LEARNSMART ADVANTAGE WORKS A B C D 30.7% A B C D earn B’s *Study: 690 students / 6 institutions 19.5% Without LearnSmart Over 20% more students Pass Rate - 70% pass the class with LearnSmart *A&P Research Study Without LearnSmart Pass Rate - 57% 100% – 80% – – Extremely More than 60% – Very of all students agreed 60% – LearnSmart was a 40% – – Moderately very or extremely 20% – Jan - Dec 2011 Jan - Mar 2012 – Slightly helpful learning tool 0 – – Not at all *Based on 750,000 student survey responses Jan–Dec 2011 Jan–Mar 2012 http://bit.ly/LS4Apple http://bit.ly/LS4Droid > AVAILABLE ON-THE-GO How do you rank against your peers? What you know (green) and what you still need to review (yellow), based on your answers. Let’s see how confident you are on the questions. COMPARE AND CHOOSE WHAT’S RIGHT FOR YOU BOOK LEARNSMART ASSIGNMENTS LearnSmart, assignments, and SmartBook—all in one digital product for maximum savings! Pop the pages into your own binder or carry just the pages Looseleaf you need. The #1 Student Choice! Bound Book The first and only book that adapts to you! Access Code The smartest way to get from Access Code a B to an A. Save some green and some trees! eBook Check with your instructor about a custom option for your course. > Buy directly from the source at www. Essentials of Contemporary Management Sixth Edition Gareth R. George Rice University ESSENTIALS OF CONTEMPORARY MANAGEMENT, SIXTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw- Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2011, and 2009. 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 Education, 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 out- side the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 ISBN 978-0-07-786253-4 MHID 0-07-786253-8 Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Michael Ablassmeir Executive Director of Development: Ann Torbert Senior Development Editor: Trina Hauger Marketing Manager : Elizabeth Trepkowski Director, Content Production: Terri Schiesl Content Project Manager: Harvey Yep Senior Buyer: Michael R. McCormick Design: Matt Diamond Cover Image: Veer Images Lead Content Licensing Specialist: Keri Johnson Typeface: 10.5/12 Baskerville Compositor: Laserwords Private Limited Printer: R. Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Jones, Gareth R. Essentials of contemporary management/Gareth R. pages cm Includes index. paper)—ISBN 0-07-786253-8 (alk.J5974 2015 658--dc23 2013042410 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 Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.com Brief Contents Part One Part Five Management and Managers Leading Individuals and Groups Chapter One Chapter Nine The Management Process Today 2 Motivation 296 Appendix A: History of Management Thought 36 Chapter Ten Chapter Two Leaders and Leadership 326 Values, Attitudes, Emotions, and Culture: Chapter Eleven The Manager as a Person 44 Effective Team Management 356 Part Two Chapter Twelve The Environment of Management Building and Managing Human Resources 386 Chapter Three Managing Ethics and Diversity 78 Part Six Chapter Four Controlling Essential Activities and Processes Managing in the Global Environment 118 Chapter Thirteen Part Three Communication and Information Planning, Decision Making, and Technology Management 420 Competitive Advantage Chapter Fourteen Chapter Five Operations Management: Decision Making, Learning, Creativity, and Managing Vital Operations Entrepreneurship 154 and Processes 454 Chapter Six Appendix B: Career Development 480 Planning, Strategy, and Competitive Glossary 485 Advantage 184 Notes 495 Part Four Photo Credits 525 Organizing and Change Name Index 526 Chapter Seven Subject Index 534 Designing Organizational Structure 222 Company Index 543 Chapter Eight Control, Change, and Entrepreneurship 258 v Contents Part One Management and Managers Chapter One The Management Process Today 2 Overview What Is Management? 