Company organization structure

APPENDIX 1

Complete the text with the phrases from the box. Mind the use of proper prepositions with certain verbs and verb phrases.

Exercise 15. Duties of a Board of Directors

to the shareholders; for his own benefit; for the finances and legal requirements of the corporation; on behalf of the client; on the fiduciary; with the client to the trust's beneficiaries; at the expense; in regard to the client; in good faith; over personal interests; to a client

Corporate board members have a fiduciary responsibility to care (1) …………………….. They must act

(2) ……………. and with a reasonable degree of care, and they must not have any conflicts of interest. That is, the interests of the company must take precedence (3) …………………..of individual board members.

A fiduciary duty is an obligation to act in the best interest of another party. For instance, a corporation's board member has a fiduciary duty (4) …………, a trustee has a fiduciary duty (5) …………, and an attorney has a fiduciary duty (6) ………………...

A fiduciary obligation exists whenever the relationship (7) …………….. involves a special trust, confidence, and reliance (8) ………………….. to exercise his discretion or expertise in acting for the client.

When one person does agree to act for another in a fiduciary relationship, the law forbids the fiduciary from acting in any manner adverse or contrary to the interests of the client, or from acting (9) …………… in relation to the subject matter. The client is entitled to the best efforts of the fiduciary on his behalf and the fiduciary must exercise all of the skill, care and diligence at his disposal when acting (10) ……………. A person acting in a fiduciary capacity must follow a high standard of honesty and full disclosure (11) …………and must not obtain a personal benefit of the client.

Vocabulary reference Verbs of management: direct – руководить; plan – планировать; control – контролировать; arrange – устраивать; organize – организовывать; analyze - анализировать

Study the sample organization chart of a production company with 5 major and a number of subordinate departments.

This company is a corporation with share capital. The shareholders elect the Board of Directors.

The Board of Directors appoints the Managing Director (or, as in USA, CEO – Chief Executive Officer) and other key executives, directors. They employ managers who head other smaller departments

A senior executive such as Director or Manager is in charge of a department and directs the activity of the officers. A Director (Manager) plans and then controls the work, organizes effective teamwork, arranges meetings to discuss and analyze the results. Directors or managers make important decisions because they are responsible for the work of the department.

A company usually has a number of departments with definite functions, and some big departments have several subordinate departments (units, sections or groups). These units do part of the department job and report to the department Director.

		Research and Development (R&D) - new product development
		Factories - manufacturing
	Information Systems – information and data processing; computer programs maintenance

Vocabulary Reference: Russian equivalents of department and services titles:   Purchasing (Department) – отдел закупок HR - Human Resources – management (Department) – отдел управления кадрами IS - Information Systems - management (Department) – отдел управления информационными системами (также отдел может называться - Information Technologies – IT) Subordinate departments (units): R&D – research and development – отдел исследований и разработок Factories – производство; завод; цеха Accounting –бухгалтерия Tax Accounting – налоговое подразделение бухгалтерии; учет (и расчет) налогов Advertising - отдел рекламы Public Relations – отдел связи с общественными организациями и населением; PR - информация о деятельности и организация общественного мнения After-Sales (service) – отдел обслуживания после продажи Personnel Training – подразделение, занимающееся повышением квалификации персонала Legal Department – юридический отдел   In this company departments are headed by Directors, subordinate departments are headed by Managers.

2.

A) Department Functions

Every department deals with certain activities.

(Note: deal with smth– заниматься ч-л, иметь дело с ч-л)

Working with the chart and using information under each department title make up sentences:

The Production Department deals with the production process.

The Purchasing Department deals with purchasing materials and components.

……………………………….

B) Director’s responsibilities

Speak about each Director following the example:

The Production Director is in charge of the Production Department, which deals with production process. The Production Director directs the activity of the Purchasing, the R&D and the Factories department units.

The Production Director plans and controls the production process, organizes effective teamwork of all subordinate departments. The Director arranges meetings to discuss and analyze the problems of materials and components, new product development and manufacturing process.

The Finance Director …………….

The Marketing Director …………..

The Sales Director ……………..

The HR Director ……………..

The IS Director ……………….

С) The Legal Department is headed by the General Counsel or Chief Legal Officer.

The Legal Department staff (corporate counsels) deal with all legal matters and issues that are connected with the company operations/

Дата добавления: 2015-03-31