Exploring Management

1 Managers and the Management Process 1

1.1 Explain What It Means to Be a Manager 2

Career Readiness is an Ongoing Personal Responsibility 2

Organizations Have Different Types and Levels of Managers 3

Accountability Is a Foundation of Managerial Performance 5

Effective Managers Help Others Achieve High Performance and Satisfaction 5

Managers Are Coaches, Coordinators, and Supporters 6

1.2 Describe What Managers Do and the Skills They Use 8

Managers Plan, Organize, Lead, and Control 8

Managers Perform Informational, Interpersonal, and Decisional Roles 10

Managers Use Networking and Social Capital to Pursue Action Agendas 11

Managers Use Technical, Human, and Conceptual Skills 11

Managers Thrive on Lifelong Learning 12

1.3 Discuss the Implications of Important Career Trends and Issues 14

Globalization Has Changed Societies and the World of Work 15

Failures of Ethics and Corporate Governance Are Troublesome 15

Respecting Diversity and Eliminating Discrimination Are Top Social Priorities 16

Talent Is a “Must Have” in a Free-Agent, Gig, and On-Demand Economy 17

Technology and Analytics Are Driving a Smart Workforce 18

Self-Management Skills Are Essential for Career Success 19

Careers Must be Managed Strategically and not Left to Chance 19

2 Management Learning 24

2.1 Explain the Lessons of the Classical Management Approaches 25

Taylor’s Scientific Management Sought Efficiency in Job Performance 25

Weber’s Bureaucratic Organization Is Supposed to Be Efficient and Fair 27

Fayol’s Administrative Principles Describe Managerial Duties and Practices 28

2.2 Describe the Contributions of the Behavioral Management Approaches 29

Spaulding Espoused Respect for People and Belief in Community 29

Follett Viewed Organizations as Communities of Cooperative Action 30

The Hawthorne Studies Focused Attention on the Human Side of Organizations 32

Maslow Described How Human Needs Influence Motivation 32

McGregor Believed Managerial Assumptions Create Self-Fulfilling Prophecies 33

Argyris Suggested That Workers Treated As Adults Will Be More Productive 34

2.3 Identify the Foundations of Modern Management Thinking 36

Managers Use Quantitative Analysis and Tools to Solve Complex Problems 36

Organizations Are Open Systems That Interact with Their Environments 37

Contingency Thinking Holds That There Is No One Best Way to Manage 39

Quality Management Focuses Attention on Continuous Improvement 40

Evidence-Based Management Seeks Hard Facts About What Really Works 40

3 Ethics and Social Responsibility 44

3.1 Discuss Ethical Dilemmas and Common Ethics Issues in the Workplace 45

Ethical Behavior Is Values Driven 45

Views Differ on What Constitutes Moral Behavior 46

What Is Considered Ethical Can Vary Across Cultures 48

Ethical Dilemmas Are Tests of Personal Ethics and Values 50

It Can be Tempting to Rationalize Unethical Behavior 51

3.2 Describe Ways to Maintain High Standards of Ethical Conduct 52

Personal Character Influences Ethical Decision Making 52

Managers as Positive Role Models Can Inspire Ethical Conduct 53

Training in Ethical Decision Making Can Improve Ethical Conduct 54

Protection of Whistleblowers Can Encourage Ethical Conduct 54

Formal Codes of Ethics Set Standards for Ethical Conduct 55

3.3 Explain What We Know About the Social Responsibilities of Organizations 57

Social Responsibility Is an Organization’s Obligation to Best Serve Society 57

Perspectives Differ on the Importance of Corporate Social Responsibility 58

Shared Value Integrates Corporate Social Responsibility into Mission and Strategy 58

Social Businesses and Social Entrepreneurs Try to Solve Social Problems 60

Social Responsibility Audits Measure the Social Performance of Organizations 60

Sustainability Is an Important Social Responsibility Goal 61

4 Managers as Decision Makers 66

4.1 Explain How Managers Use Information to Solve Problems 67

Managers Use Technological, Informational, and Analytical Competencies to Solve Problems 67

