Diagnosing organizations
Methods, models, and processes
Michael I. Harrison
2005 3rd. Edition
ISBN 978-0-7619-2572-9
Presentation of key concepts and logic
Prepared by Daniel Degravel
July 2009
01.1
Ch 01 Diagnosis: approaches and methods
Introduction
Objective of textbook:
How diagnosis can help managers and consultants to act quickly
and flexibly to meet the challenges of uncertain environments
IX
4 Diagnosis understands the nature and causes of the problems or challenges initially
presented by owner, identifies additional organizational issues,, and seeks ways to solve
these problems and improve organizational effectiveness
134 Diagnosis = helping people find
what’s going on in their organization and
why, changing web of relations, serving
the owner who may be ambivalent about
receiving help, dealing with people who
may be dead-set against the diagnosis,
sorting among diagnosis constraints and
a tangle of compelling obligations,
values, and professional standards
IX Diagnosis is crucial for organizations because of organizational problems and challenges such as
competition, turbulence of environment, change management, reorganizations, improvements in productivity,
competitiveness , and quality, risk of imitation of fashionable management techniques
01.2
Ch 01 Diagnosis: approaches and methods
Why a Diagnosis?
4 Why a diagnosis?
1- Because issues or
problems
2- Because will to reduce
gap between current and
desired organizational
state
3 Some problems
1- Poor quality, delay, crisis, ineffectiveness
2- Declining demand and revenues, customer
satisfaction, criticism by stakeholders
3- Human resource issues (high turn-over,
stress, low morale)
4- Radical external changes
5- Major transitions for firm (from public to
private, family to professionally managed,
mergers, major reorganization)
6- Difficulties in implementing complex
projects (new technologies, new product
development, reorganization)
01.3
Ch 01 Diagnosis: approaches and methods
Why a Diagnosis?
3- Because need for
change
7-8 Business Oriented Project BOP
5 BOP = a set of techniques and methods to
improving economic performance and
competitive advantages. Rely more on specific
fields, such as business, and engineering
5-6 Organizational Development OD
5 OD = a set of techniques and methods to
apply behavioral science to the planned
development and reinforcement of strategies,
structures, and processes for effectiveness
Diagnosis is a form of intervention because
influences organization
1- HR: changing skills, attitudes, and values
through training; recruitment, counseling, and
placement; stress management and healthmaintenance
2- Behavior and processes: changing
interaction processes (decision-making,
communication, and leadership) through
training, team building, process consultation,
third-party intervention, and feedback of data)
3- Structure and technologies: jobs design,
rewards, administrative procedures, division of
labor, coordinating mechanisms, and job
procedures
4- Goals, strategies, and culture: goal and
strategy clarification through workshops,
exercises; facilitating ties within organization;
examining and changing corporate culture
01.4
Ch 01 Diagnosis: approaches and methods
Characteristics of Diagnosis
11 Diagnosis …
1- Applied
Focuses on readily changeable factors that affect issue or condition, even if they do not explain most of variance
and are not the most important or interesting
2- Participation
Encourages participation of members
3- Methods
Often less sophisticated and complex research design and methods
Rely more on hunches, intuition, experience, and on scientific methods
4- Neutrality
Cannot stay neutral about impact of study on organization and its members
01.5
Ch 01 Diagnosis: approaches and methods
Three dimensions of a Diagnosis
Three critical dimensions of diagnosis:
1- Process
12 Set of tasks and steps in diagnosis
2- Modeling
15 Theories and models in background
as foundation of diagnosis
3- Methods
19-20 Practical methods and techniques
collect and analyze information
01.6
Ch 01 Diagnosis: approaches and methods
Three dimensions of a Diagnosis
Process
12 Steps
a-Entry
b-Contracting
c-Study design
d-Data gathering
e-Analysis
f-Feedback to firm
13 Critical process issues
a-Purpose of diagnosis
b-Design (who, where, what, when)
c-Support and cooperation (who’s client, responsible, support? )
d-Participation (other members)
e-Analysis
f-Feedback (when, how, to whom, and what use of results?)
01.7
Ch 01 Diagnosis: approaches and methods
Three dimensions of a Diagnosis
15-18 Modeling
1- Standardized models
2- Customized models
16 Diagnostic questions related to the initial issue
a-Interpreting initial statement of problem
b-Redefining problem
c-Understanding the current state of the organization/situation
d-Identifying forces against and for change
e-Developing workable solutions
Ch 01 Diagnosis: approaches and methods
01.8
Three dimensions of a Diagnosis
17-18 Modeling
16
Level of analysis
Industry
17 Determinants
Nature of issue
Goal of diagnosis
Organizational position of client
Organization
Division
18 Scope
Department
Scope is number of variables
studied
The larger the scope, the smaller
the level of detail, and conversely
Group (team, small work unit)
Individual
of analysis
01.9
Ch 01 Diagnosis: approaches and methods
Three dimensions of a Diagnosis
19
Methods
Standards of scientific inquiry
-Reliable
-Valid (replicable)
Observation better than interview
Ch 01 Diagnosis: approaches and methods
01.10
Three dimensions of a Diagnosis
20
Methods
Three research designs:
A-Measure of dimensions or criteria for comparison between units
of analysis
Client satisfaction, organizational climate, personnel turn-over, costs, and sales
B-Isolate causes or determinants of a phenomenon (e.g.
organizational issue or desirable outcome) through multivariate
analysis of data
Impact of work quality on employee satisfaction, variables determinants of
organizational innovation
C-Understand and measure subtle and complex organizational
phenomenon, generally in a limited setting, through the gathering
of in-depth data and their analysis with inductive forms of inference
Members’ perceptions, hidden assumptions, work styles, and underground
interactions
01.11
Ch 01 Diagnosis: approaches and methods
Three dimensions of a Diagnosis
21-22
Methods for gathering data
Questionnaire
Interviews
Observations
Available records and data
Workshops and group discussion
01.12
Ch 01 Diagnosis: approaches and methods
Plan of book
Diagnosis is envisioned according different perspectives, in which the focal point varies
The open system framework is used as a general guide for all four perspectives
B
Individual and
group behaviors
Open systems
A
Diagnosis
C
Organizational Fits
and internal politics
D
Environmental
relations and strategy
Differentiators
Ch 01 Diagnosis: approaches and methods
01.13
Wrapping up
Diagnosis
3 FUNDAMENTAL DIMENSIONS
4 PERSPECTIVES
Method
Method for collect and analysis to
ensure reliability
Research design
Open systems model Ch02
(general approach with many
variables)
Assessing individual and
group behavior Ch03
(organizational situations at the
level of the individual and the
group)
Process
Steps of analysis
Framing
Defining problem, analyzing results
Models of collect and analysis
Definition of scope and topics
High value dimension
Organizational Fits and
internal politics Ch04
(organizational situations at the
level of macro variables and
internal politics)
Environmental relations
Ch05
(organizational relations with its
environment, e.g. marketing
and strategic relations)
01.14
Ch 01 Diagnosis: approaches and methods
A map
Introduction
Open systems model Ch02
(general approach with many
variables)
Assessing individual and group
behavior Ch03
(organizational situations at the level
of the individual and the group)
Organizational Fits and internal
politics Ch04
(organizational situations at the level
of macro variables and internal politics)
Environmental relations Ch05
(organizational relations with its
environment, e.g. marketing and
strategic relations)
Appendixes
12 Phases in diagnosis
13 Critical process issues
16 Diagnostic questions
21-22 Table 1.1 Comparison of methods for gathering diagnostic data
28 Figure 2.1 Organizations as open models
34-35 Basic organizational information
39 Assessing effectiveness five topics
40-41 Table 2.1 Effectiveness criteria
56 Figure 3.1 Model for diagnosing individual and group behavior
62 Figure 3.2 Action model for group task performance
77-78 Examples of problems
80 Figure 4.1 Diagnosis system fits
82-84 Questions about fits
85 Design tools to consider during diagnosis
99-100 Table 4.2 Who is powerful?
