Английский язык (стр. 8 )

Most organizations have a hierarchical or pyramidal structure, with one person or a group of people at the top, and increasing number of people below them at each successful level. There is a clear line or chain of command running down the pyramid. All people in the organization know what decisions they are able to make, who their superior (or boss) is (to whom they report), and to whom they can give instructions.

Some people in an organization have colleagues who help them: for example, there might be an Assistant to the Marketing Manager.

Today, most large marketing organizations have a functional structure, including (among others) production, finance, marketing, sales and personnel or staff departments. This means, for example, that the production and marketing departments cannot take financial decisions without consulting the finance department.

Functional organization is efficient, 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, for example, finance and marketing, or marketing or production, 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. Each division has its own engineering, production and sales departments, made a different category of car (but with some overlap, to encourage internal competition), and was expected to make a profit.

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. For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production. This is one way of keeping authority at lower levels, but it is not necessarily a very efficient one. Some people insist on the necessity of pushing authority and autonomy down the line, but argue that one element – probably the product – must have priority; four dimensional matrices are far too complex.

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 not often very good for decision-making, and they run the risk of relational problems, unless they are small and have a lot of self-discipline. In fact they still require a definite leader, on whom their success probably depends.

II Answer these questions:

What kind of structure do most organizations have? What helpers do some people in organizations have? What kind of structure do most manufacturing companies have? What does a functional structure mean? Is a functional organization efficient? Which are two standard criticisms? Is it efficient for a large organization manufacturing a range of products to a single production department? Why? How can businesses simulate decentralization if they can’t be divided into divisions? Why can’t people at lower levels make important decisions? Why is it successful to create autonomous, temporary groups?

III. Which of the following three paragraphs most accurately summarizes the text, and why?

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 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 level.

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 munication among divisions can be improved by the introduction of matrix management or teams.

V.  Study the organization chart, then complete the description of the organization:

Executive Management

Mr. Richard Baldwin

President and Chief Executive Officer

Dr. Kevin Higgins – Research and Development	Mr. David Eitingam – Production	Mrs. Petra Cusimano – Finance, Personnel, and Administration	Mrs. June Heskesh – Marketing and Sales
Mr. Patrick Amos – Multiplex Systems	Mr. Emma Wood – Cable Systems	Mr. Roger Carter – Microwave Systems	Ms. Vera Roberts – Space Systems	Mr. Robert Shaw – Mobile Radio Systems	Mrs. Sileen Nardo – Teleflex Ltd

The h…………of the company is Chief Executive Officer. He is also the P…………….and am………….of the Board of Directors. U……….him there are four e……….managers, responsible for research and d………., production, f………., personnel and administration and m……….and sales.

The company’s activities are d……….into six business areas, headed by different d……….managers. These managers r………directly to the Chief Executive Officer.

VI.  Role-play. Work in group of four. Imagine that you and your partners have just organized the company and now you discuss the best way of company organization. Student A is in favour of line structure, Student B is in favour of matrix structure, Student C is in favour of functional structure and Student D is in favour of staff structure. List the advantages and disadvantages and defend your point of view.

Text C

A Loan Agreement

Article 5 Overdue Payments

If the Borrower falls to make any required payment with respect the repayment of the loan, payment of the Interest, payment of the Management Fee, or any other items payable under this Agreement on the date(s) due, from and including the due date to and including the date of actual payment, at the rate of 2.375% per annum over and above the week, one month, three month or six month LIBOR determined on the due date(s) and from time to time thereafter for successive interest periods for so long as such amount remains unpaid, hereinafter called ‘the Overdue Interest’.

The applicable LIBOR shall be the arithmetic mean, rounded upwards, if necessary to the nearest whole multiple of 1/16 of 1% of the relevant LIBOR for deposits in the United States Dollars as quoted on the Renter’s monitor page ‘LIBO’ as or about 11: 00 a. m., London time on the due date(s) and thereafter for each successive Overdue Interest Period as defined below, on the second business day in London, England prior to the first day of each such Overdue Interest Period.

The Lender shall in its discretion determine the interest period with respect to any overdue amount. Overdue Interest Period. The Overdue Interest shall be calculated on a 360 day year basis, by counting the actual number of days elapsed in that period.

Any payment made by the Borrower after such a failure shall be applied first to the Expenses and the Management Fee, then to the Overdue Interest, then to accrued Interest and then to repayments of the Loan overdue.

Article 6. Method of payment

All amounts payable by the Borrower to the Lender under this Agreement, including, but not limited to, repayments of the Loan, payments of the Interest, the Overdue Interest, the Expenses, the Management Fee, shall be payable in the United States Dollars in net amounts receivable by the Lender and shall be paid by the Borrower in the full amount stated under this Agreement, without deduction or offset of any present or future income or other taxes, levies, charges or other with holdings or impositions of any nature whatsoever. If the Borrower is required to withhold income or other taxes or levies imposed on repayment of the Loan, payment of the Interest, the Overdue Interest, or other payments due to the Lender by or within Russia under this Agreement, the Borrower shall bear the taxes and/or levies regardless of their nature, and pay them to the relevant authorities.

Unless otherwise provided under this Agreement, all payments by the Borrower to the Lender under this Agreement, including, but not limited to repayments of the Loan, payments of the Interest, the Overdue Interest, the Expenses and the Management Fee, shall be made by telegraphic transfer, for good value, in the United States Dollars to the Lender’s account No. 15012 with the Chase Manhattan Bank N. A, London, Wallgate House, Coleman Street, London EC 2, England not later than 10: 00a. m. London time on the date each payment is due.

The Borrower shall sent pre-payment order by telex which provides amount with its value date to be paid, two business days before each due date to the Lender’s Bank as described above.

Unit 5

Text A

Production

Vocabulary

To assemble products	Производить сборку продукции
Batch production	Серийное производство
Capacity	Производительность
Capital intensive	Капиталоемкий
Component	Компонент
Continuous production	Непрерывный процесс производства
Conveyer belt	Конвейерная лента
Credit facilities	Возможность получения кредита
Declining sales	Снижение спроса
Equipment	Оборудование
Formulation	Разработка
Growing sales	Растущий спрос
Guarantee	Гарантия
Half-finished items	Полуфабрикат
Inventory	Инвентарь
Job (unit) production	Мелкосерийное производство
Just-in-time production	Производство точно в срок
Labour intensive	Трудоемкий
Lead time	Время выполнения заказа
Maintenance	Эксплуатация
Make-or-buy decision	Решение о собственном производстве
Manufacture (v)	Производить
Manufacturer	Промышленник
Mass (flow-line) production	Массовое производство
Outsourcing (contracting out)	Получение заказов от других предприятий
Overproduction	Перепроизводство
Plant	Завод
Product defects	Брак продукции
Product life-cycle	Жизненный цикл продукта
Product line	Производственная специализация
Product mix	Ассортимент изделий
Productivity	Производительность
Setback in production	Спад производства
Stable sales	Устойчивы спрос
Stock-piling	Складирование
Subcontractor	Субподрядчик

I.  Read the text and translate it into Russian:

Types of production

Production methods are conventionally divided into three types: job or unit production, mass or flow-line production, and batch production.

a)  Job production

-  In this type jobs are carried out individually and usually to the specific order of a customer. Job production can range from small units such as the production of individually designed piece of pottery to the building of a large cargo ship, from made-to-measure clothing to bridge-building.

-  Job production is usually very labour intensive since it does easily lend itself to mechanization. Further, the labour employed has to be highly skilled for the most part, and supervision must be constant and very technically competent. There is little opportunity for the use of highly specialized machinery, and the machinery that is used must be able to cope with varying work.

-  It is unusual for an organization to be able to make for stock as each order will be different from previous orders and from future ones. In many cases, such as bridge building or in road construction, there can be no question of making for stock.

-  Where jobs of high value and extended time-span are the rule problems are often experienced with financing the projects, especially in view of the high labour content which means that large sums for wages have to be regularly found.

b)  Mass production

-  This method, which is also known as flow-line production, is a process of continuous production where large numbers of more or less identical units are manufactured continuously. It is the exact opposite of job production. Little or no individuality can be introduced into the product, and the processes are extremely capital intensive. The labour content is relatively small compared to the capital investment, and most of it is unskilled or semi-skilled. Highly specialized machinery is used and in the most modern mass-production plants practically all of the work and machines are controlled by computer. The small proportion of skilled labour required is employed to set up the machines for production, and is highly paid. This small, very skilled, work-force is a vital element in continuing production and disruption of their operations normally causes severe setbacks in manufacturing volume, and can cause production to cease altogether.

-  Mass-produced products which, range from such items as breakfast cereals and paper products to motor-cars, are manufactured in advance of sales, and sales forecasting and marketing of a high order are essential for the success of the manufacturing enterprise.

-  A distinction is usually made between two aspects of this method of production. The term ‘mass production’ (or flow-line production) is used for the continuous production of manufactured goods such as those just mentioned. Where the nature of the product is the result of formulations such as petrol-chemical products, adhesives and jams, process production or continuous flow process production are the terms normally used.

-  In order to remain profitable it is necessary for enterprises employing mass-production methods to utilise machinery to virtually full capacity. When orders fall short of full capacity it is often more advantageous to keep the plant running and to produce for stock rather than to reduce the volume of output. An example of this is a stock-piling of motor-cars when sales are low. This situation cannot, of course, continue indefinitely. In the case of domestic consumables, such as washing-powders, attempts are made to stimulate sales by variety of means including ‘special offers’, competitions and free gifts.

c)  Batch production

-  This is a method that falls between job and mass production, and may be said to be repeated production but not continuous production. It is employed where orders consist of a significant number of similar items but these orders are not sufficient to justify continuous manufacture.

-  Industries offering choices of design or sophistication in their products make use of batch production, a notable one being the furniture industry. A batch of one design will be made and then a batch of another, and then perhaps the first will be run again. Labour is more skilled in this method of production than in mass production because of the variety of the work entailed, and machines are more versatile. It uses more labour, proportionately, than mass production and less machinery.

-  Whether goods are made in advance of orders or subsequent to them depends not so much on the type of production method as on the situation in the market. A manufacturer using batch production will set a production run when orders for a particular item are received, but has the problem of making the run economically viable; in other words producing sufficient quantity to make the run profitable. He does this by adding a stock quantity to the ordered quantity. One of the most difficult problems in batch production is, in fact, this one of the deciding what is the economic batch size.

-  Batch production can offer some of the cost saving advantages of mass production, but also allows the manufacturer to satisfy individual job orders if necessary because of his more versatile machinery and skilled workers. At no time, however, can the user of batch production methods compete in price with mass-production items.

II.  Match the equivalents:

1. Batch production	a) Капиталоемкий
2. Capital intensive	b) Конвейерная лента
3. Continuous production	c) Массовое производство
4. Conveyer belt	d) Мелкосерийное производство
5. Equipment	e) Непрерывный процесс производства
6. Formulation	f) Оборудование
7. Job (unit) production	g) Промышленник
8. Labour intensive	h) Разработка
9. Manufacturer	i) Серийное производство
10. Mass (flow-line) production	j) Складирование
11. Setback in production	k) Спад производства
12. Stock-piling	l) Трудоемкий

III.  Answer the questions: