Text
Management: people, performance, change
t a b l e o f c o n t e n t s
PART ONE: OVERVIEW 2
Chapter 1
Management and Its Evolution 4
Lincoln Electric Finds One ?Best Way? 5
Management in the New Millennium 7
The Four Management Functions 9
Managerial Roles 11
Management as a Set of Skills 12
The Evolution of Management Thought 14
Early Management Thought 15
The Operational Perspective 16
Bureaucratic Management 23
Administrative Management 25
Behavioral Perspective 26
Contemporary Management Perspectives 31
Concluding Thoughts 36
Summary 37
Discussion Questions 38
Management Minicase 1.1: Are Job Descriptions Always Necessary? 39
Management Minicase 1.2: Having Fun Is a Top Priority at Peoplesoft 40
Individual/Collaborative Learning Case 1.1: What Can a Company Do to Change
Employees? Bad Habits? 41
Internet Exercise 1.1: Lincoln Electric 42
Manager?s Checkup 1.1: Do You Fit in a Bureaucratic Organization? 42
Manager?s Checkup 1.2: Are You a Theory X or a Theory Y Manager? 43
Part One Integrated Case: Anne Mulcahy: New Managerial Challenges
at Xerox 45
PART TWO: THE CULTURE OF MANAGEMENT 48
Chapter 2
Managing in a Global Environment 50
Toyota Goes Local for Growth 51
The Environment of International Business 52
The Changing Pattern of International Business 53
Major Factors Affecting International Business 64
Entry Strategy 68
Choosing Foreign Countries 68
When to Enter Foreign Countries 71
Scale of Involvement 74
xxvi
t a b l e o f c o n t e n t s
xxvii
Mode of Entry 75
Exporting 75
Turnkey Projects 76
Licensing 76
Franchising 77
Joint Ventures and Strategic Alliances 78
Wholly Owned Subsidiaries 80
Managing the Global Firm 82
Selection 83
Training 83
Career Development 84
Compensation 85
Ethics and Social Responsibility 86
Applications: Management Is Everyone?s Business 89
Concluding Thoughts 90
Summary 91
Discussion Questions 92
Management Minicase 2.1: Kickbacks in Germany Spotlight U.S. Complaints 92
Management Minicase 2.2: What Ethical Responsibility Does a Multinational
Company Have? 93
Individual/Collaborative Learning Case 2.1: The New Cold War at Boeing 95
Internet Exercise 2.1: Colgate?s Clean Sweep 96
Manager?s Checkup 2.1: Careers in Global Management 97
Chapter 3
Managing Social Responsibility and Ethics 100
No Sweat for Levi Strauss 101
What Are Business Ethics? 102
Ethics Approaches 104
Utilitarianism 104
Individualism 104
Rights Approach 105
Justice Approach 105
Applications of Ethics Approaches 106
Codes of Ethics 106
Corporate Credos 107
Ethical Policy Statements 107
Managing Ethics 109
Ethics Training 109
Ethical Structures 109
Whistleblower Policies 111
Personal Ethics 112
t a b l e o f c o n t e n t s
Ethical Dilemmas in the Workplace 114
Performance Appraisal 114
Employee Discipline 115
Office Romance 116
Giving Gifts in the Workplace 117
Social Responsibility 119
The Benefits of Social Responsibility 119
The Costs of Social Responsibility 121
Organizational Stakeholders 123
Owners 124
Employees 125
Governments 125
Customers 126
Community 126
Competitors 127
Social Activist Groups 128
Strategies for Managing Stakeholders 129
Confrontation 130
Damage Control 130
Accommodation 130
Proactive 131
Applications: Management Is Everyone?s Business 132
Concluding Thoughts 133
Summary 134
Discussion Questions 135
Management Minicase 3.1: Should Job Seekers Stretch the Truth to Get a Job? 136
Management Minicase 3.2: Employees? Retirement Savings Disappear in the
Aftermath of the Enron Scandal 137
Individual/Collaborative Learning Case 3.1: Do Sales Commissions Cause Sales
Representatives to Behave Unethically? 138
Internet Exercise 3.1: Social Responsibility at Levi Strauss 140
Manager?s Checkup 3.1: What Are Your Ethical Beliefs? 141
Chapter 4
Managing Organizational Culture and Change 142
SAS: AWorker-Friendly Culture in a High-Tech World 143
Understanding the Nature of Culture and Change 145
Organizational Culture 145
The Importance of Culture 148
Employee Self-Management 149
Stability 149
Socialization 150
Implementation of the Organization?s Strategy 153
Beware the Darkside 153
xxviii
Managing Cultural Processes 153
Cultural Symbols 154
Company Rituals and Ceremonies 154
Company Heroes 155
Stories 155
Language 155
Leadership 156
Organizational Policies and Decision Making 157
Characteristics and Types of Organizational Culture 157
Cultural Uniformity versus Heterogeneity 158
Strong versus Weak Cultures 158
Culture versus Formalization 158
National versus Organizational Culture 159
Types 159
Managing Organizational Change 162
Types of Change 163
Forces for Change 163
Resistance to Change 166
Models of Organizational Change 169
Implementing Organizational Change 173
Tactics for Introducing Change 174
Applications: Management Is Everyone?s Business 178
Concluding Thoughts 179
Summary 180
Discussion Questions 181
Management Minicase 4.1: How Is the Digital Age Changing Organizational
Culture in Asia? 182
Management Minicase 4.2: How Jack Welch Changed Culture at General
Electric 182
Individual/Collaborative Learning Case 4.1: Enterprise Resource Planning:
An Example of Organizational Change 183
Internet Exercise 4.1: Charles Schwab: Recommending Change as a Customer 184
Manager?s Checkup 4.1: Assessing Personal Acceptance of Change 185
Part Two Manager?s Hot Seat: Mustang Jeans: Negotiation Amidst Cultural
Differences 186
Part Two Integrated Case: Bribery: A Global Custom? 188
PART THREE: MANAGEMENT STRATEGY AND DECISION MAKING 192
Chapter 5
Managing the Planning Process 194
How Coke Rebounded 195
What Is Planning? 197
t a b l e o f c o n t e n t s
xxix
t a b l e o f c o n t e n t s
The Benefits of Planning 198
Assessment of External Forces 199
Developing a Sense of Direction and Purpose 199
Identifying the Factors That Affect the Organization 199
Encouraging Participation 200
Coordination of Efforts 200
Establishment of Priorities 200
Focusing Attention on Different Time Horizons 201
Understanding Circumstances Contributing to Past Success or Failure 201
Ensuring the Availability of Adequate Resources 202
Establishing Performance Standards 202
Supporting Organizational Control Systems 203
Developing ?What If? Scenarios 204
Management Development 204
The Pitfalls of Planning 204
Poor Forecasts of Future Conditions 205
Plans Imposed from Above 206
Planning as a Self-Contained Activity 206
Extensive Bureaucratization 207
Inflexible Adherence to Objectives and Processes 208
Keys to Successful Planning 208
Involving Different Organizational Levels 208
Using Both Numerical and Judgmental Methods 208
Viewing Planning as Continuous and Capable of Adapting to Change 209
Avoiding Paralysis of the Analysis 209
Concentrating on a Manageable Set of Issues 209
Formal Planning and Opportunistic Planning 210
The Formal Planning Process 212
Setting Objectives 212
Charting a Course of Action 217
Implementation 222
Applications: Management Is Everyone?s Business 229
Concluding Thoughts 230
Summary 231
Discussion Questions 232
Management Minicase 5.1: The Pitfalls of Top-Down Planning 233
Management Minicase 5.2: Drug Manufacturers Broad-Sided by Globalization and
Internet Technology Struggle with the ?Old? Planning Model 234
Individual/Collaborative Learning Case 5.1: Why Did NASA Stick with the Space
Shuttle So Long? 235
