Questions for the following articles: Your answers should be typewritten and handed in class on Monday. Refer to the general and task environmental factors discussed in chapter 5 and identify which ones are applicable to McDonalds and Sears.
Diagnosing
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CHAPTER
Chapter Outline
Philosophy and purpose of diagnosis
Role of diagnostic models in OD
Open-systems model.
Levels of diagnostic processes.
Organization
Group
Individual
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Diagnosis
What?
Collaboration
collect pertinent information, analyze it, and draw conclusions for action planning and intervention.
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The Open Systems Model
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INPUTS
Information
Energy
TRANSFORMATIONS
Social Component
Technological Component
OUTPUTS
Finished Goods
Services
Ideas
FEEDBACK
ENVIRONMENT
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Properties of Systems
Environments
Inputs, Transformations, and Outputs
Boundaries
Feedback
Alignment
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Diagnosing Organizational Systems
The key to effective diagnosis is…
Know what to look for at each organizational level
Recognize how the levels affect each other
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Organization Effectiveness
e.g. performance, productivity, stakeholder satisfaction
General Environment
Task Environment
Enacted Environment
Organization-Level Diagnostic Model
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Inputs
Design Components
Outputs
Strategy
Culture
Technology
Structure
Human Resources Systems
Management Processes
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Diagnosing Organizational Systems Environments
General Environment
Mostly indirect impact
Affects all organizations
Government, natural, socio-cultural, economic, technology, financial
Task Environment
Direct impact
Industry, suppliers, consumers, competitors (Porter’s 5 forces)
Enacted Environment
Employees’ perception & representation of general & task environments
Implications for decision making
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Organization Effectiveness
e.g. performance, productivity, stakeholder satisfaction
General Environment
Task Environment
Enacted Environment
Organization-Level Diagnostic Model
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Inputs
Design Components
Outputs
Strategy
Culture
Technology
Structure
Human Resources Systems
Management Processes
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Group-Level Diagnostic Model
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Organization Design
Culture
Team Effectiveness
e.g. quality of work life, performance
Design Components
Outputs
Inputs
Group Norms
Task Structure
Goal Clarity
Team Functioning
Group Composition
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Individual-Level Diagnostic Model
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Organization Design
Culture
Group Design
Personal Characteristics
Individual Effectiveness
e.g. job satisfaction, performance, absenteeism, personal development
Inputs
Design Components
Outputs
Task Identity
Skill Variety
Autonomy
Task Significance
Feedback about Results
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Organization Environments and Inputs
Environmental Types
General Environment
Task Environment and Industry Structure
Enacted Environment
Environmental Dimensions
Rate of Change and Complexity
Information Uncertainty
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Organization Design Components
Strategy
The way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage
Technology
The way an organization converts inputs into products and services
Structure
The way an organization divides and coordinates work into and across subunits which assign tasks to groups or individuals
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Organization Design Components
Human Resource Systems
The mechanisms for selecting, developing, appraising, and rewarding organization members
Culture
The basic assumptions, values and norms shared by organization members
Represents both an “outcome” of organization design and a “foundation” or “constraint” to change
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Organization-Level Outputs
Outputs are measures of how well the design contributes to organization effectiveness on three kinds of outcomes.
Organization Performance
Profits, profitability, stock price
Productivity
Cost/employee, cost/unit, error rates, quality
Stakeholder Satisfaction
Market share, employee satisfaction, regulation compliance, sustainability
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Alignment
Diagnosis involves understanding each of the parts in the model and then assessing how the elements of the strategic orientation align with each other and with the inputs
Organization effectiveness is likely to be high when there is good alignment
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Key Alignment Questions
Does the organization’s strategy fit with the inputs?
Do the organization design components fit with each other to jointly support the strategy?
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