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.

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cummings_odc_ch05_bb.pptx

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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4

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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9

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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