Fundamentals of Management, 8th Edition PDF Textbook

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 5 REASONS to buy your textbooks and course materials at SAVINGS: 1 Prices up to 75% off, daily coupons, and free shipping on orders over $25 CHOICE: 2 Multiple format options including textbook, eBook and eChapter rentals CONVENIENCE: 3 Anytime, anywhere access of eBooks or eChapters via mobile devices 4 SERVICE: Free eBook access while your text ships, and instant access to online homework products STUDY TOOLS: 5 Study tools* for your text, plus writing, research, career and job search resources * availability varies Find your course materials and start saving at: www.cengagebrain.com Source Code: 14M-AA0107 Engaged with you. www.cengage.com www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Fundamentals of MANAGEMENT Eighth Edition Ricky W. Griffin Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. portant otice e ia content reference ithin the pro ct escription or the pro ct te t a not e availa le in the e oo version www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Fundamentals of Management, © 2016, 2011 Cengage Learning Eighth Edition WCN: 02-200-203 Ricky W. Griffin ALL RIGHTS RESERVED. No part of this work covered by the copyright Vice President, General Manager, Social herein may be reproduced, transmitted, stored, or used in any form or by Science & Qualitative Business: Erin any means graphic, electronic, or mechanical, including but not limited Joyner to photocopying, recording, scanning, digitizing, taping, web distribution, Product Director: Michael Schenk information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Senior Product Manager: Scott Person Copyright Act, without the prior written permission of the publisher. 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May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  For Matt and Lura—Thank you for what you add to our family. www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Brief Contents Preface xxi Acknowledgments xxv PART 1 An Introduction to Management CHAPTER 1 Understanding the Manager’s Job 1 CHAPTER 2 The Environments of Organizations and Managers 34 PART 2 Planning CHAPTER 3 Planning and Strategic Management 65 CHAPTER 4 Managing Decision Making 98 CHAPTER 5 Entrepreneurship and New Venture Management 127 PART 3 Organizing CHAPTER 6 Organization Structure and Design 159 CHAPTER 7 Organization Change and Innovation 191 CHAPTER 8 Managing Human Resources in Organizations 223 PART 4 Leading CHAPTER 9 Basic Elements of Individual Behavior in Organizations 260 CHAPTER 10 Managing Employee Motivation and Performance 292 CHAPTER 11 Leadership and Influence Processes 326 CHAPTER 12 Communication in Organizations 361 CHAPTER 13 Managing Work Groups and Teams 391 PART 5 Controlling CHAPTER 14 Basic Elements of Control 424 CHAPTER 15 Managing Operations, Quality, and Productivity 456 Appendix: Interpretations of Skills Self-Assessment Instruments 490 Name Index 502 Organization and Product Index 505 Subject Index 510 v www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents Preface................................................................. xxi Acknowledgments........................................................xxv PART 1 An Introduction to Management CHAPTER 1 Understanding the Manager’s Job.............................................. 1 An Introduction to Management 3 Kinds of Managers 4 Levels of Management, 4 Managing in Different Areas of the Organization, 5 Basic Management Functions 6 Planning and Decision Making, 6 Organizing, 6 Leading, 7 Controlling, 7 Fundamental Management Skills 7 Toward Zero Waste 8 Technical Skills, 8 Interpersonal Skills, 8 Conceptual Skills, 8 Diagnostic Skills, 9 Communication Skills, 9 Decision-Making Skills, 9 Time Management Skills, 9 The Science and the Art of Management 9 The Science of Management, 9 The Art of Management, 10 The Evolution of Management 10 The Importance of Theory and History 11 Why Theory?, 