Organizational structure design
Organizational structure of management is one of the key concepts of management, which is closely associated with the objective, functions, management process, work of managers and distribution of powers among them. Within the framework of this structure, the whole management process is going on (information flows and managerial decisions making), in which all managers of all levels, categories and professional specialization are involved. The structure can be compared to the framework of building of management system, built with the purpose of all processes being performed timely and in high quality.
Under the management structure a well-ordered totality of interconnected elements providing for functioning and development of the organization as a single whole is understood. It can also be defined as the form of distribution and cooperation of management activities, within which the process of management is being carried out according to appropriate lines (trends) aimed at solving set tasks. There is a list of requirements for the structure of management, which reflects its key value for management. The main of these principles can be formulated as follows:
- Organizational structure of management shall conform to the company’s strategy, its scales and specific character of activities.
- The optimum distribution of work between management bodies and separate employees shall be stipulated, which will ensure creative nature of work and an optimum load, as well as proper specialization.
- Formation of the management structure shall be connected with designation of powers and responsibilities to every employee and management body together with establishing a system of vertical and horizontal connections between them.
- A balance between functions and obligations, from one hand, and powers and responsibilities from the other hand, shall be kept, deviations from which will lead to dysfunction of the management system as a whole.
- Organizational structure of management shall be adequate to social and cultural conditions of organization that influences considerably the decisions regarding the level of centralization and detailing, allocation of powers and responsibilities, level of independence and level of control over chief executives and managers.