Business English (4)

zu Teil 3

Company structure

Company structure refers to how a company is organized and how its various departments, teams, and employees are interconnected. The structure of a company has a major impact on its efficiency, communication, decision-making processes, and overall success. There are several common types of company structures, including functional, divisional, matrix, and flat structures. Each type has its advantages and disadvantages, depending on the company´s size, industry, goals, and culture.

• Within a functional structure, people are grouped according to their job roles, such as marketing, finance, or IT. Those people become experts in their specific jobs. Different groups might, however, not talk to each other much.
• In a divisional structure, the company is organized based on products, markets, or regions, which is good for focus but can lead to much more effort.
• Matrix structure mixes functional and divisional structures where people report to both a function manager (e.g. marketing) and a project or production manager. This system encourages teamwork and flexibility but can also be confusing and result in conflicts about who is in charge.
• In a flat structure, there are only a few or no levels of middle management. This is good for quick decisions but it can be difficult to manage growth.

Hierarchies

In addition to the overall structure, companies also have hierarchies that define the levels of authority and responsibility within the organization. This can include top-level executives, middle managers, and frontline employees. Clear lines of communication and reporting are essential so that a company can function smoothly and effectively.

Roles and responsibilities

Roles are the specific tasks and responsibilities assigned to employees within the organization. Their responsibilities include the duties and obligations that they have in their roles. There are defined reporting relationships showing who reports to whom within the departments or divisions. Organizational charts show the roles and responsibilities of members of staff.

In bigger companies, you can find ‘departments’ and ‘divisions’. These terms refer to different levels and scopes of the organizational structure, each with unique roles. Departments are specialized units that focus on specific functions within the company. They are often interdependent and smaller in scope. Divisions, on the other hand, are broader, include multiple departments, and may operate semi-independently with their own strategic goals and resources. The finance division e.g. may have departments for accounting, administration, and asset management. Smaller companies don´t make this difference.

Some companies are broken down into separate business units, often based on products, projects or geography. A company may have separate units for consumer or industrial products, depending on its core competencies.

Who is at the top?

The top-level management, also known as C-level or C-suite management or executives are at the top of a company. This level is called C-level because employees’ job titles usually begin with the letter ‘C’, as in Chief Executive Officer (CEO), COO, CFO, CIO, CTO etc. They report to the board of directors and the founders and deal with the company’s strategic decisions.

The CEO heads up the company.  He is a member of the board and maybe chairman as well.

Below this level, depending on the company’s structure, there is the V-level management, consisting of Vice Presidents (VPs) and Senior Vice Presidents (SVPs) who report to C-level management.

D-level management are directors in various departments, e.g. Director of Sales. Next is the B-level management, the so-called mid-level managers, e.g. Sales Manager. Managers are responsible for departments, projects, and smaller units.

CEO or GM?

CEOs focus on the long-term growth and development of their organizations. They also oversee the general managers (GMs).

General managers have managerial duties, handle the day-to-day planning and supervision of their employees, and have some responsibilities regarding the companies’ long-term strategies.  

When you give an overview of your company, you might also talk about its history and background including its founding, major milestones, and evolution. The most important aspect will most likely be your products and services. What makes you unique and stand out from the crowd? Who are your competitors and if applicable, what is your competitive advantage? What is your target market with its primary customers and segments?

Last but not least, there is the so-called company or corporate culture, i.e. the shared values, attitudes, behaviours and standards that make up your work environment and go beyond profitability. A strong organizational or team culture can attract and retain qualified staff as it can create a positive working atmosphere and promote employee engagement.

Have you ever wondered where certain company names come from? In the past, companies were typically named after their founders, like for example Ford, Prada or McDonald´s. Others chose a combination of their nickname and last name (Adidas) or combined the first letters of their first names (ABBA).  Today company founders must be more creative to come up with unique and memorable names that resonate with their target group and are also easy to spell and pronounce. ‘BackRub’ was Google‘s original name and today it is even used as a verb, which made it a perfect choice.

So much for today. Let´s all keep our fingers crossed for our German national soccer team in the weeks to come. Discussing soccer games can be a great starter for some small talk in English. So, be prepared and stay tuned!