11 Why History?, 11 The Historical Context of Management 11 The Classical Management Perspective 12 Scientific Management, 12 Administrative Management, 13 The Classical Management Perspective Today, 14 The Behavioral Management Perspective 14 The Hawthorne Studies, 15 The Human Relations Movement, 16 Contemporary Behavioral Science in Management, 17 The Behavioral Management Perspective Today, 17 The Quantitative Management Perspective 17 Management Science, 17 Operations Management, 18 The Quantitative Management Perspective Today, 19 Contemporary Management Perspectives 19 The Systems Perspective 19 The Contingency Perspective 20 Contemporary Management Issues and Challenges 21 Contemporary Applied Perspectives, 21 Contemporary Management Challenges, 21 The Rise of the Service Sector 23 Summary of Learning Outcomes and Key Points 24 Discussion Questions 25 Building Effective Time Management Skills 26 Building Effective Decision-Making Skills 26 vi www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents vii Skills Self-Assessment Instrument 27 Experiential Exercise 28 Management at Work 29 You Make the Call: Reed Hastings Doesn’t Like Standing Still 31 Endnotes 31 CHAPTER 2 The Environments of Organizations and Managers............................. 34 The Organization’s Environments 37 The General Environment 37 The Economic Dimension, 37 The Technological Dimension, 37 What Goes Around … 38 The Political–Legal Dimension, 38 The Task Environment 39 Competitors, 39 Customers, 39 Supplier, 39 Regulators, 40 Strategic Partners, 40 The Internal Environment 41 Owners, 41 Board of Directors, 42 Employees, 42 Physical Work Environment, 42 The Ethical and Social Environment of Management 43 Individual Ethics in Organizations 43 Managerial Ethics, 43 Managing Ethical Behavior, 44 Emerging Ethical Issues 45 Ethical Leadership, 45 Corporate Governance, 46 Ethics and Information Technology, 46 Social Responsibility in Organizations 47 Arguments for Social Responsibility, 47 Arguments Against Social Responsibility, 47 Managing Social Responsibility 48 Formal Organizational Dimensions, 48 Greening the Business Environment: HP Keeps Itself in the Recycling Loop 49 Informal Organizational Dimensions, 50 The International Environment of Management 51 Trends in International Business 51 Levels of International Business Activity 51 Exporting and Importing, 52 Licensing, 52 Strategic Alliances, 53 Direct Investment, 53 The Context of International Business 53 The Cultural Environment, 53 Controls on International Trade, 54 Economic Communities, 55 The Role of the GATT and WTO, 56 The Organization’s Culture 56 The Importance of Organizational Culture 56 Determinants of Organizational Culture 57 Managing Organizational Culture 57 Summary of Learning Outcomes and Key Points 58 Discussion Questions 58 Building Effective Interpersonal Skills 59 Building Effective Communication Skills 60 Skills Self-Assessment Instrument 60 Experiential Exercise 61 Management at Work 61 You Make the Call: Social Entrepreneurship at Its Finest 63 Endnotes 63 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. viii Contents PART 2 Planning CHAPTER 3 Planning and Strategic Management.......................................... 65 Planning and Organizational Goals 67 Organizational Goals 68 Purposes of Goals, 68 Kinds of Goals, 69 Kinds of Organizational Plans 69 Strategic Plans, 69 Tactical Plans, 69 Setting a New Direction for General Motors 70 Operational Plans, 70 The Nature of Strategic Management 71 The Components of Strategy 71 Types of Strategic Alternatives 72 Using SWOT Analysis to Formulate Strategy 72 Evaluating an Organization’s Strengths 72 Evaluating an Organization’s Weaknesses 74 Evaluating an Organization’s Opportunities and Threats 74 Formulating Business-Level Strategies 74 Porter’s Generic Strategies 74 Strategies Based on the Product Life Cycle 75 Formulating Corporate-Level Strategies 77 Single-Product Strategy 77 Related Diversification 77 Unrelated Diversification 78 Managing Diversification, 79 BCG Matrix, 79 The Little-White-Lie Strategy 80 GE Business Screen 82 Tactical Planning 83 Developing Tactical Plans 83 Executing Tactical Plans 84 Operational Planning 84 Single-Use Plans 85 Programs, 85 Projects, 85 Standing Plans 85 Policies, 86 Standard Operating Procedures, 86 Rules and Regulations, 86 Contingency Planning and Crisis Management 86 Summary of Learning Outcomes and Key Points 89 Discussion Questions 90 Building Effective Decision-Making Skills 91 Building Effective Communication and Interpersonal Skills 91 Skills Self-Assessment Instrument 92 Experiential Exercise 93 Management at Work 94 You Make the Call: Google’s Strategy for Dominance 96 Endnotes 96 CHAPTER 4 Managing Decision Making................................................... 98 The Nature of Decision Making 100 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents ix Decision Making Defined 100 Types of Decisions 101 Decision-Making Conditions 102 Decision Making Under Certainty, 102 Decision Making Under Risk, 102 Decision Making Under Uncertainty, 103 The Wide World of Risk 104 Rational Perspectives on Decision Making 104 The Classical Model of Decision Making 104 Steps in Rational Decision Making 105 Recognizing and Defining the Decision Situation, 105 Identifying Alternatives, 105 Evaluating Alternatives, 107 Selecting the Best Alternative, 108 Implementing the Chosen Alternative, 108 Following Up and Evaluating the Results, 109 Evidence-Based Management 110 Behavioral Aspects of Decision Making 111 The Administrative Model 111 Political Forces in Decision Making 112 Intuition and Escalation of Commitment 113 Intuition, 113 Escalation of Commitment, 113 A Bad Decision at Wesabe 114 Risk Propensity and Decision Making 115 Ethics and Decision Making 115 Group and Team Decision Making in Organizations 116 Forms of Group and Team Decision Making 116 Interacting Groups or Teams, 116 Delphi Groups, 116 Nominal Groups, 117 Advantages of Group and Team Decision Making 117 Disadvantages of Group and Team Decision Making 118 Managing Group and Team Decision-Making Processes 118 Summary of Learning Outcomes and Key Points 119 Discussion Questions 119 Building Effective Conceptual Skills 120 Building Effective Technical Skills 120 Skills Self-Assessment 121 Experiential Exercise 121 Management at Work 122 You Make the Call: The Embargo Grinds On 124 Endnotes 124 CHAPTER 5 Entrepreneurship and New Venture Management............................. 127 The Nature of Entrepreneurship 129 The Role of Entrepreneurship in Society 129 Job Creation 131 Innovation 132 Importance to Big Business 133 Strategy for Entrepreneurial Organizations 133 Choosing an Industry 133 Services, 133 Retailing, 134 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. x Contents A New Model for Going Green 135 Construction, 136 Finance and Insurance, 136 Wholesaling, 137 Transportation, 137 Manufacturing, 137 Emphasizing Distinctive Competencies 139 Identifying Niches in Established Markets, 139 Identifying New Markets, 139 Samuel Adams Makes Headway 140 First-Mover Advantages, 141 Writing a Business Plan 141 Entrepreneurship and International Management 141 Structure of Entrepreneurial Organizations 142 Starting the New Business 142 Buying an Existing Business, 142 Starting from Scratch, 143 Financing the New Business 143 Personal Resources, 143 Strategic Alliances, 144 Lenders, 144 Venture Capital Companies, 144 Small-Business Investment Companies, 144 SBA Financial Programs, 145 Sources of Management Advice 145 Advisory Boards, 145 Management Consultants, 145 The Small Business Administration, 146 Networking, 147 Franchising 147 The Performance of Entrepreneurial Organizations 148 Trends in Small-Business Start-Ups 149 Emergence of E-Commerce, 149 Crossovers from Big Business, 150 Opportunities for Minorities and Women, 150 Better Survival Rates, 151 Reasons for Failure 151 Reasons for Success 151 Summary of Learning Outcomes and Key Points 152 Discussion Questions 153 Building Effective Diagnostic Skills 153 Building Effective Conceptual Skills 154 Skills Self-Assessment Instrument 154 Experiential Exercise 155 Management at Work 155 You Make the Call: Putting the Greek into Yogurt 157 Endnotes 157 PART 3 Organizing CHAPTER 6 Organization Structure and Design........................................... 