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MINSK 2011

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English for Managers : : 1-26-02-01 -, 1-26-02-05 / -: . . , . . . , 2011. 218 .

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LEAD-IN 1. In groups discuss the following questions. 1 What is management? Is it an art or a science? An instinct or a set of skills and techniques that can be taught? 2 What do you think makes a good manager? Which four of the following qualities do you think are the most important? A. B. C. D. E. F. G. H. I. J. K. L. M. being decisive: able to make quick decisions being efficient: doing things quickly, not leaving tasks unfinished, having a tidy desk, and so on being friendly and sociable being able to communicate with people being logical, rational and analytical being able to motivate and inspire and lead people being authoritative: able to give orders being competent: knowing one's job perfectly, as well as the work of one's subordinates being persuasive: able to convince people to do things having good ideas being highly educated and knowing a lot about the world being prepared to work 50 to 60 hours a week wanting to make a lot of money

Are there any qualities that you think should be added to this list? 3 Which of these qualities can be acquired? Which must you be born with?

READING Text 1. 2. DEFINITION OF MANAGEMENT. ITS NATURE AND PURPOSE Read the text and find answers to the questions.

DEFINITION OF MANAGEMENT. ITS NATURE AND PURPOSE We define management as the process of designing and maintaining an environment in which individuals working together in groups, accomplish efficiently selected aims. This basic definition needs to be expanded. 1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading and controlling. 2. Management applies to any kind of organization.

3. It applies to managers at all organizational levels. Management applies to small and large organisations, to profit and not-for-profit enterprises, to manufacturing as well as service industries. The term enterprise refers to business, government agencies, hospitals, universities, and other organizations. Effective managing is the concern of the corporation president, the hospital administrator, the government first line supervisor and the like. Managers are charged with responsibility of taking actions that will make it possible for individuals to make their best contributions to group objectives. The scope of authority held may vary and the types of problems dealt with may be considerably different. But all managers obtain results by establishing an environment for effective group endeavour. Top-level managers spend more time on planning and organising than lower-level managers, Leading takes a great deal of time for first-line supervisors. The aim of all managers. In a very real sense, in all kinds of organizations, whether business or nonbusiness, the logical and most desirable aim of all managers should be a surplus managers must establish an environment in which people can accomplish group goals with the least amount of time, money, materials and personal dissatisfaction1, or where they can achieve as much as possible of a desired goal with available resources. In a nonbusiness enterprise, such as a police department or hospital, that are not responsible for total business profits, managers still have goals and should strive to accomplish as much as possible with available resources. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. How is management defined? What kind of process is it? How can this definition be expanded? What kinds of organisations does management apply to? What does the term "enterprise" refer to? What is the main responsibility of managers? What types of problems do they deal with? What is their scope of authority? How can managers obtain good results? How do managerial functions differ on different levels of management? What is the most desirable aim of all managers? What should they do to achieve this aim? How should they strive to accomplish their goals? What is a nonbusiness (not for profit) enterprise? How should managers at nonbusiness enterprise accomplish their goals

Text 2.


4. Read the text and decide which of the following comments you would expect the writer to agree with. Use the text to support your answers. Successful managers 1. start directing and controlling activities long before planning, coordinating and staffing;

2. should always find time for planning; 3. are reluctant to change their plans; 4. allow their employees to contribute to plans; 5. ignore what is going on outside their departments; 6. have the authority to enforce assignments and decisions, 7. understand that the attainment of goals must be the reason for any cooperative activity; 8. participate in recruiting applicants and hiring employees; 9. praise and promote their staff; 10. can handle any number of people; 11. set an example for their employees to follow; 12. use positive reinforcement to correct improper behaviour; 13. don't solicit employee ideas; 14. use control to ensure they are attaining their objectives; 15. use input from customers to evaluate the results.

THE COMPONENTS OF MANAGEMENT The basic management components are planning, organizing, coordinating, staffing, directing, controlling, and evaluating. Each component defines what a manager must be able to do. In practice, the components are interrelated. Planning The planning process begins with top managers, who must create broad organizational goals to help managers and employees focus on what the property is trying to accomplish. Top and middle managers then create specific objectives that become the responsibility of various departments. Daily activities require a third level of planning, Plans must also be generated for ; special events, new training programs, and other activities. Supervisors are responsible for much of this type of planning. Effective planning incorporates the following principles: Goals must be established before plans can be developed. You must regularly set aside time to plan. You should be allowed to contribute to plans that affect your work. In turn, you should allow your employees to contribute to plans that affect their jobs. You should be flexible when planning. You should recognize that situations change and that other plans must be considered. Plans must be implemented. Organizing Organizing involves establishing the flow of authority and communication between people and organizational levels. General organizing principles and responsibilities include the following: Authority should flow in an unbroken line from the top to the bottom of the organization. Each employee should have only one supervisor. Relationships between departments in the organization must be considered when managers organize.

Coordinating You must be able to coordinate the efforts of your employees through good planning and effective organization. Principles of coordinating include the following: Supervisors must have the authority to enforce assignments, commands, and decisions. Not only must you coordinate your resources and employees to complete your assigned tasks, you must also do your part to help coordinate the efforts of the organization as a whole. Staffing Staffing involves recruiting applicants and hiring those best qualified. In small operations, a manager or supervisor might recruit and hire applicants. In large properties, recruiting is frequently performed by a human resources (personnel) department, al-though line managers still are involved in interviewing and make the hiring decisions. All properties use basic principles of staffing such as the following: Personal qualities needed to adequately perform job tasks must be considered. These are recorded in job specifications. Job application forms should be used to collect information about applicants. Tests can be used to assess the abilities of applicants. Preliminary interviews and reference checks will also help eliminate unqualified applicants. Employee orientation, training, and evaluation programs should be developed and implemented. Directing Directing includes all the activities necessary to oversee, motivate, train, evaluate, and discipline employees. Directing incorporates the following principles. The number of employees each supervisor directs should be carefully determined. There is no formula for calculating the optimum number of employees for each supervisor. The right number of employees depends on many variables, including the supervisor's experience, complexity of the work, and frequency with which problems are likely to occur. No supervisor should be given more people than he/she can handle. Employees must know what they are expected to do. Delegation the act of giving formal organizational authority to an employee is a directing technique. Directing includes motivating your employees. Keep in mind that your attitude affects employee attitudes and performances, Don't relate to all employees the same way. Your leadership style should vary according to employee needs. It's important to gain employee cooperation. You should treat them fairly and honestly. Solicit employee ideas and, whenever possible, use them. Show your appreciation to employees who perform their jobs well. Controlling Controlling helps to ensure that you are attaining your objectives. The control process begins with establishing performance standards, continues with assessing actual performance, and then involves making a comparison between performance standards and actual performance to determine whether and to what extent corrective action is necessary. Control is based on several principles: Operating budgets are the most important control tools.

Preventive controls are more effective than controls imposed after things go wrong.

Evaluating Evaluating means looking at how well you and your employees achieved your objectives. Evaluating principles include the following: Time to evaluate must be set aside regularly. Input from guests and others outside the property is useful in the evaluation process.

4. Discuss the following questions. 1. Planning is looking ahead, and control is looking back. Comment. 2. If planning involves a rational approach to selected goals, how can goals or objectives be a type of plan? 3. Since people must occupy organization positions, and since an effective organization depends on people, it is often said that the best organization arises when a manager hires good people and lets them do a job in their own way. Comment. 4. List and evaluate external factors affecting staffing. Which ones are most critical today? Explain. 5. The "assessment center" is a technique for selecting and promoting1 managers. The candidates take various psychological tests, engage in management games, participate in a leaderless group discussion of some problem and are observed by their evaluators who also interview them from time to time. 6. Would you like to participate in such a center? Why, or why not? 7. Performing the function of evaluating, how would you measure the productivity of managers and other knowledge workers?

Text 3.


5. Read the text and decide what new information you can find in the text.

PLANNING AND ORGANISING The main functions are planning, organising, staiffing, leading and controlling. Planning involves selecting objectives and the actions to achieve them, it requires decision making. Decision making is choosing future courses of action from among alternatives. No real plan exists until a decision has been made. Before a decision is made, all we have is a planning study, an analysis, or proposal, but not a real plan. Planning bridges a gap from where we are to where we want to be in a desired future. It strongly implies not only the introduction of new things; but also sensible and workable implementation. There is no more important and basic element in establishing an environment for performance than enabling people to know their purposes and objectives, the tasks to be

performed, and the guidelines to be followed in performing them. If group effort is to be effective, people must know what they are expected to accomplish. Organising. People working together in groups to achieve some goals must have roles to play, much like the parts actors fill in a drama. The concept of a role implies that what people do has a definite purpose or objective; they know how their job objective fits into group effort, and they have the necessary authority, tools and information to accomplish the task. Organising is that part of managing that involves establishing an intentional structure of roles for people to fill in an organisation. It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned to people who can do them best. The purpose of an organisation structure is to help in creating an environment for human performance. To design an effective organisation structure is not an easy managerial task. Many problems are involved in making structures fit situations, including both defining the kind of jobs that must be done and finding the people to do them. STAFFING, LEADING AND, CONTROLLING Staffing involves filling and keeping filled the positions in the organization structure. This is done by defining work-force requirements, inventorying the people available, recruiting, selecting, placing, promoting, planning the career, compensating and training. Leading is influencing people so that they will contribute to organisation and group goals; it has to do with the interpersonal aspect of managing. All managers would agree that their most important problems arise from people their desires and attitudes, their behaviour as individuals and in groups. Effective managers also need to be effective leaders. Since leadership implies followership and people tend to follow those who offer a means of satisfying their own needs, wishes and desires, it is understandable that leading involves motivation, leadership styles and approaches, and communication. Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plans. It measures performance against goals and plans, shows where negative deviations exist and by correcting deviations helps ensure accomplishment of plans. Although planning must precede controlling, plans are not self-achieving. The plan guides managers in the use of resources to accomplish specific goals. Then activities are checked to determine whether they conform to plans. Control activities generally relate to the measurement of achievement. Each means of controlling shows whether plans are working out. If deviations persist correction is indicated. But what is corrected? Activities, through persons. Nothing can be done unless one knows who is responsible for these functions. Making events to conform to plans means locating the persons who are responsible for results that differ from planned action and then taking the necessary steps to improve performance. Thus, outcomes are controlled by controlling what people do.

NOTES TO THE TEXT: 1 bridges a gap


much like the parts actors fill in a drama 3 an intentional structure


making structures fit situations

people tend to follow those who offer a means of satisfying their own needs

It measures performance against goals and plans. 7 if deviations persist 8 It means locating the persons who are responsible for results

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Answer these questions. 1. How is staffing defined? 2. What is to be done to perform staffing effectively? 3. How should leading influence people? 4. What aspect of managing is it? 5. What do the most important problems of managing arise from? 6. What does leadership imply? 7. What does leading involve? 8. What is controlling? 9. Why is it important? 10. Why is it necessary to check the activities of subordinates? 11. What does each means of controlling show? 12. How can deviations be corrected? 13. What does it mean to make events to conform to plans?

Text 4.


7. This text summarizes some of Peter Drucker's views on management. As you read about his description of the work of a manager, decide whether the five different functions he mentions require the four qualities you selected in your discussion, or others you did not choose. WHAT IS MANAGEMENT? Peter Drucker, the well-known American business professor and consultant, suggests that the work of a manager can be divided into planning (setting objectives), organizing, integrating (motivating and communicating), measuring, and developing people. First of all, managers (especially senior managers such as company chairmen and women - and directors) set objectives, and decide how their organization


can achieve them. This involves developing strategies, plans and precise tactics, and allocating resources of people and money. Secondly, managers organize. They analyse and classify the activities of the organization and the relations among them. They divide the work into manageable activities and then into individual jobs. They select people to manage these units and perform the jobs. Thirdly, managers practise the social skills of motivation and communication. They also have to communicate objectives to the people responsible for attaining them. They have to make the people who are responsible for performing individual jobs form teams. They make decisions about pay and promotion. As well as organizing and supervising the work of their subordinates, they have to work with people in other areas and functions. Fourthly, managers have to measure the performance of their staff, to see whether the objectives set for the organization as a whole and for each individual member of it are being achieved. Lastly, managers develop people - both their subordinates and themselves. Obviously, objectives occasionally have to be modified or changed. It is generally the job of a company's top managers to consider the needs of the future, and to take responsibility for innovation, without which any organization can only expect a limited life. Top managers also have to manage a business's relations with customers, suppliers, distributors, bankers, investors, neighbouring communities, public authorities, and so on, as well as deal with any major crises which arise. Top managers are appointed and supervised and advised (and dismissed) by a company's board of directors. Although the tasks of a manager can be analysed and classified in this fashion, management is not entirely scientific. It is a human skill. Business professors obviously believe that intuition and 'instinct' are not enough; there are management skills that have to be learnt. Drucker, for example, wrote nearly 30 years ago that 'Altogether this entire book is based on the proposition that the days of the "intuitive" manager are numbered,'* meaning that they were coming to an end. But some people are clearly good at management, and others are not. Some people will be unable to put management techniques into practice. Others will have lots of technique, but few good ideas. Outstanding managers are rather rare.
* Peter Drucker: An Introductory View of Management

8. Answer these questions. 1. What management functions are described in the text? 2. How is planning defined? 3. What activities does the organizing function involve? 4. What does Peter Drucker mean by the integrating function? 5. What does measuring mean? 6. What is the final function according to Peter Drucker? 7. What is the main job of a company's top manager? 8. Why can you say that management is a science? 9. What arguments does the author give to prove that management is an art.?


Text 5.


9. Before you read discuss these questions. What do you know about matrix management? What are its strengths and weaknesses? MATRIX MANAGEMENT The Oxford English Dictionary defines "matrix" as: "A situation or surrounding substance within which something else originates, develops or is contained." In the case of matrix management, the project team is the "situation...within which something originates or develops". Matrix management is the process of taking staff from different departments to work as a team to deliver a product or a service. Under this system, the organization of management is different to that in a more conventional, functional structure. In a functional management structure, the sales executive reports to the sales manager, who reports to the sales director and so on- i.e. everyone has just one boss. With the matrix approach, an employee would still work within his/her department, but may also have a role within a project team. The various team members are brought together for a specific project, and may not work together again. Strengths of matrix management Each project brings together people with different skills and is not reliant on a static staffing resource. This enables teams to be developed quickly, with the necessary skills to deliver the service or product. Individuals have access to wider opportunities, increasing motivation, recognition and career development. Employees can drive their career forward without being caught in one business area. Projects are short and diverse, and large achievements are possible. For example, involvement in a team responsible for a successful new product launch may help enormously in a person's self-confidence and career. Weaknesses of matrix management The main weakness is the potential for conflicts of interest between either the project team member and the project manager, or between the departments within the business. For instance a marketing manager may lack motivation towards a project dominated by IT staff. Business areas (such as the marketing department) and different project teams may all want the same well-reputed staff. The project with the highest priority will gain that resource, but this might weaker the departments or projects that lose out.


Conclusion The key to success is that projects should be delivered to budget, on time and with quality and often exceeding the customer's expectations. Without matrix management it would be difficult to be dynamic enough to meet the market place demand for changing skills and to keep pace with the ever-changing requirements of our customers. It might also be difficult to meet staff demands for interesting and challenging tasks. To keep ahead of our competitors, many companies utilize matrix management to change and evolve to meet customer's requirements. This can provide a complete solution calling upon all the experience of the firm across many different business areas and bringing these experiences together for a set period of time. 10.Read the text again and choose the best answer or ending to the following questions or statements: 1. According to the text, matrix management a) is a conventional organization of a project team; b) brings together people with the required skills from various business areas to fulfill the project; c) supports one of the main principles of management, i.e. each employee should have only one boss. 2. What is NOT true about matrix .management? a) Various team members may not work again after completing the project. b) Employees may have to combine work in two departments. c) It hinders career development of employees. 3. It can be inferred from the text that matrix management a) is applied to the most protracted and boring projects; b) is applicable for an indefinite period of time; c) may be a source of discord between the departments within the organization. 4. The expression "to keep pace" in the last paragraph is closest in meaning to a) to advance; b) to fall behind; c) to stay even with others.

Text 6.


11. Before you read discuss these questions. 1. What management levels do you know? 2. Who is responsible for the general direction and success of the entire business? 3. Who plans the day-to-day work of the employees of the company? 4. Who are departments usually headed by? MANAGEMENT LEVELS Unless a business is very small, there will be several managers with responsibilities for leading the business. Every manager completes all of the management functions and has authority over other people and their work. Not every manager gives the same amount of attention and time to each of the functions. Most organizations have three levels of managers: executives, mid-managers, and supervisors.


Top Management Executives are top-level managers with responsibilities for the direction and success of the entire business. They set long-term direction and plans. They are held accountable for the profitability and success of the business. Job titles of executives include chief executive officer, president, chief operating officer, and vice president. Executives spend most of their time on planning and controlling activities. They study the economy and competition. They are responsible for all major business communications. All other managers report to executives. Mid-Management Mid-managers are specialists with responsibilities for specific parts of a company's operations. Examples of mid-management jobs are marketing manager, information technology manager, customer service manager; operations manager, and human resources manager. They take the business plans developed by executives and prepare specific plans for their part of the business. They must coordinate their work with other managers. Much of their time is devoted to the organizing, staffing, and implementing functions. Supervisors Supervisors are the first level of management in a business. They are responsible for the work of a group of employees. Supervisors often have non-management duties in addition to their management work. They plan the day-to-day work of the employees they supervise. They make sure that needed resources are available and used wisely. Supervisors often evaluate the work of their employees and solve problems that occur in their area. Supervisors spend most of their time implementing the plans of executives and mid-managers. Management by Others Employees who are not managers complete work that seems to be a part of one of the management functions. Employees plan and organize their work. They might take part in hiring and training new employees. They may evaluate the quality of the work they complete. Managers are responsible for the work of others and have authority over those employees. Without that authority and responsibility, the work of an employee is not considered part of management. Some experienced employees are asked to serve as leaders for their work group. They may be asked to lead a particular project or supervise the work of a new employee. Many companies are now organizing work teams. They are giving the teams both authority and responsibility for much of their work. The team meets to make plans, determine how work will be completed, and divide the work among the team members. The team is responsible for meeting objectives and may even have some control over their budget. The team will still report to a manager and can ask for that person's assistance when needed. Both work group leaders and employee teams are completing a limited number of management activities. Both of those situations are an effective way for employees to have experience with several management activities. They can develop the skills needed by managers and decide whether they are interested in a management career. 12. Answer the following questions. 1. What levels of management do most organizations have?


2. Who are executives? What is their main function? 3. What job titles of executives do you know? 4. Who are mid-managers? What are they responsible for? 5. What is the first level of management? What is their function? 6. How can managers organize the work of their employees? LISTENING 13. Sally Muggeridge is Management Development Director at Pearson plc. Listen to the interview and take notes about what makes a successful business person. Successful business people 1. know their job very thoroughly 2. . DISCUSSION QUESTIONS 1. Can you imagine a company performing successfully without management? 2. What is management? Is it an art or science? 3. Do you agree that a manager is a continual problem-solver, decision-maker, and innovator? 4. Do you share the opinion that "Poorly considered solution will be costly in dollars, happiness, or both? 5. What qualities, from your point of view, is a person supposed to be born with or to acquire to become an effective manager? 6. Comment on the following: "Excellence costs, ... but in the long run mediocrity costs far more"

Background Hi-Style, a family-owned company based in Manchester, makes fashionwear for 18- to 30-year-olds. Its branded merchandise, ETC, is sold throughout Western Europe. The company's image is of fashionable clothing at competitive prices. However, its core products - jeans and trainers - are losing appeal and the company is struggling in a very competitive market. Zelal Sulen, the daughter of Hi-Style's founder, took over as Managing Director when her father retired last year. Zelal realises that Hi-Style is out of touch with its target consumers and is losing direction. Three months ago she appointed the management consultants, City Associates, to advise her on how to improve profits.


Hi-Style: Financial information

100 80

Option 1: Organic growth Hi-Style could allocate up to 10m to new investment in the business. For example, it could:
Assets Stock Sales Profits

60 40 20 0 this year last year

improve distribution and sales through an exclusive agreement with a major retailer launch new product ranges with major advertising campaigns improve its image by employing brand development consultants hire a top retailing executive to run the business commission City Associates to do a thorough review of all Hi-Style's activities.

Writing You are the head of City Associates. Write a report to Zelal Sulen briefly analysing the four options. Make recommendations and give the reasons for your first and second choices.


Option 2: Acquisition of Smartwear Ltd Based in Birmingham. Smartwear makes work clothes such as uniforms for bank staff and flight attendants. It has good sales agents in Europe and Asia, and strong connections with Indian manufacturers. It has a very creative design department with exciting new ideas. Smartwear made deliveries worth 2m last month to two new customers in the Far East. Unfortunately, both have just gone into liquidation and the stock has disappeared. There has also been bad press about working conditions in overseas factories. Smartwear Ltd. Acquisition price: 10m
25 20 15 10 5 0 this year last year Assest Stock Sales Profits

Option 3: Acquisition of Tan Clothing Company Tan Clothing Company is a successful family-owned business based in the Far East. Because of connections with its country's military rulers, it has regular orders of uniforms and footwear for the armed forces. It owns a large factory which is working 30% below capacity. Recently there has been political unrest but, at present, the situation is under control. However, the three Tan family members disagree as to who owns the company and who should run it, and have threatened each other with legal action. Tan Clothing Company. Acquisition price: 10m
30 25 20 15 10 5 0 this year last year Assets Stock Sales Profits

Option 4: Research and Development A recent graduate in Textile Design, Hi-Style's Director of Research and Development wants to greatly increase its debt to finance work on materials technology. Options include: 'take anywhere' crushproof material you can wear straight out of a suitcase clothes which can alter their colour exceptionally warm clothing for cold climates. She has identified five areas of research which could transform the company and give it a 'cutting edge' image. The research would cost 10m- 12m.


1. Summarize the information of the Unit to be ready to speak on Management. 2. Choose any question (problem, topic) relating to Management and make a 10-12 minute report in class. Refer to different additional sources to make your report instructive, interesting and informative.


3. Study the classified advertising section of a newspaper or an employment web site. Identify three management job listings. One of the listings should describe a top management position, another a mid-management position, and the third a supervisor position. Develop a table that lists the main duties the person in each position needs to perform. Classify these duties within the management functions. 4. Use the Internet or library to identify and gather information on the top executive of a large corporation. Prepare a report on the manager, describing the person's career path to his or her current position. Identify the important responsibilities of the executive in leading the company. 5. What advice would you give to senior managers on how to avoid and manage in a crisis?

Study the following words and phrases accomplish actual adequately affect/influence although apply to appreciation approach as much as possible as well as assess assignment attitude authority available be charged with carry out challenging compare comparison complete complexity concern consider considerably contribution conventional corrective deal with )dealt) define definite desirable determine deviation diverse either... or eliminate endeavour enforce enormously entire entirely establish evaluating ever-changing expand fairly few / a few first line supervisor first of all flexible for instance frequency generally guideline honestly i.e. /that is implement in a very real sense in addition to in practice in turn incorporate input intentional interrelated involve job application form maintain manageable much like neighbouring not-for-profit enterprise objective obtain obviously occasionally outcome outstanding oversee particular particularly performance standards personal dissatisfaction precise preliminary preventive profit proposal rare rarely recognize record recruit/hire refer to reference check reliant require self-achieving sensible set aside staffing strive surplus technique the least the like the same the scope of authority thus to what extent unable unless variable vary well-reputed whenever whether wide wisely


Lead-in What do you think? 1. What personal qualities are absolutely necessary for every manager? 2. Which of them are inborn and which ones can be acquired? 3. Which are of primary importance? 4. Do you posses them? 5. What professional skills/abilities are essential in a good manager? 6. What approach to people should a good manager have? 7. What is your own definition of a manager?

TEXT 1 1. In its analysis the text lists eight characteristics of 'great managers'. Before you read, try to predict what they might be. Scan the text quickly to see if your predictions were accurate. 2. Read the text and decide which of the following comments you would expect the writer to agree with. Use the text to support your answers. Successful managers 1 are happy when their staff make progress in the company. 2 try to be positive even when times are difficult. 3 tell head office if any of their staff make mistakes. 4 praise their staff as often as they can. 5 encourage employees to speak out if they are unhappy. 6 make sure they know what's going on outside their organisation. 7 keep in touch with their staff and customers. 8 never dislike any member of their staff. 9 concentrate on their employees' strong points and try to correct their weak ones. 10 ignore people's weak points, pretending they don't exist. 11 enjoy new challenges. 12 don't find it easy to delegate responsibility.

HOW TO BE A GREAT MANAGER AT THE MOST general level, successful managers tend to have four characteristics: they take enormous pleasure and pride in the growth of their people; they arc basically cheerful optimists -someone has to keep up morale when setbacks occur; they don't promise more than they can deliver; when they move on from a job, they always leave the situation a little better than it was when they arrived. The following is a list of some essential tasks at which a manager must excel lo be


truly effective. Great managers accept blame: When the big wheel from head office visits and expresses displeasure, the great manager immediately accepts full responsibility. In everyday working life, the best managers arc constantly aware that they selected and should have developed their people. Errors made by team members arc in a very real sense their responsibility. Great managers give praise: Praise is probably the most underused management tool. Great managers are forever trying to catch their people doing something right, and congratulating them on it. And when praise comes from outside, they are swift not merely to publicise the fact, but to make clear who has earned it. Managers who regularly give praise are in a much stronger position to criticise or reprimand poor performance. If you simply comment when you are dissatisfied with performance, it is all too common for your words to be taken as a straightforward expression of personal dislike. Great managers make blue sky: Very few people arc comfortable with the idea that they will be doing exactly what they are doing today in 10 years' time. Great managers anticipate people's dissatisfaction. Great managers put themselves about: Most managers now accept the need to find out not merely what their team is thinking, but what the rest of the world, including their customers, is saying. So MBWA (management by walking about) is an excellent thing, though it has lo be distinguished from MBWAWP (management by walking about -without purpose), where senior management wander aimlessly, annoying customers, worrying staff and generally making a nuisance of themselves. Great managers judge on merit: A great deal more difficult than it sounds. It's virtually impossible to divorce your feelings about someone - whether you like or dislike them -from how you view their actions. But suspicions of discrimination or favouritism are fatal to the smooth running of any team, so the great manager accepts this as an aspect of the game that really needs to be worked on. Great managers exploit strengths, not weaknesses, in themselves and in their people: Weak managers feel threatened by other people's strengths. They also revel in the discovery of weakness and regard it as something to be exploited rather than remedied. Great managers have no truck with this destructive thinking, They see strengths, in themselves as well as in other people, as brings to be built on, and weakness as something to be accommodated, worked around and, if possible, eliminated. Great managers make things happen: The old-fashioned approach lo management was rather like the old-fashioned approach to child-rearing: Go and sec what the children arc doing and tell them to stop it! Great managers have confidence that their people will be working in their interests and do everything they can to create an environment in which people feel free to express themselves. Great managers make themselves redundant: Not as drastic as it sounds! What great managers do is learn new skills and acquire useful information from the outside world, and then immediately pass them on, to ensure that if they were to be run down by a bus, the team would still have the benefit of the new information. No one in an organization should be doing work that could be accomplished equally effectively by someone less well paid than themselves. So great managers are perpetually on the lookout for higher-level activities to occupy their own time, while constantly passing on tasks that they have already mastered.


TEXT 2 What Makes a Good Manager? Here Are 10 Tips By Bill Gates There isn't a magic formula for good management, of course, but if you're a manager perhaps these tips will help you be more effective. 1. Choose a field thoughtfully. Make it one you enjoy. It's hard to be productive without genuine enthusiasm. This is true whether you're a manager or employee. 2. Hire carefully and be willing to fire. You need a strong team, because a mediocre team gives mediocre results, no matter how well managed it is. One common mistake is holding onto somebody who doesn't quite measure up. It's easy to keep this person on the job because he's not terrible at what he does. But a good manager will replace him or move him to a set of responsibilities where he can succeed unambiguously. 3. Create a productive environment. This is a particular challenge because it requires different approaches depending on the context. Sometimes you maximize productivity by giving everybody his or her own office. Sometimes you achieve it by moving everybody into open space. Sometimes you use financial incentives to stimulate productivity. A combination of approaches is usually required. One element that almost always increases productivity is providing an information system that empowers employees. When I was building Microsoft, I set out to create an environment where software developers could thrive. 1 wanted a company where engineers liked to work. I wanted to create a culture that encouraged them to work together, share ideas and remain highly motivated. If I hadn't been a software engineer myself, there's no way I could have achieved my goal. 4. Define success. Make it clear to your employees what constitutes success and how they should measure their achievements. Goals must be realistic. Project schedules, for example, must be set by the people who do the work. People will accept a "bottoms-up" deadline they helped set but they'll be cynical about a schedule imposed from the top that doesn't map to reality. Unachievable goals undermine an organization. At my company, in addition to regular team meetings and one-on-one sessions between managers and employees, we use mass gatherings periodically and e-mail routinely to communicate what we expect from employees. 5. To be a good manager, you have to like people and be good at communicating. This is hard to fake. If you don't genuinely enjoy interacting with people, it'll be hard to manage them well. You must have a wide range of personal contacts within your organization. You need relationships - not necessarily personal friendships - with a fair number of people, including your own employees. You must encourage these people to tell you what's going on (good or bad) and give you feedback about what people are thinking about the company and your role in it. 6. Develop your people to do their jobs better than you can. Transfer your skills to them. This is an exciting goal but it can be threatening to a manager who worries that he's training his replacement. If you're concerned ask your boss: "If I develop somebody who can do my job super well, does the company have some other challenge for me or not?" Many smart managers like to see their employees increase their responsibilities because it frees the managers to tackle new or undone tasks. 7. Build morale. Make it clear there's plenty of good will to go around and that it's not just you as some hotshot manager who's going to look good if things go well.


Give people a sense of the importance of what they're working on - its importance to the company, its importance to customers. When you achieve great results, everybody involved should share in the credit and feel good about it. 8. Take on projects yourself. You need to do more than communicate. The last thing people want is a boss who just doles out stuff. From time to time prove you can be hands-on by taking on one of the less attractive tasks and using it as an example of how your employees should meet challenges. 9. Don't make the same decision twice. Spend the time and thought to make a solid decision the first time so that you don't revisit the issue unnecessarily. If you're too willing to reopen issues, it interferes not only with, your execution but also with your motivation to make a decision in the first place. People hate indecisive leadership so you have to make choices. However that doesn't mean you have to decide everything the moment it comes to your attention. Nor that you can't ever reconsider a decision. 10. Let people know whom to please. Maybe it's you, maybe it's your boss and maybe it's somebody who works for you. You're in trouble - and risking paralysis in your organisation - when employees start saying to themselves: "Am I supposed to be making this person happy or this other person happy? They seem to have different priorities." I don't pretend that these are the only 10 approaches a manager should keep in mind, or even that they're the most important ones. There are lots of others. But these 10 ideas may help you manage well, and 1 hope they do. Questions: Do you agree with all these approaches a manager should keep in mind? Do you consider them to be important? If Yes - why, if No - why? TEXT 3 WHAT SKILLS AND COMPETENCIES DO SUCCESSFUL MANAGERS POSSESS?

Even though we recognize that all managers regardless of level, organization size, profit or nonprofit enterprise perform the four basic activities of management to some degree, a more crucial question becomes, "What are the critical skills that are related to managerial competence?" Management researcher Robert L. Katz attempted to answer that question. What Katz and others have found is that managers must possess four critical management skills. Management skills identify those abilities or behaviors that are crucial to success in a managerial position. These skills can be viewed on two levels general skills a manager must possess and the specific skills that are related to managerial success. Let's look at these two categories. General skills There seems to be overall agreement that effective managers must be proficient in four general skill areas These are conceptual, interpersonal, technical, and political skills. Conceptual skills refer to the mental ability to analyze and diagnose complex situations. They help managers see how things fit together and facilitate making good decisions. Interpersonal skills encompass the ability to work with, understand, mentor, and motivate other people, both individually and in groups. conceptual skills A manager's mental ability to coordinate all of the organization's interests and activities interpersonal skills A manager's ability to work with, understand,


Since managers get things done through other people, they must have good interpersonal skills to communicate, motivate, and delegate. Additionally, all managers need technical skills. These are abilities to apply specialized knowledge or expertise. For top-level managers, these abilities tend to be related to knowledge of the industry and a general understanding of the organization's processes and products. For middle and lower-level managers, they are related to the specialized knowledge required in the areas with which they work finance, human resources, manufacturing, computer systems, law, marketing, and the like. Finally, managers need political skills. This area is related to the ability to enhance one's position, build a power base, and establish the right connections. Organizations are political arenas in which people compete for resources. Managers with good political skills tend to be better at getting resources for their group than are managers with poor political skills. They also receive higher evaluations and get more promotions. Specific skills Research has also identified six sets of behaviors that explain a little bit more than 50 percent of a manager's effectiveness. Controlling the organization's environment and its resources. This includes demonstrating, in planning and allocation meetings as well as in on-the-spot decision making, the ability to be proactive and stay ahead of environmental changes. It also involves basing resource decisions on clear, up-to-date, accurate knowledge of the organization's objectives. Organizing and coordinating. In this skill, managers organize around tasks and then coordinate interdependent relationships among tasks wherever they exist. Handling information. This set of behaviors comprises using information and communication channels for identifying problems, understanding a changing environment, and making effective decisions. Providing for growth and development. Managers provide for their own personal growth and development, as well as for the personal growth and development of their employees, through continual learning on the job. Motivating employees and handling conflicts. Managers enhance the positive aspects of motivation so that employees feel impelled to perform their work "and eliminate those conflicts that may inhibit employees' motivation. Strategic problem solving. Managers take responsibility for their own decisions and ensure that subordinates effectively use their decisionmaking skills.

mentor, and motivate others, both individually and in groups technical skills A manager's ability to use the tools, procedures, and techniques of a specialized field political skills A manager's ability to build a power base and establish the "right" connections

Questions: Do technical and managerial skills and personal qualities help each other? TEXT 4 HOW JACK WELCH RAN GE

If leadership is an art, then Welch has proved himself a master painter. Few have personified corporate leadership more dramatically. Fewer still have so consistently delivered on the results of that leadership. 'The two greatest corporate leaders of the 20 th


century are Alfred Sloan of General Motors and Jack Welch of GE," says Noel Tichy, a University of Michigan management professor. "And Welch would be the greater of the two because he set a new, contemporary paradigm for the corporation that is the model for the 21st century.'' It is a model that has delivered extraordinary growth, increasing the market value of GE from $12 billion in 1981 to about $280 billion in 2000. No one, not Microsoft's William Gates, not Walt Disney's Michael Eisner, not even the late Coca-Cola chieftain Roberto Goizueta, has created more shareholder value than Jack Welch. Of course, GE's success is hardly Welch's alone. The company boasts what most headhunters believe to be the most talent-rich management in the world. Thus, Robert Wright has managed an astonishing turnaround at NBC, leading it to a fifth straight year of double-digit earnings gains in 1997 and a No.l position in prime-time ratings. Nor did Welch's magic work everywhere in GE. The huge appliance operation, for instance, saw operating earnings fall 39% in 1998, to $458 million. Welch has transformed what was an old-line American industrial giant into a highly competitive global growth engine. Welch has reshaped the company through more than 600 acquisitions and a forceful push abroad into emerging markets. How did Welch, who sat atop a business empire with $304 billion in assets, $89.3 billion in sales, and 276,000 employees in more than 100 countries, did it? He did it through sheer force of personality, coupled with an unbridled passion for winning the game of business and a keen attention to details many chieftains would simply overlook. He did it because he was a fierce believer in the power of his people. Welch's profound grasp on General Electric stemmed from knowing the company and those who work for it like no other. There were the thousands of ''students'' he has encountered in his classes at the Croton-on-Hudson campus. Then there was the way he spent his time: More than half was devoted to "people" issues. But most important, he has created something unique at a big company: informality. Welch liked to call General Electric the "grocery store". "What's important at the grocery store is just as important in engines or medical systems," said Welch. "If the customer isn't satisfied, if the stuff is getting stale, if the shelf isn't right, it's the same thing. You manage it like a small organization. You don't get hung up on zeros." You don't get hung up on formalities, either. If the hierarchy that Welch inherited, with its nine layers of management, hasn't been completely undermined, it has been severely damaged. Everyone called him Jack. Everyone could expect to see him hurry down an aisle to pick through the merchandise on a bottom shelf or to surprise an employee with a bonus. Making the company "informal" meant violating the chain of command, communicating across layers, paying people as if they worked not for a big company but for a demanding entrepreneur where nearly everyone knows the boss. It had as much to do with Welch's charisma as it had to do with the less visible rhythms of the company its meetings and review sessions and how he used them to great advantage. When Welch became CEO, he inherited a series of obligatory corporate events that he transformed into meaningful levers of leadership. These get-togethers allowed him to set and change the corporation's agenda, to challenge the strategies and the people in each of GE's dozen divisions, and to make his opinions known to all. Welch believed that efficiencies in business were infinite because there were no bounds to human creativity. "The idea flow from the human spirit is absolutely unlimited," Welch declared. "All you have to do is tap into that well. I don't like to use the word efficiency. It's creativity. It's a belief that every person counts." Not surprisingly, Welch embraced the largest corporate quality initiative ever


undertaken. For years, he had been skeptical of the quality programs that were the rage in the 1980s. He felt that they were too heavy on slogans and too light on results. That was before he heard Lawrence Bossidy telling about the benefits he was reaping from a quality initiative he had launched at AlliedSignal. Bossidy had borrowed the Six Sigma program from Motorola and reported that the company was lowering costs, increasing productivity, and generating more profit. A Six Sigma quality level generates fewer than 3.4 defects per million operations in a manufacturing or service process. GE is running at a Sigma level of three to four. The gap between that and the Six Sigma level is costing the company between $8 billion and $12 billion a year in inefficiencies and lost productivity. To make the ideas take hold throughout GE required the training of so-called master black belts, black belts, and green belts. Welch launched the effort in late 1995 with 200 projects and intensive training programs, moved to 3,000 projects and more training in 1996, and implemented 6,000 projects and still more training in 1997. In 1998, Six Sigma delivered $320 million in productivity gains and profits, more than double Welch's original goal of $150 million. "Six Sigma has spread like wildfire across the company, and it is transforming everything we do," boasted Welch. Show and Tell The success of the program was evident in 1998 at Boca Raton, where Welch kicked off each year with a meeting for the top 500 executives. That year, 29 managers spoke about their Six Sigma projects describing how they used new ideas to squeeze still more profit out of the lean machine that is GE. One after another explained how quality efforts cut costs and mistakes, enhanced productivity, and eliminated the need for investment in new plant and equipment. William Woodburn, who headed GE's industrial diamonds business, was one of the 1998 heroes at Boca. In just 4 years, Woodburn had increased the operation's return on investment fourfold and halved the cost structure. Employing Six Sigma ideas, he and his team have squeezed so much efficiency out of their existing facilities that they believed they have eliminated the need for all investment in plant and equipment for a decade. Some 300 other managers from GE have visited the plant to learn directly how Woodburn has done it. But the main event was Welch's wrap-up comments. Even though GE had just ended a record year, with earnings up 13%, Welch wanted more. Most CEOs would give a feel-good, congratulatory chat. But Welch warned the group that it would face one of the toughest years in a decade. It's no time to be complacent, he said, not with the Asian economic crisis, not with deflation in the air. Then, the ideas tumbled out of him for how they can combat deflation. "Don't add costs," he advised. "Increase inventory turns. Use intellectual capital to replace plant and equipment investment. Raise approvals for price decisions." Roses and Champagne Welch was uncommonly conscious of the signals and symbolism of leadership. His handwritten notes sent to everyone from direct reports to hourly workers possessed enormous impact, too. Moments after Welch lifted his black felt-tip pen, they were sent via fax direct to the employee. Two days later, the original arrived in the mail. They were written to inspire and motivate as often as to stir and demand action. In 1996, for example, Woodbum turned down a promotion from Welch that would have


required a transfer because he didn't want to move his teenage daughter out of school. Welch spoke to Woodbum on the phone and within a day sent a personal note to him. "Bill," wrote Welch, "we like you for a lot of reasons - one of them is that you are a very special person. You proved it again this morning. Good for you and your lucky family. Make Diamonds a great business and keep your priorities straight." To Woodburn, the note was an important gesture. "It showed me he cared about me not as a manager but as a person. It means a lot." Or consider how Welch became involved in the excruciating details of the tubes that go into GE's X-ray and CAT-scan machines. In the mid-1990s, Welch, who spent 15% to 20% of his time interacting with customers, heard some complaints about the poor quality of the tubes. The product was averaging little more than 25,000 scans, less than half what competing tubes were getting. To fix the problem, Welch reached two levels down into the organization and summoned to corporate headquarters Marc Onetto who had been general manager for service and maintenance in Europe. His orders were simple and direct: "Fix it," Welch demanded. "I want 100,000 scans out of my tubes!" For the next four years, Onetto faxed weekly reports direct to Welch, detailing his progress. Back would come notes from Welch every three to four weeks. Some would nearly growl for greater progress; others would flatter and cajole. The experience astonished Onetto. "I was just running a little business here, about $450 million in revenues, and I was so amazed that he could find the time to read my reports and then even send me back notes," he said. Since then, Onetto's team has created versions of the tubes that average between 150,000 and 200,000 scans. The improvements added about $14 million in productivity benefits to the division last year. Not everyone saw that side of Welch. Some rank-and-file employees, for example, grumbled about the unrelenting pressure on them to perform. "No matter how many records are broken in productivity or profits, it's always 'What have you done for me lately?'" said Stephen Tormey, who negotiated the United Electrical Workers contract. "The workers are considered lemons, and they are squeezed really dry." Other critics have questioned whether the pressure Welch imposed led some employees to cut corners, possibly contributing to the defense-contracting scandals that have plagued GE or the humiliating Kidder, Peabody bond-trading scheme of the early 1990s that generated bogus profits. Stick and Carrot Few would dispute that Welch was seen as a demanding executive who aroused a mixture of awe and fear. Aware of the daunting effect he can have on people, Welch worked hard to counter that image. Not long ago, recalled human-relations chief William J. Conaty, one manager who had to make a presentation before Welch was so apprehensive he was shaking. It was the first time he had met Welch, who was passing through St. Louis. "I'm so nervous," the manager confessed to Welch. "And my wife has told me she'll throw me out of the house if I can't get through this presentation." At day's end, when Welch was back on the corporate plane, he immediately arranged for a dozen roses and a bottle of Dom Perignon to be delivered to the man's home. He then wrote a note to the wife: "Your husband did a fantastic job today. We're sorry we put him and you through this for a couple of weeks." Welch set precise performance targets and monitored them throughout the year. And each of Welch's direct reports received from Welch handwritten, two-page job evaluation at the end of every year. Attached to the detailed notes were his jottings from a


year earlier, with new comments written in red pencil: "Nice job." "Still needs work." Every bonus, and every stock-option grant to Welch's 20 or so direct reports came with a candid talk about performance. "There are carrots and sticks here, and he is extraordinarily good at applying both", said a senior VP. "When he hands you a bonus or a stock option, he lets you know exactly what he wants in the coming year." Welch skillfully used rewards to drive behavior. Welch demanded that the rewards a leader disbursed to people be highly differentiated. Although GE set an overall 4% salary increase as a target in 1998, base salaries could rise by as much as 25% in a year without a promotion. Cash bonuses could increase as much as 150% in a year. Stock options, once reserved for the most senior officers at GE, have been broadly expanded under Welch. Now, some 27,000 employees get them, nearly a third of GE's professional employees. Unlike many companies that hand out options as automatic annual grants, Welch did not want GE's program to be perceived as a "dental plan." So everyone who received options didn't get them every year. Welch has been a major beneficiary of stock options. Yet few things energized Welch as much as reviewing a list of GE employees who cash in their rewards. Combing through the names, Welch could hardly contain his enthusiasm for the wealth he has put into the hands of people whose names were unfamiliar to him. In the first quarter of 1998 alone, some 3,900 employees exercised 8.7 million options with a net value of $520 million. "It means that everyone is getting the rewards, not just a few of us," he said. "That's a big deal. We're changing their game and their lives". While analysts on Wall Street or GE's own investors viewed Welch's likely legacy as creating the world's most valuable" company in stock market terms, Welch himself saw things quite differently. The man who spent more than 50% of his time on people issues considered his greatest achievement the care and feeding of talent. This place runs by its great people," said Welch. "The biggest accomplishment I've had is to find great people. An army of them. They are all better than most CEOs." While many companies profess to run as meritocracies, in reality, they are often conscious of class. At GE many of the company's most successful executives were, like Welch, the first in their families to earn college degrees. When it came time to pick a new CFO, for instance, Welch passed over several candidates in line for the job in favor of then 38-year-old Dennis Dammerman two layers down in the ranks because he was impressed with how he had handled other tough assignments. In every potential leader, Welch was looking for what he called "E to the fourth power." That was his term for people who have enormous personal energy, the ability to motivate and energize others, "edge"- the GE code word for being instinctively competitive and the skill to execute on those attributes. Jack Welch's Leadership Principles Face reality as it is, not as it was or as you wish it were; Be candid with everyone; Don't manage, lead Change before you have to If you do not have a competitive advantage, do not compete; Control your own destiny, or someone else will. Questions: 1. Why is Jack Welch considered the greatest corporate leader of the 20 th century? 2. How did he achieve such a tremendous success in creating shareholder value? 3. What was he focused on? 4. How did he manage to combine a small-company


environment with big company resources? 5. Was Welch a firm believer in human creativity? 6. What is Six Sigma program and what benefits did it bring to GE? 7. How did Welch interact with his people? 8. How did he use rewards to drive performance? 9. How did Welch promote people?

WHAT SORT OF MANAGER ARE YOU? Lead-in Whether a senior executive or a junior manager, everyone has the job of guiding, influencing or supervising people to some degree - and we all have different ways of doing it. Use the following questionnaire to help you analyse your own management style. When you have finished, discuss your answers with a partner and compare and give reasons for your management style. When supervising, I... always 1 2 3 4 5 6 7 8 9 10 set objectives and make sure the merits of my plan are clear supervise everyone's work closely in order to get better work from them encourage the people working under me to set their own goals and objectives set up controls in order to be sure the job is being done properly make sure that the work is planned out in detail check everyone daily to see if they need help allow people working under me to make important decisions have meetings to keep in touch with what's going on give people time limits in order to motivate them to work harder take charge as soon as reports suggest that a job is not getting done according to plan often sometimes rarely

LISTENING A You will now hear five extracts from a short lecture on 'MacGregor's Theory of Management Styles'. Listen to the first extract and then stop the cassette. Answer the following questions. 1 a b c Write down your own answers to the first three questions asked by the speaker.


2 What is the basis of 'MacGregor's Theory of Management Styles'? . WHAT SORT OF MANAGER ARE YQU? Now listen to Extracts 2-5. Stop the cassette after each one and write a sentence summarising the information given in the extract on both the X theory and the Y theory. Write these summaries in the columns below. X Theory Y Theory ............ ................ Extract 2 ................ ............ ........ ........ ............ ........

Extract 3

Extract 4

Extract 5

FOLLOW-UP Now stop for a moment and consider your own style of dealing with people. Are your beliefs about people nearer to the X theory or the Y theory set of assumptions? Mark your estimated position on the scale with a cross(x). X Y

Now look again at your answers to the questionnaire in the Lead-in section. Give yourself points for each answer according to the table below. always often sometimes rarely Nos 1,2,4,5,6,8,9,10 1 2 3 4 Nos 3 and 7 4 3 2 1

Add up your score and now mark your total, with a cross (x), on the scale below X Y 10 15 20 25 30 35 40

How does your score compare with your estimated position on the previous scale? Are you happy with your position or would you prefer to be nearer to X or Y than you actually are? Discuss the results with a partner. DISCUSSION QUESTIONS 1. Identify and describe a great manager. What makes him or her stand out from the croud?


2. Have you ever seen an ineffective manager? Describe the causes and the consequences of the ineffectiveness. 3. Do you belong to the people who are comfortable with a nine-to-five existence? 4. Would you like to own your own business. Why or why not? If so, would you prefer to buy an existing business or start one yourself? Explain. 5. What product or service would you provide? 6. Where would you want to locate the business and for what reason? 7. Have you changed your attitude to the profession of a manager after learning the information of the Unit?

For Manfred Englemann, Managing Director of a Swiss-based chemical company, the appointment of a Regional Marketing Manager for Asia was proving rather difficult. At first, it had all seemed fairly straightforward. Johann Straub appeared to be the logical and safe person for the job. He was hard-working, dependable and experienced. You wouldn't expect fireworks from him, but he wouldn't let you down. However, not all the directors shared Manfred's opinion. When he suggested Johann Straub to them several raised objections. He 'wasn't up to the job'. He 'lacked drive'. 'I think Gail Partington would be a much better candidate,' said Jean-Claude Longaud, Personnel Director. To Manfred's surprise, several other directors nodded their agreement. Gail Partington was an American national who had made a big impression at the company in a short time. Given the Scandinavian market to look after, she'd built up business there so quickly that the area now made a substantial contribution to group profits. There was no doubt she wanted the Asian position - she'd told most people that already, and hinted that, if she didn't get it, she might have to leave the company. The mention of Gail Partington was not exactly music to Manfred's ears. He considered Gail an ambitious woman who could be rather disruptive if she didn't get her way. 'I should point out,' said Manfred, 'we've always had a policy of not sending women to Asia. In my opinion, it's a sensible policy. I'm not saying Gail isn't qualified for the job - clearly she is. But this is a very sensitive position. If we put the right person in charge, this area could become our most profitable market. I've nothing against Gail, but she is rather... how shall we say ... direct. She likes to say what she thinks.' 'You mean she's honest and sincere, don't you?' cut in Jean-Claude Longaud. 'If you wish,' replied Manfred, a little irritated by the interruption. 'The point I was making was that if we send Johann Straub, we'll be sending a good man to do the job, and we wouldn't have to worry about the cultural problem - Straub would be accepted wherever he went. Right? Manfred needed support and he got it from Pieter Junker, Technical Director. 'There is the added problem with Gail that she's part of a dual-career family - her husband's a pretty successful photographer.' 'That's no problem,' said Jean-Claude. 'I know for a fact that he supports her completely, he won't hold her back if she wants to go. He'll go too, and so will the children - they're very young.' Manfred shook his head, unconvinced. 'The husband and children may hate Japan once they get there. The point is, surely, that all the countries she'll be working in are male-dominated. People there aren't used to seeing women in important positions, they wouldn't know how to cope with someone like Gail as Regional Marketing Manager. She 30

might be all right looking after existing business, but what about getting new business?' 'She did all right in Scandinavia,' pointed out Tony Simmons, Marketing Director. 'If she could repeat that performance in Asia 'Come on now,' said Pieter Junker, 'you can't compare the two markets. In Scandinavia, there're loads of women in top positions. Of course Gail's not out of place there, but in Asia it's a different matter. Let's face it, Manfred's right. Johann Straub is our only realistic choice.' Manfred Englemann gave his friend a grateful glance. 'Thanks Pieter for seeing it my way. I know there's a risk we may lose Gail if she isn't chosen, but is Asia right for her?' It was Jean-Claude who answered. 'We'll never know, will we, unless we send her there. So let's risk it.' Manfred looked hard at Jean-Claude. There was a short silence. Then he smiled, a little ruefully. 'You've always been rather impulsive, Jean-Claude, but I suppose that's part of your charm. I prefer to make a reasoned choice, though - if you don't mind.'

Working in pairs or small groups, discuss the following questions. 1 Is the company's policy of not appointing women to posts in Asia acceptable? 2 Would Asian businessmen feel uncomfortable if they had to deal with a female regional manager? 3 What are the main arguments for appointing Johann Straub? And Gail Partington? 4 Who should be appointed to the position? a) Johann b) Gail c) someone else


1.1 Effective Managers Objectives Instructions 1. To better understand what behaviors 1. Below is a partial list of behaviors in contribute to effective management. which managers may engage. Rank these items in terms of their importance for effective performance as a manager. Put a 1 next to the item that you think is most important, 2 for the next most important, down to 10 for the least important. 2. To conceive a ranking of critical 2. Bring your rankings to class. Be behaviors that you personally believe prepared to justify your results and reflects their importance in your being a rationale. If you can add any behaviors to successful manager. this list which might lead to success or greater management effectiveness, write them in


Effective Managers Worksheet

Communicates and interprets policy so that it is understood by the members of the organization. Makes prompt and clear decisions. Assigns subordinates to the jobs for which they are best suited. Encourages associates to submit ideas and plans. Stimulates subordinates by means of competition among employees. Seeks means of improving management capabilities and competence. 1.2 Career Planning Objectives 1. To explore your career thinking. 2. To visualize your ideal job in as concrete terms as possible. 3. To summarize the state of your career planning, and to become conscious of the main questions you have about it at this point. Career Planning Worksheet 1. Describe your ideal occupation in terms of responsibilities, skills, and how you would know if you were successful. _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ 2. Identify ten statements you can make today about your current career planning. Identify ten questions you need answered for career planning. Fully supports and carries out company policies. Participates in community activities as opportunities arise. Is neat in appearance. Is honest in all matters pertaining to company property or funds.

Instructions Read the instructions for each activity, reflect on it, and then write your response. Be as brief or extensive as you like.


Ten Statements 1._________________________________ ___________________________________ ___________________________________ 2._________________________________ ___________________________________ ___________________________________ 3._________________________________ ___________________________________ ___________________________________ 4._________________________________ ___________________________________ ___________________________________ 5._________________________________ ___________________________________ ___________________________________ 6._________________________________ ___________________________________ ___________________________________ 7._________________________________ ___________________________________ ___________________________________ 8._________________________________ ___________________________________ ___________________________________ 9._________________________________ ___________________________________ ___________________________________ 10.________________________________ ___________________________________ ___________________________________

Ten Question 1._________________________________ ___________________________________ ___________________________________ 2._________________________________ ___________________________________ ___________________________________ 3._________________________________ ___________________________________ ___________________________________ 4._________________________________ ___________________________________ ___________________________________ 5._________________________________ ___________________________________ ___________________________________ 6._________________________________ ___________________________________ ___________________________________ 7._________________________________ ___________________________________ ___________________________________ 8._________________________________ ___________________________________ ___________________________________ 9._________________________________ ___________________________________ ___________________________________ 10.________________________________ ___________________________________ ___________________________________

The Entrepreneur
Lead-in What do you think? 1. What is "management ability"? 2. What are "entrepreneurial skills"? 3. Do you think you have entrepreneurial flair or talent? 4. What is a driving force in entrepreneurship?

TEXT 1 Before you read, discuss the following questions. Then read and compare your ideas with those in the article. 1 What are the characteristics of an entrepreneur. 2 Are fear, greed and dedication prerequisites for entrepreneurial success? 33

Fear, greed and dedication

LAST week I discussed the reasons for businesses going bust and concluded that the ultimate problem often lies in the fact that the founder of the business is not cut out to start up and develop his own operation. Sometimes this is due to a lack of knowledge, skill or business experience; sometimes to personal weaknesses. So let us attempt to analyse the character traits of an entrepreneur. Although entrepreneurs are a diverse species, there are clearly some common factors. Permit me to quote from The British Entrepreneur - a study prepared by accountants Ernst and Young and the Cranfield School of Management 'Not all entrepreneurs are cast in the same mould. Indeed it would be an extremely dull world if they were. Almost by definition they defy categorisation. Some have a strong sense of humour, some none; some thrive on publicity and adulation, others are virtual hermits. 'Some have an overwhelming need for power, others for creativity; some need the trappings of wealth, others lead very simple lives. Whatever the difference is, there is one factor which all successful entrepreneurs have in common - they and their firms are always on the move.' It must be appreciated that management skills can be learned, whereas entrepreneurial ability is a matter of flair either you have it or you don't. Business requires both skills, the flair of the entrepreneur and the solid competence of the manager. It is dangerous to generalise but some of the characteristics of the entrepreneur, in contrast to the manager, are; belief in himself and his business; belief in wealth and material gain; and belief in delegation. Entrepreneurial talent and management skills may not both be present in the one person. This may lead to the idea of partnership and, indeed, as the business flourishes and expands, the creation of a management team. The British Entrepreneur encompasses the results of a survey of the views of owner-managers of the top 100 entrepreneurial firms in the UK One of the questions asked was *what are the critical factors for success?'. The answers came under three main headings: Marketing: A unique product; an innovative approach; a good fundamental idea; aggressive sales and marketing strategies;' active selling; quality; price; heavy marketing investment. Management: Dedicated senior management; hard work and commitment of staff; tight financial controls; cash flow; investment for the long term; regular views and overhaul of the management structure; disciplined and cost effective management of employees; unwavering and total support from initial backers. Personal: Vision; hard work; concentration; flexibility; persistence; ability to recognise opportunities. The owner-managers were asked about their personal life and family background. Many came from families where the father had some form of small firm or selfemployment, background and the mother was a full time housewife. It was interesting to note that not one was an only child and more than half came from families with more than two children.


The previous survey, in 1988, revealed that the group showed low educational attainments, 45 per cent having left school at the age of 16 and very few having any postschool qualifications. The 1989 list reveals somewhat greater academic attainments but apart from the obvious value of management skills which result from taking an MBA, few of these owner-managers saw any relationship between educational achievements and their current success. There is a misconception that successful entrepreneurs fail a number of times before making the breakthrough. Not true with this sample, where only 20 per cent had started more than one business. The average age of the entrepreneurs when they started their first business was 32, while the youngest was 24. Presumably they had gained valuable skills and product knowledge between school and start-up. On the other hand, the majority had started businesses which bore no commercial relationship to their previous employment. All rather confusing. Perhaps we should dwell on the wisdom of Sir James Goldsmith; 'First you must have the appetite to succeed - ambition. When you have no ambition you are dead. You have to be willing to work. You have to be ready to let go of a smart, safe, socially acceptable job in pursuit of your objective. Fear, greed, dedication and luck - all play their part. The rest follows.'
Brian Jenks is the partner responsible for private companies at Touche Ross. The Observer

2. As business editor on an evening newspaper, you prepared the following notes on Brian Jenks' article for use in your 'comment' section. On re-reading your notes, however, you discover that they are not accurate. Read the article and correct them. Notes 1. 2. 3. 4. 5. 6. it is difficult to categorise entrepreneurs entrepreneurs have nothing in common with each other successful entrepreneurs never stand still it is possible to learn how to be a manager, but entrepreneurs need flair entrepreneurs believe in themselves, like to make money, dont like delegating work some of the critical factors for entrepreneurial success according to The British Entrepreneurs include: a unique product aggressive sales/marketing cash flow effective management ability to recognize opportunities many of owner managers surveyed in The British Entrepreneurs were only children whose father owned a small firm or was self-employed and whose mother was a housewife few of the entrepreneurs questioned saw a link between academic achievement and entrepreneurial success most of the entrepreneurs surveyed had started several businesses before becoming successful


8. 9.


10. the majority of survey respondents had started businesses which were a direct extension of their previous employment LISTENING: You are going to hear an interview with John Goff, an entrepreneur based in Surrey, England. As you listen, note down the answers he gives to the following questions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Would you say entrepreneurs are born or made? What is it about running your own business that appeals to you? Have you always been an independent businessman? What has been your most successful venture, and what made it a success? Can you tell us what difficulties entrepreneurs face when setting up a business? Do you have any ideas on the best way to raise capital? Is a 'good idea and a dream' enough to be successful, or does it take other factors? What advice can you give to would-be entrepreneurs who have an idea? When an entrepreneur starts a business, what sorts of things go wrong? What have you got to be careful about once you're starting to be successful? 10. Would you advise the entrepreneur to have a partner? TEXT 2 1. Before you read the article, scan the subtitle for the following information. Dounne Alexander-Moore's product the source of Dounne's recipe the personal quality that has helped Dounne succeed the professional technique has helped Dounne succeed 2. Read the article and answer the following questions. What personal obstacles did Dounne overcome to set up her business? What personal attributes does Dounne have in her favour? What are Dounne's business goals? Why did Dounne choose Harrods as her first target? Who at Gramma's Ltd. is responsible for the following functions? hiring workers preparing the products administration getting the products to customers preparing the accounts

1 2 3 4 5

6 Why is it difficult for small companies to do business with supermarkets? 7 What are Dounne's plans for the future? 8 What warning does Dounne give to anyone thinking of going into business on their own? 9 What is the pun (double meaning) in the title?


Woman with sauce

Dounne Alexander-Moore's utter determination to put her grandmother's Caribbean recipes on the supermarket shelves is starting to pay off. Carol Dix spoke to her HOW MANY of us, hard at work at the kitchen stove, have dreamed of turning a homegrown recipe into a millionaire-making seller? 'Gee, Ma', says reverential child/neighbour, *you should package this and sell it in the stores.' Diane Keaton did it with designer baby food in Baby Boom. Paul Newman has made even more money out of salad dressing. But to turn the dream into a reality, without a name like Paul Newman's (or indeed Prince Charles'), can be extremely hard labour. Dounne Alexander-Moore has taken this route and has achieved remarkably: her own Caribbean hot pepper sauces, based on the recipes of her Trinidadian grandmother, are now in the marketplace as Gramma's. Dounne has managed to sell herself and her product to the nation through adroit PR Already her foot is in the door at major-league supermarkets such as Tesco's, Safeway and (as yet) one Sainsbury's. Yet, still, the going is extremely tough. Indeed, Dounne's story highlights what has become a major problem in our postEighties enterprise culture. Men and women, 'ordinary' men and women, have been encouraged to think big; that they can go it alone, that all they need is a good idea and a dream... Now in her early 40s, the indomitable Dounne found herself, a hard-working single mother with two teen daughters, living in an East End council flat and on the borders of poverty, relying on income support to help out. When the idea came to her to manufacture and sell Gramma's, the first strikes against her in the Enterprise Game were legion: she is black, a woman, a single parent, living in a council flat, with no capital and in need of income support Get back to 'Go'. But Dounne persevered and is now selling thousands of jars of her popular sauces, based in a small factory unit in Hainault, Essex. She has just the personality traits required by the enterprise culture: masses of drive, motivation, initiative, and determination to succeed against all odds. 'To launch a new product on the market is always very hard, and probably doubly so being a black woman. But never once did I compromise my goals. My aim has been all along to get the product into the mainstream (not just to sell in ethnic stores), educate people about the health qualities of Caribbean hot pepper sauces, sell the idea of 'quality' and of a return to natural foods, and that Gramma's is an exceptional food product. 'Early on, I contacted all the TV stations and newspapers, from the nationals to the locals. And two London TV programmes covered my sauces on the very same evening. 1 had targeted Harrods first, as a high-quality department store which would not need to order in large quantities and would not be put off by a fairly expensive product. The price of Gramma's is above that of mass-produced foods, but it is right for the quality. 'My father took the jars himself into Harrods and Fortnum and Mason; for him that was a lifelong dream come true. The TV shots showed the first customers buying the sauces from Harrods' shelves. Within three hours the next day, Harrods had sold 500 jars. In the first week, they sold over a thousand jars, while I was back home struggling to keep up with the supply. I was still stirring the pots with a giant wooden spoon in my kitchen.' At that point Dounne gave up her job and concentrated full time on building up the business. On her shoulders fell the full design of the packaging, the logo, the jars themselves, staffing and equipment. She relies still on her daughters for administrative


and book-keeping help; her mother for the food preparation and her father with distribution. Her brother-in-law is the accountant. Costs have to be kept to a minimum when, in the first two years of running a business, your main expenses are equipment and advertising. 'The supermarkets demand that you must be able to spend over 1 million on advertising before they will take on a new product, a demand that in itself cuts out most small companies. Yet again I have been very fortunate. Gramma's is now into 150 Tesco Superstores (next to the stock cubes, I have to let everyone know); well be in Safeway from June and Sainsbury's Knightsbridge store. We're also in Dewhursts' butchers, will be launching soon in Ireland and there is definite interest from Asda, Morrison's in the North, and William Low in Scotland.' Dounne's main expansion plan is to build a larger factory, somewhere in the UK, and then ship her Hot Pepper Sauces across the Atlantic, where she knows the huge black market would be all too ready for her product 'I've no intention of giving up. There's been a lot of hard work and sacrifice, but the achievement is worth it Anyone going into their own business should be prepared for a lot of rejections and disappointment, but I've learned to see them all as a plus. They teach you the next step!'
The Guardian

DISCUSSION QUESTIONS 1. Working with a partner, read the following statements and underline the key words that describe the qualities of an entrepreneur. 2. There are two things that entrepreneurs have that others do not. One is a kind of visionary imagination to spot a commercial opportunity where others simply do not see it. And the Second is the ability to persevere in the face of skepticism or criticism even the fear of failure. George Smith, Harvard University 3. Entrepreneurs perform the function of creative destruction. They rethink conventional assumptions and discard those that no longer apply. They reform or revolutionize the pattern of production by exploiting an invention or an untried technological possibility for production, by opening up a new source of supply for materials or a new outlet for products, by reorganizing industry. Joseph Schunipeter, Harvard University 4. Drawing upon some of the key words and phrases used above to describe entrepreneurs, write a definition of an entrepreneur with your partner. Share this definition, with the whole class.

Work in groups of four as two pairs, taking it in turns to play the entrepreneurs and the small business advisers. Read your role-cards and prepare for your meetings carefully. Entrepreneurs Small business advisers Decide on an idea (product or service) for a You have an appointment an informal new business that you would like to start exploratory meeting with two bank


up. Draw up an outline business proposal, inventing any information you wish; and decide how you will present it to your bank. Your bank's small business advisers have agreed to meet you and provide some preliminary feedback on your ideas, an opinion - in principle on the feasibility of raising finance to get your business off the ground, and some advice on how. to proceed. Try to present your case persuasively and expert to face some probing questions. You should be prepared to provide some basic information on the following: .your planned product/service (description, name, key features, sales/profit potential); the market you are, targeting (nature, size, competition); your' marketing approach; financing; business structure/location; your expertise etc., but do no worry too much about specific detail at this stage.

customers to discuss an idea they have for a new business. You role is to provide some preliminary feedback, an opinion in principle on the feasibility of raising finance, and some advice on how to proceed. Ask pertinent questions about their planned product/service (description, name, key features, sales/profit potential); the market they are targeting (nature, size, competition); their marketing approach; they business structure/ location etc. Try to probe their determination/capacity to succeed, but dont worry too much about specific detail at this stage. If you think the idea has merit and they have the experience/ability to make a go of it, suggest they draw up a more detailed proposal, providing more information on e.g. projected start-up costs and overheads; turnover and profit forecasts; loan requirements/anticipated repayment terms/period and anything else you feel you might need to provide the bank with adequate security for any money you might advance.


Working in groups of four, identify the challenges and rewards of entrepreneur-ship. Do you think it is preferable to be solely responsible for a business or to share responsibility with a partner or within a corporate structure? Share this information with the whole class.

Study the following words and phrases acquisition distinguish agenda division anticipate double-digit approval emerging market approve entrepreneur base salary entrepreneurial big wheel entrepreneurship borrow facility borrower fake borrowing favouritism chain of command distinguish gain gainful gap genuine enthusiasm headhunter implement incentives lever maintenance market value measure up mediocre team merchandise revenue shareholder value swift tackle take pleasure(pride) turnaround unambiguously wander


LEAD-IN 1. Read the portraits of managers in five different countries and decide which country each one corresponds to. Germany Poland Sweden The United Kingdom The United Sates Managers from this country consider professional and technical skills to be very important. have a strong sense of authority. respect the different positions in the hierarchy of their companies. clearly define how jobs should be done. are very loyal to their companies and expect their subordinates to obey them. are often older than in other countries. Managers from this country consider social qualities to be as important as education. encourage their employees to take an interest in their work. pay close attention to the quality of working life. do not use as much authority as in other countries. appreciate low-level decisionmaking. are often women. Managers from this country receive a general education. delegate authority. take a practical approach to management. have relatively formal relationships at work. encourage their employees to work individually. believe it is important to continue education and training at work.

Managers from this country generally attend business schools. communicate easily and informally at work. admire the qualities of a leader. expect everyone to work hard. Individual performance is measured and initiative is rewarded. have competitive and aggressive attitudes to work. often accept innovation and change

Managers from this country have either gained their experience in stateowned enterprises or are competitive self-starters. older managers hold technical degrees rather than business qualifications. work very long hours and expect their subordinates to do so. are extremely innovative, optimistic and determined.


are quick to invest in the development of new products, market techniques and methods of production and distribution. 2 In groups discuss the advantages and disadvantages of each approach to management, and say which one you would find the most attractive. Do any of these profiles correspond to management practices in your country? READING Text 1. MANAGEMENT STYLES

3. Before you read the text discuss these questions. 1. Mothers and fathers often have different ways of managing their families. How would you describe the management styles of your parents? Teachers? If you had children what management style would you prefer? 2. What business management styles do you know? Managing a group of people is a very difficult job. It's not easy to get people with different backgrounds, personalities and experience to work well together. Have you been a part of an athletic team or musical group? If so, you can remember how hard it was at first to coordinate the talents of each group member so the team or group performed well. Managers approach the task of directing a group in different ways based on their management style. Management style is the way a manager treats and involves employees. Two different styles often used by managers are tactical and strategic management. Sometimes a management style is chosen based on the characteristics of the employees being managed. At other times the choice is based on the work assignments. Experienced and effective managers can change their management style. It should be based on the urgency of the work to be done and the confidence the manager has in the employees.

CHOOSING A MANAGEMENT STYLE A manager should use tactical A manager should use strategic management when management when Working with part-time or Employees are skilled and experienced temporary employees The work is routine with few new Working with employees who are challenges Employees are doing work not motivated they enjoy Working under tight time pressures The manager wants to improve group Assigning a new task for which relationships employees are not experienced Employees are willing to take Employees prefer not to be responsibility for the results of their involved in decision-making work

Tactical management Sometimes managers are faced with a crisis. They feel they don't have time to let the group decide how to complete the task. In other situations, a manager may be working with a group of new employees or may have work for which the


members have no previous experience. In those situations, the manager should use tactical management. Tactical management is a style in which the manager is more directive and controlling. The manager will make the major decisions and stay in close contact with employees while they work to make sure the work is done well. Strategic management When a group of employees is experienced and work well together, a manager does not have to be as directive and controlling. If there is enough time to bring a team together to help plan a work assignment, team members will usually prefer being involved in the decision - making process. These are examples of strategic management. Strategic management is a style in which managers are less directive and involve employees in decision-making. A manager using a strategic style will trust employees to work without direct supervision and will seek their advice on important decisions. Mixed management Which of the two management styles would you prefer if you were an employee? If you were a manager which of the styles would you use? Do you believe everyone would answer those two questions the same way? In the past, many managers used the tactical style of management. They believed they were responsible for getting work done and thus needed to be directive and controlling. That often led to employee frustration because they thought their manager did not trust them. Some employees prefer the manager to make day-to-day decisions. Other employees are not experienced enough to work without close supervision. As a result, effective managers are prepared to use both styles. The combined use of tactical and strategic management is known as mixed management. 4. Answer the following questions 1. Why is managing a group of people a very difficult job? 2. How can you define management style? 3. What are the two management styles often used by managers? 4. What factors determine the management style chosen by a manager in a particular situation? 5. What is a tactical management style? 6. In what situations does a manager use a tactical style of management? 7. How can you define strategic management? 8. When does a manager prefer to use a strategic management style? 9. What management style do managers use in real life situations? 10.What is mixed management?

Text 2. THE BIG THREE MANAGEMENT STYLES 5. Before you read the article answer one of these questions. 1. If you are a manager, what sort of style do you have? 2. If you were a manager, what sort of style do you think you would have?

The Big Three Management Styles

by Paul B.Thornton Management literature describes numerous management styles, including assertive, autocratic, coaching, country club, directing, delegating, laissez-faire, participatory, supportive, task-oriented and team-based. Are there really that many styles?


I believe there are three basic styles - directing, discussing and delegating, the 3-Ds of Management Style. DIRECTING STYLE Managers using this style tell people what to do, how to do it and when to have it completed. They assign roles and responsibilities, set standards and define expectations. Communicating - The manager speaks, employees listen and react. Managers provide detailed instructions so employees know exactly what to do. The ability to communicate in a clear, concise and complete fashion is critical. The only feedback managers ask for is, 'Do you understand what needs to be done?' Goal-Setting - 'Your goal is to sell 15 cars per month.' The manager establishes shortterm goals. When goals are specific and time bounded, employees are clear on what is expected of them. Goals and deadlines often motivate people. Decision-Making - I want you to stop what you are currently doing and help Sue set up the room for the seminar.' The manager makes most if not all decisions. When problems arise the manager evaluates options, makes decisions and directs employees as to what actions to take. Monitoring Performance and Providing Feedback - Managers establish specific control points to monitor performance. 'Get back to me at 11:00 a.m. to brief me on what you have accomplished.' Managers provide frequent feedback including specific instructions on how to improve performance. DISCUSSING STYLE Managers using this style take time to discuss relevant business issues. What happens in a good discussion? People present ideas, ask questions, listen, provide feedback, challenge certain assumptions and coach as needed. It's important to make sure ideas are fully discussed and debated. Managers often perform the role of facilitator, making sure the discussion stays on track and everyone has a chance to contribute. Communicating - Two-way communication is the norm, let's go around the table and give everyone a chance to discuss their ideas.' Managers spend as much time asking questions and listening as they do talking and sharing their ideas. The right question focuses the discussion and draws out people's ideas. Goal-Setting - 'Ingrid, what do you think our sales target should be for the fourth quarter?' After adequate discussion, goals are then established. Utilising a participatory style generally helps to increase employees' commitment to achieve their goals. Decision-Making - 'We have a problem with the amount of inventory we're currently carrying. What action do you think we should take?' Decisions are made collaboratively. Both manager and employee play an active role in defining problems, evaluating options, and making decisions. Monitoring Performance and Providing Feedback The manager and employee monitor performance and discuss what actions need to be taken. This works best when both parties are open and make adjustments as needed. DELEGATING STYLE Managers using this style usually explain or get agreement on what has to be accomplished and when it must be completed. The how-to-do-it part of the equation is left up to the employee. Responsibility and authority are given to employees to get the job done. Communicating - Regarding what has to be accomplished, communications may be one way: 'I want you to deliver a 15-minute presentation on our new compensation program at


Tuesday's meeting.' In other situations it may be two-way: let's discuss what needs to be accomplished in the marketing brochure you're designing.' Additional communication takes place to review what has been accomplished and obstacles preventing progress. Goal-Setting - As stated above, specific goals may be established by the manager or may evolve after a discussion between manager and employee. Failures in delegation can often be traced back to a lack of understanding of the desired output or deliverable. I thought you only wanted recommendations, not an implementation plan.' Decision-Making - Barbara, that's your decision to make.' Decisions as to how the task will be accomplished are left to the employee. Employees have the power to take appropriate actions to achieve the desired goals. Managers must avoid 'reverse delegation' when employees try to give back decisions that they should be making. Monitoring Performance and Providing Feedback - I want a weekly update on plan accomplishments.' Managers decide how much monitoring is necessary. The amount of monitoring depends on the priority of the task and the person doing it. Providing feedback is the responsibility of the employee. Keeping the manager informed, especially when the plan is off track, is critical.

6. Work in groups of three. decide which of the following statements are true for your style. 1. It is up to employees to keep the manager up to date on progress. 2. Managers set strict time limits. 3. Managers encourage staff to put forward their ideas. 4. Managers and employees decide together what needs to be achieved. 5. Decisions are made by managers and their staff. 6. Employees get precise instructions. 7. Managers do not want employees to avoid making decisions which employees should make. 8. Managers have tight control of employees' movements and work schedules. 9. When employees are given tasks, they decide how to complete them. 7. Discuss the following questions. 1. Which of the three management styles would you prefer to use as a manager? 2. Which of the three management styles would you prefer to experience as an employee?

Text 3 WHAT MANAGEMENT STYLE TO USE 8. The text describes four commonly recognized management styles (Directing, Supportive, Coaching and Delegating). What do you think characterizes each style? Read the text and check your predictions.


Which management style to use

A manager is generally responsible for a project or a team of people and, essentially must be able to communicate, negotiate and influence. However, these skills can be performed in different ways. A key component of job satisfaction is the relationship between managers and their staff. This, in turn, is influenced both by the people and management styles involved. Four basic styles Management styles do not always fit into nice, neat, recognised definitions. However, management writer, Ken Blanchard narrows management down to four basic styles: directing, supporting, coaching and delegating. Directing Directing is telling someone how and when to do something. Most managers find this style easy to use. It works best when tasks are straightforward and when the manager is better informed and more experienced than the member of staff. This style also works well when decisions have to be made immediately, when risks cannot be taken or when a task has to be performed to a given specification. Directing is also suited to situations where commitment from staff is irrelevant and where perhaps large numbers of staff are involved in completing a task. This style, however, does not come easily to everyone. Supportive A supportive style is appropriate for staff who have ability but need motivation or more confidence. A manager who uses this style needs to be a good listener but also needs to be able to provide encouragement to staff who may be reluctant to recognise their own achievements. A manager using this style works alongside staff as a colleague and offers honest praise and encouragement when appropriate in order to raise motivation levels. Supportive management is about finding out how the other person feels (e.g. ask "how do you feel that task went?") and giving constructive feedback. Managers should ask themselves questions such as: Do I acknowledge success and build on it? Do I analyse set-backs, identify what went well and give constructive guidance to improve future performance? Do I show those who work with me that I trust them or do I surround them with unnecessary controls? Do I provide adequate opportunities for training and retraining if necessary? Do I encourage each individual to develop his or her capacities to the full? Do I recognise the contribution of each member of the team and encourage team members to do the same? Coaching Coaching uses a combination of directing and supporting. It requires good two-way communication between staff and managers and is used as a vehicle to enable staff to develop their skills and competence. Relationship building is crucial. Coaching opportunities often arise during normal day-to-day activities and managers can informally coach staff as the need arises. Some organizations employ professional coaches. Coaching works on the premise that the person doing the coaching has confidence that the person being coached will succeed. The stages involved in coaching include: identifying the areas of knowledge, skills or capabilities where learning needs to take place; ensuring that the person understands and accepts the need to learn; discussing with the person what needs to be learnt and the best way to undertake the learning; getting the person to work out how they can manage their own learning while identifying where they will need help; providing encouragement and advice; providing specific guidance as required; agreeing how progress should be monitored and reviewed.


Delegating Of the four basic styles delegation is perhaps the most challenging. Some managers tend to have a reluctance to let go of a task and often end up supervising rather than delegating. Other managers delegate and disappear, failing to check on how the delegated task was completed or failing to carry out progress checks. Often delegation fails as a management style because of poor communication about the delegated task. Delegation works when agreement is reached on the nature of the delegated task, deadlines for completion are agreed, it is decided how potential problems will be addressed and the right person is chosen for the task. Staff who are delegated a task need to be respected for their knowledge and skills. They should be involved in the decisions about how progress on the delegated task will be monitored. Because delegation is not abdication by a manager, the person to whom a task is delegated should be aware of the lines of accountability for the delegated task.

9. Match the following statements to the management styles described in the text. 1. This style is appropriate if you need to develop confidence in your staff. 2. In this style it is necessary to agree on a time for completion of the task. 3. This style requires the manager to believe their staff will succeed. 4. This style is appropriate when it does not matter how committed your staff are. 5. This style works best when the most suitable person is selected for the job. 6. This management style is most effective for rapid decision-making. 7. In this style manager and staff need to agree on a system for checking progress. 8. This style requires the manager to acknowledge how every team member contributes. 10. Discuss the following questions. 1. Which of the management techniques described in the article have you experienced? 2. Which management style most appeals to you? Why?

TEXT 4 11.


Before you read the text discuss these questions. 1. Do you know any other management styles? 2. Do you think that management style is bound to reflect the company structure as much as the personality of the individual?

Management styles Every manager will be different, but over the years management theory has established three broad categories of management style: The authoritarian manager This person is strict, demanding, controlling and probably too rigid in their views. They take a top-down approach. But some staff like this - they know where they stand and what their responsibilities are. Their jobs are clearly defined. The consensual manager This person believes in consultation, and in coaching and mentoring their staff to help them develop. Subordinates usually like this type of manager, but the manager may lack vision and fail to show leadership. The hands-off manager


This person delegates everything, or just leaves problems in the hope that they go away. They will justify their style as empowerment (ie giving control over decisions to other people), but subordinates will feel a lack of guidance and support. Liaison between colleagues (co-workers) will be uncoordinated. An important point is that management style might reflect the company culture as much as the personality of the individual. So a hierarchical company with a bureaucratic decision-making process will suit one type of manager. On the other hand, a decentralized company where low-level managers can take the initiative will suit another. We also have to remember that different business situations will require different management qualities: Consider the manager who is methodical, systematic and organized. Is that always a good thing? Maybe there are situations where it's better to be intuitive and flexible, or to take decisions quickly without knowing all the facts. Consider the manager who is a good team player, co-operative and supportive. Is that always a good thing? Maybe there are situations where it's better to work on your own, being self-motivated and proactive. Qualities or skills? Here is something interesting to think about: notice that in the text above there is reference to styles and qualities, not to skills. This distinction is important. Qualities are a part of your character and personality - they were present at birth or formed early in your life and you will find it hard to change these things. Skills, however, are things you can learn - like how to speak another language, or give a good presentation. Skills can be developed and improved through practice and experience, qualities much less so. That raises many issues for training, personal development and career choice. Person specification When looking for candidates for a particular job, many companies produce both a job specification and a person specification. This helps recruitment agencies and or the human resource department to find suitable people. The person specification will include the skills needed, experience needed and personal qualities of the ideal candidate. The example below shows the final section, personal qualities.

PERSON SPECIFICATION Skills and abilities The ideal candidate will be able to demonstrate the following skills: An ability to ...

Personal qualities Business knowledge The ideal candidate will: have a good understanding of the market keep up to date with developments in the field Strategic ability The ideal candidate will:


be able to translate company strategy into individual business unit objectives be able to balance conflicting business interests within the organization Organizational ability The ideal candidate will: be a good administrator be a good time-manager be conscientious and thorough be a good team-builder Relation to subordinates The ideal candidate will: have an ability to motivate know when to delegate and when to refer upwards keep good lines of communication have an 'open door' policy be a good listener have an ability to control and give feedback in an appropriate way Character The ideal candidate will: like challenges be prepared to take risks be honest and transparent be single-minded and determined be able to recover quickly after a setback stay calm under pressure 12. Answer the following questions 1. How can you describe an authoritarian type of manager? 2. What is good and bad about the consensual manager? 3. What do you know about the hands-off manager? 4. Do you agree that different business situations require different management qualities. Prove it. 5. What is the difference between qualities and skills? 6. What do companies usually produce when looking for candidates for a particular job? 13. Discuss these questions. 1. What managers would you prefer to work with? Why? 2. What person specification would you like to have for your company? LISTENING 14. Listen to the first part of an interview with Niall Foster, an expert on management styles and answer the following questions. 1. What does Niall say a successful manager must do? 2. What does Niall do before he makes contact with people in other countries? 15. Listen to the second part of the interview and note down Niall's five key points on ways managers can get the best out of people


DISCUSSION QUESTIONS 1. After reading and hearing about management styles do you think you have the right skills to be a manager? 2. What management style would you use to get the best out of people? 3. When choosing candidates for any particular job, the Americans say,: "What can this person do?" , the French say,: " What qualification has she/he got?", the British say,: "What kind of background has this person got" . Which question would you ask when you are to choose an applicant? Why? 4. What management style would you like to have in the company you are working for? 5. What projected changes or improvements would you like to see in communications between employees and managers?

Zenova is based in Hanover, Germany. It is a multinational group which makes health and beauty products. Four months ago, it assembled a project team of members drawn from subsidiaries in Europe, America, Asia and the Middle East. The working language was English. The team, managed by Ryan Douglas, was instructed to carry out a major survey of job satisfaction in all the subsidiaries. This would involve travelling to subsidiary companies, interviewing staff, administering surveys, analysing results and producing a final report in 18 months' time. The team would have to work to tight deadlines, under constant pressure to complete the various stages of the work. Four months later, it became clear that the project was being badly managed. The morale of team members was low and progress on the project had been much too slow. The management of Zenova decided to replace Ryan Douglas, the current Project Manager. The problem was to decide who to put in his place. Who would have the right management style to lead this multinational team? Management style of Ryan Douglas You are directors of Zenova. You interviewed three members of the project team about Ryan's style of management. Work in small groups. Listen to the comments. Note down the strengths and weaknesses of his style, using these categories: Personality; Communication; Goal-setting; Decision-making; Monitoring performance and giving feedback.


Writing As one of the directors, write a summary of the meeting you have just attended. This summary will be sent to the Chief . Executive of Zenova, who was unable to attend. Your summary should contain the following: an analysis of each candidate's management style. your choice of candidate for Project Manager, together with your reasons.

Replacing the Project Manager

The directors of Zenova have talked informally to several candidates who would be interested in taking over from Ryan Douglas. The candidates were asked to note down their management style. Read the descriptions of their style. Manager 1 Elliot Manager 2 Janet NEW BUSINESS MANAGER MANAGER, COMPUTER SERVICES A people person. Our staff are our biggest I'm a strong, confident person. My job: To asset. My job: To try and make sure give instructions and see they're carried everyone's happy in the department Enjoy out. Not interested in excuses if the work meetings. Decide everything in discussions isn't done. Essential to give staff clear with all staff. Talk about our goals with goals. them - we decide them together. Check often to make sure they're meeting Once I've made up my mind, I don't change deadlines. it - very decisive. Don't like staff arguing, if they do, I listen Spend lots of time sorting out staff then tell them what to do. problems. It's a priority. I'm decisive, sometimes I get it wrong. Who Appraisal interviews: Every six months. doesn't? My staff ore multinational - I'm Check each week to see if they're OK. trying to adapt my management style. My strengths: Good listener; wellAppraisal interviews: Once a year with organised; get the details right. staff-always friendly and productive. My personality: Warm; friendly; My strengths: Leadership, achieving understanding. Wonderful atmosphere in targets. the department. My personality: tough, fair, loyal to staff. Bit impatient at times. Manager 3 Anna Manager 4 Koichi TRANSPORT MANAGER SALES DIRECTOR, EUROPE Ambitious, hardworking and responsible. Hardworking, democratic and loyal. My job: Organising people so that they get My job: To meet the targets set by my the work done. I'm tough, I have to be with superior. Essential not to let the company my staff - truck drivers, warehouse men. down. Always set goals. Then let them get on with Hold lots of meetings with staff. No time it. Their job? To carry out my instructions - limit.


to the letter. Like to offer them incentives, e.g. Bonuses, prizes, free holidays. Competition is good, it brings out the best in staff. Appraisal interviews: Once a year. Usually a waste of time. My strengths: Organising; motivating, getting job done. My personality: Strong, bossy, successful. Tough outside, soft inside!

Discuss our goals with staff. Never take decisions without consulting staff. Do not allow arguments at work - bad for team morale. Discuss sales targets with each member of staff. Set realistic targets. Work six days a week, often at the weekends. Expect staff to do the same. Want staff to feel ashamed if they do not meet targets. Appraisal interviews: Every quarter. My strengths: Hardworking, sociable, never get angry. My personality: Serious; polite; professional. Very important for staff to respect me.


1. Make the list of the best qualities of a manager and rank them in order of importance. Then make the five worst. Discuss them with your group-mates. 2. Hold a meeting to discuss what the feedback reveals about the management style within the team. 3. Suggest ways in which you could achieve a more consistent management style and improve the team's morale and efficiency.

Study the following words and phrases a strong sense of authority accept accomplish accomplishment achieve additional adequate adjust adjustment admire appreciate approach appropriate arise as stated above assertive assign assume collaborate collaboratively commit commitment compare compared with comparison competitive complete concise conclude confidence confident currently deadline determined directive drawback external facilitate facilitator fail failure feedback findings frequent frequently frustration gain hierarchy however implement implementation plan in due course in effect in sharp contrast perform performance raise / rise/ arise regard regarding relevant reveal reverse delegation reward rigid severe short-term stay on track subordinate supportive temporary thus tight


assumption attitude avoid background be faced with/ face be off track brief on career path coaching

earn encourage equation establish evaluate evolve exactly exaggerate expertise

in turn lack management style measure merely merge obey obstacle participatory

treat trust undergo unrelated unstable urgency urgent while willing work assignment


LEAD-IN 1. Discuss these questions. Multinational companies can either attempt to use similar management methods in all their foreign subsidiaries, or adapt their methods to the local culture in each country or continent. Which procedure do you think is the most efficient? Do you think the culture of your country is similar enough to those of neighbouring countries to have the same management techniques? Or are there countries nearby where people have very different attitudes to work, hierarchy, organization, and so on? A Dutch researcher, Fons Trompenaars, and his associates, have asked nearly 15,000 business people in over 50 countries a number of questions which reveal differing cultural beliefs and attitudes to work. Here are five of them, adapted from Riding the Waves of Culture: Understanding Cultural Diversity in Business. They concern ways of working, individuals and groups, rules and personal friendships, and so on. What are your answers to the questions? 1. If you had to choose, would you say that a company is (a) a system designed to perform functions and tasks in an efficient way, using machines and people, or (b) a group of people whose functioning depends on social relations and the way people work together? 2. What is the main reason for having an organizational structure in a company? (a) So that everyone knows who has authority over whom, or (b) so that everyone knows how functions are allocated and coordinated? 3. Will (a) the quality of an individual's life improve if he or she has as much freedom as possible and the maximum opportunity to develop personally, or (b) the quality of life for everyone improve if individuals are continuously taking care of their fellow human beings, even if this limits individual freedom and development? 4. A defect is discovered in a production facility. It was caused by negligence by one of the members of a team. Would you say that (a) the person causing the defect by negligence is the one responsible, or (b) because he or she is working in a team


the responsibility should be carried by the whole group? 5. Imagine that you are a passenger in a car driven by a close friend who hits and quite seriously injures a pedestrian while driving at least 25 kilometres an hour too fast in town. There are no other witnesses. Your friend's lawyer says that it will help him a lot if you testify that he was driving within the speed limit. Should your friend expect you to do this? READING Text 1. 2. CROSS-CULTURAL MANAGEMENT

2b Reading Read the text below, and see if your suggestions above coincide with the nationalities mentioned.

Managing a truly global multinational company would obviously be much simpler if it required only one set of corporate objectives, goals, policies, practices, products and services. But local differences often make this impossible. The conflict between globalization and localization has led to the invention of the word 'glocalization'. Companies that want to be successful in foreign markets have to be aware of the local cultural characteristics that affect the way business is done. A fairly obvious cultural divide that has been much studied is the one between, on the one hand, the countries of North America and north-west Europe, where management is largely based on analysis, rationality, logic and systems, and, on the other, the Latin 53

cultures of southern Europe and South America, where personal relations, intuition, emotion and sensitivity are of much greater importance. The largely Protestant cultures on both sides of the North Atlantic (Canada, the USA, Britain, the Netherlands, Germany, Scandinavia) are essentially individualist. In such cultures, status has to be achieved. You don't automatically respect people just because they've been in a company for 30 years. A young, dynamic, aggressive manager with an MBA (a Master in Business Administration degree) can quickly rise in the hierarchy. In most Latin and Asian cultures, on the contrary, status is automatically accorded to the boss, who is more likely to be in his fifties or sixties than in his thirties. This is particularly true in Japan, where companies traditionally have a policy of promotion by seniority. A 50-year-old Japanese manager, or a Greek or Italian or Chilean one, would quite simply be offended by having to negotiate with an aggressive, welleducated, but inexperienced American or German 20 years his junior. He would also want to take the time to get to know the person with whom he was negotiating, and would not appreciate an assertive American who wanted to sign a deal immediately and take the next plane home. In northern cultures, the principle of pay-for-performance often successfully motivates salespeople. The more you sell, the more you get paid. But the principle might well be resisted in more collectivist cultures, and in countries where rewards and promotion are expected to come with age and experience. Trompenaars gives the example of a sales rep in an Italian subsidiary of a US multinational company who was given a huge quarterly bonus under a new policy imposed by head office. His sales - which had been high for years - declined dramatically during the following three months. It was later discovered that he was deliberately trying not to sell more than any of his colleagues, so as not to reveal their inadequacies. He was also desperate not to earn more than his boss, which he thought would be an unthinkable humiliation that would force the boss to resign immediately. Trompenaars also reports that Singaporean and Indonesian managers objected that pay-for-performance caused salesmen to pressure customers into buying products they didn't really need, which was not only bad for long term business relations, but quite simply unfair and ethically wrong. Another example of an American idea that doesn't work well in Latin countries is matrix management. The task-oriented logic of matrix management conflicts with the principle of loyalty to the all-important line superior, the functional boss. You can't have two bosses any more than you can have two fathers. Andre Laurent, a French researcher, has said that in his experience, French managers would rather see an organization die than tolerate a system in which a few subordinates have to report to two bosses. In discussing people's relationships with their boss and their colleagues and friends, Trompenaars distinguishes between universalists and particularists. The former believe that rules are extremely important; the latter believe that personal relationships and friendships should take precedence. Consequently, each group thinks that the other is corrupt. Universalists say that particularists 'cannot be trusted because they will always help their friends', while the second group says of the first 'you cannot trust them; they would not even help a friend'. According to Trompenaars' data, there are many more particularists in Latin and Asian countries than in Australia, the USA, Canada, or northwest Europe.

3. Answer these questions 1 How would you explain the concept of glocalization?


2 Why might a 50-year-old Japanese manager be offended if he had to negotiate with or report to a well-educated but inexperienced 30-year-old American? 3 Why was the American concept of pay-for-performance unpopular in Italy, and in Asia, in Trompenaars' example? 4 Why do universalists disapprove of particularists, and vice versa? Text 2.


4. Before you read discuss these questions. 1 How do you most like to learn, e.g. lectures, discussions multimedia, case studies? 2. Do you think there are different ways of learning and teaching in different countries? Can you think of some examples?

How to learn
Cultural differences are an important factor when it comes to how and what managers should learn and from whom. Different cultural responses to management education are particularly revealing. For example, German and Swiss managers tend to favour structured learning situations with clear pedagogical objectives, detailed course outlines and schedules, and the 'right answer' or superior solution. This is very much in contrast with the view typically held by people from Anglo-Saxon cultures such as Britain and the USA. Most British participants in courses dislike a structure that is too rigid. They tend to prefer more open-ended learning situations with loose objectives and practical tasks. The suggestion that there could be only one correct answer is less acceptable to them. The idea of working in groups may come more naturally to Asian managers than to the more individualistic Anglo-Saxons. On the other hand, Asian participants experience more difficulty having to 'sell' their ideas in a group, with the potential for open disagreement and conflict, and therefore possible loss of face. Nor do they quite see the point of learning from other students who are no more knowledgeable than themselves. Wisdom resides in the hierarchy. Group discussions may seem perfectly natural to Americans, who have been encouraged as students to express their own ideas and opinions. British students too have been educated to challenge and debate the ideas put forth by each other, including the teacher. British culture values the ability to prove one's case, eloquently, even at the expense of others. Anglo-Saxon culture is more tolerant of confrontation and uncertainty, and is less concerned with status differences, either among participants or between themselves and the teacher. This can be quite a shock to students from Asia and many Central European countries, who are not used to either voicing their opinion in class, disagreeing with each other, or actively debating with the professor. Training that makes extensive use of case studies, business games, and management exercises such as role-plays, favours learning by doing rather than learning by lecture and reading. It indicates a preference for experiential or active learning rather than cognitive or reflective learning. It also reflects an inductive rather than deductive approach; cases or exercises are used to arrive at general principles or theories (the Anglo-Saxon approach) rather than starting with a theory or framework, which is then


applied to a given situation (the approach in many countries in Europe). As a result, so European managers may not always see the point of some of these exercises, and some complain that seminars conducted by US trainers are not sufficiently serious or theoretical. US managers, on the other hand, want training to be more concrete, practical and fun. With each culture favouring different training and development practices, it may be difficult to integrate these into a coherent or consistent policy within an international organisation. However, standardising training methods may be important if the company needs to communicate specialised knowledge quickly across different units, or if the special quality of the company training programmes is regarded as a major source of attracting new recruits. On the other hand, multinational companies may have a lot to gain from crossfertilising different approaches, and providing opportunities for training and development that appeal to people with different abilities, learning styles, educational backgrounds, and, of course, cultures. In fact, working with groups of managers from different countries often requires a mixed pedagogical approach, as well as the use of trainers of different nationalities.
From Managing Across Cultures, Pearson Education Limited

5. Answer these questions. 1 Which of these statements gives the best summary of the text on the opposite page? a) Multinational companies should try to standardise their approach to training and development. b) The way people learn should be considered when planning international training courses. c) The US approach to training is the most effective. 2 Which approach to training in international organisations do you think the authors prefer a) standardised training methods b) a mixed pedagogical approach Mark these statements T (true) or F (false) according to the information in the text. Find the part of the text that gives the correct information. 1. German and Swiss managers like training courses to be clear and well-structured. 2. British managers dislike training courses and prefer to learn by doing things on the job. 3. Asian managers want to learn from the teacher, not from each other. 4. Courses attended by British and US participants often lead to conflict and arguments. 5. British trainers are often concerned about the status of participants in their seminars. 6. British and American trainers like using role plays and simulations. 7. European managers consider American training courses to be badly organised.


