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5Organization transformation and change

Question 1

Organizational transformation refers to complete and radical change in the manner in which members in an organization think, perceive and behave in the workplace. It is basically altering of the assumptions and mind sets about how the organization operates and how it interacts with its environments by changing corporate norms and values in the way the organization is structured and arranged in order to shape the behavior of its members. Whereas organizational transformational affects the qualitative nature of an organization, organizational development is mainly concerned with improving productivity of the organization by investing on employee satisfaction.

Question 2

Environmental and internal disruptions are changes that an organization may face in its operations and they threaten its existence in terms of what it is constituted of. Examples are industrial discontinuities for example changes in economic, political and legal conditions. Another example is product life cycle shift and lastly internal company dynamics such as turnover of company’s management.

Question 3

There are three key features of ISC. The first one is strategic orientation comprising of the organization and strategy design. The second key feature is strategic change capability which enables the organization to attain a competitive advantage. The third key feature is integration of individuals and groups into the planning, analysis and implementation processes.

Question 4

Organizational design is an intervention that configures the organizations work design, structure, human resource practices information systems and management with the aim of guiding the behaviour of employees in a given way. It is basically used whenever the organization has undergone a major change in its strategies which may require that new methods be adopted and members to behave in different way. The main problem that would be encountered in implementation of such a strategy would be the difficulty in changing of individual-based performance in the reward and information systems prevalent in most organizations to team-based performance structures.

Question 5

While mechanistic design emphasises on a strategy that minimizes costs such as found in McDonalds, organic design supports a strategy that is aimed at innovation like the one found at Intel. In the mechanistic design, formal or managerial hierarchies form the basis for coordination and control while the organic design has a flat, lean and flexible organizational structure. Mechanistic design emphasises on traditional jobs and work groups in the work flow design but in organic design work flow design involves enriched jobs and self-managed teams where employees are involved in decision making. In mechanistic design, human resource practices involve selection of employees with specific qualifications to fit specific jobs and periodic training whenever there is need to do so while in organic design, focus is on motivating, retaining and attracting talented employees.

Question 6

Organizational culture is the process of social learning and an outcome of choices that had been made earlier and the experience that has been acquired with the current strategies organization designs. It is the foundation in which the organization can use to foster change and can either hinder or facilitate organization transformation. The four major elements existing at different levels of awareness are artefacts, norms, values and basic assumptions.


Waddel, R., Cummings, D. and Worley, G.2011.Organisational Change, Development & Transformation.South Melbourne: Cengage Learning.