Development and organizational balance

From CEOpedia | Management online

Development and organizational balance are interconnected factors influencing success of every major project undertaken by the company and achieving long term (strategic) goals of management. The development of the organization can be understood as a long series of changes, which runs in a particular direction to diversify and enrich the components of the organization, as well as the relationships between its elements. The development means the occurrence of qualitative changes, evaluated positively from the point of view of the goal. Quantitative changes lead to a growth of the system.

The development of the organization includes a set of changes or intervention techniques, ranging from structural and systemic changes at the level of the entire organization and individual psychotherapy counselling session, introduced in response to environmental changes in order to improve the efficiency of the organization and well-being of workers.

Areas of organizational development

Fig.1. Areas of organizational development (extended version)

Development can be seen in different areas such as: economic, organizational, personnel, information, technical and production.

  • The economic dimension is determined by the efficiency of the management of the company productive factors and the management of investment projects and market activities.
  • The organizational dimension refers to the structure of the company management system, processes and administrative work, teams, human behaviour and adaptation processes, information resources, material and other production factors.
  • Social (personal) aspect covers a vast area of ​​management in the company: employment and work organization, motivation and development of employee, changing human behaviour in the company.
  • Information aspect is determined by the function of the preparation, processing, transfer of information and communication.
  • Technical dimension is determined primarily by research and development, quality of products, services, and operations (this is an area of scientific and technical progress and the development of quality products, which run the innovation process leading to diversification of products and their modernization).

Role of change in development of the organization

Everything changes: people, machines, organizations, environment

Change is mostly caused by: the development of science, engineering and technology new developments and inventions, new organizational solutions, new ways of working, new systems

Reasons for change: external: technical progress, shrinking resource base, rising commodity prices, changes in the political and cultural area, demographic change, the development of information systems, competitive actions, Internal: retraining of employees, rising wage demands, new products, new production processes, change in strategy

Responses to change: the introduction of continuous small improvements (e.g. TQM), the planned reorganization (e.g. engineering), ignoring of changes

Organization Development: a long-term process of growth and change of organization as well as the people working in it. The plan for such a process should be developed by the crew of the organizational unit, e.g. a branch, department, company and should aim to improve the efficiency of the organization

Organizational balance role in organization development

Since the second half of the nineteenth century, the notion of balance in the social sciences is well established. In economy this concept was developed by L. Walras and marginal school (Lausanne). On the basis of the sociology of the social system, equilibrium concept was introduced by V. Pareto. It is a constant "point X", around which revolve all the changes driven by conflict and struggle of conflicting interests.

Another ideas of equilibrium were developed by HI Bernard and H. Simon. According to H. Simon organizational sustainability highlights the need for subjective perception of participants (employees) organizations balance, their services to the organization contributions (effort, commitment, loyalty and other) incentives that the organization has to offer. The result of the balancing process is agreement on the objectives of the organization and its participants.

The process of developing a balance in organizations is continuous and difficult to predict, subject to a multiple fluctuations. Organizations are open systems that exchange material and information with the environment, and it is made up of two types of components: physical (technical) and social. The overall balance of the organization consist of partial equilibrium in four areas:

  • Material - external
  • Material - internal
  • Social - external
  • Social - internal.

Balance is a state of prolonged indecision between stability and change. The organization is forced to continually restore the ever-new forms in order to maintain a balance within their temporary perfection. Introducing some changes tends to stabilize (homeostasis), order set around the equilibrium point, control of the fluctuations. It introduces proportional progress in all sectors, learning through practice in typical situations, give continuous control, prevent accident and chaos. The system is subject to comprehensive regulation, innovate gradually, and creates a permanent standard, extended and repetitive structures.

Balance in organization is responsible for its survival, interference in balance often lead to its development. The development of the organization is the result of imbalances. Managers have to restore it on a higher level of material and human potential. The basic management instruments of dealing with imbalances are: strategy, structure, process and organizational culture.

