Unit 1 Numbers and You

Most people working in finance, whether it is in accountancy, banking,

broking, investment, insurance, or whatever, spend a lot of time dealing with
numbers. Reading, hearing, saying, writing, numbers in a foreign language
generally requires practice.
When do you need to work with numbers?
1. I work in.................
2. I need the English of Finance for..........
I regularly read numbers in English in:
1. textbooks 4. accounts
2. newspapers 5. company documents
3. magazines and journals 6....................
I hear numbers spoken in English when..........
I have to use numbers in English:
1. in the classroom 3. on the phone
2. in meetings 4...................
in order to:
Tick which of the following you have to do in English:
1. buy goods or services over the telephone
2. describe graphs
3. discuss accounts
4. discuss customers' bank accounts
5. discuss projects with colleagues
6. discuss the market price of securities
7. draw up budgets
8. negotiate with producers, customers, brokers, etc.
9. present accounts and results to managers, colleagues, shareholders
10. present products or services to customers
11. sell products or services over the telephone
12. talk with technicians

Saying Numbers

1. OH, ZERO, LOVE, NOUGHT, NIL!

The above are all ways of saying 0 in English.

We say oh
after a decimal point 5.03 five point oh three
in telephone numbers 67 01 38 six seven oh one three
eight
in bus numbers No. 701 get the seven oh one
in hotel room numbers Room 206 I'm in room two oh six.
in years 1905 nineteen oh five

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We say nought
before the decimal point 0.02 nought point oh two
We say zero
for the number 0 the number zero
for temperature -5°C five degrees below zero
We say nil
in football scores 5-0 Spain won five nil.
We say love
in tennis 15-0 The score is fifteen love.

Now say the following:

1. The exact figure is 0.002.
2. Can you get back to me on 01244 249071? I'll be here all morning.
3. Can you put that on my bill? I'm in room 804.
4. Do we have to hold the conference in Reykjavik? It's 30 degrees below 0!
5. What's the score? 2-0 to Juventus.

3.
HE DECIMAL POINT

In English, we use a point (.) and not a comma (,) for decimals. We use
commas in figures only when writing thousands.
10,001 is ten thousand and one.
10.001 is ten point oh oh one.

When accounts are prepared on computer, commas are not used. The number
appears as 82103.

In English all the numbers after a decimal point are read separately:
10.66 ten point six six Not ten point sixty six
0.325 nought point three two five
0.001 nought point oh oh one or 10, ten to the power minus three

You will also hear people say:

0.05 zero point oh five or oh point oh five
But if the number after the decimal point is a unit of money, it is read like a
normal number:
£12.50 twelve pounds fifty € 2.95 two Euros ninety five
NB. This is very important. When you do business on the phone, say nought
point three seven five (0.375) and not nought point three hundred and seventy
five. If the listener missed the word point, you might lose a lot of money. Say
the digits separately after the point.

Now say the following:

1. It's somewhere between 3.488 and 3.491.
2. Look, it's less than 0.0001! It's hardly worth worrying about.
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3. I changed all those yen into sterling and I only got £13.60!
4. That's about 14.50 in Swiss francs.
5. Did you say 0.225 or 0.229?
6. The dollar is at 1.95.
7. No, I meant 15.005 not 15,005.

3.
ER CENT

The stress is on the cent of per cent ten per CENT

Notice the following when talking about interest rates:
0.5 % a half of one per cent
0.25% a quarter of a percentage point
For example:
The Bank of England raised interest rates this morning by a quarter of a
percentage point.

Now say the following:

1. What's 30% of 260?
2. They have put the rate up by another 0.5%.
3. 0.75% won't make a lot of difference.

4. HUNDREDS, THOUSANDS, AND MILLIONS

In British English you hear a hundred and twenty three.

In American English you usually hear a hundred twenty three.
The number 1,999 is said one thousand nine hundred and ninety
nine
The year 1999 is said nineteen ninety nine.
The year 2000 is said the year two thousand.
The year 2001 is said two thousand and one.
The year 2015 is said two thousand and fifteen or twenty fifteen.
Note: It is likely that different people will refer to the early years of the 21st
century in different ways
Remember that the year 1066 is always referred to as ten sixty six - not one
thousand and sixty six.
1,000,000 is a million or ten to the power six. (106)
1,000,000,000 is a billion or ten to the power nine. (109)
This is now common usage. British English used to be that a billion was ten
to the power twelve (1012) but now everyone has accepted the current
American usage.

Now say the following:

1. Why do you say 175 in Britain? In the States we usually say 175.
2. It's got 1001 different uses.
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3. Profits will have doubled by the year 2000.
4. Thanks. You're one in 1,000,000!
5. No, that's 2,000,000,000 not 2,000,000!

5. SQUARES, CUBES, AND ROOTS

102 is ten squared.

103 is ten cubed.

is the square root of 6.

6. TELEPHONE AND FAX NUMBERS

We usually give telephone and fax numbers as individual digits:

01273 736344 oh one two seven three, seven three six, three four four
344 can also be said as three double four
44 26 77 double four, two six, double seven
777 can be said as seven double seven, or seven seven seven

7. FRACTIONS

Fractions are mostly like ordinal numbers (fifth, sixth, twenty third etc):
a third a fifth a sixth
Notice, however, the following:
a half a quarter three quarters
three and a half two and three quarters

Now read the following news item:

In an opinion poll published today, over 3/4 of the electorate say they intend
to vote in next month's referendum. 1/4 of voters say they will definitely vote Yes,
while 1/3 will vote No. But that leaves over 2/5 of the voters who haven't made up
their minds. Both sides remain hopeful. A spokesman for the 'Yes' campaign said,
"At the moment, 2/3 of the electorate won't vote No." A spokeswoman for the other
side replied, "That's true, but 3/4 won't vote Yes!"

8. CALCULATING

Remember to pronounce the s in equals as /z/. It is singular; the part on the left
equals the part on the right.
10 + 4 = 14 ten plus four is fourteen
ten and four equals fourteen
10-4 = 6 ten minus four is six
ten take away four equals six
10 x 4 = 40 ten times four is (or equals) forty

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 ten multiplied by four is forty
1
10 : 4 = 2 /2 ten divided by four is two and a half
+ = add = subtract (or deduct) x = multiply : = divide

Other ways of saying divide are:

per Fr/$ francs per dollar

6% p.a. six per cent per annum
over (x - y)/z x minus y, over z which is not the
same as x, minus y over z: x — y/z

9. FOREIGN CURRENCY

Notice these ways of speaking about exchange rates:

How many yen are there to the dollar?
How many yen per dollar did you get?
The current rate is about 1.6 Euros to the pound.
How would you say these dollar rates?
DollarRates
Australia.................1.4060-1.4070
Canada ..................1.3756-1.3766
Hong Kong...........7.7360-7.7370
Japan............................84.96-85.01

10. NUMBERS AS ADJECTIVES

When a number is used before a noun - like an adjective - it is always

singular. We say:
a fifty-minute lesson not a fifty-minutes lesson
Here are more examples:

a sixteen-week semester a thirty-five pound book

a fifteen-minute walk a six-week waiting list
a twenty-pound reduction a two and a half litre bottle
a six billion dollar loan a two litre engine

Say the following in a similar way:

1. They lent us £250,000. They gave us a

[Link] house is 200 years old. We bought a
[Link] lost $50,000. We made a
4- The salmon weighed 15 pounds! I caught a

11. REVIEW

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How many of the following can you say aloud in under 1 minute?
1. 234,567
2. 1,234,567,890
3. 1.234
4. 0.00234%
5. 3.14159
6. $19.50
7. £7.95
8. 19,999
9. 1,999 years
10. In 1999
11. I think the phone number is 01227-764000.
12. Have you got a pen? Their fax number is: 00 33 567 32 49.
13. Please pay it into my account - number G4.744-440.
14. He was born in 1905 and died in 1987.
15. It's a white Lamborghini Diabolo, registration number MI 234662, and it
looks as if it's doing 225 kilometres an hour!
16. 30 x 25 = 750
17. 30 / 25 = 1.20
18. x2 + y3 = z

Unit 2 The three sectors of the economy

Part 1

The economic infrastructure

Assignment 1. In this extract from David Lodge's novel Nice Work, Robyn
Penrose a university English lecturer, is accompanying Vic Wilcox, the
managing director of a manufacturing company, on a business trip to Germany.
She looks out of the aeroplane window, and begins to think about the essentially
English act of making a cup of tea.

What is the key point that this extract is making about economies?

Sunlight flooded the cabin as the plane changed course. It was a bright, clear
morning. Robyn looked out of the window as England slid slowly by beneath
them: cities and towns, their street plans like printed circuits, scattered over a
mosaic of tiny fields, connected by the thin wires of railways and motorways.
Hard to imagine at this height all the noise and commotion going on down
there. Factories, shops, offices, schools, beginning the working day People
crammed into rush hour buses and trains, or sitting at the wheels of their cars

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in traffic jams, or washing up breakfast things in the kitchens of pebble-
dashed semis. All inhabiting their own little worlds, oblivious of how they
fitted into the total picture. The housewife, switching on her electric kettle to
make another cup of tea, gave no thought to the immense complex of
operations that made that simple action possible: the building and
maintenance of the power station that produced the electricity, the mining of
coal or pumping of oil to fuel the generators, the laying of miles of cable to
carry the current to her house, the digging and smelting and milling of ore or
bauxite into sheets of steel or aluminium, the cutting and pressing and
welding of the metal into the kettle's shell, spout and handle, the assembling
of these parts with scores of other components - coils, screws, nuts, bolts,
washers, rivets, wires, springs, rubber insulation, plastic trimmings; then the
packaging of the kettle, the advertising of the kettle, the marketing of the
kettle to wholesale and retail outlets, the transportation of the kettle to
warehouses and shops, the calculation of its price, and the distribution of its
added value between all the myriad people and agencies concerned in its
production. The housewife gave no thought to all this as she switched on her
kettle. Neither had Robyn until this moment, and it would never have
occurred to her to do so before she met Vic Wilcox.
(David Lodge: Nice Work)
Assignment 2. In the 20th century the economy was described as consisting of
three sectors:

• the primary sector: agriculture, and the extraction of raw materials from the
earth;

• the secondary sector: manufacturing industry, in which raw materials are

turned into finished products (although of course many of the people working
for manufacturing companies do not actually make anything, but provide a
service-administration, law, finance, marketing, selling, computing, personnel,
and so on);

• the tertiary sector: the commercial services that help industry produce and
distribute goods to the final consumers, as well as activities such as education,
health care, leisure, tourism, and so on.

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The text lists a large number of operations belonging to the different sectors of
the economy. Classify the 18 activities from the text according to which sector
they belong to:

advertising products assembling building

calculating prices cutting metal digging iron ore
distributing added value laying cables maintenance
marketing products milling metal mining coal
packaging products pressing metal pumping oil
smelting iron transportation welding metal

Can you think of three important activities to add to each list (not necessarily
in relation to the kettle)?

Assignment 3. Which sector do you intend to work in or do you already work in?
How do you 'fit into the total picture'?

Assignment 4. How many people in the tertiary sector have you already spoken
to today (travelling to institute or shopping, eating, and so on)? What about
people in the other two sectors? When did you last talk to someone who grew or
produced food, for example?

Assignment 5. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:

1. managing director
2. manufacturing company
3. rush hour
4. maintenance of the power station
5. pumping of oil
6. mining of coal
7. laying of cable
8. smelting of ore
9. cutting and pressing of metal
[Link] of metal
11. assembling
12. wholesale and retail outlets
[Link] of the added value
[Link] materials
[Link] of raw materials
[Link] product
[Link] of price
18. transportations

Assignment 6. Translate the sentences:

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1. Утримання такого великого магазину потребує великих коштів.
2. Точки збуту бувають роздрібні та оптові, звичайно саме в оптових
точках ціни нижчі.
3. На сьогоднішній день в Японії налічується 17 атомних
електростанцій.
4. Євген Патон був першим у світі, хто винайшов електричне
зварювання.
5. Забезпечення роботи електростанції – першочергове завдання цієї
групи людей.
6. Точки роздрібної торгівлі переповнені підробленими годинниками
Swatch.
7. Оман лідує за видобутком нафти у абсолютних показниках.
8. Підрахунок ціни на високотехнологічну продукцію завжди був
складним процесом, який вимагав врахування багатьох факторів впливу
на нього.
9. Перевезеннями у нашій компанії займається окремий відділ.

Assignment 7. Some people now describe the economy as having five sectors,
consisting of information services such as computing, ICT (information and
communication technologies, consultancy and R&D (research and development,
particularly in scientific fields). Broader definitions add intellectual activities
including culture.
Now read and discuss the text.
A nation’s economy can be divided into various sectors to define the
proportion of the population engaged in the activity sector. This
categorization is seen as a continuum of distance from the natural
environment. The continuum starts with the primary sector, which concerns
itself with the utilization of raw materials from the earth such as agriculture
and mining. From there, the distance from the raw materials of the earth
increases.

