Divisional structure of enterprise management. divisional organization. Divisional management structure, its features, advantages and disadvantages
Lecture: Organization as an object of management
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Purpose of the lecture: get acquainted with the basic concepts in the field of organization, present important areas of the typical structure of the organization and highlight the elements of the internal and external organizational environment. Organization- the process of organizing something, i.e. preparation for the onset of an event or phenomenon. Conscious influence on someone or something. Organization- subject ( entity) or government agency. Organization- an institution of society (actually existing in society, but not officially registered structure). Organization- the process of streamlining something, improving the structure and rules of functioning. Any organization is created to meet certain needs, both tangible and intangible. In management, the main focus is on the organization in terms of creating wealth. There are three main principles of organization: General principles. private principles. situational principles. The general principles of organization represent the generally accepted basis for the process. preparatory work something. Among the general principles are: structural principles process principles end result principles principle of competition Private principles are determined by the narrowness and rarity of their use in the management process and the practice of following them is determined by the directions of the company's activities. Private principles include: principles in various subsystems of society; principles in various activities. Situational principles are determined by the narrowness and uniqueness of their application in the activities of the organization and the likelihood of their reproduction is minimal. There are several types of organizations in management. A legal entity is an organization that has separate property in ownership, economic management or operational management and is liable for its obligations with this property, can acquire and exercise property and personal non-property rights on its own behalf, bear obligations, be a plaintiff and defendant in court. ( Civil Code Russian Federation). Business partnerships and companies (full and limited partnerships; OJSC, CJSC, ALC). production cooperatives. State unitary and municipal enterprises. Non-profit organizations (foundations, institutions, associations). We are interested in organizations whose goal is a commercial result, so the structure model organization can be represented in terms of the following components ( figure 5.1): Rice. 5.1. Structure of a typical organization An organization has the following characteristics:
In management, the organization is usually considered from the position of the external and internal organizational environment. External environment represents a sphere of influence that determines the direction of the company's development. Within the framework of the external environment, one can distinguish the near and the far. The inner circle is represented by suppliers, residents of the districts, owners, competitors, consumers, trade unions, financial institutions, suppliers, i.e. those objects on which the manager can exert some influence. The far environment is represented by the determining factors of the functioning of the organization in general. Among the factors are: religion, culture, geographical and climatic impact, political situation, legislation, demography, etc. The manager cannot directly influence such factors. Internal organizational environment represents a direct object of management by the manager. It includes the goals of the organization, its structure, tasks, technologies and personnel. In the structure of the organization, it is customary to distinguish the following levels of management: Institutional level - the level of the highest level of management. This is where strategic decisions are made. Managerial level - the level of management of the middle management level, at which operational decisions are made and orders of the highest management level are executed. The technical level is the level of low-level management at which performing work is carried out. Brief summary It is determined that the term organization is multifaceted and is understood as a firm, training, process, institution, etc. The structure of a typical organization is presented, which includes personnel, finance, production, sales, and supply. The levels of the organizational environment are also considered: internal and external. The levels of organization management (institutional, managerial, technical) are singled out. Give a descriptive description of the term organization. Highlight the main directions of interpretation of the term organization. Present the main elements of the typical structure of any organization. Describe the degree of influence of elements of the external organizational environment Determine what is the essence of the influence of the internal organizational environment on the activities of the organization |
Lecture: Organizational structures management
Purpose of the lecture: present the main structures of management of organizations, highlight their positive and negative sides.
Under the organizational structure of management is understood the activity of the subject of management. It is individual and depends on the characteristics of the economic activity of the organization.
The organizational structure is a set of management links located in strict subordination and providing the relationship between the managing and managed subsystems.
In the management structure of the organization, elements such as:
links (departments);
management levels.
In the theory and practice of management, two large blocks of organizational structures have developed:
Bureaucratic organizational structures:
Linear.
Linear headquarters.
Functional.
Divisional.
Organic (adaptive) organizational structures:
Matrix.
Linear structure It is characterized by the fact that at the head of each structural unit there is one leader, endowed with all powers and exercising sole leadership of subordinate employees and concentrating all management functions in his hands.
At linear control each link and each subordinate has one leader through whom all management decisions pass through one channel. In this case, management links are responsible for the results of all activities of managed objects.
Since in a 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, a kind of hierarchy of leaders of a particular organization is formed.
The linear control structure looks like this (figure):
Rice. Linear control structure
Advantages of a linear management structure:
A clear system of mutual relations between departments.
A clear system of unity of command, effective use of the central administrative apparatus.
Clear responsibility.
Quick response of performers to direct instructions from higher authorities.
Efficiency in decision-making at one level of management.
Simplicity organizational forms and clarity of relationship.
Minimum production costs.
The disadvantages of a linear control structure are:
A lot of time for the implementation of management decisions.
Small initiative at all levels.
Poor career opportunities for managers.
Little flexibility and adaptability in relation to external environment.
A tendency to red tape and shifting problems when solving issues that require the participation of several departments.
The criteria for the efficiency and quality of the work of departments and the organization as a whole are different.
The tendency to formalize performance appraisal creates an atmosphere of fear and mistrust.
Increased dependence of work results on qualifications, business qualities managers.
Functional management structure characterized by the fact that 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 of the management structure is that the performance of individual functions on specific issues is entrusted to a group of specialists focused on the implementation certain types works.
In an organization, as a rule, specialists of the same profile are combined into structural units (departments), for example, a marketing department, a planning department, accounting, logistics, etc. Thus, the overall task of managing the organization is divided, starting from the middle level, according to functional criteria.
Functional and line management exist together, which creates a double subordination of performers.
The functional structure of management is shown in the figure:
Rice. Functional management structure.
Benefits of a functional management structure:
Efficient management due to the high specialization of management personnel.
Good control over the implementation of strategic decisions.
Possibility career development and development.
No duplication of linear and functional relationships.
Decreased information transit time.
Less management workload.
Disadvantages of a functional control system:
Difficulties in coordinating the activities of various departments.
Lengthy decision making process.
Loss of mutual understanding in actions between employees of functional services.
A high degree of interest in the implementation of the goals of functional units to the detriment of the overall goals of the organization.
Reducing responsibility due to lack of unity of command.
Linear - headquarters organizational structure is a linear functional structure management, supplemented by a headquarters body.
Staff structures are created in the following cases:
elimination of consequences or prevention natural Disasters, accidents, disasters;
development of new products, new technology, not traditional for this enterprise;
solving a sudden unusual problem, for example, related to the aggressive behavior of competitors in the market and the need to develop a response.
The headquarters unit can be both temporary and permanent in nature and perform a consulting role in the formulation and implementation of a specific problem or task.
Linear - headquarters organizational structure is as follows (figure):
Rice. Linear-staff organizational structure.
The benefits of this governance structure include:
Detailed study of strategic and tactical issues.
Unloading (partial) senior management in the analysis of information and the development of proposals.
Opportunity to involve external experts and consultants.
Unloading functional units.
The disadvantages of line-staff management are:
Insufficiently clear division of responsibility, tk. external consultants are not responsible for the result of implementation of decisions.
Tendencies towards excessive centralization of management.
Other disadvantages inherent in the linear management structure.
Divisional (divisional) organizational structure
Divisional structures are based on the allocation of large production and business units with the provision of operational and production independence and the transfer to this level of responsibility for making a profit.
The structures are characterized by the full responsibility of the heads of departments for the results of the activities of the departments they head. In this regard, the most important place in the management of companies with a divisional structure is occupied not by the heads of functional departments, but by the heads of departments.
The structuring of the company by departments (divisions) is usually carried out according to one of three principles:
divisionally productive structures;
customer-oriented organizational structures;
divisional-regional structures.
The divisional management structure is shown in the figure
Rice. Divisional management structure
Benefits of a divisional management structure:
Rapid response to changes in external conditions of activity.
The convergence of the one who makes the decision with the one who implements it.
Good conditions for the growth of managers.
A high degree of coordination of management activities within one division.
Closer relationship between producers and consumers.
"Responsibility centers" work more effectively on issues of increasing profits.
Disadvantages of a divisional structure:
The presence of internal competition for resources and personnel.
Difficulty separating overheads and calculating costs.
Difficulty in reconciling the interests of different divisions.
Red tape and congestion due to a large number vertical connections.
Duplication of functions at different levels of management.
The departments maintain a linear management structure.
The remoteness of the central office from specific areas of the organization's activities, and, consequently, this leads to an increase in the number of staff and other problems associated with official abuse.
Matrix organizational structure
The basis of the matrix structure is formed by a linear-functional structure, supplemented by program control structures. In addition to the head of the organization, a program manager is determined, whose rank is higher than the rank of the head of the organization.
The matrix structures are very diverse: project management, temporary task forces and permanent integrated teams. Temporary target groups are actively used by small businesses based on venture business.
Elements of matrix organization, and in some cases matrix departmentation as a whole, have been applied in the electronics industry and other areas of so-called high technology.
To implement a specific project, an autonomous structure is created, which is similar to one of the elements of a divisional structure
The matrix structure is shown in the figure:
The advantages of the matrix structure are:
Integration various kinds activities of the company within the framework of ongoing projects and programs.
Obtaining high-quality results for a large number of projects, programs, products.
Significant activation of the activities of managers and employees of the administrative apparatus.
Involvement of managers of all levels and specialists in the sphere of active creative activity.
Reducing the burden on senior management by transferring decision-making authority to the middle level.
Strengthening the personal responsibility of a particular leader.
Achieving greater flexibility and coordination of work.
Overcoming intra-organizational barriers without interfering with the development of functional specialization.
The disadvantages of the matrix control system are:
The complexity of the matrix structure for practical implementation.
The structure is complex, cumbersome and expensive to implement and operate.
It is a difficult form of organization;
In connection with the system of dual subordination, the principle of unity of command is undermined.
There is a tendency towards anarchy, in the conditions of its operation, the rights and responsibilities between the elements are not clearly distributed.
This structure is characterized by a struggle for power.
Excessive overheads due to the maintenance of more managers.
Difficulties arise with the prospective use of specialists in this company;
Partial duplication of functions is observed;
Management decisions are not made in a timely manner; usually characterized by group decision-making.
Rice. Matrix control structure
Work on the topic:
Divisional management structures
Currently, there are such types of organizational management structures as hierarchical and adaptive. Hierarchical structures include: functional and divisional structure, and adaptive or organic - project and matrix. Each of these organizational management structures has its own advantages and disadvantages that must be considered when choosing them.
Most leaders are wondering: How to choose the right model of organizational structure.
Each type of organizational management structure has its own scope, where it operates most effectively. As a rule, the divisions of such companies are closely related and make a significant contribution to the production of final products. Accordingly, granting them divisional autonomy could undermine coherence production process. In organizations that use a functional management structure, the work process is relatively simple or can be divided into a number of simple operations that can be standardized.
The relevance of the work is expressed in the fact that any organizational management structure deserves great attention from managers, and each of its types has the right to exist and, moreover, has its own scope, where it operates most effectively.
Also, at each stage of development, companies can change the types of organizational structures, moving from simple to complex and vice versa. But in any case, the management structure must comply with the company's strategy, in the event of a change in which it is necessary to change the organizational structure, otherwise it will hinder the development of the company as a whole.
The relevance of choosing an effective management structure is explained, first of all, by the fact that for the productive work of the company and timely response to constantly changing external and internal factors it needs the most appropriate management structure for it, capable of changing and modernizing over time.
The problem of choosing and applying management structures is especially relevant for Russia at the present time. This is due to several reasons. First, the majority of Russian enterprises are in need of significant restructuring, or at least rehabilitation and improvement of management. Traditional management structures that have been used in enterprises for several decades without significant changes are currently not able to provide efficient work and only exacerbate the situation, pushing the enterprise to a crisis.
Target term paper lies in the study of tools for the interaction of the application of structures, if the organization is not enough standard mechanisms for coordinating work tasks. As a rule, they are used by functional structures to increase the market orientation of their divisions, and divisional structures - to strengthen the functional specialization of their divisions.
