5 Top management

planning and strategy

2 What should he do now?
3 What advice would you give him about how to run the company in
the future?
4 What problems can arise when someone starts up a high-
technology enterprise?
Read the following case study and then answer the questions below
Richard Thomas, a brilliant electronics engineer, left the company he
had wored with for ten years in order to set up his own business! "e
felt there was a gap in the maret for low-priced computer
components!
Richard#s ban manager was impressed by his e$perience and by the
business plan he presented! %n overdraft facility of &2',((( was
)uicly arranged! This, together with Richard#s savings of &*'!(((!
provided the start-up capital for the firm, +ompute$!
"e began by hiring another person to help him develop the
components! The two of them spent the ne$t si$ months producing the
type of products they felt the maret needed! When they had built up
a good supply of components, they set about trying to sell them! To
Richard#s surprise, however, this proved very difficult! ,any potential
customers seemed to be suspicious of the low prices of the products!
Why were they so much cheaper than those of more famous, well-
established competitors, they wanted to now! -ther customers clearly
saw Richard#s company as a newcomer not to be trusted - a cowboy
outfit who would be here today and gone tomorrow!
.t was over a year before Richard got his first order! /y that time, he
had an overdraft of &4(!((( and no more money to mae further
supplies of components! "e was spending all his time advertising the
products, running round to meet customers and trying to persuade
them to buy!
Three months later, a few large orders were received, but Richard
realised that he would have to wait two months or so before being
paid!
%t that point, the ban manager lost confidence in the business! "e
informed Richard that he was calling in the overdraft! 0ive me some
time to loo around for more capital, Richard said! #%ll right! .#ll give
you a month, but no more,# was the ban manager#s reply
%fter rushing around and taling to a lot of people, Richard received
firm offers from two venture capital companies! The first was prepared
to invest &2((!((( in return for an 1(2 share of Richard#s business3 the
second was willing to put up &2'(,((( for a 4(2 share!
This was the situation facing Richard Thomas fifteen months after he-
had set up his high-technology enterprise!
* +ould Richard have avoided the situation he now finds himself in! .f
so, how?
The top management of a company have certain uni)ue
.
responsibilities! -ne of their ey tass is to mae ma5or
decisions affecting the future of the organisation! These
strategic decisions determine where the company is going and
how it will get there! 6or e$ample, top managers must decide
which marets to enter and which to pull out of7 how e$pansion
is to be financed7 whether new products will be developed
within the organisation or a)uired by buying other companies!
These and other such decisions shape a company#s future!
*( /efore doing any ind of strategic planning, the management must
be sure of one thing! They must decide what is the mission and
purpose of their business! They also need to # decide what it should
be in the future! .n other words, they must now why the business
e$ists and what its main purpose is! 8eciding the mission and
purpose is the foundation of any planning e$ercise!
Two e$amples will mae this point clear - one /ritish, the
other %merican! ,ost people have heard of ,ars and
9pencer, one of the biggest and most successful retailers in the
2( world! ,ichael ,ars opened his first penny ba2aar in *114, in
:eeds, ;ngland! Ten years later there were nine maret
stores, and ,ars had taen into partnership Tom 9pencer, the
cashier of one of his suppliers! .n *42< ,ars and 9pencer
DISCUSSION
52 53

Understanding the main points
* Number the following ideas 1-8, depending on the order in
which they appear in the text.
a The %merican Telephone and Telegraph +ompany
decided that its principal ob5ective was to provide
customers with an efficient service! b The first step in
planning the =long-term> future of a
company is to decide on its overall ob5ective, c %fter
analysing its strengths, weanesses, opportunities
and threats, an organisation may re-consider its
ob5ectives! d The purpose of a corporate plan is
to state how
management intends to achieve the ob5ectives! e The
second planning stage is to establish more specific
=medium-term> ob5ectives! f 6inally, management needs to
decide what actions it
should tae in order to achieve its ob5ectives! g .t is
necessary for management to analyse the company#s
current performance as well as e$ternal factors affecting
its future before they can draw up a corporate plan! h
,ars and 9pencer#s aim to provide e$cellent value
for money has led to their becoming one of the world#s
most successful retailers!
