🚥 🧘🏻 🕝 Management structure: types, types and functions 👼🏿 🔀 🔽

What is a management structure ? What does this term mean? If you do not know what to answer questions, then you should definitely read our article. We will start with the management structure and end with all the nuances of this area. Believe me, it will not be boring.

What it is

We will analyze the structure of the management system, but first decide what management is.

The term means all kinds of forms, methods and techniques of production and personnel management. As soon as management appeared, its object was indivisible, but over time several objects were spun off from the general object, from which their directions later appeared. If we talk about the present, then there are types of management characteristic of a particular country. For example, the Russian management model is known throughout the world.

How it all started

Before analyzing the management structure, it would be nice to define the management structure.

To date, management theory distinguishes two types of enterprise and organization management: organic and bureaucratic. Each of them has different foundations and characteristic features that allow us to highlight areas of use and development prospects.

According to historians, the bureaucratic type was the first to form. The author of the concept was the German sociologist Max Weber, he developed the theory at the beginning of the twentieth century. What is its essence? Weber developed a normative model of rational bureaucracy, which radically changed the reporting system, communication, work structure, remuneration and relations at the enterprise. The sociologist called the basis of the model an organized organization, which makes serious demands on both people and structures. You can highlight the key provisions of this model of the management structure:

Division of labor, each position should only be a qualified specialist.
Hierarchical management. In this case, the lower level is subordinate to the upper.
Norms and formal rules that ensure the same performance by managers of their duties and tasks.
The spirit of formal concern. Inherent to officials during the performance of their duties.
Hiring only if the candidate meets the qualification requirements, and not the personal preferences of the leader.

In the bureaucratic management structure, several basic concepts can be distinguished - responsibility, rationality, hierarchy. The sociologist believed that it is impossible to remove a person and position, because the content and composition of management activities should be determined by the needs of the organization, and not its employees. Specifically formulated prescriptions do not allow employees to be creative in completing tasks or to show subjectivity. This, perhaps, is the difference between the modern structure of management organization and the historically established community. The difference is also in the fact that the community structure emphasized skill and partnership.

The bureaucratic management structure over the years of existence has repeatedly proved its effectiveness especially in very large organizations. After all, it is there that they need coordinated work in order to move towards one goal.

What is so unusual about the organizational structure of a management organization? Its essence is to share the labor of managing production. In this case, each position and unit is created in order to perform certain work or a set of functions. In order to carry out functions in a quality manner, officials are accused of certain rights to dispose of resources. These same people are responsible for the performance of those functions that have been assigned to them.

Management Directions

We have already said that the structure of a management system has many branches. In addition, the structure has certain requirements. Among them:

Efficiency Strategic decisions must be made in a timely manner.
Optimality. It is about rationality with a small number of management levels.
Reliability. Reliable and uninterrupted reflection of information.
Flexibility. In this case, we are talking about the ability to constantly change.
Profitability. This is achieved due to the maximum effect at low cost.
The stability of the structural system. We are talking about the integrity and immutability of the system both with internal influences and with external ones.

Management structures in management are of several types. We will consider them:

Strategic management. We are talking about orienting production to the desires and needs of consumers, adapting the enterprise to the external environment, as a result of which the intended goals are achieved. Strategic management is controlled by the top management of the organization.
Operational management. It implies the organization and management of the implementation of operational plans, as well as production control. This includes the allocation of resources, work, making important adjustments to the financial and production processes, as well as the progress of these tasks.
Tactical management. The tactical management structure in management is aimed at developing an enterprise strategy. Usually this is done by the middle management, and it makes a prospect for about a year. Management of this type can be attributed to everyday work.
Production management. It is about the management of auxiliary, basic, as well as supporting processes, due to which the goods delivered to the market are produced.
Marketing management. The essence of management is to study markets, promising and prevailing market conditions, shape pricing policies, create distribution channels, and engage in advertising.
Management in the field of logistics. Here we are talking about the execution of business contracts, which are concluded for the supply of semi-finished products, materials, components. And this also includes delivery, packaging, input control processes, delivery of finished products to the population, its storage.
Financial management. It includes the management of financial relations and the movement of financial resources.
HR management. Here we are talking about the planning of labor resources, staff assessment and selection of the best of them, staff selection, determination of salaries and benefits, training and professional development, professional adaptation and orientation, assessment of labor activity.
Ecouting management. Management of the organizational structure of management of this type is aimed at collecting information, its analysis and processing. This is done in order to later be able to compare their own indicators with other enterprises engaged in similar work.
Innovation Management. The task of this direction is to embody the creative activity of people in creating products that are better in some ways than already released products.
Adaptive management. The staff is committed to adapting the company to environmental conditions.

