Adaptive management structures: types and fundamentals of functioning

Since the 1960s, almost all organizations have begun to develop and put into practice a completely new, more flexible organizational structure. This process was aimed at reducing bureaucracy in order to rapidly adapt to changing external conditions, including new advanced technologies. Structures of this type have been called adaptive management structures. It can be briefly said that such structures can be quickly and simply changed by the method of "adaptation" to the changing external environment and to the changing needs of the organization.

Concept

Adaptive management is an approach that uses a set of different methodologies, known as flexible techniques and tools used to manage complex and innovative systems.

Flexible adaptive management structures are characterized by constant cooperation with the client, therefore the application framework is not strictly defined, and the company itself is divided into smaller parts, the so-called functional capabilities (units). Company managers also often make changes and corrections in accordance with the requirements and assessment of the client, focusing on work on the task entrusted to them.

Quick adaptation and openness to changes in the company is the basis of the adapted structure methodology. A separate stage of the company’s functioning does not stand out, as in traditional management.

Operation basics

A dynamic environment, as well as changing customer requirements, require short-term planning and the commitment of the entire team. Due to the lack of a clear organizational structure, employees are expected to have a high level of discipline and interaction skills. The company manager acts as a mentor. Teams are limited to only a few dozen people, and their characteristic features are flexibility, a high level of cooperation and significant efficiency.

Individualism is another aspect that stands out in flexible methods. In this case, standardization is abandoned. A characteristic feature of the adaptive management structure is a significant reduction in the number of documents. Flexible methods provide a number of ways that you can start functioning without confidence in achieving your goals. They also offer methods of organizing tasks in the company in order to ensure that the team performs appropriate actions in the management process.

The methods proposed as part of an adaptive management structure are not suitable for all types of organizations, especially very large ones, which require significant technological costs.

Structural Characteristics

The basis for the functioning of adaptive management structures is characterized by:

• lack of strict bureaucratic regulation of managerial work;
• lack of deep specialization;
• certain management levels;
• flexible management structure;
• the decentralized nature of the decision-making process.

These types of structures can be compared with others in a number of ways.

Compare adaptive management structures with divisional types. The former will be more flexible and adaptable to changing industrial and environmental requirements.

As a result, the basis for the functioning of adaptive management structures is characterized by the following relevant features:

• focus on the operational implementation of complex projects, programs;
• solving difficult issues;
• ability to change shape relatively simply and painlessly;
• quick adaptation to the changing life cycle of the company (i.e., adaptive structures are usually created temporarily to solve certain problems, in order to carry out various programs and projects);
• the formation of governing bodies on a temporary basis.

Formation Basics

Below is a list of the main goals and principles that determine the use of adaptive methodologies in the framework of company management:

• flexibility and adaptability in relation to dynamically changing needs and expectations of customers (hence the term “flexible”);
• creating valuable and innovative solutions for both the company and consumers at every stage of management;
• minimization of costs due to the reduction of production process schedules;
• focus on members of the management and management team;
• increased motivation among employees without stress;
• close cooperation with the client;
• simplicity and self-organization of the management team;
• customer satisfaction due to the speed and regularity of the processes;
• risk minimization.

Strengths of the adaptive structure

The strengths of the adaptive organizational structure of management include the following factors:

• Adaptive management - constant close cooperation with the client, despite the lack of instructions on how to achieve the goals of the company. All this attaches great importance to a high level of customer satisfaction and is aimed at providing maximum benefits for the business.
• Easy adaptation and quick management changes.
• Unlike traditional management, there is no need to specify the full range of tasks during the initial period of management processes.
• The level of independence of the participants in the process, who take responsibility for the tasks performed, is increasing.

Weaknesses

Among the shortcomings can be identified such moments:

• Large companies and their projects are still being implemented using traditional management models, since flexibility in adapting to changes is not required, and project conditions are not so volatile.
• Lack of focus on task control.
• The management team should have extensive experience, high skills and a high level of motivation, which is often difficult to achieve.
• It works only in small teams.
• All the attention of the management team is focused on achieving the final result. Other aspects of management, such as market research, the selection of appropriate team members and special training, risk management, legal and formal aspects, and others that are implemented in the traditional methodology, are ignored.

