Diagnosing organizations

1
Diagnosing organizations Methods, models, and
processes Michael I. Harrison 2005 3rd.
Edition ISBN 978-0-7619-2572-9
Presentation of key concepts and logic Prepared
by Daniel Degravel July 2009
2
Ch 01 Diagnosis approaches and methods
01.1
Introduction
IX Objective of textbook How diagnosis can help
managers and consultants to act quickly and
flexibly to meet the challenges of uncertain
environments
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
134 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
IX 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 techniques
3
Ch 01 Diagnosis approaches and methods
01.2
Why a Diagnosis?
4 Why a diagnosis? 1- Because issues or
problems 2- Because will to reduce gap between
current and desired organizational state
3 Some problems 1- Poor quality, delay, crisis,
ineffectiveness 2- Declining demand and revenues,
customer satisfaction, criticism by
stakeholders 3- Human resource issues (high
turn-over, stress, low morale) 4- Radical
external changes 5- 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)
4
Ch 01 Diagnosis approaches and methods
01.3
Why a Diagnosis?
5-6 Organizational Development OD 5 OD a set of
techniques and methods to apply behavioral
science to the planned development and
reinforcement of strategies, structures, and
processes for effectiveness Diagnosis 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-maintenance 2- 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 procedures 4-
Goals, strategies, and culture goal and strategy
clarification through workshops, exercises
facilitating ties within organization examining
and changing corporate culture
3- Because need for change
7-8 Business Oriented Project BOP 5 BOP a set
of techniques and methods to improving economic
performance and competitive advantages. Rely more
on specific fields, such as business, and
engineering
5
Ch 01 Diagnosis approaches and methods
01.4
Characteristics of Diagnosis
11 Diagnosis 1- Applied Focuses 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- Methods Often less
sophisticated and complex research design and
methods Rely more on hunches, intuition,
experience, and on scientific methods 4-
Neutrality Cannot stay neutral about impact of
study on organization and its members
6
Ch 01 Diagnosis approaches and methods
01.5
Three dimensions of a Diagnosis
Three critical dimensions of diagnosis 1-
Process 12 Set of tasks and steps in
diagnosis 2- Modeling 15 Theories and models
in background as foundation of diagnosis 3-
Methods 19-20 Practical methods and techniques
collect and analyze information
7
Ch 01 Diagnosis approaches and methods
01.6
Three dimensions of a Diagnosis
Process 12 Steps a-Entry b-Contracting c-Study
design d-Data gathering e-Analysis f-Feedback to
firm
13 Critical process issues a-Purpose of
diagnosis b-Design (who, where, what,
when) c-Support and cooperation (whos client,
responsible, support? ) d-Participation (other
members) e-Analysis f-Feedback (when, how, to
whom, and what use of results?)
8
Ch 01 Diagnosis approaches and methods
01.7
Three dimensions of a Diagnosis
15-18 Modeling 1- Standardized models 2-
Customized models
16 Diagnostic questions related to the initial
issue a-Interpreting initial statement of
problem b-Redefining problem c-Understanding the
current state of the organization/situation d-Iden
tifying forces against and for change e-Developing
workable solutions
9
Ch 01 Diagnosis approaches and methods
01.8
Three dimensions of a Diagnosis
17-18 Modeling
17 Determinants Nature of issue Goal of
diagnosis Organizational position of client
16 Level of analysis Industry Organization Divi
sion Department Group (team, small work
unit) Individual
18 Scope of analysis Scope is number of
variables studied The larger the scope, the
smaller the level of detail, and conversely
10
Ch 01 Diagnosis approaches and methods
01.9
Three dimensions of a Diagnosis
19 Methods Standards of scientific
inquiry -Reliable -Valid (replicable) Observation
better than interview
11
Ch 01 Diagnosis approaches and methods
01.10
Three dimensions of a Diagnosis
20 Methods Three research designs
A-Measure of dimensions or criteria for
comparison between units of analysis Client
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 data Impact 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
inference Members perceptions, hidden
assumptions, work styles, and underground
interactions
12
Ch 01 Diagnosis approaches and methods
01.11
Three dimensions of a Diagnosis
21-22 Methods for gathering data Questionnaire In
terviews Observations Available records and
data Workshops and group discussion
13
Ch 01 Diagnosis approaches and methods
01.12
Plan of book
Diagnosis is envisioned according different
perspectives, in which the focal point varies The
open system framework is used as a general guide
for all four perspectives
Individual and group behaviors
B
Diagnosis
Open systems
Organizational Fits and internal politics
A
C
D
Environmental relations and strategy
Differentiators
14
Ch 01 Diagnosis approaches and methods
01.13
Wrapping up
Diagnosis
3 FUNDAMENTAL DIMENSIONS
4 PERSPECTIVES
Method
Open systems model Ch02 (general approach with
many variables)
Method for collect and analysis to ensure
reliability Research design
Assessing individual and group behavior