2 Consider Computex, the high-technology company mentioned in the
discussion on page !. Note down some of its strengths, wea"nesses,
opportunities and threats.
9TR;?0T"9 W;%@?;99;9 -AA-RTB?.T.;9 T"R;%T9
* !!!!!!!!!!!!!!! * !!!!!!!!!!!!!!! * !!!!!!!!!!!!!!! * !!!!!!!!!!!!!!!
2 !!!!!!!!!!!!!!! 2 !!!!!!!!!!!!!!! 2 !!!!!!!!!!!!!!!
2! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
3 !!!!!!!!!!!!!!! 3 !!!!!!!!!!!!!! 3 ! ! ! ! ! ! ! ! ! ! ! ! !
3 !!!!!!!!!!!!!!!
4 !!!!!!!!!!!!!!! 4 !!!!!!!!!!!!!!!
4 !!!!!!!!!!!!!!! 4 !!!!!!!!!!!!!!

54 55
became a public company! %t that point, they could have rested on their
laurelsC "owever, before deciding strategies, the planners have to loo at the
companyDs present performance, and at any e$ternal factors, which might
affect its future! To do this, it carries out an analysis, sometimes called a
9W-T analysis =9trengths, Weanesses, -pportunities and Threats>! 6irst, the
organiEation e$amines its current performance, assessing its strengths and
weanesses! .t loos as performance indicators and maret share, sales
revenue, outputs and productivity! .t also e$amines its resources F financial,
human, products and facilities! 6or e$ample a department store chain may
have stores in good locations F a strength F but sales revenue per employee
may be low F a weaness! ?e$t, the company loos at e$ternal factors from
the point of view of opportunities and threats! .tDs trying to assess
technological, social, economic and political trends in the marets, where it is
competing! .t also e$amines the activity of the competitors! The department
store chain, for e$ample, may see an opportunity to increase profits by
providing financial services to customers! -n the other hand, increasing
competition may be a threat to its very e$istence!
"aving completed the 9W%T analysis, the company and now revaluates its
ob5ectives and perhaps wor out new ones! They will as themselves
)uestions such as3 %re we producing the right products? What growth rate
should we aim at in the ne$t ' years? Which new marets should we brea
into?
The remaining tas is to develop appropriate strategies to achieve the
ob5ectives! The organiEation decides, what actions it will tae and how it will
provide the resources to support those actions! -ne strategy may be to build a
new factory to increase production capacity! To finance this, the company may
develop another strategy, the issuing of a new shares to the public!
+ompany planning and strategic decision-maing a ey activities of top
management! -nce they have been carried out ob5ectives and targets can be
set at lower levels of the organiEation!
#nswer the following questions, then, in groups of two or three,
compare your answers.
* What sort of things motivate people to do their 5ob well?
$ist all the things you can thin" of.
2 .f you won a great deal of money, for e$ample in a lottery, would you
continue woring? .f not, do you thin you would lose anything by
giving up wor?
The wor of managers is to ensure that staff wor efficiently in
an organisation! To achieve this, it is clear that managers must
now what motivates people! /y understanding the factors
influencing motivation, they can create the conditions in which
employees will perform to their ma$imum!potential,
G-ne of the best nown theories of motivation was put forward
by an %merican psychologist, %braham ,aslow, in a boo entitled
%oti&ation and 'ersonality =*4'4>! .n his theory, he presents a
hierarchy of needs! "e identified certain basic human needs and
classified them in an ascending order of
importance! /asic needs were at the bottom of the hierarchy,
higher needs at the top! "is classification is shown below3
8 Motivation
DISCUSSION
READING
*(
Ahysiological needs
These were things re)uired to sustain life, lie food, water, air,
sleep etc! Bntil these needs are satisfied! ,aslow believed!
other needs will not motivate people!
9ecurity needs
They are the needs to be free from danger, physical pain and
loss of a 5ob! They include the need for clothing and shelter!
2( 9ocial needs
% human being needs to belong to a group, to be lied and
loved, to feel accepted by others and to develop affiliations!
;steem needs
%fter people have satisfied their social needs, they want to
have self-respect and to be esteemed by others! They have a
need for power, status, respect and self-confidence!
