1. Decide whether the following statements are true or false. Support yourself

with arguments from the text.

1. Alfred Sloan’s book was mainly about the organizational problems of General Motors.

2. In a decentralized company most key functions are the responsibility of the head

office.

3. The majority of companies have either a totally centralized or decentralized structure.

4. William Durant and Alfred Sloan had a completely different approach to running

General Motors.

5. Alfred Sloan believed in what could be called ‘coordinated decentralization’.

6. When Alfred Sloan joined General Motors he established a new system which gave

Head Office more control of the corporations finances.

7. Note down the benefits which a company can gain by decentralizing.

8. Explain what is meant under the phrase: “ It is one thing to prescribe diversity,

decentralization and differentiation. It is another to manage it”

Language focus

1. Match the words or phrases on the left with the words from the text on the

right.

1) the right to make decisions or give a) to authorize

instructions

2) the employment of new staff b) to demotivate

3) to be responsible for c) recruitment

4) to start or establish d) to show initiative

5) to pass authority down e) to balance

6) complete in itself f) to delay doing something

7) to raise or introduce a subject g) authority

(for discussion)

8) to move or act slowly h) core values

(often on purpose)

9) to transfer or give i) to delegate responsibility

10) to give official permission j) flexible

11) freedom to act independently k) to stress

12) something everybody is talking about l) to have authority

13) to remove somebody’s incentive or m) to hand something over

desire to do well

14) to fix objectives n) the ‘buzz’ word

15) adaptable o) to set up

16) to adopt a middle position between p) self-contained

17) to emphasize q) autonomy

18) things the company believes in and r) to set goals

considers very important

19) ability to assess a situation and s) to bring up the subject of

decide on what action to take

independently

2. Complete the following sentences with suitable forms of the words.

authorize innovate innovative control delegate function

autonomy initiative

1. In many department store groups, buying and finance are two ____ which are handled by Head Office.

2. Managers who like power find it difficult to ____ responsibility.

3. To stay competitive, high technology firms must constantly ____ , or else their products become out of date.

4. When you delegate authority in a business, you lose a degree of ____ over certain functions.

5. In some multinational organizations, subsidiaries are given a great deal of ____ - they rarely have to consult Head Office.

6. ____ firms often make the mistake of not concentrating enough on marketing.

7. In our factory, the General manager is ____ to spend up to 1,000 dollars a month on repairs and maintenance.

8. I like my staff to make decisions for themselves, but they seem afraid to show any ____.

3. Big companies employing a large workforce have complex internal structures with separate specialist departments in charge of different functions. Match each function with the department responsible for it.

Administration:

Board of Directors with a Chairman (GB) or President (US)

Managing Director (GB) or Chief Executive Officer (US)

Production Sales and Research and Personnel Legal

Marketing Development

Transport Market Advertising and Finance Accounting

Research Promotion (Accounts)

Purchasing

model

Research and Development department carries out market research.

Functions:

1. carries out market research

2. works with the factory unit

3. runs the mail room for all incoming and outgoing correspondence

4. draws up contracts

5. operates the firm’s lorries, vans and cars

6. works to improve the firm’s product range

7. is responsible for recruitment and selection

8. pays wages and salaries

9. is in charge of the welfare of employees

10. includes data processing services

11. advises on corporate regulations

12. arranges delivery of goods to customers

13. organizes the activity of the sales representatives

14. provides office services, such a typing and photocopying

15. creates (develops) new products

16. keeps a record of all invoices (счёт фактуры) and payments made and received

17. brings the firm’s goods and services to the attention of the potential customers, persuade people to buy them

18. orders all supplies needed by the firm

19. organizes training courses

20. organizes quality control to maintain product standards

21. sets out strategy for the company’s future

22. handles advertising and new product launches