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UNIT 3

MANAGEMENT STRUCTURE

LEAD-IN

Task 1. Discuss the following questions.
1. What is a management structure in business?

2. What organizational types of management do you know?
READING
Task 1. Discuss this question before you read the text.
How can you explain the meaning of the picture below?


Task 2. Match the terms in Column A with the correct definitions in Column B.

A	B
1. Organization	a) the person who leads or commands a group, organization, or a country.
2. Hierarchy	b) the activity of buying and selling goods and services.
3. Business	c) a system in which people or things are arranged according to their importance.
4. Leader	d) group of people who work together in an organized way for a shared purpose.

READING
Text A.
Task 3. Read the text bellow and then discuss the following questions.
1. Why is an organizational structure important in business?

2. What are the characteristics of functional, regional and matrix organizational structures?

3. What other organizational structures do you know?

4. What is the best organizational structure?
WHICH ORGANIZATION STRUCTURE IS RIGHT FOR YOUR BUSINESS?

1. 
   When setting up a new business, you should pay careful attention to designing your company's organizational structure. This should be decided according to your company's size, industry and aims. You should think of organizational structures as communication flowcharts. Poorly conceived organizational structures will result in sluggish, inefficient communication in which managers at various levels are required to deliver information to too many people for too many levels of approval. Well designed organizational structures will produce efficient communication channels and encourage fast, clean decisions. Let's take a look at several of the most common forms of organizational structures.
   
2. 
   The functional structure is the most commonly used by most businesses. It's a top down flowchart with a high ranking executive at the top, with multiple middle managers - such as the human resources, marketing, accounting and engineering department heads - all directly reporting to the top executive. These departments are managed separately from each other by the department heads, and they only answer to the top level manager.
   
3. 
   If your company gets really big and starts to go national or global, you need to split your company structure into regional segments. This is a variant of the functional structure, with the top executives based in your home country at the top, with the reporting segments being comprised of regional managers. This insures that your demands in different markets are being met in a localized fashion. Localization is the goal here, in all aspects - pricing, real estate and product lines. Large companies which have tried to use a single pricing strategy on a static product line across multiple geographic markets have often failed miserably, being eaten alive by smaller regional competitors.
   
4. 
   The matrix structure is often used by video game and movie companies, with various departments, all equal, working in tandem to produce a single final product. In this case, a strong manager at the top - such as a video game publisher or movie director - acts as a team leader to insure that each segment receives the data they need to complete their separate task.
   

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(Adapted from www.businessdictionary.com>)

Task 4. Are the following statements (1-7) true, false or not given according to the Text A?
1. When starting a new business, you should carefully focus on designing your company's organizational structure.

2. Poorly designed organizational structures will result in efficient communication.

3. Well designed organizational structures will produce fast and clean decisions through an efficient communication channels.

4. If your company is big and starts to grow globally, you need to divide your company structure into regional segments.

5. If your company offers services, such as healthcare, you can use the customer-based organizational structure.

6. Large companies which have tried to use a single pricing strategy on a static product line across multiple geographic markets have often failed miserably, being completely destroyed by smaller regional companies.

7. In matrix structure, the leading manager at the top acts as a team leader to insure that each segment procures the data they need to complete their separate task.
Task 5. Match the sentence beginnings (1-6) with the correct endings (a-f) to make a short summary of the Text A. Read the text A again if necessary.
1. Well designed organizational structures will produce efficient communication channels and …………………

2. The functional structure is the most commonly used by …………………..

3. Localization is the goal here, in all aspects - pricing, real estate and ………….

4. Large companies which have tried to use a single pricing strategy on a static product line across multiple geographic markets have often failed miserably, being eaten alive by ……………………

5. The matrix structure is often used by video game and movie companies, with various departments, all equal, working in tandem to produce ………………..

1. 
   a single final product.
   
2. 
   encourage fast, clean decisions.
   
3. 
   smaller regional competitors.
   
4. 
   product lines.
   
5. 
   most businesses
   

VOCABULARY
Task 1. Match the words in Column A with the correct definitions in Column B.

A	B
1. flowchart	a) the process of carrying out an activity only in a particular area of the world.
2. multiple	b) obvious.
3. glaring	c) consist of.
4. comprise	d) in a pitiable or contemptible manner; terribly.
5. miserably	e) having or involving several parts, elements, or members.
6. localization	f) a diagram that shows step-by-step progression through a procedure or system especially using connecting lines and a set of conventional symbols.

Task 2. Read the Text A again if necessary and find the words which have a similar meaning to the following.
1. turn attention to (paragraph 1)

2. work side by side (paragraph 4)

3. be completely destroyed (paragraph 3)

4. poorly organized (paragraph 1)

5. start (paragraph 1)

7. in agreement with (paragraph 1)
Task 3. Complete the sentences (1-7) with words and phrases from the box.

desired goals organization employees staff efficient communication encourage

1. The goal of management seminars is to ……… managers and employees to promote positive workplace.

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2. Management is the act of getting people together to accomplish …………… and objectives using available resources efficiently and effectively. 

3.  The HR department needs to make sure that the business provides their …….. with everything they need to be more effective at their jobs. 

4. A business ………… is an entity aimed at carrying on commercial business by providing goods or services, to meet needs of the customers. 

5. …………… is the ability to deliver a clear message in the shortest amount of time. 

6. Managers who are able to pass information on to their team effectively allow their ……….. to know exactly what their responsibilities are and what is expected of them. 
LISTENING
Task 1. Watch the video with Sheri Ascencio, the Director of Global Demand Generation at Mcmurdo Group. For questions 1-8, choose the most suitable answer from a, b or c.

