Characteristics of Organizational Development

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Management hires new employees during organizational development.
Management hires new employees during organizational development. (Image: Jupiterimages/Comstock/Getty Images)

An organization’s developers take months or even years crafting their company to fit a certain strategic design. In some cases they develop an entirely new organization and other times the development is the restructuring of an existing company. During the development, executives and managers work to execute the company vision at the operations level. This means that management must strengthen the company by strengthening individual employees and exemplifying the planned company culture.

Attracting and Retraining Intellectual Capital

Organizations in development typically assemble a highly skilled staff with strategical and specialized expertise. New businesses must act aggressively in the labor market to secure top professionals. Existing organizations usually retain many senior and skilled employees, while laying-off underperforming employees to make room for new talent. Executives assemble management teams with applicable experience and the ability to oversee development. The management teams focus on hiring employees with industry experience and values in line with the company’s culture and objectives.

Training Employees

Organizational development involves training employees. For new organizations, training entails employee acclimation as both supervisors and employees learn about the business’s processes, requirements and regulations. Existing companies undergoing development train employees in new skills, capabilities and methods. Development training moves from the top down in most organizations. Executives mandate advancements in employee skills and overall company culture changes that further the business’s strategic direction. These changes move from executives to senior management, to management teams, to supervisors and to employees, with each set of higher management instilling new skills and values into their subordinates.

Cultivating and Marketing Competency

New and developing organizations strengthen the traits for which the executives would like the company to be known. These famous traits are called “core competencies.” Popular core competencies include value, customer service, quality and innovation. Companies usually focus on one or two core competencies that represent the skill set and values of their employees. Once a company fully develops competencies, marketers use those proficiencies as advertising leverage. Well executed competencies can be claimed as competitive advantage and the company’s marketers may state so in advertisements that explain how and why the organization is superior to others in the industry.

Planning Future Strategy

Business strategists in developing organizations keep their eye on market trends and consider the eventual company direction. Development is just the beginning; businesses also may diversify by adding other product lines, globalizing or entering new markets. Eventualities aren’t necessarily the drivers of development, but the long-term strategic direction of the company is always a part of developmental concerns.

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