Forms and methods of implementing the principles of formation organizational structures make it possible to distinguish between several types. 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 the priority parameters for the formation of bureaucratic structures for managing organizations already at the beginning of the 20th century. The concept of bureaucracy, formulated then 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, ensuring the uniformity of the performance by employees of their duties 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 of all management functions by one leader, subordination to him on the rights of unity of command of all lower divisions (Fig. 11.1).
This is one of the simplest organizational management structures. In linear structures, a hierarchy is clearly manifested: 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, section head, 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 | Flaws |
|---|---|
|
|
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 governing body (or executor) is specialized in the implementation certain types management activities. In an organization, as a rule, specialists of the same profile are combined into specialized structural units(departments), such as planning, 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 have to 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 | Flaws |
|---|---|
|
|
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, management levels, 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 big 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, where coordination of actions of management units, consultation in decision-making, determination of powers and responsibilities, and development of a work schedule are required.
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. Firstly, 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 are 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 | Flaws |
|---|---|
|
|
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 have a multidimensional structure, 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, dealing with both recruitment and sales 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 | Flaws |
|---|---|
|
|
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 virtual organization 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 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 by 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 units are commercial centers selling their services to other departments of the company, as well as to external customers.
So, considering the development trends of organizations and organizational structures, it can be noted that a modern organization is:
- market oriented organization. These 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. management structure for all organizations. Moreover, this impossibility is due to specific features specific 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. To this end, within the largest companies, semi-autonomous or autonomous branches have already been created or are being created, 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 realized through the creation within the framework of large companies innovative firms 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.
Linear-functional, divisional and matrix (project and matrix) management structures
Interaction at the level of departments in the organization is determined by the organizational structure, which is built using various types of departmentalization: linear, functional, by result and matrix.
Linear-functional organizational structure
The traditional organizational structure is a combination of linear and functional departmentalization.
The basis of the linear-functional structure is the linear divisions that carry out the main work in the organization (production), and the specialized functional divisions that serve them, created on a resource basis: personnel, finance, raw materials, marketing, etc. In some sources, the serving functional units are called the headquarters, and the linear-functional structure is called the headquarters.
The main advantages of these structures are as follows: high efficiency with a small variety of products and markets; centralized control, ensuring unity in solving the problems of the organization; functional specialization and experience; high level of capacity utilization and capacity of function specialists.
The disadvantages of linear-functional structures include: the emergence of problems of interfunctional coordination; assigning responsibility for overall results only to the highest level; insufficient response to dynamic changes in the external environment, an increase in decision-making time due to the need for their coordination in large organizations.
Linear-functional diagrams are simple and clear. They allow organizing efficient mass production, ensure the manageability of the organization until the scale of manageability is exceeded, and growth does not limit the development of effective horizontal ties. Moreover, experts believe that it is mandatory in the development of an organization to go through the stage of using linear-functional structures. This contributes to the development of the relationship "boss - subordinate" and the subsequent removal of the organization to the level of an organic type.
Traditional schemes are based on a mechanistic approach, they are effective in an uncomplicated and stable external environment.
Divisional structure
The basis of the divisional structure is the transformation of two or more divisions into profit centers for a product, consumer or market. It uses a combination of the following types of departmentalizations: linear, functional, and by result.
A. Sloan defined the divisional structure as "coordinated decentralization." The highest level in the organization centralizes the planning and distribution of basic resources, makes strategic decisions. Divisional units and their leaders within the product, consumer or market assigned to them act independently, make operational decisions and are responsible for making a profit. Tiering speeds up decision-making and the organization's response to changes in the external environment.
The use of a divisional structure increases the efficiency of managing various types of activities, allows you to solve the problems of organizational growth, when the efficiency of a linear-functional organizational structure decreases with an increase in the scale of manageability. It has proven itself in industries, both with a mechanistic and organic approach.
However, the divisional structure predisposes to the opposition of the goals of the divisions to the overall organizational goals. The disadvantages are the increase in the management apparatus (and, consequently, the cost of it) due to the duplication of individual functions of the upper apparatus for managing the management apparatuses of business units. Centralized redistribution of key resources can lead to curbing the natural development of individual business units.
The divisional structure is widely used in conditions of multi-product production, as well as when territorial disunity forces the organization of independent departments.
