Organisational Design vs Organisational Development

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Do you understand the difference between Organisational Design and Organisational Development?

Organisational Development essentially is the process of improving your organisation’s effectiveness by managing the behaviours of your people.

Of course ‘improving effectiveness’ will differ from organisation to organisation. One may want to improve the quality of customer contact where another may want to improve the health and safety practices within the workplace. Regardless of the objectives, there are common traits of Organisational Development:

  • Changes to the strategy, structure or the process within the entire organisation, departments, or in the individual role
  • Providing a means to practice flexible change management when new information or requirements become available.
  • Implementing good practice around Organisational Development is critical in ensuring the growth of your organisation.

Organisation Design is the process of aligning parts of a business to position it to win in the marketplace, ensuring the business is able to deliver strategic or competitive advantage. It is putting together the formal and informal elements of a business including technologies, management principles and people processes.

Simply, Organisation Design is deciding the function and purpose of your business. Organisation Development is deciding how to maintain the purpose and function.