Organisational Diagnosis

Block II-Unit 2. Diagnostic Methodology: Salient Features
Objectives: After going through this unit you should be able to:
appreciate the need for diagnostic methodology
understand the concept of open systems model
understand the framework to diagnose organizations
Structure
2.1 Introduction
2.2 Diagnosing the system, subunits and processes
2.3 The need for diagnostic methodology
2.4 The open systems model
2.5 Case Analysis
2.6 Summary
2.7 Self assessment / test questions
2.8 Suggested readings

2.1 Introduction
Diagnosing the system is at the heart of an action program. It is based on valid information about the current problems and opportunities. Diagnostic activities are designed to provide an accurate account of things as they really all. An understanding of these activities, as discussed in this unit is needed for two reasons. The first reason is to know the state of things as they are i.e. ‘what is’. The second purpose is to assess the effects or consequences of actions as and when they are initiated after the diagnosis.
Diagnosis is crucial for OD and change effort. It, therefore, requires methodology. Both, the client and the practitioner, have to be very careful regarding ‘what to look at’ and ‘how it is to be done’. It is therefore critical how one would proceed to diagnose the total organization and its subsystems. A critical and well laid out methodology helps the practitioners to start the diagnostic process in the right earnest.
2.2 Diagnosing the system, subunits and processes
Bringing improvement in an organization requires the examination of the present state of things. This kind of analysis focuses on two aspect. First is the diagnosis of subsystems, which taken together make up the entire organization. These subsystems are in the form of departments, functional areas, hierarchies, or teams. The second area for attention is the processes being carried out in the organization. Some of these processes are decision-making process, communication patterns, goal setting process, interpersonal relationship & roles, planning process, and management of conflict.
Therefore, the subsystems and the process becomes the focus of diagnostic activities. Each of the major aspect of the organization provides sufficient relevant information if probed carefully. The OD practitioner may be interested in all these target groups or some of them, as and when the need arises. For example, the initial diagnosis starts with the total organization and than moves on to different departments.
We consider that the information desired at organizational level is as follows:
What are the existing norms of the organization?
What is the prevailing organization culture?
What is the organization’s climate; Open vs. close, authoritarian vs. democratic?
Are organization goals and strategies understood and accepted by members?
What is organization’s performance?
What are the attitudes and feelings toward such things as compensation, supervision, top management etc.?
By carefully examining the organization or its subunits the necessary data is generated. In the approach we focus on the primary target groups to carry out the diagnosis of the organization.
An alternative way to diagnosis is to emphasise the organization’s principal process rather than its primary target groups. Each process provides sufficient information regarding the problem. Organization processes are the ‘what’ and how’ of the organization. That is what is going on? And how is it being achieved? Organization processes reflect organization in its dynamic and complex reality. We consider that the information desired at one of the processes, namely, managing interface relations is as follows:
What is the nature of relations between two groups?
Are goals and responsibilities clear?
What major problems does the group face?
Where does conflict exist?
What are the system norms for dealing with conflict?
What structural conditions promote/ inhibit effective interface management?
Likewise other process such as goal setting, decision-making, communication etc. also provide relevant information which throws light on the functioning of the organisation.
In practice the OD consultant works on both the areas that is target groups and processes.
2.3 The Need for Diagnostic Methodology
To diagnose an organization, organization members and OD practitioner need to have an idea about what information to collect and analyze. Choices about what to look for depend on how they perceive the organization. They look for the information in a systematic manner using the methodology, which is based on conceptual framework. Conceptual framework that people use to understand organizations are referred to as ‘diagnostic models’. The diagnostic methodology is based on the diagnostic models. They describe the relationship between different features of the organization, its context, and effectiveness.
This section presents a general framework for diagnosing organization rather than attempting to cover the diversity of OD diagnostic models. The framework draws upon the systems perspective. The methodology provides a useful starting point for diagnosing organization or departments.
2.4 The Open Systems Model
The open system model is a general system model for diagnosing organizations. The model represents an open system view of organizations that may be applied to diagnosis at three levels of analysis: the total organization, the work group, and the individual job or position.
Systems theory is a set of concepts and relationship describing the properties and behaviors of thing called ‘System’ – organizations, groups and people. Systems are viewed as unitary whole composed of parts or subsystem and serve to integrate the parts into a functioning unit.
Systems can vary in how open they are to their outside environment. ‘Open system’ exchange information and resources with their environment freely. They cannot completely control their own behavior and are influenced by external forces. For example many environmental conditions such as the availability of raw materials, customer demands, government regulation, new technology etc. affect the organizations. Systems are composed of inputs, transformations, and outputs; have boundaries and a feedback mechanism. Open systems display hierarchical order. Each higher level of system is composed of lower-level systems.
Diagnosing organization Systems
Organizations can be diagnosed at three levels, namely, organization level, group level, and individual level. Diagnosis can occur at all three levels, or it may be limited to problems occurring at a particular level. The key to effective diagnosis is to know what to look for at each level. It is also necessary to know how the levels affect each other. A particular relationship exists between two levels. For example, if you are diagnosing a work group, it is necessary to know what characteristics of group are important for its effectiveness and how the larger organization affects the group.
Figure 1 presents a model for diagnosing different organizational systems. It includes dimensions needed to understand organizational systems at three levels: organizational, group, and individual job. For each level, it shows:
(1) the inputs that the system has to work with,
(2) the key design components of the transformation subsystem, and
(3) The system’s outputs
Input’s transformation subsystem and output are interdependent system. Outputs would be effective when the design components fit and mutually supports the inputs. In figure 1 the fit is shown by double headed arrow; connecting inputs to design components and the mutual support is shown by linkages among the design components. Figure 1 shows how each organization level affects the lower levels. The external environment is an input to organization design; organization design is an input to group design, which serves as an input to individual design.
Organization Level Diagnosis
The diagnosis done at the organizational level is the systems perspective. The key areas to be diagnosed at this level are discussed below:
Inputs
To under stand the functioning of the organization we must look at inputs and design components and must examine the fit between the two. Strategy and external environment are the inputs which affect the organization design.

Figure 1 --Model for Diagnosing Organizations
Organizational Level
Design Components

Technology


Structure Culture Measurement
Systems


Human Resource Systems
Outputs
Inputs
Strategy
Environment

Organization Effectiveness








Design Components Group Level
Inputs
Organization Design
Task Structure


Performance Culture Measurement
Norms Systems


Interpersonal Relations



Group Effectiveness









Design Components Individual Level

Inputs
Organization Design

Group Design

Personal Characteristics
Technology


Structure Culture Measurement
Systems


Human Resource Systems


Individual Effectiveness







Source: T.G. Cumings and C.G. Worley, “ Organizational Development and Change”, 5th ed., St. Paul:West 1993.
Strategy is formulated to gain and sustain the competitive advantage in the large environment. Strategic choice often takes place along three dimensions. The products or services to be offered, the markets to be served, and values to guide the organization. External environment includes elements and forces that can affect the attainment of strategic objectives. The environment moves along a static-dynamic continuum and provides context within which organizations operate. Static environment is predictable while dynamic environment changes rapidly and is unpredictable. Organizations must be more responsive when operating in the dynamic environment.
Design components
Organizations have five major design components (1) technology (2) Structure (3) Measurement Systems (4) Human Resource System and (5) Culture
How organization convert raw material into product does depend on its technology. It is the core of the organizational design and includes production methods, work flow and equipment. Two dimensions of technological core influence other design component; technical interdependence and technical uncertainty.
Technical interdependence involves ways in which the different parts of a technological system arc related. High interdependence requires considerable coordination among task. For example, to bring out a new product the project development team must work together. Technical uncertainty refers to the amount of informa­tion processing and decision making required during task performance. Gen­erally, when tasks require high amounts of information processing and decision making, they are difficult to plan and routinize. The development of new software requires high level of coordination among the team members.
Structure includes the ways an organization divides labor or differentiates its parts-horizontally into departments and groups and vertically into managerial hierarchies. Horizontally, organizations may be divided by function, by product or service, or by some combination of both. Vertically, organizations may be tall and include many managerial levels or they may be relatively flat. Structure is also con­cerned with integration-joining and coordinating departments for overall task achievement. It involves specifying rules, procedures, goals, and plans for directing organizational behaviors. Measurement systems are methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations. Such data tell how well the organization is performing and are used to detect and control deviations from goals. For example, management control systems help to ensure that each department's activities are in line with overall company objectives.
Human Resource Systems include mechanisms for selecting, training, and de­veloping employees. These influence the mix of skills and personalities of organization members. Human resource systems also include the rewards used by organizations to encourage people to join and remain with the organization and to work toward specific objectives. Reward systems may be tied to performance measurement systems so that rewards are allocated on the basis of prespecified results.
Culture is concerned with the basic assumptions, values, and norms shared by organizational members. These cultural elements are generally taken for granted and serve to guide members' perceptions, thoughts, and actions. For example McDonald's culture emphasizes "efficiency," "speed," and "consis­tency." It orients employees to company goals and suggests the kinds of be­haviors necessary for success.
Fits
The diagnostic model in Figure 1 shows that the design components must have a fit with the input components if organization outputs (market share or net profits, for example) are to be effective. The following fits must take place between the inputs and design dimensions:
When strategic choice results in an environment that is highly dynamic (changing and uncertain), organization design should be organic. This means an adaptable set of technologies, structures, measurement systems, human resource systems, and culture. These components should support flexible and innovative organizational behaviors.
2. When strategy results in a static environment, organization design should be more mechanistic. The design components should be formalized and should support standardized organizational behaviors.
Group Level Diagnosis
After the organization level, the next level of diagnosis is the group. Many large organizations have groups or departments that are themselves huge. Diagnosis of large groups can follow the dimensions and relational fits applicable to organization-level diagnosis.
