LINE AND STAFF POSITIONS
In business, organization structure means the relationship between positions and people who hold the positions. Organization structure is very important because it provides an efficient work system as well as a system of communication.
Historically, line structure is the oldest type of organization structure. The main idea of it is direct vertical relationships between the positions and tasks of each level, and the positions and tasks above and bellow each level. For example, a sales manager may be in a line position between a vice-president of marketing and a salesman. Thus a vice president of marketing has direct authority over a sales manager. A sales manager in his turn has direct authority over a salesman. This chain of command simplifies the problems of giving and taking orders.
When a business grows in size and becomes more complex, there is a need for specialists. In such case administrators may organize staff departments and add staff specialists to do specific work. These people are usually busy with services, they are not tied in with the company product. The activities of the staff departments include an accounting, personnel, credit and advertising. Generally they do not give orders to other departments.
to hold a position- занимать должность
organization structure- организационная структура
sales manager- управляющий по торговле
salesman- продавец, торговец,
to have direct authority- иметь прямую властьнад
over smb. кем-либо
to give orders- отдавать приказы
to take orders- принимать приказы
a line department- линейный отдел (имеющий
staff department- штабной отдел (не имеющий
to be tied in the company- иметь отношение
1. What does the organization structure mean?
2. What does the organization structure provide?
3. What is historically the oldest type of organization
4. In what position is a salesmanager in attitude to a vice-
5. What is the difference between line and staff
considered staff structure rather than line structure?
Choose the necessary word and put it in the sentence.
1. Organization structure shows... I
between each position and positions I
above and below. I 1 relationships
2. A sales manager has direct... I
over a salesman. I 2 to hold a position
3. As a rule a... usually does not give I
orders to other departments. I 3 authority
4. When the business gets more ... I
there is a need for staff departments. I 4 complex
5. My friend ... ... of sales manager. I
6. The ... of staff departments is to do I
different services. I 6 a line department I
7. My friend works in a ... .... he is I 7 a staff
responsible for the company product. I department
Peggy Forman is talking with Jaff Downing, another administrative assistant in her company.
Jaff How are you today, Peggy?
Peggy Oh, fine, thanks.
Jaff Glad to hear that. By the way, are yon familiar with
the organizational chart for the company?
devided into groups. It gives one an overview of the
chain of command in the company.
do you know about it?
Peggy As far as I know a worker in a line position receives
orders from his immediate subordinate.
Jaff Exactly, that's the line chain of command.
Peggy A worker in a staff position reports directly to a line
worker but he neither gives nor receives orders for
line workers. Am I right?
Jaff Yes, you are. But someone may have tine authority over people in his department and not be considered a line administrator.
Peggy How can it be?
Jaff That's possible when a whole department is a staff
Peggy And what do the people in staff departments do, how is their work different?
Jaff Well, they are usually busy with services and they
could do the same service for any company.
So they are not in the line.
Peggy It seems to be rather complicated.
Jaff It only seems so. I think the chart should help.
Peggy Oh, sure. But, Jaff, would you explain me what
span of control is?
Jaff Oh, span of control refers to the number of people
whom one managers directly.
Peggy Can you give me an example?
Jaff Well. The President of our company directly
managers the Vice President of Production,
the Vice President of Marketing and the
Comptroller. Thus, his span of control includes
Peggy Yes, now I see. Thank you for your help.
Jaff Not t all. Why don't we go to the coffee stall
and have a snack together?
organizational chart – организационная схема
line position – линейная должность
staff position – штабная должность
immediate superior – непосредственный
immediate subordinate – непосредственный
line chain of command – линейная структура
to report - зд. сообщить
credit department – кредитный отдел
span of control – сфера непосредственного
Vice-president of production - вице-президент по
vice-president of marketing – вице-президент по сбыту
comptroller - главный финансист
Exercise 1. Give affirmative and negative answers to the questions.
M o d e l: Have you examined the organizational structure of the company yet?
Yes, I have already examined it. No, I haven’t examined it yet.
1. Have you reported to the comptroller yet?
2. Have you settled this problem with the manager yet?
3. Have you learned line and staff positions of the company yet?
4. Have, you got acquainted with your immediate superior
5.Have you heard about his spanof control yet?
6. Have you met your immediate subordinates yet?
7. Have you passed your report to the credit department yet?
Exercise 2. Change the sentences according to the model
Model: A staff employee doesn't give orders.
A staff employee doesn't receive orders.
A staff employee neither gives, nor receives orders.
1. He isn't a Comptroller. He isn't a sales manager.
2. The head of the credit department doesn't advise the President. The head of the credit department doesn't report to
3. He doesn't want to hold a position of vice-president of
4. A credit department doesn't have direct authority over a line department. A personnel department doesn't have direct authority over a line department.
5. I don’t want to talk with the Boss. I don’t want to talk with the Controller.
6. She doesn’t like to give orders. She doesn’t like to receive orders.
7. Jecky doesn’t want to attend annual meeting of shareholders. Susan doesn’t want to attend annual meeting of shareholders too.
Exercise 3. Answer the questions.
1. What is your relationship with your immediate superior?
2. What position in your company do you want to hold?
3. Do you want to be a sales-manager or a vice president of marketing? Give your reasons.
4. Over what positions do you have direct authority in your company?
5. What do you like more: to give orders or to receive orders?
6. Do you want to work in a staff department or in a line department? Give your reasons.
Exercise 4. Have a look at the organizational chart of the company.
What line and staff positions can you discern? Speak about the organizational structure of this enterprise.
Exercise 5. Translate into English.
1. Мои взаимоотношения с начальником очень хорошие.
2. Мой друг занимает должность главного финансиста.
3. Я не знаком с организационной структурой нашего предприятия.
4. Он больше любит отдавать приказания, чем получать их.
5. Я предпочитаю работать в линейном отделе.
6. Штабные отделы не связаны с конечным продуктом.
7. Структура нашего предприятия сложна.
8. Я больше подхожу к штабной должности, чем к линейной.
9. Мой непосредственный начальник очень пунктуален.
10. B сферу моего непосредственного подчинения входят три руководителя групп.
11. Главный финансист имеет очень большую ответственность.
12. Я уволю моего непосредственного подчиненного. Он
Exercise 1 Transfer the sentences from Active into Passive.
Model: The manager examines organizational structure of
the firm. Organizational structure of the firm
is examined by the manager.
1. Vice-president gives orders to his employees.
2. I receive orders from the sales-manager.
3. My friend holds a position of general manager.
4. Personnel office receives resumes from prospective
5. Staff departments do different services to line
6. He takes the orders and fulfils the task very quickly
Model: My friend is examining the organizational chart. The organizational chart is being examined by my friend.
1. I am sending my annual report to my immediate superior.
2. The foreman is firing his immediate subordinate.
3. Comptroller is giving the orders to his employees.
4. We are changing the organizational structure of our
5. The board of directors is enlarging the staff of the
Model: I have invested my money in real estate.
My money has been invested in real estate.
1. We have considered advantages and disadvantages of partnership.
2. 1 have bought the shares of IBM company.
3. This business has involved big financial resources.
4. We have elected the board of directors.
5. The board of directors have chosen the company officers.
Accounting shows a financial picture of the firm. An accounting department records and measures the activity of a business. It reports on the effects of the transactions on the firms financial condition. Accounting records give a very Important data. It is used by management, stockholders, creditors, independent analysts, banks and government.
Most businesses prepare regularly the two types of records. That is the income statement and balance sheet. These statements show how money was received and spent by the company.
One major tool for the analysis of accounting records is ratio analysis. A ratio analysis is the relationship of two figures. In finance we operate with three main categories of ratios. One ratio deals with profitability, for example, the Return on Investment Ratio. It is used as a measure of a firms орегаting efficiency.
The second set of ratios deals with assets and liabilities. It helps a company to evaluate its current financial position. The third set of ratios deals with the overall financial structure of the company. It analyses the value of the ownership of the firm.
accounting- бухгалтерский учет
record- документ, запись, протокол
to record- записывать, регистрировать
to measure- измерять
transaction сделка, банковская операция
firm’s financial condition- финансовое положение фирмы
to provide data- обеспечивать данными
income statement- отчет о доходах
balance sheet- балансовый отчет
to receive- получать
to spend- тратить
ratio analysis- анализ коэффициентов
Return on Investment Ratio- коэффициент возвращения инвестиций
efficiency- эффективность, производительность
to evaluate- оценивать
value- ценность, стоимость
overall financial structure- полная финансовая структура
1. What is the purpose of accounting?
2. Who uses the data provided by accounting firms?
3. What are the two types of records which most businesses prepare?
4. What can you know analyzing the income statement and balance sheet of a company?
5. What is the purpose of the ratio analysis?
6. What categories of ratios in finance do you know?
Exercise 1. Choose the necessary word and put it in sentence.
1. An accounting helps… the activity I
of a business. I 1 to profit
2. do you know the effect of your last… I
of financial condition of the firm? I 2 profit
3. Accounting records provide … for I
stock-holders, independent analysts. I 3 efficiency
4. The second type of ratio helps the I
company … its current financial position. I 4 ownership
5. … is one the two main records which I
most of the businesses prepare regularly. I 5 to evaluate
6. The... of the company includes real I
estate in California. I 6 transaction
7.I am sure of the... of this transaction. I 7 data
8. Our company's current... is very high. I 8 income
9. They... from the association with that I statement
corporation. I 9 to measure
(Peter and Karen work in a large company. They are having dinner in the company cafe).
Peter Hi, Karen. Glad to meet you. You looked very busy this morning. There were so many statements on your table.
Karen Oh, Peter. This is the end of the year. The accounting department is very busy.
Peter I know. We are all very busy, totaling accounts. But I've already turned in the report on my department.
Peter So, how's business.
Karen I don't know everything. I am busy with some records and statements. I don't have the whole picture. But I think the company is doing very well.
Peter I am sure of it. We have to keep our creditors and investors happy.
Karen Well, the balance sheet and profit and loss statement are ready. It is the end of the fiscal year. So everybody can check out the assets and liabilities, net worth and profit position of the company in the financial statements.
Peter Do you work with the pay checks?
Karen Why are you asking?
Peter I thought you could explain me the big difference between my gross pay and my net take-home pay.
Karen The explanation takes only one word-taxes. Actually the salaries are done through the computer.
Karen Sure, We can’t handle any volume in a large company without computers.
Peter You are right. Thank you for very interesting information.
Karen Oh, its my pleasure. Let’ s go to get some dessert.
accounting department- бухгалтерский отдел
to total accounts- суммировать счета
to turn in the report- сдать отчет
profit and loss statement- отчет по прибыли и убыткам
assets and liabilities- актив и пассив
net worth- а) стоимость имущества за вычетом обязательств б) собственный капитал предприятия
a financial statement- финансовый отчет
a pay check- платежный чек
gross- валовой, брутто
gross pay- плата с вычетами
net- чистый, нетто
net pay- плата без вычетов
fiscal year- фискальный (бюджетный) год
Exercise 1 Havea look at the structure.
Can you turn in the report in time?
No, I cant turn in the report but I could when I worked in the other department.
1. Can they check the assets and liabilities?
2. Can you keep the investors and creditors happy?
3. Can you explain the difference between gross pay and net take-home pay?
4. Can he compute the taxes?
5. Can we prepare profit and loss statement?
6. Can the company pay the salaries in time?
7. Can I operate the computer?
Exercise 2. Imagine that you work as an accountant in a big enterprise.
Answer the following questions.
1. Do you total the accounts at the end of the fiscal year?
2. What are your usual activities at the end of the fiscal year?
3. When do you prepare a financial statement?
4. Why should you have more assets then liabilities?
5. Does the accounting department work on taxes?
6. What is the difference between your gross salary and net salary?
7. Is the difference between gross salary and net salary big in this country? What does this difference depend on?
Exercise 3. Make up the dialogue about accounting:
a) between an experienced accountant and a university graduate who has just begun to work as an accountant;
b) you are an employer and you want to hire an accountant, .find out if he (she) is experienced enough in accounting.
Exercise 4. Translate from Russian into English.
1. Бухгалтерский учет представляет данные для кредиторов и вкладчиков. 2. Они готовят отчет о доходах и балансовый отчет в конце финансового года. 3. Мы определяем эффективность производства с помощью анализа коэффициентов. 4. Недвижимость является собственностью корпораций. 5. Мы проверим актив и пассив и определим стоимость имущества за вычетом обязательств. 6. Мы платим большие налоги. 7. Сколько ты получаешь без вычетов?
Grammar Exercises Exercise 1. Make the sentences negative.
Model: I worked as an accountant in a big corporation.
I didn't work as an accountant in a big corporation.
1. An accounting department reported on the effects of the transactions.
2. They studied carefully income statement and balance sheet.
3. We used ratio analysis to determine the firms operating efficiency.
4. The accountants checked the assets and liabilities.
5. The accounting department provided data for the management.
Exercise 2. Put up for questions of different types to each sentence (general, special, disjunctive, alternative).
Model: The accounting department regularly prepared the income statement and balance sheet.
1. Did the accounting department regularly
prepare the income statement and balance sheet?
2. What did the accounting department regularly
3. The accounting department regularly prepared the income statement and balance sheet, didn’t it?
4. Did the accounting department prepare the income statement or a financial statement?
1. The board of directors checked out assets, liabilities and
2. He worked as a Comptroller of the company for two years.
3. The applicants sent their resumes and letters of interest.
4. She used to do books in a big company.
5. Some governmental corporations issued stock certificate.
Corporations need financing for the purchase of assets and the payment of expenses. The corporations can issue shares in exchange for money or property. Sometimes it is called as equity funding. The holders of the shares form the ownership of the company. Each share is represented by a stock certificate, which is negotiable. It means that one can buy and sell it. The value of a share is determined by the net assets divided by the total number of shares outstanding. The value of the share also depends on the success of the company. The greater the success, the more value the shares have.
A corporation can also get capital by borrowing. It is called debt funding. If a corporation borrows money, they give notes or bonds. They are also negotiable. But the interest has to be paid out whether business is profitable or not.
When running the corporation, management must consider both the outflow and inflow of capital. The outflow is formed by the purchase of inventory and supplies, payment of salaries. The inflow is formed by the sale of goods and services. In the long run the inflow must be greater than the outflow. It results in a profit. In addition, a company must deduct its costs, expenses, losses on bad debts, interest on borrowed capital and other items. It helps to determine if the financial management has been profitable. The amount of risk involved is also an important factor. It determines the fund raising and it shows if a particular corporation is a good investment.
purchase- покупка, купля,
payment of expenses- оплата расходов
property- собственность, имущество
equity funding- акционерный (долевой) способ образования денежного фонда предприятия
debt funding- образование денежного фонда предприятия с помощью займа
holders of the shares- держатели акций
stock certificate- сертификат акций
negotiable- оборотный, могущий быть переуступленным, купленным, проданным
net assets- стоимость имущества за вычетом обязательств
bond- долговое обязательство, облигация
note- зд. долговая расписка
interest- доля, фиксированный процент
to pay out- выплачивать
to run a corporation- руководить корпорацией
inflow- приток (зд. денег)
outflow- утечка (зд. денег)
inventory- материально-производственные запасы, инвентарь
1. Why do all corporations need financing?
2. What does equity funding mean?
3. What does debt funding mean?
4. How is the value of a share determined?
5. What activities produce an inflow and outflow of capital?
6. What can happen if an enterprise has a greater outflow of capital than an inflow?
7. Why is the risk involved an important factor in determining fund raising?
Choose the necessary word and put it in the sentence.
1. … funding is a financing formed by I
borrowing. I 1 equity
2. They have borrowed much money and I
they have to pay a big … . I 2 negotiable
3. Financing by shares is called … funding. I 3 interest
4. That is a very profitable deal, for that I
purpose we need extra … . I 4 inventory
5. You can sell your shares and … . I 5 funding
They are … I 6 inflow
6. The current assets of a company I
usually include cash and … . I 7 bond
7. As a result of this deal we’ll have I
greater … than outflow. I 8 debt
Mary It’ s so nice to see you, Frank. Sorry, I couldn’t come to your office today.
Frank Never mind. Have a seat. Let’ s start by having some coffee. Later.
Mary So Frank.. I guess it might be right time for me to invest in that computer company. As my stockbroker, what can you suggest?
Frank I am sure they are doing extremely well and they would welcome your investment.
Mary But why do they need my investment if they are doing so well?
Frank O.K. I think I should explain you a little about a corporate finance.
Mary Go ahead. If it concerns my money I am always interested.
Frank If a corporate enterprise wants to expand it needs financing.
Mary You are right.
Frank So there are two basic types of financing: equity and debt.
Mary What’s the difference between them?
Frank If the money is supplied by the owners of a business it is called equity funding. And the use of money supplied by loans is called debt funding.
Mary So as investor, what am I?
Frank Well, as an investor you become a partial owner of a business and receive equity. You get shares or
certificates of common stock which represent your portion of ownership.
Mary You did right buying the stock for me. By the way, are there any documents which show the financial state of the company?
Frank Oh yes. You’ve just reminded me. I’ve brought a copy of the company's Annual Report for you to look over. You should read it very carefully. And if you have something to ask do it, please.
Mary Thanks a lot, Frank. I will. Does this company pay dividends on its stock?
Frank Yes. In fact, I studied their Annual Report and I can tell that they have good management. Their business is doing very well, the value of their stock has been rising. It can be an excellent long-term investment, I am sure.
Mary But if I want to sell my shares very soon?
Prank No problem. Undoubtedly you can make a profit on the sale. But it seems to me you'll want to keep this company in your portfolio.
Mary Thank you for your advice. You are wise as usual.
Frank Well, my advice now is to study the company's Annual Report. You need several days for that. Then we'll meet and talk again.
a stockbroker- биржевой маклер
if it concerns smth- если речь идет о чем-либо
loan- заем, ссуда
partial owner- совладелец
Annual Report- годовой отчет
to pay dividends- платить дивиденды
long-term investment- долгосрочный вклад
to make a profit on the sale- получить прибыль при
Exercise 1. Make up a sentence according to the model.
Model: How should the company pay the expenses? (borrow from the government.
The company should, pay the expenses by borrowing from the government.
1. How can we form an equity funding? /issue shares/.
2. How can a business sell more shares of stock? /offer a dividend/.
3. How should we know about the financial state of the company? /look over the Annual Report/.
4. How should he invest his savings?/buy common stock/.
5. How should they make people buy their bonds? /increase
6. How can this company make a profit? /raise investment