Advantages of linear control. Typical organizational structures of enterprises

Linear structure is a management system with unity of command at all levels.

Peculiarities:

· Formed as a result of building a management apparatus only from mutually subordinate bodies in the form of a hierarchical ladder;

· At the head of each division is a manager, vested with full powers and exercising sole management of the employees subordinate to him, concentrating in his hands all management functions. The manager himself is directly subordinate to the top-level manager;

· In a linear structure, the division of the management system into component parts is carried out according to production characteristics, taking into account the degree of concentration of production, technological features, breadth of product range, etc.;

· With this structure, the principle of unity of command is observed to the greatest extent: one person concentrates in his hands the management of the entire set of operations, subordinates carry out the orders of only one manager. A higher management body does not have the right to give orders to any executors, bypassing their immediate supervisor;

· The structure is used by small and medium-sized firms engaged in simple production, in the absence of broad cooperative ties between enterprises.

· Unity and clarity of management;

· Coordination of actions of performers;

· A clear system of mutual connections between the manager and the subordinate;

· Reaction speed in response to direct instructions;

· Receipt by performers of interconnected orders and tasks provided with resources;

· Personal responsibility of the manager for the final results of the activities of his department.

Disadvantages of a linear structure:

· High demands on the manager, who must have extensive, versatile knowledge and experience in all management functions and areas of activity carried out by subordinates, which limits the manager’s ability to effectively manage;

· Overload of top-level managers, a huge amount of information, a flow of papers, multiple contacts with subordinates and managers;

· Tendency to red tape when resolving issues relating to several departments;

· Lack of links for planning and preparation of management decisions.

The classic diagram of the linear organization of the management structure is shown in Fig. 12.

Rice. 12. Diagram of the linear organizational structure of management.

Functional structure based on subordination to areas of management activity. In fact, a particular unit has several senior managers. For example, the head of a workshop with such a structure will have heads of the departments of supply, sales, planning, remuneration... But each of these managers has the right to influence only in his area of ​​activity. With a functional structure, divisions are allocated for specific responsibilities and tasks. If the size of the organization is significant, then the functional units are divided in turn into smaller structures, the so-called secondary units.

Peculiarities:

Each management body is specialized in performing individual functions at all levels of management;

Carrying out the instructions of each functional organ within its limits competencies mandatory for production departments;

Decisions on general issues are made collectively;

The functional specialization of the management apparatus significantly increases its efficiency, since instead of universal managers who must understand the performance of all functions, a staff of highly qualified specialists appears;

The structure is aimed at performing constantly recurring routine tasks that do not require prompt decision-making;

They are used in the management of organizations with mass or large-scale production, as well as in cost-type economic mechanisms, when production is least susceptible to scientific and technical progress.

Advantages:

· High competence of specialists responsible for the implementation of specific functions;

· Freeing line managers from solving many special issues and expanding their capabilities for operational production management;

· A basis is created for the use of experienced specialists in consultation work, and the need for general specialists is reduced.

Flaws:

· Difficulties in maintaining constant relationships between various functional services;

· Lengthy decision-making procedure;

· Lack of mutual understanding and unity of action between functional services;

· Reduced responsibility of performers for work as a result of the fact that each performer receives instructions from several managers;

· Duplication and inconsistency of instructions and orders received by employees, since each functional manager and specialized unit puts their own issues first.

The classic diagram of the functional organizational structure of management is shown in Fig. 13.

performers

Rice. 13. Diagram of the functional organizational structure of management.

Linear-functional management structure is the most common type of hierarchical structure. It is based on the principle of constructing and specializing the management process according to the functional subsystems of the organization (production, marketing, finances, personnel, etc.). For each of them, a vertical of power is created that permeates the entire organization from top to bottom.

Peculiarities:

· Ensures such a division of managerial labor in which linear management links are called upon to command, and functional links are called upon to advise, assist in the development of specific issues and prepare appropriate decisions, programs, plans;

· Heads of functional departments (marketing, finance, R&D, personnel) exercise influence on production departments formally. As a rule, they do not have the right to independently give them orders;

· The role of functional services depends on the scale of economic activity and the management structure of the company as a whole;

· Functional services carry out all technical preparation of production, prepare solutions to issues related to the management of the production process.

Advantages:

· Freeing line managers from resolving many issues related to financial planning, logistics, etc.;

· Building “manager-subordinate” relationships along the hierarchical ladder, in which each employee is subordinate to only one manager.

