The article “Managerial competencies and organizational structures” in the Industrial Management & Data Systems journal focuses on the roles of whether there is a relationship among leadership, action, social, and personal competencies of managers in modern organizational structure types and whether a relationship exists between a company’s organizational structure and performance. It appears that the authors point out the fundamental elements that should lead to business success require continuous monitoring of customers’ expectations and desires, changing approaches to the organization of work and staff that subsequently lead to constant organizational changes.
Also, the article focuses on the conditions in turbulent social environments require managers to no longer maintain the illusion of the possibility of predicting the future. Managers can no longer measure, predict, and control organizations in the traditional sense. Furthermore, organizations that want to be effective are forced to find their competitive edge outside their own activities, more specifically in the value chains of their suppliers, distributors, and customers. In this article a research was conducted among top managers of mid- and large-sized companies. The relationship among managerial competencies, the choice of organizational structure type and the company effectiveness were measured with a value-added approach. The method of structural models was used for establishing the affect among individual variables. The results appears that the leadership of an organizational structure on a company’s performance and growth on the market facilitates the achievement of higher value added as well as has a direct impact of managerial competencies on a company’s performance. As we know that managerial competencies have a significant impact on organizational structure and organizational structure has a significant impact on an organization performance.
In additional, the article provides useful background information of managerial competencies; the constant that defines a company’s success still remains the knowledge and skills of employees and managerial competencies are becoming a crucial factor to the existence of a company.
Verle, K., Markic, M., Kodric, B., & Gorenc Zoran, A. (2014). Managerial competencies and organizational structures. Industrial Management & Data Systems, 114(6), 922-935. Retrieved from: https://libauth.purdueglobal.edu/login?url=https://search-proquest-com.libauth.purdueglobal.edu/docview/1650583955?accountid=34544