Decision Support System for Evaluation of Organizational Management Structures: Methods and Models

Abstract

The world practice of management shows that top managers daily face management decisions related to the improvement of business processes and, as a consequence, they see the necessity to reconsider the organizational structures. Existing Decision Support Systems (DSS) designed to develop and evaluate organizational structures distinguish such categories as business processes and organizational structure. This approach not only makes it difficult to understand the functions of the separate organizational unit and the organizational structure as a whole, but also can cause a number of systemic problems in the working process. The purpose of this article is to propose methods and models for decision support systems in the process of creating and evaluating organizational structures based on the new concept. The proposed concept and the developed notation of the organizational structure presentation allow to design organizational units with detailed description of the operations to be performed. The main difference between the proposed concept and notation of levels of the hierarchy and composition of the units of the organizational structure is the division of each level into two areas: the hierarchical structure and process structure (processes, functions, sub-functions, operations). For calculations the model of operations flow intensity and the model of operations performance intensity based on mathematical modeling of the annual operations flow, distributed on a working day and labor input into operations performance, united in sub-functions, functions and processes were developed. The developed methods and models are universal and can be used by the world community in the process of designing and evaluating organizational structures.