Diagnosing Organizational Capability to Change-

Strategy, Structure, Systems and People

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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
DID YOU MESS WITH IT?
WITH IT
NO
YES

NO DOES ANYONE YOU DUMB

KNOW? *#@>!!

HIDE IT YES 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 Organization
Environment Structure Culture
Effectiveness
- Industry
Structure Technology
Human
Resources

B. GROUP LEVEL
Inputs Design Components Outputs
Goal Clarity
Team
Task Group Effectiveness
- Organization Structure Functioning
Design e.g., quality of
Group Group work life,
Composition Norms performance

C. INDIVIDUAL LEVEL
Inputs Design Components Outputs
Skill Variety Individual
- Organization Effectiveness
Design Task Identity Autonomy
e.g., job
- Group Design
satisfaction,
- Personal
Characteristics Task Feedback personal
Significance about Results development
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 Organizational-Level Diagnosis

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 Organizational-Level Diagnosis

Inputs Design Components Outputs

Strategy

General
Environment Structure Culture Organization
Effectiveness
Industry
Structure

Human Technology
Resources
Systems

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 General Environment

General The general environment represent the

Environment 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

Buyer
Power

Supplier Threats of
Power Substitutes
Industry
Structure
Rivalry among
Threats Competitors
of Entry

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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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 Strategy Formulation
Analysis of
General
Mission Environment
Why We and Industry
Exist Structure

Vision Strategy Map :

What We Strategy :
Translate the
Want to Be Our Game
Strategy into
Plan
Action
Values
Whats Analysis of
Important Organizations
to Us Core
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 Strategy Formulation

Strategic
Outcomes
Satisfied
Shareholders

Strategy : Strategy Delighted

Our Game Map : Customers
Plan Translate Excellent
the Strategy Processes
Motivated
Workforce
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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

Organization Top Industry

System and Management Characteristics
Policy View

Profile of Organization
Employees Structure

Corporate Culture
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 Human Resources Systems

Human Human resources systems include

Resources mechanism for selecting, developing,
Systems 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

Training & Performance

Business Development Management Business
Strategy Result

HR
Systems

Reward Career
Management Management

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 Technology

Technology is concerned with the way an

Technology
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
Does the
General
Environment organization
Structure Culture
strategic
Industry orientation fit
Structure
with the inputs?

Human Technology
Resources
Systems

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 Organizational-Level Diagnosis

Design Components

Strategy

Do the design
Structure Culture
components fit
with each
other?

Human Technology
Resources
Systems

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 Group-Level Diagnosis

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 Group-Level Diagnosis

Inputs Design Components Outputs

Goal
Clarity

Organization Task Group Team

Structure Functioning
Design Effectiveness

Group Group
Composition Norms

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 Organization Design

Organization Organization design is the major input to

Design 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 Group Functioning is the

concerned with how the underlying basis of group life
groups work is designed

Group Composition Group Norms are member

concerns the membership of beliefs about how the group
groups should perform task

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 Goal Clarity

Goal Clarity involves how well the group

Goal
understands its objectives.
Clarity
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 is concerned with how

Task
the groups work is designed.
Structure
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 Group Functioning is the underlying

Functioning 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 Group composition concerns the

Composition 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 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 Outputs

Organization Skill
Variety
Design

Group Design Task Task Individual

Identity Significance
Effectiveness
Personal
Characteristics
(skill, knowledge Autonomy Feedback
attitude)

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 Individual-Level Diagnosis

Organization Organization design is concerned with

Design the larger organization within which the
individual job is the smallest unit.

Group Group design concerns the larger group

Design 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 Personal characteristics of individuals

Characteristics 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 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 Autonomy

The degree to which the job The degree to which a job
requires completion of a provides freedom and discretion
whole and identifiable piece in scheduling the work and
of work determining work methods.

Task Significance Feedback About Results

The degree to which a job has a The degree to which a job provides
significant impact on other employee with direct and clear
peoples lives information about the effectiveness of
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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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