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BASIC CONCEPTS OF MANAGEMENT

- 2002

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.. BASIC CONCEPTS OF MANAGEMENT: . - . : -, 2002. - 80 .

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This text-book is designed for students who want to combine general English study with career-specific communication managements skills. It is uniquely based on the original material and seeks to meet a graded understanding of both management procedures and the ability to communicate successfully utilizing some of the newly acquired expressions and vocabulary on management in an oral and writing practice. Specific exercises which follow successively the text are assigned to improve written and oral communication skills, to expand vocabulary significantly and to develop critical reading skills. : , ..

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I. WHAT IS MANAGEMENT: DEFEINITION AND OVERVIEW

Although there have been always good managers, management has been studied scientifically mainly by academics and practitioners since the beginning of the 20th century. It is not accidental that this growing interest in the understanding of management has been nurtured by and in turn benefited the rising industrialism that has so changed and characterized the modern world. Management, as defined in the dictionary, it is the act, art, or manner of managing, or handling, controlling, directing, etc.; skill in managing; executive ability. A modern manager might characterize it more as the accomplishment of an organization's goals by the defining of goals, organization of work, motivation of others, staffing of the positions, the control of the labor, material, and evaluation of the completed effort. Managers are managers because of what they do the task of this booklet is to describe and analyze functions of management so the reader will be able to describe the tasks of the modern executive in any sphere. Unfortunately in management, it is difficult to find standard definitions for many commonly used terms, yet a common vocabulary and a common understanding are vital to successful communication. As we go along in this booklet, we are going to develop a common vocabulary for managers, a vocabulary understood and agreed upon by most in the management field. Perhaps the most important place to start is with an understanding of what management is. You will find many different definitions in various texts, all usually variations of the same themes. Over time, there has been and continues to be a shift in emphasis within the definitions. Let us think about this evolution for a minute by looking at two definitions. In 1980, the President of the American Management Association (AMA) used this definition of management: Management is getting things done through other people. Now look at a current definition: Management is working with and through other people to accomplish the objectives of both the organization and its members. What are the differences between the two? There are three key differences that should be highlighted. The more recent definition: 1. places greater emphasis on the human being in the organization; 2. focuses attention on the results to be accomplished, on objectives, rather than just things or activities; 3. adds the concept that accomplishment of the members personal objectives should be integrated with the accomplishment of organizational objectives. In looking at the current definition, we come to the conclusion that management is both a science and art. We also have to view the manager as an individual, to distinguish between the role as a manager and the role as a technician, following a vocational field. And when a person is a manager, he or she is doing the same thing no matter at what level in an organization. Every manager plans, organizes, staffs, coordinates, motivates, leads, and controls. Planning is probably the most important activity in the managers life. The manager may ask, What is the objective of all my actions? In the planning processes, it is very important to establish an objective in order to get a team together, determine duties and tasks, and begin the

process of delegation. Only with established objectives can a manager effectively control and subsequently evaluate performance. Many skills are required to master the challenging nature of managerial work to meet the changing trends in management. The most important skills and competencies are those that allow managers to assist others in becoming more effective and productive in their work. We can classify the critical skills of managers into three categories: technical (or operational), human, and conceptual. Although all three skills are essential for managers, their relative importance tends to vary by level of managerial responsibility. If we view the levels of managerial responsibility in the form of a diagram: Level of Management Essential Managerial skills Top Vice president and higher Conceptual (the ability to think conceptually and solve complex problems with longer term consequences for the enterprise Middle Managing other managers or supervisors Human (the ability to work well with others with intermediate-term consequences First First level of supervision Technical (the ability to apply expertise and perform a special task(s) with proficiency with shorter term consequences What are the personal competencies for managerial success: 1. Leadership ability to influence others to perform tasks; 2. Self-objectivity ability to evaluate oneself realistically; 3. Analytical thinking ability to interpret and explain patterns in information; 4. Behavioral flexibility ability to modify personal behavior to reach a goal; 5. Oral communications ability to express ideas clearly in oral presentations; 6. Written communication ability to express ones ideas clearly in writing; 7. Personal impact ability to create a good impression and instill confidence; 8. Resistance to stress ability to perform under stressful conditions; Tolerance for uncertainty ability to perform in ambiguous situations;

Notes: to nurture to help to develop, to take care for and encourage the growth of sb/sth: to nurture a friendship, a talent, a new project; to instill - to cause somebody gradually to acquire a usually desirable quality: instilling a sense of responsibility in/into ones children;

Terms for study: accountability - ( - ; ) authority - ( , ; ) delegation - ( - ) management - 1. ; ; 2. ; ; to carry out management - to take over management - management activities - management competencies - new conditions of economic management - economic management restructuring - effective economic management - methods of management, methods of managing - administrative methods of managing - - management bodies - steering, central management bodies restructuring of the steering foreign economic bodies - appropriate managing body management system - to update the entire management system - management based on economic incentives - , competency or competence - with competence - to be beyond competence - to be within, to fall under, to fall within, to come within competence - management functions responsibility - ( ; ) skill of managers - technical skill - (, ; , - ) human skill- ( , ; )

conceptual skill - (, , ; , )

KEY TERMS: (are to be learned by heart) Management is working with and through other people to accomplish the objectives of both the organization and its members; Management activities include planning, organizing, staffing, coordinating, motivating, leading, and controlling; getting results effectively through other people by process of delegation; Technical activities the specialist functions of an individual, or those that derive from his/her vocational field; Responsibility the duty or task to be performed; Authority the power to act for someone else; Accountability the obligation to be held responsible for what was expected or what happened that was unexpected Exercise 1. Read the following explanation of two synonyms with the meaning = to help something to develop and then translate what follows paying attention to the Russian equivalents: 1. To nurture to spend a lot of time and effort thinking about and helping a plan, idea or feeling to develop; To foster to help a skill, feeling, idea etc to grow and develop over a period of time; Translate the following: The President has nurtured the idea of nuclear arms reduction for at least seven years. During those long years in the refugee camp, deep grievances were nurtured. 3. The classroom activities are intended to foster childrens language skills. 4. It had been the governments policy to foster close ties with neighboring states. 5. As a record company director, his job is to nurture young talent. 6. The group wants to nurture democracy in some African countries. 7. She wants to stay at home and nature her children, not go out to work. 8. Winifred nurtured ambitions for her daughter to be a surgeon. 9. They were discussing the best way to foster democracy and prosperity in the world. 10. Im trying to foster an interest in classical music in my students. 11. European Union is an ideal that has been nurtured since the post-war years. 12. These sessions are designed to foster better working relationships.

Exercise 2. Read the note about the term management taken from the Oxford dictionary of economics and translate it into Russian: 1. Management the decision-making role in organizations. If things are going smoothly, there is not much for management to do, but if things go wrong or new opportunities arise, somebody has to decide on hiring and firing workers, investing in new machines or scrapping old ones, marketing new products and dropping old ones, and how to raise the necessary finance. The role of management is to take these decisions. 2. The people who do the managing. This may involve a hierarchy, with junior, branch, or assistant managers exercising limited discretion, and the Managing Director as the overall boss of an organization, laying down general lines of policy, and hiring and firing assistant managerial staff to carry out the decisions. Exercise 3. Give the Russian equivalents to go with the word management (=people): a) Junior, middle, senior, top management; b) To be under new management, change of management, a management team; Exercise 4. Give the Russian equivalents to go with the word management (=control): a) Aggressive, brilliant, careful, day-to-day, inefficient, efficient, general, inspired, intelligent, poor, skilled, sound, strategic, strong, weak Exercise 5. Find in the text words and expressions close on meaning to the following: happening by chance; in a way that is large or important enough to have an effect on sth or to be noticed; animation, action; essential distinction; interest, inspiration, motive, incentive, reason, stimulus; aim, purpose, target; to accent, to accentuate, to bring to the fore, to emphasize; development, growth, progress, progression, maturation; accomplishment, achievement Exercise 6. Answer the questions following the basics of the text: What is management? How does the 1980 definition of management differ from the current definition? What is the difference between management activities and technical activities? What should happen as a manager moves up in an organization in terms of management activities vs. technical activities? How would you explain the process of delegation to a new manager? Exercise 7. Fill in the blanks with the corresponding italicized words or word combinations, insert the corresponding prepositions when necessary: (Management, current, management activities, to increase, to decrease, the process of delegation) ... is working with and through other people to accomplish the objectives of both the organization and its members. The ... definition places greater emphasis ... the human element in the organization; focuses on the results to be accomplished, i.e., objectives rather than activities; and adds the concept that the accomplishment of members' personal objectives should be integrated with the accomplishment of organizational objectives. 7

... are those activities that involve getting results effectively through others by the process of delegation. Technical activities are the special function of an individual following a vocational field. As management activities and demands ... , involvement in technical (or vocational) activities should ... . To understand ... (i.e., managing by getting results effectively through the others), one must understand the concepts of responsibility, authority, and accountability. Although a manager cannot delegate ultimate responsibility, he/she can delegate authority. It is through the combination of sharing responsibility through assignment and delegating authority that a manager can hold other levels accountable for getting things done. Exercise 8. Give English equivalents using the active vocabulary and the Economic Dictionary: management , , , , , , , , , , , , - , , , , , , , , , steering, central management bodies - , , , , ; , Exercise 9. Lets explore a wide aspect of the idea of the word management which expresses a different idea, make up sentences with each meaning under consideration. Each line starts with the keyword: management - conduct of affairs, running, handling commission - managership, agency authority - care, charge, control surveillance - superintendence, oversight skill - art of management business management - work study, management study, time and motion study *adhocracy policy - organization, masterminding, decision-making, housekeeping, husbandry, economics, political economy, statesmanship government governance - menage, regime law-making legislation - regulation command -direction, responsibility, control, directorship captaincy superiority - dictatorship, leadership, premier-ship, chairmanship * A special subject appears as need arises, for present purposes; , , , ; ad hoc - .

Exercise 10. Translate the following using a dictionary if necessary: 1. , , , . 2. . 3. -, . 4. - , , . 5. , . 6. . 7. . . Exercise 11. Supply objects to go with the following verbs: to develop, to sign, to think about, to come to, to distinguish, to do, to plan, to coordinate, to motivate, to lead, to control, to establish, to get together, to begin, to evaluate, to supervise, to demand, to master, to challenge, to assist, to relate, to perform, to modify, to express clearly, to create, to get, to delegate, to share, to assign, to be accountable for Exercise 12. Make up a consistent presentation using the following connectors at your option from (first of all, furthermore, likewise, because of this, as a result, what's more, for example, last but not least, accordingly, consequently, better still, all in all) on the topics: The definition of management and the managerial role, management activities vs. technical activities. Management skills and competencies, personal competencies for managerial success. What kind of education offers the best route to top management positions in your country? The personal competencies for managerial success.

MANAGEMENT DECISION- MAKING: TYPES, LEVELS, STYLES

1. WAYS OF THINKING ABOUT BUSINESS DECISION-MAKING Analysis of the managerial function reveals that virtually every manager, no matter what his or her official title, makes decisions during the course of business. This points to decisionmaking as the common function of managers, and some writers have used the term "decisionmaker" in place of manager. The decision-making process is the sequence of events taken by management to solve business problems, a systematic process that follows a sequence of problem identification, alternative solution generation, consequences analysis, solution selection and implementation, evaluation, and feedback. We must clarify the ways in which management thinks about decisions, the general types of decisions, preferred styles of decision-making, the organizational levels at which the various kinds of business decisions are made, and the conditions that influence managerial decision-making. Linear thinking As contemporary business has become more complex. There has been a growing consensus that effective decision-making must take the complex nature of business into account. The most simplistic approach, however, to the solution of business problems exemplifies linear thinking. This assumes that each problem has a single solution, the solution will only affect the problem area, not the rest of the organization, and, once implemented, a solution will remain valid and should be evaluated only for how well it solves the problem. Although there is allure for managers in the very simplicity of a linear thinking solution, it often does not prove an effective way of the sequence of events. In the rapidly changing environments of modern business. There are at least three major difficulties with this approach to problemsolving. Since the solution affects not only the problem area but also the rest of the organization, the results of the solution may not be anticipated. Parts of the organization nor considered in the original problem-solving efforts may be effected by the solution and react in unanticipated ways. A manager may get more than was originally bargained for. Even if the results of a solution are only those desired and intended, the focus on a single problem area ignores the interrelationships among organizational elements and may lead to a simplistic solution that does not solve the larger problem. Linear thinking assumes that problems, once defined, and solutions, once implemented, are always valid and ignores the rapidly changing nature of the environments of business. Such difficulties have lead many business thinkers and practitioners to take a different approach to business decision-making. This new approach is called systems thinking.

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Systems thinking Systems thinking is a more contemporary and encompassing approach to problemsolving that assumes that problems are complex and related to a situation, that solutions not only solve the problem but will also impact on the rest of the organization and should be evaluated on how well they solve the problem (intended results) and effect the total organization(unintended results), and further, that neither problems nor solutions remain constant - situations change, problems evolve , and new solution are constantly necessary. A system thinking approach does not view problems as discrete but sees them as related to all aspects of an organization. Organizations are composed of interrelated systems and processes, and any change in one organizational aspects affects all others. A system thinker would therefore consider the interrelationships among systems and processes of the organization before implementing a solution. That solution will be evaluated on the basis of all results produced, as cited earlier. Further, there is the recognition that not only do circumstances change, requiring new solutions. But solutions themselves also function to change circumstances. It is therefore necessary, after implementing any solution, to evaluate the effect of that solution and provide feedback to the organization as it begins anew the problem-solving process. Problem-solving is therefore a dynamic process as new solutions create new realities and those new circumstances require new solutions. You should remember: Linear thinking stresses that problems have only one solution and do not affect the rest of the organization, and, once a solution is found, that it remains constantly valid. Systems thinking, however, asserts that problems are complex, have more than one cause and more than one solution , and are interrelated to the rest of the organization. The solution selection process under systems thinking features an evaluation of the effects of any solution on the whole organization, not just the problem area. Systems thinking also maintains that problems and their subsequent solutions are not constant, but constantly changing. But must be continually reexamined - problem-solving process. Notes: anew (adverb literary) - 1. to start life anew to begin a different job, start to live in a different place etc., especially after a difficult period in your life: She resolved to start life anew in Ireland; 2. if you do something anew, you start doing it again; to encompass - 1. to include a wide range of ideas, subjects, etc.: The study encompasses social, political, and economic aspects of the situation; 2. to completely cover or surround something: The houses encompassed about one hundred square meters ; to interrelate - if two things interrelate or you interrelate them, they are connected and have an effect on each other: a model interrelating population, capital and natural resources; allure - attraction; charm: the allure of fame/foreign travel;

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Terms for study: decision-making process - feedback - 1. 2. ; linear thinking - ( , , , ) non-programmed decision - operational decision - systems thinking - solution - alternative solution - basic solution - complete solution - complex solution - compromise solution - equilibrium solution - feasible solution - ; final solution - general solution - initial solution - near optimal solution - possible solution - probabilistic solution - reasonable, sensible solution - trial solution - trial-and-error solution - viable solution - to arrive at a solution , to find a solution - to achieve solution of a problem - to offer a solution - approach - ( , ), alternate approach - analytical approach - one-sided approach - positive approach - practical approach - priority approach - statistical approach - systems approach - step-by-step approach - worst-case approach - integrated approach - unified approach -

