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outstanding new ideas. Companies send a detailed product description and a marketing plan, and the four best proposals are selected. These companies then present their product concepts to a panel of judges. The presentations and awards are televised and the event is broadcast worldwide.

Task

Your company is competing for the ILA’s top prize. You believe that you have an outstanding idea for a new leather product. Prepare your product presentation and present it to the rest of the group. It will be an advantage if a company can offer a product showing a new use for leather. Product concept should be creative and have excellent sales potential. Answer any questions they may have, When you are not making presentation, you are a member of the judged panel. Decide who should get top prize.

Guidelines for presenters

1.Introduce your team. Outline the structure of you presentation.

2.Describe the product design, features and consumer benefits.

3.Describe the product’s target market.

4.Mention other competing products.

5.Present your strategy for the new product. For example:

*branding, packaging, other product features (guarantee, durability, etc) *pricing strategy

*distribution (What sales outlets will be used?)

*promotion (What advertising, product launch and sales promotion?) 6. Describe any ideas for television or radio commercials.

The words below can be used to describe inventions or new ideas. Some of them have a positive meaning, others have a negative meaning.

Unit 7 Motivation and performance appraisal

Words to remember:

to treat employees – обращаться со служащими ingenious – гениальный, хитроумный ingenuity – изобретательность

inherent dislike of – врождённая нелюбовь (неприязнь) к to coerce – принуждать, заставлять

to assume – предполагать

to perform to maximum potential – работать с максимальной отдачей to sustain life – поддерживать жизнь

context – контекст (окружение) content – содержание

repetitive job – рутинная работа

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affiliation – принадлежность esteem – уважение, почёт

Starting up

Which of the following statements seem to you to be generally true? Why?

1.People dislike work and avoid it if they can.

2.Work is necessary to people’s psychological well-being.

3.People avoid responsibility and would rather be told what to do.

4.People are motivated mainly by money.

5.Most people are far more creative and ingenious than their employers realize.

6.People are motivated by anxiety about their security.

7.You can only motivate people by providing them with appropriate incentives (rewards).

8.People want to be interested in their work and, given the right conditions, they will enjoy it.

9.Under the right conditions, most people will accept responsibility and

want to realize their own potential.

Reading 1.

There are two different ways in which employers can treat their employees. Douglas McGregor, a well-known American theorist of the psychology, summarized these two approaches and named them Theory X and Theory Y.

.

In The Human Side of Enterprise, Douglas McGregor proposed two different sets of assumptions about what motivates people, which he called Theory X and Theory Y.

Theory X is a pretty gloomy view of human nature, while Theory Y is a more optimistic view. In brief, Theory X is the traditional approach to workers and working which states that the average human has an inherent dislike of work, will avoid it if he can at all costs. Because of their dislike of work most people must be coerced, controlled, directed and threatened with punishment (for example, with losing their job) to get them to make any effort at work. Theory X assumes that most people are incapable of taking responsibility for themselves and have to be looked after.

Theory Y, on the contrary, is the sunny, optimistic view of people, and the one which best characterizes human nature. At least for a substantial majority of the population, Theory Y states that most people will devote their energies to work as long as certain conditions are met. Firstly, they need set objectives and get

rewards for achieving them; secondly, they need responsibility; and thirdly, they need opportunities to apply their imagination, creativity and ingenuity to solve organizational problems. So, under the right circumstances, people want to work, are eager to work, derive satisfaction from work, and are good at work. Besides, they need achievements and responsibilities.

Pre-listening activity

One of the most important functions of a manager is to motivate the employees. But how? What kind of things motivate you? Which of the following factors have been or will be important for you in your choice of a job?

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Classify them in order of importance:

-good administration and good labour relations

-good working conditions: enough space, light, heat and time, not too much noise, and so on

-an adequate wage or salary, and benefits such as paid holidays, sick pay, a pension, and so on

-job security

-a challenging, interesting and creative job

-responsibility

-contact with people

-opportunities to travel

-opportunities for promotion

-long holidays

Listening

James Lee Broadacre has had a successful career in manufacturing. In this informal discussion he talks about his life philosophy with colleagues.

As you listen, list the eight factors that have motivated Lames during various stages in his life and number them.

Reading 2.

You will read the text about two approaches to how people are motivated.

The work of managers is to ensure that staff work efficiently in an organization. They must know what motivates people. By understanding the factors influencing motivation, they can create the conditions in which employees will perform to their maximum potential.

Abraham Maslow, an American psychologist, put forward one of the best-known theories of motivation. In his theory, he presents a hierarchy of needs. He identified certain basic human needs and classified them in an ascending order of importance. Basic needs were at the bottom of the hierarchy, higher needs at the top: physiological, security, social, esteem, self-actualization.

Physiological needs These were things required to sustain life like food, water, air, sleep etc. Until these needs are satisfied, Maslow believed, other needs will not motivate people.

Security needs They are the needs to be free from danger, physical pain and loss of a job. They include the need for clothing and shelter.

Social needs A human being needs to belong to a group, to be liked and loved, to feel accepted by others and to develop affiliations.

Esteem needs After people have satisfied their social needs, they want to have selfrespect and to be esteemed by others. They have a need for power, status respect and self-confidence.

Self-actualization needs These are the highest needs, according to Maslow. They are the desire to develop to maximum potential and to achieve one’s goals.

Maslow said that people satisfied their needs in a systematic way. When a need had been met, it stopped being a motivating factor. For example, if a person was starving,

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he would not be too concerned about security and social needs. But once he had enough food, he would start thinking about those other needs.

Research into Maslow’s theory has not been very conclusive. Studies showed that needs vary greatly among individuals. At the higher levels in a company, selfactualizing needs may be very strong whereas at lower levels, social and security needs may be dominant. As a manager it is helpful for you to know where each of your team member’s needs are on the ladder.

Another theory of motivation, which has been very popular with managers, is

Frederick Herzberg’s “two factor” theory. Herzberg conducted a number of studies in the late 1950s. He concluded that at work there are certain factors which cause job satisfaction while others lead to dissatisfaction.

The group of factors bringing about satisfaction were called “motivators”. They include things like a challenging job, responsibility, advancement, recognition etc. These factors give rise to positive satisfaction. Herzberg called the other group of factors “hygiene” or “maintenance” factors. These include company policy and administration, salary and fringe benefits, job security, status and personal life. These factors are considered to be only “dissatisfiers”, not motivators. If they do not exist, they cause dissatisfaction. If they do exist in quality and quantity, they do not, however, give increased satisfaction.

Herzberg’s two-factor theory is shown in the following diagram. It is worth noting that the hygiene factors refer to the context of the job – the conditions of work – while the motivators refer to job content.

Hersberg’s motivation-hygiene theory

motivators – achievement, challenging work, the work itself, career prospects, responsibility, recognition.

hygiene factors – company policy and administration, salary and fringe benefits, quality of supervision, relationships with colleagues, job security, status, personal life, work conditions.

Hygiene factors are essential if workers are to be motivated. They mostly deal with the question: ”Why work here?” The motivators deal with the question: ”Why work harder?”.

If Herzberg theory is true, it means that managers must pay great attention to job content. Even with the development of computers and robotics, there are and always will be plenty of boring, mindless, repetitive and mechanical jobs in all sectors of the economy, and lots of unskilled people who have to do them. So managers must find ways of making jobs more challenging and interesting.

