Organizational structure of management (3) - Lecture. Organization management structure Creating an organizational management structure refers to

1. Organization management structure.
2. Types of management structures.
3. Basic principles of building organizational structures of management.

The management structure of an organization is determined by its production structure. The structure of enterprise management is the composition of management units and their relationships. Organizational structure of management determines the composition of the departments of the administrative apparatus, their interdependence and interconnection. A group of managers and specialists who are responsible for the implementation of the process of developing and implementing management decisions, constitutes the administrative apparatus enterprise.

The management apparatus, which is divided into separate but interconnected parts - the governing bodies, is created to carry out management functions. Each governing body performs a specific set of operations and procedures for managing production. The control apparatus is divided horizontally into links, and vertically into levels of control that form a hierarchy. The sequence of subordination of controls located on the same horizontal level forms the steps of control.

The structure of production cooperation, the level of automation of the administrative apparatus, supplemented by connections and interaction of individual governing bodies, is called the organizational structure of management. The organizational structure of management is influenced by the volume of products produced, the type of production, the level of specialization, concentration, and other factors.

The management apparatus includes management personnel throughout the enterprise, as well as its structural divisions. In practice, there are two types of structures:

1) mechanistic characterized by the use of formal procedures and rules, a rigid hierarchy of power in the organization, and the centralization of decision-making. These include linear, functional, linear-functional, product, divisional structure, etc.;

2) organic, characterized by moderate use of formal rules and procedures, decentralization, flexibility of the power structure, participation in the management of lower levels. This type includes project, matrix, program-target structures.

Linear control structure- a structure that is formed as a result of building a management apparatus only from mutually subordinate bodies in the form of a hierarchical ladder. With this construction, management decisions form linear links. These decisions include administrative functions (organization) and procedures (decision making). This control scheme is based on linear schemes.

The head in such a structure is called linear and closes both administrative and other functions. Moreover, feedback informing the manager about the progress of the work may be absent. Administrative functions and procedures can be delegated by the main manager to lower levels of the hierarchy. Members of each of the lower levels of management are directly subordinate to the head of the next, higher level. The use of this structure is expedient at enterprises with a small number of personnel and small volumes and nomenclature of production.

Functional management structure- a structure in which it is supposed to create units to perform certain functions at all levels of management. At the same time, management decisions are divided into linear and functional, each of which is mandatory for execution. In this structure, general and functional leaders do not interfere in each other's affairs. Each leader closes only part of the functions. Feedback may not be available.

Modification of this structure - functional-object control structure , where, within the framework of functional departments, the most qualified specialists are allocated, responsible for the performance of all work on a specific object. This reinforces the personification of responsibility for the entire range of work on the unjustified increase in the role of individual objects to the detriment of the interests of the enterprise as a whole.

Linear-functional management structure- structure in which management actions are divided into linear - binding and functional - advisory.

The general manager has a linear impact on all participants in the structure, and the heads of functional (economic, engineering, etc.) departments have a functional impact on the performers of the work.

Linear-headquarters management structure - a structure that involves the formation to help line managers of specialized functional units - headquarters for solving certain problems (analytical, coordination, network planning and management, special, etc.). Headquarters are not endowed with an administrative function, but prepare recommendations, proposals and projects for line managers.

"Product" management structure- a structure, a feature of which is the separation of functions for the manufactured product at the production and service levels of the enterprise. This allows you to keep separate records, sales, supply, etc.

Innovation - production management structure- this is a structure that provides for a clear division of leadership between units that carry out innovative functions - strategic planning, development and preparation for the production of new products and the functions of day-to-day operational management of the established production and marketing of mastered products.

The emergence of such a structure is a consequence of the excessive load on the management apparatus of current operational work, which deprives its employees of the opportunity to systematically update products, equipment and production technology. The use of such a structure is rational with a significant scale of production of periodically updated products.

Project management structure- a structure focused on ensuring effective management of parallel execution in an enterprise or in an organization of a number of large projects. At the same time, certain sets of units participating in individual projects, headed by the leaders of these projects, receive autonomy. The project manager bears full responsibility for its timely and high-quality development and implementation. He is endowed with all the rights to manage the subdivisions subordinate to him and does not have subordinate subdivisions that are not directly related to the preparation of the project.

These structures can be created in centralized and decentralized forms. With a decentralized form, functional and auxiliary units are divided into project units and report to project managers, while in a centralized form they become common to all project units and report to the head of the enterprise.

Matrix control structure- a structure that combines vertical linear and functional control links with horizontal ones. The personnel of functional units, remaining in their composition and subordination, are also obliged to follow the instructions of project managers or special headquarters, councils, etc., formed to manage individual projects and work. Project managers establish the composition and sequence of work, and the heads of functional units are responsible for their proper and timely implementation. These structures can be used in individual organizations, as well as for systems of organizations.

Divisional management structure is characterized by the allocation within the organization of practically independent units - "divisions" - by product, innovation or sales markets. It is used in the practice of corporate governance, when the managed organization belongs to the category of large and largest in terms of production scale and number of employees, and is also characterized by a variety of products, breadth of sales markets.

A modern control system should be simple and flexible. The main criterion for its construction is to ensure competitiveness and efficiency. The control system must meet the following requirements:

Have the minimum required number of management levels;

Include (small) compact units staffed by skilled professionals;

Be based on flexible structures based on teams of specialists;

To produce products oriented to a competitive market;

The organization of work should be consumer-oriented.

Among the main principles for creating effective organizational structures relate:

· Building blocks should be product, market, or customer oriented, not function oriented;

· The building blocks of any structure should be target groups of specialists and teams, not functions and departments;

· It is necessary to focus on the minimum number of management levels and a wide area of ​​control;

· Conjugation of subdivisions of the structure in terms of goals, problems and tasks to be solved;

· Each employee must be responsible and have the opportunity to take the initiative.

The most important factor influencing the choice of the type of organizational structure of management and its formation is the norm of manageability (range of control, sphere of management).

controllability norm called the allowable number of performers subordinate to one leader.

An excessive increase in the number of subordinates leads to an increase in the manager's managerial responsibilities, which weakens control over the work of subordinates, makes it difficult to detect miscalculations in work, etc. An excessive narrowing of the norm of governance is the cause of an increase in the number of managerial levels, over-centralization of power, an increase in administrative costs and an increase in problems as a result of a weakening of the relationship between the top and bottom levels of the organizational management pyramid.

To determine the controllability norm, two main approaches are used:

1. Experimental-statistical, based on the method of analogies. It is carried out by comparing the headcount of the analyzed structure with the headcount of a similar structure that performs a commensurate amount of work, but has a smaller staff. This method is quite simple, does not require special labor costs and is most widely used. According to it, typical states are determined by analogy with advanced structures. At the same time, such a method cannot, strictly speaking, be attributed to scientifically substantiated methods. Therefore, calculation and analytical methods are used to develop scientifically sound, advanced structures.

2. Calculation and analytical methods are based primarily on such factors as the nature of the work, the cost of working time, the amount of information, the number of relationships.

There are three types of work depending on its nature:

creative (heuristic), which consists in the development and adoption of decisions;

administrative and organizational, consisting of administrative, coordination and control and evaluation operations;

Performing (operator), which consists in the performance of work provided for by service instructions.

The volume of work performed by personnel, due to the specifics of their work, is not always possible to express in standard hours.

The complexity of the work of individual specialists will depend on what proportion in the total volume of their service activities is one or another type of work. The complexity and versatility of personnel work predetermines the complexity of its quantitative assessment. Creative work in this respect can be defined as the least quantifiable, it cannot be expressed, for example, in standard hours. Administrative work also falls under the category of complex labor, it may contain individual operations that can be measured, but the proportion of these operations is very small. Performing labor has a well-defined quantitative expression, and its costs can be measured in standard hours.

The French mathematician and management consultant of Lithuanian origin V. Greikūnas already in 1933 argued that the factor that determines the norm of manageability is the number of controlled relationships, relationships in the organization. He noted that there are three types of relationships: the relationship of the head with individual employees, general relationships, relationships between subordinates. Greikūnas used the following equation to determine the total number of such bonds:

where WITH - number of connections N- the number of subordinates.

In accordance with this equation, with two subordinates, the number of bonds will be 6 units, with three - 18, with four - 44, with five - 100, with ten - 5210, with eighteen - 2359602. This analysis has been used by many scientists to argue that the number of subordinates of one leader should not exceed six people. In this case, the number of connections will be 222 units. Mathematical analysis of potential relationships with a given norm of manageability, made by Greikūnas, shows that, firstly, numerous complex social processes occur during the interaction of a leader and subordinates, and, secondly, an avalanche process of increasing the number and complexity of these processes for each successive subordinate . Fortunately, this does not happen in practice, but the conclusions made by Greikūnas are, as it were, a warning against excessive excessiveness in increasing the number of subordinates or speak of the need to reduce the number of communications, primarily by providing greater independence to subordinates.