Often small departments and groups behave differently than large organizations. Therefore, there is a need for separate diagnostic models to reflect these differences. In this section, we discuss the approach of diagnosing small work groups. Such groups generally consist of a relatively small number of people working face-to-face on a shared task. They can be relatively permanent and perform an ongoing task, or they can be temporary and exist only to perform a certain task or to make a specific decision. Figure 1 shows the inputs, design components, out­puts, and relational fits for group-level diagnosis.
Inputs
Organization design is the major input to group design. It consists of the design components of the larger organization within which the group works. These include technology, structure, measurement system, human resource systems, and culture. The environment of work groups is affected by organizational design. It determines the technological characteristics of the group's task and influences the group behaviors. As discussed earlier, organization design can vary along an organic­/ mechanistic dimension. Organic designs support flexible and innovative behaviors; mechanistic designs are highly formalized and promote standardized behaviors.
Design Components
Figure 1 shows that groups have four major components: (1) task struc­ture, (2) composition, (3) performance norms, and (4) interpersonal relations.
Task structure is concerned with how the group's task is designed. Task structures can vary along two key dimensional -coordination of members' efforts and regulation of their task behaviors. The coordination dimension involves the degree to which group tasks are structured to promote effective interaction among group members. Coordination is important in groups per­forming interdependent tasks, such as project teams and problem solving groups. It is relatively unimportant in groups composed of members performing independent tasks, such as salespersons.­
The regulation dimension involves the degree to which members can control their own task behaviors and be relatively free from external controls. Self-regulation generally occurs when members can decide on such issues as work schedule, work methods, production goals, and membership.
Composition concerns the membership of groups. Members can differ on a number of dimensions which are relevant to group behavior. Demographic vari­ables, such as age, education, experience, and skills and abilities, can affect how people behave and relate to each other in groups. Demographics can determine whether the group is composed of people having task-relevant skills and knowledge, including interpersonal skills. People's internal needs can also influence group behaviors. Individual differences in social needs can deter­mine whether group membership is likely to be satisfying or stressful. Performance norms are member beliefs about how the group should perform its task and include acceptable levels of performance. Norms serve as guides to group behaviors. Once members agree on performance norms they routinely perform tasks according to those norms. For example, members of problem-solving groups often decide early in the life of the group that decisions will be made through consensus. Consensus then becomes a routine part of group task behavior.
Interpersonal relations are the underlying basis of group life. How members relate to each other is important in work groups because the quality of rela­tionships can affect task performance. In some groups, for example, interper­sonal competition and conflict among members lead to no support and help for each other. Therefore, efforts are required to help work groups develop healthy interpersonal relations.
Fits
The diagnostic model shows that group design components must fit inputs if groups are to be effective in terms of such things as high­ quality decisions, teamwork, and cohesiveness. The follow­ing fits must take place between the inputs and design dimensions:
Group design should match with the larger organization design. Organic organizations should have work groups that are organic and promote flexible and innovative behaviors. Mechanistic organizations should promote groups that are highly formalized and support standardized behaviors. When group designs are not compatible with organization designs, groups often conflict with the organization. They may develop norms that are against organizational effectiveness leading to counterproduc­tive behaviors.
When the technology component of organization design results in interde­pendent tasks, group task structure, composition, performance norms, and interpersonal rela­tions should promote coordination among members. When technology permits independent tasks, the design components should promote individual task performance.
When technology is relatively uncertain and requires high amounts of information processing and decision making, group task structure, compo­sition, performance norms, and interpersonal relations should promote self-regulation. Members should have the necessary freedom, information, and skills to assign members to tasks, to decide on production methods, and to set performance goals. When technology is relatively certain, group designs should promote standardization of behavior, and supervisors, schedules, and plans should externally control groups.
Individual-Level Diagnosis
The lowest level of organizational diagnosis is the individual job or position. This section discusses the inputs, design components, and relational fits for diagnosing jobs. Figure 1 shows inputs, job characteristics, and output.
Inputs
Three major inputs affect job design: (1) organization design, (2) group design,
and (3) the personal characteristics of jobholders.
Organizational design is concerned with the larger organization within which the individual job is the smallest unit. Larger organization environment has direct impact on the individual job. For example, company training and development policy can orient employees to particular job behaviors.
Group design concerns the larger group or department containing the indi­vidual job. Group task structure, composition, performance norms, and in­terpersonal relations serve as inputs to job design. They typically have a more immediate impact on jobs than the larger, organization-design components. For example, group composition can influence the kinds of people that are available to fill jobs. Group performance norms can affect the kinds of job performance that are considered acceptable. Interpersonal relations can affect how pow­erfully the group influences job behaviors.
Personal characteristics of individuals occupying jobs include their age, edu­cation, experience, and skills and abilities. All these can affect job perfor­mance as well as how people react to job designs. Individual needs and ex­pectations can also affect employee job responses. For example, individual differences in growth need can determine how much people are motivated.
Design Components
Figure 1 shows that individual jobs have five key dimensions: (1) skill variety, (2) task identity, (3) task significance, (4) autonomy, and (5) feedback about results.
Skill variety identifies the degree to which a job requires a range of activities and abilities to perform the work. For example, assembly-line jobs generally require limited skill variety while managerial jobs require different skills in performing work.
Task identity measures the degree to which a job requires the completion of a relatively whole, identifiable piece of work. For example, project manager is able to see a job through from beginning to end. Contrary to this, assembly-line jobs involve only a limited work and score low on task identity, therefore, assembly line workers are unable to identify with the complete job.
Task significance identifies the degree to which a job has a significant impact 'on other people's lives.
Autonomy indicates the degree to which a job provides freedom in scheduling the work and determining work methods. Assembly-line jobs generally have little autonomy.
Feedback about results involves the degree to which a job provides employees with direct and clear information about the effectiveness of task performance
The five job dimensions can be combined into an overall measure of job enrichment. Enriched jobs have high levels of skill variety, task identity, task significance, autonomy, and feedback about results. They provide opportuni­ties for self-direction, learning, and personal accomplishment at work. Many people find enriched jobs internally motivating and satisfying.
Fits
The diagnostic model suggests that job design must fit job inputs to produce effective job outputs, such as high quality and quantity of individual performance, low absenteeism, and high job satisfaction. The following fits must take place between job inputs and job design:
Job design should be congruent with the larger organization and group designs. Organic organizations and groups, where members are self-regulating, have a better fit with enriched jobs. These larger organizations and groups promote autonomy, flexibility, and innovation at the individual job level. Conversely, mechanistic orga­nizations and groups relying on external controls are congruent with job designs scoring low on the five key dimensions. As suggested earlier, congru­ence across different levels of organizational design promotes integration of the organization, group, and job levels. Whenever the levels do not fit each other, conflict is likely to emerge.
Job design should fit the personal characteristics of the job holders. Individuals are then expected to perform effectively and derive satisfaction from work. Generally, enriched jobs match well with people who have strong growth needs. These people derive satisfaction and achievement from performing jobs involving skill vari­ety, autonomy, and feedback about results. Enriched jobs also fit people having moderate to high levels of task-relevant skills, abilities, and knowledge. Enriched jobs generally require complex information process­ing and decision making; people must have specialized skills and abilities to perform effectively. Jobs scoring low on the five job dimensions generally fit people with elementary skills and abilities and with low growth needs. Simpler, more routine jobs require limited skills and experience; they fit better with people who place a low value on opportunities for self-direction and learning.
Block II-Unit 2. Diagnostic Methodology: Salient Features
Objectives: After going through this unit you should be able to:
appreciate the need for diagnostic methodology
understand the concept of open systems model
understand the framework to diagnose organizations
Structure
2.1 Introduction
2.2 Diagnosing the system, subunits and processes
2.3 The need for diagnostic methodology
2.4 The open systems model
2.5 Case Analysis
2.6 Summary
2.7 Self assessment / test questions
2.8 Suggested readings

