II Answer these questions:

1. What kind of structure do most organizations have?

2. What helpers do some people in organizations have?

3. What kind of structure do most manufacturing companies have?

4. What does a functional structure mean?

5. Is a functional organization efficient?

6. Which are two standard criticisms?

7. Is it efficient for a large organization manufacturing a range of products to a single production department? Why?

8. How can businesses simulate decentralization if they can’t be divided into divisions?

9. Why can’t people at lower levels make important decisions?

10. Why is it successful to create autonomous, temporary groups?

III. Which of the following three paragraphs most accurately summarizes the text, and why?

First summary:

Although most organizations are hierarchical, with a number of levels, and a line of command running from the top to the bottom, hierarchies should be avoided because they make decision-making slow and difficult. A solution to this problem is matrix management, which allows people from the traditional functional departments of production, finance, marketing, sales, etc. to work together in teams. Another solution is decentralization: the separation of the organization into competing autonomous divisions.

Second summary:

Most business organizations have a hierarchy consisting of several levels and a clear line of command. There may also be staff positions that are not integrated into hierarchy. The organization might also be divided into functional departments, such as production, finance, marketing, sales and personnel. Larger organizations are often further divided into autonomous divisions, each with its own functional sections. More recent organizational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower level.

Third summary:

Most businesses are organized as hierarchies, 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. A company offering a large number of products or services might also be subdivided into autonomous divisions. Communication among divisions can be improved by the introduction of matrix management or teams.

5. Study the organization chart, then complete the description of the organization:

Executive Management

Mr. Richard Baldwin

President and Chief Executive Officer

Dr. Kevin Higgins – Research and Development		Mr. David Eitingam – Production		Mrs. Petra Cusimano – Finance, Personnel, and Administration		Mrs. June Heskesh – Marketing and Sales
Mr. Patrick Amos – Multiplex Systems	Mr. Emma Wood – Cable Systems		Mr. Roger Carter – Microwave Systems	Ms. Vera Roberts – Space Systems	Mr. Robert Shaw – Mobile Radio Systems		Mrs. Sileen Nardo – Teleflex Ltd

The h…………of the company is Chief Executive Officer. He is also the P…………….and am………….of the Board of Directors. U……….him there are four e……….managers, responsible for research and d………., production, f………., personnel and administration and m……….and sales.

The company’s activities are d……….into six business areas, headed by different d……….managers. These managers r………directly to the Chief Executive Officer.

6. Role-play. Work in group of four. Imagine that you and your partners have just organized the company and now you discuss the best way of company organization. Student A is in favour of line structure, Student B is in favour of matrix structure, Student C is in favour of functional structure and Student D is in favour of staff structure. List the advantages and disadvantages and defend your point of view.

   Text C

   A Loan Agreement

Article 5 Overdue Payments

If the Borrower falls to make any required payment with respect the repayment of the loan, payment of the Interest, payment of the Management Fee, or any other items payable under this Agreement on the date(s) due, from and including the due date to and including the date of actual payment, at the rate of 2.375% per annum over and above the week, one month, three month or six month LIBOR determined on the due date(s) and from time to time thereafter for successive interest periods for so long as such amount remains unpaid, hereinafter called ‘the Overdue Interest’.

The applicable LIBOR shall be the arithmetic mean, rounded upwards, if necessary to the nearest whole multiple of 1/16 of 1% of the relevant LIBOR for deposits in the United States Dollars as quoted on the Renter’s monitor page ‘LIBO’ as or about 11: 00 a.m., London time on the due date(s) and thereafter for each successive Overdue Interest Period as defined below, on the second business day in London, England prior to the first day of each such Overdue Interest Period.

The Lender shall in its discretion determine the interest period with respect to any overdue amount. Overdue Interest Period. The Overdue Interest shall be calculated on a 360 day year basis, by counting the actual number of days elapsed in that period.

Any payment made by the Borrower after such a failure shall be applied first to the Expenses and the Management Fee, then to the Overdue Interest, then to accrued Interest and then to repayments of the Loan overdue.

Article 6. Method of payment

All amounts payable by the Borrower to the Lender under this Agreement, including, but not limited to, repayments of the Loan, payments of the Interest, the Overdue Interest, the Expenses, the Management Fee, shall be payable in the United States Dollars in net amounts receivable by the Lender and shall be paid by the Borrower in the full amount stated under this Agreement, without deduction or offset of any present or future income or other taxes, levies, charges or other with holdings or impositions of any nature whatsoever. If the Borrower is required to withhold income or other taxes or levies imposed on repayment of the Loan, payment of the Interest, the Overdue Interest, or other payments due to the Lender by or within Russia under this Agreement, the Borrower shall bear the taxes and/or levies regardless of their nature, and pay them to the relevant authorities.

Unless otherwise provided under this Agreement, all payments by the Borrower to the Lender under this Agreement, including, but not limited to repayments of the Loan, payments of the Interest, the Overdue Interest, the Expenses and the Management Fee, shall be made by telegraphic transfer, for good value, in the United States Dollars to the Lender’s account No. 15012 with the Chase Manhattan Bank N.A, London, Wallgate House, Coleman Street, London EC 2, England not later than 10: 00a.m. London time on the date each payment is due.

The Borrower shall sent pre-payment order by telex which provides amount with its value date to be paid, two business days before each due date to the Lender’s Bank as described above.