The organization

Kuznetsov. Fundamentals of management

Implementation of plans requires the organization that provides the next stage of management. Under the organization refers to the process of:
- definition of rational forms of division of labor;
- distribution of work among employees, employee groups and departments;
- the development of the structure of management bodies;
- regulation functions, subfunctions, works and operations;
- establish rights and duties of the management bodies and officials;
- selection and placement of personnel.
the function can be considered in two aspects: first, as the process of creating the system, and secondly, as the process of its improvement, streamlining.
The organization works — it is a function that must be exercised by all leaders — regardless of their rank. However, although the meaning of this concept consists in delegation of the rights and duties of division of labour horizontally and vertically, to decide about the structure of the organization as a whole is almost always taken by the senior management. The task of managers is to choose an organisational structure that best meets the goals and objectives of the organization allows her to interact effectively with the external environment, efficiently distributes and directs the efforts of its employees.
The structure of the organization cannot remain unchanged, because changing external and internal environment.
The traditional paradigm of organizational structure is the pyramid, consisting of three main levels.
However, in the theory and practice there are several proposals for alternative organizational structures.*
Future firm can resemble a kind of inverted pyramid — one in the base, a few people in the middle and most at the top. That is, the organizational structure looks like an inverted pyramid.
There will be less control of the upper echelon of the enterprises of posts and fewer workers due to automation, so the more of middle-level managers, that is, the organizational structure looks like a rhombus
The organizational structure of the future under the influence of computer technology may somewhat resemble a soccer ball, resting on the top of the bell. Inside of a soccer ball (in the upper echelons of the organization) will increase coordination problems, individual autonomy and collective decision-making.
Organizational structure "of a soccer ball on the bell" is mainly provided for a considerable reduction in the number of middle-level managers on the basis of computerization. It is possible that organizations will become larger, with more internal connections and more complexity, they will purchase different forms. International institutional linkages will tend to resemble the wheel, rather than traditional pyramid.
Can gain popularity and a new organizational concept. For example, "flexible pyramid", which is able to change and meet temporary working groups and special units. Specific types of organizational structures and methods of their construction will be discussed in the next section.
However, the General opinion of the experts with whom we should agree that the pyramid is still the best governance structure in a formal organization. Other forms will be used for experiment or demonstration basis, but the real structure is basically a pyramid. It is generally believed that the number of people employed in management by the end of the century will increase by about 10 — 11%, although the percentage relationship between the echelons of the organizational structure may change. Medium sized organizations will need managers stronger than the largest. In addition, the emergence of new firms leads to an increase in demand for managers. However, it is obvious, will apply to the practice of using a smaller number of governors to carry large responsibilities.
In any organization, along with there is formal and informal structure. The influence of informal structures on the organization's work often is crucial. Informal communication can be of various kinds: family ties, relationships based on common interests (e.g. sports); just a friendly communication on the basis of, for example, last joint Study, membership of a public organization, etc. Understanding of informal ties in organization is important because, firstly, informal relations, as a rule, across the entire formal structure;
second, many relations occur outside of work but affect the entire organization; and, third, an informal structure, according to experts, has a positive impact on the work of the organization, although there is, of course, there are certain dangers, which, in particular, was discovered by E. Mayo in it Houtornskogo experiments. The informal structure is a human behavioural aspect of management. Knowledge of this phenomenon will allow the Manager to understand the reasons for the failure of his plans, and with the greatest benefit to the use of the informal structure of the organization.
In the formation of organizational structures of particular importance is the question of how to divide the employees of the organization horizontally, i.e. to determine which tasks must address each structural unit. Another important task of building the organization is the division of work vertical. The decision on what level of the hierarchy structure needs to be taken important decisions belongs to senior management of the organization. This determines the form of the organizational structure and the effectiveness of management decisions.
The Manager should delegate to the subordinate at least a volume of reference, which required the latter to meet the objectives.
Organizations in which the senior management of the reserves the majority of the powers needed to make critical decisions, are called centralized. Decentralized organizations — these are organizations in which important decisions are carried out at the lower levels of management. For example, in highly decentralized organizations, managers of an average link have very large powers in specific areas.
To assess the level of centralization, you can use the following:
1. The number of decisions taken at lower levels of management. Than such decisions, the more decentralization.
2. The importance of decisions taken at lower levels. In a decentralized organization, managers of middle and lower level management can make decisions related to the formation of significant material and labour resources or a change in the direction of the organization.
