Global Edition Stephen P. ROBBINS Mary COULTER

ELEVENTH EDITION

Global Edition

Stephen P. ROBBINSSan Diego State University

Mary COULTERMissouri State University

Boston Columbus Indianapolis New York San Francisco Upper Saddle RiverAmsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto

Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

ContentsPreface 23

Part 1 The World ©I Management

Chapter 1 Foundations of Management and Organizations 30Why Are Managers Important? 32Who Are Managers and Where Do They Work? 33

Who Is a Manager? 33

Where Do Managers Work? 34

What Do Managers Do? 36Management Functions 37Mintzberg's Managerial Roles and a Contemporary Model of ManagingManagement Skills 40

How Is the Manager's Job Changing? 41Importance of Customers to the Manager's Job 42Importance of Innovation to the Manager's Job 44Importance of Sustainability to the Manager's Job 44

Why Study Management? 45The Universality of Management 45

The Reality of Work 46

Rewards and Challenges of Being a Manager 46

Boxed FeaturesA Manager's Dilemma 32BY THE NUMBERS 33

FUTURE VISION | The Working World in 2020 35

LEADER WHO MADE A DIFFERENCE | Andrew Cherng 40

My Response to A Manager's Dilemma 47

Chapter Summary by Learning Outcomes 48Review and Discussion Questions 49Preparing for: My Career 49Case Application 1: More Than a Good Story 51Case Application 2: Flight Plans 52

Module Management History 55Early Management 56Classical Approach 57Behavioral Approach 6OQuantitative Approach 62Contemporary Approaches 64

38

10 CONTENTS

Chapter 2 Constraints and Challenges for the GlobalManager 70The Manager: Omnipotent or Symbolic? 72

The Omnipotent View 72The Symbolic View 73

The External Environment: Constraints andChallenges 74

The Economic Environment 75

The Demographic Environment 75How the External Environment Affects Managers 76

Organizational Culture: Constraintsand Challenges 79

What Is Organizational Culture? 79Strong Cultures 80Where Culture Comes From and How It Continues 82How Employees Learn Culture 83

How Culture Affects Managers 84

Current Issues in Organizational Culture 86Creating an Innovative Culture 86Creating a Customer-Responsive Culture 86Spirituality and Organizational Culture 86

Boxed Features

A Manager's Dilemma 72FUTURE VISION | The Working World in 2020 75

LEADER WHO MADE A DIFFERENCE | Betsy Mclaughlin 78

BY THE NUMBERS 84


Chapter Summary by Learning Outcomes 9OReview and Discussion Questions 91Preparing for: My Career 91Case Application 1: Out of Control 93Case Application 2: MYDIN 94

Part II Managing in the Twenty-First Century

Chapter 3 Global Management 96Who Owns What? 98What's Your Global Perspective? 99Understanding the Global Environment 1OO

Regional Trading Alliances 100

Global Trade Mechanisms 104

Doing Business Globally 1O5Different Types of International Organizations 106

How Organizations Go International 106

Managing in a Global Environment 1O8The Political/Legal Environment 108

The Economic Environment 108

The Cultural Environment 109

Global Management in Today's World 112

CONTENTS 11

Boxed Features

A Manager's Dilemma 98LEADER WHO MADE A DIFFERENCE | Indra Nooyi 100BYTHE NUMBERS 105My Response to A Manager's Dilemma 115

Chapter Summary by LearningOutcomes 116

Review and Discussion Questions 117

Preparing for: My Career 117

Case Application 1: Held Hostage 119

Case Application 2: Global Stumble 121

Chapter 4 The Diverse Workforce 124Diversity 1O1 126

What Is Workplace Diversity? 126Why Is Managing Workforce Diversity So Important? 128

The Changing Workplace 13OCharacteristics of the U.S. Population 130

What About Global Workforce Changes? 131

Types of Workplace Diversity 133Age 133Gender 134Race and Ethnicity 135Disability/Abilities 136 ,Religion 137

GLBT: Sexual Orientation and Gender Identity 137

Other Types of Diversity 138

Challenges in Managing Diversity 138Personal Bias 138Glass Ceiling 140

Workplace Diversity Initiatives 14OThe Legal Aspect of Workplace Diversity 141Top Management Commitment to Diversity 142Mentoring 142Diversity Skills Training 143Employee Resource Groups 143

Boxed Features

A Manager's Dilemma 126BYTHE NUMBERS 137LEADER WHO MADE A DIFFERENCE | Kenneth I. Chenault 140My Response to A Manager's Dilemma 144

