4. What are the reasons for the existence of organizations and why are they so important to us?

The reasons for the existence of organizations are:

• make a profit

• provide education

• foster religion

• improve health care

• built a new football stadium

• provide services

• manufacture products

Organizations are essential to the way our society operates. In industry, education, health care and defense, organizations have created impressive gains for our standard of living and our worldwide image.

5. What managerial styles do you find the most/the least efficient?

The most efficient managerial style is one that balances exposure and feedback.

The least efficient managerial style is one in which managers use neither exposure nor feedback.

6. What are the major approaches to organizing a company?

There are major organizational structures:

• Functional structure;

• Division structure (along product lines);

• Geographic structure;

• The matrix structure;

• The customersentric approach;

• Flat structure;

• The Shamrock structure.

7. What are the functions of major departments in a traditional company?

1. The Board of Directors is responsible for:

• Strategic planning (overall policy);

• Setting goals;

• Approving annual budget;

• Selecting, appointing and supervising or reviewing the performance of the main directors and directors of departments.

2. A chairperson is accountable for shareholders.

3. Non-executive directors are usually not employees. They provide advices and give company prestige.

4. A Managing director/Chief Executive Officer is responsible for representing a company. He or she is in charge of the total management of a company.

5. A Chief Operating Officer is responsible for day-to-day running of a company.

6. A Production Department is responsible for:

• Manufacturing products;

• Is in charge of an introduction of a new up-to-date technology.

7. A Marketing Department is responsible for:

• Selling goods beneficially;

• Promoting goods on the market;

• Carrying out marketing research.

8. A Finance Department is responsible for:

• Financial planning;

• Managing financial risks;

• Record keeping;

• Recording financial transaction;

• Financial reporting to the high management.

9. R&D Department is responsible for:

• Carrying out research;

• Developing new product;

• Reducing industrial costs.

10. HR Department is responsible for:

• Recruiting;

• Selecting;

• Training and retraining;

• Dismissing;

• Motivating staff.

11. IT Department is responsible for:

• Implementing the new technologies;

• Providing informational security.

12. PR Department is responsible for:

• Maintaining and boosting the image of the company;

• Establishing and maintaining external contacts;

• Attracting customers;

• Communicating with customers.

8. What is the difference between a merger and a takeover?

In a merger decision is usually mutual between both firms. In a takeover usually one large company purchases a smaller company.

9. What are the major consequences of take-overs?

The major consequences are:

• Increase in sales/revenues;

• Venture into new businesses and markets;

• Increase market share;

• Decrease competition;

• Increase efficiency as a result of corporate synergies;

• Reduction of choice in the market for consumers;

• Job cuts;

• Cultural integration;

• Lack of motivation for employees.

10. What are the most important types of proprietorship?

The most important types of proprietorship are:

• A sole trader/proprietor;

• A limited partnership;

• An unlimited partnership;

• A private limited company;

• A public limited company.

11. What kings of partners can there exist?

There can exist the following partners:

• A partner with limited liability;

• A partner with unlimited liability;

• Shareholders;

• A sleeping partner;

• A secret partner.

12. What are the most important spheres of business?

• Manufacturing;

• Trade;

• Service;

• Banking;

• Insurance;

• High-tech companies;

• Real estate;

• Engineering.

13. What are the major types of verbal and non-verbal communication in business?

The major types of verbal communication are:

1. Written communication:

• Business letters;

• Electronic messages;

• Internal mail (memos, circular letters, telephone messages, reminders);

• Specific messages (reports, application documents, etc).

2. Oral communication:

• Negotiations;

• Interviews;

• Speeches and presentations;

• Telephone conversations.

The major types of non-verbal communication are:

1. Kinesic behavior:

• Posture;

• Gestures;

• Facial expressions;

• Eye contact.

2. Proxemics:

• Personal space;

• Office space or layout.

3. Paralanguage:

• The rate of speech;

• The tone and inflection of voice;

• Laughing;

• Yawing;

• Silence.

4. Object language:

• Architecture;

• Office design;

• Furniture;

• Clothing;

• Cars;

• Cosmetics.