Organizational structure of an enterprise: types and diagrams. Features of choosing an organizational structure for enterprise management Organizational structures in which planning and distribution

3.3.2. Organizational Planning Structures

Participating in the planning process are:

Firstly, the top management of the organization;

Secondly, the planning team;

Thirdly, managers and specialists of departments.

The ideal, as already indicated, is a situation where all employees of the organization are involved in the discussion and drawing up of plans.

How are responsibilities distributed between participants? planned activities?

Top management is the architect of the planning process, determines its main phases and planning sequence.

Top management must make the planning process accessible and understandable to every employee of the organization, and it must be able to involve its employees in it as much as possible.

X– means the implementation of this stage (type) of planned activity.

Rice. 3.3 Sequence of planning activities in the organization

September

Types of planned activities

Last year status report

External assessment

Internal assessment

Strategic Goals

Gap Analysis

Defining an Alternative Strategy

Selecting a strategy and preparing the final plan

Preparation and release of annual plans and budgets

Rice. 3.4 Planning scheme in the organization

Another function of top management is to develop the firm's strategy and make strategic planning decisions. The company's management determines common goals its development and the main ways to achieve them. Strategy development requires top management to have analytical skills and big-picture thinking.

Middle and lower management, and specialists divisions are engaged in the development of operational plans. The responsibilities of specialists also include analyzing the internal and external environment of the organization and making forecasts. Department managers and staff members join together in evaluating alternative strategies proposed for the organization.

Participating in the planning process are:

firstly, the top management of the organization;

secondly, the planning team;

thirdly, managers and specialists of departments.

The ideal, as already indicated, is a situation where all employees of the organization are involved in the discussion and drawing up of plans.

How are responsibilities distributed among participants in planned activities?

Top management is the architect of the planning process and determines its main phases and planning sequence.

Top management must make the planning process accessible and understandable to every employee of the organization, and it must be able to involve its employees in it as much as possible.

Rice. 1.

Another function of top management is to develop the firm's strategy and make strategic planning decisions. The company's management determines the general goals of its development and the main ways to achieve them. Strategy development requires top management to have analytical skills and big-picture thinking.

Middle and lower management, as well as department specialists, are involved in the development of operational plans. The responsibilities of specialists also include analyzing the internal and external environment of the organization and making forecasts. Department managers and staff members join together in evaluating alternative strategies proposed for the organization.

IN last years in many large organizations functions strategic planning transferred to divisions, that is, decentralization of intra-company planning occurs. This process is carried out as follows.

The entire range of activities of the organization is divided into main segments - “strategic segmentation” occurs (the term was proposed by a well-known company specializing in the analysis and development of strategies, the Boston Consulting Group - BCG).

There is a redistribution of strategic powers in favor of segment managers.

The top administration remains responsible for the general direction of the organization's development: the placement and structure of capital investments, the total volume of production and profits. In addition, central management determines resource (mainly financial) restrictions on the activities of lower levels.

The planning service is being decentralized - the number of central departments is being reduced, and local planning departments are being created.

A strategic economic center (SHC) is being formed at the level of an individual unit. He develops and implements his own strategic plans. Examples of companies that have created SCC are the well-known American company General Electric, the English company Imperial Chemical Industries and some others.

Advantages of SCC:

SCC allows you to most accurately take into account business conditions at the level of individual large divisions, creates opportunities for more flexible adaptation of the division to consumers, to external environment generally;

within the framework of the SCC, the time for passing basic information is reduced and decision-making is accelerated;

the existence of the SHC makes possible wider participation of workers in the planning of their activities.

Disadvantages of SCC:

information overload of the company's top management is increasing sharply, since information is now generated simultaneously in several places;

there is a threat that the very strategy and tactics of the organization’s actions will be buried under an avalanche of planned activities in the SCC and central services of the company (excess planning);

There is a danger that corporate goals will be eroded and replaced by a multitude of uncoordinated divisional goals.

If for large firms a pronounced trend is the decentralization of planning activities, then small organizations, on the contrary, strive for greater centralization of planning, the creation and expansion of a central planning service.

