Role of Organizational Development in Contemporary Organizations
Organizational development is the study of employees’ beliefs, attitudes, performance, and values in order to improve organizational effectiveness and health by using the knowledge of behavioral sciences for systematic intervention in organizational processes that refers to systematic change. For an organization to be effective in its production activities, it must adopt an organizational development mindset. Therefore, some of the benefits that may come from organizational development are:
Organizational success requires change that results in continuous improvement. Organizations committed to organizational development have mechanisms in place to monitor implemented strategies and evaluate their success. Total quality management exists to ensure continuous improvement of the strategy in line with the set objectives. In addition, organizational development is essential to ensure the development of skills and experience of employees. This is achieved through continuous training and development to maintain employee productivity. Through training, employees in the organization learn more about new technologies available in the market and how to incorporate such innovations into the goals and strategies of the organization.
Organizational development also provides relevant information about future sales forecasts that lead to organizational growth. Forecasting future sales helps the organization determine the number of products to produce at lower cost and also determine the amount of inventory to reduce transportation costs and allow the organization to benefit from economies of scale. It also provides information about values. Finally, organizational development brings product innovation through the analysis of product development elements. Such product analysis may include competitive analysis, technology development, consumer tastes and preferences, target market research, manufacturability analysis, and patents and trademarks (Griffin and Morehead, 2011).