Lecture: Organization as an object of management

Lecture: Organizational management structures

Purpose of the lecture: present the main management structures of organizations, highlight their positive and negative aspects.

The organizational structure of management refers to the activities of the subject of management. It is individual and depends on the characteristics of the organization’s economic activities.

An organizational structure is a set of management units located in strict subordination and ensuring the relationship between the managing and managed subsystems.

The management structure of an organization must include the following elements:

units (departments);

management levels.

In the theory and practice of management, two large blocks of organizational structures have emerged:

Bureaucratic organizational structures:

Linear.

Line-staff.

Functional.

Divisional.

Organic (adaptive) organizational structures:

Matrix.

Linear structure characterized by the fact that at the head of each structural unit there is one manager, vested with full powers and exercising sole management of the employees subordinate to him and concentrating in his hands all management functions.

With linear management, each link and each subordinate has one leader, through whom all management decisions pass through one channel. In this case, management levels are responsible for the results of all activities of managed objects.

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 a manager of a higher level, a kind of hierarchy of managers of a particular organization is formed.

The linear control structure looks like this (figure):

Rice. Linear management structure

Advantages of a linear management structure:

A clear system of mutual connections between departments.

A clear system of unity of command, effective use of the central management apparatus.

Clear responsibility.

Quick response of performers to direct instructions from superiors.

Efficiency in decision making at one level of management.

Simplicity of organizational forms and clarity of relationships.

Minimum production costs.

The disadvantages of a linear management structure are:

Lots of time to implement management decisions.

Small initiative at all levels.

Weak opportunities for career growth for managers.

Low flexibility and adaptability in relation to the external environment.

Tendency to red tape and shifting problems when resolving issues that require the participation of several departments.

The criteria for the effectiveness and quality of work of departments and the organization as a whole are different.

The tendency to formalize performance appraisals creates an atmosphere of fear and mistrust.

Increased dependence of work results on the qualifications and business qualities of managers.

Functional management structure characterized by the fact that functional management is carried out by a certain set of departments specialized in performing specific types of work necessary for making decisions in the line management system.

The idea of ​​the management structure is that the performance of certain functions on specific issues is assigned to a group of specialists focused on performing certain types of work.

In an organization, as a rule, specialists of the same profile are united into structural units (departments), for example, the marketing department, planning department, accounting, logistics, etc. Thus, the overall task of managing an organization is divided, starting from the middle level, according to functional criteria.

Functional and line management exist together, which creates double subordination of performers.

The functional structure of management is presented in the figure:

Rice. Functional management structure.

Advantages of a functional management structure:

Effective management due to high specialization of management personnel.

Good control over the implementation of strategic decisions.

Opportunity for career growth and development.

No duplication of linear and functional relationships.

Reducing the time it takes for information to pass through.

Less management workload.

Disadvantages of a functional management system:

Difficulties in coordinating the activities of various departments.

Lengthy decision-making procedure.

Loss of mutual understanding in actions between employees of functional services.

A high degree of interest in achieving the goals of functional units to the detriment of the overall goals of the organization.

Reduced responsibility due to lack of unity of command.

Linear-staff organizational structure is a linear-functional management structure, supplemented by a headquarters body.

Staff structures are created in the following cases:

liquidation of consequences or prevention of natural disasters, accidents, catastrophes;

development of new products, new technology, not traditional for this enterprise;

solving a sudden extraordinary problem, for example, related to the aggressive behavior of competitors in the market and the need to develop a response.

The headquarters unit can be either temporary or permanent in nature and perform an advisory role in the formulation and implementation of a specific problem or task.

The linear-staff organizational structure looks like this (figure):

Rice. Linear-staff organizational structure.

Among the advantages of this management structure are:

Detailed study of strategic and tactical issues.

Unloading (partially) of senior management in analyzing information and developing proposals.

Possibility of attracting external experts and consultants.

Unloading of functional departments.

The disadvantages of line-staff management are:

Insufficiently clear division of responsibilities, because external consultants are not responsible for the outcome of decisions.

Tendencies towards excessive centralization of management.

Other disadvantages inherent in a linear management structure.

Divisional (divisional) organizational structure

Divisional structures are based on the separation of large production and economic units, providing operational and production independence and transferring responsibility for making a profit to this level.

The structures are characterized by full responsibility of department heads for the results of the activities of the divisions they head. In this regard, the most important place in the management of companies with a divisional structure is occupied not by the heads of functional departments, but by the managers heading the departments.

The structuring of a company into departments (divisions) is usually carried out according to one of three principles:

divisional-productive structures;

customer-oriented organizational structures;

divisional-regional structures.

The divisional management structure is shown in the figure

Rice. Divisional management structure

Advantages of a divisional management structure:

Prompt response to changes in external operating conditions.

Bringing together the one who makes the decision with the one who implements it.

Good conditions for the growth of managers.

High degree of coordination of management activities within one division.

