JWCL198_FM_i-xxix.indd Page xvii 11/5/09 1:56:15 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
Brief Contents Managers and Management 1 Managers and the Management Process: Everyone becomes a manager someday. 2 2 Management Learning: Great things grow from strong foundations. 26 3 Ethics and Social Responsibility: Character doesn’t stay home when we go to work. 48
Planning and Controlling 4 5 6 7
Managers as Decision Makers: There is no substitute for a good decision. 72 Plans and Planning Techniques: Good objectives get you there faster. 94 Controls and Control Systems: What gets measured happens. 114 Strategy and Strategic Management: Insight and hard work deliver results. 136
Organizing 8 Organization Structure and Design: It’s all about working together. 156 9 Organizational Culture, Innovation, and Change: Adaptability and values set the tone. 180 10 Human Resource Management: Nurturing turns potential into performance. 206
Leading 11 12 13 14 15 16
Leadership: A leader lives in each of us. 230 Communication: Listening is the key to understanding. 252 Individual Behavior: There’s beauty in individual differences. 274 Motivation: Respect unlocks human potential. 294 Teams and Teamwork: Two heads really can be better than one. 316 Conflict and Negotiation: Working together isn’t always easy. 340
Environment 17 Diversity and Global Cultures: There are new faces in the neighborhood. 358 18 Globalization and International Business: Going global isn’t just for travelers. 378 19 Entrepreneurship and Small Business: Taking risks can make dreams come true. 398 On-line Module Essentials of Operations and Services Management: Quality and flexibility make the difference.
xvii
JWCL198_FM_i-xxix.indd Page xviii 11/5/09 1:56:15 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
Detailed Contents 1 Managers and the Management Process 1.1 What Does It Mean to Be a Manager?
2
4
• Organizations have different types and levels of managers. 4 • Accountability is a cornerstone of managerial performance. 5 • Effective managers help others achieve high performance and satisfaction. 6 • Managers must meet multiple changing expectations. 6
1.2 What Do Managers Do? • • • • • •
9
Managerial work is often intense and demanding. 9 Managers plan, organize, lead, and control. 9 Managers enact informational, interpersonal, and decisional roles. 11 Managers pursue action agendas and engage in networking. 11 Managers use a variety of technical, human, and conceptual skills. 12 Managers learn from experience. 13
1.3 What Issues and Concerns Complicate the New Workplace?
16
• Recession, globalization, and job migration are changing the world of work. 16 • Failures of ethics and corporate governance are troublesome. 17 • Diversity and discrimination are continuing social priorities. 18 • People and intellectual capital drive high-performance organizations. 19 • Career success requires continuous learning and a capacity for self-management. 20
2 Management Learning
26
2.1 What Can We Learn from Classical Management Thinking?
28
• Taylor’s scientific management sought efficiency in job performance. 28 • Weber’s bureaucratic organization is supposed to be efficient and fair. 29 • Fayol’s administrative principles describe managerial duties and practices. 30
2.2 What Is Unique about the Behavioral Management Approaches?
32
• Follett viewed organizations as communities of cooperative action. 32 • The Hawthorne studies focused attention on the human side of organizations. 33 • Maslow described a hierarchy of human needs with self-actualization at the top. 34 xviii
Detailed Contents
JWCL198_FM_i-xxix.indd Page xix 11/5/09 1:56:15 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• McGregor believed managerial assumptions create self-fulfilling prophecies. 35 • Argyris suggests that workers treated as adults will be more productive. 36
2.3 What Are the Foundations of the Modern Management Approaches?
38
• Managers use quantitative analysis and tools to solve complex problems. 38 • Organizations are open systems that interact with their environments. 39 • Organizations operate as complex networks of cooperating subsystems. 40 • Contingency thinking believes there is no one best way to manage. 41 • Quality management focuses attention on continuous improvement. 41 • Knowledge management and organizational learning provide continuous adaptation. 42 • Evidence-based management seeks hard facts about what really works. 43
3 Ethics and Social Responsibility
48
3.1 How Do Ethics and Ethical Behavior Play Out in the Workplace?
50
• Ethical behavior can always be described as “good” or “right”. 50 • Ethical behavior is values driven. 50 • What is considered ethical varies among moral reasoning approaches. 51 • What is considered ethical can vary across cultures. 53 • Ethical dilemmas arise as tests of personal ethics and values. 54 • People have tendencies to rationalize unethical behaviors. 55
3.2 How Can We Maintain High Standards of Ethical Conduct?
57
• Personal factors and moral development influence ethical decision making. 57 • Training in ethical decision making can improve ethical conduct. 58 • Protection of whistleblowers can encourage ethical conduct. 59 • Managers as positive role models can inspire ethical conduct. 59 • Formal codes of ethics set standards for ethical conduct. 60
3.3 What Should We Know about the Social Responsibilities of Organizations?
62
• Social responsibility is an organization’s obligation to best serve society. 62 • Scholars argue cases for and against corporate social responsibility. 63 • Social business and social entrepreneurship point the way in social responsibility. 64 • Failures of ethics and social responsibility prompt calls for stronger governance. 65 Detailed Contents xix
JWCL198_FM_i-xxix.indd Page xx 11/7/09 12:26:14 AM user-s162
/Volumes/JWCL-New/JWCL198/JWCL198-fm
4 Managers as Decision Makers
72
4.1 How Do Managers Use Information to Make Decisions and Solve Problems?
74
• Managers deal with problems posing threats and offering opportunities. 74 • Managers can be problem avoiders, problem solvers, or problem seekers. 75 • Managers display systematic and intuitive thinking in problem-solving. 75 • Managers use different cognitive styles to process information for decision making. 75 • Managers make decisions under conditions of certainty, risk, and uncertainty. 76 • Managers make programmed and nonprogrammed decisions when solving problems. 78
4.2 What Are the Steps in the Decision-Making Process? • • • • • •
80
Step 1 is to identify and define the problem. 80 Step 2 is to generate and evaluate alternative courses of action. 81 Step 3 is to decide on a preferred course of action. 81 Step 4 is to implement the decision. 82 Step 5 is to evaluate results. 82 Ethical reasoning is important at all steps in decision making. 83
4.3 What Are Some Current Issues in Managerial Decision Making?
85
• • • •
Personal factors help drive creativity in decision making. 85 Situational factors help drive creativity in decision making. 86 Group decision making has both advantages and disadvantages. 87 Judgmental heuristics and other biases may cause decisionmaking errors. 87 • Managers must be prepared for crisis decision making. 89
5 Plans and Planning Techniques 5.1 How and Why Do Managers Plan? • • • • •
96
Planning is one of the four functions of management. 96 Planning sets objectives and identifies how to achieve them. 96 Planning improves focus and action orientation. 97 Planning improves coordination and control. 98 Planning improves time management. 98
5.2 What Types of Plans Do Managers Use? • • • •
94
101
Managers use short-range and long-range plans. 101 Managers use strategic and operational plans. 101 Organizational policies and procedures are plans. 102 Budgets are plans that commit resources to activities. 103
5.3 What Are Some Useful Planning Tools and Techniques?
105
• Forecasting tries to predict the future. 105 • Contingency planning creates back-up plans for when things go wrong. 105 • Scenario planning crafts plans for alternative future conditions. 106 • Benchmarking identifies best practices used by others. 106 • Staff planners provide special expertise in planning. 107 xx Detailed Contents
JWCL198_FM_i-xxix.indd Page xxi 11/6/09 11:33:45 PM user-s162
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Participatory planning improves implementation capacities. 107 • Goal setting helps align plans and activities throughout an organization. 108
6 Controls and Control Systems
114
6.1 What Is Important to Know about the Control Process? • • • • •
116
Controlling is one of the four functions of management. 116 Control begins with objectives and standards. 117 Control measures actual performance. 118 Control compares results with objectives and standards. 118 Control takes corrective action as needed. 119
6.2 How Do Managers Exercise Control?
121
• Managers use feedforward, concurrent, and feedback controls. 121 • Managers use both internal and external controls. 122 • Management by objectives integrates planning and controlling. 123
6.3 What Are Some Useful Organizational Control Systems and Techniques?
126
• Quality control is a foundation of modern management. 126 • Gantt charts and CPM/PERT are used in project management and control. 127 • Inventory controls help save costs. 128 • Breakeven analysis shows where revenues will equal costs. 128 • Financial ratios and balanced scorecards help strengthen organizational controls. 129
7 Strategy and Strategic Management 7.1 What Types of Strategies Are Used by Organizations?
136 138
• Strategy is a comprehensive plan for achieving competitive advantage. 138 • Organizations use strategy at the corporate, business, and functional levels. 138 • Growth and diversification strategies focus on expansion. 139 • Restructuring and divestiture strategies focus on consolidation. 140 • Global strategies focus on international business initiatives. 140 • Cooperative strategies find opportunities in alliances and partnerships. 141 • E-business strategies focus on using the Internet for business transactions. 142