Flaws:

· Each link is interested in achieving its own narrow goal, and not the general goal of the company;

· Lack of close relationships and interaction at the horizontal level between production departments;

· Excessively developed vertical interaction system;

· Accumulation at the top level of authority to solve, along with strategic ones, a variety of operational tasks (as a consequence of vertical connections “manager-subordinate”).

The diagram of the linear-functional organizational structure of the organization is shown in Fig. 14.

	LEGAL SERVICE				SOCIOLOGICAL RESEARCH SECTOR

SERVICES

DIVISIONS

Rice. 14. Scheme of linear-functional organizational structure.

Divisional structure is the division of an organization into elements and blocks by type of goods or services, customer groups or geographic regions. The enterprise actually operates as a combination of several sub-enterprises. Each of them carries out the work process, relying on its own resources and its own staff.

Peculiarities:

· The need to use a divisional structure arose in connection with a sharp increase in the size of enterprises, the diversification of their activities, and the complication of technological processes;

· The key figures in the management of organizations with this structure are not the heads of functional departments, but managers heading production departments;

· The structuring of an organization into departments is carried out, as a rule, according to one of the criteria: by manufactured products (product specialization), by customer orientation, by regions served;

· Heads of secondary functional services report to the manager of the production unit;

· Assistants to the head of the production department control the activities of functional services at all plants of the department, coordinating their activities horizontally.

Advantages:

· Closer connection between production and consumers, accelerated response to changes in the external environment;

· Improved coordination of work in departments due to subordination to one person;

· The emergence of divisions of competitive advantages of small firms.

Flaws:

· Growth of hierarchy, vertical management;

· Duplication of management functions at different levels leads to an increase in the costs of maintaining the management apparatus;

· Duplication of work for different departments.

The classic diagram of the divisional structure is shown in Fig. 15. The global divisional structure is shown in Fig. 16 .

A, B, C, D - product, region, consumer group

Rice. 15. Classic divisional structure diagram.

a) global product structure: A1, B1, B1 - product

A1, B2, B2 - region

b) global regional structure: A1, B1, B1 - region

A2, B2, B2 - product

Rice. 16. Global divisional structure.

Distinctive features of a linear-functional management structure from a divisional one:

Linear staff structure. The concept of headquarters was first used in the army Alexander the Great. The main idea was to divide officers into two groups: those planning the battle and those managing the soldiers. The first group of officers were assistants to senior officers. The second group consisted of combat officers. The line-staff structure is a linear structure supplemented by specific units for preparing management decisions. These units do not have lower levels of management, they do not make decisions. Their task is to analyze the options and consequences of decisions for the specific manager to whom this “headquarters” unit is attached.

Examples of such departments include a computing bureau, a legal service, and a research group. The staff apparatus is classified into three groups: advisory, service and personal. Advisory apparatus consists of professionals in areas of activity (law, technology, economics...). Service device ensures the activities of the manager in auxiliary areas. This could be a public relations support group, analyzing correspondence flows, checking documentation... Personal device- This is a type of service device. It includes a secretary, assistant, assistant... The personal apparatus usually does not have formal powers, but has great power. By filtering information, employees of the personal apparatus can control access to the manager.

Organization by departments implements the basic principles of a unified business policy quite well and has a greater ability to adapt than a linear-functional management structure. However, compartments sometimes become large and have the disadvantages of overgrown structures.

Structure of a single strategic business provides for the concentration in production structures of only linear (production) management units necessary to ensure current production activities. All supporting functions are concentrated in general divisions at the level of management structures under the general director. Such a structure allows you to organize management with a focus on common goals of activity. However, its implementation is most convenient for large-scale mass production based on a continuous production process.

Matrix structure is an attempt to use the advantages of the two previous options for management structures (divisional and single strategic business). For each management unit, two managers are introduced. One according to the production profile, the second - according to the functional profile. Each production facility has a full set of management units, but each of them is simultaneously included in a single corresponding management department. It turns out, for example, that supplies are provided by employees of a single department, the head of which is subordinate to the general director. A uniform methodological orientation is observed for all department employees.

However, the department consists of groups of employees, each of which is assigned to one of the production facilities and at the same time reports to its head, subordinate to the general director. Other management functions are organized in a similar way. The advantages of a matrix structure are flexible use of limited resources, efficiency in adapting to external conditions, high level of qualifications of managers. The main disadvantage of the matrix structure- its complexity. Problems arise due to the imposition of vertical and horizontal powers, and the emergence of tendencies towards anarchy among ordinary employees. Dual-report managers may receive conflicting instructions and must find compromise solutions. The effectiveness of the matrix management structure is determined by the clarity of the goals set and their understanding at all levels.

