Show
In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, businesses undergo regular change, creating a need for continuous organizational development (OD). The main goal of OD is to increase the efficiency and effectiveness of an organization. An example of this is tech giant Amazon, which has gained a competitive edge by investing in organizational development. It plans to invest $700 million in OD and retrain a third of its workforce by 2025, helping its workers transition into new, advanced roles by adapting to new technologies, working conditions, business procedures, and overall digital transformation. There is a high chance that you are already investing in organizational development without a long-term strategy. This guide will help you understand the goals & phases of OD, and how you can leverage it for your growth. What Is Organizational Development?Organizational development is an evidence-based scientific approach to help organizations become effective and adaptive to change by developing, improving, and reinforcing strategies, structures, and processes. Since OD aims at organizational effectiveness, the variable outcomes can include financial performance, employee engagement, customer satisfaction, and overall change management. However, a noteworthy aspect here would be that though both OD and HRM (human resource management) are people-centric processes and often used synonymously, they are actually different. Difference Between Organizational Development & Human Resource ManagementOrganizational development is more holistic and strategic, whereas HR is operational and can be considered a subset of OD. If HR initiatives focus on people practices, OD interventions consider multiple inputs and tools that cut across the breadth and depth of the organization. For example, the implementation of a performance management system can be categorized as an HR activity. But, to consider it as organizational development, it needs to be aligned with other functions in an ordered and comprehensive way. Here, the HR department can play a vital role in reducing an organization’s resistance to change by explaining the need for a performance management system, its benefits to employees/company, and asking for feedback and input on implementing such a system. Therefore HR has a vital role in organizational development, but unlike HR, OD often brings about a behavior change in the organization. What Are the Goals for Organizational Development?Here are a few of the most important goals for organizational development: 1. Improve Productivity & Efficiency Across the Organization85% of employees are disengaged at their workplace, costing $7 trillion in lost productivity, according to Gallup’s State of the Local Workplace. However, the organizational development process focuses on making the workforce more efficient and productive by equipping them with the required skills to succeed in constantly changing markets. OD also improves communication within the team to align employees with the company’s vision. Once employees feel empowered, they are motivated to give their best and are willing to take more ownership of their work. 2. Create a Culture that Embraces Change & InnovationOrganizational development leverages competitive analysis, market research, and consumer behavior to create innovative products and services. It positively impacts the organizational culture by creating a continuous improvement cycle through special committees and new business processes. Strategies are implemented and assessed for results and quality, thereby helping employees embrace change without any barriers. For instance, Google fosters a culture of ongoing learning through organizational development. New employees are aware that they need to learn continuously to keep pace with changing business dynamics and grow professionally. How Organizations Can Use Brain Science to Lead Successful Change Management Initiatives featuring Dr. Britt Andreatta 3. Higher Profit MarginsNew development initiatives streamline organizational processes, as well as increase employee productivity and product innovation. The operational costs further decrease due to a lower employee turnover rate, resulting in substantial profit margins. The 5 Phases of the Organizational Development ProcessOrganizational development is a complex and systematic process. OD practitioners implement the development initiatives in five phases: 1. EntryThe entry stage represents the first interaction between the consultant and a client to assess the situation & identify the problem. A data-driven approach results in a more profound understanding of the areas of improvement for an organization. This phase finally results in an engagement via a contract or a project plan to lay the ground expectations about the project scope for the organizational development process 2. DiagnosisThis phase deals with the problem investigation via a collaborative data gathering process between an organization’s stakeholders and the consultant to discuss the root cause of the problem, barriers, and the previously implemented solutions. 3. FeedbackThe client receives the analyzed information via the consultant at this stage. The feedback phase also includes a review of preliminary agreements on the project scope and resources resulting in an action plan that outlines the change solutions to be developed and defined success indicators based on the information and data analysis. 4. SolutionThis stage represents the development and implementation of solutions to rectify the problems identified in the first stage. The solution can include a risk management plan, communication plan, change management plan, & a training plan. 5. EvaluationPost the implementation phase, the change outcome is assessed to determine whether the initiative meets the goal. In case of a change failure, the organization looks for the cause and makes adjustments to eliminate the obstacle. An OD practitioner can also include small pilot tests in this phase before the organization-wide rollout of the development initiative. Examples of Organizational Development InterventionsGiven the complexity of development initiatives, they often require external interventions for successful change implementation. Organizational development interventions are structured processes that help companies meet specific objectives, enable management, and improve overall organizational functioning. Typically, you can classify OD interventions as:
Human Process InterventionsHuman process interventions are some of the earliest & most effective OD interventions related to interpersonal relations, group, and organizational dynamics.
Technostructural InterventionsThese programs are related to the organizational structure and technological changes. They are highly relevant due to the changing business dynamics. These programs are related to the organizational structure and technological changes. They are highly relevant due to the changing business dynamics.
HRM InterventionsThese interventions are mainly related to employee engagement, experience, and performance management.
Strategic Change InterventionsOrganizational development interventions play a crucial role in successfully implementing changes that require a behavioral change in the organization.
With organizational development becoming necessary for organizational effectiveness and growth, it’s imperative to leverage human resources to manage change effectively. You need to humanize change management by improving change communication and paving the way for digital innovation. Schedule a demo with our experts to discover how Whatfix can assist you in rolling out change effortlessly.
Priyanka Malik Priyanka is a Marketing Professional with over four years of experience in different facets of Marketing. She is passionate about content creation and spends her time writing and strategizing content at Whatfix. With her curiosity-driven nature about customer behavior and technology, she is keen on helping Enterprises accelerate Digital adoption with Whatfix. Drop-in your comments below or reach out to her at [email protected] Subscribe to get new content delivered directly to your inbox. What are the techniques of organizational change?8 steps to implement organizational change. Identify the change and perform an impact assessment. ... . Develop a plan. ... . Communicate the change to employees. ... . Provide reasons for the change. ... . Seek employee feedback. ... . Launch the change. ... . Monitor the change. ... . Evaluate the change.. What are the techniques for promoting change?8 Methods Of Implementing Change In an Organization – Discussed!. (i) By transformational leaderships: ... . (ii) By use of group forces: ... . (iii) By providing a rationale for change: ... . (iv) By participation: ... . (v) By sharing rewards: ... . (vi) By ensuring employee security: ... . (vii) By communication and education:. What are the 4 types of organisational change?What are the four types of organizational change?. Strategic Transformational Change.. Structural Change.. Remedial Change.. People-Centric Organizational Change.. What are the 3 most common types of organizational change?Let's take a look at the most common organizational change types and examine a few cases of companies that have emerged from change stronger than ever.. Adaptive Change.. Internal Transitions.. Transformational Change.. The Secret to Successful Change Management.. |