7-Defining Organizational

Development and The Need for a

Specialists

- The hiring process Hiring process refers to the process of finding, selecting and hiring new
employees to a company. This process has three key segments: planning, recruitment, and employee
selection.
- OD entry
- Start up phase of a OD
consultation and training
- Working with the executive
team
- Implementing the success
models
- Team start-up
- All staff forum

What is the meaning of

Organizational
Development? is the study and implementation of practices, systems, and techniques that
affect organizational change, the goal of which is to modify an organization's performance and/or
culture. The organizational changes are typically initiated by the group's stakeholders. OD emerged
from human relations studies in the 1930s, during which psychologists realized that organizational
structures and processes influence worker behavior and motivation. More recently, work on OD has
expanded to focus on aligning organizations with their rapidly changing and complex environments
through organizational learning, knowledge management, and transformation of organizational
norms and values. Key concepts of OD theory include: organizational climate (the mood or unique
“personality” of an organization, which includes attitudes and beliefs that influence
members' collective behavior), organizational culture (the deeply-seated norms, values, and
behaviors that members share) and organizational strategies (how an organization identifies
problems, plans action, negotiates change and evaluates progress). [1]
Organizational Development Theory". Retrieved 2016-01-20.

What is the formula for

Organizational
Development
What is organizational Culture

Organizational culture is the collection of values, expectations, and practices

that guide and inform the actions of all team members. Think of it as the
collection of traits that make your company what it is. A great
culture exemplifies positive traits that lead to improved performance, while
a dysfunctional company culture brings out qualities that can hinder even the
most successful organizations.
Don’t confuse culture with organizational goals or a mission statement,
although both can help define it. Culture is created through consistent and
authentic behaviors, not press releases or policy documents. You can watch
company culture in action when you see how a CEO responds to a crisis, how
a team adapts to new customer demands, or how a manager corrects an
employee who makes a mistake.

https://www.achievers.com/blog/organizational-culture-definition/

What are the five basic

elements of culture in
organizations?
Recognition

Recognition is the single largest contributor to a winning company culture — and the biggest
driver of employee engagement to boot. Even in the most difficult times, like those
organizations across the world faced while adapting to the new normal, recognition makes team
members feel supported and part of a greater whole. Every employee wants to know that their
efforts are appreciated. When they do, key performance indicators like employee engagement,
productivity, and retention rise.
While some organizations treat recognition as something that is only required for special
occasions like anniversary celebrations, this approach fails to make an impact with employees.
Instead, work to instill a culture of frequent monetary and social recognition from the top
down and the bottom up. Recognizing specific behaviors that align with the culture you want to
see is another great tactic. Adopt an employee recognition platform that allows all team
members to interact with each others’ recognitions and award redeemable reward points, and
your company will be on track to establishing a winning employee recognition program.
Values
You should strive to make your company values a core part of your organizational culture.
Start by clearly laying out the values that make your company what it is. Use straightforward
language that all employees will easily understand. Then encourage team members to live
those values every day. Simply stating this will have little effect, of course, so ensure that you
start with training leaders and managers on how to exhibit your company values in their actions
consistently. Other team members will soon follow suit.
Employee voice

In organizations with great cultures, employees feel comfortable expressing their true thoughts.
Their employers can then analyze this feedback and apply the resulting insights to continually
improve business outcomes and the employee experience. Ensure managers know how
to encourage and accept feedback from employees while also providing confidential
channels for anonymous feedback like pulse surveys and always-on HR chatbots. Then use
your employee engagement platform to collate the data, see where opportunities for
improvement lie, and guide managers to act on the results collaboratively with their teams.
Leadership

As your leaders go, so goes your business. If your employees believe in their managers and
your company’s leadership, you’re set up for success. But if there’s a disconnect, watch out:
managers account for 70% of the variance in employee engagement. There’s truth to the
saying that employees don’t leave companies, they leave managers. Ensure your leaders act
as examples in all areas of your company, from recognition to wellness, and emphasize the
need to maintain two-way communication with all team members.
Belonging

A sense of belonging is the foundation of any great culture, but developing one requires a multi-
prong approach. Organizations prioritize the five pillars of belonging by making employees feel
welcomed, known, included, supported, and connected:

