Designing Organizational Structure In The Age Of Digitization

Authors

  • Karlheinz Schwer University of Economics Prague
  • Christian Hitz University of Economics Prague

DOI:

https://doi.org/10.15549/jeecar.v5i1.213

Keywords:

Organizational Structure, Age of Digitization, Holocracy, Hierarchy, Digital Network, Digital Innovation

Abstract

The digital transformation will bring about extreme changes, as at the time when the steam engine was invented. To generate money from the emerging opportunities, companies must adapt very quickly. For this, agile forms of organization such as Holacracy are needed where the employees take over the management functions. Is the classic hierarchy still needed in companies?

The following is a brief overview of traditional organizational forms. On the basis of this, the digital innovation capability of hierarchical organizations is analysed. Then it is shown how the new form of organization Holacracy works and how to move from a hierarchical organization to a holocratic one, to fulfill the need of agility. John P. Kotter replied, the hierarchy must not be replaced. He points out that dynamic network organization forms such as Holacracy are important at the beginning of the company's lifecycle. The hierarchy is better suited for stable market environments.

Author Biographies

Karlheinz Schwer, University of Economics Prague

The author Karlheinz Schwer is a PhD student at the University of Economics in Prague. He works as a lecturer and management consultant at the Zurich University of Applied Sciences in Switzerland. Prior to that, he worked as a management consultant on projects in various industries.

Christian Hitz, University of Economics Prague

The co-author Christian Hitz is a PhD student at the University of Economics in Prague. He works as a lecturer and management consultant at the Zurich University of Applied Sciences (ZHAW) in Switzerland. He is also head of the IT Strategy & Management department at the ZHAW School of Management and Law. Prior to that, he worked as a management consultant on projects in various industries.

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Published

2018-05-01

How to Cite

Schwer, K., & Hitz, C. (2018). Designing Organizational Structure In The Age Of Digitization. Journal of Eastern European and Central Asian Research (JEECAR), 5(1), 11. https://doi.org/10.15549/jeecar.v5i1.213