Part one. Guidelines for better

GENERAL MANAGEMENT

 

 

Учебное пособие

 

Рекомендовано Сибирским региональным учебно-методическим

центром высшего профессионального образования

для межвузовского использования в качестве учебного пособия

для студентов специальностей 080502 «Экономика

и управление на предприятии (в торговле)», 080505 «Управление

персоналом», 080507 «Менеджмент организации»

и 080102 «Мировая экономика»

 

 

Кемерово 2007

УДК 802.1

ББК 81.2 Англ

З-43

Рецензенты:

канд. пед. наук, доцент, зав каф. ин. языков Кемеровского технологического института пищевой промышленности

Г.А. Жданова;

канд. пед. наук, доцент кафедры английской филологии №1 Кемеровского государственного университета

Л.А. Коняева

 

 

Зверева, Н.М.

З-43 General Management [Текст]: учебное пособие / Н.М. Зве-

рева. – Кемерово: Кемеровский институт (филиал) ГОУ

ВПО «РГТЭУ», 2007. – 144 с.

 

Текст дан в авторской редакции

 

 

Учебное пособие, составленное на основе аутентичных материалов английской и американской профессиональной литературы, может быть использовано как для аудиторной работы, так и для самостоятельных занятий английским языком.

Особенностью данного учебного пособия является изложение психологического и коммуникативного аспектов управления работой людей. Современный профессиональный язык и система упражнений, предполагающие владение английским языком на уровне не ниже среднего (Intermediate), способствуют расширению терминологического запаса по лексике менеджмента и могут являться основой ролевых и деловых игр.

 

УДК 802.1

ББК 81.2 Англ

©Кемеровский институт (филиал)

ГОУ ВПО «РГТЭУ», 2007

© Зверева Н.М., 2007

ПРЕДИСЛОВИЕ

 

Учебное пособие предназначено для студентов второго курса специальностей 080502 «Экономика и управление на предприятии (в торговле), 080505 «Управление персоналом», 080507 «Менеджмент организации», студентов третьего курса специальности 080102 «Мировая экономика», продолжающих изучение английского языка. Данное пособие разработано в соответствии с требованиями ГОС ВПО и Программой по дисциплине «Иностранный язык» для высшего профессионального образования.

Цель пособия – совершенствование у студентов умений и навыков в таких видах речевой деятельности, как просмотровое, поисковое и аналитическое чтение, говорение и письмо на базе профессионально ограниченного языка менеджмента. Практическая направленность пособия заключается в совершенствовании навыков устной речи через обсуждение предлагаемых тем в ситуациях профессионального общения

Пособие состоит из двух разделов, включающих аутентичные тексты для обучения базовой лексике по темам и тексты дополнительного чтения.

Материал первого раздела структурно организован в шесть учебно-тематических блоков (Units). Каждый блок открывается предварительно самостоятельным ознакомлением студентов с лексикой по теме, упражнениями по работе над правильным произношением трудных слов и закреплению базовой лексики. Основной тематически ведущий текст сопровождается заданиями и упражнениями на контроль понимания, закрепление ключевой лексики, выработку индивидуального подхода к оценке содержания. Второй текст каждого блока сопровождается упражнениями коммуникативной направленности, носящими творческий характер (Discussion).

Второй раздел пособия (Texts for Supplementary Reading) состоит из текстов, соответствующих тематике каждого учебно-методического блока первого раздела и расширяющих знания студентов в области теории менеджмента. Тексты второго раздела могут быть использованы как для внеаудиторного чтения, так и для аудиторной работы со студентами.

В заключительной части пособия прилагаются комментарии к текстам (Commentary on the Texts), а также возможные решения к некоторым творческим заданиям (Commentary on the Exercises).

INTRODUCTION

There are many excellent books that give you a solid background on management theory. The aim of this textbook is not only to give a formal introduction to the ins and outs of management and introduce the basic organizational forms. Much more it also attempts to get you to look at management as it is: a highly competitive, entrepreneurial activity that requires good instincts and good thinking, rather than the learning of techniques.

The road to general management goes via such jobs as group product manager, marketing manager, marketing director to the general manager’s chair. This does not however mean that every product manager will become head of major company or should even see his future in that position but if you do not have the attitudes and enthusiasm of a general manager when you are young and thrusting, how will you ever cultivate them twenty years later? Those that succeed are not smarter than the rest: instead they have learnt from an early age the attitudes that produce success. What are these attitudes?

