Under Russian law the liability for damages is limited to 50 per cent of the value of the goods supplied. The plant management was determined to recover the amount of loss.
Questions
1. Do you find the position of the Buyers substantiated?
2. What losses were incurred by the Buyers?
3. What could be the Sellers’ position in the dispute?
4. Who has a real chance to win the case if the matter is submitted to Arbitration?
Roles
The Buyers’ side: Managing Director, Manager of the Finance and Currency Department.
The Sellers’ side: Chief Business Executive, Product Manager, Technical Expert.
Buyers
You represent the interests of the Russian Production Plant. You claim full compensation for the losses. The list of damages includes:
1. Part of the purchase price for the delivered equipment,
2. Projected transport charges back to the country of origin,
3. The fee to the Experts’ Commission.
You also claim the “lost profit”. Under Russian Law lost profit could be gained if the supplied equipment ran at s designed capacity. If your partner blocks the negotiation the only option left is to submit the case to Arbitration.
Tell your partner that you are ready to present
1. An Act of Experts’ Examination,
2. Chemical analysis of the content of steel.
During the negotiation you may refer to the Russian Civil (Code of the Article 219 entitles you to compensation).
Sellers
You represent the interests of the Suppliers.
During the talks you cannot deny poor operation of the equipment as finished products have visual defects. But you are dead sure that the only reason for malfunction is improper steel. You a| dead sure that poor quality steel affected the quality of the finished product.
In business you are always committed to a customer and your rescue plan may be:
1. To run a test with your own sample of steel used. It will help to discover the real fault.
2. To complete the commissioning of the full set of equipment. You will select people of better professional skills.
You may devise another plan. Just remember, that your main purpose is to dissuade your partners from rash actions.
Useful Language
Anything the matter?
The thing is …
Your claim should be supported by evidence.
That sounds reasonable.
There are complaints because…
There is also the problem of…
It came as a surprise.
It happened through no fault of ours.
Let’s split the expenses.
That’s just what we are going to suggest.
That seems fair.
Further Subjects for Discussion
An efficient business manager must know the law governing in a country where he runs his business. In business management it is a crucial point, especially when disputes arise.
How must a manager behave in a conflicting situation?
What are his rights by law?
Where can he apply for help?
These are the key questions to answer if you want expert management.
Exchange your opinions on the problem.
In this role play either of you should either agree or disagree with the arguments of the partner.
Table 3
Some useful hints on agreeing/disagreeing/saying you partly agree
Task 26. Writing 6
Write up the minutes of the meeting.
Task 27. Reading 9
Getting started
▪ Work in groups of three and discuss if there were any specialists in the past who run the business and their functions were similar to those of a present day manager.
▪ Can you think of a name for these specialists and their responsibilities? Were their duties the same or there were differences?
▪ Now skim the text, check your ideas.
▪ Consult Vocabulary p. 141.
1. The social reformer (19-th century)
He tried to intervene in industrial affairs to support the underprivileged factory worker at the hands of rapacious employer.
2. The welfare officer (late 19-th century)
He was appointed with specific responsibility for improving the lot of employees by dispensing benefits to deserving and unfortunate employees, in particular unemployment benefit, sick pay and subsidized housing.
3. The human bureaucrat
He was concerned with serving organizational as well as social ends. To meet the increasing size of companies and the specialization of management functions, the personnel manager’s role developed to take care of staffing, especially selection, training and placement.
4. The consensus negotiator (after the Second World War)
He had to develop expertise in bargaining in order to represent management’s interests more effectively in the face of the increasing strength of the trade union movement. The personnel manager sat on committees with union representatives to work towards consensus on matters affecting the workers’ conditions of service.
5. The organisation man (1960s)
He was concerned with the effectiveness of the organisation as a whole. The represented a move away from the inward focus of employer-employee relations to an outward focuses on the interaction between the people who make up the organisation and the surrounding society.
6. Manpower analyst
He is the manager of human resources. The trend towards quantifying all aspects of management has led to the view that human resources are a measurable resource that can be assessed, utilized and optimized to achieve the organisation’s goals.
Task 28. Talking Point 6
Work in groups of three, consult Speaking References p. 126–130 and discuss:
▪ Which of these six stereotypes do you find most attractive?
▪ Which best describes the work of the personnel department in your organisation?
Task 29. Talking Point 7
Read the situation below and act out the conversation between Jana and Dirk. Consult Speaking References p. 126–130.
Jana and Dirk talked about some of the main issues within Personnel Management and Human Resources Management. Although the two fields have many common areas, there is a substantive difference of emphasis.
Personnel