12494 Unit 3 ion

UNIT 3: ORGANISATION

CLASS MATERIAL_GLOSSARY_ASSIGNMENTS

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S.R.D./BE_2_summer semester 1

CORPORATE STRUCTURE

Corporate structure is essentially the layout of the various departments, divisions, and job

positions that interact to conduct the business of the company. Generally, a corporate

structure is necessary in order to ensure that all‐important tasks are conducted according to

the guidelines of the corporation, as well as providing lines of communication and authority

for the overall function of the company. Even the smallest of businesses have a corporate

structure, although the exact format for the structure may be extremely simplistic.

A corporate structure usually helps to accomplish three things:

1. Firstly, the corporate layout helps to define all the areas of responsibility within the

company. The accounting department is understood to handle all financial matters, such as

paying the bills of the company and also issuing invoices for services rendered. The sales

department works to ensure there are efforts to market the goods and services produced to

the consumer market. Provisions for executive, managerial, and administrative matters are

also normally accounted for in a corporate structure, so that everyone in the organisation

knows where a given issue should be addressed.

2. Secondly, along with providing reference points for the handling of various functions, a

corporate structure also helps to establish a line of communication for employees to utilize.

This makes it possible for comments, questions, and ideas to flow easily from anywhere in

the organisation to someone with authority to act on the information effectively. By

establishing this line of communication, the corporate structure helps to ensure effective

interaction and also minimize time wasted by information moving through the company in

a disorganized manner.

3. Lastly, the corporate structure helps to establish a working chain or line of authority.

Corporations often require responsible persons placed at various points in the structure to

ensure tasks are handle properly and in accordance with company bylaws. By granting

specific levels of authority to persons all along the corporate structure, including making

persons accountable to other persons for their competency in exercising authority, it

provides a checks and balance system to keep the company on an even keel. Employees who

are not happy with immediate supervisors have someone who can hear their grievances,

while overseers may step in and conduct the tasks assigned to an employee when needed.



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WAYS OF ORGANISING A COMPANY

An organisation is a social arrangement which pursues collective goals, controls its own

performance, and has a boundary separating it from its environment. The word itself is

derived from the Greek word organon.

An organisational structure is a mainly hierarchical concept of subordination of entities that

collaborate and contribute to serve one common aim.

Organisational structure allows the expressed allocation of responsibilities for different

functions and processes to different entities such as the branch, department, workgroup and

individual. Individuals in an organisational structure are normally hired under time‐limited

work contracts or under permanent employment contracts or program orders.

Organisational structure concerns two things:

who reports to whom

how different elements are grouped together

Why is structure important?

1. A new company cannot go forward without this.

2. An established company must ensure its structure reflects its target markets, goals and

available technology.

An organisation can be structured in many different ways and styles, depending on their

objectives and size. The structure of an organisation will determine the modes in which it

operates and performs.

Common success criteria for organisational structures are:

Decentralized reporting

Flat hierarchy

High transparency

Permanent monitoring

Rapid response

Shared reliability

Matrix hierarchy



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ORGANISATIONAL STRUCTURE TYPES

1. Functional structure

Employees within the functional divisions of an organisation tend to perform a specialized

set of tasks, for instance the engineering department would be staffed only with software

engineers. This leads to operational efficiencies within that group. However it could also

lead to a lack of communication between the functional groups within an organisation,

making the organisation slow and inflexible.

As a whole, a functional organisation is best suited as a producer of standardized goods and

services at large volume and low cost. Coordination and specialization of tasks are

centralized in a functional structure, which makes producing a limited amount of products

or services efficient and predictable. Moreover, efficiencies can further be realized as

functional organisations integrate their activities vertically so that products are sold and

distributed quickly and at low cost. For instance, a small business could start making the

components it requires for production of its products instead of procuring it from an

external organisation.

In this type of organisation, there is a traditional chain of command (consisting of senior

management‐middle management‐junior management).

Main benefits: clear lines of communication from top to bottom

Main drawbacks: it can be a bureaucratic set up which doesn’t allow fast decision‐making

2. Organisation along product lines

Also called a ʺproduct structureʺ, the divisional structure groups each organisational

function into divisions. Each division within a divisional structure contains all the necessary

resources and functions within it. Divisions can be categorized from different points of view.

A distinction can be made on geographical basis (e.g. an US division and an EU division) or

on product/service basis (different products for different customers: households or

companies). Another example, an automobile company with a divisional structure might

have one division for SUVs, another division for subcompact cars, and another division for

sedans. Each division would have its own sales, engineering and marketing departments.

The focus is always on the product and how it can be improved.

3. Geographic structure

This type of organisation is important for multinational companies. For instance,

when a company launches a product that meets the western quality standards but can’t be

placed onto, for instance, Asian market, unless there are country managers placed there to



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inform the company of the changes that need to be made to satisfy a more demanding Asian

market.

