Fundamentals NINTH EDITION GLOBAL EDITION STEPHEN P

Technology and the Manager's Job | Is It Still Managing When What You're Managing Are Robots? 38 Why Is Innovation Important to the Manager's Job? 39...

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Fundamentals

of

Management

Essential Concepts and Applications

NINTH EDITION

GLOBAL EDITION

STEPHEN P.ROBBINS San Diego State University

DAVID A. DECENZO Coastal Carolina University

MARYCOULTER Missouri State University

PEARSON Boston Amsterdam

Columbus

Indianapolis

Cape Town Dubai

New York San Francisco

London Madrid

Delhi Mexico City Säo Paulo Sydney

Milan

Hong Kong

Munich

Upper Saddle River Paris

Montreal Toronto

Seoul Singapore Taipei Tokyo

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Contents

Highlighted content indicates that it is presented via a Visual spread. Preface 17

History Module: A Brief History of Managements Roots 49

Instructor Supplements 19 Student Supplements 20 About the Authors 22 Part 1

Introduction

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Chapter 1 Managers and Management 24 Who Are Managers and Where Do They Work? 27 What Three Characteristics Do All Organizations Share? 28 How Are Managers Different from Nonmanagerial Employees? 28 What Titles Do Managers Have? 28 From the Fast to the Presen! 1588-1705-1911-Today 29 What Is Management? 30 3 WAYS TO LOOK AT WHAT MANAGERS DO 31 4 Functions Approach 31 Management Roles Approach 32 Skills and Competencies 33 Is the Manager's Job Universal? 33 And the Survey Says... 35 Why Study Management? 36 A Question of Ethics 36 What Factors Are Reshaping and Redefining Management? 37 Why Are Customers Important to the Manager's Job? 37 Technology and the Manager's Job | Is It Still Managing When What You're Managing Are Robots? 38 Why Is Innovation Important to the Manager's Job? 39 Importance of Social Media to the Manager's Job 39 Importance of Sustainability to the Manager's Job 40 Wrapping It Up... 40 Review Chapter Summary 41 • Discussion Questions 41 • Management Skill Builder] Political Skill 42 • Experiential Exercise 44 • Case Application 1—Happier Employees ->• Happier Customers = More Profit? 45 • Case Application 2— Building a Better Boss 45 • Case Application 3—Savingthe World 47 • Endnotes 48

Early Management 49 Classical Approaches 50 Behavioral Approach 51 Quantitative Approach 52 Contemporary Approaches 53 Endnotes 55 Chapter 2 The Management Environment 56 What Is the External Environment and Why Is It Important? 59 How Has the Economy Changed? 60 From the Fast to the Presen!1981-1987-1991-Today 61 What Role Do Demographics Play? 61 How Does the External Environment Affect Managers? 62 Technology and the Manager's Job | Can Technology Improve the Way Managers Manage? 63 A Question of Ethics 65 WHAT IS ORGANIZATIONAL CULTURE? 66 How Can Culture Be Described? 67 Where Does Culture Come From? 67 How Does Organizational Culture Affect Managers? 68 How Does Culture Affect What Employees Do? 68 How Does Culture Affect What Managers Do? 68 And the Survey Says... 69 Review Chapter Summary 70 • Discussion Questions 70 • Management Skill Builder\ Understanding Culture 71 » Experiential Exercise 72 • Case Application 7—China Zhongwang 73 • Case Application 2—Not Sold Out 74 • Case Application 3—Wild Ride 75 • Endnotes 75 Chapter 3 Integrative Managerial Issues What Is Globalization and How Does It Affect Organizations? 79 What Does It Mean to Be "Global"? 80 How Do Organizations Go Global? 80