The apparatus of planned workers at the enterprise operates in the form of an appropriate organizational structure , which establishes the required number of planning personnel and their distribution among the divisions of the management apparatus, determines the composition of planning bodies, regulates linear, functional and information connections between planners and departments, establishes the rights, duties and responsibilities of planners, determines the requirements for their professional level and so on.

Intra-company planning as an integral part of the enterprise management process may have the following organizational forms:

- centralized form of planning;
- decentralized form of planning.

According to these forms, a system of planning bodies of a specific economic entity is built.

In a company with centralized planning functions a special planning service is created under top management, for example a planning and control department. She reports directly to the director or deputy director, develops long-term and current plans and monitors the progress of their implementation.

Rice. 1.2

With a centralized planning system, it is easier to coordinate the work of interrelated departments of the company. However, with the expansion of the scale of its activities and the intensification of the diversification process, planning work from one center becomes impossible.

At decentralized form intra-company planning, characteristic of large organizations, planning work is carried out at three levels. At the senior management level, the company has a central planning service that develops only long-term plans. Each production department has its own planning department, which draws up a current plan for the complex of its enterprises. Each enterprise has a production planning and control department that deals with current technical, economic and operational scheduling planning.

Branch is a large production association, which includes enterprises of two levels. The first level is enterprises with a high degree of specialization that produce semi-finished products. They supply products to second-tier assembly plants where the final product is manufactured.

Each enterprise approaches the choice of organizational planning structure strictly individually. However, it is possible to identify a number of features that determine the design of the organizational structure of planning.

1. The organization of planned work largely depends on the size and type of enterprise.

Small company has a simple management structure, and, therefore, each employee must perform several functions.

Director(usually the main owner) performs the functions of setting strategic, current and operational planning, as well as organization of group activities, control, labor motivation. In addition, you often have to perform the functions of a marketing manager, promoting your product to the market and advertising it, as well as a personnel manager, etc.

Chief Accountant, in addition to their direct accounting responsibilities economic activity and maintaining a balance sheet, must also perform functions of analysis and planning of financial and economic activities related to cost savings, movement of financial flows, and efficient use of resources.

Production manager, As a rule, it combines its direct production functions with the supply of resources, sales of products, provision of production with equipment, tools, and recruitment.

In medium business the chief entrepreneur (or general director) already delegates the execution of certain planning functions to the relevant managers: marketing, financial and economic management, production, personnel management, etc. For work, professionals who are proficient in modern technology management, decision making and business. However, the functional management groups themselves are small in number.

IN big companies planning services range in size from one or two to 100 people. Large planning services include both professional planners and technical staff. To organize the work of large planning services, a position of administrator is required who coordinates the planning process: establishes the order and controls the preparation of planning documentation, organizes professional meetings, draws up and distributes the final documents of these meetings, etc. IN Lately In connection with the creation of central management centers in large divisions of organizations and the general trend towards decentralization of intra-company planning, the reduction of overly expanded central planning services to 20-25 people is becoming characteristic.

The apparatus that carries out intra-company planning, characteristic of domestic practice, includes functional units at various levels of enterprise management. The highest level of the planning system can be considered Board of Directors who makes decisions on the most important issues of strategy and tactics of the enterprise.

Functional planning services in many medium and large enterprises they are separated into independent divisions subordinate to the deputy director for economics and finance - planning and financial departments(as well as the commercial director - marketing department; technical director - Production Department) (Fig. 1.3 and Fig. 1.4).

Rice. 1.3

Rice. 1.4 Functions of the main subjects of planning at the enterprise

In domestic practice management of work on economic planning at an enterprise aimed at organizing rational economic activities, the identification and use of production reserves is carried out by the planning and economic department (PED). He also organizes a comprehensive economic analysis activities of the enterprise, takes part in the development of measures to accelerate the growth rate of labor productivity, efficient use of production capacities, material and labor resources, increasing production profitability. The most important tasks of the PEO are also the organization and improvement of in-production economic accounting, the development of prices for the products and services of the enterprise.

The economic planning department interacts with almost all divisions of the enterprise, as well as all main, auxiliary and service departments.

In the process of organizational planning, the organizational structure of the enterprise is formed, aimed at establishing clear relationships between its individual divisions: the number and size of workshops, their mutual subordination, the size and organizational structure of service and management divisions (marketing, material support, sales, etc.) are determined. as well as the administration.

In theory and practice, various types of organizational structures have been developed that can be used taking into account the characteristics of specific enterprises (Diagram 2.8).

The main characteristics of the organizational structure are: the number of management personnel by management functions, the number of line management personnel, the number of levels of the enterprise management system hierarchy, the number of structural links at each level, the degree of centralization of management.

The dominant factor influencing the value of these characteristics is the amount of work involved in enterprise management, which depends on the composition and content of management functions, the labor intensity and frequency of solving management problems.

Scheme 2.8. Types of Organizational Structures

Scheme 2.9. Linear-functional structure

Scheme 2.10. Divisional-functional structure

Scheme 2.11. Matrix structure

Advantages and disadvantages of organizational management structures

Structure	Advantages	Flaws
1	2	3
Linear	Unity and clarity of management Personal accountability of the performer to one person Everyone is responsible for completing the task (discipline) Stimulating the development of completeness	Increased information transit time In addition to their main duties, performers also perform “staff” work on accounting and control
Functional	Reduced information transit time Specialization of managers' activities Top management is less than in a linear structure	Possibility of receiving conflicting instructions Difficulty separating interrelated functions Difficulty of control Lack of management flexibility
Linear-functional	Expanding the ability to make competent decisions Reducing the time for solving technological production issues	Difficulty in regulating relations between line and functional managers
Divisional	Promotion independence and responsibility of departments in matters of maximizing profits and gaining market positions	Growth of the administrative apparatus Possibility of conflicts due to centralized distribution of resource goals
Adaptive	Quick adaptation to changes in the external environment Few rules and procedures Great opportunity for creativity	Levels of control blurred Uncertainty of goals and objectives Difficulty of control

To develop the organizational structure of an enterprise it is necessary:

Prepare constituent documents and internal regulations;

Determine the list of main and auxiliary units, their functions and the order of interaction between them;

Distribute responsibilities across the vertical management structure;

Describe the main managers - qualifications, experience, principles of remuneration, etc.;

Provide a description of the founders of the enterprise (owners)

list of persons and share of each in authorized capital and other data.

2.5. Financial plan and budget of the enterprise

To make a final decision on a business project, it is necessary to clearly define the investment and production costs, bearing in mind that the profitability of the project will ultimately depend on their size, structure and implementation schedule.

The investments and main elements of production costs identified in the previous sections of the plan are summarized in financially in order to calculate the total investment costs and determine the financial and economic profitability of the project.

When combining the amount of investment and production costs Special attention You should pay attention to the schedule for their implementation, since these deadlines have an impact on the cash flow during the implementation of the project and its rate of return. Planning of investments and production costs should be carried out on an annual basis, taking into account the results of cash flow analysis.

The total amount of investment costs for the implementation of a business project includes, first of all, the costs of forming fixed capital (investments), working capital and production costs. Moreover, fixed capital represents the funds necessary for the construction and equipping of the invested project, and working capital represents the funds necessary for the operation of the project (Table 2.17.).

Fixed capital consists of initial investments and capital costs for production preparation.

Total costs of a business project

Groups of costs (expenses, expenses)	Subgroups costs	Scroll costs	Composition of costs
1	2	3	4
1. Initial investment costs	1.1.Costs for basic facilities	Costs of investing in fixed capital	1. Cost land plot(purchase or improvements), preparation costs production site 2. Construction cost 3. Cost of purchased equipment and its installation 4. Other fixed assets, including costs for supply, packaging, transportation of products
		Prev production and after production costs	1. Preliminary costs for organizing production valuable papers(costs of company registration, including payment legal documents necessary for the organization of securities, as well as the costs of issuing shares, the costs of issuing prospectuses, preliminary advertising, distribution of shares, etc.) 2. Investments in preparatory work (costs for pre-investment studies, including preparation of feasibility studies, payment for consulting services for performing pre-investment studies) 3. Other costs ( wage and social benefits for personnel involved in production preparation), payment for business trips, preliminary costs

			marketing, creation of a supply network, construction of temporary structures, including offices and dormitories for workers, training costs, payment for patents and know-how, termination costs operation of the facility by the end of its life cycle, including clearing its land.
	1.2. Working capital expenses = A) - b) = = clean negotiable	a) Current assets	1. Inventories (production materials, spare parts, work in progress, finished goods) 2. Accounts receivable (the amount of debts owed to the company on commercial credit provided to customers by its goods) 3. Cash
		b) Accounts payable	The amount of debts that a company is obliged to pay under a commercial loan provided to it by suppliers of products (raw materials, materials, semi-finished products, equipment and financial loans)
2. Production costs	2.1. Factory costs	a) Material	Costs of raw materials, materials, semi-finished products, fuel, electricity (for production needs)
		b) Labor	Labor costs production personnel(salary, bonuses, payment overtime, social payments)
		c) Factory invoices	Repair costs for used and unused
			equipment, fuel and lighting costs, heating production premises, removal and disposal production waste, safety costs, sanitary and hygienic environmental costs, etc.
	2.2. Administrative and overhead costs		Salary administrative staff, payment for long-term consulting services, Overhead costs (lighting, heating, cleaning and repairs of premises administrative apparatus, payment for communications equipment, etc.)
	2.3. Depreciation costs		Depreciation deductions
	2.4. Financing costs		Rent payments Payment of penalties, fines, etc.
3. Sales costs (marketing costs)	3.1. Direct costs	A) Packaging and storage of finished products
		B) sales costs	Advertising, Payment of sales brokers, Commissions, etc.
		B) transport costs
	3.2. Indirect costs		Personnel compensation, Market research costs

Initial investments include costs for:

Preparation of land and enterprise site;

Buildings and civil structures;

Machinery and equipment, including auxiliary;

Certain acquired parts of fixed capital, such as industrial property rights.

In order to obtain the amount of the initial investment, a special form is drawn up (Table 2.18.).

Initial Investment

In addition to the initial investment, any

An entrepreneurial project entails some pre-production costs, which arise, for example, during the acquisition or formation of fixed capital. These costs consist of a number of items arising at various stages of drafting and implementing the project and include the following costs.

1. Preliminary expenses (arising during the registration and formation of a company) and expenses for issuing securities. The latter include the costs of preparing and issuing prospectuses, advertising, announcements through means mass media, commissions for placement of securities, brokerage transactions, processing of applications for shares and distribution of shares. Upfront costs also include fees for legal processing of loan applications, concluding agreements for the purchase of land, etc.

2. Expenses for preliminary research, including:

Expenses for pre-investment, market research, engineering and other studies (for example, a report on the design and development of a project) carried out in order to implement the project;

Remuneration to consultants for preparing research,

design and management of construction and installation works;

Other expenses.

3. Pre-production costs, which include:

Salaries, social security contributions and additional payments to personnel employed during the pre-production period;

Travel expenses;

Costs for preparatory structures such as dormitories for workers, temporary administrative premises, warehouses, etc.;

Training costs;

Payment of interest on loans during construction.

4. Commissioning and commissioning costs, including

remuneration for the management of start-up operations, salaries, social security contributions and additional payments for personnel involved in commissioning, cost

consumed production and auxiliary materials, costs of auxiliary and other means necessary for commissioning (Table 2.19.).

Capital expenditures (investments) at the stage of preparation for

production

Working capital means financial resources necessary for the operation of the facility in accordance with its production program. Working capital represents current working capital minus short-term liabilities, i.e. accounts receivable, inventory (raw materials, auxiliary materials, spare parts and small tools), work in progress and finished products and cash. Current liabilities consist primarily of bills to be paid (creditors), which do not accrue interest.

