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J V.
Essentials of
L LI \
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Gareth R. JonesTexas A&M University
Jennifer M. GeorgeRice University
McGraw-HillIrwin
onTenTsChapter OnemManagementSnapshot:
Ursula Burns "Copies" AnneMulcahy as CEO of Xerox 3
The Management Process Today
Overview
What Is Management?Achieving High Performance:A Manager's Goal
Why Study Management?
Essential ManagerialTasks
Planning
Organizing
Leading
Controlling
Levels and Skills ofManagers
Levels of Management
Managerial Skills
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Recent Changes inManagement Practices
Restructuring andOutsourcing
Empowerment andSelf-Managed Teams
Challenges forManagement in aGlobal Environment
Building CompetitiveAdvantage
Maintaining Ethical andSocially ResponsibleStandards
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Chapter Two Values, Attitudes, Emotions, and Culture:The Manager as a Person
Management Snapshot:PAETEC's Caring Culture 45
Overview 46
Endur ing Characteristics:Personality Traits 46
The Big Five PersonalityTraits 47
Manager as a Person: WhoWould Have Thought Dirty JobsWould Be a Hit? 50
Odier Personality Traits ThatAffect Managerial Behavior 51
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Values, Attitudes, a n dMoods a n d Emotions 53
Values: Terminal andInstrumental 53
Attitudes 55
Management Insight: JobSatisfaction at Record Low inthe United States 55
! Moods and Emotions 58
I
Management in Action
Ethics in Action: "What Goes
Around Comes Around": How
Dishonest Top Managers Can
Corrupt Any Organization-
Even a Court 23
Managing a Diverse
Workforce 24
Focus on Diversity: Accenture's
Global Diversity Initiatives 24
Utilizing I T and E-Commerce 25
Practicing Global Crisis
Management 26
Managing Globally: A Concern
for Safety Explodes at BP 27
Summary and ReviewManagement in ActionTopics for Discussion and ActionBuilding Management Skills:Thinking about Managers andManagementManaging EthicallySmall Group Breakout Exercise:Opening a New RestaurantBe the Manager: Problems atAchievaCase in the News: Apple, withor without Steve Jobs
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Appendix A: History ofManagement Thought
F. W. Taylor and ScientificManagement
Weber's Bureaucratic Theory
The Work of Mary ParkerFollett
The Hawthorne Studies andHuman Relations
Theory X and Theory Y
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Management in Action
Emotional Intelligence 60
Organizational Culture 61Managers and OrganizationalCulture 63
The Role of Values and Normsin Organizational Culture 65
Culture and ManagerialAction 69
Summary and Review 71
Management in Action 72Topics for Discussion and Action 72Building Management Skills:Diagnosing Culture 72Managing Ethically 73
Small Group Breakout Exercise:Making Difficult Decisions in HardTimes 73Be the Manager 73
Case in the News: Merck's Risky
Bet on Research 74
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onTeriTSChapter Three Managing Ethics and Diversity 76
! life
Management Snapshot:Taking Care of Employeesat Costco 77
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1
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Overview
The Nature of EthicsEthical Dilemmas
Ethics and the Law
Changes in Ethics over Time
Stakeholders and EthicsStockholders
Managers
Employees
Suppliers and Distributors
Customers
Ethics in Action: WholeFoods Market Practices What ItPreaches
Community, Society, and
Nation
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Rules for Ediical DecisionMaking
Why Should ManagersBehave Ethically?
Sources of an Organization'sCode of Ethics
Ediical OrganizationalCultures
The Increasing Diversityof the Workforce and theEnvironment
AgeGender
Race and Edinicity
Religion
Capabilities/Disabilities
Socioeconomic Background
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Chapter Four Managing in the Global Environment 114
Management Snapshot:Nestle's Global FoodEmpire 115
Overview
What Is the GlobalEnvironment?
