Diagnosing Organizational
Effectiveness
A Roadmap toward Corporate Sustainability
Comprehensive Model for
Diagnosing Organizational Systems
What is Diagnosis?
•
Diagnosis is the process of understanding how the
organization is currently functioning, and it provides
information necessary to design change interventions.
•
It is also a collaborative process between organization
members and the OD (organization development)
consultant to collect pertinent information, analyze it, and
draw conclusions for action planning and intervention.
High Politics Organization:
Common Approach to Business Problems
YES
NO
DOES THE THING WORK?
DON’T MESS
WITH IT
DID YOU MESS WITH IT?
NO
YES
NO
DOES ANYONE
KNOW?
YOU DUMB
*#@>!!
YES
HIDE IT
YES
WILL YOU
CATCH HELL?
YOU POOR
$#@! ~*%$
TRASH IT
CAN YOU BLAME SOMEONE ELSE?
NO
YES
NO PROBLEM
Comprehensive Model for Diagnosing Organization
A. ORGANIZATIONAL LEVEL
Inputs
Design Components
Outputs
Strategy
- General
Environment
- Industry
Structure
B. GROUP LEVEL
Inputs
Structure
Culture
Technology
Human
Resources
Design Components
Goal Clarity
- Organization
Design
Task
Structure
Group
Functioning
Group
Composition
C. INDIVIDUAL LEVEL
Inputs
- Organization
Design
- Group Design
- Personal
Characteristics
Group
Norms
Design Components
Skill Variety
Task Identity
Task
Significance
Organization
Effectiveness
Autonomy
Feedback
about Results
Outputs
Team
Effectiveness
e.g., quality of
work life,
performance
Outputs
Individual
Effectiveness
e.g., job
satisfaction,
personal
development
Organizational-Level
Diagnosis
Organizational-Level Diagnosis
Inputs
Design Components
Outputs
Strategy
General
Environment
Structure
Culture
Industry
Structure
Human
Resources
Systems
Technology
Organization
Effectiveness
General Environment
General
Environment
•
The general environment represent the
external elements and forces that can
affect the attainment of organization
objectives.
•
It can be described in terms of amount of
uncertainty present in social,
technological, economic, ecological, and
political forces.
Five Forces of Industry Structure
Buyer
Power
Supplier
Power
Threats of
Substitutes
Industry
Structure
Threats
of Entry
Rivalry
among
Competitors
Strategy
Strategy
•
A strategy represent the way an
organization uses its resources to gain
and sustain a competitive advantage.
•
It can be described by the organization’s
mission, goals and objectives, strategic
intent, and functional policies.
Strategy Formulation
Mission –
Why We
Exist
Vision –
What We
Want to Be
Values –
What’s
Important
to Us
Analysis of
General
Environment
and Industry
Structure
Strategy :
Our Game
Plan
Analysis of
Organization’s
Core
Competence
Strategy Map :
Translate the
Strategy into
Action
Strategy Formulation
Strategic
Outcomes
Satisfied
Shareholders
Strategy :
Our Game
Plan
Strategy
Map :
Translate
the Strategy
Delighted
Customers
Excellent
Processes
Motivated
Workforce
Structure
Structure
•
The structural system describes how
attention and resources are focused on
task accomplishment.
•
It represents the basic organizing mode
chosen to (1) divide the overall work of
an organization into subunits that can
assign task to individuals and groups
and (2) coordinate these subunits for
completion of the overall work.
Culture
Culture
•
Organization culture represents the
basic assumptions, values, and norms
shared by organization members.
•
It orients employees to company goals
and suggests the kinds of behaviors
necessary for success.
Elements of Corporate Culture Formation
Organization
System and
Policy
Top
Management
View
Profile of
Employees
Industry
Characteristics
Organization
Structure
Corporate Culture
Human Resources Systems
Human
Resources
Systems
•
Human resources systems include
mechanism for selecting, developing,
appraising and rewarding organization
members.
•
HR systems influence the mix of skills,
personalities and behaviors of
organization members.
Human Resources Systems
Recruitment &
Selection
Business
Strategy
Training &
Development
Performance
Management
HR
Systems
Reward
Management
Career
Management
Business
Result
Technology
Technology
•
Technology is concerned with the way an
organization converts inputs into
products and services.
•
It represents the core of the
transformation function and includes
production methods, work flow and
equipment.
