Answer the questions:

1. What is economics?

2. What defines economic system?

3. What is economic system?

4. What are the factors of production?

5. What does microeconomics study?

6. What does macroeconomics study?

7. What other economic concepts do you know? Name them and try to give their definitions.

Management.

The term management can have different meaning. Economists define it as a set of activities including planning, decision making, organizing, leading, controlling directed at an organization’s human, financial, physical and informational resources with the aim of achieving organizational goals in an efficient and effective manner. In other words management is a process of coordinating resources to meet an objective.

Why should there be such interesting management? Because management is universally necessary in organizations. It is the force holding everything in a business enterprise together and setting everything in motion; it is the coordination of an organization’s recourses – land, labour and capital – to meet an objective. Certain basic principles of coordination can be applied to virtually every type of organization, whatever its size or purpose. An auto plant, a city government, a baseball team, a typing service – all require management. Whenever people work together to achieve a goal, someone must make decisions about who will do, what, when and what money and other resources are to be used.

The management hierarchy, pyramids-like structure, comprises top management or upper-level managers who have the most power and take overall responsibility for the organization; the middle managers, whose power and responsibility are used chiefly to implement the broad goals set by top management; and supervisory management, or operating managers, whose power and responsibility are used to coordinate the work of all who are not managers.

Everywhere in the world management is considered to be more art than science. There are many people well aware of management techniques but unable to implement it into practice, others have lot of technique but few good ideas. Outstanding managers are rather rare.

Vocabulary:

Meaning – значення

Decision making – прийняття рішення

Purpose, aim, goal – мета, ціль

To set into motion – надавати руху, приводити (пускати) в рух

Objective – мета, завдання, яке необхідно здійснити

Virtually – фактично

Top management – вище керівництво, вища адміністрація

Middle management – середня адміністративна ланка

Supervisory management – нижча контролююча ланка

Answer the questions:

1. What meaning has the word “management”?

2. In what way do economists define management?

3. What is management?

4. Why is management necessary?

5. What is management hierarchy?

6. What is top management responsible for?

7. What is middle management responsible for?

8. What is supervisory management responsible for?

9. Is it difficult to be a good manager? Why?