Internet Exercise 5.1: E-Business Goes E-Bankrupt but Survivors Are Doing
Well 237
xxx
Chapter 6
Decision Making 238
Decisions, Decisions, Decisions 239
Characteristics of Management Decision Making 240
Programmability 241
Uncertainty 242
Risk 242
Conflict 243
Decision Scope 243
Crisis Situations 244
Stages of Decision Making 246
Identifying and Diagnosing the Problem 246
Generating Alternative Solutions 246
Evaluating Alternatives 247
Choosing the Best Alternative 248
Implementing the Decision 248
Evaluating the Results 249
The Limits of Rational Decision Making 250
Organization Politics 251
Emotions and Personal Preferences 251
Illusion of Control 252
Nonrational Decision-Making Models 253
Satisficing Model 253
Garbage Can Model 254
Decision Making in Groups 254
The Benefits and Problems of Group Decision Making 254
Managing Group Decision Making 256
Decision-Making Skills 259
Time Management 260
Delegation 261
Applications: Management Is Everyone?s Business 264
Concluding Thoughts 265
Summary 267
Discussion Questions 268
Management Minicase 6.1: US Airways Escapes a Near Death Experience 269
Management Minicase 6.2: A Blockbuster Turnaround Decision 270
Individual/Collaborative Learning Case 6.1: Intel Recalls the Pentium Chip 271
Internet Exercise 6.1: Decision Making at Coca-Cola 272
Manager?s Checkup 6.1: Determining Decision Risk and Uncertainty
Preferences 273
t a b l e o f c o n t e n t s
xxxi
Chapter 7
Strategic Management 274
Canon Climbs to the Top 275
The Strategic Management Process 276
Analyzing External and Internal Environments 281
The External Environment 282
Components of External Analysis 282
Scope of the External Analysis 286
The Internal Environment 297
Resource Types 299
Analyzing the Firm?s Capabilities 301
Strategic Intent and Mission 305
Strategy Formulation 308
Corporate-Level Strategy 309
Business-Level Strategy 313
Strategy Implementation 315
Organizational Structure and Controls 316
Cooperative Strategies 316
Human Resource Strategies 317
Strategic Leadership 317
Corporate Entrepreneurship and Innovation 317
Strategic Outcomes 318
Applications: Management Is Everyone?s Business 319
Concluding Thoughts 320
Summary 321
Discussion Questions 322
Management Minicase 7.1: Where Has Kodak Gone Wrong? 322
Management Minicase 7.2: A Miracle Turnaround in a Very Tough Industry:
The Case of Hyundai 323
Individual/Collaborative Learning Case 7.1: The (Fat) Wages of Scandal 324
Internet Exercise 7.1: Internet Strategies 325
Chapter 8
Entrepreneurship and Innovation 326
Entrepreneurs: Some Success Stories! 327
What Is Entrepreneurship? 328
Entrepreneurship Myths 328
ADistinction between an Entrepreneurial Venture and a Small Business 330
The Importance of Entrepreneurship 331
Job Creation 331
Innovation 332
Opportunities for Diverse People 332
t a b l e o f c o n t e n t s xxxii
Entrepreneurial Characteristics and Skills 332
Characteristics of Entrepreneurs 333
Entrepreneurial Skills 335
Starting and Managing an Entrepreneurial Venture 338
New Business Ideas 338
Why Entrepreneurs Fail 339
Business Plan 340
Legal Forms 342
Sources of Financial Resources 344
Managing Growth 346
Alternative Forms of Entrepreneurship 347
Intrapreneurship 348
Spin-Offs 349
Franchises 350
Innovation 350
Applications: Management Is Everyone?s Business 355
Concluding Thoughts 356
Summary 357
Discussion Questions 358
Management Minicase 8.1: Should an Entrepreneur?s Leadership Style Change as
the Business Expands? 358
Management Minicase 8.2: Rapid Growth Short-Circuits Wired Venture?s Public
Offering Plans 360
Individual/Collaborative Learning Case 8.1: Running a Sole Proprietorship 360
