Organisational development is a continuous process.

It takes at least one year to have a start and

may continue for indefinite long period. It is a complicated process and hence needs top
management support without which the process cannot be adopted or if adopted cannot be
successfully implemented in the organisation.
Process of Organizational Development are as follows:

Problem
identification
and definition

Evaluation of Collection of
feedback. necessary data

Planning of
change and its Diagnosis
implementation

Step # 1. Problem Identification and Definition:

Understanding and identification of the problem in the organisation is the first step in OD process.
The awareness of the problem includes knowledge of the possible problems of organisational
growth, human satisfaction, organisational effectiveness, and use of human resources. Having
understood exactly what the problem is, the OD practitioner can proceed to collect the necessary
data to solve the problem.
Step # 2. Collection of Necessary Data:
Data gathering is perhaps the most important activity in the process of OD. Personal interviews,
personal observations, and questionnaires are the most common base through which the data is
collected. Different data and as such the question of which method to use depends upon the
nature of problem the organisation encounters. Having collected the necessary data, organisation
proceeds to analyse it.
Step # 3. Diagnosis:
There is no hook-book formula for accurate diagnosis. It demands considerable skills of analysis
and observation as most of the problems are often expressed by organisational members in
ambiguous terms. OD program may turn out to be a self-defeating exercise if decisions were to
be based on such general vague information.
Before decisions are taken, the information collected must be subjected to a microscopic
examination, and therefore, experience and judgement are critical to this phase. If organisational
leaders were to show in decent haste to arrive at decisions quickly without considering the pitfalls,
dangers, it may prove to be very costly at the end. Diagnosis should not be limited to a single
problem.
Often, important factors like attitudes, assumptions, available resource, etc., must be taken into
account in the diagnostic phase. For this purpose attitude surveys can be undertaken through
questionnaires wherein the respondents may be asked to evaluate and rate several jobs related
factor like working conditions, compensation, benefits, etc.
Such surveys will help identify the problem clearly as perceived by the organisational members.
Diagnosis assists the planners to locate the source of specific problem and see what changes are
required in the system, the structure, or in people.
Step # 4. Planning of Change and its Implementation:
After diagnosing the problem, the OD expert turns his attention to the planning of change and
implementing it. OD interventions come into picture here. Intervention is considered to be the
action phase in OD process. Intervention is a set planned, programmed activities, and techniques
by which organisation and their clients collaborate in an OD program. According to French and
Bell, ‘interventions consist of the long-range evolving applications of OD techniques targeted for
changing individuals, groups, or the total organisations’.
The range and numbers of available interventions is not small but extensive. The particular
interventions to be used depend on the target group in the organisation. One intervention differs
from another. In a program it does not consider all interventions, but selects the appropriate one
that suits the requirement. But sometimes more than one intervention is used in a program.
Step # 5. Evaluation and Feedback:
Probably one of the important stages in OD process is evaluation. As one stage ends and another
stage looms, evaluation is helpful to know as to what has been done, whether it is correctly done
or not, and show whether further work is needed before proceeding to the next stage.
Any OD activity is incomplete without proper feedback. Feedback is the process of relaying
evaluations to appropriate employees and group by means of special sessions or reports.
Feedback must be carefully handled because sometimes emotional factor set in.
For instance, when mistakes of some of the members are spelled out then emotional factors
accompanying the resentment may creep in. It is important to remember that feedback should be
based on the broad array of data and should include the assessment of the change model itself.

Benefits of Organizational Development

Increasing productivity and efficiency comes with many benefits. However, the best way to
encourage positive results is by using a well-thought-out organizational development structure.
Organizational development is used to equip an organization with the right tools so that it can
adapt and respond well to changes in the market. The benefits of organizational development
include:
1. Continuous development
Entities that participate in organizational development continually develop their business models.
Organizational development creates a constant pattern of improvement in which strategies are
developed, evaluated, implemented, and assessed for quality.In essence, the process builds a
favorable environment in which a company can embrace change, both internally and externally.
The change is leveraged to encourage periodic renewal.
2. Increased horizontal and vertical communication
Of considerable merit to organizational development is effective communication, interaction, and
feedback in an organization. An efficient communication system aligns employees with mutual
goals, values, and objectives. An open communication system enables employees to understand
the importance of change in an organization. An active organizational development increases
communication in an organization, and feedback is shared continuously shared to encourage
improvement.
3. Employee growth
Organizational development places significant emphasis on effective communication to
encourage employees to effect necessary changes. Many industry changes require employee
development programs. As a result, many organizations are working towards improving the skills
of their employees to equip them with market-relevant skills and the right attitude.
4. Enhancement of products and services
Innovation is one of the main benefits of organizational development, and it is often associated
with the improvement of products and services. One approach to change is employee
development, and its critical focal point is a reward for motivation and success. In such a case,
the engagement of employees is very high, which leads to innovation and productivity. Through
competitive analysis, consumer expectations, and market research, organizational development
promotes change.
5. Increased profit margins
Organizational development influences the bottom line in many different ways. As a result of
increased productivity and innovation, profits and efficiency increase as well. Costs come down
because the organization can manage turnover and absenteeism. After the alignment of an
entity’s objectives, it can focus entirely on development and product and service quality, leading
to improvements in employee satisfaction.