Linear-functional control structure: scheme. Coursework linear management structure

Different organizations are characterized by different types of management structures. However, there are usually several universal types of organizational management structures, such as linear, linear-staff, functional, linear-functional, matrix. Sometimes within a single company (usually a large business) there is a separation of separate divisions, the so-called departmentalization. Then the created structure will be divisional. It must be remembered that the choice of management structure depends on the strategic plans of the organization.

The organizational structure regulates:

Separation of tasks by departments and subdivisions;

Their competence in solving certain problems;

The general interaction of these elements.

Thus, the firm is created as a hierarchical structure.

Basic laws of rational organization:

Ordering tasks according to the most important points of the process;

Bringing management tasks in line with the principles of competence and responsibility, coordinating the “decision field” and available information, the ability of competent functional units to accept new tasks for solving);

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

Short control paths;

Balance of stability and flexibility;

Ability for goal-oriented self-organization and activity;

Desirability of stability of cyclically repeated actions.

Linear structure

This management structure is typical for small and medium-sized enterprises that produce goods and services that are not characterized by particular complexity.

With a linear structure, each unit has only one head, who is entrusted with the authority to make all management decisions; this leader reports only to a higher leader, and so on. In other words, within the framework of a linear organizational structure, subordinates depend only on their leader: a higher management body does not have the right to give them orders without the consent of the immediate supervisor.

Advantages :

1) simplicity

2) the specificity of tasks and performers.

Disadvantages:

1) high requirements for the qualifications of managers

Line-headquarters organizational structure

The management of the performers is entrusted to the line manager, under whom a headquarters is created. The headquarters does not have powers related to leadership and decision-making; his tasks are limited to helping the line manager in the implementation of certain management functions. The headquarters units are the planning and economic department, the legal service, the departments of analysis, coordination, controlling, the marketing department, accounting, etc. In some cases, headquarters units are vested with the right of functional management (this applies primarily to accounting, the personnel management department, the marketing department, and the planning and economic department).

Structure advantages:

1) line managers are relieved of the load, which allows them to better carry out operational management.

2) since the staff of the unit includes specialists in specific areas, the organization does not need generalists. The decisions made are more thoughtful.

Structure disadvantages:

1) the line manager has too much power;

2) lack of clear responsibility, since the specialist who prepares the solution is not involved in its implementation; as a result, there may be problems related to the feasibility of solutions.

Fig.1.21.3

With further complication of production, there is a need for specialization of workers, sections, departments of workshops, etc., and a functional management structure is being formed. The distribution of work occurs by function.

With a functional structure, the organization is divided into elements, each of which has a specific function, task. It is typical for organizations with a small nomenclature, stability of external conditions. There is a vertical here: the head - functional managers (production, marketing, finance) - performers. There are vertical and interlevel connections. The disadvantage is that the manager 's functions are blurred .

Advantages:

1) deepening specialization

2) improving the quality of management decisions

3) the ability to manage multi-purpose and multi-profile activities.

Disadvantages:

1) lack of flexibility

2) poor coordination of the actions of functional units

3) low speed of making managerial decisions

4) lack of responsibility of functional managers for the final result of the enterprise.


Fig.1.31.4

In fact, with a functional structure, performers simultaneously report to functional and line managers. Functional managers are responsible for making decisions, while the line manager decides issues related to operational management.

The linear-functional structure is a transformation of the functional one and at the same time combines the qualities of the linear structure. In it, the main share of authority is assigned to the line manager, who makes decisions regarding any actions of his subordinates (naturally, within the framework of the powers assigned to him). At the same time, there are functional leaders who advise and help him make the right decisions, developing their options; their management of the executors, although included in their powers, is nevertheless of an exclusively formal character. In fact, the line manager acts as a coordinator between various functional units.

The importance of functional units in a linear-functional management structure increases the more, the higher the level at which decisions are made.

Advantages:

1) the line manager performs the functions of a coordinator, which eliminates contradictions in decisions and orders;

2) the line manager is the only manager for each of the employees. As a result, stronger motivation and the inability to avoid fulfilling one's duties;

3) the level of competence of decisions remains at the same level as in the functional structure.

Disadvantages:

1) excessive complexity of vertical relations in the organization;

2) at the horizontal level, on the contrary, relations are too weakly developed, since decisions are ultimately made by the line manager. In this respect, the functional structure is more perfect, since it ensures the "connectivity" of the actions of the units united by the production process (at least in each of the areas for which the functional services are responsible).

3) the line manager, who is obliged to carry out operational management, is overloaded due to the need to make decisions of a strategic nature.

4) each link within the linear-functional structure strives to solve the tasks facing it, and not to achieve the goals facing the organization as a whole.

5) the linear-functional structure is of little use in large enterprises, since the line manager cannot adequately coordinate the activities of his subordinates.


Forms and methods of implementing the principles of formation of organizational structures make it possible to distinguish several types of them. So, according to the level (degree) of differentiation and integration of management functions, two classes of structures are distinguished:

  • mechanistic, or bureaucratic, pyramidal, based on the centralist type of integration;
  • organic, or adaptive, multidimensional, based on a combination of centralist and free types of integration.

Mechanistic (bureaucratic) pyramidal structures

Sustainability and rationalism were the priority parameters for the formation of bureaucratic structures for managing organizations already at the beginning of the 20th century. The concept of bureaucracy, formulated then by the German sociologist Max Weber, contains the following characteristics of a rational structure:

  • a clear division of labor, which leads to the emergence of highly qualified specialists in each position;
  • hierarchy of management levels, in which each lower level is controlled by a higher one and is subordinate to it;
  • the presence of an interconnected system of generalized formal rules and standards that ensures the uniformity of the performance of their duties by employees and the coordination of various tasks;
  • formal impersonality of performance of official duties by officials;
  • recruitment in strict accordance with qualification requirements; protection of employees from arbitrary layoffs.

Pyramid bureaucratic structures include: linear, functional, linear-functional, linear-staff, divisional organizational structures.

Linear organizational structure of management

The linear structure implements the principle of unity of command and centralism, provides for the performance by one head of all management functions, subordination to him on the rights of unity of command of all lower units (Fig. 11.1).

This is one of the simplest organizational management structures. Hierarchy is clearly manifested in linear structures: at the head of each structural unit there is a head endowed with all powers, who exercises sole management of subordinate employees and concentrates all management functions in his hands.

With linear management, each link and each subordinate has one leader, through whom all control commands pass through one channel at a time. In this case, management links are responsible for the results of all activities of managed objects. We are talking about the allocation of managers per object, each of which performs all types of work, develops and makes decisions related to the management of this object.

Since in a linear management structure decisions are passed down the chain from top to bottom, and the head of the lower level of management is subordinate to the head of a higher level above him, a kind of hierarchy of heads of this particular organization is formed (for example, head of a section, head of department, store director, site foreman, engineer , head of the shop, director of the enterprise). In this case, the principle of unity of command applies, the essence of which is that subordinates carry out the orders of only one leader. In a linear management structure, each subordinate has his own boss, and each boss has several subordinates. Such a structure functions in small organizations, and in large ones - at the lowest level of management (section, brigade, etc.).

The linear organizational structure of management has its advantages and disadvantages (Table 11.1).

