Diagnosing Organization

The Entering Process

• Clarifying the Organizational Issue
• Presenting Problem
• Symptoms
• Determining the Relevant Client
• Working power and authority
• Multiple clients -- multiple contracts
• Selecting a Consultant
– Expertise and experience
 Elements of an Effective Proposal
Content Description
Goals of Proposed Descriptive, clear, and concise goals to be achieved
Effort
Recommended Description of 1) diagnosis, 2) data analysis process,
Action Plan 3) feedback process, and 4) action-planning process
Specification of What will various leaders, including the OD
Responsibilities practitioner, be held accountable for?
Strategy for Provide change strategies, including
Achieving the education/training, political influence, structural
Desired State interventions, and confrontation of resistance.
Fees, terms, and Outline fees and expenses associated with the
conditions project
4-3
Elements of an Effective Contract
• Mutual expectations are clear
• Outcomes and deliverables
• Publishing cases and results
• Involvement of stakeholders
• Time and Resources
• Access to client, managers, members
• Access to information
• Ground Rules
• Confidentiality

4-4
Elements of an Effective Contract
• Mutual expectations are clear
• Outcomes and deliverables
• Publishing cases and results
• Involvement of stakeholders
• Time and Resources
• Access to client, managers, members
• Access to information
• Ground Rules
• Confidentiality

4-5
 Interpersonal Issues of Entry
• Client Issues
• Exposed and Vulnerable
• Inadequate
• Fear of losing control
• OD Practitioner Issues
• Empathy
• Worthiness and Competency
• Dependency
• Overidentification

4-6
 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.

5-7
 Open Systems Model

Environment

Inputs Transformations Outputs

• Information • Social Component • Goods
• Energy • Technological • Services
• People Component • Ideas

Feedback
5-8
 Properties of Systems

• Inputs, Transformations, and Outputs

• Boundaries
• Feedback
• Equifinality
• Alignment

5-9
 Diagnosing
Organizational Systems
• The key to effective diagnosis is…
• Know what to look for at each organizational
level
• Recognize how the levels affect each other

5-10
 Organization-Level
Diagnostic Model
Inputs Design Components Outputs
Technology
General

Organization
Effectiveness
Environment Strategy Structure

Industry
Structure
HR Measurement
Systems Systems

5-11
 Key Alignment Questions

• Do the Design Components fit with the Inputs?

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

5-12
 Organization-Level Inputs
• General Environment
• External forces that can directly or indirectly
affect the attainment of organizational
objectives
• Social, technological, ecological, economic, and
political factors
• Industry Structure
• External forces (task environment) that can
directly affect the organization
• Customers, suppliers, substitute products, new
entrants, and rivalry among competitors 5-13
Organization Design Components

• Strategy
• the way an organization uses its resources (human, economic, or
technical) to gain and sustain a competitive advantage
• Structure
• how attention and resources are focused on task accomplishment
• Technology
• the way an organization converts inputs into products and
services

Cummings & Worley, 8e (c)2005 Thomson/South-Western 5-14

Organization Design Components

• Human Resource Systems

• the mechanisms for selecting, developing, appraising, and rewarding
organization members
• Measurement Systems
• methods of gathering, assessing, and disseminating information on the
activities of groups and individuals in organizations

5-15
Organization Design Components

• Organization Culture
• The basic assumptions, values, and norms shared by organization members
• Represents both an “outcome” of organization design and a “foundation” or
“constraint” to change

5-16
 Outputs
• Organization Performance
• e.g., profits, profitability, stock price
• Productivity
• e.g., cost/employee, cost/unit, error rates, quality
• Stakeholder Satisfaction
• e.g., market share, employee satisfaction, regulation compliance

5-17
 Alignment
• 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.

• Organization effectiveness is likely to be high when there

is good alignment.

