Organizational development, also known as OD, has a number of

meanings. It may refer to a planned and systematic approach to

improving the effectiveness of a company, government
department or any organization – one that aligns strategy,
individuals and processes. It includes the practice of planned,
systematic change in the values, attitudes and beliefs of a
company’s employees through the creation and reinforcement of
medium- or long-term training programs.

A growing field of Human Resource Management, organizational

development is the study of successful organizational
performance and change. The subject emerged in the 1930s from
human relations studies, during which psychologists became
aware that organizational structures and processes influence the
motivation and behavior of the workforce.

OD today also encompasses the aligning of organizations with

their complex and rapidly changing environments through
organizational learning, knowledge management and adapting
organizational values and norms.

organizational_development
The Organizational Development consultant may be an internal
employee or somebody who is contracted externally. The
consultant process has an entry stage (image above). Data
Gathering is the most important step of the process.
Organizational development: an ongoing process
Organizational development is an ongoing process of
implementing effective change in how an organization operates.

It is known as both a field of scientific study and inquiry and a

field of science that focuses on understanding and managing the
systematic changes of organizations.

The Australian Human Resources Institute (AHRI) says the

following regarding Organizational Development and its
definition:

“Whilst there is no single definition of organizational

development (OD), it is commonly known to be the practice of
changing people and organizations for positive growth.”

Organizational Development Circle

OD is a practice to help companies build the capacity to change
and accomplish greater effectiveness. According to Western
Washington University: “The leadership team, based on assessed
needs to solve operational problems or to improve organizational
effectiveness, usually initiates OD. Involving employees through
bottom-up inputs is enabling to complete OD diagnoses from
various angles and levels of point of views.” (Image: adapted from
wp.wwu.edu)
AHRI lists the following as typical OD activities:
– career development
– change management
– coaching
– e-learning
– innovation
– leadership development
– organizational assessments
– talent management
– team building
– training
Key concepts of Organizational Development theory include:

– Organizational Culture: deeply-seated values, norms and

behaviors that employees or members have.

– Organizational Strategies: how a company or any organization

identifies issues, puts plans into actions, negotiates changes, and
assesses progress.
– Organization Climate: an organization’s unique ‘personality’ or
mood, which includes the beliefs and attitudes that influence the
collective behavior of the workforce or members.

Organizational development means taking action

Organizational development is action-oriented. It starts with a
careful analysis of the whole organization, focusing on its current
situation and future requirements, and then employs behavioral
science techniques including transactional analysis, sensitivity
training and behavior modelling.

The aim is to help the organization adapt more successfully to the

rapidly-changing, complex environment of the marketplace with
all its new regulations, rivals, fast-changing consumer preferences
and lifestyles, and technologies.

Benefits of Organizational Development

It empowers leaders and employees, and creates a culture of
ongoing improvement and alignment around common goals.

OD makes it possible for organizations to change and adapt more

easily and quickly. Which in today’s marketplace is not only an
advantage – it is a basic requirement for survival.
Apart from giving the workforce something to focus on – putting
them to work – it improves the quality and speed of decisions.

With organizational development, conflicts become constructive

rather than destructive. It gives the leaders of commercial
enterprises more control over results, by providing the workforce
with more control over how it does its job.

Outcomes from Organizational Development

Companies are better able to either make a profit or boost their
profits for many reasons, including cost effectiveness, a better
understanding of consumer preferences, and adopting more
productive working methods.

There tends to be more innovation, better products and quality of

services, and considerably greater customer satisfaction.

Employees, their supervisors and upper management enjoy a

better work environment, and in most cases a healthier work-
personal life balance.

The organization becomes better able to adapt to a rapidly-

changing market. The adaptations and changes are ongoing
because the marketplace never stays the same for long.
What is an organization? An organization is an organized group of
people who work together – they have a common goal.

By: https://marketbusinessnews.com/financial-glossary/organizational-development-definition-
meaning/