Anali Ekonomskog fakulteta u Subotici (Jan 2015)
Influence of globalization on the modern organizational design
Abstract
The business environment of modern organizations becomes more complex, which results in the increasing complexities of organizations. Changes are inevitable, they are happening all the time, and considering that there is no best solution for long term, organizations have to adapt by modification of their organizational properties. The aim of this paper is to point out the positive and negative effects of globalization on the organizational design of modern organizations. By analyzing data from secondary sources, the tested hypothesis refers on assumption that globalization affects the change of organizational design that can be presented via the properties of organization such as complexity, formalization, centralization, span of control, communication, information flow and motivation. Special attention in this paper is focused on harmonization of the organizational properties with each other, as well as their harmonization with the situations in the environment, incurred as a result of globalization. Results indicate that dynamic business environment requires a flexible organization that will be able to respond to the challenges of more intensive changes. It follows from this that the organization will have to adapt their own design to a given situation if it wants to achieve its primary aim, which is long-term existence in the market. Conclusions of the paper are based on the theory of contingency that strives for harmony between all of the elements of the organizational context and for harmony between the design parameters and the situations in the environment. This represents an inevitable and primary requirement for all organizations in globalization conditions. The offered recommendations can be used in daily business operations of various organizations in order to increase efficiency and improve working conditions and employee satisfaction in these organizations.
