Organizational Diagnosis When the Managerial

Organizational Diagnosis

When the managerial practice is characterized by numerous malfunctions that feed the so-called managerial crisis, it means that diminishing or eliminating the causes of the crisis cannot be possible without management change. One must be aware of the fact that the economic successes and failures are connected with the quality of change.

It is a well-known fact that companies need change in any activity domain. Basically, change represents any modification, transformation regarding the form or content of a process, activity, action, system, and that results with implementing new aspects. Change is mostly generated by: knowledge development, economic and technical progress, new values that emerge, internationalization of economies.

Whenever change is implemented in a company, this process requires managerial reengineering. This objective is achieved through the company's strategies. In order to create a successful strategy, the company must perform the diagnosis of the company, as the starting point.

The organizational diagnosis investigates the past and the present of the company, and the strategy projects the company's future. This is why the managerial approach of the organizational diagnosis is extremely meaningful in the context of management system modernization.

The organizational diagnosis is necessary whenever managers want to know details of the status regarding the division they run, and mainly its strengths and weaknesses, the causes that generate them and the areas in which decisions must be taken. Organizational diagnosis is required by many other situations, like: whenever the company implements large projects, characterized by strategic requirements, like managerial projection, company restructuring.

Organizational diagnosis is also performed at the end of important periods of time, usually at the end of the year, in order to identify the economic and managerial potential and the efficiency of the managerial team. Organizational diagnosis is mandatory before projecting the company's future and establishing the strategy. The diagnosis study must be accompanied by market studies, prognosis studies, and ecologic studies.

The organizational diagnosis is important due to its contents. The global or general diagnosis study must emphasize certain basic elements, like: identifying the company's position and role in the macro environment (characteristics, history, specific market), the dynamics of the company's economic and financial situation, the management system and its components (methodological, decisional, informational, and organizational), economic situation analysis, management situation analysis, strong points and their causes, weak points and their causes, strategic and tactic recommendations.