Chapter 5

The Diagnostic Process

An Experiential Approach to Organization Development 7th edition Chapter 5

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 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

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 Learning Objectives (part 2 of 2)

Describe major diagnostic models and

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

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 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.

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 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.

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 Diagnosing Problem Areas
(part 2 of 2)

Provides information that allows for faster-

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

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 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

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 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

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 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?

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 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

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 Figure 5.1
The Diagnostic Process

An Experiential Approach to Organization Development 7th edition Chapter 5

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 Performance Gap

Difference between what organization could do

and what organization is doing.

An Experiential Approach to Organization Development 7th edition Chapter 5

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 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

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 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

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 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.

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 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

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 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

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 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

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 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

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 Data Collection Stages (part 3 of 4)

Selection of Key Factors

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

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 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.

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 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.

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 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.

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 Figure 5.3
Sociogram

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 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.

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 Types of Methods (part 4 of 4)

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

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 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

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 Analysis of Data

Techniques used to analyze data dictated by

method used to gather data.

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 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.

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 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.

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 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

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 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

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 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

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 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

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 Table 5.1
Orientation of Functional Departments

An Experiential Approach to Organization Development 7th edition Chapter 5

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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

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 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

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 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

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 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

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 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

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 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

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 Figure 5.4
Force-Field Analysis Model

An Experiential Approach to Organization Development 7th edition Chapter 5

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 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

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 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.

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 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.

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 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.

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 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.

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 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.

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 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.

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 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.

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 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.

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

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

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 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.

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