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Company Structure

This document discusses different types of company structures and key vocabulary. It describes a hierarchical or pyramidal structure with increasing levels of people below the top level. For large manufacturing companies, a functional structure with different departments is often needed in addition to hierarchy. Functional structures can lead to conflicts if departments only focus on their own success. Flattening hierarchies and delegating responsibility can address this by reducing layers of management and giving more autonomy. Matrix management involves people reporting to multiple superiors, but can become complex. Teams are formed for individual projects and are autonomous until the project is complete.

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528 views

Company Structure

This document discusses different types of company structures and key vocabulary. It describes a hierarchical or pyramidal structure with increasing levels of people below the top level. For large manufacturing companies, a functional structure with different departments is often needed in addition to hierarchy. Functional structures can lead to conflicts if departments only focus on their own success. Flattening hierarchies and delegating responsibility can address this by reducing layers of management and giving more autonomy. Matrix management involves people reporting to multiple superiors, but can become complex. Teams are formed for individual projects and are autonomous until the project is complete.

Uploaded by

kishobran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Company structure

Unit 3 (MacKenzie)
pg. 22-23

Vocabulary

delegate
superior
subordinate
report to somebody
in charge
line of command
responsibility

Vocabulary
exercise
1 a system of authority with different levels, one
2
3

4
5
6

above the other, e.g. a series of management


positions, whose holders can make decisions, or
give orders and instructions
a specific activity in a company, e.g. production,
marketing, finance
independant, able to take decisions without
consulting someone at the sme level or higher in
the chain of command
the power to give instructions to people at the level
below in the chain of command
to be responsible to someone and to take
instructions from them
to give someone else responsibility for doing
something instead of you

Vocabulary exercise
1
2
3
4
5
6

hierarchy or chain of command


function
autonomous
line authority
to report to
to delegate

The chain of command


What does hierarchical or pyramidal
structure mean?

It means that there is a person or a group


of people at the top and there is an
increasing nuber of people below them
at each following level.

Functional structure
Is one hierarchy enough for large
manufacturing companies?
What is functional structure?
Is functional organization completely good?

Most organizations are very complicated, so they need


more that one hierarchy; most large manufacturing
companies have a functional structure.

Functional structure divides the work to several


departments which have their own
responsibilities, but they are also responsible to
each other.
The biggest disadvantage of functional organization
is the fact that people often care only about their
departments succes, which leads to conflicts
between departments.

Flattening hierarchies and


delegating responsibility
Does everybody make important
decisions?
Is there a solution to this problem?
In very hierarchical organizations people
at lower leveles cant make important
decisions - they have to pass the
responsibility to their boss.
The solution to this problem is reduction of
the chain of command, taking out layers
of management and making the
organization much flatter.

Matrix management
What is matrix management?
Is there a downside to matrix
management?
In matrix management people report to
more than one superior.
Matrices that involve several
departments can be very complex, so
its necessary to give one department
priority.

Teams

What is the main characteristic of


creating teams for a certain project?

Teams are completely autonomous; they


are responsible for an entire project and
they dissolve as soon as its completed.

The chain of command

Hierarchical/pyramidal structure
Levels
Line structure
Chain of command
Decisions
Line manager
Line authority

Functional structure

Single hierarchy?
Departments
Divisions
Conflicts

Flattening hierarchies and


delegating responsibility

Important decisions
Reduction of the chain of command
Layers of management
Flatter organization
Elimination of jobs
Small firms vs larger businesses

Matrix management
Superiors
Complex? - priority

Teams
One per project
Strong leader

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