The linear-functional management structure is a special system in which the functions of managers are divided into several large groups:
- obligatory for execution;
- recommendatory for implementation at the enterprise.
Such a variable model should be based on several mandatory principles. Let's consider them in more detail.
Firstly, the linear-functional organizational structure of management implies the presence of a common leader and unit heads (economic, technical, legal, etc.), who should share their impact on employees in accordance with the tasks assigned to them.
Secondly, the senior manager is obliged to carry out only a linear effect on all employees of the company. But functional superiors must have a technological impact.
Thirdly, the linear-functional organization management structure implies that any contractor will be able to transfer part of his work to a lower level. In this case, he acts in relation to him as the immediate supervisor.
The linear-functional management structure has the following advantages:
- there is an opportunity to attract more competent, qualified and erudite specialists in a certain field to the leadership;
- there is efficiency in making decisions in unusual situations;
- the presence of a rapid increase in the professionalism of managers performing functional roles;
- the possibility of obtaining consistent orders, orders and assignments;
- the presence of full personal responsibility for the result of their activities.
The linear-functional management structure has the following disadvantages:
- difficulty in coordinating the actions of all departments included in the general system of the enterprise;
- the presence of a large load of the leader and his assistants on basic issues of management and production.
As a result, there is a decentralization process within the framework of this structure, which leads to the fact that responsibility and rights are more in-depth able to be divided between various bodies; technical guidance and practical developments; departments for the procurement of materials, spare parts and raw materials, sales, production and so on.
The linear-functional management structure is typical more for such enterprises where there is a steady release of a huge number of homogeneous products.
It is effective when there is significant economies of scale. This will be relevant in a situation if the modern market is at the moment a single whole.
But there are situations when this structure at the enterprise is absolutely unacceptable:
- the presence of expanding diversification of production;
- there is a complication of external and internal relations;
- technical innovations are being introduced;
- there are serious difficulties in the market for products due to the fierce struggle for a "place in the sun";
- growth in the size of the enterprise;
- expanding the range of products and their market.
The linear-functional structure in such a situation, due to the significant fragmentation of responsibility and rights for specific functions, can lose the ability to adapt and get used to new conditions, reacting to the appearance of new changes. Since conflicts in the management process begin to arise due to the identified priorities, decision-making is delayed for a long time. As a result, there is a lengthening of communications, deterioration of interactions between departments, and the performance of control functions is hampered.