Organizational Diagnosis – Palm Inc

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Table of Contents

Organizational diagnosis models
Force Field Analysis
Leavitt’s model
Likert system analysis
The Burke-Litwin model
McKinsey 7S model
The congruence model
Issues facing Palm Inc
Recommendation
Reference List

Organizational diagnosis models

There are various organizational development strategies which a firm can use to analyze its effectiveness. Organizational diagnosis strategy enables a firm’s management team to asses its current operation in order to undertake effective change interventions (Kotler, 2006, p. 32).

Some of the models used in organizational diagnosis include force field analysis, McKinsey 7S model, the congruence model, Likert system analysis, the Burke-Litwin model and Leavitt’s model.

Force Field Analysis

This model entails identification and analysis of the driving and limiting forces in an organization. Through the model, a firm’s management team is able to conduct an analysis of the firm’s environmental factors (Leadership Sphere, 2008, p.5). This is aimed at identifying the factors stimulating the need for change.

On the other hand, restraining forces relate to various organizational factors such as resource constraints and lack of employee’s morale. By identifying the forces, a firm is able to formulate goals and strategies aimed at driving the firm towards the intended direction.

The core objective of this model is to enable the firm reach the desired equilibrium while taking into consideration the social implications. This is achieved by adding the necessary driving forces and eliminating the various restraining forces.

Leavitt’s model

The model enables firms to specify particular variables. The variables are categorized into task, structure, human and technological variables. Structure variables relate to the firm’s communication systems, organizational workflow and authority systems while technological variables entail the various machines and equipments which are required to undertake the necessary tasks(Leadership Sphere, 2008, p.7).

The task variables relate to the tasks and subtasks which are undertaken in the process of offering products and services. On the other hand, human variables include the hum capital necessary to undertake the tasks aimed at achieving the organizational goals. However, all the four variables are interdependent. This means that intentions to change one of the tasks will affect the other tasks (Harrison & Shirom, 1999, p. 43).

Likert system analysis

This model entails an analysis of various organizational dimensions. The key dimensions considered in this model include decision making, motivation, control, performance, interaction and communication.

The Likert model aids in the determination of the management system adopted in a given organization. Some of the key management systems based on the above variables include exploitative-authoritative, participative, consultative and benevolent-authoritative.

In order to achieve this, a survey instrument containing 43 questions based on the above dimensions is used. The core objective of the model is to determine the employees’ perception regarding various issues (Leadership Sphere, 2008). During the process of implementing change in an organization, the employees may develop diverse perceptions.

The Burke-Litwin model

The model entails a number of key organizational features commonly referred to as the theoretical constructs which relate to various organizational variables such as the firm’s mission, strategy, and the external environment, leadership and management practices.

In addition, the model also considers the firms systems, task requirement, motivation, employees’ skills or job match, needs, and values, performance, work unit climate and organizational culture(Leadership Sphere, 2008).. The firm’s external environments such as economic and political environments have a direct influence on the firm’s performance (William, 2003, p.54).

McKinsey 7S model

The model is based on 7 levers or variables which include style, system, strategy, staff, shared values, structure and skills. According to Nadler and Tushman (1980), all the variables are interdependent.

Structure refers to the firm’s organizational structure while strategy entails the plan adopted by the firm in the allocation of resources in an effort to attain the desired goals. The firm’s systems relates to the processes and procedures which guide all the organization’s operation while the staff includes the various personnel within the organization.

On the other hand, skills entail the personnel’ capabilities while style refers to how the firm’s managers behave in their effort to achieve organizational goals. Finally, shared values relate to the guiding concepts which are shared by all organizational members.

To ensure success and hence attainment of long-term benefits by implementing change within an organization, all the variables in the 7S model should be considered (Leadership Sphere, 2008).

The congruence model

This is a comprehensive organizational analysis model. The model specifies the firm’s outputs, inputs and throughputs. Congruence model is based on a number of assumptions. For example, the model assumes that the firms are dynamic entities and that they are open social systems.

In addition, the model also assumes that various interactions within an organization such as between the firm’s systems, individuals and groups occur at various levels. The various inputs considered in the model relate to various factors which include the firm’s resources, history and environment (Leadership Sphere, 2008). On the other hand, the outputs relate to individuals, systems or group outputs’.

The various outputs include the firm’s performance, products, services and effectiveness of operation. The systems components or throughputs entail the tasks to be undertaken by the firm. These are made possible by individuals, organizational arrangements such as the processes and methods.

Issues facing Palm Inc

Decline in unit shipment

Currently, Palm Inc. is faced with a decline in the volume of shipments both in the United States and the international market. One of the major causes of the decline is that the industry is maturing (Das& Paul, 2010, para. 4).

The resultant effect is that there is a general reduction in demand for handheld devices. For example, during its 2009 financial year, the firm witnessed a decline in its sales revenue with a margin of 44% compared to 2008. The decline in sales for smartphones was 41 %( Rubinstein & Jeffries, 2009, p. 31).

Stringent laws

In its operation, Palm Inc. is charged with the responsibility of complying with various laws regarding various issues such as environmental matters, packaging and hazardous material usage (Rubinstein & Jeffries, 2009, p. 4). For example the firm is under strict regulations regarding the use and disposal of lead.

The firm is required to act in a social manner by collecting, treating and effective disposal of their products upon the end of their life. Failure to comply with these requirements can result into harming the firm’s reputation and increment in additional costs such as through recalling its products already in the market. This can limit the firms’ ability to market its products in some countries (Yoffie& Kwak, 2001, p.34).

Complexity of procurement and re-designing

The firm is also faced with a challenge due to increment in the degree of complexity with regard to designing and procurement procedures. In its operation, the firm depends on its suppliers. Some of the suppliers are the only source of the firm’s raw materials while others are its competitors.

There is a high probability of the firm’s operations being affected if the competitors are not willing to supply the firm with the required raw materials and other inputs (Rubinstein & Jeffries, 2009, p. 4).

In an effort to be effective in its procurement processes, Palm Inc. incurs additional cost. This arises from the fact that it has to identify firms who can supply compliant materials.

In addition, the stringent legal environment requires the firm to redesign its products from time to time so as to comply with the legal requirements. These requirements affect the firm’s financial performance such as the decline in operating cash flow.

Most appropriate model to use

When conducting an organizational diagnosis, the most appropriate model to use is the Burke-Litwin model. This arises from the fact that the model is very comprehensive. The model integrates both internal and external perspectives of analyzing an organization.

Some of the internal variables considered include organizational culture, leadership, the firm’s mission and strategy. Consideration of these variables is paramount in evaluating an organizations position (Dess, Lumpkin & Eisner, 2007, p.43).

In addition, the management is able to determine interdependence between the various internal and external variables. For example, leadership in an organization has an influence on the firm’s operation through its effectiveness in encouraging employees and providing directions. On the other hand, the firm’s mission and strategy provides a clear purpose for the firm.

Therefore, it is important to ensure that all the employees understand and believe in the purpose and how the firm intends to achieve it. The firm should also analyze its culture which entails the various beliefs, norms and values which are form the basis of organizational behavior (Nadler & Tushman, 1980). An analysis of how organizational culture has been affected by various practices is paramount.

Recommendation

Palm Inc. management team should incorporate the Burke-Litwin model. This arises from the fact that the firm will be able to gain a concrete understanding of the firms operation. The model enables the firm to identify its strengths and weaknesses by considering the various variables. As a result, it is possible for the firm to effectively identify areas which are affecting the firm’s operation.

The resultant effect is that the firm will be able to make the necessary changes hence improving its survival in the market. Through the Burke-Litwin model, Palm Inc. can be able to effectively diagnose the issues it is currently facing. This will enable the firm in determining the fit with its potential partner.

For example the firm can be able to analyze the various external factors leading into a decline in the volume of unit shipment. In addition, the firm can also be able to evaluate the legal environment and its effects on its operation. This will enable the firm to determine whether it is operating in a legal manner.

This can be achieved by incorporating various strategies used to analyze external business environment such as the PESTLE model. By evaluating the external environment, the model can also enable the firm to identify other firms in the market whom the firm can use as its key suppliers of its key raw materials and other inputs.

Reference List

Das, A. & Paul, F. (2010). Palm Inc. has hired bankers to explore several options including sale of the company whose smartphones sales have suffered badly against rivals like iPhone and Blackberry. Web.

Dess, G., Lumpkin, G. & Eisner, A. (2007) Strategic Management (3^rd Ed.). Boston: McGraw-Hill Irwin.

Harrison, M. & Shirom, A. (1999). Organizational diagnosis and assessment. New York: Sage.

Kotler, J. (2006). The heart of change. Chicago: Transmedia.

Leadership Sphere. (2008). Organizational diagnostic models. Web.

Nadler, D. & Tushman, M. (1980). A model for diagnosing organizational behavior. Organizational dynamics. London: Butterworth Heinemann.

Rubinstein, J. & Jeffries, D. (2009). Palm Inc. Washington: United States Securities and Exchange Commission.

William, G. (2003). Authentic leadership: rediscovering the secret to creating lasting value. New York: John Wiley & Sons.

Wyatt, W. (2002). Organizational change: theory and practice. New York: Sage.

Yoffie, D. & Kwak, M. (2001). Mastering Strategic Movement at Palm. MIT Sloan Management Review, 43-1, 55-63.

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