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

OThe 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
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Outputs
Group-Level
Diagnostic Model
Inputs

Organization
Design


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


Organization
Design

Group Design

Personal
Characteristics


Design Components
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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.