Diagnosing Organizational Effectiveness

Diagnosing Organizational
Effectiveness
A Roadmap toward Corporate Sustainability
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Contents
1. Comprehensive Model for Diagnosing Organizational Systems
2. Organization-Level Diagnosis : Strategy, Structure, Culture,

People and Technology
3. Group-Level Diagnosis : Group Dynamics and Group

Performance
4. Individual-Level Diagnosis : Employee Satisfaction and

Performance
5. Designing Effective Organization Intervention
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Comprehensive Model for
Diagnosing Organizational Systems
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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.
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High Politics Organization:
Common Approach to Business Problems
YES NO
DOES THE THING WORK?
DON’T MESS
DID YOU MESS WITH IT?
WITH IT
NO
YES
NO DOES ANYONE YOU DUMB

KNOW? *#@>!!
HIDE IT YES YES

WILL YOU
CATCH HELL?
YOU POOR
$#@! ~*%$
TRASH IT
CAN YOU BLAME SOMEONE ELSE?

NO
YES
NO PROBLEM
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Comprehensive Model for Diagnosing Organization
A. ORGANIZATIONAL LEVEL
Inputs Design Components Outputs
Strategy
- General
Structure Culture Organization
Environment
Effectiveness
- Industry
Structure Human Technology
Resources
B. GROUP LEVEL
Goal Clarity
Team
Task Group
- Organization Structure Effectiveness
Functioning
Design e.g., quality of
Group Group work life,
Composition Norms performance
C. INDIVIDUAL LEVEL
Skill Variety Individual
- Organization Effectiveness
Design Task Identity Autonomy
e.g., job
- Group Design
- Personal satisfaction,
Characteristics Task Feedback personal
Significance about Results development
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Organizational-Level
Diagnosis
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Organizational-Level Diagnosis
Strategy
General
Environment Structure Culture Organization
Effectiveness
Industry
Structure
Human Technology
Resources
Systems
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General Environment
General
• The general environment represent the
Environment 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.
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Five Forces of Industry Structure
Buyer
Power
Supplier Threats of
Power Substitutes
Industry
Structure
Rivalry
Threats among
of Entry 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
Analysis of
General
Mission – Environment
Why We and Industry
Exist Structure
Vision – Strategy Map :

Strategy :
What We Translate the
Our Game
Want to Be Strategy into
Plan
Action
Values –
What’s Analysis of
Important Organization’s
to Us Core
Competence
Strategy Formulation
Strategic
Outcomes
Satisfied
Shareholders
Strategy : Strategy Delighted

Our Game Map : Customers
Plan Translate Excellent
the Strategy 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 Top Industry

System and Management Characteristics
Policy View
Profile of Organization
Employees Structure
Corporate Culture
Human Resources Systems
Human • Human resources systems include

Resources mechanism for selecting, developing,
Systems appraising and rewarding organization
members.
• HR systems influence the mix of skills,
personalities and behaviors of
organization members.
Human Resources Systems
Recruitment &
Selection
Training & Performance

Business Development Management Business
Strategy Result
HR
Systems
Reward Career
Management Management
Technology
• Technology is concerned with the way

Technology
an organization converts inputs into
products and services.
• It represents the core of the
transformation function and includes
production methods, work flow and
equipment.
• 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?
Inputs Design Components
Strategy
Does the
General
Environment organization Structure Culture
strategic
Industry orientation fit
Structure
with the
inputs? Technology
Human
Resources
Systems
Design Components
Strategy
Do the design
Structure Culture
components
fit with each
other?
Human Technology
Resources
Systems
Group-Level Diagnosis
Goal
Clarity
Organization Task Group Team

Structure Functioning
Design Effectiveness
Group Group
Composition Norms
Organization Design
Organization
• Organization design is the major input to
Design 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 Group Functioning is the

concerned with how the underlying basis of group life
group’s work is designed
Group Composition Group Norms are member

concerns the membership of beliefs about how the group
groups should perform task
Goal Clarity
• Goal Clarity involves how well the group

Goal
understands its objectives.
Clarity
• 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 is concerned with how

Task
the group’s work is designed.
Structure
• Task structure can vary along two key
dimensions : coordination of members’
effort and regulation of their task
behavior.
Group Functioning
Group • Group Functioning is the underlying

Functioning 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 • Group composition concerns the

Composition 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 • Group Norms are member beliefs about

Norms how the group should perform task
• Norms derive from interaction among

members and serve as guides to group
behavior.
• 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
Organization Skill
Variety
Design
Group Design Task Task Individual

Identity Significance
Effectiveness
Personal
Characteristics
(skill, knowledge Autonomy Feedback
attitude)
Organization
• Organization design is concerned with
Design the larger organization within which the
individual job is the smallest unit.
Group
• Group design concerns the larger group
Design or department containing the individual
job.
• Like organization design, group design is
an essential part of the job context.
Personal
• Personal characteristics of individuals
Characteristics 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 Autonomy

The degree to which the job The degree to which a job
requires completion of a provides freedom and discretion
whole and identifiable piece in scheduling the work and
of work determining work methods.
Task Significance Feedback About Results

The degree to which a job has a The degree to which a job provides
significant impact on other employee with direct and clear
people’s lives information about the effectiveness of
task performance
Job Characteristics Model - Hackman/Oldham
Core Job Psychological Personal and

