B. Read the text and find the answers to the following questions.

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1) What company has a flat organization?

2) What company is hierarchical one?

3) Who is in charge of day-to-day running of the company?

4) Who is the head of the company?

5) Whom is the company run by?

6) Who is in overall control of the company?

7) What are the typical departments in the company? What are they responsible for?

Usually there are several levels in the organization chart of the company. A company with only a few levels has a flat organization. A company with a lot of levels is often very hierarchical with a clear chain of command: a boss who has subordinates, who in turn have their own subordinates and so on. The hierarchy might be internally divided into functional departments. As a rule the shareholders are the owners of the company, and although in theory they have control through votes at the annual meetings, in practice day-to-day running of the firm is left in the hands of specialist directors.

The traditional types of organizational structure are line and functional ones. The modern and comparatively new types of organizational structures are divisional and matrix

The Managing Director (sometimes called Chief Executive or President in the USA) is the head of the company. The company is run by a Board of Directors; each Director is in charge of department. However, the Chairman of the Board is in overall control and may not be the head of any one department.

           Most companies have Finance department that is responsible for keeping a record of all payments made and received; Sales, Marketing (sometimes part of Sales) that is responsible for carrying out market research and organizing the activities of the sales representatives; Production that is in charge of organizing quality control to maintain product standards; Research and Development (R&D) and Personnel Department that is responsible for recruitment and selection. These are the most common departments, but some companies have others as well.

Most departments have a Manager, who is in charge of its day-to-day running, and who reports to the Director; the Director is responsible for strategic planning and for making decisions. Various personnel in each department report to the Manager.

It is important to find an organizational structure that works best for the organization, as the wrong set up could hamper proper functioning in the organization.

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