Chapter Summary by Learning Outcomes 145



Case Application 1: Mission Possible: StrategicDiversity 148

Case Application 2: Women in Management atDeutsche Telekom: Part 2 149

12 CONTENTS

Chapter 5

Chapter 6

152

Social Responsibility and Ethics 150What Is Social Responsibility? 152

From Obligations to Responsiveness to Responsibility

Should Organizations Be Socially Involved? 154

Green Management and Sustainability 155How Organizations Go Green 155

Evaluating Green Management Actions 157

Managers and Ethical Behavior 157Factors That Determine Ethical and Unethical Behavior 158Ethics in an International Context 161

Encouraging Ethical Behavior 163Employee Selection 163Codes of Ethics and Decision Rules 163Leadership 165Job Goals and Performance Appraisal 165Ethics Training. 166Independent Social Audits 167Protective Mechanisms 167

Social Responsibility and Ethics IssuesIn Today's World 167

Managing Ethical Lapses and Social Irresponsibility 167Social Entrepreneurship 168

Businesses Promoting Positive Social Change 169

Boxed Features

A Manager's Dilemma 152LEADER WHO MADE A DIFFERENCE

BYTHE NUMBERS 160


Yvon Chouinard 156




Case Application 1: Lessons fromLehman Brothers: Will We Ever Learn? 175

Case Application 2: Green Up on Aisle Two 176

Change and Innovation 178The Change Process 18O

Two Views of the Change Process 180

Types of Organizational Change 182

What Is Organizational Change? 183

Types of Change 183

Managing Resistance to Change 186

Why Do People Resist Change? 186

Techniques for Reducing Resistance to Change 186

Contemporary Issues in Managing Change 187

Changing Organizational Culture 187

Employee Stress 189

Making Change Happen Successfully 192

Stimulating Innovation 193Creativity Versus Innovation 194

Stimulating and Nurturing Innovation 194

CONTENTS 13

Boxed FeaturesA Manager's Dilemma 180FUTURE VISION | The Working World in 2020 184

BYTHE NUMBERS 190

LEADER WHO MADE A DIFFERENCE | RatanTata 196





Case Application 1: Too Big to Change? 2O2

Case Application 2: The Port of Rotterdam 2O3

Part ill Planning

Chapter 7 Decision-Making 204The Decision-Making Process 2O6

Step I: Identifying a Problem 207Step 2: Identifying Decision Criteria 208Step 3: Allocating Weights to the Criteria 208Step 4: Developing Alternatives 209Step 5: Analyzing Alternatives 209Step 6: Selecting an Alternative 210Step 7: Implementing the Alternative 210Step 8: Evaluating Decision Effectiveness 210

Managers Making Decisions 210Making Decisions: Rationality 211Making Decisions: Bounded Rationality 211Making Decisions: The Role of Intuition 212Making Decisions: The Role of Evidence-Based Management 213

Types of Decisions and Decision-MakingConditions 213

Types of Decisions 213

Decision-Making Conditions 215

Decision-Making Styles 218Linear-Nonlinear Thinking Style Profile 218Decision-Making Biases and Errors 218

Overview of Managerial Decision Making 220

Effective Decision Making in Today's World 22O

Boxed Features


LEADER WHO MADE A DIFFERENCE | Mikhail D. Prokhorov 217

BYTHE NUMBERS 221





Case Application 1: China's TV Industry 227

Case Application 2: Underwater Chaos 228

14 CONTENTS

Chapter 8 Foundations of Planning 230The What and Why of Planning 232

What Is Planning? 232Why Do Managers Plan? 233

Planning and Performance 233

Goals and Plans 233

Types of Goals 234

Types of Plans 235

Setting Goals and Developing Plans 236Approaches to Setting Goals 236Developing Plans 239Approaches to Planning 240

Contemporary Issues in Planning 24OHow Can Managers Plan Effectively in DynamicEnvironments? 241How Can Managers Use Environmental Scanning? 242

Boxed Features

A Manager's Dilemma 232

LEADER WHO MADE A DIFFERENCE | Jeff Bezos' 236

BYTHE NUMBERS 239My Response to A Manager's Dilemma 243




Case Application 1: Short-Term and Long-Term

/ Planning in the UK Construction Industry 247

Case Application 2: Building a Future 248

Chapter 9 Strategic Management 250Strategic Management 252

What Is Strategic Management? 252

Why Is Strategic Management Important? 253

The Strategic Management Process 254

Step I: Identifying the Organization's Current Mission, Goals,and Strategies 255Step 2: Doing an External Analysis 255Step 3: Doing an Internal Analysis 256Step 4: Formulating Strategies 256Step 5: Implementing Strategies 256

Step 6: Evaluating Results 256

Corporate Strategies 256What Is Corporate Strategy? 256

What Are the Types of Corporate Strategy? 257

How Are Corporate Strategies Managed? 258

Competitive Strategies 259The Role of Competitive Advantage 259Choosing a Competitive Strategy 261

Current Strategic Management Issues 262

The Need for Strategic Leadership 263

The Need for Strategic Flexibility 264

Important Organizational Strategies for Today's Environment 264

CONTENTS 15

Boxed Features


LEADER WHO MADE A DIFFERENCE | Ursula Burns 258

BYTHE NUMBERS 262


Chapter Summary by Learning Outcomes 268Review and Discussion Questions 269Preparing for: My Career 27OCase Application 1: Gaga Over Gaga 272Case Application 2: Faded Signal 273

Module Planning Tools and Techniques 276Techniques for Assessing the Environment 276

Environmental Scanning 276Forecasting 277Benchmarking 279

Techniques for Allocating Resources 279Budgeting 280Scheduling 281Breakeven Analysis 284Linear Programming 285

Contemporary Planning Techniques 286Project Management 286Scenario Planning 287

Part IV Organizing

Chapter 10 Foundations of Organizational Design 290Designing Organizational Structure 292

Work Specialization 293Departmentalization 293Chain of Command 296

Span of Control 299

Centralization and Decentralization 300

Formalization 301

Mechanistic and Organic Structures 3O1Contingency Factors Affecting Structural Choice 3O2

Strategy and Structure 303Size and Structure 303Technology and Structure 303

Environmental Uncertainty and Structure 304

Traditional Organizational Designs 3O5Simple Structure 305Functional Structure 306Divisional Structure 306

Boxed Features

A Manager's Dilemma 292BYTHE NUMBERS 301

LEADER WHO MADE A DIFFERENCE | Andrea Jung 304


16 CONTENTS

Chapter Summary by Learning Outcomes 3O8

Review and Discussion Questions 3O9

Preparing for: My Career 3O9

Case Application 1: Project Sapphire 311

Case Application 2: A New Kind of Structure 312

Chapter 11 Contemporary Organizational Design 314Contemporary Organizational Designs 316

Team Structures 317

Matrix and Project Structures 318

The Boundaryless Organization 318

Learning Organizations 320

Organizing for Collaboration 321Internal Collaboration 322

External Collaboration 323

Flexible Work Arrangements 325

Telecommuting 325

Compressed Workweeks, Flextime, and Job Sharing 326

Contingent Workforce 327

Today's Organizational Design Challenges 328Keeping Employees Connected 328Managing Global Structural Issues 329

Boxed Features


BYTHE NUMBERS 325

LEADER WHO MADE A DIFFERENCE | John T Chambers 329





Case Application 1: In the Driver's Seat 335

Case Application 2: The Virus Hunters 336

Chapter 12 Human Resource Management 338The Human Resource Management Process

Why Is HRM Important? 340External Factors That Affect the HRM Process 341

Identifying and Selecting CompetentEmployees 346

Human Resource Planning 346Recruitment and Decruitment 347

Selection 349

Providing Employees with Needed Skillsand Knowledge 351

Orientation 351

Employee Training 352

Retaining Competent, High-PerformingEmployees 354

Employee Performance Management 354Compensation and Benefits 354

3 4 O

CONTENTS 17

Contemporary Issues in Managing HumanResources 356

Managing Downsizing 356Managing Sexual Harassment 357Managing Work-Life Balance 358Controlling HR Costs 360

Lisa Brummel 345

Boxed Features


LEADER WHO MADE A DIFFERENCE

BYTHE NUMBERS 352






Case Application 1: Thinking Outsidethe Box 366

Case Application 2: Social Connections 367

Module Managing Your Career 368Career Opportunities in Management 368Finding a Culture That Fits 368Taking Risks 369Reinventing Yourself 369Learning to Get Along with Difficult People 369

What Do I Want from My Job? 370

How Can I Have a Successful Career? 370

Chapter 13 Groups and Teams 372Groups and Group Development 374

What Is a Group? 374

Stages of Group Development 374

Work Group Performance and Satisfaction 376External Conditions Imposed on the Group 376

