For any business whether small or large, its success would largely depend on organizational development. For large companies, they should really invest in organizational development since they have a lot of impact on the decisions the company makes. When your company is well structured with your employees motivated and well trained, then competency is earned as well as productivity. Your employees especially the top managers will always have the morale to perform their duties hence increasing the productivity of the company. Organizational development is also important as it also determines how fast or critical problems are solved. Any company that anticipates growth and increased productivity should consider organizational development because of the following benefits attached to it. One of the benefits of organizational development is that it helps the company to identify the crucial areas that require some changes.
There could be a project or operations within the business that requires senior management to make decisions. It is well known that change is very critical in the success of any company. The other benefit o organizational development is that it promotes the growth of the business. When companies have a proper organizations structure all the operations will run smoothly making it easy for customers to get or use the products and services. This enhances the profitability of the company and, therefore the growth of the business.
The other benefit of organizational development is that it helps in product innovation. It is always the success of a company whenever it comes up with a new product which could be widely accepted in the market. When you train and retrench your employees, they get more innovative. This will help the company to gain greater heights in the long run when a new product is introduced. Other than product innovation, the other reason as to why a company should consider organizational development is that it helps the company to explore new market opportunities. Whenever a company takes the new market opportunities, it would greatly increase its market share.
However, this can only be achieved through organizational development where the current organization structure should first be assessed to see if it can match or be proactive to the market opportunities. Capacity building is also another reason as to why organizational development could be ideal for any profit-making organization. When an employee remains developed and updates, he or she will easily adapt to the market changes in the environment. Just as many businesses would want to know their weaknesses and strengths, the capacity building would also help in identifying those areas that they can take advantage of whenever possible. The company would, therefore, allocate and use its resources efficiently.
Other than a capacity building, the other benefit of organizational development is that there is an increased value of the business or company. When the value of a business is increased, the stakeholders are happier since the returns will increase. The ultimate importance of organizational development is that it helps the company to gain a competitive advantage. This is because there will be increased performance. The company will be able to outshine its competitors in the market.