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Business English: Organizational Structures

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49 views10 pages

Business English: Organizational Structures

Uploaded by

CHÂU BÙI BẢO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

VIETNAM NATION UNIVERSITY - HO CHI MINH CITY

UNIVERSITY OF SOCIAL SCIENCES AND HUMANITIES - FACULTY


OF ENGLISH LINGUISTICS & LITERATURE

BUSINESS ENGLISH
HANDOUT
Lecturer: Ms. Trương Thị Mai Hạnh
Clascode: 2410NVA045L03
Date: 17/10/2024

A. Overall
I. Presentation: Chapter 7 - Business Today
II. Presentor: Group 4

GROUP 4 Responsibilities

1. Giang Thoại Xuân Diệp Conceptual work (I) + (II) + slideshow + handout

2. Võ Minh Ngọc Conceptual work (III) + slideshow + Q&A

3. Đỗ Trọng Nhân Presenting (I) + Q&A

4. Huỳnh Nhật Huy Presenting (II) + Q&A

5. Nguyễn Chính Mạnh Presenting (III) + Q&A

6. Nguyễn Bá Thành Presenting (III) + Q&A

B. Details
I. Organizational structures
1. Line organization: The oldest and most widely used type of organizational structure, and
also the most basic. Authority in a line organizational structure is entrusted at the top (i.e. the
authority of each management phase increases at every overlapping level). Usually, One
leader is in control at the top, followed by a certain number of managers. This kind of
organizational structure is often found in businesses that require tight operational control and
have a defined hierarchy. It is frequently applied to conventional, bureaucratic businesses (e.g.
police departments), military settings, and small family-owned businesses.
Key characteristics: Clear hierarchy, Centralized decision-making, Clear communication
channels, Simplicity.

2. Functional organization: A type of corporate structure where departments are divided


into groups according to their respective specializations and competencies. A functional
structure divides an organization into departments such as human resources (HR), marketing,
sales, finance, and so on (e.g. large corporations like Starbucks; Banks, Universities, etc.)
Key Characteristics: departmentalization by functions, high specialization, (encourage)
independence, efficiency & clear authority within departments, centralized decision-making

3. Line-and- staff organization: A way of managing a company by combining two types of


roles - Line roles (managers and workers who are directly related to production or providing
customer services) and Staff roles (specialists who provide support, like HR, IT, or legal
teams).
Key characteristics: This structure aims to make big companies more flexible without taking
power away from the managers, but it can also create power struggles and confusion if
responsibilities are not clearly defined. Solving these issues requires clear communication,
well-defined roles, and clear boundaries.
e.g.
- Hospital: doctors and nurses (line) do operations and stay focused on patient care, while the
legal team (staff) ensures that the hospital complies with healthcare regulations, and the HR
team helps recruit new doctors and nurses but doesn't interfere in medical decisions.
- Tech companies (Google, Apple, ...): An engineer (line role) develops new software features,
while the legal team (staff role) gives legal advice and ensures that the product complies with
data privacy laws. HR manages the engineer's contract and benefits.

4. Divisional organization: organizations are normally organized by departments and job


responsibilities, but the business is separated into segments based on product, market, or
geography, and each division can function independently. Each divided team would include
all business operations, such as engineering, sales, marketing, and other departments.
Key characteristics: Autonomy, Division-based grouping, flexibility, Duplicated functions,
Focus on results, Independence, Clear direction
e.g. Honda

*Project management

Key phases (1) Initiation: to form the initial ideas and turn ideas into meaningful/clear
goals -> (2) Planning: to outline and establish the project’s roadmap -> (3)
Execution: to carry out the actual work of the project, and to direct efficient
workflows -> (4) Monitoring & Controlling: run simultaneously/parallelly
with project execution to ensure the progress is on schedule -> (5) Closing:
To reflect on the completion of the project and contemplate the project’s
success & failures.

