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Figure 2. The Five Common Forms of Departmentalization

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Task 5. Translate into Russian the following sentences from the text:

1)Functional departmentalization groups jobs by functions performed.

2)The basis on which jobs are grouped together is called departmentalization.

3)Every organization has its own specific way of classifying and grouping work activities.

4)Customer-oriented structures enable companies to better understand their customers and to respond faster to their needs.

5)In process departmentalization work activities follow a natural processing flow of products or even of customers.

6)In product departmentalization, each major product area is placed under the authority of a manager who is responsible for everything having to do with that product line.

7)During summer wildfires, the catastrophe team work on both local and corporate issues, including managing information technology, internal and external communication, tracking, resourcing, and vendors.

Task 6. Put the appropriate information into the table (on the Text B and Fig. 2):

Departmentalization

Description

Advantages

Disadvantages

 

 

 

 

 

Groups jobs by functions

 

Poor

 

performed. It can be used in

 

 

 

communication

 

all types of organizations,

 

Functional

 

across functional

although the functions

 

 

areas; limited view

 

change to reflect the

 

 

 

of organisational

 

organization’s purpose and

 

 

 

goals.

 

work.

 

 

 

 

Product

 

 

 

 

 

 

 

Geographical

 

 

 

 

 

 

 

Process

 

 

 

 

 

 

 

Customer

 

 

 

 

 

 

 

Cross-functional

 

 

 

 

 

 

 

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Text C: Types of Organizational Structures

Task 1. Learn new words from the Vocabulary:

to adopt – принимать

line structure – линейная структура

line and staff structure – линейная и штатная структура

authority – власть

profit – прибыль

production manager – руководитель производства

representative – представитель

to affect – влиять

to carry out – выполнять

hire and fire – нанять и уволить

supplies – поставки

the human resources department – отдел кадров

the public relations department – отдел по связям с общественностью

temporarily – временно

representative – представитель

to affect – влиять

to carry out – выполнять

hire and fire – нанять и уволить

supplies – поставки

flat structure – плоская структура

a broad span of management – широкий диапазон управления

breakdown of management levels – разбивка уровней управления

to occur – иметь место, встречаться, появляться

Task 2. Read the text and be ready to do the exercises given below the figures in the text and those after it.

Types of Organizational Structures

Companies generally adopt one of four organizational structures. These include:

line structure

line and staff structure

matrix structure

team structure

Each of these different types of organizational structures can be shown in an

organizational chart. An organizational chart is a visual representation of a

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business’s organizational structure. It shows who reports to whom within the company. It also shows what kind of work each department does.

Line Structure

In a line organization, authority originates at the top and moves downward in a line (see Figure 3). All managers perform line functions, functions that contribute directly to company profits. Examples of line functions include production managers, sales representatives, and marketing managers.

Line managers collect and analyse all of the information they need to carry out their responsibilities. Production managers, for example, hire and fire all of the assembly-line workers in their departments. They also order all of the supplies their department needs. Line organizations are common among small businesses. Larger companies usually require a different kind of organizational structure.

Figure 3. Line Structure

Task 3A. Working with charts task: In a line structure organization, managers make all decisions affecting their departments. What kinds of companies usually have line structures?

Line and Staff Structure

In mid-sized and large companies, line managers cannot perform all of the activities they need to perform to run their departments. In these companies, other employees are hired to help line managers do their jobs. These employees perform staff functions (see Figure 4).

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Figure 4. Line and Staff Structure

Staff functions advise and support line functions. Staff departments include the legal department, the human resources department, and the public relations department. These departments help the line departments do their jobs. They contribute only indirectly to corporate profits. Staff people are generally specialists in one field, and their authority is normally limited to making recommendations to line managers.

Task 3B. Working with charts task: Some organizations add staff positions to support line positions. What are some examples of staff positions?

Matrix Structure

Matrix Structure allows employees from different departments to come together temporarily to work on special project teams (see Figure 5) The purpose of this kind of structure is to allow companies the flexibility to respond quickly to a customer need by creating a team of people who devote all of their time to a project. Once the team completes the project, the team members return to their departments or join a new project team. Companies that undertake very large projects often use the matrix structure. Boeing, for example, regularly assigns employees to project teams that are created to design new aircraft. Large high-tech firms also frequently use the matrix structure.

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Figure 5. Matrix Structure

Task 3C. Working with charts task: In a matrix structure, employees work in a department but can be temporarily assigned to a project team. What happens to these employees when the team completes the project?

Team Structure

Many companies have abandoned the line and staff approach to organizational structure in favour of the team approach. A team structure brings together people with different skills in order to meet a particular objective (see Figure 6) More and more companies are using the team structure. They believe this structure will allow them to meet customer needs more effectively than the traditional structure. The team structure is very different from the traditional organizational structure. In the traditional structure, each level of management reports to a higher management level. In this kind of organization, senior managers need not approve decisions by lower-level managers. Instead, teams have the authority to make their own decisions. Employees often prefer the team structure because of its focus on completing a project rather than performing a particular task. One company that has successfully used teams is IBM. Beginning in 1990 the company introduced self-directed management teams that it organized around

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customer needs. Each team tries to determine what the customer is looking for and develop strategies with which to meet those needs. The approach helps the company respond quickly in competitive markets.

