Professional English in Use Management

Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Frontmatter More information © in this web service Cambridge University Press www.cambridge.org Professional English in Use Management Arthur McKeown Ros Wright Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Copyright information More information © in this web service Cambridge University Press www.cambridge.org CAMBR IDGE UN IVER S I TY PRE S S Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi, Tokyo, Mexico City Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK www.cambridge.org Information on this title: www.cambridge.org/9780521176859 © Cambridge University Press 2011 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2011 Printed in the United Kingdom at the University Press, Cambridge A catalogue record for this publication is available from the British Library ISBN 978-0-521-17685-9 Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Table of Contents More information © in this web service Cambridge University Press www.cambridge.org Professional English in Use Management 3 Contents INTRODUCTION 6 MANAGEMENT IN CONTEXT 1 Perspectives on management 8 A What is managing? B Mintzberg C Management practice 2 Organization structures 10 A Organizational structures B An example of a divisional structure 3 Some management gurus 12 A Henri Fayol (1841–1925) B Frederick Winslow Taylor (1856–1915) C Peter Drucker (1909–2005) 4 Management in different sectors 14 A Private B Public C Not for profi t 5 Resources managers use 16 A Data and information B Time C Money INNOVATION 6 Innovation and creativity 18 A Sources of innovation B Trevor Baylis: a case study on the value of market research in the innovation process 1 7 Screening ideas 20 A Criteria for screening ideas B Trevor Baylis: a case study on the value of market research in the innovation process 2 8 Feasibility studies 22 A The new product development process B Is there a need for a product or service? 9 New product development in practice 24 A Diffusion of innovation and customer adoption of new products B The Maclaren Baby Buggy C Some disasters 10 Intellectual property 26 A Patents B Software piracy C Creative Commons MARKETING 11 Marketing principles 28 A Needs and wants B Development of marketing techniques 12 Marketing planning 30 A The benefi ts of marketing planning B SWOT analysis – Caffè Italia, a UK coffee retail outlet 13 The marketing mix 32 A The four Ps / the seven Ps of the marketing mix B Product life cycle 14 Market research 34 A STEEP analysis B Market research methods 15 Using the Internet for marketing 36 A Market research online B The Long Tail and Freemium 16 Doing business online 38 A The four Ps online B Viral marketing in action C Doing business online OPERATIONS 17 Processes 40 A Managing operations overview B Porter’s value chain C Contingency planning and risk Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Table of Contents More information © in this web service Cambridge University Press www.cambridge.org 4 Professional English in Use Management 28 Managing across cultures 62 A Hofstede B Cross-cultural competence C Cross-cultural differences FINANCE 29 Financial accounting and management accounting 64 A Financial accounting B Management accounting 30 Business valuation and interpretation of accounts 66 A How much is a business worth? A case study in valuation of assets B A shareholder’s perspective 31 Banking and fi nancial services 68 A Zopa and the banks B Applying for a bank loan C Cash management services and payment products 32 Raising fi nance – equity and debt 70 A Venture capital and private equity B A good business plan C Debt or equity fi nancing – Microsoft and Manchester United 33 Mergers and acquisitions 72 A Value creation and synergy B Implementing M&As and post-merger integration 34 Corporate governance 74 A Company ownership and the principal- agency problem B Executive compensation C The board of directors 35 Risk management 76 A Risk management and fi nancial planning B Risk management and investment 36 Managing in diffi cult times 78 A A year that changed the world B Capital markets and the credit crunch 18 Suppliers 42 A Supply chains B Purchasing C Outsourcing 19 Managing quality 44 A Quality B ISO 9001:2008 C EFQM 20 Customer care 46 A Customer relationship management (CRM) B Customer journey mapping 21 Operations online 48 A Just-in-time and online inventory management B Online tendering PEOPLE AND HUMAN RESOURCES 22 Recruitment and selection 50 A The recruitment and selection process B Recruitment of temporary staff C Employment legislation and equal opportunities 23 Motivation and job design 52 A Herzberg B Hackman and Oldham’s job characteristics model 24 Performance appraisal, feedback, training and development 54 A 360-degree feedback B Training options 25 Teams 56 A Tuckman B Belbin C Emotional intelligence 26 Managing knowledge and learning in organizations 58 A Learning organizations B Knowledge management 27 Leadership 60 A Transactional and transformational leaders B Is there a difference between leadership and management? Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Table of Contents More information © in this web service Cambridge University Press www.cambridge.org Professional English in Use Management 5 STRATEGY AND CHANGE 37 Strategic options 80 A Porter – competitive forces B Ansoff – product development versus market development C Case study: the world watch industry 38 Analysis 82 A Gaining competitive advantage through corporate strategy B Mission, tactics and operational planning C Scenario planning 39 Managing change 84 A Planning for change with force fi eld analysis B Overcoming resistance to change 40 Action planning 86 A Implementing strategy – management by objectives B SMART objectives C Resource allocation Appendix: US English terms 88 Answer Key 90 Index 112 Acknowledgements 120 Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Excerpt More information © in this web service Cambridge University Press www.cambridge.org Perspectives on management1 8 Professional