As you can see, the organizational structures of management management are very different from each other. The topic has not yet been disclosed and it’s quite difficult for you to understand what it is about, but if you continue reading, then there will be no questions.

Types of management

Before expanding on the topic, let's find out what the meaning is in the definition. So, the types of management understand the special areas of management activity, which are inextricably linked with the solution of specific management tasks.

Management is divided by the feature of the object into general and functional. The meaning of the first is to manage the work of the enterprise in whole or in separate links. Special or functional management is understood as the management of certain areas of the enterprise or its links. These are precisely the areas of management that we have listed above.

Management also differs in terms of content. Allocate strategic, regulatory and operational management. The first assumes that the manager will develop strategies, distribute them over time, provide control over their implementation, and build the potential for success of the enterprise.

Regulatory management includes the implementation and development of the enterprise philosophy, business policy, the formation of common strategic intentions, and the determination of the company's position in a market niche.

On operational management, we can say that this is the development of operational and tactical measures that are aimed at the actual implementation of enterprise development strategies.

Management principles

The structure of financial management or any other is based on certain principles. We’ll talk about them now. What are principles? These are stable requirements and general laws, only if they are observed, the effective development of the enterprise is ensured.

So, the principles include:

Hierarchy.
Integrity.
Optimality and focus.
Democratization.
Decentralization and centralization.

There are also several management approaches that fit not only into the structure of financial management, but also from any other. There is a process and systematic approach, and if in the first case we are talking about management, like a process, for example, organization, planning, motivation, curation and so on, then in the second we talk about the designation of tasks and goals in exponential form. As a rule, a goal tree is built using which the system is divided into subsystems. A striking example is the division of the organization into units.

It’s still not clear what it’s about, right? It's okay, we will talk about each approach separately.

Systems approach

If everything is clear with the structure of management principles, then let's take a deeper look at the systems approach. The basis of this approach is the study of objects as systems. Thanks to a systematic approach, the company adequately poses problems in certain areas and identifies them.

To make it clearer, let's define the system. So, a system is a set of elements that are interconnected, forming unity, integrity.

A systematic approach has its own principles, which also need to be discussed. Among them:

Structurality. The description of the system occurs through the establishment of its structure, that is, the relations and connections of the system.
Integrity. We are talking about the dependence of each element on functions, places and other things.
Hierarchy. Each component of the system, in turn, is also a system and so on in everything.
The relationship of environment and structure. Properties in the system appear and form only when interacting with the environment. The plurality of descriptions of each system. Since each system is complex, for proper study it is necessary to build many different models that will describe the specific features of the model.

The structure of the quality management system implies some more rules. Here they are:

Decision making can begin only with a clear statement and identification of specific goals.
Any problem is considered as a single whole and for this reason the consequences of each solution must be identified in advance.
It is necessary to find alternative ways to achieve goals, as well as analyze them.
It should not be such that a common goal conflicts with individual goals.
It is necessary to observe the principle of ascent from the absolute to the concrete.
There should be a unity of synthesis, analysis, and we are talking about both historical and logical.
In the object, different-quality relationships should be identified.

To make the structure of the quality management system more understandable, consider how this happens with an example.

During a systematic approach, the output parameters of a service or product are first formed. At the same time, managers must rely on marketing research. Based on the same data, issues are resolved regarding the subject of production, labor costs, the quality of the goods produced, and so on. It is important that all questions must be answered at the same time. Only by observing this rule will the output be competitive in accordance with the standards.

