Модуль 2. Россия в эпоху глобализации. Проблемы глобализации

Text 1. Living in the Global World

Globalisation can be described as a process by which the people of the world are unified into a single society and function together.

The term "globalisation" has been used by economists since the 1980s. However, globalisation existed even during the Roman Empire, when the Silk Road started in China. The Islamic Golden Age is also an example, when Muslim traders and explorers established an early global economy across the Old World.

In the 17th century, globalisation became a business phenomenon when the British East India Company, which is often described as the first multinational corporation, was established. Because of the high risks involved with international trade, the British East India Company became the first company in the world to share risk and enable joint ownership of companies. Globalisation was achieved by the British Empire due to its size and power. British ideals and culture were imposed on other nations during this period.

Globalisation, since World War II, is largely the result of planning by economists, business interests, and politicians. Such institutions as the International Bank for Reconstruction and Development (the World Bank), and the International Monetary Fund came into existence. Globalisation has been facilitated by advances in technology which have reduced the costs of trade originally under the auspices of the General Agreement on Tariffs and Trade (GATT), and the World Trade Organisation (the WTO).

Globalisation has various aspects which affect the world in several different ways such as:

• Industrial - emergence of worldwide production markets;

• Financial - emergence of worldwide financial markets;

• Economic - realization of a global common market, based on the freedom of exchange of goods and capital;

• Political - creation of a world government (the WTO, the World Bank, and the IMF) which regulates the relationships among governments;

• Informational - availability of telephony and the Internet;

• Language - about 75% of the world's mail, telexes and cables are in English. Approximately 60% of the world's radio programmes are in English. About 90% of all Internet traffic is using English;

• Competition - survival in the new global business market calls for improved productivity and increased competition;

• Cultural - the growth of cross-cultural contacts; the desire to increase one's standard of living and enjoy foreign products and ideas, to adopt new technology and practices, and to participate in the "world culture";

• Ecological- the advent of global environmental challenges such as climate change, water and air pollution. However, as many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution;

• Social -international cultural exchange;

• Technical - development of a global telecommunications infrastructure using such technologies as the Internet, communication satellites and mobile phones;

• Legal/Ethical The creation of the international criminal court and international justice movements.

Globalisation is the growing integration of economies and societies around the world It is one of the most hotly-debated topics in international economics today.

Answer the Questions:

1. What is globalisation?

2. When did the early forms of globalisation appear?

3. Why was the British East India Company described as the first multinational corporation?

4. What factors facilitated globalisation?

5. How did globalisation affect the world?

6. What principals is the global market based on?

7. What international organisations regulate the relationships among governments?

8. What ecological problems does globalisation rise?

9. What technical innovations did globalisation bring?

10. What language is considered to be the language of the global world?

Text 2. Multinationals of Today

A multinational corporation (MNC) or a transnational corporation (TNC) is a corporation or an enterprise that manages production or delivers services in more than one country.

Very large multinationals have budgets that exceed some national GDPs (gross domestic product). Multinational corporations can have a powerful influence on local economies as well as on the world economy.

Many MNCs are very large in relation to the national income of the countries in which they are located. This means that it is not as easy for the host governments to enforce national laws on MNCs. Generally speaking, governments want to get investment from these MNCs because they generate jobs and incomes. Other benefits include training of local workers. Technology transfer is also a positive motivation.

In a highly competitive world, companies seek to reduce their costs as much as possible. The prospect of a foreign company setting up in a country where labour is cheap is attractive both for the company and the host country's government. Multinational corporations can be divided into three broad groups according to the configuration of their production facilities:

• Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products (example: McDonald's);

• Vertically integrated multinational corporations manage production establishments in certain countries to produce products that serve as input to its production establishments in other countries (example: Adidas or Nike);

• Diversified multinational corporations manage production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated (Microsoft or Siemens).

Answer the Questions:

1.What is a multinational corporation?

2. What budgets do large multinationals have?

3. Why can multinational corporations have a powerful influence in local economies?

4. What do local governments want from multinational corporations?

5. What benefits of multinationals can you name?

6. What do companies seek in a highly competitive world?

7. How can multinational corporations be divided?

8. How does a horizontally integrated multinational corporation organise its business?

9. What is a vertically integrated multinational corporation?

10. What type of companies are Microsoft and Siemens?

Text 3. Russia in the Global World

Russia is part and parcel of the global world, whether we are talking about the economy, media or cultural development. Russian business is beginning to take part in all global initiatives. The great advantage of globalisation is that it increases competition. However, Russian companies and firms have to be careful and have to order their affairs so that they can really compete in a global market. Otherwise it can be overweighted by a large number of disadvantages.

The first is that globalisation can hurt the local government’s ability to deal with issues like welfare, benefits, wages and taxes mainly because the multinational is able to say to the Government, -‘Look, unless you lower your taxes on us, we’ll be moving off to South East Asia or Latin America’, and so on. And so it takes out of the hands of the government the ability to control their own welfare systems and provide a decent infrastructure for their people. However, the situation is not so bad now, as there are some regulations between Russian government and multinationals. But more and more in recent years companies have started to rule the roost.

The other problem is one of unemployment. As companies want to improve their profitability, they’re going to be looking for the low-cost, low-wage centres. And we are just about to see a major change in the global economy because of the addition of China and India to the global labour market. There are great advantages in this, but there are a lot of problems as well, because China and India are going to provide a skilled population. Also, they’re going to provide fairly good infrastructure for the companies that are going to go out there. So we’re going to see a flight of capital from the country which is going to be sudden and dramatic. If it is too sudden and is not managed properly, we could find very severe problems in the future.

Answer the Questions:

1. Is Russia a feed tank or part and parcel of the global world?

2. What is the main advantage of globalisation?

3. Why should Russian business be careful dealing with multinationals?

4. What are the main disadvantages of globalisation?

5. What ability does globalisation take out of the hands of the local governments?

6. What problems does globalisation cause?

7. What are companies going to do to improve their profitability?

8. What countries have recently joined the global labour market?

9. What major changes can we see in the global economy?

10. What kind of population are China and India going to provide?

Text 4. Anti-globalism

Generally, the ideas of free trade, capitalism, and democracy have greatly facilitated globalisation. Supporters of democratic globalisation are sometimes called pro-globalists. They believe that the first phase of globalisation, which was market-oriented, should be followed by a phase of building global political institutions representing the will of world citizens.

The term anti-globalisation in its turn is used to describe the political stance of people and groups who oppose the neo-liberal version of globalisation. Anti-globalisation may involve the process or actions taken by a state in order to demonstrate its independence in decision-making. Anti-globalisation may occur to put brakes on the international transfer of people, goods and ideology.

Critics of the current wave of economic globalisation typically speak about the damage to the planet, and such things as increased poverty, inequality, injustice and the erosion of traditional culture. The main export of poorer countries is usually agricultural goods. It is difficult for these countries to compete with stronger countries that subsidise their own farmers.

The next aspect is exploitation of foreign workers. The abundance of cheap labour is giving the countries in power the incentive not to rectify the inequality between nations. It is true that the workers are free to leave their jobs, but in many poorer countries this would mean starvation for the worker.

The economic gap between skilled and unskilled workers is also growing very fast. Families that were once part of the middle class are forced into lower positions by massive lay-offs. It also means that people in the lower class have a much harder time climbing out of poverty because of the absence of the middle class as a stepping stone. Weak labour unions hold less power over corporations that are able to easily replace workers, often for lower wages.

The anti-globalism movement is very broad, including church groups, national liberation factions, workers, intellectuals, artists, protectionists, and others. One of the key points made by critics of recent economic globalisation is that income inequality, both between and within nations, is increasing as a result of these processes. Americanization is often regarded as a wicked part of globalisation aimed to significant growth of America's shops, markets and other objects being brought into other countries.

Answer the Questions:

1. How are supporters of democratic globalisation called?

2. What is the second phase of globalisation?

3. What does the term anti-globalisation mean?

4. What motives for anti-globalisation acts can you name?

5. What do critics of the current wave of economic globalisation usually say?

6. Why is it difficult for poorer countries to compete with stronger partners?

7. Why is exploitation of workers especially strong in the developing countries?

8. How can globalisation expand the gap between skilled and unskilled workers?

9. What groups and parties support anti-globalisation movement?

10. What do anti-globalists mean by "Americanization"?​

Text5. The World Trade Organisation

The World Trade Organisation (WTO) is the only global international organisation dealing with the rules of trade between nations. Its goal is to help producers of goods and services, exporters, and importers conduct their business. This is the youngest transnational structure but its history is great. The World Trade Organisation was founded on January 1, 1995. The WTO is the successor to the General Agreement on Tariffs and Trade signed in 1948.

The WTO has determined the following principles of trade agreements: all partners are equal; imported and local goods have equal rights on the domestic markets; trade barriers should be reduced through negotiations and agreements must be transparent and predictable; fair competition, economic development and economic reforms must be supported.

The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, represented either by the countries or by the Customs Unions. The Ministerial Conference appoints the Committee on Trade and Development, the Committee on Budget, Finance and Administration, the Committee on Trade and Environment and a number of other bodies. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. The daily work of the Ministerial Conference is handled by the General Council which administrates the activity of the Dispute Settlement Body, and the Trade Policy Review Body.

