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Semester 4Organization Development
Organizational Diagnosis – lesson 1Presented by
Dr. Prabath Karunanayake MBBS, MBA in HRM, PGDipPsych, PGDipOHS
Director HR, China Harbour Engineering CompanyLead Consultant, Prabath Karunanayake Associates
[email protected]/prabath2014
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
MASTERS INHUMAN RESOURCE
MANAGEMENT
Lesson plan
• Introduction to organizational diagnosis• Organization-level diagnosis• Group-level diagnosis• Individual-level diagnosis• Activity – Case studies on Analyzing
organizations, groups and individuals • Diagnostic relationship• Collecting, analyzing and presenting data• Feeding back diagnostic information• Assignment – Organizational climate survey
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Diagnosis Defined
Diagnosis is
a collaborative process between organizational members and the OD
consultant
to collect pertinent information, analyze it, and draw conclusions
for action planning and intervention.
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Organization-Level Diagnosis
Inputs
Technology
Strategy Structure
HR Measurement Systems Systems
GeneralEnvironment
Task Environment
Design ComponentsC
ultu
re
Organ
izationE
ffectiveness
Outputs
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Organization-Level Inputs
• General Environment– External forces that can directly or indirectly affect the
attainment of organizational objectives
– Political, economic, social, technological, ecological and legal (PESTEL)
• Task Environment (Industry Structure)– External forces that can directly affect the organization
– Customers, suppliers, substitute products, new entrants, and rivalry among competitors (Porter’s five forces)
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Organization Design Components
• Strategy– the way an organization uses its resources (human,
economic, or technical) to gain and sustain a competitive advantage
• Structure– how attention and resources are focused on task
accomplishment
• Technology– the way an organization converts inputs into products and
services
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
• Human Resource Systems– the mechanisms for selecting, developing, appraising, and
rewarding organization members
• Measurement Systems– methods of gathering, assessing, and disseminating
information on the activities of groups and individuals in organizations
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
• Organization Culture– Basic assumptions, values, and norms shared by
organization members
– Represents both an ‘outcome’ of organization design and a ‘constraint’ to change
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Organization-Level Outputs
• Organization Performance– e.g., profits, profitability, stock price
• Productivity– e.g., cost/employee, cost/unit, error rates, quality
• Stakeholder Satisfaction– e.g., market share, employee satisfaction, analysis opinions
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Organization-Level Alignment
• Does the organization’s strategic orientation fit with the inputs?– Products and services respond to real needs
– Operate in an ecologically sustainable manner
• Do the design components fit with each other?– Alignment of strategy with structure, use of technology,
human resource systems and measurement systems
– Alignment of human resource systems and structure
– Alignment of structure and use of technology
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Goal Clarity
Task TeamStructure Functioning
Group GroupComposition Norms
Group-Level Diagnostic Model
Inputs Design Components Outputs
OrganizationDesign
TeamEffectiveness
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Group-level Inputs
• Organization design is the major input• Consists of design characteristics of the larger
organization• Include:
– Structure– Technology– Human resource systems– Measurement systems– Culture
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Group-Level Design Components
• Goal Clarity– extent to which group understands its objectives
• Task Structure– the way the group’s work is designed
• Team Functioning– the quality of group dynamics among members
• Group Composition– the characteristics of group members
• Group Norms– the unwritten rules that govern behavior
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Group-level Outputs
• Group performance– Ability to control or reduce costs, increase productivity or
improve quality
• Group member’s quality of work life– Job satisfaction, team cohesiveness and organizational
commitment
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Group-level Alignment
• Group design should match larger organization design• Low differentiation and high integration
– Group composition and task structure
• Differentiated structure– Goal clarity
• Interdependent tasks – Goal clarity, task structure, group composition, performance
norms and team functioning
• High information processing and decision making– Task structure, group composition, group norms and team
functioning
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Goal Variety
Task Identity Autonomy
Task Feedback Significance
Individual-Level Diagnostic Model
Inputs Design Components Outputs
Organization Design
Group Design
PersonalTraits
IndividualEffectiveness
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Individual-Level Inputs
• Organization design– Structure, technology, measurement systems and human
resource systems
• Group design– Task structure, group composition, group norms and team
functioning
• Personal characteristics– Age, education, experience, skills and abilities, needs and
expectations
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Individual-Level Design Components
• Skill Variety– The range of activities and abilities required for task
completion
• Task Identity– The ability to see a “whole” piece of work
• Task Significance– The impact of work on others
• Autonomy– The amount of freedom and discretion
• Feedback about Results– Knowledge of task performance outcomes
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Individual-Level Outputs
• Performance– e.g. cost/unit, service or product quality
• Job Satisfaction– e.g. internal motivation
• Personal Development– e.g. growth in skills, knowledge, and self
Cummings & Worley, 9e (c) 2009 South-Western College Publishing
Individual-level Alignment
• Larger organization and group design– Differentiated and integrated organizations and groups
promote autonomy, flexibility and innovation
• Personal characteristics– Enriched jobs fit people with growth needs and high levels
of skills and knowledge– Enriched jobs require information processing and decision
making skills
FB/prabath2014FB/mindbody2014
FB/ecoleadership2014
Cummings & Worley, 9e (c) 2009 South-Western College Publishing