Types of organisational structures

Kuznetsov. Fundamentals of management

In real control systems is used a great variety of organizational structures. But in this diversity there are common sustainable patterns of their formation, which lead to all the existing organizational structure to a relatively small number of varieties.
Functional organizational structure. It is characterized by the establishment of structural units, each of which has its own clearly defined, specific task and responsibilities. Specific characteristics and features of the activities of a unit correspond to the most important activities of the entire organization.
In the formation of organizational structure the organization is divided into functional units — the departments of production, marketing and Finance. In turn, if necessary, these divisions are subdivided into smaller functional units.
The advantages of the functional structure of the organization usually include:
1. Fostering business and professional specializations;
2. Reducing duplication of effort and consumption of material ' resources in the functional areas;
3. Improved coordination across functional areas.
However, this structure is not without disadvantages and it is primarily that the division may be interested in the implementation of their local goals and objectives to a greater extent than the whole organization. And another important negative point is that in a large organization with such a structure, the chain of command from the head to the assignee becomes too long, which hinders communication. Therefore, a similar structure should be used in organisations: a) producing a relatively limited range of products; b) operating in stable external conditions, and C) functioning under conditions of routine administrative problems.
The main direction of restructuring of the organizational structures in the Western firms is the transition from the functional circuits to the structures, based on the allocation of large-scale Autonomous production and business units and their respective levels of management, i.e. divisional structures.
Divisional structure allows the organization to focus on the particular product, customer or region, the same attention as a small organization that produces a single product or focused on a single consumer or operating in the same region that allows you to quickly adapt to a changing external environment. And another positive point is to improve communications.
However, a possible drawback is the increase in costs due to duplication of the same functions in the units.

Most firms have moved to divisional structures in an evolutionary way, i.e. they had no distinct reason for departing from the functional control schemes.

However, the uncertainty of external factors in-house development requires a transition to adaptive forms of organization, characterized by the absence of bureaucratic regulation of the activities of the management bodies, the use of project and matrix structures. The uncertainty of external factors and rapid changes lead to the fact that the activities of managers rarely repeat the same work, it becomes difficult to regulate the various functions. Therefore, in 80-e years the tendency to the creation of the provisional institutions of control, and centralization of critical functions at the top management level of the companies, manifested in the formation of adaptive organizational structures, and primarily, project and matrix organization.

Project organization is a temporary structure created to solve a specific problem. The gist of it is that in one team combined the most skilled employees of the organization to implement a complex project, that is, the so-called principle of "brainstorming". Upon completion of the project, such an organization, generally budding. An example of such organizations can serve to develop programmes of transition to the market, carried out in 1991 by a team headed by Yavlinsky G. A. — 500 days and the team headed by S. S. Shatalin the concept and the program "Transition to market". The main advantage of such an organization that they focus all efforts on the solution of one problem.
Matrix organization is characterized by the fact that the project team members are accountable as project Manager and heads of functional divisions in which they work constantly. The matrix structure allows more flexibility and more coordination than the functional and divisional structures, that is, it is better and responds faster to changes in the external environment. However, the most significant disadvantage of the matrix structure is its complexity.
A change in the strategy of firms is also an important reason for their transition to new forms of organizational structures. Organic elements of the strategy is an increase in the size of the company and expanding its production and commercial operations, diversification of production, the intensive penetration of foreign markets.
Western experts point to a strong correlation between firm size and organizational structure of management. The expansion of company size, the complexity of the internal interconnections create conditions, and determine the need for adoption of integrated solutions, aimed at restructuring the organization of corporate management, the increase in firm size leads to a deepening of structural differentiation (branches. management levels, organizational units). In turn, this leads to increased administrative costs, and costs associated with coordination, but does not reduce the advantage of homogeneity of large firms, due to the fact that these firms are controlled from a single center. However, the structural differentiation characteristic of large firms, requires the use of indirect (economic) methods of management and coordination of activities of various organizational units.
Among the main objectives of the large and medium-sized firms in the restructuring of organizational structures are:
1. The allocation of basic, clearly defined areas of responsibility in the management of specific objects and the consequent improvement of management processes, as well as unloading of work parts and organs of the highest level management;
2. Transition to the use of control systems based on the specific results of the activities of major independent productions — the business units of firms;
3. The focus of the links and controls on the market;
4. Increasing the responsibility of employees for the reduction of production costs of products and services;
5. Improvement of motivation of employees.
The most important means of control is inherent in almost all organizational structures of management, and especially organizational structures of large organizations are committees or commissions. The Committee is one of the forms of separation of administrative work, which is characterized by a mutual effort.
Committee members carry out a particular management function, are responsible for it and have certain powers. The undoubted benefits of the committees refers to collective management, coordination and liaison, exchange of information and ideas, etc.
Committees are formed to address any permanent and temporary tasks. Listed below are the principal committees:
Advisory committees in the field of management;
Advisory committees in the Executive sphere;
- functional committees (like functional units);
- coordinating committees;
- ad hoc committees created to implement certain goals, for example, the Committee of professional development for its employees.
Review of the experience of construction of organizational structures shows that the formation of governing units is significantly influenced by the external and internal environment of the organization. This is the main reason of impossibility of application of the common model management structure for all organizations. Moreover, this impossibility is due to the specific characteristics of a particular organization. The creation of modern and effective management structure should be based on scientific methods and principles of construction of organizational structures.