4. Matrix structure

This type of organisation was first developed by NASA when they needed to pool together

different skills from different functional areas ‐ this structure organises a business into

project teams, led by project leaders, to carry out certain objectives.

Training is essential here in order to avoid conflict between various members of the teams.

The matrix structure groups employees by both function and product. This structure can

combine the best of both separate structures. A matrix organisation frequently uses teams of

employees to accomplish work, in order to take advantage of the strengths, as well as make

up for the weaknesses, of functional and decentralized forms. An example would be a

company that produces two products, ʺproduct aʺ and ʺproduct bʺ. Using the matrix

structure, this company would organise functions within the company as follows: ʺproduct

aʺ sales department, ʺproduct aʺ customer service department, ʺproduct aʺ accounting,

ʺproduct bʺ sales department, ʺproduct bʺ customer service department, ʺproduct bʺ

accounting department.

There are three mixed types of matrix structure:

Weak/Functional Matrix: A project manager with only limited authority is assigned

to oversee the cross‐ functional aspects of the project. The functional managers

maintain control over their resources and project areas.

Balanced/Functional Matrix: A project manager is assigned to oversee the project.

Power is shared equally between the project manager and the functional managers. It

brings the best aspects of functional organisations. However, this is the most difficult

system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix: A project manager is primarily responsible for the project.

Functional managers provide technical expertise and assign resources as needed.

Among these matrixes, there is no best format; implementation success always

depends on organisationʹs purpose and function.



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ORGANISATIONAL CIRCLE – CURRENT TENDENCIES

The flat structure is common in entrepreneurial start‐ups, university spin offs or small

companies in general. As the company grows, however, it becomes more complex and

hierarchical, which leads to an expanded structure, with more levels and departments.

Often, it would result in bureaucracy, the most prevalent structure in the past. It is still,

however, relevant in former Soviet Republics and China, as well as in most governmental

organisations all over the world. Shell Group used to represent the typical bureaucracy:

top‐heavy and hierarchical. It featured multiple levels of command and duplicate service

companies existing in different regions. All this made Shell apprehensive to market changes

leading to its incapacity to grow and develop further. The failure of this structure became

the main reason for the company restructuring into a matrix.

Starbucks is one of the numerous large organisations that successfully developed the matrix

structure supporting their focused strategy. Its design combines functional and product

based divisions, with employees reporting to two heads. Creating a team spirit, the

company empowers employees to make their own decisions and train them to develop both

hard and soft skills. That makes Starbucks one of the best at customer service.

Some experts also mention the multinational design, common in global companies, such as

Procter & Gamble, Toyota and Unilever. This structure can be seen as a complex form of

the matrix, as it maintains coordination among products, functions and geographic areas.

In general, over the last decade, it has become increasingly clear that through the forces of

globalization, competition and more demanding customers, the structure of many

companies has become flatter, less hierarchical, more fluid and even virtual.

Example of new restructuring in a large company ‐ Microsoft

The leading software company had a very flat organisational structure (used to have just a

few levels between the average software tester and Bill Gates).

They restructured the company along product lines: In Ireland, where 1,000 employees work

on localisation of the software for all Microsoft’s markets, the company is split up into seven

business units.

Each unit controls the localisation of their specific products while working closely with the

designers in Microsoft’s Seattle Headquarters.

This works because everyone is empowered to react a lot more quickly to any challenges

and work towards the company’s objectives.



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MODERN COMPANY STRUCTURES

Team

One of the newest organisational structures developed in the 20th century is team. In small

businesses, the team structure can define the entire organisation [9]. Teams can be both

horizontal and vertical. While an organisation is constituted as a set of people who synergize

individual competencies to achieve newer dimensions, the quality of organisational

structure revolves around the competencies of teams in totality. For example, every one of

the Whole Foods Market stores, the largest natural‐foods grocer in the US developing a

focused strategy, is an autonomous profit centre composed of an average of 10 self‐managed

teams, while team leaders in each store and each region are also a team. Larger bureaucratic

organisations can benefit from the flexibility of teams as well. Xerox, Motorola, and

DaimlerChrysler are all among the companies that actively use teams to perform tasks.

Network

Another modern structure is network. While business giants risk becoming too clumsy to act

quickly the new network organisations contract out any business function, that can be done

better or more cheaply. In essence, managers in network structures spend most of their time

coordinating and controlling external relations, usually by electronic means. H&M is

outsourcing its clothing to a network of 700 suppliers, more than two‐thirds of which are

based in low‐cost Asian countries. Not owning any factories, H&M can be more flexible than

many other retailers in lowering its costs, which aligns with its low‐cost strategy.

Virtual

A special form of organisation without strict boundaries is virtual. It works in a network of

external alliances, using the Internet. This means while the core of the organisation can be

small but still the company can operate globally be a market leader in its niche. Because of

the unlimited shelf space of the Web, the cost of reaching niche goods is falling dramatically.

Although none sell in huge numbers, there are so many niche products that collectively they

make a significant profit, and that is what made highly innovative Amazon.com so

successful.

As we can see, organisations develop, modify and change their structures so that they align

with their strategies. And the main trend for the last decades seems to be coming back to

flatter structures. Although this structure seems suitable for small companies only, large

organisations can take elements of it in harder times. Being at risk of losing profits or even

going bankrupt due to the major financial downturn today, a lot of companies are moving to



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flatter structures. Not only are they unable to maintain multiple management levels any

more, they are also in need of a more flexible structure to cope with new threats.

What are the different requirements of employees in different work settings?

Self‐employed persons ‐ has to possess strong self‐discipline in order to motivate

themselves because they have no one above to tell them what to do.

Large organisation ‐ being a self‐starter is one of the basic requirements for recruits

that come to work there.

Small privately‐owned companies (e.g. advertising agencies) always look for new

ways to motivate their employees to be more productive and creative. Such

organisations do not give their employees exact procedures on how to meet

objectives – employees are relatively autonomous.

Banks and financial institutions ‐ need employees who follow exact rules and

procedures without being too creative. Those are organisations with centralised

cultures where rules are imposed from above and have to be followed without

questioning.

What is flexibility in business?

a) Flexibility in relation to flexitime (flextime) where people can choose when they work but

within certain limits.

b) Flexibility related to flexible working:

staff hot desking (changing their work stations depending on the availability of

desks in the office)

teleworking or telecommuting ‐ employees come to the office occasionally, majority

of work id done from home. The number of teleworkers is rising fast thanks to

increasing availability of fast broadband Internet connections.

c) Third type of flexibility – employees are recruited on short contracts to work on specific

projects (part‐time). Such organisations have a number of core staff, and outsources or

contracts out work when they need more people for specific tasks.

Advantages of being a company employee – showing company status (Course book, p 22)

These things can reflect a person’s status within organisation:

A large office, having a secretary, having a company expense card, having one’s name on

the door, having a reserved parking space, flying business class, using a company car.



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Good and bad qualities of an organisation (Course book p.23),

Good qualities: decentralised, caring, democratic, market‐driven, dynamic, professional,

progressive.

Bad qualities: bureaucratic, impersonal, centralised, conservative, hierarchical

Adjectives for describing companies

Decentralise verb

Decentralised

adjective

To move the control of an organisation or government from a single

place to several smaller ones.

We decentralized our operations last year and opened several regional offices.

Caring

This adjective describes companies that are making a difference in the

workplace.

These 10 characteristics define the standard for all organisations desiring to

be recognized as caring, responsible organisations.

1. Sustain a work environment founded on dignity and respect for all

employees

2. Make employees feel their jobs are important

3. Cultivate the full potential of all employees

4. Encourage individual pursuit of work/life balance

5. Enable the well‐being of individuals and their families through

compensation, benefits, policies and practices

6. Develop great leaders, at all levels, who excel at managing people as

well as results

7. Appreciate and recognize the contributions of people who work there

8. Establish and communicate standards for ethical behaviour and

integrity

9. Get involved in community improvements and/or public policy

10. Consider the human factor when making business decisions opposite: uncaring

Market‐driven Firm’s policy and strategy guided by market trends and customers needs

instead of firm’s productive capacity or current products.

Hierarchical Having a structure consisting of multiple levels. A hierarchical business

structure would mean that the chain of command looks like a pyramid, with a

large base of workers, who are directly supervised by the smaller level above

them, who are in turn supervised by the level above them, continuing on to

the top ranking officer such as the company President or CEO. Alternatively,

anything which can be broken down into a series of levels which range from

broad to specific can be considered hierarchical.

Progressive Describes ideas or systems which are new and modern, encouraging change

in society or in the way that things are done

progressive ideas/attitudes

The left of the party is pressing for a more progressive social policy.

a progressive school



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Bureaucratic This type of company values procedures and historical methods regardless of

their usefulness in changing environments. Leaders in bureaucratic

companies attempt to solve problems by adding layers of control and their

power comes from controlling flow of information.

Impersonal 1. Not relating to or responsive to individual persons

An impersonal corporation

2. Anonymous: not considering people as individuals

an impersonal bureaucracy

Centralise To remove authority in a system, company, country, etc. from local places to

one central place so that the whole system, etc. is under central control

Payment of bills is now centralized (= organized at one place instead of several).

Conservative Cautious; having a risk‐averse investment strategy which has preservation of

capital as a high priority.

