Unit 3Unit 3

Company StructureCompany Structure

Teaching Objective This unit aims to help students To get a general understanding of

organizational structure To learn to describe organization charts To discuss the potential conflicts among

the different departments of an organization,

To compare and contrast big and small companies, and

To learn some useful words and expressions to do so

Unit content

1.      How are companies organized?

2.      Competition and communication

3. Big and small companies

The project to be The project to be accomplishedaccomplished

Group work: (Choose one from the following two projects)

1. Do a survey on a selected company’s organizational structure and write a description of it at about 500 words. Try to discuss its advantages and drawbacks, and identify the potential conflicts (if there are any) among different departments under such structure. Present your research findings in the class at the end of this unit.

The project to be The project to be accomplishedaccomplished

2. Select two companies (one big and one small) in the same line of business and write a report of about 500 words. Compare and contrast their company structures. Explain which company you would prefer to work for and give several reasons. Do a presentation on your research findings at the end of this unit.

1. 1. How are companies How are companies organized?organized?

11a Group work--Discussiona Group work--Discussion

  What kink of organization do you want to work for?

  In which department? (e.g. production, finance, accounting, marketing, sales, human resources)

  What do you think your first position will be? Do you expect to have one immediate boss, to

work for more than one superior, or to be part of a team? Give your reasons.

 What do you know about organizational structure?

1b. Vocabulary1b. Vocabulary1. autonomous – C 自治的，自主的 -- independent, able to take decisions without consulting a

higher authority. e.g. ~ region / country / group 自治区 /国家 /团体2. decentralization – E 分散管理 -- dividing an organization into decision-making units that are

not centrally controlled. 3. function – B （部门）职能 – a specific activity in a company, e.g. production, marketing,

finance4. hierarchy – A 等级 – a system of authority with different levels, one above the other5. line authority – F – the power to give instructions to people at the level below in

the chain of command6. report to – G – to be responsible to someone and to take instructions from

him or her7. subordinates – D 部下，下属 – people working under someone else in a hierarchy

1c Reading1c Reading

Pre-reading Qs for discussion:

1. How are most organization structured?

2. Do you know any ways that the hierarchy is usually divided up?

3. What do you expect the disadvantages of different structure would be?

1c Reading1c ReadingVocabulary: Hierarchical or pyramidal structure: 等级结构 / 金字塔结构 Successive ： following one after another 连续的，连接的 e.g. two visits on successive days 连续两天的访问 command ： n. order; control Comp: Assistant to the Marketing Manager Assistant Marketing

Manager To credit sb. with…: to give credit to (sb. for sth.) 将。。。归功于某

人 Efficient ： working well and without waste 高效率的 Incompatible ： not suitable to be together with… 不能和谐共存的，不

兼容的 e.g. His plan is ~ with my intentions. 他的计划和我的不一致 Simulate: to imitate 模仿，模拟 simulation: n. e.g. A sheet of metal is shaken to ~ the noise of thunder Inherent: forming a natural part (of a set of quality, a character etc.)

固有 的，与生俱来的 Comp: inherit v. 继承 Pass sth. on to sb. Split up 分手，解散 Self-discipline 自制力，自我约束

1c Reading1c ReadingPost-reading Qs for discussion:Post-reading Qs for discussion:

1. Read the text about company structure and label the diagrams

2. Describe and compare the four structures mentioned in the text.

• functional structure• matrix structure• line structure• staff position

Functional structure With a functional structure, a company is

organized according to its different functions it has to carry out. For example, if a company’s activities include marketing, customer service, finance, and HR, it structures the company with four departments, each performing one function of these four. Each functional department is responsible for the decision-making concerning its own field, but not others. For example, the marketing department can not make financial decisions without consulting the finance department. Likewise, the HR department is responsible for the personnel or human resources, but not the goods selling or money matters of the company.

Matrix structure A matrix structure differs from a functional

structure in that, while people within a functional structure report to the immediate superior within the functional department, people within a matrix structure report to more than one superior. For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production.

line structure This is a kind of functional structure.

However, the functional “line” of the this structure is wholly autonomous. The teams of the line are grouped temporary for an entire project and are split up as soon as the project is successfully completed. Thus, teams are often not very good for decision-making, and the line structure is likely to suffer from relational problems.