Group Member Resources 377

Group Structure 377

Group Tasks 384

Turning Groups into Effective Teams 385What Is a Work Team? 385

Types of Work Teams 386

Creating Effective Work Teams 387

Current Challenges in Managing Teams 389

Managing Global Teams 389

Building Team Skills 391

Understanding Social Networks 391

Boxed Features


BYTHE NUMBERS 377


LEADER WHO MADE A DIFFERENCE | Marissa Mayer 389


18 CONTENTS




Case Application 1: Aiming Higher: MotivatingKnowledge Workers 396

Case Application 2: Making Order Out of Chaos 3 9 7

Part V Leading

Chapter 14 Foundations of Individual Behavior 398Focus and Goals of Organizational Behavior 4OO

Focus of Organizational Behavior 400Goals of Organizational Behavior 401

Attitudes and Job Performance 4O2

Job Satisfaction 403

Job Involvement and Organizational Commitment 405Employee Engagement 405Attitudes and Consistency 406

Cognitive Dissonance Theory 407Attitude Surveys 407Implications for Managers 408

Personality 4O8

MBTI® 409

The Big Five Model 410

Additional Personality Insights 410Personality Types in Different Cultures 412

Emotions and Emotional Intelligence 413Implications for Managers 414

Perception 415

Factors That Influence Perception 415Attribution Theory 416

Shortcuts Used in Judging Others 417Implications for Managers 418

Learning 418

Operant Conditioning 418Social Learning 419

Shaping: A Managerial Tool 419Implications for Managers 420

Contemporary Issues in Organizational Behavior 42O

Managing Generational Differences 420Managing Negative Behavior in the Workplace 422

Chew Choon Seng 408

Boxed Features

A Manager's Dilemma 400LEADER WHO MADE A DIFFERENCE

BYTHE NUMBERS 411






CONTENTS 19

Case Application 1: Understanding HCLites:Part 2 428Case Application 2: Odd Couples 429

Chapter 15 Communication 430The Nature and Function of Communication 432. What Is Communication? 432

Functions of Communication 433Methods of Interpersonal Communication 434Effective Interpersonal Communication 437

Barriers to Communication 437Overcoming the Barriers 438

Organizational Communication 44OFormal Versus Informal Communication 440Direction of Communication Flow 440Organizational Communication Networks 441Workplace Design and Communication 442

Information Technology and Communication 444How Technology Affects Managerial Communication 444How Information Technology Affects Organizations 445

Communication Issues in Today'sOrganizations 445

Managing Communication in an Internet World 445Managing the Organization's Knowledge Resources 446The Role of Communication in Customer Service 447Getting Employee Input 448Communicating Ethically 448

Boxed FeaturesA Manager's Dilemma 432

LEADER WHO MADE A DIFFERENCE | Steve Jobs 435


BYTHE NUMBERS 446


Chapter Summary by Learning OutcomesReview and Discussion Questions 451Preparing for: My Career 452Case Application 1: Gossip Girls 453Case Application 2: Delivery Disaster 454

Chapter 16 Motivation 456What Is Motivation? 458Early Theories of Motivation 459

Maslow's Hierarchy of Needs Theory 459McGregor's Theory X and Theory Y 460Herzberg's Two-Factor Theory 461Three-Needs Theory 462

45O

Contemporary Theories of MotivationGoal-Setting Theory 463Reinforcement Theory 465Designing Motivating Jobs 466Equity Theory 469

4 6 3

20 CONTENTS

Expectancy Theory 470Integrating Contemporary Theories of Motivation 471

Current Issues in Motivation 473Motivating in Tough Economic Circumstances 473Managing Cross-Cultural Motivational Challenges 473Motivating Unique Groups of Workers 475Designing Appropriate Rewards Programs 477

Boxed Features


LEADER WHO MADE A DIFFERENCE | John Goodnight 464


BYTHE NUMBERS 477My Response to A Manager's Dilemma 479

Chapter Summary by Learning Outcomes 48OReview and Discussion Questions 481Preparing for: My Career 481Case Application 1: Searching For? 483Case Application 2: Best Practices at Volvo 484

Chapter 17 Leadership 486Who Are Leaders and What Is Leadership? 488Early Leadership Theories 488

