1. Listen to a description of a graph below and complete the text. Draw the graph.

In 1987 the export figures ____ 400 m Finnish markkaa.

There was a ____ between 1987 and 1989 when figures ____ over 800m.

This was followed by a ____ between 1989 and 1990 when Finnish paper exports to Japan ____ to 400m.

There was a ____ between 1990 and 1991 when exports hit the 450 m mark but they ____ again to 400 m in 1992.

Between 1992 and 1995 there was a ____ and exports of paper to Japan ____ of 1,300 m in 1995, before ____ again to under 1,000 m in 1997.

2. Listen to descriptions of other Finnish exports to Japan, draw the graphs,

complete them and describe.

1. Finland’s wood exports to Japan.

2. Finland’s machinery exports to Japan.

3. Finland’s chemical exports to Japan.

Case study The new Assessment Center: React to the Personnel Director’s report, express your views on the problem of personnel appraisal.

General Plastics PLc is a subsidiary of Northern Oil Products (NOP). Some years ago, the company was in financial difficulties, but things changed when Gerald Harper became Chairman. He introduced a tough, non-nonsense style of management. Some people, such as union officials, didn’t like it, but it paid off. The company is now profitable again.

But there are still some problems left. As the survey conducted recently showed, the company has to do something about its system of promoting staff. Far too often, managers complained that they had been “forgotten” when a position became vacant or sometimes X had been promoted because he was a favorite or protege of Y.

There was one more problem. Many managers were in the wrong job. They were unhappy because they felt they were “square pegs in round holes”- unsuited for the work they were doing. They thought they could have been more effective in other departments, or even in other subsidiaries within the group. Gerald Harper was sure that the Assessment Center could solve all these problems.

Assessment Centers are set up in all the companies. They are places where staff can be evaluated. They are used for selecting, developing and promoting staff. Applicants for managerial positions attend the Centers for a period of time - some days or weeks. They are given psychological and aptitude tests by highly trained psychologists there. They take part in group exercises simulating management situations. Their performance is evaluated by colleagues, and by outside observers such as senior managers from other companies. Finally, they are interviewed in length.

Instructions

A management meeting takes place, chaired by the Director of Personnel. There is one item on the agenda: Progress report on the Assessment Center; members’ views.

Working in groups, play the roles indicated below. At the meeting, give your reactions to the Director of Personnel’s progress report.

Director of personnel

Start by giving a progress report on the Assessment Center. Be positive. The Center has been a great success and is popular with executives. It is particularly useful in identifying staff who can fill higher management positions. It has given staff the opportunity to look at their careers, and to plan their future in the company. In your opinion, all executives must attend the center.

Managing director

You are not so happy about the Assessment Center as you used to be. The report and paperwork connected with it take up a lot of your time. The Director of Personnel and the Training Manager seem to spend most of their time at the Center - they never seem to be available when you want them. Some executives have criticized the Center privately. They hate doing the psychological tests.

General Manager

You think that the Assessment Center is an excellent training facility, although you have never had to attend it personally, for obvious reasons. Try to find the opportunity during the meeting to praise the Director of Personnel for his marvelous idea.

Training Manager

You are in favor of the Assessment Center. Since it was introduced, you have had many new ideas for training schemes and have already arranged useful courses for executives. Many members of staff have praised your efforts. You think that managers – and even ordinary workers - should attend the Center. If that happened, you would be a powerful person in the company.

Financial Director

You are against the Assessment Center. You think it is a waste of time and money. The old system worked well, on the whole. Now, the company has had to hire two psychologists - at great expense. And the Director of Personnel is continually asking senior executives to act as assessors at the Center. You think that the Director of Personnel has introduced the Assessment Center so that he and the Training Manager will have more power and influence.

Senior Executive (Sales) You must attend the Center next month. You aren’t too happy - you hate psychological tests. (Give your reasons)

Company Psychologist

You are in favor of the Assessment Center. However, you feel that the top management - and especially the Chairman - are far too tough. Gerald Harper acts like a dictator, expecting everyone to obey him without question. It is time for the company to be more flexible with staff and treat them as human beings. The management must show that it cares about each and every employee.

