Governance Structures

The activity of any business entity is impossible without the existence of a specific management structure. There is a wide variety of forms of building a management scheme in an enterprise. This is due to the differences in the spheres of activity of economic entities, the volume of output and territorial location. Depending on the nature of the internal relationships established, two forms of the management structure are distinguished.

The first type of organization of the leading sector, called hierarchical, is based on the principles of subordination of the various levels exercising administrative functions. Each sector of such a management structure corresponds to certain levels of job responsibilities and its specific characteristics. A hierarchical type can be represented by one of three forms of organization. They include:

1. Linear management structure. With this form of organization, each of the supervisors controls the work of the subordinate unit independently. This scheme is very simple and effective enough when the list of tasks to be solved is limited.

2. Functional structure. It is a specific type of subordination, when lower-level units are managed by technical, planning, financial and other sectors. Administrative instructions with this form are the most qualified. The functional structure of the organization has its drawbacks. The most basic of them is the inconsistency of the tasks received. In addition, units before which certain questions are raised can not always determine their order. Currently, this scheme is used very rarely.

3. The mixed management structure. It combines elements of both a linear and a functional scheme. With this form of management, managers control and approve decisions that resulted from the work of subordinate units. However, if the list of issues is very extensive, then this scheme is not applied at the enterprise. A wide variety of tasks makes the work of the head quite difficult. To avoid this, this scheme is simplified. At the same time, functional-type divisions direct subordinate subdivisions on issues within their competence.

Which management structures will be most effective at certain enterprises is determined taking into account the scale and nature of production, as well as the type of business entity. The most convenient scheme of leadership in a small organization is without a shop. With this form, each sector of the production process is subordinate to the master. Directed directly by the director. At a larger enterprise, the post of senior master is introduced, which is responsible for the operation of several sites.

If the enterprise has a large scale, then the most convenient form of the management structure is the shop floor. At the same time the chief of this main production unit directly directs the masters, submitting to the director.

There is also a housing structure of the management structure. It is used in its work particularly large enterprises. In her case, the business entity is divided into corps. Those, in turn, split up into workshops and plots in them. There may be enterprises and mixed schemes of management structures.

The second type of organization management is the most modern. An organic, or adhokratic management scheme has the ability to easily adapt to changing conditions due to changes in the external and internal factors of the organization. So, for example, the organizational structure of a store in the conditions of the modern market should clearly define the tasks, the solution of which is the responsibility of a particular employee, taking into account the purpose of the firm's activity. The management scheme of trading companies should react to all changes in market conditions.