Management techniques Information for a management decision, Discussing resource limitations in

Text 3. Business Ethics

Before you read discuss questions with your partner:

1. Are the concepts “corporate culture” and “business ethics” related?

2. \What do you think business ethics deals with?

Ethics is the system of moral principles, rules of conduct, and morality of choices that individuals make. Business ethics is the application of moral standards to business situations. Business ethics has become a matter of public concern. All business people face ethical issues daily, and they stem from a variety of sources. Although some types of issues arise infrequently, others occur regularly. Let’s take a closer look at several ethical issues.

1. Fairness and Honesty. Fairness and honesty in business are two important ethical concerns. Besides obeying all laws and regulations, business people should refrain from deceiving, misrepresenting, or intimidating others.

1. Organizational Relationships. A business person may be temped to place his or her personal welfare above the welfare of the organization. Relationships with customers and coworkers often create ethical problems – since confidential information should be secret and all obligations should be honored. Unethical behavior in these areas includes not meeting one’s obligations in a mutual agreement, and pressing others to behave unethically.

2. Conflict of Interest. Conflict of interest results when a business person takes advantage of a situation for his or her own personal interest rather than for the employer’s or organization’s interest. Such conflict may occur when payments and gifts make their way into business deals. A wise rule to remember is that anything given to a person that might unfairly influence that person’s business decision is a bribe, and all bribes are unethical.

3. Communications. Business communications, especially advertising, can present ethical questions. False and misleading advertising is illegal and unethical, and it can infuriate customers. Sponsors of advertisements aimed at children must especially careful to avoid misleading messages. Advertising of health-related products must also take precautions against deception.

4. Relationships. Business ethics involves relationships between a firm and its investors, customers, employees, creditors, and competitors. Each group has specific concerns, and each exerts some type of pressure on management. Investors want management to make financial decisions that will boost sales, profits, and returns on their investments. Customers expect a firm’s products to be safe, reliable, and reasonably priced. Employees want to be treated fairly in hiring, promotion, and compensation. Creditors require bills to be paid in time and the accounting information furnished by the firm to be accurate. Competitors expect the firm’s marketing activities to portray its products truthfully.

Task 1. Find the English equivalents:

Система моральных принципов; проблема общественной важности; сталкиваться с этическими вопросами; справедливость и честность; законы и постановления; личное благосостояние; деловая этика; конфиденциальная информация; неэтичное поведение; конфликт интересов; воспользоваться ситуацией в личных интересах; взятка; ложное и вводящее в заблуждение рекламирование; принимать меры предосторожности; принимать финансовые решения; относиться честно; правдиво отображать.

Task 2. Translate into English:

1. Деловая этика – это применение моральных стандартов к деловым ситуациям.

2. Справедливость и честность в бизнесе являются двумя важными этическими вопросами.

3. Деловой человек не должен ставить свое личное благосостояние выше благосостояния других.

4. Когда деловой человек пользуется ситуацией для своих собственных личных интересов, это приводит к конфликту интересов.

5. Все, что дается какому-либо лицу и может несправедливо повлиять на деловое решение этого лица, является взяткой.

6. Взятки противозаконны и неэтичны.

7. Ложная и вводящая в заблуждение реклама является противозаконной и неэтичной.

8. Открытость часто создает доверие и помогает строить прочные деловые отношения.

Task 3. Speak about business ethics, its basic principles and its importance in the world of business.

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Economic Tools for Management Decision Making

Managerial decision-making draws on economic concepts as well as tools and techniques of analysis provided by decision sciences. The major categories of these tools and techniques are optimization, statistical estimation and forecasting. Most of these methodologies are technical. These methods are briefly explained below to illustrate how tools of decision sciences are used in managerial decision making.

1. Optimization

Optimization techniques are probably the most crucial to managerial decision making. Given that alternative courses of action are available, the manager attempts to produce the most optimal decision, consistent with stated managerial objectives. Thus, an optimization problem can be stated as maximizing an objective (called the objective function by mathematicians) subject to specified constraints. In determining the output level consistent with the maximum profit, the firm maximizes profits, constrained by cost and capacity considerations. While a manager does not resolve the optimization problem, he or she may make use of the results of mathematical analysis. In the profit maximization example, the profit maximizing condition requires that the firm select the production level at which marginal revenue equals marginal cost. This condition is obtained from an optimization model/technique. The techniques of optimization employed depend on the problem a manager is trying to solve.

