In this part of the lecture, we will analyze the most common and generally accepted management structure. What structure is this? It is rather a symbiosis of two organizational structures at once - linear and functional, as a result we get a linear-functional management structure! But first things first, since it did not appear immediately, but as a result of the transformation of the functional structure of enterprise management.
Concept of functional management structure
What is special about the functional structure? In the classical view, the functional structure appeared as a result of the complication and expansion of production processes. That is, the volume of products produced and the number of employees increased so much that it was no longer possible to manage as before. Those principles and approaches to management that existed at that time needed to be modified to suit new conditions. We get that, just like, the functional structure is the fruit of development processes and, first of all, production.
Historically functional organizational structure This is the third structure that has appeared after the line and headquarters. However, it is fundamentally different from the first two. If we recall the classification of management structures that we considered, then there we classified the structures according to the vertical and horizontal principles of management. Here the functional structure refers to the horizontal construction of structures, or it is characterized by the process of departmentation - the allocation of departments (departments).
The main feature of the functional structure lies in the fact that specialists or departments appear in it for the main basic functions of management, and these departments have the right to make decisions on this function, for which they are responsible.
That is, a special department is formed, for example, a supply department, it performs all functions related to supply, makes decisions on supply itself and is responsible for actions performed or not performed. This main principle the work of a functional structure as opposed to a headquarters structure.
Although the functional structure was transformed from the headquarters structure, in this situation the headquarters received the status of independent units and began to perform their functions independently. This is how functional structures appeared. In addition, the formation and development of functional structures was greatly influenced by the Administrative School of Management, and in particular by its founder Henri Fayol. Fayol was the first to talk about the division of functions not only in the organization itself, but also in the management process.
Let us schematically represent the functional management structure in the figure.
The obvious advantage of a functional structure is specialization in a certain area (function), but this structure also has a significant disadvantage. Next, we will take a closer look at the advantages and disadvantages of a functional management structure.
Advantages and disadvantages of a functional management structure
As noted above, the most important advantage of a functional structure is functional specialization, that is, the historically long-known process of fragmenting a general action into small operations, in in this case management functions. In such a situation, the execution of the action improves significantly, which is what a large organization needs. The disadvantage that the functional structure has received is the simultaneous subordination of all performers to all functional managers, as can be seen from the figure. We will present all the disadvantages and advantages in the diagram.
The main drawback that makes it difficult to use this structure in pure form- this is the absence of unity of command. As noted earlier, the management structure should be built on the principle of subordination of the performer to one immediate supervisor (unity of command); it is this principle that is violated by the functional structure. Therefore, in its pure form this structure is not used precisely because of the difficulties of coordination, when the performer does not know who exactly his immediate superior is, and what work to do first.
A way out of the situation was quickly found. To take advantage of the functional structure, it was necessary to add to it the advantages of another basic structure - linear.
Linear-functional organizational management structure and its features
Management practice very quickly made it clear that in management it is necessary to use both functional and linear principles of process management. This is how the linear-functional structure of organization management appeared. This type of structure is used most often in practice, especially in medium and small organizations. They were formed a long time ago, and, despite a number of shortcomings, they are classic and basic structures in modern management.
The basic principle of linear-functional construction is that the main production decisions are made by the line manager responsible for this area, while functional units work together with the line manager (this interaction is shown in dotted lines in the diagram), and do not participate in the direct management of production personnel, that is, all performers are subordinate to only one line manager. In such a situation, the principle of unity of command will be observed.
An example of a linear-functional structure
Thus, main feature linear-functional structure is that it makes it possible to immediately use the advantages of both linear and functional approaches to management. But the main drawback that is characteristic of this class of structures is poor flexibility. It is extremely difficult for organizations to adapt to changes in the environment when using such a structure of the management apparatus. To improve adaptation to the environment, new management structures began to appear - and. But this will be discussed in the following parts of Lecture 7.