7.2 How Are Strategies Formulated and Implemented?
144
• The strategic management process formulates and implements strategies. 144 • Strategy formulation begins with the organization’s mission and objectives. 144 • SWOT analysis identifies strengths, weaknesses, opportunities, and threats. 145 • Porter’s five forces model examines industry attractiveness. 146 • Porter’s competitive strategies model examines business and product strategies. 147 • Portfolio planning examines strategies across multiple businesses or products. 148 Detailed Contents xxi
JWCL198_FM_i-xxix.indd Page xxii 11/6/09 11:33:56 PM user-s162
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Strategic leadership ensures strategy implementation and control. 149
8 Organization Structure and Design
156
8.1 What Is Organizing as a Managerial Responsibility?
158
• Organizing is one of the management functions. 158 • Organization charts describe the formal structures of organizations. 158 • Organizations also operate with informal structures. 159 • Informal structures have good points and bad points. 160
8.2 What Are the Most Common Types of Organization Structures?
163
• Functional structures group together people using similar skills. 163 • Divisional structures group together people by products, customers, or locations. 164 • Matrix structures combine the functional and divisional structures. 166 • Team structures use many permanent and temporary teams. 167 • Network structures extensively use strategic alliances and outsourcing. 168
8.3 What Are the Trends in Organizational Design?
171
• Organizations are becoming flatter, with fewer levels of management. 171 • Organizations are increasing decentralization. 172 • Organizations are increasing delegation and empowerment. 172 • Organizations are becoming more horizontal and adaptive. 173 • Organizations are using more alternative work schedules. 174
9 Organizational Culture, Innovation, and Change
180
9.1 What Is the Nature of Organizational Culture?
182
• Organizational culture is the personality of the organization. 182 • Great organizational cultures are customer-driven and performance-oriented. 182 • The observable culture is what you see and hear as an employee or customer. 183 • The core culture is found in the underlying values of the organization. 184 • Value-based management supports a strong organizational culture. 185
9.2 How Do Organizations Support and Achieve Innovation? • Organizations pursue process, product, and business model innovations. 188 • Green innovations pursue and support the goals of sustainability. 189 • Social business innovations seek solutions to important societal problems. 189 • Commercializing innovation puts new ideas into use. 190 • Innovative organizations share many common characteristics. 191 xxii
Detailed Contents
188
JWCL198_FM_i-xxix.indd Page xxiii 11/5/09 1:56:16 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
9.3 How Do Managers Lead the Processes of Organizational Change?
195
• Organizations pursue both transformational and incremental changes. 195 • Three phases of planned change are unfreezing, changing, and refreezing. 196 • Managers use force-coercion, rational persuasion, and shared power change strategies. 198 • Change leaders identify and deal positively with resistance to change. 200
10 Human Resource Management
206
10.1 What Are the Purpose and Legal Context of Human Resource Management?
208
• Human resource management attracts, develops, and maintains a talented workforce. 208 • Strategic human resource management aligns human capital with organizational strategies. 208 • Governmental legislation protects workers against employment discrimination. 209 • Employee rights and concerns influence the legal environment of work. 211
10.2 What Are the Essential Human Resource Management Practices?
214
• Human resource planning matches staffing with organizational needs. 214 • Recruitment and selection attract and hire qualified job applicants. 214 • Socialization and orientation integrate new employees into the organization. 215 • Training continually develops employee skills and capabilities. 216 • Performance management appraises and rewards accomplishments. 217 • Retention and career development provide career paths. 218
10.3 What Are Some of the Current Issues in Human Resource Management?
221
• Today’s lifestyles increase demands for flexibility and work-life balance. 221 • Compensation plans influence employee recruitment and retention. 222 • Fringe benefits are an important part of employee compensation packages. 223 • Labor relations and collective bargaining are closely governed by law. 223
11 Leadership
230
11.1 What Are the Foundations for Effective Leadership?
232
• Leadership is one of the four functions of management. 232 • Leaders use position power to achieve influence. 233 • Leaders use personal power to achieve influence. 234 Detailed Contents
xxiii
JWCL198_FM_i-xxix.indd Page xxiv 11/5/09 1:56:16 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Leaders bring vision to leadership situations. 235 • Leaders display different traits in the quest for leadership effectiveness. 235 • Leaders display different styles in the quest for leadership effectiveness. 235
