MODERN MANAGEMENT - docview1.tlvnimg.comdocview1.tlvnimg.com/.../ph12_certo_modernmgt12e1_6664.pdf · PART 1Introduction to Modern Management 2 Chapter 1 Introducing Modern Management:

MODERN MANAGEMENTC O N C E P T S A N D S K I L L S

Steinmetz Professor of ManagementRoy E. Crummer Graduate School of Business

Rollins College

Dean’s Council of 100 ScholarsW. P. Carey School of Business

Arizona State University

PRENTICE HALL Boston Columbus Indianapolis New York San Francisco Upper Saddle River AmsterdamCape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi

Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

T w e l f t h E d i t i o n

Samuel C. Certo S. Trevis Certo

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Library of Congress Cataloging-in-Publication DataCerto, Samuel C.

Modern management: concepts and skills/Samuel C. Certo, S.Trevis Certo.—12th ed.p. cm.

Includes bibliographical references and index.ISBN 978-0-13-217631-6

1. Management. 2. Industrial management. 3. Social responsibility of business.4.Technological innovations. I. Certo, S.Trevis. II.Title.

HD31.C4125 2012658—dc22

2010034070

10 9 8 7 6 5 4 3 2 1

Samuel C. CertoTo Mimi: My compass for right living

S. Trevis CertoTo the Certos in the desert: Melissa, Skylar,

Lexie, and Landon

ISBN 10: 0-13-217631-9ISBN 13: 978-0-13-217631-6

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Contents

Preface xAbout the Authors xxi

PART 1 Introduction to ModernManagement 2

Chapter 1 Introducing Modern Management:Concepts and Skills 2

CHALLENGE CASE: Universal Opens Harry PotterTheme Park 3

Exploring Your Management Skill 4

The Importance of Management 4The Management Task 5

� How Managers Do It: Did Home Depot Overpay itsCEO? 6

The Role of Management 6Defining Management 7The Management Process: Management Functions 7Management Process and Goal Attainment 8Management and Organizational Resources 9� How Managers Do It: Achieving Effectiveness at

Telstra Corporation 10The Universality of Management 11

The Theory of Characteristics 11

Management Skill: The Key to ManagementSuccess 11

Defining Management Skill 11Management Skill: A Classic View 11� How Managers Do It: Honing Cultural Skills at

Dean Foster Associates 12Management Skill: A Contemporary View 12Management Skill: A Focus of This Book 13� Class Discussion Highlight: Modern Research and

Management Skill 15Management Careers 15

A Definition of Career 15Career Stages, Life Stages, and Performance 16Promoting Your Own Career 17Special Career Issues 18CHALLENGE CASE SUMMARY 20

Management Skill Activities 21

Chapter 2 Managing: History and CurrentThinking 26

CHALLENGE CASE: Handling Competitors at Burger King 27


The Classical Approach 28Lower-Level Management Analysis 28� How Managers Do It: Getting Efficient at Pace

Productivity 30

iii

Comprehensive Analysis of Management 32Limitations of the Classical Approach 33

The Behavioral Approach 34The Hawthorne Studies 34Recognizing the Human Variable 35The Human Relations Movement 35� How Managers Do It: Building a “People”

Environment at SAS 35� Class Discussion Highlight: Modern Research and

Comprehensive Management Skill 36

The Management Science Approach 36The Beginning of the Management ScienceApproach 36Management Science Today 37Characteristics of Management ScienceApplications 37

The Contingency Approach 38The System Approach 38

Types of Systems 38Systems and “Wholeness” 39The Management System 39� How Managers Do It: Tracking Customer Opinion

with ReviewPro 40Information for Management System Analysis 40

Learning Organization: A New Approach? 41CHALLENGE CASE SUMMARY 42


PART 2 Modern Management Challenges 50

Chapter 3 Corporate Social Responsibility, Ethics,and Sustainability 50

CHALLENGE CASE: Verizon’s Commitment to SocialResponsibility 51


Fundamentals of Social Responsibility 52� How Managers Do It: Managing Responsibility at Arch

Chemicals 52The Davis Model of Corporate SocialResponsibility 53Areas of Corporate Social Responsibility: GoingGreen 54Varying Opinions on Social Responsibility 54� Research Highlight: Does Social Responsibility Help

a Company’s Bottom Line? 55Conclusions About the Performance of SocialResponsibility Activities by Business 56

Social Responsiveness 57Determining Whether a Social Responsibility Exists 58Social Responsiveness and Decision Making 58Approaches to Meeting Social Responsibilities 58

Social Responsibility Activities and ManagementFunctions 60

Planning Social Responsibility Activities 60Organizing Social Responsibility Activities 60Influencing Individuals Performing Social ResponsibilityActivities 61Controlling Social Responsibility Activities 61� How Managers Do It: Responding Responsibly to

Stakeholders at Volcom, Inc. 62Business Ethics 62

A Definition of Ethics 63Why Ethics Is a Vital Part of Management Practices 63A Code of Ethics 64Creating an Ethical Workplace 66Following the Law: Sarbanes–Oxley ReformStandards 67

Sustainability 68Defining Sustainability 68Defining a Sustainable Organization 69� How Managers Do It: Building a Sustainable

Organization at PepsiCo 69Why Sustainability? 69Steps for Achieving Sustainability 70CHALLENGE CASE SUMMARY 72


Chapter 4 Management and Diversity 80CHALLENGE CASE: Siemens Focuses on GlobalDiversity 81


Defining Diversity 82The Social Implications of Diversity 82

Advantages of Diversity in Organizations 83Gaining and Keeping Market Share 83� How Managers Do It: Profiting Through Diversity at

Safeway 83Cost Savings 83Increased Productivity and Innovation 84Better-Quality Management 84

Challenges That Managers Face in Working withDiverse Populations 85

Changing Demographics 85Ethnocentrism and Other Negative Dynamics 86� How Managers Do It: Legal Outreach Feeds the

Diversity Pipeline 87Negative Dynamics and Specific Groups 87� How Managers Do It: Minorities and Diversity at

Morgan Stanley 88

Strategies For Promoting Diversity inOrganizations 90

Promoting Diversity Through Hudson InstituteStrategies 90Promoting Diversity Through Equal Employment andAffirmative Action 91Promoting Diversity Through OrganizationalCommitment 92Promoting Diversity Through Pluralism 93

� Class Discussion Highlight: Modern Research andDiversity Skill 94

The Role of the Manager 96Planning 96Organizing 96Influencing 96Controlling 97Management Development and Diversity Training 97CHALLENGE CASE SUMMARY 100


Chapter 5 Managing in the Global Arena 108CHALLENGE CASE: Wal-Mart Facing Global Problems inJapan 109


Managing Across the Globe: Why? 110Fundamentals of International Management 110

� How Managers Do It: Going Global at JP MorganChase 111

Categorizing Organizations by InternationalInvolvement 112

Domestic Organizations 112International Organizations 113Multinational Organizations: The MultinationalCorporation 113Defining the Multinational Corporation 113� How Managers Do It: Building Global Market

Share at BRK Electronics 114Complexities of Managing the MultinationalCorporation 114Risk and the Multinational Corporation 116The Workforce of Multinational Corporations 116� Class Discussion Highlight: Modern Research and

Global Management Skill 118Management Functions and MultinationalCorporations 118

Planning in Multinational Corporations 119Organizing Multinational Corporations 122Influencing People in Multinational Corporations 124Controlling Multinational Corporations 126� How Managers Do It: Controlling Costs

at Kimberly-Clark 126Transnational Organizations 127

International Management: Special Issues 127Maintaining Ethics in International Management 127Preparing Expatriates for Foreign Assignments 128CHALLENGE CASE SUMMARY 129


Chapter 6 Management andEntrepreneurship 138

CHALLENGE CASE: Google Entrepreneurs Win Big 139


Fundamentals of Entrepreneurship 140� Class Discussion Highlight: Modern Research and

Entrepreneurship Skill 141

iv Contents

Opportunities 142Types of Opportunities 142Opportunity Identification 143� How Managers Do It: Identifying Opportunities at

Miller Farm 143Opportunity Evaluation 144Opportunity Exploitation 145� How Managers Do It: Exploiting Opportunities at

Advantage Fitness Products 145Financing Exploitation 146

Corporate Entrepreneurship 147Social Entrepreneurship 148

� How Managers Do It: Helping Third-WorldEntrepreneurs at Grameen Bank 148

How Do Commercial and Social EntrepreneurshipDiffer? 149Success Factors in Social Entrepreneurship 150CHALLENGE CASE SUMMARY 150


PART 3 Planning 158

Chapter 7 Principles of Planning 158

CHALLENGE CASE: Quality Bicycle Products Plans for theFuture 159


General Characteristics of Planning 160Defining Planning 160Purposes of Planning 160� How Managers Do It: Affirmative Planning at

Whole Foods Market 161Planning: Advantages and PotentialDisadvantages 161Primacy of Planning 161� Class Discussion Highlight: Modern Research and

Planning Skill 162

Steps in the Planning Process 162� How Managers Do It: Planning to Give Back to

Communities at Target Corporation 164The Planning Subsystem 164

Organizational Objectives: Planning’sFoundation 165

Definition of Organizational Objectives 165

Areas for Organizational Objectives 167

Working with Organizational Objectives 167

� How Managers Do It: “Going Back to the Basics”at MySpace 168

Guidelines for Establishing Quality Objectives 169

Management by Objectives (MBO) 169Factors Necessary for a Successful MBO Program 170

MBO Programs: Advantages and Disadvantages 170

Planning and the Chief Executive 171Final Responsibility 171

Planning Assistance 171

Contents v

The Planner 171Qualifications of Planners 172

Evaluation of Planners 172

CHALLENGE CASE SUMMARY 173


Chapter 8 Making Decisions 180CHALLENGE CASE: Making Difficult Decisions at NBCUniversal 181


Fundamentals of Decisions 182Definition of a Decision 182Types of Decisions 182The Responsibility for Making OrganizationalDecisions 183� How Managers Do It: Making Business Decisions at

Green Queens 184Elements of the Decision Situation 185� How Managers Do It: Trusting Employees to Make

Decisions at ShopRite 186The Rational Decision-Making Process 186Identifying an Existing Problem 187� How Managers Do It: Addressing—and

Eliminating—Barriers at Molson 187Listing Alternative Solutions 188Selecting the Most Beneficial Alternative 188� Class Discussion Highlight: Modern Research and

Decision-Making Skill 189Implementing the Chosen Alternative 189Gathering Problem-Related Feedback 190

Bounded Rationality 190Decision Making and Intuition 190

Decision-Making Heuristics and Biases 190Decision-Making Conditions: Risk andUncertainty 190

Decision-Making Tools 191Probability Theory 192

Decision Trees 192

Group Decision Making 193Advantages and Disadvantages of Using Groups toMake Decisions 193

Processes for Making Group Decisions 194

Evaluating Group Decision-Making Processes 195



Chapter 9 Strategic Planning: Strategies, Tactics,and Competitive Dynamics 202

CHALLENGE CASE: Samsung Plans for the Future 203


Strategic Planning 204Fundamentals of Strategic Planning 204

Strategic Management 205

� How Managers Do It: Achieving Global Efficienciesat Kraft 208

� Class Discussion Highlight: Modern Research andPlanning Skill 210

� How Managers Do It: Pursuing Growth byAcquisition at Black & Decker 215

Tactical Planning 216Comparing and Coordinating Strategic and TacticalPlanning 216

Competitive Dynamics 217� How Managers Do It: Competing for Smartphone

“Bandwidth” at HP 217CHALLENGE CASE SUMMARY 219


Chapter 10 Plans and Planning Tools 226CHALLENGE CASE: Microsoft Plans for SmallBusinesses 227


Plans: A Definition 228Dimensions of Plans 228

� How Managers Do It: Planning for Expansion atNationwide Children’s Hospital 228

Types of Plans 229

� How Managers Do It: Creating Sustainability Policyat H&M 230

� Class Discussion Highlight: Modern Research andPlanning Skill 231

Why Plans Fail 232

Planning Areas: Input Planning 232

� How Managers Do It: Overcoming CulturalObstacles in HR Planning at Raba 234

Planning Tools 235Forecasting 235

Scheduling 239



PART 4 Organizing 248

Chapter 11 Fundamentals of Organizing 248CHALLENGE CASE: Sony Organizes for Success 249


Definitions of Organizing and Organizing Skill 250

The Importance of Organizing 250� How Managers Do It: Developing Managers at

General Electric 251The Organizing Process 251

Classical Organizing Theory 252Weber’s Bureaucratic Model 253� How Managers Do It: Eliminating Bureaucracy at

General Motors 253Division of Labor 253Structure 254� How Managers Do It: Restructuring at

EnergySolutions 261

vi Contents

� Class Discussion Highlight: Research forDeveloping Organizing Skill 263



Chapter 12 Responsibility, Authority, andDelegation 272

CHALLENGE CASE: Toyota to Delegate Authority 273


Responsibility 274� How Managers Do It: Accepting Responsibility for

Actions at Goldman Sachs 274The Job Description 274Dividing Job Activities 275Clarifying Job Activities of Managers 276

Authority 277Authority on the Job 277Acceptance of Authority 278Types of Authority 278� How Managers Do It: Exercising Functional

Authority at Kroger Company 280Accountability 281

Delegation 281Steps in the Delegation Process 281Obstacles to the Delegation Process 282Eliminating Obstacles to the Delegation Process 282Centralization and Decentralization 283� Class Discussion Highlight: Modern Research and

Responsibility and Delegation Skill 283� How Managers Do It: Reaping the Benefits of

Decentralization at Johnson & Johnson 284CHALLENGE CASE SUMMARY 286


Chapter 13 Human Resource Management 294

CHALLENGE CASE: Cisco Recruits the Best Minds in China 295


Defining Appropriate Human Resources 296Steps in Providing Human Resources 296

Recruitment 296� How Managers Do It: Recruiting at the “Invest in

America” Alliance 301Selection 302Training 304� How Managers Do It: Investing in Training

Programs at South Coast Health System 305Performance Appraisal 307� Class Discussion Highlight: Modern Research and

Human Resources Skill 308� How Managers Do It: Using a New Performance

Appraisal System at Aetna 309CHALLENGE CASE SUMMARY 310


Chapter 14 Organizational Change: Stress,Conflict, and Virtuality 318

CHALLENGE CASE: Wrigley Continues to Change 319


Fundamentals of Changing an Organization 320Defining Changing an Organization 320Change Versus Stability 321

Factors to Consider When Changing anOrganization 321

The Change Agent 322Determining What Should Be Changed 322� How Managers Do It: Making Technological

Change at University Health System 323The Kind of Change to Make 323� How Managers Do It: Implementing People

Change at Caterpillar, Inc. 324Individuals Affected By the Change 326� Class Discussion Highlight: Modern Research and

Organizational Change Skill 327Evaluation of the Change 328

Change and Stress 328Defining Stress 329The Importance of Studying Stress 329Managing Stress in Organizations 329

Change and Conflict 331Defining Conflict 331Strategies for Settling Conflict 332

Virtuality 333Defining a Virtual Organization 334Degrees of Virtuality 334The Virtual Office 334� How Managers Do It: Managing a Virtual Office at

OnSite Consulting 335CHALLENGE CASE SUMMARY 336


Contents vii

� How Managers Do It: Increasing Listening atMcDonald’s 360



Chapter 16 Leadership 368CHALLENGE CASE: Iwata Faces Many Different Issues atNintendo 369


Defining Leadership 370Leader Versus Manager 370

The Trait Approach to Leadership 371The Situational Approach to Leadership: A Focus onLeader Behavior 372

Leadership Situations and Decisions 372� Class Discussion Highlight: Modern Research and

