Contemporary Management (12th Edition) PDF

 Contemporary Management  Contemporary Management Twelfth Edition Gareth R. Jones Jennifer M. George Rice University ...

 Contemporary Management  Contemporary Management Twelfth Edition Gareth R. Jones Jennifer M. George Rice University  Final PDF to printer CONTEMPORARY MANAGEMENT Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121. Copyright ©2022 by McGraw Hill LLC. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw Hill LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 ISBN 978-1-264-97243-2 MHID 1-264-97243-1 Cover Image: Hilch/Shutterstock; McGraw Hill All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw Hill LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered jon72431_fm_ise.indd iv 11/23/20 02:52 PM BRIEF CONTENTS Part One Part Four Management Organizing and Controlling Chapter 1 Chapter 10 Managers and Managing 2 Managing Organizational Structure and Culture 274 Chapter 2 The Evolution of Management Chapter 11 Thought 30 Organizational Control and Change 310 Chapter 3 Chapter 12 Values, Attitudes, Emotions, and Human Resource Management 340 Culture: The Manager as a Person 58 Part Five Part Two Leading Individuals and Groups The Environment of Management Chapter 13 Chapter 4 Motivation and Performance 374 Ethics and Social Responsibility 90 Chapter 14 Chapter 5 Leadership 406 Managing Diverse Employees in a Multicultural Environment 122 Chapter 15 Effective Groups and Teams 436 Chapter 6 Managing in the Global Environment 152 Part Six Managing Critical Organizational Part Three Processes Decision Making, Planning, Chapter 16 and Strategy Promoting Effective Communication 468 Chapter 7 Chapter 17 Decision Making, Learning, Creativity, Managing Conflict, Politics, and Entrepreneurship 182 and Negotiation 496 Chapter 8 Chapter 18 The Manager as a Planner Using Advanced Information and Strategist 212 Technology to Increase Performance 522 Chapter 9 Value Chain Management: NAME INDEX NI-1 Functional Strategies for ORGANIZATION INDEX OI-1 Competitive Advantage 244 SUBJECT GLINDEX SGI-1 v AUTHORS Gareth Jones currently offers pro bono advice on Jennifer George is the Mary Gibbs Jones solving management problems to nonprofit organizations Professor of Management and Professor of Psychology in the in Houston, Texas. He received his BA in Economics/ Jesse H. Jones Graduate School of Business at Rice University. Psychology and his PhD in Management from the University She received her BA in Psychology/Sociology from Wesleyan of Lancaster, UK. He was formerly Professor of Management University, her MBA in Finance from New York University, and in the Graduate School of Business at Texas A&M University her PhD in Management and Organizational Behavior from and earlier held teaching and research appointments at New York University. Prior to joining the faculty at Rice Uni- Michigan State University, the University of Illinois at ­Urbana- versity, she was a professor in the Department of Manage- Champaign, and the University of Warwick, UK. ment at Texas A&M University. He continues to pursue his research interests in stra- Professor George specializes in organizational behavior tegic management and organizational theory and his well- and is well known for her research on mood and emotion in known research that applies transaction cost analysis to the workplace, their determinants, and their effects on vari- explain many forms of strategic and organizational behavior. ous individual and group-level work outcomes. She is the He also studies the complex and changing relationships author of many articles in leading peer-reviewed journals between competitive advantage and information technology such as the Academy of Management Journal, the Academy in the 2010s. of Management Review, the Journal of Applied Psychology, He has published many articles in leading journals of Organizational Behavior and Human Decision Processes, the field, and his research has appeared in the Academy of Journal of Personality and Social Psychology, Organization Management Review, the Journal of International ­Business Science, and Psychological Bulletin. One of her papers won Studies, and Human Relations. An article about the role of the Academy of Management’s Organizational Behavior information technology in many aspects of organizational Division Outstanding Competitive Paper Award, and another functioning was published in the Journal of Management. paper won the Human Relations Best Paper Award. She is, One of his articles won the Academy of Management or has been, on the editorial review boards of the Journal ­Journal’s Best Paper Award, and he is one of the most of Applied Psychology, Academy of Management Journal, cited authors in the Academy of Management Review. He Academy of Management Review, Administrative Science is, or has served, on the editorial boards of the Academy Quarterly, Journal of Management, Organizational Behavior of ­Management Review, the Journal of Management, and and Human Decision Processes, Organization Science, Inter- ­Management Inquiry. national Journal of Selection and Assessment, and Journal Gareth Jones has used his academic knowledge to craft of Managerial Issues; was a consulting editor for the Jour- leading textbooks in management and three other major nal of Organizational Behavior; was a member of the SlOP areas in the management discipline: organizational behavior, Organizational Frontiers Series editorial board; and was an organizational theory, and strategic management. His books associate editor of the Journal of Applied Psychology. She is are widely recognized for their innovative, contemporary a fellow in the Academy of Management, the American Psy- content and for the clarity with which they communicate chological Association, the American Psychological Society, complex, real-world issues to students. and the Society for Industrial and Organizational Psychology and a member of the Society for Organizational Behavior. She also has coauthored a textbook titled Understanding and Managing Organizational Behavior. vi PREFACE In this twelfth edition of Contemporary Management, we continue to focus on providing the most up-to-date account Major Content Changes of the changes taking place in the world of management Encouraged by the number of instructors and students who and management practices while maintaining our emphasis use each new edition of our book, and based on the reac- on keeping our text relevant and interesting to students. Our tions and suggestions of both users and reviewers, we have increased focus on the challenges and opportunities facing revised and updated our book in several ways. First, just businesses large and small and integrated timely examples as we have included new research concepts as appropriate, bring management issues to life for students. so too have we been careful to eliminate outdated or mar- The number and complexity of strategic, organizational, ginal management concepts. As usual, our goal has been and human capital challenges facing managers continue to streamline our presentation and keep the focus on the to rise. In most companies, managers at all levels address changes taking place that have the most impact on man- these challenges by implementing new and improved man- agers and organizations. In today’s world of instant sound agement techniques and practices. Today, relatively small bites, videos, text messaging, and tweets, providing the best differences in performance between companies—such as content is much more important than providing excessive the speed at which they bring new products or services to content—­especially when some of our students are bur- market or the ways they motivate employees to reduce costs dened by time pressures stemming from the need to work or improve performance—can combine to give a company a long hours at paying jobs and meeting personal commit- significant competitive advantage. Managers and compan- ments and obligations. ies that utilize proven management techniques and prac- Second, we have added new management content and tices in their decision making and actions increase their have reinforced its importance by using many small and effectiveness over time. large company examples that are described in the chapter The issues facing managers continue to intensify as opening cases titled “A Manager’s Challenge”; in the many changes in the global environment—such as tightening of boxed examples featuring managers and employees in com- the U.S. labor market, rising wages in China and other panies both large and small in each chapter; and in the countries, and the social and economic fallout from the “Case in the News” closing cases. 