What do you understand by term ‘Organizational Change and Development’ and what impact it plays on
employee’s performance
Q) What do you understand by the term Organization Development and impact of
culture in Employee development?
Organizational change and development is basically an amendment in the organizational framework of
a company. It can be called reorganization, realignment etc. The objective is to increase productivity,
effectiveness of service delivery, etc. It can be a simple rejuvenation of the management people or a
complete recreation of the reporting structure which comes together with new responsibilities for
everyone!
An organizational development program uses employee training to improve organizational functioning
and help employees develop and update their skills to the latest world trends so they can be of greater
benefit to the organization. Organizational development is important in meeting established goals, and
for growth and gaining market share. Even for organizations not focused on financial goals, like non-
profits, organizational development can increase the organization’s reach and help it do more good in
the community or help more people.
Organization Development is an effort that is:
Planned
Organization-wide
Managed from the top
Increase organization effectiveness and health (touch the pulse of organization)
Through planned interventions in the organization's "processes,” using behavioral-science
knowledge.
OBJECTIVE & GOALS OF ORGANIZATIONAL DEVELOPMENT
The objective of Organizational Development is to modify the organization's capacity to handle its
internal and external operations and its contacts with others. This entails improved interpersonal and
group processes, strong effective communication, and an enhanced ability to cope
with organizational issues of all kinds. Organizational development helps in making employees adjust
with the vision of the organization. This encourages employees to confront their problems instead of
avoiding them.
BENEFITS OF ORGANIZATIONAL DEVELOPMENT
Due to placement of a well-planned organization development structure, the organization will reap
long lasting benefits and increased productivity. Organizational development is used to equip an
organization with the right tools so that it can adapt and respond well to changes in the market.
Five Key Benefits of Organizational Development
The benefits list of a company experiencing organizational development is: 1) Non- stop Improvement 2)
Increased Communication 3) Employee progress 4) Product & Service Enhancement and 5) Escalation of
revenues.
IMPACT OF ORGANIZATION DEVELOPMENT ON EMPLOYEE
PERFORMANCE:
Culture transforms the company into a team. It is like bringing together different components to make
a strong structure. In the similar manner, when various employee of diverse skills and background
come together to achieve common goals, the result is the creation of a most profitable venture which
will lead the company towards its glory and success. The culture at your organization sets
expectations for how people behave and work together, and how well they function as a team.
It can even act as your best recruiter, attracting qualified candidates who want to work for your
company. It’s easy to see how important company culture can be.
Let’s look at three aspects of company culture’s impact on employees:
1. Impact on employee performance
To provide the biggest competitive advantage, an organization’s culture must be strong,
widely communicated and reinforced. Everyone must share their values and beliefs.
In a strong culture, employees feel valued.
They enjoy at least some control over their jobs, instead of feeling powerless. Whether it’s by
working from home, choosing their projects or trying out a new role, employees that feel
valued and can make decisions achieve a higher level of performance.
Strong company cultures also give employees opportunities to grow. Offering promotions,
career development programs or extra training can keep employees motivated – which in
turn, improves performance. When everyone is in it together, they will all put forth the extra
effort to achieve organizational goals.
2. Impact on employee happiness
As the economy continues to recover from the recession, the job market is showing steady
improvement. That means businesses could start to see more turnover, as employees seek
greener pastures.
However, a positive company culture can ensure that employees remain satisfied with their
jobs and loyal to the organization. This can be extremely beneficial in a competitive hiring
environment. People are much more interested in signing on (and staying) with a company
culture that promotes flexibility, supports employee development and offers work-life balance.
Improving employee satisfaction through a strong and supportive company culture can
reduce recruiting, hiring and training expenses while improving morale and increasing profits.
3. Impact on employee engagement
By now, we’ve made it clear that a strong company culture has quite an impact on an
organization, as well as employee performance and satisfaction. Now let’s explore the many
ways that company culture can impact employee engagement:
Communication: In companies with good communication practices, employees know their
opinions and ideas are welcomed. When employees feel heard, they don’t carry the resentment that can
lead to absenteeism, negative morale and termination. Communicative company culture also leads to
greater participation, creativity, and innovation.
Safety: Organizations that value employees emphasize safety. A culture of safety becomes
ingrained, and employees are more mindful and engaged when performing their duties.
Collaboration: Rather than an “us vs. them” approach, collaborative companies promote
autonomy, decision-making, and teamwork. Employees are given opportunities to contribute, placed in
roles in which they can succeed, and offered opportunities to build meaningful relationships with managers
and co-workers.
Growth: Cultures that foster employee development and growth give workers something to work
toward and look forward to. Such cultures prevent boredom and job stagnation while keeping things
exciting and interesting.
Once employees are hired, trained and oriented to the workplace, they either feel supported
and energized or undervalued and frustrated. When employees feel valued, they are more
involved, enthusiastic and engaged.
Company culture is more important than ever
In today’s highly competitive business environment, everything from sales to recruiting
becomes more challenging. One way to make it all easier is by being a company that people
want to do business with and work for. Smart organizations know that a strong, positive
company culture is one of their most important assets.
