COMPANIES: HISTORY&STRUCTURE

1.What is business?
Traditionally, business simply meant exchange or trade for things people wanted or needed.
Today it has a more technical definition. One definition of business is the production, distribution,
and sale of goods and services for a profit.

First, production is the creation of goods and services or the changing of raw materials
into products (conversion of iron into metal car parts). Next these products need to be moved
from the factory to the marketplace. This is known as distribution. A car might be moved from a
factory, say, in Detroit to a car dealership in Miami.
Third is the sale of goods and services. Sale is the exchange of a product or service for
money. ( exmp. A car is sold to someone in exchange for money). Goods are products which
people either need or want (for example, cars can be classified as goods). Services are activities
which a person or group performs for another person or organization. (For instance, an auto
mechanic performs a service when he repairs a car. A doctor also performs a service by taking care
of people when they are sick).
There are quite a lot of other factors to be taken into account: (proper structure of a company,
hiring a suitable workforce, keeping a close check on prices and customer credit and so on).
However, there is one other important factor. This factor is the creation of profit or economic
surplus. A major goal in the functioning of any company is making a profit. Profit is the money
that remains after all the expenses are paid. Creating an economic surplus or profit is a
primary goal of business activity. So, business is the production, buying, and selling of goods and
services.

2.What is hierarchy of a company?

Hierarchy is any system in which people or groups are ranked one above the other
according to status or authority. Most companies are made up of groups of people: the
shareholders (who provide the capital), the management and the workforce. The management
structure of a typical company is shown in this organization chart.
At the top of the company hierarchy is the Board of Directors, headed by the Chairperson or
President. The Board is responsible for policy decisions and strategy. It will usually appoint a
Managing Director or Chief Executive Officer, who has overall responsibility for the running of
the business. Senior managers or company officers head the various departments within the
company, which may include the following:
-Marketing
-Public relations (PR)
-Information and Technology (IT)
-Personnel or Human Resources (HR)
-Finance
-Production
-Research and Development (RD)
 3.Name the main company departments and characterize their functions.

Department refers to a specific division within the organisation that is responsible for a
particular function. There are the most common types of company departments such as:
• The production department is responsible for contacts with suppliers. Also it is responsible for
the manufacturing of company’s products and for trying to find ways of improving quality.
• The marketing department is in charge of advertising, analyzinig the market and identifying
customers’ needs.
• Research and Development Department creates new product. It works with the latest
innovations in the field of electronics. Also this department works in close contact with
Marketing and Production departments.
• Finance Department records transactions, collects cash, makes payments, and calculates costs. It
is concerned with everyday running of the money of the company.
• Personnel or Human Resources Department deals with personnel matters.

4.What's empowerment? Give examples. (Расширение способностей)

The process of giving a group of people more freedom or rights:

-This approach to management emphasizes the empowerment of workers to make decisions.
-The government's economic empowerment program aims to create jobs and raise living standards
in the poorer communities.
Examples:
Empowered employees are involved in decision-making
It can be challenging for workers to feel their abilities are valued and their input is being if
their voices are not being heard. They know market, products, customers, and partners of company
better than anyone. Including them in decision-making not only fosters employee empowerment,
but is also necessary for success. Having transparent communication with team members and
making them part of the decision-making process is fundamental to giving them the opportunity to
advocate for their ideas.

5.What do companies do to make their young recruits feel committed to the

company?
Encouragement and assistance in developing new skills that will help in the work of the company.

Пример из учебника:

Worker (employee) during his first year worked on various projects throughout the group,
including a review of foreign currency transactions and warehouse redesign with the aim of
improving efficiency. In year two he became an inventory controller for the engine and cooling cell.
While he was working in this role he was involved in introducing new ordering procedures. In his
third year he became a principal 1 engineer in new business development. Person worked with
existing and potential suppliers on manufacturing processes to improve quality.
He also had the unique opportunity of spending a year in Japan to learn all aspects of Japanese
manufacturing and culture. This was a joint project between the Department of Trade and Industry
and the Japanese External Trade Association. Before going to Daihatsu near Osaka he had followed
a twelve-week full-time course to learn Japanese. In return for Unipart's investment in him they'll
have an employee with experience of the latest manufacturing management methods and
technology - and who is fluent in Japanese. The challenge is to match these experiences to the
right area of business at Unipart International.

Пример интернет:
Offer opportunities for growth

“Make it clear from the outset that you train your team and are invested in career development at
your company. Let younger hires know they’ll be trusted to lead projects from day one. Many
graduates are eager to start working and build their careers quickly; they want to know you'll help
them progress.”

6.Characterize any Russian company (structure, activities, markets etc.)*.

ПИК-PIK (Public Joint Stock Company)

One of the leading Russian developers and construction companies.The main construction
business is concentrated in 5 companies: DSK - 2, Pik - Region, Pik - Development, DSK - 3,
Inteco. The company carries out development activities in 14 regions of its presence. The
headquarters is in Moscow.
Structure. The company is divided into three
levels: strategic, management and operational. The
strategic committee includes the Board of
Directors, the Audit and Risk Committee, the
Strategy Committee, the Sustainable Development
Committee, the HR and Remuneration Committee
and the Investor Relations and Corporate
Communications Committee.
The management level includes executive bodies.
The operational level includes structural divisions
and subsidiaries.

EMPLOYMENT&RECRUITMENT

1.What does "employment" mean? What is headhunting?

