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Preface, xxii
Acknowledgments, xxvi
Authors, xl
Chapter One. Managers and Managing, 2
A Manager's Challenge How Anne Mulcahy Created a New Xerox, 3
Overview, 5
What Is Management?, 5
Achieving High Performance: A Manager's Goal, 5
Why Study Management?, 7
Essential Managerial Tasks, 8
Planning, 8
Organizing, 11
Leading, 12
Controlling, 12
Performing Managerial Tasks: Mintzberg's Typology, 13
Levels and Skills of Managers, 13
Levels of Management, 15
Managerial Skills, 16
Recent Changes in Management Practices, 20
Restructuring and Outsourcing, 20
Empowerment and Self-Managed Teams, 21
Challenges for Management in a Global Environment, 22
Building Competitive Advantage, 23
Maintaining Ethical and Socially Responsible Standards, 26
Managing a Diverse Workforce, 28
Utilizing IT and E-Commerce, 29
Practicing Global Crisis Management, 30
Chapter Two. The Evolution of Management Thought, 38
A Manager's Challenge Finding Better Ways to Make Cars, 39
Overview, 41
Scientific Management Theory, 42
Job Specialization and the Division of Labor, 42
F. W. Taylor and Scientific Management, 43
The Gilbreths, 46
Administrative Management Theory, 48
The Theory of Bureaucracy, 49
Fayol's Principles of Management, 50
Behavioral Management Theory, 55
The Work of Mary Parker Follett, 55
The Hawthorne Studies and Human Relations, 56
Theory X and Theory Y, 57
Management Science Theory, 60
Organizational Environment Theory, 61
The Open-Systems View, 61
Contingency Theory, 62
Chapter Three. Values, Attitudes, Emotions, and Culture: The Manager as a Person, 72
A Manager's Challenge Ryla Teleservices Stands Out Among Telemarketers, 73
Overview, 75
Enduring Characteristics: Personality Traits, 75
The Big Five Personality Traits, 75
Other Personality Traits That Affect Managerial Behavior, 80
Values, Attitudes, and Moods and Emotions, 81
Values: Terminal and Instrumental, 82
Attitudes, 84
Moods and Emotions, 88
Emotional Intelligence, 90
Organizational Culture, 91
Managers and Organizational Culture, 92
The Role of Values and Norms in Organizational Culture, 94
Culture and Managerial Action, 99
Chapter Four. Ethics and Social Responsibility, 108
A Manager's Challenge The Ethics of the Global Flower-Growing Business, 109
Overview, 111
The Nature of Ethics, 111
Ethical Dilemmas, 111
Ethics and the Law, 112
Changes in Ethics over Time, 113
Stakeholders and Ethics, 114
Stockholders, 114
Managers, 115
Employees, 118
Suppliers and Distributors, 118
Customers, 120
Community, Society, and Nation, 122
Rules for Ethical Decision Making, 122
Why Should Managers Behave Ethically?, 126
Ethics and Social Responsibility, 129
Societal Ethics, 129
Occupational Ethics, 131
Individual Ethics, 132
Organizational Ethics, 133
Approaches to Social Responsibility, 135
Four Different Approaches, 135
Why Be Socially Responsible?, 138
The Role of Organizational Culture, 138
Chapter Five. Managing Diverse Employees in a Multicultural Environment, 148
A Manager's Challenge Reaping the Benefits of Diversity, 149
Overview, 151
The Increasing Diversity of the Workforce and the Environment, 151
Age, 152
Gender, 153
Race and Ethnicity, 154
Religion, 155
Capabilities/Disabilities, 155
Socioeconomic Background, 156
Sexual Orientation, 158
Other Kinds of Diversity, 159
Managers and the Effective Management of Diversity, 159
Critical Managerial Roles, 159
The Ethical Imperative to Manage Diversity Effectively, 161
Effectively Managing Diversity Makes Good Business Sense, 162
Perception, 164
Factors That Influence Managerial Perception, 164
Perception as a Determinant of Unfair Treatment, 165
Overt Discrimination, 169
How to Manage Diversity Effectively, 170
Steps in Managing Diversity Effectively, 170
Sexual Harassment, 175
Forms of Sexual Harassment, 175
Steps Managers Can Take to Eradicate Sexual Harassment, 176
Chapter Six. Managing in the Global Environment, 186