Examples of Development and organizational balance

  • Employee Development: Employee development is one of the key elements of organizational balance. It includes employee training, career development, and performance management. Employee development aims to improve employee skills, knowledge, and abilities. It helps employees become better at their job and increase their value to the company.
  • Organizational Structure: Organizational structure is important for organizational balance. It defines the roles and responsibilities of different departments and individuals in the organization. It also helps ensure that all departments are working together and that resources are allocated efficiently.
  • Organization Culture: Organization culture has a significant impact on organizational balance. It helps define the values, beliefs, and norms of the organization. It also sets the tone for how employees interact and work together. A strong organizational culture helps ensure that everyone is working towards the same goals.
  • Strategic Planning: Strategic planning is essential for organizational balance. It helps define the organization’s direction and set goals. It also ensures that resources are allocated properly and that all stakeholders are on the same page. Strategic planning helps ensure that the organization is moving in the right direction and making progress towards its long-term goals.

Advantages of Development and organizational balance

A well-developed and balanced organization can bring a number of advantages:

  • Improved efficiency and productivity - As the organization develops, the efficiency of the processes, as well as the productivity of the staff, increases. This is because with the development of the organization, the structure of the organization becomes more efficient and the same tasks can be completed in less time.
  • Increased motivation - With a well-developed organizational structure, there is a clear path for employees to progress and grow. This provides employees with a sense of purpose and motivation to do their best.
  • Improved communication - Structure and development of the organization helps to facilitate clear and effective communication, both within the organization and externally. This helps the organization to be more efficient and productive, as well as allow for quicker decision making.
  • Increased customer satisfaction - With an effective organizational structure, customer satisfaction will increase as the organization is able to provide better services more quickly.
  • Improved stakeholder engagement - A well-developed and balanced organization is also more likely to be able to engage with stakeholders and build effective relationships, which can lead to increased opportunities for success.

Limitations of Development and organizational balance

The limitations of Development and organizational balance include:

  • Unclear objectives - Development and organizational balance can be hard to achieve if the organizational objectives are not clearly defined. Without clear objectives, it is difficult to measure progress and make adjustments as necessary.
  • Lack of communication - Poor communication between the various stakeholders can lead to misunderstandings that can hinder progress. Without proper communication, it is difficult to align everyone’s efforts and ensure that everyone is working towards the same goal.
  • Unclear roles and responsibilities - Without a clear definition of roles and responsibilities, it is difficult to ensure everyone is properly engaged and accountable for their actions.
  • Poor resource allocation - If resources are not allocated effectively, it can be difficult to achieve the desired outcomes.
  • Unresponsive decision making - If decisions are not made in a timely manner, it can result in delays and inefficiencies.
  • Unclear feedback loops - Without clear feedback loops, it can be difficult to ensure that the development and organizational balance is progressing in the right direction.

Other approaches related to Development and organizational balance

Achieving organizational balance requires an understanding of the various approaches to development:

  • Organizational learning: This involves improving the organization's ability to acquire knowledge, analyze and apply it, so that the organization can respond to the changing environment and adapt to changing conditions.
  • Strategic planning: This involves the creation of a plan for the future, which outlines the goals, objectives, and strategies that the organization should pursue.
  • Change management: This involves managing and controlling the changes within the organization, ensuring that the changes are carried out smoothly and with minimal disruption to the operations of the organization.
  • Leadership development: This involves developing the skills of the organization's leadership in order to ensure that the organization is well-positioned to achieve its goals.
  • Performance management: This involves monitoring and assessing the performance of the organization, so that necessary changes can be made in order to ensure that the organization is achieving its goals.

In conclusion, achieving organizational balance requires an understanding and implementation of the various approaches to development, such as organizational learning, strategic planning, change management, leadership development, and performance management. By understanding and utilizing these approaches, organizations can ensure that they are well-positioned to achieve their goals.


Development and organizational balance — recommended articles
Personnel strategy — Change management — Organizational progress — Organizational culture and project management — Strategy deployment — Context of the organization — Quality of work — Principles of scientific management — Organization of managerial work

References

Author: Krzysztof Wozniak

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