Leadership Skill 377Leadership Behaviors 377

Leadership Today 384Transformational Leadership 384� How Managers Do It: Ben & Jerry’s as

Transformational Leaders 384Coaching 385Superleadership 385Servant Leadership 387� How Managers Do It: Servant Leadership at

Zappos.com 387Entrepreneurial Leadership 388� How Managers Do It: Developing Entrepreneurial

Leaders at Disney 388CHALLENGE CASE SUMMARY 389


Chapter 17 Motivation 398CHALLENGE CASE: Motivation Savvy Management atBristol-Myers Squibb Ensures Cutting-Edge InternetPresence 399


The Motivation Process 400Defining Motivation 400Process Theories of Motivation 400� Class Discussion Highlight: Modern Research and

Motivation Skill 401� How Managers Do It: Addressing Pay Inequity at

American Airlines 403Content Theories of Motivation: Human Needs 404� How Managers Do It: Achievement Motivation at

C. Crane 406Motivating Organization Members 407

The Importance of Motivating OrganizationMembers 407Strategies for Motivating Organization Members 407� How Managers Do It: Distributing Incentives at

Comarco 414CHALLENGE CASE SUMMARY 415


PART 5 Influencing 344

Chapter 15 Influencing and Communication 344CHALLENGE CASE: Jetstar Airways Soars onCommunication 345


Fundamentals of Influencing 346Defining Influencing 346

The Influencing Subsystem 346

Emotional Intelligence 348

Communication 350Interpersonal Communication 350

� How Managers Do It: Dealing with IncreasingNeeds For Information at the White House 351

Interpersonal Communication in Organizations 356

� How Managers Do It: Podcasts EnhanceDownward Communication at Ericsson 356

� Class Discussion Highlight: Modern Research andCommunication Skill 358

Chapter 18 Groups and Teams 424CHALLENGE CASE: Teamwork Spreads at Xerox 425


Groups 426Kinds of Groups in Organizations 426

Formal Groups 426

� How Managers Do It: Committee for Recruitmentat Red Robin Gourmet Burgers 428

Informal Groups 431

Managing Work Groups 432Determining Group Existence 432

Understanding the Evolution of Informal Groups 433

Teams 435Groups Versus Teams 435

� How Managers Do It: Buidling a Team atRenaissance Executive Forums 435

Types of Teams in Organizations 436

Stages of Team Development 437Team Effectiveness 438

� Class Discussion Highlight: Modern Research andTeam Skill 440

Trust and Effective Teams 440� How Managers Do It: Building Trust at

Burberry 440CHALLENGE CASE SUMMARY 441


Chapter 19 Managing Organization Culture 450CHALLENGE CASE: BP’s Attempt to Establish a SafetyCulture Failed 451


Fundamentals of Organization Culture 452Defining Organization Culture 452The Importance of Organization Culture 453

Functions of Organization Culture 453� How Managers Do It: Amending the Code of

Conduct at Tocquigny 453Types of Organization Culture 454Building a High-Performance OrganizationCulture 456

� Class Discussion Highlight: Modern Research andOrganization Culture Skill 459

Keeping Organization Culture Alive and Well 459Establishing a Vision of Organization Culture 459� How Managers Do It: Modifying Innovative

Cultural at 3M 461Building and Maintaining Organization CultureThrough Artifacts 462Integrating New Employees into the OrganizationCulture 464� How Managers Do It: Recruiting for the Best Fit at

Jones Day 466Maintaining the Health of Organization Culture 466CHALLENGE CASE SUMMARY 467


viii Contents

Chapter 20 Encouraging Creativity andInnovation 476

CHALLENGE CASE: Fostering Creativity and Innovation atHormel Foods 477


Creativity 478Defining Creativity 478Importance of Creativity in Organizations 478Creativity in Individuals 478� How Managers Do It: Promoting Creativity at

Activision 479Increasing Creativity in Organizations 480� How Managers Do It: Supporting Employee

Creativity at Coca-Cola Company 482Innovation 483

Defining Innovation 483� How Managers Do It: Innovating for Success at

Amazon 483Linking Innovation and Creativity 484� Class Discussion Highlight: Modern Research and

Creativity and Innovation Skill 485The Innovation Process 485

Catalyst for Creativity and Innovation: Total QualityManagement 487

Essentials of Total Quality Management (TQM) 488Creative Ideas Based on TQM Expertise 493CHALLENGE CASE SUMMARY 494


PART 6 Controlling 500

Chapter 21 Controlling, Information, andTechnology 500

CHALLENGE CASE: Sperry Van Ness: Harnessing Technologyfor Business Success 501


The Fundamentals of Controlling 502Defining Control 502Defining Controlling 502� How Managers Do It: Establishing Standards at

General Electric 505� How Managers Do It: Using Technology to Support

Planning at Stein Mart 507Power and Control 507

A Definition of Power 507Total Power of a Manager 508Steps for Increasing Total Power 508Making Controlling Successful 509

Essentials of Information 509Factors Influencing the Value of Information 510Evaluating Information 512

Information Technology 513The Information System (IS) 513

Describing the IS 514Managing Information Systems 516

Contents ix

� How Managers Do It: Scaling Data Systems forNew Users at Sage 516

� Class Discussion Highlight: Modern Research andControlling Skill 518



Chapter 22 Production and Control 526CHALLENGE CASE: Delta Attempts to BoostProductivity 527


Production 528Defining Production 528Productivity 528� How Managers Do It: Boosting Productivity

