COMPANY COMPANY STRUCTURESTRUCTURECOMPANY COMPANY

STRUCTURESTRUCTURE

Internal organisation of Internal organisation of business,business,

different ways of organizing different ways of organizing workwork

http://www.youtube.com/watch?v=3AIZglt38NA

http://www.youtube.com/watch?v=V89d6a8bsL8

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 STRUCTUREA company:

consists of departmentscontains departmentsincludes departmentsis made up of departmentsis composed of departmentsis divided into departments

People are:

in charge of somethingaccountable to somebodyresponsible to somebody responsible for somethingsupported by somebodyreport 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 ManagersMiddle ManagersJunior Managers

Staff/Employees

Shop Floor

Board of DirectorsPresident

+Chief Executive Officer

Senior ManagersMiddle ManagersJunior 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

http://ed.ted.com/on/1dB3KRkO

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: 22,232. 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 __________________

http://www.youtube.com/watch?v=wtMORWO5h9Y&feature=related What groups govern corporations? _______________________ What are their responsibilities?

________________________________________________________________________________________________________________________________________________________________________________________________________

http://www.youtube.com/watch?v=STED8sSHJU8&feature=relatedWrite down the explanation of the following words: empowerment _____________________________________ hierarchy ________________________________________ downsizing _______________________________________ What is a flat hierarchy? __________________________________________________________________________________

________________________________________________________________________________________________________________________