The basic principles of organizational structures
Kuznetsov. Fundamentals of management
The General trend in the improvement of organizational structures is the need of the transition from linear-functional to divisional management structures. Divisional structure allows to decentralize operational management decision to concentrate the top tier on strategic planning and management.
Decentralization is being implemented gradually with the successive transfer of certain functions to the lowest level of management.
Any restructuring of the management structure must be assessed primarily from the point of view of achieving its goals. A normally growing economy, the reorganization aims to through improved to increase the efficiency of the organization. It should be borne in mind that the main criterion of organizational effectiveness is the degree of achievement of the corporate goals under the given constraints on resources and time. The General criterion of effectiveness is the dynamics of the profit rate, the acceleration of technological development of production, the ability to respond quickly to changes in demand and in accordance with this, to reconfigure the production, productivity growth, the ability of the production control system to Orient the facility to its full use of available resources.
In the crisis period there is a change in the management structure aimed at creating conditions for the survival of the organization due to more rational use of resources, reduced costs and more flexible to adapt to the demands of the external environment. But regardless of the reasons for restructuring, it must pursue the goal of empowerment at the lower levels of the hierarchy for the management and development of production and economic independence .
The task of designing and restructuring the organizational structure is complex and difficult programmable. Such problems are solved on the basis of a combination of scientific methods with the subjective activity of specialists. Therefore, the design of organizational structures is very important is the observance of the rules (principles) of their construction. The main principles of creation of effective organizational structures include:
1. Structural units should be targeted at the goods market or a buyer, and not functions;
2. A basic building block of any structure should be the target group of professionals and teams, not functions and departments;
3. You need to focus on the minimum number of levels of management and wide area control;
4. The associativity entities on goals, solve problems and tasks;
5. Each employee must be responsible and have the ability to take the initiative.
The most important factor influencing the choice of a type of organizational management structure and its formation is the norm of manageability (control range, scope control).
The norm of controllability is called a valid number of workers, subordinate to one head.
An excessive increase in the number of subordinates leads to an increase in the management responsibilities of the head, which weakens the control over work of subordinates, difficult detection of errors in work, etc. Excessive contraction of the norm of the control is the cause of the increase in the number of managerial levels, and centralization of power, increasing administrative costs and growth problems as a result of weakening of the linkages between the top and bottom level of the pyramid of the organizational management structure.
To determine the span of control use mostly two approaches:
1. Experimental statistics based on the method of analogies. Can be done by comparing the planned staffing levels of the analyzed structure with a staff of similar structures, carrying out a comparable amount of work, but having a smaller state. This method is simple, does not require much cost and labor is most prevalent. It defines the model States similar to the advanced structures. At the same time, such technique is not, strictly speaking, be attributed to scientific methods. Therefore, to develop science-based, advanced structures applied analytical methods.
2. Analytical methods are based primarily based on such factors as the nature of work, working time, volume of information, number of relationships.
There are three types of work, depending on its nature:
- creative (heuristic), which consists in the elaboration and adoption of decisions;
- administration consisting of administrative, coordination and monitoring and evaluation operations;
performance (statement), consisting in the performance of work under service regulations.
The amount of work performed by the staff, due to the nature of his work it is not always possible to Express in normo-hours.
The complexity of the work of individual professionals will depend on what proportion of the total volume of their performance is a particular kind of work. The complexity and diversity of the workforce determines the complexity of its quantification. Creative work in this respect can be defined as the least measurable, it is impossible to Express, for example, in normo-hours. Administrative work also fits the category of difficult labour, it may include separate operations, measurable, but the weight of these operations is very slight. Performing the work has a definite quantitative expression, and the costs can be measured in normo-hours.
The valuation of complex work can be carried out as follows:
- when rationing labor associated with the production of judgement, analysis and decision-making, it is advisable to programmirovat activities of the relevant category of personnel, documentation, cards, correspondence, reports, alternatives, participation in meetings, business conversations based on the experience, titles, interest of performers;
- in assessing the work of artists, not having a routine character, often, as experience shows, the use of which is manifested after some time, certain schemes of work, stamps, sequence of actions and other elements can be formalized.
Considering the psychological resistance of the employees of creative work possible regulation of their work, it is useful to show them "delicate" approach and, in particular, to try to connect them to the process of normalization.
In the normalization of the working time method is used fotohronometra observations. It is especially useful in the absence of norms and standards for the cost. The advantage of this method is the possibility of establishing normative number of staff taking into account the specific characteristics of the analyzed structure. However:
- the analysis results reflect time only in the moment of observation;
- to obtain reliable data requires a significant expenditure of time and money;
- it is not excluded a subjective approach.
The definition of span of control measurement of the volume of information is carried out on the basis of statistical tests or the so-called Monte Carlo.
The whole mass of documented information in and out of her, hemmed in the respective cases are numbered and fully, can be in the form of a square divided into parts of equal area, which corresponds to the separation of the entire mass of information into separate parts relating to particular job functions. Getting any official document in any part is possible to define a random address selection storage of this document (case number and number of sheet in this case). Knowing the total number of sheets of all documents and the number made random samples, it is easy to see and the number of sheets held during the year for each proprietary function. Knowing the average amount of information that can process a single performer on the corresponding utility functions, we can determine the required number of personnel for this service functions.
This method is applicable only to determine the normative number of personnel associated with the processing of information, and its implementation requires significant investment of time. Its accuracy depends on the number of produced samples.
French mathematician and management consultant of Lithuanian origin V. Racunas in 1933 argued that the factor that determines the standard of handling is the number of controlled relationships, relationships in the organization. He noted that there are three kinds of relations: relationship Manager with individual employees, the overall relationship, the relationship between subordinates.
Mathematical analysis of potential interactions, with the norm of manageability made by Gracanica shows that, first, in the interaction of leader and staff there are numerous complex social processes, and, secondly, the drastic process of increasing the number and complexity of these processes on each slave. Fortunately, in practice this does not occur, but the findings of Gracanica, serve as a warning against excessive excess in the increase in the number of subordinates or talking about the need to reduce the number of communications primarily through the provision of greater autonomy to subordinates.
In practical activities of enterprises number of employees is not fixed. It varies within the enterprise, depending on managerial levels and the number of heads. The number of subordinates depends on many factors affecting the optimal span of control associated with the specific conditions of the enterprise.
American Council National industrial conference, for example, offers the following list of factors that should be taken into account when determining the optimal number of subordinates:
1. The level of competence of supervisor and subordinate.
2. The intensity of interaction between groups or individual employees.
3. The extent to which the head performs non-managerial nature and the need for time for contacts
with other people and organizational units.
4. Similarities or differences in activities of subordinates.
5. The breadth of new perspectives in led unit.
6. The prevalence of standardized procedures within the organization.
7. The degree of physical differences in activities.
Determining the number of subordinates, i.e., span of control, is of great importance for the formation of organizational structure of management, as based on this is determined by the number of managerial levels, administrative workers, and managers.
From a number of publications it is known that in order for the top-level Manager was not overloaded and had the opportunity to delve into the Affairs of subordinate units and also to take up challenging issues that the average span of control should be 3-6 people.
Span of control based on the level of councils - 5 tion and the type of production.
The authors intersectoral methodological recommendations for improving organizational structures, recommend the following values of span of control:
for heads of organizations and their first deputies — not more than 10-12 people (units);
for functional departments — at least 7-10 people;
- functional for office — at least 4-6 people;
- design and technological departments — 15-20 persons;
for design and technological Bureau — 7-10 people. Deputy heads of structural units are introduced,
as a rule, in excess of the span of control is 1.5 times.
It must be emphasized again that the determination of the quantitative normal values of control in each organization should be based on the analysis of all the factors affecting it, taking into account sectoral specifics and features of this production.
Unfortunately, in practice the construction of functional structures, the recommendations of scientists are often ignored, leading to over loading of line managers. The introduction of span of control for line managers:
- creates a scientific base for the proper planning of their numbers;
- creates equal tensions in their working conditions;
- allows to reveal reserves of their numbers;
- provides a rational handling staff.