Organizational development involves improving the company’s processes, culture, its employees’ skills – both management and leadership – and overall morale, management of innovation and so on. It is also closely related to the concept of the renewal. Just like with our personal lives, renewal within organizations involves development on four dimensions, including physical, spiritual, mental, and social/emotional:
- The physical dimension in the company’s assets
- The mental dimension is development of the company’s human capital
- The social/emotional dimension is human relations within the organization and how they are treated
- The spiritual dimension is employees’ need to find meaning in what they do
Successful companies are well balanced on these dimensions. Neglecting one will likely negatively impact the other. For example, some companies excessively focus on succeeding on only one dimension, economic (making money). Often, one could see negative synergies on the culture. This could express itself through protective communication, politicking, interdepartmental rivalry and masterminding. Another example of misalignment in these four dimensions is a company mostly focusing on the social dimension. It is likely to lose efficiencies and viability in the marketplace, because it has no measure of the effectiveness.
Other organizations may develop three of the four dimensions. For example, it may have good service, economic and human relations but under investing in talent development. The result may be excessive turnover and other cultural problems.