Organizational Structure
The linear system is one of the earliest and simplest forms of organization. Its characteristic is that the administrative units at all levels of the enterprise carry out vertical leadership from top to bottom, the subordinate departments only accept the instructions of a superior, and the directors at all levels are responsible for all the problems of the subordinate units. The factory department does not set up another functional organization (functional personnel can be set to assist the supervisor), all the management functions are basically carried out by the administrative supervisor himself.
The advantages of a linear organizational structure are simple structure, clear responsibility and uniform command. The disadvantage is: it requires the chief executive to be familiar with a variety of knowledge and skills, personally deal with a variety of business. Under the circumstance of relatively complex business and relatively large enterprise scale, it is obviously difficult to concentrate all management functions on a single top executive. Therefore, the linear system is only applicable to small scale, the production technology is relatively simple enterprises, the production technology and management is more complex enterprises is not suitable.
Functional system Functional system organizational structure means that administrative units at all levels, in addition to the person in charge, also set up some functional organs accordingly. In the case of setting up functional organs and personnel under the factory director to assist the factory director in functional management. This structure requires the administrative director to hand over the corresponding management responsibilities and powers to the relevant functional organs, and each functional organ has the right to issue orders to the subordinate administrative units within its business scope. Therefore, in addition to receiving the command of the superior administrative director, the subordinate administrative responsible persons must also accept the leadership of the superior functional organs.

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