Diagnosing Organizations

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.

The Need for Diagnostic Models

O Entry and contracting processes can result in a need to understand either a whole system or some part, process, or feature of the organization. To diagnose an organization, OD practitioners and organization members need to have an idea about WHAT information to collect and analyze.

O Conceptual frameworks that are used to understand organizations are referred to as “diagnostic models”.

Open Systems Model

Inputs• Information• Energy• People

Transformations• Social Component• Technological Component

Outputs• Goods• Services• Ideas

Environment

Feedback

Open Systems ModelO This model recognizes that organizations

exist in the context of a larger environment that affects how the organization performs and in turn is affected by how the organization interacts with it.

O This also suggests that organizations and their subsystems – departments, group, and individuals – share a number of common features that explain how they are organized and function.

Properties of Systems

O EnvironmentsO Inputs, Transformations, and OutputsO BoundariesO FeedbackO EquifinalityO Alignment

Diagnosing Organizational Systems

OThe key to effective diagnosis is… OKnow what to look for at

each organizational level ORecognize how the levels

affect each other

Organization-Level Diagnostic Model

Inputs

Technology

Strategy Structure

HR Measurement Systems Systems

GeneralEnvironment

IndustryStructure

Design ComponentsC

ulture

Organization

Effectiveness

Outputs

Group-Level Diagnostic Model

Inputs

OrganizationDesign

Design Components

Team

Effectiveness

Outputs

Goal Clarity

Task Structure

Group Composition

Team Functioning

Group Norms

Individual-Level Diagnostic Model

Inputs

OrganizationDesign

Group Design

Personal Characteristics

Design Components

Individual Effectiveness

Outputs

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback about Results

Key Alignment Questions

O Do the Design Components fit with the Inputs?

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

Organization-Level InputsO General Environment

O External forces that can directly or indirectly affect the attainment of organizational objectives

O Social, technological, ecological, economic, and political factors

O Industry StructureO External forces (task environment)

that can directly affect the organization

O Customers, suppliers, substitute products, new entrants, and rivalry among competitors

Organization Design Components

O StrategyO the way an organization uses its resources

(human, economic, or technical) to gain and sustain a competitive advantage

O StructureO how attention and resources are focused on task

accomplishmentO Technology

O the way an organization converts inputs into products and services

Organization Design Components

O Human Resource SystemsO the mechanisms for selecting,

developing, appraising, and rewarding organization members

O Measurement SystemsO methods of gathering, assessing, and

disseminating information on the activities of groups and individuals in organizations

Organization Design Components

O Organization CultureO The basic assumptions, values, and

norms shared by organization members

O Represents both an “outcome” of organization design and a “foundation” or “constraint” to change

OutputsO Organization Performance

O e.g., profits, profitability, stock priceO Productivity

O e.g., cost/employee, cost/unit, error rates, quality

O Stakeholder SatisfactionO e.g., market share, employee

satisfaction, regulation compliance

AlignmentO 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.

O Organization effectiveness is likely to be high when there is good alignment.