Organizational development

From CEOpedia

Organizational development (OD) is a planned, systematic approach to improving organizational effectiveness through the application of behavioral science knowledge and practices, focusing on the human and social processes of organizations (Burke W.W., Noumair D.A. 2015, p.12)[1]. The company's culture feels toxic. Morale has tanked. Turnover keeps climbing. Bringing in a consultant who administers surveys, runs workshops, and helps design interventions—that's organizational development in action. The field applies social science research to help organizations become more effective and more humane.

Richard Beckhard and Douglas McGregor coined the term "organizational development" around 1959 while consulting at General Mills. Simultaneously, Robert Blake and Herbert Shepard were using similar approaches at Esso. Both groups drew from Kurt Lewin's earlier work on action research and group dynamics at MIT. The field grew through the 1960s and 1970s, establishing itself as a distinctive approach to organizational change that emphasizes participation, collaboration, and long-term development over quick fixes.

Historical roots

OD emerged from several traditions:

Laboratory training

T-groups. The National Training Laboratories developed sensitivity training in the 1940s, where small groups explored their own dynamics[2].

Personal awareness. Participants learned about themselves through feedback from group members.

Action research

Lewin's model. Kurt Lewin developed action research—cycles of planning, action, and evaluation applied to practical problems.

Survey feedback. Rensis Likert and colleagues at the University of Michigan developed methods for collecting and feeding back survey data to organizations[3].

Core values

OD operates from distinctive values:

Humanistic orientation

Human potential. Belief that people have capacity for growth and that organizations should develop human capability, not just exploit it.

Participation. Those affected by decisions should participate in making them[4].

Democratic process

Collaboration. Emphasis on working with clients rather than doing things to them.

Transparency. Open sharing of data and intentions.

OD process

Typical interventions follow a pattern:

Entry and contracting. Establishing relationship, understanding the situation, agreeing on approach.

Diagnosis. Collecting data through interviews, surveys, observation. Understanding what's happening and why[5].

Feedback. Sharing diagnostic findings with organizational members.

Intervention. Designing and implementing changes—team building, process consultation, structural change.

Evaluation. Assessing whether interventions achieved intended effects.

Types of interventions

OD practitioners use various approaches:

Human process interventions

Team building. Improving how work groups function together.

Process consultation. Helping groups understand and improve their own processes[6].

Third-party intervention. Mediating conflicts between individuals or groups.

Structural interventions

Job design. Restructuring work for better motivation and effectiveness.

Organizational design. Changing formal structure, reporting relationships, coordination mechanisms.

Human resource interventions

Performance management. Systems for setting goals, providing feedback, evaluating performance.

Career development. Programs supporting individual career growth[7].

Contemporary challenges

The field faces questions about its relevance:

Speed pressures. Organizations want quick results; OD emphasizes long-term development.

Evidence demands. Pressure to demonstrate measurable return on investment.

Technology. Digital transformation creates new challenges for human-centered approaches[8].

Innovation deficit. Some scholars argue no major OD innovation has emerged since appreciative inquiry in 1987.


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References

Footnotes

  1. Burke W.W., Noumair D.A. (2015), Organization Development, p.12
  2. Cummings T.G., Worley C.G. (2014), Organization Development and Change, pp.23-38
  3. French W.L., Bell C.H. (1999), Organization Development, pp.56-72
  4. Rothwell W.J. et al. (2015), Practicing Organization Development, pp.89-104
  5. Burke W.W., Noumair D.A. (2015), Organization Development, pp.134-148
  6. Cummings T.G., Worley C.G. (2014), Organization Development and Change, pp.178-192
  7. French W.L., Bell C.H. (1999), Organization Development, pp.234-248
  8. Rothwell W.J. et al. (2015), Practicing Organization Development, pp.312-328

Author: Sławomir Wawak