A Manager's Challenge Nestlé's Global Food Empire, 187
Overview, 188
What Is the Global Environment?, 189
The Task Environment, 189
Suppliers, 189
Distributors, 193
Customers, 194
Competitors, 195
The General Environment, 198
Economic Forces, 199
Technological Forces, 199
Sociocultural Forces, 200
Demographic Forces, 201
Political and Legal Forces, 201
The Changing Global Environment, 202
The Process of Globalization, 204
Declining Barriers to Trade and Investment, 206
Declining Barriers of Distance and Culture, 207
Effects of Free Trade on Managers, 208
The Role of National Culture, 210
Cultural Values and Norms, 211
Hofstede's Model of National Culture, 211
National Culture and Global Management, 214
Chapter Seven. Decision Making, Learning, Creativity, and Entrepreneurship, 224
A Manager's Challenge Making Good Decisions at PUMA, 225
Overview, 227
The Nature of Managerial Decision Making, 227
Programmed and Nonprogrammed Decision Making, 228
The Classical Model, 232
The Administrative Model, 232
Steps in the Decision- Making Process, 236
Recognize the Need for a Decision, 236
Generate Alternatives, 237
Assess Alternatives, 238
Choose Among Alternatives, 239
Implement the Chosen Alternative, 239
Learn from Feedback, 240
Cognitive Biases and Decision Making, 241
Prior-Hypothesis Bias, 241
Representativeness Bias, 242
Illusion of Control, 242
Escalating Commitment, 242
Be Aware of Your Biases, 243
Group Decision Making, 243
The Perils of Groupthink, 243
Devil's Advocacy and Dialectical Inquiry, 244
Diversity Among Decision Makers, 245
Organizational Learning and Creativity, 245
Creating a Learning Organization, 245
Promoting Individual Creativity, 246
Promoting Group Creativity, 247
Entrepreneurship and Creativity, 248
Entrepreneurship and New Ventures, 250
Intrapreneurship and Organizational Learning, 251
Chapter Eight. The Manager as a Planner and Strategist, 260
A Manager's Challenge Why Does Best Buy Outperform Circuit City?, 261
Overview, 263
Planning and Strategy, 263
The Nature of the Planning Process, 264
Why Planning Is Important, 264
Levels of Planning, 265
Levels and Types of Planning, 266
Time Horizons of Plans, 268
Standing Plans and Single-Use Plans, 268
Scenario Planning, 269
Determining the Organization's Mission and Goals, 270
Defining the Business, 270
Establishing Major Goals, 272
Formulating Strategy, 273
SWOT Analysis, 273
The Five Forces Model, 276
Formulating Business- Level Strategies, 277
Low-Cost Strategy, 277
Differentiation Strategy, 278
“Stuck in the Middle”, 278
Focused Low-Cost and Focused Differentiation Strategies, 279
Formulating Corporate- Level Strategies, 281
Concentration on a Single Industry, 282
Vertical Integration, 282
Diversification, 284
International Expansion, 286
Planning and Implementing Strategy, 292
Appendix: How to Develop a Business Plan, 298
Developing a Business Plan, 298
Writing a Detailed Business Plan, 299
Developing Your Own Business Plan, 300
Chapter Nine. Value-Chain Management: Functional Strategies for Competitive Advantage, 302
A Manager's Challenge Toyota's Approach to Building Competitive Advantage, 303
Overview, 305
Functional Strategies, the Value Chain, and Competitive Advantage, 305
Functional Strategies and Value-Chain Management, 307
Improving Responsiveness to Customers, 309
What Do Customers Want?, 309
Managing the Value Chain to Increase Responsiveness to Customers, 310
Customer Relationship Management, 311
Improving Quality, 313
Total Quality Management, 314
Improving Efficiency, 318
Facilities Layout, Flexible Manufacturing, and Efficiency, 318
Just-in-Time Inventory and Efficiency, 321
Self-Managed Work Teams and Efficiency, 323
Process Reengineering and Efficiency, 323
Information Systems, the Internet, and Efficiency, 324
Improving Innovation, 324
Two Kinds of Innovation, 325
Strategies to Promote Innovation and Speed Product Development, 325
