Organizational Diagnostic Models

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1 Organizational Diagnostic Models Ing. Josef Kašík, Ph.D. Department of Business Administration Faculty of Economics VŠB Technical University of Ostrava 2011

2 Importance of Organizational Models often identify vital organizational variables and depict the nature of the relationships between these key variables help us to understand more clearly and quickly what happens in organizations and thus aids the diagnostic process help us to interpret data about an organization

3 Selected diagnostic models 1. Force Field Analysis (1951) 2. Leavitt s Model (1965) 3. Likert System Analysis (1967) 4. Open Systems Theory (1966) 5. Weisbord s Six-Box Model (1976) 6. Congruence Model (1977) 7. McKinsey 7S Framework ( ) 8. Tichy s TPC Framework (1983) 9. High-Performance Programming (1984) 10. Diagnosing Individual and Group Behavior (1987) 11. The Burke-Litwin Model (1992)

4 Force Field Analysis (FFA, 1951) Author: Kurt Lewin Driving Forces Current State of Affairs (Problem) Restraining Forces Desired State of Affairs (Goal) Equilibrium Interrupted Disequilibrium During Change Equilibrium Reestablished

5 Force Field Analysis - Example Restraining Forces trade unions Desired State: 24 hour service Driving Forces: middle management shop floor supervisors rank & file employees Change Process Current State: 16 hour service top management customers consultants airlines

6 Leavitt s Model (1965) Structure Tasks Technology People

7 Likert System Analysis (1967) is focused on 7 organizational dimensions: 1) motivation 2) communication 3) interaction 4) decision making 5) goal setting 6) control 7) performance

8 Likert System Analysis (1967) Likert developed a 43-item questionnaire related to the seven organizational dimensions example extent to which supervisors willingly share information with subordinates Provides minimum information Gives subordinates only information superior feels they need Gives information needed and answers most questions Seeks to give all relevant information and all information they want

9 Likert System Analysis (1967) System 4 four different types of management systems: 1) Exploitative-Authoritative (autocratic manager, communication based on one-way orders, discipline), 2) Benevolent-Authoritative (authoritative style prevails, selective communication with subordinates, partially tolerates their views and opinion), 3) Consultative (cooperation between supervisors and subordinates, trust with limits created by supervisors, important decisions are made by supervisors), 4) Participative(great extent of faith and autonomy of subordinates for their decision-making, informal mutual communication).

10 Likert System Analysis (1967) System 1 System 2 System 3 System 4 Motivation X Communication X Interaction X Decision-making X Setting goals X Control X Performance X

11 Open Systems Theory (1966) Environment Inputs Transformation Outputs

12 Weisbord s Six-Box Model (1976) Purposes Relationships Leadership Structure Helpful Mechanisms Rewards Input External Environment Output

13 The Nadler-Tushman Congruence Model (1977) Assumptions of the model: 1. Organizations are open social systems within a larger environment. 2. Organizations are dynamic entities. 3. Organizational behaviour occurs at the individual, the group and the system level. 4. Interactions occur between the individual, group and system level of organizational behaviour.

14 The Nadler-Tushman Congruence Model (1977) Transformation Process Inputs Environment Resources History strategy Task Informal Organization Formal Organization Outputs Organization Group Individual Individual feedback

15 The Nadler-Tushman Congruence Model Inputs Environment all factors, incl. institutions, groups, individuals, events etc., that are outside the organization, but that have a potential impact on that organization Resources assets to which the organization has access incl. human resources, capital, information etc., as well as less tangible resources (recognition in the market etc.) History patterns of past behaviour, activity and effectiveness that may affect current organizational functioning Strategy stream of decisions about how organizational resources will be configured to meet demands, constraints and opportunities

16 Definitions of Congruence in the Congruence Model Pair Individual-Formal Organization Individual-Task Individual-Informal Organization Task-Formal Organization Task-Informal Organization Formal Organization- Informal Organization Issues How are individual needs met by the organizational arrangements? Do individuals have clear perception of organizational structure? Is there a convergence of individual and organizational goals? Do individuals have skills and abilities to meet task demands? How are individual needs met by the tasks? How are individual needs met by the informal organization? How does the informal organization make use of individual resources? Are organizational arrangements adequate to meet the demands of the task? Do organizational arrangements motivate behaviour that is consistent with demands? Does the informal organization structure facilitate task performance or not? Does it hinder or help meet the demands of the task? Are the goals, rewards and structures of the informal organization consistent with those of the formal organization?

