1. COMPANY STRUCTURE

2. 1.A disadvantage of … is that …

3. People involved in corporate structure
shareholders
management
workforce

4. WORKFORCE senior staff ≠ junior staff
employees /staff/personnel
senior staff ≠ junior staff
higher-positioned ≠ lower-positioned
superiors ≠ subordinates
Mary is Kate’s superior. Kate is Mary’s subordinate.

5. MANAGEMENT Top management Senior management Middle management
Lower management

6. Traditional hierarchies or more flexible systems?
Division of responsibilities
Chain of command
Line authority
Flattening hierarchies
Accountability
Delegating responsibilities
Empowerment

7. Types of company structure MK: pp.22-23
Hierarchical (pyramidal)
Functional
Matrix
Team
Flattening hierarchies? Flat organisation?
Advantages/disadvantages of each type?

8. Assignment: COMPANY STRUCTURE (MK, pp.22-23)
HIER.
FUNCT.
MATRIX
TEAM
advantages
disadvantages

9. Division of responsibilities
What are you responsible for?
What are you in charge of?
What are your responsibilities?

10. Chain of command and line authority
Who is your superior?
Who do you report to?
Who are you responsible to?
Who are you accountable to?
Who are you subordinated to?
Who do you receive instructions from?

11. Chain of command and line authority
Who can appoint YOU?
promote
remove
dismiss
Who reports TO YOU?
Who is accountable to you?

12. For example, …

13. ORGANISATION UNITS DEPARTMENTS DIVISIONS SECTORS SECTIONS
BUSINESS UNITS
ARMS

14. ORGANISATION UNITS The company consists … is composed ... is divided …
is made …
contains …
…departments/division/sectors/
sections/business units/ arms…

15. ORGANISATION UNITS The company consists OF… is composed OF…
is divided INTO…
is made UP OF…
contains …
…departments/division/sectors/
sections/business units/ arms…

16. DIVISION vs DEPARTMENT
Usually product-based
(or market-based)
e.g.
Food Division
Cosmetics Division
Automotive Division
Plastics Division
European Division
Asian Division
Usually function-based
e.g.
Production Department
Finance Department
Purchasing Department
Marketing Department
Sales Department
HR Department
PR Department
R&D Department
IT Department
ICT Department

17. DIVISION vs DEPARTMENT
Usually product-based
(or market-based)
e.g.
Food Division
Cosmetics Division
Automotive Division
Plastics Division
European Division
Asian Division, …
Usually function-based
e.g.
Production D.
Finance D.
Purchasing D.
Marketing D.
Sales D.
Human Resources (HR) D.
Public Relations (PR) D.
Research & Development (R&D)
Information Technology (IT) D.

18. Make sentences.Use the following: -consist of, contain, report to, -be accountable/responsible/subordinated to, -composed of/divided into/made up of

19. 2.The Production Deparment ... the Cosmetics and the Food Division.
Make sentences.Use the following: -consist of, contain, report to, -be accountable/responsible/subordinated to, -composed of/divided into/made up of
1.The company ... four ....
2.The Production Deparment ... the Cosmetics and the Food Division.
3. Department managers .... the Managing Director.
4. The Cosmetics and the Food division managers ... the Production Manager.

20. Help needed? 1.The company CONSISTS... four DEPARTMENTS.
2.The Production Deparment IS DIVIDED .. the Cosmetics and the Food Division.
3. Department managers REPORT .... the Managing Director.
4. The Cosmetics and the Food division managers ARE ACCOUNTABLE... the Production Manager.

21. Key: 1.The company CONSISTS OF four DEPARTMENTS.
2.The Production Deparment IS DIVIDED INTO the Cosmetics and the Food Division.
3. Department managers REPORT TO the Managing Director.
4. The Cosmetics and the Food division managers ARE ACCOUNTABLE TO the Production Manager.
Use the other expressions from Slide 17 to replace the phrases above.

22. MANAGEMENT AND CORPORATE GOVERNANCE
The Board of Directors
The Chairman
Executive directors (inside directors)
Non-executive directors (outside directors)

23. The management team CEO – Chief Executive Officer
(the company’s president) or
Managing Director (MD)
CFO - Chief Finance Officer
(senior vice-president)
COO – Chief Operations Officer …

24. Croatia The Supervisory Board The Management Board or
The Board of Directors

25. Wikinomics and the future of companies (MK, p.21)
Title?
Synonym for ‘cooperate’?
Opposite to ‘outsourcing’?
A word linking wikinomics and outsourcing?