Test Your Managem nt Test Your Professional English: Management is one in a series of ton useful Test Your Professional English Docks ‘eaturss 40 clear and simple tes's for management studen!s and professionals. The 000K Is organized into 8 seciions and overs over 500 key wards end expressions in areas such fae manage yios, team-bulcing, organizational culture managing change, management control end systems management, ana internation’ managernent 60 teste covoring aver 500 key words and expressions Wide variety of te fit-the-gaps, and meny more 13, eluding crosswords, cartoons, Tos on using English for work ‘8-2 word list and full answer key Ideal for seli-study and ol Test Your a Manageme fh To2s Design i Cover photograpiy by ZA Bor ‘Also look out for! [] Advances |. Aauns / Upper Intermediate 16+ [| Intermediate [7] 12-15 "| Pre-intermediate |_| Primary Published and distributed by Pearson Education Limited Elementary CI ‘Beginner jaaIn memory of Wicher Hento, 1988-2000, a valued trend! and colleague, of Hageschoo! \Windeshelm, Zwolle, Notherands. Pearson Education Limited Edinburgh Gote Harow Essex OM20 206, England ‘and Associated Gompanees throughout the wor. ISBN 0 682 48897 3 2"* impression, 2002 First published 2002 Text copyright © Simon Sweeney 2002 Designed and typeset by Pantek Arts Ld, Maidstone, Kent Test Your format devised by Peter Watoyn-Jones Iustrations by David Eaton and Roger Ferecay Printed in taly by Rotolto Lombarda Allrights reservso; no pert ofthis publication may ba reproduced, stored in a retrieve system, or transmitted in any form or by any means, elton, mechanical, photocopying, recaraing or otherwise, wnthout the prior writin permission of the Publishors. ‘Acknowledgements, ‘Thanks to colleagues and fends in the School of Managament, Conrrunity and. CGornrrunication at York St John Galege; to Stove Findars of York Associates; also to “ry edtor, Nick Briogor, for his usual patience and understanding. Helen Parker and Jane Durkin at Pearson Education also showed copiaus quantts of both these sssets, They algo euagested many useful improvements to the marusorpt. Needless {to say, whalaver weaknesses remain are entirely my own responsibilty. sin ‘Sweeney Published by Pearson Education Limited in association wth Penguin Books Lid. both companies belng subsiiaries of Pearson pl. For a complet lst ofthe tiles m Penguin English please vit our website at wa penguinenglsh.com, or write to your local Pesrson Education ofc OF to: Marketing Department, Penguin Longman Publishing. 80 Strand, London WO2R ORL. See Contents To the student v ‘Section 1 Management funetions Noaseone a cob tes The role of managers Defning management Characteristics of managers History of management theory Marketing Management style ‘Modern management theory Seorons Section 2 Leadership and group dynamics 9 10 " 12 13 14 15 16 Theory X and Theory ¥ 2 Leadership styles Team building 1 Confict management 7 Motivation 8 Negotiating styles Project management ‘Time management Section 3 Organizational culture 17 Deining organizational cuture 24 18 Characteristics of organizational couture 25 19. Developing organizational cuture 28 20 Fourdimensions of cure 28 21 Cultural varionce 29 22. Power and poities 30 23 How poltical ao you? a2 Section 4 External tactors, ethics and values 24 the external environment 33 25 The ndusty envionment «4 26 Ethical issuos 1 38 27 Standards 38 28 Looking atte people: Health anct Safely 40 29 ethical issues 2 2 30 Telogistave ervronment 43 Section 5 Managing change 31 Fores for change 4a 32. The process of managing change 48 33. Innovation a 34. Training 48 38. Organzational changs s0 36 Change and communication 51 87 Resistaroa to change 58 ‘Section 6 Planning and business ng 54 89 SWOT analysis 89 40. Tre business plan 58 41. Sequencing and timing ‘2 Gantt chart 58 42 Managernert By Objectives (MBO) cs) 43. Total Qualty Menagement (TOM) 60 44 Corporate strategy 2 45. Strategic management 63 46 Poxtioto analysis 65 ‘Section 7 Management control and, systems management 47 Management organization 68 48 Information anc! dota handing 68 49° Opecations maragement 7080 Human Resources 72 51 The control process 14 52 Maragerent abbrevistons 76 83. Financial control 78 84 Resaarch anc Davelopment (°80}78 Section 8 International management 85. Intemational organizations. 81 58 international marketing 82 CONTENTS 587 Working across frontiers 58. Globalization 59° Cultural Issues 60. Global issues and the future Anowors Word lst Bibliography 0 0 100 106 To the student Do you use English in your work or in your studies? Perhaps you are already working in management, Or maybe you are a student doing @ management course or @ business studies programme. Perhaps you are planning to study a management deg’ee, even an MBA. if you need to improve your knowledge of management and management terms, this book will help you. You can che your knowledge of basic management concepts, key words and essential ‘expressions so that you can communeate more effectively and confidenty in your work and for your studies, ‘There are eight sections in the book, The first section is a basic introduction te management functions, terms and concepts. The remaining seven sections each cover a different area of management including leadership and organizational culture, managing change and the external environment, You ccan elther work through the Book trom beginning to end or select chant e2ccording to your interests and needs. Many tests also have useful tins (advice) on language learning or further professional information. The tips offer important extra help, especially as they introduce some additional key language. Many diferent kings of tests are used, including eentence transformation, gao-fling, word famites, multiple choice, crosswords and short reading tex's. There isa key at the back of the book so that you can check your answers, ‘and a word list to help you revise key vocabulary. ‘Your vocabulary is an essential resource for effective communication, The ‘more words you know, the more meanings you can express. This book wil help you develop your specialist vocabulary stil further. Using the tests you ‘can check what you know and also leam new concepts and new words in a loarly structured framewerk ‘Simon SweeneyThe full series consists of: ‘Test Your Professional English: Accounting Test Your Professional English: Business General ‘Test Your Professional English: Business Intermadiate Tost Your Professional English: Finance Test Your Protessional English: Hotel and Catering Test Your Professional English: Law Test Your Professional English: Management Test Your Professional English: Marxating Test Your Professional English: Medical Test Your Professional English: Secretaria) TO THE STUDENT Alison Pohl Stove Finders Steve Flndors Simon Sweeney Alison Pohl Nick Brieger Simon Sweeney ‘Simon Sweeney Alison Poh! Alison Pohi 1 Job titles SECTION I Match the job title with the best definition on the right, 1 2 3 4 5 6 7 8 9 10 1" 2 Chief Executive a Officer (CLO) Information ’ Systems Director Purchasing Director | Human Resources d Director Systems Analyst e Managing Director Marketing Director 9 Production Director oh Customer Service i Manager Staff Development i Officer Finance Director k Exports Manager ' Manager responsible for buying. Person who designs computer networks. British English teeth for senior ‘manager of a company. Manager responsible for the process of creating goods or services for safe to customers. American English term for the top manager of a company. Person responsible for setting up training opportunities for employees, The person responsible for computer operations in a company, Person responsible for managing product development, promotion, customer service, and selling. Person responsible for markets in other countries. Manager responsible for personnel issues. Person responsible for relationships with customers, Person responsible for presentation and control of profit and loss. (Customer Service Manager is @ noun comeound, The word manager is ‘auatied by sorvice and the word service s quatfied by customer. Customer ‘Service Manager means a manager of service(s) for cistomers. ‘Noun compounds faio eallec compound noun) ere common in English. ‘Look at the other examples above.3 Defining management Here are some definitions of management and the role of managers. Complete the sentences with words from the box. SECTION 1 2 The role of managers “The table shows four main roles of managers: planning, arganizng, leading ‘andi controling, Below the table isa ist of management functions. Write ech function under the correct heading, — ecsembling controling tinarcial x2} goals human (x2)_intormation Cromniena| innovation (x2) leadership leading marketing material (2) crgarization (x2) organizing planning (2). process (2). resources (x2) Cee ae Planning __teking on new staff __ | 1 Managers are responsible for ‘the proces s of p aa o. | _-and¢ the efforts members and of using all organizational ~ to achieve stated organizational g _ (atescon, Albert andl Khedoute, 1985, quoted In Fiznnagan, 1998, p4) 2 (Management is) getting things done by other people’, (Mary Parker Follett, 1941, quoted in Hannagan, 1998, p.4) 3 (Management is) the process of optimizing h_ ieee eeeerc anal _ contributions for the achievement of organizational goals’. (Pearce and Robinson, 1989, quoted in Hannagan, 1998, p.) 4 A modem view of management, expressed by Sir Roland Smith, is that ‘Management should be based on i moe and risk’ {quoted ia Hannagan 1998, pS Management functions communicating with staff comparing results with targets deciding strategy empowering staff to take decisions identiying change identifying needs managing resources monitoring quaity standercs motivation putting systems in place —satting objectves—_takiigrere-new stat team-building supervision _time management Potors and Waterrtan (1982) say that planning, organizing, ifiuencing and ontiollag are crtcal management functions trat shoud be cheracterized bya bias fo" action. “All managers may be involved with the operational aspects of management but as they are promoted and develop, their role becomes increasingly one of p_ and 1 is (Hannagan, 1998.3) Management is ‘the _ -h_ and using f and m__ and in a goal-directed manner to accomplish tasks inano - (lack and Porter, 2000, p.19)SECTION + SECTION Y 4 Characteristics of managers Match each term in the box with the pictures (112). creative emmotianaliystrang flexible good communicator knowledgesble leadership skils mental skils sensitive to others social skills technically skilled Adjectives are often formed with autikes (endings) added to the root of a \word. Look at the encings in tho folowing adjective from the list above: creative ‘exible knowiedgcable, ‘sensitive SkiledSECTION 1 5 History of management theory Below is a list of menagement theories over the last five hundred years. n each pair decide which statement is tue. Machiavelli The Prince (1513) You have to be eleverer than your opponent, sometimes using force ox trickery. b) You have to kill your opponents. Marx and Engels The Communist Manifesto (1848) 1) The Communist Party will dominate the world, b) ‘The working class will rise up and take power from the bourgeoisie, creating a utopia of equality and brotherhood, Taylorism (1913) a) A‘scientific’ approach to management based on measuring time, performance and output and relating these to wages and salaries, b) A system af management based on friendly co-operation between managers and workers. Hawthorne studies (1924-32) a) Studies showing that factories produce more if workers are put ‘under increased pressure. Studies showing the relationships between management and workers are very important in getting the best performance. SECTION t Elton Mayo (19303) a) The idea that social needs and relationships are very important factors in the workplace, b) The belief that workers should be able to control the work environment. Maslow’s Hierarchy of Needs (1942) a) The idea that people have needs which motivate their performance. Once a need is met, it is no longer motivating, b) The idea that workers and managers have the same needs and have to co-operate. Systems approach (1950s and 603) a) Belief that organizations consist of many parts and management has to help each part to work both individually and as part of the whole organization. b) Belief that a company is a single organization. Managing the single organization from the top brings success. Contingency theory (1980s and after) a) Idea that organizations are all similar and have the same objective — profit. b) Management must study every situation and design the best response,SECTION 1 6 Marketing the central gotivity in Ousinass management, In Marketing is in many wey ‘everybody's business’ cormmercial organizations, marketing is A Complete the definions of marketing using words from the box. qi | demand everthing people promoting services things L 4 Selling things that don’t come back to who do. 2 __ a company does to influence for its products and services. 