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Diagnosing Organizational

Effectiveness
A Roadmap toward Corporate Sustainability

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Contents

1. Comprehensive Model for Diagnosing Organizational Systems

2. Organization-Level Diagnosis : Strategy, Structure, Culture,


People and Technology

3. Group-Level Diagnosis : Group Dynamics and Group


Performance

4. Individual-Level Diagnosis : Employee Satisfaction and


Performance

5. Designing Effective Organization Intervention

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Comprehensive Model for
Diagnosing Organizational Systems

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What is Diagnosis?

• Diagnosis is the process of understanding how the


organization is currently functioning, and it provides
information necessary to design change interventions.

• It is also a collaborative process between organization


members and the OD (organization development)
consultant to collect pertinent information, analyze it, and
draw conclusions for action planning and intervention.

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High Politics Organization:
Common Approach to Business Problems
YES NO
DOES THE THING WORK?

DON’T MESS
DID YOU MESS WITH IT?
WITH IT
NO
YES

NO DOES ANYONE YOU DUMB


KNOW? *#@>!!

HIDE IT YES YES


WILL YOU
CATCH HELL?
YOU POOR
$#@! ~*%$

TRASH IT

CAN YOU BLAME SOMEONE ELSE?


NO
YES

NO PROBLEM

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Comprehensive Model for Diagnosing Organization
A. ORGANIZATIONAL LEVEL
Inputs Design Components Outputs
Strategy
- General
Structure Culture Organization
Environment
Effectiveness
- Industry
Structure Human Technology
Resources

B. GROUP LEVEL
Inputs Design Components Outputs
Goal Clarity
Team
Task Group
- Organization Structure Effectiveness
Functioning
Design e.g., quality of
Group Group work life,
Composition Norms performance

C. INDIVIDUAL LEVEL
Inputs Design Components Outputs
Skill Variety Individual
- Organization Effectiveness
Design Task Identity Autonomy
e.g., job
- Group Design
- Personal satisfaction,
Characteristics Task Feedback personal
Significance about Results development
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Organizational-Level
Diagnosis

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Organizational-Level Diagnosis

Inputs Design Components Outputs

Strategy

General
Environment Structure Culture Organization
Effectiveness
Industry
Structure

Human Technology
Resources
Systems

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General Environment

General
• The general environment represent the
Environment external elements and forces that can
affect the attainment of organization
objectives.
• It can be described in terms of amount of
uncertainty present in social,
technological, economic, ecological, and
political forces.

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Five Forces of Industry Structure

Buyer
Power

Supplier Threats of
Power Substitutes
Industry
Structure
Rivalry
Threats among
of Entry Competitors

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Strategy

Strategy
• A strategy represent the way an
organization uses its resources to gain
and sustain a competitive advantage.
• It can be described by the organization’s
mission, goals and objectives, strategic
intent, and functional policies.

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Strategy Formulation
Analysis of
General
Mission – Environment
Why We and Industry
Exist Structure

Vision – Strategy Map :


Strategy :
What We Translate the
Our Game
Want to Be Strategy into
Plan
Action
Values –
What’s Analysis of
Important Organization’s
to Us Core
Competence
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Strategy Formulation

Strategic
Outcomes
Satisfied
Shareholders

Strategy : Strategy Delighted


Our Game Map : Customers
Plan Translate Excellent
the Strategy Processes
Motivated
Workforce
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Structure

Structure
• The structural system describes how
attention and resources are focused on
task accomplishment.
• It represents the basic organizing mode
chosen to (1) divide the overall work of
an organization into subunits that can
assign task to individuals and groups
and (2) coordinate these subunits for
completion of the overall work.

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Culture

Culture
• Organization culture represents the
basic assumptions, values, and norms
shared by organization members.
• It orients employees to company goals
and suggests the kinds of behaviors
necessary for success.

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Elements of Corporate Culture Formation

Organization Top Industry


System and Management Characteristics
Policy View

Profile of Organization
Employees Structure

Corporate Culture

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Human Resources Systems

Human • Human resources systems include


Resources mechanism for selecting, developing,
Systems appraising and rewarding organization
members.
• HR systems influence the mix of skills,
personalities and behaviors of
organization members.

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Human Resources Systems

Recruitment &
Selection

Training & Performance


Business Development Management Business
Strategy Result

HR
Systems

Reward Career
Management Management

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Technology

• Technology is concerned with the way


Technology
an organization converts inputs into
products and services.
• It represents the core of the
transformation function and includes
production methods, work flow and
equipment.

