Understanding Transactional vs. Transformational Change in Organizational Development: Can You Help?

Hello,

I am seeking information on 1st order change (Transactional Change) and 2nd Order change (Transformational Change) in Organizational Development.

"URGENT": Please help.

Thank you.

Regards,
Nirav

Hi,

Please look into the Burke-Litwin model.

1. Transactional change is known as 1st order change, which has elements like:
- Structure
- Systems (policies & procedures)
- Individual needs & values
- Task requirements, skills, abilities
It involves processes such as:
- Management practices
- Work unit climate
- Motivation
- Individual & organizational performance

2. Transformational change is 2nd order change, with elements including:
- Mission & strategy
- Organizational culture
Processes like:
- External environment
- Leadership
- Individual & organizational performance

You can also refer to the book on OD by French, Bell & Vohra. Hope this is helpful.

Rashi

Hi!

Even I was about to suggest exactly what our friend above has suggested. Truly apt suggestion. This model also very clearly and technically explains these concepts. OD books will also contain a few more models on these topics. Both types of leadership are needed, but the emphasis on transformational leadership (change orientation due to the ever dynamic external environment) is very important and imperative.

M.A. Ganju