Management 13th Edition PDF

 13E Management Stephen P. Robbins GE San Diego State University...

 13E Management Stephen P. Robbins GE San Diego State University Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Vice President, Business Publishing: Donna Battista Project Manager Team Lead: Judy Leale Editor-in-Chief: Stephanie Wall Project Manager: Kelly Warsak Senior Acquisitions Editor: Kris Ellis-Levy Operations Specialist: Diane Peirano Senior Acquisitions Editor, Global Editions: Steven Jackson Creative Director: Blair Brown Program Manager Team Lead: Ashley Santora Art Director/Program Design Lead: Janet Slowik Program Manager: Sarah Holle Interior Designer: QT Design Assistant Project Editor, Global Editions: Paromita Cover Designer: Lumina Datamatics Banerjee Vice President, Director of Digital Strategy & Assessment: Editorial Assistant: Bernard Ollila Paul Gentile Vice President, Product Marketing: Maggie Moylan Manager of Learning Applications: Paul Deluca Director of Marketing, Digital Services and Products: Digital Editor: Brian Surette Jeanette Koskinas Digital Studio Manager: Diane Lombardo Senior Manufacturing Controller, Global Editions: Trudy Digital Studio Project Managers: Robin Lazrus, Alana Kimber Coles, Monique Lawrence, Regina DaSilva Executive Product Marketing Manager: Anne Fahlgren Media Production Manager, Global Editions: Vikram Kumar Field Marketing Manager: Lenny Ann Raper Full-Service Project Management and Composition: Integra Senior Strategic Marketing Manager: Erin Gardner Software Services Pvt. Ltd. Acknowledgements of third party content appear on the appropriate page within the text, which constitutes an extension of this copyright page. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2016 The rights of Stephen P. Robbins and Mary Coulter to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled Management, 13th Edition, ISBN 978-0-13-391029-2 by Stephen P. Robbins and Mary Coulter, published by Pearson Education © 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN 10: 1-292-09020-0 ISBN 13: 978-1-292-09020-7 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Typeset in 10/12 Times New Roman MT Std by Integra Software Services Pvt. Ltd. Printed and bound by Courier Kendallville in The United States of America  To my wife, Laura Steve To my husband, Ron Mary About the Authors Stephen P. Robbins received his Ph.D. from the University of Arizona. He previously worked for the Shell Oil Company and Reynolds Metals Company and has taught at the University of Nebraska at Omaha, Concordia University in Montreal, the University of Baltimore, Southern Illinois University at Edwardsville, and San Diego State University. He is currently professor emeritus in management at San Diego State. Dr. Robbins’s research interests have focused on conflict, power, and politics in organizations, behavioral decision making, and the development of effective interpersonal skills. His articles on these and other topics have appeared in such journals as Business Horizons, the California Management Review, Business and Economic Perspectives, International Management, Management Review, Canadian Personnel and Industrial Relations, and The Journal of Management Education. Dr. Robbins is the world’s best-selling textbook author in the areas of management and organizational behavior. His books have sold more than 6 million copies and have been translated into 20 languages. His books are currently used at more than 1,500 U.S. colleges and universities, as well as hundreds of schools throughout Canada, Latin America, Australia, New Zealand, Asia, and Europe. Dr. Robbins also participates in masters track competition. Since turning 50 in 1993, he’s won 23 national championships and 14 world titles. He was inducted into the U.S. Masters Track & Field Hall of Fame in 2005 and is currently the world record holder at 100 m and 200 m for men 65 and over. Mary Coulter received her Ph.D. from the University of Arkansas. She held different jobs including high school teacher, legal assistant, and city government program planner before completing her graduate work. She has taught at Drury University, the University of Arkansas, Trinity University, and Missouri State University. She is currently professor emeritus of management at Missouri State University. In addition to Management, Dr. Coulter has published other books with Pearson including Fundamentals of Management (with Stephen P. Robbins), Strategic Management in Action, and Entrepreneurship in Action. When she’s not busy writing, Dr. Coulter enjoys puttering around in her flower gardens, trying new recipes, reading all different types of books, and enjoying many different activities with husband Ron, daughters and sons-in- law Sarah and James, and Katie and Matt, and most especially with her two grandkids, Brooklynn and Blake, who are the delights of her life!  Brief Contents Preface 25 Acknowledgments 33 Part 1 Introduction to Management Part 2 Basics of Managing in Today’s Workplace Chapter 1: Managers in the Chapter 3: Managing the External Workplace 34 Environment and the Organization’s Management History Module 58 Culture 102 Chapter 2: Making Decisions 72 Chapter 4: Managing in a Global Environment 128 Part 1 Management Practice 98 Chapter 5: Managing Diversity 154 Chapter 6: Managing Social Responsibility and Ethics 182 Chapter 7: Managing Change and Innovation 212 Part 2 Management Practice 240 Part 3 Planning Part 4 Organizing Chapter 8: Planning Work Chapter 10: Designing Organizational Activities 246 Structure—Basic Designs 320 Chapter 9: Managing Strategy 266 Chapter 11: Designing Organizational Creating and Leading Structure—Adaptive Designs 344 Entrepreneurial Ventures Chapter 12: Managing Human Module 292 Resources 368 Part 3 Management Practice 316 Managing Your Career Module 400 Chapter 13: Creating and Managing Teams 404 Part 4 Management Practice 430 Part 5 Leading Part 6 Controlling Chapter 14: Managing Chapter 18: Monitoring and Communication 434 Controlling 554 Chapter 15: Understanding and Planning and Control Techniques Managing Individual Behavior 460 Module 584 Chapter 16: Motivating Employees 492 Managing Operations Chapter 17: Being an Effective Module 599 Leader 522 Part 6 Management Practice 614 Part 5 Management Practice 548 Endnotes 618 Glossary 672 Name Index 684 Organization Index 703 Subject Index 708 This page intentionally left blank  Contents Preface 25 Acknowledgments 33 Part 1 Introduction to Management 34 Chapter 1: Managers in the Workplace 34 Why Are Managers Important? 36 Who Are Managers and Where Do They Work? 37 Who Is a Manager? 37 Where Do Managers Work? 38 What Do Managers Do? 39 Management Functions 40 Mintzberg’s Managerial Roles and a Contemporary Model of Managing 42 Management Skills 43 How Is the Manager’s Job Changing? 45 Importance of Customers to the Manager’s Job 46 Importance of Social Media to the Manager’s Job 47 Importance of Innovation to the Manager’s Job 48 Importance of Sustainability to the Manager’s Job 48 Why Study Management? 49 The Universality of Management 49 The Reality of Work 50 Rewards and Challenges of Being a Manager 50 Boxed Features It’s Your Career: The ABC’s of Managing Your Time 34 FYI 38 Future Vision: Is It Still Managing When What You’re Managing Are Robots? 39 Let’s Get REAL 42, 45 Leader Making a Difference: Ursula Burns 48 Preparing for: Exam/Quizzes 51 Chapter Summary by Learning Objectives 51 Review and Discussion Questions 53 Preparing for: My Career 53 Personal Inventory Assessments: Time Management Assessment 53 Ethics Dilemma 53 Skill Exercise: Developing Your Political Skill 54 Working Together: Team Exercise 54 Learning to Be a Manager 54 7 8 Contents Case Application 1: Who Needs a Boss? 55 Case Application 2: Building a Better Boss 56 Management History Module 58 Early Management 58 Classical Approach 60 Behavioral Approach 63 Quantitative Approach 65 Contemporary Approaches 67 Chapter 2: Making Decisions 72 The Decision-Making Process 73 Step 1: Identify a Problem 74 Step 2: Identify Decision Criteria 74 Step 3: Allocate Weights to the Criteria 75 Step 4: Develop Alternatives 75 Step 5: Analyze Alternatives 76 Step 6: Select an Alternative 76 Step 7: Implement the Alternative 76 Step 8: Evaluate Decision Effectiveness 77 Managers Making Decisions 77 Making Decisions: Rationality 78 Making Decisions: Bounded Rationality 78 Making Decisions: The Role of Intuition 79 Making Decisions: The Role of Evidence-Based Management 80 Types of Decisions and Decision-Making Conditions 81 Types of Decisions 81 Decision-Making Conditions 83 Decision-Making Styles 85 Linear–Nonlinear Thinking Style Profile 86 Decision-Making Biases and Errors 86 Overview of Managerial Decision Making 88 Effective Decision Making in Today’s World 88 Guidelines for Effective Decision Making 89 Design Thinking and Decision Making 90 Big Data and Decision Making 90 Boxed Features It’s Your Career: Problem Solving—Not A Problem 72 FYI 77, 81, 87, 90 Let’s Get REAL 80 Future Vision: Who Makes the Decisions, Person or Machine? 