This material is written for students who major in E-commerce. The topics selected mostly deal with basic areas of business and economics. They are presented in an order from a sole proprietorship to a multinational corporation. Each lesson is introduced and related to the previous lesson. Besides, students also have chance to deal with several topics related to information technology which has a very close relationship with e-commerce. To help students understand the text as well as do the tasks given effectively, we recommend that students should begin each lesson by looking at the glossary and the vocabulary exercises.
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………… o0o…………
English For E-Commerce
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INTRODUCTION
This material is written for students who major in E-commerce The topics selected mostlydeal with basic areas of business and economics They are presented in an order from a soleproprietorship to a multinational corporation Each lesson is introduced and related to the previouslesson Besides, students also have chance to deal with several topics related to informationtechnology which has a very close relationship with e-commerce
To help students understand the text as well as do the tasks given effectively, werecommend that students should begin each lesson by looking at the glossary and the vocabularyexercises
This course aims to:
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Provide students with key words and concepts of business, economics and information technology Develop students’ comprehension of business, economics and information technology in business Develop students’ basic English language skills such as writing, speaking, translating… especially reading comprehension Provides a good foundation for further studying CONTENTS Introduction 1
Unit 1: Wap Phones 3
Unit 2: Security and Privacy on the Internet 6
Unit 3: Online Services 10
Unit 4: Legal Forms of Organization 14
Unit 5: Production 20
Unit 6: Personnel 25
Unit 7: Marketing 30
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Unit 8: Distribution 35
Unit 9: Promotion 41
Unit 10: International Business 48
References 54
UNIT 1
WAP PHONES
Task 1: Answer the questions
Have you got a mobile phone?
What do you use it for?
How often do you use it per day?
What additional functions does it have?
Task 2: Study these examples of abbreviations used in mobile phone text messages Try to guess their meanings
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1 2DAY today 15 ATB
Some analysts reckon that Wap phones will overtake PCs as the most common way ofsurfing the internet, although PCs will still be used for more complex applications such asspreadsheets and video players
Some industry experts believe that Wap will have a limited lifespan and will quickly bereplaced by more sophisticated technology, such as General Package Radio Service (GPRS) andthe Universal Mobile Telecommunication Systems (UMTS) GPRS increases the bandwidth stillfurther and allows you to send up to ten times more information than Wap technology However,users will still be limited by the size and resolution of the screen on which the data is received.One analyst, Jakob Nielsen, advises companies to forget Wap and plan, instead, for the nextgeneration of phones He believes that mobile phones are going to become more like palmtopcomputer
A Wap phone cannot dial into every website The language of the web is HTML-hypertextmarkup language Wap operates on WML-wireless markup language, so Wap phones can only
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read pages written in WML Because the screen on a Wap phone is so small that you are unable to read a normal webpage, WML pages tend to consist of small chunks of information Soon, however, most web pages will be written in XML-extensible markup language This can be programmed to ensure that every phone or PC receives transmissions in the language it understands Wap allows you to deliver online services to a handheld computer People are also expected to use Wap to access online news and financial services, sports scores and entertainment information, most of which you should be able to reach by scrolling down a set menu bar You will also be able to book tickets by Wap Sending emails is likely to be the application that is used most often, as people will be able to pick up messages at any time from anywhere in the world Gambling and games, some of which can be downloaded, are also expected to be popular with users But you can, of course, use the Wap to make regular phone calls Task 3: What do these abbreviations mean? 1 GPRS……….
2 HTML………
3 SMS………
4 Wap………
5 WML………
6 XML……… Task 4: Match the paragraph with its main idea
Paragraph 1 Spread Paragraph 2 Internet
Paragraph 4 Email Paragraph 5 What is Wap?
Paragraph 6 Language Paragraph 7 Lifespan
Task 5: Answer the questions
1 What make people access information from the internet on a mobile phone?
2 Cannot Wap phones access all websites? Why (not)?
3 What advantages and disadvantages do Wap phones have?
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Task 6: Decide whether the following statements are True or False
1 ……We can send emails and access information from the internet on a Wap.
