II. Organizing the Enterprise

After goal setting and planning, the second major function of the manager is organization. Organizing is the grouping of resources and activities to accomplish some end result in an efficient and effective manner. Consider the case of an inventor who creates a new product and goes into business to sell it. At first, he will probably do everything himself – purchase raw materials, make the product, advertise it, sell it, and keep his business records up to date. Eventually, as his business grows, he will find that he needs help. To begin with, he might hire a professional sales representative and a part-time bookkeeper. Later he might need to hire full-time sales personnel, other people to assist with production, and an accountant. As he hires each new person, he must decide what that person will do, to whom that person will report, and generally how that person can best take part in the organization’s activities.

III. Leading and Motivating

The leading and motivating functions are concerned with the human resources within the organization. Leading is the process of influencing people to work toward a common goal. Motivating is the process of providing reasons for people to work in the best interests of the organization. Together, leading and motivating are often referred to as directing.

We have already noted the importance of an organization’s human resources. Because of this importance, leading and motivating are critical activities. Obviously, different people do things for different reasons – that is, they have different motivations. Some are primarily interested in earning as much money as they can. Others may be spurred on by opportunities to get ahead in an organization. Part of the manager’s job, then, is to determine what things motivate subordinates and to try to provide those things in a way that encourages effective performance.

IV. Controlling Ongoing Activities

Controlling is the process of evaluating and regulating ongoing activities to ensure that goals are achieved. Managerial control involves both close monitoring of the progress of the organization as it works towards its goals, and the regulating and adjusting required to keep it on course.

The control function includes three steps. The first is setting standards, or specific goals to which performance can be compared. The second step is measuring actual performance and comparing it with the standard. And the third step is taking corrective action as necessary. The results of this third step may affect the setting of standards.

I. COMPREHENSION

A) Answer the following questions:

1. What are the purpose and the mission of a neighborhood restaurant? Of the Academy of Economic Studies of Moldova? What might be reasonable objectives for these organizations?

2. How do a strategy, a tactical plan, and a policy differ? What do they all have in common?

3. What exactly does a manager organize, and for what reason?

4. Why are leadership and motivation necessary in a business where people are paid for their work?

5. What is controlling and what does it involve?

B) Say if the statements are True or False:

1. Together, leading and motivating are often referred to as planning.

2. Controlling is the process of evaluating and regulating ongoing activities to ensure that goals are achieved.

3. If a strategic plan will take five years to complete, the firm may develop five tactical plans, one covering each year.

The most fundamental type of goal is the organization’s mission, which is the reason for the organization’s existence.

The objective of the Secret Service is to protect the life of the president.

6. An organization’s strategy is its broadest set of plans and is developed as a guide for major policy setting and decision-making.

7. Obviously, different people do things for the same reasons – that is, they have the same motivations.

8. Part of the manager’s job, then, is to determine what things motivate subordinates and to try to provide those things in a way that encourages effective performance.

9. The leading and motivating functions are concerned with the material resources within the organization.

10. Optimization is a difficult process.

II. FOCUS ON GRAMMAR

A) Insert the following prepositions into the gaps:

1. The leading and motivating functions are concerned …. the human resources within the organization. 2. However, if profit has increased by only 1 percent after three months, some corrective action would be needed to get the firm …… track. 3. Some are primarily interested ….. earning as much money as they can. 4. Later he might need to hire full-time sales personnel, other people to assist ……. production, and an accountant. 5. Finally, an objective is a specific statement detailing what the organization intends to accomplish as its goes ……. its mission. 6. When faced …… the marketing-versus-production conflict we have just described, most managers would probably not adopt either viewpoint completely. 7. The goals developed for these different levels must be consistent …… one another. 8. A firm’s strategy defines what business the company is …. or wants to be in and the kind of company it is or wants to be. 9. Others may be spurred ….. by opportunities to get ahead in an organization. 10. The particular action that is required depends … the reason for the low increase in profit.

III. DISCUSSION

Work in pairs and discuss the following issues:

You are the owner and only employee of a firm that you started this morning. Your firm is to produce and sell hand-sewn canvas pants to clothing stores. (You, of course are an expert tailor).

a) Write out your firm’s purpose, its mission, and at least two of its objectives.

b) Write out your firm’s sales strategy and a tactical plan that follows from the sales strategy. Make sure the strategy is in keeping with your goals.

c) Write out one sales policy to be followed by your firm, and one SOP that implements the policy.

IV. VOCABULARY PRACTICE

A) Match the words with their definitions:

Goal, goal setting, purpose, mission, objective, plan, planning, strategy, tactical plan, policy, standard operating procedure, organizing, leading, motivating, directing, controlling.

1. the processes involved in developing plans

2. a general guide for action in a situation that occurs repeatedly

3. the process of evaluating and regulating ongoing activities to ensure that goals are achieved

4. the means by which an organization is to fulfill its purpose

5. a specific statement detailing what the organization intends to accomplish as its goes about its mission

6. the combined processes of leading and motivating

7. an end state that the organization is expected to achieve

8. the broadest set of plans and is developed as a guide for major policy setting and decision-making

9. the process of influencing people to work toward a common goal

10. the process of developing a set of goals

11. a plan that outlines the steps to be taken in a situation that arises again and again

12. the grouping of resources and activities to accomplish some end result in an efficient and effective manner

13. a smaller-scale plan developed to implement a strategy

14. the process of providing reasons for people to work in the best interests of the organization

15. an outline of the actions by which the organization intends to accomplish its goals

16. the reason for the organization’s existence

V. WRITING

A) Translate into English: