Contents<\/em> Organizational development<\/a> (OD) is a strategic, comprehensive approach to guide an organization through changes in its operations, structures, or strategies to enhance performance and effectiveness.<\/p>\n\n\n\n OD uses a behavioral science-based methodology to assess and adjust the organization\u2019s systems or values. This aims to solve problems and progress toward short and long-term goals.<\/p>\n\n\n\n The reasons companies adopt an OD approach vary based on organizational needs and goals. Although each situation is unique, typical goals for OD include:<\/p>\n\n\n\n Organizational development focuses on the company, but many of its interventions directly involve people practices. Because HR oversees the implementation of these, the two functions overlap. OD goals cannot be achieved without engaging employees.<\/p>\n\n\n\n The need for collaboration means that OD teams are often positioned within the HR function. At the very least, the two must have a strong working relationship. In organizations that don\u2019t have a formalized OD function, HR professionals should have a good understanding of common OD techniques and recognize when they can apply them. Integrating an OD approach augments HR\u2019s strategic role in the organization.<\/p>\n\n\n\n What organizational development translates to in practice looks different for every company. What works for one business may not be relevant to yours. However, it can be beneficial to glean insights and inspiration from successful organizational development case studies.<\/p>\n\n\n\n The examples below are divided into four categories of OD interventions<\/a>: techno-structural, HRM, strategic change, and human process.<\/p>\n\n\n\n These are related to organizational structures and processes and the use of technology. They involve restructuring decision-making and procedures, changing how work is done, and developing new methods of engaging employees.<\/p>\n\n\n\n Examples of work and job design<\/u><\/strong><\/p>\n\n\n\n Multi-national vehicle manufacturer Volvo wanted to reduce turnover and absences by improving working conditions for manufacturing employees. Volvo learned how to better design its facilities and workflows through job enrichment programs<\/a>, such as management-employee councils, employee work groups, job enlargement<\/a>, and job rotation<\/a>. These improvements created a more satisfying environment for employees.<\/p>\n\n\n\n In 2022, Homerun, a small business hiring platform, transitioned to a 4-day work week<\/a> without reducing salaries or increasing hours on the work days.<\/p>\n\n\n\n Leadership believes people can work more efficiently in fewer days to maintain the same level of productivity<\/a>. They also expect to boost motivation and engagement, attract great talent, and reduce burnout and turnover.<\/p>\n\n\n\n Glassware manufacturer Corning had a mold machine shop struggling with cost overages and slow delivery. Redesigning<\/a> the shop\u2019s structure and workflow and training employees in communication and high-performance skills led to lower costs, increased profits, and better-skilled employees.<\/p>\n\n\n\n Initially, the founders of the instant messaging system WhatsApp had limited resources. To minimize costs, they outsourced<\/a> the app development. WhatsApp now has more than 2 billion active users.<\/p>\n\n\n\n Examples of organizational purpose and social impact<\/u><\/strong><\/p>\n\n\n\n In 2020, the LEGO Group toy company announced it would invest up to $400 million over three years into sustainability and social responsibility<\/a> enterprises. It is also pledging to switch to all sustainable packaging and find an alternative to the fossil-fuel-derived plastic used in its products.<\/p>\n\n\n\n Organic food producer Hope Foods<\/a> strives to manifest hope by offering food and messaging that nourishes the body, mind, and soul.<\/p>\n\n\n\n Its website promotes emotional wellbeing awareness by offering information, tools, and support. Hope Foods has also teamed up with a non-profit organization focused on suicide prevention and mental health education.<\/p>\n\n\n\n These take place within HR\u2019s domain and focus on performance management<\/a> to develop and support employees.<\/p>\n\n\n\n Examples of culture, employee engagement and experience<\/u><\/strong><\/p>\n\n\n\n Professional services company PwC has addressed the recent shift in employee expectations about how they want to work with a reimagined people experience.<\/p>\n\n\n\n PwC\u2019s My +<\/a> people strategy is based on wellbeing, total rewards<\/a>, leadership development, and connection via an employee\/alumni network. Leadership believes that they can hire and retain the best talent by offering flexibility and choice to support people\u2019s ambitions and wellbeing.<\/p>\n\n\n\n
What is organizational development?<\/a>
Real-life organizational development examples<\/a>
Organizational development best practices to implement<\/a><\/p>\n\n\n![](\"https:\/\/www.aihr.com\/wp-content\/plugs\/podcast-blog-ads-fade.jpg\")
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<\/div><\/div>\n\n\nWhat is organizational development?<\/h2>\n\n\n\n
Why do companies implement an OD approach?<\/h3>\n\n\n\n
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Real-life organizational development examples<\/h2>\n\n\n\n
![\"Examples](\"https:\/\/www.aihr.com\/wp-content\/uploads\/examples-of-organizational-development.png\")
<\/a><\/figure>\n\n\n\nTechno-structural interventions<\/h3>\n\n\n\n
1. Job enrichment at Volvo<\/h4>\n\n\n\n
2. 4-day work week at Homerun<\/h4>\n\n\n\n
3. Organizational redesign at Corning<\/h4>\n\n\n\n
4. Outsourcing by WhatsApp<\/h4>\n\n\n\n
5. LEGO\u2019s corporate environmental initiative<\/h4>\n\n\n\n
6. Hope Foods\u2019 commitment to wellbeing<\/h4>\n\n\n\n
![\"Manifesting](\"https:\/\/www.aihr.com\/wp-content\/uploads\/Hope-foods-1024x520.png\")
Human Resource Management interventions<\/h3>\n\n\n\n
7. Employee experience rebuild at PwC<\/h4>\n\n\n\n