Organizational diagnostic factors in family business

Michita Champathes Rodsutti, Piyarat Makayathorn
2005 Development and Learning in Organizations: An International Journal  
O rganizational diagnostic factors are factors that need to be explored in order to understand existing strengths and weaknesses of the organization before any changes can take place. The purpose of the diagnostics is to give some clues regarding the existing organizational situation that can either promote or block the oncoming changes. The process of organizational diagnostics usually starts with extracting factors from the best-practice organizational model and using these as guidelines for
more » ... as guidelines for analysis. However, factors that are normally listed cannot cover all the aspects of every organization. Therefore, the objective of this research was to explore the organizational diagnostic factors in three Thai family businesses that are different from those quoted in the best-practice model. Participants in this study were nine experts who had participated in change management for new information technology (IT) systems in their businesses. The methodology used in this research, as suggested by Di Pofi (2002) , was qualitative analysis by conducting in-depth interviews with all participants. The result found from the study showed that there were six diagnostic factors in Thai family businesses that were not the same as the model of change: (1) communication; (2) generation; (3) ownership; (4) family structure; (5) politics; and (6) national culture. Moreover, these factors were mentioned by all participants as either enablers or barriers, that affected change management and had to be thoroughly analyzed before any changes were introduced in the business. From the interviews, all participants mentioned communication most, as they indicated that communication could either promote or block the success of organizational change. Interviewees also stated that people in family businesses sometimes overlooked the importance of communication because they assumed that others thought in the same way as they did. This poor assumption created many communication problems in family businesses which would hinder the commitment to change. Furthermore, if the company employed some external change agents or consultants, problems in communicating with outsiders would also exist and these problems could block the coordination of the change. On the other hand, if all members were properly informed about the oncoming change, the Michita Champathes Rodsutti is the Managing Director,
doi:10.1108/14777280510580690 fatcat:tywwnjumxnhkfc52akistvc3mq