1.

Referencing Task
a. Andrew Bartel and his colleagues (Caroline Ichniowski and Karel Shaw)
wrote an article for the Quarterly Journal of Economics entitled How does
information technology affect productivity? Plant level comparison of
product innovation, process improvement, and worker skills. It was
published in 2007 in volume 122 on pages 1721-58.

Bartel, A., C. Ichniowski and K. Shaw, 2007. How does information

technology affect productivity? Plant level comparison of product
innovation, process improvement, and worker skills. Quarterly Journal of
Economics, 122, (1721-58)

b. How much does Management matter was the title of a book published
in Mimeo by Stanford University in 2009. It was written by N., Bloom,
Eifert, B., Mahajan, A., McKenzie, D., Roberts, J.

Bloom, N. et al., 2009. How much does Management matter. Mimeo:

Stanford University

c. Zaid Griliches and Joanne Mairesse were co-authors of an NBER working

paper (No.5067) in 1995. It was called Production functions; the search for
identification.

Griliches, Z. and J. Mairesse, 1995. Production functions: the search for

identification [Online]. The National Bureau of Economic Research working
paper series no. 5067. Cambridge: NBER Available at:
http://www.nber.org/papers/w5067.pdf [Accessed: 5 May 2017]

2. Paraphrasing
Read the original sentences below and using your own words paraphrase
the extracts

1. On the one hand, better managed firms should be able to reduce

energy use through more efficient production techniques. On the
other hand, better management might achieve higher productivity
through more intensive capital utilisation which may lead to higher
energy usage.

While a reduction in energy usage can be achieved through the

optimization of more efficient production methods within companies
with management of a higher standard, these firms might find
themselves operating in excess of the normal energy consumption
due to higher capital utilization to increase productivity.

2. Senior management may not be informed about best energy

practices and junior managers performance incentives may be too
narrow to cover energy efficiency. Another problem is that the budgets
 for energy improvement projects often fall across multiple
departments for example the costs arise in maintenance and the
benefits in operations, so that incentives are not aligned. And the
returns to energy saving projects can also be long run and risky, so
that excessively short-term narrow targets can discourage managers
pursuing these ideas.

Not only might reports on optimum energy applications not be

presented to senior manager, but the limits in junior managers
narrow performance-linked targets might also thwart energy
improvement attempts. In addition, most project managers are used
to cost overruns of energy efficiency projects. To illustrate, projects
can run over budget when maintenance costs and operating expenses
abruptly accelerates, giving rise to unaligned incentives. Last but not
least, managers may avoid energy optimization plans, as to be able to
reap the benefits from these risky projects often requires long-term
efforts, which can counter with their narrow incentives in the short
term.

3. Error Correction

Error Correction

The Paragraph below from text 1 contains 6 grammar or spelling

mistakes. Underline them in the text below and write the
corrections underneath.

It is clear that all of these informational and principalagent problems,

which can block the adoption of energy efficient technologies, would be
much less severely in a firm with good management. In well-managed
firms effective monitoring would mean energy saving ideas are picked up
and analysed, appropriate targets would mean that managers are more
focused on broader long-run goals, and aligned incentives would promote
employees to operate across departments in the firm. Indeed, this is
consistant with the results in De Canio and Watkins (1998) who report that
more profitable and faster growing firms those that we find to be better
managed in our data do indeed appeared much more likely to adopt
energy saving initiatives.

Our results also suggest that policies aimed on improving management

practices such as encouraging competition, reducing labour-market
regulations and eliminating tax incentives for family ownership could
also be associated with improved environmental outcomes. 5 One example
supporting this concept is the staggering energy inefficiency of the (old)
Soviet block factories. These firms did not face product market
competition, so had little incentive economise on energy use. This could
be particularly true in developing countries where management practices
and energy efficiency are often particularly poor.6
Corrections:

1. severely => severe

2. consistant => consistent

3. appeared => appear

4. on => at

5. block => bloc

6. incentive economise => incentive to economise