6 Keys to Increase Profits Using Organizational Development – The Role of Human Resources

What is the role of Organizational Development, also known as Organizational Effectiveness, in Human Resources? Why is this so important to an organization? Will OD affect the profitability of your organization?

Organizational Development Defined

“Organization development is the process through which an organization develops the internal capacity to most efficiently and effectively provide its mission work and to sustain itself over the long term. This definition highlights the explicit connection between organizational development work and the achievement of organizational mission. This connection is the rationale for doing OD work.

According to Warren Bennis, organization development (OD) is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges.

Organization development, according to Richard Beckhard, is defined as: a planned effort, organization-wide, managed from the top, to increase organization effectiveness and health, through planned interventions in the organization’s ‘processes’, using behavioral science knowledge.

Warner Burke emphasizes that OD is not just “anything done to better an organization”; it is a particular kind of change process designed to bring about a particular kind of end result. OD involves organizational reflection, system improvement, planning, and self-analysis.

The term “Organization Development” is often used interchangeably with Organizational effectiveness, especially when used as the name of a department or a part of the Human Resources function within an organization.

Organization Development is a growing field that is responsive to many new approaches including Positive Adult Development.” (Quote From Wikipedia, the free encyclopedia.)

Human Resources and Change Management…

Positive change is necessary for any organization and the highest levels of management need to understand how to work with Human Resources (HR) to help bring about the positive changes that can move your business to higher levels of effectiveness and productivity. Strategic Planning, system improvement, and the successful implementation of the organization’s development plan are essential functions that can be developed and carried out through Human Resources. This process will have positive outcomes on your organization’s profitability and demonstrate the value of HR. As communication improves and the organizational plan unfolds, managers and frontline personnel can better understand their roles in your organizations strategic plan. “The Big Picture” will allow for a greater investment in, and motivation for, organizational success and leads to greater work satisfaction, reduced turnover, and increased profitability. HR can be the “Change Agent” and help to create “Buy in” for more of your organization’s key personnel.

What is the role of Organizational Development, also known as Organizational Effectiveness, in Human Resources? Why is this so important to an organization? Will OD affect the profitability of your organization?

As a Human Resource Professional use these 6 focus areas to enhance your organization’s profitability:

1. Improve organizational communication

2. Assist in management development, especially for new managers or technical personnel raised to project or team leadership

3. Enhance the Emotional Intelligence of leadership and managers

4. Organize mentors or executive coaching opportunities

5. Bring in the training that your organization requires including: EQ-emotional intelligence, leadership, communication, time management, etc.

6. Lead strategic planning, goal setting, implementation planning

Human Resource – Heart Of An Organization

Human resources is an umbrella term and has different functions under it. Human resources is divided into major specialized fields or departments viz, recruitment, payroll, statutory compliance etc. Each and every specialized field plays a very important role to make the human resource department of the organization more concrete. A prerequisite to work in such a department is to be graduated in the subjects of human resources. A person having a grasp on these subjects can make him/her a very useful and handy human resource personal in his/her career. The biggest challenge human resource professionals have to face in today’s competitive world is to find out effective measures to hire and retain talent. In short, we term this as “talent management”

Talent administration is about analyzing a person’s accustomed skills, talent, personality and traits, while alms him/her job. Each being has an assertive aptitude ill-fitted to a specific job profile. It is the job of an HR to appoint and identifies the aptitude of new hires and places them in the appropriate job in their organization. Aptitude administration is actual important for an organization, as globalization and antagonism accept added the charge to absorb acceptable performers in the organization.

It is not as simple as it sounds. Despite its importance, aptitude administration has two above challenges to face. The aboriginal is to acquisition a new aptitude to fit in to the appropriate job contour and description. Humans change jobs for affidavit such as ailing alive atmosphere, bigger opportunities, acceptable advantage package, and gaps amid the authoritative goals, claimed goals and bad management. It is actual important for the hr administration to appoint the appropriate aptitude for an able role in the alignment contrarily it will accord to added abrasion amount and ultimately to the accident of business.

Some of the able means or measures for a human resource administration to appoint and to absorb aptitude can be the following:

Organization should accommodate learning opportunities the aptitude they accept added again the approved plan routines.