1 The General Council - the highest-level decision-making body is located in Geneva. It supervises the work of the Council for trade in goods, the Council for trade in services, etc. The General Council has representatives from all member governments and has the authority to act on behalf of the Ministerial Conference which meets about every two years.

2. The Dispute Settlement Body is made up of all member governments, and is usually represented by ambassadors. It is responsible for trade quarrels and enforcing the rules and therefore vital for ensuring that trade flows smoothly.

3. The Trade Policy Review Body (TPRB) - is open to all WTO members to undertake trade policy reviews of members.

To become a truly open economy, Russia has recently joined the World Trade Organisation. Certainly, Russia does not wait for immediate rewards from the membership. However, the long-term benefits of this membership will overweigh the initial cost. Being the member of the WTO will make it possible to rebalance our economy which still relies heavily upon selling the national oil.

Questions for discussion:

1. What kind of organisation is the WTO?

2. What is the goal of the WTO?

3. When was the WTO founded?

4. Where are the headquarters of the WTO located?

5. What are the principles of the WTO trade agreements?

6. What is the topmost decision-making body of the WTO?

7. What are the main functions of the Ministerial Conference?

8. What is the role of the General Council?

9. What is the role of the Dispute Settlement Body?

10. What is the role of the Trade Policy Review Body?

Модуль 3. Моя специальность. Особенности управления частными и государственными компаниями. Роль государственного и муниципального управления в современном обществе. Функции административного порядка. Работа в государственных структурах

Text 1.My speciality

I study at Moscow State University of Railway Engineering. It was founded in 1896 on the command of His Imperial Majesty Nicolas II. It is the leading and the largest transport institution in Russia. The university comprises several institutes. As for me, I study at the Institute of the Humanities. I am going to become a specialist in the sphere of public administration and I am looking forward with pride and confidence to my future. I am sure that I have all reasons to feel so, as the public administration manager is the major point of contact between citizens and the State. Though it is difficult to define public administration, we all have the sense of what it is. Public administration is connected with policy making and is concentrated in executive branches of government. Public administrators make polices that have a nationwide impact and may benefit millions of people.

There are special training programmes for public administration students here at the University. Such courses are usually worked out in cooperation with government agencies to help students in their studies. I always eagerly attend such trainings which may last for a week or two. They are very useful for a future young specialist. In those classes, a student learns the basic operations of running a business. There are special classes on customer service, human resources, business finance, marketing, and other similar fields related to business.

The academic year at the University is divided into two terms, at the end of each we pass exams. As for my curriculum, it includes both general and special subjects. We learn Economics, Philosophy, Systems Theory, Foreign Languages and so on. As field of science, Public Administration can be compared with Business Administration, though Public Administration programmes pay more attention to ethical and sociological aspects which are less important in business. We also study such special subjects as public affairs, public policy and political science. A public administrator is recognised as profession throughout the world. Jobs in public administration encompass a wide range of interests and abilities and can provide a great deal of personal and professional satisfaction. People in public administration jobs analyse information, implement government and public policy, manage people and resources, serve as consultants and assist in developing policy.

I like to study at the University and I will do my best to become a good specialist in the sphere of public administration. After graduating form the University I think I shall join a Master of Public Administration programme as I am eager to pursue the governmental career.

Answer the Questions:

1. What University do you study at?

2. When was your University founded?

3. What institute do you study at?

4. What kind of disciplines do you study?

5. What sphere of management does your speciality comprise?

6. What is public administration in general?

7.What aspects do Public Administration programmes pay much attention to?

8. What special subjects do students study?

9. What type of activities do public administration managers usually perform?

10. What programme must you take if you want to dedicate yourself to the governmental career?

Text 2. Business and Public Administration

All modern administrative systems are based on objective norms such as laws, rules and regulations. Administration can be defined as the universal process of organising people and resources efficiently so as to direct activities toward common goals and objectives.

Business administration is the process of managing every aspect of a business in order to maintain its growth or stability, depending on the overall goal of the owners. Most companies have a dedicated group of administrators who work to achieve the goals. Successful business administration can improve the total operations of an organisation, including employee productivity, profitability and growth. Successful business administration also requires some planning for the future of the organisation. The responsibility of business administration is great, and managers should attempt to surround the administration with individuals who will uphold the objectives of the organisation. Relationships can improve a business, but the wrong connections can do damage, so being patient and flexible should be a part of business administration.

It is not a secret that successful business models have been taken as example for the proper management of government. Today public administration is connected with politics and policy-making and concentrates in the executive branch of government. It is concerned with implementing the law. However, the study of public affairs must take into account not only the management subjects common to both private and public sectors but also that special environment in which a public servant has to live and work. Besides, public organisations are more dependent on government, more constrained by law and more exposed to political influences than a private sector. However, public administration can be regarded as a field of business, as management of all organisations in both the fields involves planning, organising, staffing, directing, controlling and budgeting. At the same time public administration is less showy. Much of its work is quiet, small scale and specialised. The anonymity of much public administration raises fears that the government policies are made by people who are not accountable for citizens. Many fear that faceless bureaucrats subvert the intentions of elected officials. Others see public administrators as mere cogs in the machinery of government.

Answer the Questions:

1. What norms are modern administrative systems based on ?

2. What is the most common definition of administration?

3. What is the aim of business administration?

4. What can successful business administration improve?

5. What type of individuals should managers try to recruit?

6. What has been taken as an example for the proper management of government?

7. How does public administration differ from the business one?

8. Why can public administration be regarded as a field of business?

9. Why do people fear faceless bureaucrats?

10. What role can public administrators play in the machinery of government?

Text 3. Public Administration of Today

Public administration is the process of managing a country’s affairs on both national and local levels in accordance with the laws adopted by legislative and executive branches of government. People working in the area of civil service are regarded as civil servants.

The field of public administration involves economic development of the country, education, housing and welfare policy as well as transportation, public health and ecology. Specialists may work at federal, state, local, and regional levels as well as in international organisations such as the World Bank or the European Bank for Reconstruction and Development. One of the fastest growing sources of public administration jobs in recent years has become the consulting field.

A Master of Public Administration is a special degree for those who wants to succeed in governmental and non-profit spheres. MPA programmes emphasise on policy analysis techniques, constitutional issues such as separation of powers, administrative law, problems of governance and power and participatory democracy.

The functions of public managers vary according to the level of management. The main responsibilities of top executives are to plan and control the organisation’s activities. Decision-making is also one of the most vital tasks for implementation of important public projects. Moreover, public administrators are engaged in the activities common for all posts in management. The activities can be grouped into four basic functions: planning, organising, directing and controlling. Planning is the process of selecting and defining how to achieve goals. Organising is employment of the staff where it will be most effective. Directing involves leading, guiding and motivating employees to work effectively. Controlling is assessing the results and taking proper policies for development.

Thus, public administration is implementation of government policies. Making a career in public administration today often means assuming more personal responsibility and professional risk. Nowadays it is necessary for the specialists of public administration to master different professional programmes for increasing the efficiency of their activities.

Answer the questions:

1. What is public administration?

2. What is a civil servant?

3. What does the field of public administration involve?

4. Where do civil servants work?

5. What type of degree do the future civil servants get?

6. What do MPA programmes emphasise on?

7. What functions of public managers can you name?

8. What are the main responsibilities of top executives?

9. What does the function of controlling mean in public administration?

10. What type of programmes should specialists in public administration master?

Text 4. Administrative Functions

Public administrators, broadly speaking, engage in a common set of functions to meet the organisation's goals. These "functions" were described by Henry Fayol as "the 5 elements of administration".

Planning - is deciding in advance what to do, how to do it, when to do it, and who should do it. It maps the path from where the organisation is to where it wants to be. The planning function involves establishing goals and arranging them in a logical order. Administrators engage in both short-range and long-range planning.

Organising - involves identifying responsibilities to be performed, grouping responsibilities into departments or divisions, and specifying organisational relationships. The purpose is to achieve coordinated effort among all the elements in the organisation. Organising must take into account delegation of authority and responsibility and span of control within supervisory units.

Staffing - means filling job positions with the right people at the right time. It involves determining staffing needs, writing job descriptions, recruiting and screening people to fill the positions.

Directing - is leading people in a manner that achieves the goals of the organisation. This involves proper allocation of resources and providing an effective support system.

Directing requires exceptional interpersonal skills and the ability to motivate people. One of the crucial issues in directing is to find the correct balance between emphasis on staff needs and emphasis on economic production.

Controlling - is a function that evaluates quality in all areas and detects potential or actual deviations from the organisation's plan. This ensures high-quality performance and satisfactory results while maintaining an orderly and problem-free environment. Controlling includes information management, measurement of performance, and institution of corrective actions.

Budgeting - incorporates most of the administrative functions, beginning with the implementation of a budget plan through the application of budget controls.

Administrator can serve as the title of the general manager or company secretary who reports to a corporate board of directors. The head of the overall operations in administration is usually referred to as the Chief Executive Officer (CEO). The CEO may have several vice presidents under him, each in charge of a different area. For example, there could be a vice president of existing operations and a vice president of expansion. While each operates independently of one another, they all receive direction from the CEO and, perhaps, the board of directors.

