Organizational development is a planned and systematic change in the values or operations of employees to create overall growth in a company or organization. It is an effort that is planned at the organizational level and starts from the top of the organizational hierarchy in order to improve the effectiveness of the organization through planned interventions in organizational processes. By understanding a simple three-stage model of organizational growth, organizations can design themselves to move from chaos to high performance. The three basic components of organizational development are organizational climate, organizational culture, organizational structure, and organizational strategy.
These components are essential for creating an environment that encourages growth and development. Organizational climate is characterized by predictability and control. Structure, routine, policies, etc., are all designed to ensure an efficient daily operation. People in this climate tend to be obedient and expect justice.
Compliance is the watchword, and people are rewarded for compliance rather than risk-taking and innovation. The purpose of the organization is subordinate to its efficiency. Organizational culture is based on a unique and solid culture, derived from a clear set of values expressed and reinforced by its leaders. These values allow us to focus on what is important and, at the same time, allow for flexibility and innovation.
The organization's processes, systems, and structure are designed to be aligned or in harmony with the organization's values. Organizational structure focuses on customer service rather than formal organizational structure. The organization's mission, rather than rules and policies, guides day-to-day decision-making. An organization of this type is based on a unique and solid culture, derived from a clear set of values expressed and reinforced by its leaders. Organizational strategy adopts a long-term point of view.
The development of people is considered a primary management task. There is trust and cooperation between the members of the organization. People don't blame or attack others because doing so isn't in their best interest. Organizational development works to improve organizations and balance a company's strengths and weaknesses, which is extremely imperative and should not be overlooked. It systematizes every step of the process, making it easier for companies of all sizes and sectors to improve.
The impact of organizational development interventions on company performance has been studied and the article proposes performance metrics for organizational development. Realizing high performance through systematic change requires commitment and hard work. However, for those who want to eliminate waste, improve quality, and provide better customer service, there are powerful initiatives that can lead to a foundation of organizational stability and ultimately lead to high performance.