Diagnostic models are as a tools for analysis an organization. No matter what the data is explicitly or implicitly, it can help to analyze the results and provide the direction of consideration and basis. There are differing opinions about diagnostic models. Therefore, diagnostic models can be used to achieve the organization objective and it can lead manager to understand the organization’s performance. Diagnostic models can find out what types of practices should be carried out in the organization and
standards of performance for their achievement such as individual positions, teams, projects, processes, functions and programs. So, diagnostic model can be useful in an organizational change effort to analyze results of data collection, identify issues that will be occurred by in future as the organization change. The great useful purpose is to determine what actions should be taken for changing issues and evaluate the success of the organizational change effort.
2.1.1 External Environment
External environment is an outside institutions or forces which will potentially affect an organization's performance. External environment are always constituted from 4 factors. They are Political factors, Ecomonic factors, Socio-cultural factors and Technical factors and these factors call PEST. Managers can use these factors to examine the organisation’s environment. It can find out the problem or opportunity for the organisation’s development.
2.1.2 Political factors
Political factors is caused by government regulations including formal and informal legal such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability.
2.1.3 Economic factors
Economic factors will affect ...