Organizational Development

What is Organizational Development?

Organizational Development (OD) can be defined as the process of hierarchical change in the organization. Organizational Development (OD) is directly correlated with behavioral science which is not a matter of overnight transformation process. It should be implemented in the organization in a systematic way, so that organization can be benefited from the process. Key concepts of OD theory include organizational culture, organizational climate, and organizational strategy which emerged from human relations studies in the 1930s.

 

Organizational Development as per Scholar

Beckhard (1969), “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization’s ‘processes,’ using behavioral-science knowledge.”

Cummings and Worley (1997), “Organization Development is a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization’s effectiveness.”

 

Objectives of Organizational Development

Organizational development strategies help organizations to achieve the objectives and goals of the organization. There are many objectives of organizational development which can be summarized as below-

  1. To align employees with the organization’s mission and vision,
  2. To handle organizational conflict in an effective manner,
  3. To increase satisfaction and commitment level of the employees,
  4. To increase the interpersonal trust level of the employees,
  5. To solve problems effectively rather than neglecting,
  6. To increase employee collaboration etc.

 

7 Key Benefits of Organizational Development

Organizational development enables an organization to be equipped with the right capabilities to adapt to a changing environment. The practice of OD increases organizational productivity and overall efficiency which ensures organizational growth. 7 key benefits of organizational development include the following:

 

  1. Continuous Development

Organizations can enjoy the flavor of sustainable growth or development when they practice or participate in organizational development. Organizational development practice allows an organization to continuously improve in productivity. Organizational development (OD) allows regular evaluation of strategies to ensure the effectiveness of the OD system. As a result, both internal and external changes occurred for the betterment of employees and the organization.

 

  1. Effective Business Expansion

The practice of OD allows employees to expand their businesses in new areas and targeting new customers always. An organization expands its business when it runs through OD practices. Because future business expansion depends on the vision of the future operation of the organization. OD helps employees to be aligned with the vision of the organization and they try to contribute to effective business expansion of the organization.

 

  1. Increased Effective Communication

Effective communication systems and cultures are established through the practicing organizational development strategy. OD increases the effectiveness of communication as well as enables organizations to develop efficient communication styles. This system helps employees to be aligned with the mission and vision of the company. An open communication system is established through OD which helps employees to understand the importance of change in the organization for better growth and development in near future.

 

  1. Employee Growth

Employee growth initiatives for employees are always treated as the best practice in OD. When an organization emphasized organizational development, ultimately employee’s communication strategies improved and they can easily fit themselves with the changing culture. Organizations arrange different types of outbound programs to improve employee morale and make them skill as well. This initiative not only helps in organizational development but also increases employee growth.

 

  1. Improvement of Products and Services

Due to organizational development, products and services levels improved as lots of innovation take place in the workplace. Organizational change happens and employees feel motivated to contribute to organizational growth.

 

  1. Increased Organizational Profit

Organizational development ensures increased organizational profit through the improvement of products and services. Organizational development practices ensure the reduction of employee absenteeism and turnover, multiple unnecessary cost reduces, and ultimately productivity and profit increases. Employer’s satisfaction increased due to an increase in organizational profit through quality products and services.

 

  1. Capacity Building

Organizational development (OD) strategies help organizations to build the capacity of the employees through different kinds of training and workshop. As requirements are being changed over time, an organization should keep its employees updated according to trends. OD makes employees competent for the growing market.

The different small and medium-scale projects can be run under OD strategy to increase employee’s competency and overcome the weaknesses.

 

  1. Cost Reduction

Employee satisfaction is increased through OD. This OD process helps to reduce employee absenteeism and turnover which reduces the costs related to recruitment. OD strategy focuses on continuous improvement that results in improved productivity and reduces operational costs.