Matrix structure. The advantages of relations between divisions, inherent in linear-functional and divisional structures, are used by the matrix structure. It uses matrix departmentalization. It enhances the adaptability of the organization to dynamic changes in the external environment, promotes rapid changes based on the effective use of the labor of highly qualified specialists and focus on the final result. The originator of the use of matrix relationships is IBM.
The matrix structure ensures the transition from the mechanistic type of organization to the organic type. Let's compare character traits organizations of both types:
|
mechanical type |
organic type |
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Narrow specialization at work |
Broad specialization at work |
|
Working by the rules |
Few rules and procedures |
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Clarity in management levels |
Management levels blurred |
|
Clear rights and responsibilities |
Ambitious Responsibility |
|
Objective reward system |
Subjective reward system |
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Objective recruitment criteria |
Subjective selection criteria |
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Relationships are formal and official |
Informal relationships at work |
|
Conservative structure |
Structure flexibility |
|
High inertia and slow response to environmental changes |
Quick response to environmental changes |
The matrix scheme of relations has two levels of development: the first level involves the active formation of various semi-autonomous groups to solve individual problems; the second level is the creation of a matrix structure of the organization as a whole.
At the first level of development, both temporary and permanent target complex groups are formed, while the basic structure of the organization remains traditional. Such structures are called design structures.
In practice, the creation of target and other types of groups, due to their temporary nature and the high degree of dynamism of circumstances, is rarely accompanied by their separation into permanent formal structures. Specialists involved for the period of the group's work are in a situation of double subordination, i.e. Report to their immediate functional manager and the head of the semi-autonomous working group. An important condition for the effective use of such groups is that managers have special knowledge and skills in the field of people management.
When organizing group work, it is necessary to clearly define the scope of activities to which the rights and responsibilities of the group will apply, since the group is usually given the right to plan and implement its actions, which significantly reduces the possibility of interference in its work by functional and line managers. This approach allows you to enrich the work in the group and motivates employees. It should be borne in mind that group work is most effective if the group is formed for tasks that "cross" the lines of functional and linear leadership.
The main disadvantage of using groups as an element of the organization's matrix structure is the lack of a permanent place for employees due to intensive movement from group to group. The whole organization becomes as if temporary, which can lead to a loss of control over the general state of affairs.
When an organization uses too much group work and the disadvantages associated with it begin to outweigh the advantages, the next step is a purely matrix structure of the organization.
The matrix structure provides for functional and administrative managers (by results). Chief Executive(in this case, the director) maintains a balance in the system of dual subordination.
Features of the construction of matrix structures, their advantages and disadvantages are considered by us in the matrix departmentalization.
Hierarchical organizational structures for managing operational enterprises
3. Linear-functional organizational structure of management.
Hierarchical organizational structures for managing operational enterprises.
1. Linear organizational structure.
The simplest control structure is linear. With such an organization, control actions on the object of operation can be transferred only by one dominant person - the manager, who receives information only from his directly subordinate persons and makes decisions (and, accordingly, is responsible) on all issues related to the part of the object that he manages. All management and subordination functions are concentrated at the head, a vertical line of control and a direct way of influencing subordinates are created. Such an organization of management is possible only in small subdivisions of the operation service, for example, when a foreman or foreman directly distributes instructions to each worker in the subdivision.
With an increase in the volume of operational measures, for example, when accepting new facilities for maintenance, the number of operational personnel and their territorial disunity increase accordingly. In such a situation, direct operational contact between the manager and each employee becomes almost impossible. Therefore, a multi-level hierarchical management system is used, in which the superior manager exercises sole leadership of subordinate subordinate managers, and subordinate managers report only to one person - their immediate superior (Fig. 1). For example, the repair and construction department is subdivided into foreman and workshop sections.
A multi-level linear control structure has only vertical connections between elements and is built on the principle of hierarchy. This structure is characterized by a clear unity of command. Each employee or manager reports directly to only one superior person and through him is connected with higher levels of management. Thus, a hierarchical ladder of subordination and responsibility is created in the management apparatus.
Rice.
The main advantages of the linear management structure is the relative simplicity of the selection of leaders and the implementation of management functions. Such a management organization ensures prompt adoption and implementation of managerial decisions, unity and clarity of command and eliminates duplication of authority and inconsistency of orders. All duties and powers are clearly defined, which ensures all the necessary conditions for supporting necessary discipline a team. In addition, increased responsibility of the head for the results of the activities of the unit he leads, the receipt by the executors of interconnected orders and tasks provided with resources and personal responsibility for the final results of the activities of their unit.