2 ……A Wap phone can dial to every website.
3 ……People like Wap phone because of its size and resolution of the screen.
4 ……Wap phones are able to read pages written in XML-extensible markup language.
UNIT 2
SECURITY AND PRIVACY ON THE INTERNET
Task 1: Answer the questions
1 Is it technically possible for computer criminals to infiltrate into the Internet and steal
sensitive information?
2 Can virus enter you PC from the Internet?
Task 2: Consider these examples of computer disasters How could you prevent them or limit their effect? Compare answers within your group.
1 You open an email attachment which contains a very destructive virus.
2 Someone guesses your password and copies sensitive data.
3 Your hard disk crashes and much of your data is lost permanently.
4 Someone walks into your computer lab and steals the memory chips from all the PCs.
5 Your backup tapes fail to restore properly.
Task 3: Match the text with the correct picture
A B
Web browsers warn you if the
connection is not secure; they
display a message when you
try to send personal
You have to type your user name and password
to assess a locked computer system or
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C D
1 2
3 4
SECURITY AND PRIVACY ON THE INTERNET
There are a lot of benefits from an open system, like the internet, but we are also exposed
to the hackers who break into the computer system just for fun, as well as to steal information or propagate viruses So how do you go about making online transactions secure?
An open padlock in Netscape Communicator indicates the page is not secure; a closed padlock indicates the page is encrypted.
Private networks use a
software and hardware
mechanism called a
“firewall”, to block
unauthorized traffic from
the Internet.
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The question of security is crucial when sending confidential information such as creditcard numbers For example, consider the process of buying a book on the Web You have to typeyour credit card number into an order form which passes from computer to computer on its way tothe online bookstore If one of the intermediary computers is infiltrated by hackers, your data can
be copied It is difficult to say how often this happens, but it’s technically possible To avoidrisks, you should set all security alerts to high on your Web browser, Netscape Communicator,and Internet Explorer display a lock when the Web page is secure and allow you to disable ordelete “cookies” If you use online bank services, make sure your bank uses digital certificates Apopular security standard is SET (security electronic transactions)
Similarly, as your email message travels across the net, it is copied temporarily on manycomputers in between This means it can be read by unscrupulous people who illegally entercomputer systems The only way to protect a message is to put it on a sort of “envelope”, that is,
to encode it with some form of encryption A system designed to send email privately is PrettyGood Privacy, a freeware program written by Phil Zimmerman
Private networks connected to the Internet can be attacked by intruders who attempt totake valuable information such as Social Security numbers, bank accounts, or research andbusiness reports To protect crucial data, companies hire security consultants who analyze therisks and provide security solutions The most common methods of protection are passwords foraccess control, encryption and decryption system, and firewalls
Viruses can enter a PC through files from disks, the Internet, or bulletin board systems Ifyou want to protect your system, don’t open email attachments for strangers and take care whendownloading files from the Web (Plain text email alone can’t pass a virus) Remember also toupdate your anti-virus software as often as possible, since new viruses are being created all thetime
Task 4: Match the word in A with its corresponding definition in B
Hacker Files that identify user and Web servers on the net, like digital identification
Cookies The process of encoding data so that unauthorized users can’t read them
Certificates A person who obtains unauthorized access to computer data
Encryption The process of decoding encrypted data transmitted to you
Decryption Small files used by Web servers to know if you have visited their site before
Task 5: Match the paragraph with its corresponding main idea
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Paragraph 1 Email privacyParagraph 2 Network security Paragraph 3 Introduction Paragraph 4 Virus protectionParagraph 5 Security on the Web
