The document provides information on diagnosing organizational effectiveness at different levels - organizational, group, and individual. At the organizational level, it discusses assessing an organization's strategy, structure, culture, human resources systems, technology, general environment, and industry structure. At the group level, it focuses on goals, task structure, composition, norms, and functioning. At the individual level, it examines job design dimensions like autonomy, feedback, and skill variety. The document also outlines designing effective interventions, including types like team building, downsizing, and cultural change, as well as factors that influence institutionalizing changes.

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Diagnosing OrganizationalDiagnosing Organizational
EffectivenessEffectiveness
A Roadmap toward Corporate SustainabilityA Roadmap toward Corporate Sustainability

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ContentsContents
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 forComprehensive Model for
Diagnosing Organizational SystemsDiagnosing Organizational Systems

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What is Diagnosis?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:High Politics Organization:
Common Approach to Business ProblemsCommon Approach to Business Problems
DOES THE THING WORK?
DON’T 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 OrganizationComprehensive Model for Diagnosing Organization

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Organizational-LevelOrganizational-Level
DiagnosisDiagnosis

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Organizational-Level DiagnosisOrganizational-Level Diagnosis
Culture
TechnologyHuman
Resources
Systems
Structure
Strategy
Organization
Effectiveness
General
Environment
Industry
Structure
Inputs Design Components Outputs

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General EnvironmentGeneral Environment
GeneralGeneral
EnvironmentEnvironment
• 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 StructureFive Forces of Industry Structure
SupplierSupplier
PowerPower
ThreatsThreats
of Entryof Entry
BuyerBuyer
PowerPower
Threats ofThreats of
SubstitutesSubstitutes
RivalryRivalry
amongamong
CompetitorsCompetitors
IndustryIndustry
StructureStructure

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StrategyStrategy
StrategyStrategy
• 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.

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Mission –
Why We
Exist
Vision –
What We
Want to Be
Values –
What’s
Important
to Us
Strategy :
Our Game
Plan
Strategy Map :
Translate the
Strategy into
Action
Strategy FormulationStrategy Formulation
Analysis of
General
Environment
and Industry
Structure
Analysis of
Organization’s
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 FormulationStrategy Formulation

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StructureStructure
StructureStructure
• 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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CultureCulture
CultureCulture
• 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 FormationElements of Corporate Culture Formation
Top
Management
View
Organization
System and
Policy
Industry
Characteristics
Organization
Structure
Profile of
Employees
Corporate CultureCorporate Culture

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Human Resources SystemsHuman Resources Systems
HumanHuman
ResourcesResources
SystemsSystems
• 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
BusinessBusiness
StrategyStrategy
BusinessBusiness
ResultResult
Human Resources SystemsHuman Resources Systems

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TechnologyTechnology
TechnologyTechnology
• 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 DiagnosisOrganizational-Level Diagnosis
• 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?

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Organizational-Level DiagnosisOrganizational-Level Diagnosis
Culture
TechnologyHuman
Resources
Systems
Structure
Strategy
General
Environment
Industry
Structure
InputsInputs Design ComponentsDesign Components
Does theDoes the
organizationorganization
strategicstrategic
orientation fitorientation fit
with thewith the
inputs?inputs?

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Organizational-Level DiagnosisOrganizational-Level Diagnosis
Culture
TechnologyHuman
Resources
Systems
Structure
Strategy
Design ComponentsDesign Components
Do the designDo the design
componentscomponents
fit with eachfit with each
other?other?

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Group-Level DiagnosisGroup-Level Diagnosis

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Group
Functioning
Group-Level DiagnosisGroup-Level Diagnosis
Group
Norms
Group
Composition
Task
Structure
Goal
Clarity
Organization
Design
Team
Effectiveness
InputsInputs Design ComponentsDesign Components OutputsOutputs

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Organization DesignOrganization 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
group’s work is designed
Goal Clarity involves how
well the group understand its
objectives
Group ComponentsGroup 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 ClarityGoal Clarity
Goal
Clarity

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• Task Structure is concerned with how
the group’s work is designed.
• Task structure can vary along two key
dimensions : coordination of members’
effort and regulation of their task
behavior.
Task StructureTask 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 FunctioningGroup 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 CompositionGroup 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 NormsGroup Norms
Group
Norms

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Group-Level DiagnosisGroup-Level Diagnosis
• 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?

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Individual-LevelIndividual-Level
DiagnosisDiagnosis

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Task
Significance
FeedbackAutonomy
Task
Identity
Skill
Variety
Organization
Design
Group Design
Personal
Characteristics
(skill, knowledge
attitude)
Individual
Effectiveness
Individual-Level DiagnosisIndividual-Level Diagnosis
InputsInputs Design ComponentsDesign Components OutputsOutputs

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OrganizationOrganization
DesignDesign
• 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.
GroupGroup
DesignDesign
Individual-Level DiagnosisIndividual-Level Diagnosis

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PersonalPersonal
CharacteristicsCharacteristics
• 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 DiagnosisIndividual-Level Diagnosis

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Individual Jobs DimensionsIndividual Jobs Dimensions
Five KeyFive Key
DimensionsDimensions
Autonomy
Feedback About ResultsTask Significance
Task Identity
Skill Variety

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Individual Jobs DimensionsIndividual 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
people’s 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/OldhamJob 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 DiagnosisIndividual-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 DiagnosisIndividual-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 EffectiveDesigning Effective
InterventionIntervention

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• A set of sequenced planned actions
or events intended to help an
organization increase its
effectiveness.
InterventionIntervention
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 InterventionEffective Intervention
Two Major
Criteria to
Define an
Effective
Intervention

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Intervention Success FactorsIntervention 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 InterventionTypes of Intervention
Human Process
Intervention
Types ofTypes of
InterventionIntervention
Structural
Intervention
Human Resource
Management Intervention
Strategic
Intervention

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ProcessProcess
ConsultationConsultation
Examples of
Human Process Intervention
Team BuildingTeam 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 DesignStructural Design
Examples of
Structural Intervention
DownsizingDownsizing
This change process concerns the
organization’s division of labor – how to
specialize task performances.
This intervention reduces costs and
bureaucracy by decreasing size of the
organization
ReengineeringReengineering This intervention radically redesign the
organization’s core work process to
create more responsive performance.

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PerformancePerformance
ManagementManagement
Examples of
Human Resources
Management Intervention
Career Planning &Career Planning &
DevelopmentDevelopment
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 SystemReward System This intervention involves the design of
organizational rewards to improve
employee satisfaction and performance.

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Merger andMerger and
AcquisitionAcquisition
Examples of
Strategic Intervention
Cultural ChangeCultural 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.
OrganizationalOrganizational
LearningLearning
This intervention seeks to enhance an
organization’s capability to acquire and
deploy new knowledge.

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Institutionalizing InterventionsInstitutionalizing Interventions
Effective
Institutionalization
Process
Intervention
Enhance
Organization
Performance

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Factors Affecting Institutionalization ProcessFactors 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
organization’s strategy, and structure; its
current environment; and other changes
taking place.
Stability of
Environment and
Technology
This involves the degree to which the
organization’s 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 ReadingsRecommended 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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