Dynamic Having a lot of ideas and enthusiasm; energetic and forceful

Sheʹs young and dynamic and will be a great addition to the team.

We need a dynamic expansion of trade with other countries.

Professional Having the qualities that you connect with trained and skilled people, such as

effectiveness, skill, organisation and seriousness of manner

It would look more professional if the letter was typed.

She always looks very professional in her smart suits.

opposite: amateurish

Democratic Based on the principles of democracy

We must accept the results of a democratic election (= an election in which all people

can vote).

opposite: undemocratic

Efficient Working or operating quickly and effectively in an organized way

The cityʹs transport system is one of the most efficient in Europe.

opposite: inefficient

Faceless Having no clear characteristics and therefore not interesting

faceless bureaucrats

Forward‐looking Willing to consider up‐to‐date (latest) ideas and methods

Ours is a very forward‐looking company and we need such people tp work for us.

Progressive In favour of new ideas and modern methods of working

Lean Working with a minimum number of staff and minimum levels of hierarchy =

positive quality

Responsive Reacting quickly and in a positive way

Our company has always been responsive to the needs of the employees.

opposite: unresponsive



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READING: A SUCCESSFUL ORGANISATION (Course book p. 24)

Exercise 1:

Find expressions in the text ‘Dirty Business, Bright Ideas’ that match the following

meanings:

1. the main offices of an organisation such as the army, police or a business company:

2. to repair and improve something, especially a building:

3. in the centre of:

4. to walk around slowly in a relaxed way or without any clear purpose or direction:

5. a very large and important business or organisation (especially one that produces sth.):

6. sth. that legally belongs to somebody:

7. wanting very much to win or be more successful than other people (the idea of achieving

that):

8. the feeling of pleasure and achievement which you experience in your job when you

know that your work is worth doing, or the degree to which your work gives you this

feeling

9. a piece of clothing which covers both the upper body and the legs (usually worn during

work)

10. to provide more proof or support for an idea and make it seem true:

11. full of hope, happiness and good feelings:

12. a type of jacket, often with the symbol of a school or organisation sewn on the front

pocket and worn as part of a uniform:

13. to end an activity or custom officially:

14. activities relating to a large company:

15. a word which is used before someoneʹs name, stating their social rank, qualifications,

position in an organisation, sex, etc:

16. an advantage or extra thing, such as money or goods, which you are given because of

your job:

17. one of the units which together make a complete course taught especially at a college or

university:

18. severe or strict:

19. to move the control of an organisation or government from a single place to several

smaller ones:

20. to employ someone or pay them to do a particular job:



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21. the state of being completely responsible for what you do and being able to give a

satisfactory reason for it:

22. how well a person, machine, etc. does a piece of work or an activity:

23. often:

24. to get a new client, especially in a way which seems easy or unexpected:

25. a level of quality in business activities which can be used as a standard when comparing

other things:

26. to judge the value or character of someone or something:

27. written statement about somebody’s work achievements:

KEY: 1‐headquarters; 2‐renovate; 3‐in the heart of; 4‐wander; 5‐ industrial empire; 6‐owned by; 7‐

competitive formula; 8‐satisfaction in your work; 9‐jumpsuit; 10‐reinforce; 11‐upbeat; 12‐blazer; 13‐

abolish; 14‐corporate life; 15‐title; 16‐ perk; 17‐module; 18‐rigorous; 19‐decentralise; 20‐hire; 21‐

accountability; 22‐(measure) performance; 23‐frequently; 24‐ land (a contract); 25‐benchmark; 26‐

rate; 27‐performance report.

Exercise 2:

Read this extract from the SOL’s company website and inserts the missing words by

choosing from the box below.

customer satisfaction / eco‐friendly way / satisfied employees / committed to / subsidiaries /

reasonable costs / decision‐making processes / meet the customerʹs needs / environmental

footprint / facility services / comprise / personnel services / service corporation /

Sunny SOL at your service

SOL is a Finnish ___________________________that provides a wide range of services from

cleaning and ________________________________to property and security services, and

including laundry and domestic services. Today we also offer

_______________________________. Our customers _______________________both

companies and private households. We offer tailored service packages

to_______________________________________, either by producing services in‐house or by

providing them through our network of reliable partners.

SOL operates in an_____________________________, with the aim of conserving natural

resources and minimising our__________________________________. We are aware of the

environmental impact of our services and of our responsibility as the user of products, all of

which are addressed throughout our________________________________________. SOL is

______________________________improving its operations and reducing environmental

impacts. We purchase the most eco‐friendly technology available



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at____________________________. We aim to reduce the amount of waste generated and to

promote the right type of waste separation.

SOL is a national operator in Finland. Our international ____________________________

serve customers in Estonia, Russia and Latvia. SOL’s key success factors are high quality

and ________________________________, a strong focus on personnel training, and

_______________________________.

All 9,000 SOL employees are at your service!

