What Is Organizational Development?

• Organizational development is a planned, systematic

change in the values or operations of employees to
create overall growth in a company or organization. It
differs from everyday operations and workflow
improvements in that it follows a specific protocol that
management communicates clearly to all employees.

• Organizational change and development can be a

long, sometimes overwhelming process, but
companies usually begin with several goals in mind:
 Goals of Organisational Development

• Ongoing improvement. Changing company culture to view new strategies as a

positive growth opportunity allows for ongoing improvement and encourages
employees to become more open to change and new ideas. New strategies are
introduced systematically through planning, implementation, evaluation,
improvement, and monitoring.
• Better or increased communication. Organizational development that leads to
increased feedback and interaction in the organization aligns employees with the
company’s vision. Employees feel that they have more ownership in the
company’s mission and may be more motivated as a result.
• Employee development. In today’s business world, employees must constantly
adapt to changing products, platforms, and environments. Employee
development comprises training and work process improvements that help
everyone keep up with shifting demands.
• Product and service improvement. Organizational development leads to
innovation, which can help improve products and services. This innovation often
comes as the result of intensive market research and analysis.
• Increased profit. Organizational development helps increase profits by optimizing
communication, employee processes, and products or services. Each serves to
increase a company’s bottom line.
 The Process of Organizational Development
The organizational development process is a systematic, research-based series of
steps. Common implementation steps include the following:
• Identifying an area of improvement. Organizational change begins with identifying
a need that aligns with business goals. Companies often know that need right away,
but they may consider a data-driven approach to identify problems through formal
surveys and feedback. This approach allows for a more thorough understanding of
the area for improvement. Companies should ask themselves what they want to
change, and why that change is necessary. The use of diagnostic tools such as
PESTLE Analysis for strategic planning or conducting a SWOT Analysis can help to
make the process robust and objective.
• Investigating the problem. Once the area for improvement is identified, companies
conduct an investigation to learn why the problem exists, what the barriers to
improvement are, and what solutions have previously been attempted. This step can
also include surveys or focus groups and individual consultations.
• Creating an action plan. The company then creates a plan with allocated resources
and clearly defined employee roles. This plan will include specific support for
individuals involved and identify a measurable goal. During this step, companies
should think about how they’ll communicate changes to staff and manage feedback.
• Creating motivation and a vision. Once the company has clearly defined and
communicated a plan, its leaders must motivate their employees to share in a
vision. This step involves leaders acting as enthusiastic role models while
helping employees understand the plan’s big-picture goals and desired impact.
• Implementing. While stability is necessary during implementation, supporting
employees during the transition with mentoring, training, and coaching is
equally important. When thinking about such support, management should
consider what new skills employees will need and what delivery methods will
be most effective. Ongoing feedback and communication can help make the
change process easier.
• Evaluating initial results. Once the company has implemented a plan, its
leaders may create space for shared reflection, asking themselves and their
employees if the change effectively met the business goals. They’ll also
evaluate the change management process and consider what could be done
differently. This step can’t be overlooked; if the company doesn’t evaluate the
changes, it won’t know whether interventions have been effective.
• Adapting or continuing. Depending on the evaluation of the initial results, the
company may choose to adapt its plan. If the results show success, it may
continue with the current plan to keep improving.
Challenges to Organizational Change and Development