2020 global coronavirus pandemic—affect organizations large and small. In addition, increasing globalization means Chapter 1 that managers must be quick to respond to major differ- ences in the legal rules and regulations and ethical values New “A Manager’s Challenge” on how SurveyMon- key’s CEO brought a fresh vision to the company to and norms that prevail in countries around the globe. stabilize its workforce and lead the organization toward In addition, the ongoing advances in technology con- renewed growth. tinue to transform how managers make decisions across all levels of a company’s hierarchy and across its functions Updated statistics on managerial wages and projected and global divisions. This edition addresses these ongoing growth rate in managerial job openings over the next challenges as technology continues to change at breakneck five years. speed, especially in the areas of artificial intelligence, data analytics, and cybersecurity. New “Manager as a Person” on the CEO of Match Group and how she uses her experience and skills to Other major challenges we continue to address in this carry out all four categories of managerial tasks. edition include the impact of the steadily increasing diver- sity in the workforce and how this increasing diversity Updated statistics on outsourcing tasks to companies makes it imperative for managers to understand how and in other countries. why people differ so they can effectively manage and reap the performance benefits of a diverse workforce. Similarly, Updated discussion and statistics on the impact of remote workers to managers and their organizations. across all functions and levels, managers and employees must continually seek ways to work smarter and increase New “Ethics in Action” on giving employees a nudge performance. With these issues in mind, we revised this to increase ethical behavior in the workplace. edition of Contemporary Management to address these chal- New “Case in the News” about GE spinning off its rail- lenges to managers and their organizations. road business. vii Chapter 2 Chapter 5 New “Management Insight” on how E Source, a Colo- Updated statistics on age and men’s and women’s rado utilities consulting company, helps its employees participation rates in the U.S. workforce and median set both personal and business goals to help increase weekly earnings. efficiency. New discussion on lack of women CEOs in S&P 500 New “Manager as a Person” about how the general companies. manager of the Washington, DC, area Metro system demonstrates flexibility in his managerial decisions. Updated statistics on the increasing diversity of the U.S. workforce. New “Case in the News” about food-service operator New “Focus on Diversity” on the increasing impact of Red Robin and its push to contain labor costs. Hispanics on the U.S. workforce. Chapter 3 Updated discussion about the companies recognized for employing people with disabilities. New “A Manager’s Challenge” on how the first female Updated statistics on the U.S. poverty rate. CEO of John Hancock insurance company shapes the values of her organization. Updated discussion on the U.S. employers recognized as the best places to work for LGBTQ equality. New “Manager as a Person” on the cofounder of Hun- New “Manager as a Person” about how the CEO of tington Learning Centers and how her personality a medical tech company promotes diversity in his traits have contributed to the company’s success. organization. Updated discussion on job satisfaction rates among New “Ethics in Action” on whether older tech workers U.S. workers. are victims of stereotypes. New “Management Insight” on how organizational Updated discussion and statistics on sexual culture plays a significant role in shaping employees’ harassment. behavior. New discussion on recent corporate scandals and how New discussion about a pilot program by four tech companies to develop benchmarks that companies a dysfunctional culture can be damaging to an organiz- have taken appropriate steps to address workplace ation and its members. harassment of any sort. New “Case in the News” on Google’s ongoing chal- New “Case in the News” about diversity efforts at lenge to maintain a strong company culture. Goldman Sachs. Chapter 4 Chapter 6 New “A Manager’s Challenge” on the president of the UPS Foundation and how he aligns his organization’s New “A Manager’s Challenge” about Walmart’s work with UPS’s overall corporate vision by contribut- global expansion into India by investing in Flipkart, ing to local communities. the Indian e-commerce giant that competes with Amazon. New “Management Insight” about how to embed eth- ics in an organization’s culture. New “Management Insight” about the film industry in a developing economy in Africa. Updated discussion on the compensation packages for U.S. CEOs. Updated discussion about the UK’s departure from the European Union. New “Manager as a Person” on how the CEO at a pharmaceutical company puts his people first. Updated discussion on the new trade agreement that will replace NAFTA. New discussion about how corporate corruption can still occur in countries with high ethical marks. New “Managing Globally” on the impact of tariffs on auto companies’ supply chains. New “Case in the News” about how Chevron tries to stay on the high road in Venezuela amid political and New “Case in the News” about China’s Huawei economic unrest. Technologies. viii Chapter 7 New “Managing Globally” on how IKEA is redesign- ing new stores on a smaller scale now that many con- New “Management Insight” on sustainability efforts at sumers shop online. UPS, DuPont, and the Coca-Cola Company. Updated research on why mergers fail when company New discussion about Home Depot’s functional structure. cultures clash. New “Ethics in Action” about Pfizer changing its organizational structure to help improve business and New “Ethics in Action” on turning plastic recycling into marketing efforts. a way that enables people to participate in their economy. New “Case in the News” on the U.S. Marines logistics Updated discussion on the hierarchy of authority at unit and how it is teaching military personnel in the McDonald’s Corporation. field to use computer-aided technologies to think cre- New “Manager as a Person” on NASA’s administra- atively in their everyday jobs. tor and his efforts to create a winning culture at the space agency. Chapter 8 New “Case in the News” about restricting and rebrand- Updated discussion throughout the chapter about Gen- ing efforts at Ogilvy’s U.S. advertising operations. eral Mills and its planning strategies at various levels of the organization. Chapter 11 New “Manager as a Person” on how Starbucks’ chief New “Management Insight” on the skills employers are operating officer has implemented plans across the looking for in recent college graduates. company for sustained growth. New section on the Balanced Scorecard and its increas- New discussion about how Toys R Us has reinvented itself ing use by organizations to evaluate various measures on a smaller scale with the help of a software retailer. of a company’s performance. New “Management Insight” on how Canada Goose, Updated discussion on Disney and its strategic reorgan- maker of high-end outerwear, uses product differentia- ization, including a new CEO replacing Bob Iger. tion to its advantage. New “Ethics in Action” on Volkswagen’s continuing New “Case in the News” about how Best Buy tweaks efforts to implement top-down changes to regain con- its strategies to stay relevant and compete in an ever- sumers’ confidence after an emissions scandal. changing environment. New “Case in the News” on how Stitch Fix controls Chapter 9 inventory and the customer experience. New “A Manager’s Challenge” about Mattel’s CEO Chapter 12 and his redesign of company processes to increase efficiency. New “A Manager’s Challenge” on Cisco Systems and