Diagnosing organizationsMethods, models, and processesMichael I. Harrison2005 3rd. EditionISBN 978-0-7619-2572-9

Presentation of key concepts and logicPrepared by Daniel DegravelJuly 2009

Ch 01 Diagnosis: approaches and methods01.1IX Objective of textbook: How diagnosis can help managers and consultants to act quickly and flexibly to meet the challenges of uncertain environmentsIX Diagnosis is crucial for organizations because of organizational problems and challenges such as competition, turbulence of environment, change management, reorganizations, improvements in productivity, competitiveness , and quality, risk of imitation of fashionable management techniquesIntroduction134 Diagnosis = helping people find whats going on in their organization and why, changing web of relations, serving the owner who may be ambivalent about receiving help, dealing with people who may be dead-set against the diagnosis, sorting among diagnosis constraints and a tangle of compelling obligations, values, and professional standards

4 Diagnosis understands the nature and causes of the problems or challenges initially presented by owner, identifies additional organizational issues,, and seeks ways to solve these problems and improve organizational effectiveness

Ch 01 Diagnosis: approaches and methods01.24 Why a diagnosis?

1- Because issues or problems

2- Because will to reduce gap between current and desired organizational state3 Some problems1- Poor quality, delay, crisis, ineffectiveness2- Declining demand and revenues, customer satisfaction, criticism by stakeholders3- Human resource issues (high turn-over, stress, low morale)4- Radical external changes5- Major transitions for firm (from public to private, family to professionally managed, mergers, major reorganization)6- Difficulties in implementing complex projects (new technologies, new product development, reorganization)Why a Diagnosis?

01.3Ch 01 Diagnosis: approaches and methods3- Because need for change5-6 Organizational Development OD5 OD = a set of techniques and methods to apply behavioral science to the planned development and reinforcement of strategies, structures, and processes for effectivenessDiagnosis is a form of intervention because influences organization

1- HR: changing skills, attitudes, and values through training; recruitment, counseling, and placement; stress management and health-maintenance2- Behavior and processes: changing interaction processes (decision-making, communication, and leadership) through training, team building, process consultation, third-party intervention, and feedback of data)3- Structure and technologies: jobs design, rewards, administrative procedures, division of labor, coordinating mechanisms, and job procedures4- Goals, strategies, and culture: goal and strategy clarification through workshops, exercises; facilitating ties within organization; examining and changing corporate culture7-8 Business Oriented Project BOP5 BOP = a set of techniques and methods to improving economic performance and competitive advantages. Rely more on specific fields, such as business, and engineering

Why a Diagnosis?

01.4Ch 01 Diagnosis: approaches and methods11 Diagnosis

1- AppliedFocuses on readily changeable factors that affect issue or condition, even if they do not explain most of variance and are not the most important or interesting

2- Participation Encourages participation of members

3- MethodsOften less sophisticated and complex research design and methodsRely more on hunches, intuition, experience, and on scientific methods

4- NeutralityCannot stay neutral about impact of study on organization and its members

Characteristics of Diagnosis

Ch 01 Diagnosis: approaches and methods01.5Three critical dimensions of diagnosis:

1- Process12 Set of tasks and steps in diagnosis

2- Modeling15 Theories and models in background as foundation of diagnosis

3- Methods19-20 Practical methods and techniques collect and analyze informationThree dimensions of a Diagnosis

Ch 01 Diagnosis: approaches and methods01.6Process

12 Stepsa-Entryb-Contractingc-Study designd-Data gatheringe-Analysisf-Feedback to firmThree dimensions of a Diagnosis13 Critical process issuesa-Purpose of diagnosisb-Design (who, where, what, when)c-Support and cooperation (whos client, responsible, support? )d-Participation (other members)e-Analysisf-Feedback (when, how, to whom, and what use of results?)

Ch 01 Diagnosis: approaches and methods01.715-18 Modeling

1- Standardized models2- Customized modelsThree dimensions of a Diagnosis16 Diagnostic questions related to the initial issuea-Interpreting initial statement of problemb-Redefining problemc-Understanding the current state of the organization/situationd-Identifying forces against and for changee-Developing workable solutions

Ch 01 Diagnosis: approaches and methods01.817-18 ModelingThree dimensions of a Diagnosis16 Level of analysis

Industry

Organization

Division

Department

Group (team, small work unit)

Individual17 DeterminantsNature of issueGoal of diagnosisOrganizational position of client18 Scope of analysis

Scope is number of variables studiedThe larger the scope, the smaller the level of detail, and conversely

Ch 01 Diagnosis: approaches and methods01.919 Methods

Standards of scientific inquiry-Reliable-Valid (replicable)

Observation better than interview

Three dimensions of a Diagnosis

Ch 01 Diagnosis: approaches and methods01.1020 Methods

Three research designs:Three dimensions of a DiagnosisA-Measure of dimensions or criteria for comparison between units of analysisClient satisfaction, organizational climate, personnel turn-over, costs, and sales

B-Isolate causes or determinants of a phenomenon (e.g. organizational issue or desirable outcome) through multivariate analysis of dataImpact of work quality on employee satisfaction, variables determinants of organizational innovation

C-Understand and measure subtle and complex organizational phenomenon, generally in a limited setting, through the gathering of in-depth data and their analysis with inductive forms of inferenceMembers perceptions, hidden assumptions, work styles, and underground interactions

Ch 01 Diagnosis: approaches and methods01.1121-22 Methods for gathering data

QuestionnaireInterviewsObservationsAvailable records and dataWorkshops and group discussionThree dimensions of a Diagnosis

Diagnosis01.12Plan of bookACDifferentiatorsOpen systemsCh 01 Diagnosis: approaches and methodsOrganizational Fits and internal politicsIndividual and group behaviorsEnvironmental relations and strategyBDDiagnosis is envisioned according different perspectives, in which the focal point variesThe open system framework is used as a general guide for all four perspectives

Diagnosis01.13Wrapping upCh 01 Diagnosis: approaches and methodsOrganizational Fits and internal politics Ch04(organizational situations at the level of macro variables and internal politics)Open systems model Ch02 (general approach with many variables)ProcessFramingMethodSteps of analysisDefining problem, analyzing resultsModels of collect and analysisDefinition of scope and topicsHigh value dimensionMethod for collect and analysis to ensure reliabilityResearch designAssessing individual and group behavior Ch03(organizational situations at the level of the individual and the group)Environmental relations Ch05(organizational relations with its environment, e.g. marketing and strategic relations)3 FUNDAMENTAL DIMENSIONS4 PERSPECTIVES

01.14A mapCh 01 Diagnosis: approaches and methodsOrganizational Fits and internal politics Ch04(organizational situations at the level of macro variables and internal politics)Open systems model Ch02 (general approach with many variables)Assessing individual and group behavior Ch03(organizational situations at the level of the individual and the group)Environmental relations Ch05(organizational relations with its environment, e.g. marketing and strategic relations)12 Phases in diagnosis13 Critical process issues16 Diagnostic questions21-22 Table 1.1 Comparison of methods for gathering diagnostic dataIntroduction28 Figure 2.1 Organizations as open models34-35 Basic organizational information39 Assessing effectiveness five topics40-41 Table 2.1 Effectiveness criteria56 Figure 3.1 Model for diagnosing individual and group behavior62 Figure 3.2 Action model for group task performance77-78 Examples of problems80 Figure 4.1 Diagnosis system fits82-84 Questions about fits85 Design tools to consider during diagnosis99-100 Table 4.2 Who is powerful?106-109 Six diagnostic guidelines110 Figure 5.1 Model for strategy formulation113 OSP instructions to participants in the planning process115-116 Interview guideA 137-141 General orientation interviewB 143-146 Instruments for diagnosis and assessmentC 147-149 A guide to diagnosing behavior during meetingsD 151-153 Resources for developing expertise in diagnosisAppendixes

Ch 02 Open systems models02.1The open systems model provides a representation of the firm that guides diagnosis at different levels in the organization. In this representation, the comparison output input is a key featureIntroductionOutline

1- Model2- Model and diagnosis3- Organizational data 4- Processing and analyzing information5- Assessing effectiveness6- Assessing feasibility of change

Ch 02 Open systems models02.2ModelBehavior and processes; tasks and activitiesTechnologyInputs (resources)OutputsEnvironment-Task-GeneralStructureCulturep.27The open systems model organizes several components and their relationships

Ch 02 Open systems models02.3ModelSystems componentsp.27-29

1- Inputs2- Outputs3-Organizational behavior and processes4-Technology5-Environment6-Structure7-Culture8-System dynamics