Table 11.1

Advantages and disadvantages of a linear management structure
Advantages disadvantages
  • Unity and clarity of command.
  • Consistency of actions of performers.
  • Ease of management (one communication channel).
  • Clearly defined responsibility.
  • Efficiency in decision making.
  • Personal responsibility of the head for the final results of the activities of his unit.
  • High demands on the leader, who must be comprehensively prepared in order to provide effective leadership in all management functions.
  • Lack of links for planning and preparation of decisions.
  • Information overload of medium levels due to many contacts with subordinate and higher organizations.
  • Difficult communication between units of the same level.
  • The concentration of power at the top level of management.

In the functional structures, functional units are created, endowed with authority and responsibility for the results of their activities. Linear links differ from functional ones by the integration of object management functions, a set of powers and responsibilities. The bottom line is that the performance of certain functions on specific issues is assigned to specialists, i.e. each management body (or executor) is specialized in the performance of certain types of management activities. In an organization, as a rule, specialists of the same profile are combined into specialized structural units (departments), for example, a planning department, accounting, etc. Thus, the overall task of managing the organization is divided, starting from the middle level, according to the functional criterion. Hence the name - functional management structure (Fig. 11.2). Instead of universal managers who must understand and perform all management functions, there is a staff of specialists with high competence in their field and responsible for a certain area (for example, planning and forecasting).

The functional structure implements the principle of separation and consolidation of management functions between structural divisions, provides for the subordination of each lower-level linear division to several higher-level managers who implement management functions. The advantages and disadvantages of this structure are presented in Table. 11.2.

Table 11.2

Advantages and disadvantages of the functional management structure
Advantages disadvantages
  • High competence of specialists responsible for the implementation of functions (increasing professionalism).
  • Exemption of line managers from solving some special issues.
  • Standardization, formalization and programming of management processes and operations.
  • Elimination of duplication and parallelism in the performance of managerial functions.
  • Reducing the need for generalists.
  • Centralization of strategic decisions and decentralization of operational ones.
  • Excessive interest in the implementation of the goals and objectives of their units.
  • Difficulties in maintaining constant relationships between different functional units.
  • Emergence of tendencies of excessive centralization.
  • Duration of decision-making procedures.
  • Relatively frozen organizational form, with difficulty responding to changes.
  • The complexity of the division of power (multiplicity of subordination).

Experts point to a close relationship between the size of the firm and the organizational structure of management. The expansion of the size of the enterprise, the complication of internal relationships create conditions, and also necessitate the adoption of comprehensive decisions aimed at restructuring the organization of intra-company management, an increase in the size of the company leads to a deepening of structural differentiation (branches, levels of management, organizational units).

In turn, this leads to an increase in administrative and management costs, as well as costs associated with coordination, but does not reduce the advantage of homogeneity of large firms, which is due to the fact that these firms are managed from a single center. However, the structural differentiation inherent in large firms requires the use of indirect (economic) methods of management and coordination of the activities of various organizational units.

Types of committees

There is no doubt about the advantage of using committees in such work, which requires the coordination of actions of management units, consultation in decision-making, the definition of powers and responsibilities, and the development of a work schedule.

New types of organizational structures

Currently, such types of structures are developing as network and virtual organizations, organizations with "internal" markets, multidimensional organizations, market-oriented organizations, entrepreneurial organizations, participatory, adhocracy, intellectual, learning organizations, circular corporations, etc.

A network structure means that an organization disaggregates its core functions (manufacturing, sales, finance, research and development) between individual contracting companies brokered by a small parent organization. The organizational chart of a hypothetical network organization is shown in fig. 11.10.

Network organizations differ from organizations of other types in a number of ways. First, network organizations rely more on market mechanisms than on administrative forms of resource management. Second, many of the networks that have recently been developed involve a more active and motivated role for participants. Thirdly, in an increasing number of industries, networks represent an association of organizations based on cooperation and mutual ownership of shares by group members - manufacturers, suppliers, trading and financial companies.

The so-called virtual organization or structure is closely related to the network structure. Unlike traditional mergers and acquisitions, partners in virtual organizations share costs, use each other's production experience and access to international markets.

The hallmarks of networked virtual organizations of the future can be summarized as follows:

  1. the use of information technology to establish strong contacts;
  2. joining forces to realize new opportunities;
  3. lack of traditional boundaries - with close cooperation between manufacturers, suppliers, customers, it is difficult to determine where one company begins and another ends;
  4. the main advantages and disadvantages of such organizations are given in Table. 11.7;
  5. trust - partners share a sense of "common destiny", realizing that the fate of each of them depends on the other;
  6. Excellence – Since each partner brings their “core competencies” to the union, it is possible to create an organization that is modern in every way.

Table 11.7

The main advantages and disadvantages of the network structure of the organization
Advantages disadvantages
  • Competitiveness at the global level.
  • Flexible use of labor force.
  • High adaptability to market requirements.
  • Reducing the number of hierarchy levels (up to 2-3 levels) and, accordingly, the need for managerial personnel.
  • Lack of direct control over the activities of the company.
  • Possibility of unwanted loss of group members (if the subcontractor retires and his company goes bankrupt).
  • Low employee loyalty.

Multidimensional organization. This term was first used in 1974 by W. Goggin when describing the structure of Dow Corning Corporation. Multidimensional organizations are an alternative to the traditional type of organizational structures. As we know, in traditional organizational structures, the allocation of organizational units occurs, as a rule, according to one of the following criteria:

  • functional (finance, production, marketing);
  • grocery (for example, factories or production units that produce various goods and services);
  • market (say, by regional principle or by type of consumer).

Depending on the specifics of the activity, one or another criterion prevails in the construction of the organizational structure. Over time, under the influence of external changes and changes in the company itself (its size, scale of activities, other internal factors), the very organizational structure of the company and the prevailing principle of division divisions may change. For example, with access to regional markets, the traditional linear-functional structure can be transformed into a regional divisional one. At the same time, reorganization is a rather lengthy and complicated process.

In a dynamic external environment, the company must be able to respond instantly to changes, so a structure is required that would not need to be rebuilt. Such a structure is a multidimensional organization.

Multidimensional organizations are organizations in which structural units simultaneously perform several functions (as if in several dimensions) (Fig. 11.11), for example:

  • provide their production activities with the necessary resources;
  • produce a specific type of product or service for a specific consumer or market;
  • ensure the sale (distribution) of their products and serve a specific consumer.

The basis of a multidimensional organization is an autonomous working group (subdivision) that implements all three functions: supply, production, distribution.

Such a group may be a "profit center". Sometimes these can be independent companies.

Units are easily included in the organizational structure and can leave it, their viability depends on the ability to produce goods and services that are in demand. Product or service-oriented divisions pay internal and external suppliers on a contractual basis. Functional divisions (production, warehouse, personnel, accounting) provide services mainly to other divisions of the company, being suppliers for them. Thus, there is an internal market within the organization. Divisions respond flexibly to changing needs of internal and external customers. Consumers automatically control their suppliers. At the same time, the performance of the unit does not depend on the performance of another unit, which facilitates the control and evaluation of the unit's performance.