In the practical activities of enterprises, the number of subordinates is not fixed. It varies within the enterprise itself, depending on the managerial levels and the number of managers. The number of subordinates depends on many factors influencing the determination of the optimal controllability rate associated with the specific conditions of the enterprise.

Findings:

1. The most important form of organization of the company is the organizational structure of management.

2. The organizational structure is designed on the basis of the principles of a systematic approach, manageability, professional and legal regulation.

3. The composition of structural divisions and methods of their organization depend on the form of ownership.

Organizational structures differ from each other: formalization (the degree of use of pre-established rules and procedures), complexity (the degree of division of activities into various functions), the ratio of centralization and decentralization (the levels at which management decisions are made).

Among the large number of different organizational structures, it is worth highlighting three types of classical organizational structures: linear, functional and linear-functional.

Linear control structure assumes that each employee is subordinate and accountable to only one manager and is connected with the higher system only through him. The head is fully responsible for the activities of the unit entrusted to him.

The line structure clearly expresses the responsibility, it guarantees the speed of reaction to a direct order. An example of a linear organizational control structure is the command structure in the army, where each unit head is fully responsible for the actions of his unit to a higher commander. A conditionally linear structure is shown in Fig. 12.1.

Advantages linear control structure:

• o unity and clarity of command;
• o consistency of actions of performers;
• o increasing the responsibility of the head for the results of the activities of the unit headed by him;
• o efficiency in decision-making;
• o receiving by executors of interconnected orders and tasks provided with resources;
• o personal responsibility of the head for the final results of the activities of his unit.

Rice. 12.1.

D - director; I - performers

disadvantages The linear control structure can be reduced to the following:

• o high requirements for the manager, who must have extensive versatile knowledge and experience in all management functions and areas of activity carried out by employees subordinate to him, which in turn limits the scale of the headed unit and the manager’s ability to effectively manage it;
• o large overload of information, a huge flow of documentation, multiple contacts with subordinate, higher and related organizations.

The linear management structure is used by small and medium-sized firms that carry out simple production, in the absence of broad cooperative ties between enterprises.

The structure in which the division of managerial labor occurs according to management functions. For example, within the framework of a manufacturing enterprise, the following areas of work can be distinguished: organization of production, economic development and finance, research and development, supply, social development of the team. For each of these areas, an appropriate deputy director can be appointed and given the appropriate powers and resources. Schematically functional structure of management is presented on fig. 12.2.

Rice. 12.2.

D - director; FN - functional chiefs; I - performers

Advantages functional management structure:

• o high competence of specialists responsible for the implementation of specific functions;
• o expanding the capabilities of line managers for the operational management of production as a result of their release from the preparation of information on issues of functional activities.

The functional structure of production management is aimed at performing constantly recurring routine tasks that do not require prompt decision-making. Functional services usually include highly qualified specialists who perform specific activities depending on the tasks assigned to them.

To shortcomings functional management structures include:

• o Difficulties in maintaining constant relationships between different functional services;
• o lengthy decision-making process;
• o hierarchy in the structure of relationships;
• o lack of mutual understanding and unity of action between employees of functional services of different production departments of the company;
• o reducing the responsibility of performers for work as a result of the depersonalization of their performance of their duties, since each performer receives instructions from several managers;
• o duplication and inconsistency of instructions and orders received by employees "from above", since each functional manager and specialized unit puts their issues in the first place;
• o Violation of the principles of unity of command and unity of management.

This structure is good for large firms and institutions with a large number of employees and fixed activities.

In its pure form, linear and functional structures are rarely encountered in practice. More common is a mixed variant, which is called linear functional structure(Fig. 12.3).

The larger the company and the more complex its management system, the more branched out the apparatus it has. In this regard, there is an acute issue of coordinating the activities of functional services or creating large specialized units with highly qualified personnel who have at their disposal computer equipment.

Rice. 12.3.

D - director; FN - functional chiefs; FP - functional divisions; OP - subdivisions of the main production

Among the varieties of organizational management structures, a special place is occupied by matrix structure(Fig. 12.4). This is a modern effective type of organizational management structure, which is created by combining two types of structures: linear and program-targeted.

