Organizational
Diagnosis
Module 3 Certificate in
Organization Development
San Beda College, Alabang
Agenda for this module
OD Diagnosis
What does it mean: Diagnosis is Treatment?
What are the mechanisms involved in deriving Diagnosis?
What is the value/utility of a Diagnosis?
Consider the models: McKinsey 7S, Weisbord 6-box, etc what
do they have in common?
What is Systems Theory & how is it used?
Team Task: Analyze and draw a systems model of an
organizational problem showing mechanisms & possible
intervention points
Organizational Diagnosis
1. Think of visiting your doctor, computer or auto
mechanic professional. What is a diagnosis?
2. What does he or she do to diagnose your
condition?
3. What are the uses/purposes of diagnosis; What
does it allow you to do?
4. What, therefore, are the criteria for a sound
diagnosis?
5. How is diagnosis derived?
The Diagnostic Process
Level 4: diagnostic label
e.g., transition adjustment reaction with emphasis on role
diffusion
Level 3: conceptual description (the explanation)
e.g., during organizational transition, stakeholder roles have become
diffused, resulting in role overload, role conflict, and role boundary
disputes. These in turn have led to increased anxiety about the future and
lowered productivity and worse turnover has
increased
Level 2: concepts & constructs
e.g., conflict, leadership, norms, roles, communication
channels, decision style, etc.
Level 1: raw data
e.g., observations, statements, survey, archived data, etc.
Sample Application The
Diagnostic Process
Level 1: Raw data. Number of enrollees
decreasing
Level 2: Concepts: Perceived quality of
education is not value for money
Level 3: Conceptual description: There appears
to be gap between the actual experiences of
students and parents versus expectations in the
delivery of education services.
Level 4: Diagnostic label: Expectations between
enrollees and school were not matched.
Raw Data
Level 1: Raw data. Increasing TO of technical people
(Rachel)
Level 2: Concepts: The other side of the fence is greener; 3
out of 12 are leaving for greener pasture or 25% of
incumbents; employees expect management will not match
new salary offers.
Level 3: Conceptual description: Three out of 12 technical
people are leaving the company because management is
not able to match new salary offers and this departure
impacts on keeping critical talents and critical roles.
Level 4: Diagnostic Label: Organization loses critical talents
in critical roles at this time and there seems to be no
response from the organization.
Diagnosis is Treatment
1. Acknowledgement of organization as a total system
e.g. Open
system theory (inputs-throughputs-outputs connected with dots)
2. Data collection motivates org members to learn & participate
in the change process
3. Facilitation of admission that actual problem exists by top
management
4. Exploration of other data collection techniques to rule out
presenting problems & search for underlying problems
5. Results of data collection are fed back to the org members
within org to begin the process of org change
6. Focus activities and processes within the system that is
considered to be vital to organizational life
1.
Narrow and symptomatic quick fixes
2.
Broad
Weisbord 6-Box Model
(1976)
Force-Field Analysis
Force Field Analysis by Kurt
Lewin (1951)
Current
of
Driving State
Affairs
Forces(Problem)
Restraining
Forces
Equilibrium
Interrupted
Disequilibrium
During Change
Desired
State of
Affairs
(Goal)
Equilibrium
Reestablished
Leavitts Model (1965)
Structure
Task/ Purpose
Technology
People/ Actors
Likert System Analysis (1967)
System 4: Participative Group
System 3: Consultative
System 2: Benevolent-Authoritative
System 1 : Exploitative-Authoritative
Nelson & Burns (1984)
System 4: The HP Org
System 3: The Proactive Org
System 2: The Responsive Org
System 1 : The Reactive Organization
Baker (1996)
System 4: The Collaborative Org
System 3: The Consultative Org
System 2: The Competitive Org
System 1 : The Coercive Org
Open Systems Theory (Katz &
Kahn, 1978)
Environment
Input
Transformation
Output
The 7-S McKinsey model (Tom Peters & Robert Waterman
1982)
7S
Strategy The plan devised to maintain and build
competitive advantage over competition
Structure The way the organization is structured
and who reports to whom
Systems- The daily activities and procedures that
staff members engage in to get the job done
Shared Values (Superordinate goals) Core values
of the company that are evidenced in the corporate
culture and the general work ethic
Style The style of leadership adopted
Staff The employees and their general capabilities
Skills The actual skills and competencies of the
employees working for the company
Tichys Technical, Political,
Cultural (TPC) Model ( 1983)
Technical
Political
Or
Strategic
Cultural
Organization
Organization as Strategic
Design
Key Concepts: Formal structures (the boxes),
systems e.g. IT, Accounting, Incentives etc
Key Processes: Grouping (differentiation), Linking
(integration)
View of the Environment: Opportunities & Threats,
resources
Role of the Manager: Org Architect, strategist
Stimuli for change: Lack of internal congruence,
lack of fit between organization and strategy.
