The mechanistic organizational structure is characterized by great complexity, especially by the large number of horizontal divisions; a high degree of responsibility and formalization by a limited information network for lower levels of management; low level of participation of all management personnel in decision-making.
The mechanistic structure acts as a rigid hierarchy or control pyramid. It is characterized by a small number of management levels, rules and instructions, and greater independence in decision-making at the grassroots levels.
Rice. 7.1 - Diagram of the mechanistic structure
The forms and style of communication in the organic management structure are partnership, deliberative (in the mechanistic one, these are orders and instructions), for managers ...
characterized by high general education. In the literature, there is another term for mechanistic structures - bureaucratic. Naturally, it does not include the full set of negative characteristics with which it is associated in everyday life. Moreover, as you know, the German sociologist Weber, who developed this management model (early 20th century), considered it ideal. It has been designed to: meet the needs of the consumer; creation of equal conditions for the consumer; increasing the rationality and efficiency of management decisions. Weber saw the possibility of achieving the set goals by minimizing the personal influence of a leader on decision-making, as well as coordinating all specific decisions with the tasks of organizations.
The ideal or bureaucratic structure proposed by Weber and then extended not only to industrial, but also to public organizations, included the following characteristics: specialization of labor, hierarchy of subordination, regulation of duties, clearly defined duties and responsibilities, a system of established rules and procedures, depersonalization of relations, promotion based on qualifications from the hard worker, centralization of power, written records. All the features of the bureaucratic structure of the organization coincide with the above description of the mechanistic structure of management. For more than 50 years, this model has dominated management. To a greater or lesser extent, it combines the most common until recently types of organizational structures of the company: functional, linear, linear-staff, divisional. These structures represent the era of the industrial development of society. However, in the last 20 years, when the social production of developed countries has entered a new, informational era, Western management has largely rebuilt its structures. Moreover, such a restructuring is of a qualitative nature. Many organizations are changing their strategies and structures in order to survive in an increasingly competitive environment. Mechanistic structures function like a machine, a mechanism. Structures of another type (organic) function like a living cell, an organism. Organizations with informal management structures provide their employees with greater freedom of action, and, consequently, greater opportunities for choosing behavior acceptable to each person.
Home > Study Guide4. Organizational structures of management
4.1. Mechanical organizational structures of management
The structure reflects the structure of the system, i.e. composition and interrelation of its elements. The elements of the system form a whole due to the connection between them. The following elements are distinguished in the organizational structure: links (divisions, departments, bureaus, etc.), levels (levels of management) and connections - horizontal and vertical. Horizontal links are in the nature of coordination and, as a rule, are single-level. Vertical links are links of subordination, their need arises when there are several levels or levels of management (hierarchy). Links in the structure can be linear and functional, formal and informal. Thus, the organizational structure is a set of management units, between which a system of relationships is established, designed to ensure the implementation of various types of work, functions and processes to achieve certain goals. Each organization is characterized by a greater or lesser degree of specialization, formalization and centralization. Their combinations significantly affect the efficiency of the work of individual employees, groups, as well as the organizations themselves. There are two main models of organization: mechanical and organic. essence mechanical approach to building an organization is that the organization is seen as a system that resembles a machine. It works according to the established order, accurately and reliably. The work being done at any given time is pre-planned and can be foreseen. The technology for performing the work is quite simple. People perform repeatedly repeated operations, actions and movements brought to automatism. In such an organization, there is a high level of standardization, which extends not only to products, technology, raw materials, equipment, but also to the behavior of people. Mechanical organization management has the following characteristics:- – well-defined formal tasks; - narrow specialization of work; – centralized structure; – strict hierarchy of powers; - the predominance of vertical links; - the use of formal rules and procedures, the impersonality of relationships; - power is based on the position that the leader occupies in the hierarchy; – resistance to change; - Strict control system.
