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DECENZO Coastal Carolina University MARY COULTER Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Senior Acquisitions Editor: Kim Norbuta Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: Michael Fruhbeis Cover Designer: Michael Fruhbeis Cover Art: LCI Design Manager, Rights and Permissions: Hessa Albader Medial Project Manager, Production: Lisa Rinaldi Senior Media Project Manager: Denise Vaughn Full-Service Project Management: Sharon Anderson/Bookmasters, Inc. Composition: Integra Software Services Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color Text Font: 10/12 Times Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U. and other countries.
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Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Robbins, Stephen P., Fundamentals of management: essential concepts and applications / Stephen P. DeCenzo, Mary Coulter. Includes bibliographical references and index.R5643 2013 658—dc23 2011043635 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-262053-7 ISBN 13: 978-0-13-262053-6 To my wife, Laura Steve To my family who continue to help me understand what life is about, who are there through thick and thin, and who demonstrate what is good about people today.
To Terri, Mark, Meredith, Gabriella, and Natalie, thank you for making me the person I am today. Dave To Brooklynn.my sweet baby girl! Mary v This page intentionally left blank Brief Contents Part 1 Introduction 2 Chapter 1 Managers and Management 2 History Module A Brief History of Management’s Roots 21 Chapter 2 The Management Environment 28 Chapter 3 Integrative Managerial Issues 46 Part 2 Planning 70 Chapter 4 Foundations of Decision Making 70 Quantitative Module Quantitative Decision-Making Aids 94 Chapter 5 Foundations of Planning 104 Part 3 Organizing 130 Chapter 6 Organizational Structure and Design 130 Chapter 7 Managing Human Resources 160 Career Module Building Your Career 193 Chapter 8 Managing Change and Innovation 198 Part 4 Leading 220 Chapter 9 Foundations of Individual Behavior 220 Chapter 10 Understanding Groups and Managing Work Teams 248 Chapter 11 Motivating and Rewarding Employees 272 Chapter 12 Leadership and Trust 298 Chapter 13 Managing Communication and Information 326 Part 5 Controlling 346 Chapter 14 Foundations of Control 346 Chapter 15 Operations Management 368 Entrepreneurship Module Managing Entrepreneurial Ventures 392 Your Turn to Be a Manager 402 Name/Organization Index 461 Glindex (combined subject index and glossary) 465 vii This page intentionally left blank Contents A Short Note to Students xv Contemporary Approaches 26 Preface xvii Endnotes 27 About the Authors xxiii Chapter 2 The Management Part 1 Introduction 2 Environment 28 What Is the External Environment and Why Is It Important? 30 Chapter 1 Managers and Management 2 How Has the Economy Changed? 31 Who Are Managers and Where Do They Work? 4 From the Past to the Present | Omnipotent/ What Three Characteristics Do All Organizations symbolic views of management 32 Share? 4 What Role Do Demographics Play? 33 How Are Managers Different from Nonmanagerial Employees? 5 Technology and the Manager’s Job | Changing and Improving the Way Managers Manage 33 What Titles Do Managers Have? 5 How Does the External Environment Affect Right or Wrong? 5 Managers? 34 What Is Management? 6 Right or Wrong? 36 From the Past to the Present | Origins of managers/ management 7 What Is Organizational Culture and Why Is It Important? 38 What Do Managers Do? 8 What Is Organizational Culture? 38 What Are the Four Management Functions? 8 How Can Culture Be Assessed? 38 What Are Management Roles? 9 Where Does an Organization’s Culture Come From? 39 What Skills and Competencies Do Managers Need? 11 How Do Employees Learn the Culture? 40 Is the Manager’s Job Universal? 12 and the Survey Says. 40 Technology and the Manager’s Job | Is It Still How Does Organizational Culture Affect Managing When What You’re Managing Are Managers? 41 Robots? 12 How Does Culture Affect What Employees Do? 41 and the Survey Says. 14 How Does Culture Affect What Why Study Management? 15 Managers Do? 41 What Factors Are Reshaping and Redefining Review Management? 16 Chapter Summary 43 • Understanding the Chapter 43 • • Endnotes 44 Why Are Customers Important to the Manager’s Job? 16 Your Turn to Be a Manager 406 Why Is Innovation Important to the Manager’s Job? 17 Chapter 3 Integrative Managerial Review Issues 46 Chapter Summary 18 • Understanding the What Is Globalization and How Does It Affect Chapter 18 • • Endnotes 19 Organizations? 48 Your Turn to Be a Manager 402 What Does It Mean to Be “Global”? 48 What Are the Different Types of Global Organizations? 49 History Module How Do Organizations Go Global? 50 A Brief History of Managements Roots 21 What Do Managers Need to Know About Managing in a Global Organization? 51 Early Management 21 From the Past to the Present | Geert Hofstede’s Classical Approaches 22 study of cultural environments 52 Behavioral Approach 23 What Does Society Expect from Organizations Quantitative Approach 24 and Managers? 54 ix x CONTENTS How Can Organizations Demonstrate Socially How Do Nonprogrammed Decisions Differ from Responsible Actions? 54 Programmed Decisions? 82 Should Organizations Be Socially Involved? 55 How Are Problems, Types of Decisions, and and the Survey Says.