KEY: service corporation / facility services / personnel services / comprise / meet the customerʹs

needs / eco‐friendly way / environmental footprint / decision‐making processes / committed to /

reasonable costs / subsidiaries / customer satisfaction / satisfied employees.

LISTENING: ADVISING COMPANIES (Course book p.26)

You listened to the interview with Richard Brown, a consultant at Cognosis, a management

consultancy in London. In the first part of the interview he talks about different character of

companies and about their approaches to analysing a business:

Listening 3.2

1. The four approaches they use to analyse a business:

a) They study the tone and style of company’s communications (external

communication such as advertising, communication with call centres etc.)

b) They interview the company’s top executives in depth.

c) They conduct broad research across the company’s staff and its customers.

d) Finally, they analyse the company’s internal documents.

2. They found out that there are 16 different ‘ character types’ in business.

3. According to their research, different types of organisations handle these things

differently: aspects of change, innovation and relations to customers.

Listening 3.3

The following statements are true about what Richard Brown said:

1. In order to change a business’s character it is often easier to merge it with another

company or to acquire a competitor.

2. When two big companies like Guinness and Grand Metropolitan merged, the top

management teams achieved a substantial change in culture by being very clear at the outset

that it was creating anew and different culture from the two companies that merged.



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3. The senior managers of the two companies spent a lot of money training staff in new

business methods.

4. The newly created company culture has been hugely successful.

Listening 3.4

There are three ways in which successful companies are similar:

1) They are future‐oriented (they have a clear sense of where they are heading).

2) They are customer‐driven (they invest a lot of time and energy in understanding and

responding to the market demands).

3) They are values‐driven (people in the company are clear about the values that should

guide their decisions).

COMPANY DEPARTMENTS

Department is a division of a business specializing in a particular product or service.

Departments that can be found in most large companies are:

Human Resources (HR) ‐ personnel department, department which manages the

administrative aspects of the employees.

Catering Services – a department which provides foods and services for employees and

guests.

Waste Management –a department involved in the management of the collection, recovery

and disposal of wastes, including options for waste reduction.

Occupational Health and Safety – a department which creates a safe environment for

employees, contractors, customers and visitors to company facilities; as well as encouraging

a healthy lifestyle and promoting public health amongst the people that the company affects.

Plant Security – a department responsible for the security of the institutions property and

workers.

Mailroom or Mail Services ‐ a room in which ingoing and outgoing mail is handled for a

company or other organisation.

Works Council ‐ a department representing employer and employees of a plant or business

to discuss working conditions etc; also a committee representing the workers elected to

negotiate with management about grievances and wages etc.

Production Department ‐ a department which is responsible for the actual construction and

preparation of products to be sold to other businesses or individuals.

Dispatch Department ‐ a department of a company which is responsible for the delivery of

orders that are placed with a company.



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Purchasing Department ‐ a department which is responsible for sourcing and then

arranging the details for the actual purchase of any items that are required.

Car Pool ‐ fleet of cars.

Accounts Department ‐ a department which monitors the clients’ accounts and the accounts

that the company has with businesses supplying either goods or services.

Payroll ‐ a division responsible for the financial record of employeesʹ salaries, wages,

bonuses, net pay, and deductions.

Customer Service – a department whose primary activity is associated with after‐sale

support to enhance or to maintain the value of the product or service.

Legal Department ‐ a department which provides legal advice to other departments in the

company.

Marketing Department – a department which is involved in promoting, selling and

distributing products or services of its company.

Supply Chain Management or SCM ‐ the oversight of materials, information and finances

as they move in a process from supplier to manufacturer, to wholesaler, to retailer, to

consumer.

Facility Management ‐ the management of buildings and services. These services are

sometimes considered to be divided into hard services and ʹsoft servicesʹ; hard services

includes such things as ensuring that a buildingʹs air conditioning is operating efficiently,

reliably, safely and legally; soft services includes such things as ensuring that the building is

cleaned properly and regularly or monitoring the performance of contractors (for example

builders and electricians).

Research and Development or R&D ‐ a department discovering new knowledge about

products, processes and services; then applying that knowledge to create new and improved

products, processes and services that fill market needs.

Medical Services ‐ services covered by a managed‐care plan provided by a physician or

other authorized medical professionals.

Management ‐ persons running an organisation.

Quality Management ‐ a system of organisational structures, procedures, responsibilities

and evaluation mechanisms which ensures that the organisation is capable of delivering its

product to specified standards.



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Exercise 1:

Now let’s put new vocabulary into context, so you can see how you might use these terms

yourself. The expressions missing from the sentences are in boldface in the above text.

1. The products or services that are bought by the ………………………………………can

be anything from the stationery that the office needs to large pieces of machinery to

be used in the factory.

