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●Whichnewitem(A,B,C,DorE)doseeachstatement1–8referto?

●Foreachstatement1–8,makeoneletter(A,B,C,DorE)onyourAnswerSheet.

●Youwillneedtousesomeoftheselettersmorethanonce.

Example:

1Someonehasleftacompetitortojointhiscompany.

ABCDE

1Genuinefeedbackwouldreleaseresourcestobeusedelsewhere.

2Managersareexpectedtoenabletheirstafftoworkeffectively.

3Expertsareunlikelytofacilitateamovetogenuinefeedback.

4Therearebenefitswhenmethodsofevaluatingperformancehavebeennegotiated.

5Appraisalstendtofocusonthenatureoftheface-to-facerelationshipbetweenemployeesandtheirlinemanagers.

6Theideathatemployeesareresponsibleforwhattheydoseemsreasonable.

7Despiteexperts’assertion,managementstructurespreventgenuinefeedback

8Anincreasingamountofeffortisbeingdedicatedtotheappraisalprocess.

A

Performanceappraisalisontheupandup.Itusedtorepresenttheonetimeofyearwhengettingonwiththeworkwasputonholdwhileenormousquantitiesofmanagementhourswerespentintheearnestritualofratingandrankingperformance.Nowthepracticeisevenmorefrequent.Thisofcoursemakesitallthemoreimportanthowappraisalisconducted.Humanresourcesprofessionalsclaimthatmanagersshouldstriveforobjectivityandthusforfeedbackratherthanjudgement.Butthesimplefactofthematteristhatthenatureofhierarchydistortstheconceptoffeedbackbecauseperformancemeasureareconceivedhierarchically.Unfortunately,alltoomanyworkerssufferfromtheinjusticesthatthisgenerates.

B

Thenotionbehindperformanceappraisal-thatworkersshouldbeheldaccountablefortheirperformance-isplausible.However,theevidencesuggeststhatthepremiseiswrong.Contrarytoassumptionsappraisalisnotaneffectivemeansofperformanceimprovement-itisjudgementimposedratherthanfeedback,ajudgementimposedbythehierarchy.Usefulfeedback,ontheotherhand,wouldbeinformationthattoldboththemanagerandworkerhowwelltheworksystemfunctioned,andsuggestedwaystomakeitbetter.

C

WithintheproductionsystematthecarmanufacturerToyota,thereisnothingthatisrecognizableasperformanceappraisal.Everyoperationinthesystemhasanassociatedmeasure.Themeasurehasbeenworkedoutbetweentheoperatorsandtheirmanager.Ineverycase,themeasureisrelatedtothepurposeofthework.Thatmeasureisthebasisoffeedbacktothemanagerandworkeralike.Toyota’sbasicideaisexpressedintheaxiom“badnewsfirst”.Bothmanagersandworkersarepsychologicallysafeintheknowledgethatitisthesystem-nottheworker–thatistheprimaryinfluenceonperformance.Itismanagement’sresponsibilitytoensurethattheworkersoperateinasystemthatfacilitatestheirperformance.

D

Inmanycompanies,performanceappraisalspringsfrommisguidedasassumptions.Tojudgeachievement,managersusedateabouteachworker’sactivity,notanevaluationoftheprocessorsystem’sachievementofpurpose.Theresultisthatperformanceappraisalinvolvesmanagers’judgementoverrulingtheirstaff’s,ignoringthetrueinfluencesonperformance.Thustheappraisalexperiencebecomesaquestionofpleasingtheboss,particularlyinmeetings,whichispsychologicallyunsafeandsociallydriven,determiningwhois“in”andwhois“out”.

E

Whenjudgementisreplacedbyfeedbackinthetruesense,organizationswillhavealotmoretimetodevotetotheircustomersandtheirbusiness.Notimewillbewastedinappraisal.Thisrequiresafundamentalshiftinthewaywethinkabouttheorganizationofperformanceappraisals,whichalmostcertainlywillnotbeforthcomingfromthehumanresourcesprofession.

PARTTWO

Questions9–14

●Readthetext,whichdescribestheexperienceofacompanythathasmadebigchangesinitsofficeprocedures

●Choosethebestsentencefromtheoppositepagetofilleachofthegaps.

●Foreachgap9–14,markoneletter(A-H)onyourAnswerSheet.

●Donotuseanylettermorethanonce.

●Thereisanexampleatthebeginning.(0)

Beyondpaperwork

TheDanishelectronicsmanufacturer,Oticon,isaleaderinthemovetowardsthepaperlessoffice,Intheircafeteriaahugeglasspiperunsfromceilingtofloor.Whenthemailcomesin,itisimmediatelyscannedintothecomputer,shredded,andthrowndownthetubetothegeneralcheersoftheemployees.(0)Havingallmailandmemosavailableonlyascomputerfilestobereadonthescreenmakesiteasytodispensewithlargephysicalstoragespacesforpeoplewhoworkatdesks(9)

Changingovertothepaperlessofficerequiredarapidincreaseincomputerliteracy,butratherthansetupacorporatetrainingprogrammetheyturnedtheproblemovertoemployees.Eightmonthsbeforethesystemwasinstalled,theyofferedeachemployeeapowerfulpersonalcomputerforuseathomeinexchangefortrainingthemselvestouseit.(10)

Thebigchangewasnotthemovefrompapermemostocomputermessages.Oticonrealisedthatthemoreradicaltransformationisfromwrittentoverbalcommunication.(11)thataddsuptoalargenumberofface-to-faceexchanges,abigimprovementovermemosandtheoccasionalmulti-hoursit-downconsultationtypicaloftheoldculture.Peopledonotsendeachothermemos,theytalk.AstheCEOputsit,“Wehavejumpedthroughthememowallandgonerighttoaction.”

OntheeighthofAugust1991,thecompanylefttheiroldwood-panelledoffices.(12)Sincethentheyhavecutinhalfthe“timetomarket”onnewproducts.Thefollowingyear,salesandprofitsgrewmorethaneverbefore.(13)infact,despiteadownsizingof15percentemployeesatisfactionishittingrecordhighs.

Oticonhascreatedanorganizationalpatternthatsupportsgreatfreedomiofactionforindividualsandterms.Theyhavetiedittogetherwithaminimumhierarchy.

Thefirstclearresultstoshowupwereinthegreaterefficienciesgeneratedbythefactthatlesstimeneededtobespentonmanagementactivities.(14)theyalsohavesomeinvestmentinthesuccessoftheprojecttheychoose.Oticonhassucceededinbreakingthemouldmouldandtakingaleadinnon-bureaucraticorganizationaldesign.

ABCDEFGH

AThissavingwaspossiblebecausewhenpeoplehaverealchoiceinthenatureoftheirjobs,theycommitthemselvestobeingresponsiblefortheirareasofchoice.

BTheywereheadedforanewbuildingandaneweraincommunication.

CInstead,theyhavelargeprivateareasontheirharddisksfortheircorrespondence.

DInspiteofthis,thephysicalofficelayoutatOticonisoneofitsmostcharmingfeatures.

EOver90percentaccepted,andtheyorganizedaclubtohelponeanotherlearn.

FTofacilitatethis,theon-sitecoffeebarshavenowbecomethevenueforabouttwentymeetingsaday,averagingtenminutesand2.7participantseach.

GSo,arepeoplehappywiththechange”

HOnlyabouttendocumentsaday,itemslikelegalcontracts,escapethistreatment.

PARTTHREE

Questions15–20

●Readthefollowingarticleaboutthedevelopmentoftheknowledgeeconomyandthequestionsontheoppositepage.

●Foreachquestion15–20,markoneletter(A,B,CorD)onyourAnswerSheetfortheansweryouchoose.

Therehavelongbeenmarketsintin,cocoa,silverandthelike.Thereusedtobesecurityinthinkingthatsomewheretherewasaproduct,somethingyoucouldtouchandsee.Nowtherearenewmarketsinabstractions,tradeinideasandknowledge.Everyonehasknowledgebutthereusedtobenowaytotradeit------exceptthroughjobs.Thatsimplefactofeconomiclifewasthebasisforwhitecollaremploymentforcenturies.Thewholejobculturegrewupbecausetherewasnoalternativewaytosellknowledge,otherthentheworkerormanagerproviding,forafixedprice,hisorherknowledgetoanemployertoownorcontrol.Thequantityofknowledgeprovidedhastypicallybeenmeasuredintime.

Buttodaywestandatthethresh-oldofanewera.Theinformationeconomyhasmaturedandbecomesmarter.Accordingtomanybusinesscommentators,wearenowlivinginaknowledgeeconomy.Therehasalwaysbeenamarketforknowledge,ofcourse.Thepublishingindustryisbasedonit.Buttodaytheinternetismakingthedistributionofknowledgeevereasier.Thedayswhenthepublisherdecidedwhatgotpublishedareover.AnyonewithaPcandamodemcantalktotheworld.Thisisreducingthefrictionintheknowledgeeconomy.

Everyonehasknowledgeofwhateverindustrysheorheisin.sayyouareacomputerdealer,forexample.Overtheyearsyourhavecompliedalistofthetenbestlowestpriceplacestobuywholesalecomputerequipment.Nowyoucansellyourknowledgetonewer,youngercomputerdealerswhohavenowaytobuildupthisknowledgewithoutlosingthousandsofpoundsfindingitoutthehardway.Untilnow,suchknowledgeremainedsecurelylockedintherecipient’shead,accumulatedandthenworthlesslywitheredaway.Thisnolongerneedstobethecase.Suchknowledgecanbesoldviawebsites.

Knowledgehasadistinctadvantageintoday’smarketplace.It’sarenewableresource.Betteryet,itsworthactuallyincreases,.“knowledgeistheonlyassetthatgrowswithuse.“observesScanfordUniversityProfessorPaulRomer.Butwhatexactlyisknowledgeandhowcanitbepackagedtotradeonanopenmarket”“knowledgeisexperientialinformation,intelligenceappliedthoroughandgainedfromexperience.”SayJosenphPineandJamesGilmoreintheirbookTheExperience

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