5 Levels and Skills Management Snapshot of Managers 13 Tim Cook Succeeds Steve Jobs Achieving High Performance: as CEO of Apple 3 A Manager’s Goal 5 Levels of Management 13 Why Study Management? 6 Managerial Skills 15 Essential Managerial Tasks 7 Recent Changes in Planning 8 Management Practices 18 Manager as a Person: Joe Restructuring and Coulombe Knows How to Make Outsourcing 18 an Organization Work 10 Managing Globally: First Organizing 11 Outsourcing, Now Insourcing 20 Leading 11 Empowerment and Controlling 12 Self-Managed Teams 21 Chapter Two Values, Attitudes, Emotions, and Culture: The Manager as a Person 44 Overview Management Snapshot Enduring Characteristics: Ethics in Action: Protecting Kevin Plank’s Determination at Personality Traits 47 the Environment and Jobs at Under Armour 45 The Big Five Personality Subaru of Indiana Automotive 56 Traits 47 Moods and Emotions 60 Other Personality Traits That Management Insight: Affect Managerial Behavior 51 Emotions as Triggers for Changes in Organizations 61 Values, Attitudes, and Moods and Emotions 52 Values: Terminal and Instrumental 53 Attitudes 54 vi Management in Action Challenges for Management Summary and Review 29 Appendix A: History of in a Global Environment 22 Management Thought 36 Management in Action 30 F. Taylor and Scientific Building Competitive Topics for Discussion and Action 30 Management 36 Advantage 23 Building Management Skills: Weber’s Bureaucratic Theory 38 Maintaining Ethical and Thinking about Managers and The Work of Mary Parker Socially Responsible Management 31 Follett 40 Standards 25 Managing Ethically 31 The Hawthorne Studies and Ethics in Action: “What Goes Small Group Breakout Exercise: Human Relations 40 Around Comes Around”: How Opening a New Restaurant 31 Theory X and Theory Y 42 Dishonest Top Managers Can Be the Manager: Problems at Corrupt Any Organization—Even Achieva 32 a Court 26 Bloomberg Businessweek Case in the News: Managing a Diverse Costco CEO Craig Jelinek Leads the Workforce 27 Cheapest, Happiest Company in the Utilizing IT and E-Commerce 28 World 32 Management in Action Emotional Intelligence 63 Summary and Review 73 Small Group Breakout Exercise: Making Difficult Decisions in Hard Times 75 Organizational Culture 63 Management in Action 73 Be the Manager 75 Managers and Organizational Topics for Discussion and Action 73 The Wall Street Journal Case Culture 65 Building Management Skills: in the News: More Action, Diagnosing Culture 74 Less Drama at Disney 75 The Role of Values and Norms Managing Ethically 74 in Organizational Culture 67 Culture and Managerial Action 71 vii Contents Part Two The Environment of Management Chapter Three Managing Ethics and Diversity 78 Overview The Nature of Ethics 80 Sources of an Organization’s Management Snapshot Code of Ethics 94 Whole Foods Market Ethical Dilemmas 81 Ethical Organizational Practices What It Preaches 79 Ethics and the Law 81 Cultures 95 Changes in Ethics over Time 82 The Increasing Diversity Stakeholders and Ethics 83 of the Workforce and the Stockholders 84 Environment 96 Managers 85 Age 97 Employees 87 Gender 98 Suppliers and Distributors 87 Race and Ethnicity 99 Customers 87 Religion 100 Community, Society, and Capabilities/Disabilities 101 Nation 88 Ethics in Action: Disabled Rules for Ethical Decision Employees Make Valuable Making 89 Contributions 102 Why Should Managers Behave Ethically? 91 Chapter Four Managing in the Global Environment 118 Overview What Is the Global Sociocultural Forces 131 Management Snapshot Environment? 