2017-18 Reading1: What is Management ?

Peter Drucker, the well-known American business professor and consultant, suggests that
the work of a manager can be divided into planning (setting objectives), organizing,
integrating (motivating and communicating), measuring and developing people. First of all,
managers (especially senior managers such as company chairmen- and women- and directors)
set objectives, and decide how their organization can achieve them. This involves developing
strategies, plans and precise tactics, and allocating resources of people and money.

Secondly, managers organize. They analyse and classify the activities of the organization
and the relations among them. They divide the work into manageable activities and then into
individual jobs. They select people to manage these units and perform the jobs. Thirdly,
managers practice the social skills of motivation and communication. They also have to
communicate objectives to the people responsible for attaining them. They have to make the
people who are responsible for performing individual jobs form teams. They make decisions
about pay and promotion. As well as organizing and supervising the work of their
subordinates, they have to work with people in other areas and functions. Fourthly, managers
have to measure the performance of their staff, to see whether the objectives set for the
organization as a whole and for each individual member of it are being achieved. Lastly,
managers develop people- both subordinates and themselves

Obviously, objectives occasionally have to be modified or changed. It is generally the job

of a company’s top managers to consider the needs of the future, and to take responsibility for
innovation, without which any organization can only expect a limited life. Top managers also
have to manage a business’s relations with customers, suppliers, distributors, bankers,
investors, neighbouring communities, public authorities, and so on, as well as deal with any
major crises which arise. Top managers are appointed and supervised and advised (and
dismissed) by a company’s board of directors.

Although the tasks of a manager can be analysed and classified in this fashion,
management is not entirely scientific. It is a human skill. Business professors obviously
believe that intuition and ‘instinct’ are not enough; there are management skills that have to be
learnt. Drucker, for example, wrote over 20 years ago that ‘Altogether this entire book is
based on the proposition that the days of the “intuitive” manager are numbered (in his book
An Introductory View of Management), meaning that they were coming to an end. But some
people are clearly good at management, and others others are not. Some people will be unable
to put management techniques into practice. Others will have lots of technique, but few good
idea. Outstanding managers are rather rare.

Reading 2: IBM Management Style

Every IBM employee’s ambition is apparently to become a manager, and the company
helps them out in this area by making management the company’s single biggest business.
IBM executives don’t design products and write software:they manage the design and writing
of software. They go to meetings. So much effort, in fact, is put into managing all the
managers who are managing things that hardly anyone is left over to do thereal work. This
means that most IBM hardware and nearly all IBM software is written or designed by the
lowest level of people in the company- trainees. Everyone else is too busy going to meetings,
managing, or learning to be a manager, so there is little chance to include any of their
technical expertise in IBM products.

Go back and read that last paragraph over again, because that’s why IBM products often
aren’t very competitive. IBM has layers of management to check and verify each decision as
it is made and amended. The safety net is so big at IBM that it is hard to make a bad decision.
In fact, it is hard to make any decision at all, which turns out to be the company’s greatest
problem and the source of its ultimate downfall (remember, you read it here first) (By
Robert X. Cringely: Accidental Empires)

Adapted from Ian Mackenzie’s English for Business Studies: A Course for Business
Studies And Economics Students (2001), pp. 12-3-4-5.

Crisis Management: Crisis management experts have identified the following key steps for
companies in a crisis. Complete the chart

1. Set up a crisis management team. 2. Try to predict what crises could occur.

3. Role play a potential crisis. 4. Inform the directors.

5. Disclose as much information as you can. 6. Analyse the actions you took to deal with the
situation.

7. Write down and circulate your crisis management programme.

8. Practise making decisions under stress.

9. Work out an action plan to ensure the crisis does not happen again.

10. Find out what happened and how it happened.

Before the crisis During the crisis After the crisis

……………………. ………………………… ……………………………

……………………... …………………………. ……………………………..

……………………… …………………………. ……………………………..

From Market Leader: Upperintermediate Business English Course Book (2006), p. 92.