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KEY TERMS: Decision-making process the sequence of events taken by management to solve managerial problems, a systematic process that follows a sequence of problem identification, alternative solution generation, consequences analysis, solution selection and implementation, evaluation, and feedback. Linear thinking a simplistic approach to problem-solving that assumes that each problem has a single solution, the solution will only affect the problem, not the rest of the organization, and, once implemented, a solution will remain valid and should be evaluated only on how well it solves the problem. Systems thinking a more contemporary and complex approach to problem solving that assumes that problem are complex and related to a situation and solutions not only solve the problem but will also impact the rest of the organization and should be evaluated for how well they solve the problem (intended results); further assumes that neither problems nor solutions remain constant - situations change, problems change, and new solutions are constantly necessary. Exercise 1. Give Russian equivalents for the word combinations to go with the word approach: to adopt, to attempt, to change, to cling to, to choose, to decide on, to employ, to favour, to follow, to have, to make, to modify, to pursue, to recognize, to reject, to settle for, to show, to take, to try, to use, to welcome; aggressive, balanced, basic, belligerent, bold, broad, broad-based, brutal, careful, careless, cautious, clear, concentrated, (un)constructive, cool, coordinated, crude, determined, (in)direct, dispassionate, doctrinaire, energetic, firm, flexible, logical, low-key, mature, measured, neutral, novel, partisan, positive, pragmatic, realistic, (un)reasonable, resolute, revolutionary, rigid, rigorous, scholarly, scientific, sensitive, slapdash, soft, tentative, timid, traditional, (un)usual, useful, useless, vigorous Exercise 2. Study the explanation of the list of the synonyms to the meaning = to include or deal with two or more subjects, areas, periods etc at the same time and then translate what follows paying attention to the Russian equivalents: to cover - to include something; to deal with or to apply to; to direct attention to; to encompass - a formal word meaning to include or deal with a very wide range of ideas, subjects, etc; to embrace - if a word or way of describing something embraces several things they are included within its meaning; to span - if a book, film, plan etc spans a period of time it includes everything within the period; Translate the following: 1. The Certificate course lasts two years and covers seven basic subjects. 2. The new law has been designed to cover all incidents of fraud. 3. The telephone directory doesnt cover addresses

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outside the city. 4. The report covers the whole conference of the management staff. 5. The exams only a month away and we havent even covered the whole course, never mind started revising. 6. The new regulations cover precisely where and when peaceful marches can take place. 7. The general need for consumer protection is encompassed in Section 5. 8. The festival is to encompass everything from music, theater and ballet to literature, cinema and visual arts. 9. The EU proposed the creation of a free trade zone encompassing the entire Western hemisphere. 10. There were warnings that this problem was going to be huge and allencompassing (=involving everything). 11. The word culture embraces both artistic and sociological aspects of a society. 12. Were trying to develop an all-embracing policy which tackles every aspect of education. 13. Heimat is a vivid social drama spanning sixty years in the life of one small village. 14. The essay spans a period of over 600 years, from about 1900 BC. 15. Her knowledge spans the whole political history of England. Exercise 3. Explain the meaning of the following words and phrases in English: trial-and-error solution; decision-maker; simplistic approach; a sequence of problem identification; to focus on a single approach; a growing consensus; to exemplify linear thinking; one-sided approach; alternative solution generation; compromise solution; systems approach; to anticipate something; priority approach; linear thinking; allure; the interrelationships among organizational elements Exercise 4. Give the English equivalents from the text to the following: ; () ; ; ; ; , ; ; ; ; ; , ; ; ; ; ; ; ; Exercise 5. Bear in mind the information below then give English/Russian equivalents using the dictionary if necessary: To evaluate , 2. , ; , ..: to evaluate the full significance - ; to evaluate a new antibiotic - ; to evaluate arguments - ; 3. . ; : to evaluate the altitude of a plane - ; to evaluate performance, project, requirements, risk, stock, information, data, invention, policy, proposal, operations, feasibility

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 ; ; ; ; ; ; ; ; ) 1. Its impossible to evaluate these results without knowing more about the research methods employed. 2. Banks have been advised to pay more attention to personal circumstances when evaluating loans to private customers. 3. We shall need to evaluate how the new material stands up to wear and tear. 4. Our research attempts to evaluate the effectiveness of the different chemicals. 5. We need to evaluate how well the policy is working. 6.chool has only been open for six months, so its hard to evaluate its success. TYPES OF MANAGERIAL DECISIONS Whether a manager takes a linear thinking or systems thinking approach to business problems, there are two major kinds of problems confronted, and the nature of the problems will influence the methods applied to reach satisfactory solutions. These are programmed and nonprogrammed decisions. Programmed decisions Programmed decisions characterize those problems that are well understood, highly structured, routine, and, repetitive and that lend themselves to systematic procedures and rules. Each time one of these decisions is made similar to every other time. The checking out of a book from library or the processing of a hospital insurance claim are examples of programmed decisions because they are repetitive and routine. Much effort may have gone into the solving of these problems the first time they were encountered in the enterprise. As they were solved for the fist time, there was probably thought given to how the solutions could be routinized. When a process is produced that will give an acceptable result each time, management has created an algorithm, a mathematical concept applied to management. An algorithm is "repetitive calculation", in this instance a repetitive process by which an acceptable solution will always be found. Once implemented, such solution-generating processes become SOP - standard operating procedures. Programmed decisions, since they are well structured and understood, may lend themselves to linear thinking, but this will only be so if the programmed decisions are simple problems. A programmed decision, however routine and well understood, may be quite complex and require a true systems approach when first encountered. This implies that a systems approach will be necessary the first time the problem is solved, but the result of this problem-solving approach will be an algorithmic solution that can then be applied every time the same problem recurs. Non-programmed decisions Non-programmed decisions are those problems that are not well understood, not highly structured, tend to be unique, and do not lend themselves to routine or systematic procedures. The key to understanding these decisions is to remember that they happen infrequently, and because they happen so rarely, there is little precedent for decision-making. A merger is an

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example of the kind of event that requires management decision-making and happens so rarely that neither standardized nor routine decisions are available. Management will make use of data from past problems and performance, examining historical analogy - how others in the past have solved similar problems. Managers look for principals and solutions that may apply in the current situation but must be ever mindful that past solutions and problem-solving methodologies may not apply now. Managers, particularly at higher organizational levels, make many non-programmed decisions during the course of defining the goals of the enterprise and running its daily activities. Because non-programmed decisions are so important to business and so common to the managerial position, a manager's effectiveness and future promise to the business will often be judged according to the quality of his or her decision-making. One of the most popular ways of developing analytic abilities and managerial decisionmaking is the case study. The case study is a written history of a business problem and the manner in which management solved it. A good case study does not pretend to teach a unique solution, although it may be valuable to see how that solution worked in a specific solution. The greatest benefit to be derived from a case study is to learn how a decision was made and a solution selected. The decision-making methodology can then be applied to other problems. You should remember: A programmed decision can be applied when the problem is routine, well structured and understood, and repetitive. A non-programmed decision can best be used when the problem is not well structured or understood and is neither routine nor repetitive. Notes: merger - act of joining together especially two commercial companies: the merger between two breweries; The two companies are considering merger as a possibility.

KEY TERMS: Programmed decisions those problems that are well understood, highly structured, routine, and repetitive and that lend themselves to systematic procedures and rules. Non-programmed decisions those problems that are not well understood, not highly structured, tend to be unique, and do not lend themselves to routine or systematic procedures.

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Terms for study: administrative decision - insurance claim - algorithm - ( ) anticipatory mode - brainstorming - " ", ; case study - ; ; certainty -, performance standards - pilot testing - managerial - ; managerial position - () management problem - to alleviate, to simplify a problem - , to anticipate, to foresee a problem - to avoid problems - to bring up a problem - to cause a problem - to cope with problems - to solve, to resolve problem - to deal with a problem, to tackle a problem - , to encounter a problem, to run into a problem - , to experience, to face a problem - , to finalize a problem - to overcome a problem - to outline a problem - to prevent a problem - to get a problem off the ground - programmed decision - reactive mode - risk - , , strategic decision - systems thinking - systems approach - uncertainty - 1. 2. , standard operating procedures - manager's effectiveness -

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Exercise 1. Give Russian equivalents for the word combinations to go with the word process : to accelerate, to adopt, to apply, to arrest, to check, to complete, to control, to develop, to employ, to encourage, to evaluate, to examine, to facilitate, to favor, to follow, to further, to go through, to halt, to hasten, to help, to hold back, to improve, to initiate, to instigate, to interrupt, to introduce, to invent, to investigate, to keep track of, to master, to modify, to monitor, to observe, to obstruct, to plan, to prevent, to regulate, to reverse, to set process in motion, to slow down, to speed up, to start, to stop, to streamline, to study, to supervise, to suspend, to take part in, to test, to trigger, to try (out), to use process process came to an end/halt, continues, gathered momentum, intensified, spread, worked active , awkward, basic, beneficial complicated, cumbersome, cumulative, dangerous, daunting, decision-making, destructive, distinct, divisive, doubtful, effective, elaborate, elaborate, essential, frustrating, gradual, harmful, inevitable, inexorable, ingenious, insidious, irritating, laborious, lengthy, long-drawn-out, natural, nerve-racking, noticeable, original, painful, perceptible, rapid, reliable, risky, salutary, slow, steady, step-by-step, swift, tiresome, tricky, valuable, wasteful, whole process Exercise 2. Give English equivalents: ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; , ; , ; Exercise 3. Read the notes, give the Russian equivalent to each explanation. Translate what follows choosing the right Russian equivalent: Process - a series of actions or tasks performed in order to do, make or achieve sth: to begin the difficult/gradual process of reforming the educational system; - a series of changes, especially ones that happen naturally: the digestive processes, a normal part of the ageing process; - a method of doing or making sth, especially one used in industry: the processes used in cement production; - ( Law) a legal action, case suit, trial; Translate the following: 1. Coal was formed out of dead forests by a slow process of chemical change. 2. Teaching him to read was a slow process. 3. The identity of the dead man was established by a process of elimination. 4. The company is in the process of moving to new offices( to be in the process of doing sth/ be in process). 5 New guidelines are in process. 6. Teaching him to walk again

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was a long and painful process, luckily he began the slow process of recovery. 7. Were still in the process of selling our house. 8. We have now a real opportunity to advance the peace process. 9. The company has developed a new fruit preservation process. 10. What process do you use to dry the paint so quickly? 11. Cotton goes through several processes when being made into cloth. 12 .Going to court to obtain compensation can be a long and painful process. Exercise 4. Match the two columns of word combinations with the word process. Make up sentences them: to be in the process 1. to develop a process 2. to evaluate a process 3. to implement a process 4. to license a process 5. to master a process 6. to operate a process 7. to patent a process 8. to practice a process 9. to work out a process 10. Exercise 5. Give Russian/English equivalents of the following as quick as possible: " ", to develop analytic abilities systematic procedures and rules, , to select a solution the key to understanding, at higher organizational levels, , to apply a decision-making methodology to define a goal, , standard operating procedures the case study, Exercise 6. Translate the following text in English using the word combinations below: ordinary, common shares - e to impose , to lay a tax - acquisition of shares - consolidation - pure assets - horizontal merger - vertical-backwards merger - vertical-forward - conglomerate - amendment - expedience - subversion of the competition - institution of antitrust case(proceedings) -

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C - , , . , . : - ; - , ; - ; . , . 1950 . * 1914 . , . . * 1914 / Clayton Act of 1914 - Sherman Antitrust Act , . , , , , , . . , injunction , New Democracy New Liberty. Exercise 7. On the base of the text below and the text taken from exercise 6 make up a consistent presentation on the topic Merger and its place in the world economy: Merger - a combination of two or more firms into a single new firm. This takes over all the assets and liabilities of the merging firms; shares in the new firm are divided between the shareholders of the original firms on an agreed basis. Merger procedures in the UK are subject to* the City Code on Takeovers and Mergers. A merger may allow economies of scale or scope between the firms which should lead to gains in efficiency. It may however also reduce competition, so that mergers in the UK may be referred to the *Monopolies and Merger Commission (MMC). A US Act of 1914 extending federal antitrust law forbade price discrimination, tying arrangements and exclusive dealing, and the acquisition of another corporations stock where this led to monopoly or decreased competition. The Act allowed triple damages to those injured by breaches of antitrust law. Labor unions and agricultural associations were exempted from antitrust actions.

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* the City Code on Takeovers and Mergers - *Monopolies and Merger Commission (MMC) - , , , . 1948 (Monopolies and Restrictive Practices Commission). Exercise 8. Expand on the following topic keeping close to the text How do programmed and non-programmed decisions differ? Exercise 9. Fill in the gaps and give the Russian translation of the following: (Programmed decisions, non-programmed decisions) are those problems that are well understood, highly structured, routine, and repetitive and that lend themselves to systematic procedures and rules. , however, are those problems that are not well understood and not highly structured, tend to be unique, and do not lend themselves to routine or systematic procedures. 3. LEVELS OF DECISION-MAKING IN AN ORAGANIZATION Just as there are different kinds of business decision-making, there are different levels of decision-making within a business. These are the strategic, administrative, and operational levels of decision- making in an organization. Strategic decisions are those that determine the goals of the entire organization , its purpose and direction. It should be noted that the strategic decision-making function is largely the task of top management. Top Management has the "big picture" of all elements of a complex enterprise, and it must be able to integrate all aspects of a business into a coherent whole. The decisions made at this level also determine how the business will relate to external environments. Because strategic policies affect the entire business. These policies and goals are not very specific because they must be applied to all levels and departments in a company. Strategic decisions are usually non-programmed in nature. The general decision to produce a breakfast cereal or to enter a new market are examples of strategic decisions. Administrative decisions are those made on a lower than the previously discussed strategic decisions. They are usually made by mid-level management, such a divisional or department managers. These decisions concern the development of tactics to accomplish the strategic goals defined by top management. Although top management's strategic decisions are non-specific because they are applied to all departments within the organization, administrative decisions express corporate goals in a specific departmental manner. Administrative decisions are therefore more specific and concrete than strategic decisions and more action oriented. The decision to produce a specific kind of cereal, in this case a fruit-and-fiber breakfast cereal, is an example of this kind of administrative decision. Operational decisions are made on the lowest or supervisory level within the company and concern the course of daily operations. These decisions determine the manner in which operations are conducted-operations designed to accomplish the tactical decisions made midmanagement. These decisions concern the most effective and efficient way to accomplish the

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goals stated on the administrative level. Setting a production schedule and determining the appropriate level of raw materials inventory are examples of operational decisions. In our continuing example of the breakfast cereal, an operational decision would be to produce each week 10,000 boxes holding 12 ounces. Terms for study: manager - 1. ; ; ; ; , administrative manager - , ; advertising manager - assistant manager - ; bank manager - branch manager - 1. ; ; 2. business manager - chief manager - clearinghouse manager - commercial manager - commissioning manager - departmental manager - deputy manager - distribution manager - ; district manager - , division, divisional manager - economic manager - employment manager - engineering manager - 1. 2. exhibition manager - export, export sales manager - factory manager - factory services manager - farm manager - field sales - functional manager - general manager - 1. 2. industrial traffic manager - inventory manager - - lead manager - marketing manager - middle manager - office manager - 1. 2. operating manager - personnel manager - 22

plant manager - product development manager - production control manager - product line manager - project manager - promotion, publicity manager (Am.) - sales manager - 1. 2. staff, labour manager - statistics manager - top manager - , traffic manager - warehouse manager - works manager - 1. 2. manageress - managing director - - board of directors - Exercise 1. Read the following information about people in management and find equivalents to the italicized words: a person who manages sth: manager, director; our personnel manager, our director of finance; a person who controls a whole business or company: managing director, chief executive (Am English president); a woman who manages a shop or a restaurant: manageress; a person whose work is in administration: administrator; We have too many administrators and not enough doctors. one of a group of people who are responsible for controlling the policy and major decisions of a company: (company) director; Shes on the board (=group) of directors. a person who has an important position in an organization: executive; one of their sales executives the most important person in an organization or part of an organization: head; The head of the Bank of England is the Governor; my head of department; a person whose job is to give orders to other people at work: (informal) boss; a person who is the head of sth or in charge of sth or in charge of sth: leader; Shes proved to be excellent leader of this organization; the second most important person in an organization or a part of an organization: deputy; the deputy director/governor; a person who helps another person: assistant; the assistant manager; to make sure that work is done properly, or that people are doing their work properly: supervise sb/sth, oversee sb/sth; noun (Uncountable): supervision; Jim supervises the work of trainees.