159 The Basic Elements Of Organizing 162 Job Specialization 162 Benefits and Limitations of Specialization, 162 Alternatives to Specialization, 162 Grouping Jobs: Departmentalization 164 Functional Departmentalization, 165 Product Departmentalization, 166 Customer Departmentalization, 166 Location Departmentalization, 166 Establishing Reporting Relationships 166 Chain of Command, 166 Span of Management, 167 Tall Versus Flat Organizations, 167 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents xi Distributing Authority 167 The Delegation Process, 167 Delayering as a Defense Mechanism 168 Decentralization and Centralization, 169 A Panel of Your Peers 170 Coordinating Activities 170 The Need for Coordination, 171 Structural Coordination Techniques, 171 Electronic Coordination, 172 The Bureaucratic Model of Organization Design 172 Situational Influences on Organization Design 173 Core Technology 174 Environment 175 Organizational Size and Life Cycle 176 Basic Forms of Organization Design 177 Functional (U-Form) Design 177 Conglomerate (H-Form) Design 178 Divisional (M-Form) Design 179 Matrix Design 179 Hybrid Designs 181 Emerging Issues in Organization Design 182 The Team Organization 182 The Virtual Organization 182 The Learning Organization 182 Summary of Learning Outcomes and Key Points 183 Discussion Questions 184 Building Effective Conceptual Skills 184 Building Effective Diagnostic Skills 185 Skills Self-Assessment Instrument 185 Experiential Exercise 186 Management at Work 187 You Make the Call: Authority & Function at A&F 189 Endnotes 189 CHAPTER 7 Organization Change and Innovation........................................ 191 The Nature of Organization Change 194 Forces for Change 194 External Forces, 194 Internal Forces, 195 Planned Versus Reactive Change 195 Managing Change in Organizations 195 Steps in the Change Process 196 The Lewin Model, 196 A Comprehensive Approach to Change, 196 Understanding Resistance to Change 197 Uncertainty, 197 Threatened Self-Interests, 198 Different Perceptions, 198 Feelings of Loss, 198 Overcoming Resistance to Change 198 Participation, 198 Charting a “New” Old Course 199 Education and Communication, 200 Facilitation, 200 Force-Field Analysis, 201 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xii Contents Areas of Organization Change 201 Changing Organization Structure and Design 201 Changing Technology and Operations 202 Changing People, Attitudes, and Behaviors 203 Changing Business Processes 204 The Need for Business Process Change, 204 To Offshore or Not to Offshore 205 Approaches to Business Process Change, 206 Organization Development 207 OD Assumptions, 207 OD Techniques, 207 The Effectiveness of OD, 208 Organizational Innovation 209 The Innovation Process 209 Innovation Development, 209 Innovation Application, 210 Application Launch, 210 Application Growth, 210 Innovation Maturity, 210 Innovation Decline, 210 Forms of Innovation 210 Radical Versus Incremental Innovations, 211 Technical Versus Managerial Innovations, 211 Product Versus Process Innovations, 211 The Failure to Innovate 212 Lack of Resources, 212 Failure to Recognize Opportunities, 212 Resistance to Change, 212 Promoting Innovation in Organizations, 213 The Reward System, 213 Organization Culture, 213 Intrapreneurship in Larger Organizations, 213 Summary of Learning Outcomes and Key Points 215 Discussion Questions 215 Building Effective Decision-Making Skills 216 Building Effective Diagnostic Skills 216 Skills Self-Assessment Instrument 217 Experiential Exercise 218 Management at Work 219 You Make the Call: Cultivating Innovation at IKEA 221 Endnotes 221 CHAPTER 8 Managing Human Resources in Organizations................................ 223 The Environmental Context of HRM 226 The Strategic Importance of HRM 226 The Legal Environment of HRM 227 Equal Employment Opportunity Title VII of the Civil Rights Act of 1964, 228 Compensation and Benefits, 228 Labor Relations 229 Health and Safety, 230 Emerging Legal Issues, 230 Attracting Human Resources 230 Human Resource Planning 230 Job Analysis, 230 Forecasting Human Resource Demand and Supply, 231 Matching Human Resource Supply and Demand, 232 Recruiting Human Resources 232 Selecting Human Resources 233 Application Blanks, 233 Tests, 234 Interviews, 234 Assessment Centers, 234 Other Techniques, 234 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents xiii Developing Human Resources 234 Training and Development 235 Assessing Training Needs, 235 Common Training Methods, 235 Evaluation of Training, 235 Darden Invests in Employee Development 236 Performance Appraisal 237 Common Appraisal Methods, 237 Errors in Performance Appraisal, 238 Performance Feedback 239 Maintaining Human Resources 240 Determining Compensation 240 Holding True at Nucor Steel 241 Wage-Level Decision, 242 Wage Structure Decision, 242 Individual Wage Decisions, 243 Determining Benefits 243 Managing Workforce Diversity 244 The Meaning of Diversity 244 The Impact of Diversity 244 Diversity as a Competitive Advantage, 244 Diversity as a Source of Conflict, 244 Managing Diversity in Organizations 245 Individual Strategies, 245 Organizational Approaches, 245 Managing Labor Relations 246 How Employees Form Unions 246 Collective Bargaining 248 New Challenges in the Changing Workplace 249 Managing Knowledge Workers 249 The Nature of Knowledge Work, 249 Knowledge Worker Management and Labor Markets, 249 Contingent and Temporary Workers 250 Trends in Contingent and Temporary Employment, 250 Managing Contingent and Temporary Workers, 250 Summary of Learning Outcomes and Key Points 251 Discussion Questions 252 Building Effective Decision-Making Skills 252 Building Effective Technical Skills 253 Skills Self-Assessment Instrument 254 Experiential Exercise 255 Management at Work 255 You Make the Call: No Company for Old-Fashioned Management 257 Endnotes 257 PART 4 Leading CHAPTER 9 Basic Elements of Individual Behavior in Organizations....................... 260 Understanding Individuals in Organizations 262 The Psychological Contract 262 The Person–Job Fit 263 The Nature of Individual Differences 264 Personality and Individual Behavior 264 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xiv Contents The “Big Five” Personality Traits 264 The Myers–Briggs Framework 266 Other Personality Traits at Work 267 Emotional Intelligence 268 Attitudes and Individual Behavior 269 Work-Related Attitudes 269 Job Satisfaction or Dissatisfaction, 269 Toss It, or Recycle It? 270 Organizational Commitment, 271 Affect and Mood in Organizations 271 Perception and Individual Behavior 272 Basic Perceptual Processes 272 Selective Perception, 272 Stereotyping, 272 Perception and Attribution 273 Stress and Individual Behavior 273 Causes and Consequences of Stress 275 Causes of Stress, 275 Consequences of Stress, 276 Managing Stress 276 When Stress Becomes Too Tough to Handle 277 Creativity in Organizations 279 The Creative Individual 279 Background Experiences and Creativity, 279 Personal Traits and Creativity, 280 Cognitive Abilities and Creativity, 280 The Creative Process 280 Preparation, 280 Incubation, 280 Insight, 281 Verification, 281 Enhancing Creativity in Organizations 281 Types of Workplace Behavior 282 Performance Behaviors 282 Withdrawal Behaviors 282 Organizational Citizenship 283 Dysfunctional Behaviors 283 Summary of Learning Outcomes and Key Points 284 Discussion Questions 285 Building Effective Interpersonal Skills 285 Building Effective Time Management Skills 286 Skills Self-Assessment Instrument 286 Experiential Exercise 287 Management at Work 287 You Make the Call: Putting In the Hours 289 Endnotes 289 CHAPTER 10 Managing Employee Motivation and Performance............................. 292 The Nature of Motivation 294 Content Perspectives on Motivation 295 The Needs Hierarchy Approach 296 The Two-Factor Theory 297 Individual Human Needs 298 Process Perspectives on Motivation 299 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents xv Expectancy Theory 299 Effort-to-Performance Expectancy, 300 Performance-to-Outcome Expectancy, 300 Outcomes and Valences, 300 The Porter–Lawler Extension, 301 Equity Theory 302 Goal-Setting Theory 302 Goal Difficulty, 303 Goal Specificity, 303 Reinforcement Perspectives on Motivation 304 Kinds of Reinforcement in Organizations 304 To Reward or To Punish? … That Is the Question 305 Providing Reinforcement in Organizations 306 Popular Motivational Strategies 307 Empowerment and Participation 307 Alternative Forms of Work Arrangements 307 Service with a Smile 308 Variable Work Schedules, 309 Flexible Work Schedules, 309 Job Sharing, 309 Telecommuting, 310 Using Reward Systems to Motivate Performance 310 Merit Reward Systems 311 Incentive Reward Systems 311 Incentive Pay Plans, 311 Other Forms of Incentive, 312 Team and Group Incentive Reward Systems 312 Common Team and Group Reward Systems 313 Other Types of Team and Group Rewards, 313 Executive Compensation 314 Standard Forms of Executive Compensation, 314 Special Forms of Executive Compensation, 314 Criticisms of Executive Compensation, 315 New Approaches to Performance-Based Rewards 316 Summary of Learning Outcomes and Key Points 316 Discussion Questions 317 Building Effective Interpersonal and Communication Skills 318 Building Effective Decision-Making Skills 318 Skills Self-Assessment Instrument 319 Experiential Exercise 319 Management at Work 321 You Make the Call: Motivating the Whole Person 323 Endnotes 323 CHAPTER 11 Leadership and Influence Processes........................................... 326 The Nature of Leadership 328 The Meaning of Leadership 329 Leadership and Management 329 Leadership and Power 329 Legitimate Power, 329 Reward Power, 330 Coercive Power, 331 Referent Power, 331 Expert Power, 331 Generic Approaches to Leadership 331 Leadership Traits 331 Leadership Behaviors 332 Michigan Studies, 332 Ohio State Studies, 332 Managerial Grid, 333 Situational Approaches to Leadership 334 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xvi Contents Leadership Tips for Tough Times 335 LPC Theory 336 Favorableness of the Situation, 337 Favorableness and Leader Style, 337 Flexibility of Leader Style, 338 Path-Goal Theory 338 Leader Behavior, 339 Situational Factors, 339 Vroom’s Decision Tree Approach 340 Basic Premises, 340 Decision-Making Styles, 342 Evaluation and Implications, 343 The LMX Approach 343 Related Approaches to Leadership 344 Substitutes for Leadership 344 Charismatic Leadership 344 Transformational Leadership 345 Emerging Approaches to Leadership 346 Strategic Leadership 346 Cross-Cultural Leadership 346 Diversity Still Lagging in the Boardroom 347 Ethical Leadership 348 Political Behavior in Organizations 348 Common Political Behaviors 349 Impression Management 349 Managing Political Behavior 350 Summary of Learning Outcomes and Key Points 351 Discussion Questions 352 Building Effective Diagnostic Skills 352 Building Effective Interpersonal Skills 353 Skills Self-Assessment Instrument 354 Experiential Exercise 355 Management at Work 356 You Make the Call: When to Stand on Your Head and Other Tips from the Top 357 Endnotes 358 CHAPTER 12 Communication in Organizations............................................ 