The implementation of plans and programs is achieved by building an organizational structure that allows you to effectively direct the joint activities of personnel through an appropriate distribution of duties, rights and responsibilities. The management of the enterprise should choose an organizational structure that meets strategic plans and ensures effective interaction with the environment and the achievement of goals.
Description of the organizational structure of the enterprise
Organizational structure is understood as a formal scheme according to which work tasks are divided, grouped and coordinated.
The characteristics of the organizational structure include six main elements:
- specialization of work tasks;
- departmentalization;
- team chain;
- rate of controllability (measured by the maximum number of subordinates in one manager);
- centralization and decentralization;
- formalization.
Traditional Departmentalization Approaches
The specialization of work tasks consists in dividing the entire volume into separate elements and / or stages and securing the employee to perform a narrow range of tasks, operations or procedures. The approach, on the basis of which then individual work tasks are grouped, was called departmentalization. There are five approaches to the formation of the organization structure :
1. The functional approach is that the grouping of work tasks and specialized specialists into departments is carried out in accordance with the types of activities and qualifications - engineering department, accounting, marketing, production (Fig. 1).
Fig. 1 . Organizational structures of an enterprise: an example of a functional structure
2. In a divisional approach, the basis for the creation of self-sufficient units is the similarity of products and implemented programs or the influence of a geographical factor (Fig. 2).
Fig. 2 . Organizational structures of an enterprise: an example of a divisional structure
3. The matrix approach consists in the coexistence of divisional and functional team chains, as a result of the intersection of which there is a double chain of command: the employees are accountable to two direct managers - the project or product manager, in whose development or implementation they are involved, and the head of the functional department (Fig. 3).
Fig. 3 . Organizational structures of the enterprise: an example of matrix structure
New in company structures
Among the "new", more flexible and adaptive are such approaches to the formation of the structure:
- The team approach is used to organize the implementation of specific tasks. To coordinate the activities of the main departments, various teams can be created.
- With a network approach, the organization “shrinks”, while the leading role and key position in it is played by the broker, whose role is to maintain interconnection with other departments using telecommunication technologies. Departments can be geographically scattered around the world, their activities are independent, the cost of broker services is paid on the basis of the terms of the contract with profit. This diagram of the organizational structure of the enterprise is reflected in Fig. 4.
Fig . 4 . Organization network structure
Factors affecting the choice of structure
The choice of organizational structure is influenced by many situational factors both within the organization and beyond: the scale of the business, its specificity, the degree of mobility of the external environment, characteristics of the industry in which the company operates, etc.
Advantages and disadvantages of adaptive and bureaucratic structures
Among the bureaucratic structures, which are also called hierarchical, are linear, functional, divisional, etc. Among adaptive (organic) structures, matrix, design, network, etc. are distinguished. The characteristic features of these organizational structures are given in table 1.
Table 1 . Advantages and disadvantages of bureaucratic and adaptive organizational structures
| Bureaucratic structure | Adaptive structure |
| pros | • The presence of clear ties between the subordinate and the leader • The ability to fully control subordinates • Rapid response to crisis situations | • Effective motivation • High level of employee responsibility • Personnel initiative • Quick exchange of information between employees at different levels |
| Minuses | • Slow movement of information • Low employee responsibility • The lack of initiative of staff • The struggle for power | • The probability of uncontrollability • Difficulties in finding qualified employees |
In general, the organizational structures of an enterprise (for example, bureaucratic structures) are better suited to companies operating in a stable environment, and organic to firms that are forced to work in conditions that are changing very quickly.
Comparative characteristics of organizational structures
The organizational structure of the company LLC, depending on the features of its construction, has clearly expressed advantages and disadvantages, which are reflected in table 2.
Table 2 . Comparative characteristics of organizational structures
| Title | Description | Benefits | Limitations |
| Linear | The organizational structure of the enterprise is created by transferring tasks and powers from the head to the subordinate and so on along the command chain. This creates hierarchical management levels | Simplicity and ease of control | A manager of any rank should be competent and efficient in the performance of any managerial function. Effective management of a highly diversified and geographically diversified business is not possible |
| Headquarters | The organization creates a headquarters (administrative apparatus). The experts included in its composition (for example, lawyers, specialists in training and development of personnel, etc.) consult with top managers and line managers | Reducing the level of requirements for line managers and facilitating their work | Such an example of the organizational structure of the enterprise is characterized by the absence or limited authority of the headquarters |
| Functional | Certain management functions, tasks and responsibilities are clearly assigned to individual units (production, marketing, marketing, finance, etc.) | Optimization of activities in each functional area. It is most effective when the range of products is relatively constant and the organization solves predominantly the same type of management tasks | None of the departments as a whole is interested in achieving corporate goals, provokes conflicts between departments. Difficulties in the preparation of the personnel reserve of senior managers due to the narrow specialization of middle managers. Slow response to environmental changes |
| Divisional | Division of the organization into divisions by type of goods or services, consumer groups or regions | Effective structure for large, geographically dispersed companies with a wide range of goods or services. Allows you to focus on specific products (services), consumer groups or regions. Quickly responds to changes in technology, consumer demand and competition | Increased costs associated with duplication of work (including those performed by functional units) in various divisions |
| Design | A temporary structure created to solve a specific task, limited in time. It is headed by a project manager, to whom a team of specialists reports and at the disposal of which are the necessary resources | All the efforts of employees are aimed at solving one specific problem. | It is impossible to ensure full or guaranteed employment of project participants after its completion. Problems with team workload and resource allocation |
| Matrix | The Matrix Organization is divided into structural (usually functional) units, with project managers who are subordinate to senior management. When implementing projects, managers temporarily manage the activities of employees of functional units. In all that goes beyond the scope of project activities, these employees are subordinate to the heads of their departments | Flexibility and speed of response to environmental changes. The ability to quickly reallocate resources | Violation of the principle of unity of command due to double subordination of employees. The occurrence of conflicts on the basis of resource allocation |
Thus, when deciding on the choice of organizational structure, it is important to know and take into account its advantages and disadvantages, as well as the influence of factors such as the scale of the business, its specifics, the degree of uncertainty of the external environment, the characteristics of the industry in which the company operates, and others of a universal type. structure for all occasions simply does not exist.