Evolution of Organizational Structure: A Case Study of a Multinational Corporation (MNC) Subsidiary in Poland
Purpose: The purpose of the article is to present the changes that have taken place in the organizational structure of a subsidiary of a multinational corporation and to show its level of economic activity as a result of the changes made to its structure. The goal was realized by analyzing the literature on the subject and conducting an empirical study in a subsidiary of a German automotive corporation. Design/Methodology/Approach: The study presents the following research problem: How the changes being made in the organizational structure of the subsidiary of a German multinational company affected its economic activity in the host country. In order to solve the research problem, an analysis of the literature on the subject was carried out, the levels of activity of the subsidiary of a multinational corporation in the host country and the scope of functions carried out within the framework of each activity were proposed. Then, in order to verify the theoretical assumptions, empirical research was carried out in the form of cyclic interviews with the director of the subsidiary and analysis of organizational documents (organizational structure charts, organizational regulations, etc.). The research at the subsidiary was conducted from 2010 to 2023. Findings: The research shows that between 2010 and 2023, changes were made in the subsidiary's organizational structure by increasing and decreasing the scope of functions performed, moving functions between its cells, departments, organizational divisions. The company's economic activity in the host country was also changing as a result of interference from headquarters. Two opposing processes centralization and decentralization of functions were identified. Practical Implications: The results of the research presented in the article can be used by other headquarters of multinational corporations to modify the organizational structures of subsidiaries and shape their economic activity in host countries. Originality/Value: Research conducted in a subsidiary of a multinational corporation shows that the headquarters shapes the organizational structure and business activities of the subsidiary. On the one hand, it can increase the scope of its functions to be performed, its decision-making independence, and on the other hand, it can take away its functions and decisions. Decisions made on the subsidiary's operation will not always be accepted by its managers, especially when the subsidiary is in a phase of dynamic development and is hampered by the headquarters.