4_organizational diagnosis_1

Semester 4Organization Development

Organizational Diagnosis – lesson 1Presented by

Dr. Prabath Karunanayake MBBS, MBA in HRM, PGDipPsych, PGDipOHS

Director HR, China Harbour Engineering CompanyLead Consultant, Prabath Karunanayake Associates

[email protected]/prabath2014

Cummings & Worley, 9e (c) 2009 South-Western College Publishing

MASTERS INHUMAN RESOURCE

MANAGEMENT

mailto:[email protected]

http://www.facebook.com/prabath2014

Lesson plan

• Introduction to organizational diagnosis• Organization-level diagnosis• Group-level diagnosis• Individual-level diagnosis• Activity – Case studies on Analyzing

organizations, groups and individuals • Diagnostic relationship• Collecting, analyzing and presenting data• Feeding back diagnostic information• Assignment – Organizational climate survey



Diagnosis Defined

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.


Organization-Level Diagnosis

Inputs

Technology

Strategy Structure

HR Measurement Systems Systems

GeneralEnvironment

Task Environment

Design ComponentsC

ultu

re

Organ

izationE

ffectiveness

Outputs


Organization-Level Inputs

• General Environment– External forces that can directly or indirectly affect the

attainment of organizational objectives

– Political, economic, social, technological, ecological and legal (PESTEL)

• Task Environment (Industry Structure)– External forces that can directly affect the organization

– Customers, suppliers, substitute products, new entrants, and rivalry among competitors (Porter’s five forces)


Organization Design Components

• Strategy– the way an organization uses its resources (human,

economic, or technical) to gain and sustain a competitive advantage

• Structure– how attention and resources are focused on task

accomplishment

• Technology– the way an organization converts inputs into products and

services


• Human Resource Systems– the mechanisms for selecting, developing, appraising, and

rewarding organization members

• Measurement Systems– methods of gathering, assessing, and disseminating

information on the activities of groups and individuals in organizations


• Organization Culture– Basic assumptions, values, and norms shared by

organization members

– Represents both an ‘outcome’ of organization design and a ‘constraint’ to change


Organization-Level Outputs

• Organization Performance– e.g., profits, profitability, stock price

• Productivity– e.g., cost/employee, cost/unit, error rates, quality

• Stakeholder Satisfaction– e.g., market share, employee satisfaction, analysis opinions


Organization-Level Alignment

• Does the organization’s strategic orientation fit with the inputs?– Products and services respond to real needs

– Operate in an ecologically sustainable manner

• Do the design components fit with each other?– Alignment of strategy with structure, use of technology,

human resource systems and measurement systems

– Alignment of human resource systems and structure

– Alignment of structure and use of technology


Goal Clarity

Task TeamStructure Functioning

Group GroupComposition Norms

Group-Level Diagnostic Model

Inputs Design Components Outputs

OrganizationDesign

TeamEffectiveness


Group-level Inputs

• Organization design is the major input• Consists of design characteristics of the larger

organization• Include:

– Structure– Technology– Human resource systems– Measurement systems– Culture


Group-Level Design Components

• Goal Clarity– extent to which group understands its objectives

• Task Structure– the way the group’s work is designed

• Team Functioning– the quality of group dynamics among members

• Group Composition– the characteristics of group members

• Group Norms– the unwritten rules that govern behavior


Group-level Outputs

• Group performance– Ability to control or reduce costs, increase productivity or

improve quality

• Group member’s quality of work life– Job satisfaction, team cohesiveness and organizational

commitment


Group-level Alignment

• Group design should match larger organization design• Low differentiation and high integration

– Group composition and task structure

• Differentiated structure– Goal clarity

• Interdependent tasks – Goal clarity, task structure, group composition, performance

norms and team functioning

• High information processing and decision making– Task structure, group composition, group norms and team

functioning


Goal Variety

Task Identity Autonomy

Task Feedback Significance

Individual-Level Diagnostic Model

Inputs Design Components Outputs

Organization Design

Group Design

PersonalTraits

IndividualEffectiveness


Individual-Level Inputs

• Organization design– Structure, technology, measurement systems and human

resource systems

• Group design– Task structure, group composition, group norms and team

functioning

• Personal characteristics– Age, education, experience, skills and abilities, needs and

expectations


Individual-Level Design Components

• Skill Variety– The range of activities and abilities required for task

completion

• Task Identity– The ability to see a “whole” piece of work

• Task Significance– The impact of work on others

• Autonomy– The amount of freedom and discretion

• Feedback about Results– Knowledge of task performance outcomes


Individual-Level Outputs

• Performance– e.g. cost/unit, service or product quality

• Job Satisfaction– e.g. internal motivation

• Personal Development– e.g. growth in skills, knowledge, and self


Individual-level Alignment

• Larger organization and group design– Differentiated and integrated organizations and groups

promote autonomy, flexibility and innovation

• Personal characteristics– Enriched jobs fit people with growth needs and high levels

of skills and knowledge– Enriched jobs require information processing and decision

making skills

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4_organizational diagnosis_1

Documents

organization customers

college publishing masters

outcome of organization

organizational members

resources human

task accomplishment

human resource management

pertinent information