In accordance with your request to Mr Boss, I am taking the liberty of providing you with a brief overview of an organizational structure. Furthermore, I will give a definition of the term “organizational chart”. Next I will distinguish between the tree forms of company authority. Finally I will give a suggestion for how Sicher AG could organize its employees in order to minimize bureaucracy.
It is very important to have an organizational structure in your company. Organizational structure is the specification of the jobs to be done within an organization and the ways those jobs relate to one another. In a typical organizational structure you will find the owner which is also called president at the top. The Managers are subordinated to the owner. If it is a big company other managers will be subordinated to the top managers. Finally, the managers supervise the workers. After determining the organizational structure is the next step to draw organization chart. Organization chart is a diagram, which shows the company’s structure and also the employees where they fit into its operations.
There are three forms of company authority. First, I will start with line authority. All employees are involved in a line authority from the top to the bottom. This relationship is directly linked to the production and sales of specific products.
Secondly, the staff authority advises the line managers in making decisions but a staff member do not have the authority to make the final decision. Staff members are linked to the owner with dotted lines. This makes easier to understand that the staff members provide services to the president, whereas the line managers are linked to the owner with solid lines. Solid lines represents that the managers are directly involved in producing the firm’s products.
Last, the committee and team authority grants authority to committees or to special work teams, which are involved in a firm’s daily operations. Today many firms are also using work teams. These teams consist of employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision.
In conclusion, I would recommend to Sicher AG implementing a committee and team authority. This is the best way to minimize bureaucracy because all employees would be responsible for their own project and also have authority about their work.
I hope the above information proves useful to you.
Please let me know if you require any further information.
Re: Exercise 5 (Organisational structure)
Dear Ladies and Gentlemen,
We acknowledge receipt of your letter of April 11 in which you described your current situation and your plans to establish an appropriate organisational structure for your company. In connection with your inquiry we would like to offer a brief explanation of suitable theoretical concepts and suggestions for an organisational structure that could be applied to your situation.
Firstly, we would like to outline the characteristics and purpose of an organisational chart. After that, you will be provided with an overview of the basic forms of authority that characterise the chain of command within a company. Finally, we are going to suggest a way for how to establish an appropriate structure in your company.
Organisations not only differ in their lines of business, their strategies and the way they present themselves to external partners. Underlying characteristics, such as the organisational structure play an equally important role in how a business defines itself and distinguishes itself from other businesses. An organisation chart is the appropriate tool to depict this structure and to make it understandable for everyone involved. By definition an organisational chart is characterised as a document or diagram that defines the way in which jobs are related to one another and, furthermore, it shows the individual employees how they and their job fit into this structure.
In addition to outlining the above mentioned relationships, organisation charts also show how authority is distributed among individual jobs, whereby we can generally distinguish between three different forms of authority. The most common, and in some respects most important authority is the so-called line authority. This form of authority can be defined as the direct chain of command and reporting relationships that run through the company on a hierarchical basis. Another type of authority is staff authority, which is usually attributed to non-value-adding departments, such as Human Resources or Finance. Such departments have an advisory function and do not have decision-making authority for the departments with which they work. The third form of authority is committee or team authority, whereby specifically formed project teams and their members are granted decision-making authority.
As far as your particular situation is concerned, we would suggest establishing not only an appropriate chain of command but also a suitable organisational structure. Since your company’s product portfolio and core business is most likely very diversified, we would recommend a divisional structure. This would have the positive effect of each division being able to concentrate on its daily business without having to also focus on other, unrelated tasks. Moreover, a divisional structure makes each department comparable in terms of its performance and it can help reduce bureaucracy.
We hope that the above information will prove useful to you and your company. If you do wish any more detailed information, especially on some of the other concepts that were mentioned, please don’t hesitate to contact us again. We are looking forward to our meeting next week where we would like to personally discuss the position with you.
Yours faithfully,
(502 words)
P.S. to Gerhard: I hope I didn't get the third part of the question wrong. I didn't quite understand if I should suggest an appropriate organisational structure or the best form of authority. As the description of the company said that it is looking for an organisational structure, I suggested one of those, although we didn't have to describe possible organisational structures in any of the other parts of the question.
thank you for your call this morning. I am very pleased that you have chosen our company to support the implementation of an organizational structure at Sicher AG. It is always a very exciting exercise to establish structures in a newly founded company like yours. In response to your questions, I am sending you some detailed information about this issue.
I’ll begin by giving you a definition of what an “organizational chart” is. Secondly I’ll give you a brief distinction between the three forms of company authority. Last, and most importantly, I’ll provide a few recommendations for how Sicher AG could organize its employees in order to minimize bureaucracy.
First of all, I’d like to point out, that an organizational chart is the core tool for structuring a company. I really like to stress that this chart is more and more important the bigger a company gets. In an organizational chart a company is able to clarify the structure in it and to show employees where they fit into a firm’s operations. Furthermore such a chart makes the reporting line visible. The term reporting line defines the relationship of employees to their superiors.
Next I want to give you information about the three different types of authority. If we talk about these, we have to distinguish between line authority, staff authority and committee and team authority. The most common way of authority is line authority. This means that authority flows in a direct chain of command from the top oft the company to the bottom. In daily operations this authority could be tricky as if one line manager makes a wrong decision it may happen that the production would be hold up. Furthermore a company can use staff authority, which means that it is possible to use special expertise to advice and counsel line mangers. The most popular areas for staff authority are law, accounting, and human resource management. Last but not least it is possible to define a committee and team authority. The reason to build them up is to give managers more authority if they work together in a committee for decision making purposes. Team authorities are used at the operating level, which means that groups of operating employees are empowered to plan and organize their own work and to perform that work with a minimum of supervision.
As you can see above, it is very difficult to find the right organizational structure and it is even more difficult to set up the right authority lines. Therefore I’d like to suggest you to start implementation of your organizational structure by thinking about how your reporting line should look like and how independent your employees should be form their supervisors.
For an insurance company like Sicher AG a team authority combined with staff authority would be a good approach to minimize bureaucracy. The teams should be organized according to special subjects, like life assurance or car insurance and so on. The employees in these teams should be able to work with less supervision as possible. To assist these teams I would prefer establishing staff authority like a law department. If your company to it this way, Sicher AG would be able to minimize bureaucracy as there are only a few managers and reporting lines stay flat. I would provide one manager for all teams who reports directly to the General Manager. Please note that it is important to equip team members with the authority to organize and plan their work themselves.
