Functional diagram of enterprise management. Organizational structure of enterprise management. Disadvantages of the project management structure
Functional structure of the enterprise
According to the spheres of functioning of the organization, many different structures can be distinguished, corresponding to the types of activity. For example, at industrial enterprises it is possible to determine the basic and specific functional structures: technological, organizational and managerial, economic and socio-psychological; structures of information, material, financial, human and other flows. Let's consider the main functional structures.
The technological structure of an organization is a set of links between the technological process of manufacturing products, design and technological preparation of production, and organization of production services. An example of a technological structure is shown in Fig. 3.2.
Organizational and managerial structure is a set of vertical and horizontal ties that ensure orderliness, coordination and regulation of the organization's activities to achieve "its goals. The basis of the organizational and managerial structure is the relationship of hierarchical subordination. They, in turn, affect the organizational and managerial relations of direct interaction , both on the vertical - between the higher and lower levels of management, and on the horizontal.
The organizational and management structure is informational. The main information flows are as follows:
Vertically "from top to bottom" - planned, normative "instructive, guiding information;
Vertically "from bottom to top" - analytical, recommendatory, accounting and statistical information, etc .;
Horizontally - information, provides mutual coordination and horizontal integration of activities.
A component of the organizational and management structure is the management structure of the organization. Along with the structure of the organization's management, there may be structures for certain types of information flows. The main functional structures of the organization include technological, organizational and managerial, economic and socio-psychological structures (that is, structures that cover all aspects of the organization's activities) and the organizational and managerial component of the organization, it is advisable to present it in the form of a management system.
The economic structure is a set of relations of economic interaction of individual members of the organization with each other in terms of: fulfilling the mission, achieving goals, allocating resources, paying for labor, distributing the income received between owners, managers, specialists and employees, and the like.
The socio-psychological structure of an organization is a set of vertical and horizontal connections that characterize the socio-psychological aspects. It includes:
The structure of relations of hierarchical subordination, which establishes the social status of each member of the organization;
The structure of direct socio-psychological interactions between functional, professional, qualification groups, teams of departments, groups of informal communication, individuals.
Types of organizational structures of enterprise management
Organizational structure is a set of departments and services that carry out the construction and coordination of the functioning of the management system, the development and implementation of management decisions for the implementation of a business plan, an innovative project.
The main factors that determine the type, complexity and hierarchy of the organizational structure of an enterprise are:
Production scale and sales volume;
Range of products;
The complexity and level of product unification;
The level of specialization, concentration, combination and cooperation of production;
The degree of infrastructure development in the region;
International integration of the enterprise, etc. The structure of the organization, depending on the specified factors
can be linear, functional, linear with headquarters control, linear with cross functions, matrix, problem-target.
The most clear form of the organizational structure of enterprise management is a linear system (Fig. 3.3), based on the principle of unity of assignment distribution formulated by A. Fayol. According to this principle, only the higher authority has the right to issue orders. All other departments are included in the service line. Starting from the head of the enterprise and up to the lowest step of the hierarchical ladder, a single line of management is drawn, it has several intermediate steps. Work planning and control over their execution are carried out vertically from the head to production units performing managerial functions.
The use of such an organizational management structure is advisable for small businesses. It allows you to create clear and visual relations between higher authorities and subordinates in enterprises, but the use of this system leads to significant workloads for individual intermediate authorities.
The management of an enterprise is often overwhelmed, orders are carried out and transmitted very slowly, since it does not have the ability to independently develop all the decisions to the smallest detail and must delegate certain powers to lower authorities or give them considerable freedom in making decisions.
The disadvantages of a linear system can be avoided by reducing the intermediate instances in the transmission of orders for the regulation of certain processes and keeping them only for the transmission of orders and instructions.
When using the functional structure of enterprise management, the transfer of orders is not carried out by instances, but depending on the type of tasks assigned (Figure 3.4). This means that work planning and control over their implementation is carried out by functional units, and work is performed by production units for each function.
For the application of the functional structure, the principles of the unity of management and distribution of tasks are violated, which leads to duplication of functions and powers. Such a management system is acceptable for a medium-sized enterprise.
The advantages of the functional structure of the organization of the enterprise are: stimulation of business and professional specialization; reduction of duplication of functions and consumption of material resources in functional areas; improved coordination in functional areas. The disadvantages of the functional structure include: increasing the possibility of conflicts between functional areas; lengthening the chain of commands from the leader to the direct executor.
If it is necessary to preserve the unity of management and execution, it is lost in the functional system, and the long division of labor forces us to single out certain tasks, then you can save the transfer of instructions by instances (linear structure) and instruct
separate functions for headquarters, which can take on certain tasks, but do not have the authority to issue orders. That is, it is necessary to introduce a linear system of organization according to the headquarters management body, it is a combination of a linear system with a system for allocating certain functions (Figure 3.5).
The goal of the headquarters in this system is to take on some of the powers of the head (preparation and information support of decisions made, prompt adjustment and control over their implementation), and all the rights for leadership and execution remain in the relevant division of the organization.
The advantage of the linear system of organization by the headquarters management body is that strict adherence to the transfer of the task is combined with the simultaneous use of the knowledge of specialists. The disadvantage is that such an organizational structure does not preclude the emergence of conflicts. This is due to the preparation of a decision at the headquarters and its adoption by the line manager, while the headquarters, preparing the decision, cannot control it and thus is not responsible for its implementation.
A linear system can be transformed into such a form when cross (transverse) functions are formed (Fig. 3.6).
At the same time, the movement remains in the chain of command, but certain functions throughout the enterprise (personnel policy, accounting and reporting, production preparation, planning, control) are not assigned to headquarters without the right to give orders, but to functional areas with the authority to give orders. This leads to the fact that the competence of the management for certain processes is divided. For example, the head of the personnel department (head of the line instance) and the head of the technical department (head of the functional department) have the right to jointly make decisions on hiring workers for the corresponding department of the enterprise, while in one of these instances he is not entitled to independently make decisions, and in the absence of the agreement must be intervened by a higher authority.
In the context of a combination of organizational structures, function-oriented, matrix management structures arise (Figure 3.7).
For example, in an industrial enterprise, products are developed by the design, production and development departments, cooperate with the supply, sales, and personnel departments in such a way that top management does not interfere with the activities of these departments. Each department at its level has full decision-making power. The advantage of the matrix system is the ability to use the existing knowledge of specialists for the implementation of innovative processes.
Further development of the organizational structure in modern conditions is based on the influence of the following factors:
Development of specialization and cooperation of production;
Control automation;
Application of a set of scientific approaches to the design of the structure and functioning of the management system;
Compliance with the principles of rational organization of production processes (proportionality, direct flow, etc.);
Ensuring mobility and adaptability of the structure to changes;
Providing marketers with coordination of solving problems to achieve the competitiveness of specific products.
Thus, the structure is determined by the number and detail of the development of the principles of requirements for its formation, the structure of the goal tree, the content of the provisions on departments and job descriptions. In fig. 3.8. the problem-target organizational structure is shown, taking into account the specified conditions. The number of departments, workshops and other divisions, their structure and number depend on the volume of sales, nomenclature, complexity and scale of products, the level of specialization, cooperation, concentration, combination of production and other factors. At the first level of the enterprise management hierarchy is the deputy director for marketing, technical director, commercial director, deputy for production, deputy for social issues. At the second level of the structure, there can be various departments and workshops. At the third level, bureaus or groups in departments are created, if necessary, for specific problems, functions, products or markets.
The proposed problem-target management structure has all the advantages of the previously considered structures and at the same time does not have obvious disadvantages. The problem-target structure provides a high level of specialization of workers performing a specific goal (task) of the goal tree. It is associated with the structure of the management system, simple in construction and operation, has a body that coordinates the solution of problems to achieve the competitiveness of goods, adapted to changes.
The forms and methods of implementing the principles of forming organizational structures allow us to distinguish several of their types. So, according to the level (degree) of differentiation and integration of management functions, two classes of structures are distinguished:
- mechanistic, or bureaucratic, pyramidal, based on a centralist type of integration;
- organic, or adaptive, multidimensional, based on a combination of centralist and free types of integration.
Mechanistic (bureaucratic) pyramidal structures
Stability and rationalism were the priority parameters for the formation of bureaucratic structures for managing organizations already at the beginning of the 20th century. The concept of bureaucracy, then formulated by the German sociologist Max Weber, contains the following characteristics of a rational structure:
- a clear division of labor, which leads to the emergence of highly qualified specialists in each position;
- hierarchy of management levels, in which each lower level is controlled by a higher level and obeys him;
- the presence of an interconnected system of generalized formal rules and standards, which ensures uniformity in the performance by employees of their duties and the coordination of various tasks;
- formal impersonality of the performance of official duties by officials;
- hiring in strict accordance with qualification requirements; protection of employees from arbitrary dismissals.
Pyramidal bureaucratic structures include: linear, functional, linear-functional, line-staff, divisional organizational structures.