(https://www.youtube.com/watch?v=TXG9-VRrZx8&ab_channel=McMurdoGroup)

1. Sheri Ascience began working at Boat Tracks in 2010 in their San Diego ………

a) headquarters

b) department

c) job
2. The marketing team became the first group to start working within a …………

a) Matrix management

b) Matrix structure

c) Functional structure
3. Sheri Asciencio had new ………………..in different countries, different time zones, and with different cultural norms.

a) team members

b) companies

c) offices
4. Before the matrix, she had …………………… and they would agree on the goals and priorities together.

a) a global manager

b) a single manager

c) three managers
5. You have to make a real effort to ensure that communication is happening with colleagues who might speak ……………….

a) other languages

b) English

c) two languages
6. Sheri Asciencio has been effective in a matrix …………… for several reasons.

a) management

b) organization

c) work
7. Sheri Asciencio uses repeatable …………….. and organizational tools to standardize how she works across business units.

a) processes

b) commands

c) choices
8. They want to drive profitable …………….. for the company through the matrix.

a) organization

b) result

c) job
Task 2. Watch the video again with Sheri Ascencio, the Director of Global Demand Generation at Mcmurdo Group and answer the following questions.
1. What does Sheri Ascencio do?

2. Why did the group start working within a matrix structure?

3. How did her work change?

4. How did Sheri Ascencio overcome the new challenges with the matrix organizational structure?

5. What are Sheri’s goals for the future?
SPEAKING



Task 1. Work in groups of 3-4 students. Discuss the roles of project and functional managers. Use the phrases from the Useful language box below.
A matrix organization has a complex structure in which the reporting is structured as a matrix. Employees in a matrix organization generally report to a project manager as well as a functional manager. Discuss the roles of project and functional managers. Use the phrases from the Useful language box below.
Group A: The role of a project manager in an organization.

Group B: The role of a functional manager in an organization

Useful language

Clarifying one’s point or idea
- Let’s me explain that ………….

-Let me explain that in more detail ……

- Let me put it in another way ………

- In other words………………

-To say this differently ………………

-To put it differently ……………..

-Could you explain/ clarify what you mean by…….?

-Well, actually, what I said / meant was……………

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READING

Task 1. Match the sentence beginnings (1-4) with the correct halves (a-d) to make a short summary.


1. "Matrix" is………………………………………………….

2. Matrix management is………………………………………………………

a) a situation or surrounding substance within which something else originates, develops or is contained.

b) the process of taking staff from different departments to work as a team to deliver a product or a service.
Text B.
Task 2. Read the text bellow and then discuss the following questions.
1. What is the purpose of a matrix structure?

2. What businesses used a matrix structure? Why?

3. What do you think why a matrix structure was popular till 1988s?
MATRIX STRUCTURE SUITS BUSINESSES WITH DIVERSE PRODUCTS AND DIVERSE MARKETS
Matrix management was enormously popular in the 1970s and 1980s. Famous company like Philips, the Dutch multinational electronics company, was the first company to set up a matrix structure after the Second World War. It had national organizations (NOs) and product divisions (PDs), and for a while they operated successfully as a network. The network was held together by a number of coordinating committees, which resolved any conflict between the two.

Another example is of Digital Equipment Corporation founder Ken Oslen who popularized Matrix structure Management. There was virtually no organizational structure in the early years of the company’s existence. The company was founded in 1957 with a $70,000 loan; it became America’s second-largest computer company, after IBM. By 1964 the company required some organizational structure, as various engineering groups were not coordinating well with other functions of the company. Olsen structured the company in a matrix framework, which involved product line managers. Each manager had complete responsibility for a product line, from conceptualization to sales, and was accountable for its performance. Using this structure, the company had developed over twenty new product lines by the mid-1970s.

ABB (ASEA Brown Boveri) is a Swedish-Swiss multinational corporation headquartered in Zurich, Switzerland, operating mainly in robotics, power, heavy electrical equipment, and automation technology areas. By creating a matrix organizational structure and establishing global and regional management, ABB earned many benefits. The operations of frontline operating companies were integrated with ABB’s worldwide operations through the matrix. As a result, these companies got an international identity, and their exports increased. The companies got access to the worldwide distribution network of ABB, through the matrix structure.

Matrix structure remained in fashion till 1980s but in terms of work flow and reporting they have negative consequences. Individuals need to define and redefine their roles in the organization as they are interdependent. Accountability becomes horizontal instead of vertical. Hence it appears like a diluted structure.
(Adapted from http://matrix-structure-suits-businesses-with-diverse-products-and-diverse-market)
Task 3. Match each company (a-c) with the information given about them (1-5).
a) Philips

b) Digital Equipment Corporation

c) ABB (ASEA Brown Boveri)
1. The company became America’s second-largest computer company.

2. The company set up a matrix structure after the Second World War.

3. The company was founded in 1957.

4. The corporation operated in robotics, power, heavy electrical equipment, and automation technology areas.

5. The founder of Digital Equipment Corporation, Ken Oslen popularized Matrix structure Management.
Task 4. Match the sentence beginnings (1-6) with the correct endings (a-f) to make a short summary of the Text B. Read the Text B again if necessary.
1. Philips had national organizations and product divisions, and for a while they operated successfully as ………………..

2. By creating a matrix organizational structure and establishing global and regional management, ABB earned ………………..

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3. Olsen structured the company in a matrix framework, which involved ………

4. As a result, these companies got an international identity, and their …………

5. The companies got access to the worldwide distribution network of ABB, through ……………... ….

6. Matrix structure remained in fashion till 1980s but in terms of work flow and reporting they have ………………
a) product line managers

b) a network

c) exports increased

d) many benefits

e) the matrix structure

f) negative consequences

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