9elf-actualisation needs
These are the highest needs, according to ,aslow! They are
the desire to develop, to ma$imise potential and to achieve7
one#s goals!
,aslow said that people satisfied their needs in a systematic
way! When a need had been met, it stopped being a
motivating factor! 6or e$ample, if a person was starving, he
would not be too concerned about security and social needs!
/ut once he had enough food, he would start thining about
2those other needs!
Research into ,aslow#s theory has not been very conclusive,
9tudies have tended to show that needs vary greatly among
individuals! %t the higher levels in a company, self-actualising
4( needs may be very strong whereas at lower levels, social and
security needs may be dominant!
%nother theory of motivation, which has been very popular
with managers, is 6rederic "erEberg#s #two-factor# theory!
"erEberg conducted a number of studies in the region of
Aittsburg, B9%7 in the late *4'(s!#"e concluded that at wor
there are certain factors which cause 5ob satisfaction while
others lead to dissatisfaction!
The group of factors bringing about satisfaction were called
#motivators#! They include things lie a challenging 5ob! 1( responsibility,
advancement, recognition etc! These factors give rise to positive
satisfaction! "erEberg called the other group of factors #hygiene# or
#maintenance# factors! These #7 include company policy and administration,
salary and fringe !
H benefits, 5ob security, status and personal life! These factors , are
considered to be only #dissatisfiers#, not motivators! .f they
do not e$ist, they cause dissatisfaction! .f they do e$ist in
)uality and )uantity, they do not! however, give increased
satisfaction!
"erEberg#s two-factor theory is shown in the following diagram!
<( , .t is worth noting that the hygiene factors refer to the conte$t of
the 5ob - the conditions of wor - while the motivators refer to
5ob content.

4(
Herzbefg's motivationh!giene theor!

achievement
challenging wor the
wor itself career
prospects
responsibility
recognition
company policy and administration
salary and fringe benefits )uality of
supervision relationship with
colleagues 5ob security status
personal life
wor conditions

"ygiene factors are essential if worers are to be motivated! %s one
writer has aptly, put it they deal with the )uestion #Why wor here?#!
The motivators deal with the )uestion #Why wor harder?#
.f "erEberg#s theory is true, it means that-managers must pay great
attention to 5ob content! They must find ways of maing 5obs more
challenging and interesting! %s a result, managers I( in the B9% and
elsewhere have recently, been showing great interest in 5ob enrichment
programmes! The idea of such programmes is to mae 5obs more
challenging and to give the worers sense of achievement!
9weden has been leading the way in this respect! %t one car ! plant,
for e$ample, Jolvo, worers assemble the whole of a car rather than
do a few simple operations! .n a! glass factory, production worers
have complete control over the wor
process in the grinding and polishing department! -ther worers have
helped to build and design paper mills! Kob 1( enrichment is
undoubtedly catching on fast in 9weden!
Understanding the main points
(ecide whether the following statements are true or false.
True 6alse
* %ccording to ,aslow people are not concerned about
achieving their personal goals in life unless they have
satisfied their physiological needs!
2 9enior managers who want to become company
directors have self-actualisation needs which they wish to
satisfy!
3 "erEberg, lie ,aslow, believes that people satisfy their
needs systematically!
4 "erEberg believed that worers would not necessarily
wor harder if they earned more money!
' Kob security is one of the most important factors
which motivates employees!
< The purpose of 5ob enrichment programmes is to
increase worer motivation!
motivators
hygiene factors

"# Reading
Read the te$t below, about different ways of organiEing #ompanies$ and then %abe% the
diagrams, according to which of these they
illustrate3
line structure
functional structure
CO&'AN( S)RUC)URE
,ost organiEations have a hierarchical or pyramidal structure, with one person or a group of
people at the top, and an increasing number of people below them at each successive level!
There is a clear line or chain of command running down the pyramid! %ll the people in the
organiEation now what decisions they are able to mae, who their superior =or boss> is =to
whom they report>, and who their immediate subordinates are =to whom they can give
instructions>!
