COMPANY STRUCTURE

1
COMPANY STRUCTURE
2
People involved in corporate structure

• shareholders
• management
• workforce

3
Workforce

• employees /staff/personnel
• senior staff ? junior staff
• higher-positioned ? lower-positioned
• superiors ? subordinates
• Mary is Kates superior. Kate is Marys
  subordinate.

4
Management

• Top management
• senior management, upper management
• Middle management
• Lower management

5
Types of company structure MKp.22-23, home
reading

• Advantages/disadvantages?
• Hierarchical (pyramidal)
• Functional
• Matrix
• Team
• Flattening hierarchies? Flat organisation?

6
DIVISION OF RESPONSIBLITIES

• What are you responsible for?
• What are you in charge of?
• What are your responsibilities?

7
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?

8
Chain of command and line authority

• Who can appoint YOU?
• promote
• remove
• dismiss
• Who reports TO YOU?
• Who is accountable to you?
• Who do you give instructions to?

9
DELEGATION

• Are responsibilities delegated?
• Centralised decision-making
• vs.
• Decentralised decision-making
• Flattening (fewer layers in a hierarchy)

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For example,
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ORGANISATION UNITS

• The company consists of
• is composed of
• is divided into
• is made up of
• contains
• departments/division/sectors/
• sections/business units/ arms

12
DIVISION vs DEPARTMENT

• Usually product-based
• (or market-based)
• e.g.
• Food Division
• Cosmetics Division
• Automotive Division
• Plastics Division
• European Division
• Asian Division,

• Usually function-based
• e.g.
• Production Department
• Finance Department
• Purchasing Department
• Marketing Department
• Sales Department
• HR Department
• PR Department
• RD Department
• IT Department
• ICT Department

13
DIVISION vs DEPARTMENT

• Usually product-based
• (or market-based)
• e.g.
• Food Division
• Cosmetics Division
• Automotive Division
• Plastics Division
• European Division
• Asian 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 (RD)
• Information Technology (IT) D.

14
Management and corporate governance

• The Board of Directors
• The Chairman
• Executive directors (inside directors)
• Non-executive directors (outside directors)

15
The management team

• CEO Chief Executive Officer
• (the companys president)
• or
• Managing Director (MD)
• CFO - Chief Finance Officer
• (senior vice-president)
• COO Chief Operations Officer
• (senior-vice president)

16
Croatia

• The Supervisory Board
• The Management Board
• or
• The Board of Directors

17
Wikinomics and the future of companies

• MK, p.21
• Title?
• Synonym for cooperate?
• A word linking wikinomics and outsourcing?
• Opposite to outsourcing?

18
AssignmentCOMPANY STRUCTURE (MK, pp.22-23)
HIER. FUNCT. MATRIX TEAM
key words
advantages
disadvantages