106-109 Six diagnostic guidelines
110 Figure 5.1 Model for strategy formulation
113 OSP instructions to participants in the planning process
115-116 Interview guide
A 137-141 General orientation interview
B 143-146 Instruments for diagnosis and assessment
C 147-149 A guide to diagnosing behavior during meetings
D 151-153 Resources for developing expertise in diagnosis
Ch 02 Open systems models
02.1
Introduction
The open systems model provides a representation of the firm
that guides diagnosis at different levels in the organization. In
this representation, the comparison “output – input” is a key
feature
Outline
1- Model
2- Model and diagnosis
3- Organizational data
4- Processing and analyzing information
5- Assessing effectiveness
6- Assessing feasibility of change
Ch 02 Open systems models
02.2
Model
p.27
The open systems model
organizes several components
and their relationships
Inputs (resources)
Environment
-Task
-General
Culture
Behavior and
processes; tasks and
activities
Technology
Structure
Outputs
Ch 02 Open systems models
02.3
Model
System’s components
p.27-29
1- Inputs
2- Outputs
3-Organizational behavior and processes
4-Technology
5-Environment
6-Structure
7-Culture
8-System dynamics
Ch 02 Open systems models
02.4
Model and diagnosis
Principles 1/2
System’s features
1- Model can be applied at different levels of organization
(when focus is small units, other units belong to its
environment)
2- Organization can be described as composed on interdependent components or sub-systems
5- Organization can produce some of its own inputs
8- Organization and environment change in a connected
relationship
Ch 02 Open systems models
02.5
Model and diagnosis
Principles 2/2
Effectiveness and success
3- Fit across components is critical for effectiveness
4- Positive relationship between system and its environment
is critical for effectiveness (adapt, shape, and find)
6- People are a critical resource for success
7- The recipe for success is ability to meet internal system
needs and adaptation to environment
Ch 02 Open systems models
02.6
Model and diagnosis
Principles
Use of diagnosis
1- Integrate all variables, and not only a narrow component
2- SWOT analysis
3- Success factors main contain unrealized potential
4- Break out of familiar ways to interpret problems
Ch 02 Open systems models
02.7
Organizational data
Data to be collected
p.34-36
1- Background of
diagnosis
2- Outputs
3- Goals and strategies
4- Inputs
5- Environment
6- Technology and work
processes; activities
7- Structure
8- Behavior and
processes
9- Culture and cognition
10- Systems dynamics
Ch 02 Open systems models
02.8
Processing and analyzing information
Validity of results
p.36-37
Non rigorous measures are often used
Assessment of complex situations
Awareness of impact of respondents’ views and experience
on results
To make data more valid: Inter-interviews comparison;
narratives of organization history; successes and failures;
comparison with ostensible objective of phenomena; multiple
gathering methods
Ch 02 Open systems models
02.9
Processing and analyzing information
Methods
p.37-38
Groupings of answers
Qualitative analysis
Presentation of entire set of responses to stimulate analysis
Interactions between system components
02.10
Ch 02 Open systems models
Assessing effectiveness
Introduction
Effectiveness is multidimensional and difficult to measure
Five elements: (detailed Table 2.1 p.40-41)
1-Assessment approach
2-Domains (set of conceptually related criteria)
3-Criteria
4-Operational definitions and measures
5-Standards for analysis and evaluation
Ch 02 Open systems models
02.11
Assessing effectiveness
Elements
1-Assessment approach
Underlying approach and assumptions
Output-goals; Internal system states; system
resources and adaptation; multiple stakeholders
2-Domains (set of conceptually
related criteria)
Sets of criteria in relationships
Conflicting criteria
3-Criteria
Sets of criteria
Ch 02 Open systems models
02.12
Assessing effectiveness
Elements
4-Operational definitions and
measures
Criterion and operational measure
Clarification of criterion, and identification of
indicators, and operational measures
For stakeholder approach, multiple answers varying
with conception of effectiveness
5-Standards for analysis and
evaluation
Standard necessary, as time frame and feedback
Current vs. past; Internal benchmarking of
effectiveness; outside benchmarking; current vs.
minimum standard; current vs. ideal standard
Ch 02 Open systems models
02.13
Assessing effectiveness
Choices
p.45-47
Choices have to be made regarding the appropriateness of criteria
with the organization, with its goals and settings, and with the
issue to solve
Assessment of ineffectiveness generates often more consensus
02.14
Ch 02 Open systems models
Assessing feasibility of change
If change is at stake…
Questions to consider:
-Incremental or radical change? (experimental change first)
-Organization is ready?
-How will stakeholders react? (past reactions)
-Does organization have capacities to change?
-Will change produce the results without negative
consequences?
02.15
Ch 02 Open systems models
Appendix A General orientation Interview
General interview to better know an organizational unit
p.137-141 In Appendix A, each item is detailed
1-Person and job Individual level
2-Group level Roles, technology, outputs
3-Groups structures and processes Goals, control, coordination
Group and organization levels
4-Internal environment Relations across units GOL
5-External environment Relations, history, and dynamics GOL
6-Structure GOL
7-Processes Group level
8-Culture and processes GOL
9-Culture and goals GOL
10-Problems and challenges GOL
11-Individual satisfaction Individual level
03.1
Ch 03 Assessing individual and group behavior
Introduction
Assessing individual and group behavior and their impact on
organizational effectiveness
Model provides forces and outcomes to examine in diagnosis
Ch 03 Assessing individual and group behavior
03.2
A Model
ORGANIZATIONAL
LEVEL
Goals, structure, culture, technology behavior, and
processes
Effectiveness
Resources
GROUP LEVEL
Resources
Group composition,
structure, and
technology
Group behavior
processes, culture
Effectiveness
Effectiveness
Individual job, and
tasks
INDIVIDUAL LEVEL
Human resources
Individual behavior,
attitudes, orientations
QWL, Well-being
03.3
Ch 03 Assessing individual and group behavior
Effectiveness
How to measure effectiveness?