Task 6: Complete the sentence by using a term from the text
1 Users have to enter a p………to gain access to a network
2 You can download a lot of f……… or public domain programs from the internet.
3 Hundreds of h……… break into computer systems every year.
4 A computer v………can infect your files and corrupt your hard disk.
5 The process of encoding data so that unauthorized users can’t read the data is known as
e………
6 A f………is a device which allows limited access to an internal network from the
internet
7 You can include an a……….as part of your email massage.
8 This company uses d………techniques to decode (or decipher) secret data.
Task 7: Answer the questions
1 Why is security so important on the Internet?
2 What security features are offered by Netscape Communicator and Internet Explorer?
3 What security standard is used by most banks to make online transactions secure?
4 How can we protect and keep our email private?
5 What methods are used by companies to make internal networks secure?
6 Which ways can a virus enter a computer system?
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UNIT 3
ONLINE SERVICES
Task 1: Answer the questions
What online services are available in your country?
What kind of facilities do online services provide?
ONLINE SERVICES
I’m frequently asked which online service is “best”, but the answer is there is no best.Rating a particular service over another is entirely subjective Price is important to some people,while the number of files available for download is important to others Because of these and somany other different judgments, there can be no absolute It all comes down to individual needsand preferences
Still, users tend to be fiercely loyal to their “home” online service – which is usually thefirst online service they ever used They tend to judge all other online services based on this first
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service – often preventing themselves from seeing the advantages of a specific service For mypart, I like all the services I use and I’m on two dozen
Each offers one or more products or features that either do not exist elsewhere or aresuperior to the same features on other services And I’ve a really subjective reason for being onone service – I use it to send monthly articles to magazines in Japan
So, the real answer to the question is simple: the best online service is the service that haswhat you want and is easy for you to use The point? Keep an open mind when checking out anonline service Judge it based on what it offers and how it meets your needs – not in comparison
to what you’re used to using (It takes a couple of sessions to shake preconceived notions of what
an online service “should” be.)
Eventually, we’re all going to be interlinked, no matter which service we use, in whatDIALOG’s Richard Ream calls a “network or networks”
Until then, most of us have to go to more than one service to find everything we need
And now, the news…
BIX
TAB Book Clubs Online: You’ve
probably seen magazines ads for The
Computer Book Club and The
Computer Professionals’ Book
Society These are sponsored by TAB
Books This division of McGraw – Hill
(BIX’s parent company) is now online
on BIX, taking orders and answering
questions from members and
prospective members The club
conference is moderated by Tammy
Ray and Jeanette Shearer You can
Minitel Link to Compuserve
Compuserve boistered its position
in Europe by making some of itsservices available via France’snational Minitel system in July.French Minitel users have access
to an extra-cost service that isessentially a “limited edition”,English-language version ofCompuserve Among the servicesavailable are software anddatabase downloads Email andmessage-based posting are not
DELPHI
Hobby Group Expands: DELPHI’sHobby Shop special-interest groupcontinues to expand its areas ofinterest The most recent additions
to the database and group topics areAntique Auto, which focuses onclassic vehicles, and Autotech, whereyou can learn about new cars and
Compuserve
Dell Computer Forum: Dell Computer
Corporations has opened a product
support area on Compuserve The
Dell area is part of the PC Vendor D
Forum Type GO DELL or GO PCVEND
to take a look
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Task 2: Answer the questions
1 Do you think the English in the text is
A general magazine for young people?
A general magazine for adults?
An online bulletin board?
The science page of a newspaper?
Give reasons for your choice
Task 3: Make these words negative by adding the appropriate prefix from those given below The first one has been done for you.
dis-infrequently …loyal …advantages …specific
…like …real …probably …available
Task 4: Match the word in A with its synonym in B
But UltimatelyWhile HoweverStill WhereasFor my part NeverthelessEventually PersonallyUntil then Meanwhile
Task 5: Decide whether the following statements are True or False, and correct the false ones
1 Most people choose an online service because of the price or the number of available files.
2 Everybody has one service which he/she likes more than all the others.
3 You should judge each service according to whether it is better or worse overall than the
service you are currently using
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4 Eventually, all services will be accessible from the service you are using.
