Diagnosing Organizational Effectiveness

Diagnosing Organizational
Effectiveness
A Roadmap toward Corporate Sustainability
www.exploreHR.org
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?
DONT MESS
WITH IT
DID YOU MESS WITH IT?

NO
YES
NO
DOES ANYONE
KNOW?
YOU DUMB
*#@>!!
YES
HIDE IT
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
Environment
- Industry
Structure
B. GROUP LEVEL
Inputs
Structure
Culture
Technology
Human
Resources
Design Components
Goal Clarity
- Organization
Design
Task
Structure
Group
Functioning
Group
Composition
C. INDIVIDUAL LEVEL
Inputs
- Organization
Design
- Group Design
- Personal
Characteristics
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Group
Norms
Design Components
Skill Variety
Task Identity
Task
Significance
Organization
Effectiveness
Autonomy
Feedback
about Results
Outputs
Team
Effectiveness
e.g., quality of
work life,
performance
Outputs
Individual
Effectiveness
e.g., job
satisfaction,
personal
development
Organizational-Level
Diagnosis
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Organizational-Level Diagnosis
Inputs
Design Components
Outputs
Strategy
General
Environment
Structure
Culture
Organization
Effectiveness
Industry
Structure
Human
Resources
Systems
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Technology
General Environment
General
Environment
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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.
Five Forces of Industry Structure

Buyer
Power
Supplier
Power
Threats of
Substitutes
Industry
Structure
Threats
of Entry
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Rivalry
among
Competitors
10
Strategy
Strategy
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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.
11
Strategy Formulation
Mission
Why We
Exist
Vision
What We
Want to Be
Values
Whats
Important
to Us
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Analysis of
General
Environment
and Industry
Structure
Strategy :
Our Game
Plan
Analysis of
Organizations
Core
Competence
Strategy Map :
Translate the
Strategy into
Action
12
Strategy Formulation
Strategic
Outcomes
Satisfied
Shareholders
Strategy :
Our Game
Plan
Strategy
Map :
Translate
the Strategy
Delighted
Customers
Excellent
Processes
Motivated
Workforce
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13
Structure
Structure
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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.
14
Culture
Culture
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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.
15
Elements of Corporate Culture Formation
Organization
System and
Policy
Top
Management
View
Profile of
Employees
Industry
Characteristics
Organization
Structure
Corporate Culture
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16
Human Resources Systems

Human
Resources
Systems
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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.
17
Human Resources Systems

Recruitment &
Selection
Business
Strategy
Training &
Development
Performance
Management
Business
Result
HR
Systems
Reward
Management
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Career
Management
18
Technology
Technology
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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.
19
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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20
Inputs
Design Components
Strategy
General
Environment
Industry
Structure
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Does the
organization
strategic
orientation fit
with the
inputs?
Structure
Human
Resources
Systems
Culture
Technology
21
Design Components
Strategy
Do the design
components
fit with each
other?
Structure
Human
Resources
Systems
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Culture
Technology
22
Group-Level Diagnosis
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23
Inputs
Design Components
Outputs
Goal
Clarity
Organization
Design
Task
Structure
Group
Composition
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Group
Functioning
Team
Effectiveness
Group
Norms
24
Organization Design
Organization
Design
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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.
25
Group Components
Goal Clarity involves how
well the group understand
its objectives
Task Structure is
concerned with how the
groups work is designed
Group Composition
concerns the membership of
groups
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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
26
Goal Clarity
Goal
Clarity
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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.
27
Task Structure
Task
Structure
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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.
28
Group Functioning
Group
Functioning
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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.
29
Group Composition
Group
Composition
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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.
30
Group Norms
Group
Norms
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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.
31
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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32
Individual-Level
Diagnosis
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33
Individual-Level Diagnosis
Inputs
Design Components
Organization
Design
Skill
Variety
Group Design
Personal
Characteristics
(skill, knowledge
attitude)
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Task
Identity
Autonomy
Task
Significance
Outputs
Individual
Effectiveness
Feedback
34
Organization
Design
Group
Design
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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.
35
Personal
Characteristics
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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.
36
Individual Jobs Dimensions

Skill Variety
Task Identity
Autonomy
Five Key
Dimensions
Task Significance
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Feedback About Results
37
Individual Jobs Dimensions

Skill Variety
The degree to which the job
requires a variety of different
activities
Task Identity
The degree to which the job
requires completion of a
whole and identifiable piece
of work
Task Significance
The degree to which a job has a
significant impact on other
peoples lives
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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
38
Job Characteristics Model - Hackman/Oldham

Core Job
Dimension
Psychological
States
Skill Variety
Task Identity
Task Significance
Experienced
meaningfulness of
the wok
Autonomy
Experienced
responsibility for
outcomes of the
work
Feedback
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Knowledge of the
actual results of
the work activities
Personal and
Work Outcomes
High internal
work motivation
High-quality work
performance
High satisfaction
with the work
Low turnover
39
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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40
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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41
Designing Effective
Intervention
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42
Intervention
A set of sequenced planned actions

or events intended to help an
organization increase its
effectiveness.
Interventions purposely disrupt

status quo; they are deliberate
attempts to change an organization
or subunit toward a different and
more effective state.
Intervention
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43
Effective Intervention
Two Major
Criteria to
Define an
Effective
Intervention
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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
44
Intervention Success Factors
Key Factors
that can affect
intervention
success
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Readiness
for Change
Capability of
the Change
Agent
Capability
to Change
Cultural
Context
45
Types of Intervention
Human Process
Intervention
Structural
Intervention
Types of
Intervention
Human Resource
Management Intervention
Strategic
Intervention
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46
Examples of
Human Process Intervention
Process
Consultation
This intervention focuses on

interpersonal relations and social
dynamics occurring in work groups.
Team Building
This intervention helps work groups

become more effective in
accomplishing task
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47
Examples of
Structural Intervention
Structural Design
This change process concerns the

organizations 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

organizations core work process to
create more responsive performance.
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48
Examples of
Human Resources
Management Intervention
Performance
Management
This intervention is a systematic

process to link between corporate goal
settings and reward systems.
Career Planning &

Development
This intervention helps people choose

career paths and attain career
objectives.
Reward System
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This intervention involves the design of

organizational rewards to improve
employee satisfaction and performance.
49
Examples of
Strategic Intervention
Merger and
Acquisition
Cultural Change
Organizational
Learning
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This intervention is a systematic

process to integrate two or more
organizations.
This intervention helps organizations

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

organizations capability to acquire and
deploy new knowledge.
50
Institutionalizing Interventions
Intervention
Effective
Institutionalization
Process
Enhance
Organization
Performance
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51
Factors Affecting Institutionalization Process

Organization
Characteristics:
Congruence
Stability
Unionization
Institutionalization
Process
Intervention
Characteristics:
Goal Specifity
Programmability
Level of Change Target
Internal Support
Sponsorship
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52
Organization
Characteristics:
Congruence
Stability of
Environment and
Technology
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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.
This involves the degree to which the

organizations environment and technology
are changing.
53
Organization
Characteristics:
Unionization
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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.
54
Intervention
Characteristics:
Goal Specifity
Programmability
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This involves the extent to which intervention

goals are specific rather than broad.
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.
55
Intervention
Characteristics:
Level of
Change Target
Internal
Support
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This concerns the extent to which the change

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

internal support system to guide the change
process.
56
Intervention
Characteristics:
Sponsorship
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This concerns the presence of a powerful

sponsor who can initiate, allocate, and
legitimize resources for the intervention.
57
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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58
End of Material
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Diagnosing Organizational Effectiveness

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Diagnosing Organizational

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

Comprehensive Model for

Diagnosis is the process of understanding how the

It is also a collaborative process between organization

High Politics Organization:

DID YOU MESS WITH IT?

Comprehensive Model for Diagnosing Organization

The general environment represent the

It can be described in terms of amount of

Five Forces of Industry Structure

A strategy represent the way an

It can be described by the organizations

The structural system describes how

It represents the basic organizing mode

Organization culture represents the

It orients employees to company goals

Elements of Corporate Culture Formation

Human Resources Systems

Human resources systems include

HR systems influence the mix of skills,

Human Resources Systems

Technology is concerned with the way an

It represents the core of the

What is the companys general environment?

What is the companys strategy?

Organization design is the major input to

It consists of the design components

Group Functioning is the

Group Norms are member

Goal Clarity involves how well the group

In general, goals should be moderately

The goals should be clearly understood

Task Structure is concerned with how

Task structure can vary along two key

Group Functioning is the underlying

How members relate to each other is

Group composition concerns the

Members can differ on a number of

Demographic variables such as age

Group Norms are member beliefs about

Norms derive from interaction among

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

Organization design is concerned with

Group design concerns the larger group

Like organization design, group design is

Personal characteristics of individuals

Personal characteristics can affect job

Individual Jobs Dimensions

Feedback About Results

Individual Jobs Dimensions

Feedback About Results

Job Characteristics Model - Hackman/Oldham

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