Hierarchy

1. Romford Engineering is a public limited company and its shares are quoted on the London Stock Exchange. The chart below shows the lines of communication and command between the company’s senior officials.

The company is headed by the Managing Director (MD) and Chairperson.

The Marketing Director reports to the MD.

The Marketing Director is under the MD.

The Marketing Director is accountable to the MD.

The Marketing Director is supported by an Overseas Sales Manager.

The Marketing Director is assisted by a Market Research Manager.

2. After studying the chart answer the following questions:

1. From whom do the Marketing Director, the Production Manager, the Personnel Manager and the Financial Manager in other words the Departmental Heads take their orders?

2. From whom do the Line Managers and the Chief Engineer take orders?

3. If the Managing Director and the Production Manager had a meeting, what do you think they might discuss?

4. How many executive directors are there in Romford Engineering?

5. If the Computing Manager was sending information to the Managing Director, should he send it through the Financial Director? Why?

6. How many immediate subordinates does each of the Departmental Heads have?

7. In what circumstances do you think the Marketing Director and the Production Manager might have conflicting interests?

8. Would you expect the Chief Engineer to be paid more or less than the Production Manager? Why?

9. What sort of work would you expect the Wages Officer to do?

10. If there was a dispute between one of the line managers and the Chief Engineer, how would you expect it to be settled?

11. If there was a dispute between the Marketing Director and the Financial Director, how would you expect it to be settled?

3. The illustration below shows the organization of KAF Inc. Study the organization chart and complete the paragraph which follows, using the correct form of words or phrases from the box.

CEO