Organisational Effectiveness Assessment Slides

ORGANISATIONAL EFFECTIVENESS
ASSESSMENT
BY REXFORD ATUNWEY
COURSE OVERVIEW.
By the end of this course, participants would
have absorbed the ff.:
1. What is an organisation? The Open
Systems Model
2. What is organisational effectiveness?.
3. What is organisational analysis?
4. Purposes and perspectives of organisational
analysis.
5. Data collection methods.
6. Use of appropriate organizational
diagnostic models to assess organisations.
7. Organisational Capacity Assessment Tools.
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ORGANISATIONS AS OPEN SYSTEMS
 Organizations are organic, living, goal-seeking

organisms;
 Seeking to attain a balance with their internal and
external factors around them;
 The Open Systems Model is a general model to guide
our understanding of the operations of organisations;
 It could also be used for entire organisational diagnosis
or for divisions or units within organisations.
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COMPONENTS OF THE OPEN SYSTEMS MODEL
1. Inputs: Organisations are synonymous to living organism
Living
Organisations
Organisms
food Raw materials
Financial
Water
resources
Human
Oxygen
Resources
Transformation Technology
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2. Internal Processes:
 Purpose, structure, culture and climate
 Procedures and regulations
 Work processes and systems, etc.
3. Outputs:
 Products, services and ideas
 These are the things that meet the purpose of the
organisation.
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4. Feedback: The feedback is the outcome of the outputs (goods and
services). These include
 Financial results like profits, productivity, share values, price of
product/service, cost of production, etc.
 Non-financial results like customers preferences, customer loyalty, etc.
 Strategic feedback: that is the degree to which an organisation is
monitoring and adapting to the external environment such as industry
trends, the needs of market segments, and the activities of competitors
and suppliers.,
5. External Environment: This is the PESTLE Analysis
 Political, Economic, Social-cultural, Technological, Legal, and ecological.
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KEY ASSUMPTIONS OF THE OPEN SYSTEMS MODEL
1. Can be applied to several levels of organisational analysis;
2. Organisations are made up of interdependent components;
3. Where there is a poor fit between interdependent components, there is lack of
organisational effectiveness;
4. All organisations and organisational units have a boundary that differentiates them
from the wider external environment;
5. Permeable boundaries (but not too permeable) are good for survival of
organisations;
6. Impermeable boundaries stifle organisational growth or lead to monopoly;
7. An organisation’s survival depends on its adaptability to the external environment;
8. An organisation’s effectiveness also depends on its ability to meet internal system
needs:-putting people in their right roles, operating with the right systems and
equipment or technology, having the right structure, etc.
9. Developments within and outside the organisation affect its effectiveness.TREY
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THE MODEL AS A DIAGNOSTIC GUIDE
1. Can be used for the overall organisational diagnosis;
2. Helps assess the broad context affecting operations within a particular
organisational function;
3. Practitioners can use system characteristics of organisation to understand
both immediate and more distant forces affecting the organisation;
4. Practitioners can then focus on those system components and sub-
components that are most directly related to the local system;
5. The model draws attention to interactions between system components and
can guide the assessment of fit among components.
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ORGANISATIONAL
EFFECTIVENESSASSESSMENT
Need for organisations to keep
adapting in the midst of
globalization, rapid socio-economic
changes, technological explosion.
Demands for customer service
quality, efficiency of operations and
growing competition.
Thus the need for assessing
organizational effectiveness,
change and renewal.
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• Organisational effectiveness is the degree to which an

organization accomplishes its goals, satisfies its stakeholders,
has the resources it needs to operate, or creates societal or
environmental impact.
• organizational effectiveness is the degree to which an
organization achieves the goals it sets out to achieve.
• The effectiveness of an organisation is different from the
efficiency of an organisation.
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• Organisational efficiency is the degree to which an organisation

fulfils its goals with the limited resources it has at its disposal.
Efficiency is about doing the right thing the right way. For
example, financial ratios could be used to determine the
efficiency of a company.
• The primary difference between organizational effectiveness
and organizational efficiency is that you can use effectiveness to
evaluate just about every process that makes your business run.
Efficiency, however, is always about the financial costs and the
results of doing something.
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APPROACHES TO MEASUREING ORGANISATIONAL EFFECTIVENESS
There are different approaches to assessing organisational effectiveness. Some of
these are:
Goal Model To what degree the organization achieves it goals.
• Goals include: Product or service quantity and quality, financial goals, shareholder value, societal
impact. E.g. MTN, Apple etc
Internal Processes
Achieving high quality internal processes
Model
• Looks at the smooth functioning of organizational operations achieved through information
management, documentation and continuous consolidation. E.g. Lean process approach. E.g. The
banking sector, Universities
Resource-based Accesses resources that are rare, valuable and hard to imitate; strong
company brand; or reputation.
Model
• Examples: Proprietary software like WhatApp, Instegram, Microsoft Windows. Others are Apple or
Coca Cola