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Contents

WHAT ARE THE OlFFERENT TYPES OF GLOBAL ORGANIZATIONS? 81 What Do Managers Need to Know About Managing in a Global Organization? 82 From the Fast to the Present 1970s-1980s-Today 83 What Does Society Expect from Organizations and Managers? 85 How Can Organizations Demonstrate Socially Responsible Actions? 85 Should Organizations Be Socially Involved? 86 What Is Sustainability and Why Is It Important? 87 And the Survey Says... 88 What Factors Determine Ethical and Unethical Behavior? 88 In What Ways Can Ethics Be Viewed? 89 How Can Managers Encourage Ethical Behavior? 89 What Is Today's Workforce Like and How Does It Affect the Way Organizations Are Managed? 91 What Is Workplace Diversity? 91 What Types of Diversity Are Found in Workplaces? 92 A Question of Ethics 94 How Are Organizations and Managers Adapting to a Changing Workforce? 94 Review Chapter Summary 96 • Discussion Questions 96 • Management Skill Builder | You-»Being Ethical 97 • Experiential Exercise 99 • Case Application 1—Dirty Little Secret 99 • Case Application 2—Spy Games 99 • Case Application 3—From Top to Bottom 100 • Endnotes 101 Part 2

Flanning

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Chapter 4 Foundations of Decision Making 102 How Do Managers Make Decisions? 105 What Defines a Decision Problem? 105 What Is Relevant in the Decision-Making Process? 106 How Does the Decision Maker Weight the Criteria and Analyze Alternatives? 106 What Determines the Best Choice? 108 What Happens in Decision Implementation? 108 What Is the Last Step in the Decision Process? 108 What Common Errors Are Committed in the DecisionMaking Process? 109 WHAT ARE THE 3 APPROACHES MANAGERS CAN USE TO MAKE DECISIONS? 110 Rational Model 110 Bounded Rationality 111 From the Past to the Present 1945-1978-Today 112 Intuition and Managerial Decision Making 112 Technology ahd the Manager's Job | Making Better Decisions with Technology 113

What Types of Decisions and Decision-Making Conditions Do Managers Face? 114 How Do Problems Differ? 114 How Does a Manager Make Programmed Decisions? 115 How Do Nonprogrammed Decisions Differ from Programmed Decisions? 116 And the Survey Says... 116 How Are Problems, Types of Decisions, and Organizational Level Integrated? 116 What Decision-Making Conditions Do Managers Face? 117 How Do Groups Make Decisions? 117 What Are the Advantages and Disadvantages of Group Decision Making? 117 When Are Groups Most Effective? 118 How Can You Improve Group Decision Making? 119 A Question of Ethics 119 What Contemporary Decision-Making Issues Do Managers Face? 120 How Does National Culture Affect Managers' Decision Making? 120 Why Are Creativity and Design Thinking Important in Decision Making? 121 Review Chapter Summary 124 • Discussion Questions 124 • Management Skill Builder | Being a Creative Decision Maker 125 • Experiential Exercise 127 • Case Application 1—The Business of Baseball 127 • Case Application 2—Tasting Success 128 • Case Application 3—Decision Making, Saudi Style 129 • Endnotes 130 Quantitative Module: Quantitative DecisionMaking Aids 131 Payoff Matrices 131 Decision Trees 132 Break-Even Analysis 133 Ratio Analysis 134 Linear Programming 136 Queuing Theory 138 Economic Order Quantity Model 138 Endnotes 141 Chapter 5 Foundations of Planning 142 What Is Planning and Why Do Managers Need to Plan? 145 Why Should Managers Formally Plan? 145 What Are Some Criticisms of Formal Planning and How Should Managers Respond? 146 Does Formal Planning Improve Organizational Performance? 147 What Do Managers Need to Know About Strategie Management? 147

Contents What Is Strategie Management? 148 Why Is Strategie Management Important? 148 What Are the Steps in the Strategie Management Process? 149 What Strategie Weapons Do Managers Have? 150 Technology and the Manager's Job | IT and Strategy 151 WHAT STRATEGIES DO MANAGERS USE? 152 Corporate Strategy 152 Competitive Strategy 153 * Functional Strategy 153 A Question of Ethics 155 How Do Managers Set Goals and Develop Plans? 155 What Types of Goals Do Organizations Have and How Do They Set Those Goals? 155 From the Past to the Present 1954-1960s and 1970s-Present 157 What Types of Plans Do Managers Use and How Do They Develop Those Plans? 158 And the Survey Says... 160 What Contemporary Flanning Issues Do Managers Face? 161 How Can Managers Plan Effeetively in Dynamic Environments? 161 How Can Managers Use Environmental Scanning? 162 Review Chapter Summary 163 • Discussion Questions 163 • Management Skill Builder | Being a Good Goal Setter 164 • Experiential Exercise 166 • Case Application 1—Flip Flop 166 • Case Application 2—Primark Takes on Burberry and Alexander MeQueen 167 • Case Application 3—Shifting Direetion 168 • Endnotes 169 Part 3

