БАШМАКОВА Л,zip / Башмакова Л.Ю. UNIT 2

UNIT 2 COMPANY STRUCTURE

LEAD-IN

“Every company has two organizational structures: the formal one is written on the charts; the other is the everyday relationship of the men and women in the organization”. (Harold S. Geneen)

1.1. Discuss these questions. Look at the typical answers and agree or disagree with them.

1.What can you contribute to the company's goals?

a)I’m hard working. I enjoy carrying out duties assigned to

me, and will always ensure that my job is complete.

b)I’m a team player. I enjoy working with others.

c)I can work off my own initiative. I can be trusted to do my job without need to be supervised.

d)I am punctual and efficient. I’m good with time keeping and planning.

2.What type of a business would you like to work in?

a)I’d like to work in a large multinational corporation like Adidas, Siemens, Microsoft, McDonald’s, KFC, Ford, IKEA etc.

b)I’d like to work in a small firm in my native city/town.

c)I’d like to work in a dot-com company.

d)I was always dreaming to set up my own business.

3.What is a sole trader?

a)It’s an association of two or more people carrying on a business with the goal of earning a profit.

b)It’s a legal entity (юридическое лицо) with its own rights, priveleges and liabilities separate from the members who created it.

c)It’s a business owned and run by one person, where there is no legal distinction between the owner and the business. The individual acquires all benefits and risks of running it.

d)It’s a business in which the shareholder(s) own the businesses and their responsibility for

company debt is limited to the amount they have invested in the company.

KEY VOCABULARY

1)Accounting department – бухгалтерский отдел

2)advancement/promotion – продвижение; повышение; рост

3)(to) appoint – назначать

4)asset – собственность физического или юридического лица; актив (компании)

5)authority – полномочие

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6)(to) be accountable to/be responsible to – отвечать перед к-л; быть подотчетным

7)board of directors – совет директоров

8)CEO (chief executive officer) (AmE)/managing director (BrE) – генеральный директор компании/президент компании

9)customer – покупатель, потребитель

10)(to) dissolve – прекращать деятельность

11)drawback – недостаток

12)expenses – расходы

13)goods – товары

14)hierarchy – иерархия

15)income – доход

16)(to) involve in – вовлекать в

18. legal entity – юридическое лицо

17)limited liability – ограниченная ответственность

18)(to) make a profit – получать прибыть; извлекать прибыль

19)to pay off debts – погашать задолженность

20)(to) pay a tax – платить налог

21)Personnel/Human Resources department – отдел кадров

22)Production department – производственный отдел

30) Purchasing department – отдел материально-технического снабжения/отдел закупок

23)(to) run a company – управлять компанией

24)(to) report to – находиться в прямом подчинении; докладывать к-л

25)R&D department – научно-исследовательский отдел

26)(to) provide opportunities – обеспечивать возможности

27)shareholder – акционер

28)sole owner/proprietor(BrE or AmE)/sole trader (BrE) – частный предприниматель

29)stock exchange – фондовая биржа

30)(to) stand for – означать, расшифровываться

READING TEXT 1

2. Skim the text to grasp the general idea. Decide if the following statements are true (T) or false (F).

1)Shareholders are the owners of the company which shares they have.

2)A managing director is responsible for producing management accounts and financial reports.

3)A junior manager might be accountable to an employee.

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4) Within a hierarchical organizational structure employees can use their chance of promotion.

Company structure

Companies can have many organizational structures, but the most typical one consists of the shareholders, board of directors, the officers and employees. Shareholders own parts or shares of the company, invest money for future dividends and for the potential increased value of their shares and choose directors of the company to look after their interests.

At the top of the company hierarchy is the Board of

director and senior executives etc. The Managing Director or Chief Executive Officer (CEO) has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments.

Senior executives or managers head the various departments or functions of the company. Traditional departments include Human Resources (HR), Accounting, Marketing, Sales, Administration, Technology and Production. HR department is responsible for recruitment and selection of new employees, employee motivation and a range of other people focused activities. A Marketing department is responsible for market research and marketing planning.

The larger the department, the more titles it has as specific duties are assigned to people within a department. The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm. The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organising manpower to meet the customers' orders. The Sales Manager is responsible for making contact with customers and obtaining orders from those contacts. The Company Accountant controls all the financial dealings of the company and is responsible for producing management accounts and financial reports.

Reporting in organisations often takes place down the line. An employee might report to a supervisor, who reports to a junior manager, who then reports to a senior manager – communication and instructions can then be passed down the line.

This particular organizational model is sometimes described as resembling a pyramid, with the decision making process starting at the top and each successive layer having authority over the next.

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This means that with the exception of the individual who is considered at the top of the pyramid, such as CEO, everyone in the organization is directly accountable to someone else.

There are some advantages to using a hierarchical organizational structure. Typically, each position within the company structure is well defined. Hence, it is very easy to determine who should be responsible for specific issues that may arise during the operation of the company. Employees have easy access to the requirements for promotion to certain positions and know how to go about rising within the organizational structure. The chance to receive support from the company, including financial support for education in areas relevant to the operation, is often present, which helps to motivate qualified employees to remain with the organization rather than seek opportunities elsewhere.

There are also some potential drawbacks. Since the commands are so clearly defined, the effectiveness of the operation often rests on how well people at each level manage those who report to them. This means that corrupt management can often do a great deal of damage before the issue can be addressed and corrected. In addition, if managers are not open to feedback from employees, this can help to reduce morale in the workplace, limit potential for advancement based on personal whims of the managers, and prompt valuable employees to seek opportunities with other organizations.

3. Find in the text English equivalents to the following Russian words and word combinations.

Совет директоров, акционеры, управлять компанией, быть ответственным перед, стоимость акций, ставить цели, руководить отделом компании, докладывать/представлять отчет, руководящий состав, получать поддержку, должность четко определяется, недостаток, преимущество, прихоть/желание, иметь властные полномочия над к-л, решать вопросы, выполнять заказы, передавать дальше/перенаправлять, определять, искать возможности, иерархия, возлагать обязанности, оставаться в (компании), продвижение, ослаблять моральный дух.

4. Match the words and word combinations with their definitions.

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5. Insert the right preposition where necessary. Consult the text. Translate the expressions.

1.to report _____ a senior manager

2.to include _____ financial support

3.Distribution Manager is responsible _____ controlling the movement of goods

4.duties are assigned _____ people

5.to make contact _____ customers

6.to consist _____ the shareholders, the officers and employees

7.to be accountable _____ a supervisor

8.to receive support _____ the company

9.feedback _____ employees

7.Read the text again and answer the following questions.

1.What authority does the board have?

2.Who is the head of the department?

3.What departments does the company usually consist of?

4.Who reports to whom in a company hierarchy?

5.What is Sales manager responsible for?

6.Can a senior manager be accountable to a junior manager?

7.What are the advantages of a hierarchical organizational structure?

8.What are the drawbacks of a hierarchical organizational structure?

8.Write a Summary of the text.

VOCABULARY EXERCISES

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9.Match the parts 1 – 9 to the parts a – i to make sentences.

1.You should assign duties based

2.The most common structure found within organizations consists

3.In an organization of any size employees' responsibilities typically are defined

4.The managers of each segment report directly

5.An employee might be accountable to a supervisor

6.The only way to run a business from home

7.Ensuring that your customer's orders are met in a timely manner

8.One of the benefits of setting health and safety targets is

9.Companies that are going to start successful business or constantly seeking opportunities to grow and expand

a.to the president at the top.

b.of various departments such as engineering, development, marketing, finance, sales and human resources.

c.helps manage overall customer satisfaction.

d.who is accountable to a junior manager – communication and instructions can then be passed down the line.

e.that employees are healthier, happierand better motivated.

f.on employees' interests and capabilities.

g.is on the Internet.

h.will require excellent IT infrastructure to meet all their needs.

i.by what they do, who they report to, and for managers, who reports to them.

10.Read the conversation between Juan and Peter, where Peter explains the different

job titles in their company hierarchy/structure and do the task after.

Juan: Peter, have you seen the global email about the restructuring of the company. It says that the Board of Directors are going to make an announcement by the end of the month. What is the Board of Directors?

Peter: The Board of Directors or as it is often called The Board, is the group of people who make the big decisions about the company. About what we do and how we do it.

Juan: So they are the owners of the company?

Peter: In some companies yes, but in our case because we're a large multinational, no. Here, they are employed by the owners, the shareholders, to oversee or supervise the company for them. The Board is non-executive, which means they aren't involved in the day-to-day running of the company. The most important member of The Board is called the Chairman, in some companies the Chairman is called the President.

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Juan: So, if they don't run or manage the company, who does?

Peter: In our company the person responsible for the day-to-day running of the company is the Managing Director. They are the most senior managers in the company. In the United States, they are normally called the Chief Executive Officer (CEO).

Juan: So, what does a Finance Director do? Are they non-executive also?

Peter: No, a Finance Director is the job title for a senior manager who is responsible for the Finance Department. They are less senior than the Managing Director or Chief Executive Officer, who they have to report to. Normally, the boss of each department is called a Director, like Sales Director or IT Director. In America, the title of this position is Chief Financial Officer.

Juan: I think I understand. So under them in the company structure you have Managers, like us. And under the Managers, you have Supervisors. Is that right?

Peter: Basically. Although today it is more common to call a Supervisor, a Team Leader. They make sure that staff are doing what they should. Then under them, you have Analysts and Assistants, who don't have any management responsibilities. In theory the job title of Analyst is for a position where they have to analyze information or data. An Assistant is the general job title for a normal member of staff, like a Customer Care Assistant. But the title of the position depends on the company.

11.Complete the sentences with one of the words/phrases in italic in the task 10.

1.The American job title for the top executive manager in a company is (1)____ .

