The Diagnostic Process

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Chapter 5

• The Diagnostic Process

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Learning Objectives (part 1 of 2)

• Identify system parameters and recognize
  symptoms, problems, and causes of organizational
  ineffectiveness.
• Recognize techniques for gathering information
  from client systems.

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Learning Objectives (part 2 of 2)

• Describe major diagnostic models and techniques
  used in OD programs.
• Apply systematic diagnosis to organizational
  situations.

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Data Mining at McDonalds?(part 1 of 2)

• McDonalds has new method of gathering data from
  customers.
• Sends mystery-diners to restaurants.
• Collects data useful to individual store.
• Evaluators trained so there was consistency in
  grading.

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Data Mining at McDonalds?(part 2 of 2)

• Stores evaluated every six months.
• Simultaneously conducts in-depth interviews with
  repeat customers.

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Diagnosing Problem Areas(part 1 of 2)

• Identification of areas for improvement.
• Assess organizations current performance and
  desired level of quality.

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Diagnosing Problem Areas(part 2 of 2)

• Provides information that allows for
  faster-reacting organization.
• Analyzes data on structure, administration,
  interaction, and other elements.

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What is Diagnosis?

• A systematic approach to understand present state
  of organization.
• Specifies nature of problem, causes, and provide
  basis for selecting strategies.
• Involves systematic analysis of data.

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Critical Issues in Diagnosis

• Simplicity.
• Visibility.
• Involvement.

• Primary factors.
• Measure whats important.
• Sense of urgency.

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The Process

• Diagnosis is cyclical process involving

• Data gathering.
• Identification of problem areas.

• Interpretation.
• Potential action programs.

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Steps in Diagnosis (part 1 of 2)

• Step 1 Tentative problem identified.
• Step 2 Collect data.
• Step 3 Analyze data.
• Step 4 Feedback data.
• Step 5 More data needed?

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Steps in Diagnosis (part 2 of 2)

• Step 6 Problems areas identified.
• Step 7 Is client motivated?
• Step 8 Diagnosis and work on problem.
• Step 9 Monitor and assess results.

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Figure 5.1The Diagnostic Process
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Performance Gap

• Difference between what organization could do and
  what organization is doing.

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Self-Assessment Gap Analysisof Four Key Areas

1. Organizations strengths.
2. What can be done to take advantage of strengths.
3. Organizations weaknesses.
4. What can be done to alleviate weaknesses.

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Figure 5.2The Performance Gap
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OD in PracticeDiagnosis For Kodak (part 1 of 3)

• Kodak is attempting to transform to cutting edge
  of digital revolution.
• Kodak surveyed managers.
• Rearranged business in late 1990s.
• Limited in its scope and of little benefit.

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OD in Practice (part 2 of 3)

• Kodak known to favor caution over risk-taking.
• Kodak is chemical company that must transform
  into electronics company.
• Electronics highly competitive and Kodak has
  little experience with electronics.

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OD in Practice (part 3 of 3)

• New products and change.
• Kodak focuses attention on nonconsumer
  applications.
• Experiencing strong growth.
• New managers have proven track records.

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Data-Collection Process

• Data is an aggregation of

• Statistics.
• Opinions.
• Assumptions.

• Signs.
• Signals.
• Clues.
• Facts.

• Information is data that have form and structure.

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Data Collection Stages (part 1 of 4)

1. Definition of objectives.
2. Selection of factors.
3. Selection of data-gathering method.

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Data Collection Stages (part 2 of 4)

• Definition of Objectives
• Define objectives of change program.
• Identify preliminary diagnosis and further
  information required.

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Data Collection Stages (part 3 of 4)

• Selection of Key Factors
• Identify central variables.
• May be necessary to increase range and depth of
  data.

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Data Collection Stages (part 4 of 4)

• Selection of Data-Gathering Method
• Selection of one or more methods of gathering
  data.
• Nature of the problem helps determine method.
• Variety of methods may be used.

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Types of Methods (part 1 of 4)

• Secondary sources.
• Organization and industry data.
• Employee surveys or questionnaires.
• Useful with a large number of people.
• Data may lack richness.

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Types of Methods (part 2 of 4)

• Sociogram
• Visual method of recording and analyzing
  preferences in a group.
• Each member represented by circle.
• Communication represented by arrows indicating
  direction of choice.

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Figure 5.3Sociogram
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Types of Methods (part 3 of 4)

• Direct observation.
• Observing how people go about tasks.
• Interviews.
• One of most widely used methods.
• Direct, personal, and flexible.

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Types of Methods (part 4 of 4)

• Directed interview.
• Open-ended questions.
• Closed questions.
• Nondirected interview.

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Implementation ofData Collection

• Decide from whom data will be obtained.
• Select appropriate technique.
• Implement data-collection program.

