UEF - BE - Unit 2 - Company Structure - Chau Nguyen - Full Lecture

Unit 2:
Company Structure
Page 21
Learning Objectives:
- Consider the different ways of organizing work

- Discuss potential conflicts between different
departments in a company
- Compare differences between large and small
companies
2
UEF | Business English | Unit 2: Company Structure | Nguyen Ngoc Bao Chau |
READING
Unit 3: page 21-24
4
Pre-reading
Administration
Sales & Finance &

Marketing Accounting
Research & Company Human

Development Departments Resource
Public Information
Relations Technology
Production &
Manufacturing
6
Pre-reading
Chose one of the 2 questions below to discuss in your
group:
1a. Which department of a company do you think is the most
interesting to work?
1b. Do you prefer to work alone or in a team? Why?
2a. Is it better to have one immediate boss or to work for more
than one manager?
2b. After graduation, would you like to work independently, as
a freelancer or an expert or a consultant, rather than work for
an organization?
7
Reading 1: Company structure (p.22)
8
1. The chain of command/ Vertical (Tall) structure
9
1. The chain of command/ Vertical (Tall) structure
• Leadership standards structure are vertical, with the most powerful member being the (CEO).
• The CEO communicates these wants through managers and supervisors
→ processes to employees.
• Large companies with many employees often use this type of structure to maintain workplace
efficiency.
10
2. Flattening structure/ Horizontal structure
11
2. Flattening structure/ Horizontal structure
• Small business owners (start-up) typically use a flat structure to organize their companies.
• Flat organizational structures can help a business maintain clear communication, keep a
modest budget and adhere to unique standards.
12
Flattening structure (Flat structure) vs. The chain of command (Tall Structure)
13
Tall. vs Flat Structures – Advantages and Disadvantages
Classify 19 characteristics below into the 2 groups:
A. Flat structure B. Tall structure
1. Faster decision making 10. Clearly defined roles and responsibilities

2. More authorities & responsibilities are 11. Decision making centralized to the top
given to employees 12. Less opportunities for promotion
3. More direct and effective communication 13. Clear progression & promotion ladder
4. Flexible and easily adapt to change 14. Ineffective and slow communication
5. High managerial workload 15. Slow decision making
6. Less clear specific job functions -> workload 16. Employees are less motivated
of staff may increase 17.Less freedom & responsibilities for staff
7. Possible only in smaller organizations 18. High management cost
8. Close supervisory control 19. Greater autonomy and decision making to
9. Obvious chain of command, the staff -> more productive
14
Tall. vs Flat Structures – Advantages and Disadvantages
Flat structure Tall structure
▪ smaller hierarchical setups than the tall ▪ more employees, fixed responsibilities
one. ( ~3 levels) and defined structure within their
▪ greater autonomy and decision making hierarchy (>3 levels)
to the staff -> more productive ▪ management can be more serious 🡪
▪ Junior employees and managers alike employees may have less freedom to
might interface with customers 🡪 more make decisions.
communication with customers ▪ only the lower levels of employees talk to
▪ less management staff 🡪 management the customers 🡪 relatively low
has less control over policies, codes and customer communication.
processes. 🡪 more relaxed work ▪ too many managers in the system🡪
environment 🡪 junior team members slow decision making
can make independent decisions. ▪ high number of managers, supervisors
▪ a few managers to manage business and employees 🡪 a “more commands”
affairs🡪 smaller chain of command 🡪 work environment 🡪 employees are
allow junior employees to have more less motivated.
control over their work
16
3. Functional structure
• A functional—or role-based—structure is one of the most common organizational structures.

• This structure often follows the vertical structure.
• It has clearly defined roles, job functions, chains of command and decision-making authority.
• However, this structure runs the risk of limiting employee growth.
• It also has the potential for a lack of cross-department communication and collaboration.
17
3. Functional structure
18
4. Divisional structure
• The product based structure is hierarchical (vertical). It is structured around the company’s products.
• It benefits companies that have several product lines.
• But it can foster inefficiency if product teams have similar functions, and without good communication
across teams, companies run the risk of incompatibility among various product teams.
19
4. Divisional structure
▪ The geographical structure is a good for companies with a broad geographic footprint in an industry.
▪ It enables the company to create specific organizational structures that align with the location’s culture,
language and professional systems.
▪ It is similar to the product-based structure.
20
Pepsi has a tall hierarchy composed of functional corporate groups & market/ product
divisions.
21
5. Matrix structure
• With a matrix organizational structure, there are multiple reporting obligations.
For instance, a marketing specialist may have reporting obligations within the marketing and product teams.
• A matrix structure offers flexibility, enables shared resources and fosters collaboration within the
company.
• However, it can be complex because confusion about responsibilities and communication, especially
among new employees.
22
5. Matrix structure
23
6. Team-based structure
24
25
Answers:
1. 1. hierarchy or
chain of
command
2. 2. function
3. 3. autonomous
4. 4. line
authority
5. 5. to report to
6. 6. to delegate
26
hierarchy (n) /ˈhaɪə.rɑː.ki/ (pl. –ies)
- A system in which people or things are
arranged according to their importance.
Ex: He rose quickly through the political
hierarchy to a party leader.
- The group of people in control (in the