Ch 02 Open systems models02.4Model and diagnosisPrinciples 1/2Systems features

1- Model can be applied at different levels of organization (when focus is small units, other units belong to its environment)2- Organization can be described as composed on inter-dependent components or sub-systems5- Organization can produce some of its own inputs8- Organization and environment change in a connected relationship

Ch 02 Open systems models02.5Model and diagnosisPrinciples 2/2Effectiveness and success

3- Fit across components is critical for effectiveness4- Positive relationship between system and its environment is critical for effectiveness (adapt, shape, and find)6- People are a critical resource for success7- The recipe for success is ability to meet internal system needs and adaptation to environment

Ch 02 Open systems models02.6Model and diagnosisPrinciplesUse of diagnosis

1- Integrate all variables, and not only a narrow component

2- SWOT analysis

3- Success factors main contain unrealized potential

4- Break out of familiar ways to interpret problems

Ch 02 Open systems models02.7Organizational data1- Background of diagnosis2- Outputs3- Goals and strategies4- Inputs5- Environment6- Technology and work processes; activities7- Structure8- Behavior and processes9- Culture and cognition10- Systems dynamicsData to be collectedp.34-36

Ch 02 Open systems models02.8Processing and analyzing informationValidity of results

p.36-37

Non rigorous measures are often used

Assessment of complex situations

Awareness of impact of respondents views and experience on results

To make data more valid: Inter-interviews comparison; narratives of organization history; successes and failures; comparison with ostensible objective of phenomena; multiple gathering methods

Ch 02 Open systems models02.9Processing and analyzing informationMethods

p.37-38

Groupings of answers

Qualitative analysis

Presentation of entire set of responses to stimulate analysis

Interactions between system components

Ch 02 Open systems models02.10Assessing effectivenessIntroduction

Effectiveness is multidimensional and difficult to measure

Five elements: (detailed Table 2.1 p.40-41)

1-Assessment approach

2-Domains (set of conceptually related criteria)

3-Criteria

4-Operational definitions and measures

5-Standards for analysis and evaluation

Ch 02 Open systems models02.11Assessing effectivenessElements

1-Assessment approach

2-Domains (set of conceptually related criteria)

3-Criteria

Underlying approach and assumptionsOutput-goals; Internal system states; system resources and adaptation; multiple stakeholders Sets of criteria in relationshipsConflicting criteria Sets of criteria

Ch 02 Open systems models02.12Assessing effectivenessElements

4-Operational definitions and measures

5-Standards for analysis and evaluationCriterion and operational measureClarification of criterion, and identification of indicators, and operational measuresFor stakeholder approach, multiple answers varying with conception of effectiveness Standard necessary, as time frame and feedbackCurrent vs. past; Internal benchmarking of effectiveness; outside benchmarking; current vs. minimum standard; current vs. ideal standard

Ch 02 Open systems models02.13Assessing effectivenessChoices

p.45-47

Choices have to be made regarding the appropriateness of criteria with the organization, with its goals and settings, and with the issue to solveAssessment of ineffectiveness generates often more consensus

Ch 02 Open systems models02.14Assessing feasibility of changeIf change is at stake

Questions to consider:

Incremental or radical change? (experimental change first)Organization is ready?How will stakeholders react? (past reactions)Does organization have capacities to change?Will change produce the results without negative consequences?

Ch 02 Open systems models02.15Appendix A General orientation InterviewGeneral interview to better know an organizational unit

p.137-141 In Appendix A, each item is detailed

1-Person and job Individual level 2-Group level Roles, technology, outputs3-Groups structures and processes Goals, control, coordination Group and organization levels4-Internal environment Relations across units GOL5-External environment Relations, history, and dynamics GOL6-Structure GOL7-Processes Group level8-Culture and processes GOL9-Culture and goals GOL10-Problems and challenges GOL11-Individual satisfaction Individual level

Ch 03 Assessing individual and group behavior03.1IntroductionAssessing individual and group behavior and their impact on organizational effectiveness

Model provides forces and outcomes to examine in diagnosis

Ch 03 Assessing individual and group behavior03.2A ModelORGANIZATIONAL LEVEL

GROUP LEVEL

INDIVIDUAL LEVELGroup composition, structure, and technologyIndividual job, and tasksGoals, structure, culture, technology behavior, and processesGroup behavior processes, cultureIndividual behavior, attitudes, orientationsEffectivenessEffectivenessEffectivenessQWL, Well-beingResourcesResourcesHuman resources