Test
on the topic of:
Linear and functional management structures
Introduction
1 Linear management structure
2 Functional structure management
3 Linear-functional management structure
SITUATION
Bibliography
Introduction
Management structure is a set of stable connections between objects and subjects of management of an organization, implemented in specific organizational forms that ensure the integrity of management and its identity with itself, i.e. preservation of basic properties under various internal and external changes.
The management structure, which represents a certain ordering of tasks, roles, powers and responsibilities, creates the conditions for the enterprise to carry out its activities and achieve established goals.
The diversity of structures is enhanced when we take into account differences in the field of activity, in the nature and complexity of the products produced, in the size, degree of differentiation and territorial location of enterprises.
1 Linear management structure
Linear management structure (Fig. 1) is a structure in which management influences transmitted to other levels of production and management include administrative functions (organization) and procedures (decision making).
In addition to administrative functions, the manager can assume other functions necessary for the performance of work by a specific performer. Wherein Feedback information informing the manager about the progress of the work may be missing. The manager in such a structure is called linear.
Administrative functions and procedures may be delegated to key managers at lower levels of the management structure. The contractor can also transfer part of his work to a lower level and act in relation to him as a line manager.
Rice. 1. Linear management structure
The linear structure is used in small firms with homogeneous and uncomplicated technology.
Advantages of a linear structure:
Ease of construction;
Receiving consistent assignments;
Full personal responsibility for work results.
Flaws:
Effective only for small organizations;
Difficulty in coordinating production and management processes;
The need for a manager to have a breadth of knowledge and experience at the expense of specialized knowledge in individual functions.
A variation of the linear structure is the line-staff management structure, which is formed by creating specialized services (headquarters) under each line manager. For example, under a production manager, supply, assembly, packaging, transportation, etc. services are created, endowed with deliberative and executive rights.
With this type of management 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.
2. Functional management structure
Functional management structure is a structure in which management impacts are divided into linear and functional and each of these impacts is mandatory for execution. Functional connections implement a set of any general and specific management functions. The functional structure is a modernization of the linear-staff structure. The difference is that the staff of the headquarters of the functional structure is not endowed with deliberative and executive rights, but with the right of leadership and decision-making.
The functional structure is the most widespread form of organization of activities and occurs in almost all enterprises at one level or another of the structure. Creating a functional structure comes down to grouping personnel according to the broad tasks they perform (production, marketing, finance, etc.)
In this structure, the general manager and heads of departments (technical, economic, etc.) divide their influence on the performer by function. The general manager only coordinates the actions of department heads and performs a limited list of his functions (Fig. 2).
Each manager performs only part of the functions necessary for a specific performer to perform the work. At the same time, there may be no feedback informing managers about the progress of work. However, this is more of a disadvantage than an advantage. Managers in such a structure are called functional.
The contractor can also transfer part of his work to a lower level. Thus, one executive can be simultaneously subordinate to several functional managers.
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Fig.2. Functional management structure
The chain of command comes from the president (CEO) and flows 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 aims to promote quality and creativity, as well as the desire for savings due to an increase in the scale of production of goods or services.
However, maintaining interaction between different functions is a complex and often problematic task. The implementation of various functions involves different terms, goals and principles, making it difficult to coordinate and schedule activities. In addition, functional orientation is associated with a preference for standard tasks, the promotion of narrowly limited perspectives, and reporting on performance.
Advantages of a functional management structure:
Attracting more competent specialists in a specific area to management;
Efficiency in solving non-standard situations;
Rapid growth in the professionalism of functional managers.
Disadvantages of the functional structure:
Violation of the principle of unity of command;
Responsibility is impersonal;
Difficulty coordinating the activities of all departments.
A variation of the functional structure is the functional-object management structure. This is the case when the most qualified and experienced specialists are allocated in the functional divisions of the management apparatus, who, in addition to their main functional responsibilities Responsibility is assigned for the performance of all work on a particular object at a given enterprise (organization). These specialists assign work on the objects entrusted to them not only within the framework of their functions in their division, but also on all similar issues in other divisions. They interact with all employees performing work on the site, being their managers. At the same time, in relation to the performance of work on other objects, they act as executors and must follow the instructions of other specialists - those responsible for other objects.