5 McGraw-Hill is owned by BIX.
6 Tammy Ray and Jeanette Shearer think the BIX service is average.
7 French Minitel users have free access to an English-language version of Compuserve,
although they cannot use the email facility
8 DELPHI’s Hobby Shop now has two special-interest areas: one on classic vehicles, and
one on new cars and technology
Task 6: Fill in the gaps in this summary of the first part of the text Each clue is an anagram The first and last letters are correct.
In my opinion, there is no single “best” online service The choice depends onyour………(prltacuair) needs and references Most users have their own
……….(ftrvaioue), but this can prevent them from seeing the………
(agtvndaaes) of their services Each one offers something which is either……… (uqinue)
to that service, or which is ……….(bteetr) than the same features on other services
So, when considering an online service, decide whether its features……….(cosrernopd) to what you need Until all services are……….(iilktneernd), most of us willneed to……… (cunoitne) using more than one
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UNIT 4
LEGAL FORMS OF ORGANIZATIONS
This lesson deals with three basic forms of business ownership Two different approachesare used to present this text First, the types of business ownership are described using definitionsand explanations Second, the different forms of business ownership are compared and contrasted.The advantages and disadvantages of each form are included in the comparison and contrast
HOW A BUSINESS IS ORGANIZED?
In business there are many legal forms of organization The form of organization meansthe type of ownership The main differences between the types of ownership are in their ability toraise capital, the size and continuity of the enterprise, the disposition of profits, and the legalobligations of in the event of bankruptcy Each form has certain advantages and disadvantages.The three forms discussed in this lesson are the sole proprietorship, the partnership and thecorporation
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The form which acquires the least amount of capital and personnel is the soleproprietorship Sole means single, and the proprietor is the owner Therefore, a sole proprietor is abusiness owned and operated by a single person This single person can start a business by simplypurchasing the necessary goods and equipment and opening up shop There are very fewgovernment and legal regulations to comply with The sole proprietor owns all the business assets,makes all the decisions, takes all the risks and keeps all the profits of the business The businessitself pays no tax, but the owner must pay personal income taxes on his profits If a sole proprietor
is successful, he takes a lot of personal satisfaction in his enterprise If he is not successful and hewants to close his business and start a new one, he simply has to sell his inventory and equipment,pay his bills, close up shop, and begin a new activity
There are good and bad aspects to the sole proprietorship form of organization The soleproprietor has the opportunity to be successful, but he also runs the risk of financial ruin The soleproprietor owns all the assets of the business, but he also has to supply all the capital, and hisability to borrow is limited to his personal amount of money and wealth The owner enjoys hisfreedom to make decisions about his business, but he alone takes the responsibility for incorrectchoices He has the right to keep all the profit of the business However, if he suffers a loss, hestill owns all the debts, and his legal liability to pay them may be more than his investment in thebusiness He must use his personal property to settle the debts of the business if he goes bankrupt
A partnership presents a completely different set of problems A partnership consists oftwo or more people who share the ownership of a business A partnership should begin with alegal agreement covering the various aspects of the business Two important items that need to becovered are exactly which assets each partner is contributing, as well as how the partnership can
be changed or terminated This agreement is called the articles of co-partnership It is not ascomplicated as the articles of incorporation However, the articles of co-partnership indicate thatthe initiation of a partnership is not as easy as the beginning of a sole proprietorship Partners arelike sole proprietors because they own all the assets, owe all the debts, make the decisions, andshare the profits They pay only personal income taxes on their share of the profits If each partnerhas a different expertise in an important business area, the partnership has an advantage over thesole proprietorship in managerial ability
A partnership usually has more capital than a sole proprietorship In a partnership thepersonal wealth of all the partners can be used to secure loans and credit This personal wealthmay also be used to settle the debts of the business Like the sole proprietorship, the partnershiphas unlimited financial liability in the event of bankruptcy Unlike the sole proprietorship, whereone owner-manager makes all the decisions, the smooth operation of a partnership requires bothowners to agree on management policy If a partnership wished to cease doing business, theowners would have to agree on how to dissolve it
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The corporation is very different from both a sole proprietorship and a partnership First ofall, the corporation is a legal entity which is chattered by the state in which it is incorporated Inother words, a Los Angeles corporation is incorporated under the laws of the State of California
As a legal entity, the corporation can own property that is not the personal wealth of its owners Italso means that the corporation can enter into business agreements on its own Forming acorporation is not easy There are many legal procedures to follow A corporation raises capital in
a different way from the proprietorship or partnership The ownership of the corporation isdivided into shares of stocks One stockholder or shareowner can buy, sell and trade his shareswithout permission from the other owners A corporation can raise large amount of capital byselling shares of stock The stock owners vote for a board of directors who hire a president orchief executive officer to run the company The board of directors also decides what to do withthe corporation’s profits It usually retains part of the profits for reinvestment in the company anddistributes the other part to the shareholders as dividends Unlike the sole proprietorship and thepartnership, the liability of a corporation is limited to the value of the assets of the company Thepersonal wealth of the stockholders cannot be used to pay debts in case of bankruptcy.Corporations do not operate like other forms of business because the ownership can be easilytransferred through stock sales
There are favorable and unfavorable points to consider with regard to the corporate form
of ownership The corporation has access to large amounts of capital and has limited liability, butits activities are closely monitored by government agencies The Securities and ExchangeCommission regulates the stock trades A large corporation has a lot of managers who canspecialize in different aspects of the business However, the corporation must have goodorganization for efficient operation Another important disadvantage of the corporation is that itsprofits are taxed twice The profits are taxed once as corporate profits and then the individualstockholders pay personal income taxes on their dividends
The three types of legal organization discussed in this lesson show different possibilitiesand limitations The best form for a particular enterprise depends on its capital requirements andthe number of owners
A PHONETICS
Choose the word whose underlined part is pronounced differently from that of the others
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II Choose the word that has the closest meaning to the underlined word
