Influence of life cycle stages of the small and medium enterprise on creation of the efficient organizational structure

Introduction. In modern economics, small and medium enterprises are the majority of all functioning enterprises and a basis of each industry and sphere of economy. Therefore, they are relevant to the research of the activity of these enterprises by an organizational component as basic element of the general management. It is noted that development of these enterprises happens continuously, dynamically with the cyclic character, which demands continuous improvement of approaches to the organization of its activity and structure. Creation and development of it needs to be correlated depending on the current life cycle stage. The question about the expediency of change or improvement of the existing organizational structure at the small and medium enterprises depending on the stage of their lifecycle is raised. Aim and tasks. The purpose of the article is to form the approach to interrelation of development of small and medium enterprises and their organizational configuration at different stages of their life cycle. According to the aim, the tasks are to analyze the current level of these enterprises’ development and to investigate interrelation of the cyclical nature of their development with creation of effective organizational structure depending on a life cycle stage. Research results. It is reasonable that a certain type of organizational configuration corresponds to each life cycle stage, and is optimal for it: it gives an opportunity to consider dynamics of its development, priorities and features, simplify the choice of organizational structure to the management of small and medium enterprises. This research showed the necessity to gradually integrate the process approach to the existing organizational structure on the 2nd lifecycle stage. Such approach creates anti-crisis flexible organizational structure taking into account features of the whole enterprise’s life cycle. Thus, project life cycle was defined. Its successful completion is necessary to correlate with the enterprise’s life cycle. The carried-out analysis displayed the 4th stage as critical for development of the enterprises. To prevent this, it is necessary to use the development strategy on the 3rd stage already, implementing the innovation technologies, which define the new processes. The result is the renewal of organizational structure on the basis of process-functional approach. Conclusions. The formation of the enterprise organizational structure depending on the current life cycle stage and its features, taking into account cycles of its development, simplify the choice of an organizational component for the management of the small and medium enterprises with use of the principles of the recognized in management and the most efficient process approach. It also provides certain flexibility of the organizational component of these enterprises in need of new product development, the organization of the project teamwork, determination of the beginning and termination of the project life cycle.

Move over Mintzberg, let adhocracy give way to ambidexterity

Purpose – The purpose of this paper is to explore and compare the concepts of organizational ambidexterity, the ability of organizations to simultaneously pursue contradictory goals, and adhocracy, an organizational configuration meant to be most suitable for innovation and flexibility. It concludes that the concept of adhocracy is more useful than that of adhocracy, which has clear limitations. Design/methodology/approach – A review of literature involving the two concepts was conducted because initial comparison between the two showed close parallels between the two concepts – namely organizational ambidexterity and adhocracy – especially a shared orientation towards organizational effectiveness through innovation, amid dynamic and complex environment. Findings – Important similarities between the two concepts are that both reject the idea of “one best way” to organize. Both recommend balancing of conflicting goals. However, it appears that the contemporary environment in which organizations operate has evolved beyond the adequacy of adhocracy as a suitable archetype of effective and innovative organizations. Adhocracy suggests that pendulum-like, or iterative movement is the way to balance the contradictory goals, which is largely expected to be accomplished by the operating core and support staff. And this, too, is thought to be suitable for young and small organizations. Ambidexterity is a more comprehensive concept that includes the crux of Adhocracy, and offers a wider range of approaches and methods for balancing contradictory goals. Originality/value – To be fair to Mintzberg, adhocracy was an interesting concept in its time, but the organizations and their environments have moved beyond its realm of relevance and they need more than what the concept can give. Adhocracy may now move over and make space for ambidexterity.

Designing a social enterprise

Purpose – The purpose of this study is to examine, drawing on organization studies and stakeholder theories, the organizational configuration that enables the social enterprise to succeed by combining social and economic imperatives in a sustainable way. Design/methodology/approach – The research project is based on the analysis of a multiple cross-national case study consisting of seven social enterprises that are active in the drug rehabilitation context. Multiple rounds of data gathering and analysis combined with within-case analysis and cross-case comparison enabled the authors to evaluate the perceived, declared and subjective organizational perspectives. Findings – Results suggest that organizational performance – measured as the ability to achieve social goals, generate resources and pursue sustainability over time – depends on the implementation of a participative organizational configuration defined by the interaction of six organizational components (i.e. time and space designed for collective activities, low degree of formalization, social control, centralized decision-making processes, transformational leadership style and a workforce structure based on social stakeholders as workers). The involvement of social stakeholders emerges as a distinctive feature in the social enterprise domain. Originality/value – The study contributes to extending the configuration approach to the social enterprise domain, also as a fruitful method to manage social stakeholders and to advance the discussion on hybrid organizations.

Maintaining Organizational Viability and Performance

A certain state of an organization, in its strategic, tactical, and operational components results from a combination of elements that makes it a very complex entity. Its components should co-exist in a dynamic and constant balance, whose configuration must have flexible and adaptable reaction mechanisms. As processes increase in complexity, it becomes more difficult to manage an organization, almost in real time, in its many dimensions and configurations. It is therefore essential to identify, given its current complexity, how to guarantee holistic organizational adaptation, agent roles in configuration change, and also, how to design, organize, and manage an organization, in the resource domain, considering: 1) multiple restrictions, 2) critical needs of real time, and 3) various configurations. Using design and action research, this chapter proposes the concept of organizational configuration that, based on a macrogenesis capability, allows the creation and adaptation of transversal transformation mechanisms that, harnessing complexity, are able to maintain the necessary balance to guarantee viability and performance.

ERP Usage in Practice

This study presents the results of an exploratory study of Fortune 1000 firms and their enterprise resource planning (ERP) usage, as well as benefits and changes they have realized from ERP. The study empirically examines ERP in these organizations to provide insight into various aspects that firms can use to evaluate how they are managing their ERP systems. Findings provide information about functionality implemented, extent to which benefits are realized, extent of ERP-related organizational changes firms have realized, and the way firms measure ERP success. The study also addresses the extent to which various types of ERP software have been implemented and whether there is a relationship between type of software and benefits. Finally, it examines ERP-enabled change in light of organizational configuration.