With all the uniqueness of organizational forms of marketing, each of them must meet the following criteria, compliance with which indicates the high efficiency of the marketing structure Evans J.R., Berman B. Marketing. M. 1990. P. 199.:
- 1. Unity of goals of marketing departments. The basic goals of any organizational marketing structure are: increasing sales and profits and increasing the enterprise's market share. The goals of each of the marketing departments should correspond to the specified basic goals and should not be mutually exclusive.
- 2. Simplicity of the organizational structure of marketing is an indispensable condition for its effectiveness. The complexity of the structure always increases the cost of the management process, makes it more cumbersome, and, consequently, less susceptible to changes. Simplicity and the presence of a small number of links in the marketing structure are conditions for the effectiveness of communications between divisions of the marketing service.
- 3. An effective system of communications between departments ensures the clearest transfer of information. Feedback must be established in the communication system.
- 4. Unified subordination. Employees of each marketing department should receive orders from only one immediate supervisor. This principle serves to unify the functions performed by employees that have the same goal.
- 5. Flexibility, mobility, adaptability. These qualities are necessary not only for the marketing structure of the company, but also for its organizational and management mechanism as a whole. The marketing service is the “drive belt” that gives the rhythm of work required by the market to the entire company. It is designed to give the enterprise the features of flexibility and adaptability to changing market conditions. Flexibility is ensured by the ability of the marketing organizational structure to promptly change its forms when strategic objectives change. It is important to note that the possibility of changing forms must be inherent in the structure itself from the very beginning.
- 6. Correspondence of the scale of the organizational structure of marketing to the structural and spatial division of the organizational structure of the company, the characteristics of the profile of its activities, the nature of the strategic goals and the tasks corresponding to them.
- 7. Compliance of the organizational structure of marketing with the nature of the products produced, the breadth, completeness and depth of the product range. This means that any marketing structure must be based on the product principle to one degree or another.
- 8. Orientation of the organizational structure of marketing, with all its competitive differences, towards end consumers. Neglect of this principle dooms any marketing organizational structure to failure.
- 9. Empowering the marketing organizational structure with the rights necessary to successfully resolve its tasks and perform the functions assigned to it. The list of these rights must necessarily include coordination rights, that is, rights that allow the marketing structure to integrate all the business activities of the company in order to achieve its market goals.
Based on the provisions discussed in this chapter, the following conclusions can be drawn about the features of the existence and activities of organizational marketing structures:
Achieving the goals of an enterprise depends mainly on three factors: the chosen development strategy, the organizational marketing structure and how this structure functions.
The effectiveness of the marketing structure is critical to the successful implementation of the marketing concept. There is no universal scheme for organizing marketing activities. Marketing services can be created on different bases. Each enterprise creates a marketing service in such a way that it best contributes to the achievement of marketing goals (identifying unmet consumer demand for goods, geographical expansion of markets, finding new market segments, increasing profits, etc.).
At the same time, marketing structures largely depend on the size of the enterprise's resources; the specifics of the products produced and the markets in which these products are sold; from the existing enterprise management structure. Despite the large number of options for organizational marketing structures, today the unification of the marketing activities of an enterprise is most often carried out on the basis of functions and products.
The implementation of the marketing concept in an enterprise requires the creation of an organizational structure that would allow the implementation of this concept. Currently, without a system of marketing services that provide marketing research to study the prospects of demand, requirements for the properties and quality of goods, trends in these requirements under the influence of changing living conditions, it is difficult for manufacturers to survive in competition. The ultimate goal of the functioning of marketing services is to subordinate all economic and commercial activities of the enterprise to the laws of the existence and development of the market. Both manufacturers and consumers of E.P. Golubkov’s products are interested in this. Marketing research: theory, methodology and practice. - 2nd edition, revised and expanded. - M.: Publishing house "Finpress", 2000. - 464 s..
It is advisable to select the optimal structure of the marketing service, among other factors, depending on the size of the enterprise.
The marketing departments are closely related to each other. Each of them solves its own problems, ultimately aimed at determining demand, meeting customer requirements, ensuring sales, service and repair of manufactured products.
Marketing services represent two levels of management:
- · central marketing departments (or departments);
- · operational departments (or sectors).
