3. Now, check how well you understood the main pioints of the text by answering the following questions.

1. How else can the line structure be called?

2. What is the basic principle of this type of organizational structure?

3. How is staff structure similar/different from the line structure of an organization?

4. What are the two standard criticisms of a functional structure?

5. Why, do you think, it still remains so popular?

6. Why has matrix structure appeared?

7. Has it solved all problems of line and functional structures?

Practically thinking

4. Now, try to put the theory about organization structure you have read above into practice.

Having chosen the case you like best, role-play the situations in pairs.

Case 1

a) Imagine that you are The Managing Director of the company. Your task is to promote the organizational structure of your company to other companies as far as your company is a profitable one. To your mind it is due to the organizational structure.

b) Imagine that you are a very curious journalist from a local newspaper. You’d like to be an investigative journalist, but for that you should find any material. Some reliable sources told you that the company’s profit (you are going to interview the Managing Director of this company) does not depend on its structure, but on double-entry book-keeping. Try to find out as much as possible about the company’s structure and the way its profit depends on it.

Case 2

a) Imagine that you are a leader of the trade union of the company with the line organizational structure. You think that this type of structure is inappropriate as far as there is too much red tape in the company. Try to influence the representative of the Board of Directors in order he/she could provoke changing the organizational structure of the company.

b) Imagine that you are representative of the Board of Directors. Your job is to protect everything that concerns the company’s structure and your authority as well. But you don’t want the staff to go on strike. Prove to the leader of the trade union that this particular organizational structure is the most appropriate for the company.

Point for discussion

Levels of Management

5. Discuss as a class giving your reasons.

1) Which types of business or business structures are popular in your country?

2) Do you know anyone who has set up a business? What type is it? Were they successful?

3) How many levels of management does an organization need to be successful?

4) How different are the responsibilities of managers at different levels?

6. Management of a large company is often hierarchical. Here is a typical model of management organization showing one division within a company. Complete any missing words. If you have problems, look at the box below.

Note different job titles at different levels of management.

Area Company Department Director Executive Finance Human Junior Manager Middle Officers teams

7. Choose the correct alternative to check understanding.

1. The organization model above is a flat/hierarchical structure.

2. The model shows a traditional/an innovative structure.

3. The model shows a matrix/functional structure.

4. It is probably a services/manufacturing company.

5. It is typical of a small or medium sized enterprise (SME)/large enterprise.

6. The business is probably simple/complex.

8. Read this short presentation of the management team of this British company. Then write the correct letters (a-n) in the right places in the organization chart.