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The Importance of Organizational Development

Organizational DevelopmentWhat Is Organizational Development?

Organizational Development is the process that brings together knowledge and practice within an organization, thereby allowing it to become far more effective. This increased effectiveness constitutes such things as higher productivity and a better work-life balance. The integrated approach we know as organizational development today started in the 1950s and 60s. Professionals started to apply behavioral science at all levels of the organization, working not just on groups and inter-groups, but also on the organization as a whole, as well as individuals. This allowed them to better plan change and implement it as well. It is believed that the most determining factor in organizational development is behavior.

“Andrew Ure incorporated human factors into his work, The Philosophy of Manufactures (1835). Ure, like a lot of others, recognized the mechanical and commercial parts of manufacturing, but he also added a third – the human factor. It took quite a while for this “human factor” to become accepted. In addition, it often turned into paternalistic, do-good approach, rather than genuine recognition of the importance of workers.”
Organizational Development

The Importance of Organizational Development for Growth

An organizational development department is not only trying to implement change but also seeks to determine what the current strong points are and where changes may be necessary. This is an ongoing process that is continuously being reviewed and worked on again and again. Often, the organizational development department will ask individual departments to create a rolling plan of what they need to achieve and how they want to go there. In doing this, they are able to help the organization to achieve growth.

“Organizational development is an important tool in managing and planning corporate growth. An organizational development analysis brings together sales projections and consumer demand to help determine the rate of company growth. This information is used to alter the company business plan and plan the expansion and use of company resources such as personnel and the distribution network to accommodate future growth.”
The Importance of Organizational Development by Arnold Anderson, Demand Media

Achieving Company Goals

Organizational development is a planned effort to increase a company’s effectiveness in order to achieve their goals. However, as the world changes, it seems that more and more people are being expected to do more for the same – or sometimes even less – amount of money. Unfortunately, the global recession is making companies feel the squeeze more and more. Because of this, the role of organizational development is to provide the right kind of motivation to help people understand that they are doing something for the company.

“There is an increasing trend to maximize an organization’s investment in its employees. Jobs that previously required physical dexterity now require more mental effort. Organizations need to “work smarter” and apply creative ideas. The work force has also changed. Employees expect more from a day’s work than simply a day’s pay. They want challenge, recognition, a sense of accomplishment, worthwhile tasks and meaningful relationships with their managers and co-workers. When these needs are not met, performance declines.”
Why Is Organizational Development Important

This also clearly demonstrates how varied the role of organizational development actually is.

The Coaching Role

Many people have compared working in a company to participating in a marathon. Each individual person who takes part in the marathon has to be trained to be able to last the course. This means that they have to receive the right nutrition and the right coaching. That is what organizational development does. As much as completing a marathon is a credit to the individual athlete, it is just as much a testament to the trainer. Hence, someone in the organizational development department is as much as a mentor or coach as they are a workforce professional.

“The role of OD is to ‘coach’ the organization so that it is capable of achieving its strategic goals. This involves providing the broad planning and implementation of internal change so that the organization can achieve its strategic goals. In other words, the role of OD is to help the organization develop its internal capacity such that there is alignment with its strategic ambition.”
Understanding OD and Its Role: A Think Piece on Organisation Development by Christian Chao, Alexia Lee and Geraldine Ling

The Role of Organizational Behavior

Organizational behavior as well as organizational development are factors that will help drive a company’s business operations toward success. Organizational behavior are the actions of men and women within a business and ways in which they interact with each other. Organizational development exemplifies team development, individual assessment, professional development, and change management affecting an organization. Organizational behavior and development connect with each other due to the fact that individual decisions could help or hurt a company’s advancement. Whenever team members do not buy into a company’s development process, unhealthy progress will occur in the organization.

Owners of a business frequently establishes the personality within the organization. Ultimately, the owner’s personality and style transforms into the business’ organizational behavior. As an example, if the owner is dishonest and emphasizes exclusively on profits, the organization will likely participate in similar organizational behavior and development. An organization is not necessarily tied to its primary personality as established by the particular owner. Owners might retain management to operate the business or sell the business, which can cause a modification of personality or modification in the company’s behavior and development.

“Organizational behavior studies the impact individuals, groups, and structures have on human behavior within organizations. It is an interdisciplinary field that includes sociology, psychology, communication, and management. Organizational behavior complements organizational theory, which focuses on organizational and intra-organizational topics, and complements human resource studies, which is more focused on everyday business practices.”
What is Organizational Behavior?

About 

Co-owner/Co-founder of Intesi! Resources. Educated as an architect I transitioned to technology during my career in architecture. Intesi! Resources was founded in 2002 and my focus is everything Web/eCommerce related from the design and development of our site to all the marketing activities involved. I also provide significant support for our clients on all our products and how they are used to deliver assessment-driven learning solutions that develop self-awareness and interpersonal skills.

This entry was posted in Organizational Development and tagged on by .

About Steve Giles

Co-owner/Co-founder of Intesi! Resources. Educated as an architect I transitioned to technology during my career in architecture. Intesi! Resources was founded in 2002 and my focus is everything Web/eCommerce related from the design and development of our site to all the marketing activities involved. I also provide significant support for our clients on all our products and how they are used to deliver assessment-driven learning solutions that develop self-awareness and interpersonal skills.

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