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Organizational-Level Diagnosis

• What is the company’s general environment?


• What is the company’s industry structure?

• What is the company’s strategy?


• What is the company’s culture?
• What are the company’s structure, human
resources systems, and technology?

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Organizational-Level Diagnosis

Inputs Design Components

Strategy
Does the
General
Environment organization Structure Culture
strategic
Industry orientation fit
Structure
with the
inputs? Technology
Human
Resources
Systems

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Organizational-Level Diagnosis

Design Components

Strategy

Do the design
Structure Culture
components
fit with each
other?
Human Technology
Resources
Systems

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Group-Level Diagnosis

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Group-Level Diagnosis

Inputs Design Components Outputs

Goal
Clarity

Organization Task Group Team


Structure Functioning
Design Effectiveness

Group Group
Composition Norms

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Organization Design

Organization
• Organization design is the major input to
Design group design.
• It consists of the design components
characterizing the larger organization
within which the group is embedded :
technology, structure, human resources
systems and organization culture.

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Group Components

Goal Clarity involves how


well the group understand its
objectives

Task Structure is Group Functioning is the


concerned with how the underlying basis of group life
group’s work is designed

Group Composition Group Norms are member


concerns the membership of beliefs about how the group
groups should perform task

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Goal Clarity

• Goal Clarity involves how well the group


Goal
understands its objectives.
Clarity
• In general, goals should be moderately
challenging; there should be a method of
measuring, monitoring and feeding back
information about goal achievement.

• The goals should be clearly understood


by all members.

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Task Structure

• Task Structure is concerned with how


Task
the group’s work is designed.
Structure
• Task structure can vary along two key
dimensions : coordination of members’
effort and regulation of their task
behavior.

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Group Functioning

Group • Group Functioning is the underlying


Functioning basis of group life.

• How members relate to each other is


important in work groups because the
quality of relationship can affect task
performance.

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Group Composition

Group • Group composition concerns the


Composition membership of groups.

• Members can differ on a number of


dimensions having relevance to group
behavior.

• Demographic variables such as age


education, and job experience, can
affect how people behave and relate to
each other in groups.

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Group Norms

Group • Group Norms are member beliefs about


Norms how the group should perform task

• Norms derive from interaction among


members and serve as guides to group
behavior.

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Group-Level Diagnosis

• How clear are the group’s goals?

• What is the group’s task structure?

• What is the composition of the group?

• What are the group’s performance norm?

• What is the nature of team functioning in the


group?

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Individual-Level
Diagnosis

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Individual-Level Diagnosis

Inputs Design Components Outputs

Organization Skill
Variety
Design

Group Design Task Task Individual


Identity Significance
Effectiveness
Personal
Characteristics
(skill, knowledge Autonomy Feedback
attitude)

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Individual-Level Diagnosis

Organization
• Organization design is concerned with
Design the larger organization within which the
individual job is the smallest unit.

Group
• Group design concerns the larger group
Design or department containing the individual
job.
• Like organization design, group design is
an essential part of the job context.
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Individual-Level Diagnosis

Personal
• Personal characteristics of individuals
Characteristics occupying jobs include their age,
education, experience, and skills and
abilities.
• Personal characteristics can affect job
performance as well as how people react
to job designs.

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Individual Jobs Dimensions

Skill Variety

Task Identity Autonomy

Five Key
Dimensions

Task Significance Feedback About Results

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Individual Jobs Dimensions
Skill Variety
The degree to which the job
requires a variety of different
activities

Task Identity Autonomy


The degree to which the job The degree to which a job
requires completion of a provides freedom and discretion
whole and identifiable piece in scheduling the work and
of work determining work methods.

Task Significance Feedback About Results


The degree to which a job has a The degree to which a job provides
significant impact on other employee with direct and clear
people’s lives information about the effectiveness of
task performance
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Job Characteristics Model - Hackman/Oldham

Core Job Psychological Personal and


Dimension States Work Outcomes

Skill Variety Experienced


Task Identity meaningfulness of
Task Significance the wok • High internal
work motivation
Experienced • High-quality work
Autonomy responsibility for performance
outcomes of the • High satisfaction
work with the work
• Low turnover
Knowledge of the
Feedback actual results of
the work activities

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Individual-Level Diagnosis

• What is the design of the larger organization within


which the individual jobs are embedded?

• What is the design of the group containing the


individual job?

• What are the personal characteristics of


jobholders?

