• Summary
  • Contents
  • Subject index

In this book, Lex Donaldson, one of the leading scholars in the field of organization theory, introduces a compelling theory of performance-driven organizational change, Organizational Portfolio Theory. In explaining why organizations change and also why they fail to change, the theory reconceptualizes the organization as a portfolio with a number of different causes of organizational performance varying over time. The author argues that without a performance crisis there is a good chance that necessary organizational changes will not be forthcoming, and that moreover, the adaptive change induced by the crisis creates the capacity for fresh organizational growth.

Performance-Driven Organizational Change
Performance-driven organizational change

Organizational change is driven by organizational performance. The different effects of high and low organizational performance can be distinguished, with low performance causing organizational adaptation and high performance fostering organizational growth. Fluctuations in organizational performance are shown to be affected by the portfolio properties of the organization. This chapter lays down the framework that is used in the rest of the book.

Throughout this book, we analyze two aspects of organizational change: organizational adaptation and organizational growth. Organizational adaptation occurs whenever an organization alters some attribute of itself to bring it into a better fit with its situation, so improving organizational performance. The situation may be thought of as consisting of characteristics of the external environment and also of intraorganizational or ...

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