361 Communication and the Manager’s Job 364 A Definition of Communication 364 Characteristics of Useful Information 365 Accurate, 365 Timely, 365 Complete, 365 Relevant, 366 The Communication Process 366 Forms of Communication in Organizations 367 Interpersonal Communication 367 Oral Communication, 367 Written Communication, 367 Choosing the Right Form, 368 Communication in Networks and Work Teams 368 Organizational Communication 369 Vertical Communication, 369 Horizontal Communication, 370 Digital Communication 371 Information Systems, 371 The Brutally-Honest-Opinion Business 372 Personal Digital Technology, 374 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents xvii Informal Communication in Organizations 375 The Grapevine 375 Management by Wandering Around 377 Nonverbal Communication 377 Say It with a Smile 378 Managing Organizational Communication 379 Barriers to Communication 379 Individual Barriers, 379 Organizational Barriers, 380 Improving Communication Effectiveness 381 Individual Skills, 382 Organizational Skills, 383 Summary of Learning Outcomes and Key Points 383 Discussion Questions 384 Building Effective Technical Skills 385 Building Effective Interpersonal Skills 385 Skills Self-Assessment Instrument 386 Experiential Exercise 387 Management at Work 387 You Make the Call: “Que Pasa in the Ad Agency?” 389 Endnotes 389 CHAPTER 13 Managing Work Groups and Teams.......................................... 391 Groups and Teams in Organizations 394 Types of Groups and Teams 394 Functional Groups, 394 Informal or Interest Groups, 394 Task Groups, 395 Using Customer-Created Groups for Competitive Advantage 396 Why People Join Groups and Teams 398 Interpersonal Attraction, 399 Group Activities, 399 Group Goals, 399 Need Satisfaction, 399 Instrumental Benefits, 400 Stages of Group and Team Development 400 Characteristics of Groups and Teams 402 Role Structures 402 Role Ambiguity, 402 Role Conflict, 403 Role Overload, 403 Measuring Carbon Footprints 404 Behavioral Norms 405 Norm Generalization, 406 Norm Variation, 406 Norm Conformity, 406 Cohesiveness 407 Factors That Increase Cohesiveness, 407 Factors That Reduce Cohesiveness, 408 Consequences of Cohesiveness, 408 Formal and Informal Leadership 409 Interpersonal and Intergroup Conflict 409 The Nature of Conflict 409 Causes of Conflict 410 Interpersonal Conflict, 410 Intergroup Conflict, 411 Conflict Between Organization and Environment, 412 Managing Conflict in Organizations 412 Stimulating Conflict 413 Controlling Conflict 413 Resolving and Eliminating Conflict 414 Negotiation 414 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xviii Contents Summary of Learning Outcomes and Key Points 416 Discussion Questions 417 Building Effective Conceptual Skills 417 Building Effective Communication Skills 418 Skills Self-Assessment Instrument 418 Experiential Exercise 419 Management at Work 419 You Make the Call: Managing by Clowning Around 421 Endnotes 421 PART 5 Controlling CHAPTER 14 Basic Elements of Control................................................... 424 The Nature of Control 426 The Purpose of Control 427 Adapting to Environmental Change, 427 Limiting the Accumulation of Error, 427 Coping with Organizational Complexity, 428 Minimizing Costs, 428 Types of Control 428 Engineering Time 429 Areas of Control, 430 Levels of Control, 430 Responsibilities for Control, 431 Steps in the Control Process 432 Establishing Standards, 432 Measuring Performance, 433 Comparing Performance Against Standards, 433 Considering Corrective Action, 434 Operations Control 434 Preliminary Control 434 Screening Control 435 Postaction Control 436 Financial Control 436 Budgetary Control 436 Types of Budgets, 437 Developing Budgets, 438 Strengths and Weaknesses of Budgeting, 439 Other Tools for Financial Control 440 Financial Statements, 440 Ratio Analysis, 440 Financial Audits, 440 Structural Control 441 Bureaucratic Control 442 Decentralized Control 443 Strategic Control 443 Managing Control in Organizations 444 Characteristics of Effective Control 444 Integration with Planning, 444 Flexibility, 444 Balancing Control with Fun 445 Accuracy, 445 Timeliness, 446 Objectivity, 446 Resistance to Control 446 Overcontrol, 446 Inappropriate Focus, 447 Rewards for Inefficiency, 447 Too Much Accountability, 447 Overcoming Resistance to Control 447 Encourage Employee Participation, 447 Develop Verification Procedures, 448 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Contents xix Summary of Learning Outcomes and Key Points 448 Discussion Questions 449 Building Effective Time Management Skills 449 Building Effective Technical Skills 450 Skills Self-Assessment Instrument 451 Experiential Exercise 451 Management at Work 453 You Make the Call: Shifting Gears in the Auto Industry 454 Endnotes 455 CHAPTER 15 Managing Operations, Quality, and Productivity.............................. 