,

.. .. ..

English for Students of Management

-

2008
1

 811.111 81.2 . 888

.., .., .. ENGLISH FOR STUDENTS OF MANAGEMENT: - . .: . . 2008. 123 . . , . : , , , , , ,

ISBN 978-5-374-00118-1

, 2008 , 2008 , 2008 , 2008

CONTENTS
................................................................................................................ .............................................................................................................. Unit 1 Managemtnt an verview ................................................................................. Unit 2 The Concept of Strategic Management ............................................................... Unit 3 Managerial Knowledge, Skills and Perfomance .................................................. Unit 4 Managerial Job Types Defining Operations Management ................................. Unit 5 Defining Operations Management ....................................................................... Unit 6 Strategie Human Resovirse Management (HRM) ............................................... Unit 7 How Leaders Inluence Others ............................................................................ Unit 8 Control as a Management Process ..................................................................... Unit 9 The Nature of Managerial Communication......................................................... Unit 10 The Nature of Internetional Management .......................................................... Key to Tests ................................................................................................................. Additional Assignments ................................................................................................. Final Test ...................................................................................................................... Grammar Reference...................................................................................................... Business Case Study..................................................................................................... Supplementary Reading ................................................................................................ r ...................................................................................... ......................................................................................................... Test ........................................................................................................................................ ................................................................................................ 122 5 6 8 14 19 23 29 33 38 42 46 50 56 58 67 71 87 94 107 115


: , . . , . ( ), . , () . : 10 Units, Key to Tests, Final Test, Grammar Reference, Business Case Study, Supplementary Reading, , . Unit 4 : 1. Information for Study. 2. Exercises. 3. Vocabulary Items. 4. Test. , . , . , . : , . . , , . , . Additional Assignments . Final Test, . Grammar Reference , . . Business Case Study (Units). , Business Case Study . Business Case Study () , . 6

Supplementary Reading Units . . , . -. , , e-mail. , Step 2 . . , , . - . . . , , (Steps), . .

Unit 1
I. Information for study . MANAGEMENT: AN OVERVIEW What Is Management? Management is the process of achieving organizational goals through engaging in the four major functions of planning, organizing, leading, and controlling. This definition recognizes that management is an ongoing activity, which entails reaching important goals, and involves knowing how to perform the four major functions of management. Planning: Setting goals and deciding how best to achieve them Controlling: Regulating activities to reach goals Leading: Influencing others to work toward goals Fig 1. The Functions of management Management functions Planning. Planning is the management function that involves setting goals and deciding how best to achieve them. This function also includes considering what must be done to encourage necessary levels of change and innovation. Organizing. Organizing is the management function that focuses on allocating and arranging human and nonhuman resources so that plans can be carried out successfully. It is through the organizing function that managers determine which tasks are to be done, how tasks can best be combined into specific jobs, and how jobs can be grouped into various units that make up the structure of the organization. Staffing jobs with individuals who can successfully carry out plans is also a part of the organizing function. Leading. Leading is the management function that involves influencing others to engage in the work behaviors necessary to reach organizational goals. Leading includes communicating with others, helping to outline a vision of what can be accomplished, providing direction, and motivating organization members to put forward the substantial effort required. Controlling. Controlling is the management function that is aimed at regulating organizational activities so that actual performance conforms to expected organizational standards and goals. To do the necessary regulating, managers need to monitor ongoing activities, compare the results with expected standards or progress toward goals, and take corrective action as needed. 8 Organizing: Allocating and arranging resources

UNIT 1

The Management Process Although the four major functions of management form the basis for the managerial process, several additional elements are considered key ingredients of this process as well. The additional elements were identified by management scholars Steven J. Carroll and Dennis J. Gillen on the basis of their review of major studies on managerial work. Knowledge Base and Key Management Skills

Work Agenda

Work Methods and Roles

Management Functions     Planning Organizing Leading Controlling

Performance (goal achievement)

Fig 2. An extended model of the management process As indicated in the model, the functions of management form the central part of the process. However, the model also shows that work methods and managerial roles, as well as work agendas, feed into the management functions. A managers working knowledge and key management skills also are important factors that contribute to high performance (achieving goals). To understand how management can influence in an organization, we need to define the organization. For most of us, organizations are an important part of our daily lives. By organization, we mean two or more persons engaged in a systematic effort to produce goods or services. We all deal with organizations when we attend classes, deposit money at the bank, buy clothing, and attend a movie. We are also influenced by organizations more indirectly through the products that we use. It is useful to keep in mind that the management process applies not only to profit-making organizations but also to not-for-profit organizations. A not-for-profit organization (sometimes called a nonprofit organization) is an organization whose main purposes center on issues other than making profits. Common examples of not-for-profit organizations are government organizations (e.g., the federal government), educational institutions (your college or university), cultural institutions (New Yorks Carnegie Hall), charitable institutions (United Way), and many healthcare facilities. Of course, environmental factors (such as the state of the economy and actions by competitors) also have a bearing on ultimate goal achievement.

UNIT 1

II. Exercises 1. III .* ) 2. , , (. , . 82). 3. , , , . : learning (.) to learn (.) . planner; organizationg; leading; management; innovation; performance. 4. , . 5. , . 6. : management functions; managerial process; profit-making organization; nonprofit organization. 7. : 1) Why is management an ongoing activity? 2) What are the four major functions of management? 3) What does planning as the management function involve? 4) Which are the parts of the organizing function? 5) Which function of management includes influencing others to engage in the work behaviours necessary to reach organizational goals? 6) What is controlling aimed at? 7) What forms the basis for the managerial process? 8) Why do you think organizations are an important part of our daily lives? 8. , : What is management?

*)

10

UNIT 1

III. Vocabulary items management to achieve goals syn. to reach goals planning organizing leading controlling to perform functions to involve to set goals change innovation human resources non human resources to carry out plans task job to make up the structure of the organization to staff jobs to engage behaviours in the work to outline a vision to provide direction to motivate to be aimed at to regulate activities performance to conform to to monitor activities to compare results to form the basis for ... key ingredients scholar work method working knowledge management skills to contribute to to deal with to influence through management process profit-making organizations - ; ; ; ; ; - ; ; (in); , , ; , ,

- - (.) ... , ; ; - - , , ; -, - - , 11

UNIT 1

not-for-profit organizations = nonprofit organizations to make profit charitable institutions health-care facilities environmental factors state of the economy competitor

- , - ; - - - - IV. Test

1. , . : , 5) m. 1) Management is an ongoing activity, which a) the organizing function entails reaching important goals, and involves knowing how ... the four major functions of management. 2) The function of planning also includes b) a manager's working knowledge considering what must be done to encourage necessary levels of ... 3) Staffing jobs with individuals who can c) compare the results successfully carry out plans is also a part of ... 4) To do the necessary regulating, managers need d) key ingredients to monitor ongoing activities, with expected standards or progress toward goals, and take corrective action as needed. 5) Although the four major functions of e) not-for-profit organizations management form the basis for the managerial process, several additional elements are considered ... of this process as well. 6) ... and key management skills also are important f) to perform factors that contribute to high performance (achieving goals). 7) It is useful to keep in mind that the management g) change and innovation process applies not only to profit-making organizations but also to ... 2. , . : , 5) g.

1) management

a) the management function that involves setting goals and deciding how best to achieve them;
12

UNIT 1

2) planning 3) organizing

b) two or more persons engaged in a systematic effort to produce goods or services; c) the management function that involves influencing others to engage in the work behaviours necessary to reach organizational goals; d) the management function that is aimed at regulating organizational activities so that actual performance conforms to expected organizational standards and goals; e) the management function that focuses on allocating and arranging human and non-human resources so that plans can be carried out successfully; f) the process of achieving organizational goals through engaging in the four major functions of planning, organizing, leading and controlling.

4) leading

5) controlling

6) organization

13

Unit 2
I. Information for study . THE CONCEPT OF STRATEGIC MANAGEMENT Most well-run organizations attempt to develop and follow strategies, large-scale action plans for interacting with the environment in order to achieve long-term goals. A comprehensive statement of an organizations strategies, along with its mission and goals, constitutes an organizations strategic plan. To learn where such strategies originate and how they are put into action, we need to examine carefully an aspect of the planning function called strategic management. Strategic management is a process through which managers formulate and implement strategies geared to optimizing strategic goal achievement, given available environmental and internal conditions. This definition recognizes that strategic management is oriented toward reaching longterm goals, weighs important environmental elements, considers major internal characteristics of the organization, and involves developing specific strategies. The Strategic Management Process The strategic management process is made up of several major components. The process begins with identifying the organizations mission and strategic goals. The process also includes analyzing the competitive situation, taking into consideration both the external environment and relevant organizational factors. Once the situation has been carefully analyzed, managers can begin to develop, or formulate, various strategies that can be used to reach strategic goals. The part of the strategic management process that includes identifying the mission and strategic goals, conducting competitive analysis, and developing specific strategies is often referred to as strategy formulation. In contrast, the part of the strategic management process that focuses on carrying out strategic plans and maintaining control over how those plans are carried out is known as strategy implementation. Strategy implementation is increasingly highlighted as a distinct part of the strategic management process because even the most brilliantly formulated strategies must be implemented effectively in order to reach strategic goals. Importance of Strategic Management Strategic management is important to organizations for several reasons. For one thing, the process helps organizations identify and develop a competitive advantage, which is a significant edge over the competition in dealing with competitive forces. For example, Disney has been able to gain a competitive advantage in the family entertainment industry by creating amusement parks, movies, and products based on the renowned Disney characters.

14

UNIT 2

Strategy Formulation assess environmental factors Conduct Competitive Analysis:  Strengths  Weaknesses  Opportunities  Threats

Strategy Implementation

Identify Current Mission And Strategic Goals

Develop Specific Strategies:  Corporate  Business  Functional

Carry Out Strategic Plans Maintain Strategic Control

assess organizational factors

The strategic management process

Another reason for the importance of strategic management is that it provides a sense of direction so that organization members know where to expend their efforts. Without a strategic plan, managers throughout the organization may concentrate on day-to-day activities only to find that a competitor has maneuvered itself into a favorable competitive position by taking a more comprehensive, long-term view of strategic directions. For example, the Rayovac Corporation, a battery and flashlight maker based in Madison, Wisconsin, had fallen behind competitors in the early 1980s because of its aging product line, outdated packaging, and slowness in entering the market for alkaline batteries (which became the industry standard). Since that time, a new chairman and vice-chairman, the husband-and-wife team of Thomas and Judith Pyle, have rejuvenated the company partially through a variety of innovative new products. Yet another reason for the importance of strategic management is that it can help highlight the need for innovation and provide an organized approach for encouraging new ideas related to strategies. For instance, Disney has a special procedure for handling major innovations, whereby new ideas and accompanying financial considerations are forwarded to the strategic planning group, which evaluates them for compatibility with the firms overall strategy. In addition, the process can be used to involve managers at various levels in planning, thus making it more likely that the managers will understand the resulting plans and be committed to their implementation.

15

UNIT 2

II. Exercises 1. III . 2. , . (. , . 72). 3. , : long-term goals; a competitive advantage; strategies; innovation; new ideas; environmental elements; relevant organizational factors. 1) Most well-run organizations attempt to develop and follow . 2) This definition recognizes that strategic management is oriented toward reaching . 3) Strategic management weighs important . 4) The strategic management process also includes analyzing the competitive situation, taking into consideration both the external environment and . 5) ... is a significant edge over the competition in dealing with competitive forces. 6) Strategic management can help highlight the need for ... . 7) Strategic management can provide an organized approach for encouraging ... related to strategies. 4. , . 5. , : 1) What does the definition of strategic management recognize? 2) What does the strategic management process begin with? 3) What does the strategic management process include? 4) Why is strategy implementation increasingly highlighted as a distinct part of the strategic management process? 5) Why is strategic management important to organizations? 6. : strategies; an organizations strategic plan; strategy formulation; strategy implementation; a competitive advantage. 7. , : The concept of strategic management.

16

UNIT 2

III. Vocabulary items concept strategic management large-scale action environment long-term goals strategic goals environmental conditions internal conditions strategic management process competitive situation external environment strategy formulation strategy implementation competitive advantage competition competitor product line packaging innovation strategic planning group compatibility overall strategy achievement mission to maintain favorable aging product time outdated packaging slowness approach , ~ , ~ ; ; ~ ; , , ;

IV. Test 1. , . : , ) 7. a) competitive advantage b) strategy formulation l) large-scale action plans for interacting with the environment in order to achieve long-term goals; 2) a comprehensive statement of an organization's strategies, along with its mission and goals; 17

UNIT 2

c) strategies

3) a process through which managers formulate and implement strategies geared to optimizing strategic goal achievement, given available environmental and internal conditions; 4) the process of identifying the mission and strategic goals, conducting competitive analysis, and developing specific strategies; 5) the process of carrying out strategic plans and maintaining control over how those plans are carried out; 6) a significant edge over the competition in dealing with competitive forces.

d) strategy implementation e) an organization's strategic plan f) strategic management

2. , , . : , 20)b. 1) an organizations strategic plan 2) planning function 3) strategic goal achievement 4) environmental and internal conditions 5) an organization's mission and strategic goals 6) internal characteristics of the organization 7) competitive analysis 8) to maintain control 9) to develop a competitive advantage 10) a favorable competitive position 11) aging product line 12) outdated packaging 13) slowness in entering the market 14) need for innovation 15) organized approach a) b) c) d) e) f) g) h) i) j) k) l) m) n) o)

18

Unit 3
I. Information for study . MANAGERIAL KNOWLEDGE, SKILLS, AND PERFORMANCE For managers to develop work agendas, act out roles, and engage in planning, organizing, leading, and controlling, they need a sound knowledge base and key management skills. Knowledge Base Although managers often switch companies and work in different industries, they are apt to run into difficulties if they dont have a reasonably extensive knowledge base relevant to their particular managerial job. A knowledge base can include information about an industry and its technology, company policies and practices, company goals and plans, company culture, the personalities of key organization members, and important suppliers and customers. Key Management Skills In addition to having a knowledge base, managers need three key types of skills to carry out the various functions of management. A skill is the ability to engage in a set of behaviors that are functionally related to one another and that lead to a desired performance level in a given area. For managers, the three key skill types are technical, human, and conceptual. Technical Skills. Technical skills are skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in a specialized field such as accounting, finance, engineering, manufacturing, or computer science. Human Skills. Human skills are skills associated with a managers ability to work well with others both as a member of a group and as a leader who gets things done through others. Managers with effective human skills typically are particularly adept at communicating with others and motivating them to develop themselves and perform well in pursuit of organizational goals. Conceptual Skills. Conceptual skills are skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world. Managers need to recognize these various elements and understand the complex relationships among them so that they can take actions that advance the goals of the organization. Conceptual skills, coupled with technical skills, human skills, and a knowledge base, are important ingredients in organizational performance. Performance What constitutes high performance in an organization? Performance actually is made up of two important dimensions: effectiveness and efficiency. Effectiveness. Effectiveness is the ability to choose appropriate goals and achieve them. Effectiveness, then, has two parts. First, goals must be appropriate. Second, goals must be reached. For example, Nordstrom, Inc., a Seattle-based apparel, shoe, and soft-goods retailer, is carving out an admirable niche for itself by providing legendary good customer service at its 55 department stores (mainly on the West Coast). Sales associates (many of whom are college graduates) giftwrap packages for no extra cost and have even been known to drop them off at customers homes in a pinch. Piano players serenade customers while they shop. According to one story, which the store 19

UNIT 3

has not denied, a customer got his money back on a tire. Given that the company does not sell tires, the story illustrates the stores dedication to a return policy based on no questions asked. Bill Baer, a mens clothing salesman in the Palo Alto store, says, Nordstrom tells me to do whatever I need to do to make you happy. Period. This stance has enabled the upscale chain to expand into new areas of the country such as Washington, D.C., and New Jersey. Nordstrom illustrates that effectiveness is essentially doing (accomplishing) the right things. Efficiency. In contrast, efficiency is the ability to make the best use of available resources in the process of achieving goals. In the case of Nordstrom, the store enjoys the highest sales. In essence, organizations need to exhibit both effectiveness (doing the right things) and efficiency (doing things right) in order to be good performers. II. Exercises 1. III . 2. , : : They need both a sound knowledge base and management skills. : , . a) Technical skills are skills that reflect both an understanding of and a proficiency in a specialized field. b) Human skills are skills associated with a managers ability to work well with others both as a member of a group and as a leader who gets things done through others. c) In essence, organizations need to exhibit both effectiveness (doing the right things) and efficiency (doing things right) in order to be good performers. 3. , . . (. , . 83). 4. , . 5. , : a) Why is a knowledge base important to managers? b) What do managers need to carry out the various functions of management? c) What does a skill mean? d) What skills are associated with a managers ability to work well with others? e) What is the difference between effectiveness and efficiency in organizational performance? 6. : knowledge base; technical skills; conceptual skills; effectiveness; efficiency. 7. , : Some ways that managers can acquire an appropriate knowledge base and the key skills. 20

UNIT 3

III. Vocabulary items work agenda knowledge base management skills to switch companies apt to run into difficulties relevant supplier customer ability to be related to level technical skills proficiency human skills to associate adept to develop in pursuit of conceptual skills to visualize to discern interrelationships community to recognize to take actions performance to constitute dimension effectiveness appropriate efficiency available resources to exhibit in order to , , ; ; ; , , ; (-) ; ; , , ; ; ; , ; , , ; IV. Test 1. , . : , 8). 1) Managers are apt to run into difficulties if they don't have a a) conceptual skills reasonably extensive ... relevant to their particular managerial job. 2) A ... is the ability to engage in a set of behaviors that are b) doing the right things functionally related to one another and that lead to a desired performance level in a given area.

21

UNIT 3

3) are skills that reflect both an understanding of and a c) skill proficiency in a specialized field. 4) Managers with effective ... are particularly adept at d) doing things right communicating with others and motivating them to develop themselves and perform well in pursuit of organizational goals. 5) , coupled with technical skills, human skills, and a knowledge e) human skills base, are important ingredients in organizational performance. 6) The given example illustrates that effectiveness is essentially . f) technical skills 7) The following example illustrates efficiency as . g) knowledge base

2. , . : , 6) . 1) conceptual skills a) information about an industry and its technology, company policies and practices, company goals and plans, company culture, the personalities of key organization members and important suppliers and customers; b) skills associated with a manager's ability to work well with others both as a member of a group and as a leader who gets things done through others; c) skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts and understand how the organization fits into the wider context of the industry, community and world; d) the ability to choose appropriate goals and achieve them; e) the ability to make the best use of available resources in the process of achieving goals.

2) effectiveness

3) knowledge base

4) efficiency 5) human skills

22

Unit 4
I. Information for study . MANAGERIAL JOB TYPES Managerial jobs do vary somewhat on the basis of two important dimensions. One is a vertical dimension, focusing on different hierarchical levels in the organization. The other is a horizontal dimension, addressing variations according to the area for which managers have major responsibility. Vertical Dimension: Hierarchical Levels Along the vertical dimension, managerial jobs in organizations fall into three categories: first-line, middle, and top management. These categories can be viewed as vertical differentiation among managers because they involve three different levels of the organization. Types of managers by level and responsibility area

TOP

Vertical Levels MIDDLE of Management FIRST-LINE

HR u e ms a o n u r c e s

RD e e s v e e a l r o c p h m &e n t

M a r k e t i n g

F i n a n c e

A c c o u n t i n g

E n g i n e e r i n g

Horizontal Responsibility Areas 23

UNIT 4

First-Line Managers. First-Line Managers (or first-line supervisors) are managers at the lowest level in the hierarchy who are directly responsible for the work of operating (nonmanagerial) employees. They often have titles that include the word supervisor. First-line managers are extremely important to the success of an organization because they have the major responsibility of seeing that day-to-day operations run smoothly in pursuit of organizational goals. Because they operate at the interface between management and the rest of the work force, firstline supervisors can easily find themselves in the middle of conflicting demands. At the same time, the power of first-line supervisors has been gradually eroding because of such factors as union influence and the increasing educational level of workers. According to one recent review of research literature on first-line supervisors, the autonomy and influence of first-line managers is likely to ebb still further in the future. One reason is the increasing attempts by organizations to emulate the Japanese emphasis on worker participation in managing the work-place. Another is the trend toward work teams. Still another is the use of computers to keep track of many activities formerly regulated by first-line managers. Finally, a growing number of specialists, particularly in fields involving sophisticated technology, provide advice and direction to work areas. One implication of these developments is that the job of the first-line supervisor is likely to change toward a greater emphasis on dealing with internal human relations and on representing the unit externally. Middle Managers. Middle managers are managers beneath the top levels of the hierarchy who are directly responsible for the work of other managers below them. The managers for whom they have direct responsibility may be other middle managers or first line managers. Middle managers also sometimes supervise operating personnel, such as administrative assistants and several specialists (such as engineers or financial analysts). Many different titles are used for middle managers. Some typical titles include such words as manager, director of, chief, department head, and division head. Middle managers are mainly responsible for implementing overall organizational plans so that organizational goals are achieved as expected. Organizations, particularly very large ones, often have several layers of middle managers. For example, in recent years, giant General Motors has generally had about 14 or 15 management levels. That number reflects a post-World War II trend aimed at adding layers of middle management to help coordinate expanding activities. By the early 1980s, however, that trend began to reverse. At that point, many companies began cutting the number of levels of management hierarchy in an attempt to lower costs, reduce the layers involved in decision making, and facilitate communication. One common result of having fewer layers is that the remaining middle-management levels gain greater autonomy and responsibility. Top Managers. Top managers are managers at the very top levels of the hierarchy who are ultimately responsible for the entire organization. Top-level managers are few in number; their typical titles include chief executive officer (CEO), president, executive vice president, executive director, senior vice president and sometimes vice president. Top-level managers are often referred to as executives, although the term executive also is sometimes used to include the upper layers of middle managers as well. Top managers have direct responsibility for the upper layer of middle managers. They typically oversee the overall planning for the organization, work to some degree with middle managers in implementing that planning, and maintain overall control over the progress of the organization.

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UNIT 4

Horizontal Dimension: Responsibility Areas In addition to their vertical differences, managerial jobs differ on a horizontal dimension that relates to the nature of the area of responsibility involved. The three major types of horizontal differentiation among managerial jobs on the basis of responsibility area are functional, general, and project managers. Functional managers are managers who have responsibility for a specific, specialized area (often called a functional area) of the organization and supervise mainly individuals with expertise and training in that specialized area. Common specialized, or functional, areas include finance, manufacturing or operations, marketing, human resources management, accounting, quality assurance, and engineering. General managers are managers who have responsibility for a whole organization or a substantial subunit that includes most of the common specialized areas within it. In other words, a general manager presides over a number of specialties or functional areas (hence the term general). General managers have a variety of titles such as division manager and president, depending on the circumstances. A small company usually will have only one general manager, who is the head of the entire organization. Depending on how it is organized, a large company may have several general managers (in addition to the chief executive officer). Project managers are managers who have responsibility for coordinating efforts involving individuals in several different organizational units who are all working on a particular project. Because the individuals report not only to managers in their specific work units but also to project managers. Project managers usually must have extremely strong interpersonal skills to keep things moving smoothly. Project managers are frequently used in aerospace and other high-technology firms to coordinate projects, such as airplane or computer project development. They also are used in some consumer-oriented companies to launch or stay on top of market development for specific products such as cookies or margarine. II. Exercises 1. III . 2. , : : Managerial jobs in organizations fall into such categories as: first-line, middle, and top management. : , : , . a) At the same time, the power of first-line supervisors has been gradually eroding because of such factors as union influence and the unceasing educational level of workers. b) Middle managers also sometimes supervise operating personnel, such as administrative assistants and several specialists (such as engineers or financial analysts). c) Some typical titles include such words as manager, director of, chief, department head, and division head. d) General managers have a variety of titles, such as division manager and president, depending on the circumstances. 25

UNIT 4

e) f)

Project managers are frequently used in aerospace and other high-technology firms to coordinate projects, such as airplane or computer project development. They also are used in some consumer-oriented companies to launch or stay on top of market development for specific products such as cookies or margarine.

3. , Participle I. . (. , . 81). 4. , . 5. , : a) What do a vertical dimension and a horizontal dimension differ in? b) What are first-line managers directly responsible for? c) Why can first-line supervisors easily find themselves in the middle of conflicting demands? d) What titles are used for middle managers? e) Why did many companies begin cutting the number of levels of management hierarchy by the early 1980s? f) What managers typically oversee the overall planning for the organization? g) What do functional areas include? h) What does a general manager preside over? i) Why must project managers usually have extremely strong interpersonal skills? 6. : first-line managers / supervisors; middle managers; top managers; functional managers; general managers; project managers. 7. , : The variation of managerial jobs on the basis of a vertical dimension and a horizontal one. III. Vocabulary items managerial jobs first-line manager (first-line supervisor) supervisor work force worker participation work-place work team human relations middle manager chief , () , () ; , , , 26

UNIT 4

department head division head top manager chief executive officer executive vice-president executive director senior vice-president executive functional manager general manager functional area division manager project manager differentiation high technology influence level

; - ; - - , , (, ) ; , IV. Test

1. , . : , 6)m. 1) general managers a) managers at the lowest level in the hierarchy who are directly responsible for the work of operating (nonmanagerial) employees; b) managers beneath the top levels of the hierarchy who are directly responsible for the work of other managers below them; c) managers at the very top levels of the hierarchy who are ultimately responsible for the entire organization; d) managers who have responsibility for a specific, specialized area of the organization and supervise mainly individuals with expertise and training in that specialized area; e) managers who have responsibility for a whole organization or a substantial subunit that includes most of the common specialized areas within it; f) managers who have responsibility for coordinating efforts involving individuals in several different organizational units who are all working on a particular project.

2) project managers 3) first-line managers 4) top managers

5) functional managers

6) middle managers

27

UNIT 4

2. , . : ,7) m. 1) One dimension is a vertical dimension, focusing on different a) first-line managers in the organization. 2) ... are extremely important to the success of an organization b) horizontal because they have the major responsibility of seeing that day-to- differentiation day operations run smoothly in pursuit of organizational goals. 3) The power of first-line supervisors has been gradually eroding c) high-technology because of such factors as ... . firms 4) are mainly responsible for implementing overall d) hierarchical levels organizational plans so that organizational goals are achieved as expected. 5) Top-level managers are often referred to as ..., although the e) general manager term executive also is sometimes used to include the upper layers of middle managers. 6) The three major types of ... among managerial jobs on the basis f) union influence and of responsibility area are functional, general, and project the increasing managers. educational level of workers 7) A small company usually will have only one ..., who is the head g) executives of the entire organization. 8) Project managers are frequently used in aerospace and other ... h) middle managers to coordinate projects, such as airplane or computer project development.

28

Unit 5
I. Information for study , . DEFINING OPERATIONS MANAGEMENT Operations management is the management of the productive processes that convert input into goods and services. Because of its close association with manufacturing, operations management is sometimes called production-operations management. Recently, though, the term production is increasingly being dropped in favor of simply operations management, a term that has less of a manufacturing connotation. The operations management function is that part of the organization directly involved in producing the primary goods and services. In the case of a manufacturing organization such as Fanuc, the operations management function would include plan managers and all the other managers who work in the factories (e.g., production managers, inventory control managers, quality assurance managers, and line supervisors). If an organizations structure had corporate level, operations would also encompass any manufacturing or operations vice-presidents that exist as the corporate level, as well as related corporate operations staff (such as those primarily concerned with production, inventory, quality, facilities, and equipment). In a service industry such as the hotel business, the operations management function would include hotel managers and the various managers who work in the hotels (e.g., housekeeping managers, food and beverage managers, and convention managers). Again. If there were a corporate level, operation would also comprise managers and staff at the corporate level who are directly involved in actually running the hotels (as opposed to managers who are involved in other related functions, such as marketing and finance). Regardless of whether an organization produces a service, a product, or both, operations managers need to be acutely concerned about productivity. The productivity-operations management linkage Productivity is an efficiency concept that gauges the ratio of outputs relative to input into a productive process. Effectiveness relates to the extent to which performance reaches organizational goals. In contrast, efficiency addresses the resource usage (inputs) involved in achieving outcomes (outputs). Productivity is aimed at assessing the efficiency aspect of organizational performance the ratio of outputs relative to inputs. As such, productivity can be a useful tool for managers because it helps them track progress toward the more efficient use of resources in producing goods and services. Organizational productivity is often measured by using this equation: goods and services produced (outputs) Productivity = labor + capital + energy + technology + materials (inputs)

An approach, like this one, that considers all the inputs involved in producing outputs is sometimes 29

UNIT 5

referred to as total-factor productivity. Managers also use partial-factor productivity, a productivity approach that considers the total output relative to a specific input, such as labor. For example: goods and services produced (outputs) Productivity = labor hours (labor input) Manufacturing versus service organizations Manufacturing and service organizations differ in several important respects. Manufacturing organizations are organizations that transform input into identifiable, tangible goods, such as soft drinks, cars, or videocassette recorders. Typically, the tangible goods they produce can be stored (at least to some degree), and the untimate customer does not usually need to be present while the transformation process is taking place. As a result, manufacturing can often be done in centralized places, and the products can be shipped to customers. In addition, a manufacturing concern can often avoid wasting capacity during slack periods by using available capacity to produce inventory in anticipation of future sales. II. Exercises 1. III. 2. , (. . 76) . 3. . : , 1-5. 1) to involve 1) activity 2) to gauge 2) to deal with 3) to concern with 3) to track 4) process 4) to assess 5) to follow 5) to encompass 6) operations management 6) production 4. , . 5. : 1) 2) 3) 4) 5) 6) What is operations management? What is the function of operations management? What are the operations management functions in the case of manufacturing organizations? What are the operations management functions in the case of service industry? What is productivity? How does productivity help managers?

6. : Operations management. 30

UNIT 5

III. Vocabulary items production operations management connotation primary goods and services to involve corporate level to encompass to gauge total-factor productivity partial-factor productivity to exist to relate facilities and equipment service industry acutely to track labor (.) = labour (.) to store to assess resources manufacturing customer goal , , , , - () - () , , , , , , , IV. Test 1. : 10-b. 1. Operations management 2. Productivity ) is an efficiency concept that gauges the ratio of outputs relative to input into a productive process. b) are organizations that transform inputs into indentifiable, tangible goods, such as soft drinks, cars or videocassette recorders. c) is a productivity approach that considers the total output relative to specific input, such as labour. d) is an approach, that considers all the inputs involved in producing outputs. e) is the management of the productive processes that convert inputs into goods and services.

3. Total-factor productivity 4. Partial-factor productivity 5. Manufacturing organizations

31

UNIT 5

2. , , : , 1) m. 1) The operations management function (OMF) would include a) productivity 2) The operations management function is the part of the b) the primary goods and organization that is involved in producing services

3) The operations management functions in the hotel business c) labor include 4) Whether an organization produces a service or a product, d) customers operations managers need to be acutely concerned about

5) Effectiveness relates to the extent to which performance e) goods and services reaches 6) Productivity can be a useful tool for managers because it f) organizational goals helps them track progress toward the more efficient use of resources in producing 7) A productivity approach considers the total output relative to g) hotel managers a specific input, such as 8) Products can be shipped to h) plan managers

32

Unit 6
I. Information for study . STRATEGIC HUMAN RESOURCE MANAGEMENT (HRM) At 3M, a company famous for fostering employee innovation, human resource issues are increasingly an integral part of strategic management. Thus 3M is at the forefront of a trend toward recognizing human resources as a crucial element in the strategic success of organizations. In a growing number of organizations, such as 3M and CARE, high-level managers within the human resource management function participate directly in strategy implementation. They also help coordinate human resource aspects of strategy implementation. In this section, we review major aspects of the human resource management process before exploring in greater depth the main reasons for the growing strategic role of human resource management. The HRM Process: An Overview As suggested by the HRM process shown in Figure, human resource management encompasses a number of important activities. One critical aspect of the process, human resource planning, assesses the human resource needs associated with strategic management and help identify staffing needs. The staffing component of the process includes attracting and selecting individuals for appropriate positions. Once individuals become part of the organization, their ability to contribute effectively is usually enhanced by various development and evaluation efforts, such as training and periodic performance evaluations. Compensating employees for their efforts is another important factor in the HRM process, because adequate rewards are critical not only to attracting but also to motivating and retaining valuable employees. Finally, managers must respond to various issues that influence work-force perceptions of the organization and its treatment of employees. In order to explore human resource management in an orderly fashion, the various activities that make up the HRM process are discussed sequentially in this part. The components, though, are actually highly interrelated. For example, when a group of British financiers took over the British arm of F.W. Woolworth from its American parent in 1982, the chain of 1000 stores had a tarnished image and 30,000 employees with a reputation for poor service. Investigation revealed many interrelated problems, such as poor employment interviewing practices (interviews typically lasted 10 minutes), little training for either sales staff mangers, and a components of the HRM process collectively reinforced the service problems. Human resource professionals operating within human resource departments typically play a major role in designing the various elements in the HRM process and in supporting their use by line managers. Nevertheless, line managers ultimately are responsible for the effective utilization of human resources within their units and, thus, carry out many aspects of the HRM process, particularly as they relate to implementing strategic plans.

33

UNIT 6

Human Resource Planning

Staffing

Development and Evaluation

Compensation

Maintaining Effective Work Force Relationships The Strategic Importance of HRM Understanding the strategic potential of human resource management in organizations is relatively recent phenomenon. In fact, the role of such management in organizations, as it is known today, has evolved through three main stages. From early in this century until the mid -1960s, HRM activities comprised a file maintenance stage, in which much of the emphasis was on screening applicants, orienting new employees, recording employee-related data for personnel purposes, and planning company social functions (such as the company picnic). The second stage, government accountability, began with passage of the Civil Rights Act of 1964 (which forbids employment discrimination based on race, color, religion, sex, or national origin) and continued as additional laws, court rulings, and federal regulatory guidelines increasingly impacted various aspects of employment, such as hiring and promotion decisions, pension plans, and health and safety issues. Of course, some laws, particularly those governing relations with unions, existed before 1964, but the mid-1960s ushered in an era of accelerated governmental regulation of employment issues. As organizations attempted to gain greater control over activities that could result in legal difficulties and large financial settlements, the HRM function gained in importance. Indicative of the expense that can be involved, under a 1973 consent decree (a court-sanctioned agreement in which the accused party does not admit wrongdoing but agrees to discontinue a practice), AT&T agreed to raise the starting pay of women promoted to managerial positions so that their pay level would be equal to those of similarly promoted men, at a cost of more that $30 million. The third stage, which began in the late 1970s and early 1980s, can be termed the competitive advantage stage. In this stage, human resource management is increasingly viewed as important for both strategy formulation and implementation. Thus, under some circumstances, human resources can comprise a source of distinct competence that forms a basis for strategy formulation. For example, 3Ms notes scientists enable the company to pursue a differentiation strategy based on innovative products. Under other circumstances, HRM activities may be used to support strategy implementation. For instance, at Honda of Americas Marysville, Ohio, plant, an emphasis on differentiation through quality is supported by such HRM activities as training programs, developmental performance appraisal processes, and promises of job security. Human resource management often is an important ingredient in the success of such strategyrelated activities as downsizing, mergers, and acquisitions. At the competitive advantage stage, then human resources are considered explicitly in conjunction with strategic management, particularly through the mechanism of human resource planning.

34

UNIT 6

II. Exercises 1. III . 2. , (. . 81-82). building selling planning staffing attracting selecting training compensating motivating retaining interviewing 3. , . 4. , : 1) 2) 3) 4) 5) 6) 7) What is an integral part of strategic management? What are the major aspects of HRM? What does HRM encompass? What is one of the critical aspect of the process? What does it associate with? What does the staffing component include? What are the three main stages in the activities of HRM?

5. . human resource management; file maintenance stage; competitive advantage stage. 6. : What is the strategic human resource management? III. Vocabulary items -. () , , ; () () 35

to be famous for to foster crucial element to coordinate implement(ation) overview to encompass to assess staffing needs

UNIT 6

to contribute to enhance to evaluate to interrelate tarnished image to reveal to be responsible for to evolve to comprise to downsize merger acquisition to screen to attract to select utilization employee to compensate line manager competitive advantage stage activity

, (), , , , , , , , , , , , , , () , (, )

IV. Test 1. , . : , 1) m. 1) Investigation revealed many interrelated a) attracting and selecting

2) The staffing component of the process includes and individuals. 3) Line managers ultimately are responsible for b) managers

c) effective utilization of HRM

4) One critical aspect of the process assesses the human resource needs. 5) encompasses a number of important activities.

d) human resource management

e) problems

6) is another important factor in the HRM process. 7) must respond to various issues that influence work-force perceptions of the organization.

f) human resource planning

g) compensating employees

36

UNIT 6

2. , . : 10) b. 1) Human resource professionals 2) Line managers a) may be used to support strategy implementation. b) is an important ingredient in the success of such strategy related activities as downsizing, mergers, and acquisition.

3) The competitive advantage c) are responsible for the effective utilisation of human stage resources within their units. 4) Human resources 5) HRM activities 6) Human resource managment d) can comprise a source of distinct competence that forms a basis for strategy formulation. e) play a major role in designing the various elements in the HRM. f) is increasingly viewed as important for both strategy formulation and implementation in the HPM.

37

Unit 7
I. Information for study . . HOW LEADERS INFLUENCE OTHERS Why do people accept the influence of a leader? One major reason is that leaders have power. In this section, we examine the major sources of power and the ways that leaders can effectively use the power they potentially have available. Sources of Leader Power Power is the capacity to affect the behavior of others. Leaders in organizations typically rely on some or all of six major types of power: legitimate, reward, coercive, expert, information, and referent. Legitimate Power. Legitimate power stems from a positions placement in the managerial hierarchy and the authority vested in the position. When we accept a job with an organization, we usually are aware that we will be receiving directions related to our work from our immediate boss and others in the hierarchy. Normally, we accept such directions as legitimate because these persons hold positions of authority. Hence legitimate power relates to the position, rather than to the person per se. Reward Power. Reward power is based on the capacity to control and provide valued rewards to others. Most organizations offer an array of rewards, including pay raises, bonuses, interesting projects, promotion recommendations, a better office, support for training programs, assignments with high visibility in the organization, recognition, positive feedback, and time off. The greater a managers control over valued rewards, the greater that managers reward power. Coercive Power. Coercive power depends on the ability to punish others when they do not engage in desired behaviors. Forms of coercion or punishment include criticisms, terminations, reprimands, suspensions, warning letters that go into an individuals personnel file, negative performance appraisals, demotions, and withheld pay raises. The greater the freedom to punish others, the greater a managers coercive power. Expert Power. Expert power is based on the possession of expertise that is valued by others. Managers often have considerable knowledge, technical skills, and experience that can be critical to subordinates success. To the extent that a leader possesses expertise and information that is needed or desired by others, the leader has expert power. Information Power. Information power results from access to and control over the distribution of important information about organizational operations and future plans. Managers usually have better access to such information than do subordinates and have some discretion over how much is disseminated to work-unit members. The greater the control over important information, the greater the information power. Referent Power. Referent power results from being admired, personally identified with, or liked by others. When we admire people, want to be like them, or feel friendship toward them, we more willingly follow their directions and exhibit loyalty toward them. Some observers argue that Lee Iacoccas initial success in turning around the Chrysler Corporation was based partially on the fact that he possessed referent power in relation to the work force. The more that a leader is able to cultivate the liking, identification, and admiration of others, the greater the referent power. 38

UNIT 7

Effective Use of Leader Power Although all six types of power are potential means of influencing others, in actual usage they may engender somewhat different levels of subordinate motivation. Subordinates can react to a leaders direction with commitment, compliance, or resistance. With commitment, employees respond enthusiastically and exert a high level of effort toward organizational goals. With compliance, employees exert at least minimal efforts to complete directives but are likely to deliver average, rather than stellar, performance. With resistance, employees may appear to comply but actually do the absolute minimum, possibly even attempting to sabotage the attainment of organizational goals. For example, when Chicago scrap-metal czar Cyrus Tang bought the ailing McLouth Steel Products Corporation, he relied on legitimate and coercive power to gain worker cooperation. Workers reacted with production slowdowns and a wildcat strike that eventually led to the further deterioration of the company and its sale to employees. Managers usually rely on several different types of power in order to be effective. When Jim Lynn was chosen to be chairman of the Aetna Life & Casualty Company, the firm had just been through the painful process of a competitive price-cutting program, had suffered write-offs from several ill-fated acquisitions in noninsurance areas, and was facing the lowest earnings in 9 years. At that point, Lynn, a 6year veteran on Aetnas board of directors, a previous partner in two prestigious law firms, and a former Nixon administration cabinet member, had a reputation for being effective with both handling people and solving problems. In establishing himself at Aetna, he clearly had the legitimate power of his new chairmans position. However, he relied heavily on building referent power. According to one former Aetna senior vice president, Lynn went out of his way to portray a peer relationship with everybody. He also used reward power to boost the morale of the heads of Aetnas three principal businesses, each with revenues of more than $3 billion, by awarding them the title of president in recognition of their major roles in the company. II. Exercises 1. III . 2. , : : The greater the price on the good, the greater the tax on the good. : , . 1) 2) 3) 4) 5) The more we read, the more we know. The greater a managers control over valued rewards, the greater that managers reward power. The greater the freedom to punish others, the greater a managers coercive power. The greater the control over important information, the greater the information. The more we work, the more we get.

3. , . . (. , . 72). 4. , . 5. , : 1) What are the sources of leader power? 39

UNIT 7

2) 3) 4) 5)

What does legitimate power stem from? What is reward power based on? What does coercive power depend on? What is expert power based on?

6. : referent power; information power; power. 7. , : How do leaders influence others? III. Vocabulary items leader power legitimate power reward power coercive power expert power information power referent power promotion bonus to train to gain slowdown deterioration competitive price-cutting program write-off ill-fated acquisitions noninsurance areas revenue () (); , , , , () ; () , (, ) , IV. Test 1. , . : , 1) g.

1) Managers usually rely on several different types of power . 2) The use of coercive power has a strong tendency .

a) referent power b) being effective with both handling people and solving problems

40

UNIT 7

3) Nixon administration cabinet member had a reputation for ... .

c) to provoke resistance in subordinates 4) Nixon relied heavily on building . d) in order to be effective 5) He also used reward power to boost the morale of the heads of e) in recognition of Aetnas three principal businesses, each with revenues of more their major roles in the than $3 billion, by awarding them the title of president . company

2. , . : , 5) h. 1) Power 2) Legitimate power 3) Reward power 4) Coercive power 5) Expert power . a) is based on the possession of expertise that is valued by others. b) is the capacity to affect the behavior of others. c) results from being admired, personally identified with, or liked by others. d) is based on the capacity to control and provide valued rewards to others. e) results from access to and control over the distribution of important information about organizational operations and future plans. f) depends on the ability to punish others when they do not engage in desired behaviors. g) stems from a position's placement in the managerial hierarchy and the authority vested in the position.

6) Information power 7) Referent power

41

Unit 8
I. Information for study . CONTROL AS A MANAGEMENT PROCESS Like their McDonalds counterparts, managers in other organizations also face important issues related to the function of controlling. Controlling is the process of regulating organizational activities so that actual performance conforms to expected organizational standards and goals. As the definition suggests, controlling means that managers develop appropriate standards, compare ongoing performance against those standards, and take steps to ensure that corrective actions are taken when necessary. Since most aspects of organizations ultimately depend on human behavior, controlling is largely geared toward ensuring that organization members behave in ways that facilitate the reaching of organizational goals. Thus controls both highlight needed behaviors and discourage unwanted behaviors. For instance, during their 2-year training program, management trainees preparing to become McDonalds franchisees work their way through a thick quide that spells out various aspects of what to do and not do in properly running a McDonalds outlet. Significance of the Control Process As you might expect, the controlling function is closely allied to the other, three major functions of management: planning, organizing, and leading. It builds most directly on the planning function by providing the means for monitoring and making adjustments in performance so that plans can be realized. Still, controlling also supports the organizing and leading functions by helping ensure that resources are channeled toward organizational objectives. For example, feedback from the control process might signal the need to reorganize, provide more training to workers, clarify communications, increase leadership influence, or take other actions associated with the respective organizing and leading functions. For instance, after detecting a shortage of workers who could assume some supervisory responsibilities, six McDonalds restaurants in Fairfax Virginia, have been experimenting with a training program to teach English to workers who have management potential but speak little English. As part of the control process, managers set up control systems. A control system is a set of mechanisms that are designed to increase the probability of meeting organizational standards and goals. Control systems can be developed to regulate any area that a manager considers important, such as quantity produced, resources expended, profit margins, quality of products or services, client satisfaction, timeliness of deliveries, or specific activities that are performed in producing a product or service. For example, McDonalds has a 19-step procedure that workers have rigidly to follow when they are cooking and bagging french fries. Local managers are expected to ensure that employees prepare and bag french fries in accordance with these steps to that the french fries will conform to McDonalds standards. This procedure also is one of the operations that corporate evaluation teams check during their unannounced inspections of outlets. Thus the local managers, the corporate evaluation teams, and the standards embodied in the procedure from part of a control system aimed at achieving consistently good french fries at all McDonalds outlets. 42

UNIT 8

II. Exercises 1. III . 2. (. , . 79) 3. , . 4. , . 1) 2) 3) 4) 5) 6) What is controlling? What does the controlling mean from the management point of view? How are controls related to behaviors? What are the major functions controlling is closely allied to? What is control system used for? What is the role of controls?

5. : Controlling; Control system; Controlling function.

6. , : What kind of activities does the control process include? III. Vocabulary items
counterpart controlling to regulate activities to conform to standards goal to ensure syn. to provide human behaviour to behave to gear training training program trainee franchisee to run outlet to be allied to to monitor to make adjustment to channel resources toward feedback ; . ; , ; ; ; () . ; . , ()

43

UNIT 8

shortage to assume responsibility to meet standards quantity quality profit margin client satisfaction timeliness of deliveries procedure corporate evaluation team highlight performance portable computer inflation to expend research

; ; ; , , ,

IV. Test 1. . : , 8) . 1) Most aspects of organizations ultimately depend on a) resources are channeled 2) The planning function mainly provides the means for so that plans can be realized. 3) The organizing and leading functions help ensure that toward organizational objectives. 4) As part of the control process, managers set up 5) Control systems can be developed any area that a manager considers important. 6) check some operations of the procedure during their unannounced inspections of outlets. 7) Controls both needed behaviors and discourage unwanted behaviors. b) human behaviour

c) to regulate

d) corporate evaluation teams e) highlight

f) control systems

g) monitoring and making adjustments in performance

44

UNIT 8

2. , , . . : k, f, e, c. a) quality of products or services b) change and innovation c) portable computers d) profit margins e) timeliness of deliveries f) consumer-products business g) scientific research h) quantity produced i) client satisfaction j) resources expended k) inflation

Control systems can regulate

45

Unit 9
I. Information for study . . THE NATURE OF MANAGERIAL COMMUNICATION Communication is the exchange of messages between people for the purpose of achieving common meanings. Unless common meanings are shared, managers find it extremely difficult to influence others. For example, in looking back on his efforts to revitalize General Motors, former CEO Roger Smith says that he would make the same decisions for again regarding the implementation of major changes to rebuild the company foe global leadership in the twenty first century. Types of Communication In their work, managers use two major types of communication: verbal and nonverbal. Each type plays an important part in the effective transmissions of messages within organizations. Verbal Communication. Verbal communication is the written or oral use of words to communicate. Both written and oral communications are pervasive in organizations. Written communication occurs through a variety of means, such as business letters, office memorandums, reports, resumes, written telephone messages, newsletters, and policy manuals. In many cases, considerable time and effort are expended in preparing written communications. According to several estimates, the cost of producing a single letter or memo has risen to more than $7, with one recent estimate placing the figure as high as $25 for the average memo. Yet one study of 800 randomly selected letters from a variety of industries indicates that written business correspondence suffers from significant deficiencies in such areas as proper word usage, clear sentence construction, and precision. A related study shows that more than 80 percent of managers judge the quality of the written communication they receive as either fair or poor. They also did not give themselves very high grades, with 55 percent describing their own writing skills as fair or poor. Despite some possible shortcomings in writing skills, written communication generally has several advantages over oral communication. Written communication provides a records of the message, can be disseminated widely with a minimum of effort, and allows the sender to think through the intended message carefully. Written communication also has several disadvantages, including the expense of preparation, the relatively impersonal nature of written communications, possible misunderstanding by the receiver, and the delay of feedback regarding the effectiveness of the message. In contrast to written communication, oral communication, or the spoken word, take place largely through face-to-face conversations with another individual, meetings with several individuals, and telephone conversations. Oral communication has the advantage of being fast, is generally more personal than written communication, and provides immediate feedback from others involved in the conversation. Disadvantages include the fact that oral communication can be time-consuming, can be more difficult to terminate, and requires that additional effort be expended to document what is said if a record is necessary. Given the advantages and disadvantages of written and oral communication, it is not surprising that both types of verbal communication are used. 46

UNIT 9

Nonverbal Communication. Nonverbal communication is communication by means of elements and behaviors that are not coded into words. Studies estimate of elements that nonverbal aspects account for between 65 and 93 percent of what gets communicated. Interestingly, it is quite difficult to engage in verbal communication without some accompanying form of nonverbal communication. Important categories of nonverbal communication include kinesic behaviour, proxemics, paralanguage, and object language. Kinesic behavior refers to body movements, such as gestures, facial expressions, eye movements, and posture. We often draw conclusions regarding peoples feelings about an issue, not only from their words but also from their nonverbal behaviour, such as their facial expressions. Proxemics refers to the influence of proximity and space on communication. For example, some managers arrange their offices so that they have an informal area where people can sit without experiencing the spatial distance and formality created by a big desk. Another example of proxemics, which you have probably experienced, is that you are more likely to get to know students whom you happen to sit near in class than students who are sitting in other parts of the room. Paralanguage refers to vocal aspect of communication that relate to how something is said rather that to what is said. Voice quality, tone of voice, laughing, and yawning fit in this category. Object language refers to the communicative use of material things, including clothing, cosmetics, furniture, and architecture. If you have prepared a job resume lately, you probably gave some thought to the layout and to the type of paper on which you wanted your resume printed nonverbal aspects of your communication about yourself and your credentials. Nonverbal elements form an important part of the messages that managers communicate. II. Exercises 1. III . 2. , Participle II . (. . 81) 3. , . 4. , : 1) 2) 3) 4) 5) 6) 7) 8) What is communication? What kind of communication do managers use in their work? What is verbal communication? How does written communication occur? What are the advantages of written communication? Where does oral communication take place? What do the disadvantages of both written and oral communications include? What can you say about nonverbal communication? proxemics; paralanguage; object language; kinesic behavior. 47

5. :

UNIT 9

6. , : The nature of managerial communication. III. Vocabulary items communication managerial communication verbal communication common meaning written communication nonverbal communication estimate kinesic behaviour paralanguage object language implementation transmission deficiency shortcoming to disseminate to involve layout credential(s) to refer ; ; ; ; ~ ; ~ ; ~ ; ~ ; ~ ; ~ , , ; ; ; ; , , IV. Test 1. . : , 1) m. 1) 2) 3) 4) 5) 6) 7) 8) 9) a) common meaning b) kinesic behaviour c) managerial communication d) verbal communication e) object language f) paralanguage g) communication h) written communication k) nonverbal communication

2. , . : : 1) m. 1) Communication is ... 2) Paralanguage refers to . a) ... the written or oral use of words to communicate. b) ... vocal aspect of communication that relate to how something is said rather that to what is said. 48

UNIT 9

3) Proxemics refers to .

c) the influence of proximity and space on communication. d) ... the communicative use of material things, including clothing, cosmetics, furniture, and architecture. e) ... the communication by means of elements and behaviours that are not coded into words. f) ... the exchange of messages between people for the purpose of achieving common meanings. g) ... body movements such as gestures, facial expressions, eye movements and posture.

4) Kinesic behaviour refers to ... .

5) Nonverbal communication is .

6) Verbal communicational is ... .

7) Object language refers to .