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ORGANISATIONAL EFFECTIVENESS MODELS
Other Schools of Thought assess Organisational Effectiveness under the following
Strategic Satisfies those factors in the environment that threatens its existence.
Constituency Model
• Each constituency has a degree of power. Constituencies include owners, management, employees,
customers, suppliers, government, etc.
Stakeholder Includes strategic constituency members and others.
Approach
• The others are families of workers, activists, and communities who are indirectly affected by their
activities. E.g. Mining companies.
Competing Values Ability to promote competing values
Model
• E.g. Maximizing profits, taking care of employees, promoting internal structure and coordination, while
promoting innovative and novel initiatives. Based on Cameron and Quinn’s model
The Abundance Using all the human systems possible which includes positive and negative
Model elements
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Organisational Effectiveness Not a Matter of Either/Or
Accomplishing
Organisational
Goals
Obtaining
Flourishing
Critical
Organisation
Resources
ORGANISATIONAL
EFFECTIVENESS
Managing
High Quality
Simultaneous
Internal Processes
opposites
Satisfying
Stakeholders

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METHODS OF
ORGANISATIONAL ANALYSIS
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ORGANISATIONAL ANALYSIS CYCLE
The Organisational analysis process is as follows:
1. Identifying the need for change;
2. Contacting: client-consultant contact through:
i. Expression of Interest/Request for Proposal
ii. Unsolicited proposal by consultant
iii. Word of mouth or referral by business associates, friends, etc.
3. Contracting: Formally written contractual agreement
between client and consultant
4. Data gathering: by use of questionnaire, interviews, imagery,
observation, etc.
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ORGANISATIONAL ANALYSIS CYCLE
The Organisational analysis process is as follows:
5. Data analysis: Giving interpretation to data gathered;
6. Diagnosis: Linking results of data to identifiable problem(s);
7. Feedback I: Discussion of results/diagnosis of data with client;
8. Action Plan/Action taken: List of interventions/solutions to the
problem(s) and proper implementation of interventions;
9. Evaluation: Two stages:
i. Evaluating effectiveness of the intervention/solution
ii. Measuring the success of the intervention;
10. Feedback II: Outcome of the intervention on the business;
11. Termination: Exit of Consultant and consolidation of the intervention.
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Organisation Effectiveness is assessed through Organisational
Analysis.
Contacting
Terminating
Contracting
Feedback II
Data Gathering
Evaluation
Data Analysis
Action Taking
Diagnosis
Action Planning
Feedback I

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DATA GATHERING METHODS OF ORGANISATIONAL ANALYSIS
There are many ways of gathering data for organizational analysis. These include but
not limited to the ff:
1. Questionnaires
2. Interviews
3. Observation
4. Analysis of records, circulars, appraisal reports and other organisational literature
5. Analysis of hard data of organisations and various units
6. Task forces and task groups
7. Problem identification/problem solving workshops
8. Seminars, symposia and training programme
9. Recording and examining critical incidents, events.

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 The process of data gathering begins by establishing a relationship between the
consultant and those from whom data will be collected;
 The clients need to know “who the practitioner is”, “why data is being collected”,
“what data gathering will involve”, and “how data will be used”
 Practitioner needs to establish a psychological contract with the organisation
members. The following questions could elaborate on the contract:
 Who am I?
 Why am I here and what am I doing?
 Who do I work for?
 What do I want from you and why?
 How will I protect your confidentiality?
 Who will have access to the data?
 What’s in it for you?
 Can I be trusted?
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Next is to choose the best data collection technique.
The four major techniques for gathering diagnostic data are

questionnaires, interviews, observations, and unobtrusive measures.
No single method can fully measure the kinds of variables important to
OD because each has certain strengths and weaknesses.
Next is the analysis of the data gathered.
Last is the feedback of data to the client.

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1. QUESTIONNAIRE:
• Questionnaires can vary in scope;
• They also can be standardized or tailored to specific organizations.
• Standardized questions contain predetermined questions that have been tested overtime.
• Examples of standardized questionnaire are:
• Michigan Organizational Assessment Questionnaire;
• Weisbord's Organizational Diagnostic Questionnaire;
• Dyer's Team Development Survey; and
• Hackman and Oldham's Job Diagnostic Survey.
• Standardized questionnaire can undergo modifications, additions and omissions.
• Customized questionnaires, on the other hand, are tailored to the needs of a particular client.
• They are usually developed by consultants or with organisation members.
• They usually face problems of validity and reliability.
• There are open-ended and close-ended questionnaire
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ADVANTAGES AND DISADVANTAGES OF
QUESTIONNAIRE:
• ADVANTAGES
1.Most efficient way to collecting data
2.Can be administered to large number of people simultaneously
3.Allow for quantitative comparison and evaluation
4.Can vary in scope for different variables of organisations;
5.Does not entails lots of time to administer and gather data;
6.Are less expensive

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ADVANTAGES AND DISADVANTAGES OF
QUESTIONNAIRE:
• DISADVANTAGES
1.Responses are limited to the questions asked in the instrument;
2. Response bias leading to over elaboration or restriction of data;

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2. INTERVIEWS:
• Interviews:
1. A study of 245 OD practitioners found that interviewing is
the most widely used data- gathering technique in OD programmes
2. Interviews are more direct, personal, and flexible than surveys and are very wel
l suited for studies of interaction and behavior.
3. For example, they can be used to determine motives, values, and attitudes.
4. Second, interviewing is the only technique that provides two-way
communication. This permits the interviewer to learn more about the problems,
challenges, and limitations of the organization.

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2. INTERVIEWS:
5. Interviews are best administered in a systematic manner by a
trained interviewer.
6. Questions posed like in questionnaire could be close-ended or open-ended.
7. They could be directional or non-directional. E.g. of non-directional
questions is “tell me about your job”
8. Interviews may be highly structured or highly unstructured.
9. Interviews could be done in groups; e.g. focus groups or sensign meeting;

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2. ADVANTAGES OF INTERVIEWS
1. More direct, personal and flexible; thus can be used for varied situations;
2. They provide two-way communication;
3. Can be used to measure imbedded characteristics such as, values, beliefs, attitudes
and norms;
4. Can build self-rapport between consultant and client.
5. Enables interviewer to probe for further information to clarify issues.
DISADVANTAGES OF INTERVIEWS
6. Involves a lot of time to administer;
7. Needs specialized skills of the interviewer to be able to elicit information;
8. Difficulty comparing data across respondents;
9. Interviewer bias;
10. Resistance of interviewee to render some information.

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3. OBSERVATION
1. Observation could take various forms:
a. By walking along an aisle in the workspace;
b. By complete participation in the task or activity
c. By use of a screen, video recording etc.
2. Could be used to assess behaviors or processes;
Advantages of Observation
3. Free of response bias;
4. Observation gives real-time data;
5. Observation is adoptive-i.e. consultant can change what he wants to observe;
6. Good at analysing interpersonal relations of individuals and groups.

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ORGANISATIONAL DIAGNOSTIC
MODELS
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WHAT IS ORGANISATIONAL DIAGNOSIS/ANALYSIS
Organisational diagnosis is an exercise attempted

to:
 analyse the organisation, its structure,
subsystems and processes;
 identify the strengths and weaknesses of its
structural components and processes; and to
develop plans to improve and/or maximise the
dynamism and effectiveness of the organisation.
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WHAT IS ORGANISATIONAL DIAGNOSIS/ANALYSIS
Analysing the organisation in terms of its components and their

functioning is the first step in a comprehensive diagnosis.
 organisations are systems composed of different component
parts
 The effective functioning of each part is crucial for the overall
functioning of the organisation.
In addition the coordinated functioning of these subsystems
also contributes to organisational effectiveness.