The linear organizational structure ensures the minimum production costs and the minimum cost of operational activities.
The disadvantages of this type of structures include the disunity of horizontal connections, the possibility of excessive rigidity. When operating modern facilities equipped with a large number of various equipment and made using extraordinary materials, a high level of universal training is required from the manager, which in turn limits the scale of the department headed and the manager’s ability to effectively manage it. In addition, a large overload of information, multiple contacts with subordinate, higher and related organizations leads to the fact that most of the manager's time is spent on solving operational problems, and promising issues are not given sufficient attention.
The linear structure is focused on a large amount of information transmitted from one level of control to another. Its inflexibility is the reason for the restriction of initiative among workers at lower levels of management. All of these factors make it difficult for the further growth and development of the operating enterprise. Therefore, linear structures can be recommended for small organizations with up to 500 employees with a high level of technological or subject specialization, in the absence of broad cooperative ties between organizations.
This type of organizational management structure is used in the conditions of functioning of small enterprises with urgent production in the absence of branched cooperative ties . This structure is used in the management system of individual small divisions, production sites involved in the performance of work on one or more simple technologies.
To free the head of the operation service from routine work and provide him with the opportunity to focus on strategic areas, to a certain extent, the linear - staff organizational structure of management contributes (Fig. 2). This is a linear structure, which additionally includes specialized units (headquarters) that help the relevant manager in performing individual functions, primarily functions strategic planning and analysis. The main task of line managers here is to coordinate actions functional services(links) and their direction in the mainstream of the general interests of the organization.
Rice. 2. Line-staff organizational structure of management.
Such a structure also ensures the minimum production costs and the minimum cost of operational activities with great opportunities for the development of the operational enterprise. Therefore, it can be recommended for small and medium enterprises.
To manage departments full range work on technical operation complex object, the manager must have knowledge and skills in the versatile fields of science and technology. But it is extremely difficult to find a leader who knows perfectly the device, principles of operation and the theory of adjustment of numerous complex engineering systems, the work of structural schemes of modern buildings. Therefore, a functional management structure is often preferred, in which the operation of the facility is performed by several highly specialized divisions.
The functional structure is based on the principle of specialization of organizational sub-structures according to functional characteristics (production of preventive and repair work, R&D, marketing, supply, etc., i.e. homogeneous types of activities). Each specialized functional substructure reports accordingly to the person of the Top Management responsible for this area of activity (Fig. 3). Each senior manager is delegated powers within the boundaries of the function performed. The performance of individual functions on specific issues is assigned to specialists. Specialists of the same profile are united in structural units of the management system and make decisions that are binding on production units. Thus, along with the linear, there is also a functional organization. The performers are in double subordination. So, the worker is obliged to simultaneously fulfill the instructions of his line manager and the functional specialist.
Thus, the functional organizational structure of management consists of several specialized linear structures subordinate to the first person of the company. At the same time, the fulfillment of the instructions of functional bodies (departments of planning, accounting, production maintenance, etc.) within their competence is mandatory for linear divisions.
Rice. 3. Functional organizational structure of management. Solid horizontal lines show horizontal control (mandatory) links.
With a functional management structure, the line manager has the opportunity to deal more with operational management issues, since functional specialists free him from solving special issues. But management commands come from many functional services to one production unit or to one performer, and therefore the problem of mutual coordination of these commands arises, which creates certain difficulties. In addition, the responsibility of performers for the performance of their duties is reduced, since the responsibility for the operation of the facility is actually assigned to many performers.
Therefore, the scope of the functional management structure is limited to small and medium-sized enterprise operation services with a large number of specialized works.
3. Linear-functional organizational structure of management.
Most operations services are an organized set of interrelated units, each of which deals with specific tasks. Therefore, linear-functional management structures are currently the most widespread.
The basis of linear-functional structures is the so-called "mine" principle of construction and specialization of the management process according to the functional subsystems of the organization (performance of operational activities, supply, finance, etc.). For each of them, a hierarchy of services (“mines”) is formed, penetrating the entire organization from top to bottom. The results of the work of each service of the organization's management apparatus are evaluated by indicators that characterize the fulfillment of their goals and objectives.
Linear-functional management structure (Fig. 4), consists of:
- line units that carry out the main work in the organization;
- specialized service functional units.