Managing the Value Chain: Some Remaining Issues, 331
Boundary-Spanning Roles, 331
Value-Chain Management Over Time, 333
Ethical Implications, 334
Chapter Ten. Managing Organizational Structure and Culture, 342
A Manager's Challenge Liz Claiborne Reorganizes Its Structure, 343
Overview, 345
Designing Organizational Structure, 345
The Organizational Environment, 346
Strategy, 347
Technology, 347
Human Resources, 348
Grouping Tasks into Jobs: Job Design, 348
Job Enlargement and Job Enrichment, 349
The Job Characteristics Model, 350
Grouping Jobs into Functions and Divisions: Designing Organizational Structure, 351
Functional Structure, 351
Divisional Structures: Product, Market, and Geographic, 354
Matrix and Product Team Designs, 358
Hybrid Structure, 361
Coordinating Functions and Divisions, 362
Allocating Authority, 362
Integrating and Coordinating Mechanisms, 368
Organizational Culture, 370
Where Does Organizational Culture Come From?, 372
Strong, Adaptive Cultures versus Weak, Inert Cultures, 375
Chapter Eleven. Organizational Control and Change, 384
A Manager's Challenge What is the Best Way to Control People and Resources?, 385
Overview, 387
What Is Organizational Control?, 387
The Importance of Organizational Control, 388
Control Systems and IT, 389
The Control Process, 390
Output Control, 393
Financial Measures of Performance, 393
Organizational Goals, 396
Operating Budgets, 396
Problems with Output Control, 398
Behavior Control, 399
Direct Supervision, 399
Management by Objectives, 400
Bureaucratic Control, 402
Problems with Bureaucratic Control, 404
Clan Control, 406
Organizational Change, 407
Lewin's Force-Field Theory of Change, 408
Evolutionary and Revolutionary Change, 409
Managing Change, 409
Chapter Twelve. Human Resource Management, 420
A Manager's Challenge Treating Employees Well Leads to Satisfied Customers, 421
Overview, 423
Strategic Human Resource Management, 423
Overview of the Components of HRM, 424
The Legal Environment of HRM, 427
Recruitment and Selection, 429
Human Resource Planning, 430
Job Analysis, 431
External and Internal Recruitment, 432
The Selection Process, 434
Training and Development, 438
Types of Training, 438
Types of Development, 439
Transfer of Training and Development, 441
Performance Appraisal and Feedback, 441
Types of Performance Appraisal, 441
Who Appraises Performance?, 444
Effective Performance Feedback, 445
Pay and Benefits, 447
Pay Level, 447
Pay Structure, 447
Benefits, 448
Labor Relations, 450
Unions, 450
Collective Bargaining, 451
Chapter Thirteen. Motivation and Performance, 460
A Manager's Challenge Motivating Employees at Enterprise Rent-A-Car, 461
Overview, 463
The Nature of Motivation, 464
Expectancy Theory, 467
Expectancy, 467
Instrumentality, 468
Valence, 469
Bringing It All Together, 470
Need Theories, 471
Maslow's Hierarchy of Needs, 472
Alderfer's ERG Theory, 473
Herzberg's Motivator- Hygiene Theory, 474
McClelland's Needs for Achievement, Affiliation, and Power, 474
Other Needs, 475
Equity Theory, 476
Equity, 476
Inequity, 477
Ways to Restore Equity, 477
Goal-Setting Theory, 479
Learning Theories, 480
Operant Conditioning Theory, 480
Social Learning Theory, 483
Pay and Motivation, 485
Basing Merit Pay on Individual, Group, or Organizational Performance, 485
Salary Increase or Bonus?, 486
Examples of Merit Pay Plans, 487
Chapter Fourteen. Leadership, 494
A Manager's Challenge Judy McGrath Leads MTV Networks, 495
Overview, 497
The Nature of Leadership, 497
Personal Leadership Style and Managerial Tasks, 497
Leadership Styles Across Cultures, 499
Power: The Key to Leadership, 500
Empowerment: An Ingredient in Modern Management, 503
Trait and Behavior Models of Leadership, 504
The Trait Model, 504
The Behavior Model, 505
Contingency Models of Leadership, 507
Fiedler's Contingency Model, 507
House's Path-Goal Theory, 510
The Leader Substitutes Model, 511
Bringing It All Together, 512
