UNIT 3: COMPANY
STRUCTURE
A. Lead-in
I. Which department -
production, finance,
accounting, marketing,
sales,
human resources, etc. -
of an organization do you
think is the most
interesting to work in?
- I think it depends on
individuals’ interest and
ability. From my
perspective, I would
like to choose working in
marketing and
specifically marketing
analyst because I love
collecting and analyzing
data on consumer
behavior, market trends,
and competitors
to inform marketing
strategies and tactics.
II. What reasons can you
think of for why
departments get into
conflict with
each other?
- Firstly, I think of
different perspectives
between people in a
department. Having
different opinions is a
normal thing but all
members have a high
ego, they are
reluctant to listen and
understand others’ ideas.
It is really a direct reason
which
results in conflict in a
department.
- Secondly, poor
management is a big
thing.
III. Is it better to have one
immediate boss or to
work for more than one
manager?
- In my opinion, I prefer
having one immediate
boss for some reasons.
Firstly, having
one boss means that only
one person has a right to
make decisions after
listening to
employees’ opinions.
Secondly, there is only
one person who guides,
trains and
coaches and there is no
conflict between
managerial styles.
IV. Do you prefer to work
alone or in a team?
- “If you want to go fast,
go alone. If you want to
go far, go together.”
- I would choose working
in a team, because being
a part of a team gives me
a sense of
companionship.
Moreover, I can learn a
lot of new interesting
things from my
teammates and my
leader.
V. Is it more motivating
to be responsible to
someone for your work,
or
responsible for people
who report to you?
- I think holding
accountable for people
who report to me is more
motivating. Because
I have to work and learn
a lot to become a role
model for them.
B. Reading
I. Reading 1: Wikinomics
and the future of
companies
1. Reading summary
In the future the
companies will use the
Internet and the
“wikinomics” principle.
The word
“wikinomics” is a
combination of “wiki” and
“economics”. This
principle is the extension
of
“outsourcing”. The
wikinomics principle is
the mass collaboration
between businesses and
markets using electronic
communications.
Wikinomics is based on 4
powerful new ideas:
openness, peering,
sharing, and acting
globally.
2. Answers
a. Read the text and
answer questions
● How is the world of
organized work
changing?
=> Companies will use
the Internet and the
“wikinomics” principle.
● In what ways could
your organization,
company or business
school use the
wikinomics principles?
=> Collaborating with
people outside the
traditional corporate
structure,
UNIT 3: COMPANY
STRUCTURE
A. Lead-in
I. Which department -
production, finance,
accounting, marketing,
sales,
human resources, etc. -
of an organization do you
think is the most
interesting to work in?
- I think it depends on
individuals’ interest and
ability. From my
perspective, I would
like to choose working in
marketing and
specifically marketing
analyst because I love
collecting and analyzing
data on consumer
behavior, market trends,
and competitors
to inform marketing
strategies and tactics.
II. What reasons can you
think of for why
departments get into
conflict with
each other?
- Firstly, I think of
different perspectives
between people in a
department. Having
different opinions is a
normal thing but all
members have a high
ego, they are
reluctant to listen and
understand others’ ideas.
It is really a direct reason
which
results in conflict in a
department.
- Secondly, poor
management is a big
thing.
III. Is it better to have one
immediate boss or to
work for more than one
manager?
- In my opinion, I prefer
having one immediate
boss for some reasons.
Firstly, having
one boss means that only
one person has a right to
make decisions after
listening to
employees’ opinions.
Secondly, there is only
one person who guides,
trains and
coaches and there is no
conflict between
managerial styles.
IV. Do you prefer to work
alone or in a team?
- “If you want to go fast,
go alone. If you want to
go far, go together.”
- I would choose working
in a team, because being
a part of a team gives me
a sense of
companionship.
Moreover, I can learn a
lot of new interesting
things from my
teammates and my
leader.
V. Is it more motivating
to be responsible to
someone for your work,
or
responsible for people
who report to you?
- I think holding
accountable for people
who report to me is more
motivating. Because
I have to work and learn
a lot to become a role
model for them.
B. Reading
I. Reading 1: Wikinomics
and the future of
companies
1. Reading summary
In the future the
companies will use the
Internet and the
“wikinomics” principle.
The word
“wikinomics” is a
combination of “wiki” and
“economics”. This
principle is the extension
of
“outsourcing”. The
wikinomics principle is
the mass collaboration
between businesses and
markets using electronic
communications.
