Organizational development is the process of helping organizations improve through change

in policies, power, leadership, control, or job redesign. The main focus is to improve efficiency
and effectiveness within the organization. Organizational development can be undertaken by
the organization's leadership or an outside consultant.
Organizational climate, organizational culture, and organizational strategy are the three
main sections of organizational development theory. Organizational development is a
continuous process based on managing future change based on diagnosis, planning, and
evaluation. The organizational development change in the restaurants and leadership
impacted the overall climate, culture and business strategies of the company.
The three main concept of organizational development (OD) are:
1. Organizational Climate
It is defined as the mood or unique “personality” of an organization.
Some of the climate features and characteristics may be associated with;
• employee satisfaction, stress, service quality and outcomes and successful application
of new processes.

2. Organizational Culture
It is a system of shared assumptions, values, and beliefs, which governs how people
behave in organizations. These shared values have a strong influence on the people in
the organization and dictate how they dress, act, and perform their jobs.
The five basic elements of culture include:
• Assumptions
• Values
• Behavioral Norms
• Behavioral Patterns
• Artifacts

3. Organizational Strategy
It is the sum of the actions a company intends to take to achieve long-term goals.
Together, these actions make up a company’s strategic plan.
Strategic plans take at least a year to complete, requiring involvement from all company
levels. The improvement consists of four steps:
• Diagnosis
• Action Planning
• Intervention
• Evaluation

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. In today’s post we will focus on five benefits of OD from continuous improvement
to increased profits. The OD improvements are outlined as below:

1. 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. Organizational
development is a proactive approach that embraces change (internal and external) and
leverages it for renewal.

2. Increased communication:
One of the key advantages 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. Candid communication also leads to increased
understanding of the need for change within the organization. Communication is open across
all levels of the organization and relevant feedback is recurrently shared for improvement.

3. Employee development:
Organizational development focuses on increased communication to influence employees to
bring about desired changes. The need for employee development stems from constant
industry and market changes. This causes an organization to regularly enhance employee
skills to meet evolving market requirements. This is achieved through a program of learning,
training, skills/competency enhancement and work process improvements.

4. Product & service enhancement:

A major benefit 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. In this scenario, employee engagement is high
leading to increased creativity and innovation. Organizational development also increases
product innovation by using competitive analysis, market research and consumer
expectations and preferences.

5. 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. The culture
shift to one of continuous improvement gives the company a distinct advantage in the
competitive marketplace.