Organizational Diagnosis:whole Food and ABC Company … Capstone Project
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Organizational diagnosis is a theoretical framework that management uses to assess and analyze the strengths and weaknesses of structural position of an organization in order to increase organizational effectiveness. (Noolan, 2004).
"The concept of organizational diagnosis provides a special procedure to collect vital information about the organization, to analyze the information and to design appropriate organizational interventions." (Falletta, 2005 p 3).
In essence, organizational diagnosis assists the top management to identify problems and provide solution to the problems. In essence, organizational diagnosis model assists in understanding more clearly about an organization in order to deliver solutions to the problems. (Bischoff, Sallstrom, & Trimborn, 2010).
Objective of this paper is to carry out the organization diagnosis for the Whole Foods Market and ABC Company using various organization models to assist the company to determine the strategy the Whole Foods can align its resources, productivity, inputs, performances, strategy and output.
Organizational Diagnosis Model
The paper evaluates different organizational diagnosis models in order to choose an appropriate model for the Whole Food Markets, which will assist the organization to align its strategies with available resources and market to enhance the organizational effectiveness.
The congruence model assists management to analyze situations that affects organizations negatively. The model guides the management in implementing an effective transformation process and performances process within the organization. The congruence model also assists organizations to achieve a transformation process by converting inputs into useful and maximum outputs. The congruence model assists firms to identify components that affect performances and transformation process, which include people, formal, as well as information organizational arrangement that can affect success and organizational performances. The limitation of the model is that is does not assist in understanding the effect of environmental factors on consumer demand.
The model is very good in analyzing the internal and external dimensions affecting organizational performances. In other word, the model can assist organizations to investigate the external and internal factors influencing organizational performances. It also reveals how these factors interact. The model includes the twelve dimensions to analyze organizational performances and the dimensions include external environment, organizational culture, individual needs & values, work unit climate, leadership, management practices, motivation, structure, systems, mission and strategy, systems, organizational performances and individual skills ability. The strength of the model is that it assists management to fulfill the desired management objectives. The shortcoming of the model is that it is not sufficient to go deeper into an organizational analysis.
Forced Field Analysis
The Forced Field Analysis is useful for the organizational diagnosis because it can assist organizations to identify a driving force as well as the restraining factors affecting an organization. In essence, the force field analysis assists a company to identify the factors causing changes as well as factors hindering changes. The model assists management to develop measures that can be employed to maximize the driving forces while limiting the effect of restraining forces on an organization.
Open System Theory
Open System Theory considers organizations as a social system being influenced by the environment that they are operating. The model is very useful in analyzing organizational culture as well as external factors affecting organizations. The open system theory allows firms to implement cycles of inputs, renewed input, and transformations.
The Leavitt's model specifies different variables within an organization and the variables include technological variables, human variables, structure variables, and task variables. The model assists in enhancing a greater understanding how a particular variable affect other variables. The structure of the identified variables includes communication systems, authority systems as well as workflow within an organization. The technological variables include all machinery and equipment organizations use to complete a major task and subtasks such as the production of goods and services. On the other hand, human variables refer to people used to carry out tasks. Typically, there is interdependence of these four variables and a change in one variable will affect the other variables. Despite the effectiveness of the model in enhancing dynamism and interdependency within an organization, the shortcoming of the model is that it is too simple in making direct causal relationships with four variables. Moreover, Leavitt does not address how the external environments could bring about changes in the variables.
McKinsey 7S Framework
The model is named after the McKinsey and Company. The model considers seven variables that include strategy, structure, skills, systems, staff, style and shared values. Typically, these variables are very crucial to organizational performances and a change in any of these variables will affect the other variables. The strength of the model is that it provides and analyzes essential variables affecting organizations; however, the model does not consider the environment factors affecting a firm's operations and effectiveness.
Six-box Diagnostic Model
The model is used to develop organizational structure and design that consist of different variables, which include structure, purpose, relationships, leadership, rewards and helpful mechanism. Although, the model has some similarities with the Burke-Litwin model, however, the strength of the Six-box Diagnostic Model is that it assists organizations to fill the gaps between the present and future goals. The shortcoming of the model is that it does not address the complex organizational circumstances, which Whole Foods ought to consider. Moreover, the model does not fully address the influence of external environment on its variables.
Recommendations and Issues facing Whole Foods Markets
Evaluation of the model reveals that the Burke-Litwin model is the most effective model that the Whole Foods can use for the organizational diagnosis because the model investigates both the internal and external environments facing organizations. Moreover, the model discusses the interaction between external and internal factors, which are considered the dynamic variables affecting the organization performances. The model also assesses the wider organizational context and provides the linkages between process and nature of changes within an organization. (Cacioppe, & Edwards 2005).
The new entrants into the organic food sector are the first issue facing the Whole Food Markets. The company is facing stiff competitions with some organic food companies such as Kroger, Wal-Mart and other organic food markets. Thus, these companies can reduce their prices to snatch the customers of Whole Foods.
Other issue facing the Whole Foods is the consideration of customer's interests. The customers should get maximum values for the product bought from the company. The company must consider that there can be a possibility that the consumer spending budget can reduce from $400 per month to $300 per month due to the economic situation.
The threat of substitute is the other issue facing the Whole Food Markets. Companies such as Wild Oats Market and Trader Joe & Co provide substitute products. The Trader Joe offers organic product, health foods and prepared meals. On the other hand, the Wild Oats Market offers a range of organic foods. While these companies are not direct competitors of Whole Foods, however, they provide substitute products.
In the face of the issues identified, the Whole Foods is required to provide a quality and affordable product that will enhance customer enjoyable experience. The company should consider freshness, taste and appearance. The company should also guarantee an enjoyable shopping experience for their customer.
Whole Foods Market is a business leader in the organic food market. The company has captured 1of the organic food market in the United States. The company also operates 11% internationally in Canada and the UK. However, an organization should use a series of competitive moves to grow business as well as attracting customer. Meanwhile, the best model that the Whole Foods should use for the organizational diagnosis is Burke-Litwin model. Falletta, (2005) argues that the model is an effective tool in enhancing relationships between strategy, leadership, financial situation and operational issues. The Burke-Litwin model also uses variables such as external environment, organizational culture, individual needs & values, work unit climate, leadership, management practices, motivation, structure, systems, mission and strategy, systems, organizational performances individual skills ability. Thus, the model will be very effective in analyzing the Whole Foods organization. The Burke-Litwin model can assist the Whole Foods to evaluate both internal and external factors affecting organizations. The model also provides linkages between a wider organizational context and change process within an organization. (Burke, 2010).
The report considers several issues affecting the Whole Foods Market and some of the issues are the competitive market environment and provision of quality products for customer. The paper evaluates different models that the company can use for the organizational diagnosis and after the evaluation, the report identifies Burke-Litwin model for the Whole Food because it can assist the company to address both the internal and external environmental problems. The company can use the model to understand the competitive market environment and the strategy that can be used to realign the internal environment to operate successfully within the external environment.
Bischoff, A.L., Sallstrom, L & Trimborn, P. (2010). Change and Renewal - Organizational Development: The Successful Implementation of Organizational Change at SonyEricsson from a Management Perspective. Germany: GRIN Verlag.
Burke, W.W. (2010). Organization Change: Theory and Practice… [END OF PREVIEW]
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