Ch03 (organizational situations at the level of
the individual and the group)
Organizational Fits and internal politics
Ch04 (organizational situations at the level of
macro variables and internal politics)
Process
Steps of analysis
Framing
Environmental relations Ch05 (organizational
relations with its environment, e.g. marketing
and strategic relations)
Defining problem, analyzing results Models of
collect and analysis Definition of scope and
topics High value dimension
15
Ch 01 Diagnosis approaches and methods
01.14
A map
12 Phases in diagnosis 13 Critical process
issues 16 Diagnostic questions 21-22 Table 1.1
Comparison of methods for gathering diagnostic
data
Introduction
Open systems model Ch02 (general approach with
many variables)
28 Figure 2.1 Organizations as open models 34-35
Basic organizational information 39 Assessing
effectiveness five topics 40-41 Table 2.1
Effectiveness criteria
Assessing individual and group behavior
Ch03 (organizational situations at the level of
the individual and the group)
56 Figure 3.1 Model for diagnosing individual and
group behavior 62 Figure 3.2 Action model for
group task performance
77-78 Examples of problems 80 Figure 4.1
Diagnosis system fits 82-84 Questions about
fits 85 Design tools to consider during
diagnosis 99-100 Table 4.2 Who is powerful?
Organizational Fits and internal politics
Ch04 (organizational situations at the level of
macro variables and internal politics)
106-109 Six diagnostic guidelines 110 Figure 5.1
Model for strategy formulation 113 OSP
instructions to participants in the planning
process 115-116 Interview guide
Environmental relations Ch05 (organizational
relations with its environment, e.g. marketing
and strategic relations)
A 137-141 General orientation interview B 143-146
Instruments for diagnosis and assessment C
147-149 A guide to diagnosing behavior during
meetings D 151-153 Resources for developing
expertise in diagnosis
Appendixes
16
Ch 02 Open systems models
02.1
Introduction
The 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 feature
Outline 1- Model 2- Model and diagnosis 3-
Organizational data 4- Processing and analyzing
information 5- Assessing effectiveness 6-
Assessing feasibility of change
17
Ch 02 Open systems models
02.2
Model
p.27 The open systems model organizes several
components and their relationships
Culture
Behavior and processes tasks and
activities Technology
Inputs (resources)
Outputs
Structure
Environment -Task -General
18
Ch 02 Open systems models
02.3
Model
Systems components p.27-29 1- Inputs 2-
Outputs 3-Organizational behavior and
processes 4-Technology 5-Environment 6-Structure 7
-Culture 8-System dynamics
19
Ch 02 Open systems models
02.4
Model and diagnosis
Principles 1/2 Systems 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-systems 5- Organization can produce some of
its own inputs 8- Organization and environment
change in a connected relationship
20
Ch 02 Open systems models
02.5
Model and diagnosis
Principles 2/2 Effectiveness and success 3- Fit
across components is critical for
effectiveness 4- Positive relationship between
system and its environment is critical for
effectiveness (adapt, shape, and find) 6- People
are a critical resource for success 7- The recipe
for success is ability to meet internal system
needs and adaptation to environment
21
Ch 02 Open systems models
02.6
Model and diagnosis
Principles Use 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
22
Ch 02 Open systems models
02.7
Organizational data
Data to be collected p.34-36
1- Background of diagnosis 2- Outputs 3- Goals
and strategies 4- Inputs 5- Environment 6-
Technology and work processes activities
7- Structure 8- Behavior and processes 9- Culture
and cognition 10- Systems dynamics
23
Ch 02 Open systems models
02.8
Processing and analyzing information
Validity 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
24
Ch 02 Open systems models
02.9
Processing and analyzing information
Methods p.37-38 Groupings of answers Qualitativ
e analysis Presentation of entire set of
responses to stimulate analysis Interactions
between system components
25
Ch 02 Open systems models
02.10
Assessing effectiveness
Introduction 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
26
Ch 02 Open systems models
02.11
Assessing effectiveness
Elements 1-Assessment approach 2-Domains
(set of conceptually related criteria) 3-Crite
ria
Underlying approach and assumptions Output-goals
Internal system states system resources and
adaptation multiple stakeholders
Sets of criteria in relationships Conflicting
criteria
Sets of criteria
27
Ch 02 Open systems models
02.12
Assessing effectiveness
Elements 4-Operational definitions and
measures 5-Standards for analysis and
evaluation
Criterion and operational measure Clarification
of criterion, and identification of indicators,
and operational measures For stakeholder
approach, multiple answers varying with
conception of effectiveness
Standard necessary, as time frame and
feedback Current vs. past Internal benchmarking
of effectiveness outside benchmarking current
vs. minimum standard current vs. ideal standard
28
Ch 02 Open systems models
02.13
Assessing effectiveness
Choices 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 solve Assessment of
ineffectiveness generates often more consensus
29
Ch 02 Open systems models
02.14
Assessing feasibility of change

• If 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?

30
Ch 02 Open systems models
02.15
Appendix A General orientation Interview
General 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, outputs 3-Groups structures and
processes Goals, control, coordination Group and
organization levels 4-Internal environment
Relations across units GOL 5-External
environment Relations, history, and dynamics
GOL 6-Structure GOL 7-Processes Group
level 8-Culture and processes GOL 9-Culture and
goals GOL 10-Problems and challenges
GOL 11-Individual satisfaction Individual level
31
Ch 03 Assessing individual and group behavior
03.1
Introduction
Assessing individual and group behavior and their
impact on organizational effectiveness Model
provides forces and outcomes to examine in
diagnosis
32
Ch 03 Assessing individual and group behavior
03.2
A Model
ORGANIZATIONAL LEVEL GROUP
LEVEL INDIVIDUAL LEVEL
Goals, structure, culture, technology behavior,
and processes
Effectiveness
Resources
Group composition, structure, and technology
Group behavior processes, culture
Effectiveness
Resources
Effectiveness
Individual job, and tasks
Individual behavior, attitudes, orientations
QWL, Well-being
Human resources
33
Ch 03 Assessing individual and group behavior
03.3
Effectiveness
How to measure effectiveness?
GROUP LEVEL Output criteria Key goods or service
produced by the group, and measure of quantity
and quality over time INDIVIDUAL LEVEL Members
efforts, initiative, cooperation, absenteeism,
lateness, commitment to job, Quality of work life
and well-being
34
Ch 03 Assessing individual and group behavior
03.4
Effectiveness
Which factors affect individual and group
effectiveness?
GROUP LEVEL Employees expectations and
understandings attitudes and perceptions about
organizational debates Group composition,
structure (reward system, communication,
cooperation and conflict, decision-making,
supervisory behavior, groups norms and
beliefs Technology INDIVIDUAL LEVEL Members
characteristics such as education, design of job,
motivation, attitude to organizational
actions BOTH LEVELS Strategies, standards, and
goals Culture
35
Ch 03 Assessing individual and group behavior
03.5
Effectiveness
Analysis of HRM programs
HRM program shape skills, knowledge, attitude,
and behavior of employees (p.60) Staffing Compens
ation Labor relations Work environment Goal
setting Planning Job analysis Evaluation and
performance assessment
36
Ch 03 Assessing individual and group behavior
03.6
Effectiveness
Analysis of group task performance
The 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 well 2- Bringing in adequate skills and
knowledge 3- Using task performance that fits the
work and cultural and organizational settings in
which the work is done
37
Ch 03 Assessing individual and group behavior
03.7
Effectiveness
Analysis of group task performance model of
analysis (p.62)
Material and technical resources
Organizational context Goals, reward,
information, training
Performance (output)
Critical group processes 1-Effort 2-Task
performance strategies 3-Knoweldge and skills
Group design and culture Tasks, composition, norms
Outside help Other groups, consultant, coach
38
Ch 03 Assessing individual and group behavior
03.8
Methods and processes
The design and the administration of a diagnosis
of forces affecting individual and group
performance
Designing 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
39
Ch 03 Assessing individual and group behavior
03.9
Methods and processes
The design and the administration of a diagnosis
of forces affecting individual and group
performance
Measurement and data-gathering techniques -Analyzi
ng available data -Interviews -Self-administered
questionnaires -Standardized instruments MOAQ,
QWL, OAI -Observations
40
Ch 03 Assessing individual and group behavior
03.10
Methods and processes
The design and the administration of a diagnosis
of forces affecting individual and group
performance
Analysis -Non-statistical data Analyzed with
diagrams Visual models -Feedback to the owner of
the study
41
Ch 04 System fits and organizational politics
04.1
Introduction
Assessing fit among system components and between
current system features and organizational goals
and strategy
Uncovering 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 conditions 77 List of internal problems
that reflect poor fit among organizational
features 78 List of external problems that
reflect poor fit among organizational features