Linear organizational structure of management
The linear structure implements the principle of one-man command and centralism, provides for the performance by one leader of all management functions, subordination to him as one-man command of all subordinate divisions (Fig. 11.1).
This is one of the simplest organizational management structures. In linear structures, hierarchy is clearly manifested: at the head of each structural unit is a leader, endowed with all powers, exercising sole leadership of the employees subordinate to him and concentrating all management functions in his hands.
In linear management, each link and each subordinate has one leader, through which all management commands pass through one channel at a time. In this case, management links are responsible for the results of all activities of the managed objects. It is about the object-by-object allocation of managers, each of whom performs all types of work, develops and makes decisions related to the management of this object.
Since in the linear management structure decisions are passed along a chain from top to bottom, and the manager of the lower management level is subordinate to the manager of a higher level above him, a kind of hierarchy of leaders of this particular organization is formed (for example, the head of the section, the head of the department, the director of the store, the foreman of the site, the engineer , shop manager, director of the enterprise). In this case, the principle of one-man management operates, the essence of which is that subordinates carry out the orders of only one leader. In a linear management structure, each subordinate has his own boss, and each boss has several subordinates. Such a structure functions in small organizations, and in large ones - at the lowest management level (section, team, etc.).
The linear organizational structure of management has its advantages and disadvantages (Table 11.1).
Table 11.1
| Advantages | disadvantages |
|---|---|
|
|
In functional structures, functional units are created, endowed with authority and responsibility for the results of their activities. Linear links differ from functional ones by the integration of object management functions, a set of powers and responsibilities. The bottom line is that the implementation of certain functions on specific issues is entrusted to specialists, i.e. each governing body (or performer) is specialized in the performance of certain types of management activities. In an organization, as a rule, specialists of the same profile are united into specialized structural units (departments), for example, a planning department, accounting, etc. Thus, the overall task of managing the organization is divided, starting from the middle level, according to the functional criterion. Hence the name - the functional management structure (Fig. 11.2). Instead of universal managers who must understand and perform all management functions, a staff of specialists appears who have high competence in their field and are responsible for a certain direction (for example, planning and forecasting).
The functional structure implements the principle of division and consolidation of management functions between structural divisions, provides for the subordination of each linear division of the lower level to several higher-level managers who implement management functions. The advantages and disadvantages of this structure are presented in table. 11.2.
Table 11.2
| Advantages | disadvantages |
|---|---|
|
|
Experts point to a close relationship between the size of the firm and the organizational structure of management. The expansion of the size of the enterprise, the complication of internal relationships create conditions, and also necessitate the adoption of complex decisions aimed at restructuring the organization of in-house management, an increase in the size of the company leads to a deepening of structural differentiation (branches, management levels, organizational units).
In turn, this leads to an increase in administrative and management costs, as well as costs associated with coordination, but does not reduce the advantage of homogeneity of large firms, which is due to the fact that these firms are managed from a single center. However, the structural differentiation inherent in large firms requires the use of indirect (economic) methods of management and coordination of the activities of various organizational units.
Types of committees
There is no doubt the advantage of using committees in such work where coordination of actions of management units is required, consultation in decision-making, determination of powers and responsibilities, and development of a work schedule.
New types of organizational structures
Currently, such types of structures are developing as network and virtual organizations, organizations with "internal" markets, multidimensional organizations, market-oriented organizations, entrepreneurial organizations, participatory, adhocratic, intellectual, training organizations, circular corporations, etc.
Networking means that an organization disaggregates its core functions (manufacturing, sales, finance, R&D) between individual contracting companies, with a small parent organization acting as a broker (intermediary). The organizational chart of a hypothetical network organization is shown in Fig. 11.10.
Networked organizations differ from other types of organizations in a number of ways. First, network organizations rely more on market mechanisms than on administrative forms of resource management. Second, many of the newly developed networks assume a more active and engaged role for the participants. Thirdly, in an increasing number of industries, networks are an association of organizations based on cooperation and mutual ownership of shares by group members - manufacturers, suppliers, trading and financial companies.
Closely related to the network structure is the so-called virtual organization or structure. Unlike traditional mergers and acquisitions, partners in virtual organizations share costs, leverage each other's production expertise and access to international markets.
The hallmarks of networked virtual organizations of the future can be summarized as follows:
- using information technology to establish strong contacts;
- joining efforts to realize new opportunities;
- lack of traditional boundaries - with close cooperation of manufacturers, suppliers, customers, it is difficult to determine where one company begins and another ends;
- the main advantages and disadvantages of such organizations are given in table. 11.7;
- trust - partners share a sense of "common destiny", realizing that the fate of each of them depends on the other;
- excellence - since each partner brings their “core competence” to the union, an organization that is modern in every respect can be created.
Table 11.7
| Dignity | disadvantages |
|---|---|
|
|
Multidimensional organization. This term was first used in 1974 by W. Goggin to describe the structure of the Dow Corning corporation. Multidimensional organizations represent an alternative to the traditional type of organizational structure. As we know, in traditional organizational structures, the allocation of organizational units occurs, as a rule, according to one of the following criteria:
- functional (finance, production, marketing);
- grocery (for example, factories or production units that produce various goods and services);
- market (say, by regional principle or by type of consumer).
Depending on the specifics of the activity, one or another criterion prevails in the construction of the organizational structure. Over time, under the influence of external changes and changes in the company itself (its size, scale of activities, other internal factors), the organizational structure of the company itself, and the prevailing principle of separation of divisions, can change. For example, with access to regional markets, the traditional linear-functional structure can be transformed into a regional divisional one. At the same time, reorganization is a rather lengthy and complicated process.
Given the dynamism of the external environment, the company must be able to instantly respond to changes, so a structure is required that does not need to be rebuilt. This structure is a multidimensional organization.
Multidimensional organizations are organizations in which structural units simultaneously perform several functions (as if in several dimensions) (Figure 11.11), for example:
- provide their production activities with the necessary resources;
- produce a certain type of product or service for a specific consumer or market;
- provide sales (distribution) of their products and serve a specific consumer.
The basis of a multidimensional organization is an autonomous working group (department), which implements all three functions: supply, production, distribution.
Such a group can be a “profit center”. Sometimes these can be independent companies.
Departments can easily be included in the organizational structure and can leave it, their viability depends on the ability to produce goods and services that are in demand. Business units focused on a product or service pay internal and external suppliers on a contractual basis. Functional divisions (production, warehouse, personnel, accounting) provide services mainly to other divisions of the company, being suppliers for them. Thus, an internal market appears within the organization. The divisions are flexible in responding to changes in the needs of internal and external consumers. Consumers, on the other hand, automatically control their suppliers. At the same time, the performance indicators of a subdivision do not depend on the indicators of another subdivision, which facilitates the control and assessment of the subdivision's activities.
The features of multidimensional organizations are as follows:
- subdivision budgets are developed by the subdivisions themselves, the company invests funds in them or gives loans;
- in multidimensional organizations there is no double subordination, as in a two-dimensional matrix model, the leadership of the group is one;
- many departments within a multidimensional organization can also be multidimensional. Divisions can also be multidimensional, even if the organization as a whole is not multidimensional (for example, a regional office of a large corporation may have a multidimensional structure, while the corporation as a whole is a divisional structure);
- there is no need for any reorganization of the organizational structure as a whole and the interrelationships of autonomous groups, units can simply be created, liquidated or modified;
- each division of the organization can be completely autonomous, dealing with both recruitment and sales of finished products, etc.;
- the main indicator of the effectiveness of the work of autonomous groups is the profit made; this simplifies the analysis and control over the activities of groups, reduces bureaucracy, and the management system works more efficiently.
The main advantages and disadvantages of multidimensional organizations are shown in table. 11.8.
Table 11.8
| Dignity | disadvantages |
|---|---|
|
|
Circular organization. The basic principle of circular organization is democratic hierarchy. Leaders are not commanders, but rather act as leaders. In contrast to the hierarchical structure of traditional organizations, the circular organization has such features as the lack of undivided authority of the leaders, the possibility of participation of each member of the organization in management, collective decision-making in the management of each member of the organization. These principles are implemented through the peculiarities of the structure of a circular organization, the main of which is that a council is formed around each leader (Figure 11.12).
Each council, in addition to the head of the division, includes his subordinates, as well as third-party representatives - heads of other structural divisions, external clients and consumers, public representatives. Board membership is mandatory for managers, but voluntary for subordinates.
Virtual organization. The emergence of the concept of a virtual organization is associated with the publication in 1992 of the monograph by W. Davidow and M. Malone "The Virtual Corporation".
A virtual organization is a network that includes the unification of human, financial, material, organizational, technological and other resources of various enterprises and their integration using computer networks. This allows you to create a flexible and dynamic organizational system that is best suited to the rapid creation of a new product and its introduction to the market. The virtual organization does not have a geographic center, the functioning of its subdivisions is coordinated with the help of modern information technologies and telecommunications.