Employment is the fact of someone being paid to work for a company or organization.
Employment definition is termed as a paid mutual work arrangement between a recruiter and an
employee. This term applies to an individual who is hired for a salary or compensation to initiate
work or tasks for an organization.
 Headhunting is finding someone who has the qualifications for an important job and is willing to
leave their present job
A company may recruit employees directly or use outside recruiters, recruitment agencies or
employment agencies. Outside specialists called headhunters may be called on to headhunt people
for very important jobs, persuading them to leave the organizations they already work for. This
process is called headhunting.

2.How can people find a new job? How do people apply for a job?

You can look in the situations vacant pages of local newspaper, where a local company/firm/
organisation was advertising for position. After that you can apply for the job by completing an
application form and sending it in. After that make an application, sending your CV (curriculum
vitae - the 'story' of his working life) and a covering letter explaining why you want the job and
why you are the right person for it.
Next step is selection procedure. Each company follows their own steps of selection
procedure. One variant of it can look like:
-Recruiters looks at the backgrounds of applicants: their experience of different jobs and their
educational qualifications. They don't ask for handwritten letters of application as people usually
apply by email;
-Inviting the most interesting candidates to a group discussion. Then they have individual
interviews with each candidate. Recruiters also ask the candidates to do written psychometric tests
to assess their intelligence and personality.
-After this, company shortlist three or four candidates. It checks their references by writing to their
referees: previous employers or teachers that candidates have named in their applications. If the
references are OK, company asks the candidates to come back for more interviews. Finally,
company offers the job to someone, and if they turn it down it has to think again. If they accept it,
company hires them.

apply
candidates
advertisement

o ers attend invites

accepts

These days, many applicants submit their CV speculatively to companies they would like to
work for. In other words, they do not apply for an advertised job, but hope the employer will be
interested enough to keep their CV on file and contact them when they have a vacancy. When
replying to an advertisement, candidates often fill in an application form and write a covering
letter. The employer will then invite the best candidates to attend an interview. Sometimes
candidates will take a psychometric test before the interview to assess their mental ability and
reasoning skills. These days, it is normal for successful candidates to have to work a probationary
period. This is usually three or six months; after that, they are offered a permanent post.
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3. In what cases do people leave their job?

4.What is downsizing and delayering?

To downsize-to reduce the number of employees in an organisation. Syn. to lay off which means a
downsized company becomes leaner. (Сократить число работников компании)
To delay-to reduce the number of management layers in the company hierarchy. Example is a
delayered company becomes flatter. (Сократить уровни (в структуре) компании)
For example, one company (Modco) has downsized and delayered. The numbers of management
levels in the company hierarchy has been reduced from five to three, and many managers have lost
their jobs. Modco has restructed and reorganised in order to become flatter (with fewer layers of
management) and leaner (with fewer more productive employees).
They did this to reduce costs, and increase efficiency and profits. Employees said the
word ,restructure’.

5.What is outsourcing? What is off-shoring? (advantages & disadvantages)

6.Who can be called a freelancer?

7.Characterize a good candidate for a job.

These words are often used in job advertisements. Companies look for people who are:

• self-starters, proactive, self-motivated, or self-driven: good at working on their own.

• methodical, systematic and organized: can work in a planned, orderly way.
• computer-literate: good with computers.
• numerate: good with numbers.
• motivated: very keen to do well in their job.
• talented: naturally very good at what they do.
• team players: people who work well with other people.

8.Say a few words about a CV, a cover letter, references, outplacement advice.

9.Compare a flexible and rigid labour market. What are their advantages and
disadvantages? Which one would you prefer to work for and why?

(Гибкий- иметь способность организации реагировать на изменения внешней среды

изменениями в численности работников, объеме выработки, формах занятости. оплаты труда
и т. n.)

The US is often described as having a flexible job market with flexible working. Here
companies hire and fire employees easily. When telling people they are no longer required,
companies only have to give them very short notice - warning - and relatively small redundancy
payments - money to compensate for losing a job. Unemployment benefits are very low. These
measures are said to make for a flexible job market and encourage job creation. Critics say that this
approach leads to job insecurity, as employers are able to get rid of employees too easily.
 France, on the other hand, has a very different approach. If employees are made redundant,
they receive generous redundancy payments and then unemployment benefits. The government
believes people need this sort of job protection, and trade unions are fighting hard to keep it.
Payments to employees such as sick pay and parental leave are also very generous. Mothers get
long paid maternity leave. But the social charges which the employers and employees have to pay
the government are very high. Critics say that these policies contribute to a rigid labour market.
This sort of inflexibility discourages job creation and leads to higher unemployment and slower
economic growth.

10. What do you know about the activities of the International Labour Organization?

The International Labour Organization (ILO) is a United Nations agency. Its mandate is to
advance social and economic justice by setting international labour standards. ILO has 187 state
members. The agency has adopted 189 conventions and guidelines that support social protection
for employees. Among the conventions adopted there are eight core ones, which are classified as
fundamental.
The field of the International Labour Law and Employment Law is developing rapidly and
changing to fit the needs of increasing global business. While International Law applies only
between entities that can claim international personality, national law is the internal law of states
that regulates the conduct of individuals and other legal entities within their jurisdiction. When the
labour legislation or practice of a country has reached a certain level, it may be desirable for the a
country to ratify a Convention that provides for a standard corresponding to the existing
national situation. In International Labour Law, there are many conventions based on the notion of
social justice and designed to create international obligations for the states that ratify them.

Convention.