Answer the Questions:

1. What does the public administrator have to follow to meet the organisation's goals?

2. Who described the main"functions" of administration?

3. How many elements of administration can you name?

4. What is planning ?

5. What types of planning do public administrators engage in?

6. What must administrators take into account organising the work of the company?

7. What does the function of directing mean?

8. What is one of the crucial issues in directing?

9. What is included into the function of controlling?

10. Why is budgeting important for any company?

Text 5. People in Public Administration

Large public organisations employ many individuals. Theoretically public managers must possess higher moral and ethical standards than private employees because they have to work within very strict limits of legislation, executive orders and governmental regulations.

Although a public organisation contains a lot of different positions, the roles of political executives, desktop administrators, professionals, street-level bureaucrats and policy entrepreneurs are the most common.

Political executives such as the Secretary of the State Department, the city manager, or the region administrator occupy the top of the public organisations. Although their jobs and responsibilities are different, they all perform the function of the political aide, policy maker and top administrator. In most cases political executives are executive appointees. Elected officials cannot do everything. That is why they appoint executives and delegate their rights to them.

These loyal supporters and advisers initiate, shape, promote and oversee policy changers. Political executives may have responsibility for many major decisions. However, the ultimate authority rests with elected officials. Political executives are top-level administrators. It is a difficult role, as they are legally responsible for implementing policy. They must cut through the red tape and resistance of change to assure that people are served well.

Desktop administrators are civil servants down the hierarchy structure. They are middle managers and closely fit the general description of a bureaucrat. Whether a social worker supervisor or a project manager of a major government programme, a desktop administrator spends days on memorandums and meetings. Desktop administrators guide policy intentions into policy actions that actually change people's life. After a short probation period desktop administrators usually earn job tenure. Job tenure protects civil servants from loosing their jobs, however they may be reassigned to less important jobs of equal rank.

Professionals play the third major role in public organisations. Most professionals receive specific training and have appropriate certificates. The work of professionals involves applying their general knowledge to the specific case and requires considerable autonomy and flexibility. More and more professionals nowadays are involved in public administration.

Level-street bureaucrats such as social workers, police officers, public school teachers and public heath nurses are at the bottom of public organisations. They deal with people who are different, complex and unpredictable. A common complaint about level-street bureaucrats is that they treat people like numbers and ignore problems and unique circumstances.

With limited resources, public organisations want fewer not more clients. This differs them from private companies which want to attract more clients to earn more profits. Moreover, there are frequent conflicts between bureaucrats and their clients. Street-level bureaucrats work in situations that defy strict supervision. Most paper works and modern computerized systems are supposed to control bureaucrats, who in turn have become very skillful of how to fill out different forms to satisfy their supervisors and to maintain their own autonomy. Street bureaucrats are also policy-makers, as they often have to decide what policy to implement working with clients.

As for the policy entrepreneurs, they can be met at all levels of public organisation. They are strong managers tightly committed to specific programmes. They are skilled in getting support and realizing ideas. This role requires leadership, strategic planning and political activism. They take risks and push limits which is necessary for dynamic government.

Answer the Questions:

1. Why must civil servants possess higher moral and ethical standards than private employees?

2. What are the most common jobs in public organisations?

3. What are political executives responsible for?

4. Why is it difficult to work as a political executive?

5. What functions do desktop administrators perform?

6. What role do professionals play in public administration?

7. Who are level-street bureaucrats?

8. What is a common complaint about level-street

bureaucrats?

9. What situations do bureaucrats usually work in?

10. What qualities should policy entrepreneurs posses?

Модуль4. Организация как культурный продукт общества. Корпоративная культура и этика. Имидж предприятия. Имидж успешного предпринимателя. Фирменный стиль, репутация и торговые марки компании. Эффективное руководство

Text 1. Organisation as Cultural Product

Organisations are not merely physical, they are social and technological systems which must adopt to environmental changers in order to survive. Organisations are changing in line with new technical possibilities.

Both organisations, private and public are crowded with people. Employees bring to organisations a complex mix of fundamental and spiritual needs such as the need for shelter and health care or the need for self-actualisation, esteem and recognition. To attract and keep people and to encourage innovative performance organisations have to take into account individual needs and motivation of people and to satisfy them. That is why organisations create a system of different rewards which can be powerful incentives for efficient work. Pay, promotion, recognition and other rewards are distributed by managerial staff, while social rewards appear in the process of work. Managers should take into account that dull routine can generate lack of interest.

There are two basic groups in any organisation - formal and informal. Formal groups such as departments and committees are identified and selected by organisational leaders, while informal groups are not created by managers but involved out of the rich social environment Though people in those groups get together to share common interests, their activities may have a profound impact on the work of the organisation.

Organisations are not only places of work, they are cultural and meaningful systems. As the concept of culture is difficult to define, comparing similar public organisations in different countries one can see that their culture is different. Despite similar work and procedures, police departments of Germany and Russia differ greatly. Thus, offering a small gift may be considered corruption in one nation and quite an ordinary thing in another. Organisations are not just places of work and production. They differ in symbols and culture. The symbolic and cultural dimensions of organisations are essential to understanding their role in the society.

Answer the Questions:

1. What type of systems are organisations?

2. What type of needs do employees bring to organisations?

3. Why do organisations have to take into account personal needs of their workers?

4. What do organisations have to create to motivate people?

5. Why do managers have to grant social rewards for good work?

6. What can dull routine can generate?

7. What basic groups of any organisation can you name?

8. Why is it difficult to define the concept of culture?

9. How does the work of police departments in Germany and Russia differ?

10. What helps to understand better the role of organisations in the society?

Text 2. Creating Corporate Culture

A corporate culture is a type of organisational culture that includes various beliefs and values that define a particular company. Some types of corporate culture are determined by the founders of a company when they build the business. Other types of corporate culture are imported when companies hire more employees with diverse knowledge and experience. There are two different types of corporate cultures that define the organisational as well as the social aspects of a given business. The first type is strictly hierarchical and is aimed at control, stability and internal efficiency. The second type emphasises creativity, flexibility, and innovation over strict organisation and stability. Employees in flat hierarchical cultures interact with each other and with their managers in a drastically different way than employees in more control-oriented corporate cultures.

There are advantages and disadvantages associated with all different types of corporate cultures. A corporate culture that is too firmly based on control and stability, for instance, may stagnate because it suppresses free thought, individuality, and creativity. On the other hand, a company that allows its employees too much autonomy may be inefficient if the employees are not particularly self-motivated. Generally, a cohesive corporate culture is regarded ideal, as it can unify employees, increase overall job satisfaction, and greatly improve a business's efficiency and productivity.

Though many work cultures embrace positive values, such as loyalty, solidarity, efficiency, quality, personal development and customer service, they can also reinforce some negative attitudes. Thus, in many businesses, an unwritten rule states that the boss is always right, even when he is wrong and that working long hours is more important than achieving results.

Answer the questions:

1. What is a corporate culture?

2. What can become an impulse to the corporate culture development?

3. What happens when companies hire employees with diverse knowledge and experience?

4. What type of corporate culture is aimed at control and stability?

5. What type of corporate culture is oriented on flexibility?

6. How do managers and staff interact in flat hierarchical structures?

7. What can happen to the company strictly oriented on control?

8. What happens to the company if it gives too much autonomy to employees?

9. What type of corporate culture can be ideal?

10. What type of corporate culture will you prefer?

Text 3. Creating Corporate Ethics

The subjects covered by the company's ethics can vary greatly from one business to another. The ethical standards usually dictate how employees should act toward each other and how they should act toward non-employees. By employing the company's ethics, businesses can exercise a greater amount of control over its image. Many industries have professional ethics committees. These bodies are a step below the law and a step above a company.

In companies employees often have to follow the work ethic of a supervisor or manager. The company's expectation should be clearly identified, and the staff should know what is preferred in the company. If this includes working early hours until a particular time in the evening, this behaviour must be a norm to the senior leadership as well, so that other employees have a standard to follow. Creating the corporate ethics of the organisation, it might be useful to outline a series of expectations for the company. These expectations should be shared with members of an organisation, and employee feedback should be welcome.

The corporate ethics reflects the values, beliefs and goals of the organisation. Establishing open communication between the management and other employees supports the process of creating the right image. The way staff speak to management, to customers and to each other gives clues to the organisation's image and culture. Thus, a dress code at a company might not be formally introduced even if it is part of an employees introductory package that is received when hired. Different departments might have separate expectations for appropriate work attire, and when creating corporate image, these variations should be clearly identified and taken into account.

Answer the questions:

1. Are ethical norms equal to all companies or do they vary from one business to another?

2. How do ethical standards affect employees?

3. How can a company exercise a greater amount of control over its image?

4. What do many industries have?

5. What legal status do the ethics committees have?

6. What norms do employees usually have to follow?

7. What should be clearly identified in the company?

8. What behaviour must be a norm to the senior leadership?

9. How should the company act creating the corporate ethics?

10. What gives clues to the organisation's image and culture?

Text 4. Image of Enterprise

The image of the enterprise is the perception that the general public holds about a particular business. Many companies invest a great deal of time and other resources to influence the opinion that holds about the products offered by the business, as well as the business itself. This process of cultivating positive public relations extends to not only interaction with consumers, but also ongoing interaction with the media, labour unions, industrial associations, and other entities that have a direct and indirect impact on public opinion. One of the most basic ways of shaping the image of the enterprise is establishing and maintaining positive relationships with the general public. This effort usually begins by offering products that successfully meet the needs of customers, thus generating goodwill. As consumers come to know and trust the product lines offered by the business, they begin to share their opinions with others. This positive word of mouth helps to introduce other consumers to the products offered by the business, and makes it easier to establish a favourable perception in the minds of more people.