The development of information technology has made it possible to make the physical presence of managers at workplaces optional. Virtual associations are grouped by design principle, i.e. on a temporary basis.
as the need arises to create a specific product, implement a project, make a profit. The concept of a virtual organization creates fundamentally new business opportunities and is widely used in the 21st century.
An organization with an “internal market”. The evolution of organizational structures is gradually evolving from hierarchical bureaucratic structures to matrix and project structures, and in recent decades - to decentralized networks and business units.
The concept of "domestic markets" is in stark contrast to the hierarchical structure. On the one hand, it allows you to use the potential of entrepreneurship within the organization, on the other hand, it has the disadvantages of market relations.
The basic principle of such organizations is the wide autonomy of subdivisions (both linear and functional). Subdivisions are considered as autonomous "internal enterprises" that buy and sell goods and services, participate in intra-firm and inter-firm relationships.
Let's list the principles of formation and functioning of organizations with "internal markets":
1. Transformation of the hierarchy into internal business units. All divisions are transformed into autonomous "internal enterprises", becoming responsible for the results of activities.
2. Creation of economic infrastructure, including general reporting, communication and incentive systems.
3. Targeted stimulation of synergy.
4. All departments are accountable for results, and creative entrepreneurship is encouraged. Each business unit is treated as a small, separate company that independently manages its activities and disposes of resources. Departments are given the freedom to conduct business, both internally and externally.
5. Supporting functional units are commercial centers that sell their services both to other units of the firm and to external customers.
So, considering the development trends of organizations and organizational structures, it can be noted that a modern organization is:
- a market-oriented organization. They are organic, highly adaptable divisional or matrix organizations in which all of their parts (R&D, manufacturing, human resources, marketing, procurement, sales, finance, services) are grouped around a market or markets. These are “market-driven” organizations;
- entrepreneurial organization, i.e. an organization that is more focused on growth and on existing opportunities and achievements than on controlled resources;
- participatory organization - an organization that makes the most of the participation of employees in management;
- adhocratic organization - an organization that uses a high degree of freedom in the actions of employees, their competence and ability to independently solve emerging problems. This is an organic structure of a matrix, project, network type, with a predominance of informal horizontal connections. Often the structure of the organization is completely absent, the hierarchical structure is constantly changing, vertical and horizontal ties are predominantly informal;
Analysis of the experience of building organizational structures shows that the formation of management units is significantly influenced by the external and internal environment of the organization. This is the main reason for the impossibility of applying a single model of the management structure for all organizations. In addition, this impossibility is due to the specific characteristics of a particular organization. The creation of a modern effective management structure should be based on scientific methods and principles of building organizational structures.
The main characteristic feature of the new systems of intrafirm management should be: orientation to the long term; conducting fundamental research; diversification of operations; innovative activity; maximum use of the creative activity of the staff. Decentralization, reduction of levels in the management apparatus, promotion of workers and their remuneration depending on real results will become the main directions of changes in the management apparatus.
The process of modification of organizational management structures is developing in a number of specific areas. The main ones are the following.
1. Implementation of the decentralization of production and sales operations. To this end, within the framework of the largest companies, semi-autonomous or autonomous branches have already been created or are being created, fully responsible for profit and loss. All responsibility for the organization of production and marketing activities is entrusted to these departments. Each department fully finances its activities, enters into partnerships on a commercial basis with any organization.
2. Innovative expansion, search for new markets and diversification of operations. This direction is implemented through the creation of innovative firms within the framework of large companies focused on production and independent promotion of new products and technologies in the markets and operating on the principles of "risk financing". It is becoming a widespread practice of large companies to create small enterprises in the most promising areas, aimed at gaining strong market positions in the shortest possible time.
3. De-bureaucratization, a constant increase in the creative production efficiency of personnel. To this end, a variety of measures are being taken, including the distribution of shares among employees and the formation of enterprises that are collectively owned by their employees.
In modern conditions, not only fundamentally new forms of organization for our country are required, not only fundamentally excellent management methods, but also transitional modes of activity, a gradual transformation of some structures into others. In order to comprehensively take into account both the internal characteristics of organizations and dynamically changing external circumstances, as well as emerging progressive trends, it is necessary to use a systematic approach to the formation and reorganization of enterprises.
The systematic approach to the formation of the organizational structure is manifested in the following:
- not to lose sight of any of the management tasks, without the solution of which the implementation of goals will be incomplete;
- to identify and interconnect in relation to these tasks the system of functions, rights and responsibilities along the vertical of management;
- to investigate and organizationally formalize all connections and relationships along the horizontal management, i.e. coordination of the activities of various links and management bodies in the implementation of common current tasks and the implementation of promising cross-functional programs;
- to provide an organic combination of vertical and horizontal management, meaning finding the optimal ratio of centralization and decentralization in management for the given conditions.
All this requires a carefully developed step-by-step procedure for designing structures, a detailed analysis and definition of a system of goals, a thoughtful allocation of organizational units and forms of their coordination, and the development of appropriate documents.
Published with permission from Lanit
"The office reaches perfection just by the time the firm declines."
12th Parkinson's Law
Under the philosophy of management, we mean the most general principles on the basis of which the structure of the organization's management is built and the management processes are carried out. Of course, the philosophy of quality and the philosophy of management are interconnected - the philosophy of quality sets the goal and direction of the organization's activities, the philosophy of management determines the organizational means to achieve this goal. The foundations of the philosophy of management, as well as of the philosophy of quality, were laid by F.W. Taylor.
Both Deming's quality management program and the principles of Total Quality Management are actually aimed at changing the structure of the enterprise management system. Let's consider the main types of enterprise management structures from the point of view of their compliance with the ideas of modern quality management.
The term "organizational chart" immediately conjures up a two-dimensional tree diagram made up of rectangles and lines connecting them to our minds. These rectangles represent the work performed and the responsibilities and thus represent the division of labor in the organization. The relative position of the rectangles and the lines connecting them show the degree of subordination. The relationships considered are limited to two dimensions: up and down and across, since we operate with the limited assumption that the organizational structure should be represented on a two-dimensional diagram drawn on a flat surface.
The organizational structure itself contains nothing that would limit us in this regard. Moreover, these constraints on organizational structure often have serious and costly consequences. Here are just four of them. First, it is not cooperation that arises between individual parts of this kind of organization, but competition. There is more competition within organizations than between organizations, and this internal competition takes on much less ethical forms. Secondly, the usual way of presenting the structure of organizations makes it difficult to define the tasks of individual departments and measure the corresponding performance indicators due to the large interdependence of departments united in this way. Third, it promotes the creation of organizations that are resistant to change, especially changes in their structure; therefore, they degenerate into bureaucratic structures that do not lend themselves to adaptation. Most of these organizations learn very slowly, if at all. Fourth, the presentation of the organizational structure in the form of a two-dimensional tree limits the number and nature of possible solutions to emerging problems. In the presence of such a limitation, solutions are not possible that ensure the development of the organization, taking into account technical and social changes, the pace of which is growing more and more. The current environment requires that organizations are not only ready for any change, but also capable of undergoing it. In other words, dynamic balance is needed. Obviously, to achieve this balance, the organization must have a sufficiently flexible structure. (Although flexibility does not guarantee adaptability, it is nevertheless necessary to achieve the latter).
Building a flexible or otherwise advantageous organizational structure is one of the tasks of the so-called "structural architecture". Using the terminology accepted in architecture, we can say that this abstract sets out the main ideas, on the basis of which various options for solving the problem of the organizational structure can be developed without the restrictions associated with its graphical representation.
The above disadvantages can and should be overcome by building a multidimensional organizational structure. The multidimensional structure implies a democratic principle of governance.
Hierarchical type of management structures
Management structures in many modern enterprises were built in accordance with management principles formulated at the beginning of the twentieth century. The most complete formulation of these principles was given by the German sociologist Max Weber (the concept of rational bureaucracy):
- the principle of hierarchy of management levels, in which each lower level is controlled by a higher level and obeys him;
- the resulting principle of the correspondence of the authority and responsibility of management employees to their place in the hierarchy;
- the principle of division of labor into separate functions and specialization of workers according to the functions performed; the principle of formalization and standardization of activities, ensuring the uniformity of performance by employees of their duties and the coordination of various tasks;
- the principle of impersonality of the performance by employees of their functions arising from it;
- the principle of qualification selection, in accordance with which hiring and dismissal from work is carried out in strict accordance with the qualification requirements.
The organizational structure built in accordance with these principles is called the hierarchical or bureaucratic structure. The most common type of such structure is linear - functional (linear structure).
Linear organizational structure
The basis of linear structures is the so-called "mine" principle of construction and specialization of the management process according to the functional subsystems of the organization (marketing, production, research and development, finance, personnel, etc.). For each subsystem, a hierarchy of services ("mine") is formed, permeating the entire organization from top to bottom (see Fig. 1). The performance of each service is assessed by indicators that characterize the fulfillment of their goals and objectives. Accordingly, the system of motivation and encouragement of employees is being built. In this case, the final result (the efficiency and quality of the organization as a whole) becomes, as it were, secondary, since it is believed that all services to one degree or another work to obtain it.