Features of multidimensional organizations are as follows:

  • departmental budgets are developed by the departments themselves, the company invests in them or gives loans;
  • in multidimensional organizations there is no dual subordination, as in a two-dimensional matrix model, the leadership of the group is one;
  • many divisions within a multidimensional organization can also be multidimensional. Divisions can also be multidimensional, even if the organization as a whole is not multidimensional (for example, a regional branch of a large corporation may be multidimensional, while the corporation as a whole is a divisional structure);
  • there is no need to carry out any reorganization of the organizational structure as a whole and the relationship of autonomous groups, units can simply be created, eliminated or modified;
  • each division of the organization can be completely autonomous, engaging in both recruitment and sales of finished products, etc .;
  • the main indicator of the effectiveness of the work of autonomous groups is the profit received; this simplifies the analysis and control over the activities of groups, reduces bureaucratization, and the management system works more efficiently.

The main advantages and disadvantages of multidimensional organizations are given in Table. 11.8.

Table 11.8

Key Advantages and Disadvantages of Multidimensional Organization
Advantages disadvantages
  • Flexibility and adaptability to changes in the external environment.
  • Reduction of bureaucracy and simplification of the management system.
  • Focus on ends, not means.
  • The combination of broad autonomy of departments using the synergy effect at the organization level.
  • In itself, the multidimensionality of the structure does not ensure the efficiency of the work of departments.
  • tendency towards anarchy.
  • Competition for resources within the organization.
  • Lack of direct control over units.
  • Difficulties in the implementation of strategic projects.

Circle organization. The basic principle of the circular organization is the democratic hierarchy. Leaders are not commanders, but act more like leaders. Unlike the hierarchical structure of traditional organizations, a circular organization has such features as the lack of undivided authority of leaders, the possibility of participation of each member of the organization in management, collective decision-making by the management of each member of the organization. These principles are implemented through the features of the structure of the circular organization, the main of which is that a council is formed around each leader (Fig. 11.12).

Each council, in addition to the head of the unit, includes his subordinates, as well as third-party representatives - heads of other structural units, external clients and consumers, public representatives. Participation in the council is mandatory for managers, but is voluntary for subordinates.

virtual organization. The emergence of the concept of a virtual organization is associated with the publication in 1992 of the monograph "Virtual Corporation" by W. Davidow and M. Malone.

A virtual organization is a network that includes the union of human, financial, material, organizational, technological and other resources of various enterprises and their integration using computer networks. This allows you to create a flexible and dynamic organizational system, the most adapted to the rapid creation of a new product and its introduction to the market. A virtual organization does not have a geographical center; the functioning of its divisions is coordinated with the help of modern information technologies and telecommunications.

The development of information technology has made it possible to make the physical presence of managers in the workplace unnecessary. Virtual associations are grouped according to the design principle, i.e. on a temporary basis.

as the need arises to create a certain product, implement a project, make a profit. The concept of a virtual organization creates fundamentally new business opportunities and is widely used in the 21st century.

An organization with an "internal market". The evolution of organizational structures is gradually evolving from hierarchical bureaucratic structures to matrix and project structures, and in recent decades to decentralized networks and business units.

The concept of "internal markets" is in stark contrast to the hierarchical structure. On the one hand, it allows you to use the potential of entrepreneurship within the organization, on the other hand, it has the disadvantages of market relations.

The basic principle of such organizations is the broad autonomy of departments (both linear and functional). Divisions are viewed as autonomous "internal businesses" that buy and sell goods and services and engage in intra- and inter-firm communications.

We list the principles of formation and functioning of organizations with "internal markets":

1. Transformation of the hierarchy into internal business units. All divisions are transformed into autonomous "internal enterprises", becoming responsible for the results of activities.

2. Creation of economic infrastructure, including common systems of accountability, communications and incentives.

3. Purposeful stimulation of synergy.

4. All departments are accountable for results, creative entrepreneurship is encouraged. Each division is treated as a small separate company that independently manages its activities and manages resources. Divisions are given the freedom to conduct business operations within and outside the organization.

5. Auxiliary functional divisions are commercial centers that sell their services to both other divisions of the firm and external customers.

So, considering the development trends of organizations and organizational structures, it can be noted that a modern organization is:

  • market oriented organization. They are organic, rapidly adaptable divisional or matrix organizations in which all of their parts (R&D, manufacturing, human resources, marketing, sourcing, sales, finance, service) are clustered around a market or markets. These are organizations "driven by the market";
  • entrepreneurial organization, i.e. an organization more focused on growth and on available opportunities and achievements than on controlled resources;
  • participatory organization - an organization that maximizes the participation of employees in management;
  • adhocracy organization - an organization that uses a high degree of freedom in the actions of employees, their competence and ability to independently solve emerging problems. This is an organic structure of a matrix, project, network type, with a predominance of informal horizontal connections. Often the structure of the organization is completely absent, the hierarchical structure is constantly changing, vertical and horizontal connections are predominantly informal;

An analysis of the experience of building organizational structures shows that the formation of management units is significantly influenced by the external and internal environment of the organization. This is the main reason for the impossibility of applying a single model of the management structure for all organizations. In addition, this impossibility is due to the specific features of a particular organization. The creation of a modern effective management structure should be based on scientific methods and principles for building organizational structures.

The main characteristic feature of the new systems of intra-company management should be: orientation to the long term; conducting fundamental research; diversification of operations; innovative activity; maximum use of the creative activity of the staff. Decentralization, reduction of levels in the administrative apparatus, promotion of employees and their payment depending on real results will become the main directions of changes in the administrative apparatus.

The process of modification of organizational management structures is developing in a number of specific areas. The main ones are the following.

1. Implementation of decentralization of production and marketing operations. To this end, within the largest companies, semi-autonomous or autonomous branches have already been created or are being created, fully responsible for profit and loss. These departments are entrusted with full responsibility for the organization of production and marketing activities. Each department fully finances its activities, enters into partnerships with any organizations on a commercial basis.

2. Innovative expansion, search for new markets and diversification of operations. This direction is implemented through the creation of innovative companies within large companies focused on the production and independent promotion of new products and technologies on the markets and operating on the principles of "risk financing". The widespread practice of large companies is the creation of small enterprises in the most promising areas, aimed at gaining a strong position in the market in the shortest possible time.

3. Debureaucratization, constant increase in the creative production efficiency of the personnel. To this end, a wide variety of measures are being taken, including the distribution of shares among the staff and the formation of enterprises collectively owned by their employees.

In modern conditions, not only fundamentally new forms of organization for our country are required, not only radically different methods of management, but also transitional modes of activity, a gradual transformation of one structure into another. In order to comprehensively take into account both the internal characteristics of organizations and dynamically changing external circumstances, as well as emerging progressive trends, it is necessary to use a systematic approach to the formation and reorganization of enterprises.

The systematic approach to the formation of the organizational structure is manifested in the following:

  • do not lose sight of any of the management tasks, without which the implementation of the goals will be incomplete;
  • to identify and interconnect, in relation to these tasks, a system of functions, rights and responsibilities along the vertical of management;
  • explore and institutionalize all connections and relationships along the horizontal of management, i.e. to coordinate the activities of different links and management bodies in the performance of common current tasks and the implementation of promising cross-functional programs;
  • provide an organic combination of vertical and horizontal management, meaning finding the optimal ratio of centralization and decentralization in management for the given conditions.

All this requires a carefully developed step-by-step procedure for designing structures, a detailed analysis and definition of a system of goals, a thoughtful selection of organizational units and forms of their coordination, and the development of relevant documents.

