Contents

Part 1 lntroduction to Management

Chapter 1 Management and Organizations 2 WhyAreManagerslmpol1ant? 4

Who Are Managers and Where Do They Work? 5 WI'IO'<O M~$

l'lhou! DoMa-Wor\<.?6

What Do Managers Do"> 7 ....._.,_1Fun<:l""'s9 M"'tzo.<g'o M•"->MflolesO<MioCoot......,.,..-y-oiM""Oging 10

....._.,_, Sk .. ll

How lstheManager'sJobChanging? 13 lmpo<~aneo,;evso.,.,....,ll>tMa~··Jol>••

lmporU>nc• oi Soc.a! Mod<o lolhe~"sJOOIS

lmpo11oOC<Iollnoovatooo l o VlO Maoag«"s Job 16

lmpo.lan<e<liSustainot>iOiy iOiheMana¡je<"sJob 16

WhyStudyManagement? 17

Flit ,_v.:.;o..¡TI>o Worl<ing - .. 20251

l OI"s 0 0IR€Al ~

<.-rWI>oM-•Oi~ 1 u-.ws.ms" l t <"s Gt <Rf.Ol IJ

Chapter Summary by Learning Outcomes 19 AeviewandOiscussionOuestions 20

Preparingfor.MyCareer 20

Case Application 1: Building a Bener Boss 23

CaseApplication2:Sa~ingtheWorld 24

Management History Module 26 EarlyManagement 26

ClassicaiApproach 28

BehavioraiApproach 31

OuantitativeApproach 33

ContemporaryApproaches 34

Chapter 2 Understanding Management's Conted: Constraints andChallenges 40 TheManager:OmnipotentorSymbolic? 4:<'

T"-Omn9)t<•ntv- 42 T"-Sym-V-43

Th~=~~=en:~ Constra i nt sand Challenges 44

T .. Oe<nog,_ E __ ..

Howt .. El<l<'<naiEn..._tAite<I<M>_. 47

OrganizationaiCulture:ConstraintsandChallenges 51 """>11S0og>"'zM"""'ICult""'?51

-.cun,....ComHF«>m3t>dHownCom.....es. 52

HowEmpto:ty..,.t.e><nc..An55

CurrentlssuesinOrganizationaiCulture 58 C<Ntongon..._a"""Cut"""58 C<Nt.ngaC..•t.,..,....·Res""""""Cut"""59 Sp.tlt ... tya(l(l0og»zMoonOICult ... e59

SPOT<IGHT'~·t W<H"• OG FU!u,. Visoon¡ow. o;.-.,o l'l>ooE..- 45

lOt~ GO< m:'Al 08

l.- WI>c MMoao;~~MM<at.o•ioT6yo<,. 49

Chapter Summary by Learning Outcomes 61

ReviewandOiscussionOuestions 62 Preparingfor:MyCareer 6Z CaseApplicationt:Going toExtremes 65 CaseApplication2:NotSold0ut 66

Management Practice 68 A Manager's Oilemma 66

ContinuingCase-Starbucks 68

Part 2 lntegrative Manageriallssues

Chapter3 ManaginginaGiobat Environment

What 'sYourGiobaiPerspective? 75 UnderstandingtheGtobaiEnvironment 76

Rej¡oonatTo-.gAIIOn«$ 76 GlobaiTo;>OoMO<I\OIIo$II'IS79

()o;ng Busin&ss Globally 81 ~T.-01-~11

-~Go---N Managiog in a Global EnWonment 83 Tho~-IJ

Gl<lt>al~"'"""" .............. fi c..__oo~•Gioi>OIWo<~lotc• &9

SPOU>OHT:~a1Wol•1l

,_ ....., .. _.o.-·I-•Noofl75 ()AfAPOINT$ 10

Chapter Summary by Learning Outcomes 91

Review andOiSCU$Sion0o.oestions 92 Preparing for.MyCareer 92

Case Application 1: Dirty Uttle Se<;ret 95

Case Application 2: Global Stumble 96

Chapter4 Managing Diversity 98

Diversity \ 01 100 \Yna11o\\1oo1oQiaocaO.V..O<!y? 100 Why ls ManagongWotUO!ca0o ... l<lySolmQOo10tl(?102

