UNIT 4

COMPANY STRUCTURE

PART 1.  HOW ARE COMPANIES ORGANIZED?

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
передавати повноваження вниз по ланцюжку, стверджувати,
ризикувати, проблеми спілкування, працювати на повну потужність, бюджет
на рекламу, продавці, додаткові опції, запас готівки, доля ринку, кредитні
лінії, розмір прибутку на одиницю, запаси товарів на складі / товарно-
матеріальні запаси, бюджет на дослідження та розвиток, нерозподілений
прибуток, сплатити борг, капітальні активи, рентабельність, чистий прибуток,
ієрархічна/пірамідальна структура, на кожному наступному рівні,
безпосередні підлеглі, помічник менеджера з маркетингу, заступник
менеджера з маркетингу, посада у штаті, той, хто обіймає посаду,
промисловець, приписувати, відділ кадрів, критичне зауваження,
перейматися, постійні суперечки, несумісні цілі, розділяти функції,
виробляти низку товарів, відділ, конструкторський відділ, частковий збіг,
властива проблема, конкуренція, симулювати децентралізацію, звітувати
комусь, створювати відділи, встановлені трансфертні ціни, позика.
1.  loan
2.  at each successive level
3.  competition
4.  net income
5.  immediate subordinates
6.  profitability
7.  Assistant to the Marketing Manager
8.  Assistant Marketing Manager
9.  inventory
10.  overlap
11.  market share
12.  capital assets
13.  profit margins
14.  credit facilities
15.  retained earnings
16.  determined transfer prices
17.  research and development
spending
18.  hierarchical or pyramidal structure
19.  relational problems
 20.  optional features
21.  sales force
22.  advertising budget
23.  staff position
24.  position holder
25.  cash balance
I26.  industrialist
27.  personnel or human resources
department
28.  criticism
29.  inherent problem
30.  permanent battles
31.  incompatible goals
32.  division/unit/dpartment
33.  engineering department
34.  to manufacture a range of products
35.  to set up/establish divisions
36.  to separate functions
37.  to be concerned with
38.  to be credited with
39.  to simulate decentralization
40.  to push authority and autonomy
down the line/ to keep authority at
lower levels
41.  to argue
42.  to run the risk of
43.  to work at full capacity
44.  to pay off a debt
45.  to report to/to be responsible
to smb

Assignment 2.  Answer the questions:

1.  What kind of organization do you want to work for?
2.  In which department? (e.g. production, finance, accounting, marketing,
sales, human resources)
3.  What will you be responsible for?
4.  Do you think it will later be possible to change departments?
5.  What do you think your first position will be?
6.  Do you expect to have one immediate boss, to work for more than one
superior, or to be part of a team?

Assignment 3.  These are some basic words used in relation to company

organization. Match them up with the definitions on the right.
1.  autonomous a.  a system of authority with different levels, one above the
 other
2.  decentralization b.  a specific activity in a company, e.g.  production,
marketing, finance
3.  function c.  independent, able to take decisions without consulting
a higher authority
4.  hierarchy d.  people working under someone else in a hierarchy
5.  line authority e.  dividing an organization into decision-making units that
are not centrally controlled
6.  report to f.  the power to give instructions to people at the level
below in the chain of command
7.  subordinates g.  to be responsible to someone and to take instructions
from him or her

Assignment 4.  Read the text below, about different ways of organizing companies
and draw the schemes to illustrate the types of company structures:

COMPANY STRUCTURE

Most organizations have a hierarchical or pyramidal structure, with one

person or a group of people at the top, and an increasing number of people below
them at each successive level. There is a clear line or chain of command running
down the pyramid. All the people in the organization know what decisions they are
able to make, who their superior (or boss) is (to whom they report), and who their
immediate subordinates are (to whom they can give instructions).
Some people in an organization have colleagues who help them: for
example, there might be an Assistant to the Marketing Manager. This is known as a
staff position: its holder has no line authority, and is not integrated into the chain of
command, unlike, for example, the Assistant Marketing Manager, who is number
two in the marketing department.
Yet the activities of most companies are too complicated to be organized in a
single hierarchy. Shortly before the first world war, the French industrialist Henry
Fayol organized his coal-mining business according to the functions that it had to
carry out. He is generally credited with inventing functional organization. Today,
most large manufacturing organizations have a functional structure, including
(among others) production, finance, marketing, sales, and personnel or human
resources departments. This means, for example, that the production and marketing
departments cannot take financial decisions without consulting the finance
department.
Functional organization is efficient, but there are two standard criticisms.
Firstly, people are usually more concerned with the success of their department
than that of the company, so there are permanent battles between, for example,
finance and marketing, or marketing and production, which have incompatible
goals. Secondly, separating functions is unlikely to encourage innovation.
Yet for a large organization manufacturing a range of products, having a
single production department is generally inefficient. Consequently, most large
companies are decentralized, following the model of Alfred Sloan, who divided
General Motors into separate operating divisions in 1920. Each division had its
own engineering, production and sales departments, made a different category of
car (but with some overlap, to encourage internal competition), and was expected to
make a profit.
Businesses that cannot be divided into autonomous divisions with their own
markets can simulate decentralization, setting up divisions that deal with each other
using internally determined transfer prices. Many banks, for example, have
established commercial, corporate, private banking, international and investment
divisions.
An inherent problem of hierarchies is that people at lower levels are unable
to make important decisions, but have to pass on responsibility to their boss. One
solution to this is matrix management, in which people report to more than one
superior. For example, a product manager with an idea might be able to deal
directly with managers responsible for a certain market segment and for a
geographical region, as well as the managers responsible for the traditional
functions of finance, sales and production. This is one way of keeping authority at
lower levels, but it is not necessarily a very efficient one. Thomas Peters and
Robert Waterman, in their well-known book In Search of Excellence, insist on the
necessity of pushing authority and autonomy down the line, but they argue that one
element – probably the product – must have priority; four-dimensional matrices are
far too complex.
A further possibility is to have wholly autonomous, temporary groups or
teams that are responsible for an entire project, and are split up as soon as it is
successfully completed. Teams are often not very good for decision-making, and
they run the risk of relational problems, unless they are small and have a lot of self-
discipline. In fact they still require a definite leader, on whom their success
probably depends.

Assignment 5.  The text mentions the often incompatible goals of the finance,
marketing and production (or operations) departments. Classify the following
strategies according to which departments would probably favour them.
1.  a factory working at full capacity
2.  a large advertising budget
3.  a large sales force earning high commission
4.  a standard product without optional features
5.  a strong cash balance
6.  a strong market share for new products
7.  generous credit facilities for customers
8.  high profit margins
9.  large inventories to make sure that products are available
10.  low research and development spending
11.  machines that give the possibility of making various different products
12.  self-financing (using retained earnings rather than borrowing)
Assignment 6.  Match up the definitions with the terms in the previous assignment:
1.  an amount of goods stored ready for sale
2.  collective term for a company’s salespersons
3.  producing as many goods as possible, or doing as much work as possible
4.  profits generated by a company that are not distributed to shareholders as
dividends but are either reinvested in the business or kept as a reserve for
specific objectives (such as to pay off a debt or purchase a capital asset)
5.  the money a company is willing to set aside to accomplish its marketing
objectives
6.  a ratio of profitability calculated as net income divided by revenues, or
net profits divided by sales.  It measures how much out of every dollar of
sales a company actually keeps in earnings.
7.  a type of loan made in a business or corporate finance context.
8.  the percentage of an industry or market’s total sales that is earned by a
particular company over a specified time period.  
9.  the ideal amount of cash that a company wishes to hold in reserve at any
given point in time.

PART 2.  DESCRIBING COMPANY STRUCTURE

Assignment 1.  Read and translate the text.

A normal corporate structure consists of various departments that contribute
to the company’s overall mission and goals. Common departments include
Marketing, Finance, Operations management, Human Resource, and IT. These five
divisions represent the major departments within a publicly traded company,
though there are often smaller departments within autonomous firms. There is
typically a CEO, and Board of Directors composed of the directors of each
department. There are also company presidents, vice presidents, and CFOs. There
is a great diversity in corporate forms as enterprises may range from single
company to multi-corporate conglomerate. The four main corporate structures are
Functional, Divisional, Geographic, and Matrix. Realistically, most corporations
tend to have a “hybrid” structure, which is a combination of different models with
one dominant strategy.
In addition to those models, there are other factors that make up the structure
of an organization. Depending on the chain of command, a company’s structure
could be classified as either vertical or horizontal, as well as centralized or
decentralized. A vertically structured organization or a “tall” company describes a
chain of management, usually with a CEO at the top delegating authority to lower-
level managers through mid-level managers. Horizontal or “flat” companies,
however, have almost no middle-managers, which implies that high-level managers
get involved in daily tasks and interact with customers and front-line personnel. A
centralized organizational structure describes how a company’s direction and
decisions are set by one individual only. Centralization compliments companies
with “tall” structures to create Bureaucratic organizations. Decentralized
organizational structures allow individuals some autonomy at each level of the
business, because they join the decision-making process. Evidently, classifying
organizations as centralized or decentralized is linked to them being “tall” or “flat”.
There is an emerging trend in the way companies shape their organizational
structures. More businesses are moving towards a much flatter, decentralized
organizational structure. Technological developments accelerate these
organizational changes as they improve the efficiency of business, causing it to
restructure departments, modify position requirements, or add and remove jobs.

Assignment 2.  Describe the organizational structure of a company using the

following words and word combinations.
The most common verbs for describing structure are:
consists of
is composed of
contains
is made up of
includes
is divided into

e.g. The company consists of five main departments.

The marketing department is made up of three units.
The sales department is divided into two sections.

Other verbs frequently used to describe company organization include:

to be in charge of
to support or to be supported by
to be accountable to
to be responsible for
to assist or to be assisted by

e.g. The marketing department is in charge of the sales force.

The marketing department is responsible for advertising, sales promotions
and market research.
The five department heads are accountable to the Managing Director.

Assignment 3.  Now write what organisational structure you would use if you
created your own company and why.

PART 3.  COMPETITION AND COMMUNICATION

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
пояснювати факт, підтримувати відкрите спілкування, відставати,
кардинально змінювати, вказувати комусь, промислова зона, розділяти на
групи, зводити стіни, корпоративний дух (етика), результат, жорстко
конкурувати один з одним, закритий, загальний принцип, покращення
іноваційних можливостей, ізольований, внутрішньокерований, реалізовувати
ідеї, конкурентноспроможність, головний виконавчий директор, винести для
себе (виокремити) з історії людства, не мати переваг (бути в невигідному
становищі), вільний потік ідей (людей, інформації).

1.  competitive ability
2.  insulated
3.  corporate ethos
4.  overall principle
5.  Chief Executive Officer (CEO)
6.  free flow of ideas (people,
information)
7.  improvement of innovativeness
8.  micro- managed
9.  secretive
10.  industrial belt
11.  outcome
12.  to extract from human history
13.  to be at a disadvantage
14.  to pursue ideas
15.  to be fiercely competitive with
each other
16.  to fall behind
17.  to erect walls
18.  to break off into groups
19.  to change drastically
20.  to point out to smb
21.  to account for the fact
22.  to maintain open communication

Assignment 2.  Read a short extract from a talk by Professor Jared Diamond called
“How to get rich”, in which, he makes a suggestion concerning the best way to
organize a business. (Jared Diamond is the author of Guns, Germs, and Steel: A
Short History of Everybody for the Last 13,000 Years).

Jared Diamond: I’ve received a lot of correspondence from economists and

business people, who pointed out to me possible parallels between the histories of
entire human societies and histories of smaller groups. This correspondence from
economists and business people has to do with the following big question: what is
the best way to organize human groups and human organizations and businesses so
as to maximize productivity, creativity, innovation, and wealth? Should your
collection of people be organized into a single group, or broken off into a number
of groups, or broken off into a lot of groups? Should you maintain open
communication between your groups, or erect walls between them, with groups
working more secretly?
How can you account for the fact that Microsoft has been so successful
recently, and that IBM, which was formerly successful, fell behind but then
drastically changed its organization over the last four years and improved its
success? How can we explain the different successes of what we call different
industrial belts? When I was a boy growing up in Boston, Route 128, the industrial
belt around Boston, led the industrial world in scientific creativity and imagination.
But Route 128 has fallen behind, and now Silicon Valley is the centre of
innovation. And the relations of businesses to each other in Silicon Valley and
Route 128 are very different, possibly resulting in those different outcomes.
I’ve spent a lot of time talking with people from Silicon Valley and some
from Route 128, and they tell me that the corporate ethos in these two industrial
belts is quite different. Silicon Valley consists of lots of companies that are fiercely
competitive with each other, but nevertheless there’s a lot of collaboration, and
despite the competition there is a free flow of ideas and a free flow of people and a
free flow of information between these companies that compete with each other. In
contrast, I’m told that the businesses of Route 128 are much more secretive, and
insulated from each other.
Or again, what about the contrast between Microsoft and IBM? Microsoft
has lots of units, with free communication between units, and each of those units
may have five to ten people working in them, but the units are not micro-managed,
they are allowed a great deal of freedom in pursuing their own ideas. That unusual
organization at Microsoft, broken up into a lot of semi-independent units competing
within the same company, contrasts with the organization at IBM, which until four
years ago had much more insulated groups. A month ago, I met someone who is on
the board of directors of IBM, and that person told me, what you say about IBM
was quite true until four years ago: IBM did have this secretive organization which
resulted in IBM’s loss of competitive ability, but then IBM acquired a new CEO
who changed things drastically, and IBM now has a more Microsoft-like
organization, and you can see it, I’m told, in the improvement in IBM’s
innovativeness.
So what this suggests is that we can extract from human history a couple of
principles. First, the principle that really isolated groups are at a disadvantage,
because most groups get most of their ideas and innovations from the outside.
Second, I also derive the principle of intermediate fragmentation: you don’t want
excessive unity and you don’t want excessive fragmentation; instead, you want
your human society or business to be broken up into a number of groups which
compete with each other but which also maintain relatively free communication
with each other. And those I see as the overall principles of how to organize a
business and get rich.

Assignment 3.  Match the following to the part-sentences 1-8 given below:

A.  Route 128 (the industrial belt around Boston, Massachusetts)
 B.  Silicon Valley (the high-tech companies in the area between San
Francisco and  San Jose, California)
C.  IBM
D.  Microsoft

1.  has lots of companies that are secretive, and don’t communicate or

collaborate with each other
2.  has lots of companies that compete with each other but communicate
ideas and information
3.  has always had lots of semi-independent units competing within the same
company, while communicating with each other
4.  is organized in an unusual but very effective way
5.  is currently the centre of innovation
6.  used to have insulated groups that did not communicate with each other
7.  used to lead the industrial world in scientific creativity and imagination
8.  was very successful, then less successful, and is now innovative again
because it changed the way it was organized

Assignment 4.  Match up the words on the left with the definitions on the right:
1.  industrial belt A.  a company’s ways of working and
thinking
2.  wealth B.  alone, placed in a position away from
others
3.  productivity C.  an area with lots of industrial companies,
around
the edge of a city
4.  corporate ethos D.  breaking something up into pieces
5.  colaboration E.  the amount of output produced (in a
certain
period, using a certain number of inputs
6.  insulated or isolated F.  the products of economic activity
7.  fragmentation G.  working together and sharing ideas

Assignment 5.  Working in pairs, rearrange the following part-sentences to make

up a short paragraph summarizing Diamond’s ideas about the best form of business
organization.

a.  and regularly engage staff who have worked for your competitors,
b.  are at a disadvantage,
c.  because most groups of people get
d.  but also communicate with each other quite freely,
e.  creativity, innovation, and wealth,
f .  into a number of groups which compete
g.  Isolated companies or groups
h.  most of their ideas and innovations from the outside,
 i.  So in order to maximize productivity,
j.  You should also exchange ideas and information with other companies,
k.  you should break up your business

PART 4.  BIG AND SMALL COMPANIES

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
приватне підприємство, корпорація, товариство, управління у справах
малого бізнеса, особисті заощадження, корпоративна облігація, бути
відповідальним за борги компанії, загальний об’єм продажів, ринкова ніша,
податок на прибуток, акції компанії, збільшити продажі, механізми
фінансування, звітна документація для Комісії з цінних паперів і бірж,
загальні річні надходження, відповідальність за надання звітності, розпочати
новий проект, виходити на нові ринки, добре налагоджений бізнес, Комісія з
цінних паперів і бірж.
1.  personal savings
2.  financing arrangements
3.  income tax
4.  total sales
5.  market niche
6.  Small Business Administration
(SBA)
7.  corporate bond
8.  total annual receipts
9.  shares of stock
10.  sole proprietorship
11.  partnership
12.  corporation
13.  reporting responsibilities
14.  the Securities and Exchange
Commission (SEC)
15.  SEC filings
16.  well-established business
17.  to increase sales
18.  to launch a new project
19.  to branch out into new markets
20.  to be liable for business debts

Assignment 2.  Read and translate the text. Answer the following questions:
1.  What are the main differences between a big business and a small
business?
2.  By what criteria is a business’s size measured?
3.  What does a business’s legal structure determine?
 4.  Is there any legal distinction between sole proprietorships or partnerships
and corporations?
5.  Where do small and big companies receive financing from?
6.  What does a company usually do when it grows?

THE DIFFERENCE BETWEEN BIG BUSINESSES AND

SMALL BUSINESSES

Creating a successful new business is a tough job, especially when a new

company has to compete against large, well-established businesses. While small
businesses and large businesses might operate in the same market, they have
significant differences that can have a large effect on business operations. Small
businesses not only differ in size from larger ones, but tend to have different legal
structures, financing arrangements and market niches.

Business Size Basics

A business’s size can be measured by the number of employees that work for
it or by total sales within a defined period, but no specific line exists that separates
a big business from a small business. However, the U.S. Small Business
Administration, for its purposes, does not consider a business with more than 500
employees or $7 million in total annual receipts to be a small business.

Business Legal Structure

A business’s legal structure determines how the business is managed, taxed
and whether owners are liable for business debts. Many small companies start as
sole proprietorships or partnerships, which give a sole owner or a group of owners
complete control over a company. Owners of sole proprietorships and partnerships
pay income taxes for business profit. They are also legally liable for business debts.
Large companies are often organized as corporations that pay taxes
separately from the owners. Large corporations have reporting responsibilities,
such as SEC filings, that most small businesses do not. Owners of corporations are
shareholders who vote to appoint executive board members but do not directly
manage the business.

