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ciently and effectively. Management 2. ____ planning, organizing, staffing, leading or directing, as well as controlling an organization to accomplish the goal. Resourcing 3. ____ the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Management is often 4. ____ as a factor of production as it brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They 5. ____ these resources for achieving the objectives of the organisation such as high sales, maximum profits, business expansion, etc. Practice of modern management 6. ____ from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478–1535). Management 7. ____ of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy.

MANAGEMENT STYLES

By Lawrence Robinson, Jean Segal and Robert Segal

Management styles are characteristic ways of making decisions and relating to subordinates. Management styles can be categorized into two main contrasting styles, autocratic and permissive. Management styles are also divided in the main categories of autocratic, paternalistic, and democratic. This idea was further developed by Robert Tannenbaum and Warren H. Schmidt (1958, 1973), who argued that the style of leadership is dependent upon the prevailing circumstance; therefore leaders should exercise a range of management styles and should deploy them as appropriate.

Autocratic

An autocratic management style is one where the manager makes decisions unilaterally, and without much regard for subordinates. As a result, decisions will reflect the opinions and personally of the manager, which in turn can project an image of a confident, well managed business. On the other hand, strong and competent subordinates may chafe because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines", and turnover among the best subordinates will be higher.

There are two types of autocratic leaders:

–a directive autocrat makes decisions unilaterally and closely supervises subordinates;

–a permissive autocrat makes decisions unilaterall y, but gives subordinates latitude in carrying out their works.

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Consultative

A more paternalistic form is also essentially dictatorial. However, decisions take into account the best interests of the employees as well as the business. Communication is again generally downward, but feedback to the management is encouraged to maintain morale. This style can be highly advantageous when it engenders loyalty from the employees, leading to a lower labor turnover, thanks to the emphasis on social needs. On the other hand for an autocratic management style the lack of worker motivation can be typical if no loyal connection is established between the manager and the people who are managed. It shares disadvantages with an autocratic style, such as employees becoming dependent on the leader.

A good example of this would be David Brent or Michael Scott running the fictional business in the television show The Office.

Persuasive

A persuasive management style involves the manager sharing some characteristics with that of an autocratic manager. The most important aspect of a persuasive manager is that they maintain control over the entire decision making process. The most prominent difference here is that the persuasive manager will spend more time working with their subordinates in order to try to convince them of the benefits of the decision that have been made. A persuasive manager is more aware of their employees, but it wouldn't be correct to say that the persuasive style of management is more inclusive of employees.

Just as there are occasions where the use of an autocratic management style would be appropriate, there are also instances where a company will benefit from a persuasive management style. For example, if a task that needs to be completed but it is slightly complicated it may be necessary to rely upon input from an expert. In such a situation, the expert may take time to explain to others why events are happening in the order in which they will occur, but ultimately the way in which things are done will be that person's responsibility. In those circumstances, they are highly unlikely to delegate any part of the decision making process to those who are lower down in the hierarchy.

Disadvantages to a persuasive style of management

1. There may not be enough or even an entire lack of support from employees for management. Seeing as how the employees will have no input into the decision making process, they also may not trust the decisions that are made.

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2.A system that has no input from employees minimises access to one of the most valuable resources that a business has; the ideas of the people who are working on the "front line". As a result, employees will show no initiative, which can reduce productivity.

3.One-way communication models are unlikely to be effective when compared to two-way communication.

Democratic

In a democratic style, the manager allows the employees to take part in deci- sion-making: therefore everything is agreed upon by the majority. The communication is extensive in both directions (from employees to leaders and vice-versa). This style can be particularly useful when complex decisions need to be made that require a range of specialist skills: for example, when a new ICT system needs to be put in place, and the upper management of the business is computer-illiterate. From the overall business's point of view, job satisfaction and quality of work will improve, and participatory contributions from subordinates will be much higher. However, the decision-making process could be severely slowed down unless decision processes are streamlined. The need for consensus may avoid taking the 'best' decision for the business unless it is managed or limited. As with the autocratic leaders, democratic leaders are also two types i.e. permissive and directive.

Chaotic

A very modern style of management, chaotic management gives the employees total control over the decision making process. Some modern companies have adopted this style of management and in return have become some of the most influential and innovative such as Google.

