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Examines the relationship between employees’ responses to the Organizational Diagnosis Questionnaire and ratings of organizational effectiveness in two organizations. Preziosi’s (1980) Organizational Diagnosis Questionnaire (ODQ), and Steele’s (1987) Organizational Effectiveness Questionnaire (OEQ), were distributed to employees in two Australian companies, and a total of 349 useable responses were obtained. Factor analysis of the ODQ yielded six meaningful factors which were interpreted in terms of the original sub‐scales of the ODQ as proposed by Preziosi. Factor analysis of the OEQ gave rise to two positively correlated effectiveness factors. Cronbach alpha reliability estimates were obtained for each of the original ODQ sub‐scales and for the six sub‐scales derived from the factor analysis of the questionnaire responses. Reliabilities for the two sets of sub‐scales were comparable, but with the factor‐based scales giving slightly higher reliabilities. Comparison of mean scores derived from the two organizations showed that significant differences existed for the organizational effectiveness measures, and for several of the measures derived from the ODQ. Regression analysis showed that the difference in the effectiveness rating of the two organizations can be partially explained in terms of the differences in responses to the ODQ.

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