Related: Top 15 Employee Motivation Strategies and Benefits

 

The Process of Organizational Development

The organizational development process is a systematic and research-based series of steps. The steps of organizational development include the following:

  • Problem Identification: Problems should identify which are aligned with business goals. Companies can use a data-driven approach to identify problems through formal surveys and employee feedback. The organization should collect or identify problems according to organizational development strategies and these should be considered as scope of opportunity.

 

  • Situational Assessment: This is the formal assessment of problems through documentation review, focus group discussion, individual consultation, survey, etc. The purpose of situational assessment is to identify the reasons behind the problems, find out the barriers to improvement and solutions. This is considered as fact gathering and assessment.

 

  • Action Plan Preparation: This is the most important and longest step of the organizational development process. Here, the organization prepares an action plan to overcome identified problems. The action plan should address specific action with timeline and dissemination of responsibility. Actions should be SMART in an action plan to ensure targeted output.

 

  • Implementation of Action Plan: This is the stage of putting a plan into action. Strategic steps need to take for the proper implementation of the action plan. Continuous monitoring, feedback, and communication can increase the effectiveness of this implementation step.

 

  • Data Gathering: Company has to gather all data to know the effectiveness of changes towards business goals. This will help to manage the overall process effectively, so that company can know and evaluate its initiatives against identified problems.

 

  • Evaluation of Result: It’s the step of evaluating employee feedback, whether changes can effectively meet organizations’ business goals or not. This process helps organizations to think differently for overcoming all obstacles. Evaluation of results should process strategically so getting optimum results.

 

  • Feedback and Adaptation: Feedback collection sources and processes need to be authentic for an accurate result. Otherwise, falsified data may be gathered. The company should take corrective action based on feedback. If analysis report or feedback is observed successful then the company can keep the current plan in their continuation plan.

 

Leadership and Organizational Development Jobs

Organizational development is an effective business process to improve companies’ performance through enhanced structures and strategies. OD helps companies diagnose problems, enhance employee satisfaction, increase profits. Presently, companies are offering jobs related to leadership and organizational development. Here are some examples of organizational development jobs with specific responsibilities-

  • Organizational Development Manager
  • Organization Effectiveness Manager
  • Human Resource Specialists
  • Talent Development Manager
  • Learning Specialist
  • Organizational Consultant
  • Succession Planning Specialist.

 

1. Organizational Development Manager

Organizational development manager or specialists plan, develops, implements and administers development and training programs that are usually related to employee engagement and leadership development. The major job responsibility of an organizational development manager or specialist includes the following:

  • To conduct a training needs assessment for employee development in order to achieve the goals and objectives of the company.
  • To design and develop training programs for management and employees.
  • To develop learning materials, audio-visual materials, instructor guides, and training plans.
  • To conduct training evaluation for achieving company objectives.
  • To train employees on HR issues and best practices.

 

2. Organization Effectiveness Manager

Organization effectiveness managers help organizations solve different types of complex organizational challenges. This is one of the jobs in organizational development that is mostly related to the activity for achieving organizational goals and objectives. The major job responsibility of an organizational effectiveness manager includes the following:

  • To conduct a training needs assessment for employee development in order to achieve the goals and objectives of the company.
  • To identifies and incorporates best practices in the organization.
  • To design and develop HR training programs for the employees.
  • To conduct a training needs assessment for employee development in order to achieve the goals and objectives of the company.
  • To design and develop training programs for management and employees.
  • To develop learning materials, audio-visual materials, and a training plan.
  • To conduct training evaluation for achieving company objectives.

 

3. Human Resource Specialist

Human resource specialists or HR Specialists support organizations to improve overall performances. The major job responsibility of Human Resource Specialist includes the following:

  • To create, implement and evaluate all kinds of policies and procedures to achieve business goals.
  • To design and implement effective training programs.
  • To evaluate the effectiveness of the training program and record keeping.
  • To conduct and analyze compensation surveys.
  • To conduct quarterly and annual employee performance assessments.
  • To developing and administer health and safety programs for the employees.
  • To perform job evaluation and job analysis.
  • To perform workforce planning.
  • To maintain all employee records and hiring information.
  • To manage the recruitment process.