Ch 03 Assessing individual and group behavior03.3EffectivenessHow to measure effectiveness?GROUP LEVELOutput criteriaKey goods or service produced by the group, and measure of quantity and quality over time

INDIVIDUAL LEVELMembers efforts, initiative, cooperation, absenteeism, lateness, commitment to job, Quality of work life and well-being []

Ch 03 Assessing individual and group behavior03.4EffectivenessWhich factors affect individual and group effectiveness?GROUP LEVELEmployees expectations and understandings; attitudes and perceptions about organizational debatesGroup composition, structure (reward system, communication, cooperation and conflict, decision-making, supervisory behavior, groups norms and beliefsTechnology

INDIVIDUAL LEVELMembers characteristics such as education, design of job, motivation, attitude to organizational actions

BOTH LEVELSStrategies, standards, and goalsCulture

Ch 03 Assessing individual and group behavior03.5EffectivenessAnalysis of HRM programsHRM program shape skills, knowledge, attitude, and behavior of employees (p.60)

StaffingCompensationLabor relationsWork environment

Goal settingPlanningJob analysisEvaluation and performance assessment

Ch 03 Assessing individual and group behavior03.6EffectivenessAnalysis of group task performanceThe analysis here focuses only on organizational and group conditions that serve as levers to improve task performance of a group; these conditions can enable to make a diagnosis and build new work groups

Three critical processes are examined, which pose major hurdles to effective group performance:

1- Joint effort to do well2- Bringing in adequate skills and knowledge3- Using task performance that fits the work and cultural and organizational settings in which the work is done

Ch 03 Assessing individual and group behavior03.7EffectivenessAnalysis of group task performance: model of analysis (p.62)Organizational contextGoals, reward, information, trainingGroup design and cultureTasks, composition, normsOutside helpOther groups, consultant, coachMaterial and technical resourcesCritical group processes1-Effort2-Task performance strategies3-Knoweldge and skillsPerformance (output)

Ch 03 Assessing individual and group behavior03.8Methods and processesThe design and the administration of a diagnosis of forces affecting individual and group performanceDesigning study-What to study?Central topic, data

-Which sample?Representativeness of data

-How to administer the study?Gathering, storing, and analyzing data must promote validity

Ch 03 Assessing individual and group behavior03.9Methods and processesThe design and the administration of a diagnosis of forces affecting individual and group performanceMeasurement and data-gathering techniques-Analyzing available data

-Interviews

-Self-administered questionnaires

-Standardized instrumentsMOAQ, QWL, OAI

-Observations

Ch 03 Assessing individual and group behavior03.10Methods and processesThe design and the administration of a diagnosis of forces affecting individual and group performanceAnalysis-Non-statistical dataAnalyzed with diagramsVisual models

-Feedback to the owner of the study

Ch 04 System fits and organizational politics04.1IntroductionAssessing fit among system components and between current system features and organizational goals and strategyUncovering organizational conditions that can undermine or enhance effectiveness in entire divisions or organizations, using the open systems model

77 Fit = congruence = alignment = the extent to which the behavioral or organizational requirements and constraints in one part of the system are compatible with those in other parts

Chapter analyzes:-Fit among organizational design that managers can influence-Organizational power and politics

Macro system features often create latent conditions77 List of internal problems that reflect poor fit among organizational features []78 List of external problems that reflect poor fit among organizational features []

Ch 04 System fits and organizational politics04.2DiagnosisDiagnosis of system fitsTypes of fitsFITFit related to problem or challengeFit related to system features that are to be redesignedComprehensive diagnosisFit among different system levels (individual, group, organization)

Ch 04 System fits and organizational politics04.3Diagnosis80 Diagnosis of system fits: processInputs-problems-prior findings-modelsChoose Fit-level-system elements, subcomponentsChoose effectiveness criteriaAssess degree of fit-needs of units, system parts-conflicts and tensions-actual vs. official practices-organization design modelsDesign study and gather data-research design-methods-data collectionAssess impact-negative-positive-loose couplingSummary and feedbackWays to choose fits Compatibility of requirements, needs, or procedures in parts of systemWhether participants feel subject to conflicting expectations or pressuresWhether system components fit together in ways organizational research suggests they would

