Company organisation, types of companies, job description

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Company organisation

Companies can be made up of three key groups of people - shareholders, who provide the capital and own the company, the management and the workforce. In large corporations, operations are split into divisions or departments, which are overseen by a board of directors.

In a traditional hierarchical company, the board of directors typically provides strategic direction. The board consists mainly of non-executive directors who represent the interest of the shareholders. The board is headed by the Chairperson (UK)/ President (US) and is responsible for policy decisions and strategies. It will usually appoint a Managing Director (UK)/ Chief Executive Officer (US) who has an overall responsibility for the running of the business. Senior/ Line managers or company officers head the various departments within the company, for example Finance, Legal Affairs, Human Resource (HR), or Public Relations (PR).

Sample image. Source: https://www.needpix.com/photo/download/1656496/organization-chart-executive-staff-hierarchy-work-operation-company-business-control

Every organisation has its own organisational structure. An organisational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organisation. These activities can include rules, roles, and responsibilities. A successful organisational structure defines each employee's job and how it fits within the overall system. Put simply, the organisational structure lays out what duties each person has so the company can meet its objectives. Having an organisational structure in place allows companies to remain efficient and focused. The organisational structure also determines how information flows between levels within the company. For example, in a centralised structure, decisions flow from the top down, while in a decentralised structure, decision-making power is distributed among various levels of the organisation.

Traditionally, organisations have been structured with centralised leadership and a well-defined chain of command, with very clear responsibilities for each role, and a clear distinction between subordinates and superiors. However, there has been a rise in decentralised organisations, as is the case with many technology startups. This allows companies to remain fast, agile, and adaptable, with almost every employee receiving a high level of engagement.

Large companies can have over 200 business units and brands that function in sometimes very different industries and they often operate autonomously. Even in decentralised companies, there are still usually built-in hierarchies, such as the chief operating officer operating at a higher level than an entry-level associate. However, teams are empowered to make their own decisions and come to the best conclusion without necessarily getting "approval" from higher up in the organisation.

Types of companies

A company is a legal entity formed by an individual or a group of individuals to engage in and run a business enterprise. There are many different types of companies (UK) / corporations (US), which can be classified for example according to their size, forms of business, the sector – private or public, or whether they are profit-making or non-profit-making. Regarding the size, there are three main categories, and they share some common characteristics irrespective of their field.

The three main types of business size classifications are small and mid-size enterprises (SMEs), and large enterprises. Small and medium-sized enterprises represent 99% of all businesses in the EU. The definition of an SME is important for access to finance and EU support programmes targeted specifically at these enterprises. The main factors determining whether an enterprise is an SME are: staff headcount and either turnover or balance sheet total. Small enterprises have fewer than 50 employees and the annual turnover less than 10 million euros. For mid-size enterprises the figures are fewer than 250 employees and the annual turnover less than 50 million euros. These ceilings apply to the figures for individual firms only. A firm that is part of a larger group may need to include staff headcount/turnover/balance sheet data from that group too.

The most common forms of business are sole traders (UK)/ sole proprietorships (US), partnerships, and corporations. A sole trader is the easiest way of establishing and dismantling a business due to minimal government regulation. It is run by one business owner who has all the decision-making power in the company, but also all the liability and who pays personal income tax on profits earned from the business. In addition, any business-related expenses will come directly out of their personal finances, since personal and business finances will be intermingled.

A partnership is a formal arrangement in which two or more parties manage and operate a business and share its profits. There are several types of partnership arrangements, e.g. general partnership, limited partnership or limited liability partnership. In a general partnership, all partners share liabilities and profits equally, while in others, partners can have limited liability. Professionals like doctors, architects, and lawyers often form a limited liability partnership. This arrangement limits partners' personal liability so that, for example, if one partner is sued for malpractice, the assets of other partners are not at risk. Limited partnerships are a hybrid of general partnerships and limited liability partnerships. At least one partner must be a general partner, with full personal liability for the partnership's debts. At least one other is a sleeping partner (UK)/ silent partner (US) whose liability is limited to the amount invested. This sleeping partner generally does not participate in the management or day-to-day operation of the partnership.