2.1 Introduction
Diagnosing the system is at the heart of an action program. It is based on valid information about the current problems and opportunities. Diagnostic activities are designed to provide an accurate account of things as they really all. An understanding of these activities, as discussed in this unit is needed for two reasons. The first reason is to know the state of things as they are i.e. ‘what is’. The second purpose is to assess the effects or consequences of actions as and when they are initiated after the diagnosis.
Diagnosis is crucial for OD and change effort. It, therefore, requires methodology. Both, the client and the practitioner, have to be very careful regarding ‘what to look at’ and ‘how it is to be done’. It is therefore critical how one would proceed to diagnose the total organization and its subsystems. A critical and well laid out methodology helps the practitioners to start the diagnostic process in the right earnest.
2.2 Diagnosing the system, subunits and processes
Bringing improvement in an organization requires the examination of the present state of things. This kind of analysis focuses on two aspect. First is the diagnosis of subsystems, which taken together make up the entire organization. These subsystems are in the form of departments, functional areas, hierarchies, or teams. The second area for attention is the processes being carried out in the organization. Some of these processes are decision-making process, communication patterns, goal setting process, interpersonal relationship & roles, planning process, and management of conflict.
Therefore, the subsystems and the process becomes the focus of diagnostic activities. Each of the major aspect of the organization provides sufficient relevant information if probed carefully. The OD practitioner may be interested in all these target groups or some of them, as and when the need arises. For example, the initial diagnosis starts with the total organization and than moves on to different departments.
We consider that the information desired at organizational level is as follows:
What are the existing norms of the organization?
What is the prevailing organization culture?
What is the organization’s climate; Open vs. close, authoritarian vs. democratic?
Are organization goals and strategies understood and accepted by members?
What is organization’s performance?
What are the attitudes and feelings toward such things as compensation, supervision, top management etc.?
By carefully examining the organization or its subunits the necessary data is generated. In the approach we focus on the primary target groups to carry out the diagnosis of the organization.
An alternative way to diagnosis is to emphasise the organization’s principal process rather than its primary target groups. Each process provides sufficient information regarding the problem. Organization processes are the ‘what’ and how’ of the organization. That is what is going on? And how is it being achieved? Organization processes reflect organization in its dynamic and complex reality. We consider that the information desired at one of the processes, namely, managing interface relations is as follows:
What is the nature of relations between two groups?
Are goals and responsibilities clear?
What major problems does the group face?
Where does conflict exist?
What are the system norms for dealing with conflict?
What structural conditions promote/ inhibit effective interface management?
Likewise other process such as goal setting, decision-making, communication etc. also provide relevant information which throws light on the functioning of the organisation.
In practice the OD consultant works on both the areas that is target groups and processes.
2.3 The Need for Diagnostic Methodology
To diagnose an organization, organization members and OD practitioner need to have an idea about what information to collect and analyze. Choices about what to look for depend on how they perceive the organization. They look for the information in a systematic manner using the methodology, which is based on conceptual framework. Conceptual framework that people use to understand organizations are referred to as ‘diagnostic models’. The diagnostic methodology is based on the diagnostic models. They describe the relationship between different features of the organization, its context, and effectiveness.
This section presents a general framework for diagnosing organization rather than attempting to cover the diversity of OD diagnostic models. The framework draws upon the systems perspective. The methodology provides a useful starting point for diagnosing organization or departments.
2.4 The Open Systems Model
The open system model is a general system model for diagnosing organizations. The model represents an open system view of organizations that may be applied to diagnosis at three levels of analysis: the total organization, the work group, and the individual job or position.
Systems theory is a set of concepts and relationship describing the properties and behaviors of thing called ‘System’ – organizations, groups and people. Systems are viewed as unitary whole composed of parts or subsystem and serve to integrate the parts into a functioning unit.
Systems can vary in how open they are to their outside environment. ‘Open system’ exchange information and resources with their environment freely. They cannot completely control their own behavior and are influenced by external forces. For example many environmental conditions such as the availability of raw materials, customer demands, government regulation, new technology etc. affect the organizations. Systems are composed of inputs, transformations, and outputs; have boundaries and a feedback mechanism. Open systems display hierarchical order. Each higher level of system is composed of lower-level systems.
Diagnosing organization Systems
Organizations can be diagnosed at three levels, namely, organization level, group level, and individual level. Diagnosis can occur at all three levels, or it may be limited to problems occurring at a particular level. The key to effective diagnosis is to know what to look for at each level. It is also necessary to know how the levels affect each other. A particular relationship exists between two levels. For example, if you are diagnosing a work group, it is necessary to know what characteristics of group are important for its effectiveness and how the larger organization affects the group.
Figure 1 presents a model for diagnosing different organizational systems. It includes dimensions needed to understand organizational systems at three levels: organizational, group, and individual job. For each level, it shows:
(4) the inputs that the system has to work with,
(5) the key design components of the transformation subsystem, and
(6) The system’s outputs
Input’s transformation subsystem and output are interdependent system. Outputs would be effective when the design components fit and mutually supports the inputs. In figure 1 the fit is shown by double headed arrow; connecting inputs to design components and the mutual support is shown by linkages among the design components. Figure 1 shows how each organization level affects the lower levels. The external environment is an input to organization design; organization design is an input to group design, which serves as an input to individual design.
Organization Level Diagnosis
The diagnosis done at the organizational level is the systems perspective. The key areas to be diagnosed at this level are discussed below:
Inputs
To under stand the functioning of the organization we must look at inputs and design components and must examine the fit between the two. Strategy and external environment are the inputs which affect the organization design.

Figure 1 --Model for Diagnosing Organizations
Organizational Level
Design Components

Technology


Structure Culture Measurement
Systems


Human Resource Systems
Outputs
Inputs
Strategy
Environment

Organization Effectiveness








Design Components Group Level
Inputs
Organization Design
Task Structure


Performance Culture Measurement
Norms Systems


Interpersonal Relations



Group Effectiveness









Design Components Individual Level

Inputs
Organization Design

Group Design

Personal Characteristics
Technology


Structure Culture Measurement
Systems


Human Resource Systems


Individual Effectiveness







Source: T.G. Cumings and C.G. Worley, “ Organizational Development and Change”, 5th ed., St. Paul:West 1993.
Strategy is formulated to gain and sustain the competitive advantage in the large environment. Strategic choice often takes place along three dimensions. The products or services to be offered, the markets to be served, and values to guide the organization. External environment includes elements and forces that can affect the attainment of strategic objectives. The environment moves along a static-dynamic continuum and provides context within which organizations operate. Static environment is predictable while dynamic environment changes rapidly and is unpredictable. Organizations must be more responsive when operating in the dynamic environment.
Design components
Organizations have five major design components (1) technology (2) Structure (3) Measurement Systems (4) Human Resource System and (5) Culture
How organization convert raw material into product does depend on its technology. It is the core of the organizational design and includes production methods, work flow and equipment. Two dimensions of technological core influence other design component; technical interdependence and technical uncertainty.
Technical interdependence involves ways in which the different parts of a technological system arc related. High interdependence requires considerable coordination among task. For example, to bring out a new product the project development team must work together. Technical uncertainty refers to the amount of informa­tion processing and decision making required during task performance. Gen­erally, when tasks require high amounts of information processing and decision making, they are difficult to plan and routinize. The development of new software requires high level of coordination among the team members.
Structure includes the ways an organization divides labor or differentiates its parts-horizontally into departments and groups and vertically into managerial hierarchies. Horizontally, organizations may be divided by function, by product or service, or by some combination of both. Vertically, organizations may be tall and include many managerial levels or they may be relatively flat. Structure is also con­cerned with integration-joining and coordinating departments for overall task achievement. It involves specifying rules, procedures, goals, and plans for directing organizational behaviors. Measurement systems are methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations. Such data tell how well the organization is performing and are used to detect and control deviations from goals. For example, management control systems help to ensure that each department's activities are in line with overall company objectives.
Human Resource Systems include mechanisms for selecting, training, and de­veloping employees. These influence the mix of skills and personalities of organization members. Human resource systems also include the rewards used by organizations to encourage people to join and remain with the organization and to work toward specific objectives. Reward systems may be tied to performance measurement systems so that rewards are allocated on the basis of prespecified results.
Culture is concerned with the basic assumptions, values, and norms shared by organizational members. These cultural elements are generally taken for granted and serve to guide members' perceptions, thoughts, and actions. For example McDonald's culture emphasizes "efficiency," "speed," and "consis­tency." It orients employees to company goals and suggests the kinds of be­haviors necessary for success.
Fits
The diagnostic model in Figure 1 shows that the design components must have a fit with the input components if organization outputs (market share or net profits, for example) are to be effective. The following fits must take place between the inputs and design dimensions:
When strategic choice results in an environment that is highly dynamic (changing and uncertain), organization design should be organic. This means an adaptable set of technologies, structures, measurement systems, human resource systems, and culture. These components should support flexible and innovative organizational behaviors.
2. When strategy results in a static environment, organization design should be more mechanistic. The design components should be formalized and should support standardized organizational behaviors.
Group Level Diagnosis
After the organization level, the next level of diagnosis is the group. Many large organizations have groups or departments that are themselves huge. Diagnosis of large groups can follow the dimensions and relational fits applicable to organization-level diagnosis.