Closer connection between producers and consumers.

"Responsibility centers" work more effectively on issues of increasing profits.

Disadvantages of the divisional structure:

Presence of internal competition for resources and personnel.

Difficulty in separating overhead costs and calculating costs.

Difficulty in coordinating the interests of various divisions.

Red tape and overload due to a large number of vertical connections.

Duplication of functions at different levels of management.

The departments maintain a linear management structure.

The remoteness of the central apparatus from specific areas of the organization’s activities, and, consequently, this leads to an increase in the number of personnel and other problems associated with official abuses.

Matrix organizational structure

The basis of the matrix structure is formed by a linear-functional structure, supplemented by program control structures. In addition to the head of the organization, a program manager is determined, whose rank is higher than the rank of the head of the organization.

Matrix structures come in many forms: project management, temporary task forces, and permanent integrated teams. Temporary target groups are actively used by small businesses based on venture business.

Elements of the matrix organization, and in some cases the matrix department as a whole, have been applied to the electronics industry and other so-called high technology areas.

To implement a specific project, an autonomous structure is created, which is similar to one of the elements of the divisional structure

The matrix structure is shown in the figure:

The advantages of a matrix structure are:

Integration of various types of company activities within the framework of ongoing projects and programs.

Obtaining high-quality results on a large number of projects, programs, products.

Significant activation of the activities of managers and employees of the administrative apparatus.

Involving managers at all levels and specialists in the field of active creative activity.

Reducing the workload on top management level managers by transferring decision-making powers to the middle level.

Strengthening the personal responsibility of a specific manager.

Achieving greater flexibility and coordination of work.

Overcoming intra-organizational barriers without interfering with the development of functional specialization.

The disadvantages of a matrix management system are:

The complexity of the matrix structure for practical implementation.

The structure is complex, cumbersome and expensive to implement and operate.

It is a difficult form of organization;

In connection with the system of dual subordination, the principle of unity of command is undermined.

There is a tendency towards anarchy; under the conditions of its operation, rights and responsibilities between elements are unclearly distributed.

This structure is characterized by a struggle for power.

Excessive overhead costs due to maintaining more managers.

Difficulties arise with the long-term use of specialists in a given company;

There is partial duplication of functions;

Management decisions are not made in a timely manner; typically characterized by group decision making.

Rice. Matrix management structure

The simplest organizational structure is linear (Fig. 8.1). Its basic principles: all management functions are concentrated in the head of the enterprise, direct subordination of personnel to the manager with a control range of 5-10 people (depending on the situation), hierarchy and unity of command, universalism of the line manager.

Fig.1. Linear organizational structure of enterprise management

Advantages of a linear management structure:

· a clear system of mutual connections between functions and departments;

· a clear system of unity of command - one manager concentrates in his hands the management of the entire set of processes that have a common goal;

· clearly expressed responsibility;

· quick response of executive departments to direct instructions from superiors.

· consistency of actions of performers;

· efficiency in decision making;

· simplicity of organizational forms and clarity of relationships;

· minimum production costs and minimum cost of products;

Disadvantages of a linear structure:

· lack of links dealing with strategic planning issues; in the work of managers at almost all levels, operational problems (“turnover”) dominate over strategic ones;

· a tendency to red tape and shifting responsibility when solving problems that require the participation of several departments;

· low flexibility and adaptability to changing situations;

· criteria for the effectiveness and quality of work of departments and the organization as a whole are different;

· the tendency to formalize the assessment of the effectiveness and quality of work of departments usually leads to the emergence of an atmosphere of fear and disunity;

· a large number of “management levels” between workers producing products and the decision maker;

· overload of top-level managers;

· increased dependence of the organization’s performance on the qualifications, personal and business qualities of senior managers.

Thus, the noted shortcomings lie not in the plane of a specific linear organizational management structure, but in the plane of organizing the work of the enterprise, and can be eliminated by replacing some of the bureaucratic elements with economic ones.

Conclusion: it can be widely used in modern conditions, but requires the use of modern methods of organizing the work of the enterprise as a whole.

The line management structure is simple and easy to understand. Clearly defined rights and responsibilities of all its participants create conditions for prompt decision-making.

As the company grows, technology becomes more complex, and the range of manufactured products expands, the need arises to create additional functional units in the enterprise structure that solve general and functional problems.

A linear management structure is used by small and medium-sized firms engaged in simple production. Each production or management division is headed by a manager who concentrates in his hands all management functions and decision-making powers. The principle of unity of command is clearly expressed; high degree of centralization in management; The powers of functional specialists are insignificant and are advisory in nature.

Functional structure. With a functional structure (Fig. 8.2), the heads of functional departments specialize in a certain area of ​​activity and are responsible for the implementation of the relevant functions, and directly give orders to production departments on issues within their competence. The main advantages of the functional structure are the direct influence of specialists on production, a high level of management specialization, in-depth development and justification of decisions made.

