Organizational Diagnostic Models: PetMed Express - Essay Example

Organizational Diagnostic Models The Value of Organizational Diagnosis Organizational Diagnosis is one of the strategies used for Organizational Development. It involves an assessment or evaluation of an organizations current level of functioning in order to design appropriate change interventions (Falletta, 2005). The purpose is to collect and evaluate important information about the organization in order to draw up plans for changes and developments. The strategy is essential to identify the responsiveness and adaptability of an organization to the different factors affecting it (McShane, 2001). In a highly competitive global market, evaluating the factors that contribute to the success of an organization is vital for its sustainability and growth. (Porter, 1985) Organizational Diagnostic Models The Force Field Analysis model defines two opposing forces acting on an organization. The driving forces push for change while the restraining forces act as a barrier for change (Falletta, 2005). To achieve the desired change, it needs to unfreeze the current state of equilibrium in an organization by adding driving forces or by eliminating restraints. Once achieved, the organization must refreeze or reestablish equilibrium. The strength of the model is its simplicity. The weakness is the assumptions that disequilibrium is expected to occur; changes occur simultaneously; and equilibrium will be reestablished. Leavitt's Model depicts a diamond shaped model showing interdependence among four variables: structure, technology, task and people. The model illustrates an assumption that changes in one variable affect the other variables. It is similar to opposing forces of the Force Field Analysis. However, the focus is within the internal environment of the organization and excludes the effect of the external environment. (Falletta, 2005) Likert System Analysis addresses seven organizational variables such as motivation, communication, interaction, decision-making, goal setting, control and performance (Falletta, 2005). Based on the variables, Likert identified four types of management systems: (1) Exploitative-Authoritative; (2) Benevolent:Authoritative; (3) Consultative; and (4) Participative Group. The strength of the analysis lies on the appraisal of employee's perception through the survey of different levels - management, supervisors and staff. The weakness of the analysis rests on the exclusion of external environment forces that would affect the organization. The measurement also assumes independence on each level. (Falletta, 2005) The Open Systems Theory conceptualizes an organization as a social system which is dependent on the environment they work in. The theory illustrates a repeated cycle of inputs, throughputs, outputs and renewed input with a feedback loop that connects the output and renewed inputs (Falletta, 2005). Weisbord's Six-Box Model follows the open systems theory. The model illustrates six variables in an organization such as purposes, structure, relationships, leadership, rewards and helpful mechanisms. The model also identifies two management systems - formal and informal systems, which are crucial to the effectiveness of an organization. The strength of the model lies on the assumption that the external environment has great influence through the organizational inputs and outputs. The model also takes into consideration the suitability of an organization to its environment. However, the model does not make any direct causal statement regarding the interconnections between variables. (Falletta, 2005) The Nadler-Tushman Congruence Model also follows the open systems theory that assumes an organization as a dynamic, open social system within a larger environment where behavior occurs at the levels of an individual, a group and the whole system. As with Weisbord's model, it takes into account the formal and informal systems. The strength of the model lies on the consideration of the interaction and congruence between the individuals, group and system. The external environment takes the role as the provider of feedback to inputs and outputs. (Falletta, 2005) McKinsey's 7S Framework identifies style, staff, systems, strategy, structure, skills & shared value as important organizational dimensions (Falletta, 2005). The strength in the model is the direct causal interaction and interdependency between the seven variables. It assumes that an organization wide development will only happen when all the variables are congruent as a system. The weakness of the model is the exclusion of the external environment. Tichy's Technical Political Cultural (TPC) Framework also follows the opens systems theory. The aim of the model is organizational effectiveness as an output. As with other opens systems, the input, throughput and output variables are dependent with each other. The strength of the model lies on the assumption that some relationships between variables are strong and some are weak. The limitation of the model lies on the focus of technical, political and cultural perspective of an organization. (Falletta, 2005) High Performance Programming framework evaluates the performance of an organization in order to transform it into a high performing system. The strength of the model lies in the evaluation that considers eleven. It follows a Likert-type scale that independently measures the levels of variables in the organization. Also, the model identifies different levels of organizational performance: (1) reactive; (2) responsive; (3) proactive; and (4) high performing. The weakness lies on the exclusion of the effect of the external environment. (Falletta, 2005) Harrison's Model for Diagnosing Individual and Group Behavior also pursues open system theory but focuses on individual performance, organizational performance, quality of work life as an output. The strength of the model lies in the key factors identified that affect performance and quality of work life in the individual and group level. The external environment has a great role in the performance of the organization. The model is unique in its sense because of the lines of influence or feedback connecting variables. However, its weakness lies on the one direction and lack of reciprocity. (Falletta, 2005) The Burke-Litwin Causal Model of Organizational Performance and Change is a new model for open systems theory. It considers twelve variables that affect the whole organization. The strength lies on the inclusion of the external environment as an input variable and the addition of organizational climate and culture as dimensions (Falletta, 2005). The feedback loop covers all the variables thus allowing reciprocity. The weakness is in its complexity. PetMed Express, Inc. PetMed Express is the leading pet pharmacy in the US. In fiscal 2009, it has generated $219.4 million in revenues and earned $23 million in net income. The company showed solid performance and profitability for the last five years. However, despite its growth and performance, the company is faced with issues and risks, internally and externally. (Annual Report, 2009) In diagnosing the performance of the company, it would be appropriate to use Burke-Litwin Model when considering the impact of the external environment such as state regulations, veterinarian-customers and availability of supply on the organization. In diagnosing the internal efficiency and effectiveness of the company, it would be appropriate to utilize McKinsey's 7S Framework when considering the problems and issues inside the organization. The High Performance Programming framework would also be appropriate in improving the organizational performance and sustaining its growth as a high performing system. Bibliography Falletta, S. (2005). Organizational Diagnostic Models: A Review & Synthesis. Retrieved October 18, 2009, from Leadersphere: http://www.leadersphere.com/img/Orgmodels.pdf McShane, S. (2001). Organizational Behavior. New Jersey: McGraw-Hill. PetMed Express Inc. (2009). Annual Report. Pompano Beach, Florida. Porter, M. (1985). Competitive Advantage. New York: The Free Press. Read More