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a person who supervises sb/sth: supervisor; Jim works as a supervisor in a factory. a person whose job it is to keep a record of all the money that a business spends and receives: accountant; Exercise 2. Give English equivalents to the following Russian words and expressions: , , , , , , , , , , , Exercise 3. Give Russian equivalents to go with the word goal: to accomplish, to achieve, to adopt, to agree on, to aim at, to choose, to drop, to give up, to have, to pursue, to reach, to seek, to set oneself, to strive for, to succeed in, to work for/towards goal ambitious, appropriate, broad, chief, common, definite, difficult, direct, distant, final, fresh, general, immediate, intermediate, joint, long/short-term, main, real, (un)realistic, specific, true, ultimate, (un)attainable goal Exercise 4. Match the two columns of the corresponding word combinations to go with the word manager (= ): marketing research manager 1) product manager 2) marketing manager 3) ( ) advertising manager 4) sales manager 5) production manager 6) finance manager 7) Exercise 5. Translate the sentences using the following: - to determine, to define ( ) 1. We should first try to determine how much it is going to cost. 2. An inquiry was set up to determine the cause of the accident. 3. Age and experience will be determining factors in our choice of candidate. 4. Upbringing plays an important in determining a persons character. 5. A date of the meeting has yet to be determined. 6. The court determined the defendant should pay the legal costs. 7. The term mental illness is difficult to define. 8. Life imprisonment is defined as 60 years under state law. 9. We need to define the task ahead very clearly. 10. The difficulty of a problem was defined in terms of how long it took to complete. 11. .12. . 13. . 14. .

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Exercise 6. Study the use of different lexis to go with the meaning = an organization that makes or sells goods or services in order to get money then translate what follows: 1. company - to manage/run a company; to start/set up a company; a company goes bankrupt/bust/out of business 2. firm - a company, especially a small one that makes goods or provides services such as giving legal or financial advice; business - a shop or company etc that sells goods or provides services, especially one that employs a small number of people or even only one person: to set up/start a business; to manage/run a business; 4. corporation - a large company that employs a large number of people; 5. multinational - a large company that has offices or factories in many different countries; 6. conglomerate - a very large business organization that consists of several different companies which have joined together; 7. partnership - a company that belongs to two or more people, especially a small company that provides professional services; Translate the following: 1. My father works for an insurance company and the companys profits have risen in the last two years. 2. Shes the boss of a small company which makes greetings cards. 3. The company was set up just after the end of the war. 4. When we first started I had run the company on my own. 5. A lot of well-known UK companies have gone bankrupt in recent years. 6. Ford UKs parent company in America is planning big *cut-backs in production. 7. Before he became senator he worked for a law firm in Los Angeles. 8. The firm employs about 10 full-time staff and 4 part-time workers. 9. He left Chrysler and set up his own management consultancy firm. 10. A lot of small businesses have been badly hit by the recession. 11. When we first set up our printing business there were only two of us - now its grown and there are 20 people working here. 12. IBM is one of the biggest corporations in the US. 13. Kodak started out as a small business in Rochester, New York, and expanded into a thriving multinational corporation. 14. If you work for a multinational, it is quite likely that you will be sent to work abroad. 15. The major cigarette producers are massive multinationals with a large and profitable market to protect. 16. It is the big multinational companies such as BP, ESSO and Shell which dominate the market. 17. A vast American conglomerate has announced plans to buy the site at a cost of well over a billion dollars. 18. In the mid-1980s the big financial conglomerates *muscled into the market. 19. My first job after I qualified was a small accountancy partnership. *cut-back (finance) - a reduction in the amount of money, staff other resources available for a project or an organization: Local governments have been ordered to make further financial cutbacks. A cut-back in staff has slowed down production. *to muscle in (phrasal verb) - to involve oneself in sth when one has no right to do so, for ones own advantage;

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Exercise 7. Translate the following paying attention to the Russian equivalents, use a dictionary if necessary: 1. The group of executives working below the top managers are generally called middle managers. 2. Jane is an important person in our company. She is a member of the Boards of Directors. 3. Alvin, a recent university graduate, has been with the firm for a year. He is at present a junior executive and is being trained for a managerial position. Their work-force is expending rapidly. They now have over 5,000 employees. 5. At least 50% of our staff have been with the company over ten years. 6. Senior executives or Middle Managers in an organization generally have more *fringe benefits than lower-level managers. 7. We are a small group in the Research and Development Department. Fortunately, I get on well with all my colleagues. Our telephone operators work under the direction of a supervisor. I work under Mr. Brown. Hes my superior. Deborah and Dennis work under my authority. I am their boss and they are my subordinates. I am responsible for staff training and development. A managing director is a person of high rank in an organization, usually next in importance to the Chairman. *fringe benefits - extra benefit, given especially to an employee in addition to salary or wages: The fringe benefits of the job include a car and free health insurance. 4. STYLES OF DECISION-MAKING Just as there are different kinds of decisions, there are different kinds of decision-making styles. One style may be more acceptable than others, and decision-makers who show the desired style will be rewarded and promoted to even higher business positions. The task of the new manager is to determine the most effective decision-making style. This can be done by observing the styles of established executives in the specific organization or company. A manager whose style of decision-making is different from that of the company will often encounter great difficulty in having his or her managerial decisions accepted. The "smoother" or problem avoider (PA) seeks to preserve the status quo and acts to keep from making changes. This manager functions to maintain current conditions, and although this may not be the stated goal of managerial decisions and actions, it will be the practical result. When confronted with difficulty, the PA will either reconcile the conflicts in the reported data with a rational that seeks to "smooth over" any conflict or ignore it completely. Thus the PA is often called a smoother. This manager may not recognize problems in the business environment and will be able to come up with rationales for supposed problems that demonstrate that they are not really problems at all. He or she may appear blind to business difficulties and will be the person who most resists business changes, even when the changes are obviously for the best interest of the company. The PA, in the desire to preserve the status quo and avoid making changes, will give great effort and value to intensive preplanning studies. These studies will present and justify

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organizational efforts designed to minimize change. Problem avoiders are good people to keep an organization on a calm and even course, and this may be the most effective decision-making style in industrial environments in which there is little need for change. However, if the business is conducted in a dynamic, changing environment, a more active approach will almost always be more effective for problem-solving. Such a manager will be known as a problem solver. The problem solver is the most common managerial style. Most managers expect to be confronted with problems and to solve those problems in the normal course of doing business. There is no hesitation to make changes when there is an indication that such changes are good and necessary. There is no prior commitment to make changes, however, until it has been determined by means of research and scientific analysis of the data that changes are necessary. It is recognized that changes without necessity is gratuitous, a waste of organizational resources. Such gratuitous changes serve to foster an illusion of progress while merely confusing everyone. The problem solver accepts that modern business operates under conditions of risk and uncertainty. This means that business is often in a very turbulent environment with the imperative to adapt to changing circumstances. Businesses that fail to adapt suffer decline, cease to be productive and profitable, and may eventually die. The problem solver accepts the risk and makes decisions that help deal with the uncertainty. These managers deal with problems as they arise and do not seek to preserve the status quo unless the current situation is better that any possible change. The only criticism we may advance of the problem solver is that this kind of manager is preoccupied with the current problems. This person is generally always in a primarily reactive mode, reacting to problems as they arise. Often these problems could be better dealt with if they had been anticipated - when they were smaller and more efficiently managed. The problem solver rarely anticipates problems but is very effective in dealing with them once they have become known. The problem seeker, as the name implies, actively seeks out problems and attempts to deal with them before they emerge as major difficulties for a business. This manager is enthusiastically involved with future planning and creation of contingencies. The problem seeker not only recognizes the need for change but also believes that the best way to deal with change is to anticipate it, not merely react to current needs. This kind of managerial decisionmaker use of data analysis, not merely to understand the present, but also to project the future. The problem seeker is to corporate champion of research and will devote many hours of dedicated work trying to understand the implications of research data for the company's future. Although this preoccupation with the future of the company may seem to lead to a neglect of current needs and situations, the problem seeker has a vital role in planning the future of the company. There are two major points in favor of the decision-making style of the problem seeker: It is often easier and more efficient to deal with small problems before they become big ones; It is not enough for a company to change ; it must change in the right direction to survive in the rapidly changing contemporary environments of business. The problem seeker is a major corporate resource in planning for the future, but it is obvious that a company must be able to change both in response to current problems and in response to anticipated future problems. One of the major distinguishing features of these three types of decision-makers is the ability to deal with conditions of risk and uncertainty. The problem avoider seeks to minimize risk and eliminate uncertainty by promoting the status quo, a totally known condition. The 27

problem solver recognizes the need to risk change and function in an environment on uncertainty in which there are unknown conditions and the possibility of anticipated results. The problem seeker accepts the greatest amount of risk and uncertainty in actively seeking to deal with problems before they have emerged and become known. We now turn to a general description of the difference levels and types of risk and uncertainty to better understand the conditions under which managerial decisions are made. You should remember: Decision-making within the contemporary business organization involves all the problem-solving styles. The problem avoider, problem solver, and problem seeker each have a role to play within the same company. Although one particular style may be more effective than the others in a specific situation, all organizations are confronted with a complex variety of challenges that will require a variety of problem-solving styles. Terms for study: decision - 1. ; ; 2. ( ) 3. . ; decision criterion - ; decision-flow analysis - decision function - decision-maker - , decision-making center - , decision making procedure, process - decision-making stage - decision making under certainty - decision making under uncertainty - decision making under risk - decision error, wrong decision - administrative decision - arbitration, arbitrators decision - business decision - committee decision - experts decision - compulsory decision - draft decision - early decision - management, managerial decision - motivated decision - operative decision - production decision - sequential decision - unanimous decision - unilateral decision - decision under risk - , to affirm, to confirm a decision -

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to appeal against a decision - to arrive at decision - to await a decision - to delay a decision - to enforce a decision - to carry out, to execute, to implement, to fulfill, to perform a decision - to hold a decision - to hold over a decision - to kick against a decision - to leave to somebodys decision - - to make a decision, to pass a decision - to rescind a decision - to submit for decision - to submit to a decision, to obey a decision - to take a decision - to wait for a decision - commitment - syn. obligation; to carry out, to fulfill, to meet commitments - to violate commitments - treaty commitments - to enter into a commitment - to fail to meet ones commitments - to incur a commitment - to make no commitments - to shrink a commitment, to shrink away from a commitment - to undertake a commitment - Exercise 1. Give English/Russian equivalents to the following words and word combinations: a) -; ; ; ; ; ; ; ; ; - ; ; ; ; ; ; ; b) to confront with a complex variety of challenges; major distinguishing features; the problem seeker; creation of contingencies; to preserve the status quo; to be enthusiastically involved with future planning; there is no prior commitment; there are two major points in favor of; to understand the implications of research data; preoccupation; to be preoccupied with the current problems; to anticipate problems; justify organizational efforts

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Exercise 2. Give Russian equivalent to go with the word decision: a) to abide by, to adhere to, to affect, to alter, to announce, to appeal against, to approve of, to arrive at, to be faced with, to cancel, to challenge, to change, to come to, to confirm, to contest, to defer, to endorse, to enforce, to face, to form, to give, to go ahead with, to go back on, to hesitate over, to ignore, to implement, to justify, to lie behind, to make, to overrule, to overturn, to postpone, to prompt, to put off, to question, to ratify, to reach, to reconsider, to rescind, to reverse, to revoke, to scrap, to take, to uphold, to vindicate decision decision depends on ,is binding/final, opens the way for , remains in force, rests with somebody, stands, takes effect c) arbitrary, basic, binding, clear-cut, conscious, correct, critical, crucial, daring, definite, delicate, difficult, emotional, (un)fair, (un)favorable, final, foolhardy, forceful, hard, harsh, hasty, immediate, irreversible, irrevocable, joint, key, landmark, lightning, major, momentous, (un)popular, previous, prompt, proper, quick, rash, recent, sensible, snap, split, straightforward, swift, ultimate, unlawful, unpalatable, vital, wise, wrong decision Exercise 3. Give Russian/English equivalents to go with the word commitment: a) to abandon, to acknowledge, to assume, to avoid, to deny, to enter into, to express, to feel, to fulfill, to get out of, to go back on, to have, to honor, to keep to, to make, to meet, to recognize, to take on commitment b) ; ; ; ; ; ; Exercise 4. The phrases above are examples of collocation. This refers to words which are frequently grouped together. Complete the following sentences with appropriate verbs and then translate them: (to make/take a decision, to keep/bear in mind, , to take into account, to come to an agreement, to give/express an opinion; to make/to put forward/come up with an agreement; to run risk; to put pressure; to make recommendations; to reach/draw from smth; to give a great deal of thought; to take action) Although our company wants to expand rapidly, we must in mind that we have limited cash to do. It is important to into account all options before a decision. The Financial Director has the conclusion that we must reduce costs by 10%. Finally, the Chairman his opinion about the matter. After we had listened to him, we were able to an agreement. Abby an interesting suggestion at the meeting. If we dont come up with new products, we the risk of falling behind our competitors. Our chairman is too old for the job. Some of the directors have pressure on him to resign. The writer has some recommendations in his report. What conclusion have you from the facts given in his letter? I have a great deal of thought to out financial problems After five hours negotiation, we finally agreement. Exercise 5. Supply as more as possible objects for the following verbs and word combinations: 30

