Organizational Effectiveness and Development (OED)
5 minutes
5 Questions
In the context of the SHRM Senior Certified Professional (SHRM-SCP) certification, Organizational Effectiveness and Development (OED) is a critical functional area located within the 'Organization' domain. It is defined as the use of behavioral science and data-driven strategies to manage systemic …In the context of the SHRM Senior Certified Professional (SHRM-SCP) certification, Organizational Effectiveness and Development (OED) is a critical functional area located within the 'Organization' domain. It is defined as the use of behavioral science and data-driven strategies to manage systemic change, align organizational structure with strategy, and improve overall performance. While administrative HR focuses on daily operations, OED is transformational, treating the organization as a complex system of interconnected parts.
For an SHRM-SCP, OED requires acting as an internal consultant. The process follows a specific lifecycle: creating a diagnostic framework to identify root causes of inefficiencies (not just symptoms), designing interventions, implementing solutions, and evaluating results. This often involves conducting gap analyses to determine the difference between the current state and the desired future state.
Key components of OED include 'Organizational Design'—determining the best structural hierarchy (functional, matrix, or divisional) to facilitate decision-making—and 'Change Management,' which involves guiding stakeholders through transitions such as mergers or technological shifts. Interventions generally fall into three categories: strategic (aligning mission and structure), techno-structural (improving work processes), or human process (enhancing communication and culture).
Ultimately, OED aims to increase organizational health and adaptability. By ensuring that people, processes, and structures work in harmony, senior HR professionals can improve productivity, foster innovation, and demonstrate a measurable return on investment (ROI) that supports the organization's long-term strategic objectives.
Organizational Effectiveness and Development (OED) Guide for SHRM-SCP
What is Organizational Effectiveness and Development (OED)? Organizational Effectiveness and Development (OED) focuses on how an organization functions as a system. It involves assessing the organization's capabilities and implementing strategies to align the workforce, structure, and processes with the organization's strategic goals. Unlike standard HR tasks that may focus on individuals (like recruitment or benefits), OED looks at the holistic performance of the company, teams, and departments. It is the practice of planned, systemic change to improve effectiveness and organizational health.
Why is it Important? For an HR professional, OED is vital because it proves the strategic value of HR. It ensures that the organization is not just 'doing things right' (efficiency) but 'doing the right things' (effectiveness). Properly executed OED initiatives lead to increased productivity, better adaptability to market changes, higher employee engagement, and a sustainable competitive advantage.
How it Works: The OED Process Model OED initiatives typically follow a structured problem-solving approach, often referred to as the consulting model:
1. Entry and Contracting: Identifying the problem and establishing a relationship with stakeholders. Defining the scope of the project. 2. Data Collection and Diagnosis: Gathering qualitative and quantitative data to identify the root cause of a problem, rather than just treating symptoms. Methods include SWOT analysis, PESTLE analysis, and employee surveys. 3. Feedback and Feedback Meetings: Presenting findings to stakeholders to validate data and gain buy-in for the proposed solution. 4. Intervention Planning and Action: Designing and implementing the solution. Interventions fall into categories such as Strategic (mergers, culture change), Techno-structural (work design, restructuring), Human Process (conflict resolution, team building), or HR Management (performance management systems). 5. Evaluation: Measuring the success of the intervention against pre-set metrics.
Exam Tips: Answering Questions on Organizational Effectiveness and Development (OED) SHRM-SCP questions regarding OED are often scenario-based situational judgment items. Here is how to approach them:
1. Diagnosis Before Action: A common trap is choosing an answer that immediately implements a solution (e.g., 'Start a training program'). In OED, the correct answer is almost always to assess or analyze the situation first. Look for answers that involve reviewing data, conducting a gap analysis, or gathering feedback to find the root cause.
2. Focus on Alignment: Always select the option that aligns the HR intervention with the broader organizational strategy. If a solution fixes a local problem but creates misalignment with the corporate vision, it is incorrect.
3. Differentiate Between Interventions: Understand the difference between a Structural intervention (changing reporting lines or hierarchy) and an Interpersonal intervention (coaching or team building). If the scenario describes a workflow bottleneck, look for structural answers. If it describes low trust, look for human process answers.
4. Measure Results: SHRM emphasizes evidence-based management. The best answers often include a component of evaluation. How will you know the OED initiative worked? Look for references to ROI, KPIs, or follow-up surveys.