Diagnosing organizational effectiveness


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Diagnosing organizational effectiveness

  1. 1. 1www.exploreHR.orgDiagnosing OrganizationalDiagnosing OrganizationalEffectivenessEffectivenessA Roadmap toward Corporate SustainabilityA Roadmap toward Corporate Sustainability
  2. 2. 2www.exploreHR.orgContentsContents1. Comprehensive Model for Diagnosing Organizational Systems2. Organization-Level Diagnosis : Strategy, Structure, Culture,People and Technology3. Group-Level Diagnosis : Group Dynamics and GroupPerformance4. Individual-Level Diagnosis : Employee Satisfaction andPerformance5. Designing Effective Organization InterventionIf you find this presentation useful, please consider telling othersabout our site (www.exploreHR.org)(www.exploreHR.org)
  3. 3. 3www.exploreHR.orgComprehensive Model forComprehensive Model forDiagnosing Organizational SystemsDiagnosing Organizational Systems
  4. 4. 4www.exploreHR.orgWhat is Diagnosis?What is Diagnosis?• Diagnosis is the process of understanding how theorganization is currently functioning, and it providesinformation necessary to design change interventions.• It is also a collaborative process between organizationmembers and the OD (organization development)consultant to collect pertinent information, analyze it, anddraw conclusions for action planning and intervention.
  5. 5. 5www.exploreHR.orgHigh Politics Organization:High Politics Organization:Common Approach to Business ProblemsCommon Approach to Business ProblemsDOES THE THING WORK?DON’T MESSWITH ITDID YOU MESS WITH IT?YOU DUMB*#@>!!DOES ANYONEKNOW?WILL YOUCATCH HELL?HIDE ITTRASH ITYOU POOR$#@! ~*%$CAN YOU BLAME SOMEONE ELSE?NO PROBLEMYES NOYESNONOYES YESYESNO
  6. 6. 6www.exploreHR.orgA. ORGANIZATIONAL LEVELB. GROUP LEVELC. INDIVIDUAL LEVEL- GeneralEnvironment- IndustryStructureInputs Design ComponentsOrganizationEffectivenessOutputsStrategyStructure CultureHumanResourcesTechnology- OrganizationDesignInputs Design ComponentsTeamEffectivenesse.g., quality ofwork life,performanceOutputsGoal ClarityTaskStructureGroupFunctioningGroupCompositionGroupNorms- OrganizationDesign- Group Design- PersonalCharacteristicsInputs Design ComponentsIndividualEffectivenesse.g., jobsatisfaction,personaldevelopmentOutputsSkill VarietyTask Identity AutonomyTaskSignificanceFeedbackabout ResultsComprehensive Model for Diagnosing OrganizationComprehensive Model for Diagnosing Organization
  7. 7. 7www.exploreHR.orgOrganizational-LevelOrganizational-LevelDiagnosisDiagnosis
  8. 8. 8www.exploreHR.orgOrganizational-Level DiagnosisOrganizational-Level DiagnosisCultureTechnologyHumanResourcesSystemsStructureStrategyOrganizationEffectivenessGeneralEnvironmentIndustryStructureInputs Design Components Outputs
  9. 9. 9www.exploreHR.orgGeneral EnvironmentGeneral EnvironmentGeneralGeneralEnvironmentEnvironment• The general environment represent theexternal elements and forces that canaffect the attainment of organizationobjectives.• It can be described in terms of amount ofuncertainty present in social,technological, economic, ecological, andpolitical forces.
  10. 10. 10www.exploreHR.orgFive Forces of Industry StructureFive Forces of Industry StructureSupplierSupplierPowerPowerThreatsThreatsof Entryof EntryBuyerBuyerPowerPowerThreats ofThreats ofSubstitutesSubstitutesRivalryRivalryamongamongCompetitorsCompetitorsIndustryIndustryStructureStructure
  11. 11. 11www.exploreHR.orgStrategyStrategyStrategyStrategy• A strategy represent the way anorganization uses its resources to gainand sustain a competitive advantage.• It can be described by the organization’smission, goals and objectives, strategicintent, and functional policies.
