this issue, all the OD practitioners must carefully select a diagnostic model that will
discourse an organization’s current issues and will ensure inclusiveness as well.

Potential diagnostic models can be made by a set of concepts and relationships that will together
make a whole system. Most of the sources of diagnostic models include articles and books that
comprise discussions on the working or functioning of the organization.

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 Summary – Chapter No. 5

An organizational development practitioner's experience is also another source of diagnostic

models as it offers a wealth of practical information on the working of the organization.
Unfortunately, a minimum part of the massive experience has been included in the diagnostic
model.

1.3 Open-System Model:

In this model, a system is considered as a unit comprising many sub-systems or components. A
system functions to integrate its sub-components such as an organization provide services by
coordination of its all departments. In organizational development, a generalized framework
underlying diagnosing is known as the "Open-Model System".

Organizations as Open System

In the context of an open model system, an organization exists as an environment that affects
organizational performance. Based on the findings of the model, an organization acquires detailed
input from the environment and then performs transformation based on the outputs. This is
indicated as per the below figure.

Figure 1: Open System Model

Moreover, the open model also recommends that organization and its components do share some
common features explaining how organizations are systematized and are functioning. The
properties of the open system are summarized as below.

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 Summary – Chapter No. 5

• Environment exists outside the system's boundary and affects

either directly or indirectly on the outputs of the system.
Environment Information and resources are likely to be exchanged with the
environment by the open system, i.e., organizations and groups.
• An organizational system is comprised on these three properties.
• Inputs consists of human resources such as, information, energy,
Inputs, and materials that enters from environment into the system.
Transformation, • The process of converting system's inputs into outputs is known
as Transformation and its carried out by both social and
and Outputs technological components.
• A result of system's transformation sent to environment is
known as output. Hence, transformed inputs represents output.
• The boundaries help to distinguish between environment and its
Boundaries system. The boundary of the system vary in permeability and
determined by physical location.
• An information related to the outputs and performance of the
system can be termed as feedback. It maintanes system in the
Feedback steady state and assists organizations to adapt variable
circumstances.
• An alignment of different parts of system determines overall
system's efficiency. Moreover, its the representation of extent to
Alignment which one component's features and operations support each
other.

Organizational System’s Diagnosing

There are three levels based upon which organizations can be diagnosed. The three levels are as
follows;

A. Organization Level
B. Group Level
C. Individual Level

Organizational Level:

It's the highest level and is inclusive of the strategies of the company, its structure, and its
processes. Along with this, large organization units; i.e., divisions, subsidiaries, and strategic
business units can be diagnosed at this level as well. The below figure represents the
comprehensive model for diagnosing organization-level systems.

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 Summary – Chapter No. 5

Figure 2: Organizational Level Diagnosis Model

Group Level:

This level is the next lowest level and is inclusive of group design and methods which are used for
arranging communications among members.

Figure 3: Group Level Diagnosis Model

Individual Level:

The lowest level is the individual level and it is inclusive of jobs or duties that are designed to
provoke obligatory tasks behaviors.

Figure 4: Individual Level Diagnosis Model

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 Summary – Chapter No. 5

1.4 ORGANIZATIONAL-LEVEL DIAGNOSIS:

In diagnostic activities, the organizational level of analysis is one of the broadest systems that help
to understand the organizational functions. Hence, it is mandatory to observe specific inputs,
components of design, and finally the alignment of two sets of scopes.

1.4.1 Inputs:
As described above, three environmental types and inputs affect organization design. Three
environment classes affect the functions of an organization as mentioned below.

Environmental Types

General All the external forces that affects an organization either directly or
Environment indirectly are inclusive in general environment. The external factors
consists of social, technological, regulatory, and ecological forces. The
general environment doesn't directly connect with organization but only
affect it.

Task A task environment of an organization is defined in terms of an industry's

Environment structure which is represented by forces such as; supplier and buyer power,
alternative's threats, entry threats, and riverly between competitors.

Enacted Enacted environment is based on the perception and depiction of the

Environment members of organizations on general and task environment. Hence,
perception of all the environments must be clear before they influence
decision making process.

Environmental Dimensions
For the sound understanding of work inputs and environment, the rate of change and complexity
in terms of the environment must be understood. The rate of change is considered based upon the
understanding of the Dynamic-Static range.

Dynamic Environment: The environment that changes impulsively and speedily is known as a
Dynamic Environment. And

Static Environment: The environment that changes slowly and expectedly is known as Static
Environment.

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In the general and task environment, several different elements exist that refer to the complexity
of the environment which ultimately affects the organization. Every organization has a different
level of environmental complexity. A key dimension is known as "information uncertainty" is
present in the environment affecting information processing and organizations tend to seek
removal mechanism of this uncertainty to be aware of how to transact with the environment.

1.4.2 Design Components:

An organization’s design is composed of four components as indicated below, which are
surrounded by intermediate input and output strategy and culture respectively. An organization’s
mission, goals, objectives, strategic resolution, and functional policies are inclusive in the
complete statement of strategy.

Management
Technology Processes

Structure Human Resource

System

Technology: In the case of Technology, it is concerned with the mechanism by which an

organization converts its inputs into products and services. During the mechanism, a core
transformation process is represented and is inclusive of methods, workflow, and equipment.

Structure: An overall work of the organization is divided into sub-units and then assigning to
individuals is carried out in the structure mode. Moreover, coordination is carried out until the
completion of work. Hence, the structure is closely associated with the technology of an
organization. In this mode work is divided based upon, i.e.,

➢ The functionality
➢ By product or service
➢ By customer and combination

Management Process: To process information, making decisions, and for operational controls,
management processes use to be carried out. Management processes analyze organizational
performance to sense and control the nonconformities.

