Diagnosing Organizational Effectiveness

Slide 1: Diagnosing Organizational Effectiveness A Roadmap toward Corporate Sustainability 1 www.exploreHR.org

Slide 2: Contents 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 2 www.exploreHR.org

Slide 3: You can download this presentation at: www.exploreHR.org Please visit www.exploreHR.org for more presentations on leadership, personal development, and HR management. 3 www.exploreHR.org

Slide 4: Comprehensive Model for Diagnosing Organizational Systems 4 www.exploreHR.org

Slide 5: 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 www.exploreHR.org

Slide 6: High Politics Organization: Common Approach to Business Problems YES NO DOES THE THING WORK? DON’T MESS DID YOU MESS WITH IT? WITH IT NO YES NO YOU DUMB DOES ANYONE *#@>!! KNOW? YES YES HIDE IT WILL YOU CATCH HELL? YOU POOR $#@! ~*%$ TRASH IT CAN YOU BLAME SOMEONE ELSE? NO YES NO PROBLEM 6 www.exploreHR.org

Slide 7: Comprehensive Model for Diagnosing Organization A. ORGANIZATIONAL LEVEL Design Components Outputs Inputs Strategy - General Organization Structure Culture Environment Effectiveness - Industry Structure Technology Human Resources B. GROUP LEVEL Design Components Outputs Inputs Goal Clarity Team Task Group Effectiveness - Organization Structure Functioning Design e.g., quality of work life, Group Group performance Composition Norms C. INDIVIDUAL LEVEL Design Components Inputs Outputs Individual Skill Variety - Organization Effectiveness Autonomy Design Task Identity e.g., job - Group Design satisfaction, - Personal personal Task Feedback Characteristics Significance about Results development 7 www.exploreHR.org

Slide 8: Organizational-Level Diagnosis If you find this presentation useful, please consider telling others about our site (www.exploreHR.org) 8 www.exploreHR.org

Slide 9: Organizational-Level Diagnosis Design Components Outputs Inputs Strategy General Organization Environment Structure Culture Effectiveness Industry Structure Technology Human Resources Systems 9 www.exploreHR.org

Slide 10: General Environment • The general environment represent the General external elements and forces that can Environment 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 www.exploreHR.org

Slide 11: Five Forces of Industry Structure Buyer Power Supplier Threats of Power Substitutes Industry Structure Rivalry Threats among of Entry Competitors 11 www.exploreHR.org

Slide 12: Strategy • A strategy represent the way an Strategy 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 www.exploreHR.org

Slide 13: Strategy Formulation Analysis of General Mission – Environment Why We and Industry Exist Structure Vision – Strategy Map : Strategy : What We Translate the Our Game Want to Be Strategy into Plan Action Values – What’s Analysis of Important Organization’s to Us Core Competence 13 www.exploreHR.org

Slide 14: Strategy Formulation Strategic Outcomes Satisfied Shareholders Delighted Strategy : Strategy Map Customers Our Game : Translate Plan the Strategy Excellent Processes Motivated Workforce 14 www.exploreHR.org

Slide 15: Structure • The structural system describes how Structure 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 www.exploreHR.org

Slide 16: Culture • Organization culture represents the basic Culture assumptions, values, and norms shared by organization members. • It orients employees to company goals and suggests the kinds of behaviors necessary for success. 16 www.exploreHR.org

Slide 17: Elements of Corporate Culture Formation Top Organization Industry Management System and Characteristics View Policy Profile of Organization Employees Structure Corporate Culture 17 www.exploreHR.org

Slide 18: Human Resources Systems • Human resources systems include Human Resources mechanism for selecting, developing, Systems appraising and rewarding organization members. • HR systems influence the mix of skills, personalities and behaviors of organization members. 18 www.exploreHR.org

Slide 19: Human Resources Systems Recruitment & Selection Training & Performance Business Business Development Management Result Strategy HR Systems Reward Career Management Management 19 www.exploreHR.org

