Industrial Services of America Inc Organizational Diagnostic - Essay Example

? INDUSTRIAL SERVICES OF AMERICA INC. ORGANIZATIONAL DIAGNSOITC Organizational development diagnosis (OD) is vital in assessing an organization’s level of performance in order to appropriately design the necessary interventions for change. There are several OD strategies for improving the effectiveness of an organization (Falletta, 2008). The diagnostician views the whole system of an organization. The organization is looked at as system with input, throughputs, and outputs connected by feedback loops. Competitive organizations face challenges that present the need for responding with solutions to solve the present and future challenges (Hill & Jones, 2009). Organization diagnosis provides the best opportunity for identifying those challenges and coming up with the appropriate solutions. Diagnosis is carried out using an organizational model. An organizational model is a straightforward simulation of a firm (organization) which helps to understand the firm more clearly. This is beneficial in enhancing the understanding of organizational behavior, categorizing data in an organization, interpreting data in an organization and providing a common, and shorthand language (Hill & Jones, 2009). One of the OD models is the force field analysis developed by Kurt Lewin in 1952. A simulation of the model helps to determine the driving forces, as well as the restraining forces within an organization. The strength of this model is that it is simple to interpret and understand. It also shows the interconnection of an organization forces with its environment. The model is suitable for analyzing small organizations. Restraining forces, such as low employee motivation, are barriers to change within an organization. On the contrary, driving forces are considered those factors that push for change within an organization. Understanding of driving and restraining forces within an organization provides a means of setting goals and strategies that could tilt the organizational equilibrium in the required direction. However, this model relies on the change process to take place within the social implications built into the models. It also makes an assumption that in order to achieve the desired state of equilibrium; driving forces will keep on being added while restraining forces will be simultaneously removed in a dynamic organization (Falletta, 2008). Levitt developed Leavitt’s model in 1965. The model is simpler compared to field analysis forces. The model uses the concept of specific variables rather than driving forces. The variables include; structure, technological and human variables. The variables are interconnected; such that, change in one of the variables induces a change in the rest of the variables. The good thing with the model is that, the ultimate goal is to affect the task variable (positive production of goods and services). The model, therefore, is suitable for organizations with issues in their products and service. The major drawback in this mode is that it allows for making of casual statements regarding the four variables. No explicit conclusion could be drawn by using this model. The model does not factor in the function of the external environment in leading to a change in the other variables. In 1967, Likert came up with a model that addresses organization dimensions such as motivation, communication, interaction and decision-making, goal setting, control and performance. Likert devised a 43-item survey that had questions closely related to the dimensions of the organization. The good with this model is that it can be used to determine employees’ perception of the organization dimension in the organization. Likert provided a customized scale label for each question stem. The major weakness in Likert model is that it does not demonstrate the interconnection of the organizational dimensions with the environment (Falletta, 2008). All the three models discussed above do not explicitly show the interconnection between organizational variables with the environment. The models discussed above portray organizations systems that are closed. The organizations are therefore depicted to be autonomous of their environment in which they operate. It is therefore necessary to discuss the open systems theory, from which most of the models to be discussed have borrowed. Open systems theory contends that organizations are social systems dependent upon the environment. In 1976, Weisbord proposed six broad categories (such as leadership and structures) within an organization. The strength of this model is that it focuses on the internal issues within an organization. This is by posing diagnostic questions that explain the difference between what is there and what should be done. For instance, it is common knowledge that if the gap between formal and informal system is critical, then the less effective the organization. The model is suitable for organizations with the mission and goals issues. However, the model itself does not predict the diagnostic questions in this model rather they appear to be based on OD practice. The questions only serve to complicate the model, as they do not necessarily form logic. Later, congruence model was developed. Congruence model for organizational analysis is more comprehensive as it has specifying inputs, throughputs and outputs which is consistent with open system theory. The model is based on four basic assumptions. The strength congruence model of organizational analysis is that it demonstrates the interrelationship between organization inputs such as the environment, resources and history. The conceptualization of each factor is explicit. The concept of congruence is applied in this model. It is thus suitable for organizations whereby departments do not fit well to complement each other’s role. It is also prominent in analyzing the whole organization. McKinsey 7s framework is named after a consulting firm called McKinsey and company that has conducted applied research in business and industry. It is the most popular model in the business circle and is suited to companies with managerial issues. The variables represented in the model are considered crucial to mangers and practitioners. The model requires changing all the variables in order to form a congruent system instead of merely changing one or two variables. However, the model does not mention the external environment. Performance and effectiveness are not also clear in this model. Tichy’s technical political cultural framework has inputs, throughputs, and outputs consistent with the open systems perspective. Environment and history are the principal categories of input to the organization while resources are the third category of input. The key strength is that the focal point of the model is the organizational effectiveness. All the variables are interrelated in this model. Harrison formulated a model that could be used to diagnose conduct within organizations (individual and group behavior). The model focuses on the organizational performance and the quality of life. The model integrates open systems perspective well with minimal boundaries between the organization and the external environment. However, the model does not include the divisional level of performance. The Burke-Litwin casual model of organizational performance, developed by litwin and later refined by Burke, has twelve variables. The key strength of this model is the explicit description of internal variables of the organization and environment. There is also distinction between transformational and transactional dynamics within an organization. Industrial Services of America Inc. is an American company involved in recycling of stainless steel, ferrous and non-ferrous scrap. The company operates in the recycling and wastes segments. The company has some issues that would be discussed later. Given the set of OD models from Falletta, one of the methods will be useful in analyzing the OD situation at Industrial services of America Inc. The best model would be congruence model of organizational analysis. According to Falletta (2008), this model is comprehensive and takes into account specifying inputs, outputs, and throughputs. The model provides the best approach for analyzing the relationships among operational issues, human resource, and financial strategy. It is the best approach to implementing long-term strategy after major acquisition (Hill & Jones, 2009). Based on research of Industrial Services of America Inc., I have found out three issues that could benefit from OD analysis. Issue 1 is that the company has been making strategic investments via acquisitions. There new acquisitions are not well aligned to Industrial services of America Inc. business model (Waste Business Journal, 2011). Issue 2 is the company has been recruiting new professional managers at a period when the business was lowest (Hoovers, 2011). Issue three is the expansion and improvement of company facilities (Business Wire, 2010). Based on my analysis above, the evidence indicates that the congruence model of organizational analysis would be the best for making solutions geared towards making the three business decisions work in tandem. References Business Wire. (2010, January 19). Industrial Services of America Charts Future Growth Plans. Retrieved November 7, 2011, from Buiness Wire: http://www.businesswire.com/news/home/20100119007507/en/Industrial-Services-America-Charts-Future-Growth-Plans Charles Hill, G. J. (2009). Strategic Management Theory:An Integrated Approach. Stamford: Cengage Learning. Falletta, S. (2008). Organizational Diagnostic Models. Retrieved November 7, 2011, from Leadership Sphere: http://www.leadersphere.com/img/OrgmodelsR2009.pdf Hoovers . (2011, October 30). Industrial Services of America, Inc. Retrieved November 7, 2011, from Hoovers: http://www.hoovers.com/company/Industrial_Services_of_America_Inc/hrhkif-1.html Waste Business Jounal. (2011, October 30). Industrial Services of America 2Q Profit Down on Weak Demand for Stainless. Retrieved November 7, 2011, from Waste Business Jounal: http://www.wastebusinessjournal.com/cgi-bin/company/corplist.pl?perpage=10&compcode=IDSA&start=10&oldcomp=+ Read More