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Organizational
diagnosis
. . . involves gathering,
analysing and interpreting
information about how the
organization is functioning.

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 © Getty Images/iStockphoto
Organizational
diagnosis
• Selecting a conceptual
model for diagnosis
• Clarifying information
requirements
• Gathering information
• Analysis
• Interpretation

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 © Getty Images/iStockphoto
The role of diagnostic
models
We simplify the real world
by developing models that
focus attention on
• A limited number of key
elements
• The way these elements
interact with each other
• The outputs produced by
these interactions.

© John Hayes (2018)

 © Getty Images/iStockphoto
The role of diagnostic
models

We use these models to

• Guide the kind of
information that we
attend to
• Interpret what we see
• Decide how to act.

© John Hayes (2018)

Selecting models for diagnosis

Component models look at particular

aspects of organizational functioning Strategy Leadership Organization
Culture

Technology Management
Practices Key
organizational
processes
Work unit
Strategy Leadership Structure
Organization climate
Staff
culture
Motivation
Technology Management Tasks and Skills
Practices Key individual
organizational roles Individual and
Work unit processes organizational
Structure performance
climate
Staff
Motivation
Tasks and
individual Skills
roles Individual and
organizational
performance

© John Hayes (2018)

The story of the six blind men encountering an elephant illustrates
one of the problems that can arise when using component models
for diagnosis.
Each one touched a different part of
the elephant’s body.
• The blind man who felt a leg said
the elephant was like a pillar;
• the one who felt its tail said it was
like a rope;
• the one who felt its trunk said it
was like the branch of a tree;
• the one who felt its ear said it was
like a fan;
• the one who walked into its belly
said it was like a wall;
• the one who felt its sharp tusk said
it was like a spear.
Only looking at specific components may not give a good impression of what the
whole is really like.

© John Hayes (2018)

Component models

One way of overcoming Leadership Organization

Strategy
this problem is to examine culture

each component in detail

Management Key
. . . and combine the Practices organizational
processes
assessments to create a
Technology
‘big picture’ of how the Structure

organization is functioning Work unit

climate
as a whole. Tasks and
individual
roles Staff

Motivation Skills

© John Hayes (2018)

 Holistic models

Leadership
An alternative approach is to start by
looking at the “big picture” before drilling Key
down to explore particular components Management organizational
processes
Practices
Strategy
in more detail.

Technology
Organization
Structure culture

Tasks and Work unit

individual Staff climate
roles

Motivation Skills

© John Hayes (2018)

 Holistic models

This holistic approach can be

Leadership
more effective because it
Key
draws attention to the nature Management organizational
Practices processes
of the interactions between Strategy

the component parts. Technology

Organization
Structure culture

Tasks and Work unit

individual Staff climate
roles

Motivation Skills

© John Hayes (2018)

Organizations are open systems
The picture frame and jar lids analogy
Open systems theory
predicts that changes to
any one of the elements
of an organization’s
system will cause
changes to the other
elements.

• Jar lids connected by rubber bands

• Impossible to move one lid without disturbing others

© John Hayes (2018)

Kotter's integrative model of organisational
dynamics
It comprises six structural elements:
1. External environment
2. Employees & other tangible assets
3. Formal organisational arrangements
4. Social system
5. Technology
6. Dominant coalition
And a set of key organizational processes relating to:
• Transportation/conversion of energy and or matter
• Information gathering, communication and decision making
A distinguishing feature of Kotter’s model is that it highlights which
aspects of organizational functioning impact effectiveness over the
short, medium and long term.

© John Hayes (2018)

 Organizational effectiveness in the short term

Over the short term, effective organizations are those that

have key processes that are characterised by levels of decision
making effectiveness and matter-energy efficiency that help to
ensure that resources are used efficiently.

Processes

© John Hayes (2018)

 Alignment and organizational effectiveness
over the medium term
Over the medium term, effectiveness is determined by the
state of alignment (quality of fit) between the structural
elements.

Examples of poor fit:

• Dominant coalition and task environment
• Employees and technology
• Employees and formal organisation

© John Hayes (2018)

 Adaptability and organizational effectiveness
over the long term
Over the long term, effectiveness is determined by an
organization’s ability to adapt in ways that will maintain
internal and external alignment.

This adaptability is a function of the state of an organisation’s structural

elements.
These can range from highly constraining to very unconstraining.
For example, an organization that has a single complex technology that is
difficult to adapt (so change will require a massive capital investment in
new technology) is more constrained than an organisation that has a
technology that can be used in different ways to produce a variety of
goods and services and which can be modified incrementally over time.

© John Hayes (2018)

 © Getty Images/iStockphoto
Diagnosing external
alignment
Some diagnostic
models focus on
the quality of an
organization’s
alignment with
the external
environment.

© John Hayes (2018)

 Diagnosing external alignment: SWOT
SWOT is a diagnostic model for assessing external alignment
and identifying what needs to be changed to improve
organizational effectiveness.

