Steps to the Organizational Development Process
Organizational Development" is an effective way to revitalize an organization and create a state where employees can achieve results individually and as a team. The measures may lead to solutions to current organizational issues. Please consider taking initiatives to achieve an organization that can maximize performance.
This article explains the basics of organizational development, the advantages and disadvantages of implementing it, as well as the procedures and key points. We will also introduce the main methods and frameworks of organizational development, which HR professionals are encouraged to refer to.
What is Organizational Development?
At the beginning, we will provide you with basic knowledge about the meaning and purpose of organizational development, as well as the reasons for and background of the attention it is receiving. Let's start by deepening your understanding of why you should engage in organizational development for future practice.
Meaning and Significance of Organizational Development
Organizational development is a term that refers to the concept and efforts to revitalize an organization through the relationships and interactions between people in the organization. It is also called "OD," which is short for "Organization Development" in English. In organizational development measures, issues within the organization are brought to the surface, and the goal is to create a state in which each and every employee thinks about solutions as a party to the issue.
Main Objectives of Organization Development
Organizational development is designed to ensure that an organization continues to function healthily while adapting to a constantly changing environment. It plays an important role in creating a corporate culture in which individuals work on their own initiative to address organizational issues. Setting up mechanisms and rules that create synergy in the group is another important approach in organizational development.
Reasons and Background for the Attention to Organizational Development
The reason why organizational development is attracting attention in the Japanese business scene is because organizations are required to change along with the changing work styles of individuals. This is due to the spread of performance-based values, the diversification of employee employment patterns and nationalities, and the increasing complexity of communication methods with the spread of IT technology.
Many companies are unable to fully utilize their own human resources due to their inability to adapt to these changing times. Companies need to revitalize their organizations and create an environment that maximizes their strengths. This calls for organizational development that emphasizes relationships among individuals and teams and enhances the quality of communication.
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Difference between Organizational Development and Human Resource Development
A term similar to organizational development is "human resource development. Here we explain the meaning of human resource development and how it differs from organizational development, comparing the two.
There are differences between organizational development and human resource development in terms of subject matter and methods.
Human resource development refers to efforts to enhance individual performance by encouraging employees to acquire knowledge and skills. It is not uncommon for it to be used in the same sense as "human resource development. The objective is to improve the abilities of each individual employee by having them acquire knowledge and skills that are currently lacking. Training, workshops, and other methods are used for this purpose.
On the other hand, organizational development targets the relationships among individuals and teams and their interactions. Organizational development methods include the creation of an environment and structure within the organization.
The table below compares the differences between organizational development and human resource development, using the two issues of "new employee turnover" and "early career development of young employees" as examples.
<Differences in factor identification and measures between organizational development and human resource development (1)
Organizational Development
Human Resource Development
Challenges
New employee turnover
Factors to be addressed
Difficult environment for new hires and their supervisors to build a relationship
Lack of management skills of the new employee's supervisor
Examples of measures
Introduction of a feedback system from subordinates to their supervisors
Implementation of training and workshops for supervisors of new employees
<Differences between factor identification and measures for organizational development and human resource development (2)
Organizational Development
Human Resource Development
Challenges
Rapid development of young employees
Factors to be addressed
Problems in the young employee's relationship with his/her supervisor, differences in perception of issues
Lack of knowledge and skills of younger employees
Examples of measures
Improvement of rules for 1-on-1 meetings
Implementation of training for younger employees
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Advantages and Disadvantages of Organizational Development
Before undertaking organizational development, it is important to keep in mind the advantages and disadvantages. Ideally, it is best to consider the burdens that may be placed on the organization, while at the same time taking into consideration the ways in which the efforts can be made to bring about better results.
Merits of Organizational Development
Maximize organizational performance
When a company engages in organizational development, it can have a positive impact not only on individual employees, but on the organization as a whole. The benefits include the potential to improve individual and team performance. It can lead to organizational improvements, such as better ideas being generated and faster decision-making.
Because organizational development efforts are less dependent on individuals and are an approach to changing the organizational structure itself, they can be expected to have lasting effects.
Strengthening Branding
Organizational development measures can strengthen your company's branding by ensuring that individuals and teams share the same goals and values. Individuals and teams will be able to act based on an understanding of the direction they should take as a company, which will enhance the brand value and service quality provided to customers. It is possible to build a strong brand from within the organization.
Improved sense of unity and morale in the organization
When communication within an organization is enhanced through organizational development, good relationships are built in the workplace, leading to easier cooperation and dialogue. The benefit is that the sense of unity of belonging to the same organization increases work motivation. The interaction among members also fosters a corporate culture of positive and good initiatives, which can be expected to improve morale.
