The functional organizational structure of management is such a scheme of work of governing bodies in which each of them is prescribed to perform a certain range of technological, production, design, financial or information functions. Production units subordinate to a functional body are required to comply with all its instructions.
The most common type of control structure is a linear functional organizational structure. This management scheme includes linear units that carry out the main work in the organization, as well as functional service units. Linear links are involved in decision-making at their own level, while departments help the manager to make and develop decisions, as well as inform him.
Linear Functional Organizational Structure: Description
This management scheme is based on the mine construction method, in which the management process is specialized in functional subsystems (production, marketing, finance, development and research, personnel, etc.). Each subsystem forms its own hierarchy, which permeates the entire organization from top to bottom. Evaluation of the activities of each service is carried out through indicators that characterize its fulfillment of its tasks. The entire system of employee incentives and motivation is being built accordingly. The final result (the quality and overall performance of the enterprise as a whole) goes to a secondary plan, since it is believed that all departments work to achieve it.
Linear functional organizational structure: disadvantages and advantages
The positive aspects are the clarity of the system of interaction between the units, unity of command (the head takes control of the general management), delineation of responsibilities (everyone knows what they are responsible for), the possibility of quick reaction of executive units to instructions received from above.
The lack of structure is the lack of links that develop a common work strategy. Leaders of almost all levels primarily solve operational problems, not strategic issues. There are prerequisites for shifting responsibility and red tape in solving problems that require the interaction of several departments. Enterprise management has poor flexibility and does not adapt well to change. The organization and units have different criteria for evaluating the effectiveness and quality of work. The current tendency to formally evaluate these indicators usually leads to an atmosphere of disunity and fear.
The disadvantages of management in this structure are a large number of intermediate links that are located between employees and the manager making decisions. Top-level managers are subject to overload. The relationship between work results and qualifications, business and personal qualities of senior management is increasing.
Thus, we can conclude that in modern conditions the linear-functional organizational structure has more disadvantages than advantages. With this system of organization it is difficult to achieve high-quality work of the enterprise.
The disadvantages of the linear scheme is designed to eliminate the linear-staff organizational structure. It allows you to eliminate the main drawback, which is associated with the lack of links intended for strategic planning. This structure provides for the reduction of the workload of senior managers, there is the opportunity to attract external experts and consultants. However, the distribution of responsibilities remains unclear.