Linear and functional structure of the enterprise

Every entrepreneur, when creating a company, should think about what kind of organizational structure will be inherent in his company. It should be borne in mind that every employee should understand what department he works in, what his tasks are and what his manager is. A businessman should monitor the performance of not every employee, but for those who are responsible for this or that job.

Organizational structure of management is the composition, subordination and interrelation of different departments, as well as individual officials who perform the functions of management assigned to them .

The structure of management is made up of links and steps. The link is a separate subdivision, the functions of which are strictly defined and limited. A step is a set of links that are on the same level in the management hierarchy.

Organizational structures are of several types. The subject of today's discussion is a linear-functional structure.

Among the advantages of this system are the following:

- professional and business specializations are stimulated;

- the responsibility of the chief for the final result of the organization's management is increased;

- the productivity of different kinds of labor increases;

- conditions and opportunities for career growth are created;

- not very complex control of the activities of employees of all divisions.

The linear-functional structure has the following drawbacks:

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

- coherence of actions between subdivisions becomes more complex;

- the process of making and implementing decisions is slowing down;

- the structure lacks flexibility, since the basis of functioning is a set of different rules and principles.

Linear-functional control structure is a mixture of linear and functional systems, which absorbed the advantages of the first and second. It is formed by the chess principle of specialization and construction in the management process. Linear and functional structure of the enterprise is formed by the types of activity, where the business units are created. And the functional units are divided into even smaller ones that perform a certain range of tasks.

Linear-functional management structure at the moment is the most common and is used by small and medium enterprises by enterprises. Basically, such firms are engaged in the production of a limited range of products and work with the stability of external conditions. Large organizations use a divisional approach to management.

Linear-functional structure is based on system-forming relationships. These are vertical, among which are linear (or basic) and functional (or additional). Through the first, subordinates are managed. The manager determines which tasks will be decided and by whom exactly. By means of functional divisions of the highest level give instructions to the lower ones.