04.4Ch 04 System fits and organizational politicsDiagnosis82-84 Checklist of important fitsEnvironmentInternal systems; demand

Human resourcesSystems processing; goals and strategies

Goals and strategiesEnvironment; resources; behavior and processes; culture

TechnologyEnvironment; behavior and processes; structure; culture

Internal systemsEnvironment

StructureTechnology; behavior and processes; environment; Human resources

Behavior and processesCulture; environment

Focal areaFit with

04.5Ch 04 System fits and organizational politicsDiagnosis85 Design tools to consider during diagnosisContractual arrangements, network ties, and alliances

Structural groupings of positions and units

Positions and procedures that monitor the environment

Job designs

Human resource programs

Management information systems

Mechanisms for coordination internal and external relationships among positions or units

Procedures for monitoring, evaluating, and rewarding performance

Performance control and quality assurance procedures

Accounting and budgeting systems

Geographic locations and physical layout

Communication channels

04.6Ch 04 System fits and organizational politicsDiagnosisDesign issues at different levels that can be discussed through previous tools85 Alliances among organizationsFit acrossFeedback from groups affected by alliance, questionnaires

86 Links between divisionsVision like organizations in a network is possibleExchange of assetsRole of Corporate HQQuantitative and qualitative methods

87 Mechanistic vs. organic systemsAlignment of organizational designs with environment, tasks, technology, certainty vs. uncertaintyMore organic management if some challenges are present []

04.7Ch 04 System fits and organizational politicsDiagnosisDesign issues at different levels that can be discussed through previous tools87 Hierarchical vs. lateral tiesTraditional and hierarchical structures vs. lateral coordination and control designsMore links and cooperation

Pooled, sequential, reciprocal interdependencies

Lateral coordination mechanisms []

Coordination of activities, costly and difficult to administer, ambiguity and stress, tensions

Inquiry about flow of work and information between unitsFocus groups, interviews, questionnaires to examine nature of work and mechanisms for coordination and control

04.8Ch 04 System fits and organizational politicsDiagnosisDesign issues at different levels that can be discussed through previous tools90 Centralization vs. decentralization90 Decentralization Pros []

90 Decentralization cons []

Analysis of level of decision, actual patterns of decision making, and power distribution

91 Combining opposing design principlesSimultaneous combination of opposing principlesCentralization with lateral coordination mechanismsIT offers opportunity to benefit from centralization and decentralization

04.9Ch 04 System fits and organizational politicsEmergent and informal vs. official mandates92 Another way to uncover sources of inefficiency and to motivate desire for change is to provide feedback on gap between officially mandated behavior and emergent behavior and culture

Actual practices, norms, and beliefs emerge through interactions among the people who decide and the people who carry out instructions in practice. Negotiation takes place to shape actual behaviors and norms

04.10Ch 04 System fits and organizational politicsEmergent and informal vs. official mandates92 It is possible for consultants to find gaps between official mandates through the following emergent behavior and culture:

Operative goals and prioritiesWorking definitions of roles and responsibilitiesWork techniques and proceduresNorms and beliefs about official rulesInformal reward standardsInformal leadershipPersonal ties and networksRoutines for dealing with clients, customers, and outsidersPopular practices for influencing peers and superiors

04.11Ch 04 System fits and organizational politicsEmergent and informal vs. official mandates92 Emergent behaviors can differ greatly from official descriptionsControlling, rewarding, supervising, decision-making, conflict management, prevailing beliefs and norms

By shaping information that members consider as important and valid, shared beliefs affect ability to respond to change

93 Collecting dataIt is possible for consultants to find gaps between official mandates through the following emergent behavior and culture:

Operative goals and prioritiesWorking definitions of roles and responsibilitiesWork techniques and proceduresNorms and beliefs about official rulesInformal reward standardsInformal leadershipPersonal ties and networksRoutines for dealing with clients, customers, and outsidersPopular practices for influencing peers and superiors

04.12Ch 04 System fits and organizational politicsEmergent and informal vs. official mandates93-94 Collection of data on emergent behavior and cultureMethods for collection:-Direct observation-Intensive interview-Open or semi-structured interviews-Analysis of organizational records-Sociometric questionnaire (working and social relations)Critical incident method (interview to know how respondents dealt with critical incident)Item-path (how does product, client, or idea moves through an organization)Maps of relationsStatistical analysis of network ties

