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BASIC CONCEPTS OF MANAGEMENT

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I. WHAT IS MANAGEMENT: DEFEINITION AND OVERVIEW

Although there have been always good managers, management has been studiedscientifically mainly by academics and practitioners since the beginning of the 20th century. It is

not accidental that this growing interest in the understanding of management has been nurturedby and in turn benefited the rising industrialism that has so changed and characterized themodern world.

Management, as defined in the dictionary, it is the act, art, or manner of managing, orhandling, controlling, directing, etc.; skill in managing; executive ability. A modern managermight characterize it more as the accomplishment of an organization's goals by the defining ofgoals, organization of work, motivation of others, staffing of the positions, the control of thelabor, material, and evaluation of the completed effort.

Managers are managers because of what they do the task of this booklet is to describeand analyze functions of management so the reader will be able to describe the tasks of themodern executive in any sphere.

Unfortunately in management, it is difficult to find standard definitions for manycommonly used terms, yet a common vocabulary and a common understanding are vital tosuccessful communication. As we go along in this booklet, we are going to develop acommon vocabulary for managers, a vocabulary understood and agreed upon by most in themanagement field.

Perhaps the most important place to start is with an understanding of what managementis. You will find many different definitions in various texts, all usually variations of the samethemes. Over time, there has been and continues to be a shift in emphasis within the definitions.Let us think about this evolution for a minute by looking at two definitions.

In 1980, the President of the American Management Association (AMA) used thisdefinition of management: Management is getting things done through other people.

Now look at a current definition: Management is working with and through otherpeople to accomplish the objectives of both the organization and its members.

What are the differences between the two?There are three key differences that should be highlighted. The more recent definition:

1. places greater emphasis on the human being in the organization;2. focuses attention on the results to be accomplished, on objectives, rather than just things oractivities;3. adds the concept that accomplishment of the members personal objectives should beintegrated with the accomplishment of organizational objectives.

In looking at the current definition, we come to the conclusion that management is botha science and art. We also have to view the manager as an individual, to distinguish between the

role as a manager and the role as a technician, following a vocational field. And when a personis a manager, he or she is doing the same thing no matter at what level in an organization. Everymanager plans, organizes, staffs, coordinates, motivates, leads, and controls.

Planning is probably the most important activity in the managers life. The manager mayask, What is the objective of all my actions? In the planning processes, it is very important toestablish an objective in order to get a team together, determine duties and tasks, and begin the

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process of delegation. Only with established objectives can a manager effectively control andsubsequently evaluate performance.

Many skills are required to master the challenging nature of managerial work to meet thechanging trends in management. The most important skills and competencies are those thatallow managers to assist others in becoming more effective and productive in their work. We

can classify the critical skills of managers into three categories: technical (or operational),human, and conceptual. Although all three skills are essential for managers, their relativeimportance tends to vary by level of managerial responsibility. If we view the levels ofmanagerial responsibility in the form of a diagram:

Level of Management Essential Managerial skillsTop Vice president and higher Conceptual (the ability to think conceptually and solvecomplex problems with longer term consequences for the enterprise

Middle Managing other managers or supervisors Human (the ability to work well withothers with intermediate-term consequences

First First level of supervision Technical (the ability to apply expertise and perform aspecial task(s) with proficiency with shorter term consequences

What arethe personal competencies for managerial success:

1. Leadership ability to influence others to perform tasks;2. Self-objectivity ability to evaluate oneself realistically;3. Analytical thinking ability to interpret and explain patterns in information;4. Behavioral flexibility ability to modify personal behavior to reach a goal;5. Oral communications ability to express ideas clearly in oral presentations;6. Written communication ability to express ones ideas clearly in writing;7. Personal impact ability to create a good impression and instill confidence;8. Resistance to stress ability to perform under stressful conditions;Tolerance for uncertainty ability to perform in ambiguous situations;

Notes:to nurture to help to develop, to take care for and encourage the growth of sb/sth: to nurture afriendship, a talent, a new project;to instill- to cause somebody gradually to acquire a usually desirable quality: instilling a senseof responsibility in/into ones children;

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Terms for study:

accountability - ( -; )

authority - ( , ; )delegation - ( - )management - 1. ; ; 2. ; ;to carry out management - to take over management - management activities - management competencies - new conditions of economic management - economic management restructuring - effective economic management - methods of management, methods of managing - administrative methods of managing - - management bodies - steering, central management bodies - restructuring of the steering foreign economic bodies - appropriate managing body management system - to update the entire management system - management based on economic incentives - , competency or competence - with competence - to be beyond competence - to be within, to fall under, to fall within, to come within competence - management functions -responsibility - ( ; )skill of managers - technical skill - (, ; , - )human skill - ( , ; )

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conceptual skill - (, , ; , )

KEY TERMS:

(are to be learned by heart)

Management is working with and through other people to accomplish the objectives of boththe organization and its members;Management activities include planning, organizing, staffing, coordinating, motivating,leading, and controlling; getting results effectively through other people by process ofdelegation;Technical activities the specialist functions of an individual, or those that derive from his/hervocational field;Responsibility the duty or task to be performed;Authority the power to act for someone else;Accountability the obligation to be held responsible for what was expected or what happenedthat was unexpected

Exercise 1. Read the following explanation of two synonyms with the meaning = to help

something to develop and then translate what follows paying attention to the Russian

equivalents:

1. To nurture to spend a lot of time and effort thinking about and helping a plan, idea orfeeling to develop;To foster to help a skill, feeling, idea etc to grow and develop over a period of time;

Translate the following:

The President has nurtured the idea of nuclear arms reduction for at least seven years.During those long years in the refugee camp, deep grievances were nurtured.3. The classroom activities are intended to foster childrens language skills.4. It had been the governments policy to foster close ties with neighboring states.5. As a record company director, his job is to nurture young talent.6. The group wants to nurture democracy in some African countries.7. She wants to stay at home and nature her children, not go out to work.8. Winifred nurtured ambitions for her daughter to be a surgeon.9. They were discussing the best way to foster democracy and prosperity in the world.10. Im trying to foster an interest in classical music in my students.11. European Union is an ideal that has been nurtured since the post-war years.12. These sessions are designed to foster better working relationships.

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Exercise 2. Read the note about the term managementtaken from the Oxford dictionary of

economics and translate it into Russian:

1. Management the decision-making role in organizations. If things are going smoothly, thereis not much for management to do, but if things go wrong or new opportunities arise, somebody

has to decide on hiring and firing workers, investing in new machines or scrapping old ones,marketing new products and dropping old ones, and how to raise the necessary finance. The roleof management is to take these decisions.2. The people who do the managing. This may involve a hierarchy, with junior, branch, orassistant managers exercising limited discretion, and the Managing Director as the overall bossof an organization, laying down general lines of policy, and hiring and firing assistantmanagerial staff to carry out the decisions.

Exercise 3. Give the Russian equivalents to go with the word management(=people):

a) Junior, middle, senior, top management;b) To be under new management, change of management, a management team;

Exercise 4. Give the Russian equivalents to go with the word management(=control):

a) Aggressive, brilliant, careful, day-to-day, inefficient, efficient, general, inspired, intelligent,poor, skilled, sound, strategic, strong, weak

Exercise 5. Find in the text words and expressions close on meaning to the following:

happening by chance; in a way that is large or important enough to have an effect on sthor to be noticed; animation, action; essential distinction; interest, inspiration, motive, incentive,reason, stimulus; aim, purpose, target; to accent, to accentuate, to bring to the fore, toemphasize; development, growth, progress, progression, maturation; accomplishment,achievement

Exercise 6. Answer the questions following the basics of the text:

What is management?How does the 1980 definition of management differ from the current definition?What is the difference between management activities and technical activities?What should happen as a manager moves up in an organization in terms of management

activities vs. technical activities?How would you explain the process of delegation to a new manager?

Exercise 7. Fill in the blanks with the corresponding italicized words or word

combinations, insert the corresponding prepositions when necessary:(Management, current, management activities, to increase, to decrease, the process ofdelegation)

... is working with and through other people to accomplish the objectives of both theorganization and its members.