Along with offering products that meet customer expectations, many companies cultivate a positive corporate image by becoming involved with the communities where their goods and services are sold. This can involve anything from sponsoring a local sporting event to supporting some type of local charity.

Promoting the right kind of corporate image also involves working with the media. Journalists in both print and electronic media hold a great deal of influence with the general public. Doing so helps to ensure that when new product lines are launched, or significant events happen in the life of the enterprise, the media is much more likely to convey the news to consumers.

Businesses of all sizes want to create a corporate image that inspires confidence and trust in consumers. For this reason, a number of companies engage the services of public relations professionals who can manage any situation that may arise.

Answer the questions:

1. What does the image of the enterprise mean?

2. Why do many enterprises invest a great deal of time and other resources into their image?

3. Where does the process of cultivating positive public relations extend to?

4. How are positive relationships with the general public established?

5. How do consumers behave when thy trust their product lines?

6. What ways to cultivate a positive corporate image can a company use?

7. How do enterprises cooperate with media?

8. Do journalists really have an effect on the public?

9. What type of corporate image do most businesses want to create?

10. What service do many companies have to engage?

Text 5. Image of Successful Entrepreneur

Entrepreneur skills include good time and money management. A person must have the ability to concentrate and to engage in multiple tasks at once. Being an entrepreneur generally requires good communication skills. A person needs to be able to inform others of new ideas, talents, and efforts.

Although many people may fail to recognize it as a skill, being an entrepreneur requires the ability to concentrate. Mentioning essential entrepreneur skills one should realize that multi-tasking must be high on the list. An entrepreneur rarely has the luxury of starting and completing tasks one at a time. The list of entrepreneur skills is not complete if a person lacks the ability to recognize opportunities. When a successful entrepreneur recognizes an opportunity, he/she will carefully analyse how to act on it. One of the most evident characteristics of an entrepreneur is of being a risk taker. The risks that an entrepreneur takes include damage to finances, reputation, and livelihood.

Self-confidence is another characteristic feature of an entrepreneur. This is often necessary because entrepreneurs commonly attempt to succeed with new ideas. However, people tend to be sceptical of ideas that have not been proved to work. As a result, entrepreneurs usually have to obtain a lot of support from inner resources.

Entrepreneurs tend to be people who are highly driven. A person with an entrepreneurial spirit works toward his goals with a self-generated sense of urgency. These individuals are usually persistent. It is rare to find an entrepreneur who sets goals and achieves them without obstacles. Some of the most successful people have experienced some grave failures. Due to the type of people they are, however, they refused to give up and converted obstacles into challenges. A successful entrepreneur can develop people including himself and help then grow and become bigger and richer persons.

Answer the questions:

1. Why is time and money management one of the most important entrepreneur skills?

2. Why are communication skills actual for successful

entrepreneurs?

3. What risks does an entrepreneur usually take?

4. Why should entrepreneurs be self-confident?

5. Why are people sceptical of new ideas and decisions?

6. What type of people do entrepreneurs tend to be?

7. How do people with an entrepreneurial spirit usually work?

8. Why is persistence vital to entrepreneurs?

9. What do entrepreneurs usually meet on the way to success?10. Why do successful entrepreneurs convert obstacles into challenges?

Text 6. Corporate Image or Corporate Identity

Corporate image and corporate identity are so similar that they sometimes seem interchangeable. Both refer to the way a company presents itself to the outside world. While the two terms might seem the same, they have different meanings and implications for the company. Corporate image is the way a company looks in terms of its logos, corporate colours, design and other visual stimulation. On the other hand, corporate identity includes the effects of particular organisational culture at the corporation and the ways it reflects on the company.

One way to better understand the difference between corporate image and corporate identity is to consider a company that has recently been acquired by another. A change in the corporate image is one of the first things consumers and other people will see. If a bank has been acquired by another bank, the new bank will immediately change the logo, letter heading, and other visual signs of the old bank to reflect its own corporate logos. This change will be seen by people passing the branches of the old bank in the form of new signs and designs. The corporate colour of the new bank will also be reflected in items connected to the bank, including letters, informational booklets, and checks issued to customers. The new company is simply trying to establish its own corporate image on items that formerly belonged to the other bank, which it has acquired.

The corporate identity is simply the culture of the new bank, which replaces that of the old one. This includes how the bank relates to customers, what the bank pays its employees, how the employees dress, how management communicates with its employees, the hours of operation, and the welfare package in place for employees. The corporate identity is the definition of what the bank stands for — its motto. It answers the question of the guiding principles and ethics governing the brand of the bank. A difference between the corporate image and the corporate identity is that the corporate image is easier to change as opposed to the corporate identity, which is more lasting. If the company's logo is old and the company is trying to capture a younger market, it may redesign the logo to appeal to the younger generation, while still maintaining the elements of the old design with which the older generation can identify it. In contrast, a company might find it harder to change the perception its consumers have about it.

Answer the questions:

1. What is common between corporate image and corporate identity?

2. How do corporate image and corporate identity differ?

3. What will customers see after one company was acquired by another?

4. What will the new company immediately change after acquisition?

5. What is a new company trying to establish?

6. What will be included into the corporate identity of the newly born company?

7. What is the corporate identity responsible for?

8. What is easier to change - corporate image or corporate identity?

9. What will a company do to capture a younger market?

10. Why do companies often use the elements of the old design redirecting to the new market?

Text 7. When Brand is Grand

Brands are among a company’s most valuable assets. They are symbols, names and associations. Sometimes they signal real differences between products. Sometimes they are pure illusion. Either way, brands are akin to a product’s or company’s reputation and they influence consumers’ perceptions. Brands add value by making customers loyal and often willing to pay more for the things branded. Despite the evidence of the value of brands creating the capital of the company, this fact is often neglected by consumer-goods companies. Under pressure to make big short-run gains in sales many brand managers concentrate their attention only on the long–term commercial health of their products. They neglect brand-building activities such as advertising and price promotion. Managers often do not think of the damage that short-term thinking can do to good brands.

To launch a new consumer product is very expensive and most fail especially when old favourites become invulnerable. Brand stretching is also dangerous for the company. In order to extend a popular brand’s recognition to a new type of products, managers often overlook the basic problem – the fit between the old name and the new item. Thus, Levi Strauss’s attempt to stretch itself to cover a line of smart suits has failed. Worse, it has hurt the main brand – jeans production. It took an expensive advertising campaign to get Levi’s jeans business back on track. Another wrong attempt is to milk additional sales from premium brands by taking them down-market. Enormous use of the Gucci name almost brought the company to ruin. There were more than 14000 different Gucci products. The problem is that many brand managers at firms usually stay in their jobs for just a year or two. Companies should hire or appoint people to monitor the status of brands. These brand managers would be charged with taking a long view on guarding products images, name associations. They would have the final say over marketing plans and the decisions of ordinary brand managers.

Answer the questions:

1. What are brands?

2. What is often neglected by consumer goods companies?

3. What problems do brand managers often concentrate their attention on?

4. What brand making activities do brand managers usually neglect?

5. Why is it difficult to launch a new product nowadays?

6. What is brand stretching?

7. What problems did Levi Strauss suffer?

8. Why is it dangerous to milk additional sales from premium brands?

9. How many new products did Gucci bring to the market?

10. What type of managers should be appointed to monitor the status of brands?

Text 8. Effective Leadership

Effective leadership requires a balance of different qualities and methods that inspire followers to achieve a common goal. Effective leadership include focusing on the goal, on the group, on the individuals and being flexible enough be able to utilize these areas of focus. Early studies concentrated on such methods of leadership as authoritarian, participative and free reign. According to research, effective leaders make use of all three methods but favour one in most situations.

A similar theory of management is called situational leadership. According to the situational leadership theory a telling leader issues instructions and ignores feedback, a selling leader works to persuade followers of the wisdom of a given decision, a participating leader develops decisions together with followers, and a delegating leader allows followers to make decisions and execute them without direct guidance. The theory suggests that an effective leader must be able to utilize each of these styles based on the needs of a particular group.

Another study of leadership by Robert Blake and Jane Mouton analyses leadership on two different scales: concern for people and concern for production.

John Adair's functional leadership model suggests that effective leaders work to meet needs in three different areas: the team, the task, and the individual.

A more recent model, transformation leadership, developed by James Burns and Bernard Bass, focuses on team members and their evolution. According to this model, effective leadership inspires followers not just to contribute to the success of the group and the task at hand but to grow individually, eventually becoming leaders themselves.

The latest 3-level leadership model, also known as 3P- Public, Private and Personal leadership was designed as a practical tool to summarise what individuals have to develop technically and physically to become leaders.

There is no consensus about the individual traits that comprise an effective leader or the most effective leadership styles. Some leadership styles might work in certain situations or with some people but will be less successful in other situations or with other groups.

Answer the questions:

1. What does effective leadership require?

2. What does effective leadership include?

3. What methods did the early studies concentrated on?

4. What does a telling leader issue?

5. How does a selling leader work?

6. What style does a participating use?

7. What does a delegating leader allow followers to do?

8. What does the situational theory suggest?

9. How should effective leaders act according to the functional leadership model?

10. What does the transformation leadership model focus on?