Varieties

Among the adaptive organizational management structures, the following types are distinguished:

• matrix
• design;
• target-oriented;
• target software;
• structures that are formed on a group approach (team, team);
• networked.

Consider the features of each of them.

Adaptive management structures include matrix structures. Their feature is the separation of rights of managers managing divisions. The specificity of this structure is that each employee has two managers with equal rights at once. One supervisor is an immediate functional service manager. He has a full range of powers to manage the tasks assigned to the company. The second leader is the project manager. The system of double subordination of an employee within the framework of functional and project management characterizes the features of this structure.

Among the types of adaptive management structures, design structures are noted. They represent the ability to manage complex activities. Within these structures, coordination and integration of managerial impact is required. Characteristics are severe restrictions on the timing, cost, quality of work. The use of these structures is possible in the development and implementation of a comprehensive organizational project.

Among adaptive types of control structures, the brigade form is distinguished. With this form of organizational structure, teams of 10-15 people are formed at the enterprise, including designers, technologists, economists, workers to perform a specific task and manufacture products.

Adaptive organic management structures include problem-target management. It is formed according to the following principles:

• target approach means forming a structure according to the goal tree;
• the principle of complexity in calculating the number of managers;
• orientation to the problems of the company, that is, the formation of departments in accordance with the identified difficulties;
• targeting specific goods (product markets);
• mobility and adaptability to change.

Such a structure can be formed on the basis of the quantity and depth of the principles and requirements for the formation, based on the tree of goals of the company.

The program-targeted adaptive structure of enterprise management is practically a double (matrix) structure - it combines the elements of a multifunctional and linear structure, in other words, it implements the principle of double subordination (linear manager and project service manager). A multifunctional design unit is usually created for a specific new purpose as temporary or permanent. This unit allows you to concentrate the efforts of all areas of work of the company’s divisions on achieving the set goal, work program to achieve the specified task.

The main goal of the design departments is the introduction of horizontal relationships for the interaction of different departments in the process of their work to implement the plans that are implemented by these design departments. At the same time, line departments produce several projects under technical supervision at once. Administrative management is simultaneously carried out with the introduction of senior line managers.

The right of design departments to make decisions and implement technical recommendations is based on the provision of the appropriate powers of the governing body of the company.

Program-targeted management structures due to the presence of technical managers for each project have the highest productivity and ability to realize difficult tasks.

The main condition for the successful operation of the program-targeted management structures is the exact distribution of power between the design and linear departments.

Advantages of the structure:

• the ability to quickly convert to changing criteria as part of project changes;
• interaction between different departments to achieve the best goal;
• centralization of linear control functions.

The disadvantages include:

• multi-step decision making;
• different subordination of program executives;
• high resource intensity.

The organizational structure of the network is a hybrid solution that combines a divisional and matrix management structure.

Common examples are chain stores with a common corporate identity, basic assortment, a single information system, etc.

Networks can be combined by brand, corporate identity, information system, sellers, product range, staff training programs, etc.

A prerequisite for the network to work is centralized management, centralized multifunctional structural departments for the main issues of work.

Networking is a solution that allows you to get a productive version of the distribution of powers and connections, as well as autonomy and the required centralization. Network organizational structures in geographically broken companies with a single corporate identity are more productive, which ensures the organization’s fame regardless of where it is located.

Comparison with mechanistic structures

The differences between adaptive and mechanistic management structures of the organization are presented below.

Comparison with bureaucratic structures

To compare bureaucratic and adaptive organizational management structures, we use the table below.

Conclusion

The concept of adaptability is associated with the problem of ensuring the flexibility of the management system while maintaining the efficiency parameters of a business entity.

In the framework of modern ideas about control structures, adaptive is understood to mean those that more closely correspond to dynamic environmental conditions. In this sense, they are considered more adapted to vibrations.

The main features of organic adaptive management structures:

• the ability to easily change shape and instantly adapt to external conditions;
• accelerated implementation of projects and quick solution of tasks;
• time limit;
• controls may be temporary.