Organizational development is the process by which an organization develops its ability to generate value. It is a continuous process where the organization continuously seeks to improve its ability to generate value. This is done by identifying opportunities to improve organizational performance and then creating systems and business processes to enable the organization to exploit these development opportunities. The result is an organization that is capable of generating more excellent value for its stakeholders than it otherwise would have been.
Organizational development has several definitions, often broken down into three separate but related areas of study: intellectual, social and spiritual development. The intellectual aspect of organizational development focuses on the development of the knowledge and skills of an individual. This includes training in the fields of psychology, management, and leadership, which enables individuals to have a better understanding of themselves and others and to make more informed decisions. The social aspect of the organizational development process focuses on the development of relationships and interactions within an organization.
The social aspect of organizational development is often referred to as human development. This encompasses a wide range of topics, including the development of skills in communication, conflict resolution, listening, and more. Human development aims to enable individuals to be their best selves, and to contribute to their organizations to the greatest extent possible. The spiritual aspect of organizational development refers to the development of an individual's spiritual life.
The social aspect of organizational development is often broken down into two separate but related areas of study: organizational culture, and team-based organizational development. Corporate culture is the shared set of values, beliefs, and behaviours that exist within an organization. It is the result of the social aspect of organizational development- the interactions and relationships that exist between individuals and groups within an organization. Corporate culture is a reflection of the leadership skills, principles, and behaviours that exist within an organization.
Related: The best definitions of organizational culture
The third aspect of organisational development, spiritual development, focuses on the development of an individual’s connection to a greater purpose, commonly referred to as a calling. This may take the form of involvement in a specific cause, such as working in a children’s hospital, or maybe more general, such as being part of a spiritual group. Spiritual development is often seen as the most important aspect of organisational development, as it is this aspect that allows an individual to align their personal goals with the greater good of the organisation. (Note: the words ‘organisational development and ‘human development’ are often used interchangeably by practitioners of organisational development.)
The first definition of organisational development is the process of shaping organisational goals and strategies to meet those goals and to create maximum value for the stakeholders of an organisation. This definition is often referred to as top-down organisational development, as it focuses on the goals and strategies of the leadership of an organisation. The second definition of organisational development is the process of shaping an organization’s culture, values, and practices to meet its goals and create maximum value for the stakeholders of an organisation. This definition is often referred to as bottom-up organisational development, as it focuses on the culture, values, and practices of the members of an organisation.
Purpose of Organisational Development
The goals of organisational development are twofold: first, it aims to improve the performance of an organisation by improving the skills of the workforce, the organisation’s culture, and the way the organisation’s operations are run. Second, it aims to improve the relevance of an organisation to its stakeholders by enhancing the connection an organisation has to its community, society, and the environment. Organisational development is often used to improve an organisation’s performance, but it is also used to improve the health and vitality of an organisation. In some cases, it is used to improve the transparency of an organization.
Related: Performance management process
Organisational Development Interventions (OD)
Advertisment
Organisational development interventions can take many forms and are often implemented in combination. Some of the most common forms of organisational development interventions include coaching, training, leadership development, remuneration, rewards, management systems, structures, policies, and processes. Some of the most common types of organizational culture include healthy, high-performing, committed, visionary, ethical, concerned, and enlightened.
The primary tools of organisational development are interventions. An intervention is a change in the way something is done in an organization. Organizational interventions can take many forms, and often fall into one of two categories: process-based and substance-based. Process-based interventions are changes to the way things are done in an organisation.
Protip: OD interventions can also be categorized into Human Process Interventions, Technostructural Interventions, Human Resource Management Interventions, and Strategic Change Interventions
Related: Total Rewards: What you need to know
Types of Organisational Development Interventions
Several different types of organisational development interventions can be implemented. Each type of intervention has its own set of benefits and drawbacks. Below are some of the most commonly used types of interventions.
Training Programs
Training programs are one of the most common types of organizational development interventions. They are typically designed to improve the knowledge, skills, and abilities of participants. The goal of a training program is to increase the level of proficiency of those participating in the program. Successful organisational development is achieved through robust employee development.
Coaching Programs
Coaching programs are another popular form of organizational development intervention. Coaches work closely with clients to provide advice and guidance regarding personal issues. They also provide feedback and support as necessary. Coaching programs can be used to address a wide variety of problems including improving interpersonal relationships, increasing productivity, developing new ideas, and coping with stress.
Leadership Development Programs
Leadership development programs are similar to coaching programs in that they focus on helping others become better leaders. However, leadership development programs tend to be more structured than coaching programs. In addition, they often involve a formal assessment process.
Change Management Programs
Change management programs are designed to facilitate change within an organization. They are usually focused on changing attitudes and beliefs about a topic rather than directly addressing skills and abilities.
Strategic Planning Programs
Strategic planning programs are designed to ensure that organizations have clear goals and objectives. They are meant to identify ways to achieve those goals and objectives.
Performance Improvement Programs
Performance improvement programs are designed to improve the performance of individual employees. They are usually based on the idea that poor performance is due to a lack of knowledge or skills. Therefore, they attempt to teach employees how to perform tasks correctly.
Team Building
The process of forming a team is known as team building. The most well-known OD intervention is team building. It refers to exercises that assist groups in improving their task-solving abilities. Volunteering, team sports, and Pictionary are examples of team-building activities. The most well-known OD treatment. It refers to exercises that assist groups in improving their task-solving abilities. Volunteering, team sports, and Pictionary are examples of team-building activities. These also improve employee satisfaction.