Managers Deal with Problems Posing Threats and Offering Opportunities 68

Managers Can Be Problem Avoiders, Problem Solvers, or Problem Seekers 68

Managers Make Programmed and Nonprogrammed Decisions 69

Managers Use Both Systematic and Intuitive Thinking 70

Managers Use Different Cognitive Styles to Process Information for Decision Making 70

Managers Make Decisions Under Conditions of Certainty, Risk, and Uncertainty 71

4.2 Identify Five Steps in the Decision-Making Process 73

Step 1—Identify and Define the Problem 74

Step 2—Generate and Evaluate Alternative Courses of Action 74

Step 3—Decide on a Preferred Course of Action 75

Step 4—Take Action to Implement the Decision 76

Step 5—Evaluate Results 77

All Steps - Double Check Your Ethical Reasoning 77

4.3 Discuss Current Issues in Managerial Decision Making 79

Creativity Infuses New Ideas Into Decision Making 79

Group Decision Making Has Advantages and Disadvantages 80

Judgmental Heuristics and Other Biases Cause Decision-Making Errors 80

Analytics and Big Data Are Important Decision Making Tools 82

Managers Should Prepare for Crisis Decision Making 83

5 Plans and Planning Techniques 87

5.1 Explain How and Why Managers Use the Planning Process 88

Planning Is One of the Four Functions of Management 88

Planning Sets Objectives and Identifies How to Achieve Them 89

Planning Improves Focus and Flexibility 90

Planning Improves Action Orientation 90

Planning Improves Coordination and Control 90

Planning Improves Time Management 91

5.2 Identify the Types of Plans Used by Managers 92

Managers Use Short-Range and Long-Range Plans 92

Managers Use Strategic and Operational Plans 93

Organizational Policies and Procedures Are Plans 93

Budgets Are Plans That Commit Resources to Activities 94

5.3 Describe Useful Planning Tools and Techniques 96

Forecasting Tries to Predict the Future 96

Contingency Planning Creates Backup Plans for When Things Go Wrong 97

Scenario Planning Crafts Plans for Alternative Future Conditions 98

Benchmarking Identifies Best Practices Used by Others 99

Goal Setting Aligns Plans and Activities 99

Goals Can Have Downsides and Must Be Well Managed 100

Participatory Planning Builds Implementation Capacities 100

6 Controls and Control Systems 105

6.1 Identify How and Why Managers Use the Control Process 106

Controlling Is One of the Four Functions of Management 106

Step 1—Control Begins with Objectives and Standards 107

Step 2—Control Measures Actual Performance 108

Step 3—Control Compares Results with Objectives and Standards 109

Step 4—Control Takes Corrective Action as Needed 109

6.2 Explain the Types of Controls Used by Managers 110

Managers Use Feedforward, Concurrent, and Feedback Controls 111

Managers Use Both Internal and External Controls 111

Managing by Objectives Helps Integrate Planning and Controlling 112

6.3 Identify Useful Control Tools and Techniques 114

Project Management Keeps Complex Tasks on Target and Under Control 115

Quality Control is a Foundation of Good Management 116

Inventory Controls Help Save Costs 117

Breakeven Analysis Shows Where Revenues Will Equal Costs 118

Financial Ratios Measure Key Areas of Financial Performance 119

Balanced Scorecards Keep the Focus on Strategic Control 120

7 Strategy and Strategic Management 124

7.1 Explain the Types of Strategies Used by Organizations 125

Strategy Is a Comprehensive Plan for Achieving Competitive Advantage 126

Organizations Use Corporate, Business, and Functional Strategies 127

Growth Strategies Focus on Expansion 127

Restructuring and Divestiture Strategies Focus on Consolidation 128

Global Strategies Focus on International Business Opportunities 129

Cooperation Strategies Focus on Alliances and Partnerships 130

E-Business Strategies Use the Web and Apps for Business Success 131

7.2 Describe How Managers Formulate and Implement Strategies 133

The Strategic Management Process Analyzes, Formulates, and Implements Strategies 133

SWOT Analysis Identifies Strengths, Weaknesses, Opportunities, and Threats 134

Porter’s Five Forces Model Analyzes Industry Attractiveness 135

Porter’s Competitive Strategies Model Identifies Business or Product Strategies 136