• Organizational change and development can present some

impediments to success. Resistance to change is normal, as
people become set in their ways. To minimize resistance,
leadership should consider a slow, incremental rollout
rather than making massive changes all at once. Since
change is often difficult to navigate, companies should hire
leadership experts to execute high-level changes. Education
and communication are vital in implementing change;
employees are much less likely to resist if they have a clear
understanding of what’s happening and why. Effective
management can guide the process and offer team
members clarity.
 Common challenges that come with organizational development processes
include the following:
• 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 failed, 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.
• Conflicting goals. Sometimes, leaders disagree about a company’s ultimate goals. This
conflict often pertains to finances and allocation of resources, sometimes stemming from
poor communication between management branches. These issues can be handled
proactively by instituting clear communication channels before beginning new initiatives.
• Burnout. Change can be exhausting, and employees may experience burnout if proper
supports are lacking. To avoid employee burnout, companies should keep the question “Is
this realistic?” at the forefront of all steps of the process and ensure that employees are
maintaining an appropriate work-life balance.
• Lack of leadership. Key leaders may leave an organization, forcing the remaining
employees to scramble to fill the gaps. Additionally, current leadership may lack effective
communication or teambuilding skills. Each scenario can make organizational change more
difficult.
• Lack of understanding of planned
changes. Employees expect well-planned and
predictable changes, so when surprises or missteps
occur, they can lose faith in the process. Creating a
timetable for the changes and clearly articulating
the problems that may occur can help avoid these
issues.
• Difficulty changing the mission or values. During
periods of change, some employees may feel that
the company’s mission doesn’t align with the new
initiatives. This may cause resistance to change.
What is an organizational development specialist?

• An organizational development specialist is often referred to

as Head of Talent because they are dedicated to supporting
and developing the growth and effectiveness of an
organization through its people.
• An organizational development specialist is generally
considered a mid-to-senior level role and will report to a
director or senior manager. They usually have several years
of experience in areas such as human resources,
organizational development, or business management, as
well as a relevant degree in a field such as organizational
psychology, organizational development, or industrial
psychology.
• The responsibilities of an organizational development
specialist include conducting organizational assessments,
developing and implementing strategies, facilitating
change management, supporting leadership
development, analyzing data and making
recommendations, and collaborating with other
departments.

• organizational development specialists coordinate

employee training and development programs, facilitate
team-building activities, introduce new technology
systems, and work closely with company leaders and
stakeholders to align the organization’s goals with its
operations.
 What does an organizational development specialist do?

1. Conducting organizational assessments

This includes an organization’s current structure, culture, systems, and
processes and involves reviewing data, conducting surveys and interviews with
stakeholders, and analyzing results to identify areas for improvement.
2. Developing and implementing strategies
Based on the results of the assessment, the organizational development
specialist is responsible for developing and implementing strategies to improve
the organization’s performance, efficiency, and effectiveness. This may involve
designing and implementing new policies and procedures, identifying training
needs, developing leadership programs, or redesigning the organizational
structure.
3. Facilitating change management
One of the most important roles of an organizational development specialist is
to facilitate change management within the organization. This involves
communicating the need for change, providing guidance and support to
employees and management during the change process, and ensuring that the
changes are successfully implemented.
4. Supporting leadership development
Mentoring, coaching, and training programs will typically be
developed and implemented to help employees develop their
skills and prepare for future leadership roles.
5. Analyzing data and making recommendations
Organizational development specialists should regularly analyze
data, identify trends, and make recommendations for
improvement to the organization’s leadership team. They also
provide ongoing monitoring and evaluation of the effectiveness
of the changes already implemented and recommend
adjustments as needed.
6. Collaborating with other departments
Organizational development specialists work collaboratively with
other departments within the organization, such as HR, Finance,
and Operations to ensure that their initiatives align with the
overall mission and goals of the organization.
Roles and responsibilities of OD professionals