Fig. 1. Linear management structure
Benefits of a linear structure:
- a clear system of interconnections between functions and departments;
- a clear system of one-man management - one leader concentrates in his hands the leadership of the entire set of processes with a common goal;
- clearly expressed responsibility;
- quick reaction of executive units to direct instructions from their superiors.
Disadvantages of a linear structure:
- lack of links dealing with strategic planning; in the work of managers at practically all levels, operational problems ("turnover") dominate over strategic ones;
- a tendency to red tape and shift responsibility when solving problems that require the participation of several departments;
- little flexibility and adaptability to changing situations;
- the 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 the work of units usually leads to the emergence of an atmosphere of fear and disunity;
- a large number of "control floors" between the workers producing the 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 top managers.
Output: in modern conditions, the disadvantages of the structure outweigh its advantages. This structure is not compatible with the modern philosophy of quality.
Linear - headquarters organizational structure
This type of organizational structure is a linear development and is designed to eliminate its most important drawback associated with the lack of strategic planning links. The line-of-staff structure includes specialized divisions (headquarters) that do not have the right to make decisions and manage any subordinate divisions, but only help the relevant leader in performing certain functions, primarily, the functions of strategic planning and analysis. Otherwise, this structure corresponds to a linear one (Fig. 2).
Fig. 2. Linear - headquarters management structure
Advantages of the line-of-staff structure:
- deeper, than linear, study of strategic issues;
- some unloading of top managers;
- the ability to attract external consultants and experts;
- when empowering headquarters units with functional leadership, such a structure is a good first step towards more efficient organic management structures.
Disadvantages of the line - staff structure:
- insufficiently clear distribution of responsibility, since the persons preparing the decision do not participate in its implementation;
- tendencies towards excessive centralization of management;
- similar to a linear structure, partially - in a weakened form.
Output: the line-of-staff structure can be a good intermediate step in the transition from a linear structure to a more efficient one. The structure allows, albeit to a limited extent, to embody the ideas of the modern philosophy of quality.
Divisional management structure
Already by the end of the 1920s, the need for new approaches to organizing management became clear, associated with a sharp increase in the size of enterprises, the diversification of their activities (versatility), and the complication of technological processes in a dynamically changing environment. In this regard, divisional management structures began to arise, primarily in large corporations, which began to provide a certain degree of independence to their production units, leaving the development strategy, research and development, financial and investment policy, etc., to the management of the corporation. an attempt was made to combine centralized coordination and control of activities with decentralized management. The peak of the introduction of divisional management structures fell on the 60s - 70s (Fig. 3).
Fig. 3. Divisional management structure
The key figures in the management of organizations with a divisional structure are no longer the heads of functional departments, but the managers who head production departments (divisions). Structuring by divisions, as a rule, is carried out according to one of the criteria: by products (products or services) - product specialization; by focus on certain groups of consumers - consumer specialization; for the served territories - regional specialization. In our country, similar management structures have been widely introduced since the 60s in the form of the creation of production associations.
Divisional structure advantages:
- it provides management of diversified enterprises with a total number of employees of the order of hundreds of thousands and geographically remote subdivisions;
- provides greater flexibility and faster response to changes in the enterprise environment in comparison with linear and line - staff;
- with the expansion of the boundaries of independence of departments, they become "profit centers", actively working to improve the efficiency and quality of production;
- closer connection of production with consumers.
Disadvantages of a divisional structure:
- a large number of "floors" of the management vertical; between workers and the production manager of the division - 3 or more management levels, between workers and the company's management - 5 or more;
- the disunity of the headquarters structures of the branches from the headquarters of the company;
- the main ties are vertical, therefore, there remain common for hierarchical structures shortcomings - red tape, overworked managers, poor interaction in resolving issues related to divisions, 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 their shortcomings is preserved.
Output: 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 dinosaurs. With this structure, it is possible to embody most of the ideas of the modern philosophy of quality.
Organic type of governance structures
Organic or adaptive management structures began to develop around the end of the 70s, when, on the one hand, the creation of an international market for goods and services sharply exacerbated competition among enterprises and life demanded from enterprises high efficiency and quality of work and a quick reaction to market changes, and on the other hand, the inability of hierarchical structures to meet these conditions has become obvious. The main property of organic management structures is their ability to change their shape, adapting to changing conditions. Varieties of structures of this type are design, matrix (program-target), brigade forms of structures ... When implementing these structures, it is necessary to simultaneously change the relationship between the divisions of the enterprise. If, however, the system of planning, control, resource allocation, leadership style, methods of personnel motivation is maintained, and the desire of employees for self-development is not supported, the results of the introduction of such structures may be negative.
Brigade (cross - functional) management structure
The basis of this management structure is the organization of work by working groups (teams). The form of the brigade organization of work is a rather ancient organizational form, it is enough to recall the workers' artels, but only since the 80s its active application began as a structure for managing an organization, in many respects directly opposite to the hierarchical type of structures. The basic principles of such a management organization are:
- autonomous work of working groups (brigades);
- independent decision-making by working groups and horizontal coordination of activities;
- replacement of rigid administrative ties of a bureaucratic type with flexible ties;
- involvement of employees from different departments for the development and solution of tasks.
These principles are destroyed by the rigid distribution of employees inherent in hierarchical structures among production, engineering, economic and management services, which form isolated systems with their own goals and interests.
In an organization built on these principles, functional units can be retained (Fig. 4) or absent (Fig. 4). In the first case, employees are under double subordination - administrative (to the head of the functional unit in which they work) and functional (to the head of the working group or team they are part of). This form of organization is called cross-functional , in many ways it is close to matrix ... In the second case, there are no functional units as such, we will call it properly brigade ... This form is widely used in the organization. project management .
Fig. 4. Cross - functional organizational structure
Fig. 5. The structure of the organization, consisting of working groups (brigade)
Advantages of the brigade (cross-functional) structure:
- reduction of the management staff, improvement of management efficiency;
- flexible use of personnel, their knowledge and competence;
- work in groups creates conditions for self-improvement;
- the ability to apply effective methods of planning and management;
- the need for a wide range of specialists is reduced.
Disadvantages of the brigade (cross-functional) structure:
- complication of interaction (especially for a cross-functional structure);
- difficulty in coordinating the work of individual teams;
- high qualification and responsibility of personnel;
- high requirements for communications.
Output: This form of organizational structure is most effective in organizations with a high level of qualification of specialists with their good technical equipment, especially in combination with project management. This is one of the types of organizational structures in which the ideas of modern philosophy of quality are most effectively embodied.
Project management structure
The main principle of building the project structure is the concept of the project, which means any purposeful change in the system, for example, the development and production of a new product, the introduction of new technologies, the construction of facilities, etc. start and end. For each project, labor, financial, industrial, etc. resources are allocated, which are managed by the project manager. Each project has its own structure, and project management includes defining its goals, forming a structure, planning and organizing work, coordinating the actions of performers. After the project is completed, the project structure falls apart, its components, including employees, move to a new project or are fired (if they worked on a contract basis). In form, the project management structure can correspond to the following: brigade (cross-functional) structure and divisional structure , in which a certain division (department) does not exist permanently, but for the duration of the project.
Benefits of a project management structure:
- high flexibility;
- reduction in the number of management personnel compared to hierarchical structures.
Disadvantages of the project management structure:
- very high requirements for the qualifications, personal and business qualities of the project manager, who must not only manage all stages of the project life cycle, but also take into account the place of the project in the company's project network;
- splitting resources between projects;
- the complexity of the interaction of a large number of projects in the company;
- complication of the development process of the organization as a whole.
Output: the advantages outweigh the disadvantages in enterprises with a small number of concurrent projects. The possibilities of implementing the principles of modern philosophy of quality are determined by the form of project management.
Matrix (program - target) management structure
Such a structure is a network structure built on the principle of double subordination of performers: on the one hand, to the immediate head of the functional service, which provides personnel and technical assistance to the project manager, on the other hand, to the project manager or target program, who is endowed with the necessary powers to implement the management process. With such an organization, the project manager interacts with 2 groups of subordinates: with permanent members of the project group and with other employees of functional departments who are subordinate to him temporarily and on a limited range of issues. At the same time, their subordination to the direct heads of divisions, departments, services is preserved. For activities that have a clearly defined beginning and end, they form projects, for permanent activities - target programs. In an organization, both projects and targeted programs can coexist. An example of a matrix program-target management structure (Toyota) is shown in Fig. 6. This structure was proposed by Kaori Ishikawa in the 70s and, with minor changes, functions to this day, not only at Toyota, but also at many other companies around the world.
