WORKFORCE
employees /staff/personnel
senior staff ≠ junior staffhigher-positioned ≠ lower-
positionedsuperiors ≠ subordinates
Mary is Kate’s superior. Kate is Mary’s subordinate.
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
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)…
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