Advantages of Ltd. over PLC.

• There are many advantages of Ltd. over PLC. Although both types of companies represent ownership by shareholders, shares of private limited companies are not offered to general public. That ensures a higher level of control for the owners. Furthermore, disclosure of accounts, which is obligatory for public limited companies, is not necessary in Ltd. Finally, there is no possibility of takeovers, which is a big disadvantage of PLC.

A pg. in favour of taxation and government spending

• Taxation is necessary. Firms require roads for their staff and suppliers, so the function of the government is to provide infrastructure. Furthermore, the government should also provide merit goods, such as education, because firms need educated and qualified staff. Moreover, the society creates conditions under which financial success is possible, so it can rightfully claim a share in success. To conclude, government spending can raise the standard of living for the whole population.

A pg. in favour of taxation and government spending

• The government imposes taxes in order to collect the money for various purposes. Although some people tend to complain about high tax rates, without tax revenue, the state would not be able to provide free public education or free health care, which are extremely important, especially for the underclass. Moreover, governments may choose to use the money to revamp the railroads, to upgrade roads or to simply improve the quality of other merit goods. To conclude, the money that comes from taxes plays a vital role in all mixed economies, but its adequate allocation is crucial.

Hw check

• Collocations• Phrases with prepositions

Collocations (v + noun phrase)

• set• achieve• allocate• employ• modify• balance• develop• manage• establish• maintain

Collocations (v + noun phrase)• set• achieve• allocate• employ• modify• balance• develop• manage• manage• establish• maintain

objectives, standardsobjectivesresourcesresourcesobjectivestoday’s objectives against ...human resources (top m.)impact on the environmentsocial responsibilitiesgood relationshipsgood relationships

Phrases with prepositions• (sub-)divide ________ tactics• attached _____ sth.• it will follow ________ this• balance sth. ___________ sth.• impact ____ sth.• to be _____ stand by• deal _____ sth.• advised / displaced / reviewed ____ the Board• companies _____ wide share ownership• ____ reality

Phrases with prepositions• (sub-)divide _into_ tactics• attached _to_ sth.• it will follow _from_ this• balance sth. _against_ sth.• impact _on_ sth.• to be _on_ stand by• deal _with_ sth.• advised / displaced / reviewed _by_ the Board• companies _with_ wide share ownership• _in_ reality

People involved in corporate structure

• Shareholders

• Managers p___ , organize, i________, measure & d_______ (P. Drucker, 1977)

• Workforce

People involved in corporate structure

• Shareholders

• Managers plan , organize, integrate, measure & develop (P. Drucker, 1977)

• Workforce

• Do you prefer to work alone or in a team?

• Is it better to have one immediate boss or to work for more than one manager?

• What do you prefer: to be responsible to someone for your work, or to be responsible for people who report to you?

→ MK, p 22• Vocabulary

Read Company structure (MK, p 22-23)...... and match ideas to paragraphs– Contemporary businesses are too complex for

hierarchies– Disbanded as soon as project is finished– 4 factors leading to flat hierarchies– Departments clash as they have different

objectives– Direct communication among departments– Knowing who your superior is– Middle management replaced by IT systems→ Comprehension→ Vocabulary

HW: Summarize the text in note form! (MK 22-23)

• If you like, use the following headings:Hierarchical structure (don’t forget to define it)

advantages disadvantagesFunctional structure (don’t forget to define it)

advantages disadvantagesFlattening hierarchies

4 reasons:Matrix management HAND IN NEXT

WEEK

Teams

https://www.youtube.com/watch?v=Wa5BfgJWb3o

Workforce:

employees /staff / personnel / human resources / labour

senior staff ≠ junior staffhigher-positioned ≠ lower-positionedsuperiors ≠ subordinates

Mary is Kate’s superior. Kate is Mary’s subordinate.

Vocabulary focus:

DIVISION OF RESPONSIBLITIES

What are you responsible for?

What are you in charge of?

What are your responsibilities?

CHAIN OF COMMAND AND LINE AUTHORITY

Useful vocabulary: superiors & subordinatesIn how many ways can you ask:Who is your superior? =Who do you r_ _ _ _ _ to?Who are you res _ _ _ _ _ ble to?Who are you acc _ _ _ _ _ ble to?Who are you s _ _ _ _ _ _ _ _ _ _ to?Who do you r _ _ _ _ _ _ instructions from?

CHAIN OF COMMAND AND LINE AUTHORITY

Useful vocabulary: superiors & subordinatesIn how many ways can you ask:Who is your superior? =Who do you report to?Who are you responsible to?Who are you accountable to?Who are you subordinated to?Who do you receive instructions from?

• Who can appoint you? promote

remove dismiss

AND IF YOU ARE THE SUPERIOR...• Who reports to you?

Who is accountable to you?Who do you give instructions to?

DELEGATION

Are responsibilities delegated?

Centralised decision-makingvs.

Decentralised decision-making

ORGANIZATIONAL UNITSThe company consists of…

is c_ _ _ _ _ _ d of…is d _ _ _ _ _d into…is made _ _ of…c_ _ _ _ _ ns ...in_ _ _ _es …

…departments (function-based: production dept.),

... divisions (product / market-based: Food division, Asian

division),... sectors, sections, business units, arms…

ORGANIZATIONAL UNITSThe company consists of…

is composed of…is divided into…is made up of…contains ...includes …

…departments (function-based: production dept.),

... divisions (product / market-based: Food division, Asian division),

... sectors, sections, business units, arms…

→ RB, p 36 – I - listen and fill in, II & IIIHW, p 37 do exercises IV & V (for tmw)

Challenge → Reader, p 38Earn 3 bonus points: Get ready to talk about one text

COMPANY DEPARTMENTS• PRODUCTION• CUSTOMER SERVICE• ADVERTISING• LEGAL • ACCOUNTS• PERSONNEL (HR)• MARKETING • FINANCE• PUBLIC RELATIONS (PR)

• RESEARCH & DEVELOPMENT (R&D)

• MAINTENANCE• DISTRIBUTION• QUALITY CONTROL• INFORMATION

TECHNOLOGY (IT) etc.

…deals with…is in charge of…is responsible for

WHICH COMPANY DEPARTMENT IS IN CHARGE OF…?

• money paid, received, borrowed, or owed • promoting, selling and distributing products or

services of its company• discovering new knowledge about products, to

create new and improved products• recruiting new staff & administrative aspects of the

employees• legal advice to other departments in the company • actual construction and preparation of products

Wikinomics

• MK, p 21• Read the text and answer the questions

HW

• Don’t forget to summarize the text on company structures – hand in next week

• RB, p 37 - tomorrow