The Diagnostic Process Chapter 5 The Diagnostic Process An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives (part 1 of 2) Identify system parameters. Recognize symptoms, problems, and causes of ineffectiveness. Recognize techniques for gathering information. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives (part 2 of 2) Describe major diagnostic models and techniques used in OD programs. Apply systematic diagnosis to organizational situations. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.1 Stage 3 of OD’s 5 Stages An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Diagnosing Problem Areas (part 1 of 2) Identification of areas for improvement. Assess current performance and desired level of quality. Provides information that allows for faster-reacting organization. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Diagnosing Problem Areas (part 2 of 2) Analyzes data on organization’s: Structure. Administration. Interaction. Procedures. Interfaces. Other elements. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

What is Diagnosis? Systematic approach to understand present state of organization. Specifies nature of problem and causes. Provides basis for selecting strategies. Involves systematic analysis of data. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Critical Issues in Diagnosis Simplicity. Visibility. Involvement. Primary factors. Measure what’s important. Sense of urgency. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

The Process Diagnosis is cyclical process involving: Data gathering. Identification of problem areas. Interpretation. Potential action programs. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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? An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Diagnosis (part 2 of 2) Step 6: Problem areas identified. Step 7: Is client motivated? Step 8: Diagnosis and work on problem. Step 9: Monitor and assess results. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.2 The Diagnostic Process An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Performance Gap Difference between what organization could do and what organization is doing. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.3 The Performance Gap An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Self-Assessment Gap Analysis of Four Key Areas Organization’s strengths. What can be done to take advantage of strengths. Organization’s weaknesses. What can be done to alleviate weaknesses. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data-Collection Process Data is an aggregation of: Signs. Signals. Clues. Facts. Statistics. Opinions. Assumptions. Information is data that have form and structure. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data Collection Stages (part 1 of 4) Definition of objectives. Selection of factors. Selection of data-gathering method. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data Collection Stages (part 2 of 4) Stage 1: Definition of Objectives Define objectives of change program. Identify preliminary diagnosis and further information required. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data Collection Stages (part 3 of 4) Stage 2: Selection of Key Factors Identify central variables. May be necessary to increase range and depth of data. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data Collection Stages (part 4 of 4) Stage 3: Selection of Data-Gathering Method Selection of one or more methods. Nature of the problem helps determine method. Variety of methods may be used. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Types of Data-Gathering Methods (part 1 of 3) Secondary sources. Organization and industry data. Employee surveys or questionnaires. Useful with a large number of people. Data may lack “richness.” An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Types of Data-Gathering Methods (part 2 of 3) Sociogram. Visual method of recording and analyzing preferences in a group. Each member represented by circle. Communication represented by arrows indicating direction of choice. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.5 Example of Sociogram An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Types of Data-Gathering Methods (part 3 of 3) Direct observation. Observing how people go about tasks. Interviews. Direct, personal, and flexible. One of most widely used methods. Directed interview. Nondirected interview. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Implementation of Data Collection Decide from whom data will be obtained. Select appropriate technique. Implement data-collection program. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Analysis of Data Techniques used to analyze data. Dictated by method used to gather data. Type of analysis decided prior to data collection. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Diagnostic Models Models may be used to: Models play a critical role. Analyze structure, culture, and behavior of organization. Models play a critical role. Provide conceptual framework to understand organization. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Types of Diagnostic Models Differentiation-integration model. Sociotechnical systems. Force-field analysis. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Differentiation-Integration Model (part 1 of 3) Stresses sound analytical diagnosis. Used for interdepartmental issues. Collects data on activities, interactions, and norms. Objective is to help departments achieve integration. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Differentiation-Integration Model (part 2 of 3) Steps in implementation of model: Begins with study of degree of differentiation between units. Then analyzes integration and cooperation required between units. Provides a basis for structural and cultural changes in departments. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Differentiation-Integration Model (part 3 of 3) Examines work units using 4 characteristics of environment: Degree of departmental structure. Time orientation of members. Interpersonal orientation of members toward others. Members’ orientation toward goals. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Table 5.1 Example of Survey Results Using the Differentiation-and-Integration Model An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Sociotechnical Systems Model Two interrelated systems in organization: Social system. Technical system. The 2 systems are interrelated. Diagnosis determines: Interrelationships. Type of feedback required between subsystems. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Force-Field Analysis Model (part 1 of 2) Behavior balance between opposing forces. Restraining forces. Act to keep organization stable. Driving forces. Act to change organization. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.6 Force-Field Analysis Model An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 5.7 Example of the Use of Force-Field Analysis An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Warning Signs in Diagnosis Confidentiality of data. Over-diagnosis. Crisis diagnosis. Threatening and overwhelming diagnosis. Practitioner’s favorite diagnosis. Diagnosis of symptoms, not problems. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application Performance Gap at eBAY eBay’s business model was: Auction of merchandise on Internet. Has no warehouses, does not take possession of merchandise. Revenue comes from listing fees, advertising, and PayPal. Revenue and profit down substantially. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

eBay now gathers data to learn about customers. Data showed strategy of on-line auctions obsolete. Now focuses on fixed price sales of: Collectables, overstocked items, and last years models. But business continues to fall short of expectations. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application Data Collection and Diagnosis at McDonald’s In ‘02 McDonald’s identified a problem based on earnings and profitability. Lack of data on customers prevented identifying problem. In ‘03 adopted system to gather data over long term. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Data analysis showed solution: Data obtained from: Mystery diners who graded stores. In-depth interviews with customers. Data analysis showed solution: Deliver better experience for customers. Solution included better food and more choices. Coffee station part of solution: Increase traffic at existing stores. Bring in customers at non-dinner hours. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Key Words and Concepts Clique. Closed questions. Data. In a sociogram, when 3 or more persons select one another. Closed questions. Specific questions normally answered yes or no. Data. Unstructured, unformed facts. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Differentiation and integration model. Diagnosis. Analysis of problem(s). Diagnostic models. Provide conceptual framework to understand organization. How well they function as a system. Differentiation and integration model. Diagnostic model that stresses analytical diagnosis as basis for planned change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Directed interview. Driving forces. Equilibrium. Interview in which specific information is sought. Driving forces. Put pressure on organization to change. Equilibrium. Restraining and driving forces for change being equal or in balance. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Force-field analysis model. Hawthorne effect. Weighs forces for and against change. Hawthorne effect. Act of observing may influence behavior of those being investigated. Information. Data that has structure and form. Isolates. In a sociogram, individuals within group who are chosen rarely by others. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Nondirected interview. One-way choice. Mutual choice. In a sociogram, when individuals within group choose one another. Nondirected interview. Interview direction is chosen by respondent. One-way choice. In a sociogram, when individual in group chooses another but not chosen in return. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Open-ended questions. Performance gap. Questionnaires. 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. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Restraining forces. Sociogram. Sociometric approach. Forces that act to keep organization stable. Sociogram. Diagram of relationships and interactions within group. Sociometric approach. Technique for collecting quantitative data on work groups. Result of approach is sociogram. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Sociotechnical systems model. Determines how social and technological systems interrelate. Describes feedback between subsystems. Stars. Those highly chosen individuals in a sociogram. Surveys. Method of gathering data normally used for large number of responses. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skills Simulation 5.1 The Acquisition Decision Purpose. To experience and observe how information affects team decision making. Will allow you to experience and observe: How team members share task information. How various problem-solving strategies influence results. How collaboration and competition affect team problem solving. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Preparations for Next Chapter Read Chapter 6. Prepare for OD Skills Simulation 6.1. Complete Step 1. Read the Company Situation. Read and analyze Case: The Hexadecimal Company. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall