The linear-functional structure is the superposition of linear and functional structures on top of each other. It has both linear and functional branches of subordination. A linear-functional management structure, like a functional one, consists of line managers and functional units, the difference is in the connections between them.

The top-level line manager directly manages lower-level line managers on production issues. Functional units are monitored by key performance indicators: profit, profitability, labor productivity, wage fund, rhythm, technical level of production.

The functional link manages the linear links of the lower level within its competence (indirect management), through the management of lower-level functional performers: economists, accountants, engineers.

In contrast to the functional management structure, there are no subordination relationships between functional and second-level line managers. The decision made by the functional level is sent to the higher-level line manager as feedback, and only then the line manager arranges the order of execution of functional tasks by lower-level linear units. Between functional and lower linear links there are connections in the form of information flows, which are expressed in periodic reporting, requests, and responses.

In a linear-functional management structure benefits preserved functional structure (specialization of management activities) and the dignity of a linear structure (unity of command).

Serious disadvantage This structure can be considered to be its cumbersomeness, inflexibility, its inability to quickly and adequately respond to unforeseen and sudden changes in the situation. Both linear and functional branches can respond to changes only by sequentially passing information about them from the lowest management level to the highest and the same sequential response throughout the entire management chain, which is associated with time delays and distortion of information. Since the structure is closed to the top manager, as the scale of activity increases, his information overload increases, which increases the likelihood of making wrong decisions. The lack of horizontal connections in this structure when solving complex management problems does not make it possible to take comprehensive measures to eliminate them. Reorganization of such a structure is very painful for the enterprise.

11.2. Divisional OSU: product, regional and consumer-oriented

The divisional structure (from the English Division - department) was first used in the management practice of the President of the General Motors Corporation, Alfred Sloan, in the late 20s - early 30s. The peak of practical use of such structures occurred in the 60-79 years. The need for new approaches to organizing management was caused by a sharp increase in the size of enterprises, the diversification of their activities and the complication of technological processes in a dynamically changing external environment. As a result, branches have turned into unique “profit centers” for corporations, actively using the freedom provided to increase the efficiency and profitability of the business. At the same time, divisional management structures lead to an increase in hierarchy and lengthening of the management vertical, since with their development it became necessary to form intermediate management levels to coordinate the work of departments and groups, and, accordingly, to create a secondary functional system in the intermediate management groups themselves. This in turn leads to an increase in the cost of maintaining the management apparatus and an increase in the degree of inertia of the organization.

The divisional structure is mainly used by large corporations, which, within the framework of their giant enterprises, began to create production units - divisions, giving them economic and operational-tactical independence. At the same time, the administration reserved the right of strict control in matters of strategic development, research and development, and investment. Therefore, the divisional structure is characterized by a combination of centralized coordination with decentralized management. The key figures in these structures are not functional managers, but line managers who head production departments and report directly to the president of the corporation.

Divisional structures exist in three types:

· grocery

· consumer-oriented

· regional (territorial)

Product divisional structure differs in that each division is focused on the production of certain products that are technologically unrelated to each other.

Purpose of creation grocery divisional management structure - to pay as much attention to the production of each type of various products of the company as a small company that produces one type of product pays to it. For this purpose, the company organizes food branches. Management and sales powers are transferred to the executive directors of the branches. In each branch, secondary functional services are organized, which are also subordinate to the executive director of the branch, but are controlled by the primary services of the company on issues of their competence.

This structure is successful in highly diversified companies. Having their own functionality in each division gives departments the opportunity to develop independently of each other.

Under these conditions, a company can painlessly liquidate some divisions or create new ones for itself and, more importantly, for its divisions. In the same way, without prejudice to others, reorganization within the division takes place. The construction of the division itself can be organized as a bureaucratic management structure.

This structure is successful in conditions of rapid production change. however, divisional structures also have a disadvantage: they are expensive due to duplication of management functions. The presence of functionalities at the headquarters is explained by their tasks, which are different from the tasks of the functionalities in the divisions: the functionalities of the headquarters are focused on solving global strategic issues of the company.

Divisional management structure, consumer-oriented, is created where a firm produces homogeneous products that must be modified in accordance with the needs of several large groups of consumers. The goal is to satisfy the needs of all consumers as well as a company targeting only one group of consumers would. Each division within it serves a separate consumer market.

Every entrepreneur, when creating a company, must think about what will be inherent in his enterprise. It should be taken into account that each employee must understand in which department he works, what his tasks are and who his manager is. And the entrepreneur must monitor the results of the work not of each employee, but of those who are responsible for this or that work.

Management represents the composition, subordination and interrelation of different divisions, as well as individual officials who perform the management functions assigned to them.

They make up links and steps. A link is the functions of which are strictly defined and limited. A stage is a set of links that are at the same level in the management hierarchy.

There are several types of organizational structures. 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 encouraged;

The manager’s responsibility for the final result of the organization’s management increases;

Increased productivity from a diverse workforce;

Conditions and opportunities for career growth are created;

It is not very difficult to monitor the activities of employees of all departments.

The linear-functional structure has the following disadvantages:

The head of the enterprise bears full responsibility for making a profit;

Coordination between departments becomes more difficult;

The process of making and implementing decisions slows down;

There is no flexibility in the structure, since the basis for functioning is a set of various rules and principles.

The linear-functional management structure is a mixture of linear and 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. Linear-functional is formed according to the types of activities where the divisions of the enterprise are created. And functional units are divided into even smaller ones that perform a specific range of tasks.

The linear-functional management structure is currently the most common and is 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.

The linear-functional structure is based on system-forming connections. These are vertical ones, among which a distinction is made between linear (or basic) and functional (or additional). Through the former, subordinates are managed. The manager determines what tasks will be solved and by whom specifically. Through functional units at the highest level, they give instructions to lower ones.

Divisional structures are structures based on the allocation of large autonomous production and economic units (departments, divisions) and the corresponding levels of management, granting these units operational and production independence and transferring responsibility for making a profit to this level.
Divisional (departmental) management structures are the most advanced type of hierarchical type organizational structures.
Divisional structures are characterized by full responsibility of department heads for the results of the activities of the units they head. In this regard, the most important place in the management of companies with a divisional structure is occupied not by the heads of functional departments, but by the managers heading production departments.
The structuring of a company into departments (divisions) is carried out, as a rule, according to one of three principles: by product - taking into account the characteristics of the products or services provided, depending on the focus on a specific consumer; and by regional - depending on the territories served. In this regard, three types of divisional structures are distinguished:

· divisional-productive structures;

· consumer-oriented organizational structures;

· divisional-regional structures.

With a divisional product structure, the authority to manage the production and sales of any product or service is transferred to one manager, who is responsible for this type of product. Heads of functional services (production, procurement, technical, accounting, marketing, etc.) must report to the manager for this product.
Companies with this structure are able to respond more quickly to changes in competition, technology and customer demand. Activities for the production of a certain type of product are under the leadership of one person, coordination of work is improved.
A possible disadvantage of the product structure is an increase in costs due to duplication of the same types of work for different types of products. Each product department has its own functional divisions.
When creating consumer-oriented organizational structures, divisions are grouped around certain consumer groups (for example, the army and civilian industries, industrial, technical and cultural products). The goal of such an organizational structure is to satisfy the needs of specific customers as well as a company that serves just one group of them does.

Figure 1. Product divisional structure

Figure 2. Regional divisional structure

If the company’s activities are spread over several regions in which the use of different strategies is required, then it is advisable to form a divisional management structure on a territorial basis, i.e., use a divisional-regional structure.
All activities of the company in a certain region in this case must be subordinate to the appropriate manager, who is responsible for it to the highest governing body of the company. The divisional-regional structure facilitates the solution of problems associated with local customs, peculiarities of legislation and the socio-economic environment of the region. Territorial division creates conditions for training management personnel of departments (divisions) directly on site.
We can distinguish the following most common types of international divisional structures, the construction of which is based on a global approach:
1. Globally oriented product (product) structure (Worldwide Product Structure), based on a divisional structure with divisions based on product characteristics, each of which independently operates on the entire world market. This structure can be used by companies with highly diversified products, products that differ significantly in their production technology, marketing methods, sales channels, etc. It is used primarily by those companies for which differences between types of products are more important than differences between geographic regions in which these products are sold. This type of structure contributes to the international orientation of the company, however, it is characterized (although like any other type of divisional structure) by weakening coordination between the individual divisions of the company; increased duplication of their activities.

Figure 3. Globally oriented product (commodity) structure

2. Globally oriented regional structure (Worldwide Regional Structure), also based on a divisional structure, but using the geographical principle of construction. at the same time, the national market is often considered only as one of the regional divisions. It is most advisable to use this type of structure by companies for which regional differences are more important than differences in products. Often, globally oriented regional organizational structures are used in industries with technologically slowly changing products (automobiles, drinks, cosmetics, food, petroleum products). The advantages of such a structure include close relationships with geographic regions and high coordination of activities within them, while the disadvantages include weak coordination of the work of individual departments and duplication of their activities.

Figure 4. Globally oriented regional structure

3. Mixed Structure, Mixed Overlay, where, along with an emphasis on a specific product (geographical region, functions), structural connections of the territorial and functional (product and functional or territorial and product) type are built in. This type of structure arose due to the fact that each of the above structures can have strengths and weaknesses; there is not a single organizational structure that could be considered ideal. The organizational structure of management must correspond to the specific operating conditions of the company, and for large objects they are quite complex and varied and no single organizational structure in its pure form can be adequate to them. The mixed structure is currently very popular among American multinational corporations (especially those with highly diversified activities).