The ... definition places greater emphasis ... the human element in the organization; focuses onthe results to be accomplished, i.e., objectives rather than activities; and adds the concept thatthe accomplishment of members' personal objectives should be integrated with theaccomplishment of organizational objectives.

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... are those activities that involve getting results effectively through others by the process ofdelegation. Technical activities are the special function of an individual following avocational field.

As management activities and demands ... , involvement in technical (or vocational) activitiesshould ... .

To understand ... (i.e., managing by getting results effectively through the others), one mustunderstand the concepts of responsibility, authority, and accountability. Although a managercannot delegate ultimate responsibility, he/she can delegate authority. It is through thecombination of sharing responsibility through assignment and delegating authority that amanager can hold other levels accountable for getting things done.

Exercise 8. Give English equivalents using the active vocabulary and the Economic

Dictionary:management

, , , , , , , , , , , , - , , , , , , , , , steering, central management bodies - , , , , ; ,

Exercise 9. Lets explore a wide aspect of the idea of the word management which

expresses a different idea, make up sentences with each meaning under consideration.

Each line starts with the keyword:

management- conduct of affairs, running, handlingcommission - managership, agencyauthority - care, charge, controlsurveillance - superintendence, oversightskill- art of managementbusiness management- work study, management study, time and motion study*adhocracy policy - organization, masterminding, decision-making, housekeeping, husbandry,

economics, political economy, statesmanshipgovernment governance - menage, regimelaw-making legislation - regulationcommand-direction, responsibility, control, directorshipcaptaincy superiority - dictatorship, leadership, premier-ship, chairmanship

* A special subject appears as need arises, for present purposes; , ,, ; ad hoc - .

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Exercise 10. Translate the following using a dictionary if necessary:

1. , , , .

2. .3. -, .4. - , , .5. , .6. .7. . .

Exercise 11. Supply objects to go with the following verbs:

to develop, to sign, to think about, to come to, to distinguish, to do, to plan, tocoordinate, to motivate, to lead, to control, to establish, to get together, to begin, to evaluate, tosupervise, to demand, to master, to challenge, to assist, to relate, to perform, to modify, toexpress clearly, to create, to get, to delegate, to share, to assign, to be accountable for

Exercise 12. Make up a consistent presentation using the following connectors at your

option from (firstof all, furthermore, likewise, because of this, as a result, what's more,for example, last but not least, accordingly, consequently, better still, all in all) on the

topics:

The definition of management and the managerial role, management activities vs. technicalactivities.

Management skills and competencies, personal competencies for managerial success.

What kind of education offers the best route to top management positions in your country?

The personal competencies for managerial success.

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MANAGEMENT DECISION- MAKING: TYPES, LEVELS,

STYLES

1. WAYS OF THINKING ABOUT BUSINESS DECISION-MAKING

Analysis of the managerial function reveals that virtually every manager, no matter whathis or her official title, makes decisions during the course of business. This points to decision-making as the common function of managers, and some writers have used the term "decision-maker" in place of manager.

The decision-making process is the sequence of events taken by management to solvebusiness problems, a systematic process that follows a sequence of problem identification,alternative solution generation, consequences analysis, solution selection and implementation,evaluation, and feedback. We must clarify the ways in which management thinks aboutdecisions, the general types of decisions, preferred styles of decision-making, the organizationallevels at which the various kinds of business decisions are made, and the conditions thatinfluence managerial decision-making.

Linear thinking

As contemporary business has become more complex. There has been a growingconsensus that effective decision-making must take the complex nature of business intoaccount. The most simplistic approach, however, to the solution of business problemsexemplifies linear thinking. This assumes that each problem has a single solution, the solutionwill only affect the problem area, not the rest of the organization, and, once implemented, asolution will remain valid and should be evaluated only for how well it solves the problem.Although there is allure for managers in the very simplicity of a linear thinking solution, it oftendoes not prove an effective way of the sequence of events. In the rapidly changing environmentsof modern business. There are at least three major difficulties with this approach to problem-solving.

Since the solution affects not only the problem area but also the rest of the organization,the results of the solution may not be anticipated. Parts of the organization nor considered in theoriginal problem-solving efforts may be effected by the solution and react in unanticipatedways. A manager may get more than was originally bargained for.

Even if the results of a solution are only those desired and intended, the focus on asingle problem area ignores the interrelationships among organizational elements and may leadto a simplistic solution that does not solve the larger problem.

Linear thinking assumes that problems, once defined, and solutions, once implemented,are always valid and ignores the rapidly changing nature of the environments of business.

Such difficulties have lead many business thinkers and practitioners to take a differentapproach to business decision-making. This new approach is called systems thinking.

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Systems thinking

Systems thinking is a more contemporary and encompassing approach to problem-solving that assumes that problems are complex and related to a situation, that solutions not

only solve the problem but will also impact on the rest of the organization and should beevaluated on how well they solve the problem (intended results) and effect the totalorganization(unintended results), and further, that neither problems nor solutions remainconstant - situations change, problems evolve , and new solution are constantly necessary.

A system thinking approach does not view problems as discrete but sees them as relatedto all aspects of an organization. Organizations are composed of interrelated systems andprocesses, and any change in one organizational aspects affects all others. A system thinkerwould therefore consider the interrelationships among systems and processes of theorganization before implementing a solution. That solution will be evaluated on the basis of allresults produced, as cited earlier. Further, there is the recognition that not only do circumstanceschange, requiring new solutions. But solutions themselves also function to changecircumstances. It is therefore necessary, after implementing any solution, to evaluate the effectof that solution and provide feedback to the organization as it begins anew the problem-solvingprocess. Problem-solving is therefore a dynamic process as new solutions create new realitiesand those new circumstances require new solutions.

You should remember:

Linear thinking stresses that problems have only one solution and do not affect the restof the organization, and, once a solution is found, that it remains constantly valid.

Systems thinking, however, asserts that problems are complex, have more than onecause and more than one solution , and are interrelated to the rest of the organization. Thesolution selection process under systems thinking features an evaluation of the effects of anysolution on the whole organization, not just the problem area. Systems thinking also maintainsthat problems and their subsequent solutions are not constant, but constantly changing. But mustbe continually reexamined - problem-solving process.

Notes:anew (adverb literary) - 1. to start life anew to begin a different job, start to live in a differentplace etc., especially after a difficult period in your life: She resolved to start life anew inIreland; 2. if you do something anew, you start doing it again;to encompass - 1. to include a wide range of ideas, subjects, etc.: The study encompasses social,political, and economic aspects of the situation; 2. to completely cover or surround something:The houses encompassed about one hundred square meters ;to interrelate - if two things interrelate or you interrelate them, they are connected and have aneffect on each other: a model interrelating population, capital and natural resources;allure - attraction; charm: the allure of fame/foreign travel;

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Terms for study:

decision-making process - feedback - 1. 2. ;

linear thinking - ( , , , )non - programmed decision - operational decision - systems thinking - solution - alternative solution - basic solution - complete solution - complex solution - compromise solution - equilibrium solution - feasible solution - ; final solution - general solution - initial solution - near optimal solution - possible solution - probabilistic solution - reasonable, sensible solution - trial solution - trial-and-error solution - viable solution - to arrive at a solution , to find a solution - to achieve solution of a problem - to offer a solution - approach - ( , ), alternate approach - analytical approach - one-sided approach - positive approach - practical approach - priority approach - statistical approach - systems approach - step-by-step approach - worst-case approach - integrated approach - unified approach -

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KEY TERMS:

Decision-making process the sequence of events taken by management to solve managerialproblems, a systematic process that follows a sequence of problem identification, alternative

solution generation, consequences analysis, solution selection and implementation, evaluation,and feedback.

Linear thinking a simplistic approach to problem-solving that assumes that each problem hasa single solution, the solution will only affect the problem, not the rest of the organization, and,once implemented, a solution will remain valid and should be evaluated only on how well itsolves the problem.Systems thinking a more contemporary and complex approach to problem solving that assumesthat problem are complex and related to a situation and solutions not only solve the problem butwill also impact the rest of the organization and should be evaluated for how well they solve theproblem (intended results); further assumes that neither problems nor solutions remain constant- situations change, problems change, and new solutions are constantly necessary.

