If you are not part of a fortune 500 organization or responsible for one, you may not know that one of the functions of Human Resources is Organizational Development (OD). However, if you own or manage a business, no matter how small, you need OD.
Why You Need Organizational Development
For an organization to grow and develop, it must maximize organizational effectiveness through the best use of its resources. The definition of Organizational Development is the practice dedicated to expanding the knowledge and effectiveness of people and the organization to accomplish more successful organizational change and performance through planned interventions. The objective of these interventions are as follows:
- Increase productivity (efficiency and effectiveness) & customer satisfaction
- Increase employee’s satisfaction with the quality of their work life (increases productivity and employee longevity)
- Provide ability of the organization to revitalize and develop itself over time (grow and compete within industry)
- Clearly define the organization and everyone’s role within the organization (better implementation of processes and outputs and provide accountability)
- Focus the organization as a whole to the organization’s business plan or goals
REAL HR Delivers Organizational Development
As a business owner or Chief Operating Officer you may already be doing exactly that. However, if you are responsible for more than OD you have your plate too full and may not be able to see the forest for the trees. A real Human Resources professional is what you need.
When I work with people not exposed to the corporate business world, I find that they only think of HR as handling recruiting, payroll (sometimes) and benefits administration. If there isn’t a big turnover or benefits are not being offered, they likely get along without HR completely. I am hoping that business owners also understand that HR functions as a protection and should be ensuring and implementing legal compliance for the business as an employer at the absolute minimum. That’s usually the limit of the HR function for most small businesses and why most have a non HR professional handling the company’s HR function. No legal complaints – no harm no foul as they say.
However, as I pointed out previously, HR is more than that. The bottom line is you are responsible for your organization, if you are focused on its sustainability and its growth, you need to implement proper Organizational Development strategies to do that. You may not know how to legally set up a business, so you sought out a lawyer to help you. When you need to deal with the financial and tax aspects of the business you go to your accountant or CPA. Then it only stands to reason to seek a real HR professional to guide and assist you in Organizational Development.