Structural organization of the enterprise. Disadvantages of matrix structures. Evolution of organizational structures

Achieving high performance results is what all companies strive for, without exception. However, without a clearly established organizational structure, the enterprise risks failure.

In this article we will analyze what the organizational structure of enterprise management is and how to choose it correctly.

Features of choosing the organizational structure of an enterprise

The organizational structure is the basis for performing enterprise management functions. Thus, it is understood as composition, subordination, interaction and distribution of work between individual employees and entire departments.

Speaking in simple language, the organizational structure of an enterprise is a set of divisions, as well as managers headed by the general director. Its choice depends on many factors:

  • age of the organization (the younger the company, the simpler its organizational structure);
  • organizational and legal form (JSC, LLC, individual entrepreneur, ...);
  • field of activity;
  • scale of the company (number of employees, departments, etc.);
  • technologies involved in the company's work;
  • connections within and outside the company.

Of course, when considering the organizational structure of management, it is necessary to take into account such characteristics of the company as levels of interaction. For example, how departments of a company interact with each other, employees with employees, and even the organization itself with the external environment.

Types of organizational structures for enterprise management

Let's take a closer look at the types of organizational structures. There are several classifications, and we will consider the most popular and at the same time the most complete of them.

Linear

Linear structure is the simplest of all existing types of enterprise management structures. At the head is the director, then department heads, then ordinary workers. Those. everyone in the organization is vertically connected. Typically, such organizational structures can be found in small organizations that do not have so-called functional divisions.

This type is simple, and tasks in the organization are usually completed quickly and professionally. If for some reason the task is not completed, then the manager always knows that he needs to ask the head of the department about the completion of the task, and the head of the department, in turn, knows who in the department to ask about the progress of the work.

The disadvantage is the increased demands on management personnel, as well as the burden that falls on their shoulders. This type of management is only applicable to small businesses, otherwise managers will not be able to work effectively.

Line-staff

If a small company that used a linear management structure develops, then its organizational structure changes and turns into a linear-staff one. Vertical connections remain in place, however, the manager has a so-called “headquarters” - a group of people who act as advisors.

The headquarters does not have the authority to give orders to the performers, however, it provides strong influence to the leader. Based on the decisions of the headquarters, management decisions are also formed.

Functional

When the workload on employees increases and the organization continues to grow further, the organizational structure moves from a line-staff to a functional one, which means the distribution of work not by departments, but by functions performed. If everything was simple before, now managers can safely call themselves directors of finance, marketing and production.

It is with a functional structure that one can see the division of the organization into separate parts, each of which has its own functions and tasks. A stable external environment is an essential element of supporting the development of a company that has chosen a functional structure.

Such companies have one serious drawback: the functions of management personnel are very blurred. If in a linear organizational structure everything is clear (sometimes even too clear), then with a functional organizational structure everything is a little blurry.

For example, if problems arise with sales, the director has no idea who exactly to blame. Thus, the functions of management sometimes overlap and when a problem occurs, it is difficult to determine whose fault it was.

The advantages are that the company can be multidisciplinary and cope well with this. Moreover, due to functional separation, a firm can have multiple goals.

Linear-functional

This organizational structure is only applicable to large organizations. Thus, it combines the advantages of both organizational structures, however, it has fewer disadvantages.

With this type of control, all main connections are linear, and additional ones are functional.

Divisional

Like the previous one, it is suitable only for large companies. Functions in the organization are distributed not according to the areas of responsibility of subordinates, but according to types of product, or according to the regional affiliation of the division.

A division has its own divisions, and the division itself resembles a linear or linear-functional organizational structure. For example, a division may have a procurement department, a marketing department, and a production department.

The disadvantage of this organizational structure of the enterprise is the complexity of connections between departments, as well as the high costs of maintaining managers.

Matrix

Applicable to those enterprises that operate in the market where products must be constantly improved and updated. For this purpose, the company creates working groups, which are also called matrix ones. It follows from this that double subordination arises in the company, as well as constant collaboration of employees from different departments.

The advantage of this organizational structure of the enterprise is the ease of introducing new products into production, as well as the company’s flexibility to the external environment. The disadvantage is double subordination, due to which conflicts often arise in work groups.

conclusions

So, the organizational structure of an enterprise is a company’s management system and its choice determines the ease of performing tasks, the company’s flexibility to the external environment, as well as the load that falls on the shoulders of managers.

If the company is small, then at the stage of formation, as a rule, a linear organizational structure naturally arises in it, and as the enterprise develops, its structure becomes more and more complex look, becoming matrix or divisional.