In the general apparatus of enterprise management, central marketing services are not just divisions for servicing production and sales, but coordinating, planning and controlling bodies of strategic production and sales management. Most operational issues related to the implementation of the marketing mix; (comprehensive market policy of the company: product, price, sales, communication) is decided at the lower level of management - by the direct producers and marketers of a particular product. Marketing services not only regulate the sales of goods, but also directly manage the production programs of enterprises, depending on the specific requirements of end consumers for their products.
In the practice of enterprises, the structure of marketing services is varied, but the following main types of linear-functional structures can be distinguished:
- · on financial marketing activities;
- · by product;
- · by region;
- · by consumer groups.
Depending on the characteristics of the activities of enterprises, the types of products they produce or services provided, and the specifics of the market segment in which the companies operate, there is an interweaving and combination of various types of organizational structure of marketing services.
Marketing services by function
In the organization of functional marketing units, each department or sector develops and carries out one or a number of specific functions of marketing activities (Fig. 1).
Rice. 1 Linear-functional structure for managing the marketing activities of an enterprise by marketing functions
A similar structure is had by the marketing services of small enterprises working with a narrow product range in a small number of national markets and their segments, characterized by a certain homogeneity, stability and a relatively small amount of capacity.
These enterprises produce goods that do not require significant changes depending on the shades of demand placed on it by end consumers, and are also not subject to the active influence of scientific and technological progress Khrutsky V.E., Korneeva I.V. Modern marketing: a handbook on market research: Textbook. - 2nd ed., revised. and additional - M.: Finance and statistics.-528 pp..
However, this type of structure has disadvantages:
- · the lack of special product divisions and the difficulty of direct control over the processes of developing a new product, its creation and introduction to the market lead to a slowdown in updating the range of manufactured products that meet the needs of end consumers;
- · due to the lack of special divisions for specific regional market segments, the response to consumer requirements and changes in market conditions is slow;
- · it is difficult to resolve issues of financing marketing activities, etc.
Product Marketing Services
The organization of product marketing services has become widespread in the practice of foreign companies and is the basis for the formation of an organization on a product-industry basis - the types of goods produced and services provided (Fig. 2).
Rice. 2. Linear-functional structure for managing the marketing activities of an enterprise by product (product-industry)
This structure has the marketing services of companies that produce a wide range of products with different production technologies and specialize in a small number of sales markets of a relatively homogeneous nature. This allows firms to better adapt to market requirements for each individual product or homogeneous group of products.
The products of these companies are characterized by different production technologies, short life cycles, and a significant degree of innovative requirements. Markets are dynamic and determine the need for flexibility and speed of response of marketing services to changing consumer demands.
Disadvantages of the product-industry structure:
- · excessive emphasis on the technological orientation of marketing activities, the difficulty of finding new areas of application of the product and entering new markets;
- · insufficient market orientation, difficulty in implementing a comprehensive regional policy, especially with a significant share of export and foreign activities;
- · inefficiency of work due to the weighting of the management apparatus due to numerous product departments;
- · lack of high management effect in the supply of complex and knowledge-intensive products, as well as a package of goods for various purposes, targeted delivery, engineering, consulting, software and other services;
- · weakening of coordination ties for certain types of marketing functions, in some cases duplication and unjustified fragmentation of key functions for individual product marketing services;
- · increasing the complexity of strategic management and implementation of a unified marketing program.
Marketing services by region
The organization of marketing services in the region is typical for enterprises in small, heterogeneous markets with clearly defined boundaries (Fig. 3)
Rice. 3 Linear-functional structure for managing the marketing activities of an enterprise by region
This structure makes it possible to achieve success in implementing a comprehensive and differentiated market policy, to ensure the close dependence of the development processes of new products on the requirements of end consumers of specific markets, and to coordinate the entire market strategy of the enterprise. The regional structure gives advantages to enterprises that carry out extensive sales and production activities abroad.
However, it places special demands on the nature of the goods produced by the company. Products must be homogeneous and satisfy the homogeneous requirements of consumers of various segments in the region (watches, cars, agricultural machinery, universal machines, etc.) or be complementary or interchangeable. Products should not be subject to sudden changes in market conditions and seasonality or be significantly innovative Nozdreva R.B., Krylova G.D. Marketing: Textbook, workshop and educational-methodological complex on marketing - M.: Lawyer, 2000 - 568 pp..
Most often, these are goods that are in stable demand among large groups of the population and are sold through a wide network of intermediaries covering the entire region with their activities.
