This document discusses modeling organizational change using a punctuated equilibrium approach. It presents two possible modeling approaches: 1) a composite model approach that uses traditional open systems models to model convergence and dissipative structures theory to model reorientation, and 2) using self-organization theory to explain both convergence and reorientation phases. The goal is to develop a dynamic model that can represent and replicate the different phases of change over time to provide greater insights into organizational evolution. Future work involves using system dynamics modeling at a macro level.

1. A Dynamic Approach for
Modeling Organizational Change
and Evolution
A comparative view based upon a
use of a composite-model
approach and a single theory
By
Doy Sundarasaradula and Helen Hasan
School of Economics and Information Systems, Faculty of Commerce,
University of Wollongong, Australia

2. Presentation Outline
• Problems with traditional organizational
change model
• The Theory of Punctuated Equilibrium
• Modeling punctuated equilibrium
phenomenon in organizations
• Possible approaches in modeling
punctuated equilibrium
• Conclusion and future work

3. Problems with Traditional
Organizational Change Model
• Limitations of the traditional change model
– Traditional open systems model, homeostasis and
negative feedback (fixed structure assumed)
– Law of Requisite Variety (control theory)
– Limitations of existing organizational theory and
model in explaining change (e.g. Structural
Contingency Theory)
• Traditional change model: A reflection
– Limitation of self-regulation and adaptation (change in
parameters)
– Limitation in explaining change in organizational
configurations

4. The Theory of Punctuated
Equilibrium
• Discontinuous in fossils’ patterns - the
origin of the theory
• The nature of change in complex systems
– Convergence (gradual/ incremental)
– Reorientation (discontinuous / episodic
change)

5. Characteristics of a Convergence
• Changes are gradual and incremental.
• Spans over a lengthy period
• Rely on adaptation as a means of
maintaining homeostasis or dynamic
equilibrium
• Deep or fundamental structure is
maintained.
• The relationships between each systemic
variable are linear.

6. Characteristics of a Reorientation
• Changes are discontinuous and episodic.
• Changes are instantaneous.
• Changes result in new organizational
forms or archetypes.
• Changes are based on non-equilibrium
condition and fluctuation (self-
organization).
• Nonlinear relationships are prevailing in
the change process.

7. Modeling Punctuated Equilibrium
Phenomenon in Organization
• The nature and characteristics of
organizations from a system perspective
– Complexity
– Dynamism
• Three types of model and organizational
modeling
– Static
– Comparative static
– Dynamic

8. Modeling Punctuated Equilibrium
Phenomenon in Organization
• Model specification:
– Can represent and replicate both phases of
change in terms of system’s behavior (i.e.
change in behavior over time)
– Is a dynamic model (i.e. computational/
numerical model in which “time” is an explicit
variable)
– Can demonstrate the effect of change in the
systemic variables and parameters on the
system’s behavior

9. Time
Environmental
Contingencies
dt
β1
β2
Convergence 1
Convergence 2
Reorientation

10. Possible Approaches in Modeling
Punctuated Equilibrium
• A composite-model approach
• The use of the theory of self-organization
(self-organizing systems model)

11. A Composite-model Approach
Phases of change
Theoretical foundation for
modeling
Convergence
•Traditional open systems model
•Homeostasis
•Self-regulating system
Reorientation Dissipative structure

12. The Use of The Theory of Self-
organization
Phases of change
Explanation provided by the theory
of self-organization
Convergence
Fluctuations are dampened and absorbed
by the system.
Reorientation
•Fluctuations are amplified by the system.
•The system is destabilized.
•The system is self-organized and
transformed.

13. Conclusion and Future Work
• Greater insights into the evolutionary and
revolutionary changes in formal
organizations can be achieved through
the adoption of modeling process.
• System dynamics modeling technique is
currently used for modeling punctuated
equilibrium phenomena at macroscopic
level.