upper level) of an organization (nhóm người
kiểm soát/ điều hành/ chỉ huy)
hierarchical (adj) /ˌhaɪəˈrɑː.kɪ.kəl/

arranged in a hierarchy
Ex: a hierarchical society/ / organization
hierarchically (adv)
27
autonomy (n) /ɔːˈtɒn.ə.mi/
- The ability to act and make decisions
without being controlled by anyone else
Ex: A campaign in Scotland was held for greater
autonomy.
- The freedom of a country, a region or an

organization to govern itself independently
Ex: The universities want to preserve their
autonomy from central government.
- autonomous (adj) /ɔːˈtɒn.ə.məs/

- autonomously (adv)
28
delegate (v) /ˈdel.ə.ɡeɪt/
- To give a particular job, duty, right… to
someone (often in lower position)
Ex: As a boss, you have to delegate authorities
and responsibilities to your staff.
- To choose/elect someone represent the
group
Ex: The company director cannot be here, so she
has delegated her deputy to present it for her.
delegate (n) /ˈdelɪɡət/

- A person who is chosen/ elected by a group to
represent the group (ex: at a meeting)
Ex: More than 1000 delegates attended the
three-day conference.
29
authority (n) /oːˈθorəti/
- The power or legal right or ability to control
Ex: He has no authority (=ability) over his student.
- Official permission to do something
Ex: I gave my lawyer authority to act on my behalf.
- An expert on a particular subject
Ex: He is an authority on Roman history.
- An official organization, often created by the government,
which is responsible for managing a particular duty or
service
Ex: The health authorities are investigating the problem.
The housing/ tax/ authority
- A group of people with official responsibility for a
particular area of activity
Ex: Local authorities would not allow public marches.
- (Knowledge) the power to influence people because they
respect your knowledge or official position
- Ex: He spoke clearly with authority on the topic.
authorisation (-ization) (n) / authorise (-ize) (v)
30
31
Reading comprehension
Read the text and answer questions (p.22)

1. What is the main advantage of a chain of command?
2. Why is it not usually possible to organize a large organization in a
hierarchy?
3. In what ways can dividing a company functionally cause problems?
4. What factors might lead company to flatten their hierarchies?
5. According to the text, what kind of managers might not want to
delegate decision making?
6. What is the potential disadvantage of matrix management systems?
7. Under what circumstance might teams not be effective?
32
Reading comprehension
Vocabulary
Match up the verbs and nouns below to make common word combinations.
Answers:
• delegate decision making/ responsibilities
• give instructions/ priority
• make decisions
• motivate staff
• take decisions
Other collocations:
• Delegate tasks/ power/ authority…
• Make strategic plans/ mistakes/ a living /money…
• Take responsibilities/ orders/ a job…
• Give a chance/ a choice…
34
Post-reading:
Disscussion: Incompatible goals (p.24)
The text mentions the often incompatible of the finance, marketing and production (or
operation) departments.
Clarify the following strategies according to which department probably favour them
1. A factory working with full capacity
2. A large advertising budget
3. A large sales force earning high commission
4. A standard product without optional standards
5. A strong cash balance
6. A strong market share for new products
7. Generous credit facilities for customers
8. High profit margin
9. Large inventories to make sure that products are available
10. Low research and development spending
11. Machines that give the possibility of making various different products
12. Self financing (using retained earnings rather than borrowing)
35
Discussion: Big and Small companies (p.24-25)
1. What other benefits of working in a large company can you

think of?
2. What other reasons might make someone prefer to work in
small companies?
45
Write a notes for a short presentation on your company or
a company you would like to work for. And give a short
presentation to class
Structure for notes: You should mention

+ What does your company do?
+ Where is it located?
+ How it is structured?
+ Why is it successful?
+ Why you want to work for this company?
46
47

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Unit 2:

- Consider the different ways of organizing work

Unit 3: page 21-24

Sales & Finance &

Research & Company Human

1. Faster decision making 10. Clearly defined roles and responsibilities

• A functional—or role-based—structure is one of the most common organizational structures.

- The group of people in control (in the

hierarchical (adj) /ˌhaɪəˈrɑː.kɪ.kəl/

- The freedom of a country, a region or an

- autonomous (adj) /ɔːˈtɒn.ə.məs/

delegate (n) /ˈdelɪɡət/

Read the text and answer questions (p.22)

1. What other benefits of working in a large company can you

Structure for notes: You should mention

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