Targeted programs are managed at Toyota through functional committees. For example, when a functional committee in the field of quality assurance is created, a quality management representative is appointed by the chairman of the committee. From the practice of Toyota, the number of committee members should not exceed five. The committee includes both employees of the quality assurance department and 1-2 employees of other departments. Each committee has a secretariat and appoints a secretary to conduct business. The main issues are considered by the committee at monthly meetings. The committee can also create teams to work on individual projects. The Quality Committee defines the rights and responsibilities of all departments related to quality issues and establishes a system of their relationships. On a monthly basis, the quality committee analyzes the quality assurance indicators and examines the reasons for complaints, if any. At the same time, the committee is not responsible for quality assurance. This task is solved directly by each department within the vertical structure. It is the responsibility of the committee to combine vertical and horizontal structures to improve the performance of the entire organization.
Fig. 6. Matrix management structure at Toyota
Matrix structure advantages:
- better focus on project (or program) goals and demand;
- more efficient day-to-day management, the ability to reduce costs and increase the efficiency of resource use;
- more flexible and effective use of the organization's personnel, special knowledge and competence of employees;
- the relative autonomy of project teams or program committees contributes to the development of decision-making skills, management culture, professional skills in employees;
- improving control over individual tasks of a project or target program;
- any work is organizationally formalized, one person is appointed - the "owner" of the process, serving as the center of concentration of all issues related to the project or target program;
- the response time to the needs of a project or program is reduced, since horizontal communications and a single decision-making center have been created.
Disadvantages of matrix structures:
- the difficulty of establishing clear responsibility for work on the instructions of the unit and on the instructions of a project or program (a consequence of double subordination);
- the need for constant monitoring of the ratio of resources allocated to departments and programs or projects;
- high requirements for qualifications, personal and business qualities of employees working in groups, the need for their training;
- frequent conflict situations between heads of departments and projects or programs;
- the possibility of violation of the rules and standards adopted in functional divisions due to the isolation of employees participating in a project or program from their divisions.
Output: the introduction of a matrix structure gives a good effect in organizations with a sufficiently high level of corporate culture and qualifications of employees; otherwise, disorganization of management is possible (at Toyota, the implementation of the matrix structure took about 10 years). The effectiveness of the implementation of the ideas of the modern philosophy of quality in such a structure has been proven by the practice of Toyota.
Multidimensional organizational structure
Any organization is a purposeful system. In such a system, there is a functional division of labor between its individuals (or elements) purposefulness of which is associated with the choice of goals, or desired outcomes, and means ( lines of conduct). This or that line of behavior involves the use of certain resources ( input quantities) for the production of goods and the provision of services ( output quantities), which for the consumer should be of greater value than the resources used. The resources consumed include labor, materials, energy, production capacity and cash. This applies equally to public and private organizations.
Traditionally, the organizational structure encompasses two types of relationships:
a responsibility(who is responsible for what) and subordination(who reports to whom). An organization with such a structure can be represented as a tree, while responsibilities are depicted by rectangles, the relative position of which shows level of authority, and the lines connecting these rectangles are distribution of powers... However, such a view of the organizational structure does not contain any information about the cost at what cost and with the help of the means of the organization, it was possible to achieve certain results. At the same time, a more informative description of the organizational structure, which can serve as the basis for more flexible ways of structuring an organization, can be obtained on the basis of matrices of the type costs - output or type means - ends... Let us illustrate this with the example of a typical private corporation that produces some product.
Product information can be used to define the goals of an organization. To do this, for example, you can classify products by their types or quality characteristics. The structural elements responsible for ensuring the production of products or the provision of services by a consumer outside the organization are called programs and denote P1, P2 ,. ... ... , Pr. Funds used by programs (or activities) can usually be divided into operations and services.
Operation- This is a type of activity that directly affects the nature of the product or its availability. Typical operations (O1, O2,..., Om) are the purchase of raw materials, transportation, production, distribution and marketing of products.
Services- these are the activities required to provide programs or perform an operation. Typical services (S1, S2,..., Sn) are work performed by departments such as accounting, data processing, technical services, labor dispute resolution, finance, human resources, legal services.
Activities carried out within the framework of the program and within the framework of actions for its implementation can be represented as in Fig. 7 and 8. The results of each separate type of activity can be used directly by the same type of activity, programs and other types of activity, as well as by the executive body and an external consumer.
General programs can be subdivided into private ones, for example, by the type of consumer (industrial or individual), the geographic area supplied or served, by types of products, etc. Private programs, in turn, can also be further subdivided.
| Programs / Activities | Р1 | P2 | . . . | Pk |
| Operation Q1 | ||||
| Operation Q2 | ||||
| . . . . | ||||
| Operation Qm | ||||
| S1 service | ||||
| Service S2 | ||||
| . . . . | ||||
| Service Sm |
Fig. 7. Scheme of interaction of activities and programs
| Consumer units / Consumer units | Operation Q1 |
Operation Q2 |
. . . . | Operation Qm |
Service S1 |
S2 | . . . . | Sn |
| Operation Q1 | ||||||||
| Operation Q2 | ||||||||
| Operation Qm | ||||||||
| S1 service | ||||||||
| Service S2 | ||||||||
| . . . . | ||||||||
| Sn service |
Rice. 8. Scheme of interaction of activities
Similarly, you can carry out the detailing of the types of activities of activities. For example, manufacturing operations for an item can include the production of parts, sub-assemblies, and assembly, each of which can be broken down into smaller operations.
If the number of programs, as well as main and auxiliary activities (operations and services) is so large that the manager is not able to effectively coordinate, then there may be a need for coordinators within specific management functions (Figure 9). More than one focal point or coordination unit may be required for each activity line. In cases where the number of coordinators turns out to be too large, it is possible to use higher coordinators or coordination units ( in this context, "coordination" means precisely coordination, but not management). To carry out coordination, a group consisting of chiefs of coordinating units and managers is quite sufficient.
Fig. 9. Coordination structure in large organizations
Certain requirements are imposed on programs as well as on functional units. Programs and functional units can be grouped by product type, consumer type, geographic area, etc. unconventional the use of characteristics of geographic location as an additional dimension of the volumetric diagram of the organizational structure (Fig. 10). In this case, it becomes necessary in regional representatives whose duty is to protect the interests of those who consume products or are influenced by the activities of the organization as a whole. Regional representatives play the role of external intermediaries who can assess the programs and different areas of the organization's activities in each specific region from the point of view of those whose interests they represent. In the future, this information can be used by the governing body, coordinators and heads of departments. By receiving such information simultaneously from all regional representatives, the manager can get a complete picture of the effectiveness of his program in the entire service area and in each region. This allows him to more rationally allocate available resources across regions.
However, geographical location is not the only criterion for organizing the activities of external intermediaries; other criteria can be used as well. For example, an organization supplying lubricants to various industries should have representatives not by region, but by industry (this can be automotive, aerospace, machine tool and other industries). The utility organization can determine the responsibilities of its representatives based on the characteristics of the socio-economic situation of users.
Fig. 10. Three-dimensional organizational structure
Separation of responsibility. The considered "multidimensional" organization has something in common with the so-called "matrix organizations". However, the latter are usually two-dimensional and lack many of the important features of the organizational structures discussed, especially in terms of funding. In addition, they all have one common drawback: employees of functional departments are in double subordination, which, as a rule, leads to undesirable results. It is this most frequently noted lack of matrix organizations that is the cause of the so-called "occupational schizophrenia".
Multidimensional organizational structure does not create the difficulties inherent in matrix organization. In a multidimensional organization, the functional staff whose results are purchased by the program manager treat them as an external customer and report only to the functional manager. However, when assessing the performance of his subordinates, the head of the functional unit, of course, should use the assessments of the quality of their work given by the program manager. The position of the person who leads the functional team that does the work on behalf of the program is much like that of the project manager in a construction and consulting firm; he has no uncertainty about who the owner is, but he has to deal with him as a client.
M organizational structure and funding of programs. The commonly practiced (or traditional) funding of programs is only a way of preparing cost estimates for the functionality of departments and programs. It is not about providing resources and choice for program units, or requiring functional units to independently conquer markets within and outside the organization. In short, program funding is generally not organizational-specific and does not affect organizational flexibility. This method of allocating funds between functional units guarantees only the execution of programs, while providing a more efficient than usual determination of the cost of their implementation. The multidimensional organizational structure retains all the advantages of the traditional method of financing and, in addition, has a number of others.
Benefits of a multidimensional organizational structure
A multidimensional organizational structure increases the flexibility of the organization and its ability to respond to changing internal and external conditions. It does this by dividing the organization into divisions, the viability of which depends on their ability to produce at competitive prices the goods in demand and provide the services that the consumer needs. This structure creates a market within the organization, whether it is private or public, commercial or non-profit (non-profit), and increases its ability to respond to the needs of both internal and external customers. Since the structural units of the "multidimensional" are relatively independent from each other, they can be expanded, reduced, eliminated or changed in any way. The performance indicator of each subdivision does not depend on similar indicators of any other subdivision, which makes it easier for the executive body to assess and monitor the activities of the subdivisions. Even the work of the executive body can be assessed autonomously in all aspects of its activities.