to encounter, to launch, to determine, to observe, to accept, to preserve, to keep from, to maintain, to justify, to state, to confront with, to reconcile, to recognize, to come up with, to appear blind to, to demonstrate, to resist, to avoid, there is no need for, to conduct, to be known as, there is an indication for, to confuse, to be affected by, to operate under, to adapt to, to be preoccupied with, to anticipate, to deal with, to seek out, to create, to understand, to minimize Exercise 6. Supply nouns to go with the following attributes giving as many word combinations as possible and translate them into Russian : acceptable, managerial, effective, flexible, multilateral, stable, adjustable, necessary, pressing, various, behavioral, sequential, compulsory, operative, early, unilateral, motivated, anticipated, unanimous, changing, current, pressing, modern, costly, intrinsic, sufficient, common, irreversible, irrevocable, binding, administrative, vital, research, future, original, troublesome Exercise 7. Study idiomatic uses of the word spot and translate what follows: on the spot = immediately or at the place of action in the spot = in a difficult situation in the spotlight = at the center of public attention spot-on = exactly right spot-check = quick, random examination to put someone on the spot = ask someone a difficult question or put someone in a difficult situation spot-cash = cash on delivery high spot = outstanding moment weak spot = aspect of a character, situation or organization that can be criticized to knock spots off = to be much better than We are in a spot at the moment because one of our biggest customers has gone bankrupt. He owed us a lot of money. Recently, The Distillers has been in the spotlight. Two companies have been fighting to take it over, and everyone has been talking about the takeover battle. The forecasts of our Marketing Department have been spot on. I dont know how they manage to be so accurate. our terms for this consignment of rubber are spot cash. I dont want to wait for an answer. Cant you give me a decision on the spot. - Can we give you twenty machines for immediate delivery? - Now, you are really putting me on the spot. I dont know how many we have in stock. The income tax officials often do a spot check on taxpayers to make sure they are giving accurate information. The high spot of our year is our staff party. Even the Chairman lets his hair down. Our distribution system doesnt cover certain areas of the country. Its the weak spot in our business. In my opinion, our computer products knock spots off those of our competitors. Exercise 8. Lets explore a wide aspect of the idea of the word decision which expresses a different idea, make up sentences with each meaning under consideration. Each line starts with the keyword: judgment 31

will resolution choice intention decree legal trial Exercise 9. Study the information below then complete the following passage with correct forms of the words in the box: (to arise -verb; to rise - verb; to raise - verb; rise - noun) to arise (arose, arisen) - to come into being: A serious problem has arisen which will take time to solve; to rise (rose, risen) - intransitive verb, =to stand up: The whole audience rose to cheer the singer; to raise (raised, raised) - transitive verb, = to lift up: If youd like to ask a question, raise your hand; A serious problem has (1) in my company. Because the cost of living (2) by 10% last year, management decided to (3) the salaries of all the staff. For this reason, they gave everyone a (4) of $100 a month. However, later on, they had to pay for this by (5) the prices of all our products by 10%. Such a large (6) in prices made our products uncompetitive. So now, management is talking of lowering our salaries again! Exercise 10. Make up the sentences of your own with the word combinations below: to raise a claim - ; to raise objections - ; to raise a point (a question) - ; to raise the price - ; raised check - ; to raise a loan - ; to raise money on a thing - -; to raise difficulties - ; to raise the blockade - ; to raise the quarantine - ; to raise the taxes - ; to raise the wind , ( ) Exercise 11. Expand on various styles of the decision-making process keeping to the plan: 1. The "smoother" or problem avoider 2. The problem solver The problem seeker

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III. DECISION-MAKING PROCESS UNDER DIFFERENT CONDITIONS

Conditions of certainty Under conditions of certainty all decision variables and the results of each potential course of action or solution are known in advance. A manager can approach the decisionmaking secure in the knowledge that there will be no unanticipated results. In this sense, decisions made under conditions of certainty are programmed decisions. An example of these conditions is the relationship between the manufacturing of television sets and inventory level parts. There is no uncertainty - the higher the level of manufacturing, the lower the level of inventory of parts used in the manufacturing. A decision to increase production leads directly to a reduction in inventory level. A manager making the decision to increase production knows the impact on inventory exactly. Since all the results are known before making a decision, many managers prefer to make decisions under conditions of certainty. This is possible only in the most simple situations. There is rarely knowledge of all possible results, and management usually encounters a degree of risk. Conditions of risk Risk is defined as a condition in which the results of any decision or course of action are not definitely known bur will probably fall within a known range. One describes risk in terms of probability; that is, the "probability of a specific outcome is a fraction between o and 1, and if the probability of specific outcome is 1, it is completely known; if the probability is o, it is completely unknown." Since under conditions of risk the probability is neither completely known nor completely unknown, it is described as a fraction between the two extremes. An example of making decisions under conditions of risks would be to introduce a redesigned automobile model into the market. There may be a . 20 probability of sales of 20,000 cars the first year, a .50 probability of 30,000 of 25,000 sales the first year. Since there are past sales data on how last year's design for this car did, there is a basis for estimating the probability of success for the new design. Note, however, two aspects for this description: (1) Although the actual results of the decision to introduce a new car model are known, the general limits of possible probabilities and results are known, and (2) all the probabilities add up to 1. When the probabilities are known, even though the actual results are not, it is possible to use various techniques to estimate the most favorable decision outcome. The example supposed that we had past data and could estimate the probabilities of specific outcomes, but suppose the new car was something never seen before, a totally new concept for which there were no previous sales data. In this case it would not even be possible to estimate probabilities. In situations in which there is no reliable estimate of probabilities or the potential decision results are unclear or not known, we have conditions of uncertainty. Conditions of uncertainty When a manager cannot predict the outcome of a managerial decision, or if the outcome can be predicted but the probability of that outcome actually happening cannot be predicted, a condition of uncertainty exists. The inability to predict outcome or assign probability may be due to the following factors: 1. to many variables in the situation; 2. few variables in the situation but not enough knowledge about them. The assignment of probability becomes impossible under these conditions. This is 33

the situation set forth at the end of the last section in which a totally new car was to be introduced into the market place . Although the potential results of such a new product introduction are known (failure or success), the probabilities of each possible result are not known. There is no past data upon which to make prediction. This is why introductions of completely new products are very uncertain events and vast sums of money are lost each year if such managerial actions do not succeed. The single failure of a "new product launch" does not automatically doom a manager's career (although many such failures may destroy a career). Because of the great uncertainty in this management decision-making process, it is understood that some new products, however well conceived, designed, and produced, will fail. You should remember: Managerial decisions made when the potential results of the decisions and the probabilities of occurrence of the results are known are made under conditions of certainty. Decisions made when the potential results are not totally known and probabilities must be assigned under conditions of risk. When neither the results nor the probabilities of occurrence of the results are fully known, management is making decisions under conditions of uncertainty. As uncertainty increases, so does the possibility of failure.

Terms for study: condition - 1. , 2. pl , , ; ; 3. , economic conditions - social conditions - - market conditions - () to fulfill, to follow, to implement, to meet conditions - to infringe, to violate conditions - to provide favorable conditions for - to make conditions - to comply with, to meet, to satisfy the conditions - to set forth conditions - to stipulate conditions - subject to the following conditions - on condition of reciprocity - under appropriate, certain conditions - () on condition that - ,

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inventory - 1. , ; . - 6. . ; available, on-hand inventories - inventory control - - manpower, personnel inventory - ; merchandise inventory - spare parts inventory - standard inventory stock - ; standard cost inventory plan - - warehouse inventory - to draw up, to make, to take an inventory - , standard inventory - level - consumption level - decision-making level - , expected earning level - full employment level - funding level - income level - inventory level - occupational level - overall level of income - performance level - preferential level - skill level - work level - level of achievements - level of advance - level of business - level of competition - level of efficiency - level of profitability, of profitableness - at executive level - at government level - to increase the price level - to maintain a stable level - to provide high level of service - to reach peak level -

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Exercise 1. Give English/Russian equivalents of the following words and phrases: a) ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ) to approach the decision-making; to take the solutions under certain conditions; relationship between the manufacturing company and the supplying company; to increase production; to lead directly to a reduction; to encounter a degree of risk; to introduce a redesigned model into the market; to fall within a known range, a fraction between the two extremes; a basis for estimating probability of success; actual results of the decision; probabilities of specific outcomes Exercise 2. Give Russian equivalents to go with the word risk: to accept, to anticipate, to avoid, to be aware of, to calculate, to constitute, to eliminate, to encounter, to enhance, to entail, to estimate, to face, to foresee, to gauge, to guard against, to justify, to lessen, to magnify, to minimize, to mitigate, to outweigh, to pose, to realize, to reduce, to represent, to run, to take, to take on risk risk diminished, grew up, receded appalling, apparent, attendant, calculated, colossal, dangerous, daunting, faint, full, great, high, horrifying, huge immediate, imminent, incalculable, infinitesimal, (un)justifiable, (un)justified, low, negligible, obvious, overwhelming, perceptible, remote, serious, significant, slight, substantial, terrible, tremendous risk its worth the risk Exercise 3. Learn the idioms with the word risk and then translate what follows: a) to risk life and limb - to do something very dangerous where you might get hurt to risk your neck - to do something very dangerous that puts ones life, job etc. in danger at (someones) own risk - with (the person concerned) agreeing to accept any loss, damage etc. involved to run/take the risk (of doing something) - to do something that involves which involves a risk 1. These skiers risk life and limb every day for the thrill of speed. 2. Im not going to risk my neck climbing over a twenty-foot wall! 3. He was aware that in selling the companys shares he was risking his neck. 4. She knew that joining the mountaineering expedition she was risking her neck. 5. Cars are parked here at your own risk. 6. I took the risk of managing this department - I suppose I get on well with the staff. 7. She took the risk of buying that jumper for you in the sales - I hope it fits. 8. He had got into the habit of risking his neck, and his tendency to run into

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unnecessary peril seemed to her a form of intemperance which should be quietly and steadily resisted. Exercise 5. Make up sentences of your own with the word combinations close in the meaning to the verb to risk and translate them: to chance, to dare, to endanger, to expose to danger, to gamble, to hazard, to imperil, to jeopardize, to put in jeopardy, to skate on thin ice, to take a chance on , to take the plunge, to venture Exercise 6. Study the information below as to the adjectives close in the meaning to the word risky and translate them paying attention to the Russian equivalents: chancy (informal), dangerous, dicey (informal, chiefly Brit.), dodgy (Brit., Austral., N.Z. informal), fraught with danger, hazardous, perilous, precarious, touch-and-go, tricky, uncertain, unsafe Exercise 7. Give Russian equivalents: full employment level, price level, production level, quality level, replenishment level, risk level, salary level, sales level, standard level, tax level, technical level, technological level, top level, level of development, level of living, level, of output, level of rates, business risk, consumers risk, contractors risk, producers risk, seller s risk, reinvestment risk, tenants risk, against all risks, at somebodys risk, to accept a risk, to assess a risk, to assume a risk, to carry a risk, to cover a risk, to insure a risk, to incur a risk, to lessen a risk, to run a risk, to take a risk, additional conditions, business conditions, equal conditions, market conditions, labors conditions, preliminary conditions, to break conditions, to conform to conditions, to lay down conditions, to set forth conditions, to observe conditions, spare parts inventory, warehouse inventory, level of achievements, level of advance, level of business Exercise 8. Keeping in mind the information from the Terms of study box translate the following sentences paying attention to the Russian equivalents to go with the word condition(s): 1. One of the conditions of the job is that you must be able to drive. 2. We ask for immediate delivery as one of the conditions of the sales agreement. 3. He had a used car in perfect condition. 4. You are in no condition to go anywhere. 5. Neglected children are living under the most appalling conditions. 6. The offer is subject to certain conditions. 7. They agreed to lend us the car on condition that we returned it before the weekend. 8. They will give us the money on one condition - that we pay it back within six months. 9. They agreed under the condition that the matter be dealt with promptly. (especially Am E) 10. Congress can impose strict conditions on the bank. 11. They have agreed to the cease-fire provided their conditions are met. 12. A good training program is one of the conditions is one of the conditions for successful industry. 13. Work is basic to the human conditions. 14. You must on no condition tell them what happened. 15. Be careful with him! Remember hes got a heart condition. (=any of variety of heart diseases). 16. Her working conditions are terrible: uncomfortable chairs, bad lighting and indescribable food. 17. Due to adverse weather conditions the train service has been slowed down considerably. 18. What sort of conditions does the planet need to grow in? 19. Bacteria multiply in warm conditions. 20. One of the conditions in the contract is that we dont build on

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the land. 21. Were not in a position to make/set any conditions - well have to accept the contracts that are offered to us. 22. Under the conditions of the agreement she is obliged to vacate the house on July 12th. 23. The condition of liberty is eternal vigilance.

Exercise 9. Make up sentences using the following information about the word combinations to go with the verb to assign: to assign - 1., , . , (, ) ; to assign somebody a task - - to assign homework - these rooms were assigned to us - two managers were assigned to prepare the exhibition - to assign a limit - () to assign a sum - to assign a day for trial - to assign a day for (the) hearing - to assign a job - to assign costs - Exercise 10. Expand on the topics: Conditions of certainty 2. Conditions of risk 3. Conditions of uncertainty

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IV. STEPS IN THE DECISION-MAKING PROCESS

The first step in the managerial decision-making process is an examination of the current situation to determine if a problem actually exists. This is accomplished by performing a "situational analysis". Once a statement of goals is determined. Alternatives are considered and evaluated, performance standards set, and pilot testing begun. Situational analysis The current situation, determined from an examination of available data, is the "what is". It is not obvious since, as evidence by the discussion concerning the problem avoider, there are managers who have a stake in the status quo and will resist change. These managers may not see the current situation in an unbiased manner, and their perceptions cannot be relied upon to determine an accurate analysis of "what is." One of the ways in which management can accomplish an accurate analysis of the current situation is to make use of an external consultant. Since outside experts theoretically have no stake in the status quo, they should be able to give an accurate appraisal of the current company situation. Managers often find it useful, in executing a situational analysis, to focus on the internal organization conditions, the external factors bear upon business, and the relationships between the two. The internal analysis, called an organizational audit, consists of listing the organization's strengths and weaknesses. The strengths, what the business does well, are referred to as its "core competencies." But it is not enough to view an organization internally; the situational analysis also requires an understanding of the external reality, the opportunities and threats that are on the horizon. The external analysis is called the environmental scan. Internal audit and environmental scan are collectively referred to as the SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Both are necessary for the situational analysis because if an external opportunity exists, there must be an organizational ability to take advantage of that opportunity. If the business is internally weak where such an external opportunity requires strength, the business must either develop that necessary strength, hire experts who bring the necessary skills and abilities to bear, or be unable to pursue the opportunity. Even so, this may be difficult. What is a realistic goal for the company? If a future goal statement is unrealistic, it will give false directions to the company's management. Goals that are not realistic do not motivate management - they only misguide and cause misallocation of organizational resources. Some indication of future directions for management may be gained by examining past company performance and the performance of other companies in the industry. Both of these are indications of what is possible, and management is free to build upon past performance in formulating new goals. The new goals will at least be built upon the foundation of past performance. If there is a gap between the "what is" (current situation) and the "what should be" (desired future), an organizational need is demonstrated and "what should be" becomes an organizational goal statement. The next step is to formulate performance standards. Setting performance standards 39

