COMPANY STRUCTURE

What Does Company Structure Mean?

Company structure is a system outlining how the activities are organized and directed to achieve
goals. These activities will generally include the rules to be followed and the roles and
responsibilities of those within the company.

Different Levels of Management

Overview

Most organizations have three management levels:

• Low-level managers;

• Middle-level managers; and

• Top-level managers.

These managers are classified in a hierarchy of authority, and perform different tasks. In many
organizations, the number of managers in every level resembles a pyramid.

Top-level Managers

• The board of directors, president, vice-president, and CEO are all examples of top-level
managers.

• These managers are responsible for controlling and overseeing the entire organization. They
develop goals, strategic plans, company policies, and make decisions on the direction of the
business.

• In addition, top-level managers play a significant role in the mobilization of outside resources.

• Top-level managers are accountable to the shareholders and general public.

Middle-level Managers

General managers, branch managers, and department managers are all examples of middle-level
managers. They are accountable to the top management for their department’s function.

Middle-level managers devote more time to organizational and directional functions than top-
level managers. Their roles can be emphasized as:

• Executing organizational plans in conformance with the company’s policies and the objectives
of the top management;
• Defining and discussing information and policies from top management to lower management;
and most importantly

• Inspiring and providing guidance to low-level managers towards better performance.

Low-level Managers

Supervisors, section leads, and foremen are examples of low-level management titles. These
managers focus on controlling and directing.

Low-level managers usually have the responsibility of:

• Assigning employees tasks;

• Guiding and supervising employees on day-to-day activities;

• Ensuring the quality and quantity of production;

• Making recommendations and suggestions; and

• Up-channeling employee problems.

Organizational Structure

Organizational structure aligns and relates parts of an organization, so it can achieve its
maximum performance. The structure chosen affects an organization's success in carrying out its
strategy and objectives.

Leadership should understand the characteristics, benefits and limitations of various

organizational structures to assist in this strategic alignment.

4 types of organizational structure

Functional

This is the most common organizational structure. It breaks up a company according to the
specifics and specialization of its workforce. This means the enterprise is divided into
departments, such as sales, operations, and marketing.

Functional organizational structure is used mostly with small and medium-sized businesses.

Divisional

The divisional organizational structure organizes the activities of a business around geographical,
market, or product and service groups.
Each such division contains a complete set of functions. Thus, the green widget division would
handle its own accounting activities, sales and marketing, engineering, production, and so forth.

Flat

A flat organizational structure means that an organization has few (if any) levels of management
between the workforce and the highest-level managers. The absence of middle managers places
more authority, such as decision-making functions, at the worker level.

A flat is a new structure used in many startups. With this structure, the traditional chain of
command is not in effect. Instead, the company allows its employees to have more autonomy.

Matrix

The matrix structure is the least used because it tends to be confusing since employees are
"matrixed" across different departments, divisions, and superiors. Employees in a matrix
structure may find themselves working and responsible for duties in different departments, such
as customer service and sales.

A matrix organizational structure is a workplace format in which employees report to two or more
managers rather than one manager overseeing every aspect of a project. For example, an
employee may have a primary manager they report to as well as one or more project managers
they work under.
 MONEY MATTER
Characteristic of Money
• Durability is when an item is able to withstand all the hardships and is still able to maintain
to be undamaged and usable after a long term of usage

• Portability, which also serves as a medium of exchange, means that money can be movable
from place to place to be used as monetary transaction to be exchanged for goods and services.

• Furthermore, divisibility is a characteristic which means the money can be divided into small
units and that it can be used in exchange for goods and services. As to function as the medium
of exchange, as it is divisible, it can be used to purchase all kinds of goods with different values.

• Moreover, uniformity means that all types of the same denomination of money must consist
of purchasing power. It is a characteristic to perform the function of standard of deferred
payments.

• Limited supply is a characteristic which helps in storing the value of money, meaning that
constraints on the amount of money in the monetary circulation ensure that values remain
constant for the currency. Currently most of the respective country’s government has the
responsibility to control an adequate money supply based on market with their monetary
policies.

Functions of Money
As a general rule, economists have finalized and defined all the four types of functions of money
which are medium of exchange, measurement of value, standard of deferred payments and lastly
store of value.
• Medium of Exchange. Ever since it being introduced into the economic society, money has
been fulfilling its duty to act as an essential function which is medium of exchange in the
society. Money facilitates well as our monetary transactions to purchase and own both tangible
and intangible goods and services as a medium of exchange. As manufacturers sell their
productions to the wholesalers or retailers in exchange of money as an earning. While
wholesalers and retailers sell the same finalized goods to the final consumers in exchange of
money as their own earning. Similarly, all service providers of the society sell their services
in exchange of money as their earning. Then, all these sections of the economic society which
are manufacturers, wholesalers, retailers and service sellers such as doctors, lawyers and
more will then use the earnings which they have made to consume on other goods and services
which they need or want.
• Measurement of Value. It measures provides the fixed value of all kinds of goods and services
which are manufactured and produced in the economy. Money performs as unit of value and
acts as the standard of value of all goods and services. In barter trading, it is very burdensome
and challenging to measure and decide the quantity or volume of goods to be exchanged for
another given quantity of goods.
• Standard of Deferred Payments. Money is able to act as a monetary transaction to be used to
pay both before or over time for other goods. This means that goods and services can be paid
for installments over a period of time such as hire purchase. Unlike barter trade, transactions
do not need to be settled at a lump sum at a time. Money, besides acting as a monetary support
of current transactions, it also acts as the monetary support of deferred payments.

• Store of Value. Money must hold its value over time so it must act a store of value. As before,
goods were beyond possible to store its surplus value under barter economy. After the creation
of money, the following issue has been solved efficiently. Retailers and sellers can now store
their surplus retailing earnings. Saving money is now secure in value without having to worry
its loss of value. Rather than spending today, you can store it for use in the future.

Type of Money
• Fiat Money (Banknotes and coins)
Fiat money (fiat currency) is money whose value is not based on its inherent value but is based
on an authoritative decision (fiat) by the governing body. The government declares it as legal
tender and it must then be accepted as a form of payment everywhere.
• Commodity Money (Precious metals (gold, silver), salt, beads, alcohol, etc.)
Unlike fiat currency, the value of commodity money is intrinsic; its value comes from the
commodity it is made from. If the money is destroyed, it cannot be replaced. It is also probably
the earliest form of money.
• Representative Money (Certificates, paper money, token coins)
Representative money, like fiat money, has no value of its own. Unlike fiat money, it is backed
by a commodity. As a commodity-back money, it could be exchanged for precious metals (like
gold) held within a bank vault. It was easier to carry a certificate around rather than a chest
full of gold.
• Fiduciary Money (Checks, bank drafts)
Deriving from the Latin word fiducia, to trust, fiduciary money works on the promise and trust
that it will be exchanged for fiat or commodity money by the issuer (bank). People are not
required to take it as a form of payment because it is not a government-ordered legal tender.
• Commercial Bank Money (Funds in a checking account)
Commercial money (also known as demand deposits) is a claim against a bank for the purchase
of goods and services (through the means of withdrawing in person, check, ATMs, or online
banking). It is a debt-created currency by the bank. They create more money through a process
called fractional-reserve banking. In this, only a certain percentage of money the bank “has”
is held within it. The other percent is given to others in the form of loans, in doing so, the bank
makes back more money from the interest and fees charged to customers.
 TELEPHONING

Businesses have numerous other options for communicating now, such as e-mail, texting and
social media. Telephone communication may be slower than its new-media counterparts, but it
still has benefits in an increasingly impersonal world. The telephone call, which connects a caller
with a human voice, creates a connection that other media may lack and is still an important
business component. An efficient business telephone system streamlines good communication
between organization and customers. The telephone offers a faster interaction than e-mail, is
more personal, and easy and quick to use.

Personal and Immediate

A phone call is the best way to get a personal response. If the person you called is available, you
can take care of business on the spot. Phone calls have a vocal backup in the form of voice mail.
The caller can leave a detailed voice message, without the restriction of a certain number of
characters or typing a text message on a tiny cell-phone keypad.

Communication is More than Words

On the telephone, the tone you use gives dimension and emotion to words, increasing the
effectiveness of the communication. Certain body language, such as smiling and standing while
talking, may come through in the conversation. Texting and emails are simply words open to
interpretation by the receiver, without the benefit of voice tone or body language.

The Value of Interactive Communication

Teleconferencing calls bring people together from all over the organization at a fraction of the
cost of travel and meeting facilities. Attendees can phone in using a toll-free number and access
code to join a virtual conference room where members can interact with the moderator and
other members. Conference calls can be used in conjunction with video conferencing to view
presentations, ask questions via the internet and discuss answers with all attendees.

Confidentiality

Some communications, such as condolences, disciplinary issues, sensitive and confidential

issues, should be handled with a personal phone call. Taking the time to make a phone call
carries more weight than an impersonal text or email. Without the opportunity for two-way
communication, sensitive issues may be misinterpreted. Text messages and emails become legal
documents and can be retrieved as evidence long after deletion. Some businesses monitor and
record phone conversations between employees and customers for training purposes.
Making A Good First Impression

1. Your Voice

Use your voice to convey the interest, alertness & courtesy normally exhibited in face-to-face
conversation.

2. Visualize The Caller

Know what exactly how the person looks through his voice.

3. Communicate Positively (Speak with Enthusiasm)

A monotonous (one tone) voice suggests indifferent and inattention.

4. Your Speech Patterns

Speak at a proper speed.

5. Your Vocabulary & Attitude

How To Answer Phone Calls

● Answer promptly, great the caller pleasantly and identify yourself, company etc.

● Be crisp and clear yet friendly and polite

● Call should be put to the right department; if there are more than one call

● Clarify which one the caller wants to speak to

● Before we answer the phone, try to put on a smile. Its helps to project a friendly pleasant
voice over the phone.