Through Smart Grid Technology at DukeEnergy 529

Quality and Productivity 529� How Managers Do It: Balancing Quality and Low

Prices at Wal-Mart 531Automation 532Strategies, Systems, and Processes 533

Operations Management 533Defining Operations Management 533Operations Management Considerations 534� How Managers Do It: Filling the Pipeline at

Chrysler 538

Operations Control 538Just-in-Time Inventory Control 539Maintenance Control 540Cost Control 540Budgetary Control 540Ratio Analysis 542Materials Control 542� Class Discussion Highlight: Does Quality Control

Matter? 543Selected Operations Control Tools 544

Using Control Tools to Control Organizations 544Inspection 544Management by Exception 544Management by Objectives 545Break-Even Analysis 545Other Broad Operations Control Tools 548CHALLENGE CASE SUMMARY 549


Exploring Your Management Skill Answers 556Glossary 557Photo Credits 568Name Index 569Subject Index 573

Preface

Managers of today continue to face new opportunities and challenges. These opportunities include muchpublicized tasks like Florida’s Universal Studios opening a new Harry Potter attraction and Apple encour-aging technology innovation beyond the iPad and the iPhone. At the same time, other companies faceintense challenges, such as BP’s task of cleaning up an oil well leak in the Gulf of Mexico. Perhaps becausethese opportunities and challenges are so daunting, managers today arguably have the ability to earn higherfinancial rewards than at any other time in history.

This 12th edition of the Modern Management Learning Package, this text plus its ancillaries, continues arecognized and distinctive tradition in management education that has extended more than 30 years. As inall previous editions, this current edition of the Modern Management Learning Package has focused on a singleobjective: maximizing student learning of critical management concepts.All revisions reflect instructor andstudent feedback regarding ways to refashion the package to further enhance student learning. Starting withthe text, the following sections explain each major component of this revision.

New to This EditionProfessors and students need and deserve textbooks that are modern. In this context, modern involvesadding the latest concepts and empirical research as well as including the most recent examples of manage-ment in the business world. Modern also refers to how the text material is presented—the pedagogy usedto help students learn the concepts.This edition of the Modern Management Learning Package, this text and itsancillaries, is undoubtedly modern in terms of both management concepts and pedagogy. Overall, thispackage includes:

� Substantial revision of Chapter 3 “Social Responsibility, Ethics, and Sustainability.” We have added newcoverage on sustainability.

� Substantial revision of Chapter 9 “Strategic Planning: Strategies,Tactics, and Competitive Dynamics.”New coverage of competitive dynamics has been added.

� Half of the chapter-introductory Challenge Cases are new to this edition.� Half of the chapter-ending Concluding Cases are new to this edition.� We have added a new How Managers Do It feature. Each chapter includes at least three such features.� Approximately half of the Research Highlights are new to this edition.� A new Key Terms section has been added at the end of each chapter.� Sequencing of pedagogical features like Target Skill, Learning Objectives, and Exploring Your

Management Skill has been improved in all chapters to enhance student learning.� Half of the VideoNet Exercises are new to this edition.

More detail on each of these new features is integrated within the following discussion.

Text: Theory OverviewDecisions about which concepts to include in this revision were difficult. Such decisions were heavily influ-enced not only by colleague and student feedback, but also by information from accrediting agencies suchas The Association to Advance Collegiate Schools of Business (AACSB), professional manager associationssuch as the American Management Association (AMA), and academic organizations like the Academy ofManagement.

Overall, management theory in this edition is divided into the following six main sections:Introduction to Management, Modern Management Challenges, Planning, Organizing, Influencing, andControlling.The following sections discuss the changes we made in this edition to continue the tradition ofstressing the modern in Modern Management.

Part One: Introduction to Modern ManagementThis section contains the foundation concepts necessary to obtain a worthwhile understanding of management.

� Chapter 1, “Introducing Modern Management: Concepts and Skills” This chapter exposes students towhat management is and gives insights about how to build their careers.This chapter also pinpoints

x

management skills emphasized throughout the book and sets the stage for learning managementconcepts and developing related skills. Given high student interest, the chapter-opening case on HarryPotter and Universal Studios has been extensively revised.Also, new management compensation datahas been added to give students a realistic view of recent management pay levels.A new extendedexample of achieving efficiency and effectiveness at Telstra,Australia’s largest telecommunicationscompany, was added to help students see the relevance of chapter concepts.A new experiential exer-cise was added at the end of the chapter to help students gain insight on gauging the progress of acareer.A new VideoNet Exercise exploring management roles at azTeen Magazine was also added.

� Chapter 2, “Managing: History and Current Thinking” This chapter presents several fundamental,but different, ways managers can perceive their jobs.The work of management pioneers likeFrederick W.Taylor, Frank and Lillian Gilbreth, and Henry L. Gantt is highlighted. Students aregiven insights into how to combine the work of management pioneers into a more comprehensiveview of management. New discussion on the impact of Taylor’s work on unions and product qualityhas been added. More depth on the work of the Gilbreths has also been added. A new extendedillustration of how to build human relations into an organization is based on events at SAS, theworld’s largest privately held software company. Another illustration of how to track customeropinions focuses on ReviewPro, software that allows management to track and organize opinions ofhotel customers. A new experiential exercise was added to help students better understand theimpact of a time study job on career development. A new concluding case on present-day chal-lenges at the New York Times has been added. A new VideoNet Exercise exploring the rewards andchallenges of being a manager at Campus MovieFest was also added.