Financing of Small and Large Businesses

Financing describes how a business raises money to fund operations and new
projects. New small businesses typically receive financing from the personal
savings of owners, small business loans from banks, and gifts or loans from friends
and family members. Well-established small businesses and medium-sized
companies might be able to attract financing from outside investors and money
from venture capital firms. More recently, some firms have turned to online
funding campaigns at sites like Kickstarter in order to launch a new project or an
entire business. Large corporations can raise money by selling shares of stock to the
public and by selling corporate bonds.
Differences in Market Niche
Another difference between small businesses and large companies is that
small companies often focus on a niche market, while larger companies tend to
offer more products and services to a wider variety of consumers. A small company
with only a few employees might be able to make enough money to survive by
selling a single product or service in a very specific market. As companies grow,
they tend to branch out into new markets and offer new products and services to
increase sales and hire more employees.
by Gregory Hamel

Assignment 3.  Do you, or would you, prefer to work for a big or a small company
or organization? Why? What are the advantages of each?
Read the following statements, and decide whether they are about the advantages of
working in a big or small company.

1.  If you have problems with your colleagues you can always change
departments.
2.  The atmosphere is friendlier and you know everyone.
3.  You are often responsible for a variety of different tasks.
4.  You can actually see the result of your contribution to the company.
5.  You can be proud of working for a company with a national or
international reputation.
6.  You can become more specialized in your work.
7.  You can deal with problems face-to-face.
8.  You have a better possibility of realizing your potential.
9.  You have more independence, and you don’t always have to wait for
permission from a superior.
10.  You may be able to go and work in a foreign subsidiary.
11.  You often get greater freedom, flexibility and openness to change.
12.  You’ll probably get a slightly higher salary.
13.  You’re unlikely to be fired in a sudden reorganization or downsizing.
14.  Your company will be in a better position in an economic downturn or
recession.

Assignment 4. Explain the meaning of the following words and word

combinations:
1.  functional structure
2.  line structure
3.  matrix structure
4.  staff position
5.  immediate subordinates
6.  Assistant to the Marketing Manager
7.  Assistant Marketing Manager
8.  permanent battles
9.  incompatible goal
10.  overlap
11.  determined transfer prices
12.  to simulate decentralization
13.  relational problems
 UNIT 5
COMPANY LAW

TYPES OF BUSINESS

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
приватне підприємство, починати бізнес, товариство, вносити рівну
частку капіталу, нести збитки, ділити прибуток, товариство з необмеженою
відповідальністю, юридична особа, особистий статок, товариство з
обмеженою відповідальністю, бути відповідальним за щось, збанкрутувати,
активи, каталог цінних паперів, готова компанія «під ключ», відкрите
акціонерне товариство, запропонувати акції на продаж на відкритому
фондовому ринку, покривати борги, закрите акціонерне товариство,
громадськість, компанія, яка займається вкладенням венчурного капіталу,
залучати капітал, бути проданим (ліквідованим), тобто, звертатися, фондова
біржа, Комісія з цінних паперів і бірж, установчий договір, приміщення,
статутний капітал, випускати акції, статут компанії, визначати права і
обов’язки, реєстр компаній, юридична відмінність, подавати фінансовий звіт.
1.  individual proprietorship / sole
trader
2.  partnership
3.  partnership with unlimited liability
4.  limited company/corporation
5.  private limited company
6.  public limited company
7.  authorized share capital
8.  premises
9.  id est
10.  assets
11.  legal entity
12.  venture capital institution
13.  personal fortune
14.  the public
15.  the Stock Exchange
16.  prospectus
17.  the Securities and Exchange
Commission
18.  Memorandum of Association/
Certificate of Incorporation
19.  Articles of Association / Bylaws
 20.  ready-made “off-the-shelf” company
21.  registrar of companies
22.  legal distinction
23.  to file a financial statement
24.  to issue shares
25.  to offer shares for sale on the open
stock market
26.  to raise capital from
27.  to go bankrupt
28.  to cover the debts
29.  to set out rights and duties
30.  to be sold (liquidated)
31.  to be liable for
32.  to share / to bear / to incur losses
33.  to share profits
34.  to contribute equal capital
35.  to apply
36.  to go into business

Assignment 2.  Complete the text using the words from the list below:
bankruptcy financial creditors issue liability
corporations partnership registered shares sole trader
losses premises capital prospectus files

TYPES OF BUSINESS

The simplest form of business is the individual proprietorship or

(1) __________: for example, a shop (US = store) or a taxi owned by a single
person. If several individuals wish to go into business together they can form a
(2) __________; partners generally contribute equal capital, have equal authority in
management, and share profits or (3) __________. In many countries, lawyers,
doctors and accountants are not allowed to form companies, but only partnerships
with unlimited (4) __________ for debts – which should make them act
responsibly.
But a partnership is not a legal entity separate from its owners; like sole
traders, partners have unlimited liability: in the case of (5) __________, a partner
with a personal fortune can lose it all. Consequently, the majority of businesses are
limited companies (US = (6) __________), in which investors are only liable for
the amount of capital they have invested. If a limited company goes bankrupt, its
assets are sold (liquidated) to pay the debts; if the assets do not cover the debts,
they remain unpaid (i.e. (7) __________ do not get their money back.)
In Britain, most smaller enterprises are private limited companies which
cannot offer (8) __________ to the public; their owners can only raise capital from
friends or from banks and other venture capital institutions. A successful, growing
British business can apply to the Stock Exchange to become a public limited
company; if accepted, it can publish a (9) __________ and offer its shares for sale
on the open stock market. In America, there is no legal distinction between private
and public limited corporations, but the equivalent of a public limited company is
one (10) __________ by the Securities and Exchange Commission.

FOUNDING A COMPANY

Founders of companies have to write a Memorandum of Association (in the

US, a Certificate of Incorporation), which states the company’s name, purpose,
registered office or premises and authorized share (11) __________.
(12) __________ (always with an “s” at the end) – is the technical term for
the place in which a company does its business: an office, a shop, a workshop, a
factory, a warehouse, etc. Authorised share capital means the maximum amount of
a particular type of share the company can (13) __________.
Founders also write Articles of Association (US = Bylaws), which set out the
rights and duties of directors and different classes of shareholders. Companies’
memoranda and articles of association, and annual (14) __________ statements are
sent to the registrar of companies, where they may be inspected by the public. (A
company that (15) __________ its financial statements late is almost certainly in
trouble.) In Britain, founders can buy a ready-made “off-the-shelf” company from
an agent, that is, a company formed and held specifically for later resale; the buyer
then changes the name, memorandum, and so on.

Assignment 3.  Answer the questions:

1.  What is the simplest form of business?
2.  What rights and duties do partners in a partnership usually have?
3.  What risks can partners in a partnership run in the case of bankruptcy?
4.  What happens if a limited company goes bankrupt?
5.  Where do private limited companies raise their capital from?
6.  How can a successful, growing British business become a public limited
company?
7.  Is there any legal distinction between private and public limited
corporations in America?
8.  What do founders of companies have to write?
9.  What service is provided in Great Britain for those who want to found
a company?

Assignment 4.  Match the following terms to the definitions given below:

partnership, unlimited liability, proprietorship (sole trader), limited
company

1.  an unincorporated business with one owner who pays personal income tax
on profits from the business.
 2.  a type of unincorporated business organization in which multiple
individuals, called general partners, manage the business and are equally
liable for its debts.
3.  the responsibility of one or more owners of a business for the total
amount of debt and other liabilities that the business accrues, regardless
of how much the owner(s) have personally invested.
4.  a type of business ownership combining several features of corporation
and partnership structures.

Now read the texts and check whether you have chosen the right answer.
Make a list of advantages and disadvantages of these types of business:

A sole proprietorship, also known as the sole trader or simply a

proprietorship, is a type of business entity that is owned and run by one individual
and in which there is no legal distinction between the owner and the business. The
owner receives all profits (subject to taxation specific to the business) and has
unlimited responsibility for all losses and debts. Every asset of the business is
owned by the proprietor and all debts of the business are the proprietor’s. This
means that the owner has no less liability than if they were acting as an individual
instead of as a business. A sole proprietor may use a trade name or business name
other than his or her legal name.
The benefit of the sole proprietorship is the tax advantage. The disadvantage
of a sole proprietorship is obtaining capital funding, specifically through
established channels, such as equity (selling shares) and obtaining bank loans or
lines of credit. As a business grows it often transitions to a limited liability
company (LLC) or corporation.

A partnership is a type of unincorporated business organization in which

multiple individuals, called general partners, manage the business and are equally
liable for its debts; other individuals called limited partners may invest but not be
directly involved in management and are liable only to the extent of their
investments. Unlike a Limited Liability Company or a corporation, in a partnership
each partner shares equal responsibility for the company’s profits and losses, and
its debts and liabilities. The partnership itself does not pay income taxes, but each
partner has to report their share of business profits or losses on their individual tax
return. Estimated tax payments are also necessary for each of the partners for the
year in progress.

An unlimited liability is a type of business where owners share joint

responsibility for the entire amount of debt and other liabilities amassed by the
business. Unlimited liability exists regardless of the amount of investment each
owner has personally made. If the business is unable to meet any financial
obligations or settle any outstanding liabilities, the owner’s personal assets can be
seized to satisfy the debts. This is in contrast to a limited liability structure where
owners’ losses cannot exceed the total amount invested in the business. Unlimited
liability is found in general partnerships and sole proprietorships.

A limited liability company (LLC) is a popular business structure because,

similar to a corporation, owners have limited personal liability for the debts and
actions of the LLC. Other features of LLCs are more like a partnership, providing
management flexibility and the benefit of pass-through taxation. Owners of an LLC
are called members. Since most states do not restrict ownership, members may
include individuals, corporations, other LLCs and foreign entities. There is no
maximum number of members. Most states also permit “single member” LLCs,
those having only one owner. A few types of businesses generally cannot be LLCs,
such as banks and insurance companies.

Assignment 5.  Translate the sentences using the Active vocabulary.

1.  Компанія має подавати щорічні фінансові звіти до реєстру компаній,
щоб у неї не виникло ніяких проблем.
2.  Якщо компанія збанкрутіла, її активи продаються, щоб погасити
борги.
3.  В підприємстві з обмеженою відповідальністю, підприємець
відповідає тільки за ту частину капіталу, яку він інвестував.
4.  Нацбанк України має негайно погасити свої борги перед великими
приватними компаніями.
5.  Колегія юристів стверджує, що між цими договорами немає вагомої
юридичної відмінності.
6.  Партнери вклали однакові обсяги капіталу, тому претендують на
однаковий прибуток.
7.  Ніхто крім вас не оплатить борги у разі банкрутства фірми.
8.  Останнім часом «компанії під ключ» стали хорошим варіантом для
початку свого бізнесу.
9.  Відкрита фондова біржа дозволяє її учасникам мати доступ до
інформації про усі акції, що є в продажу.
MIXED BAG
Assignment 1.  Translate the sentences using the active vocabulary
1.  Обробна промисловість – дуже важлива складова економіки Китаю,
обсяги виготовленої продукції зростають з кожним роком.
2.  Швидкий розвиток та зростання агрохолдингів в Україні означає, що
все більше людей заробляють на життя в агропромисловому
комплексі.
3.  Якщо ви збираєтесь відкрити інтернет магазин, вам потрібно
забезпечити стабільні поставки товарів.
4.  Зростання кількості безробітних в країні свідчить про проблеми з
економікою.
5.  Важка промисловість є основою української економіки.
6.  На складі зберігалася величезна кількість різноманітних товарів,
призначених для продажу в супермаркеті.
7.  Вибух на Чорнобильській електростанції став величезною трагедією
для українського народу, залишивши по собі жахливі наслідки.
8.  Розробка нових технологій потребує колосальних зусиль та
фінансування.
9.  В час пік в метро жахлива штовханина, адже всі люди поспішають
на роботу.
10.  Рада директорів призначає та слідкує за роботою топ менеджерів,
від дій яких залежить майбутнє компанії.
11.  Однією з основних задач будь-якого менеджера є правильне
встановлення цілей компанії, тобто напрямку, в якому вона буде
рухатися.
12.  Він займає високу посаду у компанії, і тому у нього велика
кількість підлеглих. Він несе відповідальність за якість їхньої
роботи.
13.  За блискуче виконану роботу, що призвела до збільшення продажів,
його було підвищено до начальника відділу.
14.  Рівень цін на акції цієї компанії неухильно спадатиме, що
спричинено невдалими діями топ менеджера.
15.  Ринок послуг змінюється в залежності від зростаючих потреб
людства.
16.  Чим складніший продукт, тим вищі витрати на робочу силу для
його виготовлення.
17.  Нажаль, сьогодні в Україні виготовляються тільки
низькотехнологічні продукти.
18.  Я дуже сумніваюся, що ця компанія вибереться з фінансових
труднощів. Ситуація вже давно вийшла з-під контролю.
19.  Безперечно, він добився успіху в житті. Його підприємство
процвітає, в нього чудова сім’я та надійні друзі.
20.  Якщо ви не сплатите борги до кінця місяця, все ваше майно буде
конфісковано та продано на аукціоні.
21.  Товариство з обмеженою відповідальністю – найбільш
розповсюджена форма юридичної реєстрації підприємства.
22.  Через невдало обрану стратегію продажу товарів компанія ледь не
збанкрутіла.
23.  До активів компанії належать багато патентів, інноваційних
розробок та високотехнологічне обладнання.
24.  Щоденне управління великим магазином – справа нелегка, і вона
під силу тільки деяким людям.
25.  Якщо до робітників не ставитимуться з повагою, вони не будуть
достатньо змотивовані робити свою роботу добре.
26.  Майк – мій безпосередній керівник. Зважаючи на нещодавні події,
можна зробити висновок що він талановитий менеджер.
27.  Товар, який ми виготовляємо, – лідер на ринку, він випереджує
конкурентів по всім показникам.
28.  Щорічна фінансова звітність, згідно з діючим законодавством, є
обов’язковою для всіх підприємств.
29.  Дев’ятнадцяте століття добре відоме своїм проривом в області
науки та техніки; багато нових виробів було винайдено для
служіння людству.
30.  Випуск нового сенсорного телефона під назвою IPhone у 2007 році
приніс компанії Apple рекордний прибуток на ринку IT технологій.
31.  Для того, щоб бути конкурентоспроможним на ринку робочої сили,
кожен студент, котрий щойно закінчив університет, має бути
наполегливим, готовим працювати по 24 години на добу та бути
висококваліфікованим.
32.  На сьогоднішній день корпорація Microsoft є лідером у написанні
програмного забезпечення.
33.  У кожній компанії мають бути стажери, яких потрібно тренувати як
наступне покоління робітників, які б підтримували засади та
принципи компанії.
34.  Мережа захисту – це спеціальна схема, котра виключає можливість
здійснення помилок на будь-якому рівні управління.
35.  Природжені менеджери мають вирізнятися від звичайного
робітника деякими професіональними рисами, такими як
схильність до «відповідальних» інновацій та можливістю
прогнозувати ризики.
36.  Боксит – це алюмінієва руда, яка на сьогодні вважається основним
джерелом алюмінію.
 UNIT 6
LABOUR RELATIONS

PART 1. LABOUR UNIONS

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
забезпечувати справедливу зарплатню, лібералізувати ринки,
прийнятна тривалість робочого дня, виконувати функцію, безпечні умови
праці, ремесло (професія), ставитися як до ворога, налагоджена система
зв’язку, робітники фізичної праці і сфери послуг, галузь промисловості,
консультувати когось з питань чогось, економічно невиправдане робоче
місце, некваліфікована праця, обмеження (стримання), дотримуватись правил,
випадкова (тимчасова) робота (підробіток), лежати в основі чогось, робота з
неповним робочим днем, працівники, які не є членами профспілок,
розсудливий (далекоглядний) уряд, державний сектор, вести переговори з
кимось, представляти та формулювати потреби працівників, система
штрафних санкцій, рівень продуктивності, на шпальтах, голос, який виражає
інтереси когось, бути дещо застарілим, економічна роль.
1.  public sector
2.  unskilled job
3.  part-time job
4.  communications are good
5.  casual job
6.  restraint
7.  industry
8.  non-unionized workers
9.  sensible government
10.  penalty-point system
11.  the rate of production
12.  voice for the interests of smb
13.  manual and service industry
workers
14.  reasonable working hours
15.  trade
16.  safe working conditions
 17.  uneconomic job
18.  in the headlines
19.  to lie at the heart of smth
20.  economic role
21.  to deregulate markets
22.  to treat smb as an adversary
23.  to obey rules (regulations)
24.  to negotiate with smb
25.  to consult on
26.  to serve a function
27.  to represent and articulate the
needs of the employees
28.  to ensure fair wages
29.  to be somewhat out of date

Assignment 2.  Answer the following questions:

1.  What are labour unions or trade unions?
2.  What do they do?
3.  What can they do when dissatisfied?
4.  Who can the government negotiate with if the workers are non-unionized?

Assignment 3.  Match up the words with the definitions given below.

1.  collective bargaining
2.  strike
3.  a go-slow (GB) or slowdown (US)
4.  working-to-rule
5.  industrial action
6.  to picket

A.  a general term for strikes, go-slows, work-to-rules, and so on

B.  a deliberate reduction in the rate of production, as a protest
C.  a stoppage of work, as a protest against working conditions, low pay, and
so on
D.  negotiations between unions and employers about their members’ wages
and  working conditions
E.  to protest outside a factory or other workplace, and try to persuade
workers and  delivery drivers not to enter
F.  deliberately obeying every regulation in an organization, which severely
disrupts  normal operations

Assignment 4.  Read the interview with Denis MacShane, a British Member of

Parliament for the Labour Party who previously worked for ten years for the
International Metal Workers Union, talking about trade unions.
 Interviewer Denis MacShane, what would you say are the functions of trade
unions, or labour unions?
Denis MacShane Work is changing all the time, but at the heart of work lies
the worker, and as firms get bigger they require many workers, they have to be
managed, and unions are a necessary voice for the interests of those workers. It is
curious to see that in the new countries that have been in the headlines in recent
years, countries like South Korea, or Poland, or South Africa, trade unions have
played an enormous dynamic political and economic role. Clearly some of the old
attitudes and structures of trade unions in Europe or the United States have become
somewhat out of date and they have to be reinvented, but in the end, as long as
employees have needs that need to be represented, then I think they’ll need trade
unions, and a sensible government, and sensible employers, that want effective
social peace, and want also a team-working and dynamic economy, should be
encouraging trade unions. The form of trade unions is changing, perhaps the old
class war attitude of trade unions is out of date, but again it is interesting to see that
some of the most successful economies – I’m thinking of Germany, I’m thinking of
Japan – there is a strong trade union presence, it’s recognized by employers, it is
accepted as a partner by government.

Assignment 5.  Now answer the questions.

1.  What does MacShane say about the role or function of unions?
2.  What attitude governments and companies should have in relation to
unions?
3.  What do you think MacShane means by the out-of-date class war attitude
of some unions?
4.  Do you agree with MacShane’s view of the necessity and usefulness of
unions?

PART 2.  INDUSTRIAL RELATIONS

Assignment 1.  Answer the following questions:

1.  Are labour relations good or bad in our country? Why?
2.  Do you consider that the unions are too strong or not strong enough in
our country?

Assignment 2.  Read the text and then answer the following questions. According
to the text:
1.  What are frequent causes of bad labour relations?
2.  What have the consequences of labour-market deregulation been?
3.  Why can these consequences be a problem for management?

WHO NEEDS UNIONS?

Manual and service industry workers are often organized in labour unions,
which attempt to ensure fair wages, reasonable working hours and safe working
conditions for their members. British unions are known as trade unions because, as
in Germany, they are largely organized according to trade or skill: there is an
engineers’ union, an electricians’; union, a train-drivers’ union, and so on. In other
countries, including France and Italy, unions are largely political: workers in
different industries join unions with a particular political position.
Industrial relations tend to be better in countries, industries and companies
where communications are good, i.e. where management consults workers on
matters that will concern them, where neither side treats the other as an adversary,
and when unions do not insist upon the preservation of completely uneconomic
jobs and working practices. Although some employers and managers (and political
parties) oppose the very existence of unions – even though, like doctors, lawyers,
accountants, and so on, they might themselves belong to a professional association
with similar basic aims – many management theorists stress the necessity of unions.
In the 1970s, Peter Drucker wrote that “Management is and has to be a power. Any
power needs restraint and control – or else it becomes tyranny. The union serves an
essential function in industrial society.”* Yet one of the chief objectives of right-
wing governments in the 1980s (e.g. in Britain and the USA) was to diminish the
power of trade unions, and to deregulate labour markets in accordance with the
ideal of free markets.
As a result of deregulation, working conditions in many industries in many
countries have worsened, leading to the creation of a great many casual, part-time,
unskilled jobs done by non-unionized workers. France, for example, has the lowest
number of workers in trade unions in the industrialized world. The unions now
represent less than 10 % of the French work force, and most of those are in the
public sector. The vast majority of French workers seem to have rejected the
confrontational politics of the main unions, notably the communist-controlled CGT.
Consequently, when the largely non-unionized French lorry drivers blocked all the
motorways in the 1990s, striking over the introduction of a new driver’s licence
with a penalty-point system (and over their working conditions in general), the
French government found no one to negotiate with.
In fact, a number of politicians and business leaders are beginning to regret
the weakness of unions. Some managers, including Antoine Riboud, the former
head of the huge Danone food conglomerate, actively encourage unionization
because they insist that a big company needs someone to represent and articulate
the needs of the employees and act as a social partner to the employer. But there is
clearly a problem if workers believe that the unions are incapable of doing this, and
choose not to join them.

*Peter Drucker: An Introductory View of Management

Assignment 3.  Find the words in the text which mean the following.
1.  people who work with their hands
2.  a union for workers with a particular type of job
3.  to ask someone’s opinion before making a decision
4.  an opponent or enemy
 5.  too expensive, wasteful, loss-making
6.  unlimited and unfairly used power
7.  ending or relaxing restrictive laws
8.  areas of the economy run by the local or national government
9.  hostile, almost aggressive, seeking conflicts
10.  a large corporation, made up of a group of companies

Assignment 4.  Answer the following questions:

1.  Peter Drucker says “Management is and has to be a power.” What does
this mean?
2.  In your opinion, should unions be consulted before management makes
decisions about the following?
a)  manufacturing new products or offering new services
b)  opening new factories, shops, and so on
c)  closing existing factories, shops, and so on
d)  changing working hours
e)  hiring new staff
3.  Should unions be represented on a company’s board of directors, as
happens in some countries?

Assignment 5.  Explain the meaning of the following words and word

combinations:
1.  manual workers
2.  service industry workers
3.  to ensure fare wages
4.  reasonable working hours
5.  industrial relations
6.  uneconomic job
7.  casual job
8.  part-time job
9.  unskilled job
10.  non-unionized workers
11.  the public sector
12.  penalty-point system
13.  to represent and articulate the needs of the employees

Assignment 6.  Translate the sentences into Ukrainian paying special attention to

the words given in bold:
1.  “White collar” is a working class that is known for earning high average
salaries and not performing manual labour at their jobs.
2.  Since 1989, large companies in the United States have been required to let
employees know 60 days in advance if there is going to be a massive
layoff.  
3.  The global recession of 2008-2009 brought a great amount of attention to
the risky investment strategies used by many large financial institutions.
 4.  In the United States, collective bargaining takes place between labour
union leaders and the management of the company that employs that
union’s workers.
5.  A go-slow may be used as either a prelude or an alternative to a strike, as
it is seen as less disruptive as well as less risky and costly for workers and
their union.
6.  Collective bargaining consists of the process of negotiation between
representatives of a union and employers in respect of the terms and
conditions of employment of employees, such as wages, hours of work,
working conditions, grievance-procedures, and about the rights and
responsibilities of trade unions.
7.  If there’s no smoking on the premises of a high school, you can’t even
light up in the parking lot.
8.  An individual that is working part-time at an office job instead of full-
time is considered underemployed because they are willing to provide
more employment, which can increase the overall output.  
9.  Casual employees are usually employed by the hour or by the day. They
usually don’t get paid sick leave or annual leave. To make up for this
they get extra pay called a casual loading.
10.  A segment of the work force associated with a low skill level or a
limited economic value for the work performed is unskilled labor.
Unskilled labor is generally characterized by low education levels and
small wages. Work that requires no specific education or experience is
often available to workers who fall into the unskilled labor force.
11.  Employers and workers seem to approach employment from vastly
different perspectives. So how can the two sides reach any sort of
agreement? The answer lies in unions. Unions have played a role in the
worker-employer dialogue for centuries, but in the last few decades many
aspects of the business environment have changed. With this in mind, it’s
important to understand how unions fit into the current business
environment, and what role unions play in the modern economy.

Assignment 7.  Read about the types of unions:

TYPES OF TRADE UNIONS

General Union
General unions generally represent labourers from all industries and
professions irrespective of what sector of the workforce they form part. In other
words, these unions stand for skilled and unskilled workers performing different
jobs in different industries (cleaners, clerical staff, and transport workers etc.).
They are usually the largest and most powerful unions.
Craft Union
 These are fairly small unions for skilled workers, performing the same or
similar work in different industries such as motor mechanics, plumbing or electrical
work. Their power is based upon the scarcity of highly skilled labour.
Membership of craft union is usually restricted to those who have completed
the recognized qualification for the craft or skill in question, normally an
apprenticeship. Being a closed union, craft union may be relatively small.
Industrial Union
Industrial unionism is a type of labour organization. It is one which, for
organizational purposes, includes all workers in a particular industry (egg, steel,
automobile, and textile) regardless of whether they are skilled or unskilled. The
union’s bargaining power is based upon the number of members.
Industrial unions also depend on changes in the economy. Some industrial
unions in areas such as sugar, oil and dock work has suffered significantly as a
result of technological changes.
As industrial unions recruit members within one industry only and which
aspires to recruit all grades of workers in that industry, both manual and non-
manual. It can therefore be considered as a form of vertical unionism.
White Collar Union
It is a union that embodies principally white-collar workers; a non-manual
workers’ union which executes similar tasks in different industries (e.g. teachers,
scientists). They stand for professionals who work from an office such as those who
occupy a managerial or administrative chair.
Horizontal Union
Unions that recruit workers in similar occupational categories in whatever
industrial sector they appear are called horizontal unions; they may be
distinguished from industrial or vertical unions. 
Occupational Union
It organizes workers in a specific occupation or group of occupations which
are closed to others. Most are in the white-collar area covering groups such as
clerical and secretarial staff, local government officers etc. The term may also
relate to manual craft unions.
Open Union
It is a union with few restrictions as to which sorts of workers may join. The
big general unions are of this character, especially those unions that started off as
manual unions and then developed a section for white-collar workers. In the 1980s,
several formerly closed unions have opened themselves up to new categories of
membership in an effort to recruit new members.
Student Union
The Student Union is run by and for the students. It works in the interest of
students and regularly organizes various activities. All students are members, the
membership fee being included in the registration. Students are very dynamic in
organizing extra-curricular activities supported by the Public Relations Office.

Assignment 8.  Translate the sentences into Ukrainian:

 1.  Trade Unionism grew as one of the most powerful socio-economic
political institutions of our time – to fill in the vacuum created by
industrial revolution in industrial society.
2.  Trade union is an association either of employees or employers or of
independent workers.
3.  Members can share their feelings, exchange notes and fight the employer
quite effectively whenever he goes off the track.
4.  The subject which drew the major attention of the trade unions is wages
and salaries.
5.  Workers who are non-unionised are more at risk of low pay.
6.  In theory unions might exercise their collective bargaining power to
partially offset the purchasing power of an employer in a particular
occupation and in doing so achieve a mark-up on wages compared to
those on offer to non-union members.
7.  Collective bargaining is a process between employers and employees to
reach an agreement regarding the rights and duties of people at work.
8.  Collective bargaining includes not only negotiations between the
employers and unions but also includes the process of resolving labor-
management conflicts.

Assignment 9.  Translate the text into English using the Active vocabulary.
Професійні спілки є традиційним для більшості країн світу об’єднанням
працівників, що забезпечує захист їхніх інтересів. Метою діяльності
профспілок є вираження інтересів і захист прав організацій, координація їхніх
колективних дій, представництво та захист трудових, соціально-економічних
прав та інтересів членів профспілок в органах державної влади та органах
місцевого самоврядування, у відносинах з роботодавцями, їх організаціями та
об’єднаннями, а також з іншими об’єднаннями громадян. 
Профспілки мають право на організацію й ведення колективних
переговорів, а також укладення колективних договорів та угод.
Основною функцією профспілок є представництво і захист трудових,
соціально-економічних прав та інтересів найманих працівників. Захисна
функція профспілок передбачає виконання таких важливих завдань, як
відстоювання рівня оплати праці не нижче прожиткового мінімуму,
відстоювання своєчасної виплати заробітної плати, відстоювання режимів
праці та відпочинку, створення належних умов і забезпечення охорони праці,
відстоювання гарантій зайнятості, захист прав працівників, які підлягають
звільненню внаслідок реструктуризації або банкрутства підприємства та ін.
Усього в Україні зареєстровано 143 всеукраїнські професійні спілки та
16 всеукраїнських об’єднань профспілок. Існують також обласні, регіональні
профспілки та об’єднання профспілок обласного, регіонального статусу, а
також місцеві профспілки та об’єднання профспілок місцевого статусу.
Найчисельнішими серед всеукраїнських профспілок є профспілки
агропромислового комплексу та профспілки працівників освіти і науки,
членами яких є студентська та учнівська молодь, а також непрацюючі
пенсіонери, які не припинили свого членства в профспілках після завершення
трудової діяльності.

Assignment 10.  Read and discuss the text about unions:

Unions are organizations that negotiate with corporations, businesses and
other organizations on behalf of union members. There are trade unions, which
represent workers who do a particular type of job, and industrial unions, which
represent workers in a particular industry.

Since the Industrial Revolution, unions have often been credited with
securing improvements in working conditions and wages. Many unions were
formed in manufacturing and resource companies, companies operating in steel
mills, textile factories and mines. Over time, however, unions have spread into
other industries. Unions are often associated with the “old economy”: companies
that operate in heavily regulated environments. Today, a large portion of
membership is found in transportation, utilities and government.
The number of union members and the depth at which unions penetrate the
economy varies from country to country. Some governments aggressively block or
regulate a union’s formation and others have focused their economies in industries
where unions have not traditionally participated.

Industry deregulation, increased competition and labor mobility have made it

more difficult for traditional unions to operate. In recent decades, unions have
experienced limited growth due to a shift from “old economy” industries, which
often involved manufacturing and large companies, to smaller and medium-sized
companies outside of manufacturing. In the recent past, potential union members
have spread into a larger set of companies. This makes collective bargaining a more
complicated task, as union leaders must work with a larger set of managers and
often have a harder time organizing employees.

The evolution of the modern worker has also changed the role of unions. The
traditional focus of union leaders has been representing workers when negotiating
with managers, but when developed economies shift away from a reliance on
manufacturing, the line between manager and worker becomes blurred. In addition,
automation, computers and increased worker productivity results in fewer workers
being needed to do the same job.

The power of labor unions rests in their two main tools of influence:
restricting labor supply and increasing labor demand. Some economists compare
them to  cartels. Through collective bargaining, unions negotiate the wages that
employers will pay. Unions ask for a higher wage than the equilibrium wage (found
at the intersect of the labor supply and labor demand curves), but this can lower the
hours demanded by employers. Since a higher wage rate equates to less work per
dollar, unions often face problems when negotiating higher wages and instead will
often focus on increasing the demand for labor. Unions can use several different
techniques to increase the demand for labor, and thus, wages. Unions can, and do,
use the following techniques:

 Push for minimum wage increases. Minimum wage increases

the labor costs for employers using low-skilled workers. This
decreases the gap between the wage rate of low-skilled and
high-skilled workers; high-skilled workers are more likely to be
represented by a union. Increase the marginal productivity of its
workers. This is often done through training. 
 Support restrictions on imported goods through quotas and
tariffs. This increases demand for domestic production and,
therefore, domestic labor.
 Lobbying for stricter immigration rules. This limits growth in
the labor supply, especially of low-skilled workers from abroad.
Similar to the effect of increases in the minimum wage, a
limitation in the supply of low-skilled workers pushes up their
wages. This makes high-skilled laborers more attractive.

Unions have a unique legal position and in some sense, they operate like
a monopoly as they are immune to antitrust laws. Because unions control, or can
exert a good deal of influence on, the labor supply for a particular company or
industry, unions can restrict non-union workers from depressing the wage rate.
They are able to do this because legal guidelines provide a certain level of
protection to union activities.

When unions want to increase union member wages or request

other concessions from employers, they can do so through collective bargaining.
Collective bargaining is a process in which workers (through a union) and
employers meet to discuss the employment environment. Unions will present their
argument for a particular issue, and employers must decide whether to concede to
the workers’ demands or to present counterarguments. The term “bargaining” may
be misleading, as it brings to mind two people haggling at a flea market. In reality,
the goal of the union in collective bargaining is to improve the status of the worker
while still keeping the employer in business. The bargaining relationship is
continuous, rather than just a one-time affair.

If unions are unable to negotiate, or are not satisfied with the outcomes of
collective bargaining, they may initiate a work stoppage or strike. Threatening a
strike can be as advantageous as actually striking, provided that the possibility of a
strike is deemed feasible by employers. The effectiveness of an actual strike
depends on whether the work stoppage can actually force employers to concede to
demands. This is not always the case, as seen in 1984 when the National Union of
Mineworkers, a trade union based in the United Kingdom, ordered a strike that,
after a year, failed to result in concessions and was called off. 
 Whether unions positively or negatively affect the labor market depends on
whom you ask. Unions say that they help increase the wage rate, improve working
conditions and create incentives for employees to learn continued job training.
Union wages were 21% percent higher than non-union wages as of 2002, though
this figure varies according to industry. Critics counter the unions’ claims by
pointing to changes in productivity and a competitive labor market as some of the
primary reasons behind wage adjustments.

If the labor supply increases faster than labor demand, there will be a glut of
available employees, which can depress wages (according to the law of supply and
demand). Unions may be able to prevent employers from eliminating jobs through
the threat of a walkout or strike, which will shut down production, but this
technique does not necessarily work. Labor, like any other factor of production, is a
cost that employers factor in when producing goods and services. If employers pay
higher wages than their competitors, they will wind up with higher-priced products,
which are less likely to be purchased by consumers.

Increases in union wages can come at the expense of non-unionized workers,

who lack the same level of representation with management. Once a union is
ratified by the government, it is considered a representative of the workers,
regardless of whether all workers are actually part of the union. Additionally, as a
condition of employment, unions are able to deduct union dues from employee
paychecks without prior consent. Whether unions were a primary cause of a decline
in labor demand by “old economy” industries is up for debate. While unions did
force wage rates upward compared to non-union members, this did not necessarily
force those industries to employ fewer workers. In the United States, “old
economy” industries have declined for a number of years as the economy shifts
away from heavy industries.

Unions have undoubtedly left their mark on the economy, and continue to be
significant forces that shape the business and political environments. They exist in
a wide variety of industries, from heavy manufacturing to the government, and
assist workers in obtaining better wages and working conditions. 

Assignment 11.  Now answer the following questions:

1.  What are unions?
2.  What do unions do?
3.  Due to what factor have unions experienced limited growth in recent
decades?
4.  What makes collective bargaining a more complicated task?
5.  How has the evolution of the modern worker changed the role of unions?
6.  How do unions affect the labor environment?
7.  What techniques and tools of influence do unions use?
8.  What can unions do during negotiations?
9.  Do legal guidelines provide protection to union activities?
10.  Do unions work?
 11.  What happens if the labour supply increases faster than labour demands?

Assignment 12.  Match up the words on the left with the definition on the right and
translate them:
1.  equilibrium wage a.  The act of attempting to influence business and government
leaders to create legislation or conduct an activity that will
help a particular organization.

2.  marginal b.  Means of restricting the quantity of imports through import

productivity licenses, either of a certain item or from a certain country.
3.  lobby c.  Industrial action in which employees leave the employer’s
premises and refuse to return

4.  import quota d.  any wage in which there is neither an excessive demand or

an excessive supply of workers within the labor market. This
wage would be decided by the needs of the market.

5.  import tariff e.  Change in output that results from changing the labor input
by one unit, all other factors remaining constant

6.  walkout f.  Printed schedule of duties or taxes levied on goods as they

enter a country. It divides all goods into major and sub-
groups for their correct and easy identification for charging
customs duty, and recording the trade data for statistical
purposes.

