engleski

Organizational Transformation: A Case of HEP Group

Organization design examines the factors that must be considered and the processes that are required in the design, development, and implementation of an effective organization. In most cases, structure is usually overemphasized because it affects status and power. However, in a fast-changing business environment, structure is becoming less important, while processes, rewards, and people are becoming more important (Galbraith, 2002 ; p. 14). In other words, it could be said that organization design goes beyond the structure of the organization - the lines and boxes and arrangement of people and functions. Theoretically, organization design (structure, processes and culture) should be based on the strategy and it plays a central role in strategy implementation. However, if top management decides for a breakthrough change, strategy can be implemented only through the process of organizational transformation. Transformations are dramatic events, introducing discontinuities into an organization’ s life. The effects of transformation may not be uniform across different categories of organizations and different kinds of outcomes (Aldrich & Ruef, 2006, p. 155-156). Each specific situation has its own contingencies, although some experiences can be generalized. With that thought in mind, in the paper it will be examined the case of the organizational transformation of the HEP Group, one of the biggest Croatian companies. HEP Group, primarily due to environmental changes, was forced to go through major organizational transformation process. The change implicated almost all aspects of the business: the management system, the social/cultural system, the technical system and critical competitive factors. The aspects which should be especially emphasized are the social/cultural system and critical competitive factors.

Organization; Organizational transformation; Organization design; HEP Group; Croatia

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