The Task EnvironmentSuppliers
Managing Globally: WhyNokia Makes Cell Phones inRomania
Distributers
CustomersCompetitors
The GeneralEnvironment
Economic Forces
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Technological Forces
Sociocultural Forces
Demographic Forces
Political and Legal Forces
The Changing GlobalEnvironment
The Process of Globalization
Managing Globally: IKEA Ison Top of the Furniture World
Declining Barriers to Tradeand Investment
Declining Barriers ofDistance and Culture
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Management in Action
Sexual Orientation 102
Focus on Diversity: PreventingDiscrimination Based on SexualOrientation 102
Other Kinds of Diversity 103
Managers and the EffectiveManagement of Diversity 104
Critical Managerial Roles 104
Effectively Managing
Diversity Makes Good
Business Sense 105
Sexual Harassmen t 107Forms of Sexual Harassment 107
Steps Managers Can Take toEradicate Sexual Harassment 108
S u m m a r y a n d Review 109
Management in Action mTopics for Discussion and Action 111Building Management Skills:Solving Diversity-Related
Problems 111Managing Ethically 112Small Group Breakout Exercise:Determining If a Problem Exists 112Be the Manager 112
1 Case in the News: Keeping
Women on the Job in India 113
Management in Action
Effects of Free Trade onManagers
The Role of NationalCulture
Cultural Values and Norms
Hofstede's Model ofNational Culture
National Culture and
Global Management
Information TechnologyByte: Global Self-ManagedTeams Give IBM a CompetitiveAdvantage
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Summary and Review
Management in ActionTopics for Discussion and ActionBuilding Management Skills:Analyzing an Organization'sEnvironment
Managing EthicallySmall Group Breakout Exercise:How to Enter the CopyingBusiness
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Be the Manager: The ChangingEnvironment of RetailingCase in the News: ChineseCompanies Expand to U.S.Soil and Markets
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ContentsChapter Five Decision Making, Learning, Creativity,
and Entrepreneurship 146
rMM Overview
1 Management Snapshot The Nature of Managerial1 Decision Making and _. . . , , , . °1 Learning at GarageTek 147 Decision Making1 Programmed and1 Nonprogrammed Decision1 Making1 Focus on Diversity:1 Programmed Decision Making
1 , at UPS1 The Classical Model
1 The Administrative Model
1 Steps in the Dedsion-1 Making Process1 Recognize the Need for a
Decision
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Generate Alternatives
Assess Alternatives
Choose among AlternativesImplement die ChosenAlternative
Learn from Feedback
Group Decision MakingThe Perils of Groupthink
Devil's Advocacy
Diversity among DecisionMakers
OrganizationalLearning and Creativity
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Chapter Six Planning, Strategy, and CompetitiveAdvantage 174
Management SnapshotDifferent Ways to Compete inthe Soft Drink Business 175
Overview 176
Planning and Strategy 176
T h e Na tu re of thePlanning Process 177
Why Planning Is Important 177
Levels of Planning 179
Levels and Types of Planning 180
Time Horizons of Plans 181
Standing Plans andSingle-Use Plans 182
Determining theOrganization's Missionand Goals 182
Defining die Business 182
Management Insight: HasMattel's Barbie Won the Waragainst the Bratz Doll? 183
Establishing Major Goals 185
Formulating Strategy 185SWOT Analysis 186
Manager as a Person:Douglas Conant KeepsStirring up Campbell Soup 187
The Five Forces Model 189
Formulating Business-LevelStrategies 190
Low-Cost Strategy 191
Management in Action
Creating a LearningOrganization 162
Promoting IndividualCreativity 163
Promoting Group Creativity 164
Entrepreneurship andCreativity 165
Ethics in Action: FindingFunding to Do Good 166
Entrepreneurship and NewVentures 167
Intrapreneurship andOrganizational Learning 168
Summary and Review 169
M a n a g e m e n t in Action 170Topics for Discussion and Action 170Building Management Skills:How Do You Make Decisions? 171Managing Ethically 171Small Group Breakout Exercise:Brainstorming 171Be the Manager 172Case in the News: Alcatel-LucentChops Away at Years of Failure 172
Management in Action
Differentiation Strategy
"Stuck in the Middle"
Focused Low-Cost andFocused DifferentiationStrategies
Formulating Corporate-Level Strategies
Concentration on aSingle Industry
Vertical Integration
Diversification
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Management Insight: Howto Make Related DiversificationWork 197
International Expansion 199
Managing Globally: How
Samsung Became a Global
Technology Leader 204
Planning andImplementing Strategy 205
Summary and Review 205
Management in Action 206Topics for Discussion and Action 206Building Management Skills:How to Analyze a Company'sStrategy 207
Managing Ethically 207Small Group Breakout Exercise:Low Cost or Differentiation? 207Be the Manager 208Case in the News: Nestle'sRecipe for Juggling VolatileCommodity Costs: To Counter RisingExpenses the Swiss Food GiantTightens Operations and MovesUpscale 208
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ContentsChapter Seven Designing Organizational Structure 210
Management SnapshotAlan Mulally TransformsFord 211
Overview 212
Designing OrganizationalStructure 212
The OrganizationalEnvironment 213
Strategy 214
Technology 214
Human Resources 215
Grouping Tasks into Jobs :J o b Design 215
Job Enlargement and JobEnrichment 216
The Job Characteristics
Model 217
Grouping Jobs intoFunctions and Divisions:Designing OrganizationalStructure 218
Functional Structure 219
Divisional Structures:Product, Market, andGeographic 221
Matrix and Product TeamDesigns 226
Management Insight: A SchoolDistrict Moves from a Geographicto a Market Structure 227
Coordinating Functionsand Divisions 229
Chapter Eight Control, Change, and Entrepreneurship 248
Management SnapshotToyota Needs a MajorFix to Its Quality ControlSystem 249
Overview
What Is OrganizationalControl?
The Importance ofOrganizational ControlControl Systems and IT
The Control Process
Output ControlFinancial Measures ofPerformance
Management Insight:Making the FinancialFigures Come Alive
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Organizational Goals
Operating Budgets
Problems widi OutputControl
Behavior ControlDirect SupervisionManagement by Objectives
Management Insight:Microsoft Has ProblemsEvaluating Its Employees
Bureaucratic Control
Problems widi BureaucraticControl
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Management in Action
Allocating Authority 229
Managing Globally: EmpoweredSelf-Managed Teams Can HelpMany Companies 233
Management Insight: ToDecentralize or Centralize:Union Pacific and Yahoo! 235
Integrating and CoordinatingMechanisms 236
Strategic Alliances,B2B Network Structures,and IT 238
Ethics in Action: Of Shoes andSweatshops 240
Summary and Review 241Management in Action 242Topics for Discussion and Action 242Building Management Skills:Understanding Organizing 242Managing Ethically 243Small Group Breakout Exercise:Bob's Appliances 243Be the Manager: Speeding UpWebsite Design 244Case in the News: Larry Page'sGoogle 3.0: The Company Cofounderand His Star Deputies Are Trying toRoot Out Bureaucracy and Rediscoverthe Nimble Moves of Youth 245
Management in Action
Organizational Cultureand Clan Control
Manager as a Person: JamesCasey and Sam Walton CreateCultures That Live On
Adaptive Cultures versus
Inert Cultures
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Implementing the Change
Manager as a Person: BobIger's Big Changes at Walt
DisneyEvaluating the Change
Entrepreneurship,
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Organizational Change 271Assessing the Need forChange 273
Deciding on die Changeto Make 273
Control, and Change 276Manager as a Person: HowPfizer EncouragedEntrepreneurship to CreateNew Blockbuster Drugs 278
Summary and ReviewManagement in ActionTopics for Discussion and ActionBuilding Management Skills:Understanding ControllingManaging EthicallySmall Group Breakout Exercise:How Best to Control the SalesForce?Be the ManagerCase in the News: Benetton:A Must-Have Becomes aHas-Been
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Contents(Jha
11.pter JNine
Management SnapshotHigh Motivation at SAS 285
Motivation
Overview
The Nature ofMotivation
Expectancy TheoryExpectancy
Instrumentality
Valence
Bringing It All Together
Management Insight:Motivating Employees atEnterprise Rent-A-Car
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Need TheoriesMaslow's Hierarchy of Needs
Herzberg's Motivator-HygieneTheory