 

4. Talent Development Manager

The talent development manager of an organization identifies training needs analysis, staffing, and creates strategies to help employees achieve goals. The major job responsibility of Talent Development Manager includes the following:

  • To drive the employee engagement strategy of the company.
  • To look after rewards and recognitions programs of the company.
  • To develop specific criteria for evaluating the effectiveness of training programs and monitor training activities as well.
  • To lead and manage the performance management system.
  • To conduct exit interviews of the employees for increasing HR functions.
  • To resolve employee relations issues.
  • To conduct an investigation, prepare and maintain reports of investigation and submit to management.

 

5. Learning Specialist

A learning specialist generally focuses on the design and development of positive educational experiences in the organization which is aligned with the organization’s goal and objective. The major job responsibility of a learning specialist includes the following:

  • To develop and implement a mentorship program for achieving organizational goals.
  • To develop and implement learning strategies for the company.
  • To provide guidance on adult learning theory and practice.
  • To develop learning solutions for existing organizational problems.
  • To implement and look after compliance training programs across the departments.

 

6. Organizational Consultant

Organizational consultants generally work with frontline supervisors and they ensure positive communication to help others grow. The major job responsibility of an Organizational Consultant includes the following:

  • To assess and reengineering business structures, processes, and resource utilization.
  • To execute efficient and cost-effective developmental strategies in different operational stages in the facility.
  • To design and implement training programs and monitoring of training activities.
  • To conduct skills assessment of the employees and staff development initiatives as well.
  • To optimize departmental efficiency for achieving business objectives.
  • To ensure employee retention by taking necessary measures in the facility.

Read: 7 Key Steps to Succession Planning

 

7. Succession Planning Specialist

Succession planning specialist is one of the major jobs in organizational development. The major job responsibility of succession planning specialist includes the following:

  • To develop successful strategies in the organization that aligns with organizational business objectives.
  • To identify relevant assessment tools for talent identification and ensure the availability of resources across the business.
  • Monitor the use of talent assessment tools and techniques by taking feedback from the department head.
  • To ensure a fair succession assessment plan for proper selection of talent and succession management as well.
  • To ensure succession planning strategy for the critical position of the organization.
  • To review succession planning strategy periodically and monitor the progress of succession planning.
  • To evaluate succession planning program documentation and relevant metrics.
  • To provide department-wise training regarding the overall procedure of succession planning and career development.

 

There are lots of jobs in organizational development. The scope has been increased recently and it is growing day by day. Organizational development practices increase the effectiveness of the employees and ensure organizational growth. So, every organization should practice OD without any delay and should be included in the organizational strategy to ensure organizational development. Organizational development strategies and models allow organizations for moving towards sustainable development.

 

Challenges in Organizational Development

There are many benefits of OD, but organizations have to face some challenges for the successful implementation of OD. Some common challenges of the organizational development process include the following:

  • Fear of the unknown: Employees get fear when an organization tries to initiate new action. They think that their job is not secured and it will make them jobless. As a result, they didn’t involve themselves completely.
  • Improper Communication: New initiatives can’t see the light horizon due to the improper communication system of the organization. It may create difficulties in the case of OD implementation.
  • Lack of understanding: Some employees of the organization didn’t show a positive attitude in case of organizational change which is considered a challenge of OD. Proper training and counseling can change employee mindset which helps to improve organizational culture.
  • Stress: In absence of proper support for the implementation, employees may feel stress. Employers should take only real action. It helps organizations to remove employees’ stress or burnout and ensure work-life balance.
  • Insufficient Leadership: This is considered a challenge of organizational development strategy. Because OD implementation is almost impossible without proper leadership skills and practices.

 

Organizational development (OD) increases organization effectiveness, makes employees more efficient and reduces drawbacks of the organization. It also improves the importance of teamwork in the workplace. Organizational development strategies could be different from organization to organization. But the ultimate objective remains the same for every organization.

 

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