Organizational DiagnosisModule 3 Certificate in Organization DevelopmentSan Beda College, Alabang

OD Diagnosis

What does it mean: Diagnosis is Treatment?What are the mechanisms involved in deriving Diagnosis?What is the value/utility of a Diagnosis?Consider the models: McKinsey 7S, Weisbord 6-box, etc what do they have in common?What is Systems Theory & how is it used?

Team Task: Analyze and draw a systems model of an organizational problem showing mechanisms & possible intervention points

Agenda for this module

Think of visiting your doctor, computer or auto mechanic professional. What is a diagnosis?What does he or she do to diagnose your condition?What are the uses/purposes of diagnosis; What does it allow you to do?What, therefore, are the criteria for a sound diagnosis?How is diagnosis derived?Organizational Diagnosis

Level 1: raw dataLevel 2: concepts & constructsLevel 3: conceptual description (the explanation)Level 4: diagnostic labele.g., conflict, leadership, norms, roles, communication channels, decision style, etc.e.g., transition adjustment reaction with emphasis on role diffusione.g., during organizational transition, stakeholder roles have become diffused, resulting in role overload, role conflict, and role boundary disputes. These in turn have led to increased anxiety about the future and lowered productivity and worse turnover hasincreasede.g., observations, statements, survey, archived data, etc.The Diagnostic Process

Sample Application The Diagnostic ProcessLevel 1: Raw data. Number of enrollees decreasing Level 2: Concepts: Perceived quality of education is not value for moneyLevel 3: Conceptual description: There appears to be gap between the actual experiences of students and parents versus expectations in the delivery of education services.Level 4: Diagnostic label: Expectations between enrollees and school were not matched.

Raw DataLevel 1: Raw data. Increasing TO of technical people (Rachel)Level 2: Concepts: The other side of the fence is greener; 3 out of 12 are leaving for greener pasture or 25% of incumbents; employees expect management will not match new salary offers.Level 3: Conceptual description: Three out of 12 technical people are leavingthe company because management is not able to match new salary offers and this departure impacts on keeping critical talents and critical roles.Level 4: Diagnostic Label: Organization loses critical talents in critical roles at this time and there seems to be no response from the organization.

Acknowledgement of organization as a total system e.g. Open system theory (inputs-throughputs-outputs connected with dots)Data collection motivates org members to learn & participate in the change processFacilitation of admission that actual problem exists by top management Exploration of other data collection techniques to rule out presenting problems & search for underlying problems Results of data collection are fed back to the org members within org to begin the process of org change Focus activities and processes within the system that is considered to be vital to organizational lifeNarrow and symptomatic quick fixesBroad Diagnosis is Treatment

Weisbord 6-Box Model (1976)

Force-Field Analysis

Force Field Analysis by Kurt Lewin (1951)CurrentState of Affairs(Problem)DesiredState of Affairs(Goal)DrivingForcesRestraining ForcesEquilibriumInterruptedDisequilibriumDuring ChangeEquilibrium Reestablished

Leavitts Model (1965)StructurePeople/ ActorsTask/ PurposeTechnology

Likert System Analysis (1967)System 3: ConsultativeSystem 2: Benevolent-AuthoritativeSystem 1 : Exploitative-AuthoritativeSystem 4: Participative Group

Nelson & Burns (1984)System 3: The Proactive OrgSystem 2: The Responsive OrgSystem 1 : The Reactive OrganizationSystem 4: The HP Org

Baker (1996)System 3: The Consultative OrgSystem 2: The Competitive OrgSystem 1 : The Coercive OrgSystem 4: The Collaborative Org

Open Systems Theory (Katz & Kahn, 1978)TransformationInputOutputEnvironment

The 7-S McKinsey model (Tom Peters & Robert Waterman 1982)

7SStrategy The plan devised to maintain and build competitive advantage over competitionStructure The way the organization is structured and who reports to whomSystems- The daily activities and procedures that staff members engage in to get the job doneShared Values (Superordinate goals) Core values of the company that are evidenced in the corporate culture and the general work ethicStyle The style of leadership adoptedStaff The employees and their general capabilitiesSkills The actual skills and competencies of the employees working for the company

Tichys Technical, Political, Cultural (TPC) Model ( 1983) TechnicalOr StrategicPoliticalCulturalOrganization

Organization as Strategic DesignKey Concepts: Formal structures (the boxes), systems e.g. IT, Accounting, Incentives etcKey Processes: Grouping (differentiation), Linking (integration)View of the Environment: Opportunities & Threats, resourcesRole of the Manager: Org Architect, strategistStimuli for change: Lack of internal congruence, lack of fit between organization and strategy. Between org and environmentBarriers to Change: Inadequate analysis or information

Grouping & LinkingGroupingBy activity e.g. functionalBy Output by service or product (BU)By market user, customer, geographyLinkingReporting structureInformation systemsPlanning systemsManagerial roles liaison, integratorCross unit groups informal/ temporary groups (councils, steering committees)Shared socialization processes cultivation of informal information networks

Summary Points:Strategic Design Need for fitEnvironment, strategy, structureNeed for linkingIntegration StructuresStructures NecessaryIntegration only occurs when integrating processes work wellStructures create interests, power, identities analyzing these require political & cultural lenses

Tichys Technical, Political, Cultural (TPC) Model ( 1983) TechnicalOr StrategicPoliticalCulturalOrganization

Organization as a Political SystemKey Variables: Power and influence, interests, dominant coalitionKey Processes: Conflict, negotiationView of the Organization: StakeholdersRole of the Manager: Forging coalitions, identifying and leveraging interests, negotiatingStimuli for Change: Shifts in dominant coalition, in power of stakeholdersObstacles to Change: Entrenched Interests

The New Organization & Sources of ConflictFlatResponsibility exceeds authorityFlexibleChange means dealing with resistanceNetworkedCross functional collaboration means conflict at site of decision makingDiverse/ GlobalChallenges of working across differences

Analyzing InterestsSubstantiveCosts, resources, quality, timeOrganizationalProtect function, promote career, look good, save faceRelationalMaintain relationships, short v long termIndividualCommitment to work, personal life, the community

Source of PowerFormal authority: Power of positionControl of scarce resources: Access to resources (funds, skills, knowledge) that others depend on e.g.Information is power so hold on to itInformation sharing promotes learning; filling structural holes (linking 2 groups who need info) enhances powerControl of decision making: Influence over premises, processes, objectives, outcomesAbility to cope with uncertainty: Environmental (financial, markets, raw materials) & operational (breakdowns)Alliance/ network: Ability to call on powerful othersSymbolism & management of meaning: Ability to define reality for others; style/ charisma

Forms of Negotiations/ChangeNegotiationsForcing: Domination, the use of power and position; hard bargaining; position basedFostering: PS, working toward integrative outcomes, Interest basedSmoothing/ Avoidance: Gloss over differences, play down disagreements, let problems pass, avoid the otherCompromise: (split the difference), problem solving (work for an integrative outcome)

Conflict ManagementManager as arbitratorMakes decisions when others cant agreeManager as mediatorHelps others resolve their differences voluntarilyManager as facilitatorAssists others in addressing their underlying interestsManager as negotiatorRepresents interest of his/her group/unit/ organization

Summary Points:Political PerspectivePolitics usually lie under the surfaceManaging politics requires legitimizing differencesTo analyze and manage ask:Who are the stakeholders?What their interests?Who has the power?How can power be changed: allies and blockers?What options are possible for achieving interests?What happens if interests are not met?Manager must be skilled negotiator and conflict resolver

Tichys Technical, Political, Cultural (TPC) Model ( 1983) TechnicalOr StrategicPoliticalCulturalOrganization

Organization as Cultural/Social SystemKey variables: Shared mental maps, org culture (artifacts, values, basic assumptions)Key processes: Meaning and interpretation, legitimation, rhetoric, visionView of the environment: Social and cultural networkRole of the manager: Articulating vision, managing the cultureStimuli for change: Challenges to basic assumption, contending interpretationsImpediments for change: Dominant culture

Culture DefinedShared understandings a given group has developed to deal with the problems of external adaptation and internal integration.Historical: Passed across generationsMoral force: Normative not utilitarianAssociated with stability of a groupThe way we do things around hereDifferentiating/identify device: Relative to other groupsAssociated with the intensity of common problems faced by membersChanges across time (usually small) related to the degree the internal and external environment shift

What is Organizational CultureVisible artifacts

Stated values

Underlying assumptionsVisible org structures and processes

Strategies, goals, philosophies (Espoused justification)

Unconscious, taken for granted beliefs, habits of perception, thought, and feelings (ultimate source of values and action)

Case StudyDivide into 3 groups according to the perspective you want to work onMeet and discuss what data, info you will look for to answer two questions:What is the problem here?What actions would you recommend?

First Case TeaM E: Cultural Perspective - BackgroundEmployees are used to being pampered by the previous management. When the new management came in, employees became more resistant and sensitive to change.

Problem Management cannot solve the issue concerning the attitude of the employees due to existing coalition.

Recommended solutionsReorientation of new policy and management direction.Open communication and transparency of purpose and reason for the different changes of the new management direction.Establish a tie or stronger relationship with the different department coalitions.

2nd Case - 4M Group of Companies Strategic DesignCurrent Situation: there are 18 companies under the 4M group of companies. Each company, with their own presidents, reports to one chairperson. Support functions (eg HR, IT, Finance, Security) are centralized. In a period of 6 months, 4M plans to divide the 18 companies among the 4 daughters. They will each become a chairperson. Support functions will be decentralized.Smaller companies will be acquired by stronger companies within the same industry.

ProblemHow will management of each company address the decentralization of the support systems considering structural and people issues?

Recommended solutionsDevelop a strong communication plan to address or manage the apprehension and fearFormulate a clear Organizational Structure for each company.Determine positions that will be declared redundantDetermine/ clarify if each group will retain or develop their own policies and proceduresEg. HR policies

Burke-Litwin Model of Organizational Performance and Change ( 1992)What are the key areas?How are they connected?

SWOT ModelEnvironmental AnalysisOpportunitiesThreatsInstitutional AnalysisStrengthsWeaknesses

OpportunityExternal condition that gives an organization a change to improve its effectiveness and efficiency

ThreatAn external condition that places an organization at a disadvantaged position or undermines its effectiveness and efficiency or its ability to survive.

StrengthsA characteristic or asset of the organization that enhances its capacities to achieve its goals and objectives.

WeaknessesA characteristic or asset of the organization that undermines its capacity to reach its goals and objectives.

Matrix AnalysisEnvironmental Analysis

CategoriesOpportunitiesThreatsPoliticalEconomicSocialTechnologicalGeographicalCommunity relationsInformal Sector Network

Matrix AnalysisInstitutional Analysis

CategoriesStrengthsWeaknessesOrganizational role and profilePrograms and servicesResources and capabilitiesManagement systemsExternal links

Diagnosis/Treatment considerations: identify the key problem identify linkages trace multiple linkages identify barriers to solution explore removing barriersTheProblemWhat influences it?What influences it?What influences it?What influences it?What prevents it from being solved?What influences it?

Problems with OD Diagnosis There aint none!There are no widely used, standard, or conventional diagnostic systems in ODThere is no standard diagnostic nomenclatureThere are no standard tools for assessmentSome labels are so poorly defined as to be meaninglessThere is no clear relationship between Diagnosis and TreatmentMost interventions are not standardizedThere are very few studies on Treatment outcomesThey usually focus on what is going wrong rather than what is going right (e.g., solution focus, problem solving, teambuilding, etc.)

Instrumented Feedback Diagnosis is treatmentComplete the initial OD stages of scouting, contracting, etc.Identify the areas of primary focus: key result areas, mission critical, etc.Gather information (survey, hard data, perceptions, judgments, etc.)Organize and present information to stakeholdersExplore interpretations what do these reflect? What do you think it means?Action what do you want to do about it?

Team Diagnostic ActivityGroup into 3 teams. Identify and discuss the case.Identify the problemUse one of the diagnostic models to identify key areasDiscuss the relationships among key areas relevant to the problemWhat is it about the structure/processes that enables the problem to arise and maintain it?Where are the intervention points implied by this conceptualization?What would you do if you could?