Part Two: Modern Management ChallengesThis section helps students focus on understanding major challenges that modern managers face. Detail oneach chapter in this section follows.

� Chapter 3, “Corporate Social Responsibility, Ethics, and Sustainability” This chapter discusses theresponsibilities managers have to society and how business ethics applies to modern management.Major revision to this chapter is the addition of a new topic: sustainability.This chapter defines sustain-ability and a sustainable organization and discusses the triple bottom line, reasons why organizationsshould become sustainable, and steps to follow for building sustainable organizations.A new introduc-tory Challenge Case on Verizon, a new Research Highlight on the impact of social responsibility onthe organization’s bottom line, and a new example of how PepsiCo builds sustainability have all beenadded to maximize chapter newness and freshness.A new career experiential exercise encouragesstudents to explore how communicating about social responsibility activities can impact careers.

� Chapter 4, “Management and Diversity” This chapter defines diversity, explains the advantages ofpromoting diversity in organizations, outlines ways in which managers can promote it, and discussessome key challenges and dilemmas managers face in attempting to build a diverse workforce. A newChallenge Case on Siemens and global diversity has been added. Other new additions for this editioninclude coverage of Muslims in American society, an extended example of diversity in the legal pro-fession, discussion of how Morgan Stanley highlights diversity information, and about how WalgreensCompany actively hires workers with disabilities. A new experiential exercise focuses on gender biasand a woman’s career. A new VideoNet Exercise on diversity in organizations was also added.

� Chapter 5, “Managing in the Global Arena” This chapter covers domestic versus international,multinational, and transnational organizations.The chapter also emphasizes expatriates, repatria-tion, and international market agreements.The introductory Challenge Case on Wal-Mart andJapan has been updated. New discussion regarding JP Morgan’s attempts to target business inBrazil, China, and India has also been added. A new illustration of Kimberly-Clark controllingglobal operational costs also appears. Students will also see newly updated information regardingU.S. investment abroad—where investment in the United States has been originating and whereU.S. investment in foreign countries has been focused. A new experiential exercise focuseson raising students’ sensitivity to the types of topics they must study to build a global career. Anew chapter-ending case on Jarden’s global reach has also been added.

� Chapter 6, “Management and Entrepreneurship” This chapter focuses on the discovery, evaluation,and exploitation of business opportunities.We have added extensive examples describing entrepre-neurial efforts in the agricultural, financial, and health and fitness industries.The Challenge Case on

Preface xi

Google has been updated to reflect some of the company’s latest efforts.We have also included anew Research Highlight reviewing the primary reasons why entrepreneurs start new businesses.Thechapter includes a new chapter-ending case on Heritage Auction Galleries, an entrepreneurial firmthat sells collectibles all over the world. Finally, the chapter includes a new VideoNet exercise basedon Boston Boxing and Fitness.

Part Three: PlanningThis section elaborates on planning as a primary management function.

� Chapter 7, “Principles of Planning” This chapter details the primary concepts involved with planning.The chapter includes a new Challenge Case detailing the planning efforts at Quality Bicycle Products.The chapter also includes new examples illustrating the role of planning in a diverse set of companiesincluding Target, ConocoPhillips, and MySpace.The chapter concludes with a new VideoNet exerciseillustrating how managers plan at Kaneva.

� Chapter 8, “Making Decisions” This chapter details the primary concepts involved with decisionmaking.The chapter begins with a new Challenge Case summarizing the decision that NBC execu-tives made to replace Conan O’Brien with Jay Leno as host of “The Tonight Show.”We also includeda new Research Highlight examining how timely information improves decision making.We incorpo-rate new content discussing the role of hubris and overconfidence in understanding executive deci-sion making. Finally, the chapter includes new examples illustrating the role of decision making inthe recycling and retailing industries.

� Chapter 9, “Strategic Planning: Strategies,Tactics, and Competitive Dynamics” This chapter was exten-sively revised to include the latest research on strategic planning. In addition to the chapter’s existingcoverage of strategies and tactics, this chapter now includes an in-depth discussion of competitivedynamics.This new section on competitive dynamics helps students understand how and why firms actand react when competing with their rivals. Specifically, we introduce the framework suggesting that afirm’s awareness, motivation, and capabilities influence its competitive actions.We introduce an exam-ple of the rivalry between Amazon.com and Barnes & Noble to illustrate how these concepts influencecompetitive actions.The chapter includes a new Challenge Case detailing the role of strategic planningin understanding the success of Samsung Electronics.The chapter concludes with a new VideoNetExercise on Nom Nom.

� Chapter 10, “Plans and Planning Tools” This chapter details the fundamental tools that help improveplanning success.This chapter includes a new Challenge Case on Microsoft to help students betterunderstand how planning tools can improve organizational effectiveness.We also included a diverseset of examples to illustrate how planning tools assist both non-profit organizations (e.g., NationwideChildren’s Hospital) as well as more prominent companies such as H&M and Apple.The chapterconcludes with a new VideoNet Exercise that describes how employees at Triple Rock Brewingemploy planning tools.

Part Four: OrganizingThis section discusses organizing activities as a major management function.

� Chapter 11, “Fundamentals of Organizing” This chapter details the key concepts involved with organi-zation.The chapter includes new examples illustrating the importance of organization for companiessuch as General Electric, General Motors, and EnergySolutions.We also included in this chapter a newResearch Highlight examining how organizational structure influences the ability of companies tomass customize their products for customers.This example also provides a discussion of the distinc-tions between organic versus mechanistic organizational structures.The chapter concludes with a newchapter-ending case describing the challenges involved with 3M’s organizational structure.

� Chapter 12, “Responsibility,Authority, and Delegation” This chapter details the importance of responsi-bility, authority, and delegation in managerial effectiveness.The chapter begins with a new ChallengeCase summarizing the roles of responsibility, authority, and delegation in understanding the qualitychallenges that recently troubled Toyota.The chapter also includes new examples illustrating how theseimportant concepts influenced managerial effectiveness at Goldman Sachs and Johnson & Johnson.

� Chapter 13, “Human Resource Management” This chapter covers the primary concepts involved inunderstanding effective human resource management. New examples have been added to illustratea variety of issues in human resource management. For instance, new examples highlight the

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Preface xiii

practices Intel uses to recruit new employees as well as the tactics used by Health South when lay-ing off employees.We also included a new Research Highlight illustrating how the timing of a joboffer (i.e., how soon after an interview a job offer was made to a candidate) influences the likeli-hood that a candidate accepts the offer.This chapter concludes with a new chapter-ending casedescribing how Raising Cane’s employed social media to attract and hire new employees.

� Chapter 14, “Organizational Change: Stress, Conflict, and Virtuality” This chapter emphasizes waysin which managers change organizations and the stress-related issues that can accompany such action.Coverage also emphasizes building alternative work situations, communicating successfully in virtualoffices, and handling change-related conflict. New extended examples of organizational change focuson changing a data technology system at University Health Systems, people change at Caterpillar, andidentifying workplace bullying. New coverage has also been added on “storytelling” as a technique forinitiating change. A new experiential exercise allows students to explore the role of change in careermanagement. A new chapter-ending case focuses on change at P&G. A new VideoNet Exerciseexploring change at homestarrunner.com was also added.

Part Five: InfluencingThis section discusses ways managers should deal with people. Reflecting the spirit of AACSB guidelines,encouraging thorough coverage of human factors in business curriculum, the influencing section is quitecomprehensive.

� Chapter 15, “Influencing and Communication” This chapter introduces the topic of managing people,defines interpersonal communication, and presents organizational communication as the primaryvehicle managers use to interact with people.A new introductory Challenge Case was added. Inaddition, more coverage of emotional intelligence has been added. New extended examples on com-munication strategy at the White House and the use of podcasts for communication at Ericsson havealso been newly added. New emphasis in this chapter explores informal communication during aneconomic downturn and the relationship between trust in a manager and the manager’s credibility asa communicator.The new experiential exercise for this chapter focuses on the relationship between amanager’s personal communication philosophy and his or her career.The end-of-chapter VideoNetExercise focuses on communication at Zifty.com.

� Chapter 16, “Leadership” This chapter highlights more traditional concepts, such as the Vroom-Yetton-Jago leadership model, the path–goal theory of leadership, and the life-cycle theory of leadership.Coverage also includes more recently developed and evolving concepts such as servant leadership, trans-formational leadership, coaching, super-leadership, and entrepreneurial leadership.The new introductoryChallenge Case for this chapter is on Sotoru Iwata, the president of Nintendo. New research coveragefocuses on the relationship between leader traits and charismatic leadership, and leader flexibility and“quick wins.” New extended examples feature transformational leadership at Ben & Jerry’s and servantleadership at Zappos.com.We also added a new Research Highlight examining the role of transforma-tional leadership in understanding group performance.The new career experiential exercise for thischapter helps students explore the role of leadership opportunities within an organization and choosingto take a job within that organization.The newly designed concluding case is “Oprah Leads an Empire.”

� Chapter 17, “Motivation” This chapter defines motivation, describes the motivation process, and providesuseful strategies managers can use in attempting to motivate organization members. Both content andprocess theories of motivation are discussed in detail. New extended examples of how American Airlinesaddresses pay inequity, how entrepreneur Bob Crane handles achievement motivation, and distributingincentives at Comarco are all included to help students see how chapter concepts can impact real man-agers. Research findings related to Theory X–Theory Y, the relationship between job satisfaction andeconomic recession, the findings of others that are seemingly consistent with Herzberg’s ideas, job rota-tion, and communicating about incentive programs have been added to enrich chapter content.This chap-ter includes a new Research Highlight examining how goal-setting may influence the motivation—andperformance—of individuals.The new career experiential exercise helps students explore the relationshipbetween punishment and career development.The new case for this chapter is “Motivation at United Way.”

� Chapter 18, “Groups and Teams” This chapter emphasizes managing clusters of people as a means ofaccomplishing organizational goals. Coverage focuses on managing teams. Coverage also focuses ongroups versus teams, virtual teams, problem solving, self-managed and cross-functional teams, stages ofteam development, empowerment, the effectiveness of self-managed teams, and factors contributing toteam effectiveness. An extended example of how committees function focuses on the committee for

xiv Preface

recruitment at Red Robin Gourmet Burgers. Another such example focuses on building teams atRenaissance Executive Forums. New coverage discusses groupthink, the relationship between trust andteam effectiveness, and integrating informal groups within formal organization structure.We also addeda new Research Highlight that discusses how personality type may influence the extent to which anindividual is able to influence group decision making.The new career-oriented experiential exercise forthis chapter helps students explore the location of a first job and its impact on their careers.The newlydesigned concluding case for this chapter focuses on team building at Best Buy.