Text 3


6. Before you read discuss these questions. 1. What do you think would be the best ways to learn to be an international manager? 2. What do you know about management development in different countries? Is it very different?

How to learn in a global classroom

Today's Tuesday, this must be Hong Kong. No, not the confused words of a jetlagged traveller, but the words of an international executive on a business management course. Our German manager from Lufthansa will have flown in to the former British colony on whistle-stop tours of LG, the Korean conglomerate, and Standard Chartered Bank, whose main operations are in the Middle East and Asia-Pacific, as part of his international training programme. After that, the next stop could be Brazil to see how ABB, the international engineering group, adapts its working practices to local conditions. The globe-trotting executive is already a well-established figure in the international picture. But he or she is now being joined by the global executive on a management training course. Why hold dry in-house study programmes, repeating old ideas, when the environment that today's top-flight executives operate in is global? Business schools have responded by offering courses in which the international element is the central point. At London Business School's Global Business Consortium, for example, a senior manager from each of ABB, British Telecom, LG, Lufthansa, SKF from Sweden, and Standard Chartered Bank come together each year to learn about how different global businesses operate. Each of the regions of Europe, Asia and South America are represented in the operations of these six blue chip multinationals. The emphasis is on participants learning from each other. Insights into cultural pitfalls and practical guidance are also part of the package. But the only way of getting a feel for the special considerations of operating on the ground in another country is to visit the region itself and meet local leaders, academics and senior managers. Here course participants will aim to gain a better understanding of the relationship between global strategy and regional characteristics. Each of the participating companies acts as host to the other five as part of the modulebased learning programme. On site they will work in a multinational team analysing various aspects of the host company's strategy. The Ashridge European Partnership MBA has been running since September 1998. Three German companies - Lufthansa, Deutsche Bank and Merck have formed a consortium enabling employees to study for an MBA with Ashridge Management College, in the UK. 'The English learning atmosphere is different from that in Germany,' said Dr Peter Weicht, director of personnel and organisational development at Merck, the international chemical and pharmaceutical group. 'It is good for team-building, which will be very important between different cultures. In England there is a more relaxed relationship between lecturer and student.' Dr Martin Moehrle, head of management development for Deutsche Bank, also favours global training. 'In Germany we are too domestically oriented; to become more international it is a must to be exposed to the English language and to other industries.' He was impressed, too, by the 'modern approach' of the Ashridge MBA compared with its more technical, accounting-led German equivalent, which is less concerned with


leadership issues. Another plus for organisations favouring the international element in training is that it will help them to attract those ambitious men and women who want to continue their studies. These training options enable high-fliers to carry on with education without leaving the company. However, there are drawbacks. Deutsche Bank, in particular, has had the experience of talented employees leaving their job to attend the Ashridge course, only to join another company later.

7. Answer these questions 1. a) How many companies take part in each programme? b) Which company is involved in both programmes? 2 a) b) c) What is the main emphasis on the London Business School (LBS) Programme? to learn about how different global businesses operate for the participants to learn from each other to provide experience of working in multinational teams

3 In which country does the second programme take place, and what language is used?

1 Mark these statements T (true) or F (false) according to the information about the LBS Programme. Find the part of the text that gives the correct information. a) Much of the course is based on lectures and discussions. b) The programme runs every year. c) The programme is aimed at young managers with high potential. d) The participants travel a lot as part of the programme. e) Part of the course involves staying in Brazil to get work experience. f) Each participant visits five different companies. g) The programme involves a lot of project work.

LISTENING 8. Listen to the Japanese consultant discussing the content of her seminars and make notes under the following headings. These notes will help you to organise the memo which you will be writing. Human relationships Japanese managers

Emphasis on the group

DISCUSSION QUESTIONS 1. Which of the following do you think have been the most important influences on you ?


Do you think the same is true of most people? the characteristics you inherited from your parents your family environment in early life your friends and social life, the things you do in your free time primary or secondary school, teachers and what you learnt higher education your job the culture of the particular company the people in your team 2. Do you believe that it is possible to sum up national characteristics in a few words? Is there usually some (or a lot of) truth in such stereotypes? Or, on the contrary, do you find such stereotyping dangerous? 3. For management positions do you think the job or task should be adapted to the person who does it, or should the individual employee adapt to the needs of the job? 4. Would you like to work for a company that had a pay-for-performance policy? Does this only work for salespeople, or could it be extended to all jobs? 5. Do you like the idea of matrix management, or would you rather report to only one powerful boss? 6. Do you like to work in a team? 7. Do you like to learn from other students? 8. Do you like using role plays and simulations? 9. In your company or in your country is it acceptable to : show that you are emotionally involved in your work? make eye contact with hierarchical superiors? wear fairly casual clothing to work make jokes in meetings? disagree with superiors in meetings? occasionally arrive late for work or meetings? socialize with superiors or/and colleagues gesticulate while you talk move very close to someone as you talk to them? touch someone on the arm as you speak to them? look at someone in the eyes for a long time while talking to them? laugh loudly at work and in meetings? 10. Do you read a guidebook before going to a foreign country, especially one where you don't speak the language?

Shimamura Electronics, a successful medium-sized Japanese manufacturer of electrical and electronic goods for the home and office, is interested in setting up manufacturing subsidiaries in key overseas markets. To research possible locations in those markets, the company has arranged a programme of visits to regional business development groups which are interested in attracting foreign investors.

Role-play: Meeting


Work in two groups, one group playing the delegation from Shimamura, the other playing a regional business development group. Read your role-card and prepare for your meeting carefully. The meeting will take the form of a presentation followed by an informal question-and-answer/discussion session.

Regional business development group Choose an area you know well and prepare a presentation on it to give to the Shimamura delegation. You will need to give basic information about your area (main features, major assets, cities, towns etc.) and outline the particular advantages it offers foreign investors in terms of e.g. the number of foreign investors already in the area, the attitude of local people to foreign investment, the availability of skilled labour and component suppliers, communications, local facilities (education/training, shopping, health, recreation) etc. You are very keen to persuade Shimamura to site their manufacturing plant in your area as you know it will provide a much-needed stimulus to the local employment market - you might like to consider a package of financial incentives to tempt the company. Also, try to find out as much as you can about the company and its plans before your meeting is over

Shimamura delegation This is a big step for your company and the choice of location might mean the difference between success and failure. Prepare for your meeting carefully by drawing up a list of questions you would like the regional business development group to answer. For example: How can you be sure a Japanese company would be welcome. How buoyant is the local economy? How many foreign businesses are already located in the area? Is there a good supply of skilled labour? How many component manufacturers are located nearby? What is the communications network like? Make notes as you listen to the presentation so that you can pick up on any points at the end. You may be asked by the regional development business group for some information about your company and its plans for expansion, so be prepared!


Student A You are a cross-cultural consultant hired by a foreign executive who is going to do business for the first time in your country or a country you know well. Prepare some advice to give your client about business practices. Use these topics to help you. Use of language addressing / greeting (formal? informal?) Non-verbal communication Business negotiations: handshaking, gestures and silence? punctuality / respecting the agenda? negotiating styles; direct? indirect? When is the right moment to mention money?



attitudes: gift giving, eating, humour? conversation topics (religion? politics? salaries?)

The following structures will help you to answer the questions that your client (Student B) will ask. You should always / never ... I would advise you to ... Don't forget... Never ... Do ... Always ... It is important/ essential to ... It would be a good idea to ...

Student B You are a business person going to negotiate in a foreign country. As part of the preparation for your trip, you have arranged to meet a consultant (Student A) who is an expert on the culture of the country. Using the headings below, make a list of questions to ask him / her. Use of language Non-verbal communication Business negotiations Socialising Examples: first name? greetings? business cards? topics to avoid?

Study the following words and phrases acceptable domestic accord domestically achieve dramatically adapt drawback affect/influence eloquently aggressive emphasis ambitious encourage appeal to essentially apply ethically appreciate experience at the expense of expose be aware fairly be concerned with favour be used to globe-trotting executive carry on high-fliers cause host knowledgeable lead/led/led line superior loose loss of face make use of object obvious obviously offend on the contrary on the one hand on the other hand open-ended learning participants particularists require resign resist response reveal rigid rise/rose/risen seniority sensitivity structured learning situations sufficiently superior solution take precedence task-oriented 61

cognitive coherent compared with complain consequently consistent corrupt cross-fertilising decline deductive deliberately desperate distinguish

however huge humiliation impose impress in contrast with inadequacy indicate inductive insight invention jet-lagged junior

logic particularly the former pay-for-performance the latter perfectly therefore pitfall tolerant preference for tolerate prove truly put forth uncertainty quarterly unfair rather than universalists rationality unthinkable reflect wisdom regard report to

Everything that can be said can be said clearly Ludwig Wittgenstein (1889-1951) Austrian philosopher LEAD-IN 1. Discuss these questions.

A. What makes a good communicator? Choose the three most important factors. fluency in the language a sense of humour an extensive vocabulary grammatical accuracy being a good listener not being afraid of making mistakes physical appearance an awareness of body language B. What other factors are important for communication? C. Discuss these questions. 1. Which of the forms of written and spoken communication below do you use most: a) in your own language? b) in English? Written e-mails faxes letters memos minutes reports Spoken conversations interviews meetings negotiations phone calls presentations


2. Which do you feel you do best? Which do you like least? 3. Do you use any other forms of communication? 4. What kinds of problem can occur with some of the forms of communication above? Think about: formality / informality jargon standard ways of doing things technology tone of voice visual gestures

Text 1. 2. Before you read discuss these questions. 1. How can you define communication? 2. What communication channels do you know? 3. What is the difference between one-way and two-way communication? 4. What communication problems can arise? 5. Do managers have to manage informal communication? INTERPERSONAL COMMUNICATION Communication is the transmission of information and meaning from one party to another through the use of shared symbols. Figure 1 shows a general model of the communication process. The sender initiates the process by conveying information to the receiver, the person for whom the message is intended. The sender has a meaning he or she wishes to communicate and encodes the meaning into symbols (e.g., the words chosen for the message). Then the sender transmits, or sends, the message through some channel, such as a verbal or written medium. The receiver decodes the message (e.g., reads it) and attempts to interpret the sender's meaning. The receiver may provide feedback to the sender by encoding a message in response to the sender's message. The communication process often is hampered by noise, or interference, in the system that blocks perfect understanding. Noise could be anything that interferes with your attention to the conversation: ringing telephones, thoughts about other things, or simple fatigue or stress. The model in Figure 1 is more than a theoretical treatment of the communication process: It points out the key ways in which communications can break down. Mistakes can be made at each stage of the model. A manager who is alert to potential problems can perform each step carefully to ensure more effective communication. The model also helps explain communication pitfalls, the differences between one-way and two-way








COMMUNICATION PITFALLS The sender's intended message does not always "get across" to the receiver. Here is a fact that conveys the ambiguities of communicating and possibilities for misinterpretation: For the 500 most commonly used words in the English language, there are over 14,000 definitions. Errors can occur in all stages of the communication process. In the encoding stage, words can be misused, decimal points typed in the wrong places, facts left out, or ambiguous phrases inserted. In the transmission stage, a memo gets lost on a cluttered desk, the words on an overhead transparency are too small to read from the back of the room, or words are spoken with inappropriate inflections. Decoding problems arise when the receiver doesn't listen carefully or reads too quickly and overlooks a key point. And, of course, receivers can misinterpret the message, as a reader draws the wrong conclusion from an unclear memo, a listener takes a general statement by the boss too personally, or a sideways glance is taken the wrong way. One-Way versus Two-Way Communication In one-way communication, only the top half of the model in Figure 1 is operating. Information flows in only one direction from the sender to the receiver, with no feedback loop. A manager sends a memo to a subordinate without asking for an immediate response. A boss gives an order over the phone. A father scolds his son and then storms out of the room. When receivers do respond to senders, completing the Figure 1 model, two-way communication has occurred. One-way communication situations like those just described can become two-way if the manager follows up her me mo with a phone call and asks the receiver if he has any questions, the boss on the telephone listens to alternative suggestions for carrying out her order, and the father calms down and listens to his son's side of the story. True two-way communication means not only that the receiver provides feedback but also that the sender is receptive to and responds to the feedback. In these constructive exchanges, information is shared between both parties rather than delivered from one person to the other. One-way communication is much more common than it should be because it is faster and easier for the sender. The busy executive finds it easier to dash off a memo than to discuss the issue with the subordinate. Also, he doesn't have to deal with questions or be challenged by someone who disagrees with what the memo says. Two-way communication is more difficult and time-consuming than one-way communication. However, it is more accurate; thus, fewer mistakes occur-and fewer problems arise. Receivers have a chance to ask questions, share concerns, make 64

suggestions or modifications, and consequently understand more precisely what is being communicated and what they should do with the information. COMMUNICATION CHANNELS Communication can be sent through a variety of channels (steps 3 and 8 in the Figure 1 model) including oral, written, and electronic. Each channel has advantages and disadvantages. Verbal Behavior Clear, slow speech. Enunciate each word. Do not use colloquial expressions. Repetition. Repeat each important idea using different words to explain the same concept. Simple sentences. Avoid compound, long sentences. Active verbs. Avoid passive verbs. Nonverbal Behavior Visual restatements. Use as many visual restatements as possible, such as pictures, graphs, tables, and slides. Gestures. Use more facial and hand gestures to emphasize the meanings of words. Demonstration. Act out as many themes as possible. Pauses. Pause more frequently. Summaries. Hand-out-written summaries of your verbal presentation. Attribution Silence. When there is, a silence, wait. Do not jump in to fill the silence. The other person is probably just thinking more slowly in the non-native language or translating. Intelligence. Do not equate poor grammar and mispronunciation with lack of intelligence; it is usually a sign of second-language use. Differences, if unsure, assume difference, not similarity. Comprehension Understanding. Do not just assume they understand; assume they do not understand. Checking comprehension. Have colleagues repeat their understanding of the material back to you. Do not simply ask if they understand or not. Let them explain what they understand to you. Oral Communication Oral communication includes face-to-face discussion, telephone conversations, and formal presentations and speeches. Advantages are that questions can be asked and answered; feedback is immediate and direct; the receiver(s) can sense the sender's sincerity (or lack thereof); and oral communication is both more persuasive and less expensive than written. However, oral communication also has disadvantages: It can lead to spontaneous, ill-considered statements (and regret), and there is no permanent record of it (unless an effort is made to record it).


Written Communication Written communication includes memos, letters, reports, computer printouts, and other written documents. Advantages to using written messages are that the message can be revised several times; it is a permanent record that can be saved; the message stays the same even if relayed through many people; and the receiver has more time to analyze the message. Disadvantages are that the sender has no control over where, when, or if the message is read; the sender does not receive immediate feedback; the receiver may not understand parts of the message; and the message must be longer to contain enough information to answer anticipated questions. You should weigh these considerations when deciding whether to communicate orally or in writing. Also, consider when it may be necessary to use both forms, such as when following up a meeting with a confirming memo or writing a letter to prepare someone for your phone call. Electronic Media A special category of written communications occurs via electronic media. Managers use computers not only to gather and distribute quantitative data but to "talk" with others via electronic mail (e-mail). For people who don't have direct access to one another's computer terminals, facsimile (fax) machines can transmit messages in seconds through telephone lines all over the world. Other means of electronic communication include teleconferencing, in which groups of people in different locations interact over telephone lines (audioconferencing) and perhaps also see one another on television monitors as they participate in group discussions (videoconferencing). Advantages of electronic communication technology include speed and efficiency in delivering routine messages to large numbers of people across vast geographic areas. Also, it can reduce time spent traveling to and interacting in group meetings. One study indicated that e-mail at a large office equipment corporation reduced time spent on the phone by 80 percent, interoffice mail by 94 percent, photocopying by 60 percent, and paper memos by 50 percent. Electronic channels allow people to participate more equally than they can in face-to-face settings and to share more information. Electronic mail also leads people to interact more frequently, providing not necessarily a substitute for face-to-face communication but a supplement. Disadvantages include the difficulty of solving complex problems, which require more extended, face-to-face interaction, and the inability to pick up subtle, nonverbal, or inflectional clues about what the communicator is thinking or conveying. E-mail is most appropriate, then, for routine messages that do not require the exchange of large quantities of complex information. It is less suitable for confidential information, resolving conflicts, or negotiating. One inevitable consequence of electronic mail is "flaming": hurling insults, sending "nastygrams," venting frustration, snitching on co-workers to the boss, and otherwise breaching bureaucratic protocol. E-mail liberates people to type and send things they would not say to a person's face. The lack of nonverbal cues can result in "kidding" remarks being taken seriously; this can cause resentment and regret if the sender's identity is known. It is not unheard of for confidential messages, including details about people's personal lives and insulting, embarrassing remarks, to become public knowledge through electronic leaks. Formal and Informal Communication Organizational communications differ in formality. Formal communications are official, organization-sanctioned episodes of information transmission. They can move upward,


downward, or horizontally and often involve paperwork, are prearranged, and are necessary for performing some task. Informal communication is more unofficial. Gossip and rumors run wild on the corporate grapevine; employees complain about their boss; everyone talks about his or her favorite sports teams; people whisper secrets about their co-workers. The grapevine helps people interpret the organization, translates management's formal messages into "employee language," and conveys information that the formal system leaves unsaid or wishes kept under wraps. On the other hand, the grapevine can be destructive when irrelevant or erroneous gossip and rumors proliferate and harm operations. Managing Informal Communication Most of the suggestions for improving personal skills and organizational communication writing, speaking, listening, facilitating and reinforcing upward communication, and so on typically are applied to improving formal communication. But they can also help improve informal communication. Other considerations also apply to managing informal communication effectively. Rumors start over any number of topics, including who's leaving, who's getting a promotion, salaries, job security, and costly mistakes. Rumors can destroy people's faith and trust in the company, and in each other. But the grapevine cannot be eliminated. Therefore, managers need to work with the grapevine. The grapevine can be managed in several ways. First, if the manager hears a story that could get out of hand, he or she should talk to the key people involved to get the facts and their perspectives. Second, suggestions for preventing rumors from starting include: explain things that are important but have not been explained; dispel uncertainties by providing facts; and work to establish open communications and trust over time. Third, neutralize rumors once they have started: disregard the rumor if it is ridiculous (has no credence with others); openly confirm any parts that are true; do make public comments (no-comment is seen as a confirmation of the rumor); deny the rumor, if the denial is based in truth (don't make false denials); make sure communications about the issue are consistent; select a spokesperson of appropriate rank and knowledge; and hold town meetings if needed.

3. Answer the following questions. 1. What is communication? 2. How can you describe the communication process? 3. What are communication pitfalls? 4. What communication (one-way or two-way) is more difficult? Why? 5. What advantages does each communication channel have? 6. What is formal communication? 7. Do you agree that grapevine can be constructive and, on the other hand destructive? 8. How can managers improve formal and informal communication? Text 2. COMMUNICATION SKILLS 4. Before you read discuss these questions. 1. Are communication skills very important? 2. Is it important to create understanding while communicating?


3. What functions does communication perform? COMMUNICATION SKILLS Communication can be defined as 'the process of transferring ideas or thoughts from one person to another, for the purpose of creating understanding in the person receiving the communication7. Although every day we communicate hundreds of times, misunderstandings frequently occur. It is important to recognise just how many problems can occur with communication and that some of these will take place in the mind, even before a word has been spoken. In fact, when one considers the number of factors that can, and do, interfere with the communication process, it is amazing that any effective communication takes place! Any communication must involve a minimum of two people - the sender and the receiver. In the role of interviewer, remember that while you should aim to be talking for only about 20% of the time, you are communicating as both the sender and the receiver, so let's view the communication process from both perspectives. Firstly, as the sender, try to avoid confusion or misunderstandings by: i) Working at sending clear, unambiguous messages. Think about your use of words, the logic of the message, whether it has been pitched at an appropriate level, and your body language (does it support the message or are conflicting messages being sent)? And: ii) Checking that the message has been understood as it was intended to be. Ask the interviewee to summarise, listen to what they are saying, and watch how they respond. Secondly, as the receiver, try to avoid misunderstandings by: i) Actively listening to what is being said. Concentrate and work at listening, not just at interview but in everyday life. Like all communication skills, practice makes perfect, or at the very least brings about improvement. Also: ii) Observing any non-verbal behaviour. Consider the implications. iii) Asking for clarification of any unclear verbal and non-verbal messages, iv) Summarising your understanding at regular intervals. As interviewer, you have the responsibility both as speaker and as listener to ensure that your communication with the other person is effective. Fulfilling this responsibility is essential for an interview to be effective and it is a responsibility that cannot be shirked. COMMUNICATION Communication serves four major functions within a group or organization: control, motivation, emotional expression and information. Communication acts to control member behavior in several ways. Organizations have authority hierarchies and formal guidelines that employees are required to follow. Communication fosters motivation by clarifying to employees what is to be done, how well they are doing and what can be done to improve performance. The formation of specific goals, feedback on progress toward the goal and reinforcement of desired behavior all stimulate motivation and require communication.


For many employees their work group is a primary source for social interaction. The communication that takes place within the group is a fundamental mechanism by which members show their frustrations and feelings of satisfaction. Communication, therefore, provides a release for the emotional expression of feelings and for fulfillment of social needs. The final function that communication performs relates to its role in facilitating decision making. It provides the information that individuals and groups need to make decisions by transmitting the data to identify and evaluate alternative choices. No one of these four functions should be seen as being more important than the others. For groups to perform effectively they need to maintain some form of control over members, stimulate members to perform, provide a means for emotional expression and make decision choices.

5. Answer the following questions. 1. How can you define the communication process? 2. What people are involved in any communication? 3. How can a sender avoid confusion or misunderstandings? 4. How can misunderstandings be avoided by a receiver? 5. What are the four major functions of communication? Text 3. COMMUNICATION: THIS EVER NEW OLD PROBLEM

6. Before you read discuss these questions. 1. Human relations can safely be said to be a basic human necessity. In most cases it is regarded as one of the social or spiritual needs of the individual. But how to communicate effectively? 2. The profession of a teacher obviously implies the ability to speak in public to students, parents, etc. Do you think this ability is inborn or one can acquire it through training? COMMUNICATION: THIS EVER NEW OLD PROBLEM 1. Aim of communicator must be clear. If you don't know where you are going, any road will lead there so says an old saying. But in a world where there are many enticing side-paths both to speaker and listener, to writer and reader we must be sure just what message we are taking to what people. What responses do we want? The kind of message transported makes a difference. There are messages of information, of persuasion, of suggested action and these are often combined. 2. There should be a clear picture of audience. Many communicators ignore the background and educational level of prospective members of the audience. People are not a mass. 3. Communication should not be too long. Brevity is not only the soul of wit; it is also the essence of good communication. While practising, time your speech! 4. Reinforce the message. Every message that is read, listened to, or viewed has some value. But it is the reinforced message that will be remembered and acted upon. A key idea must be repeated in varied settings, be exhibited from varied points of view, with different instruments of communication. The old message in a new setting prevents boredom.



Since you must hold the attention of your listeners, it is also important that your speech be well organized, so that the listeners can follow the ideas very easily. After an interest-provoking introduction, the speaker may even give a short outline of his speech. 6. In speaking, as in writing an essay or composition, the most important requirement for success is to have something interesting that you want to say. 7. For most people the best method is to, speak from a clear outline, that contains key-words to keep the flow steady, but leaves the actual words of each sentence up to the speaker to form as he or she proceeds, guided by the outline. 8. It is very important to look at different people in the audience as you speak. 9. Some people use a formal style of speech; others prefer a more casual one. If you're formal, don't be stiff, if you're casual, don't slouch or wander. 10. Obviously, to succeed, a speaker must be easy to hear be audible. Be sure to speak to the back row. 11. If you come to the end of the point and need to refer briefly to your notes, simply do it. You don't have to say "uh".

7. a) After reading the text what new information did you get? b) Add a few more helpful hints if you know any. c) Make a speech on any topic you choose trying to use all the helpful hints given above. d) Answer the following questions: 1. Do you think public speaking is difficult? Can any intelligent, well-informed person seize the attention of the audience? 2. What qualities must a good speaker possess? 3. Do you think stage fright is a usual thing for any speaker? 4. Say what interested you most in any public speech you have heard. Was it a spirited speech, full of enthusiasm, or did it impress you because of its good wording? Text 4. 8. COMMUNICATION - IT'S MUCH EASIER SAID THAN DONE

A. What are the advantages and disadvantages for companies of using e-mail? B. Select three of the items below which, in your opinion, best contribute to improving communication. trust open plan offices voice mail e-mail mobile phones flexi-time small teams strong corporate identity frequent meetings staff parties


COMMUNICATION - it's much easier said than done

By Clare Gascoigne

Trust is key in an open organization

Getting staff to talk to each other ought to be the least of your problems, but internal communication can be one of the hardest nuts to crack in business. 'Communication comes up in every department. The repercussions of not communicating are vast, says Theo Theobald, coauthor of Shut up and Listen! The Truth About How to Communicate at Work.

Poor communication can be a purely practical problem. Gearbulk, a global shipping business with branches around the world, faced language and geographical difficulties, as well as a huge amount of paperwork. With up to 60 documents per cargo, it was a logistical nightmare to track and monitor jobs, while tighter security regulations after 9/11 meant customs documents had to be ready before a ship was allowed to sail. Installing an automated system means data is now entered only once but can be accessed by anyone in the company, wherever they are. 'Reporting is faster by a matter of months,' says Ramon Ferrer, Vice President of Global IT at Gearbulk. 'An operational team carrying a voyage all the way across the world doesn't always have to be talking to each other -and we don't waste time duplicating the same information.' Given today's variety of communication tools, it seems strange that we still have a problem communicating. But the brave new world of high-tech can create barriers senior managers hide behind their computers, staff use voice mail to screen calls, and. employees sitting next to each other will send e-mails rather than speak. 'Managers should get up, walk round the office and talk to people,' says Matt Rogan, Head of Marketing at Lane4, a leadership and communications consultancy. 'Face-to-face communication can't be beaten.' Theobold recommends checking e-mail only three times a day, allocating a set period of time to deal with it. 'If you leave the sound on, the temptation is as great as a ringing phone. People will interrupt meetings to check their e-mails.' Another problem is simply hitting the 'reply all' button, bombarding people with information. 'We had unstructured data coming at staff from left, right and centre, leaving it up to individuals to sort out, says Gearbulk's Ferrer. 'Our new system has reduced emails and changed the way people work. It will remind you about work flow' Information overload also means people stop listening. But there may be a deeper reason why a message fails to get through, according to Alex Haslam, Professor of 'Psychology at Exeter University. 'Everyone thinks a failure to communicate is just an individual's error of judgment, but it's not about the person: it's about the group and the group dynamics,' he says. 'Just training people to be good communicators isn't the issue.' The problem is that employees develop common loyalties that are far stronger than the need to share information. This can even extend to questions of safety. In the mid-1990s there were a lot of light air crashes in Australia because the two government departments responsible for air safety weren't communicating,' says Haslam. 'The government was trying to save money and both groups felt threatened. The


individuals were highly identified with their own organisation and unwilling to communicate with the other department.' A company is particularly at risk when cost-cutting is in the air. Individuals withdraw into departmental loyalties out of fear. Sending such people on yet another 'how to communicate' course will be pointless. Instead, Haslam believes that identifying the sub-groups within an organisation and making sure each group feels valued and respected can do far more to encourage the sharing of information. The key to communication, he says, is trust. From the Financial Times Read the article again and answer these questions. 1. What communication problems did Gearbulk have? 2. How did Gearbulk overcome the problems? 3. What solutions does Theobald recommend for the above problems? 4. According to the author, why do staff often receive too many e-mails? 5. Why weren't the two government departments (responsible for air safety) communicating? 6. What does the author think about sending people on communication courses

Improving communications 1.2. Listen to the first part of an interview with Anuj Khanna, Marketing Manager of Netsize, a marketing agency for mobile media, and answer the questions. 1 According to Anuj Khanna: a) why have communications improved in recent years? b) how can they improve in the future? 2 What example does he give of banks improving communications with customers? 1.3 Listen to the second part of the interview. 1 What are the consequences of the following communication breakdowns? a) problems in air traffic control systems b) delays in fixing communication systems c) faults in cash machines 2 Which of the following developments in communication does Anuj Khanna expect to see in the future? a) more privacy for customers b) more freedom for companies to communicate with customers c) more control by customers over the messages they receive d) more communication between machines How do you think business communication will change in the future? DISCUSSION QUESTIONS 1. Think of an occasion when you faced a miscommunication problem. What do you think caused the problem? How do you think it should have been handled better? 2. Why do people withhold information from others? In cases where sharing information is important, what can be done to overcome people's reluctance to share it?


3. Think back to "discussions" and "dialogues" you have heard. Talk about the differences between a discussion and a dialogue. How can a discussion be turned into a constructive dialogue? 4. Share with the class some of your experiences both good and bad with electronic media. 5. Report examples of "mixed signals" you have received (or sent). How can you reduce the potential for misunderstanding and misperception as you communicate with others? 6. What makes you want to say to someone, "You're not listening!" 7. What do you think about the practice of "open-book management"? What would you think about it if you were running your own company? 8. Discuss rumors you have heard: what they were about, how they got started, how accurate they were, and how people reacted to them. What lessons can you learn from these episodes.

CREATING A SENSE OF IDENTIFY Background The international construction and engineering group KMB is based in Munich, Germany and has manufacturing subsidiaries and associated companies throughout the world. Its company magazine is published five times a year and is distributed by post to staff worldwide. The following letter, sent by a member of staff in its Brazilian sales office, appeared in the magazine's latest issue. Dear editor, I know I'm not the only one who feels uninformed about what's going on in KMB worldwide. When I was at our recent sales conference in Munich several other people from overseas subsidiaries said they felt a lack of involvement and wanted more information from head office about new developments within the group. For example, why has KMB bought a major civil engineering company in Australia? How does this acquisition fit into our overall strategy? Unfortunately we could only guess at the reasons. We also think it's essential to share best practice among our subsidiaries. We must know about ideas for improving efficiency as soon as possible. For example, if a marketing technique has been successful in one market, other areas of our business should be told. We all agreed that the new Global Communications Director should overhaul KMB's communication system so that all members of staff are kept fully informed - both about overall strategy, and about news from overseas subsidiaries. What's the use of a worldwide network if no one knows what's going on?
Aldo Renato Sao Paulo, Brazil

The new Global Communications Director, Dominique Lapierre, sent the following email to the Chief Executive of KMB after Aldo Renato's letter had been discussed at a board meeting.


Writing As a member of the working group, write a memo to the heads of all of KMB's subsidiaries. This should inform them that the meeting took place and should outline the plan of action agreed. Finally, the memo should ask for their cooperation in implementing the suggestions.


1. For what reasons can communication sometimes break down in organizations (companies, businesses)? 2. Can you give examples of informal communication? In groups discuss the benefits of this. 3. What changes can you suggest to improve communication within your own organization or an organization you know well? 4. What kinds of problem can arise between companies and their suppliers? For example in delivery, payment, quality control? How can these problems be solved? 5. How well can you handle your problems?


Study the following words and phrases access accurate acquire advantage / disadvantage air alert allocate alternative although amazing ambiguity ambiguous apply to arise assume at the very least attempt audible authority avoid behavior boredom break down brevity briefly bring about calm down cargo casual cause challenge check clarification clarify clue cluttered common complain composition compound comprehension concern conclusion confidential deny desired destroy destructive differ dispel disregard draw a conclusion duplicate eliminate embarrassing emotional emphasize encode encourage ensure enticing enunciate equally equate erroneous error essence essential evaluate even expression extend extended face difficulties facilitate failure faith fatigue fear formal guidelines frequently frustration fulfill fulfillment gather get across get lost get out of hand initiate install instead insult intend interaction interfere interference interviewee interviewer irrelevant job security lack lead to liberate loop loyalty maintain make a difference memo misinterpretation misuse necessarily negotiate nightmare non-verbal nuts to crack observe obviously occur on the other hand orally otherwise outline overhead transparency overlook participate particularly party permanent persuasion persuasive pick up pitch reinforcement relate to relay release remind repercussion require resentment resolve respond result in/from revise 'ridiculous rumour safely saying scold security regulations sender setting shirk similar similarity sincerity slouch snitch soul of wit spiritual spontaneous steady stiff substitute subtle suggestion temptation therefore threaten through thus tight time-consuming track transaction transmission


confirm conflicting message confusion consequence consequently consideration consistent convey cost-cutting costly crash credence cue dash off decimal decode deliver denial

given gossip grapevine hamper hand out harm hierarchy however ill-considered immediate implication in fact in public in response to inappropriate inborn inevitable information overload foster

pitfall pointless precisely prevent primary proliferate prospective purely quantitative rather than receiver receptive recognize reduce refer to regard regret reinforce

transmit treatment trust unambiguous uncertainty unless unwilling vast via view weigh wherever whether while whisper withdraw

1 Filling a vacancy 1a Vocabulary
Insert the following words in the gaps in the text below.

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


1b Discussion
When employees 'give notice', i.e. inform their employer that they will be leaving the company (as soon as their contract allows), in what order should the company carry out the following steps?

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


Before you read

Discuss these questions. 1. What are the most popular subjects to study at universities and colleges in your country? Why? 2. If you wanted to find out about job opportunities or vacancies at a large company or international organisation, how would you do it?

Reading task
A Understanding main points 1. Which of these statements gives the best summary of the text on the opposite page? b) A global company needs to recruit globally. c) The internet will revolutionise the way new employees are recruited. d) Engineering is the discipline of the future. 2 Mark these statements T (true) or F (false) according to the information in the text Find the part of the text that gives the correct information. a) DaimlerChrysler is the largest employer in Baden-Wurttemburg. b) Daimler Chrysler employs more people in Baden-Wurttemburg than in other parts of Germany. c) The company plans to increase its investment in research and development. d) DaimlerChryslers' policy is to recruit engineers in Germany whenever possible.


e) f) g) h)

DaimlerChrysler uses the Internet in its recruitment campaigns. BMW is a more attractive company to work for. Not enough students study engineering in Germany. DaimlerChrysler is planning to set up its own technical university.

B. How the text is organized These phrases summarise the main idea of each paragraph. Match each phrase with the correct paragraph. a) the need to recruit engineers globally to meet its business targets b) the lack of engineering graduates generally c) DaimlerChrysler's position in the state of Baden-Wurttemburg d) the need to compete with other companies to attract new recruits e) DaimlerChrysler's business targets f) use of the Internet for recruitment g) DaimlerChrysler's plans to support private universities h) another recruitment approach

is reminder of proud auto heritage by JEREMY GRANT Where have all the engineers gone?

For the past year Daimler has been part of the grouping with American manufacturer Chrysler. The German company's roots go back to the very first days of motoring. If Germans associate one company with the state of Baden-Wurttemberg it is the automotive group DaimlerChrysler. The group was formed in 1998 through the merger of Daimler-Benz and Chrysler of the US. But the local association dates back to the late 1890s, when Daimler and Bern began the automotive age by producing the world's first motor cars. DaimlerChrysler is one of the mainstays of the Baden-Wurttemberg economy, sustaining 242,000 people in employment across Germany - the bulk of them in the state. To extend its global reach, the company has ambitious plans to grow in the automotive business, and will invest 46bn developing sixty-four new cars and truck models in the next few years. Research and development spending is set to soar to what a spokesman says is 'a market leading position'. This year the company aims for sales of 146bn, compared with previous forecasts of l39.9bn. One of the most critical issues facing the group as it attempts to achieve those targets is where it will find, in sufficient numbers, people with the right qualifications to make it all happen. Baden-Wurttemberg and Germany alone will not be able to provide enough recruits. 'DaimlerChrysler needs to hire 4,500 engineers and IT people in the next three years,' says Mark Binger of Human Resourse. 'That's a big number and it will be impossible to find enough of them in Germany, let alone in one region. You have to hire them from the top schools in the world.' Traditionally, Daimler-Benz always recruited engineers within Germany. In 1999, however, its recruitment campaign went global. Part of the impetus was that the transatlantic merger had broadened the spectrum of job opportunities. Using the Internet, DaimlerChrysler issued a blanket invitation to college graduates around the world-with emphasis on mechanical engineering, process technology and aerospace engineering - to attend an open day at eleven DaimlerChrysler locations around the world. 800 who attended, about 55 per cent were invited for interview - a far higher proportion than in previous recruitment drives. A few months later, the group launched a novel campaign to attaract recruits for


its International Management Associate Program. It advertised in the international press, inviting would-be trainees to call a company hotline during a four-hour period over two days. Some 200 applicants were interviewed. Competition for talent from other large industrial groups is bound to increase. Rivals such as BMW, in neighbouring Bavaria, have similar needs. But Mr. Binder says: 'We try to convince would-be recruits that we're the most global company and it's more interesting to work at DaimlerChrysler in this exciting period after the merger.' Recruits are also offered opportunities to work in different units, of the group. The recruitment problem has been made worse by a steady decline in the number of students electing to study engineering since the early 1990s - when there were too many newly-qualified engineers entering the market. Large numbers of students chose to study other subjects leading to today's shortage. DaimlerChrysler is supporting initiatives to try to ensure a steady flow of engineers and graduates from other technical disciplines. Over the course of the next few years, the group will be supporting the establishment of two private universities in BadenWurttemberg - the Stuttgart Institute of Management and Technology and the International University of Germany in Bruchsal.
FINANCIAL TIMES World business newspaper


Synonyms 1. The writer uses three different words to describe an institute of higher education. What are they? Are they exact equivalents? 2. Two words are used many times with the meaning of 'to find and employ new people' What are they? 3. The word 'campaign' is used twice in the article. What other phrase is used with a similar meaning to 'campaign'? 4. about 55 per cent of graduates who attended DaimlerChrysler's open day were invited for interview. a) What other word is used in the article with a similar meaning to 'about? b) Think of at least three other words or phrases to give the idea of approximation.

B Word search 1. The article deals mainly with the theme of recruitment. Find at least ten words or phrases in the text connected with the idea of recruitment 2. The writer uses several phrases to express the idea of time, either as an approximate date, e.g. the late 1890s or to describe when something will or did happen, e.g. 'in the next few years. How many similar time expressions can you find in the article? C Complete the sentence Use an appropriate word or phrase from Exercise A or B to complete each sentence. 1. Due to rapid expansion the company had to carry out an extensive RECRUITMENT CAMPAIGN to hire new employees.


2. In..very few people knew much about the Internet. 3. ..the next few years the use of the Internet is bound to expand even more. 4. There are literally hundreds of business ....................... around the world offering MBAs. 5. Many companies now .......................... new job vacancies on the Internet and in the press simultaneously. 6. .graduates in subjects such as information technology have a lot of opportunities for their first job. 7. Our recruitment campaign was so successful that we had over 100 ................. for each job. 8. We usually invite about 5 per cent of those who apply to come for ................ , so we can meet them in person. 9. An MBA is one of the best ......................... for an international management job. D Expanding vocabulary 1. The article focuses on the subject of engineering. There are many different branches of engineering. Two are mentioned in the article - mechanical engineering and aerospace engineering. What other branches of engineering can you think of? 2. The article mentions that there is a 'steady decline' in the numbers of engineering students, leading to a 'shortage' of potential recruits. a) b) c) d) Think of at least two other words similar in meaning to 'decline'. Think of at least three words with the opposite meaning. Think of at least one word equivalent in meaning to 'shortage. Think of at least one word with the opposite meaning.

E Definitions Match these terms with their definitions. mainstay a) an influence that makes something happen global reach b) people who want to enter a training programme set to soar c) a new and imaginative way to recruit impetus d) having a presence all over the world broadened the spectrum of e) an offer open to everyone job opportunities blanket invitation f) about to increase a lot a novel campaign g) increased the range of possible jobs would-be trainees h) most important part of something OVER TO YOU 1. Imagine you work in the Human Resources department of a large international company such as DaimlerChrysler. You are attending a recruitment fair at a

1 2 3 4 5 6 7 8




major university. Prepare and give a presentation about the company and the career prospects for university graduates. You have seen a list of jobs advertised on the Internet by an international manufacturing company - they want to recruit people for technical, commercial and administrative positions. Write a letter of application, specifying which kind of vacancy you are interested in and mentioning your relevant qualifications and experience. Look at the websites of some well-known international companies. Describe their approach to recruitment using the Internet.

Before you read Discuss these questions. 1. What are the different methods a company can use to find new employees? Which are you most familiar with? Which do you think are most effective? 2. What are the most common selection methods used by companies and organisations in your country, (e.g. interviews, intelligence tests)? Do you think selection methods vary from country to country? Reading task A Understanding main points Mark these statements T (true) or F (false) according to the information in the text on the opposite page. ' 1. Many international organisations have decentralised selection. 2. They look for different personal qualities in different cultures. 3. The 'SWAN' criteria have international validity. 4. The definition of some qualities can lead to cultural misunderstandings. 5. Mobility and language capability are clearly understood across cultures. B Understanding details The text states that different cultures look for different qualities when selecting personnel. Match the cultures with the qualities or attributes according to the text. 1. Anglo-Saxon (UK, USA, Australia etc.) 2. Germanic 3. Latin 4. Far Eastern a) being able to fit in with the organisation b) having the relevant kind of education for the job c) having the right intellectual or technical capabilities d) having good interpersonal skills e) having attended the 'top' universities in the country f) being able to carry out relevant tasks and jobs C Word search Find at least five methods for testing or assessing a candidate's suitability for a job (e.g. assessment centres) which are mentioned in the text.


Recruitment and Selection

Approaches to selection vary significantly across cultures. There are differences not only in the priorities that are given to technical or interpersonal capabilities, but also in the ways that candidates are tested and interviewed for the desired qualities. In Anglo-Saxon cultures, what is generally tested is how much the individual can contribute to the tasks of the organisation. In these cultures, assessment centres, intelligence tests and measurements of competencies are the norm. In Germanic cultures, the emphasis is more on the quality of education in a specialist function. The recruitment process in Latin and Far Eastern cultures is very often characterised by ascertaining how well that person 'fits in' with the larger group. This is determined in part by the elitism of higher educational institutions, such as the 'grandes ecoles' in France or the University of Tokyo in Japan, and in part by their interpersonal style and ability to network internally. If there are tests in Latin cultures, they will tend to be more about personality, communication and social skills than about the Anglo-Saxon notion of 'intelligence'. Though there are few statistical comparisons of selection practices used across cultures, one recent study provides a useful example of the impact of culture. A survey conducted by Shackleton and Newell compared selection methods between France and the UK. They found that there was a striking contrast in the number of interviews used in the selection process, with France resorting to more than one interview much more frequently. They also found that in the UK there was a much greater tendency to use panel interviews than in France, where one-to-one interviews are the norm. In addition, while almost 74 per cent of companies in the UK use references from previous employers, only 11 percent of the companies surveyed in France used them. Furthermore, French companies rely much more on personality tests and handwriting analysis than their British counterparts. Many organisations operating across cultures have tended to decentralise selection in order to allow for local differences in testing and for language differences, while providing a set of personal qualities or characteristics they consider important for candidates. Hewitt Associates, a US compensation and benefits consulting firm based in the Mid West, has had difficulties extending its key selection criteria outside the USA. It is known for selecting 'SWANs': people who are Smart, Willing, Able and Nice. These concepts, all perfectly understandable to other Americans, can have very different meanings in other cultures. For example, being able may mean being highly connected with colleagues, being sociable or being able to command respect from a hierarchy of subordinates, whereas the intended meaning is more about being technically competent, polite and relatively formal. Similarly, what is nice in one culture may be considered naive or immature in another. It all depends on the cultural context. Some international companies, like Shell, Toyota, and L'Oreal, have identified very specific qualities that they consider strategically important and that support their business requirements. For example, the criteria that Shell has identified as most important in supporting its strategy include mobility and language capability. These are more easily understood across cultures because people are either willing to relocate or not. There is less room for cultural misunderstandings with such qualities. VOCABULARY TASKS A Synonyms


1. The word 'selection' is combined with a number of other words, all with similar meanings . (e.g. approaches to selection). Find four other combinations starting with 'selection'. 2. The word 'skill' is often used in connection with job performance. It can be defined as 'the ability to do something well, especially because you have learned and practised it'. In the text, several other words are used with a similar meaning. What are they? 3. The acronym SWANs stands for 'people who are Smart, Willing, Able and Nice'. Depending on the context, these words can have different meanings. Match each word with one of the SWAN words. a) b) c) d) e) f) g) h) charming NICE helpful clever friendly sociable competent enthusiastic enjoyable i) j) k) I) m) n) 0) p) well-dressed pleasant eager intelligent beautiful neat kind skilful

4. Which words from the list have exactly the same meaning as the SWAN words in the text? B Linking Use an appropriate word or phrase from the box to complete each sentence. for example 1. 2. 3. though whereas in addition similarly



The Internet is changing the way that companies work; FOR EXAMPLE, some use their website to advertise job vacancies. Some companies use newspaper advertisements in the recruitment process, others prefer to use consultants. With the boom in hi-tech industries, well-qualified software specialists are difficult to find; ..in the automotive industry, there is a shortage of engineering graduates. To get good management jobs, an MBA is now often a requirement; .... , knowledge of two foreign languages including English is increasingly demanded. The Internet is being used more and more as a recruitment tool, .......there are few statistics available yet about how successful it is.

C Definitions Match these terms with their definitions. 1 2 3 4 5 6 assessment the norm ascertaining elitism striking compensation and benefits a) b) c) d) e) f) finding out noticeable pay and conditions evaluation usual, standard concern for status


OVER TO YOU 1. 2. 3. 4. Make a list of qualities or skills that you think an international manager should have. Divide your list into technical skills and interpersonal skills. What are the best ways to measure or evaluate technical skills? How can you measure interpersonal skills? Look at the chart showing selection methods in different countries. Percentage use of selection methods in six different countries
Method of selection Interviews References/recommen dations Cognitive tests Personality tests Graphology Work sample Assessment centres Biodata Astrology UK 92 74 11 13 3 18 14 4 France 97 39 33 38 52 16 8 1 6 Germany 95 23 21 6 13 10 8 Israel 84 30 2 3 1 1 Norway 93 25 16 2 13 10 8 Netherlands 93 49 21 24 5 All 93 43 22 18 13 13 8 4 2

Source: Robertson and Makin (1993)

Imagine you are an HR specialist in an international company. Use this information to make a presentation about selection methods the company should use in Northern Europe. TEXT 3 1 Before you read the article, study the three charts below and answer the following questions. Then make up some questions of your own about the charts to ask each other. 1. In which managerial functions can you find the highest percentage of women directors? 2. What are the two main factors which make women feel unequal to men at work? 3. Which sector has the highest number of women managers? 4. What percentage of senior managers in sales and marketing are women? 5. What percentage of women directors feel disadvantaged by domestic commitments? 6. Which three sectors have the smallest-percentage of women managers? 7. What do these statistics say about career opportunities for women? 8. What do these statistics say about gender stereotypes?


The Economist

The Economist

Times Newspapers Ltd

2 Read paragraphs 1-3 and complete the following statistics. 1 Women make up more than .................. of the western workforce, but, in


the US as in the UK, hold just ...............................................of seats on the boards of large companies. 2 Women account for ............................................ of recent graduates in the US and ................................................... of recent graduates in Europe. 3 A survey carried out by Wick revealed that ........................................ of women leaving large companies left not because they wanted to stop work but because .

