The Definition Of Organizational Development
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The definition of organizational development or OD is a broader term; it means planned efforts to increase the viability and relevance of the organization. It is a readiness to meet changes that may come up during the course of business. In the modern dynamic world, the importance and relevance of OD can never be ignored.
Organizational development means evolving humanistic values which have certain specific objectives. OD aims at providing opportunities for people to work as human beings instead of resources of the organization. The underlying values of OD gives the workers and other members of the organization a sense of well-being who are motivated to strive hard for the well-being of the enterprise.
OD aims at treating each member of the enterprise important and useful. As a result, the workers of the company work enthusiastically for the betterment of the enterprise. The efficiency of the company is increased with ensures optimum utilization of all resources of the enterprise in the best possible manner which in turn delivers fruitful results in no time.
The objective of OD is to improve the overall performance of the enterprise by enhancing the productiveness of the company. Increased productivity results in low cost production and the company is able to enjoy the economies of large scale production. This brings down the cost per unit of the product. Hence, the business is in a position to market its products at competitive rates compared to its competitors in the market. Low rates attract more customers and help to build a huge client base. More customers means more sales and more profits which is the ultimate aim of any business.
OD works to create a favorable working environment for employees of the organization. A conducive working environment has a positive effect on the efficiency and productivity of the employees which in turn enhance the productivity and profits of the company. A friendly environment at the workplace is also necessary for employee interaction to work together as a unit for the common goal of the organization.
By developing healthy competition, OD aims at improving the working capability of the workers within an organization. Workers compete with each other to complete challenging tasks and sharpen their skills in the process. Moreover, they are rewarded in terms of increased pay and promotion.
Competition and promotion increase the job satisfaction of workers. As a result of this, the morale of the employees is very high and they tend to perform better even in recessionary times with limited resources at their disposal. Employees work to their full potential when they feel a part of the company and interact with each other for the attainment of the common goal of the organization.
Having effective OD is necessary for motivating the workers, improving their morale and efficiency, increasing employee retention rate etc. Thus, OD is a much broader term; the definition of organizational development covers most of the vital aspects of the organization. Business enterprises that have better OD enjoy an edge over others in the modern turbulent world. This is certainly true because the challenges posed by modern business world are multi-faceted as well as dynamic.