4.1.1. Linear organizational structure of management
This is the simplest organizational management structure (OSU). At the head of each production or management unit is a manager, endowed with all powers and exercising sole leadership of subordinate employees and concentrating all management functions in his hands. Decisions are passed down the chain top down. The head of the lower level of management is subordinate to the head of the higher one. Rice. 4.1. The scheme of the linear organization of the management structure This is how the subordination of leaders of various levels along the vertical (line) develops, which carry out administrative and functional management at the same time (Fig. 4.1). Moreover, subordinates carry out the orders of only one leader. Each subordinate has a boss. Each boss has several subordinates. The linear control structure is logically more slender, but less flexible. Each of the leaders has full power, but relatively little ability to solve functional problems that require narrow special knowledge. Let us note the main advantages of the linear OSU. 1. Unity, clarity and ease of management. 2. Consistency of actions of performers. 3. Speed in decision making. 4. Personal responsibility of each leader for the final result. However, this structure has its drawbacks. 1. The concentration of power in the upper levels of government. 2. High demands on the manager, who must have extensive versatile knowledge and experience in all management functions and areas of activity carried out by employees subordinate to him. 3. Information overload, a huge flow of paperwork, a lot of contacts with both subordinates and higher authorities. 4. Lack of links for planning and preparing decisions. At present, linear OSU is not used anywhere in its pure form, except for the army, where such a structure exists at the lower levels of army organizations or in the management of small and medium-sized firms that carry out simple production in the absence of broad cooperative ties between enterprises. When the scale of production is larger, and the range of problems to be solved increases, both the technical and organizational level rise. The linear structure turns out to be inefficient, since the leader cannot know everything and therefore cannot manage well. At the same time, it is present as an element of the formal structure in all administrative organizations in which relations between the heads of production units are built on the basis of the principle of unity of command.4.1.2. Functional organizational structure of management
Rice. 4.2. Diagram of the functional organizational structure And
sometimes this OSU is called traditional, or classical, since it was the first structure to be studied and developed. Its essence lies in the fact that the performance of individual functions on specific issues is assigned to specialists. Specialists of the same profile unite in structural units and make decisions that are binding on production units. The overall task of managing the organization is divided, starting from the middle level, according to the functional criterion. Each governing body or executor is specialized in the performance of certain types of activities. Thus, a staff of specialists appears who are highly competent in their field and are responsible for a certain direction (Fig. 4.2). The functional structure is based on subordination by areas of management activity. In fact, a particular unit has several senior managers. For example, the head of the shop with such a structure will be the heads of the departments of supply, sales, planning, remuneration, etc. But each of them has the right to influence only in his field of activity. This functional specialization of the management apparatus significantly increases the effectiveness of the organization. The line manager has the opportunity to deal more with issues of operational management, since functional specialists relieve him of solving special issues. Functional subdivisions acquire the right, within their powers, to give instructions and orders to subordinate subdivisions. Advantages of a functional OSU: 1) high competence of specialists responsible for the implementation of specific functions; 2) release of line managers from resolving special issues; 3) reducing the need for generalists; 4) standardization and programming of phenomena and processes; 5) elimination of duplication in the performance of managerial functions. The functional management structure is aimed at performing constantly recurring routine tasks that do not require prompt decision-making. The shortcomings of functional structures include: 1) the difficulty of maintaining constant relationships between various functional services; 2) lengthy decision-making procedure; 3) lack of mutual understanding and unity between employees of functional services of different production departments of the company; 4) reducing the responsibility of performers for work as a result of depersonalization in the performance of their duties, since each performer receives instructions from several managers; 5) duplication and inconsistency of instructions and orders received by employees “from above”, since each functional manager and specialized unit puts their issues in the first place; 6) violation of the principles of unity of command and unity of management. Functional organization aims to stimulate quality and creativity, as well as the pursuit of economies of scale in the production of goods or services. However, the implementation of different functions implies different time frames, goals and principles, which makes it difficult to coordinate activities and plan them. The logic of this organization is centrally coordinated specialization. The functional organizational chart is still used in medium-sized companies. It is advisable to use such a structure in those organizations that produce a relatively limited range of products, operate in a stable external environment and require standard management tasks to ensure their functioning. However, in its pure form, the functional structure is practically not used. It is used in close limited combination with a linear structure that operates along the management hierarchy from top to bottom and is based on the strict subordination of the lowest level of management to the highest. 4.1.3. Linear-functional (headquarters) organizational structure of management This organizational structure was formed as a result of attempts to eliminate the shortcomings of the linear and functional (Taylor) structures of the organization and combine their advantages. From the linear structure, she borrowed the principle of unity of command and concentration of power in production units, from the functional one - the involvement of narrowly qualified (functional) specialists in the activities with their restriction in the right to give orders to direct executors in production structures (Fig. 4.3). Rice. 4.3. Scheme of a linear-functional (headquarters) organizational structure D 
This structure appears as a combination of linear and functional structures: the distribution of power and formal relations in units created for the production of products and services are based on the principle of a linear structure, and in support services - functional. At the same time, in the higher echelons of the functional services, a special advisory body is formed under the first head, and sometimes under the line managers of a lower rank - the headquarters. Only line managers have the right to give orders to units that produce products (provide services). Representatives of the headquarters participate in the development of the strategy, making managerial decisions and monitoring their implementation. In addition, the tasks of the headquarters are to obtain and analyze information about the external and internal environment, exercise control, prepare draft decisions, current informing and advising management. First time concept headquarters was used in the army of Alexander the Great (356-323 BC). The main idea was to divide the officers into two groups: those who planned the battle and those who controlled the soldiers. The first group of officers were assistants to senior officers, the second group were line officers. Currently, examples of such units may be a legal service, a research group, a think tank, etc. The staff apparatus is classified into three parts: - advisory, consisting of professionals in areas of activity (economics, law, technology); serving, which ensures the activities of the head in auxiliary areas (public relations, verification of documentation, etc.); private, which is a type of service device.
- deep preparation of managerial decisions; release of the chief line manager from problem analysis; opportunity to attract consultants and experts.
- lack of flexibility and dynamism, which makes it difficult to achieve the set goals; lack of close relationships and interaction at the horizontal level between functional units. The constant need to coordinate decisions; insufficient responsibility, tk. preparing the decision, as a rule, does not participate in its implementation; the tendency to centralization is an overdeveloped system of interaction along the vertical.
4.1.4. Divisional organizational structure of management
The main creators of the divisional structure are DuPont and General Motors employees Pierre S. DuPont and Alfred P. Sloan. The structure they developed involved the creation of semi-autonomous production units, formed depending on the type of product, brand or geographical basis. The production activities of each of the departments were managed separately. The General Directorate distributed resources between departments and developed strategic plans. Despite the fact that the structure was created in 1920, it began to be used in practice in the early 70s. The restructuring in connection with the diversification of production, the complexity of technological processes in a dynamically changing external environment began to be carried out by large companies that began to create production departments. The departments were given independence in the implementation of operational activities. However, the administration retained the right of tight control over development strategy, research and development, investment, and so on. A combination of centralized coordination with decentralized control emerged. In the classical version, each department is a fairly autonomous economic unit in relation to the general management of the organization. The branch manager is endowed with full authority and is responsible for the effective operation of the branch. The firm consists of several departments. As a rule, it is headed by a collective body - the board of directors, which includes the heads of departments. The general management of the firm and its central office are responsible for the appointment of managers, the level of their qualifications, the allocation of resources, the development of a general strategy, and perform limited control functions based on the results of the activities of the departments. In addition, they seek funding sources and approve the financial plans of the branches. Three types of divisional structures are currently known.- Product structure consists of several fairly autonomous business units - departments, each of which is focused on activities in its sector of the food market and acts in relation to the organization profit center. In a developed company, each of the departments performs the functions characteristic of a linear-staff structure, i.e. has divisions of marketing, sales and design development (Fig. 4.4). Ideally, the number of departments in the firm should be equal to the number of product market sectors served by this organization. Such a structure is mainly focused on maximizing profits and gaining market positions. The first company to create a divisional structure with product divisions was General Motors, which formed five separate divisions: Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.
A potential disadvantage of a divisional (product) structure is an increase in costs due to duplication of the same types of work for different types of products.
- Organizational structure, focused on the consumer (Fig. 4.5), is a kind of development of the product structure and is used to serve certain groups of consumers that are most important to the organization, implying a careful and prompt consideration of all the subtleties of their requests.
Rice. 4.5. Organizational structure of management focused on the consumer
3. Regional organizational structure(Fig. 4.6) is used in most cases by those organizations that have their branches in different regions. The regional structure facilitates the solution of problems related to local legislation, attitudes, organizational culture, customer requests and needs.