THE SPARE SEX WOMEN IN MANAGEMENT Few women get far in business. That is not just their loss, but their employers'. Hire women managers, promote them, create the right conditions to keep them, and companies will see the results on the bottom line. In black Though women make up over 40% of the western workforce, the firms they work for promote very few of them far. In America and Britain alike, women hold about 2% of big-company board seats. Where women do get to run big companies, it is not by climbing the ordinary corporate ladder. The lone female chief executive of a Fortune 500 company, Marion Sandler, of Golden West Financial, a Californian savings bank, shares the post with her husband. They bought the bank together. Katharine Graham, chief executive of The Washington Post Company until taking the chairmanship last year, inherited the firm from her father. Talented women are not the only losers when companies fail to hire them or later refuse them promotion. Assuming that most women are potentially as good at filling executive jobs as most men (quite a big if; we come to it later), those companies are limiting their pool of available management talent by around half. Of recent graduates, 52% in America and 44% in Europe are women. The company that fails to recruit them now will find its pool of middle managers inferior to that of a wiser employer in a few years' time; likewise, which matters more, its upper management ten years later, if (as is likely) it goes on displaying the same bias further up the ladder. A 1990 survey of women quitting large companies, carried out by Wick, a Delaware consultancy, found that only 7% wanted to stop working altogether. The rest planned to join other firms, to work as freelance consultants, or to start their own businesses. When BP carried out a similar exercise among graduate trainees recently, the leading reason women gave for going was not marriage or motherhood, but dissatisfaction with their career prospects. At one Johnson & Johnson unit, departing female managers complained that they had felt isolated from their male colleagues. Fellows like us Could it be that this lack of esteem is justified? Given the chance, would women really be as good at running large firms as men? Most research on the way gender differences affect women's careers lies within the murky disciplines of comparative psychology and organisational behaviour. A lot of what it says is too contradictory or anecdotal (or sometimes obviously biased from the outset) to carry much weight. Yet some findings ring true. First, people who work in large organizations have an innate tendency to hire and promote those who resemble themselves. 'Our managers are all white, middle-aged men, and they promote in their own image,' says one woman. If looking odd in positions of


power is women's first big barrier to top jobs, feeling odd in them is the second. 'People come up to you at a party, and say "Aren't you bright?" It isn't a compliment,' says a female director at a London investment bank. Men are expected to be assertive. Women are not, and often do not feel happy being so. Made to choose between being thought pushy and being actually self-effacing, women tend to choose the latter. Within mixed groups, even highly qualified women put their views less forcefully than men, and listen much more than they talk. Strident counter-examples - Margaret Thatcher is an obvious one - leap to mind just because they are so rare. In one study, researchers taped seven university faculty meetings. With one exception, the men taking part spoke more often and at greater length than their female colleagues. Slow change Senior managers' attitudes to, women's employment are changing more slowly than corporate image-makers would have you believe. Women's employment 'is much like the environment - it's seen as essentially a window-dressing question,' says one senior woman executive about her bosses. If stockmarket analysts or anyone who mattered cared about it, then they would care too.' Tokenism abounds. Such female directors are disproportionately likely to be found running bits of the firm without profit-and-loss responsibility - personnel or public relations, for instance - that offer little prospect of promotion to the top posts. Alternatively, they may be part-time advisers. Of the 30 female directors on the boards of Britain's biggest 100 companies, 26 are non-executives. It can be done If a firm does genuinely want to use the talents of women more effectively, how should it go about it? The watershed dividing different employers' approaches is positive discrimination. Some use quota schemes. At Pitney Bowes, an American officeequipment manufacturer, 35% of all promotions must go to women, 15% to non-whites. Some companies even tie managers' pay to their fulfilment of such schemes. Positive discrimination can hurt the women it is designed to help. Bosses compelled to hire women to fulfil some quota are unlikely to take them seriously. 'If you feel people are just there because you had to have them, then you work around them, not with them. Then they feel under-utilised, because they probably are,' says Nancy Gheen, a personnel manager at Monsanto. Organise accordingly The real change in the way companies think about women managers will come when they change the way they think about jobs. Most women want to have children. Raising a family requires time off, and shorter working hours, for somebody, either husband or wife. To keep good women, firms need to find ways of giving them those things, yet using them efficiently. That normally involves letting women with small children work flexible hours, not requiring them to relocate or travel at a moment's notice, or even letting them share their jobs with someone else. In exchange, women may have to accept lower pay, or slower promotion, until they return to full-time work. Such programmes have been dubbed 'mommy-tracks'. Companies exist to make their shareholders money, not to engineer social change. Though mommy-tracks are to firms' ultimate advantage, since they help keep good staff, in the short term they will sometimes prove to be inconvenient and expensive. In the irritation of having to change their ways, employers should not forget to take into account the costs of turnover among employees. Part of the money spent training those who leave


has gone down the drain. And back-of-the-envelope calculation of the costs of replacing a manager of ten years' standing, earning $70,000, suggests that the time it takes the new manager to get fully on top of the job is worth $25,000. If a replacement has been sought from outside, headhunters' fees, advertising and interviewing could double that. Sisters, chief executives, your interests coincide. One day your identities might too. 3 The rest of the text is divided into four sections, each with a separate heading. Read each section in turn, noting the main points in the following chart. When you have finished, compare your notes in small groups. FELLOWS LIKE US




How does the position of women in the US/UK compare with the position of women in your country? How do you feel about opportunities for women? Working in pairs, make mini-presentations to each other on one of the following topics. Feel free to state your personal opinion and use your notes from Text 2 to help you. The role of women in management. Managerial prospects for women. The employment of women - past, present and future. LISTENING 1 You are going to hear John Lawrence, Human Resources Manager at Ilford Ltd., talking about Impact. From what you know of the programme already, try to predict how he might answer the following questions. Then listen and note what he actually says. 1. What are you trying to change? 2. How are you going about this? 3. How far have you got? LISTENING 2


Listen to the second part of the interview with John Lawrence and make notes under the following headings. the immediate and long-term future the current position the process of change the Ilford culture WRITING Use your notes from Listening 1 and 2 to write a brief follow-up article to Text 1, updating readers on developments at Ilford. DISCUSSION QUESTIONS 1. What do you think? How far do you agree with the following statements? 1. People are the most important resource a business has. 2. Management should always use the negotiating machinery of union to make organizational changes. 3. Changing the pay system of a company will usually be resisted by the unions. 4. Length of service not ability/responsibility should determine an employees salary. 5. Most country neglect the talents of women in the workplace. 6. Business should do more to encourage women employees. Answer the following questions. Then discuss your answers in small groups. 1. What do you know about union-management relations in Britain? 2. What are industrial relations like in your country? 3. Do women have equal employment opportunities in your country? 4. How easy is it for women to reach senior positions in your country


1. Discuss the following questions. 1. What is a 'headhunter? 2. Do you react in the same way to the term 'executive search consultant? 3. What other recruitment methods can you think of? 4. What are the advantages and disadvantages of each one?


What do you think? 1. How would it feel to be 'headhunted? 2. Is the poaching of senior personnel from a company simply part of executive life, or is it an unethical activity? 3. In western countries, executives tend to switch jobs several times in their careers, whereas in Japan, with its policy of lifetime employment, most executives stay with one company throughout their working lives. Which system is better for the employer? And for the employee?


TEXT 1 1. Before you read the text look at the title and subtitle. What do you think the article is about? Choose the best answer. a) how to attract the attention of headhunters b) what to do if you receive a phone call from a headhunter c) how to become a headhunter 2. Read paragraphs 1 and 2 and summarise the trends and statistics quoted in your own words.

Bait for the headhunters

That unexpected phone call offering a plum job with another firm isn't always just a matter of chance. Given a little planning, the talent scouts can be directed to your door. Stephanie Jones explains how.

"NATURALLY, I was headhunted into my present job," a typical City whizz-kid boasts. "Headhunters ring all the time. During Big Bang they phoned us so often that we put their calls over the office loudhailer. Then we'd have a laugh when * the headhunter said: 'Confidentially, I have a uniquely exciting opportunity that might just interest you...' " Being headhunted is not only for young bloods and famous chief executives. Almost 90 per cent of the top 1,000 companies use executive search consultants to find senior people. In the last few years they have been joined by smaller companies, accounting and law firms, chartered surveyors, architects, private hospitals, the media, and even local authorities and Government departments. So how do you attract those ego-trip phone calls which spell a new career opportunity? John Harper, 33, has been headhunted three times. His first job was as a graduate trainee with Procter & Gamble where, after five years, he was a brand manager on Pampers, which he had launched in the UK market. He was invited to Kenner Parker (the American toy and games manufacturer responsible for Trivial Pursuit, Monopoly and Care Bears) where in five more years he rose to be European marketing and operations director. Then he was lured away into Avis, the car-hire giant, and two years later headhunted again into the job he started last week as international marketing director for Reebok, the sportswear company. He won't quote figures, but each time he moved his salary and benefits showed substantial improvement. Not one of these positions was advertised. Indeed, before his latest move he was not considering a career change at all. So his advice to those hoping to hit the headhunt trail is born of experience: First, start out with a large international company. Procter & Gamble, Unilever, Shell, IBM and Mars, for example, offer not only excellent training but a readymade network of contacts around the world, arguably more helpful to a career than being a Harvard alumnus. Secondly, ensure you are noticed by superiors. Headhunters frequently find people through referrals from a source, usually a more senior person who suggests suitable names. Successful and highly-respected mentors should be cultivated, so that they will think of you when approached.


Thirdly, make an impression outside your company. The research departments of search firms take note of executives mentioned in the Press and trade journals. You can't be sure exactly which particular self-publicising effort led to an approach (headhunters rarely reveal how they found you, and it is naive to ask) but developing a profile stands you in good stead. Whenever Kenner Parker was launching another toy or game, John Harper's name repeatedly cropping up in Marketing, Marketing Week and the Financial Times played a useful part in his progress. Fourthly, when you want to move and don't stay in the same job, with the same company, for more than five to seven years - make it known. According to Harper it's rare, and only when you're hitting the big time, that a headhunter will call out of the blue. Most headhuntees have put out the word that they are looking, and have taken the initiative by sending their CV to selected research consultants. When moving from Kenner Parker to Avis, Harper passed his CV to fifty searchers, identified through friends, contacts and other headhunters. The likelihood that one of the search firms will be looking for someone just like you is remote, so it's wise to cast your net widely. Harper was headhunted into Avis by Bruce Rowe of Rowe International in Paris - not only one of his targeted search consultants, but a fellow ex-Procter & Gamble man, which underlines the value of his first piece of advice. Finally, keep in with headhunters. This includes a willingness to act as a source. Harper admits he would not recommend anyone he was currently working with it would conflict with his allegiance to his employer. But he will mention outstanding people he has worked with in the past.
The Daily Telegraph

2. Read paragraphs 3-7 and complete the following record card.


3. Read the rest of the text, and summarise John Harper's advice to would-be headhuntees in the following chart You will need to infer the reason for his fifth piece of advice. The first one has been summarised for you. advice

reason Excellent training and an immediate circle of contacts

Start with a large international company

2 3 4 5 VOCABULARY What do the underlined words in the following sentences from Text 1 mean? Choose appropriate substitutes from the list. marked flattering excellent highlights let it be known represent behind visible persuaded appearing very successful changed jobs 1. '... how do you attract those ego trip phone calls which spell a new career opportunity?' 2. '... the American toy and games manufacturer responsible for Trivial Pursuit, Monopoly and Care Bears . . .' 3. 'Then he was lured away into Avis . . .' 4. '... each time he moved his salary and benefits showed substantial improvement.' 5. '... developing a profile stands you in good stead. 6. 'John Harper's name repeatedly cropping up in Marketing, Marketing Week and the Financial Times. . .' 7. '... [it's] only when you're hitting the big time, that a headhunter will call out of the blue.' 8. 'Most headhuntees have put out the word that they are looking . . .' 9. '... which underlines the value of his first piece of advice.' 10. '... he will mention outstanding people he has worked with in the past. TEXT 2 1 Read the advertisement and complete the following summary. This advertisement was placed by .., a company with offices in .. and . . As a result of ., the company is looking for two .. should or send a to .. quoting .. . 2 Which of the following must candidates be able to offer? a) two European languages (including mother tongue) b) the ability to grow professionally c) evidence of excellent interpersonal skills d) managerial skills e) energy and creativity


f) g)

a postgraduate qualification work experience in a similar field

LISTENING 1 1 In this interview, you will hear Francis Wilkin, an Executive Search Consultant at Russell Reynolds Associates, talking about his job. Listen and take notes under the following headings. the role and status of the headhunter areas of corporate and personal specialisation the distinction between executive search companies and recruitment agencies the type of people headhunters target methods used to identify candidates the 'craft' and 'art' of headhunting 2 Listen again and answer the following questions. Francis Wilkin mentions the following figures. What do they relate to? 50% 60,000 15,000


LISTENING 2 1 Listen to the second part of the interview with Executive Search Consultant, Francis Wilkin, and check whether the following statements accurately reflect what he says. 1. Headhunting fees are not based on an accepted 'industry standard'. 2. There are two opposing forces at work in a person considering a job change. 3. People who are dissatisfied with their current salary are perfect targets for headhunters. 4. Closing a deal is the hardest part of the search process. 5. Clients have no redress if a selected candidate should leave soon after joining the company. 6. Headhunters sometimes fail to finalise a deal for apparently rather trivial reasons. 2 Listen again, taking notes on the key points. Then summarise what Francis Wilkin says on the following subjects: headhunters' fees/salaries the search and selection process an 'embarrassing moment'

DISCUSSION QUESTIONS 1. 2. 3. 4. Why are there so few women in senior managerial positions? Should this situation change? If so, do you think it will change? How? When? What advantages or disadvantages would a larger proportion of women in management positions bring to business in general? Do you support affirmative action or positive discrimination programmes which attempt to employ women or members of minority groups in preference to equally qualified white male candidates?

Nick Burford, an Executive Search Consultant, received the following brief from a US company, Hi-Style Inc.



Company Background
Head office: European HQ: Turnover: Products: Main markets Job Specification Position: Location: Duties: Salary New York, USA Zurich, Switzerland 350 million Clothing; perfume; beauty/health products USA, Switzerland

Marketing Director, Europe based at European headquarters Oversee all aspects of the companys marketing in Europe; Implement new strategies for expansion in Europe Minimum 120,000 (negotiable) and substantial benefits package, including revocation expenses

Person Specification
Essential Qualifications: Skills: degree; marketing diploma or specialisation good communication skills; fluency in two European languages (one must be German); excellent negotiating skills marketing upmarket fashion and health/beauty products in Europe hard-headed, innovative; able to work in a team; leadership qualities Desirable MBA IT expertise


experience of developing new distribution outlets even-tempered, outgoing, creative


Having indentified and interviewed a number of possible candidates for the post, Nick Burfords recommendation to Hi-Style management was Peter Kahn, currently European Marketing Director at Cosmetics International. Hi-Style decided to offer Peter Kahn the job and asked Nick Burford to set up a meeting with him to discuss the terms and conditions of employment. DISCUSSION Nick Burford made the following notes when he met Peter Kahn. Read them and discuss the questions that follow.


1. How might this information affect Peter Kahn's decision on Hi- Style's job offer? 2. How might it affect his negotiation position (objectives, limits, strategy) when it comes to discussing terms and conditions?


Job applications One day, you will apply for your first job as a business graduate. Unfortunately, many of your classmates, as well as lots of people you don't know, will probably also apply for the same job. Your experience and qualifications will probably be quite similar to those of most of the other candidates. You will submit a copy of your curriculum vitae (GB) or resume (US). But how do you get on to the preliminary short-list? What kind of things do you think impress companies hiring business graduates? Which of the following extracts from different CVs (resumes) or application letters do you think would help the candidate to get an interview, and why? 1


2 My mother is French, and because my father works for a multinational company, I grew up in-four different countries. I did all my schooling in French, but I also speak (and write) fluent Spanish and Portuguese. I can also understand (North African) Arabic, but speak it less well.


Study the following words and phrases allegiance approach ascertain assessment attempt be bound to boast bulk coincide compel contribute decline ensure establishment esteem extend face fit in flatter freelance headhunter hire impetus inherit launch let alone lure away merger murky plum job resemble rival root shortage soar spell survey sustain turnover ultimate whizz-kid

Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. Andrew Carnegie Explain: what you understand by the word "team"; whether you think its role important/ unimportant in an organization, why; what qualities a team should possess'; what you think of informal groups in a team; whether there should be a leader in the team; what qualities should be required of such a team leader; if you think you might play the leading role in a team.

TEXT 1 1. 2. 3. 4.

Read the article and answer these questions.

What is the difference between the past and the present in terms of the key to success in a career? What does the writer say about competition in the first paragraph? In the second paragraph what does the writer say you need to be a good team player? What three points does the writer make about effective teams in the third paragraph?



6. 7.

According to the writer which of the following attitudes should team members have? a) We know exactly what we are trying to achieve. b) I will lead when necessary. c) People value my work. d) I speak when invited by the team leader. e) I am encouraged to be very critical of colleagues' opinions. Why does the writer think that cultural differences do not have a big influence on teams? What is the difference between Thai and Western team members?

Discuss the following statements. 1. A team always needs a leader. 2. A team should change its leader regularly. 3. Tension between team members makes a team more effective. 4. Teams need people with similar personalities in order to succeed.

None of us is as smart as all of us

By Howard Cant A good, team player has the key to success. Being the smartest, being the brightest, being the hardest; all of these attributes that worked so well in business in years gone by, now will not push you up the ladder quickly. How good a team player you are and how well you share your knowledge with your colleagues is the all-important factor in growing your career today. If you can build a company culture that does not worry about who gets the credit for something, think about what you could achieve! To survive in the big bad tough working environment of today you don't need to have your own people competing with each other. It is the commercial 'enemy' against whom all their energy should be focussed. It's not always easy to be a good team member and compromise your own views for the good of the whole, but it works for the betterment of the company. You have to believe in the workings and power of the team and recognise where your own strengths and contribution fit in. You have to be honest, both with yourself and with your team members. You will have conflict within the team and as long as this is controlled then it can be a very healthy element for both the team and the development of the business. Research into high-performing teams shows that each member cares for the development of his team mates. This appreciation of each other's learning and development is key to the success of a team and the commitment of each member to the other. Over 70% of a manager's time is spent in some form of group activity, often in meetings with others; relatively little time is spent in the supervising of single individuals or on one-to-one discussions, thus the need for team building. Indeed, the success of individual managers depends on how well that manager's team or teams improve in quality and productivity on a continuous basis. In reality, group productivity is more important than individual task accomplishment. The most effective teams are able to solve complex problems more easily than one person can, for many capable minds are brought to bear on an issue. However, all teams must be managed well by a capable facilitator who understands that every team is unique, dynamic and ever-changing. Moreover, teams have behaviour patterns, just as individuals do and, just as children develop into adults, teams have developmental stages, being more productive and efficient at one stage than another.


It is also extremely desirable for team members to have the following attitudes; 'I know what I have to do and the team's goals are clear', 'I am willing to share some responsibility for leadership', 'I am an active participant', 'I feel appreciated and supported by others', 'Other team members listen when I speak and I respect the opinions of others', 'Communication is open, new ideas are encouraged and we are having fun working together'. Teams soon develop a clear problem-solving approach that can be applied time and again as long as their leader initially creates a common purpose and vision, pointing the team in the right direction. Cross-cultural issues can assail and impact the working of teams, but it is well to remember that, despite culture, most team members have similar objectives in life. Objectives that relate to happiness and health, to success and recognition, to love and being well-accepted by others. The clever team leader recognises and plays upon these similarities while moulding the cultural differences to benefit the team. For example, Thai team members place a greater focus on personal relationships in everything they do while Western team members are looking more for personal achievement. From Benjarong Magazine, Thailand THE ART OF MANAGEMENT AND TEAM-BUILDING Write a brief profile of yourself outlining your personal qualities and highlighting any strengths and weaknesses you feel you have. Then write a brief profile of your partner, outlining his or her strengths and weaknesses as you see them. Use the list of personal qualities to help you. When you have finished, work with your partner and compare the profiles you have written. Discuss any differences between them and try to agree an 'accurate' profile of each other. Strengths Confident, enterprising, humorous; ambitious, helpful, forceful, competitive, open to change, thorough, tolerant, caring, prudent, focused, supportive, generous Weaknesses Arrogant, opportunistic, frivolous, ruthless, controlling, bullying, combative, wishy-washy, obsessive, uncaring, nosy, indecisive, tunnelvisioned, interfering, irresponsible

Complete the following self-analysis questionnaire. True 1. 1 reckon 1 can do things as well as most. 2. It's not easy being me. 3. When I have to make a presentation, I'm terrified of making a fool of myself. 4. It's not often that 1 think of myself as a failure. 5. There arc lots of things about myself I'd change if 1 could. 6. 1 am rarely bothered by other people's criticism. 7. Other people tend to be more well-liked than I am. 8. If I have something to say, 1 usually go ahead and say it. False


9. 1 don't often feel ashamed of anything I have done. 10. When people say complimentary things about me 1 find it hard to believe they really mean it. Score two points for each True answer to questions 1, 4, 6, 8 and 9; score zero for every False answer. For questions 2, 3, 5, 7, 10, score two points for each False answer; score zero for each True answer. The higher your score, the better the opinion you have of yourself. A score of 14 or more suggests that you are quite confident: not necessarily conceited, but you certainly like yourself well enough, and theres no danger of other people being made to feel uncomfortable by any signs of self-loathing in you. TEXT 2 Read the text and study the chart. Then, working in pairs, try to decide which of Dr. Belbin's personality type(s) you represent. Successful teams One of the most important functions of a manager is to build a team which will perform effectively and contribute to the success of a business. The art of team-building has been studied by many people, but possibly the most interesting work on the subject has been done by Dr Meredith Belbin. His original insight has been to identify the individual roles which are crucial to a successful team. He argues that while individuals in a management group have their formal job titles - accountant, designer, marketing director, production manager, etc. - they also perform a variety of personality team roles': the ideas person, the organiser, the unorthodox genius, the stickler for detail, the diplomat, and so on. Dr Belbin's team-role theory states that there are nine key personality types and a team will work most effectively if it has them all. However, a successful team need not be made up of nine members since some people may be more than one personality type. Thus a team of three could work together very successfully if, among them, the members combined the nine personality types.
Type Company Worker Chairman Symbol CW USEFUL PEOPLE TO HAVE IN TEAMS Typical Features Positive Qualities Allowable Weaknesses Conservative, dutiful, Organising ability, practical Lack of flexibility, predictable. common sense, hardunresponsiveness to working, self-discipline. unproven ideas. Calm, self-confident, A capacity for treating and No more than controlled. welcoming all potential ordinary in terms of contributors on their merits intellect or creative and without prejudice. A ability. strong sense of objectives. Highly string, outgoing, Drive and a readiness to Proneness to dynamic. challenge inertia, provocation, ineffectiveness, irritation and. complacency, or selfimpatience. deception. Individualistic, serious Genius; imagination, Up in the clouds,







minded; unorthodox.

Resource Investigator


MonitorEvaluator Team Worker CompleterFinisher






inclined to disregard practical details or protocol. Extroverted, A capacity for contacting Liable to lose enthusiastic, curious, people and exploring, interest once the communicative anything new. An ability to initial fascination respond to challenge. has passed Sober, unemotional, Judgement, discretion, Lacks inspiration or prudent hard-headedness. the ability to motivate others. Socially-orientated, An ability to respond to Indecisiveness at rather mild, sensitive people and to situations, moments of crisis. and to promote team spirit. Painstaking, orderly, A capacity for followA tendency to worry conscientious, anxious:; through. Perfectionism; about small things. A reluctance to let go. Single-minded, selfBrings knowledge or skills Contributes only on starting. in rare supply; narrow front.

intellect, knowledge.

CAN YOU COPE WITH DIFFICULT PEOPLE? Obviously, most people are difficult sometimes. But difficult people can be identified as those who are considered to be problems by most people around them for most of the time They ban be divided into seven categories and there exist different ways of dealing with each of them. Look at the names for the seven categories and then read the seven definitions. Match each name with its corresponding' definition.

I) The Sherman Tanks

2) The Complainers

3) The Clams

4) The Super-Agreeables

5) The Baloons

6) The Negativists

A. They always say nice things to your face even if they do something different behind your back. They arc difficult people because they make you believe they agree with you even when they don't. They need to be popular all the time. B. These people do not just delay the decision-making process but avoid it altogether. C. They are phonics. They speak with great authority on subjects about which they know nothing. D. They arc silent and unresponsive. Just when you need an answer you get a few words or just one word- or a grunt. E. They arc always pessimistic about everything. They are convinced, that failure is inevitable and often manage to persuade those around them that this is true. F. They are abusive, abrupt, intimidating,


7) The Indecisives

arrogant and impatient G. These people grumble all the time but never try to do anything to solve the problems they complain about. They find fault with everything and always imply that 'someone' is responsible

LISTENING 1. On the cassette you will hear seven people talking. Each person is identified by a letter (A-G). Decide which name best describes each person you hear and put the correct letter next to the name. 1 Sherman Tank . 2 Complainer ......... . 3 Clam ......... . 4 Super-Agreeable ...... . 5 Negativist ......... . 6 Balloon ......... . 7 Indecisive ......... . 2. Now you will hear seven sets of suggestions for dealing with the seven types of difficult people. Each set of suggestions is identified by a letter (A-G). Try to match the set of suggestions to the correct name. 1 2 3 4 5 6 7 Sherman Tank Complainer Clam Super-Agreeable Negativist Balloon Indecisive ......... . ......... . ........ . ........ . ........ . ........ . ........ .

There is one other category of 'difficult people' identified by Dr Bramson. This is the 'Bulldozer'. Read the definition of the machine called a bulldozer and then write down in the table how you think the Bulldozer behaves, and suggest ways of dealing with him or her. When you have finished discuss your ideas with a partner, then compare them with the Answer Key.

Name Bulldozer


Ways of dealing with them



Stages of Team Development

As a supervisor, your job is to build the members of your formal work group into a productive team. Knowing how groups develop into teams will enable you to select the appropriate techniques to lead employees toward greater productivity and job satisfaction. Members of a group typically pass through a number of stages as they develop into a team. These stages are: 1. Membership; 2. Individual influence; 3. Shared feelings; 4. Respect for individual differences; 5. Productive teamwork. These developmental stages can be identified by the kinds of questions that members often ask themselves about their relationship to the group. The following sections examine each stage in detail. Membership. Individuals who are new to a work group generally pass through a membership stage during orientation and the first few days on the job. Although new members of the staff may want to become part of the work group, they rarely function as productive members until some of their initial concerns are addressed. These individuals are likely to have these concerns: - How will I benefit from membership in the group? What can I contribute in order to be accepted? - What will my supervisor and co-workers expect from me? What are my expectations of them? - How will I find out what is really important to the group? What are the group's goals? Are they in line with mine? - Will I find that being a member of the group is boring or exciting, threatening or rewarding? - Is this a career or just another job? On the other hand, existing members may have questions about a new member of the group. These questions or concerns often need to be resolved before the new member becomes accepted by the group. Existing group members are likely to have these concerns: - Can I trust this person? - Can I work effectively with this person? - Will this person become a cooperative team player? If there is high turnover in the department, new members will always represent a significant percentage of the work group. This can seriously slow the development of the work group into a productive team. Every effort should be made to address the concerns of new staff members. Supervisors who are caught up in the pressures of day-to-day operations may unintentionally overlook the very basic concerns of new employees. You can address many of these concerns by clearly communicating what you expect from the new employee in terms of compliance with company policies and progress in training sessions. 1. Characterize the membership stage for the new staff member and for the accepting team using key terms


- benefit from membership; - to be accepted; - contribute to; - expectations of; - in line with.

- trust; - work effectively; - cooperative teamworker; - compliance with company policies; - progress in training.

Individual Influence. After new employees understand what it means to be members of the work group, they begin to think about how they and others influence the way things get done in the department. For example, they may ask themselves such questions as: Who has the most power to influence people in this department? Who are the strong formal and informal leaders? How are others in the work group influencing me? Who am I learning from? How are others in the work group influencing each other? Is there really a team effort? What opportunities are there for me to influence others in the work group? Can I become an informal leader? These are typical concerns that individuals have during the first few weeks on the job. Supervisors can address these concerns by interacting with the employee in ongoing training and coaching sessions. You can also create situations in which the employee interacts with the informal leaders who foster cooperation and teamwork within the department. 2. Characterize the individual influence stage using key terms: - formal/informal leaders; - the influence on the new employee (novice) and on each other; - learning from; - new employee's own role in the team. Shared Feelings. When individuals become comfortable with one another as members of the work group, the feelings of the members become more and more important. Concerns that individuals may have include: Can I freely express my feelings in this work group? Will the other members accept constructive criticism? Is the work atmosphere open and honest? When I'm under stress, frustrated, or angry, can I work things out with the group? When members criticize ideas or express negative feelings, do others see it as honest feedback that can help produce better results, or do they see it as a clash of personalities? When members agree with others or express positive feelings, do others see it as honest feedback that can help produce better results, or do they see it as in sincere patronizing? This is a critical stage in the development of the work group as a team. When feelings are properly addressed, members will value what they have in common. This bond of shared feelings is the basis for members to develop respect for individual differences 3. Speak on the third most critical stage "Shared feelings" using key terms: becoming comfortable with each other;


free expression of feelings; acceptance of constructive criticism; honest feedback to produce better results; not as a clash of personalities but of...; appreciation of common values.

Respect for Individual Differences. If enough trust develops within the work group during the stage of shared feelings, the group will become even more successful as members feel free to contribute their unique abilities and talents. During this stage, members come to value their differences more than their similarities. The focus of each member switches from individual to group concerns. Members are more likely to phrase their concerns in terms of the full group. The word "we" begins to replace "I." A new set of questions becomes important: - Do we take the time and effort to learn about the knowledge, experience, feelings and attitudes of one another? - In sharing ideas, do we look forward to the reactions of others and value their feedback? - Do we let others know that we appreciate their opinions and comments, even when we don't necessarily agree with them? Do we provide positive reinforcement even if we don't completely agree? A good way of looking at this stage of development is to see the group as eager for a conflict of ideas not for a conflict of personalities. Personality conflicts can be avoided if members are able to speak freely and see criticism as honest feedback. 4. Give summary of the stage "Respect for Individual differences" using key terms as your plan - coming to value differences more than similarities; - focusing on group concerns; - replacing "I" for "we"; - learning about the backgrounds of others; - appreciating the feedback and comments (though disagreeable) of others; - expecting a conflict of ideas not personalities. Productive Teamwork. As the work group begins to value the individual differences among its members, the group becomes a productive and creative team. Members know they can learn from one another and they take advantage of opportunities to grow personally and professionally. At this stage, members are likely to express the following concerns: Are we spending our time looking for the causes of problems, or are we just complaining about problems and talking them to death? Are we using our time wisely as a team? When we identify problems, do we follow a process that analyzes them thoroughly, or do we jump at the first solution that comes along? Do we plan together? Do we take the time and effort to seek the ideas, opinions, and reactions of those affected by the problem we are trying to solve? Do we have a genuine concern for the welfare of others? 5. Say what is meant by productive teamwork using the key terms: learning from one another;


growing personally and professionally; looking for the causes of problems; analyzing problems thoroughly; seeking opinions of those affected by the problem we're solving. 6. Answer the questions:

1. 2. 3. 4. 5.

What is your job as a supervisor? What are the stages of team development? Why is it so important to know the techniques of team development? Which of the stages do you find most worthy? Why? Do you know anything about this team development scheme usage in our country?

7. Give summary of the Team Development" text using all the key terms as prompts. If you want to build a high-performing team It is important to do It means doing (understanding your goals and roles) necessary You are expected to be imaginative/obliging/ essential understanding/effective significant conscientious/tolerant and extremely important patient/resourceful/flexible really essential You are supposed to have a strong character/personality You must/should be You are expected to compete and challenge each other's ideas. You should not be afraid of new ideas. Team workers should not be afraid of taking risks. What a team needs to succeed Common goals: you must be clear about what you want to achieve and how you propose to do it. Though the goals may change over time, each member should clearly understand what they are at any point High targets: you need to set challenging performance objectives. Leadership: the team needs people who are respected and influential enough to get others to listen to them. Effective leaders are good communicators and know how to involve everyone including those who are reluctant to play their part. Interaction/Involvement of all members: each person's contribution must be heard, valued and acknowledged. The challenge for the leader is to enhance self-esteem by avoiding favouritism and encouraging individuals to express themselves. Open communications: team members need to know that channels of communication are open, that they can speak their mind, share information, discuss issues, make suggestions and bring up new ideas.


Decision-making power: tasks should be centred around things the team has the power to influence. Attention to process: from the outset a team needs to be clear about how they are expected to complete a task -how the work will be structured and distributed, and the ground rules of working together. Mutual trust: trust and support should develop with time, provided people can talk freely about their fears, problems and limitations, and receive help and support from others. Respect for differences: members need to feel free to disagree and be different from others. Constructive conflict resolution: it's a question of balance. People need to be able to disagree and give and take frank criticism without resorting to personal attacks and losing respect for others. Commitment to solving problems jointly: finding solutions to complex or major problems is the biggest challenge for a project team. To succeed, team members must cooperate and pool their experience and skills. Role clarity: members need a clear understanding of what is expected of them and why their contribution is vital to the success of the team. Without such clarity, members may compete unproductively, duplicate tasks and become demotivated and confused. Roles must of course be matched to strengths and skills.

LISTENING You are going to hear Peter Wallum, Director of Strategic People, talking about people management. Listen and take notes under the following headings. Strategic People team-building: obstacles and problems management training 'Dilemma' the ideal team culture mavericks DISCUSSION QUESTIONS 1. None of us is as smart as all of us. Do you agree? In what situations is it true or not true? Give examples. 2. Can two men be an effective team? 3. Is it possible for one person to manage with the strengths of each executives, and to minimize the weaknesses of each? How?


Universal Systems PLC specialises in computing and office automation systems for the financial services sector. Dennis Mitchell, the company's top salesman and an outstanding systems analyst, had always been a difficult person to manage, but his unconventional behaviour was starting to cause real problems at the firm. 1 Listen to Dialogue 1 between Managing Director, Jack Cooper, and Technical Director, Philip Seymour and note the main points. Dennis Mitchell was an exceptionally brilliant student at university, graduating in computer science with first class honours. After leaving university, he worked briefly for a scientific research institute, then left and spent the next 18 months travelling around the world. He then joined Universal Systems PLC as a salesman. He was top salesman in his first year and within three years was earning more than everybody else in the firm thanks to the performance-related commission system. 2 Listen to Dialogue 2 between Jack Cooper and Dennis Mitchell and note the main points. Unfortunately Jack Cooper's conversation with Dennis made very little difference: not only did Dennis continue to behave inconsiderately towards his colleagues, he became more and more erratic. Having demanded his own office space partitioned off from the rest of the sales team, he started playing his radio loudly because it helped him to be 'creative'. Then, one day without warning, he disappeared for almost a week and no one had any idea where he was. When he finally turned up it was to announce that he had clinched a major deal with a prominent Saudi Arabian bank which the company had been pursuing for some time. He was very pleased with himself, but no one else was. 3 Listen to Dialogue 3 between Jack Cooper, Robert Barrett, Personnel Director, and Heather Crompton, Head of Sales and note the main points. It's time for Jack Cooper to have another talk with Dennis Mitchell. Divide into two groups according to whether you will role-play Dennis Mitchell or Jack Cooper in the negotiation that follows. Discuss the situation at Universal Systems PLC and analyse your position.

Group 1: Dennis Mitchell Decide on three reasons for staying at the company, two reasons for being uncertain whether to stay or leave, and one reason for leaving the company.

Group 2: Jack Cooper Decide on three reasons for keeping Dennis Mitchell, two reasons for being uncertain whether he should stay or leave, and one reason for getting rid of him.

Role-play: Negotiation
Work in pairs, one of you playing Dennis Mitchell, the other playing Jack Cooper. Read your role-card and prepare for the negotiation carefully. Try to agree a workable arrangement that will resolve the situation.


Dennis Mitchell You want to stay at Universal Systems but not at any price. Think carefully about your objectives/strategy. Drawing on your group discussion, draft your negotiating position on paper, outlining the concessions you want from the company -and the concessions you are prepared to make. Try to reach an agreement with Jack Cooper

Jack Cooper Universal Systems is prepared to keep Dennis Mitchell, but not at any price. Think carefully about your objectives/strategy. Drawing on your group discussion, draft your negotiating position on paper, outlining the concessions you want from Dennis Mitchell - and the concessions you are prepared to make. Try to reach an agreement with Dennis Mitchell


Team-building Form management teams of at least three but no more than nine people. Elect a leader and discuss the personality composition of your team, using Dr Belbin's classification. Summarise your collective strengths and weaknesses on paper. Then try to 'complete' your management team by headhunting the personality type(s) you lack from the other teams.

Study the following words and phrases accomplishment conscientious appropriate curious arrogant disregard assail enable clash encourage commitment enterprising competitive fascination complacency frivolous compete impact inspiration irresponsible merit mould mutual trust nosy obsessive painstaking prejudice proneness prudent reluctance respect seek sober supportive thorough threatening welfare wishy-washy


LEAD-IN 1. Which of the following would motivate you to work harder? Choose your top five and rank them in order of priority. Explain your priorities. bonus more responsibility working for a successful company bigger salary threat of redundancy a better working environment commission hard-working boss promotion opportunities praise good colleagues perks or fringe benefits 2. Discuss these questions. 1 A recent US survey showed children preferred parents to go out and earn money rather than spend more time with them. What does this show, in your opinion? 2 Would you prefer a male or female boss? Why? 3 For what reasons might you change jobs? How often would you expect to do so in your lifetime? Is changing jobs often a sign of success in your culture? TEXT 1 1. What kind of perks would you like to have when joining a new company? 2. In which lines are these ideas mentioned? 1. money is a less important motivator than a caring company 2. giving employees more choice how they organise their time away from work 3. the disadvantages of offering perks 4. creating an atmosphere and culture which employees feel they belong to 5. examples of up-market perks offered by technology companies 6. the increased benefits being offered to employees 3. Look in the article to complete these word partnerships. For example: personal problems 1 personal problems 5 common .................. 2 financial ................... 6 social .................. 3 top .................... 7 corporate..... 4 general ................... 8 employee ................. 4. Complete these sentences with word partnerships from Exercise 3 1 He has resigned after having a lot of.this year. 2 Building upis important with unemployment at a record low. 3 Our.is in charge of running the company and for making joint strategic decisions with the CEO. 4 The new CEO transformed the bureaucratic..to profit-minded entrepreneurship. 5 Companies who pollute the environment are ignoring their ethical and .. .. . 6 The .. should get the biggest bonuses. 7 We need to use logic and ........................................ not our emotions to make this decision.


Perks that work

By Robert Burke Keeping people happy is an increasingly tough trick. With unemployment at record lows, 'companies are trying just about anything' to retain -employees, says Jay Doherty of the New York-based human-resources consulting firm William M. Mercer Inc. Not only are employees being pampered, they're getting more money, better benefits and help with personal problems such as child care and financial planning. Bosses once shunned such intervention. Retention 'is no longer a human resource issue, it's a business issue,' Doherty says. Because technology companies face the tightest labor markets, they have been the most aggressive in devising ways to keep workers. Herndon-based Net2000 Communications, for example, puts top performers behind the wheel of luxury cars like a BMW 323i or Z3. MicroStrategy, a Vienna-based data miner, goes a step further and has hosted all of its employees on Caribbean cruises. Such perks are great for the employee, but do they make sense for the company? Maybe. Doherty says all companies -including technology firms -'have to be careful they don't create a business model that's not profitable.' Don't throw money at workers who want to leave because pay raises don't always work. Perks and benefits can be effective, but they have to be custom-fit to the company and the business sector. Don't add new perks just because they seem like hot trends, he says. 'Too often there's a desperation sometimes to just try anything, and it's very expensive.' MicroStrategy, which reported lower earnings earlier this year, has been rethinking its cruises, for example. Yet companies still face labor crunches that can really hurt. How do you keep workers? Start by making them feel they're part of a special place with a unique culture. 'We want to hire people that are totally aligned with our values,' says Tim Huval, general manager for South Dakota-based Gateway's 2,200-employee call center and manufacturing facility in Hampton. 'Honesty, efficiency, aggressiveness, respect, teamwork, caring, common sense and fun. Those are values that we live by.' Richmondbased Xperts also lives by the value system. Founder and CEO William Tyler pushes pairing quality of life with a sense of social responsibility. Workers can designate which non-profit groups Xperts contributes to, for example. A strong culture makes it hard for people to leave, Tyler says. 'They don't have an urge to leave because they've found a home. They're happy.' Notice this corporate culture stuff doesn't say much about shareholders or profit. It's a decidedly employee-centric approach. 'If you ask any of them, they're all going to say, "Pay me more money." But that's not the truth,' Tyler says. 'What people are looking for is, "A place that's looking out for me.'" What that means is helping employees cope with problems they face outside the office. 'That is where companies can build employee loyalty,' says Barbara Bailey of William M. Mercer's Richmond office. One popular tool is revamping leave policies to create 'flexible leave banks' that put all employee leave into a single category. Employees take time off when they need it and don't have to call it a sick day or vacation. 'Work-life issues are huge,' Bailey says. 'You make them feel as though they're not no interested in looking elsewhere, because they're very happy with their life.'
From Virginia Business Online

Discuss these statements. 1. Companies should be fully involved in the lives of their employees.


2. 'Sick days' are a perk. 3. A pay rise is better than a job in a caring company.

TEXT 2 A well-known theorist of the psychology of work, Frederick Herzberg, has argued that many of the features listed above do not in fact motivate people. Read the following text and find out why. 'SATISFIERS' AND 'MOTIVATORS' It is logical to suppose that things like good labour relations, good working conditions, good wages and benefits, and job security motivate workers. But in Work and the Nature of Man, Frederick Herzberg argued that such conditions do not motivate workers. They are merely 'satisfiers' or, more importantly, 'dissatisfiers' where they do not exist. 'Motivators', on the contrary, include things such as having a challenging and interesting job, recognition and responsibility, promotion, and so on. However, even with the development of computers and robotics, there are and always will be plenty of boring, mindless, repetitive and mechanical jobs in all three sectors of the economy, and lots of unskilled people who have to do them. So how do managers motivate people in such jobs? One solution is to give them some responsibilities, not as individuals but as part of a team. For example, some supermarkets combine office staff, the people who fill the shelves, and the people who work on the checkout tills into a team and let them decide what product lines to stock, how to display them, and so on. Other employers ensure that people in repetitive jobs change them every couple of hours, as doing four different repetitive jobs a day is better than doing only one. Many people now talk about the importance of a company's shared values or corporate culture, with which all the staff can identify: for example, being the best hotel chain, or hamburger restaurant chain, or airline, or making the best, the safest, the most user-friendly, the most ecological or the most reliable products in a particular field. Such values are more likely to motivate workers than financial targets, which ultimately only concern a few people. Unfortunately, there is only a limited number of such goals to go round, and by definition, not all the competing companies in an industry can seriously claim to be the best.

Read the text again and complete the following sentences, using your own words as much as possible. 1. Herzberg suggested that good labour relations and working conditions ... 2. According to Herzberg, the kind of things that motivate ... 3. The problem with saying that only challenging, interesting and responsible jobs are motivating is that... 4. Ways of motivating people in unskilled jobs include ... 5. The problem with trying to motivate workers by the belief that their company is the best is that... TEXT 3


You are a journalist working for Business Week and you are to interview Frederick Herzberg who developed the Two-Factor Theory. Invent a dialogue between these individuals using the following briefing materials.

Herzberg's Two-Factor Theory

Frederick Hetzbeig's theory is known as the motivator-hygiene theory. His basic premise is that dissatisfaction and satisfaction are not opposite ends of a single continuum. Rather, the opposite of dissatisfaction is no dissatisfaction, and the opposite of satisfactions no satisfaction. The way to move an individual from dissatisfaction to no dissatisfaction is by utilizing Hygienes. These are factors that are extrinsic to the work itself. Hygienes are factors concerning the environment within which the work is performed like the color of the walls, the temperature of the room, or the paving in the company parking lot. Unfortunately, hygienes are not the factors that can move your employees toward satisfaction. These factors simply placate employees, but do nothing to truly motivate them. Before the real motivation can be addressed, employees must have sufficient hygienes so as not to be dissatisfied. To move employees from no satisfaction to satisfaction, motivators must be used. These are the factors that are intrinsic to the work itself. Examples of motivators include more autonomy, opportunities for promotion, and delegation of responsibility.

TEXT 4 Fill in the blanks using terms given below. Determining the Role of Money in Motivation Motivation Theories can provide you with the motivational .......................to pull in order to increase the motivation of your.............. . People are more inclined to deliver . that is minimally acceptable. Some even wonder today if Americans are still in search of excellence, or they are in search of mediocrity instead. In the past, the motivation technique was a scare tactic. "Do it or else..." was the refrain of the .manager. It no longer .. the desired results today, in the of employee's involvement in ......and .... Motivation is a complex issue requiring an understanding of individuals. It is no longer answered with just money. In the past, a manager might have been able to raise employee's ........................... and provide some.......................... to improve motivation. Simple material....... does not get the same mileage in today's workplace. In fact money is not the prime motivation.any longer. Adam Smith suggested in 1776 that self-interest for monetary . is the primary motivator of people. While some still ............................to this.........................., most researchers agree that ..has become more important today. Herzbeig suggested that money is a...................................... That is, money is .. to the work itself and does not really move people toward satisfaction. Instead, people are said to desire autonomy, ..........................work, and more creative. . The ............................... of money as a motivator is generally in what it can buy. Once basic needs have been met, more money is not necessarily a primary motivator for


people. There is also a symbolic meaning of money that can be the actual motivator rather than the money itself. Terms: rewards, salary, driver, value, adhere, job satisfaction, assumption, extrinsic, workforce, environment, command-and-control, delivers, decision-making, fringe benefits, remuneration, gain, hygiene, challenging, levers, performance, delegation of authority. Describe how companies take care of their employees. Use the following terms. medical insurance paid holidays retirement programs (pension plans) child care transportation allowance credit union facilities profit sharing relocation expenses wages and salaries induction process job security outplacement services employment contract life insurance sick leaves training and development programs recreational activities maternity/paternity leaves ESOP (Employee Stock Ownership Plans) bonuses fringe benefits stock options mentors grievance committee severance pay cafeteria plans*

'Cafeteria plans are flexible benefits that became popular during the 1980s. With these plans, an employee allocates a set amount of benefit dollars according to personal choice.


A Helen Tucker is Human Resources Director at Procter and Gamble. Each year,
the company conducts a survey throughout their organisation to find out how satisfied their staff are in their jobs. Write down five questions that you think will appear in the survey. B 1 Listen to the first part of the interview. Which of your questions does Helen Tucker mention? C 1 Listen to the first part again. Note down all questions in the survey. Compare your answers with other members of your group. D 2 Listen to the second part of the interview and answer these questions.

1 What three ways have job priorities changed in recent years? 2 What examples does Helen Tucker give of flexible working programmes? 3 Apart from flexible working conditions, what other factors might persuade people to join Procter and Gamble? 4 Why did Procter and Gamble introduce a car share scheme?

II. You will hear Steve Moody, the manager of the Marks & Spencer store in Cambridge, talking about how he and the company try to motivate staff.


Listen to the first part of the interview and answer the following questions. 1 Which of the following things does Steve Moody say? If the statements do not match what Moody says, what does he actually say? A People require an acceptable salary. B People need a nice working environment. C People must understand what they are supposed to do. D People must appreciate their boss and their colleagues. E People must not be expected to do the same thing lots of times. 2 What is the reason he gives why some of his staff prefer working on the till or cash register to other tasks? 3 What is the advantage of this for the store? 4 What are the other two tasks he mentions that are equally important in any store? 5 Steve Moody says that the work of management involves 'tailoring individuals' needs and abilities to the operational needs of the store'. Give another word for tailoring. 6 Why does M&S also need staff who like to perform all sorts of different tasks? Listen to the second part of the interview, about the perks M&S give their staff. 1 Make a list of five or six factors that Steve Moody says motivate M&S staff. 2 What does he say is the effect of giving staff an annual bonus shortly before Christmas?

DISCUSSION QUESTIONS 1. What do you find satisfying and frustrating about your work or studies? 2. Who or what inspires you at work? 3. How true do you think the following statements are? a) There is no such thing as company loyalty these days. b) True fulfillment can only come with a job you love. c) You should work to live not live to work. 4. Is it possible to satiate the need for self-actualization? 5. What is the best possible job for people with the dominant need for achievement, power and affiliation, respectively? 6. What motivation theories can be effective in contemporary Belarus?