Laissez-faire

In a laissez-faire leadership style, the leader's role is as a mentor and stimulator, and staff manage their own areas of the business. Thus it is only successful with 1) inspirational leadership that understands the different areas of initiative being taken by subordinates, and 2) strong and creative subordinates who share the same vision throughout the organization. It is a style that is best for strong, entrepreneurial subordinates in an organization with dynamic growth in multiple directions. This style brings out the best in highly professional and creative groups of employees; however in cases where the leader does not have broad expertise and ability to communicate a strong vision, it can degenerate into disparate and conflicting activities. Lacking a strong maestro as leader, there is a risk in both focus and direction.

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MBWA

Management by Walking Around (MBWA) is a classic technique used by managers who are proactive listeners. Managers using this style gather as much information as possible so that a challenging situation doesn't turn into a bigger problem. Listening carefully to employees' suggestions and concerns will help evade potential crises. MBWA benefits managers by providing unfiltered, real-time information about processes and policies that is often left out of formal communication channels. By walking around, management gets an idea of the level of morale in the organization and can offer help if there is trouble.

A potential concern of MBWA is that the manager will second-guess employees' decisions. The manager must maintain his or her role as coach and counselor, not director. By leaving decision-making responsibilities with the employees, managers can be assured of the fastest possible response time.

One downside is that MBWA poses the threat of the manager losing authority as the employees feel that they can run the business.

Paternalistic

An autocratic style means that the manager makes decisions unilaterally, and without much regard for subordinates. As a result, decisions will reflect the opinions and personality of the manager; this in turn can project an image of a confident, well managed business. On the other hand, strong and competent subordinates may chafe because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines", and turnover among the best subordinates will be higher.

Asian paternalistic

Like consultative and easily confused with autocratic and dictatorial; however, decisions take into account the best interests of the employees as well as the business, often more so than interests of the individual manager. Communication is downward. Feedback and questioning authority are absent as respect to superiors and group harmony are central characteristics within the culture. This style demands loyalty from the employees, often more than to societies' rules in general. Staff turnover is discouraged and rare. Worker motivation is the status quo with East Asians often having the world's highest numbers of hours worked per week, due to a sense of family duty with the manager being the father, and staff being obedient children, all striving for harmony, and other related Confucian character-

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istics. Most aspects of work are done with a highly collectivist orientation. It shares disadvantages with an autocratic style, such as employees becoming dependent on the leader, and related issues with seniority based systems.

An Asian Paternalistic style means that the manager makes decisions from a solid understanding of what is desired and best by both consumers and staff. Managers must appear confident, with all answers, and promote growth with harmony, often even if hiding harmful or sad news is required.

Read the text and answer the following questions.

1.What, according to some authors, determines the choice of management style?

2.In what way can the autocratic style contribute to the work-process? What is its disadvantage?

3.Is the consultative style of management more effective when the employees are loyal to their senior? Why or why not?

4.Name the principal difference between the purely autocratic and persuasive style of management? Which do you consider more effective? Explain your answer.

5.Which of the two types of democratic leader is closer to the dictatorial style?

6.Do you think it more appropriate to employ the chaotic management style in a designer workshop or at a brick factory? Why?

7.What can go wrong with the lassez-faire style of management? Under which circumstance does that usually happen?

8.How can a MBWA manager predict his subordinates'decisions?

9.What metaphor does the author use to explain the Asian paternalistic style of management?

Vocabulary and Language Practice

1.Look up the meaning of the words given in the text in bold in a British English dictionary and use them in sentences of your own.

2.Find English equivalents of the following words and expressions in the text; give the context: подчиненный, подчиненное лицо; преобладающий, получивший широкое распространение, общепринятый; по собственной инициативе, в одностороннем порядке, самостоятельно; личность, индивидуальность; текучесть кадров; контролировать; повелительный, диктаторский; ответная реакция, взаимодействие; ободрять, воодушевлять, вдохновлять, поддерживать; моральное состояние, боевой дух, дисциплина; верный, преданный; профессионализм, компетентность; ухудшаться, портиться; вымышленный, выдуманный; включающий, объединяющий; максимально сократить;

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содействие, вклад; способный думать наперед, прогнозирующий ситуацию, продуктивный; старшинство (по положению или возрасту).

3. Translate the following word combinations and sentences.

A.with regard to; limit on/to; reflect smth.; lead to; be dependent on; in turn; be typical; in general; as respect to; be confused with; as a result; on the one/other hand.

B.1. My present job doesn't really allow me fully to deploy my skills. 2. She has considerable expertise in logistics. 3. Streamlining cars increases their fuel efficiency. 4. The cost-cutting measures include streamlining administrative procedures in the company. 5. The equipment works more effectively if it is maintained properly. 6. Were you aware of the risks at the time you set up your own business?

7.The managing director unilaterally made her decision to introduce fixed working hours. 8. The lower tax rate is particularly advantageous to less wealthy families.

9.He says he'll tell the supervisor about my late arrival at workplace but it's just an empty threat. 10. We have been chafing under petty regulations for too long.

11.The thought of how much work she had to do discouraged her. 12. Educational standards are degenerating year by year because of a lack of funds. 13. I feel as if I've accomplished nothing since I left my job. 14. She accomplished such a lot during her business trip to Prague. 15. The country's economy is on a downward spiral. 16. The business has an annual turnover of £50,000. 17. The large number of temporary contracts resulted in a high turnover of staff. 18. The rules are rather complicated to follow. 19. He can't evade doing his duties forever. 20. The company strove for a balance of payments.

4. Complete the sentences with a suitable preposition.

1. The Bank ____ England has raised interest rate recently. 2. Last year’s deficit was close ____ 25 billion pounds. 3. The factory has doubled its output ____

last six months. 4. Coal mining industry is a primary industry involved ____ the production of raw materials. 5. Automation can be a mixed blessing – machines usually tend to be ____ ____ order when you need them most. 6. Service industries have become more important ____ the last decade. 7. The state has a monopoly

____ tobacco trade. 8. Workers ____ nationalized industries are to get a 3 % pay rise. 9. Figures ____ unemployment are rising. 10. Money raised ____ taxation pays ____ all government services. 11. Oil is key industry which is essential ____

country’s economy. 12. The government is trying to decrease inflation ____ 3 %.

13.She pays income tax ____ the lower level. 14. VAT ____ Britain currently runs

____ 17.5 %. 15. The difference ____ value ____ a country’s import and exports is called GNP deficit.

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5. Read the text and fill in gaps with one of the words or expressions from

the box.

managers process division environment activity continuous perform responsibility prevent work importance encourage delegate survive conclusions all times productivity tricked failure superior replace aspirations innovative ownership knowledge decisions objectives qualified conducts institutions

Fourteen Important Features of Management

1. Management is a ____ which includes four main functions, viz., planning, organising, directing and controlling. The manager has to ____ these functions continuously. Therefore, management is a ____ and never ending process. 2. The ____

do not do the work themselves. They get the ____ done through the workers. The workers should not be ____, threatened or forced to do the work. Therefore, a favourable work ____ should be created and maintained. 3. Management is result oriented because it gives a lot of ____ to "results". Management always wants to get the best results at ____. 4. Management has to get the work done through people. This is a very difficult and complex job to manage people because different people have different emotions, feelings, ____, etc. Similarly, the same person may have different emotions at different times. Because of that management uses ____ from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature. 5. Management is not an individual but a group ____. It uses group (employees) efforts to achieve group (owners) ____. It tries to satisfy the needs and wants of a group (consumers). 6. Management follows established principles, such as ____ of work, discipline, unity of command, etc. These principles help to ____ and solve the problems in the organisation. 7. Nowadays, all managers use computers. Computers help the managers to take accurate decisions. However, computers cannot ____ management. This is because management takes the final ____. Thus Management is aided but not replaced by computers. 8. Management makes plans, policies and ____ according to the situation and changes its style according to the situation. The manager first studies the full present situation, then he draws ____ about the situation and finally he makes plans, decisions, etc., which are best for the present situation. This is called

Situational Management. 9. Management need not be an ownership. In small organisations, management and ____ are one and the same. However, in large organisations, management is separate from ownership. The managers are highly ____ professionals who are hired from outside. The owners are the shareholders of the com-

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pany. 10. Management is both an art and science. Management is result-oriented. Therefore, it is an Art. Management ____ continuous research. Thus, it is also a Science. 11. Management is necessary for running a business. It is also essential for running business, educational, charitable and religious ____. Management is a must for all activities, and therefore, it is all pervasive.12. Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results. The success or ____ of management can be judged only by its results. If there is good discipline, good ____, good profits, etc., then the management is successful and viceversa. 13. Managers use a professional approach for getting the work done from their subordinates. They ____ authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also ____ subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the ____. 14. Management is dynamic in nature. That is, management is creative and ____. An organisation will ____ and succeed only if it is dynamic and continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc.