Between org and environment
Barriers to Change: Inadequate analysis or
information
Grouping & Linking
Grouping
By activity e.g. functional
By Output by service or product (BU)
By market user, customer, geography
Linking
Reporting structure
Information systems
Planning systems
Managerial roles liaison, integrator
Cross unit groups informal/ temporary groups (councils,
steering committees)
Shared socialization processes cultivation of informal
information networks
Summary Points:
Strategic Design
Need
Environment, strategy, structure
Need
for fit
for linking
Integration Structures
Structures
Necessary
Integration only occurs when integrating
processes work well
Structures create interests, power, identities
analyzing these require political & cultural lenses
Tichys Technical, Political,
Cultural (TPC) Model ( 1983)
Technical
Political
Or
Strategic
Cultural
Organization
Organization as a Political
System
Key Variables: Power and influence, interests, dominant coalition
Key Processes: Conflict, negotiation
View of the Organization: Stakeholders
Role of the Manager: Forging coalitions, identifying and
leveraging interests, negotiating
Stimuli for Change: Shifts in dominant coalition, in power of
stakeholders
Obstacles to Change: Entrenched Interests
The New Organization &
Sources of Conflict
Flat
Responsibility exceeds authority
Flexible
Change means dealing with resistance
Networked
Cross functional collaboration means conflict at
site of decision making
Diverse/
Global
Challenges of working across differences
Analyzing Interests
Substantive
Costs, resources, quality, time
Organizational
Protect function, promote career, look good, save
face
Relational
Maintain relationships, short v long term
Individual
Commitment to work, personal life, the community
Source of Power
Formal authority: Power of position
Control of scarce resources: Access to resources (funds, skills,
knowledge) that others depend on e.g.
Information is power so hold on to it
Information sharing promotes learning; filling structural holes
(linking 2 groups who need info) enhances power
Control of decision making: Influence over premises, processes,
objectives, outcomes
Ability to cope with uncertainty: Environmental (financial,
markets, raw materials) & operational (breakdowns)
Alliance/ network: Ability to call on powerful others
Symbolism & management of meaning: Ability to define reality
for others; style/ charisma
Forms of Negotiations/Change
Negotiations
Forcing: Domination, the use of power and
position; hard bargaining; position based
Fostering: PS, working toward integrative
outcomes, Interest based
Smoothing/ Avoidance: Gloss over differences,
play down disagreements, let problems pass,
avoid the other
Compromise: (split the difference), problem
solving (work for an integrative outcome)
Conflict Management
Manager as arbitrator
Manager as mediator
Helps others resolve their differences voluntarily
Manager as facilitator
Makes decisions when others cant agree
Assists others in addressing their underlying interests
Manager as negotiator
Represents interest of his/her group/unit/ organization
Summary Points:
Political Perspective
Politics usually lie under the surface
Managing politics requires legitimizing differences
To analyze and manage ask:
Who are the stakeholders?
What their interests?
Who has the power?
How can power be changed: allies and blockers?
What options are possible for achieving interests?
What happens if interests are not met?
Manager must be skilled negotiator and conflict
resolver
Tichys Technical, Political,
Cultural (TPC) Model ( 1983)
Technical
Political
Or
Strategic
Cultural
Organization
Organization as Cultural/Social
System
Key variables: Shared mental maps, org culture
(artifacts, values, basic assumptions)
Key processes: Meaning and interpretation,
legitimation, rhetoric, vision
View of the environment: Social and cultural
network
Role of the manager: Articulating vision,
managing the culture
Stimuli for change: Challenges to basic
assumption, contending interpretations
Impediments for change: Dominant culture
Culture Defined
Shared understandings a given group has developed to deal with
the problems of external adaptation and internal integration.
