Functional organizational structure of management. Features of the choice of the organizational structure of enterprise management Organizational management chart

Forms and methods of implementing the principles of formation of organizational structures make it possible to distinguish several types of them. So, according to the level (degree) of differentiation and integration of management functions, two classes of structures are distinguished:

• mechanistic, or bureaucratic, pyramidal, based on the centralist type of integration;
• organic, or adaptive, multidimensional, based on a combination of centralist and free types of integration.

Mechanistic (bureaucratic) pyramidal structures

Sustainability and rationalism were the priority parameters for the formation of bureaucratic structures for managing organizations already at the beginning of the 20th century. The concept of bureaucracy, formulated then by the German sociologist Max Weber, contains the following characteristics of a rational structure:

• a clear division of labor, which leads to the emergence of highly qualified specialists in each position;
• hierarchy of management levels, in which each lower level is controlled by a higher one and is subordinate to it;
• the presence of an interconnected system of generalized formal rules and standards, ensuring the uniformity of the performance by employees of their duties and the coordination of various tasks;
• formal impersonality of performance of official duties by officials;
• recruitment in strict accordance with qualification requirements; protection of employees from arbitrary layoffs.

Pyramid bureaucratic structures include: linear, functional, linear-functional, linear-staff, divisional organizational structures.

Linear organizational structure of management

The linear structure implements the principle of unity of command and centralism, provides for the performance of all management functions by one leader, subordination to him on the rights of unity of command of all lower divisions (Fig. 11.1).

This is one of the simplest organizational management structures. In linear structures, a hierarchy is clearly manifested: at the head of each structural unit there is a head endowed with all powers, who exercises sole management of subordinate employees and concentrates all management functions in his hands.

With linear management, each link and each subordinate has one leader, through whom all control commands pass through one channel at a time. In this case, management links are responsible for the results of all activities of managed objects. We are talking about the allocation of managers per object, each of which performs all types of work, develops and makes decisions related to the management of this object.

Since in a linear management structure decisions are passed down the chain from top to bottom, and the head of the lower level of management is subordinate to the head of a higher level above him, a kind of hierarchy of heads of this particular organization is formed (for example, section head, head of department, store director, site foreman, engineer , head of the shop, director of the enterprise). In this case, the principle of unity of command applies, the essence of which is that subordinates carry out the orders of only one leader. In a linear management structure, each subordinate has his own boss, and each boss has several subordinates. Such a structure functions in small organizations, and in large ones - at the lowest level of management (section, brigade, etc.).

The linear organizational structure of management has its advantages and disadvantages (Table 11.1).

Table 11.1

Advantages and disadvantages of a linear management structure

Advantages

disadvantages

Unity and clarity of command. Consistency of actions of performers. Ease of management (one communication channel). Clearly defined responsibility. Efficiency in decision making. Personal responsibility of the head for the final results of the activities of his unit.

High demands on the leader, who must be comprehensively prepared in order to provide effective leadership in all management functions. Lack of links for planning and preparation of decisions. Information overload of medium levels due to many contacts with subordinate and higher organizations. Difficult communication between units of the same level. The concentration of power at the top level of management.

In the functional structures, functional units are created, endowed with authority and responsibility for the results of their activities. Linear links differ from functional ones by the integration of object management functions, a set of powers and responsibilities. The bottom line is that the performance of certain functions on specific issues is assigned to specialists, i.e. each management body (or executor) is specialized in the performance of certain types of management activities. In an organization, as a rule, specialists of the same profile are combined into specialized structural units (departments), for example, a planning department, accounting, etc. Thus, the overall task of managing the organization is divided, starting from the middle level, according to the functional criterion. Hence the name - functional management structure (Fig. 11.2). Instead of universal managers who have to understand and perform all management functions, there is a staff of specialists with high competence in their field and responsible for a certain area (for example, planning and forecasting).

The functional structure implements the principle of separation and consolidation of management functions between structural divisions, provides for the subordination of each lower-level linear division to several higher-level managers who implement management functions. The advantages and disadvantages of this structure are presented in Table. 11.2.

Table 11.2

Advantages and disadvantages of the functional management structure

Advantages

disadvantages

High competence of specialists responsible for the implementation of functions (increasing professionalism). Exemption of line managers from solving some special issues. Standardization, formalization and programming of management processes and operations. Elimination of duplication and parallelism in the performance of managerial functions. Reducing the need for generalists. Centralization of strategic decisions and decentralization of operational ones.

Excessive interest in the implementation of the goals and objectives of their units. Difficulties in maintaining constant relationships between different functional units. Emergence of tendencies of excessive centralization. Duration of decision-making procedures. Relatively frozen organizational form, with difficulty responding to changes. The complexity of the division of power (multiplicity of subordination).

Experts point to a close relationship between the size of the firm and the organizational structure of management. The expansion of the size of the enterprise, the complication of internal relationships create conditions, and also necessitate the adoption of comprehensive decisions aimed at restructuring the organization of intra-company management, an increase in the size of the company leads to a deepening of structural differentiation (branches, management levels, organizational units).

