What is a functional management structure? What is it, what is connected with it, what scheme does it have? We will try to answer these questions, as well as others, in the course of this article.
The functional management structure is a type of structure that is formed based on the main directions in which a particular organization operates. In this case, the units will be combined into special blocks.
Many large and medium-sized enterprises and organizations use an approach called “functional” when forming divisions. What does it mean? This means that the functional management structure implies the use of functions in the areas in which the company operates. This may be sales of products, their production and similar actions. The blocks will be formed according to their functions, that is, they will have the same root names that are characteristic of the area of activity.
The functional structure of management has some features: the separation of divisions located within the boundaries of blocks can only be carried out according to certain approaches. Let's give a simple example: the organization of workshops takes place with an eye on the products being manufactured. At the same time, the organization of sites will be dictated by the technologies used in the production of products.
Structure blocks
The functional structure of management assumes the presence of three blocks.
The first is production. It includes those divisions that are in one way or another related to the core products manufactured by the company. The connection can also be between services and their provision, and not only visible in the case of products. The production block also houses auxiliary units that provide all the services necessary for the functioning of the main units. Also in the production block are those divisions that service both auxiliary and main processes. Well, this chain is completed by experimental units. They are responsible for producing prototypes of certain products. The role of departments can be very different. Moreover, it will directly depend on the nature of the activities carried out by the organization. Not every company creates prototypes. And the means that are used for auxiliary production are also not available in every company.
The second block is management. The functional structure of management in this case suggests that the block will contain service, information, pre-production (that is, preparatory), administrative and advisory departments and commissions. Let's look at this issue a little more specifically. Information departments include various kinds of archives and libraries. Service units will carry out their activities dealing with issues related to research in the field of marketing. Administrative commissions are nothing more than legal departments and accounting departments, planning services. But advisory commissions can be presented as committees working in the field of improving technology and the organization as a whole.
The third block, which is used by the functional management structure, is divisions related to the social sphere. Examples include certain children's institutions and health centers, various clubs and recreation centers, and so on.
Where is the functional organizational management structure used?
The question of the scope of application today has already been studied far and wide. There are 5 main areas where functional organizational structure management. The first area is single-product enterprises. The second is enterprises that implement quite complex and long-term projects. They can also be innovative. The third area in which the functional structure of enterprise management is applied is large companies and firms that are concentrated on the production of a certain type of product, that is, which have their own specialization. The fourth area of application of this management structure is the organization of design and research activities. Well, this list is completed by enterprises with a very narrow specialization.
What tasks does a functional control system solve?
In the course of using this structure, several challenges arise that management faces. Let's try to list them:
1) Difficulty in ensuring communications.
2) Leveling the load that falls on a particular unit.
3) Careful selection of personnel and specialists who will be allowed to work in functional departments.
4) Assistance in coordinating departments.
5) Prioritization, selection of specialists.
6) Development and implementation of motivational, special mechanisms.
7) Prevention of separatist processes within units.
What are the advantages of a functional management structure?
1) Specialists are quite competent in the implementation of certain specific functions.
2) Line managers practically do not participate in solving special issues. It is also possible to expand the capabilities that line managers will have while reducing their workload. Managers will be able to engage in operational management production processes, referring questions to other appropriate persons.
3) If necessary, experienced specialists participate in the role of consultants. As a result, there is no longer a need (or is noticeably reduced) to attract specialists with a broader work profile.
4) The risk of erroneous decisions will not be zero, but it will certainly be reduced to it.
5) When performing managerial functions, duplication will be excluded.
What are the disadvantages of a functional management structure?
1) It is quite difficult to maintain constant mutual connections established between services.
2) Decision making requires a lot of time, it is a long procedure.
3) Functional services often lack mutual understanding among themselves. Actions turn out to be uncoordinated, there is no unity in them. At the same time, the responsibility of performers, which they must bear for the work performed, is reduced. All this happens because different performers receive instructions not just from different managers - they receive them from several managers at the same time.
4) There is an excessive interest of certain departments in the implementation of tasks and goals.
5) Personal responsibility is reduced. No one wants to take responsibility for the final result.
6) The control required to monitor the process and its progress is quite complex. And this also applies to individual projects, and the entire region as a whole.