Rice. 4. Linear-functional control structure.
Linear-functional organizational management structures are most effective in a stable environment, are designed to use existing technologies, contribute to the effective implementation of standardized operational activities, and are oriented towards price competition. They are most effective where the management apparatus performs routine, frequently recurring and rarely changing tasks and functions.
Linear-functional organizational management structures have the advantages of both linear and functional. Their advantages are manifested in the management of organizations that serve many of the same type of objects.
The disadvantages of the linear-functional structure are the violation of the principle of unity of command, the difficulty in making and implementing agreed management decisions. Rigid division of labor contributes to the strengthening of the interest of each management body in the performance of only "its" function, which is typical for functional units. Therefore, when new, non-standard, complex, inter-functional tasks appear, there is a need for frequent approval of draft decisions at the highest level of management. This circumstance complicates the use of the control system under consideration, since it is the least susceptible to progress in the field of science and technology.
The shortcomings of the linear-functional management structure are exacerbated by such business conditions under which a discrepancy between the responsibilities and powers of managers of different levels and departments is allowed; controllability standards are exceeded; irrational information flows are formed; excessively centralized operational management of production; the specifics of the work of various departments are not taken into account; there are no regulatory and regulatory documents necessary for this type of structure.
The linear-functional structure is most applicable in medium and large enterprises, with a staff of 500 to 3000 people.
When the linear-functional structure is supplemented by a headquarters body, a linear-staff organizational structure of management is formed.
The line-staff (headquarters) management structure is also built on the principle of functional specialization of managerial work, however, the main task here is to coordinate the actions of functional services at headquarters various levels and thus the direction of these actions in accordance with the general interests of the organization (Fig. ... 5).
The headquarters reports to the line manager (LR). It is not vested with the right to make decisions, but only performs the functions of an advisory body preparing draft decisions.
Rice. 5. Line-staff management structure.
Thanks to the unification of functional specialists in one management body, the line-staff organization of management ensures the efficiency and quality of decisions due to their comprehensive justification. It virtually eliminates conflicting orders and allows you to release line managers from activities to coordinate the work of various services.
The main advantages of the management structure under consideration are a significant increase in the efficiency of using management potential to solve urgent problems.
However, management systems with a linear staff structure do not effectively solve new problems (transition to the production of new products, changes in technology, etc.). In addition, additional costs are required for the creation of special councils, boards, commissions for coordination and decision-making.
The line-headquarters management structure is created for the most successfully considered structure provides the prompt solution of extraordinary tasks - the elimination of the consequences of natural disasters, etc.
The development and expansion of an operating facility may not be limited to a simple increase in the number of facilities to be serviced. In domestic and world practice, there are many examples when a large enterprise is simultaneously engaged in the design, construction and operation of its own buildings and structures.
The disadvantages of linear and functional management structures lead to the search for other options for an organization that provides more effective management. A possible solution in such cases is a divisional structure. Basically, according to this model, a structure is built enough large organizations which, within the framework of their enterprises, began to create production departments, giving them a certain independence in the implementation of operational activities. At the same time, the administration reserved the right to strict control over corporate-wide issues of development strategy, design, research and development, investment, etc.
The divisional structure directly follows from the functional one when delegating a significant number of powers to the managers who head the functional areas, granting them a certain independence (Fig. 6), leaving the development strategy, research and development, financial and investment policy, etc. to the management of the corporation.
Fig.6. Divisional (divisional) management structures. Dashed horizontal lines show horizontal control (recommendatory) links.
Structuring the organization by departments, as a rule, according to one of three criteria:
- by type of activity performed (operation of facilities, provision of additional services, construction, design);
- by consumer orientation (consumer specialization);
- by served territories (regional specialization)
In the production departments themselves, management is built according to a linear-functional type.
The division of functions in the divisional structure is not limited to the classical principle: work performance - deliveries - finance. In large enterprises, departments subordinate to them begin to specialize in the performance of any one type of work or increase the volume of performance. This gives rise to production structure. The exit of enterprises with these products outside their region leads to the need to create territorial structures. The unpredictability and instability of the external environment require managers to create an innovative structure, where special departments develop, master and prepare for the implementation of new types of work. Such organizational structures received a certain independence and the right to dispose of their funds not strictly according to instructions, but in accordance with the rapidly changing external environment and internal capabilities. The local initiative has increased, which is being implemented by those who come forward with it, while at the same time being fully responsible for the result. It became possible to respond faster and more efficiently to changing situations and to take into account new needs. As a result, the minimum production costs and the minimum cost of the work performed are ensured.