Video - an example of a company's organizational structure:

Instructions

There are several types of organizational structure management: linear, linear-staff, functional, linear-functional, matrix and divisional. The choice of structure is greatly influenced by the strategy for the future operation of the enterprise. Structure management has a hierarchical structure.

According to the technological structure, workshops or areas are grouped according to the principle of homogeneity of the technologies used in them. As a rule, a separate phase production corresponds to a specific division. At machine-building plants there are foundry, mechanical, and forging shops, within which there are several sections, for example, within the framework of mechanical production turning, milling sections, etc. work.

With subject structure production Shops are divided according to the type of products (objects) they produce or their components. For example, in automobile manufacturing plants, workshops are structured according to the type of car parts they produce: chassis, frames, axles, etc.

To auxiliary departments of workshops or areas that perform routine or scheduled repairs of equipment, transport service. Examples: tool, model, transport and other workshops. Auxiliary ones are formed according to the same principles as the main ones: technological, subject and mixed type.

The organization of the administrative apparatus implies the creation of several levels of management. At large enterprises – 8-12 levels. All levels are hierarchically interconnected, and the structure of the management unit depends on the nature production, industry of work, scale production, as well as the level technical equipment enterprises.

Video on the topic

Tip 4: What is the organizational structure of an enterprise

All modern enterprises basically have a different organizational structure, which covers all areas of activity. It is the skeleton of any company, so you need to understand what the organizational structure of an enterprise is.

Definition

The organizational structure of an enterprise as such was discussed at the beginning of the 20th century, when there was a rapid qualitative leap in production, which required a revision of management approaches. Organizational structure of the enterprise in in general terms is a set of rules, connections, guidelines and subordination of all levels of enterprise management, from top managers to performers. The organizational structure of an enterprise existed even before the beginning of the 20th century, otherwise large enterprises and industries would not have arisen, but from a theoretical point of view they began to think about it precisely in this era. On this moment There are many types of organizational structures, but the most basic are hierarchical, divisional and organic.

Hierarchical organizational structure

This is the most classic and canonical type of organizational structure possible in an enterprise. As the name implies, this structure is based on a clear hierarchy between management levels, there is a clear distribution of responsibilities and powers and, accordingly, a clear division of labor, in relation to which personnel policy enterprises. This organizational structure has such disadvantages as poor coordination of interaction between related departments, developed and impersonal attitude towards staff. This type of organizational structure is typical for large manufacturing and enterprises in Russia and the CIS countries.

The largest theorist and practitioner of creating organizational structures is Henry Ford, whose management style was adopted by many manufacturing firms of that era.

Divisional organizational structure

Due to the emergence of diversified enterprises and the expansion of the areas of activity of international corporations, by the end of the 20th century there was an urgent need to create new types of organizational structures. One of them was the divisional organizational structure, which is characterized by the division of the areas of activity of the enterprise into divisions/divisions, headed by responsible managers. A division may include several thousand workers acting in the same direction. Also, divisions can be divided on a territorial basis, this is especially true for international ones. There are also disadvantages to such an organizational structure, the biggest of which are an overly branched management system, duplication of functional responsibilities between divisions, as well as the burden of divisions to form hierarchical organizational structures within themselves.

Existing organizational structures are most often mixed. Within a hierarchical structure, there can be project divisions, and vice versa - an organic structure can have elements of a hierarchical one.

Organic organizational structure

This type of organizational structure arose due to the need for the enterprise to quickly respond to changing market conditions, within which competition can be extremely dense. There are several types of organic organizational structures: project, matrix and team. Each of these types has such characteristics as the formation of responsible groups (project or team) on a professional basis, the division of powers within them and the responsibility of each for the final result. An organic organizational structure is typical for large companies operating in the IT field when they carry out many projects. Professional growth and well-coordinated work in a team are encouraged here, where just one link can ruin the entire work on the project.

Managment structure

Upon the foundation of any legal entity - commercial organization, or an industrial enterprise - is always initially determined. The choice of management system goes through several main stages. First, it is chosen which management structure will be applied in the organization. This can be hierarchical, functional or direct reporting structure.

The second stage determines powers and distributes responsibilities between the main levels, management personnel and departments. Finally, the third stage, when the powers of the management apparatus, its duties and degree of responsibility are finally designated. Despite the fact that there are currently a sufficient number of management systems, most often a hierarchical management structure prevails in organizations.

Principles of a hierarchical management system

A hierarchical management system is essentially a pyramid in which any lower level is subject to the subordination and control of a higher level. This structure assumes high responsibility of the highest management team compared to the one below. The distribution of labor between employees of the organization occurs according to specialization in accordance with the functions performed.