Chapter 1. Fundamentals of the methodology for constructing organizational structures for managing socio-economic systems
1.1. Conditions for applying the divisional structure
The simplicity and monotony of operating activities allow many service firms to use the functional structure, in particular, insurance and telephone companies, hotels. This structure is used by fire brigades, rescue services, aviation companies. The activities of the personnel of such organizations are strictly regulated by instructions.
However, functional structures that work well in stable situations turn out to be too clumsy in a dynamic external environment characterized by rapidly changing consumer preferences, rapid technological changes, a wide range of products, and also for companies operating in the markets of many countries.
The transition to a divisional form is appropriate when there is market diversity and the company is able to gain additional benefits by differentiating its products to meet the requirements of different markets. The main condition for the application of a divisional management structure is a wide range of key products, significant differentiation of markets by customers and regions, and large scale production. The divisional structure is also used by companies that are becoming too large to be squeezed into three or four functional departments.
For companies moving to divisional management structures, the key factor in competitiveness is meeting the specific requirements of target markets, and not the quality of functional tasks.
In such companies, there should be no close dependence between market-oriented divisions, and there should be no restrictions on indivisible production equipment.
The positive effect of the transition to a divisional management structure occurs only if the benefits of differentiation exceed the costs of duplication of functions.
1.2. Conditions for applying the matrix structure
The conditions for applying the matrix management structure are: the impossibility or unwillingness of the organization to limit itself to only one principle of grouping, the labor process is complex and cannot be standardized, the innovative nature of the activity dominates, the external environment is dynamic and unpredictable.
The matrix structure is used by firms that do not want to choose between regional and product groupings. The Product Manager reports simultaneously to the Product Group Vice President and the Regional Vice President.
Matrix structures are used by research organizations and management consulting firms. In this case, the project structure is superimposed on the functional one. They are useful for organizing innovation departments in companies operating in the field of high technology such as aerospace, telecommunications, electronics.
The matrix structure is used by firms operating in a fast-changing environment. commodity nomenclature. For example, firms producing sophisticated equipment for single orders, editorial offices of newspapers and magazines, record companies, cosmetics and advertising firms. All of them work in an extremely dynamic and difficult to predict market, each product is unique and can be considered as a separate project.
Thus, at every stage of its life cycle, the organization should have a management structure that best suits this stage of life.
Therefore, by continuing next stage usually is the formation of a divisional management structure on a geographical or product basis, which allows the organization to expand its scope of activities.
1.3. Divisional management structure
The divisional management structure is a set of independent units that are part of the organization, spatially separated from each other, having their own field of activity, independently deciding current production and economic issues. The scheme of the divisional management structure is presented in Appendix No. 1.
With a territorial approach to building the structure of such an organization, each of its subdivisions specializes in the production of a full range of products and services for the needs this region. This allows you to save money by concentrating in one place. commercial transactions, it is better to take into account local conditions, maintain personal contacts.
With a product approach to the formation of the structure of an organization, each of its subdivisions is focused on the production of one type of product or service for all consumer groups living in the territory where it operates. this firm. Due to the specialization of production, it is possible to significantly improve its quality and efficiency, to focus on the real needs of the market.
The market approach to the formation of an organizational structure is that each division produces products or provides services, focusing on certain group buyers who collectively form the market.
Finally, the innovative approach involves the creation within the organization of special centers involved in the development, development and deployment of the production of new types of products and services. It turns out that while some divisions produce products that are currently in demand, others are already preparing a replacement for it. This gives the organization additional competitiveness and sustainability.
Thus, the scope of the divisional management structure:
· diversified enterprises;
enterprises located in different regions;
enterprises that carry out complex innovative processes.
· the subdivisions forming the divisional structure are united among themselves, as well as with a common center by industrial, financial and administrative ties.
Industrial relations can be both technological and product. Technological ones are based on the fact that each division performs only individual operations in the chain of manufacture of the final product. Their activity is not embodied in a finished product that has independent significance. Product relations suggest that there is an exchange of finished products that are intended for use not only within the organization, but also on the side.
Within the framework of administrative relations, the management of the organization communicates to the units binding decisions aimed at achieving specific results, sets goals and basic standards for their activities, and monitors their implementation.
Financial ties are realized either through the formation within the organization and the subsequent redistribution between its divisions of a centralized fund Money, or through financial control behind their activities. The latter monitors the correctness of spending money, the timeliness of their receipt, etc.
Specific tasks of management in a divisional management structure:
substantiation of criteria, selection of projects and product groups;
careful selection of heads of departments;
· Ensuring a unified innovation policy in all product groups;
prevention within the brand concept between product groups;
· prevention of autonomous separatist development of product groups;
priority of line managers over specialists.
Large modern organizations, which have a divisional structure, exist, as a rule, in the form joint-stock companies and their associations.
The advantages and disadvantages of the divisional management structure are indicated in Appendix No. 1.
However, sometimes even divisional structures are not flexible enough in the extremely complex and dynamic environment that high-tech companies face. The change in the operating conditions of firms has led to a transition to more flexible organizational structures - matrix and project models. But from the fact that matrix structure is the most modern of the considered types of organizational structures, it does not follow the conclusion that the functional and divisional structures are dying out.
Thus, it is clear that there is no best structure for all companies. Moreover, during the life of one company, it may be necessary to change the form of the organizational structure several times, bringing it in line with the new goals and conditions for the functioning of the organization. It can be argued that for each company at each stage of its development there is an effective structure in which the goals of the company's functioning are achieved in the best way.
Currently, there are three signs of an effective organizational management structure:
The structure is in line with the organization's strategy.
The structure corresponds to the environment of the organization.
absence of contradictions in the organizational structure.
In order to bring the organizational structure in line with the organization's development strategy, it is necessary, first of all, to clearly define the main activities and key links in the value chain, which are of fundamental importance for the successful implementation of the strategy. It is these links that should be the main elements of the organizational structure.
For each individual company, the set of key activities will be different. To identify them, it is necessary to determine those types of activities that must be performed with particular quality and in a timely manner in order to achieve strategic goal of the company, as well as to determine which activities that perform poorly pose a threat to the company's existing and potential competitive advantage. It is these activities that should be key.