Portfolio Planning Examines Strategies Across Multiple Businesses or Products 137

Strategic Leadership Ensures Strategy Implementation and Control 138

8 Organization Structure and Design 142

8.1 Explain Organizing as a Managerial Responsibility 143

Organizing Is One of the Management Functions 143

Organization Charts Describe Formal Structures of Organizations 144

Organizations Also Have Informal Structures 144

Informal Structures Have Good Points and Bad Points 145

8.2 Identify the Most Common Organization Structures 146

Functional Structures Group Together People Using Similar Skills 147

Divisional Structures Group Together People by Products, Customers, or Locations 148

Matrix Structures Combine the Functional and Divisional Structures 149

Team Structures Make Extensive Use of Permanent and Temporary Teams 150

Network Structures are Built Around Strategic Alliances and Outsourcing 152

8.3 Discuss Current Trends in Organizational Design 154

Organizations Are Becoming Flatter and Using Fewer Levels of Management 154

Organizations Are Increasing Decentralization, Delegation, and Empowerment 154

Organizations Are Becoming More Horizontal and Adaptive 156

Organizations Are Using More Alternative Work Schedules 157

Organizations Are Adjusting to Remote Working 158

Organizations Are Reconfiguring with New Virtual and Physical Architectures 159

9 Organizational Cultures, Innovation, and Change 163

9.1 Explain the Nature of Organizational Culture 164

Organizational Culture Is the Personality of the Organization 164

Organizational Culture Shapes Behavior and Influences Performance 164

Not All Organizational Cultures Are Alike 165

The Observable Culture Is What You See and Hear as an Employee or Customer 166

The Core Culture Contains the Underlying Values of the Organization 167

Value-Based Management Supports a Strong Organizational Culture 168

9.2 Discuss How Organizations Support and Achieve Innovation 170

Organizations Pursue Process, Product, and Business Model Innovations 170

Green Innovations Advance the Goals of Sustainability 170

Social Innovations Seek Solutions to Important Societal Problems 171

Commercializing Innovation Turns New Ideas into Salable Products 171

Disruptive Innovation Uses New Technologies to Displace Existing Practices 172

Innovative Organizations Share Many Common Characteristics 173

9.3 Describe How Managers Lead the Processes of Organizational Change 174

Organizations and Teams Need Change Leaders 175

Organizational Change Can Be Transformational or Incremental 175

Planned Change Includes Unfreezing, Changing, and Refreezing Phases 176

Times of Complexity Require Improvisation during the Change Process 177

Managers Use Force-Coercion, Rational Persuasion, and Shared Power Change Strategies 178

Change Leaders Identify and Deal Positively with Resistance to Change 179

10 Human Resource Management 184

10.1 Describe the Purpose and Legal Context of Human Resource Management 185

Human Resource Management Attracts, Develops, and Maintains a Talented Workforce 185

Strategic Human Resource Management Aligns Human Capital with Organizational Strategies 186

Laws Protect Against Employment Discrimination 186

Laws Can’t Guarantee That Employment Discrimination Will Never Happen 187

10.2 Explain Essential Human Resource Management Practices 190

Psychological Contracts Set the Exchange of Value Between Individuals and Organizations 190

Recruitment Attracts Qualified Job Applicants 191

Selection Makes Hiring Decisions 192

Onboarding Introduces New Hires to the Organization 193

Training Develops Employee Skills and Capabilities 193

Performance Reviews Assess Work Accomplishments 194

Career Development Provides for Retention and Career Paths 195

10.3 Summarize Current Issues in Human Resource Management 196

Job Flexibility and Work–Life Balance are Top Priorities for Job Seekers 197

More People Are Working as Independent Contractors and Contingency Workers 197

Compensation Plans Influence Recruitment and Retention 197

Fringe Benefits Are an Important Part of Compensation 199

Labor Relations and Collective Bargaining Are Closely Governed by Law 199

11 Leadership 204

11.1 Describe the Foundations of Effective Leadership 205

Leadership Is One of the Four Functions of Management 205

Leaders Use Positioin and Personal Power to Achieve Influence 206

Leaders Bring Vision to Teams and Organizations 207

Leaders Display Different Traits in the Quest for Effectiveness 208

Leaders Display Different Styles in the Quest for Effectiveness 209

11.2 Summarize Insights of the Contingency Leadership Theories 211

Fiedler’s Contingency Model Matches Leadership Styles with Situational Demands 211

