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43
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.
COMPREHENSION CHECK
Which of the following paragraphs most accurately summa-
rizes the text, and why?
First summary:
Although most organizations 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 decentralization: the separation of the organization
into competing autonomous divisions.
Second summary:
Most business organizations have a hierarchy consisting of sev-
eral levels and a clear line of command. There may also be staff posi-
tions that are not integrated into the hierarchy. The organization might
also be divided into functional departments, such as production, fi-
nance, marketing, sales and personnel. Larger organizations are often
further divided into autonomous divisions, each with its own func-
tional sections. More recent organizational systems include matrix
management and teams, both of which combine people from different
functions and keep decision-making at lower levels.
TEXT 2
Read the text about the different ways in which companies are
organized and answer these questions.
1. Four main kinds of organisational structure are described in
the article. What are they?
2. Is one kind of organisational structure more common than the
others?
3. When did 'delayering' take place?
44
4. What were the reasons for delayering and what were the re-
sults?
5. How does Julia MacLauchlan describe Microsoft's organisa-
tional structure?
Doing the Business
Roisin Ingle hears how efficient management structures are vi-
tal for success.
The need for a solid structure within all business entities is 'ab-
solutely fundamental', according to Ms Angela Tripoli, a lecturer in
Business Administration at University College Dublin. 'Organisational
structure concerns who reports to whom in the company and how dif-
ferent elements are grouped together. A new company cannot go for-
ward without this and established companies must ensure their struc-
ture reflects their target markets, goals and available technology.'
Depending on their size and needs there are several organisa-
tional 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'.
The most recognisable 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.
More and more companies are organising themselves along
produсt 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.'
The importance for multinational companies of a good geo-
graphic 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.
The matrix structure first evolved during a project developed by
NASA when they needed to pool together different skills from a vari-
good for decision-making, and they run the risk of relational problems, 4. What were the reasons for delayering and what were the re-
unless they are small and have a lot of self-discipline. In fact they still sults?
require a definite leader, on whom their success probably depends. 5. How does Julia MacLauchlan describe Microsoft's organisa-
tional structure?
COMPREHENSION CHECK
Doing the Business
Which of the following paragraphs most accurately summa- Roisin Ingle hears how efficient management structures are vi-
rizes the text, and why? tal for success.
First summary: The need for a solid structure within all business entities is 'ab-
Although most organizations are hierarchical, with a number of solutely fundamental', according to Ms Angela Tripoli, a lecturer in
levels, and a line of command running from the top to the bottom, Business Administration at University College Dublin. 'Organisational
hierarchies should be avoided because they make decision-making structure concerns who reports to whom in the company and how dif-
slow and difficult. A solution to this problem is matrix management, ferent elements are grouped together. A new company cannot go for-
which allows people from the traditional functional departments of ward without this and established companies must ensure their struc-
production, finance, marketing, sales, etc. to work together in teams. ture reflects their target markets, goals and available technology.'
Another solution is decentralization: the separation of the organization Depending on their size and needs there are several organisa-
into competing autonomous divisions. tional structures companies can choose from. Increasingly though, in
Second summary: the constantly evolving business environment, 'many firms are opting
Most business organizations have a hierarchy consisting of sev- for a kind of hybrid of all of them'.
eral levels and a clear line of command. There may also be staff posi- The most recognisable set up is called the functional structure
tions that are not integrated into the hierarchy. The organization might where a fairly traditional chain of command (incorporating senior
also be divided into functional departments, such as production, fi- management, middle management and junior management) is put in
nance, marketing, sales and personnel. Larger organizations are often place. The main benefit of this system is clear lines of communication
further divided into autonomous divisions, each with its own func- from top to bottom but it is generally accepted that it can also be a
tional sections. More recent organizational systems include matrix bureaucratic set up which does not favour speedy decision-making.
management and teams, both of which combine people from different More and more companies are organising themselves along
functions and keep decision-making at lower levels. produсt lines where companies have separate divisions according to
the product that is being worked on. 'In this case the focus is always on
TEXT 2 the product and how it can be improved.'
The importance for multinational companies of a good geo-
Read the text about the different ways in which companies are graphic structure, said Ms Tripoli, could be seen when one electrical
organized and answer these questions. products manufacturer produced an innovative rice cooker which
1. Four main kinds of organisational structure are described in made perfect rice – according to western standards. When they tried to
the article. What are they? sell it on the Asian market the product flopped because there were no
2. Is one kind of organisational structure more common than the country managers informing them of the changes that would need to
others? be made in order to satisfy this more demanding market.
3. When did 'delayering' take place? The matrix structure first evolved during a project developed by
NASA when they needed to pool together different skills from a vari-
43 44
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