Program-target structure- this is a temporary structure of subordination of departments and individual employees, focused on solving a specific problem. This structure regulates the timing of implementation and the composition of activities, set goals, and resource support. Program-targeted management is used by an enterprise when situations arise that have no analogues in the past and fall outside the traditional mode of operation. These could be emergency situations, development of new types of products, overcoming a crisis, or entering new markets. Program-targeted control is implemented within the framework of the main control system. At the same time, a special set of activities is identified that make up a single target complex, and a special temporary subordination of departments and individual employees is built.

When designing organizational management structures, it is necessary to take into account that any structure is based on the pillars shown in Fig. 16. In organization theory, there are the following stages in the design of organizational structures (Fig. 17). There are requirements for the organizational structure (Fig. 18) and principles for creating an effective organizational management structure (Fig. 19).

Rice. 16. Pillars of an effective organizational structure.

Rice. 17. Stages of designing organizational structures.

Rice. 18. Requirements for organizational structure.

Rice. 19. Principles for creating an effective organizational management structure.

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

Fig.1. Linear organizational structure of enterprise management

Advantages of a linear management structure:

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

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

· clearly expressed responsibility;

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

· consistency of actions of performers;

· efficiency in decision making;

· simplicity of organizational forms and clarity of relationships;

· minimum production costs and minimum cost of products;

Disadvantages of a linear structure:

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

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

· low flexibility and adaptability to changing situations;

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

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

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

· overload of top-level managers;

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

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

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

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

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

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

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

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

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

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

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

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

1. Pros:

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

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

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

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

Rice. 8.3. Divisional structure diagram

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

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

Advantages of a divisional structure:

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

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

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

· closer connection between production and consumers.

Disadvantages of the divisional structure:

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

· disunity of headquarters structures of departments from company headquarters;

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

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

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

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

Matrix (program-target) management structure

This structure is a network structure built on the principle of double subordination of performers: on the one hand, to the immediate head of the functional service, which provides personnel and technical assistance to the project manager, on the other, to the manager of the project or target program, who is endowed with the necessary powers 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 immediate heads of divisions, departments, and services remains. For activities that have a clearly defined beginning and end, projects are formed; for ongoing activities, targeted programs are formed. In an organization, both projects and targeted programs can coexist.

Advantages of a matrix structure:

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

· more efficient ongoing 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 groups or program committees contributes to the development of decision-making skills, management culture, and professional skills among employees;

· improving control over individual tasks of a project or target program;

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

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

Disadvantages of matrix structures:

· the difficulty of establishing clear responsibility for work on the instructions of the unit and on the instructions of the project or program (a consequence of double subordination);

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

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

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

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

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

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 necessary - the creation of a manager's headquarters (in the simplest case, an assistant) for more effective management of the enterprise (line-staff organizational structure). In principle, it is possible even at one level of hierarchy.

In a line-staff organizational structure, the headquarters works only with the leader, and does not work with the divisions. When the enterprise expands, its functions expand, and the issues resolved by the manager together with the headquarters increase, the manager’s overload begins again. The horizontal connection between the manager and the staff becomes the bottleneck of the enterprise, and the economic efficiency of the enterprise begins to decline.

Advantages of the linear staff structure:

· deeper elaboration of strategic issues than in the linear one;

· some relief for senior managers;

· the ability to attract external consultants and experts;

· When assigning functional leadership rights to headquarters units, such a structure is a good first step towards more effective organic management structures.

Disadvantages of the line-staff structure:

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

· tendency towards excessive centralization of management;

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

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

The solution is to create functional units that will work not only with the manager, but directly with all structural units, so we move to a linear-functional organizational structure.

Linear - functional structure .

As the size of an enterprise with a linear-staff organizational structure increases, the number of issues that arise that require solutions increases, the headquarters grows, and the Manager’s workload again becomes excessive.

The solution is to create functional units. Emerging issues are considered not at the level of the Manager, but at the level of structural units. At the same time, structural divisions, together with functional ones, consider emerging issues and prepare draft decisions, without first contacting the Head. At the same time, he receives not questions, but only answers—prepared draft decisions.

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

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

Functional services can be organized according to project criteria and other criteria, thereby resulting in 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 departments may no longer cope with the increasing volume of work, with the increasing flow of draft solutions, the economic efficiency of the enterprise will begin to decrease, and a transition to functional or, in a broader sense, matrix organizational structures will be required.