9ome people in an organiEation have colleagues who help them3 for e$ample, there might be an
%ssistant to the ,areting ,anager! This is nown as a staff position3 its holder has no line
authority, and is not integrated into the chain of command, unlie, for e$ample, the %ssistant
,areting ,anager, who is number two in the mareting department!
Let the activities of most companies are too complicated to be organiEed in a single hierarchy!
9hortly before the first world war, the 6rench industrialist "enry 6ayol organiEed his coal-mining
business according to the functions that it had to carry out! "e is generally credited with
inventing functional organiEation! Today, most large manufacturing organiEations have a
functional structure, including =among others> production, finance, mareting, sales, and
personnel or staff departments! This means, for e$ample, that the production and mareting
departments cannot tae financial decisions without consulting the finance department!
6unctional organiEation is efficient, but there are two standard criticisms! 6irstly, people are
usually more concerned with the success of their department than that of the company, so there
are permanent battles between, for e$ample, finance and mareting, or mareting and
production, which have incompatible goals! 9econdly, separating functions is unliely to
encourage innovation!
Let for a large organiEation manufacturing a range of products, having a single production
department is generally inefficient! +onse)uently, most large companies are decentraliEed,
following the model of %lfred 9loan, who divided 0eneral ,otors into separate operating
divisions in *42(! ;ach division had its own engineering, production and sales departments, made
a different category of car =but with some overlap, to encourage internal competition>, and was
e$pected to mae a profit!
matri$ structure
staff structure
/usinesses that cannot be divided into autonomous divisions with their own marets can
simulate decentraliEation, setting up divisions that deal with each other using internally
determined transfer prices! ,any bans, for e$ample, have established commercial, corporate,
private baning, international and investment divisions!
%n inherent problem of hierarchies is that people at lower levels are unable to mae important
decisions, but have to pass on responsibility to their boss! -ne solution to this is matri$
management, in which people report to more than one superior! 6or e$ample, a product manager
with an idea might be able to deal directly with managers responsible for a certain maret
segment and for a geographical region, as well as the managers responsible for the traditional
functions of finance, sales and production! This is one way of eeping authority at lower levels,
but it is not necessarily a very efficient one! Thomas Aeters and Robert Waterman, in their well-
nown boo )n *earch of +xcellence, insist on the necessity of pushing authority and autonomy
down the line, but they argue that one element - probably the product - must have priority7
four-dimensional matrices are far too comple$!
% further possibility is to have wholly autonomous, temporary groups or teams that are
responsible for an entire pro5ect, and are split up as soon as it is successfully completed! Teams are
often not very good for decision-maing, and they run the ris of relational problems, unless they
are small and have a lot of self-discipline! .n fact they still re)uire a definite leader, on whom
their success probably depends!
"d Comprehension
Which of the following three paragraphs most accurately summariEes the te$t, and why?
,irst summary-
%lthough most organiEations are hierarchical, with a number of levels, and a line of
command running from the top to the bottom, hierarchies should be avoided because
they mae decision-maing slow and difficult! % solution to this problem is matri$
management, which allows people from the traditional functional departments of
production, finance, mareting, sales, etc! to wor together in teams! %nother solution is
decentraliEation3 the separation of the organiEation into competing autonomous
divisions!
*econd summary-
,ost business organiEations have a hierarchy consisting of several levels and a clear line
of command! There may also be staff positions that are not integrated into the hierarchy!
The organiEation might also be divided into functional departments, such as production,
finance, mareting, sales and personnel! :arger organiEations are often further divided
into autonomous divisions, each with its own functional sections! ,ore recent
organiEational systems include matri$ management and teams, both of which combine
people from different functions and eep decision-maing at lower levels!

*(
Read the following information about ).%/s methods of wor" and 0 then
discuss the questions below.
.n his boo %anagement Aeter 8rucer maes some comments about the
worers who produce ./,#s e)uipment! "e says that ./, made a conscious
effort to mae their 5obs big. Tae, for e$ample, the machine operators!
%lthough the operations they perform are designed to be simple, the
worers do a number of different tass, of which at least one re)uires sill
and 5udgement on the worer#s part! %lso, because of the range of hisMher
tass, the worer is able to change the pace at which heMshe wors!
