A finance manager observes that return-on-investment (ROI) is only 10 percent compared to the industry average of 20 percent. The manager informs top managers about his or her observation. This organization is in which stage of the Action Research process?

Question

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The finance manager is observing and diagnosing the organization's performance in relation to industry standards. This is the first stage of the Action Research process, which involves identifying areas for improvement and opportunities for change. Once the organization has been diagnosed, the next stages would involve selecting a strategy for change, identifying obstacles to change, and eliminating those obstacles. However, based on the given information, the organization is still in the diagnosing stage.

A Finance Manager Observes That Return-On-Investment (ROI) Is Only 10