On the question of reducing the number of hierarchical levels in the organizational structure while preserving the overall capacity: methodology and mathematical model

Andrey O. Bondarenko (), Victor V. Makrusev () and Galiya S. Ukubassova ()
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Andrey O. Bondarenko: Russian Customs Academy
Victor V. Makrusev: Russian Customs Academy
Galiya S. Ukubassova: Esil University

Economic Consultant, 2023, vol. 2, issue 2, 4-15

Abstract: Introduction. Modern organizations face rapid changes in the market environment. Simplifying the hierarchy allows for faster response to changes, local decision-making, and adaptation to new conditions. Flat structures also promote better communication between levels, which makes employees feel more involved in decision-making. This can lead to increased motivation and productivity. The article aims to reflect the results of mathematical modeling of rational hierarchy in the organizational structure of public administration, using the example of the customs authority. Materials and methods. The research materials were articles from periodical scientific publications. When studying customs problems, queuing theory was used to analyze the functioning of customs posts and checkpoints when conducting customs control at the grassroots level over goods moving across the customs border. Results. The authors reflect the main results of mathematical modeling of the rational hierarchy in the organizational structure of state management through the example of the customs authority, making it possible to prove the implementation of a set of measures related to the transition from hierarchical structures to flat structures in the conditions of digitalization. The methodology and model developed based on mathematical tools of queuing theory are proposed to justify rational flat management structures. As a result of modeling, it is proved that the flat organizational structure is more logical than the hierarchical one because in such a structure, the speed of customer service requests increases due to the reduction of internal inter-level communication links. Conclusion. The transition to a flat structure is advisable based on the principle of integrity of the system potential formulated and justified in the study. The chosen transition strategy depends on the degree of digital and service transformation of state bodies.

Keywords: customs authority; flat structure; hierarchical structure; mathematical modeling; organizational structure; queuing theory; state management body (search for similar items in EconPapers)
JEL-codes: C02 O38 (search for similar items in EconPapers)
Date: 2023
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