What is the difference between organizational development and organizational effectiveness?

Organisation Development and Organizational Effectiveness are two sides of the same coin. Organizational Development is a field of knowledge that concentrates on the development of organisation effectiveness, especially during change. It uses group and human dynamic processes from applied behavioural science methods, research and theories to facilitate movement of groups and organisations.  This includes drawing from Organizational Psychology.

Organisation Development is based on research, including that from the field of organizational psychology, which demonstrates that every part of an organisation is integral to a system that relies on and impacts other elements of the internal and external environment in which the organisation operates.  Key areas of research include (although this is not an exhaustive list);

• Human Characteristics and differences and their impact of individual/team/organizational functioning
• Assessment, tests and technology used in people activities; including employee performance assessment, job design, training, selection etc.
• Assessment of individual differences in abilities
• Organizational systems theory, Organizational Behaviour and change and effectiveness
• Leadership and Motivation
• Leveraging synergies across the micro and macro divide e.g. understanding how Organizational strategy shapes the needs of employees
• Human capital and its impact on strategy, capability and effectiveness
• Application of psychological principles on well-being e.g. impact of organizational restructuring and business reengineering, including stress and survival anxiety of employees
• Cognitive neuroscience and brain function – impact on decision making, mood and disorders
• Personality, attitudes, values and interpersonal interactions
• Motivation from achievement, power and renumeration
• Influences on leadership and group processes
• Behaviour outcomes on job performance, attitudes and other reactions
• Principles for understanding important classes of work bheaviour
• Tools to influence, shape and enhance human performance

I agree with your answer Mr. Ali