Exercise 1. Give Russian equivalents for the word combinations to go with the word

approach:

to adopt, to attempt, to change, to cling to, to choose, to decide on, to employ, to favour, tofollow, to have, to make, to modify, to pursue, to recognize, to reject, to settle for, to show,to take, to try, to use, to welcome;

aggressive, balanced, basic, belligerent, bold, broad, broad-based, brutal, careful, careless,cautious, clear, concentrated, (un)constructive, cool, coordinated, crude, determined,(in)direct, dispassionate, doctrinaire, energetic, firm, flexible, logical, low-key, mature,measured, neutral, novel, partisan, positive, pragmatic, realistic, (un)reasonable, resolute,revolutionary, rigid, rigorous, scholarly, scientific, sensitive, slapdash, soft, tentative, timid,traditional, (un)usual, useful, useless, vigorous

Exercise 2. Study the explanation of the list of the synonyms to the meaning = to include

or deal with two or more subjects, areas, periods etc at the same time and then translate what

follows paying attention to the Russian equivalents:

to cover - to include something; to deal with or to apply to; to direct attention to;to encompass - a formal word meaning to include or deal with a very wide range of ideas,subjects, etc;to embrace - if a word or way of describing something embraces several things they areincluded within its meaning;to span - if a book, film, plan etc spans a period of time it includes everything within the period;


1. The Certificate course lasts two years and covers seven basic subjects. 2. The new law hasbeen designed to cover all incidents of fraud. 3. The telephone directory doesnt cover addresses

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outside the city. 4. The report covers the whole conference of the management staff. 5. Theexams only a month away and we havent even covered the whole course, never mind startedrevising. 6. The new regulations cover precisely where and when peaceful marches can takeplace. 7. The general need for consumer protection is encompassed in Section 5. 8. The festivalis to encompass everything from music, theater and ballet to literature, cinema and visual arts.

9. The EU proposed the creation of a free trade zone encompassing the entire Westernhemisphere. 10. There were warnings that this problem was going to be huge and all-encompassing (=involving everything). 11. The word culture embraces both artistic andsociological aspects of a society. 12. Were trying to develop an all-embracing policy whichtackles every aspect of education. 13. Heimat is a vivid social drama spanning sixty years inthe life of one small village. 14. The essay spans a period of over 600 years, from about 1900BC. 15. Her knowledge spans the whole political history of England.

Exercise 3. Explain the meaning of the following words and phrases in English:

trial-and-error solution; decision-maker; simplistic approach; a sequence of problemidentification; to focus on a single approach; a growing consensus; to exemplify linear thinking;one-sided approach; alternative solution generation; compromise solution; systems approach; toanticipate something; priority approach; linear thinking; allure; the interrelationships amongorganizational elements

Exercise 4. Give the English equivalents from the text to the following:

; () ; ; ; ; , ; ; ; ; ; , ; ; ; ; ; ; ;

Exercise 5. Bear in mind the information below then give English/Russian equivalents

using the dictionary if necessary:To evaluate

, 2. , ; , ..: to evaluate the full

significance - ; to evaluate a new antibiotic - ; to evaluate arguments - ;

3. . ; : to evaluate the altitude of a plane - ;

to evaluate performance, project, requirements, risk, stock, information, data, invention, policy,proposal, operations, feasibility

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; ; ; ; ; ; ; ;

) 1. Its impossible to evaluate these results without knowing more about the research methodsemployed. 2. Banks have been advised to pay more attention to personal circumstances whenevaluating loans to private customers. 3. We shall need to evaluate how the new material standsup to wear and tear. 4. Our research attempts to evaluate the effectiveness of the differentchemicals. 5. We need to evaluate how well the policy is working. 6.chool has only been openfor six months, so its hard to evaluate its success.

TYPES OF MANAGERIAL DECISIONS

Whether a manager takes a linear thinking or systems thinking approach to business

problems, there are two major kinds of problems confronted, and the nature of the problems willinfluence the methods applied to reach satisfactory solutions. These are programmed and non-programmed decisions.

Programmed decisions

Programmed decisions characterize those problems that are well understood, highlystructured, routine, and, repetitive and that lend themselves to systematic procedures and rules.Each time one of these decisions is made similar to every other time. The checking out of abook from library or the processing of a hospital insurance claim are examples of programmeddecisions because they are repetitive and routine. Much effort may have gone into the solving ofthese problems the first time they were encountered in the enterprise. As they were solved for

the fist time, there was probably thought given to how the solutions could be routinized. Whena process is produced that will give an acceptable result each time, management has created analgorithm, a mathematical concept applied to management. An algorithm is "repetitivecalculation", in this instance a repetitive process by which an acceptable solution will always befound. Once implemented, such solution-generating processes become SOP - standardoperating procedures.

Programmed decisions, since they are well structured and understood, may lendthemselves to linear thinking, but this will only be so if the programmed decisions are simpleproblems. A programmed decision, however routine and well understood, may be quitecomplex and require a true systems approach when first encountered. This implies that asystems approach will be necessary the first time the problem is solved, but the result of this

problem-solving approach will be an algorithmic solution that can then be applied every timethe same problem recurs.

Non-programmed decisions

Non-programmed decisions are those problems that are not well understood, not highlystructured, tend to be unique, and do not lend themselves to routine or systematic procedures.The key to understanding these decisions is to remember that they happen infrequently, andbecause they happen so rarely, there is little precedent for decision-making. A merger is an

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example of the kind of event that requires management decision-making and happens so rarelythat neither standardized nor routine decisions are available. Management will make use of datafrom past problems and performance, examining historical analogy - how others in the pasthave solved similar problems. Managers look for principals and solutions that may apply in thecurrent situation but must be ever mindful that past solutions and problem-solving

methodologies may not apply now.Managers, particularly at higher organizational levels, make many non-programmeddecisions during the course of defining the goals of the enterprise and running its dailyactivities. Because non-programmed decisions are so important to business and so common tothe managerial position, a manager's effectiveness and future promise to the business will oftenbe judged according to the quality of his or her decision-making.

One of the most popular ways of developing analytic abilities and managerial decision-making is the case study.

The case study is a written history of a business problem and the manner in whichmanagement solved it. A good case study does not pretend to teach a unique solution, althoughit may be valuable to see how that solution worked in a specific solution. The greatest benefit tobe derived from a case study is to learn how a decision was made and a solution selected. Thedecision-making methodology can then be applied to other problems.


A programmed decision can be applied when the problem is routine, well structuredand understood, and repetitive. A non-programmed decision can best be used when theproblem is not well structured or understood and is neither routine nor repetitive.

Notes:merger- act of joining together especially two commercial companies: the merger between twobreweries; The two companies are considering merger as a possibility.

KEY TERMS:

Programmed decisions those problems that are well understood, highly structured, routine, andrepetitive and that lend themselves to systematic procedures and rules.Non-programmed decisions those problems that are not well understood, not highlystructured, tend to be unique, and do not lend themselves to routine or systematic procedures.

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Terms for study:

administrative decision - insurance claim - algorithm - ( )

anticipatory mode - brainstorming - " ", ; case study - ; ; certainty - , performance standards - pilot testing - managerial - ; managerial position - () management problem - to alleviate, to simplify a problem - , to anticipate, to foresee a problem - to avoid problems - to bring up a problem - to cause a problem - to cope with problems - to solve, to resolve problem - to deal with a problem, to tackle a problem - , to encounter a problem, to run into a problem - , to experience, to face a problem - , to finalize a problem - to overcome a problem - to outline a problem - to prevent a problem - to get a problem off the ground - programmed decision - reactive mode - risk - , , strategic decision - systems thinking - systems approach - uncertainty - 1. 2. , standard operating procedures - manager's effectiveness -

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Exercise 1. Give Russian equivalents for the word combinations to go with the word

process :to accelerate, to adopt, to apply, to arrest, to check, to complete, to control, to develop, to

employ, to encourage, to evaluate, to examine, to facilitate, to favor, to follow, to further, togo through, to halt, to hasten, to help, to hold back, to improve, to initiate, to instigate, to

interrupt, to introduce, to invent, to investigate, to keep track of, to master, to modify, tomonitor, to observe, to obstruct, to plan, to prevent, to regulate, to reverse, to set process inmotion, to slow down, to speed up, to start, to stop, to streamline, to study, to supervise, tosuspend, to take part in, to test, to trigger, to try (out), to useprocess

process came to an end/halt, continues, gathered momentum, intensified, spread, workedactive , awkward, basic, beneficial complicated, cumbersome, cumulative, dangerous, daunting,

decision-making, destructive, distinct, divisive, doubtful, effective, elaborate, elaborate,essential, frustrating, gradual, harmful, inevitable, inexorable, ingenious, insidious, irritating,laborious, lengthy, long-drawn-out, natural, nerve-racking, noticeable, original, painful,perceptible, rapid, reliable, risky, salutary, slow, steady, step-by-step, swift, tiresome, tricky,valuable, wasteful, wholeprocess

Exercise 2. Give English equivalents:

; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; , ; , ;

Exercise 3. Read the notes, give the Russian equivalent to each explanation. Translate

what follows choosing the right Russian equivalent:

Process -- a series of actions or tasks performed in order to do, make or achieve sth: to begin the

difficult/gradual process of reforming the educational system;- a series of changes, especially ones that happen naturally: the digestive processes, a normal

part of the ageing process;- a method of doing or making sth, especially one used in industry: the processes used in

cement production;- (Law) a legal action, case suit, trial;

Translate the following:1. Coal was formed out of dead forests by a slow process of chemical change. 2. Teaching himto read was a slow process. 3. The identity of the dead man was established by a process ofelimination. 4. The company is in the process of moving to new offices( to be in the processof doing sth/ be in process). 5 New guidelines are in process. 6. Teaching him to walk again

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was a long and painful process, luckily he began the slow process of recovery. 7. Were still inthe process of selling our house. 8. We have now a real opportunity to advance the peaceprocess. 9. The company has developed a new fruit preservation process. 10. What process doyou use to dry the paint so quickly? 11. Cotton goes through several processes when beingmade into cloth. 12 .Going to court to obtain compensation can be a long and painful process.

Exercise 4. Match the two columns of word combinations with the wordprocess. Make up

sentences them:

to be in the process 1. to develop a process 2. to evaluate a process 3. to implement a process 4. to license a process 5. to master a process 6. to operate a process 7. to patent a process 8. to practice a process 9. to work out a process 10.

Exercise 5. Give Russian/English equivalents of the following as quick as possible:

" ", to develop analytic abilitiessystematic procedures and rules, , to select a solutionthe key to understanding, at higher organizational levels, , to apply a decision-making methodologyto define a goal, , standard operating proceduresthe case study,

Exercise 6. Translate the following text in English using the word combinations below:

ordinary, common shares - e to impose , to lay a tax - acquisition of shares -

consolidation - pure assets -

horizontal merger - vertical-backwards merger -

vertical-forward - conglomerate -

amendment - expedience -

subversion of the competition - institution of antitrust case(proceedings) -

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C - , , . , .

: - ; - , ; - ; - . , . 1950 . * 1914 . , . .

* 1914 / Clayton Act of 1914 - ShermanAntitrust Act , . , , , , , . . , injunction , NewDemocracy New Liberty.

Exercise 7. On the base of the text below and the text taken from exercise 6 make up a

consistent presentation on the topic Merger and its place in the world economy:

Merger - a combination of two or more firms into a single new firm. This takes over allthe assets and liabilities of the merging firms; shares in the new firm are divided between theshareholders of the original firms on an agreed basis. Merger procedures in the UK are subjectto* the City Code on Takeovers and Mergers. A merger may allow economies of scale or scopebetween the firms which should lead to gains in efficiency. It may however also reducecompetition, so that mergers in the UK may be referred to the *Monopolies and MergerCommission (MMC).

A US Act of 1914 extending federal antitrust law forbade price discrimination, tyingarrangements and exclusive dealing, and the acquisition of another corporations stock wherethis led to monopoly or decreased competition. The Act allowed triple damages to those injuredby breaches of antitrust law. Labor unions and agricultural associations were exempted fromantitrust actions.

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* the City Code on Takeovers and Mergers - *Monopolies and Merger Commission ( MMC ) - , , , . 1948

(Monopolies and Restrictive Practices Commission).

Exercise 8. Expand on the following topic keeping close to the text How do programmed

and non-programmed decisions differ?

Exercise 9. Fill in the gaps and give the Russian translation of the following:

(Programmed decisions, non-programmed decisions) are those problems that are well understood, highly structured, routine, and repetitive

and that lend themselves to systematic procedures and rules., however, are those problems that are not well understood and not highly structured,

tend to be unique, and do not lend themselves to routine or systematic procedures.

3. LEVELS OF DECISION-MAKING IN AN ORAGANIZATION

Just as there are different kinds of business decision-making, there are different levels ofdecision-making within a business. These are the strategic, administrative, and operationallevels of decision- making in an organization.

Strategic decisions are those that determine the goals of the entire organization , itspurpose and direction. It should be noted that the strategic decision-making function is largelythe task of top management. Top Management has the "big picture" of all elements of acomplex enterprise, and it must be able to integrate all aspects of a business into a coherentwhole. The decisions made at this level also determine how the business will relate to externalenvironments. Because strategic policies affect the entire business. These policies and goals arenot very specific because they must be applied to all levels and departments in a company.Strategic decisions are usually non-programmed in nature. The general decision to produce abreakfast cereal or to enter a new market are examples of strategic decisions.

Administrative decisions are those made on a lower than the previously discussedstrategic decisions. They are usually made by mid-level management, such a divisional ordepartment managers. These decisions concern the development of tactics to accomplish thestrategic goals defined by top management. Although top management's strategic decisions arenon-specific because they are applied to all departments within the organization, administrativedecisions express corporate goals in a specific departmental manner. Administrative decisionsare therefore more specific and concrete than strategic decisions and more action oriented. Thedecision to produce a specific kind of cereal, in this case a fruit-and-fiber breakfast cereal, is anexample of this kind of administrative decision.

Operational decisions are made on the lowest or supervisory level within the companyand concern the course of daily operations. These decisions determine the manner in whichoperations are conducted-operations designed to accomplish the tactical decisions made mid-management. These decisions concern the most effective and efficient way to accomplish the

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goals stated on the administrative level. Setting a production schedule and determining theappropriate level of raw materials inventory are examples of operational decisions. In ourcontinuing example of the breakfast cereal, an operational decision would be to produce eachweek 10,000 boxes holding 12 ounces.

Terms for study:

manager - 1. ; ; ; ; ,

administrative manager - , ; advertising manager - assistant manager - ;bank manager - branch manager - 1. ; ; 2. business manager - chief manager - clearinghouse manager - commercial manager - commissioning manager - departmental manager - deputy manager - distribution manager - ; district manager - , division, divisional manager - economic manager - employment manager - engineering manager - 1. 2. exhibition manager - export, export sales manager - factory manager - factory services manager - farm manager - field sales - functional manager - general manager - 1. 2. industrial traffic manager - inventory manager - - lead manager - marketing manager - middle manager - office manager - 1. 2. operating manager - personnel manager -

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plant manager - product development manager - production control manager - product line manager -

project manager - promotion, publicity manager (Am.) - sales manager - 1. 2. staff, labour manager - statistics manager - top manager - , traffic manager - warehouse manager - works manager - 1. 2. manageress - managing director - -board of directors -

Exercise 1. Read the following information about people in management and find

equivalents to the italicized words:

a person who manages sth: manager, director; our personnel manager, our director of finance;a person who controls a whole business or company: managing director, chief executive (Am

Englishpresident);a woman who manages a shop or a restaurant: manageress;a person whose work is in administration: administrator; We have too many administrators and

not enough doctors.one of a group of people who are responsible for controlling the policy and major decisions of a

company: (company) director; Shes on the board (=group) of directors.a person who has an important position in an organization: executive; one of their sales

executivesthe most important person in an organization or part of an organization: head; The head of the

Bank of England is the Governor; my head of department;a person whose job is to give orders to other people at work: (informal) boss;a person who is the head of sth or in charge of sth or in charge of sth: leader; Shes proved to be

excellent leader of this organization;the second most important person in an organization or a part of an organization: deputy; the

deputy director/governor;a person who helps another person: assistant; the assistant manager;to make sure that work is done properly, or that people are doing their work properly: supervise

sb/sth, oversee sb/sth; noun (Uncountable):supervision; Jim supervises the work of trainees.