The regional structure of building marketing services also has disadvantages:
- · decentralization and duplication of a number of marketing management functions;
- · difficulty in coordinating products and functions, fragmentation of product policy by market regions;
- · insufficient efficiency for knowledge-intensive products that are largely subject to innovation, as well as for companies with a wide, multi-product range.
Marketing services by consumer group
In modern conditions of a differentiated market, the organizational structure by consumer groups, which represents a kind of marketing management departments for market segments, is of particular importance. It makes it possible to focus all the company’s activities on end consumers and, on this basis, implement for each group of them an individual, specialized comprehensive market policy throughout the entire reproduction process Belyaevsky I.K. Marketing research: information, analysis, forecast: Textbook. Benefit. - M.: Finance and Statistics, 2001. - 320 p.
This structure is most consistent with the requirements and principles of the marketing concept, since it is aimed at individual service and meeting the requirements for a product by a specific group of consumers. It allows you to implement a comprehensive marketing strategy in each market segment across the entire set of marketing functions, obtain reliable and complete information on the market niche, and provides the opportunity to select the most effective sales channels and methods of stimulating it for each segment. The organizational structure by consumer groups ensures long-term relationships with consumer partners in supply operations and ultimately stabilization of profits.
Matrix structure
In the practice of building marketing services, a matrix structure is encountered, although rarely. It is not very effective.
The matrix structure, presupposing a high degree of specialization of individual services, creates the preconditions for conflict situations in the management process at the points of intersection of their competence and requires a clear distribution of rights and responsibilities between individual links of the management system.
Such a structure can be had by enterprises operating in a diverse market profile, characterized by a high degree of centralization and control over operational activities in the overall management system. In practice, for such enterprises, it is more effective and expedient to split the management apparatus into autonomous divisions and build management services like holding companies, which makes it possible to avoid excessive complexity of the enterprise management system.
Fig.4 Linear-functional matrix structure for managing the marketing activities of an enterprise (for region A)
As a result of mastering this chapter, the student should:
know
- types of organizational structure of the marketing service;
- stages of creating a marketing service/department;
- functions and tasks of the marketing service/department;
be able to
Develop Regulations on the marketing service/department;
own
skills in creating a marketing budget.
Conditions for organizing marketing activities
Organization of marketing in a company involves:
- 1) awareness of the new function of interaction between the enterprise and the market;
- 2) development of a management system for marketing activities;
- 3) creation of a marketing structure (service or department) that ensures the implementation of marketing in the enterprise together with other departments.
The creation of a marketing division depends on the goals of the enterprise, its financial capabilities, the specifics of its products, the existing organizational structure and its size. Large enterprises create marketing services, and small and medium-sized enterprises create departments. In some companies there is no need at all to form their own department, so in the best case there is only one marketer, and in the worst case, his functions are performed by one of the employees.
Experts highlight the following options for creating a marketing service at an enterprise:
- initiative, when a group of specialists, full-time employees of an enterprise takes the initiative and approaches management with the idea of organizing a marketing service (department);
- compromise, when a marketing group is formed within a department, for example, a sales department;
- intermediate, when a marketing group is formed from among full-time and external employees to solve a problem;
- administrative, when a marketing service (department) is created by decision of the enterprise management;
- modern, when a marketing service (department) is created taking into account the selected justified organizational structure.
It is no secret that some managers of Russian companies still do not always understand the feasibility of creating a marketing division, therefore, when organizing it, you should:
- convince management of the need to create a marketing structure;
- have a clear idea of what place the marketing department will occupy in the structure of the enterprise;
- establish connections with other structural divisions of the enterprise;
- ensure organizational subordination to one of the top managers of the enterprise (for example, the commercial director in the absence of the position “marketing director”);
- choose the appropriate organizational marketing structure, taking into account the specifics of the products, the number of markets and the scale of the enterprise’s sales activities;
- develop regulations on the marketing service/department and determine the optimal number of employees - marketing specialists;
- resolve issues with material resources and the formation of a marketing budget.
In the future, in the process of work, it is necessary to build the authority of the marketing structure through deep knowledge of the company’s activities, conducting marketing analysis, planning marketing activities taking into account the enterprise development strategy, obtaining results from the implementation of specific marketing activities, etc.
Types of organizational structures of marketing services
The organizational structure of marketing plays a leading role in the successful implementation of the marketing concept of enterprise management.
The organizational structure of the marketing service is based on the use of one of the organizational structures: functional, product, market, regional, as well as divisional, matrix (Table 10.1).
