Diagnosing Organizational Effectiveness

Diagnosing Organizational Effectiveness
A Roadmap toward Corporate Sustainability
www.exploreHR.org 1
You can download full version of
these excellent slides at :
You can download this brilliant presentation at:
www.HR-Management-Slides.com
www.exploreHR.org
www.exploreHR.org 2
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?
DON’T 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
Structure Culture Organization
Environment
Effectiveness
- Industry
Structure Human Technology
Resources
B. GROUP LEVEL
Goal Clarity
Team
Task Group
- Organization Structure Effectiveness
Functioning
Design e.g., quality of
Group Group work life,
Composition Norms performance
C. INDIVIDUAL LEVEL
Skill Variety Individual
- Organization Effectiveness
Design Task Identity Autonomy
e.g., job
- Group Design
- Personal satisfaction,
Characteristics Task Feedback personal
Significance about Results development
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Organizational-Level
Diagnosis
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Organizational-Level Diagnosis
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
Threats among
of Entry Competitors
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 organization’s
mission, goals and objectives, strategic
intent, and functional policies.
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 –
What’s Analysis of
Important Organization’s
to Us Core
Competence
Strategy Formulation
Strategic
Outcomes
Satisfied
Shareholders
Strategy : Strategy Delighted

Our Game Map : Customers
Plan Translate Excellent
the Strategy Processes
Motivated
Workforce
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.
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.
Elements of Corporate Culture Formation
Organization Top Industry

System and Management Characteristics
Policy View
Profile of Organization
Employees Structure
Corporate Culture
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.
Human Resources Systems
Recruitment &
Selection
Training & Performance

Business Development Management Business
Strategy Result
HR
Systems
Reward Career
Management Management
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.
• What is the company’s general environment?

• What is the company’s industry structure?
• What is the company’s strategy?

• What is the company’s culture?
• What are the company’s structure, human
resources systems, and technology?
Inputs Design Components
Strategy
General
Does the
Environment organization Structure Culture
strategic
Industry orientation fit
Structure
with the
inputs? Technology
Human
Resources
Systems
Design Components
Strategy
Do the design
Structure Culture
components
fit with each
other?
Human Technology
Resources
Systems
Group-Level Diagnosis
Goal
Clarity
Organization Task Group Team

Structure Functioning
Design Effectiveness
Group Group
Composition Norms
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.
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
group’s work is designed
Group Composition Group Norms are member

concerns the membership of beliefs about how the group
groups should perform task
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.
Task Structure
• Task Structure is concerned with how

Task
the group’s work is designed.
Structure
• Task structure can vary along two key
dimensions : coordination of members’
effort and regulation of their task
behavior.
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.
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.
Group Norms
Group • Group Norms are member beliefs about

Norms how the group should perform task
• Norms derive from interaction among
members and serve as guides to group
behavior.
• How clear are the group’s goals?
• What is the group’s task structure?
• What is the composition of the group?
• What are the group’s performance norm?
• What is the nature of team functioning in the

group?
You can download full version of
these excellent slides at :
You can download this brilliant presentation at:
www.HR-Management-Slides.com
www.exploreHR.org
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Diagnosing Organizational Effectiveness

A Roadmap toward Corporate Sustainability

1. Comprehensive Model for Diagnosing Organizational Systems

• It is also a collaborative process between organization

NO DOES ANYONE YOU DUMB

HIDE IT YES YES

CAN YOU BLAME SOMEONE ELSE?

Inputs Design Components Outputs

Vision – Strategy Map :

Strategy : Strategy Delighted

Organization Top Industry

Human • Human resources systems include

Training & Performance

• Technology is concerned with the way an

• What is the company’s general environment?

• What is the company’s strategy?

Inputs Design Components

Inputs Design Components Outputs

Organization Task Group Team

Goal Clarity involves how

Task Structure is Group Functioning is the

Group Composition Group Norms are member

• Goal Clarity involves how well the group

• Task Structure is concerned with how

Group • Group Functioning is the underlying

Group • Group composition concerns the

Group • Group Norms are member beliefs about

• How clear are the group’s goals?

• What is the group’s task structure?

• What is the composition of the group?

• What are the group’s performance norm?

• What is the nature of team functioning in the

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