2. Statistical Estimation

A number of statistical techniques are used to estimate economic variables of interest to a manager. In some cases, statistical estimation techniques employed are simple. In other cases, they are much more complex and advanced. Thus, manager may want to know the average price received by his competitors in the industry, as well as the standard deviation (a measure of variation across units) of the product price under consideration. In this case, the simple statistical concepts of mean (average) and standard deviation are used.

Estimating a relationship among variables requires a more advanced statistical technique. For example, a firm may desire to estimate its cost function i.e. the relationship between cost concept and the level of output. A firm may also wish to the demand function of its product that is the relationship between the demand for its product and factors that influence it. The estimates of costs and demand are usually based on data supplied by the firm. The statistical estimation technique employed is called regression analysis and is used to engender a mathematical model showing how a set of variables are related. This mathematical relationship can also be used to generate forecasts.

An example from the automobile industry is befitting for illustrating the forecasting method that employs simple regression analysis. Let us assume that a statistician has data on sales of American-made automobiles in the United States for the last 25 years. He or she has also determined that the sale of automobiles is related to the real disposable income of individuals. The statistician also has available the time series data (for the last 25 years) on real disposable income. Assume that the relationship between the time series on sales of American-made automobiles and the real disposable income of consumers is actually linear and it can thus be represented by a straight line. A rigorous mathematical technique is used to locate the straight line that most accurately represents the relationship between the time series on auto sales and disposable income.

3. Forecasting

It is a method or a technique to predict many future aspects of a business or any other operation. For example, a retailing firm that has been in business for the last 25 years may be interested in forecasting the likely sales volume for the coming year. Numerous forecasting techniques can be used to accomplish this goal. A forecasting technique, for example, can provide such a projection based on the experience of the firm during the last 25 years; that is, this forecasting technique bases the future forecast on the past data.

While the term ‘forecasting’ may appear technical, planning for the future is a critical aspect of managing any organisation or a business. The long-term success of any organisation has close association with the propensity of the management of the organisation to foresee its future and develop appropriate strategies to deal with the likely future scenarios. Intuition, good judgment and knowledge of economic conditions enables the manager to ‘feel’ or perhaps anticipate the likelihood in the future. It is not easy, however, to metamorphose a feeling about the future outcome into concrete data for instance, as a projection for next year’s sales volume. Forecasting methods can help predict many future aspects of a business operation, such as forthcoming years’ sales volume projections.

Suppose a forecast expert has been asked to provide quarterly estimates of the sales volume for a particular product for the next four quarters. How should he attempt at preparing the quarterly sales volume forecasts? Reviewing the actual sales data for the product in question for past periods will give a good start. Suppose that the forecaster has access to actual sales data for each quarter during the 25-year period the firm has been in business. Employing this historical data, the forecaster can identify the general trend of sales. He or she can also determine whether there is a pattern or trend, such as an increase or decrease in sales volume over time. An in depth review of the data may unearth some type of seasonal pattern, such as, peak sales occurring around the holiday season. Thus, by reviewing historical data, there is a high probability that the forecaster develops a good understanding of the pattern of sales in the past periods. Understanding such patterns can result in better forecasts of future sales of the product. In addition, if the forecaster is able to identify the factors that influence sales, historical data on these factors (variables) can also be used to generate forecasts of future sales.

There are many forecasting techniques available to the person assisting the business in planning its sales. Take for example a forecasting method in which a statistician forecasting future values of a variable of business interest—sales, for example, examines the cause-and-effect relationships of this variable with other relevant variables. The other pertinent variable may be the level of consumer confidence, changes in consumers’ disposable incomes, the interest rate at which consumers can finance their excess spending through borrowing and the state of the economy represented by the percentage of the labor force unemployed. This category of forecasting technique utilizes time series data on many relevant variables to forecast the volume of sales in the future. Under this forecasting technique, a regression equation is estimated to generate future forecasts (based on the past relationship among variables).

В школе этого не расскажут:  Спряжение глагола s'extravaser во французском языке.

Management techniques: Information for a management decision, Discussing resource limitations in Business English, the spreadsheet

Group decision making can lead to improved outcomes, but only if a variety of conditions pertaining to group chemistry are satisfied.

Learning Objectives

Assess the advantages and disadvantages that should be considered in leveraging collaborative decision-making

Key Takeaways

Key Points

  • Group decisions involve two or more people, are participatory, and result in choices that are the responsibility of the group rather than any individual.
  • Group decision making is subject to social influences that can provide advantages as well as disadvantages in decision outcomes.
  • There are a number of potential advantages in group decision making—chief among them are shared information and more favorable outcomes achieved through synergy. Both of these advantages rely on the power of many minds undertaking a single decision.
  • Disadvantages of group decision making include diffusion of responsibility and inefficiency.