its strategies to attract and retain top talent. New “Ethics in Action” about whether efficiency can hurt workers and their organizations. New discussion about the importance of companies recognizing that the HR function is a critical compon- New discussion about General Motors and its flexible ent of their strategic agenda. manufacturing plan that has collaborative robots work- ing side by side with humans. New research on job applicants fabricating or exagger- ating information on their résumés. New “Manager as a Person” on Amazon’s innovator in chief: Jeff Bezos. New discussion on Dollar General’s successful train- ing program for its employees. New “Case in the News” about Brooks Brothers’ rede- signing itself and its processes. New research on the effectiveness of formal mentoring programs, especially for minorities. Chapter 10 Updated statistics on union members in the United States. New “A Manager’s Challenge” on how Alaska Airline’s organizational structure is designed with customers New “Case in the News” on Southwest Airlines’ stra- in mind. tegic approach to HR. ix Chapter 13 Chapter 16 New “A Manager’s Challenge” on how Applied Tech- New “Ethics in Action” on how the use of questions nical Services sets realistic targets for success. can foster effective communication. New “Managing Globally” on how individual needs Updated discussion on the increasing importance of among workers vary from country to country. technology and communication, including web-based collaboration systems and other online communica- New “Case in the News” on DTE Energy and company tions, particularly as the COVID-19 pandemic hampers efforts to re-energize its workforce with a shared sense of purpose to cut costs and avoid layoffs. regular business operations. New “Case in the News” on how Netflix aims to keep communication honest throughout the organization. Chapter 14 New “A Manager’s Challenge” on how Microsoft CEO Chapter 17 Satya Nadella leads the company into new business. New “Manager as a Person” on a servant leader at New “Ethics in Action” on a method of giving voice to underlying values—not individuals’ personalities— Covenant Health in eastern Tennessee. that underlie each perspective on a particular business Updated discussion of coercive power and how some issue. managers use it to punish others. New “Focus on Diversity” on how managers need to New discussion about how Costco uses consideration recognize and respect ideas put forth by employees of as part of its code of ethics. different ages. New “Ethics in Action” on Salesforce’s chief ethical New “Managing Globally” on the importance of man- and humane use officer. agers empowering local knowledge when it comes to New discussion throughout the chapter about the working with governments and aid organizations. various ways Netflix co-founder Reed Hastings demon- strates leadership. New “Case in the News” on Boeing and the internal conflicts that contributed to problems with the 737 New “Case in the News” on how the CEO of Levi MAX. Strauss uses effective leadership strategies to help the company and its employees succeed. Chapter 18 Chapter 15 Updated research and discussion about the importance of effective cybersecurity measures. New “Manager as a Person” on how Intertape Polymer New “Ethics in Action” on a national grocery chain’s Group’s director of operations supports the use of self- use of consumer data as a key part of its growth directed teams within the organization. strategy. New “Management Insight” on helping a team develop New “Managing Globally” on a Chinese financial ser- by identifying critical behaviors. vices company that runs on artificial intelligence. New “Case in the News” on how Adient, the world’s New “Case in the News” on Royal Dutch Shell and its largest supplier of automotive seating, uses high-­ continuing investment in artificial intelligence projects performance teams to maintain its competitive edge. to increase the company’s overall efficiency. x Flexible Organization macro-oriented professor can follow Chapters 1 and 2 with Chapters 6 through 11, jump to 16 through 18, and then use Another factor of interest to instructors is how we have the micro chapters, 3 through 5 and 12 through 15. designed the grouping of chapters to allow instructors to Our sequencing of parts and chapters gives instructors teach the chapter material in the order that best suits their considerable freedom to design the course that best suits needs. For example, the more micro-oriented instructor their needs. Instructors are not tied to the planning, organ- can follow Chapters 1 through 5 with Chapters 12 through izing, leading, and controlling framework, even though our 16 and then use the more macro chapters. The more presentation remains consistent with this approach. xi Instructors: Student Success Starts with You Tools to enhance your unique voice Want to build your own course? No problem. Prefer to use our turnkey, prebuilt course? Easy. Want to make changes throughout the 65% Less Time semester? Sure. And you’ll save time with Connect’s auto-grading too. Grading Study made personal Incorporate adaptive study resources like SmartBook® 2.0 into your course and help your students be better prepared in less time. Learn more about the powerful personalized learning experience available in SmartBook 2.0 at www.mheducation.com/highered/connect/smartbook Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images Affordable solutions, Solutions for added value your challenges Make technology work for you with A product isn’t a solution. Real LMS integration for single sign-on access, solutions are affordable, reliable, mobile access to the digital textbook, and come with training and and reports to quickly show you how ongoing support when you need each of your students is doing. And with it and how you want it. Visit www. our Inclusive Access program you can supportateverystep.com for videos provide all these tools at a discount to and resources both you and your your students. Ask your McGraw Hill students can use throughout the representative for more information. semester. Padlock: Jobalou/Getty Images Checkmark: Jobalou/Getty Images Students: Get Learning that Fits You Effective tools for efficient studying Connect is designed to make you more productive with simple, flexible, intuitive tools that maximize your study time and meet your individual learning needs. Get learning that works for you with Connect. Study anytime, anywhere “I really liked this Download the free ReadAnywhere app and access your app—it made it easy online eBook or SmartBook 2.0 assignments when it’s to study when you convenient, even if you’re offline. And since the app don't have your text- automatically syncs with your eBook and SmartBook 2.0 assignments in Connect, all of your work is available book in front of you.” every time you open it. Find out more at www.mheducation.com/readanywhere - Jordan Cunningham, Eastern Washington University Everything you need in one place Your Connect course has everything you need—whether reading on your digital eBook or completing assignments for class, Connect makes it easy to get your work done. Calendar: owattaphotos/Getty Images Learning for everyone McGraw Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students. Please contact your Accessibility Services Office and ask them to email [email protected], or visit www.mheducation.com/about/accessibility for more information. Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero Images/Getty Images Course Design and Delivery CREATE Instructors can so when a student completes an integrated Connect now tailor their teaching assignment, the grade for that assignment automatic- resources to match the way ally (and instantly) feeds your Blackboard grade cen- they teach! With McGraw-Hill Create, www. ter. Learn more at www.omorenow.com. mcgrawhillcreate.com, instructors can easily rearrange chapters, combine material from other content MCGRAW-HILL CAMPUS™ sources, and quickly upload and integrate their own McGraw-Hill Campus is a content, such as course syllabi or teaching notes. Find new one-stop teaching and the right content in Create by searching through thou- learning experience available to users of any learning sands of leading McGraw-Hill textbooks. Arrange the management system. This institutional service allows material to fit your teaching style. Order a Create faculty and students to enjoy single sign-on (SSO) book and receive a complimentary print review copy access to all McGraw-Hill Higher Education materi- in three to five business days or a complimentary elec- als, including the award-winning McGraw-Hill Con- tronic review copy via email within one hour. Go to nect platform, from directly within the institution’s www.mcgrawhillcreate.com today and register. website. With McGraw-Hill Campus, faculty receive instant access to teaching materials (eTextbooks, test Tegrity: Lectures 24/7 banks, PowerPoint slides, animations, learning object- Tegrity in Connect is a ives, etc.), allowing them to browse, search, and use tool that makes class time any instructor ancillary content in our vast library at available 24/7 by automatically capturing every lec- no additional cost to instructor or students. In addi- ture. With a simple one-click start-and-stop process, tion, students enjoy SSO access to a variety of free you capture all computer screens and correspond- content (quizzes, flash cards, narrated presentations, ing audio in a format that is easy to search, frame by etc.) and subscription-based products (e.g., McGraw- frame. Students can replay any part of any class with Hill Connect). With McGraw-Hill Campus enabled, easy-to-use, browser-based viewing on a PC, Mac, tab- faculty and students will never need to create another let, or other mobile device. account to access McGraw-Hill products and services. Educators know that the more students can see, Learn more at www.mhcampus.com. hear, and experience class resources, the better they learn. In fact, studies prove it. Tegrity’s unique search fea- ASSURANCE OF LEARNING READY Many educa- ture helps students efficiently find what they need, when tional institutions today focus on the notion of assur- they need it, across an entire semester of class record- ance of learning, an important element of some ings. Help turn your students’ study time into learning accreditation standards. Contemporary Management is moments immediately supported by your lecture. With designed specifically to support instructors’ assurance Tegrity, you also increase intent listening and class par- of learning initiatives with a simple yet powerful solu- ticipation by easing students’ concerns about note-taking. tion. Each test bank question for Contemporary Man- Using Tegrity in Connect will make it more likely you agement maps to a specific chapter learning objective will see students’ faces, not the tops of their heads. listed in the text. BLACKBOARD® PART- AACSB TAGGING NERSHIP McGraw-Hill McGraw-Hill Edu- Education and Blackboard cation is a proud have teamed up to simplify corporate member your life. Now you and your of AACSB International. Understanding the import- students can access Connect ance and value of AACSB accreditation, Contemporary and Create right from within your Blackboard course–all Management recognizes the curricula guidelines detailed with one single sign-on. The grade books are seamless, in the AACSB standards for business accreditation by xiv connecting selected questions in the text and the test MCGRAW-HILL CUSTOMER EXPERIENCE GROUP bank to the eight general knowledge and skill guidelines CONTACT INFORMATION At McGraw-Hill Educa- in the AACSB standards. The statements contained in tion, we understand that getting the most from new Contemporary Management are provided only as a guide technology can be challenging. That’s why our ser- for the users of this product. The AACSB leaves content vices don’t stop after you purchase our products. You coverage and assessment within the purview of individ- can email our Product Specialists 24 hours a day to ual schools, the mission of the school, and the faculty. get product training online. Or you can search our While the Contemporary Management teaching package knowledge bank of Frequently Asked Questions on makes no claim of any specific AACSB qualification or our support website. For Customer Support, call evaluation, we have within Contemporary Management 800-331-5094 or visit www.mhhe.com/support. One of labeled selected questions according to the eight general our Technical Support Analysts will be able to assist knowledge and skills areas. you in a timely fashion. xv ACKNOWLEDGMENTS Finding a way to integrate and present the rapidly grow- Gerald Baumgardner, Pennsylvania College of ing literature about contemporary management and make it Technology interesting and meaningful for students is not an easy task. Charles W. Beem, Bucks County Community College In writing and revising the various drafts of Contemporary James D. Bell, Texas State University Management, we have been fortunate to have the assistance Danielle R. Blesi, Hudson Valley Community College of several people who have contributed greatly to the book’s Susan Blumen, Montgomery College Department of final form. First, we are grateful to Michael Ablassmeir, our Business and Economics director, for his ongoing support and commitment to our Jennifer P. Bott, Ball State University project and for always finding ways to provide the resources Edwin L. Bowman, Principal, Manhattanville College, that we needed to continually improve and refine our book. Purchase, NY Second, we are grateful to Haley Burmeister, our product Charley Braun, Marshall University developer, for so ably coordinating the book’s progress; and to Debbie Clare, our marketing manager, for giving us con- Reginald Bruce, College of Business, University of cise and timely feedback and information from professors Louisville and reviewers that have allowed us to shape the book to the Murray Brunton, Central Ohio Technical College needs of its intended market. We also thank Beth Blech for Charles Buchanan, The Ohio State University executing an awe-inspiring design; Jane Mohr for coordinating Judith G. Bulin, Monroe Community College, Rochester, the production process; and Iliya Atanasov (Rice University) New York and Marcie Lensges (Xavier University) for their assistance Barry Bunn, Valencia Community College with research. We are also grateful to the many colleagues Aaron Butler, Warner Pacific College ADP and reviewers who gave us useful and detailed feedback and Gerald Calvasina, Southern Utah University perceptive comments and valuable suggestions for improv- Bruce H. Charnov, Hofstra University ing the manuscript. Alexander Chen, University of Central Arkansas Producing any competitive work is a challenge. Pro- Jay Christensen-Szalanski, University of Iowa ducing a truly market-driven textbook requires tremen- Jason W. Coleman, Wesley College dous effort beyond simply obtaining reviews of a draft Joy Colarusso, Daytona State College manuscript. Our goal was simple with the development of Contemporary Management: to be the most customer- Renee Y. Cooper, Fashion Institute of Technology driven principles of management text and supplement Robert Cote, Lindenwood University package ever published! With the goal of exceeding the C. Brad Cox, Midlands Technical College expectations of both faculty and students, we executed Marian Cox Crawford, University of Arkansas–Little one of the most aggressive product development plans Rock ever undertaken in textbook publishing. Hundreds of fac- Susie S. Cox, University of Arkansas–Little Rock ulty have taken part in developmental activities ranging Cheryl Cunningham, Embry-Riddle Aeronautical from regional focus groups to manuscript and supple- University–Daytona Beach ment reviews and surveys. Consequently, we’re confident Teresa A. Daniel, Marshall University in assuring you and your students, our customers, that Thomas W. Deckelman, Owens Community College every aspect of our text and support package reflects your Richard S. DeFrank, University of Houston advice and needs. As you review it, we’re confident that Fred J. Dorn, University of Mississippi your reaction will be, “They listened!” D. Harold Doty, University of Southern Mississippi We extend our special thanks to the faculty who gave Max E. Douglas, Indiana State University us detailed chapter-by-chapter feedback during the develop- ment of this product: Sandra Edwards, Northeastern State University Stewart