by In the field of corporate diagnosis is a process that involves the three steps of publicly entering a human system, collecting valid data about experiences, and feeding back to the system toward promoting corporate performance.
The effective diagnosis of organizational culture, and structural and operational strengths and weaknesses are fundamental to any successful organizational development intervention.
Since the beginnings of organizational development as a profession, diagnosis has moved from the purely behavioral towards a strategic and holistic business diagnostic approach, and from looking at human interventions in isolation to exploring the interactions of people in the context in which they operate. As organizations are more collaborative in nature, the traditional silo approach to diagnostics is becoming increasingly rare. Organizational development and in particular the diagnostic phase of activities is spreading from the occupational psychologists towards mainstream business. This is important for OD practitioners as the role is increasingly holistic.
The organizational diagnostic phase is often integrated within an overall OD process, commonly called “A consulting process“. An example of such a process is:
Entry → Diagnosis → Action Planning → Implementation → Termination
As the second phase in the consulting cycle, it is also the first fully operational phase of the consulting process or cycle. The purpose of the diagnosis is to examine the problem faced by the organization in detail, to identify factors and forces that are causing the problem and to prepare the collected information to decide how to implement possible solutions to the identified problems. The diagnosis of the problem is a separate phase from the solutions themselves.
The domains of organisational diagnosis can be conceived as bounded by four dimensions:
(1) Systems
(2) Components of the systems
(3) The coverage of area
(4) The surrounding external environment
1) Systems: An organisation can be considered as a combination of SET-Social-Economic-Technical systems. The social system, that is the peoples system, consists of psychological, social, cultural and political subsystems arising out of people at work as individuals, groups-and multiple groups in a techno-economic setting. The economic system includes procurement, allocation and utilisation of all resources, finance, cost marketing and the like, in a perspective setting made up by the other two systems-social and technical. The technical system includes work and technology required to perform the work in a perspective of socio-economic setting. Organisational diagnosis has often remained confined to any one of these systems.
2) Components of the systems: There are components in each system where the diagnosis is undertaken:
(a) Structure
(b) Process
(c) Function.
Structure refers to all elements in the organisation and their comparatively enduring and lasting relationships and arrangements which have formal sanctions. Process refers to the manner in which events are conducted sequentially. Function includes strategic variables, performance variable, results and achievements and end products.
3) The coverage of the area: The coverage of the domain refers essentially to the area of the organisation opened up for diagnostic investigation. This may be in terms of time, space, people, events or phenomena occurring within the organisation. The coverage may be classified into three categories:
(a) Singularity
(b) Plurality
(c) Totality of events in the life span of the organisation.
For example, a medical diagnostician may be called in to diagnose a single episode of ailment (singularity), or a number of episodes and ailments (plurality), or the total health of the patient (totality). A diagnostician similarly can be called in to investigate a single episode of say, a strike, a relationship in a given department, marketing of a particular product, one decision of a particular investment, and so on. Plurality of coverage indicates the opening up of the organisation to more than one specific episode for investigation. The range of plurality will vary. ‘Totality of coverage denotes a diagnosis based focused on the entire organisation, or on any phenomenon in its entirety.
4) The surrounding external environment: These domains are encircled by the environment. Organisational diagnosis can be undertaken on environment relation to any one of cells of the domains or without relating it to any specific cell.
Besides environmental investigations, the model thus provides 27 typologies of organisational diagnosis. Each typology, represented by each cell, has three dimensions. Economic-Structure-Plurality (ESP) will perhaps require the expertise of structure combined with knowledge of, say, engineering or chemistry. Social-Process Singularity (SPS) will call for the expertise of a social scientist who is a process diagnostician and is skilled in working on a single episode.
It is also possible that within each typology there are variant forms and emphases. For example, with in a social system there are psychological, sociological, political and cultural sub-systems, as mentioned before. Therefore, tlie specialisation of the diagnostician can further narrow down tlie focus of his diagnostic activity.