TheChangingWorkplace 104 cn.aco .... oocloii,.U.S. Poo>ull"'"105 ......... .-.-..Giol>al-~7106

Typesof Worio.placeDivet$ity 107

"">M

GUITS.....O~-Goonclat~c~at~Wy113

o. ... '-o1~1·· ChP~~n~:nagingDiversity 11 4

G~ao•c->g 111

Workplace Diversitylnitia tives 117 T,_Le¡¡aiAsp..-;1 oiWo<~p&aea 0......., 117

TopM_Com-roi,_,100.V..I<Iy11l

-"'11111 ~Siolsf<WWliJIII

E....,_lluouou~ll~

· - WfiOM- ODdfO<en<O j t>. R""""AOO ... !16

Chapler Summary by Learning Outcomes 121 ReviewandDiscussionOuestions 122 Preparinglor:MyCareer 122

CaseApplication1:FromToptoBonom 125

Case Application 2: Women in Management al Deutsche Telekom

Chapter 5 Managing Social Responsibility and Ethics

WhatlsSociaiResponsibility? 130 F<omOblogahons1oflespono..._..loA_.,.ty 130 Sl>ouldO<g.,.,..,.,....a.Soc .. llyln-?132

GreenManagementandSuslainability 133 Howo.g..r.>a1.,....GoG<-134 E>-oogG«Ht<<M-IA<:IoOt .. 135

ManagersandEthicaiBehavior 136 FaciOtSThatOe1e<mneEt"'<alandUnet"'<oiBeho""' 136 Et"'<s..,..,lnle<nat>ona!Coot~•t 139

EncouragingEthicaiBehavior 141 E~Solecloon14~

C<><!esO!Et"'<•ondDec_,AuiM142

JoOGooiSonciP0<10tm""""AW<•,sa•1•• Et"'<s T•a"*"9105 ,_...,...,,Soc ... Au<l,ts105

Prot~we~145

SociaiResponsibililyandElhicslssuesinToday"sWorld M>n>g<ngE-ollat>$eSandSoc ... _()obty146

SPOTLI<lHT: M...,.go••t W ... 128

U.,., WfiOM- 0 0.tfOI<I<'>U j Y><>nC- 13-0

Chapter Summary by Learning Outcomes 149

ReviewandDiscussionOuestions 150

Preparingfor:MyCareer 150

Case Applicalion 1: A Bener Tomorrow 154 Case Application 2: Lessons lrom Lehman Brothers: Will We Everlearn? 154

Management Practice 156 A Manager"$ Dilemma 156

GlobaiSense 156

ContinuingCase-Starbucks 156

Part 3 Decision Making and Change

Chapter 6 Managers as Oecision Makers 160 TheOecision-MakingProeess 162

S~e~>1:-.oily aProl>lemt62

S~e~>2:k!entityllecisiooC<iloria ~~

S~e~>3:AI<><.>to~o t<>tr>tCri«<riotS4

Stop •:DewlopAIIo<J~aliYHI S4

S~e~>5:MatyMAt1"'""'""'S4 $!ei)6:Soleci.,.Atl...,..t;w,1S4

S~e~>7:_,tr>t_.. .. ..,,., ,65

$!ei)8:EvaluatellecisiooEffoct-16S

ManagersMakingDecisions 165 MaltingO.C....,.,.: Ralionololyl66

Malting0.C...,....:-Ra1~167

MaltingDoeeosjans:Thollolo <>I"'!Uitioo167

Mat<<>g~:Thol\olo <>IE'"""'--Base<l__, 1611

Types of Decisions and Decision-Making Condrtions 169 Ty¡>e>OfO.C;o¡o,.\69

O.Coo;on·MaltingCon<:ldóon$171

Decision-MakingStyles 173 l<>eat-~St)o!OProfilol7•

DecisiDn-M>IOO¡JBiasesondEmnll'

