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Diagnosing Organizational Effectiveness A Roadmap toward Corporate Sustainability
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object]
Comprehensive Model for  Diagnosing Organizational Systems
What is Diagnosis? ,[object Object],[object Object]
High Politics Organization: Common Approach to Business Problems DOES THE  THING WORK? DON’T MESS  WITH IT DID YOU MESS WITH IT? YOU DUMB *#@>!! DOES ANYONE KNOW? WILL YOU CATCH HELL? HIDE IT TRASH IT YOU POOR $#@! ~*%$ CAN YOU BLAME SOMEONE ELSE? NO PROBLEM YES NO YES NO NO YES YES YES NO
A. ORGANIZATIONAL LEVEL B. GROUP LEVEL C. INDIVIDUAL LEVEL - General Environment - Industry Structure Inputs Design Components Organization Effectiveness Outputs Strategy Structure Culture Human Resources Technology - Organization Design Inputs Design Components Team Effectiveness e.g., quality of work life, performance Outputs Goal Clarity Task Structure Group Functioning Group Composition Group Norms - Organization Design - Group Design - Personal Characteristics Inputs Design Components Individual Effectiveness e.g., job satisfaction, personal development Outputs Skill Variety Task Identity Autonomy Task Significance Feedback about Results Comprehensive Model for Diagnosing Organization
Organizational-Level Diagnosis
Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy Organization  Effectiveness General Environment Industry Structure Inputs Design Components Outputs
General Environment General Environment ,[object Object],[object Object]
Five Forces of Industry Structure Supplier Power Threats of Entry Buyer Power Threats of Substitutes Rivalry among Competitors Industry Structure
Strategy Strategy ,[object Object],[object Object]
Mission – Why We Exist Vision – What We Want to Be Values – What’s Important to Us Strategy :  Our Game Plan Strategy Map : Translate the Strategy into Action Strategy Formulation Analysis of General Environment and Industry Structure Analysis of Organization’s Core Competence
Strategy :  Our Game Plan Strategy Map : Translate the Strategy Strategic Outcomes Satisfied Shareholders Delighted Customers Excellent Processes Motivated Workforce Strategy Formulation
Structure Structure ,[object Object],[object Object]
Culture Culture ,[object Object],[object Object]
Elements of Corporate Culture Formation Top Management View Organization System and Policy Industry Characteristics Organization Structure Profile of Employees Corporate Culture
Human Resources Systems  Human Resources Systems ,[object Object],[object Object]
Recruitment & Selection Training &  Development Performance  Management Reward  Management Career  Management HR  Systems Business Strategy Business Result Human Resources Systems
Technology  Technology ,[object Object],[object Object]
Organizational-Level Diagnosis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy General Environment Industry Structure Inputs Design Components Does the organization strategic orientation fit with the inputs?
Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy Design Components Do the design components fit with each other?
Group-Level Diagnosis
Group Functioning Group-Level Diagnosis Group Norms Group  Composition Task  Structure Goal  Clarity Organization Design Team  Effectiveness Inputs Design Components Outputs
Organization Design Organization Design ,[object Object],[object Object]
Group Functioning  is the underlying basis of group life Group Norms  are member beliefs about how the group should perform task Group Composition  concerns the membership of groups Task Structure  is concerned with how the group’s work is designed Goal Clarity  involves how well the group understand its objectives Group Components
[object Object],[object Object],[object Object],Goal Clarity Goal  Clarity
[object Object],[object Object],Task Structure Task Structure
[object Object],[object Object],Group Functioning Group Functioning
[object Object],[object Object],[object Object],Group Composition Group Composition
[object Object],[object Object],Group Norms Group Norms
Group-Level Diagnosis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Individual-Level  Diagnosis
Task  Significance Feedback Autonomy Task  Identity Skill  Variety Organization Design Group Design Personal  Characteristics  (skill, knowledge attitude) Individual Effectiveness Individual-Level Diagnosis Inputs Design Components Outputs
Organization Design ,[object Object],[object Object],[object Object],Group Design Individual-Level Diagnosis
Personal Characteristics ,[object Object],[object Object],Individual-Level Diagnosis
Individual Jobs Dimensions Five Key  Dimensions Autonomy Feedback About Results Task Significance Task Identity Skill Variety
Individual Jobs Dimensions Autonomy The degree to which a job provides freedom and discretion in scheduling the work and determining work methods. Feedback About Results The degree to which a job provides employee with direct and clear information about the effectiveness of task performance Task Significance The degree to which a job has a significant impact on other people’s lives Task Identity The degree to which the job requires completion of a whole and identifiable piece of work Skill Variety The degree to which the job requires a variety of different activities
Job Characteristics Model - Hackman/Oldham Core Job Dimension Skill Variety Task Identity Task Significance Autonomy Feedback Psychological States Personal and Work Outcomes Experienced meaningfulness of the wok Experienced responsibility for outcomes of the work Knowledge of the actual results of the work activities ,[object Object],[object Object],[object Object],[object Object]
Individual-Level Diagnosis ,[object Object],[object Object],[object Object]
Individual-Level Diagnosis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Designing Effective  Intervention
[object Object],Intervention Intervention ,[object Object]
[object Object],[object Object],Effective Intervention Two Major Criteria to Define an Effective Intervention
Intervention Success Factors Key Factors that can affect intervention success Readiness for Change Capability to Change Capability of the Change Agent Cultural Context
Types of Intervention Human Process Intervention  Types of Intervention Structural  Intervention Human Resource Management Intervention Strategic  Intervention
Process Consultation Examples of  Human Process Intervention  Team Building This intervention focuses on interpersonal relations and social dynamics occurring in work groups. This intervention helps work groups become more effective in accomplishing task
Structural Design Examples of  Structural Intervention  Downsizing This change process concerns the organization’s division of labor – how to specialize task performances. This intervention reduces costs and bureaucracy by decreasing size of the organization Reengineering This intervention radically redesign the organization’s core work process to create more responsive performance.