56 Organizational Level Integrated? 83 What Is Sustainability and Why Is It Important? 56 and the Survey Says. 83 What Factors Determine Ethical and Unethical What Decision-Making Conditions Do Managers Behavior? 56 Face? 83 In What Ways Can Ethics Be Viewed? 57 How Do Groups Make Decisions? 84 How Can Managers Encourage Ethical What Are the Advantages of Group Decision Behavior? 58 Making? 84 What Is Today’s Workforce Like and How Does It What Are the Disadvantages of Group Decision Affect the Way Organizations Are Managed? 59 Making? 85 What Is Workplace Diversity? 60 When Are Groups Most Effective? 85 What Types of Diversity Are Found in Right or Wrong? 86 Workplaces? 60 How Can You Improve Group Decision Right or Wrong? 61 Making? 86 How Are Organizations and Managers Adapting What Contemporary Decision-Making Issues Do to a Changing Workforce? 63 Managers Face? 87 Review How Does National Culture Affect Managers’ Chapter Summary 65 • Understanding the Decision Making? 87 Chapter 65 • Your Turn to Be a Manager 000 Why Is Creativity Important in Decision • Endnotes 67 Making? 88 Your Turn to Be a Manager 409 Review Chapter Summary 90 • Understanding the Chapter 91 • • Endnotes 91 Part 2 Planning 70 Your Turn to Be a Manager 412 Chapter 4 Foundations of Decision Making 70 Quantitative Module How Do Managers Make Decisions? 72 Quantitative Decision-Making Aids What Defines a Decision Problem? 72 Payoff Matrices 94 What Is Relevant in the Decision-Making Process? 73 Decision Trees 95 How Does the Decision Maker Weight the Criteria Break-Even Analysis 96 and Analyze Alternatives? 73 Ratio Analysis 97 What Determines the Best Choice? 74 Linear Programming 99 What Happens in Decision Implementation? 75 Queuing Theory 100 What Is the Last Step in the Decision Process? 75 Economic Order Quantity Model 101 What Common Errors Are Committed in the Endnotes 103 Decision-Making Process? 75 What Are Three Approaches Managers Can Use to Make Decisions? 77 Chapter 5 Foundations of Planning 104 What Is the Rational Model of Decision Making? 78 What Is Planning and Why Do Managers Need to Technology and the Manager’s Job | Making Better Plan? 106 Decisions with Technology 78 Why Should Managers Formally Plan? 106 From the Past to the Present | Herbert A. Simon’s What Are Some Criticisms of Formal study of satisficing 79 Planning? 107 What Is Bounded Rationality? 79 Does Formal Planning Improve Organizational What Role Does Intuition Play in Managerial Performance? 108 Decision Making? 80 What Do Managers Need to Know About Strategic What Types of Decisions and Decision-Making Management? 108 Conditions Do Managers Face? 81 What Is Strategic Management? 108 How Do Problems Differ? 81 Why Is Strategic Management Important? 108 How Does a Manager Make Programmed What Are the Steps in the Strategic Management Decisions? 81 Process? 109 CONTENTS xi What Strategies Do Managers Use? 111 What Contemporary Organizational Designs Right or Wrong? 113 Can Managers Use? 145 What Strategic Weapons Do Managers Have? 115 and the Survey Says. 148 Technology and the Manager’s Job | IT and What Are Today’s Organizational Design Strategy 116 Challenges? 149 How Do Managers Set Goals and Develop How Do You Keep Employees Connected? 149 Plans? 117 How Do Global Differences Affect Organizational What Types of Goals Do Organizations Have and Structure? 149 How Do They Set Those Goals? 117 Technology and the Manager’s Job | The Changing From the Past to the Present | Peter Drucker World of Work 149 and MBO 119 How Do You Build a Learning Organization? 150 What Types of Plans Do Managers Use and How How Can Managers Design Efficient and Effective Do They Develop Those Plans? 120 Flexible Work Arrangements? 151 and the Survey Says.
122 Review What Contemporary Planning Issues Do Managers Chapter Summary 154 • Understanding the Face? 123 Chapter 154 • Endnotes 156 How Can Managers Plan Effectively in Dynamic Your Turn to Be a Manager 420 Environments? 123 How Can Managers Use Environmental Chapter 7 Managing Human Scanning? 124 Resources 160 Review What Is the Human Resource Management Process Chapter Summary 125 • Understanding the and What Influences It? 162 Chapter 125 • • Endnotes 126 What Is the Legal Environment of HRM? 163 Your Turn to Be a Manager 416 From the Past to the Present | Hugo Munsterberg and I/O Psychology 165 How Do Managers Identify and Select Competent Employees? 166 Part 3 Organizing 130 What Is Employment Planning? 166 Chapter 6 Organizational Structure and How Do Organizations Recruit Employees? 168 Design 130 How Does a Manager Handle Layoffs? 168 What Are the Six Key Elements in Organizational How Do Managers Select Job Applicants? 169 Design? 132 How Are Employees Provided with Needed Skills What Is Work Specialization? 132 and Knowledge? 173 What Is Departmentalization?