We explain what organizational development is, why it is so important for companies and what its main tasks are.
What is organizational development?
Organizational development is a process that involves use of techniques, strategies and practices that are carried out in a coordinated manner to manage a company's performance over time.
The organizational development process includes multiple purposes, how to promote, improve and reinforce the company structure or work processes. For example: growing the company, improving its current performance or optimizing its climate and culture to obtain efficient performance. Each goal involves a series of coordinated processes to achieve it.
The current organizational development process differs from the traditional system, which practiced decision-making vertically (that is, from a single person to the entire team), could not respond quickly and agilely to major changes and did not have takes into account the value that an employee who displays his or her maximum potential represents for the company.
Technological advances, changes in the economy, the market and the evolution of societies have influenced the paradigm shift of companies. The organizational development process contemplates multiple factors and actors to maintain constant learning and continuous improvement.
See also: Organizational culture
Main tasks of organizational development
The main objective of the organizational development process is achieve the greatest efficiency of the company as a whole not just in a particular area or task. The process includes a comprehensive approach to the company coordinated from management.
Depending on the structure and the field in which the organization operates, different strategies and practices may be implemented. Some tasks common to every company that are taken into account in the organizational development process are:
- Improve and reinforce work processes. There are tasks and strategies that contribute to optimizing the company's performance on a continuous basis. Through the use of technology (e.g. software to coordinate the production process between areas or to obtain performance indicators for each sector) it is possible to detect situations that require changes or improvements. It is a way to keep the company updated and better prepared for situations of change or crisis.
- Supervision of financial and accounting performance. There are control and internal audit tasks in the administrative area, which are usually carried out by an accounting professional. Depending on the type of company and its size, the volume of information handled may vary. Broadly speaking, it consists of budget control tasks, data records (on the assets, liabilities, assets and financial situation of the organization), with the aim of detecting capital leaks, anticipating possible debts and being up to date with tax payments.
- Commitment to members of the organization. There are employee loyalty tasks with the company to develop their potential to the maximum. This role is usually handled by the human resources department. They are initiatives that contribute to maintaining a positive work environment, aligned with the organization's business culture, to guarantee effective development of the company.
- Customer service. There are marketing tasks and strategies that, together with technology tools, allow us to improve the way the company interacts with customers at different times.
- Corporate Social Responsibility. There are comprehensive business management tasks, which combine profits with social or environmental impact. Through these initiatives, the company is committed to contributing to the well-being of the community and the environment.
Importance of organizational development
The organizational development process depends on various factors from internal factors (such as resources and personnel), to external factors (such as market actions or economic crises).
Although there are factors that impact the organization and are beyond its internal coordination, one of the biggest challenges of organizational development is planning which allows you to estimate your production, your profits and anticipate possible problems.
References
- Van Vulpen, E. (2023). What is organizational development? TO complete guide. https://www.aihr.com/
- Cummings, T.G. & Worley, C.G. (2014). Organization development and change. Cengage learning.