● Make sure that your pronunciation is clear, and your intonation is natural

● A well-modulated voice is also very important.

How To Put a Caller on Hold

● When a call comes in for a colleague who is on another line or who is away from his desk for
a short while, place the caller on hold.

A “Could you hold on for a moment, please?” sound much better than just “Hold on”.

● Try not to put a caller on hold for too long. If you must have the line to get whatever
information the caller has requested, give that caller the option of holding or being called back.

● If you have to keep the caller on hold for a long time, apologize for the delay.

How To Deal with Problem Calls

● Keep your voice cool when you have a rude or abusive caller on the other end of the line.

● Instead of being thrown of track by angry or offensive remarks, focus on the problem (not
the person) and think of a possible solution.

● Try to keep your voice pleasant and convey to the caller that you are trying to find a solution
for him/her. Let them know that you will put him through to someone else who can help
them, if you are unable to help.
 LETTER OF INQUIRY

Inquiry letter is a type of request for information about a product, service, job vacancy or other
business information. A letter of inquiry asks someone for specific information. The function of
this letter is to respond to advertising from sources of information such as print or electronic
media about a product/service when we are interested in the information.
In some cases, such as a request for promotional material, the recipient will have a clear interest
in responding to your letter. In other cases, such as a request for specific information on a product,
the recipient may or may not be as motivated to respond quickly. Consequently, always make the
tone of the letter friendly and make it easy for the recipient to identify and provide the
information you need.
Some of the questions used in inquiry letter include names and types of products, product
specifications (types, sizes, qualities, colors etc.), the price of the items, discount prices, payment
methods from buyer to seller, how to deliver products from seller to buyer, and some other
benefits.

Follow this format in writing a letter of inquiry

1. In the first paragraph, identify yourself and, if appropriate, your position, and your institution
or firm.
2. In the second paragraph, briefly explain why you are writing and how you will use the
requested information. Offer to keep the response confidential if such an offer seems
reasonable.
3. List the specific information you need. You can phrase your requests as questions or as a list
of specific items of information. In either case, make each item clear and discrete.
4. Conclude your letter by offering your reader some incentive for responding.
Example of an Inquiry Letter

PT FIRSTOLAN SKY
Road No. 20 East Pegangsaan
Tel. (021) 5314567 Post Code 12345
Jakarta

No: 15/FS/III/14 2 March 2017

Marketing Manager STORES HEAVENS

Setiabudi Road 99
Central Java

Subject: Request for supply of computer equipment

With Regards,

We intend to be wearing the device computer device assembly, which we will use
as a tool for our company in the work of the employees of our company.

Therefore, we hereby request that you send the price list information about the
following computer equipment:

1. Terms of payment
2. Rebate
3. Delivery mode
4. After-sales service

In addition, we ask that the send catalogs and brochures of the goods. Top your
attention, we say thank you.

Yours faithfully,

Widya Niwayan Agustiv

Director
Acknowledgement letter

Acknowledgement letter is a letter of receipt which confirms the reception of certain documents.
For example, if an employee sends a resume or CV to apply for a job to an employer, then the
employer has to acknowledge the employee by sending a letter. This letter could be sent via mail
or by post. It is a necessary document which has to be kept saved for future purposes.

The acknowledgement could be of different types of acknowledgment letter such as an

acknowledgement sent when sending a document, or while receiving a document, for businesses,
for projects, for a resignation letter, etc. It is based on situations for which we acknowledge a
person for receiving a certain document, details, or sometimes even when we have received the
products.

In some companies or businesses, the acknowledgement letter plays an important role. A business
is said to be completed only when a letter of receipt is exchanged between the two parties. It
works as proof that the commitment made between the two parties has been accomplished. An
acknowledgement letter is a professional courtesy routinely extended by successful people in the
building and maintenance of productive business relationships.

Example of an Acknowledgement Letter

Refusal Letter

Refusal Letter is a letter written to notify the reader about the decision of the writer to decline an
invitation, an offer, a claim, a request or any other matter.

Anybody can write a refusal letter as long as there is a reason for it. You can be an employee
declining a job offer or an employer rejecting a candidate’s job request. If you are a businessman
and you do not like a proposal, you convey to the concerned in written.

For Attention

Reason for Refusal Providing no reason makes things anonymous and

unacceptable as the reader is unable to analyze the
refusal

Be Polite Courtesy is an absolute part of Professionalism.

Being a professional means that you do not get
emotional or personal.

Do not highlight the Rejection It is clear that you don’t need to make your refusal
appear in Bold or Underlined, just mention the
rejection once in the beginning, there is no need to
repeat it, it can appear offending.

Encourage Optimism A pessimist news needs to be curtailed with

optimistic thoughts to ensure a positive outcome;
the news can become more acceptable this way. It
will also pacify the reader’s disappointment.

Example of Refusal Letter: Rejecting Proposal of a New Vendor