History Overview
Organizational development and organization design are practices used to transform a company with a focus on high performance and sustainable development. ODD as a general phenomenon appeared only in the late ’90s because researchers first paid attention to different elements (Anderson, 2018). Organizational development emerged after much psychological research covering the impact of structure on employee behavior and motivation. Psychologists found that human resources are the backbone of an organization more than solid leader. Levine Kurt lay down the idea of researching a company’s ecosystem-based on dynamic waves in the team. His experiments provided clear examples of how proper planning can positively influence employees’ perceptions of work (Cummings et al., 2016).
Organizational design became the second stage of transformation: motivated and committed employees became more enthusiastically involved in learning the policies and structure of the metrics (Pertusa-Ortega et al., 2018). The organization’s hard elements originated under Fayol’ influence; he explained the need for separation of positions and authority. The competent management functions pushed leaders to reconsider the principles of feedback, making adjustments and deviations as a regular part of the business. Instead of being strictly confined within a framework, organizational design links employees and leaders.
ODD’ Characteristics: Models &Theories
Organizational models have become a way to combat market monopolization and develop healthy competition. Automation of business processes and pressure from competitors force companies to look for new ways to design workspaces to improve their operations. Various models and theories can achieve high performance based on the ODD approach. The purpose of organizational design models is to diagnose the current state, identify development prospects, and specify current goals and culture (Pertusa-Ortega et al., 2018).
McKinsey’s 7 model is an analytical complex model covering both hard and soft elements of business systems. Each piece is connected to the other, making it possible to develop several branches at once (Kocaoglu and Demir, 2019). A company can strengthen one of the seven components with a differentiated approach or conversely weaken the focus on the other. The model allows for assessing and reallocating resources from one element to another. The advantages of the model are its versatility and the ability to combine critical structures. However, the disadvantages are significant: the model does not address change management but only specifies the direction.
Among the transformational models, it is worth noting the Burke-Litwin technology, which demonstrates various change factors and ranks them in terms of importance. It can be represented conventionally in a diagram, where the most critical factors are at the top, and the least important are at the bottom (Satrevics, 2014). This technique reveals several groups of influencing factors: external factors, strategic factors (leadership and strategy), operational factors (structure, management, policy), and individual factors (motivation, values, and needs). The model states that all aspects are integrated and a change in one of them will eventually affect the whole system. The roots of organizational transformations can be found in the external environment (Pertusa-Ortega et al., 2018). Critical factors in organizational success are often influenced by changes outside the organization. The model’s advantages are the consideration of soft and hard elements, which allow one to analyze the relationship between strategies and individual skills. The disadvantages are not significant: at first, the model seems inaccessible and complex, but gradual implementation can make a miracle with the company’s status.
The agile organization model is company transformation practice that takes the traditional type to the next level and captures new market niches. At present, there are not enough brutal practices in company management because they significantly limit the ability of employees to transform the space (Anderson, 2018). Instead of releasing new products, traditional companies prefer to follow an understandable path that increasingly loses relevance. The model suggests four stages of transformation: breaking down boundaries, network disruptors, systems thinking, and changing conditions. The result is effective teamwork and a changed vision for the organization. The model’s advantages are making decisions on a specific issue and eliminating bureaucracy with the development of autonomous teams. The disadvantages of the flexible model can be described as a long time and the need to invest resources in retraining managers.
Among ODD theories, d
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