This document discusses the challenges facing the owner of a 100 employee retail store located in a town where the major employer is relocating to Mexico. To ensure the continued operation of the business, the owner would need to apply Organization Development (OD) principles to increase the effectiveness of the organization and provide opportunities for employees to meet their potential, such as improving administrative efficiency and making the most of human resources.

1. You are the owner of a 100 employee retail dry goods store. You are located in a town where the
major employer is an automotive support industry who has just announced that they are
relocating their facility to Mexico. Analyze the challenges facing your company using OD
principle. How would you apply OD principles in order to ensure the continued operation of your
business?
Solution
Organization Development (OD) increases the use of human resources in order to improve
administrative efficiency. Its goals focus on making an organization more effective and to
provide individuals the best opportunity to meet or exceed their potential. Brown (2011,
p.4) states