Management structure: types, types and functions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What is a management structure? What does this term mean? If you do not know what to answer the questions, then you should definitely read our article. We will start with the management structure and finish with all the nuances of this area. Believe me, it won't be boring.

What is this

We will analyze the structure of the management system, but first we will define what management is.

The term means all kinds of forms, methods and techniques of production and personnel management. As soon as management appeared, its object was indivisible, but over time, several objects spun off from the common object, from which their own directions later appeared. If we talk about the present tense, then there are types of management specific to a particular country. For example, the Russian management model is known all over the world.

How it all started

Before discussing the management structure, it would be a good idea to define the management structure.

Today, management theory distinguishes two types of enterprise management andorganizations: organic and bureaucratic. Each of them has different bases and characteristics that allow us to highlight areas of use and development prospects.

According to historians, the bureaucratic type was the first to form. The author of the concept was the German sociologist Max Weber, who developed the theory at the beginning of the 20th century. What is its essence? Weber developed a normative model of rational bureaucracy that radically changed the systems of accountability, communication, work structure, wages and relationships in the enterprise. The sociologist called the basis of the model an organized organization that makes serious demands on both people and structures. We can highlight the key provisions of this management structure model:

1. Division of labor, only a qualified specialist should be in each position.
2. Hierarchy of management. In this case, the lower level is subordinate to the upper one.
3. Norms and formal rules that ensure that managers perform their duties and tasks equally.
4. The spirit of formal concern. Pertaining to officials during the performance of their duties.
5. Employment only if the candidate meets the qualification requirements, and not the personal preferences of the manager.

In the bureaucratic structure of management, several basic concepts can be distinguished - responsibility, rationality, hierarchy. The sociologist believed that it was impossible to displace a person and a position, because the content and composition of managerial activity should be determined bythe needs of the organization, not its employees. Specifically formulated prescriptions do not allow employees to be creative in their approach to the task or to show subjectivity. This, perhaps, is the difference between the modern structure of the organization of management and the historically established communal one. Another difference is that the community structure emphasized excellence and partnership.

The bureaucratic management structure over the years of its existence has repeatedly proved its effectiveness, especially in very large organizations. After all, it is there that they need coordinated work in order to move towards one goal.

What is so unusual about the organizational structure of a management organization? Its essence is to divide the work of managing production. In this case, each position and unit is created in order to perform certain jobs or a set of functions. In order to qualitatively perform functions, officials are charged with certain rights to dispose of resources. These same people are responsible for the performance of the functions assigned to them.

Management directions

We have already said that the structure of the management system has many branches. In addition, the structure has certain requirements. Among them:

1. Efficiency. Strategic decisions must be made in a timely manner.
2. Optimal. It is about rationality with a small number of levels of management.
3. Reliability. Reliable and uninterrupted reflection of information.
4. Flexibility. In this case, we are talking about the ability to constantly change.
5. Economy. Achieved through maximum effect at low cost.
6. Stability of the structural system. We are talking about the integrity and immutability of the system, both under internal and external influences.

There are several types of management structures in management. Let's take a look at them:

1. Strategic management. We are talking about orienting production to the desires and needs of consumers, adapting the enterprise to the external environment, as a result of which the intended goals are achieved. Strategic management is under the control of the top management of the organization.
2. Operational management. It implies the organization and management of the processes of implementing operational plans, as well as production control. This includes the distribution of resources, work, making important adjustments to financial and production processes, as well as the progress of these assignments.
3. Tactical management. The tactical structure of management in management is aimed at developing an enterprise strategy. Usually this is done by middle management, and it is a prospect for about a year. This type of management can be attributed to daily work.
4. Production management. We are talking about the management of auxiliary, main, as well as supporting processes, due to which the goods supplied to the market are produced.
5. Marketing management. The essence of management is to study the markets, perspectiveand the current market situation, form a pricing policy, create distribution channels, engage in advertising work.
6. Management in the field of logistics. Here we are talking about the execution of business contracts, which are concluded for the supply of semi-finished products, materials, components. And also this includes delivery, packaging, incoming control processes, delivery of finished products to the population, its storage.
7. Financial management. Includes management of financial relations and the movement of financial resources.
8. Personnel management. Here we are talking about workforce planning, personnel assessment and selection of the best of them, personnel selection, salary and benefits determination, training and advanced training, professional adaptation and orientation, work performance assessment.
9. Accounting management. The management of the organizational structure of this type of management is aimed at collecting information, its analysis and processing. This is done so that later you can compare your own indicators with other enterprises engaged in similar work.
10. Innovation management. The task of this direction is to embody the creative activity of people to create products that are better in some way than already released products.
11. Adaptive management. The staff is busy adapting the enterprise to the conditions of the external environment.

