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Transactional change is characterized as focused on management practices and systems because it involves making adjustments to existing processes or structures without fundamentally altering the underlying framework. This type of change typically seeks to improve efficiency, effectiveness, or productivity within established systems and practices. It often requires managers to implement changes that are more about optimizing current operations rather than redefining the organizational culture or vision.

In contrast, transformational change implies a more profound and fundamental shift in the organization’s operations, culture, or strategic direction. First-order change refers to incremental changes that maintain the status quo, and second-order change involves significant shifts that challenge and change the existing norms and values within an organization. Therefore, transactional change helps ensure that management practices and their corresponding systems remain relevant and effective while striving for operational excellence.