Match the words (1-7) with the explanations (a-g).

1. board of directors

2. authority

3. CEO

4. structure

5. executive officer

6. ownership

7. chairman

 

a. the manner of construction or organization

b. legal right of possession; proprietorship

c. a person who presides over an assembly, meeting, etc

d. the power or right to control, judge, or prohibit the actions of others

e. the highest-ranking corporate officer

f. the executive who is responsible for a company's operations

g. governing body of an incorporated firm.

Answer the questions before reading the text.

1. What is an organization chart?

2. What purpose does organization chart serve?

3. What is the difference between responsibility and authority?

 

Read the text paying attention to the words in bold and do the tasks after it.

What Is Organizational Structure?

What do we mean by the term organizational structure? Consider a simple analogy. In some ways, a business is like an automobile. All cars have engines, four wheels, fenders, and other structural components. They all have passenger compartments, storage areas, and various operating systems (fuel, braking, climate control). Although each component has a distinct purpose, it must work in accord with the others.

Similarly, all businesses have common structural and operating components, each composed of series of jobs to be done and each with a specific overall purpose. From company to company, these components look different and fit together differently, but in every organization, components have the same fundamental purpose – each must perform its own function while working in concern with others. So, organizational structure can be defined as the specification of jobs to be done within an organization and the ways in which these jobs relate to one another.

Although all organizations feature the same basic elements, each must develop the structure that is most appropriate for it. A large manufacturer operating in a strongly competitive environment requires a different structure than a local barbershop or video store.

Large British companies generally have a chairman of the board of directors who oversees operations and a managing director (MD) who is responsible for the day-to-day running of the company. In smaller companies, the roles of chairman and managing director are usually combined. Americans tend to use the term president rather than chairman, and chief executive officer (CEO) instead of managing director. The CEO or MD is supported by various executive officers or vice- presidents, each with clearly defined authority and responsibility (production, marketing, finance, personnel, and so on).

Top managers are reviewed (and sometimes dismissed) by a company’s board of directors. They are supported and advised and have their decisions and performance constituted by the board. The directors of private companies were traditionally major shareholders, but this does not apply to the large public companies with wide share ownership[45].

Training

PRODUCTION

HUMAN RESOURCES

FINANCE

MARKETING

Buying

Marketing

Personnel

Customer Accounts

Financial Services

Production

Sales

Wages and Salaries

Distribution

Packaging

Quality

Maintenance

After-Sales Service

Advertising

5. Study the organization of the company below.

Which department:

a. puts the products in boxes and crates?

b. places ads in magazines?

c. pays the staff?

d. purchases supplies?

e. sells the products to customers?

f. plans how to sell new products?

g. services the machines and equipment?

h. arranges courses for the staff?

i. recruits new employees?

j. manufactures the products?

k. invoices the customers?

l. looks after customers’ problems and sends them to customers?

m. dispatches theproducts and sends them to customers?

n. organizes control systems to prevent mistakes?

o. deals with taxation, investment, and cash management?

 

Below is a diagram showing the structure of a “mixed” type of multinational company based in the USA.

Domestic Telecom-munications Division

Corporate Staff (Corporate Planning, etc.)

Domestic Business Systems Division

Worldwide Defence Systems Division

Pacific Division (Telecom-munications and Business Systems)

International Division (Telecom-munications and Business Systems other than in the Pacific region

Chief Executive Officer (CEO)

a) some activities are organized into domestic, regional and international divisions, others into worldwide product divisions.

b) Now write questions and answers using
responsible for / comes under.

Example:

- Who is responsible for Business Systems in the Pacific?

- That comes under the Pacific Division.

 

1. Corporate Planning __________________________________

2. Defence Systems in Africa ____________________________

3. Telecommunications in USA __________________________

4. Business Systems in Europe ___________________________

5. Telecommunications in SE Asia ________________________

7. Read the whole text and then draw the organization chart:

I think we have a fairly typical organization for a manufacturing firm. We’ve divided into Finance, Production, Marketing and Human Resources departments.

The Human Resources department is the simplest. It consists of two sections. One is responsible for recruitment and personnel matters; the other is in charge of training.

The Marketing department is made up of three sections: Sales, Sales Promotion, and Advertising, whose heads are all accountable to the marketing manager.

The Production department consists of five sections. The first of these is Production Control, which is in charge of both Scheduling and Materials Control. Then there’s Purchasing, Manufacturing, Quality Control, and Engineering Support. Manufacturing contains three sections: Tooling, Assembly, and Fabrication.

Finance is composed of two sections: Financial Management, which is responsible for capital requirements, fund control, and credit, and Accounting.

 

a. What are the other four verbs in the text that mean the same as to consist of?

1. ……………. 2. ……………. 3..…………… 4. ……………..

 

Board of Directors

Chairman

Managing Director

Research and Development

Marketing

Sales

Production

Legal

Accounts

Personnel

Factory Departments

Maintenance

Purchasing

Transport

Management Accounts

Financial Accounts

Data Processing

8. Below is part of the structure of a medium-sized subsidiary of a UK parent company.

Members of the Group Internal Audit team are visiting your firm. You must help the auditors by answering their questions as in the example.

Question	Answer
1. I have a question about the company’s sales budget	1. You’ll have to see the sales people about that.
2. Could you help me? It’s about last year’s development costs.	2.
3. I’d like to know exactly when you delivered these goods.	3.
4. Our Computer Audit Team wants to visit you soon. Who should I ask about it?	4.
5. Do you have purchase contracts with all your suppliers?	5.
6. I’d like to discuss these cash-flow forecasts. Who do you think could help me?	6.

 

Grammar

Write sentences from the words in brackets.

Example: (the premises/ move/ two months ago)

The premises were moved two months ago.

1. (the house/ paint/ last months) _____________________________________________________

2. (the guests/ show/ places of interest/ yesterday) _____________________________________________________

3. (the delegation/ head/ by the Minister of Foreign Affairs) _____________________________________________________

4. (you / invite/ to the meeting/ last week?) _____________________________________________________

5. (the headquarters/ rebuilt/ last year) _____________________________________________________

6. (when / this document/ sign?) _____________________________________________________

 

Complete the sentences as in the example.

Example: I did not realize that somebody was recording our conversation.

I didn’t realize that our conversation was being recorded.

1. I didn’t realize that somebody was using my computer. __________________________________________________

2. I didn’t realize that they were building a new ring road round the city.
__________________________________________________

3. I didn’t realize that the car was being repaired. __________________________________________________

4. I didn’t realize that he was stealing my wallet. __________________________________________________

5. I didn’t realize that they were spending company’s money on their own needs. __________________________________________________

6. I didn’t realize that our colleagues were not getting new tasks. __________________________________________________

Rewrite the sentences in past perfect passive.

1. Somebody has cleaned the room. ___________________________________________________

2. They have postponed the meeting.

_________________________________________________

3. Somebody has taken my umbrella.

_________________________________________________

4. They have repaired a photocopier.

_________________________________________________

5. My boss has moved the furniture in his office.

_________________________________________________

6. The have cancelled the meeting.

_________________________________________________