Working on the text.

Ex.1. Read and translate the text paying particular attention to the words in italics. Use a dictionary if necessary.

Organizational Structure

Management includes those personnel who have the right to make decisions that affect company's affairs. Organization is the means by which management coordinates the efforts of employees to attain the company's objectives.

Organization involves structure. An organizational structure is a framework enabling management to delegate and control the responsi­bilities of individuals and departments. In this way, a company can function as a unit with the same efficiency as a business run by one person.

Once organizational structure has been established, areas (and sub-areas) of activities, levels of authority, and duties must be clearly de­fined.

Yet with this structure, allowance must be made for initiative. Good management permits employees (and managers) to grow accord­ing to individual abilities. This is a valuable asset to a company in that individual talents contribute to organizational growth. Where workers feel they are mere cogs in a wheel*, their morale falls and their work efficiency decreases, and the firm loses the benefits it might have oth­erwise derived from its employees.

Thus, communication is of great importance in organizational structure. A smooth, two-way flow (from management to employees and from employees to management) ensures efficient functioning through feedback, suggestions, and grievances.

Levels of Management

There are three management levels: top management, middle man­agement, and operating management. Top management includes the president, vice presidents, and the general manager. Middle manage­ment includes department managers, plant managers, and production superintendents. Operating management includes supervisors, foremen, etc.

Decision Making

The most important responsibility of a manager at any level is de­cision making. (It is often said that decisions are the motor of busi­ness.) Successful management is a matter of skill in choosing from al­ternatives.

Decision making can be broken down into five components: (1) recognizing the problem, (2) defining and analyzing the problem, (3) evaluating alternative solutions, (4) choosing the most favorable solution, and (5) implementing the approach chosen.

* cogs in a wheel - зубцы колеса (мелкие сошки, винтики)

Ex.2. Say what you have learned about:

1. the relations between management and organization;

2. the efficiency of running a company;

3. the importance of providing an allowance for initiative.

4. the number of management levels;

5. the main components of decision making.

Ex.3. Think and answer.

1. How can a firm derive benefits from its employees?

2. Do all businesses require three levels of management? Why?

Ex.4. a) Read the text. Insert the words from the ones given below.

Strategic planning includes defining the company's long-term as well as specific …, such as sales volume, market share, profitability and innovation, and deciding on financial, material and other resources necessary to achieve them.

In problems of market … and product planning one of the key concepts is that of the Product Life Cycle. That products pass through … stages between life and death (introduc­tion — growth — maturity — decline) is hard to deny. Equally ac­cepted is the understanding that a company should have a mix of products with … in each of these stages. Companies can make far more … marketing decisions if they take time to find out where each of their products stands in its life cycle.

However, the concept of the product life cycle seems fre­quently forgotten in marketing planning, which leads to wrong ….

(effective, selection, representation, decision-making, objectives, various.)

b) Say what information the text gives about:

a) strategic planning;

b) the concept of the Product Life Cycle.

Ex.5. a) Supply the articles where necessary.

... important changes in ... demand for ... particular products and ... services are continuously occurring.... management should respond to ... such changes. To be successful it is necessary to understand and learn how to use... effective marketing tools.

... advertising, ... trade shows, ... service activity, ... pricing, ... packaging, etc. in combination produce ... sales, and are usually referred to as ... kind of ... marketing mix. ... objective of ... business is to find ... marketing mix which at... given point of ... time will prove to be profitable.

2. Answer the questions:

1. What is the marketing mix?

2. In what way should management respond to changes in market demand?

Lesson 2

Unit 1

SUBJECT for STUDY: Management .