The next step in the functional structure of management will be the determination of the input parameters. It is about the necessary resources and information for the process. Managers will first study the organizational and technical level of production of the system: the level of organization of production, technology, management and labor. Then, the obtained data will need to be compared with the parameters of the external environment, as economic, political, social, technological and others.

By the way, systems can be both open and closed. Let's talk about each of them in more detail.

Closed and open systems

We have already explained in general terms what the structure of strategic management is and not only. Let's now understand what an open and closed management system is.

Open is the system that is powered by resources and energy from the outside. A similar system is a radio or calculator with a built-in solar battery.

About the closed one can say that it has a source of resources or energy within itself. An example of a closed system is a watch that has an internal energy source. This also includes production with its own energy source or a working machine.

It turns out that business enterprises cannot work on the same internal energy, because work will require supply, work with potential buyers, and so on.

Management functions

The organizational structures of the management system do not exist as beautiful names, but have a number of functions. Thanks to them, a stable composition of the types of managerial work that have their own characteristics is determined. As a rule, they are characterized by uniformity of actions, goals, objects. Functions also have common tasks and areas of managerial activity; they are least dependent on the specifics of the enterprise.

Differentiation of functions allows you to highlight the main tasks and types of managerial activity, as well as regulate the procedures and rules for their implementation.

We reviewed and talked about the types of management structure about a systematic approach, but still the topic has not been fully disclosed. There are not enough explanations on the functions of the system approach. So, the functions are divided:

Are common. This includes planning, setting goals, monitoring and organizing tasks.
Socio-psychological. It is about motivation and delegation. The function is directly related to the psychological situation and the nature of production relations.
Technological. Communications and solutions are part of this function.

All these functions are inextricably linked and complement each other. In other words, you cannot perform one function and not engage another.

But this does not mean that the working field, which is considered the organization’s management, cannot be divided into separate functions focused on the main groups. We are talking about the following groups:

General management. This includes the establishment of management policies and regulatory requirements, motivation, organization of work, control, coordination and, of course, responsibility.
Certain management areas. A prime example is manufacturing, marketing, human resources, fixed assets and finance.
Enterprise structure management. We are talking about the subject of activity, creation, legal forms, organization, liquidation and reconstruction of the enterprise.

Process approach

Organization of the management structure (management) can be planned with reference to the process approach. What is it about? This is a management approach based on a systematic approach. Based on the process approach, the enterprise’s work is organized in such a way that the organization’s activity is divided into business processes, just like the management apparatus into blocks. As a rule, the process approach is presented as a scheme with separate links in the chain (operations). A derivative chain always ends on a product. By the way, the links that are responsible for a particular business process are formed from structural units.

The principles of the process approach include the following:

Responsibility of all participants in the chain for economic results.
Focus on consumer preferences and improving product quality.
Motivation of employees at the highest level.
Weakening of bureaucracy.

But the process approach, as the structure of the management process, has its own distinctive features. These are the following points:

Management steps are reduced, due to this, decisions are made in an accelerated manner.
Management delegates its authority and responsibility to the employees of the enterprise.
The company carefully monitors the quality of services and products.
All technologies related to business processes are automated and formalized.

What problems can arise?

The structure and concept of management, or rather, the process approach, sounds pretty simple, but in fact, managers face a number of problems. Why it happens?First of all, everything depends on money and time costs. But, on the other hand, this applies to any situation where an unverified theory is being introduced into an enterprise. Nevertheless, this is not the only problem associated with the transition to a process approach. There are quite a lot of them, we will list only the main ones:

Implementation of the process approach only at the formal level.
Implementation of the approach at an informal level.
Inconsistency of the created system and the real state of affairs.
The processes were not regulated or the management is not able to manage them.
Managers do not want to perceive the process approach as a new ideology of the enterprise.
Managers are not ready for drastic changes, especially to review the structure of the company.
There is not enough determination, motivation or competence in matters of process optimization.

How to switch to process control with the least losses?

The quality management structure is such that the correct methods must be applied for its successful implementation. But how to achieve this if both formal and informal implementation are considered a mistake? There are several methods, consider them in more detail.