They are:

· a compulsion to solve problems rather than just to identify them;

· an impatience to make things happen and a willingness to take on hard work that is necessary;

· an ability to distinguish the essentials from the peripherals and to concentrate solely on those essential;

· and a commitment to the success of the company.

Naturally a textbook cannot give you these attitudes but it can help you to see which attitudes need to be cultivated and focus your aim and ambitions in a way that actual experience may take years to do. With such a focus you have an automatic advantage over your competitors.

MANAGEMENT SKILLS

Text A

MANAGEMENT

Part 2. Managers

Management applies to managers at all organizational levels, to small and large organizations, to profit and not-for-profit enterprises, to manufacturing as well as service industries.Organizations are two or more people working together in a structured, formal environment to achieve common goals. Managers provide guidance, implementation, and coordination so those organizational goals can be reached. The modern manager coaches employees of the organization to develop teamwork, which effectively fulfills their needs and achieves organizational objectives. The traditional autocratic organization with its hierarchical system of management and an overbearing "boss" that forces performance out of people is no longer needed. The modern manager provides an atmosphere of empowerment by letting workers make decisions and inspiring people to boost productivity.

A classic definition of a”manager” is that “leaders do the right thing and managers do things right.” A more standard definition is usually something like “managers work toward the organization’s goals using its resources in an effective and efficient manner.” Managers are charged with responsibility of taking actions that will make it possible for individuals to make the best contributions to group objectives.

The scope of authority held may vary and the types of problems dealt with may be considerably different, but all managers, including top managers, middle managers and first-line managers, obtain results by establishing an environment for effective group endeavour. Top (or executive) managersare responsible for overseeing the whole organization and typically engage in more strategic and conceptual matters, with less attention to day-to-day detail. Top managers have middle managers working for them and who are in charge of a major function or department. Middle managers may have first-line supervisors working for them and who are responsible to manage the day-to-day activities of a group of workers.

Note that you can also have different types of managers across the same levels in the organization. A project manager is in charge of developing a certain project, e.g., development of a new building. A functional manager is in charge of a major function, such as a department in the organization, e.g., marketing, sales, engineering, finance, etc. A product manager is in charge of a product or service. Similarly, a product line manager is in charge of a group of closely related products. General managers are in charge of numerous functions within an organization or department.

In a very real sense, in all kinds of organizations, whether business or non-business, the logical and most desirable aim of all managers should be a surplus – managers must establish an environment in which people can accomplish group goals with the least amount of time, money, materials and personal dissatisfaction, or they can achieve as much as possible of a desired goal with available resources. In a non-business enterprise, such as a police department or hospital, that are not responsible for total business profits, managers still have goals and should strive to accomplish as much as possible with available resources.

ACROSS

 

3 Someone who manages non-management employees.

5. Managers below president but above supervisors.

6.Verifying that actual performance matches the plan.

7. Gathering and arranging resources.

DOWN

 

1. Management accountable for the overall organization.

2. Guiding, leading and overseeing.

4. Deciding what is to be done.

Text B

HISTORICAL DEVELOPMENT

There are difficulties in tracing the history of management. Some believe it cannot have a pre-modern history. Others, however, see management-like activities in the pre-modern past. Some writers trace the development of management thought back to Sumerian traders and ancient Egyptian pyramid builders. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issues of management systematically. But innovations such as the spread of Arabic numerals (5th to 15th centuries) and the codification of double-entry book-keeping (1494) provided tools for management assessment, planning and control.

The Industrial Revolution began in the eighteenth century and transformed the job of manager from owner-manager to professional, salaried manager. Prior to industrialization, the United States was predominantly an agricultural society. The production of manufactured goods was still in the handicraft stage and consisted of household manufacturing, small shops, and local mills. The inventions, machines, and processes of the Industrial Revolution (such as, the use of fossil fuels as sources of energy, the railroad, the improvement of steel and aluminum metallurgical processes, the development of electricity, and the discovery of the internal-combustion engine.) transformed business and management With the industrial innovations in factory-produced goods, transportation, and distribution, big business came into being. New ideas and techniques were required for managing these large-scale corporate enterprises.

Two large-scale institutions, the church and the military, served as examples of control for these new managers. Many of the management terms and techniques used today have their basis in ecclesiastical and military authority (for example, superior, subordinate, strategy, and mission). Military commanders need only give orders, and then discharge, penalize, and demote those who do not carry them out and reward those who do.

Some argue that modern management as a discipline began as an off-shoot of economics in the 19^th century. Classical economists such as Adam Smith and John Stuart Mill provided a theoretical background to resource allocation, production and pricing issues. About the same time, some innovators developed technical production elements such as standardization, quality control procedures, cost accounting, interchangeability of parts, and work planning. Many of these aspects of management existed in the US slave economy. There, 4 million people were, as the contemporary usages had it, "managed" in profitable quasi-mass production.

By about 1900 we find managers trying to place their theories on a way they thought was a thoroughly scientific basis. In 1911 the first college management textbook was written by J. Duncan. In 1912 Yoichi Ueno introduced Taylorism (see “Commentary on the texts”) to Japan and was the first management consultant to create the "Japanese-management style". His son then pioneered Japanese quality assurance.

As the general recognition of managers as a class solidified during the 20th century and gave perceived practitioners of management a certain amount of prestige, so the way opened for popularized systems of management ideas to peddle their wares. In this context many management fads may have had more to do with pop psychology than with scientific management theory.

Towards the end of the 20th century, business management came to consist of six separate branches, namely:

- Human resource management;

- Operations management or production management;

- Strategic management;

- Marketing management;

- Financial management;

- Information technology management responsible for Management Information Systems.

In the 21st century we find it increasingly difficult to subdivide management into functional categories in this way. More and more processes simultaneously involve several categories. Instead, we tend to think in terms of the various processes, tasks, and objects subject to management.

There are also branches related to nonprofits and government such as public administration, public management, and educational management. Further, management programs related to civil society organizations have also spawned programs in nonprofit management and social entrepreneurship.

Exercise 17. Discussion.

A. As it was mentioned in the text the 20^th century business management involved six branches.

· To your mind, what activities does each of the branch imply?

· Do you think new branches will appear in the 21^st century?

B. Ideals can become goals if they are consciously decided. You can identify your own profile of the ideal manager.

Think of the best manager you have known or heard about. Identify effective managerial characteristics by generating as many characteristics as possible.

1. Rank the characteristics most important to you.

2. Describe the resulting profile in a summary essay fashion.

3. In your essay, predict how this profile can affect your future career. Remember, you can determine your role as manager.

 

Text A

PLANNING PROCESS

Part 1.Strategic Planning

As mentioned above managers create and maintain an internal environment, commonly called the organization, so that others can work efficiently in it. A manager's job consists of planning, organizing, directing, and controlling the resources of the organization. Every organization must plan for change in order to reach its ultimate goal. Effective planning helps an organization adapt to change by identifying opportunities and avoiding problems. It sets the direction for the other functions of management and for teamwork. Planning improves decision-making. All levels of management engage in planning to start with strategic planning.

Strategic planning is the process of developing and analyzing the organization's mission, overall goals, general strategies, and allocating resources. A strategy is a course of action created to achieve a long-term goal. Goals focus on desired changes. Traditionally strategic planning has been done annually. However, many companies are doing away with annual business plans altogether and moving to a system of continuous planning, to permit quicker response to changing conditions. Thus, the strategic plan involves adapting the organization to take advantage of opportunities in its constantly changing environment. The planning process is rational and amenable to scientific approach to problem solving. The tasks of the planning process include:

· Define the mission.

· Conduct a situation or SWOT analysis by assessing strengths and weaknesses and identifying opportunities and threats.

· Set goals and objectives.

· Develop related strategies (tactical and operational).

· Monitor the plan.

Define the mission.

A mission (see “Commentary on the texts”) is the purpose of the organization. The mission statement is broad, yet clear and concise, summarizing what the organization does. It directs the organization, as well as all of its major functions and operations, to its best opportunities. Then, it leads to supporting tactical and operational plans, which, in turn leads to supporting objectives. A mission statement should be short - no more than a single sentence. It should be easily understood and every employee should be able to recite it from memory. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization's potential.

Set goals and objectives.

Strategic goals and objectives are developed to bridge the gap between current capability and the mission. They are aligned with the mission and form the basis for the action plans. Objectives are sometimes referred to as performance goals. Generally, organizations have long-term objectives for such factors as return on investment, earnings per share, or size. Objectives elaborate on the mission statement and constitute a specific set of policy, programmatic, or management objectives for the programs and operations covered in the strategic plan. They are expressed in a manner that allows a future assessment of whether an objective has been achieved.