The main area of ​​application of the linear-functional organizational structure is small and medium-sized wide-profile enterprises

Product organizational structure.

Organizing divisions along product lines (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 organization structure.

When using a divisional-product management structure, departments are created for the main products. Management of the production and marketing of any product (service) is transferred to one person who is responsible for this type of product. The heads of support 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 a product (group, family of products), knowing well its market opportunities. Disadvantages: high possibility of conflicts with unclear division 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 needs.

Project management structure

The main principle of constructing 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 beginning and ending. 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 disintegrates, its components, including employees, move to a new project or are fired (if they worked on a contract basis). The form of 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 structure in its organization. Here, project teams form their own temporary units, created for the duration of the project and headed 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. Also, functional departments play the role of a pool of resources (for example, specialists) that are dynamically redistributed between projects. In a 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 actually represents a branch of the company, while the “laws” by which an employee operates within the project are completely determined by the project management. This structure is effective in large, significant projects for the company, usually lasting more than two years.

Benefits of a project management structure:

· high flexibility;

· reduction in the number of management personnel compared to hierarchical structures.

Disadvantages of the project management structure:

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

· fragmentation of resources between projects;

· complexity of 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 businesses with a small number of simultaneous projects. The possibilities of implementing the principles of modern quality philosophy are determined by the form of project management.

Business Unit Management (BUM)

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

An example of a network organizational structure is the technology and organizational and financial management structure of Business Unit Management (BUM). It is based on the introduction of full internal cost accounting - intra-company 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 manager (or possible functional units) in this figure are not directive instructions, 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 division (business unit) is an independent structural unit that is fully accountable. Each business unit has a defined area of ​​activity and some “rules of the game”, but otherwise it is independent. It buys the results of other business units and sells the results of its work to others, and not only in the internal “market” of the enterprise. If the conditions of the foreign market are more favorable to it, it can refuse the services of other business units and work in the foreign 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, or be disbanded. The motivation for the financial result of a business unit is very strong. But this motivation is mainly for immediate results; you even have to look for ways (in the “rules of the game”) to correct this imbalance.
Strong financial motivation of business units, for its part, increases the economic efficiency of the enterprise. But in this case, the controllability of the enterprise is practically lost - business units are independent. The enterprise actually ceases to operate as a single company with its own mission, strategy, and plans to achieve strategic results. These issues 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, which is focused on the mission, vision and strategic goals of the enterprise.

Innovation-production management structure.

Innovation - production management structure - management structure that provides for the separation of:

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

· - daily operational management of established production and sales of mastered products.

Innovative production enterprises (IPE) 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, and also including transport and storage systems created for the purpose of developing , production and sale of science-intensive, high-tech products.

The innovation-production complex is a set of organizationally and financially interconnected innovative organizations and production enterprises, as well as subjects of the infrastructure of innovation activities, representing 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 market needs 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, and 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 make it possible to link participants in the innovation-production complex, determine their powers, responsibilities, nature of activities, and functions performed.

Organizational relationships are determined through direct and feedback connections of the management system of the innovation-production complex, its structure, the 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-production complex have a number of other connections - informational, marketing, resource, etc.

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

Participants of the innovation-production complex are:

1) Innovative organizations are organizations and enterprises whose main goal is the development and implementation of 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) Subjects of innovation infrastructure are a set of organizations and structures that support 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.

Aspect4. The unity of the economic system is manifested in the fact that the innovation-production complex has systemic characteristics and can be considered as a unified economic system for managing the innovation-production activities of its subsystems - enterprises, innovation organizations, entities supporting innovation activities.

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 combination of any parts into a whole.

Aspect6. The resources of the innovation-production complex must 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 identifying a clear hierarchy of goals.

The essence of the innovation-production complex is the spatiotemporal unification of many elements of innovation and production activity, 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-production effect and a qualitative change in economic activity.

To characterize the innovation-production complex, the author has identified a number of approaches to describing its content:

1) this is a set of interconnected 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 object of management, which can be considered at various levels of the hierarchy of the complex;

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

4) this is a complex of interconnected business processes of innovation and production activities that use available resources and conditions to achieve 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, and regulatory materials;

6) this is a flexible mechanism for the interaction of many elements of innovation and production activity, working continuously, clearly and purposefully and suppressing emerging risks;

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

The essence of an effectively operating innovation-production complex is to combine its production and innovation elements, coordinate their activities, maintain innovation infrastructure and determine ways to continuously increase the efficiency of innovation-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. Based on the construction features, one can also distinguish a ring structure, a “wheel”, a star structure, a multi-connected structure, a honeycomb structure, and a mixed structure.