This structure is used in relatively large (program) projects, regional and sectoral (intersectoral) organizations and enterprises, within which several relatively independent projects are carried out simultaneously.

With a matrix management structure, when determining horizontal links, it is necessary:

• o selection and appointment of the head of the program (project), his deputies for individual subsystems (topics) in accordance with the structure of the program;
• o identification and appointment of responsible executors in each specialized unit;
• o organization of a special program management service. To ensure work within the framework of the matrix structure, it is necessary to make changes in the production structure: to create special target divisions in the parent company that bring together leading specialists to jointly develop the main ideas of the program.

Rice. 12.4.

With a matrix management structure, the program (project) manager works with specialists not directly subordinate to him, who are subordinate to line managers. It basically determines what and when should be done for a particular program. Line managers decide who and how will perform this or that work.

Advantages matrix control system:

• o significant activation of the activities of managers and employees of the administrative apparatus through the formation of program units that actively interact with functional units, strengthening the relationship between them;
• o division of management functions between managers responsible for ensuring high final results (heads of project and program groups and departments), and managers responsible for ensuring the fullest use of available production, material and labor resources (heads of functional units);
• o involvement of managers at all levels and specialists in the field of active creative activity to accelerate the technical improvement of production.

From the whole variety of organizational management structures, it is advisable to single out two large groups. These are hierarchical and adaptive organizational structures. Differences between these structures are given in table. 12.1.

Hierarchical organizational structures(formal, mechanistic, bureaucratic, classical, traditional) are characterized by a rigid hierarchy of power, formalization of the rules and procedures used, centralized decision-making, narrowly defined responsibility in activities.

Adaptive organizational structures(organic, flexible) are characterized by good adaptability to external and internal working conditions, management hierarchy, an adequate number of management levels, structure flexibility, weak or moderate use of formal rules and procedures, decentralized decision-making, broadly defined by responsibility in activities.

Table 12.1

Comparison of hierarchical and adaptive organizational structures

Comparison criterion	Managment structure
	hierarchical	adaptive
Characteristics of the management hierarchy	Rigid hierarchy. Management levels are clearly defined	Lack of hierarchy or its blurring. Management levels are not clearly defined
Characteristics of the development of vertical and horizontal links	Strongly developed vertical subordination links	High level of horizontal integration between staff. Well-developed ties of cooperation and coordination
Guide type	Monocentric, permanent	Polycentric, change of leaders according to situations
Formalization of the applicable rules and procedures for the implementation of management activities	Rigid formalization of rules and procedures	Weak or moderate formalization of rules and procedures
Formalization of managerial staff relations	Narrowly defined duties, rights and responsibilities	Broadly defined rights, duties and responsibilities
Division of managerial labor	Narrow specialization of activity. Rigid and permanent assignment of functions	Wide range of activities. Temporary Assignment of Functions to Groups
Characteristics of managerial decision-making	Centralization of managerial decision-making	Decentralization of managerial decision-making
Characteristics of the company's personnel relations	Formal relationships that are official in nature	Informal relationships that are personal in nature

The scheme of the organizational structure of management reflects the static position of units and positions and the nature of the relationship between them.

Distinguish connections:

linear (administrative subordination);

Functional (by field of activity without direct administrative subordination);

Interfunctional, or cooperative (between units of the same level).

Depending on the nature of the connections, several main types of organizational management structures are distinguished:

· linear;

· functional;

linear-functional;

divisional;

regional;

· matrix;

grocery

consumer oriented.

Linear organizational structure of management- This is one of the simplest organizational structures of management. It is characterized by the fact that at the head of each structural unit there is a single leader, endowed with all powers and exercising sole leadership of subordinate employees and concentrating 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 single channel. 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 along the “top-down” chain, 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 leaders of this particular organization is formed. 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. A higher management body does not have the right to give orders to any performers, bypassing their immediate superior.

As can be seen from the diagram, in a linear management structure, each subordinate has a boss, and each boss has several subordinates. Such a structure functions in small organizations at the lowest level of management (section, brigade, department, etc.).

In a linear structure, the organization's management system is assembled according to production characteristics, taking into account the degree of concentration of production, technological features, the range of products, etc.

The linear management structure is logically more harmonious and formally defined, but at the same time less flexible. Each of the leaders has full power, but relatively little ability to solve functional problems that require narrow, specialized knowledge.