Rice. 8.2. Functional structure diagram. The circles indicate performers

The main disadvantage is complexity and inefficiency (many divisions, and therefore management channels).

Experience shows that it is advisable to use a functional structure at 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. Examples of this kind can be enterprises operating in the metallurgical, rubber industries, and in industries producing raw materials.

Along with line managers (directors, heads of branches and workshops), there are heads of functional departments (planning, technical, financial departments, accounting) who prepare draft plans and reports, which turn into official documents after signing by line managers.

This system has two varieties: a shop management structure, characterized by the creation of functional units under the shop manager for the most important production functions, and a shopless management structure, used in small enterprises and characterized by division not into workshops, but into sections.

The main advantage of this structure is that, while maintaining the focus of the linear structure, it makes it possible to specialize the performance of individual functions and thereby increase the competence of management as a whole.

1. Pros:

• removing most of the load from the highest level of management;
• stimulating the development of informal connections at the level of structural blocks;
• reducing the need for general specialists;
• as a consequence of the previous plus - improvement in the quality of products;
• it becomes possible to create headquarters substructures.

• significant complication of connections within the enterprise;
• the emergence of a large number of new information channels;
• the emergence of the possibility of transferring responsibility for failures to employees of other departments;
• difficulty coordinating the activities of the organization;
• the emergence of a tendency towards excessive centralization.

Divisional structure. Currently, in industrialized countries there is a departure from the linear-functional structure (the classic type of this organization has been preserved only in small and medium-sized enterprises operating in traditional areas of business).

Among large companies, the divisional type of organizational structure predominates (Fig. 8.3). According to experts, 95% of the 500 largest American companies have a divisional management structure. The factors that determined the transition to this type of organizational structure include: increased diversification of business activities, specialization of management, international division of labor, increased awareness, self-esteem and expectations of middle managers, etc.

Rice. 8.3. Divisional structure diagram

A divisional organizational structure is characterized by decentralization of management functions: production units have autonomous structures that carry out basic management functions (accounting, planning, financial management, marketing, etc.). This allows production departments to solve independent problems related to the development, production and marketing of their own products. At the same time, the top management of the enterprise can focus on setting and solving strategic problems.

The key figures in the management of organizations with a divisional structure are no longer the heads of functional departments, but managers heading production departments (divisions). Structuring by divisions, as a rule, is carried out according to one of the criteria: by manufactured products (products or services) - product specialization; by targeting certain consumer groups - consumer specialization; by territories served - regional specialization.

Advantages of a divisional structure:

· it provides management of multidisciplinary enterprises with a total number of employees of the order of hundreds of thousands and geographically remote divisions;

· provides greater flexibility and faster response to changes in the environment of the enterprise compared to linear and line-staff;

· when expanding the boundaries of independence of departments, they become “profit centers”, actively working to improve the efficiency and quality of production;

· closer connection between production and consumers.

Disadvantages of the divisional structure:

· a large number of “floors” of the management vertical; between workers and the production manager of a unit - 3 or more levels of management, between workers and company management - 5 or more;

· disunity of headquarters structures of departments from company headquarters;

· the main connections are vertical, so there remain shortcomings common to hierarchical structures - red tape, overworked managers, poor interaction when resolving issues related to departments, etc.;

· duplication of functions on different “floors” and, as a result, very high costs of maintaining the management structure;

· in departments, as a rule, a linear or linear-staff structure with all its shortcomings is preserved.

Conclusion: the advantages of divisional structures outweigh their disadvantages only during periods of fairly stable existence; in an unstable environment, they risk repeating the fate of the dinosaurs. With this structure, it is possible to implement most of the ideas of modern quality philosophy.

Organizational structure, which represents a certain ordering of tasks, roles, powers and responsibilities, creates conditions for the enterprise to carry out its activities and achieve established goals. It develops and changes under the influence of the characteristics of the enterprise's strategy, its internal complexity and changes in the external environment. The wide range of structures extends from stable monolithic formations to dynamic multifaceted structures of modern organizations.

The diversity of organizational structures is associated with differences in the field of activity, the nature and complexity of the products produced, the size, degree of differentiation and territorial location of enterprises. Thus, the structure of a small trade organization or repair shop cannot have anything in common with the structure of a large machine-building enterprise that produces a wide range of machines and equipment. In turn, the organizational structure of a transnational corporation and a financial-industrial group is incomparable. Small enterprises do not have any complex problems with the organizational structure. If the functions at such an enterprise are carried out properly (without an excessive number of services and not necessitated hierarchical structures), then their implementation requires such a limited number of workers that the problems of the structure fade into the background before the problems associated with the personal characteristics of managers (their knowledge, experience, work style, organizational abilities, responsible performance of official duties).