Transformational Leadership, 513
Being a Charismatic Leader, 514
Stimulating Subordinates Intellectually, 514
Engaging in Developmental Consideration, 514
The Distinction Between Transformational and Transactional Leadership, 515
Gender and Leadership, 515
Emotional Intelligence and Leadership, 516
Chapter Fifteen. Effective Groups and Teams, 526
A Manager's Challenge Employees Form Teams at ICU Medical, 527
Overview, 529
Groups, Teams, and Organizational Effectiveness, 529
Groups and Teams as Performance Enhancers, 530
Groups, Teams, and Responsiveness to Customers, 532
Teams and Innovation, 532
Groups and Teams as Motivators, 534
Types of Groups and Teams, 534
The Top-Management Team, 535
Research and Development Teams, 535
Command Groups, 535
Task Forces, 536
Self-Managed Work Teams, 536
Virtual Teams, 538
Friendship Groups, 539
Interest Groups, 540
Group Dynamics, 540
Group Size, Tasks, and Roles, 540
Group Leadership, 543
Group Development over Time, 543
Group Norms, 544
Group Cohesiveness, 548
Managing Groups and Teams for High Performance, 551
Motivating Group Members to Achieve Organizational Goals, 551
Reducing Social Loafing in Groups, 553
Helping Groups to Manage Conflict Effectively, 554
Chapter Sixteen. Promoting Effective Communication, 564
A Manager's Challenge Managers Need Feedback from Employees, 565
Overview, 567
Communication and Management, 567
The Importance of Good Communication, 567
The Communication Process, 569
The Role of Perception in Communication, 570
The Dangers of Ineffective Communication, 571
Information Richness and Communication Media, 572
Face-to-Face Communication, 573
Spoken Communication Electronically Transmitted, 575
Personally Addressed Written Communication, 575
Impersonal Written Communication, 578
Communication Networks, 579
Communication Networks in Groups and Teams, 579
Organizational Communication Networks, 580
External Networks, 581
Information Technology and Communication, 582
The Internet, 582
Intranets, 582
Groupware and Collaboration Software, 583
Communication Skills for Managers, 586
Communication Skills for Managers as Senders, 587
Communication Skills for Managers as Receivers, 589
Understanding Linguistic Styles, 590
Chapter Seventeen. Managing Conflict, Politics, and Negotiation, 602
A Manager's Challenge Ravi Kant Effectively Manages Conflict, 603
Overview, 604
Organizational Conflict, 605
Types of Conflict, 605
Sources of Conflict, 607
Conflict Management Strategies, 609
Negotiation, 613
Distributive Negotiation and Integrative Bargaining, 613
Strategies to Encourage Integrative Bargaining, 613
Organizational Politics, 615
The Importance of Organizational Politics, 616
Political Strategies for Gaining and Maintaining Power, 616
Political Strategies for Exercising Power, 619
Chapter Eighteen. Using Advanced Information Technology to Increase Performance, 632
A Manager's Challenge Now B&M Retailers Use IT to Attract Customers, 633
Overview, 635
Information and the Manager's Job, 635
Attributes of Useful Information, 636
What Is Information Technology?, 637
Information and Decisions, 638
Information and Control, 638
Information and Coordination, 640
The IT Revolution, 641
The Effects of Advancing IT, 641
IT and the Product Life Cycle, 641
Computer Networks, 643
Types of Management Information Systems, 646
The Organizational Hierarchy: The Traditional Information System, 646
Transaction-Processing Systems, 647
Operations Information Systems, 647
Decision Support Systems, 648
Artificial Intelligence and Expert Systems, 649
Enterprise Resource Planning Systems, 650
E-Commerce Systems, 653
The Impact and Limitations of Information Technology, 654
Strategic Alliances, B2B Network Structures, and IT, 654
Flatter Structures and Horizontal Information Flows, 656
Limitations of IT, 659
Glossary, 667
Credits, 679
Photo Credits, 711
Index, 713

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