Internet Exercise 8.1: Freedom! 361
Manager?s Checkup 8.1: Are You a High Achiever? 362
Part Three Manager?s Hot Seat: The Living Room: Conflict Management in Small
Business 365
Part Three Integrated Case: Turbulence in the Sky: The Airline Industry in Need
of a
Survival Strategy 367
PART FOUR: ORGANIZATION MANAGEMENT 370
Chapter 9
Managing the Structure and Design of Organizations 372
Nokia Changes Its Structure in Order to Get Closer to the Customer 373
The Vertical Dimension of Organization Structure 374
Unity of Command 374
Authority, Responsibility, and Accountability 375
Span of Control 378
Centralization and Decentralization 379
Formalization 380
t a b l e o f c o n t e n t s
xxxiii
The Horizontal Dimension of Organization Structure 381
Functional Structure 381
Divisional Approach 382
Matrix Approach 386
Coordination Mechanisms 388
Meetings 388
Organizationwide Reward Systems 388
Task Forces and Teams 389
Liaison Roles 390
Integrating Managers 390
Organizational Culture 391
Organization Design 393
Mechanistic Organizations 395
Organic Organizations 395
Boundaryless Organizations 396
Redesigning Organizations 398
Applications: Management Is Everyone?s Business 402
Concluding Thoughts 403
Summary 404
Discussion Questions 405
Management Minicase 9.1: Should a Company Cooperate with Its Competitor? 406
Management Minicase 9.2: Restructuring the 3M Company for Growth and
Profitability 407
Individual/Collaborative Learning Case 9.1: Changing Company Culture at
Gateway 408
Internet Exercise 9.1: Making People Happy on the Web 410
Manager?s Checkup: Do You Follow the Chain of Command? 410
Chapter 10
Human Resource Management 412
Brewing Success at Starbucks with HR 413
The Importance of Human Resource Management 414
Environment of Human Resources 415
Workforce Diversity 415
Globalization 416
Legislation 416
Unions 420
The Human Resource Management Process 423
Human Resource Planning 424
Staffing Process 427
Orientation 432
Employee Training 434
Career Development 441
Performance Appraisal 442
Compensation 444
t a b l e o f c o n t e n t s xxxiv
Applications: Management Is Everyone?s Business 449
Concluding Thoughts 450
Summary 451
Discussion Questions 451
Management Minicase 10.1: Should a Company Pay More to Bilingual
Employees? 452
Management Minicase 10.2: A Case of Sexual Harassment? 453
Individual/Collaborative Learning Case 10.1: Online Degree Programs Surge,
but Do They Pass Hiring Tests? 454
Internet Exercise 10.1: Help on the Web 455
Chapter 11
Managing Employee Diversity 456
Employee Diversity Equals Corporate Success 457
The Meaning of Diversity 458
Advantages of Employee Diversity 459
The Challenges of Diversity 464
Diversity Today 467
African Americans 469
Asian Americans 470
Disabled Americans 471
Foreign-Born Americans 471
Hispanic Americans 472
Homosexuals 475
Older Workers 475
Religious Diversity 476
Women 477
Building on Diversity 479
Top Management Commitment 479
Linking Diversity Initiatives to Business Strategies and Objectives 479
Management Responsibility and Accountability 483
Diversity Audits 483
Developmental Activities 483
Encouraging Diversity Networks 484
Accommodating Family Needs 485
Applications: Management Is Everyone?s Business 487
Concluding Thoughts 487
Summary 489
Discussion Questions 489
Management Minicase 11.1: A Big-Brand Job and More Money Are Not
Enough 490
Management Minicase 11.2: Stereotypes Have a Long History 491
Individual/Collaborative Learning Case 11.1: No Way to Treat a Lady? 492
Internet Exercise 11.1: Managing Employee Diversity 494
t a b l e o f c o n t e n t s
xxxv
