What's this? A diagram of squares with the names of departments of the organization, built in a certain order?
It is customary for the layman to believe that the organizational structure is a kind of theoretical concept that has a very mediocre relationship to a really operating organization. Moreover, within some existing enterprises, too little importance is attached to the organizational structure in the implementation of their economic activities. As a result, there are blurred functions and responsibilities among the heads of departments, a chaotic system of subordination, a lack of coherence in work and accomplishment of tasks to achieve the common goal of any business - making a profit.
Analysis of the financial condition of the organization begins with the study of its organizational structure. Who needs it? Representatives of the external habitat of the company - creditors, investors, suppliers, buyers and customers, they all need to clearly understand the logic of the partner company. Representatives of the internal environment - directly to the employees of the enterprise, who also need to know how they interact with colleagues, to whom they report, and to whom they can delegate part of the responsibilities. The set of groups of all employees constitutes the organizational structure of the organization's personnel.
What is an organizational structure
So what is this concept? is the totality of all its divisions, between which functions and tasks are distributed, as well as the relationship between them.
Organizational structure of enterprise management
Organizational - this is management, which determines the powers and responsibilities, accountability and relationship between the heads of departments, as well as establishing a list of staff duties.
Among the main types of organizational structures are linear, functional, linear-functional, divisional, matrix and combined.
Linear structure
The linear type of organizational structure is characterized by the fact that each division of the organization is managed by one manager who reports to a higher manager, etc. This type has become obsolete because it is not flexible, does not contribute to adaptability to economic changes and the growth of the company in modern conditions. The leader must be able to navigate in different areas, be a truly broad-based specialist in order to give orders to each service of the organization. Although the main advantages of the linear type can be distinguished by its simplicity, the clarity of the relationship between the divisions of the enterprise and their functions.
The linear structure of the organization on the example of the army
The most striking example for characterizing the linear form of the organizational structure is the army, where, as you know, a clear scheme of organizing the subordination of the junior in rank to the senior is in charge.
The diagram of the organizational structure of the army officers is presented above.
Functional structure
The functional organizational structure implies the presence in the organization of separate services (for example, the sales department, personnel department, accounting, production and technical department, etc.), the personnel of each of which can interact with each other, and not just with the main manager. This removes most of the burden from the chief manager, removes the task of finding broad specialists, which are the advantages of this structure. The presence in the departments of specialists in their field helps to improve the quality of products. Nevertheless, the use of a functional organizational structure complicates intercompany communications and contributes to the development of a tendency to shift the responsibility of employees of some services to employees of others.
The functional form of the organizational structure of management on the example of an organization for the production of dairy products
Consider this type of organizational structure on the example of a food industry enterprise.
The diagram of the functional type of the organizational structure shows the relationship between the divisions of the enterprise. So, for example, in the process of fulfilling his duties, he interacts with the divisions of the financial service: with the accounting department for the consumption of fuel and lubricants and write-off of spare parts, with the sales department for issuing shipping documentation and coordinating the route, with the warehouse of raw materials and the main production for transporting materials between them for shop needs, etc. That is, the units are functionally interconnected, but not subordinate to each other.
Linear-functional structure
Linear and functional forms of organizational management structures are rarely used in their pure form. A linear-functional management structure is capable of solving the shortcomings of these types of organizational structures. From linear, it generalizes the presence from the functional, it borrowed the presence of functional services that help the first, but are not administratively accountable to them.
Among the advantages of this structure, one should note a reasonable balance between unity of command and narrow-profile specialization of the heads of functional services; the possibility of delegating authority to lower levels of linear links of functional services. But the disadvantages include the low degree of interaction between the personnel of functional units, since the relationship is often debugged only among their leaders. The principle of unity of command, when strengthened, can adversely affect the quality of manufactured and sold products.
Linear-functional structure on the example of a store of household appliances and digital electronics
To illustrate clearly what this type is, let's imagine in the form of a diagram the organizational structure of a home appliances and digital electronics store.
In the diagram, solid lines show linear connections, and dotted lines show functional ones. So, for example, the cash desk is directly (linearly) accountable to the accounting department, but in the process of performing its functions, it interacts with the sales department for collecting funds, with the sales department of the store, with the personnel department for issuing funds, and with the purchasing department for organizing payments to suppliers and contractors in cash. . The sales departments of the store are directly subordinate to the sales department, but in the course of their activities they are functionally interconnected with the purchasing department, and with the accounting department, and with the personnel department.
Divisional structure
The divisional structure differs in that divisions are grouped according to some criterion: by types of products, by regions, by groups of consumers. The positive aspects of using this model are a high level of responsiveness and adaptability to changes in the external environment of the existence of the company, the release of a product of higher quality and competitiveness due to the orientation of all participants in the production process to one division. Among the disadvantages of the structure, it is necessary to note such negative phenomena as the duplication of functions of divisions and management, the growth of conflicts due to the duality of subordination, the complexity of managing divisions as a whole.
Divisional structure on the example of a food manufacturing plant
As an example, the organizational structure of a food production plant is presented. The company is engaged in the manufacture of several types of products. One of the directions is the production of non-alcoholic carbonated drinks and kvass, and the other is the production of gingerbread and cookies.
As can be seen from the diagram of the divisional organizational structure of the enterprise, it took the types of products produced as the basis for the divisional division. Each includes a team of workers, a service of laboratory assistants, a group of sales managers and the composition of the accounting department for calculating wages, calculating the cost of a product, etc.