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a person who supervises sb/sth:supervisor; Jim works as a supervisor in a factory.a person whose job it is to keep a record of all the money that a business spends and receives:

accountant;

Exercise 2. Give English equivalents to the following Russian words and expressions: , , , , , , , , , , ,

Exercise 3. Give Russian equivalents to go with the wordgoal:

to accomplish, to achieve, to adopt, to agree on, to aim at, to choose, to drop, to give up, tohave, to pursue, to reach, to seek, to set oneself, to strive for, to succeed in, to workfor/towardsgoal

ambitious, appropriate, broad, chief, common, definite, difficult, direct, distant, final, fresh,general, immediate, intermediate, joint, long/short-term, main, real, (un)realistic, specific,true, ultimate, (un)attainablegoal

Exercise 4. Match the two columns of the corresponding word combinations to go with

the word manager (= ):

marketing research manager 1) product manager 2) marketing manager 3) ( )advertising manager 4) sales manager 5) production manager 6) finance manager 7)

Exercise 5. Translate the sentences using the following:

- to determine, to define ( )1. We should first try to determine how much it is going to cost. 2. An inquiry was set up todetermine the cause of the accident. 3. Age and experience will be determining factors in ourchoice of candidate. 4. Upbringing plays an important in determining a persons character. 5. Adate of the meeting has yet to be determined. 6. The court determined the defendant should paythe legal costs. 7. The term mental illness is difficult to define. 8. Life imprisonment isdefined as 60 years under state law. 9. We need to define the task ahead very clearly. 10. Thedifficulty of a problem was defined in terms of how long it took to complete. 11. .12. . 13. . 14. .

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Exercise 6. Study the use of different lexis to go with the meaning = an organization that

makes or sells goods or services in order to get money then translate what follows:

1. company - to manage/run a company; to start/set up a company; a company goesbankrupt/bust/out of business

2. firm - a company, especially a small one that makes goods or provides services such asgiving legal or financial advice;business - a shop or company etc that sells goods or provides services, especially one that

employs a small number of people or even only one person: to set up/start a business; tomanage/run a business;

4. corporation - a large company that employs a large number of people;5. multinational - a large company that has offices or factories in many different countries;6. conglomerate - a very large business organization that consists of several different companieswhich have joined together;7. partnership - a company that belongs to two or more people, especially a small company thatprovides professional services;


1. My father works for an insurance company and the companys profits have risen in the lasttwo years. 2. Shes the boss of a small company which makes greetings cards. 3. The companywas set up just after the end of the war. 4. When we first started I had run the company on myown. 5. A lot of well-known UK companies have gone bankrupt in recent years. 6. Ford UKsparent company in America is planning big *cut-backs in production. 7. Before he becamesenator he worked for a law firm in Los Angeles. 8. The firm employs about 10 full-time staffand 4 part-time workers. 9. He left Chrysler and set up his own management consultancy firm.10. A lot of small businesses have been badly hit by the recession. 11. When we first set up ourprinting business there were only two of us - now its grown and there are 20 people workinghere. 12. IBM is one of the biggest corporations in the US. 13. Kodak started out as a smallbusiness in Rochester, New York, and expanded into a thriving multinational corporation. 14. Ifyou work for a multinational, it is quite likely that you will be sent to work abroad. 15. Themajor cigarette producers are massive multinationals with a large and profitable market toprotect. 16. It is the big multinational companies such as BP, ESSO and Shell which dominatethe market. 17. A vast American conglomerate has announced plans to buy the site at a cost ofwell over a billion dollars. 18. In the mid-1980s the big financial conglomerates *muscled intothe market. 19. My first job after I qualified was a small accountancy partnership.

*cut-back (finance) - a reduction in the amount of money, staff other resources available for aproject or an organization: Local governments have been ordered to make further financial cut-backs. A cut-back in staff has slowed down production.*to muscle in (phrasal verb) - to involve oneself in sth when one has no right to do so, for onesown advantage;

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Exercise 7. Translate the following paying attention to the Russian equivalents, use a

dictionary if necessary:

1. The group of executives working below the top managers are generally called middlemanagers.2. Jane is an important person in our company. She is a member of the Boards of Directors.

3. Alvin, a recent university graduate, has been with the firm for a year. He is at present ajunior executive and is being trained for a managerial position.Their work-force is expending rapidly. They now have over 5,000 employees.5. At least 50% of our staff have been with the company over ten years.6. Senior executives or Middle Managers in an organization generally have more *fringebenefits than lower-level managers.7. We are a small group in the Research and Development Department. Fortunately, I get onwell with all my colleagues.Our telephone operators work under the direction of a supervisor.I work under Mr. Brown. Hes my superior.Deborah and Dennis work under my authority. I am their boss and they are my subordinates.I am responsible for staff training and development.A managing director is a person of high rank in an organization, usually next in importance to

the Chairman.

*fringe benefits - extra benefit, given especially to an employee in addition to salary or wages:The fringe benefits of the job include a car and free health insurance.

4. STYLES OF DECISION-MAKING

Just as there are different kinds of decisions, there are different kinds of decision-makingstyles. One style may be more acceptable than others, and decision-makers who show thedesired style will be rewarded and promoted to even higher business positions. The task of thenew manager is to determine the most effective decision-making style. This can be done byobserving the styles of established executives in the specific organization or company. Amanager whose style of decision-making is different from that of the company will oftenencounter great difficulty in having his or her managerial decisions accepted.

The "smoother" or problem avoider (PA) seeks to preserve the status quo and acts tokeep from making changes. This manager functions to maintain current conditions, andalthough this may not be the stated goal of managerial decisions and actions, it will be thepractical result. When confronted with difficulty, the PA will either reconcile the conflicts in thereported data with a rational that seeks to "smooth over" any conflict or ignore it completely.Thus the PA is often called a smoother. This manager may not recognize problems in thebusiness environment and will be able to come up with rationales for supposed problems thatdemonstrate that they are not really problems at all. He or she may appear blind to businessdifficulties and will be the person who most resists business changes, even when the changesare obviously for the best interest of the company.

The PA, in the desire to preserve the status quo and avoid making changes, will givegreat effort and value to intensive preplanning studies. These studies will present and justify

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organizational efforts designed to minimize change. Problem avoiders are good people to keepan organization on a calm and even course, and this may be the most effective decision-makingstyle in industrial environments in which there is little need for change. However, if thebusiness is conducted in a dynamic, changing environment, a more active approach will almostalways be more effective for problem-solving. Such a manager will be known as a problem

solver. The problem solver is the most common managerial style. Most managers expect to beconfronted with problems and to solve those problems in the normal course of doing business.There is no hesitation to make changes when there is an indication that such changes are goodand necessary. There is no prior commitment to make changes, however, until it has beendetermined by means of research and scientific analysis of the data that changes are necessary.It is recognized that changes without necessity is gratuitous, a waste of organizational resources.Such gratuitous changes serve to foster an illusion of progress while merely confusingeveryone.

The problem solver accepts that modern business operates under conditions of risk anduncertainty. This means that business is often in a very turbulent environment with theimperative to adapt to changing circumstances. Businesses that fail to adapt suffer decline,cease to be productive and profitable, and may eventually die. The problem solver accepts therisk and makes decisions that help deal with the uncertainty. These managers deal withproblems as they arise and do not seek to preserve the status quo unless the current situation isbetter that any possible change.

The only criticism we may advance of the problem solver is that this kind of manager ispreoccupied with the current problems. This person is generally always in a primarily reactivemode, reacting to problems as they arise. Often these problems could be better dealt with ifthey had been anticipated - when they were smaller and more efficiently managed. The problemsolver rarely anticipates problems but is very effective in dealing with them once they havebecome known.

