Chapter 5

The Diagnostic Process

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 Learning Objectives (part 1 of 2)
• Identify system parameters.
• Recognize symptoms, problems, and
causes of ineffectiveness.
• Recognize techniques for gathering
information.

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 Learning Objectives (part 2 of 2)
• Describe major diagnostic models and
techniques used in OD programs.
• Apply systematic diagnosis to
organizational situations.

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 Figure 5.1
Stage 3 of OD’s 5 Stages

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 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.

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 Diagnosing Problem Areas
(part 2 of 2)

Analyzes data on organization’s:

– Structure.
– Administration.
– Interaction.
– Procedures.
– Interfaces.
– Other elements.

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 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.

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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.

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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: Problem 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 5.2
The Diagnostic Process

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

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 Figure 5.3
The Performance Gap

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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.

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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.

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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)
Stage 1: Definition of Objectives
• Define objectives of change program.
• Identify preliminary diagnosis and
further information required.

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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.

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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.

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

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 Types of Data-Gathering
Methods (part 2 of 3)
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.

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 Figure 5.5
Example of Sociogram

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 Types of Data-Gathering
Methods (part 3 of 3)
4. Direct observation.
– Observing how people go about tasks.
5. Interviews.
– Direct, personal, and flexible.
– One of most widely used methods.
– Directed interview.
– 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.
• Type of analysis decided prior to data
collection.

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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.

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 Diagnostic Models
• Models may be used to:
– Analyze structure, culture, and behavior of
organization.
• Models play a critical role.
• Provide conceptual framework to
understand organization.

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 Types of Diagnostic Models
• Differentiation-integration model.
• Sociotechnical systems.
• Force-field analysis.

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 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.

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 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.

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 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.

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 Table 5.1
Example of Survey Results Using the
Differentiation-and-Integration Model

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 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.

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 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.

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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 5.6
Force-Field Analysis Model

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 Figure 5.7
Example of the Use of Force-Field Analysis

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 Warning Signs in Diagnosis
• Confidentiality of data.
• Over-diagnosis.
• Crisis diagnosis.
• Threatening and overwhelming
diagnosis.
• Practitioner’s favorite diagnosis.
• Diagnosis of symptoms, not problems.
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 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.
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• 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.

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 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.
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• 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.
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 Key Words and Concepts
• Clique.
– In a sociogram, when 3 or more persons
select one another.
• Closed questions.
– Specific questions normally answered yes
or no.
• Data.
– Unstructured, unformed facts.
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• 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.

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• Directed interview.
– 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.

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• Force-field analysis model.
– 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.

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• 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.

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• Open-ended questions.
– 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.

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• Restraining forces.
– 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.

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• 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.

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 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.
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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.

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 An Experiential Approach to Organization Development 8 th edition Chapter 5
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