Organizing

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Chapter 6

Organizational Structure and Design 170 What Are the Six Key Elements in Organizational Design? 173 (1) What Is Work Specialization? 174 (2) What Is Departmentalization? 174 (3) What Are Authority and Responsibility? 176 (4) What Is Span of Control? 180 (5) How Do Centralization and Decentralization Differ? 181 A Question of Ethics 181 (6) What Is Formalization? 181 WHAT CONTINGENCY VARIABLES AFFECT STRUCTURAL CHOICE? 182 Mechanistic 0R Organic 183 Strategy -*• Structure 183 Size -» Structure 184 Technology -*• Structure 184 Environment -»Structure 184

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From the Past to the Present 1965-1967-1984-Present 185 What Are Some Common Organizational Designs? 186 What Traditional Organizational Designs Can Managers Use? 186 What Contemporary Organizational Designs Can Managers Use? 187 Andthe Survey Says... 189 What Are Today's Organizational Design Challenges? 190 How Do You Keep Employees Connected? 190 How Do Global Differences Affect Organizational Structure? 190 Technology and the Manager's Job | The Changing World of Work 191 How Do You Build a Learning Organization? 191 How Can Managers Design Efficient and Effective Flexible Work Arrangements? 192 Review Chapter Summary 195 • Discussion Questions 195 • Management Skill Builder | Increasing Your Power 196 • Experiential Exercise 198 • Case Application 1—A New Kind of Structure 198 • Case Application 2—Volunteers Work 199 • Case Application 3—You Work Where? 200 • Endnotes 201 Chapter 7 Managing Human Resources 202 What Is the Human Resource Management Process and What Influences It? 205 What Is the Legal Environment of HRM? 206 From the Past to the Present 1913-Present 208 A Question of Ethics 209 How Do Managers Identify and Select Competent Employees? 209 1 What Is Employment Flanning? 209 2A How Do Organizations Recruit Employees? 211 2B How Does a Manager Handle Layoffs? 212 3 How Do Managers Select Job Applicants? 212 How Are Employees Provided with Needed Skills and Knowledge? 216 How Are New Hires Introduced to the Organization? 216 Technology and the Manager's Job | Social and Digital HR 217 What Is Employee Training? 217 KEEPING GREAT PEOPLE: 2 WAYS ORGANIZATIONS DOTHIS 220 Performance Management System 220 Should people be compared to one another or against a set of Standards? 220 • Traditional manager-employee Perfor­ mance evaluation systems may be outdated 222 • When employee's Performance is not up to par 222 Compensating Employees: Pay and Benefits 222 Compensatio«—Pay for doing a job 222 • Compensation— Employees benefits 224

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Contents

What Contemporary HRM Issues Face Managers? 224 How Can Managers Manage Downsizing? 224 And the Survey Says... 225 How Can Workforce Diversity Be Managed? 225 What Is Sexual Harassment? 226 What Is Workplace Spirituality? 227 How and Why Are Organizations Controlling HR Costs? 229 Review Chapter Summary 231 • Discussion Questions 231 • Management Skill Builder | Being An Effective Interviewer 232 • Experiential Exercise 234 • Case Application 1— Stopping Traffic 234 • Case Application 2—Resume Regrets 235 • Case Application 3—HRM in the Hong Kong Police Force 236 • Endnotes 237 Career Module: Building Your Career

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What Was Career Development Like, Historically? 238 What Is Career Development Like, Now? 238 How Can I Have a Successful Career? 239 Assess Your Personal Strengths and Weaknesses 239 Identify Market Opportunities 239 Take Responsibility for Managing Your Own Career 239 Develop Your Interpersonal Skills 239 Practice Makes Perfect 239 Stay Up to Date 240 Network 240 Stay Visible 240 Seek a Mentor 240 Leverage Your Competitive Advantage 240 Don't Shun Risks 240 It's OK to Change Jobs 241 Opportunities, Preparation, and Luck = Success 241 Chapter 8 Managing Change and Innovation 242 What Is Change and How Do Managers Deal with It? 245 Why Do Organizations Need to Change? 246 Who Initiales Organizational Change? 247 How Does Organizational Change Happen? 247 From the Fast to the Present 1943-1944-1947-Present 248 How Do Managers Manage Resistance to Change? 250 Why Do People Resist Organizational Change? 251 And the Survey Says... 251 What Are Some Techniques for Reducing Resistance to Organizational Change? 251 WHAT REACTION DO EMPLOYEES HAVE TO ORGANIZATIONAL CHANGE? 252 What Is Stress? 252 What are the Symptoms of stress? 253 What Causes Stress? 253 Job related factors 253 • Personal factors 254 A Question of Ethics 254 How Can Stress Be Reduced? 255

How Can Managers Encourage Innovation in an Organization? 256 How Are Creativity and Innovation Related? 257 What's Involved in Innovation? 257 How Can a Manager Poster Innovation? 258 How Does Design Thinking Influenae Innovation? 260 Review Chapter Summary 261 • Discussion Questions 261 • Management Skill Builder \ Controlling Workplace Stress 262 • Experiential Exercise 264 • Case Application 7—The Next Big Thing 264 • Case Application 2—GM's Latest Model 265 • Case Application 3—Stress Kills 266 • Endnotes 267 Part 4

Leading

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Chapter 9

Foundations of Individual Behavior 268 What are the Focus and Goals of Organizational Behavior? 271 What Is the Focus of OB? 272 What Are the Goals of Organizational Behavior? 272 What Role Do Attitudes Play in Job Performance? 273 What Are the Three Components of an Attitüde? 273 What Attitudes Might Employees Hold? 273 Do Individuais' Attitudes and Behaviors Need to Be Consistent? 274 What Is Cognitive Dissonance Theory? 274 And the Survey Says... 275 How Can an Understanding of Attitudes Help Managers Be More Effective? 275 What Do Managers Need to Know About Personality? 276 How Can We Best Describe Personality? 276 Can Personality Traits Predict Practical Work-Related Behaviors? 278 A Question of Ethics 279 How Do We Match Personalities and Jobs? 280 Do Personality Attributes Differ Across Cultures? 281 How Can an Understanding of Personality Help Managers Be More Effective? 281 What Is Perception and What Influences It? 282 What Influences Perception? 282 How Do Managers Judge Employees? 283 How Can an Understanding of Perception Help Managers Be More Effective? 285 From the Past to the Present 1927-1971-Present 263 HOW DO LEARNING THEORIES EXPLAIN BEHAVIOR? 285 OperantConditioning 28G Social Learning Theory 287 Shaping Behavior 287 How Can an Understanding of Learning Help Managers Be More Effective? 288

Contents What Contemporary OB Issues Face Managers? 289 How Do Generational Differences Affect the Workplace? 289 How Do Managers Deal with Negative Behavior in the Workplace? 290 Review Chapter Summary 291 • Discussion Questions 292 • Management Skill Builder \ Understanding Employee Emotions 292 • Management Skill Builder] Understanding Employee Personality 293 • Experiential Exercise 296 • Case Application 1—Great Place to Work 297 • Case Application 2—Odd Couples 297 • Case Application 3— Employees First 298 • Endnotes 299 Chapter 10

Understanding Croups and Managing Work Teams 300 What Is a Group and What Stages of Development Do Groups Go Through? 303 What Is a Group? 303 What Are the Stages of Group Development? 304 . And the Survey Says... 304 A Question of Ethics 305 5 MAJOR CONCEPTS OF GROUP BEHAVIOR 306 Roles 306 Norms 306 Conformity 307 Status Systems 307 Group Size 308 Group Cohesiveness 308 From the Past to the Present 1951-Today 310 How are Groups Turned into Effective Teams? 310 Are Work Groups and Work Teams the Same? 311 What Are the Different Types of Work Teams? 311 Technology and the Manager's Job | IT and Teams 313 What Makes a Team Effective? 313 How Can a Manager Shape Team Behavior? 316 What Current Issues Do Managers Face in Managing Teams? 317 What's Involved with Managing Global Teams? 317 When Are Teams Not the Answer? 319 Review Chapter Summary 320 • Discussion Questions 320 • Management Skill Builder \ Understanding How Teams Work 321 • Management Skill Builder \ Understanding Conflict Resolution 323 • Experiential Exercise 325 • Case Application 7—Teaming Up for Take Off 325 • Case Application 2—Toyota's Teams 326 • Case Application 3— Intel Inside...and FarAway 326 • Endnotes 327 Chapter 11

Motivating and Rewarding Employees 328 What Is Motivation? 331 And the Survey Says... 331

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4 EARLYTHEORIES OF MOTIVATION 332 Maslov/s Hierarchy of NeedsTheory 310 McGregor's Theory X and Theory Y 311 Herzberg'sTwo-FactorTheory 311 McCIelland's Three-Needs Theory 313 How Do the Contemporary Theories Explain Motivation? 336 What Is Goal-Setting Theory? 336 From the Past to the Present -»1959-1977-Today 337 How Does Job Design Influence Motivation? 338 What Is Equity Theory? 339 A Question of Ethics 340 How Does Expectancy Theory Explain Motivation? 341 How Can We Integrate Contemporary Motivation Theories? 342 What Current Motivation Issues do Managers Face? 343 How Can Managers Motivate Employees When the Economy Stinks? 344 How Does Country Culture Affect Motivation Efforts? 344 How Can Managers Motivate Unique Groups of Workers? 345 How Can Managers Design Appropriate Rewards Programs? 346 Review Chapter Summary 349 • Discussion Questions 349 • Management Skill Builder] Being a Good Motivator 350 • Experiential Exercise 353 • Case Application 1—Passionate Pursuits 353 • Case Application 2—Best Practices at Best Buy 354 • Case Application 3—Searching For? 355 • Endnotes 355

Chapter 12 Leadership and Trust 356 Who Are Leaders, and What Is Leadership? 359 From the Past to the Present 1951-1960-Today 359 WHAT DO EARLY LEADERSHIP THEORIESTELL US ABOUT LEADERSHIP? 360 The Leader: WhatTraits Do Leaders Have? 360 The Behaviors: What Behaviors Do Leaders Exhibit? 362 University of Iowa studies 362 Ohio State studies 362 University of Michigan studies 362 Managerial Grid 362 What Do The Contingency Theories of Leadership Teil Us? 363 What Was the First Comprehensive Contingency Model? 363 How Do Followers' Willingness and Ability Influence Leaders? 364 And the Survey Says... 366 How Participative Should a Leader Be? 366 How Do Leaders Help Followers? 367

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Contents

What Is Leadership Like Today? 368 What Do the Four Contemporary Views of Leadership Teil Us? 368 A Question of Ethics 371 What Issues Do Today's Leaders Face? 371 Technology and the Manager s Job | Virtual Leadership 372 Why Is Trust the Essence of Leadership? 375 A Final Thought Regarding Leadership 376 Review Chapter Summary 377 • Discussion Questions 378 • Management Skill Builder | Being a Good Leader 378 • Experiential Exercise 380 • Case Application 7— Growing Leaders 380 • Case Application 2—Serving Up Leaders 381 • Case Application 3—Leadership Legacy 382 • Endnotes 383 Chapter 13

Managing Communication and Information 384 How Do Managers Communicate Effectively? 387 How Does the Communication Process Work? 387 Are Written Communications More Effective Than Verbal Ones? 389 Is the Grapevine an Effective Way to Communicate? 389 How Do Nonverbal Cues Affect Communication? 389 From the Fast to the Present -> 1953-2009-Today 390 What Barriers Keep Communication from Being Effective? 391 How Can Managers Overcome Communication Barriers? 393 A Question of Ethics 394 TECHNOLOGY AND MANAGERIAL COMMUNICATION 395 Networked Communication 395 Networked communication applications 396 Wireless Communication 397 Wireless communication applications 397 Technology and the Managers Job | FYEO: Decoding Communication Jargon 398 What Communication Issues Do Managers Face Today? 398 How Do We Manage Communication in an Internet World? 398 And the Survey Says... 399 How Does Knowledge Management Affect Communication? 399 What's Involved with Managing the Organization's Knowledge Resources? 400 What Role Does Communication Play in Customer Service? 400 How Can We Get Employee Input and Why Should We? 401 Why Should Managers Be Concerned with Communicating Ethically? 402

