Most companies are made up of three groups of people: the shareholders (who provide the capital) the management and the workforce. The management structure of a typical company follows this organization chart: Board of Directorsà Managing Directorà Senior managementà Middle management. At the top of the company hierarchy is the Board of Directors, headed by the Chairperson or President. The Board is responsible for policy decisions and strategy. It will usually appoint a Managing Director or Chief Executive Officer, who has overall responsibility for the running of the business. Senior managers (or company officers / top managers / executives/ head the various departments or functions within the company. The organization chart may include the following departments: a) Marketing, b) Communication and Public Relations (PR), c) Information Technology or IT, d) Personnel or Human Resource Management, e) Finance - Accounting and Control f) Production (or Line Department), g) Research and Development (R&D), h) Legal Affairs. Independent chains of command regulate the process of giving and taking orders.
2. THE PHILIPS COMPANY PROFILE (SB ex.1 page 6) Learn and render
The Philips Company was established in 1891 by Gerald Philips to manufacture light bulbs and other electric products. Since then the company followed a steady program of expansion and stimulated product innovation. The company protects its innovations by patents. Philips has developed a new and exciting product idea such as compact disc, which was launched in 1983.
Philips headquarters are in Eindhoven, Netherlands. It employs 256,400 people all over the world and has sales and service outlets in 150 countries.
The key to Phillips’ success can be described by two words. The first is innovation; the company R&R designers are constantly creating new products. The second is diversification; Phillips is active in about 100 businesses varying from consumer electronics to domestic appliances and from security systems to semiconductors. With such a wide range of products the company needs a complex system of management. Each product division has its own chairman; most of these chairmen are members of the Group Management Committee, which plans and implements all company decisions. The Supervisory Board monitors the general business of the group and it also advises and supervises the Board of Management.
The company creed is ‘Let’s make things better” It is committed to making better products and systems and contributing to improving the quality of people’s work and life. One recent example is of this is its ‘Genie’ mobile phone with voice control. To dial a number you just have to say it aloud. Its Web TV Internet terminal brings excitement of cyberspace into the living room.
Vocabulary to learn: (SB ex .1, page 7) ( SB ex..2 page7) Learn the terms.
an innovation to concentrate on - to specialize in
a strategy program of expansion - plan of growth
a policy to launch a product onto the market - to introduce
a patent to turn on - to produce
diversification to manage a business - to run
a range of products / a product line to monitor - to watch carefully
headquarters to implement - to put into practice
a location divisions - sectors
issues – important matters
3. Write the profile of any company you know about. Use the Internet for information or imagine. (E.g. Clear Water /×èñòàÿ Âîäà/
Name of company_________________
Sales in the previous year__________
4. THE FUNCTIONS OF AN EXECUTIVE. . ( SB Listening ex. 3 p.11) Learn and render.
In a company some people have more authority than the others. The executives (managers) move up the corporate ladder according to their personal abilities, proficiency and expertise.
The functions of the executives depend on their position in the management hierarchy. On the whole, the executives coordinate and evaluate work of the employees, make important decisions, set objectives, delegate authority, and perform general leading. It’s evident, that making careful decisions is the basis of good management. A good manager must be competent in his field, creative, punctual and well –organized. He or she must be able to work under pressure, do a lot of paper work and sometimes, red tape. The key competence for managers today is the ability to manage changes.
The role of the Personnel Manager of a big corporation is mostly concerned with manpower planning. This involves identifying the manpower requirements of the company. The Personnel Manager is responsible for recruiting and drawing up contracts for temporary personnel, as well as redeployment of permanent employees to new positions within the company.
5. Write the profile of an executive of a company the profile of which you previously completed.
Marital status _______________
Present position ___________________________________