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Doing the business

 

Read and memorize the following words, words combinations and word-groups:

 

 

1. The need for a solid structure within all business entities is “absolutely fundamental”, according to Ms Angela Tripoli, a lecturer in Business Administration at University College Dublin. “Organizational structure concerns who reports to whom in the company and how different elements are grouped together. A new company cannot go forward without this and estab­lished companies must ensure their structure reflects their target markets, goals and available tech­nology.”

2. Depending on their size and needs there are several organizational structures companies can choose from. Increasingly though, in the constantly evolving busi­ness environment, “many firms are opting for a kind of hybrid of all of them.”

3. The most recognizable set up is called the functional structure where a fairly traditional chain of command (incorporating senior management, middle management and junior management) is put in place. The main benefit of this system is clear lines of com­munication from top to bottom but it is generally accepted that it can also be a bureaucratic set up which does not favour speedy deci­sion-making.

4. More and more companies are organizing themselves along product lines where companies have separate divisions according to the product that is being worked on. “In this case the focus is always on the product and how it can be improved.”

5. The importance for multina­tional companies of a good geo­graphic structure, said Ms Tripoli, could be seen when one electrical products manufacturer produced an innovative rice cooker which made perfect rice - according to western standards. When they tried to sell it on the Asian market the product flopped because there were no country managers inform­ing them of the changes that would need to be made in order to satisfy this more demanding market.

6. The matrix structure first evolved during a project developed by NASA when they needed to pool together different skills from a variety of functional areas. Essentially the matrix structure organizes a business into project teams, led by project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between the various members of the teams.

7. During the 1980s a wave of restructuring went through industry around the globe. This process, known as delayering, saw a change in the traditional hierar­chical structures with layers of middle management being so removed. This development was driven by new technology and by the need to reduce costs. The over­all result was organizations that were less bureaucratic.

8. The delayering process has run its course now. Among the trends that currently influence how a company organizes itself is the move towards centralization and outsourcing. Restructuring has evolved along with a more “customercentric” approach that can be seen to good effect in the banks. They now categorize their customers and their complex borrow­ing needs into groups instead of along rigid product lines.



9. Another development can be seen in larger companies, which are giving their employees more freedom to innovate in order to maintain a competitive edge.

10. Ms Julia MacLauchlan, Director of Microsoft's European Product Development Centre in Dublin, said the leading software company had a very flat organizational structure. “There would not be more than around seven levels no between the average software tester and Bill Gates,” she said.

11. Microsoft is a good example of a company that is structured along product lines. In Ireland, where 1,000 employees work on localization 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.

12. It works, said Ms Maclauchlan, because everyone who works in the unit is “incredibly empowered. Without a huge bureaucratic infrastructure people can react a lot more quickly to any challenges and work towards the company's objectives.”

From The Irish Times

 

Exercises

 

Exercise 1. Find where in the text it is said about the points given below. Put down the number of the paragraph:

1. the appearance of the matrix structure

2. the main benefit of the functional structure

3. reasons for delayering in the traditional hierarchical structures

4. results of delayering in the traditional hierarchical structures

5. the meaning of “customercentric ” approach of restructuring

 

Exercise 2. Find the terms in the text which designate the following:

1. a structure organizes a business into project teams to carry out certain objectives

2. a structure in which companies have separate divisions according to the product that is being worked on

3. a structure where country managers inform­ of the changes that would need to be made in the product in order to satisfy the market

4. a structure in which a fairly traditional chain of command is put in place

 

Exercise 3. Say if the following statements are true or false:

1. In the product lines structure the focus is always on the target market.

2. Many firms are opting for a kind of hybrid of all of organizational structures.

3. Training is not vitally important in the matrix structure.

4. During of the delayering process in the traditional hierarchical structures layers of middle management were removed.

5. The move towards centralization and outsourcing influences on an organizational structure of a company.

6. A company of the functional structure can be a bureaucratic set up which favours speedy deci­sion-making.

Exercise 4. Answer the following questions:

1. What are main kinds of organisational structure?

2. Is one kind of organisational structure more common than the others?

3. When did “delayering” take place?

4. What were the reasons for delayering and what were the results?

5. How does Julia MacLauchlan describe Microsoft's organisational structure?

6. What must established companies insure?

Exercise 5. Explain the concept of organizational structure.

 

Exercise 6. List main organizational structures companies can choose from.

 

Exercise 7. Prove that Microsoft is a good example of a company that is structured along product lines.

 

Exercise 8. State the importance for multina­tional companies of a good geo­graphic structure.

 

Exercise 9. Make up a plan covering the main ideas. Discuss the text according to the plan.

 

 

Unit II


Date: 2015-01-12; view: 1382


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