Pangasinan State University

Social Sciences Department

Bayambang, Pangasinan

Organizational Development

Imagine a family-owned lawn care company that started generations ago as

a small business. Over the years, it increased its profit margins and grew by
word-of-mouth. However, the firm is struggling to keep up with current e-
commerce trends. Its employees have a limited understanding of how to
create and maintain a website, leading to unanswered online inquiries and
poor customer service reviews.

The business is at a crossroads; it must evolve to keep up with growing

demand by implementing new customer service procedures for its office
staff. How does it begin to do so, and what does this change look like?

This is just one example of why all organizations must integrate

organizational development into their processes. Organizational
development isn’t as simple as coming up with a new idea and implementing
it; every step of the process has systematic methods, from identifying
problems and overcoming barriers to analyzing a new system’s results.

What Is Organizational Development?

Organizational development is a planned, systematic change in the values or
operations of employees to create overall growth in a company or
organization. It differs from everyday operations and workflow improvements
in that it follows a specific protocol that management communicates clearly
to all employees.
Organizational change and development can be a long, sometimes
overwhelming process, but companies usually begin with several goals in
mind:

 Ongoing improvement. Changing company culture to view new

strategies as a positive growth opportunity allows for ongoing
improvement and encourages employees to become more open to
change and new ideas. New strategies are introduced systematically
through planning, implementation, evaluation, improvement, and
monitoring.
 Better or increased communication. Organizational development
that leads to increased feedback and interaction in the organization
aligns employees with the company’s vision. Employees feel that they
have more ownership in the company’s mission and may be more
motivated as a result.
 Employee development. In today’s business world, employees must
constantly adapt to changing products, platforms, and environments.
Employee development comprises training and work process
improvements that help everyone keep up with shifting demands.
 Product and service improvement. Organizational development
leads to innovation, which can help improve products and services.
This innovation often comes as the result of intensive market research
and analysis.
 Increased profit. Organizational development helps increase profits
by optimizing communication, employee processes, and products or
services. Each serves to increase a company’s bottom line.
While change can be difficult, most companies find that the benefits of
organizational development far outweigh the costs.
The Process of Organizational Development
The organizational development process is a systematic, research-based
series of steps. Common implementation steps include the following:

 Identifying an area of improvement. Organizational change begins

with identifying a need that aligns with business goals. Companies
often know that need right away, but they may consider a data-driven
approach to identify problems through formal surveys and feedback.
This approach allows for a more thorough understanding of the area
for improvement. Companies should ask themselves what they want to
change, and why that change is necessary.
 Investigating the problem. Once the area for improvement is
identified, companies conduct an investigation to learn why the
problem exists, what the barriers to improvement are, and what
solutions have previously been attempted. This step can also include
surveys or focus groups and individual consultations.

 Creating an action plan. The company then creates a plan with

allocated resources and clearly defined employee roles. This plan will
include specific support for individuals involved and identify a
measurable goal. During this step, companies should think about how
they’ll communicate changes to staff and manage feedback.
 Creating motivation and a vision. Once the company has clearly
defined and communicated a plan, its leaders must motivate their
employees to share in a vision. This step involves leaders acting as
enthusiastic role models while helping employees understand the
plan’s big-picture goals and desired impact.
 Implementing. While stability is necessary during implementation,
supporting employees during the transition with mentoring, training,
and coaching is equally important. When thinking about such support,
management should consider what new skills employees will need and
what delivery methods will be most effective. Ongoing feedback and
communication can help make the change process easier.
 Evaluating initial results. Once the company has implemented a
plan, its leaders may create space for shared reflection, asking
 themselves and their employees if the change effectively met the
business goals. They’ll also evaluate the change management process
and consider what could be done differently. This step can’t be
overlooked; if the company doesn’t evaluate the changes, it won’t
know whether interventions have been effective.
 Adapting or continuing. Depending on the evaluation of the initial
results, the company may choose to adapt its plan. If the results show
success, it may continue with the current plan to keep improving.

Challenges to Organizational Change and Development

Organizational change and development can present some impediments to
success. Resistance to change is normal, as people become set in their ways.
To minimize resistance, leadership should consider a slow, incremental
rollout rather than making massive changes all at once. Since change is
often difficult to navigate, companies should hire leadership experts to
execute high-level changes. Education and communication are vital in
implementing change; employees are much less likely to resist if they have a
clear understanding of what’s happening and why. Effective management
can guide the process and offer team members clarity.
Common challenges that come with organizational development processes
include the following:

 Fear of the unknown. Some employees are afraid to implement new

plans because they’re afraid of failure or reluctant to enter uncharted
territory. They may be cynical about change if past initiatives failed, or
they may think the organization is fine as it is. Employees may directly
express this fear by complaining about new initiatives or passively by
neglecting their part in the process, for example, by arriving late to key
process improvement meetings.
 Conflicting goals. Sometimes, leaders disagree about a company’s
ultimate goals. This conflict often pertains to finances and allocation of
resources, sometimes stemming from poor communication between
management branches. These issues can be handled proactively by
instituting clear communication channels before beginning new
initiatives.
 Burnout. Change can be exhausting, and employees may experience
burnout if proper supports are lacking. To avoid employee burnout,
companies should keep the question “Is this realistic?” at the forefront
of all steps of the process and ensure that employees are maintaining
an appropriate work-life balance.
 Lack of leadership. Key leaders may leave an organization, forcing
the remaining employees to scramble to fill the gaps. Additionally,
current leadership may lack effective communication or teambuilding
skills. Each scenario can make organizational change more difficult.
  Lack of understanding of planned changes. Employees expect
well-planned and predictable changes, so when surprises or missteps
occur, they can lose faith in the process. Creating a timetable for the
changes and clearly articulating the problems that may occur can help
avoid these issues.
 Difficulty changing the mission or values. During periods of
change, some employees may feel that the company’s mission doesn’t
align with the new initiatives. This may cause resistance to change.