1 The sole proprietor is liable for all the debts of his enterprise He owns all the assets, but he
owns all the liabilities
A inventory B proprietorship C capital D debts
2 When the sole proprietor stops doing business, he simply sells his inventory and equipment.
A labor B machines for making goods C debts D profits
3 A partnership does not have some of the disadvantages of a sole proprietorship, but it shares
some similarities
A benefits B problems C agreement D association
4 If the owners of a partnership wished to stop doing business, both managers would have to
agree on how to dissolve the partnership
A partners B corporations C shops D profits
C READING COMPREHENSION
I Skim the reading and give appropriate paragraphs to the following main ideas
the corporation in comparison with the sole proprietor and the partnership
advantages and disadvantages of the sole proprietor
choices of the types of ownership
types of ownership
advantages and disadvantages of the corporation
the partnership
the sole proprietorship
advantages and disadvantages of the partnership
II Answer the questions
1 What are types of ownership?
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………
2 What are the main differences between the types of ownership? ………
3 What are the similarities and differences between the sole proprietor and the partnership? ………
D WRITING Write a paragraph about the corporation ………
………
………
………
………
………
………
E TRANSLATION Translate into English 1 Ông ta được giao giữ toàn bộ lợi tức doanh nghiệp. ………
2 Tài sản riêng của ông ta có thể dùng để thanh toán nợ nần. ………
3 Vị nghiệp chủ quyết định mọi vấn đề tài chính riêng của mình. ………
4 Hầu hết các nhà cung cấp muốn ông quyết toán trong vòng 30 ngày. ………
GLOSSARY
3 Articles of co-partnership (n): điều lệ hợp doanh
4 Articles of incorporation (n): điều lệ công ty
6 Board of directors (n): ban quản trị
7 Chief executive officer (CEO) (n): giám đốc công ty, người điều hành cao nhất
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15 Expertise (n): kiến thức hoặc khả năng chuyên môn
16 Financial (adj.): thuộc tài chính
19 Liability (n): khoản nợ, khoản trách nhiệm pháp lý
22 Partnership (n): doanh nghiệp hợp doanh
24 Proprietorship (n): quyền làm chủ doanh nghiệp nhỏ
26 Satisfaction (n): sự hài lòng, mãn nguyện
27 Securities and Exchange Commission (SEC) (n): Hội đồng giám sát chứng khoán và
giao dịch thương mại
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UNIT 5
PRODUCTI ON
This lesson deals with two methods of production They have opposite methods andpurposes The meanings of the words used to describe each method production contrast as sharply
as the methods themselves; for example, continuous as opposed to intermittent While reading the
students should be aware of general ideas incorporated in topic sentences and the examples thatfollow By concentrating on the two methods of production and systematizing ideas according toeach of the methods, students are encouraged to develop their analytical skills and increasecomprehension and retention
THE TWO BASIC METHODS OF PRODUCTION
Production is the process of making something of value It means bringing togethermaterials, machinery, and workers to make goods Production changes the value of materials bychanging their form The process of production makes the materials more valuable
There are four types of production: analysis, synthesis, extraction, and fabrication.Analysis is the process of separating a raw material in several parts For example, in petroleum
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refining, oil is separated in gasoline, kerosene, fuel oil, asphalt, and many other products.Synthesis is the process of putting together two or more raw materials into one finished products.For example, glass is made by joining together lime, soda, potash, and other chemicals All of theraw materials used in production are extracted from the land, the sea, or the air Mining andpetroleum production extract raw materials from the earth Fish and minerals such as magnesium,sodium, chlorine, and bromine are extracted from the sea Nitrogen and oxygen are extracted fromthe air Fabrication is the process of making products of more value from already manufacturedmaterials The materials may be cut, machined, woven, knitted, shaped, or put together with othermaterials For example, cloth is made from thread Automobiles are made from alreadymanufactured parts