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Analysis of Data

• Techniques used to analyze data dictated by
  method used to gather data.

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Guidelines for Evaluating Effectiveness of Data
Collection

• Validity of data.
• Time to collect data.
• Cost of data collection.
• Organization culture and norms.
• Hawthorne effect in data collecting.

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Our Changing WorldeBay, Center for Global
Commerce (part 1 of 2)

• eBay has become marketplace of world.
• eBay driven by understanding data.
• CEO Whitman says, If you cant measure it, you
  cant control it.
• Understanding data is how eBay learns about its
  customers.

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Our Changing World (part 2 of 2)

• Changes at eBay are like needle-moving.
• Make small changes to make small gains.
• Danger is that eBay becomes obsessed with data
  and measurements.
• You have to be careful because you could measure
  too much, Whitman says.

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Diagnostic Models

• Of OD practitioners, 70 reported using a model
  to assist in identifying problems.
• Models may be used to analyze structure, culture,
  and behavior of organization.

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Types of Diagnostic Models

• Analytical
• Emergent-group behavior
• Management practitioner

• Sociotechnical systems
• Cause maps and social network analysis
• Force-field analysis

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Analytical Model

• Used for interdepartmental issues.
• Examines characteristics of departments.
• Objective to help departments achieve integration.

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Table 5.1Orientation of Functional Departments
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Emergent-Group Behavior Model

• Used to analyze interdependence of groups.
• Collects data on activities, interactions, and
  norms.

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Management Practitioner Model
Six basic factors are analyzed

• Basic planning.
• General business practices.
• Finance.

• Advertising and promotion.
• Market research.
• Personnel.

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Sociotechnical Systems Model

• Two interrelated systems in organization
• Social system. Technical system.
• The 2 systems are interrelated.
• Diagnosis determines interrelationships and type
  of feedback required.

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Cause Maps and Social Network Analysis Models

• Cause mapsmathematical representations of
  relationships among variables.
• Social network analysismathematical
  representation of individual and group.
• Analysis reveals important interdependencies.

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Force-Field Analysis Model(part 1 of 2)

• Behavior balance between forces working in
  opposite directions.
• Restraining forces - act to keep organization
  stable.
• Driving forces - act to change organization.

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Force-Field Analysis Model(part 2 of 2)

• When forces equal, organization in
  quasi-stationary state of equilibrium.
• Analysis determines forces to increase or
  decrease.

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Figure 5.4Force-Field Analysis Model
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Figure 5.5Example of Use of Force-Field Analysis
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Red Flags in Diagnosis

• Confidentiality of data.
• Over diagnosis.
• Crisis diagnosis.
• Overwhelming diagnosis.
• Practitioners favorite diagnosis.
• Diagnosis of symptom.

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Key Words and Concepts

• Analytical model - Examines characteristics of
  departments. Objective to help departments
  achieve integration.
• Cause maps - uses mathematical representations of
  causal relationships among variables.

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• Clique - in a sociogram, when three or more
  persons select one another.
• Closed questions - specific questions normally
  answered yes or no.
• Confidentiality - privileged communications that
  should not be divulged.

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• Data - unstructured, unformed facts.
• Diagnosis - analysis of problem(s).
• Directed interview - interview in which specific
  information is sought.
• Driving forces - put pressure on organization to
  change.

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• Emergent-group behavior model - used to analyze
  interdependence of groups.
• Equilibrium restraining and driving forces for
  change equal or in balance.
• Force-field analysis model - weights forces for
  and against change.

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• Hawthorne effect - act of investigating or
  observing may influence the behavior of those
  being investigated.
• Information - data that has structure and form.
• Isolates individuals within a group who are
  chosen rarely by others.

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• Mutual choice - when individuals within a group
  choose one another.
• Nondirected interview - interview direction is
  chosen by respondent.
• One-way choice - when individual in group chooses
  another but is not chosen in return.

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• Open-ended questions - allows respondent to be
  unrestrained and to direct interview.
• Performance gap - difference between desired and
  actual performance.
• Questionnaires - method of gathering data
  normally used for large number of responses.

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• Restraining forces - forces that act to keep
  organization stable.
• Social network analysis model - uses
  mathematical representation of relationships
  between individuals or groups and reveals
  interdependencies.

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• Sociogram - diagram of relationships and
  interactions within group.
• Sociometric approach technique for collecting
  quantitative data on work groups. Result of
  approach is sociogram.

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• Sociotechnical systems model - determines how
  social and technological systems interrelate and
  the feedback between subsystems.
• Stars those highly chosen individuals.

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Preparations for Next Chapter

• Read Chapter 6.
• Prepare for OD Skills Simulation 6.1. Read the
  Company Situation and complete Step 1.
• Read and analyze Case The Hexadecimal Company.