Primary Sector

The primary sector of the economy extracts or harvests products from the
earth. The primary sector includes the production of raw material and basic
foods. Activities associated with the primary sector include agriculture (both
subsistence and commercial), mining, forestry, farming, grazing, hunting and
gathering, fishing, and quarrying. The packaging and processing of the raw
material associated with this sector is also considered to be part of this sector.

In developed and developing countries, a decreasing proportion of workers

are involved in the primary sector. About 3% of the U.S. labor force is
engaged in primary sector activity today, while more than two-thirds of the
labor force were primary sector workers in the mid-nineteenth century.

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Secondary Sector

The secondary sector of the economy manufactures finished goods. All of

manufacturing, processing, and construction lies within the secondary sector.
Activities associated with the secondary sector include metal working and
smelting, automobile production, textile production, chemical and engineering
industries, aerospace manufacturing, energy utilities, engineering, breweries
and bottlers, construction, and shipbuilding.

Tertiary Sector

The tertiary sector of the economy is the service industry. This sector
provides services to the general population and to businesses. Activities
associated with this sector include retail and wholesale sales, transportation
and distribution, entertainment (movies, television, radio, music, theater, etc.),
restaurants, clerical services, media, tourism, insurance, banking, healthcare,
and law.

In most developed and developing countries, a growing proportion of workers

are devoted to the tertiary sector. In the U.S., more than 80% of the labor
force are tertiary workers.

Quaternary Sector

The quaternary sector of the economy consists of intellectual activities.

Activities associated with this sector include government, culture, libraries,
scientific research, education, and information technology.

Quinary Sector

Some consider there to be a branch of the quaternary sector called the quinary
sector, which includes the highest levels of decision making in a society or
economy. This sector would include the top executives or officials in such
fields as government, science, universities, nonprofit, healthcare, culture, and
the media.

by Matt Rosenberg

Now answer the question:

What activities are associated with
1) the primary sector:
2) the secondry sector:
3) the tertiary sector:
4) the quartenary sector:
5) quinary sector ?

Part 2

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Manufacturing and services

Assignment 1. Read the text, answer the questions and express your own
opinion about the problem raised in the text

Two hundred years ago, the vast majority of the population of virtually every
country lived in the countryside and worked in agriculture. Today, in what
many people call 'the advanced industrialized countries', only 2-3% of the
population earn their living from agriculture. But some people already talk
about 'the post-industrial countries', because of the growth of service
industries, and the decline of manufacturing, which is moving to 'the
developing countries'.
Is manufacturing industry important? Is its decline in the 'advanced' countries
inevitable? Will services adequately replace it?

Assignment 2. Read this extract from an interview with the well-known

Canadian economist, John Kenneth Galbraith, and answer the questions.

1. Why do people worry about the decline of manufacturing?

2. Which activities are as important as the production of goods?
3. Should people worry about this state of affairs?

We worry about unemployment and the loss of manufacturing industry in the

advanced industrial countries only because we don't look at the larger social
developments. The US, for example, no longer depends on heavy industry for
employment to the extent that it once did. This is related to a larger fact that
has attracted very little discussion. After a country's people are supplied with
the physical objects of consumption, they go on to concern about their design.
They go on to an enormous industry persuading people they should buy these
goods; they go on to the arts, entertainment, music amusement - these become
the further, later stages of employment. And these are things that are
extremely important. Paris, London, New York and so on do not live on
manufacturing; they live on design and entertainment. We do not want to
consider that this is the solid substance of economics, but it is. I don't think it
is possible to stop this progressive change in the patterns of human
consumption. It is inevitable.

(J.K. Galbraith in conversation with Steve Platt, New Statesman and Society)

Assignment 3. Here is a short interview with Denis MacShane, a British

Member of Parliament for the Labour Party. Does he hold the same view as J.K.
Galbraith? Do you agree with either of these views?

Interviewer Denis MacShane, do you agree with the people who say that
manufacturing industry will inevitably decline in what we call the
industrialized countries?
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Denis MacShane I think manufacturing will change, convert itself. There are
many new products that have to be invented to serve new needs, and they can
be made in the advanced countries because in fact the technology of
production means you need very little labour input. I'm holding in my hand a
simple pen that British Airways gives away to its passengers. It is made in
Switzerland, a pen, a low-tech product, made in Switzerland, with the highest
labour costs in the entire world, and British Airways, a British company,
having to pay in low value pounds, is buying from Switzerland a
manufactured product. Now what's going on here? It seems to me that the Swiss
— and they also manage to do it with their watches, the famous Swatch - have
stumbled on a new secret, which is how to make low-tech products, sell them
profitably, but actually make them in a country where in theory there should
be no more manufacturing, and if you look at any of the successful economies
of the 1990s, they all have a strong manufacturing component.
Interviewer Which countries are you thinking of?
Denis MacShane I'm thinking of the dynamic Asian economies, all based on
manufacturing, I'm thinking indeed of the United States which now has
created for example a new computer, high-tech computer industry, its car
industry is coming right back in America. America is a giant manufacturing
economy, which is why it is still the richest nation in the world, so I am
extremely dubious of the theorists who say that manufacturing has no future
in the advanced industrialized countries.

British Member of Parliament, Denis MacShane

Assignment 4. Answer the following questions.

1 Why does MacShane think that manufacturing has a future?

2 Why does MacShane think that manufacturing has a future in the advanced
countries?
3 Why, however, is this manufacturing unlikely to solve the problem of
unemployment?
4 What does MacShane mean by 'in theory there should be no more
manufacturing' in Switzerland? (It is this theory that makes many people argue
that manufacturing must move to 'less-developed' countries.)
5 Why does he say it is surprising for a British company to be buying Swiss
goods?
6 What is the reason he gives for the United States still being the richest nation
in the world?
7 Match up the following expressions and definitions:

A manual work
B to change from one thing to another
C to be uncertain, disbelieving
D to satisfy people's desires or requirements
E to discover something by accident
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1 to convert itself
2 to serve needs
3 labour input
4 to stumble on
5 to be dubious

Assignment 5. Summarize both Galbraith's and MacShane's arguments in a

short paragraph of fewer than 50 words.

Assignment 6. Read the following statements about manufacturing and

services in advanced countries. Which of them do you find the most
convincing and why?

1. A lot of service sector jobs depend on manufacturing industry.

Manufacturing companies provide work for accountants, lawyers, designers,
salespeople, marketers, IT specialists, etc.
2. Advanced countries have expertise in higher education, R&D, ICT,
business consulting, etc. They should concentrate on these strengths, rather
than trying to make things more cheaply than less-developed countries.
3. Manufacturing industry will inevitably decline in advanced countries and
be replaced by services, because labour costs are too high. Companies will
delocalize their manufacturing to low-cost countries.
4. Depending on service industries is dangerous; after the financial crisis in
2008, New York and London didn't only lose financial jobs, but also lots of
jobs in all the related service industries: law firms, real estate, expensive
restaurants, etc. Big cities need factories too.
5. Service functions such as call centers , accounting, writing software , can
all be outsourced to companies in cheaper countries. Consequently, advanced
countries should concentrate on high-quality manufacturing, which requires
skills that cannot be outsourced or delocalized.

Assignment 7. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:

1. industrialized countries
2. developing countries
3. to earn one’s living from agriculture
4. service industries
5. consumption
6. manual work
7. to convert oneself
8. to serve the needs of smb
9. labour input
10. to be dubious of smth
11. to stumble on smth
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12. manufactured product
13. low value pounds
14. low-tech product
15. labour costs
16. inevitable
17. decline of manufacturing

Assignment 8. Translate the sentences:

1. Зазвичай, виробництво низькотехнологічних продуктів потребує

незначних затрат на виробництво, що робить його особливо
привабливим для країн, що розвиваються.
2. Ця машина – низькотехнологічний продукт, але вона задовільняє
потреби більшої частини населення Лівії.
3. Ринок продуктів харчування задовольняє потреби споживачів.
4. На мою думку, секрет зростання виробництва в країнах, що
розвиваються – невеликі затрати на робочу силу.
5. Я дуже сильно сумніваюсь, що в Зімбабве високі затрати на оплату
праці.
6. За таких умов неминуче буде спостерігатися спад на інформаційному
ринку.
7. Для того, щоб задовольняти потреби країни потрібно повністю
трансформувати виробничу сферу.
8. Під час рецесії у Британії, коли в обігу перебували дешеві фунти,
чимало закордонних компаній наштовхнулися на неочікувану
можливість більш вигідно збувати там свої товари, що було
неможливим до цього через жорстку політику імпорту в Англії.
9. Припущення урядових аналітиків щодо економічного росту на
наступний рік є дуже сумнівними.

Assignment 9. Read and translate the text:

Manufacturing industry
Manufacturing industry refers to those industries which involve the manufacturing and
processing of items and indulge in either creation of new commodities or in value
addition. The manufacturing industry accounts for a significant share of the industrial
sector in developed countries. The final products can either serve as finished goods for
sale to customers or as intermediate goods used in the production process.
Evolution of the manufacturing industry:
Manufacturing industries came into being with the occurrence of technological and
socio-economic transformations in the Western countries in the 18th-19th century.

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This was widely known as industrial revolution. It began in Britain and replaced the
labor intensive textile production with mechanization and use of fuels.
Working of manufacturing industry:
Manufacturing industries are the chief wealth producing sectors of an economy. These
industries use various technologies and methods widely known as manufacturing
process management. Manufacturing industries are broadly categorized into
engineering industries, construction industries, electronics industries, chemical
industries, energy industries, textile industries, food and beverage industries,
metalworking industries, plastic industries, transport and telecommunication
industries. Manufacturing industries are important for an economy as they employ a
huge share of the labor force and produce materials required by sectors of strategic
importance such as national infrastructure and defense. However, not all
manufacturing industries are beneficial to the nation as some of them generate negative
externalities with huge social costs. The cost of letting such industries flourish may
even exceed the benefits generated by them.
Owing to the emerging technologies worldwide, the world manufacturing industry has
geared up and has incorporated several new technologies within its purview.
Economists consider the World manufacturing industry as a sector which generates a
lot of wealth. Generating employment, introducing latest techniques, real earnings
from shipments etc., have put the world manufacturing industry in a favorable
position.
World Manufacturing Industry:
With the implementation of the concept of eco friendly environment, world
manufacturing industry has taken several measures to ensure that the manufacturing
industries worldwide abide by the eco friendly norms. World manufacturing industry
also plays an important role in the defense of a country. By manufacturing aircraft
which play a vital role in the country's defense, the aerospace manufacturing industry
acts as a shield. Other industries in the manufacturing sector manufacture products
which are indispensable in our daily lives. With regard to the GDP or gross domestic
product, world manufacturing industry contributes to the global economy as well as
the global GDP.
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Assignment 10. Answer the following questions:

1. What does manufacturing industry refer to?

[Link] did manufacturing industry come into being?
3. What methods and technologies do manufacturing industries use?
4. What are manufacturing industries categorized into?
5. Why are manufacturing industries so important?
6. Are all manufacturing industries beneficial to the nation?

Assignment 11. Match up the words on the left with the definition on the
right and translate them:

1. commodity a. Material or item that is a final-product of a process, but is

also used as an input in the production process of some other
good. (Raw materials, such as steel, which will be
transformed into another form.)

2. value addition b.A reasonably homogeneous good or material, bought and

sold freely as an article of commerce

[Link] [Link] between the total sales revenue of an industry

goods and the total cost of components, materials,
and services purchased from other firms within
a reporting period (usually one year). It is
the industry's contribution to the gross domestic product
(GDP)

[Link] d. Materials or products which have received the

final increments of value through manufacturing or processi
ng operations, and which are
being held in inventory for delivery, sale, or use.

[Link] domestic e. Range of control or expertise.

product

6. finished goods f. A consequence of an economic activity that is experienced

by unrelated third parties. It can be either positive or
negative.

7. purview g. The value of a country's overall output of goods and

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 services (typically during one fiscal year) at market prices,
excluding net income from abroad.

Unit 3. Management

Part 1

Management - an art or a science?

Assignment 1. Answer the following questions:

[Link] is management? Is it an art or a science? An instinct or a set of skills

and techniques that can be taught?

2. What do you think makes a good manager? Which four of the following
qualities do you think are the most important?

A being decisive: able to make quick decisions

B being efficient: doing things quickly, not leaving tasks unfinished, having a
tidy desk, and so on
C being friendly and sociable
D being able to communicate with people
E being logical, rational and analytical
F being able to motivate and inspire and lead people
G being authoritative: able to give orders
H being competent: knowing one's job perfectly, as well as the work of one's
subordinates
I being persuasive: able to convince people to do things
J having good ideas
K being highly educated and knowing a lot about the world
L being prepared to work 50 to 60 hours a week
M wanting to make a lot of money Are there any qualities that you think
should be added to this list?

3. Which of these qualities can be acquired? Which must you be born with?

Assignment 2. This text summarizes some of Peter Drucker's views on

management. As you read about his description of the work of a manager,
decide whether the five different functions he mentions require the four
qualities you selected in your discussion, or others you did not choose.

WHAT IS MANAGEMENT?

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 Peter Drucker, the well-known American business professor and consultant,
suggests that the work of a manager can be divided into planning (setting
objectives), organizing, integrating (motivating and communicating), measuring,
and developing people.
First of all, managers (especially senior managers such as company chairmen
– and women - and directors) set objectives, and decide how their organization
can achieve them. This involves developing strategies, plans and precise tactics,
and allocating resources of people and money.
Secondly, managers organize. They analyse and classify the activities
of the organization and the relations among them. They divide the work into
manageable activities and then into individual jobs. They select people to
manage these units and perform the jobs.
Thirdly, managers practise the social skills of motivation and communication.
They also have to communicate objectives to the people responsible for
attaining them. They have to make the people who are responsible for
performing individual jobs form teams. They make decisions about pay and
promotion. As well as organizing and supervising the work of their
subordinates, they have to work with people in other areas and functions.
Fourthly, managers have to measure the performance of their staff, to see
whether the objectives set for the organization as a whole and for each individual
member of it are being achieved.
Lastly, managers develop people - both their subordinates and themselves.
Obviously, objectives occasionally have to be modified or changed. It is
generally the job of a company's top managers to consider the needs of the
future, and to take responsibility for innovation, without which any
organization can only expect a limited life. Top managers also have to manage a
business's relations with customers, suppliers, distributors, bankers, investors,
neighbouring communities, public authorities, and so on, as well as deal with any
major crises which arise. Top managers are appointed and supervised and advised
(and dismissed) by a company's board of directors.

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 Although the tasks of a manager can be analysed and classified in this fashion,
management is not entirely scientific. It is a human skill. Business professors
obviously believe that intuition and 'instinct' are not enough; there are
management skills that have to be learnt. Drucker, for example, wrote nearly 30
years ago that 'Altogether this entire book is based on the proposition that the days
of the "intuitive" manager are numbered,'* meaning that they were coming to an
end. But some people are clearly good at management, and others are not. Some
people will be unable to put management techniques into practice. Others will
have lots of technique, but few good ideas. Outstanding managers are rather
rare.

Peter Drucker: An Introductory View of Management

Assignment 3. Complete the following sentences with these words.

achieved board of directors communicate innovations

manageable performance resources setting supervise

1. Managers have to decide how best to allocate the human, physical and
capital …….. available to them.
2. Managers - logically - have to make sure that the jobs and tasks given to
their subordinates are................ .
3. There is no point in..................objectives if you don't…….them to your
staff.
4. Managers have to..................their subordinates, and to measure, and try to
improve, their............................ .
5. Managers have to check whether objectives and targets are being ……… .
6. A top manager whose performance is unsatisfactory can be dismissed by the
company's.......................... .
7. Top managers are responsible for the ........... that will allow a company to
adapt to a changing world.

Assignment 4. The text contains a number of common verb-noun partnerships

(e.g. achieve objectives, deal with crises, and so on).
Match up these verbs and nouns to make common collocations.

allocate decisions
communicate information
develop jobs
make objectives
PAGE \* MERGEFORMAT 21
measure people
motivate performance
perform resources
set strategies
supervise subordinates

Assignment 5. These are (apparently) genuine memos circulated by managers in

American companies:

As of tomorrow, employees will only be able to access the building using

individual security cards. Pictures will be taken next Wednesday and
employees will receive their cards in two weeks.

We know that communication is a problem in this company but we are not

going to discuss it with the employees.

This project is so important, we can't let things that are more important interfere with
it.

What I need is a list of specific unknown problems we will encounter.

Teamwork is a lot of people doing what I say.

Assignment 6. Now imagine that you are a stupid manager ( no—of course it
will never really happen to you!) and write the most ridiculous memo that you
can think of to all company staff.

MEMO
From:
To:
Subject:

Assignment 7. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:

1. decisive
2. efficient
3. rational
4. authoritative
5. to supervise subordinates
6. to set objectives
7. to develop people
8. senior managers
9. to allocate resources of people and money
10. to perform jobs
11. manageable activities
PAGE \* MERGEFORMAT 21
12. to communicate objectives
13. to attain
14. promotion
15. to modify objectives
16. to consider the needs of the future
17. innovation
18. customers
19. suppliers
20. neighbouring communities
21. public authorities
22. to appoint
23. board of directors
24. to put techniques into practice
25. the days are numbered

Assignment 8. Translate the sentences:

1. Важливо не тільки мати теоретичні знання, а й використовувати їх на

практиці.
2. Дні компанії, яка виробляє застарілі товари, добігають кінця.
3. Крім організації та спостереження за роботою своїх підлеглих
менеджер має співпрацювати з інвесторами, постачальниками,
банкирами, місцевими громадськими організаціями, органами державної
влади та людьми з інших сфер.
4. Вона давно навчилася оцінювати продуктивність праці персоналу, що
робить її надзвичайно цінним членом нашої команди.
5. Ми повинні призначити групу ініціативних осіб, відповідальних за
зв’язок із місцевими громадами.
6. Наразі в сесійній залі відбувається нагальна зустріч ради директорів
компанії.
7. На засіданні головні менеджери та директор компанії затвердили
нову стратегію розвитку.
8. Кожен відповідає за якісне виконання роботи перед керівництвом.
9. Враховуючи майбутні потреби, рада директорів вирішила змінити
тактику розподілу людських та фінансових ресурсів.
10.Очевидно, втілювати нову техніку управління у життя непросто.
11.Контроль роботи підлеглих здійснюється менеджерами цієї компанії
постійно.

Assignment 9. Read and translate the text about Scientific Management:

Frederick Taylor and Scientific Management

How did current management theories develop?

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People have been managing work for hundreds of years, and we can trace
formal management ideas to the 1700s. But the most significant developments
in management theory emerged in the 20th century. We owe much of our
understanding of managerial practices to the many theorists of this period,
who tried to understand how best to conduct business.
Historical Perspective
One of the earliest of these theorists was Frederick Winslow Taylor. He
started the Scientific Management movement, and he and his associates were
the first people to study the work process scientifically. They studied how
work was performed, and they looked at how this affected worker
productivity. Taylor's philosophy focused on the belief that making people
work as hard as they could was not as efficient as optimizing the way the
work was done.
In 1909, Taylor published "The Principles of Scientific Management." In this,
he proposed that by optimizing and simplifying jobs, productivity would
increase. He also advanced the idea that workers and managers needed to
cooperate with one another. This was very different from the way work was
typically done in businesses beforehand. A factory manager at that time had
very little contact with the workers, and he left them on their own to produce
the necessary product. There was no standardization, and a worker's main
motivation was often continued employment, so there was no incentive to
work as quickly or as efficiently as possible.
Taylor believed that all workers were motivated by money, so he promoted
the idea of "a fair day's pay for a fair day's work." In other words, if a worker
didn't achieve enough in a day, he didn't deserve to be paid as much as
another worker who was highly productive.
With a background in mechanical engineering, Taylor was very interested in
efficiency. While advancing his career at a U.S. steel manufacturer, he
designed workplace experiments to determine optimal performance levels. In
one, he experimented with shovel design until he had a design that would
allow workers to shovel for several hours straight. With bricklayers, he
PAGE \* MERGEFORMAT 21
experimented with the various motions required and developed an efficient
way to lay bricks. And he applied the scientific method to study the optimal
way to do any type of workplace task. As such, he found that by calculating
the time needed for the various elements of a task, he could develop the "best"
way to complete that task.
These "time and motion" studies also led Taylor to conclude that certain
people could work more efficiently than others. These were the people whom
managers should seek to hire where possible. Therefore, selecting the right
people for the job was another important part of workplace efficiency. Taking
what he learned from these workplace experiments, Taylor developed four
principles of scientific management. These principles are also known simply
as "Taylorism".
Four Principles of Scientific Management

Taylor's four principles are as follows:

1. Replace working by "rule of thumb," or simple habit and common sense,
and instead use the scientific method to study work and determine the most
efficient way to perform specific tasks.
2. Rather than simply assign workers to just any job, match workers to their
jobs based on capability and motivation, and train them to work at maximum
efficiency.
3. Monitor worker performance, and provide instructions and supervision to
ensure that they're using the most efficient ways of working.
4. Allocate the work between managers and workers so that the managers
spend their time planning and training, allowing the workers to perform their
tasks efficiently.

Assignment 10. Answer the questions.

1. When did the first formal management ideas appear?
2. What principles did Taylor’s philosophy focus on?
3. What ideas did Taylor advance in his work “The principles of Scientific
Management”?
4. What did Taylor mean by saying “a fair day’s pay for a fair day’s work”?
5. What experiments did Taylor carry out to determine optimal performance
level?
6. Why is it so important to select certain people for the job?
7. Study the principles of scientific management and define whether they are
still actual nowadays?
Assignment 11. Find the words in the text with the following meaning:
PAGE \* MERGEFORMAT 21
1. To appear, to begin to be known or noticed
2. To find the origins of something, to study the history and development of
something
3. Someone who you work or do business with
4. To make the way that something is done or used as effective as possible
5. To work together in order to achieve a result that is good for both sides
6. The process and result of making all the things of one particular type the
same as each other
7. Something that encourages you to work harder, start new activities
8. To try various ideas, methods etc to see whether they will work or what
effect they will have
9. The quality of doing something well and effectively, without wasting time,
money or energy
10. To decide that something is true after considering the information you
have
11. To become larger in amount, number or degree

Assignment 12. Explain the meaning of the following words and word
combinations, translate them into Ukrainian and learn by heart.

- To manage work
- Significant developments
- To conduct business
- To affect productivity
- To advance an idea
- Continued employment
- To motivate by money
- To promote an idea
- Highly productive
- To advance one’s career
- Optimal performance level
- To apply the scientific method
- Rule of thumb
- Common sense
- To monitor performance

Assignment 13. Translate into English.

1. Менеджер має надати інструкції та забезпечити нагляд, щоб

впевнитися, що працівники виконують роботу найбільш ефективно.
PAGE \* MERGEFORMAT 21
2. Якщо робітник не виконав план протягом дня, він не заслуговує на
таку саму платню, як той робітник, що працював дуже продуктивно.
3. Якщо розрахувати час, який потрібен для виконання різних елементів
завдання, можна визначити найпродуктивніший спосіб виконання
цього завдання.
4. Якщо оптимізувати та спростити роботу, продуктивність зросте.
5. Для того, щоб розуміти, як найкраще вести бізнес, потрібно вивчати,
як виникли перші ідеї менеджменту, які наукові теорії виникли у ХХ
сторіччі, і як вони були застосовані на практиці.

Part 2

Meetings

'One can either work or meet. One cannot do both at the same time.'
(Peter Drucker: An Introductory View of Management)
What do you think Peter Drucker means by this comment?
In your experience - at work, or doing group projects at institute - is this true?
How much of the working week do you think managers should spend in
meetings?

Assignment 1. Read the computer journalist Robert X. Cringely's description

of the management style at IBM. Is he positive or negative about IBM's working
culture?

Every IBM employee's ambition is apparently to become a manager, and the

company helps them out in this area by making management the company's
single biggest business. IBM executives don't design products and write
software; they manage the design and writing of software. They go to meetings.
So much effort, in fact, is put into managing all the managers who are
managing things that hardly anyone is left over to do the real work. This means
that most IBM hardware and nearly all IBM software is written or designed by
the lowest level of people in the company - trainees. Everyone else is too busy
going to meetings, managing, or learning to be a manager, so there is little
chance to include any of their technical expertise in IBM products. Go back and
read that last paragraph over again, because that's why IBM products often aren't
very competitive.

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 IBM has layers and layers of management to check and verify each decision
as it is made and amended. The safety net is so big at IBM that it is hard to
make a bad decision. In fact, it is hard to make any decision at all, which turns out
to be the company's greatest problem and the source of its ultimate downfall
(remember, you read it here first).
(Robert X. Cringely: Accidental Empires)

Assignment 2. Explain in your own words exactly what Robert Cringely means
in the following sentences.

1 Every IBM employee's ambition is apparently to become a manager.

2 IBM makes management the company's single biggest business.
3 IBM executives manage the design and writing of software.
4 IBM products often aren't very competitive.
5 The safety net is so big at IBM that it is hard to make a bad decision.
6 This will be the source of the company's ultimate downfall.

Assignment 3. Find words in the text that mean the same as the words or
expressions below.

1 seemingly 6 knowledge and skill

2 computer programs 7 levels or strata
3 work, time and energy 8 to make certain that something is true
4 computers (and other machines) 9 corrected or slightly changed their
jobs
5 young workers still learning 10 collapse or failure

Assignment 4. Translate the sentences:

1. Використання застарілого обладнання та технологій може стати

причиною остаточного краху фірми.
2. Компанія Microsoft є однією з провідних компаній в галузі написання
програмного забезпечення.
3. Щоб стати стажером компанії Xerox треба мати спеціальні знання.
4. Мережа безпеки настільки потужна, що її неможливо зламати.
5. На різних рівнях управління контроль здійснюється однаково
жорстко.
6. Для перевірки та підтвердження кожного рішення була створена
окрема комісія.