Disadvantages of Organizational Development
There is a risk of increased workload
Depending on the content of the organizational development measures, it may be necessary to change the current workflow. Please note that there is a risk of temporarily reducing work efficiency in the field when the way of cooperation between individuals or teams in the business is changed.
For example, in cases where a new progress management sheet is introduced for collaboration among teams, the burden of inputting information may be greater than expected. In this case, the possibility of a shortage of time that can be spent on normal work should be taken into consideration.
There is a risk of employee resistance or indifference.
Some employees in the organization may be critical of change through organizational development. If these employees are not confronted, there is a risk of backlash within the organization after implementation. In addition, if many employees remain indifferent to the policy, there is a risk that it will become a formality and end in failure.
It is a good idea to consider in advance how to introduce the measures and how to deal with the situation, taking into account that some employees may not be cooperative in organizational development.
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Procedures and key points for implementing organizational development
This section describes the flow of implementing organizational development, divided into four steps. We will also introduce points to note at each step, so please take a look at them.
Step 1: Grasp the current situation and clarify the objectives
First, clarify the purpose of organizational development based on the current status of the company. The key point is to identify specific problems based on facts, not abstract issues. Gathering information through interviews with employees and questionnaires is effective.
Once your company's issues have been identified, visualize the gap between the state of the organization you should aim for and the current situation. Based on the results of the problem analysis and your company's corporate philosophy and vision, determine the direction of organizational development.
Step 2: Planning a concrete action plan
Based on the direction established at the beginning, we will decide on specific organizational development actions. Once the actions are considered, it is important to call for cooperation from the field. When doing so, involving key people in the organization and gaining their support will demonstrate leadership and make it easier to implement the measures.
Step 3: Test the effectiveness of the measures with a small start
This is the stage where measures are initiated and their effectiveness is tested. It is recommended to start as small as possible, for example, by limiting the implementation to a few departments or teams at first. After understanding the potential issues that may arise, the scope of the project should be gradually expanded to a larger scale.
Step 4: Introduce successful measures to the entire company
Once the effectiveness of the measures has been verified and success is recognized in the small start, organizational development is introduced to the entire company. Once the results of the measures are analyzed and the reasons for success are clarified, it is important to reflect them in the next measures. After company-wide implementation, continue to verify the effectiveness of the measures and make repeated improvements.
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Methods and Frameworks for Organizational Development
Finally, we would like to introduce some typical methods and frameworks that are used in many companies' organizational development. Why not incorporate them into your own organizational development measures?
AI (Applied Inquiry)
AI (Appreciative Inquiry) is a method of developing action plans by asking questions that help individuals and organizations to envision their potential and what they want to become. AI is also called "AI" for the English word "Appreciative Inquiry," which means "to find value" and "Inquiry" means "to ask questions.
In the AI method, each team asks each other in-depth questions to find out the good parts of individuals, what they are striving for, and what makes them successful. Allowing employees to engage in this process brings about the habit of sharing positive images.
World Café
The World Café is an interactive method of free discussion in a relaxed café-like environment. Basically, small groups of people work together to deepen their understanding of each other while discussing a pre-determined theme. Group members rotate on a timed basis, and at the end of the session, the participants share their findings as a whole.
The World Café does not require discussion. The purpose is to provide an opportunity for employees in different positions to talk openly with each other and to promote mutual understanding within the organization.
The 4Ss of Software
The "4Ss of Soft" are four interrelated elements that serve as benchmarks for organizational management. The 4Ss stand for "Shared Value," "Style," "Staff," and "Skill. Analyzing the soft 4Ss of your organization can lead to strategic planning.
The soft 4Ss are a concept that appears in the "7Ss of Organization" proposed by McKinsey & Company, a management consulting firm. The 7Ss of an organization consist of the "4Ss of software" and the "3Ss of hardware. The 3Ss of hardware, meaning "Strategy," "Organizational Structure," and "System," are said to be easier to control than the 4Ss of software.
Tuckman Model
The Tuckman Model is a framework proposed by psychologist Tuckman that shows the growth stages of an organization in five stages. The stages are divided into "Formation Phase," "Disruption Phase," "Unification Phase," "Functional Phase," and "Scattering Phase.
The Tuckman model can be used as a reference for organizational development based on the issues that are likely to arise during each of these processes. This model is often used in team building, and is suitable when aiming for a high-performing organization.
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Lead Your Company to Growth through Organizational Development
We have discussed organizational development. Organizational development can revitalize the organization through relationships and interactions within the organization. While it can be expected to enhance performance, it can also lead to a burden on the field and employee resistance, so there are some aspects to be aware of when introducing it. Please refer to the procedures and key points described above and consider measures that will lead your organization to growth.
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