7) The organizational form reacts to changes with great difficulty; it has already frozen and is not developing.
Types of functional control system
One of the varieties is the linear-functional management structure. Its diagram is presented in the figures below.
The linear-functional structure is used to divide managerial labor. At the same time, functional units should advise and provide assistance on the development of certain issues, as well as prepare plans, programs, and decisions. The entire load associated with command and control is transferred to the linear units.
The linear-functional management structure, the diagram of which was shown earlier, has its advantages and disadvantages. In fact, they will become the subject of further analysis of the topic.
Managers related to departments functional type, have a certain influence on production units, but only in a formal sense. In most cases, they cannot do anything on their own, that is, they are not able to give orders without confirmation from the relevant representatives. In general, the role of functional services has a direct connection with the scale at which activities are carried out. They are also related to the management structures of an organization or enterprise. All technical training falls to the functional services. They should work through the issues in advance and leave options for their solutions. In this case, questions may relate to the management of the production process.
What are the advantages of a linear-functional structure?
1) Decisions and plans are prepared more carefully and deeply. Therefore, they have greater efficiency. Plans may also be related to the specialization of individual employees.
2) Line managers are freed from resolving a number of issues, which, in turn, allows them to reduce their workload. These are issues related to logistics, financial calculations and their planning, as well as other issues.
3) The presence of a certain connection and a clear hierarchical ladder. An employee does not report to several managers, but only to one.
What disadvantages does the linear-functional structure have?
1) Each individual link does not want to work for the common good of the company or take on other people’s tasks. In most cases, a link works only on its own goals, performing a narrow range of functions.
2) There are no close relationships between departments. There is virtually no interaction between these components. This concerns the horizontal.
3) But vertical interaction, on the contrary, is very highly developed. Even much more than necessary.
Scheme
The functional management structure, an example of which was given almost at the very beginning of this article, has the diagram shown below.
It is characterized by the creation of certain divisions. Moreover, each of them will have specific tasks that must be performed.
An example of a linear-functional management structure can be demonstrated by the Federal Migration Service. Another diagram of this management structure is presented below.
Conclusion
The advantages and disadvantages of a functional management structure were discussed during the article. The concept was also defined and the blocks included in the functional management structure were described.
Linear structure is one of the simplest organizational management structures and reflects the most general level of division of managerial labor. The essence of line management is that at the head of each department is a manager, vested with certain powers and supervising the employees subordinate to him.
Linear structure management provides a direct impact on the object of management and provides for the full implementation of the principle of unity of command. The manager himself is subordinate to his superior. At the same time, there is no staff of specialists to perform individual functions. Such a structure is organized only on vertical links, through which all control commands pass.
The linear management structure is used in small organizations at the lowest level of management, performing basic production functions; it is harmonious and formally defined, but at the same time it is not flexible enough.
Advantages of a linear structure:
ensures quick decision making;
no conflicting commands appear;
consistency of actions of performers;
full responsibility of the manager for the results of the activities of his unit.
Disadvantages of a linear structure:
lack of specialists to implement individual management functions;
the manager must have extensive, versatile knowledge in all types of activities (economic, organizational, technical, social);
the structure is not flexible enough and does not respond quickly enough to changing conditions.
Functional organizational structure sometimes called traditional or classical, due to the fact that it was the first structure to be developed and implemented.
In such a structure, management efficiency is increased through the creation of functional units, the participation of qualified specialists in the work, transferring to them powers and responsibility for the results of their activities, specializing in performing certain types of work in a unified line management system. Traditional blocks of one profile unite specialists into specialized structural units - these are departments of production, marketing, finance, etc.
Advantages:
stimulates business and professional specialization;
line managers are freed from the need to have in-depth knowledge of each function;
The work of line managers is simplified.
Flaws:
in a large organization, the chain of command from the manager to the direct executor becomes too long;
There may be duplication in management issues.
19.Linear-functional organizational structure.
The traditional linear-functional organizational structure is a combination of linear and functional departmentalization.
The basis of the linear-functional structure is line units, which carry out the main work in the organization (production), and specialized functional units serving them, created on a resource basis: personnel, finance, raw materials, marketing, etc. In some sources, serving functional units are called headquarters, and the linear-functional structure is called 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 organization’s problems;
functional specialization and experience;
high level of utilization of the potential 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;
increase in decision-making time due to the need for approvals in large organizations.
