engleski

STRATEGY AS A KEY DETERMINANT OF ORGANIZATIONAL DESIGN

In the development of organizational theory and practice, organizational design has attracted the attention of many theorists and practitioners in the last few decades. More recent research emphasizes the identification of key determinants of organizational design because a welldesigned organizational solution affects business success. The purpose of this paper is to explain the role and importance of strategy as a key determinant of organizational design. In this regard, the contemporary trends in the development of organizational design, as well as the most important models of organizational design, are explained first. Particular emphasis is placed on the Star Model as a starting point for understanding the importance of strategy in organizational design. The specificity of the Star Model is that it emphasizes the impact of strategy on other elements of organizational design, such as capabilities, people, structure, rewards, and processes. The central part of the paper presents a case study of “Atlantic Grupa”, as one of the largest Croatian companies. The analysis of key determinants of the current strategy of “Atlantic Grupa” was based on two sources of information—documents listed on the official web site of the company and numerous external data sources of information. Finally, the impact of strategy on the organizational solution of “Atlantic Grupa” is analyzed. In this context, the relationship between strategy and organizational solution of “Atlantic Grupa” has been established, thus confirming that the organizational solution follows the strategy and that the strategy is a key determinant of organizational design of contemporary organizations. This case study can, therefore, serve as an example of how a wellplaced strategy can influence the good choice of organizational solution, with the ultimate goal of improving business performance.

Organizational design ; Strategy ; Star Model ; Organizational performance ; Atlantic Grupa

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