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

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

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

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

Business Purpose: Maximise: productivity creativity innovation wealth Danger: competition

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 People report to somebody

Common Organization Structures Hierarchy Functional Matrix Team

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

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

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

Matrix management People from different departments work together People report to both their project and line managers

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

Match the following sentences: 1.I work in thea) working in teams. 2.I’m responsible forb) Finance Department. 3.My job involvesc) financial statements. 4.I report tod) raising money. 5.I spend some timee) to the CFO.

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

1. MK: pp: 22 and 23 – Vocabulary 2. p: 25 – Write a short summary on working for either a big or a small company Which groups govern corporations? _______________________ What are their responsibilities? __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ Write down the explanation of the following words: empowerment _____________________________________ hierarchy ________________________________________ downsizing _______________________________________ What is a flat hierarchy? ____________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________