In turn, this leads to an increase in administrative and management costs, as well as costs associated with coordination, but does not reduce the advantage of homogeneity of large firms, which is due to the fact that these firms are managed from a single center. However, the structural differentiation inherent in large firms requires the use of indirect (economic) methods of management and coordination of the activities of various organizational units.

Types of committees

There is no doubt about the advantage of using committees in such work, where coordination of actions of management units, consultation in decision-making, determination of powers and responsibilities, and development of a work schedule are required.

New types of organizational structures

Currently, such types of structures are developing as network and virtual organizations, organizations with "internal" markets, multidimensional organizations, market-oriented organizations, entrepreneurial organizations, participatory, adhocracy, intellectual, learning organizations, circular corporations, etc.

A network structure means that an organization disaggregates its core functions (manufacturing, sales, finance, research and development) between individual contracting companies brokered by a small parent organization. The organizational chart of a hypothetical network organization is shown in fig. 11.10.

Network organizations differ from organizations of other types in a number of ways. First, network organizations rely more on market mechanisms than on administrative forms of resource management. Second, many of the networks that have recently been developed involve a more active and motivated role for participants. Thirdly, in an increasing number of industries, networks are an association of organizations based on cooperation and mutual ownership of shares by group members - manufacturers, suppliers, trading and financial companies.

The so-called virtual organization or structure is closely related to the network structure. Unlike traditional mergers and acquisitions, partners in virtual organizations share costs, use each other's production experience and access to international markets.

The hallmarks of networked virtual organizations of the future can be summarized as follows:

1. the use of information technology to establish strong contacts;
2. joining forces to realize new opportunities;
3. lack of traditional boundaries - with close cooperation between manufacturers, suppliers, customers, it is difficult to determine where one company begins and another ends;
4. the main advantages and disadvantages of such organizations are given in Table. 11.7;
5. trust - partners share a sense of "common destiny", realizing that the fate of each of them depends on the other;
6. Excellence – Since each partner brings their “core competencies” to the union, it is possible to create an organization that is modern in every way.

Table 11.7

The main advantages and disadvantages of the network structure of the organization

Advantages	disadvantages
Competitiveness at the global level. Flexible use of labor force. High adaptability to market requirements. Reducing the number of hierarchy levels (up to 2-3 levels) and, accordingly, the need for managerial personnel.	Lack of direct control over the activities of the company. Possibility of unwanted loss of group members (if the subcontractor retires and his company goes bankrupt). Low employee loyalty.

Multidimensional organization. This term was first used in 1974 by W. Goggin when describing the structure of Dow Corning Corporation. Multidimensional organizations are an alternative to the traditional type of organizational structures. As we know, in traditional organizational structures, the allocation of organizational units occurs, as a rule, according to one of the following criteria:

• functional (finance, production, marketing);
• grocery (for example, factories or production units that produce various goods and services);
• market (say, by regional principle or by type of consumer).

Depending on the specifics of the activity, one or another criterion prevails in the construction of the organizational structure. Over time, under the influence of external changes and changes in the company itself (its size, scale of activities, other internal factors), the very organizational structure of the company and the prevailing principle of division divisions may change. For example, with access to regional markets, the traditional linear-functional structure can be transformed into a regional divisional one. At the same time, reorganization is a rather lengthy and complicated process.

In a dynamic external environment, the company must be able to respond instantly to changes, so a structure is required that would not need to be rebuilt. Such a structure is a multidimensional organization.

Multidimensional organizations are organizations in which structural units simultaneously perform several functions (as if in several dimensions) (Fig. 11.11), for example:

• provide their production activities with the necessary resources;
• produce a specific type of product or service for a specific consumer or market;
• ensure the sale (distribution) of their products and serve a specific consumer.

The basis of a multidimensional organization is an autonomous working group (subdivision) that implements all three functions: supply, production, distribution.

Such a group may be a "profit center". Sometimes these can be independent companies.

Units are easily included in the organizational structure and can leave it, their viability depends on the ability to produce goods and services that are in demand. Product or service-oriented divisions pay internal and external suppliers on a contractual basis. Functional divisions (production, warehouse, personnel, accounting) provide services mainly to other divisions of the company, being suppliers for them. Thus, there is an internal market within the organization. Divisions respond flexibly to changing needs of internal and external customers. Consumers automatically control their suppliers. At the same time, the performance of the unit does not depend on the performance of another unit, which facilitates the control and evaluation of the unit's performance.

Features of multidimensional organizations are as follows:

• departmental budgets are developed by the departments themselves, the company invests in them or gives loans;
• in multidimensional organizations there is no dual subordination, as in a two-dimensional matrix model, the leadership of the group is one;
• many divisions within a multidimensional organization can also be multidimensional. Divisions can also be multidimensional, even if the organization as a whole is not multidimensional (for example, a regional branch of a large corporation may have a multidimensional structure, while the corporation as a whole is a divisional structure);
• there is no need to carry out any reorganization of the organizational structure as a whole and the relationship of autonomous groups, units can simply be created, eliminated or modified;
• each division of the organization can be completely autonomous, engaging in both recruitment and sales of finished products, etc .;
• the main indicator of the effectiveness of the work of autonomous groups is the profit received; this simplifies the analysis and control over the activities of groups, reduces bureaucratization, and the management system works more efficiently.

