Reading and Discussing

The traditional company structure is well known but business is changing and the company structure cannot remain the same. Let us learn some new ideas concerning the company chart…

Task I. Answer the following questions:

1. What types of company structures do you know?

2. What are advantages and disadvantages of a traditional company structure?

3. What new elements can be introduced into it?

4. The Irish management thinker, Charles Handy, believes that the traditional company is dying. Do you agree or not? What do you think makes him think like that?

Task II. Read the description of the shamrock organization and compare it with the traditional structure.

The shamrock organization

This structure has three elements. Each element is called a leaf. The first leaf of the shamrock represents the organization’s core workers. These employees are usually qualified professionals and managers. They work very long hours and, in return, receive high salaries and generous benefits.

Work that is not essential to the organization goes to people in the second leaf of the shamrock. These people are normally self-employed and are specialists in certain kinds of work. They often sell their services to more than one organization.

The third leaf of the shamrock is the flexible labor force – temporary and part-time workers. The organization saves money because it only employs these people when it needs them.

(The Age of Unreason, Charles Handy)

Task III. Speak about advantages and disadvantages of the shamrock organization.

	Advantage	Disadvantage
For the company
For the core workers
For the self-employed people
For the flexible labor force
For you

Task IV. Work with your partner:

Discuss possible reasons to use this shamrock organization in business.

Use: to be reorganized, to reduce the pay, to keep the functions, to employ specialists, to manage the company better (worse), etc.

Task V. Talk about different types of company structures.

1. Study the scheme below and explain what type of the company structure is given.

2. State its differences with the shamrock company structure described in the text above (Task II).

Managing Director

Sales Manager

Use: is headed Departments: Marketing Department

is under Personnel Department

runs Public Relations Department

directs ….

is responsible for

is responsible to

Task VI. Discuss the following points:

1. Is it better to use self-employed workers or a flexible labor force to do the non-core jobs?

2. What do traditional structures and shamrock organizations have in common?

3. Why do companies often prefer to use a shamrock organization?

Task VII. Work in pairs.

Discuss the following points:

• How close is the structure of 3M to a shamrock organization?

• What are the ways in which it may use core workers, self-employed workers and a flexible labor force?

Task VIII. Read the three descriptions of company structures and match the titles with the texts.