42
Ch 04 System fits and organizational politics
04.2
Diagnosis
Diagnosis of system fits
Types of fits
Fit related to system features that are to be
redesigned
Fit related to problem or challenge
FIT
Comprehensive diagnosis
Fit among different system levels (individual,
group, organization)
43
Ch 04 System fits and organizational politics
04.3
Diagnosis
80 Diagnosis of system fits process
Inputs -problems -prior findings -models
Choose Fit -level -system elements, subcomponents
Design study and gather data -research
design -methods -data collection
Ways to choose fits Compatibility of
requirements, needs, or procedures in parts of
system Whether participants feel subject to
conflicting expectations or pressures Whether
system components fit together in ways
organizational research suggests they would
Assess degree of fit -needs of units, system
parts -conflicts and tensions -actual vs.
official practices -organization design models
Choose effectiveness criteria
Assess impact -negative -positive -loose coupling
Summary and feedback
44
Ch 04 System fits and organizational politics
04.4
Diagnosis
82-84 Checklist of important fits
Fit with
Focal area
Environment Internal systems demand Human
resources Systems processing goals and
strategies Goals and strategies Environment
resources behavior and processes
culture Technology Environment behavior and
processes structure culture Internal
systems Environment Structure Technology
behavior and processes environment Human
resources Behavior and processes Culture
environment
45
Ch 04 System fits and organizational politics
04.5
Diagnosis
85 Design tools to consider during diagnosis
Contractual 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
46
Ch 04 System fits and organizational politics
04.6
Diagnosis
Design issues at different levels that can be
discussed through previous tools
85 Alliances among organizations Fit
across Feedback from groups affected by alliance,
questionnaires 86 Links between
divisions Vision like organizations in a network
is possible Exchange of assets Role of Corporate
HQ Quantitative and qualitative methods 87
Mechanistic vs. organic systems Alignment of
organizational designs with environment, tasks,
technology, certainty vs. uncertainty More
organic management if some challenges are present

47
Ch 04 System fits and organizational politics
04.7
Diagnosis
Design issues at different levels that can be
discussed through previous tools
87 Hierarchical vs. lateral ties Traditional and
hierarchical structures vs. lateral coordination
and control designs More 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 units Focus groups,
interviews, questionnaires to examine nature of
work and mechanisms for coordination and control
48
Ch 04 System fits and organizational politics
04.8
Diagnosis
Design issues at different levels that can be
discussed through previous tools
90 Centralization vs. decentralization 90
Decentralization Pros 90 Decentralization
cons Analysis of level of decision, actual
patterns of decision making, and power
distribution 91 Combining opposing design
principles Simultaneous combination of opposing
principles Centralization with lateral
coordination mechanisms IT offers opportunity to
benefit from centralization and decentralization
49
Ch 04 System fits and organizational politics
04.9
Emergent and informal vs. official mandates
92 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
50
Ch 04 System fits and organizational politics
04.10
Emergent and informal vs. official mandates

• 92 It is possible for consultants to find gaps
  between official mandates through the following
  emergent behavior and culture
• Operative goals and priorities
• Working definitions of roles and responsibilities
• Work techniques and procedures
• Norms and beliefs about official rules
• Informal reward standards
• Informal leadership
• Personal ties and networks
• Routines for dealing with clients, customers, and
  outsiders
• Popular practices for influencing peers and
  superiors

51
Ch 04 System fits and organizational politics
04.11
Emergent and informal vs. official mandates

• 92 Emergent behaviors can differ greatly from
  official descriptions
• Controlling, 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 data
• It is possible for consultants to find gaps
  between official mandates through the following
  emergent behavior and culture
• Operative goals and priorities
• Working definitions of roles and responsibilities
• Work techniques and procedures
• Norms and beliefs about official rules
• Informal reward standards
• Informal leadership
• Personal ties and networks
• Routines for dealing with clients, customers, and
  outsiders
• Popular practices for influencing peers and
  superiors

52
Ch 04 System fits and organizational politics
04.12
Emergent and informal vs. official mandates

• 93-94 Collection of data on emergent behavior and
  culture
• Methods 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 relations
• Statistical analysis of network ties
• Triangulation of methods and interviewees is
  desirable
• 94-95 Processing data on emergent behavior and
  culture
• Fit or gap can be assumed to have costs and
  benefits
• Care 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