Need of Organisational Analysis
The organizational analysis may be done for different purposes. These include:
1) Enhancing the general understanding of the functioning of organizations
(The direct beneficiary is the researcher or the analyst rather than the organization). Such a study may aim at enhancing the understanding of human behavior through a study of it in an organisation, or to enhance the understanding of the society as reflected in organizational life.
2) Planning for growth and diversification
An analysis or a diagnostic study may be necessary for planning growth, diversification, expansion, etc. The organizational analysis may reveal the strengths that could be used for growth and diversification, weak spots that need to be removed in the new plans, the precautions to be taken, structural dimensions to be kept in mind, etc. Several insights may be provided on structure, people, systems, styles, technology, etc. that have implications for growth.
3) Improving Organisational Effectiveness or Planning General Improvements
Organizational Analysis may be used also for improving the general efficiency of an organization. On the basis of a diagnosis made out of the analysis action steps could be initiated in terms of toning up administration, introducing new management systems and processes, reduction of wasteful expenditure, introduction of time savers, change of personnel policies to enhance employee motivation, restructuring of some parts, training, elimination of unwanted structures and teasers, improvements in general health of the organisation etc.
4) Organizational Problem Solving
Whenever some subsystems departments, units, etc. fall sick or start creating problems a diagnosis may be undertaken with a view to identify the source of the problem and take corrective action. A sick unit, a bottleneck, a communication block, a poor performing department, frequently occurring conflict between two departments, repeated failures of a management system or an organizational process, a frequent violation of an organizational norm, fall in discipline, reduction in output absenteeism, increase in conflicts, etc. can all lead to the need for an organisational diagnosis of a part of the organization or the entire organisation.
Phases
The Diagnostic Cycle
The purpose of a diagnosis is to identify problems facing the organization and to determine their causes so that management can plan solutions.
An organizational diagnosis process is a powerful consciousness-raising activity in its own right, its main usefulness lies in the action that it induces.
The major steps of a diagnostic cycle include
Scouting: Clients and consultants together explore what needs to be studied. While the client presents problems and challenges, the consultant assesses the appropriate tools and techniques of research relevant to diagnose1 reconnaissance organizational problems and strengths. Both may agree on the methodology for investigation.
Contracting: Consultants and clients negotiate and agree on the nature of the diagnosis and terms and conditions that qualify client-consultant relations.
Study Design: The aims, objectives of the study, methods of study, measurement procedures, sampling, analysis, and administrative procedures etc., are planned.
Data Gathering: Data are gathered through primary and secondary measures to include interviews, personal observations, group discussions, work- shops, questionnaires and analysis of reports, procedures, rule books and other secondary data.
Analysis: The data are organized and analysed using relevant statistical tools and techniques and descriptive methodologies such as content analysis, critical incidents etc., and meaningfully summarized. Consultants (and sometimes clients) interpret them and prepare for feedback.
Feedback: Consultants present findings to clients and other members of the organization. Feedback may include explicit “recommendations or more general findings to stimulate, discussion, decision making, and where needed a further study.
In order to ensure effective diagnosis of an organization, it is suggested to handle the five processes related issues:
Purpose: “‘what are the goals of the study? How are they defined? What issues, challenges, and problems are to be studied? How the outcomes of the study are to be evaluated?
Design: What organizational features are to be studied, what units and individuals to be included for data gathering, What and how the data are collected and how the. design and methods of tlie study will be perceived by the members of the organization?
Support: and Cooperation: What is the support of the top management for the study, and what resources will the client organization contribute? What are the attitudes of other members of the organization and of external stakeholders towards the study?
Participation: To what extent the members of the organization are interested and therefore participate in the study in the various phases of gathering, interpreting, and reacting to the data?
Feedback: When, how, and in what format will the study’s feedback be given? Who will receive the feedback on the study and what use will they make of it? How the feedback; can be used for any further study?
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