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PURPOSES OF ORGANISATIONAL DIAGNOSIS
Organisational diagnosis could be organised for the following purposes:
1. Enhancing the general understanding of the functioning of organisations
(i.e. educational or research purposes.)
 Direct beneficiary-Researcher not organisation
 For societal consumption
2. Planning for growth and diversification
 Reveals strengths and weakness
 Structural dimensions: e.g. people, systems, styles, technology, etc.

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3. Improving Organisational Effectiveness or Planning General
Improvements. E.g. by use of Organisation Capacity Assessment Tools.
 introducing new management systems and processes,
 reduction of wasteful expenditure,
 change of personnel policies to enhance employee motivation,
 improvements in general health of the organisation etc.

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4. Organisational Problem Solving to identify the source of the problem and
take action. Some of these could be:
 A sick unit, a bottleneck,
 A communication block,
 a poor performing department,
 frequently occurring conflict between two departments,
 repeated failures of a management system or an organisational process,
 a frequent violation of an organisational norm,
 fall in discipline,
 reduction in output absenteeism, increase in conflicts etc.
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PERSPECTIVES OF ORGANISATIONAL ANALYSIS
Organisational diagnosis could be organised in different

perspectives: These relate to the purpose of the diagnosis and
professional background of the persons conducting it. Some
perspectives are:
1. Economics Perspective
2. Political Science Perspective
3. Sociology and Social Psychology Perspective
4. Management Perspective
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PERSPECTIVES OF ORGANISATIONAL ANALYSIS
5. The OD or Applied Behavioral Science Perspective
 The OD Perspective focuses on the human process dimensions of
organisations’ functioning
 These include the roles of the individual, the team work and inter-team
collaborations, organisational culture and climate
 Focuses on examining values, attitudes, norms, systems and processes in an
organisation.
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USE OF
ORGANISATIONAL
MODELS
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ORGANISATIONAL DIAGNOSTIC MODELS
• What are organisational diagnostic models:

• They are tools for assessing organisations’ current level of functioning in
order to:
 understand problems
 identify underlying causes
 design appropriate interventions for change and improvement
(Harrison and Shirom, 1999).
 They are also used to determine organisation’s readiness for change
They are used to determine where the organisation is now, where it
wants to reach.

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THE METAPHOR OF ORGANISATIONAL DIANOSIS
• Organisational Diagnosis is parallel to the Medical Field
MEDICAL FIELD ORGANISATIONAL DIAGNOSIS
 Patient-doctor contact  Consultant-Client contact
Observes and tests patient Gathers data using tools like
questionnaire, interviews,
observations, etc.
Analyses data from lab Analyses data gathered
 Diagnoses the problem with
 Diagnoses the problem and stakeholders and prescribes
prescribes treatment interventions.
Gives feedback to patient in the  Gives feedback on organisational
form of a review diagnosis to client.
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ORGANISATIONAL DIAGNOSIS MODELS
There are various types of organisational models depending on the purpose
and perspective of the diagnosis/analysis
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KURT LEWIN’S FORCE FIELD MODEL (1951)
Lewin identified two forces as

influencing the need for change;
 Driving Forces: such as
environmental forces push for
change.
 Restraining Forces: such as
limited resources, stakeholder
buy-in push against change.

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 To push for change, driving forces • These two forces are ‘pulling’
and restraining forces are first in opposite directions;
identified and defined (status • Need to increase driving forces
quo); and reduce restraining forces
• Driving forces are those forces (stage of disequilibrium);
that initiate, encourage and Then interventions can be applied
support the change; to achieve the desired change
• Restraining forces are those (Second stage of equilibrium).
that work against the change;
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DRIVING FORCES AND RESTRAINING FORCES
FACTOR DRIVING FORCES RESTRAINING FORCES
Management A willing and sophisticated management An unwilling and autocratic management
Employees When employees understand change When there is low education to employees on
change or fear of change affecting employee
status
Technological Technological changes in the industry; When changing to new technology is expensive
Changes e.g. news ways of doing things.
Legislature Demands of legislative instruments; e.g. Laws may make it difficult of an organisation to
law on minimum capital requirements of implement a change
banks
Competition Competitors may lead the way in forcing Lack of competition may slow down the need for
an organisaton to also adopt some change.
changes

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LIKERT’S SYSTEM ANALYSIS (1967)
 Likert described 4 different types of management systems with organisations

which takes into effect the organisational dimensions listed. These are:
1. Participative
2. Consultative
3. Benevolent-Authoritative
4. Exploitative-Authoritative
 Likert developed a 43 item survey instrument with questions relating to the 7
organisational dimensions
 Purpose: Assess employee perceptions at (upper management, supervisors and
lower staff)

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 Likert identified the following elements that need to be identified in order to

assess the organisation. These are:
 Motivation:
 Communication:
 Interaction:
 Decision Making:
 Goal Setting;
 Control:
 Performance:
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 Likert he describes four different types of management systems within
organizations, which take into account the organizational dimensions he identifies.
 These are:
1. System 4: Participative Group
2. System 3: Consultative
3. System 2: Benevolent-Authoritative
4. System 1: Exploitative-Authoritative
 Likert developed a 43-item survey instrument with questions related to the seven
organizational dimensions. The purpose of the instrument was to measure
employees’ perceptions (e.g., upper management, supervisors, and staff) of the
organizational dimensions within the organization.

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System 1: Exploitative-Authoritative System 2: Benevolent-Authoritative
1. Decision-making and responsibility at upper levels • Decision-making extended to middle-managerial
of the organisational hierarchy levels
2. Little to no trust in employees • More trust towards employees, though somewhat
3. Decisions and roles are imposed on employees condescendingly
4. Employees cannot openly discuss decisions and • Responsibility still lies near the top of the hierarchy
roles with managers • Limited employee consultation on decisions
5. Employees may engage in counter-productive • Employees still cannot discuss their roles with
behaviour managers
6. Motivation by punishments and threats - play on • Team members may compete for rewards
fear
• Rewards for performance, but also still a threat of
7. Teamwork and communication are minimal punishment
• Teamwork and communication are minimal

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System 3: Consultative Group System 4: Participative Group
e1. Decision-making extended to lower-levels when it
• Decision-making, responsibility and values are free-
significantly affects their role spread across all tiers
2. Substantial trust in employees • Complete confidence and trust in all employees
3. Responsibility often shared with some team • Decisions are formed through group participation
members and consultation
4. Decisions can be formed through employee • Communication is free and managers actively try to
consultation processes understand issues
5. Employees discuss job-related issues horizontally, • Employees are co-operative and openly accountable
and sometimes vertically
• Motivation is provided through monetary rewards
6. Teams are more co-operative - communication and and involvement in goal-setting
teamwork are good
• Teamwork, satisfaction and therefore productivity,
7. Motivation primarily through reward, but are high
sometimes punishment

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McKinsey 7S Model (Waterman, Peters, & Phillips 1980)
The 7 s are:
1. structure
2. strategy
3. Systems
4. Skills
5. Style
6. staff, and
7. superordinate goals (i.e., share values).

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The 7 s are:
1. Strategy–is the organization’s alignment of resources and
capabilities to “win” in its market.
2. Structure–describes how the organization is organized. This
includes roles, responsibilities and accountability relationships.
3. Systems– are the business and technical infrastructure,
processes and procedures that employees use on a day to day
basis to accomplish their aims and goals.
4. Shared Values– are the set of traits, behaviors, and
characteristics that the organization believes in. This would
include the organization’s mission and vision.
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The 7 s are:
5. Style–This is the behavioral elements the organizational
leadership uses and culture of interaction.
6. Staff–This is the employee base, staffing plans and talent
management.
7. Skills–This is the ability to do the organization’s work. It reflects
in the performance of the organization

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The 7 s are:

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The 7 s are:
Assumptions of the Model
• A change in any of the elements affects all other elements;
• all operations related to the creation and management of
elements should be carried out by competent and skilled
managers who possess the necessary knowledge and skills to
understand the scope and properties of the elements;
• Deals with hard and soft skills of organisations;
• Recognises the value of technological changes in organisational
analysis.
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Weisbord’s Six-Box Model (1976)
 Weisbord enables one to analyse the various elements which constitute
an organization, their interrelationships and the relationships between
the organization and its environment along its boundaries.
 Weisbord (1976) proposes six broad categories in his model of
organizational life.
 He also tacitly looks at the external environment in the model
 Outlines the importance of formal and informal relationships
 Model is developed along the open systems model of:
 Inputs, process, outputs, and feedback, the external
environment/boundaries

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 The elements of systems model as seen in Weisbord’s model are:
1. Boundaries of the organisation
 Open/Permeable boundaries:
 Impermeable Boundaries
2. Inputs: machinery, human resources, finance (internal and external),
Technology, ideas, networks of “allied” organisations, partners etc.
3. Outputs: products and services, skilled labour turnover, proprietary
rights.
4. Feedback: quality and quantity of product/services), feedback from
customers, sales volume, etc.

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 The six elements of Weisbord’s model are:
1. Purpose: i. e. vision, values, and objectives of the organisation
 Vision spells out:
i. How the outside world views the company
ii. What guides the strategies of the company
iii. what energizes and guides employees’ performance
 Values guide the behaviour patterns of members and the type of
culture that exists.
 Objectives are the action plans that lead us to our vision.
Questions the practitioner may ask:
-Do organizational members agree with and support the organization’s
mission and goals?
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 The six elements Weisbord’s model are:
2. Structure:
 Levels of authority and responsibilities in the organisation;
 Units or subsystems in the organisation: departments, committees, etc.
 Procedures of decision making
 Rules and regulations in place (how do they affect work
Questions:
-Is there a fit between the purpose and the internal structure of the
organization?

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2. Relationship:
 What types of relations exist between individuals, between departments,
and between individuals and the nature of their jobs?
 Is there interdependence?
 Are there informal subgroups?
 How are interpersonal and intergroup conflicts managed? Openly or on the
backstage?
 What is the atmosphere in the organisation? Is there any investment done to
take care of it?
 How does the formal side of life in the organisation relate to the informal
side?
 What is the organisation doing to develop relationship? (Festivities, group
outings, social events?)
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3. Rewards:
 What does the organization formally reward?
 what do organizational members feel they are rewarded and punished
for?
 What is the organisation doing to develop the career development of
employees;
 Is recognition given to employees? Etc.

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4. Leadership/Management:
 Do leaders define purposes?
 Do they embody purposes in their programs?
 What is the normative style of leadership, autocratic or participatory?
 Who makes decisions in the organisations?
 How are decisions made?
 Who has the authority for what? Etc.

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5. Helpful mechanisms/Support systems:
 Do these mechanisms help or hinder the accomplishment of organizational
objectives?
 How is technology used to enhance achievement of organisational
objectives?
 Are there financial management systems in place?
 What levels of authorization of payment and accounting procedures exist?
 Are there policies to govern the allocation and utilization of the facilities and
resources (vehicles, computers, office facilities etc)?

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Nadler and Tushman’s Congruence Model for Organization Analysis (1980)
Assumptions of Nadler and Tushman’s Model:
1. Organizations are open social systems within a larger
environment.
2. Organizations are dynamic entities (i.e., change is possible and
occurs).
3. Organizational behavior occurs at the individual, the group, and
the systems level.
4. Interactions occur between the individual, group, and systems
levels of organizational behavior.

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Variables of the Congruence Model:
INPUTS
Environment Resources Internal Resources History Strategy
All factors, including Various assets to which The patterns of past The stream of decisions
institutions, groups, the organization has behaviour, activity, and about how
individuals, events, and access, including effectiveness that organizational
so on, that are outside human resources, may affect current resources will be
the organization being capital, information, organizational configured to meet
analyzed, but that have and so on, as well as functioning demands, constraints,
a potential impact on less tangible resources and opportunities
them (recognition in the within the context of
market, and so forth) the organization’s
history

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System Component (Processes)
Tasks Individual/People Formal Informal
organization/Structure Organisation/Culture
The basic and inherent The characteristics of The various The emerging
work to be done by the individuals in the structures, processes, Leadership style, Beliefs
organization and its organization methods, and so on and Values, Unwritten
parts that are formally rules, information flow
created to get (informally), Political
individuals to perform networks
tasks

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Outputs
Individual Behaviour Group and inter-group Systems Functioning
Behaviour
Absenteeism, lateness, Intergroup conflict, The various structures,
turnover, levels of satisfaction, collaboration, and quality of processes, methods, and so on
drug usage, and off-the-job intergroup communication that are formally
activities which impact created to get individuals to
performance perform tasks

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Nadler and Tushman apply the concept of congruence to their
model. They describe congruence, or fit as
“the degree to which the needs, demands, goals, objectives, and/or
structures of one component are consistent with the needs,
demands, goals, objectives, and/or structures of another
component”
(i.e., how well pairs of components fit together).
For example, a task demands a level of skill and knowledge and
likewise, the individuals available to perform the task possess
varying levels of skill and knowledge.