Triangulation of methods and interviewees is desirable

94-95 Processing data on emergent behavior and cultureFit or gap can be assumed to have costs and benefitsCare in interpretation because organizations are loosely coupled, organizations can operate successfully despite incongruity and inconsistency, differentiation may exist across units, incongruity can foster creativity and innovation, there is room for variation

04.13Ch 04 System fits and organizational politicsPower and politics95 Power = influence = capacity to get something done, including the ability to get people to do things they might other wise not do

95 Political actions = attempts by actors or groups of people to obtain favorable outcomes in areas of importance to themAreas: budgeting, resource allocation, strategy, goals, programs, changes, conflicts and crisis

Political processes may be the focus of diagnosis or its contextDiagnosis itself is an intervention and can impact the political system

Political diagnosis helps consultation and managing change

04.14Ch 04 System fits and organizational politicsPower and politics97 Diagnosing distribution and use of powerOrganizational consequences of politics on:-Time-Organizational paralysis-Championship to promote change-Viewpoint of specific actors-Effectiveness criteria-Effect of tactics used by people to influence others

97-98 Topics to study:-Reaction to power-Tension or conflict increase-Political deals or personal connections undercut organizational efforts?-Method for conflict resolution seen as fair?-Possession of enough resources to accomplish tasks?

98 MethodsInterviews, observation, measuresWhos to be studied?Stakeholder analysis

04.15Ch 04 System fits and organizational politicsPower and politics99-100 Manifestations of power-Resources-Centrality-Irreplaceability-Structure-Participation and influence in decision-making-Symbols-Reputation

Multiple measures and data-gathering techniques necessary, because power varies in areas for different individuals or groupsPowerful forms of influence, especially those which are considered as illegitimate, are difficult to observe. Necessity to understand the actual and emergent practices of politics

Interviews, focus groups, discussionsTriangulation and cross checking

05.01Ch 05 Environmental relationsIntroductionFocus of chapter is analytic techniques for diagnosing organization environment relations

This diagnosis can be used also for improve the strategic position of the firm

Many challenges exist

Diagnosis helps to:identify critical external conditionsassess current practices for managing environmental relationsImprove the competitive position

Three analytic techniques are presentedTarget is entire organization or divisionThe lower the autonomy of a unit, the more its environment includes other units

05.02Ch 05 Environmental relationsGuidelines for diagnosis: three techniquesFocus of chapter is analytic techniques for diagnosing organization environment relations

This diagnosis can be used also for improve the strategic position of the firm

Many challenges exist

Diagnosis helps to:identify critical external conditionsassess current practices for managing environmental relationsImprove the competitive position

Area explored in organization can be large or narrowTarget is entire organization or divisionThe lower the autonomy of a unit, the more its environment includes other units

05.03Ch 05 Environmental relationsGuidelines for diagnosis: three techniquesEnvironmental Relations Assessment ERAThisOpen Systems Planning OSPThisCompetitive strategy analysis SWOTThis

05.04Ch 05 Environmental relationsGuidelines for diagnosis: three techniques106 Environmental Relations Assessment ERASix steps1-Key conditions in organizations environment that influence firm

2-Main organization with which firm interacts, relations, and demands or constraints (competition, cooperation, dependence, etc.)

3-Units and individuals handling contacts

4-Organizational response to external demands and issues: avoid, adjust, intervene. Response reflects beliefs, politics, and practices

5-Effectiveness of responses to organizations environmentCf. table 2.1 p40-41Quantity and quality of resources obtained, ability to adapt to change, organizations strategic position, effect on internal processes

6-Improve management of external relationsIncremental or strategic changesActors and barriers to changeFocus on external demands creating problemsLack of focus on competitive environmentTime-consuming

05.05Ch 05 Environmental relationsGuidelines for diagnosis: three techniques109 Competitive strategy SWOTFoundation of competitive advantage is existence of distinctive capabilities that lead to superiority in a domain to rivals

1-Analysis of environments (close and general)2-Opportunities and risks3-Analysis of resources and capabilities4-Strengths and weaknesses5-Combinations6-Best match of opportunities and resources7-Strategy (product and market)

110 Threats110 Opportunities111 Strengths111 WeaknessesCan study a focused area or a broader system (entire firm)Input in strategyFinancial, managerial, technical, knowledge, political, functional competencies, innovation capability, learning capability,Best match resources opportunities (products, markets, cost strategy, differentiation strategyIncreasing capabilities and overcoming weaknessesTo identify competencies, comparison strengths and opportunities

05.06Ch 05 Environmental relationsGuidelines for diagnosis: three techniques113 Open systems planning OSPClient-centered diagnostic intervention, where participants have responsibility and authority to engage in strategic decision making and planning

1-Analysis of current environmental conditions

2-Analysis of current responses to environment

3-Analysis of actual priorities and purposes(goals, values, organization internal features)

4-Prediction of trends and conditions

5-Define ideal future (scenarios for ideal future)

6-Compare ideal and current states, and identify gaps

7-Establish priorities to gaps

8-Plan action for moving toward agreed upon future states by narrowing gaps, resolve disagreements, follow up on actions, and update plansCollaborative and decision-making approach

05.07Ch 05 Environmental relationsMethodsData collection

1-Direct investigationCollecting data from organizations stakeholders, from outside sources (internet, professional associations, press and media), from industry experts

2-Indirect investigationFrom top managers

3-Constructing an interview guideFlexibility, adapt to organization, taking into account previous answers

4-QuestionnairesStandardized questionnaire with reliable and structured measures of external relations and conditions-Organizational Assessment -International Organizational Observatory-National Organizations SurveyInterview based on ERAEach major heading would be broken down

1-External conditions2-Outside organizations and ties3-Units or people handling relationships4-Current management of problems, demands, and opportunities5-Effectiveness of current actions6-ways to improve current environmental management

05.08Ch 05 Environmental relationsMethodsData analysis and feedback

1-Data analysis and interpretationExamination of fit between external environment and organizational featuresIn large organizations, units face sub-environments

2-FeedbackFocuses directly on effectiveness of tactic and ways to enhance effectivenessAnalysis of environment as stimuli for self analysis and decision making; interpretations of environment are shaped by many factorsBased on ERA, sub-environment can be further analyzed :

1-Predictability2-Complexity3-Competitiveness4-Dependence on other organizations5-Degree of economic or political threat or support to unit and organization6-Distinctive problems and challenges7-Tactics for managing external relations

06.01Ch 06 Challenges and dilemmas for diagnosisIntroductionSuccessful diagnosis requires practitioners to meet requirements of diagnostic process, modeling, and methods

Difficult choices between project goals, beneficiaries of diagnosis, and professional and personal values

Three challenges:1-processual2-methodological3-analytic

Models work as frames and guidesPractitioners must combine these partial frames

Three diagnostic dilemmas1-goal dilemma2-politics dilemma3-professionalism dilemma

134 Balancing act of managing different tensions-Needs and desires of owner-Needs and desires of stakeholders-Own professional understanding and values-Valid, quality, believable diagnosis vs. constraints time and resources-Need to promote cooperation vs. diagnosis and responsiveness of findings

134 No universal solutionAnticipating difficulties reduces tensions

06.02Ch 06 Challenges and dilemmas for diagnosisGoals dilemmaPursuing modest objectives that can be obtained quickly and easily vs. more promising and ambitious objectives that require more effort and are riskier

Hierarchy of goals1-Provide specific information or evaluation

2-Solve a specific problem or reduce ineffectiveness

3-Assess organizational effectiveness, and recommend ways to improve effectiveness

4-Contribute to organizational learning

5-Contribute to organizational transformation through fundamental changesShort term and incremental improvementsLong term and fundamental impacts

06.03Ch 06 Challenges and dilemmas for diagnosisGoals dilemmaSources of tension and conflictConflicting goals

One goal may block another one, laterally or horizontally (different levels of goals)

Tendency to focus on specific organizational issues and stylesDisagreement about goals

Tendency to focus on low-level goalsRisks and benefits of each focus and nature of goalsResistance of members for different reasonsCosts vs. benefits

Costs and risks for each stakeholders in the diagnosis processSolutions

Starting with lower-level diagnosisSequencing goalsDiagnosis on ineffectiveness, rather than on enhancing effectivenessConducting diagnosis to report on disagreement among stakeholders and assessing how organization handles the differences

06.04Ch 06 Challenges and dilemmas for diagnosisPolitics dilemmaSeeking benefits for specific members of the organizationWho will benefit?

