superior
boss
senior
director
manager
subordinate
assistant
junior
staff
employee
worker
Company structure
Unit 3
Phrases to describe line of
command. Make pairs:




To be in charge of
To support
To be supported by
To be accountable to





To be responsible
for
To be responsible to
To assist
To be assisted by
To report to
Phrases to describe line of
command.
1.
2.
3.
4.
4.
To be in charge of sg
To support sy
To be supported by sy
1.
3.
To be responsible for sg
To assist sy
To be assisted by sy
To be accountable to sy
To report to sy
4.
To be responsible to sy
2.
Use the previous phrases to fill in the
gaps:





The Area Sales Manager ____ the Head of
Sales.
The Marketing Manager is _____ the
Managing Director.
Human Resources are ____ employing staff.
Our team of sales reps is ____ the Sales and
Marketing Department.
Interns may also be called to ___ the head of
the Budget Section in monitoring the status of
projects.





The Area Sales Manager reports to/ is
responsible to/ is accountable to the Head of
Sales.
The Marketing Manager reports to/ is
responsible to/ is accountable to the Managing
Director.
Human Resources are responsible for/ are in
charge of employing staff.
Our team of sales reps is responsible for/ in
charge of the Sales and Marketing Department.
Interns may also be called to assist /support the
head of the Budget Section in monitoring the
status of projects.
Hierarchical/pyramidal structure
Hierarchical









Definition:
One person or a group of people at the top and an
increasing number of people below them at each
successive level
Advantages:
Clear chain of command
All know their place, the kind of decisions they can
make
Disadvantages:
Activities can be too complicated for a single
hierarchy
no responsibility on lower levels (not motivating)
No unplanned collaboration
Functional structure
Functional structure
Departments are usually part of a
hierarchy
Functional









Definition:
Business organized according to function or
role. (e.g., finance, marketing, HR)
Advantages:
Easier management than large hierarchical
structure
Efficiency (experts grouped together)
Disadvantages:
concern for success of dept. only (not co.)
Slower decision making
Conflicts between departments
Decentralized structure:
“Large organizations making a range of products are often
further divided into separate operating division.” (MK, p. 22)
Decentralized structure



Definition:
Separate operating divisions
organization along product lines, territory or
clients, e.g, Philips Lighting, Philips Healthcare,
Philips Domestic Appliances and Personal Care
Matrix structure
Matrix structure explained


The matrix structure overlays two organisational
forms: the FUNCTIONAL and the PROJECT
ORIENTED structure. In a matrix structure, there are
two official reporting lines: one to the manager of
the specialist function and the other to the project
manager.
For example, all engineers may be in one
engineering department and report to an
engineering manager, but these same engineers
may be assigned to different projects and report to a
project manager while working on that project.
Therefore, each engineer may have to work under
several managers to get their job done.
Matrix structure (pl. matrices)








Definition:
People report to more than one superior
Advantages:
Motivational: Authority and autonomy at lower
levels too.
Experts from different fields collaborate
Disadvantages:
matrices involving several departments are
too complex
conflicting loyalties
Team/ Project oriented









Definition:
temporary groups responsible for 1 project 
split up
Advantages:
Autonomy
motivation
Disadvantages:
Decision making can be difficult
relational problems
only small and self-disciplined teams with a
strong leader function well
Flat or horizontal organizations







How else can you say: “reduce the chain of
command”?
Take out layers of management, flatten the company
structure
Why are companies flattening their hierarchies?
Motivation: managers delegate responsibilities and
decision making to staff
To encourage collaboration within the company
Cutbacks: companies economize in recessions
Reduced need for administrative staff due to advanced
IT systems
Rephrase these sentences. Use the
prompts.






Employees feel more concern for their own department
than for the whole of the company.  Employees are...
Employees are more concerned with their own
department ...
The company was forced to make some cutbacks (n.)
in the current recession. Noun  verb
The company was forced to cut back (v.) in the current
recession.
The company downsized the workforce by eliminating
some layers of middle management. Say it in 3 words!
The company flattened its hierachy.
Pixar: the lounge and unplanned
collaborations
Apple’s new headquarters
(plan)
Future trends:
Reading: MK, p. 21



Define ‘wikinomics’.
Define outsourcing.
What is the connection between the two?
Listening: Corporate structure
http://www.youtube.com/watch?v=3AIZglt38NA
Answer these questions:
 Who runs publicly traded companies?
 Who are the members of the management team?
 Who does the management team report to?
 How is the Board of Directors set up?
 What are the two main tasks of the B of D?
 Helps direct the company’s _________.
 Protects the _________ investment.
Match up the position with the responsibilities
that go with it:
A. Chief Operations Officer: Responsible
for the corporation's operations, looks
1. Chairman
after issues related to marketing, sales,
production and personnel.
of the
B. Leader of the corporation, runs the Board
Board
and maintains communication with the
2. CEO
CEO and high-level executives
3. COO
C. Chief Executive Officer: responsible for
the entire operation of the corporation
4. CFO
and reports directly to the chairman and
board of directors. (Other name:
Managing Director)
D. Chief Finance Officer: Also reporting
directly to the CEO, he is responsible for
analyzing and reviewing financial data,
reporting financial performance,
preparing budgets and monitoring
expenditures and costs.
Corporate structure of publicly traded
companies
Fill in the blanks:
S_________
_____________
Chairperson
_______
______
Finance
manager
Accounting
manager
_______
Marketing
manager
Sales
manager
Personnel
manager
Corporate structure of publicly traded
companies
Shareholders
Board of Directors
Chairperson
CEO (or MD)
CFO
COO
Finance
Accounting
Marketing
Sales
Personnel
manager
manager
manager
manager
manager
HAND-IN HOMEWORK ASSIGNMENT



Describe Testech company’s structure shown
on the next slide.
Use RB/ p. 64 for help.
DUE: NEXT LECTURE (02 December)
Testech’s company structure