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Individual-Level Diagnosis

• How much skill variety is included in the jobs?

• How much task identity do the jobs contain?

• How much task significance is involved in the


jobs?

• How much autonomy is included in the jobs?

• How much feedback about results do the jobs


contain?

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Designing Effective
Intervention

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Intervention

• A set of sequenced planned actions


or events intended to help an
organization increase its
effectiveness.
Intervention
• Interventions purposely disrupt
status quo; they are deliberate
attempts to change an organization
or subunit toward a different and
more effective state.

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Effective Intervention

Two Major 1. The extent to which it fits the needs


of the organization
Criteria to
Define an 2. The extent to which it transfer
Effective change-management competence to
Intervention organization members

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Intervention Success Factors

Readiness Capability of
Key Factors for Change the Change
that can affect Agent
intervention
success Capability Cultural
to Change Context

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Types of Intervention

Human Process
Intervention

Structural
Intervention
Types of
Intervention Human Resource
Management Intervention

Strategic
Intervention
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Examples of
Human Process Intervention

Process This intervention focuses on


interpersonal relations and social
Consultation
dynamics occurring in work groups.

Team Building This intervention helps work groups


become more effective in
accomplishing task

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Examples of
Structural Intervention

Structural Design This change process concerns the


organization’s division of labor – how to
specialize task performances.

Downsizing This intervention reduces costs and


bureaucracy by decreasing size of the
organization

Reengineering This intervention radically redesign the


organization’s core work process to
create more responsive performance.
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Examples of
Human Resources
Management Intervention

Performance This intervention is a systematic


process to link between corporate goal
Management
settings and reward systems.

Career Planning & This intervention helps people choose


Development career paths and attain career
objectives.

Reward System This intervention involves the design of


organizational rewards to improve
employee satisfaction and performance.
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Examples of
Strategic Intervention

Merger and This intervention is a systematic


process to integrate two or more
Acquisition
organizations.

Cultural Change This intervention helps organizations


develop cultures appropriate to their
strategies and environment.

Organizational This intervention seeks to enhance an


Learning organization’s capability to acquire and
deploy new knowledge.
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Institutionalizing Interventions

Effective
Intervention
Institutionalization
Process

Enhance
Organization
Performance

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Factors Affecting Institutionalization Process

Organization
Characteristics:
• Congruence
• Stability
• Unionization Institutionalization
Process
Intervention
Characteristics:
• Goal Specifity
• Programmability
• Level of Change Target
• Internal Support
• Sponsorship
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Organization
Characteristics:

This is the degree to which an intervention is


Congruence perceived as being in harmony with the
organization’s strategy, and structure; its
current environment; and other changes
taking place.

Stability of This involves the degree to which the


Environment and organization’s environment and technology
Technology are changing.

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Organization
Characteristics:

Diffusion of interventions may be more


Unionization difficult in unionized settings, especially if the
changes affect unions contract issues, such
as salary and fringe benefit, job design, and
employee flexibility.

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Intervention
Characteristics:

This involves the extent to which intervention


Goal Specifity goals are specific rather than broad.

This involves the degree to which the


Programmability
changes can be programmed or the extent to
which the different intervention characteristics
can be specified early in advance to enable
socialization, commitment, and reward
allocation.

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Intervention
Characteristics:

This concerns the extent to which the change


Level of
target is the total organization, rather than a
Change Target
department or small work group.

This refers to the degree to which there is an


Internal
internal support system to guide the change
Support
process.

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Intervention
Characteristics:

This concerns the presence of a powerful


Sponsorship
sponsor who can initiate, allocate, and
legitimize resources for the intervention.

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References/Recommended Further Readings

Thomas Cummings and Christopher Worley, Organization Development


and Change, South Western College Publishing.
You can obtain this excellent book at this link:
http://www.amazon.com/Organization-Development-InfoTrac-College-Printed/dp/0324421389/ref=sr_1_1?ie=UTF8

Stephen Robbins, Organizational Behavior, Prentice Hall


You can obtain this excellent book at this link:
http://www.amazon.com/Organizational-Behavior-12th-Book-CD-ROM/dp/0131890956/ref=pd_bbs_sr_1?ie=UTF8&

Marvin Ross Weisbor, Organizational Diagnosis : A Workbook of Theory


and Practice, Perseus Books Group
You can obtain this excellent book at this link:
http://www.amazon.com/Organizational-Diagnosis-Workbook-Theory-Practice/dp/0201083574/ref=sr_1_1?ie=UTF8

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