A group will benefit more than another one

1-Reveals weaknesses

2-Enhances resources or authority

3-Increase power or ability to take actions

4-Supports political positionsSolutions

From providing benefit for everyoneToConsidering that specific service to client

Preserve confidentialityAvoid unjustifiable harm ro the interest of individual members

Chart a middle course

Seek broad sponsorship and supervision of diagnosis across organizationProvide client with valid information and allow him freedom to decide

Whos appropriate client?

06.05Ch 06 Challenges and dilemmas for diagnosisProfessionalism dilemmaMaintaining strict professional standards vs. responding to personal values, needs and interests

Sources of tensions

1-Professional integrity vs. pleasing the owner of the study, and maintain professional credibility

2-Approval for decisions already made (pet theory); or diagnosis to ward-off critics

3-Seem ignorant and loose project if admit that it lies beyond area of specialization

4-Tentative and ambiguous status of applied social and behavioral sciences

5-Publication of reports and findings from the projectsSolutions

Avoid or terminate projects that involve threats to honest diagnosis

Broaden approach and promote genuine organizational improvements

Problem cannot be handled with off-the-shelf techniques

Disclose honest limitations to knowledge and experience

Sharing limitations of theory with owner? Depends on relation

Formulating, checking, and reformulating analysis and methods; experimental attitude

No justification for personal gain in ways that harm owner or generates unjustified and hidden costs

06.06Ch 06 Challenges and dilemmas for diagnosisProfessionalism dilemmaMaintaining strict professional standards vs. responding to personal values, needs and interests

Sources of tensions

Evaluation of diagnosis projectsIdeally, diagnosis should be subject to evaluation

But many practical limitations:-confidentiality-no will to do so-lost contact with owner after diagnosis-diagnosis only one link in a complex chain of actionsSolutions

Conducting own evaluation

Publishing reports and hiding real names

Possible criteria:a- Perceived usefulness of diagnosis

b- Extent to which diagnosis helps to solve specific issues and improve effectiveness

c- Contribution of diagnosis to owners assessment of their organization

d- Perceived usefulness of recommendations

e- Degree of use of diagnosis feedback in decision-making and planning

f- Degree to which participation in diagnosis and receipt of feedback contributes to the owners capacity for self assessment, group decision-making, and action planning

06.07Ch 06 Challenges and dilemmas for diagnosisProfessionalism dilemmaMaintaining strict professional standards vs. responding to personal values, needs and interests

Sources of tensions

Preserving personal integrityServing owner and respecting personal ethics and valuesEthical issues are rarely clear-cutEnhancing the power of top management

Solutions

Practitioner should be aware of political implications of diagnosis and their implicit value stances concerning uses and abuses of power

Helping less powerful groups

07.01Appendixes for diagnosisIntroductionDifferent diagnosis tools to help

A- General orientation interview

B- Instruments for diagnostic and assessment

C- A guide to diagnosing behavior during meetings

D- Resources for developing expertise in diagnostic

07.02Appendixes for diagnosisA- General orientation interviewUnderstanding features of department and unit and challenges

I Person and jobII Work roles, technology and outputsIII Group structures and processesIV Environment: relations to unitsV Environment: external relations, system dynamics, and historyVI StructureVII ProcessesVIII Culture and processesIX Culture and goalsX Problems and challengesXI Individual satisfaction

07.03Appendixes for diagnosisB- Instruments for diagnosis and assessmentBroad instruments and models

I Organizational Assessment Inventory OAIII Michigan Organizational Assessment QuestionnaireIII Organizational Assessment SurveyIV Organizational Fitness ProfilingV Burke-Litwin Model and SurveyFocused instruments and models

I Human Resources ScorecardII National organization SurveyIII Culture auditsIV Team diagnostic SurveyV Instruments for Organizational Development and Team BuildingVI Multifactor Leadership Questionnaire

07.04Appendixes for diagnosisC- A guide to diagnosing behavior during meetingsQuestions about group meetings

I Goals, targets, and proceduresII ParticipationIII Flows of information and ideasIV Problem solvingV Decision-makingVI ConflictVII Interpersonal relations and feelingsVIII Outcomes

07.05Appendixes for diagnosisD- Resources for developing expertise in diagnosis

I Academic training

II Workshops and conferences

III Readings

008Vision and MissionStrategic analysisGoals and objectivesSTRATEGYImplementation4321InsideOutsideCh 01 Diagnosis: approaches and methods