What is the organizational structure of the enterprise

All modern enterprises basically have a different organizational structure, which covers all areas of activity. It is the skeleton of any company, so you need to understand what the organizational structure of the enterprise is.

Definition

The organizational structure of the enterprise as such was discussed at the beginning of the 20th century, when there was a rapid qualitative leap in production, and therefore a revision of management approaches was required. The organizational structure of the enterprise in general terms is a set of rules, connections, attitudes and subordinates of all levels of enterprise management, from top managers to performers. The organizational structure of the enterprise existed even before the beginning of the 20th century, otherwise large enterprises and productions would not have arisen, however, from a theoretical point of view, they began to think about it in this era. At the moment, there are many types of organizational structures, but the most basic are hierarchical, divisional and organic.

Hierarchical organizational structure

This is the most classic and canonical type of organizational structure possible at the enterprise. As the name implies, the structure is based on a clear hierarchy between management levels, there is a clear distribution of duties and powers and, accordingly, a clear division of labor, regarding which the personnel policy of the enterprise is conducted. This organizational structure is characterized by such disadvantages as poor coordination of interaction between related departments, developed bureaucracy, and an impersonal attitude towards staff. This type of organizational structure is characteristic of large industrial corporations and enterprises of Russia and the CIS countries.

The largest theoretician and practitioner of creating organizational structures is Henry Ford, whose management style was adopted by many manufacturing firms of that era.

Division organizational structure

Due to the emergence of multidisciplinary enterprises and the expansion of the areas of activity of international corporations, by the end of the 20th century there was an urgent need to create new types of organizational structures. One of them was the divisional organizational structure, which is characterized by the division of the spheres of the enterprise into divisions / divisions, headed by responsible managers. The structure of the division may include several thousand employees operating in a single direction. Divisions can also be divided on a territorial basis, this is especially true for international transport companies. Similar organizational structure also has disadvantages, the largest of which are too branchy management systems, duplication of functional responsibilities between units, as well as the burden of divisions to form hierarchical organizational structures within themselves.

Existing organizational structures are most often mixed. Within the hierarchical structure, design units may exist, and vice versa - an organic structure may possess hierarchical elements.