Structurization of mining companies

Abstract

Abstract A structure is defined as a combination of organizational units and business processes by technological, organizational, hierarchical and other bonds. It is one of the management tools. Mining companies are characterized by a dynamic and static structure. A dynamic structure includes technological processes, which are determined by mining technology, the organization of mining works and a work system. The static structure consists of technological processes infrastructure and includes a group of organizational units connected by the specific standards and processes of their operation. The type of the structure, particularly in its static part, is defined considering the hierarchy and organizational units classification. Taking the hierarchy into account, we distinguish: linear, functional, linear-staff and matrix structures. Considering organizational units classification, we distinguish: functional, divisional, processing and mixed structures. Each structure can be described by the following features: specialization, hierarchization, centralization and formalization. The features mentioned above have a significant impact on the mining company activity. The dynamic structure of a mining company, considering basic and support technological processes, is described in the paper. Concerning static structures, special attention was paid to functional structures in the one-unit mining company, as well as on divisional structures of the multi-unit mining enterprise. Analyses of organizational structures of selected mining companies indicate that functional structures are suitable for small or one-unit mines. In the case of large mining companies, which through the dynamic development become the global operators of several mines/projects localized in different geographical regions or countries, their organizational structure should change from functional toward divisional.