However, problems of organizational structure arise not only in large enterprises. The organization of vertical and horizontal communications and project management is also necessary in medium-sized enterprises. This is directly related to all cases where there is an intermediate management team between the top management of the organization and the personnel performing direct work, as well as when it is generally possible to implement a certain division of labor. Under all conditions, the problem of choosing one or another organizational type arises? structure adequate to the real requirements of the external and internal environment, the tasks of meeting consumer demand, technological and social development, and achieving cost-effective results. Below we consider the main types of organizational structures that have developed to date.

Linear-functional structures

Functional structuring is the most widespread form of organizing activities and occurs in almost all enterprises at one level or another of the organizational structure. It is the process of dividing an organization into separate elements, each of which has a clearly defined, specific task and responsibilities. Creation functional structure (Fig. 9.1) comes down to grouping personnel according to the broad tasks they perform (production, marketing, finance, etc.). The specific characteristics and features of the activities of a particular unit correspond to the most important areas of activity of the entire organization. In cases where the functional structure is used partially, one of the functions (for example, financing) is carried out either at a higher level of management, or at the same level as divisions structured by product, customer or territorial basis.

The importance of the sales, production and financial functions of an enterprise is widely recognized, and they are often taken as the basis for the structure of the organization. The coordination of these functions is determined at a level above which only the head of the enterprise is located. This position is ver-

Rice. 9.1.
Functional management structure

but no matter on what basis the grouping of activities within the enterprise is carried out and how important the functions of a particular unit are. The chain of command comes from the president (chief executive) and permeates the structure from top to bottom. Management of sales organization, financial issues, data processing and other functions that are specific to a particular enterprise is carried out by vice presidents. Managers report to them. And so on down the hierarchical ladder, tasks are subject to further functional division in accordance with processes.

Functional organization aims to stimulate the quality of work and creativity of workers, as well as economies of scale in the production of goods or services. However, maintaining interaction between different functions is a complex task. The implementation of different functions involves different deadlines, goals and principles, which makes coordination and scheduling of activities difficult. In addition, a functional orientation is associated with a preference for standardized tasks, encouragement of narrowly limited perspectives, and reporting on performance.

The functional structure is not suitable for organizations with a wide range of products, operating in an environment with rapidly changing consumer and technological needs, or for organizations operating internationally, simultaneously in several markets in countries with different regulations. The logic of this form is centrally coordinated specialization. It is difficult to trace the contribution of each element of resources to the final result and the overall profitability of the organization. In fact, the modern trend towards disintegration(i.e. purchasing rather than producing components, etc.) reflects the understanding of many firms that the necessary coordination of costs and resources is reflected in performance. A functional organization may fail due to improper modification because the logic of the organization is centralized control, which does not easily adapt to product diversification.

In its pure form, the functional structure is practically not used. It is used in organic combination with linear structure (Fig. 9.2), built on the basis of a vertical management hierarchy and based on the strict subordination of the lower management level to the higher one. With this structure, the performance of highly specialized functions is intertwined with a system of subordination and responsibility for the direct implementation of tasks for the design, production of products and their delivery to consumers (Fig. 9.3). Decentralization of management within linear-functional structure leads to the fact that the division of rights and responsibilities is fragmented between different bodies that manage technical developments, purchase of raw materials, production, sales, etc. This process is most typical for enterprises where a huge number of homogeneous products are consistently produced and economies of scale of production significant. One of the conditions for decentralization of the structure may be a situation when the market

Rice. 9.2.
Linear management structure

Rice. 9.3.
Linear-functional management structure

represents a single whole and is characterized by a high degree of concentration of consumption.

At the same time, the development of diversification of production, the sharp complication of internal and external relations, the dynamism of the introduction of technical innovations, and the fierce struggle for markets for products lead to serious difficulties and in many cases completely exclude the use of functional forms of management. With the growth in the size of corporations, the expansion of the range of products and their sales markets, functional management structures, due to the disunity of rights and responsibilities for individual functions, lose the ability to respond to changes. In the management process, conflicts arise when choosing priorities, decision-making is delayed, communication lines are lengthened, and the implementation of control functions becomes difficult.

Rice. 9.4.
Building an organization according to a linear-functional principle

(grouped by type of activity)

The departure from the use of strictly functional schemes for managing corporations in favor of a divisional structure of organizing activities by departments can be quite clearly seen with the development of diversification of production. However, in practice, a certain restraint is shown regarding decentralization and its acceptable limits are established. This is due to the fact that the negative aspects of excessive freedom of departments and enterprises in choosing areas of production activity and making responsible management decisions have become clearly visible. In many cases, corporate management loses the ability to control the production and economic activities of departments, and complex information problems arise. Therefore, the top managers of many corporations, without abolishing departments that have gained sufficient independence, make significant amendments to their organizational structure, subordinating them to their authority to a much greater extent.

