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.