COMPANY STRUCTURE. People involved in corporate structure shareholders management workforce.

COMPANY STRUCTURE

People involved in corporate structure

shareholders management workforce

WORKFORCE

employees /staff/personnel

senior staff ≠ junior staffhigher-positioned ≠ lower-

positionedsuperiors ≠ subordinates

Mary is Kate’s superior. Kate is Mary’s subordinate.

MANAGEMENT

Top management

Senior management

Middle management

Lower management

Strict hierarchies or more flexible systems?

Division of responsibilities Chain of command Line authority Flattening hierarchies Accountability Delegating responsibilities Empowerment

Types of company structure MK: pp.22-23

Hierarchical (pyramidal) Functional Matrix Team

Flattening hierarchies? Flat organisation?

Advantages/disadvantages of each type?

Assignment:COMPANY STRUCTURE (MK, pp.22-23)

HIER. FUNCT. MATRIX TEAM

key words

advantages

disadvantages

Division of responsibilities

What are you responsible for?

What are you in charge of?

What are your responsibilities?

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?

Chain of command and line authority

Who can appoint YOU? promote

remove dismiss

Who reports TO YOU?Who is accountable to you?

For example, …

Managing Director (MD)

Marketing Manager

Production Manager

Finance Manager

HR Manager

Cosmetics DivisionManager

Food DivisionManager

ORGANISATION UNITS

DEPARTMENTSDIVISIONSSECTORSSECTIONSBUSINESS UNITSARMS

ORGANISATION UNITS

The company consists ?…is composed ?...is divided ?…is made ? ?…contains …

…departments/division/sectors/

sections/business units/ arms…

ORGANISATION UNITS

The company consists OF…is composed OF…is divided INTO…is made UP OF…contains …

…departments/division/sectors/

sections/business units/ arms…

DIVISION vs DEPARTMENT

Usually product-based(or market-based)

e.g.Food DivisionCosmetics DivisionAutomotive DivisionPlastics Division

European DivisionAsian Division

Usually function-based

e.g.Production DepartmentFinance DepartmentPurchasing DepartmentMarketing DepartmentSales DepartmentHR DepartmentPR DepartmentR&D DepartmentIT DepartmentICT Department

DIVISION vs DEPARTMENT

Usually product-based(or market-based)

e.g.Food DivisionCosmetics DivisionAutomotive DivisionPlastics DivisionEuropean DivisionAsian 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.

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

Managing Director (MD)

Marketing Manager

Production Manager

Finance Manager

HR Manager

Cosmetics DivisionManager

Food DivisionManager

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.

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.

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.

MANAGEMENT AND CORPORATE GOVERNANCE

The Board of Directors

The Chairman Executive directors (inside directors)

Non-executive directors (outside directors)

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(senior-vice president)…

Croatia

The Supervisory Board The Management Board

or

The Board of Directors

Wikinomics and the future of companies (MK, p.21)

Title? Synonym for ‘cooperate’? Opposite to ‘outsourcing’? A word linking wikinomics and

outsourcing?