W. Edwards, Northern VA Community Jerry Alley, Aspen University College–Annandale M. Ruhul Amin, Bloomsburg University of Pennsylvania William Eichenauer, Northwest State Community Lindy Archambeau, University of Florida College Amy S. Banta, Ohio University Scott Elston, Iowa State University Kelly Barbour-Conerty, Parkland College Richard Estrella, California Polytechnic University xvi Valerie Evans, Kansas State University Bahaudin G. Mujtaba, Nova Southeastern University Bagher Fardanesh, Piaget Consulting Jane Murtaugh, College of DuPage Carla C. Flores, Ball State University Renee Nelms King, Eastern Illinois University Andrea Foster, John Tyler Community College Nanci D. Newstrom, Eastern Illinois University Dane L. Galden, Columbus State Community College Catherine Nowicki, International Business College Justin Gandy, Dallas Baptist University John Overby, The University of Tennessee at Martin Shahbaz Gill, University of Illinois–Urbana Champaign Karen Overton, Houston Community College Jim Glasgow, Instructor, Villanova School of Business Eren Ozgen, Troy University, Dothan Campus Monica Godsey, University of Nebraska Fernando A. Pargas, James Madison University Selina Griswold, The University of Toledo Marc Pendel, Miller College of Business, Ball State Kathy Hastings, Greenville Technical College University Karen H. Hawkins, Miami Dade College Susan A. Peterson, Scottsdale Community College Travis Lee Hayes, Chattanooga State Technical Ronald Purser, San Francisco State University Community College Gary Renz, Webster University Samuel Hazen, Tarleton State University Bruce Wayne Richardson, Northeastern State Kim Hester, Arkansas State University University–Broken Arrow Campus Perry Hidalgo, Gwinnett Technical College L. Jeff Seaton, University of Tennessee–Martin Anne Kelly Hoel, University of Wisconsin–Stout Gregory J. Schultz, Carroll University Robert C. Hoell, Georgia Southern University Marc Siegall, California State University–Chico Jenni Hunt, Southern Illinois University–Edwardsville Randi L. Sims, Nova Southeastern University Irene Joanette-Gallio, Western Nevada College Michaeline Skiba, Monmouth University–Leon Hess Paul D. Johnson, University of Mississippi Business School Carol Larson Jones, Cal Poly Pomona, California Frederick J. Slack, Indiana University of Pennsylvania Coy A. Jones, The University of Memphis M. James Smas, Kent State University Gwendolyn Jones, University of Akron Gerald Smith, University of Northern Iowa Kathleen Jones, University of North Dakota Marjorie Smith, Mountain State University Rusty Juban, Southeastern Louisiana University Susan D. Steiner, The University of Tampa Jordan J. Kaplan, Long Island University School of Steven A. Stewart, Georgia Southern University Business Warren Stone, University of Arkansas at Little Rock Joanne E. Kapp, Siena College Cynthia L. Sutton, Metropolitan State College of Renee N. King, Eastern Illinois University Denver Deanna R. Knight, Daytona State College Laurie Taylor-Hamm, California State University, Mike Knudstrup, Florida Southern College Fresno Susan Kowalewski, D’Youville College Sabine Turnley, Kansas State University Cynthia J. Lanphear, University of the Ozarks Isaiah O. Ugboro, North Carolina A&T State University Marcie Lensges, Xavier University Velvet Weems, Landingham, Kent State University John E. Lewis, Midlands Technical College John Weiss, Daytona State College Jim Long, Southwestern Oklahoma State University William K. Wesley, Golden Gate University Joyce Lopez, Missouri State University W. Alexander Williams Jr., Texas A&M Margaret Lucero, Texas A&M–Corpus Christi University–Commerce Nicholas Mathys, DePaul University Elizabeth Wilson, Georgia Southwestern State Daniel W. McAllister, University of Nevada–Las Vegas University Christy McLendon Corey, University of New Orleans Jan Zantinga, University of Georgia Chrisann Merriman, University of Mary Hardin–Baylor Finally, we are grateful to two incredibly wonderful chil- Douglas L. Micklich, Illinois State University dren, Nicholas and Julia, for being all that they are and for Sandra Jeanquart Miles, Murray State University the joy they bring to all who know them. Carol T. Miller, Community College of Denver Gareth R. Jones Don C. Mosley Jr., University of South Alabama Clive Muir, Stetson University Jennifer M. George Troy V. Mumford, Colorado State University Rice University xvii CONTENTS Part One | Management Chapter 1 Be the Manager 26 | Case in the News: GE Drives Away from Transportation 27 Managers and Notes 28 Managing 2 A MANAGER’S CHALLENGE Chapter 2 CEO Fosters Growth at SurveyMonkey 3 The Evolution of ­Management Thought 30 Overview 4 What Is Management? 4 Achieving High Performance: A Manager’s Goal 4 | A MANAGER’S CHALLENGE Why Study Management? 6 Customer Experience Is the Focus at Comcast 31 Essential Managerial Tasks 6 Planning 6 | Organizing 7 | Leading 7 | Overview 32 Controlling 8 | MANAGER AS A PERSON: What Makes Mandy Ginsberg a Good Fit for Match 8 | Scientific Management Theory 32 Performing Managerial Tasks: Mintzberg’s Typology 9 | Job Specialization and the Division of Labor 33 | F. W. Taylor and Scientific Management 34 | The Gilbreths 35 Levels and Skills of Managers 10 Levels of Management 11 | Types of Managerial Administrative Management Theory 36 Skills 13 | MANAGEMENT INSIGHT: Skills Required for a The Theory of Bureaucracy 36 | Fayol’s Principles of City Manager 14 Management 38 | MANAGEMENT INSIGHT: E Source’s Approach to Employee Satisfaction and Productivity 41 Recent Changes in Management Practices 16 Restructuring and Outsourcing 16 | Empowerment and Behavioral Management Theory 42 Self-Managed Teams 17 The Work of Mary Parker Follett 42 | The Hawthorne Studies and Human Relations 42 | Theory X and Challenges for Management in a Global Theory Y 44 Environment 18 Management Science Theory 45 Building Competitive Advantage 18 | Maintaining Ethical and Socially Responsible Standards 20 | Organizational Environment Theory 46 ETHICS IN ACTION: Giving Employees a Nudge 21 | The Open-Systems View 46 | MANAGER AS A PERSON: How Managing a Diverse Workforce 22 | Utilizing New Paul Wiedefeld Runs the Washington Metro 47 | Technologies 23 | Practicing Global Crisis Contingency Theory 48 | Dynamic Capabilities 50 | Management 23 Summary and Review 50 Summary and Review 24 Management in Action 52 | Building Management Skills 52 | Management in Action 25 | Building Management Skills 25 | Managing Ethically 53 | Small Group Breakout Exercise 53 | Managing Ethically 26 | Small Group Breakout Exercise 26 | Be the Manager 54 | Case in the News: How Red Robin Is Trying to Fly High 54 Notes 55 xviii  Contents xix Chapter 3 Values, Attitudes, and Moods and Emotions 66 Values: Terminal and Instrumental 66 | ETHICS IN ACTION: Values, Attitudes, Emotions, Promoting Ethical Behavior in the Hotel Industry 67 | and Culture: The Manager Attitudes 67 | Moods and Emotions 70 as a Person 58 Emotional Intelligence 71 MANAGING GLOBALLY: Emotional Intelligence Varies by Culture 72 A MANAGER’S CHALLENGE Organizational Culture 73 Managers and Organizational Culture 74 | The Role of John Hancock CEO Ensures a Bright Future 59 Values and Norms in Organizational Culture 75 | MANAGEMENT INSIGHT: Organizational Culture: Make Sure Overview 60 It’s a Good One 77 | Culture and Managerial Action 80 Summary and Review 81 Enduring Characteristics: Personality Traits 60 Management in Action 83 | Building Management Skills 83 | The Big Five Personality Traits 60 | MANAGER AS A PERSON: Managing Ethically 83 | Small Group Breakout Exercise 84 | Making the Grade as a Business Founder 63 | Other Be the Manager 84 | Case in the News: Google Searches for Personality Traits That Affect Managerial Behavior 64 | Ways to Keep Its Culture Strong 84 Additional Personality Assessments 65 Notes 85 Part Two | The Environment of Management Chapter 4 Responsible? 