Organizational relations in a management system should be understood as a peculiar form of separation of powers. They are called upon to fully ensure the fulfillment of both general and specific managerial tasks. These relationships should preserve the integrity of the vertical and horizontal relationships, as well as the separation of functions related to management. Consider their classification and other important aspects of the topic.
Coordination relations in management
The vertical distribution is revealed through the number of management levels and their directive relationships, subordination. If we talk about horizontal separation, then it is determined with the help of industry characteristics and can be focused on auxiliary processes of production in the industry, spatial factors of a manufacturing enterprise or manufactured products.
In these cases, organizational and legal relations in the management system are regulated through the distribution of specific tasks and functions between all structural units of the enterprise. In addition, the organizational structure of the company largely determines competence in terms of solving some problems and the interaction of individual components. This is how the hierarchical structure of the company is formed.
Concept and definition
Organizational relations are nothing more than interaction or opposition that arises between the components of an organization during its creation (inside or outside it), as well as during its functioning, destruction or reorganization. Coordination relations are of three levels:
- Mutual destruction.
- Common sense.
- Interactions designed in advance.
Organizational and legal relations include interactions, influences and counteractions during the formation, work, reorganization, as well as the termination of the organization. Today, a certain classification of coordination relations is relevant. It is advisable to consider it in a separate chapter.
Forms of Organizational Relations
Today it is customary to single out processor and structural coordination relations. The following components should be attributed to the latter:
- Interaction.
- Impact
- Counteraction.
Organizational and economic relations of the processor plan include the following elements:
- Single and mass relations.
- Submission and equality.
- Independent and dependent interaction.
- Random and permanent relationship.
- Parallel and serial contact.
It is worth noting that the relations that arise between organizations can be described as different forms of cooperation, respectively, between independent structures. When firms cooperate and to a certain extent adapt to each other in terms of their activities and resources, they become interconnected with each other.
Relations between organizations
In a general sense, the development of relations between organizations can be equated with an increase in their awareness of the activities of partners, as well as an understanding of how exactly companies interact with each of the counterparties. It should be noted that relations arising between organizations cannot be characterized as homogeneous. They include various forms of cooperation, among which it is worth noting strategic alliances, joint ventures, research consortia, as well as entry into the supply chain, strategic partnership and others. In organizational relations of such a plan, there are two key trends: the development of the existing interaction on purchase and sale to a closer, long-term one, and the establishment of relations with new suppliers through outsourcing of those types of activities that were previously carried out in the company.
Relations arising between organizations can be viewed from two perspectives. The first involves bilateral interaction between collaborating firms, in most cases targeting the same consumer group. The second position implies the existence of peculiar networks in which the interaction between the same structures cannot be analyzed in isolation from their relations with other companies that are part of a single network.
You need to know that the interdependence of organizations usually leads to the effect of the network. In accordance with it, changes in relations arising between a company and, for example, one of its suppliers, can significantly affect relations with other suppliers and customers. It is worth considering the situation when any interaction of the company with other network participants is influenced by events that occur in this network. Such interpenetration of structures presents fundamentally new requirements for the formation and further maintenance of a management accounting system.
Relationships within the organization
Organizational and economic relations arising within the structure mediate the internal hardware work on the internal organization of activities of all bodies of the management system, and in all areas of state functioning. That is why they are often called intra-device relations of the administrative-legal plan (as opposed to external management interaction).
Intra-organizational intra-organizational work is considered to be an obligatory component in the implementation of any kind of state activity, whether it is the executive-managerial administrative work itself or judicial, legislative, prosecutorial and so on. It is auxiliary in relation to the key activities of the relevant structure (the exercise of executive power in terms of the external management work of the body, prosecutorial supervision, justice, legislation, etc.), but without it the implementation of the main one would be impossible.
Organizational Chart Components
The system of organizational relations in the company assumes the existence of an appropriate structure. Among its elements, it is important to consider the following:
- An independent structural department is an administratively separate part that performs one or a number of managerial functions.
- The management link is nothing more than one or a number of units that are not necessarily separate in the administrative plan, but that perform certain management functions.
- By a control cell it is necessary to understand an individual employee in the management sphere or an independent structural department that performs one or a number of special management functions.
It is worth noting that the formation of the organizational structure of the company is based on management functions. It is determined by the principles of the secondary nature of the managerial body and the primacy of the function. The main difference here is the pyramidal nature, in other words, the presence of several levels of control.
Organizational Process and Organizational Relations
As it turned out, individual employees act as components of the structure of almost any company. It can also be units or other management units. Organizational relations in the organization are supported, first of all, due to communications (connections), which are usually divided into vertical and horizontal. The former are determined by the nature of the agreement. As a rule, they are single-level. The main purpose of such relations contributes to the most effective interaction between company divisions in the process of solving problems arising between them.
Vertical communications (in other words they are called subordinate, hierarchical relationships) is nothing more than the interaction of leadership and subordination. It is worth noting that the need for them appears with a hierarchical management (in other words, the presence of several management levels). These communications serve as channels through which reporting and administrative information is transmitted.
Relations in the management structure can be functional and linear. The latter are organizational relations in which the director exercises direct control over subordinates. A functional variety of communications is associated with subordination within the implementation of a certain managerial function. It is advisory, advisory in nature.
Relationships must be effective!
For proper management of organizational relations, it is important to follow certain principles of formation of the organizational structure of the company, as well as performance criteria:
- The principle of diversity: the management structure should include components that, in their quality and quantity, are able to adequately respond to changes in both the external and internal environment of the company.
- The principle of complementing from the outside: a complex effect on the system of environmental factors forms the uncertainty of the regulatory state of the system to established objective requirements. It is proved that the certainty (adequacy) of the state in complex and large systems does not exceed 80 percent: in 20 percent of cases, the system alone is not able to give a competent reaction to the situation when it does not have certain reserves.
- The principle of emergence: the more complex and larger the system, the higher the likelihood that the properties and goals of its components will differ from the properties and goals of the system itself.
- Feedback principle: the exchange of information between the managed entity and the management entity must be ongoing. As a rule, it is built in the form of a closed loop.
Management structure optimization
The basic task of competent construction of the structure of organizational relations within the company is the optimization of management departments. Regardless of whether the existing organization is being reformed or being designed, it is necessary to fully ensure its structural compliance with the established requirements of effective management.
It is also important to note the consideration of internal and external environmental factors of the company, which are determined by the situational nature and are classified into the following groups:
- state of the environment;
- the size;
- technology of work in the company;
- strategically choosing the head of the organization in accordance with its goals;
- employee behavior.
In the process of creating a project, organizational and managerial relations play an important role. The design process is functionally interconnected stages of the project. It is advisable to include pre-design activities, detailed design and technical design. Each of the steps presented assumes a specific description of the actions.
Popular organizational structures
To date, there are a number of legal forms of relations. Among them, it is important to note the following management structures:
- Linear In accordance with it, the management system is distinguished by unity of command at all existing levels. In this case, such a construction principle as a vertical hierarchy is appropriate. Among the advantages of this form, it is important to note the effective use of the central administrative apparatus, the increased degree of control, centralization and coordination of the actions of the management plan, as well as the coordination of the interests of independent management departments. The main disadvantages of the structure are the following points: a large amount of time for making managerial decisions, small initiative at the subordination levels, and a delay in the growth of managers' qualifications.
- Line headquarters. It is a linear form, supplemented by specific units involved in the preparation of management decisions. These units do not have subordinate management levels. They do not make decisions, but analyze existing options and the corresponding consequences of decisions for a particular leader. It is customary to classify the headquarters apparatus as follows: the servicing, advisory and personal apparatus (in other words, secretaries).
- Functional. This form is based on subordination in accordance with the areas of management activity. Here, each employee has the right to give instructions regarding issues within his competence. Among the main advantages of the approach, it is worth noting the effectiveness of management due to the highly qualified staff, central control directly over decisions of the strategic plan, the release of line level managers from solving many special issues, as well as a significant expansion of their capabilities related to operational production management. In addition, the delegation and differentiation of current management plan decisions plays an important role. Among the shortcomings of the structure are difficulties in coordinating departments, the narrow specialization of employees, and the limited opportunities that are provided for the development of managers.
Conclusion
So, we examined the types, structure and characteristics of organizational relations. In conclusion, it should be noted: in addition to the above forms of coordination relations, there is divisional, matrix, as well as design. In practice, they are used less frequently.