Companies of the future.

Network organizations. Network organizational structures

The transition to modern management methods is inextricably linked with network companies and 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 a 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);

Expanding the company’s space (if it wants to survive, it needs to very quickly expand its market to a national and then to a global scale);

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

The desire for autonomous forms of labor;

Availability of inter-organizational information and communication systems.

As we noted above, humanity 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 people knows how to 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 connections between elements of the internal and external environment of companies.

The term “ networking ” means a method of forming a network with its nodes and connections 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 a 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 represents the core of the network, gathers smaller firms around itself, entrusting them with 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 similar in scale. Most of the companies united in the network are legally independent, but in economic terms they support each other’s sustainability, which is very important for everyone.

Certain types of activities during networking can be transferred to other companies specializing, for example, in marketing research, provision of raw materials and supplies, preparation of accounting reports, personnel selection and professional development, after-sales service for products of one industry or group of companies. In general, a company can free itself from many types of activities and concentrate all resources on its priority areas of specialization, on its own unique processes. Unique to a company are those areas that may contain the competitive advantages of a given company, and first of all, these include scientific and technical developments and the production process.

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

Advantages are quite significant. Let's list them:

Adaptability of companies to changing conditions, quick response to changing 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, eliminating duplication of skilled labor;

Attracting the best partners to joint activities within the network, eliminating the use of second-rate performers.

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

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

The efficiency of the companies under consideration is guaranteed by a low level and rational cost structure. Networks eliminate duplication of labor and capacity across different sites. Thus, it is possible to avoid high total costs for the production of final products.

Network companies and network structures have an optimal cost structure. At the same time, the costs of preparatory and final work can be easily minimized. Cost reduction is also achieved by the fact that network structures are less burdened with 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 target activities and to a much lesser extent on resolving political issues.

COURSE WORK

Discipline: "Organization Theory"
on the topic of:
"Linear management structure"

Completed by: student
FU, 2 years, group
UP 3-09
Kachanova Yulia

Scientific director
Petrova Elena Vyacheslavovna

Cheboksary 2011

content
Introduction………………………………………………………… ………….…..3
Chapter 1 Theoretical foundations of the linear management structure
1.1 Concept and essence of linear structure……………………………5
1.2 Features, advantages and disadvantages of the linear structure…………9
Chapter 2 Characteristics of the enterprise Makhaon LLC
2.1 Characteristics of the enterprise’s activities…………………………….11
2.2 Characteristics of the personnel of Makhaon LLC………………………… ………..14
2.3 Financial characteristics of the enterprise……………………………...…17
2.4 Analysis of enterprise performance indicators…………………….……19
2.5 Enterprise management structure…………………………………...… 22
Chapter 3. Main directions for improving the management structure at the Machaon LLC enterprise
3.1 Identification of shortcomings at the enterprise “Makhaon” LLC…………….…27
3.2 Development of a new organizational management structure…………….…30
Conclusion…………………………………………………………………….37
Applications……………………………………………………………..…….39
List of references………………………………………………………..... ..43

Introduction
The organizational structure is a logically constructed relationship between management levels and functional units. The management structure of an organization is understood as an ordered set of interconnected elements that are in stable relationships with each other, ensuring their development and functioning as a single whole.
Within the framework of the structure, a management process takes place, among the participants of which management functions and tasks are distributed. From this position, the organizational structure is a form of separation and cooperation of management activities, within which the management process takes place, aimed at achieving the goals of the organization. Hence, the management structure includes all goals distributed among various units, the connections between which ensure coordination for their implementation. The management structure has a huge impact on all aspects of management, as it is associated with the key concepts of management - goals, functions, process, functioning mechanism, powers of people. Therefore, managers at all levels pay great attention to the principles and methods of forming structures, choosing the type or combinations of types of structures, studying trends in their construction, and assessing their compliance with the goals and objectives being solved.
The decision on the organizational structure is made at the institutional level, and the process itself is called departmentalization.
The elements of the management structure are:
1. Link - position or division.
2. Connections. The management structure is characterized by the presence of connections between its elements. Horizontal connections are of a coordination nature and are, as a rule, single-level. Vertical connections - connections of subordination, arise when there are several levels of management. Vertical connections can be linear and functional. Linear connections mean subordination to line managers, i.e. on all management issues. Functional ones occur when subordination to a functional manager for a certain group of problems.
3. Levels of management. The variety of functional connections and possible ways of their distribution between departments and employees determines the variety of possible types of organizational structures for production management. All these types come down mainly to four types of organizational structures: linear, functional, divisional and adaptive.
The purpose of this course work is to examine the management structure of the organization, as well as to identify shortcomings and ways to improve it. To achieve this goal, the following tasks were set:
- study the theoretical aspects of the linear organizational structure.
- highlight the features of this structure.
- describe the enterprise
-develop measures to improve the management structure at the enterprise "Makhaon" LLC

Chapter 1. Theoretical foundations of the linear management structure

The concept and essence of linear structure

Fig.1 Scheme "Linear organizational management structure"

With linear management, each link and each subordinate has one manager, through whom all management commands pass through one single channel. In this case, management levels are responsible for the results of all activities of managed objects. We are talking about the object-by-object allocation of managers, each of whom performs all types of work, develops and makes decisions related to the management of a given 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 manager of a higher level above him, a kind of hierarchy of managers of this particular organization is formed. 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 without bypassing their immediate superior. 2

1.2 Features, advantages and disadvantages of linear structure
Features of linear management structures are:

A clear system of mutual connections between functions and departments;
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;
Lack of links involved in strategic planning; in the work of managers at almost all levels, operational problems “turnover” dominate over strategic ones;
A large number of “management levels” between workers producing products and the decision maker;
Clearly expressed responsibility;
Quick response of executive departments to direct instructions from superiors;
Tendency to red tape and shifting responsibility when solving problems that require the participation of several departments;
The criteria for the effectiveness and quality of work of departments and the organization as a whole are different;
Overload of top-level managers;
Increased dependence of the organization's performance on the qualifications, personal and business qualities of senior managers;

highly profitable production of confectionery and

bakery products,

leader in the production of cake products,
reliable partner,
a highly qualified team of like-minded people.

2.3 Financial characteristics of the enterprise
Profit is the income of an enterprise expressed in monetary form on invested capital, characterizing its remuneration for carrying out business activities, representing the difference between total income and total costs in the process of carrying out this activity. Profit is not only a generalized cost indicator characterizing the results of the financial and economic activities of an enterprise, but also a real source of cash savings. It creates certain guarantees for the further existence of the enterprise, since it is the accumulation of profits that helps to overcome the consequences of the risk associated with the sale of goods on the market. 3
The structure of income and results (profit) of an enterprise can be analyzed based on data from the profit and loss statement. The purpose of the analysis is to determine the share of individual components of balance sheet profit in its occurrence. For a comprehensive assessment of the financial results of an enterprise, there is a system of indicators given in Table 2.
According to Table 13, it can be seen that balance sheet profit in 2005 amounted to 58,480 thousand rubles, which is 25,277 thousand rubles. more than book profit in 2004

2.4Analysis of enterprise performance indicators

2.5 Management structure at the enterprise "Makhaon" LLC
When analyzing and designing organizations, one should consider the relationships of their elements, structure, as well as the mechanism of interaction of these elements within the framework of certain goals and a given structure of the organization. The organizational structure and the organizational mechanism in all the diversity of their manifestations form organizational forms of management.
Next, we will consider the organization of management at the enterprise "Makhaon" LLC.
The establishment of a rational production structure of the enterprise is of great importance for economic management. The organizational structure of the production of Machaon LLC is presented in Fig. 2.
The organizational structure of enterprise management reflects the composition and subordination of linear and functional management units; at Machaon LLC, the management structure has a linear-functional form (Fig. 3). With this type of organizational structure of an enterprise (linear-functional), the line manager, who reports directly to the director, is assisted in developing specific issues and preparing appropriate decisions, programs and plans by a special management apparatus, consisting of functional divisions (departments, groups). Such units carry out their decisions either through the top manager, or directly convey them to specialized services or individual performers at a lower level. Functional departments do not have the right to independently give orders to production departments.
The management of the enterprise is carried out by the director on the basis of unity of command. The management structure has a linear-functional form. All subordinate managers are subordinate to the director. A single vertical leadership line and a direct path of active influence on subordinates have been created. The advantage of this control structure is simplicity, reliability and cost-effectiveness. The manager in this case must cover all aspects of the enterprise's activities.
Functional divisions carry out all technical preparation of production, prepare options for resolving issues related to the management of production processes, relieve line managers from planning financial calculations, logistics of production and other issues.

