Organizational development is the ongoing planned process of change used as a means of improving the organization’s effectiveness in solving problems and achieving its objectives. The first step in organizational development is to diagnose the problem(s). Indicators that problems exist, such as conflicts between diverse groups, the need for increased quality and productivity, low profits, and excessive absenteeism or turnover, lead management to call in a change agent to study the organization’s problems and needs.

A change agent is the person responsible for the OD program. The change agent can use a variety of methods to diagnose problems. Some methods are reviewing records, observing, interviewing individuals and work groups, holding meetings, and/or using questionnaires. After the problem has been diagnosed, OD techniques are used to solve it, as managers navigate the change.

There are five OD techniques: training and development, performance appraisal, survey feedback, force field analysis, and team building. Training and development is presented first because the other four techniques usually include training. After a position is staffed, there is usually a need to train the person to do the job.

Training is the process of developing the necessary skills to perform the present job. Development is the process of developing the ability to perform both present and future jobs. Typically, training is used to develop technical skills of nonmanagers, while development is usually less technical and is designed for professional and managerial employees. The terms training and development are often used together; they are used interchangeably as well.