Organizational-Level Diagnosis
•
•
What is the company’s general environment?
What is the company’s industry structure?
•
•
•
What is the company’s strategy?
What is the company’s culture?
What are the company’s structure, human
resources systems, and technology?
Organizational-Level Diagnosis
Inputs
Design Components
Strategy
General
Environment
Industry
Structure
Does the
organization
strategic
orientation fit
with the
inputs?
Structure
Human
Resources
Systems
Culture
Technology
Organizational-Level Diagnosis
Design Components
Strategy
Do the design
components
fit with each
other?
Structure
Human
Resources
Systems
Culture
Technology
Group-Level Diagnosis
Group-Level Diagnosis
Inputs
Design Components
Outputs
Goal
Clarity
Organization
Design
Task
Structure
Group
Composition
Group
Functioning
Group
Norms
Team
Effectiveness
Organization Design
Organization
Design
•
Organization design is the major input to
group design.
•
It consists of the design components
characterizing the larger organization
within which the group is embedded :
technology, structure, human resources
systems and organization culture.
Group Components
Goal Clarity involves how
well the group understand
its objectives
Task Structure is
concerned with how the
group’s work is designed
Group Composition
concerns the membership of
groups
Group Functioning is the
underlying basis of group life
Group Norms are member
beliefs about how the group
should perform task
Goal Clarity
Goal
Clarity
•
Goal Clarity involves how well the group
understands its objectives.
•
In general, goals should be moderately
challenging; there should be a method of
measuring, monitoring and feeding back
information about goal achievement.
•
The goals should be clearly understood
by all members.
Task Structure
Task
Structure
•
Task Structure is concerned with how
the group’s work is designed.
•
Task structure can vary along two key
dimensions : coordination of members’
effort and regulation of their task
behavior.
Group Functioning
Group
Functioning
•
Group Functioning is the underlying
basis of group life.
•
How members relate to each other is
important in work groups because the
quality of relationship can affect task
performance.
Group Composition
Group
Composition
•
Group composition concerns the
membership of groups.
•
Members can differ on a number of
dimensions having relevance to group
behavior.
•
Demographic variables such as age
education, and job experience, can
affect how people behave and relate to
each other in groups.
Group Norms
Group
Norms
•
Group Norms are member beliefs about
how the group should perform task
•
Norms derive from interaction among
members and serve as guides to group
behavior.
Group-Level Diagnosis
•
How clear are the group’s goals?
•
What is the group’s task structure?
•
What is the composition of the group?
•
What are the group’s performance norm?
•
What is the nature of team functioning in the
group?
Individual-Level
Diagnosis
Individual-Level Diagnosis
Inputs
Design Components
Organization
Design
Skill
Variety
Group Design
Personal
Characteristics
(skill, knowledge
attitude)
Task
Identity
Autonomy
Task
Significance
Feedback
Outputs
Individual
Effectiveness
Individual-Level Diagnosis
Organization
Design
Group
Design
•
Organization design is concerned with
the larger organization within which the
individual job is the smallest unit.
•
Group design concerns the larger group
or department containing the individual
job.
•
Like organization design, group design is
an essential part of the job context.
Individual-Level Diagnosis
Personal
Characteristics
•
Personal characteristics of individuals
occupying jobs include their age,
education, experience, and skills and
abilities.
•
Personal characteristics can affect job
performance as well as how people react
to job designs.
Individual Jobs Dimensions
Skill Variety
Task Identity
Autonomy
Five Key
Dimensions
Task Significance
Feedback About Results
Individual Jobs Dimensions
Skill Variety
The degree to which the job
requires a variety of different
activities
Task Identity
The degree to which the job
requires completion of a
whole and identifiable piece
of work
Task Significance
The degree to which a job has a
significant impact on other
people’s lives
Autonomy
The degree to which a job
provides freedom and discretion
in scheduling the work and
determining work methods.
Feedback About Results
The degree to which a job provides
employee with direct and clear
information about the effectiveness of
task performance
Job Characteristics Model - Hackman/Oldham
Core Job
Dimension
Psychological
States
Skill Variety
Task Identity
Task Significance
Experienced
meaningfulness of
the wok
Autonomy
Experienced
responsibility for
outcomes of the
work
Feedback
Knowledge of the
actual results of
the work activities
Personal and
Work Outcomes
• High internal
work motivation
• High-quality work
performance
• High satisfaction
with the work
• Low turnover
Individual-Level Diagnosis
•
What is the design of the larger organization within
which the individual jobs are embedded?