Linear functional diagrams are simple and understandable. They make it possible to organize effective mass production, ensure controllability of the organization until the scale of controllability is exceeded, and growth does not limit the development of effective horizontal connections. Moreover, experts believe that in the development of an organization it is mandatory to go through the stage of using linear-functional structures. This helps to develop the “superior-subordinate” relationship and subsequently bring the organization to the level of an organic type.
Traditional schemes are based on a mechanistic approach; they are effective in a simple and stable external environment.
Organizational structure, which represents 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 characteristics of the enterprise's strategy, its internal complexity and changes in the external environment. The wide range of structures extends from stable monolithic formations to dynamic multifaceted structures of modern organizations.
The diversity 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. Thus, the structure of a small trade organization or repair shop cannot have anything in common with the structure of a large machine-building enterprise that produces a wide range of machines and equipment. In turn, the organizational structure of a transnational corporation and a financial-industrial group is incomparable. Small enterprises do not have any complex problems with the organizational structure. If the functions at such an enterprise are carried out properly (without an excessive number of services and not necessitated hierarchical structures), then their implementation requires such a limited number of workers that the problems of the structure fade into the background before the problems associated with the personal characteristics of managers (their knowledge, experience, work style, organizational abilities, responsible performance of official duties).
However, problems of organizational structure arise not only in large enterprises. The organization of vertical and horizontal communications and project management is also necessary in medium-sized enterprises. This is directly related to all cases where there is an intermediate management team between the top management of the organization and the personnel performing direct work, as well as when it is generally possible to implement a certain division of labor. Under all conditions, the problem of choosing one or another organizational type arises? 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. Below we consider the main types of organizational structures that have developed to date.
Linear-functional structures
Functional structuring is the most widespread form of organizing activities and occurs in almost all enterprises at one level or another of the organizational structure. This is the process of dividing an organization into individual elements, each of which has a clearly 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 characteristics 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 as divisions structured by product, customer or territorial basis.
The importance of the sales, production and financial functions of an 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 position is ver-
Rice. 9.1.
Functional management structure
but no matter on what basis 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 (chief executive) and permeates the structure from top to bottom. Management of sales organization, financial issues, data processing and other functions that are specific to a particular enterprise is carried out by vice presidents. Managers report to them. And so on down the hierarchical ladder, tasks are subject to further functional division in accordance with processes.
Functional organization is aimed at stimulating the quality of work and the creative potential of workers, as well as economies of scale due to the increase in the scale of production of goods or services. However, maintaining interaction between different functions is a complex task. The implementation of various functions involves different terms, goals and principles, making it difficult to coordinate and schedule activities. In addition, a functional orientation is associated with a preference for standardized tasks, encouragement of 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, or for organizations operating internationally, simultaneously in several markets in countries with different regulations. The logic of this form is centrally coordinated specialization. It is difficult to trace the contribution of each resource element to the final result and total profit ity of the organization. In fact modern trend To disintegration(i.e. purchasing rather than producing components, etc.) reflects the understanding of many firms that the necessary coordination of costs and resources is reflected in performance. A functional organization may fail due to improper modification because the logic of the organization is centralized control, which does not easily adapt to product diversification.
IN 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 management hierarchy and based on the strict subordination of the lower management level to the higher one. With this structure, the performance of highly specialized functions is intertwined with a system of subordination and responsibility for the direct implementation of tasks for the design, production of products and their delivery to consumers (Fig. 9.3). Decentralization of management within linear-functional structure leads to the fact that the division of rights and responsibilities is fragmented between different bodies that manage technical developments, purchase of raw materials, production, sales, etc. This process is most typical for enterprises where a huge number of homogeneous products are consistently produced and economies of scale of production significant. One of the conditions for decentralization of the structure may be a situation when the market
Rice. 9.2.
Linear management structure
Rice. 9.3.
Linear-functional management structure
represents a single whole and is characterized by a high degree of concentration of consumption.