When calculating the need for working capital, it is necessary, first of all, to determine the minimum number of days covered by current assets and liabilities. Then the annual factory cost and production costs should be calculated, since these are the basis on which the value of some of the components of the current assets is calculated. Given that the need for working capital increases as the project gradually reaches full capacity, data on plant costs and production costs should be prepared for the commissioning and ramp-up periods.

The next step is to determine the turnover ratio components current assets and liabilities, which can be found by dividing 360 days by the number of days of minimum security. Subsequently, cost data for each item of current assets and liabilities is divided into the corresponding turnover ratios. Finally, by subtracting current liabilities from the sum of current assets, the amount of required net working capital for the various stages of production is obtained. At the same time it is determined required amount cash in the company's cash register.

Table 2.20.

Of particular importance is the calculation of the need for working capital at the stage of the feasibility study, since it forces the entrepreneur to think about the funds necessary to finance the operation of the project.

Thus, based on the amounts of pre-production costs, fixed investments and calculations of net working capital, it is possible to calculate the total need for financial resources (Table 2.21.).

Table 2.21.

Total need for financial resources

The calculation of working capital requirements for each step of the billing period is carried out using the following formulas (for simplicity, the step number is omitted from them).

Current assets by item

4. Settlements with the budget and extra-budgetary funds represent the sum of liabilities by item: salary accruals; payments for VAT contributed to the budget; income tax payments; payments for other taxes (duties).

For each of the taxes (fees, charges), the corresponding amount of current liabilities (PNi) is determined by the formula:

VN - the amount of tax (fee) for the quarter;

PV - frequency of payment of this tax (fee) in days.

The total amount of current liabilities under the item “settlements with budgets and extra-budgetary funds” is determined by summing up the calculated values for all types of taxes (fees, charges).

5. Calculations for credits, loans, rent and leasing are the sum of current liabilities for each loan (loan, lease, leasing agreement).

The current liabilities of the PC for each loan (loan, lease agreement, leasing agreement) are determined by the formula:

PRk - the amount of interest payment on a loan (loan), rent or lease payment for the quarter;

PVk - frequency of this payment in days.

The total value of current liabilities in the line “settlements for loans, borrowings, rent and leasing” is determined by summing the calculated values for all loans (loans, rental or leasing agreements).

As already indicated, individual components of working capital may not be taken into account if the specialist performing the calculation considers that they should not be taken into account and provides reasons for his opinion.

The calculation results are presented in the form of table 2.22.

Calculation of working capital requirements

Structure of working capital for calculating commercial efficiency	Calculation step number
	1	2	N
Assets

Unfinished production
Finished products
Accounts receivable
Advances to suppliers for services
Reserve Money

Liabilities


Payroll calculations


Working capital =(page 7-12)
Increase in working capital

Determination of working capital requirements when determining the efficiency of share capital

When calculating the efficiency of equity capital, the need for working capital is determined in the same way as when calculating the commercial efficiency of a project with the following differences:

When calculating current assets, the line “accounts receivable” is changed due to the fact that all components are taken into account, including the value of payments for rent, leasing and loans;

A new line is added to current liabilities - “settlements for loans, borrowings, rent and leasing.” Accordingly, the table for calculating the increase in the need for working capital in this case looks like (see table 2.23.).

Calculation of working capital requirements when determining the efficiency of share capital

Structure of working capital for calculating the efficiency of share capital	Nomei		uh step
	1	2		N
Assets
Raw materials, materials, components, etc.
Unfinished production
Finished products
Accounts receivable
Advances to suppliers for services
Cash reserve
Total: assets amount (pages 1-6)
Liabilities
Payments for goods, works and services
Advance payments (prepayment)
Payroll calculations
Settlements with the budget and extra-budgetary funds
Calculations for loans and borrowings
Total: liabilities (total p. 8-11)
Working capital =(page 7-13)
Increase in working capital

To implement an entrepreneurial project, the business plan, depending on the specific conditions, may provide for various sources of financing (Diagram 2.12.).

