Chapter 4

Diagnostic Process

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 Learning Objectives
• Identify system parameters and recognize the
symptoms, problems, and causes of organizational
ineffectiveness.
• Recognize the various techniques for gathering
information from client systems.
• Describe the major diagnostic models and techniques
used in OD programs.
• Apply a systematic diagnosis to organizational
situations.

Chapter 4
Experiential Approach to Organization Development 8 edition
th
Slide 2
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 Figure 4.1
Stage 2 of OD’s 5 Stages

Cultural
Profiling

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 Data Mining at McDonald’s?
(part 1 of 2)

McDonald’s 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.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Data Mining at McDonald’s?
(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 organization’s current
performance and desired level of
quality.

Experiential Approach to Organization Development 8th edition Chapter 4

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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Critical Issues in Diagnosis
Simplicity. Primary factors.
Visibility. Measure what’s
Involvement. important.
Sense of urgency.

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 The Process
Diagnosis is cyclical process involving:
• Data gathering. • Interpretation.
• Identification of • Potential action
problem areas. programs.

Experiential Approach to Organization Development 8th edition Chapter 4

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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 5.1
The Diagnostic Process

Experiential Approach to Organization Development 8th edition Chapter 4

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 Performance Gap
Difference between what organization
could do and what organization is doing.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Self-Assessment Gap
Analysis
of Four Key Areas
1. Organization’s strengths.
2. What can be done to take advantage
of strengths.
3. Organization’s weaknesses.
4. What can be done to alleviate
weaknesses.

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 Figure 5.2
The Performance Gap

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 OD in Practice:
Diagnosis 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.

Experiential Approach to Organization Development 7 th edition Chapter 4

Slide 17
 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.

Experiential Approach to Organization Development 8th edition Chapter 4

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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Data-Collection Process
Data is an aggregation of:

• Signs. • Statistics.
• Signals. • Opinions.
• Clues. • Assumptions.
• Facts.
Information is data that have form and structure.

Chapter 4
Experiential Approach to Organization Development 8th edition Slide 20
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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Types of Methods (part 1 of 4)
1. Secondary sources.
2. Organization and industry data.
3. Employee surveys or questionnaires.
Useful with a large number of people.
Data may lack “richness.”

Experiential Approach to Organization Development 8th edition Chapter 4

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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 5.3
Sociogram

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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.

Chapter 4
Experiential Approach to Organization Development 8th edition Slide 28
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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 of
Data 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.
(tendency for people to modify their behavior because they know
they are being studied)

Experiential Approach to Organization Development 8th edition Chapter 4

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 Our Changing World:
eBay, Center for Global
Commerce (part 1 of 2)
eBay has become marketplace of world.
eBay driven by understanding data.
CEO Whitman says, “If you can’t measure
it, you can’t control it.”
Understanding data is how eBay learns
about its customers.

Experiential Approach to Organization Development 8th edition Chapter 4

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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.
Experiential Approach to Organization Development 8th edition Chapter 4
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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.

Experiential Approach to Organization Development 8th edition Chapter 4

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 Types of Diagnostic Models
• Analytical • Sociotechnical systems
• Emergent-group • Cause maps and social
behavior network analysis
• Management • Force-field analysis
practitioner

Experiential Approach to Organization Development 8th edition Chapter 4

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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 5.1
Orientation 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. • Advertising and
• General business promotion.
practices. • Market research.
• Finance. • 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 maps—mathematical
representations of relationships among
variables.
Social network analysis—mathematical
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.
Caution Risk
Change/
stability
Experiential Approach to Organization Development 8th edition Chapter 4
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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 5.4
Force-Field Analysis Model

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 Figure 5.5
Example of Use of Force-Field Analysis

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 Red Flags in Diagnosis
Confidentiality of data.
Over diagnosis.
Crisis diagnosis.
Overwhelming diagnosis.
Practitioner’s favorite diagnosis.
Diagnosis of symptom.

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