Organization is consciously joining people who accomplish certain business goals and tasks, that structure of people with certain resources makes the organizational structure. Organizational structure is a guiding principle in business operations, a set of elements that determinds and forms business flow. The business goal is to achieve the planned business tasks, the easiest way is to divide the job into several smaller tasks that manage specific entities, functions. Production function is an important part of the production process and has a task to produce a certain amount of products with defined quality and in limited deadline with the lowest possible cost. Production function is organized through certain tasks that prepare the production process and the finished product on the business operations affects the environment and causes changes in the organization. Changes need to be adapted and successfully implement them into business. Management decides on all business related decision and implements changes, establishes organizational culture and solves conflicts if there is one. Production is part of our everyday life, without which it is not possible to function in the world.