Weakness
Strengths
es

Opportuni
ties
Threats

© John Hayes (2018)

 Diagnosing external alignment
Internal factors

Strengths Ways to exploit Weaknesses Ways to reduce

1 1 1
1
2 2 2
2
3 3
3 3
4 4
4 4

External factors

Opportunities Ways to exploit Threats Ways to reduce

1 1 1 1
2 2 2 2
3 3 3
3
4 4 4
4

© John Hayes (2018)

 © Getty Images/iStockphoto
Diagnosing internal
alignment
Some diagnostic
models focus primarily
on the quality of an
organization’s internal
alignment.

© John Hayes (2018)

 The Mckinsey 7S model
The model highlights seven interrelated elements that, when
aligned, make an important contribution to organizational
effectiveness.
The seven elements are:
S1: Strategy
S2: Structure
S3: Systems
S4: Staff
S5: Style
S6: Skills
S7: Shared values and superordinate goals

© John Hayes (2018)

Using the 7S model to clarify information
requirements
Change managers can use the model to identify the information
they need for diagnosis. For example:

• When investigating the organization’s

strategy, they might collect data about how

©Getty Images/istockphoto
the organization go about matching its
resources with opportunities, and creating a
competitive advantage.

• When investigating the organization’s structure,

they might collect data about the formal and
informal arrangements for grouping and
coordinating activities.

© John Hayes (2018)

Interpretion
Change managers can use the McKinsey 7S model to assess the degree of
alignment between the seven elements.
S1 S2 S3 S4 S5 S6 S7
Strategy/ Strategy/ Strategy/ Strategy/ Strategy/ Strategy/
Describe structure systems staff style skills alignment values
S1 alignment alignment alignment alignment alignment

Structure/ Structure/ Structure/ Structure/ Structure/

Describe systems staff style skills values
S2 alignment alignment alignment alignment alignment

Systems/staff Systems/style Systems/ Systems/

Describe alignment alignment skills values
S1: Strategy S3 alignment alignment

S2: Structure Describe

Staff/style
alignment
Staff/skills
alignment
Staff/values
alignment
S4
S3: Systems Style/skills Style/values
Describe
S4: Staff S5
alignment alignment

S5: Style Describe

Values/values
alignment
S6
S6: Skills
S7: Shared values and superordinate goals Describe
S7

© John Hayes (2018)

 Source: Getty Images/iStockphoto
Diagnosing internal &
external alignment

Some diagnostic
models are more
comprehensive and pay
attention to both
internal and external
alignment.

© John Hayes (2018)

The Burke-Litwin causal model of organisational
performance and change Examples of inputs:
Labour, raw materials, finance, laws and regulation

• Internal and external alignment Mission & strategy

Elements associated with Leadership
• Relative weight of elements the total system Organization culture

• Causal relationships

Structures
Elements of the organization Elements associated with Management practices
local units Systems
associated with transforming inputs Work unit climate
into outputs

Motivation
Individual needs &
Individual level elements values
Job-person fit

Examples of outputs:
Employee satisfaction, customer satisfaction,
shareholder satisfaction, compliance
© John Hayes (2018)
Klofsten’s business platform model
Useful when diagnosing what needs to
be done to secure the survival of a new The business
venture or to diagnose why a new idea
Good
business is not thriving. The
relations
product
with others
(bankers, suppliers)
Klofsten asserts that an
essential prerequisite for
success is that a business The
Customer
market
reaches at least a minimum relations
level of competence in all eight
“cornerstones”.
©Getty Images/Vetta \ Clerkenwel
Core The
Group organization
motivation Core
Group
expertise

© John Hayes (2018)

 Source: Getty Images/iStockphoto
Life cycle models

Life cycle models posit

that organizations
progress through a series
of predictable stages of
development and that
each stage brings with it
a set of alignment
related issues that have
to be managed.

© John Hayes (2018)

 Life cycle models
Greiner’s model is a good example of a life cycle model and is considered
in the chapter on recognizing the need for change

Organizations evolve through five predictable stages of development

and each stage brings with it a set of alignment-related issues that
have to be managed if the organization is to be effective.

Growth through CREATIVITY leads to a Crisis of leadership

Growth through DIRECTION leads to a Crisis of autonomy
Growth through DELEGATION leads to a Crisis of control
Growth through COORDINATION leads to a Crisis of red tape
Growth through COLLABORATION leads to And so on . . .

© John Hayes (2018)

 Source: Getty Images/iStockphoto
Selecting a model for
diagnosis
1. Relevant to issues under
consideration
2. Identify elements and cause
and effect relationships that
contribute to the problem or
opportunity
3. Indicate which of the above
have most weight
4. Highlight aspects of
organizational functioning
that the change agent can
do something about

© John Hayes (2018)

 Summary
• This tutorial has considered the attributes of holistic (as opposed to
component) models of organisation functioning.

• It was noted that while component models are useful for

diagnosing specific problems, combining their assessments of
different aspects of organisation functioning will not always provide
an adequate view of the factors that are affecting organisation
effectiveness.

• Open systems models are seen to provide a useful over-arching

conceptual framework for assessing how the total system functions.

• A number of different holistic models have been considered.

© John Hayes (2018)