A corporation is a legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They are, however, more complex and costly than most other business structures. An important element of a corporation is limited liability, which means that its shareholders are not personally responsible for the company's debts. The vast majority of corporations have a goal of generating profit for their shareholders. However, some corporations, such as charities, are non-profit-making.

Limited company structures are codified in many nations, though the regulations governing them can differ widely from one nation to the next. For example, in the United Kingdom, there are two types of limited liability companies - private limited (Ltd.) and public limited companies (PLC).

Private limited companies are not permitted to offer shares to the public. They are, however, the most popular structures for a small business. Public limited companies may offer shares to the public to raise capital. When a company goes public, this is known as flotation or Initial Public Offering (IPO).

When a business wants to increase its market share or geographical reach at a low cost, it may franchise its product and brand name. A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark.

Job description – examples

A job description is a statement that outlines the specifics of a particular job or position with a company. It goes into detail about the responsibilities and conditions of the job.

Joe works in advertising and is in charge of creating marketing communication that persuades the target audience to purchase a product or service. He loves his work as it can be rewarding and stimulating. He needs to demonstrate originality and creativity as lots of new ideas must be produced. In-depth understanding of common marketing and advertising best practices is essential as well. No two days are the same, so Joe needs to be versatile. His work may range from contacting companies for a new advertising campaign to giving client presentations, so effective communication skills are required. Joe has hands-on experience with the productive work of the agency. Teamwork is essential in this industry, so strong rapport among colleagues is highly valued.

Amanda is a researcher and works in research and development (R&D), which involves putting ideas into practice. She often works with a team of other researchers and committees to plan research objectives and test parameters. She identifies research methods, variables, data collection techniques and analysis methods. She interprets the data, produces reports discussing research findings and provides recommendations at the end of the project. To be successful she must prove exceptional problem-solving and investigative skills. Her work might be very exciting and the sense of achievement astonishing.

Tom is a sales representative, which can be very stressful as well as demanding. He needs to meet sales targets every month. However, he enjoys a great amount of flexibility as he organises his working time himself and does not have to commute to work every day. He is provided with perks such as a company car, a cell phone and a computer. When he is not seeing clients, he can work from home. He usually works long hours – about 60 hours a week but he says that advantages outweigh disadvantages. Tom's job is commission based. He receives a basic salary and a commission, which depends on how much he sells. Thus, he is highly motivated to perform well and improve his sales performance.

Lea works as a secretary, also known as a personal assistant (PA) or administrative assistant. She is responsible for performing administrative tasks in the office. To be successful as a secretary, she must be able to multitask. Her work includes for example typing, formatting, and editing reports, documents, and presentations, entering data, maintaining databases, and keeping records. Lea is responsible for answering phone calls, responding to emails, scheduling appointments, liaising with internal departments and making travel arrangements. Her duties might also entail organising events and arranging refreshments, if required. Copying, scanning documents as well as taking notes during meetings are secretarial responsibilities. Lea must often exhibit excellent interpersonal and organisational skills and work autonomously to provide customised administrative support.

Glossary

  • Seznam použitých symbolů a zkratek
    uvozuje slovo nebo frázi se stejným nebo podobným významem (synonymum)
    📖 uvozuje slovo nebo frázi s opačným významem (antonymum), případně podobně znějící výraz s odlišným významem
    [ ] obsahuje přepis výslovnosti
    ( ) obsahuje vysvětlení (například zkratky nebo zpřesnění významu), doplnění nebo část výrazu či slova, která může být v závislosti na kontextu vynechána
    i upozorňuje na nepravidelné (irregular) sloveso vyšší než mírně pokročilé úrovně a tím zároveň odkazuje na seznam těchto nepravidelných sloves na konci glosáře
    / zkracuje dvě (nebo i více) stejné syntaktické konstrukce do jediné (například „dosáhnout/docílit čeho“ místo „dosáhnout čeho, docílit čeho“)
    adj přídavné jméno (adjective)
    AmE výraz z americké angličtiny (American English)
    BrE výraz z britské angličtiny (British English)
    C počitatelné podstatné jméno (countable)
    n podstatné jméno (noun)
    pl množné číslo (plural)
    sb zájmeno někdo, uváděné po předložkách a/nebo slovesných vazbách (somebody)
    sg jednotné číslo (singular)
    sth zájmeno něco, uváděné po předložkách a/nebo slovesných vazbách (something)
    U nepočitatelné podstatné jméno (uncountable)
  • Glossary
    academia ‹n›                         
    [ækəˈdiːmiə]
    akademická obec
    adaptable ‹adj› přizpůsobivý
    advertising ‹n› inzerce
    accountant               účetní
    agency agentura
    agile ‹adj› svižný, hbitý
    to appoint sb jmenovat koho
    approval of sth ‹n› schválení čeho, souhlas
    to assess  posoudit, ohodnotit
    assets ‹n; pl› aktiva(jmění podniku) 
    associate ‹n› kolega
    autonomously ‹adv› samostatně
    balance sheet účetní rozvaha
    board of directors představenstvo 
    boilerplate ‹n› standardní text
    built-in ‹adj› zabudovaný
    chain of command schéma velení, řízení
    Chairperson ‹BrE›)
    (→ President ‹AmE›)
    předseda
    to charge sth účtovat co
    charity charita
    to classify třídit, klasifikovat
    commission provize
    to comprise sth zahrnout co
    to commute dojíždět do práce
    to conduct sth provádět, řídit co
    contract ‹n› smlouva
    copy ‹n› (zde) text inzerátu 
    corporation ‹n› společnost, korporace
    costly ‹adj› nákladný
    credit ‹n› úvěr
    to customize sth přizpůsobit co 
    debtor         
    [ˈdetər]               
    dlužník
    demanding ‹adj› náročný
    to demonstrate sth předvést, ukázat co
    department  oddělení
    to determine vymezit, určit
    to direct sb vést koho
    to dismantle  zrušit, rozebrat
    duty ‹n› úkol. povinnost
    effective ‹adj› účinný
    to empower sb, sth zmocnit, oprávnit koho, co
    engagement ‹n› zapojení
    to entail sth zahrnovat co
    enterprise ‹n› podnik 
    to establish založit
    exceptional ‹adj› výjimečný
    to exhibit dát najevo, projevit
    expert ‹n› specialista, expert
    flexibility přizpůsobivost
    flotation 
    → Initial Public Offering (IPO)
    flotace, primární emise akcií 
    to format dát do formátu
    fundamental ‹adj› základní
    franchise ‹n› franšíza, licence
    franchisee ‹n› příjemce licence
    franchisor/ franchiser prodejce licence
    to grant sb sth udělit, poskytnout komu co 
    guidance ‹n› vedení, řízení
    to handle sth zabývat se čím
    hands-on ‹adj› praktický, aktivní
    to head sb být vůdcem, velet komu
    headcount ‹n› počet osob
    Human Resources (HR) personální oddělení
    in charge of sth/ sb být zodpovědný za co/ koho
    to incorporate sth zahrnout co
    in-depth ‹adj› podrobný, důkladný
    industry obor, odvětví, průmysl
    to intermingle promísit se 
    interpersonal mezilidský
    investigative ‹adj› vyšetřovací
    joint venture společný podnik
    to land somewhere skončit kde (hov.)
    to lay out navrhnout, projektovat 
    leadership ‹n› schopnost vést lidi
    Legal Affairs právní oddělení
    legal entity právnická osoba
    liability (právní) odpovědnost
    liable ‹adj› zodpovědný, ručící
    to liaise with sb úzce spolupracovat
    limited liability omezené ručení
    limited partnership společnost s ručením omezeným
    line manager  přímý nadřízený
    litigation ‹n› soudní spor
    loan ‹n› půjčka
    long hours  dlouhá pracovní doba
    malpractice ‹n› zneužití úřední moci, nedbalost
    Managing Director (MD)‹ BrE›
    (→ Chief Executive Officer (CEO) ‹AmE›)
    generální ředitel 
    to mimic sb napodobovat koho
    to multitask  zvládat víc úkolů zároveň
    non-executive ‹adj› bez výkonné pravomoci
    novel ‹adj› nový
    objective
    (→goal → aim) 
    cíl
    to operate působit, fungovat, provozovat
    to outline sth nastínit co
    to outperform sb překonat koho
    to outweigh sth předčit co
    partnership  partnerství, partnerská spolupráce
    perks ‹n, pl.› zaměstnanecké benefity
    policy ‹n› strategie (koncepce), politika 
    private limited company britská právní forma podnikání odpovídající společnosti s ručením omezeným
    public limited company  britská právní forma podnikání odpovídající akciové společnosti
    Public Relations (PR) oddělení vztahů s veřejností
    to range  být v rozmezí, pohybovat se mezi
    rank ‹n› pořadí
    rapport ‹n›                                 
    [ˌræpˈɔːr]                          
    vzájemné porozumění, dobrý vztah
    reducible ‹adj›                    
    [ˌrɪˈdʒuː.sə.bəl]
    zjednodušitelný, redukovatelný
    Research and Development (R&D) oddělení výzkumu a vývoje
    rewarding ‹adj› uspokojující, naplňující
    rule ‹n› pravidlo
    senior manager vyšší manažer
    sense of achievement pocit úspěchu
    severely ‹adv› těžce, vážně
    share ‹BrE›
    (→ stock ‹AmE›)
    akcie
    shareholder  akcionář 
    to shrink zmenšit se
    silent partner
    (→sleeping partner)
    tichý společník
    sole trader ‹ BrE›
    (→ sole proprietorship ‹AmE›)
    osoba samostatně výdělečně činná (právní forma podnikání i osoba takto podnikající)  
    stimulating ‹adj› stimulující, podnětný
    to stipulate stanovit, určit
    subordinate ‹adj› ‹n› podřízený
    superior ‹adj› ‹n› nadřízený
    to tackle řešit
    target audience cílová skupina, cílové publikum
    tax ‹n› daň
    turnover ‹n› obrat
    unit ‹n› jednotka
    venture riskantní podnik
    versatile ‹adj› všestranný
    workforce pracovní síla

Definitions

  • Company organisation
    Adaptableable or willing to change in order to suit different conditions
    Agileable to deal with new situations or changes quickly and successfully
    Appointto choose someone officially for a job, responsibility
    Approvalofficial permission
    Associatean associate is  a person who has a position in a job or type of work that is just below the top position
    Autonomouslyindependent and having the power to make your own decisions
    Board of directorsthe governing body of a company, elected by shareholders
    Built-inincluded, made, or designed as part of something
    Centralised structurewhere business decisions are made at the top of the business or in a head office and distributed down the chain of command
    Chain of commanda system in an organisation by which instructions are passed from one person to another
    Chairperson/ Presidenta person in charge of a meeting, organisation
    Decentralised structurewhere a business allows decisions to be made by managers and subordinates further down the chain
    Determineto decide what will happen
    Directto tell the people the direction in which they must drive
    Division/ departmenta part of a company that deals with a particular area
    Empowerto give someone official authority or the freedom to do something
    Engagementthe act of being involved with something
    Financethe management of money
    Headto be in charge of an organisation, group, etc.
    Hierarchicalarranged according to people’s level of importance
    Human Resources (HR)the department within an organisation responsible for managing its employees
    Lay outto explain something clearly, usually in writing
    Leadershipthe set of characteristics that make a good leader
    Legal affairsthe department providing legal counsel to the Board and to its other departments
    Line managerthe person who is directly responsible for managing the work of someone else in a company or business, and who is one level above that person
    Managementthe group of people responsible for controlling and organising a company
    Managing Director/ Chief Executive Officera person in charge of a company
    Non-executivesomeone who has a non-executive position in a company or organisation gives advice but is not responsible for making decisions or ensuring that decisions are carried out
    Objective/ goalsomething that you plan to do or achieve
    Operateto (cause to) work, be in action or have an effect
    Outlineto give the main facts about something
    Policya set of ideas or a plan of what to do in particular situations that has been agreed by a business organisation, a government 
    Public Relations (PR)refers to managing how others see and feel about a company
    Responsibilitya duty to take care of something
    Rolethe position or purpose that someone or something has in a situation, organisation, society, or relationship
    Rulean accepted instruction that states the way things should be done
    Senior Managersmanagers at the highest level of a company or organisation responsible for strategizing the department's direction and planning their department's goals
    Shareholderany person, company, or institution that owns shares in a company’s stock
    Subordinatea person with  a lower or less important position
    Superiora person higher in rank or social position than others
    Unita group of people working together, especially for a particular purpose
    Workforcethe group of people who work in a company
  • Types of companies
    Assetssomething valuable belonging to a person or organisation that can be used for the payment of debts
    Balance sheeta statement of the assets, liabilities, and capital of a business or other organisation at a particular point in time
    Charityan organisation whose purpose is to give money, food, or help to those who need it
    Classifyto divide things or people into groups according to their type
    Corporationa large company or group of companies authorised to act as a single entity and recognized as such in law
    Costlyexpensive
    Dismantleto get rid of a system or organisation, usually over a period of time
    Distinctclearly noticeable; that certainly exists
    Enterprisea business or company
    Establishto start a company or organisation that will continue for a long time
    Flotation/ initial public offeringan occasion when a company's shares are sold to the public for the first time
    Franchisean arrangement in which a company sells another business the right to sell its products or services in return for payment
    Franchisee a business that has bought the right to sell the products and services of another company
    Franchisor/ franchisera person or a company that sells the right to open stores and sell products or services using its brand, expertise, and intellectual property
    General partnershipa business made up of two or more partners, each obligated for the business's debts, liabilities, and assets
    Headcounta total number of people employed in a particular organisation
    Income taxa tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them
    Intermingleto become mixed together
    Joint venturea business entity created by two or more parties, generally characterised by shared ownership, shared returns and risks
    Large enterprisesentities that employs a great number of people and has a sizable annual revenue
    Legal entityan individual, company, or organisation that has legal rights and obligations
    Liabilitythe fact that someone is legally responsible for something
    Limited liabilitythe condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares
    Limited partnershipa business entity with at least one general partner, who has unlimited personal liability, and one limited partner, whose liability is limited to their investment in the company
    Limited liability partnershipa partnership in which some or all partners (depending on the jurisdiction) have limited liabilities
    Malpracticeimproper, illegal, or negligent professional behaviour
    Non-profit organisationa group organised for purposes other than generating profit
    Partnershipa legal arrangement that allows two or more people to share responsibility for a business
    Private limited companya type of company whose shares are not traded on a stock market and may only be sold if other shareholders agree
    Private sectorthe part of the national economy that is not under direct state control
    Profit organisationan entity whose primary goal is to earn income
    Public limited companya business that has opened its shares up to the public
    Public sectorthe part of an economy that is controlled by the state
    Regulationan official rule or the act of controlling something
    Silent/ sleeping partneran investor who becomes a member of a partnership by virtue of capital contribution, but plays an inactive role in daily operations and management of the business
    Small and mid-size enterprisesbusinesses that maintain revenues, assets or a number of employees below a certain threshold; each country has its own definition
    Sole trader/sole proprietorshipa person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses
    Turnoverthe amount of money that a company gets from sales during a particular period
  • Job description
    Advertisingthe business of trying to persuade people to buy products or services
    Agencya business or organisation providing a particular service on behalf of another business, person, or group
    Commisiona payment given to someone when they sell something, whcih is directly related to the amount they sell
    Commutetravel some distance between one's home and place of work on a regular basis
    Customisedmodified to suit a particular individual or task
    Demandingrequiring much skill or effort
    Demonstrategive a practical exhibition and explanation of a skill
    Dutya task or action that one is required to perform as part of one's job
    Editto make changes to a text
    Effectivesuccessful in producing a desired or intended result
    Entailinvolve (something) as a necessary or inevitable part
    Exceptionalunusual; not typical
    Exhibitmanifest clearly a quality or a type of behaviour
    Flexibilitywillingness to change or compromise
    Formatplan or arrange in a specified form
    Hands-oninvolving or offering active participation rather than theory
    In charge ofin control or with overall responsibility
    In-depthcomprehensive and thorough
    Interpersonalrelating to relationships or communication between people
    Investigativeinvolving examining facts, events, problems, etc.
    Keep recordsorganise and store all the documents, files, invoices for future reference
    Liaisecooperate on a matter of mutual concern
    Long hoursa period of time doing something, especially work, that is longer than is usual
    Multitaskdeal with more than one task at the same time
    Outweighto have more influence or importance than something else
    Perkssomething extra an employee gets in addition to their salary
    Personal assistant/ administrative assistanta person who does office work and works exclusively for one particular person
    Rangevary or extend between specified limits
    Rapportagreement or sympathy between people or groups
    Research and developmentthe department directed towards the innovation, introduction, and improvement of products and processes
    Rewardingproviding satisfaction; gratifying
    Sense of achievementsomething accomplished, especially by superior ability, special effort, great courage, etc.
    Stimulatingencouraging or arousing interest or enthusiasm
    Target audiencea particular group at which a product is aimed
    Versatileable to adapt or be adapted to many different functions or activities
  • Listening and video
    Academiathe environment or community concerned with the pursuit of research, education, and scholarship
    Accountantsomeone who keeps or examine the records of money received, paid and owed by a company or a person
    Assessevaluate or estimate
    Assetsanything that has current or future economic value to a business
    Bodily formpresent in a physical body
    Boilerplatestandardised text, documents, that can be reused in new contexts or applications without significant changes to the original
    Chargedemand (an amount) as a price for a service
    Compriseconsist of; be made up of
    Conductorganise and carry out
    Contracta written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law
    Copythe text of an advertisement
    Creditthe ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future
    Debtora person, country, or organisation that owes money
    Experta person who is very knowledgeable about or skilful in a particular area
    Fundamentalbasic, essential
    Grantagree to give or allow (something requested) to
    Handlemanage (a situation or problem)
    Incorporatetake in or contain (something) as part of a whole; include
    Industrya group of productive enterprises or organisations that produce or supply goods, services, or sources of income
    Landto arrive in an unpleasant situation or place  
    Liableresponsible by law
    Litigationthe process of taking legal action
    Loana borrowed sum of money that is expected to be paid back with interest
    Mimicimitate someone or their actions or words
    Novelnew and not resembling something formerly known or used
    Outperformto accomplish something in a better or more impressive way than someone else
    Rankgive (someone or something) a place within a grading system
    Reduciblecapable of being simplified
    Severelyto an undesirably great or intense degree
    Shareone of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits
    Shareholderowner of part of a  company
    Shrinkbecome or make smaller in size or amount
    Stipulatedemand or specify (a requirement), typically as part of an agreement
    Suspiciouslyin a way that makes you think someone is guilty of something wrong or illegal
    Tackleto try to deal with something or someone
    Taxa mandatory payment or charge collected by local, state, and national governments to cover the costs of general government services, goods, and activities
    Venturea business enterprise in which something is risked in the hope of profit