~O!M..._..,DecisiDn-">g 1 75

Effective Decision Making in Today's Wor1d Guidel<>eslofEff......,DecisiDnM31<;,g 171

o..ign~ondDecisiDnMal«>g178

SPOrLIGIIr.~a!Worl<160

<onGotREAL 1&9 F"'"'"ViSioni M.,.O< MOCIW>o1 171

L-WI'to-ao;~ 1 Md<llaiiO.I'foO- 113 DATAPOIIfl$11$

Chapter Summary by Learning Outcomes 179 ReviewandDiscussionauestions 180 Preparingfor: MyCareer 180 CaseApplicalion1 : TheBusinessofBaseball 183 CaseApplicalion2:UnderwaterChaos 184

Chapter 7 Managing Change and lnnovation 186 TheChangeProcess 188

TwoV;ewsO!thoCIIOt>goOProcess 189

TypesofOrganizationaiChange 191 Whooos~••.,.,.Chaf>9o?191

ly¡>e>O!Cftange 191

ManagingResistan<:etoChange 194 W>yDoPeoplofln,$!~?194

l ecMoQ ... Iofl\educ"''JRM"Ion<:4lo~ l 95

Contemporary lsStJe$ in Managing ChariQe 196

~~~·~

~-·· ~~~~201

S1imulatinglnnovalion 202 c....---203 S1~r<1Nu<l'"""'J_a1 .... 203 SW<I"'>I,_203

---Oeo.ogn~2001

SI'OTUGMI':~ arwo.•r llll

'"',..,....., 1 l.d<-LOftllt.,..~ 1!C'

D.<TAPOWfS 1M

·---·~IRa1MT ... J04

Chapler Summary by Learning Outcomes 207 Review andOiscussionOuestions 208 Preparinglor.MyCareer 208 Case Application 1: In search olthe Next Big Thing Case Application 2: Woñ<plaee Stress Can Kili 21 2 ManagementPractice 214 A Manager's Oilemma 214 GlobaiSense 214 ContlnuingCase-Starb\lcks 214

Part 4 Planning and Control

Chap ter 8 Foundations of Planning 218 The WhatandWhyoiPianning 220

WNOIJI'Iao>non¡J7 no WhrDr>~f'laol7:120

f'lao>non¡Jr<1Pwlormrce221

Goals andPians 221

SeningGoalsandOevelopingPtans "-oo.cn.ttoSen"''IGoals 2N ~PiaM 221

~tof'lanr>onll228

ContemporarylssuesinPianning 229 _C.......,._.PianE~n~Enworwnooto?229

-C..---usee-ai~?UO

$1'01'UG><I': __ .. _211

unGer R(.O(. :en

Chap\er Summary by Learning Outcomes 231 ReviewandOiscussionOuestions 232

Preparingfor.MyCareer 232 Case Application 1: Funny Name-Not-So-Funny Effect

CaseApplication2:Shifting0irection 236

Chapter 9 Strategic Management 238

StrategicManagement 240 Whal lo SI<ologó<: M-'? 240

Whyls SI<ai"'!"' M_ I ,.,....,I? 241

TheStrategicManagemen\Process 242 Slop l : l<lenldyong t .. ~""'"s c......m M.ssion. Goals.a'ld StratogHOS 242

Stop2:~an blet~Atlalyoos242

Stt<>3:0oon¡¡anlntomaliii"IMy$<o 243

Stt<>O: FoomuoatW>g So•ooegtos 2"'-l

Stop5:"""'""'""ong St<ategiM 244 Stop6; Evalualng""'-"'o 2«

CorporateStrategies 244 WhOII$Coo-po..a"' S1<01t-gy? 245

Whal "'o ii>O T)'I)HO!Co<wao<t St<at"'l)'? 245 1-!ow M Coo-po..o"' Sboteg;.. Managea? 247

CompetitiveStrategies 247 r ""- "'Compoi•"'•MY•ntago 24e Cl">ooon¡¡ a Como><tt~;.,., So•ooegy 249

CurrentStrategicManagemen\lssues 250 Tho- fO< $trat"'!"'le~2S1

ThoNee<I IO< Strat"'!"' Fie>. ,,..ty2~

,.,....,t O<yatvzatoonaiStratogHOS fO<T""'-y"s E-·~o2SJ

SI'O TLIGMr.lt .. ,.gM OI WC<* 2JIJ <fll Go<ROlZ44 L- WitoMoa. o DiiiO.-.nce\ C4'01To.,. 2<6

Chapter Summary by Learning Outcomes

ReviewandDiscussionOuestions 257 Preparingfor:MyCareer 257

CaseApplication t:FastFashion 261

CaseApplicat ion2: RewindandReplay 262

Chapter 1 O Managerial Controls 264

WhatlsControl lingandWhytslttmportant? 266 The ControiProcess 267

$1opi : Me.U..-"'11AciVOI Pe<IO<"'"""o 268

Siopl. Comlw"''!AciVOI Pe<IO<"'"""o~t i .. Start<laf<l 2&9 Stop3: Taluttg M>n"9"'oa1 Act""' 270

ControllingforOrganizationalandEmptoyeePerlormance 271 """"''' ~'"'"""' ' Pe<-1"""""""? 271

-"'~-~71 c...-.ror~-- ~73

Tools for Measwing Or{J811i~alional Perlormanee 274 ~~-~~15

Contemporary lssuesinControl """"""~~ Cot>l<OISiooC<Oss-c..tl"'oiDdl....-.:nonciGiol>oiTI.ornoól 280

Cot>l<OIO'ogCus-lniO<a<:!"""'21J$

0cwll0"~0~288

V'OJVGifr..._ .. __

<otl~MM.u•

l.fll~MM. Zi'Ofi

::-~-:·- 1 - .... Z1'J

Chapter Summary by Learning Outcomes 287

Relliew and Discussion Questions 286 Preparing for.MyCareer 286 Case Application 1: Doopwater in Qeep Trouble 291

Case Applicalion 2: Baggage Bh,mde~ and Wonders 292

Planning and Control Techniques Module 294 Te<:hniquesforAssessing theEnvironmenl 294

TechniquesforAIIocatingResources 299

Contempora.ry Planning and Control Tectlniques 306

Managing Opflrations Module 309 The RoleofOperationsManagement 310 What ls Value Chain Management and Why ts 1t Importan!? 312

Whatls Value Chain Management? 313

Managing Operations Using Value Chaifl Management 314 CurrentlssuesinManagingOperations 318

Part 4 Management Practice 324 A Manager's Dilemma 324

GlobaiSense 324

ContinuingCase -Starbucks 324

Part 5 Organizing

Chapter 11 Basic Organizational Design 330 DesigningOrganizationaiStructure 332 --= --~ O.....<>ICommor><l :)3.0

M~hanisticandOrganicSt ructu res 342 ContingencyFactorsAffectingStructuratChoice 343

S!ral"'l'fondSINC!ute 343 SOuondSif\IC1v<•343 Teoi'V>OIO!¡yandS!ru<lute 343 En...,.,_,ool~o;myandS!ru<l.,.344

TraditionatOrganizationatDesigns 345 Só'nl)le $1""''""'345 F...-.cl;ona!S.""'I.,. 345

[);vis;onal$1""''""'345

SP0Tl/GHT:~•IWorl< 33Q

<er~GorRlOAl 338

LN<'O< WhOM-oDo"lf~ J Z~Ru;m;~ 303

Chapter Summary by Learning Outcomes 347 ReviewandDiscussionOuestions 348 Preparinglor:MyCareer 348 CaseApptication t :AskChuck 351 Case Apptication 2: A New Kind of Structure

Chapter 12 Adaptive Organizational Oesign 354 ContemporaryOrganizationatDesigns 356

To..,Sif\IC1...-es ~7

Mo~oxondP~ISINC1""" 3loe

ThoBounci...,.....Orll""'•at"'"$11 Lea<oW'{¡Orgoniioll<ln$300

OrganizingforCottaboration 361 lntema1Coilaborat.,361

FtexibteWorkArrangements 365 TtleoOII'W?lut.ng365

~---ks.fle<M,.,ondJot>SI'>aring 367

Contingent Workforce 368

Today'sOrganizationatDesignChattenges 369 Kft'PO'QEmploy-Coov>eo1t<l36!1

Mo~¡ngGiobaiSI<""Iu,allown 370