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Human Resource System: The system is inclusive of mechanisms for the organization member’s
selection, development, appraising, and rewarding,

1.4.3 Outputs:
A measure of the effectiveness of the organization's design is analyzed in terms of outputs. Three
types of outcomes are inclusive in this i.e.,

➢ Financial Outcomes
➢ Productivity Concerns
➢ Stakeholder Satisfaction

1.4.4 Alignment:
For the determination of alignment, knowledge of the above-mentioned elements is required.
Following alignment or fits, related questions must be analyzed.

1. Does the organization’s strategy is aligned with inputs? To the general and task
environment, an organization’s strategy must be receptive inclusive of external forces, threats,
and opportunities considered in making strategic choices.
2. To jointly support the strategy, do the organization design components fit with each
other? The design components of the organization will mutually support and strengthen the
organizational behaviors when the organizational strategy is flexible and responsive.

1.4.5 Analysis:
After the assessment of the organization's inputs, design components, and outputs, the next step
would be the analysis of how well they unite. On the priority, a fit between environmental inputs
and strategy would be analyzed. Next would be the analysis of the design component's alignment
either it supports the strategy or not?

1.5 GROUP-LEVEL DIAGNOSIS:

In all kind and sizes of organizations, working groups are prevalent and consists of several people
working on a shared task and connected either face to face or via any electronic communication.
As per above figure 3, the group level model components for diagnosis are as described below.

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1.5.1 Inputs:
To group design, organizational design and culture are major inputs consisting of design
components that exemplify larger organizations within which a group is entrenched with
technology, structure, management processes, and human resource systems. The accuracy of the
diagnosis can be enhanced by information collected on the group’s organization design context.

1.5.2 Design Components:

Five major components are present in the group design’s components and are mentioned and
described below.

Goal Clarity
• Goal clarity means how well the group has understanding about its goals.

Task Structure
• It involves the overall structure of the group's work i.e., how it has been designed.
There are two key dimensions based upon which task structure varies and are
coordination of member's efforts and their tasks behavior regulation.

Group Composition
• Membership of groups are concerned in group composition. Group members vary
based on some demographical variables like age, education, experience, expertise
and skills, and knowledge.

Team Functioning
• A group's life is based on the team functioning as it involves the behavior of group
members with each other and their quality of relationship that ultimately affects on
their work performance.

Performance Norms
• Level of performance and methodology of performing work are related to the
performance norms. Once, the norms are established, the members perform
accordingly.

1.5.3 Outputs:
The effectiveness of the team is measured in terms of performance as well as the quality of work
life. Increasing productivity and reduction in cost comes under the performance and unambiguous
work comes under the quality of work.

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1.5.4 Alignment:
Above mentioned components for the group, work diagnosis is assessed in alignment and it is
determined how well fit they are with each other. The knowledge of group design and its liability
with the inputs is being assessed here along with the design components' suitability.

1.5.5 Analysis:
In analysis, a group-level diagnosis is applied on a managerial team and the results are then
analyzed. The outputs are examined to know what input component or factor has been lacking
resulting in an ineffective outcome. Hence, examining the group inputs and design components
exposes the basic causes of group issues.

1.6 INDIVIDUAL-LEVEL DIAGNOSIS:

A final level of organizational diagnosis is the individual level diagnosis and it consists or inclusive
of several jobs. An organization is comprised of several groups and each group is comprised of
many individuals performing their jobs. This section will be comprised of inputs, design
components, and relational fits necessary for diagnosing jobs.

1.6.1 Inputs:
In individual-level diagnosis's inputs, four major inputs are involved that affect job design.

It is concerned with the larger organizations that has a smallest unit of

Organizational Design individual job and it is a foremost part of larger context surrounding jobs.

Its the representation of values and norms shared by the members of

Culture organization. Moreover, it provides guidance about the member's
perception, thoughts, and actions. Besides this, it also can influence work
designs.
The work groups containing the individual jobs are presented in the
Group Design group design. As an input in the group design, task structure, goals
clarity, group composition, performance norms, and team functioning
play a vital role.

Personal The individuals performing their job activities has personal

Characteristics characteristics like age, experience, education, and expertise. Thses
characteristics do affect on the job design and performance.

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1.6.2 Design Components:

In individual-level diagnosis, five key dimensions are involved.

Skill Variety
• A range of activities and skills required for the specific job to be done comes
under skill variety.

Task Identity
• Its a measure of degree by which a job requires to be done. Highest level of task
identity has been possessed by people who are skilled and have expertise.

Task Significance
• Its a measure of degree of impacts that one job possess on other people's lives.
In Hospitals, custodial jobs has more task significance than other jobs.

Autonomy
• Its a measure of the degree by which a job offers liberty and freedom in the
work scheduling and methods determination.

Feedback
• Feedback provides information to employees about the tasks specifications and
its effectiveness.

1.6.3 Outputs:
Two types of outputs are considered in the individual job effectiveness. One is the measure of job
effectiveness and the other is the job experience by people that are inclusive of job satisfaction,
absenteeism, and personal development.

1.6.4 Alignment:
As per the individual diagnosis model, job design elements must be aligned with each other
resulting in effective job outcomes like quality of work, low absenteeism, reduced turnover, and
increased job satisfaction.

1.6.5 Analysis:
In the individual level diagnosis model, analysis of changes in job design is fruitful to diagnose
the individual level elements and alignment to decide what changes must be made.

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