Figure 6. Team Structure

Task 3D. Working with charts task: The team approach differs from traditional organizational structures, which depend on many levels of management. What are some of the advantages of the team structure?

Flat vs. Tall Structures

A span of management is the number of employees who report to a manager. Organizations can be classified as being either tall or flat.

A flat structure is an organization that has a small number of levels and a broad span of management at each level. This calls for a good deal of delegation on the part of the manager. Employees have more power within the company. A tall structure is an organization that has many levels with small spans of management. In this case, power is centralized on the top levels and there is more employee control. Figure 7 illustrates the breakdown of management levels that occur in a flat or a tall structure. Some advantages of a flat structure include greater job satisfaction, more delegation, and increased communication between levels of management. Some advantages of a tall structure are greater control and better performance.

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Figure 7. Flat vs. Tall Structures

Task 3E. Working with charts task: Organizations can have flat or tall structures.

Do you think that the downsizing trends of the 1990s have had any effect on a company’s decision to maintain a flat or tall structure?

Task 4. Fact and Idea Review: answer the following questions on the Text C:

1)What is the purpose of an organizational chart?

2)What is a line function?

3)What is a staff function?

4)What is a matrix structure?

5)How does the team structure differ from the line and staff structure?

6)True or False: A tall structure allows for greater employee power through delegation.

Task 5. Fill in the gaps with prepositions:

1)All managers’ line functions contribute directly ____ company profits.

2)The team structure is very different ____ the traditional organizational structure.

3)Flat structure employees have more power ____ the company.

4)This kind of structure allows companies to respond quickly ____ a customer need.

5)A Matrix Structure allows employees to work together ____ special project.

6)Senior managers need not approve decisions ____ lower-level managers.

7)In a line organization, authority originates ____ the top and moves ____ in a line.

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Task 6. Put the appropriate information into the table (on the Text C):

Structure

Description

Advantages

Disadvantages

 

 

 

 

Line

 

 

 

 

 

 

 

Line and

 

 

 

Staff

 

 

 

 

 

 

 

 

 

Fluid and flexible

Complexity of

 

 

design that can

assigning people to

Matrix

 

respond to

projects. Task and

 

environmental

personality

 

 

 

 

changes. Faster

conflicts.

 

 

decision making.

 

 

 

Employees are more

No clear chain of

 

 

involved and

command. Pressure

Team

 

empowered.

on teams to

 

Reduced barriers

perform.

 

 

 

 

among functional

 

 

 

areas.

 

Task 7. Critical Thinking Tasks:

1)Analysing Information: Why do businesses need organizational structures?

2)Drawing Conclusions: Why do some companies prefer to organize by teams?

3)Predicting Consequences: In a business with a line and staff structure, why might conflict arise between line managers and staff managers?

4)Reasoning your preferences: Write a one-page paper that describes whether you would recommend adopting a line, line and staff, matrix, or team structure.

Text D: Factors Affecting Organizational Structure

Task 1. Learn new words from the Vocabulary:

to affect – влиять

depend on – зависеть от

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to be appropriate for – быть подходящим, подходить для … (к …)

dozen – дюжина

retail business – розничный бизнес

collaboration – сотрудничество

entrepreneur – предприниматель

to tend – иметь тенденцию

lack (v.) – не иметь; испытывать недостаток

to appeal to consumers – привлекать потребителей

solely – единственно(ый)

to rely on – полагаться на …

procedure – процедура, технологический процесс

to reward – (воз)награждать

to set up – устанавливать, учреждать

to determine – определять, устанавливать решать

rigid – жесткий

to feel left out – чувствовать себя обделенным

to deal with problem – справиться с проблемой

Task 2. Read the text and make notes on the main factors that determine a company structure. Explain your statements.

Factors Affecting Organizational Structure

The organizational structure a company chooses depends on the nature of its business. A structure that is appropriate for a high-tech company that employs 50,000 people in eight countries will not be appropriate for a small retail business with just a dozen employees.

Many factors affect the choice of organizational structure. The most important factors are the size of the business and the kinds of products or services it produces.

The size of a business has a very important effect on the organizational structure that a management adopts. Very small, single-person businesses need no organizational structure at all. Companies with only a few employees can also function well without a formal structure.

Once a business employs more than just a few employees, however, a formal structure is necessary. Moreover, for a business to be successful, its structure must change as the business continues to grow.

Typically, businesses go through three organizational life cycle stages. These stages include growth through creativity; growth through direction; and growth through delegation, coordination, and collaboration.

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