The multidimensional structure hinders the development of bureaucracy due to the fact that functional units or programs cannot fall prey to service units, whose procedures sometimes turn into an end in itself and become an obstacle to the achievement of the goals set by the organization. Customers inside and outside the organization control the internal suppliers of products and services; suppliers never control consumers. Such an organization is oriented towards ends, not means, while the bureaucracy is characterized by the subordination of ends to means.
Disadvantages of a multidimensional organizational structure
However, a multidimensional organizational structure, although devoid of some of the significant disadvantages inherent in conventional organizations, nevertheless cannot eliminate all the disadvantages completely. By itself, such a structural organization does not guarantee meaningful and interesting work at the lower levels, but it facilitates the application of new ideas that contribute to its improvement.
The introduction of a multidimensional organizational structure in the enterprise is not the only way to increase the agility of the organization and its sensitivity to changes in conditions, but serious study of this allows you to "increase the flexibility" of people's ideas about the capabilities of organizations. It is this circumstance that should contribute to the emergence of new, even more perfect organizational structures.
Organizational process Is the process of creating the organizational structure of an enterprise.
The organizational process consists of the following stages:
- division of the organization into divisions according to strategies;
- relationship of authority.
Delegation- this is the transfer of tasks and powers of a person who assumes responsibility for their implementation. If the manager has not delegated the task, then he must complete it himself (M.P. Follet). If the company grows, the entrepreneur may not be able to cope with delegation.
A responsibility- a commitment to fulfill the tasks at hand and to be responsible for their satisfactory resolution. Responsibility cannot be delegated. The scope of responsibility is the reason for the high salaries of managers.
Credentials- limited right to use the resources of the organization and direct the efforts of its employees to perform certain tasks. Powers are delegated to positions, not individuals. Limits of authority are limitations.
Is a real ability to act. If power is what can really do, then authority is the right to do.
Line and staff powers
Linear powers are transferred directly from the boss to the subordinate and then to another subordinate. A hierarchy of management levels is created, forming its stepwise nature, i.e. scalar chain.
Staff powers are an advisory, personal apparatus (presidential administration, secretariat). There is no descending line of command in the headquarters. Great power, powers are concentrated in the headquarters.
Building organizations
The manager transfers his rights and powers. The design of the structure is usually done from top to bottom.
Organizational design stages:- Divide the organization horizontally into wide blocks;
- establish the balance of powers for positions;
- define your job responsibilities.
An example of building a management structure is the bureaucratic model of organization according to M. Weber.
Organizational structure of the enterprise
The ability of an enterprise to adapt to changes in the external environment is influenced by how the enterprise is organized, how the management structure is built. The organizational structure of an enterprise is a set of links (structural divisions) and connections between them.
The choice of organizational structure depends on factors such as:- organizational and legal form of the enterprise;
- field of activity (type of products, its nomenclature and assortment);
- scale of the enterprise (production volume, number of personnel);
- markets to which the company enters in the course of economic activity;
- technologies used;
- information flows inside and outside the company;
- the degree of relative endowment with resources, etc.
- organizations with;
- divisions of the organization;
- organizations with people.
An important role here is played by the structure of the organization, through which and through which this interaction is carried out. Firm structure- this is the composition and ratio of its internal links, departments.
Organization management structures
Various organizations are characterized by different types of governance structures... However, several universal types of organizational management structures are usually distinguished, such as linear, linear-staff, functional, linear-functional, matrix. Sometimes within a single company (as a rule, this is a large business), there is a separation of separate divisions, the so-called departmentization. Then the created structure will be divisional. It should be remembered that the choice of the management structure depends on the strategic plans of the organization.
The organizational structure regulates:- division of tasks into departments and divisions;
- their competence in solving specific problems;
- general interaction of these elements.
Thus, the firm is created as a hierarchical structure.
The basic laws of a rational organization:- ordering tasks in accordance with the most important points in the process;
- bringing management tasks in line with the principles of competence and responsibility, agreeing on the “solution field” and available information, the ability of competent functional units to accept new tasks to solve);
- mandatory distribution of responsibility (not for the sphere, but for the "process");
- short management paths;
- balance of stability and flexibility;
- the ability for goal-oriented self-organization and activity;
- the desirability of stability of cyclically repeated actions.
Linear structure
Consider a linear organizational structure. It is characterized by a vertical structure: top manager - line manager (divisions) - performers. There are only vertical links. In simple organizations, there are no separate functional units. This structure is built by a meringue of highlighting functions.
Advantages: simplicity, concreteness 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 uncomplicated technology and minimal specialization.
Line-staff organizational structure
As you grow enterprises are usually linear converted to line-of-staff... It is similar to the previous one, but management is concentrated in headquarters. A group of workers appears who do not directly give orders to performers, but perform consulting work and prepare management decisions.
Functional organizational structure
With the further complication of production, it becomes necessary to specialize workers, sections, departments of workshops, etc., a functional management structure is being formed... The distribution of work is done by function.
With a functional structure, the organization is divided into elements, each of which has a specific function, tasks. It is typical for organizations with a small nomenclature and stable external conditions. Here there is a vertical: the manager - functional managers (production, marketing, finance) - performers. There are vertical and inter-level links. The disadvantage is that the functions of the leader are blurred.
Advantages: deepening of specialization, improving the quality of management decisions; the ability to manage multipurpose and multidisciplinary activities.
disadvantages: 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.
Linear-functional organizational structure
With a linear-functional management structure, the main links are linear, complementary ones are functional.
Divisional organizational structure
In large firms, to eliminate the shortcomings of functional management structures, the so-called divisional management structure is used. The distribution of responsibilities is not by function, but by product or by region... In turn, divisional divisions create their own subdivisions for supply, production, sales, etc. This creates prerequisites for unloading higher managers by freeing them from solving current problems. The decentralized management system ensures high efficiency within individual departments.
disadvantages: growth in expenses for management personnel; the complexity of information links.
The divisional management structure is based on the allocation of subdivisions or divisions. This type is currently used by most organizations, especially large corporations, since it is impossible to squeeze the activities of a large company into 3-4 main departments, as in a functional structure. However, a long chain of commands can lead to uncontrollability. It is also created in large corporations.
- grocery.Departments are created by product type. Polycentricity is characteristic. Such structures have been created in General Motors, General Foods, and partly in Russian Aluminum. The responsibility for the production and marketing of this product is delegated to one manager. The disadvantage is duplication of functions. This structure is effective for the development of new types of products. There are vertical and horizontal links;
- regional structure... Departments are created at the location of the divisions of the companies. In particular, if the firm has international activities. For example, Coca-Cola, Sberbank. Effective for geographic expansion of market areas;
- customer-oriented organizational structure... Divisions are formed around specific customer groups. For example, commercial banks, institutions (advanced training, second higher education). Effective to meet demand.
Matrix organizational structure
In connection with the need to accelerate the pace of product renewal, target-oriented management structures have emerged, which have received the names matrix. The essence of the matrix structures is that temporary working groups are created in the existing structures, while resources and employees of other departments are transferred to the head of the group in double subordination.
With a matrix management structure, project teams (temporary) are formed to implement targeted projects and programs. These groups are in double subordination, they are created temporarily. This achieves flexibility in the distribution of personnel, effective implementation of projects. Disadvantages - the complexity of the structure, the emergence of conflicts. Examples include the aerospace company, telecommunications companies doing large projects for customers.
Advantages: flexibility, acceleration of innovation, personal responsibility of the project manager for the results of work.
disadvantages: the presence of double subordination, conflicts due to double subordination, the complexity of information links.
Corporate or is considered as a special system of interconnection between people in the process of carrying out joint activities. Corporations as a social type of organization are closed groups of people with limited access, maximum centralization, authoritarian leadership, opposing themselves to other social communities on the basis of their narrowly corporate interests. Thanks to the pooling of resources and, first of all, human resources, the corporation as a form of organizing joint activities of people presents and provides an opportunity for the very existence and reproduction of a particular social group. However, the unification of people in corporations occurs through their separation according to social, professional, caste and other criteria.
The organizational structure, which is a certain ordering of tasks, roles, powers and responsibilities, creates the conditions for the enterprise to carry out its activities and achieve the 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. A wide range of structures ranges from stable monolithic formations to the dynamic multifaceted structures of modern organizations.
The variety of organizational structures is associated with differences in the field of activity, the nature and complexity of the products manufactured, the size, degree of differentiation and the 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 and industrial group is incomparable with it. Small businesses do not have any complex organizational problems. If the functions in such an enterprise are carried out properly (without an excessive number of services and hierarchical structures not caused by the need), then their implementation requires such a limited number of employees that the problems of the structure recede into the background before the problems associated with the personal characteristics of managers (their knowledge, experience , work style, organizational ability, responsible performance of the official duty).