SI'OTLIG•mM~'OIWO<~ JS<

:~7:A.J.1 :~O<g.niwioos 3fi()

OATAPO/NTS3tó6

Chapter Summary by Learning Outcomes 371 ReviewandDiscussionOuestions 372 Preparingfor:MyCareer 372 CaseApplicationi:OrganizationaiVolunteers 375 CaseApplication2:TheAnti-Hierarchy 376

Chapter 13 Managing Human Resources 378 TheHumanResourceManagementProcess 380

WllylsHAMirnporlant? 3110

Exltrt\OI FOCIO<SThatAIIKIIIleHAM Pfoc:MS382

ldentifyingandSelectingCompetentEmployees 386 Hvman~oo~387

-~ ProvidingEmployeeswithNeededSkillsandKnowledge 392

Orientatiot>392

E~Trari">g393

Retaining Competen!, High-Perlorming Employees 395 E~~ormar>O<I M-1395

Componsotiot>and8enohls3!15

Contemporary lssues in Managing Human Resources 398 MooagO>gOownsi•O>; m MaoagO\gSe>uaiH .. a<.smet~l 398

M>nago'lg WOñ.-lJtt 6>10net •oo Coni<Oiot>g HR Cosl$402

L.- """'"'•<H • Oirte<oncoi Symo roy~<><3$$

L.,lelerA(M :)92

Fur.x.v-,.;o.,tz•l7-li,. .W<

Chapter Summary by Learning Outcomes 404 ReviewandDiscussionOuestions 405 Preparinglor.MyCareer 405 CaseApplication1:Thinking0utsidetheBox 408 CaseApplication2:SpoWngTalent 409

Managing YourCareerModu/e 411 CareerOpportunitiesinManagement 411

Chapter 14 Managing Teams 416 GroupsandGroupDevelopmenl 418

WllaoiSoGtow? ••8 S109H ofG<owO..olopment418

WoriiGroupPerlormanceandSatislaction 420 ext .. naoCond•""'simpooedoollleG""""42<1 GroupMemot<~ 4l'O

G<ouf>Tas>s427

TurningGroupsintoEffeetiveTeams 428 """"''••Wori<Tom? 428 Typoso/Wori<Toamsm

et."'ongEflOCI"'Wori<Teomt 430

CurrentChallengesinManagingTeams 432 Mooagng~T .. ms432

&.ool<:longTeomSiuls•:J.O IJn<lof>landongSoc;.!N<IIworl<o434

l ....... WI>OM- O Di lfO<.,.;. 1 PoiO< l6ui>Ot 433

Chapter Summary by Learning Outcomes 435 Aeview and Discussion Questions 436 Preparingfor.MyCarwr 436 CaseApplication 1:FarandWide 439 CaseApplication2:737TeamingUpforTakeDff

Part 5 Management Practica 442 A Manager's Dilemma 442

GlobaiSense 442 ConlinuingCase-Starbucks 442

Part 6 Leading

Chapter 15 Understanding Individual Behavio r 446 FocusandGoalsofOrganizationaiBehavior 448

Focu•otOr{¡ao<>zat"""'IBofto.;o.449 GoalsO!Orgaoiul ...... Bel\>..,..49

AttitudesandJobPerformance 450

Jotl""'''"......-.lan<IO<gaoozatoona~C<:onvnil""""452

E~E-'453

All;tudfl onciCoosistency 453

CogM"'Oossooonu"'-Y453

lmplo<OIOO<>Sic<M..--s4S5

Personality 455 MST .. 4~

Ad<l•toonall'e<sooo>~y"'"'!hh• 457

~tyTypos"'[l;~ontCuileo<fl4S9

Emotoonsan<IEmot.,..,.lnl~ 460

~·IOO<>S!O<M.._..4~

Perception 463 r .. ..,.Thot-~083

...... -~""' Shatt<;...to~ .. ~o.- 05$

-""~""' Leaming 466 Op.-~06&

-~.ae7

~·A..._..l001"6CC _ ... ......_. .. Contemporary lssuesinOrganizalionaiBellaYior 469

"'--Gotooo---- 0611 ~~- ..... ~.70