Wikinomics is based on 4
powerful new ideas:
openness, peering,
sharing, and acting
globally.
2. Answers
a. Read the text and
answer questions
● How is the world of
organized work
changing?
=> Companies will use
the Internet and the
“wikinomics” principle.
● In what ways could
your organization,
company or business
school use the
wikinomics principles?
=> Collaborating with
people outside the
traditional corporate
structure,
UNIT 3: COMPANY STRUCTURE
A. Lead-in
I. Which department - production, finance, accounting, marketing,
sales, human resources, etc. - of an organization do you think is the
most interesting to work in?
- I think it depends on individuals’ interest and ability. From my
perspective, I would like to choose working in marketing and
specifically marketing analyst because I lovecollecting and analyzing
data on consumer behavior, market trends, and competitors to inform
marketing strategies and tactics.
II. What reasons can you think of for why departments get into conflict
with each other?
- Firstly, I think of different perspectives between people in a
department. Having different opinions is a normal thing but all
members have a high ego, they are reluctant to listen and understand
others’ ideas. It is really a direct reason which results in conflict in a
department.
- Secondly, poor management is a big thing.
III. Is it better to have one immediate boss or to work for more than
one manager?
- In my opinion, I prefer having one immediate boss for some reasons.
Firstly, having one boss means that only one person has a right to
make decisions after listening to employees’ opinions. Secondly, there
is only one person who guides, trains and coaches and there is no
conflict between managerial styles.
IV. Do you prefer to work alone or in a team?
- “If you want to go fast, go alone. If you want to go far, go together.”
- I would choose working in a team, because being a part of a team
gives me a sense of companionship. Moreover, I can learn a lot of new
interesting things from my teammates and my leader.
V. Is it more motivating to be responsible to someone for your work, or
responsible for people who report to you?
- I think holding accountable for people who report to me is more
motivating. Because I have to work and learn a lot to become a role
model for them.
B. Reading
I. Reading 1: Wikinomics and the future of companies
Reading summary
In the future the companies will use the Internet and the “wikinomics”
principle. The word “wikinomics” is a combination of “wiki” and
“economics”. This principle is the extension of “outsourcing”. The
wikinomics principle is the mass collaboration between businesses and
markets using electronic communications. Wikinomics is based on 4
powerful new ideas: openness, peering, sharing, and acting globally.
II. Reading 2: The chain of command
Reading summary
Organizations have had 5 main ways to divide organizational
structure. Traditionally, hierarchical or pyramidal structure is an
organizational structure where there is one leader on top with
increasingly larger tiers of management teams below them. Benefit of
this way is that all people know what decisions they are able to make,
who their line manageris, and who their immediate subordinates are.
Way 2, functional structure is an organizational structure that groups
employees into differentdepartments based on areas of expertise.
Disadvantage of this way is that people are more concerned with the
success of their own department than the achievement of the common
goals of the company.
Way 3, flattening hierarchies and delegating responsibility (called a
Flattened Organizational Structure) is a modern tendency, which is to
reduce the chain of command, remove layers of management in an
organization. Benefit of this way is that most staff members have a
heightened level of responsibility and autonomy in their work and an
increased ability to make important decisions without consultation.
The fourth way is matrix management, in which people report to more
than one superior. Disadvantage of this way is that it is too complex
and it is sometimes necessary to give one department priority in
decision making.
The fifth way is working as teams, which means that the temporary
team is found to be in charge of an entire project and will be split up
as soon as the project is completed. Cons of this way is that
sometimes teams are not always very good at decision making and
require a strong leader.
CASE STUDY 1
1. Four people report to this manager
2. There are three levels of hierarchy including Yuan herself
+ The highest level is founder and CEO of three flower shops:
Yuan
+ The middle one is managers
+ The least important one is employees in three shops
3. a. Greater flexibility. A wider span of control will mean that the
manager will have to delegate more authority to each worker.
This could mean that their jobs become more interesting.
b. Limited supervision. A wider span of control does not create
more levels of hierarchy and therfore does not make the chair of
command longer. The manager will have reduced control with a
wider span of control.
4. If Yuan's business grows, it will need a new structure. More
departments will be needed, for example, marketing and human
resources. Yuan might need to recruit some more senior managers,
as she will not be able to take all of the decisions herself. A
marketing director would help her to advertise the flower shops.
The chain of command will get longer so that st aff in the shops will
have to wait longer for messages from the top. The structure will
depend on the span of control that Yuan wants and whether she
decides to decentralise the business. If she decides to grow flowers
as well as sell them, a new division will be needed.