Assignment 13.  Express your views on the following statements:

 “Without unions, workers will lose many of the protections against
abusive employers. Wages for all will be depressed, even as corporate
profits soar. The American Dream will be destroyed for millions.” –
Kenneth Bernstein
 “The methods by which a trade union can alone act, are necessarily
destructive; its organization is necessarily tyrannical.” – Henry George
 “As can be seen in our history, the only answer to a powerful business
leader is a powerful labor union.” – Hilton M. Weiss
 “It is to the real advantage of every producer, every manufacturer and
every merchant to cooperate in the improvement of working conditions,
because the best customer of American industry is the well-paid worker.”
– Franklin D. Roosevelt
 “Unions have been the best anti-poverty program that actually worked
and did not cost the government a dime.” – Andy Stern
  “I am glad to see that a system of labor prevails under which laborers can
strike when they want to.” – Abraham Lincoln
 “If I went to work in a factory, the first thing I’d do would be to join a
Union.” – Franklin D. Roosevelt

UNIT 7
RECRUITMENT

PART 1. RECRUITMENT AGENCIES. HEADHUNTERS.

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
кадрове агентство, зовнішня фірма, центр зайнятості, задовольняти
певну потребу, електронні дошки оголошень з вакансіями, поточні вакансії,
фірмовий шаблон, зв`язатись з кимось напряму, посередник, потік кадрів,
стягувати значну плату, висловлювати невдоволення, бажаний
(першочерговий) постачальник, виставляти рахунок, виконувати необхідну
функцію, торгова організація, незапрошувані заяви (ті, що не відповідають
вимогам), особистісні зіткнення, обібрати.
1.  middle-man
2.  current vacancies
3.  preferred supplier
4.  branded template
5.  personality clash
6.  recruitment agency
7.  staff turnover
8.  outside firm
9.  unsolicited or inappropriate
applications
10.  employment agency
11.  Internet job boards
12.  trade body
13.  to approach smb directly
14.  to rip off
15.  to invoice for money
16.  to fill a specific need
17.  to begrudge
 18.  to perform a necessary role
19.  to charge substantial fees

Assignment 2.  Read the article of a highly experienced software engineer,

technical leader and manager Stuart Herbert, who explains the advantages and
disadvantages of contemporary recruitment agencies.
 THE ROLE OF RECRUITMENT AGENCIES

What Is A Recruitment Agency?

Recruitment agencies are outside firms who go and find candidates for
employers. Do not confuse recruitment agencies with employment agencies. The
main difference lies in who ends up being your employer. If you get a job through a
recruitment agency, you become an employee of the employer. If you get a job
through an employment agency, you become an employee of the employment
agency.
Why Do Employers Use Recruitment Agencies?
Recruiting people takes a huge amount of time, and for many firms it is a
real struggle to find enough time to do it well. Recruitment is also very much a
numbers game: an employer often has to look at a lot of applications before he
finds the right person for the role. That might sound a bit horrible and impersonal,
and it is, but it’s also how it is. Recruitment agencies fill a specific need. Employers
need the right people to apply for their jobs, but often they don’t have the time to
go and find these people themselves. They use recruitment agencies to do this for
them, so that the employer can spend more of their time interviewing applicants.
Agencies are a major and important part of recruiting for the computing industry in
the UK. You will probably find at least one of your first three jobs in the industry
through a recruitment agency.
How Do They Work?
Agencies get lists of vacancies from employers, and then they place adverts
on internet job boards, and sometimes in other places too. They are also always on
the lookout for new CVs being uploaded to the internet job boards. If you’ve ever
spent time looking through an internet job board at the current vacancies, you will
probably have noticed that very few adverts mention the name of the company that
is hiring. The reason for this is that the agencies are worried about not getting paid:
if you saw a job that you liked, and you applied directly to the firm, then the
recruitment agency wouldn’t get its fee.
Some agencies will take the CV that you give them and send the employer an
edited version. (This, by the way, is the main reason why many internet job boards
only accept CVs in Microsoft Word format). The agency may simply put your CV
into their branded template, and some may remove your personal details to prevent
the employer trying to approach you directly to avoid paying the agency. No
reputable agency will change the contents of your CV without your permission.
Are Agencies For You?
Should you use a recruitment agency at all?
If you know which employers you want to work for, and if they accept direct
applications, then there’s no reason to apply through a recruitment agency. There’s
no benefit in doing so, and with no middle-man for all communication to pass
through, you might find that you prefer always dealing with the employer directly.
The better recruiting agencies can be a great help in getting hired, especially later in
your career when you’re chasing more senior jobs. They’re able to chase a tardy
employer in a way that a direct applicant often can’t get away with, and if they’ve
worked with an employer successfully in the past, they can have a good feel for
what the employer is looking for. It has to be said, though, that many employers
merely tolerate recruiting agencies. Staff turnover inside recruiting agencies can be
very high, making it difficult for the employer to build up a successful long-term
relationship with the agency. Without that partnership, employers often feel that
recruiting agencies don’t understand their requirements well enough, and
employers are often not very good at working with agencies to improve matters.
Recruiting agencies also charge substantial fees to employers, and employers often
begrudge this, rightly or wrongly. However, if recruitment agencies weren’t useful
and performing a necessary role, there wouldn’t be so many of them.
Picking A Recruitment Agency
As in all walks of life, there are good agencies and there are bad agencies,
and it can be difficult even for industry veterans to tell them apart at first. I
recommend checking to make sure that the agency is a member of The Recruitment
& Employment Confederation – the industry’s only recognised trade body for
recruiting agencies. The one exception to the rule is when an agency has an
exclusive contract with an employer. In this situation, the employer has decided to
use a single agency for all recruitment, and all applications have to be submitted via
that agency. If this is the case, you should be able to confirm this from the
employer’s website, or by telephoning the employer.
From an employer’s point of view, employers generally do not like agencies
who send them unsolicited or inappropriate applications (known as “wallpapering
CVs”). Once an agency has done this with your CV, it can be very difficult for you
to get those employers to look at your CV, because the employer hasn’t agreed
payment terms with the agency, and doesn’t want the hassle of an aggressive
agency trying to invoice for money that the employer hasn’t agreed to pay.
If the agency is not a preferred supplier, then one of three things usually
happens:
1) The employer and agency agree payment terms, and the employer will
consider your application.
2) The employer considers your application anyway, but does not agree to
pay anything to the agency.
3) The employer decides that dealing with the agency is too much hassle, and
will not consider your application.
You’ve no way of knowing what will happen in this situation, as it can often
come down to a personality clash as much as financial terms. You’re better off
avoiding this situation if you can, and avoiding any agency you ever catch lying
about their preferred supplier status.
Contracting Through An Agency
The role of recruitment agencies in contract placements is a little different.
Here, the agency normally gets a percentage (known as the agency’s rate) of the
money that the employer’s firm pays for your services. This is normally done by
the firm paying the agency, and by you sending invoices to the agency; i.e. you
don’t bill the firm directly. It’s always worth finding out what the agency’s rate is,
just to make sure that you don’t get ripped off at all. It used to be almost unheard of
for someone to go contracting early in their career, but this is slowly changing.
by Stuart Herbert

Assignment 3.  Match the following words with their definitions.

1.  Employment agency
2.  To compute
3.  Internet job board
4.  Current vacancy
5.  Staff turnover
6.  Middle-man

a.  the act of replacing an employee with a new employee. Partings between

organizations and employees that may consist of termination, retirement,
death, interagency transfers, and resignations.
b.  an agency that helps find jobs for persons seeking employment or assists
employers in finding persons to fill positions that are open.
c.  an intermediary or agent between two parties; especially: a dealer, agent,
or company intermediate between the producer of goods and the retailer
or consumer
d.  a position, office, or place of accommodation that is currently unfilled or
unoccupied.
e.  a website which posts jobs supplied by employers
f.  to determine by calculation; reckon; calculate

Assignment 4.  Mind the difference between an employment agency and a

recruitment agency?
Sandra West, Staffing & Recruitment Consultant at Absolute Staffers
1.  A recruitment firm is a type of company that recruits a new talent for
open positions in the workforce. For example, if there is an open position
for a paralegal, and they have a paralegal in their database, they will set
that person up with an interview for company hiring. Recruitment firms
are a clever sort of middle man for employers and their potential new
employees.

2.  The employment agency is a company which attempts to match the

employment needs of an employer with a worker having the required skill
set and interests. Some agencies are privately owned while others are
sponsored by government.

Assignment 5.  Fill in the gaps with the words given below:

an invoice for; to rip off; to charge; outside firm; to begrudge; unsolicited
1.  If you work as an independent contractor or own a small company that
performs a specialized service, the odds are that you will need to learn
how to write __________ services rendered so you can be paid.
2.  It’s axiomatic that they’re dodgy and they’re going to try and __________
you.
The firm is now broken, so the court is going __________ all the expense
to an account of a contractor.
3.  Our CEO appeared to have owned an __________ for the five last years
to conduct fraud with taxes!
4.  Of all the brothers, he’d always been the one __________ Andre’s role as
their leader.
5.  Generally speaking, the probability of an __________ paper submitted to
any publication being rejected is high.
Assignment 6.  Translate the following into English using the Active vocabulary.
1.  Неможливо не помітити, що нові кадрові агентства останнім часом
з’являються на ринку праці все частіше, тож можна сказати, що вони
користуються попитом серед роботодавців.
2.  Відверто кажучи, роботодавці, як правило, не співпрацюють з
агентствами, які посилають їм незапитувані або неприйнятні резюме.
3.  Як безпосередній кандидат на посаду, ви можете зв’язатись із
начальником відділу кадрів напряму, а не через кадрове агентство.
4.  Офіційним кадровим агентствам заборонено вносити зміни в основні
дані резюме, які надсилаються роботодавцям.
5.  Агентства, зазвичай, отримують відсоток, який фірма-роботодавець
сплачує за послуги, що їй надаються.

Assignment 7.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
ринок праці, нововідкриті вакансії, що ніколи не будуть
розголошуватися рекламними засобами, прискорювач кар’єрного росту, група
задоволених людей, вигідна для обох сторін ситуація, тягнути за собою,
керівник інформаційної служби, люди з загальними знаннями у світі
вузькопрофільних спеціалістів, знайти основну інформацію, звести біографію
до мінімального обсягу, резюме певного матеріалу (короткий зміст), відгук
(зворотній зв’язок), банальні слова, магістр ділового адміністрування,
програми вищого менеджменту Ліги плюща (також так звані “міні-МВА”),
слово, яке привертає увагу, застрибнути в поїзд (встигнути за тенденцією),
загальне інтерв’ю, середній показник по галузі, накладна, належна обачність,
пришвидшити отримання результатів від бізнесу, штатний рекрутер,
своєчасність, попереднє дослідження ринку, створювати список потенційних
керівників, кар’єрний досвід на керівних посадах, переговори щодо заробітної
плати та умов прийому на роботу, ґрунтовна освіта.
1.  prior market research
2.  buzzword
3.  feedback
4.  MBA (Master of Business
Administration)
5.  hackneyed word
6.  job market
7.  executive summary
8.  CIO (Chief information officer)
9.  openings that will never be advertised
10.  generalists in a world of specialists
11.  Ivy League senior management
programs (also called “mini MBAs”)
12.  generic interview
13.  due diligence
 14.  invoice
15.  industry average
16.  catalyst for someone’s career
17.  trail of happy people
18.  win-win
19.  in-house recruiters
20.  timeliness
21.  solid education
22.  executive career background
23.  salary and offer negotiation
24.  to boil your bio down
25.  to spot the essential information
26.  to accelerate business results
27.  to generate a list of potential
executives
28.  to hop on the train
29.  to entail

Assignment 8.  Complete the text using the phrases in the box:

HEADHUNTERS

a.  are usually hired as part of a firm’s b.  a thorough analysis of the hiring
human resources (HR) department firm
c.  make use of various tools d.  to build their workforce with high-
performance teams
e.  a recruiting agency and may work f.  interviews and external references.
for multiple firms

Headhunters have a great role to play in helping (1) __________ that

accelerate business results. They find candidates who match the qualifications
specified by their clients (hiring firms). One of the differences between in-house
recruiters and headhunters is that, in-house recruiters (2) __________, and are
involved in the entire recruitment process, working alongside both the firm and the
candidate. Headhunters work within (3) __________ at the same time. They aren’t
involved in the recruitment process beyond locating the right candidate(s).
However, that was in the past. In present time, headhunters do work as an extension
of the clients’ HR department.
Headhunters need to understand the search requirements, timeliness,
corporate culture, and organizational structure of their clients, and use unique
methods, tools, and approaches to help them find the best professional talent
available. They identify opportunities for the potential executive and define a
candidate profile based on (4) __________. They carry out an analysis of the
market, and create a candidate specification that includes all details about the role,
responsibilities, and opportunities presented by the job.
Headhunters (5) __________ for their search. These include their own
database, prior market research, their professional networks, contacts and social
networks. Once they generate a list of potential executives, they screen candidates
to identity and filter out those who are most suitable for the job. Before the names
of the shortlisted candidates are presented to the client, headhunters will verify that
their qualifications, executive career background, and other information they have
provided is correct.
The client selects the candidate who is most suitable for the job based on
(6) __________. Headhunters then facilitate the process of salary and offer
negotiation, and ensure that both the client and the candidate are satisfied.

Assignment 9.  This is a post by Jorg Stegemann, who has been a headhunter for
more than 10 years – half that time focusing on Europe. Here are some secrets that
headhunters have that may help you find a job.
Love them or hate them, at some point you may find yourself working with
a headhunter. So it’s helpful to understand how they operate. A headhunter has
something you don’t have: inside information from the job market and knowledge
about openings that will never be advertised. An experienced headhunter can search
more efficiently for jobs than you can. Our goal is to match you with a job. Choose
and use us wisely and we can be a catalyst for your career.
If you get that job, we get our fee. Plus we leave a trail of happy people –
you and our client company – whose recommendations are good for business.
In an ideal world, headhunting is a win-win. But here are some things a
headhunter probably will not tell you.
1.  “Three months ago, I was selling shoes.”
You cannot study headhunting; we have all done another job before.
Therefore, we might not understand what you do for a living or what the job we’re
recruiting you for entails. Although we will gladly accept the assignment to search
for a CIO (Chief information officer), for example, we might have no idea about
what makes a good one or whether this job will advance your career.
In other words, we are generalists in a world of specialists. So do your
research and do not expect us to give you well-informed answers to your questions
about the company or job responsibilities.
2.  “I haven’t read your résumé or cover letter.”
Our decision about whether to call you for an opening is based on a 5 to 10-
second glance at your résumé. So make sure we can quickly spot the essential
information. Boil your bio down to a maximum of two or three pages. Consider
adding an executive summary at the top, letting us know what makes you special.
For instance, “MBA, 15 years sales leadership, fluent Spanish,” will get your
message through, even if the recruiter doesn’t read the rest of your résumé. Avoid
hackneyed words like, “dynamic,” “proven track record” or “team player.”
3.  “You don’t make a good presentation.”
 Based on your outfit, the way you carry yourself, or the way you speak, a
headhunter might decide not to put you in front of a customer. Although only one
candidate will be hired, our aim is to get positive feedback on all of them. Our
fantasy is for a client to say, “The four candidates you presented were all fantastic.
I will retain A and B and as a back-up also C and D. You wowed me and I will
never ever again work with anyone else.”
Recruitment is part science and part art. If we have invited you to meet us,
we did so because we thought that you could do the job; that’s the technical
part-“the science.” Your motivation, attitude and presentation are “the art.” Once
you make it to the interview with us, focus on these three. Impress us, and we will
be confident to work with you.
4.  “You are not competitive in today’s labor market.”
There’s no substitute for a solid education if you want to make a career as
a knowledge worker. The good news is that there are excellent alternatives to a
Harvard MBA. Online studies have become more widely accepted and decision
makers care less about where you earned your degree. Furthermore, executive
education such as Ivy League senior management programs (also called “mini
MBAs”) can lift your profile to today’s standards. The term “lifelong learning” –
though overused – is the No. 1 buzzword for today’s career management. If you
want to be competitive for the next decades, you must hop on that train.
5.  “I probably will not find you a job.”
A headhunter may invite you to meet about a specific job or for a generic
interview. To fill a job, we usually see no more than 10 candidates and present the
client with a “short-list” of three or four of them. Only one will be hired, so your
chances of getting the job when there’s an opening are 25-33%.
However, if we invite you for a generic interview, we usually find a new job
for 1 or 2 out of the 10 candidates – that’s an industry average. In that case, the
probability that we will help you land a job is 20%.
In short, although headhunters play an essential role in the labor market and
many jobs can only be accessed through recruiters, the numbers are working
against you.
6.  “I won’t tell you why you have been rejected.”
We will present candidates once, maybe twice – but not a third time if they
have been rejected. Sadly, you may never learn from your mistakes, since we will
not tell you the truth about why you didn’t get a second interview. Our client might
say you seemed narrow-minded or out of date, but we won’t pass that along to you.
To improve your chances in the future, ask headhunters who you have
worked with in the past, colleagues or bosses for feedback. Then take their
comments to heart.
7.  “You are the missing candidate for my “short-list,” but you don’t have
a prayer of getting this job.”
Our second invoice is due upon presentation of a “short-list” of three
candidates. If we only have two good ones, we have to find a third. The terms we
use are “challenger” or “outsider.” If you hear those words, don’t get your hopes
up.
 Finally, beware of unrealistic career moves or a job that sounds too good to
be true. Due diligence is your responsibility – not the headhunter’s. No one cares
about your career as much as you do.
by Deborah L. Jacobs Forbes Staff

Assignment 10.  Match up the words on the left with the definition on the right and
translate them:
1.  job market a.  an advanced degree in business, or a person who
has this  degree
2.  an executive summary b.  a list of things provided or work done together with
their  cost, for payment at a later time
3.  buzzword c.  an event or person that causes great change
4.  invoice d.  The assessment of an employer’s current staff to
ascertain  if any current employees are sufficiently
skilled or qualified  to perform required job
vacancies.  
5.  catalyst e.  The number of jobs that are available in a particular
place  or for a particular type of work
6.  Master of Business f.  A word or expression from a particular subject area
Administration (MBA) that has  become fashionable by being used a lot,
especially on  television and in the newspapers
7.  internal recruitment g.  A nontechnical summary statement at the beginning
of  a business plan that’s designed to encapsulate
your reason  for writing the plan or a brief but
comprehensive synopsis  which highlights its key
points and is generally adapted for  the external
audience.