•
What is the design of the group containing the
individual job?
•
What are the personal characteristics of
jobholders?
Individual-Level Diagnosis
•
How much skill variety is included in the jobs?
•
How much task identity do the jobs contain?
•
How much task significance is involved in the
jobs?
•
How much autonomy is included in the jobs?
•
How much feedback about results do the jobs
contain?
Designing Effective
Intervention
Intervention
•
A set of sequenced planned actions
or events intended to help an
organization increase its
effectiveness.
•
Interventions purposely disrupt
status quo; they are deliberate
attempts to change an organization
or subunit toward a different and
more effective state.
Intervention
Effective Intervention
Two Major
Criteria to
Define an
Effective
Intervention
1. The extent to which it fits the needs
of the organization
2. The extent to which it transfer
change-management competence to
organization members
Intervention Success Factors
Key Factors
that can affect
intervention
success
Readiness
for Change
Capability of
the Change
Agent
Capability
to Change
Cultural
Context
Types of Intervention
Human Process
Intervention
Structural
Intervention
Types of
Intervention
Human Resource
Management Intervention
Strategic
Intervention
Examples of
Human Process Intervention
Process
Consultation
This intervention focuses on
interpersonal relations and social
dynamics occurring in work groups.
Team Building
This intervention helps work groups
become more effective in
accomplishing task
Examples of
Structural Intervention
Structural Design
This change process concerns the
organization’s division of labor – how to
specialize task performances.
Downsizing
This intervention reduces costs and
bureaucracy by decreasing size of the
organization
Reengineering
This intervention radically redesign the
organization’s core work process to
create more responsive performance.
Examples of
Human Resources
Management Intervention
Performance
Management
This intervention is a systematic
process to link between corporate goal
settings and reward systems.
Career Planning &
Development
This intervention helps people choose
career paths and attain career
objectives.
Reward System
This intervention involves the design of
organizational rewards to improve
employee satisfaction and performance.
Examples of
Strategic Intervention
Merger and
Acquisition
Cultural Change
Organizational
Learning
This intervention is a systematic
process to integrate two or more
organizations.
This intervention helps organizations
develop cultures appropriate to their
strategies and environment.
This intervention seeks to enhance an
organization’s capability to acquire and
deploy new knowledge.
Institutionalizing Interventions
Intervention
Effective
Institutionalization
Process
Enhance
Organization
Performance
Factors Affecting Institutionalization Process
Organization
Characteristics:
• Congruence
• Stability
• Unionization
Intervention
Characteristics:
• Goal Specifity
• Programmability
• Level of Change Target
• Internal Support
• Sponsorship
Institutionalization
Process
Organization
Characteristics:
Congruence
Stability of
Environment and
Technology
This is the degree to which an intervention is
perceived as being in harmony with the
organization’s strategy, and structure; its
current environment; and other changes
taking place.
This involves the degree to which the
organization’s environment and technology
are changing.
Organization
Characteristics:
Unionization
Diffusion of interventions may be more
difficult in unionized settings, especially if the
changes affect unions contract issues, such
as salary and fringe benefit, job design, and
employee flexibility.
Intervention
Characteristics:
Goal Specifity
Programmability
This involves the extent to which intervention
goals are specific rather than broad.
This involves the degree to which the
changes can be programmed or the extent to
which the different intervention characteristics
can be specified early in advance to enable
socialization, commitment, and reward
allocation.
Intervention
Characteristics:
Level of
Change Target
Internal
Support
This concerns the extent to which the change
target is the total organization, rather than a
department or small work group.
This refers to the degree to which there is an
internal support system to guide the change
process.
Intervention
Characteristics:
Sponsorship
This concerns the presence of a powerful
sponsor who can initiate, allocate, and
legitimize resources for the intervention.
Recommended Further Readings
1.
Thomas Cummings and Christopher Worler, Organization Development
and Change, South Western College Publishing
2.
Stephen Robbins, Organizational Behavior, Prentice Hall
3.
Marvin Ross Weisbor, Organizational Diagnosis : A Workbook of Theory
and Practice, Perseus Books Group
End of Material