A unified open systems model for explaining organisational change - Information Systems Foundations: Constructing and Criticising - page 138

that occurs in 'transformational' or 'reorientation' phases. Consequently, we incorporate
the theory of dissipative structure into the model.
Homeostasis, adaptation, and transformation
The degree of systemic change depends on the magnitude of environmental contingencies
or external fluctuations although we have also argued that internal fluctuations play a
vital role in inducing change in complex systems. Based on the argument made previously
in the open systems and dissipative structure model, the organisation as a complex system
can neither always maintain itself in a steady state (or homeostasis) nor keep on trans-
forming without reference to the magnitude of fluctuations or disturbances that impinge
upon it (see Tushman and Romaneli, 1985 for more details).
It is much more difficult for major transformational change to occur, or be implemented,
because it typically involves a profound reformulation of the organisation's mission,
structure and management, and fundamental changes in the basic social, political, and
cultural aspects of the organisation (Levy, 1986; Levy and Merry, 1986). Hence, the
concept of transformation covers both operational processes and psychological dimensions
of the organisations. According to the theory of dissipative structure, transformational
change requires energy (both human and non-human) to push the organisation across
the instability threshold by means of necessary fluctuations, from within and without,
to inflict a morphological change. In contrast, the concept of adaptation deals only with
the modification of the system's structure or structural properties in such a way that
the functional properties of the system are left largely or entirely unaltered when facing
environmental disturbances (Van Gigch, 1978). Therefore, organisations as systems can
only maintain their steady state or remain in a homeostatic equilibrium.
Adaptability is related to organisational structure in that it is about bringing the organ-
isation into harmony with the changing environment, and the adaptive function works
in two directions. First, it modifies internal structures to correspond with external
changes, and second, it attempts to control the environment (Van Gigch, 1991). Moreover,
the concept of adaptation is not limited to structural change but also relates to other
factors as well (e.g. procedures and technology).
Figure 11.7. Punctuated equilibrium model showing adaptive (convergence)
phase A and transformational (reorientation) phase B.