What Is Organizational Development?
Organizational development is the process of improving a company’s structure, people, processes and systems. It focuses on making businesses more efficient and effective by addressing issues with leadership, communication, teamwork and productivity.
Organizations can vary in size from small teams and businesses with a few members to large companies with thousands of employees. Regardless of their size, organizations have one thing in common: they need to constantly adapt and evolve to meet new technology, consumer demands and cultural needs.
Creating an organizational structure is important because it allows the business to organize its operations in a way that best fits the company’s goals. The structure includes the roles and responsibilities of each person in the company, along with their chain of command and span of control. This gives the staff in each department a clear understanding of how they are expected to work and what their specific job duties are.
There are many types of organizational structures that companies use to establish the hierarchy within their businesses. These include functional, matrix, divisional and geographical structures.
A functional organizational structure is a system of supervision that provides a hierarchical structure for jobs in which each person reports directly to a supervisor. It is suitable for companies that have a variety of functional areas and multiple locations. A matrix organizational structure, on the other hand, has two or more supervisors for each job to report to. This is the most complex, but may be necessary for large companies with several departments and functional areas.
Another type of organizational structure is a project-based structure, in which the employees are responsible for completing a set of projects that the company assigns to them. This allows them to be supervised and directed by different people in each project. This can be helpful for companies that have projects in a wide variety of fields, such as marketing or launching a new product.
It is also useful for companies that outsource a lot of their work to freelancers, such as web designers and IT technicians. This helps to ensure that each member of the team knows who to contact and how to report any problems they may encounter.
Depending on the business, organizational development can focus on changing the entire structure of an organization or just a few key points that impact the company’s success. The approach depends on the needs of each client and is often tailored to fit their specific culture, mission and goals.
The goal of organizational development is to make an organization more capable through the alignment of its strategy, people, rewards and metrics. This involves a process that starts with an initial assessment of the business, including its vision and values. Then, the OD professional creates an action plan that addresses the issues and bottlenecks identified by the initial assessment.
The OD process is used to help organizations improve their processes and systems, which in turn leads to improved performance. It is also used to help develop a cohesive corporate culture that encourages innovation, efficiency and accountability. It is a powerful tool for any business looking to thrive in the future.