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Challenges of control in functional organization structures: Example of outsourcing sector

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Maciejczyk A.

Journal of Economics and Management

2016

vol. 25

49-62

Effective control of an organization is strictly connected with its organization structure. When a company decides to outsource a part of its operations, a new structure is applied. Also, the system of control should be reviewed and adjusted to the new model of business in order to be effective. Usually, the outsourcing companies apply functional organization structure which is the most common way of grouping business activities. The goal of the paper was to point challenges and aspects which should be taken into consideration in order to adapt control systems to new organization structures in case of Business Process Outsourcing and Shared Service Centers. The research was based on literature studies as well as empirical analysis of selected companies from business service centers sector. The key findings of the study suggest that the mechanisms of control differ in Business Process Outsourcing and Shared Service organizations although both base on building trust and relationship. The main challenges of adapting the control system to new conditions comprise people and process related factors such as: knowledge management, control split and owners, new processes flows, virtual teams. Building control system is a process which foundation is a new organization structure.

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1 Journal of Economics and Management

1 2016

1 Maciejczyk A.

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Challenges of control in functional organization structures: Example of outsourcing sector