COMPANY STRUCTURE. 1.A disadvantage of … is that …

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Presentation transcript:

COMPANY STRUCTURE

1.A disadvantage of … is that …

People involved in corporate structure  shareholders  management  workforce

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

MANAGEMENT  Top management Senior management  Middle management  Lower management

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

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 appointYOU? promote remove dismiss  Who reports TO YOU? Who is accountable to you ?

For example, … Managing Director (MD) Marketing Manager Production Manager Cosmetics Division Manager Food Division Manager Finance Manager HR Manager

ORGANISATION UNITS DEPARTMENTS DIVISIONS SECTORS SECTIONS BUSINESS UNITS ARMS

ORGANISATION UNITS The companyconsists ?… is composed ?... is divided ?… is made ? ?… contains … …departments/division/sectors/ sections/business units/ arms…

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

DIVISIONvsDEPARTMENT 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

DIVISIONvsDEPARTMENT 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.

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 Cosmetics Division Manager Food Division Manager Finance Manager HR Manager

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 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

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

Assignment: COMPANY STRUCTURE (MK, pp.22-23) HIER.FUNCT.MATRIXTEAM key words advantages disadvantages

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