Text 2 Management process

It is useful to keep in mind that the management process applies not only to profit-making organizations but also to not-for- profit organizations. A not-for-profit organization (sometimes called a nonprofit organization) is an organization whose main purposes centre on issues other than making profits. Common examples of not-for-profit organizations are government organizations (e.g., the federal government), educational institutions (your college or university), cultural institutions (New York’s Carnegie Hall), charitable institutions (United Way), and many health-care facilities. Of course, environmental factors (such as the state of the economy and actions by competitors) also have a bearing on ultimate goal achievement.

Peter Drucker worked in the 1940s and 1950s as a business adviser to a number of US firms. He is credited with the idea of management by objectives, used by some businesses today.

P. Drucker grouped the operations of management into five categories:

Setting objectives for the organization. Managers decide what the objectives of the business should be. These objectives are then organized into targets.

Organising the work. The work to be done in the organization must be divided into manageable activities and jobs. The jobs must be integrated into the formal organization structure and people must be selected to do the jobs.

Motivating employees and communicating information to enable employees to carry out their tasks.

Job measurement. It is the task of management to establish objectives or yardsticks of performance for every person in the organization. They must also analyse actual performance and compare it with the yardstick that has been set. Finally, they should communicate the findings and explain their significance to others in the business.

Developing people. The manager should bring out the talent in people.

Every manager performs all five functions listed above, no matter how good or bad a manager, P. Drucker suggests. A bad manager performs these functions badly, whereas a good manager performs them well. He also argued that the manager of a business has a basic function, i.e. economic performance. In this respect the business manager is different from the manager of other types of organization. Business managers can only justify their existence and authority by the economic results they produce.

Exercises to Text 2

1) Give the Russian equivalents to the following words and phrases:

To centre on issues of management; educational institutions; business adviser; to divide into manageable activities and jobs; cultural institutions; charitable institutions; to keep in mind; profit-making organisation; to carry out certain tasks; to be credited with the idea of…; management by objectives; to justify someone’s existence; economic performance; to establish objectives of performance; to communicate information to other employees.

2) Put different types of questions to the answers given below:

1 Management applies to both profit- making and non-profit organisations.

2 Peter Drucker is credited with the idea of management by objectives.

3P.Drucker grouped the operations of management into five categories.

4Managers should communicate the findings and explain their significance to others in the business.

5 Business managers can only justify their existence and authority by the economic results they produce.

3) Write in English the definitions to the following terms from Texts 1 and 2:

a) management functions

b) managerial process

c) profit-making organisation

d) non-profit organisation

e) economic performance

f) management by objectives

Date: 2015-12-18; view: 1077