Difference Between Organisational Development And Organisatioanl Transformation

2325 Words Aug 30th, 2001 10 Pages
INTRODUCTION Organisations today recognise the need for change. The "new economy"� of the twenty-first century requires organisations to adapt to changing markets, innovate new products or services, expand customer bases, trade or deliver goods and services in new ways like e-commerce, manage rapid growth or decline or become global in their outlook. The purpose of organisational change is to improve organisational efficiency, effectiveness and productivity. To draw on the metaphor of an organisation as a living organism, an organisation has to change in order to survive; not changing could mean death.

Two main forms of change that this essay will look at are: Organisational Development (OD) and Organisational Transformation (OT). This
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More current practices of OD emphasize the role of the practitioner as a facilitator.

ORGANIZATIONAL TRANSFORMATION What is Transformational change? OT is a process that radically alters the organizations strategic direction, including fundamental changes in structures, processes and behaviors. It is the second generation OD.

Organizational Transformation aims to create a new vision and to develop capacity for continuous self-diagnosis and change. It promotes paradigmatic change and helps the organisation better fit or create desirable future environments.

For organisational transformation to operate change is required in strategy and structure. Tushman and O'Reilly state, (1996, p11) "long-term success is marked by increasing alignment among strategy, structure, people and culture."� Successful organizations are those that gain fit among their strategies, structures and skills with the environment.

Tushman and O'Reilly (1996) state that older, larger, successful organizations develop what they call "structural inertia"� and "cultural inertia"�. Structural inertia is resistance to change, which has roots in the organization's structures, systems, procedures and processes that are tied to organizational size, complexity and interdependency. Cultural inertia is more pervasive than structural inertia. It comes from age and success. As an organisation becomes older the lessons from success of the past becomes embedded in the shared