114 | The Role of Organizational Culture 114 Ethics and Social Summary and Review 115 Responsibility 90 Management in Action 116 | Building Management Skills 116 | Managing Ethically 116 | Small Group Breakout Exercise 117 | Be the Manager 117 | Case in the News: Chevron Tries to Stay on the High Road in Venezuela 117 A MANAGER’S CHALLENGE Notes 119 UPS Foundation’s Martinez Takes His Role Seriously 91 Overview 92 The Nature of Ethics 92 Chapter 5 Ethical Dilemmas 92 | MANAGEMENT INSIGHT: Managing Diverse Embedding Ethics in Organizational Culture 93 | ­Employees in a Ethics and the Law 94 | Changes in Ethics over Multicultural Time 94 Environment 122 Stakeholders and Ethics 95 Shareholders 96 | Managers 96 | Ethics and Nonprofit Organizations 98 | Employees 99 | Suppliers and Distributors 99 | Customers 99 | Community, A MANAGER’S CHALLENGE Society, and Nation 99 | MANAGER AS A PERSON: CEO Puts Diversity and Inclusion Goals on Target at Intel 123 People First at Ferring USA 100 | Rules for Ethical Decision Making 101 | Why Should Managers Behave Ethically? 104 Overview 124 Ethics and Social Responsibility 106 The Increasing Diversity of the Workforce and Societal Ethics 106 | Occupational Ethics 107 | the Environment 124 Individual Ethics 107 | Organizational Ethics 108 | Age 125 | Gender 126 | Race and Ethnicity 127 | ETHICS IN ACTION: Chatbot Helps Employees with Ethics 110 FOCUS ON DIVERSITY:Impact of Hispanics on the U.S. Approaches to Social Responsibility 111 Workforce 127 | Religion 128 | Capabilities/ Four Different Approaches 112 | MANAGING GLOBALLY: Disabilities 129 | Socioeconomic Background 129 | Protecting Home-Based Workers 113 | Why Be Socially Sexual Orientation 130 | Other Kinds of Diversity 131 xx Contents Managers and the Effective Management of Diversity 131 Chapter 6 Critical Managerial Roles 131 | MANAGER AS A PERSON: CEO Managing in the Global Lobo Promotes Diversity at Stryker 132 | The Ethical Environment 152 Imperative to Manage Diversity Effectively 133 | Effectively Managing Diversity Makes Good Business Sense 134 Perception 135 Factors That Influence Managerial Perception 136 | A MANAGER’S CHALLENGE Perception as a Determinant of Unfair Treatment 137 | Walmart Takes on Amazon in India 153 ETHICS IN ACTION: Are Older Tech Workers the Victims of Stereotypes? 137 | Overt Discrimination 139 Overview 154 How to Manage Diversity Effectively 140 What Is the Global Environment? 154 Steps in Managing Diversity Effectively 140 The Task Environment 155 Sexual Harassment 143 Suppliers 155 | ETHICS IN ACTION: Levi Strauss Motivates Forms of Sexual Harassment 143 | Steps Managers Can Global Suppliers to Treat Workers Well 156 | Take to Eradicate Sexual Harassment 144 | MANAGEMENT Distributors 158 | Customers 158 | Competitors 159 INSIGHT: Providing Effective Anti-Harassment Training 144 The General Environment 161 Summary and Review 145 Economic Forces 162 | MANAGEMENT INSIGHT: Nollywood’s Management in Action 146 | Building Management Skills 146 | a Hit in a Developing Economy 162 | Technological Managing Ethically 146 | Small Group Breakout Exercise 147 | Forces 163 | Sociocultural Forces 163 | Demographic Be the Manager 147 | Case in the News: Pursuing Quality, Forces 164 | Political and Legal Forces 165 Goldman Sachs Gets Diversity, Too 147 Notes 148 The Changing Global Environment 166 The Process of Globalization 166 | Declining Barriers to Trade and Investment 167 | MANAGING GLOBALLY: Tariffs Are Tangling Auto Supply Chains 168 | Declining Barriers of Distance and Culture 169 | Effects of Free Trade on Managers 170 The Role of National Culture 171 Cultural Values and Norms 171 | Hofstede’s Model of National Culture 171 | The GLOBE Project 173 | National Culture and Global Management 173 Summary and Review 175 Management in Action 176 | Building Management Skills 176 | Managing Ethically 176 | Small Group Breakout Exercise 177 | Be the Manager 177 | Case in the News: Huawei’s Contentious but High-Potential Environment 177 Notes 178 Part Three | Decision Making, Planning, and Strategy Chapter 7 Overview 184 Decision Making, The Nature of Managerial Decision Making 184 ­Learning, Creativity, Programmed and Nonprogrammed Decision Making 185 | and Entrepreneurship 182 The Classical Model 186 | The Administrative Model 187 Steps in the Decision-Making Process 189 Recognize the Need for a Decision 190 | Generate Alternatives 190 | Assess Alternatives 191 | A MANAGER’S CHALLENGE MANAGEMENT INSIGHT: Ensuring Decisions Contribute to Creative Decision Making Key to 23andMe’s Success 183 Sustainability 192 | Choose among Alternatives 193 |  Contents xxi Implement the Chosen Alternative 193 | Learn from Formulating Strategy 222 Feedback 193 SWOT Analysis 222 | The Five Forces Model 224 Cognitive Biases and Decision Making 194 Formulating Business-Level Strategies 225 Confirmation Bias 194 | Representativeness Bias 194 | Low-Cost Strategy 226 | Differentiation Strategy 226 | Illusion of Control 195 | Escalating Commitment 195 | Focused Low-Cost and Focused Differentiation Be Aware of Your Biases 195 Strategies 227 | MANAGEMENT INSIGHT: Choosing a Group Decision Making 196 Strategy: Differentiating Canada Goose 227 MANAGER AS A PERSON: Glossier Shines Because Founder Formulating Corporate-Level Strategies 229 Seeks Input from Others 196 | The Perils of Concentration on a Single Industry 229 | Vertical Groupthink 197 | Devil’s Advocacy and Dialectical Integration 229 | Diversification 231 | International Inquiry 197 | Diversity among Decision Makers 198 Expansion 232 | MANAGING GLOBALLY: FourKites Organizational Learning and Creativity 198 Flying High 233 Creating a Learning Organization 199 | MANAGING Planning and Implementing Strategy 236 GLOBALLY: Western Union Continues to Learn 200 | Promoting Individual Creativity 201 | Promoting Group Summary and Review 236 Creativity 202 Management in Action 238 | Building Management Skills 238 | Managing Ethically 238 | Small Group Breakout Exercise 239 | Entrepreneurship and Creativity 203 Be the Manager 239 | Case in the News: Best Buy Strategies Entrepreneurship and New Ventures 203 | ETHICS IN Evolve with the Times 239 ACTION: Turning Plastic Waste into Entrepreneurial Notes 240 Gold 204 | Intrapreneurship and Organizational Learning 205 Summary and Review 206 Management in Action 207 | Building Management Skills 207 | Managing Ethically 207 | Small Group Breakout Exercise 208 | Be the Manager 208 | Case in the News: Teaching Soldiers to Chapter 9 Be Creative on the Battlefield 208 Value Chain ­Management: Notes 209 Functional ­Strategies for Competitive Advantage 244 Chapter 8 The Manager as a Planner A MANAGER’S CHALLENGE and Strategist 212 Redesigning Mattel for the Digital Generation 245 Overview 246 A MANAGER’S CHALLENGE Functional Strategies, the Value Chain, and Despite Pandemic Setbacks, Marriott CEO Plans for Competitive Advantage 246 Growth 213 Functional Strategies and Value Chain Management 247 | Value Chain Analysis 249 Overview 214 Improving Responsiveness to Customers 249 What Do Customers Want? 250 | MANAGING GLOBALLY: Planning and Strategy 214 HappyOrNot Measures Customer Satisfaction 250 | The Nature of the Planning Process 215 Managing the Value Chain to Increase Responsiveness to Customers 251 | Customer Relationship Why Planning Is Important 215 | Levels of Planning 216 | Management 252 MANAGER AS A PERSON: How Starbucks’ COO Heats Up Growth 219 | Time Horizons of Plans 220 | Standing Improving Quality 253 Plans and Single-Use Plans 220 | Scenario Planning 220 Total Quality Management 254 | MANAGEMENT INSIGHT: Determining the Organization’s Mission and Six Sigma Buys Time for CPAs 256 Goals 221 Improving Efficiency 257 Defining the Business 222 | Establishing Major ETHICS IN ACTION: Does Efficiency Hurt People—and Goals 222 Companies? 257 | Facilities Layout, Flexible xxii Contents Manufacturing, and Efficiency 258 | Just-in-Time Summary and Review 267 Inventory and Efficiency 259 | Self-Managed Work Management in Action 268 | Building Management Skills 268 | Teams and Efficiency 260 | Process Reengineering and Managing Ethically 268 | Small Group Breakout Exercise 269 | Efficiency 260 | Information Systems, the Internet, Be the Manager 269 | Case in the News: Brooks Brothers and Efficiency 261 Redesigns Itself 269 Notes 270 Improving Innovation 262 MANAGER AS A PERSON: Jeff Bezos, Amazon’s Innovator in Chief 262 | Two Kinds of Innovation 263 | Strategies to Promote Innovation and Speed Product Development 263 Part Four | Organizing and Controlling Chapter 10 Chapter 11 Managing Organizational Organizational Control and Structure and Culture 274 Change 310 A MANAGER’S CHALLENGE A MANAGER’S CHALLENGE Alaska Air Structures Work with Passengers in Mind 275 Procter & Gamble Controls Its Digital Advertising 311 Overview 276 Overview 312 Designing Organizational Structure 276 What Is Organizational Control? 