One solution is to give people 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.

Sweden has been leading in motivating people. At one car plant, for example, Volvo workers assemble the whole of a car rather than do a few simple operations. In a glass factory, production workers have complete control over the work process in the

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grinding and polishing department. Other workers have helped to build and design paper mills.

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.

Comprehension / interpretation

Decide whether the following statements are true or false. Give detailed answers.

1.According to Maslow people are not concerned about achieving their personal goals in life unless they have satisfied their physiological needs.

2.Senior managers who want to become company directors have self-actualization needs which they wish to satisfy.

3.Herzberg, like Maslow, believes that people satisfy their needs systematically.

4.Herzberg believed that workers would not necessarily work harder if they earned more money.

5.Job security is one of the most important factors which motivates employees.

6.People are more and more concerned about the importance of a company’s shared values or corporate culture.

Language focus

1. Match up the words on the left with their definitions on the right.

2. Opposites

Complete the following sentences with words opposite in meaning to the words in italics. Use prefixes: in, ir, un, dis

3.Read the following guidelines for managers. Agree with them and say why.

While motivating people working under you:

1.reward only that which you intend.

2.be specific about the criteria the reward hinges on.

3.allow for people wanting different rewards – individualize as far as possible.

4.find out what people really want.

5.make sure goals are attainable.

6.ensure a clear link between performance and rewards.

4.Which of the words below can describe possible indicators of:

5. Translate the following sentences into English

1.Мотивация – это внутренняя сила, побуждающая людей работать для достижения целей организации, тем самым удовлетворяя личные потребности.

2.Задача руководителя (менеджера) состоит в том, чтобы создать возможности для служащих удовлетворять их потребности в полной мере в качестве вознаграждения за их работу и мастерство.

3.Фредерик Тейлор полагал, что служащие работают только за деньги, и он доказывал, что оплата должна быть связана с производительностью. Теория Тейлора породила сдельную систему оплаты труда (piece payment).

4.Теория Дугласа МакГрегора основывалась на концепции о том, что работники могут вести себя как ответственные члены организации, когда им ясно, что осуществление организационных целей принесёт им личные выгоды.

5.Это приводит к преданности и верности фирме и к общему желанию хорошо выполнять работу.

6.Абрахам Маслоу предполагал, что люди стремятся осуществить пять основных потребностей: физиологические потребности, потребности в безопасности, социальные потребности (принадлежность к социальной группе), потребности в уважении и признании заслуг, потребности в самореализации.

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Reading 3.

You will read the text about some forms of performance appraisal of employees.

Most organizations have some form of performance appraisal of their employees. The appraisals are usually carried out once a year. The manager makes an evaluation of the performance of the subordinate. This involves finding out a form or writing a report on the person concerned. After this, there is a meeting at which the two parties discuss the appraisal. A performance appraisal is, then, a judgment on how well a person is doing his work.

Appraisals help organizations to reward staff properly. They are useful when decisions have to be made about salary increases and bonuses. In addition, they are needed when managers are considering transferring or promoting staff. In these situations, they provide up-to-date information about an individual’s performance, skills and career objectives.

An important purpose of appraisals is to give the subordinate feedback on how he is performing. The manager can talk to the subordinate about the strengths and weaknesses of his performance. He can also discuss how the subordinate can learn to work more effectively.

At appraisal interview, subordinates can not only talk about their future, but also seek guidance from the manager. The interview may help them to think more realistically about their goals. Besides doing this, it gives the subordinate the opportunity to ask the manager for further training.

There are many methods of evaluating a person’s performance at work. Some of the better-known methods are described below.

A traditional method has been to give a “rating”. The subordinate’s evaluation is based on traits – qualities - that he shows in his work. Subordinates are judged on such things as: knowledge of the job, reliability, cooperation, initiative, quality of work, sense of responsibility, productivity and punctuality.

The manager rates the subordinate by marking a letter or figure on a scale. For example, the rating could be A-E, where A indicates outstanding and E - unsatisfactory.

However, the most popular form of appraisal, in Britain and the United States, is

Management by Objectives. This appraisal is based on a person’s performance, and how well he is achieving his goals. The manager and the subordinate agree on a certain number of objectives, which should be achieved in a given period of time. The focus is on results, not personality traits. The subordinates can be judged on such things as: number of sales calls, number of new customers contacted, number of wholesalers stocking new product, sales of product, customer complaints, service calls, etc.

Another appraisal method is worth mentioning too. This is the Critical Incident Method. With this system, the manager keeps a record of good and unsatisfactory examples (incidents) of a person’s work. These are kept in a file and reviewed with the manager when the interview takes place. An advantage of the system is that the manager has to think about the subordinate’s performance throughout the year. Furthermore, specific examples of the person’s work can be looked at and discussed at the appraisal interview.

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In spite of the need for performance appraisals, people do not like them. Many managers see appraisals as their most unpleasant duty and those who are appraised rarely have a good word to say for the system used by their organization. One problem is that the manager is expected to criticize the subordinate and to give guidance at the same time. However, it is not easy for a manager to combine those roles. Many people are naturally suspicious of appraisals. They think managers are trying to find out their weaknesses, so they are on the defensive. Moreover, managers are often unwilling to say that a subordinate’s performance has been “outstanding” or “bad”. So, the individual is described as being “just above average”. This means that high fliers in the organization do not get a good enough evaluation while the work of poor performers may be over-valued. Finally many managers do not like to criticize, in writing, a subordinate with whom they are working closely, day-to-day.

Appraisal can be a valuable process. At the interview, the manager should act as a guide to the subordinate, not as a judge. The purpose of the interview should be to discuss how the individual can “grow” in the organization, and make an effective contribution. The situation allows both parties to review the work of the individual, fix realistic targets, and plan that person’s career development.

Comprehension / interpretation

1.What is performance appraisal?

2.Why do organizations carry out appraisals?

3.What is the main purpose of any appraisal?

4.What is the main difference between the rating and the Management by Objectives methods of appraisal?

6.If the Critical Incident Method is used, what does the superior have to do before the performance appraisal interview takes place?

7.Why do some people think that the Critical Incident Method is fairer than the others mentioned?

8.Why do very good employees often complain about their performance appraisals?

9.Which of the three systems of appraisal mentioned in this article do you think is the

best for a) the manager? b) the employee?

Language focus

1. Find the best synonym. Match the words and expressions on the left with

2.Complete the following sentences with the correct form of the words in italics. Translate them.

rely

1.He is a very ____ worker.

2.I am ____ informed that he’ll be promoted soon.

3.Her main quality is her ____ .

4.My assistant is someone who can be ____ on . criticize

1.The report has been received very ____ by top management.

2.The Personnel Director is an outspoken ____ of our reorganization.

3.I thought her ____ were unfair and not based on fact.

skill

1.The Chairman was ____ at avoiding answering awkward questions.

2.The ____ workers in the Production Department are well paid.

3.To be a good manager, you need many ____ .

4.The ____ workers in our company are the lowest paid because they need training for their jobs.

employ

1.Most ____ in an organization can benefit from training.

2.____is almost 8 % in my country - that’s far too high.

3.The ____ are entitled to various social security payments.

4.He’s fairy old and hasn’t had a job for years. I’d say he’s virtually ____ .

sure

1.Performance appraisals help to ____ that promising staff are not overlooked for promotion.

2.At my interview, my boss ____ me that I had a bright future in the company.

3.____ you agree she’s one of the high fliers in the department.

able

1.This young trainee has considerable ____ .

2.Due to our ____ to get certain supplies, we lost the order.

3.Because of a production hold-up, we are ____ to provide the product.

4.In my work, I am ____ assisted by my secretary.

decision

1.Being a currency dealer in a bank, she has to make quick decisions and be very

____ at all times.

2.Because we were ____ , we wasted time and lost the contract.

3.I am still ____ whether to leave my present job but I must make up my mind soon.

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3. Addition and contrast

Look at the list of words and phrases which express addition and contrast. Consider how they are used and then do the exercise below.

addition – besides; as well as; as well; in addition; not only… but also; both … and; moreover; furthermore; also; too.

contrast – despite; in spite of; however; although; on the other hand; while; yet; whereas.

There are some notes below prepared by the Marketing Director of a large company. They concern two members of the Market Research Department, Barbara and Graham. Both these employees have been in the Market Research Department since they joined the company. They have both just applied for the vacant position of Head of Market Research. After reading the table translate the sentences into English completing them with the information in the table.

Barbara age – 30

status – single

years of service in company – 3

educational qualifications – master’s degree in marketing; diploma in communications

previous work experience – 2 years in transport department of oil company special skills and abilities – communicates effectively with staff; articulate; logical mind; sound powers of analysis; fluent French and Italian

personal qualities – hard-working; efficient; mobile – will work anywhere in the country; lively, out-going personality; popular with most colleagues

negative points – sometimes works too fast and misses important facts; can be too frank and outspoken; one or two colleagues can’t stand her; smokes too much; lives on her nerves

interests – modern jazz dancing; collecting paintings

health – had serious illness while at university – studies interrupted for one year.

Graham age – 36

status – married, with 3 children years of service in company - 8

educational qualifications – 3 A levels, 6 O levels (no further education) previous work experience – 2 years as a waiter in Hamburg; 5 years in banking; 3 years in market research firm

special skills and abilities – writes superb reports; exceptional mathematical ability; highly intelligent

personal qualities – respected because of his knowledge of the job; quiet; reserved; always calm in a crisis

negative points – considered unsociable by some; speaks rather slowly and hesitantly; no foreign languages; not mobile – wife has important job in local hospital

interests – says he is too busy to have outside interests health – excellent

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1.И Барбаре и Грэхэму более 30 лет.

2.Несмотря на то что Барбара очень исполнительна, иногда она ____

3.Барбара незамужем. Грэхэм, с другой стороны, _____

4.Хотя Барбара пользуется популярностью у большинства коллег ____

5.Кроме французского языка, Барбара ____

6.В то время как Барбара могла бы работать в любом регионе страны, ____

7.У Грэхэма нет специального образования, в то время как ____

8.Грэхэм отлично справляется с написанием отчётов. Более того, ____

9.Несмотря на умение Барбары общаться с людьми, некоторые люди считают ____

10.Барбара свободно говорит на двух языках, в то время как ____

4.Analyzing personality types and identifying strengths and weaknesses. There are four functions that we all perform: thinking, intuiting, feeling and sensing. There is one dominant function in each of us. Speak about yourself.

Thinker enjoys tackling problems by using logical analysis; is sceptical of projects unless backed up with sound, rational arguments; is a methodical worker; is strong on analysis but weak on implementing solutions.

Sensor is good at getting things done; is often impatient with the planning stage; feels at home with routine work; has a lot of common sense and is practical; works hard and is usually well organized; is energetic and single-minded.

Intuitor enjoys playing with the ideas and theories; is good at seeing the ‘overview’, but misses the detail; is creative and has a strong imaginative sense; often gets hunches about things that turn out to be correct.

Feeler enjoys human company; assesses people on their personal values, not technical skills; is warm and sympathetic; is perceptive about people’s moods, feelings and reactions; may overlook blatant (evident) facts in favour of ‘gut feelings’.

Listening

You are going to hear a group of four managers who work together and talk about themselves and each other. Classify each manager according to one of Carl Jung’s types.

Role play

Northern Oil Products LTD (NOP) recently carried out a survey of their managers’ attitude to their jobs. Questionnaires were sent to 500 middle and senior managers, and completed anonymously. The responses to some of the questions are summarized in the following table.

Study the table and do the role play which follows.

Instructions Work in groups of two or three. First, make comments about the survey’s results, as in the examples below. Use the expressions given in the table. When you have finished making comments about the survey, discuss the following questions.

e.g. Half the managers are satisfied with their job.

Just over 60 % think that they’ve been overlooked for promotion.

The majority of the managers are satisfied with the company’s working conditions.

Questions:

1.What conclusions can you draw about the company and its management from the results of the survey?

2.What proposals would you make if you were Director of Personnel to improve the attitudes of NOP’s managers towards their jobs?

Company’s performance

Describing trends in graphs and charts

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no change to remain stable; to level off; to stay at the same level; key phrases to rise from 1 million pounds to 3 million pounds;

to fall from 5 million pounds to 4 million pounds; to increase by 50 %

to drop by 10 %

Notes on prepositions

We use ‘to fall by’ (with a verb) and ‘a fall of’ ( with a noun)

For example: Exports fell by 6%.

Exports fell steadily, in November they stood at $400 million, a fall of 6 % on the day.

We use ‘ to rise to' ( with a verb) and ‘a rise to’ ( with a noun)

For example: It continued to rise in the early afternoon to 3412.

Useful phrases

(with nouns) a rapid / sharp / dramatic / substantial (increase) a slow / gradual / steady (decline)

a small / slight (drop)

(with verbs) to (increase) rapidly / sharply / dramatically / substantially / slowly etc.

to double / triple / quadruple

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.

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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.

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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?

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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

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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

1. Match the words from the text on the left with their definitions on the right.

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2. Which adjectives below describe positive aspects of someone’s character?

Which describe negative aspects? Divide the words into two groups.

3. Use the relative pronouns below to complete these quotations. Which gap does not need a relative pronoun? Translate the quotations into Russian.

1.‘The job for big companies, the challenge ____ we all face as bureaucrats, is to create an environment ____ people can reach their dreams.’ (Jack Welch, US business leader)

2.‘He ____ has never learned to obey cannot be a good commander.’

(Aristotle, Greek philosopher)

3.‘Leadership is an influence process ____ enables managers to get their people to do willingly ____ must be done.’ ( Cribbin, business leader)

4.‘Leadership is a process of influence between a leader and those ____ are followers.’ (Hollander, business leader)

5.‘A leader shapes and shares a vision, ____ gives point to the work of others.’

(Charles Handy, British writer and philosopher)

6.‘A leader should be humble (скромный). A leader should be able to communicate with his people. A leader is someone ____ walks out in front of his people, but he doesn’t get too far out in front, to where he can’t hear their footsteps.’