Performance Management Examples of  Human Resources  Management Intervention Career Planning & Development This intervention is a systematic process to link between corporate goal settings and reward systems. This intervention helps people choose career paths and attain career objectives. Reward System This intervention involves the design of organizational rewards to improve employee satisfaction and performance.
Merger and Acquisition Examples of  Strategic Intervention Cultural Change This intervention is a systematic process to integrate two or more organizations. This intervention helps organizations develop cultures appropriate to their strategies and environment. Organizational Learning This intervention seeks to enhance an organization’s capability to acquire and deploy new knowledge.
Institutionalizing Interventions  Effective Institutionalization Process Intervention Enhance Organization Performance
Factors Affecting Institutionalization Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Institutionalization Process
Organization Characteristics: Congruence This is the degree to which an intervention is perceived as being in harmony with the organization’s strategy, and structure; its current environment; and other changes taking place. Stability of Environment and Technology This involves the degree to which the organization’s environment and technology are changing.
Organization Characteristics: Unionization Diffusion of interventions may be more difficult in unionized settings, especially if the changes affect unions contract issues, such as salary and fringe benefit, job design, and employee flexibility.
Intervention Characteristics: Goal Specifity This involves the extent to which intervention goals are specific rather than broad. Programmability This involves the degree to which the changes can be programmed or the extent to which the different intervention characteristics can be specified early in advance to enable socialization, commitment, and reward allocation.
Intervention Characteristics: Level of  Change Target This concerns the extent to which the change target is the total organization, rather than a department or small work group. Internal  Support This refers to the degree to which there is an internal support system to guide the change process.
Intervention Characteristics: Sponsorship This concerns the presence of a powerful sponsor who can initiate, allocate, and legitimize resources for the intervention.
Recommended Further Readings ,[object Object],[object Object],[object Object]
End of Material

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Diagnosing Organizational Effectiveness

  • 1. Diagnosing Organizational Effectiveness A Roadmap toward Corporate Sustainability
  • 2.
  • 3. Comprehensive Model for Diagnosing Organizational Systems
  • 4.
  • 5. High Politics Organization: Common Approach to Business Problems DOES THE THING WORK? DON’T MESS WITH IT DID YOU MESS WITH IT? YOU DUMB *#@>!! DOES ANYONE KNOW? WILL YOU CATCH HELL? HIDE IT TRASH IT YOU POOR $#@! ~*%$ CAN YOU BLAME SOMEONE ELSE? NO PROBLEM YES NO YES NO NO YES YES YES NO
  • 6. A. ORGANIZATIONAL LEVEL B. GROUP LEVEL C. INDIVIDUAL LEVEL - General Environment - Industry Structure Inputs Design Components Organization Effectiveness Outputs Strategy Structure Culture Human Resources Technology - Organization Design Inputs Design Components Team Effectiveness e.g., quality of work life, performance Outputs Goal Clarity Task Structure Group Functioning Group Composition Group Norms - Organization Design - Group Design - Personal Characteristics Inputs Design Components Individual Effectiveness e.g., job satisfaction, personal development Outputs Skill Variety Task Identity Autonomy Task Significance Feedback about Results Comprehensive Model for Diagnosing Organization
  • 8. Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy Organization Effectiveness General Environment Industry Structure Inputs Design Components Outputs
  • 9.
  • 10. Five Forces of Industry Structure Supplier Power Threats of Entry Buyer Power Threats of Substitutes Rivalry among Competitors Industry Structure
  • 11.
  • 12. Mission – Why We Exist Vision – What We Want to Be Values – What’s Important to Us Strategy : Our Game Plan Strategy Map : Translate the Strategy into Action Strategy Formulation Analysis of General Environment and Industry Structure Analysis of Organization’s Core Competence
  • 13. Strategy : Our Game Plan Strategy Map : Translate the Strategy Strategic Outcomes Satisfied Shareholders Delighted Customers Excellent Processes Motivated Workforce Strategy Formulation
  • 14.
  • 15.
  • 16. Elements of Corporate Culture Formation Top Management View Organization System and Policy Industry Characteristics Organization Structure Profile of Employees Corporate Culture
  • 17.
  • 18. Recruitment & Selection Training & Development Performance Management Reward Management Career Management HR Systems Business Strategy Business Result Human Resources Systems
  • 19.
  • 20.
  • 21. Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy General Environment Industry Structure Inputs Design Components Does the organization strategic orientation fit with the inputs?
  • 22. Organizational-Level Diagnosis Culture Technology Human Resources Systems Structure Strategy Design Components Do the design components fit with each other?
  • 24. Group Functioning Group-Level Diagnosis Group Norms Group Composition Task Structure Goal Clarity Organization Design Team Effectiveness Inputs Design Components Outputs
  • 25.
  • 26. Group Functioning is the underlying basis of group life Group Norms are member beliefs about how the group should perform task Group Composition concerns the membership of groups Task Structure is concerned with how the group’s work is designed Goal Clarity involves how well the group understand its objectives Group Components
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 34. Task Significance Feedback Autonomy Task Identity Skill Variety Organization Design Group Design Personal Characteristics (skill, knowledge attitude) Individual Effectiveness Individual-Level Diagnosis Inputs Design Components Outputs
  • 35.
  • 36.
  • 37. Individual Jobs Dimensions Five Key Dimensions Autonomy Feedback About Results Task Significance Task Identity Skill Variety
  • 38. Individual Jobs Dimensions Autonomy The degree to which a job provides freedom and discretion in scheduling the work and determining work methods. Feedback About Results The degree to which a job provides employee with direct and clear information about the effectiveness of task performance Task Significance The degree to which a job has a significant impact on other people’s lives Task Identity The degree to which the job requires completion of a whole and identifiable piece of work Skill Variety The degree to which the job requires a variety of different activities
  • 39.
  • 40.
  • 41.
  • 42. Designing Effective Intervention
  • 43.
  • 44.
  • 45. Intervention Success Factors Key Factors that can affect intervention success Readiness for Change Capability to Change Capability of the Change Agent Cultural Context
  • 46. Types of Intervention Human Process Intervention Types of Intervention Structural Intervention Human Resource Management Intervention Strategic Intervention
  • 47. Process Consultation Examples of Human Process Intervention Team Building This intervention focuses on interpersonal relations and social dynamics occurring in work groups. This intervention helps work groups become more effective in accomplishing task
  • 48. Structural Design Examples of Structural Intervention Downsizing This change process concerns the organization’s division of labor – how to specialize task performances. This intervention reduces costs and bureaucracy by decreasing size of the organization Reengineering This intervention radically redesign the organization’s core work process to create more responsive performance.
  • 49. Performance Management Examples of Human Resources Management Intervention Career Planning & Development This intervention is a systematic process to link between corporate goal settings and reward systems. This intervention helps people choose career paths and attain career objectives. Reward System This intervention involves the design of organizational rewards to improve employee satisfaction and performance.
  • 50. Merger and Acquisition Examples of Strategic Intervention Cultural Change This intervention is a systematic process to integrate two or more organizations. This intervention helps organizations develop cultures appropriate to their strategies and environment. Organizational Learning This intervention seeks to enhance an organization’s capability to acquire and deploy new knowledge.
  • 51. Institutionalizing Interventions Effective Institutionalization Process Intervention Enhance Organization Performance
  • 52.
  • 53. Organization Characteristics: Congruence This is the degree to which an intervention is perceived as being in harmony with the organization’s strategy, and structure; its current environment; and other changes taking place. Stability of Environment and Technology This involves the degree to which the organization’s environment and technology are changing.
  • 54. Organization Characteristics: Unionization Diffusion of interventions may be more difficult in unionized settings, especially if the changes affect unions contract issues, such as salary and fringe benefit, job design, and employee flexibility.
  • 55. Intervention Characteristics: Goal Specifity This involves the extent to which intervention goals are specific rather than broad. Programmability This involves the degree to which the changes can be programmed or the extent to which the different intervention characteristics can be specified early in advance to enable socialization, commitment, and reward allocation.
  • 56. Intervention Characteristics: Level of Change Target This concerns the extent to which the change target is the total organization, rather than a department or small work group. Internal Support This refers to the degree to which there is an internal support system to guide the change process.
  • 57. Intervention Characteristics: Sponsorship This concerns the presence of a powerful sponsor who can initiate, allocate, and legitimize resources for the intervention.
  • 58.