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What is organizational development? Structure and process

2 min read
264 words

Definition of Organizational Development

Organisational development is the process used to improve the overall effectiveness of an organisation through managing the behaviours of people within that organisation. It is important to have the systems in place to allow change to be implemented and planned effectively and that analyse real data, which can then be used to implement further change.

Is Organizational Development a confusing term?

Organizational development can be a confusing term, but it’s actually quite simple. It's a process that helps organizations, and the people within them, to grow and develop. It can be used to improve efficiency, and it can also help to improve employee engagement.

Organizational development is about improving the way that an organization works, and making sure that it’s as efficient and effective as possible. It might involve changing the way that a company operates, or it might involve making small changes to the systems that are already in place.

Organizational development can also involve changing the way that a company interacts with its customers or clients, and it can even involve changing the way that a company interacts with its employees.

Organizational Development Structure

The organizational development structure that you choose should reflect your organization’s culture. It should also be flexible enough to allow for the changes that are inevitable in the future. A good organizational development structure should allow for the following:

  • Organizational changes
  • Business changes
  • Leadership changes
  • Staffing changes

Organizational developent

The benefits of organizational development include the following:

  • Improved employee morale
  • Improved customer service
  • Improved leadership
  • Improved profitability
  • Improved employee retention
  • Improved productivity and efficiency

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HR by the numbers

74%

74% of companies say they are not keeping up with their company's demand for new skills.

Source: The Josh Bersin Company, corporate L&D study, 2026

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