Практикум к Хрестоматии
по менеджменту
PART II
Unit 1. On Management and Managers.
Text 1. What is management?
Nowadays the English word “management” is well known all over the world. It means “управление” in the Russian language. There is the difference between what is meant by “management” and by “administration”. A theorist on management E.F.L Brecht offers the following definition: “Management is a social process entailing responsibility for the effective and economical planning and regulation of the operation of the enterprise”.
Management is both: the skill and the art of directing human activities by the achievement of predetermined goals. It deals with the process of making decisions.
. “Administration” is used in the field of regulation day-to-day operations of any organizational section. It also used to describe the various top functions in public service; it is the part of management and it is rarely taken to be involved in decision policy-making. Finally, it should be noted that “management” and “administration” are in close interrelation.
Management is considered in many aspects: as management, as process, as management organ, as function (activities), as category of people, as science and art.
The purpose of management follows from the main objective of business activity: that is the profit maximization.
But it isn’t the sole management objective.. There is a number of interested parties to formulate the objectives: not only managers and stock holders but also consumers, suppliers, employees etc. Therefore, management must unite the interests of all these groups. So, management objectives can be seen as socio-economic. It is true to say that top managers develop the policy and objectives, according to the accepted firm’s philosophy, so, the agreeing and policy formulating are the important responsibilities of any objective executives.
The objectives represent what a company has to achieve and policy is how to go about achieving them.
In a traditional company there are policy committees: the finance committee, the marketing committee, the personnel committee, the production committee and so on. They coordinate all the efforts for successful policy-making process.
According to Peter Drucker, success is the result of doing the right thing, whereas the effectiveness is caused by doing things right.
Answer the questions to Text 1:
1. What is the difference between what is meant by “management” and by “administration”?
2. Give one of the definitions of ‘management’.
3. In what aspects is “management’ considered?
4. What is the purpose of management?
5. What parties formulate the objectives of business activity?
6. What is the difference between” company objective” and “company policy”?
7. What is the success of business according to Peter Drucker?
Vocabulary to Text 1
1. definition, n C определение
2. enterprise n предприятие
3. entail v влечь за собой, вызывать что-либо
4. responsibility n ответственность, обязанность
5. achievement n достижение, успех
6. deal with иметь дело с ч-л, рассматривать вопрос, решать задачу
7. public service государственная служба, общественная деятельность
8. interrelation n взаимосвязь, взаимоотношения
9. profit maximization максимизация прибыли
10. objective n цель, задача
11. sole adj единственный, исключительный
12. interested parties заинтересованные стороны
Exercises to Text 1
Exercise 1. Match the words in two columns and translate them:
1. social a) executive
2. rapid b) objective
3. organizational c) parties
4. sole d) process
5. accepted e) section
6. main f) interrelation
7. human g) change
8. close h responsibility
9. predetermined i) philosophy
10. important j) activity
11. objective k) factors
Exercise 2 Give English equivalents to the following words and collocation:
1) процесс принятия решений; 2) уточнять, выяснять; 3) повседневная работа, действия; 4) государственная, общественная служба; 5)защищать коммерческие интересы; 6) заинтересованные стороны; 7) скоординировать усилия; 8) процесс выработки политики: 9) быстрое технологическое развитие; 10) цель управления; 11) потребители; 12) важная обязанность.
Exercise 3. Give Russian equivalents to the following words and collocations:
1) to entail responsibility; 2) predetermined goal; 3) to oblige, obligation; 4)subservient; 5) stock holders; 6) to be profitable and successful; 7) to do things right; 8) to take into account; 9) chief executive officer; 10) to deal with; 11) experience.
Exercise 4 Translate into English:
1. Организация – это группа людей, работающих вместе для достижения общей цели.
2. Слово «администрация» также используется для описания различных управленческих функций на высшем уровне в госудаственном секторе.
3. Главная цель коммерческой деятельности = это максимизация прибыли.
4. Руководители высшего уровня должны объединять интересы всех групп людей, участвующих в бизнесе: менеджеров, акционеров, потребителей, поставщиков, служащих компании.
5 Управляющие высшего уровня разрабатывают политику и цели компании в соответствии с философией, принятой в компании.
6. Чтобы быть прибыльной и успешной, любая организация должна иметь конкретные и четкие цели.
Text 2 Strategic management versus operational management
Strategic management is one of the special parts of management. It is aimed at the mission, external environmental problems, long-range planning, people, information technologies, at strategy development and its implementation in the market in the situation of changing environment.
One of the main aims of strategic management is to make people to think efficiently, the essence of its functions is coordination of all individual efforts for the achieving company’s strategic objectives.
As for the five functions of strategic management, they are as follows:
- Strategy planning;
- Organization of strategic plans implementation;
- Coordination of actions by strategic plans implementation
- Motivation by results achieving;
- Control of strategy implementation.
In fact, for any company it is vital to have its strategic vision, so the executives have to answer the basic questions: How do we see our company? What are we going to do and to achieve? In what way can we achieve our objectives?
At first a company conducts the analysis of the environment, formulates its vision, mission and objectives, then it determines its strategic priorities, in other words it forms the mini-strategy of a company (MOS – mission, objectives, and strategic priorities).
The next step is the choice of techniques a company uses to achieve goals. A company determines the chain of actions for its staff for its successful operation.
Taking all these steps into consideration, a company forms the strategic plan, formulates its strategy and starts its implementation. A company, willing to succeed, should analyze and estimate the results of its strategic plan, and include, if necessary, the proper changes in its implementation.
It is well known that company uses the operational management considering the internal resources, but the entire company activity is based on the results of strategic management. Strategic management and operational management can be viewed as the two sides of the same coin. The main differences between them are as follows:
The main goal of a strategic management is the company survival in the long-term perspective, whereas the main task of the operational management is to produce a product and to ensure its profitability.
The strategic management is concerned with the external resources; the operational management is concerned with company’s internal recourses.
The basis of a strategic management includes personnel, information system and market; the basis of the operational management involves functions, organization structure, technologies etc. As it was said above, despite the differences, these two kinds of management are closely connected and necessary; they interact continually.
For the successful running of business, strategic management must be implemented by skilled and professional managers, -
In fact, the quality of company’s activity depends on the professionalism of its managers.
Here is the list of the necessary managerial qualities and competences needed to master the strategic management:
- professional competence;
- good interpersonal and communication skills;
- analytical thinking;
- ability to manage people and time;
- knowledge of foreign languages;
- ability to compete efficiently.
As for a span of control, it refers to the number of subordinates of a manager; six is the optimal number here. Six subordinates can be supervised by a manager most effectively, but it depends on the business situation.
The ability to develop and implement effective strategies, procedures and work processes turned top management into the ruling business class of the 21st century. The traditional economies consider managers become the driving force in a global business environment.
Answer the questions to Text 2:
1. What is strategic management aimed at?
2. What is the essence of strategic management functions?
3. Name five functions of strategic management.
4. What is the ‘strategic vision” of a company?
5. What is the essence of mini-strategy (MOS) of a company?
6. What steps does a company use to achieve goals?
7. What is the difference between strategic and operational management?
8. What does the quality of company’s activity depend on?
9. What qualities and competences does a manager need to master strategic management?
10. What does a “span of control” refer to?
11. Why are managers considered to be a driving force in global business environment?