Key Terms

  • groupthink: The psychological phenomenon wherein a desire for conformity within a group results in them making an irrational decision; by actively suppressing dissenting viewpoints in the interest of minimizing conflict, group members reach a consensus without critically evaluating alternative viewpoints.
  • Homogeneity: In the context of group decision making, homogeneity refers to a set of consistent and uniform ideas, prejudices, and beliefs held by all members within a group.

Group decision making (also known as collaborative decision making) is when individuals collectively make a choice from the alternatives before them. Such decisions are not attributable to any single individual, but to the group as a whole. By definition, group decisions are participatory, and often a member’s contribution is directly proportional to the degree to which a particular decision would affect him or her. Group decisions are subject to factors such as social influence, including peer pressure, and group dynamics. These social elements can affect the process by which decisions are reached and the decision outcomes themselves. A group can make decisions by consensus, in which all members come to agreement, or it may take a majority-rules approach and select the alternative favored by most members.

Advantages of Group Decision Making

Group decision making provides two advantages over decisions made by individuals: synergy and sharing of information. Synergy is the idea that the whole is greater than the sum of its parts. When a group makes a decision collectively, its judgment can be keener than that of any of its members. Through discussion, questioning, and collaboration, group members can identify more complete and robust solutions and recommendations.

The sharing of information among group members is another advantage of the group decision-making process. Group decisions take into account a broader scope of information since each group member may contribute unique information and expertise. Sharing information can increase understanding, clarify issues, and facilitate movement toward a collective decision.

Disadvantages of Group Decision Making

Diffusion of Responsibility

One possible disadvantage of group decision making is that it can create a diffusion of responsibility that results in a lack of accountability for outcomes. In a sense, if everyone is responsible for a decision, then no one is. Moreover, group decisions can make it easier for members to deny personal responsibility and blame others for bad decisions.

Lower Efficiency

Group decisions can also be less efficient than those made by an individual. Group decisions can take additional time because there is the requirement of participation, discussion, and coordination among group members. Without good facilitation and structure, meetings can get bogged down in trivial details that may matter a lot to one person but not to the others.


One of the greatest inhibitors of effective group decision making is groupthink. Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome. By isolating themselves from outside influences and actively suppressing dissenting viewpoints in the interest of minimizing conflict, group members reach a consensus decision without critical evaluation of alternative viewpoints.

Loyalty to the group requires individuals to avoid raising controversial issues or alternative solutions, and there is a loss of individual creativity, uniqueness, and independent thinking. The dysfunctional group dynamics of the in-group produces an illusion of invulnerability (an inflated certainty that the right decision has been made). Thus the in-group significantly overrates its own decision-making abilities and significantly underrates the abilities of its opponents (the out-group). Furthermore, groupthink can produce dehumanizing actions against the out-group.

The Manager’s Role in Group Decisions

The manager’s role in group decision making is to create a supportive context for the group.

Learning Objectives

Describe the roles managers must play in supporting effective group decision-making

Key Takeaways

Key Points

  • The manager’s role is to establish the conditions for an effective group – decision outcome.
  • Managers can help promote effective decision making by effectively choosing group members, framing the decision, and organizing the decision process.
  • Productive steps a manger can take to assist group decision making include the following: define a goal, create positive working conditions, establish expectations, provide adequate resources, and give group members ample space and latitude.

Key Terms

  • norms: Behaviors or standards regarded as typical.

Decisions are often delegated to groups when members have the experience and information needed to arrive at the appropriate choice. Managers and leaders can take actions that support group decision making and lead to good decision outcomes. Managers can help promote effective decision making by effectively choosing group members, framing the decision, and organizing the decision process.

In order to maximize the potential of a group decision process, managers should take the following important steps:

  1. Establish the team goal: By articulating the dimensions of the decision, including its importance, a manager can reduce ambiguity and help group members focus their analysis, discussions, and deliberations. A clear statement of the question to be resolved can help unify the group and create cohesion that engages members and improves collaboration.
  2. Facilitate a working environment: After the decision goal is established, the working environment must allow for meaningful, honest, and open communication among group members. The manager can help establish norms about how members will interact with each other to foster constructive discourse.
  3. Set clear expectations and responsibilities: By setting expectations, managers help team members understand their decision tasks and parameters (for example, deadlines). Managers might assign roles to help structure the decision process, establish a sense of accountability for parts of the group’s work, and clarify responsibilities.
  4. Prov >

Manager and employee communicating: Managers can facilitate group decision making by setting clear expectations.