According to what you have read and heard, how would you attempt to motivate people with the following positions? a bus driver in a big city, who has to work irregular hours, including early morning, evening, and night shifts a nurse who works with seriously ill children a sales representative for a pharmaceutical company, who visits hospitals and doctors a manual worker in the Printing House at Cambridge University Press a shepherd Would any of the following suggestions be appropriate? If not, what else can you suggest?


building sports facilities (a gymnasium, tennis courts, etc.) establishing a profit-sharing programme giving longer paid holidays (such as an extra day for every year worked over ten years) giving a company car offering career training offering early retirement paying a higher salary paying productivity bonuses reducing the working week (e.g. to 35 hours) setting up a nursery for workers' pre-school age children spending some money on decorating the organizations premises (with plants, pictures, etc.) subsidizing the staff canteen

Office attraction
Karl Jansen, Managing Director at London-based Crawford plc, has always believed that employees perform better in a relaxed working atmosphere. The staff rule book is slim and he'd like to keep it that way. However, recent events have made him wonder whether the company culture has become a little too casual It could be because staff are working later at night and at weekends, or because fierce competition is causing more stress. Whatever the reason, close relationships between colleagues are definitely becoming more common. Look at Karl's e-mail to Jenny Cunningham, Human ~ Resources Director. To. Jenny Cunningham From Karl Jansen subject Police on office relationships date 30 June I'm extremely concerned about the growing number of close relationships between staff. This is having a very bad effect on both performance and morale. As you know, there have been three cases recently where employees have developed personal relationships which seriously affected both their own performance and their colleagues'. Furthermore, I've heard this morning that one of the individuals concerned is threatening the company with legal action. As a result I'd like the Human Resources Department to review in detail each of the three cases and advise how to proceed. These are: 1. The appointment of Tania Jordan 2. The re-assignment of John Goodman 3. Complaints against Derek Hartman

The details
1 Appointment of Tania Jordan Specific questions A few months ago, Karl and two other directors, Marcus Ball and Julia Kovacs, Later on in his e-mail, Karl asked Jenny and appointed a new manager. There were her team to consider the following questions. three excellent candidates. Finally, Tania Jordan was selected mainly because Marcus had argued strongly in her


favour. Karl discovered later that she and Marcus had started living together. When Karl told him he should have withdrawn from the selection process, Marcus said angrily, 'Listen, I didn't know her so well at the time. In any case, it's my private life. I supported Tania because she was the best person for the job.' Karl discussed the matter with Jenny. They decided to take no further action. 2 Re-assignment of John Goodman A few weeks later, a problem arose in the Finance Department. The Financial Director and her ambitious deputy, John Goodman, had formed a very close relationship. Unfortunately, the relationship went sour and they had bitter rows in public. Because of these problems, serious mistakes were made in the annual report and the morale of the whole department was affected. Karl and the other directors decided to move John to another department. However, John's new position is less challenging with little opportunity for promotion. He believes he's been very badly treated by the management and is threatening to take his case to an industrial tribunal. 3 Complaints against Derek Hartman A week ago, a part-time employee in the General Office, Claudia Northcott, emailed Karl asking for a private meeting with him. When they met, he found out that she was representing all the parttime staff in the department. According to her, the Office Manager, Derek Hartman, is showing favouritism towards one of his staff, Petra Palmer, and this is upsetting everyone in the office. Karl asked for more details.

Did we make the right decisions concerning Marcus Ball and John Goodman? What further action, if any, should we take in each case? If the accusation against Derek Hartman is true, what action should we take? Should the company have a written policy on close relationships at work? If so, what should be the main guidelines for staff? What sanctions should there be for staff who don't follow the guidelines? How can we avoid someone gaining an unfair advantage from having a close relationship with another member of staff? Are there any specific examples of bad practice that could be written into the policy document?

Listen to an extract from their conversation.


Write a short account (about 200 words) of the factors that have been or will be important for you in your choice of a job.


Discuss the following 10 commandments of motivation through human relations and create 10 commandments of your own. 1. 2. 3. Speak to people. There is nothing as nice as a cheerful word of greeting. Smile to people. It takes seventy-two muscles to frown, only fourteen to smile. Call people by name. The sweetest music to anyone's ear is the sound of his or her own name. 4. Be friendly and helpful If you want to have friends, be a friend. 5. Be cordial. Speak and act as if everything you do is a genuine pleasure. 6. Be genuinely interested in people. You can like almost everybody if you try. 7. Be generous with praise and cautious with criticism. 8. Be considerate of the feelings of others. There are usually three sides to a controversy: your side, the other fellow's side, and the right side. 9. Be alert to giving service. What counts most in life is what we do for others. 10. Add to this a good sense of humor, a big dose of patience, and a dash of humility, and you will be rewarded many times.

Study the following words and phrases align (with) cope (with) crunch desperation extrinsic facility fringe benefits grievance committee intrinsic maternity(paternity) leaves mediocrity pamper perks placate premise remuneration repetitive revamp rewards satisfiers scare severance pay transportation allowance ultimately urge value

LEAD-IN I. Discuss these questions. 1. Which modern or historical leaders do you most admire? Which do you admire the least? Why? 2. What makes a great leader? Write down a list of characteristics. Compare your list with other groups. 3. Are there differences between men and women as leaders? Why have most great leaders been men? 4. Are people who were leaders at school more likely to be leaders later in life? 5. What makes a bad leader? Draw up a profile of factors. 6. What is the difference between a manager and a leader?



In groups, think of someone in a powerful position. List three positive qualities and three negative qualities about this person. Then compare your ideas.


Which of the adjectives below would you use to describe an ideal leader? Give reasons for your choice. What adjectives would you add? decisive charismatic cautious aggressive magnetic informal passionate adventurous energetic ruthless accessible thoughtful flexible persuasive motivating impulsive opportunistic open


Read what some commentators think about leadership. Do you agree with their ideas?


Managers Versus Leaders

Let's begin by clarifying the distinction between managers and leaders. Writers frequently use the two terms synonymously. However, they aren't necessarily the same. Managers are appointed. They have legitimate power that allows them to reward and punish. Their ability to influence is based on the formal authority inherent in their positions. In

Not all leaders are managers, nor are all managers leaders.


contrast, leaders may either be appointed or emerge from within a group. Leaders can influence others to perform beyond the actions dictated by formal authority. Should all managers be leaders? Conversely, should all leaders be managers? Because no one yet has been able to demonstrate through research or logical argument that leadership ability is a handicap to a manager, we can state that all managers should ideally be leaders. However, not all leaders necessarily have capabilities in other managerial functions, and thus not all should hold managerial positions." The fact that an individual can influence others does not mean that he or she can also plan, organize, and control. Given (if only ideally) that ail managers should be leaders, we can pursue the subject from a managerial perspective. Therefore, by leaders we mean those who are able to influence others and who possess managerial authority.

Trait Theories of Leadership

Ask the average person on the street what comes to mind when he or she thinks of leadership. You're likely to get a list of qualities such as intelligence, charisma, decisiveness, enthusiasm, strength, bravery, integrity, and self-confidence. These responses represent, in essence, trait theories of leadership. The search for traits or characteristics that differentiate leaders from nonleaders, though done in a more sophisticated manner than our on-the-street survey, dominated the early research efforts in the study of leadership. Is it possible to isolate one or more traits in individuals who are generally acknowledged to be leaders for instance. Herb Kelleher, Cheong Choong Kong, Governor Whitman of New Jersey, Nelson Mandela, or Katherine Graham that nonleaders do not possess? We may agree that these individuals meet our definition of a leader, but they have utterly different characteristics. If the concept of traits were to prove valid, all leaders would have to possess specific characteristics. Research efforts at isolating these traits resulted in a number of dead ends. Attempts failed to identify a set of traits that would always differentiate leaders from followers and effective leaders from ineffective leaders. Perhaps it was a bit optimistic to believe that a set of consistent and unique personality traits could apply across the board to all effective leaders, whether they were in charge of the Carolina Panthers Football Team, Nortel, Cedars-Sinai Hospital, Volvo, Bombardier, United Way, or Outback Steakhouse. However, attempts to identify traits consistently associated with leadership have been more successful. Six traits on which leaders are seen to differ from nonleaders include drive, the desire to lead, honesty and integrity self-confidence, intelligence, and job-relevant knowledge. Yet traits alone do not sufficiently explain leadership. leaders People who are able to influence others and who possess managerial authority

trait theories of leadership Theories that isolate characteristics that differentiate leaders from nonleaders


Explanations based solely on traits ignore situational factors. Possessing the appropriate traits only makes it more likely that an individual will be an effective leader. He or she still has to take the right actions. And what is right in one situation is not necessarily right for a different situation. So, although there has been some resurgent interest in traits during the past decade, a major movement away from trait theories began as early as the 1940s. Leadership research from the late 1940s through the mid1960s emphasized the preferred behavioral styles that leaders demonstrated.

Behavioral theories of Leadership

The inability to explain leadership solely from traits led researchers to look at the behavior of specific leaders. Researchers wondered whether there was something unique in the behavior of effective leaders. For example, do leaders tend to be more democratic than autocratic? It was hoped that the behavioral theories of leadership approach would not only provide more definitive answers about the nature of leadership but, if successful, also have practical implications quite different from those of the trait approach. If trait research had been successful, it would have provided a basis for selecting the right people to assume formal positions in organizations requiring leadership. In contrast, if behavioral studies were to turn up critical behavioral determinants of leadership, we could train people to be leaders. That's precisely the premise behind the management development programs at, for example, Sun Microsystems, the U.S. Postal System, Ernst and Young, Sonoco, and Sears'. A number of studies looked at behavioral styles. We shall briefly review three of the most popular studies: Kurt Lewin's studies at the University of Iowa, the Ohio State group, and the University of Michigan studies. Then we shall see how the concepts that those studies developed could be used to create a grid for appraising leadership styles. ARE THERE IDENTIFIABLE LEADERSHIP BEHAVIORS? One of the first studies of leadership behavior was done by Kurt Lewin and his associates at the University of Iowa, in their studies, the researchers explored three leadership behaviors or styles: autocratic, democratic, and laissez-faire. An autocratic style is that of a leader who typically tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation. A leader with a democratic style tends to involve employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback as an opportunity to coach employees. The democratic style can be further classified in two behavioral theories of leadership Theories that isolate behaviors that differentiate effective leaders from ineffective leaders

autocratic style of leadership The term used to describe a leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation

democratic style of leadership The term used to describe a leader who involves employees in decision making, delegates authority encourages participation in deciding work methods and goals, and uses feedback to coach employees


ways: consultative and participative. A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision him- or herself. In this capacity, the democratic-consultative leader is using the input as an information-seeking exercise. A democratic-participative leader often allows employees to have a say in what's decided. Here, decisions are made by the group, with the leader providing one input to that group. Finally, the laissez-faire leader generally gives his or her employees complete freedom to make decisions and to complete their work in whatever way they see fit. A laissez-faire leader might simply provide necessary materials and answer questions. Lewin and his associates wondered which one of the three leadership styles was most effective. On the basis of their studies of leaders from boys' clubs, they concluded that the laissez-faire style was ineffective on every performance criterion when compared with both democratic and autocratic styles. Quantity of work done was equal in groups with democratic and autocratic leaders, but work quality and group satisfaction were higher in democratic groups. The results suggest that a democratic leadership style could contribute to both good quantity and high quality of work. Later studies of autocratic and democratic styles of leadership showed mixed results. For example, democratic leadership styles sometimes produced higher performance levels than autocratic styles, but at other times they produced group performance that was lower than or equal to that of autocratic styles. Nonetheless, more consistent results were generated when a measure of employee satisfaction was used. Group members' satisfaction levels were generally higher under a democratic leader than under an autocratic one." Did this mean that managers should always exhibit a democratic style of leadership? Two researchers, Robert Tannenbaum and Warren Schmidt, attempted to provide that answer. Tannenbaum and Schmidt developed a continuum of leader behaviors. The continuum illustrates that a range of leadership behaviors, all the way from boss centered (autocratic) on the left side of the model to employee centered (laissez-faire) on the right side of the model, is possible. In deciding which leader behavior from the continuum to use, Tannenbaum and Schmidt proposed that managers look at forces within themselves (such as comfort level with the chosen leadership style), forces within the employees (such as readiness to assume responsibility), and forces within the situation (such as time pressures). They suggested that managers should move toward more employeecentered styles in the long run because such behavior would increase employees' motivation, decision quality, teamwork, morale, and development.

laissez-faire style of leadership The term used to describe a leader who gives employees complete freedom to make decisions and to decide on work methods


Six Traits That Differentiate Leaders from Nonleaders 1. Drive Leaders exhibit a high effort level. They have a relatively high desire for achievement, they're ambitious, they have a lot of energy, they're tirelessly persistent in their activities, and they show initiative. 2. Desire to lead Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility. 3. Honesty and integrity Leaders build trusting relationships between themselves and followers by being truthful or nondeceitful and by showing high consistency between word and deed. 4. Self-confidence Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of goals and decisions. 5. Intelligence Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information and to be able to create visions, solve problems, and make correct decisions. 6. Job-relevant knowledge Effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions. TEXT 2

Emerging Approaches to Leadership

We'll conclude our review of leadership theories by presenting three emerging approaches to the subject: charismatic leadership, visionary leadership, and transactional versus transformational leadership. If there is one theme that underlies these approaches, it is that they take a more practical view of leadership than previous theories have (with the exception of trait theories, of course). That is, these approaches look at leadership the way the average person on the street does. WHAT IS CHARISMATIC LEADERSHIP THEORY? We discussed attribution theory in relation to perception. Charismatic leadership theory is an extension of that theory. It says that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. Studies on charismatic leadership have, for the most part, attempted to identify those behaviors that differentiate charismatic leaders the Jack Welches, Elizabeth Doles, and Colin Powells of the world from their noncharismatic counterparts. Several authors have attempted to identify personal characteristics of the charismatic leader. Robert House (of path-goal fame) has identified three: extremely high confidence, dominance, and strong convictions. Warren Bennis, after studying 90 of the most effective and successful leaders in the United States, found that they had four common competencies: They had a compelling vision or sense of purpose; they could communicate that vision in clear terms that their followers could readily identify with; they demonstrated consistency and focus in the pursuit of their vision; and they knew their own strengths and capitalized on them. The most comprehensive analysis, however, has been completed by Jay Conger and Rabindra Kanungo at McGill University. They concluded that charismatic leaders have an idealized goal that they want to achieve and a strong personal commitment to that goal, are perceived as unconventional, are assertive


and self-confident, and are perceived as agents of radical change rather than as managers of the status quo. What can we say about the charismatic leader's effect on his or her followers? There is an increasing body of research that shows impressive correlations between charismatic leadership and high performance and satisfaction among followers. Compared with people working for noncharismatic leaders, people working for charismatic leaders are motivated to exert extra work effort and, because they like their leader, express greater satisfaction. But charismatic leadership may not -always be needed to achieve high levels of employee performance. It may be most appropriate when the follower's task has an ideological component. This aspect may explain why charismatic leaders most often surface in politics, religion, or a business firm that is introducing a radically new product or facing a life-threatening crisis. Such conditions tend to involve ideological issues. Second, charismatic leaders may be ideal for pulling an organization through a crisis but become a liability to an organization once the crisis and the need for dramatic change subside. Why? Because the charismatic leader's overwhelming selfconfidence often becomes a problem. He or she is unable to listen to others, becomes uncomfortable when challenged by assertive employees, and begins to hold an unjustifiable belief in his or her "rightness" on issues.



The term vision appeared in our previous discussion of charismatic leadership, but visionary leadership goes beyond charisma. In this section, we review recent revelations about the importance of visionary leadership. Visionary leadership is the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves upon the present. ; This vision, if properly selected and implemented, is so energizing that it "in effect jump-starts the future by calling forth the skills, talents, and resources to make it happen." A review of various definitions finds that a vision differs from other forms of direction setting in several ways: "A vision has clear and compelling imagery that offers an innovative way to improve, which recognizes and draws on traditions, and connects to actions that people can take to realize change. Vision taps people's emotions and energy. Properly articulated, a vision creates the enthusiasm that people have for sporting events and other leisure-time activities, bringing this energy and commitment to the workplace." The key properties of a vision seem to be inspirational possibilities that are value centered, realizable, and have superior imagery and articulation. Visions should be able to create possibilities that are inspirational, unique, and offer a new order that can produce organizational distinction. A vision is likely to fail if it doesn't offer a view of the future that is clearly and demonstrably better for the organization and its members. Desirable visions fit the times and circumstances and reflect the uniqueness of the organization. People in the organization must also believe that the vision is attainable. It should be perceived as challenging yet doable. Visions that have clear articulation and powerful imagery are more easily grasped and accepted. What are some examples of visions? Rupert Murdoch had a vision of the future of the communication industry that combined entertainment and media. Through his News Corporation, Murdoch has successfully integrated a broadcast network, TV stations, movie studio, publishing, and global satellite distribution. Mary Kay Ash's vision of women as entrepreneurs selling products that improved their self-image gave impetus to


her cosmetics company. Michael Dell has created a vision of a business that allows Dell Computer to sell and deliver a finished PC directly to a customer in fewer than eight days. What skills do visionary leaders exhibit? Once the vision is identified, these leaders appear to have three qualities that are related to effectiveness in their visionary roles. First is the ability to explain the vision to others. The leader needs to make the vision clear in terms of required actions and aims through clear oral and written communication. Former President Ronald Reagan the so-called "great communicator" used his years of acting experience to help him articulate a simple vision for his presidency: a return to happier and more prosperous times through less government, lower taxes, and a strong military. Second is the ability to express the vision not just verbally but through the leader's behavior. This requires behaving in ways that continually convey and reinforce the vision. Herb Kelleher at Southwest Airlines lives and breathes his commitment to customer service. He's famous within the company for jumping in, when needed, to help check in passengers, load baggage, fill in for flight attendants or do anything else to make the customer's experience more pleasant. The third skill is the ability to extend the vision to different leadership contexts. This is the ability to sequence activities so the vision can be applied in a variety of situations. For instance, the vision has to be as meaningful to the people in accounting as to those in marketing and to employees in Prague as well as in Pittsburgh.

TEXT 4 1 In this extract from his hook Mind your Manners, John Mole compares western and Japanese approaches to business in terms of Leadership and Attitudes/Behaviour. Before you read, try to predict some of his comments. 2 Read the first part of the text about Leadership and decide which of the following statements accurately reflect John Mole's comments. 1 The Japanese approach to leadership is more individualistic than the western approach. 2 Japanese bosses tend to be more decisive, charismatic and overtly ambitious than their western counterparts. 3 European employees expect defined job responsibilities and clear-cut goals. 4 Japanese employees expect regular feedback on their performance. 5 Japanese employees expect to use their initiative more than their European counterparts. 6 Success in Japanese business depends on careful observation of the boundaries of status and hierarchy. 3 Read the rest of the text and complete the following chart. You will need to infer some of the information.


DIFFERENCES IN ATTITUDES FND BEHAVIUOR Western speak your mind time is money regular hours with time off humour is vital and varied rarely meet outside work meeting outside work purely social more to life than work 10 1. 2. Japanese Use last name followed by san Subtle status symbols 3. 4. 5. 6. 7. 8. 9. karoshi

Westerners tend to value a tough, individualistic and dominating leadership style including the ability to take independent decisions and have them successfully implemented. The higher a Japanese manager rises in a company the more pains he will take to hide his ambition and capability and not to be seen as a forceful leader. Westerners who look for a decisive and charismatic boss are likely to be disappointed. A Japanese manager concentrates on getting his group to work together. He is expected to be accessible, to work as an integral part of the group and to share whatever information he has. Because he has spent his whole career with the company, more often than not in the same type of function, he is expected to be fully knowledgeable about his subordinates' work as well as his own. One of the problems Japanese managers often have with western subordinates is getting them to show initiative. They complain that Europeans need to be told what to do all the time. And when they have done it they need immediate assurance that they have done it right and a pat on the back. This would be embarrassing to the boss and personally offensive to a Japanese subordinate who expects no more than a vague indication of the job to be done. Japanese do not have personal job descriptions or performance appraisal systems. Japanese job definition is for the group and it is assumed that everyone will do their best to fulfil it Their western subordinates on the other hand complain that they are given only vague hints of what they are supposed to do. Without defined responsibility, clear direction, and realistic goals they may find their jobs boring and without scope. When individual descriptions are instituted in Japanese companies in Europe it is usually at the European's insistence. Europeans who discover the ground rules find that they have more scope to make their own jobs than in a circumscribed western environment The ground rules are never do anything that is above your status, never do anything that infringes on someone else's status and never cut across hierarchical boundaries. The way to ensure you keep within the boundaries of your status is to keep your boss informed of the smallest detail. Among the sample of people I talked to it was those at the lower level of organisation who found this the most stimulating change from a European working environment where junior people are given comparatively little scope or responsibility.


Attitudes and behaviour

Etiquette Japanese in Europe have reluctantly learned to use first names but feel more comfortable when addressed by the last name followed by san. Senior people may be addressed by their title plus san instead of last name. First names are reserved for family and close friends. Titles, modes of address and language are carefully measured to indicate relative status, as are the other subtle status symbols of office life such as job titles or the positioning of desks in an open office. For example, seniors would have their backs to the windows where they could enjoy the privilege of natural light, in contrast with the fluorescent lighting pervading Japanese offices. While very sensitive to fine distinctions of rank, the western use of material goods to communicate achievement and authority are noticeably lacking. Offices are workmanlike, cars are unostentatious and soon. More important than the actual forms of language and behaviour is pervasive politeness and a concern to avoid embarrassment to oneself or others. Displays of temper or any other uncontrolled emotions are seen as a sign of weakness. Japanese manners are based on reciprocation, a sense of mutual indebtedness. To many westerners the excessive deference of a subordinate to a superior is less surprising than that it is returned in kind. Relationships between all levels are built on exchange, whether gifts, courtesies, help, information and soon. Extreme politeness does not exclude openness in relationships. Europeans, especially women, may be surprised at the personal nature of conversations. This is usually because Japanese need to know people well before they can be comfortable with them. In some European countries you need not trust people to work with them as long as they do their job. In a Japanese environment there is a higher tolerance of professional and human frailty, but it is compensated with a greater demand for loyalty and trust Punctuality Japanese are very punctual when politeness requires it and especially with senior people. Otherwise time is fluid. A meeting will carry on until it is finished or interrupted by the demands of a senior person outside. The working day can be very long, reflecting a demanding work ethic and a high level of commitment. Being the first to leave, even if you have no work to do, is a snub to the group and an embarrassment to your senior. As in Japan, Japanese may regularly work on Saturdays, rarely take more than a week's vacation or their full entitlement, and count sick days as holiday. Humour On informal occasions when they know everyone well, Japanese will be humorous and entertaining. At a formal meeting or among strangers they may be awkward and withdrawn and too nervous to loosen up. In presentations and speeches to westerners many have learned that the audience expects jokes and informality and respond accordingly. Japanese do not usually appreciate flippancy or triviality and find selfdeprecation a mystery. Social life The most common complaint among westerners is that most major decisions seem to be made outside office hours by their Japanese colleagues. While in day-to-day activities they are kept well informed, they are kept in the dark about the overall direction of the company. For a westerner to progress in a Japanese managed company it is essential to


work late in the evening and at weekends. This can be a major impediment for women who wish to progress in a Japanese company. In the workplace itself most of the women I talked to did not find Japanese more chauvinistic than their western counterparts. The difficulty was in establishing the appropriate relationships, as well as finding the time, to join in the after-hours discussions. It is not so easy for men either. While the expatriate Japanese is considerably more flexible and adaptable to European ways than the stereotypical image of the chauvinistic and single minded Tokyo salaryman, it is hard to break into the inner circle. As in any foreign company a first requirement is to make an effort to speak the employer's language. As well as practically useful it demonstrates a commitment to career and company to which Japanese are particularly sensitive. It is this level of dedication to the organisation which is probably the biggest hurdle to making any more than an averagely successful career in a Japanese company. The emotional and practical commitment that Japanese expect is incomprehensible to most westerners. The term 'British disease' is a byword among Japanese for idleness and is extended to most other western countries. The Japanese disease is Karoshi, or death by overwork. The difference between the British and Japanese diseases is perhaps the biggest cultural hurdle for each side to overcome.
Nicholas Brealey Publishing

LISTENING I. Listen to the interview. Put the characteristics which the speaker suggests are common to successful leaders in the order in which he mentions them. a) Successful leaders achieve their goals. b) They are prepared to do anything to achieve their objectives. c) They know exactly what their objectives are. d) Their objectives are always for the good of ordinary people. e) They maintain absolute concentration on their aim.

II. Leadership qualities 1. Max Landsberg is a partner at Heidrick and Struggles, the international executive search consultants. Listen to the first part of an interview. What three qualities do leaders of large companies usually have? 2. Listen to the second part of the interview. Max talks about the ways that leaders can develop their skills. 1. Match the following percentages - 70%, 20%, 10% - with the development activity. a) training b) coaching c) on the job 2.What, according to Max, is the main way that companies develop leaders? 3. Listen to the third part of the interview. Max talks about three leaders that have influenced or impressed him. Make notes on what he says about each one. Nelson Mandela Winston Churchill Bernie Ellis


DISCUSSION QUESTIONS 1. Discuss the strengths and weaknesses of the trait theory of leadership. 2. "Charismatic leadership is always appropriate in organizations". Do you agree or disagree? Support your position. 3. When might leaders be irrelevant? 4. Develop your own definition of leadership. 5. Is there a difference between effective management and effective leadership? Why or why not? 6. Assess yourself as a leader based on what you have read. What are your strengths and weaknesses? 7. Identify the developmental experiences you have had that may have strengthened your ability to lead. What did those experiences teach you? Also identify some developmental experiences you need to acquire, and how you will seek them. Be specific.

Developing Your Diagnostic and Analytical Skills HIROSKI OKUDA AT TOYOTA Hiroski Okuda isn't afraid to speak his mind nor impose radical change in an organization. And because of these traits, he sticks out in Toyota, where he is the chairman of the board. Prior to becoming chairman, Okuda served as Toyota's president the first nonfamily member in over 30 years to head the company. He also sticks out in his executive circles, because in Japan executives are supposed to be unseen. Okuda justifies his outspoken and aggressive style as necessary to change a company that has become lethargic and overly bureaucratic. Okuda moved ahead at Toyota by taking jobs that other employees didn't want. For example, in the early 1980s, the company was trying to build a plant in Taiwan, but the Taiwanese government's demands for high local content, technology transfer, and guaranteed exports convinced many at Toyota that the project should be scrapped. Okuda thought differently. He successfully lobbied for the plant in the company, and it's now very profitable for the organization. As Okuda has noted, "Everyone wanted to give up. But I restarted the project and led it to success." His drive and ability to overcome obstacles were central to his rise in the company's hierarchy. When Okuda ascended to the presidency of Toyota in early 1995, the company was losing market share in Japan to both Mitsubishi and Honda. Okuda attributed this problem to several factors. Toyota had been losing touch with customers in Japan for several years. For example, when engineers redesigned the Corolla in 1991, they made it too big and too expensive for the Japanese tastes. Then, four years later, they stripped out so many of the costs in the car that the Corolla looked too cheap. Competitors, on the other hand, had also done a much better job at identifying the boom in recreational vehicles especially the sports utility market. Toyota's burdensome bureaucracy also bothered Okuda. A decision that took only five minutes to filter through the company at Suzuki Motor Corporation took upwards of three weeks at Toyota. In his first 18 months on the job, Okuda implemented some drastic changes. In a country in which lifetime employment is consistent with the culture, he replaced nearly


one third of Toyota's highest-ranking executives. He revamped Toyota's long-standing promotion system based on seniority, adding performance as a factor. Some outstanding performers were also moved up several levels in management at one time-something unheard of in the history of the company. Okuda also worked with vehicle designers to increase the speed at which a vehicle went from concept to market. What once took 27 months was shortened to 18. Finally, he is using the visibility of his job to address larger societal issues facing all Japanese businesses. He recently accused Japan's Finance Ministry of trying to destroy the auto industry by driving up the yen. And he has been an audible voice in the country, condemning the lax lending practices that force Japanese banks to write off billions of dollars in bad loans and that led, in part, to the economic crisis in the country. Unfortunately, some of Okuda's actions may have backfired. Speculation that he overstepped his boundary at times by his "blunt demands for change and his refusal to bail out other members of the Toyota keiretsu," may have offended the founding Toyoda family leading to his removal as president of the company in June 1999. However, his strategic leadership and the good he's done for the company didn't go unnoticed they helped him ascend to the chairman's job. QUESTIONS 1. How would you describe Hiroski Okuda's leadership style? Cite specifics where appropriate. 2. When a company is in a crisis, do you believe that a radical change in leadership is required to turn the company around? Support your position. 3. Would you describe Okuda's leadership style to be (a) charismatic, (b) visionary, and (c) culturally consistent with the practices in Japan? Explain.


The Pre-Post Leadership Assessment OBJECTIVE To compare characteristics intuitively related to leadership with leadership characteristics found in leadership theory. PROCEDURE Identify three people (e.g., friends, relatives, previous boss, public figures, etc.) whom you consider to be outstanding leaders. List why you feel each individual is a good leader. Compare your lists of the three individuals. Which traits, if any, are common to all three? Your instructor will lead the class in a discussion of leadership characteristics based on your lists. Students will call out what they identified, and your instructor will write the traits on the chalkboard. When all students have shared their lists, class discussion will focus on the following: 1. What characteristics consistently appeared on students' lists? 2. Were these characteristics more trait oriented or behavior oriented? 3. Under what situations were these characteristics useful? 4. What, if anything, does this exercise suggest about leadership attributes?


Developing Your Trust-Building Skills Building Trust ABOUT THE SKILL Given the importance trust plays in the leadership equation, today's leaders should actively seek to build trust with their followers. Here are some suggestions for achieving that goal. STEPS IN THE TRUST-BUILDING SKILL Practice openness Mistrust comes as much from what people don't know as from what they do know. Openness leads to confidence and trust. So keep people informed; make clear the criteria on how decisions are made; explain the rationale for your decisions; be candid about problems; and fully disclose relevant information. Be fair Before making decisions or taking actions, consider how others will perceive them in terms of objectivity and fairness. Give credit where credit is due; be objective and impartial in performance appraisals; and pay attention to equity perceptions in reward distributions. Speak your feelings Leaders who convey only hard facts come across as cold and distant. When you share your feelings, others will see you as real and human. They will know who you are and their respect for you will increase. Tell the truth If honesty is critical to credibility, you must be perceived as someone who tells the truth-Followers are more tolerant of being told something they "don't want to hear" than of finding out that their leader lied to them. Be consistent People want predictability. Mistrust comes from not knowing what to expect. Take the time to think about your values and beliefs. Then let them .consistently guide your decisions. When you know your central purpose, your actions will follow accordingly, and you will project a consistency that earns trust. Fulfill your promises Trust requires that people: believe that you are dependable. So you need to keep your word. Promises made must be promises kept. Maintain confidences You trust those whom you believe to be discrete and whom you can rely on. If people make themselves vulnerable by telling you something in confidence, they need to feel assured that you won't discuss it with others or betray that confidence. If people perceive you as someone who leaks personal confidences or someone who can't be depended on, you won't be perceived as trustworthy. Demonstrate confidence Develop the admiration and respect of others by demonstrating technical and professional ability. Pay particular attention to developing and displaying your communication, negotiating, and other interpersonal skills. TRUST BUILDING You are a new manager. Your predecessor, who was very popular and who is still with your firm, concealed from your team how far behind they are on their goals this quarter. As a result, your team members are looking forward to a promised day off that they are not entitled to and will not be getting. It's your job to tell them the bad news. How will you do it? 1. Think about a person in your life (a parent, a supervisor; a teacher, etc) who has influenced you to the extent that you enthusiastically gave 110 percent. Describe the


characteristics of this individual. Pick one of the contemporary leadership theories in this chapter and relate your list to the model, explaining how your leader demonstrated the attributes, of your selected theory. 2. Develop a two- to three-page discussion when responding to the following questions. What kind of activities could a full-time college student pursue that might lead to the perception that he or she is a charismatic leader? In pursuing those activities, what might the student do to enhance this perception of being charismatic? 3. Visit the Southwest Airlines Web site <http://www.southwest.com>. Surf through the various Web pages of this airline. Using two of the skills of a visionary leader, locate examples of how Herb Kelleher has demonstrated these attributes. Specifically, show (1) how Kelleher's vision is clearly explained in terms of what's expected from Southwest employees and (2) how Kelleher's behavior reinforces to organizational members the importance of his vision.

Study the following words and phrases adventurous embarrassing autocratic style entitlement behavioral theories exhibit charismatic leadership flippancy circumscribed glib tongue commitment goal consistency hint convey hurdle courtesy impediment decisive implications in the long run infringe laissez-fair style offensive overwhelming persuasive pervade pervasive reciprocation reinforce reluctantly resurgent ruthless self-deprecation sequence tough trait theories unostentatious vague visionary leadership

LEAD-IN 1. Discuss these questions 1. Do you have a strong sense of authority? 2. Are you ready to delegate your authority to others? 3. What jobs are you ready to delegate? 4. Why are some people reluctant to delegate their authority/ 5. What is delegating? READING Text 1. YOU CAN'T DO IT ALONE 2. Before you read answer these questions. 1. Should managers have hands-on control of every aspect of their business? 2. How can you delegate effectively? 3. Does delegating help managers to build more productive working relationships within their team? 4. What are the possible excuses for not delegating? 133

5. How can delegating make your job easier and enjoyable? Many managers suffer from the delusion that they should have hands-on control of every aspect of their business. But the fact is that most businesses today are too complex, wideranging and fast-moving for one manager to be actively involved in every day-to-day decision. As a result, managers with unrealistic expectations about what they can handle are likely to wind up feeling anxious and insecure. In an effort to master the situation they may attempt to lighten control still further, introducing more systems and procedures, losing perspective of their management role and becoming increasingly bogged down in detail. This text looks at how you can avoid this by delegating effectively and building more productive working relationships within your team.

The art of delegation

The first challenge is to acknowledge that you can't do everything yourself. Resources are available to help you meet your objectives, and the most important of these is the people you work with. Once you've accepted that members of your team want to improve and can perform in extraordinary ways, your next step is to provide them with opportunities to grow and develop experience - i.e. to delegate to them. Literally, delegation means using someone as a representative. Doing it effectively will bring a number of benefits: Top performers who seek out and enjoy challenges will be attracted to your team, and poor performers who don't want to be challenged will be deterred. Work won't come to a halt when you're out of the office. You'll have more time for forward-looking, strategic tasks such as developing teamwork, improving service, raising the quality of products and updating systems. Team members who have some responsibility, so they feel they will be praised for good results as well as constructively criticized for mistakes, are more likely to want to take on tasks. Personal and professional satisfaction is increased for all concerned You'll be using your budget more efficiently: it costs less if a member of your team performs a task, as their time is less expensive than yours. All in all, everybody wins from effective delegation: team members have more opportunity to cultivate their careers and contribute to the firm; you free up your time for more productive work; and the business benefits from increased efficiency and staff satisfaction, and from a more dynamic environment. Your team is more likely to fail through your doubting their abilities than through their inexperience - so what reasons do you find to resist delegation?

Excuses for resisting the challenge

Here are some possible excuses for not delegating, all of which you must reject: In the time it takes to explain, I can do it myself - in the short-term this may be true, but in the long term delegation will save you time. My team isn't yet capable - they never will be unless you start incorporating delegation into their development plans.


No one is up to it except me - even if this is true, are you being too much of a perfectionist? Does the task need such a degree of excellence? If not, maybe someone else could do the job adequately in less time. I enjoy these tasks - losing them would make my job less interesting - in the longer term, the improvement in staff morale and performance brought about by delegating will make your job easier and just as enjoyable. Traps to avoid Simply delegating is not enough - the way you do it has a huge impact. Make sure you don't fall into any of the categories below: THE DUMPER Off-loading only work you don't want to do is the least effective way of developing and motivating people. Your team will feel frustrated, resentful, overloaded and unable to plan their own work effectively. They will lack any sense of worth, achievement or personal development. You must delegate interesting and challenging projects as well. THE CONTROLLER Lack of trust and an unwillingness to let go whatever the situation will waste much time and potential. Your people's growth will be restricted by your own narrow definition of their personal development. THE ABDICATOR Simply abdicating responsibility and leaving people to sink or swim will make people feel insecure, unsupported and isolated. Even if they don't go under, they'll have to learn the hard way, and will probably make many mistakes along the way. 3. After reading the text what new information did you get? Text 2. FOUR LEVELS OF DELAGATION

4. Do you agree that 1. Different situations require different delegation? 2. Some people are not ready to take on responsibility? 3. Delegating implies freedom on the one hand and strict control on the other hand. Four levels of delegation Different situations require different balances of control and delegation. The following should help you decide which is appropriate. I'LL DECIDE This level involves delegating tasks but not responsibility. You hope the other person will follow your directions willingly, but if they feel unhappy about them, they will still be required to carry them out. This approach is best with new members of a team who are enthusiastic and eager to learn, but who have limited knowledge and experience. They expect to be told what to do, and both need and accept close supervision. It's appropriate when you want to involve someone, but the job is too sensitive or important for you to relax your control. An example might be seeking a newcomer's help with a presentation of departmental results to the directors. With this approach, it's vital to give clear messages and leave team members in no doubt as to whether they are responding to an order, a request or a suggestion. The danger 135

in doing this is that it might impede someone's development by diminishing their role and increasing their dependence on you. WE'LL DISCUSS; I'LL DECIDE At this level of delegation, control is diminishing, and coaching is the principal theme of supervision. When in this mode, you may be able to accept every suggestion given by a colleague. When this is not possible, you should explain why an alternative would be more successful and then help him or her to learn the skills necessary to implement it. Team members must be made aware that all final decisions will be made by you. This style is best when you want and value someone's input, but must retain ultimate responsibility, for example when recruiting new team members. When using this approach, beware of deceiving your people by pretending to have a discussion when you've already decided exactly what will be done. If you do this you will forfeit their trust. WE'LL DISCUSS; WE'LL DECIDE At this level, you and your colleague are aiming to agree solutions to problems or ways of handling projects. This is appropriate when your colleague's understanding and skills in the area under consideration are roughly equal to your own, and you are both happy to share your knowledge and enthusiasm, for example when writing a marketing brief for a supplier. When using this approach, beware of pretending to offer freedom when you're actually intending to maintain strict controls. WE'LL DISCUSS; YOU DECIDE At this level, your colleague takes responsibility for the final decision after receiving input from you - for example deciding which of a number of candidates to recruit. This approach is best when you have insights or information to offer, but your colleague needs to assume responsibility because he or she will be affected by the consequences . YOU DECIDE; IF YOU NEED HELP, ASK At this level you largely hand over control, whilst retaining ultimate authority and responsibility. Your role becomes that of a consultant, who makes suggestions, provides information, obtains resources and gives support if and when required. However, you will still need to define parameters carefully, leaving no possibility of misunderstanding. This approach is best when colleagues can accept the challenges and disciplines of full delegation and work autonomously. They must both want and be equipped to achieve the highest possible performance standards. This sort of delegation is also particularly appropriate when the issues are personally important to your colleague. There are two main dangers here. Firstly, though you're losing control, you're still responsible, so you must be confident in your colleague's ability to deliver. In addition you need to beware of overloading colleagues who aren't ready to take on the responsibility. Remember, none of these approaches is inherently better than another. Each works well provided they are appropriate for the situation and parameters are well understood by you and members of your team. 5. Answer these questions. 1. What levels of delegation are discussed in the text?


2. 3. 4. 5.

What does each level involve? In what situations are these approaches used? What should managers beware of when using this or that approach? Is it important for managers and their people to understand a particular situation and use an appropriate approach? HOW TO DELEGATE

Text 3.

6. Do you know how to delegate? Read the text and make a list of steps you should take to master delegating. How to delegate The first step is to make a shopping list of the things you do, and ask yourself the following questions: How much time do things take and how many tasks really have to be done by you? Which tasks don't you delegate because you like them? Should you be delegating any of these? Which tasks do you delegate because you hate them? Are there any you should be doing yourself? Once you've decided what to delegate, the next steps are to: Select someone for the task. The person you choose will not necessarily be the one with the best skills or the most time available. You may want to encourage someone to develop their skills in areas in which they are weak. Also, what someone lacks in experience and skill, they may more than make up for in potential and motivation. Set a clear objective for the task. This should build confidence, develop and stretch (but beware of overloading or off-loading). Discuss the assignment and how the task fits into the big picture - why it's important for the organization. Explain why you've chosen the person for the task - that you value them and aren't just pushing unwanted work their way. Check for understanding and ask for comments. Make a delegation 'contract' establishing division of responsibility, resources available, how often you will follow up and how performance will be measured. Establish controls - budget, deadlines and when and how a formal review will take place. Make yourself available, particularly at critical times. Publicize the fact that the task has been delegated - the recognition of colleagues is a motivating factor. Evaluate the finished project. Concentrate on what went right (give praise for a job done well), and what went wrong (identify lessons learned not only for the person but for yourself too!). 7. After reading the text summarize the information of the text to be ready to speak on the topic "How to delegate".'


Text 4.


8. Do you agree that 1. Assigning tasks to others is a key managerial skill? 2. It is important to accept that the work will not be done exactly as you would have done? 3. The boss should be on top of things? 4. The feedback and criticism must be positive and constructive? 5. How well you learn to delegate will help you advance in your career? THE ART OF DELEGATING Assigning tasks to others is a key managerial skill By Carl Seuncer A colleague of mine spent a tough first year adjusting to being promoted to "acting manager." Recently, though. she told me how much she enjoyed managing her team of seven professionals. What had changed? She had learned how to delegate, and now believes that acquiring this one managerial skill was crucial for her career. Another engineer I know, Ray, has 20 years' experience and a team that he supervises, but he wasn't keeping track of what his people were doing and wasn't deploying them effectively. As a result, Ray was being held back from a promotion. His problem? He hadn't learned how to delegate work to his people. Can delegating really make such a difference? Yes, it can. There comes a time in every engineer's career when he or she needs to start letting go and assigning tasks to subordinates or to contractors. Often, this is work that the engineer could still do, given the time, but now he or she should focus on the higher-value managerial skills needed to accomplish the work through the efforts of others. In short, being able to assign work is an important way to leverage your own effectiveness. Delegating isn't easy, especially for engineers. I believe most young engineers tend to enjoy working alone as they go through school, perhaps having selected the profession because it allows them to work alone without having to deal with others. But once you appreciate the importance of delegating and learn the principles of how to do it, it does get easier. Delegating involves four basic steps: clearly describing the end product and when it is needed getting comfortable with the idea of other people doing the work, keeping track of things, and giving constructive feedback. Let's take a look at each step. Clearly describe what needs to be done and by when. Most of us, even when we become managers, are hesitant to ask someone else to do work that we could do. One day we're doing certain tasks, and the next we're supposed to ask others to do those same tasks. So perhaps we feel a bit guilty; after all, what are we doing? The fact is, people who report to you expect to be guided and are not going to blame you for "shirking" work. The key is to determine what you want others to accomplish and when you need them to complete the task. Be clear as to what is expected, and give your subordinate the opportunity to discuss the general approach or any other issue before launching into the work. Write down what you've agreed to (in a short e-mail, for instance), as this will help get the person started in the right direction and minimize any disagreement later. One manager I know reviews progress a day or two after assigning the work if she's unsure that the person will tackle the task effectively, to make sure that the person doesn't stray too far from the assignment. Accept that the work will not be done exactly as you would have done it. No


one completes the same task in the same way. This does not necessarily make another person's work wrong or inferior; in fact, it may be better than what you could have done and be a credit to your managerial skills. Beware of micromanaging or seeming to look over another's shoulder constantly. But by the same token, don't allow a subordinate to repeatedly ask questions for reassurance; instead, have him or her ting brief you on progress at reasonable milestones, depending on the scope of the task. Keep track of delegated work. A critical role for managers is to know what their people are doing at any given time and when the work is due. That means developing a system for monitoring delegated tasks, which can be separate from elaborate project management charts covering major tasks. Ray, the engineer I mentioned earlier, needed to develop a simple spreadsheet to keep track of the tasks that his team was doing; he designed one linked to overall project schedules. Then he had to follow up to make sure the work was getting done. Having such a system doesn't just help the manager; it also gives the workers confidence that their boss is on top of things. Give constructive feedback and criticism. When giving feedback for delegated work, try first to be as positive as possible about the work the person has done. For example, cite good, substantive points or the timeliness of the work's completion. Any criticism should relate directly to the initial scope and deadline for the work; if those were clearly outlined, you'll have a basis to discuss the submitted work and any further work needed. Let's close by looking at delegating from the opposite perspective: when others delegate work to you. Do you understand what is being asked of you? Are you aware of the deadlines? Are you comfortable with asking your boss questions that will clarify anything that's vague? If not, then try some of the delegating tips you've just learned here, Delegating is a two-way street, so the two parties need to agree in order to produce what is needed in a timely manner. The essence of delegating lies in recognizing that at some point in your career, you can no longer do it all and that to manage people and projects, you'll need to focus on using your higher-level skills. Others in your organization will look to you for guidance and direction in accomplishing the work. How well you learn to delegate will indicate your readiness to take on more responsibility and advance in your career. 9. Discuss these questions. 1. What are the four key principles of delegating? 2. Why is it essential to describe clearly what needs to be done and by when? 3. Do you agree that it is a credit to your managerial talent if your people have performed better than you could have done? 4. Is it important to keep track of delegated work? Why? 5. How can delegating increase your personal effectiveness? LISTENING 10. Listen to the interview and answer these questions? 1. When might you need someone to coordinate a team's activities? 2. What does coordination involve? 3. Why might you need someone to drive the situation? DISCUSSION QUESTIONS 1. How can delegating benefit everyone in a team? 2. How can delegating make your work more fulfilling and enjoyable? 3. Does delegating help people to learn and develop?


4. Does delegating help managers to build strong business relationships? 5. Is their success your success?

The new boss NIGEL FRASER A 'whiz kid'. Previously worked for a business equipment chain. Ambitious and creative with a direct, 'no-nonsense' approach. Task-oriented, he sees his main objective as meeting sales targets. Very disappointed with current sales performance. Believes the team needs to be controlled more tightly and is underperforming because of bad habits acquired under Vanessa Bryant. Background Business Equipment and Systems (BES), based in Birmingham, England, sells fax machines, data projectors and slim plasma screens. Eighteen months ago, its national Sales Manager, Vanessa Bryant, moved to a senior management position. Her replacement, Nigel Fraser, has been told to increase turnover by at least 10% and to create a high-performing sales team. However, since Nigel's appointment the team has not been working effectively and morale is low. Last year's sales were over 20% below target. The sales team has a mix of nationalities because BES intends to enter other European markets in the near future. Problems
1. Nigel has asked for more detailed sales reports from his team and wants to check their diaries every two weeks. The more experienced staff resent this. 2. To set clear objectives and improve communication, he holds more meetings. However, some staff are often late or don't attend, and two or three people dominate the discussions. 3. When targets are not met or customers complain, staff blame each other or other departments. They never take responsibility for mistakes. 4. Because of rivalry between individual members, they do not help each other. Some actively dislike each other. 5. The team become defensive if outsiders make helpful suggestions. They lack creativity and can't accept criticism. 6. Nigel often praises his previous company and colleagues, while the team talk about 'the good old days' when Vanessa was Sales Manager.

Writing Either: Write a letter to the Managing Director of BES outlining your solution to the problems. Or: You are a sales manager. The behaviour of one of your salespeople is upsetting the others in the team. Write a letter warning them about their conduct and indicating where improvements should be made.


The sales team



1. Recently you've had to get more involved in hands-on development work. You know you can't do everything, so you will have to rely on other people. Decide what project you are ready to delegate and why .Decide what jobs you will have to do yourself and why

abdicate abdicator accomplish acknowledge adjust advance anxious as a result assignment assume attempt autonomously avoid benefit beware of brief on by the same token challenging cite clarify close coaching complex confidence confident consequence constantly contribute credit crucial danger deadline deceive definition depending on deploy deter diminish dumper eager elaborate enthusiastic excellence expectation feedback forfeit forward-looking all in all get bogged down guilty halt hand over handle hand-on control hesitant however huge impede implement in an effort in short in the longer term in the same way in the short term inferior inherently initial insecure insight instead intend isolated keep track of lack literally meet the objectives milestone necessarily obtain opposite overloaded party perfectionist performance standards poor performer praise provided reasonable reassurance recognition reject repeatedly request require resentful restrict retain review roughly satisfaction save scope seek out sense of worth sensitive shirk sink spreadsheet staff morale stray strict substantive suffer from supervision the fact is tighten timeliness top performer ultimate unsupported unwillingness update vague vital waste whatever wide-ranging wind up


LEAD-IN 1. In groups discuss these statements. 1. A good business should be part of society, and you have to have pride in what you do. There's no pride in making millions of pounds, but there is pride in helping people and the environment. 2. The idea now is global responsibility. Businesses are the true planetary citizens, they can push frontiers, they can change society. 3. The e-commerce revolution will be as significant as the industrial revolution or perhaps even more so. 4. For many businesses the Internet is still a technology on search of a strategy. 5. The internet will revolutionize the way new employees are recruited 6. Think global, act local. 7. Globalization has been good for businesses. 8. Finding and developing talent is going to be a major issue. READING Text 1. GLOBAL ISSUES FOR THE 21st CENTURY

1. Before you read discuss the following questions. 1. What issues are likely to dominate the world economy in the future? 2. What do you think will be the key business issues of the 21 st century?

