Precisely Simply Exactly Just What Majors Generally Lead To A Business Intelligence Specialist – You may have heard of organizational development (OD). But what exactly is it? In this comprehensive guide, we’ll take a look at organizational development, its goals, examples of OD, and the OD process. By the end of this guide, you will have a solid understanding of organizational development.
Want to dive deeper into this topic and find out how you can turn your organization’s culture into your most powerful business asset? Check out our full guide to Cultural Transformation here.
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Organizational development is a critical and science-based process that helps organizations build capacity to change and achieve greater effectiveness by developing, improving, and strengthening strategies, structures, and processes.
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Organizational design becomes more important over time. Today’s world is characterized by Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). This VUCA world requires new agility from organizations, and organizational development is a means to that end.
In organizational development, the main stakeholders are internal and external to the company. Management and employees are internal stakeholders. External stakeholders include customers, investors, suppliers, communities and governments.
In addition, IT is redefining the way traditional business models work, creating innovative companies with the ability to scale their services to a global audience within a few years. Just one year after its launch, Facebook reached one million users. A few years later, Snapchat reached 10 million active users in its first year. This makes the incumbents to the noise.
Finally, business systems are becoming better at measuring relevant data, changing the way success is measured. Additionally, advanced people analytics can help improve organizational results.
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We have briefly touched upon the objectives of organizational development. These goals vary among organizations. In corporate companies, increasing profits can be a major problem. In charity, cultural values are very important. And in healthcare, adaptation is essential to maintain good functioning.
Competitiveness is the idea that every organization has unique resources and competencies that help the company win in the market. These can be people (business leaders like Elon Musk, or the Google team), innovative products (SpaceX), superior service (Four Seasons Hotels), or culture (Zappos). It can also be how reactive the organization is to changing market demands. If you are the first person to take advantage of an opportunity, for example, it can increase your income for the next five years.
The purpose of OD is to develop these aspects, because they can help businesses win in the market.
This means that organizational development is different from incidental change processes. OD focuses on building the organization’s ability to assess its current functioning and tweak it to achieve its goals. Therefore, the process is a continuous process, while the process of change is often temporary.
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This also emphasizes the relevance of OD. In this VUCA world, change is a constant factor. OD is an integral approach to ensure this constant change.
Complex organizational development. This is a technical field, and also an intervention. Using the work of Cummings and Worley (2009) as a basis, in this section, we will go through 18 organizational development interventions. This list is far from complete. The goal is to help you understand this broad topic, and understand how OD relates to the core HR function.
Typically, the classification of OD interventions will include human process interventions, technostructural interventions, HRM interventions, and strategic change interventions. Human Process Intervention
Human process intervention is a program of change related to interpersonal relationships, groups, and organizational dynamics. These are some of the earliest and best known OD interventions.
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1. Individual intervention. These interventions are targeted at individuals, often aiming to improve communication with others. Employees are trained on counterproductive interpersonal behaviors.
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2. Group intervention. The intervention is aimed at the content, structure, or process of the group. Content that is the focus of the group. Structure is how the group is designed to act on the content. A process is the way a group performs its core tasks. For example, a contact center focuses on taking complaints from customers. Contact centers have a hierarchical structure with directors, managers, and customer service staff. The contact center process is to record quickly, all complaints. Only a certain percentage is raised to management depending on how serious and complex the complaint is.
3. Third party intervention. Third-party intervention is often used when conflicts arise. Not all conflicts are bad, but bad conflicts need to be resolved quickly. Third-party intervention helps control and resolve these conflicts. Often, the third party is an OD consultant.
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4. Team building. Team building is the most prominent OD intervention. It refers to activities that help the group improve the way it accomplishes tasks. Examples of team building activities are volunteering, team sports, and Pictionary.
5. Organizational confrontation meeting. Confrontation meetings aim to identify problems and targets for improvement, and set priorities. This is the starting point for addressing the identified issues, within your organization.
6. Intergroup relations intervention. Intergroup interventions are aimed at diagnosing and understanding relationships within groups. In addition, problems are identified and priorities and improvement targets are set, before working on the identified problems.
7. Large group intervention. The intervention is somewhat in the middle, from confrontation and intergroup intervention. It aims to bring together many members of the organization and other stakeholders. Internal and external stakeholders work together. Large group interventions can solve problems in the organization, or implement changes in structure or direction. For example, if you run a care home, you will seek advice from service users, relatives and staff on ways to improve the quality of life for residents. This may start a new activity or change a menu option. They are often referred to as “open space meeting”, “world cafe”, “future search”, and “appreciation research peak”. Technological Intervention
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Technostructural interventions refer to programs of change aimed at technology and organizational structure. This is becoming increasingly relevant in today’s technology landscape, with a rapidly changing market.
8. Organizational design (structural). The functional structure of an organization is key to how it works. You may be familiar with the classic hierarchical organization chart. This is called a functional structure. Other structures are division, matrix, process, customer-centric, and network. The main activities in organizational design are reengineering and downsizing. This includes rethinking the way we work, preparing our organization, and restructuring around new business processes.
9. Total quality management. Total quality management is also known as continuous process improvement, lean, and six-sigma. It grew out of the manufacturing emphasis on quality control. This makes customer satisfaction central to the organization’s long-term success. To achieve this, there is a strong focus on total employee involvement in the improvement of products, processes, and workplace culture. Companies such as the car manufacturer Toyota and the phone manufacturer Motorola, use this intervention.
10. Work design. All work must be done to get results. The results vary from organization to organization. Work can be designed to get results quickly. Or, the emphasis can be placed on employee satisfaction (which can lead to more quality results, but often this is more expensive). Depending on the approach an organization chooses, the skills required will vary. Designing work in such a way as to produce optimum productivity is called work design.
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11. Project enrichment. Project enrichment is part of work design. The goal here is to create interesting and challenging projects for the people doing them. Examples of factors to consider are skill variety, task identity, autonomy, and feedback.
A Job Diagnostic Survey (JDS) as part of the work design, Organizational Development Intervention (image based on Cummings & Worley, 2009)
It is an organizational development technique that focuses on how to manage individuals. Many of these are part of the HRM function.
13. Develop talent. These include talent management practices like coaching & mentoring, career planning, developmental interventions, and management and leadership development.
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14. Diversity intervention. Diversity is the source of innovation. These include age, gender, race, sexual orientation, disability, and cultural, and value orientation. This OD intervention technique is aimed at increasing diversity.
15. Health intervention. Employee wellness interventions include stress management programs, and employee assistance programs. They address social factors and aim for a healthy work-life balance. Strategic Change Intervention
This organizational development technique focuses on the change process that shakes the organization to its core. The OD department plays an important role in bringing about this change.
16. Transformational changes. It is a process that involves changing the fundamental character of the organization, including how it is structured and how it works. For example, Nintendo is famous for its video games. However, the company was founded in 1889 to make card games. Due to changes in consumer interests, Nintendo moved into electronic toys, and later video games, from the 1970s.
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17. constant change. Continuous change is an intervention that allows the organization to improve gradually, by making small incremental changes. A popular example is the learning organization. This approach is more important
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