Depending on the nature of the links between the departments of the organization, the following types of organizational structures are distinguished: linear, functional, linear-functional (headquarters) and matrix.

(Figure 2.3) is one of the simplest organizational management structures. The scheme is built on the principle of "the result is a triangle." It is characterized by the fact that at the head of each structural unit there is a single leader, endowed with all powers and exercising sole leadership of subordinate employees and concentrating all management functions in his hands.

With linear management, each link and each subordinate has one leader, through whom all control commands pass through one single channel. Evaluation of performance results in a linear management structure has the form of a triangle. In this case, management links are responsible for the results of all activities of managed objects. We are talking about the allocation of managers per object, each of which performs all types of work, develops and makes decisions related to the management of this object.

Rice. 2.3.

Since in the linear management structure decisions are passed along the chain “from top to bottom”, and the head of the lower level of management is subordinate to the head of a higher level above him, a kind of hierarchy of the heads of the organization is formed (for example, site foreman, engineer, shop manager, director of the enterprise). Schematically, the linear control structure can be represented in the form of fig. 2.4.

Rice. 2.4.

In this case, the principle of unity of command applies, the essence of which is that subordinates carry out the orders of only one leader. A higher management body does not have the right to give orders to any performers, bypassing their immediate superior. As can be seen from fig. 2.4, in a linear management structure, each subordinate has a boss, and each boss has several subordinates. Such a structure functions in small organizations at the lowest level of management (section, brigade, etc.).

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

Examples of enterprises with a linear organizational structure can be, for example, for large enterprises operating in a fairly stable external environment, "Komi Energy Retail Company" (Fig. 2.5), for state organizations "Federal Antimonopoly Service (FAS)" of Russia (Fig. 2.6 ).

As can be seen from fig. 2.5, at the head of the organization is a single leader, each unit has a chief through whom all management teams pass. As a result, the management structure of the Komi Energy Retail Company fully complies with the main criteria of linear management.

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

Advantages:

  • unity and clarity of command;
  • coordination of actions of performers;
  • ease of management (one communication channel);

Rice. 2.5.

The management structure of the organization "Komi Energy Retail Company"



Rice. 2.B. The management structure of the organization "Federal Antimonopoly Service (FAS)" of Russia

  • clear responsibility;
  • efficiency in decision-making;
  • personal responsibility of the head for the final results of the activities of his unit.

Disadvantages:

  • high demands on the leader, who must be comprehensively prepared to provide effective leadership in all management functions;
  • lack of links for planning and preparing decisions;
  • information overload, many contacts with subordinates, superiors and shift structures;
  • difficult connections between authorities;
  • concentration of power at the top.

Serious shortcomings of the linear structure to a certain extent can be eliminated by the functional structure. Functional management is carried out by a certain set of units specialized in the performance of specific types of work necessary for decision-making in the linear management system.

The idea is that the performance of individual functions on specific issues is entrusted to specialists, i.e. each governing body (or executor) is specialized in the performance of certain types of activities. In an organization, as a rule, specialists of the same profile are combined into specialized structural units (departments), for example, a marketing department, a planning department, accounting, etc. Thus, the overall task of managing an organization, starting from the middle level, is divided according to the functional criterion into several elements. Hence the name - functional management structure.


Rice. 2.7.

Functional management exists along with linear management, which creates a double subordination of performers. As can be seen from fig. 2.7, instead of universal managers who must understand and perform all management functions, a staff of specialists appears who are highly competent in their field and are responsible for a certain area (for example, planning and forecasting). Such functional specialization of the management apparatus significantly increases the effectiveness of the organization.

An example of an enterprise with a functional organizational structure can be, for example, StroyHolding LLC, whose general director has his own analytical department (Fig. 2.8). As can be seen from the figure, in the LLC StroyHolding organization, specialists of the same profile are combined into separate divisions. This division can significantly improve the efficiency of company management.

Like a linear structure, a functional structure has its advantages and disadvantages. Advantages:

  • high competence of specialists responsible for the implementation of specific functions;
  • release of line managers from solving some special issues;
  • standardization, formalization and programming of phenomena and processes;
  • exclusion of duplication and parallelism in the performance of managerial functions;
  • reducing the need for generalists. Disadvantages:
  • excessive interest in the implementation of the goals and objectives of "their" units;
  • difficulties in maintaining constant relationships between various functional services;
  • emergence of tendencies of excessive centralization;
  • lengthy decision-making process;
  • relatively frozen organizational form, with difficulty responding to changes.

The disadvantages of linear and functional management structures are largely eliminated linear functional structures(Fig. 2.9).

With such a management structure, the full power is assumed by the line manager, who heads a certain team. In developing specific issues and preparing appropriate decisions, programs, plans, he is assisted by a special apparatus consisting of functional units (departments, departments, bureaus, etc.).


Rice. 2.8.


Rice. 2.9.

Thus, the linear-functional structure includes special units under line managers that help them carry out the tasks of the organization.

The main scope of the linear-functional organizational structure is large state structures, for example, the Federal Migration Service (FMS) (Fig. 2.10), in which a number of units carry out organizational and methodological management of the activities of the territorial bodies of the FMS of Russia.

Advantages of a linear functional structure:

  • deeper preparation of decisions and plans related to the specialization of employees;
  • release of the chief line manager from in-depth problem analysis;
  • opportunity to attract consultants and experts. Disadvantages of a linear-functional structure:
  • lack of close relationships and interaction at a horizontal level between production departments;
  • insufficiently clear responsibility, since the one who prepares the decision, as a rule, does not participate in its implementation;
  • overly developed system of interaction along the vertical: subordination according to the management hierarchy, i.e. tendency towards over-centralization.

The matrix control structure is created by combining the structures of two


Rice. 2.10.

types: linear and program-target. During the functioning of the program-target structure, the control action is aimed at fulfilling a certain target task, in the solution of which all parts of the organization participate.

As can be seen from fig. 2.11, special headquarters bodies (persons or a group of persons) are introduced into the established linear-functional structure (temporarily or permanently), which coordinate the existing horizontal connections for the implementation of a specific program (project), while maintaining the vertical relations inherent in this structure. The main part of the workers involved in the implementation of the program is subordinate to at least two managers, but on different issues.

With a matrix management structure, the program (project) manager does not work with specialists, but with line managers to whom they are directly subordinate, and determines what and when should be done for a specific program. Linear


Rice. 2.11.

leaders decide who and how will perform this or that work.

An example of a matrix organizational structure of an enterprise can be, for example, the organizational structure of a university (Fig. 2.12).

The matrix structure also has its advantages and disadvantages. Advantages of the matrix structure:

  • the ability to quickly respond and adapt to changing internal and external conditions of the organization;
  • increasing the creative activity of administrative and managerial personnel through the formation of program units that actively interact with functional structures;
  • rational use of personnel due to the specialization of various types of labor activity;
  • increase in motivation of activity due to decentralization of management and strengthening of democratic principles of leadership;
  • strengthening control over individual tasks of the project;
  • reducing the burden on high-level managers by delegating a certain part of the authority;
  • increasing personal responsibility for the implementation of the program as a whole and its constituent elements.

Disadvantages of the matrix structure:

Complex structure of subordination, as a result of which there are problems associated with setting the priorities of tasks and allocating time for their implementation;


Rice. 2.12.

  • the presence of an unhealthy competitive spirit among program managers;
  • the need for constant monitoring of the balance of power between the tasks of management by objectives;
  • difficulty in acquiring the skills needed to work on the new program.

Matrix management structures, which supplemented the linear functional organizational structure, opened up a qualitatively new direction in the development of the most flexible and active program-targeted management structures. They are aimed at raising the creative initiative of managers and specialists and identifying opportunities for a significant increase in production efficiency.

test questions

  • 1. What are the goals of the organization's management?
  • 2. What are the tasks of the organization's management?
  • 3. What are the functions of the organization's management?
  • 4. What is the management activity in the organization?
  • 5. What is the essence of the vertical division of labor?
  • 6. What is the essence of the horizontal division of labor?
  • 7. What is the essence of the functional division of labor?
  • 8. What types of organizational structures do you know?
  • 9. What are the advantages of a matrix organizational structure?
  • 10. What are the advantages of a linear functional organizational structure?

What is a functional management structure? What is it, what is connected with it, what scheme does it have? We will try to answer these questions and others in the course of this article.

The functional management structure is a type of structure that is formed based on the main areas in which an organization operates. In this case, the units will be combined into special blocks.

A lot of large and medium-sized enterprises and organizations use an approach called “functional” when forming departments. What does it mean? This means that the functional management structure implies the use of the functions of the direction in which the company operates. This may be the sale of products, their production and similar actions. The blocks will be formed according to the functions, that is, they will have the same root names that are characteristic of the direction of activity.

The functional management structure has some features: the separation of units located within the boundaries of the blocks can be carried out only according to certain approaches. Let's give a simple example: the organization of workshops takes place with an eye on the products being manufactured. At the same time, the organization of sites will be dictated by the technologies that are used in the production of products.

Structure blocks

The functional structure of management assumes the presence of three blocks.

The first is production. It includes those divisions that are in one way or another connected with the core products manufactured by the company. The connection can also be between services and their provision, and not only seen in the case of products. The production block also houses auxiliary divisions that provide all the services necessary for the functioning of the main divisions. Even in the production block there are those divisions that service both auxiliary and main processes. Well, the units of the experimental type complete this chain. They are responsible for the production of prototypes of a particular product. The role of departments can be very different. However, it will directly depend on the nature of the activities carried out by the organization. After all, prototypes are not created in every company. And the funds that are used for auxiliary production are also not available in every company.

The second block is management. The functional structure of management in this case indicates that the block will contain service, information, pre-production (that is, preparatory), administrative and advisory divisions and commissions. Let's look at this issue a little more specifically. Information departments include various kinds of archives and libraries. The service divisions will carry out their activities dealing with issues related to marketing research. Administrative commissions are nothing but legal departments and accounting departments, planning services. But advisory commissions can be represented as committees working in the field of improving technology and the organization as a whole.

The third block, which uses the functional management structure, is the units related to the social sphere. Examples include certain children's institutions and health centers, various clubs and recreation centers, and so on.

Where is the functional organizational structure of management applied?

The question of the scope to date has already been studied far and wide. There are 5 main areas where the functional organizational structure of management is applied. The first area is single-product enterprises. The second is enterprises that implement quite complex in various senses and long-term projects. They can also be innovative. The third area in which the functional structure of enterprise management is applied is large companies and firms that are focused on the production of a certain type of product, that is, which have their own specialization. The fourth area of ​​application of this management structure is the organization of design and research profile. Well, this list is completed by enterprises with a very narrow specialization.

What tasks does the functional management system solve?

In the course of using this structure, some problems arise that management faces. Let's try to list them:

1) The complexity of providing communications.

2) Leveling the load, which falls on the share of a particular unit.

3) Careful selection of personnel, specialists who will be allowed to work in functional units.

4) Assistance in coordinating units.

5) Prioritization, selection of specialists.

6) Development and implementation of motivational, special mechanisms.

7) Prevention of separatist processes within units.

What are the benefits of a functional management structure?

1) Specialists are competent enough in the implementation of certain specific functions.

2) Line managers practically do not participate in solving special issues. It is also possible to expand the opportunities that line managers will have at the same time as reducing their workload. Managers will be able to take over the operational management of production processes by redirecting questions to other relevant persons.

3) Experienced specialists participate in the role of consultants, if necessary. As a result, there is no need (well, or noticeably reduced) to involve specialists with a broader work profile.

4) The risk of erroneous decisions will not be equal to zero, but it will certainly be reduced to it.

5) When performing managerial functions, duplication will be excluded.

What are the disadvantages of a functional management structure?

1) It is quite difficult to maintain permanent mutual relations established between services.

2) Decision making requires a lot of time, it is a lengthy procedure.

3) Functional services often lack mutual understanding among themselves. Actions are uncoordinated, there is no unity in them. At the same time, the responsibility of the performers, which they must bear for the work performed, is reduced. All this is due to the fact that different performers receive instructions not just from different leaders - they receive them from several leaders at the same time.

4) In the implementation of tasks and goals, there is an excessive interest of certain departments.

5) Personal responsibility is reduced. No one wants to take responsibility for the final result.

6) The control required to monitor the process and its progress is quite complex. And this applies to individual projects, and the entire region as a whole.

7) The organizational form reacts to changes with great difficulty, it has already frozen and does not develop.

Varieties of the functional control system

One of the varieties is a linear-functional management structure. Its scheme is shown in the figures below.

The linear-functional structure is used for the division of managerial labor. At the same time, the functional units should advise and provide assistance on the development of certain issues, as well as prepare plans and programs, decisions. The entire load associated with command and control is shifted to the linear links.

The linear-functional control structure, the scheme of which was shown earlier, has its advantages and disadvantages. Actually, they will become the subject of further analysis of the topic.

Managers belonging to the divisions of the functional type have a certain influence on the divisions of production, but only in a formal sense. On their own, in most cases, they cannot do anything, that is, they are not able to give orders without the confirmation of the relevant representatives. In general, the role of functional services has a direct relationship with the scale in which the activity is carried out. They are also associated with the governance structures of an organization or enterprise. All technical training falls to the share of functional services. They should work out the questions in advance and leave options for their solutions. In this case, questions may relate to the management of the production process.

What are the advantages of a linear-functional structure?

1) Decisions and plans are prepared more carefully and deeply. Hence, they are more efficient. At the same time, plans can also be associated with the specialization of individual employees.

2) Line managers are released from resolving a number of issues, which, in turn, reduces the workload. These are issues related to logistics, financial calculations and their planning, as well as other issues.

3) The presence of a certain connection and a clear hierarchical ladder. The employee is not subject to several leaders, but only to one.

What are the disadvantages of a linear-functional structure?

1) Each individual link does not want to work for the common good of the company, to take on other people's tasks. The link in most cases works only on its own goals, performing a narrow range of functions.

2) There are no close relationships between departments. There is practically no interaction between these components. It's about the horizontal.

3) But vertically, the interaction, on the contrary, is very strongly developed. Even much more than necessary.

Scheme

The functional control structure, an example of which was given almost at the very beginning of this article, has a diagram below.

It is characterized by the creation of certain divisions. In addition, each of them will have certain tasks that must be performed.