Vocabulary: Phrasal verbs

Complete the following phrasal verbs with a preposition(s) or particle(s) from the box. The meaning of the phrasal verb is given in brackets at the end of each sentence in italics.

on up with out forward behind off to down into over

1. The committee members fell ____ over plans for the new health center (argued). 2. They refused to face ____ their responsibilities with disastrous consequences. (accept an unpleasant state of affairs, try to deal with it). 3. The executive manager decided to call ____ his visit to France. (not to go ahead with something). 4. Top managers of our company can always count ____ support from their employees. 5. Many developing businesses are failing to catch ____ their more successful rivals (get to the same level). 6. It can take months or even years for business scandals to die ____ (become less strong). 7. Major international companies can’t figure ____ the popularity of anti-capitalist movement (find to it hard to understand). 8. If they examined the issues more closely, they would find ____ the reasons for changes. 9. Salaries very rarely keep ____ the cost of living (rise at the same speed as). 10. The latest Avicenna report leaves ____ the reasons for demographic shifts (does not include). 11. It does point ____ the mistakes made by the agency over the last few years (show). 12. Before you write your report, you

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should look ____ sales figures (research). 13. Many employees carried ____

working despite pressure from the unions (continued). 14. Once people fall ____

with their mortgage payments, they come under extreme financial pressure from their bank (become late). 15. During the 1990s, a lot of hospitals were taken ____

by private trusts (become controlled by another organisation). 16. When the computer technology fails us, we have to do ____ more primitive methods. They’re called ‘pen and paper’ ( use something because there is nothing else available). 17. It is becoming more common for companies to cut ____ perks and bonuses (reduce). 18. At the last meeting the financial director put ____ the arguments in favour of reducing product costs (suggest or state the case for something).

6. RISK MANAGEMENT

Lead-in:

1.What is risk in business?

2.What are kinds of risk companies may face in their business activity? Give examples.

3.What are internal risks and do they affect?

4.What is risk management?

5.What is a Risk Management Committee?

6.What are the core responsibilities of a Risk Management Committee?

Complete the text with the words from the box. You need to change the form

of some words.

All industries 1.____ the need for change at some point or another. Furthermore, changes to products, processes, and regulations are not 2.____ – one impacts the other. Add to this an increasing oversight on compliance regulations and standards and it’s easy to see how complexity increases, whether in quality management or general compliance.

A company needs to 3.____ the effects of change on both quality and compliance as it grows; however, there is often a disconnect in how the compliance function is organized once a company 4.____ in complexity. Whether a company is domestic or international, it 5.____ regulations at both a local level and national level. These vary by country and region, and to 6. ____ matters, the regulations are

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forever changing and shifting. Organizations need to 7.____ quality and compliance is met as they roll out new processes and products.

Companies are looking for new ways to 8. ____ their compliance and keep up with the pace of business. Risk management is becoming that benchmark. Risk management 9. ____ a systematic method for identifying hazards, 10. ____ and measuring the risk of those hazards, and taking appropriate action based on the risk. Risk management is a universal language that is common for all levels of compliance. It provides an objective and systematic method of filtering and prioritizing adverse events, and 11. ____ the speed and quality of decision-making capabilities.

The Bowtie risk model in particular is an effective risk tool for assessing risk in low-occurrence events. It’s 12. ____ Bowtie because it’s shaped a bit like a bow tie. The knot is the undesired event with threats and preventive controls fanning out to the left, and recovery controls and consequences fanning out to the right. It’s beneficial because your company may have little data on potential critical events, but the undesired effects of these events are so catastrophic that you can’t 13. ____

not having controls in place.

The Bowtie is a proactive risk assessment tool that looks to 14. ____ risk before it happens. It builds out a scenario in which an adverse event might 15. ____

and puts preventive controls in place to mitigate the risk of that event actually happening. Similarly, it also 16. ____ out recovery controls to 17. ____ the impact in case the event does occur.

Companies use the Bowtie risk model to 18. ____ themselves from events that they do not have enough historical data on, but need to 19. ____ sure that they are 20. ____ from both a preventive standpoint and recovery standpoint.

INVESTORS MUST PREPARE FOR WORST CASE SCENARIOS

By Mina Toksoz, from “The Financial Times”

In today’s international environment, investors need to be prepared for worst case scenarios becoming the base case. Political risk is now more complex and multidimensional, requiring wider policy analysis. In addition, geopolitical risk has risen because of current international global conditions. Political risk is difficult to predict.

In Why Nations Fail, a study of institutional development, authors Daron Acemoglu and James Robinson speak of critical junctures in history when the social, political and institutional trajectory of a country is interrupted and it shifts.

Usually, it is only possible to identify a critical juncture after it occurs. This was the case with the overthrow of long-term autocrats in Tunisia, Egypt and Libya in 2011. Many analysts understood that these regimes were unsustainable and that

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