83 Leader Making a Difference: Elon Musk 85 Preparing for: Exam/Quizzes 91 Chapter Summary by Learning Objectives 91 Review and Discussion Questions 93 Preparing for: My Career 93 Personal Inventory Assessments: Solving Problems Analytically and Creatively 93  Contents 9 Ethics Dilemma 93 Skill Exercise: Developing Your Creativity Skill 94 Working Together: Team Exercise 94 My Turn to Be a Manager 95 Case Application 1: Tasting Success 95 Case Application 2: The Business of Baseball 96 Part 1: Management Practice 98 A Manager’s Dilemma 98 Global Sense 98 Continuing Case: Starbucks—Introduction 98 Part 2 Basics of Managing in Today’s Workplace 102 Chapter 3: Managing the External Environment and the Organization’s Culture 102 The Manager: Omnipotent or Symbolic? 104 The Omnipotent View 104 The Symbolic View 104 The External Environment: Constraints and Challenges 105 The Economic Environment 106 The Demographic Environment 106 How the External Environment Affects Managers 108 Organizational Culture: Constraints and Challenges 111 What Is Organizational Culture? 111 Strong Cultures 114 Where Culture Comes From and How It Continues 114 How Employees Learn Culture 116 How Culture Affects Managers 117 Current Issues in Organizational Culture 119 Creating an Innovative Culture 119 Creating a Customer-Responsive Culture 119 Spirituality and Organizational Culture 120 Boxed Features It’s Your Career: Reading an Organization’s Culture: Find One Where You’ll Be Happy 102 Future Vision: Tomorrow’s Workforce: More Diverse Than Ever 107 Let’s Get REAL 108, 115 Leader Making a Difference: Akio Toyoda 110 FYI 111 Preparing for: Exam/Quizzes 122 Chapter Summary by Learning Objectives 122 Review and Discussion Questions 123 Preparing for: My Career 123 Personal Inventory Assessments: What’s My Comfort with Change? 123 Ethics Dilemma 123 Skill Exercise: Developing Your Environmental Scanning Skill 124 10 Contents Working Together: Team Exercise 124 Learning to Be a Manager 124 Case Application 1: Going to Extremes 125 Case Application 2: Not Sold Out 126 Chapter 4: Managing in a Global Environment 128 Who Owns What? 130 What’s Your Global Perspective? 131 Understanding the Global Environment 132 Regional Trading Alliances 132 Global Trade Mechanisms 135 Doing Business Globally 136 Different Types of International Organizations 137 How Organizations Go International 138 Managing in a Global Environment 139 The Political/Legal Environment 139 The Economic Environment 140 The Cultural Environment 141 Global Management in Today’s World 144 Challenges of Managing a Global Workforce 146 Boxed Features It’s Your Career: Developing Your Global Perspective—Working with People from Other Cultures 128 FYI 131, 137 Leader Making a Difference: Christine Lagarde 136 Future Vision: The Internet: A Necessary Ingredient of a Global World? 140 Let’s Get REAL 145 Preparing for: Exam/Quizzes 147 Chapter Summary by Learning Objectives 147 Review and Discussion Questions 148 Preparing for: My Career 149 Personal Inventory Assessments: Intercultural Sensitivity Scale 149 Ethics Dilemma 149 Skill Exercise: Developing Your Collaboration Skill 149 Working Together: Team Exercise 150 My Turn to Be a Manager 150 Case Application 1: Dirty Little Secret 150 Case Application 2: Global Stumble 151 Answers to “Who Owns What” Quiz 153 Chapter 5: Managing Diversity 154 Diversity 101 156 What Is Workplace Diversity? 156 Why Is Managing Workforce Diversity So Important? 156 The Changing Workplace 160 Characteristics of the U.S. Population 160 What About Global Workforce Changes? 161  Contents 11 Types of Workplace Diversity 163 Age 163 Gender 164 Race and Ethnicity 165 Disability/Abilities 166 Religion 168 LGBT: Sexual Orientation and Gender Identity 169 Other Types of Diversity 170 Challenges in Managing Diversity 170 Personal Bias 171 Glass Ceiling 172 Workplace Diversity Initiatives 173 The Legal Aspect of Workplace Diversity 173 Top Management Commitment to Diversity 174 Mentoring 175 Diversity Skills Training 175 Employee Resource Groups 176 Boxed Features It’s Your Career: Find a Great Sponsor/Mentor—Be a Great Protégé 154 Let’s Get REAL 159, 167 FYI 159, 161, 165, 173, 174 Future Vision: Trending Now: Global Diversity and Inclusion (D&I) 170 Leader Making a Difference: Dr. Rohini Anand 171 Preparing for: Exam/Quizzes 176 Chapter Summary by Learning Objectives 176 Review and Discussion Questions 177 Preparing for: My Career 178 Personal Inventory Assessments: Multicultural Awareness Scale 178 Ethics Dilemma 178 Skill Exercise: Developing Your Valuing Diversity Skill 178 Working Together: Team Exercise 179 My Turn to Be a Manager 179 Case Application 1: From Top to Bottom 180 Case Application 2: Women in Management at Deutsche Telekom 181 Chapter 6: Managing Social Responsibility and Ethics 182 What Is Social Responsibility? 184 From Obligations to Responsiveness to Responsibility 184 Should Organizations Be Socially Involved? 185 Green Management and Sustainability 187 How Organizations Go Green 188 Evaluating Green Management Actions 189 Managers and Ethical Behavior 190 Factors That Determine Ethical and Unethical Behavior 190 Ethics in an International Context 195 Encouraging Ethical Behavior 196 Employee Selection 197 Codes of Ethics and Decision Rules 197 12 Contents Leadership at the Top 199 Job Goals and Performance Appraisal 199 Ethics Training 200 Independent Social Audits 200 Protective Mechanisms 201 Social Responsibility and Ethics Issues in Today’s World 201 Managing Ethical Lapses and Social Irresponsibility 201 Social Entrepreneurship 203 Businesses Promoting Positive Social Change 203 Boxed Features It’s Your Career: How to Be Ethical When No One Else Seems to Be 182 FYI 187, 191, 199, 200, 202 Leader Making a Difference: Yvon Chouinard 188 Let’s Get REAL 189, 197 Future Vision: Building an Ethical Culture That Lasts 193 Preparing for: Exam/Quizzes 205 Chapter Summary by Learning Objectives 205 Review and Discussion Questions 206 Preparing for: My Career 207 Personal Inventory Assessments: Ethical Leadership Assessment 207 Ethics Dilemma 207 Skill Exercise: Developing Your Building Trust Skill 207 Working Together: Team Exercise 208 My Turn to Be a Manager 208 Case Application 1: A Novel Wellness Culture 209 Case Application 2: Lessons from Lehman Brothers: Will We Ever Learn? 210 Chapter 7: Managing Change and Innovation 212 The Change Process 214 Two Views of the Change Process 214 Types of Organizational Change 216 What Is Organizational Change? 216 Types of Change 217 Managing Resistance to Change 219 Why Do People Resist Change? 219 Techniques for Reducing Resistance to Change 220 Contemporary Issues in Managing Change 221 Changing Organizational Culture 222 Employee Stress 223 Making Change Happen Successfully 226 Stimulating Innovation 228 Creativity Versus Innovation 228 Stimulating and Nurturing Innovation 228 Structural Variables 229 Innovation and Design Thinking 232 Boxed Features It’s Your Career: Learning To Manage Your Stress 212 Let’s Get REAL 220, 225  Contents 13 FYI 222, 224, 226, 228, 229 Leader Making a Difference: Satya Nadella 222 Future Vision: Company-Mandated “Experiment” Time 229 Preparing for: Exam/Quizzes 233 Chapter Summary by Learning Objectives 233 Review and Discussion Questions 234 Preparing for: My Career 235 Personal Inventory Assessments: Are You a Type A Personality? 235 Ethics Dilemma 235 Skill Exercise: Developing Your Change Management Skill 235 Working Together: Team Exercise 236 My Turn to Be a Manager 236 Case Application 1: A.S. Watson Group 237 Case Application 2: Workplace Stress Can Kill 238 Part 2: Management Practice 240 A Manager’s Dilemma 240 Global Sense 240 Continuing Case: Starbucks—Basics of Managing in Today’s Workplace 240 Part 3 Planning 246 Chapter 8: Planning Work Activities 246 The What and Why of Planning 248 What Is Planning? 248 Why Do Managers Plan? 248 Planning and Performance 248 Goals and Plans 249 Types of Goals 249 Types of Plans 250 Setting Goals and Developing Plans 252 Approaches to Setting Goals 252 Developing Plans 256 Approaches to Planning 256 Contemporary Issues in Planning 257 How Can Managers Plan Effectively in Dynamic Environments? 258 How Can Managers Use Environmental Scanning? 258 Boxed Features It’s Your Career: You Gotta Have Goals 246 FYI 249, 254, 258 Let’s Get REAL 250, 253 Leader Making a Difference: Jeff Bezos 251 Future Vision: Stretch Goals—Setting Goals That Aren’t Realistic 255 Preparing for: Exam/Quizzes 259 Chapter Summary by Learning Objectives 259 Review and Discussion Questions 261 14 Contents Preparing for: My Career 261 Personal Inventory Assessments: Tolerance of Ambiguity Scale 261 Ethics Dilemma 261 Skill Exercise: Developing Your Goal-Setting Skill 262 Skill Exercise: Making a To-Do List that Works and Using It 262 Working Together: Team Exercise 263 My Turn to Be a Manager 263 Case Application 1: Crisis Planning at Livestrong Foundation 264 Case Application 2: Shifting Direction 265 Chapter 9: Managing Strategy 266 Strategic Management 268 What Is Strategic Management? 268 Why Is Strategic Management Important? 268 The Strategic Management Process 270 Step 1: Identifying the Organization’s Current Mission, Goals, and Strategies 270 Step 2: Doing an External Analysis 271 Step 3: Doing an Internal Analysis 271 Step 4: Formulating Strategies 272 Step 5: Implementing Strategies 272 Step 6: Evaluating Results 272 Corporate Strategies 273 What Is Corporate Strategy? 273 What Are the Types of Corporate Strategy? 273 How Are Corporate Strategies Managed? 275 Competitive Strategies 275 The Role of Competitive Advantage 276 Choosing a Competitive Strategy 278 Current Strategic Management Issues 279 The Need for Strategic Leadership 280 The Need for Strategic Flexibility 281 Important Organizational Strategies for Today’s Environment 282 Boxed Features It’s Your Career: Learning Your Strengths and Weaknesses: Accentuate the Positive 266 FYI 271, 277, 283 Let’s Get REAL 272, 280 Leader Making a Difference: Jenna Lyons 274 Future Vision: Big Data As a Strategic Weapon 277 Preparing for: Exam/Quizzes 285 Chapter Summary by Learning Objectives 285 Review and Discussion Questions 286 Preparing for: My Career 287 Personal Inventory Assessments: Creative Style Indicator 287 Ethics Dilemma 287 Skill Exercise: Developing Your Business Planning Skill 287 Working Together: Team Exercise 288 My Turn to Be a Manager 289  Contents 15 Case Application 1: Fast Fashion 289 Case Application 2: Rewind and Replay 290 Creating and Leading Entrepreneurial Ventures Module 292 The Context of Entrepreneurship 292 Start-up and Planning Issues 295 Organizing Issues 302 Leading Issues 307 Controlling Issues 310 Part 3: Management Practice 316 A Manager’s Dilemma 316 Global Sense 316 Continuing Case: Starbucks—Planning 317 Part 4 Organizing 320 Chapter 10: Designing Organizational Structure—Basic Designs 320 Designing Organizational Structure 321 Work Specialization 322 Departmentalization 324 Chain of Command 324 Span of Control 329 Centralization and Decentralization 329 Formalization 331 Mechanistic and Organic Structures 332 Contingency Factors Affecting Structural Choice 333 Strategy and Structure 333 Size and Structure 334 Technology and Structure 334 Environmental Uncertainty and Structure 334 Traditional Organizational Designs 336 Simple Structure 336 Functional Structure 337 Divisional Structure 337 Boxed Features It’s Your Career: You Can’t Do It All: The Importance of Delegating 320 Let’s Get REAL 328, 331 FYI 329, 330 Leader Making a Difference: Zhang Ruimin 333 Future Vision: Workplace Hierarchy: Why It’s Still Important 335 Preparing for: Exam/Quizzes 338 Chapter Summary by Learning Objectives 338 Review and Discussion Questions 339 16 Contents Preparing for: My Career 339 Personal Inventory Assessments: Delegation Self Assessment 339 Ethics Dilemma 339 Skill Exercise: Developing Your Empowering People (Delegating) Skill - PART 2 340 Working Together: Team Exercise 340 My Turn to Be a Manager 341 Case Application 1: Ask Chuck 342 Case Application 2: A New Kind of Structure 343 Chapter 11: Designing Organizational Structure—Adaptive Designs 344 Contemporary Organizational Designs 346 Team Structures 346 Matrix and Project Structures 346 The Boundaryless Organization 348 Learning Organizations 350 Organizing for Collaboration 350 Internal Collaboration 351 External Collaboration 353 Flexible Work Arrangements 355 Telecommuting 355 Compressed Workweeks, Flextime, and Job Sharing 357 Contingent Workforce 358 Today’s Organizational Design Challenges 359 Keeping Employees Connected 359 Managing Global Structural Issues 360 Boxed Features It’s Your Career: Staying Connected 344 FYI 348, 355, 358, 359 Future Vision: Flexible Organizations 349 Let’s Get REAL 353, 356 Leader Making a Difference: John T. Chambers 359 Preparing for: Exam/Quizzes 361 Chapter Summary by Learning Objectives 361 Review and Discussion Questions 362 Preparing for: My Career 362 Personal Inventory Assessments: Organizational Structure Assessment 362 Ethics Dilemma 363 Skill Exercise: Developing Your Acquiring Power Skill 363 Working Together: Team Exercise 364 My Turn to Be a Manager 364 Case Application 1: You Work Where? 365 Case Application 2: Organizational Volunteers 366  Contents 17 Chapter 12: Managing Human Resources 368 The Human Resource Management Process 370 Why Is HRM Important? 370 External Factors That Affect the HRM Process 371 Identifying and Selecting Competent Employees 376 Human Resource Planning 376 Recruitment and Decruitment 377 Selection 378 Providing Employees with Needed Skills and Knowledge 382 Orientation 382 Employee Training 383 Retaining Competent, High-Performing Employees 385 Employee Performance Management 385 Compensation and Benefits 386 Contemporary Issues in Managing Human Resources 388 Managing Downsizing 388 Managing Sexual Harassment 388 Managing Work–Life Balance 391 Controlling HR Costs 392 Boxed Features It’s Your Career: Acing Your Interviews 368 Leader Making a Difference: Laszlo Bock 375 FYI 377, 386, 390 Let’s Get REAL 382, 390 Future Vision: 24/7 Work Life 392 Preparing for: Exam/Quizzes 393 Chapter Summary by Learning Objectives 393 Review and Discussion Questions 395 Preparing for: My Career 395 Personal Inventory Assessments: Work Performance Assessment 395 Ethics Dilemma 396 Skill Exercise: Developing Your Interviewing Skills 396 Working Together: Team Exercise 397 My Turn to Be a Manager 397 Case Application 1: Maersk and HR Management Challenges in China 397 Case Application 2: Stopping Traffic 398 Managing Your Career Module 400 Career Opportunities in Management 400 Chapter 13: Creating and Managing Teams 404 Groups and Group Development 406 What Is a Group? 406 Stages of Group Development 406 18 Contents Work Group Performance and Satisfaction 408 External Conditions Imposed on the Group 408 Group Member Resources 408 Group Structure 409 Group Tasks 415 Turning Groups into Effective Teams 416 What Is a Work Team? 417 Types of Work Teams 417 Creating Effective Work Teams 418 Current Challenges in Managing Teams 421 Managing Global Teams 421 Building Team Skills 423 Understanding Social Networks 423 Boxed Features It’s Your Career: Developing Your Coaching Skills 404 FYI 412, 416, 418, 419 Let’s Get REAL 414, 420 Future Vision: Conflict 2.0 416 Leader Making a Difference: Peter Löscher 422 Preparing for: Exam/Quizzes 424 Chapter Summary by Learning Objectives 424 Review and Discussion Questions 425 Preparing for: My Career 426 Personal Inventory Assessments: Diagnosing the Need for Team Building 426 Ethics Dilemma 426 Skill Exercise: Developing Your Coaching Skills 426 Working Together: Team Exercise 427 My Turn to Be a Manager 427 Case Application 1: Far and Wide 428 Case Application 2: 737 Teaming Up for Take Off 429 Part 4: Management Practice 430 A Manager’s Dilemma 430 Global Sense 430 Continuing Case: Starbucks—Organizing 430 Part 5 Leading 434 Chapter 14: Managing Communication 434 The Nature and Function of Communication 435 What Is Communication? 436 Functions of Communication 436 Methods of Interpersonal Communication 437 Effective Interpersonal Communication 440 Barriers to Communication 440 Overcoming the Barriers 441  Contents 19 Organizational Communication 443 Formal Versus Informal Communication 444 Direction of Communication Flow 444 Organizational Communication Networks 445 Workplace Design and Communication 447 Information Technology and Communication 448 How Technology Affects Managerial Communication 448 How Information Technology Affects Organizations 450 Communication Issues in Today’s Organizations 450 Managing Communication in an Internet World 450 Managing the Organization’s Knowledge Resources 451 The Role of Communication in Customer Service 452 Getting Employee Input 453 Communicating Ethically 453 Boxed Features It’s Your Career: He Says... She Says 434 Leader Making a Difference: Tony Hsieh 440 FYI 441, 444, 447 Let’s Get REAL 442, 446 Future Vision: Office of Tomorrow 449 Preparing for: Exam/Quizzes 454 Chapter Summary by Learning Objectives 454 Review and Discussion Questions 456 Preparing for: My Career 456 Personal Inventory Assessments: Communication Styles 456 Ethics Dilemma 456 Skill Exercise: Developing Your Active Listening Skill 457 Working Together: Team Exercise 457 My Turn to Be a Manager 457 Case Application 1: E-Mail Ban 458 Case Application 2: Neutralizing the Concordia Effect! 459 Chapter 15: Understanding and Managing Individual Behavior 460 Focus and Goals of Organizational Behavior 462 Focus of Organizational Behavior 462 Goals of Organizational Behavior 463 Attitudes and Job Performance 463 Job Satisfaction 464 Job Involvement and Organizational Commitment 466 Employee Engagement 466 Attitudes and Consistency 467 Cognitive Dissonance Theory 467 Attitude Surveys 468 Implications for Managers 469 20 Contents Personality 469 MBTI® 469 The Big Five Model 471 Additional Personality Insights 471 Personality Types in Different Cultures 473 Emotions and Emotional Intelligence 474 Implications for Managers 476 Perception 477 Factors That Influence Perception 477 Attribution Theory 478 Shortcuts Used in Judging Others 479 Implications for Managers 480 Learning 480 Operant Conditioning 480 Social Learning 481 Shaping: A Managerial Tool 482 Implications for Managers 482 Contemporary Issues in Organizational Behavior 483 Managing Generational Differences 483 Managing Negative Behavior in the Workplace 484 Boxed Features It’s Your Career: Self Awareness: You Need to Know Yourself Before You Can Know Others 460 FYI 464, 467, 475, 483 Leader Making a Difference: Goh Choon Phong 468 Let’s Get REAL 474, 481 Future Vision: Employee Surveys... Anyplace, Anytime 475 Preparing for: Exam/Quizzes 485 Chapter Summary by Learning Objectives 485 Review and Discussion Questions 487 Preparing for: My Career 487 Personal Inventory Assessments: Emotional Intelligence Assessment 487 Ethics Dilemma 487 Skill Exercise: Developing Your Shaping Behavior Skill 488 Working Together: Team Exercise 488 My Turn to Be a Manager 488 Case Application 1: Great Place to Work 489 Case Application 2: Employees First 490 Chapter 16: Motivating Employees 492 What Is Motivation? 493 Early Theories of Motivation 494 Maslow’s Hierarchy of Needs Theory 494 McGregor’s Theory X and Theory Y 495 Herzberg’s Two-Factor Theory 496 Three-Needs Theory 497 Contemporary Theories of Motivation 498 Goal-Setting Theory 498 Reinforcement Theory 499  Contents 21 Designing Motivating Jobs 500 Equity Theory 503 Expectancy Theory 504 Integrating Contemporary Theories of Motivation 505 Current Issues in Motivation 507 Motivating in Challenging Economic Circumstances 508 Managing Cross-Cultural Motivational Challenges 508 Motivating Unique Groups of Workers 509 Designing Appropriate Rewards Programs 512 Boxed Features It’s Your Career: What Motivates You? 492 FYI 496, 500, 503, 508 Leader Making a Difference: Jim Goodnight 499 Let’s Get REAL 507, 514 Future Vision: Individualized Rewards 510 Preparing for: Exam/Quizzes 515 Chapter Summary by Learning Objectives 515 Review and Discussion Questions 516 Preparing for: My Career 517 Personal Inventory Assessments: Work Motivation Indicator 517 Ethics Dilemma 517 Skill Exercise: Developing Your Motivating Employees Skill 517 Working Together: Team Exercise 518 My Turn to Be a Manager 518 Case Application 1: Passion for the Outdoors and for People 519 Case Application 2: Best Practices at Best Buy 520 Chapter 17: Being an Effective Leader 522 Who Are Leaders and What Is Leadership? 523 Early Leadership Theories 524 Leadership Trait Theories 524 Leadership Behavior Theories 524 Contingency Theories of Leadership 527 The Fiedler Model 527 Hersey and Blanchard’s Situational Leadership Theory 529 Path-Goal Model 530 Contemporary Views of Leadership 532 Leader–Member Exchange (LMX) Theory 532 Transformational-Transactional Leadership 532 Charismatic-Visionary Leadership 533 Team Leadership 534 Leadership Issues in the Twenty-First Century 536 Managing Power 536 Developing Trust 536 Empowering Employees 538 Leading Across Cultures 539 Becoming an Effective Leader 540 22 Contents Boxed Features It’s Your Career: Being a More Charismatic Leader 522 FYI 524, 530, 532, 533, 540 Leader Making a Difference: Ajay Banga 532 Let’s Get REAL 535, 537 Future Vision: Flexible Leadership 540 Preparing for: Exam/Quizzes 541 Chapter Summary by Learning Objectives 541 Review and Discussion Questions 543 Preparing for: My Career 543 Personal Inventory Assessments: Leadership Style Inventory 543 Ethics Dilemma 543 Skill Exercise: Developing Your Choosing an Effective Leadership Style Skill 544 Working Together: Team Exercise 544 My Turn to Be a Manager 545 Case Application 1: Growing Leaders 545 Case Application 2: Serving Up Leaders 546 Part 5: Management Practice 548 A Manager’s Dilemma 548 Global Sense 549 Continuing Case: Starbucks—Leading 550 Part 6 Controlling 554 Chapter 18: Monitoring and Controlling 554 What Is Controlling and Why Is It Important? 556 The Control Process 557 Step 1: Measuring Actual Performance 558 Step 2: Comparing Actual Performance Against the Standard 559 Step 3: Taking Managerial Action 560 Managerial Decisions in Controlling 560 Controlling for Organizational and Employee Performance 561 What Is Organizational Performance? 561 Measures of Organizational Performance 562 Controlling for Employee Performance 563 Tools for Measuring Organizational Performance 564 Feedforward/Concurrent/Feedback Controls 565 Financial Controls 566 Information Controls 567 Balanced Scorecard 569 Benchmarking of Best Practices 569 Contemporary Issues in Control 570 Adjusting Controls for Cross-Cultural Differences and Global Turmoil 570 Workplace Concerns 571  Contents 23 Workplace Violence 574 Controlling Customer Interactions 575 Corporate Governance 576 Boxed Features It’s Your Career: How to Be a Pro at Giving Feedback 554 FYI 563, 569, 571 Let’s Get REAL 564, 566 Leader Making a Difference: Bob Iger 569 Future Vision: Wearable Technology: Eyes (and Ears) Checking Up on You 572 Preparing for: Exam/Quizzes 577 Chapter Summary by Learning Objectives 577 Review and Discussion Questions 578 Preparing for: My Career 579 Personal Inventory Assessments: Workplace Discipline Indicator 579 Ethics Dilemma 579 Skill Exercise: Dealing with Difficult People 579 Working Together: Team Exercise 580 My Turn to Be a Manager 581 Case Application 1: Top Secret 581 Case Application 2: Deepwater in Deep Trouble 582 Planning and Control Techniques Module 584 Techniques for Assessing the Environment 584 Techniques for Allocating Resources 589 Contemporary Planning and Control Techniques 596 Managing Operations Module 599 The Role of Operations Management 600 What Is Value Chain Management and Why Is It Important? 602 What Is Value Chain Management? 602 Managing Operations Using Value Chain Management 604 Current Issues in Managing Operations 608 Part 6: Management Practice 614 A Manager’s Dilemma 614 Global Sense 614 Continuing Case: Starbucks—Controlling 615 Endnotes 618 Glossary 672 Name Index 684 Organization Index 703 Subject Index 708 This page intentionally left blank  Preface Welcome to the thirteenth edition of Management! The workplace and the field of management have changed a lot since the first edition of this book appeared in 1984. This book, of course, has changed along with them. As new theories and research have been published, expanding our knowledge about what makes an effective manager, we changed the book to reflect it. What you have before you, then, is a summary of the latest knowledge on effective management. But students have also changed a lot since 1984. Today’s students want more relevance from their management textbook. They want both knowledge and skills. Students want to leave class knowing what management is all about but also with the skills necessary to help them succeed in today’s workplaces... whether in an accounting firm, a manufacturing organization, a retail business, a marketing services company, a high-tech firm, or a government agency. Despite the changing face of today’s workplace and workforce, cer- tain skills are essential for both being an effective and efficient employee and for moving into a managerial path. These skills are the focus of our new It’s Your Career chapter openers, which cover skills ranging from managing time and being self aware to being a pro at giving feedback and being change ready. Key Changes to the 13th Edition Our book is solidly skill- and career-focused. Our book will prepare your students for the job market. Other Important Changes A Future Vision feature is found in each chapter, giving a sneak peak at what the work world may look like for your students. A Personal Inventory Assessment (PIA) has been included in each chapter. The decision making chapter has been moved to the introductory Part 1 because everything a manager does involves decision making. Part 2 has been expanded to include chapters dealing with the basics of managing in ­today’s workplace—environment/culture (Chapter 3), global scope (Chapter 4), diversity (Chapter 5), social responsibility/ethics (Chapter 6), and change/innovation (Chapter 7). The control chapter (Chapter 18) has been moved to its own part (Part 6). MyManagementLab components are clearly linked to chapter material. Current and timely topics—including big data, gamification, wearable technology, and ­social media, among others—have