There are two basic methods of production: intermittent and continuous In intermittentproduction, several of the same types of items are produced Then production of that item stopsand production of another item begins Labor and equipment work on one particular product for ashort period of time The company makes a product either because a customer has ordered it orbecause they think the customer will order it Machinery is set up and adjusted for a specific job
With intermittent production many designs and styles are possible, so a large variety ofgoods can be produced The design can easily be changed to suit each individual customer Whengoods are made to customer specifications, they are called custom-made Only a limited number,perhaps only one, of each specification are made Therefore, automatic machines have limiteduse, and increased labor is necessary, which makes custom-made goods expensive However, one
of the reasons that custom-made goods are popular is that they are expensive; if someone ownsone, it shows that he has money
In continuous production, labor and equipment work continuously, making one type ofproduct for a long period of time The company buys specialized machinery, or they adjust theirmachinery for a production period that will probably continue for months The products must bestandardized and the volume must be large The assembly line method of manufacturing is oneway of using continuous production Coordination is more necessary in continuous productionthan in intermittent production, because if there is a break at any step in production, it can halt thewhole process
Continuous production is generally less flexible than intermittent production.Standardization is necessary in order to get the greatest benefit from continuous production.Therefore, there can be only a few models, styles, and designs To say it another way, if thenumber of models and styles of a products increases, the volume must also increase in order touse the continuous process efficiently Because the major automobile manufacturers have a verylarge volume of production, they can produce several body designs, engine sizes, and style seriesand still use the continuous process of manufacturing In addition to car manufacturers, many
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other factories use continuous production For example, it is used in making consumer appliances,producing cement, making paper, refining sugar, refining petroleum, weaving cloth, and grindinggrain
Standard goods are generally manufactured using the continuous type of productionprocess They are made to the manufacturer’s specifications, not the customer’s In order to sellgoods, it is necessary to make items that the customers will buy; however, standard goods aremade not for a specific customer, but for a group of customers We can say that standard designtries to please the average taste When a large volume of each design is produced, as a practicalmatter it is necessary to make goods to suit the average customer Standard goods usually carrythe manufacturer’s brand and are advertised over a large area to reach many customers
In deciding on the type of production to use in a plant, the important factors are volumeand the number of models and designs Intermittent production can be used if volume is small andthere are many designs Often a company begins production with job lots using intermittentproduction As the company grows and the volume increases, it is more efficient to usecontinuous production
A PHONETICS
Choose the word whose underlined part is pronounced differently from that of the others
e starting and stopping, not operating continuously
f products designed for the general market, not for a certain customer
g materials in their natural state
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1 In continuous production labor and equipment work continuously making one type of product.