The linear organizational structure of management has its advantages and disadvantages.

Serious shortcomings of the linear structure to a certain extent can be eliminated by the functional structure.

Rice. 1 Linear organizational structure of management

Organizational structure of management is an ordered set of interrelated elements that are in stable relations with each other, ensuring their development and functioning as a single whole.

The organizational structure of management is aimed at establishing clear relationships between individual departments of the organization, the distribution of rights and responsibilities between them.

Relationships between elements of the control structure are:

1) vertical when there is an interaction between a leader and a subordinate (for example, communication between the director of the company and the managing structural unit);

2) horizontal when there is an interaction of equal elements (for example, communications between managing structural divisions of the same level)

The types of relations within the organization are similar to the type of construction of its management structure and are divided into:

1) linear relationship- is the relationship between the leader and his subordinates;

2) functional relationship- this is the relationship of a specialist who is authorized to perform a particular function within the entire organization, with other members of the organization;

3) managerial relations, this type of relationship takes place in the case of representing someone's rights and powers. Job responsibilities at the same time consist in providing recommendations, advice.

The management structure has a huge impact on all aspects of management, as it is associated with the key concepts of management - goals, functions, process, mechanism, functioning, powers of people. Therefore, managers of all levels pay great attention to the principles and methods of forming structures, choosing the type or combinations of types of structures, studying the trends in their construction, assessing their compliance with the goals and objectives being solved.

The elements of the management structure are: management worker - a person performing a specific management function; management body - a group of employees connected by certain relationships, consisting of primary groups.

The primary group is a team of management employees that has a common leader, but no subordinates.

The management structure should reflect the goals and objectives of the company, be subordinate to production and change along with it. It should reflect the functional division of labor and the scope of authority of management employees; the latter are defined by policies, procedures, rules and job descriptions and are expanded, as a rule, towards higher levels of management. The powers of managers are limited by environmental factors, the level of culture and value orientations, accepted traditions and norms. The governance structure must satisfy a variety of requirements that reflect its importance to management. These principles are taken into account in the principles of designing the organizational structure of management. Organizational structure design principles:

1) the structure should reflect the goals and objectives of the organization, be subordinate to production and its needs;

2) the structure should provide for an optimal division of labor between management bodies and individual employees, ensuring the creative nature of the work and normal workload, as well as proper specialization;

3) the formation of the structure should be inseparable from the definition of the powers and responsibilities of each employee and management body, with the establishment of a system of vertical and horizontal links between them;

4) the structure must maintain a correspondence between functions, duties, powers and responsibilities, since its violation leads to an imbalance in the management system as a whole;

5) the management structure should be adequate to the socio-cultural environment of the organization, have a significant impact on decisions regarding the level of centralization and detail, the distribution of powers and responsibilities, the degree of independence and the extent of management control
tellers and managers.

The most important requirements that organizational management structures must satisfy are the following.

1. Optimality. The management structure is recognized as optimal if rational connections are established between the links and management levels at all levels with the smallest number of management levels.

2. Efficiency. The essence of this requirement is that during the time from the decision to its execution in the controlled system, irreversible negative changes do not have time to occur, making the implementation of the decisions made unnecessary.

3. Reliability. The structure of the control apparatus must guarantee the reliability of information transmission, prevent distortion of control commands and other transmitted data, and ensure uninterrupted communication in the control system.

4. Economy. The task is to ensure that the desired effect of management is achieved at minimal cost to the administrative apparatus. The criterion for this can be the ratio between the cost of resources and the useful result.

5. Flexibility. The ability to change in accordance with changes in the external environment.

6. Stability of the governance structure. The invariability of its basic properties under various external influences, the integrity of the functioning of the control system and its elements.

Textbook output:

Fundamentals of management. Chernyshev M. A., Korotkov E. M., Soldatova I. Yu., prof. I. Yu. Soldatova., Chernysheva M. A., Ed. prof. I. Yu. Soldatova., Soldatova I., Chernyshov M.A. - editor-compiler, Publisher: ITK "Dashkov and K", SCIENCE / INTERPERIODICS MAIK, Nauka-Press 2006

Under organizational structure enterprise management refers to the composition (list) of departments, services, divisions in the enterprise management apparatus, the nature of subordination, interaction, coordination and information communications, the procedure for distributing management functions at various levels and divisions.

