We can describe an organization in terms

of:
1.
2.
3.
4.
5.

Hierarchy
Responsibilities/functions
Titles
Affiliates
Structure

1. Hierarchy
MD (Managing Director
Sales Director
Sales Team

Marketing Director

Finance Director

Sales Assistant

The company is headed by the MD.

The Sales Director reports to the MD.
The Sales Director is under the MD.
The Sales Director is accountable to the MD.
The Sales Director is responsible TO the MD.

The Sales Director is assisted by a Sales Assistant.

The Sales Director is supported by a sales team.

2. Responsibilities/functions
The Controller is responsible for accounting
throughout the company.
The Production Department takes care of
product manufacturing.
The Factory Manager is in charge of plant and
equipment.

3. Titles
The main managerial titles (with common US
equivalents in brackets):

Chairman/Chairperson (President)
Managing Director (Chief Executive
Officer /Senior Vice-President)
Finance Director (Vice-President Finance)
Sales Manager (Sales Director)
*The directors and chairman of a company usually sit
on the board of directors (executive board)

4. Affiliates
Rossomon
International
Rossomon
France (51%)

Rossomon
Germany (70%)

Rossomon
Japan (55%)

Rossomon International is the parent company.

Rossomon France, Rossomon Germany and
Rossomon Japan are subsidiaries (more than
50% owned by the parent) daughter companies

5. Structure
Car Division
Production
Department
Methods
Section

Maintenance
Section

Sales
Department
Advertising
Section

After-sales
Section

The Car Division is divided into two departments.

The Car Division consists of two departments.
The Production Department comprises two
sections.

Board of Directors

Managing Director

Production

Marketing

Finance

R&D

Market Research

Financial Management

Sales

Accounting

Northern Region

Southern Region

Advertising&Promotion

Personnel

Chief Executive
Officer
Board of Directors

Vice-President
Finance

Vice-President
Production

3 Directors

Vice-President
Sales&Marketing

3 Directors

Vice-President
Human Resources

2 Directors

1 Director
Exports

1. Who is the company headed by?

Domestic Sales
2. Who is the CEO supported by?
3. How many people does the Board of Directors consist of?
4. Who are staff in each of the departments accountable to?
5. Who supports the Vice-President in each department?
6. In the Sal.&Mark. Dep., what is one of the two directors responsible for?
7. What is the other director in charge of?

Complete the description of the corporate organization using

the correct form of the words below.
DSA Corporation (New York)

Civil Engineering

Building Materials
Construction
KAF Inc.

Halcon

Conway

RoadCo

The DSA Corporation consists of three 1. ______, Building Materials,

Construction and Civil Engineering. DSA 2. ______ New York and comprises
four 3. ______, KAF Inc, Halcon, Conway and RoadCo. Each of these is
4. ______ a Senior Vice President who 5. ______ the 6. ______.
subsidiary, division, be based in,
parent company, be headed by, report to

Match phrases from A and B to make sentences explaining the

relationships between people in the department.
MANAGING DIRECTOR
HUMAN RESOURCES
MANAGER
Sabine Rives
Secretarial assistant
Monica Zabo
TRAINING OFFICER
Nick Papadakis

RECRUITMENT OFFICER
Paul Sanders

ADMINISTRATIVE ASSISTANT
Annie Melville
HUMAN RESOURCES ASSISTANTS
Sylvie Alcan
Joe Orsini

1 The Human Resources

manager reports
2 Human Resources is headed
3 Paul is in charge
4 Nick is responsible
5 Annie is responsible
6 Monica works
7 Sylvie works
B
a with Joe to support Paul.
b to Paul.
c by Sabine Rives.
d of a team of three.
e for Sabine.
f to the managing director.
g for organising training.

personal vs personnel
personal /p:snl/

personnel /p:snel/
1.

1.
2.
3.

your own
private
aimed at one person

personal assistant
personal loan
personal problems
personal life
for personal reasons

2.

people who work for a

company or organisation
(staff)
department responsible for
looking after all the people
working there and for
choosing new workers

Personnel Department
(Human Resources
Department)
Personnel Manager
personnel management

effective/efficient
effective =
1. having an effect
2. able to bring about the
intended results
3. making a striking impact

EFFECTIVE:
intervention
means
mechanism
method
strategy
treatment
way

efficient =
1. capable, able to perform
duties well
2. producing a desired or
satisfying result

EFFICIENT:
secretary
way
method
hotel staff
employee

British and American job titles

US
President
Chief Executive Officer
Vice President
Financial Controller
Director

UK
Chairman
Managing Director
Director
Accountant
Manager

Restructuring
to downsize = to delayer = to reduce the number
of management levels (especially middle
management)
downsizing = the recent trend for companies to
reduce the number of people they employ, often
by getting rid of layers of managers from the
middle of the hierarchy.
in this way the company becomes reorganised or
restructured = it becomes flatter (with fewer
layers of management) and leaner (with fewer,
more productive employees).

Restructuring
a group containing many types of business is
diversified
a groups basic business activity is its core business
sometimes, businesses decide to concentrate on
their core activities and sell off, spin off, or dispose
of non-essential assets. These asseste are called
non-core assets.
A sale of assets in this way is called a sell-off, spinoff, or disposal.
spin span - spun

 If a company sells a business, it divests

itself of that business divestment

If you pull out of a business activity, you

abandon it as part of a restructuring or
rationalisation program making the
business more efficient and profitable.

Management buy-outs (MBOs)

When a group is restructured, the
managers of a business that is to be sold
off may want to buy it themselves in a
management buy-out or MBO.
this is usually in combination with an
organisation providing finance in the form
of venture capital.

Leveraged buy-outs (LBOs)

In a leveraged buy-out or LBO, a company
is acquired by a group of investors, often
financed by heavy borrowing.
the debt is then paid out of the target
companys operating revenues or by selling
its assets.
The borrowing involved in LBOs is often
high-risk debt called junk bonds.