8rucer says interesting things about other ./, methods! The way the
company develops new products is worth noting! /efore the engineering
of the new product is finished, the pro5ect is given over to one of the
foremen, who then manages it! 9o, the final details of the engineering
design are wored out on the shop floor with the engineer and worers
who will mae the machine!
./, production worers are not told what production rate they must
achieve! They wor out a rate with their foreman! ./, says that there is no
such thing as a production norm! ;ach man wors out for himself, with
his superior#s help, the speed and flow of wor that will give him the most
production!
* What are the advantages of maing the 5obs of production worers
big1 %re there any disadvantages?
2 Why, do you thin, does ./, develop new products in the manner
described?
3 What do we learn about
=i> ./,#s attitude towards its production worers? =ii> the
company#s style of management?
?o one has had more influence on managers in the twentieth century
than 6rederic W! Taylor, an %merican engineer! "e set a pattern for
industrial wor which many others have followed, and although his
approach to management has been criticised, his ideas are still of
practical importance!
Taylor founded the school of 9cientific ,anagement 5ust before 7
the *4*4-*1 war! "e argued that wor should be studied and
analysed systematically! The operations re)uired to perform a
particular 5ob could be identified, then arranged in a logical .
*( se)uence! %fter this was done, a worer#s productivity would .
increase, and so would hisMher wages! The new method was
scientific! The way of doing a 5ob would no longer be
determined by guesswor and rule-of-thumb practices!
7
.nstead, management would wor out scientifically the method
for producing the best results! .f the worer followed the
prescribed approach, hisMher output would increase!
When Taylor started wor at the end of the nineteenth century, the
industrial revolution was in full swing! 6actories were being set up all
over the B9%! There was heavy investment in 2( plant and machinery,
and labour was plentiful! "e wored for twenty years =*1I1-*141> with the
,idvale 9teel +ompany, first as a labourer, then as a 9hop 9uperintendant!
%fter that, he was a consultant with the /ethlehem 9teel +ompany in
Aennsylvania!
Throughout this time, he studied how to improve the efficiency of worers on
the shop floor! "e conducted many e$periments to find out how to improve
their productivity! "is solutions to these problems were, therefore, based on
his own e$perience! :ater, he wrote about his e$periments! These writings
were collected and published in *44I! in a wor entitled *cientific 3(
%anagement.
When he was with /ethlehem 9teel, Taylor criticised
management and worers! "e felt that managers were not
using the right methods and that worers did not put much
effort into their 5ob! They were always #soldiering# - taing it
easy! "e wanted both groups to adopt a new approach to their
wor, which would change their thining completely! The new
way was as follows3
* ;ach operation of a 5ob was studied and analysed,
! Bsing this information, management wored out the time and 4(
method for each 5ob, and the type of e)uipment to be used7
3 Wor was organised so that the worer#s only responsibility was to
do the 5ob in the prescribed manner7
4 ,en with the right physical sills were selected and trained
for the 5ob!
-bserving7 analysing7 measuring7 specifying the wor method7
organising and choosing the right person for the 5ob -these were the
tass of management!
Taylor#s approach produced resultsC 6or e$ample, at
/ethlehem 9teel, he did an e$periment with shovels, the tool
'( used for lifting and carrying materials! "e studied the wor of
two first-class shovellers and then changed their woring
procedure! .n the beginning, the men used their own shovels
for all the types of materials they handled, whether coal or
2 Frederick W. Taylor:
Scientific Management
DISCUSSION
*4
*1

iron ore! The average load was 31 pounds, and each lifted 2' tons of
material a day! /y e$perimenting, Taylor found out that if the men used
smaller shovels and carried 2* pounds per load, their daily output
increased to 3( tons! %s a result, at the beginning of each shift, worers
were given different siEed shovels, depending on the type of material
they loaded, but <( the load was still 2* pounds! -ther worers
meeting the # standards set by the two shovellers had their wages
increased by <(2! Those who could not reach the standard were given
special training in shovelling techni)ues!
/y introducing methods lie these, Taylor and his colleagues
greatly increased productivity at /ethlehem 9teel! %fter a few
years, the same amount of wor was done by *4( worers instead
of '((! "andling costs of materials were halved, which led to
annual savings of N1(,(((!