An example of a linear-functional management structure can be demonstrated by the federal migration service. Another diagram of this control structure is presented below.

Conclusion

The advantages and disadvantages of the functional management structure were considered in the course of the article. The definition of the concept was also given, the blocks that are part of the functional structure of management are described.

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

Fig.1. Linear organizational structure of enterprise management

Advantages of a linear management structure:

a clear system of mutual 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;

· fast reaction of executive divisions to direct instructions of higher.

coordination of actions of performers;

Efficiency in decision-making;

simplicity of organizational forms and clarity of relationships;

Minimum production costs and minimum cost of products;

Disadvantages of a linear structure:

Lack of links dealing with strategic planning; in the work of managers at almost all levels, operational problems ("churn") dominates over strategic ones;

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

Lack of flexibility and adaptability to changing situations;

The criteria for the efficiency and quality of the work of departments and the organization as a whole are different;

The tendency to formalize the evaluation of the efficiency and quality of work of departments usually leads to the emergence of an atmosphere of fear and disunity;

· a large number of "management floors" between workers producing products and the decision maker;

overload of top-level managers;

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

Thus, 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.

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

The linear control structure is simple and easy to understand. Clearly defined rights and obligations of all its participants create conditions for prompt decision-making.

As the company grows, the technology becomes more complex, and the range of manufactured products expands, it becomes necessary to create additional functional divisions in the structure of the enterprise that solve general and functional tasks.

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

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

Rice. 8.2. Diagram of the functional structure. The circles indicate the performers

The main disadvantage is the complexity and inefficiency (many divisions, and consequently, control channels).

Experience shows that it is expedient to use the functional structure in those enterprises that produce a relatively limited range of products, operate in stable external conditions and require the solution of standard management tasks to ensure their functioning. Examples of this kind are enterprises operating in the metallurgical, rubber industry, in industries that produce raw materials.

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

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

  1. Pros:
  • removal of most of the load from the highest level of management;
  • stimulating the development of informal ties at the level of structural blocks;
  • reducing the need for generalists;
  • as a consequence of the previous plus - improving the quality of products;
  • it becomes possible to create headquarters substructures.
  • Minuses:
    • significant complication of communications within the enterprise;
    • the emergence of a large number of new information channels;
    • the emergence of the possibility of transferring responsibility for failures to employees of other departments;
    • difficulty in coordinating the activities of the organization;
    • a trend towards over-centralization.

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

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

    Rice. 8.3. Diagram of the divisional structure

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

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

    Advantages of a divisional structure:

    · it provides management of diversified enterprises with a total number of employees of the order of hundreds of thousands and territorially remote subdivisions;

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

    · with the expansion of the boundaries of the independence of the departments, they become "profit centers", actively working to improve the efficiency and quality of production;

    Closer relationship between production and consumers.

    Disadvantages of the divisional structure:

    a large number of "floors" of the management vertical; between the workers and the production manager of the unit - 3 or more levels of management, between the workers and the company's management - 5 or more;

    disunity of headquarters structures of departments from the headquarters of the company;

    The main connections are vertical, therefore, there are shortcomings common to hierarchical structures - red tape, overload of managers, poor interaction in resolving issues related to departments, etc.;

    · duplication of functions on different "floors" and as a result - very high costs for the maintenance of the management structure;

    · In departments, as a rule, a linear or linear-headquarters structure with all their shortcomings is preserved.

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

    Matrix (program - target) management structure

    Such a structure is a network structure built on the principle of dual subordination of executors: on the one hand, to the direct head of the functional service, which provides personnel and technical assistance to the project manager, on the other hand, to the project or target program manager, who is endowed with the necessary authority to carry out the management process. With such an organization, the project manager interacts with 2 groups of subordinates: with permanent members of the project team and with other employees of functional departments who report to him temporarily and on a limited range of issues. At the same time, their subordination to the direct heads of subdivisions, departments, and services is maintained. For activities that have a clearly defined beginning and end, projects are formed, for ongoing activities - targeted programs. In an organization, both projects and targeted programs can coexist.

    Advantages of the matrix structure:

    better orientation to project (or program) goals and demand;

    · more effective day-to-day management, the ability to reduce costs and increase the efficiency of resource use;

    more flexible and efficient use of the organization's personnel, special knowledge and competence of employees;

    · the relative autonomy of project teams or program committees contributes to the development of decision-making skills, managerial culture, and professional skills among employees;

    Improving control over individual tasks of the project or target program;

    · any work is organizationally formalized, one person is appointed - the "owner" of the process, serving as the center of concentration of all issues related to the project or target program;

    · the response time to the needs of the project or program is reduced, since horizontal communications and a single decision-making center have been created.

    Disadvantages of matrix structures:

    Difficulty in establishing clear responsibility for work on the instructions of the unit and on the instructions of the project or program (a consequence of dual subordination);

    · the need for constant monitoring of the ratio of resources allocated to departments and programs or projects;

    · high requirements for the qualifications, personal and business qualities of employees working in groups, the need for their training;

    · frequent conflict situations between heads of departments and projects or programs;

    The possibility of violating the rules and standards adopted in the functional units due to the isolation of employees participating in the project or program from their units.

    Conclusion: the introduction of a matrix structure gives a good effect in organizations with a sufficiently high level of corporate culture and qualifications of employees, otherwise management can be disorganized (at Toyota, the introduction of a matrix structure took about 10 years). The effectiveness of the implementation of the ideas of the modern philosophy of quality in such a structure has been proven by the practice of Toyota.

    Linear - headquarters organizational structure.

    With a further increase in the number of employees, in order to increase the efficiency of the enterprise, a qualitative structural restructuring of the enterprise is already necessary - the creation of a headquarters for the head (in the simplest case, an assistant) for more efficient management of the enterprise (linear-staff organizational structure). In principle, it is also possible at one level of the hierarchy.

    In a linear-staff organizational structure, the headquarters works only with the head, and does not work with subdivisions. With the expansion of the enterprise, the expansion of its functions, the increase in the issues solved by the head together with the headquarters, the overload of the head begins again. The horizontal connection between the head and the headquarters becomes the bottleneck of the enterprise, the economic efficiency of the enterprise begins to decline.

    Advantages of a linear - staff structure:

    · deeper than in the linear, study of strategic issues;

    some unloading of top managers;

    the possibility of attracting external consultants and experts;

    · In empowering staff units with functional leadership, such a structure is a good first step towards more effective organic management structures.

    Disadvantages of a linear - staff structure:

    · insufficiently clear distribution of responsibility, since the persons preparing the decision do not participate in its implementation;

    tendencies towards excessive centralization of management;

    · similar to the linear structure, partially - in a weakened form.

    Conclusion: a linear - staff structure can be a good intermediate step in the transition from a linear structure to a more efficient one. The structure allows, although to a limited extent, to embody the ideas of the modern philosophy of quality.

    The way out is the creation of functional units that will work not only with the head, but directly with all structural units, so we are moving to a linear functional organizational structure.

    Linear - functional structure .

    With an increase in the size of an enterprise with a linear-staff organizational structure, the number of emerging issues that need to be addressed increases, the headquarters grows, and the workload of the Manager again becomes excessive.

    The way out is the creation of functional divisions. Emerging issues are considered not at the level of the Head, but at the level of structural units. At the same time, structural units, together with functional ones, consider emerging issues and prepare draft decisions, without first contacting the Head. He receives, at the same time, not questions, but only answers - prepared draft decisions.