3 ___ and selling goods and ___. ‘+ A key concept in marketing s Unique Selling Proposition (USP), the soecial qualities Of a product or service. These qualities make the product ferent from competitor products ano aive it special appeal to consumers. Marktors aim to create a USP in thelr products, + See also: Test 39 SWOT analss SECTION + B_ The Four Ps of marketing are now the Saven Ps, because of the increasing importance of services and customer service. Fil in the spaces below to match the seven Ps to the best definition, People Physicalevidence «Place. «Price Process -Predet. Promotion ‘The tracitional Four Ps are: 1 Product The goods or services a company provides. 2P Decisions about what customers pay for the product. gee pESaee Hat ‘Things concerned with location and distribution. 4 oP Ways to make the company and its products well known and ways to sell products. And here are three more: 5 P Everyone involved with the company and its products, especially the customers. Ge Peete All the ways in which the company and its customers interact. 7 po Anything that shows or mentions the name and image of the company and its products.SECTION 1 { Management style ‘The table below contrasts two styles of behaviour, Culture A and Culture B, ‘Study the table, then answor the True/Faise quastions below. Culture A Managerial activity Culture 8 Plan for every situation. PLANNING Accept surprises. Develop plan with boss. Develop a plan, then ask boss to agree. Create a department ORGANIZING Organize department hierarchy. into teams. Communicate frequently Communicate infrequently face-to- face, often by e-mail. face-to-face, rarely by e-mail, Inform subordinates of LEADING Involve subordinates decisions. in decision-making, Get involved in disputes Allow subordinates to between subordinates. solve their own problems. Monitor activities, guide CONTROLLING Evaluate then reward ~ based on results. Focus ‘on customer satisfaction, in evaluation. behaviour. Emphasize financial results in evaluating performance. (Adapted from Black and Porte, 2000, p.102) TD ‘True/False 1 Culture A is more modern. 2 Culture A is more flexible. 3° In Culture A, the manager is more ‘hands on’ and directive, 4. Hierarchical companies have a top-down way of working. True/False ‘True/False 8 Subordinates help in decision-making in less traditional, modern companies. True/False 6 if finance is the main factot in decision-making, staff are happy. True/False P {09 also: Test 9 Theory X and Theory Y 8 Modern management theory SECTION 1 Complete the text belaw with the correct headings trom the box. Corporate downsizing Loamirg organizations Teamveorking 1 Just-In-Time_ { ‘Tis system was introduced from Japan in the 1980s, It meons ordering components exactly when. you eee them, and supplying goods extlly wien. { ‘the customer needs them. {t eliminates. SMorage ie and rehices cost. 2 Many lange comporatons and uli nals had grown too complex by-the 1990s. Some sectors of the organization were less profitable. Many of these ‘companies sold off or closed the under- performing sectors 38 Management increasingly understands the value of sharing poswer with others throughout te organization, This leads to ‘more participation in decision-making. 4 This is closely related to (3). By ‘encouraging employees to work in very fluid teams, responsibility is. shared. Employees and managers at alt levels develop a better selfidentity and work ‘becomes more interesting, This system is seen as much more efficient than linear or hierarchical structures, Empowerment Cutsourcing Total Quality Management sae time Re-engineering 5 ‘This is a total revision and restrucuring of an entire company. It involves. asking fundamental questions about the objectives of the business and how it ‘operates. It aims to ereate big improve- ments in cost quality, service andprodiuct, 6 ‘This management approach focuses on ‘measuting the quality of service in al) aspects. The idea is to develop systems that are moze efficient and more {economical but which are also more able to meet the needs of customers, 7 ‘This approach recognizes that companies ‘cannot do everything, Itcan be better to Use external suppliers for some specialist ‘operations, or particular components in ‘manufacturing. This decision eas create quality improvements and cost svings. 8 ‘Many companies have developedinternal training programmes to help with staf? development. This is an important vestment in the workforce. It not only makes people better at their job, but it also makes them happier. 1 may also help companies to keep their best ranagers and staff PP ssivaoneci tiny nt cae De ee eee ee9 Theory X and Theory Y What do managers think of their staf!? McGregor (1980) said there were two ‘opposing views, Theory X and Theory ¥. A Read the text below, then answer the Trua/Fase questions. (Theory X managers believe that people dislike work, Work is | necessary because if you do not work you cannot live, People are {naturally lary. They prefer to be directed. So managers have to tell |, their subordinates what r0 do, Managers ave to organize the workers | and pressure them to do things. The manager's job is to think about | che goal of the organization then make workers realize the goals. ; Subordinates want security. They want managers to organize and control everything. So Theory X managers are authoritarian | Managers are the bosses. They decide the goals and give orders. They Uiveet everything, from the top down. ‘Theory ¥ is more or less opposite to Theory X. “Theory Y managers believe that people like work. Work is necessary because people want to work to feel happy. People are naturally industrious. They prefer to participate in decision-making. Managers discuss with their subordinates what to do, Managers organize communication channels with the workers and listen to their opinions, ‘The manager's job is to establish the goals of the organization with the managers to involve them, to delegate decision-making, to allow them auronomy. Theory Y managers are team-oriented. They trust their 4 + workers, so that together they can realize the goals. Subordinates want | subordinates. The organization is less hierarchis | and more ereative. Dae 4. Theory X and Theory Y are theories of leadership. 2. Theory X is a more traditional description of ‘management/worker relations. True/False 3° Theory Y is typical in herarchical top-down organizations. True/False SECTION 2 4 Theory ¥ managers tell workers what they want. Workers do it. ‘True/False 5 Theory X managers are authoritarian, True/False 8 Theory Y workers are lazy and don’t want to work, —‘True/False 7 For Theory X workers, work is natural, True/False 8 Theory Y working relationships are open, communicative and creative. True/False 8 Put the words and phrases below into the correct column, -ommunication- control co-operation creativity, direction modern orders participation —_seourity tacitions! work is anecessity work lo natural Theory X communication | PP itceiniip tina at Sen en * Soo also: Tost 7 Management styleSECTION 2 1 O Leadership styles J] Team-building a. Look at the diagram below, It shows thal an effective team contains aiferent people with diferent roles and diferent qualities. Study the diagram, then read the text thal folows and fllin the spaces. Balancing roles in an effective team Innovator Creative Mentor srwentive Supportive rote 3 Leader Competitive <——— Motivating ————» Co-operative Summarizing Producer Monitor Task-oriented Technically Goat-focused competent Controller Reliable Co-ordinator ‘Tick the three words or phrases that rraich each style of leadership, 1 Autocratic leadership open modem directivey hierarchical creative traditional ff Team-building: getting the balance right The whole point of teamwork is that people work together. The most effective teams contain a balance of different people with different skills. For example, a team needs (1) innovators _. These are Creative, ideas-oriented people. They look for new solutions and explore alternatives. The team also needs (2) , people who get results. These are task-oriented and understand the objectives of the team. Both these types tend to be competitive. 2. Democratic leadership group-oriented Communist team-based communicative simple charismatic 3 Laissez-faire leadership open non-existent co-operative creative strong modem 4 Charismatic leadership political personality-driven goal-oriented inspirational Balancing this are more co-operative individuals, These may include bureaucratle reward-based ® who support team members and make sure Rood relationships are maintained, Others are (4) with technical expertise and the ability to check progress, measuze Performance and ensure that things are both possible and desirable. Notice the terms group-orlented, team-based, personaliy-arven, ‘goal-oriented, rewarc!- based. These mean ‘oriented towards the aroun’, “based on teams’, ‘driven by personality, ‘oriented towards goals’ and “pasod on rewards’SECTION @ Another important role is the (5) who works on all levels of co-ordination and organization of the team. At the heart of the team is the (6) His/her role is to make sure that all parts of the team work well together. He/she must greed objectives. He/she is also ‘motivate team members to achieve the a responsible for summarizing and reporting the work of the team. ‘Team building in the workplace creates a sense of collective responsibility. Everyone shares in success, everyone learns from ‘mistakes, everyone works together to help everyone else, The result isin theory - more harmony, less competition; more support, less isolation; more job satisfaction and lower turnover of staff. The combined result is more success. SECTION 2 1 2 Conflict management ‘A Conflict, ke change, happens. There are different types of conflict in Conflict type 1 2 3 management contex!s. Look at the table below and match the type of conflet (1-5) with the best definition (2-2). Definition Perscnality or inter-personal differences within a group. Inter-group conflict a b Intra-group conflict Conflict between groups. Relationship conflict © Disagreement on ideas or what to do, Inertia ¢ Conflict within a group Substantive conflict e Failwe to act or produce results, Below are five possible solutions to conflict. Complete the phrases using words from the box, communication skits leacer mediator methods options Redefine goals or working Compare and evaluate Appoint a Improve _ The should intervene (or resign to allow a new leader to take over) PP vxrtmres aes intra. within So the Imtemetis a network between diferent computers; an intranet is & etwork within one orgenization,SECTION 2 1 3 Motivation - ® Complete the three definitions of moiivation with wards from the box: behaves drives effort outcomes reach willingness ‘@ Motivation is what (1) drives __us to try to 2) __ certain goals. ‘© Motivation is a decision-making process through which @ person ‘chooses desired (3) ___—and (4) __ in ways that will lead to acquiring them. © Motivation is the (5) to make the (6) _ to achieve certain goals. BB Animportant theory cf motivation in management is Masiow’s Hierarchy of Neads. Maslow (1242) described fv levels of need. Loak at the pyramid below which shows these needs, lead the text cn page 19 and ‘tte the names for each level (1-5) in the pyramid. Use the words in the ‘box opposite. cai-devloprant ‘athasteem recognition status senso ofbelonang ove ceeutty protection Aiea hunger torst wath BEE Eee eee eee SECTION 2 Estoem needs Sett-actuaization Physiological neads Safety neads ‘Social needs Maslow’s theory suggests that people treat each level as a motivating factor, but once a level is achieved it is no longer motivating. Instead, the next level up becomes the new motivator. This tells us that in the workplace, esteem needs are important, but once achieved, they are no longer significant. Self-actualization, or self-development, is much more important, Managers therefore have to make sure that their staff continually feel that they are improving and achieving more in terms of self-actualization. “Maslow also states that it is not possible to move up a step without first fulfilling the lower needs. "Need is @ verb. Need is eso used as a singular noun, but most