Changes in the Organizational Structures of Grouped Enterprises

Authors

Keywords:

autonomy of subsidiaries, simplicity of organizational structures, parent company, subsidiary

Abstract

The goal of the study is to present the problem of simplification of organizational structure and decentralization of decision-making powers in grouped companies during a period of significant changes (transformations) in the environment. Around the main objective formulated in this way, the following problem was posed in the form of a question: is there a tendency to decentralize management and simplify organizational structures in subsidiaries? In order to achieve the objective and solve the problem, an analysis of available secondary sources (scientific literature, organizational documents of the companies under study) and empirical research was carried out in two subsidiaries of German automotive concerns located in Poland. The research, in the form of interviews, was conducted with local management between 2020 and 2022 and aimed at recognizing the changes made in the organizational structure of the companies. The research showed that during the period of significant changes (transformations) in the environment, headquarters delegated additional decisionmaking powers to subsidiaries and their structures did not overextend. The purchasing function and market-oriented functions were strengthened. The results presented in the article can be used by other multi-entity organizations to redesign their subsidiary structures into more resilient ones that are more resistant to the difficult-to-predict phenomena emerging in the organization’s environment. The article has a theoretical and research character.

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Published

2024-02-16
Received 2023-04-27
Accepted 2023-07-06
Published 2024-02-16