What influences the choice of the sphere of control. Internal variables. Specialized division of labor
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Integration is the possibility of coordinated actions of many people
The need for coordination, which has always existed, becomes truly urgent when work is clearly divided both horizontally and vertically, as is the case in large modern organizations. If management doesn't put in place formal coordination mechanisms, people won't be able to get the job done together. Without appropriate formal coordination, different levels, functional areas and individuals can easily focus on their own interests, and not on the interests of the organization as a whole.
That. we can say that the process of integration is a process of achieving unity of efforts of all subsystems of the organization to achieve its objectives and goals.
The unity of efforts does not give the departments of the organization the opportunity to pull it in different directions, disperse its forces and capabilities and achieve the overall goals of the organization.
In order to effectively integrate the organization, senior management must constantly keep in mind the overall goals of the organization and just as constantly remind employees of the need to focus their efforts precisely on common goals. It is not enough that each department and each employee of the organization will work effectively on its own. Management should view the organization as an open system.
The pattern of the integration process is that the more integrated the firm, the more successful it is.
Methods for achieving effective integration. For integrated organizations operating in a sustainable environment and using mass production technology, methods related to the development and establishment of rules and procedures, hierarchical management structures are suitable. Organizations operating in a more volatile environment and using a variety of technological processes and technologies for the production of individual products, it is often considered more appropriate to integrate through the establishment of individual relationships, the organization of the work of various committees and the holding of interdepartmental meetings.
If integration implies the unity of efforts and goals, then the process of differentiation, on the contrary, implies the distribution of these efforts and goals within the organization among its various components.
Differentiation should be maximum within the framework of such organizations whose activities are based on creativity (for example, some research institute),
The regularity of the process of differentiation is that the more complex the environment of the organization, the greater the differentiation.
The concentration of production and the enlargement of the firm contributes to the differentiation of functions between different levels of the management system.
Thus, for example, the functions of long-term planning and technical re-equipment should be dealt with centrally at the upper levels of the management system, and operational management issues at its lower levels.
Differentiation of problems solved centrally and decentralized is reflected in the structure of the administrative apparatus. Thus, the differentiation of the development of planned indicators at one time led to the expansion economic services enterprises.
The specialized division of labor is directly related to the processes of integration and differentiation.
In order for an organization to achieve its goals, tasks must be coordinated through a vertical division of labor. The vertical scheme is shown in the figure.
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The head of the upper level manages the activities of the leaders of the middle and lower levels, that is, in a formal sense, he has more power and status. Vertical differentiation is related to the organization's hierarchy in depth. The more steps there are between the highest level and operational workers, the more complex this organization is. The vertical structure consists of levels of power built in a hierarchical order. Power is distributed according to positions and the leaders who occupy these positions. The figure also shows the position of workers in a vertical structure. The goal is seen as a guide for the flow of connections and power.
Horizontal differentiation reflects the degree of division of labor between individual units. The more different areas in the organization that require specialized knowledge and skills, the more horizontally complex it is. Horizontal specialization is aimed at differentiation of functions and covers: the definition of work and the definition of the relationship between different types of work that can be performed by one or many different people. The horizontal division of labor means that the manager top level has direct control over three managers: the middle manager (production), the middle manager (accounting), and the middle manager (marketing). In turn, RSOs (mid-level managers) have direct control over the respective RNUs (lower-level managers), and those directly over a certain number of performers. This can be seen as functionalization (a variety of tasks that must be completed in order to achieve the goals of the organization), as a result of which certain specialized units are formed.
Picture. Diagram of the horizontal division of labor.
Sphere of control.
The number of persons reporting to one leader is the area of control. The scope of control is an important aspect of organizational structure. If a fairly large number of people report to one leader, then we are talking about a wide sphere of control, which results in a flat management structure. If the scope of control is narrow, i.e. Few people are subordinate to each leader, we can talk about a multi-level structure. In general, large organizations with a flat structure have fewer levels of management than organizations of comparable size with a tiered structure. There is no perfect sphere of control. Many variables within the organization itself and in external environment can influence it. Moreover, neither the scope of control nor the relative "height" of an organization's structure is a function of the size of the organization.
Every organization has an internal and external environment.
Internal variables are situational factors within an organization.
The main variables within the organization itself that require management attention are goals, structure, tasks, technology, and people.
Goals- specific end states or desired outcome that the group seeks to achieve by working together. Different organizations have different goals. For example, in order to make a profit, "business" must formulate goals in areas such as market share, new product development, service quality, leadership training and selection, and social responsibility. Non-Profit Organizations, having a variety of goals, pay more attention to social responsibility.
The goals of the departments should make a specific contribution to the goals of the organization as a whole, and not conflict with the goals of its other departments.
The structure is an internal variable.
The structure of an organization is a logical relationship between levels of management and functional areas, built in a form that allows you to most effectively achieve the goals of the organization.