What is a functional management structure? What is it, what is connected with it, what scheme does it have? We will try to answer these questions, as well as others, in the course of this article.

The functional management structure is a type of structure that is formed based on the main directions in which a particular organization operates. In this case, the units will be combined into special blocks.

Many large and medium-sized enterprises and organizations use an approach called “functional” when forming divisions. What does it mean? This means that the functional management structure implies the use of functions in the areas in which the company operates. This may be sales of products, their production and similar actions. The blocks will be formed according to their functions, that is, they will have the same root names that are characteristic of the area of ​​activity.

The functional structure of management has some features: the separation of divisions located within the boundaries of blocks can only be carried out according to certain approaches. Let's give a simple example: the organization of workshops takes place with an eye on the products being manufactured. At the same time, the organization of sites will be dictated by the technologies used in the production of products.

Structure blocks

The functional structure of management assumes the presence of three blocks.

The first is production. It includes those divisions that are in one way or another related to the core products manufactured by the company. The connection can also be between services and their provision, and not only visible in the case of products. The production block also houses auxiliary units that provide all the services necessary for the functioning of the main units. Also in the production block are those divisions that service both auxiliary and main processes. Well, this chain is completed by experimental units. They are responsible for producing prototypes of certain products. The role of departments can be very different. Moreover, it will directly depend on the nature of the activities carried out by the organization. Not every company creates prototypes. And the means that are used for auxiliary production are also not available in every company.

The second block is management. The functional structure of management in this case suggests that the block will contain service, information, pre-production (that is, preparatory), administrative and advisory departments and commissions. Let's look at this issue a little more specifically. Information departments include various kinds of archives and libraries. Service units will carry out their activities dealing with issues related to research in the field of marketing. Administrative commissions are nothing more than legal departments and accounting departments, planning services. But advisory commissions can be presented as committees working in the field of improving technology and the organization as a whole.

The third block, which is used by the functional management structure, is divisions related to the social sphere. Examples include certain children's institutions and health centers, various clubs and recreation centers, and so on.

Where is the functional organizational management structure used?

The question of the scope of application today has already been studied far and wide. There are 5 main areas where a functional organizational management structure is used. The first area is single-product enterprises. The second is enterprises that implement quite complex and long-term projects. They can also be innovative. The third area in which the functional structure of enterprise management is applied is large companies and firms that are concentrated on the production of a certain type of product, that is, which have their own specialization. The fourth area of ​​application of this management structure is the organization of design and research activities. Well, this list is completed by enterprises with a very narrow specialization.

What tasks does a functional control system solve?

In the course of using this structure, several challenges arise that management faces. Let's try to list them:

1) Difficulty in ensuring communications.

2) Leveling the load that falls on a particular unit.

3) Careful selection of personnel and specialists who will be allowed to work in functional departments.

4) Assistance in coordinating departments.

5) Prioritization, selection of specialists.

6) Development and implementation of motivational, special mechanisms.

7) Prevention of separatist processes within units.

What are the advantages of a functional management structure?

1) Specialists are quite competent in the implementation of certain specific functions.

2) Line managers practically do not participate in solving special issues. It is also possible to expand the capabilities that line managers will have while reducing their workload. Managers will be able to engage in operational management of production processes by redirecting issues to other appropriate persons.

3) If necessary, experienced specialists participate in the role of consultants. As a result, there is no longer a need (or is noticeably reduced) to attract specialists with a broader work profile.

4) The risk of erroneous decisions will not be zero, but it will certainly be reduced to it.

5) When performing managerial functions, duplication will be excluded.

What are the disadvantages of a functional management structure?

1) It is quite difficult to maintain constant mutual connections established between services.

2) Decision making requires a lot of time, it is a long procedure.

3) Functional services often lack mutual understanding among themselves. Actions turn out to be uncoordinated, there is no unity in them. At the same time, the responsibility of performers, which they must bear for the work performed, is reduced. All this happens because different performers receive instructions not just from different managers - they receive them from several managers at the same time.

4) There is an excessive interest of certain departments in the implementation of tasks and goals.

5) Personal responsibility is reduced. No one wants to take responsibility for the final result.

6) The control required to monitor the process and its progress is quite complex. Moreover, this applies to individual projects and the entire region as a whole.

7) The organizational form reacts to changes with great difficulty; it has already frozen and is not developing.

Types of functional control system

One of the varieties is the linear-functional management structure. Its diagram is presented in the figures below.

The linear-functional structure is used to divide managerial labor. At the same time, functional units should advise and provide assistance on the development of certain issues, as well as prepare plans, programs, and decisions. The entire load associated with command and control is transferred to the linear units.