Taylor made a lasting contribution to management thining! I( "is
main insight, that wor can be systematically studied in order to improve
woring methods and productivity, was revolutionary! %lso, he
correctly emphasised that detailed planning of 5obs was necessary!
The weaness of his approach was that it focused on the system of wor
rather than on the worer! With this system the worer becomes a tool in
the hands of management! .t is assumed heMshe will do the same boring,
repetitive 5ob hour after hour, day after day while maintaining a high
level of productivity! %nother criticism is that it leads to de-stalling -1(
reducing the sills of worers! /ecause the tass are
simplified, worers become frustrated! %nd with educational
standards rising among factory worers, dissatisfaction is liely to
increase! 6inally, some people thin that it is wrong to separate
doing from planning! The two tass can, and should, be done by
the same person! % worer will be more productive if heMshe is
engaged in such activities as planning, decision-maing, controlling
and organising! 6or all these reasons, a reaction has set in against
the ideas of 6rederic W! Taylor!
Bnderstanding the main points
* Complete the following sentences, using your own words. *
Taylor#s method of management was revolutionary because
! +ompanies which adopted this new approach to management
would benefit because !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3 9cientific ,anagement would also be a good thing for worers
because !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4 %t /ethlehem 9teel Taylor decided to give worers smaller shovels
so that !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
' %s a result of the new woring procedures introduced at
/ethlehem 9teel, within a few years the company!!!!!!!!!!!!!!!!!!!!!!!
2 Complete the following table.
6rederic W! Taylor3 *cientific %anagement =*44I>
%8J%?T%0;9 8.9%8J%?T%0;9
* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! * !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
2 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Jocabulary focus
* ,ind words or phrases in the text which mean the same as the
following-
* maing a 5udgement without being certain =paragraph 2>
2 calculate =paragraph 2>
3 )uantity of goods produced =paragraph 2>
4 established =paragraph 3>
' amount to be carried =paragraph <>
< fi$ed period of time wored each day, especially for factory
worers =paragraph <>
I perception, clear realisation, deep understanding =paragraph 1>
2 What is the meaning of the shop floor =line 2'>? *
Complete the following chart.
A;R9-? ?-B? J;R/ %8K;+T.J;
manager management manage managerial or
managing
criticise
performer science training O
analytical industry observe engineering revolutionary consult
:%?0B%0;
9TB8L
2(

What is ,anagement?
+omplete the te$t using these verbs3
analyse communicate contribute divide form
improve measure commercialise perform risk
select train understand use work out
Lou want me to e$plain what management is? Well, . guess * can manage thatC %ctually, management
as we =*> ! ! ! ! it today is a fairly recent idea! ,ost economists in the eighteenth and nineteenth
centuries, for e$ample, wrote about factors of production such as land, labour and capital, and about
supply and demand, as it these were impersonal and ob5ective economic forces which left no room for
human action! %n e$ception was Kean-/aptiste 9ay, who invented the term PentrepreneurP, the person
who sees opportunities to =2> ! ! ! ! resources in more productive ways!
;ntrepreneurs are people who are alert to so-far undiscovered profit opportunities! They perceive
opportunities to =3>! ! ! new technologies and products that wi ll serve the maret better than
it is currently being served by their competitors! They are happy to =4> !!!!!! their own or other
people#s capital! They are fre)uently unconventional, innovative people! /ut entrepreneurship isn#t
the same as management, and most managers aren#t entrepreneurs!
9o, what#s management? Well, it#s essentially a matter of organiEing people! ,anagers, especially
senior managers, have to set ob5ectives tor their organiEation, and then ='> ! ! how to achieve
them! This is true of the managers of business enterprises, government departments, educational
institutions, and sports teams, although for government services, universities and so on we usually tal
about administrators and administration rather than managers and management! ,anagers
=<> ! ! ! ! ! ! ! ! ! the activities of the organiEation and the relations among them! They = I> !
the wor into distinct activities and then into individual 5obs! They =1> ! ! ! people to manage
these activities and perform the 5obs! %nd they often need to mae the people responsible for
performing individual 5obs =4> ! ! ! effective teams!