Historical: Passed across generations
Moral force: Normative not utilitarian
Associated with stability of a group
The way we do things around here
Differentiating/identify device: Relative to other groups
Associated with the intensity of common problems faced by
members
Changes across time (usually small) related to the degree the
internal and external environment shift
What is Organizational Culture
Visible artifacts
Stated values
Underlying assumptions
Visible org structures and
processes
Strategies, goals, philosophies
(Espoused justification)
Unconscious, taken for
granted beliefs, habits of
perception, thought, and
feelings (ultimate source of
values and action)
Case Study
Divide
into 3 groups according to the
perspective you want to work on
Meet and discuss what data, info you will look
for to answer two questions:
What is the problem here?
What actions would you recommend?
First Case TeaM E: Cultural
Perspective - Background
Employees
are used to being pampered by
the previous management. When the new
management came in, employees became
more resistant and sensitive to change.
Problem
Management cannot solve the issue
concerning the attitude of the employees
due to existing coalition.
Recommended solutions
1.
2.
3.
Reorientation of new policy and
management direction.
Open communication and transparency of
purpose and reason for the different
changes of the new management direction.
Establish a tie or stronger relationship with
the different department coalitions.
2nd Case - 4M Group of
Companies Strategic Design
Current Situation: there are 18 companies under the
4M group of companies. Each company, with their
own presidents, reports to one chairperson.
Support functions (eg HR, IT, Finance, Security) are
centralized.
In a period of 6 months, 4M plans to divide the 18
companies among the 4 daughters. They will each
become a chairperson. Support functions will be
decentralized.
Smaller companies will be acquired by stronger
companies within the same industry.
Problem
How
will management of each company
address the decentralization of the support
systems considering structural and people
issues?
Recommended solutions
Develop
a strong communication plan to
address or manage the apprehension and
fear
Formulate a clear Organizational Structure
for each company.
Determine positions that will be declared
redundant
Determine/ clarify if each group will retain or
develop their own policies and procedures
Eg. HR policies
Burke-Litwin Model of
Organizational Performance
and Change ( 1992)
What are the key
areas?
How are they
connected?
SWOT Model
Environmental
Opportunities
Threats
Institutional
Analysis
Analysis
Strengths
Weaknesses
Opportunity
External
condition that gives an organization
a change to improve its effectiveness and
efficiency
Threat
An
external condition that places an
organization at a disadvantaged position or
undermines its effectiveness and efficiency or
its ability to survive.
Strengths
A
characteristic or asset of the organization
that enhances its capacities to achieve its
goals and objectives.
Weaknesses
A
characteristic or asset of the organization
that undermines its capacity to reach its goals
and objectives.
Matrix AnalysisEnvironmental Analysis
Categories
Political
Economic
Social
Technological
Geographical
Community
relations
Informal Sector
Network
Opportunities
Threats
Matrix Analysis Institutional Analysis
Categories
Organizational
role and profile
Programs and
services
Resources and
capabilities
Management
systems
External links
Strengths
Weaknesses
What
influences
it?
What
influences
it?
Diagnosis/Treatment considerations:
identify the key problem
identify linkages
trace multiple linkages
identify barriers to solution
explore removing barriers
The
Problem
What
influences
it?
What
influences
it?
What prevents
it from being
solved?
What
influences
it?
Problems with OD Diagnosis There aint
none!
1. There are no widely used, standard, or
conventional diagnostic systems in OD
2. There is no standard diagnostic nomenclature
3. There are no standard tools for assessment
4. Some labels are so poorly defined as to be
meaningless
5. There is no clear relationship between Diagnosis and
Treatment
6. Most interventions are not standardized
7. There are very few studies on Treatment outcomes
8. They usually focus on what is going wrong rather than what
is going right (e.g., solution focus, problem solving,
teambuilding, etc.)
Instrumented Feedback Diagnosis is treatment
Complete the initial OD stages of scouting, contracting, etc.
Identify the areas of primary focus: key result areas, mission
critical, etc.
Gather information (survey, hard data, perceptions,
judgments, etc.)
Organize and present information to stakeholders
Explore interpretations what do these reflect? What do you
think it means?
Action what do you want to do about it?
Team Diagnostic Activity
Group into 3 teams. Identify and discuss the case.
Identify the problem
Use one of the diagnostic models to identify key
areas
Discuss the relationships among key areas
relevant to the problem
What is it about the structure/processes that
enables the problem to arise and maintain it?
Where are the intervention points implied by this
conceptualization?
What would you do if you could?