The problem seeker, as the name implies, actively seeks out problems and attempts todeal with them before they emerge as major difficulties for a business. This manager isenthusiastically involved with future planning and creation of contingencies. The problemseeker not only recognizes the need for change but also believes that the best way to deal withchange is to anticipate it, not merely react to current needs. This kind of managerial decision-maker use of data analysis, not merely to understand the present, but also to project the future.The problem seeker is to corporate champion of research and will devote many hours ofdedicated work trying to understand the implications of research data for the company's future.

Although this preoccupation with the future of the company may seem to lead to aneglect of current needs and situations, the problem seeker has a vital role in planning the futureof the company. There are two major points in favor of the decision-making style of theproblem seeker:It is often easier and more efficient to deal with small problems before they become big ones;It is not enough for a company to change ; it must change in the right direction to survive in the

rapidly changing contemporary environments of business. The problem seeker is a majorcorporate resource in planning for the future, but it is obvious that a company must be able tochange both in response to current problems and in response to anticipated future problems.

One of the major distinguishing features of these three types of decision-makers is theability to deal with conditions of risk and uncertainty. The problem avoider seeks to minimizerisk and eliminate uncertainty by promoting the status quo, a totally known condition. The

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problem solver recognizes the need to risk change and function in an environment onuncertainty in which there are unknown conditions and the possibility of anticipated results. Theproblem seeker accepts the greatest amount of risk and uncertainty in actively seeking to dealwith problems before they have emerged and become known. We now turn to a generaldescription of the difference levels and types of risk and uncertainty to better understand the

conditions under which managerial decisions are made.


Decision-making within the contemporary business organization involves all theproblem-solving styles. The problem avoider, problem solver, and problem seeker each havea role to play within the same company. Although one particular style may be more effectivethan the others in a specific situation, all organizations are confronted with a complex variety ofchallenges that will require a variety of problem-solving styles.

Terms for study:

decision - 1. ; ; 2. () 3. . ; decision criterion - ; decision-flow analysis - decision function - decision-maker - , decision-making center - , decision making procedure, process - decision-making stage - decision making under certainty - decision making under uncertainty - decision making under risk - decision error, wrong decision - administrative decision - arbitration, arbitrators decision - business decision - committee decision - experts decision - compulsory decision - draft decision - early decision - management, managerial decision - motivated decision - operative decision - production decision - sequential decision - unanimous decision - unilateral decision - decision under risk - , to affirm, to confirm a decision -

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to appeal against a decision - to arrive at decision - to await a decision - to delay a decision - to enforce a decision -

to carry out, to execute, to implement, to fulfill, to perform a decision - to hold a decision - to hold over a decision - to kick against a decision - to leave to somebodys decision - - to make a decision, to pass a decision - to rescind a decision - to submit for decision - to submit to a decision, to obey a decision - to take a decision - to wait for a decision - commitment - syn. obligation;to carry out, to fulfill, to meet commitments - to violate commitments - treaty commitments - to enter into a commitment - to fail to meet ones commitments - to incur a commitment - to make no commitments - to shrink a commitment, to shrink away from a commitment - to undertake a commitment -

Exercise 1. Give English/Russian equivalents to the following words and word

combinations:

a) -; ; ; ; ; ; ; ; ; - ; ; ; ; ; ; ; b) to confront with a complex variety of challenges; major distinguishing features; the problemseeker; creation of contingencies; to preserve the status quo; to be enthusiastically involved withfuture planning; there is no prior commitment; there are two major points in favor of; tounderstand the implications of research data; preoccupation; to be preoccupied with the currentproblems; to anticipate problems; justify organizational efforts

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Exercise 2. Give Russian equivalent to go with the word decision:

a) to abide by, to adhere to, to affect, to alter, to announce, to appeal against, to approve of, toarrive at, to be faced with, to cancel, to challenge, to change, to come to, to confirm, to contest,to defer, to endorse, to enforce, to face, to form, to give, to go ahead with, to go back on, tohesitate over, to ignore, to implement, to justify, to lie behind, to make, to overrule, to overturn,

to postpone, to prompt, to put off, to question, to ratify, to reach, to reconsider, to rescind, toreverse, to revoke, to scrap, to take, to uphold, to vindicate decisiondecision depends on ,is binding/final, opens the way for , remains in force, rests with

somebody, stands, takes effectc) arbitrary, basic, binding, clear-cut, conscious, correct, critical, crucial, daring, definite,delicate, difficult, emotional, (un)fair, (un)favorable, final, foolhardy, forceful, hard, harsh,hasty, immediate, irreversible, irrevocable, joint, key, landmark, lightning, major, momentous,(un)popular, previous, prompt, proper, quick, rash, recent, sensible, snap, split, straightforward,swift, ultimate, unlawful, unpalatable, vital, wise, wrong decision

Exercise 3. Give Russian/English equivalents to go with the word commitment:

a) to abandon, to acknowledge, to assume, to avoid, to deny, to enter into, to express, to feel, tofulfill, to get out of, to go back on, to have, to honor, to keep to, to make, to meet, to recognize,to take on commitmentb) ; ; ; ; ; ;

Exercise 4. The phrases above are examples of collocation. This refers to words which are

frequently grouped together. Complete the following sentences with appropriate verbs

and then translate them:

(to make/take a decision, to keep/bear in mind, , to take into account, to come to an agreement,

to give/express an opinion; to make/to put forward/come up with an agreement; to run risk; to

put pressure; to make recommendations; to reach/draw from smth; to give a great deal ofthought; to take action)

Although our company wants to expand rapidly, we must in mind that we have limited cashto do.

It is important to into account all options before a decision.The Financial Director has the conclusion that we must reduce costs by 10%.Finally, the Chairman his opinion about the matter. After we had listened to him, we were

able to an agreement.Abby an interesting suggestion at the meeting.If we dont come up with new products, we the risk of falling behind our competitors.Our chairman is too old for the job. Some of the directors have pressure on him to resign.The writer has some recommendations in his report.What conclusion have you from the facts given in his letter?I have a great deal of thought to out financial problemsAfter five hours negotiation, we finally agreement.

Exercise 5. Supply as more as possible objects for the following verbs and word

combinations:

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to encounter, to launch, to determine, to observe, to accept, to preserve, to keep from, tomaintain, to justify, to state, to confront with, to reconcile, to recognize, to come up with, toappear blind to, to demonstrate, to resist, to avoid, there is no need for, to conduct, to be knownas, there is an indication for, to confuse, to be affected by, to operate under, to adapt to, to bepreoccupied with, to anticipate, to deal with, to seek out, to create, to understand, to minimize

Exercise 6. Supply nouns to go with the following attributes giving as many word

combinations as possible and translate them into Russian :

acceptable, managerial, effective, flexible, multilateral, stable, adjustable, necessary, pressing,various, behavioral, sequential, compulsory, operative, early, unilateral, motivated, anticipated,unanimous, changing, current, pressing, modern, costly, intrinsic, sufficient, common,irreversible, irrevocable, binding, administrative, vital, research, future, original, troublesome

Exercise 7. Study idiomatic uses of the word spotand translate what follows:

on the spot = immediately or at the place of actionin the spot = in a difficult situationin the spotlight = at the center of public attentionspot-on = exactly rightspot-check = quick, random examinationto put someone on the spot = ask someone a difficult question or put someone in a difficult

situationspot-cash = cash on deliveryhigh spot = outstanding momentweak spot = aspect of a character, situation or organization that can be criticizedto knock spots off = to be much better than

We are in a spot at the moment because one of our biggest customers has gone bankrupt. Heowed us a lot of money.

Recently, The Distillers has been in the spotlight. Two companies have been fighting to take itover, and everyone has been talking about the takeover battle.

The forecasts of our Marketing Department have been spot on. I dont know how they manageto be so accurate.

our terms for this consignment of rubber are spot cash.I dont want to wait for an answer. Cant you give me a decision on the spot.- Can we give you twenty machines for immediate delivery? - Now, you are really putting me

on the spot. I dont know how many we have in stock.The income tax officials often do a spot check on taxpayers to make sure they are giving

accurate information.The high spot of our year is our staff party. Even the Chairman lets his hair down.Our distribution system doesnt cover certain areas of the country. Its the weak spot in our

business.In my opinion, our computer products knock spots off those of our competitors.

Exercise 8. Lets explore a wide aspect of the idea of the word decision which expresses a

different idea, make up sentences with each meaning under consideration. Each line starts

with the keyword:

judgment

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willresolutionchoiceintentiondecree

legal trial

Exercise9. Study the information below then complete the following passage with correctforms of the words in the box:

(to arise -verb; to rise - verb; to raise - verb; rise - noun)

to arise (arose, arisen) - to come into being: A serious problem has arisen which will take timeto solve;to rise (rose, risen) - intransitive verb, =to stand up: The whole audience rose to cheer thesinger;to raise (raised, raised) - transitive verb, = to lift up: If youd like to ask a question, raise yourhand;

A serious problem has (1) in my company. Because the cost of living (2) by 10%last year, management decided to (3) the salaries of all the staff. For this reason, they gaveeveryone a (4) of $100 a month.

However, later on, they had to pay for this by (5) the prices of all our products by10%. Such a large (6) in prices made our products uncompetitive. So now, management istalking of lowering our salaries again!

Exercise 10. Make up the sentences of your own with the word combinations below:

to raise a claim - ; to raise objections - ; to raise a point (aquestion) - ; to raise the price - ; raised check - ; to raise a loan - ; to raise money on a thing - -;to raise difficulties - ; to raise the blockade - ; to raisethe quarantine - ; to raise the taxes - ; to raise the wind -, ( )

Exercise 11. Expand on various styles of the decision-making process keeping to the plan:

1. The "smoother" or problem avoider2. The problem solverThe problem seeker

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III. DECISION-MAKING PROCESS UNDER DIFFERENT

CONDITIONS

Conditions of certainty

Under conditions of certainty all decision variables and the results of each potentialcourse of action or solution are known in advance. A manager can approach the decision-making secure in the knowledge that there will be no unanticipated results. In this sense,decisions made under conditions of certainty are programmed decisions. An example of theseconditions is the relationship between the manufacturing of television sets and inventory levelparts. There is no uncertainty - the higher the level of manufacturing, the lower the level ofinventory of parts used in the manufacturing. A decision to increase production leads directly toa reduction in inventory level. A manager making the decision to increase production knows theimpact on inventory exactly. Since all the results are known before making a decision, manymanagers prefer to make decisions under conditions of certainty. This is possible only in themost simple situations. There is rarely knowledge of all possible results, and managementusually encounters a degree of risk.

Conditions of risk

Riskis defined as a condition in which the results of any decision or course of action arenot definitely known bur will probably fall within a known range. One describes risk in terms ofprobability; that is, the "probability of a specific outcome is a fraction between o and 1, and ifthe probability of specific outcome is 1, it is completely known; if the probability is o, it iscompletely unknown." Since under conditions of risk the probability is neither completelyknown nor completely unknown, it is described as a fraction between the two extremes.

An example of making decisions under conditions of risks would be to introduce aredesigned automobile model into the market. There may be a . 20 probability of sales of 20,000cars the first year, a .50 probability of 30,000 of 25,000 sales the first year. Since there are past

sales data on how last year's design for this car did, there is a basis for estimating the probabilityof success for the new design. Note, however, two aspects for this description: (1) Although theactual results of the decision to introduce a new car model are known, the general limits ofpossible probabilities and results are known, and (2) all the probabilities add up to 1. When theprobabilities are known, even though the actual results are not, it is possible to use varioustechniques to estimate the most favorable decision outcome.

The example supposed that we had past data and could estimate the probabilities ofspecific outcomes, but suppose the new car was something never seen before, a totally newconcept for which there were no previous sales data. In this case it would not even be possibleto estimate probabilities. In situations in which there is no reliable estimate of probabilities orthe potential decision results are unclear or not known, we have conditions of uncertainty.

Conditions of uncertainty

When a manager cannot predict the outcome of a managerial decision, or if the outcomecan be predicted but the probability of that outcome actually happening cannot be predicted, acondition of uncertainty exists. The inability to predict outcome or assign probability may bedue to the following factors:1. to many variables in the situation; 2. few variables in the situation but not enough knowledgeabout them. The assignment of probability becomes impossible under these conditions. This is

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the situation set forth at the end of the last section in which a totally new car was to beintroduced into the market place . Although the potential results of such a new productintroduction are known (failure or success), the probabilities of each possible result are notknown. There is no past data upon which to make prediction. This is why introductions ofcompletely new products are very uncertain events and vast sums of money are lost each year if

such managerial actions do not succeed. The single failure of a "new product launch" does notautomatically doom a manager's career (although many such failures may destroy a career).Because of the great uncertainty in this management decision-making process, it is understoodthat some new products, however well conceived, designed, and produced, will fail.


Managerial decisions made when the potential results of the decisions and the

probabilities of occurrence of the results are known are made under conditions of certainty.Decisions made when the potential results are not totally known and probabilities must beassigned underconditions of risk. When neither the results nor the probabilities of occurrenceof the results are fully known, management is making decisions under conditions ofuncertainty. As uncertainty increases, so does the possibility of failure.

Terms for study:

condition - 1. ,

2.pl , , ; ; 3. ,

economic conditions - social conditions - - market conditions - ()

to fulfill, to follow, to implement, to meet conditions - to infringe, to violate conditions - to provide favorable conditions for - to make conditions - to comply with, to meet, to satisfy the conditions - to set forth conditions - to stipulate conditions - subject to the following conditions - on condition of reciprocity - under appropriate, certain conditions - () on condition that - ,

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inventory - 1. , ; . -

6. . ; available, on-hand inventories - inventory control - - manpower, personnel inventory - ; merchandise inventory - spare parts inventory - standard inventory stock - ; standard cost inventory plan - - warehouse inventory - to draw up, to make, to take an inventory - , standard inventory - level - consumption level - decision-making level - , expected earning level - full employment level - funding level - income level - inventory level - occupational level - overall level of income - performance level - preferential level - skill level - work level - level of achievements - level of advance - level of business - level of competition - level of efficiency - level of profitability, of profitableness - at executive level - at government level - to increase the price level - to maintain a stable level - to provide high level of service - to reach peak level -

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Exercise 1. Give English/Russian equivalents of the following words and phrases:

a) ; ; ; ; ; ; ; ; ;

; ; ; ; ; ; ; ; ; ; - ; ; ; ; ;

) to approach the decision-making; to take the solutions under certain conditions; relationshipbetween the manufacturing company and the supplying company; to increase production; tolead directly to a reduction; to encounter a degree of risk; to introduce a redesigned model intothe market; to fall within a known range, a fraction between the two extremes; a basis forestimatingprobability of success; actual results of the decision; probabilities of specific outcomes

Exercise 2. Give Russian equivalents to go with the word risk:

to accept, to anticipate, to avoid, to be aware of, to calculate, to constitute, to eliminate, toencounter, to enhance, to entail, to estimate, to face, to foresee, to gauge, to guard against, tojustify, to lessen, to magnify, to minimize, to mitigate, to outweigh, to pose, to realize, toreduce, to represent, to run, to take, to take on risk

riskdiminished, grew up, recededappalling, apparent, attendant, calculated, colossal, dangerous, daunting, faint, full, great, high,

horrifying, huge immediate, imminent, incalculable, infinitesimal, (un)justifiable,(un)justified, low, negligible, obvious, overwhelming, perceptible, remote, serious,significant, slight, substantial, terrible, tremendous risk

its worth the risk

Exercise 3. Learn the idioms with the word riskand then translate what follows:

a)to risk life and limb - to do something very dangerous where you might get hurtto risk your neck - to do something very dangerous that puts ones life, job etc. in dangerat (someones) own risk - with (the person concerned) agreeing to accept any loss, damage etc.

involvedto run/take the risk (of doing something) - to do something that involves which involves a risk

1. These skiers risk life and limb every day for the thrill of speed. 2. Im not going to risk myneck climbing over a twenty-foot wall! 3. He was aware that in selling the companys shareshe was risking his neck. 4. She knew that joining the mountaineering expedition she was riskingher neck. 5. Cars are parked here at your own risk. 6. I took the risk of managing thisdepartment - I suppose I get on well with the staff. 7. She took the risk of buying that jumper foryou in the sales - I hope it fits. 8. He had got into the habit of risking his neck, and his tendencyto run into

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unnecessary peril seemed to her a form of intemperance which should be quietly and steadilyresisted.

