Optimization of Organizational Structure as Tool to Raise Labour Productivity

Abstract

The topic of labour productivity is becoming more and more acute in conditions of mobilization economy. One of the most ordinary tools to raise it is optimization of organizational structure, cutting the number of management levels and revision of quantity norms in divisions. The goal of the research is to put forward methodological recommendations on the basis of summarized experience in optimization of company organizational structure, which aim at its upgrading, proceeding from the necessity to raise labour productivity, controllability and decrease in the number of non-target positions. The principle methods of the research were analysis of commercial organizations’ experience in the field of organizational structure optimization, summing up applied developments, interviews with experts in organizational efficiency. In the majority of organizations structure is not optimum, it was shaped historically and thus it does not comply with current managerial standards and approaches. The elaborated methodological recommendations show opportunities to use one of the most ordinary tools of optimization that does not require investment and serious labour costs and as a rule is linked with elimination of extra levels of management and managerial positions and covers a small number of employees.