Changes in Organization Design Produced by Covid-19 from a Path-Dependence Perspective : A Case Study of a Medical Manufacturing Company

Abstract: Covid-19 brought various challenges that the world that was not fully prepared to face since 2019. The pandemic came with both health and economic repercussions, and various organizations had to adapt their Organization Design to confront these new challenges posed by this Black Swan event. Since the pandemic is still recent, most of the research related to Organization Design and Covid-19 has focused on the changes during the pandemic. What has been missing in the research is a perspective on the evolution of Organization Design over time. Two research questions were addressed. The first question explored how individuals from different positions perceived changes in Organization Design during the pandemic using Jay Galbraith's Star Model. The findings revealed variations in perceptions across positions, particularly regarding hiring growth, structure, communication, rewards, and the hiring process. The second research question uses a combination of Path Dependence Theory and Jay Galbraith's Star Model to compare the short-term and long-term effects of contingencies on Organization Design within a Medical Manufacturing Company. Some changes, like temporary Covid-19 protocols and rewards, were phased out, while others, including remote work, digital transformation, hybrid work models, and certain structural changes, became permanent. The thesis contributes to the understanding of how Black Swan events impact Organization Design in the Medical Manufacturing Industry, providing practical recommendations for decision-making during crises and emphasizing the significance of organizational resilience and change management. The study's theoretical contributions include exploring path dependence in crisis-induced transformations, highlighting the dynamic nature of organizational responses, and suggesting future research avenues. Overall, this research enhances knowledge of Organization Design dynamics and offers guidance for organizations in crisis response and resilience-building.