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Organisational Diagnosis or Determining the Right Direction for Organisational Development

March 15, 2021
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It is well known that development is associated with change, and in this case with a transition from the current state of the organisation to the desired one. For this purpose, the analysis of the strengths and weaknesses of the organisation is important, as well as of the causes and factors that have led to its present state, and also determining the organisation’s opportunities for future development. It is in this process that organisational diagnosis plays an important role as the first step of organisational change.

The need for a detailed diagnosis can also be illustrated with an example from our daily lives: Would you trust a doctor who gives you a diagnosis or prescribes treatment without having thoroughly examined your condition and symptoms? Unfortunately, there are still organisations that take action without first having conducted a detailed analysis of the current state of their organisational structure. This, in turn, more often leads to “alleviating the symptoms” than to resolving the actual problem. This is precisely why gathering information from all units of the organisational structure, its detailed analysis, and integrating this information into building a strategy for future development are of exceptional importance.

However, conducting a detailed and effective diagnosis is not something that can be done in a day. It is a process that requires careful planning and investment of resources. Organisational diagnosis, of course, is a process that can be divided into several key stages. Here they are:

  • Defining goals and expectations: This is the first important step that will determine the direction of development and will largely predetermine the measures to be taken to resolve problems and improve the organisation’s functionality. Defining the goals and expectations for the organisation’s development can be aligned with its market position, team dynamics, working climate, and the resources available to the organisation.
  • Preparation and planning: Planning the steps for gathering the necessary information, its analysis, and its effective use for the organisation’s purposes is also an important part of organisational diagnosis. In order for the diagnosis to proceed smoothly, be effective, and not require excessive and unnecessary resources, it is necessary to prepare a detailed plan and the needed tools for going through all subsequent phases of organisational diagnosis.
  • Data collection and assessment: This step is to a large extent the core of organisational diagnosis. Having sufficient and accurate information is a key component for determining the weak and strong units and for identifying the resources available to the organisation.
  • Feedback: In this phase of organisational diagnosis, the aim is to analyse the gathered information and, on the basis of it, provide feedback and recommendations for the future development of the organisation. Here, 360-degree feedback is very important, as it provides an opportunity for an overall view of the organisation’s development and the effectiveness of the previous phases of organisational diagnosis.
  • Assessment and measures: Again on the basis of the gathered information and with the help of the feedback received from the organisation’s management, specific measures can be developed to be applied to improve the organisation’s state. These measures will be related both to developing the organisation’s strengths and to optimising its weaknesses and resolving the identified problems.

Organisational diagnosis can cover all units of the organisational structure, as well as individual ones that are identified as critical for the organisation. For example, the diagnosis can be focused on formal or informal work groups, on conflict management and resolution, or on decision-making strategies. This, of course, is determined by the state and functionality of the organisation, its position and activity in the market, as well as by the needs identified by the leadership team. Regardless of the organisation’s goals and the trends in its development, regularly conducting a diagnosis of individual units or of the entire organisational structure can prove to be a key factor for effective organisational development!

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