As purely functional structures were not too effective, the large organizations passed to use of divisional structures. The main types of such structure are the divisional structures focused or on different types of production, or on various groups of consumers, or on various regions. The choice for this or that structure is defined by importance of this element in strategic plans of the organization.
The purposes will be significant part of process of strategic management only if the top management correctly formulates them, informs on them and stimulates their implementation in all organization. Process of strategic management will be successful in that degree in what the top management participates in a formulation of the purposes and in what measure these purposes reflect values of the management and reality of firm.
The strategic plan has to locate extensive researches and actual data. Effectively to compete in today's world of business, the firm has to be engaged constantly in collecting and the analysis of a huge number of information on branch, the market, the competition and other factors.
The strategic plan has to be developed rather from the point of view of prospect of all corporation, but not the specific individual. Though, at the personal enterprises the founder of the enterprise is able to afford relative luxury to combine personal plans with strategy of the organization.
Mission details the status of firm and provides the direction and reference points for definition of the purposes and strategy at various organizational levels. The formulation of mission of the organization has to contain the following:
Some problems of bureaucratic structures can be solved at introduction of organic or adaptive structures. The main types of adaptive structures is a design organization, the matrix organization and conglomerates.
The majority of the organizations use bureaucratic structures of management today. Traditional structure of bureaucracy is the functional organization at which the last breaks into the divisions which are carrying out specialized functions.
Tactics represents concrete short-term strategy. The policy represents the general reference points for actions and decision-making. Procedures order actions which have to be undertaken in a concrete situation. Rules precisely specify that it is necessary to do in a concrete situation.
Advantages of bureaucratic structures of management consist in clear split of work, hierarchical hierarchy of employees and governing bodies, the professional growth which is based on competence and in the ordered system of the rules and standards defining functioning of the organization. The potential and negative impacts made by bureaucratic structures on functioning of the organization consist in a rigid zadannost of behavior, difficulties of communication in the organization and inability to fast innovations. Scales of these problems quickly increase if the organization faces fast changes of environment or hi-tech production.
Planning and success of the organization. Some organizations, as well as individuals, can reach a certain level of success, without spending big work for formal planning. Moreover, strategic planning in itself does not guarantee success. The organization creating strategic plans can fail because of mistakes in the organization, motivation and control.
It is important to realize that delegation is realized only in case of acceptance of powers, and actually responsibility cannot be delegated. The head cannot wash away responsibility, giving her to the subordinate. Though the person on whom responsibility for the solution of any task is conferred, is not obligatory to carry out it personally, it remains responsible for satisfactory completion of work.
we can satisfy our clients?". Any who uses results of activity of the organization will be the client in this context. Those who uses its services will be clients of non-profit organization and provides it with resources.
Delegation of linear powers creates hierarchy of levels of management of the organization. Process of creation of hierarchy is called as scalar process. As powers dispose of people usually are transferred by means of scalar process, the resulting hierarchy is called as a scalar chain or a chain of teams. So, the chain of teams is result of delegation of linear powers.