Organization development is defined as a systematic approach to boost the effectiveness of an individual as well as a business entity. It is planned and designed to solve relevant issues that harm the operational efficiency in the Organisation.
Meaning of Organisation development
Organizational development is also known as OD and is considered as an ongoing process of implementing change in an Organisation. It is achieved by aligning beliefs, attitudes, and values of the employees in a company through the reinforcement of training programs.
The fundamental concepts of Organisational development theory include
- Team building
- Career development
- Change management
- Organizational assessments
- Talent management
- Leadership development
Objectives of Organisation development
The objectives of Organisation development are as follows-
- Have self-control
- Strengthen inter-personal trust
- Replacing formal authority lines with personal skill and knowledge
- Increase interpersonal communication
- Enhance employee satisfaction and enthusiasm
- Stimulate employees so that they can express without fear
- The decision by collective efforts
- Increase support and trust amongst employees
- Have self-direction
- Encourage employee participation in decision-making
- Encourage self-motivation
- Developing viable solutions to relevant problems
- Increase commitment
- Making the individual align with the Organisation’s vision
- Involve members in the process of implementation and analysis
- Improve responsibility and ownership amongst employees during planning and execution
Core values of Organisation development
The core values of Organisation development are as follows-
- Increasing the effectiveness of an Organisation in terms of its goals and objectives
- Providing opportunities to act like people rather than only resources in the productive process
- Offering viable opportunities to the Organisation as well as its members so that they can develop full potential
- Providing opportunities in Organisation for the people so that they can align the work, the environment and the Organisation
- Creating a challenging and exciting work environment
- Treating human beings as individuals who have complex needs which are essential to the job as well as life
Features of Organisation development
The features of Organisation development are as follows
- Focused on the entire Organisation
The organization development program creates an environment that encourages employees to learn and grow. This is not the traditional training that an employee undergoes instead is focused on the entire Organisation
- Action research
An essential feature of the Organisation development process is that it keeps the focus on research of different work situations to understand the areas that create issues. The method tries to find viable remedies to improve Organisational performances
- System approach
Organization development is based on a system approach to encourage intergroup and interpersonal coordination and cooperation.
Problem-solving is one of the critical features of the Organisation development system. Action research provides essential data on issues and helps to solve them effectively. This results in self-sufficiency
- Group process
In the Organisation development process, the emphasis is on the group process instead of individual activities. It develops ways to improve functional conflicts and interpersonal relationships through viable discussions between the groups.
Feedback is an essential feature of the Organisation development process as it offers vital information that helps to make decisions.
- Learn through experience
An essential feature of the Organisation process is adopting new behavioral patterns by learning through experience. In this system, people will develop the behavioral concept and make changes on the basis of the situations they are facing and their related experiences. As Organisation development is flexible in terms of contingencies and solutions, it has the viability to choose the right resolution.
Importance of Organisation development
The importance of Organisation development is as follows-
- Organization development improves the performance of the whole Organisation
- Organization development increases the profitability of a business
- The Organisation development is needed to act as a bridge to shorten the gap between the required and existing abilities
- The Organisation development is essential because it boosts management, systems, processes and people capabilities
- The Organisation development can increase the quantity and quality of products based on customer demands
- The Organisation development process improves the financial position of the Organisation
- The Organisation development process is essential because it enhances the market share
- The Organisation development helps to achieve a competitive advantage over rival companies
- The Organisation development concept enhances the image and visibility of an Organisation
Process of Organisation development
The process of Organisation development includes the following steps –
- Initial consultation
The meeting with the consultant clears up all the requirements of the business entity. What does an Organisation expect from the Organisation plan is a million-dollar question and the consultant should be aware of it?
The meetings at the initial phases are very important for both the parties because it helps both the consultant and the business entity to arrive on the same page
The Organisation development consultant will have to spend quality time and effort in comparing all the relevant information. He will most probably conduct important interviews, develop surveys and arrange focus groups to identify and elicit relevant information.
This is the time to detect the positive areas for the research. Identifying both threats and opportunities is essential before making a suitable plan. These steps will help him to develop a realistic picture of the challenges that the Organisation is facing and on which the Organisation development plan must work.
Some very relevant issues at this point are the resources that should be used for the planned change and future change activities.
This step of the Organisation development process includes the study of the client system so that it becomes possible to identify, diagnose and understand the weaknesses and strengths along with its cause and effect.
The diagnosing method takes the form of the initial investigation, cause assessment and data gathering to ascertain options
- Analysis and feedback
This is the moment when the consultant has all the relevant information in his hands and he sits with the company head to share the results of his research. Hard data is always preferred over just talks and the consultant needs to be ready with hard facts and figures to support his finding.
It is at this time that the consultant provides gap analysis that shows the contrast between present affairs and the desired outcomes along with a roadmap that will help to bridge this difference. Giving feedback about the gathered information is an essential step in the Organisation development process
- Acton steps
The cooperation of the stakeholders is very important at this stage because the action steps include every detail from the group and individual coaching to team-building exercises.
It is one of the most critical steps in the Organisation development process because it outlines a timetable to complete benchmarks. Designing interventions to meet the objectives of the Organisation is what happens at this stage
When the intervention plan is completed, it is time to assess the outcome of change. If the required change has not taken place as per the requirement, then it is the time to look for the cause.
This step is necessary because adjustments will now have to be made to ensure the elimination of any obstacles in the process.
The term success means that the desired change has taken place. Efficiency standards have been put in their proper place to ensure sustainable new switch. It is the ongoing monitoring that provides the changes which have been implemented will last. Sometimes the constant changes in the market will need handling the issues as it arises.
It is a fact that there is scope for evolvement at regular intervals and everyone has to be prepared to face it. Give the Organisation development process some time and evaluate the difference after at least a period of nine to twelve months to know the difference.
The benefits of Organisational development are as follows-
- Meet challenges
The Organisation development strategy assist a company in meeting the challenges head-on that has come to light because of change
- Continuous development
Organizational development has been able to build an environment where the company can embrace both external and internal change to boost improvement by continuously assessing, developing, evaluating and implementing strategies
- Employee growth
The Organisation development program encourages employees to make necessary changes so that they can improve their skills and equip themselves with the right attitude and market-relevant skills. This program promotes employee growth and development
- Improve intergroup relationship
The Organisation development method encourages teamwork, cooperation, and mutual understanding to improve intergroup relationships.
- Frees from stress
It also boosts employee morale and facilitates job satisfaction that frees the employees from the burden at the workplace
- Increased communication
An open communication system proves useful because it enables the employees to understand how and why the concept of change is essential to an Organisation. Feedback and interaction helps to align the mutual goals, objectives, and values of the employees with the Organisation
- Improvement of products and services
The Organisation development concept can integrate innovation in its system that has increased products and services.
- Edge over competitors
When the employees accept change, it leads to the quick implementation of new and advanced technology in the Organisation. This results in better efficiency and productivity that provides the company with a competitive edge over rival brands
- Employee engagement
One of the benefits of Organisation development is that it increases employee engagement and this results in innovation and better productivity
- Promote change
The Organisation development has been able to promote change via market research and competitive analysis
- Increased profit margins
The Organisation development process has an impact on the bottom line of the financial statement. The company cuts down on absenteeism and employee turnover and this causes the costs to come down. Employee engagement and satisfaction boost productivity that results in increased profits.
- Better outcomes
The Organisation development process puts its focus on making use of the existing resources in a better way and taking advantage of new tactics and strategies. This leads to better outcomes
- Reduce wastes
Organization development process helps to reduce waste as it utilizes resources properly.
Here is a video by Marketing91 on Organisation Development.
The disadvantages of Organisation development program are as follows-
- Administrative difficulties and complexities
The Organisation development process needs continuous revaluation of the objectives of an Organisation. The process is very complex and quickly causes administrative challenges.
The Organisation development plan includes numerous slow processes. It harms the short-term productivity of an Organisation
- Additional expenses
To implement the policies of Organisation development, a company needs a good investment of both time and money. There should be a commitment to use the required resources for effective implementation. As it is an ongoing process the need for additional expenses never goes away and can prove very expensive for the firm
- Resistance from the employees
Employees do not like change because it signifies uncertainties. Organization development deals with change and hence is not acceptable at first to the employees and can unleash a culture of the clash
If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies.