ORGANIZATIONAL

DEVELOPMENT

CONRAD ESGUERRA
Objectives:

Terminal Objective:

Discuss what Organizational Development is and its Effectiveness.

Specific Objectives:

• Analyze the different organizational effectiveness model.

• Identify the different organizational problems and issues that might arise in
an organization.
• Understand the nature and characteristics of Organizational Development
Organizational Effectiveness
• The ultimate goal of organizational
development is to increase the organization’s
competitiveness in order to create a business
that wins in the marketplace. This can be done
through increasing profits, margins, market
share, morale, cultural values, or other sources
of competitive advantage.
 Seven
Organizational
Effectiveness
Model
 1 2 3
Goal Approach Internal Process Resource-based
Model Model Model

4 5 6
Strategic Stakeholder Competing
Constituency Model Values Model
Model

7
Abundance
Model
1. Goal Approach Model
• Traditional way of measuring the
effectiveness of an organization.
• This type of approach is less actionable as
it focuses on the output and does not
include the information about input or
process.
2. Internal Process Model
• Focuses at what happens inside the organization
rather than its input or output.
• The best-known example is the Lean Process
Approach, which focuses on continuous improvement
and efficiency. The drawback is that the focus is often
more on efficiency than on effectiveness and that the
focus is more on inward processes than on outward
opportunities.
 3. Resource-Based Model
• Focuses in the input to measure effectiveness.
• Acquiring and exploiting resources that are rare
and valuable can provide competitive
advantages.
4. Strategic Constituency Model
• Assesses effectiveness by measuring the degree
to which it satisfies those in the environment
who can threaten the organization’s survival.
• Each constituency has a degree of power and
pursues different goals.
5. Stakeholder Model
• This model measures the effectiveness
based on the degree it satisfies its
stakeholders as well as those who are
indirectly affected by the organization, but
does not have power over it.
6. Competing Values Model
• Based on Cameron and Quinn’s competing
values framework.
• This approach measures effectiveness by
the ability of an organization to
simultaneously promote competing values.
7. Abundance Model
• Equates the effectiveness of an
organization to unleashing the highest
potential of human systems.
• This is about bringing forward positive
values and virtuousness.
• It accommodates balance between positive
and negative values to be highly effective.
Organizational
Problems and
Issues
Organizational
Problems
1. Awareness
• The senior leaders team lacks alignment;
they operate in silos and don’t collaborate
effectively. 
• There’s tension and mistrust between
them that radiates throughout the
organization.
2. Communication
• Leaders doesn’t effectively communicate
information, priorities, expectations or
changes within the rest of the organization
in a timely manner, or at all.
3. Development
• There is a lack of opportunities for
professional growth, and employees can't
see a clear career path forward.
• No succession plan exists for current
employees, nor onboarding plans for new
hires.
4. Interpersonal
• The culture is missing a system, process
or support for resolving conflicts and
disagreements between leaders and
teams.
5. Influence
• Departments, divisions, business units,
offices or teams work in silos by function
and don’t know what other areas of the
organization are doing or how to leverage
them.
6. Culture
• Employee engagement and morale are
low.
• Motivation and engagement are missing.
• People do not feel empowered to speak
truth to power, or to lead the charge to
make an improvement in their
circumstances
7. Trust
• Different levels of leaders don’t trust other
levels.
• Different divisions or departments don’t
trust other divisions or departments.
8. Integrity
• Leadership behaviors are not aligned with
stated leadership values or intended
corporate culture.
9. Safe Environment
• Middle and lower level leaders,
employees and staff are not empowered
or don’t have a way to safely provide
feedback or express concerns to senior
leaders.
• Leaders are not open to hearing new
ideas and approaches.
10. Accountability
• There is a lack of accountability systems
and structures across the organization.
What can you do about it now?
1. Cultivate strategic relationships of
influence.
2. Raise the professional maturity of any
team where you see conflicts.
3. Synthesize systems, strategies, ideas and
functions.
4. Hire a team of master executive coaching
and leadership experts.
Organizational
Issues
 1 2 3
Turnover Productivity Process
Management

4 5 6
Role Customer Innovation
specification satisfaction and
relationships

7
Teamwork
1. TURNOVER
• Refers to an organizational issue where
employees leave their companies
frequently and at high volumes.
• To compensate, an organization has to
regularly hire new people to fill those roles.
REASONS FOR HIGH TURNOVER RATES
• Employees are discontent with management
and their leadership officials.
• Dissatisfied in their work.
• Staff members are underpaid.
• Employees don't believe their employer hears
their voices, ideas and concerns.
• Team members don't see a path for growth
within the company.
HOW TO OVERCOME THIS CHALLENGE?
• It is beneficial for managers to listen to their
employees concerns and seriously consider
where they can change or improve.
• Taking actionable steps to meet the concerns
of your team members can help increase
employee retention rates and improve
productivity.
2. PRODUCTIVITY
• Productivity refers to the volume of work
employees complete successfully and
according to schedule. Having high
productivity means a company is meeting
their production quotas, business
operations are on track and the business is
fulfilling all orders on time.
REASONS FOR PRODUCTIVITY LOSSES
• Teams are understaffed.
• Employees lose interest in the work or get
distracted.
• Sudden structural and procedure changes can
be jarring.
• Stress inducers like unrealistic deadlines and
poor leadership can make working
challenging.
HOW TO OVERCOME THIS CHALLENGE?
• Managers may benefit from hiring on
additional staff
• Provide employees with breaks so they
can relieve stress
• Slowly ease your team members into
upcoming changes
• Set deadlines that are realistic and
achievable.
3. PROCESS MANAGEMENT
• Managers use process management to
ensure that their team is following the best
processes for completing their work in an
efficient and timely manner.
REASONS FOR POOR PROCESS MANAGEMENT
• Managers establish processes that are
convoluted and complicated.
• Company leadership isn't flexible and ignores
feedback from employees.
• Managers lack an in-depth understanding of
their team's work and what they need to
accomplish it.
HOW TO OVERCOME THIS CHALLENGE?
• A manager should work closely with their
team, understand their needs and take
steps to implement processes that allow
them to do their work simply and
efficiently.
4. Role specification
• Means hiring the most qualified person for
a job and assigning work to the most
appropriate employee.
•  A lack of quality role specification can
disrupt workflows, reduce efficiency and
decrease communication between team
members.
REASONS FOR ROLE SPECIFICATION ISSUES

• Managers may show biased behavior towards

or against particular individuals.
• A hiring manager doesn't take the time to
interview a candidate thoroughly.
• Leadership may not understand their team's
capabilities and particular strengths.
• Nepotism can sometimes lead to an
unqualified new hire.
HOW TO OVERCOME THIS CHALLENGE?
• It is important that managers learn about the
skills and interests of their team members.
• It is also essential that managers conduct a
thorough hiring process for new candidates to
hire people that suit company openings.
• They may enlist the help of recruiters who are
more adept at finding qualified candidates
5. CUSTOMER SATISFACTION AND RELATIONSHIPS

•  Satisfied customers contribute to increased

revenue and consistent purchases as a source of
income.
• Customers may become unsatisfied with an
organization due to poor customer service or
poor quality of a company or service.
HOW TO OVERCOME THIS CHALLENGE?
• Possible solution is to retrain employees
on how to provide the best customer
service and engage with consumers
through surveys, social media and market
studies.
6. Innovation
• Is how companies develop new ideas and
expand their products and services.
• An organization that is innovative opens
itself up to new opportunities, integrates
updated technology tools and becomes an
industry leader.
REASONS FOR LOW INNOVATION AND
STAGNANT GROWTH
• They have a company culture that stifles
employee creativity.
• The company uses outdated business
practices that don't facilitate innovation.
HOW TO OVERCOME THIS CHALLENGE?
• Encourage innovation in your organization
organizations by listening to the ideas of your team
members.
• Creating a culture where they feel comfortable
being able to openly and freely express their ideas.
• Thoroughly analyze current business practices and
make necessary changes so new ideas and
innovations can easily integrate into the company's
processes.
7. Teamwork
• Involves employees working together to
achieve a common goal.
•  Effective teamwork increases productivity,
revenue and makes everyone's job easier to
complete.
TEAMWORK CAN FALTER WHEN
• Team members have conflicting personality
traits.
• Some individuals contribute more to projects
than others.
• Managers show favoritism towards specific
people.
• The organization has poor communication
channels.
HOW TO OVERCOME THIS CHALLENGE?
• Try facilitating team meetings so everyone can
share their concerns and craft solutions.
• Avoid showing favoritism.
• Conduct individual meetings with each team
member.
• It is important to have the involved parties discuss
their issues civilly so they can determine a way to
work together peacefully.
Organizational Development (OD)
• It is a critical and science-based process that
helps organizations build their capacity to
change and achieve greater effectiveness by
developing, improving, and reinforcing
strategies, structures, and processes.
• Critical and Science-Based Process
OD is an evidence-based and structured
process. It is not about trying something out
and seeing what happens. It is about using
scientific findings as input and creating a
structured and controlled process in which
assumptions are tested.
• Build Capacity to Change and Achieve
Greater Effectiveness
OD is aimed at organizational effectiveness. It
has a number of (business) outcomes that
includes financial performance, customer
satisfaction, organizational member
engagement, and an increased capacity to
adapt and renew the organization.
• Developing, Improving, and Reinforcing
Strategies, Structures, and Processes.

