Each entrepreneur, creating a firm, should think about what kind of organizational structure will be inherent in his enterprise. It should be borne in mind that each employee must understand in which department he works, what his tasks are and who his leader is. And the entrepreneur must monitor the results of the work of not each employee, but for those who are responsible for this or that work.
The organizational structure of management is the composition, subordination and interconnection of different departments, as well as individual officials who perform the management functions assigned to them.
The management structure consists of links and steps. A link is a separate subdivision whose functions are strictly defined and limited. A step is a set of links that are on the same level in the management hierarchy.
Organizational structuresthere are several types. The subject of today's discussion is the linear-functional structure.
Among the advantages of such a system are the following:
- professional and business specializations are stimulated;
- the responsibility of the head for the final result of managing the organization increases;
- increases the effectiveness of the workforce of various types;
- conditions and opportunities for career growth are created;
- not very difficult control of the activities of employees of all departments.
Linear-functional structure has the following disadvantages:
- the head of the enterprise is fully responsible for making a profit;
- coordination between departments becomes more complex;
- the process of making and implementing decisions is slowing down;
- there is no flexibility in the structure, since the basis of functioning is a set of various rules and principles.
Linear-functional management structure is a mixture of linear and functional systems, which has absorbed the advantages of the first and second. It is formed according to the chess principle of specialization and construction in the management process. The linear-functional structure of the enterprise is formed by the types of activities where the divisions of the enterprise are created. And the functional units are divided into even smaller ones that perform a certain circletasks.
The linear-functional management structure is currently the most common and used by small and medium-sized enterprises. Basically, such firms are engaged in the production of a limited range of products and operate under stable external conditions. Large organizations use a divisional approach to management.
Linear-functional structure is based on backbone connections. Those here are vertical, among which there are linear (or basic) and functional (or additional). Through the former, subordinates are managed. The leader determines what tasks will be solved and by whom specifically. Through the functional units of the highest level, they give instructions to the lower ones.