English in Use Management Perspectives on management What is managing? Consider several managers and their work. A They all work in different environments, with different stakeholders, that is, all the people who can be affected by their company’s actions, and different key performance indicators to measure success , but they share some general management responsibilities: Identifying customers’ needs Setting targets and putting the necessary resources in place Planning and scheduling their own work and the team they manage Measuring performance and the outcomes achieved Reporting on results. Mintzberg Henry Mintzberg, a Canadian professor of management, has made signifi cant contributions to our understanding of managerial work and the role of the manager. He has identifi ed different roles in a manager’s job and placed them in three categories: Interpersonal roles – a manager is the fi gurehead, providing leadership for the team, the department or the organization and liaising with other stakeholders (both internal and external) Information roles – a manager has to be an effective communicator as information constantly moves in, round and out of the organization Decision roles – a manager has responsibility for spotting opportunities, allocating resources and dealing with confl ict or the day-to-day differences that can arise in any team or organization. Management practice Pavel is speaking to some new recruits at a major fi rm of management consultants, where he is to be their mentor during the fi rst six months: ‘Welcome to Delboi! I have three pieces of advice as you make the move from studying management to the real-world environment in which we work: First: you need to be a team player. Our success here comes from collaborating with colleagues to create feasible solutions when we are interacting with clients. Second: all the solutions that you recommend to our clients have to be practical rather than academic. You have to integrate what you have been learning and constantly challenge your own assumptions. You need to be able to develop creative thinking skills and discuss complex issues in the workplace from a ‘people perspective’. And fi nally: if you do not know something, or if you are uncertain about how we do things here, please ask! ‘We hope you enjoy your time here and we look forward to working with you.’ B C Dick manages a major hotel Harriet is the Chief Executive of a national orchestra. Each season we create an innovative programme that will appeal to a broad range of audiences. We have to set realistic prices for tickets for each concert. We have to cover our costs within an agreed annual budget.My job is to pay attention to every detail of every guest’s stay with us. Tom is the general manager of a brick company. My job is simple: I have to make sure that the company finds customers in various sectors of the construction industry, meets our production targets and makes a profit. 1 Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Excerpt More information © in this web service Cambridge University Press www.cambridge.org Professional English in Use Management 9 1.1 Make ten word combinations from boxes 1 and 2. Look at A and B to help you. 1 allocate cover identify make measure meet pay attention to report on set spot 2 a profi t costs detail needs opportunities performance prices resources results targets 1.2 Match one of Mintzberg’s 10 Managerial Roles from the box with its defi nition below. 1.3 Complete these testimonials from alumni students from an MBA programme using words or expressions from A, B or C. Being able to make a p__________ is really only a tiny aspect of business. I____________ with experts from the various fields of management as well as c___________ with other students taught me to challenge my a___________s of the role of management. Amongst other things, the course gave me a practical insight into soft management skills as well as helping to d__________ my creative t__________ skills. I now have a better idea about m____________ work in general. As a marketing manager, I was able to i________ my previous experience with marketing. In addition, d___________ of the more c__________ i__________s of psychology during the course means that I am now much better at i__________ and meeting the n________s of my customers. I also learnt how to become a much more effective c____________. The part time Executive Programme gave me the chance to put the theory into practice immediately. I am responsible for s___________ and m____________ production targets for a small electronics firm. I learnt about the different management r____________ . This knowledge has made it easier for me to stick to an agreed b__________ for production and to apply key performance i____________ to monitor performance more accurately. Not only did I learn how to become a team p__________ , but I was able to develop my own personal l_________ skills. And by the end I had become a much more effective c_____________. I’m far from becoming a f____________, but I do have much more confidence and have applied for management jobs in several different s____________ of i________. I hope that soon I’ll be able to m__________ a junior member of staff and put it all into practice. 1 2 3 4 Disseminator Disturbance handler Entrepreneur Figurehead Leader Liaiser Monitor Negotiator Resource allocator Spokesperson Performing symbolic duties as a representative of the organization. ............................... Collecting all types of information that are relevant and useful to the organization. ............................... Developing and maintaining business networks. ............................... Spotting opportunities, being innovative and championing change in products, services or business processes. ............................... Dealing with unexpected challenges and crises. ............................... Negotiating with individuals and dealing with other organizations. ................................ Communicating information from inside the organization to outsiders. ............................. Deciding on the most appropriate use of the organization’s resources. ............................... Communicating information from outside the organization to relevant groups inside the organization. ............................... Establishing the organizational culture and motivating the staff. ................................ Look at Mintzberg’s ten managerial roles in 1.2. Which ones do you identify in your current job or in a job you would like to have in the future? Why? Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Excerpt More information © in this web service Cambridge University Press www.cambridge.org 10 Professional English in Use Management Organization structures Organizational structures Management structures iden� fy the diff erent departments in an organiza� on and set out who answers to whom in the chain of command. The tradi� onal types of organiza� onal structure are funcƟ onal or divisional. In a funcƟ onal structure, the organiza� on is divided up into diff erent func� onal areas or departments, such as Marke� ng, Finance and Produc� on. MulƟ -divisional structures also exist, where the organiza� on is divided along geographical or product divisions. This allows the company to grow and develop in new parts of the world and to add new combina� ons of products. A mul� -divisional matrix may also be adopted. This is a combina� on of product and geographical divisions that allows a large company to adapt products for par� cular markets. Matrix structures are especially used in large organiza� ons that have a number of clearly de ned projects. Organiza� ons with one single owner, a sole trader, o� en have no formal structure. Large organiza� ons may have a tall structure, with complex hierarchies and many layers of management, but even a very large organiza� on can have a  at structure, with only a few levels of management. An organizaƟ on chart is a diagram showing rela� onships between diff erent jobs and departments. It may iden� fy the various funcƟ onal departments, the hierarchy, from the CEO and the Board of Management downwards, and the lines of responsibility, to iden� fy repor� ng channels (including individual managers’ spans of control). An example of a divisional structure Head of organization CEO (Chief Executive Officer) Product Division 1 Foodstuffs Accounting and Finance Marketing Human Resources Product Division 2 Domestic cleaning products Board of Management Accounting and Finance Marketing Human Resources A B 2 Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Excerpt More information © in this web service Cambridge University Press www.cambridge.org Professional English in Use Management 11 2.1 Match the terms in the box below with their defi nitions, using information from A and B. chain of command lines of responsibility spans of control Board of Management 1 Handing decision making from the higher levels of an organization to lower ones. 2 The number of people a manager can effectively manage in a particular situation. 3 The specifi cation of individual employees’ responsibilities for particular aspects of work and of their management responsibilities and who they report to in the organization. 4 A committee of members elected by the shareholders to manage and oversee the company. 2.2 Give each sentence below a subheading from the box. fl at functional matrix multi-divisional no formal structure product 1 – departments are separated according to the different aspects of company work, such as producing goods or dealing with the fi nancial matters. 2 – the company is divided into separate units specializing in a particular area of the world or has separate units dealing with particular types of products. 3 – the company uses a mixture of divisional structures, to enable it to be more fl exible and organize its work around specifi c projects. 4 – very small companies run by a single person or group are like this. 5 – in this type of structure responsibility is shared, with fewer managers and with individuals being responsible for their own tasks. 6 – the organization is divided according to a particular product or type of product, each of which has functional teams to take care of staff, fi nance, etc. 2.3 Add words from the box into the correct phrase to make noun phrases. command control management responsibility 1 chain of 2 layer of 3 line of 4 span of Draw an organization structure for an organization with which you are familiar. Cambridge University Press 978-0-521-17685-9 – Professional English in Use Management Arthur Mckeown and Ros Wright Excerpt More information © in this web service Cambridge University Press www.cambridge.org 12 Professional English in Use Management Some management gurus Henri Fayol (1841–1925) Henri Fayol began his career as a mining engineer in Comentry-Fourchamboult-Decazeville, France. He was appointed director of a group of mines in 1872 and became managing director in 1888, before re� ring in 1918. His book General and Industrial Management demonstrates how general management concepts can be applied across a vast range of organiza� ons, regardless of sector: manufacturing, services, public sector, etc. There are mul� ple layers to a manager’s role, including having to develop a workable structure, dealing with staff – roles and responsibili� es, as well as from a mo� va� onal perspec� ve – considering the macro environment – that is the wider economic condi� ons that aff ect an organiza� on, and drawing up a suitable strategic plan. Fayol also iden�  ed the major func� ons of ‘administra� ve management’, such as marke� ng, produc� on and  nance. Frederick Winslow Taylor (1856–1915) Frederick Winslow Taylor, an American engineer, is credited with being the inventor of ‘scien�  c management’ in manufacturing environments. As a manager at the Midvale Steel Works in Philadelphia he used a stopwatch and notebook to iden� fy each step in the various processes on the factory  oor. From these observa� ons he was able to measure the produc� vity rates of workers at every stage in the diff erent tasks he saw performed. He was then able to make recommenda� ons that