Provide acceptable alive ambiance to the advisers as far as accessible to accomplish them feel adequate in the organization.

The lot of important for an alignment is to appoint appropriate people.

An alignment should angle durably on the promises they accept fabricated to the new talent.

Recognition of merit should consistently be there.

Today’s bloodthirsty and angry antagonism in the apple demands that organizations absorb absolute aptitude in the best acceptable address and environment, authoritative it capital for the human resource administration to advance aptitude administration effectively. It is benign to the alignment as able-bodied as for the accomplished advisers alive harder for them.

The Continuum for Human Resource Development

Organizations have a human resources department or someone who is responsible for the human resources function. Too often, this area of the organization is not given the important focus it should have. After all, having a skilled and productive group of humans is very important if the organization is to succeed.

Sometimes, when a position becomes vacant, the recruitment effort will be expedited in order to fill the position. Unfortunately, there are managers who would rather have a “warm body” in the position rather than nobody at all!

Human resource development in an organization needs to be thought of in terms of a continuum. The stages of the continuum include:

– Recruitment and Hiring

– Orientation and Initial Development

– Performance Management including Coaching and Counseling

– Promotion and Advancement

– Termination and the Exit Interview

Let us look at each of these stages in more detail:

Recruitment and Hiring

The basis of any recruitment effort ought to be a performance based job description. In as much detail as possible, what are the critical skills and experience needed to do the job? With a performance based job description in hand, the questions asked in the interview become job related.

If I am hiring someone to mow the lawn, I may ask “when you mow the lawn do you mow it horizontally and vertically, or diagonally?” If the job description says to mow it diagonally, I want to know this person’s experience with mowing lawn diagonally, if any. This is a far more important question to ask in the interview than “what would you like to be doing five years from now?”

By using a performance based interview, you can create a rating system that relates to the amount of experience the candidate has in relation to each of the performance questions asked. You also avoid asking questions that may be illegal (depending on your country) as: “What are your religious beliefs?”

Orientation and Initial Development

Once hired, the organization will want to get the person up to speed in doing the job as quickly as possible. There may be a formal orientation regarding policies and procedures, etc., and then actual introduction to the job where the manager or a skilled member may help the individual hired learn the job and performance standards to be met. As skilled as the person hired may be, it will take some time to get up to speed on the job. The amount of time will be related to the details and complexity of the job.

There should be no surprises. All facets of the job should be presented together with the specific and measurable performance standards. “Mowing an average of 500 square feet of lawn, per hour,” is much more specific than just “Mow the lawn.”

Performance Management including Coaching and Consulting

The supervisor or manager is responsible to coach and counsel the working member reporting to him or her. What parts of the job are being completed satisfactorily? What areas need improvement? How does the working member get along with those he or she is working with? What problems or difficulties are they facing in their work?

Working members will be more productive when they realize leadership is giving them the support they need. This includes job skill development, personal understanding and support and providing the necessary supplies and equipment needed to do the job.

Promotion and Advancement

Sometimes, organizations will promote from within. Other times they may favor recruiting from the outside, as a “fresh outlook” is needed in a job area. Nevertheless, the human resources effort ought to include working with members in exploring what other talents they can develop and what other skills they have that could be used in other positions in the organization.

“Succession Planning” is a human resources effort that can pay big dividends. When the organization has members who are prepared to step up when vacancies occur, or when expansion is indicated, it is ready to keep operations flowing productively.

Providing access to training and education benefits is another positive part of the developmental continuum, when the organization provides them. The working members will realize the organization has their interests at heart by providing opportunities for advancement and development.

Termination and the Exit Interview

The practice of always conducting an exit interview when someone leaves a job is very important. The exit interview should be conducted whether someone is being promoted to another job within the organization or leaving the organization. Properly done, the exit interview provides information on what can be done to improve the job and what can be improved to provide the support to do the job effectively.

When you apply each of the stages of the continuum for human resource development, you have a mechanism in place that not only helps the organization recruit and hire effectively, but also supports the working members once they become part of the organization. Having a continuum for human resource development sends a message that the organization cares about its members. By doing so, the organization reaps the benefits of a well developed and productive workforce.