If the end result of situational analysis is an organizational goal statement, how will a manager know if the goal has been accomplished? Only by having performance standards can management know if it has been successful in goal accomplishment. These performance standards must be realistic, behaviorally based, observable, and quantifiable. Some managers resist the creation of performance standards precisely because they create accountability. When performance can be measured against standards, managers can be held accountable for that performance and the use of organizational resources. Once performance standards have been stated, managers can turn to the generation of alternative course of action. It must be recognized that accountability does impact not only the individual manager but also the entire organization, with potentially devastating results. The publicly held corporation that reports its earnings quarterly risks financial disaster should it fail to meet its projected return. In a real sense, the stock market holds the entire business organization to account for its performance, and the marketplace is littered with the remains of corporations that lost a significant portion of their equity value (defined here in limited form as the value of their publicly held stock) based on a single quarter's financial results. Thus, there is a premium placed upon an organization's ability to set performance standards accurately and realistically. It has often been observed, in consideration of this "quarterly results" accountability, that it is a uniquely American phenomenon; in countries such as Japan, the evaluation of organizational performance flows from annual performance or an even longer time frame. In addition, the American emphasis upon a short-term decision-making with concomitant payoffs. Organizational decision-making that involves a longer term commitment of resources and similarly longer term payoffs - as with esoteric research and development projects - is often discouraged. Generation of alternatives There are always at least two courses of action that management can take - do something or do nothing. The alternative of doing nothing may in fact prove to be the best action decision if the other potential course of action either does not accomplish the organization goal or creates significant new problems in the process. Under the heading of "doing something," management may creatively generate all sorts of alternatives. Brainstorming is a technique that is often used with a small group of employees to generate a large number of alternatives in a short period of time. In brainstorming, every participant in a group is confronted with a business problem and then calls out potential solutions. No criticism is voiced during the alternative generation phase because this would interrupt the generation of potential solutions. The ideas are recorded on a chart or chalkboard. When the participants have exhausted their imaginations, each potential solution is evaluated in detail by the group. After evaluation it may be that doing nothing is actually the best course action. How can management know which is the best course of action or combination of actions

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to accomplish the organizational goal? The selection of an action alternative is made based on a comparative analysis of the consequences of each action. Consequences evaluation Each proposal alternative action has consequences if implemented and can be evaluated based upon these consequences. An alternative is selected based upon the best possible consequence or outcome. In performing this consequences evaluation, management must ask three questions: Does the alternative achieve the organizational goal? Are there any undesirable consequences or side effects? Can the organization afford this alternative? A negative answer to any of these questions is a strong indication that this alternative is unacceptable. Note that if the answer is no to any question, the process stops and the alternative is rejected. Pilot-testing and full implementation Once an alternative or combination of alternatives is chosen, the alternatives must be pilot-tested. Management should not proceed to full implementation of the alternative without testing it out on a small scale, unless there is great need to do so. This is because what looks good on a paper may not act as predicted in a large-scale application. Thus a pilot test offers the final chance to modify the action plan based upon information derived from the small-scale test. This information, which is used to modify the action plan, is called feedback. After the pilot test and action plan modification, the selected course of action is fully implemented. After a sufficient period of time the accomplishment of the organizational goal can be measured and evaluated. If the plan does not seem to be working on the larger scale as intended, it can be modified, again based on feedback. You should remember Although the decision-making process may be different from company to company, it will involve a general format. The first step is to identify the problem and this is done by means of a situational analysis that compares the current situation with the desired one. If there is a difference, a problem has been documented. The next stop is to define the performance standards by which management will know that the problem has been solved. This creates accountability. Potential standards to the problem are identified, but a recommendation for implementation cannot be made until the consequences of each option are evaluated. Once a solution has been selected it will be pilot-tested. Information derived from the pilot test, called feedback, will be used to make adjustments before full implementation of the selected solution to the problem.

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Notes: esoteric - very unusual; understood or liked by only a small number of people, especially those with special knowledge; , , , : He has an esoteric collection of old toys and games. She has a rather esoteric taste in clothes (disapproving or humorous). Terms for study: analysis - ; ; an accurate analysis - , , analysis of accounts - [] analysis of economic trends - analysis of performance - analysis of profitability - to make, to carry out analysis - situational analysis - audit - , to carry out an audit - to make a cash audit - concomitant - ; concomitant factors - (, ) concomitant payoffs - equity value - 1. 2. equity capital - ; ; equity earnings - () equity holding - equity investment - equity investor - ; environmental scan - () setting - (. ) performance standard - 1. ; 2. expectation - 1. 2. 3. pl , , ; inflationary expectation - market expectation - price expectation - profit expectation, expectation of profits - sales expectations - expectation of loss - expectation of working life - in expectation - to exceed expectations - beyond expectation - contrary to expectation -

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opportunity - ; ; as opportunity offers - at the first opportunity - to take opportunity - behavioral - , pilot - 1. , , , 2. pilot testing - feedback - 1. 2. 3. . , 4. , data feedback - user feedback - Exercise 1. Give English equivalents: ; ; ; ; ; ; ; ; ; ; ; ; ; , ; ; ; ; ; ; ; ; , ; ; ; , ; ; ; Exercise 2. Translate the word combinations to go with the word audit using a dictionary if necessary: annual audit, cash audit, detailed audit, general audit, interim audit, organization audit, preliminary audit, tax audit, stores audit, quality audit, test audit, unscheduled audit, to carry out an audit, marketing audit, inside audit Exercise 3. Translate the text into Russian then summarize it: The process of checking accounts is called an audit. Auditors check whether the accounts of a company, private trader, or association are complete and consistent, whether they agree with other records of purchases, sales and inventories, and whether they comply with legal requirements and professional standards. Companies are legally required to have their accounts externally audited, and many other bodies are required to do so by their own constitutions. Many companies and other organizations employ internal auditors, to check the accuracy and

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completeness of their internal bookkeeping. The audit provides a safeguard against both fraud and incompetence in accounting. Auditors may certify that accounts present a true and fair view of a companys finances, or they can qualify them, that is, add adverse comments. The auditors of UK companies are elected by the *annual general meetings of the companies shareholders, and are required to be professionally qualified accounts. Other bodies such as charities are required to have their accounts audited, but their auditors need not be professionally qualified, and are often unpaid. Many companies and other organizations also employ internal auditors, to check on the accuracy and completeness of the firms internal bookkeeping, as a safeguard against both fraud and confusion in accounting. *annual general meeting (AGM) - ( , , , ; ) A meeting of the voting shareholders of a company, or the members of an association, at which the officers report on the last years activities, and accounts are submitted for approval. Exercise 4. Match the two columns of synonyms: management a. answer, clarification, resolution accountability b. complication, difficulty implementation c. examination, investigation, inquiry performance d. practice, use analysis e. choice, option, selection application f. complication, difficulty, dilemma analysis g. responsibility, liability alternative h. accomplishment, execution, fulfillment problem i. achievement, completion solution j. administration, control, direction, guidance Exercise 5. Study the information below then translate what follows paying attention to Russian equivalents: Equity ( pl equities) the ordinary shares of a company ( ) ; () . , ; Law In English-speaking countries, equity is also a system of justice which allows a fair judgment of a case where the laws that already exist are not satisfactory

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1. The company is planning to issue more equity. 2. The company wants to attract more equity capital from investors. 3. Investing in equities carries a fairly high risk, their value may fall. 4. He sold his equity in the company last year. 5. He was prepared to commit $1 billion in equity to a purchase. 6. The rights give holders the opportunity to purchase additional equity interests in the company at a big discount under certain conditions. 7. NBC had agreed to be an equity partner of the movie studio. 8. It has a 40% equity stake in a huge and expanding shopping center. 9. Ultimately, their aim is for a society based on equity and social justice.10. He controls 7% of the equity. 11. Lets imagine a society run on the principles of equity and justice. 12. This court recognizes the equity of your claim. Exercise 6. Which of these statements are true(T) and which are false (F)? Answer then translate into Russian the true statement: Top management is responsible for making strategic decisions that set the course of business. Mid-level management makes administrative decisions. Supervisory-level managers make operational decisions. (T/F?) The problem seeker actively seeks out problems before they emerge and will anticipate their significance. This manager will enthusiastically devote corporate resources to solving these problems before they can assume major significance. This manager anticipates rather than merely reacts. (T/F?) A condition of certainty is when both the results of a decision and the probability of its occurrence are known to the manager. A condition of risk exists when the results of a managers decision are not definitely known but will probably fall within a known range. (T/F?) A new business venture will be most likely to fail under conditions of uncertainty in which neither the results of managements decisions nor the probabilities of occurrence of those results are known. This condition makes effective decision-making difficult. (T/F?) Exercise 9. Supply verbs for the following nouns and translate the following word combinations: condition, result, decision, risk, terms of probability, specific outcome, probability, factors, variables, knowledge, product introduction, failure, success, managers career, data feedback, opportunity, expectations, analysis, audit Exercise 8. Give a presentation on the topic The steps in the managerial decision-making process. Keep up to the plan: situation analysis performance standards alternatives generation consequences analysis pilot test and implementation evaluation program revision via feedback

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V. AN OVERWIEW OF THE FUNCTIONS OF MANAGEMENT

First, let us step back and look at the broad picture, the management process that applies to any organization. It does not matter whether you currently managing yourself or a department, a division, or the whole organization. The management process outlined here will work for you. THE MANAGEMENT PROCESS I. PLANNING Strategic planning Setting goals Operational planning Defining objectives Designing the organization in the best way to achieve the goals and objectives Assigning responsibilities Allocating resources Designing organizational controls (timetables and measures of the organization's performance as a whole) II.CONTROLLING Management control (ensuring efficient and effective use of resources) Developing individual standards 2. Designing project controls (such as work plans and milestone charts) 3. Motivating Monitoring Reviewing progress Solving problems Coaching and counseling Performance appraisal Operational control (ensuring that specific tasks are carried out efficiently and effectively) Scheduling Establishing procedures III.EVALUATION AND FEEDBACK TO THE NEXT CYCLE We are now going to run through this process step by step. This represents the cyclic nature of the process or, in other words, that the activities or steps an organization takes should go on continuously, usually moving through one cycle during a budget period or other designed period.

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Planning One of a manager's most important jobs is planning. There are many kinds of planning, and planning can be defined in a number of different ways. We say we are planning when we list activities for the day or when we think about the family vacation next year. In terms of management activity, however, what we mean by planning can be broken down very specifically. There are two major kinds of planning in management: strategic planning and operational planning. Strategic planning The major outcome of strategic planning, after gathering all necessary information, is the setting of goals for the organization. In state government, for example, strategic planning is the domain of the highest levels, the governor and cabinet and the legislature. They produce goals for managers to work toward. A goal is a long range aim for a specific period. Unlike an aspiration or a hope, a goal is always specific and realistic. A familiar example is that of Kennedy Administration, which in the early 1960s set a long-range goal to be accomplished in a specific time period: to have a man on the moon be 1970. Note that the goal was long-range over the course of the 1960s and there was a specific time by which it had to be accomplished, 1970. Long-range goals set through strategic planning are translated into activities that will ensure reaching the goal through operational planning. Operational planning Strategic planning takes place at the highest levels; other managers are involved with operational planning. The first step in operational planning is defining objectives. An objective is a result expected by the end of the budget (or other designed) cycle. After strategic planning, the definition of objectives is the critical step in the management process. It tells us where we are going; without knowing where we are going we cannot possibly know how to get there. After the objectives have been defined, the manager must design the organization in the best way to achieve the goals and objectives. In general, private industry allows greater flexibility in periodically reshuffling an organization to achieve specific goals. In the nonprofit sector (for example, in government), there is less flexibility, although in some cases personnel shifts or changes that do not violate legislative staffing mandates or authorizations can be made. The next step in operational planning is assigning responsibilities. The manager breaks down the objective into pieces and hands out responsibility for those pieces to various units or individuals. When all the assigned responsibilities are fulfilled, they should equal the successful accomplishment of their objective. The manager must then allocate to the various units or individuals the resources necessary to get the job done. Finally the manager must be aware of problems that may occur along the way to prevent meeting the objectives. Timetables, schedules, performance standards, and other techniques serve as major checkpoints to trigger action if necessary to keep things on course. The manager thus sets up ways to check the progress of the unit as a whole toward its objective.

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Controlling Once planning is complete, management concentrates on the business of controlling, making sure on a day-today basis that the objective will be met. It is first necessary to ensure the efficient and effective use of the resources dedicated to achieve the objectives - the most critical resource being the human resource. This is management control. Management control The first task in management control is to develop individual standards of performance, statements of what will occur when a subordinate fulfills his or her responsibilities well. You remember that after objectives were defined, responsibilities were assigned to units or individuals and that when the responsibilities were successfully carried out and added together they equaled the successful achievement of the objectives . Now standards of performance are developed for each responsibility assigned. All achieved responsibilities added together will equal the accomplishment of the objective. This is an important relationship among objectives, responsibilities, and standards of performance. After individual standards are developed, specific project controls, such as work plans and milestone charts, should be designed. Whereas the controls developed under operational planning were measures of progress toward achieving the unit's objective, the controls designed here as part of the controlling process are measures of the progress toward fulfilling the responsibilities assigned as components of that objective. In other words, we are going further down the line and becoming more specific. In the course of the budget cycle, with standards of performance and project controls as tools, the manager must motivate people to meet their standards, monitor and review their progress, problem solve, and coach and counsel when necessary. At the end of the cycle the manager must appraise individual performance in terms of the standards that were developed at the beginning of the cycle. Operational control Another key component in the controlling activity is operational control. This is the nitty-gritty function of ensuring that specific tasks are carried out efficiently and effectively. It is the detailed scheduling and procedures that become routine activities. Evaluation and feedback The last major activity in the management process is to evaluate how well the organization has done in achieving its objectives and then to prepare to begin the entire process all over again. Note it is only mentioned to give a general picture of the management process.

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You should remember There are three major activities in the cycle management process: planning, controlling, and evaluation and feedback. Once we have the goals set through strategic planning, we define objectives, assign responsibilities, and set up organizational controls for each budget cycle. We then enter into the day-to-day process of ensuring that we meet our objectives. This is controlling. The type of control with which we are most concerned is management control, ensuring the efficient and effective use of resources devoted to achieving the objective. We are particularly concerned with the human resource. In controlling, we develop individual standards of performance with our subordinates, set up specific project controls, motivate our employees to fulfill their responsibilities, monitor and review progress, solve problems along the way, coach and counsel when necessary, and, finally appraise individual performance. At the end of the cycle we evaluate how well we did in achieving our objectives and prepare to begin the cycle again. A system for managing for results Right now we will take from this comprehensive management process a system to help us to get the results we want. There will be four components to that system, recognizable from the process outline. What may not be so obvious is that they are the critical links which support the whole process: - defining objectives - assigning responsibilities - developing standards of performance. Just as the whole management process is a cycle, so also is this system within a unit. The system for managing for results has its stages. At the beginning of the budget period, objectives are defined for the unit, responsibilities are assigned, and standards of performance are developed with the aid of subordinates. At the end of the period, performance is rated against standards and the cycle begins again.