Staff position Staff position is very common in

organizations. Some people in an organization have colleagues who help them: for example, there might be an Assistant to the Marketing Manager. This is known as a staff position. ……..

1d Comprehension1d ComprehensionGroup discussion: Group discussion: Which of the three paragraphs most accurately Which of the three paragraphs most accurately

summarizes the text, and why?summarizes the text, and why?Answer: The second summary is the choice. The first summary stresses the disadvantages

of hierarchies much more strongly than the text, and disregards the criticisms of matrix management and decentralization.

The third summary is misleading! Matrix and teams are designed to facilitate communication among functional departments rather than among autonomous divisions.

1e Discussion1e Discussion The text mentions the often incompatible

goals of the different functional departments. Classify the different strategies according to which departments would probably favor them.

Referent answers: Production department: 1 4 11 Marketing department: 2 3 6 7 9 (11) Financial department: 5 8 10 12 (11)

1f Describing company 1f Describing company structurestructure

1. Look at the example of part of a company organization chart and learn to describe it

2. Work in group: talk about the company structure of one company / organization you are familiar with

An example of description

The Chief Executive Officer reports to the President and the Board of Directors. The company is divided into five major departments: Production, Marketing, Finance, Research & Development, and Human Resources. The Marketing Department is subdivided into Market Research, Sales, and Advertising & Promotions. The Finance Department contains both Financial Management and Accounting. Sales consists of two sections, the Northern and Southern Regions, whose heads report to the Sales Manager. The Sales is accountable to the Marketing Manager.

2. Competition &communication

2a. Vocabulary2a. VocabularyMatch up the words and the definitions:Match up the words and the definitions:1.1. industrial belt – C -- an area with lots of industrial industrial belt – C -- an area with lots of industrial

companies, around the edge of a citycompanies, around the edge of a city2. wealth – F – the products of economic activity3. productivity – E – the amount of output produced (in a

period of time, using a certain number of inputs)4. corporate ethos – A – a company’s ways of working

and thinking 公司信仰5. collaboration – G – working together and sharing ideas6. insulted or isolated – B – alone, placed in a position

away from others 隔离，使孤立 e.g. Don’t insulate your grandma with the outside world

even if she is old e.g. The village is isolated due to the lack of buses7. fragmentation – D – breaking something up into pieces 碎片，破碎

2b. Listening2b. Listening1. Listen to a short extract from a talk

by Professor Diamond called “How to get rich”.

Match the part-sentences 1-8 with A, B, C, D

Answers: 1 – A 2 – B 3 – D 4 – D 5 – B 6 – C 7 – A 8 – C

2. Work in pairs; rearrange the part-sentences to make up a short paragraph summarizing Diamond’s ideas about the best form of business organization.

Answers: g – b – c – h – I – e – k – f – d – j – a

Answer to 2b - 2Answers: g – b – c – h – I – e – k – f – d – j – a Isolated companies or groups are at a

disadvantage, because most groups of people get most of their ideas and innovations from the outside. So in order to maximize productivity, creativity, innovation, and wealth, you should break up your business into a number of groups which compete but also communicate with each other quite freely. You should also exchange ideas and information with other companies, and regularly engage staff who have worked for your competitors.

3. Big & small companies

3a. Discussion3a. Discussion

1.1. Would you prefer to work for a big or a Would you prefer to work for a big or a small company or organization? Why? small company or organization? Why? What are the advantages of each?What are the advantages of each?

2.2. Choose one company (either big or Choose one company (either big or small) that you know of and think of small) that you know of and think of some reasons for which you would like some reasons for which you would like to work for it in the futureto work for it in the future

Read the statements, and decide whether they are about the advantages of working in a big or small company.

Referent answers: Big: 2 3 4 7 9 11 13 Small: 1 5 6 7 8 10 12 14

3b. Writing (homework for 3b. Writing (homework for groupgroup))

(Choose one from the following two projects)1. Do a survey on a selected company’s organizational

structure and write a description of it at about 500 words. Try to discuss its advantages and drawbacks, and identify the potential conflicts (if there are any) among different departments under such structure. Present your research findings in the class at the end of this unit.

2. Select two companies (one big and one small) in the same line of business and write a report of about 500 words. Compare and contrast their company structures. Explain which company you would prefer to work for and give several reasons. Do a presentation on your research findings at the end of this unit.