Related: 11 Employee Wellness Programs Ideas to Enhance Workplaces
Organizational Development Models
Organizational development is often described in terms of models, which are frameworks that describe the various ways in which an organisation can be developed. Organizational development models can be classified according to their purpose, their focus, or according to their approach. There are also many different ways of categorizing organisational development models, which are described below. Some of the most common ways of categorizing organisational development models are process-based, systems-based, and person-based.
The most common models of organisational development are the Six Thinking Hats, the Intervention Model, and the Learning Cycle Model. The Six Thinking Hats model is a framework for understanding how people think and how to engage them in the process of organisational development. The Intervention Model is a process for implementing organisational development interventions. The Learning Cycle Model is a framework for understanding how people learn and how to improve their learning in the process of organisational development.
The Six Thinking Hats model is a framework for understanding how people think and how to engage them in the process of organisational development. Organisational development models can be classified according to their purpose, their focus, or according to their approach. There are also many different ways of categorizing organisational development models, which are described below.
Process-based models of organisational development focus on identifying the problems organizations face and then they focus on developing the skills and knowledge of people to help them solve those problems. Process-based OD models are defined as the “old school” of organisational development. This means that the model is based on a traditional organizational structure and is focused on “fixing” the organization. This can be applied to “fixing” a system that is broken or that is not working.
Process-based OD models are the oldest and most basic. They are most often used when you have an established organizational structure and when you want to change the way the organization works. When an organization has an established structure, it is important to understand how the current structure works. Understanding how it works and how it could be changed is necessary to make that change.
Systems-based OD models are focused on understanding the system that an organization functions in, and on developing the skills and knowledge of people to help them work more effectively in that system. Systems-based OD models are defined as the “new school” of organisational development. This means that the model is focused on “fixing” an organization, rather than on “fixing” a broken or not working system. This can be applied to “fixing” an organization that works but could be improved.
The systems-based OD model is the most appropriate for “fixing” an organization that works but could be improved. The systems-based OD model is focused on understanding the system that an organisation functions in, and on developing the skills and knowledge of people to help them work more effectively in that system. This model of OD is different from the traditional “fixing” of an organization that is broken or that is not working.
Systems-based OD models are based on the premise that the organization is the system that the people are trying to change. The model is focused on determining the processes and people that are most important to the system, and how to improve those processes and people.
Related: Human Resources Models Every HR Practitioner Should Know
Effectiveness of OrganisatIonal Development Models
The effectiveness of OD models varies depending on what they are designed to achieve. Some of the most common purposes of OD models are: to identify problems in an organisation, to improve the processes and systems of an organisation, to improve the workforce of an organisation, to improve the output of an organisation, and to improve the culture of an organisation. It is important to note that the effectiveness of an OD model depends on the model’s purpose.
The effectiveness of OD models can be measured in a variety of ways. One way is to measure the change that has happened as a result of the development interventions that have been implemented. This can be done by measuring the change that has happened in the outputs of the organization. This is more commonly used when the focus of the model is on improving the outputs of the organisation.
Related: Organizational design - What you need to know
Challenges to Organisational Development and Change
Organizational change and development can be difficult to navigate. It's natural for people to resist change when they grow accustomed to their routines. Instead of implementing huge changes all at once, leadership can seek a cautious, incremental rollout to reduce resistance. Companies should recruit leadership professionals to accomplish high-level changes since the difference is often tough to navigate. Employees are considerably less likely to reject the change if they have a clear grasp of what's going on and why it's happening. Effective management can help to steer the process and provide clarity to team members.
The following are some of the most common issues that occur with organizational development:
Conflicting goals
Leaders don't always agree on what the company's ultimate aims should be. This conflict frequently involves economics and resource allocation, and it is occasionally caused by a breakdown in communication between managerial branches. These difficulties can be addressed in advance by establishing clear communication routes.
Fear of the unknown
Some employees are afraid to implement new plans because they’re afraid of failure or reluctant to enter uncharted territory. They may be cynical about change if past initiatives fail, or they may think the organization is fine as it is. Employees may directly express this fear by complaining about new initiatives or passively by neglecting their part in the process, for example, by arriving late to key process improvement meetings.
Burnout
Change may be difficult, and if sufficient support isn't provided, employees may feel burnout. To minimize employee burnout, organizations should ask themselves, "Is this realistic?" at every stage of the process, and make sure that employees have a healthy work-life balance.
Lack of leadership
When key executives depart an organization, the remaining employees are forced to hustle to fill the voids. Furthermore, existing leadership may be lacking in effective communication and team-building abilities. Each scenario increases the difficulty of organizational change.
Difficulty changing the mission or values
Some employees may believe that the company's mission does not align with the new objectives during times of change. This could lead to an aversion to change.
Related: 13 Reasons Why Performance Appraisal Fail
Conclusion
Organisational development is a process that involves changing the way that an organisation functions to improve the way that it works. Organisational development is used to improve the processes and systems of an organisation, improve the workforce of an organisation, improve the output of an organisation, and improve the culture of an organisation. Organisational development is a changing process, and as such, the effectiveness of an organisational development model depends on the model’s purpose.