The divisional form can be considered as a combination of organizational units serving a specific market and managed centrally. Its logic lies in the combination of departmental autonomy with a centrally controlled process of resource allocation and evaluation of results. Although divisional firms can easily expand into related industries, there is a danger of overexpansion. Thus, many similar firms that expanded their activities in new markets were unable to properly evaluate their results and make investment decisions. Divisional firms are also exposed to the danger of modifications that violate the chosen logic of the organization's functioning.

It is known that enterprises switching to a product type of structural structure were initially functionally organized. As organizations expanded, managers of production, sales and other departments, as well as technical specialists, were faced with problems of increasing scale of activity. The manager's functions became increasingly complex, and his range of control limited his ability to increase the number of subordinates. Product-based structural reorganization began to be seen as a way out of this situation. This approach allows for the delegation of broad authority by senior management to direct production, sales, support and engineering activities associated with the manufacture of a specific product or range of products. (Fig. 9.5).

Rice. 9.5.
Product management structure

A product or product range is an important feature of structural division, since in this case conditions are created for the use of specialized means of production, coordination is facilitated, and the widest possible use of individual abilities and special knowledge of personnel is allowed. Structuring by product becomes objectively justified if it is important for an enterprise to coordinate various activities related to the production of a product. Due to this structuring, greater consistency of actions is achieved and customer service is improved. If the primary basis of sales activities and technical support is industrial production, then the cooperation of these two functions with production activities acquires key importance.

When structuring by product, responsibility for generating profits rests primarily with department heads. Where managers have control over production, sales, engineering and support activities, and also control the associated costs, the real possibility of achieving predetermined goals increases dramatically. Divisional managers share responsibility for generating profits with other similarly organized groups, which provides senior management with the opportunity to evaluate each individual's contribution to the overall profit of the enterprise.

Division on a territorial basis is a fairly common method of structuring enterprises dispersed over a vast territory. All activities of the enterprise in a given territory are grouped and subordinate to its top manager (Fig. 9.6). Territorial structuring particularly attractive to large, diversified firms. They resort to this form when similar business transactions are carried out in different geographical regions. Territorial structuring is appropriate in cases where its goal is not only to encourage the participation of local units in the decision-making process, but also to save money achieved by localizing the business operations of the enterprise. Her choice is associated with lower costs. The choice of area for locating enterprises can be made based on the desire to reduce transportation costs. The correct location of warehouse premises will reduce the time spent on delivery, which is an important factor that can affect the receipt of orders. Regional offices are seen as the best place for aspiring managers to gain experience. Moreover, at that level of the organizational structure it will be most useful for them with minimal risk for the company.

Rice. 9.6.
Regional organizational structure

From the point of view of local factors, the use of a territorial organizational structure acquires some additional advantages. This causes the creation of new jobs for the local population, not to mention the economic benefits, namely the reduction of transport costs, rent, and labor costs. The advantages of territorial organization of sales activities lie mainly in cost savings and high operational efficiency. Sales staff can spend more time selling products and reduce travel costs. In addition, by being closer to customers, he has the opportunity to study their needs, market preferences and find out which market strategy will have the greatest chance of success. In large diversified companies, divisional structures of a mixed type appear, combining both product and territorial principles of construction (Fig. 9.7).

One of the noticeable trends in the organizational restructuring of enterprises in a transition economy is a significant increase in the independence of individual parts of management structures and the creation of subsidiaries on this basis. A network of small mobile firms is being formed around large enterprises, capable of quickly adapting their applications.

Rice. 9.7.
Mixed divisional management structure

responsive to changing demand. Thanks to this, enterprises producing products are brought closer to the consumer sector, and the process of selling products is accelerated. From the production and organizational structure of many large enterprises, divisions with a full production cycle are distinguished. On the one hand, independent economic entities are created, focused on specific consumers, and on the other hand, the integrity of the production and technological complex, the general focus and profile of its activities are preserved.

An equally significant trend is the formation of independent commercial organizations that use the property of the base enterprise on the basis of rental relations. By periodically adjusting lease agreements, a certain coordination of the activities of newly created organizations is ensured. Retention of ownership of the base enterprise makes it possible to maintain and develop the production system as a whole. Below is a comparative assessment of the advantages and disadvantages of linear-functional and divisional organizational structures, which allows, taking into account the characteristics of specific conditions, to determine the possibilities of using one or another form of organizational structure (Table 9.1).

Table 9.7

Comparative characteristics of organizational management structures

Collegial bodies

When using different types of organizational structures, collegial forms of work become important. These are committees, task forces, commissions, councils, and collegiums. Of course, these forms do not represent any distinct type of structure. They can be permanent or temporary, have different status, level of authority granted and perform different tasks in the organization. Collegial bodies often endowed with the authority to make certain decisions, exercise leadership (or delegate authority to exercise leadership). There is a well-known practice of forming such bodies to perform advisory functions, i.e. presenting a reasoned opinion on a particular issue to a manager at any level. Let us consider in more detail the issues of organizing their activities and the level of authority.

