Development trends in organizational and management structures
-
DOIhttp://dx.doi.org/10.21511/ppm.19(2).2021.39
-
Article InfoVolume 19 2021, Issue #2, pp. 495-506
- Cited by
- 1458 Views
-
660 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Development trends in management and organizational structures are considered one of the limitations of the ongoing transformation of the company architecture of enterprises in the Czech Republic. This study is based on the survey data of over 450 enterprises in different sizes and sector categories conducted in 2016–2019. Statistical dependence between the type of organizational structure and size of an enterprise is confirmed with a trend of transition to a department-based organizational structure at the expense of a division-based structure. A high degree of statistical dependence is found between the number of management levels and size of a company. However, a low level of statistical dependence is found between the number of management levels and the sector type. Dependence between management structure/size of an enterprise and its profitability is not confirmed. A critical strategic task for companies is acceleration of the transformation of the company architecture, including the organizational framework, and intensification of the innovation and digitalization based on a transfer of new knowledge into corporate practice. If enterprises accomplish this strategic task, they will generate higher value and they can be more profitable and sustainable. A transfer from classical management structures to departmental structures is demonstrated, which creates preconditions for transformation in process and project management. A new finding is an independent relationship between management structure/size of an enterprise and its profitability; and an opposite trend considering the number of management levels compared to the prediction, i.e., their decrease.
- Keywords
-
JEL Classification (Paper profile tab)М13, D23
-
References49
-
Tables5
-
Figures3
-
- Figure 1. Percentage expression of dependence of a management organizational structure on the size of an enterprise
- Figure 2. Percentage expression of dependence of the number of management levels on the size of an enterprise
- Figure 3. Percentage expression of dependence between management and organizational structure, size, and profitability of enterprises
-
- Table 1. Development trend in organizational and management structures based on the size
- Table 2. Dependence between the number of management levels and the size of an enterprise
- Table 3. Dependence between the number of management levels and sector affiliation
- Table 4. Dependence between management structure and the number of management levels in the enterprises
- Table 5. Dependence between management organizational structure, size, and profitability of enterprises
-
- Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational Structure. Procedia – Social and Behavioral Sciences, 230, 455-462.
- Al Taweel, I. R. (2019). Management of organizational cultures and job performance: the case for gcc companies. Marketing and Management of Innovations, 3, 265-271.
- Alves, M. F. R., Galina, S. V. R., & Dobelin, S. (2018). Literature on Organizational Innovation: Past and Future. Innovation & Management Review, 15(1), 2-19.
- Andreeva, O. V., & Shevchik, E. V. (2017). Organizational and Financial Modeling of Transnational Industrial Clusters Sustainable Development: Experience, Risks, Management Innovation. European Research Studies Journal, 20(1), 137-147.
- Bai, W., Feng, Y., Yue, Y., & Feng, L. (2017). Organizational Structure, Cross-Functional Integration and Performance of New Product Development Team. Procedia Engineering, 174, 621-629.
- Battaïa, O., Otto, A., Sgarbossa, F., & Pesch, E. (2018). Future Trends in Management and Operation of Assembly Systems: From Customized Assembly Systems to Cyber-Physical Systems. Omega, 78, 1-4.
- Belas, J., Demjan, V., Habánik, J., Hudáková, M., & Sipko, J. (2015). The Business Environment of Small and Medium-Sized Enterprises in Selected Regions of the Czech Republic and Slovakia. Ekonomika a Management, 18(1), 95-110.
- Belas, J., Amoah, J., Petráková, Z., Kliuchnikava, Y., Bilan, Y. (2020a). Selected Factors of SMEs Management in the Service Sector. Journal of Tourism and Services, 21(11), 129-146.
- Belas, J., Gavurova, B., Cepel, M., & Kubak, M. (2020b). Evaluation of Economic Potential of Business Environment Development by Comparing Sector Differences: Perspective of SMEs in the Czech Republic and Slovakia. Oeconomia Copernicana, 11(1), 135-159.
- Belas, J., & Sopkova, G. A. (2016). A model of Entrepreneurial Orientation. Transformations in Business & Economics, 15(2b), 630-644.
- Budíková, M., Králová, M., & Maroš, B. (2010). Průvodce Základními Statistickými Metodami. Grada Publishing A.S. (In Czech).