(Tommy Lasorda, US sports personality)

7.‘Leadership is the behavior of an individual ____ he is directing the activities of a group towards shared goals.’ (Hemphill & Coons, US business leaders)

8.‘A leader is someone ____ knows what they want to achieve and can communicate that.’ (Margaret Thatcher, British politician)

4. Look through the differences between managers and leaders. Speak on them.

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5.Paragraphs 1-9 contain advice for business leaders. Choose the appropriate heading for each paragraph from the list below.

a.A leader should be a good teacher and communicator.

b.A leader must manage time and use it effectively.

c.A leader must have technical competence.

d.A leader must provide vision.

e.A leader must be visible and approachable.

f.A leader should be introspective.

g.A leader should be dependable.

h.A leader should be open-minded.

i.A leader should have a sense of humour.

1.In large organizations, leaders should spend no more than four hours a day in their offices. The rest of the time, they should be out with their people, talking to lowerlevel employees and getting their feedback on problem areas. They should be making short speeches and handing out awards. They should be traveling widely throughout their organizations.

2.The best leaders are those whose minds are never closed and who are eager to deal with new issues. Leaders should not change their minds too frequently after a major decision has been made, but if they never reconsider, they are beginning to show a degree of rigidity and inflexibility that creates problems for the organization.

3.Executives must take a disciplined approach to their schedules, their post, their telephone calls, their travel schedules and their meetings. Staying busy and working long hours are not necessarily a measurement of leadership effectiveness.

4.Leaders may run efficient organizations, but they do not really serve the long-term interests of the institution unless they plan, set goals and provide strategic perception.

5.The leader must be willing to pass on skills, to share insights and experiences, and to work very closely with people to help them mature and be creative.

6.Leaders should let people know that life is not so important that you can’t sit back occasionally and be amused by what is happening. Laughter can be a great reliever of tension.

7.Reliability is something that leaders must have in order to provide stability and strength to organizations. Leaders must be willing to be flexible but consistency (последовательность) and coherence (связность) are important elements of large organizations.

8.Leaders must not only understand the major elements of their business but must also keep up with any changes.

9.Leaders should be able to look at themselves objectively and analyze where they have made mistakes and where they have disappointed people.

6. Read the portraits of leaders in five different countries and decide which country each one corresponds to.

Germany Poland Sweden The United Kingdom The United States

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1.Leaders 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.

2.Leaders 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.

3.Leaders 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 decision-making.

-are often women.

4.Leaders 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.

5.Leaders from this country

-have either gained their experience in state-owned 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.

Discuss 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?

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Translate the following extracts into English.

Общеизвестно, что хорошие деловые отношения строятся на понимании различий в культуре партнёров. Например, для большинства американцев характерно жёсткое и напористое ведение бизнеса. Системы и процедуры имеют для них большое значение.

Испанцев, напротив, не интересуют тщательно (meticulously) подготовленные собрания. Их больше интересуют люди, принимающие в них участие. В этом они похожи на арабов или японцев. Бизнес в этих странах строится на доверии, которое зарабатывается в течение долгого времени.

Итальянцы всегда стараются поддержать хорошее партнёрское настроение. Множество встреч и дружеских бесед проходит в Италии во время деловых переговоров, однако все важные решения принимаются вне залов для конференций.

Скандинавы, подобно американцам, ценят исполнительность, новизну и технологию. Они ориентированы на прибыль и скорейшее получение результатов.

Немцы очень осторожны в выборе деловых партнёров. Чтобы установить с ними долгосрочные деловые отношения, необходимо доказать, что вы также исполнительны, дисциплинированы и заинтересованы в качественном исполнении заказов, как и они.

Listening.

Listen to an interview with Marjorie Scardino, Chief Executive of the media group Pearson plc. Make notes as you listen and answer the questions.

1.What qualities does a leader need to run a large company effectively?

2.What managers in Pearson does she admire mostly? Why?

3.What do leaders actually do according to Marjorie’s view?

4.What does she think about motivating employees?

6.What does Marjorie think about the idea that ‘all human beings are born with some qualities of a leader’?

6.Do you agree with Marjorie Scardino’s ideas?

7.Would you like to work for the person like her? Explain your reasons

Communication skills – Leading a team

Setting goals

Our main objective is to ….. Our aim will be to ….

Highlighting factors for success

If we are going to be successful, we need to act quickly.

To succeed, we’ll have to take into account several factors.

Indicating priorities

Our first priority will be to contact our customers.

It’s also essential that we brief (инструктировать) our suppliers on …

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Defining roles and delegating

I’d like you to prepare a report.

Could you please liaise with Sales and Marketing?

Motivating the team

It’s a challenge, but it’s always an opportunity to develop the business. We’ll all benefit because new orders will follow.

Reporting back

I’d like you to keep me up-to-date by e-mail. I’d like to have your report by Tuesday.

I suggest we set up another meeting in two week’s time.

Role play the situation.

Take turns to be the team leader. Use expressions from the list of phrases given above.

You are senior managers at a computer graphics company. Your business has expanded rapidly: your workforce has doubled from 60 to 120 in two years. You urgently need to move from your small city-center location to a new suburban development area with bigger offices.

Hold a meeting to discuss what needs to be done, and by whom. For example: drawing up a schedule; liaising with a union; informing customers and suppliers; keeping staff informed; dealing with negative feelings; hiring a removal company. Then draw up an action plan to ensure that the move goes smoothly.

Case study Orbit Records: Discus ideas to recover a failing music retailer.

Background

Orbit Records was founded in London 20 years ago, and now has 12 large stores in the UK and five in Germany. The company grew at a fast rate because it had a successful marketing strategy. The stores offer a wide range of CDs which they sell at reasonable prices. Their record stores carry over 80,000 titles – about three times more than their main competitors. What’s more, if a customer asks for a CD which is not in stock, the store will get it for a customer within two weeks, if it’s available.

About two years ago, Orbit stores diversified into selling computer games, videos, tee-shirts, adventure holidays, concert tickets, books and comics. Not all the new areas were profitable, and as a result the company’s profits fell sharply.

A change of leadership

After the founder of Orbit Records died, a new Chief Executive, Sheldon Drake, took over. However, he failed because he lacked leadership qualities. He was unable to develop a strategy for improving profits and had no clear vision of where the company was going. Also, he did not communicate well with employees, who started to lose confidence in the business. They began to worry about losing their jobs and their morale suffered.

Three months ago, Sheldon drake resigned, and his place was taken by someone from outside the company.

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Tasks of new Chief Executive

One of the new CE’s main tasks is to motivate staff and raise morale, so that staff will be more productive. He has asked Personnel to carry out a survey of staff attitudes. Questionnaires were sent to all employees below senior management level. The results are on the chart.

He has also jotted down ideas for raising motivation and morale, and has asked employees to do the same. The best ideas will be implemented throughout the company.

Chief Executive ideas

1.Build morale through teamwork outside the office – in sports activities. Form company teams for soccer, basketball, squash, etc. Get employees to participate in inter-company competitions, e.g. athletics, swimming events and so on.

2.Introduce regular staff meetings which will enable staff at all levels to participate in decision-making.

3.Set up regular small-group meetings to share ideas, develop plans and help prepare budgets. Also, start an ‘Employee of the Month’ scheme. Everyone has to nominate someone, giving reasons why they should be nominated.