Matrix type of organizational structure
A matrix structure is a type of structure with dual accountability. This type of organizational structure realizes itself in design work. For example, an organization receives an order to perform some type of work. To do this, a project manager is appointed and a number of performers from different functional services are allocated to him. However, they do not come out of the subordination of their immediate supervisors, and upon completion of the work they return back to their unit. Among the advantages of this type of organizational structure: high speed of response and susceptibility of the enterprise to changes in the external environment, a high level of adaptability, optimal distribution of powers, responsibilities, accountability between functional and linear divisions. The disadvantages include confusion in the prioritization of tasks between work on a temporary project and in a permanent unit, which also implies the threat of conflicts between project managers and the management of functional units. The very principle of dual accountability greatly complicates the entire management system.
To more clearly imagine this form of organizational structure, let us turn to the scheme of the enterprise that took it as a basis.
The company has 5 types of activities: emergency dispatch service, which provides services to several companies in the elimination of emergencies; provision of services for the current sanitary and technical repair of residential buildings; intercom installation services; wholesale and retail trade in electrical equipment. But the company also takes part in electronic auctions and undertakes the implementation of temporary projects. For each individual project, its manager is appointed, and a number of employees from each functional unit are released into his submission: an accountant, personnel officer, supplier and work team. After the completion of work on the project, the production staff is disbanded at the places where direct duties are performed.
Combined structure
The main characteristic of the combined organizational structure of the organization is the combination of several of the above types in it. It contains features of line management, functional relationships, division of services according to selected criteria, as well as the principle of duality of subordination. The combined organizational structure makes it possible to increase the flexibility of the enterprise and its susceptibility to changes in the internal and external environment. The advantages and disadvantages of the combined structure are the same as the structures underlying it.
Combined management structure on the example of an enterprise for the extraction and processing of apatite-nepheline ore
Consider this form of organizational structure on the example of an organization that has branches in different regions of the country, as well as engaged in several types of activities. Below is a diagram of the combined organizational structure.
Management is carried out by the general meeting of shareholders, which stands above the board of directors. The Board of Directors appoints the General Director and the composition of the collegial body of the Management Board, whose duties include managing the strategic development of the enterprise. The Management Board and the General Director are linearly subordinate to the Departments of Finance, Human Resources, Main Production, Logistics and Material Flows. The functional subdivisions of the Complex are enterprises engaged in the extraction, enrichment, processing, transportation of ore, as well as a research group. The organizational structure of the organization's divisions operating in different regions is also made up of linear and functional services.
Regardless of the form, the organizational structure must perform the functions of dividing tasks between the departments of the organization, determining the competence of each of them in achieving the final result of the activity, and also control the inviolability of the relationship between departments.
The implementation of plans and programs is achieved by building an organizational structure that allows you to effectively direct the joint activities of the staff through the appropriate distribution of duties, rights and responsibilities. The management of the enterprise should choose an organizational structure that is consistent with the strategic plans and ensures effective interaction with the environment and the achievement of the intended goals.
1. consists in the fact that the grouping of work tasks and profile specialists into departments is carried out in accordance with the types of activity and qualifications - engineering department, accounting, marketing, production (Fig. 1).
Rice. one. Organizational example of functional structure
2. With the divisional approach, the basis for creating self-sufficient divisions is the similarity of manufactured products and implemented programs or the influence of the geographical factor (Fig. 2).
Rice. 2. Organizational structures of an enterprise: an example of a divisional structure
3. The matrix approach consists in the coexistence of divisional and functional command chains, as a result of the intersection of which a double chain of subordination arises: employees are accountable to two direct supervisors - the project or product manager, in the development or implementation of which they are involved, and the head of the functional department (Fig. 3).
Rice. 3. Organizational structures of an enterprise: an example of a matrix structure
New in company structures
Among the "new", more flexible and adaptive approaches are the following approaches to the formation of the structure:
- The team approach is used to organize the implementation of specific tasks. A variety of teams can be created to coordinate the activities of the main departments.
- In the network approach, the organization is “shrinked”, with the leading role and key position in it being occupied by the broker, whose role is to maintain interconnections with other departments using telecommunication technologies. Departments can be geographically scattered around the world, their activities are independent, the cost of the broker's services is paid based on the terms of the contract with profit. Such a scheme of the organizational structure of the enterprise is reflected in fig. 4.
Fig.4. Network structure of the organization
Factors affecting the choice of structure
The choice of organizational structure is influenced by many situational factors both within the organization and outside it: the scale of the business, its specifics, the degree of mobility of the external environment, the characteristics of the industry in which the company operates, etc.
Advantages and disadvantages of adaptive and bureaucratic structures
Among the bureaucratic structures, which are also called hierarchical, are linear, functional, divisional, etc. Among the adaptive (organic) structures, matrix, project, network, etc. are distinguished. The characteristic features of these organizational structures are given in table 1.
