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Different Successful Patterns for Implementing Holding Model in Public Sector

Author

Listed:
  • Todorović Ivan

    ()

  • Komazec Stefan

    ()

  • Čudanov Mladen

    () (University of Belgrade, Faculty of Organizational Sciences, Business System Organization, Belgrade, Serbia)

Abstract

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

Suggested Citation

  • Todorović Ivan & Komazec Stefan & Čudanov Mladen, 2013. "Different Successful Patterns for Implementing Holding Model in Public Sector," Business Systems Research, Sciendo, vol. 4(2), pages 58-67, December.
  • Handle: RePEc:bit:bsrysr:v:4:y:2013:i:2:p:58-67
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    References listed on IDEAS

    as
    1. Fabac Robert & Schatten Markus & Đuričin Tomislav, 2011. "Social Network Mixing Patterns In Mergers & Acquisitions - A Simulation Experiment," Business Systems Research, Sciendo, vol. 2(1), pages 36-44, January.
    2. Pier Angelo Toninelli & Michelangelo Vasta, 2010. "State-owned Enterprises (1936–83)," Chapters,in: Forms of Enterprise in 20th Century Italy, chapter 3 Edward Elgar Publishing.
    3. Mladen Čudanov & Ondrej Jaško & Gheorghe Săvoiu, 2012. "Public and Public Utility Enterprises Restructuring: Statistical and Quantitative Aid for Ensuring Human Resource Sustainability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 307-322, June.
    4. G. Bognetti & L. Robotti, 2007. "The Provision Of Local Public Services Through Mixed Enterprises: The Italian Case," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(3), pages 415-437, September.
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