Why Is Organizational Development Important to Businesses?

Organizational development is a technique used for bringing change in the entire aspect of the organization, rather than laying stress on the individuals, so that change is readily absorbed. It pursues to change ideas, attitudes, theories, edifices and practices so that the organization can better adapt to technology and live with the fast-moving change. It is a powerful technique which uses the behavioral science knowledge to help the organizations in adjusting easily to the changes.

Every organization has a need to remain viable and to survive in the world of change. So, the need for organizational development has grown rapidly in response to this need of the organization. Thus, in the present article we are going to discuss about the need for organizational development.

Need for Organization Development –

Organization Development is extremely broad field. It can be applied any time an organization wants to make planned improvements using the organizational development. It can be used in any of the following situations:

  • To develop or enhance the organization’s purpose for what it wants to be.
  • To help regulate functional structures in an organization so they work together for a common purpose.
  • To create a strategy for how the organization is going to make decisions about its future and achieving that future aim.
  • To manage conflict that exists among individuals or groups and disrupt the ability of the organization to function, in a healthy way.
  • To apply processes that will help improve the ongoing operations of the organization on a continuous basis.
  • To create a collective environment that helps the organization be more effective and efficient.
  • To create reward systems that are suitable for the goals of the organization.
  • To help in the development of policies and procedures that will improve the ongoing operation of the organization.
  • To evaluate the working environment, to realize strengths on which to build and areas in which change, and improvement are needed.
  • To provide help and support for employees, who need an opportunity to be coached in how to do their jobs better.
  • To help in providing feedback on individual performance and training to help them in their individual development.

These are some of activities for which organizational development professionals might be needed to assist an organization.

The Purpose of Organizational Development

There is much need for organizational development in businesses because it addresses and solves a problem, thus increasing a company’s effectiveness. Organizational development works to improve organizations in a more methodical way. The purpose of organizational development is to balance the strengths and weaknesses of a business, reestablishing the employment of that business’s resources and to use them most efficiently and productively. This is done thorough judgement, drafting, employee engagement and training where necessary, and progressive measures to maintain employee performance.

Organizational development is a process that makes use of organizational resources to improve performance and output in the workplace. An effective organization can also raise employee morale because workers can feel more empowered and valued when the company is well structured. The importance of organizational development also depends upon how a problem is solved within a company as well as the ways in which a process is analyzed to find a more effective way of doing it. Applying organizational development requires an investment of time and money. But as you begin to understand the need for organizational development as well as the role of organizational development in helping you chart a strong course for your business, it will more than justify the costs.

  • Identifies Areas That Need Change – One of the functions of organizational development is that it identifies areas in a company where change is needed. Senior decision makers and managers can analyze each need and extend the possible effects of change into a management plan. This plan outlines the distinct ways in which the change will improve company operations, which staff members will be affected by the change, and how it can be exhibited efficiently to employees. Without organizational development, an organization would have a tough time developing effective change management programs. Thus, there is a tremendous need for organizational development.
  • Promotes and Manages Growth – Yet another reason for the need of organizational development is as an important tool in managing and planning company growth. This can be achieved through an organizational development study that brings together sales enlargements and customer demand to help determine the rate of the company’s growth. In some cases, the organizational development analysis may change a company’s original business plan and push them into an exciting new direction. However, by using this analysis, one can properly detain company resources such as personnel to promote and manage future growth.
  • Helps Product Innovation – Another important function of organizational development is product innovation, which requires the examination of various kinds of information to be successful. The need for organizational development is there because it can help outline each element of product development and create a method for using it effectively.
  • Analyzes Work Processes – Analyzing a company’s work processes is another role of organizational development. When your company is concerned in organizational development, you can diagnose work processes for efficiency and correctness. You can determine whether there is repetition in the things you’re doing, or if you need more employees to take up a task that is neglected. Any quality control measures needed to attain company standards are put in place. Surveyors analyze processes that can be combined for greater efficiency and develop and implement thorough plans on how to improve company proceedings.

Every organization has room for improvement. Sometimes organizations must quickly react to environmental challenges, whether from competing companies or economic disruptions. The business world changes constantly. Thus, there is a need for organizational development to adapt to these changes, increasing their effectiveness and making the most of their resources. Organizational development is not just what businesses do to alter and expand or to react to external factors. It is a strategic process of organizational improvement, addressing an organization’s changing needs through careful assessment and planned intervention.