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
Environment
Inputs
• Information
• Energy
• People
Transformations
• Social Component
• Technological
Component
Feedback
Outputs
• Goods
• Services
• Ideas
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
Design Components
Outputs
Technology
Industry
Structure
Strategy
HR
Systems
Structure
Measurement
Systems
Organization
Effectiveness
General
Environment
Group-Level
Diagnostic Model
Organization
Design
Design Components
Outputs
Goal Clarity
Team Effectiveness
Inputs
Task
Structure
Group
Composition
Team
Functioning
Group Norms
Individual-Level
Diagnostic Model
Inputs
Design Components
Organization
Design
Task
Identity
Autonomy
Group Design
Personal
Characteristics
Task
Significance
Feedback
about Results
Individual Effectiveness
Skill Variety
Outputs
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.