1. Organization Development and Change
Chapter Twenty:
Transformational Change
Thomas G. Cummings
Christopher G. Worley

2. 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.
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

3. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

4. Integrated Strategic Change (ISC)
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.
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

5. Integrated Strategic Change (ISC) ~ Key Features
Strategic Orientation
Creating the Strategic Plan
Integrating Individuals and Groups into the Process
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

6. The Integrated Strategic Change Process
Strategy S1
Strategy S2
Strategic
Change
Plan
Organization O1
Organization O2
Implementation
Strategic Analysis
Strategic Choice
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

7. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

8. Organizational Design
Conceptual Framework
Strategy
Structure
Work Design
Human Resources Practices
Management and Information Systems
Key Point
Fit, Congruence, Alignment among Organizational Elements
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

9. Organization Design Model
Organization Strategy
Strategic Fit
Organization Design
Structure
Management and Information Systems
Design Fit
Work
Design
Human Resource
Practices
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

10. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
Organization Designs
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

11. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

12. The Concept of Organization Culture
Artifacts
Norms
Values
Basic
Assumptions
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

13. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

14. Competing Values Approach
Flexibility & Discretion
Clan
Adhocracy
External Focus & Differentiation
Internal Focus & Integration
Hierarchy
Market
Stability & Control
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

15. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning