Hi Ayesha,
an organizational analysis/diagnosis will help in an over all understanding of the organization and even an indepth knwledg of the same and the result will produce the fertilizer which will help the organization in the growth process.
well organizational analysis/diagnosis are conducted for the following reasons;
1. Reduction in the profit level and the reasons not known to the management
2. Company has reached a Saturation level in terms of growth and needs to expand. but some how finds that the reason for their saturation is due to loss in a particular department of the company. to grow they need to find the reason for the same.
3.to incorporate change in the system.
the above is not en exhaustive list, however are some of the practical reasons why we conduct the analysis/diagnosis.
coming to your next question. we had conducted an org diagnosis for our client here and the process for the same was;
1. Review with the company management
2. gathering and analysing the existing process in the company
3. gathering other HR data (selection process, retention rate, turnover etc...)
4. understanding the vision of the management
5. conducting of SWOT
6.understand about the company in depth
7.Analyse the scope for improvement
8.design a customized action plan for implementation
9.implementation and support plan
10.training and hand holding.
i hope the same will put some light on your doubts.
Rgrds
Seetha Nambiar