TEST 1 READING PASSAGE 2
You should spend about 20 minutes on Questions 14-26, which are based on
Reading Passage 2 below.
CHANGE IN BUSINESS ORGANISATIONS
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A
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The forces
that operate to bring about change in organisations can be thought of as
winds which are many and varied – from small summer breezes that merely
disturb a few papers, to mighty howling gales which cause devastation to
structures and operations, causing consequent reorientation of purpose and
rebuilding. Sometimes, however, the winds die down to give periods of
relative organisational stability. Such a period was the agricultural age,
which Goodman (1995) maintains prevailed in Europe and western societies as a
whole until the early 1700s. During this period, wealth was created in the
context of an agriculturally based society influenced mainly by local markets
(both customer and labour) and factors outside people’s control, such as the
weather. During this time, people could fairly well predict the cycle of
activities required to maintain life, even if that life might be a little
more than subsistence level.
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B
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To maintain the meteorological
metaphor stronger winds of change blew to bring in the Industrial Revolution
and the industrial age. Again, according to Goodman, this lasted for a long time,
until around 1945. It was characterised by a series of inventions and
innovations that reduced the number of people needed to work the land and, in
turn, provided the means of production of hitherto rarely obtainable goods;
for organisations, supplying these in ever increasing numbers became the aim.
To a large extent, demand and supply were predictable, enabling companies to
structure their organisations along what Burns and Stalker (1966) described
as mechanistic lines that is as systems of strict hierarchical structures and
firm means of control.
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C
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This situation
prevailed for some time, with demand still coming mainly from the domestic
market and organisations striving to fill the “supply gap”. Thus the most
disturbing environmental influence on organisations of this time was the
demand for products, which outstripped supply. The saying attributed to Henry
Ford that “You can have any colour of car so long as it is black”, gives a
flavour of the supply-led state of the market. Apart from any technical
difficulties of producing different colours of car, Ford did not have to
worry about customers’ colour preferences; he could sell all that he made. Organisations
of this period can be regarded as “task-oriented”, with effort being put into
increasing production through more effective and efficient production
processes.
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D
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As time passed, this favourable period
for organisations began to decline. In the neo-industrial age, people became
more discriminating in the goods and services they wished to buy and, as
technological advancements brought about increased productivity, supply
overtook demand. Companies began, increasingly, to look abroad for additional
markets.
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E
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At the same
time, organisations faced more intensive competition from abroad for their
own products and services. In the West, this development was accompanied by a
shift in focus from manufacturing to service, whether this merely added value
to manufactured products, or whether it was service in its own right. In the
neo-industrial age of western countries, the emphasis moved towards adding value
to goods and services – what Goodman calls the value-oriented time, as
contrasted with the task-oriented and products/services-oriented times of the
past.
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F
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Today, in the post-industrial age,
most people agree that organisational life is becoming ever more uncertain,
as the pace of change quickens and the future becomes less predictable. Writing
in 1999, Nadler and Tushman, two of US academics, said: “Poised on the eve of
the next century, we are witnessing a profound transformation in the very
nature of our business organisations. Historic forces have converged to fundamentally
reshape the scope, strategies, and structures of large enterprises.” At a
less general level of analysis, Graeme Leach, Chief Economist at the British
Institute of Directors, claimed in the Guardian newspaper (2000) that: “By
2020, the nine-to-five rat race will be extinct and present levels of
self-employment, commuting and technology use, as well as age and sex gaps,
will have changed beyond recognition.” According to the article, Leach
anticipates that: “in 20 years time, 20-25 percent of the workforce will be
temporary workers and many more will be flexible,… 25 percent of people will no
longer work in a traditional office and … 50 percent will work from home in
some form.” Continuing to use the “winds of change” metaphor, the expectation
is of damaging gale-force winds bringing the need for rebuilding that takes the
opportunity to incorporate new ideas and ways of doing things.
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G
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Whether all
this will happen is arguable. Forecasting the future is always fraught with
difficulties. For instance, Mannermann (1988) sees future studies as part art
and part science and notes: “The future is full of surprises, uncertainty,
trends and trend breaks, irrationally and rationally, and it is changing and
escaping from our hands as time goes by. It is also the result of actions
made by innumerable more or less powerful forces.” What seems certain is that
the organisational world is changing at a fast rate – even if the direction
of change is not always predictable. Consequently it is crucial that
organisational managers and decision makers are aware of, and able to analyse
the factors which trigger organisational change.
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Questions 14-18
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Reading passage 2 has
SEVEN paragraphs A-G
Which paragraph
contains the following information?
Write the correct
letter, A-G
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14
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some specific
predictions about businesses and working practices.
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15
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reference to
the way company employees were usually managed.
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16
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a warning for
business leader.
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17
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the
description of an era notable for the relative absence of change.
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18
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a reason why customers
satisfaction was not a high priority.
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Questions 19-23
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Look at the
following characteristics (Questions 19-23) and the list of periods below.
Match the
characteristic with the correct period A,B or C.
Write the
correct letter A, B or C.
NB You may use
any letter more than once.
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19
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a surplus of
goods
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20
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an emphasis on
production quantity
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21
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the proximity
of consumers to workplaces
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22
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a focus on the
quality of goods
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23
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new products
and new ways of working
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List
of periods
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A. The agricultural age
B. The neo-industrial age
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C. The
industrial age
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Questions 24-26
Complete the summary
below
Choose ONE WORD ONLY
from the passage for each answer.
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Businesses in the 21st century
It is generally agreed that changes are taking place more quickly now,
and that organisations are being transformed. One leading economist suggested
that by 2020, up to a quarter of employees would be _______24, and half of
all employees would be based in the _______25. Although predictions can be
wrong, the speed of change is not in doubt, and business leaders need to
understand the _______26 that will be influential.
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ANSWER
KEY
14
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F
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15
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B
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16
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G
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17
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A
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18
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C
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19
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D
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20
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C
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21
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A
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22
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D
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23
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B
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24
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temporary
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25
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home
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26
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factors
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