Rice. 4.6. Regional organizational structure
This type of organizational structure is widely used by marketing, trading divisions of large firms, whose activities often cover vast geographical areas and which can be divided into smaller blocks - divisions. Pharmaceutical firms and firms producing packaging for various types of goods may form subsidiaries with functional or other structures in different countries or regions. Regional organizational structures are often used by non-profit organizations - trade unions, political parties, creative unions, etc. For several years now, a network of educational institutions has been operating in Russia that provide educational services for adults: obtaining a second professional education, advanced training for managers, training specialized scientific personnel, etc. P. The choice of divisional structure should be based on which of these factors is most important in terms of ensuring the implementation of the strategic plans of the organization and the achievement of its goals. The advantages of a divisional structure are: 1) prompt response to changes in external conditions; 2) convergence of strategic and current tasks in production structures; 3) convergence of responsibility and decision-making; 4) good conditions for the growth of regional managers; 5) a high degree of coordination within one division. Disadvantages: 1) internal competition for resources and qualified management personnel; 2) an increase in the cost of maintaining the administrative apparatus due to duplication of the same types of work for different types of products; 3) due to the increase in hierarchy (general director - board of directors - directors of enterprises), the need for coordination of activities at all levels increases, decision-making processes slow down, approval times increase.
test questions
1. What is the organizational structure of management? 2. What is the difference between mechanical OSU and organic ones? 3. List the types of mechanical OSU. 4. Advantages and disadvantages of linear OSU. 5. Advantages and disadvantages of a functional OSU. 6. What is the peculiarity of the linear functional OSU? 7. List the functions of the headquarters in the line-staff OSU. 8. List the types of divisional OSS.The textbook is intended for students of universities of natural sciences, technical and humanitarian specialties, graduate students and teachers. Foreword
TutorialEducational and Methodological Union of Russian Universities (Department of Psychology) of the Ministry of Education of the Russian Federation as a teaching aid for students of higher educational institutions
The textbook is intended for university students, students of technical schools, for teachers and psychologists in the system of higher and secondary education, for managers and all those who
TutorialStolyarenko L.D. From 81 Fundamentals of psychology. Third edition, revised and enlarged. Series "Textbooks, teaching aids". Rostov-on-Don: "Phoenix", 2 .
The textbook is intended for students of economic universities of all forms of education, graduate students, teachers, and may be useful to employees in the investment sector. © V. P. Popkov, V. P. Semenov, 2001 © Piter Publishing House, 2001
TutorialP 41 Organization and financing of investments. - St. Petersburg: Peter, 2001. - 224 p.: ill. - (Series "Key Issues").ISBN 5-318-00354-0The book details the formation and development of investment processes in commercial
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Inheritance law: Collection of normative legal acts / Comp. Yu.Ts. Masharova. - Krasnoyarsk: NOU VPO "St. Petersburg Institute of Foreign Economic Relations, Economics and Law".
Textbook for students and graduate students of the departments of philology and journalism
TutorialLaguta (Aleshina) O. N. Stylistics. A culture of speech. Theory of speech communication: Educational dictionary of terms. Tutorial / Ed. ed. N. A. Lukyanova.
Mechanistic control structures also called bureaucratic or rigid organizational structures, they have a rigid hierarchy in the form of a management pyramid. They got this name for their resemblance to mechanisms that must work according to a certain scheme without any deviations.
All organizational structures of this type are centralized. Unlike mechanistic, decentralized structures or are adaptive structures that are characterized by greater flexibility.
In a separate article,
Traditional mechanistic control structures
The linear management structure is historically the first and simplest type of structure.
The head performs all management functions, which is built on the basis of the production structure of the enterprise and extends to the management of the organization according to the scheme: head - director of the direction - workshop / section / department - performers. At the same time, the division is headed by a line manager: the head of a workshop, department, section, foreman, etc. The development of the bureaucratic structure is manifested in the emergence of leaders of small units within departments as the organization grows.
Mechanistic linear control structures are used by small organizations with homogeneous products and/or simple technology.
Linear-functional structure - based on a combination of linear and functional relationships in the organization.
This type of organizational management structure has proven itself in practice and is a typical form of management that is typical for large organizations with a complex technological process. This mechanistic structure is characterized by maximum management efficiency under relatively stable conditions for the development of the organization and the ability to withstand fairly significant external shocks.
Linear-headquarters management structures - includes headquarters units specially created under line managers.
Headquarters facilitate the work of line managers by performing individual management functions, most often planning and control. The separation of the financial control service and the planning department in the management structure is widespread. It should be noted that the mechanical structure of this type does not delegate decision-making rights to the headquarters unit, and they are managed directly by line managers. Staff units can report both to the head and be created to help line managers.
Divisional mechanistic management structures
The change in approaches to the organization and functioning of mechanistic management structures is due to the growth of the enterprise, the diversification of economic activity, the complication of technological processes, and the change in business conditions. When traditional mechanistic structures cannot provide the necessary controllability of processes in the organization, management can resort to the use of divisional management structures.