Table 10.1
Types of organizational structures for marketing services
|
Type of organizational structures |
a brief description of |
|
Functional structure |
A traditional structure focused on the marketing department performing core functions and coordinating with other departments. Vertical management is used (manager - subordinate) |
|
Commodity structure |
It is used in large enterprises that produce a large number of different products that require specific production and sales conditions. For each product, a manager is appointed who coordinates the entire marketing complex |
|
Market structure |
It is used in enterprises that sell their products in different markets, where there are different product preferences, and the products require specific service. Work with markets is carried out by appropriate managers, and the market can be both an industry sector and a segment of buyers. Each market has its own marketing strategy |
|
Regional structure |
It is used in large enterprises that produce products that are sold in many regions. Managers work with regions |
|
Divisional structure |
Applicable when an enterprise is differentiated by product range or operates in several markets |
|
Matrix structure |
A temporary structure focused on creating working groups to solve a specific problem. Associated with a combination of vertical control of functional departments and direct horizontal coordinating control |
Functional structure involves organizing the activities of marketing service (department) specialists based on the functions they perform. It is used for enterprises with a small range of products that are sold in a limited number of markets (Fig. 10.1).
This is the simplest marketing organization, but its effectiveness decreases as the range of products and the number of markets served increases.
The advantages of this structure are:
- simplicity (clear to all employees);
- conciseness and convenience (easy enough to build);
- clear delineation of rights, duties and responsibilities.
The disadvantages include:
- focus on performing functions, and not on achieving results;
- high level of operating costs.
Rice. 10.1.
Commodity structure – typical for enterprises that produce a wide range of products, which require specific conditions of production and sales in a large number of homogeneous markets (Fig. 10.2).
Rice. 10.2.
The advantages of a commodity marketing organization are full marketing of each product and the ability to study the specific needs and main consumers for each product.
The disadvantages are the wide range of responsibilities of the product marketing manager, who coordinates the entire marketing complex, coordinates the activities of all departments of the enterprise that influence the marketing of the product he supervises, and studies the activities of competitors; predicts market dynamics, develops a marketing plan and budget, etc.
Market structure – used for businesses selling their products in multiple markets with different consumer preferences. As noted above, the market can be either an industry sector or a segment of buyers (Fig. 10.3).
Rice. 10.3.
The advantages of a market organizational structure include better coordination of services when entering the market; the ability to develop a comprehensive market entry program; a more reliable market forecast taking into account its specifics.
Disadvantages include a low degree of specialization of departments, duplication of functions, poor knowledge of the product range, and lack of flexibility.
Regional structure – typical for enterprises that produce products that are sold in several regions that differ from each other in natural and climatic conditions, people’s lifestyles, etc. This will allow marketing strategies to take into account the specifics of consumption of the same product in different territories and reflect it in the consumer properties of the product (Fig. 10.4).
The main advantage of this structure is the ability to specialize in certain regions (territorial zones), knowing their consumers well.
The main disadvantages of a regional marketing structure are duplication of work and problems of coordination of activities.
The product, market and regional structures of the marketing organization are very similar in form. Their difference is that at the second level of the hierarchy, managers can be focused on working with the product, or working with the market, or working with the region.
Rice. 10.4.
The above organizational marketing structures are general in nature and can only be the basis for creating the most appropriate marketing service for a particular enterprise. In practice, based on the conditions in which the enterprise operates, the structure of its marketing service can combine the features of product and functional, or market and functional, or regional and functional structures, i.e. represent more complex from an organizational point of view, mixed organizational structures (Table 10.2).
Table 10.2
Mixed organizational structures of the marketing service
|
Type of organizational structures |
characteristic |
Advantages |
Flaws |
|
Product-functional structure of the marketing service |
Used in enterprises that produce a wide range of products, where the product manager is responsible for developing strategy and marketing plans for a specific product (or group of products) |
Support for each product; the ability to study the specific needs and main consumers for each product; quick response to market demands |
Increased management costs; Possibly low quality of management decisions; lack of coordination within the product/brand portfolio |
|
Market functional structure of the marketing service |
It is used when an enterprise operates in several markets. For each market, an appropriate strategy is developed, focused on the needs of the consumer of this market, the responsibility for which lies with the managers of individual product markets |
Manageability and adaptation to the characteristics of each market; concentration of marketing activities around the needs of specific market segments |
|
|
Regional functional structure of the marketing service |
It is used when an enterprise produces homogeneous products intended for sale in several regions with distinctive features. Regional sales managers are responsible for the development of strategy and implementation of marketing plans. |
This organization allows marketers to live within the service territory, know their consumers well and work effectively with minimal time and money spent on travel. |
Increased management costs; duplication of work and problems with coordination of activities |
Divisional structure Usually used by large enterprises, since it allows for the independence of divisions, which is the logical conclusion of universalization and at the same time the development of the principle of specialization at a new qualitative level.
