Comparing the Four Forms of Organization

Although most large companies are organized on a line-and-staff basis, the line organization is usually the best form for smaller businesses. The committee form is used to a limited extend in major corporations. The matrix approach is used increasingly by both medium-sized companies and large, multiproduct firms to focus diverse organizational resources on specific problems or projects.

(Based on: Kurtz D., Boone L., Boone and Kurtz Business)

 

III. Here is an abstract from currently used Company Operating Agreement. Translate this text and be ready for its discussion on the basis of active vocabulary, key terms quiz, review and discussion questions.

ORGANIZATION

Formation.

The parties enter hereto into this Agreement for the purpose of setting forth their mutual rights and obligations. The Managers shall forthwith execute and cause to be filed any assumed or fictitious name certificates as may be required by applicable law, as well as any other documents and instruments as may be necessary or appropriate in connection with the continuation of, and the transaction of business by, the Company. The Company shall be treated as a partnership for income tax purposes but not for any other purpose.

Name

The name and style under which the business of the Company will henceforth be conducted is “ NORTH STAR Ltd. ”

Purpose, Character of Business and Powers

The Company is formed initially for the specific purpose of the Business, and shall conduct any other business or pursue any other business purpose permitted under applicable law as approved by the Members in accordance with Section 3.5 of this Agreement.

Principal Business Office

The principal office of the Company shall be at 401 E. Las Olas Boulevard, Bank of America Tower-14^th Floor, Fort Lauderdale, FL 33301, USA or at such other place as may be designated by the Managers.

Registered Office; Registered Agent

The registered agent of the Company for service of process on the Company in the State of Florida is International Cement Group LLC. The address of the registered office of the Company in the State of Florida is 401 E. Las Olas Boulevard, Bank of America Tower-14^th Floor, Fort Lauderdale, FL 33301, USA or at such other place as may be designated by the Managers.

Effective Date; Term

The Company commenced its existence on the date on which the Articles of Organization were filed in the office of the Secretary of State of the State of Florida and shall continue perpetually (the “ Term ”), unless dissolved or terminated (and not reconstituted by at least a Majority in Interest of the remaining Members, as provided for in this Agreement) pursuant to the Act or any provision of this Agreement.

Members

Each of the Members has been admitted to the Company. At the sole discretion of the Managers, additional Members may be added to the Company under terms and provisions determined in the sole discretion of a majority of the Members.

Limited Liability

Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member of the Company.

Scope of Member Authority

Unless otherwise expressly provided in this Agreement, no Member shall have any authority to act for, or assume any obligations or responsibility on behalf of the Company or any other Member. Nothing contained herein shall constitute the Members as partners with one another in any matter (other than for federal income tax purposes) or render any of them liable for the debts or obligations of any other Member. The Members do not have the actual or apparent authority to cause the Company to become bound to any contract, agreement or obligation, and the Members shall not take any action purporting to be on behalf of the Company.

(Based on: Company Operating Agreement)

 

ACTIVE VOCABULARY

accountability   auditor board of the directors “buck-passing” chain of command   chief accountant chief executive delegation of authority   departmentalization deputy director designated person director-general general meeting of the company increasing profitability legal counsel (advisor) line-and-staff organization line department line manager line organization logistic support division   manufacture marketing department market share   matrix organization “mom-and-pop”   organization chart project manager (superintendent) shareholder (stockholder) staff manager retailer subordinate to be accountable to… to come into play to coordinate activities

ответственность; подотчетность; возможность учета; учет; отчетность ревизор, аудитор совет директоров (правление Общества) перекладывание ответственности на других цепь инстанций (возникающая в результате делегирования прав и ответственности на более низкие уровни организации) главный бухгалтер исполнительный директор, глава корпорации, фирмы передача прав и ответственности подчиненному (делегирование полномочий) подразделение на отделы заместитель директора назначенное лицо генеральный директор общее собрание акционеров (участников) Общества увеличение прибыльности (рентабельности) адвокат; совет юристов; юрисконсульт линейно-функциональная организационная структура департамент прямого действия (непосредственно имеет дело с людьми, занимается оперативной деятельностью) линейный руководитель линейная организационная структура отдел (подразделение) материально-технического снабжения (АХО) производитель коммерческий отдел, отдел реализации, отдел сбыта доля на рынке; доля участия; удельный вес компании в обороте рынка; удельный вес товара в обороте рынка матричная организация семейный (имеется в виду небольшой магазин или какое-либо мелкое предприятие, обычно управляемое семейной парой) организационная схема руководитель проекта (суперинтендант)   акционер (участник) Общества, держатель акции или доли в компании функциональный руководитель розничный торговец зависимый, подчиненный быть подотчетным … начать действовать (вступать в действие) координировать виды деятельности

IV. Translate the following abstract of currently used Company Constitution from Russian into English and be ready for its discussion on the basis of active vocabulary, key terms quiz, review and discussion questions.