Linear functional management structure

Organization management is carried out in accordance with a specific structure. It is developed in the company taking into account the specifics of its activities. Let us further consider what a linear-functional control structure is.

General information

Linear Functional managment structure combines certain principles of administration. Some links of this system are called to command, while others - to help in the preparation of relevant plans, decisions, in the development of specific tasks and issues, to advise. Linear Functional Organizational Structure based on the mine principle. In accordance with it, a specific hierarchy of services is created for each task. Such a system is often referred to as classical or traditional. Linear-functional organizational structure is used in medium-sized enterprises.

Advantages and disadvantages

The linear-functional structure is characterized by the following features:

1. Sustainability.
2. Satisfactory performance within the framework of stable production.
3. Targeting price competition.

The disadvantages of the system include:

1. The difference in goals between units.
2. Weak communication and responsibility for solving a set of tasks for the whole enterprise.

The linear-functional structure is unsuitable in conditions when the external and internal parameters of the company are constantly changing. In such an environment, using this system, an irrational distribution information flows Excessive administration. The latter is especially true for senior managers.

Specificity

The system under consideration allows us to eliminate the shortcomings that the functional organizational structure of management possesses. When used, the purpose of headquarters services is to prepare data for other units. The latter, in turn, based on the information received, make competent decisions or perform administrative or production tasks. The value that the functional structure of the enterprise has will depend on the scale of the economic activity. The specificity of the administration system of the company as a whole will be of no small importance. The larger the company and the more complex the mechanism, the more branched the functional structure of the organization will be. This determines the relevance of the coordination of this link.

Formation Features

Linear-functional structure is a hierarchical management. Within this system, a clear separation of tasks is carried out. At each position - qualified professionals. The functioning of the structure is based on the unity of the distribution of instructions. In accordance with it, only a higher unit has the authority to issue orders. Compliance with this principle ensures the unity of administration. Such a classical functional structure of an organization is formed by constructing an apparatus from mutually subordinate units in the form of a hierarchical ladder. Each subordinate has one supervisor, and each supervisor, in turn, has several employees reporting to him. Elements of the system act as carriers of certain powers.

Description of units

A traditional system may include the following elements:

1. Production sites.
2. Loading and unloading unit.
3. Technical laboratory.
4. The mechanical workshop.
5. Bookkeeping.
6. Electric shop.
7. Point of protection and so on.

The functional structure provides for the existence of a CEO. His competence includes leadership and coordination of all elements of the company. The Director organizes the execution of planned tasks on a specific date, ensures safety during the operation of structures, buildings, premises, the activities of transport and storage facilities. His competence also includes coordination of the proper conduct of the entire technological process of the company. The director is subordinate to the deputy. He manages production sites, ensures the fulfillment of planned tasks, the most efficient implementation of existing production capacities, the rational use of materials and raw materials. The deputy also oversees systematic increasing labor productivity.

Production sites

The functional structure assumes the presence of the heads of units involved directly in the production of goods (provision of services). In most cases, they are called masters of production sites. They not only provide leadership, but also:

• They ensure the fulfillment of planned tasks, the efficient use of production capacities, a systematic increase in productivity, and the economical use of materials and raw materials.
• They create conditions for the development and implementation of established standards for workers, check the quality of work and products, and take measures to prevent the release of marriage.
• Ensure the rational operation of equipment, the uniform activity of subordinates and so on.

Cargo Handling Units

Their leaders organize the accounting of containers in accordance with the rules, analyze the results of its processing. They also develop downtime measures. The duties of the chiefs include:

• Enforcing shipping plans.
• Reception and transmission of notices of the upcoming supply of containers, its readiness for cleaning, etc.

Chief Engineer

He heads the technical departments of the company. His tasks include ensuring the proper condition of the equipment, organizing a system of scheduled preventive repairs. Direct subordination of a specialist may include:

• OT engineer.
• Chief Power Engineer.
• Warehouse Manager.
• Mechanic.

Bookkeeping

Any functional structure of the company implies the presence of this department. The management is carried out by the chief accountant. He, in turn, reports to the director of the company. The responsibilities of the chief accountant are as follows:

• Accounting for incoming finance, inventory and fixed assets, timely reflection on the accounts of transactions associated with them.
• Monitoring compliance with the procedure for registration of primary and accounting documentation, payment and settlement obligations, expenditure of the wage fund.
• Participation in the economic analysis of financial and economic activities according to accounting and reporting to identify internal reserves, eliminate losses of non-production costs, and so on.

Economic department

The tasks of this unit include the preparation of long-term plans (quarterly and annual) of financial and economic activities, the development of projects by the volume of work and salary for production sites. The head of the department is a senior economist. His responsibilities include:

• Analysis of the former and the establishment of new prices for the reception, storage, shipment of raw materials and products.
• Timekeeping, development of local standards for production and time, familiarization of employees with them.
• Monitoring compliance with established indicators, etc.

HR department

This unit maintains records of the personnel of the company, its divisions, and approved documentation. The department is led by a human resources inspector. He must:

• To arrange the reception, transfer, dismissal of employees in accordance with the Labor Code, instructions, regulations and orders of the director of the company.
• To study the movement and reasons for staff turnover, to participate in the development of measures to stabilize the state.
• Supervise the implementation of labor discipline and compliance with the internal regulations of the company, etc.

System analysis

The functional structure cannot remain unchanged with constant economic transformation. In this regard, the system requires some adjustments. The hierarchical organization of management is effective in large companies where it is necessary to ensure the clear and coordinated work of a large staff of employees engaged in activities to achieve the common goal of the enterprise. Such a system allows mobilizing the energy of people and cooperating their work for the implementation of complex projects in large-scale and mass production. The functional structure provides ease of administration, coordination of actions.