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Research seminar with PhD Fellow Eucman Lee
September 27, 2013 @ 12:00 pm - 1:15 pm
Eucman Lee is a PhD candidate in Strategy and Entrepreneurship at London Business School. His dissertation is titled: “Three Essays on Organization Design Competence”.
CEO Functional Background, Organizational Structure and Performance: Evidence from the U.K. Healthcare Sector
I develop and test a theory of how and to what extent the bounded rational CEOs influence the organizational performance through their impact on organizational structure. I examine the relationship between the CEOs’ functional background and the changes of reporting structure across multiple levels and segments of the administrative hierarchy. I found that CEOs increase the number of direct reports in their area of expertise and delegate to those not in their area of expertise. Subsequently, the CEO’s first layer design choices generate cascades down the hierarchy. I also find that these choices are associated with impacts on different domain specific measures of organizational performance. My theory and results contributes to the strategy literature by fully articulating the mechanisms linking CEO attributes, organizational structure and performance. More importantly, I provide a novel perspective on organization design by showing how local micro-structural design choices at the top of the organizational hierarchy are aggregated into the macro-structure of organization.