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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
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

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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.

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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

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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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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.

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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.

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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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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.

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Human Resources Systems


Recruitment &
Selection

Business
Strategy

Training &
Development

Performance
Management

Business
Result

HR
Systems

Reward
Management
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Career
Management
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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.

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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
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

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Organizational-Level Diagnosis
Design Components
Strategy

Do the design
components
fit with each
other?

Structure

Human
Resources
Systems

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Culture

Technology

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Group-Level Diagnosis

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Group-Level Diagnosis
Inputs

Design Components

Outputs

Goal
Clarity

Organization
Design

Task
Structure

Group
Composition

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Group
Functioning

Team
Effectiveness

Group
Norms

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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.

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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
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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.

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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.

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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.

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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.

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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.

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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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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

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Individual-Level Diagnosis
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.
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Individual-Level Diagnosis
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.

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Individual Jobs Dimensions


Skill Variety

Task Identity

Autonomy

Five Key
Dimensions
Task Significance

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Feedback About Results

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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
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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

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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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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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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

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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

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Types of Intervention
Human Process
Intervention
Structural
Intervention

Types of
Intervention

Human Resource
Management Intervention
Strategic
Intervention

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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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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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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.
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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.
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Institutionalizing Interventions
Intervention

Effective
Institutionalization
Process

Enhance
Organization
Performance

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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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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.

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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.

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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.
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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.

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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.

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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

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