5.6. Read and dramatize the dialogue.

Peter Orlov is on the job training with an American corporation where he studies marketing and management techniques. He is talking with Mr. J, a manager of the corporation on the structure of his corporation.

Mr. J.: Although our corporation was a healthy one, 15 years ago it

was fully restructured.

Peter: Why was it done?

Mr. J.: It was not flexible (манёвренный) and fully coordinated.

Marketing managers, for example, did not know how much it

cost to produce a product.

Peter: What was done to make it more flexible?

Mr. J.: Part of the responsibilities were delegated to a lower level. No

longer is the President required to take decisions on every

important issue. Decision-making is shared with many people.

The main thing is to get a result.

Peter: Who is to make decisions inside the corporation?

Mr. J.: Most of the decisions are made by middle management. The

idea is to push decision-making as far down into the organization as possible.

Peter: Doesn’t it create the situation that divisions are self-centered

and uncontrolled?

Mr. J.: Not in the least. We have a special guiding body, the

Board. It has the chairman, the president, vice-presidents

and other top executives. This group provides cross-

communication (перекрестное общение) throughout the

corporation. It works out the overall strategy and makes main

decisions.

Peter: How are investment decisions made in your organizations?

Mr. J.: When a new business is started, many options for new

business development are considered. It is up to an economic

expert to make a risk analysis and present his alternative solution. It just reduces the chance for error.

Peter: Briefly speaking, what are the advantages gained from the

restructuring of the corporation?

Mr. J.: First. Sound (разумный) and fast decision-making. Second.

More top management time for long-range (долгосрочное,

перспективное) planning and less need to be involved in day-

to-day operations. Third. Result-orientation.

Peter: But if it doesn't bring any result?

Mr. J.: If the plan is not put to life, we change our policy to

get the result. In a dynamic organization like ours we

immediately react to any change in the market.

Peter: I can see that your corporation is really mobile and you are

not afraid of changes in the market.

5.7. Answer the questions on the above dialogue:

1. Why was the American corporation restructured?

2. How were decisions made within the corporation?

3. What was the function of the Board?

4. How were investment decisions made inside the corporation?

5. What are the advantages gained from the restructuring

of the corporation?

6. What in your opinion should be done to make Russian

management more flexible and dynamic?

5.8. Read the text and answer the questions below the text. How to Manage Managers

Law on Enterprise enacted (принятый) by the Government help create a relationship when a factory manager and his work collective become partners. Management and employees must be equally interested in the fruits of their labour.

In a result-oriented management the key thing is not to issue instructions but get results. That is why a manager's pay should be linked to the performance of the enterprise where he works. If a factory produces more, a manager's pay should increase. If the production plan is not met, then a manager must be penalized along with the workers he supervises. About 40 or 50 per cent of a manager's monthly pay should depend on the end result of the enterprise. If the result is poor and a manager doesn't get the full pay for a few months running he must leave his office. New people should come instead. It'll be a natural selection of a managerial staff when people with better knowledge and truly original thinking will come to management.

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