Key 1. Project: a temporary endeavor with defined aims, a clear beginning,


elements and a clear end, to create a product, service, or result (e.g. Build a
house, launch new software, develop a campaign)
2. Scope: Outlining the project’s goals, tasks, deliverables, guidelines,...
to complete the work.
3. Potential obstacles (Risks): Risk management involves anticipating
potential problems and having strategies to solve them.
4. Cost (Budget): Cost management ensures the project stay manageable
and affordable within financial limits
5. Quality: to manage the outcome’s quality to meet the stakeholders’
standards.
6. Time limit: Deadlines and Milestones
7. Resources: The human resources, materials, tools, and technologies
needed to complete the project.
8. Stakeholders: Individuals or groups interested in the project’s
outcome.
Key roles Project Manager: The person responsible for managing the project from start
to finish, ensuring that it stays on track and meets its objectives.
Project Team: The group of individuals working on different tasks to
complete the project.
Stakeholders: Anyone with an interest in the project’s outcome, such as
customers.
Sponsor: The person or group who provides the project with financial
resources and support,

Examples Event Management: London 2012 Olympics, Construction of the Burj


Khalifa in Dubai, the tallest building in the world, Software Development:
Microsoft’s Windows 10 Project, Healthcare Industry: COVID-19 Vaccine
Development, Entertainment Industry: Production of Avatar, etc.

5. Matrix organization: A management system that combines two or more types of structures,
typically functional and project-based, where employees have dual reporting relationships.
(Instead of having one direct supervisor like in a traditional hierarchy, employees in a matrix
organization report to multiple managers — each will be in charge of different areas within
the business, called functional departments (like marketing, finance, or engineering) or
specific projects.)
Key characteristics: Multiple Chains of Command, Cross-functional Teams , Dual focus,
Flexible and responsive.
e.g. Brands like General Electric (GE), Microsoft, IBM, Airbus, Sony, Nestlé, Toyota,
Deloitte, Johnson & Johnson, and Huawei
II. The changing organization
1. Definition: Organizational Change refers to a company's transformation, either internally
or externally, due to factors like internal planning or unexpected external events. It can
impact the structure, culture, goals, processes, services, and technology of the business.

2. Goals and Reasons for the Organizational Change: to ensure that an organization
remains competitive, efficient, and adaptable. Some main goals and reasons for
organizational change to happen, include:
● Cost Reduction: Implementing strategies to minimize expenses while maintaining
quality and efficiency.
Positive: Increased profitability, improved financial stability, and enhanced
investment affordability in the growing markets.
Negative: Potential employee morale issues, reduced service quality if not
managed carefully, and possible negative impact on company culture.
e.g. Layoff
● Innovation: Creating new ideas, services, products, programs, etc. that add value to
the organization, fostering a culture that encourages creativity, and continuous
improvement.
Positive: Increased competitiveness, entry into new markets, improved
customer satisfaction, and increased revenue streams.
Negative: High costs, associated with R&D, risk of unsuccessful projects, and
potential disruption of existing business models.
e.g. Artificial Intelligence (AI): AI is used by businesses to improve
customer experiences, simplify workflows, and stimulate product and service
innovation, in many fields, such as image recognition, natural language processing,
problem-solving, and autonomous systems (for travel and transportation, robotics,
GPS and navigation, personalized chatbots, etc.)
● The “Freedom Factors”: refer to elements within an organization that grant
employees autonomy, flexibility, and the ability to actively make decisions (Flexible
Work Hours and Workplace, Autonomy in Decision-Making to allow quick problem-
solving, Cross-Departmental Collaboration, Personalized Career Development,
Greater ownership, Minimal Supervision or Micromanagement, etc.)
e.g. Salesforce allows employees to choose where and how they work, giving
them the freedom to work remotely or in hybrid formats.
III. The informal organization
1. Definition: Organizational characteristics and relationships that are not part of the
formal structure but that influence how the organization accomplishes its goals.
Examples:
- An office book club
- Colleagues who gather for weekly or monthly game nights?
- A team that regularly meets for coffee breaks
2. Types of an informal organization
● Interest Groups: Formed by individuals sharing common interests or hobbies.
Examples include book clubs and sports clubs.
● Friendship Groups: Based on personal relationships and mutual interactions among
groups of individuals. Examples include colleagues who go out on movie nights or
dinners outside of work.
● Coalition Groups: Temporary alliances formed between employees to achieve
common goals. Examples include employees uniting to advocate for better working
conditions.
● Reference Groups: Consist of individuals with a unique identity who are respected
by others. Examples include a group of senior officials who guide and mentor junior
employees.
● Normative Groups: Formed by employees that establish workplace norms and
influence the workplace culture. Examples include informal leaders who influence the
behavior of other group members. (Informal leaders are individuals within an
organization who exert influence over others without holding a formal leadership title.)
● Electronic Networks: Groups formed through online platforms and social media,
where employees connect and interact virtually. Examples include a companywide
internal social media platform where employees connect and interact.
3. Pros and cons:
- Positive aspects:
+ Provides employees with an opportunity for social interaction and a
way to belong to a group.
+ Provides an outlet (chỗ giải tỏa) for stress, tension, and anxiety
+ Facilitates communication within the organization.
+ Provides information that managers may use in making decisions
+ Showcases future leaders (biggest pros)
- Negative aspects:
+ Creates conflicting loyalties (= conflict of interest)
+ Restricts productivity if the informal group does not value productivity
+ Creates rumors that lead to false information
+ Encourages resistance to management plans
+ Encourages complaints, poor-quality work, and absenteeism.
4. Grapevines
- The grapevine is an UNOFFICIAL WAY of relaying news, bypassing the
formal chain of command. The grapevine can exist both within a business or
among industries.
- Despite being regarded as gossip, it often conveys either personal or business
information.
- Pros: makes work less boring.
- Cons: contributes to spreading damaging rumors.
- Solutions: officially/publicly reveal the truth
- Smart managers use the grapevine to gather useful insights for decision-
making and feedback.
5. Office politics
- Definition: Office politics exist in virtually all organizations. They are the
activities performed by individuals to improve their status and advance their
personal agenda – sometimes at the expense of others.
- Although office politics is often seen as ruthless manipulation of other people
in an attempt to gain power, it has its good - or at least neutral - points:
+ Increases employees’ productivity
+ Offers better opportunities of promotion
- How to achieve office politics: through networking and mentorship
- Networking:
+ Definition: networking is the process of building and utilizing
connections to gain opportunities and information. It is based on the
natural preference to do business with people we know and like.
+ It helps people discover unadvertised jobs and stay informed about
industry trends.
+ Key elements of networking:
+ Visibility
+ Familiarity
+ Image
* How to create your own networks:
 Clarify the Purpose: Define whether the network is for
personal or business reasons.
 Assess Your Current Network: List your personal contacts
("ego network") and professional contacts ("positional
network"). Identify your resources like knowledge, skills, and
tools.
 Identify Missing Resources: Pinpoint the resources your
network lacks and seek them through relevant literature or
interviews.
 Distinguish Key Players: Identify influential individuals
(stars), isolated members, and intermediaries within your
network.
 Foster Collegial Relationships: Networking should be
enjoyable, focusing on open associations and information
exchange, different from structured corporate environments.
 Create a Knowledge Database: Develop a database, called a
"Guys-Who-Really-Know" (GWRK) file, to store useful
information.
 Take Action: Start small by focusing on sharing information,
assigning a leader, creating a newsletter, and maintaining
regular feedback from participants.
- Mentors: A mentor is an experienced employee who provides guidance, shares
knowledge of the business, and offers insight into office politics. Mentors are
typically not a person's direct boss, and mentor relationships are usually informal,
though some companies have formal mentorship programs.
6. Corporate culture
- Corporate culture refers to the informal climate or "feel" of an organization.
- It guides employees on how to approach problems and understand company
expectations.
- Elements of Corporate culture: values, heroes, routines, and communication
methods. For example, IBM promotes a humanistic, democratic culture that
values individual contributions, rewards performance, and avoids hierarchical
privileges like reserved parking.
- In a business context, the term “hero” has come into use to refer to a talented
person who, through a combination of knowledge, effort, and will, manages to
make a department, operation, or project just work.
- To understand a company’s culture, one can observe its physical setting,
slogans, employee behavior, and promotion patterns.
- Understanding corporate culture is essential for success, as it helps employees
navigate the organization more effectively and achieve results.
- A strong, well-defined culture contributes to a company's success

Scan the QR code below for our slideshow


REFERENCES

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[Link]

CFI Education Inc. (2023, October 15). Office politics. Corporate Finance Institute.
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Doan, D. (2024, October 7). The 5 phases of Project Management. HubSpot Blog.
[Link]

Durbin, B. (2016, November 23). matrix organization. Encyclopedia Britannica.


[Link]

Ellis, C. (2023, February 15). What are divisional organizational structures?. THE ORG.
[Link]

[Link], S. (2024, April 24). 50 innovation examples: Exciting innovative ideas in business.
Digital Leadership. [Link]
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Indeed. (2023, September 19). What is organisational change? (benefits, types and reasons) |
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organisational-change

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Stobierski, T. (2020, January 21). What is organizational change management? Harvard Business
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Vaughan, T. (2022, April 15). Functional organizational structure: Definition, Advantages &
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and-cons

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