The definition of diagnosis is stated as the process of understanding how the organization is currently functioning. Diagnosis provides the information necessary for designing change interventions. Diagnosis can be problem oriented or development oriented. If it is problem oriented, then it seeks reasons for the problems. If it is development oriented, it assess the current functioning of the organization to discover areas for future development.
In organizational development, diagnosis is used more broadly than a medical definition would suggest. It is a collaborative process between organization members and OD consultant to collect pertinent information, analyse it and draw conclusions for action planning and intervention. Diagnosis may be aimed at uncovering the causes of specific problems or it may be directed at assessing the overall functioning of the organization or department to discover areas for future development. Diagnosis provides a systematic understanding of organizations so that appropriate interventions maybe developed for solving problems and enhancing effectiveness.(Waddell, Cummings & Worley 2004)