Employee Involvement in Decision Making

Involving employees in key decisions gives managers access to unique skills and tells the employees that their contributions are valued.

Learning Objectives

Distinguish the importance and inherent value of ensuring employee involvement as much as possible in the decision-making process

Key Takeaways

Key Points

  • From a managerial standpoint, employee involvement is an effective way to leverage human resources and give employees a voice in something meaningful.
  • Employee participation in decisions can lead to increased job satisfaction, organizational commitment, individual motivation, and job performance.
  • To effectively contribute to group decisions, individuals must have relevant skills and experiences.

Key Terms

  • motivation: An incentive or reason for doing something.

Group decisions can lead to better decision outcomes by bringing to bear a broader range of perspectives. By delegating a decision to a group, an organization can make effective use of the skills and knowledge of its employees.

Employee involvement: Managers use employee involvement in key decision making not only to leverage employees’ unique skills, but also to motivate them, signaling that their impact on the company is meaningful.

Another of the benefits of group decision making in an organization is its effect on employee motivation. Providing opportunities to participate in decisions is a way to give employees a voice in something meaningful. Doing so can have positive effects on job satisfaction, organizational commitment, individual motivation, and job performance.

Most commonly employees are involved in decisions that directly affect how their work is done. For instance, many quality-control practices include opportunities for workers to discuss and select ways to improve how they produce goods or deliver services. Self-managed teams have even broader responsibilities for decisions, such as how their work is organized, scheduled, and assigned.

To effectively participate in group decisions, employees must have the necessary skills and experience. Without relevant knowledge, participants in group decision making may not grasp the issues, know how to analyze alternatives, or be able to determine which option to choose. For instance, it would not be reasonable to expect the same level of contribution from a new recruit fresh out of college as from a more experienced employee familiar with the organization and its business priorities.

Techniques for Reaching a Group Consensus

Reaching consensus typically requires identifying and addressing the underlying concerns of group members.

Learning Objectives

Define consensus and the varying ways in which it can be achieved in a group dynamic

Key Takeaways

Key Points

  • Consensus decision making aims to reach agreement through collaboration, cooperation, inclusivity, and participation.
  • Seeking consensus is not always ideal, since it can take additional time and result in suboptimal choices.
  • Two approaches to making group decisions by consensus are the Quaker model and the consensus-oriented decision-making (CODM) model.

Key Terms

  • consensus: A process of decision-making that seeks widespread agreement among group members.

Consensus decision making aims to reach agreement through collaboration, cooperation, inclusivity, and participation. Group decisions made by consensus seek resolutions that are satisfactory to all group members and meet all of their concerns. Consensus decision making is not adversarial or competitive, but rather seeks to do what is best for the group. Group members treat each other equally and solicit the input of all participants.

Making decisions by consensus is not necessarily ideal or even desirable. In an effort to please everyone, the decision may satisfy the least common denominator but not produce the best outcomes. Developing a consensus can be time consuming, and is thus more difficult to achieve when there is urgency, significant time constraints, or resource limitations.

Another way to think about consensus is as the absence of objections. In order to arrive at a group consensus, majority opinion holders must overcome any unwillingness of group members to accept a given choice. While group members may be willing to go along with a proposal, they do not actually need to favor it above another choice.

One approach to consensus building is the Quaker model. It provides a way to structure a decision process that emphasizes listening among group members. The Quaker model calls for members to refrain from speaking twice until after all group members have been heard from, the effect of which is to neutralize dominating personality types. Another key feature of the Quaker model is that it relies on a single person to act as the facilitator, or moderator, who makes sure the discussion flows according to an empathetic process. By articulating the emerging consensus, members can be clear on the decision as it emerges, and, since their views have been taken into account, will be likely to support it.

Consensus flow diagram: This diagram shows a process of steps through which consensus can be reached, by starting with concerns that are raised, moving to a discussion, then a proposal, and then further testing for consensus.

Another formal technique for consensus building comes from the consensus-oriented decision-making (CODM) model. It has seven key steps:

  1. Framing the topic
  2. Open discussion
  3. Identifying underlying concerns
  4. Collaborative proposal building
  5. Choosing a direction
  6. Synthesizing a final proposal
  7. Closure

The CODM model outlines a process of how proposals can be collaboratively built with the full participation of all stakeholders. This model lets groups be flexible enough to make decisions when they need to, while still following a format based on the primary values of consensus decision making.

