Different Successful Patterns for Implementing Holding Model in Public SectorReport as inadecuate

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Business Systems Research : International journal of the Society for Advancing Innovation and Research in Economy, Vol.4 No.2 December 2013. -

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.

holding; network organizational model; public sector; state company; municipality; local government; restructuring; change

Author: Ivan Todorović - ; University of Belgrade, Faculty of Organizational Sciences, Business System Organization, Belgrade, Serbia St

Source: http://hrcak.srce.hr/


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