McClelland's Needs forAchievement, Affiliation,and Power
Other Needs
Equity TheoryEquity
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Chapter Ten Leaders and Leadership 314
mffl OverviewHThe Nature of
Management Snapshot LeadershipMcGrath Effectively Leads „ . T , , . „ , ,„ _ , ,. . , „.,_ Personal Leadership Style andMTV Networks 315 , . . , _, , ^ '
Managerial Tasks
Ethics in Action: ServantLeadership at Zingerman's
Leadership Styles acrossCultures
Power: The Key toLeadership
Empowerment: An Ingredientin Modern Management
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Trait and Behavior Modelsof Leadership
The Trait Model
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The Behavior Model
Contingency Models ofLeadership
Fiedler's Contingency ModelHouse's Padi-Goal TheoryThe Leader SubstitutesModelBringing It All Together
TransformationalLeadership
Being a Charismatic Leader
Stimulating SubordinatesIntellectually
Engaging in DevelopmentalConsideration
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Management in Action
InequityWays to Restore Equity
Goal-Setting Theory
Learning TheoriesInformation TechnologyByte: Tough Times SpurLearning
Operant ConditioningTheory
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Social Learning Theory 303
Pay a n d Motivation 305
Basing Merit Pay on Individual,Group, or OrganizationalPerformance 305
Salary Increase or Bonus? 306
Examples of Merit Pay Plans 307
S u m m a r y a n d Review 308
Managemen t in Action 309
Topics for Discussion and Action 309Building Management Skills:Diagnosing Motivation 309Managing Ethically 310Small Group Breakout Exercise:Increasing Motivation 310Be the Manager 311Case in the News: The TragicFall of Reserved Parking 311
Management in Action
The Distinction betweenTransformational andTransactional Leadership 333
Gender a n d Leadership 333
Emotional Intelligenceand Leadership 334
Focus on Diversity: Admittinga Mistake Helps Small BusinessLeader 335
S u m m a r y a n d Review 336
Managemen t in Action 338
Topics for Discussion and Action 338Building Management Skills:Analyzing Failures of Leadership 338Managing Ethically 339Small Group BreakoutExercise: Improving LeadershipEffectiveness 339Be the Manager 340Case in the News: How SiemensGot Its Geist Back 340
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ContentsChapter Eleven Effective Team Management 342
Management SnapshotTeams Spur Innovation atCisco 343
Overview
Groups, Teams, andOrganizationalEffectiveness
Groups and Teams asPerformance Enhancers
Groups, Teams, andResponsiveness to Customers
Teams and Innovation
Groups and Teams asMotivators
Types of Groups andTeams
The Top Management Team
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Research and DevelopmentTeams
Command GroupsTask Forces
Self-Managed Work Teams
Virtual Teams
Friendship Groups
Interest Groups
Group DynamicsGroup Size and Roles
Group Leadership
Ethics in Action: Leadershipin Teams at ICU Medical
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Chapter Twelve Building and Managing Human Resources 372
Management SnapshotEffectively Managing HumanResources at Zappos 373
Overview
Strategic Human ResourceManagement
Overview of die ComponentsofHRM
Managing Globally: ManagingHuman Resources at Semco
The Legal Environment ofHRM
Recruitment andSelection
Human Resource Planning
Job Analysis
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External and InternalRecruitment
The Selection Process
Training andDevelopment
Types of Training
Types of Development
Transfer of Training andDevelopment
Performance Appraisaland Feedback
Types of PerformanceAppraisal
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Management in Action
Group Development overTime 355
Group Norms 356
Management Insight: TeamsBenefit from Deviance andConformity at IDEO 359
Group Cohesiveness 360
Managing Groups a n dTeams for HighPerformance 363
Motivating Group Membersto Achieve OrganizationalGoals 363
Reducing Social Loafingin Groups 365
S u m m a r y a n d Review 367
Managemen t in Action 368Topics for Discussion and Action 368Building Management Skills:Diagnosing Group Failures 368Managing Ethically 369Small Group Breakout Exercise:Creating a Cross-Functional Team 369Be the Manager 369Case in the News: HP Cancels TheBoard and the Beautiful 370