11.2 What Are the Contingency Leadership Theories?
238
• Fiedler’s contingency model matches leadership styles with situational differences. 238 • The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers. 239 • House’s path-goal theory matches leadership styles with task and follower characteristics. 240 • Leader-member exchange theory describes how leaders treat in-group and out-group followers. 241 • The Vroom-Jago model describes a leader’s choice of alternative decision-making methods. 241
11.3 What Are Current Issues and Directions in Leadership Development?
244
• Transformational leadership inspires enthusiasm and extraordinary performance. 244 • Emotionally intelligent leadership handles emotions and relationships well. 244 • Interactive leadership emphasizes communication, listening, and participation. 245 • Moral leadership builds trust from a foundation of personal integrity. 246 • Servant leadership is follower centered and empowering. 247
12 Communication
252
12.1 What Is Communication and When Is It Effective?
254
• Communication is a process of sending and receiving messages with meanings attached. 254 • Communication is effective when the receiver understands the sender’s message. 255 • Communication is efficient when it is delivered at low cost to the sender. 256 • Communication is persuasive when the receiver acts as the sender intends. 257
12.2 What Are the Major Barriers to Effective Communication? • Poor use of communication channels makes it hard to communicate effectively. 259 • Poor written or oral expression makes it hard to communicate effectively. 260 • Failure to spot nonverbal signals makes it hard to communicate effectively. 261 • Physical distractions make it hard to communicate effectively. 261 • Status differences make it hard to communicate effectively. 262
12.3 How Can We Improve Communication with People at Work?
264
• Active listening helps people say what they really mean. 264 • Constructive feedback is specific, timely, and relevant. 265 xxiv Detailed Contents
259
JWCL198_FM_i-xxix.indd Page xxv 11/5/09 1:56:16 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Open communication channels build trust and improve upward communication. 265 • Office spaces can be designed to encourage interaction and communication. 266 • Appropriate use of technology can facilitate more and better communication. 267 • Sensitivity and etiquette can improve cross-cultural communication. 268
13 Individual Behavior
274
13.1 How Do Perceptions Influence Individual Behavior?
276
• Perceptual distortions can obscure individual differences. 276 • Perception can cause attribution errors as we explain events and problems. 278 • Impression management is a way of influencing how others perceive us. 278
13.2 How Do Personalities Influence Individual Behavior?
281
• The Big Five personality traits describe work-related individual differences. 281 • The Myers-Briggs Type Indicator is a popular approach to personality assessment. 281 • Many personality traits influence work behavior. 282 • People with Type A personalities tend to stress themselves. 283 • Stress has consequences for work performance and personal health. 283
13.3 How Do Attitudes, Emotions, and Moods Influence Individual Behavior?
286
• Attitudes predispose people to act in certain ways. 286 • Job satisfaction is a positive attitude toward one’s job and work experiences. 286 • Job satisfaction influences work behaviors. 287 • Job satisfaction has a complex relationship with job performance. 288 • Emotions and moods are positive and negative states of mind that influence behavior. 288
14 Motivation
294
14.1 How Do Human Needs and Job Designs Influence Motivation to Work?
296
• Maslow described a hierarchy of needs topped by selfactualization. 296 • Alderfer’s ERG theory deals with existence, relatedness, and growth needs. 296 • McClelland identified acquired needs for achievement, power, and affiliation. 297 • Herzberg’s two-factor theory focuses on higher-order need satisfaction. 298 • The core characteristics model integrates motivation and job design. 299
14.2 How Do Thought Processes and Decisions Affect Motivation to Work?
303
• Equity theory explains how social comparisons motivate individual behavior. 303 Detailed Contents xxv
JWCL198_FM_i-xxix.indd Page xxvi 11/5/09 1:56:17 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Expectancy theory considers motivation = expectancy × instrumentality × valence. 304 • Goal-setting theory shows that well-chosen and well-set goals can be motivating. 306
14.3 What Role Does Reinforcement Play in Motivation?
308
• Operant conditioning influences behavior by controlling its consequences. 308 • Positive reinforcement connects desirable behavior with pleasant consequences. 309 • Punishment connects undesirable behavior with unpleasant consequences. 310