Английский для экономистов (учебник английского языка) (Д. А. Шевчук)

Английский для экономистов – учебное пособие предназначено для студентов экономических специальностей и рассчитано на лиц, обладающих знанием нормативной грамматики английского языка и имеющих словарный запас в 2000 лексических единиц. Английский язык для экономистов состоит из 8 разделов, охватывающих широкий круг тем по экономике и бизнесу: экономика, организация, бизнес, менеджмент, маркетинг, реклама, деньги, банки, финансы, бухучет, аудит, резюме экономиста на английском языке и др. Все тексты взяты из оригинальных английских и американских источников. Разделы (равно как и тексты) могут прорабатываться в представленной последовательности или выборочно – в зависимости от целей, задач и уровня подготовки группы, изучающей английский для экономистов. Это эффективный учебник английского языка для экономистов (деловой английский для экономистов).


  • ПРЕДИСЛОВИЕ (Introduction)
  • ***

Приведённый ознакомительный фрагмент книги Английский для экономистов (учебник английского языка) (Д. А. Шевчук) предоставлен нашим книжным партнёром — компанией ЛитРес.

If the leader is good, the followers will be good.

– the control and organizing of a business or other organization;

– those stuff within the firm who exert control over its activities on behalf of owners.

includes the chief executive of an organization, his or her deputy or deputies, the board of directors and the managers in charge of the divisions or departments of the organization.

consists of the managers to whom top management delegates the day-to-day running of the organization.

– company director responsible for the day-to-day running of a company. Second in the hierarchy only to the chairman, if there is one; the managing director is the company’s chief executive.

– a person controlling or administrating a business or part of a business.

Ex. 1. Do you know the meaning of the following derivatives? Show it with the help of your own sentences.

to manage; manageable; management; manager; manageress; managerial.

Translate the following sentences. Pay attention to the words in italics.

1. The reserved the right to make managerial decision.

2. What you need is advice from your bank manager.

3. I wish you could manage the time to come and to talk to us.

4. Private banks are being nationalized, and are to be managed with workers’ participation.

5. They are part of my management team.

6. The baby can be greatly influenced by the parents’ management.

7. She has been working as the manageress of a bookshop.

8. It is perfectly manageable task to tackle systematically.

Ex. 2. Write down a synonym for each of the words on the left. Choose the one on the right. In what do they differ?

Ex. 3. The following words can be classified into 5 groups. What are they? Show the difference in their meaning with the help of your own sentences.

Choice, have, solve, dilemma, own, profit, posses, variant, cope with, to process, option, tackle, problem, handle, return, predicament, gain, alternative.

Ex. 4.Match the definitions with the words given below.

fee, executive, insure, skill, capacity, profile, applicant, charisma, ensure, guideline, superior.

1. Ability to do something well.

2. Short biographical or character sketch.

3. Payment made for professional advice or services.

4. Person or body with managerial or administrative responsibility.

6. Secure compensation in the event of loss or damage by advance regular payments.

7. In a higher position; of higher rank.

8. Principle directing action.

9. Power to certain, receive, experience, or produce.

10. The ability to attract, influence, and inspire people by your personal qualities.

11. Someone who formally asks to be given something, such as a job or a place at a college or university.

Ex. 5. Give the Russian equivalents to the following.

Involved in management; production oriented; impose regulations, ever-more-complex environment; encompasses both science and art; business executives; code of conduct; develop the body of knowledge; with respect to the second criterion; the issue is much less clear-out; is consistent with their interest; self-interest or concern for others; decision-making machinery; cross-cultural skills; consulting fee; character attributes; compare against the places set earlier; authority.

Ex. 6. Translate the following text into Russian in written form.

People working for a company are referred as its workforce, employees, staff, or personnel and are on its payroll.

In some context, especially more conservative ones, employees and workforce refer to those working on the shopfloor of a factory actually making things. Similarly, staff is sometimes used to refer only to managers and office-based workers. This traditional division is also found in the expressions white-collar and blue-collar.

Another traditional division is that between management and labor.

Personnel departments are usually involved in finding new staff and recruiting them, hiring them, or taking them on, in a process of recruitment. Someone recruited is a recruit, or in American English only, a hire.