Slide 20: Technology • Technology is concerned with the way an Technology organization converts inputs into products and services. • It represents the core of the transformation function and includes production methods, work flow and equipment. 20 www.exploreHR.org

Slide 21: Organizational-Level Diagnosis • 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 www.exploreHR.org

Slide 22: Organizational-Level Diagnosis Inputs Design Components Strategy Does the General organization Environment Structure Culture strategic Industry orientation fit Structure with the inputs? Technology Human Resources Systems 22 www.exploreHR.org

Slide 23: Organizational-Level Diagnosis Design Components Strategy Do the design Structure Culture components fit with each other? Technology Human Resources Systems 23 www.exploreHR.org

Slide 24: Group-Level Diagnosis 24 www.exploreHR.org

Slide 25: Group-Level Diagnosis Design Components Outputs Inputs Goal Clarity Group Task Team Organization Functioning Structure Effectiveness Design Group Group Composition Norms 25 www.exploreHR.org

Slide 26: Organization Design • Organization design is the major input to Organization group design. 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 www.exploreHR.org

Slide 27: Group Components Goal Clarity involves how well the group understand its objectives Task Structure is Group Functioning is the concerned with how the underlying basis of group life group’s work is designed Group Norms are member Group Composition beliefs about how the group concerns the membership of should perform task groups 27 www.exploreHR.org

Slide 28: Goal Clarity • Goal Clarity involves how well the group Goal understands its objectives. Clarity • 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. 28 www.exploreHR.org

Slide 29: Task Structure • Task Structure is concerned with how Task the group’s work is designed. Structure • Task structure can vary along two key dimensions : coordination of members’ effort and regulation of their task behavior. 29 www.exploreHR.org

Slide 30: Group Functioning • Group Functioning is the underlying Group basis of group life. Functioning • How members relate to each other is important in work groups because the quality of relationship can affect task performance. 30 www.exploreHR.org

Slide 31: Group Composition • Group composition concerns the Group membership of groups. Composition • 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. 31 www.exploreHR.org

Slide 32: Group Norms • Group Norms are member beliefs about Group how the group should perform task Norms • Norms derive from interaction among members and serve as guides to group behavior. 32 www.exploreHR.org

Slide 33: Group-Level Diagnosis • 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 www.exploreHR.org

Slide 34: Individual-Level Diagnosis 34 www.exploreHR.org

Slide 35: Individual-Level Diagnosis Design Components Outputs Inputs Skill Organization Variety Design Group Design Task Individual Task Significance Identity Effectiveness Personal Characteristics (skill, knowledge Feedback Autonomy attitude) 35 www.exploreHR.org

Slide 36: Individual-Level Diagnosis • Organization design is concerned with the Organization larger organization within which the Design individual job is the smallest unit. • Group design concerns the larger group Group or department containing the individual Design job. • Like organization design, group design is an essential part of the job context. 36 www.exploreHR.org

Slide 37: Individual-Level Diagnosis • Personal characteristics of individuals Personal occupying jobs include their age, Characteristics education, experience, and skills and abilities. • Personal characteristics can affect job performance as well as how people react to job designs. 37 www.exploreHR.org

Slide 38: Individual Jobs Dimensions Skill Variety Task Identity Autonomy Five Key Dimensions Feedback About Results Task Significance 38 www.exploreHR.org

Slide 39: Individual Jobs Dimensions Skill Variety The degree to which the job requires a variety of different activities Task Identity Autonomy The degree to which the job The degree to which a job requires completion of a provides freedom and discretion whole and identifiable piece in scheduling the work and of work determining work methods. Feedback About Results Task Significance The degree to which a job provides The degree to which a job has a employee with direct and clear significant impact on other information about the effectiveness of people’s lives task performance 39 www.exploreHR.org

Slide 40: Job Characteristics Model - Hackman/Oldham Core Job Psychological Personal and Dimension States Work Outcomes Experienced Skill Variety meaningfulness of Task Identity • High internal the wok Task Significance work motivation Experienced • High-quality work responsibility for performance Autonomy outcomes of the • High satisfaction work with the work • Low turnover Knowledge of the Feedback actual results of the work activities 40 www.exploreHR.org