Terms for study: to appraise - 1. ; 2. 3. to assign - 1. (. ) 2. 3. 4. ; ; 5. 6. controlling - ( ) comprehensive - 1. ; ; ; ; ; 2. ; ; 3. () goal - 1. , 2. ; , objective - 1.; ; 2.; to counsel - 1. 2. to chart - management control -

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management process - ( ) managing for results - milestone - (- ) milestone chart, schedule - milestone scheduling - to equal - , the human resource - () hierarchy of objectives - , operational control - operational planning - performance - 1. , (. ) 2. , ; ; (. ) 3. ( ) 4. (. ), ; actual performance - average performance - budget performance - economic performance - error-free, fail-safe performance - forecasting performance - standard performance - substandard performance - performance analysis - 1. 2. performance appraisal, appraisal of performance - () performance check - performance data - performance degradation analysis - performance gap - performance index - performance level - performance measure - performance quality standard - to attain the guaranteed performance - to effect performance - to improve, to increase, to raise performance - to measure performance - to reshuffle - ; reshuffle - ; ; trigger - ( ): , trigger contract - trigger points - ,

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trigger price - , () - ,

KEY TERMS: Goal - a long-range aim for a specific period Objective - a result expected by the end of the budget cycle Standard of performance - a statement of what will occur when a responsibility is carried out well Hierarchy of objectives - a managerial concept that enables the different levels or magnitudes of decision-making within an organizational structure to be viewed in terms of hierarchy of objectives to be achieved Budget period - the time period for which the budget is compiled in an organization and against which the manager is evaluated, may be 6 months, annual, or even an 18-month rolling budget period Exercise 1. Give English equivalents: ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;

Exercise 2. Translate the following words and word combinations to go with the word performance: to be responsible for, to improve, to limit, to monitor, to reduce, to attain, to effect, to measure performance performance deteriorated, increased, improved average, actual, continuous, economic, error-free, estimated, faithful, forecasting, individual, inuse, operational, disappointing, impressive, inconsistent, moderate, patchy, poor, (un) satisfactory, steady, overall, reliable, proper, sales, standard, test, top trouble-free performance

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Exercise 3. Keeping in mind the information to go with the word performance from the Terms for study box translate what follows: 1. Care must be taken in the performance of these tasks. 2. Managers are responsible for the performance of their staff. 3. How can we improve our sales performance (= to sell more goods)? 4. The customer was impressed by the machines performance. 5. More and more companies are adopting a system of * performance-related pay. 6. This company has an annual *performance appraisal system. 7. These cars have a reputation for poor performance. 8. Highperformance cars are the most expensive. 9. The Chairman of the meeting criticized strongly the recent poor performance of the company. 10. His goes through the whole performance (= unnecessary fuss or trouble) of checking the oil and water every time he takes the car out. 11. Performance is less important than the reliability in a plane. * performance-related pay - pay in which the amount given depends on how well a person has done a job; *performance appraisal system - a meeting between an employee and a manager to assess the quality of the employees work and to plan future tasks; staff appraisal =performance appraisal Exercise 4. Study the use of words and their derivatives close on meaning to = including every detail, fact, process, or act then translate what follows paying attention to Russian equivalents: complete - having all necessary or appropriate parts; whole: a complete set/ collection/ holiday package; a complete dinner service; a complete edition of Shakespeares works(= one that includes all of them) thorough - search, examination, check etc includes everything that can be included; full - including all the important facts, information, or details (an adjective used only before a noun) comprehensive - very thorough, especially because it is important that nothing is left out and that every possible problem is dealt with exhaustive - so complete that not even the smallest detail or possibility is missed 1. Police made a complete search of the area but were unable to find the attacker. 2. This is a complete list of all British publishers. 3. Before take off, the captain ordered a complete baggage check. 4. The car was in terrible condition, but it has now been completely restored. 5. For the sake of completeness we should add these figures to the report. 6. Have you had a thorough medical check-up within the last year? 7. Since evidence of the fraud came to light, Congress has been demanding a thorough investigation. 8. The more thorough your notes, the more useful they will be for revision purposes. 9. These are principles on which the syllabus is based and every teacher should understand them thoroughly. 10. Despite the thoroughness of their research no new discoveries have been made. 11. The atlas also contains very full geographical descriptions of each country. 12. Full details of the travel arrangements will be published as soon as possible. 13. The police chief wants a full report of the accident by first thing tomorrow morning. 14. Tolstoy describes his early childhood very fully in the novel. 15. Any complaints will be fully investigated. 16. The nuclear plant was given a comprehensive inspection before being declared safe. 17. This is the largest and most comprehensive study ever made of the citys social problems. 18. We offer our customers a comprehensive service to meet all their

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needs when traveling abroad. 20. The text-book deals comprehensively with every aspect of management. 21. As a result of exhaustive inquiries the police are at last able to issue a description of the murderer. 22. The list shown here is by no means exhaustive. 23. The report has been exhaustively examined for errors. Exercise 5. Match the two columns of equivalents to go with the word comprehensive: comprehensive budgeting comprehensive concept of national income comprehensive development area map comprehensive income tax comprehensive layout comprehensive major medical insurance comprehensive personal liability insurance comprehensive plan comprehensive planning comprehensive household policy , () Exercise 6. Study the use of the idiom the nitty-gritty and make up sentences of your own with it: the nitty-gritty - the most basic and important facts of something; to get down to the nitty-gritty -to begin discussion etc. of basic practical details: 1. We didnt actually get down to the nitty-gritty (=start to talk about the most important facts) until half way through the meeting. 2. Im tired of all these vague plans - isnt about time we got down to the nitty-gritty and worked out what we can afford? Exercise 7. Translate the following as fast as you can without consulting your notes: 1. , ; standard performance trigger points, , performance data 4. , to reshuffle the companys management 5. evaluation and feedback, , to keep things on course

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 , operational planning , to ensure the efficient and effective use of the resources performance check, , to raise performance Exercise 8. Answer the questions: 1. What are the major activities in the management process? What is the significance of the circle in the management process? What are the two major kinds of planning in management? What are the key steps in the two major kinds of planning? What is so important about assigning responsibilities? Explain the significance of the controlling function? What are the two basic types of control? Why is it important to develop standards of performance? What are the major components of system for managing for results? Exercise 9. Here are the answers to the above-mentioned questions to consolidate your knowledge of the basics. Check your answers and translate them into Russian: There are three major activities: planning, controlling, and evaluation and feedback. The circle represents the cyclic nature of the process; in other words, these are the activities or steps an organization should go through continuously, usually moving through one cycle during a budget or other designed period. The two major kinds of planning are strategic and operational planning. The major outcome of strategic planning is the setting of goals for the organization. The key steps in operational planning are defining objectives and assigning responsibilities. When we assign responsibilities, we essentially break down our objectives and hand out responsibility for those pieces to various or individuals. When the assigned responsibilities are fulfilled and added up, they should equal the successful accomplishment of our objectives. Controlling enables us to make sure on day-to-day basis that our objectives will be met. The two basic types of control are management control (ensuring efficient and effective use or resources) and operational control (the detailed scheduling and procedures that become routine function). Standards of performance are the conditions that should exist when responsibilities are carried out well. Standards of performance are developed for each responsibility assigned. It follows that standards of performance successfully added together will equal the achievements of the assigned responsibility. All achieved responsibilities added together will equal the accomplishment of the objective. The major components of the system for managing for results are defining objectives, assigning responsibilities, developing standards of performance, and appraising performance.

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VI. PLANNING
Importance of planning Lets begin with an illustrative dialogue from Lewis Carroll s Alice in Wonderland: Alice: Would you tell me, please, which way I should go from here? Cheshire Cat: That depends a good deal on where you want to go. Alice: I dont care where. Cheshire Cat: Then it doesnt matter which way you go. The organization choosing the I dont care where approach may find at the mercy of multiple forces in the marketplace. Competition may overwhelm it; new ideas may replace the product; new marketing methods may make its distribution system obsolete. The organization may never reach its goals. Planning involves: choosing a destination evaluating alternative routes deciding on the specific course to reach the chosen destination. Planning is an extremely important element of each managers job, whether from the corporate view or from his or her personal, day-to-day set of responsibilities. The cost of error as a result of the old seat-of-the pants decision-making method is, in todays complex company, too expensive. Planning forces managers to sit down and think through issues and alternatives. Planning in an organization can be viewed from the different perspectives: strategic. Long-range, and operational. You should remember Planning can be described as choosing a destination, evaluating alternative routes, and deciding the specific course. Planning is a discipline that can help managers think through the issues and problems and design alternatives to address the issues and overcome the problems. Strategic planning In the strategic planning arena, the basic question is, what business is, in what business is the entity or organization (more commonly known as, "What would we like to do when we grow up?"). Some examples illustrate this type of planning. A company was, at one time, in the business of making printing presses. On reflection, members of the board of directors and the senior vice presidents saw opportunities for that company to be in the information communication business , this expanded their market dramatically in a targeted area. An organization of farmers saw themselves in the business of raising vegetables, fruits. And cattle. On looking at industry opportunities, however, they saw possibilities of being in

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convenience food business. This forced a view of consumer need and packaging and processing for the end user. A retail and catalog store changed its view from selling goods to selling goods and services. It now also focuses on the consumer's need for insurance, travel, credit card, and brokerage services, all provided by this same organization. A hospital focused, at one time, on providing medical services to an inpatient population. Recognizing that it really wanted to be medical center with significant teaching and research capabilities in addition to its patient care capability, this hospital decided to pursue becoming a medical center and sought an educational affiliation with a school of medicine. A small company was manufacturing lawn movers. The mowers were the best in the industry. Another company began catching up on the technology. Soon, the first lawn mower manufacturer was losing sales. Thinking about the business, this owner saw opportunities, not as a lawn mower manufacturer, but as a manufacturer of motors for additional motorized tools. Thus, the marketplace was introduced to weed tools, garden tillers, and hedge trimmers, and an expanded market for the manufacturer. To further describe strategic planning, let's take a look at some of its attributes: Time frame. Usually long, over five years. Basic question. What business we are in? Should we broaden or shrink our business? Process . Probably several top executives, perhaps members of the board of directors; heavy use of staff personnel and management consultants; use of gap analysis. Complexity. Many variables, because the external environment and the internal environment must be assessed; strengths, weaknesses, and opportunities are reviewed. Degree of structure. Very little structure, or a structure developed specifically for each organization. Strategic planning tends to be viewed differently by each organization depending on the culture, philosophy, and personnel within the organization. Output. A very general statement that broadly sets in writing the agreements reached in the planning process; sometimes called the Mission Statement, it states the basic purpose of the organization and what businesses it will concentrate in. In summary, this level of planning looks at the most general questions, scans the external environment to ensure that the approach is realistic, and states a broad, general direction for the organization. This direction is written and can be communicated to internal and external constituencies. You should remember Strategic planning has a long lead time and looks at the future in terms of the organization's mission. Long-range planning Let's make a simple analogy to show the relationship among the levels of planning. You have taken a map of a country and have scanned its entirety, looking for a city you would like to live in. You pick a city; this may be regarded as analogous to stating your mission - strategic planning. Stating a mission, however, is by itself not going to get you there. Issues about getting to the city, such as the amount of time and money available and types of transportation, must be developed and analyzed; choices must be made about which alternative would be most suitable and what level of resource expenditure is appropriate. This a analogous to the long-range

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planning that must be done by each organization if it is to reach its mission. Similarly, there is a third level of planning - operational planning - which is our example of a trip to the city would entail developing a more detailed plan with specific trip plans, time frames, and schedules. Additionally, if you yourself were making this trip, you would make plans to ensure that your car is ready, your clothing packed, and your personal schedule arranged for the trip. Each of these levels of planning contributes to achievement of the overall mission. In an organizational setting, the attributes of long-range planning can be stated as follows: Time frame. Shorter than strategic planning; usually one to five years. Basic question. What are the major components of our business? Are there specific areas of concentration during this time frame? Process. Top executives who participated in formulating the strategic plan must be involved; additionally, chief division managers of those senior line officers responsible for the organization are involved. The corporate mission is reviewed, and all long-range plans fall under this umbrella. Complexity. Although complex, there are fewer variables than in strategic planning since the mission has been stated. A variety of data sources, such as financial returns, market conditions, and organizational resources, are considered. External data are re-reviewed. Degree of structure. Some structure, in terms of existing policies and the current organizational assets (people, facilities, and way of doing business), exists. Output. Called by many names (e.g., strategic guidelines, long-range plan, targets of opportunity, the five-year plan), this level of planning results in written guidelines generally covering at least the following areas: Basic areas of the business. What products or services are planned? Financial objectives, including such as sales growth, profit growth, expected return on investment, and financing sources. Market opportunities in terms of segments of the target population as well as geography. Management organization. This involves asking difficult questions about labor and the ability to carry out the plan. Physical facilities. To carry out a plan, additional (or fewer) facilities may be needed. This question must be assessed in conjunction with financial objectives. Time frame for the next review. Long-range planning should be reviewed periodically, at least every two years, or more frequently if major unanticipated changes occur. These may include major changes in a law or regulation or a competitive product being introduced. This middle level of planning can be viewed as the bridge between strategic planning and day-to-day operational planning. You should remember Long-range planning has a shorter time frame than strategic planning and looks more specifically at such variables as market conditions, financial objectives, and the resources necessary to accomplish the mission. All long-range planning is done within the framework of the strategic plan.

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Operational planning In an organizational setting, operational planning ensures that the right combinations of resources are available at the right time to produce the good or service for the target customer. It attributes can be stated as follows: Time frame. Generally one year or less; could be monthly. Basic question. What specific tasks must be done to achieve the results stated in the long-range plan? Process. Generally headed by senior division chiefs who participated in the long-range planning process, this process involves executives in each unit or division. These will also be the people responsible for achieving the plans targets. Complexity. Generally, more specific variables are included in the operational plan. These may include such areas as a time-related market forecast for each product, along with a budget for each product; amounts of resource necessary for production of each product are also included. Degree of structure. Of three levels of planning, this is the most structured since systems for business planning tend to exist in organizations. Budgeting and financial forecasting are examples of these systems. Output. The operational plan takes into account: Assumptions for the period. Are there any labors stoppages, material shortages, or changes in costs of resources? In-house changes that need to be made. Do new facilities need to be acquired? Are inside labor and policies in need of change? Production and timetables. How much product or service will be produced, and in what time frame? Responsibilities. Who is the person with responsibility for each of the major elements? Budget. What is the operational and/ or sales budget. The operational plan differs from organization to organization but in all cases provides enough documentation and data to be reviewed by the corporation from a marketing and financial viewpoint and be integrated into the overall corporate operational plan. You should remember Operational planning has an even shorter time frame than long-range planning. It is the day-to-day planning that addresses specific timetables, tasks, and measurable targets and involves managers in each unit who will be responsible for achieving the plans targets. In general, there are three levels of planning, each with some overlap, but each providing a different level of detail and time framework. No two organizations planning philosophies or processes are alike, but each organization and each individual manager, either by design or default, does planning.

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The plan for planning A strategic plan, or planning process, does not simply occur by decision of the chief executive officer or the board. Planning takes time and effort. In order to be successful, the planning process also needs to be planned for. For strategic and long-range planning, the entire organization did not have to be involved. However, enough overlap among the levels was important. The organization for planning was developed to incorporate this principle and ensure consistency and communication. Note the heavy use of staff in this process. Typical tasks of staff are: Gathering data that are sometimes very obscure, analyzing data; Documenting the results of the Planning Committee meetings to ensure consistency of information; Developing fast-paced and accurate agendas in preparation for Planning Committee meetings. The objective is to have the correct data and analyses prepared for decision making by busy members of the Planning Committee of the Board. Planning continues in the sense of reviewing the mission, evaluating threats and opportunities in the environment, and reviewing specific actions for each year. The planning itself provides a context, consistency, a method of communicating data and decisions to each level of the organization. The main points of the Business Plan Although there is no single model for a successful business plan, there is general agreement that a plan should have an executive summary, cover certain business fundamentals, be well-organized with headings, be easy to read, and be no more than about 20 pages in length. The basic items that should be included in a business plan: Executive summary - overview of business purpose and highlight of key elements of the plan; Industry analysis - nature of the industry, including economic trends, important legal or regulatory issues, and potential risks; Company description - mission, owners, and legal form; Products and services description - major goods or services, with special focus on uniqueness vis--vis competition; Market description - size of market, competitor strengths and weaknesses, five-year sales goals; Marketing strategy - product characteristics, distribution, promotion, pricing, and market research; Operations description - manufacturing or service methods, supplies and suppliers, and control procedures; Staffing description - management and staffing skills needed and available, compensation and human resource management systems; Financial projection - cash flow projections one to five years; Capital needs - amount of funds needed to run business, amount available, amount requested from new sources.

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Planning is tailored for each organization. Although the basic concepts are the same, each organization's culture and philosophy will result in a slightly different set of priorities. Levels of involvement and a consistent method of communication are critical to success, as is heavy use of staff in the planning process. Terms for study: affiliation - chief executive officer - 1. ( ) 2. - ; corporate - ; ; corporate management - ; corporate manager - distribution system - data (pl.) - , , guidelines (pl.) - [] ; to entail - ; obsolete - 1. , ; 2. , output planning - 1.; 2. planning, organizing, staffing, directing, coordinating, reporting and budgeting - (, , , , ) planning committee (group) - [] planning manager - planning department - planning director - planning analyst - planning act - planning and allocation of resources - planning under dynamic conditions - planning under uncertainty - advanced, forward planning - budget planning - business planning - calendar production planning - - currency planning - financial, fiscal planning - long-term, long-range planning - manpower planning - manufacturing, production planning - management planning -

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operational planning - short-range, short-term planning - strategic planning - state planning - system planning - return - ; ; ; ; ; term - 1. , 2. 3. 4. in terms, in terms of - , , , , to overlap - ; variable - ; economic variable - planning variable - KEY TERMS: Planning - the process of determining organizational goals and how to achieve them Strategic planning - planning for the direction of an organization and all its components. It addresses the mission of the organization in terms of its main business. Outputs of strategic planning include broad, general guidelines for selecting business areas of markets to enter or withdraw. Long-range planning analyzes alternatives to achieving the mission; outputs are usually targets of opportunity within the industry or market. Operational planning - or day-to-day planning, addresses specific timetables and measurable targets Exercise 1. Study the text and find synonyms for the following: in association with, facts and figures, out of date, to be in charge of, to reach the goals, to foresee, project, obstruction, deficit (lack), to direct, landmark, to stipulate, to make plans, by and large, in conclusion, long lasting, in addition to, way of thinking (point of view), structure, schedule, to lead to (to result in), thriving and flourishing business, the whole organization, to take place, to assess the threats, the personal, to work out a business plan, short-range planning Exercise 2. First, study the information below on some phrasal verbs and expressions with to think then translate what follows: to think back (to) - to recall and reconsider (something in the past): remark, statement, occurrence, change, development, time, moment; , to think of - to consider, to weigh something: effect, outcome; , .. to think better of - to reconsider (a possible action) and decide not take it: action, step, invention; never/not think of - not allow (a particular idea) as a possibility;

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to think nothing of - not regard something as important, significant or unusual: affair, friendship, connection; , to think nothing of it - a politely reassuring remark to somebody who feels he has behaved rudely; , to think out of - 1. to understand or perceive 2. =to think over, to work out; to think over - to review (past events) in ones mind; to consider carefully something that may affect the future: events, happening, things, offer, suggestion; ; ; to think through (=to think out, to think over) - to consider something very carefully, taking into account of all difficulties or obstacles: problem, question, project, scheme, proposal, the whole thing; () to think up - to invent, to devise something: idea, scheme, plan, story, excuse, apology; ; ; 1. Now that weve thought the matter through, can we come to a conclusion? 2. Think it over and let me have your decision tomorrow. 3. All possible ways out of our difficulty have now been thought out. 4. Can you think of a good person to become the next chairman? 5. What do you think of the management companys latest action? 6. Weve thought the plan over and decided not to join it after all. 7. I thought back of few years to the occasion when the issue was discussed. 8. Hes a wonderful organizer: he thinks of everything in the company! 9. Hed clearly thought better of intervening in a situation which was already highly charged. 10. Why dont you let me pay for the meal? I wouldnt think of it! 11. Some would have thought these large transfers of money highly suspicious, but at least his colleagues thought nothing of it. 12. Im sorry if I interrupted your discussion. Oh, thats all right. Think nothing of it. 13. With the beginning of a new day he had to think things over again, reconsider his position in the company, see where he was now. 14. We had thought the plan over, it was important that he would think it had been his idea. 15. Im grateful for your offer, but I shall need a day or two to think it through. 16. The whole scheme needs to be thought through very carefully before we agree to back it. 17. There were one or two fellows in the company who thought up ideas of their own. 18. He would have to think up some more catchy names for these designs. 19. He offered some quickly thought-up pretext for not coming to the meeting. 20. Its one of those competitions where you have to think up a slogan for a product. Exercise 3. Translate the following text then summarize expanding on the topic: - , . , . . , , , . , , 62

. . . Exercise 4. Give the Russian equivalents of the following: , , , , , , , , , , , , , , , , (, , , , ) Exercise 5. Study the use of the phrasal verb to catch up on and translate what follows. Find it in the text and give the correspondent Russian equivalent: to catch up on - 1. to make special efforts to do something which has been left undone or neglected; object: reading, studies, paperwork, correspondence, sorting, tidying, cleaning 2. to get up-to-date with something: the latest news, recent developments, the latest fashions, new thinking in something (informal) to arrive and begin to change the outlook or way of life of somebody; (of something done in the past) to begin to affect somebody now Translate the following: 1. The secretary had to work in the lunch hour to catch up on her neglecting filing. 2. I must stay in this weekend: Ive so much exam making to catch up on. 3. He hardly had time to catch up on outstanding work before going into hospital. 4. I wanted a full account, from start to finish, there was so much to catch up on. 5. These are clothes that you can make from fabulous American patterns - but if you dont sew you can still catch up on new fashion pointers from across the Atlantic. 6. Marriage has caught up on her, she explained after some hesitation and a little smile that made me think I ought to sympathize. 7. I think his past is beginning to catch up on him. 8. You have some work to catch up on! Exercise 6. Study the use of three modern idioms with the word mercy then translate what follows. Find into the text one of these idioms: to be at the mercy of something/somebody - to be in a situation in which you cannot do anything, to protect yourself from something or someone unpleasant; c , - to be thankful for small mercies - to appreciate the small benefits, advantages which are assisting on in generally difficult situation; to be pleased that a bad situation is not even worse; One must be thankful for small mercies -

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to throw yourself on/upon somebodys mercy - to ask someone to help you or to forgive you when you are in a difficult situation; to beg someone to help you or not to punish you; - 1. Poor people are increasingly at the mercy of money-lenders. 2. Of course, in a tent, youre at the mercy of the elements. 3. If all else fails, I might throw myself on Sandras mercy and see shell drive me there. 4. At last he had his competitors at his mercy. 5. Someone stole my handbag with all my money in it, but my car-keys were in my coat pocket, so I suppose I should be thankful for small mercies. 6. The were lost at sea, at the mercy of wind and weather. 7.His lawyers advised him to throw himself on the mercy of the court and hope for a *lenient sentence. *lenient sentence - ( ) Exercise 7. Study the vocabulary below. Read the text, translate it and summarize keeping close to the text: bottleneck - 1. ( ) 2. [] (- ) 3. capital - () ; planning department - ; planning function - on a corporate level - planning area, sphere - project management - pending legislation - , insatiable - , to take (to get) credit for - , - the critical path method (CPM) - the project evaluation and review technique (PERT) - , The planning function on the corporate level and on each managers level Corporation is an organization that has legal recognition and is made up of people whose rights and responsibilities within the corporation are separate from their rights as individuals; a large group of companies. Corporate planning is the process of deciding and making report on the future activities of a company for a certain period, usually several years. The aim is to increase sales and profits, develop new products and enter new markets. Planning in an organization is done on a corporate level and on lower individual levels with each manager planning for his or her unit. Each level of planning requires time and effort on the part of the manager or executive. Planning also demands data and analyses. Busy line executives may have an insatiable desire for data but very little time for in-depth analyses. These analyses in the corporate planning sphere can be and are often performed by a corporate planning department or function. The planning department can also facilitate each of the planning processes by ensuring that appropriate data and analyses are available in a timely fashion. For example, at the strategic

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level, data on the external environment - new technology, pending legislation, licensure of a competitor, potential sources of competition, long-term market and economic trends - can be made available to the planning task force. Data on, say, next months planned production would be inappropriate for the strategic planning effort but may be appropriate in assisting departmental managers in their planning efforts. The corporate planners do not actually do the planning, nor do they take any credit for the planning. They coordinate, facilitate, and provide staff support for line executives. In addition to corporate planning, each manager plans in his or her day-to-day job. Planning is not the responsibility only of the division chief, plant manager, or head of department. Each manager must think ahead and estimate time, people, capital , and raw material resources necessary for providing the production of the goods and/or services for which he or she is responsible. Several planning tools can assist in this process. Among them are scheduling techniques, the critical path method (CPM) of analyzing the events and time frames that are potential bottlenecks to achievement of the desired result, the project evaluation and review technique (PERT), which displays all tasks and time frames from start to finish, project management, which allows a manager to phase a project from idea to implementation, and stimulation models depicting various options or what ifs. To sum up: planning is every managers job as well as a corporate function. A corporate planning department may gather data, analyze it, and make it available to line executives and all managers who do the day-to-day planning to phase a project from idea to implementation. Many tools and techniques exist to assist in planning. Exercise 8. Give the corresponding English equivalents from the text: ; ; ; ; ; ; ; ; , ; ; ; ; , ; ; ; Exercise 9. Translate the following explanatory sentences paying attention to the Russian equivalents to go with the word terms: 1. We will have to discuss your terms (=conditions which control an agreement, arrangement or activity) of employment. 2. The terms of the contract are not negotiable. 3. We bought this car on favorable (reasonable) terms (=we paid a reasonable price for it). 4. Consider it in terms of (=as) an investment. 5. If you bring someone to terms , you force them to accept. 6. The United Nations tried to bring the warring sides to terms to put an end to the war. 7. If you come to terms with someone, you agree with them about something. 8. We will have to come to terms with him about how many hours a week he is going to work for us. 9. If you come to terms

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with something unpleasant or difficult, you learn to accept it and deal with it. 10. He has to come to terms with his wifes illness and says he will nurse her at home. 11. If you talk about something in particular terms or in terms of something, you use it to make clear which particular area of a subject you are discussing. 12. A 200-year-old building is very old in American terms (=in terms of American history). 13. If you are thinking/talking in terms of doing something, you are considering doing it. 14. Im thinking in terms of retiring next year and traveling overseas. 15. If you want buy something on easy terms, you pay for it over a period of time. 16. If you do something on your own terms, you decide the conditions under which you will do it, because you are in a position of power. 17. If two people are treated on equal/on the same terms, they are treated in the same way. 18. We cant work on equal terms unless we speak a common language. 19. If two people are on good/bad terms, they have a good/bad relationship with one another. 20. Ive always been on good terms with my neighbors. 21. Terms of reference are the matters to which a study or report is limited. 22. Working hours were within our terms of reference, whereas rates of pay were outside our terms of reference. 23.(Am) Terms of reference are ideas or experiences which people use to make decisions. 24. He is always concerned about money - finance in his only terms of reference. Exercise 10. Consult a dictionary and give the Russian equivalents for the following to go with the word term(s). Make up sentences with some of the expressions: , , , , ( ), , , , , , , , , , , , , , - , , , , , , , , , , , (), , , , , , , Exercise 11. Give Russian equivalents to go with the word terms (=conditions): to accept, to agree, to arrive to, to be bound by, to break, to comply with, to dictate, to disagree about, to fix, to keep to, to lay down, to name, to negotiate, to obtain, to outline , to observe, to offer, to reject, to set out, to settle, to spell out , to stipulate, to stretch payment terms, to specify, to sell on easy terms, to hold to terms, to define terms acceptable, agreed, attractive, basic, cash, commercial, credit, competitive, current, easy, equal, exact, exacting, fair, (un)favorable, flexible, financial, general, generous, inequitable, initial, insurance, legal, local, harsh, political, preferential, purchase, rigid, (un)satisfactory, standard, stiff, strict, technical, trading, tough, unacceptable, unequal, uniform, usual terms to describe something in abstract/blunt/clear/general glowing terms; in uncertain terms

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Exercise 12. Give a consistent presentation on the topic "The importance of the Business Plan for every organization" using the linking words and word combinations at your option: (needless to say, undoubtedly, beyond doubt, in reality, as a matter of fact, in fact, in effect, by no means, it is true that, there is every indication that, apparently, presumably, possibly, it is assumed that, there is a reasonable chance that, it is common knowledge, it is widely believed that, in the first place, fundamentally, basically, in a general(broad) sense, not to mention, to say the least, to put it in another way, to be more precise, more specifically, in terms of) Exercise 13. Answer the questions giving a full coverage on the matter: What are the three levels of planning? Once a plan is developed, it is generally carried out exactly as developed. True or false? Name some tools or techniques that may assist the manager in planning. Planning is done by senior managers in an organization; the middle-level manager does not get involved in planning. True or false? What outputs typically result from each level of planning? Define planning as a management function. Exercise 14. Check your answers and translate the sentences into Russian: The three levels of planning can be termed strategic, long-range, and operational. False. Plans are reviewed periodically to ensure a fit with environment/ Operational plans are usually reviewed under/or revised most frequently, such as monthly or yearly, but strategic plans may be reviewed and/or revised only every several years. Some commonly used planning techniques or tools include critical path methods, the project evaluation and review technique, and project management and simulation models. The statement is partly false. It is true that planning is done by senior managers; most typically strategic planning involves a small number of very senior executives, such as the president and members of the Board. Long-range planning may involve division chiefs. The statement that middle-level managers do not get involved in planning is false. Operational planning typically does involve middle-level management. Additionally, it is important to remember that planning is a crucial part of every manager's job. The output of strategic planning is usually a mission statement, which expresses in every general terms the basic business of the organization. The output of long-range planning is a statement of guidelines regarding how the mission will be achieved. Operational planning output is usually a one-year (or less) plan for deployment of resources within the long-range and strategic planning framework. Planning, simply defined, is the process of defining an organization (that is, what business we are in); determining where it wants to go (that is, choosing a destination); and addressing the alternatives to that end (that is, deciding the specific course). Exercise 15. Draw up a plan and expand on the following keeping to it: 1. Strategic planning 2. Long-range planning 3. Operational planning The planning function on the corporate level and on each managers level

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VII. BASIC PRINCIPLES OF ORGANIZING

The process of organizing is essentially the same for all types of businesses. Once objectives and plans have been formulated , management must develop an orderly way to bring together the physical and human resources that are essential to accomplish the goals of the enterprise. This task is referred to as the organizing function of management. In studying the structure of a company, it is also important to keep in mind the definition of organization: the entity that makes it possible for a group or team to work together more effectively than they might work alone in order to achieve to achieve goals. No single individual can be expert in every specialty of the organization or do everything. Therefore, the manager must analyze the strengths and weaknesses of the team, balance their talents, and add competencies where necessary. It is also important that people know their responsibilities, the authority they have, and what they are trying to accomplish. In our total effort we should also keep in mind the relationships among the functions of management: planning, organizing, staffing, motivating, leading, and controlling. Why organize? We organize for the purpose of reaching our goals and objectives. These goals and objectives, of course, should marketing oriented. A business exists for the purpose of serving customer needs and wants. Therefore, the structure of the business should take its primary direction from the market place. Tell me what business you're in or wish to be in, and I will tell you how to structure your business. This is a sound principle for organizing. It is based on an organization's plan or strategy and the concept that structure follows strategy. Strategy comes primarily from the product or market scope of the business. Although marketing is to be in the forefront in organizing a business, we must make certain that the other functions do not suffer. The market plan alone, without supporting elements, is of little value. There should be little argument at this point that planning is the first function of management, it is necessary to organize. If we do not have a plan, we cannot really establish objectives; if we have no objectives, we have no reason to organize. In other words, if we do not know where we're going we do not know how to organize to get there. Planning and organizing are the integrated responsibilities of the manager. Because an organization typically has a growth plan , it should be recognized that structure should be developed over the long term and is subject to change. Sometimes the impact of change to change. Sometimes the impact of change is not recognized, yet it is one of the reasons that planning and organizing are so intimately related, each an integral part of the other. Planning helps to quickly evaluate the impact of change when crises occur. Organizing in accordance with your plan or strategy and making use of the formal (i.e., official organizational structure, consisting of responsibility, authority, and accountability), as well as the informal organization, which consists of informal relationships deriving mainly from politics, power, and status, also helps us manage change effectively.