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 on a broad international scale, simultaneously in several markets in countries with different legislation. The logic of this form is centrally coordinated specialization. It is difficult to trace the contribution of each resource element along the value chain to the final result and the overall profitability of the organization. In fact modern trend to disintegration (i.e. purchasing rather than producing components, etc.) reflects the understanding by many firms that the necessary coordination of costs and resources used affects performance.
A functional organization can fail due to misapplication because the logic of this organization is one of centralized control that does not easily adapt to product diversification.
In its pure form, the functional structure is practically not used. It is used in close, organic combination with a linear structure operating along the top-down 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.
3 Linear-functional management structure
Linear-functional structure (Fig. 3) is a structure in which management influences are divided into linear - mandatory for execution, and functional - recommendatory for execution.
In this structure, the general manager and heads of departments (technical, economic, etc.) divide their influence on performers by function. The general manager exercises linear influence on all participants in the structure, and functional managers provide technological assistance to the performers of the work performed.
The contractor can also transfer part of his work to a lower level and act in relation to him as a line or functional manager.
Every entrepreneur, when creating a company, must think about what will be inherent in his enterprise. It should be taken into account that each employee must understand in which department he works, what his tasks are and who his manager is. And the entrepreneur must monitor the results of the work not of each employee, but of those who are responsible for this or that work.
Management represents the composition, subordination and interrelation of different divisions, as well as individual officials who perform the management functions assigned to them.
They make up links and steps. A link is the functions of which are strictly defined and limited. A stage is a set of links that are at the same level in the management hierarchy.
There are several types of organizational structures. The subject of today's discussion is the linear-functional structure.
Among the advantages of such a system are the following:
Professional and business specializations are encouraged;
The manager’s responsibility for the final result of the organization’s management increases;
Effectiveness increases from work force various types;
Conditions and opportunities for career growth are created;
It is not very difficult to monitor the activities of employees of all departments.
The linear-functional structure has the following disadvantages:
The head of the enterprise bears full responsibility for making a profit;
Coordination between departments becomes more difficult;
The process of making and implementing decisions slows down;
There is no flexibility in the structure, since the basis for functioning is a set of various rules and principles.
The linear-functional management structure is a mixture of linear and which has absorbed the advantages of the first and second. It is formed according to the chess principle of specialization and construction in the management process. Linear-functional is formed according to the types of activities where the divisions of the enterprise are created. And functional units are divided into even smaller ones that perform a specific range of tasks.
The linear-functional management structure is currently the most common and is used by small and medium-sized enterprises. Basically, such firms are engaged in the production of a limited range of products and operate under stable external conditions. Large organizations use a divisional approach to management.
The linear-functional structure is based on system-forming connections. These are the vertical ones, among which a distinction is made between linear (or basic) and functional (or additional). Through the former, subordinates are managed. The manager determines what tasks will be solved and by whom specifically. Through functional units top level give instructions to subordinates.
Advantages and disadvantages.
LINEAR STRUCTURE management is characterized by a clear unity of command - each manager and each employee is subordinate to only one superior person.
R- Head of the organization;
P1, P2– heads of departments;
AND– performers
The line manager provides direct guidance to his subordinates in the form of orders, instructions, etc.
Used in small organizations (shops, canteens, etc.).
Advantages:
Unambiguous influence of the subject on the control object;
Relatively short communication channels;
Possibility for subordinates to receive consistent assignments;
High responsibility of the manager for the results of the work of the team subordinate to him;
Ensuring unity of leadership from top to bottom.
Flaws:
The manager lacks knowledge of individual management functions;
Overload of line managers and lack of time for high-quality implementation of all management functions.
FUNCTIONAL STRUCTURE management is based on the functional division of labor in the management apparatus. Therefore, instead of one manager, several specialists are appointed for certain types of work.