I hope the above information proves useful to you. Please keep me posted on the progress of the implementation of the organizational structure at Sicher AG and let me know if there’s any additional support Sicher AG needs.
We acknowledge receipt of your letter March, 10th in which you explained the current situation of your newly founded company Sicher AG. And first we would like to congratulate to your decision to set up a new business and for sure we can help you with the first steps of implementing an organizational structure.
In response to your questions we would like to briefly outline the definition of an “organisational chart“ . Furthermore we would like to go into detail about the three forms of company authority. Finally we would like to offer advice on how to deal with bureaucracy.
In many large companies the organization chart can be large and incredibly complicated and is therefore sometimes dissected into smaller charts for each individual department within the organization.
An organizational chart is a diagram which represents the structure of an organization in terms of rank. The chart usually shows the managers and sub-workers who make up an organization and also shows relationships between staff in the company.
Whatever type of structure your company develops, you must decide who will have authority over whom. Therefore exist three individual ways of delegating responsibility and authority. To start with there is the possibility of “line authority“. Most companies rely heavily on line departments as it is a direct chain of command from the top of the company to the bottom. Every line department is linked to the production and sales of specific products. Moreover, each line department is essential to an organization‘s success. Secondly, the “staff authority“ is based on special expertise and usually involves counselling and advising line managers. Common staff members include specialists in areas such as law, accounting, and human resource management. Additionally, this is also a very popular form of authority. Last, companies have the possibility to use “committee and team authority“, an authority granted to committees or work teams that play central roles in the firm‘s daily operations. A committee, for example, may consist of top managers from several major areas.
As far as your situation is concerned, there would be a first step that could be taken. Due to your situation as a start-up company we would recommend organizing the firm as a “functional organization“ for the first years. Such organizations are usually structured around basic business functions like marketing, operations and finance. The benefits of this approach include specialization within functional areas and smoother coordination among them. Additionally, you could hire experts with specialized training, for example for the marketing department, which handles all marketing for the firm.
We hope that the above information will prove useful to you and that our suggestions are able to contribute to solving your problems. If you need any further information, please don’t hesitate to contact us again. We would like to wish you good luck with your new motivation strategy.
ex #5
Dear Ladies and Gentlemen,
We acknowledge receipt of your letter from April 11th, 2007 and are gladly taking the opportunity to respond to your request for quotation.
Our statement will provide you with beneficial information about general aspects of business organisation theory. The first section will cover a definition of the term “organisational chart”, the second part will focus on a comparison of the three forms of company authority, and, to round up, we will give recommendation for how to organise your venture in order to minimize bureaucracy.
To start with, in context of business administration, an “organizational chart” is the visualisation of a company's organisational structure. It specifies both the jobs to be done as well as defines the reporting structure within the enterprise. To create an organisational chart, the first step to be taken is to analyse the company in detail. The aim is to identify different areas of specialisation within the firm. After that, jobs respectively responsibilities are arranged to departments. This process is conducted by the top management of the enterprise and therefore it has do decide whether it wants to form a flat or a tall organisation. Finally, chains of command as well as the reporting structure must be defined. The former depends on the chosen form of company authority. The author will briefly outline the three different types: line authority, staff authority and team authority. Line authority is used to organise basic functions of the company. Examples for this would be the sales department, the marketing department, or the human resource department. Staff departments, which normally have no decision authority, are on the one hand established to support line departments or on the other hand to accumulate and provide knowledge in very specialized areas. Team authority is used to solve problems which are not part of the daily business. Examples for this would be the formation of new projects, the expansion of the venture, or going abroad.
What are the main conclusions your company might use to improve its organizational structure and to anticipatory circumvent negative developments?
Our analysis has shown that your departmentalization is perfectly suited to meet current market needs . Generally, we would advise you not to change the basic structure, but we detected some inconsistency within the sales department. We would strongly recommend to broaden the span of control within that department and to form a team structure to enhance performance. It is needless to say that this process requires both permanent attention of the top management as well as reliable monitoring, provided by an external specialist.
I hope this information proves useful to you. Please let us know if we can provide you with any further information. I am looking forward to an opportunity to discuss the position with you.
Yours sincerely
Re: ex #5
Dear Mr. Grünauer,
We refer with thanks to your letter of 2nd April 2007 concerning the deliberations about your organizational structure. We are terribly sorry that it took us so long to reply to your letter but we had to do some research to make sure that we are able to answer your letter to your complete satisfaction.
The first paragraph of our letter will explain the issue “organizational chart”. Furthermore, we will provide information about the three forms of company authority. Finally, this letter will give recommendations on how your company can be organized in an efficient way that reduces unnecessary bureaucracy.
To begin with, an organizational chart displays the organizational structure of a company and shows how jobs fit into an organization. Boxes and lines are used to display the organizational chart graphically. The boxes represent the jobs and the lines show the reporting relationships meaning who has to report to whom. The boxes below another one symbolize the subordinates who have to report to the superior that is in a higher position. Creating an organizational chart is one task of the management process.
Besides other decisions, managers must determine who has to power to make decisions. In business English we would say who has the authority. There are three different types of authority. Managers do not have to decide on one because all three forms can exist parallel. The most common type is line authority which relies on the direct chain of command. The staff authority is given to departments which are experts in their field and provide support for other departments or the CEO. Typical staff departments are law, accounting and HR departments. A further form of authority is committee and team authority. A committee is a group of the most important executives that have the decision making authority and must be asked for approval before any decision can be implemented. Team authority means that a team can make decisions concerning the project they are responsible for by there own. As it is a very fast way of decision making, it saves time and costs .
This leads us to the question of how your company can be organized in efficient way that avoids unnecessary bureaucracy. The taller an organization gets, the more time it takes to make and implement decisions. Hence, we would recommend for you to avoid too many layers of management to maintain a flat organization. Furthermore, large companies like yours should be organized decentralised meaning that the decision-making authority is delegated to managers. Therefore, managers would not have to ask for approval for every decision and can implement them more quickly. Based on a study of the tasks of your manages, we found out that it would be possible to widen the span of control of your manages meaning that one managers monitors a greater number of subordinates. This would also lead to less bureaucracy and more efficiency.
We hope the above information and recommendation proves useful for you. In case you have further questions, please do not hesitate to ask.
We are looking forward to hearing from you.
Yours sincerely, DaniE Bearbeitet von: DaniE am: 4/12/07 18:51
Thank you for your letter of April 10 concerning the ask for help in building up an organizational structure in your newly founded company. I am sending you a few ideas in response to your question.
First of all I will give you a short explanation of the term “organizational chart” do help you understanding what it is and why you need it. Afterwards I will inform you about the three forms of company authority. Maybe you will use one form or all of them – all is possible. The last part of my letter will give you a suggestion for the best organizational structure to minimize bureaucracy in your company.
What does “organizational chart” mean? Ebbert and Griffin give a clear definition for this. They say that an organizational chart is a diagram that shows the structure of the company. In this chart you will also see the chain of command (who reports to whom) and where the employees fit into the organization.
I am sure that you now know the importance of the organizational chart. But how should you give authority to the individual manager? To answer this question you have 3 forms of authority – line, staff and committee/team authority. Line authority means the authority from the bottom to the “lower” employee according the chain of command. Another form of authority would be staff authority. This authority is based on expertise. Normally staff employees give advice to the operational manager in specialized tasks. Nowadays the last form of authority – committee and team authority – is getting more and more popular. There you have a team or committee of employees (maybe from different departments) which makes the decisions for a special task. This authority helps speeding up transactions with other departments or companies.
I explained you these few terms to give you a little information about this important topic. Let’s come to the overall question: “Which organizational structure” should you implement? As you know I visited your company last week to have a look at your employees, your service and your actual structure. The result of this analysis was as follows:
You have a very familiar atmosphere in your company and your employees like to work together. Unfortunately they are a little bit confused at the moment because they do not know their supervisors. The only official manager is Mr. Huber and he is rarely available for the employees. I would suggest introducing a flat organizational structure with wide span of control (number of employees supported by one manager). Having 4 middle managers with a span of control of average 6 employees would be perfect. You have to announce a financial manger (for the accounting and HR department together), a manager for the customer service hotline, a sales manager (for the sales department), and a kind of quality manager (for the development of new services and the overall quality control of the company). With this flat organizational structure you have a minimum of bureaucracy and effective employees.
I hope the above information proves usseful to you.
Please do not hesitate to contact me if you should require further information.
Re: Current Status Diploma Exam Thread 2007
Dear Mr. Frodo!
Thank you for your request from April 11th 2007. Setting up a business could be often stressful and challenging. I´m pleased to support you by giving you information and advice about organizational structers in this stressful phase of start-up.
Developing organizational structures requires some spezial knowledge. It is advantageous to get to know several information in this context. Therefore, I`d like to start by explaining the term “organizational chart”. Furthermore, I will focus on three different forms of company authority. In closing, I´d like to offer you a suggestion, how you could ensure to minimize bureaucracy at Sicher AG.
Organizations could be structured very differently. Which structure a company will adopt depends on its mission, strategy and purpose. Most firms clarify their structure by preparing a so-called “organizational chart”. This chart represents the structure of a company in terms of rank. Furthermore, it shows managers and subordinate workers and where they fit into its operations. Generelly, organizational charts of small businesses are not so large and complicated than in large organizations.
Furthermore, it is of great importance to determine who is supposed to make decisions. Therefore, I´d like to go in details according to the term “authority”, which can be divided into three categories. To start, authority can be explained as the power to make decisions necessary to complete tasks. As I mentioned before, a company can choose between three types of authorities, namely line authority, staff authority and team authority. In the case of “line authority” authority flows directly from the top of the company to the bottom of the company. This could be very helpful for employees, because they know exactly to whom they have to go with problems. “Staff authority” is a limited authority, because their staff members don´t have the authority to make final decisions. Generelly, they give advice to line departments. Furthermore, staff authority is based on special expertise. Due to this fact, this type of authority is often chosen in areas such as human resource management, accounting and laws. Finally, I´d like to focus on “team or committee authority”. This type gives authority to managers, who are members of committees and work teams. Generally, team members are top managers from several areas.
As far as your business is concerned, my team worked out a suitable strategy for your company. Due to the fact of minimizing bureaucracy we would recommend structuring your organization in small business functions. This type of organization is called “functional organization” and is determined by the relationships between group functions and activities. A significant advantage might be specialization within functional areas. Furthermore, your span of control should be relatively wide. This means that your organization should be maximized to few layers of management. Bureaucracy might be more avoided through flat organizational structures than taller ones.
I hope above information and suggestion proves useful to you. If you need further information, please don´t hesitate to contact me.
Finally, I´m pleased to inform you that our company is now ISO9000 certificated. Therefore, we can provide you additional features in future and guarantee for high quality services.
We acknowledge receipt of your letter of April 11th. In reply to your inquiry we will fill you in on all the essential information in order to find a suitable structure for Sicher AG.
First we will discuss the term organizational chart. Thereafter, we will outline the three major forms of authorities a mondern company may have. In closing, we will provide you with all the necessary information as to how to structure your company in order to keep bureaucracy on a microlevel.
These days a lot of companies post their organizational charts on their homepages. According to Ebert/Griffin an organizational chart clarifies the company´s structure and helps employees to identify their exact position in the company´s operation. Boxes are representing jobs and solid lines the chain of command.
Having decided to implement an organizational chart the question remains as to what form of authority the individual company fits to. There are three major forms of structures, namely line, staff and team authority. The most popular form is line authority which refers to a top-down chain of command. This concept is unlike a team and/or committee version where authority is granted to teams that play a crucial role in the company´s daily business. In between of these two structures, staff authority can be found. Staff managers help and advise line managers in making decisions. The goal is to distribute power and to help employees to act in teams.
All in all, therefore, it is highly recommendable to decide for one of the above mentioned structures before designing an organizational chart. According to your branch of business, both, team work and delegating your employees play a crucial role to perfom sucessfully. That is why we recommend for you to decide on staff authority. This concept will guarantee efficiency on a micro-level and minimizes bureaucracy. Due to the fact that line managers may decide on division-wide projects by themselves or together with staff managers, there is no need to contact top managers for decision-making frequently. A side bonus of this concept is that it gives top managers more time to concentrate on other leadership tasks.
In summary, we want to stress the fact that a suitable form of authority is essential for sucess. To begin with, we suggest for you to conduct a meeting with all middle managers and to work on an organizational chart together. After that, discuss the chains of command with your managers who should then pass them on to the employees.
We hope that the above mentioned informations prove useful to you. Our team will be availabe to answer any questions that may arise in connection with this report.
Exercise #1- Prost AG
“Can modern companies afford social responsible behaviour?” Or, asking the other way round: “Can nowadays companies still afford not to act in a social responsible way?”
The following report is going to discuss unethical business practices. It is divided into three sections. First, the article will focus on two common forms of unethical behaviour “insider trading” and “whistle blowing”: Thereafter the term “collusion” will be defined in detail. Finally, as an expert on ethics, I am going to present Prost AG a suggestion for what steps the company could take to limit unethical behaviour on all management levels.
Talking about unethical business practices means defining unethical behaviour first. According to Griffins stakeholder (social groups affected by a companies behaviour) model a company is responsible for five groups of stakeholders: customers, employees, investors, suppliers and local communities. A company that acts in a social responsible way towards its stakeholders shows social responsibility, violation of stakeholder rights proves unethical behaviour. In the case of “insider trading” a company violates its responsibility towards investors, as it does not protect shareholder rights and investments. The term “insider trading” is used if an insider (somebody who holds non-public, confidential information) uses his/her knowledge to gain from the purchase or sale of stocks. An employee who reveals a companies unethical, illegal, or socially irresponsible actions by publishing them in order to put an end to those actions is called a “whistleblower”. Whistle blowing harms the companies image and, as a consequence, employees rights by compromising job security.
Customers are an extremely important group of stakeholders, as company revenues depend heavily on the willingness of customers to buy their products and consume their services. Consumer behaviour dramaticly changed over the past decades. As a consequence, modern consumers become more and more mature and tend to pay regard to the ways companies interact with their social environments. Consumer rights are legally protected, misuse of those rights like unethical advertising methods or unfair pricing methods are illegal. One method of unfair pricing is called “collusion”. Collusion can be defined as illegal agreement between two or more companies and involves practices like price gouging (responding to increased demand with overly steep price increases) and price fixing (illegally controlling market prices and supplies).
A corporate social responsibility program can be established by following a four step approach. First: As responsibility has to start at the top it has to be considered in strategical planning. This means that top level management has to set a good example of how the company aims to fulfil its social responsibility. Thereafter top management develops a plan detailing the level of management support for the program. Thirdly, one executive must be put in charge of the firm’s agenda. Finally, the company has to analyse the success of the CSR program by conducting occasional social audits.
Considering all the facts mentioned before nowadays companies can not afford not to act in a social responsible way. Prost AG is well advised to
deal with ethical correct and social responsible forms of conducting business by establishing a CSR program. Bearbeitet von: Julia am: 4/13/07 12:10
I have been giving our conversation on how to introduce an organizational structure some serious thought. In the following, I will outline a few ideas I’ve put together with my team. First, I will define the term “organizational chart”. Furthermore, I am going to explain the three different forms of company authority between which a firm can decide on. After, I will recapitulate the main suggestions my team has come up with.
Organizational structures are important for every company as they specialize the jobs to be done within an organization and the ways in which those jobs relate to one another.
According to Griffin an organization chart helps a company to clarify the company’s structure and to show employees where they fit into a firm’s operations. The solid lines in an organization chart present the chain of command or the reporting relationship. Therefore, every employee knows who reports to whom.
When developing an organizational structure you must consider which form of company authority you would like to establish. It can be distinguished between three different forms: line authority, staff authority and committee and team authority. Line authority is an organizational structure in which authority flows in a direct chain of command from top level managers to the bottom. Most companies rely on line department, which are directly linked to production and sales of specific products. Secondly, staff authority is based on expertise and it involves advising line managers. Staff members do not have the authority to make final decisions, as they aid line departments in making decisions. Last but not least, team authority is granted to committees or work teams that play an important role in the firm’s operations. If the work of those teams is especially important for the company, the company may grant them special decision-making authority.
My team’s first suggestion for organizing your employees in a more efficient way is to conduct the first two steps - specialization and departmentalization – which are necessary for implementing an organizational structure. Specialization means determining the jobs that need to be done in an organization and choosing those people who will perform them. After you are informed about all relevant jobs it is important to determine how those jobs can be grouped into logical unites. This process is known as departmentalization. After that you can treat every department as a profit center. This means that each separate company unit is responsible for its own costs and profits.
The last decision to be made is whether to introduce a centralized or a decentralized organization. I would recommend to you establishing a decentralized organization, because there much decision-making authority is delegated to levels of management at various points below the top. Decentralized firms also tend to have a flat organizational structure with few layers of management and a wide span of control. This structure has the advantage that information doesn’t have to pass through so many organizational layers and therefore less bureaucracy is needed. Additionally, decisions could be made faster, as also lower-level managers are given decision-making authority. This could also lead to more motivation and job satisfaction, which are also very important when guiding employees.
The above is just a short sketch of the approach that we recommend. If it fits in with your general course of action, then I’d suggest having your and my people get together next week to develop a more detailed line of attack.
Thank you for your letter of April 5 concerning your newly founded Austrian insurance company Sicher AG. In respond to your question which structure fits best, we will give you a review of organizational structure. Firstly we would like to explain the important of an organizational chart. After that we will explain the different between three forms of company authority. Last bat not least we will help you to develop a structure that minimize bureaucracy.
Most businesses prepare organization charts to define the company’s structure and to show employees where they fit into the organization. The solid lines define the chain of command. The chain of command describes the reporting relationship within a company.
Whatever type of structure a company develops, it is necessary to decide who has the authority over whom. There are three forms of company authority. We can differ between line authority, staff authority, and committee and team authority. A line authority is an organizational structure in which authority flows from the top to the bottom. In contrast to line authority, whereas a manager has the authority to decide, staff authority is only involved in advising the managers. The separation between line authority and staff responsibility is clearly described. HR department and legal department are mostly staff members. Committee and team authority can not be compared with line and staff authority. Committees or teams are involved in decision finding and daily operations. Groups of employees are empowered to plan and organize their own work.
Now we would like to propose how to structure your company. As it is very important for you to minimize bureaucracy, we would suggest developing a flat organizational structure. This is characterized by a relatively wide span of control. The number of employees supervised by on manager is relatively wide. Furthermore we would advice organizing your company as functional organization. Such organizations are formed around the basic business functions like marketing, operations, and finance. You should have a marketing department, an operations department, and a finance department. This kind of organization gives employees the possibility to specialize. Specialized jobs are easier learned and can be performed more efficiently. Furthermore it is also easier to replace people who are specialized. This form of organization can be adapted and changed as soon as your company start growing substantially.
We hope the above information proves useful to you. We look forward to an opportunity to personally discuss the position with you. We will call you within the next five days to arrange an appointment.
Re: Current Status Diploma Exam Thread 2007
Introduction of CAD and CAM systems
Dear Ladies and Gentlemen,
thank you for you e-mail of April 4 concerning the operations processes of Leistung AG. As operations processes are increasingly gaining importance I am pleased to be able to present you a number of current technologies for improving effectiveness and performance.
I will divide my proposals into three parts, namely artificial intelligence, CAD and CAM systems. Last but not least I am going to give you an example which of those systems could be introduced.
Let me begin by explaining artificial intelligence. This is an information system which is designed for both top managers as well as first-line managers. On the one hand top managers can work with expert systems which are designed to imitate human thought processes. Specific problems can be solved by computer systems and the results can be discussed by upper-level managers in order to make decisions. On the other hand robotics can imitate human behaviour. What is more, they can avoid mistakes by remembering various tasks. When using robotics it is usually easier for first-line managers to monitor a department, plan future periods and thus save costs.
Furthermore, there are 2 information systems which could be useful for knowledge workers. On the one hand there are computer-aided design (CAM) systems which help to design products, simulating them and displaying them in three-dimensional graphics. The advantage of such a system is that each part of a product can be exactly designed. On the other hand there are computer-aided manufacturing (CAM) systems which design facilities, locations and equipment. These programs design more efficient flow paths for manufacturing products.
First of all I suggest introducing CAM systems, as these build a basis for further efficient product developments. If the machines in your plant are arranged in the right way you will probably be able to save costs regarding the time the machines are working as well as the way the machines are arranged because you will win some space which could be used for additional devices.
Furthermore, I suggest introducing CAM systems, because products can be designed more easily on computers with appropriate software. Not only the design software is crucial, but also the displaying software. As there are different options for displaying products you can choose between three-dimensional graphics on the computer and real prototypes which can be produced with rapid prototyping systems. These systems allow quick and cheap production of some prototypes which can be tested extensively before they are launched. If CAD and CAM systems are going to be introduced, Leistung AG can save 20 % of its current research and development costs.
I hope the above information proves useful to you. Please let me know if I can provide you with any further information ahead of the meeting.
With kind regards, Bearbeitet von: kerstinmars am: 4/13/07 17:05
Thank you for your letter of April 1st. In reply to your question about how to best structure an organization with the approach of minimizing bureaurcacy, I’m sending you some information.
First of all I will give a definition of the widely known term “organizational chart”. After that I’m going to discuss the three most common forms of authority within a firm. Finally I would like to give you some reommendation about how to reduce bureaucracy in your company.
The company’s organizational structure is one of the most important issues managers should consider as this can help streamlining organizational operations.
According to Ebert/Griffin an organizational chart dipicts both all jobs within and the structure of a business. Furthermore it defines the chain of command and shows employees where they fit in the organizational structure.
When looking at an organizational chart there often can be identified different authorities. These can be devided into line, staff and committee and team authority. All of them give information about the chain of command and therefore who reports to whom and who has the authority to delegate. The organizational structure in which the authority flows from the top of the company to the bottom is called line authority. A line department is directly linked to the production of a product and is therefore responsible for the processes. In contrast to that a staff member does not have the authority to make final decisions but helps line departments in their decision making process by providing useful information and giving advices. An example for this would be an employee of the marketing department who provides recent sales figures. Some companies arrange their employees in committees and teams. These work together on different projects and often have the authority to decide on task related issues.
Finally I would like to suggest a modell for reducing the levels within your company in order to minimize bureaucracy. I would recommend giving more responsibility to your employees. Therefore less supervision would be needed and as a result one manager could supervise more subordinates. The spans of control would become higher and the whole organization would become flatter. Additionally employees would not have to ask their bosses to confirm every single step they need to decide on. Moreover in case they had a question they would not have to wait very long to get an answer as there would be fewer levels of authorities and finally the bureaucracy would be minimized.
I hope the above information and suggestion turn out to be useful to you. Please, don’t hesitate to ask if you need more information or if you have any further questions.
I look forward to hearing from you.
Exercise 3
For a company that wants to invest in securities it is important to be well informed about different alternatives of bonds and stocks and the risks. Then the company can find the right diversification to make sure to be successful with the investment.
This report will start with a brief explanation of the function of agencies like Moody's and Standard & Poor's. After that the author will compare secured bonds and debentures. Finally a suggestion will be given for how Investfonds AG could make sure it always has the most up-to-date information on stock and bond developments.
By investing in bonds it is important to know how risky they are. The quality of bonds is rated by rating agencies like Moody's and Standard & Poor's. Ratings measure the default risk. This means the possibility that the company isn't able to pay back some or all of the promised payments. This ratings range from high grades (triple A) over medium grades and speculative to poor grades which are also called junk bonds. Junk bonds are low-grade bonds which means that the default risk is very high. To compensate this risk the issuer has to pay higher interests.
Corporate bonds are bonds issued by a corporation to increase its funds. Generally, experts distinguish between secured bonds and debentures. Secured bonds are bonds backed by the pledge of assets to bondholders which reduce the risk to bondholders in the case of default. Debentures are unsecured bonds which means that no specific property is pledged as security to back up the borrowing. Debentures are often used by financially strong companies. If weaker companies want to issue debentures they would have problems to find investors because such bonds get lower ratings.
For investors it is very important to follow the developments of stocks and bonds. Therefore Investfonds AG should be able to understand the security quotations in newspapers, TV or on the internet where you can find out many information about stocks and bonds. For example, the current price of a bond and stock and how this price has been changed since the previous day, the dividend paid out in the last year, the highest and lowest price of the securities and so forth.
Investfonds AG should also have a look at market index which summarize price trends of an industry or the stock market as a whole. One important market index is the Dow Jones Industrial Average which includes 30 blue-chip companies in the U.S. Another market index is S&L 500 (Standard and Poor's Composite Index) which is a broader market index based on 500 companies from different sectors. It includes 400 industrial companies, 40 utilities, 40 financial institutions and 20 transportation companies. According to many experts the Nasdaq Composite Index is the most important index because it includes all companies listed at the Nasdaq which are 4000 in total.
To sum up, Investfonds AG should find a right diversification of corporate bonds. Therefore it can use information from rating agencies like Moody's and Standard & Poor's. The investment manager should also make sure that he/she always has the most up-to-date information on stock and bond developments. Therefore the manager can use quotations and different market indexes.
Thanks for your letter of April 9 concerning Krampf GmbH’s troubles with motivating its employees. In response to your question, I would like to give you some useful information about HR motivation theories.
First, I will give you an overview of the terms “job enlargement” and “job enrichment”, which are two practises for motivating employees. Afterwards, I will explain the Hawthorne effect. Last, and most importantly, I will give you a suggestion for how Krampf AG could improve the level of their employees’ motivation.
As we all know, Humanr Resources Management is a set of organizational activities directed at attracting, developing and maintaining an effective workforce. The most important task of a Human Resources Manger is to motivate employees. Only motivated employees are satisfied with their job, and only if they are satisfied with their job they work as efficient as possible.
According to Griffin/Ebert there are several methods how to improve job satisfaction among the employees. In this case, there are two methods I would like to deal with: job enrichment and job enlargement. These two methods are generally used to increase satisfaction in jobs significantly lacking in motivating factors.
I’ll begin by giving you a brief explanation of “job enrichment”. It is a method of increasing job satisfaction by adding one or more motivating factors to the normal job activities. Job rotation is a good example for job enrichment. It means, that the employees rotate through various positions in the same firm. This method is very motivating, because the employees get to know other workplaces and so the risk of becoming bored is very low.
Now I will bring you the term “job enlargement” nearer. Job enlargement is one method of job redesign. In the case of job enlargement, some new tasks are added to the existing ones. Furthermore, they get more responsibility and that might be very motivating and satisfying for them.
This brings me to the next point of my letter, the explanation of the Hawthorne Effect. The Hawthorne Effect had a major influence on the human relations theory, because it says, that employees have the tendency to increase their productivity if they believe that they are receiving special attention from the management. Based on this theory, many HR managers nowadays try to motivate their employees by giving their employees special attention.
Now I would like to turn to the question, how Krampf GmbH could improve the level of motivation among their employees. With regards to the above mentioned information, I would suggest Krampf GmbH to implement such programs as job enlargement and job enrichment. Another idea for Krampf GmbH would be to implement flexitime programs. It is a method of increasing job motivation by allowing workers to create schedules on a weekly or daily basis, where they fill in the beginning and the end time of their working day. The employees have to adjust their work schedules among them, because if they do not, their might be know one in the office on Monday morning at eight. All in all, I think that Krampf GmbH could only benefit from implementing these methods.
I hope the above information proves useful to you. Please let me know if you require further information.
Re: BC 1 Letter Exercise MotivationOriginal
Dear Ladies and Gentlemen,
Thank you for your letter of May 4th concerning your problems with your employees’ job satisfaction. In reply to your request, I’m sending you some information about this and related topics. First, I will define the term “job satisfaction”. After that I am going to discuss the differences between two well known HR motivation theories namely “expectancy theory” and “equity theory”. Finally I would like to suggest some possibilities how you could increase job satisfaction among your employees.
Job satisfaction is according to Ebert/Griffin the degree of enjoyment employees derive from doing their jobs. If job satisfaction among employees is high they are also willing to work harder as they are more motivated. This also leads to a lower staff turnover which, eventually, helps to reduce and avoid unnecessary costs for searching new employees.
There are many theories about how to motivate people and many scientists who claim to know what kind of things best motivate employees. I would like to give you now some detailed information about two of them. While the equity theory claims that people compare their ratios of their input to their output with ratios of others the expectancy theory states that people will do things only if they believe that they are able to do it and get something rewarded that is of value for them. Following the equity theory employees can reach one of three results. First they can believe that their ratio is higher than, second, lower than, or third, equal to someone else’s ratio. Either this leads to dissatisfaction or even frustration or it results in a change in the employee’s thinking. The person could change his or her input and could work less or harder. Yet, it would also be possible that another ratio is used to compare with. On the other hand in expectancy theory follow three steps of a decision making process. First the employee asks herself whether she is able to perform the task. Second, she wants to know if she gets something in return. Finally it is proven if the reward is of value for the person. If all these questions are answered with “yes” then the employee is likely to perform the job.
As you can see there are different ways how people are motivated and therefore it is important to know and understand how employees make their decisions. I would suggest implementing a system of reinforcement. That is, paying rewards for favourable behaviour. Another way to increase job satisfaction would be establishing a flexitime system so employees can plan their time more independently. Furthermore there would be the possibility of management by objectives. This is a strategy of setting goals in cooperation with the employees. This requires defining companywide objectives and then there should be a communication process in which the employees are asked how in their opinions these goals could be achieved in the most effective way.
In conclusion there are many ways how employees can be motivated and the job satisfaction among them is high.
I hope this information turns out to be useful for you. If any questions arose do not hesitate to ask me. You can reach me under this e-mail address.
I look forward to hearing from you.
Yours faithfully
Korrektur
Dear Ladies and Gentlemen,
Thank you for your letter of May 4th concerning your problems with your employees’ level of job satisfaction. In reply to your request, I’m sending you some information about this and related topics. First, I will define the term “job satisfaction”. After that, I am going to discuss the differences between two well known HR motivation theories namely the “expectancy theory” and the “equity theory”. Finally, I would like to suggest some possibilities for how you could increase job satisfaction among your employees.
Job satisfaction is, according to Ebert/Griffin, the degree of enjoyment employees derive from doing their jobs. If job satisfaction among employees is high, they are also willing to work harder as they are more motivated. This also leads to a lower staff turnover which, eventually, helps to reduce and avoid unnecessary costs for searching for new employees.
There are many theories about how to motivate people and many scientists who claim to know what kind of measures best motivate employees. I would now like to give you ___ some detailed information about two of them. While the equity theory claims that people compare the ratios of their input to their output with ratios of others, the expectancy theory states that people will do things only if they believe that they are able to do it and get something as a reward that is of value for them. Following the equity theory, employees can reach one of three results. First they can believe that their personal ratio is higher than, ___ lower than, or ___ equal to someone else’s ratio. Either this leads to dissatisfaction or even frustration or it results in a change in the employee’s thinking. The person could change his or her input and could work less or harder. Yet, it would also be possible that another ratio is then chosen to compare one's own situation with. On the other hand,the expectancy theory follows a three steps __ decision making process. First, the employee asks herself whether she is able to perform the task. Second, she wants to know if she will get something in return. Finally it is assessed whether the reward is of value for the person. If all these questions are answered with “yes”, then the employee is likely to perform the job.
As you can see, there are different ways for how people are motivated and therefore, it is important to know and understand how employees make their decisions. I would suggest implementing a system of reinforcement. Such a system involves paying rewards for favourable behaviour. Another way to increase job satisfaction would be establishing a flexitime system so employees can plan their time more independently. Furthermore, there would be the possibility of management by objectives. This is a strategy of setting goals in cooperation with the employees. This requires defining companywide objectives and then there should be a communication process in which the employees are asked how, in their opinions, these goals could be achieved in the most effective way.
In conclusion, there are many ways for how employees can be motivated and their level of job satisfaction increased.
I hope this information turns out to be useful for you. If any questions have arisen, do not hesitate to ask me. You can reach me under this e-mail address.
I look forward to hearing from you.
Yours faithfully
Inhalt:
1) Ganz toll
Sprache:
1)"motivation theories namely": Vor "namely" immer ein Komma
2)"Job satisfaction is according to Ebert/Griffin the degree of": Wenn Du "according to X" mitten im Satz placieren willst, ist das eine jener Situationen, wo es (auch bei der DP) notwendig wäre mit Komma davor und danach abzugrenzen.
3) "it is proven if the reward ": "Überprüfen" ist auf Englisch nie "prove". Man kann "to check", "to assess", "to determine" oder "to consider" verwenden. In Folge ist "whether" auch eleganter als "if".
4) "That is, paying rewards for favourable behaviour.": Achtung- kein vollständiger Satz.
5) "I hope this information turns out to be useful for you. If any questions arose do not hesitate to ask me.": Entweder "if any questions arise" (d.h. künftige Fragen) oder "if any questions have arisen" (d.h. im Laufe des Lesens).
Re: Exercise 5 (organizational structure)
Dear Mr. Hütter,
Thank you for your letter of April 10th regarding your decision on an organizational structure in your company Sicher AG.
In the following I’ll outline a few ideas in response to your question on organizational structure. I’ll start with a brief explanation of the term organizational chart and will continue with a short distinction between the three forms of company authority. Thereafter, I’ll outline a viable approach how you could organize your employees in order to minimize bureaucracy.
Most of the companies in Austria use an organizational chart to define the structure within their business and to show which employee belongs to which operation. The lines in this chart just illustrate the relationship between the separate unions of the company, which is defined as chain of command or reporting relationship.
The following part concerns the three forms of company authority namely line authority, staff authority and committee and team authority.
These three forms are a definition of a company’s organizational structure. The first one, the line authority describes a structure in which the authority flows directly from the top management to different several unions, which are called line departments. In other words the authority is directly delegated to the line departments
In contrast to the line authority, the main function of the staff authority is counseling and advising. Specialists in several areas like human resource or law, the so called staff members help line departments to find solutions and decisions, but they do not have the authority to make final decisions.
More and more companies form committees or teams which get special decision authority. This expresses the third type the so called committee and team authority, that is involved in daily operations. Compared with the line authority not one department gets authority, but individual members of the several departments form a team or a committee, which gets authority.
In regards to the above mentioned content your company Sicher AG should implement team authority in combination with staff authority. I would recommend establishing teams like one for life insurance, another one for vehicles insurance, real estate, etc. As a support to all these groups and teams staff members like a lawyer help them with decision making. As a result, bureaucracy can be diminished.
This brings me to the end of my letter and I hope that the information provided in this letter proves useful to you. If you require further information and help, please don’t hesitate to contact me on the above number or e-mail. I’ll try to support you as much as possible to help organizing your business.
Re: Report Exercise 1Original
What is unethical behavior and how can companies deal with it? The following report will discuss some unethical practises and give a suggestion of how a company like Prost AG could reduce unethical behavior.
First, I will give an overview of what is defined as unethical behavior , and, in this case, explain the term “insider trading”. Secondly, I will define the term “whistle blower”, as one form of ethical commitment. Afterwards, I would give a brief overview of the term “collusion”. Finally, and most importanty, I will give a suggestion for what steps Prost AG could take to limit unethical behavior on all management levels.
According to Griffin/Ebert, unethical behavior is behavior, that does not conform to generally accepted social norms concerning beneficial and harmful actions. Insider trading is the illegal practice of using special knowledge about a firm for profit or gain. On the one hand, it ist the use of confidential information to gain from the purchase or sale of a company’s stocks. On the other hand, informed executives can avoid financial loss by selling stock that’s about to drop in value.
In contrast, whistle blowers are employees, who detect and try to put an end to a company’s unethical, illegal or socially irresponsible actions by making them public.
To move on, I will now give a brief definition of the term “collusion”. As we all know, responsibility toward customers is very important for a company because without it the customers would lose their trust in the company.
One method which many companies use is collusion. As collusion we understand an illegal agreement between two or more companies to commit a wrongful act like price fixing.
In regards to the above mentioned information, I will now give a suggestion for how Prost AG can implement a corporate social responsibility (CSR) program , and, in a row, could reduce unethical behavior in their company to a minimum.
Firstly, I would advise Prost AG to set up a code of conduct and develop clear ethical positions on how the firm and its employees will conduct business. This code of conduct should include rules of how business can be done in an ethical manner. Prost AG could also implement ethics programs, where managers of all levels have to go through periodic ethics trainings to remind them of the importance of ethical decision making and to update them on the must current laws and regulations.
In the special case of Prost AG, these ethics programs would be the best way to minimize unethical behavior on all management levels, because they are specially designed for every management level. Top managers, as well as first-line managers get to know ethical behavior especially for their purposes.
All in all, implementing these systems Prost AG it would make a big step forward towards a company with ethical behavior.
Korrektur
What is unethical behavior and how can companies deal with it? The following report will discuss some unethical practises and give a suggestion for how a company like Prost AG could reduce unethical behavior.
First, I will give an overview of what is defined as unethical behavior , and, in this case, explain the term “insider trading”. Secondly, I will define the term “whistle blower”__ as one form of ethical commitment. Afterwards, I would like to give a brief overview of the term “collusion”. Finally, and most importanty, I will give a suggestion for what steps Prost AG could take to limit unethical behavior on all management levels.
According to Griffin/Ebert, unethical behavior is behavior___ that does not conform to generally accepted social norms concerning beneficial and harmful actions. Insider trading is the illegal practice of using special knowledge about a firm for profit or gain. On the one hand, it ist the use of confidential information to benefit from the purchase or sale of a company’s stocks. On the other hand, informed executives can avoid financial loss by selling stock that are about to drop in value.
In contrast, whistle blowers are employees__ who detect and try to put an end to a company’s unethical, illegal or socially irresponsible actions by making them public.
To move on, I will now give a brief definition of the term “collusion”. As we all know, responsibility toward customers is very important for a company because without it the customers would lose their trust in the company.
One method which some companies use is collusion. The term "collusion" refers to an illegal agreement between two or more companies to commit a wrongful act like price fixing.
