Difference between OD and HR

It is important to say that there is much debate and a number of alternative views relating to the differences between OD and HR and in many organisations, OD is combined with the HR function, with the Head of Department or Director having a dual role and title, as in “Head/ Director of OD and HR” (and vice versa) while in others, the HR department has a strategic role which implicitly but not explicitly includes OD.

Some believe that HR and OD are gradually merging, while others see them as necessarily distinct and different disciplines and believe that merging them is positively unhelpful and can lead to conflicts of interest.

For the purposes of this topic, I have attempted to provide a traditional explanation of difference, based on historic research and writing.

Human Resource Management
HR management (as opposed to development) is associated primarily with the more traditional personnel type functions, most of which tend to be characterised by specific and sometimes very detailed processes, legislation and regulation. Most of these processes were designed to ensure that things ran smoothly for the organisation, while at the same time ensuring that people got a fair deal, were adequately rewarded, had the opportunity for personal development, were happy and motivated at work and were well managed.

These processes include recruitment and selection, employment legislation, the development and management of the employment contract and associated legislative Acts, codes and regulations, pay strategies and mechanisms, appraisal, performance management (including capability and disciplinary processes), HR systems and databases, compensation and benefits, appraisal procedures, talent management and a whole array of other processes and functions.

As discussed above, modern, strategic HR has begun to address many of the issues with which OD was historically associated and uses as its starting point for the development of HR policy and strategy the strategic goals and plans of the organisation.

Arguably, though, the difference that still exists today is the basis of each individual discipline.

Organisation Development
Organisation Development, as seen from the previous history section and definitions, is, at its very core, rooted in behavioural science – psychology, sociology and anthropology – and is concerned with applying that knowledge to help organisations develop and improve.

There are few OD “processes” that are bound by legislation or set in stone, because the majority of the processes would be custom-designed to meet the aims of the OD strategy; and the starting point for development of an OD strategy would always be a system-wide diagnosis, including at least a review of the organisation’s mission or purpose, vision and values, to ensure that the direction of travel agreed following the diagnosis is aligned and consistent with the Purpose, Vision and Values.

CONCLUSION: It seems likely that the debate is set to ramble on for some considerable period of time and, as strategic HR progresses and HR is seen as more and more of a strategic and necessary function at Board level, the boundaries may very well continue to blur. What is critical, though, is that OD does not in the process lose some of its independence of thought and application of the knowledge of behavioural sciences, the understanding of which significantly benefit the organisation and the people within it.