- Burton, R., M., Håkonsson, D. D., Nickerson, J., Puranam, P., Workiewicz, M., & Zenger, T. (2017). GitHub: exploring the space between boss-less and hierarchical forms of organizing. Journal of Organization Design, 6(1), 10.
- De Carvalho Borella, M., R., Barcellos, P. F. P., Sachdev, H., Merz, G. R., & Galelliet, A. (2017). Organizational structure, service capability and its impact on business performance of logistics providers in the B2B context. Gestao E Producao, 24(2), 355-369. (In Portuguese).
- Fialová, V., Hronová, P (2016). Innovation Within The Moravskoslezský Region – Small And Medium Sized Enterprises. International Journal of Entrepreneurial Knowledge, 4(1), 30-39.
- Govender, P., & Parumasur, S. B. (2016). Organizational diagnosis, the stepping stone to organizational effectiveness. Corporate Board: Role, Duties and Composition, 12(2), 65-76.
- Greenwood, P. E., & Nikulin, M. S. (1996). A Guide to Chi-Squared Testing. John Wiley & Sons.
- Gulden, M., Kondybayeva, S., Raigul, D., Dauren, T., Asselet, A., & Foroudi, P. (Rev. ed.). (2020). Quality Management of Higher Education: Innovation Approach from Perspectives of Institutionalism. An Exploratory Literature Review. Cogent Business and Management, 7(1).
- Heorhiadi, N., Druhov, O., Vilhutska, R., Bets, M., Stoianovskyi, A., & Folwarski, M. (2018). Organizational Development in Banks Management Systems. Banks and Bank Systems, 13(3), 1-11.
- Horák, J., (2020). Bankruptcy Prediction of Small and Medium-Sized Industrial Companies in Czechia. In F. Uslu (Ed.), Proceedings of the 7th International Conference on Education and Social Sciences (INTCESS 2020), 1206-1212. Istanbul, Turkey.
- Jankelová, N., Jankurová, A., Beňová, M., & Skorková, Z. (2018). Security of the business organizations as a result of the economic crisis. Entrepreneurship and Sustainability Issues, 5(3), 659-671.
- Jenoui, K., & Abouabdellah, A. (2018). A decision-making-approach for the purchasing organizational structure in Moroccan health care system. Advances in Science, Technology and Engineering Systems, 3(2), 195-205.
- Kasych, A., & Vochozka, M. (2017). Theoretical and methodical principles of managing enterprise sustainable development. Marketing and Management Innovations, 2, 298-305.
- Kidschun, F., Hecklau, F., Orth, R., Wackernagel, P. J., & Singer, K. (2020). Development of an Organizational Structure Model as a Basis for the Assessment of the Digital Transformation of Organizations. Proceedings of the 15th European Conference on Management, Leadership and Governance, 217-226.
- Kljucnikov, A., Belas, J., & Smrcka, L. (2016). The Role of Risk-Taking and Competitive Aggressiveness in Management of SMEs. Polish Journal of Management Studies, 14(1), 129-139.
- Klun, M., & Trkman, P. (2018). Business process management – at the crossroads. Business Process Management Journal, 24(3), 786-813.
- Kramarenko, A., & Kvitka, A. (2018). From big business to small and medium-sized enterprises: factors and prospects. Problems and Perspectives in Management, 16(2), 42-48.
- Li, W. (2019). Study on the Idea of the Innovation of the Organizational Structure of Small and Medium-Sized Enterprises in the New Economic Period. Proceedings of the 5th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2019), 489-492.
- Mao, P., Li, Sh., Ye, K., & Cai, H. (2017). A field theory based model for identifying the effect of organizational structure on the formation of organizational culture in construction projects. KSCE Journal of Civil Engineering, 21(1), 45-53.
- Max, M. (2020). Traditional organizations and crisis management in transition – organizational perspectives on new dynamics of independent civil engagement. Journal of Contingencies and Crisis Management, 29(2-11).
- Naveed, R. T., Jantan, A. H., Saidu, M. B., Bhatti, S. M., & Nisar, T. (Rev. ed.). (2017). The validation of the organizational change construct using confirmatory factor analysis. Cogent Business and Management, 4(1).
- Nosratabadi, S., Bahrami, P., Palouzian, Kh., Mosavi, A., & Foroudi, P. (Rev. ed.). (2020). Leader cultural intelligence and organizational performance. Cogent Business & Management, 7(1).