Slide 41: Individual-Level Diagnosis • 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 www.exploreHR.org

Slide 42: Individual-Level Diagnosis • 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 www.exploreHR.org

Slide 43: Designing Effective Intervention 43 www.exploreHR.org

Slide 44: Intervention • A set of sequenced planned actions or events intended to help an organization increase its effectiveness. Intervention • Interventions purposely disrupt status quo; they are deliberate attempts to change an organization or subunit toward a different and more effective state. 44 www.exploreHR.org

Slide 45: Effective Intervention 1. The extent to which it fits the needs of Two Major the organization Criteria to Define an 2. The extent to which it transfer Effective change-management competence to Intervention organization members 45 www.exploreHR.org

Slide 46: Intervention Success Factors Capability of Readiness the Change Key Factors for Change Agent that can affect intervention success Capability to Cultural Change Context 46 www.exploreHR.org

Slide 47: Types of Intervention Human Process Intervention Structural Intervention Types of Intervention Human Resource Management Intervention Strategic Intervention 47 www.exploreHR.org

Slide 48: Examples of Human Process Intervention This intervention focuses on Process interpersonal relations and social Consultation dynamics occurring in work groups. This intervention helps work groups Team Building become more effective in accomplishing task 48 www.exploreHR.org

Slide 49: Examples of Structural Intervention This change process concerns the Structural Design organization’s division of labor – how to specialize task performances. This intervention reduces costs and Downsizing bureaucracy by decreasing size of the organization This intervention radically redesign the Reengineering organization’s core work process to create more responsive performance. 49 www.exploreHR.org

Slide 50: Examples of Human Resources Management Intervention This intervention is a systematic Performance process to link between corporate goal Management settings and reward systems. This intervention helps people choose Career Planning & career paths and attain career Development objectives. This intervention involves the design of Reward System organizational rewards to improve employee satisfaction and performance. 50 www.exploreHR.org

Slide 51: Examples of Strategic Intervention This intervention is a systematic Merger and process to integrate two or more Acquisition organizations. This intervention helps organizations Cultural Change develop cultures appropriate to their strategies and environment. This intervention seeks to enhance an Organizational organization’s capability to acquire and Learning deploy new knowledge. 51 www.exploreHR.org

Slide 52: Institutionalizing Interventions Effective Intervention Institutionalization Process Enhance Organization Performance 52 www.exploreHR.org

Slide 53: Factors Affecting Institutionalization Process Organization Characteristics: • Congruence • Stability • Unionization Institutionalization Process Intervention Characteristics: • Goal Specifity • Programmability • Level of Change Target • Internal Support • Sponsorship 53 www.exploreHR.org

Slide 54: Organization Characteristics: This is the degree to which an intervention is Congruence perceived as being in harmony with the organization’s strategy, and structure; its current environment; and other changes taking place. This involves the degree to which the Stability of organization’s environment and technology Environment and are changing. Technology 54 www.exploreHR.org

Slide 55: Organization Characteristics: Diffusion of interventions may be more Unionization difficult in unionized settings, especially if the changes affect unions contract issues, such as salary and fringe benefit, job design, and employee flexibility. 55 www.exploreHR.org

Slide 56: Intervention Characteristics: This involves the extent to which intervention Goal Specifity goals are specific rather than broad. This involves the degree to which the Programmability 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 www.exploreHR.org

Slide 57: Intervention Characteristics: This concerns the extent to which the change Level of target is the total organization, rather than a Change Target department or small work group. This refers to the degree to which there is an Internal internal support system to guide the change Support process. 57 www.exploreHR.org

Slide 58: Intervention Characteristics: This concerns the presence of a powerful Sponsorship sponsor who can initiate, allocate, and legitimize resources for the intervention. 58 www.exploreHR.org

Slide 59: Recommended 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 www.exploreHR.org

Slide 60: End of Material 60 www.exploreHR.org