,anagers have to be good at communication and motivation! They need to =*(> !!!!!! the
organiEation#s ob5ectives to the people responsible for attaining them! They have to motivate their staff
to wor well, to be productive, and to =**> ! something to the organiEation! They mae
decisions about pay and promotion!
,anagers also have to =*2> ! the performance of their staff, and to ensure that the ob5ectives
and performance targets set for the whole organiEation and for individual employees are reached!
6urthermore, they have to =*3> !!!! ! ! and develop their staff, so that their performance continues
to =*4> ! ! ! ! ! !
9ome managers obviously = *'> ! ! ! ! ! ! these tass better than others! ,ost achievements and
failures in business are the achievements or failures of individual managers!
When you have checed your answers, translate the highlighted e$pressions into your own language!
1.1 m a n a g e m e n t
1a Discussion
* What is management? .s it an art or a science? %n instinct or a set of sills and
techni)ues that can be taught?
2 What do you thin maes a good manager? Which four of the following )ualities do
you thin are the most important? % being decisive3 able to mae )uic decisions /
being efficient3 doing things )uicly, not leaving tass unfinished, having a tidy
des, and so on + being friendly and sociable 8 being able to communicate
with people ; being logical, rational and analytical 6 being able to motivate and
inspire and lead people 0 being authoritative3 able to give orders " being
competent3 nowing one#s 5ob perfectly, as well as the wor of one#s
subordinates
. being persuasive3 able to convince people to do things K having good
ideas %re there any )ualities that you t hi n should be added to this list?
3 Which of these )ualities can be ac)uired? Which must you be born with?
UNI T 2
,anagement
1 Management - an art or a science
1b !eading
)his te*t s+mmarizes some of 'eter Dr+#,er's vie-s on management. As !o+ read abo+t
his des#ription of the -or, of a manager$ de#ide -hether the five different f+n#tions he
mentions re/+ire the fo+r /+a%ities !o+ se%e#ted in !o+r dis#+ssion$ or others !o+ did not
#hoose.
WHAT I" MANAGEMENT?
Peter Drucker, the well-known Americn !u"ine"" #ro$e""or n% con"ultnt, "u&&e"t" tht
the work o$ mn&er cn !e %i'i%e% into #lnnin& ("ettin& o!)ecti'e"*, or&ni+in&,
inte&rtin& (moti'tin& n% communictin&*, me"urin&, n% %e'elo#in& #eo#le,
- .ir"t, o$ ll, mn&er" (e"#ecill/ "enior mn&er" "uch " com#n/ chirmen - n% women -
n% %irector"* "et o!)ecti'e", n% %eci%e how their or&ni+tion cn chie'e them, Thi"
in'ol'e" %e'elo#in& "trte&ie", #ln" n% #reci"e tctic", n% lloctin& re"ource" o$
#eo#le n% mone/,
- 0econ%l/, mn&er" or&ni+e, The/ nl/"e n% cl""i$/ the cti'itie" o$ the
or&ni+tion n% the reltion" mon& them, The/ %i'i%e the work into mn&e!le
cti'itie" n% then into in%i'i%ul )o!", The/ "elect #eo#le to mn&e the"e unit" n%
#er$orm the )o!",
- Thir%l/, mn&er" #rcti"e the "ocil "kill" o$ moti'tion n% communiction, The/ l"o
h'e to communicte o!)ecti'e" to the #eo#le re"#on"i!le $or ttinin& them, The/
h'e to mke the #eo#le who re re"#on"i!le $or #er$ormin& in%i'i%ul )o!" $orm
tem", The/ mke %eci"ion" !out #/ n% #romotion, A" well " or&ni+in& n%
"u#er'i"in& the work o$ their "u!or%inte", the/ h'e to work with #eo#le in other
re" n% $unction",
- .ourthl/, mn&er" h'e to me"ure the #er$ormnce o$ their "t$$, to "ee whether the
o!)ecti'e" (0et $or the or&ni+tion " whole n% $or ech in%i'i%ul mem!er o$ it re
!ein& chie'e%,
- 1"tl/, mn&er" %e'elo# #eo#le - !oth their "u!or%inte" n% them"el'e",