4.Make sure that the CE gets out of his office frequently during the first year and drops in on staff at different Orbit stores.

5.Encourage staff through meetings and a newsletter (to be edited on a monthly rotating basis by different senior managers) to give ideas and suggestions. There would be cash rewards for the best ideas.

6.Set up a profit-sharing scheme for all employees related to increased productivity and profits.

7.Cancel the end-of-year bonus scheme. Spend some money instead on a spectacular Christmas dinner and party at a luxurious hotel.

8.Organize one-to-one meetings with senior managers to build morale and generate ideas. Agree targets and objectives with senior managers, who share them with other staff members at regular seminars.

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9.Have an open-door policy in every store. Employees can see the managers whenever they are available.

10.Create career development plans for all staff, which would involve consultations with each employee.

Task

1.Work in small groups. Choose six ideas from the Chief Executive’s list which you think would be worth implementing. Note down the reasons for your choices.

Think of three other ideas, which are not on the list, for improving staff motivation and morale.

2.Meet as one group and discuss your ideas, giving reasons for your choices.

3.As one group, try to agree on the six best ideas (from the Chief Executive’s and your own list) which should be put into effect.

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Contents

1.Unit 1. The manager’s role ………………………….. 1 – 10

2.Unit 2. Company structure ……….. …………………10 – 22

3.Unit 3. Recruitment …………………………………..22 – 31

4.Unit 4. Planning and Strategy ………………………. 31 – 51

5.Unit 5. Decision-making ……………………………. 51 – 61

6.Unit 6. Goal-setting …………………………………. 61 – 69

7.Unit 7. Motivation and performance appraisal ………. 69 – 82

8.Unit 8. Leadership and international business styles … 82 – 91

Sources

1.David Cotton “Keys to Management”, 1997

2.David Cotton, David Falvey, Simon Kent “Market Leader”, 2000

3.Ian MacKenzie “English for Business Studies”, 1999

4.Ian MacKenzie “Management and Marketing”, 1997

5.David Cotton, Sue Robbins “Business Class”, 1997

6.John Morrison Milne “Business Language Practice”, 1994

7.Graham Tullis, Tonya Trappe “New Insights into Business”, 2001

8.В.Д. Рыжков “Менеджмент. Деловой Английский язык”, 2003

9.У. Руделиус и др. “Маркетинг”, 2001

1 – g 2 – c 3 – l 4 – o 5 – i 6 – p 7 – s 8 – f 9 – m 10 – a 11 – q 12 – n

Unit 4 Planning and strategy

Language focus

Ex. 1 p. 38

1 – j 2 – f 3 – h 4 – e 5 – g 6 – a 7 – m 8 – d 9 – c 10 – k 11 – l 12 – i 13 – b

Ex. 2 p. 38

a) 1 – b 2 – a 3 – d 4 – c b) 1 – d 2 – b 3 – a 4 – c

Ex. 3 p. 38

1 – growth rate 2 – product line 3 – resources 4 – productivity 5 – product range 6 – sales revenue 7 – market share 8 – production capacity

1 – h 2 – i 3 – j 4 – r 5 – n 6 – p 7 – q 8 – m 9 – b 10 – k 11 – s 12 – c

1 – l 2 – h 3 – n 4 - b 5 – o 6 – g 7 – p 8 – a 9 – m 10 – e 11 – c 12 – i

Unit 7 Motivation and performance appraisal Motivation

Language focus

Ex. 1 p. 72

1 – f 2 – m 3 – d 4 – g 5 – n 6 – l 7 – k 8 – c 9 – j 10 – a 11 – e 12 – b 13 – i 14 – h

Performance appraisal

Language focus

Ex. 1 p.75

1 – p 2 – j 3 – h 4 – c 5 – f 6 – k 7 – n 8 – a 9 – l 10 – o 11 – q 12 – i 13 – m 14 – g 15 – d 16 – b 17 – e

Unit 8 Leadership and international business styles

Language focus

Ex. 1 p. 83

1 – d 2 – f 3 – g 4 – j 5 – l 6 – i 7 – k 8 – m 9 – b 10 – c 11 – e 12 – h 13 – a

Ex. 5 p. 85

a – 5 b – 3 c – 8 d – 4 e – 1 f – 9 g – 7 h – 2 i – 6

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Audio scripts

1. Unit 1 Manager’s role

B – Brian, J - Joan

B – How do you do? My name’s Brian Robinson. J – How do you do? I’m Joan Knight.

B – Who do you work for then?

J – I’m with the Palmer Reece group. You may have heard of us. We design and manufacture electronic equipment. I’m the finance manager.

B – I see.

J – How about you?

B – I work for a firm of kitchen designers. Kitchen interiors, we’re called. We install fitted kitchens, mostly in private houses. I’m Area sales manager.

J – That’s interesting! Where are you based?

B- Our head office is in Colchester. We’ve got branch offices all over the country

. Where is your head office?

J- We’re are in Midlands. In Leicester, actually. But I work in our London office.

Have you been with your company long?

B – Fairly long. I’ve worked for them for five years now. Before that, I was a salesman for a department store. I must say, I prefer what I’m doing now. You get out and meet all kinds of people. And I enjoy all the driving too. Your company’s pretty big, isn’t it?

J - Mm., I’d say so. Our turnover’s almost 50 m pounds. And we’ve got a work force of over 1,000. Yes, we are big.

B – My firm’s much smaller. Our turnover’s roundabout 5 m pounds.

J – How about staff?

B – Oh, about seventy or eighty people – full-time staff, that is. We’re a private company, by the way. Still family-owned. But I reckon we’ll go private in a few years’ time.

J - Really? Your firm must be doing well. We’re a public company, of course. We have been for the last thirty years.

B – Ah, I thought, I’d noticed your firm’s name when I was looking at the share prices recently in the newspaper.

Unit 2 Company structure

1.Listen to seven people talking about their work and decide which department each one works for.

Speaker 1:

Every six months we produce a report showing how the company is doing. This past week , we’ve been busy with our accounts preparing the results that will be included in our next report.

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Speaker 2:

I’m a member of a team of engineers and we’ve just finalized the design of our new portable computer. This model will be more powerful and more adaptable than our previous one. We are constantly looking for new ideas and experimenting with new products.

Speaker 3:

Before selling our latest product, our department must decide in which regions it will be the most successful and what types of consumers we want to reach.

Speaker 4:

Communication is a key aspect of my department’s work. We answer enquiries made by our customers and are also in contact with the press to inform them of our new products and changes within the company.

Speaker 5:

We’ve been having problems with the quality of certain electronic parts made in our factories. So several members of a department have got together to talk about ways of improving some of our manufacturing techniques.

Speaker 6:

Our company is going through a difficult period and we have to reduce the number of employees in several departments and to review salaries throughout the organization.

Speaker 7:

In today’s changing work environment, computer systems play an essential role in how the company is run. In our department we not only ensure that all systems are working properly but we also design and develop new applications to make it easier for our employees to exchange and share information.

2. A – Alistair is a novice in the company. M – Martin is his coach.

M – So, what I believe it comes down to is a number of links between the key people in the company.

A – The unofficial power hierarchy?

M – Exactly. So, let me show you how it works. Firstly, to make sense of the actual links, we need to define our framework. And I reckon that we can identify 6 clear categories.