A unit B style C job D material
2 Products must be standardized and the volume must be large.
A number of units B loudness C cost D efficiency
3 Standardization is necessary in order to get the greatest benefit from continuous production.
A advantage B output C series D style
4 Continuous production is used in making consumer appliances.
A for the home B industrial C expensive D customer
D WRITING
I Make sentences from cues
1 when / job / finished / machinery / reset / produce different items / fill another order.
II Write a paragraph
Using the list of differences from the reading comprehension exercise, write a paragraphcontrasting the production of custom and standard goods
………
………
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Translate into English
1 Máy này dùng phim chuẩn 35 mm.
12 Intermittent (adj.): không liên tục, gián đoạn
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Both student and businessman are likely to enter into situations where they will need todeal with personnel either as employees or employers This lesson begins with a definition ofpersonnel and its importance to business The following paragraphs discuss internal and externalrecruitment, the preparation of the job description, the method of selecting applicants, and thedevelopment of personal policies
THE IMPORTANCE AND ROLE OF PERSONNEL DEPARTMENT
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Personnel refers to all the people who work for a firm Most large companies have specialpersonnel departments which are responsible for employer-employee relations The personneldepartment is a staff department, which means that it is not directly involved with production, butthat it provides a service to the managers The most important services which the personneldepartment provides are recruiting, that is, finding new workers or managers for the company,deciding which applicants are most suitable for employment by the firm, and developing andimplementing personnel policies and procedures for the benefit of the company as well as theemployees
Most businesses continually need to recruit good personnel to replace workers who retire
or quit and to fill new jobs created when the company expands After management has determinedthe goals of the company and the positions needed, the personnel department must find qualifiedpeople to fill those positions Depending upon the management policy and the nature of theposition, recruiting may be done internally or externally Internal recruitment means that theperson chosen for the position is selected from the current employees of the company This iseither by promotion or transfer Promotion means an employee receives a job with more authorityand responsibility than his present job The employee usually expects to receive an increase insalary along with the new position A transfer refers to a job or department change for a worker Atransfer without promotion is a lateral transfer It may involve different working conditions ordifferent hours Company that recruit internally often promote internally, which means that themanagers have worked their way up from lower positions It may also mean that the companymay hire new employees only at lower positions
External recruitment means that the company is looking for new employees from outsidethe firm All companies do some type of external recruitment If they are looking for employeeswith special training or education, they will often recruit at university campuses They makearrangements with the placement office at the campus to interview graduating students.Sometimes they are seeking top level managers who they will recruit from other firms, often formtheir competitors Other methods of recruiting involve the use of advertising in newspapers andprofessional publications, and even paying a fee or commission to an executive placement service
Most recruiting involves a job announcement containing a description of the job Thepersonnel department produces a formal job description If the firm is not well known, the jobdescription may begin with some basic information about the company and its products This isusually followed by the title of the position the company wants to fill, for example, Senior DesignEngineer or Vice President in charge of Finance Then the duties and responsibilities of the jobare given, as well as where that position fits in the organizational charts (that is, who the personreports to and who the person supervises) Next appear the qualifications for the job, such as the