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Publication type: Article in scientific journal
Type of review: No review
Title: Designing organizational structure in the age of digitization
Authors: Schwer, Karlheinz
Hitz, Christian
DOI: 10.21256/zhaw-3290
Published in: Journal of Eastern European and Central Asian Research
Volume(Issue): 5
Issue: 1
Issue Date: 2018
Publisher / Ed. Institution: Institute of Eastern Europe and Central Asia
ISSN: 2328-8272
Language: English
Subjects: Digital innovation; Digital network; Holocracy; Organizational structure
Subject (DDC): 658.4: Executive Management
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.
Fulltext version: Published version
License (according to publishing contract): CC BY 3.0: Attribution 3.0 Unported
Departement: School of Management and Law
Organisational Unit: Institute of Business Information Technology (IWI)
Appears in Collections:Publikationen School of Management and Law

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