Petra Pártlová, Jan Váchal
Institute of Technology and Business in České Budějovice, Department of Management, Czech Republic
DOI: https://doi.org/10.31410/eraz.2018.875
4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7
Abstract
The current environment of business entities operating in market economies can be described as an environment of permanent changes complemented by the aspect of chaos with a different degree of organization. This fundamental change compared to the enterprise environment in the last century naturally implies the necessity of corporate system organization and structure. This concerns both the basic building elements of corporate system, such as vision, mission, strategy, organizational units, internal resources, elements of meso environment, control mechanisms, competency relations of corporate infrastructure, as well as business processes, competency relations, communication links and, finally organizational and management structures the submitted contribution focuses on. The above mentioned elements are in foreign literature referred to as “Enterprise Architecture“. With a certain degree of generalization, it can be stated that the changes occurring are at the very beginning of their transformation and their intensity will increase. In terms of the importance and function, organizational and management structure can defined as functional, spatial and integrative element operating within a corporate system that fundamentally influences other components of enterprise architecture. The research was carried out between 2016 and 2017 on a test sample of 456 enterprises from the whole Czech Republic. 109 micro enterprises, 140 small enterprises (with no more than 50 employees), 124 medium-sized enterprises (51 – 250 employees) and 83 large enterprises (with more than 250 employees) were addressed. The enterprises were further classified by the basic sector differentiation of the Czech Republic (excluding the quaternary sector) into manufacturing and industrial (187 enterprises), services (255 enterprises) and primary sector (14 enterprises), and by the extent of their operation – regional (189), national (126) and multinational (141) enterprises. For processing of the results, statistical methods were used (p-value with Pearson´s chi-squared test results).
The tests were performed at a standard significance level 0.05, i.e. with 95% reliability. Within the whole tested sample, the decline in classical management structures such as divisional and combined structure to the detriment of department structures was indicated, stating that this trend is the most pronounced in the category of large enterprises. This organizational transformation has a demonstrable relation to the enterprise orientation, where this trend was found to be the strongest in the category of industrial enterprises. There were also analyzed a number of management levels, where no dependence was found between the number of management levels and orientation of the enterprise compared to the statistically proved relation to the size of the enterprise. In terms of the number of management levels, no causal relation to the enterprise orientation was found, unlike the relation to its size. At the same time, a considerable lack of organizational and managerial skills of especially micro, small and medium-sized enterprises managers. The relation between the type of DSA and enterprise profitability was also addressed. As supplementary data, a number of managers at the individual management levels, that is, at the level of top-level management, middle-level management and at the operational level. Even in this case, the aspect of sector and size of the enterprise was taken into account. The top managers took the view of the importance and necessity of transformation of the existing organizational and management structures, highlighting the individuality of solutions according to the conditions of each enterprise. The conclusion/ final part of the contribution deals with the prediction of future development in the corporate structure in terms of organizational and management framework of business entities.
Key words
enterprise architecture, organizational and management structure, transformation of management structures