Unit 8 Leadership and international business styles

Words to remember:

aspiration (ambition) – стремление, устремление

conviction – убеждённость

empathy – отзывчивость, сочувствие

determination – решимость, решительность

persistence – упорство, настойчивость, настоятельность

crucial – решающий, ответственный, переломный

to excel – превосходить, опережать

to facilitate – способствовать

to reinforce – усиливать, укреплять, подкреплять

foresight – предусмотрительность

to engage in – заниматься, участвовать

Starting up

Work in groups. Each member of the group should choose a famous leader, either living or dead. Say briefly:

- what the leader achieved

- what qualities and abilities the leader has or had

- whether group members think the person they choose was an effective leader

Discuss the following questions.

1. Do the leaders you have described have any common characteristics, e.g. similar qualities, abilities, skills etc ?

2. Are leaders born or made?

Reading

You will read the text about the importance of leadership and different leading styles

Leadership is needed in all levels of organization. It is likely, however, that the leadership qualities required by a supervisor or manager are not the same as those required by the chief executive of a company. It is, therefore, difficult to define leadership satisfactorily.

A typical definition is that the leader “provides direction and influences others to achieve common goals”. This is true in the case of supervisors and managers, but is it a good definition of the leader of an organization? A chief executive must indeed give “direction” but he must do much more than that. He has to create “a sense of excitement” in the organization, and convince staff that he knows where the business is going. In addition he must be a focus for their aspirations. As Peter Drucker says, “Leadership is the lifting of a man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations”

When psychologists and other researchers first studied leadership, they tried to find out if leaders have special personal qualities or skills. They asked the question: Were there specific traits which made leaders different from other people? The following personal qualities used to be considered important for success as a leader: aspiration, adaptability, common sense, enthusiasm, diplomacy, empathy, knowledge, emotional balance, control, originality, creativity, self-confidence, foresight, risk-taking ability, integrity, determination, achievement drive, desire to excel, drive for responsibility, task orientation (interest in work), sociability, flexibility, team-building ability.

However, as early as the 1950s, the ‘trait’ approach to leadership had become discredited. It is generally agreed now that you cannot say a person is a leader because he/she possesses a special combination of traits. All you can say is that some qualities, like above-mentioned intelligence and decisiveness, are often associated with leaders.

Leadership style can be considered as the way we come across to others when we attempt to influence. A practical way to describe leadership styles is the extent to which directive and supportive behaviors are used.

Directive behavior is the degree to which the leader explains, in specific term, what to do, when and where to do it, how to do it (with as much detail as needed), and who is responsible. In directive behavior communication is primarily one-way and focuses on the other’s duties and responsibilities.

Supportive behavior is the extent to which the leader sets positive expectations, encourages, listens to, praises and helps facilitate the thinking of others. In supportive behavior the flow of communication is primarily two-way. Combining varying degrees of directive and supportive behavior produces four distinct leadership styles.

Style 1 – Directing

The ‘directing’ style is characterized by explaining, demonstrating and giving feedback on performance. Support consists of setting positive expectations and providing enough two-way communication to ensure that directions are clear and feedback is understood.

Style – 2 - Guiding

The ‘guiding’ style is characterized by coaching and instruction. It is quite similar to style 1 in terms of structure. The distinction is in the highest amount of supportive behavior provided by the leader to develop in-depth understanding and skill through practice and positive feedback. In style 2 the leader engages in more listening and discussion.

Style 3 – Participating

The ‘participating’ style is characterized by encouragement and reinforcement.

When using this style the leader does not ‘tell’ or ‘direct’ the other person. Instead, the leader shares responsibility for decision-making.

Style 4 – Delegating

The ‘delegating’ style is characterized by a more “hands-off” approach that gives the other person opportunity to make and implement decisions. Of all the styles, Style 4 is the least structured, where supportive behavior is used to reinforce and reward the person for achieving intended results.

All styles of leadership could be effective in appropriate situations. There is no best style for all situations. Effective leadership depends on matching the leader to the task and the situation. But it’s evident that effective leadership is a crucial factor in organizations’ success.

Comprehension / interpretation

1. Why is it difficult to give the exact description of leadership?

2. Do you agree with Peter Drucker’s definition of leadership?

3. Why did the assumption that ‘there were some specific traits which made leaders different from non-leaders’ fail?

4. What practical way of describing leadership is suggested?

5. Do you agree that directive behavior is primarily one-way communication?

6. Do you agree that supportive behavior is primarily two-way communication?

7. Assess the advantages of the leadership styles mentioned in the text.

Language focus