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Stains on the Bright Side of Process-Oriented Organizational Designs: an Empirical Investigation of Advantages and Disadvantages

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Schmalenbach Business Review Aims and scope

Abstract

Empirical and anecdotal evidence point to the advantages of a process orientation from an organizational perspective but do not explicitly consider the potential disadvantages or the employee’s perspective. However, to be able to profit from a process orientation, organizations undergoing a transformation of their organizational structure must ensure that employees adopt a process orientation in their daily work. The purpose of this study is to show the employees’ perspectives on potential (dis)advantages of a process orientation. We surveyed employees in the financial services sector (N = 1,101) with an exploratory design that uses open questions on the main advantages and disadvantages of process orientation. Based on the survey data, we observe advantages that extend beyond those reported by prior research. Additionally, we find that employees partly perceive a process orientation as disadvantageous; this perception, in turn, may lead to the resistance of employees in times of organizational transformations. The findings can serve as a guideline for managers when introducing process orientation in highlighting which disadvantages should be mitigated and which advantages should be emphasized.

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Notes

  1. Note that although most of the research regarding process management does not explicitly talk about the disadvantages of a process orientation, it indirectly acknowledges that a process-oriented organizational design might not be solely advantageous (e. g., by referring to the advantages in certain circumstances of role-oriented or product-based design). We thank an anonymous reviewer for emphasizing this restriction to the basic assumption of our work.

  2. Please note that the questionnaire additionally contained quantitative questions (e. g., related to design components associated with implementing a process-oriented design, operational performance, innovation ability) that we partly use for another study that answers a different research question.

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Authors and Affiliations

  1. Universität Rostock, Ulmenstraße 69, 18051, Rostock, Germany

    Michael Leyer

  2. Technische Universität München, Arcisstraße 21, 80333, München, Germany

    Jutta Stumpf-Wollersheim

  3. Frankfurt School of Finance & Management, Sonnemannstraße 9–11, 60314, Frankfurt a.M., Germany

    Daniel Kronsbein

Authors
  1. Michael Leyer
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  2. Jutta Stumpf-Wollersheim
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  3. Daniel Kronsbein
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Correspondence to Michael Leyer.

Additional information

M. Leyer and J. Stumpf-Wollersheim contributed equally to this work and should be considered co-first authors.

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Leyer, M., Stumpf-Wollersheim, J. & Kronsbein, D. Stains on the Bright Side of Process-Oriented Organizational Designs: an Empirical Investigation of Advantages and Disadvantages. Schmalenbach Bus Rev 18, 29–47 (2017). https://doi.org/10.1007/s41464-016-0020-9

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  • DOI: https://doi.org/10.1007/s41464-016-0020-9

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