15 Teams and Teamwork
316
15.1 Why Is It Important to Understand Teams and Teamwork?
318
• Teams offer synergy and other benefits to organizations and their members. 318 • Teams often suffer from common performance problems. 318 • Organizations are networks of formal teams and informal groups. 319 • Organizations use committees, task forces, and cross-functional teams. 320 • Virtual teams are increasingly common in organizations. 321 • Self-managing teams are a form of job enrichment for groups. 321
15.2 What Are the Building Blocks for Successful Teamwork? • • • • • •
324
Teams need the right members and inputs to be effective. 325 Teams need the right processes to be effective. 326 Teams move through different stages of development. 326 Team performance is affected by norms and cohesiveness. 328 Team performance is affected by task and maintenance roles. 329 Team performance is affected by use of communication networks. 329
15.3 How Can Managers Create and Lead High-Performance Teams? • • • •
332
Team building helps team members learn to better work together. Team performance is affected by use of decision-making methods. Team performance suffers when groupthink leads to bad decisions. Special techniques can increase creativity in team decision making.
16 Conflict and Negotiation
340
16.1 What Should We Know about Dealing with Conflict? • • • • •
342
Conflicts can occur over substantive or emotional issues. 342 Conflicts can be both functional and dysfunctional. 343 Organizations have many sources of potential conflict. 344 People use different interpersonal conflict management styles. 345 Structural approaches can help deal with conflicts in organizations. 346
16.2 How Can We Negotiate Successfully?
349
• Negotiation is a process of reaching agreement. 349 • Negotiation can be approached in distributive or integrative ways. 350 xxvi Detailed Contents
332 333 333 334
JWCL198_FM_i-xxix.indd Page xxvii 11/5/09 1:56:17 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
• Integrative agreements require commitment, trust, and information. 350 • Successful negotiation should meet high ethical standards. 351 • Negotiators should guard against common negotiation pitfalls. 352 • Mediation and arbitration are forms of third-party negotiations. 353
17 Diversity and Global Cultures
358
17.1 What Should We Know about Diversity in the Workplace? • • • • •
360
There is a business case for diversity. 360 Inclusive organizational cultures value and support diversity. 361 Organizational subcultures can create diversity challenges. 361 Minorities and women suffer diversity bias in many situations. 363 Managing diversity should be top leadership priority. 364
17.2 What Should We Know about Diversity among Global Cultures?
367
• Culture shock comes from discomfort in cross-cultural situations. 367 • Cultural intelligence is the capacity to adapt to foreign cultures. 368 • The “silent” languages of cultures include context, time, and space. 368 • Hofstede identifies five value differences among national cultures. 369 • Project GLOBE identifies ten country clusters displaying cultural differences. 371
18 Globalization and International Business
378
18.1 How Does Globalization Affect International Business?
380
• Globalization involves the growing interdependence of the world’s economies. 380 • Globalization creates a variety of international business opportunities. 381 • International business is done by global sourcing, import/export, licensing, and franchising. 382 • International business is done by joint ventures and wholly owned subsidiaries. 383 • International business is complicated by different legal and political systems. 384
18.2 What Are Global Corporations and How Do They Work?
387
• Global corporations or MNCs do substantial business in many countries. 387 • The actions of global corporations can be controversial at home and abroad. 387 • Managers of global corporations face a variety of ethical challenges. 388 • Global corporations face growing calls to support sustainable development. 390 • Planning and controlling are complicated in global corporations. 391 • Organizing can be difficult in global corporations. 391 • Leading is challenging in global corporations. 393 Detailed Contents xxvii
JWCL198_FM_i-xxix.indd Page xxviii 11/5/09 1:56:17 PM user-s155
/Volumes/JWCL-New/JWCL198/JWCL198-fm
19 Entrepreneurship and Small Business
398
19.1 What Is Entrepreneurship and Who Are Entrepreneurs? • • • •
400
Entrepreneurs are risk takers that spot and pursue opportunities. 400 Entrepreneurs often share similar personal characteristics. 401 Women and minority entrepreneurs are growing in numbers. 403 Social entrepreneurs seek novel solutions to pressing social problems. 404
19.2 What Should We Know about Small Business and How to Start One? • • • • • • •
406
Small businesses are mainstays of the economy. 406 Small businesses must master three life-cycle stages. 406 Family-owned businesses can face unique challenges. 407 Most small businesses fail within five years. 408 A small business should start with a sound business plan. 409 There are different forms of small business ownership. 409 There are different ways of financing a small business. 410
Exploring Management Cases Test Prep Answers 461 Glossary G-1 End notes EN-1 Photo Credits PC-1 Name Index NI-1 Subject Index SI-1 Organization Index OI-1
xxviii Detailed Contents
416