GROUP LEVEL
Output criteria
Key goods or service produced by the group, and measure of quantity and quality
over time
INDIVIDUAL LEVEL
Members’ efforts, initiative, cooperation, absenteeism, lateness, commitment to job,
Quality of work life and well-being […]
03.4
Ch 03 Assessing individual and group behavior
Effectiveness
Which factors affect individual and group effectiveness?
GROUP LEVEL
Employees’ expectations and understandings; attitudes and perceptions about
organizational debates
Group composition, structure (reward system, communication, cooperation and
conflict, decision-making, supervisory behavior, group’s norms and beliefs
Technology
INDIVIDUAL LEVEL
Members’ characteristics such as education, design of job, motivation, attitude to
organizational actions
BOTH LEVELS
Strategies, standards, and goals
Culture
03.5
Ch 03 Assessing individual and group behavior
Effectiveness
Analysis of HRM programs
HRM program shape skills, knowledge, attitude, and behavior of employees (p.60)
Staffing
Compensation
Labor relations
Work environment
Goal setting
Planning
Job analysis
Evaluation and performance assessment
03.6
Ch 03 Assessing individual and group behavior
Effectiveness
Analysis of group task performance
The analysis here focuses only on organizational and group conditions that serve as
levers to improve task performance of a group; these conditions can enable to make
a diagnosis and build new work groups
Three critical processes are examined, which pose major hurdles to effective group
performance:
1- Joint effort to do well
2- Bringing in adequate skills and knowledge
3- Using task performance that fits the work and cultural and organizational settings
in which the work is done
03.7
Ch 03 Assessing individual and group behavior
Effectiveness
Analysis of group task performance: model of analysis (p.62)
Material and technical
resources
Organizational
context
Performance
(output)
Goals, reward,
information, training
Critical group processes
1-Effort
2-Task performance
strategies
3-Knoweldge and skills
Group design and
culture
Tasks, composition,
norms
Outside help
Other groups,
consultant, coach
03.8
Ch 03 Assessing individual and group behavior
Methods and processes
The design and the administration of a diagnosis of forces affecting individual and
group performance
Designing study
-What to study?
Central topic, data
-Which sample?
Representativeness of data
-How to administer the study?
Gathering, storing, and analyzing data must promote validity
03.9
Ch 03 Assessing individual and group behavior
Methods and processes
The design and the administration of a diagnosis of forces affecting individual and
group performance
Measurement and data-gathering techniques
-Analyzing available data
-Interviews
-Self-administered questionnaires
-Standardized instruments
MOAQ, QWL, OAI
-Observations
03.10
Ch 03 Assessing individual and group behavior
Methods and processes
The design and the administration of a diagnosis of forces affecting individual and
group performance
Analysis
-Non-statistical data
Analyzed with diagrams
Visual models
-Feedback to the owner of the study
04.1
Ch 04 System fits and organizational politics
Introduction
Assessing fit among system components and between current
system features and organizational goals and strategy
Uncovering organizational conditions that can undermine or enhance effectiveness in
entire divisions or organizations, using the open systems model
77 Fit = congruence = alignment = the extent to which the behavioral or organizational
requirements and constraints in one part of the system are compatible with those in
other parts
Chapter analyzes:
-Fit among organizational design that managers can influence
-Organizational power and politics
Macro system features often create latent conditions
77 List of internal problems that reflect poor fit among organizational features […]
78 List of external problems that reflect poor fit among organizational features […]
04.2
Ch 04 System fits and organizational politics
Diagnosis
Diagnosis of system fits
Types of fits
Fit related to
system features
that are to be
redesigned
Fit related to
problem or
challenge
FIT
Fit among different
system levels
(individual, group,
organization)
Comprehensive
diagnosis
Ch 04 System fits and organizational politics
04.3
Diagnosis
80 Diagnosis of system fits: process
Inputs
-problems
-prior findings
-models
Choose Fit
-level
-system elements,
subcomponents
Design study and gather data
-research design
-methods
-data collection
Assess degree of fit
-needs of units, system parts
-conflicts and tensions
-actual vs. official practices
-organization design models
Choose
effectiveness
criteria
Assess impact
-negative
-positive
-loose coupling
Ways to choose fits
Compatibility of requirements, needs, or procedures in
parts of system
Whether participants feel subject to conflicting
expectations or pressures
Whether system components fit together in ways
organizational research suggests they would
Summary and
feedback
Ch 04 System fits and organizational politics
04.4
Diagnosis
82-84 Checklist of important fits
Focal area
Fit with…
Environment
Internal systems; demand
Human resources
Systems processing; goals and strategies
Goals and strategies
Environment; resources; behavior and
processes; culture
Technology
Environment; behavior and processes;
structure; culture
Internal systems
Environment
Structure
Technology; behavior and processes;
environment; Human resources
Behavior and processes
Culture; environment
04.5
Ch 04 System fits and organizational politics
Diagnosis
85 Design tools to consider during diagnosis
Contractual arrangements, network ties, and alliances
Structural groupings of positions and units
Positions and procedures that monitor the environment
Job designs
Human resource programs
Management information systems
Mechanisms for coordination internal and external relationships among positions or units
Procedures for monitoring, evaluating, and rewarding performance
Performance control and quality assurance procedures
Accounting and budgeting systems
Geographic locations and physical layout
Communication channels
04.6
Ch 04 System fits and organizational politics
Diagnosis
Design issues at different levels that can be discussed through previous tools
85 Alliances among organizations
Fit across
Feedback from groups affected by alliance, questionnaires
86 Links between divisions
Vision like organizations in a network is possible
Exchange of assets
Role of Corporate HQ
Quantitative and qualitative methods
87 Mechanistic vs. organic systems
Alignment of organizational designs with environment, tasks, technology, certainty
vs. uncertainty
More organic management if some challenges are present […]
04.7
Ch 04 System fits and organizational politics
Diagnosis
Design issues at different levels that can be discussed through previous tools
87 Hierarchical vs. lateral ties
Traditional and hierarchical structures vs. lateral coordination and control designs
More links and cooperation
Pooled, sequential, reciprocal interdependencies
Lateral coordination mechanisms […]
Coordination of activities, costly and difficult to administer, ambiguity and stress, tensions
Inquiry about flow of work and information between units
Focus groups, interviews, questionnaires to examine nature of work and mechanisms for
coordination and control
04.8
Ch 04 System fits and organizational politics
Diagnosis
Design issues at different levels that can be discussed through previous tools
90 Centralization vs. decentralization
90 Decentralization Pros […]
90 Decentralization cons […]
Analysis of level of decision, actual patterns of decision making, and power distribution
91 Combining opposing design principles
Simultaneous combination of opposing principles
Centralization with lateral coordination mechanisms
IT offers opportunity to benefit from centralization and decentralization
04.9
Ch 04 System fits and organizational politics
Emergent and informal vs. official mandates
92 Another way to uncover sources of inefficiency and to
motivate desire for change is to provide feedback on gap
between officially mandated behavior and emergent
behavior and culture
Actual practices, norms, and beliefs emerge through
interactions among the people who decide and the people
who carry out instructions in practice. Negotiation takes
place to shape actual behaviors and norms
04.10
Ch 04 System fits and organizational politics
Emergent and informal vs. official mandates
92 It is possible for consultants to find gaps between official mandates through the following
emergent behavior and culture:
-Operative goals and priorities
-Working definitions of roles and responsibilities
-Work techniques and procedures
-Norms and beliefs about official rules
-Informal reward standards
-Informal leadership
-Personal ties and networks
-Routines for dealing with clients, customers, and outsiders
-Popular practices for influencing peers and superiors
04.11
Ch 04 System fits and organizational politics
Emergent and informal vs. official mandates
92 Emergent behaviors can differ greatly from official descriptions
Controlling, rewarding, supervising, decision-making, conflict management, prevailing beliefs
and norms
By shaping information that members consider as important and valid, shared beliefs affect
ability to respond to change
93 Collecting data
It is possible for consultants to find gaps between official mandates through the following
emergent behavior and culture:
-Operative goals and priorities
-Working definitions of roles and responsibilities
-Work techniques and procedures
-Norms and beliefs about official rules
-Informal reward standards
-Informal leadership
-Personal ties and networks
-Routines for dealing with clients, customers, and outsiders
-Popular practices for influencing peers and superiors
04.12
Ch 04 System fits and organizational politics
Emergent and informal vs. official mandates
93-94 Collection of data on emergent behavior and culture
Methods for collection:
-Direct observation
-Intensive interview
-Open or semi-structured interviews
-Analysis of organizational records
-Sociometric questionnaire (working and social relations)
-Critical incident method (interview to know how respondents dealt with critical incident)
-Item-path (how does product, client, or idea moves through an organization)
-Maps of relations
-Statistical analysis of network ties
Triangulation of methods and interviewees is desirable
94-95 Processing data on emergent behavior and culture
Fit or gap can be assumed to have costs and benefits
Care in interpretation because organizations are loosely coupled, organizations can operate
successfully despite incongruity and inconsistency, differentiation may exist across units,
incongruity can foster creativity and innovation, there is room for variation
04.13
Ch 04 System fits and organizational politics
Power and politics
95 Power = influence = capacity to get something done, including the ability to get
people to do things they might other wise not do
95 Political actions = attempts by actors or groups of people to obtain favorable
outcomes in areas of importance to them
Areas: budgeting, resource allocation, strategy, goals, programs, changes, conflicts and crisis
Political processes may be the focus of diagnosis or its context
Diagnosis itself is an intervention and can impact the political system
Political diagnosis helps consultation and managing change
04.14
Ch 04 System fits and organizational politics
Power and politics
97 Diagnosing distribution and use of power
Organizational consequences of politics on:
-Time
-Organizational paralysis
-Championship to promote change
-Viewpoint of specific actors
-Effectiveness criteria
-Effect of tactics used by people to influence others
97-98 Topics to study:
-Reaction to power
-Tension or conflict increase
-Political deals or personal connections undercut organizational efforts?
