Requirements for organizational structure

Kuznetsov. Fundamentals of management

When designing organizational structures to focus on the following basic requirements:
1. Focus on achievement of goals. Because goals are the main characteristics of any organization, management structure should contribute to their achievement. This is achieved through the establishment of rights and the necessary responsibility of each management level for achieving the set tasks, balance tasks are links of the same level of control in relation to the objectives of higher-level, rational division of labor and cooperation between units and levels of management and their interaction.
2. The prospect is reflected in the fact that the management system should not only be addressed the operational issues; work on defining strategies related to future production development and management. With this aim, the organizational structure necessary to provide a unit perspective, strategic management, separating it from the block of operational and current management.
3. The ability to develop. The necessity of development of organizational structure is due to the tendency of constant improvement of production, changes in the external environment, emerging disparities in the control system. In these conditions the organizational structure should be elastic enough and capable of perception of corrective actions. In practice, this can be achieved by creating a temporary target groups (departments), services, development, etc.
4. The reconciliation of interests. Due to the profound division of labour, which led to the support of the divisions, there is a multiplicity and inconsistency of interests of participants of process of management. For example, the interests of the employees of the mechanical workshop not coincide with the interests of the workers of the Assembly shop. First, in an effort to increase efficiency of shop, are interested in the reduction in the range and increasing the size of the batch, reducing the number of changeovers, etc., which leads to an increase of work in progress, of its incompleteness. Workers of Assembly production are interested in the timely provision of all necessary assemblies. Moreover, the flow of parts and Assembly units of components should be carried out in the required quantities as needed and without undue reserves, which requires significant warehouse space and additional costs.
Contradictions can be not only between departments but also within one group, between the supplier and the consumer of the products, etc.
Thus, in the organizational structure should be a mechanism to reconcile the contradictions, establish a reasonable compromise.
This can be achieved by the introduction into the structure of legal and social services to an appropriate professional, the organization of councils workforce.
5. Individualization. Every enterprise is unique in the sense that it has features, due to the composition of personnel, equipment, formal and informal managerial links and many other features. Therefore, the development and implementation of measures to improve the organizational structure should flow from its features. In this regard, any kind of typical recommendations may only be used as indicative data.
6. Efficiency. The organizational structure should facilitate the most efficient implementation of management processes, increase productivity of managerial employees as they perform their necessary functions. Efficiency can be achieved through a variety of activities, including the creation of divisions, whose function would include conducting analysis of the existing organizational structure, functional and hierarchical division of labor, organization, management processes, etc.