What Is Organizational Development? - Executing Organizational Change

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  • 0:08 Organiational Development
  • 1:16 Organizational Climate
  • 2:09 Organizational Culture
  • 3:08 Organizational Strategies
  • 4:55 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Organizational development is the process of helping organizations improve through change in policies, power, leadership, control or job redesign. This lesson explores organizational climate, organizational culture and organizational strategy, the three main sections of organizational development theory.

Organizational Development

Organizational development consultant Lenny Bruce has just been hired to help Intestinal Distress Taco restaurants transform into Burger Queen Stores. 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 such as Lenny.

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. Let's take a closer look at how Intestinal Distress Taco restaurant chain morphed into the Burger Queen stores. The organizational development change in the restaurants and leadership impacted the overall climate, culture and business strategies of the company.

Organizational Climate

Organizational climate has a big impact on the organizational development process. Organizational climate refers to the overall mood of the company due to employee attitudes and beliefs. The mood or personality of the company can drastically affect employee satisfaction, motivation, and productivity. The elements of organizational climate that can be cultivated and changed if needed are leadership roles, conflict resolution, etc. For example, Intestinal Distress Taco's organizational climate was very negative, as sales were declining and managers were under enormous pressure for profits. The new climate under the Burger Queen leadership was positive, energetic, and uplifting. This had a dramatic effect on the entire company as employees were scared of the change but excited to have another chance at success.

Organizational Culture

The second key idea of organizational development has to do with organizational culture, which deals with the norms, values, and behaviors of the employees. Organizations can have cultures that are family-oriented and supportive, high-risk and entrepreneur-like, or competitive. Certain types of cultures work best for certain organizations.

Sometimes cultures need to be improved upon or changed. For example, Lenny the consultant realized that the old culture at Intestinal Distress Taco was very family-oriented. Employees were more consumed with cultivating friendships and work relationships. There was a company softball team and monthly corporate barbecues. The new management team that was hired for Burger Queen is made up of entrepreneurs who enjoy high-risk business situations. Lenny has expressed concern about how this will impact employees used to more conservative management and recommends new strategies to deal with potential issues.

Organizational Strategies

The final piece of organizational development deals with organizational strategies. These strategies are the core of the development process as they help companies promote change. Diagnosis, action planning, intervention, and evaluation are the four steps in promoting change.

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