A further possibility is to have wholly autonomous, temporary groups or teams that are responsible for an entire project, and are split up as soon as it is successfully completed. Teams are often not very good for decision-making, and they run the risk of relational problems, unless they are small and have a lot of self-discipline. In fact they still require a definite leader, on whom their success probably depends.

Task 2. Comprehension 1

Which of the following three paragraphs most accurately summarises the text, and why?

First summary

Although most organisations are hierarchical, with a number of levels, and a line of command running from the top to the bottom, hierarchies should be avoided because they make decision-making slow and difficult. A solution to this problem is matrix management, which allows people from the traditional functional departments of production, finance, marketing, sales, etc. to work together in teams. Another solution is decentralisation: the separation of the organisation into competing autonomous divisions.

Second summary

Most business organisations have a hierarchy consisting of several levels and a clear line of command. There may also be staff positions that are not integrated into the hierarchy. The organisation might also be divided into functional departments, such as production, finance, marketing, sales and personnel. Larger organisations are often further divided into autonomous divisions, each with its own functional sections. More recent organisational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower levels.

Third summary

Most businesses are organised as hierarchies, with a clear chain of command: a boss who has subordinates, who in turn have their own subordinates, and so on. The hierarchy might be internally divided into functional departments. A company offering a large number of products or services might also be subdivided into autonomous divisions. Communication among divisions can be improved by the introduction of matrix management or teams.

Task 3. Talking Point 1

The text mentions the often incompatible goals of the finance, marketing and production (or operations) departments. Classify the following strategies according to which departments would probably favour them. Consult Speaking References p. 126–130.

The most common verbs for describing structure are:

consists of, contains, is composed of, includes, is made up of, is divided into

Model 1

The company consists of five main departments.

The marketing department is made up of three units.

The sales department is divided into two sections.

Other verbs frequently used to describe company organisation include:

to be in charge of, to support/to be supported by, to be accountable to, to be responsible for, to assist/to be assisted by.

Model 2

The marketing department is in charge of the sales force.

The marketing department is responsible for advertising, sales promotions and market research.

The five department heads are accountable to the Managing Director

a factory working at full capacity

a large advertising budget

a large sales force earning high commission

a standard product without optional features

a strong cash balance

a strong market share for new products

generous credit facilities for customers

high profit margins

large inventories to make sure that products are available

low research and development spending

machines that give the possibility of making various different products

self-financing (using retained earnings rather than borrowing)

Task 4. Writing 1

Write a description of a company you know, in about 100–150 words.