Dimension States Work Outcomes
Skill Variety Experienced

Task Identity meaningfulness of
Task Significance the wok • High internal
work motivation
Experienced • High-quality work
Autonomy responsibility for performance
outcomes of the • High satisfaction
work with the work
• Low turnover
Knowledge of the
Feedback actual results of
the work activities
• 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?
• 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.
Intervention
• Interventions purposely disrupt
status quo; they are deliberate
attempts to change an organization
or subunit toward a different and
more effective state.
Effective Intervention
Two Major 1. The extent to which it fits the needs

of the organization
Criteria to
Define an 2. The extent to which it transfer
Effective change-management competence to
Intervention organization members
Intervention Success Factors
Readiness Capability of
Key Factors for Change the Change
that can affect Agent
intervention
success Capability Cultural
to Change Context
Types of Intervention
Human Process
Intervention
Structural
Intervention
Types of
Intervention Human Resource
Management Intervention
Strategic
Intervention
Examples of
Human Process Intervention
Process This intervention focuses on

interpersonal relations and social
Consultation
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 This intervention is a systematic

process to link between corporate goal
Management
settings and reward systems.
Career Planning & This intervention helps people choose

Development 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 This intervention is a systematic

process to integrate two or more
Acquisition
organizations.
Cultural Change This intervention helps organizations

develop cultures appropriate to their
strategies and environment.
Organizational This intervention seeks to enhance an

Learning organization’s capability to acquire and
deploy new knowledge.
Institutionalizing Interventions
Effective
Intervention
Institutionalization
Process
Enhance
Organization
Performance
Factors Affecting Institutionalization Process
Organization
Characteristics:
• Congruence
• Stability
• Unionization Institutionalization
Process
Intervention
Characteristics:
• Goal Specifity
• Programmability
• Level of Change Target
• Internal Support
• Sponsorship
Organization
Characteristics:
This is the degree to which an intervention is

Congruence perceived as being in harmony with the
organization’s strategy, and structure; its
current environment; and other changes
taking place.
Stability of This involves the degree to which the

Environment and organization’s environment and technology
Technology are changing.
Organization
Characteristics:
Diffusion of interventions may be more

Unionization 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:
This involves the extent to which intervention

Goal Specifity goals are specific rather than broad.
This involves the degree to which the

Programmability
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:
This concerns the extent to which the change

Level of
target is the total organization, rather than a
Change Target
department or small work group.
This refers to the degree to which there is an

Internal
internal support system to guide the change
Support
process.
Intervention
Characteristics:
This concerns the presence of a powerful

Sponsorship
sponsor who can initiate, allocate, and
legitimize resources for the intervention.
References/Recommended Further Readings
Thomas Cummings and Christopher Worley, Organization Development

and Change, South Western College Publishing.
You can obtain this excellent book at this link:
http://www.amazon.com/Organization-Development-InfoTrac-College-Printed/dp/0324421389/ref=sr_1_1?ie=UTF8
Stephen Robbins, Organizational Behavior, Prentice Hall

http://www.amazon.com/Organizational-Behavior-12th-Book-CD-ROM/dp/0131890956/ref=pd_bbs_sr_1?ie=UTF8&
Marvin Ross Weisbor, Organizational Diagnosis : A Workbook of Theory

and Practice, Perseus Books Group
http://www.amazon.com/Organizational-Diagnosis-Workbook-Theory-Practice/dp/0201083574/ref=sr_1_1?ie=UTF8
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Diagnosing Organizational

1. Comprehensive Model for Diagnosing Organizational Systems

2. Organization-Level Diagnosis : Strategy, Structure, Culture,

3. Group-Level Diagnosis : Group Dynamics and Group

4. Individual-Level Diagnosis : Employee Satisfaction and

5. Designing Effective Organization Intervention

• Diagnosis is the process of understanding how the

• It is also a collaborative process between organization

NO DOES ANYONE YOU DUMB

HIDE IT YES YES

CAN YOU BLAME SOMEONE ELSE?

Inputs Design Components Outputs

Vision – Strategy Map :

Strategy : Strategy Delighted

Organization Top Industry

Human • Human resources systems include

Training & Performance

• Technology is concerned with the way

• What is the company’s general environment?

• What is the company’s strategy?

Inputs Design Components

Inputs Design Components Outputs

Organization Task Group Team

Goal Clarity involves how

Task Structure is Group Functioning is the

Group Composition Group Norms are member

• Goal Clarity involves how well the group

• The goals should be clearly understood

• Task Structure is concerned with how

Group • Group Functioning is the underlying

• How members relate to each other is

Group • Group composition concerns the

• Members can differ on a number of

• Demographic variables such as age

Group • Group Norms are member beliefs about

• Norms derive from interaction among

• 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

Inputs Design Components Outputs

Group Design Task Task Individual

Task Identity Autonomy

Task Significance Feedback About Results

Task Identity Autonomy

Task Significance Feedback About Results

Core Job Psychological Personal and

Skill Variety Experienced

• What is the design of the larger organization within

• What is the design of the group containing the

• What are the personal characteristics of

• 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

• How much autonomy is included in the jobs?

• How much feedback about results do the jobs

• A set of sequenced planned actions

Two Major 1. The extent to which it fits the needs

Process This intervention focuses on

Team Building This intervention helps work groups

Structural Design This change process concerns the

Downsizing This intervention reduces costs and

Reengineering This intervention radically redesign the