The role:
• Conducting organizational assessments to identify areas where the
organization could improve its performance, culture, or structure.
• Developing and implementing training programs to enhance
employee skills and knowledge.
• Facilitating change management efforts, including communications
and training.
• Designing and implementing performance management programs
to ensure that employees are meeting performance standards and
goals.
• Coaching managers and employees on leadership and teamwork.
• Analyzing data and creating reports to identify
trends and opportunities for improvement.
• Collaborating with other departments to
ensure that the organization is aligned with its
mission and goals.
• Promote a culture of continuous improvement
within the organization and help it adapt to
changes in the market and industry.
Key responsibilities:
• Assessing the development needs of all operational,
business, and functional units, as well as evaluating
and overseeing the implementation of
organizational development strategies and
processes.
• Leading the design, development and
implementation of programs, policies and strategies
customized to fulfill organizational development
needs and achieve program objectives.
• Measuring the achievement of established goals.
• Supporting individual development planning for
executives and emerging leaders.
• Offering comprehensive consultation services to employees at all levels
around policies, procedures, conflict resolution, problem-solving,
compliance, and litigation prevention.
• Consulting with management on performance, organizational and
leadership matters.
• Managing performance appraisal and feedback programs and coaching
managers on the performance review process and the appropriate
feedback, language and documentation they should use.
• Recommending and implementing policies and procedures based on a
thorough knowledge of local employment and benefit laws.
• Assessing and collaborating with management to address interpersonal
and work-related issues, and consulting with supervisors and managers to
identify suitable mediation approaches, such as coaching, skills training, or
intervention.
• Ensuring effective and legally compliant plans to address employee
performance issues and to implement performance improvement plans.
• Collecting and evaluating input from all organizational levels regarding
noteworthy accomplishments, areas for advancement, highlights, and
concerns.
 Components of organisational
development
• Organizational Development (OD) is a planned and
systematic process of change that aims to improve the
overall effectiveness and health of an organization. It
involves a variety of components, strategies, and
interventions to enhance organizational performance and
well-being.
• Organizational Development (OD) professionals play a
crucial role in helping organizations improve their overall
effectiveness, adapt to change, and foster a positive work
environment. The role of an OD professional is multifaceted
and involves various responsibilities. Here are key aspects of
their role:
 Here are some key components of
organizational development
• Assessment and Diagnosis:
– Conducting a thorough analysis of the current state of the
organization.
– Identifying strengths, weaknesses, opportunities, and
threats (SWOT analysis).
– Diagnosing organizational issues and areas that need
improvement.
• Strategic Planning:
– Developing a clear vision and mission for the organization.
– Setting strategic goals and objectives.
– Creating action plans to achieve organizational objectives.
• Change Management:
– Managing the process of change within the
organization.
– Addressing resistance to change.
– Communicating effectively about the reasons for
change.
• Leadership Development:
– Identifying and developing leadership skills at all levels.
– Building a leadership pipeline.
– Fostering a culture of leadership and accountability.
• Employee Involvement and Empowerment:
– Encouraging employee participation in decision-making
processes.
– Empowering employees to take ownership of their work and
contribute to organizational success.
– Establishing mechanisms for feedback and continuous
improvement.
• Team Building:
– Enhancing teamwork and collaboration among employees.
– Facilitating team-building activities and workshops.
– Improving communication and interpersonal skills within teams.
• Training and Development:
– Providing ongoing training and development
opportunities for employees.
– Addressing skill gaps and promoting continuous learning.
– Aligning training programs with organizational goals.
• Organizational Culture:
– Assessing and shaping the organizational culture.
– Promoting values and behaviors that align with the
desired culture.
– Addressing cultural barriers to change.
• Communication Strategies:
– Developing effective communication plans.
– Ensuring transparent and open communication
channels.
– Managing information flow during times of change.
• Performance Management:
– Establishing clear performance expectations.
– Implementing performance appraisal systems.
– Providing feedback and recognition for performance.
• Organizational Structure:
– Evaluating and, if necessary, restructuring the
organizational design.
– Ensuring that the structure supports the overall strategy
and objectives.
• Technology and Innovation:
– Embracing technological advancements to improve
efficiency.
– Encouraging innovation and creativity within the
organization.
– Aligning technology with organizational goals.
• Quality Improvement:
– Implementing processes for continuous improvement.
– Focusing on quality management and assurance.
– Using tools such as Six Sigma or Total Quality
Management (TQM).
• These components work together to create a
holistic approach to organizational development,
facilitating positive and sustainable change within
the organization. It's important to note that the
specific components and strategies may vary
based on the organization's unique needs and
context.
 OD program phases
There are five stages of organizational development
1. Entering and contracting (Making an entry)
The initial stage of OD occurs when an organization recognizes an issue that
needs improvement. Examples of such issues include:
• A pattern of similar customer complaints.
• External factors that impact the organization.
• Increasing employee turnover or absenteeism.
• Losing competitive edge from declining innovation.
• Reduced revenue or profits.
• After identifying the problem, a meeting is initiated between the
leader/manager (“client’) you will be working with to establish a
collaborative relationship. During this step, you will present and explore the
problem and determine an overall assessment of the situation. Then you
can determine the expectations and scope of the project.
2. Diagnosing (Developing contract)
• During this phase of the process, you will gather and organize
the pertinent data to analyze the underlying situation and
determine what steps you should take. You must first
understand the current climate of the organization and how
the system is working before you can have a clear basis to
design the interventions that can solve the problem. This
investigation involves collaboration with stakeholders.
• Once your diagnosis is established, you will need to
communicate it to your client/stakeholders. You don’t want
to overwhelm your audience with too much information to
wade through. Summarize the feedback to reduce the time
you need to hold their attention. Be sure to include the
insights that will motivate them to endorse the change that
needs to happen.
3. Intervening and taking action (Launch)
• Now that you have investigated the situation and
communicated your findings to your client, it’s time to
move into the strategic planning stage. You will transform
the diagnosis into an action plan with detailed steps and
intervention measures for implementing the change that
needs to take place.
• Interventions are planned actions or events that
intentionally disrupt the usual way of doing things to
promote positive change. A variety of these techniques are
available, depending on the needs of the organization.
• Examples of OD interventions include
organizational (structural) design,
performance management, wellness interventions,
transorganizational change.
The Reddy’s Cube method classifies interventions in three dimensions:
• The focus of the intervention (individual, interpersonal, group).
• The level of intensity (low, medium, high).
• The type of intervention (cognitive, skill and activity, behavior,
emotional/reflective, interpretive).

Here is an overview of the types of interventions stipulated under

Reddy’s Cube.
• Cognitive – An increasing knowledge brings better understanding.
• Skill and activity – Growing in the ability to do something.
• Behavior – Making changes to current conduct.
• Emotional/reflective – Bringing forward underlying emotions and
using them for reflection.
• Interpretive – Replacing the usual way of doing or thinking about
things with a paradigm shift.
4. Evaluating and feedback (Situational
evaluation)
• Your OD process will need careful monitoring.
When the plan has been put in motion, it’s
time to move into the next phase of
evaluation and feedback. At this time, you will
analyze whether the interventions have
delivered the desired outcomes. Did the
required change take place? Evaluate which
actions or interventions need adjustments or
should continue.
 Kirkpatrick’s Four Levels of Evaluation is a model used in Learning &
Development that is also helpful for appraising OD interventions.
Each of the four levels represents a measure for effectiveness:
• Reaction – The people within the system share how they receive
the intervention or activity. Experience surveys are one way to
gather employee’s perceptions.
• Learning – What have employees learned? Do they have new
awareness, insights, experiences, or skills because of the
intervention?
• Behavior – This level indicates how well the intervention was
applied by any changes made in thinking, being, and doing. You can
use self-assessments or 360-degree feedback to gauge this.
• Results – These are the final outcomes of the interventions. What
impact have they had on either the organization’s bottom line or
on employees, shareholders, or customers?
5. Termination/exit (Closure)
• The change that has taken place is now incorporated into normal
operations, and you have reached the culmination of the OD
process. Finish up with a plan for efficiency standards that ensure
the transformation is sustainable. A method for ongoing monitoring
will help ensure that the implemented changes remain intact.
• We need to handle the exit properly to maintain employee trust,
productivity, and engagement. Show your support for people in the
organization by creating an environment that makes them feel safe.
• Allow people to express their feelings about the change and feel
safe doing so by practicing empathetic listening.
• Acknowledge that grief and frustration are understandable
reactions to change.
• Cultivate confidential settings that allow people to express
themselves without suffering repercussions.