Thomas G. Cummings

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Organization Development and Change
Chapter Twenty Transformational Change

• Thomas G. Cummings
• Christopher G. Worley

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Learning Objectivesfor Chapter Twenty

• To explore a framework that categorizes different
  types of organizational change efforts with
  emphasis on the features of transformational
  change
• To understand three kinds of interventions
  against the background of transformational
  change, integrated strategic change, organization
  design, and culture change.

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Characteristics of Transformational Change

• Triggered by Environmental and Internal
  Disruptions
• Aimed at Competitive Advantage
• Systemic and Revolutionary Change
• Demands a New Organizing Paradigm
• Driven by Senior Executives and Line Management
• Involves Significant Learning

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Integrated Strategic Change(ISC)

• Integrated Strategic Change
• is a deliberate coordinated process that
• leads to gradually or radically systemic
• realignments between the environment
• and a firms strategic orientation resulting
• in improvement in performance and
• effectiveness.

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Integrated Strategic Change(ISC) Key Features

• Strategic Orientation

Creating the Strategic Plan
Integrating Individuals and Groups into the
Process
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The Integrated Strategic Change Process
Strategy S1
Strategy S2
Strategic Change Plan
Organization O1
Organization O2
Implementation
Strategic Analysis
Strategic Choice
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ISC Application Stages

• Strategic Analysis
• Assess the readiness for change and top
  managements ability to carry out change
• Diagnose the Current Strategic Orientation
• Strategic Choice
• Top management determines the content of the
  strategic change
• Designing the Strategic Change Plan
• Development of a comprehensive agenda to achieve
  the change
• Implementing the Strategic Change Plan

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Organizational Design

• Conceptual Framework
• Strategy
• Structure
• Work Design
• Human Resources Practices
• Management and Information Systems
• Key Point
• Fit, Congruence, Alignment among Organizational
  Elements

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Organization Design Model
Organization Strategy
Strategic Fit
Organization Design
Structure
Management and Information Systems
Design Fit
Work Design
Human Resource Practices
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Organization Designs
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Organization Design Application Stages

• Clarifying the Design Focus
• Create the overall framework, begins with
  examining strategy and objectives and determining
  organization capabilities needed
• Designing the Organization
• Results in an overall design for the
  organization, detailed designs for the
  components, and preliminary plans for how to
  implement
• Implementing the Design
• Puts the new structures, practices and
  systems into place, draws heavily leading and
  managing change methods

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The Concept of Organization Culture
Artifacts
Norms
Values
Basic Assumptions
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Diagnosing Organization Culture

• Behavioral Approach
• Pattern of behaviors (artifacts) most related to
  performance
• Competing Values Approach
• Pattern of values emphasis characterizing the
  organization
• Deep Assumptions Approach
• Pattern of unexamined assumptions that solve
  internal integration and external adaptation
  problems well enough to be taught to others

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Competing Values Approach
Flexibility Discretion
Clan
Adhocracy
External Focus Differentiation
Internal Focus Integration
Market
Hierarchy
Stability Control
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Culture Change Application Stages

• Establish a clear strategic vision
• Get top-management commitment
• Model culture change at the highest level
• Modify the organization to support change
• Select and socialize newcomers downsize deviants
• Develop ethical and legal sensitivity

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