Organizational Development


HR Glossary

Organizational Development

What is Organizational Development?

Organizational development refers to the process of building different strategies, and policies that help the organization in growing and achieving its goals. 

It is aimed at achieving organizational goals through the process of systematic changes in the beliefs, and values of the company. It helps in adapting to the modern-day world in a much better way.

Importance of Organizational Development

Companies often underestimate the importance of organizational development. Due to the amount of money and time it requires, OD is often neglected by many companies. However, here is how it can help your company. 


OD plays a major role in improving the efficiency of a company. Organizational development helps in upgrading the existing systems and processes which leads to improved overall efficiency levels among the company. 

Decreased Costs

OD builds the systems and processes in such a way that it helps in getting better outputs from the same level or even fewer inputs. It helps in increasing the satisfaction among the employees, which in turn helps in dealing with the problems of absenteeism and eventually leads to lowered costs for the company. 

Improved Quality of Operations

OD helps in improving the overall quality level of existing operations in the company. OD allows the company to upgrade its processes and find out the existing errors and fix them. 

Competitive Advantage

OD allows a competitive edge to a company over its competitors. OD helps the companies in building and upgrading their systems in a unique way, thus allowing them to stay ahead of the competition. 

How to Measure Organizational Development?

Here are some of the most common metrics for measuring organizational development-


It is one of the most important metrics for organizational development. Since the overall goal of development is to increase the revenue, it helps in measuring whether the development is effective or not.

Employee Turnover

Employee turnover rate helps in measuring whether the implementation of new strategies helps in sustaining the employees or not.

Inventory Turnover

It helps in measuring the effectiveness of the organizational development strategies.

Effective Strategy for Organizational Development

Here are some things to keep in mind while building a strategy for organizational development in your company.

Identify the areas that need change

The first and foremost step in developing your organization to grow is to identify such areas that lack something and need change. You can only move towards a better tomorrow with a clear goal in mind.

Develop an action plan

The next step is to develop effective strategies according to your needs and implement them in your organization.


Training is an essential element of organizational development. You need to train your employees in order to make them adjust efficiently to the new work environment according to the new strategies.


Feedback is yet another important aspect of developing an effective organizational development strategy. Under this step, the development consultant provides the company with all the necessary information about the implemented strategies. The consultant provides all the data and its analysis to the company.

Change Management

This step refers to managing the changes strategies in your company by keeping an eye on different functions of the business. Under this step, the manager needs to motivate their employees and support them in making it a smooth transition.

We hope this blog helps you in understanding organizational development in depth. For more insightful blogs;

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