53
Ch 04 System fits and organizational politics
04.13
Power and politics
95 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 them Areas budgeting, resource
allocation, strategy, goals, programs, changes,
conflicts and crisis Political processes may be
the focus of diagnosis or its context Diagnosis
itself is an intervention and can impact the
political system Political diagnosis helps
consultation and managing change
54
Ch 04 System fits and organizational politics
04.14
Power and politics
97 Diagnosing distribution and use of
power Organizational 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
Methods Interviews, observation, measures Whos
to be studied? Stakeholder analysis
55
Ch 04 System fits and organizational politics
04.15
Power and politics
99-100 Manifestations of power -Resources -Central
ity -Irreplaceability -Structure -Participation
and influence in decision-making -Symbols -Reputat
ion Multiple measures and data-gathering
techniques necessary, because power varies in
areas for different individuals or
groups Powerful 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,
discussions Triangulation and cross checking
56
Ch 05 Environmental relations
05.01
Introduction

• Focus 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 conditions
• assess current practices for managing
  environmental relations
• Improve the competitive position
• Three analytic techniques are presented
• Target is entire organization or division
• The lower the autonomy of a unit, the more its
  environment includes other units

57
Ch 05 Environmental relations
05.02
Guidelines for diagnosis three techniques

• Focus 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 conditions
• assess current practices for managing
  environmental relations
• Improve the competitive position
• Area explored in organization can be large or
  narrow
• Target is entire organization or division
• The lower the autonomy of a unit, the more its
  environment includes other units

