LEADERSHIP AS A FACTOR IN DESIGNING A FLEXIBLE COMPANY'S ORGANIZATIONAL MODEL IN DYNAMIC BUSINESS CONDITIONS

The objective of this research is to qualitatively explore the role of leadership in designing a flexible model of organizational structure in conditions of frequent market regime-switching, tail behavior, and jumps, based on the Galbraith’s Star model. Designing a flexible organization can be achieved by changes not only in the organizational structure, as previously believed, but also by changes in each of the design elements such as corporate strategy, structure, organizational culture, leadership, and human resource management. The paper focuses on understanding how to achieve organizational flexibility by changing the leadership factor, while assuming ceteris paribus. Moreover, this work attempts to gauge the contribution of leadership in the process of transforming a rigid, vertical company organization into a shallow, horizontal company organization. By adjusting the leadership input, the organization may be able to ensure stability and dynamism while being subjected to turbulent business environment.