frequenty i is used in the plural, neds. "Notice the orepositions in these Ohrases: the need for something), in nec of (something), the needs of (someone) Notice also the oun phrases customer needs, financial needs, research needs, training neces,SEGTION 2 i 4 Negotiating styles ‘Tho text opposite describes three negotiating styles. Read it and then ‘complete the table that follows. SECTION 2 Most people negotiate to gain some advantage io themselves or to their side. The fighter is only interested in his side winning and the other side losing, This is @ hard style of negotiation and involves making demands. In business, itis often better to negotiate to independent advantage. This, ‘means each side thinks about its advantages, but knows that the result will bring either common benefits or different advantages to each side. Both sides get something and are happy with the result. In this type of negotiation everyone makes concessions. This is sometimes called a ‘win/win negotiation, Another style of negotiation is seen in the creative negotiator, Here both sides look for agreement. Agreement is the main objective and one or both negotiators have a soft negotiating style. Negotiation styles: a continuum “Adversarial negotiation (win/lose) Adversar Principled Creative negotiation negotiation | -—_ negotiation Negotiate to Look for Look for ) wt Q @ | beneiits Make (4) Make (5) Accept what is | | on offer (R_ Negotiator for loe Independent and negotiator mutual advantages | winywin | Aare PP sv ner nnn4 5 Project Cae 'A._ Tre folowing are typical stages in project management, Key words rave been scrambled. Unseramble them. fl 6 SECTION 2 Time management Good time ranagerrent is very important in an efficient worxplace. Most people coud improve their ime management sal. Match an action (1-6) wity its mesning (A-E) and an example (v-2), ____ objectives ____ 1 Set jobsevtele ‘Action Meaning Example Establish sonnifitide SoHE 4 plan, A. improve your VA colleague asks you to go to a Appoint project reelad and smeat abilities meeting ~ but itis not absolutely necessary. You make an excuse and do not go. Put work out to redent —————— 2 delegate B organize~_—- W_You write appointments, deadlines and actions in your diary. You know what you have todo for the week 3 upgrade order things XA new project has to be carried Discuss sopaltops —_ 2 3 4 Rstimate stocs and provide a dubteg 5 6 7 atetongie with tendering companies 8 Sign tontscrac —— skills according to ‘out. You do not have time to run it. importance You ask someone else to do it. © nalp and Jedushex the work —_——_——— 4 prioritize DB sayno ¥ You decide that writing a repost for 10 Provide necessary trupsop ——_—__ your boss is the most important job ‘today. Do that, then do something ‘else that is urgent, but less important You sign up for an in-service training requests, else to do seminar on Time Management, something 41 romiiton the work in progress 12° Evaluate Jesstut 5 tumdown E getsomebody 2 BB Match each of the words you have unscrambled with @ word or phrase below that has a sirilar meaning. Forexample: 1 objectives | aims a discuss £ offers k assistance b terms @ submissions 1 elms ¢ ongenize check m outcomes d co-orinator 1 groups 1 expenses fe settimetargets §—j_agreements © thancial plan How is your tme management? Here aro eight tios on tene management: oep a ciry; unite weekly (or dail) To Do Ist; priotize; set objectives; make ‘eacines: act or delegate; bul in relaxation time; andl gat enough sleep!SECTION 3 17 Defining organizatonal culture A Every organization, every business, has is pertioular culture. Organizational culture combines aspects of an organization with is particular cute. Label aon of fhe folowing as part of ‘organization’ (0) or as part of ‘cuture (C) Values Having a clear structure Beliefs Formal sources of authority Assumptions and attitudes Norms Objectives/Common purpose Relationship between centre and periphery Le eoawomnk on + Shared experience - 40. The system ae B Complete the dialogue below using words in part A. A; How is organizational eu | ture created? What is it? B: Organizational culture is a set of basic a __ _ or what people think, in a company or organization. ‘A: So it's based on common v__.--? Bi That's right. Everyone learns these over time, They learn the way of doing things, the n_ : And everyone agrees that they are right? A B: Generally, yes. A: And where do they come from? B; From shared experience. From history, tradition and common b ‘Av And new employees usually learn the same things? They learn the momma learns the same organizational culture. 1 8 Characteristics SECTION & of organizational culture ‘Company A and Company & have broadly opposite orgenizational cultures. For characteristics 1-6, fil n the spaces with a word which contrasts with the underlined ward in the apposite column. For 7-10, complete the phrase so that it contrasts with the idea in the Company A + A modern manufacturing company, 2 Af___ company structure. 3 An open company with fluid communication channels. 4 There are i_ meetings to decide policy. 5 There are general guidelines. for employees to follow, 6 The business is m_ -driven. 7 Communication channels work in all directions, including sideways, 8 Work is organized through af_______ system of teams, with a lot of exchange between teams, 8 cL and innovative and dynamic Work are highly valued. 10 People ate valued above s opposite column. Company B Atraditional manufacturing company, A hierarchical company structure, Ac company with clearly defined communication channels, ‘There are formal meetings to explain policy. ‘There are alot ofr____ and Toe for employees ‘0 follow. The business is product-driven, Communication channels are tli-d Work is organized through a rigid system of d 2 with little exchange between them, Productivity and financial success are highly valued. Systems are valued above pLSRE ee eee eee eee SECTION 1 9g Developing organizational culture Complete the sontences below (1-8) with a word from the word square, The words are all conrected with things a company may use to devolon its organizational culturs, faliluix}s[viulalolcls claltslalnjalajale Ve|N clejrale{mjojNfile| ss Z\ATH | N|Y Ls I R/O ae ee U;Y]E|O IE eeee ie Eee O!IN t}ulaleolu}tjollicj}el rin S]/P|O/]N]Sj)O JR} S]H 1 P ZIAJE | P/O] K Mlle | G FE) Ww afifsiely|s ils) t[r]sju mlalejalz]ifnjelefo|m virfelmjalajwla [a | bis] 1 Many companies supply uni f or ms for their employees whict make them instantly recognizable and establish the idea of a team. 2 Many organizations and sectors of employment have a particular 1 ___. with special words, special jargon unknown outside| SECTION @ Many organizations have a specfal regularm ______ full of news and comment on the activities of the organization. Some organizations, especially those in leisure, sports and entertainment, use s__ image. _ to promote a particular ‘The history of many companies, and thelr boardrooms, are illustrated with pictures of company or organizational h Special prizes and a _ _____ presented at special ¢_ help to build up the image of a company. While fairy stories are not usually part of company history, there ie eet and sometimes im ____ that become part of the organizational heritage, Logos, letterheads, the painting on vehicles and on buildings, and all signs ands are a significant contribution to the culture of an organization.SECTION 20 Four dimensions of culture Hofstede (1980) wrote about culture as ‘collective programming’ which affects behaviour. Here is a brio! summary of Hofsteda’s work as applied to organizations. Complete the spaces using words from the box. assertiveness collective competitiveness dimensions: environment femininity individualism — masculine masculinity power distance subordinates Hofstede identified four } @) dimensions of culture. jee eae uncertainty avoidance, individualism and masculinity. ‘The first, 2) p_—__ te ‘eau | ‘of inequality in organizations. It depends on management style, and reflects a measure of openness and effective communication between managers and (3) 5 : (The second, (4) a____ isa measure teeta | of how much people feel that I new unusual situations are a Bt (Gy esstsseseeceeeeeeeeeisi threat uncertainty avoidance What's your culture like? measure of how much the organization has an individualist ora (7)c ethic. ‘The last one, em peste is contrasted with (@f__ This isa measure of how much the organization is assertive or competitive (19) A_ and (11) ¢__ are seen as (Ga) ma eee indicators. In contrast, caring and a stress on quality of life and concer for the (3) e__ are seen as feminine characteristics. 1 SECTION 3 2 Cultural variance Trompenaars (1999) describes seven aspeots of culture that affect behaviour Below are fe of these aspects which contain contresting features, e.g tuniversal and particular, individual and collective, ete, Match each feature (1-10) with the correct meaning (€-p. Aspects of culture Meaning 1 Universal @ Business relationships are limited and contractual. 2 Particular b. Status, age, gender or education matter more than particular successes. 3 Individual © Relationships are fluid and flexible depending on situation. 4 Collective Society is based on the whole community. 5 Neutral © People are reserved and do not easily express feelings, 6 Emotional f Recent o past successes are highly valued 7 Diffuse @ The whole person is engaged in the business relationship and it takes time to build the relationship. 8 Specitic h Society is oriented towards individuals’ wants and needs. 9 Achievement-based _i_ Relatively rigid rule-based behaviour, 10 Ascription-based i - Itis common io express feelings openly. PP recon i nt iii Time: History and past experienc, or curent actiities and Potential to create the future Environment: the extent to which incviduels afect the word they ive In, oF how much the word affects individuals * See also; Test 69 CufturaliseuesSECTION SECTION 3 22 Power and politics “4 person can have power over you only if he or she controls something B Complete the following dialogue from a class on management with you desire.’ words fron the box. sRobbins, 1996, p.463) compromise control groups influence looking lose erganizationa! status t Student: What are (1) _organizational_ politics? Tutor: They‘re the process by which individuals and 2 try to increase their @ Inside an organization. Student: So being political can help you to have some @ ‘over aspects of your work? Tutor, Exactly. A Match the term on the lat (1-6) with the best detrition (a a Student: What if you don’t know the politics inside an organization? 1 Referent power a Power that is based on fear. Tutor: Ifyou don't, you can (8) a Student: So politicking means (6) for influence 2. Coercive power b- The ability to make others do as you pits wish, because you control resources, e.g. favours, promotion or salary Tutor: Perhaps. In fact, a Jot of the time you have to resources. ” But essentially the game fs to raise 3. Reward power © The capacity that A has to influence your (8)_________ within the organization. to do things he or she would not otherwise do. 4 Legitimate power d- Power based on knowledge or special abilities. 5 Power @. Influence that a person has because of special personality traits or desirable resources. 6 Expert power f. Power that is based on status or position in an organization.23 How political are you? Many poitical issues can affect the working environment, Match the issues (1-9) wath the examples (2-1 lesue Example 1 Gender polities a Saying a colleague has done a bad job, or made a mistake. b Taking the opportunity to increase your power and influence because ‘of someone else's weak position. 2 Equal opportunities 3 Ethics © Treating everyone fairly, without considering their race, gender, beliefs, etc. d_ Helping a colleague to do their job better. 4 Peer competition @- Rivalry between colleagues for power, influence, opportunities and rewards. 8 Relationship-building f Creating shared attitudes and common views among a team 6 Making alliances 7 Exploiting weakness ~ 9 Giving a woman a job because you need more women in that department 8 Ciiticizing colleagues Creating common views with particular colleagues who have power and influence. 8 Giving friendly advice Making decisions about moral issues, such as the interests of the whole community. “Three of the above might not be acceptable in some contexts: eaying & ccoleaque hes done a bad job; taking the oppartunty to increase your power ‘and infiuence because of somecne else's weainiess, and ghing a woman a job because you need more women in a particular deparirnent SECTION 4 24 The external environment Businesses and organizations have to adapt and respond to pressures from the external environment. The diagram shows eight kinds of pressure that impact on businesses. Match each one to an example (1-8) below a oe estes pf St ae A Oe = (a vausry 0 Domestic (@ Eruteemaria 1 Other businesses offer similar or better products or services. _h Globalization offers opportunities to export more goods or services. ‘The target market changes because of demographic factors. New laws affect product design. 5 Products become out-of-date due to new inventions. 8 Production costs increase because of difficulties in getting raw ‘materials from ecologically sensitive areas, e.g. rain forests. PP asta i technology — tectinologcal indhistiy ——industiat ‘competiton. competitive environment efvionmental25 The industry environment “This test looks at one of the eight extarnal factors mentioned in Test 24, The industry environment means the Industry in which a compeny works and all the factors which affect competition in that sector. A Mark the following statements as True or False, In an industrial sector with a low profit environment it is impossible for a company to make large profits. In an industrial sector with a high profit environment there is usually a lot of competition. Substitutes are possible alternatives that customers can choose. An environment with fragmented customers means that the customers cannot act together to make producers lower their prices. Highly technical products with high start-up costs make it difficult for new producers to ente: the market. High quality and low price normally go together. If there are many suppliers of a product, then the suppliers are in a weak position. If there are few, high profits are easier to obtain ued ‘True/False ‘Truc/False ‘True/False SECTION 4 B_ The chart below shows the possible contrast between a high profit environment and a low profit envionment. Complete the missing words, Note: The information in part A will help you to do this. ‘The industry environment and profit Higher profits 20 -based competition @ Few competitors © Difficult m__ to enter ‘© Few new players in the market Few substitutes @ Many ¢_ Many suppliers -~ customers P Lower profits « Price-based competition © Many ¢_, © Easy market to enter ‘© Many new players in the market © Many s_ ‘© Few customers © Few s © United customers Den’ contuse the inauisy svcinment Wah teva indie marketing. ‘haustial merketing macs promoting and seling acces anc services to aranizaene and indisties, ro: rary to Gansu nlisal madeting contest wl Gonsurner marketing, where puskiasses marke her gods ‘rainy to orate Indias:26 Ethical issues a Metch the ethical issue (1-10) wath an example (2-9 and « picture (A~J) that ilustrates the issue. 1 gH Ethical issue 1. Workers’ rights 2 Animal rights 3 Corruption 4 Computer data protection 5 Codes of conduct & Company ‘perks! Consumer safety 8. Environmental protection 410 Operating a cartel Example Agreeing to set high prices with a competitor Not giving a job to someone because they are of a different ethnic origi Marketing a dangerous product. Secretly giving money to a business partner to get a favour from him/her. Putting dangerous chemicals into a river. ‘Testing products on rabbits. Making staff work very long hours. Stealing secrets from a computer network. Giving sonte employees special benefits. Getting drunk at lunchtime.} sees meeseeeeseeeieeieinaeieeseseeeenaae ol Standards 7 Companies and organizations need to meet certain minimum standards of behaviour There are at least four categories of standards, These include standards of behaviour: towards customers and consumers (CO}; towards the law (L); towards employees (E); towerds the environment (ENV). SECTION 4 Look at the pictures below. ‘A. Identity the category. Some are concemed with more than one category. B Label cach picture by uniscramtling the words. hicld rabuot __child labour _ ois natoncimaniot tefsya dasdranst konwirg donticoinsSECTION 23 Looking after people: Health and Safety ‘Companies and organizations have a legal and moral responsibiliy te look: alter their employees and their customers. Heelth and Satety requiations protect employees. Consumer Protection laws protect consumers. A Label the pictures below with words trom the box. air-conditioning ergonomics SECTION 4 ) protective clothing safety mask for a weider safely cap 07 a olganng agent vivigection warning notice on a paint tin 8 Now label eac of the above "H&S" (health end safety provsions for taf}, or “CP” (consumer protection}. P ‘Anoun compound consists of two nouns, &9. Safely mask, faint tn, ‘prociuc! testing). These phrases typioaly mean tho came as: ‘8 mask for safety atin for paket ‘esting of products ‘Normally the first noun in the noun product " rene carocind isthe Shp, ie od testing not products tasting. i :SECTION 29 Ethical issues 2 Below is a lst of issues which may or nay not create ethical cllerrmas for & company or organization. Unscramble the underined words. O SECTION 4 3 The legislative environment Companies and organizations operats in a legal environment, Below are ten areas 1 Cigarette gadvisterin. advertisin: of lagisation. Maich each logisative area (1-10) with the correct description fa -). 22) puslime displays of sweets. Legistative area What is it about? 8° Animal tintseg of pharmaceutical products, 1 Environmental a Minimum standards in quality, i legislation service and rights of customers. 4. seviticoniv for cosmetics, soaps ar 2 Social tegislation b Restrictions on use, movement shampoo products. Hee and sale of items that present serious tisk 5 elswith-blowing to expose coruption in your organization. — 3 Consumer protection \@ Protection of air, water and land, (@ Having no equal popsiteteruin policy in 4 Dangerous goods Issues conceming state such security legislation as defence interests, nuclear employment. eee % Changing jobs and taking fecdatilinon information on suppliers to your new job. ie resources, etc 5 Tariffs, duties and taxes @ Employment law, hours of work, holidays, insurance, ete. Presenting figts to a possible buyer. 6 Official secrets, state {Restrictions on ways of promoting 8 Offering corporate toyasphilit to ne legislation goods and services. ‘employees and their partners. ale of goods 9 Compulsory levies applied by legislation government. {0° itronmoop of sweet drinks to children. 8 Company law hh Rights for all groups in society to be treated fairly. 9 Advertising standards ~The quality of goods and services and the accuracy of any claims made for products and services offered for sale. 10 Equal opportunities law j Obligations to publish accounts, names of directors, etc. ‘The noun good is only used in the plural and takes 8 pli! verb, 2.9: The ‘9000s remain cur property unt payment is receWed in fu, ‘thet commen plural noun forme are: ‘Premises (bulcings), assets financial, contents, tures, savings 7 The singul Testing products on animals is an ethical issue. Singular form ofthese nouns has a diferent mearing trom the plural form.3 | Forces for change What are some of the most important forces for change’? Match the pictures (1-10) with the forces for change (2-4) SECTION 6 legislative change f technological change D consumer needs and wants 9 competition © demographic change h automation public opinion i environmental/ecological factors © — changing leisure habits J changes in financial environment P "he envionment maar tho word nich we v6 an werk Tho ths ote uzedn conection vith ecological concer We can dsc mre specie ervronrent by sda uae, 2.9 he Gushassenvronment the compote erutormon, te ea envionment, ne pstical envionment econ erhormant The word envio suse sed nthe sul, tu not phase in ferent envionmentSECTION §| 32 The process of managing change Change happens. Managing change is about dealing with this reality, Complete the wards in the diagram with words that mean the same — or almost the same - as tha words or phrases in the box. 1 1 say that something wil happen 2 calculato. «3 fx 4 design ! Scaryout check 7evalusts 8 guea prize { i PLANNING ()p__ eae, RESEARCH lee leiansaaaet ‘success cee EVALUATION COMMUNICATI fm _ @)s__ goals! performance objectives assess TRAINING and adapt (Ap _ courses strategy seminars \CTION CHECKING/CONTROLLING i @)m—_-—— strategy, implementation and progress SECTION 5 SO Innovation Look at the graph, which shows five stages of innovation. Complete the desorption below with words from the box, Five stages of innovation rages ofimovation (@lack and Porter, 2000, p.112) decine development diffusion invention inventor market Jerovation integration petent range ‘There are typically five stages of (1)_innovation_. First there is @1 which means thinking of a new product or new idea, During this period, the (3) i should (4) p the idea, Then the second phase is (5) d where the idea is adapted to the needs of a specific (6) m, ‘Then comes the (7)d___ stage, where the idea is sold and used by consumers. Next the company fully accepts the innovation and it becomes a full part of the business's product (8) ‘This phase is called o - The final phase is called (10) d Perhaps technology moves on ot consumer demand changes and the idea ot product is no longer needed. ‘Compare the ve stages of innovation with a classic product life cycle. Itis vary simtar. The product le eyoie is oftan Gescrbad in terms of ‘development, iaunch, growih, maturty, ssturation, and decina,Training Training is a key aspect of dealing with change. Answer the questions below with words or phrases from the box. ‘Which department is usually responsible for training? 40 What is the name for a single small conference or meeting, for curiculum vitae (CV) graduate human resources discussion or training? in-service training lecture qualieation research retraining seminar skills audit _statf development cao est aan bapa eerie eae 41 What is the term for making training available to staff? 12 What is the name for a single talk given by an expert to a training 1 Whats the name of the person responsible for training in a group? company or organization? __training manager 13 What do you call someone who trains staff? 2 What is a possible alternative to making an employee redundant? 14 What do you call someone who is being trained? 3 What do you call a special award that is given after a training course? 18 What is the term for training given to employees as part of their 4 What is the word to describe someone with a university degree? job? 5 What is the doc experience? ment that lists a person’s work and educational 6 What is the term for a special study to find out something? 7 What is the name of a process to find out the level of competence, needed for certain activities, or the existing competence of staff? ‘The -ng form of the ve scaled the gerund wher tetas in place of 3 oun: traning. Gerunds are common: engineering, tsamworking, doansiing, outsourcing, data processing, narting, et. 8 What is the term used for the money available to spend on. training?SECTION 5] SECTION 6 36 Change and 35 Organizational change “Adapt or ce’, This is a common saying in business, Businesses and organizations must respond to change, Match the terms (1-8) with the correct dofirions (a). i PP vce test ose An approach to change that is based on looking at people and their relationships to the whole. The approach is planned, strategic and long-term, Organizational a development bb Aconcept of organizational change that is based on flexibility and continuous change. ‘Change agents Bench-marking © Acombination of forces that do not want change. Communication Study of the impact of change. Resistance © Radical redesign of all aspects of an to change organization's activities, f Explaining way change is necessary and how it should happen. Re-engineeri Data analysis 9 A process of identifying a model of “est practice’ and comparing performance against this model. Organizational h. People responsible for making, renewal change happen in organizations. the prox that we have sean inthis book + re-engheorng * roaring + redeoon ‘ é 1615 used with hphen (o-) before 'e', 0 eo-ongineeing, We aloo ue ‘vyphon ff thee Isa sir wort inorder to ehaw te diforerse, 2g te reform to form dgain) Gompaiéd with to reiorm to change} communication ‘A When managers have to introduce change, good communication is very important, There are many ways to communicate in businesses and ‘organizations. Look at the defintons (1-8) and match them with ways to ‘communicate in the box below. Do not use all the words in the box. compary reports departnenial mesiing discussion. e-mail extranet fax formal prosontations internal mail Internet intranet memos newsletters notige-board post quality circles teleconferencing telephone video-tape voice-mail 1 Conversation about a particular topic. discussion 2 A method of using computer and TV monitor links to hold a ‘meeting in real-time, but when the participants are in different places. 