58
Ch 05 Environmental relations
05.03
Guidelines for diagnosis three techniques
Competitive strategy analysis SWOT This
Environmental Relations Assessment ERA This
Open Systems Planning OSP This
59
Ch 05 Environmental relations
05.04
Guidelines for diagnosis three techniques
106 Environmental Relations Assessment ERA
Focus on external demands creating problems Lack
of focus on competitive environment Time-consuming
Six steps 1-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 environment Cf. table 2.1
p40-41 Quantity and quality of resources
obtained, ability to adapt to change,
organizations strategic position, effect on
internal processes 6-Improve management of
external relations Incremental or strategic
changes Actors and barriers to change
60
Ch 05 Environmental relations
05.05
Guidelines for diagnosis three techniques
109 Competitive strategy SWOT
Can study a focused area or a broader system
(entire firm) Input in strategy
Foundation 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 risks 3-Analysis of resources and
capabilities 4-Strengths and weaknesses 5-Combinat
ions 6-Best match of opportunities and
resources 7-Strategy (product and market) 110
Threats 110 Opportunities 111 Strengths 111
Weaknesses
To identify competencies, comparison strengths
and opportunities
Financial, managerial, technical, knowledge,
political, functional competencies, innovation
capability, learning capability,
Best match resources opportunities (products,
markets, cost strategy, differentiation
strategy Increasing capabilities and overcoming
weaknesses
61
Ch 05 Environmental relations
05.06
Guidelines for diagnosis three techniques
113 Open systems planning OSP
Collaborative and decision-making approach
Client-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
plans
62
Ch 05 Environmental relations
05.07
Methods
Data collection 1-Direct investigation Collecting
data from organizations stakeholders, from
outside sources (internet, professional
associations, press and media), from industry
experts 2-Indirect investigation From top
managers 3-Constructing an interview
guide Flexibility, adapt to organization, taking
into account previous answers 4-Questionnaires St
andardized questionnaire with reliable and
structured measures of external relations and
conditions -Organizational Assessment
-International Organizational Observatory -Nation
al Organizations Survey
Interview based on ERA Each major heading would
be broken down 1-External conditions 2-Outside
organizations and ties 3-Units or people handling
relationships 4-Current management of problems,
demands, and opportunities 5-Effectiveness of
current actions 6-ways to improve current
environmental management
63
Ch 05 Environmental relations
05.08
Methods
Data analysis and feedback 1-Data analysis and
interpretation Examination of fit between
external environment and organizational
features In large organizations, units face
sub-environments 2-Feedback Focuses
directly on effectiveness of tactic and ways to
enhance effectiveness Analysis of environment as
stimuli for self analysis and decision making
interpretations of environment are shaped by many
factors
Based on ERA, sub-environment can be further
analyzed 1-Predictability 2-Complexity 3-Compet
itiveness 4-Dependence on other
organizations 5-Degree of economic or political
threat or support to unit and organization 6-Disti
nctive problems and challenges 7-Tactics for
managing external relations
64
Ch 06 Challenges and dilemmas for diagnosis
06.01
Introduction
Successful 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-processual 2-methodological 3-analyt
ic Models work as frames and guides Practitioners
must combine these partial frames Three
diagnostic dilemmas 1-goal dilemma 2-politics
dilemma 3-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 solution Anticipating difficulties
reduces tensions
65
Ch 06 Challenges and dilemmas for diagnosis
06.02
Goals dilemma
Pursuing modest objectives that can be obtained
quickly and easily vs. more promising and
ambitious objectives that require more effort and
are riskier Hierarchy of goals 1-Provide
specific information or evaluation 2-Solve a
specific problem or reduce ineffectiveness 3-Ass
ess organizational effectiveness, and recommend
ways to improve effectiveness 4-Contribute to
organizational learning 5-Contribute to
organizational transformation through fundamental
changes
Short term and incremental improvements
Long term and fundamental impacts
66
Ch 06 Challenges and dilemmas for diagnosis
06.03
Goals dilemma
Sources of tension and conflict
Costs vs. benefits Costs and risks for each
stakeholders in the diagnosis process
Conflicting goals One goal may block another
one, laterally or horizontally (different levels
of goals) Tendency to focus on specific
organizational issues and styles
Disagreement about goals Tendency to focus on
low-level goals Risks and benefits of each focus
and nature of goals Resistance of members for
different reasons
Solutions Starting with lower-level
diagnosis Sequencing goals Diagnosis on
ineffectiveness, rather than on enhancing
effectiveness Conducting diagnosis to report on
disagreement among stakeholders and assessing how
organization handles the differences
67
Ch 06 Challenges and dilemmas for diagnosis
06.04
Politics dilemma
Seeking benefits for specific members of the
organization Who 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 positions
Solutions From providing benefit for
everyone To Considering that specific service to
client Preserve confidentiality Avoid
unjustifiable harm ro the interest of individual
members Chart a middle course Seek broad
sponsorship and supervision of diagnosis across
organization Provide client with valid
information and allow him freedom to
decide Whos appropriate client?
68
Ch 06 Challenges and dilemmas for diagnosis
06.05
Professionalism dilemma
Maintaining 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 projects
Solutions 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
69
Ch 06 Challenges and dilemmas for diagnosis
06.06
Professionalism dilemma
Maintaining strict professional standards vs.
responding to personal values, needs and
interests Sources of tensions Evaluation of
diagnosis projects Ideally, 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 actions
Solutions 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
70
Ch 06 Challenges and dilemmas for diagnosis
06.07
Professionalism dilemma
Maintaining strict professional standards vs.
responding to personal values, needs and
interests Sources of tensions Preserving
personal integrity Serving owner and respecting
personal ethics and values Ethical issues are
rarely clear-cut Enhancing 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
71
Appendixes for diagnosis
07.01
Introduction
Different 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
72
Appendixes for diagnosis
07.02
A- General orientation interview
Understanding features of department and unit and
challenges I Person and job II Work roles,
technology and outputs III Group structures and
processes IV Environment relations to units V
Environment external relations, system dynamics,
and history VI Structure VII Processes VIII
Culture and processes IX Culture and goals X
Problems and challenges XI Individual satisfaction
73
Appendixes for diagnosis
07.03
B- Instruments for diagnosis and assessment
Broad instruments and models I Organizational
Assessment Inventory OAI II Michigan
Organizational Assessment Questionnaire III
Organizational Assessment Survey IV
Organizational Fitness Profiling V Burke-Litwin
Model and Survey
Focused instruments and models I Human Resources
Scorecard II National organization Survey III
Culture audits IV Team diagnostic Survey V
Instruments for Organizational Development and
Team Building VI Multifactor Leadership
Questionnaire
74
Appendixes for diagnosis
07.04
C- A guide to diagnosing behavior during meetings
Questions about group meetings I Goals, targets,
and procedures II Participation III Flows of
information and ideas IV Problem solving V
Decision-making VI Conflict VII Interpersonal
relations and feelings VIII Outcomes
75
Appendixes for diagnosis
07.05
D- Resources for developing expertise in diagnosis
I Academic training II Workshops and
conferences III Readings
76
Ch 01 Diagnosis approaches and methods
008
Strategic analysis
Outside
Inside
3
Vision and Mission
Goals and objectives
STRATEGY
Implementation
4
2
1