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This report both introduces the topic of research on organizational diagnosis and discusses the methodological issues involved in it. It then describes the analyses to be reported in subsequent technical reports in the series. Four methods of diagnostic classification are to be examined using the Survey of Organizations data bank: distance function, multiple discriminant function, Bayesian, and decision tree.

The report summarizes findings obtained in the first two years of a study of the implications of possible values changes in society for Navy manpower and management practices. Multivariate analyses of data collected from Navymen in a representative sample of units and from a civilian national cross- section suggest that, while there is no perceptible generation gap on work and leadership style preferences, there is an educated-related generation gap on receptivity to autocratic versus democratic management styles. Functional characteristics of the Navy as an organization are summarized. Values and attitudes toward military service, by both Navymen and civilians, are similarly analyzed, and possible action or policy steps are suggested.

The report reviews available literature on the desirable properties of a diagnostic procedure for organizational development. A feasible, computerized diagnostic procedure termed CANOPUS (Computerized Analysis of Problems in User Systems) is proposed and conceptualized, and the necessary software for its first two functional components (Calculator and Prioritizer) is provided.