Mechanisms and Principles of Functioning of Management System of Timber Enterprise

Abstract

In order to increase the efficiency of the enterprise we should organize a management system, which depends on the precise structure of the enterprise and activities of all its elements towards the selected target. The management structure consists of all the goals distributed between different levels, between which relationships exist, ensuring coordination of individual actions for their implementation. The relationship of the structure and key concepts of management by goals, functions, process, functioning, and powers suggests that it has a huge impact on all aspects of the work of the organization. Organizations create structure in order to coordinate and control the activities of their departments and employees. The structure of organizations differ from each other by the degree of separation of activities into different functions - complexity, extent of use of pre-established rules and procedures, formalization, levels at which management decisions are taken – balance between centralization and decentralization. To improve the efficiency of the enterprise in an increasingly competitive environment, management must quickly react to constant changes in the external infrastructure. This is especially important for the forest industry, as their effectiveness depends on external conditions. Feature timber companies is that, in addition to changes in the external infrastructure, production activity is affected by changes of production conditions, which depend on space and run time of logging, from specific species and qualitative composition of old felling areas, climatic conditions, level of infrastructure development of the region as a whole.