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Diagnosing Organizations: A Systematic Approach to Organizational Development and Change

In Chapter Five of *Organization Development and Change*, Cummings and Worley present key diagnostic tools essential for understanding organizations at a systemic level. This chapter defines diagnosis as a collaborative process and emphasizes the importance of understanding inputs, outputs, and organizational components. It highlights critical aspects such as the Open Systems Model, key alignment questions, and the structural factors influencing organizational effectiveness. By examining design components like strategy, technology, and culture, students learn to assess and improve organizational performance effectively.

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Diagnosing Organizations: A Systematic Approach to Organizational Development and Change

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  1. Organization Development and Change Chapter Five: Diagnosing Organizations Thomas G. Cummings Christopher G. Worley

  2. Learning Objectivesfor Chapter Five • To equip students with a general framework of OD diagnostic tools from a systematic perspective • To define diagnosis and to explain how the diagnostic process provides a practical understanding of problems at the organizational level of analysis Cummings & Worley, 8e (c)2005 Thomson/South-Western

  3. Diagnosis Defined Diagnosis is a collaborative process between organizational members and the OD consultant to collect pertinent information, analyze it, and draw conclusions for action planning and intervention. Cummings & Worley, 8e (c)2005 Thomson/South-Western

  4. Open Systems Model Environment • Inputs • Information • Energy • People • Outputs • Goods • Services • Ideas • Transformations • Social Component • Technological • Component Feedback Cummings & Worley, 8e (c)2005 Thomson/South-Western

  5. Properties of Systems • Inputs, Transformations, and Outputs • Boundaries • Feedback • Equifinality • Alignment Cummings & Worley, 8e (c)2005 Thomson/South-Western

  6. Diagnosing Organizational Systems • The key to effective diagnosis is… • Know what to look for at each organizational level • Recognize how the levels affect eachother Cummings & Worley, 8e (c)2005 Thomson/South-Western

  7. Organization-Level Diagnostic Model Outputs Inputs Design Components Technology Strategy Structure HR Measurement Systems Systems General Environment Industry Structure Organization Effectiveness Culture Cummings & Worley, 8e (c)2005 Thomson/South-Western

  8. Key Alignment Questions • Do the Design Components fit with the Inputs? • Are the Design Components internally consistent? Do they fit and mutually support each other? Cummings & Worley, 8e (c)2005 Thomson/South-Western

  9. Organization-Level Inputs • General Environment • External forces that can directly or indirectly affect the attainment of organizational objectives • Social, technological, ecological, economic, and political factors • Industry Structure • External forces (task environment) that can directly affect the organization • Customers, suppliers, substitute products, new entrants, and rivalry among competitors Cummings & Worley, 8e (c)2005 Thomson/South-Western

  10. Organization Design Components • Strategy • the way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage • Structure • how attention and resources are focused on task accomplishment • Technology • the way an organization converts inputs into products and services Cummings & Worley, 8e (c)2005 Thomson/South-Western

  11. Organization Design Components • Human Resource Systems • the mechanisms for selecting, developing, appraising, and rewarding organization members • Measurement Systems • methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations Cummings & Worley, 8e (c)2005 Thomson/South-Western

  12. Organization Design Components • Organization Culture • The basic assumptions, values, and norms shared by organization members • Represents both an “outcome” of organization design and a “foundation” or “constraint” to change Cummings & Worley, 8e (c)2005 Thomson/South-Western

  13. Outputs • Organization Performance • e.g., profits, profitability, stock price • Productivity • e.g., cost/employee, cost/unit, error rates, quality • Stakeholder Satisfaction • e.g., market share, employee satisfaction, regulation compliance Cummings & Worley, 8e (c)2005 Thomson/South-Western

  14. Alignment • Diagnosis involves understanding each of the parts in the model and then assessing how the elements of the strategic orientation align with each other and with the inputs. • Organization effectiveness is likely to be high when there is good alignment. Cummings & Worley, 8e (c)2005 Thomson/South-Western

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