  12. 12. 12www.exploreHR.orgMission –Why WeExistVision –What WeWant to BeValues –What’sImportantto UsStrategy :Our GamePlanStrategy Map :Translate theStrategy intoActionStrategy FormulationStrategy FormulationAnalysis ofGeneralEnvironmentand IndustryStructureAnalysis ofOrganization’sCoreCompetence
  13. 13. 13www.exploreHR.orgStrategy :Our GamePlanStrategyMap :Translatethe StrategyStrategicOutcomesSatisfiedShareholdersDelightedCustomersExcellentProcessesMotivatedWorkforceStrategy FormulationStrategy Formulation
  14. 14. 14www.exploreHR.orgStructureStructureStructureStructure• The structural system describes howattention and resources are focused ontask accomplishment.• It represents the basic organizing modechosen to (1) divide the overall work ofan organization into subunits that canassign task to individuals and groupsand (2) coordinate these subunits forcompletion of the overall work.
  15. 15. 15www.exploreHR.orgCultureCultureCultureCulture• Organization culture represents thebasic assumptions, values, and normsshared by organization members.• It orients employees to company goalsand suggests the kinds of behaviorsnecessary for success.
  16. 16. 16www.exploreHR.orgElements of Corporate Culture FormationElements of Corporate Culture FormationTopManagementViewOrganizationSystem andPolicyIndustryCharacteristicsOrganizationStructureProfile ofEmployeesCorporate CultureCorporate Culture
  17. 17. 17www.exploreHR.orgHuman Resources SystemsHuman Resources SystemsHumanHumanResourcesResourcesSystemsSystems• Human resources systems includemechanism for selecting, developing,appraising and rewarding organizationmembers.• HR systems influence the mix of skills,personalities and behaviors oforganization members.
  18. 18. 18www.exploreHR.orgRecruitment &SelectionTraining &DevelopmentPerformanceManagementRewardManagementCareerManagementHRSystemsBusinessBusinessStrategyStrategyBusinessBusinessResultResultHuman Resources SystemsHuman Resources Systems
  19. 19. 19www.exploreHR.orgTechnologyTechnologyTechnologyTechnology• Technology is concerned with the wayan organization converts inputs intoproducts and services.• It represents the core of thetransformation function and includesproduction methods, work flow andequipment.
  20. 20. 20www.exploreHR.orgOrganizational-Level DiagnosisOrganizational-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, humanresources systems, and technology?
  21. 21. 21www.exploreHR.orgOrganizational-Level DiagnosisOrganizational-Level DiagnosisCultureTechnologyHumanResourcesSystemsStructureStrategyGeneralEnvironmentIndustryStructureInputsInputs Design ComponentsDesign ComponentsDoes theDoes theorganizationorganizationstrategicstrategicorientation fitorientation fitwith thewith theinputs?inputs?
  22. 22. 22www.exploreHR.orgOrganizational-Level DiagnosisOrganizational-Level DiagnosisCultureTechnologyHumanResourcesSystemsStructureStrategyDesign ComponentsDesign ComponentsDo the designDo the designcomponentscomponentsfit with eachfit with eachother?other?
  23. 23. 23www.exploreHR.orgGroup-Level DiagnosisGroup-Level Diagnosis
  24. 24. 24www.exploreHR.orgGroupFunctioningGroup-Level DiagnosisGroup-Level DiagnosisGroupNormsGroupCompositionTaskStructureGoalClarityOrganizationDesignTeamEffectivenessInputsInputs Design ComponentsDesign Components OutputsOutputs
  25. 25. 25www.exploreHR.orgOrganization DesignOrganization DesignOrganizationDesign• Organization design is the major input togroup design.• It consists of the design componentscharacterizing the larger organizationwithin which the group is embedded :technology, structure, human resourcessystems and organization culture.
  26. 26. 26www.exploreHR.orgGroup Functioning is theunderlying basis of group lifeGroup Norms are memberbeliefs about how the groupshould perform taskGroup Compositionconcerns the membership ofgroupsTask Structure isconcerned with how thegroup’s work is designedGoal Clarity involves howwell the group understand itsobjectivesGroup ComponentsGroup Components
  27. 27. 27www.exploreHR.org• Goal Clarity involves how well the groupunderstands its objectives.• In general, goals should be moderatelychallenging; there should be a method ofmeasuring, monitoring and feeding backinformation about goal achievement.• The goals should be clearly understoodby all members.Goal ClarityGoal ClarityGoalClarity
  28. 28. 28www.exploreHR.org• Task Structure is concerned with howthe group’s work is designed.• Task structure can vary along two keydimensions : coordination of members’effort and regulation of their taskbehavior.Task StructureTask StructureTaskStructure
  29. 29. 29www.exploreHR.org• Group Functioning is the underlyingbasis of group life.• How members relate to each other isimportant in work groups because thequality of relationship can affect taskperformance.Group FunctioningGroup FunctioningGroupFunctioning
  30. 30. 30www.exploreHR.org• Group composition concerns themembership of groups.• Members can differ on a number ofdimensions having relevance to groupbehavior.• Demographic variables such as ageeducation, and job experience, canaffect how people behave and relate toeach other in groups.Group CompositionGroup CompositionGroupComposition
  31. 31. 31www.exploreHR.org• Group Norms are member beliefs abouthow the group should perform task• Norms derive from interaction amongmembers and serve as guides to groupbehavior.Group NormsGroup NormsGroupNorms
  32. 32. 32www.exploreHR.orgGroup-Level DiagnosisGroup-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 thegroup?
