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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
DOES THE THING WORK?
DONT MESS
WITH IT
DID YOU MESS WITH IT?
YOU DUMB
*#@>!!
DOES ANYONE
KNOW?
WILL YOU
CATCH HELL?
HIDE IT
TRASH IT
YOU POOR
$#@! ~*%$
CAN YOU BLAME SOMEONE ELSE?
NO PROBLEM
YES NO
YES
NO
NO
YES YES
YES
NO
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A. ORGANIZATIONAL LEVEL
B. GROUP LEVEL
C. INDIVIDUAL LEVEL
- General
Environment
- Industry
Structure
Inputs
Design Components
Organization
Effectiveness

Outputs
Strategy
Structure Culture
Human
Resources
Technology
- Organization
Design

Inputs
Design Components
Team
Effectiveness
e.g., quality of
work life,
performance
Outputs
Goal Clarity
Task
Structure
Group
Functioning
Group
Composition
Group
Norms
- Organization
Design
- Group Design
- Personal
Characteristics
Inputs Design Components
Individual
Effectiveness
e.g., job
satisfaction,
personal
development
Outputs
Skill Variety
Task Identity
Autonomy
Task
Significance
Feedback
about Results
Comprehensive Model for Diagnosing Organization
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Organizational-Level
Diagnosis
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Organizational-Level Diagnosis
Culture
Technology
Human
Resources
Systems
Structure
Strategy
Organization
Effectiveness

General
Environment

Industry
Structure
Inputs
Design Components Outputs
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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.


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Five Forces of Industry Structure
Supplier
Power
Threats
of Entry
Buyer
Power
Threats of
Substitutes
Rivalry
among
Competitors
Industry
Structure
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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 organizations
mission, goals and objectives, strategic
intent, and functional policies.

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Mission
Why We
Exist

Vision
What We
Want to Be

Values
Whats
Important
to Us

Strategy :
Our Game
Plan


Strategy Map :
Translate the
Strategy into
Action

Strategy Formulation
Analysis of
General
Environment
and Industry
Structure
Analysis of
Organizations
Core
Competence
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Strategy :
Our Game
Plan



Strategy
Map :
Translate
the Strategy

Strategic
Outcomes
Satisfied
Shareholders
Delighted
Customers
Excellent
Processes
Motivated
Workforce
Strategy Formulation
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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.
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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.
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Elements of Corporate Culture Formation
Top
Management
View
Organization
System and
Policy
Industry
Characteristics
Organization
Structure
Profile of
Employees
Corporate Culture
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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.
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Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
HR
Systems
Business
Strategy
Business
Result
Human Resources Systems
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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.
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Organizational-Level Diagnosis
What is the companys general environment?
What is the companys industry structure?
What is the companys strategy?
What is the companys culture?
What are the companys structure, human
resources systems, and technology?
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Organizational-Level Diagnosis
Culture
Technology
Human
Resources
Systems
Structure
Strategy
General
Environment

Industry
Structure
Inputs
Design Components
Does the
organization
strategic
orientation fit
with the
inputs?
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Organizational-Level Diagnosis
Culture
Technology
Human
Resources
Systems
Structure
Strategy
Design Components
Do the design
components
fit with each
other?
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Group-Level Diagnosis
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Group
Functioning
Group-Level Diagnosis
Group
Norms
Group
Composition
Task
Structure
Goal
Clarity
Organization
Design
Team
Effectiveness
Inputs
Design Components Outputs
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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.


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Group Functioning is the
underlying basis of group life

Group Norms are member
beliefs about how the group
should perform task
Group Composition
concerns the membership of
groups
Task Structure is
concerned with how the
groups work is designed
Goal Clarity involves how
well the group understand
its objectives
Group Components
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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.
Goal Clarity
Goal
Clarity
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Task Structure is concerned with how
the groups work is designed.
Task structure can vary along two key
dimensions : coordination of members
effort and regulation of their task
behavior.
Task Structure
Task
Structure
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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 Functioning
Group
Functioning
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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 Composition
Group
Composition
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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 Norms
Group
Norms
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Group-Level Diagnosis
How clear are the groups goals?
What is the groups task structure?
What is the composition of the group?
What are the groups performance norm?
What is the nature of team functioning in the
group?
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Individual-Level
Diagnosis
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Task
Significance
Feedback
Autonomy
Task
Identity
Skill
Variety
Organization
Design

