:  Goubko M.
:  Optimal Organizational Structures for Change Management in Production
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( ):  Springer
:  2016
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:  in "New Frontiers in Information and Production Systems Modelling and Analysis Incentive Mechanisms, Competence Management, Knowledge-based Production Editors: Różewski, P., Novikov, D., Bakhtadze, N., Zaikin, O."
:  M. Goubko. Optimal Organizational Structures for Change Management in Production. in: "New Frontiers in Information and Production Systems Modelling and Analysis Incentive Mechanisms, Competence Management, Knowledge-based Production" (Ed.: Różewski, P., Novikov, D., Bakhtadze, N., Zaikin, O.) Springer, 2016. P. 59-83.
:  We consider a problem of a rational organizational structure for change management support being an important aspect of the strategic management process in a firm. We combine recent theoretical findings with experience in strategic consulting to suggest mathematical models of an organizational structure for change management based on a formal representation of a strategy of the firm and of available labor resources. The model of managers interactions employs an idea of linear duplication of efforts. The problem of an optimal organizational structure is reduced to an extremely complex mixed optimization problem. Then we attack a problem of an optimal organizational form (functional vs divisional vs matrix) for a special case of identical and symmetric projects of strategic development. We find span of control to be constant across the levels of an optimal functional, divisional, and matrix hierarchy, and directly compare costs of optimal organizational forms. A matrix organizational structure appears to be optimal when the number of projects and managerial functions is large enough, while matrix and divisional organizations are robust with respect to the project count increase.

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