2. Not all companies need a……………………………………………, however in some

companies the production department is the major part of the company.

3. Companies are nowadays spending more money on ………………………………and

less on Research and Development to ensure the profitability and high level of

customer satisfaction for a company.

4. The role of the ……………………………………………within a company is to develop

advertising campaigns.

5. The ………………………………………will usually provide the dispatch department

with the necessary orders that need to be sent on a particular day.

6. The …………………………………….monitors the payment for each company

account as well as the status of each account.

7. In modern times the former ‘Personnel Department’ is known as

the……………………………………………………………, abbreviated simply to H.R.

KEY: 1‐Purchasing Division; 2‐ Production Department; 3‐ Customer Service;

4‐ Advertising Department; 5‐ Sales Department; 6‐ Accounts Department;

7‐‘Human Resources’ Department.

Exercise 2:

Name the department in a company which is responsible for the following business

activities:

1. A system of organisational structures, procedures, responsibilities and evaluation

mechanisms which ensures that the organisation is capable of delivering its product

to specified standards: __________________________________________

2. A department which provides foods and services: ______________________________

3. A department involved in the management of the collection, recovery and disposal

of wastes, including options for waste

reduction:_________________________________

4. A department which creates a safe environment for employees, contractors,

customers and visitors to company facilities; as well as encouraging a healthy



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lifestyle and promoting public health amongst the people that the company

affects:____________________________________________

5. A room in which ingoing and outgoing mail is handled for a company or other

organisation:________________________________________

6. A department representing employer and employees of a plant or business to discuss

working conditions etc; also a committee representing the workers elected to

negotiate with management about grievances and wages

etc.:___________________________________________

7. A department which is responsible for the actual construction and preparation of

products to be sold to other businesses or individuals:___________________________

8. A department of a company which is responsible for the delivery of orders that are

placed with a company:_________________________________________

9. A department which is responsible for sourcing and then arranging the details for

the actual purchase of any items that are

required:__________________________________

10. A department discovering new knowledge about products, processes and services;

then applying that knowledge to create new and improved products, processes and

services that fill market needs:_______________________________________

11. A department which provides legal advice to other departments in the

company:______________________________________

12. A department which is involved in promoting, selling and distributing products or

services of its company:_____________________________

KEY: 1‐Quality Management; 2‐Catering Services; 3‐Waste Management; 4‐Occupational Health

and Safety; 5‐Mailroom or Mail Services; 6‐Works Council; 7‐Production Department; 8‐Dispatch

Department; 9‐Purchasing Department; 10‐Research and Development (R&D); 11‐Legal

Department; 12‐Marketing Department.

GLOSSARY FOR UNIT 3

o delayering Reduction of levels: the process of simplifying the structure of an organisation to make it

more efficient; when a company or organisation reduces the number of its managers.



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o downsize (verb) (Of a company) to reduce the number of employees, usually as part of a larger change in

the structure of an organisation

The company was forced to downsize in order to remain competitive.

o sole trader/sole proprietor A type of business enterprise or proprietorship which is owned by one person who is

fully liable for the companyʹs debts and fulfillment of contracts with his/her personal

wealth unless incorporated.

o SME Small and medium‐sized enterprise.

o hierarchy (noun) A system in which people or things are arranged according to their importance.

He rose quickly through the political hierarchy to become party leader.

hierarchical (adjective)

Itʹs a very hierarchical organisation in which everyoneʹs status is clearly defined.

hierarchically (adverb)

The company is hierarchically structured.

o autonomy (noun) The right of a group of people to govern itself, or to organize its own activities.

Demonstrators demanded immediate autonomy for their region.

The universities are anxious to preserve their autonomy from central government.

o autonomous (adjective) Independent and having the power to make your own decisions.

an autonomous region/province/republic/council

o centralized (adjective) Drawn toward a centre or brought under the control of a central authority.

o impose (verb) To officially force a rule, tax, punishment, etc. to be obeyed or received.

Very high taxes have recently been imposed on cigarettes.

Judges are imposing increasingly heavy fines for minor driving offences.

2. to force someone to accept something, especially a belief or way of living:

We must impose some kind of order on the way this office is run.

o flexitime (UK) (noun) (US flextime) A system of working in which people work a set number of hours within a fixed period

of time, but can vary the time they start or finish work.



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o teleworking (noun) (also: telecommuting)

Working at home, while communicating with your office by telephone, fax or computer

telework (verb) (also: telecommute)

teleworker (noun) (also: telecommuter)

o core The basic and most important part of something.

The basic lack of government funding is at the core of the problem.

2. core value/belief/issue, etc.: a value, belief, etc. which is basic and more important than

any other:

The final status negotiations would focus on the core issues of the peace process.

