Full Professor, Doctor of Economic Sciences Grynko T. V., Zlydnieva V. Yu.

OlesHonchar Dnipropetrovsk National University (Ukrainian)

USING THE CONTROL MODEL

 

While designing an organization the grouping of people and works is based on some criteria. During the grouping there is a stage when you need to decide on how many people work directly or can be effectively merged under a single management. Each of the managerial leaders is limited by time, knowledge and skills, as well as the maximum number of decisions he may take with reasonable efficiency.

The study of this issue is extremely important. After all, to improve management now need to determine the maximum number of employees, which can delegate powers to efficiently build enterprise structure.

Well known is the fact that there is a limit number of departments or employees, a management entity may be subject. Towards good governance  appears an information barrier   that defines the boundary difficulty of tasks that are available to address in this structure and with existing management tools. Based on examination of a number of enterprises and J. P. Lawrence. There is enough famous Fayol management organization. The "administrative" School of Management, offers a wide range of numbers, while some researchers thought the best rate is 7-10 subordinates [1, p. 42-68]. Thus, the French management consultant V. Hraychunas in 1933 developed and substantiated the theory of relations' supervisor-subordinate, which gives an idea of the degree of increase management complexity depending on the number of employees.

The research is based on  interactive center of  learning English. The company has seven departments, each of their is leaders  communicates directly with the head of company. Based on the theory by Hraychunas we distinguish three types of relationships between managers and subordinates.

 

Table 1. The relationship between the number of subordinates and the number of contacts with whom communicates the head of company

Types

Number of subordinates

contacts

1

2

3

4

5

6

7

8

9

10

First

1

2

3

4

5

6

7

8

9

10

Second

0

1

3

6

10

15

21

28

36

45

third

0

1

4

11

26

57

120

247

502

1013

 

It should be noted that in a small company is every form of communication, because in different situations leader forced to communicate both with each individual employee, and with the heads of departments.

The number of connections that have head of company is calculated with Hraychunas formula.

Calculate the example of our company, which employs 22 workers.

Number of connections equals 46,137,806.

Number of connections of head of a company and of each employee is very high. We can see that the manager must communicate extremely large number of times, as an option, we propose to reduce the number. You can do this by ceasing communication director for all members of management, and leave only the heads of departments and transfer a number of obligations on them, it will be more effective in managing the company.

The key factors affecting the decrease in the number of such contacts include:

– Professional preparedness subordinate, that the higher it is, the less time spent on head office contacts with subordinates;

–clear formulation challenges facing subordinates, so clearly the task or not met at all, or require large expenditures of time from the head;

–transferring of  authority – meaning that subordinate must have powers that are sufficient to make decisions in order to meet defined objectives;

time development organization – the faster development of the organization, the more the head rests load on contacts with subordinates;

–use objectivity in evaluating their subordinates. If the subordinate knows what the result of his work is recorded and when it uses objective assessment standards, then it is not necessary to report frequently to the head of the achieved results;

–use communications technology that allows the head to respond quickly interact with subordinates, without engaging them in direct contact [2, p. 62-87].

According to the theory it is impossible to exaggerate workers than 5, but in our opinion this is not entirely true, because there are examples of international practice when the leaders had a lot of employees, but at the same time managed successfully. In practice, theory by Hraychunas probably occurs in large corporations where the head has actually interact and communicate only with the leaders of the subsystems, but if we are talking about small and medium businesses, the manager is forced to manage on their own nearly all employees due to lack of resources. We offer the following classification for small businesses:

– Companies where the number of employees not exceeding 25 persons – aleader communicates with only 15 employees

– Companies where the number of employees 30-50 people – 10relationships with subordinates.

– Companies where the number of employees 50-65 people – 5relationships with subordinates.

Currently enterprises employing up to 50 people, including one with a leader who controls their work, it is extremely inefficient, because such a large number of links prevents the head to work without being distracted by side issues.

We believe the following classification is more adapted to local companies with few employees in the current economic conditions.

 

List of references:

1.       Gerald A. Cole. Management Theory and Practice / Gerald A. Cole. CengageLearningEMEA, 2004. 298 p.

2.       Гительман Л. Д. Амбициозные менеджеры: Дерзость и интеллект / Л. Д. Гительман, А. П. Исаев. М. : Дело, 2004. 360с.

3.       Муратов А. Конвергенция управленческих концепций: контроллинг и менеджмент качества / А. Муратов // Пробл. теории и практики управл. 2011. № 1. С.1319.