49

Unit 10
I. Information for study . . THE NATURE OF INTERNATIONAL MANAGEMENT If you took an inventory of the items that are in your living quarters, you would probably find many that reflect the increasing volume of business conducted on an international basis. For example, you might have shoes from Italy or Brazil, a television and VCR from Japan, and a shirt made in Korea. Even items that bear the brand names of a U.S.-based company may have been produced in a far-off land in the course of international business. International business refers to profit-related activities conducted across national boundaries. Such activities encompass importing supplies from other countries, selling products or services to customers abroad, or providing for the transfer of funds to subsidiaries in other countries. International management is the process of planning, organizing, leading, and controlling in organizations engaged in international business. Changing character of international Business There is strong evidence that the United States is losing its competitive edge in international trade and is facing increasing competiting in world markets. According to some accounts, the United States enjoyed an abnormal advantage for several decades after World War II because the productive facilities of other large industrial powers had been severely damaged by wartime activities. Now countries such as Japan and Germany have become formidable competitors, and developing nations such as Brazil, India, and South Korea also are emerging as potential major players. Despite the increased competition, though, international markets are growing rapidly, providing expanded opportunities for many U.S.-based businesses. Organizations engaged in international management Organizations that engage in international management vary considerably in size and in the extent to which their business activities cross national boundaries. One special type of organization involved in international management is the multinational corporation. Although definitions differ somewhat, the term multinational corporation (MNC) is typically reserved for an organization that engages in production or service activities though its own affiliates in several countries, maintains control over the policies of those affiliates, and manages from a global perspective. RANK 1988 1 2 3 4 1 4 3 2 The Worlds 25 Largest Industrial Multinational Corporations 1987 Company General Motors Ford Motors Exxon Royal Dutch / Shell Group Headquarters Detroit Dearborn, Mich New York Industry Motor vehicles Motor vehicles Petroleum refining

London / The Hague Petroleum refining 50

UNIT 10

1988 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

1987 Company 5 International Business Machines 8 Toyota Motor 10 6 7 9 11 16 21 18 17 19 15 12 14 20 24 22 27 32 25 General Electric Mobil British Petroleum IRI Daimler-Benz Hitachi Chrysler Siemens Fiat Matsushita Electric Industrial Volkswagen Texaco E.I. Du Pont de Nemours Unilever Nissan Motor Philips' Gloeilampenfabrieken Nestle Samsung Renault

Headquarters Armonk, N.Y. Toyota City (Japan) Fairfleild, Conn New York London Rome Stuttgart Tokyo Highland Park, Mich Munich Turin Osaka Wolfsburg (W. Ger.) White Plains, N.Y. Wilmington, Del London / Rotterdam Tokyo Endhoven (Netherlands) Vevey (Switzeriands) Seoul Paris

Industry Computers Motor vehicles Electronics Petroleum refining Petroleum refining Metals Motor vehicles Electronics Motor vehicles Electronics Motor vehicles Electronics Motor vehicles Petroleum refining Chemicals Food Motor vehicles Electronics Food Electronics Motor vehicles

Multinational corporations are not always easy to identify, since it may be difficult to determine from the outside how much control management maintains over the policies of affiliates or whether management actually uses a global perspective. As a result, for purposes of gathering statistics, an arbitrary percentage (such as 25 percent of sales from foreign sources) is sometimes used to distinguish multinational corporations from other types of international businesses. However, there is no single universally accepted percentage of foreign sales that clearly separates multinational corporations from others. Regardless of their size, companies may decide to expand internationally for a number of different reasons. Some organizations may become involved through unsolicited orders from foreign customers. Others may initiate international efforts in order to open new markets or to preclude foreign companies from entering specific foreign markets and eventually becoming domestic competitors. Still others may be motivated by the need to develop sources of supplies, possibilities of acquiring needed technology or prospects for reducing costs by operating in foreign countries. Whatever the reason, managers need to think through their basic orientation toward international management. 51

UNIT 10

Orientations toward International management Top-level managers in companies that are expanding internationally (particularly those in multinational corporations) tend to subscribe to one of three basic orientations, or philosophies, regarding a degree to which methods of operating are influenced by headquarters or by company members in other parts of the world. The three orientations are ethnocentric (home-country oriented), polycentric (host-country oriented), and geocentric (world oriented). A home country is the country in which an organizations headquarters is located, whereas a host country is a foreign country in which an organization is conducting business. An ethnocentric (or home-country) orientation is an approach to international management whereby executives assume that practices which work in the headquarters or home country must necessarily work elsewhere. For example, during the period 1973 to 1986, Procter & Gamble lost an estimated quarter of a billion dollars of business in Japan partially because of an ethnocentric orientation. As one former Japanese employee stated, They did not listen to anybody. One of the most serious blunders was a commercial for Camay soap that was used in the late 1970s. The commercial showed a Japanese man meeting a Japanese woman for the firs time and immediately comparing her skin to that of a fine porcelain doll. Although this commercial had worked well in the Philippines, South America, and Europe, it was a disaster in Japan. A Japanese advertising specialist who worked on the commercial had warned Procter & Gamble that only an unsophisticated or rude man would say something like that to a Japanese woman, but company representatives would not listen. As the visechairman of Procter & Gamble later noted, We learned a lesson here [in Japan] about tailoring your products and marketing to the market. Although an ethnocentric orientation often is a phase that organizations go through when they enter the international area, it can prove extremely difficult to eradicate. A polycentric (or host-country orientation) is an approach to international management whereby executives view host-country cultures and foreigners as difficult to fathom and, therefore, believe that the parts of the organization located in a given host country should be staffed by local individuals to the fullest extent possible. Locals or nationals, as they are sometimes called are thought to know their own culture, mores, work ethics, and markets best. As a result, subsidiaries in various countries operate almost independently under the direction of local individual and are tied to the parent company mainly through financial control. The parent company may maintain a very low public profile relative to the subsidiary, as was the case until recently with Unilever and its U.S. subsidiary, Level Brothers. It is very possible that you only discovered that a Level Brother was owned by a foreign company when you read the individuals run operations in the host countries, they have little prospect of holding senior executive positions as headquarters, mostly because they are perceived as having only a local perspective and expertise. Still, a polycentric approach may be successful when decision making is largely decentralized to host-country personnel. The geocentric (or world) orientation is an approach to international management whereby executives believe that a global view is needed in both the headquarters of the parent company and its various subsidiaries and that the best individuals, regardless of home- or host-country origin, should be utilized to solve company problems anywhere in the world. Major issues are viewed from a global perspective at both headquarters and subsidiaries, which consider questions such as Where in the world shall we raise money, build our plant, conduct R & D, develop and launch new ideas to serve our present and future customers?. The geocentric approach is the most difficult to achieve because it requires that managers acquire both local and global knowledge.

52

UNIT 10

II. Exercises 1. III . 2. , Perfect Passive Infinitive (. , . 80). 3. , . 4. , . a) b) c) d) What does international business refer to? What is international management? What does MNC mean? What are the three orientations in international management?

5. : international management; multinational corporation; ethnocentric orientation; polycentric orientation; geocentric orientation.

6. , : What is the nature of international management?

inventory to conduct to bear far-off boundary to encompass edge abnormal formidable to emerge rapidly to be engaged to vary extent to affiliate perspective unsolicited orders to involve to subscribe headquarters to assume executive to fathom -

III. Vocabulary items , () , , 1) , 2) , , , , - 53

UNIT 10

blunder subsidiary ethnocentric polycentric geocentric

IV. Test 1. . : , a) 10. a) The process of planning, organizing, leading, and controlling in organizations engaged in international business is ... . b) One special type of organization involved in international management is ... . 1) multinational corporation

2) international management c) An approach to international management whereby executives assume 3) geocentric that practices work in the headquarters is ... . orientation d) An approach to international management where by executives view 4) ethnocentric host-country cultures and foreigners as difficult to fathom and believe that orientation the parts of the organization located in a given host country should be staffed by local individuals to the fullest extent possible is ... . e) An approach to international management whereby executives believe 5) policentric that a global view is needed in both the headquarters of the parent company orientation and its various subsidiaries is . f) is a foreign country in which an organization is conducting business. g) refers to profit-related activities conducted across national boundaries. h) is the country in which an organizations headquarters is located. 6) international business 7) home country 8) host country

2. , . : , ) 1. 1) international trade a) In the inventory of the items you would probably find many that reflect the increasing volume of business conducted on . b) The brand names of U.S.-based company may have been produced in . c) The profit-related activities encompass important supplies from . 54

2) international management 3) international business

UNIT 10

4) the subsidiary 5) different reasons 6) other countries 7) a far-off land 8) multinational corporations

d) The United States is losing its competitive edge in . e) There is no single universally accepted percentage of foreign sales that clearly separates from others. f) Regardless of their size, companies may decide to expand internationally for a number of . g) Whatever the reason, managers need to think through their basic orientation toward . h) The parent company may maintain a very low public profile relative to .

55

( )
Unit 1 1. 1) f 2) g 3) a 4) c 5) d 6) b 7) e Unit 2 1. a) 6 b) 4 c) 1 d) 5 e) 2 f) 3 Unit 3 1. 1) g 2) c 3) f 4) e 5) a 6) b 7) d Unit 4 1. 1) e 2) f 3) a 4) c 5) d 6) b 2. 1) d 2) a 3) f 4) h 5) g 6) b 7) e 8) c 2. 1) h 2) b 3) g 4) a 5) f 6) e 7) c 8) d 56 2. 1) c 2) d 3) a 4) e 5) b 2. 1) f 2) i 3) k 4) l 5) a 6) g 7) c 8) m 9) j 10) b 11) n 12) o 13) e 14) h 15) d 2. 1) f 2) a 3) e 4) c 5) d 6) b

Key to Tests

Unit 5 1. 1) e 2) a 3) d 4) c 5) b

KEY TO TESTS

Unit 6 1. 1) e 2) a 3) c 4) f 5) d 6) g 7) b Unit 7 1. 1) d 2) c 3) b 4) a 5) e 6) e 7) c Unit 8 1. 1) b 2) g 3) a 4) f 5) c 6) d 7) e Unit 9 1. 1) c 2) d 3) g 4) a 5) h 6) k 7) b 8) f 9) e Unit 10 1. a) 2) b) 1) c) 4) d) 5) e) 3) f) 8) g) 6) h) 7) 2. a) 3 b) 7 c) 6 d) 1 e) 8 f) 5 g) 2 h) 4 57 2. 1) f 2) b 3) c 4) g 5) e 6) a 7) d 2. a, d, e, h, i, j 2. 1) b 2) g 3) d 4) f 5) a 2. 1) e 2) c 3) f 4) d 5) a 6) b

ADDITIONAL ASSIGNMENTS

BLOCK 1 1. . 1. 2. 3. 4. 5. 6. 7. 8. , 9. 10. 11. 12.

1. to allocate 2. innovation 3. to compare 4. to motivate 5. work method 6. to deal with 7. management process 8. profit-making organizations 9. profit 10. to involve

2.

. 1. a competitor 2. key method 3. to motivate 4. to monitor activities 5. to perform functions 6. environmental factors 7. staff 8. performance 9. working knowledge 10. to make profit 11. human resources 12. state of the economy

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

3. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

. Please, forgive my not coming on time. The book is worth reading. You shouldnt put talking with these businessman. She tried to avoid speaking with this secretary. The doctor insisted sending the thick man to the hospital. Do you mind him examining by a heart specialist? I dont feel like having a cup of strong tea. It depends living conditions. He did all possible to prevent her falling. She always complains being alone. This manager gave the idea having talking with mr. Brown. 58 a) b) c) d) e) f) g) h) of to off up on at from

ADDITIONAL ASSIGNMENTS

4. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Infinitive or Gerund. These two young people are sure to be / being very good friends. She isnt likely to change / changing her opinion. Why do you avoid to speak / speaking to me? Do you mind him to examin / examining by a heart specialist? Excuse me for to break / breaking your beautifull vase. She made me to write / writing this letter. He saw her to sit / sitting at the table. In to make / making this experiment they came across some very interesting phenomena. The results of the experiment must be checked and re-checked before to publish / publishing.

5. , , : G-E-E-M-M-A-A-N-N-T BLOCK 2 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. . long-term external environment product line packaging large-scale action compatibility internal conditions strategy formulation advantage innovation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. , , ,

2. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. to identify entertainment industry based on importance spare to create to appoint to develop organization to deal with planning 59

ADDITIONAL ASSIGNMENTS

3. 1. 2. 3. 4.

, . This letter I have written will be sent tomorrow. This letter will be very important for me. This letter was about my life in London. The engineers were shown a new model of the computer. The engineers developed this new project in September. The project was new for us. The work will have been completed by the end of the month. You are to complete the work as soon as possible. He must have completed the work. We have been discussing this problem since early morning. The problems will be discussed at the conference. The problem to be discussed at the conference is of great importance. BLOCK 3

1. , : lead to, technical, human, to engage in, conceptual, related to, to carry out. In addition to having a knowledge base, managers need three key types of skills the various functions of management. A skill is the ability in a set of behaviors that are functionally one another and that a desired performance levels in a given area. For managers, the three key skill types are , , and . 2. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. . customer to be related to technical skills proficiency to associate to develop community to recognize to take actions appropriate 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. , , .

3. Infinitive . 1. He wanted me on Sunday. a) ome b) to come c) came 2. I saw him the room. a) nter b) to enter c) entering 3. We expected them soon. a) rrive b) to arrive 60

ADDITIONAL ASSIGNMENTS

4. The manager ordered the goods at once. a) to load b) loaded c) to be loaded 5. I rely on you it in time. a) do b) to do c) did 6. He is said in Kiev. a) live b) to live c) living 7. He seems English well. a) know b) to know c) knew 8. They are likely soon. a) come b) to come c) came 9. You had better there at once. a) go b) to go c) went 10. They make me this letter. a) write b) to write c) wrote BLOCK 4 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. . - , 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. executive executive director work force chief general manager work-place division manager senior vice-president supervisor functional area managerial job work team

2.

. .

Senior vice-president, chief executive officer, work-place, executive, executive vice-president. 1. 1. 2. 3. 4. 5. 6. 7. 8. , Participle 1 Participle 2. (to drown) That brave man once saved a _____ girl. (to interest) She is _____ in stories about great people. (to fly) Have you ever seen a _____ dog? (to wash) The boy ______ the car around the corner is my brother-in-law. (to travel) Anyone _____ to a foreign country needs special paper. (to please) I am sure your teacher is ______ with your English. (to cry) We couldnt sleep the whole night because there was a baby _____ in the next room. (to spill) Dont cry over _____ milk. 61

ADDITIONAL ASSIGNMENTS

BLOCK 5 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. . production operations management 1. primary goods and services 2. to involve 3. , to exist 4. , to relate 5. service industry 6. to track 7. facilities and equipment 8. to encompass 9. to store 10. 11. 12. , . He (to understand) you if you (to speak) slowly. If I (to have) enough money, I (to buy) this overcoat. The secretary (to send) the telex if the manager (to ask) her. I (not to be) late for work yesterday if I (to have) an early night the day before yesterday. If we (to stay) in Las Vegas longer, we (to lose) all our money. They (not to be pleased) if we (came) without asking. What (to happen) if there (to be) a serious nuclear accident? They (to pay) him if he (to finish) his work. He must be more careful, unless he (to want) trouble. If I (to know) that was going to rain, I (to take) an umbrella. . , . , , - . , . . ; . , . , ( !), . BLOCK 6 1. 1. 2. 3. . , 62 1. stuffing needs 2. downsizing 3. to comprise

2. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 3. 1. 2. 3. 4. 5. 6. 7.

ADDITIONAL ASSIGNMENTS

4. 5. 6. 7. 8.

, , ,

4. 5. 6. 7. 8. 9. 10.

to be famous for line managers to be responsible for to coordinate acquisition to overview to contribute

2. : To overview, to evaluate, to reveal, to evolve, to include A. to comprise, to predict, to estimate, to learn, to develop, to find out, to forecast, to appreciate, to discover. 3. 1. 2. 3. 4. : to be famous for; to be responsible for; to contribute; tarnished image. BLOCK 7 1. 1. 2. 3. 4. 5. 6. 7. 8. . , , , , 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. promotion acquisition to gain ill-fated write-off Information power slowdown bonus revenue to train

2. 1. 2. 3.

, .

These business matters just (to clarify) by the members of this firm. Most of our stocks (to destroy) two weeks ago when a fire (to break out) in our factory. A number of European countries (to buy) regularly from Smallcrown and your products (to value) highly in Germany. 4. The production (to increase) in the near future. 5. The answer to the Buyer (to send) just. 6. Many kinds of cars (to produce) at the plant now. 7. Many contracts (to sign) by our company last year. 8. The goods (not to deliver) in time because the company was heavy with orders. 9. The contract form (to study) before the documents were signed. 10. The latest catalogues (to study) before our manager went on business. 63

ADDITIONAL ASSIGNMENTS

3. 1. 2. 3. 4. 5.

. -. . . . , . BLOCK 8

1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2. 1. 2. 3. 4. 5. 3. 1. 2. 3. 4. 5. 6.

. , retailer to take step 1. 2. 3. 4. 5. 6. 7. 8. to associate with appropriate ultimate outlet ontrolling to run ounterpart to ally

, . He didnt repeat his question. a) able to b) must c) have to He go out for a walk. a) should b) are able to c) have to All of you be in time for classes every day now. a) have to b) had to c) need I come to see you last night. a) cannot b) mustnt c) couldnt The concert begin at 7 yesterday. a) must b) should c) was to d) has to d) were able to d) will be able to d) should d) will have to

. . . . , . ? .

64

ADDITIONAL ASSIGNMENTS

BLOCK 9 1. 1. 2. 3. 4. 5. 6. 7. . communication managerial communication verbal communication common meaning policy manual written communication nonverbal communication 1. 2. 3. 4. 5. 6. 7. 8. 9.

2. 1. 2. 3. 4. 5.

. , 1. 2. 3. 4. 5. 6. 7. to involve shortcomings layout transmission deficience implementation to disseminate

3. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 4. 1. 2. 3. 4. 5.

Participle Participle 2, : to disappoint, to excite, to bore, to interest, to confuse, to surprise, to tire, to amuse. The instruction was and I did something wrong, perhaps I simply misunderstood it. The situation was very . I didnt know what to say or what to tell. Come here, dont be . One must be responsible for what one does. The little girl was the most child Ive ever seen: so funny were her little tricks. I cant tell you how I am. Lets better go and have a cup of coffee somewhere. Most people were that he won the championship. Ive had a very day at work today and I want to go to bed. Are you or were you expecting this news? She is very because she is going to New York this afternoon. Whenever you feel you may leave at once. . . . , , . . ? , . , , , .

65

ADDITIONAL ASSIGNMENTS

BLOCK 10 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. . inventory to be engaged to vary to affiliate abnormal far-off extent to involve to subscribe executive 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. ( ) , ,

2. 1. 2. 3. 4. 5.

. 1. 2. 3. 4. 5. 6. 7. perspective to subscribe executive to assume rapidly far-off boundary

3. 1. 2. 3. 4. 4. 1. 2. 3. 4. 5.

. to be engaged; perspective; to involve; to be located in. , Passive Infinitive. , . , . , ? , . , .

66

( )
Grammar 1. , . : , 9) f. 1) This function also includes considering a) what must be done to encourage necessary , level of change and innovation. , . 2) Disney has been able to gain a competitive advantage in the family entertainment industry by creating amusement parks, movies, and products based on the renowned Disney characters. 3) In addition to having a knowledge base, managers need three key types of skills to carry out the various functions of management. 4) Some typical titles include such words as manager, director of, chief, department head, and division head. 5) The more that a leader is able to cultivate the liking, identification, and admiration of others, the greater the referent power. b) .

Final Test

c) . d) . e) , . f) , , ,
g) , , , .

6) In many cases, considerable time and effort are expended in preparing written communications.
7) Controlling also supports the organizing and leading functions by helping ensure that resources are channeled toward the main objectives.

67

FINAL TEST

2. : , 9) f. 1) To understand how management can influence in an organization, we need to define the organization. 2) They are to organize controlling function in international management. 3) He asked the audience to define the Human Research Management (HRM) more. 4) To make the process of management more effective we must include analyzing the competitive situation. 5) He explained the function of controlling for the second time for us to understand it better. 6) Controlling is the first process to sequlate organization aclivities so that actual performance conforms to expected organizational standards and goals. Vocabulary 1. , , . : , 9) . 1) organizing a) a process through which managers formulate and implement strategies geared to optimizing strategic goal achievement, given available environmental and internal conditions; b) skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world; c) an efficiency concept that gauges the ratio of outputs relative to input into a productive process; d) the management function that focuses on allocating and arranging human and nonhuman resources so that plans can be carried out successfully; e) communication by means of elements and behaviors that are not coded into words; f) the process of regulating organizational activities so that actual performance conforms to expected organizational standards and goals; g) an approach to international management whereby executives assume that practices which work in the headquarters or home country must necessarily work elsewhere. 68 a) b) c) d) e)

2) strategic management

3) controlling 4) nonverbal communication

5) ethnocentric orientation 6) productivity

7) conceptual skills

FINAL TEST

2. , . : , 9) . 1) tool; 2) human resources; 3) directions; 4) signal; 5) disadvantages; 6) multinational corporations; 7) sense of direction. a) When we accept a job with an organization, we usually are aware that we will be receiving related to our work from our immediate boss and others in the hierarchy. b) are not always easy to identify, since it may by difficult to determine from the outside how much control management maintains over the policies of affiliates or whether management actually uses a global perspective. c) Written communication also has several , including the expense of preparation, the relatively impersonal nature of written communications, possible misunderstanding by the receiver, and the delay of feedback regarding the effectiveness of the message.
d)Line managers ultimately are responsible for the effective utilization of within their units and, thus, carry out many aspects of the HRM process, particularly as they relate to implementing strategic plans.

e) Another reason for the importance of strategic management is that it provides a so that organization members know where to expend their efforts. f) Feedback from the control process might the need to reorganize, provide more training to workers, clarify communications, increase leadership influence, or take other actions associated with the respective organizing and leading functions. g) Productivity can be a useful for managers because it helps them track progress toward the more efficient use of resources in producing goods and services. Text 1. . Management Skills The three levels of management also differ in the importance attached to the three key management skills: technical, human, and conceptual. Generally, conceptual skills are most important at the top management level. The reason is that top managers have the greatest need to see the organization as a whole, understand how the various parts of the organization relate to one another, and associate the organization to the world outside. In contrast, first-line managers have the greatest need for technical skills. The logic here is that it is the first-line managers who directly supervise most of the technical and professional employees who are not managers. On the other hand, middle managers often may need to have technical skills that are at least sufficient to assist in communicating with subordinates and recognizing major problem. Even top managers must have some technical skills, particularly when technology 69

FINAL TEST

is an important part of the products or services their organizations produce. Otherwise, upper-level managers will have difficulty fostering innovation, allocating resources efficiently, or devising strategies to stay ahead of the competition. For example, when Chairman John Sculley joined Apple Computer, most of his experience was in marketing with PepsiCo and he knew little about computers. He realized immediately that he was not going to be able to function well without more technical knowledge. Im essentially an intuitive leader, and you can only be intuitive about something you understand. As a result, he quickly initiated an extensive effort to boost his knowledge of computer technology through such steps as arranging for tutors, reading books, and talking with knowledgeable staff members. Interestingly, all three levels of management must have strong human skills because they all must get things done through people. In fact, in one recent study, managers at all levels rated human skills as most important for good job performance. Ironically, individuals often are promoted into first-level management because they have good technical skills, without adequate consideration being given to the adequacy of their human skills. Individuals who lack sufficient human skills usually run into serious difficulties attempting to deal with individuals inside and outside their work units.

70

( )
The Verb / / : ( ); he works; ; he can work; -; he is a student; ; he is reading.

Grammar Reference

1) 2) 3) 4)

, - . , , , . - : Indefinite, Continuous, Perfect, Perfect Continuous. - Indefinite (or Simple) Past Future I He She asked We You They He will She ask We shall You will They I shall

Present ask

He asks She We You ask They

Indefinite : 1) ; 2) , ; 3) .

Present I am He is She We You are They asking

Continuous (or Progressive) Past Future Continuous : 1) , I shall be I - He was He asking ( ); will be She She 2) ; We We shall be asking 3) , You were You will be asking They . They asking

71

GRAMMAR REFERENCE

Present He asked has She We You have asked They I have Past had asked We You They I He She Perfect Future

Perfect : 1) , ; 2) Past Future Perfect , .

I shall He have asked will She We shall You have asked will They

Present I have He asked has She been We You have been asked They
been

Past I He She had been We You They

Perfect Future I shall He have been will asking She We shall You have been will asking They

Perfect Continuous , - , (for two hours 2- ; since 1941 c 1941 ).

, , ; , , , . : / Active Voice / / Passive Voice /

to be , , Past Participle (Participle II) c (. Table 1).

72

GRAMMAR REFERENCE

The Indefinite Tenses in the Passive Voice Table 1 Affirmative Sentence Interrogative Sentence Present Am I asked? Is he she we you they Past I He She I he she we you they I He She We You They asked? Negative Sentence

I am asked He She We You They is asked

I am not asked He She We You They is not asked

are asked

Are

asked?

are not asked

was asked

Was

asked?

was not asked

We You were asked. They

Were

asked?

were not asked.

Future I shall be asked. He will be asked. She We shall be asked. You will be asked. They Shall Will Shall Will I be asked? he be asked? she we be asked? you be asked? they I shall not be asked. He will not be She asked. We shall not be asked. You will not be They asked.

73

GRAMMAR REFERENCE

The Perfect Tenses in the Passive Voice

able 2

Affirmative Sentence I have He has She We You They

Interrogative Sentence Present Have I Has he she Have we you they Past been asked?

Negative Sentence I have He has She not been asked.

been asked.

have been asked.

been asked?

We You have not been They asked.

I He She We You They

had been asked.

Had

I he she we you they

been asked?

I He She We You They

had not been asked.

Future I shall He will She We shall You will They Shall Will Shall Will I he she we you they have been asked? I shall He will She We shall You will They not have been asked.

have been asked.

: Perfect Passive , . Many new houses have been built. .

74

GRAMMAR REFERENCE

The Continuous Tenses in the Passive Voice Table 3 Affirmative Sentence Interrogative Sentence Present Am Is I he she we you they Negative Sentence

I am He is She is We You They

being asked now.

being asked?

I am He is She is We You They

not being asked.

are being asked.

Are

being asked? Past

are not being asked.

I He She We You They

was being asked.

Was

I he she we you they

being asked?

I He She We You They

was not being asked.

were being asked.

Were

being asked?

were not being asked.

Future . Future Continuos Future Indefinite. : Continuos Passive - . : New houses are (were) being built. ().

75

GRAMMAR REFERENCE

, , , , . 1. (), : ) to be Present Subjunctive be : I be we be He, she, it be you be they be ) to have Present Subjunctive have : I have, he have ) Present Subjunctive -s 3- : he speak ) to be Past Subjunctive were : I were, he were 2. (), should would can, could, may, might ; .
P resent S ubjunctive P ast S ubjunctive P erfect S ubjunctive I , he , she b e , ask , have w e , you , they I , he , she w ere , asked w e , you , they
I , he , s he h ad b een , had asked we , you , they

should Infinitive should Infinitive would would + + Indefinite P erfect

. Present Subjunctive Past Subjunctive , Perfect Subjunctive . . 76

GRAMMAR REFERENCE

: : Success attend you! : ! : 1. , it is necessary, it is important. : It is necessary that one of the surfaces of a disc be made of some material that has a low coefficient of friction. : , , . 2. : : They recommended that thorough laboratory tests should be conducted before the system is installed in the computing centre. : , , . 3. that, so that; lest . : They give him a list of instructions lest he should repeat the mistake made in his previous work. : , , . 4. as if, as though . : He listens as if he were greatly interested in our conversation. : , . 5. though, although (); even if, even though (), (); whenever ; whatever, no matter what ; wherever, no matter where ; whoever, no matter who . : Whatever the nature of the tubes and the arrangement of the electrode be, an emitting electrode should be present. : , . 77

GRAMMAR REFERENCE

6. . 2- : ) , . should would + Infinitive, Past Subjunctive. . : If you increased the order they would reduce the price. : , . ) , . should would + Perfect Infinitive, Perfect Subjunctive. , ). : If we had come some minutes earlier we should have met the delegation at the plant. : , . : , , . . : If further information is required we shall send it immediately. : . if ; unless ; provided (that), providing (that), on condition (that) , ; in case (that) ; supposing (that), suppose (that) , , . : I should not have been able to realize what a wonderful instrument it was if I had not seen it in action. : , , . : They would finish the work in time, provided they had the necessary material. : , ( ) . : provided - . ) provided - Past Indefinite: 78

GRAMMAR REFERENCE
II

: We provided the expedition with all the necessary equipment. : . ) provided : : The expedition provided with all the necessary equipment will start tomorrow. : , , . Modal Verbs / / , , . , , : to be able to to have to. . Infinitive Passive Perfect Infinitive.
1. CAN to be able (to) 2. MAY to be allowed (to) 3. MUST to have (to) to be (to) should ought (to) to be (to) obliged Present can
am is able ( to) are
.. II

Past could
was able ( to) were

Future shall be able ( to ) will

shall be allowed ( to ) will

may
am is allowed ( to) are

might
was allowed ( to) were

must have (to) has (to) am (to) is (to) are (to) should ought (to)
am is obliged ( to) are

had (to)

shall have ( to ) will

was (to) were (to)

shall be obliged was obliged ( to ) were will ( to )

79

GRAMMAR REFERENCE

Infinitive Passive Infinitive Perfect Infinitive Passive , , , . , . : The man was so excited that he could not be understood. : , . must, may might Perfect Infinitive , , , . : He must have lost his book somewhere. , , -. : He may have got the article he needed. , , , . can could Perfect Infinitive . : He cannot have made such a serious mistake. , . ought (to), should, could might Perfect Infinitive , , . : You should have told her the truth. . : He could have written that letter, he had a lot of free time. , . The Participle / / Tense Voice Indefinite Perfect Participle I Active asking having asked Participle II Passive 1. ed for regular verbs e.g. asked being asked having been asked 2. specific form for irregular verbs e.g. written spoken etc.

80

GRAMMAR REFERENCE

Participle I 1. , . . , . The reading boy Participle I . Participle I , . . The boy reading a book is my friend. , , . 2. . I see him speaking with a manager. , . 3. , , . Having discussed this problem they came to the conclusion. , . 4. Participle I (The Absolute Participle Construction), .. , , , . , . Weather permitting, well continue our search. , . Participle II Participle II : 1. . -, -, -, -() (). The translated book . 2. . The book was translated last year. . 81

GRAMMAR REFERENCE

3. / , , . /. Participle II if, unless, when. If translated well the book will be a success. , . 4. Participle II , Participle I . The book translated, we shall be able to buy it. , . The Gerund / / Tense Voice Indefinite Perfect Active asking having asked Passive being asked having been asked

, , . , , : , , , . , . Reading English books is useful. () . I like reading (). () : , , : to avoid (); to excuse (()); to need (); to want (). to enjoy ( ); to intend (); to require ();

, . 82

GRAMMAR REFERENCE

, : , ; , ; , ; , .. Johns returning home so late stayed unnoticed. (, , .) His returning home so late surprised nobody. ( .) The Infinitive / / : Indefinite Continuous Perfect Perfect Continuous Active to translate to be translating to have translated to have been translating Passive to be translated to have been translated

, . Infinitive Indefinite , , - . Infinitive Continuous , - . Infinitive Perfect , , - . Infinitive Perfect Continuous , , - . , , , , . : Any mistake which is present in the calculation must be removed. : , , . . : 1. ( ). : To prove this law experimentally | is very difficult. : .

83

GRAMMAR REFERENCE

2. ( , ). : Your work | is to observe | the rise of inflation. : , . 3. , , . : He | is to make | the experiment. : . 4. ( ). : He | asked | to define the unit of measurement more accurately. : . , . : The students were glad to have obtained such good results in the latest tests of the new model. : , () . 5. . ; , . : To make the price higher | we must improve the quality of goods. : , . : We go to the University to study. : , . 6. . . , , . : Fielding | was the first | to introduce into the English novel real characters in their actual surroundings. : , . : Experiments have shown that | the amount of work | to be used for producing a given amount of goods | is the same under all conditions. : , , , . 84

GRAMMAR REFERENCE

Perfect Infinitive Passive , , , , . : Another important factor to have been referred to in that article was that there are many functions of money. : , , , . , , , , . (The Objective with the Infinitive) , . . : to want, to suppose, to find, to expect, to believe .. , - , . : We know him to be the first inventor of an electrical measuring instrument. : , . to, , : to hear, to see, to feel, to watch . : We see the computer work well. : , . (The Nominative with the Infinitive) , . , to seem, to appear to be likely, to be sure . . 85

GRAMMAR REFERENCE

, - (, , ..). , - . : All these goods are known to be produced by our firm. : , : Russian scientists and inventors are known to have discovered electrical phenomena of the greatest importance. : , .