Scheme 2.12. Sources of project financing

For financial calculations, a special statement is used - the cash flow table (Table 2.24);

A cash flow model is developed to match the timing of the inflow of funds (sales and other income) with the outflow of funds for investments, production costs and other expenses.

Revenue from product sales (Table 2.24., p. 1) is determined on the basis of forecast sales volumes by year and forecast prices per unit of production. Sales volume forecast - result marketing research, expected increase in production and production capacity enterprises.

Cash flow (cash flow model)

Table 2.24.

Indicators	Amount by year (quarter), (rub.)
	0				1				2	-	N
	quarter				quarter
	1	2	3	4	1	2	3	4
1. Sales revenue 2. Costs, total, including: 2.1. Depreciation deductions 2.2. Interest payment 3. Profit from sales 4. Income tax 5. Net income from sales 6. Net cash flow, total: (line 6.1.+line 6.2.+(-)line 6.3.+(-)line 6.4. - line 6.5.- line 6.6.). 6.1. Net sales income 6.2. Depreciation deductions 6.3. Growth (repayment) of debt 6.4. Funds from the sale (purchase) of fixed assets 6.5. Investments 6.6. Increase in working capital 7. Cash balance at the beginning of the period 8. Accumulated cash (line 6+line 7) 9. Present value coefficient at the selected discount rate (rate of return on equity r) K=1/(1+r)n, where n is the number of years. 10. Present value of cash flows (discounted) (p.6*p.9)
11. Sum of current values of cash flows

An assessment of the increase in product production should be based on an analysis of the prospects for the development of the industry and retrospective trends in the development of the enterprise.

The assessment of the annual increase in prices for the company's products is based on macroeconomic and industry studies, as well as on data on price increases in previous years.

Profit from sales is equal to the difference between sales revenue (p. 1) and total costs (p. 2).

Net income is profit from sales reduced by the amount of tax payments (page 3 - page 4). Income tax rates are established by law.

Net cash flow (page 6) is calculated as follows:

The amount of net sales income is adjusted by the amount of accrued depreciation (line 6.1 + line 6.2),

Plus the growth of debt or minus its reduction (repayment) (line 6.1 + line 6.2 ± line 6.3),

Plus the amount of funds received from the sale of fixed assets, or minus the amount of costs for their acquisition (line 6.1 + line 6.2 ± line 6.3 ± line 6.4),

Less projected investments (page 6.5) required for existing production equipment to achieve forecast growth rates.

If production growth rates have already stabilized and the commissioning of new capacities is not expected, investments are directed only to replacing current assets as they wear out. When it is not possible to make an exact calculation, investments can be assumed to be equal to depreciation, since over a sufficiently long period of time (more than five years) the amount of depreciation will be equal to the reserves required to replace current assets.

The increase in working capital (p. 6.6) is calculated based on its required value for each planned year, which represents the working capital that the enterprise should have at the beginning of the period. The amount of required working capital is calculated based on the amount of that part of sales proceeds (per one ruble) that is directed to investing working capital (inventories, accounts receivable, etc.) based on an analysis of the enterprise's need for working capital for past years, as well as its typical value at similar enterprises.

The cash balance at the beginning of the period (page 7) shows the amount of cash the company has in the current period.

Accumulated cash (page 8) is determined by the sum of page 6 and page 7.

The present value factor is calculated based on the discount rate (page 9).

The present value of cash flow by year is determined by multiplying the net cash flow values of each year by the calculated present value ratio (p. 6 p. 9).

The sum of the current values of cash flows is calculated by summing the current values of the cash flow for the entire planning period.

Features of choosing the organizational structure of an enterprise

The organizational structure is the basis for performing enterprise management functions. Thus, it is understood as composition, subordination, interaction and distribution of work between individual employees and entire departments.