2!'iou"l/, o!)ecti'e" occ"ionll/ h'e to !e mo%i$ie% or chn&e%, 3t i" &enerll/ the )o! o$
com#n/4" to# mn&er" to con"i%er the nee%" o$ the $uture, n% to tke re"#on"i!ilit/ $or
inno'tion, without which n/ or&ni+tion cn onl/ e5#ect limite% We, To# mn&er"
l"o h'e to mn&e !u"ine""4" reltion" with cu"tomer", "u##lier", %i"tri!utor", !nker",
in'e"tor", nei&h!ourin& communitie", #u!lic uthoritie", n% "o on, " well " %el with n/
m)or cri"e" which ri"e, To# mn&er" re ##ointe% n% "u#er'i"e% n% %'i"e% (n%
%i"mi""e%* !/ com#n/4" !or% o$ %irector", Althou&h the t"k" o$ mn&er cn !e
nl/"e% n% cl""i$ie% in thi" $"hion, mn&ement i" not entirel/ "cienti$ic, 3t i" humn
"kill, 6u"ine"" #ro$e""or" o!'iou"l/
!elie'e tht intuition n% 4in"tinct4 re not enou&h7 there re mn&ement "kill" tht h'e
to !e lernt, Drucker, $or e5m#le, wrote o'er 28 /er" &o tht 4Alto&ether thi"
entire !ook i" !"e% on the #ro#o"ition tht the %/" o$ the 9intuiti'e9 mn&er re
num!ere%,4: menin& tht the/ were comin& to n en%, 6ut "ome #eo#le re clerl/ &oo% t
mn&ement, n% other" re not, 0ome #eo#le will !e un!le to #ut mn&ement
techni;ue" into #rctice, 2ther" will h'e lot" o$ techni;ue, !ut $ew good i%e",
2ut"tn%in& mn&er" re rther rre,
Aeter 8rucer3 #n )ntroductory 2iew of %anagement

Management " 0
Evalation
9o .#d say that was the least favour- . agree with Q
able option for us.
The problem with licensing 9o . would ran it as a fairly unattrac- Les! . thin that fits
is that!!! tive option! in with the way we
loo at this situation
too!
1ang+age Che#,%ist
1. %a"ing an opening statement
Welcoming
Welcome to!!!
.#m sure we will have a useful and productive meeting
6irst meeting
We see this as a preparatory meeting!!!
We would lie to reach agreement on!!!

. have some doubts about this option!
.#m not sure how to react to that suggestion!
. feel we should go even further than that!
The main strength of this, from our point of view, is that!!!
The main strength of this, as we see it, is that!!!
. thin it fits in with the way we loo at it!
,y immediate feeling is that it doesn#t fit in with our philosophy!
)2. 3andling o&er
.#d lie to finish there and give you the opportunity to reply to this
.#d lie to hand over to my colleague!!!, who has something to say about!!!
What is your opinion about !!!!?
.
.#d lie to begin with a few words about our general e$pectations!!!
,ay . outline our principle aims and ob5ectives today!!!
We want to clarify our positions!!!
We have a formal agenda!!!
We don#t have a formal agenda, but we hope to reach agreement on!!!
There are three specific areas we would lie to discuss! These are!!!
We have to decide!!!
.#d lie to start by suggesting!!!
"ow about trying!!!?
"ow about using!!!?
.t seems to me that there are a number of ways we could wor together
There seem to be several possibilities lor woring more closely together!
9hall M . suggest M we list the options list and then e$amine them in more detail one by one
9hould we brainstorm the options before we discuss any in detail?
"ave you considered the idea of!!!?
We could also!!!
Why don#t we go through each of these in more detail!!!
%t this stage . thin we should loo at each option in turn!
))). +&aluating the option
Reason
. thin the main weaness
of this for us is that!!!
Reaction
Evalation Reason Reaction
4ne of the series of meetings
6ollowing previous meetings we have agreed on some important issues! Today we have to
thin about!!!
We have reached an important stage!!!
* thin that#s got a
lot of potential!
The main strength of the pro5ect is that!!! Les, we are also
interested in close
cooperation, but!!!
))! *tating your aims and ob5ecti&es