The linear-functional management structure, the diagram of which was shown earlier, has its advantages and disadvantages. In fact, they will become the subject of further analysis of the topic.

Managers belonging to functional units have a certain influence on production units, but only in a formal sense. In most cases, they cannot do anything on their own, that is, they are not able to give orders without confirmation from the relevant representatives. In general, the role of functional services has a direct connection with the scale at which activities are carried out. They are also related to the management structures of an organization or enterprise. All technical training falls to the functional services. They should work through the issues in advance and leave options for their solutions. In this case, questions may relate to the management of the production process.

What are the advantages of a linear-functional structure?

1) Decisions and plans are prepared more carefully and deeply. Therefore, they have greater efficiency. Plans may also be related to the specialization of individual employees.

2) Line managers are freed from resolving a number of issues, which, in turn, allows them to reduce their workload. These are issues related to logistics, financial calculations and their planning, as well as other issues.

3) The presence of a certain connection and a clear hierarchical ladder. An employee does not report to several managers, but only to one.

What disadvantages does the linear-functional structure have?

1) Each individual link does not want to work for the common good of the company or take on other people’s tasks. In most cases, a link works only on its own goals, performing a narrow range of functions.

2) There are no close relationships between departments. There is virtually no interaction between these components. This concerns the horizontal.

3) But vertical interaction, on the contrary, is very highly developed. Even much more than necessary.

Schemes

The functional management structure, an example of which was given almost at the very beginning of this article, has the diagram shown below.

It is characterized by the creation of certain divisions. Moreover, each of them will have specific tasks that must be performed.

An example of a linear-functional management structure can be demonstrated by the Federal Migration Service. Another diagram of this management structure is presented below.

Conclusion

The advantages and disadvantages of a functional management structure were discussed during the article. The concept was also defined and the blocks included in the functional management structure were described.

Linear structure is one of the simplest organizational management structures and reflects the most general level of division of managerial labor. The essence of line management is that at the head of each department is a manager, vested with certain powers and supervising the employees subordinate to him.

The linear management structure provides direct influence on the management object and provides for the full implementation of the principle of unity of command. The manager himself is subordinate to his superior. At the same time, there is no staff of specialists to perform individual functions. Such a structure is organized only on vertical connections through which all management commands pass.

The linear management structure is used in small organizations at the lowest level of management, performing basic production functions; it is harmonious and formally defined, but at the same time it is not flexible enough.

Advantages of a linear structure:

ensures quick decision making;

no conflicting commands appear;

consistency of actions of performers;

full responsibility of the manager for the results of the activities of his unit.

Disadvantages of a linear structure:

lack of specialists to implement individual management functions;

the manager must have extensive, versatile knowledge in all types of activities (economic, organizational, technical, social);

the structure is not flexible enough and does not respond quickly enough to changing conditions.

Functional organizational structure sometimes called traditional or classical, due to the fact that it was the first structure to be developed and implemented.

In such a structure, management efficiency is increased through the creation of functional units, the participation of qualified specialists in the work, transferring to them powers and responsibility for the results of their activities, specializing in performing certain types of work in a unified line management system. Traditional blocks of one profile unite specialists into specialized structural units - these are departments of production, marketing, finance, etc.

Advantages:

stimulates business and professional specialization;

line managers are freed from the need to have in-depth knowledge of each function;

The work of line managers is simplified.

Flaws:

in a large organization, the chain of command from the manager to the direct executor becomes too long;

There may be duplication in management issues.

19.Linear-functional organizational structure.

The traditional linear-functional organizational structure is a combination of linear and functional departmentalization.

The basis of the linear-functional structure is linear divisions that carry out the main work in the organization (production), and specialized functional divisions serving them, created on a resource basis: personnel, finance, raw materials, marketing, etc. In some sources, serving functional units are called headquarters, and the linear-functional structure is called headquarters.

The main advantages of these structures are as follows:

high efficiency with a small variety of products and markets;

centralized control, ensuring unity in solving the organization’s problems;

functional specialization and experience;

high level of utilization of the potential of function specialists.

The disadvantages of linear-functional structures include:

the emergence of problems of interfunctional coordination;

assigning responsibility for overall results only to the highest level;

insufficient response to dynamic changes in the external environment;

increase in decision-making time due to the need for approvals in large organizations.

Linear functional diagrams are simple and understandable. They make it possible to organize effective mass production, ensure controllability of the organization until the scale of controllability is exceeded, and growth does not limit the development of effective horizontal connections. Moreover, experts believe that in the development of an organization it is mandatory to go through the stage of using linear-functional structures. This helps to develop the “superior-subordinate” relationship and subsequently bring the organization to the level of an organic type.

Traditional schemes are based on a mechanistic approach; they are effective in a simple and stable external environment.