The main advantages and disadvantages of multidimensional organizations are given in Table. 11.8.

Table 11.8

Key Advantages and Disadvantages of Multidimensional Organization

Advantages	disadvantages
Flexibility and adaptability to changes in the external environment. Reduction of bureaucracy and simplification of the management system. Focus on ends, not means. The combination of broad autonomy of departments using the synergy effect at the organization level.	In itself, the multidimensionality of the structure does not ensure the efficiency of the work of departments. tendency towards anarchy. Competition for resources within the organization. Lack of direct control over units. Difficulties in the implementation of strategic projects.

Circle organization. The basic principle of the circular organization is the democratic hierarchy. Leaders are not commanders, but act more like leaders. Unlike the hierarchical structure of traditional organizations, a circular organization has such features as the lack of undivided authority of leaders, the possibility of participation of each member of the organization in management, collective decision-making by the management of each member of the organization. These principles are implemented through the features of the structure of the circular organization, the main of which is that a council is formed around each leader (Fig. 11.12).

Each council, in addition to the head of the unit, includes his subordinates, as well as third-party representatives - heads of other structural units, external clients and consumers, public representatives. Participation in the council is mandatory for managers, but is voluntary for subordinates.

virtual organization. The emergence of the concept of a virtual organization is associated with the publication in 1992 of the monograph "Virtual Corporation" by W. Davidow and M. Malone.

A virtual organization is a network that includes the union of human, financial, material, organizational, technological and other resources of various enterprises and their integration using computer networks. This allows you to create a flexible and dynamic organizational system, the most adapted to the rapid creation of a new product and its introduction to the market. A virtual organization does not have a geographical center; the functioning of its divisions is coordinated with the help of modern information technologies and telecommunications.

The development of information technology has made it possible to make the physical presence of managers in the workplace unnecessary. Virtual associations are grouped according to the design principle, i.e. on a temporary basis.

as the need arises to create a certain product, implement a project, make a profit. The concept of a virtual organization creates fundamentally new business opportunities and is widely used in the 21st century.

An organization with an "internal market". The evolution of organizational structures is gradually evolving from hierarchical bureaucratic structures to matrix and project structures, and in recent decades to decentralized networks and business units.

The concept of "internal markets" is in stark contrast to the hierarchical structure. On the one hand, it allows you to use the potential of entrepreneurship within the organization, on the other hand, it has the disadvantages of market relations.

The basic principle of such organizations is the broad autonomy of departments (both linear and functional). Divisions are viewed as autonomous "internal businesses" that buy and sell goods and services and engage in intra- and inter-firm communications.

We list the principles of formation and functioning of organizations with "internal markets":

1. Transformation of the hierarchy into internal business units. All divisions are transformed into autonomous "internal enterprises", becoming responsible for the results of activities.

2. Creation of economic infrastructure, including common systems of accountability, communications and incentives.

3. Purposeful stimulation of synergy.

4. All departments are accountable for results, creative entrepreneurship is encouraged. Each division is treated as a small separate company that independently manages its activities and manages resources. Divisions are given the freedom to conduct business operations within and outside the organization.

5. Auxiliary functional divisions are commercial centers that sell their services to both other divisions of the firm and external customers.

So, considering the development trends of organizations and organizational structures, it can be noted that a modern organization is:

• market oriented organization. These are organic, rapidly adaptable divisional or matrix organizations in which all of their parts (R&D, manufacturing, human resources, marketing, sourcing, sales, finance, service) are clustered around a market or markets. These are organizations "driven by the market";
• entrepreneurial organization, i.e. an organization more focused on growth and on available opportunities and achievements than on controlled resources;
• participatory organization - an organization that maximizes the participation of employees in management;
• adhocracy organization - an organization that uses a high degree of freedom in the actions of employees, their competence and ability to independently solve emerging problems. This is an organic structure of a matrix, project, network type, with a predominance of informal horizontal connections. Often the structure of the organization is completely absent, the hierarchical structure is constantly changing, vertical and horizontal connections are predominantly informal;

An analysis of the experience of building organizational structures shows that the formation of management units is significantly influenced by the external and internal environment of the organization. This is the main reason for the impossibility of applying a single model of the management structure for all organizations. In addition, this impossibility is due to the specific features of a particular organization. The creation of a modern effective management structure should be based on scientific methods and principles for building organizational structures.

The main characteristic feature of the new systems of intra-company management should be: orientation to the long term; conducting fundamental research; diversification of operations; innovative activity; maximum use of the creative activity of the staff. Decentralization, reduction of levels in the administrative apparatus, promotion of employees and their payment depending on real results will become the main directions of changes in the administrative apparatus.

The process of modification of organizational management structures is developing in a number of specific areas. The main ones are the following.

1. Implementation of decentralization of production and marketing operations. To this end, within the largest companies, semi-autonomous or autonomous branches have already been created or are being created, fully responsible for profit and loss. These departments are entrusted with full responsibility for the organization of production and marketing activities. Each department fully finances its activities, enters into partnerships with any organizations on a commercial basis.

