Abstract:
The problem of rational organization structure formation is considered as a discrete optimization problem of searching the management hierarchy to minimize the given criterion (hierarchy's cost). The class of cost functions that reduce to the sum of uniform functions is studied. The conditions are derived when
constant-span-of-control hierarchy is optimal. The formula is suggested for the lower bound of the
optimal hierarchy's cost. An example of finding out the optimal hierarchy is given. The plan of prospective studies is drawn.
Keywords:organization structure, optimal hierarchy, non-uniform cost function, span of control.