3. The consequences of decisions taken at lower levels. It is believed that if the heads of lower and middle management can make decisions affecting more than one function, such organization appears to be decentralized.
4. The amount of control the work of subordinates. In a highly decentralized organization, the senior management seldom checks the daily decisions of subordinate leaders, trusting their expertise, and focuses only on the total results.
It should be borne in mind that in the departments the level of centralization may be different. However, the decentralized structure of any unit may not have absolute autonomy, meaning almost sovereignty. Central office to maintain the integrity of the organization shall as a minimum:
- to approve the objectives of each unit in accordance with the overall objectives of the organization;
- approve the organizational structure and candidates for key positions;
- the control of cash, patents and Finance.
The degree of decentralization is proportional to the level of functional interrelations of divisions of the company. A decentralized system allows you to unleash the "initiative from below". At the same time, the efficiency of structural links in this case is largely due to the competence of its leaders. Centralized system management helps to save from increasing the scale of production activities. However, this system requires a high level of coordination and control.
And there is a combined management structure of the firm. In this embodiment, each division is focused on profit and its activities is provided by decentralised management, but Central office provides a centralized coordination based on the General policy of the company.
Delegation of authority involves the division of responsibility which is the obligation to carry out certain activities with full responsibility for the effectiveness of their implementation. The distribution of responsibility must be established in the form of official regulations and instructions. This includes the definition of Manager functions, duties, powers and relationships. Centralization and decentralization have their advantages and disadvantages.
The main advantages of centralization and decentralization are as follows:
Advantages of centralization:
1. Centralization improves control and coordination of specialized independent functions, reduces quantity and scales of erroneous decisions made by less experienced leaders.
2. Strong centralized management allows to avoid a situation in which some departments of the organization grow and develop at the expense of others or the organization as a whole.
3. Centralized management allows for more effective and easy to use experience and knowledge of the personnel of the Central administrative body.
Advantages of decentralization:
1. To manage very large organizations centrally impossible due to the huge amount required for this information and, as a consequence, the complexity of the decision-making process.
2. Decentralization gives the right to make decisions the leader who is closest to the problem and therefore better than anyone knows her.
3. Decentralization encourages initiative and allows the individual to identify himself with the organization. In the decentralized approach, the largest unit of organization seems like its head is quite small, and it can fully understand its functioning, to fully control it and to feel a part of this unit. Such a leader can experience the same enthusiasm for its division, as an independent contractor in all its business.
4. Decentralization helps prepare the young leader for higher positions, presenting him the opportunity to make important decisions at the beginning of his career. This provides the influx of a organization of talented leaders. This assumes that talented leaders are not born but are in the process of acquiring experience. Because the timing of the promotion from the ordinary to the higher posts become shorter, decentralization helps to ensure that the ambitious and energetic young Manager stays with the firm and grow along with it.
Disadvantages of centralisation are that it closes the way of obtaining the benefits of decentralization and Vice versa. Each company is divided into a number of independently operating units. Between them there is a number of relationships. They are based on linear relations, i.e. relations between managers and subordinates, covering the company from top to bottom. These formal relations determined the subordination of each artist and the responsibility for coordination of work of all employees. On the linear relations holding on the principle of unity of command: each employee should be responsible to one head, although required to observe permanent or temporary instruction of others.
The specificity of the relations within the firm determines its overall structural design. Vary pyramidal (vertical) and flat (umbrella) organizational structure. Pyramidal structure requires a larger number of levels of coordination in relation to the number of workers. In flat structures with fewer levels, so the number of focal points less in relation to equal to the number of subordinates. The vertical system requires more communication up and down the guide line. Here, the main emphasis in achieving horizontal coordination is done on a vertical chain guide. It is possible to overload channels of communication, slow decision-making. This system little system. Flat structures are more effective under conditions of rapid change. They contribute to more creative solutions, provide a sensitive response to the environment. However, when the decisions are independent from each other, we need a communication network linking them together.
The issues related to defining the rules of control and, consequently, the number of hierarchy levels, described in more detail in the next paragraph.
It should be noted is that if you do not keep span of control at a low level, the user will be unable not only to perform the duties of coordination, but also to control the activities, to raise qualification and motivation of subordinates. Therefore, if the norm of controllability is too high, the line of authority needs to be Delegated and introduced additional levels of management to prevent the loss of coordination.