They are also involved when people are made to leave the organization, or fired. These responsibilities are referred to, relatively informally, as hiring and firing. If you leave the job voluntarily, you quit.

Middle-managers are now most often mentioned in the context of re-engineering, delaying, downsizing, or rightsizing: all these expressions describe the recent trend for companies to reduce the numbers of people they employ, often by getting rid of layers of managers from the middle of hierarchy.

An organization that has undergone this process is lean and its hierarchy is flat.

Read the text once again and in turn explain, in your own words, the meaning of the following terms:

1. workforce, employee, staff, personnel, a recruit, a hire, layer, labour.

2. white-collar, blue-collar.

3. to recruit, to employ, to hire.

4. to fire, to quit, to get rid of.

Do you know any other synonyms to the words given above?

Management is the art and science of making appropriate choices. To one degree or another, we are all involved in managing and are constantly making decisions concerning how to spend or use our resources.

Like most things in our modern, changing world, the func–tion of management is becoming more complex. The role of the manager today is much different from what itwas one hundred years, fifty years or even twenty-five years ago. At the turn of the century, for example, the business manager’s objective was to keep his company running and to make a profit. Most firms were production oriented. Few constraints affected management’s decisions. Governmental agencies imposed little regulations on business. The modern manager must now consider the environment in which the organisation operates and be prepared to adopt a wider perspective. That is, the manager must have a good understanding of management principles, an appreciation of the current issues and broader objectives of the total economic poli–tical, social, and ecological system in which we live, and he must posses the ability to analyze complex problems.

The modern manager must be sensitive, and responsive tothe environment – thatis he should recognize andbe able to evaluate the needs of the total context in which his business functions, and he should act in accord with his understanding.

Modern management must posses the ability to interact in an ever-more-complex environment and to make decisions that will allocate scarce resources effectively. A major part of the manager’s job will be to predict what the environment needs and what changes will occur in the future.

Organizations exist to combine human efforts in order to achieve certain goals. Management is the process by which these human efforts are combined with each other and with material resources. Management encompasses both science and art. In design–ing and constructing plans and products, management must draw on technology and physical science, of course, and, the behavioral sciences also can contribute to management. However much you hear about «scientific management» or «management science», in handling people aid managing organizations it is necessary to draw on intuition and subjective judgment. The science por–tion of management is expanding, more and more decisions can be analyzed and programmed, particularly with mathematics. But although the artistic side of management may be declining in its proportion of the whole process it will remain central and critical portion of your future jobs. In short:

• Knowledge (science) without skill (art) is useless, or dangerous;

• Skill (art) without knowledge (science) means stagnancy and inability to pass on learning;

Like the physician, the manager is a practitioner. As the doctor draws on basic sciences of chemistry, biology, and physiology, the business executive draws on the sciences of mathematics, psychology, and sociology.

1. The function of management is becoming more complex. Why?

2. What must management possess nowadays?

3. Management encompasses both science and art. In what can we see it?


Different scholars offer different sets of principles of management. The most famous are the following fourteen. But the main principle should be read as follows: «there is nothing rigid or absolute in management affairs, it is all a question of proportion». Accordingly if you view the following list of these principles as a set of important topics and sometimes applicable guidelines for managers, you will be keeping close to the spirit in which they were originally suggested.

1. Division of work. Within limits, reduction in the number of tasks a worker performs or the number of responsibilities a manger has can increase skill and performance.

2. Authority. Authority is the right to give orders and enforce them with reward or penalty. Responsibility is accountability for results. The two should be balanced, neither exceeding nor being less than the other.

3. Discipline. Discipline is the condition of compliance and commitment that results from the network of stated or implied understandings between employees and managers. Discipline is mostly a result of the ability of leadership. It depends upon good supervisors at all levels making and keeping clear and fair agreements concerning work.

4. Unity of command. Each employee should receive orders from one superior only.

5. Unity of direction. One manager and one plan for each group of activities having the same objective is necessary to coordinate, unify, and focus action.

6. Subordination of individual interests to general interest. Ignorance, ambition, selfishness, laziness, weakness, and all human passion tend to cause self-serving instead of organization-serving behavior on the job. Managers need to find ways to reconcile these interests by setting a good example and supervising firmly and fairly.

7. Remuneration of personnel. Various methods of payment may be suitable, but amounts should reflect economic conditions and be administered to reward well-directed effort.

8. Centralization. Like other organisms, organizations need direction and coordination from a central nervous system. But how much centralization or decentralization is appropriate depends upon the situation. The degree of centralization that makes best use of the abilities of employees is the goal.