Divisional mechanistic management structures are based on the principle of decentralization based on division by products, consumers and regions.
In general, divisional structures are the result of the evolution of traditional mechanistic structures, taking into account the growth of enterprises, with each new center becoming a smaller copy of the main management structure. This approach allows to provide the necessary efficiency of management in the conditions of decentralized distribution of the organization.
It should be noted that the key role in the management of organizations with a divisional mechanistic structure is shifting from the heads of functional and/or linear units to the heads of divisions.
The divisional product management structure is formed as a result of division on the basis of production, this principle is typical for large manufacturers with a wide range of products.
The main principle is the selection of goods or groups of goods on any basis and the creation of separate areas, each of which has a production, marketing, sales service, etc.
A consumer-oriented divisional organizational structure is formed as a result of division on a marketing basis, while the organization must have a fairly pronounced range of goods or services intended for different categories of consumers.
Mechanistic divisional management structures focused on the consumer are typical for the non-productive sphere: educational institutions, banks, trading companies. For example, in a university, the broadest divisional structure is the faculties: the Faculty of Economics and Management, the Faculty of Finance and Accounting, etc. The bank will be divided into two divisions: for work with legal entities and for work with individuals.
The divisional territorial management structure is formed as a result of geographical division, this principle is typical for large enterprises with a wide geography of presence.
Mechanistic divisional territorial management structures are created as a result of the development of the enterprise, the spread of its activities in other regions, both in one country and abroad. A key feature is the consideration of regional specifics and the transfer of relative independence to territorial branches in decision-making on a significant list of issues.
The following aspect should be noted: although the divisional product and territorial management structure are similar in structure, however, in the territorial structure, a single decision-making center loses more management functions.
In practice, divisional mechanistic management structures differ from traditional ones only in the loss of a single decision-making center.
The mechanistic type of organization is a rigid organizational system that is somewhat similar to a mechanism. On the contrary, the organic type is a more plastic organizational system, which is more associated with a living organism, and not with a technical device.
The mechanistic type of organization is more characteristic of Western civilization, and the organic type is more typical of Eastern civilization, which is associated with the ethnic and cultural characteristics of the external social environment.
Mechanical type of organization
For the first time, the name of the bureaucratic structure was associated with the approach of M. Weber, who proposed a normative model, which was called rational bureaucracy (or ideal structure). In accordance with this model, all employees of the enterprise are required to act strictly following the instructions, without deviating from them. The second name of the mechanistic type (structure) of the organization received from the machine mechanism.
The mechanistic type of organization works depending on the established order, which predetermines its accuracy and reliability. Work that is carried out in a certain period of time is planned in advance, which makes it easier to foresee it.
The technology for performing work is very simple, since employees perform repetitive operations (movements, actions), often brought to automatism.
Features of the mechanistic type of organization
The mechanistic type of organization is typical for enterprises with a high level of standardization applied to products, technologies, materials and raw materials, equipment, as well as to the behavior of personnel.
The mechanistic type of organization is a rigid structure that cannot be changed. With the help of a mechanistic type of organization, it is impossible to manage the process of change. Often, the word "bureaucracy" is applied to the mechanistic type of organization, which is associated with rigidity, incompetence, absurdity and inefficiency of rules. The bureaucratic model includes the possibility of the manifestation of the listed negative phenomena in accordance with certain conditions.
Mechanical organization design approach
The mechanistic approach to organizational design can be characterized by the application of formal rules and procedures, including centralized decision making, narrowly defined job responsibilities, and a rigid hierarchy of authority. With these characteristics, an enterprise can operate with high efficiency only if it uses routine technology and has an uncomplicated and non-dynamic external environment.
Most researchers consider the mechanistic approach to be synonymous with Weber's bureaucratic organization. This structure has the advantages of versatility, predictability, and performance. These benefits can only be realized under the following conditions:
- Precise definition of the general goals and objectives of the enterprise,
- The ability to divide the work of the organization into separate operations;
- Central planning;
- Reliable measurement of work performance by each employee;
- Motivating staff through monetary rewards;
- Recognition of the legitimate authority of the leader.
Building a mechanistic structure
A mechanistic type of organization can be built in such a way that employees can behave predictably and are held accountable for their actions.
There are several features that characterize the mechanistic type of organization: a high degree of centralization of powers; communication and decision-making in accordance with the top-down principle; high degree of application of standards: a large number of detailed rules and standard operating procedures; well-defined roles and tasks.