3 Occasional meetings between colleagues to talk about how performance can be improved. 4 A form of telephone answering system. 5 Paper correspondence between employees in the same organization. 6 Traditional letter correspondence. 7 Aprivate network accessible from PCs and open only to members of the same organization or group. Users can read and respond to messages posted on a website. A private network restricted to members of the same organization and authorized outsiders. Users can read and respond to messages Posted on a websiteSECTION 5] B Complete the table below with all the words from the box on page 51. ‘Speech Machine ‘communication ‘communication memos geese eeceeeseeeeeeeeeceeeeCe Written/printed ‘communication ‘The vitual offce has oocome a voalty. Working from home, using networkec ‘cotriputrs and sisctronie dats tanster (EDT), le now an aternatve 76 the traditional offs. Mobile communications, iiciuding o8l, phones thal can, ‘hid and recetve é-mail messages, and fapiop computers, mean you can have a portable offco. Video-conferencing capabilites are improving al the- tipia. Electronic funds transfer (EFT) and home-shopping using the Internet are every tools, 37 Resistance to change (Change is often met with resistance. Change agents therefore have to rnogoliste with those who would profer to resiat the changes. Complete the headings forthe fve stages of negotiation with words from the box. agreement concessions or compromise information persuasion planning preparation — relationship building Eee I Stage I Planning and Before face-to-face meetings, the foundations have to be ready. Collect information, Decide on a strategy. Set objectives. Stage IE seesseeceeeeec _ between negotiating parties This stage 1s about developing trust between the parties. Stage IIL ‘exchange inds of the other side. eam about the needs and den Stage 1V eee essere attempts Attempts to modify the position of the other side. Negotiation is about increasing the influence of your side. Stage V = and In this stage both sides make changes in their original position. If this, happens, both sides leave the negotiation with some satisfaction. PP Sesion i to male a concession to make concessene : Co saeannake a compromise to male campronises tocomoronioe * See also: Test 14 Negotiating styles:38 Planning _ {All the words in the box cancern planning. Match each term with the correct definition (1-12), The answers include the word plan eight times. action budget. ~—-business_—_ contingency interim objectives. operational planning provisional strategie tactical 1A plan that focuses on the whole organization, internal and extemal factors, and actions necessary to reach long-term goals. strategic plan 2 Approcess that focuses on the future of an organization and how to reach certain targets. 3 The results or targets that management thinks are desirable. ae 4 Aplan for a specific part of the wider organization, usually narrower in scope and over a shorter time period. A short-term and temporary plan. _ 39 SWOT analysis A classic way to create a metketing strategy is to begin by looking at a company's Strengths, Weaknesses, Opportunitios and Throats. Expo Markating Coneuitants camtiod out a SWOT analysis of GUBU Toys Ltd. Putall their findings in the correct box to complete the SWOT analysis. 1 Reliable and committed workforce 2 Use of wood ~ seen as ‘good for the environment’ 3 High labour costs 4 Location — far from population centres/far from new markets 5 Beautiful handmade toys 6 Poor communications systems / limited technological skills 7 Internet as potential marketing tool / e-commerce 8 Lack of IT training in staff 9 Declining interest in domestic markets for traditional toys 10 Potentially strong demand in Germany and Scandinavia 11 Competition in Germany and Scandinavia / Baltic countries 12 Increased competition from mall order companies 13. Selling by new channels, e.g, mail order Expo Marketing Consultants SWOT Analysis for GUBU (Toys) Ltd A trial plan, that may or may not be adopted permanently. 8 Aplan which explains a new commercial activity or new company and how to start it, 9. A plan of what to do, often indicating individual responsibilities, often short-term. __ 40. A plan which sets out the forecast costs of a project or activity. 41 Areserve plan which will only be used if necessary. Strengths Weaknesses SECTION 6 Opportunities ‘Threats * Strengths and Wesknesses are conoemied with things inside the company which it can drectly conttel. Opportunies and Threats are outside factors. * Soe also: Test 8 MarketingAO The business oan ‘Read the text below on proparing business plan. Then look at the Contents ‘page from the Business Plan of Gorliz & Zimmerman, an office fumiture manufacturer. Complete the missing words. Preparing a Business Plan ‘The business plan is en important document with two essential functions. It aims to convince possible investors and other stakeholders of the potential of a new business. It also works as 2 guide for the compary in its frst year or two of operation. ‘The business plan normally starts with a title page and outline of the new business. It includes the name, logo and mission statement of the activity. There are normally three main parts to ‘the business plan. First, the Marketing Plan, This includes a description of the products and services, an. analysis of the market, a survey of the competition and a basic outline of promotion and selling strategies. ‘The next part is the Financial Plan, which includes details of start- | up costs, a profit an tos forecast forthe fest year or two (or | maybe three) and then a calculation of the break-even point. This is to show when the business expects to begin making a profit. Then there is usually a People and Action Pian. This explains who is involved, and states their roles and responsibilities, their experience and abilities, The Action Plan explains what will happen in the important first year of the business, ie. during the start-up phase. Finally, the business plan has some information on the location, perhaps with photographs and architect's drawings. At the end there are the Appendices, containing any additional and detailed information or support material. SECTION 6 Gorliz & Zimmermar : Business Plan April 6 2001 Contents al 32 P and. 33 B _-— point 4P andA_____plan PP scent canna Sean neresreict ‘There are diferent ways to structure a business plan, Some are shorter ane! ‘Simpler than the above model. Others ara much mors complicated,Pegg eee ee aerate Peer 4) Sequencing and A2 Management By : timing: a Gantt chart Objectives (MBO) Akey aspect of planning is sequencing and timing. A commen management Management By Objectives (MBO) was originally developed by Peter Drucker tool for this is the Gantt chart. Complete the missing words in the Actions (1985). Look at the ciagram below and completo the dialcgue underneath using 4 word that means the same as the terms below (in the same order) Neocon | ee (Fear | cre rom bot rine ee tet var ‘iow an shack oh Ee ES] ES f pains a 8 Suomi _ John: What is Management By Objectives? Jane: MBO isa (1)___management __ approach. It is designed to help realize the 2)" of an organization, John: ‘The targets? Jane: Yes. John: So, how does MBO work? Jane: ‘The first thing fs to have an organizational : : : | @) ___. This is the method to reach the Complete bt a = goals. But itis very important that 4) z eae and (5) Work together to create the goals. Jolin: So everyone owns the goals? Jane: Exactly, Everyone's (6)__________is vital. So the alter the (3) goals are agreed, as is the time period in which those goals send (3) (to the ctient) should be achieved. Then the plan is put into action, This is speak to or write to written legal agreement eyvou 2 a At thls point, there is regular 3 offer or tender acceptance; non-acceptance @) and (9) Hh 4 comments or suggestions re-examination typical management task. But again, in MBO, everyone is involved. So everyone provides (10) seine PP et 10g apt aes ‘Soe also: Test 51 The control process: PP cut: oer tetA3 Total Quality _ Management (TQM) ‘TOM is a management philosophy in which quaity is an absolute priority. Read the statements below. Fil in the spaces with @ word that means the same as the word or phrase in italics below. 1 Product quality is there | Tabi lity, d_ serviceability and dependability of goods or services. extent to which the user can trust the product / extent to which the product will last a long time ‘TOM ts a much wider philosophy than just quality control TOM is a concept that covers the whole process of meeting © ne what the buyer requires TOM aims to ensure continual i in products and services, better quality TQM must be part of the overall ¢______ of the organization, ‘ethos and philosophy TQM is essential to thes ___ of the organization. long-term policy objectives Successful TOM gives businesses a ¢ a better prospects than other businesses in the same market 7 P SECTION 6 TOM uses improvements in quality. d___ to demonstrate ‘mumerical information from research TOM includes customers and s __ objectives _ in setting quality companies who sell parts or components, or services, to other companies ‘TQM recommends improvement of employees’ s_ t — through, abilities and campetence / courses ‘TOM requires good p___ ce. -__int and _ at all levels of the organization, involvement / working together / groups "(got laid cff because | guess { made poor quay cars: In sixteen years not ‘once was | ever asked how to do my jab better. Not onc.” Redundent car worker Deucker°, 1968, qucted in Hernagan, 1968, 2.188, Naturally, many ‘management gurus’ nave written about the importance of ‘quality. Peters and Waterman (1982) aro two oF the mast important, See ‘also Philp Crosby (1979) who emphasized the role of pegoie ragponsiole for ualty improvement. Hore are two definitons of Total Quality Management: “An intensive, long-term effort to transform all parts of an organization in ‘order to produce the best product and service possible to meet Needs" Hannagen, 1998, p.174 customer "An approach to control that integrates quality objectives into a Imaragement functions to continually achiove higher quality’ (Black en Porter, 2000, 80844 Corporate strategy SECTION 6) Corporate stratagy is described below as a combination of eight aspects, Read the questions on the left and choose the correct answer from the box. eee 3 Who are our customers? seer ‘What do they need? 4 What threats and opportunities are there? 5 What are our strengths and weaknesses? 7 How do we get to where we want to be, with our present resources? 8 What do we have to do now? P What is our business? mission statement Where do we want to go? How do we achieve our goals in. terms of marketing? action plan analysis of resources. ali of extemal corporate objectives environment marketing plan market reseerch --rHissiom-etatemont strategic plan ‘Tha corporate strategy cf an organization combines: + @ statomant ofthe core functions of the bushess 1 * ito ome anc gous «how to achive its aims and goels ‘Comporate strategy fs both an overview of where the organization fs now anc: ‘a description of what is necessary to take it forward. AS Strategic | management Strategic management is how a business tries to achieve its goals, using any available resources. The Bily Goats Gruff sa Norwegian farystory about tree {goats who fight for their freedom against a monster - and win, Big Billy Goat Gruff: We are here First. then ... then .. finally and we want to go there. We need 4 strategic plan.’ Tm going to eat you up. = T'm going to eat you up. ~ No! My brother is coming soon = No! My brother is coming soon and he's bigger than me. and he’s bigger than me. ~ Okay! You can got = Okay! You can go!= Fm going to eat you up. = Oh, no you're not! Mark the following statements Trus or False. 1 Strategic management is a process, not a single event. Cirud}False Strategic management involves top managers and not subordinates. Good strategic management monitors results and makes changes. Strategic management is concerned with actual resources, not future resources. Strategic management uses tools like the ‘product life cycle’ to plan future actions. Bill Gates is a good example of an effective strategic manager. Strategic management is the same as having a strategic plan. Corporate strategy and strategic management are the same thing. ‘True/False ‘True/False ‘True/False ‘True/False ‘True/False ‘True/False True/False CASH GENERATION {market share) High CASH USE (growth rate) Mark the folowing statements as Tiue or False. 