How To Determine The Organizational Structure Of Management

Table of contents:

How To Determine The Organizational Structure Of Management
How To Determine The Organizational Structure Of Management

Video: How To Determine The Organizational Structure Of Management

Video: How To Determine The Organizational Structure Of Management
Video: Types of Organizational Structure in management 2024, December
Anonim

Determining the organizational structure of an enterprise plays an important role in the creation of a new company. The correct construction of the links of the organization and the location of connections between them will allow it to quickly adapt to the market and effectively build its work in the future.

How to determine the organizational structure of management
How to determine the organizational structure of management

Instructions

Step 1

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

Step 2

The linear structure is characterized by a vertical hierarchy: top manager -> department head (line) -> performers. This type of structuring is typical for small firms where there are no additional functional units.

Step 3

The advantage of a linear structure is its simplicity and concreteness, however, it has many disadvantages: it requires high qualifications of managers and their heavy workload, so it can only be used in companies with simple technology and small production volumes.

Step 4

The need for a transition to a linear-staff management structure arises when the linear structure grows. Its distinctive feature is the emergence of a new subdivision, headquarters, the employees of which do not have direct management powers. They act as a consulting link that develops management decisions and transfers them to line managers.

Step 5

A more complex production structure implies a transition to a functional type of management. In this case, in addition to vertical, interlevel links appear. The enterprise is divided into elements (marketing, finance, production), the distribution of work is functional. The top manager is the general director, functional managers are the directors for production, sales, marketing, finance, etc.

Step 6

The advantage of the functional structure is to improve the quality of management, expand the powers of managers. However, there are also disadvantages: the actions of functional departments are poorly coordinated, and their leaders are not responsible for the final production result.

Step 7

The linear-functional type of management implies the addition of the linear structure with functional divisions, the directors of which become a level between the general director and line managers.

Step 8

The essence of the matrix type of management structure is the creation of temporary working groups within the enterprise. These groups are formed for each specific project, a team leader is appointed, who receives under his leadership the resources and workforce of several departments.

Step 9

The matrix structure allows for more flexible and quick implementation of projects, implementation of innovations, however, conflicts often arise in groups on the basis of double subordination, distribution of workload and the degree of responsibility for individual operations. The head of the group bears full responsibility.

Step 10

The divisional management structure is being created at very large enterprises. There are divisions, the so-called divisions, which are formed not according to functions, but according to the type of products or regions. In turn, functional divisions are created within these divisions, for example, for supply, production, sales, etc.

Step 11

The disadvantages of the divisional structure are expressed in the forced duplication of personnel, including management, within divisions. For example, in several divisions that produce different products, there are departments of marketing, development, sales, etc. However, such duplication allows the higher management to relieve the burden of solving everyday production problems.

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