At the same time, divisional management structures lead to an increase in hierarchy, i.e. vertical of control. They will require the formation of intermediate levels of management to coordinate the work of departments, groups, etc. Duplication of management functions at different levels ultimately leads to an increase in the cost of maintaining the administrative apparatus. In addition, the process of monitoring the actions of new structures becomes much more complicated. Negative results of the work can only appear over time, when it will be too late to correct the situation from above. The expansion of horizontal ties, for all its positivity, brings about a weakening of vertical ties. Difficulties may arise due to duplication and confusion in the network of commands and managerial decisions. Excessive autonomy of parts of the organization can lead to a complete loss of influence on the part of the central structures, and, consequently, subordination to common goals and objectives.
Organizational structure, which is a certain ordering of tasks, roles, powers and responsibilities, creates conditions for the enterprise to carry out its activities and achieve established goals. It develops and changes under the influence of the peculiarities of the enterprise strategy, its internal complexity and changes in the external environment. A wide range of structures extends from stable monolithic formations to dynamic multifaceted structures of modern organizations.
The variety of organizational structures is associated with differences in the field of activity, the nature and complexity of the products produced, the size, degree of differentiation and territorial location of enterprises. Yes, the structure is small. trade organization or a repair shop cannot have anything in common with the structure of a large machine-building enterprise producing a wide range of machines and equipment. In turn, the organizational structure of a transnational corporation and a financial and industrial group is incomparable with it. In small enterprises, there are no complex problems with the organizational structure. If the functions in such an enterprise are carried out properly (without an excessive number of services and unnecessary hierarchical constructions), then their implementation requires such a limited number of employees that structural problems fade into the background before problems related to the personal characteristics of managers (their knowledge, experience, style of work, organizational skills, responsible performance of duty).
At the same time, problems of organizational structure arise not only at large enterprises. The organization of vertical and horizontal connections, project management is also necessary in medium-sized enterprises. This has a direct bearing on all cases where there is an intermediate management team, and also when it is generally possible to carry out a certain division of labor. Under all conditions, there is a problem of choosing one or another type of organization? structure, adequate to the real requirements of the external and internal environment, the tasks of meeting consumer demand, technological and social development, achieving cost-effective results. The main types of organizational structures that have developed to date are discussed below.
Linear-functional structures
Functional structuring is the most widespread form of organization of activities and takes place in almost all enterprises at one level or another of the organizational structure. This is the process of dividing an organization into separate elements, each of which has a well-defined, specific task and responsibilities. Creation functional structure (Fig. 9.1) comes down to grouping personnel according to the broad tasks they perform (production, marketing, finance, etc.). Specific Features and the features of the activities of a particular unit correspond to the most important areas of activity of the entire organization. In cases where the functional structure is used partially, one of the functions (for example, financing) is carried out either at a higher level of management, or at the same level with units structured by product, customer or territorial basis.
The value of the marketing, production and financial functions of the enterprise is widely recognized, and they are often taken as the basis for the structure of the organization. The coordination of these functions is determined at a level above which only the head of the enterprise is located. This provision is ver-
Rice. 9.1.
Functional management structure
but regardless of the basis on which the grouping of activities within the enterprise is carried out and how important the functions of a particular unit are. The chain of command comes from the president (CEO) and permeates the structure from top to bottom. Sales management, financial matters, data processing and other functions that are specific to a particular enterprise are carried out by vice presidents. Managers report to them. And so on down the hierarchical ladder, the tasks are subject to further functional fragmentation in accordance with the processes.
The functional organization is aimed at stimulating the quality of work and creativity workers, as well as economies of scale in the production of goods or services. However, maintaining interaction between different functions is a difficult task. The implementation of different functions involves different time frames, goals and principles, which makes it difficult to coordinate activities and schedule them. In addition, functional orientation is associated with a preference for standard tasks, encouraging narrowly limited perspectives, and reporting on performance.
The functional structure is not suitable for organizations with a wide range of products operating in an environment with rapidly changing consumer and technological needs, as well as for organizations operating internationally, simultaneously in several markets in countries with different laws. The logic of this form is centrally coordinated specialization. It is difficult to track the contribution of each element of resources to the final result and the overall profitability of the organization. In fact, the current trend towards disintegration(i.e. buying rather than manufacturing parts, etc.) reflects the understanding by many firms that the necessary coordination of costs and resources used is reflected in performance. A functional organization can fail due to improper modification, because the logic of this organization is centralized control, which does not easily adapt to product diversification.