3. core business/operations/activities: the most important or largest part of a companyʹs

business activities, which it depends on in order to continue trading:

The companyʹs core operations include entertainment and aviation.

o contract out To offer work to other companies or workers outside the organisation that is

commissioning the work.

(U.K. )= withdraw formally: to withdraw from something by making a formal or legally

binding declaration.

Some employees are contracting out of the state pension scheme

Vocabulary A, p.23

o subsidiary (plural: subsidiaries) A company that is at least half‐owned by another company.

o branch/outlet An individual bank, shop or office that is part of a large organisation.

To talk to one of our specialist financial advisers, just contact your local branch.

(BrE) a small local organisation that is part of a trade union

He is a former chairman of the Belfast branch of the National Union of Journalists.

o call centre (BrE); (AmE customer service center) An office where people answer customer’s questions, make sales over the telephone etc.

IBM has announced a big call centre investment in Ireland to provide worldwide PC support.

o warehouse A large building used for storing goods in large quantities.

The unit will add 14 warehouses to its current distribution centres.



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o bonded warehouse (or: customs warehouse) A warehouse in which imported goods are stored until taxes on them have been paid.

The measures include creating a bonded warehouse to make the port a point of entry for imported

goods.

o distribution warehouse A warehouse in which goods that are ready to be sent to shops or direct to customers are

stored.

Vocabulary B (Listening), p.23

o stock All the goods available to buy in a shop.

We are currently selling off our surplus stock before the new season collection arrive.

in stock

I am sorry but we do not have any more of those shoes in stock.

out of stock

By completing the sales of the surplus stock, we are out of stock as far as that model is concerned.

o sales figures (always plural) The amount or value of goods or services that a company sells during a particular period.

Our company has had poor sales figures for the first quarter.

COLLOCATIONS:

strong/solid/good sales figures

poor/weak/disappointing sales figures

annual/quarterly/monthly/this year’s sales figures

o consignment (written abbreviation consgt)

A quantity of goods delivered at the same time.

Sixty eggs are removed from each consignment and tested for salmonella.

o Annual General Meeting (AGM) An official yearly meeting of the shareholders and directors of a company, at which the

company’s accounts are presented, the auditors are chosen, and the amount of dividend

is decided, as required by law.

A resolution to appoint Coopers & Lybrand as the company auditors will be proposed at the

annual general meeting.



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o parent company A company that owns other companies.

Costs are two thirds lower at Japan Air Charter, a subsidiary that employs foreigners, than at the

parent company.

Reading: A successful organisation, p. 24

o accountable (adjective) If you are accountable for your actions you are expected to answer for them and explain

them to people at higher levels in the hierarchy

Companies have to be more accountable for their actions to their shareholders.

accountability (noun)

the state of being accountable to someone

o blazer A type of jacket worn usually as a part of a uniform (school uniforms, work uniforms etc.)

o benchmark A standard of quality or performance everything is compared to.

A performance benchmark has been established for the entire company

o cutting edge The latest, most advanced stage in the development of something (in technology, science

etc.).

They have introduced cutting‐edge methods of dealing with inefficient employees.

o jumpsuit A piece of clothing, usually used for physical work, that covers and protects entire body.

o land (a contract) To succeed in getting a (profitable) job with another company or individual.

He landed a great job at Siemens last year.

His department landed a multi‐million dollar contract with a foreign partner to construct a new

section of the motorway.

o module One of the separate units/parts of a course of study



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o perk A bonus (financial or other) that you receive along with your salary.

Among many perks offered by our company there is a fitness, sauna and swimming facilities on

the top floor of our building.

Not having to go to work every day is just one of the perks of being on vacation.

o reinforce to make something stronger (an idea, a concept, a feeling, a belief)

This year’s figures certainly reinforce our feeling that a company has been doing badly, especially

in the last quarter.

o upbeat (opposite: downbeat) Positive, enthusiastic, something/somebody that makes you feel good about your future.

The presentation ended in an upbeat manner.

Listening: Advising companies p.26 (3.2,3.3,3.4)

o substantial Large in amount or value.

The company have gave him substantial bonus for the outstanding performance in the last year.

o outset The beginning or start of something.

(from the outset/at the outset)

The things started to go wrong from the very outset.

o consistency Ability to retain the same behaviour, views or attitudes throughout a long period.

There is lack of consistency in the way our politicians communicate certain views.

o back something up Provide support for something.

His actions are backed up by his previous thoughts about this problem.

o lay something out Present a plan or an argument in a clear and careful manner.

The rules and regulations at this institution are clearly laid out in our documents.



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#

LANGUAGE REVIEW: NOUN COMBINATIONS

There are three ways in which nouns can be put together:

a) noun + ‘s + noun

b) noun + of + noun

c) compound nouns

a) Noun + ‘s + noun

1. We use the ‘s structure to express the relationships between nouns:

Possession (Mr. Smith’s office)

Relationships (his brother’s success)

Duration and time (this year’s results)

2. This form can also be used to show that something belongs to or is associated with a

place or an organisation:

The board’s decision; the company’s profits; the bank’s clients

3. ‘s is added to a noun that specifies a part of an object or its quality:

The computer’s memory, the plane’s wing

b) Noun + of + noun

1. When we talk about a particular unit of something we use this form:

Countable noun + of + uncountable noun

a piece of equipment; an item of news; a bit of research; a bit of trouble

That way we can form certain fixed combinations like:

A word of advice; a mountain of work; a round of talks; a stroke of luck

2. The “of” structure is used to talk about containers and their contents. The noun+noun

structure refers to a container without its contents:

A barrel of oil an oil barrel

A packet of cigarettes a cigarette pack

A jar of coffee a coffee jar



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3. The “of” structure is also used with words that indicate a part of something:

The middle of the meeting; the bottom of the page

c) Compound nouns

A compound noun is a noun that is made up of two or more words. Most compound nouns

in English are formed by nouns modified by other nouns or adjectives.

For example:

The words tooth and paste are each nouns in their own right, but if you join them together

they form a new word ‐ toothpaste.

The word black is an adjective and board is a noun, but if you join them together they form a

new word ‐ blackboard.

In both these example the first word modifies or describes the second word, telling us what

kind of object or person it is, or what its purpose is. Therefore, the first word functions as

an adjective. And the second part identifies the object or person in question.

Compound nouns can also be formed using the following combinations of words:

Noun + Noun toothpaste

Adjective + Noun monthly ticket

Verb + Noun swimming pool

Preposition + Noun underground

Noun + Verb haircut

Noun + Preposition hanger on

Adjective + Verb dry‐cleaning

Preposition + Verb output

The two parts may be written in a number of ways:

1. Sometimes the two words are joined together.

Example: tooth + paste = toothpaste | bed + room = bedroom

2. Sometimes they are joined using a hyphen.

Example: check‐in

More examples: sales target; data collection; a savings account; a recycling plant



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Noun combinations – examples from the article on page 24

‘S POSSESSIVE ONE NOUN

USED AS AN

ADJECTIVE

PHRASES

WITH OF

COMPOUND NOUNS

FORMING ONE WORD

One of northern

Europe’s most

admired

companies

SOL city Headquarters of

one of the

northern

Europe’s most

admired

companies

Headquarters

SOL’s competitive

formula

Business

playground

The heart of

Helsinki

Playground

SOL’s logo Cleaning service The rules and

regulations of

conventional

corporate life

Jumpsuits

SOL’s training

programme

Status symbols Hours of work Salesperson

The new

customer’s site

Time

management

A limited

number of ways

Benchmarks

The team’s

performance

People skills Way of life Laptops

Power players The real power

players of the

company

Cell‐phones

Customer

satisfaction

A team of up to

50 cleaners

Performance

benchmarks

Budget

documents

Performance

reports

Training

schedules

Company news



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CASE STUDY – Auric Bank

A UK bank is experiencing declining customer satisfaction and increasing costs. Taking

the roles of bank executives, you have to decide on the best course of action to reverse this

trend, discussing a decision about possible relocation of the Bank’s call centres.

Background information:

COMPANY Auric Bank

BASED IN UK

BUSINESS AIMS To provide customers with excellent service

at competitive prices

REORGANISATION IN RESPONSE TO… Need to reduce costs, including the cost of

providing customer services (call centres)

OPTIONS

1. Make changes in‐house

2. Outsource to UK call centres

3. Outsource to low‐cost countries such

as India

PROFIT/LOSS? REASON?

Loss of £ 1.5 billion because of investment in

unprofitable areas of business.

IMAGE: POSITIVE/NEGATIVE?

REASONS?

Negative.

1. Charging too much

2. No longer seen as ´caring´



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PORTFOLIO ASSIGNMENTS

1) RESEARCH ASSIGNMENT

Search the Internet for examples of companies’ mission statements, annual reports or similar

documents that contain information on the company culture, business strategy, relationships

between management and staff, qualities they pride themselves with, ways they measure

and reward employees’ performance, different perks they offer to staff and any other

information that you think completes the picture of that company.

Write a one‐page report on the chosen company for your Portfolio.

Use the description from page 24 in your course books as a model for doing the assignment.

3) CASE STUDY ASSIGNMENT

As a member of the team of directors of Auric Bank, write a short report to the CEO giving a

short summary of the four options mentioned on page 29 in your course book. Give your

final recommendation on the best option among the four that you discussed in class.

Use the model for writing reports on page 136 in the course book.

Documents

12494 Unit 3 ion