However, organizational structure problems arise not only in large enterprises. The organization of vertical and horizontal ties, project management is also necessary for medium-sized enterprises. This is directly related to all cases when there is an intermediate management team between the top management of the organization and the personnel performing the direct work, and also when it is generally possible to carry out a certain division of labor. Under all conditions, the problem arises of choosing one or another type of organizational structure that is adequate to the real requirements of the external and internal environment, the tasks of meeting consumer demand, technological and social development, and achieving economically effective results. The main types of organizational structures that have developed to date are discussed below.
The relationships between the elements of the control structure are maintained due to the relationships, which are usually subdivided into horizontal and vertical. The first are of the nature of coordination and are single-level. The second is the relationship of subordination. The need for them arises when the structure of the control system is hierarchical, that is, when there are different levels of control, at each of which its own goals are pursued. With a two-tier structure, top management levels are created (management of the organization as a whole) and lower levels (managers who directly supervise the work of performers). At three or more levels, the so-called middle layer is formed in the OSS, which, in turn, can consist of several levels.
Linear organizational structure of management
This is one of the simplest organizational management structures. It is characterized by the fact that at the head of each structural subdivision of any level there is a single manager who carries out all management functions and carries out the sole leadership of the employees subordinate to him.
In linear management, each link and each subordinate has one leader, through which all management commands pass through one single channel. In this case, management links are responsible for the results of all activities of the managed objects. Since in a linear management structure, decisions are passed along a chain "from top to bottom", and the manager of the lower management level is subordinate to the manager of a higher level above him, a kind of hierarchy of leaders of this particular organization is formed. In this case, the principle of one-man management operates, the essence of which is that subordinates carry out the orders of only one leader. The superior management body does not have the right to give orders to any executors, bypassing their immediate superior.
The linear organizational structure of management has its advantages
a very clear system of relationships of the "boss - subordinate" type;
explicit responsibility;
quick response to direct orders;
simplicity of building the structure itself;
a high degree of "transparency" of the activities of all structural units.
lack of support services;
lack of the ability to quickly resolve issues arising between different structural divisions;
high dependence on the personal qualities of managers of any level.
Functional organizational structure of management
The idea is that the implementation of certain functions on specific issues is assigned to specialists, i.e. each governing body (or performer) is specialized in the performance of certain types of activities.
The performers are in double subordination. So, the worker is obliged to simultaneously follow the instructions of his line supervisor and functional specialist. With a functional management structure, the line manager has the opportunity to deal more with operational management issues, since functional specialists relieve him of special issues.
But management commands come from many functional services to one production unit or to one performer, and therefore there is a problem of mutual coordination of these commands, which creates certain difficulties. In addition, the responsibility of executors for the performance of their duties is reduced.
The functional structure has its advantages and disadvantages:
removing most of the load from the top management level;
stimulating the development of informal ties at the level of structural blocks;
reducing the need for generalists;
it becomes possible to actively include various service services in the OSU - improving the quality of products;
strengthening vertical ties and strengthening control over the activities of lower levels
it becomes possible to create headquarters substructures.
significant complication of communications 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;
lengthy decision-making procedure;
difficulty in coordinating the activities of the organization;
the emergence of a tendency towards excessive centralization
Specialists form a headquarters under the line management, which prepares data for them in order to competently resolve special issues. In this case, the functional bodies are subordinate to the line manager. Their orders are given to production units only after agreement with the latter. This makes it possible to resolve issues more competently. But with a linear-functional management structure, the load on the line manager, who must play the role of an intermediary between functional services and subordinate production units, sharply increases. He perceives flows of information from subordinate units, gives tasks to functional services, develops solutions, issues commands from top to bottom.
The linear functional structure also has its positive and negative sides:
A functional organization aims to stimulate the quality of work and the creativity of workers, as well as the savings due to the growth in the scale of production of goods or services. However, maintaining synergy between different functions is challenging. The implementation of different functions implies different time frames, goals and principles, which makes coordination and scheduling difficult. In addition, functional orientation is associated with a preference for standard tasks, rewarding 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, as well as for organizations operating internationally, simultaneously in several markets in countries with different legislation. The logic of this form is a centrally coordinated specialization. It is difficult to track the contribution of each element of resources to the end result and the overall profitability of the organization. In fact, the current trend towards disintegration (i.e. buying rather than manufacturing parts, etc.) reflects the understanding by many firms that the necessary coordination of costs and resources used is reflected in performance. A functional organization can malfunction due to improper modification, since the logic of this organization is about 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 a linear structure (Fig. 2), built on the basis of a vertical management hierarchy and based on the strict subordination of the lower management to the higher. 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.
Advantages: Opportunity to obtain a high degree of professional specialization of employees. Determine precisely the locations and resources needed (especially personnel). Promotes standardization, formalization and programming of the process. Disadvantages: Complicates horizontal alignment. Difficulty responding to change
The main figure is the manager in charge of the department. A number of assistants are subordinate to him, who perform the function of coordinating individual functional services. Thanks to this combination, a fairly successful compromise is provided between vertical and horizontal relations within the division or the organization as a whole. Subdivisions are allocated on the basis of one criterion; it can be either the production of a certain type of product, or the service of a region, or work with a certain type of consumer, or another characteristic. Functional Service Leaders are dependent on and accountable to the unit manager.
The divisional structure also has advantages and disadvantages:
Decentralization of management within the framework of a linear-functional structure leads to the fact that the division of rights and responsibilities is split between different bodies that manage technical developments, the purchase of raw materials and materials, production, sales, etc. Such a process is most typical for enterprises where a huge the number of homogeneous products and the economies of scale are significant. One of the conditions for the decentralization of the structure can be a situation when the market is a single whole and is characterized by a high degree of concentration of consumption.
At the same time, the development of production diversification, a sharp increase in the complexity of internal and external relations, the dynamism of the introduction of technical innovations, a tough struggle for product markets lead to serious difficulties and in many cases completely exclude the use of functional forms of management. With an increase in the size of corporations, an expansion of the range of products and markets for their sales, functional management structures, due to the fragmentation of rights and responsibilities for individual functions, lose their ability to respond to ongoing changes. In the management process, conflicts arise when choosing priorities, decision-making is delayed, communication lines are lengthened, and control functions are hampered.
Building an organization according to the linear-functional principle (grouped by type of management) is shown in Fig. 9.4. This type includes structures that are formed either by product or by territory. Such structures are more often used by large diversified corporations that produce a wide range of products for various markets. The most typical for them is the product management structure, in which the central headquarters of the organization subordinate departments specialized in types of products with independent economic activities.
With a divisional structure, departments can also be specialized in sales markets.
The divisional form can be viewed as a combination of organizational links serving a specific market and centrally managed. Its logic is to combine unit autonomy with a centrally controlled process for resource allocation and performance measurement. While divisional firms can easily infiltrate related industries, there is a risk of over-expansion. Thus, many of these firms, expanding their activities in new markets, were unable to properly assess its results and make investment decisions. Divisional firms are also subject to the risk of modifications that violate the chosen logic of the organization's functioning.
the presence of tendencies towards decentralization;
a high degree of independence of divisions;
unloading of managers of the basic level of management;
a high degree of survival in the modern market;
development of entrepreneurial skills among division managers.
the emergence of duplicate functions in divisions:
weakening of ties between employees of different divisions;
partial loss of control over the activities of divisions;
Matrix organizational structure of management
The matrix structure combines two types of structures: linear and program-target. Vertically (linear structure), the board is built for individual areas of activity (production, supply, sales). Horizontally (program-target structure), programs, projects, themes are managed. When defining horizontal links, a program or project manager and his deputies for individual topics are appointed, a responsible executor in each specialized unit is appointed, and a special program management service is organized.
The work is ensured through the creation of target units, where leading experts are united for the joint development of the program. The program manager determines what should be done and when, and who and how will do this or that work is decided by the line manager.
Thus, the matrix management structure has supplemented the linear-functional organizational structure with new elements. This has created a qualitatively new direction in the development of program-targeted and problem-targeted forms of management. These forms contribute to the rise of managers' creative initiative in increasing production efficiency. Matrix management structures contribute to the restructuring of production based on the latest technological processes and more efficient equipment.
The matrix structure promotes the collective expenditure of resources, which is essential when the output of products is associated with the need to use rare or expensive types of resources. At the same time, a certain flexibility is achieved, which, in essence, is absent in functional structures, since in them all employees are constantly assigned to certain functional divisions. Since in a matrix organization, employees are recruited from different functional departments to work on a specific project, labor resources can be flexibly reallocated depending on the needs of each project. Along with flexibility, matrix organization offers great opportunities for efficient coordination of work.
The matrix structure has its advantages and disadvantages:
allows you to overcome intra-organizational barriers without interfering with the development of functional specialization
the principle of centralized management is not violated
more efficient day-to-day management, the ability to reduce costs and increase the efficiency of resource use;
the relative autonomy of project teams or program committees contributes to the development of decision-making skills, management culture, and professional skills among employees.