Part Four Manager?s Hot Seat: Earth First Pharmaceuticals: Self-Management and
Diversity/Discrimination 495
Part Four Integrated Case: Unilever and Gender Diversity 497
PART FIVE: LEADERSHIP IN MANAGEMENT 500
Chapter 12
Motivation 502
Getting the Job Done: Oil Drilling in the Ocean 503
Motivation: An Overview 504
Content View of Motivation 506
Process View of Motivation 510
Motivation by Design 525
Job Enlargement 525
Job Rotation 525
Job Enrichment 525
Job Characteristics Model 526
Applications: Management Is Everyone?s Business 529
Concluding Thoughts 530
Summary 532
Discussion Questions 532
Management Minicase 12.1: Does Money Motivate? 533
Management Minicase 12.2: The Give and Take of Motivation: Give Them What
They Need and Take Away the Obstacles 534
Individual/Collaborative Learning Case 12.1: Motivating Low-Wage Workers 355
Internet Exercise 12.1: The Disappearing Carrot Revisited 537
Chapter 13
Leadership 538
Leadership: Many Paths to Success . . . and Failure 539
What Makes an Effective Leader? 541
Management versus Leadership 542
Leadership Theories 546
Person-Based Theories 547
Situational Theories 550
Dispersed Theories 556
Exchange Theories 559
Leadership and Emotional Intelligence 562
Applications: Management Is Everyone?s Business 564
Concluding Thoughts 565
Summary 566
Discussion Questions 566
t a b l e o f c o n t e n t s xxxvi
Management Minicase 13.1: Put It on the Card: What?s Your Leadership
Message? 567
Management Minicase 13.2: Where Having Fun Really Pays 568
Individual/Collaborative Learning Case 13.1: Leaders: Made, Not Born 569
Internet Exercise 13.1: Leading the Pack 570
Manager?s Checkup 13.1: Power and Influence 571
Manager?s Checkup 13.2: What?s Your EQ at Work? 573
Chapter 14
Managing Teams 574
Teamwork at Toyota and Boeing 575
The Benefits of Teams 576
Costs and Productivity 578
Quality Improvements 578
Speed 579
Innovation 579
Types of Teams 580
Self-Managed Teams 580
Project Teams 583
Parallel Teams 583
Virtual Teams 585
Managing Team Performance 586
Stages of Team Development 586
Roles of Team Members 587
The Role of the Team Leader 588
Behavioral Dimensions of Effective Teams 590
Team Performance Problems 594
Free Riders 594
The Nonconforming High Performer 596
Lack of Rewards for Teamwork 598
Team Management Skills 599
Conflict Management Skills 599
Negotiation Skills 604
Applications: Management Is Everyone?s Business 607
Concluding Thoughts 608
Summary 609
Discussion Questions 609
Management Minicase 14.1: Are Teams Worth It? 610
Management Minicase 14.2: Whole Foods: Using Teamwork as a Recipe for
Success 611
Individual/Collaborative Learning Case 14.1: Managing Rewards for Teams 613
Internet Exercise 14.1: General Motors? Saturn Division Thrives on Teamwork 614
Manager?s Checkup 14.1: What Is Your Primary Conflict-Handling Style? 614
t a b l e o f c o n t e n t s
xxxvii
Chapter 15
Managing Communication 616
Communication Challenges at High-Flying Boeing 617
The Process of Communication 618
AModel of Communication 620
Barriers to Effective Communication 622
Patterns of Organizational Communications 624
Downward Communication 624
Upward Communication 624
Horizontal Communication 625
Managing Organizational Communications 626
Face-to-Face Communication 627
Written Communication 628
Electronic Communication 630
Informal Communication 632
Communication Skills 634
Assertive Communication Skills 634
Presentation Skills 636
Nonverbal Communication Skills 638
Listening Skills 641
Applications: Management Is Everyone?s Business 643
Concluding Thoughts 644
Summary 646
Discussion Questions 646
Management Minicase 15.1: Should Employees Be Required to Communicate Only