Assignment 11.  Read the following article and fill in the gaps with the words
given below.
a. crucial d. clear g. intimately j. limpid
b. passed over e. well-roundedness h. inherent k. skillsets
c. strike up f. articulate i. profound l. interpersonal

Wondering which attributes impress headhunters the most? Here are some
interview tips to consider:
1.  Familiarize yourself with the qualities the recruiter is looking for.
It is (1) __________ to be aware of your personal strengths and apply those
to your chosen career path. The important qualities of each candidate depend on the
role for which they are interviewing, and are different for every person.
The truth is, when a headhunter interviews you for a position, they will be
able to tell within seconds whether or not you are right for the position because
they are already (2) __________ familiar with these qualities. Make sure you
prepare for the interview by familiarizing yourself with those qualities so that you
can emphasize them from the start. Top candidates are extremely (3) __________,
mature, and confident, but also humble. Effective communicators – in both verbal
and written form – are also prized.
2.  Be aware of your (4) __________
If you are uncertain, tools such as Myers-Briggs personality tests can be a
valuable resource. They can tell you a lot about who you are, how you interface
with others, and confirm things that you are questioning about yourself. This
information will give you a (5) __________ picture of how you will contribute to
the company for which you are interviewing.
Before you apply or start pursuing a specific position, match up your
personality with the job responsibilities. For example, a trader has the ability to
take in information and immediately see any (6) __________ opportunities. They
are decisive, able to quickly respond, and can react to the market in a thoughtful
manner.
3.  Read industry publications
A standout quality in a candidate is deep knowledge of the industry. Display
that you are an expert. Your job search process should include staying current with
industry news. If you’re in finance, for example, you should be reading Wall Street
Journal, Bloomberg, and other related publications. Use this information to
(7) __________ an interesting conversation during the interview. Headhunters are
impressed with candidates who are able to include poignant examples of current
issues within the industry. They are accustomed to candidates who keep the
interview focused on themselves and their own attributes.
4.  Do your homework on the company and the industry
Be able to display a (8) __________ understanding of the firm for which you
are interviewing. You should know how it grew, when it went public, and its
management team. This is particularly important for entry-level candidates – you
should come into the industry armed with strong research, both about the company
and the business as a whole. This kind of interest in the company will truly separate
you from the majority of candidates who are simply interested in the job rather than
the organization as a whole. Another crucial quality you must display in an
interview is an (9) __________ passion for your industry.
5. Demonstrate (10) __________
Co-founder and president of Leeds Equity Partners, Jeffrey Leeds, suggests
doing something that makes you interesting. At the end of the day, there is life
outside of your job. And the life you lead contributes to the qualities that make you
excellent at what you do and your ability to fit well in a particular culture. Find
ways to tell the interviewer more of your story: Who are you outside of work? How
does that add to your value in the workplace? Many people are (11) __________
for jobs because they lack the (12) __________ skills that will make them a good
addition to the company. Demonstrate these skills, show that you act with maturity
in the face of failure, and have the natural ability to make life more fun and
interesting.
Assignment 12.  Study the following collocations. Translate them into Ukrainian
and use them in the sentences of your own.
Exit~
Depth ~
Screening~ ~interview
Flyback~
Job~

External~
Internal~ ~recruitment
Exclusive~

Executive~
Main points ~
Outline ~ ~summary
Informative~
Descriptive~

Assignment 13.  Translate into English using the words and word combinations
from the Active vocabulary.
1.  Мисливці за кадрами використовують широкий арсенал
інструментів, до яких входять особиста база даних, попереднє
дослідження ринку, професійні мережі та зв’язки, для пошуку
необхідних працівників.
2.  Мисливці за кадрами володіють інсайдерською інформацією щодо
вільних посад, які, однак, не афішуються спеціальними засобами
реклами для непрацевлаштованих.
3.  На сучасному ринку праці переваги у працевлаштуванні отримують
ті шукачі роботи, які займаються поглибленням своєї ґрунтовної
освіти, відвідуючи курси підвищення кваліфікації, онлайн-курси,
наукові конференції, семінари.
4.  Мисливці за кадрами можуть запросити вас для обговорення
конкретної вакансії або для загального інтерв’ю.
5.  Рішення щодо того, чи розглядати вас як потенційного працівника,
може скластися після швидкого огляду вашого резюме.
6.  Однією з відмінних рис між мисливцями за кадрами та штатними
шукачами кадрів є те, що штатні представники залучені на всіх
стадіях працевлаштування нової людини у компанію і зазвичай
працюють на компанію у штаті відділу кадрів.

PART 2. FILLING A VACANCY

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
 займати вакансію, заява, подавати заяву, центр зайнятості, відвідати
(прийти на) співбесіду, опис посадових функцій (обов’язків), заповнити заяву,
вакансія, рекомендації, стипендія, співбесіда, стажування, той, хто дає
рекомендації, не включити (пропустити) інформацію, вичитування
(редагування) тексту, Доктор філософії, ступінь доктора, обраний для
співбесіди, збирання винограду, заповнення поличок, випускник,
автобіографія, анкета (бланк заяви), попередній список претендентів на
посаду, подавати примірник резюме, спеціалізуватися на чомусь, піти на
пенсію, піти з посади, керівна посада, йти у відставку (звільнятися), перевести
на іншу посаду (без підвищення), супровідний лист, внутрішній кандидат,
повідомляти працедавця, що ти звільнишся з роботи (за 2 тижні), охайно
викласти (написати), ступінь бакалавра, кандидат, отримати практичний
досвід, бути важливим (актуальним).
1.  applicant / job seeker / nominee /
candidate
2.  application
3.  application form
4.  to apply for
5.  Curriculum vitae or CV / resume
6.  employment agencies
7.  interview
8.  job description
9.  job vacancy
10.  references / testimonials (US)
11.  short-listed
12.  cover letter
13.  senior post
14.  referee
15.  internal candidate
16.  scholarship
17.  Bachelor’s degree
18.  proof-reading
19.  traineeship / internship
20.  preliminary short-list
21.  graduate
22.  shelf-filling
23.  grape-picking
24.  doctorate
25.  PhD (Doctor of Philosophy)
26.  to submit a copy of your CV
27.  to retire
28.  to abandon/ leave the job
29.  to resign
30.  to fill in the application form
 31.  to major in smth
32.  to give notice (give 2 weeks’ notice)
33.  to move sideways
34.  to attend an interview
35.  to be relevant/irrelevant
36.  to gain practical experience
37.  to lay out neatly
38.  to leave out information
39.  to fill a vacancy

Assignment 2.  Insert the following words in the gaps in the text below:
applicant, application, application form, apply, candidate, curriculum vitae
or CV (GB) or resume (US), employment agencies, interview, job description, job
vacancies, references, short-listed.
Many people looking for work read the (1) __________ advertised by
companies and (2) __________ in newspapers or on the internet. To reply to an
advertisement is to (3) __________ for a job. (You become a (4) __________ or an
(5) __________.) You write an (6) __________ or fill in the company’s
(7) __________, and send it, along with your (8) __________ and a
covering letter. You often have to give the names of two people who are prepared
to write (9) __________ for you. If your qualifications and abilities match the
(10) __________, you might be (11) __________, i.e. selected to attend
an (12) __________.

Assignment 3.  When employees “give notice”, i.e. inform their employer that they
will be leaving the company (as soon as their contract allows), in what order should
the company carry out the following steps?

A.  either hire a job agency (or for a senior post, a firm of headhunters), or
advertise  the vacancy
B.  establish whether there is an internal candidate who could be promoted
(or  moved sideways) to the job
C.  examine the job description for the post, to see whether it needs to be
changed  (or indeed, whether the post needs to be filled)
D.  follow up the references of candidates who seem interesting
E.  invite the short-listed candidates for an interview
F.  make a final selection
G.  receive applications, curricula vitae and covering letters, and make a
preliminary selection (a short-list)
H.  try to discover why the person has resigned
I.  write to all the other candidates to inform them that they have been
unsuccessful

PART 3. JOB APPLICATIONS

 One day, you will apply for your first job as a business graduate.
Unfortunately, many of your classmates, as well as lots of people you don’t know,
will probably also apply for the same job. Your experience and qualifications will
probably be quite similar to those of most of the other candidates. You will submit
a copy of your curriculum vitae (GB) or resume (US). But how do you get on to the
preliminary short-list? What kind of things do you think impress companies hiring
business graduates?

Assignment 1.  Which of the following extracts from different CVs (resumes) or

application letters do you think would help the candidate to get an interview, and
why?
1.  Since coming to university I have played in the women’s hockey team.
We have twice won the national university championship, and are also
well-placed this year, with one month of the season still to go.

2.  My mother is French, and because my father works for a multinational

company, I grew up in four different countries. I did all my schooling in
French, but I also speak (and write) fluent Spanish and Portuguese.  I can
also understand (North African) Arabic, but speak it less well.

3.  I realize that my back ground (qualifications and experience) is probably

no better than that of many other applicants, but I am particularly
interested in marketing position in a telecommunications company,
because I have collected telephone cards, ever since they were first
introduced. I have an extensive collection, including cards from 17
different countries.

4.  Employment
Saturdays, 1997-99, and full-time July 2000, Right Price food store, West
End Avenue (shelf-filling). July 2001, Port Authority Bus Terminal, 8th
Avenue (bus cleaner). August-September 2001, grape-picking, Napa
Valley, California.
November 2001-June 2002, tourist guide at St Patrick’s Cathedral, 5th
Avenue (Saturdays).

5.  I have travelled extensively during my last three summer vacations. In

2000, I travelled around the Mediterranean (Spain, France, Italy, Greece)
for ten weeks. In 2001, I went to Florida for a month, and I spent six
weeks in Bali in 2002. I have consequently met a great many people from
many different cultures, and I am absolutely convinced that this makes
me suitable for a position in international marketing, and that your
company would have a great deal to gain from employing me.

6.  As you will see from my CV, I scored an average of 91 % in my

 university examinations (94 % at the end of the first year, 87 % in my
second year, and 92 % in my final year exams). I stayed on to do a post-
graduate degree in finance and banking, and was encouraged to extend
my Master’s dissertation into a doctorate, which I have done in the past
ten months. I expect to be awarded my PhD in six weeks’ time.

7.  I have played the piano since the age of five. I won scholarships to
summer schools in New York and Switzerland, but at the age of 19
decided to study economics rather than attempt to become a professional
musician (since the world is full of good pianists).

Assignment 2.  Write your own application letter that will help you get an
interview and compare it with the ones of your fellow students.

PART 4. CURRICULUM VITAE (GB) OR RESUME (US)

This is a model for a curriculum vitae or resume.

Curriculum vitae
YOUR NAME
Your address Your phone number(s)
Your e-mail address
Your date of birth
OBJECTIVE
WORK EXPERIENCE or PROFESSIONAL EXPERIENCE

EDUCATION or QUALIFICATIONS

COMPUTER SKILLS LANGUAGES

HOBBIES AND INTERESTS

REFERENCES [or Testimonials (US)]

The following people can provide references:

Notes on Curricula vitae

Name: e.g. Robert Louis Stevenson; or Stevenson, Robert Louis; or

STEVENSON, Robert Louis.

Date of birth: Write the month, e.g. 11 January 1997, because 11/1 = 11
January (GB) and 1 November (US).

Nationality: Always begin with a capital letter: French, German, Japanese,

etc. You can also add Marital status: Single or Married.

Objective: e.g. A job in international marketing; A traineeship in trading;

Marketing assistant; Account manager; Financial analyst.

Work experience: Give dates (months or years) and name of employer (s).
Put the most recent first. Be specific about your duties if they have any
relevance to a business career, e.g.
Summer 2019, Office Assistant, Book Antiqua Ltd, Lucida, New Jersey
The job involved file maintenance, data entry, word processing, proof-
reading,
customer service, and other clerical and administrative tasks.

Education: List this in reverse order, e.g.

2018-19 Master’s Degree in International Management, Bigtown University,
Bigtown (expected date of completion July 2002)
2015-2018 Degree in Business Administration, majoring in
Finance/Marketing, etc. (sometimes called a Bachelor’s Degree)
An English translation of your institution might be Faculty or School of
Business Administration and Economics.
Between 14 and 18 or 19 years old you probably attended what is translated
as a High School or a Secondary School, where you probably obtained the
equivalent of a High School Certificate. Your primary education is probably
not important.

Computer skills: e.g.

Working knowledge of Microsoft Office, Word, Excel, Powerpoint, and
internet software.

Languages: e.g.
French (mother tongue), good knowledge of German and English,
elementary knowledge of Spanish. [Not “knowledges” with an s.]
Or: Fluent in Spanish and English, some knowledge of French and Italian.

Hobbies and interests: e.g.

Underwater skiing, synchronized sewing, deep-sea football, long-distance
cooking, cross-country swimming ...
It is preferable to list hobbies that demonstrate qualities that are relevant to
the job you are seeking.

References [or Testimonials (US)]:

The names and addresses (and phone numbers or e-mail addresses) of two
referees are often required.

Additional notes on CVs / resumes

  European and Asian CVs generally include photos; US resumes do not.
 British CVs include personal details such as date of birth, marital status,
number of children, etc.; US resumes do not.
 British CVs usually include outside work interests (sports, travelling); US
ones sometimes don’t.
 Your CV should be totally honest; you should emphasize your strengths,
but not lie about your experience or skills. It should not say anything that
contradicts what you’ve put on your Facebook page, or similar!
 Leave out information that is irrelevant or that could give some people a
chance to discriminate against you (personal details such as your height,
weight, health, country of origin, religion, etc.).
 Limit your CV to a maximum of two pages.
 Lay your CV out neatly.
 Check for grammatical and spelling or typographical errors, and do not rely
on an automatic spell checker.
 Get someone to check your CV before you send it.

Assignment 1.  Now that you have studied the model for and the notes on
Curriculum vitae, write your own Curriculum vitae.

Assignment 2.  In most cases, the cover letter is your first contact with potential
employers. Use this opportunity to make a strong and convincing impression,
otherwise you may not get the attention you want.

Notes on covering letters:

1.  The covering letter explains why you want the job.
2.  It should be specific to the job you are applying for, adapted to the target
organization, and show that you know about its activities.
3.  It should highlight your skills and achievements, and show how your
background, training, work experience and abilities relate to the job you
are applying for.
4.  It should use formal language, and demonstrate that you have good
written communication skills.

When writing a cover letter, keep to following rules:

Before writing, ask yourself why you are the right person for the job. Which
of your qualities might be essential for the job?
What contributions can you make to the company?
Write an interesting cover letter that impresses the employer.
In your cover letter, emphasise why you are the ideal candidate for the
position.
Avoid negative statements (e.g. I have no / very view experiences ...).
Structure and Content:
Introduction
Mention where you found out about the job offer and show interest in the
position.
Details
Give reasons for your application: Why are you the ideal candidate? What
relevant qualifications, experiences do you have? (Important: refer to the
requirements given in the job description.)
Conclusion
Demonstrate your interest in the position once more.

Note: even if there are hundreds of experiences that you wish to emphasise
on, keep your cover letter short (no longer than 1 page). Employers usually
have to read lots of applications and usually cannot afford spending all day
reading lengthy cover letters.

Study the following sentences and the word combinations. You can’t do
without them when writing your cover letter:

Introduction
I was interested to see your advertisement for (position) in (paper) / on (site).
I noticed with interest your advertisement for (position) in (paper) / on (site)
I am applying for the position of (position), which was advertised (date) in
(paper).
(Name) advised / informed me of a (position) that is available at your
company.
I was referred to you by (name), who informed me of a (position) that is
available at your company.
(Name) informed me that you are / your company is / (name of the company)
is looking for someone with (skills).
(Name) suggested I contact you regarding the position of (position).
Perhaps I am the person you seek in your advertisement in today’s /
yesterday’s (paper).
When I read your advertisement for (position) in (paper) / on (site), I could
not help noticing how well your requirements align with my experience /
education / background / skills / career interests / ...
The position seems to fit very well with my experience / education /
background / skills / career interests / ...
I am very interested in applying for the position (of ...)
My experience / education / background / skills / ... make me an ideal
candidate for the position.
I have the experiences / skills / ... you desire (in your advertisement).
From my enclosed CV / Resume you will find that my experiences /
skills / ... meet the requirements you have outlined for the position.
I believe that my enclosed CV / resume will demonstrate that I have the
experiences / skills / ... you seek.
While my enclosed CV / resume provides a good overview of my
experiences / skills / ..., I have also listed some specific skills that meet your
requirements for the position.
Details
According to your advertisement, your position requires (skills). These skills
I have developed during ... (experience).
I understand the position requires (skills). I ... (details why you meet the
requirements).
I recently graduated from (university) with a degree in (field).
Since 2015 / For 2 years I have been working for (company).
Following my training as a (job title), I spent (time) working for (company).
As (current job) for (company), I have developed my skills and experience as
(job title)
Prior to my current position, I was working for (company), where I ... (jobs,
tasks, skills).
Throughout my career I have acquired a thorough knowledge of ...
I have solid experience in ...
I have more than ... years of ... experience.
My experiences / skills / ... will provide your company with a highly
productive (job title).
I have always had a strong interest in ...
I am very competent in ...
I very much enjoy both ... and ...
My experience in (field) have convinced me that (future position) is a career
option I would like to explore.
My high degree of motivation has been appreciated by my previous
employers.
Thanks to my high degree of motivation I was quickly promoted to positions
of greater responsibility.
The enclosed CV / resume elaborates on the details of my skills and
experience.
Conclusion
I would like very much to talk with you concerning a position at your
company / (name of the company).
I am eager to talk with you about the contribution I could make to your firm.
I would appreciate the chance to meet with you to discuss how I could be a
vital part of your company.
I am confident that I can perform the job effectively, and I am excited about
the idea of working for your firm.
I would welcome the opportunity to discuss these and other qualifications
with you.
If you would like to schedule an interview or otherwise discuss my interest in
this position, please call me at the number listed above.
If you are interested, please contact me at (number).
You may reach me at the above phone number or email address.
I am sure my services would be useful to you.
I will call you in a few days / next week / in early July / ... to discuss an
interview.
Should you have any questions before that time, feel free to call me at the
number listed above / to contact me via the email address listed above.
Should you wish to contact me before then, you may / can reach me via
phone (number) or via email (email address).
I look forward to our meeting.
I look forward to meeting you.
I look forward to talking with you.
I look forward to hearing from you soon.
I look forward to meeting with you to discuss the ways my skills may best
serve your company.
Thank you for your time and consideration.
Your consideration is greatly appreciated.
Thanking you most sincerely for your time and consideration.