All About Organizational Development

Interventions
Organizational development interventions are the programs and processes
designed to solve a specific problem. The purpose of these interventions is to
improve an organization’s efficiency and help leaders manage more
effectively.

Often, organizational development interventions are categorized into the

three types described in the following sections.

Individual

Individual interventions relate to individual responsibility, habits, vision,

improvement, or workflow. Individual interventions may take the form of
coaching or mentoring. For example, an employee learning to use a new
technology platform may be assigned a mentor experienced with that
platform to answer questions and provide support.

Often, individual interventions are offered to new employees or employees

who are changing roles in a company. Other times, they’re used with
employees who present performance issues or whose attitudes negatively
impact team morale.

Group
Group interventions relate to a core team or branch, but not the entire staff.
Group interventions may be necessary because one part of a company is
changing how it develops a product, for example. These interventions may
take the form of professional development, coaching, or training
conferences.

Group interventions may involve restructuring a department and

communicating new job responsibilities to the relevant employees. If the
issue is interpersonal, these interventions may consist of team building or
conflict management training. Management typically carries out group
interventions, but occasionally an outside consultant is required.

Organizational
Organizational interventions involve an entire organization or business. They
may be necessary if a company is rolling out new strategies, visions, or
protocols that affect every employee. In some cases, organizational
intervention may involve boosting morale to create a stronger shared vision.

These interventions may include instituting employee wellness programs or

creating a company’s new mission and vision statement. For companies
rolling out a new business strategy, they may take the form of restructuring
responsibilities, forming a focus group, or finding new systems to monitor
output and success. Organizational interventions are often done through a
third party, such as an outside trainer or expert.

These interventions are often specific to an organization or a type of

problem. As such, different types of organizational development
interventions require different implementation strategies.

Organizational Development Models

Once an organization has identified an area of improvement and desired
outcomes, the how comes next. Organizational development models help
with change logistics by providing a clear framework. These models serve
two purposes: to help lay out a plan of action and to clarify communication
for employees.

Researchers and experts in the field of organizational change and

development have created several different organizational development
models.

Lewin’s Three-Step Model

Kurt Lewin’s change management model comprises three steps.
1. Unfreeze
In the first step, companies work to loosen current norms and procedures to
prepare for change.

2. Change (or Transition)

In the second step, companies introduce a new strategy and implement it.
During this step, management support and communication are critical to
keep employees motivated and focused.

3. Freeze (or Refreeze)

The third step solidifies the “new normal” and encourages reflection on how
to sustain the change.
Action Research
Lewin also created the action research model, which includes three phases.

1. Research on Problems and Theorizing Solutions

The research phase involves data collection, focus groups, and often hiring
an outside consultant or specialist. The goal is to identify a problem with an
actionable, results-focused solution.

2. Action Phase
The action phase involves implementing the change. Similar to the change
step in the three-step model, this step is impossible without clear
communication from leadership and strong support in place for employees.
3. Input and Results Phase
The final phase involves gathering data to assess the strategy’s impact on
the problem. This step involves analysis and reflection and can lead back to
step one if the action was ineffective.

Business Process Reengineering

The business process reengineering (BPR) model is much more radical and
can involve completely reimagining parts of a company. The phases in this
model are described in the following sections.

1. Map the Current State of the Organization’s Processes

Leadership documents current processes and procedures in preparation for
analysis.

2. Analyze the Processes

Using the process map, committees or individuals analyze procedures to
identify what’s working and what’s not.

3. Identify Improvement Opportunities

Teams identify areas of need and brainstorm solutions.

4. Design a Process Map for Future Improved Processes

Employees and management work together to plan changes. This phase may
include timetables, delegation of workload, or new organizational structures.

5. Implement Changes to Attain Improved Processes

The initiatives are rolled out, and employees receive training and support.

McKinsey 7-S Framework

The McKinsey 7-S framework isn’t defined in steps, but organized into seven
factors. To implement this framework, companies analyze each of the seven
S’s — shared values, strategy, structure, systems, style, skills, and staff —
and come up with solutions for improvement. The key factor is shared
values, which are the organization’s main priorities. The other six are
traditionally divided into two groups: hard S’s and soft S’s.

Hard S’s
 Strategy: the company’s overall direction
 Structure: the company’s organization, specifically regarding job
descriptions and responsibilities
 Systems: the processes and procedures that currently guide the
company
Soft S’s
 Style: the leadership style of upper management
  Skills: the company’s capabilities, including those of individuals as well
as the company as a whole
 Staff: the company’s employees
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organizational-development-guide/