17 McKinsey 7S Framework ( ) "Managerial Molecule" Style (styl vedení) Soft Ss Skills (dovednosti) Structure (struktura) Shared Values (sdílené hodnoty) Staff (zaměstnanci) Systems (systém řízení) Strategy (strategie) Hard Ss

18 Tichy s Technical Political Cultural (TPC) Framework (1983) Input Environment history Resources Mission strategy Legend: Strong Impact Weak Impact Tasks Prescribed Networks People Organizational processes Emergent Networks Performance Impact on people Output

19 Tichy s Technical Political Cultural (TPC) Framework (1983) Technical subsystem available resources, production processes; rational, based on empiricism and scientific methods Political subsystem dominant and powerful organizational groups Cultural subsystem shared symbols, values etc. which form the organizational culture 3 subsystems (strands): Technical Political Cultural Rope Metaphor:

20 Tichy s Technical Political Cultural (TPC) Framework (1983) The TPC framework raises 4 questions which are vital to organizational diagnosis: 1. How well are the parts of the org. aligned with each other for solving the organization's technical problems? 2. How well are the parts of the org. aligned with each other for solving the organization's political problems? 3. How well are the parts of the org. aligned with each other for solving the organization's cultural problems? 4. How well aligned are the 3 subsystems of the org., the technical, political and cultural?

21 Tichy s Technical Political Cultural (TPC) Framework (1983) TPC Matrix Core System ms Mission/ Strategy Organizational Components Tasks Prescribed networks People Processes Emergent networks Technical Political Cultural amount of withinsystem alignment amount of required org. component change no change 1 moderate change 2 great deal of change Score = 20 Min.0 Max. 36

22 High-Performance Programming Nelson and Burns (1984) The High Performing Organization Level 4 The Proactive Organization Level 3 The Responsive Organization Level 2 The Reactive Organization Level 1 Empowering leadership, focus on excellence "Purposing" leadership, focus on the future, purpose, planning and development startegies Coaching leadership, some clarity of purpose and goals, capability to adapt to changing environment Enforcing leadership, poor outcomes, often unclarity of purpose and goals

23 High-Performance Programming 11 dimensions or variables 1. time frame 2. focus 3. planning 4. change mode 5. management 6. structure 7. perspective 8. motivation 9. development 10. communication 11. leadership Likert-type scale 5 Strongly Agree 4 Agree 3 Neither Agree Nor Disagree 2 Disagree 1 Strongly Disagree

24 Diagnosing Individual and Group Behaviour Harrison (1987) Org. Level Resources ENVIRONMENT Purpose, Processes, Structure, Technology, Behaviour, Culture Outputs Group Level Resources Group Composition, Structure, Technology Group Behaviour, Processes, Culture Group Performance Individual Level Resources Individual Characteristics Ind. Attitudes, Beliefs, Motivation Individual Performance QWL (quality of work life) Main lines of influence Feedback loops

25 Diagnosing Individual and Group Behaviour Harrison (1987) Individual Characteristics Individual Attitudes, Beliefs, Motivation Group Composition, Structure, Technology Group Behaviour, Processes, Culture Key Factors Affecting Performance and QWL Individual Level Group Level Physical and mental state, social background and traits, training and education, individual needs Expectations, satisfaction with current procedures, trust, equity, experienced rewards Social and occupational composition, structure (rules and work procedures, flexibility, clarity of task assignments, responsibilities), technology (impact of work procedures and physical arrangements) Relationships among group members (cohesion, feelings of attachment to group, similarity of views), processes (communication, cooperation and conflict, decision making, problem solving), supervisors' behaviour, culture

26 The Burke-Litwin Model (1992) External Environment F E E D B A C K Mission and Strategy Structure Leadership Management Practices Work Group Climate Culture Systems (policies & proced. ) F E E D B A C K Skills/Job Match Motivation Individual Needs and Values Performance

27 Transformational Factors in the B-L Model External Environment Mission and Strategy Leadership Culture Performance Transformational dynamics is associated more with leadership, represent fundamental changes and is more related to organizational culture.

28 Transactional Factors in the B-L Model Structure Management Practices Systems (policies & procedures) Work Group Climate Skills/Job Match Motivation Individual Needs and Values Performance Transactional dynamics is associated more with management, represent everyday interactions and exchanges and is more related to organizational climate.

29 Empirical Studies Related to the B-L Model Variable Relationship Author(s) External Environment Leadership Culture Management Practices => Culture => Mission & Strategy => Management Practices Gordon, 1985 Prescott, 1986 Fleishman, 1953 => Performance Weiner & Mahoney, 1981 <==> System (policies) => Performance Kerr & Slocum, 1987 Denison, 1990 => Climate Schneider, 1980 Schneider & Bowen, 1985 Structure => Climate Schneider & Snyder, 1975 Systems => Individual Needs & Values Joyce & Slocum, 1984 Jordan, 1986

30 Empirical Studies Related to the B-L Model Variable Relationship Author(s) Climate => Motivation Performance Rosenberg & Rosenstein, 1980 Skills/Job Match => Motivation Performance Hunter & Schmidt, 1982 Individual => Motivation Performance Guzzo, Jette & Katzell, 1985 Needs & Values

31 Literatura 1. WEISBORD, M. R. Organizational Diagnosis. Perseus Books, HOWARD, A. Diagnosis for Organizational Change: Methods and Models. The Guilford Press, Organizational Diagnostic Models: A Review & Synthesis. Dostupný online na