The difficulty of establishing clear responsibility for work on the instructions of the unit and on the instructions of a project or program (a consequence of double subordination);
high requirements for qualifications, personal and business qualities of employees working in groups, the need for their training.
Under this structure, the manager of the production department is obliged to prepare production, rationally organize labor, with the optimal use of raw materials, material and energy resources and exercise control over the work of subordinates.
Description of the organizational structure of OJSC "PiNII VT" Lenaeroproject "
Open Joint Stock Company "Design and Survey and Research Institute of Air Transport" Lenaeroproekt "was established in accordance with Federal Laws dated December 21, 2001 No. 178-FZ" On the privatization of state and municipal property ", dated December 26, 1995 No. 208-FZ" On joint-stock companies "by transforming the Federal State Unitary Enterprise" Design, Survey and Research Institute of Air Transport "Lenaeroproekt" on the basis of the order of the Government of the Russian Federation dated 25.08.2006 No. 1184-r and the order of the Federal Agency for Federal Property Management dated 18.10.2006 No. 208.
The founder of the Company is the Russian Federation represented by the Federal Agency for Federal Property Management.
The Company is a legal entity - a commercial organization, the authorized capital of which is divided into a certain number of shares, certifying the obligations of shareholders in relation to the Company.
The company owns separate property, recorded on its independent balance sheet, can, on its own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and defendant in court, in arbitration and arbitration courts. The company is responsible for its obligations with all property belonging to it.
The company is not responsible for the obligations of its shareholders. Shareholders are not liable for the obligations of the Company and bear the risk of losses related to the activities of the Company, within the limits of the value of their shares.
The state and its bodies are not responsible for the obligations of the Company, just as the Company is not responsible for the obligations of the state and its bodies.
The main activity of JSC Pinii VT Lenaeroproject is the full design of airport complexes of various classes, including runways, technical support facilities, buildings and structures for servicing passengers and handling cargo, hangars and aircraft repair enterprises.
Modern "Lenaeroproject" is a complex research and design institute capable of solving problems of any complexity in the field of designing air transport facilities and civil engineering. The enterprise is developing dynamically, striving to meet all technical requirements, while maintaining the developments of previous years, constantly expanding the sphere of its interests not only in the territory of the Russian Federation, but also beyond its borders.
All types of pre-design, survey, design, research, regulatory and other works are carried out to ensure capital construction (technical re-equipment, reconstruction, expansion, new construction) and overhaul of buildings and structures of airports, aircraft repair enterprises, flight and technical schools, facilities of construction organizations, buildings for housing and social and cultural purposes and other objects, buildings and structures.
When analyzing and designing organizations, one should consider the relationship of their elements, the structure, as well as the mechanism of interaction of these elements within the framework of certain goals and a given structure of the organization. The organizational structure and organizational mechanism in all the variety of their manifestations form the organizational forms of management.
The organizational structure of enterprise management reflects the composition and subordination of linear and functional management links, in OJSC PiNII VT Lenaeroproekt, the management structure has a linear-functional form.
With this type of organizational structure of the enterprise, the line manager, who reports directly to the director, is helped by a special management apparatus, consisting of functional divisions (departments, groups), in the development of specific issues and the preparation of appropriate decisions, programs and plans. Such units carry out their decisions either through the top manager, or directly communicate them to specialized services or individual performers at a lower level. Functional units do not have the right to independently issue orders to production units.
The management of the current activities of the Company is carried out by the General Director of the Company (the sole executive body), who is accountable to the Board of Directors and the general meeting of shareholders of the Company.
If the General Director of the Company is unable to fulfill his duties, the Board of Directors has the right to make a decision on the formation of a temporary sole executive body of the Company and on holding an extraordinary general meeting of shareholders to resolve the issue of early termination of the powers of the General Director and on the formation of a new sole executive body of the Company.
Under the existing management structure, the Director General is directly subordinate to:
Chief Engineer;
Legal Counsel;
Department of design and release of projects;
Financial and economic department;
Chancery;
Department of State Secrets Protection;
Human Resources Department.
The first deputy director is the chief engineer. The main function of the chief engineer is to manage the entire technical side of the enterprise: technical preparation of production, research, design and experimental work, the introduction of advanced equipment and technology, the organization of development, the development of new types of products in production; safe working conditions, providing production with technological equipment and repair services, develops plans for the development of the enterprise, reconstruction and modernization, monitors compliance with project, design and technological discipline, coordinates work on patent and inventive activity, standardization and unification, certification and rationalization of workplaces , metrological support.
Subordinate to the chief engineer:
Deputy Chief Engineer;
Chief Project Engineers;
Marketing department;
Department of Aerodromes and General Plans;
Department of aircraft maintenance and repair technology, aviation fuel supply, fire extinguishing, environmental protection, cargo transportation technology;
Technical department;
Department of power supply, lighting equipment, automation and instrumentation;
Architectural and construction department;
Division of means of radio engineering, meteorological support of flights, air traffic control and communications;
Department of heat supply, ventilation, water supply and sewerage;
Department of estimates and organization of construction;
Department of engineering-topographic and engineering-geological surveys, geophysical and land surveying works;
Research Department;
Department of automation of design work.
In OJSC PiNII VT Lenaeroproekt, a single vertical line of management and a direct path of active influence on subordinates have been created. The advantage of this control structure is simplicity, reliability and cost effectiveness. The leader in this case must cover all aspects of the enterprise.
Functional units carry out all the technical preparation of production, prepare options for resolving issues related to the management of production processes, release line managers from planning financial calculations, material and technical support of production and other issues.
Like any organizational structure, the linear-functional management structure has its advantages and disadvantages.
The advantages of the organizational structure of the management of OJSC "PiNII VT" Lenaeroproekt "include:
clear division of labor (qualified specialists in each area);
high management hierarchy;
availability of standards and rules of activity;
hiring in accordance with qualification requirements.
The main disadvantages are:
development of "narrow" specialists - techies rather than managers (managers). For JSC PiNII VT Lenaeroproekt, this led to the fact that almost all managerial positions were occupied by highly qualified and experienced technical specialists, but not all of them had mastered a new specialty for themselves - a manager (professional manager);
responsibility for the financial results of the enterprise as a whole is borne exclusively by the head of the enterprise, and the criterion for assessing the activities of the heads of most structural divisions is the physical volume of manufactured products, for non-production - the solution of engineering and technical problems, etc. At the same time, they seek to distance themselves from responsibility for the financial and economic results of the unit's activities, and, in addition, the traditional system of internal accounting simply does not allow these results to be objectively evaluated;
the structure "resists" the expansion of diversification of activities;
heads of specialized departments are focused on routine day-to-day work.
The rights and responsibilities in the management of the enterprise are clearly assigned and recorded in job descriptions and other documents regulating this area. There is no practice of reducing management costs at the enterprise. A rigid hierarchy allows you to organize effective interaction between various structural units to achieve the goals of enterprise development.
The composition of the management of JSC "PiNII VT" Lenaeroproject "is quantitatively and qualitatively provided with personnel, the level of education, qualifications, length of service of the executives meet the requirements of the enterprise. There is no tendency to replace executives with higher levels of education and qualifications.
Conclusion
Thus, the conducted research allows us to draw the following conclusions.
It is possible to characterize the structure of an organization in terms of its complexity, degree of centralization, formalization and configuration of the organization. In terms of complexity, it is necessary to note the differentiation and integration of the organization. At the same time, differentiation can be both vertical and horizontal.
Characterizing organizational structures in general, it can be noted:
1) there are no ideal, perfect structures, but each structure can be quite effective under certain circumstances, so it is necessary to constantly weigh the advantages and disadvantages of each organizational structure before using them;
2) the structure of any organization or its part must correspond to the goals of the organization, moreover, it must be formed on the basis of the tree of goals;
3) the social structures of the organization depend not only on the goals, but also on other organizational components - organizational technology, the composition of the participants in the production process, the culture of the members of the organization.
Organizational management structures are needed because they contribute to organizational effectiveness. The lack of an organizational management structure creates chaos at the enterprise: employees do not understand what they should do, how they should do it and with whom they should work; the heads of various departments do not imagine how their work is combined with the work of other departments. The OSU is the connecting element that allows all disparate divisions to carry out their work in a coordinated manner, in a unified manner of the task assigned to the organization.
List of sources used
Bowman K. Fundamentals of strategic management. - M .: Academy, 1997;
Vikhansky O.S. Strategic management. - M .: Gardarika, 1998;
Organization management. Textbook / Ed. d. e. A.G. Porshnev. M .: INFRA-M, 2000;
Efremov B. C. Business strategy. M .: Finpress, 1998;
Management: Textbook for universities / M.M. A. V. Maksimtsov Ignatieva, et al. - M .: Banks and stock exchanges, UNITI, 1998
Electronic resources
http://www.inventech.ru/lib/
http://www.marketing.spb.ru/lib/