-Method for conflict resolution seen as fair?
-Possession of enough resources to accomplish tasks?
98 Methods
Interviews, observation, measures
Who’s to be studied?
Stakeholder analysis
04.15
Ch 04 System fits and organizational politics
Power and politics
99-100 Manifestations of power
-Resources
-Centrality
-Irreplaceability
-Structure
-Participation and influence in decision-making
-Symbols
-Reputation
Multiple measures and data-gathering techniques necessary, because power varies in areas
for different individuals or groups
Powerful forms of influence, especially those which are considered as illegitimate, are difficult
to observe. Necessity to understand the actual and emergent practices of politics
Interviews, focus groups, discussions
Triangulation and cross checking
05.01
Ch 05 Environmental relations
Introduction
Focus of chapter is analytic techniques for diagnosing
organization – environment relations
This diagnosis can be used also for improve the strategic position of the firm
Many challenges exist
Diagnosis helps to:
-identify critical external conditions
-assess current practices for managing environmental relations
-Improve the competitive position
Three analytic techniques are presented
Target is entire organization or division
The lower the autonomy of a unit, the more its environment includes other units
05.02
Ch 05 Environmental relations
Guidelines for diagnosis: three techniques
Focus of chapter is analytic techniques for diagnosing
organization – environment relations
This diagnosis can be used also for improve the strategic position of the firm
Many challenges exist
Diagnosis helps to:
-identify critical external conditions
-assess current practices for managing environmental relations
-Improve the competitive position
Area explored in organization can be large or narrow
Target is entire organization or division
The lower the autonomy of a unit, the more its environment includes other units
Ch 05 Environmental relations
05.03
Guidelines for diagnosis: three techniques
Environmental Relations
Assessment ERA
This
Open Systems Planning
OSP
This
Competitive strategy
analysis SWOT
This
Ch 05 Environmental relations
05.04
Guidelines for diagnosis: three techniques
Focus on external demands creating
problems
Lack of focus on competitive
environment
Time-consuming
Environmental
Relations Assessment
ERA
106
Six steps
1-Key conditions in organization’s environment that influence firm
2-Main organization with which firm interacts, relations, and demands or constraints
(competition, cooperation, dependence, etc.)
3-Units and individuals handling contacts
4-Organizational response to external demands and issues: avoid, adjust, intervene.
Response reflects beliefs, politics, and practices
5-Effectiveness of responses to organization’s environment
Cf. table 2.1 p40-41
Quantity and quality of resources obtained, ability to adapt to change, organization’s
strategic position, effect on internal processes
6-Improve management of external relations
Incremental or strategic changes
Actors and barriers to change
Ch 05 Environmental relations
05.05
Guidelines for diagnosis: three techniques
109
Competitive strategy
SWOT
Foundation of competitive advantage is
existence of distinctive capabilities that lead to
superiority in a domain to rivals
1-Analysis of environments (close and general)
2-Opportunities and risks
3-Analysis of resources and capabilities
4-Strengths and weaknesses
5-Combinations
6-Best match of opportunities and resources
7-Strategy (product and market)
110 Threats
110 Opportunities
111 Strengths
111 Weaknesses
Can study a focused area or a broader
system (entire firm)
Input in strategy
To identify competencies, comparison strengths and
opportunities
Financial, managerial, technical, knowledge, political, functional
competencies, innovation capability, learning capability,
Best match resources – opportunities (products, markets, cost
strategy, differentiation strategy
Increasing capabilities and overcoming weaknesses
Ch 05 Environmental relations
05.06
Guidelines for diagnosis: three techniques
113
Open systems planning
OSP
Collaborative and decision-making
approach
Client-centered diagnostic intervention, where participants have responsibility and authority to engage in
strategic decision making and planning
1-Analysis of current environmental conditions
2-Analysis of current responses to environment
3-Analysis of actual priorities and purposes
(goals, values, organization internal features)
4-Prediction of trends and conditions
5-Define ideal future (scenarios for ideal future)
6-Compare ideal and current states, and identify gaps
7-Establish priorities to gaps
8-Plan action for moving toward agreed upon future states by narrowing gaps, resolve disagreements,
follow up on actions, and update plans
Ch 05 Environmental relations
05.07
Methods
Data collection
1-Direct investigation
Collecting data from organization’s stakeholders, from
outside sources (internet, professional associations, press
and media), from industry experts
Interview based on ERA
2-Indirect investigation
From top managers
3-Constructing an interview guide
Flexibility, adapt to organization, taking into account
previous answers
4-Questionnaires
Standardized questionnaire with reliable and structured
measures of external relations and conditions
-Organizational Assessment
-International Organizational Observatory
-National Organizations Survey
Each major heading would be broken down
1-External conditions
2-Outside organizations and ties
3-Units or people handling relationships
4-Current management of problems, demands,
and opportunities
5-Effectiveness of current actions
6-ways to improve current environmental
management
Ch 05 Environmental relations
05.08
Methods
Data analysis and feedback
1-Data analysis and interpretation
Examination of fit between external environment and
organizational features
In large organizations, units face sub-environments
2-Feedback
Focuses directly on effectiveness of tactic and ways to
enhance effectiveness
Analysis of environment as stimuli for self analysis and
decision making; interpretations of environment are shaped
by many factors
Based on ERA, sub-environment can be further
analyzed :
1-Predictability
2-Complexity
3-Competitiveness
4-Dependence on other organizations
5-Degree of economic or political threat or
support to unit and organization
6-Distinctive problems and challenges
7-Tactics for managing external relations
06.01
Ch 06 Challenges and dilemmas for diagnosis
Introduction
Successful diagnosis requires practitioners to meet
requirements of diagnostic process, modeling, and
methods
Difficult choices between project goals, beneficiaries of
diagnosis, and professional and personal values
Three challenges:
1-processual
2-methodological
3-analytic
Models work as frames and guides
Practitioners must combine these partial frames
Three diagnostic dilemmas
1-goal dilemma
2-politics dilemma
3-professionalism dilemma
134 Balancing act of
managing different
tensions
-Needs and desires of owner
-Needs and desires of
stakeholders
-Own professional
understanding and values
-Valid, quality, believable
diagnosis vs. constraints time
and resources
-Need to promote cooperation
vs. diagnosis and
responsiveness of findings
134 No universal solution
Anticipating difficulties
reduces tensions
06.02
Ch 06 Challenges and dilemmas for diagnosis
Goals dilemma
Pursuing modest objectives that can be
obtained quickly and easily vs. more
promising and ambitious objectives that
require more effort and are riskier
Hierarchy of goals
1-Provide specific information or evaluation
Short term and incremental improvements
2-Solve a specific problem or reduce ineffectiveness
3-Assess organizational effectiveness, and recommend
ways to improve effectiveness
Long term and fundamental impacts
4-Contribute to organizational learning
5-Contribute to organizational transformation through
fundamental changes
Ch 06 Challenges and dilemmas for diagnosis
06.03
Goals dilemma
Sources of tension and conflict
Costs vs. benefits
Conflicting goals
One goal may block another one, laterally or
horizontally (different levels of goals)
Costs and risks for each stakeholders in the
diagnosis process
Tendency to focus on specific organizational
issues and styles
Disagreement about goals
Tendency to focus on low-level goals
Risks and benefits of each focus and nature of
goals
Resistance of members for different reasons
Solutions
Starting with lower-level diagnosis
Sequencing goals
Diagnosis on ineffectiveness, rather than on enhancing effectiveness
Conducting diagnosis to report on disagreement among stakeholders and assessing how organization
handles the differences
06.04
Ch 06 Challenges and dilemmas for diagnosis
Politics dilemma
Seeking benefits for specific members of the
organization
Who will benefit?