312 The Organizational Environment 277 | Strategy 277 | The Importance of Organizational Control 313 | Technology 278 | Human Resources 278 Control Systems and Technology 314 | The Control Process 315 Grouping Tasks into Jobs: Job Design 279 Job Enlargement and Job Enrichment 280 | MANAGING Output Control 318 GLOBALLY: IKEA Is Redesigning Itself for the Future 281 | Financial Measures of Performance 318 | MANAGEMENT The Job Characteristics Model 282 INSIGHT: Problem Solvers Wanted in Today’s Job Market 319 | Organizational Goals 320 | Operating Budgets 321 | Grouping Jobs into Functions and Divisions: MANAGING GLOBALLY: Zero-Based Budgeting Helps Control Designing Organizational Structure 282 Expenses 321 | Problems with Output Control 322 Functional Structure 283 | Divisional Structures: Product, Market, and Geographic 284 | ETHICS IN ACTION: Behavior Control 323 Pfizer’s Prescription for a Healthier Organizational Direct Supervision 323 | Management by Objectives 324 | Structure 286 | Matrix and Product Team Designs 288 Bureaucratic Control 325 | Problems with Bureaucratic Control 326 Coordinating Functions and Divisions 290 Allocating Authority 291 | Integrating and Coordinating Clan Control 327 Mechanisms 294 Organizational Change 328 Organizational Culture 296 Lewin’s Force-Field Theory of Change 328 | Evolutionary Where Does Organizational Culture Come From? 297 | and Revolutionary Change 329 | Managing Change 329 | MANAGER AS A PERSON: Winning the Culture War at MANAGER AS A PERSON: Nordstrom Family Continues to NASA 299 | Strong, Adaptive Cultures versus Weak, Make Changes 331 | ETHICS IN ACTION: Volkswagen: Inert Cultures 300 The Long Road to Redemption 333 Summary and Review 301 Summary and Review 334 Management in Action 303 | Building Management Skills 303 | Management in Action 335 | Building Management Skills 335 | Managing Ethically 304 | Small Group Breakout Exercise 304 | Managing Ethically 335 | Small Group Breakout Exercise 336 | Be the Manager 305 | Case in the News: Restructuring and Be the Manager 336 | Case in the News: How Stitch Fix Rebranding Go Hand in Hand at Ogilvy 305 Controls Inventory and Customer Experience 336 Notes 307 Notes 337  Contents xxiii Chapter 12 Training and Development 353 Types of Training 354 | Types of Development 355 | Human Resource Transfer of Training and Development 356 Management 340 Performance Appraisal and Feedback 356 Types of Performance Appraisal 357 | Who Appraises Performance? 359 | Effective Performance Feedback 360 | Recent Trends in Performance A MANAGER’S CHALLENGE Appraisal 361 Cisco Systems Connects Data—and People, Too 341 Pay and Benefits 362 Pay Level 362 | MANAGEMENT INSIGHT: Treating Overview 342 Employees Well Leads to Satisfied Customers 362 | Pay Structure 363 | Benefits 364 Strategic Human Resource Management 342 Overview of the Components of HRM 343 Labor Relations 365 Unions 365 | Collective Bargaining 366 The Legal Environment of HRM 344 Summary and Review 366 Recruitment and Selection 345 Management in Action 368 | Building Management Skills 368 | Human Resource Planning 346 | MANAGER AS A PERSON: Managing Ethically 368 | Small Group Breakout Exercise 369 | CHRO Has Critical Role at Unilever 347 | Job Be the Manager 369 | Case in the News: How Strategic HR Analysis 348 | External and Internal Recruitment 348 | Keeps Southwest Airlines Flying 370 The Selection Process 350 | FOCUS ON DIVERSITY: Notes 371 Recruiting a Diverse Workforce 350 Part Five | Leading Individuals and Groups Chapter 13 Goal-Setting Theory 389 Motivation and Learning Theories 390 Operant Conditioning Theory 390 | Social Learning Performance 374 Theory 392 Pay and Motivation 394 ETHICS IN ACTION:Is Merit Pay Fair? 395 | Basing A MANAGER’S CHALLENGE Merit Pay on Individual, Group, or Organizational Performance 396 | Salary Increase or Bonus? 396 | ATS CEO Makes Being the Best a Realistic Goal 375 Examples of Merit Pay Plans 397 Summary and Review 398 Overview 376 Management in Action 399 | Building Management Skills 399 | Managing Ethically 400 | Small Group Breakout Exercise 400 | The Nature of Motivation 376 Be the Manager 400 | Case in the News: DTE Energy Ignites Expectancy Theory 379 Employees with a Shared Sense of Purpose 401 Expectancy 379 | Instrumentality 380 | Valence 380 | Notes 402 Bringing It All Together 381 Need Theories 381 MANAGING GLOBALLY: Needs Vary—Sometimes—from Country to Country 382 | Maslow’s Hierarchy of Needs 382 | Chapter 14 Alderfer’s ERG Theory 383 | Herzberg’s Motivator-Hygiene Theory 384 | McClelland’s Needs for Achievement, Leadership 406 Affiliation, and Power 385 | Other Needs 385 Equity Theory 385 Equity 385 | Inequity 386 | Ways to Restore A MANAGER’S CHALLENGE Equity 386 | FOCUS ON DIVERSITY: For Diversity to Satya Nadella Leads Microsoft into New Business 407 Motivate, It Must Come with Equity 388 | Equity and Justice in Organizations 388 Overview 408 xxiv Contents The Nature of Leadership 408 Overview 438 Personal Leadership Style and Managerial Tasks 409 | Servant Leadership 409 | MANAGER AS A PERSON: Groups, Teams, and Organizational Covenant Health’s Servant Leader 409 | Leadership Effectiveness 438 Styles across Cultures 410 | Power: The Key to MANAGEMENT INSIGHT: Soft Skills Critical to Team Leadership 411 | Empowerment: An Ingredient in Success 439 | Groups and Teams as Performance Modern Management 413 Enhancers 440 | Groups, Teams, and Responsiveness Trait and Behavior Models of Leadership 414 to Customers 440 | Teams and Innovation 441 | Groups and Teams as Motivators 441 The Trait Model 414 | The Behavior Model 414 | ETHICS IN ACTION: Initiating Structure for Ethics at Types of Groups and Teams 442 Salesforce 415 The Top Management Team 442 | Research Contingency Models of Leadership 416 and Development Teams 442 | Command Groups 443 | Task Forces 443 | Self-Managed Fiedler’s Contingency Model 417 | MANAGING Work Teams 443 | MANAGER AS A PERSON: GLOBALLY: International Differences in Leadership 419 | Sticking with Self-Directed Teams 444 | House’s Path–Goal Theory 420 | The Leader Substitutes Virtual Teams 445 | Friendship Groups 446 | Model 421 | Bringing It All Together 422 Interest Groups 447 Transformational Leadership 422 Group Dynamics 447 Being a Charismatic Leader 424 | Stimulating Employees Group Size, Tasks, and Roles 447 | Group Intellectually 424 | Engaging in Developmental Leadership 450 | Group Development over Consideration 425 | The Distinction between Time 450 | MANAGEMENT INSIGHT: Helping a Team Transformational and Transactional Leadership 425 Develop 451 | Group Norms 452 | Group Gender and Leadership 425 Cohesiveness 454 | FOCUS ON DIVERSITY: Leveraging Team Members’ Diversity 456 Emotional Intelligence and Leadership 426 MANAGEMENT INSIGHT: How to Be a High-EQ Leader 427 Managing Groups and Teams for High Summary and Review 428 Performance 458 Management in Action 429 | Building Management Skills 429 | Motivating Group Members to Achieve Organizational Managing Ethically 429 | Small Group Breakout Exercise 430 | Goals 458 | Reducing Social Loafing in Be the Manager 430 | Case in the News: CEO’s Leadership Groups 459 | Helping Groups to Manage Conflict Helps Levi Strauss Succeed 431 Effectively 460 Notes 432 Summary and Review 461 Management in Action 462 | Building Management Skills 462 | Managing Ethically 463 | Small Group Breakout Exercise 463 | Be the Manager 463 | Case in the News: Adient Builds Better with Teams 464 Chapter 15 Notes 465 Effective Groups and Teams 436 A MANAGER’S CHALLENGE Army Futures Command Battles Bureaucracy 437  Contents xxv Part Six | Managing Critical Organizational Processes Chapter 16 Chapter 17 Promoting Effective Managing ­Conflict, Communication 468 ­Politics, and Negotiation 496 A MANAGER’S CHALLENGE Promoting Better Communication at Boston Consulting A MANAGER’S CHALLENGE Group 469 How Vimeo’s CEO Became Influential 497 Overview 470 Overview 498 Communication and Management 470 Organizational Conflict 498 The Importance of Good Communication 470 | Types of Conflict 499 | ETHICS IN ACTION: Giving Voice The Communication