However, it should be noted that the set of key activities changes with the change in the company's strategy. Naturally, in this case it is necessary to revise the organizational structure of management. Otherwise, it will hinder the development of the company.
Next, you need to determine whether non-core activities can be carried out outside the company more successfully and efficiently than the company itself. The outsourcing strategy is now very popular in the West. Outsourcing involves subcontracting to small and medium-sized firms that are highly productive and efficient. In Russia, the prevailing opinion is that by transferring certain types of activities to third-party performers, the company loses control over them, which undermines the stability of the company.
To a certain extent, this position is justified, given the low discipline of deliveries that exists in Russia. However, this does not use the potential of outsourcing in the field of cost reduction, and the resources and attention of the company are diverted to activities that do not affect the formation of its competitive advantage. Thus, it is desirable for third parties to outsource activities that they can perform cheaper, faster and with better quality.
As a rule, the achievement of a competitive advantage by a firm cannot be ensured by the best performance of each of the strategic activities separately. Long-term success is ensured through the coordinated implementation of strategic activities, supported by support and support units.
Thus, the governance structure will be in line with the strategy if it ensures good coordination of related activities. Moreover, they can be related in different ways. For example, the sequence of operations of the technological process, the same clientele or the use of common distribution channels for products, the similarity of technology and staff skills. Naturally, all aspects of strategically significant activities should be accountable to one leader. However, there are situations in which the subordination of related activities to one person is impractical.
This is due, first of all, to the fact that there are objective limits to the expansion of the sphere of responsibility of the head without losing the controllability of the system. That is, it is necessary to find the optimal controllability rate, which in turn depends on a number of factors. This includes the importance of the work performed: the more responsible the work of the employee, the more attention deserves his activity. Therefore, fewer people are directly subordinate to the president of the company than those of lower-level managers who make less responsible decisions.
When determining the norm of manageability, it is also necessary to take into account the level of standardization labor processes: The more an organization relies on the standardization of work processes, the higher the rate of manageability can be. This is due to the reduced need for direct control by the manager. As an example, we can take organizational links in enterprises of mass machine production, where the labor of low-skilled workers is used and, thus, there are from 50 to 90 workers per foreman.
Hence follows next factor- the level of professional training of the employee. The more trained the employee, the less attention they require from the manager and the greater the manageability rate can be.
Often for coordination managerial tasks the company uses the mechanism of mutual approvals. Mutual agreement processes are effective in small groups. Researchers note that already in the case of 10 people, fragmentation into fractions occurs. Therefore, 5 - 7 people are considered the optimal number before reaching a consensus.
The personal abilities of the leader and his desire for power also affect the rate of manageability. For example, a "born" manager may significantly exceed the recommended values developed for managers with average abilities.
Any organizational structure should have clear links between units of a strategically significant type of activity, as well as provide the necessary coordination. The next step is to determine the amount of power that is needed to lead each unit. At the same time, it is desirable to strike an effective balance between the advantages of centralization and decentralization.
There are situations when it is not possible to subordinate related activities to one manager. Hence, the divisions become isolated from each other, which is largely facilitated by differences in goals, styles of interpersonal interactions. To deal with these problems, companies are building in special collaboration tools. These may be direct contacts between managers, connecting departments, special groups and teams, intermediary managers.
A linking position is introduced into the organizational structure when it becomes necessary to coordinate the activities of two or more departments, bypassing vertical channels of subordination. It should be noted here that this official position does not have formal powers in relation to the units being connected, but on the other hand, it has the information necessary for these units, which provides the "liaison" with great influence in this area of interaction.
A special group is created to solve a specific problem and disbands after the task is completed. Group members meet regularly to discuss general issues throughout the period from development to the launch of new products in mass production. Another means of coordination is the standing committee, which is an interministerial group whose members meet on a regular basis to discuss issues of common interest.
An integrator manager is a linking job position that has official authority over some aspects of the activities of coordinated units. This power may include the right to authorize decisions or the right to participate in the process of their preparation, as well as control over the process of implementing decisions. If the manager-integrator has the right to dispose of financial resources, then its role increases significantly. However, in any case, the manager-integrator is not endowed with direct power over the employees of coordinated units, which remains with the heads of units. Examples of integrator managers are the brand manager and project director in companies organized along functional lines.
Chapter 2 Transformation of the personnel incentive system during the transition of the organization from a linear-functional management structure to a divisional one
2.1. Transition from linear-functional to divisional structure
At present, divisional organizational structures are becoming more widespread in the Russian economy, which are formed as a result of decentralization of management within the framework of traditional linear-functional structures. This can be explained by the fact that the transition from a linear-functional to a divisional structure makes it possible to increase management efficiency by improving the personnel incentive system.
To identify the interdependence of the organizational structure and the system of material incentives for personnel, it is necessary to decompose the incentive system into its component procedures. In our opinion, it is possible to single out the following incentive procedures:
Encouraging the employee to fulfill his formal duties;
Stimulation of the qualitative development of the employee; stimulating the informal participation of the employee in the management of the organization.
Apparently, the first procedure is related to the technologies used in the organization, the second - to the strategy of the organization. Only the third procedure depends on the structure of the organization - the procedure for stimulating the participation of personnel in management. We are talking about the so-called participatory management, or self-government of employees, which exists in any organization along with the formal one.
The transition from a linear-functional to a divisional structure makes it possible to increase the scope of participatory management. In this case, the area of distribution is understood as the number of employees involved in such management. It consists of zones of participation - separate groups of employees within the organization, united by their own narrow group goal and informally participating in its achievement.
The participation zone does not necessarily cover all members of the group. The fact is that the costs of participatory management will increase at a faster pace than the number of management participants, and the growth rate economic effect, on the contrary, will decrease.
The organization will seek to expand the scope of participation when the technological processes in the organization are so complex that they require the active participation of as many people as possible. You can expand the scope of participation in the following ways:
1. By increasing the number of participation zones, the goal of the organization must be decomposed into subgoals, that is, to set individual goals for departments. With a linear-functional management structure, the goals of the units are set and adjusted by the central management apparatus, which also evaluates the degree of their achievement. This approach largely limits the use of participatory management - its subjectivity causes resistance from group members.
The solution may be to use an organizational structure in which the market participates in setting goals for departments and evaluating their implementation. This, however, should not mean complete autonomy of units, otherwise the positive effect of a large scale will be lost. Therefore, the divisional structure in some cases may be optimal - it allows you to purposefully coordinate the activities of semi-autonomous divisions and at the same time widely use participatory management.
Each of the divisions has the opportunity to create within itself its own zone of participation, another one can be created within the division involved in coordination. If we take the size of these zones equal to X, and the number of divisions ~ N, then the area of informal participation of employees in management will be X * (N + 1), in contrast to X for a linear-functional structure.
2. Having expanded the areas of participation already existing in the organization, it should, in our opinion, note the organizational culture.
Since the potential area of participation with a divisional management structure is larger than with a linear functional one, it can be expected that a change in the organizational structure of Russian enterprises will entail changes in the employee incentive system - the share of the procedure for stimulating the participation of employees in management in the total remuneration will increase.
2.2. Evolution of organizational structures: from linear to divisional
The divisional management structure is focused on customer needs.
Small firms can move to a divisional model without significant cost increases.
The emerging market relations, the decentralization of management, the rapid obsolescence of information cause high demands on the modern leader. Knowledge and skillful use of the provisions of management greatly facilitate the work of the head, help him to prioritize and systematize the work.
The base on which all managerial activity serve as organizational structures. True, recently there have been publications, the authors of which claim that a talented leader is able to lead his enterprise to success in any organizational structure. Perhaps this is so. However, we should not forget that along with talented leaders there are also less gifted ones.
In the simplest case, the structure is understood as a set of elements of the system and the organization of relationships between them. Since the functional elements in all systems are largely similar, the organization of interconnections is considered the main criterion for distinguishing structures. Based on this, it is customary to distinguish between linear, linear-functional, divisional, functional and matrix systems.
The unconditional priority in Russia now belongs to the linear functional structure, although in scientific organizations and other creative teams often prefer the matrix structure. At the same time, the authors often refer to the successful experience of using the latter in companies such as IBM, 3M, General Motors, forgetting to note that not everyone shares their opinion. Most specialists, as well as a number of employees of these firms, tend to consider the structure of these organizations as a network or divisional one. Moreover, some believe that at present there is no example of a successful use of the matrix model at all. It should also be emphasized that in the case of building an enterprise according to a matrix scheme, one of the basic organizational principles is violated - the direct flow of information through all instances.
In general, in the West, preference is given to a divisional structure. Thus, according to some economists, 95% of the 500 largest foreign companies are built according to the divisional principle. At the same time, almost all experts recognize the inefficiency of building an organization according to a functional principle.
Recently, views on organizational structures have changed significantly, and to the greatest extent this has affected the divisional principle.
2.3. Strategy and management system
The main task of the management system is to ensure the sustainability of the business and its development. When moving to new strategies, managers are faced with the fact that the level of management complexity increases dramatically due to:
a sharp increase in the number of objects under management,
business diversification,
· expansion of geography and/or assortment.
Moreover, all this takes place in a dynamically changing external environment. The usual linear-functional structures, characteristic of a stable environment, in the new conditions begin to slow down the development of the organization due to the slow passage of information through the hierarchical levels and an even slower decision-making process.
To solve this problem, a massive transition is currently beginning in Russia. large companies on a divisional management system, which necessarily implies:
the allocation of large autonomous production and economic units,
transferring responsibility for profit generation to the level of divisions
Delegation to divisions of authority to resolve operational issues.
For Russia, the process of transition to a new management tool is more painful than in the West, because:
· the Russian leader, by virtue of the prevailing national mentality, delegates power and authority “with a creak”;
middle managers in many cases resist the process, afraid to take responsibility for the results due to the same mentality already working in reverse side;
· the level of professional training of middle managers is often insufficient;
decentralization of operational decisions provides for very strict control of results from above - it is necessary Information Support extremely high level, and in our country we are just beginning to acquire the ability to work with information.
The main differences between the two organizational structures from a managerial point of view are shown below.
Table 1. Main differences in operating principles.
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In the first place in the list of management problems inherent in the divisional structure are the following:
Difficulty in controlling
struggle with centrifugal tendencies,
coordination of activities of departments
Chapter 3. Divisional management structures: product, consumer and regional
The divisional structure was first used in the practice of managing General Motors Co. (GMC) Alfred Sloan. The first divisions appeared in 1928 - 1929. However, the most wide application divisional structures in management fell on the period 60-80 years. The need to use such structures was caused by a sharp increase in the scale of business, business diversification, and the complexity of the technologies used. Large corporations turned into dinosaurs, difficult to control from the center. Therefore, there was a decentralization of management. Within the framework of the corporation, divisions appeared - production departments that have broad economic and operational-tactical independence in matters of production, sales, technical policy, logistics. At the same time, corporate management retained the right to tightly control development strategies, research and development, personnel policy, financial and investment management. The divisional structure is characterized by a combination of centralized coordination with decentralized operational management. key figures become not functional vice presidents, but line managers who lead divisions, or executive directors.
The division is structured according to 1 of 3 criteria:
1. By products or services provided (product specialization);
2. By focusing on a group of consumers (consumer specialization);
3. By service areas (regional specialization).
3.1. Product structure
Figure #1
The purpose of creating a product structure is to concentrate the same amount of attention, resources, specialists on the production and marketing of each type of various products of the company, as a company that produces only one product devotes to these products. For this, product branches are organized, the powers for the production and marketing of products are delegated to the executive directors of the product branches. In each branch, functional secondary services are organized, which are directly subordinate to the executive director, and, on the other hand, are indirectly managed by functional primary services in terms of their competence. The president of the company directly manages the vice presidents and executive directors grocery branches.
