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Chapter 5

The Diagnostic Process

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 1
Learning Objectives (part 1 of 2)

Identify system parameters and recognize


symptoms, problems, and causes of
organizational ineffectiveness.
Recognize techniques for gathering
information from client systems.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 2
Learning Objectives (part 2 of 2)

Describe major diagnostic models and


techniques used in OD programs.
Apply systematic diagnosis to organizational
situations.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 3
Data Mining at McDonalds?
(part 1 of 2)

McDonalds has new method of gathering data


from customers.
Sends mystery-diners to restaurants.
Collects data useful to individual store.
Evaluators trained so there was consistency
in grading.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 4
Data Mining at McDonalds?
(part 2 of 2)

Stores evaluated every six months.


Simultaneously conducts in-depth interviews
with repeat customers.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 5
Diagnosing Problem Areas
(part 1 of 2)

Identification of areas for improvement.


Assess organizations current performance and
desired level of quality.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 6
Diagnosing Problem Areas
(part 2 of 2)

Provides information that allows for faster-


reacting organization.
Analyzes data on structure, administration,
interaction, and other elements.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 7
What is Diagnosis?

A systematic approach to understand present


state of organization.
Specifies nature of problem, causes, and
provide basis for selecting strategies.
Involves systematic analysis of data.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 8
Critical Issues in Diagnosis

Simplicity. Primary factors.


Visibility. Measure whats
Involvement. important.
Sense of urgency.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 9
The Process

Diagnosis is cyclical process involving:

Data gathering. Interpretation.


Identification of Potential action
problem areas. programs.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 10
Steps in Diagnosis (part 1 of 2)

Step 1: Tentative problem identified.


Step 2: Collect data.
Step 3: Analyze data.
Step 4: Feedback data.
Step 5: More data needed?

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 11
Steps in Diagnosis (part 2 of 2)

Step 6: Problems areas identified.


Step 7: Is client motivated?
Step 8: Diagnosis and work on problem.
Step 9: Monitor and assess results.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 12
Figure 5.1
The Diagnostic Process

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 13
Performance Gap

Difference between what organization could do


and what organization is doing.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 14
Self-Assessment Gap Analysis
of Four Key Areas
1. Organizations strengths.
2. What can be done to take advantage of
strengths.
3. Organizations weaknesses.
4. What can be done to alleviate weaknesses.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 15
Figure 5.2
The Performance Gap

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 16
OD in Practice:
Diagnosis For Kodak (part 1 of 3)
Kodak is attempting to transform to cutting edge
of digital revolution.
Kodak surveyed managers.
Rearranged business in late 1990s.
Limited in its scope and of little benefit.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 17
OD in Practice (part 2 of 3)

Kodak known to favor caution over risk-taking.


Kodak is chemical company that must transform
into electronics company.
Electronics highly competitive and Kodak has
little experience with electronics.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 18
OD in Practice (part 3 of 3)

New products and change.


Kodak focuses attention on nonconsumer
applications.
Experiencing strong growth.
New managers have proven track
records.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 19
Data-Collection Process

Data is an aggregation of:

Signs. Statistics.
Signals. Opinions.
Clues. Assumptions.
Facts.

Information is data that have form and structure.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 20
Data Collection Stages (part 1 of 4)

1. Definition of objectives.
2. Selection of factors.
3. Selection of data-gathering method.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 21
Data Collection Stages (part 2 of 4)

Definition of Objectives
Define objectives of change program.
Identify preliminary diagnosis and further
information required.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 22
Data Collection Stages (part 3 of 4)

Selection of Key Factors


Identify central variables.
May be necessary to increase range and depth
of data.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 23
Data Collection Stages (part 4 of 4)

Selection of Data-Gathering Method


Selection of one or more methods of gathering
data.
Nature of the problem helps determine method.
Variety of methods may be used.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 24
Types of Methods (part 1 of 4)

1. Secondary sources.
2. Organization and industry data.
3. Employee surveys or questionnaires.
Useful with a large number of people.
Data may lack richness.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 25
Types of Methods (part 2 of 4)

Sociogram
Visual method of recording and analyzing
preferences in a group.
Each member represented by circle.
Communication represented by arrows
indicating direction of choice.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 26
Figure 5.3
Sociogram

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 27
Types of Methods (part 3 of 4)

Direct observation.
Observing how people go about tasks.
Interviews.
One of most widely used methods.
Direct, personal, and flexible.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 28
Types of Methods (part 4 of 4)

Directed interview.
Open-ended questions.
Closed questions.
Nondirected interview.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 29
Implementation of
Data Collection
Decide from whom data will be obtained.
Select appropriate technique.
Implement data-collection program.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 30
Analysis of Data

Techniques used to analyze data dictated by


method used to gather data.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 31
Guidelines for Evaluating
Effectiveness of Data Collection
Validity of data.
Time to collect data.
Cost of data collection.
Organization culture and norms.
Hawthorne effect in data collecting.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 32
Our Changing World:
eBay, Center for Global
Commerce (part 1 of 2)
eBay has become marketplace of world.
eBay driven by understanding data.
CEO Whitman says, If you cant measure it,
you cant control it.
Understanding data is how eBay learns about
its customers.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 33
Our Changing World (part 2 of 2)

Changes at eBay are like needle-moving.