The Hersey-Blanchard Model Matches Leadership Styles with Followers’ Readiness to Perform 212

House’s Path-Goal Theory Matches Leadership Styles with Task and Follower Characteristics 213

Leader–Member Exchange Theory Describes How Leaders Treat In-Group and Out-Group Followers 213

The Vroom-Jago Model Describes How Leaders UseAlternative Decision-Making Methods 214

11.3 Discuss Current Issues and Directions in Leadership Development 216

Transformational Leaders Inspire Enthusiasm and High Performance 216

Emotionally Intelligent Leaders Handle Emotions and Relationships Well 218

Interactive Leaders Emphasize Communication, Listening, and Participation 218

Moral Leaders Build Trust Through Personal Integrity 220

Servant Leaders are Follower Centered, Empowering, and Authentic 221

Virtual Leaders of Remote Teams Thrive on Strong Task Skills 222

Leadership Begins with “Good Old-Fashioned” Hard Work 222

12 Individual Behavior 226

12.1 Describe How Perceptions Influence Individual Behavior 227

Perception Filters Information Received From Our Environment 227

Perceptual Distortions Can Hide Individual Differences 227

Perception Can Cause Attribution Errors 229

Impression Management Influences How Others Perceive Us 229

12.2 Contrast How Different Personalities Influence Individual Behavior 230

The Big Five Personality Traits Describe Important Individual Differences 231

The Myers–Briggs Type Indicator Is a Popular Approach to Personality Assessment 232

Personalities Vary on Personal Conception Traits and Narcissism 233

People with Type A Personalities Tend to Stress Themselves 234

12.3 Explain How Attitudes, Emotions, and Moods Influence Individual Behavior 237

Attitudes Predispose People to Act in Certain Ways 237

Job Satisfaction Influences Work Behavior and Outcomes 238

Emotions and Moods Influence Behavior 239

13 Motivation 244

13.1 Describe How Human Needs Influence Motivation to Work 245

Maslow Describes a Hierarchy of Needs Topped by Self-Actualization 245

Alderfer’s ERG Theory Discusses Existence, Relatedness, and Growth Needs 246

McClelland Identifies Acquired Needs for Achievement, Power, and Affiliation 247

Herzberg’s Two-Factor Theory Focuses on Higher-Order Need Satisfaction 248

The Core Characteristics Model Integrates Motivation and Job Design 249

13.2 Identify How Thoughts and Decisions Affect Motivation to Work 251

Equity Theory Explains How Social Comparisons Motivate Individual Behavior 252

Expectancy Theory Focuses on Individual Decisions to Work Hard, or Not 253

Goal-Setting Theory Shows That the Right Goals Can Be Motivating 254

13.3 Explain How Reinforcement Influences Motivation to Work 256

Operant Conditioning Influences Behavior by Controlling Its Consequences 257

Positive Reinforcement Connects Desirable Behavior with Pleasant Consequences 258

