Development trends in organizational and management structures
-
Author(s)Jarmila StrakováLink to ORCID Index: https://orcid.org/0000-0002-3048-3467
,
Jan VáchalLink to ORCID Index: https://orcid.org/0000-0003-0627-1517
,
Jaroslav KollmannLink to ORCID Index: https://orcid.org/0000-0003-4110-145X
,
Milan TalířLink to ORCID Index: https://orcid.org/0000-0002-6510-1297
-
DOIhttp://dx.doi.org/10.21511/ppm.19(2).2021.39
-
Article InfoVolume 19 2021, Issue #2, pp. 495-506
- Cited by
- 1475 Views
-
664 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.
-
Holacracy and Obliquity: contingency management approaches in organizing companies
Emil Velinov ,
Vasko Vassilev ,
Igor Denisov
doi: http://dx.doi.org/10.21511/ppm.16(1).2018.32
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 330-335 Views: 3588 Downloads: 1150 TO CITE АНОТАЦІЯThe paper aims to examine the development of modern innovative management methods and practices such as Holacracy, Obliquity, Adhocracy and Sociocracy, which are novelty in the Management science and practice. The study illustrates contingency approaches in designing, managing and developing agile companies from wide varieties of industries. The paper sheds light on contemporary methods in organizing, planning and setting goals of companies in a post-knowledge era. It is like an operating system for business that requires the installation of different applications as applications for hiring employees, for setting salaries, for planning or logistics. In the paper, literature review on management innovations is conducted and subsequently statistical operationalization through STATA software has been employed to examine how particular organizations design and set up their organizational structures such as lean, agile or scrum. Paper results show that smaller companies are more agile and they tend to acquire Holacratic Management models thanks to the fact that self-managing teams exist internally and their organizational structures are flatter and more adaptive in comparison to the multinational corporations. Consequently, the paper concludes with suggestions on innovative management implementations for future development of companies and emphasizes the need for further research on what is the impact of Holacracy and Obliquity on shaping the organizational culture of companies.
-
The development of the insurance market of Ukraine amid the global trends in insurance
Investment Management and Financial Innovations Volume 14, 2017 Issue #1 (cont.) pp. 211-216 Views: 1848 Downloads: 805 TO CITE АНОТАЦІЯThe insurance market of Ukraine is a part of the global economic environment, which brings together national insurance markets around the world. The paper studies the functioning of the insurance market of Ukraine taking into account the latest trends in the world economy. It notes an extremely small volume of premiums, insufficient coverage of the population and business entities. It is emphasized that the main attention of the experts of the insurance market of Ukraine is focused on its reaction to the annexation of the Crimea and the military conflict in Donbas. It identifies trends, conditions and development factors of the Ukrainian insurance market, as well as its prospects and the role of Ukraine on the global insurance market.
-
From big business to small and medium-sized enterprises: factors and prospects
Anton Kvitka ,
Anna Kramarenko
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.04
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 42-48 Views: 1798 Downloads: 485 TO CITE АНОТАЦІЯThe article considers changes in organizational structure (in the context of a shift in favor of small business), the main factors and long-term prospects of these changes. Enhancing the role of small and medium-sized enterprises (SMEs) in many countries of the world is described. The concept of SMEs, as well as the range of indicators measuring organizational structure, is defined. Modern trends that indicate the increasing role of small and medium-sized enterprises are shown. On the basis of dynamics of economic indicators in Europe and the United States, the increasing role of small and medium enterprises is investigated. It is shown that the increase in the share of the service sector is the result of market saturation. The influence of the service sector on the shifts in the organizational structure in the period of global economic changes, as well as the influence on the increasing share of more flexible and innovative small and medium-sized enterprises in total employment and income, is argued. Increased competition in the process of saturation of the market is shown as one of the factors of the development of personal needs that promote individual entrepreneurs, inventors and innovators, for whom a complex and rigid structure of large organizations is the factor which limits the growth and interferes with their becoming the engines of scientific and technological progress. It is proved that in conditions when large corporations find themselves unable to identify a new micro niche quickly, small and medium enterprises are becoming the most convenient form for the realization and promotion of innovation. The transition from the dominance of large corporations to the dominance of SMEs in the process of substitution of technological modes is investigated. The increasing role of small and medium firms in the context of long-term trends of economic development is considered.
