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An Experiential Approach to Organization Development 7 th edition Chapter 5Slide 1

Chapter 5Chapter 5

The Diagnostic Process


Learning Objectives (part 1 of 2)

Identify system parameters and recognize

symptoms, problems, and causes of

organizational ineffectiveness.

Recognize techniques for gathering

information from client systems.


Learning Objectives (part 2 of 2)

Describe major diagnostic models and

techniques used in OD programs.

Apply systematic diagnosis to organizational

situations.


Data Mining at McDonald’s?(part 1 of 2)

McDonald’s has new method of gathering data

from customers.

Sends mystery-diners to restaurants.

Collects data useful to individual store.

Evaluators trained so there was consistency

in grading.


Data Mining at McDonald’s?(part 2 of 2)

Stores evaluated every six months.

Simultaneously conducts in-depth interviews

with repeat customers.


Diagnosing Problem Areas(part 1 of 2)

Identification of areas for improvement.

Assess organization’s current performance and

desired level of quality.


Diagnosing Problem Areas(part 2 of 2)

Provides information that allows for faster-

reacting organization.

Analyzes data on structure, administration,

interaction, and other elements.


What is Diagnosis?

A systematic approach to understand present

state of organization.

Specifies nature of problem, causes, and

provide basis for selecting strategies.

Involves systematic analysis of data.


Critical Issues in Diagnosis

Simplicity.

Visibility.

Involvement.

Primary factors.

Measure what’s

important.

Sense of urgency.


The Process

Diagnosis is cyclical process involving:

Data gathering.

Identification of

problem areas.

Interpretation.

Potential action

programs.


Steps in Diagnosis (part 1 of 2)

Step 1: Tentative problem identified.

Step 2: Collect data.

Step 3: Analyze data.

Step 4: Feedback data.

Step 5: More data needed?


Steps in Diagnosis (part 2 of 2)

Step 6: Problems areas identified.

Step 7: Is client motivated?

Step 8: Diagnosis and work on problem.

Step 9: Monitor and assess results.


Figure 5.1The Diagnostic Process


Performance Gap

Difference between what organization could do

and what organization is doing.


Self-Assessment Gap Analysisof Four Key Areas

1. Organization’s strengths.

2. What can be done to take advantage of

strengths.

3. Organization’s weaknesses.

4. What can be done to alleviate weaknesses.


Figure 5.2The Performance Gap


OD in Practice:Diagnosis For Kodak (part 1 of 3)

Kodak is attempting to transform to cutting edge

of digital revolution.

Kodak surveyed managers.

Rearranged business in late 1990s.

Limited in its scope and of little benefit.


OD in Practice (part 2 of 3)

Kodak known to favor caution over risk-taking.

Kodak is chemical company that must transform

into electronics company.

Electronics highly competitive and Kodak has

little experience with electronics.


OD in Practice (part 3 of 3)

New products and change.

Kodak focuses attention on nonconsumer

applications.

Experiencing strong growth.

New managers have proven track records.


Data-Collection Process

Data is an aggregation of:

Statistics.

Opinions.

Assumptions.

Signs.

Signals.

Clues.

Facts.

Information is data that have form and structure.


Data Collection Stages (part 1 of 4)

1. Definition of objectives.

2. Selection of factors.

3. Selection of data-gathering method.



Definition of Objectives

Define objectives of change program.

Identify preliminary diagnosis and further

information required.



Selection of Key Factors

Identify central variables.

May be necessary to increase range and depth

of data.



Selection of Data-Gathering Method

Selection of one or more methods of gathering

data.

Nature of the problem helps determine method.

Variety of methods may be used.


Types of Methods (part 1 of 4)

1. Secondary sources.

2. Organization and industry data.

3. Employee surveys or questionnaires.

Useful with a large number of people.

Data may lack “richness.”



Sociogram

Visual method of recording and analyzing

preferences in a group.

Each member represented by circle.

Communication represented by arrows

indicating direction of choice.


Figure 5.3Sociogram



Direct observation.

Observing how people go about tasks.

Interviews.

One of most widely used methods.

Direct, personal, and flexible.



Directed interview.

Open-ended questions.

Closed questions.

Nondirected interview.


Implementation ofData Collection

Decide from whom data will be obtained.

Select appropriate technique.

Implement data-collection program.


Analysis of Data

Techniques used to analyze data dictated by

method used to gather data.


Guidelines for Evaluating Effectiveness of Data Collection

Validity of data.

Time to collect data.

Cost of data collection.

Organization culture and norms.

Hawthorne effect in data collecting.


Our Changing World:eBay, Center for Global Commerce (part 1 of 2)

eBay has become marketplace of world.

eBay driven by understanding data.

CEO Whitman says, “If you can’t measure it,

you can’t control it.”

Understanding data is how eBay learns about

its customers.


Our Changing World (part 2 of 2)

Changes at eBay are like needle-moving.

Make small changes to make small gains.

Danger is that eBay becomes obsessed with

data and measurements.

“You have to be careful because you could

measure too much,” Whitman says.


Diagnostic Models

Of OD practitioners, 70% reported using a

model to assist in identifying problems.

Models may be used to analyze structure,

culture, and behavior of organization.


Types of Diagnostic Models

Analytical

Emergent-group

behavior

Management

practitioner

Sociotechnical systems

Cause maps and social

network analysis

Force-field analysis


Analytical Model

Used for interdepartmental issues.

Examines characteristics of departments.

Objective to help departments achieve

integration.


Table 5.1Orientation of Functional Departments


Emergent-Group Behavior Model

Used to analyze interdependence of groups.

Collects data on activities, interactions, and

norms.


Management Practitioner Model

Basic planning.

General business

practices.

Finance.

Advertising and

promotion.

Market research.

Personnel.

Six basic factors are analyzed:


Sociotechnical Systems Model

Two interrelated systems in organization:

Social system. Technical system.

The 2 systems are interrelated.

Diagnosis determines interrelationships and

type of feedback required.


Cause Maps and Social Network Analysis Models

Cause maps—mathematical representations of

relationships among variables.

Social network analysis—mathematical

representation of individual and group.

Analysis reveals important interdependencies.


Force-Field Analysis Model(part 1 of 2)

Behavior balance between forces working in

opposite directions.

Restraining forces - act to keep organization

stable.

Driving forces - act to change organization.


Force-Field Analysis Model(part 2 of 2)

When forces equal, organization in quasi-

stationary state of equilibrium.

Analysis determines forces to increase or

decrease.


Figure 5.4Force-Field Analysis Model


Figure 5.5Example of Use of Force-Field Analysis


Red Flags in Diagnosis

Confidentiality of data.

Over diagnosis.

Crisis diagnosis.

Overwhelming diagnosis.

Practitioner’s favorite diagnosis.

Diagnosis of symptom.


Key Words and Concepts

Analytical model - Examines characteristics of

departments. Objective to help departments

achieve integration.

Cause maps - uses mathematical

representations of causal relationships

among variables.


Clique - in a sociogram, when three or more

persons select one another.

Closed questions - specific questions

normally answered yes or no.

Confidentiality - privileged communications

that should not be divulged.


Data - unstructured, unformed facts.

Diagnosis - analysis of problem(s).

Directed interview - interview in which specific

information is sought.

Driving forces - put pressure on organization

to change.


Emergent-group behavior model - used to

analyze interdependence of groups.

Equilibrium –restraining and driving forces for

change equal or in balance.

Force-field analysis model - weights forces

for and against change.


Hawthorne effect - act of investigating or

observing may influence the behavior of

those being investigated.

Information - data that has structure and

form.

Isolates – individuals within a group who are

chosen rarely by others.


Mutual choice - when individuals within a

group choose one another.

Nondirected interview - interview direction is

chosen by respondent.

One-way choice - when individual in group

chooses another but is not chosen in return.


Open-ended questions - allows respondent to

be unrestrained and to direct interview.

Performance gap - difference between

desired and actual performance.

Questionnaires - method of gathering data

normally used for large number of responses.


Restraining forces - forces that act to keep

organization stable.

Social network analysis model - uses

mathematical representation of relationships

between individuals or groups and reveals

interdependencies.


Sociogram - diagram of relationships and

interactions within group.

Sociometric approach – technique for

collecting quantitative data on work groups.

Result of approach is sociogram.


Sociotechnical systems model - determines

how social and technological systems

interrelate and the feedback between

subsystems.

Stars – those highly chosen individuals.


Preparations for Next Chapter

Read Chapter 6.

Prepare for OD Skills Simulation 6.1. Read

the Company Situation and complete Step 1.

Read and analyze Case: The Hexadecimal

Company.

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