Management in Action
Who Appraises Performance? 391
Effective PerformanceFeedback 392
Pay and BenefitsPay Level
Management Insight:Treating Employees WellLeads to Satisfied Customers
Pay Structure
Benefits
Labor RelationsUnions
Collective Bargaining
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Summary and Review 399Management in Action 400Topics for Discussion and Action 400Building Management Skills: Analyzing
Human Resource SystemsManaging EthicallySmall Group Breakout Exercise:Building a Human ResourceManagement SystemBe the ManagerCase in the News: In Tech,Poaching Is the Sincerest Form ofFlattery
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ContentsChapter Thirteen Communication and Information Technology
Management 4oe
Management SnapshotPromoting Communicationthrough Cloud Computingand Server Networks 407
Overview 408
Information and theManager 's Job 409
Attributes of UsefulInformation 409What Is InformationTechnology? 411Information and Decisions 411Information and Control 412Management Insight: HermanMiller's Office of the Future 413Information andCoordination 414
Communicat ion,Information, andManagement 414
The Importance of GoodCommunication 414
Information Technology Byte:Collaboration Software FacilitatesCommunication in Teams 415The Communication Process 416The Dangers of IneffectiveCommunication 418
Management Insight: WhyManagers Need Feedback fromEmployees 418
Information Richness andCommunication Media 420
Face-to-Face Communication 421Spoken CommunicationElectronically Transmitted 422
Chapter Fourteen
Management SnapshotHow Starwood Uses SixSigma to Improve HotelPerformance 439
Operations Management: Managing VitalOperations and Processes
Overview 440
Operations Managementand CompetitiveAdvantage 440
Improving Responsivenessto Customers 441
What Do Customers Want? 441Designing Production Systemsto Be Responsive toCustomers 442
Management Insight: First GlobalXpress Delivers Packages Faster,Cheaper, and Greener 443
438
Customer RelationshipManagement 444
Information Technology Byte:How CRM Helped EmpireHealthChoice 445
Improving Quality
Improving Efficiency
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Facilities Layout, FlexibleManufacturing, andEfficiency 447
Manager as a Person: How toImprove Facilities Layout 449
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Management in Action
Personally Addressed WrittenCommunication 423
Impersonal WrittenCommunication 424
Advances in InformationTechnology 425
The Effects of Advancing IT 425IT and the Product Life Cycle 426The Network of ComputingPower 428
Types of ManagementInformation Systems 429
The Organizational Hierarchy:The Traditional InformationSystem 429Transaction-ProcessingSystems 430Operations InformationSystems 431Decision Support Systems 431Expert Systems and Artificial
; Intelligence 432
Limitations of InformationSystems 432
S u m m a r y a n d Review 433
M a n a g e m e n t in Action 434Topics for Discussion and Action 434Building Management Skills:Diagnosing IneffectiveCommunication 434Managing Ethically 434Small Group Breakout Exercise:Using New Information Systems 435Be the Manager: A Problem inCommunication 435Case in the News: I'll Have My RobotsTalk to Your Robots: Telepresence—Communications Tools AreComing of Age 436
Management in Action
Managing Globally: Igus'sFactory of the Future 451
Just-in-Time Inventory andEfficiency 452
Self-Managed Work Teams andEfficiency 453
Process Reengineering andEfficiency 453
Operations Management:Some Remaining Issues 455
Ethics in Action: The HumanCost of Improving Productivity 455
Summary and Review 456Management in Action 457Topics for Discussion and Action 457Building Management Skills:Managing a Production System 457 IManaging Ethically 457 J
Small Group Breakout Exercise: |How to Compete in the Sandwich jBusiness 458Be the Manager: How to BuildFlat-Panel Displays 458Case in the News: Home Depot'sFix-It Lady: Chief Financial Officer
Carol Tome Has a Shot at CEO, If SheCan Solve the Retailer's TechnologyProblems 458Appendix B: CareerDevelopment 460
Types of Careers . 461
Career Stages 462
Effective Career Management 464
Glossary 465Notes 477Photo Credits 506Name Index 508Subject Index 518Company Index 528
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