been added. We’ve listened to what you and employers are saying. In response, we’ve focused this revision of Management on emphasizing the work skills that both future managers and successful ­employees need. To get a good job, it’s no longer enough to “have a college degree” or “have good grades.” Today’s grads need to be able to hit the ground running. That means students have to be developing the right skills to prepare themselves for that good job! We help them do this in two ways: First, our new It’s Your Career chapter openers. These openers are writ- ten about critical work skills that employers are looking for and include information about the skill and an author-created MyManagementLab component that tests students’ compre- hension of this skill. The first step in gaining and being able to exhibit a skill is knowing what that skill involves. Here’s a list of these skills (in chapter order): managing time, being a better decision maker, reading an organization’s culture to find one where you’ll be happy, develop- ing your global perspective, finding a great mentor, being ethical when no one else seems to be, 25 26 Preface being change ready, setting goals, learning your personal strengths and weaknesses, delegating, staying in the organizational loop, acing your interviews, maximizing outcomes through negotiation, knowing how men and women communicate, being self aware, knowing what m ­ otivates you, becoming a leader, and giving feedback like a pro. Second, we have retained our end-of-chapter skill exercises that provide a thorough discussion of additional skills and give students opportunities to “practice” these skills. In addition to our skills emphasis, we have included in this revision a Future Vision feature in each chapter. Although no one has a perfectly accurate window to the future, certain trends in place today offer insights into what tomorrow’s work world will be like. We provide a sneak peek into that work world your students are likely to be encountering. We also made some changes in the Table of Contents. We moved the decision making chapter to the first part—the introduction—since everything a manager does involves making decisions. We expanded the second part to include chapters deal- ing with the basics of managing in today’s workplace (environment/culture, global, diversity, social responsibility/ethics, and change/innovation). We moved the control chapter back to its own part. And we moved the entrepreneurial ventures material to the planning part. Finally, as usual, we’ve included information about new topics that students are being exposed to including big data, gamification, leaning in, twenty-percent-time in- novation initiatives, stretch goals, social media, and wearable technology, among others. Although these key changes are important to this revision, we’ve still retained what has differentiated Robbins/Coulter for years... our “real” managers. Both of us taught for a number of years and we know that getting students interested in a subject such as management can be a challenge. What worked exceptionally well for us was showing students that management isn’t just some dry, boring subject that you learn about in a book but something vital that real people do in organizations every day. That’s why we’ve always incorporated “real” manag- ers into our textbook. Students can see how managers actually use the theories and approaches discussed in the chapters. And it’s the only principles textbook that presents management from the perspective of the people who actually do management. And that’s why we’ve retained our “real manager” emphasis. Using realistic manager scenarios specifically written for each chapter, our real managers describe how they would handle those issues. We think these will help get students excited about studying management and provide many avenues for class discussion. MyManagementLab Suggested Activities For the 13th edition we, the authors, are excited that Pearson’s MyManagementLab has been integrated fully into the text. These new features are outlined below. Making assessment activities available online for students to complete before coming to class will allow you, the professor, more discussion time during the class to review areas that students are having difficulty in comprehending. Watch It Recommends a video clip that can be assigned to students for outside classroom view- ing or that can be watched in the classroom. The video corresponds to the chapter material and is accompanied by multiple-choice questions that reinforce students’ comprehension of the chapter content. Try It Recommends a mini simulation that can be assigned to students as an outside classroom activity or be done in the classroom. As the students watch the simulation they will be asked to make choices based on the scenario presented in the simulation. At the end of  Preface 27 the simulation the student will receive immediate feedback based on the answers they gave. These simulations reinforce the concepts of the chapter and the students’ compre- hension of those concepts. Talk About It These are discussion-type questions that can be assigned as an activity within the classroom. Write It Students can be assigned these broad-based, critical-thinking discussion questions that will challenge them to assimilate information that they’ve read in the chapter. Personal Inventory Assessments (PIA) Students learn better when they can connect what they are learning to their personal experience. PIA (Personal Inventory Assessments) is a collection of online exercises designed to promote self-reflection and engagement in students, enhancing their ability to connect with concepts taught in principles of management, organizational behavior, and human resource management classes. Assessments are assignable by instructors who can then track students’ completions. Student results include a written explanation along with a graphic display that shows how their results compare to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion. Assisted Graded Writing Questions These are short essay questions that the students can complete as an assignment and submit to you, the professor, for grading. Chapter-by-Chapter Changes Chapter 1 New It’s Your Career opener and MyManagmentLab component: The ABC’s of Managing Your Time New Future Vision: Is It Still Managing When What You’re Managing Are Robots? New FYI features New Watch It, Try It, Write It MyManagementLab links New examples New Personal Inventory Assessment New Case Application on Zappos’s holacracy Chapter 2 New It’s Your Career opener and MyManagementLab component: Problem Solving—Not A Problem! New Leader Making a Difference: Elon Musk (Tesla/SpaceX/SolarCity) New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment New Ethics Dilemma New Case Application on Coca Cola’s use of big data Chapter 3 New It’s Your Career opener and MyManagementLab component: Reading an Organization’s Culture: Find One Where You’ll Be Happy New FYI features New Watch It, Try It MyManagementLab links New Personal Inventory Assessment Updated Case Applications 28 Preface Chapter 4 New It’s Your Career opener and MyManagementLab component: Developing Your Global Perspective: Jump-start Your Cultural Intelligence New Future Vision: The Internet: A Necessary Ingredient of a Global World? New Leader Making a Difference: Christine LeGarde (IMF) New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment Updated Case Applications Chapter 5 New It’s Your Career opener and MyManagementLab component: Find a Great Sponsor/Mentor—Be a Great Protégé New Future Vision: Trending Now: Global Diversity & Inclusion New FYI features New Watch It, Try It MyManagementLab links New Personal Inventory Assessment Updated Case Applications Chapter 6 New It’s Your Career opener and MyManagementLab component: How To Be Ethical When No One Else Seems to Be New Future Vision: Building an Ethical Culture That Lasts New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment New Ethics Dilemma Updated Case Applications Chapter 7 New It’s Your Career opener and MyManagementLab component: Learning To Manage Your Stress New Leader Making a Difference: (Satya Nadella, Microsoft) New Future Vision: Company-Mandated Experiment Time New FYI features New Watch It, Try It MyManagementLab links New Personal Inventory Assessment New Team Exercise: Creativity Exercises New examples Updated Case Applications Chapter 8 New It’s Your Career opener and MyManagementLab component: You Gotta Have Goals New Future Vision: Stretch Goals New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment New additional Skill Exercise: Making To-Do Lists New Case Application: Livestrong Foundation Chapter 9 New It’s Your Career opener and MyManagementLab component: Learning Your Strengths and Weaknesses: Accentuate the Positive New Leader Making a Difference: Jenna Lyons, J. Crew