Here is a model for a cover letter.

Your address
Your email address

Date (23 May 20-)

Company name
Company address

Dear Mr / Ms (Name),

I am writing to apply for the position of ... advertised on your company’s

website. Having read the job description, I believe that my academic record
and interpersonal skills make me a strong candidate for the position.

I am a final-year student and will shortly be graduating from ... University

with a BA in Business Administration. Last summer I spent three months
gaining practical experience in ..., during a traineeship (BrE) / internship
(AmE) at (organization) in (city). My responsibilities there included
organizing / implementing / developing / coordinating / analysing ... .

As you will see from my CV, last year I spent an exchange semester at the
University of ... . My experience of studying in (language) and working in
(country) have taught me how to live and work in different environments,
and given me some experience of intercultural communication and working
with diverse teams.
 I am fluent in ... and English.

I am available for an interview at your convenience and look forward to

hearing from you.

Yours sincerely,

Your handwritten signature

Your name, typed

Assignment 3.  Now that you have studied the model for and the notes on cover
letter, write your own cover letter.

Assignment 4.  Job interviews are always stressful – even for job seekers who have
gone on countless interviews. The best way to reduce the stress is to be prepared.
Take the time to review the common interview questions you will most likely be
asked.
Then take the time to research the company and to prepare for an interview. This
way, you will be ready with knowledgeable answers for the job interview questions
that specifically relate to the company you are interviewing with.

Interview Questions: Work History

 Name of company, position title and description, dates of employment. 
 Questions about your resume.
 What were your expectations for the job and to what extent were they met?
 What were your responsibilities?
 What major challenges and problems did you face? How did you handle
them?
 What have you learned from your mistakes?
 What did you like or dislike about your previous job?
 Which was most / least rewarding?
 What was the biggest accomplishment / failure in this position?
 What was it like working for your supervisor?
 What do you expect from a supervisor?
 What problems have you encountered at work?
 Have you ever had difficulty working with a manager?
 Who was your best boss and who was the worst?
 Describe your ideal boss.
 Why are you leaving your job?
 Why do you want to change jobs?
 Why were you fired?
 Why were you laid-off?
 Why did you quit your job?
 Why did you resign?
 What have you been doing since your last job?
 Why have you been out of work so long?

Job Interview Questions About You

 What is your greatest weakness?
 What is your greatest strength?
 How will your greatest strength help you perform?
 How would you describe yourself?
 Describe a typical work week.
 Describe your work style.
 Do you work well with other people?
 Do you take work home with you?
 How many hours do you normally work?
 How do you handle stress and pressure?
 What motivates you?
 Are you a self motivator?
 What are your salary expectations?
 What do you find are the most difficult decisions to make?
 What has been the greatest disappointment in your life?
 What are you passionate about?
 What do people most often criticize about you?
 When was the last time you were angry? What happened?
 Why did you choose your major?
 why did you go back to school?
 If you could relive the last 10 years of your life, what would you do
differently?
 Do you prefer to work independently or on a team?
 Give some examples of teamwork.
 What type of work environment do you prefer?
 How do you evaluate success?
 If you know your boss is 100% wrong about something how would you
handle it?
 Describe a difficult work situation / project and how you overcame it.
 Describe a time when your workload was heavy and how you handled it.

Job Interview Questions About the New Job and the Company
 What interests you about this job?
 Why do you want this job?
 Are you overqualified for this job?
 What can you do for this company?
 Why should we hire you?
 Why are you the best person for the job?
 What do you know about this company?
 Why do you want to work here?
 What challenges are you looking for in a position?
 What do you see yourself doing within the first 30 days on the job?
  What would you do if you found out the company was doing something
illegal?
 Are you willing to travel?
 What is good customer service?
 How long do you expect to remain employed with this company?
 Is there anything I haven’t told you about the job or company that you
would like to know?

Interview Questions: The Future

 What are you looking for in your next job? What is important to you?
 Where do you see yourself 5 years from now?
 What are your goals for the next five years / ten years?
 How do you plan to achieve those goals?
 What are your salary requirements – both short-term and long-term?
 Questions about your career goals.
 What will you do if you don’t get this position?

Assignment 5.  Now in pairs interview each other using the questions given above.

Assignment 6.  Read and translate the text. Answer the following questions.
1.  What does the employment contract stand for?
2.  Why is it so important?
3.  What does the contract cover?

EMPLOYMENT CONTRACT

Establishing a successful recruitment process can have a major impact on

your business. Similarly, once you’ve decided to hire someone, setting out the
terms of your agreement with them in a clear written contract helps reduce the risk
of any disputes arising later.
The contract of employment is the agreement between employer and
employee which governs the relationship between both parties.
It need not be in writing and can be implied from the surrounding
circumstances. A written contract can comprise one short handwritten page or a
lengthy document following detailed negotiations. Most contracts fall somewhere
in between.
Failing to provide a written contact of employment results in a lack of clarity
since neither party knows the precise extent of their respective rights, duties and
obligations.
By taking the time to carefully prepare a contract of employment for each
employee, disputes and ambiguity about the employment relationship can be
minimized. As each business has different needs and outlooks, the style and content
of the contract of employment will differ.
The content of each contract will depend on the nature of the business and
the job which is on offer, although there are some standard terms and conditions.
 The laws of the UK provide minimum rights and obligations, including the
right to a safe system of work and minimum notice periods, the duty to obey
reasonable and lawful orders and the requirement not to reveal trade secrets etc.
These rights and obligations are implied into all employment contracts.
However, there are additional protections which a written contract can
provide which are extremely valuable to a business, such as the ability to place a
departing employee on garden leave during the notice period, the ability to make a
payment in lieu of notice rather than require the individual to work out their notice
etc.
Confidential information and intellectual property can be protected. There
may also be legitimate business needs which require protection by way of
restrictive covenants, such as customer connections, trade secrets and confidential
information.
Covenants seek to prevent former employees from damaging the business
following their departure. Legal advice should be taken to maximize the prospects
of enforcement because such clauses are generally considered to be against public
policy and invalid. 
Thought should also be given to the drafting of employment policies and
handbooks which detail additional issues which affect the employment relationship.
These can cover Equal Opportunities, Internet and Email use, Maternity and
Parental Leave etc. and other areas where the employer wishes to detail particular
office procedures. These documents are important because they result in policies
being applied consistently throughout the organization and remove any doubt as to
the particular provisions which apply.
The contract of employment is accordingly an essential component of the
employment relationship and careful consideration should be given to the drafting
of a written contract which can be tailored to the individual business. In that way,
the business secures maximum protection and the employee knows precisely the
terms governing the employment.

Assignment 7.  Find the words or expressions in the text which mean the
following.
1.  to engage the services of a person or persons for wages or other payment
2.  a debate, controversy, or difference of opinion
3.  to consist of; be composed of
4.  an unclear, indefinite, or equivocal meaning
5.  conditions with regard to payment, price, charge, rates, wages, etc.
6.  an action or task required by a person’s position or occupation; function
7.  to contain potentially
8.  a period of time after an employee leaves a job when they continue to be
paid but are not allowed to go to work or to begin a new job
9.  a formal agreement or promise between two or more people
10.  a concise reference book covering a particular subject
Assignment 8.  Find the words in the text that have the same meaning as the words
or expressions below.
1.  Valid
2.  Parley
3.  Composition
4.  Estate
5.  Course, plan of action

Assignment 9.  Find the words in the text that have the opposite meaning than the
words or expressions below.
1.  To deregulate
2.  Public
3.  Careless
4.  To fall short of
5.  Subtractive

Assignment 10.  Translate the following sentences into English.

1.  Трудовий договір – угода між працівником і власником установи або
уповноваженим ним органом, за якою працівник зобов’язується
виконувати роботу, визначену цією угодою з підпорядкуванням
внутрішньому трудовому розпорядку, а власник – виплачувати
працівникові заробітну плату і забезпечувати умови праці, необхідні
для виконання роботи, передбачені законодавством про працю,
колективним договором й угодою сторін.
2.  Трудовий договір вважається укладеним, коли сторони досягають
згоди за всіма умовами, у тому числі за обов’язковими та
додатковими.
3.  Письмова форма трудового договору в сучасних умовах є найбільш
оптимальною.  Особливо її значення збільшується зі зростанням
договірного регулювання праці та розширенням прав підприємств у
регулюванні трудових відносин, відносин щодо додаткового
соціального забезпечення працівників.
4.  Сторони трудового договору самостійно встановлюють той обсяг
робіт, який виконуватиме працівник.  
5.  Додатковими умовами при укладенні трудового договору, які
залежать від волі сторін, можуть бути умови про встановлення
випробування, неповного робочого часу, про соціально-побутові
умови тощо.

Assignment 11.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
технічний пристрій, коли Вам зручно, окупність інвестицій, робити
запити, прискіпливо оглянути щось, робітники зрілого віку, розгублений,
дуже хотіти щось зробити, те, що стосується чогось, скористатися чимось,
заощадження на старість, стипендія, баланс між особистим життям і роботою,
визначений пенсійний план, виходити кудись і спілкуватись, працювати
неповний робочий день, одноосібне господарство, в штаті, знову і знову,
кмітливий у бізнесі, просувати свій бізнес, впроваджувати план в життя,
виявляти і вирішувати проблеми, безкоштовно, довго говорити про щось,
розмови за чашкою кави, пенсійній план, дзвонити по оголошеннях, віднайти
себе (почати спочатку), в робочий час, працювати в командах, сучасний
костюм, дата закінчення, орендувати робоче місце, купувати страховку,
забезпечувати медичне страхування, встановлювати свої робочі години,
поговорити з кимось серед своїх знайомих, утримувати робоче місце,
цілеспрямований, зниження темпів (згасання), показати комусь щось,
просувати себе, ретельно шукати, отримувати чисельні пропозиції, відкладати
на потім (гаяти час, зволікати), спеціалізуватися на чомусь.
1.  at your convenience
2.  return on investment
3.  mature workforce
4.  bewildered
5.  in terms of smth
6.  savings for retirement
7.  defined benefit plan
8.  work-life balance
9.  single-person household
10.  time and again
11.  on staff
12.  date of completion
13.  scholarship
14.  driven
15.  business-savvy
16.  up-to-date suit
17.  piece of technology
18.  winding down
19.  retirement plan
20.  at no cost
21.  on company time
22.  conversations over coffee
23.  to be willing to do smth (to be
eager, to be anxious)
24.  to do a thorough search
25.  to make inquiries
26.  to get multiple offers
27.  to reinvent oneself
28.  to answer advertisements
29.  to talk to everyone in your personal
network
30.  to market oneself
 31.  to implement a plan
32.  to provide health benefits
33.  to market one’s business
34.  to buy insurance
35.  to indicate to smb
36.  to procrastinate
37.  to set one’s own hours
38.  to dwell on something
39.  to troubleshoot and solve problems
40.  to work on teams
41.  to go out and socialize
42.  to take a good hard look at smth
43.  to make use of smth
44.  to maintain workplace
45.  to work on a part-time basis
46.  to major in smth
47.  to lease the workplace

Assignment 12.  Read the interview and say whether “Training an older worker is
a good return on investment”.
Barbara Jaworski is CEO of the Workplace Institute, which has offices in
Toronto and Ottawa. The organization helps older workers and employers to
make use of the talents of people over 50. The Workplace Institute organizes
yearly lists of the top employers for workers over 50 and a yearly conference
on the mature workforce.
Has the recession affected the way people over 50 are planning their
careers?

I think people are a little bewildered. A number of people have been affected
in terms of their savings for retirement. Those are the people who don’t have
defined benefit plans. But we’ve also got a significant portion of people who
can retire at any time but who have stayed in their jobs for now. People are
generally talking about staying in the workforce another five years or so. The
other thing that people are starting to think about is that maybe they aren’t
going to retire. Maybe they are going to work on a part-time basis, either
with their current employer or doing something else.

Are they happy about this or is it because they don’t have a choice
financially?

Statistics are showing that people are not interested in retiring the same way
as they were when our parents were planning their retirement. People are
thinking about staying in the workforce much longer and, in fact, 70 per cent
of people are saying they are not going to retire at all. They plan to work on
some kind of basis after the age of 65. They may enjoy working, or they may
be professionals wanting to continue to contribute. They may also want to
continue working because they live in a single-person household and it’s a
way of getting out and socializing. People aren’t necessarily interested in
more responsibility, but they are interested in continuing to be involved.

What do older workers have to offer employers?

Of course, there are the years of experience. One of the things that I hear
time and again is that, when an older person retires, it often takes two to
three younger people to replace them. That’s because they’ve learned how to
be very efficient and productive in their jobs. They are also much more likely
to stay with an employer longer than a younger person. In the past, we’ve
seen younger people staying in jobs a couple of years and moving on to the
next experience, whereas, if you hire an older worker or you have an older
worker on staff, they are much more likely to stay with your organization. So
any kind of investment you make in training gives you a really good return
on investment.

Employers have certain stereotypes about older workers.

How would you deal with that if you were looking for a new job over the
age of 50?

I think it is important for workers to take a good hard look at themselves and
make sure that their first impression is a positive one. So, that means things
like making sure that they’re wearing an up-to-date suit, and not something
 that they’ve worn for the last 20 years. Depending on the job, they should
make sure they’re indicating to the employer that they’re energetic and that
they’re familiar with technology. For example, they may carry a piece of
technology into the interview and turn it off in front of the employer. They
should talk to the employer about their experience, but not dwell on it.
People don’t necessarily want to hear all of the things that a potential
employee has done in their past. They want to know how they are going to
contribute in the future to benefit the organization. Research tells us that
older workers are much more interested in seeing the organization succeed.
They are much more focused on those kinds of goals than younger people.

Is starting your own business a good option?

It’s a good option if you’re prepared to market yourself and your product and
be a salesperson. It’s very difficult to start your own business without having
a real interest in marketing and sales yourself. It may be that you have skills
in some other area. Unless you can combine that with being able to sell to
other people, it may be difficult for you to start a business.

Do you have one piece of advice for workers over 50?

My advice to people who are 50 is to see themselves as working for another

30 years. People are beginning to think about what this means for them. Does
that mean they are going to stay in what they are doing now? Does it mean
they are looking at starting their own business? It’s a real opportunity to
explore something that you’ve wanted to do and there’s still plenty of time to
do it. People can go back to school, for example. You can completely
reinvent vourself. It’s not really a winding down, as we’ve often thought in
the past. It’s really an exciting time.

Assignment 13.  If you still can’t find a job and choose to be self-employed, Marty
Nemko, who is one of America’s top career coaches, will tell you why it is better to
be an employee rather than self-employed. He will also recommend you what to do
to find a job.

THE CASE AGAINST SELF-EMPLOYMENT

My wife, Barbara, can’t understand why on earth I’d want to be self-

employed. She says:

Employers take care of a million details: they lease the workplace,

maintain it, buy insurance, and provide health benefits, retirement plans, and
so on.
 Employers provide infrastructure: computer support, printing services,
etc. at no cost to the employees.
Employers often provide free training, frequently on company time.

Many people’s favorite part of the job is the social aspect:

conversations over coffee, little celebrations, for example. Most self-
employed people are one- or two-person businesses. It’s hard to do much
celebrating by yourself!

To be self-employed, you must be very self-motivated because there’s no

boss to make you do your work.

To be self-employed, you must be able to develop strategies, implement

your plans, troubleshoot, and solve problems – usually quickly, and by
yourself. Most people need a team to make all of that happen.

You have to be willing and able to market your business. You must be
easily likable, not afraid to ask people for business, and, above all, you must
not procrastinate.
Well, I tell my wife, self-employment has advantages. I can be my own boss.
I set my own hours, the way I work, and which clients I’ll work with. If I
want to buy something for my office, I don’t need three signatures. I don’t
have to work on teams – that drives me crazy. But I have to admit that many
of those advantages are more fantasy than reality: for example, the bit about
setting your own hours. In fact, most self-employed people work very long
hours, and, even when they are away from their work, they continue to worry
about it. So, think very carefully before you change your job status from
employee to self-employed.

Advice I’d give my child – here’s what I’d tell my daughter if she were
thinking of starting a business:
If you’re intelligent, driven, business-savvy, and dying to be self-employed,
develop a business plan and then see if you’re still excited. But I believe that
most people should forget the “romance” of self-employment and instead
look for a job. Do a thorough search, making all your inquiries in just one or
two weeks to increase your chances of getting multiple offers so you can
choose the best one available. Treat that search like a job – most successful
jobseekers spend 20 to 30 hours a week answering advertisements, as well as
calling or writing potential employers, even if a job has not been advertised.
Don’t forget to talk to everyone in your personal network so that as many
people as possible know you are looking for work.

Assignment 14.  Now think why workers leave theirs jobs. Give your ideas about
the possible reasons then read the text and say whether you were right.
 Coming or going? Workers and managers see things differently

Why do people leave their jobs? There are many causes, but employees and
managers give different reasons. Workers say the main reason they leave
jobs is that they do not trust their managers. Managers, however, say most
employees leave because they want more money.
That workers and managers don’t always agree is not new. But a Canadian
study shows that their views are surprisingly far apart. David Aplin
Recruiting questioned 1,600 employees about why they left their jobs. It later
sent the same list of questions to 250 top managers and compared their
answers.
The recruiting firm says that replacing a worker is expensive, as new
employees need to be found and trained. One fifth of workers said they
would have stayed in their jobs if employers had been willing to make
changes.

Why workers leave

EMPLOYEES SAY:
1.  Lack of trust in leaders
2.  Not enough pay
3.  Unhealthy/undesirable culture
4.  Lack of honesty/integrity/ethics
5.  Lack of opportunity for training and development

MANAGERS SAY:
1.  Not enough pay
2.  Unexpected job/career opportunity
3.  Decision to change career
4.  Lack of work-life balance
5.  Lack of opportunity for training and development

Assignment 15.  Read the following quotations. Do you agree or disagree with

them? Express your own opinion.
 “Somebody once said that in looking for people to hire, you look for three
qualities: integrity, intelligence, and energy. And if you don’t have the first,
the other two will kill you. You think about it; it’s true. If you hire
somebody without integrity, you really want them to be dumb and lazy.” –
Warren Buffett
 “Resources are hired to give results, not reasons.” Amit Kalantri, Wealth of
Words
 “A diploma is a piece of paper that is used to acquire another piece of
paper: an employment contract.” – Mokokoma Mokhonoana
 “I hire people brighter than me and I get out of their way.” – Lee Iacocca
 “You cannot push anyone up the ladder unless he is willing to climb.” –
Andrew Carnegie
 “If you pick the right people and give them the opportunity to spread their
wings and put compensation as a carrier behind it, you almost don’t have to
manage them.” – Jack Welch
 “The competition to hire the best will increase in the years ahead.
Companies that give extra flexibility to their employees will have the edge
in this area.” – Bill Gates
 “The best executive is the one who has sense enough to pick good men to
do what he wants done, and self-restraint enough to keep from meddling
with them while they do it.” – Theodore Roosevelt
 UNIT 8.

