Production structure of the enterprise

The production structure of the enterprise continues the management structure introduced at the enterprise . On management, experts are increasingly talking about philosophy.

It is no longer enough to have one or several managers in the company’s staff who could ensure its stability and development at the forefront. Consumer requirements for the quality and variety of goods dictate their conditions to manufacturers and sellers.

Today in management theory, you can find many models of organization of the enterprise structure . Among many, one can single out functional and linear structures.

Each production structure of the enterprise has its advantages and disadvantages. The specific conditions of the enterprise determine the feasibility of choosing the optimal structure. The structure of the enterprise undergoes changes along with changes in the external and internal conditions that determined their structure in the past.
Underestimation of the importance of the current structure of the enterprise leads to the loss of market positions.

Many begin with a linear structure. It is very easy to understand, organize and administer.
The linear structure of the enterprise clearly defines the areas of responsibility of managers, allows you to clearly organize monitoring of changes and control of results. The head of the linear vertical is responsible for the entire vertical and is accountable only to the director.

The production structure of the enterprise with a linear structure is effective in crisis situations or, if necessary, a qualitative breakthrough in the market.
All the positive aspects of the linear structure of production can be disclosed only if the management of the organization consists of specialists of the highest class.

If personnel management has problems, they will immediately affect the failure of the enterprise in the problem area.
In other words, if the enterprise has a linear structure, then the share of internal risks increases its weight. One major mistake of one line manager is enough for the complete bankruptcy of the entire enterprise.

At the same time, the linear structure provides maximum efficiency in management due to the unity of command of the head and the clear interaction of all structures in each vertical.
These qualities of the linear structure cease to work as soon as the enterprise has several types of industries that require interaction with each other.
The linear structure is effective at the start, but not effective at the development of the enterprise.
The functional structure of the enterprise is common in organizations operating in relatively stable environmental conditions and having a limited number of areas of activity.

Such conditions allow full-scale standardization and unification of production, constantly maintaining up to date. There are few enterprises operating in such market conditions. For example, we can include those who work in the markets of raw materials, metallurgy and the chemical industry.

The functional structure allows you to create and maintain high standards of the enterprise standards for all services. Qualified managers of functional structures can provide everything necessary for a stable position of the company in the market. At the same time, the structure erodes the responsibility of managers and creates difficulties in coordinating management decisions.
The structure allows you to remove part of the managerial load from line managers, allowing them to increase their competence in production issues.

If the environmental conditions, which are ideal for the existence of a functional structure, change - the production structure of the enterprise should change as well. Otherwise, the existing structure will be incapacitated in the new conditions and the company will face bankruptcy.


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