There are two main concepts of structure:
- Specialized division of labor
- Sphere of control
Specialized division of labor
In most modern organizations, the division of labor does not mean a random distribution among the available people. characteristic feature is a specialized division of labor - the assignment of this work to specialists, i.e. for those who are able to perform it best from the point of view of the organization as a whole.
In all but the smallest organizations there is a horizontal division of labor along specialized lines. If the organization is large enough, specialists are usually grouped together within functional area.
The choice of functional areas determines the basic structure of the organization and to a large extent - the possibility of its successful operation. The efficiency and feasibility of the ways in which work is divided among people - from top to bottom, down to the very first level of an organization - in many cases determines how productive an organization can be compared to its competitors. No less important is how the vertical division of labor is carried out.
Vertical division of labor, i.e. determination of the work of coordination from the direct execution of tasks is necessary for the successful labor work. The deliberate vertical division of labor results in a hierarchy of managerial levels. The central characteristic of this hierarchy is the formal subordination of individuals at each level. The hierarchy permeates the entire organization, descending to the level of non-managerial personnel.
Rice. 5.1. Organization structure
Sphere of Control is an important aspect of organizational structure.
A wide sphere of control is if a fairly large number of people are subordinate to one leader, as a result of which this sphere has a flat management structure.
Narrow sphere of control - few people are subordinate to each leader, i.e. layered structure.
Task is a prescribed job, a series of jobs, or a piece of work that must be done in a predetermined manner and within a predetermined timeframe. Tasks are assigned not to the employee, but to his position. But they are considered as a necessary contribution to the achievement of the goals of the organization. It is believed that if the task is carried out in such a way and in such time as prescribed, the organization will operate successfully.
Tasks divided into three categories:
- work with people (the task of the master);
- work with objects (machines, raw materials, tools);
- work with information (tasks of the treasurer of the corporation).
Rice. 5.2. Interdependence of positions, structure and goals
Rice. 5.3. Flat organization structure
Technology. Charles Perrow describes technology as a means of transforming raw materials - be they people, information, or physical materials - into desired products and services. Lewis Davies offers a broad similar description: "Technology is the combination of skills, equipment, infrastructure, tools, and related technical knowledge necessary to bring about desired transformations in materials, information, or people." Thus, technology is a means of converting materials, raw materials, energy and information into the desired end product.
Tasks and technology are closely related. Completing the task involves using a particular technology as a means of transforming the material.
Rice. 5.4. High organizational structure
Rice. 5.5. The relationship of technology, tasks, structure and goals
People are a central factor in any management model, including the situational approach.
Three aspects of the human variable in the situational approach to management:
a) the behavior of individuals;
b) the behavior of people in groups;
c) the nature of the behavior of the leader, the functioning of the manager in the role of leader and its influence on the behavior of individuals and groups.
Rice. 5.6. Factors affecting individual behavior and performance
Capabilities- these are the individual qualities of a person that contribute to successful activity, can be inherited (intellectual abilities and some physical data), and are also acquired with experience. Predisposition and giftedness are closely related to ability. Abilities are manifested and formed in activity.
Values- these are general beliefs, belief about what is good or bad, or what is indifferent in life. Acquired through training.
Needs- this is an internal state of psychological or physiological feeling of insufficiency of something.
expectations. Based on past experience and an assessment of the current situation, people form expectations about the results of their behavior. Consciously or subconsciously, they decide how likely or how unrealistic the accomplishment of something meaningful to them. These expectations have a significant impact on their current behavior.
Perception is the intellectual awareness of stimuli derived from sensations. Perception determines whether a person feels a need and what his expectations are in a given situation.
Predisposition, giftedness are closely related to ability. Predisposition- this is the available potential of a person in relation to the performance of any particular work. Management disposition is very important in identifying candidates for management training.
Attitude, according to psychologist Daryl Bem, "what we like and what we don't like, like our dislike or attachment to objects, people, groups, or any perceived aspect of our environment." Relationships shape our biased perception of the environment and thus influence behavior.
Rice. 5.7. Relationship of Internal Variables
Sociotechnical subsystems. External variables strongly influence the organization. And the interconnectedness of internal variables would be more correct to consider as a model of internal socio-technical subsystems of the organization. Internal variables are called sociotechnical subsystems, because have a social component (people) and a technical component (other internal variables).
External environment of the organization
The external environment of an organization includes elements such as customers, competitors, government agencies, suppliers and their technologies, financial institutions and sources labor resources, socio-cultural environment relevant to the operations of the organization.
Characteristics of the external environment
- Factor interconnectivity: the strength with which a change in one factor affects other factors
- Complexity: the number and variety of factors that affect the organization in a meaningful way
- Mobility: Relative rate of environmental change
- Uncertainty: the relative amount of information about the environment and confidence in its relevance
Rice. 5.8. Model of the influence of the external environment on the organization
The interrelationship of environmental factors is the level of force with which a change in one factor affects others. Just as a change in any internal variable can affect others, a change in one environmental factor can change others.
The complexity of the external environment is understood as the number of factors to which the organization is obliged to respond, as well as the level of variance of each factor.
Mobility of the environment is the rate at which changes occur in the organization's environment. Many researchers point out that the environment of modern organizations is changing at an accelerating rate.
The uncertainty of the external environment is a function of the amount of information that an organization (or person) has about a particular factor, as well as a function of confidence in this information. If there is little information or doubts about its accuracy, the environment becomes more uncertain than in a situation where there is adequate information and there is reason to believe that it is highly reliable.
The direct impact environment includes factors that directly affect the operations of the entity and are directly affected by the operations of the entity.
Rice. 5.9. Direct impact environment
Suppliers. Organization is a mechanism for transforming inputs into outputs. The main types of inputs are materials, equipment, capital, labor. The dependency between an organization and a network of suppliers providing the input of these resources is one of the most striking examples of the direct impact of the environment on the operations and success of an organization.
Consumers. The very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy its needs. The importance of consumers to business is clear. It is no coincidence that they say: "The consumer is the king in the market."
Competitors is an external factor, the influence of which cannot be disputed. The management of every enterprise understands that if the needs of consumers are not met as effectively as competitors do, the enterprise will not stay afloat for a long time.
laws and government agencies. Each organization has a certain legal status, being a sole proprietorship, a company, a corporation, etc., and it is this that determines how an organization can conduct its business and what taxes it must pay. The state of legislation is often characterized not only by its complexity, but also by mobility, and sometimes even uncertainty.
Organizations are required to comply not only with federal and state laws, but also with the requirements of state regulatory authorities. These bodies ensure the enforcement of laws in their respective areas of competence, and also introduce own requirements often also having the force of law.
Environment of indirect influence- These are factors that do not directly affect the operations of the organization, but still affect them indirectly. The indirect impact environment is usually more complex than the direct impact environment.
Rice. 5.10. Environment of indirect influence
Technology is both an internal variable and an external factor of great importance. Technological innovations affect the efficiency with which products can be made and sold; on the rate of obsolescence of the product; how information can be collected, stored and distributed; what kind of services and new products customers expect from the organization.
The state of the economy affects the cost of all inputs and the ability of consumers to buy certain goods and services; can greatly affect the ability of an organization to obtain capital for its needs.
sociocultural factors. Any organization operates in at least one cultural environment. Therefore, sociocultural factors, among which attitudes predominate, life values and traditions affect the organization.
political factors. Certain aspects of the political environment are of particular importance to leaders. One of them is the mood of the administration, legislative bodies and courts in relation to business. Another element of the political environment is special interest groups and lobbyists.
International environment
Development of international business management. International business management extends to areas of activity that are associated with the movement of resources, goods, services and labor across national borders. Resources that are moved include raw materials, capital, people, and technology. If we talk about goods, then these can be finished components, products, semi-finished products. Accounting, legal and banking activities fall into the category of relocated services. Specialists are also moving - primarily technical and managers.
Varieties of international business
Export. The easiest way to enter international markets is to export products, i.e. its sale to other countries.
Licensing. An enterprise can sell a license to manufacture its products to a foreign company or government through a royalty agreement.
Joint ventures. The organization of a joint venture is that two or more companies or states invest in production facilities. The participants are equal partners in the business and receive profit depending on the share of the block of shares of each in the joint venture.
Direct investment. The strongest commitment to international business occurs when management decides to launch their firm's products overseas and retain full control of production, marketing, finance, and other key functions.
Multinational corporations own and operate businesses in other countries.
Factors of the international environment
Culture. Culture is understood as the dominant system of values, beliefs, customs and prevailing attitudes shared by all in society. Each society has its own culture, the influence of which affects the style of everyday life.
Economy. Some of the economic factors that may affect doing business abroad include: wages, transport costs, exchange rate, inflation and bank interest rates, GNP, taxation and general economic development. There are other factors related to the international environment, although not of a purely economic nature, factors: population size, levels of literacy and professional training, the quality and quantity of natural resources, the level of technological development, and the characteristics of competition.
Laws and state regulation. Just as organizations are subject to domestic laws, firms operating in international markets must reckon with a multitude of laws and regulations.
Political situation. The domestic market is influenced by political events and decisions, similarly, political factors can affect international business operations.
Experience shows that successful organizations predetermine the purpose of the activity, which must be understood and supported by all members of the company. The mission, policy and purpose of the company are defining and contribute to the dynamism and high level of activity, durability, customer focus. If the goal is supported by the whole team, then it is achievable, real.