2. Innovative expansion, search for new markets and diversification of operations. This direction is implemented through the creation of innovative companies within the framework of large companies focused on the production and independent promotion of new products and technologies on the markets and operating on the principles of "risk financing". The widespread practice of large companies is the creation of small enterprises in the most promising areas, aimed at gaining a strong position in the market in the shortest possible time.

3. Debureaucratization, constant increase in the creative production efficiency of the personnel. To this end, a wide variety of measures are being taken, including the distribution of shares among the staff and the formation of enterprises collectively owned by their employees.

In modern conditions, not only fundamentally new forms of organization for our country are required, not only radically different methods of management, but also transitional modes of activity, a gradual transformation of one structure into another. In order to comprehensively take into account both the internal characteristics of organizations and dynamically changing external circumstances, as well as emerging progressive trends, it is necessary to use a systematic approach to the formation and reorganization of enterprises.

The systematic approach to the formation of the organizational structure is manifested in the following:

• do not lose sight of any of the management tasks, without which the implementation of the goals will be incomplete;
• to identify and interconnect, in relation to these tasks, a system of functions, rights and responsibilities along the vertical of management;
• explore and institutionalize all connections and relationships along the horizontal of management, i.e. to coordinate the activities of different links and management bodies in the performance of common current tasks and the implementation of promising cross-functional programs;
• provide an organic combination of vertical and horizontal management, meaning finding the optimal ratio of centralization and decentralization in management for the given conditions.

All this requires a carefully developed step-by-step procedure for designing structures, a detailed analysis and definition of a system of goals, a thoughtful selection of organizational units and forms of their coordination, and the development of relevant documents.

The organizational structure of any enterprise has its own characteristics. A clear structure shows which areas of work are duplicated and which are left unattended. This helps to optimize work, reduce costs, increase the efficiency of production costs. See what types of organizational structures are, how they differ, what are their strengths and weaknesses.

The organizational structure of an enterprise is a document that schematically reflects the composition and hierarchy of departments. It gives an idea of ​​the enterprise itself, allows you to see its work from the inside and trace the relationship between employees, departments, areas and management, their responsibilities, areas of competence, rights and obligations.

Creation goals:

1. Coordination of management, determination of superiors and subordinates, managers and performers.
2. Distribution of rights and responsibilities for representatives of all levels of the organization.

Types of enterprise structures

Informal - often has no description. It is formed spontaneously on the basis of personal preferences, taking into account traditions and unwritten rules in the course of interactions within the team. The connections built in the informal system are often more rigid than in the formal one; it is much more difficult to change or transform these connections.

In the formal hierarchy and relationships within the team are prescribed in the form of legal requirements, taking into account the goals, norms and standards of production, and are also maximally impersonal.

There is also a division into mechanistic and organic company structures. The mechanistic one provides for a rigid hierarchy, the predominance of vertical ties, many horizontal divisions, a directive method of management, a single leading center that makes almost all managerial decisions individually. In general, this is a rather complicated scheme, communications between participants are regulated and limited, mainly, by orders and instructions.

The organic is distinguished by an extensive communication network between a small number of levels, the absence of a single control center, moreover, the control is very flexible and quickly adapts to changing circumstances. The partnership style of communication and consensus decision-making prevail here. A significant number of decisions at the lowest level can be made independently. This is what an ideal democratic society looks like.

The vast majority of industrial companies use the following formalized mechanistic organizational structures.

Linear

It assumes a strict hierarchy and horizontal subordination of the lower to the higher. The leader alone makes decisions and manages subordinates. In general, the organization repeats the production hierarchy of the company, the division takes place taking into account the specifics of production. It is mainly used by small firms producing simple products.

How to analyze the organizational structure and make sure that it corresponds to the real state of affairs

If the company has already described the organizational structure, you need to make sure that it is not outdated and shows how orders are actually given, decisions are made and responsibilities are distributed in the company. It happens that the business is developing dynamically, while the management does not pay attention to the formalization of the management system, the organizational structure may “forget” to include positions, entire services, or even recently acquired business areas. Only when they begin to form a hierarchy of centers of financial responsibility, they suddenly remember that “right there we still have a branch in Samara!”.

Make sure that the organizational structure reflects the roles and tasks of significant job units. If there is no clear distribution of functions among positions, then the structure itself may be useless. .

It repeats the linear one, but the chief has an additional headquarters for collecting and analyzing information, developing managerial decisions, and planning. Representatives of the headquarters do not make decisions, but only provide information and analytical support for the activities of the leader, removing part of the load from him.

Functional organizational structure of the enterprise

Departments are formed in the company - financial, marketing, production, etc. Each department has its own head. Each department performs its function in the work of the company. This division allows you to get functional managers-managers who specialize in their area. The functional organizational structure of the company is effective in mass production or service, where there is no need for operational management and constant development of new solutions.

Advantages

disadvantages

functional managers are highly competent in their area of ​​influence, due to which they perform tasks better than generalists; line managers can focus on solving operational problems; you can invite third-party experts to consult on individual areas of work

decision-making time increases; communications between functional divisions are deteriorating, which leads to a struggle for resources within the company; the narrow specialization of functional managers complicates their transition to the highest level of managers; the performer in his work must be guided by the instructions of both his head of the department and the functional manager. This reduces the responsibility of the performer and leads to inconsistency or duplication of orders.

Linear construction allows you to strictly manage the company, and functional managers take on the task of setting work standards through instructions, schedules and regulations. Typically, functional managers do not give orders, but deal with the development of issues related to the launch of new products.

Advantages	disadvantages
maintains a vertical relationship between the leader and the subordinate; line managers are focused on solving operational management issues; functional managers focus on planning, financial and logistics issues; this separation allows to increase the productivity and quality of the work of managers	the leading leader is forced to simultaneously solve both strategic and operational tasks; communications are built vertically, which worsens the interaction between departments at the horizontal level; competition between divisions

The company is divided into production departments according to the directions, depending on the selected criterion. This may be a territorial, product, consumer or other principle. The formed division is distinguished by great independence, within it the functional managers report to the head of the division, who reports to the head office. Production issues are decided by the head of the division, the head office is engaged in strategic planning, the development of new products, and research.

Advantages	disadvantages
division leaders receive greater responsibility and freedom of action; this approach simplifies the training of senior managers; the division is more mobile and dynamic, capable of responding faster to consumer needs; closer communication between performers and the head of one division	weak communication between the division and the head office can lead to a weakening of control and losses; poor communication within the division between departments; the ability to adapt to customer requirements can be significantly limited by the center, so this scheme is preferable in a stable development environment

In the 1970s, companies with organic structures began to emerge. These include the following options.

It is created to solve a specific problem by a specially selected group of specialists. After implementation, the group disbands. It is mainly used in the development of innovations, at the intersection of several science-intensive areas. In project teams, closer personal ties are formed that positively affect the quality of work of all team members.

The ancestor of this scheme is the Toyota company. In the company, the creation of innovations is put on stream, therefore, to support such work, targeted programs are created that deal with certain issues. If the question is finite in time, then a project team is created. Subordination is double - to the head of the program and the head of the functional unit whose employees work under the program. For the target program, a special functional committee is formed, no more than five people. A secretary is appointed to lead the affairs of the committee. The Committee periodically considers issues that need to be addressed, creates project teams, establishes rules for the relationship between departments, both in the vertical and horizontal planes.

Advantages

disadvantages

the autonomy of groups or programs develops the managerial and professional skills of their members; each process has a person responsible for all the details of the work within the project; high quality of communications and control due to horizontal links and one decision-making center within a project or program, due to this, management becomes more efficient, flexible and responsive to consumer needs

for the full operation of this scheme, a high corporate culture is required; it is necessary to constantly train employees, high requirements for their business and professional qualities; responsibility is blurred due to dual subordination - to the project and the unit; competition for resources between projects and departments, conflicts between their leaders; work standards may be violated due to the employee's employment in design work

A direct analogy is the working artels of the late 80s. Within this scheme, teams make decisions and coordinate their activities independently. There are developed horizontal communications. For their activities, the brigades involve various specialists. If there is a division into functional units in the brigade, then it is called cross-functional and resembles a matrix structure. If there is no such division, then it is called a brigade and resembles a design one. The scheme shows maximum efficiency with a high level of specialists and good technical equipment.

What requirements should the structure of the organization satisfy?

The developed structure should take into account the characteristics of the enterprise, the nature of work, the type of products produced and many other factors. It should be rational, optimal and economical.

Basic development principles:

1. A balance between a rigid hierarchy and the ability to remain flexible in decision making. The structure must have the ability to self-organize, set new goals and remain active.
2. The set of operations performed within the company must be stable and cyclical so as not to develop new procedures each time. Key points of operations should be ordered.
3. The ways of translation of managerial decisions should be as short as possible, and the decisions themselves should be made on the basis of competence, responsibility and availability of information.
4. The distribution of responsibility should occur in accordance with the processes performed.

The principles of the organizational structure of the enterprise

The management structure is a management system responsible for the distribution and coordination of management activities in the enterprise.

The production structure is a controlled system determined by the composition of the enterprise's divisions and their relationships.

The concept of the organizational structure of management- this is an ordered set of links of the organization acting in concert, and the links between them.

As follows from the above definition, the organizational structure of any enterprise is based on 3 principles:

1. Orderliness - a certain nature of subordination, a hierarchy in the organization is observed.
2. Consistency - the actions of all departments are implemented to achieve the goals of the organization.
3. The interaction of individual parts of a single whole - the solution of all problems and the implementation of management decisions is carried out in the relationship between the departments of the organization.

The organizational structure includes the composition of the management bodies, which usually includes the head / manager / director and his deputies, who are responsible for specific areas of the enterprise. Taking into account the nature of relations between the governing bodies, there is a delegation of managerial powers.

It should be noted that the primary factor in the formation of the organizational structure is the production structure of the enterprise, the derivative of which is the management structure.

Control structures are divided into two large groups: and.

The elements of the management structure are workshops, departments, services, the general director, deputies, individual performers and other links in the organizational structure of the enterprise.

A link in the organizational structure of an enterprise is an independent structural unit (department, sector, department) that performs a specific function (managerial, production, commercial, auxiliary) or a set of such functions. Between the links of the organizational structure of the enterprise there are horizontal and vertical links.

The principle of interaction between individual departments in the organization is implemented on the basis of horizontal and vertical links:

• Horizontal links - exist between single-level links, are in the nature of coordination.
• Vertical connections - exist between different levels, are in the nature of subordination and feedback, form a hierarchy and levels of management in the organization.

The nature of relations in the organizational structure of the enterprise is of 2 types:

1. Linear connections - reflect the movement of management decisions and information between line managers who are responsible for the activities of the organization and its structural units.
2. Functional links - reflect the movement of management decisions and information on various management functions.

Control stage and controllability rate

Control stage- this is the unity of the links of a certain level, the hierarchy of management (management of an enterprise, workshop, site, etc.).

The level of management reflects the existing set of links between departments. At the same time, they are formed under the influence of organizational, production, managerial and socio-economic factors. According to its content, the control stage is a formalized expression of all control levels. Accordingly, if the enterprise has three levels of management, then there will also be three steps. The example below illustrates this.

Each management body (or manager) refers to a specific management object - a department, workshop, section, sector, department, etc. Consequently, the management structure will always coincide with the organizational structure of the organization, while the production structure will be part of it.

At the same time, management structures are classified into linear, linear-functional, linear-staff, divisional, program-target, matrix. Each management structure has certain characteristics.

Controllability rate- the number of employees reporting to one line manager, in which the total labor intensity of the functions performed by him approaches the standard (8 hours a day, 40 hours a week, etc.), and the efficiency of managerial work meets the requirements of the organization.

Governance standards can be set by delegating line authority, resulting in the determination of the optimal number of departments in the organization and the number of management levels.

Manageability factors:

1. Management level
2. Task level
3. Qualification of managers and subordinates

The organization should strive for a minimum standard of manageability in order to effectively coordinate and control subordinates.

For enterprises of various industries and fields of activity, the norms of manageability can vary significantly. Average indicators for a three-level organizational structure of an enterprise:

1. The highest level of management - 3-5 people.
2. The average level of leadership is 10-12 people.
3. The lower level of management -25-30 people.

Examples of the organizational structure of an enterprise

The simplest type of organizational structure of an enterprise is linear.

Organizational structure of a linear type enterprise

The figure below shows an example of the organizational structure of an enterprise, formed according to a linear type: the general director performs all management functions, the director of the direction reports to him, which may have departments, workshops or sections in subordination, then ordinary performers.

In this example, there are three levels of governance in the organization, as shown in the diagram:

Accordingly, each level corresponds to one of the three levels of management, which includes all units that are subordinate to the head of a particular level.

Obviously, this enterprise needs reorganization, since the organizational structure has become much more complicated, which negatively affects manageability. The natural direction of reorganization is the transition to a linear-functional management structure, which is characterized by the highest management efficiency, and it is also able to successfully withstand negative changes in the external environment.

An approximate diagram of the organizational structure of an enterprise of a linear-functional type.

Linear-functional structure of the enterprise

In the example above, there was a manufacturing plant. The nature of the formation of organizational structures of the project type is interesting. They are more characterized by a decentralized approach, the involvement of employees in the management of the enterprise, the flexibility of the structure and a weak hierarchy.

The figure shows a diagram of the organizational structure of the matrix type

This approach is considered quite flexible, allowing the organization to better adapt to any changes.

The figure below shows an example of the organizational structure of a matrix type enterprise, which gives a general idea of ​​the nature of interaction between structural units in organizations with a matrix management structure.

It should be noted that this is a rather simplified representation of the matrix organizational structure, since in practice in such organizations there are a large number of informal communication links. As a result, in order to increase the adaptability of the organization, the principle of order is sacrificed, and the principle of consistency is implemented through regular general meetings and meetings "in the negotiation room".

In order to improve the quality of manageability, solve strategic and tactical tasks, create optimal conditions for successful development, enterprises develop an organization structure with information flow patterns (orders, plans, reports) and examples. In the upper part of the scheme are the owners, general directors and directors, in the middle - mid-level specialists, in the lower - performers. The organizational structure is chosen depending on the size of the organization and the field of activity. Ideally, configuration design and development work should be under the control of the owners or top management.

Regardless of the type, the main task of the organizational structure is between the subdivisions of the enterprise, to distribute responsibility and rights between them. The management develops a regulation on the structural unit, consisting of general provisions, defining the main functions and tasks, duties and rights, and the order of relationships.

The diagram shows:

• divisions of the enterprise with the designation of functions in management;
• management levels in the form of steps;
• vertical and horizontal links that provide interaction.

The structure of the enterprise depends on the orientation of the company and the staffing (composition of employees). The company can focus on the use of new opportunities, the search for the most effective resources, the development of new markets. containing a list of departments and positions of employees (with the determination of the amount of salaries), based on the planned size of production and the volume of the wage fund.

Regardless of the type, the organizational systems of enterprises should be:

1. simple (with a minimum number of levels);
2. economical (with minimal expenditure of financial resources);
3. flexible (able to easily change with changes in internal and external factors);
4. efficient (able to provide maximum results with minimal investment).

In essence, the organizational structure is the division of labor in management. A perfect system is able to effectively influence the company, improve the results of its work.

When developing a scheme, the organization takes into account:

• organizational and legal form;
• type, nomenclature, range of products;
• supply and distribution markets;
• production technologies;
• volume of information flows;
• provision of resources.

Organizational structure and staffing are interdependent. In a small company, the leader most often manages alone. As the number of employees increases, the need for a more complex structure with intermediate levels arises.

Types of organizational management structures with diagrams and examples

Depending on the type of connections in structural divisions, economists divide organizational structures into the following types:

1. linear;
2. functional;
3. linear functional;
4. divisional;
5. matrix;
6. combined.

Linear

Any company can use the linear design, regardless of the staffing. It implies the sole management of each unit by a full-time manager who reports to a higher manager.

An example would be the following sample:

The main feature of this configuration is only linear connections, which have a number of advantages:

• a clear system of relations between superiors and subordinates;
• clearly defined responsibilities;
• direct instructions are carried out quickly;
• a high level of transparency in the work of all elements;
• simple control.

When choosing, it is necessary to take into account the disadvantages: a high burden on top management, the inability to quickly resolve disagreements between structural units, and dependence on the abilities of the leader. This is the best option for a small company with a comprehensively trained senior management that can handle the concentration of power and the huge flow of information.

If the linear scheme is supplemented with connections between individual units, it will turn into a functional one. This is clearly seen in the following example:

Departments are grouped based on the type of activity. Functional links allow departments to control each other's work. If staffing allows, you can organize support services. This defines the benefits:

1. reducing the burden on top management;
2. reducing the need for full-time generalists;
3. the ability to create substructures;
4. improving the quality of manufactured products.

The disadvantages include the complication of information flows due to the large number of channels, difficulties in coordinating actions, and excessive centralization.

Linear-functional

Linear-functional configuration makes it possible to avoid the disadvantages of a linear and functional system. Functional services prepare information for line managers who make production and management decisions. But the level of responsibility is decreasing, the burden on management is increasing, and there is a tendency towards centralization.

Divisional

A divisional system is considered more flexible, dividing the organization as follows:

These are independent structures with their own services. Sometimes these can be subsidiaries that are registered as independent legal entities.

Divisional configuration:

1. decentralized;
2. unloads leaders;
3. increases the degree of survival;
4. develops management skills of division leaders.

But ties between employees are weakening, duplicating functions may appear, control over the overall situation is reduced.

matrix

From the scheme and example of the matrix structure of the organization, it can be seen that it is poly-administrative.

Activities are carried out simultaneously in several directions. This configuration is suitable for design organizations and other enterprises launching new projects and programs. A leader is appointed, employees are sent from all departments. At the end of the work they return to their original places. For permanent use, this configuration is not suitable, although it allows:

• promptly fulfill orders;
• reduce the cost of developing and implementing new products;
• prepare leaders.

The matrix complicates the work of the organization, conflicts arise between the heads of departments and project managers.

Combined

Combined schemes allow you to group units according to any attribute and various criteria. This makes it possible to create a system corresponding to the strategy, to combine the principle of unified leadership with the principle of specialization. But it is not always possible to create a flexible configuration, which leads to excessive vertical interaction.

Conclusion

Considered to conclude that the organizational structure requires the development of not only a scheme, but also regulations on the organization, regulations on divisions, business process regulations, job descriptions, staffing, management and budgeting regulations. Samples will not help during development, as studies of the specifics of relationships, strategy goals, economic and social characteristics of the company are required.

Speaking of organizational structure, we mean the conceptual scheme around which a group of people is organized, the basis on which all functions are supported. The organizational chart of an enterprise is essentially a user manual that explains how an organization is built and how it works. More specifically, the organizational structure describes how decisions are made in a company and who is its leader.

Why is it necessary to develop the organizational structure of the enterprise?

• The organizational structure gives a clear understanding of the direction in which the company is moving. A clear structure is a tool with which to maintain order in decision-making and overcome various disagreements.
• The organizational structure binds the participants. Thanks to her, people who join the group have distinctive features. At the same time, the group itself has certain characteristics.
• The organizational structure is formed inevitably. Any organization, by definition, implies some kind of structure.

Elements of the organizational structure

The organizational structure of any organization will depend on who its members are, what tasks it solves and how far the organization has come in its development.

No matter which organizational structure you choose, three elements will always be present in it.

• Control

A specific person or group of people who make decisions in an organization.

• The rules by which the organization operates

Many of these rules may be explicitly stated, while others may be implicit but no less binding.

• Distribution of labor

The division of labor may be formal or informal, temporary or permanent, but in every organization there will inevitably be some type of division of labor.

Traditional organizational structures

These structures are based on functional unit and departments. They are characterized by the fact that the powers of strategic and operational tasks are concentrated at the top level.

There are several types of traditional structures.

• Linear organizational structure

The simplest structure ever. It is characterized by the presence of a certain chain of command. Decisions go down from top to bottom. This kind of structure is suitable for small organizations such as small accounting firms and law firms. The linear structure makes it easy to make decisions.

