Learning Objectives

 Discuss the philosophy and purpose of diagnosis in

organization development (OD).

 Explain the role of diagnostic models in OD, especially the

open-systems model.

 Describe and apply organization-level diagnostic processes.

 What is Diagnosis?

Diagnosis is a collaborative
process between organizational
members and the OD consultant
to collect pertinent information,
analyze it, and draw conclusions
for action planning and
intervention.
 Open Systems Model

 This model recognizes that organizations exist in the context of a larger environment that affects
how the organization performs and in turn is affected by how the organization interacts with it.
 This also suggests that organizations operate within an external environment, takes specific inputs
from the environment, and transforms those inputs using social and technical processes
Properties of Systems

Environments

Inputs, Transformations, and

Outputs

Boundaries

Feedback

Equifinality

Alignment
Diagnosing Organizational Systems

The key to effective diagnosis

is…

Know what to look for at each

organizational level

Recognize how the levels affect each

other
Organization Environments and Inputs

Environmental Types
 General Environment
 Task Environment and Industry Structure
 Rate of Change and Complexity
 Enacted Environment

Environmental Dimensions
 Information Uncertainty
 Resource Dependency
 Organization Design Components

 Strategy
The way an organization uses its resources
(human, economic, or technical) to gain and
sustain a competitive advantage

 Technology
The way an organization converts inputs into
products and services
 Organization Design Components

 Structure
The way an organization divides and
coordinates work into and across subunits
which assign tasks to groups or individuals

 Measurement Systems
The methods of gathering, assessing, and
disseminating information on the activities of
groups and individuals in organizations.
 Organization Design Components

 Human Resource Systems

The mechanisms for selecting, developing,
appraising, and rewarding organization
members

 Culture
 The basic assumptions, values and
norms shared by organization members
 Represents both an “outcome” of
organization design and a “foundation” or
“constraint” to change
 Organization-Level Outputs

Outputs are measures of how well the design

contributes to organization effectiveness on three
kinds of outcomes.

 Organization Performance
 Profits, profitability, stock price
 Productivity
 Cost/employee, cost/unit, error rates,
quality
 Stakeholder Satisfaction
 Market share, employee satisfaction,
regulation compliance, sustainability
 Alignment

 Diagnosis involves understanding each

of the parts in the model and then
assessing how the elements of the
strategic orientation align with each
other and with the inputs

 Organization effectiveness is likely to be

high when there is good alignment
 Key Alignment Questions

Does the organization’s strategy fit with

the inputs?

Do the organization design components

fit with each other to jointly support the
strategy?
Thank You