5 Diagnosing

Discuss the philosophy and purpose of diagnosis in organization development (OD). Explain the role of diagnostic models in OD, especially the open-systems model. Describe and apply organization-level diagnostic processes. Describe and apply group-level diagnostic processes. Describe and apply individual-level diagnostic processes.

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 Open Systems Model ENVIRONMENT FEEDBACK INPUTS TRANSFORMATIONS OUTPUTS Information Energy Social Component Technological Component Finished Goods Services Ideas FEEDBACK

Properties of Systems Environments Inputs, Transformations, and Outputs Boundaries Feedback Alignment

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

Organization-Level Diagnostic Model Inputs Design Components Outputs Organization Effectiveness e.g. performance, productivity, stakeholder satisfaction General Environment Task Environment Enacted Environment Strategy Structure Technology Culture Human Resources Systems Management Processes

Group-Level Diagnostic Model Inputs Design Components Outputs Organization Design Culture Team Effectiveness e.g. quality of work life, performance Goal Clarity Task Structure Team Functioning Group Composition Group Norms

Individual-Level Diagnostic Model Inputs Design Components Outputs Organization Design Culture Group Design Personal Characteristics Individual Effectiveness e.g. job satisfaction, performance, absenteeism, personal development Skill Variety Task Identity Autonomy Feedback about Results Task Significance

Organization Environments and Inputs Environmental Types General Environment Task Environment and Industry Structure Enacted Environment Environmental Dimensions Rate of Change and Complexity Information Uncertainty

Organization Design Components Strategy The way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage Technology The way an organization converts inputs into products and services Structure The way an organization divides and coordinates work into and across subunits which assign tasks to groups or individuals

Organization Design Components Human Resource Systems The mechanisms for selecting, developing, appraising, and rewarding organization members 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

Organization-Level Outputs Outputs are measures of how well the design contributes to organization effectiveness on three kinds of outcomes. Organization Performance Profits, profitability, stock price Productivity Cost/employee, cost/unit, error rates, quality Stakeholder Satisfaction Market share, employee satisfaction, regulation compliance, sustainability

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

Key Alignment Questions Does the organization’s strategy fit with the inputs? Do the organization design components fit with each other to jointly support the strategy?