According to Richard Beckhard, a transformation represents a vital organizational change. Transformation is characterized by certain features that clearly differentiate it from other types of change. First, according to Beckhard, it involves substantial and discontinuous change to the shape, structure, and nature of the organization, rather than incremental adjustments and fine-tuning of the current situation. One example of a discontinuous change would be when a firm changes from being production-driven to being customer-driven. Another would be a merger of two organizations. In both instances, the shape of the organization can be expected to change radically. An organization transforming from a production orientation to a customer orientation will need to drastically decentralize and delegate authority. In a merger, entirely new roles and working relationships will be created.
A second characteristic of transformation is that the need for change is caused by forces external to the organization rather than forces inside the organization. A typical example would be when an organization changes from a functional to a divisional structure in response to market forces or industry pressures in the form of competitor actions or regulatory changes. Currently, globalization is one of the most powerful external forces for organizational transformation. A third distinguishing feature of transformation is that the change is deep and pervasive, rather than shallow and contained. The change affects all parts of the organization and involves many levels. Decentralization, downsizing and the geographic relocation of functions and activities exemplify changes that transform structural relationships deeply and pervasively. Finally, transformation requires significantly different, and even entirely new, sets of actions by the members of the organization, rather than more or less of existing behavior patterns. Examples are changes to the norms and core values of an organization that are brought about through acquisition, deregulation, and privatization or through a drastic strategic repositioning such as shifting from a production-efficiency focus to a customer-service strategy.
According to Richard Beckhard, transformation is what kind of change in the organisational structure?