9. Scalar chain (line of authority). The scalar chain is the chain of command ranging from the top executive to the lowest ranks. Adhering to the chain of command helps implement unity of direction, but sometimes the chain is too long, and better communications and better decisions can result from two or more department heads solving problems directly rather than referring them up the chain until a common superior is reached.

10. Order. Both equipment and people must be well chosen, well placed, and well organized for a smooth-running organization.

11. Equity. Kindliness and justice will encourage employees to work well and be loyal.

12. Stability of tenure of personnel. Changes in employee assignments will be necessary, but if they occur too frequently they can damage morale and efficiency.

13. Initiative. Thinking through a plan and carrying it out successfully can be deeply satisfying. Managers should set aside personal vanity and encourage employees to do this as much as possible.

14. Esprit de corps. Build teamwork.

1. Dwell on the importance of each principle in the work of a manager. Try to exemplify your answer.

No one has had more influence on managers in the 20 th century than Frederick W.Taylor, an American engineer. He set a pattern for industrial work which many others have followed, and although his approach to management has been criticized, his idea are still of practical importance.

Taylor founded the school of Scientific Management just before the 1914-18 war. He argued that work should be studied and analyzed systematically. The operations required to perform a particular job could be identified, then arranged in a logical sequence. After this was done, a worker’s productivity would increase, and so would his/her wages. The new method was scientific. The way of doing a job would no longer be determined by guesswork and rule-of-thumb practices. If the worker followed the prescribed approach, his/her output would increase.

Taylor’s solutions to the problems were based on his own experience. When he was with Bethlehem Steel, Taylor criticized management and workers. He conducted many experiments to find out how to improve their productivity. He felt that managers used not the right methods and the workers did not put much effort into their job. They were always ‘soldiering’ – taking it easy. He wanted both groups to adopt a new approach to their work. The new way was as follows:

1. Each operation of a job was studied and analyzed;

2. Using the information, management worked out the time and method for each job, and the type of equipment to be used;

3. Work was organized so that the worker’s only responsibility was to do the job in the prescribed manner;

4. Men with the right physical skills were selected and trained for the job.

The weakness of his approach was that it focused on the system of work rather than on the worker. With this system a worker becomes a tool in the hands of management. Another criticism is that it leads to de-skilling – reducing the skills of workers. And with educational standards rising among factory workers, dissatisfaction is likely to increase. Finally, some people think that it is wrong to separate doing from planning. A worker will be more productive is he/she is engaged in such activities as planning, decision-making, controlling and organizing.

1. Give some information about F.W Taylor and his contribution to management.

2. Speak for and against his principles.


Management by objectives (MBO) is a system which was first described by Peter Drucker in 1954. Since then, MBO has attracted enormous interest from the business world, and its principles have been applied in many of the world’s largest companies.

P. Drucker emphasized that an organization and its staff must have clear goals. Each individual must understand the goals of the enterprise he/she works for, and must make contribution to them. It is also vital that the individual knows what his/her manager expects of her. An individual must know what sort of results he/she is expected to achieve.

If an organization uses MBO approach, it must pay careful attention to planning. A special feature of MBO is that the subordinate participates with the manager in developing objectives.

Various kinds of MBO systems are used in organizations. Here is an example of how a programme might work in a company. The programme consists of several stages. First, the subordinate’s job is defined. Next, his/her current performance is evaluated. Then, new objectives are developed by the subordinates and their managers. Finally, the programme is put into action. Later, there are periodic reviews of the person’s performance, and his/her progress is checked.

The subordinates and the manager discuss the objectives and make plans for achieving them. The manager may help in some way, perhaps by providing more training for the subordinate or buying more modern machines. From time to time, the subordinate and the manager meet to discuss progress. It is vital that the manager receives feedback from the subordinate on performance and achievements.

There are many benefits of MBO. The system helps the subordinates to see clearly their role in the organization. They have a say in how their job is performed, and what goals should be. Workers feel more responsible and motivated. MBO is a good technique for assessing and individual’s performance. People are judged on results, rather than on the personal feelings and prejudices of the managers.

The main limitations of the system are that it is time-consuming and may create a lot of paperwork. In practice, MBO programmes are often fully supported by managements. This could be because managers are not always skilled at interviewing and giving guidance.

1.Who is the ‘father’ of MBO?

2. What are the principles of the system?

3. How does the programme work?

4. What are the benefits and limitations of the system?

Read the text. What is the main idea of the text? Divide it into logical parts. Define the key-sentence of each part.

