ORGANISATIONAL TRANSFORMATION

INTRODUCTION

Organizations today are faced increasingly with
fierce competition, demanding customers,
economic pressures, and financial crises.


To be effective, they must reduce costs, improve
product and service quality, and respond quickly to
new opportunities in the marketplace.
The transformation involves complex and
simultaneous interactions.

In this process, a variety of possible forms can
emerge.

Each of these forms is a possible alternative future
of the system-which may range from complete
destruction of the system to a complete
transformation to a higher level of complexity.
DEFINATION
Drastic and abrupt change to total structures,
managerial processes and corporate cultures.
- McLagan,2002 and Leifer,1989.

A change can be called as transformational, only when
majority of individuals in the organization change
their behavior.
-Blumenthal and Haspeslagh, 1994.
MEANING

Organizational Transformation (OT) is a term
referring collectively to such activities as
reengineering, redesigning and redefining business
systems.


The dominant enabling technology in transforming
organization is information and technology.
EMERGENCE OF OT
Transformational change (TC) is also known as Second
order or Gamma type of change.

The term OT was first noted by James Adams
transforming work.(1984)


1980s environmental conditions were changing
constantly need for large scale TC within
organizations lead to new organization theory and
practices.

According to Nadler and Tushman, (1989)
Transitions OD and

According to Nadler and Michael, (1989) Frame
bending OT.

Principles of effective frame bending
- Initiating Change first phase
- Content of Change & Leading Change second
phase
- Achieving Change third phase
-Levy and Merry, 1986.

Goodsteine and Bruke, 1991
Fine Tuning OD and
Fundamental large scale change OT
in an organizations strategy and culture.

Others Barczac, Smith and Wilemon, 1987 and
Bechard and Pritchard have differentiated
ORGANIZATIONAL TRANSFORMATION from
INCREMANTAL CHANGE.
TRIGGERS OF TRANSFORMATIONAL CHANGE
Transformational Change When it has a strong
trigger Either experiences or anticipates threat to
the existing organization.
Following are the triggers of TC :
1. Shift in industry, Product life cycle and Inside organization.
2. Revolutionary and complete change.
3. Demand for paradigm shift in organization.
4. Motivation by top management and line management.
5. Constant learning and change.
ANALYTICAL TOOLS AND TECHNIQUES
Environmental Analysis Techniques.
- SWOT
- ETOP(environmental threat and opportunity profile)
Industrial Analysis Technique.
-Michael Porter
Porters 5 Force Model and Competition Analysis
Threats of Entry
Powerful Suppliers
Powerful Buyers
Substitute products
Competition among rivals
Example:
Martin Johnson is deciding whether to switch career and become a farmer he's
always loved the countryside, and wants to switch to a career where he's his own
boss. He creates the following Five Forces Analysis as he thinks the situation
through:
- Financial Analysis
- Key Factor Rating
- Functional Area Profile and Resource
Development Matrix
- SAP Strategic Advantage Profile
HR INTERVENTIONS
Managing Diversity and Inclusion

LARGE GROUP INTERVENTIONS
Appreciative Inquiry
World Caf

COACHING INTERVENTIONS
Transaction Coaching for Leaders
Coaching in Crisis

FUTURE TRENDS FOR
ORGANISATIONAL TRANSFORMATION
De-routinisation
- Swarming
- Spontaneity
- Pattern Sensitivity