Due to the predictability of the behavior of employees and the functions they perform, the activities of the company can be programmed in order to achieve predictable results. The mechanistic type of organization is in accordance with a stable environment. Enterprises of this type are most characteristic of mass production.
Examples of problem solving
EXAMPLE 1
| Exercise | distinguish features, which are characteristic of the mechanistic and organic structure: 1) Extensive application of formal rules and procedures, |
Linear organizational structure of management is the most common type of mechanistic structure.
A multi-level management system in which a higher manager exercises sole leadership of subordinate lower managers subordinate to him, and lower managers report only to one person - their immediate superior. According to this principle, a hierarchy of services is formed, penetrating the entire organization to the very bottom.
The linear control structure is simple and easy to understand. Clearly defined rights and obligations of all its participants create conditions for prompt decision-making.
In its pure form, the linear structure is found mainly in small organizations that have not yet found their place in the market; in organizations that do not have subordinates with a high or medium level of culture; in organizations where the production process is well established and there is no need for frequent changes in goals and technologies.
Figure 1 shows a diagram of a linear organizational structure.
Advantages of a linear management structure:
a clear system of mutual relations of functions and divisions;
a clear system of unity of command - one leader concentrates in his hands the management of the entire set of processes that have a common goal;
clear responsibility;
quick reaction of executive departments to direct instructions from superiors;
coordination of actions of performers;
Efficiency in decision-making;
simplicity of organizational forms and clarity of relationships;
· the minimum production costs and the minimum cost of products.
Disadvantages of a linear control structure:
Lack of links dealing with strategic planning;
· in the work of managers at almost all levels, operational problems ("churn") dominates over strategic ones;
overload of top-level managers;
a tendency to red tape and shifting responsibility when solving problems that require the participation of several departments; low flexibility and adaptability to changing situations; criteria for the efficiency and quality of work of departments and the organization as a whole are different; a tendency to formalize the assessment of the efficiency and quality of work of departments leads usually to the emergence of an atmosphere of fear and disunity; a large number of "management floors" between workers producing products and a decision maker; an increased dependence of the organization's performance on the qualifications, personal and business qualities of top managers.
The noted shortcomings do not lie in the plane of a specific linear organizational structure of management, but in the plane of the organization of the enterprise's work, and can be eliminated by replacing some of the bureaucratic elements with economic ones.
With the growth of the organization, the complexity of technology, the expansion of the range of manufactured products, it becomes necessary to create additional functional units in the structure of the enterprise that solve general and functional tasks.
Functional organizational structure of management - the structure of governing bodies, in which each governing body is specialized in performing a certain range of production, technological, design, financial, information or support functions. Compliance with the instructions of the functional body within its competence is mandatory for production units.
It developed as an inevitable result of the increasing complexity of the management process. The peculiarity of the functional structure lies in the fact that although unity of command is preserved, special units are formed for individual management functions, whose employees have knowledge and skills in this area of management.
In principle, the creation of a functional structure comes down to grouping personnel according to the broad tasks that they perform. Specific characteristics and features of the activities of a particular unit (block) correspond to the most important areas of activity of the entire enterprise.
The traditional functional blocks of an enterprise are the departments of production, marketing, and finance. These are broad areas of activity, or functions, that are available in each enterprise to ensure the achievement of its goals.
If the size of the entire organization or a given department is large, then the main functional departments can, in turn, be subdivided into smaller functional divisions. They are called secondary or derivative. The main idea here is to maximize the benefits of specialization and not allow leadership to be overloaded. However, some care must be taken to ensure that such a department (or division) would not put their own goals above the general goals of the whole enterprise.
Figure 2 shows a diagram of the functional organizational structure.
Figure 2 - Scheme of the functional organizational structure of management
Benefits of a functional management structure:
high competence of specialists responsible for the implementation of specific functions;
· expanding the capabilities of line managers for the operational management of production as a result of their release from the preparation of information on issues of functional activities;
· the functional structure of production management is aimed at performing constantly recurring routine tasks that do not require prompt decision-making. Functional services usually include highly qualified specialists who perform specific activities depending on the tasks assigned to them.
The disadvantages of functional management structures include:
Difficulties in maintaining constant relationships between various functional services;
a lengthy decision-making process;
Hierarchy in the structure of relationships;
Lack of mutual understanding and unity of action between employees of functional services of different production departments of the company;
Reducing the responsibility of performers for work as a result of depersonalization in the performance of their duties, since each performer receives instructions from several managers;
· duplication and inconsistency of instructions and orders received by employees "from above", since each functional manager and specialized unit puts their issues in the first place;
Violation of the principles of unity of command and unity of management.
The essence of the functional structure of the organization lies in the fact that all complex decisions that require technical, economic, legal, psychological and other special knowledge should be made only by employees who specialize in these areas and have the necessary competence, which ordinary line managers do not have.
Although the functional structure allows the management of organizational processes with the inclusion of the largest number of competent managers, professionals in narrow areas of knowledge and activity, the functional structure is practically not used in modern organizations due to its inefficiency.
As the experience of organizations has shown, the effect is achieved only if one person, a single leader, is responsible for the entire production process in a department or in one area. in fact, it is a line manager. The constant change of specialist managers inevitably gives rise to irresponsibility, lack of control over activities; double subordination, as well as role conflicts and uncertainty of role settings. Due to these circumstances, the functional structure in its pure form is not currently used.
Linear-functional organizational structure of management. The practice of using linear structures suggested some ways to overcome their shortcomings, in particular, the combination of a centralized linear structure and a highly specialized functional structure.
The essence of the linear-functional structure is that the organizational structure includes separate structural units: (subdivisions) that perform highly specialized functions at a high professional level. The influence of the activities of these structural units extends to certain aspects of the linear structure in this way: at some point in the activity, the line manager transfers his management rights to representatives of the functional structure, but makes sure that the prerogatives of the functional manager do not go beyond his competence. For example, to improve the production process, the intervention of designers is required, the head of the corresponding section in production facilitates the work of designers, but generally does not interfere in the details of their activities. As soon as the designers complete their work, the site manager fully regains the prerogatives of power and manages the entire production process on the site, including the implementation of the designers' recommendations.
Linear links make decisions, and functional units inform and help the line manager in developing specific issues and preparing appropriate decisions, programs, plans for making specific decisions.
Functional services bring their decisions to the executors either through the top manager, or (within special powers) directly. As a rule, functional services do not have the right to independently give orders to production units. The role and powers of functional units depend on the scale of economic activity and the management structure of the company as a whole.
Functional services carry out all the technical preparation of production; prepare options for solving issues related to the management of the production process; release line managers from planning, financial calculations, logistics of production, etc.
The line-functional structure (and its derivatives) is probably one of the most common in medium-sized enterprises.
Figure 3 shows a diagram of a linear functional structure.
The linear-functional management structure has a number of advantages:
quick implementation of actions on orders and instructions given by higher managers to lower ones,
rational combination of linear and functional relationships;
stability of authority and responsibility for personnel.
unity and clarity of command;
higher than in a linear structure, the efficiency of making and implementing decisions;
personal responsibility of each leader for the results of activities;
professional problem solving by specialists of functional services.
Disadvantages of a linear-functional structure.
duplication of the functions of the manager and functional specialists in the process of management activities;
· Insufficient for large enterprises, and enterprises operating in a dynamic market, the efficiency of decision-making;
The unwillingness of managers to take responsibility for decisions made;
The emergence of intra-production barriers that limit the scope of the interest of functional units in the effective development of production
Disagreements between line and functional services;
opposition of line managers to the work of functional specialists;
Misinterpretation of information transmitted to line performers by functional managers.
In addition, a linear functional structure is often understood as a structure in which an enterprise is divided into several independent linear structural units, each of which performs its own specific functions, for example, marketing, production, etc. In this case, the structure has the characteristics of both a linear and divisional structure (depending on the level of delegation of authority).
Divisional organizational structure of management. One of the noticeable trends in the organizational restructuring of enterprises in a transitional economy is a significant increase in the independence of individual links in management structures and the creation of subsidiaries on this basis. Around large enterprises, a network of small mobile firms is being formed that can quickly rebuild in relation to changing demand. Thanks to this, the enterprises of manufacturers of products are approaching the consumer sector, and the process of selling products is accelerating. From the production and organizational structure of many large enterprises, subdivisions with a complete production cycle stand out. On the one hand, independent economic entities are being created, focused on certain consumers, and on the other hand, the integrity of the production and technological complex, the general focus and profile of its activities are preserved.
The shift away from the use of strictly functional corporate management schemes in favor of a divisional structure for organizing activities by departments is quite clearly traced with the development of production diversification. However, in practice, there is a certain restraint towards decentralization, and its acceptable limits are set. This is due to the fact that the negative aspects of the excessive freedom of departments and enterprises in choosing areas of production activity and making responsible management decisions have become clearly visible. Therefore, the top managers of many corporations, without abolishing the departments that have received sufficient independence, make significant amendments to their organizational structure, subordinating them to their power to a much greater extent.
The divisional form can be viewed as a combination of organizational links serving a specific market and managed centrally. Its logic is to combine the autonomy of departments with a centrally controlled process of resource allocation and evaluation of results.
The construction of organizations according to the divisional principle is determined by grouping by type of management. This type includes structures that are formed either on a product or territorial basis, or are consumer-oriented. The most typical is a product management structure, in which departments specialized in types of products with independent economic activities are subordinate to the central management of the organization.
At product/commodity organization divisions are allocated in accordance with the various products that the company produces, and these can be quite different products - not necessarily car models or different types of soft drinks, etc. This type of organization may involve the production of various parts at different branches, and their assembly at other branches. So, if we again take the automotive industry as an example, one division can produce motors, another car bodies, a third various electrical parts, and several branches assembly finished products. Each branch in this case focuses on a certain type of product, adjusts its internal structure to its production, quickly solves many problems that previously - with a linear functional organization - would require discussion either at the very top or in large functional units, which significantly slowed down the decision-making process.
Very common in the world territorial type of divisional structure. It is especially typical for multinational companies. Each country or group of countries has its own characteristics, they are primarily related to the behavior of buyers and the choice of the right marketing strategy in the field of assortment, pricing, product promotion, etc. To centralize marketing activities in a multinational corporation is to deliberately reduce profits. This circumstance pushes the companies to allocate branches on a territorial basis. This type of structure is also important for Russia with its regions, which are so different from each other both in terms of their economic development and cultural traditions.
Client principle allocation of divisions in the divisional structure is not entirely deservedly ranked third. It is due to the fact that there are not so many companies that are clearly focused on building their structure only on it. The example given at the beginning of this chapter of a manufacturer of office supplies for individual consumers, corporate clients, and government organizations can illustrate its possible application in practice. There are manufacturers of children's toys that distinguish divisions based on the age of customers: one division produces products for children 1-2 years old, another for 3-5 year olds, and a third for children of primary school age. At the same time, from a methodological point of view, the client criterion is the most important and, ultimately, the only one used in the divisional structure. The difference in goods is, first of all, the difference in the customers for whom they are produced, the difference in territories is, again, first of all, the difference in the people who inhabit them. Therefore, ultimately, behind the first two more common criteria, there is one single client principle for distinguishing departments.
The diagram of the divisional organizational structure is shown in Figure 4.
The advantages of a divisional structure are:
higher adaptability compared to previously existing structures;
Improving the coordination of the activities of functional departments within departments;
· opportunities for further development of independence of units, decentralized organization of financial flows;
The most important advantage of the divisional structure is the possibility of developing internal cost accounting.
In general, within the framework of the financial structure of the enterprise, there are three types of units:
1) profit centers - units that make a profit or must be profit-oriented in their activities (6 if today they are not able to earn money inside and outside the company, this indicates incompetent management);
2) loss centers - those units whose existence is considered necessary for the organization as a whole, but which, by definition, are unable to make money (according to the classical economic theory coming from Adam Smith, there should not be such units, but real economic practice abounds of this kind examples: educational centers of the company, medical institutions, departments related to the development and testing of products, etc.)
3) venture centers - divisions that today bring quite justified losses, but tomorrow they are able to make a profit (first of all, they include new divisions of the company that currently spend more money on their development than they bring profits).
An organizational system consisting of such centers is practically impossible to develop within the framework of a linear functional structure. How much profit did the accounting or planning department make? This question is often rhetorical. The answer to this question requires very complex counting procedures, which are usually effective only when there are independent organizations in the market that provide such services.
The disadvantages of a divisional structure are:
duplication of management functions in various departments;
less cost-effectiveness in comparison with a linear-functional structure;
· complexity of distribution of powers between the central headquarters and divisions.
The high cost and duplication of functions become a serious brake on the introduction of divisional management structures at domestic enterprises. The lack of funds, the inability to ensure the profitability of individual industries most often lead the management of organizations to the idea that the linear-functional structure is not only the simplest and most understandable, but also the most effective in Russian conditions.