PAGE \* MERGEFORMAT 21
7. Стажери часто пишуть прості модулі програмного забезпечення через
брак досвіду та технічних знань про сумісність апаратних та програмних
засобів.
8. Причиною остаточного краху стали непорозуміння між генеральним
та виконавчим директорами.
9. Мережа безпеки була погано розвинена, тому частина інформації
втрачена назавжди.

Part 3

The retail sector

Assignment 1. Here is a part of an interview with Steve Moody, the manager

of the Marks & Spencer store in Cambridge, England. What do you know
about Marks & Spencer? What do they sell?

Steve Moody So, as the store manager in Cambridge, which is probably the
fortieth largest of the 280 stores we have got, I am responsible for the day-to-
day running of the store. All the product is delivered to me in predescribed
quantities, and obviously I'm responsible for displaying that merchandise to its
best advantages, obviously I'm responsible for employing the staff to actually
sell that merchandise, and organizing the day-to-day logistics of the operation.
Much more running stores is about the day-to-day operation, and ensuring
that that's safe, and obviously because of the two hundred people that we
would normally have working here it's ensuring that they are well trained, that
they are well motivated, and that the environment they work in is a pleasant
one, that they are treated with respect, and that they are committed to the
company's principles.
Interviewer How much freedom do those people have within their jobs to
make decisions themselves? How much delegation is there of responsibility
down the chain?

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Steve Moody We would, as a business, like to encourage as much
accountability and delegation as possible. Of course that does depend on the
abilities of the individuals, the environment in which you're working, and the
time of year. With 282 stores we have a corporate appearance in the United
Kingdom's high streets. It is quite important that when customers come into
Marks & Spencer's Cambridge they get the same appearance and type of
looking store and the same level of service that they would expect if they went
into Marks & Spencer's Edinburgh in Scotland, for example, and it's very
important that we have a corporate statement that customers understand. So,
there are obviously parameters and disciplines that, you know, not only the
staff but supervision and management would follow. Within that, in terms of
development and training, training is obviously an investment for all staff. If
staff are trained to do their job well and they understand it, they will feel
confident in what they're doing, that in turn will give a better service to the
customers, obviously from Marks & Spencer's point of view it could well lead to
increased sales.
Interviewer Do you have meetings for members of staff where they can express
views about what's going on in the store?
Steve Moody We have a series of meetings, management and supervisory every
week, we have something which Marks & Spencer's call a focus group, which is
members of staff who get together regularly from all areas of the store, so from
the food section and perhaps the menswear section, from the office who do the
stock and accounting, and indeed the warehouse where people receive
goods. They have meetings, they discuss issues, they discuss problems that they
fed are going on in the store. They also discuss suggestions of how they can
improve that we run the store, and they discuss that amongst themselves first.
They will then have a meeting with members of management and obviously
myself, and we will discuss those issues and work together to try and provide
solutions. However, Marks & Spencer's philosophy, I suppose, is that meetings
should not be a substitute for day-to-day communication and therefore if
problems do arise in terms of the operation, or an individual has got a problem
PAGE \* MERGEFORMAT 21
in their working environment, or indeed their immediate line manager, or
indeed if they have a problem outside, which might be domestic or with their
family, we would like to discuss that as it arises and would like to encourage a
policy that they will come and talk to their supervisor or their manager, to see
what we can do to solve the problem.

Assignment 2 . Answer the questions:

1. Steve Moody describes the role and responsibilities of a store manager. Which
of the following tasks is he responsible for?
1) designing the store and its layout
2) displaying the merchandise
3) employing the sales staff
4) ensuring the safety of staff and customers
5) establishing the company’s principles
6) getting commitment from the staff
7) increasing profits
8) maintaining a pleasant working environment
9) motivating staff
10) organizing the day-to-day logistics
11) pricing the merchandise
12) running 40 out of 280 stores
13) selecting merchandise
14) supervising the day-to-day running of the store
15) training staff

2. Why are Marks & Spencer’s store managers limited in giving

accountability to their staff and delegating responsibilities? What do they
concentrate on instead?
3. What kinds of regular meetings does Steve Moody mention? Who attends
them?
4. What kind of problems cannot be dealt with by meetings?
5. How are such problems dealt with?

Assignment 3. After reading about management, do you think you have the
right skills to be a manager? Would you be able, for example, to set
objectives, motivate and coordinate the staff, and manage a department store,
or a computer manufacturer?

Assignment 4. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:

1. store manager
PAGE \* MERGEFORMAT 21
2. the day-to-day-running of the store
3. in predescribed quantities
4. to display merchandise to its best advantages
5. the day-to-day logistics
6. well trained
7. well motivated
8. to be treated with respect
9. to be committed to the company’s principles
10. to encourage accountability and delegation down the chain
11. corporate appearance
12. level of service
13. corporate statement
14. to follow parameters and disciplines
15. supervision
16. to lead to increased sales
17. to do the stock
18. to do the accounting
19. warehouse
20. to provide solutions
21. working environment
22. immediate line manager
23. in terms of the operation

Assignment 5. Translate the sentences:

1. Менеджер відповідає за повсякденну роботу магазину, доставку

товарів у визначеній кількості та за те, щоб представити ці товари
найкращим чином.
2. Персонал магазину має бути добре підготовленим та добре
мотивованим, щоб працювати у цій компанії.
3. Наш магазин знаходиться на головній вулиці Токіо, а рівень
обслуговування є найвищим у світі.
4. Кожен працівник має дотримуватись принципів компанії та
прийнятих у ній норм і порядків.
5. На жаль, рівень обслуговування у цьому ресторані залишає бажати
кращого.
6. Менеджер магазину також займається щоденними завданнями,
пов’язаним з логістикою.
7. Лише добре підготовані, вмотивовані, віддані принципам компанії
працівники складають ядро нашої корпорації.
8. Комфортне робоче середовище – ключ до швидкого знаходження
рішень.
9. Складські приміщення потребують модернізації для покращення
процесу доставки товарів в магазини, що дозволить збільшити продажі.

Test
PAGE \* MERGEFORMAT 21
 Assignment 1. Write down the word or word combination corresponding to
the following definition.

1. A place where goods are stored prior to their use, distribution, sale.
2. A number of people brought together to give their opinion on a
particular issue or product often for the purpose of market research.
3. A part or number larger than half the total.
4. To provide with an incentive, move to action; impel.
5. Something worked toward or striven for, a goal.
6. Somebody under the authority or control of another person.
7. Something newly introduced.
8. A group of persons chosen to govern the affairs of a corporation or
other large institution.
9. To distribute according to the plan.
10. Advancement in rank or position.
11. A guarantee, as a professional, physical or financial security.
12. To check or determine the correctness of truth of investigation,
reference, etc.
13. Sufficiently low in price or high in quality to be successful against
commercial rivals.
14. To control, manage or direct.
15. The rate at which goods or services are produced especially output per
unit of labour.

Assignment 2. Write down the definitions for the following words.

1. Efficient
2. Downfall
3. Competent
4. Layer
5. To amend

Assignment 3. Complete the sentences using the words from the texts.

- Although the task of a manager can be analysed and classified in this fashion,
1_____.
- IBM executives don’t design and write software; they 2_____.
- Obviously I am responsible for displaying 3_____, obviously I am
responsible for employing staff to actually 4______, and organizing 5_____
of the operation.
- After a country’s people are supplied with the 6_____, they go on to concern
about their design.

Assignment 4. Write down the principles of scientific management.

Assignment 5. Translate into English.

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1. Менеджер магазину отримує товари у заздалегідь визначених
кількостях і відповідає за демонстрацію товарів найкращим чином.
2. Наші робітники добре підготовлені, віддані принципам нашої
компанії, вони завжди ставляться з повагою до клієнтів та забезпечують
високий рівень обслуговування.
3. Будь-яка компанія, що має багато рівнів управління, має заохочувати
підзвітність та розподіл обов’язків по ланцюгу.
4. Стажери часто пишуть прості модулі програмного забезпечення через
брак досвіду та технічних знань про сумісність апаратних та програмних
засобів.
5. Менеджери мають бути авторитарними, рішучими та переконливими,
щоб контролювати підлеглих, а також оцінювати і покращувати
продуктивність їх роботи.

Unit 4 Company structure

Part 1

How are companies organized?

Assignment 1. Answer the questions:

• what kind of organization do you want to work for?

• in which department? (e.g. production, finance, accounting, marketing,
sales, human resources)
• what will you be responsible for?
• do you think it will later be possible to change departments?
• what do you think your first position will be?
• do you expect to have one immediate boss, to work for more than one
superior, or to be part of a team?

Assignment 2. These are some basic words used in relation to company

organization. Match them up with the definitions on the right.

1 autonomous A a system of authority with different levels, one

above the other

2decentralizatio B a specific activity in a company, e.g.

n production,

marketing, finance

3 function C independent, able to take decisions without

consulting a higher authority

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 4 hierarchy D people working under someone else in a
hierarchy

5 line authority E dividing an organization into decision-making

units that are not centrally controlled

6 report to F the power to give instructions to people at the

level below in the chain of command

7 subordinates G to be responsible to someone and to take

instructions from him or her

Assignment 3. Read the text below, about different ways of organizing

companies, and then label the diagrams, according to which of these they
illustrate:

line structure matrix structure functional structure staff position

COMPANY STRUCTURE

Most organizations have a hierarchical or pyramidal structure, with one body at

the top, and an increasing number of people below them at each successive level.
There is a clear line or chain of command running down the pyramid. All the
people in the organization know their duties, who their superior is (to whom they
report), and who their immediate subordinates are.
Some people in an organization have colleagues who help them: for example
Assistants. This is known as a staff position: its holder has no line authority, and
is not integrated into the chain of command.
Yet the activities of most companies are too complicated to be organized in
a single hierarchy. In the early XX century French industrialist Henry Fayol
organized his coal-mining business according to the functions that it had to
carry out. He is generally credited with inventing functional organization.
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Today, most large manufacturing organizations have a functional structure,
including (among others) production, finance, marketing, sales, and personnel or
human resources departments. This means, for example, that the production and
marketing departments cannot take financial decisions without consulting the
finance department.
But there are two standard criticisms. Firstly, people are usually more
concerned with the success of their department than that of the company, so
there are permanent battles between departments, which have incompatible
goals. Secondly, separating functions is unlikely to encourage innovation.
Yet for a large organization manufacturing a range of products, having a
single production department is generally inefficient. Consequently, most large
companies are decentralized, following the model of Alfred Sloan, who divided
General Motors into divisions that had their own engineering, production and
sales departments, made a different category of car.
Businesses that cannot be divided into autonomous divisions with their own
markets can simulate decentralization, setting up divisions that deal with each
other using internally determined transfer prices. Many banks, for example,
have established commercial, corporate, private banking, international and
investment divisions.
An inherent problem of hierarchies is that people at lower levels are unable to
make important decisions, but have to pass on responsibility to their boss. One
solution to this is matrix management, in which people report to more than one
superior.
A further possibility is to have wholly autonomous, temporary groups or teams
that are responsible for an entire project, and are split up as soon as it is
successfully completed. Teams are often not very good for decision-making, and
they run the risk of relational problems, unless they are small and have a lot of
self-discipline.

Assignment 4. Which of the following three paragraphs most accurately

summarizes the text, and why?

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First summary:

Although most organizations are hierarchical, with a number of levels, and a

line of command running from the top to the bottom, hierarchies should be
avoided because they make decision-making slow and difficult. A solution to
this problem is matrix management, which allows people from the traditional
functional departments of production, finance, marketing, sales, etc. to work
together in teams. Another solution is decentralization: the separation of the
organization into competing autonomous divisions.

Second summary:

Most business organizations have a hierarchy consisting of several levels and a

clear line of command. There may also be staff positions that are not
integrated into the hierarchy. The organization might also be divided into
functional departments, such as production, finance, marketing, sales and
personnel. Larger organizations are often further divided into autonomous
divisions, each with its own functional sections. More recent organizational
systems include matrix management and teams, both of which combine
people from different functions and keep decision-making at lower levels.

Third summary:

Most businesses are organized as hierarchies, with a clear chain of command: a

boss who has subordinates, who in turn have their own subordinates, and so
on. The hierarchy might be internally divided into functional departments. A
company offering a large number of products or services might also be
subdivided into autonomous divisions. Communication among divisions can
be improved by the introduction of matrix management or teams.

Assignment 5. The text mentions the often incompatible goals of the finance,
marketing and production (or operations) departments. Classify the following
strategies according to which departments would probably favour them.

1 a factory working at full capacity

2 a large advertising budget
3 a large sales force earning high commission
4 a standard product without optional features
5 a strong cash balance
6 a strong market share for new products
7 generous credit facilities for customers
8 high profit margins
9 large inventories to make sure that products are available
10 low research and development spending
11 machines that give the possibility of making various different products
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12 self-financing (using retained earnings rather than borrowing)

Assignment 6. Match up the definitions with the terms in the previous

assignment:

1) an amount of goods stored ready for sale

2) collective term for a company’s salespersons
3) producing as many goods as possible, or doing as much work as possible
4) profits generated by a company that are not distributed to shareholders as
dividends but are either reinvested in the business or kept as a reserve for
specific objectives (such as to pay off a debt or purchase a capital asset)
5) the money a company is willing to set aside to accomplish its marketing
objectives
6) A ratio of profitability calculated as net income divided by revenues, or
net profits divided by sales. It measures how much out of every dollar of sales
a company actually keeps in earnings.
7) A type of loan made in a business or corporate finance context.
8) The percentage of an industry or market's total sales that is earned by a
particular company over a specified time period.
9) The ideal amount of cash that a company wishes to hold in reserve at any
given point in time.

Part 2

Describing company structure

Assignment 1. This is an example of part of a company organization chart:

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The most common verbs for describing structure are:

consists of is composed of
contains
is made up of
includes
is divided into

e.g. The company consists of five main departments.

The marketing department is made up of three units.
The sales department is divided into two sections.

Other verbs frequently used to describe company organization include:

to be in charge of
to support or to be supported by
to be accountable to
to be responsible for
to assist or to be assisted by

e.g. The marketing department is in charge of the sales force.

The marketing department is responsible for advertising, sales promotions and
market research.
The five department heads are accountable to the Managing Director.

Assignment 2. Now write a description of either the organization chart above, or

a company you know, in about 100-150 words.

Part 3

Competition and communication

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Assignment 1. Jared Diamond is the author of Guns, Germs, and Steel: A
Short History of Everybody for the Last 13,000 Years, in which he investigates
why human history evolved differently on different continents. Here is a short
extract from a talk by Professor Diamond called 'How to get rich', in which,
drawing on the history of human societies, he makes a suggestion concerning
the best way to organize a business.

Jared Diamond
I've received a lot of correspondence from economists and business people,
who pointed out to me possible parallels between the histories of entire human
societies and histories of smaller groups. This correspondence from economists
and business people has to do with the following big question: what is the best
way to organize human groups and human organizations and businesses so as to
maximize productivity, creativity, innovation, and wealth? Should your
collection of people be organized into a single group, or broken off into a
number of groups, or broken off into a lot of groups? Should you maintain open
communication between your groups, or erect walls between them, with groups
working more secretly?
How can you account for the fact that Microsoft has been so successful
recently, and that IBM, which was formerly successful, fell behind but then
drastically changed its organization over the last four years and improved its
success? How can we explain the different successes of what we
call different industrial belts? When I was a boy growing up in Boston, Route
128, the industrial belt around Boston, led the industrial world in scientific
creativity and imagination. But Route 128 has fallen behind, and now Silicon
Valley is the centre of innovation. And the relations of businesses to each other
in Silicon Valley and Route 128 are very different, possibly resulting in those
different outcomes.
I've spent a lot of time talking with people from Silicon Valley and some
from Route 128, and they tell me that the corporate ethos in these two
industrial belts is quite different. Silicon Valley consists of lots of companies
that are fiercely competitive with each other, but nevertheless there's a lot of
collaboration, and despite the competition there is a free flow of ideas and a
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free flow of people and a free flow of information between these companies
that compete with each other. In contrast, I'm told that the businesses of Route
128 are much more secretive, and insulated from each other.
Or again, what about the contrast between Microsoft and IBM? Microsoft has
lots of units, with free communication between units, and each of those units may
have five to ten people working in them, but the units are not micro-managed,
they are allowed a great deal of freedom in pursuing their own ideas. That
unusual organization at Microsoft, broken up into a lot of semi-independent
units competing within the same company, contrasts with the organization at
IBM, which until four years ago had much more insulated groups. A month ago, I
met someone who is on the board of directors of IBM, and that person told me,
what you say about IBM was quite true until four years ago: IBM did have this
secretive organization which resulted in IBM's loss of competitive ability, but then
IBM acquired a new CEO who changed things drastically, and IBM now has a
more Microsoft-like organization, and you can see it, I'm told, in the improvement
in IBM's innovativeness.
So what this suggests is that we can extract from human history a couple of
principles. First, the principle that really isolated groups are at a disadvantage,
because most groups get most of their ideas and innovations from the outside.
Second, I also derive the principle of intermediate fragmentation: you don't
want excessive unity and you don't want excessive fragmentation; instead, you
want your human society or business to be broken up into a number of groups
which compete with each other but which also maintain relatively free
communication with each other. And those I see as the overall principles of
how to organize a business and get rich.

Assignment 2. Answer the questions:

Which of these do the part-sentences 1-8 refer to?

A Route 128 (the industrial belt around Boston, Massachusetts)

B Silicon Valley (the high-tech companies in the area between San Francisco
and San Jose, California)
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C IBM
D Microsoft

1 has lots of companies that are secretive, and don't communicate or

collaborate with each other
2 has lots of companies that compete with each other but communicate
ideas and information
3 has always had lots of semi-independent units competing within the same
company, while communicating with each other
4 is organized in an unusual but very effective way
5 is currently the centre of innovation
6 used to have insulated groups that did not communicate with each other
7 used to lead the industrial world in scientific creativity and imagination
8 was very successful, then less successful, and is now innovative again
because it changed the way it was organized

Assignment 3. Match up the words on the left with the definitions on the right:

1 industrial belt A a company's ways of working and thinking

2 wealth B alone, placed in a position away from others
3 productivity C an area with lots of industrial companies, around
the edge of a city
4 corporate ethos D breaking something up into pieces
[Link] E the amount of output produced (in a certain
period, using a certain number of inputs
6 insulated or isolated F the products of economic activity
7 fragmentation G working together and sharing ideas

Assignment 4. Working in pairs, rearrange the following part-sentences to

make up a short paragraph summarizing Diamond's ideas about the best form
of business organization.

a and regularly engage staff who have worked for your competitors,
b are at a disadvantage,
c because most groups of people get
d but also communicate with each other quite freely,
e creativity, innovation, and wealth,
f into a number of groups which compete
g Isolated companies or groups
h most of their ideas and innovations from the outside,
i So in order to maximize productivity,
j You should also exchange ideas and information with other companies,
k you should break up your business

Part 4

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Big and small companies

Assignment 1. Do you, or would you, prefer to work for a big or a small

company or organization? Why? What are the advantages of each?
Read the following statements, and decide whether they are about the advantages
of working in a big or small company.

1
you have problems with your colleagues you can always change departments.
2
he atmosphere is friendlier and you know everyone.
3
ou are often responsible for a variety of different tasks.
4
ou can actually see the result of your contribution to the company.
5
ou can be proud of working for a company with a national or international
reputation.
6
ou can become more specialized in your work.
7
ou can deal with problems face-to-face.
8
ou have a better possibility of realizing your potential.
9
ou have more independence, and you don't always have to wait for permission
from a superior.
10
ou may be able to go and work in a foreign subsidiary.
11
ou often get greater freedom, flexibility and openness to change.
12
ou'll probably get a slightly higher salary.
13
ou're unlikely to be fired in a sudden reorganization or downsizing.
14
our company will be in a better position in an economic downturn or recession.

Assignment 2. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:

[Link] be responsible to
2. to report to
[Link] structure
4. line structure
5. matrix structure
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6 staff position
7. at each successive level
8. immediate subordinates
9. Assistant to the Marketing Manager
10. Assistant Marketing Manager
11. to be credited with
12. personnel (human resources) department
13. permanent battles
14. incompatible goals
15. to separate functions
16. engineering department
17. overlap
18. determined transfer prices
19. to simulate decentralization
20. to keep authority at lower levels
21. relational problems

Unit 5 Company Law

Types of Business

Assignment 1. Complete the text using the words in the box:

bankruptcy financial creditors issue liability

corporations partnership registered shares sole trader

losses premises capital prospectus files

Types of Business

The simplest form of business is the individual proprietorship or (1)…..: for

example, a shop (US = store) or a taxi owned by a single person. If several
individuals wish to go into business together they can form a (2) …….;
partners generally contribute equal capital, have equal authority in
management, and share profits or (3) ……. . In many countries, lawyers,
doctors and accountants are not allowed to form companies, but only
partnerships with unlimited (4) ……. for debts - which should make them act
responsibly.
But a partnership is not a legal entity separate from its owners; like sole
traders, partners have unlimited liability: in the case of (5) ……., a partner

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with a personal fortune can lose it all. Consequently, the majority of
businesses are limited companies (US = (6)........, in which investors are only
liable for the amount of capital they have invested. If a limited company goes
bankrupt, its assets are sold (liquidated) to pay the debts; if the assets do not
cover the debts, they remain unpaid (i.e. (7) …..do not get their money
back.)
In Britain, most smaller enterprises are private limited companies
which cannot offer (8) …… to the public; their owners can only raise
capital from friends or from banks and other venture capital institutions. A
successful, growing British business can apply to the Stock Exchange to
become a public limited company; if accepted, it can publish a (9) ……. and
offer its shares for sale on the open stock market. In America, there is no
legal distinction between private and public limited corporations, but the
equivalent of a public limited company is one (10) …… by the Securities and
Exchange Commission.

FOUNDING A COMPANY

Founders of companies have to write a Memorandum of Association (in the

US, a Certificate of Incorporation), which states the company's name,
purpose, registered office or premises and authorized share (11) ….. .
(12)................ (always with an 's' at the end) — is the technical term for
the place in which a company does its business: an office, a shop, a
workshop, a factory, a warehouse, etc. Authorised share capital means the
maximum amount of a particular type of share the company can (13) ……. .
Founders also write Articles of Association (US = Bylaws), which set out
the rights and duties of directors and different classes of shareholders.
Companies' memoranda and articles of association, and annual (14) …..
statements are sent to the registrar of companies, where they may be
inspected by the public. (A company that (15) ….. its financial statements
late is almost certainly in trouble.) In Britain, founders can buy a ready-
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 made "off-the-shelf company from an agent, that is, a company formed and
held specifically for later resale; the buyer then changes the name,
memorandum, and so on.

Assignment 2. Answer the questions:

1. What is the simplest form of business?

2. What rights and duties do partners in a partnership usually have?
3. What risks can partners in a partnership run in the case of bankruptcy?
4. What happens if a limited company goes bankrupt?
5. Where do private limited companies raise their capital from?
6. How can a successful, growing British business become a public limited
company?
7. Is there any legal distinction between private and public limited
corporations in America?
8. What do founders of companies have to write?
9. What service is provided in Great Britain for those who want to found a
company?

Assignment 3. Match the following terms to the definitions given below:

partnership, unlimited liability, proprietorship (sole trader), limited

company

1. an unincorporated business with one owner who pays personal income tax
on profits from the business.
2. A type of unincorporated business organization in which multiple individuals,
called general partners, manage the business and are equally liable for its
debts.
3. The responsibility of one or more owners of a business for the total amount of
debt and other liabilities that the business accrues, regardless of how much
the owner(s) have personally invested.
4. a type of business ownership combining several features of corporation and
partnership structures.

Now read the texts and check whether you have chosen the right answer.
Make a list of advantages and disadvantages of these types of business:

A sole proprietorship, also known as the sole trader or simply a

proprietorship, is a type of business entity that is owned and run by one
individual and in which there is no legal distinction between the owner and
the business. The owner receives all profits (subject to taxation specific to the
business) and has unlimited responsibility for all losses and debts. Every asset
of the business is owned by the proprietor and all debts of the business are the
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proprietor's. This means that the owner has no less liability than if they were
acting as an individual instead of as a business. A sole proprietor may use a
trade name or business name other than his or her legal name.
The benefit of the sole proprietorship is the tax advantage. The disadvantage
of a sole proprietorship is obtaining capital funding, specifically through
established channels, such as equity (selling shares) and obtaining bank loans
or lines of credit. As a business grows it often transitions to a limited
liability company (LLC) or corporation.

A partnership is a type of unincorporated business organization in which

multiple individuals, called general partners, manage the business and are
equally liable for its debts; other individuals called limited partners may
invest but not be directly involved in management and are liable only to the
extent of their investments. Unlike a Limited Liability Company or a
corporation, in a partnership each partner shares equal responsibility for the
company's profits and losses, and its debts and liabilities. The partnership
itself does not pay income taxes, but each partner has to report their share of
business profits or losses on their individual tax return. Estimated tax
payments are also necessary for each of the partners for the year in progress.

An unlimited liability is a type of business where owners share joint

responsibility for the entire amount of debt and other liabilities amassed by
the business. Unlimited liability exists regardless of the amount of investment
each owner has personally made. If the business is unable to meet any
financial obligations or settle any outstanding liabilities, the owner's personal
assets can be seized to satisfy the debts. This is in contrast to a limited
liability structure where owners' losses cannot exceed the total amount
invested in the business. Unlimited liability is found in general partnerships
and sole proprietorships.

A Limited Liability Company (LLC) is a popular business structure

because, similar to a corporation, owners have limited personal liability for
the debts and actions of the LLC. Other features of LLCs are more like a
partnership, providing management flexibility and the benefit of pass-
through taxation. Owners of an LLC are called members. Since most states
do not restrict ownership, members may include individuals, corporations,
other LLCs and foreign entities. There is no maximum number of members.
Most states also permit “single member” LLCs, those having only one owner.
A few types of businesses generally cannot be LLCs, such as banks and
insurance companies.

Assignment 4. Translate the following words and use them in the sentences of
your own.

Equity business, entity, tax payments, tax return, income taxes, amass

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Assignment 5. Study the Active vocabulary and give the Ukrainian
equivalents of the words and word combinations:

1. individual proprietorship (sole trader)

2. to go into business
3. partnership
4. to share profits and losses
5. partnership with unlimited liability
6. limited company (corporation)
7. legal entity
8. personal fortune
9. to be liable for smth
10. assets
11. to cover the debts
12. private limited company
13. public limited company
14. shares
15. to raise capital from smb
16. venture capital institution
17. the Stock Exchange
18. prospectus
19. Securities and Exchange Commission
20. Memorandum of Association (Certificate of Incorporation)
21. authorized share capital
22. premises
23. to issue shares
24. Articles of Association (Bylaws)
25. to file financial statements
26. ready-made “off-the-shelf” company
27. shareholders
28. bankruptcy
29. legal distinction

Assignment 6. Translate the sentences:

1. Компанія має подавати щорічні фінансові звіти до регістру компаній,

щоб у неї не виникло ніяких проблем.
2. Якщо компанія збанкрутіла, її активи продаються, щоб погасити
борги.
3. Кожне підприємство має назву, ціль, офіс або приміщення та
дозволений для випуску капітал.
4. В підприємстві з обмеженою відповідальністю, підприємець
відповідає тільки за ту частину капіталу, яку він інвестував.
5.Нацбанк України має негайно погасити свої борги перед великими
приватними компаніями.

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6. Наразі фондова біржа Великобританії є ареною протистояння
найрозвинутіших ТНК світу.
7. Колегія юристів стверджує, що між цими договорами немає вагомої
юридичної відмінності.
8. Партнери вклали однакові обсяги капіталу, тому претендують на
однаковий прибуток.
9. Ніхто крім вас не оплатить борги у разі банкрутства фірми.
10. Останнім часом «компанії під ключ» стали хорошим варіантом для
початку свого бізнесу.
11. Відкрита фондова біржа дозволяє її учасникам мати доступ до
інформації про усі акції, що є в продажі.

Mixed Bag

Translate the sentences:

1) Обробна промисловість – дуже важлива складова економіки Китаю,

обсяги виготовленої продукції зростають з кожним роком.
2) Швидкий розвиток та зростання агрохолдингів в Україні означає, що
все більше людей заробляють на життя в агропромисловому комплексі.
3) Якщо ви збираєтесь відкрити інтернет магазин, вам потрібно
забезпечити стабільні поставки товарів.
4) Зростання кількості безробітних в країні свідчить про проблеми з
економікою.
5) Важка промисловість є основою української економіки, закладена ще
в радянські часи.
6) На складі зберігалася величезна кількість різноманітних товарів,
призначених для продажу в супермаркеті.
7) Вибух на Чорнобильскій електростанції став величезною трагедією
для українського народу, залишивши по собі жахливі наслідки.
8) Розробка нових технологій потребує колосальних зусиль та
фінансування.
9) В час пік в метро жахлива штовханина, адже всі люди поспішають на
роботу.
10) Рада директорів назначає та слідкує за роботою топ менеджерів, від
дій яких залежить майбутнє компанії.
11) Однією з основних задач будь-якого менеджера є правильне
встановлення цілей компанії, тобто напряму, в якому вона буде
рухатися.
12) Він займає високу посаду у компанії і тому у нього велика кількість
підлеглих. Він несе відповідальність за якість їхньої роботи.
13) За блискуче виконану роботу, що призвела до збільшення продаж,
його було підвищено до начальника відділу.
14) Рівень цін на акції цієї компанії неухильно спадатиме, що
спричинено невдалими діями топ менеджера.

PAGE \* MERGEFORMAT 21
15) Ринок послуг змінюється в залежності від зростаючих потреб
людства.
16) Чим складніший продукт, тим вищі затрати на робочу силу для його
виготовлення.
17) Нажаль, сьогодні в Україні виготовляються тільки
низькотехнологічні продукти.
18) Я дуже сумніваюся що ця компанія вибереться з фінансових
труднощів. Ситуація вже давно вийшла з-під контролю.
19) Безперечно, він добився успіху в житті. Його підприємство
процвітає, в нього чудова сім’я та надійні друзі.
20) Якщо ви не сплатите борги до кінця місяця, все ваше майно буде
конфісковано та продано на аукціоні.
21) Товариства з обмеженою відповідальністю – найбільш
розповсюджена форма юридичної реєстрації підприємства.
22) Через невдало обрану стратегію продажу товарів компанія ледь не
збанкрутіла.
23) До активів компанії належать багато патентів, інноваційних розробок
та високотехнологічне обладнання.
24) Щоденне управління великим магазином – справа нелегка, і вона під
силу тільки деяким людям.
25) Якщо до робітників не ставитимуться з повагою, вони не будуть
достатньо змотивовані робити свою роботу добре.
26) Майк – мій безпосередній керівник. Зважаючи на нещодавні події,
можна зробити висновок що він талановитий менеджер.
27) Товар, який ми виготовляємо – лідер на ринку, він випереджує
конкурентів по всім показникам.
28) Щорічна фінансова звітність, згідно з діючим законодавством, є
обов’язковою для всіх підприємств.
29) Сьогодні ми можемо прочитати у газетах або ж побачити по
телевізору, що найбільша соціальна мережа «The Facebook» переживає
неминучий спад вартості своїх акцій.
30) Дев’ятнадцяте століття добре відоме своїм проривом в області науки
та техніки; багато нових виробів було винайдено для служіння людству.
31) Вихід нового сенсорного телефона під назвою IPhone у 2007 році
приніс компанії Apple рекордний прибуток на ринку IT технологій.
32) Для того, щоб бути конкурентоспроможним на ринку робочої сили
кожен студент, котрий щойно закінчив університет має бути
наполегливим, готовим працювати по 24 години на добу та бути високо
кваліфікованим.
33) На сьогоднішній день корпорація Microsoft є лідером у написанні
програмного забезпечення.
34) У кожній компанії мають бути стажери, яких потрібно тренувати як
наступне покоління робітників, які б підтримували засади та принципи
компанії.
35) Мережа захисту – це спеціальна схема, котра виключає можливість
здійснення помилок на будь-якому рівні управління.
PAGE \* MERGEFORMAT 21
36) Природжені менеджери мають вирізнятися від звичайного робітника
деякими професіональними рисами, такими як схильність до
«відповідальних» інновацій та можливістю прогнозувати ризики.
37) Боксит – це алюмінієва руда, яка на сьогодні вважається основним
джерелом алюмінію.

Unit 6. Labour relations

Part 1. Labour unions

Assignment 1. Answer the following questions:

1. What are labour unions or trade unions?

2. What do they do?
3. What can they do when dissatisfied?
4. Who can the government negotiate with if the workers are non-unionized?

Assignment 2. Match up the words with the definitions given below.

1 collective bargaining
2 strike
3 a go-slow (GB) or slowdown (US)
4 working-to-rule
5 industrial action
6 to picket

A a general term for strikes, go-slows, work-to-rules, and so on

B a deliberate reduction in the rate of production, as a protest
C a stoppage of work, as a protest against working conditions, low pay, and
so on
D negotiations between unions and employers about their members’ wages
and working conditions
E to protest outside a factory or other workplace, and try to persuade workers
and delivery drivers not to enter
F deliberately obeying every regulation in an organization, which severely
disrupts normal operations

Assignment 3. Read the interview with Denis MacShane, a British Member

of Parliament for the Labour Party who previously worked for ten years for
the International Metal Workers Union, talking about trade unions.

Interviewer Denis MacShane, what would you say are the functions of trade
unions, or labour unions?
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Denis MacShane Work is changing all the time, but at the heart of work lies
the worker, and as firms get bigger they require many workers, they have to
be managed, and unions are a necessary voice for the interests of those
workers. It is curious to see that in the new countries that have been in the
headlines in recent years, countries like South Korea, or Poland, or South
Africa, trade unions have played an enormous dynamic political and
economic role. Clearly some of the old attitudes and structures of trade unions
in Europe or the United States have became somewhat out of date and they
have to be reinvented, but in the end, as long as employees have needs that
need to be represented, then I think they’ll need trade unions, and a sensible
government, and sensible employers, that want effective social peace, and
want also a team-working and dynamic economy, should be encouraging
trade unions. The form of trade unions is changing, perhaps the old class war
attitude of trade unions is out of date, but again it is interesting to see that
some of the most successful economies - I’m thinking of Germany, I’m
thinking of Japan - there is a strong trade union presence, it’s recognized by
employers, it is accepted as a partner by government.

English for Business Studies Second Edition © Cambridge University Press

2002

1) Summarize briefly what he says about:

a) the role or function of unions
b) the attitude governments and companies should have in relation to unions
2) What do you think MacShane means by the out-of-date class war attitude
of
some unions?
3) Do you agree with MacShane’s view of the necessity and usefulness of
unions?
4) Now complete the following sentences with these words:

dynamic, employees, employers, partner, peace, represented, role, sensible,

team-working, voice

1. Unions are a necessary ......... for the interests of workers.

2. In countries like South Korea, or Poland, or South Africa, trade unions
have played an enormous ......political and economic .......... .
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3. As long as ......... have needs that need to be ......... they’ll need trade
unions.
4. .......... employers, that want effective social ........ and want also a .........and
dynamic economy, should be encouraging trade unions.
5. In some of the most successful economies, a strong trade union presence is
recognized by .......... and accepted as a ........ by government.

Assignment 4. Read the following extract from the American author Bill
Bryson’s book about Britain, Notes From a Small Island, about the newspaper
industry in the 1980s, and answer the questions.

Fleet Street, near the City, London’s financial district, was where British
national newspapers had their offices and printing works until the 1980s,
when most of them moved to new premises.

To say that Fleet Street in the early 1980s was out of control barely hints at
the scale of matters. The National Graphical Association, the printers’ union,
decided how many people were needed on each paper (hundreds and
hundreds) and how many were to be laid off during a recession (none), and
billed the management accordingly. Managements didn’t have the power to
hire and fire their own print workers, indeed generally didn’t know how many
print workers they employed. I have before me a headline from December
1985 saying ‘Auditors find 300 extra printing staff at Telegraph.’ That is to
say, the Telegraph was paying salaries to 300 people who didn’t actually
work there. On top of plump salaries, printers received special bonus
payments for handling type of irregular sizes, for dealing with heavily edited
copy, for setting words in a language other than English, for the white space
at the end of lines. If work was done out of house - for instance, advertising
copy that was set outside the building - they were compensated for not doing
it. In consequence, many senior printers, with skills no more advanced than
you would expect to find in any back-street print shop, enjoyed incomes in the
top 2 per cent of British earnings. It was crazy.

Now answer the following questions:

1) What does this extract suggest about newspaper managements and the
printers' trade union at the time?
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2) What does the first sentence - ‘to say that Fleet Street ... was out of control
barely hints at the scale of matters’ - mean?
3) Bryson makes one statement that probably isn’t true, i.e. is a deliberate
exaggeration. Which do you think it is?
4) Do you know what happened to the printers at British newspapers soon
after the period Bryson is writing about?

Assignment 5. Find the words from the text that correspond the following
definitions.

1) Additional compensation given to an employee above his/her normal wage.

It can be used as a reward for achieving specific goals set by the company, or
for dedication to the company.
2) Elimination of jobs by a company regardless of how good the employees'
performance.
3) A significant decline in activity across the economy, lasting longer than a
few months. It is visible in industrial production, employment, real income
and wholesale-retail trade.
4) A house or building, together with its land and outbuildings, occupied by a
business or considered in an official context.
5) A person who officially examines the accounts of a company.
6) A fixed regular payment made every month to employees doing
professional or office work.

Assignment 6. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:
1 collective bargaining
2 strike
3 a go-slow (GB) or slowdown (US)
4 working-to-rule
5 industrial action
6 to picket
7. to disrupt
8. to lay off
9. bonus payments
10. recession
11. team-working
12. premises
13. reduction in the rate of production
14. working conditions
15. plump salaries
16. wages
Part 2. Industrial relations

Assignment 1. Answer the following questions:

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1) Are labour relations good or bad in our country? Why?
2) Do you consider that the unions are too strong or not strong enough in our
country?

Assignment 2. Read the text and then answer the following questions.
According to the text:

1) What are frequent causes of bad labour relations?

2) What have the consequences of labour-market deregulation been?
3) Why can these consequences be a problem for management?

WHO NEEDS UNIONS?

Manual and service industry workers are often organized in labour unions,
which attempt to ensure fair wages, reasonable working hours and safe
working conditions for their members. British unions are known as trade
unions because, as in Germany, they are largely organized according to trade
or skill: there is an engineers' union, an electricians'; union, a train-drivers'
union, and so on. In other countries, including France and Italy, unions are
largely political: workers in different industries join unions with a particular
political position.
Industrial relations tend to be better in countries, industries and companies
where communications are good, i.e. where management consults workers on
matters that will concern them, where neither side treats the other as an
adversary, and when unions do not insist upon the preservation of
completely uneconomic jobs and working practices. Although some
employers and managers (and political parties) oppose the very existence of
unions - even though, like doctors, lawyers, accountants, and so on, they
might themselves belong to a professional association with similar basic aims
- many management theorists stress the necessity of unions. In the 1970s,
Peter Drucker wrote that 'Management is and has to be a power. Any power
needs restraint and control - or else it becomes tyranny. The union serves an
essential function in industrial society.' Yet one of the chief objectives of
right-wing governments in the 1980s (e.g. in Britain and the USA) was to

PAGE \* MERGEFORMAT 21
diminish the power of trade unions, and to deregulate labour markets in
accordance with the ideal of free markets.
As a result of deregulation, working conditions in many industries in many
countries have worsened, leading to the creation of a great many casual, part-
time, unskilled jobs done by non-unionized workers. France, for example,
has the lowest number of workers in trade unions in the industrialized world.
The unions now represent less than 10°/o of the French work force, and most
of those are in the public sector. The vast majority of French workers seem to
have rejected the confrontational politics of the main unions, notably the
communist-controlled CGT. Consequently, when the largely non-unionized
French lorry drivers blocked all the motorways in the 1990s, striking over the
introduction of a new driver's licence with a penalty-point system (and over
their working conditions in general), the French government found no one to
negotiate with.
In fact, a number of politicians and business leaders are beginning to regret
the weakness of unions. Some managers, including Antoine Riboud, the
former head of the huge Danone food conglomerate, actively encourage
unionization because they insist that a big company needs someone to
represent and articulate the needs of the employees and act as a social
partner to the employer. But there is clearly a problem if workers believe that
the unions are incapable of doing this, and choose not to join them.

* Peter Drucker: An Introductory View of Management

Assignment 3. Find the words in the text which mean the following.
1) people who work with their hands
2) a union for workers with a particular type of job
3) to ask someone’s opinion before making a decision
4) an opponent or enemy
5) too expensive, wasteful, loss-making
6) unlimited and unfairly used power
7) ending or relaxing restrictive laws
8) areas of the economy run by the local or national government
9) hostile, almost aggressive, seeking conflicts
10) a large corporation, made up of a group of companies
PAGE \* MERGEFORMAT 21
Assignment 4. Answer the following questions:

1) Peter Drucker says ‘Management is and has to be a power.’ What does this
mean?
2) In your opinion, should unions be consulted before management makes
decisions about the following?
a) manufacturing new products or offering new services
b) opening new factories, shops, and so on
c) closing existing factories, shops, and so on
d) changing working hours
e) hiring new staff
3) Should unions be represented on a company’s board of directors, as happens
in some countries?

Assignment 5. Study the Active vocabulary and give the Ukrainian

equivalents of the words and word combinations:
1) manual workers
2)service industry workers
3) to ensure fare wages
4) reasonable working hours
5) trade unions
6) industrial relations
7) adversary
8) uneconomic job
9) accountant
10) casual job
11) part-time job
12) unskilled job
13) non-unionized workers
14) the public sector
15) penalty-point system
16) to represent and articulate the needs of the employees

Assignment 6. Translate the sentences into Ukrainian paying special attention

to the words given in bold:

1) "White collar" is a working class that is known for earning high average
salaries and not performing manual labor at their jobs.
2) Since 1989, large companies in the United States have been required to let
employees know 60 days in advance if there is going to be a massive layoff.
3) The global recession of 2008-2009 brought a great amount of attention to
the risky investment strategies used by many large financial institutions.
4) In the United States, collective bargaining takes place between labor
union leaders and the management of the company that employs that union's
workers.
PAGE \* MERGEFORMAT 21
5) A go-slow may be used as either a prelude or an alternative to a strike, as
it is seen as less disruptive as well as less risky and costly for workers and
their union.
6) Collective bargaining consists of the process of negotiation between
representatives of a union and employers in respect of the terms and
conditions of employment of employees, such as wages, hours of work,
working conditions, grievance-procedures, and about the rights
and responsibilities of trade unions.
7) If there's no smoking on the premises of a high school, you can't even light
up in the parking lot.
8) An individual that is working part-time at an office job instead of full-time
is considered underemployed because they are willing to provide more
employment, which can increase the overall output.
9) Casual employees are usually employed by the hour or by the day. They
usually don’t get paid sick leave or annual leave. To make up for this they
get extra pay called a casual loading.
10) A segment of the work force associated with a low skill level or a limited
economic value for the work performed is unskilled labor. Unskilled labor is
generally characterized by low education levels and small wages. Work that
requires no specific education or experience is often available to workers who
fall into the unskilled labor force.
11) Employers and workers seem to approach employment from vastly
different perspectives. So how can the two sides reach any sort of agreement?
The answer lies in unions. Unions have played a role in the worker-employer
dialogue for centuries, but in the last few decades many aspects of the
business environment have changed. With this in mind, it's important to
understand how unions fit into the current business environment, and what
role unions play in the modern economy.

Assignment 7. Read and discuss the text about unions:

Unions are organizations that negotiate with corporations, businesses and

other organizations on behalf of union members. There are trade unions,
which represent workers who do a particular type of job, and industrial
unions, which represent workers in a particular industry.

Since the Industrial Revolution, unions have often been credited with securing
improvements in working conditions and wages. Many unions were formed in
manufacturing and resource companies, companies operating in steel mills,
textile factories and mines. Over time, however, unions have spread into other
industries. Unions are often associated with the "old economy": companies

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that operate in heavily regulated environments. Today, a large portion of
membership is found in transportation, utilities and government.

The number of union members and the depth at which unions penetrate the
economy varies from country to country. Some governments aggressively
block or regulate a union's formation and others have focused their economies
in industries where unions have not traditionally participated.

Industry deregulation, increased competition and labor mobility have made it

more difficult for traditional unions to operate. In recent decades, unions have
experienced limited growth due to a shift from "old economy" industries,
which often involved manufacturing and large companies, to smaller and
medium-sized companies outside of manufacturing. In the recent past,
potential union members have spread into a larger set of companies. This
makes collective bargaining a more complicated task, as union leaders must
work with a larger set of managers and often have a harder time organizing
employees.

The evolution of the modern worker has also changed the role of unions. The
traditional focus of union leaders has been representing workers when
negotiating with managers, but when developed economies shift away from a
reliance on manufacturing, the line between manager and worker becomes
blurred. In addition, automation, computers and increased worker
productivity results in fewer workers being needed to do the same job.

The power of labor unions rests in their two main tools of influence:
restricting labor supply and increasing labor demand. Some economists
compare them to cartels. Through collective bargaining, unions negotiate the
wages that employers will pay. Unions ask for a higher wage than
the equilibrium wage (found at the intersect of the labor supply and labor
demand curves), but this can lower the hours demanded by employers. Since
PAGE \* MERGEFORMAT 21
 a higher wage rate equates to less work per dollar, unions often face problems
when negotiating higher wages and instead will often focus on increasing the
demand for labor. Unions can use several different techniques to increase the
demand for labor, and thus, wages. Unions can, and do, use the following
techniques:

 Push for minimum wage increases. Minimum wage increases the labor costs
for employers using low-skilled workers. This decreases the gap between the
wage rate of low-skilled and high-skilled workers; high-skilled workers are
more likely to be represented by a union.
 Increase the marginal productivity of its workers. This is often done through
training.
 Support restrictions on imported goods through quotas and tariffs. This
increases demand for domestic production and, therefore, domestic labor.
 Lobbying for stricter immigration rules. This limits growth in the labor
supply, especially of low-skilled workers from abroad. Similar to the effect of
increases in the minimum wage, a limitation in the supply of low-skilled
workers pushes up their wages. This makes high-skilled laborers more
attractive.

Unions have a unique legal position and in some sense, they operate like
a monopoly as they are immune to antitrust laws. Because unions control, or
can exert a good deal of influence on the labor supply for a particular
company or industry, unions can restrict non-union workers from depressing
the wage rate. They are able to do this because legal guidelines provide a
certain level of protection to union activities.

When unions want to increase union member wages or request

other concessions from employers, they can do so through collective
bargaining. Collective bargaining is a process in which workers (through a
union) and employers meet to discuss the employment environment. Unions
PAGE \* MERGEFORMAT 21
will present their argument for a particular issue, and employers must decide
whether to concede to the workers' demands or to present
counterarguments. The term "bargaining" may be misleading, as it brings to
mind two people haggling at a flea market. In reality, the goal of the union
in collective bargaining is to improve the status of the worker while still
keeping the employer in business. The bargaining relationship is continuous,
rather than just a one-time affair.

If unions are unable to negotiate, or are not satisfied with the outcomes of
collective bargaining, they may initiate a work stoppage or strike.
Threatening a strike can be as advantageous as actually striking, provided
that the possibility of a strike is deemed feasible by employers. The
effectiveness of an actual strike depends on whether the work stoppage can
actually force employers to concede to demands. This is not always the case,
as seen in 1984 when the National Union of Mineworkers, a trade union based
in the United Kingdom, ordered a strike that, after a year, failed to result in
concessions and was called off.

Whether unions positively or negatively affect the labor market depends on

whom you ask. Unions say that they help increase the wage rate, improve
working conditions and create incentives for employees to learn continued job
training. Union wages were 21% percent higher than non-union wages as of
2002, though this figure varies according to industry.
Critics counter the unions' claims by pointing to changes in productivity and a
competitive labor market as some of the primary reasons behind wage
adjustments.

If the labor supply increases faster than labor demand, there will be a glut of
available employees, which can depress wages (according to the law of
supply and demand). Unions may be able to prevent employers from
eliminating jobs through the threat of a walkout or strike, which will shut
PAGE \* MERGEFORMAT 21
down production, but this technique does not necessarily work. Labor, like
any other factor of production, is a cost that employers factor in when
producing goods and services. If employers pay higher wages than their
competitors, they will wind up with higher-priced products, which are less
likely to be purchased by consumers.

Increases in union wages can come at the expense of non-unionized workers,

who lack the same level of representation with management. Once a union is
ratified by the government, it is considered a representative of the workers,
regardless of whether all workers are actually part of the union. Additionally,
as a condition of employment, unions are able to deduct union dues from
employee paychecks without prior consent. Whether unions were a
primary cause of a decline in labor demand by "old economy" industries is
up for debate. While unions did force wage rates upward compared to non-
union members, this did not necessarily force those industries to employ
fewer workers. In the United States, "old economy" industries have declined
for a number of years as the economy shifts away from heavy industries.

Unions have undoubtedly left their mark on the economy, and continue to be
significant forces that shape the business and political environments. They
exist in a wide variety of industries, from heavy manufacturing to the
government, and assist workers in obtaining better wages and working
conditions.

Assignment 8. Now answer the following questions:

1) What are unions?

2) What do unions do?
3) Due to what factor have unions experienced limited growth in recent
decades?
4) What makes collective bargaining a more complicated task?
5) How has the evolution of the modern worker changed the role of unions?
6) How do unions affect the labor environment?
7) What techniques and tools of influence do unions use?
8) What can unions do during negotiations?
PAGE \* MERGEFORMAT 21
9) Do legal guidelines provide protection to union activities?
10) Do unions work?
11) What happens if the labour supply increases faster than labour demands?

Assignment 9. Match up the words on the left with the definition on the right
and translate them:

1. equilibrium wage a. The act of attempting

to influence business and government leaders to create l
egislation or conduct an activity that will help a
particular organization.
2. marginal
productivity b. Means of restricting
the quantity of imports through import licenses, either
of a certain item or from a certain country.

[Link] c. Industrial action in which employees leave

the employer's premises and refuse to return.
[Link] quota d. any wage in which there is neither an excessive
demand or an excessive supply of workers within the
labor market. This wage would be decided by the needs
of the market.

5. import tariff e. Change in output that results from changing

the labor input by one unit, all other factors remaining
constant

6. walkout f. Printed schedule of duties or taxes levied on goods as

they enter a country. It divides all goods into major and
sub-groups for their correct and easy identification
for charging customs duty,
and recording the trade data for statistical purposes.

Assignment 10. Read the text:

Trade Unions And Collective Bargaining

What Is Collective Bargaining?