 Welcoming employees requires an amazing onboarding process coupled with

aligning new employees with your culture from the get go.
 Team members feel known when a company takes the time to solicit honest
feedback and then incorporate it into their organizational DNA.
 Diversity, equity, and inclusion (DEI) should be a priority in any
organization. Creating employee resource groups (ERGs) is an important part
of supporting DEI.
 When employees are empowered to do their best work, recognized for it, and
coached rather than micromanaged, they can’t help but feel supported.
 Genuine connections between team members can’t be forced, but a diverse
workforce, an accepting and psychologically safe work environment, and
team building activities are all great ways to set the stage for strong relationships.
What is organizational
Climate

Organizational climate refers to an employee’s long-lasting perception of the

working environment and culture of the business they work for. You can think of

climate as similar to personality: every person has a unique personality, and every

organization has a unique climate. This is reflected as a set of characteristics and

features perceived by employees. These influence employees’ behavior at work

across various dimensions such as relationships, autonomy, and organizational

structure.

A positive organizational climate increases organizational commitment – the bond

employees have with their organization.

Climate is not created overnight; rather, it is built up and shaped over a long period

through a collation of experiences and interactions. For example:

 whether an employee feels trusted to perform their role without

micromanagement,

 how managers and peers treat them,

 whether they feel like they’re growing and developing within the

organization,

 how effectively conflict is managed,

 how incentivized they are to perform,

  and much more.

Businesses can use organizational climate to gauge how employees feel about their

policies, practices, and culture and ensure these align with their overall vision, long-

term goals, and strategy. This is key to creating a workplace environment that your

employees love and thrive in. The happier they are, the more productive they will

be, and the stronger their results. 

Organizational culture vs. organizational climate

Although organizational culture and organizational climate are both concerned with

the characteristics of an organization, there are some key differences. 

Organizational culture centers on the values and behaviors of employees within a

company, whereas organizational climate focuses on the atmosphere created in

the company based on the culture.

Culture reflects the authentic image of an organization, while climate reflects

individuals’ perceptions regarding the quality and characteristics of the

organization.

Culture focuses on the macro vision of a company, while climate focuses on the

micro image

In other words, organizational culture is considered a relatively broad and loose

term entailing organizational behaviors of employees and leaders, as well as norms,

while organizational climate is a more narrow concept of how employees perceive

these behaviors and norms.

Image based on an article from Putter (2010).

What are the dimensions of

organizational climate?
Different dimensions comprise organizational climate.

There are a variety of approaches to defining the dimensions of organizational

climate in research. According to Hassanpour et al (2019), these include:

 Structural dimensions – Referring to organizational structure

  Interactive dimensions – How members of an organization interact with each

other

 Perceptual dimensions – How individuals perceive the climate within an

organization

Let’s have a look in more detail at some examples of organizational climate

dimensions as defined by Litwin and Stringer (1968).

Organizational structure
Structure forms the basis of interpersonal relations between those leading and

those being led. Who works under whom, and who is responsible for whom?

Centralization of authority has been proven to reduce participation from

subordinates in decision-making. On the other hand, decentralization encourages

it.

Conflict
The organizational climate depends on how effectively all types of conflict are

managed. Effectively managed conflict will create an atmosphere of cooperation

and facilitate mature conversations. Conversely, mismanaged conflict will create an

atmosphere of distrust and non-cooperation where gossip and slander are

common. 
Risk-taking
If an employee has the freedom to explore new ideas without fear of failure or

consequences, they won’t hesitate to act quickly or take calculated risks, leading to

an atmosphere of creativity and innovation. Whereas in a risk-averse organization,

a cautious approach stunts employee growth and minimizes innovation.

Individual responsibility
Responsibility refers to the amount of autonomy, freedom, authority, and power

employees have in the workplace. When given enough autonomy, employees will

get to define their work and activities, which also reduces the workload of

managers. In a climate of low responsibility and autonomy, employees are passive

and forced to work to a specific pre-approved structure and set of tasks. This often

leads to frustration.

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Rewards
If rewards are distributed fairly and purely based on performance and productivity,

employees will engage in healthy competition and want to work hard. Any bias in

the distribution of words will damage employee morale. 

Warmth and support

This dimension refers to the level at which employees help each other in their work

and also feel that they will get support from their colleagues and managers in

challenging times. A strong level of fellowship between employees leads to

confidence in sharing ideas and opinions without fear of ridicule or reprimand.

Meanwhile, Schneider and Barlett suggested broader dimensions or factors

affecting organizational climate:

1. Management support
 2. Management structure

3. Concern for new employees

4. Inter-agency conflict

5. Agent dependence

6. General Satisfaction

In general, there are many factors that affect organizational climate, including:

 Working with a competent manager

 Working with cooperative, agreeable employees

 Perception of risk

 Levels of conflict and how it is dealt with

 Having confidence in the appropriate records

 Employee responsibility

 Operating procedures

 The degree of centralization 

 Employee safety

 Physical space

 Organizational values

 Leadership and decision making styles

  The goals and mission of the organization

Impact of organizational climate

 It can operate as a constraint system – Organizational climate provides

employees with information on what kind of behavior will be rewarded or

punished. Therefore, it can influence the behavior of those who value the

rewards on offer. 

 It helps employees form a perception of the organization – In turn, this

perception influences an employee’s behavior. 

 It affects leader efficacy – Higher leader efficacy equates to

improved employee retention, customer happiness, and higher revenue. 

 It influences employee happiness and productivity – A positive organizational

climate can lead to happier, more motivated employees, improved job

satisfaction, and ultimately greater efficiency and productivity.

 It helps a business achieve its long-term goals – The organizational climate

has the power to impact your employee’s performance, your business

performance, and your ability to achieve goals. 

Types of organizational climate

Organizations tend to have a mix of several types of organizational climate rather

than just one, but there will often be one dominant type. 
Here are the common types of organizational climate:

People-oriented An organizational culture that has a core set of values that focus predominantly on caring for its
climate employees and their results.

Rule-oriented An organizational culture providing a set of rules and structure and places high importance on
climate following these rules and attention to detail from everyone.

Innovation-oriented An organizational culture that consistently develops and introduces new ways of working and
climate processes (and encourages employees to do the same) to achieve innovative results.

Goal-oriented An organizational culture that places preference on values and refining details of processes to
climate achieve the desired result.

How to improve organizational

climate: What HR can do
1. Determine the state of the current organizational
climate
An organizational climate assessment is vital if you want clarity on where your

organization stands today. An organizational climate survey will show you what

initiatives are having a positive impact on your climate. You will also get insights

into the ones that aren’t having the desired effect you’re looking for. This can help

you improve and shape your organizational climate. 

Regular organizational climate questionnaires, where honest feedback is

encouraged, can help you discover the true state of your current climate. Then you

can take action based on the results. You may also want to encourage feedback in

team meetings and one-on-ones. However, make sure your employees know this is
a safe space to voice their true feelings and any concerns without fear of negative

repercussions if they do. 

2. Translate company values and goals into desired

behaviors
Many businesses have a set of clearly defined organizational values, yet many of

their employees fail to embody these. 

Why? 

Because although they might be written on posters or mounted on a large wall-

plaque somewhere, those values are not woven into everyday culture. If you want

employees to live your values every day, they need to understand what they equate

to in terms of behavior.

The solution?

Train managers to identify the values they’re looking for in terms of behavior. Give

feedback to their team that focuses on a task as well as how someone operates

day-to-day.

For example, let’s say one of your values is agility. Ask your managers to define

what this looks like for them in action. What would a person be doing and saying if

they were demonstrating agility in their role? Perhaps agile means being able to

move from one project to the next without wasting time and learning the ropes

quickly. In that case, the behaviors they might look for could include consistently
meeting deadlines without compromising the quality of work and having a “can-do”

attitude with new projects and tasks.

Focusing on behavior helps all your employees experience your culture at work

every day, leading to higher levels of motivation. It also lets everyone know the part

they can play in helping the organization meet its goals.

Our Organizational Development Certificate Program will equip you with the skills

and knowledge you need to design your organizational structure and culture in a

way that maximizes organizational effectiveness and improves organizational

climate.