2.The title of the lowest positions in a company is (2)_____ .

3.The name of the people who have shares in a company is (3)_____ .

4.The most senior/top person on the Board of Directors is called the (4)_____ .

5.The job title of the staff that analyze information or data is (5)_____ .

6.The name of the group of people who represent the owners of the company is the (6)_____ .

7.The British title for the head of the finance department is (7)_____ .

8.When somebody is not involved in the daily running of a business, their role is (8)_____ .

9.A different job title for Supervisor is (9)_____ .

10.The American title for the head of the finance department is (10)_____ .

11.A different way to say “My boss is” is (11)_____ .

12.The British job title for the top executive manager in a company is (12)_____

12.Match the English words and word combinations with their Russian equivalents.

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13. Choose the option that is true. Pay attention to the words in the task 12.

1.A company is an organization that aims to make a profit/make a purchase for its owners and investors.

2.Companies make profits by selling goods or providing/producing services for a fee.

3.Companies have expenses/income such as salaries, production costs, and advertising costs.

4.If a company’s expenses/income from sales is greater than its costs, it makes a profit.

5.A company’s advertising/research and development department creates new products or improves existing products.

6.A production department is responsible for advertising/manufacturing products.

7.A sales department is responsible for dealing with customers when they make a profit/make a purchase.

8.A purchasing/advertising department buys everything the company needs, from raw materials to vehicles and office supplies.

10.A personnel/advertising department is responsible for recruiting and managing employees, and for cutting staff numbers when necessary.

14. Complete the text. Choose the words and word combinations in the correct form from the box.

assets – активы компании

to give a loan – предоставлять заем

be involved in – участвовать в, быть вовлеченным в legal entity – юридическое лицо

limited liability – ограниченная ответственность liabilities – обязательства

liable – связанный обязательством to last – длиться

to retain – сохранять, удерживать

to stand for – означать, расшифровываться stock exchange – фондовая биржа

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A company

Company is a separate (1) _____ to its shareholders. This provides shareholders with (2) _____

from any of the business’s debts beyond the value of their shares in the company (this is what Ltd

(3) _____ in a company name). However, if a shareholder (4) _____ in the running of the business (as a director, for example), and he or she is found to have traded recklessly, fraudulently or not in the company’s best interests, they can still be made (5) _____. Most financial lenders will only (6)

_____ a business _____ in exchange for a personal guarantee overriding limited liability.

There are two types of companies: private and public. Private companies have their shares owned within a private group, like a family for example, so they can (7) _____ control. Public companies have their shares publicly listed on the (8) _____ so they’re available to be bought by the general public and other companies.

Regardless of whether it’s a private or public company, shareholders have what is called limited liability. This means they can lose the value of their shares in the business. They’re not responsible for any other debts or (9) _____ the company owes.

As the company is a separate entity, it owns all the (10) _____ and all the liabilities itself. This separation also means the company is not tied to one individual or one generation of owners, so it can (11) _____ for as long as it remains viable.

15.Translate the text 2 into Russian. SPEAKING

16.Describe the company structure. Read and answer the questions.

1.What is the aim of any business?

2.How does a company make profit?

3.Who is at the top of the company hierarchy?

4.What authority does the Board have?

5.What is the most important member of the Board?

6.What is the Chief Executive Officer responsible for?

7.What are the roles played by shareholders in the company?

8.Who runs the company?

9.Is the company a separate legal entity?

10.What departments might any company include?

11.What is a production department responsible for?

12.What is HR department responsible for?

13.What is a sales department responsible for?

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14.What is a research and development department responsible for?

15.Who is at the top of each department?

16.Can you define the expression “reporting in organisations takes place down the line”?

17.What is the difference between a private and a public company?

18.What does Ltd stand for?

READING

TEXT 2.

17.Read the text and match the headings (a-d) with the gaps at the start of each paragraph.

a)Partnership

b)Corporation

c)Sole owner/proprietor (AmE)/sole trader (BE)

d)A limited liability company (LLC)

Different Types of Companies

__________

It is one of the most simplest and uncomplicated of all companies. Your business is built around you. The entire operation relies on you, but you can still employ others to help you. You’re 100% responsible for your business’s liabilities and its debts, but you also retain full control of the business and its profits.

The features of this business organization are:

Does not require to spend a lot of money to establish a business.

The dissolution procedure is very easy, simple and quick.

Any liabilities in business are the proprietor's personal liabilities.

Whenever the owner dies, the business organization also automatically stops existing.

The owner has unlimited liability in the organization.

You even pay tax through your personal IRD (Inland Revenue Department) number.

This form of a business structure is useful for people who have an expertise in a certain field and want to make money by applying that knowledge. There is no need to consult other people in the organization before taking any decision and also employees have no stock options. However, when it comes to taxation and other financial aspects, there is no difference between the proprietor's personal life and business, as it is regarded one and the same by the government. It is therefore important to have a good knowledge about these obligations, before deciding to start a business.

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