120 Demographic Forces 133 Nokia Flips Its Approach to Managing the Global Political and Legal Forces 133 The Task Environment 122 Environment 119 Suppliers 122 The Changing Global Managing Globally: Environment 134 How Microsoft Became a The Process of Globalization 135 Powerful Nokia Supplier 125 Managing Globally: IKEA Distributors 126 Is on Top of the Furniture World 136 Customers 127 Declining Barriers to Trade Competitors 127 and Investment 138 Declining Barriers of Distance The General Environment 130 and Culture 139 Economic Forces 130 Effects of Free Trade on Technological Forces 131 Managers 140 viii Management in Action Socioeconomic Background 104 Summary and Review 113 Sexual Orientation 105 Management in Action 114 Focus on Diversity: Topics for Discussion and Action 114 Preventing Discrimination Based Building Management Skills: on Sexual Orientation 105 Solving Diversity-Related Problems 114 Other Kinds of Diversity 106 Managing Ethically 114 Managers and the Effective Small Group Breakout Exercise: Determining If a Problem Exists 115 Management of Diversity 107 Be the Manager 115 Critical Managerial Roles 107 The Wall Street Journal Case in the News: Effectively Managing Diversity Legislators Step Up Push for Paid Sick Makes Good Business Sense 109 Leave 116 Sexual Harassment 110 Forms of Sexual Harassment 111 Steps Managers Can Take to Eradicate Sexual Harassment 111 Management in Action The Role of National Summary and Review 148 Be the Manager: The Changing Culture 141 Environment of Retailing 150 Management in Action 149 Bloomberg Businessweek Case Cultural Values and Norms 142 Topics for Discussion and Action 149 in the News: How Samsung Became Hofstede’s Model of National Building Management Skills: the World’s No. 1 Smartphone Maker 151 Culture 142 Analyzing an Organization’s National Culture and Global Environment 149 Management 144 Managing Ethically: 150 Manager as a Person: Small Group Breakout Exercise: Kazuo Hirai Replaces Howard How to Enter the Copying Business 150 Stringer as CEO of Sony 146 ix Contents Part Three Planning, Decision Making, and Competitive Advantage Chapter Five Decision Making, Learning, Creativity, and Entrepreneurship 154 Overview Management Snapshot Steps in the Decision- Decision Making and The Nature of Managerial Learning at GarageTek 155 Decision Making 156 Making Process 163 Programmed and Recognize the Need for a Nonprogrammed Decision Decision 164 Making 157 Generate Alternatives 165 Manager as a Person: Curbing Assess Alternatives 165 Overconfidence 159 Ethics in Action: Helping to The Classical Model 160 Ensure Decisions Contribute The Administrative Model 160 to Sustainability 167 Chapter Six Planning, Strategy, and Competitive Advantage 184 Overview Management Snapshot Different Ways to Compete Planning and Strategy 186 Formulating Strategy 194 in the Soft Drink Business 185 SWOT Analysis 194 The Nature of the Planning Manager as a Person: Douglas Process 187 Conant Keeps Campbell Soup Hot 196 Why Planning Is Important 187 The Five Forces Model 198 Levels of Planning 189 Levels and Types of Planning 190 Formulating Business-Level Time Horizons of Plans 191 Strategies 199 Standing Plans and Single-Use Low-Cost Strategy 199 Plans 192 Differentiation Strategy 200 “Stuck in the Middle” 200 Determining the Focused Low-Cost and Organization’s Mission Focused Differentiation and Goals 192 Strategies 201 Defining the Business 193 Establishing Major Goals 193 x Management in Action Choose among Alternatives 168 Organizational Learning Summary and Review 177 Implement the Chosen and Creativity 170 Alternative 168 Creating a Learning Management in Action 178 Learn from Feedback 168 Organization 171 Topics for Discussion and Action 178 Building Management Skills: Promoting Individual Group Decision Making 169 Creativity 172 How Do You Make Decisions? 179 The Perils of Groupthink 169 Managing Ethically 179 Promoting Group Creativity 173 Devil’s Advocacy 170 Small Group Breakout Exercise: Entrepreneurship and Brainstorming 180 Diversity among Decision Be the Manager 180 Makers 170 Creativity 174 Fast Company Case in the News: Entrepreneurship and New Working Beyond the Cube 181 Ventures 175 Intrapreneurship and Organizational Learning 176 Management in Action Formulating Corporate- Management Insight: VF Corp.
