Understanding of Business Strategy Within The Organization: An Organizational Development Perspective in South Africa

Organizational Development (OD) is the strategic and systematic approach to enhancing an organization’s effectiveness and viability. OD is about cultivating a culture of continuous improvement and innovation, ensuring the organization remains resilient and responsive in an ever-evolving landscape. This is especially critical in the fast-moving consumer goods (FMCG) industry where competitive advantage can swiftly be disrupted by competition; therefore, successful OD initiatives must take a holistic view in addressing structural or procedural issues—plus the human aspects of organizations. In the current fast-paced and uncertain business environment, organizations must be agile and adaptable to thrive. Furthermore, OD emphasizes the importance of employee development and engagement because people are the lifeblood of any organization, and their skills, motivation, and commitment are critical for success. Through initiatives such as training and development programs, performance management systems, and employee well-being initiatives, OD fosters a supportive and inclusive work environment where individuals can thrive and contribute their best. Therefore, OD lays the foundation for collaboration, innovation, and high performance. In this study, OD includes employee education and experience as well as organizational structure, hence, the purpose of this study was to investigate the impact of OD on the understanding of business strategy within the organization. An empirical study conducted in the FMCG industry produced a sample size of 131 respondents. The main findings and recommendations to management, as presented in the study, suggest that OD has an impact on the understanding of business strategy within the organization.