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Organisational Transformation: |
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Organizations today
are faced increasingly with fierce competition, demanding customers, economic pressures, and financial crises. To be effective, they must reduce costs, improve product and service quality, and respond quickly to new opportunities
in the marketplace. This management accounting guideline addresses the topic of transforming an enterprise in practical terms, describing common practices, comparing structural options, and identifying relevant issues in planning,
implementing, and measuring the success of organizational transformation. The transformation involves complex and simultaneous interactions. In his process, a variety of possible forms can emerge. Each of these forms is a possible
alternative future of the system-which may range from complete destruction and annihilation of the system to a complete transformation to a higher level of complexity. Definition Organisational Transformation
is a term referring collectively to such activities as reengineering, redesigning and redefining business systems. The dominant enabling technology in transforming organization is information and technology. As
business model change rapidly in the financial environment and mergers and acquisition change the face of the organization. So, organization continually need to Three Types of Transformation Phases of Transformation
Phase-1: It begins with the automation of existing activities to reduce cost and raise capacities and expands to encompass a broader range of applications to optimize operations. Phase-2: It focuses on adding features, functions, value-added processes and new service to the core business. Phase 3: It may become principal vehicles for growth; the existing business can be redefined. Transformation Strategies There are various strategies to transform organization. It may be followed: In short, the basic thrust behind OD is that the world is rapidly changing and that our organizations must follow suit. Greiner identified what he considered to be the seven most commonly used approaches to change. a) The Decree Approach Conclusion LASTLY... the managerial wisdom System transformations (and not Entropy) are likely to occur more when there is a: * normative support to experimenting Reference |
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Source: E-mail March 16, 2006 |
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