The linear structure of company management can be attributed to the simplest way to build an organizational system that embodies the principle of centralism. The leader has all kinds of powers, full power and the sole exercise of leadership. But then the boss will be responsible for all the results of corporate activities.
Each subordinate has only one single leader, but each head has several subordinates. This will depend on the organization’s manageability standards. That is why the development of the enterprise leads to an increase in the number of levels in the management of the company.
The linear management structure is formed in accordance with the production attribute, taking into account the degree of concentration of production, technological features, the range of services or products. A similar system has both positive and negative qualities.
The linear control structure has the following advantages:
- efficiency in making and implementing decisions;
- the presence of relative simplicity in the performance of managerial functions;
- There is a very clear responsibility.
But there are a large number of disadvantages.
Firstly, the linear structure of enterprise management has a disconnected horizontal connections in enterprise systems.
Secondly, the system has a large number of contacts with employees. This will create a permanent information overload.
Thirdly, in the event that the number of managerial levels increases, the process of making and implementing decisions lengthens. Since their execution occurs "from top to bottom", and sometimes "spreads" along horizontal contacts.
Fourth, an increase in the number of basic levels in management is gradually formed when the organization grows.
Fifth, the linear structure of the organization has a very rigid system, the change of which is impossible.
Given the pros and cons in building such a system, we can distinguish the following areas of its application:
1. The linear management structure will be effective in enterprises with a staff of three hundred to five hundred people.
2. The organization must necessarily have a high level of subject and technological specialization (for example, metalworking, assembly, the provision of any services, etc.).
3. In enterprises of regional industry. We are talking about the manufacture of products from local raw materials, the production of consumer goods and so on.
As a result, in practice, such types of linear structural units are gradually being formed.
Firstly, a functional system in which structural departments and units will be grouped in accordance with the functions performed.
Secondly, the process model. During its implementation, each unit is formed by executable processes.
Thirdly, the project system in which each structural department will be grouped in accordance with the tasks, stages and problems.
Fourth, the product model. During its implementation, structural units will be formed according to the products of manufacture.
Fifth, a counterparty system that focuses on the client, contractor, supplier. Each structural unit will be grouped in accordance with counterparties.
Such a division is, of course, conditional and variable. But, in any case, the linear management structure is a complex system that develops in accordance with its specific laws, principles and laws.