As you can see, the organizational structures of management management are very different from each other. The topic has not yet been disclosed and it is quite difficult for you to understand what it is about, but if youkeep reading, there will be no more questions.

Types of management

Before opening the topic, let's find out what is meant by the definition. So, the types of management are understood as special areas of management activities that are inextricably linked with the solution of specific management tasks.

Management is divided on the basis of the object into general and functional. The meaning of the first is to manage the work of the enterprise in full or in separate links. Special or functional management is understood as the management of certain areas of the enterprise or its units. This just includes the areas of management that we listed above.

Management also differs in terms of content. Allocate strategic, normative and operational management. The first assumes that the manager will develop strategies, distribute them over time, provide control over their implementation, and form the potential for success of the enterprise.

Regulatory management includes the implementation and development of the company's philosophy, business policy, the formation of common strategic intentions, determining the company's position in the market niche.

Operational management can be said to be the development of operational and tactical measures that are aimed at the actual implementation of enterprise development strategies.

Management principles

The structure of financial management or any other is based on certain principles. About them nowlet's talk. What are principles? These are stable requirements and general patterns, only if they are observed, the effective development of the enterprise is ensured.

So, the principles are:

1. Hierarchy.
2. Integrity.
3. Optimal and targeted.
4. Democratization.
5. Decentralization and centralization.

There are also several management approaches that fit not only into the structure of financial management, but also any other. There is a process and system approach, and if in the first case we are talking about management as a process, for example, organization, planning, motivation, supervision, etc., then in the second we are talking about the designation of tasks and goals in an indicative form. As a rule, a goal tree is built, with the help of which the system is divided into subsystems. A striking example is the division of the organization into divisions.

It's still hard to understand what it's about, right? It's okay, we'll cover each approach separately.

System approach

If everything is clear with the structure of management principles, then let's study the systematic approach in more depth. The basis of this approach is the study of objects as systems. Thanks to a systematic approach, the enterprise adequately identifies problems in certain areas and solves them.

To make it clearer, let's define a system. So, a system is a set of elements that are interconnected, forming a unity, integrity.

The systems approach has its own principles, which are also necessarytell. Among them:

1. Structural. The description of the system occurs through the establishment of its structure, that is, the relations and connections of the system.
2. Integrity. We are talking about the dependence of each element on the function, place and other things.
3. Hierarchy. Each component of the system, in turn, is also a system, and so it is in everything.
4. Relationship between environment and structure. Properties appear and form in the system only when interacting with the environment. Multiplicity of descriptions of each system. Since each system is complex, for proper study it is necessary to build many different models that will describe specific features of the model.

The structure of the quality management system implies some more rules. Here they are:

1. Decision-making can only begin with a clear formulation and identification of specific goals.
2. Any problem is considered as a whole and for this reason the consequences of each decision must be identified in advance.
3. You need to find alternative ways to achieve goals, as well as analyze them.
4. It should not be that the overall goal conflicts with individual goals.
5. It is necessary to follow the principle of ascending from the absolute to the concrete.
6. There must be a unity of synthesis, analysis, and we are talking about both historical and logical.
7. Different-qualitative links should be revealed in the object.

To make the structure of the quality management system more understandable, let's look at how this happens with an example.

During a systematic approachfirst, the output parameters of the service or product are formed. Managers are required to rely on market research. Based on the same data, issues are resolved regarding the subject of production, labor costs, the quality of the goods produced, and so on. It is important that all questions must be answered at the same time. Only if this rule is followed will the output be competitive according to the regulations.

The next step in the management functional structure will be defining login parameters. It is about the necessary resources and information for the process. Managers will first study the organizational and technical level of the production system: the level of organization of production, technology, management and labor. Then the obtained data will need to be compared with the parameters of the external environment, such as economic, political, social, technological and others.

By the way, systems can be both open and closed. Let's talk about each of them in more detail.

Closed and open systems

We have already explained in general terms what a strategic management structure is and not only. Let's now understand what an open and closed management system is.

An open system is a system that feeds on resources and energy from the outside. A radio receiver or a calculator with a built-in solar battery is considered a similar system.

A closed one can be said to have a source of resources or energy within itself. An example of a closed system is a watch that has an internal energy source. This also includes production with its own energy source or a running machine.

It turns out that economic enterprises cannot operate on internal energy alone, because work will require supplies, work with potential buyers, and so on.

Management functions

Organizational structures of the management system do not exist as beautiful names, but have a number of functions. Thanks to them, a stable composition of types of managerial work, which have their own characteristics, is determined. As a rule, they are characterized by the homogeneity of actions, goals, objects. Also, the functions have common tasks and areas of management activity, they least of all depend on the specifics of the enterprise.

The division of functions makes it possible to single out the main tasks and types of management activities, as well as to regulate the procedures and rules for their implementation.

We reviewed the types of management structure and talked about a systematic approach, but still the topic has not been fully disclosed. There is a lack of explanations on the topic of the functions of the systems approach. So, the functions are divided:

1. General. This includes planning, setting goals, monitoring and organizing tasks.
2. Socio-psychological. It's about motivation and delegation. The function is directly related to the psychological situation and the nature of industrial relations.
3. Technological. Communication and solutions are part of this function.

All these functions are inextricably linked and complement each other. In other words, one cannotfunction and not use another one.

But this does not mean that the field of work, which is considered the management of the organization, cannot be divided into separate functions focused on the main groups. We are talking about the following groups:

1. General management. This includes setting management policies and regulations, motivation, organization of work, control, coordination and, of course, accountability.
2. Certain areas of government. A prime example is manufacturing, marketing, human resources, fixed assets and finance.
3. Management of the structure of the enterprise. We are talking about the subject of activity, creation, legal forms, organization, liquidation and reconstruction of the enterprise.

Process approach

Organization of the management structure (management) can be planned with reference to the process approach. What is this about? This is a management approach based on a systematic approach. On the basis of the process approach, the work of the enterprise is organized in such a way that the activities of the organization are divided into business processes, just like the management apparatus into blocks. As a rule, the process approach is presented as a scheme with separate chain links (operations). A derivative chain always ends at a product. By the way, the links that are responsible for a particular business process are formed from the subdivisions of the structure.

The principles of the process approach are as follows:

1. Responsibility of all participants in the chain for economic results.
2. Oriented toconsumer preferences and improved product quality.
3. Motivating employees at the highest level.
4. Weakening the bureaucracy.

But the process approach, as the structure of the management process, has its own distinctive features. These are the points:

1. Managerial steps are reduced, due to this, decisions are made in an accelerated manner.
2. Management delegates its authority and responsibility to employees of the enterprise.
3. The company closely monitors the quality of services and products.
4. All technologies related to business processes are automated and formalized.

What problems might arise?

The structure and concept of management, more precisely, the process approach, sounds quite simple, but in reality, managers face a number of problems. Why is this happening? First of all, it all comes down to money and time. But, on the other hand, this applies to any situation where an untested theory is introduced into an enterprise. Nevertheless, this is not the only problem associated with the transition to a process approach. There are quite a few of them, we will list only the main ones:

1. Introduction of the process approach only at the formal level.
2. Introducing the approach at an informal level.
3. The discrepancy between the created system and the real state of affairs.
4. Processes were not regulated or management does not know how to manage them.
5. Managers do not want to perceive the process approach as a new ideology of the enterprise.
6. Managers are notready for drastic changes, especially the restructuring of the company.
7. Lack of commitment, motivation or competence in process optimization.

How to switch to process management with the least losses?

The quality management framework is such that the right methods must be applied to successfully implement it. And how can this be achieved if both formal and informal implementation is considered a mistake? There are several methods, let's look at them in more detail.

Transition methods

There are two methods for a painless transition to a new type of enterprise management structure: the full and end-to-end method.

The first method is suitable for a system and process approach, as it is based on the allocation of business processes in an already existing organizational structure. Only then can you move on to the process structure. Several provisions are considered the foundation of the method. Namely:

1. Classification and allocation of business processes.
2. Develop methods and standards that ensure the effectiveness of management processes.
3. Formation of a chain of processes within an already working structure.
4. Selection of resources and creation of an information base for the performance of work within the processes.
5. Analysis and monitoring of processes.
6. Improve business processes.
7. Introducing measures that will help achieve planned goals.

As for the end-to-end method, it is suitable for a situational or process approach. Whatis the essence? Management notes end-to-end business processes, for which a description of the sequence of work and workflow is being prepared. After that, they are included in the process structure, which is most often matrix. In this method, the model is first prepared according to the situation, then the existing processes are analyzed. After that, the development of the best model and the reorganization of those processes that work on its basis begin. The last step is the preparation of a new process structure of the enterprise.

It turns out that all problems arise due to the lack of management skills to manage personnel. Whatever the type of management structure, the founder of the enterprise and the management staff must be able to involve employees and interest them. In this case, leadership qualities play a decisive role. The latter must convey to the minds of workers that a change in approach is equal to a change in ideology. Only after the idea takes possession of people's minds, we can say that the tool will be useful. Staff will agree to adopt the new methods, and management will reward them for being accommodating.

Situational approach

We have already considered the structure of management functions and the main approaches, it would be useful to talk about the rest. Among them is the situational approach. It appeared in the sixties of the last century. Its supporters suggest choosing management methods, taking into account environmental factors and the situation. The method is effective if it corresponds to the prevailing circumstances.

Currently situational approachrarely used, as preference is given to a systematic and process approach.

Quantitative approach

As soon as the exact sciences developed, this method arose at the same time. Even the exact date is known - 1950. Why such dependence? The fact is that the achievements of physics, mathematics and computer technology began to be actively involved in management. This is due to the fact that it is much easier to construct virtual models for inventory management, resource allocation, strategic planning, maintenance, and so on, than to introduce a new structure every time, stuffing bumps. Nowadays, in its pure form, a quantitative approach is practically not found. As a rule, it is part of a process or systems approach.

Types of structures

The main types of control structures are distinguished depending on the nature of the connection. This is:

1. Functional.
2. Linear.
3. Matrix.
4. Linear-functional.
5. Multiple.
6. Divisional.

The organizational structure diagram reflects the position of positions and departments that exists in reality. Connections, in turn, are also divided into categories:

1. Linear. We are talking about administrative subordination.
2. Cooperative. Communication is traced between units of the same level.
3. Functional. There is no direct administrative subordination, but at the same time, connections are divided according to the field of activity.

The linear control structure is built in such a wayin such a way that each leader is in charge of subordinate units in any kind of activity. Of the advantages, one can name a rather simple scheme, unity of command and economy. At the same time, the disadvantage is the requirement for the qualifications of managers, it should be high. Now this structure is almost out of use.

The functional structure is remarkable in that it has a close relationship between functional and administrative management. There is no principle of unity of command here, just like cooperation between departments. For this reason, the structure has also practically fallen into disuse.

Linear-functional structure is called a stepped hierarchical structure. In this case, line managers are one-man bosses, and functional bodies help them. It is important that the line manager of the lower level does not report to functional managers, even if the latter are one step higher. The structure immediately gained popularity and was used almost everywhere.

The divisional structure is built in such a way that branches are distinguished either geographically or by type of activity.

About the matrix structure, we can say that there can be several managers over one executor. A similar scheme is often used in enterprises that operate in several areas at once. Since the convenience of the structure is obvious, it is not surprising that it is the matrix structure that replaces the linear-functional one.

Multiple structure is special in that it combines different structures at different levels of management. An example would be whenthe enterprise adopted a branch management structure, and in the divisions themselves a matrix or linear-functional structure can be built. This structure is used to this day and does not lose its popularity.

As you already understood, in order to become a good manager, you need to study science in depth, including the structure of management goals. No matter how good a person is, without knowledge of the theory, it is unlikely that anything will work out. We can advise only one thing - learn the materiel.