Organizational Development is the study and implementation of practices, systems, and techniques that affect organizational change. The purpose of Organizational Development is to enable an organization to better respond and adapt to industry/market changes and technological advances. Organizational Development can lead to high efficiency and increased productivity.
Some of the main benefits of Organizational Development are as follows:
1- Continuous improvement: Establishments that are into Organizational Development commit to continually improve their business and offerings. It creates a cycle of improvement whereby strategies are planned, implemented, evaluated, improved, and monitored. It is a proactive approach that embraces change, both internally and externally, and leverages it for renewal.
2- Increased communication: One of the biggest advantages of Organizational Development is increased interaction within the organization, communication, feedback, etc. This enables all employees to align with the shared company goals and values. Open communication also leads to increased understanding of the need for change within the organization. This happens across all levels of the organization and proper feedback is regularly shared for improvement.
3- Employee Development: It believes in increased communication to influence employees to bring about desired changes. The need for employee development stems from constant industry and market changes. Hence employee skills are regularly enhanced to meet evolving market requirements. This is achieved through a program of learning, training, skills enhancement, and work process improvements.
4- Product and service enhancement: One of the major benefits of Organizational Development is innovation. It leads to product and service enhancement. Innovation is achieved through employee development, which focuses on rewarding successes and boosting motivation and morale. In this scenario, employee engagement is high leading to increased creativity and innovation. Product innovation is achieved by using competitive analysis, market research, and consumer expectations and preferences.
5- Increased profit: Organizational Development impacts the bottom line in a variety of ways. Through sustained innovation, productivity and efficiency, profits grow steadily. It reduces costs as well by minimizing employee turnover and absenteeism. As Organizational Development aligns objectives and then focuses on the development of product or service quality, employee satisfaction goes up. The strategy of continuous improvement gives the company a distinct advantage in the cutthroat competitive market.
Conclusion: Organizational Development is the continuous growth and innovation of the organization on various fronts, ultimately leading to an improved bottom line.
Reference: trainersguild, digitalhrtech