The basis for building the organizational structure of enterprise management is its production structure. In the organizational structure of enterprise management, the following subsystems can be conditionally distinguished:

• organization of production processes;
• technological preparation of new production;
• technical quality control of products and works;
• maintenance of the main production;
• management of production and sales of products;
• personnel Management;
• economic and financial services, etc.

Functional connections and possible ways of their distribution between departments and employees are diverse, which determines the variety of possible types of organizational structures for production management.

In modern conditions main types of organizational structures controls are:

• linear,
• line staff;
• functional;
• linear-functional;
• divisional;
• matrix (design).

Linear organizational structure management is characterized by the fact that at the head of each unit is a leader who performs all management functions and manages subordinate employees. That is, the basis of the linear organizational structure of the enterprise is the principle of unity of command, according to which each employee has only one immediate supervisor. The decision is passed along the chain from top to bottom, which forms the hierarchy of a particular enterprise. The top manager of the organization is connected with each of the subordinate employees by a single chain of subordination, passing through the corresponding intermediate levels of management (Figure 5.1).

Figure 5.1 - Linear control structure

The linear organizational structure of management is characterized by a vertical: the top manager - the line manager of the unit - performers, that is, there are only vertical connections. This structure is built without highlighting functions.

The main advantages of the linear organizational structure of management:

• management efficiency;
• a clear system of mutual relations of functions and divisions;
• a clear system of unity of command - one leader concentrates in his hands the leadership of all processes that have a common goal.

The main disadvantages of the linear organizational structure of management:

• lack of links dealing with strategic planning;
• high centralization of management;
• a large number of leaders;
• dependence of the results of the enterprise on the qualifications, personal and business qualities of top managers.

The linear organizational structure of management is used and effective in small enterprises with simple technology and minimal specialization.

Linear-staff organizational structure of management similar to linear, but control is concentrated at the headquarters (Figure 5.2). Headquarters- this is a group of employees who collect information, analyze it, perform consulting work and, on behalf of the head, develop drafts of the necessary administrative documents.

Figure 5.2 - Line-staff management structure

The main advantages of the linear-staff organizational structure of management:

• the possibility of a deeper than in the linear, the development of strategic issues;
• some unloading of top managers;
• the possibility of attracting external consultants and experts, etc.

The main disadvantage of the linear-staff organizational structure of management is the lack of responsibility of staff specialists for the final result.

The growth in the scale and complexity of production, accompanied by a deepening division of labor, specialization of management, leads to the use of a functional organizational structure of management.

Functional organizational structure of management involves the formation of separate divisions in the management apparatus according to the areas of activity. The heads of these divisions are appointed by specialists who are the most qualified in the relevant field (Figure 5.3).

Figure 5.3 - Functional management structure

This structure stimulates business and professional specialization, reduces duplication of efforts in functional areas, and improves coordination of activities.

It is characterized by a management vertical: a manager - functional managers (production, marketing, finance) - performers, i.e. there are vertical and inter-level connections.

The main advantages of the functional organizational structure of management:

• direct impact of specialists on production;
• high level of management specialization;
• improving the quality of decisions made;
• the ability to manage multi-purpose and multi-profile activities.

The main disadvantages of the functional organizational structure of management include:

• complexity and inefficiency, as there are many divisions, and, consequently, control channels;
• lack of flexibility;
• poor coordination of activities of functional units;
• low speed of making managerial decisions;
• lack of responsibility of functional managers for the final result of the enterprise.

It is advisable to use the functional organizational structure of management in those enterprises that produce a relatively limited range of products, operate in stable external conditions and require the solution of standard management tasks to ensure their functioning.

In practice, it is usually used linear-functional organizational structure of management, providing for the creation of a linear management structure of functional units at the main links (Figure 5.4).

Figure 5.4 - Linear-functional control structure

The linear-functional organizational structure of management combines the advantages of both linear and functional management structures.

The disadvantages of the linear-functional organizational structure of management include:

• lack of close relationships and interaction between production units at the horizontal level;
• the duration of the passage and implementation of management commands and procedures;
• the possibility of conflicts between functional units, etc.

Divisional organizational structure of management involves the allocation of relatively separate and endowed with greater rights in the implementation of their activities structural units, called divisions.

The division is created according to one of the criteria:

• on manufactured products (services and works);
• targeting specific customer groups;
• geographic regions served;
• to several markets or large groups of consumers;
• types of products and regions where they are sold;
• regions and types of products.

Different types of divisional structure have the same goal - to provide a prompt response to changing environmental factors. For example, the product management structure allows you to develop and introduce new types of products into production in a competitive environment.

The divisional organizational structure of management creates conditions within the enterprise for the partial decentralization of the decision-making process and the transfer of responsibility for making a profit to the divisions (Figure 5.5).

The main advantages of the divisional organizational structure of management:

Provides management of diversified enterprises with a large number of employees and geographically remote divisions;

Figure 5.5 - Divisional (product) organizational structure of management

• more flexible and quick response to changes in the external environment;
• divisions become "profit centers";
• closer relationship between production and consumers.

The main disadvantages of the divisional organizational

management structures:

• a large number of "floors" of the management vertical;
• disunity of divisions of subdivisions from divisions of the head enterprise;
• the main managerial ties are vertical, therefore, the shortcomings common to hierarchical structures remain: red tape, insufficiently clear interaction between departments in resolving issues, overloaded managers, etc.;
• duplication of functions on different "floors", which leads to high costs for the maintenance of the management structure;
• in divisions, as a rule, a linear or linear-staff management structure with all their shortcomings is preserved.

Matrix (project) organizational structure management is created on the basis of a combination of two types of structures: linear and divisional. General instructions to performers are given by line managers, and special instructions are given by the heads of divisions implementing a specific project (Figure 5.6).

Figure 5.6 - Matrix (project) organizational structure

management

Thus, a distinctive feature of the matrix organizational structure of management is the presence of two managers with equal rights among employees. The contractor reports to the head of the functional service and the project manager, who is endowed with certain powers in the framework of the implementation of this project.

The main advantages of the matrix organizational structure of management:

• a clear focus on the goals of the project;
• more efficient ongoing project management;
• more efficient use of the qualifications of the enterprise's personnel;
• strengthening control over the implementation of individual tasks and stages of the project;
• reducing the time for making managerial decisions, as horizontal communications and a single decision-making center have been created.

The main disadvantages of the matrix organizational structure of management:

• double subordination of project executors;
• complexity of information links;
• high requirements for the qualifications, personal and business qualities of the employees involved in the implementation of the project;
• the possibility of conflict situations between the heads of departments and projects.

This type of management structure is used in large enterprises whose products have a relatively short life cycle and often change due to the scientific and technical development of the industry or require extensive research and technical development.

In practice, none of the listed management structures is applied in its pure form, with the exception of the linear one, and then only in small enterprises. The vast majority of them use a mixed type of management.

The construction of organizational management structures is carried out taking into account the specific conditions of the enterprise's activity: the scale of activity, the type of products manufactured, the nature of production, the scope of activity (local, national, foreign market), the qualifications of employees, automation of management work, etc.

The development of an organizational management structure includes the following steps:

• setting goals and objectives of the enterprise;
• determination of the functions carried out by the enterprise to achieve its goals (general management, planning, finance, financial control, management and accounting, personnel management, marketing, procurement and sales, production);
• grouping and (or) interconnection of functions;
• identification of structural units responsible for the implementation of specific functions;
• analysis, planning and description of all main types of work;
• drawing up a recruitment and training program for new units.

The organizational structure of management must meet the following requirements:

• ensure efficiency of management;
• have a minimum number of management levels in specific conditions and rational communications between management bodies;
• be economical.

The development of new types of products in the face of increasing competition, the intensive introduction of modern equipment and technologies, the development of new methods of organizing production require constant improvement of organizational management structures.

test questions

• 1. What is meant by the organization of production?
• 2. What is meant by the production process?
• 3. Name the principles of organization of the production process at the enterprise.
• 4. What is meant by the production cycle?
• 5. What factors affect the duration of the production cycle?
• 6. What is the economic importance of the duration of the production cycle?
• 7. What are the forms of social organization of production?
• 8. What is the essence of the concentration of production?
• 9. Why are specialization and co-production interconnected?
• 10. What are the forms of specialization of production?
• 11. What is the combination of production?
• 12. What are the forms of combined production?
• 13. What are the types of production?
• 14. What is meant by the production structure of the enterprise?
• 15. What factors determine the production structure of the enterprise?
• 16. What is a production site, workplace?
• 17. What is meant by the production infrastructure of an enterprise?
• 18. What is meant by the organizational structure of the enterprise?
• 19. What requirements should the organizational structure of management at the enterprise meet?
• 20. Why is it necessary to improve the organizational structure of management?