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You should remember We organize for one purpose - reaching our goals and objectives. These objectives should come from the market place, that is, to satisfy a customer need or want. Structure follows strategy is a sound concept for organizing. The primary function of management that supports organizing is planning. Basic concepts Organization is a process that takes place as a form of planning. It is not an end in itself. We go into business, not to have an organization, but to serve a process- basically to satisfy some customer need or want. We then develop a plan to achieve that purpose and create an organization structure to implement that plan. The basic concepts in organizing, identifying, and defining the work to be performed to accomplish the objectives of the enterprise. If this process is done properly, it will result in some logical grouping of work and a means for individuals to cooperate effectively in achieving objectives. In organizing, we must first agree on the work to be performed. This is known as unity of purpose in organizational terms. Second, we must decide what has to be done to achieve the purpose, what functions must be performed, who will carry them out, and what authority they will have to accomplish the work. This aspect is known as division of labor. Third, the type, number, and experience of individuals who will implement the work must be performed. This is staffing. Finally we develop the structure or organization framework that will provide for effective teamwork in terms of reporting relationships - chain of command and flow of information. Moreover, management should make a strong commitment to make the organization work in terms of getting things done effectively through others, our working definition of management. The organizational structure is the vehicle to make this happen. As managers we should work within the structure, for we are what we do . If we do not practice what we preach in terms of sound management principles, our employees will find ways to bypass the structure and therefore the organization may not be as effective as it might be. The organization includes the following connected stages: Levels of management - vertical layers of management Supervisory relationships - lines showing who reports to whom Major sub-units - positions reporting to a common manager Division of work - positions and titles Communication channel - formal communication flows You should remember: Organization is not an end in itself. It is a process that takes place as a form of planning. The basic concepts in organizing are analyzing, identifying, and defining the work to be performed to accomplish the objectives of the enterprise. A unit of purpose, a division of labor, and a staff and an organizational framework must be developed.

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Guidelines for organizing Some guidelines that should be followed in all companies in terms of organizing are as follows: Be aware of the impact of change on people as well as on structure. As you change your strategy or plan, your policies, practices, programs, procedures, and so forth may also be affected. Hence, changes will also have to be made within many parts of the organization. Involve your people in any change so that they will understand its impact and how it affects them. Consequently, they will be more committed to make the change succeed. Keep your structure lean and simple. Try not to develop too many levels for approval and review. Also, avoid whenever possible overburdening or underburdening any one individual or group with tasks and responsibilities. The span of control, the number of subordinates the manager can finish his or her own work and still develop, counsel, motivate, and control twelve people effectively, then the span of control is 12. Once the ideal structure has been developed, fit your people to it as well as possible. In other words, approach your structure from a '' personnel available" point of view. You cannot report to two people at the same time about the same work and satisfy either of them. This principle is known as the unity of command. In the early days of organization, this principle was easy to follow. Today it is more difficult, with the upsurge in the numbers of staff positions and as organizations have grown in size and complexity. Yet as a principle or guideline for organizing, it should be followed whenever possible. Write down a description of the work. This is the principle of definition. Some people find position descriptions to be an unnecessary hassle. They claim that their people know what to do; they know the work. What's all this paperwork for? If you feel this way and you don't have position descriptions in your organization, try a brief experiment. Write down the work (responsibility) and authority that you think one of your employees is accountable for. Ask that person to do the same. Then compare the two. In most cases, the results will read like two different jobs. You should remember: In organizing, be aware of this impact of change on people and structures; keep the structure lean and simple; fit people as well as possible to the ideal structure; have people report to one boss; and write down the definition of work to be performed (the position description). KEY TERMS: Organizing the process of developing an orderly way of bringing together the physical and human resources that are essential to accomplish the goals of the enterprise Organization the entity that makes it possible for a group or team to work together more effectively than they might work alone in order to achieve goals Organization chart a schematic representation of the manner in which work is arranged and related so it can be performed Division of labor the division of work and functions into smaller activities Span of control the number of subordinates a manager can supervise effectively

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Unity of command an employee should have one and only one immediate boss Terms for study: definition - ; problem definition - definition of quality - division of labor - formal organization - framework - ; ; ; ; framework agreement - ; framework directive - framework supervision - ; informal organization - organization - 1. ; 2. , to organize - , , organizing - organizing function - ( ) span of control - 1. 2. ( ) staffing - staff - ; ; ; () ; to appoint staff - to be on the staff - to be short of staff - to dismiss staff - to replace the staff - to staff - ; strategy - ; ; ; ; structure - 1. ; 2. ( plural ) to structure - lean - ; ; ; marketing - 1. ; ; ; 2. ( ) marketing activities - marketing agreement - marketing analysis - marketing audit - ; marketing board - 1. . ; 2. . 3. marketing campaign - marketing environment - marketing organization -

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orderly - 1. ; ; 2. ; ; orderly market conditions - to overburden - , unity of command - unity of purpose - upsurge - ; ; upsurge in production - Exercise 1. Translate the following: a) ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; b) to formulate objectives and plans; to bring together the physical and human resources; guidelines for organizing; division of work; supervisory relationships, to set direction; to ensure results; evaluation and feedback; organizing to create structures; dividing up the work; to arrange resources; to coordinate activities; to study the structure of a company; to be more committed to make the change succeed; to avoid overburdening or underburdening tasks; to keep ones structure lean and simple Exercise 2. Supply objects for the following verbs and word combinations: to formulate, to bring together, to keep in mind, to achieve, to analyze, to accomplish, to add, to reach, to serve, to come from, to establish, to go into, to develop, to identify, to achieve, to agree on, to bypass, to be aware of, to affect, to perform, to involve, to be oriented towards Exercise 3. Lets explore a wide aspect of the idea of the word organization which expresses a different idea, make up sentences with each meaning under consideration. Translate the words. Each line starts with the keyword: 1.composition - constitution, setup, make-up order - state of order, tidiness, neatness arrangement - reduction to order, ordering, disposition, disposal production - producing, creation, origination, invention, innovation structure - organization, pattern, plan, complex plan - scheme, design, planning, organization, systematization, centralization conduct - behavior, deportment, bearing, comportment, attitude, posture 72

management - conduct of affairs, running, handling, managership, agency corporation - body, company, joint-stock company, limited liability company, public limited company, dot com company, holding company, multinational company, firm, concern, partnership, business house, establishment, organization, institute, trust, combine, monopoly, cartel, syndicate, conglomerate Exercise 4. Give Russian equivalents to go with the word structure: to alter, to build, to change, to create, to coordinate, to demolish, to design, to destroy, to develop, to devise, to dismantle, to erect, to examine, to improve, to expand, to modernize, to improve, to modify, to overhaul, to plan, to prop up, to put up, to restore, to slim down, to strengthen, to study, to undermine, to weaken structure appropriate, basic, chaotic, clumsy, colossal, compact, complex, cumbersome, damaged, dangerous, dilapidated, effective, efficient, firm, (in)flexible, flimsy, gigantic, highly developed, huge, ideal, imposing, intact, interior, intricate, lopsided, massive, modern, monolithic, obsolete, permanent, temporary, unstable, vast, unwieldy, weak, whole structure Exercise 5. Consult a dictionary then give English equivalents to go with the words strategy, upsurge and marketing: strategy , , , , , , , , , , , (), , marketing

, , , , , , , (orderly marketing), , , , , , , upsurge , , , ,

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Exercise 6. Translate the following text then summarize condensing it: Marketing are the actions of identifying, satisfying and increasing the buyers demand for a companys products; part of a company that deals with this. Marketing is the process of getting customers to buy a firms products. This involves making arrangements for distribution and advertising current products. It also covers market research to discover likely customer reaction to potential new products, and whether possible modifications to existing products would improve their appeal. In the long run no amount of marketing skill can sell products customers do not like, but poor marketing can make a product fail even though consumers might have liked it. Marketing audit is a detailed inspection of the strengths and weaknesses of the marketing activities of an organization. Marketing environment is the combination of factors that affect a companys sales in a particular area or country. These factors include changes in government policy, in peoples levels income, the development of new technology or transport systems and the activity of rival firms. Marketing plan is a detailed report that shows how a company or a department will maintain and improve sales in a certain area. This is done through pricing and promotion, and by marketing changes within the company to respond to changes in the market and the activity of rival firms. Exercise 7. Study the use of the phrasal verb to bring together then translate what follows: to bring together - 1. to reconcile (two parties in conflict) , ; 2. - 3. - ; - Bring the broken edges of the plate together exactly where they were and then glue them carefully. 2. The Minister is trying to bring the two sides together to discuss a new peace project. 3. The competitors of the company have been brought together for peace talks. 4. The companys management was satisfied with the fact that the customers had been brought together after all their quarrels. 5. What brought them together was their unanimous position on this matter. Exercise 8. Explain the difference between a strategy and an objective. Is the statement true or false? A strategy is a particular plan which management might decide to adopt in order to achieve its aims or objectives. (T/F?)

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Exercise 9. Translate the following sentences paying attention to the italicized word combinations then match the two columns of the corresponding equivalents: (growth-rate, product range, product-line, resources, share, production capacity) sales revenue, productivity, market

1. A well-known advertising agency aims to achieve a growth rate of 20% a year. This product-line is unprofitable. Well have to discontinue it. Companies like Unilever and IBM have huge financial resources. By re-organizing the work of office staff, you can often increase their productivity. Were a small firm, so we arent able to offer a wide product range. Most of Shell Oils sales revenue comes from overseas subsidiaries. By extending our factory, we have been able to expand our production capacity. 8. With help of their cheap, high-quality word-processor, the Amstrad company were able to greatly increase their market share in the UK. 1. product range 2. product line 3. production capacity 4. productivity 5. growth rate 6. market share sales revenue resources a) ; b) ; c) e) , , ; f) ; g) h) i) () Exercise 10. Study this organization. Which department: puts the products in boxes and crates? places advertisements in magazines? pays the staff? purchases supplies? sells the products to customers? plans how to sell new products? services the machines and equipment? arranges courses for the staff? recruits new employees? manufactures the products? invoices customers? looks after customers problems and complaints? 75

dispatches the products and sends them to customers? organizes control systems to prevent mistakes? deals with taxation, investment, and cash management? Human resources > Training> Personnel>Wages and Salaries Production > Production > Packaging > Distribution > Quality > Maintenance Marketing > Marketing > Sales > After-Sales Service > Advertising Finance > Buying > Customer Accounts > Financial Services Exercise 11. Speak on the topic What is your companys main strength and weakness. Prepare to make a short presentation about a companys weaknesses basing on the companys strengths: We produce high quality products. We provide a high quality service. We use the most advanced technology. We are in close contact with the market. We produce a wide range of products. We invest a lot of money in research and development. We have sales representatives all over the world. We are market leaders. Exercise 12. Using the information below make up sentences with the word combinations to go with the word mind: mind - , , Usage: to make up (change) ones mind mind : he made up his mind, they made up their minds a quick (slow, keen, brilliant, great) mind - (, , , , ) to my mind - to make up ones mind - () to change ones mind - to have something on ones mind - - to come to ones mind - to keep something in mind - ,

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to develop ones mind - he has a good mind - travel broadens the mind - it never entered my mind - the name has gone out of (slipped from, escaped) my mind completely - a brilliant idea came to his mind - Exercise 13. Using the information below make up sentences with the word combinations to go with the verb to keep: to keep something at the disposal of a person - - - prices keep steady - prices keep rising, falling - , to keep an account - to keep books - to keep back - ; ; buyers are keeping back - to keep to - -; -; to keep to a price - to keep to the terms of the contract - to keep up - , ( ) prices keep up - Exercise 14. Translate as fast as you can without consulting your notes. Compile sentences or a small connected text with the following word combinations: to bring together the physical and human resources to keep in mind the companys needs to keep ones structure lean and simple to be accountable for the unity of command span of control to be short of staff marketing agreement upsurge in production problem definition marketing analysis orderly market conditions Exercise 15 . Answer the questions: What is involved in the organizing function of management? Why do we organize? Why is planning the first management function that is necessary to organize? What is meant by "structure follows strategy"? What are the basic concepts in organizing?

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What is unity of purpose in organizational terms? What is meant by division of labor? What is meant by structure? What are some guidelines for organizing? What is meant by the unity of command principle? Exercise 16. Check your answers and translate the following: Organizing is the process of developing an orderly way for bringing together the physical and human resources that are essential to accomplish the goals of the enterprise. We organize for the single purpose of reaching our goals and objectives. If we do not have a plan, we cannot really establish objectives, and if we have no objective, we have no reason to organize. In other words, if we do not know where we are going, we do not know how to organize to get there. "Structure follows strategy" means that your structure or organization should be developed from your plan or strategy, which comes from the product or market scope of the business and is oriented toward serving specific customer needs and wants or product or market segments. The basic concepts involve analyzing, identifying, and defining the work to be performed to accomplish the objectives of the enterprise. Unity of purpose is agreement on the work to be performed. Division of labor is the division of work and functions into smaller activities. Structure is the organizational framework that will provide for effective teamwork in terms of reporting relationships and ensuring the flow of information. Guidelines for organizing include the following: be aware of the impact of change on people as well as on structure; keep your structure lean and simple; fit your people to the ideal structure as well as possible; and write down the description of the work. The unity of command principle means you cannot report to two people at the same time about the same work and satisfy either of them; it also means that an employee should have one and only one immediate boss.

CONTENTS

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MANAGEMENT: DEFEINITION AND OVERVIEW MANAGEMENT DECISION-MAKING: TYPES, LEVELS STYLES DECISION-MAKING PROCESS UNDER DIFFERENT CONDITIONS STEPS IN THE DECISION-MAKING PROCESS AN OVERWIEW OF THE FUNCTIONS OF MANAGEMENT PLANNING VII. BASIC PRINCIPLES OF ORGANIZING

3 10 33 39 46 55 68

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