  33. 33. 33www.exploreHR.orgIndividual-LevelIndividual-LevelDiagnosisDiagnosis
  34. 34. 34www.exploreHR.orgTaskSignificanceFeedbackAutonomyTaskIdentitySkillVarietyOrganizationDesignGroup DesignPersonalCharacteristics(skill, knowledgeattitude)IndividualEffectivenessIndividual-Level DiagnosisIndividual-Level DiagnosisInputsInputs Design ComponentsDesign Components OutputsOutputs
  35. 35. 35www.exploreHR.orgOrganizationOrganizationDesignDesign• Organization design is concerned withthe larger organization within which theindividual job is the smallest unit.• Group design concerns the larger groupor department containing the individualjob.• Like organization design, group design isan essential part of the job context.GroupGroupDesignDesignIndividual-Level DiagnosisIndividual-Level Diagnosis
  36. 36. 36www.exploreHR.orgPersonalPersonalCharacteristicsCharacteristics• Personal characteristics of individualsoccupying jobs include their age,education, experience, and skills andabilities.• Personal characteristics can affect jobperformance as well as how people reactto job designs.Individual-Level DiagnosisIndividual-Level Diagnosis
  37. 37. 37www.exploreHR.orgIndividual Jobs DimensionsIndividual Jobs DimensionsFive KeyFive KeyDimensionsDimensionsAutonomyFeedback About ResultsTask SignificanceTask IdentitySkill Variety
  38. 38. 38www.exploreHR.orgIndividual Jobs DimensionsIndividual Jobs DimensionsAutonomyThe degree to which a jobprovides freedom and discretionin scheduling the work anddetermining work methods.Feedback About ResultsThe degree to which a job providesemployee with direct and clearinformation about the effectiveness oftask performanceTask SignificanceThe degree to which a job has asignificant impact on otherpeople’s livesTask IdentityThe degree to which the jobrequires completion of awhole and identifiable pieceof workSkill VarietyThe degree to which the jobrequires a variety of differentactivities
  39. 39. 39www.exploreHR.orgJob Characteristics Model - Hackman/OldhamJob Characteristics Model - Hackman/OldhamCore JobDimensionSkill VarietyTask IdentityTask SignificanceAutonomyFeedbackPsychologicalStatesPersonal andWork OutcomesExperiencedmeaningfulness ofthe wokExperiencedresponsibility foroutcomes of theworkKnowledge of theactual results ofthe work activities• High internalwork motivation• High-quality workperformance• High satisfactionwith the work• Low turnover
  40. 40. 40www.exploreHR.orgIndividual-Level DiagnosisIndividual-Level Diagnosis• What is the design of the larger organization withinwhich the individual jobs are embedded?• What is the design of the group containing theindividual job?• What are the personal characteristics ofjobholders?
  41. 41. 41www.exploreHR.orgIndividual-Level DiagnosisIndividual-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 thejobs?• How much autonomy is included in the jobs?• How much feedback about results do the jobscontain?
  42. 42. 42www.exploreHR.orgDesigning EffectiveDesigning EffectiveInterventionIntervention
  43. 43. 43www.exploreHR.org• A set of sequenced planned actionsor events intended to help anorganization increase itseffectiveness.InterventionInterventionIntervention• Interventions purposely disruptstatus quo; they are deliberateattempts to change an organizationor subunit toward a different andmore effective state.
  44. 44. 44www.exploreHR.org1. The extent to which it fits the needsof the organization2. The extent to which it transferchange-management competence toorganization membersEffective InterventionEffective InterventionTwo MajorCriteria toDefine anEffectiveIntervention
  45. 45. 45www.exploreHR.orgIntervention Success FactorsIntervention Success FactorsKey Factorsthat can affectinterventionsuccessReadinessfor ChangeCapabilityto ChangeCapability ofthe ChangeAgentCulturalContext
  46. 46. 46www.exploreHR.orgTypes of InterventionTypes of InterventionHuman ProcessInterventionTypes ofTypes ofInterventionInterventionStructuralInterventionHuman ResourceManagement InterventionStrategicIntervention
  47. 47. 47www.exploreHR.orgProcessProcessConsultationConsultationExamples ofHuman Process InterventionTeam BuildingTeam BuildingThis intervention focuses oninterpersonal relations and socialdynamics occurring in work groups.This intervention helps work groupsbecome more effective inaccomplishing task
  48. 48. 48www.exploreHR.orgStructural DesignStructural DesignExamples ofStructural InterventionDownsizingDownsizingThis change process concerns theorganization’s division of labor – how tospecialize task performances.This intervention reduces costs andbureaucracy by decreasing size of theorganizationReengineeringReengineering This intervention radically redesign theorganization’s core work process tocreate more responsive performance.
  49. 49. 49www.exploreHR.orgPerformancePerformanceManagementManagementExamples ofHuman ResourcesManagement InterventionCareer Planning &Career Planning &DevelopmentDevelopmentThis intervention is a systematicprocess to link between corporate goalsettings and reward systems.This intervention helps people choosecareer paths and attain careerobjectives.Reward SystemReward System This intervention involves the design oforganizational rewards to improveemployee satisfaction and performance.
  50. 50. 50www.exploreHR.orgMerger andMerger andAcquisitionAcquisitionExamples ofStrategic InterventionCultural ChangeCultural ChangeThis intervention is a systematicprocess to integrate two or moreorganizations.This intervention helps organizationsdevelop cultures appropriate to theirstrategies and environment.OrganizationalOrganizationalLearningLearningThis intervention seeks to enhance anorganization’s capability to acquire anddeploy new knowledge.
  51. 51. 51www.exploreHR.orgInstitutionalizing InterventionsInstitutionalizing InterventionsEffectiveInstitutionalizationProcessInterventionEnhanceOrganizationPerformance
  52. 52. 52www.exploreHR.orgFactors Affecting Institutionalization ProcessFactors Affecting Institutionalization ProcessOrganizationCharacteristics:• Congruence• Stability• UnionizationInterventionCharacteristics:• Goal Specifity• Programmability• Level of Change Target• Internal Support• SponsorshipInstitutionalizationProcess
  53. 53. 53www.exploreHR.orgOrganizationCharacteristics:CongruenceThis is the degree to which an intervention isperceived as being in harmony with theorganization’s strategy, and structure; itscurrent environment; and other changestaking place.Stability ofEnvironment andTechnologyThis involves the degree to which theorganization’s environment and technologyare changing.
  54. 54. 54www.exploreHR.orgOrganizationCharacteristics:UnionizationDiffusion of interventions may be moredifficult in unionized settings, especially if thechanges affect unions contract issues, suchas salary and fringe benefit, job design, andemployee flexibility.
  55. 55. 55www.exploreHR.orgInterventionCharacteristics:Goal SpecifityThis involves the extent to which interventiongoals are specific rather than broad.ProgrammabilityThis involves the degree to which thechanges can be programmed or the extent towhich the different intervention characteristicscan be specified early in advance to enablesocialization, commitment, and rewardallocation.
  56. 56. 56www.exploreHR.orgInterventionCharacteristics:Level ofChange TargetThis concerns the extent to which the changetarget is the total organization, rather than adepartment or small work group.InternalSupportThis refers to the degree to which there is aninternal support system to guide the changeprocess.
  57. 57. 57www.exploreHR.orgInterventionCharacteristics:SponsorshipThis concerns the presence of a powerfulsponsor who can initiate, allocate, andlegitimize resources for the intervention.
  58. 58. 58www.exploreHR.orgRecommended Further ReadingsRecommended Further Readings1. Thomas Cummings and Christopher Worler, Organization Developmentand Change, South Western College Publishing2. Stephen Robbins, Organizational Behavior, Prentice Hall3. Marvin Ross Weisbor, Organizational Diagnosis : A Workbook of Theoryand Practice, Perseus Books Group
  59. 59. 59www.exploreHR.orgEnd of Material