Organizational transformation, qualitative and fundamental changes in an organization, occurs as a result of an organization's adaptive mechanisms being overwhelmed by internally or externally induced contingencies. Current approaches to change derived from equilibrium models are not adequate to describe the transformation phenomena. An emerging paradigm, dissipative structure, provides an alternative perspective on transformation by proposing that non-equilibrium conditions provide the opportunity for a new organizational order, resulting in an increased ability to manage complexity. Conditions, processes, and functioning of organizations from this perspective are discussed.
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