Table 1. Advantages and disadvantages of bureaucratic and adaptive organizational structures
| bureaucratic structure | Adaptive Structure | |
| pros | Clear communication between subordinates and superiors Full control over subordinates Prompt response to crisis situations | Effective motivation High level of employee responsibility Staff initiative Rapid exchange of information between employees of different levels |
| Minuses | Slow movement of information Low level of employee responsibility Staff lack of initiative power struggle | Probability of uncontrollability Difficulties in finding qualified employees |
In general, the organizational structures of an enterprise (for example, bureaucratic structures) are better suited to companies operating in a stable external environment, and organic ones are better suited to firms that are forced to work in conditions that change very quickly.
organizational structures
The organizational structure of the LLC enterprise, depending on the features of its construction, has clearly defined advantages and disadvantages, which are reflected in table 2.
table 2. Comparative characteristics of organizational structures
| Name | Description | Advantages | Restrictions |
| Linear | The scheme of the organizational structure of the enterprise is created when tasks and powers are transferred from the manager to the subordinate, and so on along the chain of command. In this case, hierarchical levels of control are formed. | Simplicity and ease of control | A manager of any rank must be competent and efficient in any managerial function. Effective management of a highly diversified and geographically branched business is impossible |
| headquarters | A headquarters (administrative apparatus) is created in the organization. Experts included in its composition (for example, lawyers, specialists in training and development of personnel, etc.) provide advice to top managers and line managers | Reducing the level of requirements for and facilitating their work | Such a model of the organizational structure of the enterprise is characterized by the absence or limited power of the headquarters |
| functional | Separate departments (production, sales, marketing, finance, etc.) are clearly assigned certain management functions, tasks and responsibilities | Optimization of activities in each functional area. It is most effective when the product range is relatively constant and the organization solves predominantly the same type of management tasks. | None of the departments as a whole is interested in achieving corporate goals, provokes conflicts between departments. Difficulties in the preparation of the senior personnel reserve due to the narrow specialization of middle managers. Slow response to environmental changes |
| Divisional | Division of the organization into divisions by types of goods or services, customer groups or regions | An efficient structure for large, geographically dispersed companies with a wide range of products or services. Allows you to focus on specific goods (services), consumer groups or regions. Responds quickly to changes in technology, customer demand and competitive conditions | Increase in costs associated with duplication of work (including those performed by functional units) in various divisions |
| Design | A temporary structure created to solve a specific problem, limited by time. Headed by the project manager, who reports to a team of specialists and who has the necessary resources at his disposal | All the efforts of employees are aimed at solving one specific problem. | It is impossible to ensure full or guaranteed employment of project participants after its completion. Problems with team workload and resource allocation |
| matrix | The matrix Organization is divided into structural (usually functional) divisions, and project managers are appointed, who are subordinate to top management. During the implementation of projects, managers temporarily manage the activities of employees of functional units. In everything that goes beyond the scope of project activities, these employees are subordinate to the heads of their departments. | Flexibility and speed of response to changes in the external environment. Possibility of reallocation of resources | Violation of the principle of unity of command due to the double subordination of employees. The emergence of conflicts over the distribution of resources |
Thus, when deciding on the choice of an organizational structure, it is important to know and take into account its advantages and disadvantages, as well as the influence of such factors as the scale of doing business, its specifics, the degree of uncertainty of the external environment, the characteristics of the industry in which the company operates, etc. Universal type structure for all occasions simply does not exist.
The concept of traditional, or so-called hierarchical, organizational structures was formulated by Max Weber. According to this concept, structures are linear and functional.
IN linear structure the division of the control system into its component parts is carried out on the basis of production, taking into account the degree of concentration of production, technological features, the breadth of the product range and other features.
The linear structure clearly functions in solving problems with the performance of repetitive operations, but it is difficult to adapt to new goals and objectives. The linear management structure is widely used by small and medium-sized firms that carry out simple production in the absence of broad cooperative ties between enterprises (Table 5.6).
Table 5.6
Linear organizational structure
Application area functional structure- These are single-product enterprises; enterprises implementing complex and long-term innovative projects; medium-sized highly specialized enterprises; research and design organizations; large specialized enterprises (Table 5.7).
Specific tasks of management when using the functional structure:
kvvad careful selection of specialists-heads of functional divisions;
kvvad unit load balancing;
kvvad ensuring the coordination of the activities of functional units;
kvvad development of special motivational mechanisms;
Table 5.7
Functional organizational structure
kvvad providing autonomous development of functional units;
kvvad priority of specialists over line managers.
The modern organizational structure is linear functional structure, which ensures the division of managerial labor. At the same time, the linear levels of management are called upon to command, and the functional ones are called upon to advise, assist in the development of specific issues and the preparation of appropriate decisions, programs, and plans. The heads of functional services exercise influence on production units formally, without, as a rule, having the right to independently give them orders (Table 5.8).
The linear-functional organizational structure provided a qualitatively new division of labor in management, but it becomes ineffective when solving problematic tasks.
The improvement of the linear-functional organizational structure led to the emergence divisional organizational structure management, when separate units with a certain independence enter into contractual relations with each other on the basis of self-financing. Strategic decision making is left to top management.
Table 5.8
Linear-functional organizational structure
The need to use a divisional structure arose in connection with a sharp increase in the size of enterprises, the diversification of their activities, and the complication of technological processes. The key figures in the management of organizations with this structure are not the heads of functional departments, but managers who head production departments.
The structuring of the organization by departments is carried out, as a rule, according to one of the criteria: by manufactured products, customer orientation, served regions. The heads of secondary functional services report to the manager of the production unit. Assistants to the head of the production department control the activities of functional services, coordinating their activities horizontally (Table 5.9).
Table 5.9
Divisional organizational structure
The scope is diversified enterprises; enterprises located in different regions; enterprises implementing complex innovative projects.