A – Oh, I thought it would be just family, friends and mentor/protégé.

M – Well, that’s certainly part of the story, but not the whole picture. So, firstly we’ve got what you rightly called family ties.

A – Normally, by marriage I suppose.

M – By it or through it. So, on the chart, we can put a number 1 here by the Personnel

Director and Production Director because the Personnel Director’s husband is the brother of the Production Director.

A – So, brother-in-law and sister-in-law?

M – Exactly. And there is another link here between the Personnel Director and the new Sales/Marketing Director, who must be just a bit older than you, because he’s her cousin. Young chap – very bright and dynamic. He’ll go far in this company given his talent and connections.

A – I see. So the family ties play an important role?

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M – Yes. And then there are the friendship links: drinking, golfing, holidaying and generally socializing. The second level links – number 2, if you like. Now, let me get it right.. Although the Managing director is a real workaholic, he does enjoy a round of golf from time to time. And one of his golfing partners is our Personnel Director. Now the Personnel Director, or rather her husband especially, is a bit of a wine connoisseur, as is our Financial Controller. So, in recent years they’ve taken to going down to France together on wine-tasting holidays.

A – I see. That’s very interesting.

M – Yes, as you’ll see, it all helps to oil the wheels of business. Now, there is another link here. Oh, yes, the Financial Controller, who is a wine connoisseur, has a

French wife, and she often socializes with the Factoty Manager’s wife. They’ve both got quite young families and spend time together at each other’s houses.

A – So, not a ‘liaison dangereuse’?

M – No, not at all. All very innocuous, but part of the culture here. Now, I don’t think there are more social links. But there are some people linked by educational ties.

A – You mean old boys who went to the same school?

M- Exactly. So, let’s call that number 3. Now, if I remember rightly, the Training

Manager went to the same school as all the Regional Sales Managers. A – All of them? Bit of coincidence, that, isn’t it?

M – I suppose it looks a bit odd. But I’ve heard that they all do a super job and get on really well together. Now, let me think if there are any more school links. No, I don’t think so.

A – Is that it then?

M – Not quite. There’s one more link, which is how I would describe ours: mentor/protégé. You know, someone who has been trained and groomed for a particular job, and then promoted, usually from within the company, to take over the mentor’ job.

A – So, number 4, if my arithmetic serves me well.

M – Yes. Now we have got quite a few number 4’s around. The Managing Director was instrumental in getting the Personnel and Production Directors promoted from lower in the hierarchy to their present jobs. And having been promoted herself, the Personnel Director was responsible for bringing the Recruitment manager in from Brixon’s, I believe.

A – So that was an outsider brought in?

M - Exactly. Oh, and there’s one more that I nearly forgot. When the Managing

Director took over some 8 years ago, he brought in this chap here, our Financial Director.

A – Where from?

M – Well, that’s a mystery. Nobody knows!

Unit 3 Recruitment

P M – Personnel Manager, I – Interviewer

P M – The most important thing when interviewing a candidate is his character, his ability to react, his intelligence and his suitability for the position that … which … for which he is being interviewed.

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I – And uh, to what extent does the person’s appearance influence your decision?

P M – It does influence the decision, uh, but it does some bearing on the decision, if you can take the difference between the two. It is important that the guy, the person, is well presented, is neat and tidy, and that he has a good manner, uh, because that shows a lot about his personality.

I – Do you expect the candidate to be prepared in any way for the interview, or how should he prepare himself for the interview?

P M – Well , it’s not a question of preparing himself. In the position in which I am, uh, normally the candidate’s had at least one or maybe two interviews with other members, more junior member or staff before he gets to my level, unless the particular candidate is going to report to me, and in which case I expect the person concerned to have a fairly good knowledge of: (1) what the company does, (2) what he’s going to be expected to do, and (3) who he’s going to report to. Those things, those three items are very, very important, and if the candidate doesn’t give the impression of either understanding one of those

three items, then obviously he gets marked down accordingly. I – How does a candidate go wrong?

P M – The major way a candidate goes wrong is by basically becoming a yes-man or yes-woman and agreeing with everything you say. What is most important …

One of the most important things about interviewing a candidate is the chemistry between somebody, between the two people in the interview, it’s very, very important – he has to have a spark, you have to feel as though that guy is going to contribute, that guy’s going to be good and you are going to get something out of that person and he has to show himself to be not just ‘Yes sir, thank you very much. Yes I agree with that, I agree with that.’ Sometimes I lay dummy questions in which I want a ‘no’ answer and if he continues to say ‘yea’ then he goes down.

I – What would your advice to be a candidate, going to an interview. How would you advise him?

P M – The firs thing I would say to him is first of all to listen, secondly, to ask the right questions, and thirdly, perhaps the most important, is to create the right relationship which is, I guess, an adult-to-adult relationship with the interviewee or the interviewer. It is very important and that’s what I said before, is when you get a yes-man in front of you, or a yes-woman, then that person is obviously not creating an adult-to-adult conversation. He’s creating an adult-to child conversation and in most cases, managers are not, if they are good and they know what they want, they’re not going to be interested in employing a child.

Case study Slim gyms

I – Interviewer, I R – Isabella Rosetti

I – Now let me ask you a question we ask all our candidates. Why should we hire you? I R – Why hire me? Simple. I get along well with people. I’m used to dealing with

people from all walks of life. That’s vital for this job. And I’ve got lots of ideas for making Slim Gyms more profitable. Want to hear them?

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I – Not just now, if you don’t mind. We’ll come back to that later. Um, about your attendance record. Could you tell me why you’ve had quite a bit of time off?

I R – Hmm, you‘ve been talking to my boss, I see. Let’s get this clear. I’ve taken a day off now and then, true, but it’s always to go to some family celebration – a marriage, a christening, a family reunion sometimes.

I – Uh huh.

I R – Anyway, I’ve got a great assistant at work – she looks after things if I’m away. It’s no problem at all if I have a day off now and then.

I – Right. Can we look into the future now? I’m interested to know where you see yourself in a few years?

I R – In a few years I suppose I see myself … um, working for your organization, running the whole business.

I – I hope you achieve that objective.

I – Interviewer, M B – Michael Bolen

I – Right, a question now about your managerial skills. You’re currently with a sporting goods firm. Do you enjoy working on a team – with other managers?

M B – I enjoy working with colleagues a lot, especially when developing a project, let’s say, working on a new product. It’s exciting, often tiring, you are working long hours sometimes, but everyone’s working together, to make a success of things.

I – So would you say you are a good team player?

M B – Definitely. But let me say this, I like to be on my own from time to time. Especially if there is some problem to be worked out. I guess some people would say I keep to myself too much, but it’s not true really.

I – OK, let me follow that up. Um, I’d like to know what your colleagues would say about you. How would they describe you?

M B – Huh, that’s a difficult one. Mmm …, I think they’d say I know my own mind, I’m a decisive person. Sometimes, you have to do things that you don’t like, for example, fire an employee. Well, if I have to do it, I do it, and then forget about it.

I – What else would your colleagues say?

M B – They’d say that I am a friendly person, when I get to know people. Some of them think I am too friendly.

I – Really?