PRODUCTION

PART 1. PRODUCTION DECISIONS

Assignment 1.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
напівфабрикати, виробничий процес, товар (виріб, найменування),
деталі, реалізувати товари, утримувати запас товарів, середні постійні
витрати на одиницю продукту, обсяг (об’єм), кожна наступна одиниця
продукту, економія від масштабу, втрачений збут, погіршуватися, зберігання,
обслуговування (вантажно-розвантажувальні роботи), знецінення
(амортизація), альтернативна вартість капіталу, виробниче планування,
витрати на виробництво, партія товару, не реалізувати потенціал робітників,
моральна застарілість, нестача (дефіцит), деталь (складова, виріб),
неправильна поставка, товарно-матеріальні запаси (запаси товарів на
складах), тривалість процесу від початку до кінця, місцезнаходження
виробництва, аутсорсинг (залучення зовнішніх ресурсів), завод,
субпідрядник, відправка (відвантаження), керівник виробництва, оптові
знижки, виробничі потужності (станки, споруди ...), недостатня потужність,
надлишкова потужність, директор-розпорядник, складські витрати, здача
товару.
1.  processed materials /work in process
2.  production process
3.  item
4.  parts
5.  average fixed cost per unit
6.  volume
7.  each succeeding unit
8.  economies of scale
9.  lost sales
10.  storage
11.  handling
12.  depreciation
13.  opportunity cost of capital
14.  product scheduling
15.  delivery
16.  cost operation
17.  production runs, shipment,
consignment of goods
18.  obsolescence
 19.  shortage
20.  component
21.  inventory
22.  lead time
23.  location
24.  outsourcing and contracting out
25.  plant
26.  subcontractor
27.  facilities
28.  cost of storage
29.  quantity discounts
30.  insufficient capacity
31.  excess capacity
32.  operations manager
33.  production manager
34.  shipment
35.  defective shipment
36.  to maintain/hold/ store inventory
37.  to distribute goods
38.  to under-utilize the workforce
39.  to deteriorate

Assignment 2.  These are some basic words used in relation to industrial

production. Match them up with the definitions below.
capacity, component, inventory, lead time, location, outsourcing or
contracting out, plant, subcontractor
1.  any company that provides goods or services for another one
2.  any of the pieces or parts that make up a product, machine, etc.
3.  buying products or processed materials from other companies rather than
manufacturing them
4.  the (maximum) rate of output that can be achieved from a production
process
5.  the buildings, machines, equipment and other facilities used in the
production process
6.  the geographical situation of a factory or other facility
7.  the stock of any item or resource used in an organization (including raw
materials, parts, supplies, work in process and finished products)
8.  the time needed to perform an activity (i.e.  to manufacture or deliver
something)

Assignment 3.  After it has been decided what to manufacture, operations

managers have to decide where to manufacture the different products, how much
productive capacity their factories and plants should have, and how much
inventory to maintain. Read the 15 sentences below, and classify them under the
following six headings. Some sentences may fall under two headings.
A.  The consecuences of insufficient capacity
B.  The consecuences of excess capacity
C.  The advantages of large facilities
D.  The disadvantages of large facilities
E.  The advantages of having large inventory
F.  The disadvantages of having large inventory

1.  A long lead time may allow competitor to enter the market
2.  Average fixed cost per unit drops as volume increases because each
succeeding unit absorbs part of the fixed costs, giving economies of scale.
3.  Finding staff and coordinating material flow become expensive and
difficult.
4.  If lead time increases, some customers may go to other suppliers.
5.  Lost sales and market share are usually permanent.
6.  The working environment might worsen and industrial relations
deteriorate.
7.  There are costs of storage, handling, insurance, depreciation, the
opportunity cost of capital, and so on.
8.  You can be more flexible in product scheduling, and have longer lead
times and lower cost operation through larger production runs with fewer
set-ups.
9.  There is always a risk of obsolescence, theft, breakage, and so on.
10.  You can meet variation in product demand.
11.  You may be under-utilizing your work force.
12.  You have protection against variation in raw material delivery time (due
to shortages, strikes, lost orders, incorrect or defective shipments, etc.).
13.  You may be forced to produce additional less profitable products.
14.  You can take advantage of quantity discounts in purchasing.
15.  You may have to reduce prices to stimulate demand.

PART 2. TYPES OF PRODUCTION SYSTEMS

Assignment 1.  Read the following text about types of production.

All production systems, when viewed at the most abstract level, might be
said to be “transformation processes” – processes that transform resources into
useful goods and services. The transformation process typically uses ubiquitous
resources such as labour, capital (for machinery and equipment, materials, etc.),
and space (land, buildings, etc.) to effect a change. Economists call these resources
the “factors of production” and usually refer to them as labour, capital, and land.
Production managers refer to them as the “five M’s”: men, machines, methods,
materials, and money.

Types of Production Systems

 There are three common types of basic production systems: the batch system,
the continuous system, and the project system. In the batch system, general-
purpose equipment and methods are used to produce small quantities of output
(goods or services) with specifications that vary greatly from one batch to the next.
A given quantity of a product is moved as a batch through one or more steps, and
the total volume emerges simultaneously at the end of the production cycle.
Examples include systems for producing specialized machine tools or heavy-duty
construction equipment, specialty chemicals, and processed food products, or, in
the service sector, the system for processing claims in a large insurance company.
Batch production systems are often referred to as job shops.
In the continuous system, items to be processed flow through a series of
steps, or operations, that are common to most other products being processed. Since
large volumes of throughput are expected, specially designed equipment and
methods are often used so that lower production costs can be achieved. Frequently
the tasks handled by workers are divided into relatively small segments that can be
quickly mastered and efficiently performed. Examples include systems for
assembling automobile engines and automobiles themselves, as well as other
consumer products such as televisions, washing machines, and personal computers.
Continuous production systems are often referred to as assembly systems or
assembly line systems and, as noted below, are common in mass production
operations.
The third type of production system is the project, or “one-shot” system.
For a single, one-of-a-kind product, for example, a building, a ship, or the prototype
of a product such as an airplane or a large computer, resources are brought together
only once. Because of the singular nature of project systems, special methods of
management have been developed to contain the costs of production within
reasonable levels.
By William. K. Holstein, Morris Tanenbaum

Assignment 2.  Translate into English. Use the words from the text.
1.  Менеджер виробництва повинен враховувати наявність
універсальних ресурсів задля успішної роботи підприємства.
2.  Вантажівки, автобуси, трактори і важке будівельне обладнання
входять у власність організації .
3.  Наша компанія також займається виробництвом спеціалізованої
хімічної продукції за допомогою обладнання загального
призначення.
4.  Кілька відділів фірми займаються обробкою заяв від покупців, які
незадоволені якістю отриманої продукції.
5.  Продуктивність виробництва залежить від здатності підтримувати
витрати виробництва у межах розумного.
6.  Багато науковців сперечається щодо доцільності поділу виробництва
на серійне, безперервне і проектне (одноразове).
 Assignment 3.  Read the text about mass production and fill in the gaps with the
words  given below.
a.  abated d.  prompt g.  comprehensive j.  intermitted m.  time-conscious

b.  fixed e.  capital-intensive h.  assembly k.  competitive n.  mechanization

c.  stringently f.  flow i.  tedious l.  turnover o.  stifle

Mass production is the manufacture of large quantities of standardized

products, frequently utilizing (1) __________ line technology. Mass production
refers to the process of creating large numbers of similar products efficiently. Mass
production is typically characterized by some type of (2) __________, as with an
assembly line, to achieve high volume, the detailed organization of materials
(3) __________ careful control of quality standards and division of labor.
Benefits of Mass Production

Mass production, if (4) __________ monitored, typically results in high-

accuracy assembly, as production line machines are input with (5) __________
parameters. Labor costs are often (6) __________ for mass-produced products;
assembly line production replaces many operations that were previously performed
by employees, resulting in lower head counts.
Products that are mass-produced are assembled at a quicker rate due to
increased automation and efficiency. This helps with (7) __________ distribution
and marketing of an organization’s products with the potential to create a
(8) __________ advantage, often resulting in higher profits. For example,
McDonald’s has a competitive advantage due to the speed at which it can produce a
meal for the (9) __________ customer.

Disadvantages of Mass Production

Mass production may result in wasted resources. Establishing an automated

assembly line is typically (10) __________; if there is a production design error,
extensive costs may be required to redesign and rebuild mass production processes.
Additionally, if one area of mass production is (11) __________, the entire
production process may be affected.
Employees that are part of a mass production assembly line may lack
motivation, as tasks are (12) __________ and often boring. This may lead to low
employee morale and increased levels of (13) __________. Mass production may
(14) __________ flexibility; production processes can be cumbersome and
expensive to change. For example, if a pharmaceutical company has a
(15) __________ assembly line in place for the production of a popular drug, it
would be difficult to respond to a Food and Drug Administration (FDA) regulatory
change in regards to how the drug is to be produced.
Assignment 4.  Match up the words on the left with the definition on the right and
translate them:
1.  capital-intensive a.  a cycle of purchase, sale, and replacement of a stock of goods
the amount received in sales for a stated period; the number o
persons hired within a period to replace those leaving o
dropped from a workforce.
2.  mechanization b.  refers to a business process or an industry that require large
amounts of money and other financial resources to produce
a good or service.
3.  throughput c.  fabrication-outfit specializing in small quantities of custom
made parts, produced according to customer specifications.
4.  turnover d.  the act of implementing the control of equipment with
advanced technology; usually involving electronic hardware
“automation replaces human workers by machines”.
5.  job-shop e.  productivity of a machine, procedure, process, or system ove
a unit period, expressed in a figure-of-merit or a term
meaningful in the given context, such as output per hour, cash
turnover, number of orders shipped.
6.  costs of production f.  an arrangement of workers, machines, and equipment in which
the product being assembled passes consecutively from
operation to operation until completed.
7.  assembly line g.  related to making or acquiring goods and services that directly
generates revenue for a firm.

Assignment 5.  Study the use of the word “turnover”. Consult a dictionary and find
a proper Ukrainian translation:
Foreign trade~
Ratio of capital~
Money~ ~turnover
Freight~
Passengers~

Assignment 6.  Active vocabulary. Match the Ukrainian words and word

combinations with their English equivalents:
безперервне виробництво, виробництво без запасів, ощадливе
виробництво, виробництво точно в строк, запасати надлишки, приписувати
комусь щось, відділ, бути повністю протилежним, зривати виробничий
процес, перевищувати узгоджений графік (план) або квоту, активи,
однопрофільне (спеціалізоване виробництво), невиправдані витрати (витрати,
яких можна уникнути), мінімізувати витрати на утримання запасів,
розгалужені мережі, покладатися на взаємну довіру і довготривалі відносини,
деталі з дефектами, час, який витрачається на очікування та транспортування,
створення попиту, розташовувати виробничі потужності недалеко від чогось,
багатопрофільні робітники, втрати від перевиробництва, час, необхідний для
переналаштування обладнання, незайняті робітники, скорочений час
виробничого циклу, дефекти продукції, розміщувати замовлення.
1.  Just-in-Time production
2.  Lean production
3.  Stockless production
4.  Continuous flow manufacture
5.  avoidable costs
6.  assets
7.  extensive networks
8.  section
9.  specialized production
10.  waiting and moving time
11.  multi-skilled employees
12.  waste from overproduction
13.  idle workers
14.  shortened throughput time
15.  set-up time
16.  product defects
17.  defective components
18.  creation of demand
19.  to credit smth to smb
20.  to be wholly contrary to smth
21.  to place an order
22.  to exceed the agreed schedule or
quota
23.  to minimize the cost of holding
inventories
24.  to sabotage the production process
25.  to rely on mutual trust and long-term
relationships
26.  to situate facilities close to the
location of smth
27.  to stock extras

Assignment 7.  Read the text below, and insert the eight words in the spaces.
capacity, component, inventory, lead times, location, outsourcing, plants,
subcontractor

JUST-IN-TIME PRODUCTION

Manufacturing companies are faced with a “make-or-buy decision” for every

item or (1) __________ they use (as well as for every process and service). Do they
make it themselves or do they outsource, and buy from a (2) __________? If a
company assembles products supplied by a large number of subcontractors, they
face the problem of how much (3) __________ they require.
In Just-In-Time (JIT) production – also called lean production, stockless
production, and continuous flow manufacture – nothing is bought or produced until
it is needed. Each section of the production process makes the necessary quantity of
the necessary units at the necessary time – which is when it is required by the next
stage of the manufacturing process, or by distributors or customers.
The JIT system is usually credited to Taiichi Ohno, who was vice-president
for manufacturing with Toyota in Japan in the early 1950s – although he stated that
he got the idea from American supermarkets! JIT is wholly contrary to the
European and American logic of encouraging greater productivity, and welcoming
production that exceeds the agreed schedule or quota, and stocking extras in case of
future problems.
JIT minimizes the cost of holding inventories, which are regarded negatively,
as avoidable costs, rather than as assets. The large Japanese manufacturing
companies have long practised (4) __________, and generally use extensive
networks of small subcontractors. Of course, if a single subcontractor fails to
deliver a component on time, the whole production process is sabotaged, but the
Japanese industrial system relies on mutual trust and long-term relationships. Small
suppliers often attempt to situate their facilities close to the (5) __________ of a
larger company with which they work.
The Japanese also prefer small, specialized production (6) __________ with
a limited (7) __________, in which,wherever possible, all the machines required
for a certain job are grouped together. This avoids all the waiting and moving time
involved in sending half-finished items from one department to another, although it
often requires flexible, multi-skilled employees.
JIT thus greatly reduces transportation and inventory costs, and should
ensure that there is no waste from overproduction, or from idle workers waiting for
parts. It allows increased productivity because of shortened throughput time. If
factories are equipped so that set-up times are short, very small production runs are
possible. Any quality problems or product defects should be noticed more quickly,
production (8) __________ __________ are reduced, and the firm can react more
rapidly to demand changes.

Assignment 8.  According to the text, are the following sentences TRUE or

FALSE? If they are false, say why.
1.  In JIT, products are “pulled” through the manufacturing process from the
end, rather than “pushed” through from the beginning.
2.  JIT originated in American manufacturing.
3.  JIT encourages production workers to exceed their production targets.
4.  Companies using the JIT system and outsourcing many of their
components are highly dependent on their subcontractors.
5.  In a JIT system, a delivery of defective components can be replaced from
the reserve inventory.
6.  JIT depends on harmonious partnerships between a company and its
 suppliers.
7.  Japanese production systems generally speed up the entire manufacturing
process
8.  JIT leads to economies of scale.
9.  JIT production – manufacturing only when a customer places an order –
does not encourage innovation or the creation of demand.

Assignment 9.  Read the article about Taiichi Ohno’s lean production.

TAIICHI OHNO’S LEAN PRODUCTION

Ohno switched to work as a production engineer for Toyota, a car company,

towards the end of the second world war, at a time when its productivity was way
below that of America’s mighty Detroit industry. Toyota’s boss declared that it
“must catch up with America within three years”.
Ohno decided there was no reason other than inefficiency and wastefulness
why Toyota’s productivity should be any lower than that of Detroit. Hence he set
out to eradicate inefficiency and eliminate waste in the part of the production
process that he was responsible for. This became the core of the so-called Toyota
Production System (TPS) that he and others subsequently developed between the
mid-1940s and the mid-1970s.

Quote from Ohno: “Costs do not exist to be calculated, they exist to

be reduced.”
As we all know TPS has two pillars: Continuous Improvement (often
referred to as Kaizen) and Respect for People. The word Kaizen is often referred to
as Toyota’s basic approach of doing business. The notion of “respect for people”
shows that Toyota truly does care about the individuals that work for them and their
contributions they can give to the company. Along with continuous improvement,
employees should know that they are not only empowered to be involved, they are
expected to continue learning and growing as individuals. This in turn not only
helps employees have more satisfying careers, but also will help the company use
each employees potential of contributing and making the company more successful
and profitable through these continuous efforts. By providing an atmosphere such
as this, it helps people embrace change, where as traditionally people are resistant
to change.

Where did Toyota get the idea for the TPS?

Soon after WWII had ended and when Taiichi Ohono became the machine
shop manager for the Toyoda Group Automotive Operations, they experienced
drastic material shortages because of the War. Mr. Ohno gradually developed a
more efficient assembly line process and started creating unique ideas which are
now known to be key points in the TPS. Ohno credited the TPS to two concepts.
One was developed from Henry Ford’s book “Today and Tomorrow”. This helped
them understand manufacturing and gave the basis of a production system and what
Ford used. Toyota wanted to emulate the Ford assembly and production line. Ford
had mastered the conveyor belt system and Toyota knew they could learn a lot that
could be used for their production lines. One thing that worried them is Ford was
using mass production, but they had the market for it. Toyota could not afford to
keep the kind of inventory nor manpower that was necessary for that type of mass
production because their market was much smaller. Important to note: Mr. Ohno
and his associates took the things they learned from Ford and tailored it to Toyotas
needs.
The second concept as we know was driven by the supermarkets in the
United States observed during a visit in the late 50’s. The supermarkets helped
them with understanding replenishment and how products were constantly being
delivered.
Ohno believed that eliminating waste should be a business’ first objective.
Muda is a Japanese term that defines something that is wasteful and does not add
value. It is extremely important and a key element to separate all of the value added
and non value added activities. Once you reach this point you can clearly see what
the customer is paying for and start working on how to minimize waste. The seven
wastes of TPS are Overproduction, Waiting, Transporting, Too much machining
(Over-processing), Inventories, Moving, Making defective parts and products. Mr.
Ohno believed that asking “Why” 5 times should help you define what the root
cause of the problem is. He believed there should not be stagnation during any
process of the production line. Ohno would also get angry and scold others when
products were sitting and not being used. Products evolve and change as
technology changes. An example of takt time: in an assembly line a product is
moved to different stages after a certain time (takt time). The time to complete each
stage must be less than the takt time in order to complete the product in the given
lead time and meet the customer demand. Problems hind behind inventory. Ohno
helped in implementing the “Just-in-time” concept which in turn would assist with
level loading and making a continuous flow within the production line.