Hiring is based on the professional skills of the applicant. In addition, they pay attention to how manageable a person is and whether he can perform the role of a manager himself. According to the hierarchical structure, all employees are divided into three groups: managers, specialists, and executive employees.

Main types of hierarchical structures

The main types of hierarchical structures include:
- a structure in which the management of the organization is directly in the hands of the manager - this is possible in small organizations when the manager personally assigns tasks to each subordinate;
- functional, in which each link performs its tasks, according to the specialization of the unit according to its functional purpose.

Each department reports to the head of the department. Mixed type management, where, along with the linear apparatus, there is a branched hierarchy of various functional groups. In them, line managers have linear, and functional managers have functional authority over their subordinates.

Video on the topic

Lecture on organization theory

Topic: “Organizational structures”

1. Concepts characterizing the structure of organizations

Structure - This organizational characteristics system, which is a set of stable, system-forming connections and relationships that ensure stability and balance of the system, interaction, subordination and proportionality of its constituent elements.

Organizational management structure - this is the composition, relationship and subordination of independent management units and individual positions performing management functions. The organizational structure of management is determined by its constituent units and levels of management. This structure should ensure the stability of connections between control elements and the reliability of the system as a whole.

Management link - a separate division with strictly defined functions. A management link can be a separate unit that performs part of the management function, the entire management function, or a set of management functions. The management level also includes managers. There may be several management levels at one level. From Western management, the concept of “departmentalization” has come into our professional lexicon, meaning the process of organizational separation, the implementation of individual work, the allocation of special divisions, the process of dividing the company into separate blocks (divisions, divisions, sectors) with clearly defined tasks and responsibilities.

Relations between management levels are maintained through connections, relationships, and communications. By content and functional purpose communications and the relationships that make up the structure of the organization, are divided into three groups:

Connections of direct interaction that ensure the formation of new system properties, absent from its individual constituent elements;

Relationships of subordination that establish hierarchical dependence in the organization and determine the number of floors in its structure;

Relationships that establish the proportionality of the structure of the organization and ensure mutual correspondence of the quantitative and qualitative parameters of the individual components of the system.

By orientation, connections are divided into horizontal and vertical.

Horizontal connections- these are connections between equal levels of management. They are in the nature of coordination. Their main purpose is to facilitate the most effective interaction of units located at the same level in solving problems that arise.

Vertical connections- these are connections between a manager and a subordinate, these are subordinate, hierarchical connections. The need for them arises when there are several levels of management. These connections serve as channels for transmitting administrative and reporting information. Vertical connections can be linear or functional.

Linear connections- these are connections of subordination on a whole range of issues. These are relationships that presuppose that the manager exercises authority and exercises direct and sole leadership of subordinates in all management functions.

Functional connections- these are connections of subordination within the implementation of a certain management function. Depending on the management principles adopted in the organization and the type of organizational structure, they can be advisory, recommendatory or informational in nature.

Invariant connections- these are connections that can remain practically unchanged under any conditions, which is due to the essential characteristics of the system, its target orientation and functional purpose, the specifics of the implementation of connections in a given organization.

Variable connections- these are connections that change their characteristics when the situation changes. The variability of connections can manifest itself in changes in their content richness, as well as in the transition of connections from one classification group to another.

Intra-system interconnections constitute the structure of the organization, but in themselves they do not determine the structure of the organization. The basis of the structure of an organization is a connection - a communication node with the entire set of incoming and outgoing channels.

The following main ones can be considered types of connections in the organization, on the basis of which many structures can be built (Fig. 1).

The structures are divided as follows.

Technological structures- a set of connections in the technological process of manufacturing products.

Organizational and management structures- a set of connections that ensure orderliness, coordination and regulation of the organization’s activities to achieve its goals.

Economic structures- a set of relations of economic interaction between individual members of an organization.

Socio-psychological structures- a set of connections that establish social status members of the organization; psychological relationships between people.


Principles of structuring:

Goal setting;

Priority of functions over the composition of links;

Priority of the object over the subject;

The primacy of the mission, goals, set of functions;

Position in the external environment;

Adaptability;

Full coordination;

Minimum complexity.

The structure is formed only by stable connections and relationships. The connections that make up the structure must be clear, sufficiently expressed and strong, and the relationships must be clear, definite and unambiguous. It should be noted that there are, however, structures with weakened connections. Such structures are formed during the transition of a system from one state to another.

2. Relationship between types of organization and principles of constructing organizational structures

Organizational structures are built according to certain principles that are associated with the type of organization. Modern management considers primarily two types of organizations - bureaucratic and organic.

The relationship between the type of organization and the principles of constructing organizational structures is shown in Fig. 2.