Often small departments and groups behave differently than large organizations. Therefore, there is a need for separate diagnostic models to reflect these differences. In this section, we discuss the approach of diagnosing small work groups. Such groups generally consist of a relatively small number of people working face-to-face on a shared task. They can be relatively permanent and perform an ongoing task, or they can be temporary and exist only to perform a certain task or to make a specific decision. Figure 1 shows the inputs, design components, out­puts, and relational fits for group-level diagnosis.
Inputs
Organization design is the major input to group design. It consists of the design components of the larger organization within which the group works. These include technology, structure, measurement system, human resource systems, and culture. The environment of work groups is affected by organizational design. It determines the technological characteristics of the group's task and influences the group behaviors. As discussed earlier, organization design can vary along an organic­/ mechanistic dimension. Organic designs support flexible and innovative behaviors; mechanistic designs are highly formalized and promote standardized behaviors.
Design Components
Figure 1 shows that groups have four major components: (1) task struc­ture, (2) composition, (3) performance norms, and (4) interpersonal relations.
Task structure is concerned with how the group's task is designed. Task structures can vary along two key dimensional -coordination of members' efforts and regulation of their task behaviors. The coordination dimension involves the degree to which group tasks are structured to promote effective interaction among group members. Coordination is important in groups per­forming interdependent tasks, such as project teams and problem solving groups. It is relatively unimportant in groups composed of members performing independent tasks, such as salespersons.­
The regulation dimension involves the degree to which members can control their own task behaviors and be relatively free from external controls. Self-regulation generally occurs when members can decide on such issues as work schedule, work methods, production goals, and membership.
Composition concerns the membership of groups. Members can differ on a number of dimensions which are relevant to group behavior. Demographic vari­ables, such as age, education, experience, and skills and abilities, can affect how people behave and relate to each other in groups. Demographics can determine whether the group is composed of people having task-relevant skills and knowledge, including interpersonal skills. People's internal needs can also influence group behaviors. Individual differences in social needs can deter­mine whether group membership is likely to be satisfying or stressful. Performance norms are member beliefs about how the group should perform its task and include acceptable levels of performance. Norms serve as guides to group behaviors. Once members agree on performance norms they routinely perform tasks according to those norms. For example, members of problem-solving groups often decide early in the life of the group that decisions will be made through consensus. Consensus then becomes a routine part of group task behavior.
Interpersonal relations are the underlying basis of group life. How members relate to each other is important in work groups because the quality of rela­tionships can affect task performance. In some groups, for example, interper­sonal competition and conflict among members lead to no support and help for each other. Therefore, efforts are required to help work groups develop healthy interpersonal relations.
Fits
The diagnostic model shows that group design components must fit inputs if groups are to be effective in terms of such things as high­ quality decisions, teamwork, and cohesiveness. The follow­ing fits must take place between the inputs and design dimensions:
Group design should match with the larger organization design. Organic organizations should have work groups that are organic and promote flexible and innovative behaviors. Mechanistic organizations should promote groups that are highly formalized and support standardized behaviors. When group designs are not compatible with organization designs, groups often conflict with the organization. They may develop norms that are against organizational effectiveness leading to counterproduc­tive behaviors.
When the technology component of organization design results in interde­pendent tasks, group task structure, composition, performance norms, and interpersonal rela­tions should promote coordination among members. When technology permits independent tasks, the design components should promote individual task performance.
When technology is relatively uncertain and requires high amounts of information processing and decision making, group task structure, compo­sition, performance norms, and interpersonal relations should promote self-regulation. Members should have the necessary freedom, information, and skills to assign members to tasks, to decide on production methods, and to set performance goals. When technology is relatively certain, group designs should promote standardization of behavior, and supervisors, schedules, and plans should externally control groups.
