Divisional organizational structure of the enterprise

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:42

The concept of organizational structure consists of two parts - the concepts of organization and structure. The latter, in turn, is the ordered elements of the system, the interconnected links of which form the system (mostly regardless of its goals and elements). However, the organization of these elements of the system also depends on the properties of the elements (and on the realized goals).

In the management system, the organizational structure has a skeletal form - this is the basis of any enterprise. It reflects the level of social and economic development of the managerial entity, forms of organization of production, etc.

Many differences in areas of activity, product characteristics, location and size of enterprises lead to a variety of organizational structures.

Types of governance structures

According to the class of management, adhocracy and hierarchical organizational structures are distinguished. The latter include:

1. Linear - each line of business reports to a higher manager. The advantages of such a structure are economy, simplicity, clearly established links between departments and a well-defined system of one-man command. But there are also significant drawbacks. The main one is not the most optimal level of adaptation to changes (since the management has a lot of responsibilities and duties, it must be highly qualified). At the moment, this structure is almost never used.
2. Functional - separate divisions are created that are responsible for a certain type of activity. The head of the functional unit has the right to give instructions to all links of the lower levels within his competence, as a result of which the principle of unity of command is violated. This structure is also not very popular.



3. Linear-functional - the main management activities, which are supported and serviced by functional units, are carried out by line managers. The advantages are the preservation of the principle of unity of command, the rapid implementation of instructions and decision-making. And the disadvantage can be called a not very noticeable line between the powers of functional and linear divisions.
4. Divisional organizational structure - autonomous divisions are allocated to manage the production of individual products, as well as some functions of the production process. In such a structure, the heads of the departments they lead are fully responsible foractivity results. The divisional organizational structure is based on three principles. This is the type of products produced, the regional principle and the focus on a particular customer.

There are four types of divisional organizational structure:

1) divisional-productive - focused on isolating specific types of products into a separate production;

2) divisional-regional - focused on creating independent divisions in different regions;

3) divisional organizational structure focused on the customer - it is supposed to allocate autonomous divisions;

4) mixed type.

It should be noted that there is no universal organizational structure, since for all management processes it is necessary to select suitable options that will meet the tasks set.