Designing organizational structures

Kuznetsov. Fundamentals of management

The parameters of the organizational structure have a significant impact on the effectiveness of the management system. Unreasonable, inflated the number of managerial employees reduces the efficiency of operation management. The unnecessary number of management levels increases the duration of the cycle flow of information and reduces the efficiency of managerial decision-making.
Thus, the structure of the subject of management is the form of organization of management processes that defines the important role played by the creation of regional structures in addressing the problem of increasing the efficiency of the control system.
The need to design new organizational structures arise in two cases:
1. For newly established organizations;
2. For existing organizations, when major changes in the external and internal environment require making fundamental changes in the organizational structure (for example, when the transition to the production of a new product with the change of the production structure).
Of the proposed methodical approaches to formation of organizational structures of the greatest practical widespread systemic-oriented approach. This approach with a focus on the outputs of the system requires that the governance structure did not reflect a set of prevailing functions and meet the objectives of the system.
The system-oriented approach is the most promising from the standpoint of requirements for organisational management and, in particular, the requirements of individualization. Its peculiarity consists in the fact that the design is "from". The main advantage of the approach lies in the possibility of formation of such organizational structure, which in the maximum degree would correspond to the production conditions. This means that organization structure should be such as to ensure its strategic goal.
In accordance with this approach the organization and content of the process of improving governance structures consists of three phases:
- pre-project preparation, consisting in the study and analysis of the current organizational structure, identify its weaknesses and identify ways of their elimination;
- designing of organizational structure;
- project implementation organizational structure.
The stages of the design of organizational structures. According to the classical theory of organization, management structure should be developed from the top down in this order:
1. Organization in the horizontal plane is divided into blocks in accordance with the main directions of activities to implement the strategy, which ultimately defines the structure. The division of labor in the horizontal plane implies the provision of clear interaction, cooperation and coordination of allocated blocks. In parallel with the division of labor based on structural units in the horizontal plane is necessary to establish what activities will be performed in linear units, and some staff.
2. With the problem of rational division of labor for the blocks is very closely related to the problem of efficient ratio of centralization and decentralization, line of authority in a variety of positions, delegation of authority to lower management levels. Centralization of important decisions at the highest management levels necessary to achieve the unity of action of all departments of the organization towards strategic goals (e.g., implementation of common economic, social, scientific-technical policy, etc.). The objective of the integrated structural units may be subjected to decomposition, i.e. broken into more specific objectives, the implementation of which creates smaller structural units.
3. Within the structural blocks are formed of the task-function, homogeneous on the orientation assigned to specific performers as duties.
4. Internal and external environment are constantly in development, in dynamics, changing plans and guidelines of the organization. Hence the need for periodic reorganization of the management structure and bring it to an adequate condition in accordance with changes in the external and internal environment.
5. Quality solutions to many problems arising in the design of organizational structures, determined by experience, intuition and other subjective characteristics of the professionals.
It should be noted that the process of improving the organizational structure — the process is iterative, providing the progress at some stage the possibility of refinement of design decisions taken at the previous stages.