1. Collegial body of informational nature. At meetings of this body, contacts between heads of departments are carried out. Their general leader informs the meeting participants about the current situation, about the decisions made and planned. As a result, methods for implementing solutions can be clarified. Information bodies are needed primarily at the highest levels of management. Their use at lower levels serves to improve mutual understanding, in particular between specialists (or employees of functional departments) and line managers. The activities of such a body are intended to lead to strengthening ties and improving personal relationships.

2. Collegial advisory body. Such a body (committee, expert council, etc.) may have the task of studying a problem and presenting a conclusion about it. It does not replace, but complements the activities of existing expert specialists in the organization. It is necessary to distinguish between bodies engaged in research and bodies that use the research conducted to draw up their conclusions. An advisory body may carry out its activities with the help of specialists or experts when it becomes possible to combine their knowledge on a particular complex problem. There are cases when the head of an organization gathers a number of specialists working in advisory and headquarters services for collegial work. At the same time, the issue under consideration is complex and requires the knowledge of various specialists, and the body can perform some coordinating role.

3. A collegial body authorized to make decisions. This kind of body can be used in the absence of a line manager to perform this function, as well as to assist the line manager in making particularly important decisions. For example, there are committees that make decisions on the overall policy of the organization. Such a body is headed by the highest leader of the organization, and the heads of the most important departments and experts included in it play a very active role.

4. Collegial body exercising control. In relation to managers, such an organizational link primarily performs the role of a body that gives permission to make decisions that meet certain requirements. He also monitors the implementation of these decisions. The activities of collegial bodies can cover various areas of the organization’s activities: 1) decisions related to general strategy and policy; 2) acts of management and administrative actions; 3) direct executive activities that implement decisions made.

The advantages of this organizational form are associated primarily with the collaboration of a group of people. Particular mutual understanding between people is achieved in groups whose members are characterized, as a rule, by the same behavior and even specific skills (line and functional managers, specialists in the field of technology, economics, commercial activities, etc.). At the same time, coordination of the work of various services or employees of the management apparatus is ensured. It is also significant that there is a clash of different points of view of people usually engaged in different types of activities, and most importantly, having unequal training and experience. In many cases, this contributes to the emergence of new ideas. In addition, collegial bodies contribute to the stability of the organization, since they enable a certain number of managers to keep abreast of the problems of related services, and also create conditions for the training of young management personnel.
Features of the internal environment of the management structure Modern organizational structures focused on solving strategic problems of organization development

These structures are based on a functional division of labor. Linear organizational structure extremely simple and had two levels of vertical hierarchy - managers and executors. Information comes from the bottom up - from performers to managers, and decisions are transmitted exclusively from top to bottom, clearly regulating all actions of the performers. The main disadvantage of a linear structure is long information chains that distort information in both directions and reduce efficiency. Characteristic of a centralized planned system, the linear structure is effective in emergency situations (wartime, mobilization economy) provided that the leader is highly competent and willful. In modern organizations, a linear structure is found only in lower production levels (teams, work groups) or at the initial stage of the formation of small enterprises.

Functional organizational structure has become widespread because it is aimed at stimulating quality of work and unleashing the creative potential of employees. The logic of the functional organizational structure is centrally coordinated functional specialization: Each division is aimed at solving the assigned task and clearly fulfilling responsibilities with overall compliance with the direction of the organization’s activities. A staff of specialists is created who are responsible for a certain area of ​​work - production, R&D, marketing, finance, while following the instructions of the functional body within its competence is mandatory for all departments. TO shortcomings functional structure can be classified as:

• - discrepancy between the activities of departments over time, since different functions are implemented differently in relation to time;
• - each functional unit prioritizes its own goals and objectives to the detriment of others;
• - double teams appear, violating the principle of unity of command;
• - the decision-making procedure becomes more complicated: coordination between different functional departments is necessary.

Linear and functional organizational structures in their pure form are practically not used, but form the basis of more common mixed structures, which partially smooth out their shortcomings. One such structure is linear-functional, where linear management between the main production units is complemented by functional management of supporting services, creating a certain decentralization of management. At the top management level, functional services are created to ensure the management of similar services of all subordinate structures of the company (for example, the financial service of a company manages the activities of the financial services of all its divisions), and the divisions carrying out the technological process are connected linearly. At the same time, heads of line services (vice presidents) have, as a rule, greater powers than heads of functional ones. The advantage of a linear-functional structure can be considered the ability to quickly regulate individual aspects of activity under management from a single center, but the solution of operational problems rises to the level of top management and is carried out to the detriment of strategic management, and it is not possible to ensure that individual services understand the general goals of the organization and the full consistency of their activities . The linear-functional structure is typical for industries where significant economies of scale are combined with a large range of products, and the market is relatively homogeneous. At an early stage of development, large companies used a linear-functional management structure (for example, Ford), and as they grew larger, they used it in branches.