~::-o.......:;.oc.l :---.... f-~· "'ll Chapter Stlmmary by Learning Outcomes 471 ReviewandOiscussionauestions 472 Preparinglor: My Care-er 473 CaseAppllcatlont:GreatPiacetoWork 475 Case Application 2: Odd Couples 476

Chapter 16 Managers and Communication 478 The Nature and functiono!Communication 480

.......... ~ ..... 140

F"""to'IO"'~"""q' Methods ollnterpersonal Communieation 481 ElfectiYe tnterpersonalCommunieation 484 --. .. Cc>mmunotatoon-o...eonw.o .... -.. .as

Organiu.tionalCommunication 487

F---~06& ~ ... ~-~ .. ~~-­~Otoognonc!Communoe-.eo

Informal ion Technology and Communication 492 _,..._,AIIaci0...._..,~.92 __ _......,.AIIactl~•93

Communication lssues in To<lay's Organizations 494

~~- .. .,---~ .... ~--~-·!l!i n...- ... ~ .. c..o-s.n.e. ~ o.t1"'11Empioy.M"""" • • Communoeat"''IEI ... ..,.,t1

SPOTLIGH,.,.._•IWOII<4~

<- .....,M-· ();If.._• I To11yH,;.h484 Lon Uei REAL 4 7

Fvt«,. v;·Sioo)ON;c. oll"olnofrow <92

0ATAPOINTS <95

Cllapter Summary by Learning Outcomes 498 ReviewandOiscussionOuestions 499 Preparingfor:MyCareer 499 CaseApplication1:E-MaiiBan 502 Case Application 2: Oelivery Oisaster 503

Chapter 17 Motivating Employees 504 WhatlsMotivation? 506 EarlyTheorieso!Motivation 507

Maslow'o-..-.,yoi-•Theooy507

~Theooy X an<ITheooy V508

~bwg'oTwo-FaciO<Theooy508

--·Theooy509

ContemporaryTheorieso!Motivation 510 Goai-S.nO>gTheooy$10

~1Theooy512

~MO!iYahngJobo S13

Equ;¡yTheooy51S

~tancyTheooy5H

MOiivMO>g in l ""'!hE<:onorniccrum.l....,... $20

~Croos-CutturaiMolivat<>na1ChallongH $ZO

MO!ivM<>gUniquoGroup.ot-o522

Desigr.íng~ .. ··-....ts~-·52•

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~::7Ge/W:~:9o;,_,.,. 1 Jo"MGoc</nighl 511

OATAPO/I'ITS$21

F"I"'"Vision)-Rtw/V!h522 !AI~GotREAL 52<;

Cllapter Summary by Learning Outcomes 527 ReviewandOiscussionOuestions 528 Preparingfor:MyCareer 528 Case Application 1: Pass ion for the Outdoors and for People 531 Case Application 2: Best Practicas at Best Buy 532

Chapter 18 Managers as Leaders 534 WhoAre LeadefflandWhat ls leadership? eartyleadershiplheories 536

l--.op-T-. (137

ContingencyTheoriesol l eadef$hip 540 Thof--SOO --r<I Bioncllatd"oSit-~T._-y 5-1 ! Patii·Goal,_ 5-12

ContemporaryViewsofleadership 544 l--Membo<~(I..MX)"""-"'5-1•

r,..,.......,..,.....,..f,onsact-L~S.OS

cr..-bC·V"""'"')"~SoiS

-'--~ LeadershiplssuesintheTwenty-Fi<$t Cenh.ory 548 ~-SOl! ~T....US.09 ........ ._~ ~--c.-...!61

hconW!g..,E-~!62

SPOTI.JG>m.,._~,- ~

::.:o.w::::-:,• OitiOfWtC#I 1 ~8- $<,!

Chapter Summary by Learning 01.1teomes ReviewandDiscl.lssionOtJestions 555

Preparing lor:MyCareer 555 Cas. Applieation 1:Growingleade<$ 558

Cas. Applieation 2: Radical Leader"$hip 559

Mam1gement Practice 560 A Manager's Dilemma 560

COntinuingCase-Starbucks 560

Appendix: M~Entreprenevria/Vffitvres ~

Endnolin588 --"' ()g¡wl/lJI.ort.t\CIIJ.<674

Giri!dex67'9