Make small changes to make small gains.
Danger is that eBay becomes obsessed with
data and measurements.
You have to be careful because you could
measure too much, Whitman says.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 34
Diagnostic Models

Of OD practitioners, 70% reported using a


model to assist in identifying problems.
Models may be used to analyze structure,
culture, and behavior of organization.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 35
Types of Diagnostic Models

Analytical Sociotechnical systems


Emergent-group Cause maps and social
behavior network analysis
Management Force-field analysis
practitioner

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 36
Analytical Model

Used for interdepartmental issues.


Examines characteristics of departments.
Objective to help departments achieve
integration.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 37
Table 5.1
Orientation of Functional Departments

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 38
Emergent-Group Behavior Model

Used to analyze interdependence of groups.


Collects data on activities, interactions, and
norms.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 39
Management Practitioner Model
Six basic factors are analyzed:
Basic planning. Advertising and
General business promotion.
practices. Market research.
Finance. Personnel.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 40
Sociotechnical Systems Model

Two interrelated systems in organization:


Social system. Technical system.
The 2 systems are interrelated.
Diagnosis determines interrelationships and
type of feedback required.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 41
Cause Maps and Social Network
Analysis Models
Cause mapsmathematical representations of
relationships among variables.
Social network analysismathematical
representation of individual and group.
Analysis reveals important interdependencies.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 42
Force-Field Analysis Model
(part 1 of 2)

Behavior balance between forces working in


opposite directions.
Restraining forces - act to keep organization
stable.
Driving forces - act to change organization.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 43
Force-Field Analysis Model
(part 2 of 2)

When forces equal, organization in quasi-


stationary state of equilibrium.
Analysis determines forces to increase or
decrease.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 44
Figure 5.4
Force-Field Analysis Model

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 45
Figure 5.5
Example of Use of Force-Field Analysis

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 46
Red Flags in Diagnosis

Confidentiality of data.
Over diagnosis.
Crisis diagnosis.
Overwhelming diagnosis.
Practitioners favorite diagnosis.
Diagnosis of symptom.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 47
Key Words and Concepts

Analytical model - Examines characteristics of


departments. Objective to help departments
achieve integration.
Cause maps - uses mathematical
representations of causal relationships
among variables.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 48
Clique - in a sociogram, when three or more
persons select one another.
Closed questions - specific questions
normally answered yes or no.
Confidentiality - privileged communications
that should not be divulged.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 49
Data - unstructured, unformed facts.
Diagnosis - analysis of problem(s).
Directed interview - interview in which specific
information is sought.
Driving forces - put pressure on organization
to change.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 50
Emergent-group behavior model - used to
analyze interdependence of groups.
Equilibrium restraining and driving forces for
change equal or in balance.
Force-field analysis model - weights forces
for and against change.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 51
Hawthorne effect - act of investigating or
observing may influence the behavior of
those being investigated.
Information - data that has structure and form.
Isolates individuals within a group who are
chosen rarely by others.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 52
Mutual choice - when individuals within a
group choose one another.
Nondirected interview - interview direction is
chosen by respondent.
One-way choice - when individual in group
chooses another but is not chosen in return.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 53
Open-ended questions - allows respondent to
be unrestrained and to direct interview.
Performance gap - difference between
desired and actual performance.
Questionnaires - method of gathering data
normally used for large number of responses.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 54
Restraining forces - forces that act to keep
organization stable.
Social network analysis model - uses
mathematical representation of relationships
between individuals or groups and reveals
interdependencies.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 55
Sociogram - diagram of relationships and
interactions within group.
Sociometric approach technique for
collecting quantitative data on work groups.
Result of approach is sociogram.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 56
Sociotechnical systems model - determines
how social and technological systems
interrelate and the feedback between
subsystems.
Stars those highly chosen individuals.

An Experiential Approach to Organization Development 7th edition Chapter 5


Slide 57
Preparations for Next Chapter

Read Chapter 6.
Prepare for OD Skills Simulation 6.1. Read
the Company Situation and complete Step 1.
Read and analyze Case: The Hexadecimal
Company.

An Experiential Approach to Organization Development 7th edition Chapter 5


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