No school, professor or book can make you a manager. Only you can do this, and you can become a manager only by managing. Of course, you can learn the skills that are extremely helpful, particularly in such clearly defined areas as accounting, statistics, law, and finance. But this will not make you a manager. Experience is the only teacher. Experience is, however, is not the uniformly effective teacher. An old aphorism criticizes the person who has worked for 20 years but has only reexperienced the first year 20 times. Learning is not automatic. What schools can do, and what books can do is to provide you with some insights and intellectual tools to be applied against your experience. Most of you are practical people; certainly most managers are. You are concerned about doing things than about thinking about them. You are more concerned with action than with contemplation. Most business students and managers are uneasy about theory. It is abstract and difficult, too unrelated to real problems, it seems, ‘too academic’ and just ‘too theoretical’. But theory is very important because you and all men and women of action are also theorists. No matter how pragmatic you consider yourself, no matter how rooted in reality a manager views himself, you and he operate on theories. You all possess your own theories about motivation, authority, objectives and change. You will need them – and you will have them whether you know it or not. You will be a better manager if you are aware of your assumptions and you examine them periodically and modify them when necessary. Nothing is as practical as a good theory. A great deal of management theory and practice must be described as ‘common sense’. For the objectives of management may be defined as the formulation of priorities and plans.


The criteria necessary for professional status include three major components:

– An acceptable level of competence in a specified field of knowledge.

– The placing of the interests of society before personal interests in carrying out functions of the profession.

A code of conduct as behavior imposed upon members and usually enforced internally.

If we examine the field of managementin light of thesecharacteristics, what shall we find out?

Thereis no question that management as a discipline has developed a body of knowledge, which is becoming more and more sophisticated part of the curriculum in many academic institu–tions. Research in the field, particularly in the quantitative and behavioral areas, shows promise of making even more signi–ficant advances in the future. More and more academic institu–tions offering business programs are devoting their primary attention to graduate education in the area of management, with a particular emphasis on both theoretical and practical research. A growing number of business schools are making efforts to integrate faculty move closely with members of the business community so as to apply research findings to actual business problems.

Конец ознакомительного фрагмента.


  • ПРЕДИСЛОВИЕ (Introduction)
  • ***

Приведённый ознакомительный фрагмент книги Английский для экономистов (учебник английского языка) (Д. А. Шевчук) предоставлен нашим книжным партнёром — компанией ЛитРес.

Limitations of Decision Making in Management — Shortcomings

Limitations of Decision Making

Shortcomings / limitations of a decision making process in management :-

1. Time Consuming

A lot of precious time is consumed for decision making. Individual decisions take a lot of time because the manager has to study the merits and demerits of all the alternatives. He also has to take advice from many people before making a decision. All this consumes a lot of time. Group decisions are also time consuming. This is because it involves many meetings and each member has to give his opinion. This results in delayed decisions or no decisions.

2. Compromised Decisions

In group decisions, there is a difference of opinion. This results in a compromised decision. A compromised decision is made to please all the members. It may not be a correct and bold decision. The quality of this decision is inferior. So it will not give good results on implementation.

3. Subjective Decisions

Individual decisions are not objective. They are subjective. This is because the decisions depend on the knowledge, education, experience, perception, beliefs, moral, attitude, etc., of the manager. Subjective decisions are not good decisions.

4. Biased Decisions

Sometimes decisions are biased. That is, the manager makes decisions, which only benefit himself and his group. These decisions have a bad effect on the workers, consumer or the society.

5. Limited Analysis

Before making a decision the manager must analyse all the alternatives. He must study the merit and demerits of each alternative. Then only he must select the best alternative. However, most managers do not do this because they do not get an accurate date, and they have limited time. Inexperienced researchers and wrong sampling also result in a limited analysis. This limited analysis results in bad decisions.

6. Uncontrollable Environmental Factors

Environmental factors include political, social, technological and other factors. These factors are dynamic in nature and keeps on changing everyday. The manager has no control over environmental factors. If these factors change in the wrong direction, his decisions will also divert and go wrong.

7. Uncertain Future

Decisions are made for the future. However, the future is very uncertain. Therefore, it is very difficult to take decisions for the future.

8. Responsibility is Diluted

In an individual decision, only one manager is responsible for the decision. However, in a group decision, all managers are responsible for the decision. That is, everybody’s responsibility is nobody’s responsibility. So, the responsibility is diluted.

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