diagnosing organizational effectiveness

1

Diagnosing Organizational Diagnosing Organizational EffectivenessEffectiveness

A Roadmap toward Corporate SustainabilityA Roadmap toward Corporate Sustainability

2

ContentsContents

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

3

Comprehensive Model for Comprehensive Model for Diagnosing Organizational Systems Diagnosing Organizational Systems

4

What is Diagnosis?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.

5

High Politics Organization:High Politics Organization:Common Approach to Business ProblemsCommon Approach to Business Problems

DOES THE THING WORK?

DON’T MESS WITH IT DID YOU MESS WITH IT?

YOU DUMB*#@>!!

DOES ANYONEKNOW?

WILL YOUCATCH HELL?

HIDE IT

TRASH IT

YOU POOR$#@! ~*%$

CAN YOU BLAME SOMEONE ELSE?

NO PROBLEM

YES NO

YESNO

NO

YES YES

YESNO

6

A. ORGANIZATIONAL LEVEL

B. GROUP LEVEL

C. INDIVIDUAL LEVEL

- General Environment- Industry Structure

Inputs Design Components

Organization Effectiveness

OutputsStrategy

Structure Culture

Human Resources

Technology

- Organization Design

Inputs Design Components

Team Effectivenesse.g., quality of work life, performance

OutputsGoal Clarity

Task Structure

Group Functioning

Group Composition

Group Norms

- Organization Design- Group Design- Personal Characteristics

Inputs Design ComponentsIndividual Effectivenesse.g., job satisfaction, personal development

OutputsSkill Variety

Task Identity Autonomy

Task Significance

Feedback about Results

Comprehensive Model for Diagnosing OrganizationComprehensive Model for Diagnosing Organization

7

Organizational-Level Organizational-Level DiagnosisDiagnosis

8

Organizational-Level DiagnosisOrganizational-Level Diagnosis

Culture

TechnologyHuman Resources

Systems

Structure

Strategy

Organization Effectiveness

General Environment

Industry Structure

Inputs Design Components Outputs

9

General EnvironmentGeneral Environment

General General EnvironmentEnvironment

• The general environment represent the 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.

10

Five Forces of Industry StructureFive Forces of Industry Structure

Supplier Supplier PowerPower

Threats Threats of Entryof Entry

Buyer Buyer PowerPower

Threats of Threats of SubstitutesSubstitutes

Rivalry Rivalry among among

CompetitorsCompetitors

Industry Industry StructureStructure

11

StrategyStrategy

StrategyStrategy • 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.

12

Mission – Why We

Exist

Vision – What We

Want to Be

Values – What’s

Important to Us

Strategy : Our Game

Plan

Strategy Map : Translate the Strategy into

Action

Strategy FormulationStrategy Formulation

Analysis of General

Environment and Industry

Structure

Analysis of Organization’s

Core Competence

13

Strategy : Our Game

Plan

Strategy Map :

Translate the Strategy

Strategic Outcomes

Satisfied Shareholders

Delighted Customers

Excellent Processes

Motivated Workforce

Strategy FormulationStrategy Formulation

14

StructureStructure

StructureStructure • 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.

15

CultureCulture

CultureCulture • 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.

16

Elements of Corporate Culture FormationElements of Corporate Culture Formation

Top Management

View

Organization System and

Policy

Industry Characteristics

Organization Structure

Profile of Employees

Corporate CultureCorporate Culture

17

Human Resources Systems Human Resources Systems

Human Human Resources Resources SystemsSystems

• Human resources systems include mechanism for selecting, developing, appraising and rewarding organization members.

• HR systems influence the mix of skills, personalities and behaviors of organization members.

18

Recruitment &Selection

Training & Development

Performance Management

Reward Management

Career Management

HR Systems

BusinessBusinessStrategyStrategy

BusinessBusinessResultResult

Human Resources Systems Human Resources Systems

19

Technology Technology

TechnologyTechnology• Technology is concerned with the way

an organization converts inputs into products and services.

• It represents the core of the transformation function and includes production methods, work flow and equipment.

20


• 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?

21


Culture


Systems

Structure

Strategy

General Environment

Industry Structure

InputsInputs Design ComponentsDesign Components

Does the Does the organization organization

strategic strategic orientation fit orientation fit

with the with the inputs?inputs?

22


Culture


Systems

Structure

Strategy

Design ComponentsDesign Components

Do the design Do the design components components fit with each fit with each

other?other?

23

Group-Level DiagnosisGroup-Level Diagnosis

24

GroupFunctioning


Group Norms

Group Composition

Task Structure

Goal Clarity

OrganizationDesign

Team Effectiveness

InputsInputs Design ComponentsDesign Components OutputsOutputs

25

Organization DesignOrganization Design

Organization Design

• Organization design is the major input to 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.

26

Group Functioning is the underlying basis of group life

Group Norms are member beliefs about how the group should perform task

Group Composition concerns the membership of

groups

Task Structure is concerned with how the

group’s work is designed

Goal Clarity involves how well the group understand its

objectives

Group ComponentsGroup Components

27

• Goal Clarity involves how well the group understands its objectives.

• 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.

Goal ClarityGoal Clarity

Goal Clarity

28

• Task Structure is concerned with how the group’s work is designed.

• Task structure can vary along two key dimensions : coordination of members’ effort and regulation of their task behavior.

Task StructureTask Structure

Task Structure

29

• Group Functioning is the underlying 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 FunctioningGroup Functioning

Group Functioning

30

• Group composition concerns the 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 CompositionGroup Composition

Group Composition

31

• 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.

Group NormsGroup Norms

Group Norms

32


• 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?