5-18
 Group-Level Diagnostic Model

Inputs Design Components Outputs

Goal Clarity

Organization Task Group Group

Design Structure Functioning Effectiveness

Group Performance
Composition Norms

6-19
 Group-Level Design Components
• Goal Clarity
• extent to which group understands its objectives
• Task Structure
• the way the group’s work is designed
• Team Functioning
• the quality of group dynamics among members
• Group Composition
• the characteristics of group members
• Performance Norms
• the unwritten rules that govern behavior 6-20
 Group-Level Outputs

• Product or Service Quality

• Productivity
• e.g., cost/member, number of decisions
• Team Cohesiveness
• e.g., commitment to group and organization
• Work Satisfaction

6-21
 Individual-Level Diagnostic Model

Inputs Design Components Outputs

Organization Skill Variety
Design
Task Individual
Group Design Identity Autonomy Effectiveness

Personal Task Feedback

Traits Significance about Results

6-22
Individual-Level Design Components
• Skill Variety
• The range of activities and abilities required for task
completion
• Task Identity
• The ability to see a “whole” piece of work
• Task Significance
• The impact of work on others
• Autonomy
• The amount of freedom and discretion
• Feedback about Results
• Knowledge of task performance outcomes
6-23
 The Diagnostic Relationship

• Who is the OD Practitioner?

• Why is the practitioner here?
• Who does the practitioner work for?
• What does the practitioner want and why?
• How will my confidentiality be protected?
• Who will have access to the data?
• What’s in it for me?
• Can the practitioner be trusted?
7-24
 Data Collection - Feedback Cycle

Core Activities

Planning to Collecting Analyzing Feeding Following

Collect Data Data Data Back Data Up

7-25
 Sampling

• Population vs. Sample

• Importance of Sample Size
• Process of Sampling
• Types of Samples
• Random
• Convenience

7-26
 Questionnaires
• Major Advantages
• Responses can be quantified and summarized
• Large samples and large quantities of data
• Relatively inexpensive
• Major Potential Problems
• Little opportunity for empathy with subjects
• Predetermined questions -- no change to change
• Overinterpretation of data possible
• Response biases possible

7-27
 Interviews
• Major Advantages
• Adaptive -- allows customization
• Source of “rich” data
• Empathic
• Process builds rapport with subjects
• Major Potential Problems
• Relatively expensive
• Bias in interviewer responses
• Coding and interpretation can be difficult
• Self-report bias possible
7-28
 Observations

• Major Advantages
• Collects data on actual behavior, rather than reports of behavior
• Real time, not retrospective
• Adaptive
• Major Potential Problems
• Coding and interpretation difficulties
• Sampling inconsistencies
• Observer bias and questionable reliability
• Can be expensive

7-29
 Unobtrusive Measures
• Major Advantages
• Non-reactive, no response bias
• High face validity
• Easily quantified
• Major Potential Problems
• Access and retrieval difficulties
• Validity concerns
• Coding and interpretation difficulties

7-30
 Analysis Techniques

• Qualitative Tools
• Content Analysis
• Force-field Analysis
• Quantitative Tools
• Descriptive Statistics
• Measures of Association (e.g., correlation)
• Difference Tests

7-31
Force-Field Analysis of Work Group Performance
Forces for Change Forces for Status Quo

New technology Group performance norms

Desired Performance
Better raw materials Fear of change

Competition from other groups Member complacency

Supervisor pressures Well-learned skills

7-32
 Possible Effects of Feedback
Feedback occurs

No NO Is the energy created

Change by the feedback?
YES Energy to use
What is the direction of data to identify and
Energy
the feedback? solve problems
to deny or
fight data
Do structures and
Failure, NO processes turn energy
frustration, into action?
Anxiety,
no change
resistance, YES
no change
Change
8-33
 Determining the
Content of Feedback
• Relevant
• Understandable • Limited
• Descriptive • Significant
• Verifiable • Comparative
• Timely • Unfinalized
8-34
 Effective Feedback Meetings
• People are motivated to work with the data
• The meeting is appropriately structured
• The right people are in attendance
• knowledge
• power and influence
• interest
• The meeting is facilitated

8-35
 Survey Feedback Process

• Members involved in designing the survey

• The survey is administered to the organization
• The data is analyzed and summarized
• The data is presented to the stakeholders
• The stakeholders work with the data to solve problems or achieve vision

8-36
 Limitations of Survey Feedback

• Ambiguity of Purpose
• Distrust
• Unacceptable Topics
• Organizational Disturbances

8-37