LLC "Makhaon"
Bakery shop

Lamb shop
Gingerbread shop
Sugar shop
Cake shop
Confectionary shop
Mechanized bakery No. 1
Mechanized bakery No. 2
Mechanized bakery No. 3

Figure 2 Organizational structure of production of Machaon LLC

General Director of LLC "Makhaon"
Chief Engineer
Head economist
Deputy Director for HR and Sales
etc.................

The linear management structure is the simplest. Its essence lies in the fact that control influences on an object can only be exerted by one person - the manager, who receives official information only from persons directly subordinate to him. He makes decisions on all issues related to the part of the facility he manages and is responsible. 4, p.257. In other words, all functions of management and subordination are concentrated in the head, a vertical line of control is created and a direct path of influence on subordinates 2, 54. This management structure is shown in Figure 1.

Rice. 1 Linear management structure

This type of organizational management structure is used in the context of the functioning of small enterprises with urgent production in the absence of extensive cooperative connections with suppliers, consumers, etc. This structure is used in the management system of production sites, individual small workshops, companies of the same or simple technology.

The advantage of a linear structure is ease of use. All responsibilities and powers are clearly distributed, in connection with which all the necessary conditions are created for the operational decision-making process, to maintain the necessary discipline in the team 4, P.258. In addition, there is an increase in the responsibility of the manager for the results of the activities of the unit he heads, the executors receive interconnected orders and tasks, provided with resources, and personal responsibility for the final results of the activities of their unit/

Among the shortcomings are rigidity, inflexibility, and inability to further growth and development of the enterprise. The linear structure is focused on a large amount of information transmitted from one management level to another, limiting initiative among employees of lower management levels 4, P.258.

The structure places very high demands on the manager, who must have extensive, versatile knowledge and experience in all management functions and areas of activity carried out by subordinate employees, which limits the scale of the department being headed and the manager’s ability to manage it more effectively.

1.4 Functional management structure

The functional structure has developed as an inevitable result of the increasing complexity of the management process. The peculiarity of the functional structure is that while maintaining unity of command for individual management functions, special divisions are formed, the development of which has knowledge and skills to work in this area of ​​management (Fig. 2).

Rice. 2 Functional management structure

Creating a functional structure comes down to grouping personnel according to the broad tasks they perform. The specific characteristics and features of the activities of a particular division correspond to the most important areas of activity of the entire enterprise.

Functional structuring is the most widespread form of organizing activities and takes place in almost all enterprises at one level or another of the organizational structure. It is the process of dividing an organization into separate elements, each of which has its own clearly defined, specific task and responsibilities. Creating a functional structure comes down to grouping personnel according to the broad tasks they perform (production, marketing, finance, etc.). The specific characteristics and features of the activities of a particular unit correspond to the most important areas of activity of the entire organization.

In cases where the functional structure is only partially used, one of the functions (for example, finance) is either above or at the same level as divisions structured by product, customer or territory.

The importance of the sales, production and financial functions of an enterprise is so widely recognized that they are often taken as the basis of the entire structure of the organization. They are located at a level above which only the head of the enterprise is located. This provision is true regardless of the basis on which the activities within the enterprise are grouped and how important the functions of a particular unit are.

The chain of command comes from the president (CEO) and flows from top to bottom.

Management of sales organization, financial issues, data processing and other functions that are specific to a particular enterprise is carried out by vice presidents. Managers report to them. And so on, down the hierarchical ladder, tasks are subject to further functional division in accordance with processes.

Functional organization aims to stimulate quality and creativity, as well as to strive for economies of scale in the production of goods or services.

However, maintaining interaction between different functions is a complex and often problematic task. The implementation of different functions involves different deadlines, goals and principles, which makes coordination and scheduling of activities difficult. In addition, functional orientation is associated with a preference for standard tasks, the promotion of narrowly limited perspectives, and reporting on performance.

The functional structure is not suitable for organizations with a wide range of products, operating in an environment with rapidly changing consumer and technological needs, as well as for organizations operating on a broad international scale, simultaneously in several markets in countries with different legislation. The logic of this form is centrally coordinated specialization. It is difficult to trace the contribution of each resource element along the value chain to the final result and the overall profitability of the organization. In fact, the current trend toward disintegration (ie, buying rather than producing components, etc.) reflects the understanding of many firms that the necessary coordination of costs and resources is reflected in performance. A functional organization can fail due to misapplication because the logic of the organization is centralized control, which does not easily adapt to product diversification.