Leadership Trait Theories 489

Leadership Behavior Theories 490

Contingency Theories of Leadership 4 9 2/ The Fiedler Model 492

Hersey and Blanchard's Situational Leadership Theory 494Path-Goal Model 495

Contemporary Views of Leadership 497Leader-Member Exchange (LMX) Theory 497

Transformational-Transactional Leadership 497

Charismatic-Visionary Leadership 498

Team Leadership 499

Leadership Issues in The Twenty-First Century 5OOManaging Power 500Developing Trust 501Empowering Employees 502Leading Across Cultures 503Becoming an Effective Leader 504

Boxed Features

A Manager's Dilemma 488LEADER WHO MADE A DIFFERENCE | Ajay Banga 497BYTHE NUMBERS 499My Response to A Manager's Dilemma 505

Chapter Summary by Learning Outcomes 5O6Review and Discussion Questions 5O7Preparing for: My Career 5O7Case Application 1: Growing Leaders 510Case Application 2: Master and Commander 511

CONTENTS 21

Part VI Controlling

Chapter 18 Foundations of Control 512What Is Controlling and Why Is It Important? 514The Control Process 516

Step I. Measuring Actual Performance 516Step 2. Comparing Actual Performance Against the Standard 517Step 3. Taking Managerial Action 518

Managerial Decisions in Controlling 519

Controlling for Organizational Performance 519What Is Organizational Performance? 520Measures of Organizational Performance 520

Tools for Measuring OrganizationalPerformance 521

Feedforward/Concurrent/Feedback Controls 522Financial Controls 523Balanced Scorecard 524Information Controls 525

Benchmarking of Best Practices 526

Contemporary Issues in Control 527Adjusting Controls for Cross-Cultural Differences 527Workplace Concerns 527Workplace Violence 529Controlling Customer Interactions 531Corporate Governance 532

Boxed Features -

A Manager's Dilemma 514LEADER WHO MADE A DIFFERENCE | Bob Iger 526BYTHE NUMBERS 528My Response to A Manager's Dilemma 534

Chapter Summary by Learning Outcomes 535Review and Discussion Questions 536Preparing for: My Career 536Case Application 1: Deepwater in Deep Trouble 538Case Application 2: Baggage Blunders 539

Chapter 19 Operations Management 542The Role of Operations Management 544

Services and Manufacturing 545Managing Productivity 545Strategic Role of Operations Management 546

What Is Value Chain Management and Why IsIt Important? 547

What Is Value Chain Management? 547Goal of Value Chain Management 548Benefits of Value Chain Management 548

Managing Operations Using Value ChainManagement 549

Value Chain Strategy 549Obstacles to Value Chain Management 552

22 CONTENTS

Current Issues in Managing Operations 554Technology's Role in Operations Management 554Quality Initiatives 555Quality Goals 556Mass Customization and Lean Organization 557

Boxed Features

A Manager's Dilemma 544LEADER WHO MADE A DIFFERENCE | Muhtar Kent 547BYTHE NUMBERS 553My Response to A Manager's Dilemma 558

5 5 9

567

Chapter Summary by Learning OutcomesReview and Discussion Questions 56OPreparing for: My Career 56OCase Application 1: A Fast Way to Fast Food 562Case Application 2: Lean Manufacturing in China 563

Appendix Managing Entrepreneurial Ventures 565The Context of Entrepreneurship 565

What Is Entrepreneurship? 565Why Is Entrepreneurship Important? 566The Entrepreneurial Process 566What Do Entrepreneurs Do? 567

Social Responsibility and Ethics Issues Facing Entrepreneurs

Start-Up and Planning Issues 568Identifying Environmental Opportunities and CompetitiveAdvantage 568Researching the Venture's Feasibility—Generatingand Evaluating Ideas 571Researching the Venture's Feasibility—Competitors 572Researching the Venture's Feasibility—Financing 573

Planning the Venture—Developing a Business Plan 574

Organizing Issues 575Legal Forms of Organization , 575Organizational Design and Structure 578Human Resource Management Issues in EntrepreneurialVentures 578Stimulating and Making Changes 579

The Importance of Continuing Innovation 580

Leading Issues 58OPersonality Characteristics of Entrepreneurs 580Motivating Employees Through Empowerment 581

The Entrepreneur as Leader 582

Controlling Issues 583Managing Growth 583Managing Downturns 585Exiting the Venture 586Managing Personal Life Choices and Challenges 586

Endnotes 589

Name Index 635

Organization Index

Glindex 656

Photo Credits 671

652

Documents

Global Edition Stephen P. ROBBINS Mary COULTER