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Nadler and Tushman (1980) explain that the greater the skill and
knowledge match between the task and the individual, the more
effective the performance will be.

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Galbraith’s STAR Model (1982)
One of the most widely-used organizational design frameworks.
A framework for making design choices and decisions on
organizational strategy and execution.
The model includes five design elements:
 strategy, structure, processes, rewards, and people (Galbraith,
These design elements affect:
 the overall direction of the organization
 the nature of leadership
 the flow of information, and
 the competencies and motivation of workers.

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According to Galbraith, strategy is a multi-dimensional concept
which can be defined in a number of different ways.
In general, strategy is the means by which an organization intends
on achieving its objectives and goals with respect to improving or
innovating for competitive advantage.
Leaders, in turn, develop and reinforce the organizational
capabilities needed for strategy attainment (Galbraith, 1995; Kates
& Galbraith, 2007).

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Strategy What is the formula for success?
How do we differentiate ourselves from
our competitors?
Structure How are we organized?
What are the key leadership roles?
How is the work managed?
Who has power and authority?
Processes How are decisions made?
How does work flow between roles?
What are the mechanisms for authority?
Rewards How is behavior shaped by the goals?

How do we assess progress?
People What skills are needed?

How do we best develop our talent?

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 The Star Model does not specify a specific performance outcome (e.g.,
organizational culture, performance, or effectiveness).
 It is a framework for decision making
 Culture, for example, is vitally important for any organization, but cannot be directly
controlled by management.
 Rather, culture is a manifestation or outcome of the specific design choices made in
an organization.
 Likewise, individual, group, and organizational effectiveness and performance are
considered a byproduct of the variables in the model.
 The Star Model depicts the organizational design variables that can be directly
controlled by the leadership in an organization.

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Large image
METHODS OF
ORGANISATIONAL ANALYSIS
TREY 75
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Customize this Template
ORGANISATIONAL
CAPACITY ASSESSMENT
TOOLS (OCAT) FOR NON-
PROFIT ORGANISATIONS
TREY 76
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WHY CONDUCT AN ORGANISATIONAL CAPACITY ASSESSMENT
1. To achieve organizational change, learning and development

2. to measure their performance, prioritize organizational
challenges, and implement improvement strategies.
3. To give a general overview of the organisation’s capacity
4. Identify strengths and weakness in an organisation and
stimulate discussions among individuals and teams/units

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WHO SHOULD USE AN OCAT
1. By Civil Society Organisations-i.e. not-for-profit, and

community-based associations.
2. These organisations are also referred to as non-profit
organisations (NPOs), non-governmental organisations
(NPOs), Charities and voluntary associations or organisations,
faith-based organisations, etc.

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THE ASSESSMENT PROCESS
5 Needs &
3 Evaluation
Develop based
Action Capacity 7 Follow-up
1 Preparation Plan Building Assessment
2. 4 6 Monitor
Conduct Develop Action Plan
OCA OCA Progress
Report

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Stage 1: Preparation
1. Inform organisation in time (at least 6 weeks ahead);
2. Write-up or letter sent to organisation outlining the following:
i. Aims and objectives of the OCAT
ii. Draft Programme of Activities
iii. List of documents to be prepared in advance
3. Components of organisation to assess should be agreed with Client-Key departments to
participate in the OCA should include:
i. HR, Finance, Monitoring & Evaluation, Programme implementation and other
relevant depts.
ii. At least a Board member, CEO, and staff at various levels (senior management,
middle management and general staff)
4.Team to participate should be agreed with the organisation in advance
5.Participants should be aware they are to be present from beginning to end

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PRINCIPLES OF OCA
1. Participation: Organisational member participation in all processes of OCA such as:
i. Tool development;
ii. Administering of tool;
iii. Scoring and analysing data;
iv. Diagnosing and suggesting interventions;
v. Taking action plans;
vi. Developing a report; and
vii. Monitoring change.
2. Customization: The OCA tool should be customized to meet organisational purpose,
size and processes.
3. Ownership: The high degree of participation of organizations’ staff and
customization of the tool contributes to an increased sense of ownership and
empowerment within organizations using this methodology

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PRINCIPLES OF OCA
4. Communication: OCA is an excellent means of building bridges of
communication and understanding both within and between
organizations.
5. Continuous Learning: The OCA methodology reflects the cyclical nature
of organizational development and the need to continuously revisit
assessment results and action plans to make them a living part of the
organization's change strategy.
6. The good OCA uses a mixture of data collection methodology including
focus group, secondary data, workshops and the tool itself.

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COMPONENTS OF AN OCA
The following elements are to be considered in developing an OCA Tool
analysis
7. People
1. Mission & Vision:
8. Technology
2. Organisation structure:
9. Other Resources: financial resources,
3. Processes
business practices, administrative
4. Culture and climate Practices, management expertise,
5. Work ethos of the era information resources, R & D etc.
6. Work Practices 10. Systems
11. Environment

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THE COMPETING VALUES FRAMEWORK
Developed in 1983 by R.E. Quinn and J. Rohrbaugh of the University of
Michigan.
Explains the major indicators of effective organisational performance
such as:
organizational effectiveness,
leadership roles and competencies,
organizational culture,
organizational structure,
stages of life cycle development,
financial strategy, and
information processing.

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The framework predicts if an organization is performing effectively.
Two Major Dimensions of Framework
One dimension differentiates and emphasises on flexibility, discretion,
and dynamism from an emphasis on stability, order, and control.
This continuum ranges from versatility and pliability on one end to
steadiness and durability on the other end.
The second dimension differentiates an internal orientation with a
focus on integration, collaboration, and unity from an external
orientation with a focus on differentiation, competition, and rivalry.

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FLEXIBLE
(changing, adaptable,
&
Transformational)
EXTERNAL
INTERNAL
(differentiation,
(integration,
competition,
collaboration and
and rivalry)
unity)
FOCUSED
stable,
predictable, & consistent

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Together these dimensions form four quadrants.
 Each representing a distinct set of organizational and individual factors
such as:
Organisational effectiveness
Leadership and management competence
Organisational culture
Organisational structure, etc.
These four core values represent opposite or competing assumptions.
Each dimension highlights a core value that is opposite from the value
on the other end of the continuum, e.g. flexibility vs stability, and
internal vs external
The quadrants also highlights opposing values diagonally.
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Four quadrants of the Competing Values Framework.
FLEXIBILITY
PM M
BR
T
EN
LO TER
EA
K
DE ONG
TH
R OU
VE
L
COLLABORATE CREATE
GH
(CLAN) (ADHOCRACY)
Do things together Do things first
INTERNAL EXTERNAL
CONTROL COMPETE
(HIERARCHY) (MARKET)
PE OR
AL
Do things right Do things fast

T
R
SH
N
FO T TE
E
EM
R MA RM
C R
N
IN
CE
STABILITY
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THE COMPETING VALUES FRAMEWORK AND LEADERSHIP DEVELOPMENT
The CVF analyses the key values, leadership types, organisational culture, approaches to
change, and theories of organisational effectiveness.
Clan (Collaboration): Leadership values for this quadrant require:
 teamwork, collaboration, talent management, empowerment, or inter-personal
relationships, mutual trust.
 Market (Competition): Leadership qualities include:
 competitiveness, fast response, decisiveness, driving through barriers, or goal
achievement.
 Adhocracy (Creation): This requires leadership qualities such as:
 innovation, creativity, articulating future vision, transformation, or entrepreneurship.
 Hierarchy (Control): This requires:
 assessing and measuring, controlling processes, structuring, improving efficiency, or enhancing
quality.
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THANK YOU

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ORGANISATIONAL EFFECTIVENESS

 Organizations are organic, living, goal-seeking

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food Raw materials

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• Organisational effectiveness is the degree to which an

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• Organisational efficiency is the degree to which an organisation

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The four major techniques for gathering diagnostic data are

Next is the analysis of the data gathered.

Last is the feedback of data to the client.

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Organisational diagnosis is an exercise attempted

Analysing the organisation in terms of its components and their

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Organisational diagnosis could be organised in different

• What are organisational diagnostic models:

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Lewin identified two forces as

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 Likert described 4 different types of management systems with organisations

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 Likert identified the following elements that need to be identified in order to

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Rewards How is behavior shaped by the goals?

People What skills are needed?

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