3.2. Consumer structure
Figure #2
A consumer-oriented divisional structure is created when a firm produces homogeneous products or services that must take into account the needs of several large consumer groups. The goal is to satisfy all needs as well as a company focused on 1 group of consumers would do. Most often used in banking and the lending sector.
3.3. Regional structure
The regional divisional structure is appropriate when the company's activities cover large geographical areas with a variety of climatic, socio-economic and national characteristics. The goal is to simplify communication between the producer and the consumer, to facilitate the solution of problems of local legislation, to take into account customs and social status people living in this area. In this case, in each major city, region, a regional branch serving this territory is organized. Such structures are especially typical for large trading companies. As a result of expanding the boundaries of the operational and economic independence of the divisional department, the latter have become a kind of profit centers for corporations that actively use the freedom granted to them to increase business efficiency and penetrate new markets. At the same time, divisional structures lead to an increase in the number of hierarchical levels of management, an extended management vertical. They require the creation of intermediate levels of management to coordinate the work of production branches, the creation of a functional secondary structure in the branches themselves. The duplication of management functions leads, in turn, to a significant increase in the cost of maintaining the personnel of the management apparatus, an increase in the degree of inertia of the management system. The main disadvantage of the linear-functional and divisional structures is the lack of horizontal links between units of the same management level. In the event that it is not possible to short time solve a complex, unstructured, new management problem, the hierarchical structure does not have the necessary flexibility, i.e. ability to adapt. Flexible response to complex problems is ensured through the use of so-called adaptive organizational structures, in which subordinate links are replaced by horizontal coordination links. Most good examples use of adaptive structures are firms Intel, Compaq, Hewlett Packard.
3.4. Clean design structure
A pure design organization is formed to solve a complex long-term management problem, the implementation of a large-scale costly project. To do this, focus on problem solving the best specialists from functional services and production units, and the structure itself looks like this:
Figure #3
Thus, within the usual divisional structure, a multifunctional group of specialists is created, the work of which is coordinated by the project manager, who has the right to manage specialists and manage the resources allocated for the implementation of the project. He is also responsible for its implementation to the president of the firm. After the end of the project this structure is liquidated. Experts move to new project either return to their previous job or quit. Creating a clean design organization requires significant investment and time. Therefore, the creation of such structures is expedient in the implementation of long-term long-term projects.
Conclusion
1.1. Reducing the size of units and staffing them with more qualified personnel;
1.2. Reducing the number of management levels;
1.3. Group organization of labor as the basis of a new management structure;
1.4. Orientation of current work, including schedules and procedures, to the needs of consumers;
1.5. Creation of conditions for flexible product packaging;
1.6. Stock minimization;
1.7. Quick response to changes;
1.8. Flexible equipment;
1.9. High performance and low costs;
1.10. Impeccable product quality and focus on strong relationships with the consumer.
Experienced managers know what the structure, processes, and culture of organizations should look like, and are clear about their goals.
Many complex factors and parameters make up the optimal organizational structure. The key decisions of the model are: division of labor, manageability, distribution of control and delegation of authority. They reflect the interaction of these factors between the environment and managers. That is why key decisions are complex, and managers do not have the opportunity to design the best structure. Optimal Model depends on the interaction of factors of the size of the organization of the environment and management.
Typically, mechanistic organizations are more formalized, centralized, and specialized than organic ones. They are also less differentiated and provide integration through hierarchy, rules, procedures and planning. Organic organizations, however, achieve integration by more complex methods, including boundary roles, order groups, committees, and other forms of collaborative activity. Regardless of the organization's specific configuration and integration strategy, the goal of the organizational model is to guide the behavior of individuals and groups in order to improve organizational performance.
Thus, organizational decision making plays a key role in the organizational model. Strategies that have been successful in the past are becoming ineffective in the light of international competition, changing technologies and changing forms of industrial development. Just as an organization experiments with new strategies, they will expand their experiments with new organizational models. These models will be more like organic models than mechanistic ones and will generate many of the characteristics of networked organizations.
So there is no doubt that in the near future we will be faced with a wide variety of structures, each of which will meet the needs of a particular organization.
Summarizing all the above, we can draw the following conclusions:
Having studied all the arguments "FOR" and "AGAINST", it becomes that organizational management structures are needed, as they contribute to organizational effectiveness. The lack of an organizational management structure creates chaos in the enterprise: employees do not understand what they should do, how they should do it and with whom they should work; heads of various departments have no idea how their work is combined with the work of other departments. An organization without a governance structure will inevitably turn to politicking and favoritism for promotions and promotions, and without accurate job descriptions, no framework can be established to prepare other employees to do the jobs of those employees who are promoted.
Managers pay great attention to the principles and methods of building management structures, as well as the requirements for organizational structures. Such as optimality, efficiency, reliability, efficiency, flexibility and stability of the management structure. By adhering to these requirements and principles, the organization will be able to achieve the goal and complete the tasks with high efficiency, that is, actively interact with the external environment, distribute and direct the efforts of its employees productively and expediently, thus satisfying the needs of customers.
There are two types of organizational management structures: mechanistic and organic. The mechanistic model is an organizational design whose goal is to achieve a high level of production and efficiency based on the widespread use of rules and procedures, centralized authority and high specialization of work. These are such types of organizational structures as linear, linear-headquarters, functional, divisional structures. The mechanistic model is effective for firms that use mass production technology, for which there is a market for a more or less standard product. The task of the manufacturer is efficient production by using conventional means. The manufacture of products is carried out taking into account technical standards. In such organizations, ideas are applied scientific management. The organic model aims to achieve high levels of adaptability and development with limited use of rules and procedures, decentralization of power, and a relatively low degree of specialization. These are such types of organizational structures as matrix, project structure. In such firms, the cycle begins with product development. The key to success is the ability, through research, to create New Product, which can be manufactured in existing equipment or in a new facility if a market is defined for it. To carry out the functions of development, marketing of production, scientific personnel and specialists of the highest qualification are required. Since the success of these firms depends on the application of new scientific knowledge, the organic model is most effective for them.
In the near future, we will face a wide variety of organizational management structures, each of which will meet the needs of a particular organization. These models will be mixed, and more like organic models than mechanistic ones.