Review Chapter Summary 403 • Discussion Questions 403 • Management Skill Builder| Being a Good Listener 404 • Experiential Exercise 406 • Case Application 7—MXit and Facebook in South Africa 406 • Case Application 2— Banning E-Mail 407 • Case Application 3— Pizza, Politics, and Papa 408 • Endnotes 409 Part 5

Controlling

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Chapter 14 Foundations of Control 410 What Is Control and Why Is It Important? 413 What Is Control? 413 Why Is Control Important? 413 A Question of Ethics 413 What Takes Place as Managers Control? 415 1 What Is Measuring? 415 From the Pastto the Present 1911-1913-1979-Today 417 2 How Do Managers Compare Actual Performance to Planned Goals? 418 3 What Managerial Action Can Be Taken? 419 And the Survey Says... 419 What Should Managers Control? 419 When Does Control Take Place? 420 KEEPING TRACK: WHAT GETS CONTROLLED7 421 Keeping Track of Organization's Finances 421 ?! Keeping Track of Organization's Information 422 Keeping Track of Employee Performance 423 Keeping Track Using a Balanced Scorecard Approach 424 What Contemporary Control Issues Do Managers Confront? 425 Do Controls Need to Be Adjusted for Cultural Differences? 425 Technology and the Manager s Job | Monitoring Employees 426 What Challenges Do Managers Face in Controlling the Workplace? 427 Review Chapter Summary 431 • Discussion Questions 431 • Management Skill Builder | Being a Good Disciplinarian 432 • Management Skill Builder] Providing Good Feedback 434 • Experiential Exercise 435 • Case Application 7— Top Secret 436 • Case Application 2— Deepwater in Deep Trouble 437 • Case Application 3— Baggage Blunders and Wonders 438 » Endnotes 439 Chapter 15 Operations Management 440 Why Is Operations Management Important to Organizations? 443 What Is Operations Management? 443 1 How Do Service and Manufacturing Firms Differ? 444

Contents 2 How Do Businesses Improve Productivity? 444 From the Past to the Present -> 1950-1981/1982-Today 446 3 What Role Does Operations Management Play in a Company's Strategy? 446 WHAT IS VALUE CHAIN MANAGEMENT AND WHY IS IT IMPORTANT? 447 What Is Value Chain Management? 447 Who has power in the value chain? 448 Goals of value chain Management 449 How Does Value Chain Management Benefit Businesses? 449 How Is Value Chain Management Done? 450 What Are the Requirements for Successful Value Chain Management? 450 And the Survey Says... 451 What Are the Obstacles to Value Chain Management? 453 A Question of Ethics 454 What Contemporary Issues Do Managers Face in Managing Operations? 454 1 What Role Does Technology Play in Operations Management? 455 Technology and the Manager s Job | Welcome to the Factory of the Future! 455 2 How Do Managers Control Quality? 456 How Are Projects Managed? 458 Review Chapter Summary 464 • Discussion Questions 464 • Management Skill Builder | Being a Good Project Manager 465 • Experiential Exercise 466 • Case Application 1—Tragedy in Fashion 467 • Case Application 2— Dreamliner Nightmare 468 • Case Application 3—Stirring Things Up 469 • Endnotes 470

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Entrepreneurship Module: Managing Entrepreneurial Ventures 471 What Is Entrepreneurship? 471 Who's Starting Entrepreneurial Ventures? 471 What Do Entrepreneurs Do? 472 What Planning Do Entrepreneurs Need to Do? 472 What's in a Füll Business Plan? 473 What Issues Are Involved in Organizing an Entrepreneurial Venture? 474 What Are the Legal Forms of Organization for Entrepreneurial Ventures? 474 What Type of Organizational Structure Should Entrepreneurial Ventures Use? 474 What Human Resource Management (HRM) Issues Do Entrepreneurs Face? 475 What Issues Do Entrepreneurs Face in Leading an Entrepreneurial Venture? 475 What Type of Personality Do Entrepreneurs Have? 476 How Can Entrepreneurs Motivate Employees? 476 How Can Entrepreneurs Be Leaders? 477 What Controlling Issues Do Entrepreneurs Face? 477 How Is Growth Managed? 478 How Are Downturns Managed? 478 What's Involved with Exiting the Venture? 478 Why Is It Important to Think About Managing Personal Challenges as an Entrepreneur? 478 Endnotes 479

Glossary 480 Index 486