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Organizational And Employee Development – Understanding The Correlation 


In this rapidly evolving technological world, every business, despite its size, must focus on development. The unpredictable economic conditions throughout the globe call for adequate planning for developmental activities. For an organization to sustain the market competition and shifting paradigms of the economy, it must identify the prospective developmental areas. One of the integral parts of an organization is its human resources. What if an organization invests largely in technology and operations but fails to encourage employee development? Unfortunately, this has been the situation in many unsuccessful companies. The best organizational performance requires leadership training as part of employee training and development. Let your employees grow and you will notice substantial organizational growth. HR management experts believe that providing growth opportunities for employees plays a vital part in organizational growth strategies.


Human Resources management ultimately targets the overall development of the organization. So, HR managers also become developmental managers. They play a key role in employee training and development which aligns with organizational growth strategies. Creating new managers and leaders through leadership training is a pivotal strategy for organizational growth. Organizational development software is popular now and serves a bigger purpose of tracking and managing overall organizational growth. Thus, both employee development and organizational development are established terms in the business management domain. But don’t get fooled by the synonymity of its processes! Organizational and employee development are separated by a thin line. One cannot be confused by these terms if one understands their impacts and significance. In simple words, employee development is just a subset of organizational development. Wondering how to facilitate employee and organizational development in your business? Read on to comprehend the correlation and distinction between the two ideologies.


  • Employee Development

If you are a manager/leader, it is necessary for you to follow a structured approach to enhance the productivity of your subordinates. A significant part of the training and development programs for employees is to drive their leadership skills. Experts believe that leadership training begins with the simplest moments. Employees need to be motivated to exhibit their managerial abilities even in the smallest of tasks. It’s not always about displaying authority. It’s mainly about influencing through one’s leadership activity in a team setup. So, the organization must prioritize funding for employee training and development to increase their motivation. Higher the motivation, the better the engagement! Thus, employees engage better in their tasks leading to improved productivity. Productivity is the key to an employee’s lateral as well as vertical growth. But productivity requires consistency which can only be achieved by periodic tracking of skill development. Eventually, the benefits of higher productivity aid not only the employees but also the organization. So, looking at employee development from an organizational outlook, it does have a substantial impact. The traditional HR management processes were focused on hiring and termination. But, with rising competition in this technologically-driven world, employee development is also a mandatory practice. This not only promotes business growth but also mitigates potential risks.

  • Organizational Development

Organizational development involves more strategic approaches to bring about more positive changes in the organization. It is a specialized segment of HR operations and has more data-driven processes to assess and facilitate development. If you are a part of the senior management or executive team, you are highly responsible for creating long-term organizational growth strategies that consistently focus on improving the company’s performance and profitability. Problem-solving, risk mitigation, predictive analysis, and developmental research are the key areas of organizational development. With the massive burgeoning of technologies, organizational development software is becoming an integral part of every business operation. But what are the areas of prospective development in an organization? Experts imply that employees, processes, operations, and management are the segments that need immense focus for overall organizational development. So, apart from HR management, organizational development requires the proficiency of the executive team to plan and strategize growth. One can certainly say that employee training and development also impact organizational growth as they are the foundation of an organization. Hence, let us understand how employee and organizational development are related despite the slight difference between them.

  • The Correlation

Employees are the fundamental attributes of an organization that decide its performance outcomes. So, when talking about organizational development we must also consider employee development apart from process improvement and change management. Today’s workers are tomorrow’s leaders! Cultivating excellent leadership skills among employees increases their sense of responsibility towards the organization. So, leadership training is one of the most effective organizational growth strategies. Both employee and organizational development can be possible by only one major factor – Education! While employee development is possible through upskilling, organizational development requires proficiency in organizational development software. After all, development can be measured only through continuous assessment. The slight difference is, employee upskilling gives a wide range of options to the learners, whereas organization development requires adherence to certain protocols and strategies. Either way, employee development contributes majorly towards business growth. So, top-tier organizations sustain their success and growth through strategically devised employee training and development programs. Innovations and structural changes can be effortlessly incorporated through skillful employees. So, investment in employee development caters to organizational development too.


To have a resilient and beneficial organizational development program, the leadership team must focus not only on solutions but also risks. Investment of time and money in training and development programs for employees is an organizational concern. The learning period is a challenge for both employees and the organization in terms of productivity outcomes. It is a major challenge to manage these risks while also sticking to the development plan. To overcome these challenges, the organization has to dedicate a specialized executive team. Building more leaders can ultimately be beneficial! So, a solid and long-term strategy must be developed that doesn’t impact the performance. Also, regular performance evaluations for organizations and employees using crucial metrics must be executed. Consider these assessment results seriously and act upon remedial measures immediately.
Leaders! Never compromise organizational culture, values, and goals! Focus on maximizing the abilities of your valuable human resources! Embrace innovations and constructive changes! Achieve organizational growth with well-grounded strategies!

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