Specific management tasks when using a divisional organizational structure:
kvvad substantiation of criteria for selecting projects and product groups;
kvvad careful selection of department heads;
kvvad ensuring a unified innovation policy in all product groups;
kvvad prevention of intracompany competition between product groups;
kvvad prevention of autonomous development of product groups;
kvvad development of special motivational mechanisms regulating intercompany cooperation;
kvvad priority of line managers over specialists.
When looking for an effective management structure, the focus has always been on the right balance of centralization and decentralization in management. In practice, there are no fully centralized or decentralized structures. In organizations with highly decentralized structures, the most important decisions are often made only by employees in fairly high positions (not lower than the head of the department). This form of decentralization in large firms is called federal decentralization.
To determine the degree of centralization of an organization in comparison with others, the following characteristics are used:
kvvad the number of decisions made at lower levels of management: the greater the number of decisions made by lower managers, the lower the degree of centralization;
kvvad the importance of decisions taken at lower levels;
kvvad consequences of decisions made at lower levels. If middle managers can make decisions affecting more than one function, then the organization is poorly centralized;
kvvad control over the work of subordinates. In a loosely centralized organization, top management rarely reviews the day-to-day decisions of subordinate leaders. Evaluation of actions is done on the basis of the total results achieved.
The solution of the issue of centralization and decentralization in management led to the emergence of organic type structures. Such structures are characterized by the individual responsibility of each employee for the overall result. The main property of such structures, known in management practice as flexible and adaptive, is their inherent ability to relatively easily change their shape, adapt to new conditions, organically fit into the management system (Table 5.10).
Structures of the organic type are focused on the accelerated implementation of complex programs and projects within the framework of large enterprises and associations, entire industries and regions.
As a rule, organic governance structures are formed on a temporary basis, i.e. for the period of implementation of the project, program, problem solving or achievement of goals.
Table 5.10
Comparative characteristics of hierarchical and organic types of management
Varieties of organic type structures are program-target organizational structures. Such structures are formed when an organization develops projects, which are understood as any processes of purposeful changes in the system, for example, the modernization of production, the development of new products or technologies, the construction of facilities, etc.
In the context of managing multifunctional programs that require an increase in the number of project and functional managers, it becomes necessary to create a special coordinating staff at the middle level. Its tasks: providing project managers with the necessary information, analysis of organizational and technical solutions, fixing the deadlines for the implementation of programs, etc. Such a structure is called matrix-staff. It reflects all types of leadership: linear, functional, divisional, ensuring the coordination of activities between them.
One of the latest developments developing the idea flexible organizational structures is their construction in the form of an inverted pyramid, in which professional specialists are brought to the top level of the hierarchy, while the head of the organization is at the bottom of the diagram (Fig. 5.3).
Rice. 5.3. Flexible organizational structure
Such organizational structures can be used where professionals have the experience and knowledge that enable them to act independently and competently to meet the needs of clients, for example, in health and education organizations, where a large number of specialists work independently with the support of auxiliary or service personnel.
In market conditions, new forms of integration of enterprises of a diversified type appear (Table 5.11). The principle of creating such structures: the concentration of resources, capacities, industries of various profiles for the production of mass demand products, the ability to maneuver means, reduce production costs, create prerequisites for the introduction of scientific and technical innovations.
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Under organizational structure enterprise management refers to the composition (list) of departments, services, divisions in the enterprise management apparatus, the nature of subordination, interaction, coordination and information communications, the procedure for distributing management functions at various levels and divisions.
The basis for building the organizational structure of enterprise management is its production structure. In the organizational structure of enterprise management, the following subsystems can be conditionally distinguished:
- organization of production processes;
- technological preparation of new production;
- technical quality control of products and works;
- maintenance of the main production;
- management of production and sales of products;
- personnel Management;
- economic and financial services, etc.
Functional connections and possible ways of their distribution between departments and employees are diverse, which determines the variety of possible types of organizational structures for production management.
In modern conditions main types of organizational structures controls are:
- linear,
- line staff;
- functional;
- linear-functional;
- divisional;
- matrix (design).
Linear organizational structure management is characterized by the fact that at the head of each unit is a leader who performs all management functions and manages subordinate employees. That is, the linear organizational structure of the enterprise is based on the principle of unity of command, according to which each employee has only one immediate supervisor. The decision is passed along the chain from top to bottom, which forms the hierarchy of a particular enterprise. The top manager of the organization is connected with each of the subordinate employees by a single chain of subordination, passing through the corresponding intermediate levels of management (Figure 5.1).
Figure 5.1 - Linear control structure
The linear organizational structure of management is characterized by a vertical: the top manager - the line manager of the unit - performers, that is, there are only vertical connections. This structure is built without highlighting functions.
The main advantages of the linear organizational structure of management:
- management efficiency;
- a clear system of mutual relations of functions and divisions;
- a clear system of unity of command - one leader concentrates in his hands the leadership of all processes that have a common goal.
The main disadvantages of the linear organizational structure of management:
- lack of links dealing with strategic planning;
- high centralization of management;
- a large number of leaders;
- dependence of the results of the enterprise on the qualifications, personal and business qualities of top managers.
The linear organizational structure of management is used and effective in small enterprises with simple technology and minimal specialization.
Linear-staff organizational structure of management similar to linear, but control is concentrated at the headquarters (Figure 5.2). Headquarters- this is a group of employees who collect information, analyze it, perform consulting work and, on behalf of the head, develop drafts of the necessary administrative documents.
