Organizational Design of an Enterprise

Syllabus

Thematic scope of lectures: 1. Organizing and Organization: The Firm as an Open System. The purpose of the existence of organizations. The historical development of firms and key milestones—technological innovations and industrial revolutions that shaped modern enterprises. Definition of basic concepts: organization, organizing, and the distinction between an organization and a firm. Organizing as a managerial function and its role in management. Characteristics of organizations: instrumentality, formalization, organizational culture, and organizational structure. 2. Organizational Structure and Its Dimensions I – Formalization and Specialization. The firm as a socio-economic system and the importance of organizational structure for effective management. Organizational dimensions—contextual and structural—and their interrelationships. Formalization, the degree of organization, organizational rules and standards, and their impact on organizational functioning. Job specialization as a key tool for increasing productivity, as well as its limits in terms of flexibility and employee motivation. 3. Organizational Structure and Its Dimensions II – Hierarchy. The hierarchy dimension of organizational structure—span of control and its influence on the shape of organizational structures. Narrow and wide spans of control. Approaches to determining the optimal span of control. Tall and flat organizational structures and their advantages and disadvantages. Organizational downsizing and lean management and their impact on organizational structure. Organizational memory and the loss of organizational memory as a consequence of lean management. 4. Organizational Structure and Its Dimensions III – Centralization, Professionalism, and Personnel Ratios. Centralization and decentralization of decision-making authority in organizations, their advantages, risks, and relationship to formalization. Professionalism as a structural dimension based on professional autonomy, education, and professional standards. Analysis of personnel ratios as a tool for evaluating workforce structure and human resource management. 5. Delegation – The Path to Decentralization. Delegation as a key managerial competence and a tool for effective management of time, people, and performance. The essence of delegation, its benefits for managers, subordinates, and the organization, and its connection to coaching and mentoring leadership approaches. A systematic delegation process, selection of appropriate tasks, barriers to delegation and ways to overcome them. Practical tools—delegation matrices, communication principles, and feedback. Delegation as a strategic tool for people development and sustainable organizational growth and its impact on organizational structure. 6. Configuration and Types of Organizational Structure. Configuration of organizational structure and its basic types in the context of modern organizational management. Vertical and horizontal differentiation of structures, issues of centralization and decentralization, organizational downsizing, and the importance of formal and informal relationships. Line, functional, line-and-staff, functionalized, and divisional organizational structures—their advantages, disadvantages, and practical applications. The relationship between organizational design and flexibility, efficiency, coordination, and the organization’s ability to respond to change in a dynamic environment. 7. Globalization of Processes: The Impact of Outsourcing, Offshoring, and Shared Services Centers on Organizational Structure. Globalization of business processes and its impact on organizational structures in the global economy. Corporate sourcing strategies, including outsourcing, offshoring, nearshoring, onshoring, reshoring, multisourcing, and Shared Services Centers. The impact of outsourcing and process globalization on organizational design. Network-based and virtual organizational structures. 8. Groups and Teams in the Organizational Structure of the Firm. The importance of work groups and teams as fundamental building blocks of organizational structure. Differences between work groups and teams, the principle of synergy, and factors influencing team effectiveness. Team typologies based on objectives, duration, and relationship to formal organization, including modern forms of teams in a globalized environment. Team-based organization and horizontal organizational structures as responses to dynamic business environments, with emphasis on process orientation, flexibility, collaboration, and customer focus. 9. Adaptation of Organizational Structure in a Complex and Dynamic Environment. The relationship between organizational structure and the dynamics of the external environment under conditions of complexity and uncertainty. The contingency approach to management and differences between mechanistic and organic organizational structures. Environmental uncertainty factors, complexity, and environmental stability and their impact on organizational design. Ways in which organizations respond to uncertainty and actively shape their external environment through various strategies and relationships. 10. Organizational Change. Management of organizational change as a key managerial competence in a dynamic and uncertain environment. Causes, types, and dimensions of change, and distinctions between organizational flexibility, adaptability, and agility. Basic models of planned change, including problem-oriented and positive approaches, such as Lewin’s model, Kotter’s model, and Appreciative Inquiry. Business Process Reengineering (BPR), its historical development, principles, and relationship to Total Quality Management (TQM) as a tool for radical organizational transformation. 11. Bureaucracy and Its Impact on Organizational Structure. Bureaucracy as an organizational model. Criticism of bureaucracy. Advantages and disadvantages of bureaucratic organizational arrangements. The role of bureaucracy in contemporary organizations. Post-bureaucratic concepts and their efforts to minimize the negative effects of bureaucracy. 12. Adhocracy and Holacracy in the Organizational Structure of the Firm. Adhocracy and holacracy as modern alternatives to traditional bureaucracy. Their advantages and disadvantages and their impact on organizational structure. 13. Contemporary Trends in Organizational Design. New market conditions—rapidly changing environments, digitalization, and evolving employee and customer expectations. Agility and its impact on organizational structure, flexible structures, self-managing teams, and continuous process improvement. Agile methodologies—Scrum and Kanban. Remote work and hybrid models enabling flexibility and cost optimization. Coworking centers—their emergence, development, advantages, and disadvantages. Thematic scope of seminars: 1. Introduction to Organizing. Introduction to the subject area. Course methodology and content. Requirements for obtaining course credit and passing the exam. Allocation of seminar papers among students and explanation of course completion requirements. Organizing and organization. Case study Organization and the Firm – The Cadillac Case Study (Skorková, 2025). Discussion on the contemporary goal of the firm—profit maximization versus long-term sustainability. Why organizational goals and strategy influence organizational structure. Case studies: Organization in Metaphors and The Firm as an Open System(Skorková, 2025). 2. Organizational Structure and Its Dimensions I – Formalization and Specialization. The formalization dimension of organizational structure, the degree of organization within the firm, and organizational rules and standards. Vertical differentiation of organizational structure—levels of management in the Morning Star Company (Skorková, 2025). Degree of organization in the accounting department and the case study Degree of Organization in a Fast-Food Restaurant (Skorková, 2025). Case study Boeing 737 MAX – When Excessive Specialization and a Power Mentality Undermine Safety. 3. Organizational Structure and Its Dimensions II – Hierarchy. The hierarchy dimension of organizational structure—span of control and its influence on the shape of organizational structure. Case studies: Span of Control, Span of Control According to Graicunas, Span of Control According to Stieglitz, and Span of Control in an Audit Team (Skorková, 2025). Answering case study questions and class discussion. 4. Organizational Structure and Its Dimensions III – Centralization. Issues of centralization and decentralization in organizational structure, their advantages, disadvantages, and practical implications for firms. Case studies (Skorková, 2025): Walmart’s Failure in Germany, Centralization of Warehouses at Vafo Prague, and Decentralization at Lidl. 5. Delegation – The Path to Decentralization. Delegation as a fundamental managerial skill. Case studies on delegation: Delegation in Prútik Company and Delegation in Vranová & Partners (Skorková, 2025). 6. Configuration and Types of Organizational Structure. The transition of companies from traditional functional structures through divisional to matrix and multidimensional arrangements. Concrete company examples such as Dow Corning, Henkel, and Procter & Gamble (Skorková, 2025). 7. Globalization of Processes: The Impact of Outsourcing, Offshoring, and Shared Services Centers on Organizational Structure Case study: Zappos. Comparison of the advantages and disadvantages of outsourcing and shared services centers. Case study: The Ethics of Offshoring (Skorková, 2025). 8. Groups and Teams in the Organizational Structure of the Firm. Case studies: Belbin’s Team Roles. Pitfalls of teamwork—groupthink and the Abilene Paradox (Skorková, 2025). 9. Adaptation of Organizational Structure in a Complex and Dynamic Environment. Case studies: Volkswagen Group, I. D. C. Holding, and Risks of Cartel Agreements (Skorková, 2025). 10. Organizational Change. Case study: Kodak. The transformation of Philips in the case study Philips (Skorková, 2025). Case study: ING Hubs Slovakia. 11. Bureaucracy and Its Impact on Organizational Structure. The story of Alaska Airlines and Project Raindrops at AT&T (Skorková, 2025). Project presentations. 12. Adhocracy and Holacracy in Organizational Structure. Case studies: Valve Corporation and Zappos (Skorková, 2025). Project presentations. 13. New Trends in Organizational Design. Examples: Buurtzorg, case study FAVI, and RHD (Skorková, 2025). Project presentations.