OD is the practice of planned, systemic change in the beliefs,
attitudes and values of employees for individual and company growth. The
purpose of OD is to enable an organization to better respond and adapt to
industry/market changes and technological advances. Overall there exist five
benefits of OD from continuous improvement to increased profits. These are also
regarded as fundamental strengths of OD.
Continuous Improvement
Companies that engage in organizational development commit to continually
improving their business and offerings. The OD process creates a continuous
cycle of improvement whereby strategies are planned, implemented, evaluated,
improved and monitored.
Increased Communication
One of the key strength to OD is increased communication, feedback and
interaction within the organization. The goal of improving communication is to
align all employees to shared company goals and values.
Employee Development
Organizational development focuses on increased communication to
influence employees to bring about desired changes. This causes an organization
to regularly enhance employee skills to meet evolving market requirements.
Product & Service Enhancement
A major strength of OD is innovation, which leads to product and
service enhancement. Innovation is achieved through employee development, which
focuses on rewarding successes and boosting motivation and morale.
Increased Profit
Organizational development affects the bottom line in a variety of
ways. Through raised innovation and productivity, efficiency and profits are
increased. Costs are also reduced by minimizing employee turnover and
absenteeism. As OD aligns objectives and focuses on development,
product/service quality and employee satisfaction are increased.