Bibliography
1. Akberdin R.Z., Kibanov A.Ya. "Improving the structure, functions and economic relationships of the management units of enterprises in the forms of management." Tutorial. - M.: GAU, 2003.
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11. Reiss M. "Optimal complexity of management structures" // Problems of theory and practice of management. - 2001. - No. 5.
Application No. 1
Scheme of the divisional management structure.
Reiss M. "Optimal complexity of management structures" // Problems of theory and practice of management. - 2001. - No. 5. S. 36
"Organisation management". Edited by Z.P. Rumyantseva and N.A. Solomatina. - M.: Infra - M, 1995. S. 169
Meskon.M.Kh and others. Fundamentals of management / per. from English. M. Delo 1992. S. 180
Kabushkin N.I. "Fundamentals of Management". - Minsk: "New Knowledge", 2000, p. 371
Lafta JK Efficiency of organization management./Study manual - M. Russian business literature, 1999. S. 366
Vesnin V.R. basics of management M. "Gnom-press" 1999. S. 178
Akberdin R.Z., Kibanov A.Ya. "Improving the structure, functions and economic relationships of the management units of enterprises in the forms of management." Tutorial. - M.: GAU, 2003. pp. 189-192
Vikhansky O.S. Naumov A.I. Management: person, strategy, organization, process / Textbook. - M. "Firma Gardarika", 1996. S. 273
James L. Gibson, D. Ivantsevich, James H. Donnelly - Jr. "Organizations: behavior, structure, processes". - M .: Infra - M, 2000.S. 263
James L. Gibson, D. Ivantsevich, James H. Donnelly - Jr. "Organizations: behavior, structure, processes". - M .: Infra - M, 2000. S. 268
Lafta JK Efficiency of organization management./Study manual - M. Russian business literature, 1999. S. 209
"Organisation management". Edited by Z.P. Rumyantseva and N.A. Solomatina. - M.: Infra - M, 1995. S. 123
Lafta JK Efficiency of organization management./Study manual - M. Russian business literature, 1999. From 34
"Organisation management". Edited by Z.P. Rumyantseva and N.A. Solomatina. - M.: Infra - M, 1995. S. 198
Lafta JK Efficiency of organization management./Study manual - M. Russian business literature, 1999. S. 111
Kabushkin N.I. "Fundamentals of Management". - Minsk: "New Knowledge", 2000, p. 163
Reiss M. "Optimal complexity of management structures" // Problems of theory and practice of management. - 2001. - No. 5. S. 59
The business management system can be different. The most common and used is divisional. Let us consider in more detail its main content, disadvantages and advantages.
Divisional (from the French "division" - division) implies the presence of such a system in which there is a clear division of management into products and functions. The key figures in this case are the managers who head the leading production units.
The divisional management structure begins to form when there is a sharp increase in the size of the enterprise, the diversification of its activities (diversification), become more complicated in a situation where the external environment is changing very dynamically.
The fact is that adding new levels of hierarchy to it leads to the fact that the head of the company will not be able to make tactical decisions in these areas of activity. The divisional management structure allows you to delegate basic powers managers who lead these areas, providing limited autonomy. But the head of the company reserves its strategic development.
Therefore, thanks to only the usual functional structure can be turned into a divisional one. The key figures are top managers who head a number of production departments.
Structuring in accordance with divisions should be carried out according to one of the selected criteria:
- by the nature of the products (services or products), the system becomes multi-divisional;
- by the presence of orientation to specific consumer groups, it turns into a consumer one;
- according to the characteristics of the territories served, the structure is distinguished by regional specialization;
- by the presence of several points of sale or large groups of consumers, it is a market one;
- the global system is distinguished by the type of products and regions of sale.
It implies that most of the functions (accounting, planning, etc.) are transferred to production units. This will allow you to fully or partially take responsibility for the development, manufacture and marketing of products. This will free up the upper echelon of the company in order to solve strategic problems.
The disadvantages of the divisional structure are as follows:
Firstly, such small business management is characterized by the presence of a large number of "floors" in the management vertical.
Secondly, in this case, the headquarters structures of the departments are separated from the main departments.
Thirdly, connections in the organization are vertical. Therefore, there are traditional disadvantages - paperwork, congestion of some departments, the presence of poor interaction.
Fourthly, duplication of powers at different "levels" is possible.
Fifth, the presence of high costs for the maintenance of managers.
The advantages of a divisional structure are as follows:
First, it is able to provide management of a diversified enterprise in which the total number of employees is large and which has territorially remote divisions.
Second, the structure can provide flexibility and rapid response to changes in the company's immediate environment.
Thirdly, by expanding the boundaries of the departments, they can become a "profit center", working actively to improve the quality of this production.
Fourth, there is a close connection between the consumer and production.
Therefore, in large enterprises, a divisional management structure is the best option.
CONTENT
art of management
organization structure
organization structuring
types of divisional management structure
The concept of organizational structure
Divisional management structure
Advantages and disadvantages of a divisional management structure
Conclusion
Bibliography
The concept of organizational structure
"Organization management structure" is one of the key concepts of management, closely related to the goals, functions, management process, the work of managers and the distribution of powers between them. Within the framework of this structure, the entire management process takes place (the movement of information flows and the adoption of managerial decisions), in which managers of all levels, categories and professional specializations participate. The structure can be compared to the frame of the management system building, built to ensure that all processes occurring in it are carried out in a timely manner and with high quality. Hence the attention that leaders of organizations pay to the principles and methods of building management structures, the choice of their types and types, the study of trends in change and assessment of compliance with the tasks of organizations.
The art of management- the ability of a person to make non-trivial decisions in conditions of lack of information and time. It is based on the methodology and principles of management science, which, in turn, is a discipline of the period of integration of sciences and is based on the achievements of the theory of automatic regulation, information theory, cybernetics, economics and responds to changes in the basic concepts of the political life of society. At the same time, the art of management has absorbed the world achievements of psychology, logic, rhetoric, ethics, philosophy, law, as well as methods of influencing the greed and society of various religious denominations. For effective management organization it is necessary that its structure is consistent with the goals and objectives of the enterprise and is adapted to them. The organizational structure creates a kind of framework, which is the basis for the formation of individual administrative functions. The structure identifies and establishes the relationship of employees within the organization.
