Пойгина Л.Б., Туринова Л.А. - English for Masters. Management Part 1 (1175658), страница 2
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But though often unwritten, surviving as long as possible is a primary objectiveof most organizations. That may be long indeed because organizations have the potential toexist indefinitely. The current record is held by the Roman Catholic Church, which hasoperated continuously for nearly 2000 years. Several governmental organizations in historysurvived hundreds of years. Some businesses, such us the great French wineries, still strongbalance over a century.
However, to remain strong and survive, most organizationsperiodically must select new objectives consistent with the changing needs of the outsideworld. The English monarchy for example, survived as an institution because it eventuallyaccepted a drastic reduction in power in response to social pressure for democracy. Almost allbusinesses periodically offer new products or services to their customers.Effectiveness and Efficiency.
For an organization to succeed in the long term—tosurvive and accomplish its objectives—it must be both effective and efficient. According topopular management writer Peter Drucker, effectiveness results from "doing the right things."Efficiency results from "doing things right." Both are equally important.All the successes described in our opening situations "did the right thing" by choosingan objective that filled some important need in the world. With Federal Express this was fast,reliable package delivery.
Apple provided inexpensive, "friendly" computers. Theseorganizations also "did things right." Federal Express management figured out how to deliverefficiently. McDonalds found ways of making hamburgers that minimize cost and stillmaintain consistency inequality. RCA, in contrast, did the right thing by deciding to buildcomputers because the demand for them clearly was increasing. However, primarily due tothe failure to attract high-quality people and to find the correct market niche, RCA was notefficient enough to compete against IBM.Productivity.
Effectiveness, in the sense of "doing the right thing." is sometimesintangible and difficult to determine, especially if the organization is inefficient. Efficiency,on the other hand. usually can be measured and expressed quantitatively because a monetaryvalue can be assigned to both inputs and outputs. The relative efficiency of an organization isreferred to as productivity. Expressed quantitatively, productivity is units of output divided byunits of input.The more efficient an organization, the higher its productivity. A restaurant thatproduces a hamburger selling for $l at a cost of 60 cents has higher productivity than oneproducing the same-quality $1 burger for 80 cents. Similarly, a hospital with a cost-per-bed of$100 per night is more productive than one providing the same level of care at a cost-per-bedof $125.
A marketing department that increases sales and profits without spending more hasimproved productivity. So has an assembly team that increased its hourly output of productswithout defects. If the output is of poorer quality or there is a high level of defects,productivity is correspondingly lower. Quality is a key element of productivity.Productivity at all levels of the organization is critical to an organization's survival andsuccess in a competitive environment. Potential customers with freedom of choice willnaturally prefer the output of more productive organizations simply because it is a bettervalue. Higher sales give the more productive organization more money to invest in resourcessuch as better plants and technology, which may further increase its productive advantage.
Ifthe gap becomes large, the less productive organization will eventually fail. This is exactly6 what happened to low-priced hamburger chains like Wetson's that were unable to match theextremely high productivity level of McDonald's and Burger King.Until relatively recently American industrial and governmental productivity was thehighest in the world. Because of high industrial productivity, the United States exported farmore than it imported. Governmental productivity made inflation low, and Americans gotmore services for fewer tax dollars than people in most other countries. Now nations such asJapan have increased industrial productivity to the point of gaining a major share of the U.S.market for cars and electronics despite high protective import taxes.
And for the first time inhistory Americans have begun to rebel against increased taxes because they feel that due togovernmental inefficiency they are getting too much. Declining productivity, despiteenormous advances in technology, has become a major problem in America and Europe.The seriousness of this productivity decline is magnified by the increasingly globalnature of competition. Each year advances in technology make the world a smaller place, andpolitical factors make it increasingly harder to shelter local business from foreign competitors.When General Motors loses a customer to Chrysler, the American people as a whole do notsuffer. When the customer buys a Datsun or Toyota, jobs and tax revenues decline. It is not anexaggeration to say that the very survival of American industry, and therefore the nation,depends on making the productivity of our private and public organizations higher.Managers decide what the organization's productivity objectives will be.
Managersdecide what the organization's methods of producing output will be. Managers decide on theincentives the organization will use to motivate workers to improve their productivity. Bystatements of policy and personal example, managers set tone of the organization determinewhether it will be quality and customer-oriented to sloppy and indifferent.Implementation. Perhaps the most crucial point to keep in mind about managing forsuccess is one a student and scholar of management often forgets.
Management decisions,however well grounded in theory and research, are only ideas, but the purpose of managing isgetting work done through other people. A successful decision is one that is actuallyimplemented— converted into action - effectively and efficiently.
There are many potentialpitfalls between making decision and implementing. One measure of success is peer regardfor a company.(from “Management” by M.H. Mescon, M. Albert. F. Khedouri)2. Scanning exerciseScan Text 2 to find the following:a) Common elements of organizational success;b) The definition of productivity;c) The difference between effectiveness and efficiency;d) A key element of productivity;e) The example explaining the notion of efficiency and productivity.3. Vocabulary Study exerciseGlossaryto create successto be criteria for an organization's successto attain the objectivesto make the personal sacrificea specified set of objectives7 survivaleffectivenessefficiencyproductivityunits of outputunits of inputto represent in management positionsprimary objective of most organizationsthe relative efficiency of an organizationcompetitive environmentdeclining productivityglobal nature of competitionstatements of policy and personal exampleimplementationto convert into actionpeer regard for a companya) the following words are used in Text 2 to describe elements of organizational success−−−−−survivaleffectivenessefficiencyproductivityimplementationProvide the explanation of each term in your own words.
Then consult a dictionary to find adefinition of these terms. Supply the necessary examples.b) study the following collocations and give the Russian equivalents for them:to mention the familiar business giants; with the changing needs of the outside world; byreaching out to qualified members of groups; to succeed in the long-term; to be both effectiveand efficient; to motivate workers to improve their productivity; tax revenue; to be groundedin theory and research; to be well-represented in management positions; to be measured andexpressed quantitatively; to rush into the future; to use any available talent; to shelter localbusiness from foreign competitors: to be quality and customer oriented.c) find in the Text 2 equivalents for the following:приносить личные жертвы, сопутствующие расширению предприятия; достигать целей;ориентация на самых квалифицированных членов группы; невысокая себестоимость;постоянно высокое качество; найти свою нишу на рынке; денежная оценка входов ивыходов организации; относительная эффективность организации; ключеваясоставляющая производительности; защита интересов местного бизнеса от внешнейконкуренции; задавать тон в организации на личном примере; быть обоснованной сточки зрения теории; результативность и эффективность.8 d) fill in the terms from the left-hand column into the corresponding definition or phraseon the right.1.
efficiency2. survival3. competitiveenvironment4. success5. quality6. effectiveness7. profitability8. implementation9. productivity10. organizationa) Size and ___________are not always criteria for anorganization's success.b) An___________is successful if it accomplishes itsobjectives.c) ___________results from "doing things right".d) ___________results from "doing the right things".e) ___________as long as possible is a primary objective ofmost organizations.f) ___________is units of output divided by units of input.g) ___________is a key element of productivity.h) Productivity at all levels of the organization is critical toan organization's survival and success in a___________.i) One measure ___________is peer regard for a company.j) A successful decision is ___________that is effectivelyand efficiently converted into action.4.
Discussing exercisea) To succeed - to attain its objectives - an organization must survive by being effectiveand efficient. Provide some examples of specific organizations, showing how they areboth effective and efficient.h) The Text2 states that productivity, the relative efficiency of an organization, isquantitatively defined as units of output divided by units of input. What is a keyelement of productivity? Explain your point of view.i) Can you agree with the view-point that an effective manager, taking differentsituational variables into account, realizes that there is no "right" way? Is there anyoptimal choice which is most appropriate to the situation at hand? Express youropinion.5. Summarizing exercisea) Sum up the main points presented in Text 2. Write the plan of the text in the form ofstatements.b) Develop your plan into a summary.c) Look through your summary.
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