Essay: Burke-litwin causal model of organizational performance
The Burke-litwin causal model showed in figure 1 points to causal linkages that determine the level of performance and affect the process of change. (John 2007) Burke and litwin’s model was first presented in the Journal of Management in 1992. This model build upon the 7 factors model and the positioning strategy was such that elements such as mission and strategy, leadership and organizational culture were located higher up in the model’s framework.
Burke and litwin’s model differentiated between transformational factors and transactional factors. The changes of external environment were as a result of the transformation in the transformational factors (yellow). Factors such as the mission, strategy, leadership and organizational culture were influenced firstly and then followed the change in transformational factors as a result of the transactional factors (green): structure, management practices, systems and work unit climate. Thus both transformational and transactional factors together affect the motivation levels which consequently affected the organizational performance.