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 Model O 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 Environments O Inputs, Transformations, and Outputs O Boundaries O Feedback O Equifinality O Alignment

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

Organization-Level Diagnostic Model Inputs Technology Strategy Structure HR Measurement Systems Systems General Environment Industry Structure Design Components Culture Organization Effectiveness Outputs

Group-Level Diagnostic Model Inputs Organization Design Design Components Team Effectiveness Outputs Goal Clarity Task Structure Group Composition Team Functioning Group Norms

Individual-Level Diagnostic Model Inputs Organization Design 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 Inputs O 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 Structure O 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 Strategy O the way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage O Structure O how attention and resources are focused on task accomplishment O Technology O the way an organization converts inputs into products and services

Organization Design Components O Human Resource Systems O the mechanisms for selecting, developing, appraising, and rewarding organization members O Measurement Systems O methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations

Organization Design Components O Organization Culture O 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

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

Alignment O 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.