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.
Divisional structures are structures based on the allocation of large autonomous production and economic units (departments, divisions) and the corresponding levels of management, granting these units operational and production independence and transferring responsibility for making a profit to this level.
Divisional (departmental) management structures are the most advanced type of hierarchical type organizational structures.
Divisional structures are characterized by full responsibility of department heads for the results of the activities of the units they head. Due to this the most important place non-managers are involved in the management of companies with a divisional structure functional units, and managers heading production departments.
The structuring of a company into departments (divisions) is carried out, as a rule, according to one of three principles: by product - taking into account the characteristics of the products or services provided, depending on the focus on a specific consumer; and by regional - depending on the territories served. In this regard, three types of divisional structures are distinguished:
· divisional-productive structures;
· consumer-oriented organizational structures;
· divisional-regional structures.
With a divisional product structure, the authority to manage the production and sales of any product or service is transferred to one manager, who is responsible for this type of product. Heads of functional services (production, procurement, technical, accounting, marketing, etc.) must report to the manager for this product.
Companies with this structure are able to respond more quickly to changes in competition, technology and customer demand. Activities for the production of a certain type of product are under the leadership of one person, coordination of work is improved.
Possible disadvantage product structure - increased costs due to duplication of the same types of work for different types products. Each product department has its own functional divisions.
When creating consumer-oriented organizational structures, divisions are grouped around certain consumer groups (for example, the army and civilian industries, industrial, technical and cultural products). The goal of such an organizational structure is to satisfy the needs of specific customers as well as a company that serves just one group of them does.
Figure 1. Product divisional structure
Figure 2. Regional divisional structure
If the company's activities are spread over several regions in which the use of different strategies is required, then it is advisable to form a divisional management structure on a territorial basis, i.e., use a divisional-regional structure.
All activities of the company in a certain region in this case must be subordinate to the appropriate manager, who is responsible for it to the highest governing body of the company. The divisional-regional structure facilitates the solution of problems associated with local customs, peculiarities of legislation and the socio-economic environment of the region. Territorial division creates conditions for training management personnel of departments (divisions) directly on site.
We can distinguish the following most common types of international divisional structures, the construction of which is based on a global approach:
1. Globally oriented product (product) structure (Worldwide Product Structure), based on a divisional structure with divisions based on product characteristics, each of which independently operates on the entire world market. This structure can be used by companies with highly diversified products, products that differ significantly in their production technology, marketing methods, distribution channels, etc. It is used primarily by those companies for which differences between types of products are more important than differences between geographic regions in which these products are sold. This type of structure contributes to the international orientation of the company, however, it is characterized (although like any other type of divisional structure) by weakening coordination between the individual divisions of the company; increased duplication of their activities.
Figure 3. Globally oriented product (commodity) structure
2. Globally oriented regional structure (Worldwide Regional Structure), also based on a divisional structure, but using the geographical principle of construction. at the same time, the national market is often considered only as one of the regional divisions. It is most appropriate to use this type of structure by companies for which regional differences are more important than differences in products. Often, globally oriented regional organizational structures are used in industries with technologically slowly changing products (automobiles, drinks, cosmetics, food, petroleum products). The advantages of such a structure include close relationships with geographic regions and high coordination of activities within them, while the disadvantages include weak coordination of the work of individual departments and duplication of their activities.
Figure 4. Globally oriented regional structure
3. Mixed (hybrid) structure (Mixed Structure, Mixed Overlay), where, along with an emphasis on a specific product ( geographical region, functions) built-in structural connections of territorial and functional (product and functional or territorial and product) type. This type of structure arose due to the fact that each of the above structures can be noted to have strong and weak sides, there is not a single organizational structure that could be considered ideal. The organizational management structure must correspond to the specific operating conditions of the company, and for large objects they are quite complex and varied and no organizational structure in the world can be adequate to them. pure form. The mixed structure is currently very popular among American multinational corporations (especially those with highly diversified activities).
Test
on the topic of:
Linear and functional management structures
Introduction
1 Linear management structure
2 Functional management structure
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 line structure is used in small firms with a homogeneous and simple technology.
Advantages of a linear structure:
Ease of construction;
Receiving consistent assignments;
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.
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 stimulate quality and creativity, as well as the pursuit of economies of scale in the 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:
Fast growth 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.
Advantages of a linear-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;
Receiving consistent assignments and orders;
Full personal responsibility for work results.
Disadvantages of a linear-functional management structure:
Difficulty coordinating the activities of all departments;
Heavy workload of the general manager and his staff on operational issues of production and management.
Rice. 3. Linear-functional management structure
The ongoing process of decentralization of management within the framework of a linear-functional structure leads to the fact that rights and responsibilities are more deeply divided between different bodies leading technical developments, purchasing raw materials, production, sales, etc. This process is most typical for enterprises where large quantities of homogeneous products are produced sustainably and where economies of scale are significant. One of the conditions for decentralization of the structure can be a situation when the market is a single whole and is characterized by a high degree of concentration of consumption.
At the same time, the expanding 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. As the size of corporations grows, the range of manufactured products and markets for their sales expand, 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 over priorities, decision-making is delayed, communication lines are lengthened, and the implementation of control functions becomes difficult.
Departure from use strictly functional diagrams management of corporations in favor of a divisional structure organized by departments is quite clearly visible as the degree of diversification of production increases.
Test
Is it true that an increase in the concentration of production contributes to:
1) the optimal combination of large, medium and small enterprises;
2) development of monopolism;
3) reducing product shortages;
4) better use basic and revolving funds, work force.
Answer: 1 – no, each industry has its own optimal combination of large, medium and small enterprises; 2 – yes; 3 – no; 4 – yes.
Situation
What documents must be submitted for state registration enterprises?
1. Business plan for the first year of activity.
2. Certificate from the Ministry of Justice of the Russian Federation.
3. Application for registration.
5. Certificate from the tax office about the income of the founders.
6. Founders' agreement.
7. Document confirming payment of at least 50% authorized capital.
8. A document confirming payment of the authorized capital in the amount of 150 times the minimum wage per month;
9. Certificate of payment of state duty.
Answer: 1, 3, 4, 6, 7, 9.
Bibliography
1. Valuev S.A., Ignatieva A.V. Organizational management. – M.: Oil and Gas, 1993.
2. Vesnin V.R. Management for everyone. – M.: Lawyer, 1994.
3. Goncharov V.V. Guide for senior management personnel. – M.: MNIIPU, 1996.
4. Milner B.Z. Organization theory. – M.: INFRA-M, 1999.
5. Oganesyan A. Enterprise Economics (lecture notes). – M.: PRIOR Publishing House, 2001.
6. Rumyantseva Z.P., Solomatin N.A., Akberdin R.Z. Organisation management. – M.: INFRA-M, 1995.
7. Khodeev F.P. Management. – Rostov n/d: Phoenix Publishing House, 2002.
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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 a functional organizational management structure is used. 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.
Organizational process is the process of creating the organizational structure of an enterprise.
The organizational process consists of the following stages:
- dividing the organization into divisions according to strategies;
- relationships of powers.
Delegation is the transfer of tasks and powers to a person who assumes responsibility for their implementation. If the manager has not delegated the task, then he must complete it himself (M.P. Follett). If the company grows, the entrepreneur may not be able to cope with delegation.
Responsibility— obligation to carry out existing tasks and be responsible for their satisfactory resolution. Responsibility cannot be delegated. The amount of responsibility is the reason for high salaries for managers.
Authority- limited right to use the organization's resources and direct the efforts of its employees to perform certain tasks. Authority is delegated to the position, not the individual. The limits of authority are limitations.
is the real ability to act. If power is what one can actually do, then authority is the right to do.
Line and staff powers
Linear authority is transferred directly from a superior to a subordinate and then to another subordinate. A hierarchy of management levels is created, forming its stepwise nature, i.e. scalar chain.
Staff powers are an advisory, personal apparatus (presidential administration, secretariat). There is no downward chain of command at headquarters. Great power and authority are concentrated in headquarters.
Building organizations
The manager transfers his rights and powers. Structure development is usually done from the top down.
Stages of organizational design:- divide the organization horizontally into broad blocks;
- establish the balance of powers for positions;
- define job responsibilities.
An example of constructing a management structure is the bureaucratic model of an organization according to M. Weber.
Organizational structure of the enterprise
On the ability of the enterprise to adapt to changes external environment depends on how the enterprise is organized and how the management structure is built. The organizational structure of an enterprise is a set of links (structural divisions) and connections between them.
The choice of organizational structure depends on factors such as:- organizational and legal form of the enterprise;
- field of activity (type of products, their range and range);
- scale of the enterprise (production volume, number of personnel);
- markets that the enterprise enters in the process of economic activity;
- technologies used;
- information flows inside and outside the company;
- degree of relative resource endowment, etc.
- organizations with ;
- divisions of the organization;
- organizations with people.
An important role here is played by the structure of the organization through which and through which this interaction is carried out. Company structure- this is the composition and relationship of its internal links and departments.
Organizational management structures
Different organizations are characterized by different kinds management structures. However, there are usually several universal species organizational management structures, such as linear, linear-staff, functional, linear-functional, matrix. Sometimes, within a single company (usually a large business), a separation occurs separate divisions, so-called departmentalization. Then the created structure will be divisional. It must be remembered that the choice of management structure depends on strategic plans organizations.
