Most bureaucratic organizational structures can be divided into functional and divisional management structure.
functionality belong to the oldest and quite often used in practice.They can say, are traditional, and therefore they are called classic.This is the result of the control is divided into separate elements, each of which has the task to manage, that is, it performs a specific function.The functional structure is working effectively in companies of small and medium size.
In large enterprises have for decades used divisional management structure.
word "divisional" comes from the Latin, meaning "split into parts departments."Systematization process takes place on three grounds:
1. By product (good or service).
2. In groups of buyers.
3. By geographic region.
Departments firms operate independently, it is virtually independent organizations which are subject only to the central authority of the company's management.
Grocery divisional structure
necessity of its creation caused by the growing number of large companies and corporations.They enter into new production areas is very different from previous ones.There is the emergence of new administrative divisions which are engaged in a specific product.
Divisional management structure, focused on the customer, consists of separate units.Each of them, in turn, aims to correct him category consumers.Such divisions have almost all large corporations.
regional divisional management structure.
Its creation, as well as the product, due to the rapid growth of corporations.They quickly spread its influence over vast territories, not only domestically, but also abroad.
Depending on which factor is particularly important for the company to ensure its strategic plans, and selected divisional management structure of a particular type, either on the product or by the purchaser, or by geography.
inherent advantages of these structures control:
- primarily contribute to the rapid growth of the company.
- Second, increase the independence of managers.
- Third, increase the degree of responsibility of the administrative board for the production.
- Fourth, enhances knowledge.
- Fifth, create favorable conditions for training senior executives.
Along with divisional structures have advantages and disadvantages:
- First, if there are weak informational connections between departments, possible duplication of activities.
- Second, weak links with the main governing unit, resulting in the senior management of the company often can not keep control of the activities of its business units (divisions), and as a result - a big loss.
deficiencies following reasons: weak and ineffective management of the company, lack of budget, non-specific focus on the desired results.Eliminate the negative aspects as follows: strengthening management by implementing a clear system of incentives, budgeting and automation, having established horizontal communication, a clear distinction between the powers.
manage the company with a similar type must be a person with a democratic leadership style, as he will have to transmit multiple heads of division of powers on which depends the effectiveness of the company's management.Divisional structure can effectively operate not only large but also in medium-sized companies.So shows a current practice.