In simple terms, the organizational structure of an enterprise is a collection of divisions, as well as managers headed by general director. Its choice depends on many factors:

age of the organization (the younger the company, the simpler its organizational structure);
organizational and legal form (JSC, LLC, individual entrepreneur, ...);
field of activity;
scale of the company (number of employees, departments, etc.);
technologies involved in the company's work;
connections within and outside the company.

Of course, when considering the organizational structure of management, it is necessary to take into account such characteristics of the company as levels of interaction. For example, how departments of a company interact with each other, employees with employees, and even the organization itself with the external environment.

Types of organizational structures for enterprise management

Let's take a closer look at the types of organizational structures. There are several classifications, and we will consider the most popular and at the same time the most complete of them.

Linear

Linear structure is the simplest of all existing types of enterprise management structures. At the head is the director, then the heads of departments, then ordinary workers. Those. everyone in the organization is vertically connected. Typically, such organizational structures can be found in small organizations that do not have so-called functional divisions.

This type is characterized by simplicity, and tasks in the organization are usually completed quickly and professionally. If for some reason the task is not completed, then the manager always knows that he needs to ask the head of the department about the completion of the task, and the head of the department, in turn, knows who in the department to ask about the progress of the work.

The disadvantage is the increased demands on management personnel, as well as the burden that falls on their shoulders. This type of management is only applicable to small businesses, otherwise managers will not be able to work effectively.

Line-staff

If small company which used linear structure management develops, then its organizational structure changes and turns into a linear-staff structure. Vertical connections remain in place, however, the manager has a so-called “headquarters” - a group of people who act as advisors.

The headquarters does not have the authority to give orders to the performers, however, it has a strong influence on the leader. Based on the decisions of the headquarters, the management decisions.

Functional

When the workload on employees increases and the organization continues to grow further, the organizational structure moves from a line-staff to a functional one, which means the distribution of work not by departments, but by functions performed. If everything was simple before, now managers can safely call themselves directors of finance, marketing and production.

It is with a functional structure that one can see the division of the organization into separate parts, each of which has its own functions and tasks. A stable external environment is an essential element of supporting the development of a company that has chosen a functional structure.

Such companies have one serious drawback: the functions of management personnel are very blurred. If in a linear organizational structure everything is clear (sometimes even too clear), then with a functional organizational structure everything is a little blurry.

For example, if problems arise with sales, the director has no idea who exactly to blame. Thus, the functions of management sometimes overlap and when a problem occurs, it is difficult to determine whose fault it was.

The advantages are that the company can be multidisciplinary and cope well with this. Moreover, due to functional separation, a firm can have multiple goals.

Linear-functional

This organizational structure is only applicable to large organizations. Thus, it combines the advantages of both organizational structures, however, it has fewer disadvantages.

With this type of control, all main connections are linear, and additional ones are functional.

Divisional

Like the previous one, it is only suitable for large companies. Functions in the organization are distributed not according to the areas of responsibility of subordinates, but according to types of product, or according to the regional affiliation of the division.

A division has its own divisions, and the division itself resembles a linear or linear-functional organizational structure. For example, a division may have a procurement department, a marketing department, and a production department.

The disadvantage of this organizational structure of the enterprise is the complexity of connections between departments, as well as the high costs of maintaining managers.

Matrix

Applicable to those enterprises that operate in the market where products must be constantly improved and updated. For this purpose, the company creates working groups, which are also called matrix ones. It follows from this that double subordination arises in the company, as well as constant collaboration of employees from different departments.

The advantage of this organizational structure of the enterprise is the ease of introducing new products into production, as well as the company’s flexibility to the external environment. The disadvantage is double subordination, due to which conflicts often arise in work groups.

conclusions

So, the organizational structure of an enterprise is a company’s management system and its choice determines the ease of performing tasks, the company’s flexibility to the external environment, as well as the load that falls on the shoulders of managers.

If the company is small, then at the stage of formation, as a rule, in it naturally a linear organizational structure arises, and as the enterprise develops, its structure becomes more and more complex look, becoming matrix or divisional.

Video - an example of a company's organizational structure: