Organizational development is the direction of organizational consulting, which is a list of methods aimed at changing the existing situation in the field of corporate culture, psychological climate, and other degrees of satisfaction with work. Unlike organizational diagnostics, these events and projects not only assess the current situation in the organization but mainly aim at changing this situation. In addition, the given development interventions are conducted at four levels, such as physical, infrastructural, behavioral, and cultural, and they are assisted by coaching activities.
Moreover, organizational development of an enterprise is a systematic, purposeful improvement of its organization by building more rational production and management structures, regulating the functions of individual units or divisions. The given approach also affects workers and their interaction by streamlining labor, managing processes based on the optimal combination of production elements, and creating conditions for their smooth functioning and further development. In other words, the essence of the organizational development of an enterprise is in the constant improvement of the organization of labor, production, and management.
Organizational development is a continuous process of advancing and improving the organization. These improvements come from proper changes, and planned interventions are the means of making desired renovations. Organizational interventions are purposed activities related to impacting the organization and are designed to establish and consolidate positive changes in the company’s operations. There are three crucial points about interventions which define their essence. Interventions penetrate an ongoing system of interactions, which means ordinary operations continue as usual. Interruptions are deliberate and may cause discomfort, and people may start resisting the changes, so assessing the readiness of the organization for change is one of the most significant parts of intervention planning. The last point is that interventions are to enhance the effectiveness of the organization’s processes, so proper selection of interventions is vital.
It is important to note that planned organizational intervention plays an essential role in providing a company with a clear and concise protocol to achieve the desired goal. It means that it is a program that allows a firm’s leaders to practically integrate the necessary change to improve the overall management. With the rapidly increasing uncertainty of the external environment, organizational development is associated with the modernization of business processes and the formation of competitive advantages to successfully position itself in the market.
The key condition for the adaptability of an enterprise is the analysis of its development stage, taking into account the accumulated potential and position in the market. However, in both foreign and domestic scientific literature, there are no studies related to the systemic transformation of the components of an organization following the concept of its life cycles. The adaptive organization is considered as a complex structure that includes, in addition to the management object, strategy, organizational structure, organizational culture, and personnel interacting with the external environment. Furthermore, organizational development interventions possess various levels of implementation. These layers of change include cultural, behavioral, infrastructural, and physical alterations.
Physical interventions are the most effortless to integrate because they are manifested in the form of tools and structures. Mechanical growth as a way of organizational development implies constant capacity building, first of all, production. Often, the staff is hired exclusively to solve problems. The advantage of this approach is the minimum cost of organizational development. The disadvantage is the hope that the newly hired personnel will successfully address the emerging problems. Mechanical growth leads to the fact that a numerically grown company becomes simply unmanageable.
Infrastructural changes are also short-term attempts to modify the current measurement systems of reward and regulation. The effectiveness of the application of expert methods for determining development directions largely depends on the qualifications of the experts involved. In most cases, the experts of the company are their leading specialists, such as the financial director, chief accountant, production manager, and head of information services. As a result, the direction of a company’s development is determined by the authority of one or another specialist. Thus, highly popular management methods and tools are implemented regardless of the objective conditions for the development of a particular company.
However, behavioral interventions are manifested in the changes personnel’s approach to perform their tasks and responsibilities, and it can be considered as a long-term alteration. This part of the function is carried out primarily by linear and partly functional personnel and can be called organizational activity. It is aimed at organizing the execution of management decisions and contributes to the stabilization of the production system. Cultural organization interventions are the most difficult to implement because it requires to change people’s beliefs, values, and cultural norms.
The given component is specific and fully manifested in the design of enterprises, technological processes, and equipment design, at all subsequent stages of the enterprise’s life. It is true in various critical situations of its development, when fundamental organizational relationships and connections are needed, and also in the process of evolutionary development enterprises. This part of the function of the organization ensures the organizational development of the enterprise. In addition, the primary purpose of the coaching activity incorporate improvement is to eliminate communication barriers and predispositions to ease the transition period. It also educates personnel on the upcoming changes, which allows them to adapt at a substantially quicker pace.
There are many reasons why interventions may not succeed, but incorrectly identified problem and resistance to change are among the most common. The strategy chosen by an organizational development practitioner may not be suitable for the issue at hand, or the practitioner himself could be unskilled. In the face of potential failures, the interventionist must ensure the strategies are well-formulated and properly facilitated for desired changes to occur. This includes correctly identifying the problems, choosing the most appropriate intervention for each challenge, applying the interventions systematically, and devoting an adequate amount of time to them.
Serious consequences may arise from failed interventions that might affect the future growth of the company. The self-doubt that comes from unsuccessful change attempts may increase defensive behavior and psychological tiredness. As a result, the organization may fall into a stagnation trap, where it is unable to achieve any significant positive shift. Some of the considerations before undertaking any actions are matching interventions and problems congruently, determining whether the organization is ready for change, and deciding how to sequence the activities. Correctly analyzing the diagnostic data and proper planning can assure the successful execution of intervention activities.
Coaching is a type of individual intervention which aims to improve an employee’s specific skill area. Coaches attempt to create a suitable environment that promotes learning, development, and efficiency. Since an employee can choose which skills to develop, the company may encourage enhancing those skills that are in line with current corporate objectives. Through coaching activities, individuals gain not only personal benefit but also additional opportunities in aiding the organization and in contributing to the system’s overall performance.
In conclusion, it is critical to understand that organizational development is a set of outlined activities that lead to favorable changes in the organization to achieve the desired goal. Intervention programs provide a highly practical guideline to thoroughly implements these organizational modifications. The latter can be categorized into levels, which include physical, infrastructural, behavioral, and cultural. Coaching activities are designed to make the mentioned transitions easier by removing certain communication barriers.