OD applies to changes in strategy, structure,

and/or processes. This implies a system
approach, where we focus on an entire
organizational system.
Organizational Development in HR
• It involves changes and improvement of the
processes and structures that are part of HR’s
responsibility. These include processes and
systems related to performance management,
talent management, diversity, employee
wellness, and so on.
 Nature /
Characteristics of
Organizational
Development
Nature / Characteristics of OD
• OD is an interdisciplinary and primarily
behavioral science approach.
• One of the primary goal of OD is to improve
organizational effectiveness.
• It is a planned and long-range strategy for
managing change.
Nature / Characteristics of OD
• It is an education-based program designed to
develop management practices that result in a
healthy organization climate that rewards
healthy behavior.
• The target of the change effort is the whole
organization, departments, work groups, or
individuals within the organization.
Nature / Characteristics of OD
• Data-based approach to understanding and
diagnosing organizations.
• It involves planned interventions and
improvements in an organization’s processes
and structures. It is primarily driven by action
research model (ARM).
 ACTION
RESEARCH
MODEL
Wrap Up!
• Organizational effectiveness is the degree to
which an organization achieves the goals it set
out to achieve.
• There are 7 common organizational
effectiveness models – goal model, internal
process model, resource-based model, strategic
constituency model, stakeholder model,
competing values model, and abundance model.
Wrap Up!
• The common challenges found in organizations
and teams – awareness, communication,
development, interpersonal, influence, culture,
trust, integrity, safe environment, and
accountability.
• Seven most common issues in an organization are
turnover, productivity, process management, role
specification, customer satisfaction and
relationships, innovation and teamwork.
Wrap Up!
• Organizational development is a critical and
science-based process that helps organizations
build their capacity to change and achieve
greater effectiveness by developing, improving,
and reinforcing strategies, structures, and
processes.
Wrap Up!
• Organizational development in HR involves
changes and improvement of the processes and
structures that are part of HR’s responsibility.
• HR focuses specifically on people practices, OD
takes a more holistic approach, looking at
individuals, teams, and organizational systems.
Wrap Up!
• Planned interventions and improvements in an
organization’s processes and structures is
primarily driven by action research model
(ARM).
1. Entering and Contracting 6. Leading and Managing
2. Diagnostics Change
3. Data Collection and 7. Evaluation and
Analyzing Institutionalization of
4. Feedback Change
5. Designing Interventions
References
• Vulpen, EV. (2020). A practitioner’s guide to organizational
effectiveness. Retrieve from
https://www.aihr.com/blog/organizational-effectiveness/
• Vulpen, EV. (2019). What is organizational development? a complete
guide. Retrieve from
https://www.aihr.com/blog/organizational-development/#Interventi
ons

• Herrity, J. (2022). 7 organizational issues and ways to overcome

them. Retrieve from
https://www.indeed.com/career-advice/career-development/organiz
ational-issues
References
• Pomerantz, S. (2017). How many of the top 10 most common
organizational challenges plague your company. Retrieve from
https://www.forbes.com/sites/forbescoachescouncil/2017/02/24/h
ow-many-of-the-top-10-most-common-organizational-challenges-pl
ague-your-company/?sh=549be15c1e79

• McLean, GN. (2006). Organization development principles,

processes, performance. California: Berrett-koehler publishers, inc.
https://www.bkconnection.com/static/mcleanexcerpt.pdf