How can organization’s performance be improved through OD (Organisation Development)? When can you say that an organization needs to be developed?

Agree with answer given by mr. Krupa K Atluri 

1.Performance improvement is measuring the output of a particular business process or procedure, then modifying the process or procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. Performance improvement can be applied to either individual performance such as an athlete or organizational performance such as a racing team or a commercial business.

In organizational development, performance improvement is organizational change in which the managers and governing body of an organization put into place and manage a program which measures the current level of performance of the organization and then generates ideas for modifying organizational behavior and infrastructure which are put into place to achieve higher output. The primary goals of organizational improvement are to increase organizational effectiveness and efficiency to improve the ability of the organization to deliver goods and or services. A third area sometimes targeted for improvement is organizational efficacy, which involves the process of setting organizational goals and objectives.

Performance improvement at the operational or individual employee level usually involves processes such as statistical quality control. At the organizational level, performance improvement usually involves softer forms of measurement such as customer satisfaction surveys which are used to obtain qualitative information about performance from the viewpoint of customers.

2. The concept of Organization development enables the organization to achieve the targets and meet the objectives at a much faster rate. Management can handle the employees in a better way as a result of organization development. The Organization is ready for development when the employees are not happy with the current scenario and feel the need for a change in the processes of the organization. Employees also help the organization do better in the upcoming future by giving certain ideas & suggestions. The management implements various policies and procedures to help the organization respond to external as well as internal changes more effectively.

Simply:

Organizational development depends on performance. Therefore, we should consider performance measurement as a cyclic process. So, business processes have to be measured at certain level, time frame and technology enhancements.