M B – Well, you know, a few of the women in the company, they get a little jealous because I take out my administrative assistant, Sue, from time to time, Give her a nice lunch, you know, say thanks for all her hard work. Nothing wrong in that, is there?

I – Interviewer, B W – Bob Wills

I – You are obviously eager to get this job? Could you tell me what your strengths are? What do you think you are good at?

B W – Main strengths? Good at managing people, I’d say. I suppose it’s my army training. I know how to set goals for people. Objectives. And I’m sure they meet them.

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I – Hmm, don’t you think some people might get upset, you know, lose their motivation if they don’t achieve the goals you set?

B W – Not at all. You don’t get anywhere in this life if you are too easy on people. You’ve got to make an effort to get anywhere. Like your health club customers. If they want to get fit, they’ve got to have discipline. Do all the exercises, eat properly, give up alcohol and smoking. Change their lifestyle – that’s what it’s all about.

I – Mmm, interesting! A final question. Maybe a difficult one. Could you tell me how you’ve changed in the last … oh … five years, let’s say.

B W – Sure. I think I’m more realistic now than I used to be. I know it’ll be difficult for me to get a good job – being in the army most of my life. So, I’m trying to learn new skills, update my knowledge. Like in marketing and finance. So, I’ll have more to offer an employer. I’m not going to sit around waiting for the big job to come to me – it’s not my style.

I – Interviewer, S G – Stephanie Grant

I - Right, Can you tell me why you want to leave your present job, TV announcer?

Well paid. Everyone knows you. Admires you. You’ve got everything you want, don’t you?

S G – Huh, I guess it does look like that. I do love the job. But I’m thirty now. I know the management is looking for younger talent. It wants sparky, glamorous twenty-year-olds in the job. To increase the ratings. I’m on the way out, I know that. So … I’m going before I’m pushed.

I – Oh, sure not. Someone with your reputation.

S G - People come and go in my profession. Think of all the stars of ten years ago. Where are they now?

I – Mmm, I take your point. Um, looking at your CV, your earlier career. You gave up competitive swimming when you were …er …twenty four. Rather early to do that, wasn’t it? I mean, don’t swimmers go on competing …?

S G – Look, I’m sure you read the papers. You must know, when I won the big races, some of the swimmers accused me of taking drugs. You know, to improve my performance. It was horrible. All a bunch of lies. I got really upset, I thought, oh, I don’t need this nonsense. I just gave it all up. I’d had enough.

Unit 4 Planning and strategy

1. I – Interviewer, M S – Marjorie Scardino

I – How do you develop a strategy for a large company?

M S – There are lots of ways to go about it. I think the way we’ve done it is to first think about what assets we have – what’s unique about those assets, what markets we know about and what market are growing, and which of those markets can make the best use of our assets. We then put that into the bowl, heat it up, stir it around, and come out with a strategy.

I – And in broad terms, what is your strategy in Pearson?

M S – Well I, we have approached our strategy … Let me answer it this way, by

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looking at it as three simple steps. When I joined Pearson a couple of years ago, we needed to improve our operations. We needed to just run the companies we had, and the businesses we had better. So our first step in our strategy was simply to operate better. To create better profits, and better cash generation, and better long-term value for the shareholders. We then … the second step which was not happening in a serial way but happening at the same time, the second step was to look at the assets we had and see which ones we should keep and which ones we should dispose off. Those we disposed off, we did because they would be worth more to other companies than to us because they didn’t fit with the rest of our company, or were things we didn’t actively control – we had a passive interest in – so those disposals were an important part. And then the third step was to stitch together all our businesses, so that they were able to use each other’s assets, to make a greater whole.

2. I – Interviewer, M S – Marjorie Scardino

I – What trends do you see emerging in the strategy of large companies?

M S – I’m not a great student of everybody else’s strategy, but I would suspect they are trends towards globalism, towards having more international operations, rather than simply having a national business. They are probably trends towards mire focus on people, and more focus on the people who work in a company as the company. And probably more a change in the management style of companies towards more teamwork and more collegiality and less sort of authoritarian ways of running the company, and therefore the ideas that come from that kind of organization.

I – What strategies have influenced or impressed you?

M S – There’s one … Strategies that impress me are strategies that are extremely clear, and define a very unique goal. I think that one of the strategies that impresses me is Coca-Cola’s. And I’m sure its strategy has several levels. But it is encompassed in what they call their ‘goal’ or their ‘mission’, which is something like: Put a cold bottle of Coca-Cola within arm’s reach of every thirsty person in the world. So that means: here’s what their main product is – and they are going to focus on that; they are going to focus on international markets, not just parochial ( узкий, ограниченный) markets; and the are going to focus on distribution, wide distribution and promotion. And so that sort of encompasses everything. That’s a good strategy, very clear, I’m sure nobody who works in Coca-Cola doesn’t understand what they are after.

3. I – Interviewer, B H – Barry Hyman

I – What are the strengths and weaknesses … well let’s take the strengths, the strengths of the company, the sort of SWOT analysis, you know, strengths, weaknesses, opportunities, threats, but particularly the strengths, would you say of

Marks and Spencer’s …?

B H – I think the strengths are its ability to buy its merchandise very accurately and very quickly, and that is what this is all about. If we stop selling goods we might as well all of us go home!

We have a dedicated and committed supplier base, build up over decades, some

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of the suppliers with us since the founding of the company. If you add on to that, and when I said ‘that’ I mean their willingness to give us the right merchandise, because it ‘s in their interests as well as ours obviously, the technical developments which have taken place in the last few years. Our capacity with electronic point of sale and astute suppliers, to change color, change fabric, change style much more quickly than ten years ago is an integral part of the success of the business at the moment.

That’s the major strength. I think another strength is the innate flexibility of the people who work in the business. Erm, you have to turn it to a strength, sometimes it can be a weakness – that we change people around too often, but essentially the strength is that you can have somebody who has learned the management skills of the business buying fish this year and buying jumpers next year, and applying the same sort of management skills of buying to whichever industry he in.

If there is a weakness it is, or was perhaps an inclination to change people around too often. I think it’s a weakness we’ve overcome and we are now recognizing that, er, strength of knowledge counts for something, so while you want to develop people, a) give them an opportunity of a number of career chances and b) make sure that you’ve got flexible people, the first prerequisite is to make sure that people spend a sensible amount of time in an area to their benefit and to that of the business.

I – Opportunities?

B H – Opportunities are boundless. When I joined the business in 1959 the best I could hope for as a Londoner was to go to south to Falmouth and north to Aberdeen

… but if I work for the company now I can go to America, I can go to France, I can go to the Far East. The world is now literally at my feet, and young people coming in now have the most fantastic opportunities to travel and develop their skills, and are encouraged to do so.

I – So the internationalization is the big opportunity? B H – Yes. Great development, yes.

I – What are the major threats, would you say, to the business? Are they any?

B H – It sounds arrogant, doesn’t it, to say that we have no competition, and I don’t mean it in that way. Of course there is competition. Every other retailer is a competitor, I don’t see any of them at the moment as major threats, and the reason I say it is this. In the 80s when the high street was developing rapidly and a variety of other bright traders were coming along, and a variety of retailers who I won’t name at the moment, we were told that Marks and Spencer’s day was over. We were looking tired and jaded, and they were going to modernize their stores and put in systems and merchandise which would see us off! With hindsight, many of them are not there any more. If their companies are, they are trading at a loss. We are still trading at a profit. It’s a race in which we are very happy to be the tortoise rather than the hare. So no immediate threats, but we are not complacent. We are aware of other retailers and other techniques and we keep an eye on them all the time.

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4. Innovative strategy

1. I – Interviewer, J K – Jeremy Keely

I – OK Jeremy, let me start by asking you, why do people resist change?

J K – Resistance to change is one of the most natural reactions and is based on uncertainty and it’s based on fear – fear of losing your job, fear of , perhaps, not being able to cope with a new situation. It’s based on lack of trust in the decision-makers and it’s based on a complete feeling of lack of control over the situation. All of those are very natural reactions, and the way to manage resistance is not to completely ignore it but actually to manage it as if it were natural.

2. I – Interviewer, J K – Jeremy Keely

I – Can you think of an example where change was handled well?

G K – One of my favourite examples. I was working for a client a number of years ago, and a new Chief Executive came on board and the client had to significantly reduce its costs. It had been trying to compete with its major competitor on a basis of volume and was trying to be cheaper. And its major competitor was four or five times its size and there was just no way that could happen. And the new Chief Executive came in and within three weeks had published exactly what he was trying to achieve. And every single person in the organization knew this chap’s vision. They knew they were going to segment the market – they were going to go for corporate, high spend, high profile customers, and they were going to ignore the mass volume residential market which was a lot bigger, and with much larger margins. And the company was going to go for much more value-added.

And the Chief Executive made absolutely clear, right from the beginning, exactly what he was going to do. He talked about the number of heads he was going to have to take out of the organization. So he talked about the pain – he was absolutely honest about it. But he also talked about the gains and explained his vision in a lot of detail to everybody but in a number of face-to-face communications and in a weekly letter that he wrote to everybody in the organization. Every week a letter came out from this chief executive saying exactly what progress had been made, exactly what he was still aiming to do – what the next steps were. And this happened week after week after week.

He was a very effective manager. And the second thing he did was move very quickly on the painful stuff. So he very quickly took out the people who didn’t

fit. So sometimes the decisions were hard, but he made them and he made them quickly.

Case study Acquiring Metrot

I – Interviewer, H W – Hugh Whitman

I – Imagine you’ll be making some changes, Mr Whitman, now that you’re in charge at Metrot.

H W – Yes, there will certainly be some changes, there always are when you acquire

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another company. Metrot is a fine company, that’s why we bought it. It has a skilled work force and excellent products. We think we can help Metrot to become more dynamic and efficient. We want it to compete successfully in European markets where there are big opportunities for us.

I – You say, more efficient. Does that mean reorganization? Job losses? I believe that the staff at Metrot are worried about this.

H W – It’s early to say. But there could be some staff cutbacks in the sort term. We shall see. Our plan is to expand the company and create as many job opportunities as possible.

I – What about the factories? Some people say you’re thinking of relocating some of the factories and selling off some of the land you’ve acquired.

H W – I don’t want to comment on that. Our aim is to build Metrot and make it a strong company at the leading edge of technology, with an image for quality, reliability and good service.

I – I see. Thank you Mr Whitman. I wish you the best of luck in your new position.

Unit 5 Decision-making

1. C – Chairmen, M – Michel, P – Paula, T – Tom, S – Susan

C – OK, the main item on the agenda is whether we should sell our store in Paris. I’d like to hear your opinions about this. But first of all, can you give us the background, Michel?

M – Yes. As you all know, we opened the store in Boulevard Jordan five years ago. We hoped it would be a base for expansion into other areas of France. But it hasn’t been a success. It hasn’t attracted enough customers and it’s made losses every year. As I see it, it’s going to be very difficult to get a return on our investment.

P – I agree. There is no possibility it’ll make a profit. It’s in the wrong location, there’s too much competition, and our products don’t seem to appeal to French people.

We should never have entered the market – it was a mistake. We should sell out as soon as possible.

T – I don’t agree with that at all. Things have gone wrong there, it’s obvious. The management has let us down badly – they haven’t adapted enough to market conditions. But it’s far too early to close the business down. I suggest we bring in some marketing consultants – a French firm, if possible, and get them to review the business. We need more information about where we are going wrong.

S – I totally agree with you. It’s so early to close down the store, but I’m worried about the store’s location. We’re an up-market business, but most of the stores in the area have moved down-market, selling in the lower price ranges. That’s a problem. I think we have to make changes – very soon. I mean, our losses are increasing every year, we just can’t go on like this. We may have to revise our strategy. Maybe we made a mistake in choosing France for expansion.

C – Well, thanks for your opinion. I think on balance we feel we should keep the store going for a while. So, the next thing to do is to appoint a suitable firm of marketing consultants to find out what our problems are, and make recommendations. Personally, I’m convinced the store will be a success if we get

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the marketing mix right. We’ve got to get the store back into profit, we’ve invested a lot of money in it.

2. S J – Simon Jacobs, S M – Susan Manx, P T – Paul Taylor, G B – Gordon Brown

S J – Well, you’ve all read the report and I think we’d all agree It makes pretty depressing reading. Before we go on to decide what we are going to do, I’m determined to get to the bottom of this. I want to know why we made these mistakes.

S M – Well, as far as we were concerned, Gordon Brown represented a very sound investment. If the company had continued to operate profitably, we would have expected annual profits of around 350,000 pounds – which would have represented a good return on our initial investment of 2.5 million.

S J – So you were pretty confident when we bought the company. Paul, what was your view?

P T – Well we were attracted by their customer base in a part of the country in which Manx was not well represented. Our projections were based on the successful launch of Manx products through Gordon Brown outlets.

G B – If you don’t mind me saying, that’s were you went wrong. My father established a very successful family business based on a fairly traditional product line. If you wanted to achieve the sort of profit figures Susan mentioned, your best bet would have been to continue selling our range of products.

P T – I disagree. Our market research showed that your established customers would be interested in updating their office accommodation and they liked the look of our catalogue when we showed it to them.

G B – Maybe. But they thought they’d be dealing with the same Gordon Brown team. In fact what you’ve done is to remove most of the sales staff who’d been with the company for many years.

S J – Gordon, I think you are exaggerating and I’d like to remind you that we are all part of the same team – we’re not looking for scapegoats.

G B – I’m not blaming anybody personally. I just think we underestimated our customers’ loyalty to the traditional products and well, the people they are dealing with. You know what they say – 60 % of sales are down to the personal relationship between customer and supplier.

P T – Sure, we all know that. But we couldn’t stand still. If we’d continued offering the same products, I reckon our results would have been even worse.

G B – No, now you’ve no evidence for that. Susan’s profit projections were based on existing products.

P T – But surely you don’t think we should have stood still – just done nothing.

S J – Well, I’m not so sure about that. It we’ve done nothing, we might be looking at some sort of return on our investment. And, as it is, we’ve not only paid 25 million for the company but we’ve also spent an additional half a million, updating showrooms, introducing a computerized order system. Where’s it all got us?

P T – I think you ‘re all ignoring the economic climate over the last couple of years.

We all know that it’s been very tough and sales are down in all our sales areas.