Process 471 | The Role of to Values 500 | Sources of Conflict 501 | Conflict Perception in Communication 472 | The Dangers Management Strategies 503 | FOCUS ON DIVERSITY: of Ineffective Communication 473 | ETHICS IN ACTION: When Experience Becomes a Pitfall 504 Questions Can Open the Door to Honest, Open Communication 473 Negotiation 506 Distributive Negotiation and Integrative Bargaining 507 | Information Richness and Communication Strategies to Encourage Integrative Bargaining 507 | Media 474 MANAGER AS A PERSON: How to Negotiate a Job Offer 509 Face-to-Face Communication 475 | Spoken Communication Electronically Transmitted 476 | Organizational Politics 509 Personally Addressed Written Communication 477 | The Importance of Organizational Politics 510 | Political Impersonal Written Communication 478 Strategies for Gaining and Maintaining Power 510 | MANAGING GLOBALLY: Grassroots Knowledge Is Power 512 | Communication Networks 478 Political Strategies for Exercising Power 513 Communication Networks in Groups and Teams 478 | Organizational Communication Networks 480 | Summary and Review 515 External Networks 481 Management in Action 516 | Building Management Skills 516 | Managing Ethically 516 | Small Group Breakout Exercise 517 | Technology and Communication 481 Be the Manager 517 | Case in the News: Disastrous Conflict The Internet 481 | Intranets 481 | Collaboration at Boeing 517 Software 482 Notes 519 Communication Skills for Managers 482 Communication Skills for Managers as Senders 483 | MANAGEMENT INSIGHT: Make That First Impression Count 483 | Communication Skills for Managers as Receivers 485 | Understanding Linguistic Chapter 18 Styles 486 Using Advanced Summary and Review 489 ­Information Management in Action 490 | Building Management Skills 490 | ­Technology to Increase Managing Ethically 490 | Small Group Breakout Exercise 491 | Performance 522 Be the Manager 491 | Case in the News: How Netflix Aims to Make Communication Radically Honest 492 Notes 493 A MANAGER’S CHALLENGE AI Helps Managers Do a Better Job 523 xxvi Contents Overview 524 The Impact and Limitations of Information Technology 541 Information and the Manager’s Job 524 Strategic Alliances, B2B Network Structures, and IT 541 | Attributes of Useful Information 525 | What Is Flatter Structures and Horizontal Information Flows 542 Information Technology? 526 | Information and Decisions 526 | Information and Control 527 | Summary and Review 543 ETHICS IN ACTION: Kroger’s Strategic Use of Consumer Management in Action 545 | Building Management Skills 545 | Data 529 | Information and Coordination 529 Managing Ethically 545 | Small Group Breakout Exercise 546 | Be the Manager 546 | Case in the News: Shell Uses AI to Fuel a The IT Revolution 530 Transformation 546 The Effects of Advancing IT 530 | IT and the Product Notes 547 Life Cycle 531 | MANAGEMENT INSIGHT: Amazon’s Alexa Goes to Work 532 | The Network of Computing Power 533 Types of Management Information Systems 534 The Organizational Hierarchy: The Traditional Information System 535 | Transaction-Processing Systems 535 | Name Index NI-1 Operations Information Systems 536 | Decision Support Systems 536 | Artificial Intelligence and Organization Index OI-1 Expert Systems 537 | MANAGING GLOBALLY: China’s Ant Group Runs on AI 537 | Enterprise Resource Planning Systems 538 | E-Commerce Systems 540 Subject Glindex SGI-1  Contemporary Management  Management part 1 CHAPTER 1 Managers and Managing Luis Alvarez/Getty Images Learning Objectives After studying this chapter, you should be able to: LO1-1 Describe what management is, why management is important, what managers do, and how managers use organizational resources efficiently and effectively to achieve organizational goals. LO1-2 Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance. LO1-3 Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy. LO1-4 Distinguish among three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively. LO1-5 Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced technologies. LO1-6 Discuss the principal challenges managers face in today’s increasingly competitive global environment.  A MANAGER’S CHALLENGE CEO Fosters Growth at SurveyMonkey What difference can a manager make? Listening to employees and customers In the case of Zander Lurie at SurveyMonkey, revealed to Lurie a core value for SurveyMon- managing meant stabilizing a company and then key: curiosity. He realized that surveys are valu- leading it toward renewed growth. When Lurie, able when they enable customers to explore who headed GoPro’s entertainment division, what they are curious about, and employees joined the board of directors at SurveyMonkey, are valuable when they work in an environment it was simply a chance to share his financial that encourages questions and ideas. So Lurie expertise and collaborate with then CEO, his began to build employee surveys into corporate close friend Dave Goldberg. But Goldberg died decision making and to structure rewards for suddenly at the age of 47, and the survey soft- asking good questions. Ideas from employees ware company’s shocked employees needed led Lurie to a new business opportunity: artificial leadership. The board appointed Lurie to find intelligence that applies knowledge of research a replacement, but a few months after the new methods to help users improve their surveys. CEO was appointed, it became apparent that An employee suggestion to consider the needs he was not a good fit. The board asked Lurie of contract workers such as janitors and cafete- to take the position. Desiring to maintain his ria workers led to improved benefits packages.3 friend’s legacy, Lurie resigned from GoPro to Valuing curiosity propels SurveyMonkey’s accept the challenge.1 commitment to hiring a diverse workforce Goldberg had been respected for building and enabling their contributions. The com- a 10-year-old tech company with 10 employ- pany has, for example, hired women at all ees into a business with revenues approach- ing $189 million. Following his death, many employees began sharing the hashtag #Make- DaveProud, even wearing it on T-shirts. Lurie realized that his initial role would be to help employees process their loss. He began by using the company’s strength in research to survey employees about what they valued about the company and their jobs. He asked customers what they appreciated most about the company’s products. He set up regular meetings to hear from employees below the executive ranks. At the same time, he reviewed SurveyMonkey’s lines of business to assess which had potential for profitable growth. He shut down a business line that was holding the company back. This required layoffs but sig- Zander Lurie, CEO of SurveyMonkey, used his management skills to help naled to the remaining employees that Survey- employees deal with the tragic loss of the company’s founder and put the firm back on track to a brighter future. Monkey was committed to a stronger future.2 Imeh Akpanudosen/Stringer/Getty Images  levels of management, including a female career growth—something the company is now chief financial officer with a track record at a seeking to improve. SurveyMonkey also gets larger software firm. Consistent with a spirit of employees involved in selecting the charitable curiosity, Lurie encourages managers to draw programs it supports as part of its commitment out everyone’s voice by asking open-ended to being socially responsible.4 questions, inviting people to enter discussions, As SurveyMonkey righted itself after the loss giving honest feedback, and digging below of Dave Goldberg, Lurie could focus more on the surface. This brings more viewpoints into future profit growth. Under his leadership, more decision making, as when employees encour- of the business is shifting to paid services (in aged benefits planners to think about the contrast to the original free survey tools) and company’s contract workers. Another les- to growth markets outside the United States.5 son from listening was that most employees Lurie is translating his leadership success into feel respected, but many don’t see a path to corporate value. Overview Managing today’s organizations is a complex affair, and seasoned leaders like Zander Lurie face multiple challenges from within and outside th