Types of organisational structures of enterprise management

Management of the Company

In modern organizational forms of management of domestic and foreign enterprises (firms) are reflected all kinds of entities that have historically formed the main ones are linear and functional.
On single line and functional structures are created and are combined (mixed) structures such as linear-functional, divisional and matrix.
Linear structure of management is built on the basis of the following principles: unity of command, line management responsibility for the outcomes of the work unit; gradation control; ensuring an optimal balance between centralization and decentralization; optimization of the number of subordinates one supervisor.

Each employee shall be subordinate and accountable to only one supervisor and is associated with vishestoyachie organization only through him. This type of structure is characterized by simplicity, clarity and definition of the relationships between units and employees, efficiency of interaction.
The lack of linear structure of management is that the Manager must be flexible, highly skilled specialist, capable of solving any questions of subordinate units. So pure linear structure can only be used for simple content management activities in small companies or separate divisions.
Schematic diagram of the functional structure of enterprise management

The basic principles of the functional structure of management are: 1) the set of functions should cover all functions of management; 2) organization of functional units should match the aims and contents of activities of the subsidiary; 3) functional management structure needs a clear differentiation of the units; 4) service or specialists that perform a specific function, should not only be vysokokonkurentnyj and have certain powers, but also to be responsible for the completeness and quality of the work they perform.
Functional management structure has some significant drawbacks: 1) in the control system often appears a large amount of information (sometimes contradictory); 2) problems of selection and matching of instructions received from upper units to one contractor; 3) increasing the number of functional services, which leads to reduced control performance.
The functional management structure is mainly used in medium size and number of employees of enterprises and research organizations.

Linear-functional structure combines the advantages of linear and functional. In this structure, the linear guide on each level of management, created specialized units, which have certain rights in relation to the subordinate units. Line managers coordinate the activities of functional departments, producing solutions for subordinate units.

However, they are based mainly on administrative influence, orders and instructions.
Functional service manage line functional subordination using instructions, rules, recommendations, standards and regulations. While the lower linear services should perceive their instructions as required.
Thus, the linearly-functional structure has a hierarchical structure, where different levels of management are horizontally and degrees vertically.
The disadvantage of this structure is the fascination with functional services direct guidelines and orders, to increase their number. In addition, frequent technological changes, updating the nomenclature of products (services) use this structure stretches the timing of the preparation and adoption of management decisions, ensure coherence in the work of the functional units. Therefore, for enterprises with a wide range of products (services) that are rapidly changing consumers, as well as international organizations, are now widely used divisional and matrix structure.

A divisional organizational structure of management makes use of large integrated enterprises with a significant number of industrial and commercial offices, which operate in a dynamic environment.

Project teams are formed of experts are permanent formal departments. However, they only temporarily subordinated to the project Manager. After completion of the project return to their functional units. The project Manager acts as a line Manager in relation to the specialists of the project team.
At the same time he is the functional Manager in relation to industrial, commercial departments, ensure the implementation of the project.
The main advantage of matrix organizational structures is their extremely high flexibility and focus on innovation. Disadvantages of matrix structures is that they increase the number of administrative staff, increasing the number of ties between employees of divisions, conflicts often arise due to non-recognition of the principle of unity of command in the conditions to a highly dynamic environment and provide services to a limited life cycle. For example, the matrix organizational structure are widely used in large foreign firms, primarily aerospace, autobuild, chemical, electronic, pharmaceutical, where one has to quickly solve many problems.
Today, the matrix organizational structure implemented and used by such world-known U.S. companies, like General electric, "Hanwell", "American canal", "Texas instrument", "ZM", the Anglo-Dutch company "Unilever", etc.
Further improvement of organizational structures of management contributes to improving the efficiency of business and operational challenges in front of them.