Divisional structure (division English - department) appeared as a reaction to the shortcomings of the linear-functional structure and is a more advanced structure of the hierarchical type. The divisional structure appeared at the end

1920s at the enterprises of General Motors, and by the mid-1980s, 95% of the largest companies in the USA, 45% in Japan, were transferred to it, which was facilitated by a sharp increase in the size of companies, the complication of technological processes, diversification and internationalization of activities . The basis of the divisional structure is the separation of large autonomous production and economic divisions (branches), independently managed, responsible for making a profit and having the necessary functional units. At the same time, the centralized solution of strategic tasks at the highest level is combined with decentralized operational management of the activities of the branches. According to A. Sloan, this structure can be characterized as “coordinated decentralization.” The logic of the divisional structure is a combination of divisional autonomy with a centrally controlled process of resource allocation and results assessment. The company is structured into departments by product(in accordance with the product range) or by region(according to the territories where the company operates) (Table 2).

Divisional structure by product solves the problem of coordinating sales and production and is typical for companies with a wide range of products that have production and marketing differences. For each type of product (production and sales), one responsible manager receives authority, controlling the costs of all types of activities for this product and the contribution of each employee to the development of the enterprise and profit, as well as the activities of functional services. Divisional structure by region used by companies that have enterprises with similar production in different regions, requiring the use of different strategies - regional differences are more pronounced than differences in products. Here, branches are created on a territorial basis: the company’s activities in each region are subordinate to one manager who is responsible for it. This structure reduces cross-cultural tensions, allows for better product adaptation and lower costs by selecting a region with lower costs, and local

Table 2

Comparison of divisional

and linear-functional organizational structure

Compiled from: Movsesyan A. G. Transnationalization in the global economy. - M., 2001.

units get the opportunity to participate in decision making. Mixed divisional structure allows, with a wide range of products, to operate in several regions, or to produce a wide range of products in different regions.

The disadvantages of the divisional structure include the opposition of the goals of the departments to the overall development goals of the company, a decrease in the efficiency of resource use and an increase in the costs of maintaining the management apparatus. Advantages of a divisional structure:

• - separation of operational management from strategic management;
• - encouraging the participation of local units in management;
• - training of aspiring managers in regional offices;
• - improving communications and increasing productivity;
• - cost savings due to localization of the company’s commercial operations.

To strengthen control over the activities of individual services, the divisional structure is often combined with the linear functional one, forming a synthetic functional divisional structure. The company organizes groups of various directions - production ( profit centers), sales ( implementation centers), financial ( investment centers), Moreover, the functional services of subsidiaries are dually subordinate to the functional management of the parent company and the head of the subsidiary company. Strategic business units are organizational units of a company responsible for developing its strategy in a particular area of ​​business. This structure was used by General Electric, which divided 190 areas of activity into 43 strategic groups.

Organizational structure of enterprise management (linear, functional, divisional and adaptive)

The functions of managing the activities of an enterprise are implemented by divisions of the management apparatus and individual employees, who at the same time enter into economic, organizational, social, psychological and other relationships with each other. The organizational relationships that develop between departments and employees of the enterprise's management apparatus determine its organizational structure.

The organizational structure of enterprise management is understood as the composition (list) of departments, services and divisions in the management apparatus, their systematic organization, the nature of subordination and accountability to each other and to the supreme management body of the company, as well as a set of coordination and information links, the procedure for distributing management functions at various levels and divisions of the management hierarchy.

The basis for building an organizational structure for enterprise management is the organizational structure of production. The variety of functional connections and possible ways of their distribution between departments and employees determines the variety of possible types of organizational structures for production management. All these types come down mainly to four types of organizational structures: linear, functional, divisional and adaptive.

The ability of an enterprise to adapt to changes in the external environment is influenced by how the enterprise is organized and how the management structure is built. The organizational structure of an enterprise is a set of links (structural divisions) and connections between them. The choice of organizational structure depends on factors such as: the organizational and legal form of the enterprise, the scope of activity (type of products, its range and range), the scale of the enterprise (production volume, number of personnel), the markets that the enterprise enters in the process of economic activity, technologies used, information flows inside and outside the company, degree of relative resource endowment, etc.

When considering the organizational structure of enterprise management, they also take into account the levels of interaction: the organization with the external environment, the divisions of the organization, the organization with people. An important role here is played by the structure of the organization through which and through which this interaction is carried out. The structure of a company is the composition and relationship of its internal links and departments.

The organizational structure regulates:

§ division of tasks into departments and divisions;

§ their competence in solving certain problems;

§ general interaction of these elements.

Thus, the company is created as a hierarchical structure.

Basic laws of rational organization:

§ ordering tasks in accordance with the most important points of the process;

§ bringing management tasks into line with the principles of competence and responsibility, coordination of the “solution field” and available information, the ability of competent functional units to take on new tasks);

§ mandatory distribution of responsibility (not for the area, but for the “process”);

§ short control paths;

§ balance of stability and flexibility;

§ ability for goal-oriented self-organization and activity;

§ the desirability of stability of cyclically repeated actions.

