COMPANY STRUCTURE Internal organisation of business, different ways of organizing work.

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Presentation transcript:

COMPANY STRUCTURE Internal organisation of business, different ways of organizing work

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Internal organization depends on: type of business activity (insurance, factory, hospital, college, supermarket….) size of business (small/medium sized/large) number of employees

Changes a) past: pensionable jobs inefficient bureaucracy economic security b) present: flexible labour markets (deregulated markets) advances in computer technology greater efficiency economic dynamism (insecurity) global competition

Business purpose: Maximise: productivity creativity innovation wealth Danger: competition > lay offs

SMS enterprises (small/medium-sized) 1. small firms - no departments - no specialisation - a wider range of skills - work more interesting and satisfying 2. medium-sized enterprises - company with less than 250 employees - annual turnover less than €50 million - 2/3 of all private sector jobs

Europe’s private- sector jobs:

COMPANY STRUCTURE A company: consists of departments contains departments includes departments is made up of departments is composed of departments is divided into departments

People are: in charge of something accountable to somebody responsible to somebody responsible for something supported by somebody report to somebody

Common Organization Structures Hierarchy Functional Matrix Team

1. Hierarchy Clear chain of command Superiors/subordinates Immediate superior/subordinate Responsibility passed on bosses People at lower levels / subordinates can’t take important decisions Trend: reducing the chain of command – flattening

President of the Board of Directors Senior Managers Middle Managers Junior Managers Staff/Employees Shop Floor

Board of Directors President + Chief Executive Officer Senior Managers Middle Managers Junior Managers Staff (Employees)

Board of Directors elected by the shareholders look after shareholders’ interests at the top President/Chairperson Chief Executive Officer (CEO) / Managing Director (MD) Chief Operating Officer (COO) Chief Financial Officer (CFO)

a) - Representatives from within the company - Chairperson - inside directors – executive directors - Managing Director (Chief Executive Officer) b - Representatives independent from the company - outside directors – non-executive directors

2. Functional structure (large manufacturing companies) Production Finance Marketing Sales Human resources (operating divisions)

3. Matrix management People from different departments work together People report to more than one superior

4. Team Wholly autonomous Temporary groups Responsible for the entire project Split up after successful completion

Wikinomics – the internet wiki = quick (Hawaiian) wiki + economics outsourcing – operations outside the company

1. MK: p: 22,23 2. MK: p.25: Write a short summary on working for either a big or a small company 3. RB: p: 36, 37,38

4. Match the following sentences: 1. I work in the a) working in teams. 2. I’m responsible for b) Finance Department. 3. My job involves c) financial statements. 4. I report to d) raising money. 5. I spend some time e) the CFO.

5. Make partnerships: Board __________________ labour __________________ global __________________ annual __________________ executive _______________ chain __________________ immediate ______________ pass on _________________ line ___________________ chief __________________

What groups govern corporations? _______________________ What are their responsibilities? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________ Write down the explanation of the following words: empowerment _____________________________________ hierarchy ________________________________________ downsizing _______________________________________ What is a flat hierarchy? ___________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _______