Chapter 5

The Diagnostic Process

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 Learning Objectives (part 1 of 2)
Identify system parameters.
Recognize symptoms, problems, and
causes of ineffectiveness.
Recognize techniques for gathering
information.

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 Learning Objectives (part 2 of 2)
Describe major diagnostic models and
techniques used in OD programs.
Apply systematic diagnosis to
organizational situations.

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 Figure 5.1
Stage 3 of ODs 5 Stages

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Diagnosing Problem Areas
(part 1 of 2)

Identification of areas for improvement.

Assess current performance and
desired level of quality.
Provides information that allows for
faster-reacting organization.

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 Diagnosing Problem Areas
(part 2 of 2)

Analyzes data on organizations:

Structure.
Administration.
Interaction.
Procedures.
Interfaces.
Other elements.

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 What is Diagnosis?
Systematic approach to understand
present state of organization.
Specifies nature of problem and causes.
Provides basis for selecting strategies.
Involves systematic analysis of data.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Critical Issues in Diagnosis
Simplicity. Primary factors.
Visibility. Measure whats
Involvement. important.
Sense of urgency.

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 The Process
Diagnosis is cyclical process involving:

Data gathering. Interpretation.

Identification of Potential action
problem areas. programs.

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 Steps in Diagnosis (part 1 of 2)
Step 1: Tentative problem identified.
Step 2: Collect data.
Step 3: Analyze data.
Step 4: Feedback data.
Step 5: More data needed?

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 Steps in Diagnosis (part 2 of 2)
Step 6: Problem areas identified.
Step 7: Is client motivated?
Step 8: Diagnosis and work on problem.
Step 9: Monitor and assess results.

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 Figure 5.2
The Diagnostic Process

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Performance Gap
Difference between what organization
could do and what organization is doing.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Figure 5.3
The Performance Gap

An Experiential Approach to Organization Development 8 th edition Chapter 5

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Self-Assessment Gap Analysis
of Four Key Areas
Organizations strengths.
What can be done to take advantage
of strengths.
Organizations weaknesses.
What can be done to alleviate
weaknesses.

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 Data-Collection Process
Data is an aggregation of:
Signs. Statistics.
Signals. Opinions.
Clues. Assumptions.
Facts.

Information is data that have form and

structure.
An Experiential Approach to Organization Development 8 th edition Chapter 5
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Data Collection Stages (part 1 of 4)
1. Definition of objectives.
2. Selection of factors.
3. Selection of data-gathering method.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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Data Collection Stages (part 2 of 4)
Stage 1: Definition of Objectives
Define objectives of change program.
Identify preliminary diagnosis and
further information required.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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Data Collection Stages (part 3 of 4)
Stage 2: Selection of Key Factors
Identify central variables.
May be necessary to increase range
and depth of data.

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Data Collection Stages (part 4 of 4)
Stage 3: Selection of Data-Gathering
Method
Selection of one or more methods.
Nature of the problem helps determine
method.
Variety of methods may be used.

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 Types of Data-Gathering
Methods (part 1 of 3)
1. Secondary sources.
Organization and industry data.
2. Employee surveys or questionnaires.
Useful with a large number of people.
Data may lack richness.

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 Types of Data-Gathering
Methods (part 2 of 3)
3. Sociogram.
Visual method of recording and analyzing
preferences in a group.
Each member represented by circle.
Communication represented by arrows
indicating direction of choice.

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 Figure 5.5
Example of Sociogram

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Types of Data-Gathering
Methods (part 3 of 3)
4. Direct observation.
Observing how people go about tasks.
5. Interviews.
Direct, personal, and flexible.
One of most widely used methods.
Directed interview.
Nondirected interview.
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 Implementation of
Data Collection
Decide from whom data will be
obtained.
Select appropriate technique.
Implement data-collection program.

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 Analysis of Data
Techniques used to analyze data.
Dictated by method used to gather data.
Type of analysis decided prior to data
collection.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Guidelines for Evaluating
Effectiveness of Data
Collection
Validity of data.
Time to collect data.
Cost of data collection.
Organization culture and norms.
Hawthorne effect in data collecting.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Diagnostic Models
Models may be used to:
Analyze structure, culture, and behavior of
organization.
Models play a critical role.
Provide conceptual framework to
understand organization.

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 Types of Diagnostic Models
Differentiation-integration model.
Sociotechnical systems.
Force-field analysis.

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 Differentiation-Integration
Model (part 1 of 3)
Stresses sound analytical diagnosis.
Used for interdepartmental issues.
Collects data on activities, interactions,
and norms.
Objective is to help departments
achieve integration.

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 Differentiation-Integration
Model (part 2 of 3)
Steps in implementation of model:
Begins with study of degree of
differentiation between units.
Then analyzes integration and cooperation
required between units.
Provides a basis for structural and
cultural changes in departments.

