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Different Successful Patterns for Implementing Holding Model in Public Sector

Different Successful Patterns for Implementing Holding Model in Public Sector Abstract Background: Transitions in the modern business environment cause significant organizational changes not only in private companies, but also in the public sector. Introduction of an adequate organizational model for the public sector could improve the quality level of public services. Objectives: This article aims to present general benefits of the application of the holding organizational paradigm in the public sector through a parallel analysis of several cases that were observed individually in our previous research. The goal is to suggest possible restructuring directions to policy makers in cities where the public sector has not been adjusted to the changes in the modern business environment. Methods: The case study research based on the documentation analysis, interviews and direct observation using the standard management consulting practice provided an additional and deeper insight into the functioning of public enterprises in one European capital and one small municipality. Results: The examples presented in this paper showed that the application of the holding institutional solution in the public sector leads to an improved command, an increased level of control, reduced management costs, better allocation of city resources and decreased overheads in the public sector. Conclusions: Switching from a functional towards a network model of the organizational structure improved the performance of public enterprises and increased the quality of public services http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Systems Research Journal de Gruyter

Different Successful Patterns for Implementing Holding Model in Public Sector

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Publisher
de Gruyter
Copyright
Copyright © 2013 by the
ISSN
1847-9375
eISSN
1847-9375
DOI
10.2478/bsrj-2013-0012
Publisher site
See Article on Publisher Site

Abstract

Abstract Background: Transitions in the modern business environment cause significant organizational changes not only in private companies, but also in the public sector. Introduction of an adequate organizational model for the public sector could improve the quality level of public services. Objectives: This article aims to present general benefits of the application of the holding organizational paradigm in the public sector through a parallel analysis of several cases that were observed individually in our previous research. The goal is to suggest possible restructuring directions to policy makers in cities where the public sector has not been adjusted to the changes in the modern business environment. Methods: The case study research based on the documentation analysis, interviews and direct observation using the standard management consulting practice provided an additional and deeper insight into the functioning of public enterprises in one European capital and one small municipality. Results: The examples presented in this paper showed that the application of the holding institutional solution in the public sector leads to an improved command, an increased level of control, reduced management costs, better allocation of city resources and decreased overheads in the public sector. Conclusions: Switching from a functional towards a network model of the organizational structure improved the performance of public enterprises and increased the quality of public services

Journal

Business Systems Research Journal – de Gruyter

Published: Dec 1, 2013

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