A divisional organizational structure is a set of independent divisions that are part of an organization, spatially separated from each other, having their own sphere of activity, independently solving current production and economic issues. At the same time, the company's management provides the strategy for its development as a whole, controlling the profitability of subordinate divisions (Fig. 10.5).
Foreign experience
American corporation General Motors was one of the first organizations that managed to overcome the limitations of the linear-functional structure. In conditions of diversified production, it was decided to significantly expand the independence of large divisions and, by giving them the right to react to market conditions, turn them into “profit centers.” This bold management decision was proposed and implemented by the president of the company
L. Sloan, who called the new structure “coordinated decentralization.” Subsequently, this organizational structure was called divisional.
Rice. 10.5.
The main advantage of a divisional organization is a closer relationship than other organizational structures between the material incentives of divisions and the results of their activities, which enhances the motivation of employees.
The main disadvantages of the structure are duplication of management functions at different levels, which leads to increased costs for maintaining the management apparatus, and duplication of work for different departments.
Matrix organization is a two-level organizational structure, in which the vertical level is created by a hierarchical structure, and the horizontal level is created by marketing programs. In other words, the matrix structure is based on the principle of double subordination of performers: on the one hand, to the immediate head of the functional service, and on the other, to the head of the marketing program (Fig. 10.6). This structure is suitable for large marketing-oriented companies.
The matrix structure is effective when solving any project problems, for example, the need to develop a new marketing program, advertising campaign, etc. in a short time.
To solve problems, temporary groups of specialists from different functional departments of the enterprise are created. Employees included in the program are not released from their current work and for this period they fall under double subordination: the program manager and the heads of the relevant structural divisions.
The advantages of the matrix structure are the involvement of managers at all levels and specialists in the field of active creative activity, the possibility of using effective management methods, the personal responsibility of the manager for the implementation of the program as a whole, a large scope of work and management objects, etc.
Disadvantages include the problem of double financing, the emergence of conflicts between heads of functional departments and program managers, problems of distribution of rights, duties and responsibilities, etc.
- URL: good-reklama.ru/osnovymarketinga/133.html
- URL: aup.ru/books/ml50/18.htm
- Gaidaenko T. A. Marketing management. Full MBA course. Principles of management decisions and Russian practice.
Designing organizational structures for marketing (marketing services) is the activity of developing and implementing such structures into the company’s activity management system. When forming marketing services, you need to adhere to the following basic principles:
- · small number of links;
- · simplicity of the marketing structure;
- · unity of goals;
- · the principle of unified subordination;
- · creating conditions for the development of integrated marketing;
- · assisting the company in constantly meeting the needs of existing and potential customers;
- · ensuring the development of creativity and innovative activities of employees;
- · guarantee of rapid adaptation of manufactured products to market requirements;
- · promoting sales growth and cost reduction.
Marketing services include two levels of management:
- · central marketing departments (departments);
- · operational departments (sectors).
In the general apparatus of enterprise management, central marketing services are not just divisions for servicing production and sales, but coordinating, planning and controlling bodies of strategic production and sales management. Marketing services not only regulate the sales of goods, but are also directly involved in managing the production programs of enterprises, depending on the specific requirements of consumers for their products.
In practice, the structure of marketing services of companies is varied, but the following main types of linear-functional structures can be distinguished:
- · on financial marketing activities;
- · by product;
- · by region;
- · by consumer groups.
Depending on the characteristics of the companies’ activities, the types of products they produce or services they provide, and the specifics of the market segment in which the companies operate, there is an interweaving and combination of different types of organizational structure of marketing services.
Marketing services by function
In the organization of functional marketing divisions, each department develops and implements one or a number of specific functions of marketing activities (Fig. 3).
Fig.3
This structure has the marketing services of small enterprises that operate with a narrow product range in a small number of national markets and their segments, characterized by a certain homogeneity, stability and a relatively small amount of capacity.
