The System for Support of Organization and Economic Mechanism for Adaptation of Extracting Enterprises to External Environment Conditions

Abstract

Current economic conditions require from the enterprise management flexibility, efficiency, strategic thinking and capacities for using contingency approaches to management. Adaptation is a practical means for problem solution by management of enterprises. Implementation of adaptation processes requires building up an appropriate organization and economic mechanism, which important component is the support system. Although an important part of the economy, extracting industry is in the unstable condition because of the negative impact of external factors. The above mentioned emphasizes the importance of the topic under the study

It is shown that adaptation means the process of enterprise’s adjustment to the conditions of unstable external environment, which involves structural, functional and managerial change aiming at stable operation and development of enterprise in the long-term future. A significant number of adaptation patterns can be found in business practices.

The system for support of organization and economic mechanism for adaptation is defined as a set of labor, financial, information, intellectual resources, methods, tools and management models aimed at the enterprise’s adaptation to the external environment conditions. The essential components of this system pertain to regulation, carders, finances, information and analysis, organization and methods.

The regulatory component is the system of regulatory acts at all the management levels, from national level to enterprise. Information and analysis component needs to be formed by phase of adaptation. The component pertaining to carders includes all the entities managing the adaptation process and their qualification characteristics. The financial component includes the financial resources required for implementation of the mechanism. The organization component is a system of communications and links between managing entities and managed units in the adaptation process, and the methodical component includes a set procedures and methods used in the adaptation process.

Structuring of the support system is an important component of the organization and economic mechanism for adaptation. The capabilities of a business entity to undertake adaption measures and the latter’s effectiveness are conditional on the adequacy and rationality of the support system.