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It is the process by which representatives of management and the unions meet
and negotiate over wages, hours and other terms and conditions of
employment in good faith. It is a give and take process which aims to arrive at
a conclusion beneficial to both the parties.
One of the most important aspects of collective bargaining is that it is a never
ending process. It does not finish after an agreement has been reached. It
continues for the life of the agreement and beyond. “Good faith bargaining” is
at the center of effective labor-management relations. It means that no party
should compel another to agree to a proposal. Nor does it require any of the
parties to make any specific concessions.
The right to bargain collectively is recognized through international human
rights conventions. Article 23 of the Universal Declaration of Human
Rights recognizes the ability to join trade unions as a human right.

Collective Bargaining Issues:

Management rights and union security are the major issues related to
collective bargaining. Management rights: Almost all labor contracts include
management rights. These are the rights which are reserved by the employer
so that he/she can manage, direct and control its business. Union security:
Another major concern is that of negotiating union security provisions. These
are clauses in contracts to help the union in obtaining and retaining workers.

Importance Of Collective Bargaining:

To Employees:
 It helps in developing a
sense of responsibility
amongst employees.
 It helps ensure adequate
wages and working conditions
for employees.
 It improves the morale
and productivity of employees.
 It helps in quick
settlement of grievances.

ToEmployers:
PAGE \* MERGEFORMAT 21
 It is relatively easier for
the management to resolve
disputes at the bargaining level
instead of taking up complaints
individually.
 It improves the morale
of employees and thereby
reduces the cost of labor
turnover.
 It improves workers
participation in decision
making

PAGE \* MERGEFORMAT 21
ToSociety
 It promotes peace in the country. It results in a harmonious industrial
climate which helps in the economic and social development of the country.

Collective rather than individual bargaining has become necessary today. A

reason why collective bargaining is necessary is that workers who are
employed by a firm may not speak out in the fear of being fired. The
collectiveness of trade unions alters the way the labor market operates or
functions.
In a non-unionized setting, the firm is primarily concerned with the needs of
the marginal worker- who is usually young and marketable and may be
attracted by other firms and may ignore those who are older and less
marketable. In short, the desires of those who are unlikely to leave the
enterprise are not represented.
However, in a unionized setting, the union considers all the workers while
representing them at the bargaining table so that the desires of those who are
not likely to leave the enterprise are also represented.

Assignment 11. There are 5 stages in the unionization process. Put them in
the right order and try to guess what can be done during each stage.

 Representation Election
 Organization Campaign
 Certification
 Contract Negotiation (Collective Bargaining)
 Authorization Cards

Assignment 12. There is a common classification of collective Bargaining

issues. Possible topics of collective bargaining fall into three categories.
Match up these categories with definitions given below.

1) Mandatory
2) Permissive
3) Illegal

a) These are those collective bargaining issues that would require any of the
parties to take actions that are forbidden by law.
b) These are those collective bargaining issues that are not mandatory but
related to certain jobs.
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c) Those issues which are identified specifically by labor laws or court
decisions as subject to bargaining.

Assignment 13. It is believed that there are two faces of trade unions. Read
the following statements, and decide whether they are about Monopoly Face or
Collective voice.

1. Trade unions raise wages above competitive levels

2. Trade unions help in reducing the labor turnover rate which helps both
the employer and the employee. The employee enjoys job stability whereas
the employer does not have to bear the high cost of labor turnover.
3. Unions can have a positive effect on productivity. Unions collect
information about the preferences of all workers leading the firm to choose
the best mix of employee compensation.
4. Trade union work rules decrease productivity
5. Trade unions increase inequalities by raising the wages of highly
skilled workers
6. Trade unions’ power leads to corruption. They are more interested in
their own interests.
7. Unions’ standard rate policies ensure equality in distribution of
income between workers of the same skill set.
8. Trade unions represent the political interests of poor and disadvantaged
people.

Assignment 14. Translate following sentences into English .

1. Представники профспілки зустрілися з менеджером компанії, щоб

домовитися про розмір заробітної платні та прийнятні робочі умови.
Зрештою вони знайшли рішення, идля обох сторін.
2. Право людини долучатися до професійних спілок визнано 23
статтею Загальної декларації прав людини.
3. Ведення колективних переговорів допомагає у швидкому
вирішення скарг.
4. Страх бути звільненим часто робітникам висловлювати своє
невдоволення, и тому спілки є необхідним засобом досягнення згоди
між керівництвом та підлеглими.
5. Інтереси менш затребуваних працівників навряд чи будуть
представлені професійними спілками під час перемовин.

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6. Одною з головних цілей спілок є забезпечення чесного розподілу
доходів між працівниками різних рівнів кваліфікації.
7. Ведення переговорів у дусі доброї волі (сумлінних переговорів)
означає, що жодна сторона не примушує іншу погодитись на
пропозицію.
8. Розвиток почуття відповідальності серед робітників – головна мета
кожного обізнаного керівника.
9. Набагато легше вирішувати спірні питання на рівні колективних
переговорів, ніж приймати скарги в індивідуальному порядку.

Assignment [Link] following words and word combinations:

 representatives of management
 to negotiate over
 to arrive at a conclusion
 beneficial to both the parties
 “good faith bargaining”
 to compel
 labor-management relations
 grievance
 taking up complaints individually
 labor turnover
 to speak out
 the fear of being fired
 marketable

Assignment 16. Read about the types of unions:

Types of Trade Unions

General Unions

General unions generally represent labourers from all industries and

professions irrespective of what sector of the workforce they form part. In
other words, these unions stand for skilled and unskilled workers preforming
different jobs in different industries (cleaners, clerical staff, and transport
workers etc.). They are usually the largest and most powerful unions.
Craft Union
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These are fairly small unions for skilled workers, performing the same or
similar work in different industries such as motor mechanics, plumbing or
electrical work. Their power is based upon the scarcity of highly skilled
labour.
Membership of craft union is usually restricted to those who have completed
the recognized qualification for the craft or skill in question, normally an
apprenticeship. Being a closed union,craft union may be relatively small.
Industrial Union
Industrial unionism is a type of labour organization. It is one which, for
organizational purposes, includes all workers in a particular industry (egg,
steel, automobile, and textile) regardless of whether they are skilled or
unskilled. The union's bargaining power is based upon the number of
members.
Industrial unions also depend on changes in the economy. Some industrial
unions in areas such as sugar, oil and dock work has suffered significantly as
a result of technological changes.
As industrial unions recruit members within one industry only and which
aspires to recruit all grades of workers in that industry, both manual and non-
manual. It can therefore be considered as a form of vertical unionism.
White Collar Union
It is a union that embodies principally white-collar workers; a non-manual
workers' union which executes similar tasks in different industries (e.g.
teachers, scientists). They stand for professionals who work from an office
such as those who occupy a managerial or administrative chair.
Horizontal Union
Unions that recruit workers in similar occupational categories in whatever
industrial sector they appear are called horizontal unions; they may be
distinguished from industrial or vertical unions.
Occupational Union

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It organizes workers in a specific occupation or group of occupations which
are closed to others. Most are in the white-collar area covering groups such as
clerical and secretarial staff, local government officers etc. The term may also
relate to manual craft unions.
Open Union
It is a union with few restrictions as to which sorts of workers may join. The
big general unions are of this character, especially those unions that started
off as manual unions and then developed a section for white-collar workers.
In the 1980s, several formerly closed unions have opened themselves up to
new categories of membership in an effort to recruit new members.
Student Union
The Students Union is run by and for the students. It works in the interest of
students and regularly organizes various activities. All students are members,
the membership fee being included in the registration. Students are very
dynamic in organizing extra-curricular activities supported by the Public
Relations Office.

Assignment 17. Study the active vocabulary and give the Ukrainian
equivalents of the words and word combinations:

1) Decency
2) quote
3) decrease in number
4) indeed
5) downward trend
6) peer countries
7) trend of descent
8) decentralized and constituted
9) political actor
10) the sector smb work in
11) broader concepts
12) policy making
13) narrow sense
14) civil and social rights
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15) welfare
16) density in
17) industrial society
18) post-industrial workforce
19) demans
20) labour representatives
21) scarcity
22) apprenticeship
23) to recruit
24) clerical and secretarial staff
25) extra-curricular activities

Assignment 18. Translate the sentences into Ukrainian:

1) Trade Unionism grew as one of the most powerful socio-economic

political institutions of our time - to fill in the vacuum created by industrial
revolution in industrial society.
2) Trade union is an association either of employees or employers or of
independent workers.
3) Members can share their feelings, exchange notes and fight the
employer quite effectively whenever he goes off the track.
4) The subject which drew the major attention of the trade unions is wages
and salaries.
5) Workers who are non-unionised are more at risk of low pay.
6) In theory unions might exercise their collective bargaining power to
partially offset the purchasing power of an employer in a particular
occupation and in doing so achieve a mark-up on wages compared to those on
offer to non-union members.
7) Collective bargaining is a process between employers and employees to
reach an agreement regarding the rights and duties of people at work.
8) Collective bargaining includes not only negotiations between the
employers and unions but also includes the process of resolving labor-
management conflicts.

Assignment 19. Read the text:

WHY ARE TRADE UNIONS DECLINING

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The decline is largely due to structural changes in advanced economies. Total
manufacturing employment in America has fallen from nearly 20m in 1979 to
12m today. The kind of workers who have lost out—in particular, unskilled
men—were precisely those most likely to be in a union in the first place. And
what has sprung up to replace them crimps unions further. If you went to a
factory in the 1970s, you would have seen assembly lines of people. Such
workers were much more amenable to the idea of "class consciousness". Go
to a factory today and you might you get a few people monitoring robots and
other bits of machinery. Add to the mix globalization, which makes it harder
for unions to regulate work, the rise of a more flexible service sector, and
government policies (such as those imposed by a Conservative-led
government in Britain in the 1980s under Margaret Thatcher) and the loss of
union clout seems inevitable. More recent reforms to minimum wages and
workplace discrimination have also reduced the need to be in one.
The failure of many unions to respond to these changes has further diminished
their power. Few manage to appeal to younger workers or those who are self-
employed or work part-time. Faced with declining membership figures, some
unions have joined forces with others in an attempt to be more effective.
Others yet have tried to modernize: in Britain, for example, UNISON, the
second-largest union, now allows people to join online and has created an
app, which is popular with younger people. It has also changed the way it
markets itself to potential members: highlighting services such as free legal
advice rather than just its ability to strike. Instead of relying on “stewards” to
recruit new members, it advertises in newspapers and on the television.
However, the pace of change in trade unions has often been slow. Several
high-profile unions are still run by leaders who prefer staging industrial action
as a means of recruiting new members. This means that membership in the
private sector, particularly in America and Britain, has seen a larger drop than
that in the publicsector (although the numbers of private sector union
members has increased slightly more recently in Britain). As the public sector
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contracts, particularly in Britain, that may make the unions even more
vulnerable.
This trend is not universal. In some countries, trade union membership has
grown: Spain, Ireland and Luxembourg have all seen an uptick in members
over the past three decades. Meanwhile, there is scope for even more growth
in emerging markets. Since 1981, when records for Chile began, the number
of people who are members of a trade union there has more than doubled.
Between 1992 and 2013 the number of union members in Mexico increased
by 25%. Workers at China’s manufacturing plants may also increasingly start
to organize themselves. In addition, despite the declining number of members,
unions in places such as France still hold sway in other parts of the market,
determining wages or preventing businesses from expanding. Nevertheless,
unless western unions start to widen their appeal, events such as the meeting
of 500 trade union members for the European Trade Union Confederation in
Paris held on September 2015 will become increasingly somber.
Assignment 20. Find the synonyms to the following words:
1. Precisely
2. Amenable
3. Clout
4. To modernize
5. To recruit
6. Vulnerable
7. Trend
8. Uptick
9. Appeal
10. Somber

Assignment 21. Do some research and write a 100-200 word history of

unions in your country. (For example:
1. When were they first founded?
2. Have they always been legal?
3. Have there been periods in which they have been more or less
powerful, or important, or necessary, than today?)

Assignment 22. Express your views on the following statements:

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 Without unions, workers will lose many of the protections against
abusive employers. Wages for all will be depressed, even as corporate profits
soar. The American Dream will be destroyed for millions. —Kenneth
Bernstein
 The methods by which a trade union can alone act, are necessarily
destructive; its organization is necessarily tyrannical. - Henry George
 As can be seen in our history, the only answer to a powerful business
leader is a powerful labor union.— Hilton M. Weiss
 It is to the real advantage of every producer, every manufacturer and
every merchant to cooperate in the improvement of working conditions,
because the best customer of American industry is the well-paid worker.—
Franklin D. Roosevelt
 Unions have been the best anti-poverty program that actually worked
and did not cost the government a dime. —Andy Stern
 I am glad to see that a system of labor prevails under which laborers
can strike when they want to.—Abraham Lincoln
 If I went to work in a factory, the first thing I'd do would be to join a
Union.—Franklin D. Roosevelt

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