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 Differentiation-Integration
Model (part 3 of 3)
Examines work units using 4
characteristics of environment:
Degree of departmental structure.
Time orientation of members.
Interpersonal orientation of members
toward others.
Members orientation toward goals.

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 Table 5.1
Example of Survey Results Using the
Differentiation-and-Integration Model

An Experiential Approach to Organization Development 8 th edition Chapter 5

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Sociotechnical Systems Model
Two interrelated systems in
organization:
Social system.
Technical system.
The 2 systems are interrelated.
Diagnosis determines:
Interrelationships.
Type of feedback required between
subsystems.
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 Force-Field Analysis Model
(part 1 of 2)

Behavior balance between opposing

forces.
Restraining forces.
Act to keep organization stable.
Driving forces.
Act to change organization.

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 Force-Field Analysis Model
(part 2 of 2)

When forces equal, organization in

quasi-stationary state of equilibrium.
Analysis determines forces to increase
or decrease.

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Figure 5.6
Force-Field Analysis Model

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Figure 5.7
Example of the Use of Force-Field Analysis

An Experiential Approach to Organization Development 8 th edition Chapter 5

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 Warning Signs in Diagnosis
Confidentiality of data.
Over-diagnosis.
Crisis diagnosis.
Threatening and overwhelming
diagnosis.
Practitioners favorite diagnosis.
Diagnosis of symptoms, not problems.
An Experiential Approach to Organization Development 8 th edition Chapter 5
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 OD Application
Performance Gap at eBAY
eBays business model was:
Auction of merchandise on Internet.
Has no warehouses, does not take
possession of merchandise.
Revenue comes from listing fees,
advertising, and PayPal.
Revenue and profit down substantially.
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 eBay now gathers data to learn about
customers.
Data showed strategy of on-line
auctions obsolete.
Now focuses on fixed price sales of:
Collectables, overstocked items, and last
years models.
But business continues to fall short of
expectations.

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 OD Application
Data Collection and Diagnosis
at McDonalds
In 02 McDonalds identified a problem
based on earnings and profitability.
Lack of data on customers prevented
identifying problem.
In 03 adopted system to gather data
over long term.
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 Data obtained from:
Mystery diners who graded stores.
In-depth interviews with customers.
Data analysis showed solution:
Deliver better experience for customers.
Solution included better food and more
choices.
Coffee station part of solution:
Increase traffic at existing stores.
Bring in customers at non-dinner hours.
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 Key Words and Concepts
Clique.
In a sociogram, when 3 or more persons
select one another.
Closed questions.
Specific questions normally answered yes
or no.
Data.
Unstructured, unformed facts.
An Experiential Approach to Organization Development 8 th edition Chapter 5
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 Diagnosis.
Analysis of problem(s).
Diagnostic models.
Provide conceptual framework to
understand organization.
How well they function as a system.
Differentiation and integration model.
Diagnostic model that stresses analytical
diagnosis as basis for planned change.

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 Directed interview.
Interview in which specific information is
sought.
Driving forces.
Put pressure on organization to change.
Equilibrium.
Restraining and driving forces for change
being equal or in balance.

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 Force-field analysis model.
Weighs forces for and against change.
Hawthorne effect.
Act of observing may influence behavior of
those being investigated.
Information.
Data that has structure and form.
Isolates.
In a sociogram, individuals within group
who are chosen rarely by others.
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 Mutual choice.
In a sociogram, when individuals within
group choose one another.
Nondirected interview.
Interview direction is chosen by respondent.
One-way choice.
In a sociogram, when individual in group
chooses another but not chosen in return.

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 Open-ended questions.
Allows respondent to be unrestrained and
to direct interview.
Performance gap.
Difference between desired and actual
performance.
Questionnaires.
Method of gathering data.
Normally used for large number of
responses.

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 Restraining forces.
Forces that act to keep organization stable.
Sociogram.
Diagram of relationships and interactions
within group.
Sociometric approach.
Technique for collecting quantitative data
on work groups.
Result of approach is sociogram.

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 Sociotechnical systems model.
Determines how social and technological
systems interrelate.
Describes feedback between subsystems.
Stars.
Those highly chosen individuals in a
sociogram.
Surveys.
Method of gathering data normally used for
large number of responses.

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 OD Skills Simulation 5.1
The Acquisition Decision
Purpose.
To experience and observe how
information affects team decision making.
Will allow you to experience and observe:
How team members share task information.
How various problem-solving strategies
influence results.
How collaboration and competition affect team
problem solving.
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Preparations for Next Chapter
Read Chapter 6.
Prepare for OD Skills Simulation 6.1.
Complete Step 1.
Read the Company Situation.
Read and analyze Case: The
Hexadecimal Company.

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 An Experiential Approach to Organization Development 8 th edition Chapter 5
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