3. Improve the working environment

Another way to improve organizational climate is to assess your current workspace,

whether it’s a central office or the individual workspaces of your remote employees.

A comfortable workspace that stimulates creativity, and has all the tools an

employee needs to perform their job will significantly improve your climate. 

It’s all too easy to assume this is about spending a small fortune on automatic

doors and sleep pods, but it’s less about luxury and swagger and more about

creating a space conducive to work that is inspiring to be in. Pay attention to how

furniture is arranged, the colors, and the equipment you have. All of these affect

your employee’s experience at work. If you have a fully remote team, offer them a

guide or something in their welcome pack that helps them set up a beautiful

workspace at home. 
4. Strengthen employee recognition
For an employee to see an organization in a positive light, they need to be

consistently recognized and valued for their work, dedication, and achievements;

from the top down and from their peers. 

Recognition can take the form of a public shoutout, a small gift or coupon,

additional leave, a monetary bonus, or an award. For example, you might start an

awards system where each month, one of your employees gets crowned “employee

of the month” for going above and beyond for the organization. Although this may

seem small, not only does this help the employee feel recognized and appreciated

by their organization, it can also inspire other colleagues and create healthy

competition. 

5. Advance your leadership

The perception of leadership in your organization will also greatly influence the

climate. It’s therefore crucial that your organization has a leadership style that

supports your mission and goals and promotes transparency and decision-making.

When hiring leaders, look for professionals who have the power to inspire others

and tap into their full potential, and foster teamwork. Offer regular training to

ensure leaders are all on the same page and have the skills and tools to operate in

the desired manner. 

One of the primary tasks of any leader is to ensure the organizational climate

continues to go from strength to strength. For this reason, strong leadership is key

to a positive organizational climate.

6. Promote autonomy
Every employee must have a clear understanding of how they individually

contribute to the organization’s goals and how they create value. Any changes in

the company’s mission and direction must be communicated to the entire team. 

Employees must also be able to make decisions on their own, take calculated risks

when opportunities arise, and have support from management to do so. When

employees are encouraged to think for themselves and have a clear set of

responsibilities and freedom, they will be happier and more motivated at work,

which will have a positive effect on your organizational climate. 

7. Focus on inclusion and belonging

Organizations that create an inclusive environment in the workplace are likely to

see stronger team morale and employees who stay with the company longer. This

ultimately has a positive impact on organizational climate. 

Ensure that your managers lead by example and encourage inclusion and

teamwork. Have them regularly offer feedback to employees on performance. Let

them know what they’re doing well and where they can (and should) improve. Be

constructive and provide clear actions. This will lead to a stronger, cooperative
team and a healthier bond between the organization and its employees, which is

vital for growth.  

A final word
Organizational climate is a complex phenomenon that you need to understand

from multiple perspectives, including its dimensions and impact. Although

improving your organizational climate is a long-term game and investment of

resources, your business will reap the benefits in the long run.

Shani Jay

Shani Jay is an author & internationally published writer who has spent the past 5 years

writing about HR. Shani has previously written for multiple publications, including

What are the objectives

of Organizational
Development?
is to improve the organization's capacity to handle its internal and external functioning and
relationships. This includes improved interpersonal and group processes, more effective
communication, and enhanced ability to cope with organizational problems of all kinds. It also
involves more effective decision processes, more appropriate leadership styles, improved skill in
dealing with destructive conflict, as well as developing improved levels of trust and cooperation
among organizational members. These objectives stem from a value system based on an optimistic
view of the nature of man—that man in a supportive environment is capable of achieving higher
levels of development and accomplishment. Essential to organization development and
effectiveness is the scientific method—inquiry, a rigorous search for causes, experimental testing of
hypotheses, and review of results
Baligh, Helmy H. (2006). Organization Structures: Theory and Design, Analysis and Prescription

 Fuqua School of Business, Duke University, USA

Helmy H. Baligh
F. Can Reflect
How adequate are you in
managing organizational
development in the public
sector? What do you do to
achieve effectiveness? What
are your perceived difficulties?
G. Tools for Structural Change
H. Management of
Organizational Change

Organizational change refers to the actions in which a company or business

alters a major component of its organization, such as its culture, the underlying
technologies or infrastructure it uses to operate, or its internal
processes. Organizational change management is the process of guiding
organizational change to a successful resolution, and it typically includes three
major phases: preparation, implementation, and follow-through. (Tim Stobierski is
a marketing specialist and contributing writer for Harvard Business School
Online.)

- Development of matrix of
management system

Understanding Matrix Management

Matrix management is a form of organizational structure in which
employees report to multiple bosses rather than one. It does away with
the one-boss, vertical system that most firms use and brings about a
system where employees have multiple superiors along both functions
and project lines. 
With a matrix management system, employees in different functional
divisions are distributed into product/project teams where they get to
work with colleagues from other functional divisions. For instance, in
a particular project/product team, we can have employees from
engineering, sales, customer success, working together to deliver the
product or project.

The most significant argument in favour of matrix management is that

it offers more efficiency than the traditional vertical management
structure. Under a vertical management structure, there’s the CEO at
the top, supervisors in the middle section, and at the bottom, we have
the regular employees in various divisions who report to one
supervisor. But, how’s matrix management structure more efficient?

How Matrix Management Works in

Practice
The efficiency of matrix management significantly manifests in how
it’s practised.  Typically, companies that adopt the matrix
management style are structured to work along both functional and
product/project or geographical lines. Here. we’ll be using the
hypothetical company ABC Plc, a semiconductor maker with
headquarters in London.
 Project/Product
ABC Plc has a number of projects in the pipeline, including  a new
blockbuster graphics card project. So, each project will have Project
Teams headed by a Project Manager, with team members drawn from
various functional areas of the company namely, engineering, finance,
sales and marketing, procurement and supplies etc. 

The matrix management will involve each employee having at least

two managers - the head of their individual functional divisions, and
the Project Manager. For instance, for the blockbuster graphics
project, the employee from finance will report to both the head of
finance and the Project Manager for the graphics card. 
 Geography

Although less common, the matrix management structure may also be

applied in companies that are spread across multiple geographies.
Assuming that ABC Plc has regional offices across the country, with
one in Liverpool, the HR manager will report to both the superiors in
Liverpool as well as those at the headquarters in London.

Advantages of Matrix Management

Structure
Companies adopting the matrix management organizational structure
have some benefits to look forward to, and these include:
1. Combination of Skills and Competencies

When different people from diverse departments work together, it

helps solve problems in a more efficient way. It does lead to overall
development of employees as each one is exposed to different
functions apart from their primary job. This helps them pick up more
technical and soft skills. 

2. Collaboration and Cooperation

The matrix management structure has the potential to boost employee

morale as employees work with one other to deliver on certain goals.

3. Innovation

Contrary to popular opinion, matrix management actually fosters

innovation. Project teams will comprise employees with diverse
backgrounds, who can view problems in different ways. This infuses
dynamic thinking into the product or project development process.

4. Flexibility
Once the project is done or the product phased out, employees may be
reassigned to other tasks or projects. This will prevent monotony, and
bring about flexibility in the work employees get to do.

Disadvantages of the Management

Adopting the matrix management organizational structure has some
downsides, some of which are outlined below:

1. Potential Loss of Accountability

When a firm adopts a system in which employees have to report or

work with multiple bosses, there may be accountability issues. In the
normal, traditional hierarchical structure, the manager of a particular
functional division is easily held accountable for the division's
shortcomings. For instance, the HR Manager will be held responsible
if the division performs below expectations.

However, under the matrix management structure, there are two or

even more managers, and it quite becomes difficult to place
responsibility squarely on anyone or any division.

2. Dual-reporting and Potential Conflicts

Another issue that may come up in a firm with the matrix
management structure is that double reporting may lead to conflicts
and confusion. Employees have to deal with different bosses with
different styles of doing things.

3. Slower decision-making process

With the matrix management system, decisions have to pass through

two or more managers. This can considerably slow down the decision-
making process, and affect the rate of work delivery. 

- Evaluating the implementation

of success plus OD
consultations
- Lessons learned from a “Work
in Progress”