At the same time, the development of diversification of production, the sharp complication of internal and external relations, the dynamism of the introduction of technical innovations, and 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 products and their sales markets, functional management structures, due to the disunity of rights and responsibilities for individual functions, lose the ability to respond to changes. In the management process, conflicts arise when choosing 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 a linear-functional principle
(grouped by type of activity)
Departure from use strictly functional diagrams management of corporations in favor of a divisional structure of organizing activities by departments is quite clearly visible with the development of diversification of production. However, in practice, a certain restraint is shown regarding decentralization and its acceptable limits are established. This is due to the fact that they became clearly visible negative sides excessive freedom of departments and enterprises in choosing areas of production activity and accepting responsibility management decisions. 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 departments that have gained sufficient independence, make significant amendments to their organizational structure, subordinating them to their authority to a much greater extent.
The divisional form can be considered as a combination of organizational units serving a specific market and managed centrally. Its logic lies in the combination of departmental autonomy with a centrally controlled process of resource allocation and evaluation of results. Although divisional firms can easily expand into related industries, there is a danger of overexpansion. Thus, many similar firms that expanded their activities in new markets were unable to properly evaluate their results and make investment decisions. Divisional firms are also exposed to the danger of modifications that violate the chosen logic of the organization's functioning.
It is known that enterprises switching to a product type of structural structure were initially functionally organized. As organizations expanded, managers of production, sales and other departments, as well as technical specialists, were faced with problems of increasing scale of activity. The manager's functions became increasingly complex, and his range of control limited his ability to increase the number of subordinates. Product-based structural reorganization began to be seen as a way out of this situation. This approach allows for the delegation of broad authority by senior management to direct production, sales, support and engineering activities associated with the manufacture of a specific product or range of products. (Fig. 9.5).
Rice. 9.5.
Product management structure
A product or product range is an important sign of structural division, since in this case conditions are created for the use specialized means 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 the enterprise to coordinate different kinds activities related to the production of any product. Due to this structuring, greater consistency of actions is achieved and customer service is improved. If the primary basis of sales activities and technical support stands industrial production, then the cooperation of these two functions with production activities becomes of key importance.
When structuring by product, responsibility for generating profits rests primarily with department heads. Where managers have control over production, sales, engineering and support activities, and also control the associated costs, the real possibility of achieving predetermined goals increases dramatically. Divisional managers share responsibility for generating profits with other similarly organized groups, which provides senior management with the opportunity to evaluate each individual's contribution to the overall profit of the enterprise.
Division on a territorial basis is a fairly common method of structuring enterprises dispersed over a vast territory. 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 resort to this form when similar business transactions are carried out in different geographical regions. Territorial structuring is appropriate in cases where its goal is not only to encourage the participation of local units in the decision-making process, but also to save money achieved by localizing the business operations of the enterprise. Her choice is associated with lower costs. The choice of area for locating enterprises can be made based on the desire to reduce transportation costs. Correct location storage facilities will reduce the time spent on delivery, which is an important factor that can affect the receipt of orders. Regional offices are considered as best place gaining experience for novice managers. Moreover, at that level 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 a reduction in transport costs, rent, cost work force. The advantages of territorial organization of sales 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 customers, he has 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 transition economy is a significant increase in the independence of individual parts of management structures and the creation of subsidiaries on this basis. A network of small mobile firms is being formed around large enterprises, capable of quickly adapting their applications.
Rice. 9.7.
Mixed divisional management structure
responsive to changing demand. Thanks to this, enterprises producing products are brought closer to the consumer sector, and the process of selling products is accelerated. From the production and organizational structure of many large enterprises, divisions with a full production cycle are distinguished. On the one hand, independent economic entities are created, focused on specific 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 rental relations. By periodically adjusting lease agreements, a certain coordination of the activities of newly created organizations is ensured. Retention of ownership rights for the base enterprise makes it possible to maintain and develop production system generally. Below is comparative assessment advantages and disadvantages of linear-functional and divisional organizational structures, which allows, taking into account the characteristics of specific conditions, to determine the possibilities of using one or another form organizational building (Table 9.1).
Table 9.7
Comparative characteristics of organizational management structures
|
Linear-functional |
Divisional |
|
Ensure the implementation of specialized tasks controlled through plans and budgets |
Decentralized operations of departments with centralized assessment of results and investments |
|
Most effective in a stable environment |
Most effective in a changing environment |
|
Promote the efficient production of standardized goods and services |
Suitable for conditions of interconnected diversification by product or region |
|
Provide savings on management costs |
Focused on prompt decision making |
|
Provide for specialization of functions and competence |
Create organizational conditions for an interdisciplinary approach |
|
Focused on price competition |
Operate successfully under non-price competition |
|
Designed to use existing technologies and established markets |
Focused on developing new markets and new technologies |
|
Production specialization that exceeds the capabilities of centralized planning |
Intervention senior 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 |
Quickly resolve complex cross-functional problems |
|
Vertical integration, often exceeding the full capacity of specialized units |
Diversification within the corporation or acquisition of external organizational units |
Collegial bodies
Using various types organizational structure important acquire collegial forms of work. These are committees, task forces, commissions, councils, and collegiums. Of course, these forms do not represent any distinct type of structure. They can be permanent or temporary, have different status, level of authority granted and perform different tasks in the organization. Collegial bodies are often given the authority to take certain solutions, exercise leadership (or delegate authority to exercise leadership). There is a well-known practice of forming such bodies to perform advisory functions, i.e. presenting to a manager at any level a reasoned opinion on a particular issue. Let us consider in more detail the issues of organizing their activities and the level of authority.
1. Collegial body of informational nature. At meetings of this body, contacts are made between the heads of departments. Their general leader informs the meeting participants about the current situation, about the decisions made and planned. As a result, methods for implementing solutions can be clarified. Information bodies are needed primarily at the highest levels of management. Their use at lower levels serves to improve mutual understanding, in particular between specialists (or employees of functional departments) and line managers. The activities of such a body are intended to lead to strengthening ties and improving personal relationships.
2. Collegial advisory body. Such a body (committee, expert council, etc.) may have the task of studying a problem and presenting a conclusion about it. It does not replace, but complements the activities of existing expert specialists in the organization. It is necessary to distinguish between bodies engaged in research and bodies that use the research conducted to draw up their conclusions. An advisory body may carry out its activities with the help of specialists or experts when it becomes 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 perform 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 special decisions. important decisions. For example, there are committees that make decisions on the overall policy of the organization. Such a body is headed by the highest leader of the organization, and the heads of the most important departments and experts included in it play a very active role.
4. Collegial body exercising control. In relation to managers, such an organizational link primarily performs the role of a body that gives permission to make decisions that meet certain requirements. He also monitors the implementation of these decisions. The activities of collegial bodies can cover various areas of the organization’s activities: 1) decisions related to general strategy and policy; 2) acts of management and administrative actions; 3) direct executive activities that implement decisions made.
The advantages of this organizational form are associated primarily with the collaboration of a group of people. Special mutual understanding between people is achieved in groups whose members are characterized, as a rule, by the same behavior and even specific skills (line and functional managers, 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 management apparatus is ensured. It is also significant that a collision occurs various points from the perspective of people who usually engage in different types activities, and most importantly - having unequal training and experience. In many cases, this contributes to the emergence of new ideas. In addition, collegial bodies contribute to the stability of the organization, since they enable a certain number of managers to keep abreast of the problems of related services, and also create conditions for the training of young management personnel.
Features of the internal environment of the management structure
Modern organizational structures focused on solving strategic problems of organization development
Organizations that carry out such processes as: determining the timing, volume and sequence of work, division of labor and resource provision, need to implement stable relationships between the elements of the management system. For this purpose, an organizational management structure is being developed.
Organizational structure is divided into two types: hierarchical and organic.
A hierarchical structure implies a clearly defined hierarchy, management comes from one center, a strict division of employee functions, and a clear definition of the rights and responsibilities of employees.
Let's take a closer look at the types of hierarchical structures:
1. Linear management structure
The linear structure is suitable for small organizations and for organizations operating in a stable environment. external environment.
For elimination weaknesses structures needed:
Determine the areas of competence of subordinate managers and delegate appropriate powers to them;
To relieve line managers, enter staffing unit- an assistant who is assigned part of the responsibilities;
To eliminate the problem of shifting responsibility, it is necessary to establish horizontal communication between line managers.
This type of structure is used, as a rule, in small organizations in initial period their formation.