Global issues for the 21st century

Geopolitics and the world economy What big-picture issues are likely to dominate geopolitics and the world economy in the coming decades? Here are some suggestions: 1. The growth of the BRICs The big story of the 21st century is the growth of Brazil, Russia, India and China (plus the Middle East). This is certain to translate into increased geopolitical influence for these countries. 2. The decline of the dollar One impact of the previous trend is that the dollar will lose its status as the world's reserve currency. Central banks will hold fewer dollars, and oil will be priced in a range of currencies. But what else will happen in the currency area? Will a common Asian or Latin American currency emerge? And what about the internal conflict over the euro should it be strong to fight inflation or weak to help exporters? 3. Climate change Global warming is happening. However, any solution that holds back the progress of developing countries is likely to be resisted. Developing countries can accuse the developed nations of hypocrisy - western countries have already been through their


industrial phase and now have the luxury of thinking about sustainable growth. Developing nations don't have this luxury. 4. Peak oil Global oil production is going to peak very soon -there's just not enough left in the ground. So supply is shrinking. Also, developing nations are hungry for oil - for transport, industry, etc. So demand is rising. Put together falling supply and rising demand and you get one thing: much higher prices for the foreseeable future. 5. Energy security and alternative energy Some countries have a lot of energy resources, others don't. And if you don't, you have a major geopolitical problem. It's called dependency. Put this issue together with peak oil, and it points in one direction: alternative energy. But some green activists are unrealistic about this - solar, wind, tidal, etc can only meet a fraction of the world's energy needs. The one technology that might make a difference is nuclear. And that, of course, is controversial. 6. Shortages of other resources and commodities The bad news continues. As well as a shortage of energy, we're also short of water (in China, Southern Europe and the Middle East). And as living standards rise, we'll find that many agricultural commodities (eg wheat, corn, meat) are in short supply as well. Management and business Managers were asked, 'What do you think will be the key business issues of the 21st century?' Read their replies below. 'For me, branding and design are the key issues. Customers can easily find good quality and value-for-money - all our competitors offer this. To survive, you need more than this, you need branding. Without a strong brand, you have no customer loyalty and no pricing power. And linked to branding is design - customers will pay for design. These are the major battlefields in modern business, not cost or quality. In our organization, finding and developing talent is going to be a major issue. There's a declining birthrate, and the increased mobility of labour means that workers can choose where they work and for whom. So talent is going to be in short supply. And that's particularly true for knowledge workers and creatives. We will need to find ways to motivate them and retain them inside our organization. In the modern workplace, managing diversity is going to become increasingly complex. We've got issues of gender, ethnicity and age. We try to make equal opportunities work, but we haven't done as well as we'd like. And now we have new problems of multicultural management across national borders. Imagine the problems when team members from different cultural backgrounds hold virtual meetings on the web without the chance to get to know each other in person. The issue that we talk about more and more these days is CSR - corporate social responsibility. I'm talking about fair trade, the environmental impact of business, the


effect on local communities, sustainable development, labour practices and stuff like that. Campaigns by activists can affect your profits and destroy your brand. In many industries a major issue is the threat caused by the Internet. Basically, if it can be digitized, it can be pirated. The music and software industries have already been hit badly by this, the film industry is next and publishing will follow. Generally speaking, globalization has been good for business. But now there is a backlash against globalization amongst the public. This is creating political pressures for protectionism and for local sourcing to protect jobs. For us that means reduced access to world markets and higher costs.

2. Choose one of the six issues listed in the text and discuss it with your groupmates. When you finish choose another. 3. Choose one of the six replies given in the text. Discuss it with your group-mates. Text 2. THE E-LANCE ECONOMY

4. Before you read discuss these questions. 1. What impact are developments in information technology having on the way companies are organized, e.g. the use of video conferencing, which means people need to travel less? 2. How has the Internet changed the way you work and study?

The e-lance economy

Summary Despite the wave of big mergers and acquisitions over the past few years, the days of the big corporation - as we know it - are numbered. While the cash flows that they control are growing, the direct power that they exercise over actual business processes is declining. Because modern communications technology makes decentralised organisations possible, control is being passed down the line to workers at many different levels, or outsourced to external companies. In fact, we are moving towards what can be called an 'e-lance economy', which will be characterised by shifting coalitions of freelancers and small firms using the Internet for much of their work.

Twenty-five years ago, one in five US workers was employed by one of the top 500 companies. Today, the ratio has dropped to fewer than one in ten. Large companies are far less vertically integrated than they were in the past and rely more and more on outside suppliers to produce components and provide services, with a consequent reduction in the size of their workforce. At the same time, decisions within large corporations are increasingly being pushed to lower levels. Workers are rewarded not for carrying out orders efficiently, but for working out what needs to be done and doing it. Many large industrial companies ABB and BP Amoco are among the most prominent - have broken themselves up into


numerous independent units that transact business with one another almost as if they were separate companies. What underlies this trend? The answer lies in the basic economics of organisations. Business organisations are, in essence, mechanisms for co-ordination, and the form they take is strongly affected by the co-ordination technologies available. When it is cheaper to conduct transactions internally, with other parts of the same company, organisations grow larger, but when it is cheaper to conduct them externally, with independent entities in the open market, organisations stay small or shrink. The co-ordination technologies of the industrial era - the train and the telegraph, the car and the telephone, the mainframe computer and the fax machine - made transactions within the company not only possible but advantageous. Companies were able to manage large organisations centrally, which provided them with economies of scale in manufacturing, marketing, distribution and other activities. Big was good. But with the introduction of powerful personal computers and electronic networks - the co-ordination technologies of the 21st century - the economic equation changes. Because information can be shared instantly and inexpensively among many people in many locations, the value of centralised decision-making and bureaucracy decreases. Individuals can manage themselves, coordinating their efforts through electronic links with other independent parties. Small becomes good. In the future, as communications technologies advance and networks become more efficient, the shift to e-lancing promises to accelerate. Should this happen, the dominant business organisation of the future may not be a stable, permanent corporation but rather a flexible network of individuals and small groups that might sometimes exist for no more than a day or two. We will enter the age of the temporary company.
World business newspaper

5. Answer these questions. 1 Which of these statements gives the best summary of the ideas in the article? a) New communications technologies enable information to be shared instantly across the world. b) In the future most people will be self-employed or will work as freelancers. c) Companies are having to restructure due to developments in electronic communications. 2 What exactly do the authors mean by the term 'e-lance economy'? a) Most work inside large companies will be done using e-mail and computers. b) In the future tasks will be done by individuals and small companies linked to the Internet. c) Business between companies will increasingly be done through the Internet. 6. Mark these statements T (true) or F (false) according to the information in the text. Find the part of the text that gives the correct information. 1. Big corporations will soon go out of business, 2. There is a move towards decentralisation of decision-making in many companies. 3. Many companies are now experiencing cash flow and similar financial problems. 4. No more than 10 per cent of workers in the US work for the top 500 companies. 5. ABB and BP Amoco have sold many parts of their businesses. 6. Large organisations can save money by centralising all transactions. 7. Computer companies have decentralised their decision-making process.


8. It is possible that the shape and structure of companies wilt be very different in the future.

Text 3


7. Before you read discuss these questions. 1. What qualities do you think a person needs in order to be a successful global manager? 2. What personal and professional skills do you need for a successful business career in your country, e.g. specialist training, knowledge of foreign languages, outgoing personality?

Global Careers
Ideally, it seems a global manager should have the stamina of an Olympic runner, the mental agility of an Einstein, the conversational skill of a professor of languages, the detachment of a judge, the tact of a diplomat, and the perseverance of an Egyptian pyramid builder. And that's not all If they are going to measure up to the demands of living and working in a foreign country, they should also have a feeling for the culture; their moral judgement should not be too rigid; they should be able to merge with the local environment; and they should show no signs of prejudice. Thomas Aitken According to Colby Chandler, the former Chief Executive of Eastman Kodak Company, 'these days there is not a discussion or a decision that does not have an international dimension. We would have to be blind not to see how critically important international experience is.' International companies compete with each other for global executives to manage their operations around the world. Yet what it takes to reach the top of a company differs from one country to the next. For example, whereas Swiss and German companies respect technical creativity and competence, French and British companies often view managers with such qualities as 'mere technicians'. Likewise, American companies value entrepreneurs highly, while their British and French counterparts often view entrepreneurial behaviour as highly disruptive. Similarly, whereas only just half of Dutch managers see skills in interpersonal relations and communication as critical to career success, almost 90 per cent of their British colleagues do so. Global management expert, Andre Laurent, describes German, British and French managers' attitudes to management careers as follows: German managers, more than others, believe that creativity is essential for career success. In their mind, successful managers must have the right individual characteristics. German managers have a rational outlook; they view the organisation as a co-ordinated network of individuals who make appropriate decisions based on their professional competence and knowledge. British managers hold a more interpersonal and subjective view of the organisational world. According to them, the ability to create the right image and to get noticed for what they do is essential for career success. British managers view organisations primarily as a network of relationships between individuals who get things done by influencing each other through communicating and negotiating.


French managers look at organisations as an authority network where the power to organise and control others comes from their position in the hierarchy. French managers focus on the organisation as a pyramid of differentiated levels of power. They perceive the ability to manage power relationships effectively and to 'work the system' as critical to their career success. As companies integrate their operations globally, these different national approaches can send conflicting messages to success-oriented managers. Subsidiaries in different countries operate differently and reward different behaviours based on their unique cultural perspectives. The challenge for today's global companies is to recognise local differences, while at the same time creating globally integrated career paths for their future senior executives. There is no doubt the new global environment demands more, not fewer, globally competent managers. Global experience, rather than side-tracking a manager's career, is rapidly becoming the only route to the top. But in spite of the increasing demand for global managers, there is a potentially diminishing interest in global assignments, especially among young managers. A big question for the future is whether global organisations will remain able to attract sufficient numbers of young managers willing to work internationally.
From International Dimensions of Organisational Behaviour, Thomson Learning 1997

8. Answer these questions 1. Which of these statements gives the best summary of the text on the opposite page? a) A successful global manager needs many qualities. b) The qualities required to become a top manager differ from country to country. c) Many young managers are not interested in a global career. 2. Mark these statements T (true) or F (false) according to the information in the text. Find the part of the text that gives the correct information. a) International experience is essential if you want a global career. b) Subsidiaries of global companies use the same criteria when promoting managers. c) The demand for global managers is increasing, d) Young managers want to work internationally. 9. 1 Different qualities for career success are described for different cultures and nationalities. Match the qualities from the list below to the nationalities mentioned in the text. a) good communication skills b) technical creativity c) ability to network d) professional competence e) entrepreneurial skills f) knowing how to work within a hierarchical structure g) good interpersonal skills 10. Which national group considers communication and interpersonal skills to be more important - the British or the Dutch?


11. According to Andre Laurent, German, British and French managers see organizations as different kinds of networks. What words does he use to define these networks in each case? Text 4 WHAT DO EMPLOYERS SAY?

12. Before you read discuss these questions. 1. What do the letters MBA stand for? 2. In your country how important is it to have an MBA to succeed in management? 3. Do you know many people who have an MBA, or who are studying or plan to study for one? Are you one of them? What are your reasons for doing so?

What do employers say?

Getting an MBA is one thing. Getting employers to take it seriously is another. MBAs have not traditionally commanded the same respect in the UK as in the US, but an increasing number of UK employers are now taking them very seriously indeed. None more so than top management consulting firm McKinsey. Of its 260 London consultants, around half have MBAs. The company actively recruits 30-40 people a year from major business schools, such as INSEAD in France, Harvard and Stanford in the US, and London Business School and Manchester in the UK. It spends around 1 million a year sponsoring its 25-30 graduate recruits to complete full-time MBAs at the same institutions. Essentially we see an MBA as a short cut to business experience', says Julian Seaward, head of recruitment for McKinsey's London Office. 'It enriches people with a lot of management theory, and perhaps a bit of jargon thrown in.' However, the company still prefers MBAs gained abroad. With a longer established reputation in the US, business schools there still have the edge in attracting candidates, while INSEAD has positioned itself as an international school with a cosmopolitan faculty and student body. 'The networking and experience of other cultures is very useful as a lot of our clients are global', says Seaward. Nevertheless, McKinsey is actively raising its profile over here with a recentlylaunched scheme offering external candidates sponsorship through a United Kingdom MBA with a guaranteed job afterwards. With a 50,000 Harvard MBA, McKinsey knows how attractive its staff are to other employers. Those who wish to leave within two years have to repay their sponsorship, but Seaward believes the staff development strategy has a good return rate. 'We look for people to develop a long-term career with us, not just an analyst job for a couple of years, and reward high achievers with good salaries and opportunities.' Equally convinced of the value of MBAs is direct marketing company OgilvyOne Worldwide, which recently established an MBA bursary for staff members. Chairman Nigel Howlett believes the MBA's formal education in analytical skills and constructing solutions provides a very useful training, producing people who have a good overview of business issues rather than a concern for details. The company is currently undertaking an evaluation of the best UK schools in which to invest their bursary. With the recent big increase in the number of institutions offering MBAs, Howlett is concerned that not all MBAs are equal. 'There are clear differences in terms of quality.'


But not every company favours MBAs. In the early 1990s, Shell actually abandoned its own MBA course at Henley when it realised it was not producing graduates who fitted the jobs for which they were destined. 'We're slightly ambivalent towards MBAs,' says Andy Gibb, Shell's head of global recruitment. 'A lot of Shell's work is technical, while MBAs from leading schools are pitched at a more strategic level. It can be frustrating and unnecessary to be trained for strategic thinking, when the job you're moving into is not really suited to that. We would rather focus them on technical leadership.' Companies like chartered accountants PricewaterhouseCoopers take a more middle-of-the-road approach. While it does not actively target MBAs or recruit them directly from business schools, a growing proportion of its senior consultants have got them, and it is increasingly on the lookout for MBA graduates. 'Our business is changing from audit and tax management more into consultancy roles,' says UK recruitment partner Keith Bell. 'MBAs do bring a breadth of vision to the business problem rather than a narrow viewpoint, and that can be an advantage. But the issue is the longer term. If you sponsor someone to do an MBA, will you get them back again?'
From The Independent

13. Answer these questions. 1 What is the attitude of UK employers to MBAs? Are they very positive, negative or in between? 2 Several top business schools are mentioned in the text - which ones are they? Do you agree with this list? Would you add others? 3 According to the article, do most MBA students pay for themselves? 4 In which country are MBAs very highly regarded by employers, according to the article? 5 Four companies are mentioned in the article. Rank them in order in terms of their attitude to MBAs, starting with the one most in favour. 6 Some disadvantages about MBAs are mentioned by people quoted in the article. What are they? 7 Businesses are generally grouped into two broad categories - manufacturing and production on one side, and services on the other side. Into which categories do the four companies mentioned in the article fit? What does this tell you about the type of companies which generally favour MBAs? Is this the case in your country too?

14. The article has four main parts, each one describing the attitude of one company to MBAs. Each part has a clear introductory sentence that indicates whether the companv is in favour of MBAs or not Find the introductory sentences and decide if the sentence indicates a positive or negative attitude to MBAs. LISTENING Martin Phelps, Business Director at the advertising agency Ogilvy and Mather in London, is talking about how customer needs are changing. There are eight factual


mistakes in the interview summary below. Read the summary. Then listen to the interview and correct the mistakes. The changing needs of customers Customer needs are changing because of developments in three key areas: environmental issues, technology and time. The change in social environment concerns the type of households that we live in. The classic family unit - mother, father and family pets - only constitutes about 50% of the UK population, and is being replaced by a variety of other forms. These include single-person households, single-parent households, and households where children share a house - but live as individuals rather than as a single family. The changes caused by technological developments are being driven in particular by the rapid expansion m the use of e-mail and the growing importance of household appliances. Finally, as our lives become less busy, customers are starting to expect 'value for time' when making a purchase. This can mean saving customers' time, for example through Internet shopping: or. on the other hand, creating an environment where shopping is treated as a business transaction that customers actually want to spend time on and enjoy. Discuss these questions. 1 What does the Henley Centre do? 2 Amazon.com and the bookshop chain Waterstones both offer 'value for time' but in different ways. What are the differences? 3 Which is more important to you when making a purchase: 'value for time' or 'value for money'? Why? DISCUSSION QUESTIONS 1. Is globalization good or bad for businesses? 2. Are consumers in your country concerned about the environmental policies of businesses? 3. Would you pay more for things produced in environmentally-friendly manner? If so, why? 4. What are the risks of e-commerce for a) the companies involved b) their customers? 5. How can businesses use the Internet effectively? 6. How important is it for companies to anticipate future trends in consumer behaviour? What methods can they use to do so? 7. Can you predict possible changes to products and services by the year 2030? 8. How do you see businesses developing in the future? 9. What are the implications for the way international managers will need to work in the future and also for the training and education they will need? 10. What personal qualities and suitability factors for the position in a global company would you list in your letter of application ?


Background KGV is a traditional high-street music retailer. Based in Amsterdam, it has 12 stores in the Netherlands, three of which are megastores. Some years ago, it expanded into the rest of Europe and now owns 65 stores eight of these are megastores. The company is at present going through a difficult period. Over the last three years, profits have steadily fallen, from 450 million to e290 million. The megastores sales have risen by 8%, accounting for 55% of the companys turnover, but the increased revenue has been achieved only by heavy expenditure on advertising and promotion. Fierce competition, a narrow product range and a lack of innovation are some of the reasons for KGVs poor performance. The management are concerned, especially, that they are not exploiting the opportunities offered by selling through the Internet.

Market study
A study by KGV's Marketing Department was recently carried out and it produced the following findings: 1 It is estimated that, in five years' time, 70% of all music products will be bought via the Internet. 2 Sixty-five percent of consumers under the age of 30 prefer to do their shopping via the Internet. 3 KGV's customers would like stores to provide a wider product range (see chart 1). 4 Average spending per month in KGV's medium-sized stores is highest among the 41-60 age group (see chart 2). 5 Spending on music products by the over-60 age group will increase significantly in the next ten years in Europe. 6 The various age groups have clear preferences as to the type of music they enjoy and purchase (see chart 3). Listen to a conversation between Michael Johnson, a director of KGV, and Hanna Driessen, the recently appointed Financial Director of the company. They are discussing the company's strategy before a forthcoming management meeting about KGV's future. Make short notes on the opinions they express.


CHART 1: Preferences for additional products / services (% of respondents for each category) Age 18-40 Age 41 + spoken word (talking 4 44 books) computer games 62 15 holiday information 35 48 computer software 58 32 banking services 25 12 concert tickets 70 75

CHART 3:Preferences of consumers for music products

You are the Managing Director of KGV. Write an e-mail to a director of the company who was unable to attend the management meeting. In the e-mail, summarise the discussion and decisions of the meeting and ask the director for his/her comments.



Speaking Convincing a sponcor Like Patagonia, many companies sponsor, or contribute money towards, events or activities to maintain their image or to create a new image. Sponsorship can cover a whole range of activities including sport, education and local community projects depending on the type of image the company wants to project. For example, IBM sponsored the 2000 Olympic Games in Sydney, and Coca-Cola sponsors 151 American college students every year. 1. In pairs, make a list of companies which sponsor activities like those mentioned above. What kind of image does each company want to project through its sponsorship? 2. In groups, choose one of the following projects which need sponsorship.

3. Choose an international company to approach for sponsorship. Discuss what your project can offer them and prepare the arguments that you will use to persuade them to sponsor your project. Look at checklist of questions opposite that a company will ask itself before sponsoring a project. How would you answer these questions? 1. Will the project appeal to our customers? 2. Does it have a logical link with our company? If not, could one be developed? 3. Is it unique or one of many similar things on offer? 154

4. Will there be other sponsors? If so, are they our competitors? 5. What kind of media coverage does the project offer? (for example, local press, TV, company name / logo on T-shirts, programmes etc.) 6. What are the chances of it being successful? (We don't want negative publicity.) 7. If our sponsorship is a success, will there be future opportunities to continue our connection with the project? 8. Does it present an opportunity to invite our employees or shareholders as observers or participants? 9. Are any of our customers involved directly or indirectly in this project? WRITING 1. In the same groups, write a letter to the company asking them to consider your request for sponsorship. Use the guidelines below to help you.

2. Read the other groups' letters. Consider each one as if you were the company directors. Which project would you choose and why?


Study the following words and phrases abandon accelerate according to accuse acquire advance advantageous affect/influence ambivalent appropriate attractive available basically blind carry out common compete competitor conduct consequent controversial corporate social responsibility currently customer loyalty decline demand dependency despite destroy digitize diminishing disruptive diversity drop emerge enrich essentially exercise exist fair favour foreseeable frustrating generally speaking get noticed have the edge hold a view hold back however hypocrisy ideally in essence in spite of in terms of increase decrease increasingly influence/impact/effect instantly interpersonal likewise linked to luxury make a difference merge middle-of-the-road negotiate nevertheless no doubt numerous particularly pass down perceive primarily prominent rapidly rather recently recognize reduce rely on remain repay resist respect retain reward rigid share shift shortage should this happen shrink similarly slightly stable sufficient supply survive sustainable temporary the same threaten tidal underlie undertake view whereas willing work out


TEXT 1 ART OR SCIENCE? Management is the art and science of making appropriate choices. To one degree or another, we are all involved in managing and are constantly making decisions concerning how to spend or use our resources. Like most things in our modern, changing world, the function of management is becoming more complex. The role of the manager today is much different from what it was one hundred years, fifty years or even twenty-five years ago. At the turn of the century, for example, the business manager's objective was to keep his company running and to make a profit. Most firms were production oriented. Few constraints affected management's decisions. Governmental agencies imposed little regulations on business. The modern manager must now consider the environment in which the organisation operates and be prepared to adopt a wider perspective. That is, the manager must have a good understanding of management principles, an appreciation of the current issues and broader objectives of the total economic political, social, and ecological system in which we live, and he must posses the ability to analyze complex problems. The modern manager must be sensitive, and responsive to the environment that is he should recognize and be able to evaluate the needs of the total context in which his business functions, and he should act in accord with his understanding. Modern management must posses the ability to interact in an ever-more-complex environment and to make decisions that will allocate scarce resources effectively. A major part of the managers job will be to predict what the environment needs and what changes will occur in the future. Organizations exist to combine human efforts in order to achieve certain goals. Management is the process by which these human efforts are combined with each other and with material resources. Management encompasses both science and art. In designing and constructing plans and products, management must draw on technology and physical science, of course, and, the behavioral sciences also can contribute to management. However much you hear about scientific management or management science, in handling people aid managing organizations it is necessary to draw on intuition and subjective judgment. The science portion of management is expanding, more and more decisions can be analyzed and programmed, particularly with mathematics. But although the artistic side of management may be declining in its proportion of the whole process it will remain central and critical portion of your future jobs. In short: Knowledge (science) without skill (art) is useless, or dangerous; Skill (art) without knowledge (science) means stagnancy and inability to pass on learning; Like the physician, the manager is a practitioner. As the doctor draws on basic sciences of chemistry, biology, and physiology, the business executive draws on the sciences of mathematics, psychology, and sociology. 1. The function of management is becoming more complex. Why? 2. What must management possess nowadays? 3. Management encompasses both science and art. In what can we see it?


TEXT 2 PRINCIPLES OF THE MANAGEMENT Different scholars offer different sets of principles of management. The most famous are the following fourteen. But the main principle should be read as follows: there is nothing rigid or absolute in management affairs, it is all a question of proportion. Accordingly if you view the following list of these principles as a set of important topics and sometimes applicable guidelines for managers, you will be keeping close to the spirit in which they were originally suggested. 1. Division of work. Within limits, reduction in the number of tasks a worker performs or the number of responsibilities a manger has can increase skill and performance. 2. Authority. Authority is the right to give orders and enforce them with reward or penalty. Responsibility is accountability for results. The two should be balanced, neither exceeding nor being less than the other. 3. Discipline. Discipline is the condition of compliance and commitment that results from the network of stated or implied understandings between employees and managers. Discipline is mostly a result of the ability of leadership. It depends upon good supervisors at all levels making and keeping clear and fair agreements concerning work. 4. Unity of command. Each employee should receive orders from one superior only. 5. Unity of direction. One manager and one plan for each group of activities having the same objective is necessary to coordinate, unify, and focus action. 6. Subordination of individual interests to general interest. Ignorance, ambition, selfishness, laziness, weakness, and all human passion tend to cause self-serving instead of organization-serving behavior on the job. Managers need to find ways to reconcile these interests by setting a good example and supervising firmly and fairly. 7. Remuneration of personnel. Various methods of payment may be suitable, but amounts should reflect economic conditions and be administered to reward well-directed effort. 8. Centralization. Like other organisms, organizations need direction and coordination from a central nervous system. But how much centralization or decentralization is appropriate depends upon the situation. The degree of centralization that makes best use of the abilities of employees is the goal. 9. Scalar chain (line of authority). The scalar chain is the chain of command ranging from the top executive to the lowest ranks. Adhering to the chain of command helps implement unity of direction, but sometimes the chain is too long, and better communications and better decisions can result from two or more department heads solving problems directly rather than referring them up the chain until a common superior is reached. 10. Order. Both equipment and people must be well chosen, well placed, and well organized for a smooth-running organization. 11. Equity. Kindliness and justice will encourage employees to work well and be loyal. 12. Stability of tenure of personnel. Changes in employee assignments will be necessary, but if they occur too frequently they can damage morale and efficiency. 13. Initiative. Thinking through a plan and carrying it out successfully can be deeply satisfying. Managers should set aside personal vanity and encourage employees to do this as much as possible. 14. Esprit de corps. Build teamwork.


1. Dwell on the importance of each principle in the work of a manager. Try to exemplify your answer. TEXT 3 SCIENTIFIC MANAGEMENT No one has had more influence on managers in the 20th century than Frederick W.Taylor, an American engineer. He set a pattern for industrial work which many others have followed, and although his approach to management has been criticized, his idea are still of practical importance. Taylor founded the school of Scientific Management just before the 1914-18 war. He argued that work should be studied and analyzed systematically. The operations required to perform a particular job could be identified, then arranged in a logical sequence. After this was done, a workers productivity would increase, and so would his/her wages. The new method was scientific. The way of doing a job would no longer be determined by guesswork and rule-of-thumb practices. If the worker followed the prescribed approach, his/her output would increase. Taylors solutions to the problems were based on his own experience. When he was with Bethlehem Steel, Taylor criticized management and workers. He conducted many experiments to find out how to improve their productivity. He felt that managers used not the right methods and the workers did not put much effort into their job. They were always soldiering taking it easy. He wanted both groups to adopt a new approach to their work. The new way was as follows: 1. Each operation of a job was studied and analyzed; 2. Using the information, management worked out the time and method for each job, and the type of equipment to be used; 3. Work was organized so that the workers only responsibility was to do the job in the prescribed manner; 4. Men with the right physical skills were selected and trained for the job. The weakness of his approach was that it focused on the system of work rather than on the worker. With this system a worker becomes a tool in the hands of management. Another criticism is that it leads to de-skilling reducing the skills of workers. And with educational standards rising among factory workers, dissatisfaction is likely to increase. Finally, some people think that it is wrong to separate doing from planning. A worker will be more productive is he/she is engaged in such activities as planning, decision-making, controlling and organizing. 1. Give some information about F.W Taylor and his contribution to management. 2. Speak for and against his principles. TEXT 4 MANAGEMENT BY OBJECTIVES Management by objectives (MBO) is a system which was first described by Peter Drucker in 1954. Since then, MBO has attracted enormous interest from the business world, and its principles have been applied in many of the worlds largest companies. P. Drucker emphasized that an organization and its staff must have clear goals. Each individual must understand the goals of the enterprise he/she works for, and must make contribution to them. It is also vital that the individual knows what his/her manager expects of her. An individual must know what sort of results he/she is expected to


achieve. If an organization uses MBO approach, it must pay careful attention to planning. A special feature of MBO is that the subordinate participates with the manager in developing objectives. Various kinds of MBO systems are used in organizations. Here is an example of how a programme might work in a company. The programme consists of several stages. First, the subordinates job is defined. Next, his/her current performance is evaluated. Then, new objectives are developed by the subordinates and their managers. Finally, the programme is put into action. Later, there are periodic reviews of the persons performance, and his/her progress is checked. The subordinates and the manager discuss the objectives and make plans for achieving them. The manager may help in some way, perhaps by providing more training for the subordinate or buying more modern machines. From time to time, the subordinate and the manager meet to discuss progress. It is vital that the manager receives feedback from the subordinate on performance and achievements. There are many benefits of MBO. The system helps the subordinates to see clearly their role in the organization. They have a say in how their job is performed, and what goals should be. Workers feel more responsible and motivated. MBO is a good technique for assessing the individuals performance. People are judged on results, rather than on the personal feelings and prejudices of the managers. The main limitations of the system are that it is time-consuming and may create a lot of paperwork. In practice, MBO programmes are often fully supported by managements. This could be because managers are not always skilled at interviewing and giving guidance. 1.Who is the father of MBO? 2. What are the principles of the system? 3. How does the programme work? 4. What are the benefits and limitations of the system? REPUTATION MANAGEMENT by Roger White Integrity and reputation are the only real assets held by partners in professional services firms; when one is lost, everything else follows. For that reason, every firm must develop a plan to prepare for the day its corporate integrity is threatened. A problem becomes a crisis when the media starts paying attention to it, amplifies it, and matters escalate rapidly out of your immediate control. It affects the everyday life of the organisation, with real and lasting risks to the firm's image and reputation. When, where, and how the crisis is resolved is entirely in your hands. Would you know what to do if a problem at your firm were to evolve into a genuine crisis? Having navigated through a variety of crises, I have learned a number of hard lessons, culminating in the following "top 10 tips" for managing in a crisis. 1. Don't panic! Stay calm, think clearly, and act fast. Remember to look at issues from an external-not an internal-viewpoint. 2. Manage the response early and from the top. Your CEO or senior partner should stand up and be the voice of the firm. Find agreement on your crisis strategy, get the commitment of top management, and then provide decisive leadership. Indecision from the top, slow or late responses to the media will make you a bigger target. 3. Put someone clearly in control of managing the crisis. Your point person should


be a senior person who has the credibility, authority, and courage to make decisions fast, without time-consuming, widespread consultation. Establish an effective communications network to enable the fast flow of information both internally and externally. 4. Form a small but dedicated multi-disciplinary crisis team, including advisers, communications specialists, lawyers, risk managers, technical specialists, and seasoned hands. Bring in an experienced crisis/ reputation management adviser to provide objectivity and an external perspective. 5. Conduct a very fast SWOT analysis of the problem. Your analysis will be key to how you go forward, possibly for years ahead. A prerequisite of crisis management is brutal honesty with yourselves; if you are less than open with each other, the crisis will control you. It is important to avoid apportioning blame. Accept that you are accountable as a firm, and take collective responsibility Try to keep in mind that the media is not the problem: be cooperative and don't he distracted by the clamour. 6. Formulate your key messages quickly, and stick to them. Make the case clearly and simply, ensuring that it is understood both inside and outside the firm and that everyone is singing from the same songsheet. Look to identify positive messages as well as responses to the negatives. 7. Handle the media sensitively, professionally, and with an understanding of their agenda. The media will have three questions: What happened? Why? And, what are you doing about it? Don't allow a communications vacuum to occur. Nature abhors a vacuum and so does the media. If you don't tell them anything, there are plenty of others who will fill the void, and you can be sure they will not be on your side. 8. Listen to your stakeholders and the public. Research what people are really thinking about your firm. Don't base your strategy solely on what the media are saying, but find out what impact the crisis is having on clients, employees, and other key audiences. Then, craft your tactics to get the real messages through to the people that matter. Continue to monitor and measure public perceptions long after the immediate crisis has passed. 9. Use direct communications with your stakeholders. The media has the widest impact but it is uncontrolled. Take advantage of your "narrow cast" channels to get specific messages to identifiable audiences. 10. Never lie! Outright untruths - as well as lies by omission - can only serve to exacerbate your problem. Great crisis management is a critical part of great reputation management. The leadership of a professional services firm, and the partners in it, must manage their reputation as aggressively as they manage costs or any other management responsibility. 1. What advice would you give to senior managers on how to avoid a potentially damaging public crisis? 2. Decide whether the following statements are true or false according to the text: a) During the crisis it is advisable for senior management to follow standard consultation procedures when making decisions. b) It is a good idea to employ the services of outside consultants to advise you on how to manage the crisis. c) It is essential for the management of a company in crisis to be absolutely honest with themselves.


d) During a crisis it is advisable to create detailed messages informing the public about the situation. e) Once the crisis is over, it is advisable to carry out continuing research in order to evaluate the company's reputation. 3. Summarize what, according to the article, are the key things to avoid during a crisis. 4. 4. Read the extracts from Eric DAMAGE CONTROL Dezenhall's book on the right, and answer the questions. Crisis management, while a rare corporate discipline, is nevertheless a fundamental one 1 What did crises cost a because the future of the enterprise is on the line. leading cell phone manufacturer, A grieving widower appeared on Larry King Live Merck, Perrier and Audi? Why in 1992 and speculated that his wife's terminal does Dezenhall refer to them? cancer was caused by a cellular telephone: 2 How does Dezenhall Motorola, the leading cell phone manufacturer, argue these concepts are relevant saw its stock drop by 20 percent in the following for crisis survivors? days. Merck's recall of its arthritis drug Vioxx cost the company roughly $750 million in the fourth quarter of 2005 alone. A Merrill Lynch stock analyst estimated that damages against the strong leaders feel-good company could run between $4 billion and $18 climate shifts gurus billion. Perrier was toppled from its perch atop the pain guarantees bestselling bottled water mountaintop after the thresholds baby steps chemical benzene was found in its product. And selfthe little guy when the Audi 5000 was accused of "sudden knowledge acceleration," its sales evaporated and the Audi luck brand essentially vanished from the U.S. market for a decade. 3 According to Dezenhall, how has the way we judge a crisis WHO SURVIVES? changed? 4 What is the political Companies (and individuals) that survive crises tend to have certain features in common, features model of crisis management? 5 How does Dezenhall see that are often evident in the first moments of an the media in general and TV in engagement. They have strong leaders who have broad particular? authority to make decisions. They question conventional PR wisdom and do not worship at the altar of feel good gurus who Discussion espouse "reputation management," the canard that corporate redemption follows popularity. They are flexible, changing course when the 5. In small groups, discuss operating climate shifts (which it usually does). the questions. They commit significant resources to the resolution of a crisis with absolutely no 1 In our culture, whoever guarantee that these resources will provide attacks, wins, whoever defends, results. loses. Is this a sad indictment of They have a high threshold for pain, American culture, a more global recognizing that things may get worse before phenomenon, or a misleading they get better. exaggeration?


2 Do you think there are circumstances in which PR firms should defend companies that pollute the environment, exploit workers, or market defective products? 3 In your opinion, which of Dezenhall's characteristics of crisis survivors can or cannot be influenced or developed by PR firms? 4 Dezenhall presents competitors, lawyers, the news media, politicians and regulators, short-sellers, NGOs. corporate stalkers, whistleblowers and bloggers as opponents that want to torpedo you. Is this paranoia, sensationalism, savvy marketing, or simply facing facts? 5 As CEO of a large corporation, would you hire Dezenhall's company? Why (not)?

They think in terms of baby steps, not grandiose gestures, which explains Rome's success, after all. They know themselves, and are honest about what kinds of actions their culture can - and cannot - sustain. They believe that corporate defense is an exercise in moral authority, and that their critics are not necessarily virtuous simply because they purport to be standing up for the "little guy". They are lucky, often catching unexpected breaks delivered by God, nature, Fortune, or some other independent factor. Enterprises and individuals under siege need all the help they can get these days. Since the tech bubble burst and corporate scandals have come to fill the media vacuum once occupied by lionizing of messianic CEOs, it seems as if no one's exempt from hostile scrutiny. Crises are now judged not only by financial (Did the company recover?) and ethical (Was the public welfare served?) standards, but by whether the company handled its crisis effectively in the eyes of Wall Street, Madison Avenue, the plaintiff's bar, and twentyfour-hour-a-day cable news. Inevitably, the airwaves are filled with experts from various fields who will opine that the crisis is being mismanaged. (Saying "all's well" doesn't make for very good TV.) We endorse a political model of crisis management versus the more conventional public relations approach. The fundamental difference is that the political model, which is practiced in our hometown of Washington, D.C., assumes the threat of motivated adversaries while the public relations model tends to view crises as organic and resolvable through good communications. In real crises there are often opponents - a mirror image of your own crisis management team -- that want to torpedo you. That opposing team consists of competitors, plaintiffs lawyers, the news media, politicians and regulators, short-sellers, multimillion dollar non-governmental organizations (NGOs), corporate stalkers, whistleblowers and bloggers. These opponents don't care whether you "do the right thing"; they care about defeating you.


BILL GATE'S COLUMN TEN ATTRIBUTES OF A GOOD EMPLOYEE I'm often asked how to be a good manager, a topic I've taken on this column more than once. Less often does anybody ask an equally important question: What makes a good employee? Here are 10 of the qualities I find in the "best and brightest" employees, the people companies should attract and retain. If you have all of these attributes, you're probably a terrific employee. First, it's important to have a fundamental curiosity about the product or products of your company or group. You have to use the products yourself. This can't be stressed enough in the computer world. It also carries special weight in other knowledge-based fields where technology and practices are advancing so fast that's it's very hard to keep up. If you don't have a fascination with the products, you can get out of date - and become ineffective - pretty quickly. Second, you need a genuine interest in engaging customers in discussions about how they use products - what they like, what they don't like. You have to be a bit of an evangelist with customers, and yet be realistic about where your company's products are falling short and could be better. Third, once you understand your customer's needs, you have to enjoy thinking through how a product can help. If you work in the software industry, for example, you might ask: "How can this product make work more interesting? How can it make learning more interesting? How can it be used in the home in more interesting ways?" Fourth, you as an individual employee should maintain the same type of longterm approach that a good company does. Employees need to focus on lifelong goals such as developing their own skills and those of the people they work with. This kind of selfmotivation requires discipline, but it can be quite rewarding. Management can also encourage motivation, of course. If you're in sales, quotas are important tools for measuring performance, and it's great when employees beat a quota. But if beating your sales quota or maximizing your next bonus or salary increase is all that motivates you, you're likely to miss out on the kind of teamwork and development that create success in the long term. Fifth, you need to have specialized knowledge or skills while maintaining a broad perspective. Big companies, in particular, need employees who can learn specialties quickly. No one should assume that the expertise they have today will suffice tomorrow, so a willingness to learn is critical. Sixth, you have to be flexible enough to take advantage of opportunities that can give you perspective. At Microsoft, we try to offer a person lots of different jobs through the course of a career. Anyone interested in joining management is encouraged to work in different customers units, even if it means moving laterally within the organization or relocating to a different part of the world. We try to move people from our product groups out into the field and move field people into the products groups. We have many people in our U.S. subsidiary from other countries and we have many U.S. employees who work for subsidiaries in other nations. This helps us better understand world markets, and while we do a pretty good job of cross-pollination, there's still not quite as much of it as I would like. Seventh, a good employee will want to learn the economics of the business. Why does a company do what it does? What are its business models? How does it make money? I'm always surprised to learn of a company that doesn't educate its employees in


the fundamental financial realities of its industry. Employees need to understand the "make or break" aspects of their industry so that they know what it is about their own job that really counts. Of course, employees have to be willing students who direct attention to the areas where it makes the biggest difference. Eighth, you must focus on competitors. I like employees who think about what's going on in the marketplace. What are our competitors doing, that's smart? What can we learn from them? How can we avoid their mistakes? Ninth, you've got to use your head. Analyze problems but don't fall prey to "analysis paralysis" Understand the implications of potential tradeoffs of all kinds, including the tradeoff between acting sooner with less information and later with more. Use your head in practical ways, too. Prioritize your time effectively. Think about how to give advice crisply to all groups. Finally, don't overlook the obvious essentials such as being honest, ethical and hardworking. These attributes are critical and go without saying. A REAL BUSINESSMAN A good businessman is a notion that consists of many parts and depends on businessman's qualities. A good businessman is quick to size up the situation, sew up a favorable contract and turn to at once. He always covers up his feelings and glosses over the defects of the production. He is rather wise to pay off his debts, not to foul up his business and dish up a suitable opinion. If he can't come up with a bright idea, he will hold on to his people's or settle for not so bright but suitable one. If he can't make anything of a problem, he will bone on it and get around to its solving just not to lag behind. He will answer for his actions and won't chicken out of any trouble. If a businessman possesses such qualities, we can put him down as a real one. EXERCISE 1 Find English equivalents in the text and make up sentences of your own. - -, , , , -, , , , , , , , , , - , , , . EXERCISE 2 Fill in the blanks. 1. It ... on how you'll behave. 2. We can ... him down as a complete fool. 3. Don't ... out of the fight. It's not manlike. 4. Everyone should for his deeds and ... off his debts. 5. John cut many classes and finally ... behind. 6. It takes Sally years to ... around to visiting her aunt. 7. You should ... on the subject before the exam. 8. I can ...nothing of it. 9. We wanted a red one, but ... for a blue one, 10. That's a nice thought. Bob. ... on it. 11. If you can not ... up with any idea and ... up a contract, you'll be fired.


12. He seems to ... up his opinion rather freely. 13. Don't ... up this work. 14. Neil ... up the situation and ... up his feelings. 15. You should ... over the defects of your work. 16. It's time to ... to. HOW TO DEAL WITH A DIFFICULT BOSS
Donna Brown Hogarty

Harvey Gittler knew his new boss was high-strung - the two had worked together on the factory floor. But Gittler was not prepared for his co-worker's personality change when the man was promoted to plant manager. Just two days later, the boss angrily ordered a standing desk removed because he'd seen a worker leaning on it to look up an order. He routinely dressed down employees at the top of his lungs. At one time or another he threatened to fire almost everyone in the plant. And after employees went home, he searched through trash cans for evidence of treason. For many workers, Girder's experience is frighteningly familiar. Millions of Americans have temperamental bosses. In a 1984 Center for Creative Leadership study of corporate executives, nearly 75 percent of the subjects reported having had at least one intolerable boss. "Virtually all bosses are problem bosses, in one way or another," says psychologist Mardy Grothe, co-author with Peter Wylie of Problem Bosses: who they are and how to deal with them. The reason, he said, lies in lack of training. Most bosses were promoted to management because they exceiled at earlier jobs - not because they have experience motivating others. Uncertain economic times worsen the bad-boss syndrome. "There is an acceptance of getting results at any price," says Stanley Bing, a business executive and author of Crazy Bosses. "As a result, the people corporations select to be bosses are the most rigid and demanding, and the least able to roll with the punches." Bad bosses often have a recognizable modus operandi. Harry Levinson, a management psychologist in Waltham. Massachusetts, has catalogued problem bosses, from the bully to the jellyfish to the disapproving perfectionist. If you're suffering from a bad boss, chances are he or she combines several of these traits and can be dealt with effectively if you use the right strategy. The Bully During his first week on the job, a new account manager at a small Pennsylvania advertising agency agreed to return some materials to a client. When he mentioned this at a staff meeting, the boss turned beet red, his lips began to quiver and he shouted that the new employee should call his client and confess he didn't know anything about the advertising business, and would not be returning the materials. Over the next few months, as the account manager watched co-workers cower under the boss's browbeating, he realized that the tyrant fed on fear. Employees who tried hardest to avoid his ire were most likely to catch it. "He was like a schoolyard bully," the manager recalls, "and I've known since childhood that, when confronted, most bullies back down." Armed with new-found confidence and growing knowledge of the ad business, he matched his boss's behavior. "If he raised his voice. I'd raise mine," the manager recalls. True the type, the boss started to treat him with grudging respect. Eventually, the young man moved up the ranks and was rarely subjected to his boss's outbursts.


Although standing up to the bully often works, it could make matters worse. Mardy Grothe recommends a different strategy: reasoning with him after he's calmed down. "Some bosses have had a problem with temper control all their lives, and are not pleased with this aspect of their personality," he explains. Want a litmus test? If the boss attempts to compensate for his outburst by overreacting and trying to "make nice" the next day, says Grothe, he or she feels guilty about yesterday's bad behavior. Grothe suggests explaining to your boss how his temper affects you. For instance, you might say. "I know you're trying to improve my performance, but yelling makes me less productive because it upsets me." Whatever strategy you choose, deal with the bully as soon as possible, because "once a dominant/ subservient relationship is established, it becomes difficult to loosen," warns industrial psychologist James Fisher. Fisher also suggests confronting your boss behind closed doors whenever possible, to avoid being disrespectful. If your boss continues to be overbearing, try these strategies from psychologist Leonard Felder, author of Does someone at work treat you badly? To keep your composure while the boss is screaming, repeat a calming phrase to yourself, such as "Ignore the anger. It isn't yours." Focus on a humorous aspect of your boss's appearance. If she's got a double chin, watch her flesh shake while she's yammering. "By realizing that even the most intimidating people are vulnerable, you can more easily relax," explains Felder. Wait for your boss to take a breath, then try this comeback line: "I want to hear what you're saying. You've got to slow down." Finally, never relax with an abusive boss, no matter how charming he or she can be, says Stanley Bing. "The bully will worm his or her way into your heart as a way of positioning your face under his foot." The Workaholic "Some bosses don't know the difference between work and play," says Nancy Ahlrichs, vice president of client services at the Indianapolis office of Right Associates, an international outplacement firm. "If you want to reach them at night or on a Saturday, just call the office." Worse, such a boss invades your every waking hour, making it all but impossible to separate your own home life from the office. Ahlrichs advises setting limits on your availability. Make sure the boss knows you can be reached in a crisis, but as a matter of practice go home at a set time. If he responds angrily, reassure him that you will tackle any project first thing in the morning. Get him to set the priorities, so you can decide which tasks can wait. If you have good rapport with the boss, says Mardy Grothe, consider discussing the problem openly. Your goal is to convince him that just as he needs to meet deadlines, you have personal responsibilities that are equally important. The Jellyfish "My boss hires people with the assumption that we all know our jobs," says a woman who works for a small firm in New England. "Unfortunately, he hates conflict. If someone makes a mistake, we have to tiptoe around instead of moving to correct it, so we don't hurt anyone's feelings." Her boss is a jellyfish. He has refused to establish even a basic pecking order in his office. As a result, a secretary sat on important correspondence for over a month, risking a client's tax write-offs. Because no one supervises the firm's support staff, the secretary never received a reprimand, and nobody was able to prevent such mishaps from recurring. The jellyfish simply can't take charge because he's afraid of creating conflicts.


So "you must take charge," suggests Lee Colby, a Minneapolis-based management consultant. "Tell the jellyfish: This is what I think I ought to be doing. What do you think?' You are taking the first step, without stepping on your boss's toes." Building an indecisive supervisor's confidence is another good strategy. For example, if you can supply hard facts and figures, you can then use them to justify any course you recommend - and gently ease the jellyfish into taking a firmer position. The Perfectionist When Nancy Ahlrichs was fresh out of college, she landed her first full-time job, supervising the advertising design and layout of a small-town newspaper. On deadline day, the paper's irritable general manager would suddenly appear over her shoulder, inspecting her work for errors. Then he'd ask a barrage of questions, ending with the one Ahlrichs dreaded most: "Are you sure you'll make deadline?" "I never missed a single deadline," Ahlrichs says, "yet every week he'd ask that same question. I felt belittled by his lack of confidence in me." Ironically, the general manager was lowering the staff's productivity. To paraphrase Voltaire, the perfect is the enemy of the good. According to psychiatrist Allan Mallinger, co-author with Jeannette DeWyze of Too Perfect: When Being in Control Gets Out of Control, "the perfectionist's overconcern for thoroughness slows down everyone's work. When everything has to be done perfectly, tasks loom larger." The nit-picking boss who is behind schedule becomes even more difficult, making subordinates ever more miserable. "Remember," says Leonard Felder, "the perfectionist needs to find something to worry about." To improve your lot with a perfectionist boss, get her to focus on the big picture. If she demands that you redo a task you've just completed, mention your other assignments, and ask her to prioritize. Often, a boss will let the work you've completed stand - especially when she realizes another project may be put on hold. If your boss is nervous about a particular project, offer regular reports. By keeping the perfectionist posted, you might circumvent constant supervision. Finally, protect yourself emotionally. "You can't depend on the perfectionist for encouragement," says Mallinger. "You owe it to yourself to get a second opinion of your work by asking others." The Aloof Boss When Gene Bergoffen, now CEO of the National Private Truck Council, worked for another trade association and asked to be included in the decision-making process, his boss was brusque and inattentive. The boss, made decisions alone, and very quickly. 'We used to call him 'Ready, Fire, Aim," says Bergoffen. Many workers feel frozen out by their boss in subtle ways. Perhaps he doesn't invite them to key meetings or he might never be available to discuss projects. "At the core of every good boss is the ability to communicate expectations clearly," says Gerard Roche, chairman of Heidrick & Struggles, an executive search firm. "Employees should never have to wonder what's on a boss's mind." If your boss fails to give you direction, Roche says, the worst thing you can do is nothing. Determine the best course of action, then say to your boss: "Unless I hear otherwise, here's what I'm going to do." Other strategies: When your boss does not invite you to meetings or include you in decision making, speak up. "Tell her you have information that might prove to be valuable," suggests Lee Colby. If that approach doesn't work, find an intermediary who respects your work and can persuade the boss to listen to your views.


