Organization development (OD) #mba #management #marketing #business_adminstration #usa_mba

oRganization DeveloPment (oD)
Organization development (OD) is a planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization’s health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities.86 OD focuses on the human and social aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization’s capacity for adaptation and renewal.87
OD can help managers address at least three types of current problems:88


● Mergers/acquisitions. The disappointing financial results of many mergers and acqui- sitions are caused by the failure of executives to determine whether the administra- tive style and corporate culture

of the two companies fit. Ex- ecutives may concentrate on po- tential synergies in technology, products, marketing, and control systems but fail to recognize that two firms may have widely differ- ent values, beliefs, and practices. These differences create stress and anxiety for employees, and these negative emotions affect fu- ture performance. Cultural differ- ences should be evaluated during the acquisition process, and OD experts can be used to smooth the integration of two firms.
● Organizational decline/revital- ization. Organizations under- going a period of decline and revitalization experience a vari- ety of problems, including a low level of trust, lack of innovation, high turnover, and high levels of conflict and stress. The period of


transition requires the opposite, including confronting stress, creating open commu- nication, and fostering creative innovation to emerge with high levels of productivity. OD techniques can contribute greatly to cultural revitalization by managing conflicts, fostering commitment, and facilitating communication.
● Conflict management. Conflict can occur at any time and place within a healthy organi- zation. For example, a product team for the introduction of a new software package was formed at a computer company. Made of strong-willed individuals, the team made little progress because members could not agree on project goals. At a manufacturing firm, salespeople promised delivery dates to customers that were in conflict with shop super- visor priorities for assembling customer orders. In a publishing company, two managers disliked each other intensely. They argued at meetings, lobbied politically against each other, and hurt the achievement of both departments. OD efforts can help resolve these kinds of conflicts, as well as conflicts that are related to growing diversity and the global nature of today’s organizations.
OD can be used to solve the types of problems just described, as well as many others. However, to be truly valuable to companies and employees, OD practitioners go beyond looking at ways to settle specific problems. Instead, they become involved in broader issues that contribute to improving organizational life, such as encouraging a sense of community, pushing for an organizational climate of openness and trust, and making sure that the com- pany provides employees with opportunities for personal growth and development.89 One recent study looked at the results of an OD project in a large metropolitan sheriff ’s depart- ment that was plagued by extremely high turnover, low morale, ineffective leadership, and internal conflicts. OD consultants used a variety of activities over a period of four years to solve the crisis threatening the department. It was a long and sometimes difficult process; however, the study not only found that the OD interventions had highly beneficial results, but also that the positive impact lasted over a period of 30 years, right up to the present day.90