The organizational structure regulates:- division of tasks into departments and divisions;
- their competence in solving certain problems;
- the general interaction of these elements.
Thus, the company is created as a hierarchical structure.
Basic laws of rational organization:- ordering tasks according to the most important points process;
- bringing management tasks into line with the principles of competence and responsibility, coordination of the “solution field” and available information, the ability of competent functional units to take on new tasks);
- mandatory distribution of responsibility (not for the area, but for the “process”);
- short control paths;
- balance of stability and flexibility;
- ability for goal-oriented self-organization and activity;
- the desirability of stability of cyclically repeated actions.
Linear structure
Let's consider a linear organizational structure. It is characterized by verticality: senior leader- line manager (divisions) - performers. Available only vertical connections. In simple organizations there are no separate functional divisions. This structure is built without highlighting functions.
Advantages: simplicity, specificity of tasks and performers.
Flaws: high requirements for the qualifications of managers and high workload for managers. The linear structure is used and effective in small enterprises with simple technology and minimal specialization.
Line-staff organizational structure
As you grow enterprises, as a rule, linear structure converted to line-staff. It is similar to the previous one, but control is concentrated in headquarters. A group of workers appears who do not directly give orders to the performers, but carry out consulting work and prepare management decisions.
Functional organizational structure
With the further complication of production, the need arises for the specialization of workers, sections, departments of workshops, etc., a functional management structure is being formed. Work is distributed according to functions.
With a functional structure, the organization is divided into elements, each of which has a specific function and task. It is typical for organizations with a small nomenclature and stable external conditions. Here there is a vertical: manager - functional managers (production, marketing, finance) - performers. There are vertical and inter-level connections. Disadvantage: the manager’s functions are blurred.
Advantages: deepening specialization, improving quality management decisions; ability to manage multi-purpose and multi-disciplinary activities.
Flaws: lack of flexibility; poor coordination of the actions of functional departments; low speed of making management decisions; lack of responsibility of functional managers for the final result of the enterprise.
Linear-functional organizational structure
With a linear-functional management structure, the main connections are linear, the complementary ones are functional.
Divisional organizational structure
In large companies, to eliminate the shortcomings of functional management structures, the so-called divisional management structure is used. Responsibilities are distributed not by function, but by product or region. In turn, divisional departments create their own units for supply, production, sales, etc. In this case, prerequisites arise for relieving senior managers by freeing them from solving current problems. Decentralized control system ensures high efficiency within individual divisions.
Flaws: increased costs for management personnel; complexity of information connections.
The divisional management structure is built on the basis of the allocation of divisions, or divisions. This type is currently used by most organizations, especially large corporations, since it is impossible to squeeze the activities of a large company into 3-4 main departments, as in a functional structure. However, a long chain of commands can lead to uncontrollability. It is also created in large corporations.
- grocery.Departments are created by type of product. Characterized by polycentricity. Such structures have been created at General Motors, General Foods, and partly at Russian Aluminum. The authority for the production and marketing of this product is transferred to one manager. The disadvantage is duplication of functions. This structure is effective for developing new types of products. There are vertical and horizontal connections;
- regional structure. Departments are created at the location of company divisions. In particular, if the company has international activities. For example, Coca-Cola, Sberbank. Effective for geographical expansion of market areas;
- customer-oriented organizational structure. Divisions are formed around specific consumer groups. For example, commercial banks, institutes (advanced training, second higher education). Effective in meeting demand.
Matrix organizational structure
In connection with the need to accelerate the pace of product renewal, program-targeted management structures, called matrix ones, arose. The essence of matrix structures is that temporary working groups are created in existing structures, while resources and employees of other departments are transferred to the group leader in double subordination.
With a matrix management structure, project groups (temporary) are formed to implement targeted projects and programs. These groups find themselves in double subordination and are created temporarily. This achieves flexibility in the distribution of personnel and effective implementation of projects. Disadvantages: complexity of the structure, occurrence of conflicts. Examples include aerospace enterprises and telecommunications companies carrying out large projects for customers.
Advantages: flexibility, acceleration of innovation, personal responsibility of the project manager for work results.
Flaws: the presence of double subordination, conflicts due to double subordination, the complexity of information connections.
Corporate or considered as a special system of relationships between people in the process of their implementation joint activities. Corporations as a social type of organization are closed groups of people with limited access, maximum centralization, authoritarian leadership, opposing themselves to other social communities based on their narrow corporate interests. Thanks to the pooling of resources and, first of all, human ones, a corporation as a form of organizing joint activities of people represents and provides the opportunity for the very existence and reproduction of one or another social group. However, the unification of people into corporations occurs through their division according to social, professional, caste and other criteria.