To understand your boss's inability to communicate, it's vital to examine his work style. "Some like hard data, logically arranged in writing," says Colby. "Others prefer face-to-face meetings. Find out what makes your boss tick - and speak in his or her language." Understanding your boss can make your job more bearable in a number of ways. For instance, try offering the boss two solutions to a problem - one that will make him happy, and one that will help you to reach your goals. Even the most difficult boss will usually allow you to solve problems in your own way - as long as he's convinced of your loyalty to him. No matter which type of bad boss you have, think twice before going over his head. Try forming a committee with your colleagues and approaching the boss all together. The difficult boss is usually unaware of the problem and often is eager to make amends. Before embarking on any course of action, engage in some self-analysis. Chances are, no matter how difficult your boss is, you are also contributing to the conflict. "Talk to people who know you both, and get some honest feedback," suggests Mardy Grothe. "If you can fix the ways in which you're contributing to the problem, you'll be more likely to get your boss to change." Even if you can't, there's a silver lining: the worst bosses often have the most to teach you. Bullies, for example, are frequently masters at reaching difficult goals. Perfectionists can often prod you into exceeding your own expectations. VOCABULARY sitcoms = situation comedies - challenging situation - high-strung - a standing desk - look up smth - - dress down smb at the top of one's lungs - , evidence of treason - excell (at work) - ( ) / roll with the punches - modus operandi - deal with - , (., ) ARE YOU AN ENTREPRENEUR? Here's how to tell if you've got what it takes. Victor Kiam Con-densedfrom "Going For It! How To Succeed As An Entrepreneur". When I was eight, the streetcar named Desire ran only four blocks from my home in New Orleans. But the Sound of eager Desire racing through the night did not inspire me - as it did Tennessee Williams - to spin a passionate taie. Instead, it invited the entrepreneurial muse to whisper the suggestions that guided me to the path l'm still traveling. That summer I noticed that people getting off the streetcar at the end of the day looked as if they would pass out if they had to go another step without a cool drink. I didn't realize it then, but I had responded to the first precept of an entrepreneur: I had recognized a need. My grandfather staked me to five dollars to buy 100 bottles of Coke. But before I could take my first step into the world of high finance, I had to set a prie for my goods.


With naive boldness, I settled on a markup of 100 percent! Business was brisk the first day and got better as the week progressed. You would have thought I was a pint-size John D. Rockefeller. My grandfather was of that opinion. So you can imagine his shock when, having sold my entire stock, I had only four dollars to show for my efforts. Few of my customers could afford to pay ten cents for a bottle of soda. Many couldn't even afford the nickel I needed to break even. It was so hot that I couldn't bear to let anyone go away empty-handed, so I trampled my bottom line by giving away my merchandise. My first business was a financial failure, but it sure built up a lot of good will. Entrepreneurs can be found everywhere - from fellows with outdoor lunch wagons to people within the corporate mainstream. Their common bond is that they are risk takers, willing to roll the dice with their money or put their reputations on the line in support of an idea or a project. They're following their own visions, and have decided to make the sacrifices necessary to achieve success. In 1968, after 18 years at Lever Brothers and Playtex, I left my job. I had long thought of doing something on my own, but it was talking with friends and attending a seminar on entrepreneurship that gave me the push I needed. I bought into the Benrus Corporation. Then in 1979 I acquired the Remington Company. Thirty-five years of experience has given me a good idea of the entrepreneur's profile. To find out if you have the right stuff, ask yourself: 1. Do I have enough self-confidence? Before the start of the 1985 baseball season, Pete Rose was asked how many times at bat it would take to get the 95 hits lie needed to break Cobb's record. Rose responded, "Ninety-five. I expect to get a hit every time up." You must believe in yourself. In a corporation, you want the people working under you to follow your lead; you want your superiors to respect your judgment. If you're running your own business, you want investors to place their money and trust behind you. You want your clients to catch your enthusiasm and to believe in your product or service. How can you inspire them if you don't believe in yourself? If you lack self-confidence, find some. Lack of confidence isn't a disease, it's a symptom. Self-perceived negatives can rob you of a healthy ego. Every six months, to deal with mine, I do a personal balance sheet. I make a list of my pluses and my minuses. For example, I was once a procrastinator. Confronting tins in black and white helped me to overcome it. I started making it a point to tackle distasteful jobs first. In a short time, procrastination disappeared from my list of minuses. Facing my negatives, I developed a more positive sense of myself. There is nothing on list I can't overcome if I make the effort. Try a balance sheet of your own. 2. Do I have confidence in venture? l've been asked, "When you make an investment, are you backing the idea or the people behind it?" Both. No entrepreneur is a miracle worker. You can labor 16 hours a day, seven days a week, but if your product is lousy, you've wasted your time. A friend of mine is a terrific shoe salesman. When management of the business changed, the quality of the stock dropped-off. A customer complained that the expensive shoe she was about to buy was too snug. offered to stretch it. "I gripped the shoe and pulled," he told me. "It tore in half. What had been a finely crafted shoe was now a piece of junk. I told the customer the truth, then I resigned." The lesson is simple: You can't sell anything you wouldn't buy. 3. Am I willing to make sacrifices? Body builders have a saying, "No pain, no gain." It should be the credo of every entrepreneur. Forget the clock. Nine-to-five doesn't


exist. Saturday became part of m regular work schedule as a young salesman. And when a snowstorm hit m region, it was an opportunity, not an obstacle. The idea that m rivals would be hiding from the elements gave me the impetus to push m product. It is amazing how receptive a buyer could be when the snow was waist-deep and I was the only friendly face he'd seen all day. If you're opening your own business, you'll lose the security of paycheck and the company benefits you take for granted. And there will be other changes in your life-style. You might not get home for dinner; relaxing weekends may be few and far between. I've even seen entrepreneurs whose marriages fell apart because they forgot about their spouses. That's one sacrifice I don't recommend! 4. Do I recognize opportunity? This is a key. Get used to examining all angles of a proposition. Ask, "How can this work for me?" I learned this the hard way. When I was with Playtex I met an inventer who showed me two pieces of nylon fabric and demonstrated how they adhered without hooks, zippers or snaps. All I could think about was the lack of applicability for our brassiere business. That product was Velcro. And not a day goes by when I don't see it used somewhere. 5. Am I decisive? You'd better be. As an entrepreneur, you're on your own. And you're going to encounter situations where time isn't on your side. At Lever Brothers we were launching a new product, an improved wrinkle cream. We planned a major promotion in Ohio stores, with a famous makeup man flying in from New York to apply the gook. But he suddenly became ill and couldn't come. What do I do now? I thought. So I spent the next 24 hours in a crash course in makeup, using a secretary as a guinea pig. Poor woman. I practiced until her face was raw. My moment of truth came with m first customer, the wife of a store president. 1 applied the product and she left without comment. Two days later she came back. Her husband had liked the results so much that she wanted more. Developing a quick, positive response to adversity had saved an important promotion campaign. 6. Am I willing to lead by example? You can't ask your troops to give their ail if your idea of a rough day is two hours in the office and six on the golf course. I never ask an employee to do something l'm not willing to do, and I work even harder than they do. By now you should have some idea if you have what it takes to, be an entrepreneur. So mention some of the rewards for your sacrifices. You'll find satisfaction in creating something out of nothing. You'll gain a positive sense of self. And of course, there are financial rewards. But it's not easy. Are You An Entrepreneur? QU. Do you have what it takes to be an Entrepreneur? to start your own business? ARE YOU AN ENTREPRENEUR? The crucial factor in a business ~ especially when it is just starting up - is the calibre of the person, or people, in charge. A new business is, essentially, as good as the person who is masterminding the strategy. Too often the role of entrepreneur is confused with that of a manager. A business requires the skills of both, but it is of paramount importance that management ability is not confused with entrepreneurial skills. More to the point: a manager should


not delude himself that he is an entrepreneur. This quiz is designed to help you gain some idea of the extent of your potential.

Reading Who would you rather work for? A. Discuss these questions. 1. Which would you prefer to work for? a) a male boss b) a female boss c) either - you don't have a preference 2 Do you think your response to question 1 is a typical one? B. Read the first paragraph only of both articles. What is the main point made by the writer in each case? 172

C. Work in pairs. One of you reads article A. The other reads article B. Summarise each paragraph in a single sentence of no more than 15 words. Then give an oral summary of the whole article to your partner. Article A WHO WOULD YOU RATHER WORK FOR? Women are more efficient and trustworthy, have a better understanding of their workforce and are more generous with their praise. In short they make the best managers, and if men are to keep up they will have to start learning from their female counterparts, a report claims today. The survey of 1,000 male and female middle and senior managers from across the UK is an indictment of the ability of men to function as leaders in the modern workplace. A majority of those questioned believed women had a more modern outlook on their profession and were more open minded and considerate. By way of contrast, a similar number believe male managers are egocentric and more likely to steal credit for work done by others. Management Today magazine, which conducted the research, said that after years of having to adopt a masculine identity and hide their emotions and natural behaviour in the workplace, women have become role models for managers. The findings tally with a survey of female bosses carried out in the US. A five year study of 2,500 managers from 450 firms found that many male bosses were rated by their staff of both sexes to be self-obsessed and autocratic. Women on the other hand leave men in the starting blocks when it comes to teamwork and communicating with staff. In Britain more than 61% of those surveyed said men did not make better bosses than women. Female managers use time more effectively, with many of those surveyed commenting that juggling commitments is a familiar practice for women with a home and a family. Female managers also appear to make good financial sense for penny-pinching companies: most people, of either sex, would rather ask for a rise from a man. "If men want to be successful at work they must behave more like women," said the magazine's editor, Rufus Olins. "Businesses need to wake up to the fact that so-called feminine skills are vital for attracting and keeping the right people. In the past women who aspired to management were encouraged to be more manly. It looks now as if the boot is on the other foot."
From the Guardian

WHICH BOSSES ARE BEST? How do you like your boss? Sympathetic, empowering and not too busy, probably. They will be aware of the pressures of your job, but delegate responsibility where appropriate. They will be interested in your career development. Oh, and, preferably, they will be male. In a survey for Royal Mail special delivery, a quarter of secretaries polled expressed a preference for a male boss. Only 7% said they would prefer a woman. The future of management may be female, but Ms. High-Flier, it seems, can expect little support from her secretary. One should not, of course, assume that all secretaries are female, but women still make up the overwhelming majority. So it makes uncomfortable reading for those who like to believe that a soft and cuddly sisterhood exists in the previously macho office environment, where women look out for their own. The findings also raise questions


about neat predictions of a feminized future for management, where 'womanly' traits such as listening skills, flexibility and a more empathetic manner will become normal office currency. Business psychologist John Nicholson is surprised by the survey's findings, asserting that 'the qualities valued today in a successful boss are feminine, not masculine'. He is emphatic that women make better bosses. "They listen more, are less statusconscious, conduct crisper meetings, are much more effective negotiators and display greater flexibility." They are also considerably more common than they used to be. According to information group Experian, women are no longer scarce in the boardroom - they occupy a third of the seats round the conference table. Women directors are still relatively uncommon in older age groups, but among young directors the proportion is growing. Anecdotal evidence suggests that a reluctance to work for a woman may be more a question of management style than substance. "It's just women bosses' attitude," says Martha, a PA for 25 years who has worked predominantly for women, including a highprofile politician. "It's something women have that men don't. when they are critical they are much more personal, whereas men sail through not taking a blind bit of notice." Sonia Neill, a former secretary at Marks and Spencer, has experienced power struggles between women even where there was a significant disparity in status. "Women either find it awkward to give you work or they try to assert themselves by giving you really menial tasks. Men never do that."
From the Guardian

D. Find words in the articles with the following meanings. Article A Article B 1. people with the same jobs as each 6. aspects of a person's character (paragraph 1) (paragraph 3) 2. a clear sign that a system isn't 7. absolutely convinced (paragraph 4) working (paragraph 2) 3. thinking only about yourself 8. based on stories about personal (paragraph 3) experience (paragraph 6) 4. giving orders without asking others 9. a difference between things for their opinions (paragraph 5) (paragraph 7) 5. wanted to achieve an important goal 10. behave in a determined way (paragraph (paragraph 8) 7) E. From the two texts, find as many characteristics as possible that are attributed to female managers. F. Which ideas expressed in the two articles do you agree with? Do you find any of the ideas surprising?

STYLES OF EXECUTION 1. Before you read the text discuss these questions. 1. Based on your experience or what you may have read, how do you think British and German managers would differ in their approach to management? 2. Do they have different career systems and different ways of doing business?


STYLES OF EXECUTION Christopher Lorenz looks at the contrasting attitudes between German and British managers A study comparing British and German approaches to management has revealed the deep gulf which separates managerial behaviour in many German and British companies. The gap is so fundamental, especially among middle managers, that it can pose severe problems for companies from the two countries which either merge or collaborate. The findings are from a study called Managing in Britain and Germany carried out by a team of German and British academics from Mannheim University and Templeton College, Oxford. The differences are shown most clearly in the contrasting attitudes of many Germans and Britons to managerial expertise and authority, according to the academics. This schism results, in turn, from the very different levels of qualification, and sorts of career paths, which are typical in the two countries. German managers both top and middle - consider technical skill to be the most important aspect of their jobs, according to the study. It adds that German managers consider they earn their authority with colleagues and subordinates from this expert knowledge rather than from their position in the organisational hierarchy. In sharp contrast, British middle managers see themselves as executives first and technicians second. As a result, German middle managers may find that the only people within their British partner companies who are capable of helping them solve routine problems are technical specialists who do not have management rank. Such an approach is bound to raise status problems in due course. Other practical results of these differences include a greater tendency of British middle managers to regard the design of their departments as their own responsibility, and to reorganise them more frequently than happens in Germany. German middle managers can have major problems in dealing with this, the academics point out, since British middle managers also change their jobs more often. As a result, UK organisations often undergo more or less constant change. Of the thirty British middle managers in the study, thirteen had held their current job for less than two years, compared with only three in Germany. Many of the Britons had also moved between unrelated departments or functional areas, for example from marketing to human resources. In contrast, all but one of the Germans had stayed in the same functional area. Twenty of them had occupied their current positions for five years or more, compared with only five of the Britons. The researchers almost certainly exaggerate the strengths of the German pattern; its very stability helps to create the rigid attitudes which stop many German companies from adjusting to external change. But the authors of the report are correct about the drawbacks of the more unstable and less technically oriented British pattern. And they are right in concluding that the two countries do not merely have different career systems but also, in effect, different ways of doing business.
Financial Times

2. Mark these statements Y(true) or F(false) according to the information in the text. 1. Mergers between British and German companies rarely succeed. 2. The study mainly concentrated on middle managers.


3. 4. 5. 6. 7.

Both German and British managers consider technical skills to be very important. German managers prefer working with technicians in British companies. British managers are very concerned about their executive status. There is much more change in British companies than in German companies. German companies are strong and successful because of the way they are organized.

3. Discuss these questions. 1. In your opinion does the article suggest that one country's approach to management and organization is better than the other's? 2. Pick out some extracts from the article which make positive or negative comments about British or German approaches.

HOW DOES THE COMMUNICATION PROCESS WORK? Communication can be thought of as a process or flow. Communication problems occur when there are deviations or blockages in that flow. Before communication can take place, a purpose, expressed as a message to be conveyed, is needed. It passes between a source (the sender) and a receiver. The message is encoded (converted to symbolic form) and is passed by way of some medium (channel) to the receiver, who retranslates (decodes) the message initiated by the sender. The result is a transference of meaning from one person to another.3 Exhibit 12-1 depicts the communication process. This model is made up of seven parts: (1) the communication source, (2) encoding, (3) the message, (4) the channel, (5) decoding, (6) the receiver, and (7) feedback. The source initiates a message by encoding a thought. Four conditions affect the encoded message: skill, attitudes, knowledge, and the social-cultural system. Our message in our communication to you is dependent upon our writing skills; if the authors of textbooks are without the requisite writing skills, their messages will not reach students in the form desired. One's total communicative success includes speaking, reading, listening, and reasoning skills as well. As we know, our attitudes influence our behavior. We hold predisposed ideas on numerous topics, and our communications are affected by these attitudes. Furthermore, we are restricted in our communicative activity by the extent of our knowledge of the particular topic. We cannot communicate what we don't know, and should our knowledge be too extensive, it's possible that our receiver will not understand our message. Clearly, the amount of knowledge the source holds about his or her subject will affect the message he or she seeks to transfer. And, finally, just as attitudes influence our behavior, so does our position in the social-cultural system in which we exist. Your beliefs and values, all part of your culture, act to influence you as a communicative source.

communication process The transferring and understanding of meaning encoding The conversion of a message into some symbolic form


The message is the actual physical product from the source. "When we speak, the speech is the message. When we write, the writing is the message. When we paint, the picture is the message. When we gesture, the movements of our arms, the expressions on our face are the message."4 Our message is affected by the code or group of symbols we use to transfer meaning, the content of the message itself, and the decisions that we make in selecting and arranging both codes and content. The channel is the medium through which the message travels. It is selected by the source, who must determine which channel is formal and which one is informal. Formal channels are established by the organization and transmit messages that pertain to the job-related activities of members. They traditionally follow the authority network within the organization. Other forms of messages such as personal or social, follow the informal channels in the organization.

message A purpose to be conveyed

channel The medium by which a message travels

The receiver is the person to whom the message is directed. However, before the message can be received, the symbols in it must be translated into a form that can be understood by the receiver. This is the decoding of the message. Just as the encoder was limited by his or her skills, attitudes, knowledge, and social-cultural system, the receiver is equally restricted. Accordingly, the source must be skillful in writing or speaking; the receiver must be skillful in reading or listening, and both must be able to reason. One's knowledge, attitudes, and cultural background influence one's ability to receive, just as they do the ability to send. The final link in the communication process is a feedback loop. "If a communication source decodes the message that he encodes, if the message is put back into his system, we have feedback."5 Feedback is the check on how successful we have been in transferring our messages as originally intended. It determines whether understanding has been achieved. ARE WRITTEN COMMUNICATIONS MORE EFFECTIVE

decoding A receiver's translation of a sender's message


THAN VERBAL ONES? Written communications include memos, letters, e-mail, organizational periodicals, bulletin boards, or any other device that transmits written words or symbols. Why would a sender choose to use written communications? Because they are tangible, verifiable, and more permanent than the oral variety. Typically, both sender and receiver have a record of the communication. The message can be stored for an indefinite period of time. If there are questions about the content of the message, it is physically available for later reference. This feature is particularly important for complex or lengthy communications. For example, the marketing plan for a new product is likely to contain a number of tasks spread out over several months. By putting it in writing, those who have to initiate the plan can readily refer to the document over the life of the plan. A final benefit of written communication comes from the process itself. Except in rare instances, such as when presenting a formal speech, more care is taken with the written word than with the oral word. Having to put something in writing forces a person to think more carefully about what he or she wants to convey. Therefore, written communications are more likely to be well thought out, logical, and clear.

The main purpose of communication is to get a message from a sender to a receiver the way the sender intended it to be understood. International symbols transfer meaning and understanding. The red circle, for example, means "No," such as no drinking, no dogs, no biking, or no skating. Why we are poor listeners? Why, then, are we poor listeners? The following factors may give us some indication: We perceive listening to be passive and find concentration difficult. The average person speaks at a rate of 130 words per minute and thinks at a rate of 500 words per minute. In consequence, our minds jump ahead of what is being said. We listen selectively and shut out anything we regard as unimportant. Lack of interest in the subject of conversation lends itself to 'mental walkabout'. The listener is tense with emotion, which impairs the ability to listen. The listener's mind is full of concerns which cause a block.


Physical noises intrude and detract from the speaker, e.g. music, television, other people's conversations, traffic noises. The listener is mentally preparing what he is going to say rather than concentrating on what is being said. The listener has some hearing impairment or is unwell. The listener uses a different vocabulary to the speaker and has a different understanding and perception. The listener has preconceived ideas which he or she is desperate to retain. How can we improve our listening? We can do this in the following ways: (a) By recognising that listening is an active, not a passive, activity. (b) By physically attending, which involves: facing the speaker squarely good eye contact open posture leaning towards the speaker being relatively relaxed. (c) By mentally clearing the mind of our own emotional agenda and personal concerns. (d) By ensuring the environment is conducive to listening and free from distracting noises and interruptions. (e) By psychologically attending, which means concentrating on three things: what is being said how it is being said what is not being said. (f) By reflecting (g) By summarising (h) By asking questions. How do we use non-verbal communication?

Most of us consciously use non-verbal communication to support our verbal messages. As a speaker we use NVCs to: emphasise meanings (gestures, facial expressions, etc.) encourage the listener to listen (eye contact, head and body movements, etc.) signal we are about to stop talking (raised eyebrows, head movements, etc.) We also use NVCs consciously as a listener to: encourage the speaker to talk (nods, eye contact, tilting the head to one side, etc) break into the conversation without actually interrupting (leaning forward, making a hand gesture, taking a deep breath through the mouth as if about to start talking, etc.) We also observe the NVCs of the speaker to 'read' the underlying message, feelings, and so on. Whilst much of the non-verbal behaviour we exhibit is done consciously some is spontaneous and unconscious. Perhaps these are the most telling 'signs' to watch for as an interviewer. Check whether the NVCs are congruent with the


words that are being spoken - if not, probe for more information. An extreme example would be someone saying 'Yes' while shaking their head! Conflicting behaviours of this type happen more often than you would imagine. Sometimes people use NVCs in place of speaking. For instance, you may have observed a reticent person in a committee meeting who, when asked for his/her views, 'pulls a face' in preference to actually talking. These signals provide an ideal opportunity to draw a person into the conversation. It would be foolish to assume that these 'signals' could be read accurately every time, so do ask for clarification: 'What do you mean by that', or, 'John, are you not happy with that or, 'What's the problem?-' Different NVCs communicate different messages. Below are a number of common behaviours. The column on the left encourages openness, trust and a relaxed but purposeful interaction; the column on the right encourages defensiveness, mistrust, anxiety and negative interactions. Be aware of their effects (particularly if you exhibit these) on others, and adopt the appropriate behaviours. Do: Have an open posture Smile Maintain eye contact; look at the person Sit forward Display a relaxed appearance Display open palms Stay attentive and relatively still Have legs uncrossed Don't: Cross your arms Frown or scowl Look away or stare at the person Slouch in your chair; hide behind your desk; place your feet on desk or table Appear tense or nervous Clench your fists; have your hands in your pockets; have your hands hidden; point with one finger Chew your pencil; fidget Cross your legs Note the importance of the eyes and the hands in the messages we convey. READING Communication problems A. Recent trends in business have been towards larger and larger organisations. This has many advantages but can also present challenges for effective communication within an organisation. For what reasons can communication sometimes break down in targer organisations?

HARD SELL AROUND THE PHOTOCOPIER Sociologists have long recognised that businesses of less than 200 individuals can operate through the free flow of information among the members. Once their size exceeds this figure, however, some kind of hierarchical structure or line management system is necessary to prevent total chaos resulting from failures of communication. Imposing structures of this kind has its costs: information can only flow along certain channels because only certain individuals contact each other regularly; moreover, the lack of personalised contacts means that individuals lack that sense of personal commitment that makes the world of small groups go round. Favours will only be done when there is a clear quid pro quo, an immediate return to the giver, rather than being a matter of communal obligation. Large organisations are less flexible.


One solution to this problem would, of course, be to structure large organisations into smaller units of a size that can act as a cohesive group. B allowing these groups to build reciprocal alliances with each other, larger organisations can be built up. However, merely having groups of, say, 150 will never of itself be a panacea to the problems of the organisation. Something else is needed; the people involved must be able to build direct personal relationships. To allow free flow of information, they have to be able to interact in a casual way. Maintaining too formal a structure of relationships inevitably inhibits the way a system works. The importance of this was drawn to my attention a couple of years ago by a TV producer. The production unit for which she worked produced all the educational output for a particular TV station. Whether by chance or by design, it so happened that there were almost exactly 150 people in the unit. The whole process worked very smoothly as an organisation for many years until they were moved into purpose-built accommodation. Then, for no apparent reason, everything started to fall apart. The work seemed to be more difficult to do, not to say less satisfying. It was some time before they worked out what the problem was. It turned out that, when the architects were designing the new building, they decided that the coffee room where everyone ate their sandwiches at lunch times was an unnecessary luxury and so dispensed with it. The logic seemed to be that if people were encouraged to eat their sandwiches at their desks, then they were more likely to get on with their work and less likely to idle time away. And with that, they inadvertently destroyed the intimate social networks that empowered the whole organisation. What had apparently been happening was that, as people gathered informally over their sandwiches in the coffee room, useful snippets of information were casually being exchanged. Someone had a problem they could not solve, and began to discuss it over lunch with a friend from another section. The friend knew just the person to ask. Or someone overhearing the conversation would have a suggestion, or would go away and happen to bump into someone who knew the answer a day or so later; a quick phone call and the problem was resolved. Or a casual comment sparked an idea for a new programme. It was these kinds of chance encounter in the coffee room, idle chatter around the photocopier, that made the difference between a successful organisation and a less successful one. From Grooming, Gossip and the Evolution of language. by Robin Dunbar


Choosing the right candidate A. Discuss this question: Do people change during their working lives? If so, How? B. Now read the article. What does it say about the question above? Find the answer as quickly as you can.


By Adrian Furnham

Investing thousands of pounds in the recruitment and training of each new graduate recruit may be just the beginning. Choosing the wrong candidate may leave an organization paying for years to come. Few companies will have escaped all of the following failures: people who panic at the first sign of stress, those with long, impressive qualifications who seem incapable of learning, the unstable persons later discovered to be thief or worse. Less dramatic, but just as much a problem is the person who simply does not come up to expectations, who never becomes a high- flyer or even steady performer. The first point to bear in mind at the recruitment stage is that people don't change. Intelligence levels decline modestly, but change little over their working life. The same is true of abilities, such as learning languages and handling numbers. Most people like to think that personality can change, particularly the more negative features such as anxiety, low esteem, impulsiveness or a lack of emotional warmth. But data collected over 50 years gives a clear message: still stable after all these years. Extroverts become slightly less extroverted, the acutely shy appear a little less so, but the fundamentals remain much the same. Personal crises can affect the way we cope with things: we might take up or drop drink, drugs, religion or relaxation techniques, which can have pretty dramatic effects. Skills can be improved, and new ones introduced, but at rather different rates. People can be groomed for a job. Just as politicians are carefully repackaged through dress, hairstyle and speech specialists, so people can be sent on training courses, diplomas or experimental weekends. But there is a cost to all this which may be more than price of the course. Better to select for what you actually see rather than attempt to change it.
From the Financial Times

B. 1. 2. 3.

Read the article again and answer these questions. What types of failures do companies experience, according to the article? What does a fine future behind them mean? What advice does the article give to-managers?

D. In another part of the article (not included here), the writer suggests that selectors should look for three qualities: a) intelligence and ability b) emotional stability c) conscientiousness. 1 Do you agree? Explain your opinion. 2 Complete the table with the adjectives below. What other words can you add?






easy- going

hard-working moody

neurotic punctual 1. Intelligence and ability bright

quickreliable responsible sharp slow tempered 2. Emotional stability 3. Conscientiousness calm reliable

Should employees appear on company accounts? HUMAN CAPITAL

Gwen Coates discusses the difficulties involved in valuing a workforce

An overused phrase often heard from senior executives is, 'Our workers are our greatest asset'. In strictly financial terms, this is not true. With the exception of football players, employees are only recorded in annual report accounts as 'staff costs' -- a lump sum figure that, from a shareholder's point of view, does little other than reduce the profit figure. Despite this strict financial view of human capital assets, few companies can now realistically be valued only in terms of their physical assets (factories, machines, etc.), and in most businesses, employees are a major influence on whether any profit is made. The experience, skills, knowledge and commitment of the workforce drive the business. So the overused phrase mentioned above is in fact true for most companies. Yet annual reports effectively ignore a company 's most important asset. Annual reports are the principal guide to a company's value and performance, and are also subject to quite expensive and extensive scrutiny by accountancy firms. This omission of a proper valuation of human resources in business is being considered by the UK's largest accountancy body, the Institute-of Chartered Accountants. In June 2000, it published a report entitled Human Capital and Corporate Reputation: Setting the Boardroom Agenda, in which it tries to determine how human capital should be measured in other words, how a monetary value could be put on a "company's workforce. The Institute's starting point is that, although measuring 'intangibles' like human capital is a break with tradition, 'people are the key drivers of profitability'. Geoff Armstrong, the director general of the Institute of Personnel Development, supports the view that people are the key drivers of profitability. He points out that with computer-based technology, competing companies can increasingly copy each other, and that it is people who make a company stand out from the crowd. Because you cannot write down in a manual all the skills, experience and knowledge of key employees, nor can you do a stock-take or nail them down, organisations can become very vulnerable. If people or groups of people are enticed away to do more interesting, exciting or better paid activities, organisations can be left bereft of critical skills and know-how. The idea of valuing human capital is not entirely new. In 1998, the Accounting Standards Board, the body responsible for setting accounting rules, allowed football clubs to put sums paid for players on their balance sheets and write off the costs over the length of their contracts. However, this method of measuring human capital is likely to remain the exclusive preserve of top footballers, both because of the sums paid between clubs when they move, and the rigidity of their contracts compared to other professions. In most professions, it is a simple matter to leave an employer, and this makes it very difficult to attribute any realistic monetary value to an employee in a normal situation. The Accounting Standards Board agrees the need for reform, but dismisses the idea of attempting to attribute some form of monetary value to a company's workforce.


Chairman Sir David Tweedie states: 'What we are really trying to do is to decide what the future cash flows of the company are likely to be. To do this, there should be some form of measuring the 'drivers of value' in a company, which would allow comparison from year to year. Because of these difficulties, the Institute of Chartered Accountants foresees a special section in a company's annual report that would attempt to assess and measure its human capital from year to year. This might involve some sort of qualitative technique for measuring issues such as training, retention, staff .satisfaction and working conditions not simply a record of how much an employer has spent on staff training, etc. The Institute's report includes evidence from a number of major players in the business world. For example, John Coombe, the finance director of the chemical giant GlaxoWellcome, comments: The most recent accounts of my organisation show net assets of just over 3bn, yet its market value is many times that amount.' He goes on to suggest that the major elements of this 'value gap' are unrecognised assets such as human and 'reputational' capital, and that some way of bridging the gap between balance sheet net assets and stock market value would be an extremely useful expansion of shareholder information: 'Simply identifying unrecorded intangible assets and indicating their value would be a major step in the right direction.' Recording the value of a firm's human capital more fully would benefit both a company's staff and its investors. By having to describe its human capital, a company would be forced to focus on staff welfare, performance and contentment. For investors, such a move would at least give the ability to ask better questions about how companies are producing value from their 'greatest asset.'
Gwen Coates is Chair of Examiners for AQA Business Studies and an editor of Business Review.

TEXT 1 Before you read, look at the title and subtitle. 1 Which company is the article about? 2 What does the company produce? 3 What area of the company is the article about? 2 Scan the text quickly for information about llford and complete the following summary. llford Ltd. is located in 1and has a workforce of 2. The company, which has (wo sister 3. in Europe, is part of 4 .. which was bought in 5 by 6 . . llford manufactures 7. .The company's head of human resources is called8. and it is his job to oversee9., the company's new programme for 10..work practices, pay and conditions. 3 Look again at the title of the article, Why is it a clever way of introducing the text? 4 Now read the text and summarise the main points under the following headings. the thinking behind Impact why Impact was necessary


how Impact was developed Impact's main features the timetable for change the impact of Impact ILFORD PUTS PEOPLE INTO SHARP FOCUS

Fiona Thompson explains how the photographic materials company developed its personnel blueprint

Management is determined that nobody should be kept in the dark about changes which are being introduced at Ilford 's plant in Mobberley, Cheshire. Impact, Ilford's programme for a comprehensive restructuring of work practices, pay and conditions, is now under way. And the company's aim - that none of Ilford Ltd's 1,400 employees should be left in the dark about the programme - has meant an exhaustive series of consultative meetings. The process is being overseen by the company's head of human resources, 'Frank Sharp. The changes in Impact echo those in other companies which have adopted the human resources title alongside an attempt to achieve fundamental changes in employment culture. These companies often want to move away from traditions of industrial relations conflict, and integrate the management of people into their strategy. According to Sharp, the impetus for setting up Impact was an acknowledgement by the board a few years ago that the company was in a mature industry; that a substantial effort had been put into engineering, science and marketing in the previous 10 to 15 years; 'and we could not see how the business would further prosper and become more profitable unless we tackled the people side'. It was a radical move for Ilford which, until then, ' had not regarded personnel as contributing in any way to the strategic direction of the business'. Ilford, number one in sales in the world monochrome market, makes and sells photographic materials, chemicals and equipment It is part of Ilford Group, which has two other manufacturing plants, in France and Switzerland, and was bought by the large US paper company, International Paper, in 1989. The UK company traditionally operated along inflexible lines, with strict demarcation between the different unions and rigidly enforced differentials based of 43 grading bands. Impact is nothing less than a complete overhaul of how Ilford's employees work, their pay and conditions. Impacts three aims are: To implement organisational change involving a move away from detailed job descriptions and a lot of different jobs to a number of core jobs with many fewer grades; To devise specific training and development plans for each employee; and To develop an improved pay and reward policy. The consultative process to devise a framework for a reward policy was launched last April in workshops attended by all the shop stewards and departmental managers. The managers then held a series of team meetings with never more than 15 employees at a time, to encourage maximum feedback. We started with a blank sheet of paper and said 'What would you like? ' And we literally got everything from turkeys at Christmas to 'deunionise' says Sharp. By the autumn, a nine-point framework was devised. Key elements of the reward policy, aimed at getting a simpler, fewer grades ,and the introduction of job evaluation, performance rewards and personal development discussions. The new grade structure will reduce the present 43 grades to between six and 12. Each employees job will be put into one of the new grades using a method of job evaluation- almost certainly the work profiling system of consultants Savile &


Holdsworth involving the employee. Each grade will have a negotiated base rate of pay to be determined by the market rate and Ilfords performance. The banding for each grade would be very wide to allow for performance payments agreed once a year between each employee and her/his boss. Getting to this stage has been a painstakingly slow business. Last April, it was intended that the new reward policy would be implemented on January 1, the normal date for pay increases. But management had been 'too optimistic', Sharp acknowledges. 'Hindsight is a marvellous thing. In reality, to use a racing analogy, it was a 10-furlong race and the finishing point was to get everybody on board, understanding what the reward process was about. But while some departments started the race around the eighth furlong, others hadn't even saddled up the horse months later.' But he does not see the delay as a failure. 'We had never gone through consultation before. The lesson we had learned is that if you are going to involve people, you must be prepared to accommodate their views and satisfy them before you move on, otherwise you risk failure." The organisational change at Ilford - involving the move away from a lot of different jobs to a number of core jobs - is a third complete, says Sharp. The change was sorely needed, particularly as Ilford has had the same structure in place for many years, despite having decreased from a multi-site organisation with 7,000 to 8,000 employees in the early to mid-1970s to a one-plant operation with 1,400 employees now. In the scientific products department, for example, after detailed management-workforce discussions on what its new role should be and who should accept what responsibilities at what level, the consensus was that the department would actually function more effectively without supervisors. Consequently the staff have taken on more responsibility and have been given the tools to carry out certain new tasks, like statistical process control. The organisational changes, white providing much greater job satisfaction for some, inevitably leave some less happy as well. 'If a new role demanded more peoplemanagement skills, we didn't just take someone because they'd been there 20 years and done a good job. We tried to measure objectively through discussion and tests who had the 'best' skills.' Some got bigger jobs, some moved sideways and others transferred to different roles elsewhere in the company. In a small number of instances, this has meant salary decreases. Not surprisingly, there was union resistance. MSF, the technical and white-collar union representing the managers and scientists, accepted that some of its members' positions would change but wanted them to maintain their present grades, performance rates and income. "We couldn't accept this as it wouldn't be seen as equitable by other people doing a bigger role,' says Sharp. There was no question that the Impact proposals had to happen, according to Sharp. 'In the 1980s life for manufacturing companies became much more competitive. It will become even more so in this decade. We have got to ensure that the company can respond quickly and effectively.'
The Financial Times


By Kelly Pate Dwyer

Every workplace has its share of good guys and bad, solo artists and team players. To get ahead or even just survive you need to know them all: the good eggs who can become your allies, and the bad apples to avoid (or occasionally placate). Heres a handy guide to the 10 most common types of office politicians, with tips on how to manage them. Office Politicos: A Field Guide






Text 2 DO YOU WORK WITH PROBLEM PEOPLE? You know the type - the boss who is always moving the goalposts, uncooperative colleagues, undelungs who fail to do things as well as you do. If you are plagued by these or other problem types, perhaps you think the situation is beyond your control. If so, think again. A good starting point is to recognize that behaviour breeds behaviour, which is one of those great truths that hasn't really dawned on a lot of people. Through your behaviour you may, quite unintentionally, be triggering a behaviour pattern in someone else that is for you a problem. One of the commoner problem types is the authoritarian. Authoritarians talk too much and don't listen enough. They assume that people are basically lazy, can't be trusted and must not be allowed to make their own decisions because they would get it wrong. Authoritarians expect unswerving obedience and for someone with ideas and initiative it can be very frustrating. Doing nothing is not a good idea - unless it suits you to have someone taking all the decisions and telling you what to do. You can alter your perception of the problem by recognizing that authoritarian behavior indicates not strength but rather feelings of inadequacy. But there is little point in trying to persuade authoritarians to change, so try to modify the situation. Nobody is authoritarian all the time: sometimes they are extremely bossy, sometimes less so. The key lies in understanding what sort of situation triggers their authoritarian behaviour. It could be the risk of chaos, which authoritarians loathe. Or it might be a threat to or violation of a non-negotiable matter, or insubordination by a junior. You will reduce the problem if you are compliant on the issues that are sacrosanct and non-negotiable, but otherwise assertive. A useful approach is to assume that it's all right to do things until told otherwise. This will give you some space for initiatives, and you can win their trust slowly - but make sure that any initiatives you take do not jeopardize the orderliness which the authoritarian holds so dear. The defensive person is another problem type. Defensive people do not accept responsibility for their actions, and therefore never learn from their experience. Nothing is ever their fault; there is always a seemingly plausible explanation. The best way to tackle a defensive person is to choose a time when he has made a mistake and invite him to join you in analysing why it happened and what should be done to avoid it happening again. A softly-softly approach is essential to stop the defensive barriers being raised. So start by asking for their advice, initially about what you should do differently, and then slowly turning it round to establish what they are going to do differently in future. This will provoke more defensiveness, but you must not let them off the hook. Just keep repeating your challenge and eventually they will accept responsibility for their part in the mistake. When they do, ease up on them. In this way they will learn that defensiveness doesn't pay. PAN-EUROPEAN TEAMWORK Slowly they entered the room in ones .and twos, anxiously looking for familiar 'faces. Some took refuge in intense conversation to avoid the searching eyes of strangers. Others were preoccupied rearranging papers. The Scandinavians were the first to arrive, conspicuous in their plaid jackets and open-necked shirts. Exactly on the stroke of nine o'clock the Germans entered, debating with their Austrian colleagues. The US participants followed, introducing themselves to everyone they passed. Then two hesitant figures in dark, pinstripe suits filled the doorway, their formal


handshakes unmistakably betraying them as the British representatives. The seats around the circle of tables were almost filled and the buzz of polite conversation began falling off when the Italian participants, dressed in fine tailored suits, were the last to arrive. The group of managing and marketing directors from nine national subsidiaries of a large international company had gathered in a European capital city for a three-day meeting with a dual purpose. Their primary task was to draw up a pan-European marketing strategy to exploit the EC's single market. The meeting was also seen as an opportunity for the executives to learn about working within a multicultural team, and to recognise how it differed from their team-working back home. I was one of two consultants assigned to facilitate the process and crystallise the learning. As with many multicultural groups, the first difficulties emerged over language. The meeting was conducted in English, but not all the participants were equally fluent or confident about expressing themselves. Not surprisingly, native English speakers dominated the early discussions, until the facilitator asked others for their ideas. This intervention, however, only exposed another cultural trait that impeded progress. Impatient with the time it took others to formulate their views, British and US participants frequently interrupted the long periods of silent contemplation with even more suggestions of their own. To construct coherent arguments in a non-native language takes time and requires concentration. The use of only one language was the most obvious barrier to multicultural teamworking. As the first working session progressed, however, the comments made and ideas proposed revealed how unconscious cultural biases and corporate myths dominated the participants' thinking. French executives argued for their proposal, since it was manifestly the most logical. No, said the Germans, their approach should be endorsed because it was technically superior and had a proven track record. No one gave serious consideration to the Danish proposal. The ideas produced by the Italians were seen as elegant and seductive, but impractical. The members of this multicultural team, brought together for the first time, reacted like all human beings. In the absence of more reliable information, they made liberal use of preconceived stereotypes about the nations they did not know. Or where they had some experience, they generalised by using one past incident to predict the behaviour of that nationality. Like 'groupthink', where all members of a team home in on one powerfully argued but possibly flawed idea, this multicultural team was taking refuge in simplistic stereotypes and over-generalisations. To address this obstacle to effective teamworking. time was taken to learn about the characteristic behaviour of the nations present. Each national group had to act as informants on their own culture, and heard how their cultural behaviour influenced the perceptions and attitudes of others. This cathartic activity produced much laughter. The linear, time-conscious Northern Europeans discovered the mysteries of their Latin colleagues' flexible approach to time and capacity to deal with several projects simultaneously. The Anglo-Saxons learned about alternatives to adversarial relationships in industry from the consensusorientated Scandinavian managers. Each group explored the emphasis it placed upon personal relationships in getting things done, cultural preferences for long-term outcomes and the importance attached to being liked, a theme that proved sensitive for many of the executives. Many significant messages and difficult observations were delivered in jest and


mimicry throughout the remainder of the meeting. But all the participants acknowledged the pain of learning, and the importance of more accurate perceptions in putting together a draft marketing strategy. Yes, they agreed, it might need more work, but their future efforts would be less likely to be side-tracked by superficial differences of culture.
International Management

INCENTIVE SYSTEMS Incentives refer to the devices used to reward appropriate employee behavior. Many employees receive incentives in the form of annual bonus pay. Incentives are usually closely tied to the performance metrics used for output controls. For example, setting targets linked to profitability might be used to measure the performance of a subunit, such as a global product division. To create positive incentives for employees to work hard to exceed those targets, they may be given a share of any profits above those targeted. If a subunit has set a goal of attaining a 15 percent return on investment and it actually attains a 20 percent return, unit employees may be given a share in the profits generated in excess of the 15 percent target in the form of bonus pay. For now, however, several important points need to be made. First, the type of incentive used often varies depending on the employees and their tasks. Incentives for employees working on the factory floor may be very different from the incentives used for senior managers. The incentives used must be matched to the type of work being performed. The employees on the factory floor of a manufacturing plant may be broken into teams of 20 to 30 individuals, and they may have their bonus pay tied to the ability of their team to hit or exceed targets for output and product quality. In contrast, the senior managers of the plant may be rewarded according to metrics linked to the output of the entire operation. The basic principle is to make sure the incentive scheme for an individual employee is linked to an output target that he or she has some control over and can influence. The individual employees on the factory floor may not be able to exercise much influence over the performance of the entire operation, but they can influence the performance of their team, so incentive pay is tied to output at this level. Second, the successful execution of strategy in the multinational firm often requires significant cooperation between managers in different subunits. For example, as noted earlier, some multinational firms operate with matrix structures where a country subsidiary might be responsible for marketing and sales in a nation, while a global product division might be responsible for manufacturing and product development. The managers of these different units need to cooperate closely with each other if the firm is to be successful. One way of encouraging the managers to cooperate is to link incentives to performance at a higher level in the organization. Thus, the senior managers of the country subsidiaries and global product divisions might be rewarded according to the profitability of the entire firm. The thinking here is that boosting the profitability of the entire firm requires managers in the country subsidiaries and product divisions to cooperate with each other on strategy implementation, and linking incentive systems to the next level up in the hierarchy encourages this. Most firms use a formula for incentives that links a portion of incentive pay to the performance of the subunit in which a manager or employee works and a portion to the performance of the entire firm, or some other higher-level organizational unit. The goal is to encourage employees to improve the efficiency of their unit and to cooperate with other units in the organization. Third, the incentive systems used within a multinational enterprise often have to


be adjusted to account for national differences in institutions and culture. Incentive systems that work in the United States might not work, or even be allowed, in other countries. For example, Lincoln Electric, a leader in the manufacture of arc welding equipment, has used an incentive system for its employees based on piecework rates in its American factories (under a piecework system, employees are paid according to the amount they produce). While this system has worked very well in the United States, Lincoln has found that the system is difficult to introduce in other countries. In some countries, such as Germany, piecework systems are illegal, while in others the prevailing national culture is antagonistic to a system where performance is so closely tied to individual effort. For further details, see the accompanying Management Focus. Finally, it is important for managers to recognize that incentive systems can have unintended consequences. Managers need to carefully think through exactly what behavior certain incentives encourage. For example, if employees in a factory are rewarded solely on the basis of how many units of output they produce, with no attention paid to the quality of that output, they may produce as many units as possible to boost their incentive pay, but the qualify of those units may he poor. Organizational Culture and Incentives at Lincoln Electric MANAGEMENT FOCUS Lincoln Electric is one of the leading companies in the global market for arc welding equipment. Lincoln's success has been based on extremely high levels of employee productivity. The company attributes its productivity to a strong organizational culture and an incentive scheme based on piecework. Lincoln's organizational culture dates back to James Lincoln, who in 1907 joined the company that his brother had established a few years earlier. Lincoln had a strong respect for the ability of the individual and believed that, correctly motivated, ordinary people could achieve extraordinary performance. He emphasized that Lincoln should be a meritocracy where people were rewarded for their individual effort. Strongly egalitarian, Lincoln removed barriers to communication between "workers" and "managers," practicing an open-door policy. He made sure that all who worked for the company were treated equally; for example, everyone ate in the same cafeteria, there were no reserved parking places for "managers," and so on. Lincoln also believed that any gains in productivity should be shared with consumers in the form of lower prices, with employees in the form of higher pay, and with shareholders in the form of higher dividends. The organizational culture that grew out of James Lincoln's beliefs was reinforced by the company's incentive system. Production workers receive no base salary but are paid according to the number of pieces they produce. The piecework rates at the company enable an employee working at a normal pace to earn an income equivalent to the average wage for manufacturing workers in the area where a factory is based. Workers have responsibility for the quality of their output and must repair any defects spotted by quality inspectors before the pieces are included in the piecework calculation. Since 1934, production workers have been awarded a semiannual bonus based on merit ratings. These ratings are based on objective criteria (such as an employee's level and quality of output) and subjective criteria (such as an employee's attitudes toward cooperation and his or her dependability). These systems give Lincoln's employees an incentive to work hard and to generate innovations that boost productivity, for doing so influences their level of pay. Lincoln's factory workers have been able to earn a base pay that often exceeds the average manufacturing wage in the area by more than 50 percent and receive a bonus on


top of this that in good years could double their base pay. Despite high employee compensation, the workers are so productive that Lincoln has a lower cost structure than its competitors. While this organizational culture and set of incentives works well in the United States, where it is compatible with the individualistic culture of the country, it did not translate easily into foreign operations. In the 1980s and early 1990s, Lincoln expanded aggressively into Europe and Latin America, acquiring a number of local arc welding manufacturers. Lincoln left local managers in place, believing that they knew local conditions better than Americans. However, the local managers had little working knowledge of Lincoln's strong organizational culture and were unable or unwilling to impose that culture on their units, which had their own long-established organizational cultures. Nevertheless, Lincoln told local managers to introduce its incentive systems in acquired companies. They frequently ran into legal and cultural roadblocks. In many countries, piecework is viewed as an exploitive compensation system that forces employees to work ever harder. In Germany, where Lincoln made an acquisition, it is illegal. In Brazil, a bonus paid for more than two years becomes a legal entitlement! In many other countries, both managers and workers were opposed to the idea of piecework. Lincoln found that many European workers valued extra leisure more highly than extra income and were not prepared to work as hard as their American counterparts. Many of the acquired companies were also unionized, and the local unions vigorously opposed the introduction of piecework. As a result, Lincoln was not able to replicate the high level of employee productivity that it had achieved in the United States, and its expansion pulled down the performance of the entire company.