Group Design

Personal
Characteristics
(skill, knowledge
attitude)
Individual
Effectiveness
Individual-Level Diagnosis
Inputs
Design Components Outputs
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Organization
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.
Group
Design
Individual-Level Diagnosis
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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-Level Diagnosis
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Individual Jobs Dimensions
Five Key
Dimensions
Autonomy

Feedback About Results

Task Significance

Task Identity

Skill Variety

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Individual Jobs Dimensions
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
Task Significance
The degree to which a job has a
significant impact on other
peoples lives
Task Identity
The degree to which the job
requires completion of a
whole and identifiable piece
of work
Skill Variety
The degree to which the job
requires a variety of different
activities
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Job Characteristics Model - Hackman/Oldham
Core Job
Dimension
Skill Variety
Task Identity
Task Significance

Autonomy


Feedback

Psychological
States
Personal and
Work Outcomes
Experienced
meaningfulness of
the wok
Experienced
responsibility for
outcomes of the
work
Knowledge of the
actual results of
the work activities
High internal
work motivation
High-quality work
performance
High satisfaction
with the work
Low turnover
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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?
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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?
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Designing Effective
Intervention
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A set of sequenced planned actions
or events intended to help an
organization increase its
effectiveness.
Intervention
Intervention
Interventions purposely disrupt
status quo; they are deliberate
attempts to change an organization
or subunit toward a different and
more effective state.
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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
Effective Intervention
Two Major
Criteria to
Define an
Effective
Intervention
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Intervention Success Factors
Key Factors
that can affect
intervention
success
Readiness
for Change
Capability
to Change
Capability of
the Change
Agent
Cultural
Context
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Types of Intervention
Human Process
Intervention

Types of
Intervention

Structural
Intervention
Human Resource
Management Intervention
Strategic
Intervention
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Process
Consultation

Examples of
Human Process Intervention
Team Building


This intervention focuses on
interpersonal relations and social
dynamics occurring in work groups.
This intervention helps work groups
become more effective in
accomplishing task
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Structural Design


Examples of
Structural Intervention
Downsizing


This change process concerns the
organizations division of labor how to
specialize task performances.
This intervention reduces costs and
bureaucracy by decreasing size of the
organization
Reengineering


This intervention radically redesign the
organizations core work process to
create more responsive performance.
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Performance
Management

Examples of
Human Resources
Management Intervention
Career Planning &
Development

This intervention is a systematic
process to link between corporate goal
settings and reward systems.
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.
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Merger and
Acquisition

Examples of
Strategic Intervention
Cultural Change


This intervention is a systematic
process to integrate two or more
organizations.
This intervention helps organizations
develop cultures appropriate to their
strategies and environment.
Organizational
Learning

This intervention seeks to enhance an
organizations capability to acquire and
deploy new knowledge.
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Institutionalizing Interventions
Effective
Institutionalization
Process
Intervention
Enhance
Organization
Performance
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Factors Affecting Institutionalization Process
Organization
Characteristics:
Congruence
Stability
Unionization
Intervention
Characteristics:
Goal Specifity
Programmability
Level of Change Target
Internal Support
Sponsorship
Institutionalization
Process
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Organization
Characteristics:
Congruence
This is the degree to which an intervention is
perceived as being in harmony with the
organizations strategy, and structure; its
current environment; and other changes
taking place.
Stability of
Environment and
Technology
This involves the degree to which the
organizations environment and technology
are changing.
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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.
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Intervention
Characteristics:
Goal Specifity
This involves the extent to which intervention
goals are specific rather than broad.
Programmability
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.
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Intervention
Characteristics:
Level of
Change Target
This concerns the extent to which the change
target is the total organization, rather than a
department or small work group.
Internal
Support
This refers to the degree to which there is an
internal support system to guide the change
process.
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Intervention
Characteristics:
Sponsorship
This concerns the presence of a powerful
sponsor who can initiate, allocate, and
legitimize resources for the intervention.
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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
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End of Material