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( )
1. Ford at Dagenham One of the plant managers, working with his area managers at Fords Dagenham plant, had devised a plan for reducing costs by reorganising the work in the area of machine operation. The problem was that if the plan was to work it required two important changes from the workforce first their co-operation in moving from the production of one set of parts to the production or another set half-way through each week. Second, it required the introduction of a new twilight shift. No extra money was on offer nor were any other inducements held out. The case had to be sold direct to the workforce (some 80 people) by the relevant area manager. This was to be attempted at a special meeting in the old canteen at the start of the morning shift. At the appointed hour, the workers were assembled and seated in a rather cold and uncomfortable setting, unconducive to extended debate. The shop stewards for the area were seated out at tile front. The area manager arrived chauffeur-driven in one of the plants electric vehicles. Flanked by section heads he strode to the front and commenced his delivery. The style was relaxed, down-to-earth, occasionally jovial, but very direct. In essence, the problem was explained as uncompetitive costs in the production of two power-train assemblies. The danger of at least one or these ceasing production altogether, unless the uneconomic low volume levels could be compensated for by more flexible switching each week between one job and another was explained. The solution was then described. This involved the introduction of a swing shift and the necessity for the shift, on certain days of the week, to be ready to finish the scheduled run in Power Train I and relocate themselves to a different area of the factory to commence work on Power Train II. Questions were then invited and the area manager fielded these himself. One issue of concern was the extra time that would be needed reporting to work and in lost break time because of the distance between the two work locations. The area manager dealt with this by promising to keep it under review during the first few weeks of the new work scheme. After about 40 minutes the area manager and the rest of the management team departed and the shop stewards were left to address the meeting. The tone was essentially a realistic one of the economics of competition and the poor state of Power Train I because of its age and its low volumes. While some minor problems were noted with the management plan, the overall message was that rearganisation was necessary. There was very little opposition from the floor. A vote was taken and the plan was accepted almost unanimously. (a) (b) (c) (d) (e) Identify the aspects of management that are taking place in this situation. What leadership qualities did the plant manager and the area manager demonstrate? What type of leadership style is the area manager adopting? What factors may have influenced this choice of leadership style? Use the leadership theory of Fiedler to explain why the strategy adopted by the area manager was successful. 2. Marketing the Theatre In all branches of the theatre today, marketing expertise is crucial. When planning your strategy, the first step is to read the play which you are going to be marketing. When you know a show it is sometimes easy to find strong selling points. 87

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Use these selling points in the design your posters and other publicity material. These must be got out in good time, at least six weeks before the show is due to open. Try to find ways to maximise local publicity about the production: does something about the play itself, or its cast perhaps, give you a key which will unlock local radio and press coverage? It is important to think of possible group bookings for example, you can do useful business with school coach parties when you have a play which is on the A* ) level syllabus. There will probably be a box office revenue target (largely determined by the production cost of the play) and this will influence prices. Market research of your potential audience is useful before setting prices. The careful use of discount prices and concessions can be an important tactic. It is interesting to consider Table 1 and the range of average ticket prices charged for the different types of production and the varying extent to which use is made by box offices of discounting. Table 1 Average Ticket Prices and the Average Discount on Ticket Prices, 1991 Type of Production Modern Drama Comedy Modern Musicals Traditional Musicals Revue Opera Ballet Classical Plays Childrens Shows / Pantomime Thrillers & Others Average Ticket Price () 12.59 13.08 18.28 17.26 15.11 30.20 21.05 11.82 10.79 13.28 Average Discount on Ticket Price (%) 10.1 8.5 1.5 9.8 0.7 8.5 3.8 17.5 4.3 5.5

At the box office, the theatre business depends, to some extent, on the custom of tourists, particularly those from the United States. However, according to the Society of London Theatres, the relative importance of tourists has been declining. While 42% of the West End audience came from overseas in 1985, this had fallen to 32% by 1991. Theatre managers do not like having to rely on tourists because it means that there will be regular seasonal troughs in demand when the number of foreign visitors falls off in the winter. For this reason, it has been quite common for up to half a dozen shows to be forced to close during the first few months of the year. Moreover, there are inevitably going to be bad years for tourism, for example, during periods when the Dollar is weak, or when the threat of terrorism in Europe dominates the headlines (such as in the periods after Hie Libyan bombing in 1986 and the Gulf War in 1991) and serves to discourage people from travelling abroad. Case Study Question 1: You are the business manager of your school or college play which is to run for a week in the main hall. This means that you have the take of selling 1,000 tickets. What are the main marketing steps you must take? Case Study Question 2: You decide to set your seat prices so that the production will breakeven. What are the main fixed and variable costs that you should expect to incur.
*)

A advanced .

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3. High Lane VI Form College High Lane VI Form College acquired designated status on 1st April 1993. This meant that control for the funding of the college moved from the local authority to central government. In addition, the complete management of the budget would be carried out by the principal of the college rather than the local education authority. Finances for the college would be allocated by the Further Education Funding Council and could depend, in the main, on the number of students it could attract and on whether the college had achieved its mission statement. This is a document that set out of colleges future goals and objectives in terms of curriculum development and delivery and the pastoral programme for student guidance and support. The principal and governors of the college decided to restructure in order to meet the challenge of the future. In the past the structure had four levels the senior management team (the principal and two viceprincipals), senior tutors (responsible for the pastoral programme), heads of departments and main scale teachers. It was recognised that the senior management team needed to be expanded. Senior tutors were given extra responsibilities and made part of the senior management team. In addition a new team of curriculum leaders (CLs) was created. The team was made up from heads of departments in the different curriculum areas, such as the social sciences and sciences etc. and was responsible for curriculum development and delivery. Much of the success of the college would depend on how well this group worked together. The group certainly had a variety of personalities in it from those with new, innovative ideas to those that more concerned with administration and day to day problems. The group met formally once a fortnight to discuss issues concerning a quality curriculum. It became apparent, however, that the meetings rarely achieved concrete suggestions for future action. The meetings seemed to be used as talking shops for curriculum leaders to air grievances about the happenings of the week. Some of the curriculum leaders were also part of an informal group of friends who would socialise at lunchtimes and after college. It was often at these informal gatherings / meetings that the real issues were raised and ideas discussed. Other curriculum leaders who were not at such gatherings would usually have any important issues raised communicated to them through the grapevine. The informal meetings became a focal point for CLs to attack the lack of focus in the official meetings and also the fact that their ideas were very rarely accepted by senior management. They felt that senior management was made up of individuals who had caused a decline in the number of students by their inaction over the last five years. Their main complaint, however, was that although they had been assured by the principal that they would be the ones who would make decisions on curriculum matters, the senior management team would often intervene and veto their proposals. For example, CLs suggested that gNVQs (general national vocational qualifications) should be more fully developed in the college to attract students that had normally gone to the local FE colleges. This idea was, rejected by the senior management team as not fitting into the academic tradition of the college. Joan, the CL for Economics and Business, felt exasperated by this decision. She said: CLs were meant to be part of the management of the college with responsibilities for curriculum development and delivery. We meet formally and informally, communicating in a variety of ways to each other, trying to advance a common view on curriculum development. But at times we just dont seem to have the authority to make things happen. I just dont know what we can do. (a) What new formal groups did the Principal and Governors set up in April 1993? (b) How did communication take place in formal and informal groups at High Lane? (c) Comment on the likely effectiveness of: (i) formal groups; 89

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(ii) informal groups; at High Lane. (d) What problems might High Lane face as a result at the way group decision making is organised? (e) Suggest 2 methods High Lane management could have used to solve the problems suggested in your answer to question (d).

4. MORE THAN JUST A LEISURE PARK The Dome Leisure Park is Europes largest multi-facility leisure development under one roof, with a total floor area of 15 100 square metres. Since its opening in October 1989, it has regularly welcomed more than one million visitors through its doors per year, making it one of the UKs top five leisure attractions, ranking it alongside Alton Towers and the Chessington World of Adventures. The Dome is located in Doncaster, South Yorkshire. Its site gives quick and easy access to the Ml, M18, and A1 (M) motorways, thus giving good communication links to surrounding towns and cities such as Sheffield, Leeds, and Nottingham. Alternatively, the nearby mainline railway station offers rail links to London, Birmingham, Manchester, and Edinburgh. The land on which The Dome is built and surrounding areas comprise 350 acres of council owned waste land on the Southern edge of the town, opposite the prestigious race course. The Dome can therefore be expanded without complication, or nearby land sold to other private sector investors attracted to the area. The Aims of the Dome The Dome was a Doncaster Metropolitan Borough Council (DMBC) initiative, first conceived in 1985. It was designed, built, and opened at a cost of 25 million, which was wholly funded by the council through the receipts of sales of land. The main objectives of The Dome are: 1. To offer the residents of Doncaster a dramatically different leisure option. 2. To position Doncaster as the focal point for leisure and tourism following the decline of the towns more traditional industries of heavy engineering and mining. 3. To act as a catalyst for the economic and qualitative regeneration of the surrounding area and to act as an expression of confidence in the future of the community. 4. To attract investment to the town. The Mission Statement of The Dome is: To enhance the quality of life of residents and visitors to Doncaster and South Yorkshire by means of a wide range of well publicised, affordable and enjoyable leisure opportunities in an attractive, healthy and safe environment. The Management of The Dome The council knew that much depended on the success of The Dome, and as such, good management was imperative if they were to justify the initial cost the development demanded. They wanted the Dome to not only be a successful leisure centre, but to provide the catalyst in attracting other developers and investors to the town. In short, successful management could turn the initial 25 million into investment, 90

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rather than expenditure. With this in mind, a private limited company, Dome Leisure Management, was formed to oversee the commercial viability and day-to-day running of the project. Doncaster Metropolitan Borough Council (DMBC) recognised that it required the highest levels of commercial management and decided that a stand alone operation, whereby a Private Limited Company runs the concern for the Council, provided the best opportunities for success. A similar strategy is illustrated by the success of the council-owned, privately-run, race course in the town. The Marketing Strategy When the Dome first opened the marketing of the Centre as a whole, and of specific events, was of prime importance. Without a high company profile and influx of customers, the Dome would fail to satisfy its aims and objectives. Due to this, the management enlisted the specialist skills of Colbear Dickson, an external marketing agency, to work with a group of managers including the General Manager and the Marketing Department. They would identify promotions and initiatives for the coming months for the Marketing Plan. Each year the Marketing Department has had a different goal to reach in promoting The Dome. In its first year it aimed at creating a corporate identity, in a bid to get the name of The Dome known throughout the region, if not the country. In the second year, its task was to promote day-trip business and the third year concentrated on promoting corporate business. Market research is carried out periodically to ascertain the needs of the market. Access and Visa customers are sent mail shots with information regarding future events, but no system is set up as yet to monitor the success of this initiative. The role of the Marketing Department focuses very much on the promotion of The Dome and public relations activities. In addition, several sales methods have been constructed as a result of market research, such as offering joint tickets to both the water and ice facilities, as well as a Kids Club aimed at the younger, energy-packed visitor. Now that the Leisure Park has an established track record. The Dome Management rely to a certain extent on the name and The Domes reputation to do much of the marketing and selling for them. A large amount of the Domes publicity comes in the form of press releases focusing on specific events and new initiatives being launched, in the hope and expectation that local newspapers will use the story, thus providing the public with information about the centre. This tactic enables the Dome to reach a large audience at little or no cost. Local press and radio advertising tends to focus on specific high profile events, such as forthcoming concerts and basketball matches. Leaflets advertising the general facilities offered by the Dome are displayed in tourist offices throughout Yorkshire and Humberside. The Business Operations of the Dome Apart from being successful in attracting customers, the Dome also needed to be seen as having a strong corporate identity, in order to give the confidence of potential investors in the area. After all, it is to a large extent the Domes customers that feed all the other commercial developments on the site. To this end, the Dome needed a resourceful management and competent staff. Senior management posts were filled largely with personnel from outside the local community with experience of the leisure industry, whereas positions lower down the hierarchy were filled from the large pool of labour available locally. This enabled the Dome to find an acceptable balance between experienced, specialist staff brought into the area, and personnel from the local community. 91

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Any senior positions becoming available now are advertised internally in the first instance. This offers several advantages to the company, in that it motivates staff as they believe that they have a chance to succeed in the organisation. Also, the induction period (the first few weeks in the new job) is made smoother as the employee is already familiar with the working environment, its people and its policies. Disadvantages of promotion from within are that no new blood is brought into the company which could lead to a lack of innovative new ideas. If internal advertising for management level positions fails to provide suitable candidates, the Dome management prefer to headhunt in order to save time and expenditure involved with advertising externally. The headhunting process involves contacting people known to the staff who are working in, or have worked in, a similar position within the leisure industry. They can be attracted to the Dome by offering larger salaries, additional benefits, or better future prospects. Headhunting is particularly suited to senior positions or ones where the post holder requires specialist skills or knowledge. The Dome management place great importance on the induction, training and development of all staff. Every employee within the organisation receives an induction period upon taking up employment. The amount of time taken in induction will depend on the position within the organisation. An annual appraisal system is used thereafter to assess an individuals overall performance. This gives employees a formal opportunity to discuss with their managers their role within the company, where they think their job is going, and how it could be improved to the benefit of themselves and the organisation as a whole. A common training theme runs throughout all levels of the hierarchy. In 1992, for example, training concentrated on improving quality; whereas in 1993 training aimed at improving sates techniques. In addition to this themed training, job holders also receive a training programme tailored to their needs. Most training is carried out in-house, giving the advantages of minimal time spent away from the workplace and avoiding the expense of hiring an external training agency. The Dome is currently carrying out a Training Needs Analysis, which is partly funded by the Doncaster and Barnsley Training and Enterprise Council TEC. Due to the dynamic nature of the leisure industry, the Dome management need to effectively manage change in order to maintain their competitive edge. most changes implemented tend to be customer led. The ethos is that if customer demand is sufficient, the management will try and ensure that the facility or activity is included. It is not just current customers wishes that need to be met, however, in order to sustain the growth needed to meet the councils expectations. If the Dome is to live up to all of its original aims, it must evolve to become a Leisure Park large enough to pull visitors from further afield. With a proposed Channel Tunnel Terminal being sited at Doncaster, it is now feasible to expect visitors from France and the rest of the EU. Because of this the council is continually updating its proposed expansions of the site. Current initiatives involve the development of an artificial lake for water sports, a business and office complex, a holiday village, and an all-seater sports stadium. If it is to continue to attract private sector development, it must continue to invest in, and expand on, the current provisions offered. Such a large scale development is obviously likely to upset some people in the local community, due to problems such as increased traffic, noise, litter etc. Dealing with such groups is seen largely as a public relations exercise. If the Dome management and the council give them a fair hearing and lay down the basis of, and advantages of their proposals, or even bow to the wishes of local groups where this seems to be the best strategy, the council will maintain the much needed respect and support of the local residential and business community.

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Private Sector Investment For the Dome to provide maximum benefit for the local community, and Doncaster as a whole, it needed to attract private sector investors to the area. This was the best way for the DMBC to recoup their initial investment, as they sold off land to companies attracted to the area. The revenue from land sales far outweighs profits obtained from the operations of the Dome. This has already paid off in the form of a 50 bedroom Campanile Hotel situated in two acres of land. The French hotel chain has the scope to add another 50 bedroom annexe to their existing 1.2 million development. Just prior to the official opening of The Dome, Keith Brown Properties Ltd opened a 1.5 million Ten Pin Bowling Alley covering one acre and providing 60 jobs. In 1990 an Asda Superstore opened covering 12 acres. Warner Brothers soon followed with a multi-screen cinema development situated on a six acre site at a cost of 6.5 million and providing 100 jobs. The 500 full time jobs and 100 part time positions created by the 55 million worth of private sector investment in the first phase of the Parks development has given a boost to other commercial concerns in the local economy. Unemployment has fallen, spending power has increased, and this spending has led to further employment in other businesses. The council are hoping that further development of the park will transform this area of Doncaster into a role model of private and public sector co-operation in economic revival. Conclusion The Doncaster Dome was never intended to be a means to an end. It was never intended to be merely a leisure park. It was intended to trigger new hope and investment for the town. So far it seems to have worked. The General Manager of the Dome was right when he said The Dome is a household name on nil regional lips, is well known in the Leisure industry, is admired by its rivals and is the envy of other Borough Councils. It is certainly that, and to the people of Doncaster, much more besides. It has provided hope in what was otherwise a seemingly bleak future for a town where traditional industries (e.g. mining and engineering) are in sharp decline. Questions for discussion 1. Why do you think that the Doncaster Metropolitan Borough Council decided that a stand alone operation, whereby a Private Limited Company runs the concern, provided the best opportunities for success? What alternatives were open to the Council? 2. What are the strengths and weaknesses of the Domes marketing strategy? What improvements could be made in marketing both the Dome, and the Leisure Park as a whole? 3. Explain the links between the Public and Private sector that have emerged as a result of the Leisure Parks development. What benefits has each received as a result of this co-operation? 4. What benefits has the Leisure Parks development brought to the town of Doncaster? Are there any groups in the community that may feel threatened by the development? 5. What were the opportunity costs of the Dome? How would you justify the expense to opponents of the Domes development? 6. Conduct a S.W.O.T. (Strengths, Weaknesses, Opportunities, and Threats) Analysis for the Dome Leisure Park. From your findings, do you feel that the Council were justified in investing 25 million in the project? 93

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What is management? Unit 2 explained that managers are an important group involved in business activity. It is difficult to define exactly what is meant by management. However, many agree that managers are responsible for getting things done usually through other people. The term manager may refer to a number of different people within a business. Some job titles include the word manager, such as personnel manager or managing director. Other job holders may also be managers, even though their titles do not say it. It could be argued that managers: act on behalf of the owners in a company, senior management are accountable to the shareholders; set objectives for the organisation, for example, they may decide that a long term objective is to have a greater market share than all of the companys competitors; make sure that a business achieves its objectives, by managing others; ensure that corporate values (the values of the organisation) are maintained in dealings with other businesses, customers, employees and general public. The functions of management Henri Fayol, the French management theorist working in the early part of this century, listed a number of functions or elements of management. Planning. This involves setting objectives and also the strategies, policies, programmes and procedures for achieving them. Planning might be done by line manners who will be responsible for performance. However, advice on planning may also come from staff management who might have expertise in that area, even if they have no line authority. For example, a production manager may carry out human resource planning in the production department, but use the skills of the personnel manager in planning recruitment for vacancies that may arise. Organising. Managers set tasks which need to be performed if the business is to achieve its objectives. Jobs need to be organised within sections or departments and; authority needs to be delegated so that jobs are carried out. For example, the goal of a manufacturing company may be to produce quality goods that will be delivered to customers on time. The tasks, such as manufacturing, packaging, administration, etc. that are part of producing and distributing the goods, need to be organised to achieve this goal. Commanding. This involves giving instructions to subordinates to carry out tasks. The manager has the authority to make decisions and responsibility to see tasks are carried out. Co-ordinating. This is the bringing together of the activities of people within the business. Individuals and groups will have their own goals, which may be different to those of the business and each other. Management must make sure that there is a common approach, so that the companys goals are achieved. Controlling. Managers measure and correct the activities of individuals and groups, to make sure that their performance fits in with plans.

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The management process Peter Drucker worked in the 1440s and 1950s as a business adviser to a number of US firms. He is credited with the idea of MANAGEMENT BY OBJECTIVES, used by some businesses today. Drucker grouped the operations of management into five categories. Setting objectives for the organisation. Managers decide what the objectives of the business should be. These objectives are then organised into targets. Organising the work. The work to be done in the organisation must be divided into manageable activities and jobs. The jobs must be integrated into the formal organisational structure and people must be selected to do the jobs. Motivating employees and communicating information to enable employees to carry out their tasks. Job measurement. It is the task of management to establish objectives or yardsticks of performance for every person in the organisation. They must also analyse actual performance and compare it with the yardstick that has been set. Finally, they should communicate the findings and explain their significance to others in the business. Developing people. The manager should bring out the talent in people.