Organization structure also defines the structure of subgoals, which serves as a selection criterion in the preparation of decisions in various parts of the organization. It establishes the responsibility of the departments of the organization for a thorough study of individual elements of the external environment and for the transmission to the appropriate points of information about events that require special attention.
However, with the development of specialization and the complexity of enterprises, this idea of central services has undergone major changes. They began to play a much more important role, providing management with service, information, and even management of other departments of the organization. With the increasing role of central services, the former clear and simple relationship between line and central services has become impossible.
Divisional management structure
The key figures in the management of organizations with a divisional structure are not the heads of functional units, but the managers (managers) who head the production departments.
Structuring the organization departments are usually produced according to one of three criteria; by products or services provided (product specialization), by consumer orientation (consumer specialization), by territories served (regional specialization).
Organization of divisions along product lines 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. 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.
Some businesses produce a wide range of products or services that meet the needs of several large consumer groups or markets. Each group or market has well-defined, or specific, needs. If two or more of these elements become particularly important to an enterprise, it may use a customer-oriented organizational structure in which all of its divisions are grouped around certain customer groups.
If the activity of the enterprise covers large geographical areas, especially on an international scale, then it may be appropriate to organize the structure according to the territorial principle, i.e. at the location of its divisions. The regional structure facilitates the solution of problems related to local legislation, customs and consumer needs. This approach simplifies the communication of the enterprise with customers, as well as communication between its departments.
different types divisional structures have the same goal - to ensure a more effective response of the enterprise to a particular environmental factor.
The product structure makes it easy to handle the development of new products based on competition, technology improvement or customer satisfaction. The regional structure allows for more effective consideration of local laws, socio-economic systems and markets as market areas expand geographically. As for the consumer-oriented structure, it makes it possible to most effectively take into account the needs of those consumers on whom the enterprise is most dependent. Thus, the choice of divisional structure should be based on which of these factors is most important in terms of ensuring the implementation of the strategic plans of the enterprise and the achievement of its goals.
Advantages:
provides management of diversified enterprises with a total number of employees of the order of hundreds of thousands and territorially remote divisions;
provides greater flexibility and faster response to changes in the enterprise environment in comparison with the linear and linear - staff;
when expanding 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.
Flaws:
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 company headquarters;
the main connections are vertical, therefore, the disadvantages common to hierarchical structures remain - red tape, congestion 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
It is obvious that each organization is a rather complex technical, economic and social system, reflecting its individuality and specificity. It is possible to describe this system if we determine the nature of interaction between departments.
The methods of interaction of the parties characterize the system under consideration in a certain way and allow us to judge how effectively it copes with its main task - the organization of harmonious interaction between the individual and the external environment. An important place in this is occupied by the structure of the organization through which or through which this interaction is carried out.
Bibliography
Smirnov E.A. "Fundamentals of the Theory of Organization" // UNITI, 1998
"Organisation management". Textbook//Edited by Z.P. Rumyantseva and N.A. Salomatina. - M.: Infa-M, 1995.
“Workshop on management theory” Textbook/ /Ed. Yu. V. Vasiliev, V. N. Parakhina, L. I. Ushvitsky. -
2nd ed., add. - M.: Finance and statistics, 2005.
Enterprise management, which is clearly separated by individual products and individual functions. The divisional structure arises when, as the main criterion for combining employees by department, is issued by the organization.
A divisional structure is sometimes referred to as a product structure, a program structure, or a self-sustaining business unit structure. Each of these terms means the same thing: different departments come together to produce a single organizational result—a product, program, or service for a single customer.
The emergence of such structures is due to a sharp increase in the size of enterprises, the diversification of their activities, the complication technological processes in a dynamically changing environment.
The simple addition of another level of hierarchy to the structure of the enterprise will lead in such conditions to the fact that the first person of the enterprise will no longer be able to make strategic decisions in certain areas of activity.
When large organization manufactures products for different markets, the divisional structure works well because each division is independent business. Each such unit is headed by its own head responsible for the results of its work, and each business unit has functional divisions like an independent company. These divisions are engaged in the development of their own products, sales, marketing and financial operations.
Functional structure
Divisional structure
The main difference between a divisional structure and a functional one is that the management chain for each function converges in the divisional hierarchy at a lower level. In a divisional structure, differences of opinion between departments will be settled at the division-division level, not the head of the company.
In a divisional structure, divisions are created as autonomous units with their own functional departments for each division.
An alternative to divisional division by product line is to group the activities of companies by geographic regions or customer groups.
In such a structure, all functions in a particular country or region report to a single unit manager. The structure helps to focus the company's efforts on the needs of the local market. Competitive advantage can be provided through the production or marketing of a product or service adapted to the characteristics of a given country or region.
Advantages and disadvantages.
The division of employees and resources along divisional lines contributes to a flexible, responsive company response to changes in the external environment, since each of the business units is relatively small and fits well into its environment. Since the attention of employees is focused on a single product line, the needs of customers are satisfied at a high level. Coordination within functional departments improves because workers come together under one roof and focus on the efficient production of one product line. There is good coordination within departments, but coordination between departments is often weak. Other important disadvantages are the duplication of resources and the high cost of managing autonomous units. Instead of one department of research and development, in which all specialists of this profile are concentrated, each division should have its own department of development. As a result, the organization reduces its efficiency and loses the opportunity to enjoy the scale effect. Since the functional departments of the units are few, their technical specialization is low, and the opportunities for gaining experience and training are limited.
Summing up the above, we can briefly highlight the advantages and disadvantages of the divisional approach to the organizational structure:
- Advantages of the divisional structural approach.
- Fast response, good adaptability to unstable environment.
- Stimulates increased attention to the needs of customers.
- Excellent coordination of activities of functional units.
Flaws:
- Duplication of resources in departments.
- Less high level of technical development and specialization in departments.
- Weak coordination of interaction between departments.