Let's consider a linear organizational structure. It is characterized by a vertical: top manager - line manager (divisions) - performers. There are only vertical connections. In simple organizations there are no separate functional divisions. This structure is built without highlighting functions.

Linear management structure

Advantages: simplicity, specificity of tasks and performers.

Disadvantages: high requirements for the qualifications of managers and high workload of the manager. The linear structure is used and effective in small enterprises with simple technology and minimal specialization.

With the further complication of production, the need arises for the specialization of workers, sections, departments of workshops, etc., and a functional management structure is formed. Work is distributed according to functions.

With a functional structure, the organization is divided into elements, each of which has a specific function and task. It is typical for organizations with a small nomenclature and stable external conditions. There is a vertical here: manager - functional managers (production, marketing, finance) - performers. There are vertical and inter-level connections.

Functional management structure

Advantages: deepening specialization, improving the quality of management decisions; ability to manage multi-purpose and multi-disciplinary activities.

Disadvantages: the manager’s functions are blurred, lack of flexibility; poor coordination of the actions of functional units; low speed of making management decisions; lack of responsibility of functional managers for the final result of the enterprise.

In large companies, to eliminate the shortcomings of functional management structures, the so-called divisional management structure is used. The distribution of responsibilities occurs not by function, but by product or region. In turn, divisional departments create their own units for supply, production, sales, etc. In this case, prerequisites arise for relieving senior managers by freeing them from solving current problems. The decentralized management system ensures high efficiency within individual departments.

Disadvantages: increased costs for management personnel; complexity of information connections.

The divisional management structure is built on the basis of the allocation of divisions, or divisions. This type is currently used by most organizations, especially large corporations, since it is impossible to squeeze the activities of a large company into 3-4 main departments, as in a functional structure. However, a long chain of commands can lead to uncontrollability. It is also created in large corporations.

Divisional management structure

Divisions can be distinguished according to several characteristics, forming structures of the same name, namely:

§ Grocery. Departments are created by type of product. Characterized by polycentricity. Such structures have been created at General Motors, General Foods, and partly at Russian Aluminum. The authority for the production and marketing of this product is transferred to one manager. The disadvantage is duplication of functions. This structure is effective for developing new types of products. There are vertical and horizontal connections;

§ Regional structure. Departments are created at the location of company divisions. In particular, if the company has international activities. For example, Coca-Cola, Sberbank. Effective for geographical expansion of market areas;

§ Customer-oriented organizational structure. Divisions are formed around specific consumer groups. For example, commercial banks, institutes (advanced training, second higher education). Effective in meeting demand.

Adaptive organizational structure - flexible structures that can change (adapt) to the requirements of the environment (by analogy with living organisms). It is adaptive organizational structures that are able, using all the effective aspects of linear and functional structures, to successfully function in a constantly changing world.

The following types of adaptive organizational structures are distinguished:

* design- a temporary structure created to solve a specific problem. The meaning of this structure is to gather all specialists into one team to solve the problem, implement the project efficiently and in a short time, after which the project structure is dissolved;

Project management structure

* matrix- functional-time-target structure. This is a special type of organization, entirely built on a project type, operating for a long time, which is typical for organizations that constantly exist in project form.

Management for individual areas of the organization’s activities is built vertically, and project management is carried out horizontally. The matrix structure is characterized by the creation of connections between specialists, the organization of work on certain tasks, regardless of position in the organization, or involvement in a specific unit.

Matrix management structure

Advantages of a matrix organizational structure: intensification of the activities of managers through the creation of program units and a sharp increase in contacts with functional units, flexible use of the organization’s personnel potential.

The disadvantages of this type of structure are the complexity of the structure itself, caused by the imposition of a large number of vertical and horizontal connections, as well as the difficulty of managing the organization in a situation where there is no unity of command.

In conclusion, let's summarize:

The management structure creates coordination mechanisms that ensure the effective achievement of the overall goals and objectives of the organization. Management structure is an ordered set of connections between units and employees engaged in solving the management problems of the organization.

The management structure is characterized by such concepts as complexity, levels of formalization and centralization, and coordination mechanisms. There are two main approaches to building a management structure: hierarchical (bureaucratic) and organic. The choice of management structure is carried out taking into account the organization’s development strategy, its size, technology, and environmental characteristics. There are several types of management structures: linear, functional, divisional, project.

However, none of the listed management structures is used in its pure form, with the exception of the linear one, and then only in a small enterprise. The vast majority of enterprises use a mixed type of management. In some cases, this is a simple combination of the four forms listed, when at the lower level - at the brigade level - a linear form is used, on average - at the workshop level - a functional form, and at the enterprise level - a linear-functional and partially matrix form. More often, however, there is a synthesis of various forms when they act jointly at all levels of the economic hierarchy.