In its pure form, the functional structure is practically not used. It is used in organic combination with linear structure (Fig. 9.2), built on the basis of a vertical hierarchy of management and based on the strict subordination of the lowest level of management to the highest. With such a construction, the performance of highly specialized functions is intertwined with a system of subordination and responsibility for the direct execution of tasks for the design, production and delivery of products to consumers. (Fig. 9.3). Decentralization of management within linear functional structure leads to the fact that the division of rights and responsibilities is split between different bodies that manage technical developments, the purchase of raw materials and materials, production, marketing, etc. This process is most typical for enterprises that consistently produce great amount homogeneous products and economies of scale in production are significant. One of the conditions for the decentralization of the structure can be a situation where the market
Rice. 9.2.
Linear control structure
Rice. 9.3.
Linear-functional management structure
is a single whole and is characterized by a high degree of concentration of consumption.
At the same time, the development of diversification of production, a sharp complication of internal and external relations, the dynamism of the introduction of technical innovations, the fierce struggle for markets for products lead to serious difficulties and in many cases completely exclude the use of functional forms of management. With the growth of the size of corporations, the expansion of the range of manufactured products and markets for their sales, the functional management structures, due to the disunity of rights and responsibilities for individual functions, lose their ability to respond to ongoing changes. In the management process, conflicts arise in the choice of priorities, decision-making is delayed, communication lines are lengthened, and the implementation of control functions becomes difficult.
Rice. 9.4.
Building an organization according to the linear-functional principle
(with grouping by type of activity)
The shift away from the use of strictly functional corporate management schemes in favor of a divisional structure for organizing activities by departments is quite clearly traced with the development of production diversification. However, in practice, there is a certain restraint regarding decentralization and its acceptable limits are set. This is due to the fact that the negative aspects of the excessive freedom of departments and enterprises in choosing areas of production activity and making responsible management decisions have become clearly visible. In many cases, corporate management loses the ability to control the production and economic activities of departments, and complex information problems arise. Therefore, the top managers of many corporations, without abolishing the departments that have received sufficient independence, make significant amendments to their organizational structure, subordinating them to their power to a much greater extent.
The divisional form can be viewed as a combination of organizational links serving a specific market and managed centrally. Its logic is to combine the autonomy of departments with a centrally controlled process of resource allocation and evaluation of results. While divisional firms can easily infiltrate related industries, there is a danger of over-expansion. Thus, many such firms, expanding their activities in new markets, were unable to properly assess its results and make investment decisions. Divisional firms are also at risk of modifications that violate the chosen logic of the organization.
It is known that enterprises moving to the product type of structural construction were initially functionally organized. As organizations expanded, production, sales, and other executives, as well as technicians, faced the challenges of scaling up operations. The functions of the manager became more and more complicated, and the range of control limited his ability to increase the number of subordinates. Structural reorganization based on the product began to be seen as a way out. This approach allows for the delegation by the top management of extensive powers to manage the production, marketing, auxiliary and engineering activities associated with the manufacture of a specific product or range of products (Fig. 9.5).
Rice. 9.5.
Product management structure
The product or range of products is an important feature of structural division, since in this case conditions are created for the use of specialized means of production, coordination is facilitated, and the widest possible use of individual abilities and special knowledge of personnel is allowed. Structuring by product becomes objectively justified if it is important for an enterprise to coordinate various activities related to the production of a product. Due to this structuring, greater coordination of actions is achieved and customer service is improved. If the fundamental principle of marketing activities and technical support industrial production comes into play, then the cooperation of these two functions with production activities becomes of key importance.
When structuring by product, the responsibility for making a profit lies mainly with the heads of departments. Where managers cover production, sales, engineering and ancillary activities, as well as control the costs associated with this, the real possibilities of achieving pre-set goals sharply increase. Unit leaders share responsibility for making profits with other similarly organized groups, which gives the top manager the opportunity to assess the contribution of each to the overall profit of the enterprise.
Territorial division is a fairly common method of structuring enterprises dispersed over a wide area. All activities of the enterprise in a given territory are grouped and subordinate to its top manager. (Fig. 9.6). Territorial structuring particularly attractive to large diversified firms. They use this form when similar business transactions are conducted in different geographic regions. Territorial structuring is appropriate in cases where its goal is not only to encourage the participation of local links in the decision-making process, but also to save money achieved by localizing the commercial operations of the enterprise. Her choice is associated with lower costs. The choice of an area for the location of enterprises can be made on the basis of the desire to reduce transport costs. Correct location storage space will reduce the time spent on delivery, which is an important factor that can affect the receipt of orders. Regional offices are seen as the best place to gain experience for aspiring leaders. Moreover, at that stage of the organizational structure, it will be most useful for them with minimal risk for the company.
Rice. 9.6.
Regional organizational structure
From the point of view of local factors, the use of a territorial organizational structure acquires some additional advantages. This causes the creation of new jobs for the local population, not to mention the economic benefits, namely the reduction of transport costs, rents, labor costs. The advantages of the territorial organization of marketing activities are mainly in cost savings and high efficiency work. Sales staff can spend more time selling products and reduce travel costs. In addition, by being closer to the buyers, he gets the opportunity to study their needs, market preferences and find out which market strategy will have the greatest chance of success. In large diversified companies, divisional structures of a mixed type appear, combining both product and territorial principles of construction. (Fig. 9.7).
One of the noticeable trends in the organizational restructuring of enterprises in a transitional economy is a significant increase in the independence of individual links in management structures and the creation of subsidiaries on this basis. Around large enterprises a network of small mobile firms is being formed that can quickly reorganize the application
Rice. 9.7.
Mixed divisional management structure
in response to changing demand. Thanks to this, enterprises-producers of products are approaching the consumer sector, and the process of selling products is accelerating. From the production and organizational structure of many large enterprises, subdivisions with full production cycle. On the one hand, independent economic entities are created, focused on certain consumers, and on the other hand, the integrity of the production and technological complex, the general focus and profile of its activities are preserved.
An equally significant trend is the formation of independent commercial organizations that use the property of the base enterprise on the basis of lease relations. With the help of periodic adjustments to lease agreements, a certain coordination of the activities of newly created organizations is ensured. Retaining ownership of the underlying enterprise makes it possible to maintain and develop the production system as a whole. Below is a comparative assessment of the advantages and disadvantages of linear-functional and divisional organizational structures, which allows, taking into account the characteristics of specific conditions, to determine the possibility of using one or another form of organizational construction (Table 9.1).
Table 9.7
Comparative characteristics of organizational management structures
|
Linear-functional |
Divisional |
|
Ensure the completion of specialized tasks controlled by plans and budgets |
Decentralized operations of divisions with centralized evaluation of results and investments |
|
Most effective in a stable environment |
Most effective in a changing environment |
|
Promote efficient production of standardized goods and services |
Suitable for conditions of interconnected diversification by product or region |
|
Provide savings on management costs |
Dedicated to operational decision making |
|
Provide specialization of functions and competence |
Create organizational conditions for an interdisciplinary approach |
|
Focused on price competition |
Operate successfully with non-price competition |
|
Designed to leverage current technology and an established market |
Focused on the development of new markets and new technologies |
|
Production specialization that exceeds the possibilities of central planning |
Intervention top management organizations to strengthen the coordination of departments and increase the efficiency of their activities |
|
Quick resolution of problems within the competence of one functional service |
Rapid resolution of complex cross-functional problems |
|
Vertical integration, often exceeding the full capacity of specialized units |
Diversification within the corporation or the acquisition of external organizational units |
collegiate bodies
When using various types of organizational structure, collegial forms of work become important. These are committees, target working groups, commissions, councils, boards. Of course, these forms do not represent any particular type of structure. They can be permanent or temporary, have a different status, level of authority granted, and perform different tasks in the organization. collegiate bodies are often empowered to make certain decisions, exercise leadership (or delegate authority to exercise leadership). There is a well-known practice of forming such bodies to perform advisory functions, that is, to present a reasonable opinion on a particular issue to the head of any level. Let us consider in more detail the issues of organizing their activities and the level of authority.
1. A collegial body of an information nature. At meetings of this body, contacts are made between the heads of departments. Their common leader informs the participants of the meeting about the current situation, about the adopted and planned decisions. As a result, methods for implementing solutions can be refined. Bodies of an informational nature are needed primarily at the highest levels of government. Their use at lower levels serves to improve mutual understanding, in particular between specialists (or employees of functional units) and line managers. The activity of such a body is designed to lead to strengthening of ties and improvement of personal relationships.
