Building the organizational and functional structure of the company.

Topic 7. Analysis and modeling of the functional area of IS

The theory and practice of management suggest two types of management structures: hierarchical and organic, the main characteristics (Fig. 1.)

Figure 1-Characteristics of hierarchical and organic management structures

Each of these types of control structure includes several types of control structure. The hierarchical type of structures includes: linear, functional, linear-functional, divisional organizational structures of management.

The organic type of structures includes: project and matrix management structures. Let us give a detailed description of each type of management structure.

Let us first consider the hierarchical type of organizational management structures:
a) The linear organizational structure of management is characterized by the fact that at the head of each unit is a leader, endowed with all powers and exercising sole leadership of subordinate employees (Fig. 2).

Figure 2-Linear organizational structure of management

The advantages of a linear organizational management structure include:
1) simplicity of the organizational structure;

2) full responsibility of the line manager for the results of work;
3) unity and clarity of orders;

4) coordination of actions of leaders.

The disadvantages of the linear organizational structure of management are:
1) the presentation of stringent requirements for the manager, who must have exceptional competence in all areas (accounting, production, sales, etc.);

2) the concentration of power in the hands of the ruling elite.
b) The functional organizational structure of management involves the division of the organization into separate elements, each of which has its own clearly defined tasks and responsibilities (production, marketing, finance, research, etc.) (Fig. 3).

Figure 3-Functional organizational structure of management

The advantages of a functional organizational management structure include:

1) exclusion of duplication of managerial functions;

2) high competence of specialists responsible for the implementation of specific functions;

3) release of line managers from solving a number of special issues.
The disadvantages of the functional organizational structure of management are:

1. difficulties in maintaining constant relationships between various functional services;

2. duration of decision-making procedures;

3. excessive interest in the implementation of the goals and objectives of “their” units.
c) The linear-functional organizational structure of management implies the “mine” principle of building and specializing the management process according to the functional subsystems of the organization (marketing, production, finance, etc.) (Fig. 4). For each of them, a hierarchy of services is created that permeates the organization from top to bottom.

Figure 4-Linear-functional organizational structure of management

The advantages of a linear-functional organizational management structure include:

1) better preparation of decisions and plans related to the specialization of workers;

2) the release of the main line manager from a detailed analysis of problems;

3) increasing the validity of the management teams of the line manager by attracting specialists.

The disadvantages of the linear-functional organizational structure of management are:

1. insufficiently clear responsibility, because the employee who prepares the decisions, as a rule, does not participate in their implementation;

2. the impossibility of a quick response to changing environmental conditions;

3. danger of conflicts between linear and functional structures;

4. lack of flexibility in the relationship between departments of the organization due to the use of formal rules and procedures, which affects the speed and timeliness of management decisions;

5. too developed system of connections along the vertical, i.e. tendency to overdo it.
The divisional organizational structure of management assumes the functioning of several independent divisions (enterprises) spatially separated from each other (Fig. 5). Each of them has its own field of activity (works with certain groups of customers, geographic regions or releases certain products), independently solves current production and economic issues, while all divisions are united with each other and with a common center by industrial, financial and administrative ties.

Figure 5-Divisional organizational structure of management

The advantages of the divisional organizational structure of management include:

1. focus on the source of profit;

2. decentralization, which increases the independence of decisions made and their validity;

3. coordinated management;

4. ensuring a closer connection between the producer and the consumer;

rapid response of the organization to changes in the external environment and adaptation to new conditions.

The disadvantages of the divisional organizational structure of management are:

1. complexity due to a large number of levels of hierarchy, the need to create intermediate levels of management to coordinate the work of departments;

2. duplication of management functions at different levels and an increase in the cost of maintaining the administrative apparatus.

Now we characterize the organic type of organizational management structures:
a) The project organizational structure of management is formed if the organization develops a new project, and involves the creation of a temporary unit (project group) working on a temporary basis (Fig. 6). It consists of the necessary specialists, including managers, who, upon completion of the project, move to a new project team or return to their old place of work.

Figure 6-Project organizational structure of management

The advantage of the project organizational structure of management is the maneuverability and flexibility of the strategy.

The disadvantages of the project organizational structure of management include:
1) dispersal of personnel in different directions when working on several projects;
2) the complication of maintaining and developing the activities of the organization as a whole.
b) The matrix organizational structure of management is a synthesis of project and functional organizational structures, it is formed based on a project (Fig. 7). The project manager creates a team, usually consisting of representatives of functional departments. In this case, the principle of double subordination of the performer is used: firstly, to the direct head of the functional service, which provides staff and other assistance to the project manager; secondly, the project manager. With this approach, the project manager has two groups of employees subordinate to him: permanent members of the group and employees of functional departments who report to him temporarily and on a limited range of issues.

Figure 7-Matrix organizational structure of management

The advantages of the matrix organizational structure of management include:

1. increasing the efficiency of personnel use;

2. flexibility of the organizational structure;

3. increasing the competence of decision-making at various levels;

4. ensuring a high target orientation of the work and its rapid adaptation to changing conditions.
The disadvantages of the matrix organizational structure of management are:

1. dualism of management;

2. the possibility of conflicts in temporary groups;

3. the complexity and bulkiness of the structure, its poor adaptability to work in critical situations.
In practice, the considered types of organizational structures can intersect and complement each other. Some of the constituent units of the organization remain stable, others can be created or abolished as needed.

The chief physician is at the head of the united hospital. He has deputies for the medical, outpatient and administrative departments. The structure of the hospital includes: admission department, department of differential diagnostics, treatment and diagnostic departments (therapeutic, surgical, neurological, physiotherapy, laboratory diagnostics, etc.). May also include specialized departments and wards.

Hospitals are differentiated by types, categories and profiles. Direct treatment of patients is carried out by medical residents, whose main elements of work are keeping a medical history, diagnosis and treatment, examination of working capacity, rehabilitation and rehabilitation treatment, consultations. There are up to 20-25 patients per resident. Among the medical records maintained by hospital residents, the main ones are an inpatient card (medical history), a patient record sheet, a card of a person who left the hospital, a sick leave certificate, various registers, etc. WHO proposes to divide the functions of the hospital into treatment and rehabilitation, preventive, educational and research.

As a rule, patients are admitted to hospitals in the direction of doctors from outpatient clinics, clinics, dispensaries and other out-of-hospital institutions, and on an emergency basis they are delivered and sent by the “Ambulance”. Some patients (up to 5%) come to the hospital “by gravity”, that is, they go to the emergency department, which, if necessary, hospitalizes them. During hospitalization, doctors of the polyclinic draw up special documents (referral for planned hospitalization, which indicates the need for an inpatient examination and outpatient examination data)

Figure 8- Structure of the hospital.

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