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Organizational Development Organizational Behaviour

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27 views18 pages

Organizational Development Organizational Behaviour

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profdharmeshjadav
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Organizational Development |

Organizational Behaviour

1
INTRODUCTION
Organizational Development is a planned effort to change
the culture, behaviors, ways of working and other “people”
factors of an organization to enable it to effectively meet its
strategic objectives.

Organizational development, often referred to as “OD”, is a


broad phrase that captures many things. Fundamentally though,
organizational development can be thought of as intentional
work designed to change and improve an organization so that it
is better at what it oes. 2
Benefits of Organizational Development

Increasing productivity and efficiency comes with


many benefits. One of the best ways to encourage positive
results in these metrics is by using a well-thought-out
organizational development structure. Organizational
development is used to equip an organization with the right
tools so that it can adapt and respond positively (profitably!)
to changes in the market. The benefits of organizational
development include the following:

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1. Continuous development
• Entities that participate in organizational development
continually develop their business models. Organizational
development creates a constant pattern of improvement in
which strategies are developed, evaluated, implemented, and
assessed for results and quality.
• In essence, the process builds a favorable environment in
which a company can embrace change, both internally and
externally. The change is leveraged to encourage periodic
renewal.
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2. Increased horizontal and vertical communication

• Of considerable merit to organizational development is


effective communication, interaction, and feedback in an
organization. An efficient communication system aligns
employees with the company’s goals, values, and objectives.
• An open communication system enables employees to
understand the importance of change in an organization.
Active organizational development increases communication
in an organization, with feedback shared continuously to
encourage improvement.
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3. Employee growth

• Organizational development places significant


emphasis on effective communication, which is used
to encourage employees to effect necessary changes.
Many industry changes require
employee development programs. As a result, many
organizations are working toward improving the skills
of their employees to equip them with more market-
relevant skills.
6
4. Enhancement of products and services
• Innovation is one of the main benefits of organizational
development and is a key contributing factor to the
improvement of products and services. One approach to
change is employee development – a critical focal point
is a reward for motivation and success.
• Successful engagement of employees leads to increased
innovation and productivity. Through
competitive analysis, consumer expectations, and market
research, organizational development promotes change. 7
5. Increased profit margins

• Organizational development influences the bottom


line in many different ways. As a result of increased
productivity and innovation, profits and efficiency
increase. Costs come down because the
organization can better manage employee turnover
and absenteeism. After the alignment of an entity’s
objectives, it can focus entirely on development and
product and service quality, leading to
improvements in customer satisfaction. 8
Organizational Development Process
• A conventional approach in the organizational
development process is the action research model.
This model is used by many organizations to guide the
OD process. It entails what its name describes –
research and action.
• However, there is much more to the OD process than
just research and development. There are multiple
loops used to transmit feedback, which makes an
organization more responsive to change. 9
Components of the Action Research Model

• The action research model comprises six key


components:

10
1. Problem diagnosis
• The organization development process begins
by recognizing problems. The method of
diagnosis usually takes the form of data
gathering, assessment of cause, as well as an
initial investigation to ascertain options.

11
2. Feedback and assessment
• The feedback and assessment step often involves
proper investigation of identified problems so that
there is a deep understanding of the challenge at
hand. This can include an appraisal of documents,
focus groups, customer or employee surveys,
hiring consultants, and interviewing current
employees. Information gathered is used to re-
evaluate the challenges in the first step.
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3. Planning
• Once an organization defines and understands its
challenge, an action plan is put together. The plan lays
down all the intervention measures that are considered
appropriate for the problem at hand. Usually, the measures
include such things as training seminars, workshops,
team building, and changing the makeup or structure of
teams. Additionally, measurable objectives, which define
the expected results, form an integral part of the overall
plan.
13
4. Intervention and implementation
• Once a plan is in place, the intervention phase commences.
Since the organizational development process is complicated,
implementation processes are a key element of the model. As
an example, if training classes are preferred over other
methods, test results will form the basis upon which the
training process is evaluated. The objective at this point is to
ensure the required changes take place. If that is not the case,
feedback is assessed and used to bring about the required
change.
14
5. Evaluation
• As soon as the intervention plan is complete,
the outcome of the change in the organization
is assessed. If the required change does not
take place, the organization looks for the
cause. Adjustments are made to ensure the
obstacle is eliminated.

15
6. Success

• Success denotes that the desired change took place.


A proper plan and efficiency standards are put in
place to ensure that the new switch is sustainable.
Ongoing monitoring is needed to ensure that
implemented changes last. Furthermore, as markets
and organizations change, new problems can arise,
leading to the push for further development. Great
organizations evolve continuously.
16
Final Thoughts
• Organizational development is essential, as it
helps organizations transition into a more
productive phase. Change helps to bring new
ideas and ways of doing things, and it ensures
that an entity is innovative and profitable.

17
More Resources
• Thank you for reading CFI’s guide to Organizational
Development. To keep learning and advancing your career,
the following CFI resources will be helpful:
1. Bureaucracy
2. Corporate Social Responsibility (CSR)
3. Lunch and Learn
4. Quality Management
5. See all management & strategy resources
18

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