2. Functional management structure
The functional structure is most often used for large volumes of specialized work in an enterprise.
How to eliminate structure deficiencies:
If the principle of unity of command is violated, as a rule, the responsibility of the performers decreases. This problem must be solved by introducing motivation and budgeting systems;
It is necessary to clearly define the areas of competence of functional managers, granting the right to accept independent decisions within their competencies, as well as clear planning of activities.
Linear and functional structures in their pure form are not used by any large organization in Russia or in the world.
3. Linear-functional structure
The linear-functional structure is suitable for medium and large companies. This structure helps improve the quality of horizontal communications.
This structure is effective where:
Management tasks and functions rarely change;
Mass or large-scale production occurs with a limited range;
Manufacturing is the least susceptible to the progress of science and technology;
External conditions are stable.
This structure is usually used by banks, industrial and state enterprises. It is also effective together with other structures.
To overcome the weaknesses of the linear-functional structureit is necessary to clearly define powers and responsibilities between line and functional managers.
Linear-functional system using the example of the bank OJSC AK BARS:
Source : OJSC "Ak Bars" Bank, akbars.ru
IN modern conditions Line-functional structure, as a rule, is used mainly by small and medium-sized organizations and very rarely in multinational companies. For many large companies, the divisional approach has become relevant.
4. Divisional management system
The divisional structure is suitable for organizations that have diversified production or different areas of activity.
This structure was first used by the company "General Motors." The need to implement such a structure was caused by a sharp increase in the size of the company, the complication of technological processes, as well as diversification of activities. In a rapidly changing environment, the linear-functional structure made it impossible to manage from a single center.
To smooth out the shortcomings of this structure, a clear delineation of functions for each department of the organization is necessary.
Divisional system using the example of the oil company OJSC Rosneft:
Source : OJSC NK Rosneft, rosneft.ru
Sometimes environmental conditions change so rapidly that the process of developing and making decisions slows down in hierarchical structures. For such a case when the organization is no longer able to effectively interact with environment adhocratic (organic) structures were developed.
In the second part of the article we will look at organic organizational structures.
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The functional organizational structure of management is a scheme of operation of management bodies in which each of them is assigned to perform a certain range of technological, production, design, financial or information functions. Production units subordinate to the functional body are required to comply with all its instructions.
The most common type of management structure is linear-functional. This management scheme includes linear units that perform the main work in the organization, as well as functional service units. Linear units are involved in decision-making at their level, while divisions help the manager make and develop decisions, and also inform him.
Linear-functional organizational structure: description
This management scheme is based on the mine construction method, in which specialization is carried out by functional subsystems (production, marketing, finance, development and research, personnel, etc.). Each subsystem forms its own hierarchy, which permeates the entire organization from top to bottom. The performance of each service is assessed through indicators that characterize the performance of its tasks. The entire system of rewarding and motivating employees is built accordingly. The final result (the quality and efficiency of the enterprise as a whole) fades into the background, since it is believed that all departments are working to achieve it.
disadvantages and advantages
Positive points are the clarity of the system of interaction between departments, unity of command (the manager takes control of overall management), delimitation of responsibility (everyone knows what he is responsible for), the ability to quickly respond to executive departments’ instructions from above.
The disadvantage of the structure is the absence of links that produce overall strategy work. Managers at almost all levels primarily solve operational problems rather than strategic issues. There are prerequisites for shifting responsibility and red tape when solving problems that require the interaction of several departments. Enterprise management has little flexibility and does not adapt well to change. The organization and divisions have different efficiency and quality of work. The current trend towards formality of indicators tends to create an atmosphere of disunity and fear.
The disadvantages of management in this structure lie in the large number of intermediate links that are located between employees and the decision-making manager. Top-level managers are susceptible to overload. The dependence between work results and qualifications, business and personal qualities senior management team.
Thus, we can conclude that in modern conditions the linear-functional organizational structure has more disadvantages than advantages. With this system of organization it is difficult to achieve quality work enterprises.
The linear-staff organizational structure is designed to eliminate the shortcomings of the linear scheme. It allows you to eliminate the main drawback, which is associated with the lack of links intended for This structure provides for a reduction in the workload of senior managers, it is possible to attract external experts and consultants. However, the distribution of responsibilities remains unclear.