A group will benefit more than another one
1-Reveals weaknesses
2-Enhances resources or authority
3-Increase power or ability to take actions
4-Supports political positions
Solutions
From providing benefit for everyone
To
Considering that specific service to client
Preserve confidentiality
Avoid unjustifiable harm ro the interest of individual
members
Chart a middle course
Seek broad sponsorship and supervision of diagnosis
across organization
Provide client with valid information and allow him
freedom to decide
Who’s appropriate client?
06.05
Ch 06 Challenges and dilemmas for diagnosis
Professionalism dilemma
Maintaining strict professional standards vs.
responding to personal values, needs and
interests
Solutions
Sources of tensions
1-Professional integrity vs. pleasing the owner of the study, and
maintain professional credibility
2-Approval for decisions already made (pet theory); or diagnosis
to ward-off critics
3-Seem ignorant and loose project if admit that it lies beyond area
of specialization
4-Tentative and ambiguous status of applied social and behavioral
sciences
5-Publication of reports and findings from the projects
Avoid or terminate projects that involve threats
to honest diagnosis
Broaden approach and promote genuine
organizational improvements
Problem cannot be handled with off-the-shelf
techniques
Disclose honest limitations to knowledge and
experience
Sharing limitations of theory with owner?
Depends on relation
Formulating, checking, and reformulating
analysis and methods; experimental attitude
No justification for personal gain in ways that
harm owner or generates unjustified and
hidden costs
06.06
Ch 06 Challenges and dilemmas for diagnosis
Professionalism dilemma
Maintaining strict professional standards vs.
responding to personal values, needs and
interests
Solutions
Sources of tensions
Conducting own evaluation
Evaluation of diagnosis projects
Ideally, diagnosis should be subject to evaluation
Publishing reports and hiding real names
But many practical limitations:
-confidentiality
-no will to do so
-lost contact with owner after diagnosis
-diagnosis only one link in a complex chain of actions
Possible criteria:
a- Perceived usefulness of diagnosis
b- Extent to which diagnosis helps to solve specific
issues and improve effectiveness
c- Contribution of diagnosis to owner’s assessment of
their organization
d- Perceived usefulness of recommendations
e- Degree of use of diagnosis feedback in decisionmaking and planning
f- Degree to which participation in diagnosis and receipt
of feedback contributes to the owner’s capacity for self
assessment, group decision-making, and action
planning
06.07
Ch 06 Challenges and dilemmas for diagnosis
Professionalism dilemma
Maintaining strict professional standards vs.
responding to personal values, needs and
interests
Sources of tensions
Preserving personal integrity
Serving owner and respecting personal ethics and values
Ethical issues are rarely clear-cut
Enhancing the power of top management
Solutions
Practitioner should be aware of
political implications of
diagnosis and their implicit
value stances concerning uses
and abuses of power
Helping less powerful groups
Appendixes for diagnosis
07.01
Introduction
Different diagnosis tools to help
A- General orientation interview
B- Instruments for diagnostic and assessment
C- A guide to diagnosing behavior during meetings
D- Resources for developing expertise in diagnostic
07.02
Appendixes for diagnosis
A- General orientation interview
Understanding features of department and unit and challenges
I Person and job
II Work roles, technology and outputs
III Group structures and processes
IV Environment: relations to units
V Environment: external relations, system dynamics, and history
VI Structure
VII Processes
VIII Culture and processes
IX Culture and goals
X Problems and challenges
XI Individual satisfaction
07.03
Appendixes for diagnosis
B- Instruments for diagnosis and assessment
Broad instruments and models
I Organizational Assessment Inventory OAI
II Michigan Organizational Assessment Questionnaire
III Organizational Assessment Survey
IV Organizational Fitness Profiling
V Burke-Litwin Model and Survey
Focused instruments and models
I Human Resources Scorecard
II National organization Survey
III Culture audits
IV Team diagnostic Survey
V Instruments for Organizational Development and Team Building
VI Multifactor Leadership Questionnaire
07.04
Appendixes for diagnosis
C- A guide to diagnosing behavior during meetings
Questions about group meetings
I Goals, targets, and procedures
II Participation
III Flows of information and ideas
IV Problem solving
V Decision-making
VI Conflict
VII Interpersonal relations and feelings
VIII Outcomes
Appendixes for diagnosis
07.05
D- Resources for developing expertise in diagnosis
I Academic training
II Workshops and conferences
III Readings
Ch 01 Diagnosis: approaches and methods
008
Strategic
analysis
3
Vision and
Mission
1
Goals and
objectives
2
Outside
Inside
STRATEGY
4
Implementation