2. Collegial advisory body. Such a body (committee, expert council, etc.) may have the task of studying some problem and presenting an opinion on it. It does not replace, but complements the activities of existing experts in the organization. At the same time, it is necessary to distinguish between the bodies involved in research and the bodies that use the conducted research to draw up their conclusions. An advisory body may act with the help of specialists or experts when it is possible to combine their knowledge on a particular complex problem. There are cases when the head of an organization gathers a certain number of specialists working in advisory and staff services for collegial work. At the same time, the issue under consideration is complex and requires the knowledge of various specialists, and the body can play some coordinating role.
3. A collegial body authorized to make decisions. This kind of body can be used in the absence of a line manager to perform this function, as well as to assist the line manager in making particularly important decisions. For example, there are committees to decide on the general policy of the organization. Such a body is chaired by the top manager of the organization, and the heads of critical departments and experts within it play a very active role.
4. Collegial body exercising control. Such an organizational link performs in relation to the leaders mainly the role of a body that gives permission to make decisions that meet certain requirements. He also oversees the implementation of these decisions. The activities of collegiate bodies may cover various areas of the organization's activities: 1) decisions related to the overall strategy and policy; 2) management acts and administrative actions; 3) direct executive activity that implements the decisions made.
The advantages of such organizational form associated primarily with the joint work of a group of people. A special mutual understanding between people is achieved in groups whose members are characterized, as a rule, by the same behavior and even specific skills (linear and functional leaders, specialists in the field of technology, economics, commercial activities and so on.). At the same time, coordination of the work of various services or employees of the administrative apparatus is ensured. It is also significant that there is a clash of different points of view of people who usually engage in different types of activities, and most importantly, who have unequal training and experience. In many cases, this contributes to the emergence of new ideas. In addition, collegiate bodies contribute to the stability of the organization, since they enable a certain number of managers to be aware of the problems of related services, and also create conditions for the training of young leadership personnel.
Features of the internal environment of the management structure
Modern organizational structures focused on solving the strategic problems of the organization's development
Description of linear-functional, divisional and matrix organizational structures of management (10+)
Linear-functional, divisional, matrix organizational structures
The choice of the management structure of a company or organization is one of the factors affecting labor productivity. Which model will be optimal depends on the individual characteristics of the company, the qualifications of managers. An unsuccessful decision can become one of the most powerful time traps, interfere with work and demotivate employees. Let us analyze the features of the three main models of organizational structures.
Linear-functional organizational structure
In the diagram here and below, blue circles show employees. Each block (management, department) has its own leader. Heads of departments report to heads of departments, and heads of departments report to the management of the company. The division into blocks occurs according to the functions that these blocks perform. Hence the name. If the company is large, then there may not be three levels of management (Management - Head of Department - Head of Department), but much more, but the essence of this does not change.
All questions concerning a certain function are transferred to the head of the corresponding unit, and he already distributes the work among his subordinates.
Divisional management model
In this scheme, the division into blocks occurs not according to functions, but according to the product or set of services produced. Each division produces its own product / service / product, and all functions are implemented within the division. That is, each division has its own accountant, its own IT specialist, its own lawyer, etc. The divisions are very similar to small enterprises. They earn money themselves and spend it themselves to maintain their activities. Only divisions are within the same corporation. Management sets goals for them and monitors their achievement, as small business owners do.
All issues related to a particular product are decided by the head of the relevant division.
Sometimes it is unprofitable to keep your lawyer or accountant or someone else in such a division. Then this function is given to outsourcing. Moreover, the outsourcer can be either an external company or another division. Often there is an accounting division, a legal division, an IT division. These divisions also produce services in their area, only these services are consumed internally by other divisions. Internal prices are set for these services, at which the expenses of some divisions and the income of others are reflected in management accounting. Each division is free to choose whether to buy these services internally or from a third-party provider, but the accounting division, for example, can engage third-party accounting clients, and IT and lawyers can serve other companies.
Matrix control structure
The matrix model is a hybrid of linear-functional and divisional. Each employee in it reports to several managers at once. So, on issues of work schedule, general methodology of his work, training, selection of projects in which he participates, the employee reports to the line manager (head of department). And on issues related to the project - the project manager.
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