 

Part 2.Tactical plans

Develop related strategies (tactical and operational). Tactical plans are based on the organization's strategic plan. In turn, operational plans are based on the organization’s tactical plans. Top level managers set very general, long-term goals that require more than one year to achieve. Examples of long-term goals include long-term growth, improved customer service, and increased profitability. Middle managers interpret these goals and develop tactical plans for their departments that can be accomplished within one year or less. In order to develop tactical plans, middle management needs detail reports (financial, operational, market, external environment). Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. It is the process of making detailed decisions about what to do, who will do it, and how to do it.

Managers and supervisors implement operational plans that are short-term and deal with the day-to-day work of their team. Operational plans include a budget, scheduling the work of employees, identifying needs for resources, policies, procedures, methods, and rules. The terms themselves imply different degrees of scope.

A policy is a general statement designed to guide employees' actions in recurring situations. Thus, policies are guidelines.

A procedure is a sequence of steps or operations describing how to carry out an activity and usually involves a group. An example of a procedure is the sequence of steps in routing of parts.

A method sets up the manner and sequence of accomplishing a recurring, individual task. An example of a method is the steps in cashing a check. A rule is an established guide for conduct. An example of a rule is "No Smoking."

Monitor the plan. A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. To develop an environmental monitoring procedure, short-term standards for key variables that will tend to validate the long-range estimates must be established. Although favorable long-range values have been estimated, short-term guidelines are needed to indicate if the plan is unfolding as hoped. Next, criteria must be set up to decide when the strategy must be changed. Feedback is encouraged and incorporated to determine if goals and objectives are feasible.

 

ACROSS

2. Sequence of steps to carry out task.

4. Scheme for accomplishing goals.

5. Established guide for conduct.

7. Finding and adapting best practices.

8. Sequence of steps for group effort.

 

DOWN

1. End that the organization strives to attain.

3. Purpose or reason for existing.

4. General statement to guide actions.

6. Action to achieve a long-term goal.

Exercise 13. Discussion.

Conduct a situation analysis of your organization: study the list of questions and spread them over the components of SWOT analysis.

· Are our technologies obsolete?

· What are the emerging technologies?

· What financing is available?

· What substitute products exist on the market?

· Do we have a superior reputation?

· Is there a shortage of resources we get outside?

· How skilled is our workforce?

· Is there a possibility of growth of existing market?

· What are the new regulations?

· Are our facilities outdated?

 

Situation Analysis
Strengths	Weaknesses	Opportunities	Threats

 

Compare the results obtained by you and your partner. Give arguments for your discussion. In the back of the book you will find a discussion of the possible solutions. See “Commentary on the Exercises”.

Text B

FORCASTING EMPLOYMENT NEEDS

 

Part 2.Productivity

Organizations are concerned with productivity. Productivity is output per unit of input, usually expressed as a ratio. Measurement of productivity helps managers examine critical aspects of production. It is usually determined by a single-factor index, such as output per hour of labor or output per amount of capital invested, or a combined-factor index which integrates different inputs into one overall measure.

An important influence on productivity is the quality of the work force. A major investment necessary to productivity is training. In order to meet new challenges, even the best-educated employees need to increase and adapt their skills. Training refers to improving an employee's knowledge, skills, and attitudes so that he or she can do the job. All new employees (or current employees in new jobs) should be trained. Cross training prepares an employee for a job normally handled by someone else. Also, training is advisable when new processes, equipment or procedures are introduced into the workplace.

Training starts with an organization analysis. By focusing on strategy and examining sales forecasts and expected changes in production, distribution and support systems, employers can determine which skills will be needed and to what degree. A comparison with current skill levels is used to estimate staff and training needs. Task analysis identifies the elements of current or future tasks to be done. Personal needs analysis involves asking employees and managers, either in an interview or in a self-administered questionnaire, to analyze their training needs. In general, agreement between managers and employees tends to be low, so it is important that both parties agree to decisions about the training of employees.

Training can enhance most inherent abilities and can improve employee performance. An assessment of ability should be made during the job-matching process by screening applicants against the skill requirements of the job. Employees must be given the technical and personnel resources to effectively perform assigned tasks. Motivation is represented by an employee's desire and commitment and is manifested as effort.

ACROSS

1. Output per unit of input.

5. Introduces new employees to the organization.

7. Training for a job handled by someone else.

8. Something that moves a person toward a goal.

9, Conscious recognition of a need.

DOWN

2. Improving knowledge, skills, and attitudes.

3. Specific position held by an employee.

4. Additional job-related training.

6. Anything required, desired or useful.

.

Exercise 18. Discussion.

A. How do you see your future profession? What kind of work are you interested in? Why?

· well paid work;

· interesting work;

· work in a large and famous company;

· quiet work;

· work in an industry which has future prospects;

· prestigious work;

· a kind of work such as not to sit the whole day in the office;

· to travel a lot;

B. Please, discuss advantages and disadvantages of your future profession.

· Do you think that your future profession is prestigious?

· Do you think it will be still prestigious and well paid by the time you graduate?

· How difficult is it to find a good work in your field?

· Is there competition in your group?

· Do you think that competition among your coeds is a good stimulus to study well or just makes communication between you more difficult?

Describe the results in a summary essay fashion.

Text A

ORGANIZING PROCESS

Part 2.Organizing Function

The organizing function deals with all those activities that result in the formal assignment of tasks and authority and a coordination of effort. The manager staffs the work unit, trains employees, secures resources, and empowers the work group into a productive team. The steps in the organizing process include reviewing plans, listing all tasks to be accomplished, dividing tasks into groups one person can accomplish - a job, grouping related jobs together in a logical and efficient manner, assigning work to individuals and delegating authority to establish relationships between jobs and groups of jobs.

After reviewing the plans, usually the first step in the organizing process is departmentalization. Once jobs have been classified through work specialization, they are grouped so those common tasks can be coordinated. Departmentalization is the basis on which work or individuals are grouped into manageable units

It is impractical for the supervisor to handle all of the work of the department directly. In order to meet the organization's goals, focus on objectives, and ensure that all work is accomplished, managers must delegate authority. Authority is the legitimate power of a supervisor to direct subordinates to take action within the scope of the manager's position. By extension, this power, or a part thereof, is delegated and used in the name of a supervisor.

Delegation is the downward transfer of formal authority from superior to subordinate. The employee is empowered to act for the manager, while the manager remains accountable for the outcome. Delegation of authority is a person-to-person relationship requiring trust, commitment, and contracting between the manager and the employee.

The manager assists in developing employees in order to strengthen the organization. He or she gives up the authority to make decisions that are best made by subordinates. This means that the manager allows subordinates the freedom to make mistakes and learn from them. He or she does not supervise subordinates' decision-making, but allows them the opportunity to develop their own skills. The manager lets subordinates know that he or she is willing to help, but not willing to do their jobs for them. The manager is not convinced that the best way for employees to learn is by telling them how to solve a problem. This results in those subordinates becoming dependent on the manager. The manager allows employees the opportunity to achieve and be credited for it.

An organization's most valuable resource is its people. By empowering employees who perform delegated jobs with the authority to manage those jobs, managers free themselves to manage more effectively. Successfully training future managers means delegating authority. This gives employees the concrete skills, experience, and the resulting confidence to develop themselves for higher positions.

Delegation provides better managers and a higher degree of efficiency. Thus, collective effort, resulting in the organization's growth, is dependent on delegation of authority.

ACROSS

3. Fundamental rethinking and radical redesign of business

process (abbreviation).

4. Organizations with many layers of management.

10. Groups jobs.

11. Obligation to do assigned tasks.

DOWN

1. Official organizational structure which defines policies,

procedures, and goals.

2. Groups of people working toward common goals.

5. To transfer the formal authority downward.

6. Answering for your actions.

7. Organizations of only one or two levels of management.

8. A rational, goal-directed hierarchy, with formal controls.

9. Spontaneous social relationships.

 

Exercise 12. Discussion.

 

You want a promotion. You want your boss to delegate more work to you so that you can learn new aspects of the business. You realize that accepting all assignments that the boss decides to delegate to you can be beneficial.

But, you realize that there are pitfalls involved in accepting all delegated assignments. You have heard of the Peter Principle. The Peter Principle states that employees who do a good job will be continually promoted until they have risen to a level of management at which their skills are no longer suitable for the new kinds of tasks required. Thus, all employees rise to their level of incompetence, where they are of no further use to the organization and need to be bypassed.

· When you are handed a key assignment, what critical questions are you to ask yourself to determine if you can do it? Formulate your questions in a written form.What actions will you undertake?

· Is it sometimes necessary to say “no” to the boss?

• If you are not able to do the assignment well, will your bass respect your judgment to refuse the assignment?

In the back of the book you will find a discussion of the possible solutions. See “Commentary on the Exercises”.

Text B

POWER AND AUTHORITY

Part 1. Authority

Organizational structure is a means of facilitating the achievement of organizational objectives. Such structures are not static, but dynamic. They reorganize in response to changing conditions that occur in the environment, new technology, or organizational growth. Organization structures are dependent upon the employees whose activities they guide. Managers rely upon power and authority to ensure that employees get things done.

Authorityis the legitimate power of a supervisor to direct subordinates to take action within the scope of the supervisor's position. Formal authority in the organization can be traced all the way back to the U.S. constitutional right to own property. The owner of the organization has the authority to make decisions. For example, entrepreneurial firms have an informal arrangement of employees and centralization of decision-making authority, the owner.

There are three forms of authority: line authority, staff authority, and team authority.

Line authority is direct supervisory authority from superior to subordinate. Authority flows in a direct chain of command from the top of the company to the bottom. Chain of command is an unbroken line of reporting relationships that extends through the entire organization that defines the formal decision-making structure. It helps employees know to whom they are accountable, and whom to go to with a problem. Line departments are directly linked to the production and sales of specific products. Managers - in line departments, such as marketing and production - give direct orders, evaluate performance, and reward or punish those employees who work for them. Unity of command within the chain states that each person in an organization should take orders from and reports to only one person. This helps prevent conflicting demands being placed on employees by more than one boss. However, the trend toward employee empowerment, fueled by advances in technology, has tempered the importance of being accountable to only one superior. Span of control refers to the number of employees that should be placed under the direction of one manager. Spans within effective organizations vary greatly. The actual number depends on the amount of complexity and the level of specialization. In general, a wide span of control is possible with better-trained, more experienced, and committed employees.

Staff authority is the authority that is based on expertise and which usually involves advising line managers. Staff members are advisers and counselors who aid line departments in making decisions but do not have the authority to make final decisions. Staff managers help line departments decide what to do and how to do it. They coordinate and provide technical assistance or advice to all advisors, such as accounting, human resources, information technology, research, advertising, public relations, and legal services.

Team authority is granted to committees or work teams involved in an organization's daily operations. Work teams are groups of operating employees empowered to plan and organize their own work and to perform that work with a minimum of supervision. Team-Based structures organize separate functions into a group based on one overall objective. Empowered employees create their own schedules, design their own processes, and are held responsible for outcomes. This facilitates efficiencies in work process, and the ability to detect and react to changes in the environment. Employees with the skills and knowledge to manage more than one specialized task are able to promptly provide customers with quality products and services. Cross-functionally training team allows any member to perform a variety of problem-solving tasks.

Part 2. Power

In addition to authority, managers have more personal sources of power to draw upon for getting things done. Everyone has power in one form or another and it is by exercising this power that organizations get things accomplished. Managers who are capable of achieving their objectives independently of others are said to possess strength. When managers involve and incorporate others into their plans and activities they are making use of power. Involving employees in setting objectives and making decisions as it relates to their jobs empowers everyone, and results in greater job satisfaction and commitment, as well as increased productivity.

Power is the ability to exert influence in the organization beyond authority, which is derived from position. The manager’s personal power could include job knowledge, personal influence, interpersonal skills, and ability to get results, persuasive ability, and physical strength. There are six sources of power: legitimate, coercive, reward, expert, referent, and information. Legitimate power is a result of the position a person holds in the organization hierarchy. This position power is broader than the ability to reward and punish, as members need to accept the authority of the position. Coercive power is the threat of sanctions. It is dependent on fear and includes, but is not limited to the ability to dismiss, assign undesirable work, or restriction of movement. Reward power results in people doing what is asked because they desire positive benefits or rewards. Rewards can be anything a person values (praise, raises, and promotions). Expert power comes from expertise, skill, or knowledge. Referent power refers to a person who has desirable resources or personal traits. It results in admiration and the desire to emulate. Information power is based upon the persuasiveness or content of a communication and is independent of the influencing individual.

In most instances, managers do not need to offer incentives or threaten retribution to get employees to do what they request. They influence employees because the employees want to follow. This power to influence comes from the employees granting authority to the manager.

Exercise 16. Discussion.

 

A person is thought to possess power because he or she has something that someone else wants. Development of all types of power is a common characteristic of successful managers.

· Recall some occasions in which you have exercised the different forms of power: legitimate, coercive, reward, expert, referent and information.

· Which forms of power do you use most frequently? What prompts you to use those forms of power?

· Which forms of power do you rarely or never use? What keeps you from using some forms of power?

· Are you accustomed to working under pressure? Do you think coercive power facilitates the achievement of organizational objectives?

Give your reasons.

Notes

* human nature being what it is   *we become more guarded   *and it is not unreasonable to want more

т.к. человеческая натура остается такой, какая она есть… мы становимся более настороженными и нет причины для того, чтобы не стремиться к большему

Others? Do you make them

a. tense;

b. relaxed;

c. enthusiastic;

d. subdued;

e. open;

f. guarded.

When you feel good, do you

a. pass it on, sharing the positive mood;

b. lose the positive effect of your own good mood by buttoning up.

Text A

LEADING

 

An organization has the greatest chance of being successful when all of the employees work toward achieving its goals. Since leadership involves the exercise of influence by one person over others, the quality of leadership exhibited by managers is a critical determinant of organizational success. This quality is a compound of at least four major components:

- the ability to inspire;

- the ability to understand people;

- the ability to use power effectively;

- the ability to act in a manner that will develop a climate facilitating responding to and arousing motivations.

The ability to inspire followers to apply their full capacities to a project is considered to be the most important. While the use of motivations seems to focus on subordinates and their needs, inspiration also comes from group heads. They have qualities of charm and appeal that give rise to loyalty, devotion, and a strong desire on the part of followers to promote what leaders want. This is not a matter of need-satisfaction, it is, rather, a matter of giving unselfish support to a chosen leader.

The ability to understand people means appreciating the fact that human beings have different motivations at different times and in different situations. As in all practices, it is one thing to know motivation theory, kinds of motivating forces and the nature of a system of motivation, and another thing is to be able to apply this knowledge to people and situations.

A leader should be aware of the nature and strength of human needs and should be able to define and design ways of satisfying them. A leader who understands the elements of motivation is more able to administer so as to get the desired responses.

The third component of leadership is power. Everyone has power in one form or another and it is by exercising this power that organizations get things accomplished. The leader's personal power could include job knowledge, personal influence, interpersonal skills, and ability to get results, persuasive ability, and physical strength.

The fourth component has to do with the style of the leader and the climate he or she develops. Almost every role in an organized enterprise is made more satisfying to participants and more productive for the enterprise by those who can help others to fulfill their desire for such things as money, status, power, or pride of accomplishment.

The terms “managership” and “leadership” treated by some people as synonyms should be distinguished. A leader can be a manager, but a manager is not necessarily a leader. The leader of the work group may emerge informally as the choice of the group. If a manager is able to influence people to achieve the goals of the organization, without using his or her formal authority to do so, then the manager is demonstrating leadership.

The key point in differentiating between leadership and management is the idea that employees willingly follow leaders because they want to, not because they have to. Leaders may not possess the formal power to reward or sanction performance. However, employees give the leader power by complying with what he or she requests. On the other hand, managers may have to rely on formal authority to get employees to accomplish goals.

The essence of leadership is followership. In other words it is the willingness of people to follow that makes a person a leader. Moreover, people tend to follow those whom they see as providing a means of achieving their own desires, wants and needs.

Leadership may not only respond to subordinates’ motivations but also arouse or dampen them by means of the organizational climate they develop. Both those factors are as important to leadership as they do to managership.

Ideally, people should be encourages to work with zeal and confidence. Zeal is ardour, earnestness and intensity in the execution of work; confidence reflects experience and technical ability.

Leaders act to help a group achieve goals through the maximum application of its capabilities. They do not stand behind a group to push and prod; they place themselves before the group as they facilitate progress and inspire the group to accomplish organizations goals.

The fundamental principle of leadership is this: since people tend to follow those who, in their view, offer them a means of satisfying their personal goals, the more managers understand what motivates their subordinates and how these motivations operate, and the more they reflect this understanding in carrying out their managerial actions, the more effective they are likely to be as leader