in English? 647
Management Minicase 15.2: Actions Speak Louder than Words All around the
World 648
Individual/Collaborative Learning Case 15.1: Selecting the Most Effective Form
of
Communication 649
Internet Exercise 15.1: Whole Foods, Whole Philosophy 651
Manager?s Checkup 15.1: Listening Self-Inventory 652
Part Five Manager?s Hot Seat: Wolinsky & Williams: Teamwork 654
Part Five Integrated Case: Leadership Challenges for Bill Ford 656
PART SIX: OPERATIONS AND INFORMATION SYSTEMS
MANAGEMENT 660
Chapter 16
Management Control 662
All You Have Is Your Reputation: Control It or Lose It 663
What Is Management Control? 666
Informal and Outcome-Focused Control 667
t a b l e o f c o n t e n t s xxxviii
Formal and Process-Focused Control 668
Bureaucratic Control 668
The Balanced Scorecard 679
Formal and Outcome-Focused Control 682
Market Control 682
Financial Controls 683
Informal and Process-Focused Control 686
Clan Control 687
What Is Management Control (Revisited)? 687
People versus Systems 687
Applications: Management Is Everyone?s Business 689
Concluding Thoughts 690
Summary 691
Discussion Questions 691
Management Minicase 16.1: Standards for Quality Control: Don?t Forget the
Customer! 692
Management Minicase 16.2: Outcomes or Process? 693
Individual/Collaborative Learning Case 16.1: Profit vs. Equity: Beyond Short-
Term
Financial Performance 694
Internet Exercise 16.1: Balanced Scorecard: State of the Art 695
Chapter 17
Operations Management 696
Kaizening in Iowa 697
What Is Operations Management? 699
Three Stages of Operations 699
Planning 700
Strategic Planning 700
Acquiring Inputs 702
Materials Requirements Planning 703
Inventory 704
The Conversion Process 704
Designing the Process 705
Monitoring the Process 709
Disposition of the Product 710
Managing Quality 711
The Quality Management Approach 713
Kaizen (Continuous Improvement) and Efficiency 716
Just-in-Time Systems 718
Other Quality Management Systems 721
Applications: Management Is Everyone?s Business 722
Concluding Thoughts 723
Summary 724
Discussion Questions 724
t a b l e o f c o n t e n t s
xxxix
Management Minicase 17.1: Quality Improvement for the Small Shop 725
Management Minicase 17.2: Visualize It! 725
Individual/Collaborative Learning Case 17.1: It?s All about Variance 726
Internet Exercise 17.1: Andersen Windows 727
Chapter 18
Managing Information Systems 728
IBM Gets Connected 729
Managing Information 730
Data and Information 732
Databases and Data Warehousing 733
Data Mining 734
Information Technology 734
Equipment 736
Computer Networks 738
Software 740
Information Ethics and Security 744
Computer Ethics 744
Security 745
Information Systems 747
Operations Information Systems 747
Other Types of Information Systems 748
Management Information Systems 749
Types of Management Information Systems 749
Effect of Management Information Systems on the Firm 750
Implementing Management Information Systems 752
Applications: Management Is Everyone?s Business 753
Concluding Thoughts 755
Summary 756
Discussion Questions 757
Management Minicase 18.1: Who Wants to Pretend to Be a Millionaire? 757
Management Minicase 18.2: Data Drives Dell 759
Individual/Collaborative Learning Case 18.1: Hunting for Hackers to Help with
Hacking 760
Internet Exercise 18.1: Computer Privacy 761
Manager?s Checkup 18.1: How Effectively Do You Use Technology? 762
Part Six Manager?s Hot Seat: TechBox: Conflict Management: Hierarchies and
Personalities 763
Part Six Integrated Case: Lack of Controls at HealthSouth 765
Glossary 769
Endnotes 784
References 792
Photo Credits 812
Index 814
No other version available