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

    In this structure, indications of functional units are advisory in nature. They, together with line divisions, prepare only draft decisions. Ultimately, the final decision is made by the head of the enterprise, but all the routine preparation of these decisions is already done without him, at the lower structural levels.
    Compared to the linear and linear-staff organizational structures, overhead costs are still increasing, but the increase in the economic efficiency of the enterprise is achieved by further improving the quality of decisions made and reducing the time for their adoption.

    Functional services can be organized both on a design basis and on other grounds, while obtaining new organizational structures. Well, the structure can be not only two-dimensional, but also multidimensional.
    However, with a further increase in the size of the enterprise, the manager and functional units may no longer be able to cope with the increasing volume of work, with the increasing flow of decision projects, the economic efficiency of the enterprise will decrease, and a transition to functional or, in a broader sense, matrix organizational structures will be required.

    The main scope of the linear-functional organizational structure is small and medium-sized general enterprises

    Product organizational structure.

    The product-based organization (Figure 11.4) is one of the first forms of divisional structure, and today most of the largest consumer goods manufacturers with diversified products use a product-based organization.

    When using a divisional - product management structure, departments are created for the main products. Managing the production and marketing of any product (service) is transferred to one person who is responsible for this type of product. Heads of auxiliary services report to him.

    Product (commodity) organizational structure characterized by the fact that the manager has the ability to coordinate and control all work on the product (group, family of goods), knowing well its market opportunities. Disadvantages: high possibility of conflicts with unclear separation of powers, product implementation by functional managers.

    The product structure makes it easy to handle the development of new products based on competition, technology improvement or customer satisfaction.

    Project management structure

    The basic principle of building a project structure is the concept of a project, which is understood as any purposeful change in the system, for example, the development and production of a new product, the introduction of new technologies, the construction of facilities, etc. The activity of an enterprise is considered as a set of ongoing projects, each of which has a fixed start and end. For each project, labor, financial, industrial, etc. resources are allocated, which are managed by the project manager. Each project has its own structure, and project management includes defining its goals, forming a structure, planning and organizing work, and coordinating the actions of performers. After the project is completed, the project structure falls apart, its components, including employees, move to a new project or leave (if they worked on a contract basis). In form, the project management structure can correspond to brigade (cross-functional) structure, and divisional structure , in which a certain division (department) does not exist permanently, but for the duration of the project.

    The project structure (Fig. 3) is completely opposite to the matrix one in its organization. Here, the project teams sort of form their own temporary units, created for the duration of the project and led by project managers. With such an organization, functional units perform a service function in relation to projects, that is, they provide them with services, such as technical support or accounting services. Functional departments also play the role of a pool of resources (for example, specialists) dynamically redistributed between projects. In the project structure, team members are focused only on achieving the goals of the project and report only to its leader.

    With such an organization, the project is actually a branch of the company, while the “laws” under which the employee operates within the framework of the project are completely determined by the project management. Such a structure is effective in large, significant projects for the company, as a rule, lasting more than two years.

    Benefits of a project management structure:

    · high flexibility;

    · Reducing the number of managerial personnel in comparison with hierarchical structures.

    Disadvantages of the project management structure:

    very high qualification requirements, personal and business qualities of the project manager, who must not only manage all stages of the project life cycle, but also take into account the place of the project in the company's project network;

    splitting of resources between projects;

    the complexity of the interaction of a large number of projects in the company;

    complication of the process of development of the organization as a whole.

    Conclusion: the advantages outweigh the disadvantages in enterprises with a small number of concurrent projects. The possibilities of implementing the principles of modern philosophy of quality are determined by the form of project management.

    Business Unit Management (BUM)

    The symbiosis of the matrix organizational structure and the divisional organizational structure is a network organizational structure, which is characterized by high autonomy of linear structural units (up to their registration by legal entities) with strict functional regulation in certain areas.

    An example of a network organizational structure is the Business Unit Management (BUM) technology and financial management structure. It is based on the introduction of full internal cost accounting - intra-firm purchase and sale of intermediate results of labor and the formation of internal and external competition in the enterprise.

    Fig.6. Organizational and financial management structure Business Unit Management (BUM) (management using business units).

    The dotted lines from the head (or possible functional units) in this figure are not directives, but "rules of the game" - long-term provisions and regulations. Horizontal dotted lines - contractual relations between structural divisions (domestic market), and between divisions and the external market.

    Each structural subdivision (business unit) is an independent structural unit that is on full cost accounting. Each business unit has a defined area of ​​activity and some "rules of the game", but otherwise it is independent. It buys the output of other business units and sells the output of its work to others, and not only in the internal "market" of the enterprise. If the conditions of the external market are more favorable for it, it can refuse the services of other business units and work in the external market.
    This structure forces all business units to work with a constant eye on the external market. As soon as it inflates its prices, it may immediately find itself without internal orders, go bankrupt, be disbanded. The motivation for the financial result of the business unit is very strong. But this motivation is mainly for a momentary result, you even have to look for ways (in the "rules of the game") how to correct this bias.
    Strong financial motivation of business units, in turn, increases the economic efficiency of the enterprise. But the manageability of the enterprise is practically lost - business units are independent. The enterprise actually ceases to work as a single company with its mission, strategy, plans to achieve strategic results. These questions are of little interest to business units.
    In Russia, this organizational management structure was used by some large enterprises and banks during the transition period from socialism to capitalism, but then almost all enterprises abandoned it. It does not correspond to the modern management philosophy focused on the mission, vision and strategic goals of the enterprise.

    Innovation-production management structure.

    Innovative - production management structure - a management structure that provides for the separation of:

    · - management of departments that carry out innovative functions: strategic planning, development and preparation of new products;

    · - day-to-day operational management of well-established production and marketing of mastered products.

    Innovative production enterprises (IPP) are understood as unified organizational and economic structures, consisting of scientific organizations, manufacturing enterprises, suppliers of raw materials, materials and components, consumers of finished products, as well as including systems of transport and storage facilities created with the aim of developing , production and sale of science-intensive, high-tech products.

    The innovation and production complex is a set of organizationally and financially interconnected innovation organizations and manufacturing enterprises, as well as entities of the infrastructure of innovation activity, which are a single economic system that integrates scientific, technical, technological, production, financial, information resources to achieve the goals of innovation and production activities and for joint effective development based on meeting the needs of the market for innovation.

    Innovation and production complexes are concentrated in a certain territory, as a rule, they operate within the framework of a regional innovation system or several administrative-territorial units. It is required to characterize in detail each aspect of the definition of the innovation-production-complex.

    Aspect 1. The name "innovation-production" implies a combination of innovative and production characteristics of the complex. This is due to their equivalence, close interdependence, compliance with the process of development and production of innovations.

    Aspect 2. Relationships as an integral characteristic of the complex are divided into two types - organizational and financial. They allow you to link the participants of the innovation and production complex, determine their powers, responsibilities, nature of activities, functions performed.

    Organizational relationships are determined through direct and feedback links of the management system of the innovation and production complex, its structure, organizational and legal forms of its participants, and organizational processes. Financial relationships are manifested through mutual financial interests, financial flows, financial results and the mechanism for their distribution. In addition to these relationships, participants in the innovation and production complex have a number of other connections - information, marketing, resource, etc.

    Aspect 3. The composition of the innovation and production complex is determined by its participants.

    The participants of the innovation and production complex are:

    1) Innovative organizations are organizations and enterprises whose main goal is to develop and implement innovations in order to meet market needs and make a profit.

    2) Manufacturing enterprises conducting innovative activities or participating in the implementation of the innovation process.

    3) The subjects of the innovation infrastructure are a set of organizations and structures supporting innovation activities on the basis of regulatory, material, financial, organizational, methodological, information, educational and consulting services for innovation processes. These entities are not always directly involved in the creation of innovations, but are auxiliary organizations.

    Aspect 4. The unity of the economic system is manifested in the fact that the innovation and production complex has systemic characteristics and can be considered as a single economic system for managing the innovation and production activities of its subsystems - enterprises, innovation organizations, and subjects of innovation support.

    Aspect5. The integration nature of the complex is determined by its essence, since it connects several business entities. By definition, integration [from Lat. integration - restoration, replenishment from integer - whole] - this is the union of any parts into a whole.

    Aspect6. The resources of the innovation and production complex should be considered in combination with each other.

    Aspect 7. The goals of innovation and production activities are considered in relation to each other, and not as separately set innovation goals and production goals. This is important for achieving the unity of all types of activities of the complex, determining its strategy, directions of functioning and development, and highlighting a clear hierarchy of goals.

    The essence of the innovation and production complex is the spatio-temporal combination of many elements of innovation and production activities, their micro- and macro-environment for the development of innovative projects and programs and their implementation in production in order to achieve a cumulative innovation and production effect and a qualitative change in economic activity.

    To characterize the innovation and production complex, the author defines a number of approaches to describing its content:

    1) it is a set of interrelated subsystems, components and elements of an innovative production nature, and each of the subsystems has both production and innovative characteristics;

    2) this is the interaction of the subject and the object of control, which can be considered at different levels of the hierarchy of the complex;

    3) it is a part of a more complex economic system, interacting with other components and subordinate to its common goal; at the same time, each of the subsystems of the innovation and production complex is revealed as a complex system of a lower level;

    4) it is a complex of interconnected business processes of innovation and production activities that use the available resources and conditions to achieve the planned results;

    5) this is a single innovation and production cycle from the development of innovative ideas to the expanded production of innovations, provided with information, methodology, resources, regulatory materials;

    6) it is a flexible mechanism for the interaction of many elements of innovation and production activities, which works continuously, clearly and purposefully and suppresses emerging risks;

    7) it is a source of development of the economic system based on intellectual property, innovation and production potential, human capital, production resources.

    The essence of an efficiently operating innovation and production complex is to combine its production and innovation elements, coordinate their activities, maintain the innovation infrastructure and determine ways to continuously increase the efficiency of innovation and production activities. To do this, it is necessary to analyze and assess the current state of the complex, identify positive and negative aspects, and develop promising directions for its development.

    Modern types of organizational structures include: horizontal, multidimensional, network, shell, virtual, fractal structures. According to the construction features, one can also distinguish a ring structure, a “wheel”, a star, multi-connected, cellular, mixed structures.

    Companies of the future.

    network organizations. Network organizational structures

    The transition to modern management methods is inextricably linked with network companies, network organizational structures. Ahead is the era of network companies and networks of companies professing new management principles.

    By the beginning of the new century, the use of network principles for organizing companies is becoming the leading direction in management in Western countries. This is due to the following:

    Constant changes in the external environment and the need for companies to adapt to these changes;

    Constant complication of production and commercial activities of companies;

    Increasing the importance of the time factor (increasing the efficiency of actions requires a new approach to production and management methods);

    Expansion of the company's space (if it wants to survive, it must very quickly expand its market to national and then to global scale);

    Low efficiency of generally accepted forms of cooperation in solving complex problems of economic activity;

    Striving for autonomous forms of labor;

    The presence of interorganizational systems of information and communication.

    As we noted above, mankind has entered a new stage of its development - the “stage of building an information society”, and Information society can be characterized by the following features that create the necessary conditions for the emergence of network and virtual companies:

    Any person or group of persons can, anywhere and at any time, freely have access through automated communication systems to any information they need;

    Any person or group of persons can use modern information technology to solve the problems they face;

    Any person, group of persons or society as a whole has the necessary technical means, infrastructure and social base for the production and reproduction of the required information.

    Network systems reflect the links between elements of the internal and external environment of companies.

    The term " networking ” means the method of forming a network with its nodes and links in order to achieve goals in accordance with the needs and expectations of partners and business conditions.

    The network model is designed to simply change the world, it is equally applicable as a model of intra-organizational cooperation between potential resources, and between companies and groups of companies.

    While creating network companies for more flexible implementation of production programs, the enterprise is divided into economically and sometimes legally independent centers (economic units, departments, production segments, profit centers). Federal structures are replacing centralized ones.

    Networks from companies can be represented by two organizational models:

    A network forming around a large company . In this case, a large company, which is the core of the network, gathers smaller firms around itself, instructing them to perform certain types of activities. A large company dominates business operations as the main customer and the network becomes hierarchical. Small companies quickly become dependent on a more powerful partner.

    A network of companies of similar size. Most of the networked companies are legally independent, but economically they support each other's stability, which is very important for everyone.

    Certain types of activities during networkization can be transferred to other companies specializing, for example, in marketing research, providing raw materials and materials, compiling accounting reports, recruiting and improving their skills, after-sales service for products of one industry or group of companies. In general, a company can get rid of many activities and concentrate all resources on its priority areas of specialization, on its own unique processes. Areas that are unique to a company are areas that may contain a company's competitive advantage, most notably R&D and the manufacturing process.

    Consequently, the networking strategy is comparable to the methods of narrowing down one's own production activities, when the company ceases to deal with certain areas on its own and transfers them to external performers. Sometimes the production of products itself is entrusted to external performers, in this case we are dealing with the so-called shell companies.

    Advantages are significant enough. Let's list them:

    Adaptability of companies to changing conditions, quick response to changing market conditions;

    Concentration of the company's activities on priority areas of specialization, on unique processes;

    Significant reduction of costs, their rational structure and increase in income;

    Low level of employment, elimination of duplication of the use of skilled labor;

    Involvement of the best partners in joint activities within the network, exclusion of the use of second-rate performers.

    The attractiveness of network structures is explained by very high economic indicators, which in turn are due to two factors - the competence and efficiency of the organizational network.

    Network structures are an ideal school for increasing the competence of company employees. After all, the best performers are involved in solving certain problems. Such an elitist principle of cooperation inherent in the network company excludes the use of second-rate performers, although the latter work in the same company.

    The efficiency of the companies in question is guaranteed by a low level and rational cost structure. Networks eliminate the duplication of labor and capacity in different areas. Thus, high total costs for the production of final products can be avoided.

    Network companies, network structures are characterized by an optimal cost structure. At the same time, the costs of preparatory and final work are easily amenable to minimization. Cost reduction is also achieved by the fact that network structures are less burdened by the so-called political organizational units, which include the company's supervisory board, production council, conciliation groups, etc. Unlike ordinary companies, they are focused primarily on targeted activities and to a much lesser extent on solving political issues.