Organizational management is a concept that a company can use to improve specific operations. It is an ongoing attempt and effort to improve efficiency and productivity in an organization. It is guided by the need to create a nurturing atmosphere for employees in a company. Some of the elements of this concept include team-building, training, rewards based on performance, and creating an efficient communication system at the workplace. An organization can benefit from various advantages for applying this concept and can also suffer consequences that arise from its advantages.
Organizational development is most effective when the company wants to target individuals in the organization. Like Yaeger (2009) explains, “organizational development works with employees individually and in groups to facilitate stronger interpersonal relationships between team members”. Some of the most significant parts of an organization such as developing productive workgroups are covered when an organization applies this concept. Improving employee relations, not only improves productivity and lessens workplace absenteeism, but it also fosters an open environment where every employee can open up about their challenges. A good employer-employee relationship that can be achieved by utilizing organizational development principles also ensures that everyone understands what is expected of them and they have the resources needed to accomplish their duties.
A company that uses the organizational model also benefits from the extensive networking created among employees through team building and efficient communication. When major changes are required in product development and sustainability, the already established personal contact with employees makes it easy for the changes to be communicated. Stable methods of communication also make it easy for employees to adapt.
Organizational development can mean additional responsibilities for employees and management. This arises when there is a need to keep re-evaluating the needs of an organization, and if they need to do more to maintain regular communication. Other elements that come with a changed corporate structure, which is part of organizational development, such as creating workgroups and managing diversity, can be a challenge to human resource management. Organizational development is also time-consuming and can slow its productivity. The initial process involves surveying employees, gathering consumer feedback, evaluating the logistical process, and mapping the way forward can slow down the organization’s ability to make changes in a timely manner.
For effective and successful management change, distractions and impacts of change must be minimized. Change management, according to Kotter, J. (2011), is “an approach to transitioning individuals, teams, and organizations to a desired future state”. The process begins with a systematic diagnosis of the current situation. This allows for the determination of a company’s capability and capacity, as well as its current needs. It is also at this stage that the content, objectives, and process of change are established. According to Palmer, Akin and Dunford (2008), the process requires a deep understanding of the group’s dynamics and leadership skills.
The initial stage of change management allows an organization to measure and define its current position, stakeholder’s aims, business case, risks, costs, dependencies, cultural issues, and return on investments, among other aspects that define a business. At this stage, the company is also able to detail the kind of change that is necessary, how it will be achieved, when and how. This provides a company with a clear path going forward. Another advantage of change management is its ability to counter resistance from employees if implemented effectively. Since they have a clear picture of what is expected of them, employees are able to align themselves with the overall strategic direction of the company.
Change management requires the effort of every stakeholder in an organization. If employees are not happy with the changes, they can develop resistance. When such a situation is not dealt with effectively, it can stall or derail the project. Resistance from employees occurs when the intended changes are not communicated effectively, resulting in inaccurate rumors. In addition, a wrong change management plan can also negatively affect an organization. Without a plane to manage every step of the intended changes, the strategy can fail at crucial stages and bring down the entire process.
When comparing drivers for organizational change, it is accurate to say that nothing remains the same for long. This is especially so today and business gets more and more competitive. Both change management and organizational development allow a company to access where they stand and their needs, and also highly depends on employees to succeed. Organizational management, however, focuses more on every individual in an organization, while change management reviews the entire process of an organization from employees to systems.
While both change management and organizational development are essential tools to effect change and keep up with the rapid evolution of the business environment, change management allows for better and comprehensive results at the end of the process. Strategies for successful change, according to Yaeger (2009) must be educative, participative, directive, allow for negotiations and involve expert strategy, all tools of change management.
Kotter, J. (2011). Change management vs. Change leadership -- What's the difference? Retrieved Feb. 01, 2014, from: http://www.forbes.com/sites/johnkotter/2011/07/12/change-management-vs-change- leadership-whats-the-difference/
Palmer, I., Akin, G., & Dunford, R. (2008). Managing organizational change: A multiple perspectives approach. New York: McGraw-Hill Higher Education.
Yaeger, T. F., & Sorensen, P. F. (2009). Strategic organization development: Managing change for success. Charlotte, N.C: Information Age Pub.