Page 48 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Unit 3: Models of Change

In second-order change, the nature of the organization is fundamentally and substantially altered Notes
± the organization is transformed. Second-order change goes by many different labels:
transformational, revolutionary, radical, or discontinuous change. OD programs are directed
toward both first and second-order change, with an increasing emphasis on second-
order transformational change. The model distinguishes between organizational climate and
organizational culture.
Organizational climate is defined as peoples perceptions and attitudes about the organization-
whether it is a good or bad place to work, friendly or unfriendly, hard-working or easygoing,
and so forth. These perceptions are relatively easy to change because they are built on employees
reactions to current managerial and organization practices. On the other hand, organizational
culture is defined as deep-seated assumptions, values, and beliefs that are enduring, often
unconscious, and difficult to change.

Figure 3.10: The Transformational Factors Involved in Second-order Change

Changing culture is much more difficult than changing climate.
The premise of the Burke-Litwin model is this: OD interventions directed toward structure,
management practices, and systems (policies and procedures) result in first-order change;
interventions directed toward mission and strategy, leadership, and organization culture result
in second-order change. The model also makes a distinction between transactional and
transformational leadership styles. These two concepts come from leadership research which
found that some leaders are capable of obtaining extraordinary performance from followers
while other leaders are not. Transformational leaders are “leaders who inspire followers to
transcend their own self-interest for the good of the organization and who are capable of having
a profound and extraordinary effect on their followers.” Transformational leadership embodies
inspiration which leads to new heights of performance. Transactional leaders are “leaders who
guide or motivate their followers in the direction of established goals by clarifying role and
task requirements.” Transactional leadership embodies a fair exchange between leader and
follower that leads to “normal” performance. Transactional leadership is sufficient for causing
first-order change. Transformational leadership is required for causing second-order change.
Now let us look at the Burke-Litwin model. We will do so in several steps. Following figure
shows the factors involved in first-order (transactional) change. Changing structure, management
practices, and systems cause changes in work unit climate, which change motivation and, in
turn, individual and organizational performance. Transactional leadership is required to make
this change in organizational climate.

On the other hand, if we want to cause second-order (transformational) change, we must change
mission and strategy, leadership styles, and organization culture, as shown in the above figure.

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