Bureaucratic organizations are characterized by hierarchical structures. They can be:

Linear;

Functional;

Linear-functional;

Divisional.

Organic organizations are characterized by project and matrix structures; Organic organizations can also be destructured.

3. Linear management structures

The main principle of constructing a linear structure is the vertical hierarchy, i.e. the subordination of management links from bottom to top

The linear management structure implies the principle of unity of command, which means that at the head of each division is a manager vested with all powers, who individually supervises subordinate units and concentrates all management functions in his hands.

Advantages of a linear structure:

Unity of management;

Simplicity and clarity of subordination;

Full responsibility of the manager for the results of the activities of his subordinate units;

Efficiency in decision making;

Coherence of actions of performers;

Receipt of agreed orders and assignments by lower levels.

Disadvantages of a linear structure:

Large information overload of the manager, a huge flow of documents, the multiplicity of his contacts with subordinates, superiors and related levels;

High requirements for the manager, who must be a highly qualified specialist with extensive, versatile knowledge and experience in all management functions and areas of activity carried out by employees subordinate to him;

The structure is suitable for solving only operational current problems;

The structure does not allow solving problems caused by the constantly changing operating conditions of the organization.

Linear organizational structures in their pure form are used only at lower production levels, as well as in small enterprises, especially during their formation.

4. Functional management structures

Such structures are characterized by the creation of divisions, each of which has a specific task and responsibilities. Each control is focused on execution individual species management activities; In each of them, a staff of specialists is created who are responsible only for a certain area of ​​work. At the core functional structure lies the principle of complete management, which consists in the fact that the implementation of the instructions of the functional body within its competence is mandatory for execution (Fig. 4).

Advantages of a functional structure:

High competence of specialists responsible for performing specific functions;

Specialization of divisions in performing a certain type of management activity;

Eliminate duplication of management tasks for individual services.

Disadvantages of the functional structure:

Violation of the principle of unity of command when using the principle of full management;

Lengthy decision-making procedure;

Difficulties in maintaining relationships between various functional services;

Reducing the responsibility of performers for work, since each performer receives instructions from several managers;

Reducing the responsibility of functional managers and functional departments for the work of the organization as a whole.

5. Mixed structures

To a certain extent, the disadvantages of linear and functional organizational structures are reduced in mixed linear-functional management structures that provide for the functional division of managerial labor in departments different levels and a combination of linear and functional management principles. In this case, functional units can make their decisions either through line managers or within the limits of special authority. Let's consider these options using the example of Fig. 5 and Fig. 6.

What does it cost us to build a house?
Let's draw, we'll live.

Folk wisdom

I have a nightmare: excess bureaucracy in the state,
where illiteracy was recently eliminated.

Stanislav Jerzy Lec

1. What is organizational structure (definitions)

Organizational structure and task execution

Organizational structure and task execution are very closely related. So closely that if the structure and other elements of the organizational process do not fit together and no effort is made to adapt the structure, then it becomes impossible to perform tasks (Fig. 2).

This lecture describes the main options for the structure of enterprises and their features, which make it possible to choose necessary structure to implement the chosen strategy.

So what is it organization structure? Exist various interpretations this concept.

Ansoff I. (1989) believes that these are static structures for regulating the production activities of the company and distributing management functions.

Using the approaches of Evenko L.I. (1983) and Fatkhutdinova R.A. (1997), this formula can be supplemented as follows: organizational structure- this is a set of organizational units involved in the construction and coordination of the functioning of the management system, the development and implementation of management decisions, as well as the connections and relationships between them that arise in the management process to achieve the intended goals.

There are other definitions. Here are some of them.

  • The organizational structure shows the area of ​​responsibility of each employee and his relationships with other employees of structural units.
  • The organizational structure shows who is responsible for which areas of work. It shows the interaction (communication) of individual sections with each other, allows and requires the use of common sense and the ability to assess the situation at all levels of management.
  • The internal organizational structure of enterprises is designed to actually ensure the integration of science and production; production, maintenance and sales; production and foreign economic activity; economic responsibility of the organization as a whole and its individual production units. There are some shortcomings in all these definitions and approaches. First of all, this is a mechanistic approach that excludes the human factor, but takes into account human resources. However, in the modern business world it is human factor priority is given. And secondly, the organization is considered in isolation from the environment. But no organization can live in isolation.

Systematic approach to organization

Provides another point of view systems approach to the organization.

Before talking about this approach, let's define systems. A system is a collection of stable, over a certain period of time, group of elements and connections between these elements. Systems can be closed, that is, without connections with environment or other systems, and open ones. From this point of view, an organization can be defined as an open system. Consequently, the structure of this system can be represented as a description of the elements, their location and the nature of the connections between them.

What elements are present in the organization? These are the resources: human, material, financial, informational. These elements, grouped differently in different places in the system, form subsystems or divisions of the organization, between which connections are formed. (Connections, of course, are also formed within subsystems). The most complex element in the organization system is. First of all, due to the uniqueness of each individual person. From the point of view of the organizational structure, especially when building or changing it, it is important to evaluate, and when building the structure, distribute such features human resource, How Skills, Knowledge, Abilities (including creative and intellectual) so that power, authority and planning, work organization and control, management of other resources and motivation, functions and operations ensure the most effective achievement of the organization’s goals and objectives.

As for the connections between the elements of the organizational structure and the organizational structure and environment, they are determined and can be described through resource flows.

Thus, we can propose the following definition of organizational structure: The structure of an organization is a set of elements-resources (human, material, financial, information) distributed in the organizational system, taking into account their features and characteristics and connections through resource flows between these elements, elements and the environment .

Often, when building a structure, organizations forget about such features of human resources as motivation, leadership, etc. This leads to:

  • the appearance of unmotivated employees in the organization;
  • the emergence of groups with internal leaders who achieve goals unrelated to the goals of the organization;
  • imbalance of power, when individual people in an organization, having received power, begin to make decisions at the expense of it own problems and/or use power to gain more power. Moreover, of their own free will, people seeking power rarely

they stop and, as they progress, begin to compete for power, including with the first leader, or leave the organization in search of more power (and losing a qualified employee is not always pleasant). All this significantly reduces the efficiency of the organization.

2. How the structure is built (option) What determines the structure of an organization, what you should first of all pay attention to when building it is very important questions. Various organizations act differently. Some start building from existing resources or even from some of their characteristics, such as powers or operations and functions.

Considering that the organization is an open system, moreover, the viability of the organization is determined more by its connections with the external environment than internal processes, apparently, it makes sense to build the organizational structure from external environment, and most likely, from buyers and connections with them. This is a marketing approach to building a structure, and it has been around for quite some time in the market environment.

That is, when building a structure, we must, first of all, determine what resources (material - products and services, information) should be transferred to the buyer or society in order to receive other resources (financial, information) in return. After this, we analyze the possibility of creating resources that are in demand, and if we come to the conclusion that this is feasible, we begin to create a structure.

First, we determine what final operations need to be done to obtain the final product, then we build a technological chain back from this operation (see Fig. 3). Having registered all the operations, we begin to group them according to certain characteristics into functions or jobs. Grouping functions or jobs by characteristics will give us divisions. After this, we begin to allocate resources, associating them with functions and operations. At the same time, for human resources, Job responsibilities and Qualification requirements . The Qualification Requirements define the necessary Skills, Knowledge and Abilities . In addition, it is better to determine the motivation, attitude to leadership and responsibility, to the power of existing employees, especially from management personnel, and only then make a decision on their appointment to positions.

The Peter Principle: In any hierarchical system, each employee strives to reach his own level of incompetence.

Consequences:

  1. Over time, every position will be filled by an employee who is incompetent in performing his duties.
  2. The work is done by those employees who have not yet reached their level of incompetence.
Peter's Hidden Postulate According to Godin: Every employee starts at his own level of competence.
Peter's Transformation: Internal consistency is valued over efficient performance.
Peter's Observation: Overcompetence is more undesirable than incompetence.

Peter's Law of Evolution: Competence always contains a grain of incompetence.

In fact, the structure of the organization is not necessarily based on the client. It is built and changed from the most scarce resource for the organization at the time of construction. And this resource is not always the buyers’ money.

Of course, it is not always possible to implement this method of constructing a structure for various reasons. For example, in connection with the existing technology, structure or culture of the organization. But it apparently makes sense to take such an approach into account when developing the structure.

Structure parameters

Organizations vary greatly in size, capabilities, and goals. However, the differences in their structure are determined by only a few parameters. By understanding these parameters, it is possible to explore and build the structure of many, if not all, organizations. These parameters: specialization, formalization, controllability, centralization.

1. Specialization

One of the main differences between organizations is how tasks and tasks are distributed. There are organizations with high degree specializations. These are usually large organizations. There are small organizations in which employees perform big circle responsibilities. Thus, to some extent we can say that

that the degree of specialization is determined by the size of the organization. However, you should not expect people working in small organizations to be proficient in all areas for which they are responsible. On the other hand, it is difficult to expect that personnel in organizations with a high degree of specialization will be able to satisfactorily perform tasks that are not typical for them or will support changes associated with their reassignment. In addition, significant efforts are required to coordinate the work of specialists. That is, first the organization solves the issue of specialization, and having solved it, it begins to think about integration and coordination.

2. Formalization

At one end of the formalization scale are organizations with few written rules. People in such organizations most often act in accordance with the current situation. On the other hand, there are organizations with clear rules about who should behave, when and how, who makes decisions, who is responsible for what. Most likely, the first type of organization provides more possibilities for creativity. Organizations of the second type provide greater security for employees and greater certainty, but there is a danger of drowning in paperwork. At the same time, formal organizations are difficult to change, but they are easier to manage. The manager needs to look for the optimal balance between formalization and informal management.

3. Controllability rate

The third very important aspect of the structure is the norm of controllability. This indicator is determined by the number of people subordinate to one person. From this point of view, there is a flat organizational structure and a tower structure. Research says that in routine, repetitive, structured work, it is possible to have up to 30 people directly supervising you. This is the case when there are precise instructions and employees do not make their own decisions. A mid-level manager can have up to 10-12 subordinates. Since his subordinates are also managers or office workers, their work is less structured and they have the opportunity to make independent decisions. At the level of enterprise management, where strategic decisions are made, the manager can have no more than 5 people subordinate to him; otherwise, he is immersed in routine information from many sources and begins to accept a large number of operational decisions and does not have time for strategies and planning.

At the same time, the span of control may be wider if there are well-trained and trained personnel or a high level of formalization.

4. Centralization versus decentralization: who makes the decisions?

In some organizations, important decisions are made only by management at a certain level, in others, almost all personnel who can make at least some contribution to the decision are involved in the decision-making process. When forming the strategy of small organizations, where it is easy to take into account the opinions of everyone, the second method may be the most effective, but not always. This depends on the training and readiness of the staff. Conducted studies have shown that in the CIS countries, employee involvement is often ineffective and does not find support among employees. However, this is not an axiom.

We can say that organizations of the first type are centralized, while organizations of the second type are decentralized. At the same time, both systems have a number of advantages and disadvantages in the areas of personnel motivation, control over them, delegation of authority, etc.

Types of organizational structures

All organizational structures can be divided into following types:

  • simple linear
  • functional;
  • divisional (product; regional; project);
  • matrix;
  • adaptive;
  • organic;
  • conglomerate, etc.

In this lecture we will consider the first three as basic ones.

Functional Design: When Do Objectives Determine Structure?

This type of structure is adopted by newly created organizations, so it can be considered basic. Based on this design, departments, divisions, and work groups are based on specific tasks. This structure allows, as the organization grows, to add departments with new functions. Since employees with the same functions are not dispersed, with this design the effect of economies of scale is triggered, employees are encouraged to specialize and develop skills.

The disadvantages include:

  • this design provokes units to go in my own way;
  • employees with the same experience and knowledge tend to support each other and oppose other departments;
  • management may find that it is overloaded with the work of creating functional units;
  • Such a structure pushes employees to perform routine work, inhibits innovation and the ability to respond to changes in external conditions.

Rice. 4. Simple functional design

Divisional Design: When Product, Market or Geographic Niche, Projects drive Design

As an organization grows and new products and markets emerge, functional design can begin to hold back development. In this case, he begins to change. Departments with similar functions appear and begin to serve individual products or product groups, individual customer groups or geographic regions. Through a series of steps, the structure begins to turn into a production or divisional structure (for example, one accounting department, but different marketing departments for different products). Thus, single organization is divided into several autonomous units, although a number of departments common to all divisions remain, for example, financial (not to be confused with accounting). This may continue until the complete separation of production and support units.

Variants are possible in constructing such a structure. Special units can be created for individual products, geographical zones, markets, etc. This design increases the flexibility of the organization, sensitivity to the actions of competitors and the needs of consumers. Since this division reduces the size of the units to manageable sizes, it allows for better coordination of interactions.

Disadvantages include the separation of specialists and loss of economies of scale (eg, separate and expensive equipment). The second disadvantage is that downsizing departments reduces opportunities for employee growth (demotivation).

As you may have noticed, the functional and divisional approaches have their advantages and disadvantages. The matrix structure has the ability to combine the advantages of both. It is achieved by imposing production structure to functional. On the one hand, there are managers for various functions who have authority over production, marketing, etc. At the same time, there are managers of the production plan, whose authority extends over everything related to any one product. The result is that there are people who report to two managers. It is important to note that there are a small number of individuals at or near the top echelon reporting to two managers, the rest reporting to only one manager.

Rice. 5

In such a structure there is a Leading Leader, a person who controls both lines. Then there are people who lead individual departments or projects. And finally, there are managers with two bosses.

Organizations move to a matrix structure most often under certain conditions, which include: a complex and uncertain environment, the need to achieve economies of scale when using internal resources. This structure is especially often adopted by medium-sized organizations with multiple production lines that cannot organize separate production units for each line.

Figure 6. A typical example of a matrix design

Table 1 Advantages and disadvantages of the matrix structure

8. Contradictions in structure

As with everything in this world, any organizational structure, in addition to positive aspects, has negative sides. TO negative aspects, in addition to those already listed, there are internal, often congenital contradictions that must be remembered and taken into account when working. I would like to introduce some of them.

The basic contradictions built into the structure are:

  • specialization versus integration (first we specialize people and departments, then we begin the work of integration and coordination;
  • lack of anti-duplication functions (some functions and operations are not performed when others are duplicated);
  • underutilization of resources versus overload (some resources of the organization are idle, others are overloaded beyond normal);
  • lack of clarity versus lack of creativity (if an organization has complete clarity in everything, then creative problem solving is difficult, and vice versa)
  • autonomy versus dependence (both must have reasonable limits, just how to determine them);
  • delegation versus centralization;
  • many goals versus their absence (the absence of goals leads the organization to nowhere, many goals destroy priorities);
  • over-responsibility versus irresponsibility (responsibility is not delegated, it is assumed by everyone. And if one took on a lot of responsibility, this means that others either do not want to accept responsibility, or they did not get anything).

Another group of contradictions are contradictions that give rise to conflicts between employees. These conflicts are quite common in organizations in our country, and many of you will recognize them.

Line vs. Staff: Production vs. Support

As the organization grows and develops, more and more personnel appear in it who are not associated with the main production or service process. These are accountants, lawyers, HR specialists, computer specialists, marketers, etc. These are, first of all, specialists, and secondly, they are often quite close to management (they are physically closer). Managers listen to their advice or the advice of line (production) personnel and accept one or the other. These situations are a plus different conditions work inevitably leads to conflicts between them.

Accounting vs. Development Personnel

Many organizations have long-term planning departments, strategic planning, marketing, etc. These departments think in periods of more than a year. Finance professionals, especially accountants, often think in terms of a financial year. This gives rise to contradictions and misunderstandings.

Sales staff vs production staff

Sales, marketing, etc. personnel. always focused on the client. Personnel in production departments are most often focused on the production process. This gives rise to conflicts and contradictions between them.

The last three contradictions are most often resolved at the level of the manager at whom the lines of subordination of these units meet. Most often this is the first leader. These contradictions do not allow the leader to make rational decisions, since he is forced, in order to maintain peace in the organization, to satisfy the demands of one or the other, i.e., make political decisions. In addition, the manager loses significant time resolving disputes. You can probably get rid of these problems through strategic management (setting goals, planning ways to achieve them) and through building the culture of the organization (developing a mission, code of ethics, creating traditions, norms, etc.).

Unfortunately, only a few domestic organizations in Kazakhstan are seriously engaged in strategic management, and very few people think about organizational culture.

9. Organizational structure and environment

Having made sure that the external environment and internal conditions of the organization largely determine the structure of the organization, and even the style of management of the organization, we can ask the following question: does the external environment determine through various effects (complexity, stability, uncertainty, availability of resources)

execution of tasks? Despite the apparent simplicity of the question, the answer is quite complex. Indeed, in order to explore the connection between the environment, internal structure and execution, we must recognize the leading role of strategy in this. First of all, the environment influences strategy. In turn, different strategies determine different structures. The relationship between structure and strategy is reciprocal. In terms of these conclusions, the link between environment, strategy, structure and execution is assured. Successful organizations are those that provide high levels of congruence between these elements.

10. Technology and interdependence

Another very important part of structure (in terms of technology) is interdependence, which is defined as how people, departments or production units depend on each other to complete tasks.

The lowest level is collective dependence. Such dependence occurs when parts of one organization work independently and tasks are not divided between them.

Sequential dependence is when the product of one division is the raw material for another.

And interdependence arises when the product of one department is the raw material for another, and vice versa.

11. When to change the structure?

Last question, to which I would like to answer in this lecture: when to change the structure?

There are different approaches to the classification of organizational management structures.

Depending on the type of relationships between participants in the management process, the following types of management structures can be distinguished:

Linear organizational management structure

This is one of the most simple structures. It uses the principles of centralism and unity of command. Each team is headed by a manager who is accountable to a superior manager.

The manager is responsible for the results of the team's work. Subordinates carry out orders only from their immediate superior. A superior manager cannot give orders to employees without bypassing their immediate superior. In the process of enterprise management, a hierarchy of managers is formed (for example, CEO- production director - chief - foreman - foreman).

TO positive aspects Linear structure includes the following:

  • efficiency of making and implementing management decisions;
  • relative ease of control;
  • ensuring unity of management from top to bottom;
  • consistency of actions of performers.

The disadvantage of this structure is that the manager must be knowledgeable in many areas of management, and this leads to his overload and lack of competence in decision-making. Along with this, there is a disconnection of horizontal connections, and if there is large number levels of management, the adoption of management decisions is delayed.

Functional management structure

In this structure, specialists of the same profile are united into specialized structural units. For example, planners work in the planning department, finance specialists work in the finance department, and marketing specialists work in the marketing department. Management, starting from middle management, is structured along functional lines.

Advantages of a functional management structure:

  • specialization of managers and specialists improves the quality of management decisions made;
  • liberation of line managers from functions unusual for them.

The disadvantages of the functional structure include the lack of close relationships at the horizontal management level. In addition, the principle of unity of command ceases to apply, since the executive can receive instructions from several functional managers.

Disadvantages also include unclear responsibility, since the one who prepares the decision is usually not involved in its implementation.

Linear-functional management structure

A special feature of this structure is that management is carried out by line and functional managers. The line manager has a special staff (headquarters), consisting of management units (departments, services, groups, individual specialists) that specialize in performing one management function. At the same time, the line manager has complete authority over all management objects and functions.

There are two types of functional managers: those who implement one or more management functions.

This structure combines the advantages of linear and functional structures.

The disadvantages of the structure include the expansion of the management apparatus, its bureaucratization, the time for decision-making increases due to the need for approvals, and the problem of coordinating functional services remains.

Linear-functional management structures are currently the most common types of structures. The linear-functional type of structures is especially effective where the management apparatus performs repetitive standard procedures. It creates favorable conditions for the formalization of powers and responsibilities, but does not always have the necessary flexibility when new tasks arise.

Matrix management structure

This structure allows you to quickly respond to market changes due to its flexibility.

It is formed by combining two types of structures: linear and program-targeted. In accordance with linear structure management is built vertically: divisions are created that manage individual areas of activity - production, sales, supply, etc. In accordance with the program-target structure, horizontal management is carried out - program and project management, that is, the main task is to develop programs. Each program may include a number of projects.

To develop a program (project), a so-called matrix group , to which workers from various departments are sent. Members of the matrix (project) group have double subordination. On the one hand, they report to the program manager, and on the other, to the functional head of the unit (department) in which they constantly work. The powers of the project (program) manager are delegated by senior management, so they may vary depending on the complexity, importance and urgency of the project.

In a matrix structure, there is a distribution of program management responsibilities. The program manager is responsible for the quality and timing of program development. It is the responsibility of functional managers to create the necessary conditions for program development.

This structure is most effective when there is a need to develop and produce high-tech products, introduce technological innovations and quickly respond to market fluctuations.

The advantages of the matrix structure include the fact that it becomes possible to quickly rebuild the structure of the team when setting and solving new problems (flexibility and adaptability). Managers and specialists at all levels are involved in active creative activity to improve production. The efficiency of using resources and, above all, human resources is increasing.

However, the application of this structure is associated with a number of difficulties.

The main disadvantage is the complexity, which is associated with the need to establish and coordinate numerous connections.

Disadvantages also include the need for periodic retraining of workers due to program changes.

Matrix groups are not stable formations. When using them, workers constantly move from the main workplace to project groups and the entire organization becomes, as it were, temporary.

Divisional management structure

This structure uses the democratic principle of management. Centralization of strategic decisions at the highest level of management is combined with independent activity lower divisions (divisions). The company's top management (president, management board, board of directors) determines long-term guidelines and responsibility for generating profit.

The structure is often used by international companies with branches in different countries.

The divisional management structure has a number of varieties. The main types include the following:

  • regional;
  • grocery;
  • consumer.

Regional structure assumes that management is carried out for certain types of products produced in different territories of the country or abroad.

The structure allows maximum consideration of the specifics of local legislation, customs and consumer needs.

Peculiarity product structure consists in the fact that the authority to manage the production and sales of any product is transferred to one manager who is responsible for this type of product.

This type of management is typical for companies with a widely differentiated product range.

Using a product structure, big company can pay as much attention to a specific product as firms that produce one or two types of products pay to it.

In many cases, the highest level of management has a linear-functional structure, and the middle level can have a variety of management structures. This allows you to better take into account the characteristics of the company and take advantage of different management structures.