Every manager performs all five functions listed above, no matter how good or bad a manager, Drucker suggests. A bad manager performs these functions badly, whereas a good manager performs them well. He also argued that the manager of a business has a basic function economic performance. In this respect the business manager is different from the manager of other types of organisation. Business managers can only justify their existence and authority by the economic results they produce. Being a manager In contrast with Fayol or Drucker, Charles Handy argued that any definition of a manager is likely to be so broad it will have little or no meaning. Instead he outlined what is likely to be involved in being a manager. The manager as a general practitioner Handy made an analogy between managing and staying healthy. If there are health problems in business, the manager needs to identify the symptoms. These could include low productivity, high labour turnover or industrial relations problems. Once the symptoms have been identified, the manager needs to find the cause of trouble and develop a strategy for better health. Strategies for health might include changing people, through hiring and firing, reassignments, training, pay increases or counselling. A manager might also restructure work through job redesign, job enrichment and a redefinition of roles. Systems can also be improved. These can include communication systems, reward systems, information and reporting systems budgets and other decision making systems, e.g. stock control. Managerial dilemmas. Handy argued that managers face dilemmas. One of the reasons why managers are paid more than workers is because of the dilemmas they face. The dilemma of cultures. When managers are promoted or move to other parts of the business, they have to behave in ways which are suitable for the new position. For example, at the senior management level, managers may deal more with long term strategy and delegate lower level tasks to middle management more often. If a promoted manager maintains a culture that she is used to, which may mean taking responsibility for all tasks, she may not be effective in her new position. 95

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The trust-control dilemma. Managers may want to control the work for which they are responsible. However, they may have to delegate work to subordinates, trusting them to do the work properly. The greater the trust a manager has in subordinates, the less control she retains for herself. Retaining control could mean a lack of trust. The leaders dilemma. In many firms, junior managers often want to work in project teams, with a clear task or objective. This can mean working outside the normal bureaucratic structure of a larger organisation. Unfortunately, there can be too many project groups (or commando groups) for the good of the business. The manager must decide how many project groups she should create to satisfy the needs of her subordinates and how much bureaucratic structure to retain. Managerial roles

Henry Mintzberg suggested that, as well as carrying out certain functions, the manager also fulfils certain roles in a firm. He identified three types of role which a manager must play. Interpersonal roles. These arise from the managers formal authority. Managers have a figurehead role. For example, a large part of a chief executives time is spent representing the company at dinners, conferences etc. They also have a leader role. This involves hiring, firing and training staff, motivating employees etc. Thirdly, they have a liaison role. Some managers spend up to half their time meeting with other managers. They do this because they need to know what is happening in other departments. Senior managers spend a great deal of time with people outside the business. Mintzberg says that these contacts build up an informal information system, and are moans of extending influence both within and outside the business. Information roles. Managers act as channels of information from one department to another. They are in position to do this because of their contacts. Decision making roles. The managers formal authority and access to information means that no one else is in a better position to take decisions about a departments work. Through extensive research and observation of what managers actually do, Mintzberg drew certain conclusions about the work of managers. The idea that a manager is a systematic planner is a myth. Planning is often carried out on a day-to-day basis, in between more urgent tasks. Another myth is that a manager has no regular or routine duties, as these have been delegated to others. Mintzberg found that managers perform a number of routine duties, particularly ceremonial tasks. Mintzbergs research showed that managers prefer verbal communication rather than a formal system of communication. Information passed by word of mouth in an informal way is likely to be more up to date and easier to grasp. Leadership The ability to lead within organisations is of growing interest to businesses. This interest has resulted from the need to lead companies through change, brought about by an increase in competition and a recessionary climate in the late 1980s and early 1990s. Earlier in this unit it was shown that a manager might have a leadership role. To be a good leader in business it has been suggested that a manager must know what direction needs to be taken by the 96

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business and plan how to achieve this. Leaders will also be able to persuade others that the decisions that they have taken are the correct ones. Leaders are often thought to be charismatic people who have something about them that makes them stand out from others. It has been argued that there are certain personality traits that are common to leaders. However, studies have failed to prove this is the case. In order to identify leadership, studies have shifted to examine what leaders, and in particular managers, do that is, what behaviour is associated with leadership. This is dealt with in the next sections. The qualities of leadership One approach to find out what makes good leaders is to identify the qualities that they should have. A number of chteristics have been suggested. Effective leaders have a positive self image, backed up with a genuine ability and realistic aspirations. This is shown in the confidence they have. An example in UK industry might be Richard Branson, in his various pioneering business activities. Leaders also appreciate their own strengths and weaknesses. It is argued that many managers fail to lead because they often get bogged down in short term activity. Leader need to be able to get to the core of a problem and have the vision and commitment to suggest radical solutions. Sir John Harvey-Jones took ICI to 1 billion profit by stirring up what had become a sleeping giant. Many awkward questions were raised about the validity of the way things were done, and the changes led to new and more profitable businesses on a world-wide scale for the firm. Studies of leaders in business suggest that they are expert in a particular field and well read in everything else. They tend to be out of the ordinary, intelligent, and articulate. Leaders are often creative thinking and innovative. They tend to seek new ideas to problems, make sure that important things are done and try to improve standards. One example might have been the restructuring of BHS by David Dworkin so that unsold stock did not remain on the shelves. Leaders often have the ability to sense change and can respond to it. A leader, for example, may be able to predict a decline of sales in an important product or the likelihood of a new production technique being available in the future. Leadership styles Another approach is to examine different styles of leadership. There is a number of styles that managers might adopt in the work setting. Table 1 shows the different ways in which leaders can involve others in the decision making process. Autocratic. An AUTOCRATIC leadership style is one where the manner sets objectives, allocates tasks, and insists on obedience. Therefore the group become dependent on him or her. The result of this style is that members of the group are often dissatisfied with the leader. This results in little cohesion, the need for high levels of supervision, and poor levels of motivation amongst employees. Autocratic leadership may be needed in certain circumstances. For example, in the armed forces there may be a need to move troops quickly and for orders to be obeyed instantly. Democratic. A DEMOCRATIC leadership style encourages participation in decision making. Managers may consult employees or could attempt to sell final decisions to them. It is argued that, through participation and consultation, employees know and believe the objectives of management because 97

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they have had some involvement with it. This will result in employees being more motivated and willing to work harder. Democratic leadership styles need good communication skills. The leaders must be able to explain ideas clearly to employees and understand feedback they receive. It may mean, however, that decisions take a long time to be reached as lengthy consultation can take place. Laissez-faire. A LAISSEZ-FAIRE type of leadership style allows employees to carry out activities freely within broad limits. The result is a relaxed atmosphere, but one where there are few guidelines and directions. This can sometimes result in pool productivity and lack of motivation as employees have little incentive to work hard. Table 1 Leadership style Type of leadership Autocratic Autocratic Persuasive Leader makes decisions alone. Others are informed and carry out decisions. Democratic Consultative Leader consults with others before decision is made. There will be group influence in the final decision, even though it is made by the leader. Laissez-faire Laissez-faire There is no formal structure to decision making. The leader does not force his or her views on others.

Method

Leader makes decisions alone. Others are persuaded by the leader that the decision is the right one, i.e. leader sells the decision to the group.

Factors affecting leadership styles The type of leadership style adopted by managers will depend on various factors. The task. A certain task may be the result of an emergency, which might need immediate response from a person in authority. The speed of decision needed and action taken may require an authoritarian or autocratic style of leadership. The tradition of the organisation. A business may develop its own culture which is the result of the interactions of all employees at different levels. This can result in one type of leadership style, because of a pattern of behaviour that has developed in the organisation. For example, in the public sector leadership is often democratic because of the need to consult with politicians etc. The type of labour force. A more highly skilled workforce might be most productive when their opinions are sought. Democratic leadership styles may be more appropriate in this case. The group size. Democratic leadership styles can lead to confusion the greater the size of the group. The leaders personality. The personality of one manager may be different to another manager and certain leadership styles might suit one but not the other. For example, an aggressive, competitive personality may be more suited to an authoritarian leadership style. Group personality. Some people prefer to be directed rather than contribute, either because of lack of interest, previous experience, or because they believe that the manager is paid 98

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to lake decisions and shoulder responsibility. If this is the case, then an autocratic leadership style is more likely to lead to effective decision making. Time. The time available to complete a task might influence the leadership style adopted. For example, if a project has to be finished quickly, there may be no time for discussion and an autocratic style may be adopted. Why do leaders adopt different styles?

A number of theories have been put forward to explain the most appropriate leadership style when dealing with certain situations or groups at work. Fiedler. In l976, F. Fiedler argued that it is easier to change someones role or power, or to modify the job he has to do, than to change his leadership style. From his 800 studies he found that it is difficult for people to change leadership styles an autocrat will always lead in autocratic style whereas a leader that encourages involvement will tend to be democratic. Different leadership styles may also be effective depending on the situation. He concluded that, as leaders are unable to adapt their style to a situation, effectiveness can only be achieved by changing the manager to fit the situation or by altering the situation to fit the manager. In business it is often difficult to change the situation. Fiedler suggested that a business should attempt what he called leadership match to choose a leader to lit the situation. Leaders can be either task orientated or relationship orientated. So, for example, a business that faced declining sales might need a very task orientated manager to pull the business around, even if the tradition of the firm might be for a more democratic style of leadership. Hersey and Blanchard. P. Hersey and K.H. Blanchard argued that a leaders strategy should not only lake account of the situation, but also the maturity of those who are led. They defined maturity as the ability of people to set targets which can be achieved and yet are demanding. A leader will have task behaviour or relationship behaviour. Task behaviour is the extent to which the leader has to organise what a subordinate should do. Relationship behaviour describes how much support is needed and how close personal contact is. Together these will decide which of the following leadership styles will be used. Delegating leadership is where a leader allows subordinates to solve a problem. For this type of leadership style to work, subordinates need to be mature and require little support at work. Participating leadership is where a leader and subordinates work on a problem together, supporting each other. In this situation subordinates are slightly less mature than when a leader delegates and so need more support. Selling leadership is where a leader persuades others of the benefits of an idea. Workers are likely to be only moderately mature and require a great deal of support. Telling leadership is where a leader tells others what to do. Workers are fairly immature. They are told exactly what to do and little contact or support is needed.

Wright and Taylor. In 1984, P. Wright and D. Taylor argued that theories which concentrate on the situation or maturity of those led ignore how skilfully leadership is needed. They produced a checklist designed to help leaders improve the performance of subordinates. It included the following. What is the problem? An employee may, for example, be carrying out a task inefficiently. 99

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Is it serious enough to spend time on? This could depend on the cost to the business. What reasons may there be for the problem? How can it be solved? Choosing a solution and evaluating if it is the most effective one. Evaluation of the leaders performance. This can be used to identify the most suitable leadership style in a particular situation. For example, if the problem above is caused because the employee has been left to make his own decisions and is not able to, a more autocratic leadership style may be needed. One the other hand, if the employee lacks motivation or does not have the authority to make decisions, greater discussion or delegation may be needed. Key terms Autocratic leadership a leadership style where the leader makes all decisions independently. Democratic leadership a leadership style where the leader encourages others to participate in decision making. Laissez-faire leadership a leadership style where employees are encouraged to make their own decisions within limits. Management by Objectives (MBO) a management theory which suggests that managers set goals and communicate them to subordinates. Summary 1. State 5 functions of management. 2. Briefly explain the process of management by objectives. 3. Give 3 examples of a managerial dilemma. 4. Why might a good manager not always be a good leader? 5. Briefly explain 5 qualities of leadership. 6. Under what circumstances might an autocratic leadership style be useful? 7. State 6 factors which might affect the choice of leadership style. 8. According to Fiedlers theory, why should a business attempt a leadership match? HUMAN RESOURCE MANAGEMENT Managing people in business Since the mid-Eighties the term Human Resource Management (HRM) has replaced Personnel Management to describe the function within business which focuses on the employment, training, use and welfare of people. What does this signal about human relations in industry? For people to be referred to as human resources sounds mechanical and yet the objectives of the approach are precisely the opposite. The intention is to emphasise a total strategy related to a firms most valued resource rather than the set of functions which a personnel management department was commonly expected to undertake. The process begins with effective workforce planning which links intentions related to employees with the internal organisation and the overall objectives of the business. This sees employees not simply as people who perform a set o functions, narrowly contained within a job specification, nor as groups catered for by collective agreements with unions. Rather, it stresses the extent to which employees will have an active role within most of the decision making which surrounds their job in the firm. One of the best examples of this which you will be familiar with is the approach summed up in the phrase quality circles. Employees are considered to be part of a team and not simply individuals working for the firm. 100

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From individual to team member The classic texts present employees as individuals working in a firm and devote attention to individual human needs. You will be familiar with this approach in the work of Maslow, who describes a hierarchy of human needs and stresses the importance of satisfying the higher needs (see Figure 1). Herzberg takes a similar approach (see Table 1), dividing the factors which can be identified in the work situation into those which must be there if people are to work at all (hygiene factors) and those which might be likely to provoke a positive response (motivating factors). Table 1 The Herzberg model
Hygiene factors Working environment Supervision Company policy Relationship with superiors Relationship with subordinates Motivators Achievement Responsibility Work itself Advancement Recognition

Organisational culture The human resource approach centres more on people working in groups, looking at the firm as a whole and developing the idea of a culture which the firm will evolve and to which employees will respond. The spotlight is less on the individual employed through a job description and tightly defined role and more on efficient working teams through which better performance can be identified and achieved. Where emphasis is placed on the needs of the individual and on individual records, a wide range of indicators can be identified through which high or low morale can be measured. These include absentee rates, lateness, accident figures, low productivity and many others. This approach is rather like viewing a class of A-level Business Studies students as individuals. The alternative view of the class is as a set of sub-groups, not always the same groups, working together to achieve learning objectives which the teacher, as manager of the class, determines. These will be in line with overall objectives as represented by the syllabus and the way it is assessed. Translating this to the work situation implies an approach which allows considerable decisionmaking responsibility to be given to teams of workers. In McGregors language, it is very much a Theory Y approach since it demands much greater self-motivation and personal responsibility for outcomes (see Table 2).

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Table 2 McGregors Theory X and Y model

Dislikes work A voids work Is lazy and selfish Is directed, controlled, threatened Avoids responsibility Little ambition Money motivates X Y Is satisfied by work Seeks work Works well, cooperates Is self-directed Seeks responsibility Seeks satisfaction of higher needs All needs motivate

From negative to positive Much of what is traditionally implied in personnel management approaches centres on negative performance measures: the reduction in labour turnover, the avoidance of industrial disputes, the minimising of lateness and absence through such things as timeclocks and flexitime. The philosophy of HRM, in contrast, is that members of teams have a responsibility to each other which is a more compelling motivator than a rather generalised responsibility to the firm. Again I cannot resist comparison with the management of a class. Students working in subgroups work much more for each other than for the class teacher. Evidence suggests that this leads to more continuous and more positive contributions than a whole class or individual student approach commonly produces. The broader perspective of employment If the philosophy of HEM is effectively practised, the view of employment as finding people who will offer individual job skills diminishes. The focus of workforce planning, selection, induction and training is very much broader. Its consequence is both to require and to develop good communication skills and a greater sense of identity with the organisation. HRM implies a movement away from us and them towards a cooperative concern for the same objective based on differing but equally valued contributions. Some might argue that this is true Taylorism in the sense that there is a common goal to be achieved which requires a solution-centred approach. It is not based on different sets of objectives which have to be harmonised in a way which is problem centred and designed to limit or prevent conflict. Mary Parker Folletts view that conflict is not only inevitable but is desirable takes on a new dimension within the framework of HRM because it is through the creative resolution of positive conflict that high performance can be achieved. The approach does not deny the significance of individual human needs. Rather, it sets their satisfaction in a cooperative culture which is more likely to give scope for satisfying higher needs than any approach based on the individual job.

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Why change now? No doubt a variety of reasons can be found for the rapid acceptance of an HRM approach, but I want to confine myself to two reasons apparent in the changing environment of business. The first is the rapid pace of change itself. This is both absorbing and creating innovation at a speed which can only be tolerable within a cooperative, creative and flexible working environment. The second reason is linked to this process the thrust for better and more complete quality assurance within all aspects of organisational behaviour. Innovation The environment is an ever-changing one. This tends to produce uncertainty, fear and conflict when what is required is cooperation, flexibility and contribution. Working within a team is more supportive, allows greater involvement in decision making and an increased opportunity for making a contribution. Such a dynamic environment also needs a stable workforce one that can move with the changes without changing too much itself, one that can live with a higher level of risk and greater uncertainty about the future. Quality assurance History has shown us that the old method of inspecting work and rejecting where necessary is not very effective. It is better to involve workers in the process. Most will work better if they know what the quality objective is and by what criteria completed work is to be assessed. Motivation is futher enhanced if workers participate in making decisions about all aspects of these processes. Quality is an agreed objective rather than an external standard, but the pressures of the market place make it increasingly important that quality assurance targets are met. The contribution HRM can make to this process is to develop worker involvement in deciding the goals of the organisation and therefore far greater commitment to their achievement. From theory to practice? How real are these changes? Can they be seen in the way organisations are run or is this largely the human relations writers talking to each other? Drucker predicts that new organisations which embody HRM will rapidly appear in the next twenty years with flatter organisation charts and much more responsibility centred around the workers. A large, number of individual studies, particularly of large organisations in the motor industry, provide further evidence of such changes, but it will no doubt be some considerable time before they are commonplace in the business and industrial parks of our town. David Dyer is Head of the Economics, Geography and Business Education Department at the University of London Institute. He is Director of the Cambridge Business Studies Project, Chief Examiner for Cambridge Modular and Oxford & Cambridge Modular and Linear courses, and Chairman of our Business Review editorial team.

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LIFE AT THE TOP What do top managers actually do? Andtew Karabadse discusses the varied nature of their work and stresses the importance of top managers in ensuring that an organisation functions effectively as a team. On being asked What do you do?, Ian Prosser, Chairman and Chief Executive of Bass, didnt hesitate. He stressed the contribution he makes to the organisations growth and development, and provided a strategic outline for the company. Sir Graham Day was asked a similar question about his days at Rover. His answer emphasised the sensitivity and care needed to introduce change effectively and grow an ailing business. Colin Sharman, UK Partner of the global consultants and auditors Peat Marwick, responded with a smile and a question: Where do I begin?. So here are three top managers, each displaying a different view as to what their job really involves. Unusual? No this is absolutely normal. Prescribed work Broadly speaking, any managers job can be divided into two parts prescribed and discretionary. The prescribed part refers to the daily structured tasks someone needs to accomplish in order to achieve the basics. The person has little choice but to do what is required (just as a GPs prescription spells out what sort of drugs the patient needs, the quantity, and over what time period). The job may need a low or a high level of skill. For example, routine work is likely to involve people completing a set number of tasks, often conducted in a particular way, on a daily basis. Strangely enough, the work of a surgeon, although high level with respect to skills and status, is also prescribed. Surgeons specialise in particular aspects of surgery and have a set number of units of work to fulfil. Apply this thinking to the role of sales manager. The manager is probably given a geographical region to cover, and sells a part or whole of the companys product range. There are likely to be revenue targets to achieve: a certain volume of sales within certain periods of time. And there may equally be cost targets: you are only allowed to spend so much in order to achieve the target sales. Sales managers may say their ambitious revenue targets are impossible with the limited number of sales people they have. They need more people. The answer is: No. Sell more but with the people you have got! Hence the job of the sales manager is to a large extent prescribed. Discretionary work The second type of managerial work is known as discretionary. This means you have the choice of what to do according to what you think is right. Sales managers who stop and think about their position do have choice: OK, the targets are tough. So do I motivate my people to work longer and harder? Or do I get my assistants to manage my people, while I focus on those valued customers who may require personal attention?. That is a common dilemma for a sales manager to consider. One crucial aspect of discretion is that the manager in question decides. No one else can really say what is best.

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Research clearly shows that in most organisations, greater degrees of discretion accompany more senior roles. The chief executive has the most discretion. It is up to the job holder to provide the necessary leadership and direction. So much depends on what that person feels is the best way forward, bearing in mind the companys strengths and weaknesses, likely future patterns of consumer behaviour and the impact of competition. Where choice is so broad, vision is required, meaning the view a person holds about the future. This is as much about beliefs as about facts. Why should Bass, a brewing and pub business, purchase a global hotel network? So much depended on Ian Prossers belief that the Bass Group would be stronger if it entered the hotel market. He believed it could achieve synergy by integrating the beer and pub business with the hotel business. And Prossers character and leadership style are crucial to making the new-look Bass work. The top managers role A production manager would need product knowledge and an understanding of the manufacturing processes. For a manufacturing director, however, these skills may be useful but not vital. The crucial thing is overall capacity for the role of director. This involves a number of different elements: an ability to apply specialist skills, such as financial or production skills; being able to think clearly about the issues and challenges facing the business, and how to respond to them; and a style and sensitivity to communicate with people in order to win their trust and confidence as their leader. Each director / general manager is going to form a view as to how to make the organisation successful. The chairman or chief executive officer holds one view, but you, as a general manager or director, may not agree with the boss. Perhaps the chairman of the company feels that the way forward is to buy another company as a lever to entering into a new market. The marketing director may disagree, believing the market concerned to be too uncertain and the extra borrowing needed to make the acquisition too risky. The two managers may disagree, but both are rightly exercising the discretion in their role. So what can prevent such disagreements becoming dangerous and divisive? Working as a team The importance of a positive team spirit so that senior managers pull together and yet discuss frankly all the key issues is self-evident, but this is not easy to achieve. Why should a group of top general managers and directors get on? They are quite likely to disagree with each other as to the best ways forward. Even if they agree, they may not like each others style and personality. A Cranfield top executive leadership survey in several countries found that about one-third of companies report fundamental splits of vision at top management level. Even more interesting is the fact that more than half of the companies report personality tensions and style differences. To allow such tensions and differences to continue unabated would be destructive. To try and prevent disagreements would be equally counter-productive. The secret is to achieve an openness of conversation while maintaining a positive team spirit. Hence an additional element of discretion is achieving good teamwork. Where there are several different views on how to make the company successful, an acceptable way forward is likely to emerge from a robust dialogue between the top managers. What does each senior manager consider are the strengths, weaknesses and challenges the company faces? What does each think are the appropriate steps to improve current conditions? If disagreement exists, why is this? (There may be good reasons for differences of view.) A good team is one where the top managers have a sound relationship, where they can bring their disagreements to the surface. 105

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What if the relationships among the top team members are not well developed? What if people feel too inhibited and sensitive to talk to each other? What if people feel that to make critical comments about ones boss or colleagues could lead to being sacked? What happens if top managers feel that to speak out is inappropriate? Knowing the nature of the companys problems is not sufficient. Senior managers may still not speak out. People can have all the necessary insights as to what is wrong and what to do about it, but still end up doing nothing. Bringing certain issues to the surface may be too uncomfortable. Therefore the final aspect of using the discretion in ones role effectively is maturity. Are the top managers of the organisation sufficiently mature to talk about sensitive issues? Nobody is born with maturity it is a quality that people can develop during their life if they so choose. In fact, many people seem to be unduly lacking in this personal quality. Maturity helps individuals cope with situations of ambiguity, disagreement and tension by enabling them to listen, discuss and contribute with others. A piece of sound advice for any senior manager is to leave your ego at home. That way, others find it easier to talk to you. The activities of top managers Forming a broad but accurate view about the company now and in the future is important. And speaking your mind and team work are just as crucial. But what do top managers actually do? The answer is that they do a great deal in little bits: attending meetings, sometimes just to discuss and sometimes to make decisions; listening to what staff have to say; winning the support, trust and confidence of shareholders; meeting with and entertaining key clients; listening to advisers; reading and digesting a large number of reports; holding confidential one-to-one discussions. These activities are often being conducted while other demands are being made on their time, causing interruptions and new priorities which upset existing schedules. For many top managers, these are normal experiences. A single error of judgement in this busy schedule could lead to resignation. Life is demanding, precarious and constantly changing. Top jobs require managers to address big issues and daily details almost within the same breath. Making sense of such a demanding and diverse world requires a rare combination of energy, maturity and vision. As Sir Graham Day commented about his days at Rover: I abandoned the historical documents I had inherited with the business, and started with a clean sheet of paper. I then tried progressively to engage people in discussion about realistic strategies for the business .... With the problems of Rover, this approach might not have worked. Yet in 1993 Rover was the only car company in Europe which increased its market share. The simple fact is that the strategy worked because Graham Day made it work! Andrew Kakabadse is Professor of Management Development at the Cranfield School of Management. He recently completed a major world study of chief executives and top executive teams.

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 (STUDY-GUIDE) ENGLISH FOR STUDENTS OF MANAGEMENT

107

1: MANAGEMENT: AN OVERVIEW : Management: an Overview . , : Vocabulary items. , . Management: an Overview. Management: an Overview : 1. ; ; 2. ; 3. : management functions; managerial process; profit-marking organization; non-profit organization. c Management: an Overview: 1. ; 2. ; 3. What is Management? 2: THE CONCEPT OF STRATEGIC MANAGEMENT : . , : Vocabulary items. , . The Concept of Strategic Management. The Concept of Strategic Management : 1. ; ; 2. ; 3. : strategies; an organizations strategic plan; strategy formulation; strategy implementation; a competitive advantage.

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c The Concept of Strategic Management: 1. ; 2. -, The Concept of Strategic Management. 3: MANAGERIAL KNOWLEDGE, SKILLS AND PERFORMANCE : Managerial Knowledge, Skills and Performance . , : Vocabulary items. , . . Managerial Knowledge, Skills and Performance. Managerial Knowledge, Skills and Performance : 1. ; ; 2. ; 3. : knowledge base; technical skills; conceptual skills; effectiveness; efficiency. Managerial Knowledge, Skills and Performance: 1. ; 2. Some ways that managers can appropriate knowledge base and the key skills; 3. . 4: MANAGERIAL JOB TYPES : Managerial Job Types . , : Vocabulary items. , Participle I . Managerial Job Types; Managerial Job Types : 1. ; ; 2. . 109

3. : first-line managers / supervisors; middle managers; top managers; functional managers; general managers; project managers. c Managerial Job Types: 1. ; 2. - The variation of managerial jobs on the bases of a vertical dimension and horizontal one; 3. . 5: DEFINING OPERATIONS MANAGEMENT : Defining Operations Management, . , : Vocabulary items. . Defining Operations Management. Defining Operations Management : 1. ; ; 2. ; 3. : operations management; productivity operations management; manufacturing versus service organizations. c Defining Operations Management: 1. ; 2. , : perations Management; 3. . 6: STRATEGIC HUMAN RESOURCE MANAGEMENT (HRM) : Strategic human resource management (HRM) .

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, : Vocabulary items. . Strategic Human Resource Management (HRM). : 1. ; ; 2. ; 3. : file maintenance stage; competitive advantage stage. c Strategic Human Resource Management : 1. ; 2. - What is the Strategic Human Resource Management; 3. . 7: HOW LEADERS INFLUENCE OTHERS : How Leaders Influence Others . , : Vocabulary items. , . How Leaders Influence Others. How Leaders Influence Others : 1. ; ; 2. ; 3. : referent power; information power; power. c How Leaders Influence Others : 1. ; 2. ; 3. How Leaders Influence Others. 8: CONTROL AS A MANAGEMENT PROCESS : Control as a Management Process . 111

, : Vocabulary items. . Control as a Management Process. : 1. ; ; 2. ; 3. : controlling; control system; controlling function. c Control as a Management Process : 1. ; 2. ; 3. What Kind of Activities Does the Control Process Include? 9: THE NATURE OF MANAGERIAL COMMUNICATION : The Nature of Managerial Communication . , : Vocabulary items. , Participle I . The Nature of Managerial Communication. : 1. ; ; 2. ; 3. : proxemics; paralanguage; object language; kinesic behavior. c The Nature of Managerial Communication : 1. ; 2. ; 3. The Nature of Managerial Communication.

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10: THE NATURE OF INTERNATIONAL MANAGEMENT : The Nature of International Management . , : Vocabulary items. , Perfect Passive Infinitive. The Nature of International Management. : 1. ; ; 2. ; 3. : international management; multinational corporation; ethnocentric orientation; polycentric orientation; leocentric orientation. c The Nature of International Management : 1. ; 2. ; 3. What is the Nature of International Management.

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Block 1 Management: An Overview World Wide Web . (search engine): Yahoo, Magellan, InfoSeek, Microsoft, AltaVista, Lycos, Excite. Step 1. , . For example: E-mail: dirk.rimhorst@ hbg.Siemens.de Http: // knowledgemotion.sbs.de Step 2. (E-mail). Inquire the information: in what way the four management functions are performed in a chosen company. Use the following phrases: How does planning function involve setting goals and decide how best to achieve them? How does organizing function allocate and arrange human and non-human resources successfully? How does leading function involve influencing others to reach organizational goals? How does controlling function regulate organizational activities? Step 3. Web-site.

Step 4. : ) ; ) How Do Management Functions Work in a Company. Step 5. Step 6. Step 7. ( ). . . Block 2 The Concept of Strategic Management Step 1. .

Step 2. (E-mail). Inquire in what way strategic management put into action in different companies. Use the following phrases: How do your managers formulate and implement strategies? How do your strategies geared in optimizing strategic goal achievement? 116

Do you usually take into consideration the external and relevant organizational factors? How do your managers usually analyze, develop and formulate the situation? Will you give some information about maintaining control over how plans are carried out? Web-site.

Step 3.

Step 4. : ) ; ) : The Strategic Management Process. Step 5. Step 6. Step 7. . . . Block 3 Managerial Knowledge, Skills and Performance Step 1. .

Step 2. . Inquire whether managerial knowledge, skills and performance take place in a chosen company. Use the following phrases: I am interested in Please let me know about the industry and technology of your goods. Would you please inform us, if it is possible, about your company policies and practices. Would you kindly inform about your company goals and plans. We would like to have further details about the personalities of key organization members. We are interested in your suppliers and customers. Step 3. Web-site.

Step 4. : ) ; ) : Managerial Knowledge, Skills and Performance. Step 5. Step 6. Step 7. ( ). . . 117

Block 4 Managerial Job Types Step 1. .

Step 2. . Inquire the information about the levels of management according to the following: Will you be so kind, please, Will you give some information about top managers in your company. What are your top managers responsible for? Do the top managers usually oversee the planing for the organization? Step 3. E-mail Web-site.

Step 4. : ) ; ) How Do Hierarchical Levels of Management Work in Different Companies. Step 5. Step 6. Step 7. ( ). . . Block 5 Defining Operation Management Step 1. .

Step 2. . Inquire whether the operations management functions include hotel managers and the various managers who work in the hotels. (e.g., housekeeping managers, food and beverage managers and convention managers). Use the following phrases: We would like to get in touch with one of your top managers We ask you to inform us about your hotel business. We will be glad to know about your staff who are directly involved in running the hotel. We take so much interest in running your hotel. We will be pleased to have some pictures of your hotel. Step 3. Web-site.

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Step 4. : ) ; ) Operations Management Functions. Step 5. Step 6. Step 7. ( ). . . Block 6 Strategic Human Resource Management (HRM) Step 1. .

Step 2. . Inquire whether the HRM plays an important role in innovations and is an integral part of strategic management. Use the following phrases: We would like you to give us some information how does human resource planning assess the human resource needs. We hope that you will give us a reply in what way you identify staffing needs. Inform, please, how do you select individuals for appropriate positions. How do you organize training and periodic performance evaluations? We would like to know about the compensating employees for their efforts. How do managers respond to various issues that influence workforce perceptions? Step 3. Web-site.

Step 4. : ) ) : Strategic Human Resource Management. Step 5. Step 6. Step 7. ( ). . .

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Block 7 How Leaders Influence Others Step 1. .

Step 2. . Inquire whether the major sources of power and the ways that leaders can effectively use the power they potentially have available. You may need the following phrases: Would you please have your comments about legitimate power in your company? We find it necessary to ask you about reward power. What is it based on? What is it coercive powers depends on? What types of power do managers rely on in your company to be effective? We wish to draw your attention to the above mentioned facts and get a reply, concerning your company. Step 3. Web-site.

Step 4. : ) ; ) The Main Types of Power. Step 5. Step 6. Step 7. ( ). . . Block 8 Control as a Management Process Step 1. .

Step 2. . Inquire whether the Controlling is the process of regulating organizational activities. You may need the following phrases: Would you, please, let us know in what way Controlling support the organizing and leading functions. How does control system help to increase the probability of organizational standards and goals. Is it necessary to regulate quantity produced, resources expended, quality of products and services. May I ask you what kind of activities does the control process include in your company. Step 3. Web-site.

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Step 4. : ) ; ) Control as a Management Process. Step 5. Step 6. Step 7. ( ). . . Block 9 The Nature of Managerial Communication Step 1. .

Step 2. (e-mail) Inquire the information what types of communication do managers use in their work. You may need the following phrases: Will you give a full information How do written communication occur in your company? Do written communication occur has any advantages over oral communication? Where does oral communication take place in your company? Is oral communication in advantage in your company? Step 3. Web-saite.

Step 4. : ) ) The Nature of Managerial Communication. Step 5. Step 6. Step 7. ( ). . .

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ENGLISH FOR STUDENTS OF MANAGEMENT 1. 2. UNIT 1 ) What is Management? b) Gerund. ) The Management Process. b) Block 1 ( ). UNIT 2 3. 4. a) The Concept of Strategic Management. b) Passive Voice (Indefinite). a) The Strategic Management Process. b) Block 2 ( ). UNIT 3 5. 6. a) Knowledge Base. Managerial Knowledge Skills and Performance. b) Infinitive. a) Key Management Skills. Test. b) Block 3 ( ). UNIT 4 7. 8. a) Managerial Job Types. b) Participle I. a) Responsibility Areas. Top managers. b) Block 4 ( ). UNIT 5 9. 10. a) Operations Management. b) Subjunctive Mood. a) The productivity-operations management linkage. b) Block 5 ( ). UNIT 6 11. 12. a) Strategic Human Resource Management (HRM). b) The functions of Participle. a) The Strategic Importance of HRM. b) Block 6 ( ). UNIT 7 13. 14. a) Sources of Leader Power. How Leaders Influence Others. b) Passive Voice (Continuous). a) Effective use of leader power. Test. b) Block 7 ( ). 122 2 2 2 2 2 2 2 2 2 2 2 2 2 2

MANAGEMENT SYLLABUS

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UNIT 8 a) Control as a Management Process. b) Model verbs. a) Significance of the control process. b) Block 8 ( ). UNIT 9 a) The nature of Managerial Communication. b) Participle II. a) Types of Communication. b) Block 9 ( ). UNIT 10 a) The Nature of International Management. b) Passive Infinitive. a) Orientations toward International Management. b) Final test.

16.

17.