Exercise 5. Make up sentences of your own with the word combinations close in the

meaning to the verb to riskand translate them:

to chance, to dare, to endanger, to expose to danger, to gamble, to hazard, to imperil, tojeopardize, to put in jeopardy, to skate on thin ice, to take a chance on , to take the plunge, toventure

Exercise 6. Study the information below as to the adjectives close in the meaning to the

word risky and translate them paying attention to the Russian equivalents:

chancy (informal), dangerous, dicey (informal, chiefly Brit.), dodgy (Brit., Austral., N.Z.informal), fraught with danger, hazardous, perilous, precarious, touch-and-go, tricky, uncertain,unsafe

Exercise 7. Give Russian equivalents:

full employment level, price level, production level, quality level, replenishment level,risk level, salary level, sales level, standard level, tax level, technical level, technological level,top level, level of development, level of living, level, of output, level of rates, business risk,consumers risk, contractors risk, producers risk, seller s risk, reinvestment risk, tenants risk,against all risks, at somebodys risk, to accept a risk, to assess a risk, to assume a risk, to carry arisk, to cover a risk, to insure a risk, to incur a risk, to lessen a risk, to run a risk, to take a risk,additional conditions, business conditions, equal conditions, market conditions, laborsconditions, preliminary conditions, to break conditions, to conform to conditions, to lay downconditions, to set forth conditions, to observe conditions, spare parts inventory, warehouseinventory, level of achievements, level of advance, level of business

Exercise 8. Keeping in mind the information from the Terms of study box translate the

following sentences paying attention to the Russian equivalents to go with the word

condition(s):

1. One of the conditions of the job is that you must be able to drive. 2. We ask for immediatedelivery as one of the conditions of the sales agreement. 3. He had a used car in perfectcondition. 4. You are in no condition to go anywhere. 5. Neglected children are living under themost appalling conditions. 6. The offer is subject to certain conditions. 7. They agreed to lendus the car on condition that we returned it before the weekend. 8. They will give us the moneyon one condition - that we pay it back within six months. 9. They agreed under the conditionthat the matter be dealt with promptly. (especially Am E) 10. Congress can impose strictconditions on the bank. 11. They have agreed to the cease-fire provided their conditions are met.12. A good training program is one of the conditions is one of the conditions for successfulindustry. 13. Work is basic to the human conditions. 14. You must on no condition tell themwhat happened. 15. Be careful with him! Remember hes got a heart condition. (=any of varietyof heart diseases). 16. Her working conditions are terrible: uncomfortable chairs, bad lightingand indescribable food. 17. Due to adverse weather conditions the train service has been sloweddown considerably. 18. What sort of conditions does the planet need to grow in? 19. Bacteriamultiply in warm conditions. 20. One of the conditions in the contract is that we dont build on

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the land. 21. Were not in a position to make/set any conditions - well have to accept thecontracts that are offered to us. 22. Under the conditions of the agreement she is obliged tovacate the house on July 12th. 23. The condition of liberty is eternal vigilance.

Exercise 9. Make up sentences using the following information about the word

combinations to go with the verb to assign:

to assign - 1., , . , (, )

;

to assign somebody a task - - to assign homework - these rooms were assigned to us - two managers were assigned to prepare the exhibition - to assign a limit - ()to assign a sum - to assign a day for trial - to assign a day for (the) hearing - to assign a job - to assign costs -

Exercise 10. Expand on the topics:

Conditions of certainty

2. Conditions of risk3. Conditions of uncertainty

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IV. STEPS IN THE DECISION-MAKING PROCESS

The first step in the managerial decision-making process is an examination of the currentsituation to determine if a problem actually exists. This is accomplished by performing a"situational analysis". Once a statement of goals is determined. Alternatives are considered andevaluated, performance standards set, and pilot testing begun.

Situational analysis

The current situation, determined from an examination of available data, is the "what is".It is not obvious since, as evidence by the discussion concerning the problem avoider, there aremanagers who have a stake in the status quo and will resist change. These managers may notsee the current situation in an unbiased manner, and their perceptions cannot be relied upon todetermine an accurate analysis of "what is." One of the ways in which management canaccomplish an accurate analysis of the current situation is to make use of an externalconsultant. Since outside experts theoretically have no stake in the status quo, they should beable to give an accurate appraisal of the current company situation.

Managers often find it useful, in executing a situational analysis, to focus on the internalorganization conditions, the external factors bear upon business, and the relationships betweenthe two. The internal analysis, called an organizational audit, consists of listing theorganization's strengths and weaknesses. The strengths, what the business does well, arereferred to as its "core competencies." But it is not enough to view an organization internally;the situational analysis also requires an understanding of the external reality, the opportunitiesand threats that are on the horizon.

The external analysis is called the environmental scan. Internal audit and environmentalscan are collectively referred to as the SWOT analysis (Strengths, Weaknesses, Opportunities,and Threats). Both are necessary for the situational analysis because if an external opportunityexists, there must be an organizational ability to take advantage of that opportunity. If thebusiness is internally weak where such an external opportunity requires strength, the businessmust either develop that necessary strength, hire experts who bring the necessary skills andabilities to bear, or be unable to pursue the opportunity.

Even so, this may be difficult. What is a realistic goal for the company? If a future goalstatement is unrealistic, it will give false directions to the company's management. Goals thatare not realistic do not motivate management - they only misguide and cause misallocation oforganizational resources. Some indication of future directions for management may be gainedby examining past company performance and the performance of other companies in theindustry. Both of these are indications of what is possible, and management is free to buildupon past performance in formulating new goals. The new goals will at least be built upon thefoundation of past performance.

If there is a gap between the "what is" (current situation) and the "what should be"(desired future), an organizational need is demonstrated and "what should be" becomes anorganizational goal statement. The next step is to formulate performance standards.

Setting performance standards

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If the end result of situational analysis is an organizational goal statement, how will amanager know if the goal has been accomplished? Only by having performance standards canmanagement know if it has been successful in goal accomplishment. These performancestandards must be realistic, behaviorally based, observable, and quantifiable.

Some managers resist the creation of performance standards precisely because they

create accountability. When performance can be measured against standards, managers can beheld accountable for that performance and the use of organizational resources. Onceperformance standards have been stated, managers can turn to the generation of alternativecourse of action.

It must be recognized that accountability does impact not only the individual managerbut also the entire organization, with potentially devastating results. The publicly heldcorporation that reports its earnings quarterly risks financial disaster should it fail to meet itsprojected return. In a real sense, the stock market holds the entire business organization toaccount for its performance, and the marketplace is littered with the remains of corporations thatlost a significant portion of their equity value (defined here in limited form as the value of theirpublicly held stock) based on a single quarter's financial results. Thus, there is a premiumplaced upon an organization's ability to set performance standards accurately and realistically. Ithas often been observed, in consideration of this "quarterly results" accountability, that it is auniquely American phenomenon; in countries such as Japan, the evaluation of organizationalperformance flows from annual performance or an even longer time frame. In addition, theAmerican emphasis upon a short-term decision-making with concomitant payoffs.Organizational decision-making that involves a longer term commitment of resources andsimilarly longer term payoffs - as with esoteric research and development projects - is oftendiscouraged.

Generation of alternatives

There are always at least two courses of action that management can take - do somethingor do nothing. The alternative of doing nothing may in fact prove to be the best action decisionif the other potential course of action either does not accomplish the organization goal or createssignificant new problems in the process. Under the heading of "doing something," managementmay creatively generate all sorts of alternatives.

Brainstorming is a technique that is often used with a small group of employees togenerate a large number of alternatives in a short period of time. In brainstorming, everyparticipant in a group is confron

basic concepts man good var

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