Advantages:

• The simplest type of organizational structure.
• As a result of tough management, tough discipline is formed.
• Quick decisions lead to quick and effective action.
• There is clarity in the structures of power and responsibility.
• Since control lies with one boss, in some cases he can be flexible.
• There are good career prospects for people who do quality work.

Disadvantages:

• There are opportunities to influence the head of the department.
• A constant problem is the lack of specialization.
• The department head may be overworked.
• Communication is carried out only from top to bottom.
• A boss with power may misuse it for his own benefit.
• Decisions are made by one person.

Line staff organization

Such a structure is characterized by the presence of line managers and departments that, in fact, do not have the right to make decisions. Their main task is to assist the line manager in the performance of individual management functions. The decision-making process in such a structure is slower.

Advantages:

• Allows employees to complete tasks quickly.
• Helps employees take on responsible roles and specialize in specific roles.
• Helps line managers to focus on specific tasks.
• With organizational change, the risk of resistance is minimal.
• Employees feel that their contribution is appreciated.

Disadvantages:

• There can be confusion among employees.
• Employees do not have enough knowledge to focus on the result.
• Too many levels of hierarchy.
• Employees may disagree, which slows down work.
• More costly structure than a simple line organization due to the presence of department heads.
• Decisions can take too long.

Functional structure

This kind of organizational structure classifies people according to the function they perform in professional life.

Advantages:

• High degree of specialization.
• Clear chain of command.
• Clear understanding of responsibility.
• High efficiency and speed.
• No need for duplication of work.
• All functions are equally important.

Disadvantages:

• Communication faces several barriers.
• The focus is on the people, not the organization.
• Decisions made by a single person may not always benefit the organization.
• As a company grows, it becomes more difficult to exercise control over the activities within it.
• Lack of teamwork between different departments or units.
• Since all functions are separated, employees may not know what is happening with colleagues.

Divisional structure

This includes the kinds of structures that are based on the different divisions in the organization. They group employees based on products, markets, and geographic locations.

• Product (commodity) structure

This structure is based on organizing employees and working around different products. If a company produces three different products, then it will have three different divisions for those products. This type of structure is best suited for retail stores with many products.

Advantages:

• Structural units that do not work can be easily closed.
• Each unit can be managed as a separate structural unit.
• Fast and easy decision making.
• Greater independence for decision makers.
• Individual products receive individual attention depending on the problems that arise.
• The organization is characterized by high productivity and efficiency.

Disadvantages:

• Since each structural unit works independently, organizational goals cannot be achieved.
• Unhealthy competition among internal divisions.
• A large number of organizational levels hinders business development.
• All units cannot be equal.
• Marketing individual products can vary greatly in cost.

Market Structure

Employees are grouped based on the market in which the company operates. A company can have five different markets, according to this structure, each of them will be a separate division.

Advantages:

• Employees can communicate with customers in the local language.
• They are available to clients.
• Problems in a particular market can be solved in isolation.
• Since people are responsible for a specific market, tasks are completed on time.
• Employees specialize in working in a particular market.
• New products for specialized markets may be introduced.

Disadvantages:

• There may be intense competition among employees.
• Decision making can lead to conflict.
• It is difficult to define productivity and efficiency.
• All markets may not be considered equal.
• There may be a lack of communication between superiors and employees.
• Employees may misuse their authority.
• Geographic structure

Large organizations have offices in various locations. The organizational structure in this case follows the zonal structure.

Advantages:

• Good communication among employees in the same location.
• Local workers are more familiar with the local business environment and can adapt to geographic and cultural conditions.
• Clients feel better connected with local managers who can speak their language.
• Reports on the work of individual markets.
• Decisions are made carefully.
• New products or product modifications may be introduced to meet the needs of a particular area.

Disadvantages:

• There may be unhealthy competition among different geographical areas.
• Company ethics and principles may differ from region to region.
• Tracking the performance and profits of each area can be time consuming.
• There may be poor communication among employees in different regions.
• Interaction between employees of different regions may not work out.

Matrix structure

It is a combination of product and functional structures. It combines the benefits of both structures for greater efficiency. This structure is the most complex of the existing ones. A distinctive feature of the matrix structure is the subordination of employees to two or more managers of the same level.

There is a functional matrix. In this type of matrix structure, project managers keep track of the functional aspects of the project. However, they have very limited power, the head of the functional unit actually manages the resources and the project.

Advantages:

• Employees do not work in temporary jobs.
• The head of the functional unit manages the project.
• The head of the functional unit is responsible in case something goes wrong.
• The more the project manager communicates with employees, the better the results.
• The project manager can really make a difference without being in control.
• Decision making is concentrated in the hands of the head of the functional unit.

Disadvantages:

• The project manager may face apathy from employees.
• The project manager does not have full power.
• Being out of control, employees may show less performance for the entire department.
• The project manager has weak power, which does not allow him to control employees.
• The project manager has no control over workload management and task prioritization.
• The project manager cannot give a report on the work.

There is also a project matrix, when the project manager is primarily responsible for the work, while the head of the functional unit can give methodological advice and allocate resources.