New Future Vision: Big Data As a Strategic Weapon  Preface 29 New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment New Ethics Dilemma: Spying on Shoppers Updated Case Applications Chapter 10 New It’s Your Career opener and MyManagementLab component: You Can’t Do It All: The Importance of Delegating New Future Vision: Workplace Hierarchy: Why It’s Still Important New FYI features New Watch It, Try It MyManagementLab links New Personal Inventory Assessment Chapter 11 New It’s Your Career opener and MyManagementLab component: Staying in the Organizational Loop New FYI features New Watch It, Write It MyManagementLab links New examples New Personal Inventory Assessment New Case Application: Yahoo! Chapter 12 New It’s Your Career opener and MyManagementLab component: Acing Your Interview New Leader Making a Difference: Laszlo Bock, Google New FYI features New Watch It, Try It, Write It MyManagementLab links Updated statistics New Personal Inventory Assessment New Case Application: J. C. Penney Company Chapter 13 New It’s Your Career opener and MyManagementLab component: Developing Your Coaching Skills New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment Chapter 14 New It’s Your Career opener and MyManagementLab component: He Says— She Says New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment Chapter 15 New It’s Your Career opener and MyManagementLab component: Self Awareness: You Need to Know Yourself Before You Can Know Others New FYI features New Future Vision: Employee Surveys... Anyplace, Anytime New Watch It MyManagementLab links New Personal Inventory Assessment New Case Application: HCL Technologies 30 Preface Chapter 16 New It’s Your Career opener and MyManagementLab component: What Motivates You? New FYI features New Watch It, Try It, Write It MyManagementLab links New Personal Inventory Assessment New Ethics Dilemma: Too Much Openness in Open Book Management? New Team Exercise: Comparing It’s Your Career results Chapter 17 New It’s Your Career opener and MyManagementLab component: Being a More Charismatic Leader New Future Vision: Flexible Leadership New FYI features New Watch It, Try It MyManagementLab links New Personal Inventory Assessment New Case Application: Starbucks Leadership Lab Chapter 18 New It’s Your Career opener and MyManagementLab component: How To Be a Pro at Giving Feedback New Future Vision: Wearable Technology New FYI features New Watch It, Try It, Write It MyManagementLab links New examples New Personal Inventory Assessment New Skill Exercise: Dealing with Difficult People For Students Taking a Management Course: What This Course Is About and Why It’s Important This course and this book are about management and managers. Managers are one thing that all organizations—no matter the size, kind, or location—need. And there’s no doubt that the world managers face has changed, is changing, and will continue to change. The dynamic nature of today’s organizations means both rewards and chal- lenges for the individuals who will be managing those organizations. Management is a dynamic subject, and a textbook on it should reflect those changes to help pre- pare you to manage under the current conditions. We’ve written this 13th edition of Management to provide you with the best possible understanding of what it means to be a manager confronting change and to best prepare you for that reality. Our Approach Our approach to management is simple: Management is about people. Managers manage people. Thus, we introduce you to real managers, real people who manage people. We’ve talked with these real managers and asked them to share their experi- ences with you. You get to see what being a manager is all about—the problems these real managers have faced and how they have resolved those problems. Not only do you have the benefit of your professor’s wisdom and knowledge, you also have access to your very own team of advisors and mentors. What’s Expected of the Student in This Course It’s simple. Come to class. Read the book. Do your assignments. And... study for your exams. If you want to get the most out of the money you’ve spent for this course and this textbook, that’s what you need to do. In addition to writing this book, we have taught management classes, and that’s what we expected of the students we taught.  Preface 31 User’s Guide Your management course may be described as a “survey” course because a lot of topics are covered very quickly, and none of the topics are covered in great depth. It can be overwhelming at times! Your classroom professor is your primary source of information and will provide you with an outline of what you’re expected to do during the course. That’s also the person who will be evaluating your work and assigning you a grade, so pay attention to what is expected of you! View us, your textbook authors, as your sup- plementary professors. As your partners in this endeavor, we’ve provided you the best information possible both in the textbook and in the materials on MyManagementLab to help you succeed in this course. Now it’s up to you to use them! Getting the Most Out of Your Textbook: Getting a Good Grade in This Course Professors use a textbook because it provides a compact source of information that you need to know about the course’s subject material. Professors like this particular textbook because it presents management from the perspective of the people who actually do management—real managers. So take advantage of that and read what these real managers have to say. See how they’ve handled managerial problems. Learn about their management styles and think about how you might manage. In addition to what you can learn from these real managers, we provide several ways to help you get a good grade in this course. Use the review and discussion ques- tions at the end of the chapter. They provide a great way to see if you understand the material you’ve just read. Read about and practice the numerous management/work skills that we’ve in- cluded (at the beginning and end of each chapter). If you want to make yourself stand out when interviewing or when in line for a promotion, you’ve got to exhibit desired skills and attitudes. Although we can’t help you with your attitudes, we can— and do—help you with working on skills that will be important to your success. Finally, we include a wide variety of useful learning experiences both in the text- book and on MyManagementLab. From ethical dilemmas and skill-building exercises to case analyses and hands-on management tasks, we’ve provided a lot of things to make your management course fun and worthwhile. Your professor will tell you what assignments you will be expected to do. But you don’t need to limit your learning experiences to those. Try out some of the other activities, even if they aren’t assigned. We know you won’t be disappointed! Instructor Resources At the Instructor Resource Center, www.pearsonglobaleditions.com/Robbins, instruc- tors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical sup- port team is ready to help with the media supplements that accompany this text. Visit http://247.pearsoned.com for answers to frequently asked questions and toll-free user support phone numbers. The following supplements are available with this text: Instructor’s Resource Manual Test Bank TestGen® Computerized Test Bank PowerPoint Presentation 2015 Qualitative Business Video Library Additional videos illustrating the most important subject topics are available in MyManagementLab, under Instructor Resources: Business Today. 32 Preface CourseSmart* CourseSmart eTextbooks were developed for students looking to save the cost on required or recommended textbooks. Students simply select their eText by title or author and purchase immediate access to the content for the duration of the course using any major credit card. With a CourseSmart eText students can search for specific keywords or page numbers, take notes online, print out reading assignments that incorporate lecture notes, and bookmark important passages for later review. For more information or to purchase a CourseSmart eTextbook, visit www.coursesmart.com. *This product may not be available in all markets. For more details, please visit www.coursesmart.co.uk or contact your local Pearson representative.  Acknowledgments Every author relies on the comments of reviewers, and ours have been very helpful. We want to thank the following people for their insightful comments and suggestions for the 13th edition of Management: Michael Alleruzzo, St. Joseph University, PA Matthias Bollmus, Carroll University, WI Brione Burrows, Central Georgia Tech, GA M. Suzanne Clinton, University of Central Oklahoma, OK Dana J. Frederick, Missouri State University, MO Julia M. Fullick, Quinnipiac University, CT Karl Giulian, Atlantic Cape Community College, NJ Dan Morrell, Middle Tennessee State University, TN L. Renee Rogers, Forsyth Technical Community College, NC Pearson would like to thank and acknowledge Jon and Diane Sutherland for their contributions to this Global Edition. Pearson would also like to thank Marcello Russo, Kedge Business School; Humphry Hung, Hong Kong Polytechnic University; and Noor Hazlina Ahmad, Universiti Sains Malaysia for reviewing the content and sharing their feedback to improve the global content. Our team at Pearson has been amazing to work with, as always! This team of editors, production experts, technology gurus, designers, marketing specialists, sales representatives, and warehouse employees works hard to turn our files into a bound textbook and a digital textbook and sees that it gets to faculty and students. We couldn’t do this without all of you! Our sincere thanks to the people who made this book “ready to go,” including Kris Ellis-Levy, Sarah Holle, Kelly Warsak, Stephanie Wall, Judy Leale, Nancy Moudry, and Janet Slowik, as well as Allison Campbell and the team at Integra. All of you are consummate professionals who truly are committed to publishing the best textbooks! We’re glad to have you on our team! Finally, Steve would like to thank his wife, Laura, for her encouragement and support. Mary would like to thank her husband and family for being supportive and understanding and for patiently enduring her many hours at the computer! And Mary would like to thank Steve’s wife, Laura, for all her hard work on redoing many of the exhibits in the book! Laura... you are extremely talented, and I so appreciate your keen eye for design! Finally, Mary would like to acknowledge with much love her Wednesday night Bible study class... you ladies have been so supportive of me and you continue to be an important part of my life. Thank you! Part 1 Introduction to Management Chapter 1 Managers in the Workplace It’s Your Career The ABC’s of Managing Your Time Are you BUSY? Do you always seem to have a lot to do and never seem to get it done, or done on time, or are things done at the last minute under a lot of pressure and stress? If you’re like most people, the answer to these questions is YES! Well, maybe in a management textbook we need to do something about that by focusing on one aspect of management that can be tremendously useful to you...TIME MANAGEMENT! Time is a unique resource and one of your most valuable resources. First, if it’s wasted, it can never be replaced. People talk about saving time, but time can never actually be saved. Second, unlike resources Source: valentint/Fotolia such as money or talent, which are distributed unequally in the world, time is an equal-opportunity resource. Each one of us gets A key to success in exactly the same amount of time: 10,080 minutes a week. But as you have management and in your undoubtedly observed, some people are a lot more efficient in using their career is having good time allotment. Commit to improving your ability to manage those 10,080 minutes management skills. so you can be more efficient and effective—in your career and in your personal life! Here are some suggestions to help you better use your time: 1. Make and keep a list of all your current, upcoming, and routine goals. Know what needs to be done daily, weekly, and monthly. 2. Rank your goals according to importance. Not all goals are of equal importance. Given the limitations on your time, you want to make sure you give highest priority to the most important goals. 3. List the activities/tasks necessary to achieve your goals. What specific actions do you need to take to achieve your goals? 4. Divide these activities/tasks into categories using an A, B, and C classification. The As are important and urgent. Bs are either important or urgent, but not both. Cs are routine—not important nor urgent, but still need to be done.  MyManagementLab® Improve Your Grade! When you see this icon, visit www.mymanagementlab.com for activities that are ­applied, personalized, and offer immediate feedback. Learning Objectives Skill Outcomes 1 Explain why managers are important to organizations. 2 Tell who managers are and where they work. Knowhow to manage your time. 3 Describe the functions, roles, and skills of managers. Develop your skill at being politically aware. 4 Describe the factors that are reshaping and redefining the manager’s job. 5 Explain the value of studying management. 5. Schedule your activities/tasks according your demanding tasks. Also, be realistic about what to the priorities you’ve set. Prepare a daily plan. you can achieve in a given time period. Every morning, or at the end of the previous 7. Realize that priorities may change as workday, make a list of the five or so most important your day or week proceeds. New information may things you want to do for the day. Then set priorities change a task’s importance or urgency. As you get for the activities listed on the basis of importance new information, reassess your list of priorities and and urgency. respond accordingly. 6. Plan your to-do list each day so that it 8. Remember that your goal is to manage includes a mixture of A, B, and C activities/ tasks. getting your work done as efficiently and effectively And it’s best to spread the three types of tasks as you can. It’s not to become an expert at creating throughout your day so you’re not lumping together all to-do lists. Find what works best for you and use it! Like many students, you’ve probably had a job (or two) at some time or another while working on your degree. And your work experiences, regardless of where you’ve worked, are likely to have been influenced by the skills and abilities of your manager. What are today’s successful managers like and what skills do they need in dealing with the problems and challenges of managing in the twenty-first century? This text is about the important work that managers do. The reality facing today’s managers— and that might include you in the near future—is that the world is changing. In work- places of all types—offices, stores, labs, restaurants, factories, and the like—managers deal with changing expectations and new ways of managing employees and organiz- ing work. In this chapter, we introduce you to managers and management by looking 35 36 Part 1 Introduction to Management at (1) why managers are important, (2) who managers are and where they work, and (3) what managers do. Finally, we wrap up the chapter by (4) looking at the factors reshaping and redefining the manager’s job and (5) discussing why it’s important to study management. Why are managers important? What can a great boss do? LO1 Inspire you professionally and personally Energize you and your coworkers to accomplish things together that you couldn’t get done by yourself Provide coaching and guidance with problems Provide you feedback on how you’re doing Help you to improve your performance Keep you informed of organizational changes Change your life1 If you’ve worked with a manager like this, consider yourself lucky. Such a man- ager can make going to work a lot more enjoyable and productive. However, even managers who don’t live up to such lofty ideals and expectations are important to organizations. Why? Let’s look at three reasons. The first reason why managers are important is because organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic times. As organizations deal with today’s challenges—changing workforce dynamics, the worldwide economic climate, changing technology, ever-increasing globalization, and so forth—managers play an important role in identifying critical issues and craft- ing responses. For example, at LVMH, the world’s luxury-goods leader, you’d expect to find a team of exceptionally talented and creative innovators like Karl Lagerfeld, Carol Lim, Marc Jacobs, and Phoebe Philo. In the luxury-goods business, creative design and prestigious brands are vital. But it takes more than that to be success- ful. In this competitive industry, it takes more than creative design... there has to be a focus on commercial potential. That’s why, behind the scenes, you’d also find a team of managers who scrutinize ideas and focus on the question: Is this marketable? These managers realize what is critical to success. The opposite “types” have worked together and created a successful business.2 Another reason why managers are important to organizations is because they’re critical to getting things done. For instance, AT&T has some 6,750 general managers who manage the work of thousands of frontline employees.3 These managers deal with all kinds of issues as the company’s myriad tasks are carried out. They create and coordinate the workplace environment and work systems so that others can per- form those tasks. Or, if work isn’t getting done or isn’t getting done as it should be, they’re the ones who find out why and get things back on track. And these managers are key players in leading the company into the