Punishment Connects Undesirable Behavior with Unpleasant Consequences 259

14 Teams and Teamwork 263

14.1 Discuss the Importance of Teams and Teamwork 264

Teams Offer Synergy and Other Benefits 264

Teams Can Suffer from Performance Problems 265

Organizations Are Networks of Formal Teams and Informal Groups 265

Organizations Use Committees, Task Forces, and Cross-Functional Teams 266

Technology Has Mainstreamed Use of Virtual Teams 266

Self-Managing Teams Are a Form of Job Enrichment for Groups 268

14.2 Identify the Building Blocks of Successful Teamwork 270

Teams Need the Right Members to Be Effective 271

Teams Need the Right Setting and Size to Be Effective 271

Teams Need the Right Processes to Be Effective 272

Teams Need to Master Different Stages of Development 272

Team Performance Is Influenced by Norms 274

Team Performance Is Influenced by Cohesiveness 275

Team Performance Is Influenced by Communication Networks 276

Team Performance Benefits from Shared Leadership 277

14.3 Discuss How Managers Create and Lead High-Performance Teams 279

Team Building Can Improve Teamwork and Performance 279

Teams Benefit When They Use the Right Decision Methods 279

Teams Suffer When Groupthink Leads to Bad Decisions 281

Teams Benefit When Conflicts Are Well Managed 281

15 Communication 286

15.1 Explain the Nature of Communication and What Makes It Effective 287

Communication Helps to Build Social Capital 287

The Communication Process Has Lots of Room for Errors 287

Communication Is Persuasive When the Receiver Acts as the Sender Intends 289

15.2 Identify the Major Barriers to Effective Communication 291

Poor Use of Channels Makes It Difficult to Communicate Effectively 292

Poor Written or Oral Expression Makes It Difficult to Communicate Effectively 292

Failure to Spot Nonverbal Signals Makes It Difficult to Communicate Effectively 293

Information Filtering Makes It Difficult to Communicate Effectively 294

Overloads and Distractions Make It Difficult to Communicate Effectively 295

15.3 Discuss Ways to Improve Communication with People at Work 296

Active Listening Helps Others to Say What They Really Mean 296

Constructive Feedback Is Specific, Timely, and Relevant 297

Office Designs Can Encourage Interaction and Communication 297

Transparency and Openness Build Trust in Communication 299

Appropriate Online Behavior Is a Communication Essential 299

Sensitivity and Etiquette Improve Cross-Cultural Communication 300

16 Diversity and Global Cultures 304

16.1 Discuss What We Need to Know About Diversity in the Workplace 305

Inclusion Drives a Business Case for Diversity 305

Multicultural Organizations Value and Support Diversity 306

Diversity Bias Exists in Many Forms and Situations 306

Organizational Subcultures Create Diversity Challenges 308

Managing Diversity Is a Leadership Priority 309

16.2 Explain What We Should Know About Diversity Among Global Cultures 311

Culture Shock Is Discomfort in Cross-Cultural Situations 311

Cultural Intelligence Is an Ability to Adapt to Different Cultures 312

The “Silent” Languages of Cultures Include Context, Time, and Space 313

Cultural Tightness and Looseness Varies Around the World 314

Hofstede’s Model Identifies Value Differences Among National Cultures 316

Intercultural Competencies Are Essential Career Skills 317

17 Globalization and International Business 321

17.1 Discuss How Globalization Affects International Business 322

Globalization Increases Interdependence of the World’s Economies 322

Businesses Go Global for Many Reasons 324

Businesses Go Global in Different Ways 324

Legal Systems and Economic Nationalism Pose International Business Challenges 325

Regional Economic Alliances Influence International Business Dealings 326

17.2 Explain the Challenges and Controversies Facing Global Corporations 329

Global Corporations Have Extensive Operations in Many Countries 329

The Actions of Global Corporations Can Be Controversial 329

Managers of Global Corporations Face Ethics Challenges 330

The Management Process is Complicated in Global Corporations 332

18 Entrepreneurship and Small Business 337

18.1 Describe Entrepreneurship and the Characteristics of Entrepreneurs 338

Entrepreneurs Are Risk-Takers Who Spot and Pursue pportunities 338

Entrepreneurs Face Risks of Failure in Their Drives to Succeed 340

Entrepreneurs Often Share Similar Characteristics and Backgrounds 340

Entrepreneurs Often Share Similar Personality Traits 341

Women and Minority Entrepreneurs Are Growing in Numbers 342

Social Entrepreneurs Seek Novel Solutions to Pressing Social Problems 343

18.2 Discuss the Nature of Small Businesses and How to Start One 345

Small Businesses Are Mainstays of the Economy 346

Small Businesses Must Master Three Life-Cycle Stages 346

Family-Owned Businesses Face Unique Challenges 346

Many Small Businesses Fail Within 5 Years 347

Assistance Is Available to Help Small Businesses to Get Started 348

A Small Business Should Start with a Sound Business Plan 349

There Are Different Forms of Small Business Ownership 349

There Are Different Ways of Financing a Small Business 351

Skill-Building Portfolio / Cases For Critical Thinking / Test Prep Answers / Glossary / Endnotes / Name Index / Organization Index / Subject Index