Organization Development and Change
Chapter Twenty :
Transformational Change
Thomas G. Cummings
Christopher G. Worley
Learning Objectives
for 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.
20-2
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
20-3
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 firm’s strategic orientation resulting
in improvement in performance and
effectiveness.
20-4
Integrated Strategic Change
(ISC) ~ Key Features
Strategic Orientation
Creating the Strategic Plan
Integrating Individuals and
Groups into the Process
HS 21-5
The Integrated Strategic Change Process
Strategy
S1
Strategic
Change
Plan
Organization
O1
Strategic Analysis
Strategy
S2
Organization
Implementation
O2
Strategic Choice
20-6
ISC Application Stages

Strategic Analysis
 Assess the readiness for change and top management’s
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
20-7
Organizational Design
Conceptual Framework





Strategy
Structure
Work Design
Human Resources Practices
Management and Information Systems
Key Point

Fit, Congruence, Alignment among Organizational
Elements
20-8
Organization Design Model
Organization Strategy
Strategic Fit
Organization Design
Management
and Information
Systems
Structure
Design Fit
Human Resource
Practices
Work
Design
20-9
Organization Designs
20-10
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

20-11
The Concept of Organization Culture
Artifacts
Norms
Values
Basic
Assumptions
20-12
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
20-13
Competing Values Approach
Internal Focus & Integration
Flexibility & Discretion
Clan
Adhocracy
Hierarchy
Market
Stability & Control
20-14
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

20-15
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