future. Finally, managers do matter to organizations! How do we know that? The Gallup Organization, which has polled millions of employees and tens of thousands of managers, has found that the single most important variable in employee productiv- ity and loyalty isn’t pay or benefits or workplace environment—it’s the quality of the relationship between employees and their direct supervisors.4 In addition, global consulting firm Towers Watson found that the way a company manages and engages its people can significantly affect its financial performance.5 That’s scary considering another study by Towers Watson that found only 42 percent of respondents think their leaders inspire and engage them.6 In yet another study by different researchers, 44 percent of the respondents said their supervisors strongly increased engagement.7 However, in this same study, 41 percent of respondents also said their supervisors strongly decreased engagement. And, a different study of organizational performance found that managerial ability was important in creating organizational value.8 So, as  Chapter 1 Managers in the Workplace 37 you can see, managers can and do have an impact—posi- tive and negative. What can we conclude from such reports? Managers are important—and they do matter! Who are managers and where LO2 do they work? Managers may not be who or what you might expect! Managers can range in age from 18 to 80+. They run large corporations, medium-sized businesses, and en- trepreneurial start-ups. They’re also found in government departments, hospitals, not-for-profit agencies, museums, schools, and even nontraditional organizations such as political campaigns and music tours. Managers can also be Ajiti Banga is an associate product manager at found doing managerial work in every country on the globe. In addition, some man- Pocket Gems, a firm in San Francisco that makes agers are top-level managers while others are first-line managers. And today, manag- and publishes mobile games such as Pet Tap Hotel ers are just as likely to be women as they are men; however, the number of women and Paradise Cove. Collaborating with multiple in top-level manager positions remains low—only 45 women were CEOs of Fortune teams of engineers and designers, Banga manages games from initial concept through development to 1000 corporations in 2013.9 But no matter where managers are found or what gender product launch. they are, managers have exciting and challenging jobs! Source: REUTERS/Stephen Lam Who Is a Manager? It used to be fairly simple to define who managers were: They were the organizational members who told others what to do and how to do it. It was easy to differentiate managers from nonmanagerial employees. Now, it isn’t quite that simple. In many organizations, the changing nature of work has blurred the distinction between ­ managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include managerial activities.10 For example, at General Cable Corporation’s facil- ity in Moose Jaw, Saskatchewan, Canada, managerial responsibilities are shared by managers and team members. Most of the employees at Moose Jaw are cross-trained and multiskilled. Within a single shift, an employee can be a team leader, equipment operator, maintenance technician, quality inspector, or improvement planner.11 Or consider an organization like Morning Star Company, the world’s largest tomato pro- cessor, where no employees are called managers—just 400 full-time employees who do what needs to be done and who together “manage” issues such as job responsibil- ities, compensation decisions, and budget decisions.12 Sounds crazy, doesn’t it? But it works—for this organization. (See Case Application #1 at the end of the chapter to see how another business—Zappos—has gone bossless!) So, how do we define who managers are? A manager is someone who coordinates manager and oversees the work of other people so organizational goals can be accomplished. Someone who coordinates and A manager’s job is not about personal achievement—it’s about helping others do their oversees the work of other people so organizational goals can be work. That may mean coordinating the work of a departmental group, or it might accomplished mean supervising a single person. It could involve coordinating the work activities of a team with people from different departments or even people outside the organization such as temporary employees or individuals who work for the organization’s suppliers. Keep in mind that managers may also have work duties not related to coordinating and overseeing others’ work. For example, an insurance claims supervisor might process claims in addition to coordinating the work activities of other claims clerks. How can managers be classified in organizations? In traditionally structured organizations (often pictured as a pyramid because more employees are at lower or- ganizational levels than at upper organizational levels), managers can be classified as first-line, middle, or top. (See Exhibit 1-1.) At the lowest level of management, first-line (frontline) managers first-line (or frontline) managers manage the work of nonmanagerial employees Managers at the lowest level of who typically are involved with producing the organization’s products or servicing the management who manage the work of organization’s customers. These managers often have titles such as supervisors or even nonmanagerial employees 38 Part 1 Introduction to Management Exhibit 1-1 Levels of Management Top Managers Middle Managers First-Line Managers Nonmanagerial Employees middle managers shift managers, district managers, department managers, or office managers. Middle Managers between the lowest level managers manage the work of first-line managers and can be found between the and top levels of the organization who manage the work of first-line managers lowest and top levels of the organization. They may have titles such as regional ­manager, project leader, store manager, or division manager. At the upper levels of the top managers organization are the top managers, who are responsible for making organization- Managers at or near the upper levels wide decisions and establishing the plans and goals that affect the entire organization. of the organization structure who are responsible for making organization-wide These individuals typically have titles such as executive vice president, president, man- decisions and establishing the goals and aging director, chief operating officer, or chief executive officer. plans that affect the entire organization Not all organizations are structured to get work done using a traditional pyramidal form, however. Some organizations, for example, are more loosely configured, with work done by ever-changing teams of employees who move from one project to another as work demands arise. Although it’s not as easy to tell who the managers are in these organizations, we do know that someone must fulfill that role—that is, someone must coordinate and oversee the work of others, even if that “someone” changes as work tasks or projects change or that “someone” doesn’t necessarily have the title of manager. Where Do Managers Work? organization It’s obvious that managers work in organizations. But what is an organization? It’s a A deliberate arrangement of people to deliberate arrangement of people to accomplish some specific purpose. Your college accomplish some specific purpose or university is an organization; so are fraternities and sororities, government depart- ments, churches, Google, your neighborhood grocery store, the United Way, the St. Louis Cardinals baseball team, and the Mayo Clinic. All are considered organizations and have three common characteristics. (See Exhibit 1-2.) First, an organization has a distinct purpose typically expressed through goals FYI the organization hopes to accomplish. Second, each organization is composed of people. It takes people to perform the work that’s necessary for the organization to achieve its goals. Third, all organizations develop a deliberate structure within which members do their work. That structure may be open and flexible, with no specific job Frontline managers directly duties or strict adherence to explicit job arrangements. For instance, most big proj- supervise some 80 percent of ects at Google (at any one time, hundreds of projects are in process simultaneously) the total workforce.13 are tackled by small, focused employee teams that set up in an instant and complete 10.8 million middle managers work just as quickly.15 Or the structure may be more traditional—like that of Procter were in the U.S. workforce in & Gamble or General Electric or any large corporation—with clearly defined rules, 2012.14 regulations, job descriptions, and some members identified as “bosses” who have ­authority over other members. Exhibit 1-2 Characteristics of Organizations Distinct Deliberate