During formation of optimal organizational structure, the company meets a number of problems caused by internal coordination, harmony, company´s size, age, and environment. Somehow or other, construction of organizational structure is reduced to consideration of several basic configurations. If we take industrial companies, for example, we can correlate their development stages with certain coordination mechanisms and forms of organizational structure.
Starting with simple structures under influence of an environment and technical systems they are in the line to mechanistic bureaucracy.
The majority of organizations at the initial stages of development have simple structure of management, generally with the undeveloped administrative structure, but allowing operatively react on changes in external environment. Simple organizational structure, based on the mutual coordination, is constructed on the basis of functional principle, where one official position can participate in different organizational units. For example, in the company with twenty employees engaged in release of certain cable production, general director participates in the process of personnel selection, and in designing of production and manufacture.
At some moments of development, the company has a requirement to increase the volume of production; therefore, the horizontal specialization of operational core occurs. Production divides into certain operations, and additional organizational units subsequently appear: shop №1 and shop №2 with their own definite tasks. (see fig. 1). Now we have mass production. It becomes rather difficult for the head of the company to carry out the direct control over structural units and the personnel as a whole; there is a necessity for occurrence and expansion of a median line of management structure - deputy directors on production, shift supervisors, and foremen appear. With the appearance of new posts and with the increase of the volume of production, the necessity for the industrial staff and also for support personnel reveals: educational center, dining room, security etc. Marketing department is formed. At the same time with changes in management structure, the need in production operative planning of customers´ needs, work and business process standardization appears. In that way, the technological structure appears in the company. Figure №1 shows us that production manager department, economic department, and standardization department appeared. Functions of standardization department are: standardization, optimization and creation of necessary processes, i.e. support of the management system integrity.
We can see that simple structure during its development and maturing stage inevitably turns to a bureaucratic mechanism. Figure №1 shows the diagram of transition of simple structure to mechanistic bureaucracy concerning two coordinates - time and volume of production. In the course of time, the production companies gain certain experience, turn to mass production, and expand their nomenclature that promotes transition to mechanistic bureaucracy, which basis is standardization. Ability to implement standards presumes that such organizations can exist for many long years. Rules and instructions run through the company´s structure, formal communications dominate on all levels, decisions are made in compliance with a chain of certain authorities. (see fig. 1). Reaction on environment changes forms needs in increasing the production volume, extending nomenclature, and entering new markets. Then follow need in personnel, new technologies, diversification, and infrastructure expansion. Information about requirements forms company´s strategy, which turns our simple structure to more controllable structure with advanced administrative part - mechanistic bureaucracy.
The given structure has some advantages - speed, unambiguity, accuracy, and minimum of disagreements. There is a centralized enough control structure. The operational core is divided into repeating tasks, which not demand high qualification. Effective regulation of work process. Formation of the general development strategy of the enterprise at a highest level of hierarchy. The mechanistic bureaucracy also has several disadvantages. Formation of strategy takes up much time and needs trustworthy information which is frequently deformed due to multilevel administrative hierarchy. Sometimes employees refuse to perceive themselves as one of factors of manufacture. Increase in number of employees of support personnel. Operational core is unable to settle conflicts, and they fall on an administrative part.
Библиографическая ссылкаWasjuta E.A.,. Pogrebniak D.A, Pogrebniak S.A., Markov A.V. FROM SIMPLE STRUCTURE OF MANAGEMENT TO MECHANISTIC BUREAUCRACY // Фундаментальные исследования. – 2005. – № 1. – С. 74-75;
URL: https://fundamental-research.ru/ru/article/view?id=5645 (дата обращения: 19.05.2022).