What is organizational development?

A systematic and consistent change in the values or business operations to create overall growth in an organization is referred to as organizational development. It distinguishes itself from routine operations and workflow enhancements. It follows a methodology that management should openly explain business objectives to all workers.

A modification in communication procedures or their supporting structure is required for organizational development. Professionals evaluate and monitor the work environment to anticipate the changes in employees' performance, communication process, etc. This can be further used to achieve effective organizational development.

Advantages of organizational development

1. Increased effectiveness: Organizational development can lead to increased effectiveness of an organization as a whole. This is because organizational development can help to improve communication, decision-making, and other processes within the organization.

2. Improved employees’ growth: Organizational development can also lead to improved employees growth. This is because organizational development can help employees better to understand their roles and responsibilities within the organization. Additionally, organizational development can help employees to develop new skills and knowledge. Organizational development creates an organizational culture that leads to effective communication followed by its benefit to the employees.

3. Increased motivation: Organizational development can also lead to increased motivation within an organization. This is because employees will feel like their work is important and contribute to the organization's success.

4. Increased profit margins: Organizational development can also lead to increased profit margins. This is because an organization that is more effective and has higher morale will be more productive and will be able to sell its products or services at a higher price.

5. Improved customer satisfaction: Organizational development can also lead to improved customer satisfaction. This is because an organization that is more effective and has higher morale will be able to provide better customer service.

Disadvantages of Organizational Development

1. Time: Organizational development can take a significant amount of time because it often requires employees to change how they think and behave. Additionally, organizational development may require changes to be made to the organizational structure.

2. Money: Organizational development can also be costly because organizations often need to hire consultants or other professionals to help with organizational development. Additionally, organizations may need to make changes to their facilities or equipment.

3. Resistance: Organizational development can also face resistance from employees. This is because employees may not want to change how they think or behave. Additionally, employees may resist changes to the organization's structure as they would not see any scope of rewards in the long run.

Information technology in organizational development

Information technology is the study, design, development, implementation, support, or management of computer-based information systems. It includes both hardware and software components. The main purpose of information technology is to use computers to store, retrieve, transmit and manipulate data or information. Data is usually processed to produce useful information that can be used in decision-making by businesses or organizations.

The role of information technology in organizational development

Information technology plays a vital role in organizational development. It helps businesses to manage their operations more effectively and efficiently. Information technology allows businesses to communicate with their customers and other stakeholders more effectively. Businesses can develop new products and services quickly and efficiently. It helps businesses respond to market changes more efficiently and rapidly.

The benefits of using information technology in organizational development

Information technology can help businesses improve their operations, communication, and product development processes. It helps businesses reduce their costs, increase profits, improve customer service and increase their market share. It enables businesses in creating new jobs and business opportunities.

The challenges of using information technology in organizational development

Although information technology can help businesses improve their operations, communication, and product development processes, it can also pose some challenges. These challenges include the need for businesses to have the right infrastructure, the need for businesses to train their employees on how to use information technology, and the need for businesses to protect their data and information from security threats.

Common Mistakes

Organizational development is a process with many steps and objectives. Without a clear end goal in mind, it's easy to get lost in the shuffle and fail to accomplish anything meaningful. Organizational development is a complex process that takes time to complete. Trying to do too much at once will only lead to confusion and frustration. It's important to take things one step at a time.

Context and Applications

Organizational development is a fundamental topic in business and is important for other courses of study like Bachelors of Business Administration (General), Masters in Business Administration (General), Organizational Development Consultant Certification Program (ODCC), and Postgraduate Program in Management.

Related Concepts

While studying organizational development, it is important to read the following topics to understand the concept better:

• Artificial intelligence
• Cyber security
• Cloud computing
• Electronic engineering
• Computer science

Practice Problems

1. Which of the following is not the advantage of organizational development?

1. Customer satisfaction
2. Employees growth
3. Increased profit margins
4. Customer loyalty

Answer: d

Explanation: Customer satisfaction, employees’ growth, and increased profit margins are advantages of organizational development, whereas customer loyalty has no direct relation to organizational development.

2. Which of the following is not the factor in a business operation?

1. Sustainability
2. Employee punishment
3. Growth
4. Customer satisfaction

Answer: b

Explanation: Employee punishment involves penalties that are used to compel employees to follow legislation and norms.

3. Which among the following is not the disadvantage of organizational development?

1. Disruption
2. Resistance
3. Time
4. Loss of sales

Answer: d

Explanation: Disruption, resistance, time, and money are the major disadvantages of organizational development.

4. A systematic and consistent change in the values or business operations to create overall growth in an organization is referred to as ____________.

1. Production management
2. Employee development
3. Finance control
4. Organizational development

Answer: d

Explanation: A systematic and consistent change in the values or business operations to create overall growth in an organization is referred to as organizational development.

5. The project's initial stage in a software testing is to ___________.

1. Specify the demands
2. Characterize the network efficiency
3. Formally declare the research work
4. Personnel for the research project

Answer: c

Explanation: The very first stage is to declare the study project and conduct research work on it.