During the war years, the Australian psychologist Franke, having ended up in a German concentration camp (a Jew), studied the psychology of survival. He found that prisoners who had a clear goal of survival (escape, wait for liberators, etc.) survived more successfully under relatively identical conditions. Goals must be clear and realistic. The success of the organization is ensured by the unity of all employees to achieve the goal; a leader-manager who provides attention to employees and consumers, who, if necessary, knows how to take risks; get everyone involved; development of human and material potential; investing in people.
There is no perfect sphere of control. Many variables within the organization itself and in the external environment can influence it. Moreover, neither the scope of control nor the relative height of an organization's structure is a function of the size of the organization. For example, the Roman Catholic Church and the retailer Syre, despite vast differences in their aims and scope of operations, are known for having a wide scope of control and a structure that has few
The modern imperialism of the US oil monopolies inside the country is not limited to expansion in the field of seizing resources and extracting oil and gas; now the coal and even uranium industries are increasingly included in the sphere of control of the oil monopolies. So, it became known that already in 1968 in the coal industry.
Using the figures for controllable operating profits given above, and assuming that all other figures are within the control of unit managers, the adjusted KOSE and RI can be obtained.
In practice, the main benefits of using standard costs have been in the areas of cost control and profit planning. This, of course, has continued to this day. Today, however, there are many other associated benefits when all cost rate data is consolidated into computer files. The target cost data file can be used with annual and longer-term physical production forecasting to identify potential production capacity and human resources. Capacity problems can be predicted and identified by shop and equipment. Shortage (or surplus) of labor is established in quantitative terms and by skill level.
The sphere of control reflects how the individual looks at the source of the factors that determine his actions. If a person believes that his behavior depends on himself, then in this case he is characterized by the presence of an internal sphere of control (introverts). If he believes that everything depends on the case, external circumstances, the actions of other people, then it is believed that he has an external sphere of control (extroverts). Introverts are more in control of their actions, more results-oriented, more active, more satisfied with their work. They like an informal management style, they like to influence others, but do not like to influence themselves, they like to take leadership positions. Extroverts, on the other hand, prefer formal structures, prefer to work under directive guidance. If they occupy leadership positions, then they widely use methods of force.
Analysis and generalization of the practice of working with organizations, identified methods of tax evasion, development of proposals for improvement legal framework and organization of the work of tax authorities in the field of control over production and turnover ethyl alcohol, alcoholic, alcohol-containing and tobacco products.
When carrying out law enforcement activities to implement the assigned competence in the field of monitoring activities to comply with the legislation governing the circulation of alcoholic and alcohol-containing products, the tax authorities must take into account the general provisions of the procedure for licensing the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products. Under the current legislation, duly registered legal entities and individuals can engage in certain types of activities specified in the law only on the basis of a license - a special permit (right) to carry out this type of activity, subject to mandatory compliance with license requirements and conditions.
Powers in the field of control over cash circulation
Let me give you one last example of those issues that expand the scope of control. Most people don't know when to ask how and when to ask can I. We all understand the importance of being able to make quick decisions. But for most people, this is difficult. Why Because they are already considering what to do. How is a good question, but not when you have to make a decision. Let's go back to my trip to California. Imagine that I would start asking myself at home how everything would turn out there if I left. Do you think that in this case I would decide to move
Should the corporation be organized as a vertical structure with many levels of control, each with a narrow scope of control (i.e., a small number of accountable employees), or as a horizontal one with fewer levels of control, each with a wide scope of control, to give greater freedom of action for subordinates
Determination of the parameters to be assessed, in other words, areas of control.
In this century, the centralized system of banking business has come to be seen not only as a familiar phenomenon, but even as one of the mandatory conditions achievement of the highest levels of economic development . Belief in the desirability of central banks has become universal. AT recent times there was a desire to strengthen the spheres of control through the establishment of international banking institutions, as well as through international cooperation between the already existing central banks of various states. However, there is no systematic study of the reasons for the alleged superiority of the centralized banking system over its alternatives.
State and non-state types of control, despite the similarity of methods, differ significantly in their ultimate goals. The main goal of state control is to maximize the flow of resources to the treasury and minimize public management costs, while non-state (mainly intra-company) control, on the contrary, is to minimize its deductions to. benefit of the state and other costs in order to increase the rate of return on invested capital. At the same time, both areas of control are limited by the legal framework of existing laws.
One of the main problems in the field of control over the use of municipal
Scope of control 2. The level of interconnection of individual departments 3. The level of uncertainty of the tasks being solved 4. The level of complexity of the tasks being solved Wide Narrow -
The number of employees reporting to one manager is the area of control. If a fairly large number of employees are subordinate to one leader, then this forms the so-called flat management structure. If few employees are subordinate to one leader, then a multi-level structure usually arises.
The issues of structure will be considered in detail in the hotel chapter (Chapter 5). When considering internal variables, we restrict ourselves to two concepts related to the management (change) of the structure - a specialized division of labor and a sphere of control.