1 The Boston Matrix is a strategic planning tool. 2 Managers can compare the finances of Strategic Business Units (SBUs) inside one company. An SBU is a cash cow. Dogs often become stars and make a lot of money. Cash cows require a lot of investment. Stars have low market share but a lot of potential. Question marks inay become dogs or stars. Cash cows may become dogs. oar eereo ‘The Boeing 747 is the cash cow of the Boeing Corporation, 10 An example of cash cows that became dogs is the 5.25" floppy disk. 46 Portfolio analysi SECTION 6 Is Portolio analysis was originally created by the Boston Consulting Group (BOG). It uses the Boston Matrix, a management fool +o help companies make rmaxinum prof from their compete range of products or services, Gap ralse ‘True/False ‘True/False ‘True/False ‘True/Palse True/False ‘True/False ‘True/False ‘True/False ‘True/Falsesection A7/ Management organization A Management of a large company is often hierarchical. Here is a typical model of management exganization showing one dvision watthin a company. Complete any missing words. f you have problems, look at the box bbw Chie’ (1) Exece | verses is sen at at coo, petcin foe aly We ocr FO Sty MY Slaw Mane Soar | Director Prodicion Sales Making France Human | Foe Sane nn Cie feces, | Chana BT NE rege Soper a cw a) | [qe san | Sees Manager Moreee | — ® Proaueten Market Frac ntolee Aasminstraivs MANAGEMENT Contoter | Rareweh cent and gas oftoers Boy | (a). fa Gere — Gtical-«— enone one 1" 42 13 4 6 16 7 18 19 20 abbreviations What do the following abbreviations stand for? SME Small and Medium-sized Enterprises BCG MRO. MBWA, ‘TOM — QUEST sBU SWOT ay eereeeeececstestiee cad CAM Dss HR Ir —__ a — MRP ROI see FMS Eee ees EES EEE Sees BEP. CEO Sees eEECECH eae oB _ Decide which of the above is concerned with ‘The culture and practices within a company or organization. ‘The volume of production required before there is any profit. ‘The boss in a large company or organization. Total automation of a production process, Working out what is required, and when, from suppliers. 6 7 8 9 10 1" 12 13 4 15 16 "7 18 19 20 P Ensuring there is no waste through storage of components or finished products. Everything to do with personnel, SECTION 7 A motif for ensuring quality in everything the company does. A management approach based on goal-setting, ‘monitoring results and making necessary changes. [A specialist firm that created a tool to help analyse the success of individual products and product areas. Everything to do with hardware and software. Businesses employing fewer than 200 people. A method of analysing the profitability of a company or activity. An individual cost centr the wider company activit product or group of related products. in terms of its cont tion to , perhaps based around one A. combination of tools, both in software and in other forms, to help managers in decision-making, ‘A key management function described by Peters and Waterman (1982) which involves going around and looking, listening and thinking about what is going on. A tool for planning marketing that involves examining factots inside and outside the business or organization. Computer software used in manufacturing industries to help product design. Computer software to help with operations management in manufacturing. A management approach based on quality in all aspects of company activity from sourcing, dealing with suppliers, treatment of employees, relations with customers, product design, manufacture and delivery, after-sales service and relations with the community. Zev a8 mn pay fy 28 0 me fav asin my /ou/ as owe ‘ju as 9 you comme Notice the pronunciation of the names of the folowing letters (vows)SECTION 7 53 Financial control NEW 5000-ROOM HOTEL OPENS (Company Chairman Fred Frpefal says Wi the curren igh currency valuation, decline in tourism and rocketing ol prices, and the general ezonomic decline, we expect to break even by about 2093. Financial control depends on doing the right thing at the right time. Financial control also depends on analysis of various key indicators, Match the words in the box to the correct definition (1-7). budgetary control efficiency leverage: relurn on investment (ROH) | break-even point liquidity pretest Ratio of cost to benefit profitability total investment = measure of profitability. ‘Total income + Ratio of total debt to total assets. Ratio of amount of sales to total cost. Volume of sales needed to cover costs and begin to produce profit. soo ker System to ensure that financial targets are met, Nétles the folowing word teri. noun ‘adjective verb ‘ofciency efficent ‘prof, prontabity _proftate (0 prof fforn something) ‘Measure of how well a business can meet its short-term cash needs. 54 Research and Development (R&D) It is very important to cary out research before entering a new market, or developing new products. Choose the correct definitions for each term. In some cases, more than one deffrition is correct. 1 Marketing research Studies to find information that will inform marketing policy. @ stustes of consumers and customers. © Research to find out waere to st products 2 Research a) Studies to find out what a company should do. b) The same as Research and Development. ©) Areport on research. 2 Development a) Increased sales for a product. b) Selling into export markets. ©) Work on creating a product for a target market. 4 Primary research _a)_‘The first research a company does on a particular problem. b). Original research carried out by a company. ©) Information sold by specialist agenci 5 Desk research a), Research which is based on published material, internet, etc. b)_ Studies into the cost of office equipment. ©) Study of a new market or location without actually vi6 7 SECTION 7 Secondary research. a) Research that is out of date. 'b) Studies which are available to the public from government or specialist, agencies, pethaps free, perhaps at a cost. ©) Poor.quality research Field research, a) This is also known as fieldwork. ) Physical activity of visiting a location to find out information through person- to-person interviews ©) Reading published material. Market research —_a)_-Studies to find out about consumers. ) Studies to find out strengths and weaknesses of products. ©) Siudies to find out what consumers think of different companies. Development is not the samo as rosoarch, although the terms are often sed togathor in the phrase research and development (RAD). Research ‘aks place botore ¢ product is made and launched: In ths phase research ccofheldes with deveboment, Later, further research may indicate changes 10 an established succzssful oroduct. Ip this case, the product may be developed over mary years, with innovations to keeo up to date wit’ technical improvements and changing customer needs. 5 International oar enw oe e " 2 13 16 on on organizations What do these abbreviations stand for? NAFTA North American Free Trade Agreement ‘OPEC BU NATO UN WHO ASEAN IMF ECB FDA OECD MNCs FIFA ‘The companies below are all MNCs (rrutinaticnal corporations). What do their initials stand for? om General Motors BM CNN NEC TAL SECTION 86 SECTION & 5 International marketing Comparies which want to expand into intemational markets need to consider many factors. Match gach of the factors (112) to an appropriate explenation (a. Factors for consideration Meaning 1 Location and a Skills, training and flexibility of distance workforce, 2 Political context | b Transportation, roads, telecommunications, public services. 3. Labour costs © Investment needed for land, property, energy (light, heating, fuel). 4° Inirastructure Typical business practices, security, commercial expectations, 5 Distribution @ Way of life, public and private channels differences in language, religion, values and expectations. 8 Labour factors f Cost of living, inflation, interest rates, taxes, growth, financial stability, 7 Economic Q_ Stability, system of government, environment democracy, human rights. Business culture | fh Salaries and wages for local staff. 9 National culture \ i Geographical position in relation to ‘nome base, bth rate, life expectancy, literacy, average level of education, 10° Legislative i environment 11 Socio-cultural factors k 12 Fixed costs It Systems for selling goods and services. Laws, trade regulations, membership of international groups. P «Compares ener eration mares to merase te turnover and profits Lrge multinatonal companies rom developed counties may locale operations in devellng counties because lebours cheap They mey aco sot up n other developed counties because they want 10 7 be closer to new markets and to reduce distribution costs. i +See alo: Tost 6 Maxkatna A] SECTION 5 1 Working across frontiers ‘A business that wants to set up an operation in another country has to do a lot of research and panning, Read the e-mail below from someone who is planning to set up an office to sell products in & new market Complete the gaps (1-32) in the e-mail with suitable words. ‘Thoro are five sections in the e-mail below, Label each section (1-5) with one of the terms in the box, Bureaucracy Culture Financial issues Marketing Property ew ee Sd | © Sere 7 pene ea 2) ae (1 Culture ‘As we are going to work in a foreign county itis important to leam the (1) 1 Just as important, we must learn about the (2) ¢_ _ differences. Also, it would be useful to have some (3) ¢_p _ people who know the country. We also need to know about travel and (4) trans _ There is a lot of (5) b_ ——£¥ Firstly, we will need (¥___sand ()1_s_d____ permits. Personnel need to register with the (8) h__ I t h and social security system, although they have private (9) m_d_c__ insurance The | business must be registered with the local | (lo)a_thor One of these is the (11) t__ office. |(32) ¢______# connections immediately Presence ain orto SECTION 8 Research is necessary on possible government (12) gat sto new businesses, There might be (13) t __ incentives for setting up new activities. We must learn about the (14) 1 _ g_ framework. There might be import or export (15) d_t ur business also needs local (16) b__k ili bank (17) a_¢__n__ and foreign (18) © Alot of (19) mar _ is required. ‘We have to knaw about the (20) ¢_m p_ —p,and just as importantly the possible (21) ¢_ st _ ‘We want to know how to (22) p__m o_ _ our business and how to market the company. We wonder if (23)d_.___t selling is best, or if we need to use (24) a_ et _ and local @5)d__ tr b__. We have to set up a sales (26) n. . Naturally, we need local Qn1_pre_ ie The question here is do we (28) b__, (29) ___ or | (G0) |__ 5 €? We should contact local (31) ¢51—_ agents. Of course the business will need telephone and | 0 do rasesrch, to carry out research, to undertake research ‘and the noun or noun phrases: research, research costs, research and develocment (R&D). 58 clovalization “"" A definition of globalization: ‘A condition marked by decreasing geographical constraints affecting trade, communication, security, aid, investment, industrial and | Commercial ownership, wealth generation and environmental awareness.’ \Whien words from the definition above do you associate with each of the factors boon? 1 multnational corporations trade, industrial and commercial ownership. investment. wealth generation 2 Internet 2 alr transportation 4 defence and military alliances 5 loans to developing countries 6 global warming 7 transnational companies _ CSaeth A digssssssososososasasanasasseSG(G/G(G/E(EEIeIsESESESESIStStStStStStStSSISIS#SiE 9 NATO a 10 NAFTA EEE EEA ELE 1 oon Seeeeeeeeeeeee 12 tourism13 14 15. 16 7 18 19 20 SECTION 8] information technology —_——___________-—-— share ownership = global capitalism franchise operations eee seesneesaaststasiseeeedsastoseceetetssaaaaasasceeeennteace population growth Microsoft aageagegbeeEL eeu aESEEEE US Supreme Court Globalization reaches the remotest parts. “The fact thal the 20 terme inthe list ae related to so many aspects of jlobaizaton & an indication of how ITportant globalization has become in. curves. 