In regards to the above mentioned information, I will now give a suggestion for how Prost AG can implement a corporate social responsibility (CSR) program , and, in a row, could reduce unethical behavior in its company to a minimum.
Firstly, I would advise Prost AG to set up a code of conduct and develop clear ethical positions on how the firm and its employees will conduct business. This code of conduct should include rules of how business can be done in an ethical manner. Prost AG could also implement ethics programs, where managers of all levels have to go through periodic ethics trainings to remind them of the importance of ethical decision making and to update them on the must current laws and regulations.
In the special case of Prost AG, these ethics programs would be the best way to minimize unethical behavior on all management levels__ because they are specially designed for every management level. Top managers, as well as first-line managers, get to know ethical behavior especially for their purposes.
All in all, by implementing these systems, Prost AG __ would take a big step forward towards becoming a company that practises ethical behavior.
Inhalt:
1)Perfekt
Sprachlich:
1) Auch ganz toll. Ich habe zwar ein paar Komma-Dinge korrigiert, bin aber sehr beeindruckt, wie gut Du die englische Kommasetzung beherrscht!
2) "As collusion we understand ": "Unter X versteht man" ist fast immer: "The term X refers to"
Re: Exercise 1:Original
Dear Ladies and Gentlemen,
We would like to thank you for your letter of March, 10th in which you wrote that you are interested in increasing economic growth. In response to your questions and request for appropriate steps that could be taken, we would like to briefly outline various concepts and theories concerning higher economic growth. First, we are going to describe the term of “fiscal policy”. After that, we will go into detail about differences of the economic indicators GDP and GNP. Finally we would like to offer advice on how to deal with promoting higher economic growth.
Fiscal policy is the economic term that defines the set of principles and decisions of a government in setting the level of public expenditure and how that expenditure is funded. Fiscal policy and monetary policy are the macroeconomic tools that governments have at their disposal to manage the economy. Fiscal policy is the deliberate and thought out change in government spending, government borrowing or taxes to stimulate or slow down the economy. It contrasts with monetary policy, which describes the policies about the supply of money to the economy.
This brings us to two ways for measuring the size of its economy. First there will be an explanation of GDP and secondly a short overview of what is the difference to the GNP.
Thus the Gross Domestic Product of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. The Gross National Product, as opposed to the GDP, is the total value of all final goods and services produced by the countries citizens regardless of where they are located and sold on the market in a given time period.
This brings us to the question of how to promote higher economic growth? Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real GDP. We would recommend to decrease unemployment in Austria. As more people are employed, the amount of capital increases, education levels increase, the quality of capital changes, or the technology increases, the productive capacity of the economy increases. Therefore, the economy can increase its output giving consumers more disposable income, promoting an increase in consumption spending, and providing resources for business to use for further investment and government to use to provide public goods and services.
Increased labor force participation increases output. Expanded, improved education creates more productive workers. Business and government spending on research and development enhance our abilities to produce and allow each worker to become more productive, increasing incomes for all. Finally, to achieve a higher level of GDP in the future, consumers need to limit consumption spending and increase savings today, permitting businesses to invest more in capital goods. If resources are invested into building an economy now, future generations will enjoy a higher level of economic growth; our businesses will produce more goods and consumers can purchase more goods. Expansion of output at rates faster than our population growth is what gives us the opportunity to enjoy higher standards of living.
We hope that the above information will prove useful to you and that our suggestions are able to contribute your plans. If you need any further information, please don’t hesitate to contact us again. We would like to wish you good luck for your plans to increase economic growth.
Yours faithfully,
Korrektur
Dear Ladies and Gentlemen,
We would like to thank you for your letter of March, 10th in which you wrote that you are interested in increasing economic growth. In response to your questions and request for appropriate steps that could be taken, we would like to briefly outline various concepts and theories concerning higher economic growth. First, we are going to describe the term __ “fiscal policy”. After that, we will go into detail about differences between the economic indicators GDP and GNP. Finally, we would like to offer advice on how to deal with promoting higher economic growth.
Fiscal policy is the economic term that defines the set of principles and decisions of a government in setting the level of public expenditure and how that expenditure is funded. Fiscal policy and monetary policy are the macroeconomic tools that governments have at their disposal to manage the economy. Fiscal policy is the deliberate and thought out change in government spending, government borrowing or taxes to stimulate or slow down the economy. It contrasts with monetary policy, which describes the policies about the supply of money to the economy.
This brings us to two ways to measure the size of an economy. First, there will be an explanation of GDP and secondly, a short overview of what ___ the difference to ___ GNP is. ___ The Gross Domestic Product of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. The Gross National Product, as opposed to the GDP, is the total value of all final goods and services produced by the countries citizens regardless of where they are located and sold on the market in a given time period.
This brings us to the question of how to promote higher economic growth. Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real GDP. We would recommend decreasing unemployment in Austria. As more people are employed, the amount of capital increases, education levels increase, the quality of capital changes, __ the level of technology improves, and the productive capacity of the economy increases. Therefore, the economy can increase its output by giving consumers more disposable income, promoting an increase in consumption spending, and providing resources for businesses to use for further investment and for governments to use to provide public goods and services.
Increased labor force participation increases output. Expanded, improved education creates more productive workers. Business and government spending on research and development enhance our abilities to produce and allow each worker to become more productive, increasing income for all. Finally, to achieve a higher level of GDP in the future, consumers need to limit consumption spending and increase savings today, permitting businesses to invest more in capital goods. If resources are invested into building an economy now, future generations will enjoy a higher level of economic growth; our businesses will produce more goods and consumers can purchase more goods. Expansion of output at rates faster than our population growth is what gives us the opportunity to enjoy higher standards of living.
We hope that the above information will prove useful to you and that our suggestions are able to contribute your plans. If you need any further information, please don’t hesitate to contact us again. We would like to wish you good luck for your plans to increase economic growth.
Yours faithfully,
Inhalt:
1) Sogar viel mehr als notwendig wäre. Und das Endplädoyer ist ein wirtschaftspolitisches Meisterwerk! :-)
Sprache:
1) Über weite Strecken hinweg spitze.
2) "describe the term of": Nach "term" (aös Übersetzung für "Begriff") nie "of"
3) "a short overview of what is the difference to the GNP. ": Klassiker. Da eine Feststellung und keine Frage kommt das Zeitwort immer nach der 'Frage'.
4) "Thus the Gross Domestic Product of a country is defined as": "Thus" = "Dadurch", passt hier nicht wirklich.
5) "This brings us to the question of how to promote higher economic growth?": Da Feststellung und keine Frage auch kein "?"
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