Organisational Change

3.10 PERFORMANCE-DRIVEN ORGANISATIONAL CHANGE

Organisational change is driven by organisational performance. The different effects of high and low organisational performance can be distinguished with low performance causing organisational adaptation and high performance leading to organisational growth. Thus, there are basically two aspects of organisational change.

1. Organisational adaptation
2. Organisational growth

Organisational adaptation occurs whenever an organisation alters some attribute of itself to bring about a better fit with its situation to improve organisational performance. For example, organisational adaptation occurs when a diversified firm with a functional structure that is inappropriate adopts instead a divisional structure ...