9 SECTION 8 5 Cultural issues A Bolow are sixteen different cultural values. Metch 1-8 to the contrasting phrase n ah 1 individualist culture @ egalitarian culture 2 consensus-minded-culture b high-context culture 3 deferential culture © specialist and technocratic management 4 high jox-mobility 4 soft, customer-focused § _low-context culture © low job-mobility 6 loyalty to the company 4 group-oriented culture 7 broad-based managerial skills g_ loyalty to oneself 8 hard, corporate values h competitive culture 8B Complets the sentences below with a phrase trom part A, 1 A-cultute where people work collaboratively and co-operatively and do aot try to stand out from the group, and where community interests are cauch more important than personal ambition is a__group-oriented culture 2 Acculture where managers pay a great deal of respect to their seniors or their elders, and where subordinates show respect and humility towards managers, is a 3 A culture where typically people stay in the same job for many years, probably living near theit family home, has 4 Ina cultare where managers typically have a wide range of abilities and are not necessarily specialists, it is important to haveSECTION 8 ‘A corporate culture where there is the view that the company exists to serve customers, and that the customer is king, can be described as ‘A culture where little attention is paid to relationship-building, where business is the priority, is a___ ‘Where employees represent and defend their company, and respect and identify with its values, there is strong 8 A-culture where everyone is trying to increase a range of personal benefits, including their own status and identity within the group, is a___ ‘Come on! This company has a ‘competitive, go-getting can-do culture” QP se al! Tost 21 Cute varanes SECTION 8 60 Global issues and the future ‘This testis the result of a brainstorm on developments in the next fity years. ‘Match each of the predictions (1-11) with evidence for it (a-¥) 1 Less use of oll as main @_The US dollar takes over completely source of energy. under the World Bank. 2 More leisure time. b Astronger and fairer World trade ‘Organization. 3 Breakup of © More use of solar power. ‘multinational compar 4 Revolution in house More use of gene therapy and design. less disease. 5 A world currency. © Amend to the gap in wealth between rich and poor countries. 6 Frequent space travel. f People working fewer hours. 7 More genuine free trade Fewer global companies, mote around the world. small and regional businesses. 8 More respect for the 1h Solar-powered capsules on environment. monorails © New transportation 1 Holidays on the moon. methods 10 A fairer world. J New kinds of domestic architecture. 11 Massive advances in. k Amend to waste in production medical science, and consumption.Answers Test 1 te 2g 3a 4) Sb oc 7h 8d 9k 10f ul it Test 2 : PLANNING ‘ORGANIZING identifying needs | putting systems setting objectives | in place maging resources deciding stategy time management Identifying change taking on new staff LEADING ‘CONTROLLING commuricating wih), comparing results staff wh targets teartbuikling | monitoring quality supervision ‘standards empowering tat to tale decisions Test 3 1 Managers are responsible for ‘the process of planning, organizing, leading and controlling the efforts of organization members and of using all organizational resources to achieve stated organizational goals’. “(Management is) the process of ‘optimizing human, material and financial contributions for the achievement of organizational goals’ 4 A modern view of management, expressed by Sir Roland Smith, is that ‘Management should be based on innovation, marketing and ask’ 5 ‘All managers may be involved ‘with the operational aspects of management but as they are promoted and develop, their role becomes increasingly one of planning, irmovation and leadership 6 Management is ‘the process of assembling and using resources human, financial and material, ‘and information ~ in a goal- directed manner to accomplish tasks in an organization’. Test 4 ‘emotionally strong ‘mental skills good communicator ‘technically skilled flexible soctal skills creative leadership sensitive to others 10 knowledgeable Test 5 ta 2b 3a 4h Sa 6a 7a 8b Test 6 A 1 Selling things that don't come back to people who do. 2 Everything a company docs to Influence demand for its products and services. 3 Promoting and selling goods and ‘services B 1 Product, 2 Price 3 Place 4 Promotion 5 People 6 Process 7 Physical evidence Test7 1 False 4 Tue 2 False 5 True 3 Tue 6 False Tost 8 1 JustIn-Time 2. Corporate downsizing 3. Fmpowetmert $ Teamworking 5 Reengineering 6 Total Quality Management 7 Outsourcing 8 Learning organizations Test 9 Al Tue 5 True 2 Tre 6 Talse 3 False 7 False 4 False 8 True B Theory X Theory ¥ work is a necessty | communication direction participation traditional co-operation orders creativity control oder secu work is natural Test 10 ‘Autocratic leadershi directive 7 hierarchical ¥ traditional ¢ Democratic leadership ‘roup-oriented ¥ team-based ¥ communicative ¥ Laissoz-taire leadership ‘open ¥ co-operative ¥ creative 7 Charismatic personality-driven ¥ goal-oriented 7 inspirational ¥ Test 11 1 innovators 2 producers: 3 mentors Test 12 Alb 2d 3a se Se 4 monitors S controller 6 leader ANSWERS B 1 methods 2 options 3 mediator 4 communications skills leader Tost 19 AY drives reach 3 outcomes 4 behaves S willingness 6 effort B Level 1 Physiological needs Level 2 Saiety needs Level 3 Social needs Level 4 Esteem needs Level 5 Self-actualization Test 14 1 win 2 common 3. agreement 4 demands 5 concessions 6 Fighter 7 Creative 8 Win/lose Test 15 A 10 u 12 3 10 2 ‘objectives definitions leader, teams costs, budget tender proposals negotiate contracts plan, schedule ‘support monitor results objectives / 1 alms definitions / b terms Teader / d co-ordinator teams / { groups costs / n expenses budget / 0 financial plan tender /f offers proposals / g submissions negotiate /a discuss contracts / j agreements plan /c organize schedule / set time targets support / assistance monitor / h check results / m outcomesTost 16 1Bw 3 Az s Dv DEX acy Test 17 A 1 Values (©) Having a clear structure (©) Beliefs (C) Formal sources of authority (0) Assumptions and attitudes (C) Norms (C) Objectives/Common purpose (C) Relationship between contre) 9 Shared experience (C) 10 The system (0) B A: How is omganizational enlture created? What ist? B: Organizational culture is a set of basic assumptions or what people think, in a company or ‘organization. Az $o t's based on common values? B: That’ right, Everyone learns these over time They learn the way of doing things, the norms. And everyone agrees that they are right” B: Generally, yes. A; And where do they come from? B: From shared experience. From history, fraction and common beliefs. A: And new employees usually learn the same things? They learn the system. B: Exactly. Everyone learns the same organizational culture, Tost 18 1 traditionsl 2 flat 3 closed 44 informal 5. rules, regulations © market 7 top-down 8 flexible, departments 9 Creativity 10 systems, people heroes stories, myths symbols Test 20 1 dimensions 2 power distance subordinates 3 4 5 threat 6 Individualism 7 collective 8 masculinity 2 femininity 10 Asse 11 competitiveness 12 masculine 13. environment 1 2 3 4 sponsorship 5 6 7 8 forms guage wgazine ards, ceremonies mncertainty avoidance iveniess a 2i 3h ad 7g Ba Of 22 > t a ‘organizational ‘groups influencey status/ control control influence lose looking compromise status / influence Tost 23 5 5 £ (or possibly h) © h (or possibly f) 7b 8 9 e a a Test 24 (bh) Comperition Factors (3) Intemational enviconment {6 Domestic environment {&) Government/leal factors {b) Technological environment (@) Environmental pressures {© Consumer neeesieants {d) Industry envizonment Tost 25 Al False 5 Tue 2 False 6 False 3 True 7 True 4 Tue B Higher profits + Quality-based competition Few competitors Difficult market to enter Fow new players in the market Few substitutes Many customers Many suppliers Fragmented customers Lower profits Price-based competition Many competitors Easy market to enter Many new players in the market Many substitutes Few customers Few suppliers United customers ANSWERS z y child labour air pollution ‘working conditions fraud food star rellablty soll contamination, safety standards dards >>> rrre soo0o0K00 Test 28 1 2 3 ‘A product testing BcP A safety mask for a welder BHsS A safety cap on a cleaning agent BCP A ergonomics BHES Avivisection BCP Aaic-conditioning Buss Aswarning notice on @ psint tin B CyHES A protective clothing BHSs Test 28 1 2 advertising, Impulse testing vivisection whistle ‘opportunities confidential sifts hospitality, promotionTest 30 te Ze 3a 4b $8 Tce Gece) erie acre Tost 31 yy 2f 3a 4d SB oh 7b Be 91 1e Tost 32 1 predict 2 assess 3 set 4 plan 5 implement 6 monitor 7 measure 8 reward Test 33 ‘innovation invention inventor patent development market diffusion range integration 40 decline Test 34 1 training manager retraining ualitication aduate Eurcculum vitae (CV) research skills audit training budget human resources 10 seminar 11" staff development 12 lecture 13. trainer 14 trainee 15 in-service training Tost 35 1b 2h 3g af per reckindiiga ANSWER! Test 36 A 1 discussion 2. teleconferencing 3 qualtty circles 4 voice-mail 5 internal miail/memos 6 post 7 intranet 8 extranet B Written/printed communication ‘memos notice-board company reports, newsletters post internal mail ‘Speech communication face-to-face departmental meeting formal presentations ‘quality circles ‘Machine communication e-mail fax internet voice-mail intranet ‘telephone extranet video-tape teleconferencing Tost 97 Stage 1 Planning and preparation Stage 1 Relationship building between negotiating parties Stage Ul Information exchange Stage IV Persuasion attempts stage V Concessions or compromise and agreement ANSWERS Tost 38 Test 41 1 strategie plan 1 Contact client 2 planning 2. Obtain contract specifications 4 objectives 3 Submit bid 4 tactical plan 4 Receive feedback 5 operational plan 5 Revise bid 6 interim plan 6 Submit revised bid 7 provisional plan 7, Final approval or rejection 8 business plan 8 Complete bid review 9 action plan 10 budget 11. contingency plan Test 39 [ Expo Marketing Consultants SWOT Analysis for GUBU (Toys) Ltd Strengths Woaknessos 1 Reliable and committed workforce 2 Use of wood ~ seen as ‘good for the environment’ 5 Beautiful handmade toys 3 High labour costs 4 Location ~ far from population centres / far from new markets 6 Poor communications systems / limited technological skills 8 Lack of IT training in staff ‘Opportunities 7 Intemet as potential marketing, tool / e-commerce 10 Potentially strong demand in Germany and Scandinavia 13 Selling by new channels, e.g. mail order Threats 9 Declining interest in domestic markets for traditional toys 11 Competition in Germany and Scandinavia / Baltic countries 12 Increased competition from mail order companies Tost 40 2 Marketing plan 2.1 Products and services 2.2 Promotion and selling 23 Market 2.4 Competition 3 Financial plan 3.1 Startup costs 4.2 Profit and loss forecast 3.3 Break-even point 4 People and Action plan. 8 Location © Appendices Test 42 ‘management goals strategy management staff Ownership, performance evaluation. feedback BemvaununnTost 43 1 reliability, durability customer needs, improvement, culture strategie planning ‘competitive advantage statistical data supplies 9 skill, training, 10 participation, collaboration, teams Test 44 ‘mission statement corporate objectives ‘market research audit of external environment analysis of resources marketing plan strategte pian ‘action plan Tost 45 1 True 2, False, Normally strategic ‘management involves @ Tot of comimunication and feedback, 50 subordinates have an important ole. However, top management have the main responsibility. 3 True 4 False, Future needs are also ‘considered, so new resources may bbe obtained from investment, Tae Tue False. The strategic plan is part of strategic management. ‘8 False, Strategic management is @ necessary process in order 10 achieve the objectives of the corporate strategy. ANSWER, Test 46 1 True 2 False, It may be, but not necessarily, 3 Te ‘False. They lose money and cuswally die. 5 False, They generate 2 lot of income for relatively 1ow investment 6 False. Stars have high market share and high potential 7 True 8 True 9 Tue 10 True Tost 47 A. 1 Executive Director Finance Human Company Middle Department Manager Jonior 10 Area L Officers 12 Teams B_ } Hierarchical 2. traditional structure 3 functional 4 manufacturing 5 large enterprise 6 complex Tost 48 A 1 information technology 2. data processing 3 artificial intelligence 4 electronic funds transfer 8 6 electronic data interchange information system security end user Tost 49 la 2b 3a 4b Sa 6b 7a 8b 9a lb Wb 13a Ma isa Test 50 A-NOUN: THING, analysis, appraisal, compensation, development, employment, interview, plan, recruitment, selection, training NOUN: PERSON analyst, appralser/appratsee none, developer, employer! employee, interviewer/ interviewee, planner, recruiter selector, ‘rainer/trainee VERE analyse, appraise, compensate, develop, employ, interview, plan, recruit, select, train 8 1 inservice training 2 snuctured interview 3 job-sharing $ oak nian performance appraisal 6 job rotation re 5 feward systems 8 sexual harassment 9 equal opportunities 10 cater path 11 glass celing 12 Stuations vacant 15 carly retirement 13. compulsory redundancies Tost §1 1 process 2 constant setting ‘monitoring ‘objectives / goals feedback communication8 Slowchart 9 outcomes 10. goalsobjectives AL action 12. performance 13 measure 14 alterations 15 goal-setting Test 52 A 1 Small and Medium-sized Enterprise 2 Boston Consulting Group 3. Management By Objectives ' Management By Walking About 5 Total Quality Management 6 Quality in Every Single Task 7 Return On Investment 8 Strategic Business Unit 9 Strengths, Weaknesses, Opportunities, Threats 10 Computer-Aided Design 11 Computer-Aided Manutacturing 12. Decision Support Systems 13 Human Resources 14 Information Technology 15 Just-In-Time 16 Materials Requirement Planning. 17 Flexible Manufacturing System 18 Break-even point 19. Chief Executive Officer 20 Organizational Behaviour B 108 IT 2 BEP 12 SME 3 CEO 13 ROI 4 PMS 14 SBU 5 MRP 15 DSS 6 JIT 16 MBWA 7 HR i? SWOT 8 QUEST 18 CAD 9 MBO 19 CAM 10 BCG 20 TOM Test 63 1 profitability 2. Teturn on investment (ROT) 3 liquidity 4 leverage 5 efficiency 6 bresiceven point 7 budgetary control ANSWERS: Tost 54 1a, band c are all passible 8 a, band care all possible. Tost 55 A 1 NAFTA North American Free “Trade Agreement 2 OPEC Organization of Petroleum Exporting Countries 3 FU__ European Union 4 NATO North Atlantic Treaty Organization 5 UN United Nations 6 WTO World Trade Organization 7 WHO World Health Organization 8 ASEAN Astociation of South, East Asian Nations 9 IMP Intemational Monetary Fund 10 ECB European Central Bank 11 FDA (American) Food and Drug Administration 12 OECD Organization of Economic Co-operation and Development 13 MNCs Multinational Corporations Federation of. International Football Associations: B 1 GM _ General Motors 2 58M Intelligent Busi Machines 3. CNN Cable News Network 4 NEC Nippon Electric Company 5 JAL Japan Air Lines 14 FIFA Tost 56 it 2g 3h 4b sk 6a 7f 84 Se wl Uj we Test 57 A 1 language 2 cultural 3 contacts 4 Sanponation 6 visas : 7 residence 8 health 9 medical 10 authontics Tt ux 12 grants 1 tx 1H egal 15 ties 16 banking 17 accounts 18 curency 1 market research 20 competition 21 customers 22 promote 23 iret 34 agents 25 distibutors 26 network 27 representatives 28 bay 29 cent 30 tease 31 estate 32 computer tute 2 aresucrac 3 inane sues 4 Marketing 5 Propesty Test 5 1 multinational corporations > ade, ina and comer ova ‘reat gnetontnesimet. 2 Intent connie, ate A tsporaton > cremation mie 4 Stee and maar alaness > scary 5 ans to deviogng counter» at tad ives 6 global warming > emironmentat sayareness, trade, wealth gveration ANSWERS 7 ransatona companies > nds smd emma nme, tae 8 WIO> tute, iistril and commerce rm, wel gration, isnt 9 Nato» un 10 NAFTA ay nts ana Comme emer, wean enti, ‘meinen 11 UN certhing 12 team comma, ay wath 15 information technology > Sma sna ints an comme wri sweaith generation a 14 Share omer» ta mestmet Indust and comet nner ‘eit senaion 15. floba captain > tae wear ene, ison, ri! ad ovmael ome, 16 eanenise opetion > ad, Sesotho cue, wentn fence 17 AIDS > crviomenta ores 1 eronaconsrmih > envonmentat twas a 19 Micron trate, commancaton Intl an coma ene, ‘eit onan 20 USsupreme Coun > rade, Common, sal rd ‘ommeciatommerip wth geneaton The answers ven ate suggestod answers, The ist could be ner in some cass. Test 58 Alf 3a 5b 7e 2h 4¢ 6g 84a B 1 group-oriented culture 2 deferential culture 3 low job-mobility 4 broad-based managerial skills S soft, customer-focused 6 low-context culture 7 loyalty to the company 8 competitive culture stWord list “The numbers sefer to Tests, not pages. action 32, 38, action plan 51 ‘administrative 47 advertising 29 advertising standards 30 advice agents 57 agreement 37 aid 58 AIDS 58 alliances 23 animal rights 27, 28, 29 appendices 40 appraisal SO artificial Intelligence 48 assertiveness 20 assess 32. assets 30, 53 Association of South East Asian ‘Nations (ASFAN) 55, assumptions 17 attitudes 17 audit 44 authority 17 automation 31 bank accounts 57 banking facilities $7 ‘behaviour 7 ‘oellefs 17 bench-marking big 41 Boston Consulting Group (BCG) 46, 52 Boston Matrix 46 breakeven point (BEP) $2, $3 budget 15, 38 Ducgetary control 53 bureaucracy 57 business culture $6 business management 38 business plan 38, 40 49 ‘capacity planning 49 career path 50 cartel 26 cash cow 46 cash needs 53 ceremonies 19 change 2, 31, 35, 51 change agents 35, 37 change and communication 36 checking 32 ‘Chief Executive Officer (CEO) 1, 52 dlothing 28 collective responsibility 11 ‘commercial ownership 58 communicating 2 ‘communication 32, 38, 36, $1, 58 ‘communication channels 18 company law 30 ‘company magazine 19 comparing 2 compensation SO competition 24, 25, 31, 57 competitive advantage 13 competitive culture 59 ‘competitiveness 20 ‘Computer Aided Design (CAD) 49, 52 Computer Aided Manufseturing, (CAM) 52 Computer Integrated Manufacturing (CIM) 49 computers 36, 48 concession 37 confidential information 29 conflict 12 conilict management 12 consensus-minded culture 59 consumer needs 31, 43 ‘consumer protection 28 ‘consumers 24, 27 ‘contacts $7 contingency plan 38 contingency theory 5 contract 15 control 52 controller 47 ‘control process 51 controlling 2, 3, 7, 32 corporate downsizing 8 corporate strategy 44, 45, corporate values 59 cortuption 26 cost-to-benefit ratio $3 costs 53 cultural differences 57 cultural issues 59 cultural values 59 cultural variance 20 ‘culture 7, 17, 20, 21, $2, 59 ‘currency 60 ‘cutticulum vitae (CV) 34 customer-focused $9 customer needs 44 ‘Customer Service Manager 1 customers 27, 57 dangeross goods 30 dts anaiyas 38 dts procsting 48 data protection 26 de 8 delsion-making 48 Deaton Suppo Systems (DS) 52 defence and nary lances $8 deferential cure 39 definitions (of managemend 3 delegate 16 demand 6 deroqraph change 31 demnopaphy 24 design capa 49 dakresach 4 developing countries $6, 58 thet eling £7 Slacriminatio: 26 Sierution se distbutor 87 Drucker eter 42 dura 43 ‘ecology 31 ‘economic envzonment $6 effective capacity 49 ‘efficiency 53 egalitarian cuture $9 ‘electronic datz interchange (EDD) 48 electronic data transfer (EDT) 36 electronic funds transfer (EFT) 36, 48 e-mail 36 WORD List employ 50 ‘employees 27 ‘employment 50 empower 2 empowerment § ‘energy resources 60 environment 24, 27, 30, 31, 60 envitonmental awareness $8 enviconments 24 equal opportunities 23, 29, 30, 50 exgonomics 28 estate agents 57 ethics 23, 24, 26, 29 European Central Bank (ECB) SS European Union (EU) 55 evaluation 15, 32, 42 Exports Manager 1 extemal environment 44 face-to-face communication 36 fax 36 feedback $1 field research 54 finance 49 Finance Director 1 financial control 53 nancial enviconment 31 financial issues $7 financial plan 40 financial resources 3 fixed costs $6 flat organizational structure 47 Flexible Manufacturing System (FMS) 2 Aowchart 49, $1 Food and Drug Administration (FDA) $5 foreign currency services 57 Four Ps 6 franchise operations $8 free trade 60 Gantt chart 41 ‘gender politics 23 zene therapy 60 gifts 29 lass celling 50 ‘global capitalism 58 ‘global issues 60 global warming $8 slobalization 24, $8{goalsetting 51 goals 33, 32, 42, 44, 45, 51 govermment 24 government grants 57 grapevine 36 group dynamics 9 roup-orlented culture 59 hands-on management 7 bharassment 50 Havvthorne studies § health and safety 28 health and social security $7 heroes 19 hierarchical organizations 9 hierarchical structure 47 hierarchy 7 high/low-context culture $9 Hofstede 20 home-shopping 36 ‘hospitality 29 human resources 34, 49, 50 Human Resources (HR) 52. Human Resources Director 1 impact of change 35, implementation 32 import or export duties 57 ‘impulse displays 29 income 53 individualisia 20 individualist culture 59 industrial ownership 38 industry 25 informal communication 36 information and data handling 48 information exchange 37 information system security 48 information systems 48 Information Systems Director 1 Information Technology (IT) 48, 52, 58 infrastructure 56 innovation 3, 33 in-service training 34 sntranet 12 interim plan 38 international management 3S international marketing 56, 57 International Monetary Fund (IMP) $5 WORD LIST antemational organizations $6 internet 12, 36, 58 interview 50 investment 58 job titles 1 “Time (TT) 8, $2 labour 27 labour costs $6 Inbour factors 56 Janguage 19, 57 law 27 layout 49 leadership 9, 10, 11 leading 2, 3, 7 learning Organizations 8 lease 5? legal environment 24 legal framework 57 legislation 30, 31, 56 leisure 31, 60 leverage 53 liguidity $3 local authorities 57 location 49, 56, 57 logistics 49 loyalty (to company) $9 Machiavelli S Management By Objectives (MBO) 42, 52 Management By Walking Around (MBWA) 8, 52 management control 47, $1 ‘management functions 2 management organization 47 management philosophy 43 ‘management style 7 management theory 8 ‘manager (characteristics of) 4 managing change 32 Managing Director 1 market 18 market research 44, 54, 57 market share 46 marketers 6 marketing 6, 44, 57. ‘Marketing Director 1 marketing plan 6, 40 marketing research 54 markets 24 Marx & Engels 5 Maslow 5, 13. Materials Requirement Planning (MRP) 49, 52 matrix structure 47 Mayo § ‘measure 32, 51 ‘measuring 42 mediation 12 medical insurance meetings 36 Microsoft $8 middle management 47 mission statement 44 mobile communications 36 monitor 32, $1 monitoring 18, 51 motivation 2, 13 multinational corporations (MNCs) 36, 55, 58 myths 19 national culture $6 needs 2, 13 negotiating styles 12 negotiation 37 nowsletters 36 norms 17 North American Free Trade Agreement (NAFTA) 55, 58 North Atlantic Treaty Organization {NATO} 55, 58 ojectves(eting) 2,18, 17,38, 42, 3 operational plan 38 ‘operations management 49 opportunities 40, 44 ‘organization chart 47 Organization of Economic Co- operation and Development (OECD) 55 Organization of Petroleum Exporting Countries (OPEC) 55, WORD LIST organization 17 Organizational Behaviour (OB) $2 organizational change 35, organizational culture 17, 28, 19 organizational goals 3, 9 ‘organizational renewal 35 ‘organizing 2, 3, 7 ‘outcomes 15, 51 outsourcing & password 48 patent 33 peer competition 23 people 6,18 people and action plan 40 performance 51 performance monitoring 42 perks 26 personnel 47 persuasion 37 physical evidence 6 piace 6 plan 16, 32 planning 2, 3, 7, 32, 37, 38, 49 Politics 22, 56 population growth $8 portfolio analysis 46 power 20, 22 predict 32 preparation 37 price 6, 25, primary research $4 prioritize 16 process 6, 51 product 6 product development 54 product life cycle 33 product management 33 production 49 Production Diector 1 production line 49 productivity 18, 49 profitability 53 project management 15, 41, 47 promoting 6 property 56, 57 proposals 15 public opinion 31 purchasing 49 Purchasing Disector 1 purpose 17‘quality 25, 43 quality circles 36 ‘Quality in Every Single Task (QUEST) 82 quality standards 2 raw materials 24 recruitment 50 redundancies 50 vedundant 43 re-engineering 8, 35 relationship building 37 relationships 13, 23 reliability 43 ent 57 representatives 57 research 32, 34, 49, 54 Research and development (R&D) 54 residence permit $7 resistance to change 35, 37 resources 3, 44, 45 retirement 50 return on investment (RON) 52, 53 reward systems 50 rewards 19, 32 rights 26 roles 11 safety 26, 27, 28 Sale of Goods 30 sales 53 sales network 57 scheduling work 15 secondary research 54 secrets and state security 30 security SB selling 40, sequencing and timing 41 share ownership 58 simulation $0 situations vacant $0 skills 56 skills (managerial) 59 skills audit 34 Small and Medium-Sized Enterprises (SME) $2 social legislation 30 socio-cultural factors $6 wore .st lj sponsorship 19 staff 47 staff development 34 Staff Development Officer 1 standards 27 start-up costs 25 status 22. stories 19 Strategic Business Unit (SBU) 46, 52 strategic management 45 strategic plan 38, 44 strategic planning 43, 46 strategy 2, 32, 42 strengths 39, 44 Strengths, Weaknesses, Opportunities, Threats (SWOT) 39, 52 structure 17 subordinates 7 supervision 2 suppliers 25, 43, sweets 29 SWOT analysis 39, 52 symbols 39 system 17 systems 18, Systems Analyst 1 Systems approach § systems management 47 tactical plan 38 targets 15, 42, SI tarifs, duties and taxes 30 tax incentives $7 tax office 57 Tayloxism 5 team building 2, 11 teams 7, 18, 43, 47 teamworking 8 technology 24, 31 teleconferencing 36 telephone 36 tender 15, 41 testing 28 ‘Theory X 9 ‘Theory ¥9 threats 39, 44 time management 2, 16 top-

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