Figure 5.2 - Line-staff management structure
The main advantages of the linear-staff organizational structure of management:
- the possibility of a deeper than in the linear, the development of strategic issues;
- some unloading of top managers;
- the possibility of attracting external consultants and experts, etc.
The main disadvantage of the linear-staff organizational structure of management is the lack of responsibility of staff specialists for the final result.
The growth in the scale and complexity of production, accompanied by a deepening division of labor, specialization of management, leads to the use of a functional organizational structure of management.
Functional organizational structure of management involves the formation of separate divisions in the management apparatus according to the areas of activity. The heads of these divisions are appointed by specialists who are the most qualified in the relevant field (Figure 5.3).
Figure 5.3 - Functional management structure
This structure stimulates business and professional specialization, reduces duplication of efforts in functional areas, and improves coordination of activities.
It is characterized by a management vertical: a manager - functional managers (production, marketing, finance) - performers, i.e. there are vertical and interlevel connections.
The main advantages of the functional organizational structure of management:
- direct impact of specialists on production;
- high level of management specialization;
- improving the quality of decisions made;
- the ability to manage multi-purpose and multi-profile activities.
The main disadvantages of the functional organizational structure of management include:
- complexity and inefficiency, as there are many divisions, and, consequently, control channels;
- lack of flexibility;
- poor coordination of activities of functional units;
- low speed of making managerial decisions;
- lack of responsibility of functional managers for the final result of the enterprise.
It is advisable to use the functional organizational structure of management in those enterprises that produce a relatively limited range of products, operate in stable external conditions and require the solution of standard management tasks to ensure their functioning.
In practice, it is usually used linear-functional organizational structure of management, providing for the creation of a linear management structure of functional units at the main links (Figure 5.4).
Figure 5.4 - Linear-functional control structure
The linear-functional organizational structure of management combines the advantages of both linear and functional management structures.
The disadvantages of the linear-functional organizational structure of management include:
- lack of close relationships and interaction between production units at the horizontal level;
- the duration of the passage and implementation of management commands and procedures;
- the possibility of conflicts between functional units, etc.
Divisional organizational structure of management involves the allocation of relatively separate and endowed with greater rights in the implementation of their activities structural units, called divisions.
The division is created according to one of the criteria:
- on manufactured products (services and works);
- targeting specific customer groups;
- geographic regions served;
- to several markets or large groups of consumers;
- types of products and regions where they are sold;
- regions and types of products.
Different types of divisional structure have the same goal - to provide a prompt response to changing environmental factors. For example, the product management structure allows you to develop and introduce new types of products into production in a competitive environment.
The divisional organizational structure of management creates conditions within the enterprise for the partial decentralization of the decision-making process and the transfer of responsibility for making a profit to the divisions (Figure 5.5).
The main advantages of the divisional organizational structure of management:
Provides management of diversified enterprises with a large number of employees and geographically remote divisions;
Figure 5.5 - Divisional (product) organizational structure of management
- more flexible and quick response to changes in the external environment;
- divisions become "profit centers";
- closer relationship between production and consumers.
The main disadvantages of the divisional organizational
management structures:
- a large number of "floors" of the management vertical;
- disunity of divisions of subdivisions from divisions of the head enterprise;
- the main managerial ties are vertical, therefore, the shortcomings common to hierarchical structures remain: red tape, insufficiently clear interaction between departments in resolving issues, overloaded managers, etc.;
- duplication of functions on different "floors", which leads to high costs for the maintenance of the management structure;
- in divisions, as a rule, a linear or linear-staff management structure with all their shortcomings is preserved.
Matrix (project) organizational structure management is created on the basis of a combination of two types of structures: linear and divisional. General instructions to performers are given by line managers, and special instructions are given by the heads of divisions implementing a specific project (Figure 5.6).
Figure 5.6 - Matrix (project) organizational structure
management
Thus, a distinctive feature of the matrix organizational structure of management is the presence of two managers with equal rights among employees. The contractor reports to the head of the functional service and the project manager, who is endowed with certain powers in the framework of the implementation of this project.
The main advantages of the matrix organizational structure of management:
- a clear focus on the goals of the project;
- more efficient ongoing project management;
- more efficient use of the qualifications of the enterprise's personnel;
- strengthening control over the implementation of individual tasks and stages of the project;
- reducing the time for making managerial decisions, as horizontal communications and a single decision-making center have been created.
The main disadvantages of the matrix organizational structure of management:
- double subordination of project executors;
- complexity of information links;
- high requirements for the qualifications, personal and business qualities of the employees involved in the implementation of the project;
- the possibility of conflict situations between the heads of departments and projects.
This type of management structure is used in large enterprises whose products have a relatively short life cycle and often change due to the scientific and technical development of the industry or require extensive research and technical development.
In practice, none of the listed management structures is used in its pure form, with the exception of a linear one, and then only in small enterprises. The vast majority of them use a mixed type of management.
The construction of organizational management structures is carried out taking into account the specific conditions of the enterprise's activity: the scale of activity, the type of products manufactured, the nature of production, the scope of activity (local, national, foreign market), the qualifications of employees, automation of management work, etc.
The development of an organizational management structure includes the following steps:
- setting goals and objectives of the enterprise;
- determination of the functions carried out by the enterprise to achieve its goals (general management, planning, finance, financial control, management and accounting, personnel management, marketing, procurement and sales, production);
- grouping and (or) interconnection of functions;
- identification of structural units responsible for the implementation of specific functions;
- analysis, planning and description of all main types of work;
- drawing up a recruitment and training program for new units.
The organizational structure of management must meet the following requirements:
- ensure efficiency of management;
- have a minimum number of management levels in specific conditions and rational communications between management bodies;
- be economical.
The development of new types of products in the face of increasing competition, the intensive introduction of modern equipment and technologies, the development of new methods of organizing production require constant improvement of organizational management structures.
test questions
- 1. What is meant by the organization of production?
- 2. What is meant by the production process?
- 3. Name the principles of organization of the production process at the enterprise.
- 4. What is meant by the production cycle?
- 5. What factors affect the duration of the production cycle?
- 6. What is the economic importance of the duration of the production cycle?
- 7. What are the forms of social organization of production?
- 8. What is the essence of the concentration of production?
- 9. Why are specialization and cooperative production interrelated?
- 10. What are the forms of specialization of production?
- 11. What is the combination of production?
- 12. What are the forms of combined production?
- 13. What are the types of production?
- 14. What is meant by the production structure of the enterprise?
- 15. What factors determine the production structure of the enterprise?
- 16. What is a production site, workplace?
- 17. What is meant by the production infrastructure of an enterprise?
- 18. What is meant by the organizational structure of the enterprise?
- 19. What requirements should the organizational structure of management at the enterprise meet?
- 20. Why is it necessary to improve the organizational structure of management?
Forms and methods of implementing the principles of formation of organizational structures make it possible to distinguish several types of them. So, according to the level (degree) of differentiation and integration of management functions, two classes of structures are distinguished:
- mechanistic, or bureaucratic, pyramidal, based on the centralist type of integration;
- organic, or adaptive, multidimensional, based on a combination of centralist and free types of integration.
Mechanistic (bureaucratic) pyramidal structures
Sustainability and rationalism were priority parameters for the formation of bureaucratic structures for managing organizations already at the beginning of the 20th century. The concept of bureaucracy, then formulated by the German sociologist Max Weber, contains the following characteristics of a rational structure:
- a clear division of labor, which leads to the emergence of highly qualified specialists in each position;
- hierarchy of management levels, in which each lower level is controlled by a higher one and is subordinate to it;
- the presence of an interconnected system of generalized formal rules and standards that ensures the uniformity of the performance of their duties by employees and the coordination of various tasks;
- formal impersonality of performance of official duties by officials;
- recruitment in strict accordance with qualification requirements; protection of employees from arbitrary layoffs.
Pyramid bureaucratic structures include: linear, functional, linear-functional, linear-staff, divisional organizational structures.
Linear organizational structure of management
The linear structure implements the principle of unity of command and centralism, provides for the performance by one head of all management functions, subordination to him on the rights of unity of command of all lower units (Fig. 11.1).
This is one of the simplest organizational management structures. Hierarchy is clearly manifested in linear structures: at the head of each structural unit there is a head endowed with all powers, who exercises sole management of subordinate employees and concentrates all management functions in his hands.
With linear management, each link and each subordinate has one leader, through whom all control commands pass through one channel at a time. In this case, management links are responsible for the results of all activities of managed objects. We are talking about the allocation of managers per object, each of which performs all types of work, develops and makes decisions related to the management of this object.
Since in a linear management structure decisions are passed down the chain from top to bottom, and the head of the lower level of management is subordinate to the head of a higher level above him, a kind of hierarchy of heads of this particular organization is formed (for example, head of a section, head of department, store director, site foreman, engineer , head of the shop, director of the enterprise). In this case, the principle of unity of command applies, the essence of which is that subordinates carry out the orders of only one leader. In a linear management structure, each subordinate has his own boss, and each boss has several subordinates. Such a structure functions in small organizations, and in large ones - at the lowest level of management (section, brigade, etc.).
The linear organizational structure of management has its advantages and disadvantages (Table 11.1).
Table 11.1
| Advantages | disadvantages |
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In the functional structures, functional units are created, endowed with authority and responsibility for the results of their activities. Linear links differ from functional ones by the integration of object management functions, a set of powers and responsibilities. The bottom line is that the performance of certain functions on specific issues is assigned to specialists, i.e. each management body (or executor) is specialized in the performance of certain types of management activities. In an organization, as a rule, specialists of the same profile are combined into specialized structural units (departments), for example, a planning department, accounting, etc. Thus, the overall task of managing the organization is divided, starting from the middle level, according to the functional criterion. Hence the name - functional management structure (Fig. 11.2). Instead of universal managers who must understand and perform all management functions, there is a staff of specialists with high competence in their field and responsible for a certain area (for example, planning and forecasting).
The functional structure implements the principle of separation and consolidation of management functions between structural divisions, provides for the subordination of each lower-level linear division to several higher-level managers who implement management functions. The advantages and disadvantages of this structure are presented in Table. 11.2.
Table 11.2
| Advantages | disadvantages |
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Experts point to a close relationship between the size of the firm and the organizational structure of management. The expansion of the size of the enterprise, the complication of internal relationships create conditions, and also necessitate the adoption of comprehensive decisions aimed at restructuring the organization of intra-company management, an increase in the size of the company leads to a deepening of structural differentiation (branches, levels of management, organizational units).
In turn, this leads to an increase in administrative and management costs, as well as costs associated with coordination, but does not reduce the advantage of homogeneity of large firms, which is due to the fact that these firms are managed from a single center. However, the structural differentiation inherent in large firms requires the use of indirect (economic) methods of management and coordination of the activities of various organizational units.
Types of committees
There is no doubt about the advantage of using committees in such work, which requires the coordination of actions of management units, consultation in decision-making, the definition of powers and responsibilities, and the development of a work schedule.
New types of organizational structures
Currently, such types of structures are developing as network and virtual organizations, organizations with "internal" markets, multidimensional organizations, market-oriented organizations, entrepreneurial organizations, participatory, adhocracy, intellectual, learning organizations, circular corporations, etc.
A network structure means that an organization disaggregates its core functions (manufacturing, sales, finance, research and development) between individual contracting companies brokered by a small parent organization. The organizational chart of a hypothetical network organization is shown in fig. 11.10.
Network organizations differ from organizations of other types in a number of ways. First, network organizations rely more on market mechanisms than on administrative forms of resource management. Second, many of the networks that have recently been developed involve a more active and motivated role for participants. Thirdly, in an increasing number of industries, networks represent an association of organizations based on cooperation and mutual ownership of shares by group members - manufacturers, suppliers, trading and financial companies.
The so-called virtual organization or structure is closely related to the network structure. Unlike traditional mergers and acquisitions, partners in virtual organizations share costs, use each other's production experience and access to international markets.
The hallmarks of networked virtual organizations of the future can be summarized as follows:
- the use of information technology to establish strong contacts;
- joining forces to realize new opportunities;
- lack of traditional boundaries - with close cooperation between manufacturers, suppliers, customers, it is difficult to determine where one company begins and another ends;
- the main advantages and disadvantages of such organizations are given in Table. 11.7;
- trust - partners share a sense of "common destiny", realizing that the fate of each of them depends on the other;
- Excellence – Since each partner brings their “core competencies” to the union, it is possible to create an organization that is modern in every way.
Table 11.7
| Advantages | disadvantages |
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Multidimensional organization. This term was first used in 1974 by W. Goggin when describing the structure of Dow Corning Corporation. Multidimensional organizations are an alternative to the traditional type of organizational structures. As we know, in traditional organizational structures, the allocation of organizational units occurs, as a rule, according to one of the following criteria:
- functional (finance, production, marketing);
- grocery (for example, factories or production units that produce various goods and services);
- market (say, by regional principle or by type of consumer).
Depending on the specifics of the activity, one or another criterion prevails in the construction of the organizational structure. Over time, under the influence of external changes and changes in the company itself (its size, scale of activities, other internal factors), the very organizational structure of the company and the prevailing principle of division divisions may change. For example, with access to regional markets, the traditional linear-functional structure can be transformed into a regional divisional one. At the same time, reorganization is a rather lengthy and complicated process.
In a dynamic external environment, the company must be able to respond instantly to changes, so a structure is required that would not need to be rebuilt. Such a structure is a multidimensional organization.
Multidimensional organizations are organizations in which structural units simultaneously perform several functions (as if in several dimensions) (Fig. 11.11), for example:
- provide their production activities with the necessary resources;
- produce a specific type of product or service for a specific consumer or market;
- ensure the sale (distribution) of their products and serve a specific consumer.
The basis of a multidimensional organization is an autonomous working group (subdivision) that implements all three functions: supply, production, distribution.
Such a group may be a "profit center". Sometimes these can be independent companies.
Units are easily included in the organizational structure and can leave it, their viability depends on the ability to produce goods and services that are in demand. Product or service-oriented divisions pay internal and external suppliers on a contractual basis. Functional divisions (production, warehouse, personnel, accounting) provide services mainly to other divisions of the company, being suppliers for them. Thus, there is an internal market within the organization. Divisions respond flexibly to changing needs of internal and external customers. Consumers automatically control their suppliers. At the same time, the performance of the unit does not depend on the performance of another unit, which facilitates the control and evaluation of the unit's performance.
Features of multidimensional organizations are as follows:
- departmental budgets are developed by the departments themselves, the company invests in them or gives loans;
- in multidimensional organizations there is no dual subordination, as in a two-dimensional matrix model, the leadership of the group is one;
- many divisions within a multidimensional organization can also be multidimensional. Divisions can also be multidimensional, even if the organization as a whole is not multidimensional (for example, a regional branch of a large corporation may be multidimensional, while the corporation as a whole is a divisional structure);
- there is no need to carry out any reorganization of the organizational structure as a whole and the relationship of autonomous groups, units can simply be created, eliminated or modified;
- each division of the organization can be completely autonomous, engaging in both recruitment and sales of finished products, etc .;
- the main indicator of the effectiveness of the work of autonomous groups is the profit received; this simplifies the analysis and control over the activities of groups, reduces bureaucratization, and the management system works more efficiently.
The main advantages and disadvantages of multidimensional organizations are given in Table. 11.8.
Table 11.8
| Advantages | disadvantages |
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Circle organization. The basic principle of the circular organization is the democratic hierarchy. Leaders are not commanders, but act more like leaders. Unlike the hierarchical structure of traditional organizations, a circular organization has such features as the lack of undivided authority of leaders, the possibility of participation of each member of the organization in management, collective decision-making by the management of each member of the organization. These principles are implemented through the features of the structure of the circular organization, the main of which is that a council is formed around each leader (Fig. 11.12).
Each council, in addition to the head of the unit, includes his subordinates, as well as third-party representatives - heads of other structural units, external clients and consumers, public representatives. Participation in the council is mandatory for managers, but is voluntary for subordinates.
virtual organization. The emergence of the concept of a virtual organization is associated with the publication in 1992 of the monograph "Virtual Corporation" by W. Davidow and M. Malone.
A virtual organization is a network that includes the union of human, financial, material, organizational, technological and other resources of various enterprises and their integration using computer networks. This allows you to create a flexible and dynamic organizational system, the most adapted to the rapid creation of a new product and its introduction to the market. A virtual organization does not have a geographical center; the functioning of its divisions is coordinated with the help of modern information technologies and means of telecommunications.
The development of information technology has made it possible to make the physical presence of managers in the workplace unnecessary. Virtual associations are grouped according to the design principle, i.e. on a temporary basis.
as the need arises to create a certain product, implement a project, make a profit. The concept of a virtual organization creates fundamentally new business opportunities and is widely used in the 21st century.
An organization with an "internal market". The evolution of organizational structures is gradually evolving from hierarchical bureaucratic structures to matrix and project structures, and in recent decades to decentralized networks and business units.
The concept of "internal markets" is in stark contrast to the hierarchical structure. On the one hand, it allows you to use the potential of entrepreneurship within the organization, on the other hand, it has the disadvantages of market relations.
The basic principle of such organizations is the broad autonomy of departments (both linear and functional). Divisions are viewed as autonomous "internal businesses" that buy and sell goods and services and engage in intra- and inter-firm communications.
We list the principles of formation and functioning of organizations with "internal markets":
1. Transformation of the hierarchy into internal business units. All divisions are transformed into autonomous "internal enterprises", becoming responsible for the results of activities.
2. Creation of economic infrastructure, including common systems of accountability, communications and incentives.
3. Purposeful stimulation of synergy.
4. All departments are accountable for results, creative entrepreneurship is encouraged. Each division is treated as a small separate company that independently manages its activities and manages resources. Divisions are given the freedom to conduct business operations within and outside the organization.
5. Auxiliary functional divisions are commercial centers that sell their services to both other divisions of the firm and external customers.
So, considering the development trends of organizations and organizational structures, it can be noted that a modern organization is:
- market oriented organization. They are organic, rapidly adaptable divisional or matrix organizations in which all of their parts (R&D, manufacturing, human resources, marketing, sourcing, sales, finance, service) are clustered around a market or markets. These are organizations "driven by the market";
- entrepreneurial organization, i.e. an organization more focused on growth and on available opportunities and achievements than on controlled resources;
- participatory organization - an organization that maximizes the participation of employees in management;
- adhocracy organization - an organization that uses a high degree of freedom in the actions of employees, their competence and ability to independently solve emerging problems. This is an organic structure of a matrix, project, network type, with a predominance of informal horizontal connections. Often the structure of the organization is completely absent, the hierarchical structure is constantly changing, vertical and horizontal connections are predominantly informal;
An analysis of the experience of building organizational structures shows that the formation of management units is significantly influenced by the external and internal environment of the organization. This is the main reason for the impossibility of applying a single model of the management structure for all organizations. In addition, this impossibility is due to the specific features of a particular organization. The creation of a modern effective management structure should be based on scientific methods and principles for building organizational structures.
The main characteristic feature of the new systems of intra-company management should be: orientation to the long term; conducting fundamental research; diversification of operations; innovative activity; maximum use of the creative activity of the staff. Decentralization, reduction of levels in the administrative apparatus, promotion of employees and their payment depending on real results will become the main directions of changes in the administrative apparatus.
The process of modification of organizational management structures is developing in a number of specific areas. The main ones are the following.
1. Implementation of decentralization of production and marketing operations. For this purpose, semi-autonomous or autonomous branches have already been created or are being created within the largest companies, fully responsible for profit and loss. These departments are entrusted with full responsibility for the organization of production and marketing activities. Each department fully finances its activities, enters into partnerships with any organizations on a commercial basis.
2. Innovative expansion, search for new markets and diversification of operations. This direction is implemented through the creation of innovative companies within large companies focused on the production and independent promotion of new products and technologies on the markets and operating on the principles of "risk financing". The widespread practice of large companies is the creation of small enterprises in the most promising areas, aimed at gaining a strong position in the market in the shortest possible time.
3. Debureaucratization, constant increase in the creative production efficiency of the personnel. To this end, a wide variety of measures are being taken, including the distribution of shares among the staff and the formation of enterprises collectively owned by their employees.
In modern conditions, not only fundamentally new forms of organization for our country are required, not only radically different methods of management, but also transitional modes of activity, a gradual transformation of one structure into another. In order to comprehensively take into account both the internal characteristics of organizations and dynamically changing external circumstances, as well as emerging progressive trends, it is necessary to use a systematic approach to the formation and reorganization of enterprises.
The systematic approach to the formation of the organizational structure is manifested in the following:
- do not lose sight of any of the management tasks, without which the implementation of the goals will be incomplete;
- to identify and interconnect, in relation to these tasks, a system of functions, rights and responsibilities along the vertical of management;
- explore and institutionalize all connections and relationships along the horizontal of management, i.e. to coordinate the activities of different links and management bodies in the performance of common current tasks and the implementation of promising cross-functional programs;
- provide an organic combination of vertical and horizontal management, meaning finding the optimal ratio of centralization and decentralization in management for the given conditions.
All this requires a carefully developed step-by-step procedure for designing structures, a detailed analysis and definition of a system of goals, a thoughtful selection of organizational units and forms of their coordination, and the development of relevant documents.