- Parida, V., & Wincent, J. (2019). Why and how to compete through sustainability: a review and outline of trends influencing firm and network-level transformation. International Entrepreneurship and Management Journal, 15(1-19).
- Pártlová, P. (2017). Indication of Changes in Projecting Organizational Structures under the New Economy. Studia Commercialia Bratislavensia, 10(38), 175-187.
- Rajiani, I., & Ismail, N. (2019). Management Innovation in Balancing Technology Innovation to Harness Universities Performance in the Era of Community 4.0. Polish Journal of Management Studies, 19(1), 309-321.
- Resler, M., Kurylo, M., Logvinenko, M., Makhinchuk, V., & Ivanyshchuk, A. (2018). Analysis of current trends in innovation and investment activity of Ukrainian metallurgical enterprises. Investment Management and Financial Innovations, 15(2), 116-128.
- Schwer, K., & Hitz, C. (2018). Designing Organizational Structure in The Age of Digitalization. Journal of Eastern European and Central Asian Research, 5(1), 11.
- Setyanto, E., Ikhwan, A., Amin, Sh., Shabir M. U., & Suharto, S. (2019). Challenges of the Change Management for Managing People and Organizational Culture. International Journal of Recent Technology and Engineering, 8(2), 3822-3826.
- Šmite, D., Moe, N. B., Wigander, J., & Esser, H. (2019). Corporate-Level Communities at Ericsson: Parallel Organizational Structure for Fostering Alignment for Autonomy. In P. Kruchten, S. Fraser & F. Coallier (Eds.), Agile Processes in Software Engineering and Extreme Programming. XP 2019. Lecture Notes in Business Information Processing, 355. Springer, Cham.
- Straková, J., Rajiani, I., Pártlová, P., Váchal, J., & Dobrovič J. (2020). Use of the Value Chain in the Processes of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic. Sustainability, 12(4), 1520.
- Strese, S., Meuer, M. W., Flatten, T. C., & Brettel, M. (2016). Organizational antecedents of cross-functional coopetition: The impact of leadership and organizational structure on cross-functional coopetition. Industrial Marketing Management, 53, 42-55.
- Sytanto, E., Ikhwan, A., Amin, Sh., Shabir M. U., & Suharto, S. (2019). Challenges of the Change Management for Managing People and Organizational Culture. International Journal of Recent Technology and Engineering, 8(2), 3822-3826.
- Tejada Estrada, G. C., Rengifo Lozano, R. A., Boy Barreto, A. M., & Rodríguez Chirinos, J. V. (2020). Organizational Structure and Control in a Bureaucratic Management Model. Revista Venezolana De Gerencia, 25(89), 66-78. (In Spanish).
- Tworek, K., Walecka-Jankowska, K., & Zgrzywa-Ziemak, A. (2019). Towards Organizational Simplexity – A Simple Structure in A Complex Environment. Engineering Management in Production and Services, 11(4).
- Váchal, J., Pártlová, P., & Straková, J. (2017). Business process projection in relation to the internationalization of the external environment of industrial companies. Innovative Economic Symposium 2017 (IES2017): Strategic Partnership in International Trade, 39.
- Valaei, N., Nikhashemi, S. R., & Javan, N. (2017). Organizational factors and process capabilities in a Km Strategy: toward a unified theory. Journal of Management Development, 36(4), 560-580.
- Vochozka, M., & Machová, V. (2017). Enterprise Value Generators in the Building Industry. SHS Web of Conferences, 39.
- Vrbka, J., & Rowland, Z. (2020). Using Artificial Intelligence in Company Management. Sustainable Growth and Development of Economic Systems. In S. Ashmarina, M. Vochozka & V. Mantulenko (Eds.), Digital Age: Chances, Challenges and Future. ISCDTE 2019. Lecture Notes in Networks and Systems, 84, 422-429. Springer, Cham.
- Wedl, C., Ben-Menahem, Sh. M., He, F., & Von Krogh, G. (2018). What Is Innovation Anyway? The Coevolution of Innovation Controls and Deep Organizational Structures for Innovation. Academy of Management Proceedings, 2018(1).
- Zakrzewska-Bielawska, A. (2016). Perceived mutual impact of strategy and organizational structure: Findings from the high-technology enterprises. Journal of Management & Organization, 22(5), 599-622.