CONTROL SYSTEMS, INCENTIVES, AND STRATEGY IN THE INTERNATIONAL BUSINESS The key to understanding the relationship between international strategy, control systems, and incentive systems is the concept of performance ambiguity. Performance Ambiguity Performance ambiguity exists when the causes of a subunit's poor performance are not clear. This is not uncommon when a subunit's performance is partly dependent on the performance of other subunits; that is, when there is a high degree of interdependence between subunits within the organization. Consider the case of a French subsidiary of a U.S. firm that depends on another subsidiary, a manufacturer based in Italy, for the products it sells. The French subsidiary is failing to achieve its sales goals, and the U.S. management asks the managers to explain. They reply that they are receiving poor-quality goods from the Italian subsidiary. The U.S. management asks the managers of the Italian operation what the problem is. They reply that their product quality is excellent the best in the industry, in fact and that the French simply don't know how to sell a good product. Who is right, the French or the Italians? Without more information, top management cannot tell. Because they are dependent on the Italians for their product, the French have an alibi for poor performance. U.S. management needs to have more information to determine who is correct. Collecting this information is expensive and time consuming and will divert attention away from other issues. In other words, performance ambiguity raises the costs of control. Consider how different things would be if the French operation were selfcontained, with its own manufacturing, marketing, and R&D facilities. The French operation would lack a convenient alibi for its poor performance; the French managers would stand or fall on their own merits. They could not blame the Italians for their poor


sales. The level of performance ambiguity, therefore, is a function of the interdependence of subunits in an organization. Strategy, Interdependence, and Ambiguity Now let us consider the relationships between strategy, interdependence, and performance ambiguity. In firms pursuing a localization strategy, each national operation is a stand-alone entity and can be judged on its own merits. The level of performance ambiguity is low. In an international firm, the level of interdependence is somewhat higher. Integration is required to facilitate the transfer of core competencies and skills. Since the success of a foreign operation is partly dependent on the quality of the competency transferred from the home country, performance ambiguity can exist. In firms pursuing a global standardization strategy, the situation is still more complex. Recall that in a pure global firm the pursuit of location and experience curve economies leads to the development of a global web of value creation activities. Many of the activities in a global firm are interdependent, A French subsidiary's ability to sell a product does depend on how well other operations in other countries perform their value creation activities. Thus, the levels of interdependence and performance ambiguity are high in global companies. The level of performance ambiguity is highest of all in transnational firms. Transnational firms suffer from the same performance ambiguity problems that global firms do. In addition, because they emphasize the multidirectional transfer of core competencies, they also suffer from the problems of firms pursuing an international strategy. The extremely high level of integration within transnational firms implies a high degree of joint decision making, and the resulting interdependencies create plenty of alibis for poor performance. There is lots of room for finger-pointing in transnational firms. TABLE 1 Strategy Localization International Global Transnational Interdependence Low Moderate High Very high Performance Ambiguity Low Moderate High Very high Cose of Control Low Moderate High Very high Interdependen ce, Performance Ambiguity, and the Costs of Control for the Four International Business Strategies

IMPLICATIONS FOR CONTROL AND INCENTIVES The arguments of the previous section and the implications for the costs of control are summarized in Table 1. The costs of control might be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance. This will be greater when the amount of performance ambiguity is greater. When performance ambiguity is low, management can use output controls and a system of management by exception; when it is high, they have no such luxury. Output controls do not provide totally unambiguous signals of a subunit's efficiency when the performance of that subunit depends on the performance of another subunit within the organization. Thus,


management must devote time to resolving the problems that arise from performance ambiguity, with a corresponding rise in the costs of control. Table 1 reveals a paradox. We saw in Chapter 12 that a transnational strategy is desirable because it gives a firm more ways to profit from international expansion than do localization, international, and global standardization strategies. But now we see that due to the high level of interdependence, the costs of controlling transnational firms are higher than the costs of controlling firms that pursue other strategies. Unless there is some way of reducing these costs, the higher profitability associated with a transnational strategy could be canceled out by the higher costs of control. The same point, although to a lesser extent, can be made with regard to global firms. Although firms pursuing a global strategy can reap the cost benefits of location and experience curve economies, they must cope with a higher level of performance ambiguity, and this raises the costs of control (in comparison with firms pursuing an international or localization strategy). This is where control systems and incentives come in. When we survey the systems that corporations use to control their subunits, we find that irrespective of their strategy, multinational firms all use output and bureaucratic controls. However, in firms pursuing either global or transnational strategies, the usefulness of output controls is limited by substantial performance ambiguities. As a result, these firms place greater emphasis on cultural controls. Cultural control by encouraging managers to want to assume the organization's norms and value systems gives managers of interdependent subunits an incentive to look for ways to work out problems that arise between them. The result is a reduction in finger-pointing and, accordingly, in the costs of control. The development of cultural controls may be a precondition for the successful pursuit of a transnational strategy and perhaps of a global strategy as well. As for incentives, the material discussed earlier suggests that the conflict between different subunits can be reduced and the potential for cooperation enhanced, if incentive systems are tied in some way to a higher level in the hierarchy. When performance ambiguity makes it difficult to judge the performance of subunits as stand-alone entities, linking the incentive pay of senior managers to the entity to which both subunits belong can reduce the resulting problems.

GENDER DIFFERENCES IN LEADERSHIP Are there gender difference in leadership styles? Are men more effective leaders, or does that honor belong to women? Even asking those questions is certain to evoke emotions on both sides of the debate. The evidence indicates that the two sexes are more alike than different in the ways that they lead. Much of this similarity is based on the fact that leaders, regardless of gender, perform similar activities in influencing others. Thats their job, and the two sexes do it equally well. The same is also true in other professions. For instance, although the stereotypical nurse is a woman, men are equally effective and successful in this career. Saying the sexes are more alike than different still means the two are not exactly the same. The most common difference lies in leadership styles. Women tend to use a more democratic style. They encourage participation of their followers and willing to share their positional power with other best through their charisma, expertise, and their interpersonal skill. Men, on the other hand, tend to typically use a task-centred leadership style such as directing activities and relying on their positional power to control the organization's activities." But surprisingly, even this difference is blurred. All


things considered, when a woman is a leader in a traditionally male-dominated job (such as that of a police officer), she tends to lead in a manner that is more task centered. Further compounding this issue are the changing roles of leader in today's organizations. With an increased emphasis on teams, employee involvement, and interpersonal skills, democratic leadership styles are more in demand. Leaders need to be more sensitive to their follower's needs, be more open in their communications, and build more trusting relationships. And, many of these are behaviors that women have typically grown up developing. So what do you think? Is there a difference between the sexes in terms of leadership styles? Do men or women make better leader? Would you prefer to work for a man or a woman? Explain. WHAT IS TEAM LEADERSHIP? Leadership increasingly exists within a team context. As teams grow in popularity, the role of the team leader takes on heightened importance. This role is different from the traditional leadership role performed by first-line supervisors. J. D. Bryant, a supervisor at Texas Instruments' Forest Lane plant in Dallas, found that out. One day he was happily overseeing a staff of 15 circuit-board assemblers. The next day he was informed that the company was moving to teams and that he was to become a "facilitator." "I'm supposed to teach the teams everything I know and then let them make their own decisions," he said. Confused about his new role, he admitted "there was no clear plan on what I was supposed to do." In this section, we consider the challenge of being a team leader, review the new roles that team leaders take on, and offer some tips on how to perform effectively in this position. Many leaders are not equipped to handle the change to teams. As one prominent consultant noted, "even the most capable managers have trouble making the transition because all the command-and-control type things they were encouraged to do before are no longer appropriate. There's no reason to have any skill or sense of this." This same consultant estimated that "probably 15 percent of managers are natural team leaders; another 15 percent could never lead a team because it runs counter to their personality. [They're unable to sublimate their dominating style for the good of the team.] Then there's that huge group in the middle: Team leadership doesn't come naturally to them, but they can learn it." The challenge for most managers, then, is to become an effective team leader. They have to learn the patience to share information, the ability to trust others and to give up authority, and the understanding of when to intervene. Effective leaders have mastered the difficult balancing act of knowing when to leave their teams alone and when to intercede. New team leaders may try to retain too much control at a time when team members need more autonomy, or they may abandon their teams at times when the teams need support and help.' A study of 20 organizations that had reorganized themselves around teams found certain common responsibilities that all leaders had to assume. These included coaching, facilitating, handling disciplinary problems, reviewing team/individual performance, training, and communication.' Many of these responsibilities apply to managers in general. A more meaningful way to describe the team leader's job is to focus on two priorities: managing the team's external boundary and facilitating the team process. We've broken these priorities down into four specific roles (see Exhibit).


Exhibit. Team Leaders Roles First, team leaders are liaisons with external constituencies. These include upper management, other internal teams, customers, and suppliers. The leader represents the team to other constituencies, secures needed resources, clarifies others' expectations of the team, gathers information from the outside, and shares this information with team members. Second, team leaders are troubleshooters. When the team has problems and asks for assistance, team leaders sit in on meetings and help to resolve the problems. This rarely relates to technical or operational issues because the team members typically know more about the tasks than does the team leader. The leader is most likely to contribute by asking penetrating questions, helping the team talk through problems, and getting needed resources from external constituencies. For instance, when a team in an aerospace firm found itself short-handed, its team leader took responsibility for getting more staff. He presented the team's case to upper management and got approval through the company's human resources department. Third, team leaders are conflict managers. When disagreements surface, they help process the conflict. What's the source of the conflict? Who is involved? What are the issues? What resolution options are available? What are the advantages and disadvantages of each? By getting team members to address questions such as these, the leader minimizes the disruptive aspects of intrateam conflicts. Finally, team leaders are coaches. They clarify expectations and roles, teach, offer support, cheerlead, and whatever else is necessary to help team members improve their work performance. BUILDING TRUST: THE ESSENCE OF LEADERSHIP Trust, or lack of trust, is an increasingly important leadership issue in todays organization. We briefly introduced you to trust in our discussion of high-performing work teams. In this chapter, we want to further explore this issue of trust by defining what trust is and show you how trust is a vital component of effective leadership. What is Trust? Trust is a positive expectation that another will not through words, actions, or decisions act opportunistically. The two most important elements


of our definition are that it implies familiarity and risk. The phrase positive expectation in our definition assumes knowledge and familiarity about the other party. Trust is a history dependent process based on relevant but limited samples of experience. It takes time to form building incrementally and accumulating. Most of us find it hard, if not impossible, to trust someone immediately if we dont know anything about them. At the extreme, in the case of total ignorance, we can gamble but we cant trust. But as we get to know someone and relationship matures, we gain confidence in our ability to form a positive expectation. The word opportunistically refers to the inherent risk and vulnerability in any trusting relationship. Trust involves making oneself vulnerable as for example, we disclose intimate information or rely on anothers promises. By its very nature, trust provides the opportunity to be disappointed or to be taken advantage of. But trust is not taking risk per se; rather it is a willingness to take risk. So when we trust someone, we expect that they will not take advantage of us. This willingness to take risks is common to all trust situations. What are the key dimensions that underlie the concept of trust? Recent evidence has identified five: integrity, competence, consistency, loyalty and openness. Integrity refers to honesty and truthfulness. Of all five dimensions, this one seems to be most critical "Without a perception of the other's 'moral character' and 'basic honesty,' other dimensions' of trust are meaningless." Integrity Competence Consistency Loyalty Openness Honesty and truthfulness Technical and interpersonal knowledge and skills Reliability, predictability, and good judgment Willingness to protect and save face for a person Willingness to share ideas and information freely

trust The belief in the integrity, character, and ability of a leader

Competence encompasses an individuals technical and interpersonal knowledge and skills. Does the person know what he or she is talking about? You're unlikely to listen to or depend on someone whose abilities you don't respect. You need to believe that the person has the skills and abilities to carry out what he or she says they will do. Consistency relates to an individuals reliability, predictability, and good judgment in handling situations. Inconsistencies between words and action decrease trust. This dimension is particularly relevant for managers. Nothing is noticed more quickly than a discrepancy between what executives preach and what they expect their associates to practice. Loyalty is the willingness to protect and save face for another person. Trust requires that you can depend on someone not to act opportunistically. The final dimension of trust is openness. Can you rely on the person to give you the full truth? Imagine you're the new CEO of a multi-billion dollar corporation. You're succeeding the founder's son-in-law who held the position for more than 33 years growing it to the company that it is today. Your predecessor was dynamic. You're considered mellow and laid back.


And he's not really leaving, just going to the position of Chairman of the Board to "keep an eye" on things. How would you feel and what should you do? Well, that's exactly what Robert E. Brown, CEO of Bombardier, the Canadian-based manufacturer of such products as snowmobiles, rail cars, and aircraft had to ask. His answer is trust. By building trust with his employees focusing on his integrity, competence, consistency, loyalty, and openness his transition will be made that much easier. WHY IS TRUST ONE FOUNDATION OF LEADERSHIP? Trust appears to be a primary attribute associated with leadership. In fact, if you look back at our discussion of leadership traits, honesty and integrity were found to be among the six traits consistently associated with leadership. As one author noted: "Part of the leader's task has been, and continues to be, working with people to find and solve problems, but whether leaders gain access to the knowledge and creative thinking they need to solve problems depends on how much people trust them. Trust and trust-worthiness modulate the leader's access to knowledge and cooperation." When followers trust a leader, they are willing to be vulnerable to the leader's actions confident that their rights and interests will not be abused. People are unlikely to look up to or follow someone who they perceive as dishonest or who is likely to take advantage of them. Honesty, for instance, consistently ranks at the top of most lists of characteristics admired in leaders. "Honesty is absolutely essential to leadership. If people are going to follow someone willingly, whether it be into battle or into the boardroom, they first want to assure themselves that the person is worthy of their trust." Now, more than ever, managerial and leadership effectiveness depends on the ability to gain the trust of followers. For instance, work process engineering, downsizing, and the increased use of temporary employees have undermined a lot of employees' trust in management. A recent survey of employees by a firm in Chicago found 40 percent agreed with the statement: "I often don't believe what management says.' In times of change and instability, people turn to personal relationships for guidance, and the quality of these relationships are largely determined by level of trust. Moreover, contemporary management practices such as empowerment and the use of work teams require trust to be effective. WHAT ARE THREE TYPES OF TRUST? There are three types of trust in organizational relationships: deterrence-based, knowledge-based, and identification-based. Let's briefly look at each of these. Deterrence-based Trust The most fragile relationships are contained in deterrence-based trust. One violation or inconsistency can destroy the relationship. This form of trust is based on fear of reprisal if the trust is violated. Collaborators who are in this type of relationship do what they say because they fear the consequences of not following through on their obligations. Deterrence-based trust will work only to the degree that punishment is possible, consequences are clear, and the punishment is actually imposed if the trust is violated. To be sustained, the potential loss of future interaction with the other party must outweigh the profit potential that comes from violating expectations. Moreover, the potentially harmed party must be willing to introduce harm (for example, I have no qualms about


speaking badly of you if you betray my trust) to the person acting distrustingly. Most new relationships begin on a base of deterrence. Take, as an illustration, a situation of selling your car to a friend of a friend. You don't know the buyer. You might be motivated to refrain from telling this buyer about all the problems that you know the car has. Such behavior would increase your chances of selling the car and securing the highest price. However, you don't withhold information; you openly share the car's flaws. Why? Probably because of fear of reprisal. If the buyer later thinks you deceived him, he is likely to share this with your mutual friend. If you knew that the buyer would never say anything to the mutual friend, you might be tempted to take advantage of the opportunity. If it's clear that the buyer would tell and that your mutual friend would think considerably less of you for taking advantage of this buyer-friend, your honesty could be explained in deterrence terms. Another example of deterrence-based trust is a new manager-employee relationship. As an employee, you typically trust a new boss even though there is little experience to base that trust on. The bond that creates this trust lies in the authority held by the boss and the punishment he or she can impose if you fail to fulfill your job-related obligations. Knowledge-based trust Most organizational relationships are rooted in knowledge-based trust. That is, trust is based on the behavioral predictability that comes from a history of interaction. It exists when collaborator have adequate information about someone to understand them well enough to be able to accurately predict their behavior. Interestingly, at the knowledge-based level, trust is not necessarily broken by inconsistent behavior. If you believe you can adequately explain or understand another's apparent violation, you can accept it, forgive the person, and move on in the relationship. However, the same inconsistency at the deterrence level is likely to irrevocably break the trust. In an organizational context, most manager-employee relationships are knowledge based. Both parties have enough experience working with each other to know what to expect. A long history of consistently open and honest interactions, for instance, is not likely to be permanently destroyed by a single violation. Identification-based trust The highest level of trust is achieved when there is an emotional connection between the parties. It allows one party to act as an agent for the other and substitute for that person in interpersonal transactions. This is called identification-based trust. Trust exists because the parties understand each other's intentions and appreciate the other's wants and desires. This mutual understanding is developed to the point that each can effectively act for the other. Controls are minimal at this level. You don't need to monitor the other party because unquestioned loyalty exists. The best example of identification-based trust is a long-term, happily married couple. A spouse comes to learn what's important to his or her partner and anticipates those actions. The partner, in turn, takes this for granted. Increased identification enables each to think like the other, feel like the other, and respond like the other. You see identification-based trust occasionally in organizations among people who have worked together for long periods of time and have a depth of experience that allows them to know each other inside and out, This is also the type of trust that managers ideally seek in teams. Team members are so comfortable and trusting of each other that they can anticipate each other and freely act in each's absence. Realistically, in the current


work world, most large corporations have broken the bonds of identification trust they may have built with long-term employees. Broken promises have led to a breakdown in what was, at one time, a bond of unquestioned loyalty. It's likely to have been, replaced with knowledge-based trust. LEARNING TO INFLUENCE The first thing to remember is that you can't have influence without integrity. If you're selfish or act out of vested interest, people will always suspect your motives trustworthiness is often judged by whether or not you have an axe to grind. So far as tactics are concerned, there are three main approaches: consultation, persuasion and inspiration. Consultation Simply announcing decisions tends to encourage disagreement and provoke challenge; you need to build your credibility and establish a reputation for being fairminded and reasonable first. If team members participate in planning and implementation, they will feel useful and respected, and will develop a sense of shared ownership of a project, strategy or change. As a result they will be more committed to making it a success. So you should draw out others' contributions, building on and extending their ideas, rather than countering with alternatives. Open-ended questions (such as 'How would you see that developing?' or 'What would you expect the consequences to be?') should gently encourage people to see the value of what you are proposing. You should also be quick to give credit for others' ideas and suggestions, and be willing to delegate responsibilities, wherever possible. The more involved people are, the more they will feel they are working towards a shared goal, and the better the result is likely to be. In addition, there should be fewer demands on you in terms of follow-up and supervision. Consultation is especially appropriate if you have the authority to plan a task or project but are relying on other people to help implement the plans. Inspiration Inspiration appeals to people's emotions, ideals, aspirations and values. It encourages personal commitment, and channels energy into working toward a common purpose. It is the most crucial element in your ability to sell an idea to others. To gain commitment to a request or proposal, you'll need to show that it has exciting possibilities and generate a shared identity for your team -a common vision of the future. You then need to convince team members that through their collective and individual efforts this vision can become a reality. Persuasion Persuasion involves the use of logical arguments, factual information, opinions and ideas. Its aim is to convince others that your request or proposal is feasible and consistent with shared objectives. In order to persuade people, or sell them on an idea,' you must be forward with your proposals and suggestions and not afraid of others' reactions to them. Effective persuasion requires persistence and energy. With persuasion, the basis for agreement and approval is the soundness of your reasoning. Remember, the more important the issue, the more people will scrutinize your reasons, so be prepared!


You also need to cover all angles. The more arguments you can offer, the more likely people are to find at least one of them convincing. However, make sure each argument is sound, or you could end up weakening your position. You should also try to cover all the possible objections to your idea, and argue convincingly against them. Persuasion is the most direct form of influence, and is most appropriate when you need to sell an idea to a large number of people. INFLUENCING PEOPLE Have you been a part of a group that seldom agrees on what should be done and spends a long time making decisions? It is interesting to see what the leader of a group does when the group is not working well. Some leaders will complain and criticize group members. Others will give up on the group and attempt to do the work themselves. Neither of those responses improves the group's effectiveness. Effective leaders must be able to influence members. Influence enables a person to affect the actions of others. Kinds of Influence There are several kinds of influence a leader can use. Position influence is the ability to get others to accomplish tasks because of the position the leader holds. If the leader can influence an employee's job rating, wages, and chances for promotion, it is likely that the employee will respond to the leader's requests. Reward influence results from the leader's ability to give or withhold rewards. Rewards may be in the form of money or job benefits. Rewards can be non-monetary, such as recognition and praise. Leaders can use rewards in a negative way by requiring people to work overtime or by criticizing rather than praising employees. Expert influence arises when group members recognize that the leader has special expertise in the area. Suppose a group of inexperienced salespeople have a manager with years of successful selling experience. They will likely look to the manager for guidance. Identity influence stems from the personal trust and respect members have for the leader. If the leader is well liked and is thought to have the best interests of the group in mind, members are likely to support the leader. The influence of leaders is not always positive. It may not be effective for a long period. If a manager is not viewed as an expert and is not well liked, he or she will have to rely on position and reward influence. It is not easy to continue to get people to do things for you just because you are their manager. They will probably do just enough to get by, get a reward, or avoid punishment. Most leaders try to develop expert and identity influence.


Formal and Informal Influence How does a person influence a group to accomplish important goals? It may depend on whether you are a manager or not. Managers have formal influence. Others in the organization can have informal influence. What happens when your teacher assigns a group project and the team members get together for the first time? Usually one or two people emerge as leaders to help get the group focused and organized. That is known as informal influence because the leadership role is not part of a formal structure. Consider another situation where members of Student Council meet for the first time. There are bylaws that call for the election of officers. The person elected president has formal influence because the leadership position is part of the organization's structure. Often in organizations, both formal and informal influence will operate at the same time. One person will be the manager and have formal influence. There may be a well-liked and respected employee in the group. That person will have informal influence. If there is a conflict between the formal and informal influence, the group will probably not work effectively.

Think of a manager, coach, or teacher you've enjoyed working with. What characteristics made it easy to follow his or her lead?

Group members will have difficulty deciding whose influence to follow. Effective managers recognize informal influence and work closely with the informal leaders to gain their support and avoid conflicts. checkpoint What is the difference between formal and informal influence?

HOW TO BUILD RELATIONSHIPS How you build relationships will rely a lot on your individual style, but here are some useful guidelines: Take time to establish rapport. Building good relationships is not an optional extra to be squeezed in whenever you have a few moments; it's a cornerstone of your success as a manager. Establish why you need a good relationship. Find a common objective, such as improving performance by 10 per cent, and focus on that. Remember that you're not


building a relationship with a person just to be nice, it's in the interests of the business. Be patient - building a relationship takes time. Avoid being self-absorbed - focus on the other person. Rather than worrying about your image, whether or not the other person like you, or your own wants and needs, try to put yourself in their shoes. However, don't fall into the trap of assuming you know what's best for people, or what they want, without asking them. Listen carefully, and always check understanding and assumptions. Don't try to turn people into clones of yourself, and don't expect them always to have the same outlook as you. Try to develop your empathy and understanding. Team relationships work best when people are complementary - where there is a balance of skills, experiences and outlooks -not when everyone is the same. Don't merely tolerate differences, exploit them. This involves the following steps: identify the difference; allow for it; enjoy it; and finally, exploit it! This is, of course, far easier said than done. To exploit differences successfully, it's essential to focus on the benefits of the particular skills and qualities of each individual and the way in which they operate. It's also useful to recognize that this is a two-way process - the other person may also have difficulties with the way you work, and they too will need to learn how to gain from it! Be tolerant of people's weaknesses. Everyone has them - even you! Remember that a weakness is often the flip-side of a strength. Be open and master the art of feedback. Don't put off tackling difficult issues they'll only fester. Take genuine pleasure in other people and their success. Understand that, as a manager, their success is your success. If you're changing your behaviour or approach, explain your rationale, describing what you seek to achieve and asking for feedback. If you change overnight without explanation, people will be suspicious of your motives - particularly if it's a one-off change, or your behaviour is inconsistent. Remember to like yourself and what you're doing, and behave in a way that ensures you will continue to do so. Not only will you sleep easier at nights, but other people will respond to your self-respect and integrity. COMMON MISTAKES It's useful to be aware of some of the most common mistakes in handling personal relations. Firstly, don't assume you automatically have rights over people. Good relationships are based on trust and respect, which you have to earn. Another common mistake is being too eager. Rapport takes time to develop, and often there are barriers to overcome. What's more, no two relationships are the same each develops at its own pace. So don't try to force it, and don't give up too soon - the breakthrough might be just around the corner. You should also beware of taking things personally. 'I disagree' doesn't mean 'I think you're stupid' or 'I don't like you.' And 'I agree' doesn't necessarily mean 'I think you're brilliant' or 'I like you'! Remember, for the most part disagreements are about ideas. Once you have established a good relationship, it's vital not to take the other person for granted. You must continue to show that you respect and value someone, if you want the same in return. Finally, bear in mind that deception can shatter relationships. Ideally, you should


try to tell the whole truth, all the time. Being open and honest establishes trust. However, there are of course times when complete honesty can do more harm than good, so be prudent and think about the possible impact of what you say.

GLOBALIZATION: THREAT OR OPPORTUNITY? I. Introduction The term "globalization" has acquired considerable emotive force. Some view it as a process that is beneficial a key to future world economic development and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. This brief offers an overview of some aspects of globalization and aims to identify ways in which countries can tap the gains of this process, while remaining realistic about its potential and its risks. Globalization offers extensive opportunities for truly worldwide development but it is not progressing evenly. Some countries are becoming integrated into the global economy more quickly than others. Countries that have been able to integrate are seeing faster growth and reduced poverty. Outward-oriented policies brought dynamism and greater prosperity to much of East Asia, transforming it from one of the poorest areas of the world 40 years ago. And as living standards rose, it became possible to make progress on democracy and economic issues such as the environment and work standards. By contrast, in the 1970s and 1980s when many countries in Latin America and Africa pursued inward-oriented policies, their economies stagnated or declined, poverty increased and high inflation became the norm. In many cases, especially Africa, adverse external developments made the problems worse. As these regions changed their policies, their incomes have begun to rise. An important transformation is underway. Encouraging this trend, not reversing it, is the best course for promoting growth, development and poverty reduction. The crises in the emerging markets in the 1990s have made it quite evident that the opportunities of globalization do not come without risks risks arising from volatile capital movements and the risks of social, economic, and environmental degradation created by poverty. This is not a reason to reverse direction, but for all concerned in developing countries, in the advanced countries, and of course investors to embrace policy changes to build strong economies and a stronger world financial system that will produce more rapid growth and ensure that poverty is reduced. How can the developing countries, especially the poorest, be helped to catch up? Does globalization exacerbate inequality or can it help to reduce poverty? And are countries that integrate with the global economy inevitably vulnerable to instability? These are some of the questions covered in the following sections. II. What is Globalization? Economic "globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here.


At its most basic, there is nothing mysterious about globalization. The term has come into common usage since the 1980s, reflecting technological advances that have made it easier and quicker to complete international transactions both trade and financial flows. It refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity village markets, urban industries, or financial centers. Markets promote efficiency through competition and the division of labor the specialization that allows people and economies to focus on what they do best. Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets. But markets do not necessarily ensure that the benefits of increased efficiency are shared by all. Countries must be prepared to embrace the policies needed, and in the case of the poorest countries may need the support of the international community as they do so. III. Unparalleled Growth, Increased Inequality: 20th Century Income Trends Globalization is not just a recent phenomenon. Some analysts have argued that the world economy was just as globalized 100 years ago as it is today. But today commerce and financial services are far more developed and deeply integrated than they were at that time. The most striking aspect of this has been the integration of financial markets made possible by modern electronic communication. The 20th century saw unparalleled economic growth, with global per capita GDP increasing almost five-fold. But this growth was not steady the strongest expansion came during the second half of the century, a period of rapid trade expansion accompanied by trade and typically somewhat later, financial liberalization. It is possible to break the century into four periods. In the inter-war era, the world turned its back on internationalism or globalization as we now call it and countries retreated into closed economies, protectionism and pervasive capital controls. This was a major factor in the devastation of this period, when per capita income growth fell to less than 1 percent during 1913-1950. For the rest of the century, even though population grew at an unprecedented pace, per capita income growth was over 2 percent, the fastest pace of all coming during the post-World War boom in the industrial countries. The story of the 20th century was of remarkable average income growth, but it is also quite obvious that the progress was not evenly dispersed. The gaps between rich and poor countries, and rich and poor people within countries, have grown. The richest quarter of the worlds population saw its per capita GDP increase nearly six-fold during the century, while the poorest quarter experienced less than a three-fold increase. Income inequality has clearly increased. But, as noted below, per capita GDP does not tell the whole story. IV. Developing countries: How deeply integrated? Globalization means that world trade and financial markets are becoming more integrated. But just how far have developing countries been involved in this integration? Their experience in catching up with the advanced economies has been mixed. In some countries, especially in Asia, per capita incomes have been moving quickly toward levels in the industrial countries since 1970. A larger number of developing countries have made only slow progress or have lost ground. In particular, per capita incomes in Africa have declined relative to the industrial countries and in some countries have declined in absolute terms. The countries catching up are those where trade has grown strongly.


Consider four aspects of globalization: Trade: Developing countries as a whole have increased their share of world tradefrom 19 percent in 1971 to 29 percent in 1999. For instance, the newly industrialized economies (NIEs) of Asia have done well, while Africa as a whole has fared poorly. The composition of what countries export is also important. The strongest rise by far has been in the export of manufactured goods. The share of primary commodities in world exports such as food and raw materials that are often produced by the poorest countries, has declined. Capital movements: Many people associate with globalization, sharply increased private capital flows to developing countries during much of the 1990s. It also shows that (a) the increase followed a particularly "dry" period in the 1980s; (b) net official flows of "aid" or development assistance have fallen significantly since the early 1980s; and (c) the composition of private flows has changed dramatically. Direct foreign investment has become the most important category. Both portfolio investment and bank credit rose but they have been more volatile, falling sharply in the wake of the financial crises of the late 1990s. Movement of people: Workers move from one country to another partly to find better employment opportunities. The numbers involved are still quite small, but in the period 1965-90, the proportion of labor forces round the world that was foreign born increased by about one-half. Most migration occurs between developing countries. But the flow of migrants to advanced economies is likely to provide a means through which global wages converge. There is also the potential for skills to be transferred back to the developing countries and for wages in those countries to rise. Spread of knowledge (and technology): Information exchange is an integral, often overlooked, aspect of globalization. For instance, direct foreign investment brings not only an expansion of the physical capital stock, but also technical innovation. More generally, knowledge about production methods, management techniques, export markets and economic policies is available at very low cost, and it represents a highly valuable resource for the developing countries. The special case of the economies in transition from planned to market economies they too are becoming more integrated with the global economy is not explored in much depth here. In fact, the term "transition economy" is losing its usefulness. Some countries (e.g. Poland, Hungary) are converging quite rapidly toward the structure and performance of advanced economies. Others (such as most countries of the former Soviet Union) face long-term structural and institutional issues similar to those faced by developing countries. V. Does Globalization Increase Poverty and Inequality? During the 20th century, global average per capita income rose strongly, but with considerable variation among countries. It is clear that the income gap between rich and poor countries has been widening for many decades. The most recent World Economic Outlook studies 42 countries (representing almost 90 percent of world population) for which data are available for the entire 20th century. It reaches the conclusion that output per capita has risen appreciably but that the distribution of income among countries has become more unequal than at the beginning of the century. But incomes do not tell the whole story; broader measures of welfare that take account of social conditions show that poorer countries have made considerable progress. For instance, some low-income countries, e.g. Sri Lanka, have quite impressive social indicators. One recent paper finds that if countries are compared using the UNs Human


Development Indicators (HDI), which take education and life expectancy into account, then the picture that emerges is quite different from that suggested by the income data alone. Indeed the gaps may have narrowed. A striking inference from the study is a contrast between what may be termed an "income gap" and an "HDI gap". The (inflationadjusted) income levels of todays poor countries are still well below those of the leading countries in 1870. And the gap in incomes has increased. But judged by their HDIs, todays poor countries are well ahead of where the leading countries were in 1870. This is largely because medical advances and improved living standards have brought strong increases in life expectancy. But even if the HDI gap has narrowed in the long-term, far too many people are losing ground. Life expectancy may have increased but the quality of life for many has not improved, with many still in abject poverty. And the spread of AIDS through Africa in the past decade is reducing life expectancy in many countries. This has brought new urgency to policies specifically designed to alleviate poverty. Countries with a strong growth record, pursuing the right policies, can expect to see a sustained reduction in poverty, since recent evidence suggests that there exists at least a one-to-one correspondence between growth and poverty reduction. And if strongly pro-poor policies for instance in well-targeted social expenditure are pursued then there is a better chance that growth will be amplified into more rapid poverty reduction. This is one compelling reason for all economic policy makers, including the IMF, to pay heed more explicitly to the objective of poverty reduction. VI. How Can the Poorest Countries Catch Up More Quickly? Growth in living standards springs from the accumulation of physical capital (investment) and human capital (labor), and through advances in technology (what economists call total factor productivity). Many factors can help or hinder these processes. The experience of the countries that have increased output most rapidly shows the importance of creating conditions that are conducive to long-run per capita income growth. Economic stability, institution building, and structural reform are at least as important for long-term development as financial transfers, important as they are. What matters is the whole package of policies, financial and technical assistance, and debt relief if necessary. Components of such a package might include: Macroeconomic stability to create the right conditions for investment and saving; Outward oriented policies to promote efficiency through increased trade and investment; Structural reform to encourage domestic competition; Strong institutions and an effective government to foster good governance; Education, training, and research and development to promote productivity; External debt management to ensure adequate resources for sustainable development. All these policies should be focussed on country-owned strategies to reduce poverty by promoting pro-poor policies that are properly budgeted including health, education, and strong social safety nets. A participatory approach, including consultation with civil society, will add greatly to their chances of success. Advanced economies can make a vital contribution to the low-income countries efforts to integrate into the global economy: By promoting trade. One proposal on the table is to provide unrestricted market access for all exports from the poorest countries. This should help them move


beyond specialization on primary commodities to producing processed goods for export. By encouraging flows of private capital to the lower-income countries, particularly foreign direct investment, with its twin benefits of steady financial flows and technology transfer. By supplementing more rapid debt relief with an increased level of new financial support. Official development assistance (ODA) has fallen to 0.24 percent of GDP (1998) in advanced countries (compared with a UN target of 0.7 percent). As Michel Camdessus, the former Managing Director of the IMF put it: "The excuse of aid fatigue is not credible indeed it approaches the level of downright cynicism at a time when, for the last decade, the advanced countries have had the opportunity to enjoy the benefits of the peace dividend." The IMF supports reform in the poorest countries through its new Poverty Reduction and Growth Facility. It is contributing to debt relief through the initiative for the heavily indebted poor countries. VII. An Advanced Country Perspective: Does Globalization Harm Workers Interests? Anxiety about globalization also exists in advanced economies. How real is the perceived threat that competition from "low-wage economies" displaces workers from high-wage jobs and decreases the demand for less skilled workers? Are the changes taking place in these economies and societies a direct result of globalization? Economies are continually evolving and globalization is one among several other continuing trends. One such trend is that as industrial economies mature, they are becoming more service-oriented to meet the changing demands of their population. Another trend is the shift toward more highly skilled jobs. But all the evidence is that these changes would be taking place not necessarily at the same pace with or without globalization. In fact, globalization is actually making this process easier and less costly to the economy as a whole by bringing the benefits of capital flows, technological innovations, and lower import prices. Economic growth, employment and living standards are all higher than they would be in a closed economy. But the gains are typically distributed unevenly among groups within countries, and some groups may lose out. For instance, workers in declining older industries may not be able to make an easy transition to new industries. What is the appropriate policy response? Should governments try to protect particular groups, like low-paid workers or old industries, by restricting trade or capital flows? Such an approach might help some in the short-term, but ultimately it is at the expense of the living standards of the population at large. Rather, governments should pursue policies that encourage integration into the global economy while putting in place measures to help those adversely affected by the changes. The economy as a whole will prosper more from policies that embrace globalization by promoting an open economy, and, at the same time, squarely address the need to ensure the benefits are widely shared. Government policy should focus on two important areas: education and vocational training, to make sure that workers have the opportunity to acquire the right skills in dynamic changing economies; and well-targeted social safety nets to assist people who are displaced. VIII. Are Periodic Crises an Inevitable Consequence of Globalization? The succession of crises in the 1990s Mexico, Thailand, Indonesia, Korea, Russia, and Brazil suggested to some that financial crises are a direct and inevitable result of globalization. Indeed one question that arises in both advanced and emerging


market economies is whether globalization makes economic management more difficult (Box 1). Box 1. Does globalization reduce national sovereignty in economic policy-making? Does increased integration, particularly in the financial sphere make it more difficult for governments to manage economic activity, for instance by limiting governments choices of tax rates and tax systems, or their freedom of action on monetary or exchange rate policies? If it is assumed that countries aim to achieve sustainable growth, low inflation and social progress, then the evidence of the past 50 years is that globalization contributes to these objectives in the long term. In the short-term, as we have seen in the past few years, volatile short-term capital flows can threaten macroeconomic stability. Thus in a world of integrated financial markets, countries will find it increasingly risky to follow policies that do not promote financial stability. This discipline also applies to the private sector, which will find it more difficult to implement wage increases and price markups that would make the country concerned become uncompetitive. But there is another kind of risk. Sometimes investors particularly shortterm investors take too sanguine a view of a countrys prospects and capital inflows may continue even when economic policies have become too relaxed. This exposes the country to the risk that when perceptions change, there may be a sudden brutal withdrawal of capital from the country. In short, globalization does not reduce national sovereignty. It does create a strong incentive for governments to pursue sound economic policies. It should create incentives for the private sector to undertake careful analysis of risk. However, short-term investment flows may be excessively volatile. Efforts to increase the stability of international capital flows are central to the ongoing work on strengthening the international financial architecture. In this regard, some are concerned that globalization leads to the abolition of rules or constraints on business activities. To the contrary one of the key goals of the work on the international financial architecture is to develop standards and codes that are based on internationally accepted principles that can be implemented in many different national settings. Clearly the crises would not have developed as they did without exposure to global capital markets. But nor could these countries have achieved their impressive growth records without those financial flows. These were complex crises, resulting from an interaction of shortcomings in national policy and the international financial system. Individual governments and the international community as a whole are taking steps to reduce the risk of such crises in future. At the national level, even though several of the countries had impressive records of economic performance, they were not fully prepared to withstand the potential shocks that could come through the international markets. Macroeconomic stability, financial soundness, open economies, transparency, and good governance are all essential for countries participating in the global markets. Each of the countries came up short in one or more respects. At the international level, several important lines of defense against crisis were breached. Investors did not appraise risks adequately. Regulators and supervisors in the major financial centers did not monitor developments sufficiently closely. And not enough information was available about some international investors, notably offshore


financial institutions. The result was that markets were prone to "herd behavior" sudden shifts of investor sentiment and the rapid movement of capital, especially short-term finance, into and out of countries. The international community is responding to the global dimensions of the crisis through a continuing effort to strengthen the architecture of the international monetary and financial system. The broad aim is for markets to operate with more transparency, equity, and efficiency. The IMF has a central role in this process, which is explored further in separate fact sheets. IX. The Role of Institutions and Organizations National and international institutions, inevitably influenced by differences in culture, play an important role in the process of globalization. It may be best to leave an outside commentator to reflect on the role of institutions: "...That the advent of highly integrated commodity and financial markets has been accompanied by trade tensions and problems of financial instability should not come as a surprise. The surprise is that these problems are not even more severe today, given that the extent of commodity and financial market integration is so much greater. "One possibility in accounting (for this surprise) is the stabilizing role of the institutions built in the interim. At the national level this means social and financial safety nets. At the international level it means the WTO, the IMF, the Basle Committee of Banking Supervisors. These institutions may be far from perfect, but they are better than nothing, judging from the historical correlation between the level of integration on one hand and the level of trade conflict and financial instability on the other." (parentheses added) X. Conclusion As globalization has progressed, living conditions (particularly when measured by broader indicators of well being) have improved significantly in virtually all countries. However, the strongest gains have been made by the advanced countries and only some of the developing countries. That the income gap between high-income and low-income countries has grown wider is a matter for concern. And the number of the worlds citizens in abject poverty is deeply disturbing. But it is wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can be done to improve the situation. To the contrary: lowincome countries have not been able to integrate with the global economy as quickly as others, partly because of their chosen policies and partly because of factors outside their control. No country, least of all the poorest, can afford to remain isolated from the world economy. Every country should seek to reduce poverty. The international community should endeavor by strengthening the international financial system, through trade, and through aid to help the poorest countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to ensure all people in all countries have access to the benefits of globalization. LOCALIZING CULTURES Korea Herald January 13, 2004 Although the word globalization suggests a comprehensive and self-evident process, it is an incomplete term. It does not indicate precisely what is being globalized: the assumption is that it means the emergence of a single worldwide economy, into which all economies must integrate themselves, or more accurately, be integrated in the passive voice. But globalization does not obligingly halt at some ill-defined frontier between


economics, society and culture. Indeed, it has its own set of cultural attendants, which exercise a profound influence on the life of peoples everywhere. By definition, globalization makes all other cultures local. But to billions of people all over the world, their culture is not local. It is central to their lives and who they are. Globalization eclipses, or at least subordinates all previous ways of answering need and of dealing with the vicissitudes of human life. All other ways of life are diminished and marginalized at a stroke. Globalization is a declaration of war upon all other cultures. And in cultural wars, there is no exemption for civilians; there are no innocent bystanders. Why should it be expected that ancient and rooted civilizations are going to accept this peripheralisation without a struggle? The answer to that is that globalization carries an implicit promise that it will relieve poverty and offer security - perhaps the most ancient of human dreams. Because of the power of global capitalism to create wealth, it is assumed that this priority must sweep aside all other human preoccupations, including all existing institutions, interpretations and searches for meaning in the world. One U.S. academic describes it as a confrontation between global civilization and local cultures. One reason for the sense of incompleteness in the word globalization may be that it is a euphemistic contraction of global civilization; and that it is how it is promoted. It is disingenuous to assume that economy, society and culture operate in separate spheres. Indeed, the way in which geographical entities are now designated shows the increasing porosity of these notions. An advanced economy, an industrialized nation, a mature economy are set against a developing country, an emerging market, a liberalizing society. The terms are almost interchangeable. This suggests that, once exposed to the globalizing imperative, no aspect of social life, customary practice, traditional behavior will remain the same. There have been, broadly, two principal responses in the world, which we may call the fatalistic and the resistant. It is significant that among the most fatalistic have been the leaders of the G-7. Ex-President Clinton said globalization is a fact not a policy choice. Tony Blair said it is inevitable and irreversible. It may be considered paradoxical that the leaders of the most dynamic and expanding economies in the world offer such a passive, unchallenging view of what are, after all, human-made arrangements. These are among the richest and most proactive regimes, which can wage endless war on the great abstraction that is terror, topple regimes and lay down one WTO law for the poor and another for themselves. Is their helplessness in the presence of these mighty economic and cultural powers merely pretence? There are two aspects to resistance. One is the re-assertion of local identities even if local actually means spread over very large parts of the world. The reclaiming of the local is often focused in the field of culture - music, song, dance, drama, artifacts and folk culture. This suggests an attempt to quarantine it from the effects of economic integration; a kind of cordon sanitaire set up around a dwindling culture. Some people believe it is possible to get the best of both worlds - they accept the economic advantages of globalization and seek to maintain something of great value, language, tradition and custom. This is the relatively benign response. The other has become only too familiar: the violent reaction, the hatred of both economic and cultural globalization which many not merely perceive, but feel in the very core of their being, as an inseparable violation of identity. The resentment of many Muslims (not only extremists) toward the U.S. and Israel, the defensive posturing of Hindu fundamentalism, opposed both to Islam and Christianity, are the most vivid dramatizations of this. The appearance of Christian fundamentalism in the very heartlands of the


globalizing forces of the world, suggest that even here, there is a sense that values, beliefs and faith are being sacrificed to global necessity, and there has been an effort even by the most spectacular beneficiaries of economic globalization to salvage what they see as some of their most precious truths. The stigmatizing of the bearers of resistance as extremists or those who hate freedom is too simple a formulation for these complex and painful processes. To be unable to acknowledge the profound and complex social and religious disruptions that come as inseparable spectral companions of economic globalization has been the most grievous failure of the rich and powerful. That this strikes at the roots of human search for meaning ought to have been clear, particularly to those who invest so much in intelligence and security - abstractions which have become as insubstantial as the terror against which these are supposed to be deployed. For instance, the almost mystical and transcendent purposes assumed by consumption, the prodigality and waste of resources, particularly in the presence of billions of people who must eat every last grain of rice on their plate, the disgracing of such ancient virtues as frugality, husbanding resources, sustaining water and soil, the reverence for habitats that have given life for millennia - all this is detached from the dry bureaucratic prescriptions and advice offered up by the experts and professionals of development from the sequestered luxury of five-star hotels. When anger bursts forth, it is greeted with a monstrous show of incomprehension, and alas, wholly bogus humanitarianism, since the leaders of the globalizing world have sacrificed vast numbers of the poor in pursuit of their unrealizable vision of a whole planet colonized in their own image. The West had centuries to absorb these lessons and adapt its spiritual and religious values to those of a capitalism which usurped them, even though these did not go down without a struggle. But when these values are diffused globally, dogmatically, unmediated by time, with what violence they strike against the sensibilities of others. What a gratuitous onslaught it seems, what injurious affronts to rooted identity and custom. This then, is the context in which terror is to be stamped out. Who declared the cultural war which accompanies the economic re-arrangement of a whole world? Who initiated the terrible, terrorizing, terrifying doctrines that only by the grace of participating in the global market, will every individual in the world and those she loves, survive to see another day?


............................................................................................................... 3 UNIT 1 MANAGEMENT. FUNCTIONS AND LEVELS .......................................................... 4 UNIT 2 MANAGERS. ENTREPRENEURS ............................................................................ 19 UNIT 3 MANAGEMENT STYLES. CULTURAL DIVERSITY.............................................. 40 UNIT 4 COMMUNICATION .................................................................................................. 62 UNIT 5 RECRUITMENT AND SELECTION. HEADHUNTING ........................................... 76 UNIT 6 TEAMWORK ............................................................................................................. 98 UNIT 7 MOTIVATION. JOB SATISFACTION .................................................................... 111 UNIT 8 LEADERSHIP .......................................................................................................... 119 UNIT 9 DELEGATING ......................................................................................................... 133 UNIT 10 GLOBAL ISSUES FOR THE 21st CENTURY ........................................................ 143 SUPPLEMENTARY READING ............................................................................................ 157
UNIT 1 ............................................................................................................................................. 157 UNIT 2 ............................................................................................................................................. 164 UNIT 3 ............................................................................................................................................. 172 UNIT 4 ............................................................................................................................................. 176 UNIT 5 ............................................................................................................................................. 182 UNIT 6 ............................................................................................................................................. 187 UNIT 7 ............................................................................................................................................. 194 UNIT 8 ............................................................................................................................................. 198 UNIT 9 ............................................................................................................................................. 206 UNIT 10 ........................................................................................................................................... 208



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