Production structure of the enterprise

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

It is not enough to have one or several managers in the company that could ensure its stability and development at the advanced level. The requirements of consumers to the quality and variety of goods dictate to producers and sellers their conditions.

Today in management theory, you can find many models of organization of the structure of the enterprise. Among many, it is possible to distinguish functional and linear structures.

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

With the linear structure, many begin. It is very simple in understanding, organization and administration.
The linear structure of the enterprise clearly defines the areas of responsibility of managers, allows for the precise organization of monitoring of changes and monitoring of results. The head of the linear vertical is responsible for the whole vertical and is accountable only to the director.

The production structure of an enterprise with a linear structure is effective in crisis situations or if there is a need for a qualitative breakthrough in the market.
All the positive aspects of the linear structure of production can be disclosed only in the case when the management of the organization consists of experts of the highest class.

If the personnel management has problems, they will immediately affect the failure of the enterprise in the problem area.
In other words, if an enterprise has a linear structure, the share of internal risks increases its weight. One large error of one line manager is sufficient for the complete bankruptcy of the whole enterprise.

At the same time, the linear structure ensures maximum operational efficiency in management due to the manager's unanimity and 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 in 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 activities.

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

The functional structure allows to create and maintain a high level of enterprise standards for all services. Qualified heads of functional structures can provide all necessary for a stable position of the company in the market. At the same time, the structure dilutes the responsibility of managers and creates difficulties in coordinating management decisions.
The structure allows to remove some of the administrative burden from line managers, allowing them to improve their competence in production matters.

If the environmental conditions that 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 new conditions and the enterprise expects bankruptcy.