Transition Methods

There are two methods for a painless transition to a new type of enterprise management structure: a complete and an end-to-end method.

The first method is suitable for a systematic and process approach, since it is based on the allocation of business processes in an existing organizational structure. Only then can we move on to the process structure. The foundation of the method are several provisions. Namely:

Classification and allocation of business processes.
Development of methods and standards that ensure the effectiveness of management processes.
Formation of a chain of processes within an existing structure.
Selection of resources and the creation of an information base for the performance of work within the framework of processes.
Analysis and monitoring of processes.
Improving business processes.
Implement measures to help achieve your planned goals.

As for the end-to-end method, it is suitable for a situational or process approach. What is the essence? Management notes end-to-end business processes for which a sequence of work and workflow is being prepared. After that, they are included in the process structure, which is most often matrix. In this method, the model is first prepared according to the situation, then existing processes are analyzed. Then begins the development of a better model and the reorganization of those processes that work on its basis. The final step is to prepare a new process structure for the enterprise.

It turns out that all the problems arise due to the lack of management ability to manage personnel. Whatever the type of management structure, the founder of the enterprise and managing personnel should be able to involve employees and interest them. In this case, the leadership qualities of leadership play a decisive role. The latter should convey to the consciousness of workers that a change in approach is equal to a change in ideology. Only after the idea takes hold of people's consciousness can we say that the tool will be useful. The staff will agree to apply new methods, and management will reward them for their complaisance.

Situational approach

We have already considered the structure of management functions and the main approaches, and it will be useful to talk about the rest. Among them is a situational approach. He appeared in the sixties of the last century. His supporters suggest choosing management methods, taking into account environmental factors and the situation. The method is effective if it meets the circumstances.

To date, the situational approach is rarely used, since preference is given to a systematic and process approach.

Quantitative approach

As soon as the exact sciences developed, then this method arose. Even the exact date is known - 1950. Why exactly this kind of dependence? The fact is that the achievements of physics, mathematics and computer technology have become actively involved in management. This is due to the fact that it is much easier to construct virtual models for inventory management, resource allocation, strategic planning, maintenance, and more than to introduce a new structure each time, filling up cones. Nowadays, in its pure form, a quantitative approach is practically not found. As a rule, it is part of a process or system approach.

Types of Structures

The main types of management structures are distinguished depending on the nature of the relationship. It:

Functional.
Linear
Matrix.
Linear functional.
Multiple.
Divisional.

The organizational chart reflects the position of posts and units that actually exists. Connections, in turn, are also divided into categories:

Linear This is an administrative subordination.
Cooperative. Communication is traced between units of the same level.
Functional. There is no direct administrative subordination, but at the same time, relations are divided by field of activity.

The linear management structure is structured in such a way that each leader is in charge of subordinate units in any type of activity. Of the advantages, a fairly simple scheme, one-man management and profitability can be called. In this case, the minus is the requirement for the qualifications of managers, it should be high. Now such a structure is almost out of use.

The functional structure is noteworthy in that it has a close relationship between functional and administrative management. There is no principle of unity of command here, just like cooperation between departments. For this reason, the structure is also almost out of use.

Linear-functional structure is called a hierarchical step. In this case, line managers are one-man bosses, and functional organs help them. It is important that the line manager of the lower level is not subordinate to the functional managers, even if the latter are one level higher. The structure immediately gained popularity and was applied almost everywhere.

The divisional structure is structured so that branches are allocated either geographically or by occupation.

On the matrix structure, we can say that there can be several leaders over one performer. A similar scheme is often used in enterprises that work in several areas at once. Since the convenience of the structure is obvious, it is not surprising that it is the matrix structure that displaces the linear-functional one.

The multiple structure is special in that it combines different structures at different levels of control. An example is the situation when a branch management structure is adopted at the enterprise, and a matrix or linear-functional structure can be built in the divisions themselves. This structure is used to this day and does not lose its popularity.

As you already understood, in order to become a good manager, you need to study science in depth, including the structure of management goals. No matter how good a person is, without knowledge of theory it is unlikely that anything will work out. We can advise only one thing - learn the materiel.

Management structure: types, types and functions