The scope of control is the number of employees reporting to one manager. If a fairly large number of people are subordinate to one leader, then they speak of a wide sphere of control, which leads to the formation of a flat management structure. If the scope of control is narrow, then we can talk about a multi-level structure. There is no ideal scope of control, since many variables in the organization itself and in the external environment can affect its size.
Explain the role of the specialized division of labor and scope of control (scope of control) in defining and changing the structure of an organization.
No liability shall arise from the failure to perform any of the provisions of this Contract if that failure was due to causes beyond the control of the non-performing Party, such as natural disasters, extreme weather conditions, fires, wars, strikes, hostilities, civil unrest, intervention by the authorities, embargo (hereinafter referred to as force majeure), but not limited to, for a period starting from the moment force majeure is declared by the non-performing Party and ending when the force majeure ends or would end if the non-performing Party took action that she could actually take to get out of force majeure. Force majeure automatically extends the term for the fulfillment of obligations under this Contract. If force majeure lasts more than 6 (six) months, then either Party may terminate this Contract in respect of the undelivered this moment Equipment and/or Goods.
It is clear that the control of the marketing communications manager must extend far beyond the firm's advertising budget. His task is to make sure that both the company as a whole and all its employees inspire target consumers with a sense of confidence in the quality of the product, the high class of service and the profitability of the prices of the enterprise1.
As early as the beginning of the twentieth century, the most astute corporate executives, like Alfred Sloan, Jr. of General Motors and his colleagues at Procter & Gamble, DuPont and Sire, realized that the traditional functional structure no longer suited their needs. When considering the size to which these organizations have grown or planned to grow in the near future, it became obvious that the continued use of the functional scheme of the organization would lead to serious problems. If a huge firm seeks to squeeze all its activities into three or four main departments, then in order to reduce the scope of control of each leader to an acceptable scale, each such department must be divided into hundreds of departments. In turn, this leads to the fact that the chain of commands becomes incredibly long and unmanageable. In addition, many of these large firms have spread their activities over wide geographical regions, so it is very difficult for one head of any functional area (eg, marketing) to control all this activity. The situation was complicated by the increased diversification of the activities of a number of firms. In previous centuries, even very large firms such as the Austinda Company did business in only one or two areas. Modern firms very often conduct operations in completely different areas of activity. This is especially true for conglomerates such as Gulf & Western, AiTi, Lytton Industries.
The scope of control and management of the departmental RMS R&D of the Ministry of Education of the Russian Federation should include the results obtained by subordinate universities and scientific organizations in the course of scientific, scientific-technical, scientific-methodological and innovative activities at all stages of the innovation cycle. The result of management at the level of the ministry is the optimization of the distribution of allocated resources, primarily budgetary funds allocated to support fundamental and exploratory R&D, applied and experimental R&D, development and technological works(OKTR) and innovative developments from all sciences existing in the Ministry of Education of Russia in the context of articles of the current budget classification. It is obvious that the task of optimizing the resource support of research and development activities should be solved for specific projects, taking into account additional extrabudgetary funds and resources attracted by universities or other project executors. Stages of the innovation cycle and possible sources of their financing in the university are summarized in fig. 1. Here are the main functions of the RMS R&D implemented for each project at the university level. At each stage, it is necessary to formulate and fix the received
Russian legislation, as well as the legislation of most states, there are special rules that regulate cash circulation. These rules are established in order to protect the rights of consumers of goods and services, the fiscal interests of the state, and ensure financial (including tax) discipline. So arbitrage practice rightly considers legal relations in the field of control over cash transactions of real capital, lies outside the control of the central or any other banks. Against this view, he gives the following argument (94) “By creating additional credit for entrepreneurs, bankers (as explained in Chapter 13, Part 1) carry out a forced collection of real values from the public, which increases the flow of real capital at the disposal of entrepreneurs and causes a fall in the real rate of interest on both long-term and short-term loans In a word, it is true that the bank price in the money market is mechanically related to the real rate of interest on long-term loans, but it is not true that this real rate is determined by conditions that lie entirely beyond the control of the bankers ".
If we get used to solving one problem and immediately challenging another, more difficult one, our sphere of control expands rapidly. I believe that this refers to the very nature of man and to his predestination. We feel at our best when we step on new ground, give our all to succeed, and achieve our goal. A boat is safer in the harbor than at sea, but that's not what it was built for. While we all have a need for security, the Need for adventure and variety is just as strong. We are growing at a time when we dare to explore the unknown and set new requirements for ourselves. The people who have the largest area of control are almost constantly outside their comfort zone. They GKyHHo, if one crisis is not replaced by another. Like an athlete
Imagine Willi Winzig1 and Richard Riesig2 work in a branch of a large concern. If Willie is only interested in his department, his area of control is apparently not very large. Meanwhile, Richard Risig is thinking about the direction of the concern, attracting new and strengthening old ties with existing customers, and marketing. In order for him to have more influence, he maintains contacts with other departments. He does not feel satisfied until he has visited the firm's headquarters. He knows what competition is. Thus, the sphere of influence of Mr. Risig gradually increases.
In order to expand the scope of control, there are four possibilities
It should be emphasized that these areas of control by hierarchy levels are conditional and are observed in a relatively calm environment. When a threatening situation is brewing or somewhere (for example, the absence of an export oil product at a particular marine transshipment tank farm), generalized consumers can be specified and attention of any level necessary in a given situation is drawn to them.
However, this direction activities of the FCSM does not fully correspond to the actual state of law in this area. The control is carried out weakly, the vast majority of issuers and professional participants are not checked at all. Inspections are carried out mainly on the basis of available signals of violations in the activities of issuers and self-regulatory organizations professional participants of the securities market. However, practice shows that it is not uncommon for violations of the norms of the current legislation to occur by agreement of the parties and, accordingly, no signal is received by the FCSM, as a result of which the violation remains without a response from the supervisory authority.
By controlling, managers in German-speaking countries understand the guiding concept of the effective management of an enterprise and ensuring its long-term existence. The Controlling Service focuses on the analytical functions of the area of control in the enterprise. She analyzes the reporting of the enterprise, determines the direction of its development, thus providing
See pages where the term is mentioned Sphere of Control
: Management in Organizations (1995) -- [Indeed, to some extent, the complexity of the manager's work (complexity) depends on the number of individuals reporting to him. Complexity increases as the number of interpersonal relationships increases. In fact, if the number of reports increases arithmetically, then the number of relationships grows exponentially.
For example, manager M has two subordinates A and B. The total number of connections between them will be six, Two direct single connections (M with A, M with B), two direct group connections. (M with A/B and M with B/A), as well as two cross-links (A with B and B with A). If manager M has one more subordinate, then potential connections will appear: 3 direct single, 9 direct group, 6 cross, i.e. the total number of connections will increase to 18.
V. Grakunais, a French consultant, brought out in the 30s. formulas of the "theory of connections", one of the variants of which looks like this:
K = n,
where K is the number of connections, n is the controllability norm.
Grakunais believed that the controllability norm n, i.e. scope of control should not exceed 8 units. In different sources, this number varies from 7 to 12.
Of course, such a quantitative approach is useful in some cases, however, its undoubted limitations are obvious. Such formulas are abstract and should not be confused with reality. “After all, many of the relationships at some given moment may not arise, and if they do, they do not always concern the relationship of leadership and subordination. All these relationships are possible, but they are usually not simultaneous and do not characterize the actual workload on the leader.
In general, the limit on the number of subordinates can vary over a wide range. Increasing the professionalism of the leader allows you to increase the number of subordinates. This process is also influenced by the type of technology, the degree of development information systems, socio-psychological parameters of the team, environmental factors.
The sphere of control is essential for creating a configuration, a form of organization. Let us assume that the firm has 48 employees, and the scope of control or the maximum norm of manageability is equal to 8. Then we need to introduce six managers into the firm per different levels hierarchy. On fig. 8-9. shows a similar structure with narrow sphere of control .
Rice. 8.9. Narrow scope of control
But the organization can be designed differently, by removing one level of hierarchy, then two managers will manage all 48 employees, or each of them will manage 24 employees. By increasing the span of control from 8 to 24, we cut six managerial positions and ended up with a structure with a broad scope of control (Figure 8.10).
Rice. 8.10. Wide scope of control
The choice of the sphere of control, as we noted above, depends on the circumstances, it can be different and at the same level of hierarchies.
Donelly, Gibson, and Ivantsevich make the following recommendations for expanding the scope of control:
1) the more educated and competent the superiors and subordinates, the wider the scope of control can be;
Internal environment of the organization is the set of its internal variables.
Internal variables - these are factors of the internal structure of the organization, the main part of which is the result of managerial decisions of management. The main variables of the internal environment of any organization include:
The goals of the organization
organizational structure of management (OSU);
Resources
staff.
What are the goals and resources of the organization you already know from the previous chapters and paragraphs. You will get acquainted with the principles and methods of motivating staff in the next topic. Here we will consider in more detail the concept of "organizational structure".
Organizational structure(organizational structure of management) is a set of all departments of the company and all the relationships between them in accordance with the hierarchy (Fig. 24).
Rice. 24. Illustrative example of a graphic image
(organigrams) OSU of the enterprise
The decision on the choice of the type and features of the organizational structure is made by the top management of the company, and its design is based on strategic plans. However, the structure of the organization can dynamically change depending on the requirements of the company's strategic goals, as well as the tactics chosen to achieve these goals.
The process of building an OSU is called organizational design, it consists of the following steps:
· departmentalization - division of the organization horizontally into blocks corresponding to the most important areas of activity (business functions);
Establishing the relationship between the powers of employees and managers;
further separation of smaller units;
· definition official duties every employee.
Sphere of control. One of the most important parameters of the OSU is sphere of control(otherwise - control coverage or control scale).
Sphere of Control is the number of people reporting to one leader at each level of management.
Hierarchy levels. Another important parameter is number of hierarchy levels(management levels) in the OSU of the enterprise. Different combinations of these two parameters give different types of OSU. On fig. 25 showing:
a) multi-level OSU with narrow areas of control at each level;
b) "flat" (having a small number of levels) OSU with wide areas of control at each level.
Rice. 25. OSU differences depending on the scale
manageability and the number of levels of hierarchy
What are the advantages and disadvantages of each of the two presented in Fig. 25. organizational structures?
Consider a multilevel OSU (see Fig. 25. "a"). The presence here of a narrow sphere of control (small scale of management) facilitates the work of the manager at each level of the hierarchy, however, at the same time, each manager must be a versatile trained specialist, because he has to be responsible for several areas of activity at once. Suppose that the organigram (Fig. 25. “a”) describes the structure of a manufacturing enterprise headed by CEO(upper level). Then two of his deputies - directors of activities - (the second level of the hierarchy) have to be responsible for such areas as marketing, research and development, procurement of raw materials, production and marketing of products.
In addition, a significant disadvantage of a multilevel OSU is the long time it takes for information to pass from a higher level to a lower one and vice versa. There is a possibility of distortion and loss information.
Every time information passes
next organizational level
only 60% of it remains.
And the losses are mounting fast, especially
in hierarchical companies with a large number of
organizational levels.
K. Nordström, J. Ridderstrale
Consider a "flat" OSU (see Fig. 25. "b"). Obviously, the problems and advantages of OSU in this case are reversed. A wide scope of control complicates the work of the manager, while a large number of specialists at each level allows you to make the work more specialized. A small number of levels reduces the passage time and the percentage of information loss. However, the management of such organizations requires the involvement of other principles that differ from the principles of management of multilevel structures.
On fig. 26 shows a diagram showing the distribution of organizational structures Russian companies by the number of levels in the hierarchy.
Rice. 26. Distribution of Russian companies
by the number of hierarchy levels
Study this diagram, answer the question, how many levels of hierarchy do most domestic companies have?
Authorization types. For a correct understanding of the principles of construction of the OSU and the functioning of the organization, it is important to know the types of authority (relations) in the organization.
Authority is the right officially granted to someone to do something.
In general, there are three types of authority in management: general, linear and functional.
General powers imply the right to make decisions related to setting the goals of the organization, developing a strategy, actions in a crisis situation, etc. Such authority belongs to the top management of the organization.
Line powers suggest a direct official communication between managers and performers, within which managers give orders to performers, i.e. indicate what, when, where(and sometimes as) they must do (or vice versa, not do) to ensure the achievement of the goal. At the same time, line managers are responsible for each contractor subordinate to them and for coordinating work.
In other words, linear authority provides the manager's managerial influence on the performers in the form of a set of specific functions, including the right to exercise on the subordinate administrative impact(announcement of penalties and rewards, dismissal, etc.).
Linear authority personalizes and simplifies the relationship between managers and subordinates. Thus, line authority creates a hierarchy of control in an organization called command chain(chain of authority).
As a rule, linear powers include the tasks of operational management of the activities of the main divisions of the organization (production, marketing, financial, etc.), organizing the work of personnel, creating the conditions necessary for people to fulfill their duties, maintaining a favorable moral and psychological climate in the team and etc.
Functional powers provide the managerial influence of the head on the performers in the form of a set of specific functions, without the right to exercise administrative influence. They are implemented through functional (indirect) links. Such powers consist in the fact that some managers have the right to make decisions that regulate the activities of employees directly subordinate to other (line) managers. Moreover, these decisions are binding on these employees.
Managers who have the right to use linear authority in relation to employees are called line managers(line managers), and those who have the right to use only functional powers - functional leaders(functional managers).
For example, the head of the personnel department of an enterprise has the right to demand from his subordinates, employees of the personnel department, the performance of duties within their functions, and also to encourage them for Good work or impose administrative penalties for bad, i.e. in relation to them, he is a line manager. At the same time, he also has the right to give instructions within the limits of his functions to employees of other departments, departments and services (for example, obliging them to submit relevant data on time). However, he does not have administrative rights in relation to them; is a functional manager.
To preserve the principle of unity of command (subordination of performers to only one line manager), the content and scope of functional powers in organizations are strictly regulated. Typically, such powers are held by the main specialists of the company ( Chief Accountant, chief economist, etc.) and heads of relevant departments and services (for example, the personnel department, planning department etc.).
General, line and functional powers refer to administrative powers. In addition to them, there are other types of powers.
Representative powers provide for the implementation by designated employees on behalf of management of such functions as coordination and control of activities.
Individual employees (as well as temporary or permanent commissions and committees) performing the coordination function are endowed with coordinating powers. Such powers are exercised in the process of developing joint solutions or projects by several departments. Persons or units that are vested with coordination powers have the right, on behalf of top management, to coordinate the activities of individual units and employees and direct it in a direction consistent with the goals of the organization.
Control and reporting powers employees who perform, within the established framework, the functions of checking the activities of departments (and individual employees) and receiving from them necessary information. Such powers can be assigned to special units (for example, the control and audit department, monitoring service), as well as to functional services (for example, accounting).
Conciliation powers consist in the fact that their holders are obliged to express their attitude to decisions made within the framework of administrative or coordinating powers. These include:
Mandatory approvals (extended advisory powers). Sometimes a special type of mandatory approvals is distinguished - cautionary powers. They are available, for example, to the legal service, whose employees check the compliance of management decisions with current legal norms. However, managers have the right to ignore the opinion of "cautionary" specialists, taking full responsibility for the possible consequences;
Parallel powers (such powers give the right to reject individual decisions of the line management, they are sometimes called blocking. For example, the chief accountant of the enterprise has blocking powers, because without his consent, a decision related to financial activities companies).
Often used in management is the term headquarters powers. They mean a set of various powers exercised by a special administrative apparatus of the company, called headquarters. Headquarters often include: functional, conciliatory and representative powers.
Thus, the structure of powers that arise in organizations can be illustrated by a diagram (Fig. 27).
Rice. 27. Types of authority in management
Centralization and decentralization of management. Another important parameter of the OSU of any company is the ratio of levels centralization and decentralization management.
In centralizedorganizational structures top management reserves b about most of the powers.
In decentralized organizational structures, powers are delegated (transferred) to lower levels of management.
Of great importance is the choice of the optimal ratio between the centralization and decentralization of power functions in the organization, because. the effectiveness of management depends on it. Excessive centralization of management leads to the fact that the activities of the organization are almost completely dependent on the highest level of management. At the same time, middle and lower managers play the role of only conductors and executors of top management decisions. In such companies, as a rule, creativity, innovation and independence of managers are not encouraged. On the other hand, this is fraught with serious negative consequences for top management, such as: large overloads (due to which there is a decrease in the efficiency of their work); the need to engage in operational management to the detriment of long-term plans and programs, etc.
To solve these and some other problems allows decentralization, which is based on the concept of "delegation of authority".
Delegation of authority- this is the transfer of part of the functions of the head to other managers or employees to achieve specific goals of the organization.
Delegation of authority is used to optimize the company's management system. Delegation of authority is based on the belief that employees working on a specific problem understand the situation better than the manager, and it is easier for them to find the right solution.
When delegating authority, it is very important to consider two circumstances:
Firstly, additional functions and responsibility for their implementation can be transferred only to those employees whose competencies, professional and personal qualities meet certain requirements (for example, such as responsibility, extensive work experience, independence, desire to engage in management activities, sociability, etc.);
Secondly, along with additional responsibility, these employees should be given appropriate rights that allow them to make management decisions.
Besides, top managers When delegating some of their powers to other employees, they should not forget about their material rewards (for example, wage increases, bonus payments, etc.). Insufficient attention to the rules of delegation of authority can nullify all efforts to improve the work of the organization or even completely paralyze its work.
Bureaucratic and adaptive organizations. With all the variety of types of OSU, they can be divided into two groups:
a) bureaucratic(mechanistic);
b) adaptive(organic) structures.
The term "mechanical" indicates that organizations built on this principle are very similar to the mechanism (sometimes they are said to "work like clockwork"). At first glance, this is good. However, do not rush to conclusions.
The term "organic" suggests that such organizations are similar in structure and development to a living organism, and their second name, "adaptive", recalls that these organizations, unlike bureaucratic ones, can quickly adapt (i.e. . adapt) to changes occurring in the external environment. So, for example, when the demand for any goods changes, the adaptive organization quickly switches to the production of another product, and so on.
What is the difference between bureaucratic and adaptive types of organizations? On fig. 28. characteristic features of these two structures are given. Study them and think about what type of organization is most effective in today's market, changing consumer demands and technologies, and so on. What prevents bureaucratic organizations from quickly adapting to changes in the market, fashion, technology, etc.? Give examples of companies you know and think about the type of organization they have.
We are abandoning hierarchical structures in favor of informal ones.
This is especially important for the business community. Rejection of bureaucracy
has become one of the main trends of the last decade.
J. Welch
Rice. 28. Signs of bureaucratic and adaptive organizations
There will always be Eskimos who will work out for the inhabitants
Congo instructions on how to behave in the most terrible heat.
Stanislav Jerzy Lec