Key factors of organizational and management structures in the formation of competitive strategy

Abstract

The state of organizational and management structures and the expected development in this issue is the subject of research, the outputs of which are presented in the article submitted. The research period covers 2016 - 2020; the test sample of enterprises (about 460 entities) includes all size categories and the manufacturing and service sectors. The research started in a period of strong economic growth and continues in the current period of economic downturn. Three research hypotheses were formulated. The first hypothesis concerning the existence of statistical dependence between the organizational and management structure of the enterprise and its size was confirmed. The remaining two hypotheses were rejected. Specifically, business managers did not identify the dominant departmental organizational structure as an instrument of profitability and sustainability. Similarly, the hypothesis that the enterprise managers did not consider Research and Development, Quality, and Investment departments as pro-growth tools were not confirmed, as the identified pro-growth tools are the Economic and Production departments and controlling. This result demonstrates the managers´ misunderstanding of the objectives, mission, and especially the function of an individual organizational unit in the corporate system. The conclusion of the paper presents the prediction for further development. Based on the obtained outcomes, a pro-growth organizational rule is defined. The main objective of all new management tools must be to ensure the production and provision of services to ensure the maximum possible satisfaction of customer requirements and to maximize the achieved margin. As confirmed by the literary research, this process has already started in the European Union countries. Many companies are fully implementing these principles in their daily management and decision-making practices.