CASE STUDY 2
1.
2. Three subordinates report to the supervisor
3.
An obvious advantage of working without a supervisor to monitor
and direct the employees’ activities is that the working
individuals learn to become independent and reliable even
without a leader. This means they do not need to be guided and
reminded constantly of their tasks.
Employees learn to become responsible in their scope of work and
accountable for the outcome of what they do. Moreover, their
problem-solving and decision-making skills are also developed. With a
supervisor around, the team usually depends on the supervisor when
it comes to decisions. If not, the members simply rely on groupthink,
which does not help those employees who are weak in decision-
making abilities.
Individuals will also learn a lot from self-management. They learn to
handle their own time and plan the activities for their work. Workloads
can vary depending on the need of the company to accomplish goals.
Normally, the employees would work on more than one or two tasks a
day. Because no one else will manage how they should go about their
tasks, being able to self-supervise will train them to become organized
and well-planned in their duties.
Working without any first-line supervisor can be challenging for an
organization. Amidst the advantages, there can be downsides to the
employees and the organization itself. Two crucial aspects will be
greatly affected with an autonomous work approach: workers’
efficiency and productivity.
A risk in having no direct supervisory role in the structure is the
tendency of workers to become inefficient at work because of the lack
of guidance and monitoring. Since employees differ in work attitude,
there may be individuals who lack self-discipline and motivation to do
their work when there is no supervisor to monitor their activities.
Inefficiency at work then leads to low productivity. Employees may not
accomplish as much as they are supposed to. Apparently, the
organizational goals will be affected and its growth will be hampered.
D. Unit review
I. What is an organizational structure? Define a chain of command.
- An organizational structure is the levels of management and division of
responsibilities within an organization.
- A chain of command defined by a ranking of authority where senior people
in an organization direct and control employees who are below them.
II. What is the main advantage of a chain of command?
- It is to distribute power and responsibilities, keep employees aware of
company news and create a system for sharing knowledge. It also ensures
each employee is responsible for their own work but also has a more senior
leader to offer support, encouragement and motivation.
III. Describe briefly a functional organizational structure.
- A functional structure is an organizational structure that groups employees
into different departments based on areas of expertise such as marketing
department, finance, human resources,etc. This type of structure is one of
the most common types in business, especially in larger companies, where
employees within each department typically only communicate with each
other, rather than dealing with workers in otherdepartments. Advantage of
this way is that within each team, experienced managers have the chance
to teach their team members the same skills they possess, resulting in an
enhanced skill set for all involved. Disadvantage of this way is that people
are more concerned with the success of their own department than the
achievement of the common goals of the company.
IV. In what ways can dividing a business functionally cause problems?
- Competition between departments: As employees within each department
work together, they begin to operate as a team with a focus on achieving
specific goals. This goal-oriented mindset, while typically positive, may
prompt competition between departments.
- Narrow scope: Without extra guidance and information from managers,
employees within departments may work with limited knowledge of how
their roles relate to the company's objectives. They may also not understand
how their work relates to other departments.
- Hindered decision-making: Formal organizational structures typically
require employees to seek approval from management and other authority
figures before making decisions. When management is unavailable for
feedback during time-sensitive projects, it may hinder the team's overall
progress.
V. Describe briefly a matrix organization.
- Matrix management, in which people report to multiple leaders. The matrix
design keeps open communication between teams and can help companies
create more innovative products and services. Using this structure prevents
teams from needing to realign every time a new project begins.
VI. What is the potential disadvantage of matrix management systems?
- Disadvantage of this way is that it is too complex and it is sometimes
necessary to give one department priority in decision making.
VII. What is centralization?
- Centralization is an organizational structure in which a single leader or
small group ofpeople makes all decisions. It's the opposite of
decentralization (or decentralization), in which decision-making power exists
in upper and lower levels of management.
VIII. Why is it not usually possible to organize a large organization in a single
hierarchy?
- Large organizations often require specialized functions and expertise. It is
not feasibleto have a single hierarchy that encompasses all these
specialized areas. Instead, different departments or divisions are created to
focus on specific functions, such as finance, marketing, operations, etc.
IX. What factors might lead companies to flatten their hierarchies?
- Slow decision-making.
- Bad at communication and collaboration.
X. Under what circumstances might teams not be effective?
- Individuals who do not mix well, or who do not have the necessary skills to
perform the variety of work at hand. Some teams may have too many
members with the same skills, while other teams suffer from a lack of proper
training.
