MODERN ORGANIZATIONAL STRUCTURES: TRANSFORMATION FROM VERTICAL TO FLEXIBLE

UDC 334.021.1

  • Novikova Irina Vasil’уevna – DSc (Economics), Head of the Department of Management, Business Technology, Sustainable Development. Belarusian State Technological University (13а, Sverdlova str., 220006, Minsk, Republic of Belarus). E-mail: xenia2012@belstu.by

  • Hamse Layal – PhD student, the Department of Management, Business Technology, Sustainable Development. Belarusian State Technological University (13а, Sverdlova str., 220006, Minsk, Republic of Belarus). E-mail: l.hamzeh@gmail.com

Key words: modern organization structures, vertical organization structure, flat (horizontal) structure, management, globalization, modern technologies, information-based companies, hypercompetition.

For citation: Novikova I. V., Layal Hamse. Modern organizational structures: transformation from vertical to flexible. Proceedings of BSTU, issue 5, Economics and Management, 2021, no. 1 (244), pр. 103–116. DOI: https://doi.org/10.52065/2520-6877-2021-244-1-103-116.

Abstract

The end of the 20th and the early 21st century indicated the start of a new “dynamic era” of organizational structures. Continuous and fast change, swift industrial growth, and globalization inspired new thoughts on the course of action of organizations and their structures in order to achieve competitive edge. The new “managerial transformation” that is presently occurring pushes managers to utilize contemporary and flexible ways and approaches of management that can meet existing challenges in the market and society. A competing position is achieved by those organizations that are ready for essential modifications and who employ techniques and models of constant development.

In this article we focus on the conditions that govern the structures of modern organizations, and the factors that make these organizations transform their management methods and operations to adapt new dynamic forms and models. We discuss the modern forms of management in organizations which are mainly characterized by flexibility and agility. We also present examples of flexibility in modern organizational management and the facts the show the effectiveness and efficiency of these models.

References

  1. Burrell G., Morgan G. Sociological paradigms and organizational analysis. London, Heinemann, 1979. 37 p.
  2. Drucker P. F. The coming of the new organization. Harvard Business Review, 1988, no. 66, pp. 45–53.
  3. McGrath R. G. The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard, Harvard Business Review Press, 2013. 240 р.
  4. Barton D. Core capabilities and core rigidities: A paradox in managing new product development. Strategic management journal, 1992, no. 13 (S1), pp. 111–125.
  5. Boisot M. The creation and sharing of knowledge. The strategic management of intellectual capital and organizational knowledge, 2002, April, pp. 65–77.
  6. Nohria N., Eccles R. G. Networks and organizations: Structure, form, and action. Boston, MA, Harvard Business School Press, 1992. 544 р.
  7. Voitov I., Novikova I. Economics Digitalization as a base for changing the globalization model: trends and challenges. Trudy BGTU [Proceedings of BSTU], issue 5, Economics and management, 2019, no. 1, рр. 13–20.
  8. Yip G. S., Hult G. T. Total Global Strategy: Managing for Worldwide Competitive Advantage. 3rd edition. NJ, Prentice-Hall, 2011. 320 p.
  9. Rugman A. The End of Globalization. London, Random House, 2012. 256 p.
  10. Steger U. Discovering the new pattern of globalization. Ladenburg, Gottlieb Daimler-und-Karl Benz-Stiftung, 1998.
  11. D’aveni R. A. 3-D printing will change the world. Harvard business review, 2013, no. 91 (3), рр. 34–35. Available at: https://hbr.org/2013/03/3-d-printing-will-change-the-world (accessed 07.10.2020).
  12. Gu W., Surendra G. The effect of organizational innovation and information technology on firm performance. International Productivity Monitor, 2004, no. 9, pp. 37–51.
  13. Whitman M. N. New world, new rules: The changing role of the American corporation. Harvard, Harvard Business Press, 1999. 261 p.
  14. Arsenault A. H., Castells M. The structure and dynamics of global multi-media business networks. International Journal of Communication, 2008, no. 2, рр. 707–748.
  15. McCarthy I. P., Lawrence T. B., Wixted B., Gordon B. R. A multidimensional conceptualization of environmental velocity. Academy of management review, 2010, no. 35 (4), pp. 604–626.
  16. Robertson M., Scarbrough H., Swan J. Knowledge creation in professional service firms: Institutional effects. Organization Studies, 2003, no. 24 (6), рр. 831–857.
  17. Sinkovics N., Pezderka N., Sinkovics R. R., Jean R. J. B. Do born global SMEs reap more benefits from ICT use than other internationalizing small firms. Handbook of research on born globals, Cheltenham, UK, Edvard Elgar Publ., 2012, pp. 185–213.
  18. March J. G. Exploration and exploitation in organizational learning. Organization science, 1991, no. 2 (1), pp. 71–87.
  19. D’aveni R. A. Hypercompetition. New York, Free Press, 1994. 448 p.
  20. Saxenian A. The origins and dynamics of production networks in Silicon Valley. Research policy, 1991, no. 20 (5), pp. 423–437.
  21. Volberda H. W. Building the flexible firm: How to remain competitive. Oxford, Oxford University Press, 1999. 384 p.
  22. Bahrami H., Evans S. Super-Flexibility Knowledge Enterprises. Luxemburg, Springer, 2010. 228 p.
  23. Grant R. M. Prospering in dynamically-competitive environments: Organizational capability as knowledge integration. Organization science, 1996, no. 7 (4), pp. 375–387.
  24. Deloittes Divestments: Creating Shareholder Value. 2013. Available at: https://www2.deloitte.com/content/ dam/Deloitte/uk/Documents/corporate-finance/deloitte-uk-ma-upfront-in-brief-divestments.pdf (accessed 07.10.2020).
  25. Weissman R., Mokhiber R. On the Rampage: Corporate Predators and the Destruction of Democracy. Monroe, Maine, Common Courage Press, 2005. 276 p.
  26. Humanity United Exploitative labor practices in the global palm oil industry, 2012. Available at: http://humanityunited.org/pdfs/Modern_Slavery_in_the_Palm_Oil_ Industry.pdf (accessed 07.10.2020).
  27. Shah D., Rust R. T., Parasuraman A., Staelin R., Day G. S. The path to customer centricity. Journal of service research, 2006, no. 9 (2), pp. 113–124.
  28. Lee J. Y., Sridhar S., Palmatier R. W. Customer-centric org charts aren’t right for every company. Harvard Business Review, 2015, July–August, рр. 1–7.
  29. Edwards J., Ketchen D., Short J. Mastering strategic management. British Columbia, BC Campus, 2014. 281 p.
  30. Abbott A. The system of professions: An essay on the expert division of labor. Chicago, University of Chicago Press, 1988. 452 p.
  31. Enhancing organizational performance. Washington, DC, The National Academies Press, 1997. 304 p.
  32. Freidson E. Professional powers: A study of the institutionalization of formal knowledge. Chicago, Chicago University of Press, 1986. 260 p.
  33. Huber G. P. A theory of the effects of advanced information technologies on organizational design, intelligence, and decision making. Academy of management review, 1990, no. 15(1), pp. 47–71.
11.01.2021