456 The Nature of Operations Management 459 The Importance of Operations 459 Manufacturing and Production Operations 460 Service Operations 460 The Role of Operations in Organizational Strategy 461 Designing Operations Systems 461 Determining the Product–Service Mix 462 Capacity Decisions 462 Facilities Decisions 462 Location, 462 Layout, 463 How to Get2 a Human 464 Organizational Technologies 465 Manufacturing Technology 466 Automation, 466 Computer-Assisted Manufacturing, 467 Robotics, 468 Service Technology 468 Implementing Operations Systems Through Supply Chain Management 469 Operations Management as Control 469 Combining Technology and Artistry 470 Purchasing Management 471 Inventory Management 472 Managing Total Quality 473 The Meaning of Quality 473 The Importance of Quality 474 Competition, 474 Productivity, 474 Costs, 475 Total Quality Management 475 Strategic Commitment, 475 Employee Involvement, 476 Technology, 476 Materials, 476 Methods, 476 TQM Tools and Techniques 476 Value-Added Analysis, 476 Benchmarking, 476 Outsourcing, 477 Reducing Cycle Time, 477 ISO 9000:2000 and ISO 14000, 478 Statistical Quality Control, 478 Six Sigma, 478 Managing Productivity 478 The Meaning of Productivity 479 Levels of Productivity, 479 Forms of Productivity, 479 The Importance of Productivity 479 Productivity Trends 480 Improving Productivity 481 Improving Operations, 481 Increasing Employee Involvement, 482 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xx Contents Summary of Learning Outcomes and Key Points 482 Discussion Questions 483 Building Effective Communication Skills 484 Building Effective Diagnostic Skills 484 Skills Self-Assessment Instrument 485 Experiential Exercise 485 Management at Work 486 You Make the Call: Orchestrating Outcomes 488 Endnotes 488 Appendix: Interpretations of Skills Self-Assessment Instruments.................. 490 Name Index................................................................. 502 Organization and Product Index.............................................. 505 Subject Index................................................................ 510 www.MyEbookNiche.eCrater.com Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Preface Literally hundreds of books have been written for introductory management courses. As the body of material comprising the theory, research, and practice of management has grown and expanded, textbook authors have continued to mirror this expansion of mate- rial in their books. Writers have understood the importance of adding new material about traditional topics, such as planning and organizing, while simultaneously adding coverage of emerging newer topics, such as sustainability, ethics, and social media. As a by-product of this trend, our general survey textbooks have grown longer and longer, making it increasingly difficult to cover all the material in one course. Another trend in management education is a focus on teaching in a broader context— that is, introductory management courses are increasingly being taught with less emphasis on theory alone and more emphasis on application of concepts. Teaching students how to apply management concepts successfully often involves focusing more on skills development and the human side of the organization. This trend requires that textbooks cover theoretical concepts within a flexible framework that enables instructors to make use of interactive tools such as case studies, exercises, and projects. It also dictates that a text be as relevant to students as possible. Hence, while this book draws examples and cases from older large firms like Ford, IBM, and Nissan, it also makes extensive use of newer firms such as Google, Netflix, Facebook, Star-