33

Individual-Level Individual-Level DiagnosisDiagnosis

34

Task Significance

FeedbackAutonomy

Task Identity

Skill Variety

OrganizationDesign

Group Design

Personal Characteristics (skill, knowledge

attitude)

IndividualEffectiveness

Individual-Level DiagnosisIndividual-Level Diagnosis

InputsInputs Design ComponentsDesign Components OutputsOutputs

35

Organization Organization DesignDesign

• Organization design is concerned with the larger organization within which the individual job is the smallest unit.

• Group design concerns the larger group or department containing the individual job.

• Like organization design, group design is an essential part of the job context.

GroupGroupDesignDesign


36

Personal Personal CharacteristicsCharacteristics

• Personal characteristics of individuals 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.


37

Individual Jobs DimensionsIndividual Jobs Dimensions

Five Key Five Key DimensionsDimensions

Autonomy

Feedback About ResultsTask Significance

Task Identity

Skill Variety

38

Individual Jobs DimensionsIndividual Jobs Dimensions

AutonomyThe degree to which a job provides freedom and discretion in scheduling the work and determining work methods.

Feedback About ResultsThe degree to which a job provides employee with direct and clear information about the effectiveness of task performance

Task SignificanceThe degree to which a job has a

significant impact on other people’s lives

Task IdentityThe degree to which the job

requires completion of a whole and identifiable piece

of work

Skill VarietyThe degree to which the job requires a variety of different

activities

39

Job Characteristics Model - Hackman/OldhamJob Characteristics Model - Hackman/Oldham

Core Job Dimension

Skill VarietyTask Identity

Task Significance

Autonomy

Feedback

Psychological States

Personal and Work Outcomes

Experienced meaningfulness of

the wok

Experienced responsibility for outcomes of the

work

Knowledge of the actual results of

the work activities

• High internal work motivation• High-quality work performance• High satisfaction with the work• Low turnover

40


• 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?

41


• 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?

42

Designing Effective Designing Effective Intervention Intervention

43

• A set of sequenced planned actions or events intended to help an organization increase its effectiveness.

InterventionIntervention

Intervention• Interventions purposely disrupt

status quo; they are deliberate attempts to change an organization or subunit toward a different and more effective state.

44

1. The extent to which it fits the needs of the organization

2. The extent to which it transfer change-management competence to organization members

Effective InterventionEffective Intervention

Two Major Criteria to Define an Effective

Intervention

45

Intervention Success FactorsIntervention Success Factors

Key Factors that can affect intervention

success

Readiness for Change

Capability to Change

Capability of the Change

Agent

Cultural Context

46

Types of InterventionTypes of Intervention

Human Process Intervention

Types of Types of InterventionIntervention

Structural Intervention

Human Resource Management Intervention

Strategic Intervention

47

Process Process ConsultationConsultation

Examples of Human Process Intervention

Team BuildingTeam Building

This intervention focuses on interpersonal relations and social dynamics occurring in work groups.

This intervention helps work groups become more effective in accomplishing task

48

Structural DesignStructural Design

Examples of Structural Intervention

DownsizingDownsizing

This change process concerns the organization’s division of labor – how to specialize task performances.

This intervention reduces costs and bureaucracy by decreasing size of the organization

ReengineeringReengineering This intervention radically redesign the organization’s core work process to create more responsive performance.

49

Performance Performance ManagementManagement

Examples of Human Resources

Management Intervention

Career Planning & Career Planning & DevelopmentDevelopment

This intervention is a systematic process to link between corporate goal settings and reward systems.

This intervention helps people choose career paths and attain career objectives.

Reward SystemReward System This intervention involves the design of organizational rewards to improve employee satisfaction and performance.

50

Merger and Merger and AcquisitionAcquisition

Examples of Strategic Intervention

Cultural ChangeCultural Change

This intervention is a systematic process to integrate two or more organizations.

This intervention helps organizations develop cultures appropriate to their strategies and environment.

Organizational Organizational LearningLearning

This intervention seeks to enhance an organization’s capability to acquire and deploy new knowledge.

51

Institutionalizing Interventions Institutionalizing Interventions

Effective Institutionalization

ProcessIntervention

Enhance Organization Performance

52

Factors Affecting Institutionalization ProcessFactors Affecting Institutionalization Process

Organization Characteristics:• Congruence• Stability • Unionization

InterventionCharacteristics:• Goal Specifity• Programmability• Level of Change Target• Internal Support• Sponsorship

Institutionalization Process

53

Organization Characteristics:

CongruenceThis is the degree to which an intervention is perceived as being in harmony with the organization’s strategy, and structure; its current environment; and other changes taking place.

Stability of Environment and

Technology

This involves the degree to which the organization’s environment and technology are changing.

54

Organization Characteristics:

UnionizationDiffusion of interventions may be more difficult in unionized settings, especially if the changes affect unions contract issues, such as salary and fringe benefit, job design, and employee flexibility.

55

Intervention Characteristics:

Goal SpecifityThis involves the extent to which intervention goals are specific rather than broad.

Programmability This involves the degree to which the changes can be programmed or the extent to which the different intervention characteristics can be specified early in advance to enable socialization, commitment, and reward allocation.

56


Level of Change Target

This concerns the extent to which the change target is the total organization, rather than a department or small work group.

Internal Support

This refers to the degree to which there is an internal support system to guide the change process.

57


Sponsorship This concerns the presence of a powerful sponsor who can initiate, allocate, and legitimize resources for the intervention.

58

Recommended Further ReadingsRecommended Further Readings

1. Thomas Cummings and Christopher Worler, Organization Development and Change, South Western College Publishing

2. Stephen Robbins, Organizational Behavior, Prentice Hall

3. Marvin Ross Weisbor, Organizational Diagnosis : A Workbook of Theory and Practice, Perseus Books Group

59

End of Material

diagnosing organizational effectiveness

Documents