These companies produce a product that does not require significant changes depending on the shades of demand placed on it by end consumers, and is also not subject to the active influence of scientific and technological progress. But this type of structure has disadvantages:
- · updating of the range of manufactured products that meet consumer demands is slow due to the lack of special product divisions and direct control of the processes of developing a new product, its creation and implementation is difficult;
- · the lack of special divisions for specific regional market segments leads to a slower response to consumer requirements and changes in market conditions;
- · it is difficult to resolve issues of financing marketing activities, etc.
Product Marketing Services
The organization of marketing services for a product has become widespread in the practice of foreign companies and is considered the basis for the formation of an organization on a product-industry basis - the types of goods produced and services provided (Fig. 4).
Rice. 4
A similar structure is had by the marketing services of companies that produce a wide range of products with different production technologies and specialize in a small number of sales markets of a relatively homogeneous nature. This allows firms to better adapt to market requirements for each individual product or a homogeneous group of products.
The products of such companies are characterized by different production technologies, short life cycles, and a significant degree of innovative requirements. Markets are dynamic, so marketing services need to be flexible and responsive to changing consumer needs.
Disadvantages of the product-industry structure:
- · insufficient market orientation, difficulty in implementing a comprehensive regional policy, especially with a significant share of export and foreign activity;
- · inefficiency of work due to the overburdening of the management apparatus due to numerous product departments;
- · excessive emphasis on the technological orientation of marketing activities, the difficulty of finding new areas of product introduction and entering new markets;
- · lack of a high management effect when delivering complex and knowledge-intensive products, as well as a package of goods for various purposes for targeted delivery;
- · weakening of coordination ties for certain types of marketing functions, and even duplication and unnecessary fragmentation of key functions for individual product marketing services;
- · complication of strategic management and implementation of a unified marketing program.
Marketing services by region
The organization of marketing services in the region is typical for enterprises in small, heterogeneous markets with clearly defined boundaries.
Rice. 5
This structure makes it possible to achieve success in implementing a comprehensive and differentiated market policy, to ensure a close connection between the processes of developing new products and the requirements of end consumers in certain markets, and to coordinate the entire market strategy of the enterprise. formation service marketing enterprise
The regional structure, which provides advantages for enterprises carrying out extensive production and marketing activities abroad, implies special requirements for the nature of the goods produced:
- · products must be homogeneous and meet the homogeneous requirements of consumers of various segments in the region or be complementary or interchangeable;
- · products should not be subject to sudden changes in market conditions and seasonality or be significantly innovative.
We are talking about goods that are in stable demand among a large group of the population and are sold through a wide network of intermediaries whose activities are spread throughout the region.
The regional structure of building marketing services also has its disadvantages:
- · decentralization and duplication of marketing management functions;
- · difficulty in coordinating products and functions, fragmentation of product policy by market region;
- · insufficient efficiency for knowledge-intensive products that are largely subject to innovation, as well as for companies with a wide, multi-product range.
Marketing services by consumer group
In modern conditions of a differentiated market, the organizational structure by consumer groups, which is a kind of marketing management departments for market segments, is of particular importance. It makes it possible to direct all the company’s activities to end consumers and, on this basis, implement for each group of them an individual, specialized, comprehensive market policy throughout the entire reproduction process.
This structure is aimed at individual service and meeting the requirements of each specific group of consumers, therefore it is most consistent with the principles of the marketing concept. The structure by consumer groups allows you to implement a comprehensive marketing strategy in each market segment across the entire list of marketing functions, obtain reliable and complete information on the market niche, and provides the opportunity to select the most effective sales channels and methods of stimulating it for each segment. This organizational structure ensures long-term relationships with consumer partners in supply operations and, as a result, stabilization of profits.
Matrix structure
In practice, a matrix structure is found among marketing services, although quite rarely. The matrix structure is characterized by a high degree of specialization of individual services, which creates the preconditions for conflict situations at the points of intersection of their competence in the management process; therefore, a clear distribution of rights and responsibilities between individual parts of the management system is required. The matrix structure is not highly efficient.
This structure is suitable for enterprises operating in a diverse market profile, characterized by a high degree of centralization and control of operational activities in a general management system. In practice, for such enterprises it is more effective and expedient to split the management apparatus into autonomous divisions and build management services like holding companies, which makes it possible to avoid excessive complexity of the management system.
Fig.6 Linear functional matrix structure
