Linear and functional organizational structure: advantages and disadvantages

Functional organizational structure of management is a scheme of the work of the management bodies, in which each of them is required to perform a certain range of technological, production, design, financial or information functions. Production units subordinate to the functional body are required to comply with all of its instructions.

The most common type of governance structure is a linearly functional organizational structure. This management scheme includes line departments that perform the basic work in the organization, as well as the functional servicing units. Linear links are engaged in making decisions at their level, while units help the leader to make and develop decisions, and also inform him.

Linear and functional organizational structure: description

At the heart of this management scheme is the mine method of construction, in which specialization of the management process is carried out in functional subsystems (production, marketing, finance, development and research, personnel, etc.). Each subsystem forms its own hierarchy, which permeates the entire organization from top to bottom. The evaluation of the activities of each service is performed through indicators that characterize the fulfillment of its tasks. The whole system of incentives and motivation of employees is appropriately constructed. The final result (the quality and efficiency of the enterprise as a whole) goes to a secondary plan, since it is believed that all units are working to achieve it.

Linear-functional organizational structure: disadvantages and advantages

Positive aspects are the clarity of the system of units' interaction, one-man management (the manager takes over management), delineation of responsibility (everyone knows what is responsible for), the possibility of quick reaction of executive divisions to instructions received from above.

The lack of structure lies in the absence of links that develop a common strategy of work. Leaders of almost all levels primarily solve operational problems, rather than strategic issues. There are prerequisites for shifting responsibility and dragging out when solving problems that require the interaction of several units. The management of the enterprise has weak flexibility and poorly adapts to changes. The organization and units have different criteria for assessing the effectiveness and quality of work. The current trend towards a formal evaluation of these indicators usually leads to the emergence of an atmosphere of disunity and fear.

Disadvantages of management in this structure are the large number of intermediate links that exist between employees and the manager making decisions. Top-level managers are subject to overload. The relationship between performance and qualifications, business and personal qualities of the top management team is increasing.

Thus, it can be concluded that in modern conditions a linearly functional organizational structure has more shortcomings than merits. With this system of organization it is difficult to achieve high-quality work of the enterprise.

Disadvantages of the linear scheme is designed to eliminate the linear-staff organizational structure. It helps to eliminate the main shortcoming, which is connected with the lack of links meant for strategic planning. This structure provides for a reduction in the workload of senior managers, it is possible to involve external experts and consultants. However, the distribution of responsibility remains unclear.