Assignment 10.  Match the following word with their definition:

a.  wastefulness
b.  to scold
c.  replenishment
d.  to implement
e.  inefficiency
f.  to eradicate
g.  manpower
h.  stagnation
i.  overproduction
j.  to emulate

1.  the process by which something is made full or complete again.

2.  total supply of personnel available or engaged for a specific job or task.
 3.  a prolonged period of little or no growth in an economy; a state of
inactivity (in business or art etc).
4.  to carry out; put into action; perform; to put into effect according to or by
means of a definite plan or procedure.
5.  to reprimand or criticize harshly and usually angrily; to find fault;
reprove.
6.  useless or profitless activity; using or expending or consuming
thoughtlessly or carelessly; excessive or imprudent expenditure.
7.  to obliterate; stamp out; to get rid of, eliminate.
8.  manufacturing in excess of need or stipulated amount.
9.  the lack of ability to do something or produce something without wasting
materials, time, or energy.
10.  to strive to equal or excel; imitate with effort to equal or surpass.

Assignment 11.  Translate into English. Use the words from the text.
1.  Дуже часто марнотратство є першопричиною перевиробництва, що у
довгостроковій перспективі призводить до застою.
2.  Для того, щоб забезпечити ефективне використання робочої сили,
потрібно пристосувати її до потреб підприємства.
3.  Галузі промисловості, які не здатні сприймати зміни, змушені
копіювати технологічні нововведення своїх суперників із-за
кордону.
4.  Постійне поповнення ресурсів було досить вигідним для
промисловості Австрії, але згодом уряд зіткнувся з проблемою
стрімкого скорочення золотовалютних резервів.
5.  Замість того, щоб постійно сварити працівників, які чинять опір
змінам, досвідчений керівник виробництва повинен втілювати в
життя ідею безперервного розвитку здібностей персоналу.
6.  На 71 засіданні Генеральної Асамблеї ООН керівники держав знову
наголошували на тому, що кожна країна повинна зробити свій
внесок задля викорінення бідності і трансформації світового
суспільства згідно з ідеями сталого розвитку.
7.  Опанувавши систему конвеєрного виробництва, Форд зумів
ліквідувати відходи та уникнути виготовлення несправних
запчастин, що згодом забезпечило успіх його компаній.

Assignment 12.  Read the interview with Norman Bodek about Taiichi Ohno and
fill in the gaps with the words given below
a.  fulfilling e.  forceful i.  opulent
b.  ostensible f.  buzzing j.  downsizing
c.  warehouses g.  retrained k.  junky
d.  ruthless h.  automated l.  acquired
Interviewer:
 What was Ohno like?
Bodek: Well, Ohno had a reputation of creating fear in others. He was often
called “(1) __________” in his desire to drive out waste from the Toyota system.
One day Ohno walked into one of the large (2) __________ at Toyota Gosei
and said to the staff of managers around him, “Get rid of this warehouse and in one
year I will come back and look! I want to see this warehouse made into a machine
shop and I want to see everyone trained as machinists.” And sure enough, one year
later that building became a machine shop and everyone had been (3) __________.
Ohno did not tell then how to do it. He just demanded that they do it. Ohno
knew the economic benefits to Lean, knew it wasn’t easy to bring change, and was
(4) __________ in bringing it forward.
Another time I was standing inside a factory near Tokyo, in front of a newly
(5) __________ automated delivery system. The system allowed an operator to
pick out the necessary parts to be delivered to the assembly line. It was impressive
to see the operator and her proficiency using the automated system (6) __________
orders.
A former assistant to Mr. Ohno was standing with a group of the company’s
managers and he said to me, “Norman, what would Ohno have said about this
(7) __________ warehouse?” I said, without thinking, Ohno would have said, “Get
rid of it.” All the managers looked shocked. I am sure their minds were
(8) __________. “How can we get rid of it?”
Interviewer: Ohno seems demanding, arbitrary and difficult. Yet, employee
participation is a major source of Toyota’s strength. How do you explain the
(9) __________ paradox?
Bodek: From what I was told, Ohno was both ruthless and relentless. Toyota
needed that kind of energy to go from producing (10) __________ cars in 1960 to
world’s most (11) __________ automotive company. Toyota was rough on all
employees and on all of their suppliers but an employee has never been laid off (no
(12) __________, a supplier has never gone bankrupt (in fact, each supplier is a
leader in their field), and Toyota is able to open new plants in America while we go
to China.

Assignment 13.  Expand your knowledge about TPS by memorizing the following

information.
What if we are running faster than Takt Time?
- Inventory increases
- Lead times increase
- Demand on suppliers increase
- Cost increase

What if we are running slower than Takt Time?

- Overtime needed to meet demand
- Product increases in cost
- Shipping costs will increase
- Customer dissatisfaction
 - Missed shipments

Toyota’s Six Rules

- Do not send defective products to the subsequent process.
- The subsequent process comes to withdraw only what is needed.
- Produce only the exact quantity that was withdrawn by the subsequent
process.
- Level the production.
- Kanban is a means of fine tuning. (It is a simple and clear way to
communicate that something is needed).
- Stabilize and rationalize the process.

Assignment 14.  Study the following collocations.

1.  shortage
-  labor shortage
-  shortage of oil
-  power shortages
-  severe shortages
-  imminent shortage
2.  to eliminate
-  to eliminate barriers
-  to eliminate the risk
-  to eliminate corruption
-  to eliminate enemies
-  to eliminate handicaps
3.  stagnation
-  general stagnation
-  stagnation of water
-  industrial stagnation
-  consequent stagnation
-  to tolerate the stagnation
4.  to fulfill
-  to fulfill one’s dream
-  to fulfill the delivery
-  to fulfill the reputation
-  to fulfill one’s duty
-  to fulfill the debt
5.  to implement
-  to implement a plan
-  to implement the directives
-  to implement a policy
-  to implement the recommendations
-  to implement the measures

PART 3. QUALITY
Assignment 1.  Active vocabulary. Match the Ukrainian words and word
combinations with their English equivalents:
менеджер, що відповідає за якість, накладати обмеження на когось,
бути відтвореним у великих об’ємах, запустити у масове виробництво, нести
витрати, абсолютна якість, наявність відповідного попиту, проходити
червоною ниткою, злітати з язика, закласти, покращувати процес, банальне
(часто вживане слово), працювати відповідно до стандартів якості,
виконувати замовлення, материнські плати, виробнича лінія (конвейер),
розробка технологічного процесу, обробка сировини і виготовлення
продукції, доставка готової продукції, досягти порогу, змінні витрати,
обернена пропорційна залежність, система витягування (виробництво товарів
в залежності від поточного попиту), тривалість повного виробничого циклу,
розміщувати замовлення.
1.  printed circuit boards
2.  quality manager
3.  well-worn word
4.  ultimate quality
5.  demand pull
6.  production line
7.  lead time
8.  preprocessing (components of the
lead time)
9.  processing (components of the lead
time)
10.  post processing (components of the
lead time)
11.  variable costs
12.  inverse relationship
13.  pull systen of production
14.  to reach threshold
15.  to implant
16.  to productionize the designs
17.  to slip off the tongue
18.  to knock on through
19.  to put restraints on smb
20.  to be reproducible in volume
21.  to work to quality standards
22.  to refine the process
23.  to incur expenses (losses) / to bear
losses
24.  to place an order
25.  to fill an order
Assignment 2.  Answer the following questions:
1.  When consumers talk about quality, what different aspects or criteria do
they have in mind? How would you define quality in relation to the
following?

a pizza a small car

a restaurant meal a ski suit
a golf club a laser printer

2.  What expenses can a company avoid by preventing poor quality before it

happens?

Read an interview with Alan Severn, the Quality Manager of Arcam, a

British manufacturer of specialized, high quality hi-fi equipment: CD
players, amplifiers and tuners.

Alan Severn I’m Alan Severn, I’m the Quality Manager at Arcam, and my
responsibilities are exactly that, for the quality of the product, the quality of the
services, and the quality of all interfaces which involve the customer and our
customers.
The word “quality” is a very easy one that slips off the tongue, it’s quite easy
to say but means an awful lot of things. I have a department of three people, but in
essence, everybody in the company works for me, because everybody works for the
word “quality”. Quality starts and must start at the conception of everything and go
through every department within the company. You can’t pack quality into a box at
the end of the line. You have to implant it at the start of a process, and it knocks on
through every process until it goes into a box, into your home, into your living
room, and you switch it on and you’re a happy person.
The two aspects of quality are that we must reproduce, must, sorry, design to
reproduce excellent hi-fi equipment, and that must be a design which has got
quality built into it in terms of the performance of the product, but also must have
the ability to be produced in volume. Er, now, that means the designers have to
have restraints put on them, and that restraint means that they must work to quality
standards to ensure that their designs are reproducible in volume. They must design
for manufacture. Now that’s one part of the quality aspect and that’s where it starts
within Arcam, the ability to have (a) a perfect design and (b) that the design is
reproducible.
They hand that information on to our manufacturing departments. Now the
manufacturing departments have the same term, the same message, the same cause
in life, to then, to make sure that the designs that are now designed for manufacture
are designed, sorry, are manufactured, for production. Now that may sound a bit
daft, but when you move in to the next stage you have to productionize the designs,
you have to ensure that the things will go together every time on the line. And
that’s a function of design, it’s a function of manufacture, that when two pieces of
metal come together, that they go together every time, five hours a day, ten hours a
day, 28 days in a month, etc., etc.
And to that end we have to then implant into our suppliers, and our
manufacturing people, the quality standards which will achieve that aim, our goals.
So, our message spreads then from our designers into our manufacturers and our
subcontractors who make the metalwork, who make the printed circuit boards, who
assemble the printed circuit boards, etc., etc.
Quality’s a very well-worn word and in this business, certainly in Arcam’s
business, it is an ongoing activity within the company, and it’s called TQM, Total
Quality Management, that we improve our quality on a daily, weekly, monthly,
yearly basis. So we never stop refining the process. We don’t know when we’re
going to arrive there because we don’t know what the ultimate quality is. I guess
the ultimate quality is that we build a thousand units, we ship a thousand units, and
we don’t get any of them back, and they last for ten years. That I think is
probably ... you’ve arrived.

Assignment 3.  Read the texts and translate them into Ukrainian. Pay special
attention to the words given in bold:

1.  Avoidable cost is an expense that will not be incurred if a particular

activity is not performed. Avoidable cost refers to variable costs that can be
avoided, unlike most fixed costs, which are typically unavoidable. While avoidable
costs are often viewed as negative costs, they may be necessary to achieve certain
goals or thresholds.
2.  Economies of scale is the cost advantage that arises with increased output
of a product. Economies of scale arise because of the inverse relationship between
the quantity produced and per-unit fixed costs; i.e. the greater the quantity of a
good produced, the lower the per-unit fixed cost because these costs are shared over
a larger number of goods.
3.  Lead time is broken into several components: preprocessing, processing
and post processing. Preprocessing involves determining resource requirements and
initiating the steps required to fill an order. Processing involves the actual
manufacturing or creation of the order. Post processing involves delivery of
products to the market.
4.  Just in time is a “pull” system of production, so actual orders provide a
signal for when a product should be manufactured. Demand-pull enables a firm to
produce only what is required, in the correct quantity and at the correct time.
This means that stock levels of raw materials, components, work in progress
and finished goods can be kept to a minimum. This requires a carefully planned
scheduling and flow of resources through the production process. Modern
manufacturing firms use sophisticated production scheduling software to plan
production for each period of time, which includes ordering the correct stock.
Supplies are delivered right to the production line only when they are needed.
5.  Excess capacity refers to a situation in which actual production is less
than what is achievable or optimal for a firm. This often means that the demand in
the market for the product is below what the firm could potentially supply to the
market. The amount of excess capacity within an industry is a signal of both the
health of that industry and the demand for the products it produces.

Assignment 4.  Translate into English. Use the words given in the Active
vocabulary.
Точно в строк (ТВС) – найбільш поширена в світі логістична
концепція. Основна ідея концепції ТВС полягає в наступному: якщо
виробничий розклад задано, то можна так організувати рух матеріальних
потоків, що всі матеріали, компоненти і напівфабрикати будуть надходити в
необхідній кількості, в потрібне місце і точно до призначеного терміну для
виробництва, збірки або реалізації готової продукції, при цьому страхові
запаси, які заморожують кошти фірми, не потрібні. ТВС є також одним з
основних принципів бережливого виробництва. Усереднені дані, отримані
при обстеженні більше 100 об’єктів, виявилися такими:
• скоротилися запаси незавершеного виробництва на 80%;
• запаси готової продукції знизилися на 33%;
• обсяг невиробничих запасів замість 5-15 днів скоротилися до 4 годин
– 2 днів;
• тривалість виробничого циклу зменшилася на 40%;
• виробничі витрати знизилися на 10-20%;
• значно підвищилася гнучкість виробництва;
• час реалізації продукції скоротилося в 2 рази;
• витрати на впровадження ТВС швидко окупилися (через кілька
місяців).
Ощадливе виробництво – концепція управління виробничим
підприємством, заснована на постійному прагненні до усунення всіх видів
втрат. Ощадливе виробництво передбачає залучення до процесу оптимізації
бізнесу кожного співробітника і максимальну орієнтацію на споживача.
Виникла як інтерпретація ідей виробничої системи компанії Toyota
американськими дослідниками її феномена.
Відправна точка концепції – оцінка цінності для кінцевого споживача
на кожному етапі створення продукту. В якості основного завдання концепція
передбачає постановку процесу безперервного усунення витрат – викорінення
будь-яких дій, які споживають ресурси, але не створюють цінності для
кінцевого споживача. Наприклад, споживачеві абсолютно не потрібно, щоб
готовий продукт або його деталі лежали на складі. Проте, при традиційній
системі управління складські витрати, а також всі витрати, пов’язані з
переробкою, браком, і інші непрямі витрати перекладаються на споживача.
Відповідно до концепції ощадливого виробництва вся діяльність
підприємства поділяється на операції та процеси, що додають вартості для
споживача, і операції і процеси, що не додають вартості для споживача.
Завданням ощадливого виробництва є планомірне скорочення процесів і
операцій, що не додають вартості.
 Тайіті Оно (1912-1990), один з творців виробничої системи компанії
Toyota, виділив 7 видів втрат:
• втрати через перевиробництво;
• втрати часу через очікування;
• втрати при непотрібному транспортуванні;
• втрати через зайві етапи обробки;
• втрати через зайві запаси;
• втрати через непотрібні переміщення;
• втрати через випуск дефектної продукції.
• та нереалізований творчий потенціал співробітників.

TEST

Assignment 1.  Find a suitable word or word combination for the following

definition:
A period of time during which there is less trade, business activity and
wealth than usual.
1.  A country, company or person you are fighting or competing against;
opponent.
2.  To remove government rules and controls from some types of business
activities.
3.  To deliberately make someone or something appear less important or
valuable than they really are.
4.  To pay someone money because they have suffered injury, loss or
damage.
5.  The state of becoming old-fashioned and no longer useful because
something else that is newer and better has been invented.
6.  The act of loading and unloading and moving goods within a factory
especially using mechanical devices.
7.  A formal meeting at which someone is asked questions in order to find
out whether they are suitable for a job, course or study.
8.  To give someone a better, more responsible job in a company.
9.  Money added to someone’s wages, especially as a reward for good work.
10.  Someone who finds people with right skills and experience to do a
particular job and persuades them to leave their present jobs.
11.  A formal, usually written request for something such as a job, place at
university or permission to do something.
12.  A reduction of the value or price of something.
13.  A group of similar or related goods that is produced by using a particular
group of manufacturing procedures, processes and conditions.
14.  People’s desire or need to buy or use particular goods or services.

Assignment 2.  Write the definitions for the following words and word
combinations.
1.  Collective bargaining
 2.  To picket
3.  Public sector
4.  Outsourcing
5.  Capacity

Assignment 3.  Translate the following sentences using vocabulary from the

texts. (Labour Relations and Production)
1.  Керівництво заводу не повинно ставитися до профспілок як до
ворога і применшувати їхню роль у промисловому суспільстві. Одна
з головних цілей профспілок – представляти та висловлювати
потреби працівників.
2.  Якщо хоча б один субпідрядник не постачає складові частини
вчасно, весь виробничий процес зривається, але японська
промислова система базується на взаємній довірі і довгострокових
відносинах.
3.  Якщо компанія утримує великі склади, вона захищена проти
коливань часу доставки сировинних матеріалів через дефіцит,
страйки, втрачені замовлення та неякісні перевезення.
4.  Наслідком недостатньої виробничої потужності можна вважати
занадто довгий час виробництва, що дозволяє конкурентам увійти на
ринок.
5.  Якщо ви зацікавилися вакансіями в нашій компанії, вам необхідно
надіслати нам вашу заяву, резюме, супровідний лист та
рекомендації. Наші менеджери переглянуть ваші документи і
вирішать, чи ваша кваліфікація та здібності відповідають вимогам на
посаду.
6.  Профспілки створені для того, щоб представляти та висловлювати
потреби працівників. Сказати, що вони займаються тільки
забезпеченням гідних зарплат, прийнятних робочих годин та
безпечних робочих умов, означає не сказати нічого.
7.  Якщо компанія утримує великі склади, їй не уникнути витрат на
зберігання, завантажувально-розвантажувальні роботи, страхування,
знецінення продукції.
8.  У компанії завжди є ризик морального застаріння, крадіжки та
пошкодження продукції.
9.  Великі Японські виробничі компанії практикують укладення
контрактів з зовнішніми організаціями на постачання певних
матеріалів і зазвичай мають розгалуженні мережі малих
субпідрядників. Якщо хоча б один з них не доставить складові
частини вчасно, виробничий процес буде зірвано.
10. Однією з переваг великих виробничих потужностей є те, що середні
постійні витрати на одиницю продукції зменшуються завдяки росту
обсягу виробництва, тому що кожна наступна одиниця продукції
частково покриває постійні витрати, забезпечуючи економію,
зумовлену зростанням масштабу виробництва.