ORGANIZATION STRUCTURE

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business, economy, english

Friday, March 21, 2014

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Most organizations have a hierarchical or pyramidal structure, with one person or a group of eople at the top, and an increasing number of people below them at each successive level. There is a clear line or chain of command running down the pyramid. All the people in the organization know what decisions they are able to make, who their superior (or boss) is (to whom they report), and who their immediate subordinates are (to whom they can give instructions).

Every organisation/company has a hierarchy/structure where some members of staff are more senior, powerful or important than others. For example, a manager in a factory is more senior or powerful than a normal worker. This may seem obvious and simple, but it isn't. In the English-speaking world the job titles of positions in a corporate hierarchy/structure change not only between different countries but also between companies. It is very confusing, not only for learners of English, but also for native speakers. We will look at the business English titles of the different positions in a corporate hierarchy/structure and the differences in seniority.

The Board of Directors or as it is often called The Board, is the group of people who make the big decisions about the company. About what we do and how we do it. They are employed by the owners, the shareholders, to oversee or supervise the company for them. 

The board is non-executive, which means they aren't involved in the day-to-day running of the company.

The most important member of The Board is called the Chairman, in some companies the Chairman is called the President.

The person responsible for the day-to-day running of the company is the Managing Director. They are the most senior manager in a company. In the United States, they are normally called the Chief Executive Officer.

A Finance Director is the job title for a senior manager who is responsible for the Finance Department. They are less senior than the Managing Director or Chief Executive Officer, who they have to report to. Normally, the boss or head of each department is called a Director, like Sales Director or IT Director. In America, the title of this position is Chief Financial Officer etc. 

Under them in the company structure we have Managers. And under the Managers, we have Supervisors. Although today it is more common to call a Supervisor, a Team Leader. They make sure that staff are doing what they should. Then under them, you have Analysts and Assistants, who don't have any management responsibilities. 

In theory the job title of Analyst is for a position where they have to analyse information or data, for example a Business Analyst analyses data to find trends. An Assistant is the general job title for a normal member of staff, like a Customer Care Assistant. But the title of the position depends on the company.

PACKAGING COMPANY

The other way in which a company is organised can be illustrated for a packaging company. The company will be owned by shareholders that choose directors to look after their interests. The directors then appoint managers to run the business on a day-to-day basis. The Managing Director has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments.

The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm.

The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organising manpower to meet the customers' orders.

The Sales Manager is responsible for making contact with customers and obtaining orders from those contacts.

The Company Accountant controls all the financial dealings of the company and is responsible for producing management accounts and financial reports.

STRUCTURE

Other organisations will have different structures. For example most organisations will have a marketing department responsible for market research and marketing planning. A customer services department will look after customer requirements. A human resources department will be responsible for recruitment and selection of new employees, employee motivation and a range of other people focused activities. 

In addition there will be a number of cross-functional areas such as administration and Information Technology departments that service the functional areas of the company. These departments will provide back up support and training.

Organisations are structured in different ways:

1. by function as described above 
2. by regional area - a geographical structure e.g. with a marketing manager North, marketing manager South etc
3. by product e.g. marketing manager crisps, marketing manager drinks, etc
4. into work teams, etc. 

Reporting in organisations often takes place down the line. An employee might be accountable to a supervisor, who is accountable to a junior manager, who is then accountable to a senior manager - communication and instructions can then be passed down the line.

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Source:

1. http://www.blairenglish.com/exercises/business/exercises/hierarchy/hierarchy.html
2. http://businesscasestudies.co.uk/business-theory/strategy/legal-forms-of-business.html