R- Head of the organization;
F– functional units or specialists;
AND– performers.
Flaws:
The unity of management in the organization is disrupted and the role of the line manager is reduced;
The division of power between line and functional managers makes cross-functional coordination difficult;
Responsibility is dispersed between linear and functional management;
An opportunity is created conflict situations due to contradictory instructions given.
20.Linear-functional management structure: diagram, characteristics, scope of application. Advantages and disadvantages.
The linear-functional structure is built on a combination of line management and specialized functional blocks.
P1, P2 – line managers;
Ш1, Ш2 – headquarters of specialists under line managers;
And – performers.
Advantages:
Attracting highly qualified specialists in certain functions to the management staff;
Improving the quality of decisions made;
The ability of line personnel to concentrate on the overall results of the organization.
Flaws:
Increasing number and complexity business connections in the management apparatus;
Increased costs for maintaining the development of management teams;
Lengthening the process of developing control commands;
Separation of staff employees from direct economic activities.
21. Divisional management structures: types, scheme, characteristics, scope of application. Advantages and disadvantages.
As a rule, large divisional structures are used.
Divisional structures- these are structures based on the allocation of production units (divisions-departments), granting them operational and production independence and transferring responsibility for making a profit to this level.
There are three types of divisional structures:
Grocery(departments are created by type of product (General Motors)),
Consumer oriented(divisions are formed around certain consumer groups (commercial banks)),
Regional(at the location of the company's divisions, if the company has international activities (Coca-Cola)).
Flaws:
Increased costs for management personnel;
Complexity of information connections.
The organization is managed in accordance with a certain structure. It is developed in the company taking into account the specifics of its activities. Let us next consider what a linear-functional management structure is.
General information
Production areas
The functional structure presupposes the presence of heads of departments involved directly in the production of products (rendering services). In most cases, they are called production site foremen. They not only provide leadership, but also:
Loading and unloading units
Their managers organize accounting of containers according to the rules and analyze the results of its processing. They also develop measures to eliminate downtime. The responsibilities of supervisors include:
- Ensuring fulfillment of shipping plans.
- Reception and transmission of notifications about the upcoming supply of containers, their readiness for cleaning, etc.
Chief Engineer
He heads the company's technical divisions. Its tasks include ensuring the proper condition of equipment and organizing a system of scheduled preventive maintenance. The specialist may be directly subordinate to:
- OT Engineer.
- Chief Power Engineer.
- Warehouse Manager.
- Mechanic.
Accounting
Any functional structure of a company requires the presence of this department. Management is carried out by the chief accountant. He, in turn, reports to the director of the company. The responsibilities of the chief accountant are as follows:
Economic department
The tasks of this unit include compiling long-term plans(quarterly and annual) financial and economic activities, development of projects on the volume of work and wages for production areas. The head of the department is a senior economist. His responsibilities include:
- Analysis of previous prices and establishment of new prices for the reception, storage, and shipment of raw materials and products.
- Carrying out timekeeping, developing local production and time standards, familiarizing workers with them.
- Monitoring compliance with established indicators, etc.
HR department
This division maintains records of the company's personnel, its divisions, and approved documentation. The department is headed by a personnel inspector. He is obliged:
- Process the hiring, transfer, and dismissal of employees in accordance with the Labor Code, instructions, regulations and orders of the director of the company.
- Study the movement and reasons for personnel turnover, participate in the development of measures to stabilize the staff.
- Monitor the implementation of labor discipline and compliance with the company’s internal regulations, etc.
System Analysis
The functional structure cannot remain unchanged during constant economic transformations. In this regard, the system requires some adjustments. Hierarchical management organization is effective in large companies where it is necessary to ensure clear and coordinated work large state employees carrying out activities to achieve a common goal of the enterprise. Such a system allows you to mobilize the energy of people and cooperate their labor to implement complex projects in large-scale and mass production. The functional structure ensures ease of administration and consistency of actions.
