Organizational Development - Meaning of Organizational Development and Significance | HRMantra HR Software

Organizational Development - Meaning of Organizational Development and Significance | HRMantra HR Software

7-8 mins 

Want to explore the World of Organizational Development and learn how to make a difference in the way your company''s culture is converted into an asset never to be downsized? Read on.

Definition Organizational Development

Organization Development can be defined as the science-based process that assists organizations in developing their capacity for change and improvement, while attaining effectiveness by improving, developing, and reinforcing strategies, plans, and processes.

The overall objectives of Organizational Development for an organization depend upon the organizations to organizations. In businesses, the increment in the profits is likely to be an issue. In social contexts, the social values play a significant role.

Not only that in health services, adaptability counts for maintaining functioning.

If we were to single out one goal it would be to improve the competitiveness of the organization.

Competitiveness is defined as the belief that every organization has particular resources together with distinctive competences that gives it a source of benefit in the market place.

These can include individuals (such as visionary business leaders like Elon Musk or teams like Google) innovative products (like SpaceX) exceptional service (such as Four Seasons Hotels) or even organizational culture (like Zappos).

It also involves how responsive an organization is to changing market demands.

With the grace of this point, an opportunity like this could consolidate your earnings over the five years, should you be quick to grab the opportunity. The organizational development has the objective of nurturing such perspectives because they might aid a business in having success in the market.

This means that OD is different from the change process. Organizational development concentrates on the improvement of the organizations'' ability to assess its functioning and adjust to achieve the goals. It is a process, not like change processes that are usually of a temporary nature.

5 Important Elements for Organizational Development

Now that we know the reason behind existence, let''s go ahead and take a look at how it becomes successful. The core principles are given below. Organizational development works toward progress by:

• Making changes in the facets of any given job right up to the organization
• Applying methods to transform an organization from within
• Involving people from the organization in key processes
• Promoting core values that bring through real life examples into an organization''s mission
• Establishing and adapting to change in a flexible and participative manner

Is basically about more stakeholders being more involved in the process such that both the process and the result are in turn finally shaped by those very stakeholders.

Indeed, it is an overall sense of accountability throughout the organization and an approach towards developing the organization as an entity (then fragmented parts).

The Four Components of Organizational Development

Representatives

Many programs deal with better employee relations and interpersonal interaction. Examples include progress reports: in the case of employees with difficulty in communication, this might be improved with one-on-one coaching; team building; and resolving conflict within the company through concrete solutions.

Design/Innovation

Techno-structural intervention ""Innovations"" are also known as ""Design Interventions"". These intervention programs create ways to enhance an organization''s technology or structure of reporting. An organization might change the structure framework to make it more centralized for improved communication or institute a hierarchy in the reporting structure.

Other interventions could include process improvements such as Lean or Six Sigma. The adoption of work designs include rotation, specialization , expansion, or enhancement approaches.

HRM

Also referred to as ""Human Resource Management,"" these changes are meant to improve the management of people within the organization. They are such as retooling and upgrading how human resources perceive and compensate employees through career development alternatives and the alteration of the performance appraisal system.

Interventions can be such as formulation of a diversity promotion strategy, investment in the mental health and wellness of the employees, or an upgrade in the talent development system.

Strategy

The changes lead to an improved purpose, mission, or product offerings of an entity. This category would involve changes in company culture and production, like changing the way things are done in the firm from an office-based set-up to a completely remote integrated workspace.

Netflix and Amazon have changed over time. For example, Netflix shifted from video renting to streaming, while Amazon shifted from being a virtual bookstore to an online marketplace.

Relating Human Resources to Organizational Development

Organizational development intervention that requires the involvement of HR capabilities is evident. Take, for instance, practices like performance management, goal setting, evaluation, and talent management; truly, they find a role in their achievement as far as OD initiatives are concerned.

However, although HRM concerns itself mainly with people practices, organizational development uses an approach. OD harnesses tools and techniques such as design, individual and group interventions work plans also more traditional people approach work plans to operate at all levels of the organization.

Be it organizational, group or individual. However the emphasis is mainly on topics whereas HRM tends to be more functional in nature.

External strategy consultants also often use OD approaches in their change management programming. HRM and OD both emerge from business practices. The mission, values and vision of an organization they both create strategic plans how to carry out those strategy in their territories. And, as researchers note, many of the early efforts in people research come from the well of organizational development.

Organizational development is important because it takes organizations to a different level of change. Change brings with it ideas and ways of doing things, but at it, makes sure that an entity still remains innovative and productive.

The Most Frequently Asked Questions

What is the basic objective for Organizational Development?

Answer: The basic objective of OD is enhancing the association''s ability to adapt to its external activities and relations.

How does organizational development differ from the methods used by management?

Answer: OD differs in that it takes its approach toward creating a significant impact on how employees will act and perceive the organization.

What will happen to a company if it lacks organizational development?

Answer: Outcomes would be lower production. Whether you take it as time wasted on work or just an ineffective outcome, the absence of corporate design will eventually lead to reduced profits.

How is organizational culture related to organizational development?

Answer: Development works toward increasing the effectiveness of a company by use of strategies, metrics, processes, and people. On its part, culture encompasses the values and behaviors that contribute to shaping the social and psychological environment in a business.

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