In its pure form, the functional structure is practically not used. It is used in close, organic combination with a linear structure operating along the top-down management hierarchy and based on the strict subordination of the lower management level to the higher one. With this structure, the performance of highly specialized functions is intertwined with a system of subordination and responsibility for the direct implementation of tasks for the design, production of products and their delivery to consumers.

The main advantages of the structure include: high competence of specialists responsible for the implementation of specific functions and expansion of the capabilities of line managers in the operational management of production as a result of their release from preparing information on issues of functional activity 2, P.56.

At the same time, the specialization of functional departments is often an obstacle to the successful operation of an enterprise, since it complicates the coordination of management influences. Functional departments may be more interested in achieving the goals and objectives of their departments than the overall goals of the entire organization, which increases conflict between departments. In addition, in a large enterprise, the chain of commands from the manager to the performer becomes too long.

Disadvantages also include:

difficulties in maintaining constant relationships between various functional services;

lengthy decision-making procedure and hierarchy in the structure of relationships;

reduction in the responsibility of performers for work as a result of depersonalization in the performance of their duties, because each performer receives instructions from several managers;

duplication and inconsistency of instructions and orders received by employees and violation of the principles of unity of command and unity of management.

With the increase in size and the development of concentration of production, it was necessary to find more acceptable forms of management that corresponded to the nature of the new requirements of production. As a result, combined structures were created that combine the advantages of linear and functional structures. The simplest of them are linear-functional and linear-staff structures.

Organizations that carry out such processes as: determining the timing, volume and sequence of work, division of labor and resource provision, need to implement stable relationships between the elements of the management system. For this purpose, an organizational management structure is being developed.

Organizational structure is divided into two types: hierarchical and organic.

A hierarchical structure implies a clearly defined hierarchy, management comes from one center, a strict division of employee functions, and a clear definition of the rights and responsibilities of employees.

Let's take a closer look at the types of hierarchical structures:

1. Linear management structure

The linear structure is suitable for small organizations and for organizations operating in a stable external environment.

To eliminate the weaknesses of the structure it is necessary:

Determine the areas of competence of subordinate managers and delegate appropriate powers to them;

To relieve line managers, introduce a staff unit - an assistant, who will be assigned some of the responsibilities;

To eliminate the problem of shifting responsibility, it is necessary to establish horizontal communication between line managers.

This type of structure is used, as a rule, in small organizations in the initial period of their formation.

2. Functional management structure

The functional structure is most often used for large volumes of specialized work in an enterprise.

How to eliminate structure deficiencies:

If the principle of unity of command is violated, as a rule, the responsibility of the performers decreases. This problem must be solved by introducing motivation and budgeting systems;

It is necessary to clearly define the areas of competence of functional managers, provide the right to make independent decisions within their competencies, as well as clear planning of activities.

Linear and functional structures in their pure form are not used by any large organization in Russia or in the world.

3. Linear-functional structure

The linear-functional structure is suitable for medium and large companies. This structure helps improve the quality of horizontal communications.

This structure is effective where:

Management tasks and functions rarely change;

Mass or large-scale production occurs with a limited range;

Manufacturing is the least susceptible to the progress of science and technology;

External conditions are stable.

This structure is usually used by banks, industrial and state enterprises. It is also effective together with other structures.

To overcome the weaknesses of the linear-functional structureit is necessary to clearly define powers and responsibilities between line and functional managers.

Linear-functional system using the example of the bank OJSC AK BARS:

Source : OJSC "Ak Bars" Bank, akbars.ru

In modern conditions, a linear-functional structure, as a rule, is used mainly by small and medium-sized organizations and very rarely in transnational companies. For many large companies, the divisional approach has become relevant.

4. Divisional management system

The divisional structure is suitable for organizations that have diversified production or different areas of activity.

This structure was first used by the company "General Motors." The need to implement such a structure was caused by a sharp increase in the size of the company, the complication of technological processes, as well as the diversification of activities. In a rapidly changing environment, the linear-functional structure made it impossible to manage from a single center.

To smooth out the shortcomings of this structure, a clear delineation of functions for each department of the organization is necessary.

Divisional system using the example of the oil company OJSC Rosneft:

Source : OJSC NK Rosneft, rosneft.ru

Sometimes environmental conditions change so rapidly that the process of developing and making decisions in hierarchical structures slows down. For such a case, when an organization is no longer able to effectively interact with the environment, adhocratic (organic) structures have been developed.

In the second part of the article we will look at organic organizational structures.

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