Individual-Level Diagnosis
The lowest level of organizational diagnosis is the individual job or position. This section discusses the inputs, design components, and relational fits for diagnosing jobs. Figure 1 shows inputs, job characteristics, and output.
Inputs
Three major inputs affect job design: (1) organization design, (2) group design,
and (3) the personal characteristics of jobholders.
Organizational design is concerned with the larger organization within which the individual job is the smallest unit. Larger organization environment has direct impact on the individual job. For example, company training and development policy can orient employees to particular job behaviors.
Group design concerns the larger group or department containing the indi­vidual job. Group task structure, composition, performance norms, and in­terpersonal relations serve as inputs to job design. They typically have a more immediate impact on jobs than the larger, organization-design components. For example, group composition can influence the kinds of people that are available to fill jobs. Group performance norms can affect the kinds of job performance that are considered acceptable. Interpersonal relations can affect how pow­erfully the group influences job behaviors.
Personal characteristics of individuals occupying jobs include their age, edu­cation, experience, and skills and abilities. All these can affect job perfor­mance as well as how people react to job designs. Individual needs and ex­pectations can also affect employee job responses. For example, individual differences in growth need can determine how much people are motivated.
Design Components
Figure 1 shows that individual jobs have five key dimensions: (1) skill variety, (2) task identity, (3) task significance, (4) autonomy, and (5) feedback about results.
Skill variety identifies the degree to which a job requires a range of activities and abilities to perform the work. For example, assembly-line jobs generally require limited skill variety while managerial jobs require different skills in performing work.
Task identity measures the degree to which a job requires the completion of a relatively whole, identifiable piece of work. For example, project manager is able to see a job through from beginning to end. Contrary to this, assembly-line jobs involve only a limited work and score low on task identity, therefore, assembly line workers are unable to identify with the complete job.
Task significance identifies the degree to which a job has a significant impact 'on other people's lives.
Autonomy indicates the degree to which a job provides freedom in scheduling the work and determining work methods. Assembly-line jobs generally have little autonomy.
Feedback about results involves the degree to which a job provides employees with direct and clear information about the effectiveness of task performance
The five job dimensions can be combined into an overall measure of job enrichment. Enriched jobs have high levels of skill variety, task identity, task significance, autonomy, and feedback about results. They provide opportuni­ties for self-direction, learning, and personal accomplishment at work. Many people find enriched jobs internally motivating and satisfying.
Fits
The diagnostic model suggests that job design must fit job inputs to produce effective job outputs, such as high quality and quantity of individual performance, low absenteeism, and high job satisfaction. The following fits must take place between job inputs and job design:
Job design should be congruent with the larger organization and group designs. Organic organizations and groups, where members are self-regulating, have a better fit with enriched jobs. These larger organizations and groups promote autonomy, flexibility, and innovation at the individual job level. Conversely, mechanistic orga­nizations and groups relying on external controls are congruent with job designs scoring low on the five key dimensions. As suggested earlier, congru­ence across different levels of organizational design promotes integration of the organization, group, and job levels. Whenever the levels do not fit each other, conflict is likely to emerge.
Job design should fit the personal characteristics of the job holders. Individuals are then expected to perform effectively and derive satisfaction from work. Generally, enriched jobs match well with people who have strong growth needs. These people derive satisfaction and achievement from performing jobs involving skill vari­ety, autonomy, and feedback about results. Enriched jobs also fit people having moderate to high levels of task-relevant skills, abilities, and knowledge. Enriched jobs generally require complex information process­ing and decision making; people must have specialized skills and abilities to perform effectively. Jobs scoring low on the five job dimensions generally fit people with elementary skills and abilities and with low growth needs. Simpler, more routine jobs require limited skills and experience; they fit better with people who place a low value on opportunities for self-direction and learning.