7.5 Several main organizational structure forms

7.5 Several main organizational structure forms

Linear organizational structure

Figure 7-5- 1 linear organizational structure

Linear organizational structure is a simple structural model in the early stage of organizational development. The so-called "straight line" means that in this organizational structure, the authority directly "flows" (transfers and decomposes) from the top, and reaches the bottom of the organization through several management levels.

1. Basic characteristics of linear organizational structure

(1) Every supervisor in the organization has direct power over his direct subordinates.

(2) Everyone in the organization is only responsible or reporting to his immediate superior.

(3) The person in charge has absolute or complete power within its jurisdiction, that is, the person in charge exercises decision-making, command and supervision over all business activities of the departments under his jurisdiction.

2. Advantages of linear organizational structure

The advantages of this organizational structure are centralized power, clear responsibilities, unified command, simple and convenient information communication, and convenient unified command and centralized management.

3. Shortcomings of linear organizational structure

Executives at all levels must be familiar with various activities related to the business of their departments; The lack of horizontal coordination and the absence of a functional organization as an assistant to the Chief Executive can easily cause the Chief Executive to be in a hurry. Therefore, once the scale of the organization is enlarged and the management work is complicated, the administrative director may lose sight of one thing because of lack of experience and energy, and it is difficult to carry out effective management.

4. Scope of application of linear organizational structure

Linear organizational structure is suitable for organizations with simple technology, simple business and small scale.

Functional organizational structure

Figure 7-5-2 Example of Functional Organization Structure

The functional organizational structure originated in the early 20th century, and was established by Fa Yuer when he was the general manager of the coal mine company he operated, so it is also called "Fa Yuer Model". It is to organize the division of labor according to the function, that is, from the top to the grass-roots level of the enterprise, combine the management business and its personnel who undertake the same function, and set up corresponding management departments and management positions.

1. Features of functional organizational structure

(1) Management organizations and personnel at all levels are highly specialized, and each performs certain management functions.

(2) the implementation of the line-staff system. The whole management system is divided into two types of institutions and personnel: one is linear command institutions and personnel, which have the power to give orders to subordinates; The other is the staff organization and personnel, whose duty is to give advice to commanders at the same level and play the role of business guidance, supervision and service to subordinate units.

(3) Management power is highly centralized. The decision-making power of production and operation of this organizational structure is concentrated in the top leadership.

2. Advantages of functional organizational structure

(1) The responsibilities of each department are clear, and the functional objectives are easy to achieve.

(2) Strong stability. Each manager belongs to a functional department and specializes in a certain functional work, which makes the whole organizational system highly stable.

(3) Specialized division of labor among departments and personnel is conducive to strengthening specialized management and improving work efficiency.

(4) the management power is highly centralized, which is convenient for the top leadership to strictly control the whole organization.

3. This functional structure has the following disadvantages.

(1) has poor lateral coordination. The highly specialized division of labor and stability make the vision of each functional department narrow, and it is easy to produce departmentalism, friction and internal friction.

(2) Poor adaptability to environmental changes. Because people mainly care about their own professional work, which hinders their communication with each other, the whole organization system can't cope with the changes of the external environment in time.

(3) The burden of the organization's top leaders is often heavier. In terms of functional structure, the horizontal coordination between departments can only be solved by senior leaders, and the decision-making power of management is concentrated in their hands. Therefore, the work burden of senior leaders of enterprises is heavier.

(4) It is not conducive to cultivating all-round management talents who can manage the whole organization.

4. Scope of application of functional structure

The functional structure is mainly suitable for small and medium-sized organizations with single product variety, slow development and change of production technology and stable external environment.

Linear functional organizational structure

Figure 7-5-3 Example of Organizational Structure of Linear Functions

Linear functional organizational structure is a common structural form in modern industry, which is called "U-shaped organization" or "single functional structure" and "unit structure".

1. The characteristics of the organizational structure of linear functional system

Based on the straight line, the corresponding functional departments are set up under the administrative heads at all levels to engage in professional management and serve as the staff of the administrative heads at that level, so as to realize the combination of the unified command of the heads and the guidance of the staff of the functional departments. Under this structure, subordinate institutions are not only managed by superior departments, but also guided and supervised by functional management departments at the same level. Administrative leaders at all levels are responsible step by step and highly centralized. This is a system that divides departments according to management functions and is directly commanded by senior operators.

2. Advantages of linear functional organizational structure

It not only maintains the advantages of centralized and unified command of linear structure, but also absorbs the advantages of fine division of labor and professional management of functional structure, which is helpful to improve management efficiency.

3. Defects in the organizational structure of linear functional system

(1) is a typical centralized structure, with power concentrated at the top and subordinates lacking the necessary autonomy.

(2) The horizontal connection between various functional departments is not smooth, and it is easy to produce disconnection and contradiction.

(3) This organizational structure is based on a high degree of "separation of powers". If the objectives between functional departments and linear departments are not unified, it is easy to produce contradictions. In particular, it is often difficult to determine the responsibility for matters that require multi-sectoral cooperation.

(4) The information transmission route is long and the feedback is slow, so it is difficult to adapt to the rapid changes in the environment.

4. Scope of application of linear functional organizational structure

Linear functional structure is suitable for enterprises with single product, large sales volume and little decision-making information, and is widely adopted by large and medium-sized enterprises.

Organizational structure of business division system

Figure 7-5-4 Example of organizational structure of regional business division system

Figure 7-5-5 Example of organizational structure of product division system

Division-type organizational structure, also known as M-type structure or multi-department structure, is sometimes called product-type structure or strategic business unit.

1. Characteristics of the organizational structure of this division

Division system is a form of hierarchical management, hierarchical accounting and self-financing, that is, an organization is divided into several divisions according to regions or product categories. From product design, raw material procurement to product sales, the Division and its subordinate factories are responsible for independent accounting and operation. The headquarters of the company only reserves the power of personnel decision-making, budget control and supervision, and controls the business department through profit and other indicators.

2. Advantages of the organizational structure of the division system

(1) Head office leaders can get rid of daily affairs and concentrate on the overall situation.

(2) Independent management and independent accounting can give full play to the enthusiasm of management, which is more conducive to organizing specialized production and realizing internal cooperation.

(3) Comparison and competition among business divisions are beneficial to the development of the organization.

(4) It is easy to coordinate the functions of supply, production and sales within the Division.

(5) Managers of business divisions should consider problems from the perspective of the whole business division, which is conducive to cultivating and training all-round management talents.

3. Defects in the organizational structure of the division system

(1) The headquarters overlaps with the functional organizations of the Division, which constitutes a waste of management personnel.

(2) Divisions conduct independent accounting, and each division only considers its own interests, which affects the cooperation between divisions.

(3) The use of scientific research resources is scattered, making it difficult to carry out in-depth research activities.

4. The scope of application of the organizational structure of the division system

Division system is suitable for large organizations with large scale, many products and complex technology. When the intangible assets of the headquarters are attractive, the management ability is strong, and the branches have independent markets and interests, it is suitable to choose the division system.

Figure 7-5-6 Matrix Structure Example

Matrix organizational structure

Matrix organizational structure is to combine departments divided by functions with teams divided by products (projects) to form a matrix. Employees not only keep in touch with the original functional departments in organization and business, but also participate in the work of the project team.

Characteristics of organizational structure of 1. matrix

The characteristic of matrix organization is to set up a specialized agency across functional departments around a special task. This organizational structure is fixed, but the personnel are changing.

2. Advantages of matrix organization structure

(1) Combining the horizontal and vertical relations of organizations is beneficial to cooperative production and meets the needs of environmental changes.

(2) Personnel allocation for specific tasks is conducive to giving full play to personal advantages, gathering the strengths of many companies, improving the quality of project completion and improving labor productivity.

(3) The irregular combination of personnel in various departments is conducive to information exchange, increasing mutual learning opportunities and improving professional management level.

3. Shortcomings of matrix organization structure

(1) The responsibility of the project leader is greater than the power, and there are not enough rewards and punishments; Employees are faced with a dual relationship of authority, which is prone to confusion and confusion.

(2) Because the project members come from various functional departments, they will still return to their original units after the task is completed, which is easy to produce temporary ideas and has a certain impact on their work.

(3) Employees should have good interpersonal skills and receive intensive training.

(4) It takes time and requires frequent meetings to discuss and resolve conflicts.

4. Scope of application of matrix organizational structure

(1) Matrix structure is suitable for organizations with medium-sized and medium-sized product lines.

(2) When there is a high degree of dependence between departments and environmental uncertainties, the matrix structure is appropriate.

network structure

Figure 7-5-7 Network Organization Structure Example

1. Structural characteristics and manifestations of network organization

Network organizational structure is a new organizational structure established and developed with the help of modern information technology. The core of the network organization structure is a small-scale sales company, whose job is to directly supervise the activities carried out within the company and coordinate the relationship with other external institutions that manufacture, distribute and perform other important functions of the network organization.

Network organization structure is a lean central organization, which is based on the establishment and maintenance of contractual relationship and relies on external institutions for manufacturing, sales or other important business activities.

2. Advantages of network organization structure

(1) Reduce management cost and improve management efficiency.

(2) Realize the integration of supply chain and sales link in a wider scope.

(3) Simplify the level of organization and management, and realize full authorization management.

3. The shortcomings of the network organization structure

Network organization structure needs the support of science and technology and external environment.

4. Scope of application of network organization structure

The organization of network structure needs considerable flexibility to quickly respond to environmental changes, and it is suitable for organizations that need low-cost labor, such as toy and clothing manufacturing.

Test you

Now, I want to ask questions. You should think with your head!

Think about it, what are the advantages of matrix organizational structure? What kind of organization does it apply to?

point out

Tip: The matrix organizational structure is suitable for organizations whose work contents change frequently and the completion of each work requires a lot of technical knowledge, or organizations that are temporarily formed for a task in general organizations.