Employee Development and Organizational Performance: The Role of Strategic Organization Development Interventions

Abstract

Employee development (ED) and organizational performance (OP) have been significant business challenges. Strategic and long-term employees’ development and performance strategies are of interest to corporate leaders. This research study aims to explore and investigate how strategic organisations development (OD) interventions affect and modify the "total system" for strategic benefits, as well as how they contribute to performance improvement. We tested a mediated model using a quantitative research study, and we also looked into how strategic OD interventions (acquisition, merger, partnership, and joint venture (JV) affected OP (financial performance growth) (FP (G)) and ED. The data is gathered using a sample of 800 security and exchange commission of Pakistan (SECP)-registered firms. Results show that merger positively and significantly effects ED and FP (G). ED partially mediates between merger and FP (G). The effect of acquisition on ED and FP (G) is significant and positive. ED fully mediates the effects of acquisition on FP (G). Partnership positively and significantly effects ED and FP (G). Mediation analysis shows that ED fully mediates the effect of partnership on FP (G). The relationship of JV with ED and FP (G) is insignificant. The results also showed that organisations respond to changes in their internal and external environments. The process of corporate transformation is ongoing. The study adds a strong theoretical framework to the body of knowledge on OD interventions and performance in Pakistani business organisations.