JUSTIFICATION OF ORGANIZATIONAL CHANGES INCLUDING SPECIFICS OF HIERARCHICAL RELATIONS IN DEVELOPING ORGANIZATIONS

Abstract

Introduction and study objective: the requirement to create an effective system of enterprise’s innovation development brings forward issues of theory and methodology, including specifics of necessary organizational changes and cooperation within the company including management –employees’ interaction. Thus, scientific ground for solution to these problems will facilitate the creation of organizational structures for efficiently functioning enterprises.

Hypothesis of scientific research. It is often assumed that the choice of effective and required methods of the enterprise’s adjustment to the market environment would allow to systematize the organizational changes enabling performance increase of its economic activity.

The purpose of this study is theoretical and methodological justification of concept approaches and methods in organization change management of enterprise structures and functions during its adjustment to the conditions of economic environment.

Research methodology: application of the system analysis justifies 5 sets of hypothetical relations linking perceived power with perceived behavior of reward and penalty.

Furthermore, two-dimensional correlation, stepwise multiple regression and hierarchical multiple regression analysis help to construct a model of relevant organizational changes.

Results achieved: diagnostic methods were developed that determine external and internal conditions of the enterprise in order to choose the right change strategy; the methodology of evolution analysis of change efficiency was proposed. Additionally, high-quality econometric models were created for assessment of the impact of changes based on the enterprise’s performance.

Conclusions: the proposed approach to justification of organizational changes enables the implication of methods designed to analyze the need for restructuring of organization culture, management style, employees’ relations and takes into account specifics of hierarchical structure in a developing organization. Furthermore, new methods were developed to assess the effectiveness of management system at an industrial enterprise, including introduction of changes and their dynamics’ assessment.