� Chapter 19, “Managing Organization Culture” The chapter opens with an extensively revised case onBP that focuses on an oil leak in the Gulf of Mexico and the company’s attempt to establish an organiza-tion culture emphasizing safety. Major topics include defining organization culture, the importance ofculture, and building a high-performance organization culture. Special discussion focuses on cultural arti-facts: organizational values, myths, sagas, language, symbols, ceremonies, and rewards. New contentincludes comments on the difficulty in defining a particular culture, what beekeeping can teach us aboutbuilding values within an organization, and the impact of economic turbulence on organizational social-ization. New extended examples illustrate issues related to changing a code of conduct at Tocquigny andrecruiting within a law firm to provide new employees who fit the organization culture.We also includeda new Research Highlight discussing how aspects of organizational culture influence employee turnover.The new career experiential exercise for this chapter emphasizes the impact of organization culture onjob choice.The new concluding case designed for this chapter explores organization culture and Cintas.

� Chapter 20, “Encouraging Creativity and Innovation” The chapter details new research on creativityand innovation and updates the efforts of the most innovative companies in America.The chapteralso includes a new example illustrating the importance of creativity for Activision, a video gamedeveloper.We also added a new example illustrating how Amazon.com continues to innovate andchange its overall business model. A new Research Highlight in this chapter highlights the importantlink between creativity and innovation in entrepreneurial firms.The chapter concludes with a newcase describing the importance of innovation for Inventables.

Part Six: ControllingThis section presents control as a major management function. Major topics include fundamentals of con-trol, controlling production, and information technology.

� Chapter 21, “Controlling, Information, and Technology” The chapter opens with a new Challenge Casediscussing how Sperry Van Ness, a commercial real estate brokerage, employs controlling, information,and technology to improve operational efficiency and effectiveness.To better understand these con-cepts, we also include new examples illustrating how companies like Stein Mart and Sage use the latestinformation technologies to improve operations.We also include the most recent research available toexpand our discussion of power in the organizational context.The chapter concludes with a newVideoNet Exercise demonstrating how Platinum Autobody uses information technology.

� Chapter 22, “Production and Control” We updated the Challenge Case in this chapter to reflect thecontrol issues that surround Delta’s recent merger with Northwest.We also included examplesillustrating how Duke Energy, Chrysler, and Domino’s implement controls to improve operationaleffectiveness.The chapter concludes with a new VideoNet Exercise illustrating the roles of produc-tion and control at Sound in Motion.We also included a new chapter-ending case to highlight howMichael’s on East uses various controls to reduce costs.

Modern Management 12th edition: The SkillsFrom a pedagogy standpoint, the 12th edition of Modern Management continues its unique focus in themarketplace of developing students’ management skills across all of the primary management functions. Eachchapter opens by identifying a specific management skill on which the chapter focuses. The remainder ofthe chapter contains a number of purposefully placed features designed to help students develop that skill.

This focus on skill development is consistent with the Association to Advance Collegiate Schools ofBusiness (AACSB), which provides higher education professionals with sound standards for maintaining excel-lence in management education.AACSB standards indicate that excellence in modern management educationis achieved when students acquire both knowledge about management concepts and skill in applying thatknowledge.According to these standards, management educators must help students understand and appre-ciate both the “why” of management as well as the “how” of management.

Preface xv

The following sections discuss pedagogical features in this text that help students learn managementtheory and how to apply it.

1. Chapter Target Skill: Each chapter opens by identifying and defining the target management skillemphasized in that chapter. By focusing on this target skill early in the chapter, students immediatelyhave a context for learning chapter concepts.As an example of a chapter target skill, see the definition ofcorporate social responsibility skill on page 50.

2. Learning Objectives: For each chapter, a list of learning objectives follows the Chapter Target Skill.Theseobjectives flow from the chapter target skills to help students further focus on learning critical chapter con-cepts. See page 2 for an example of how a chapter target skill and learning objectives work together to helpstudents focus their learning on how to make decisions.

3. Challenge Case: Each chapter opens with an introductory Challenge Case.The purpose of a ChallengeCase is to introduce students to real challenges faced by real managers and to demonstrate the usefulnessof chapter concepts and related management skills in meeting those challenges. Each case summarizes aset of issues for a manager within a company and asks students how they would resolve the issues. Overhalf the cases in this edition are new or updated. New cases in this edition focus on companies such asBest Buy, United Way, and Harpo Productions.Turn to page 451 to see this edition’s new introductoryChallenge Case on BP.

4. How Managers Do It: New to this edition, each chapter contains two or three features calledHow Managers Do It. This feature shows students concrete steps practicing managers have actuallytaken that are consistent with chapter concepts.This feature focuses on companies such as 3M,Zappos, and Caterpillar. For a sample of this feature, see “Committee for Recruitment at Red RobinGourmet Burgers” on page 428.

5. Research and Class Discussion Highlights: Each chapter includes a “Research Highlight” or“Class Discussion Highlight” that focuses on recent research related to chapter content.These high-lights include specific questions to help students better understand the implications of recent man-agement research on chapter content and management skills.These questions are designed primarilyfor in-class discussion but could be used for out-of-class study. Half of the highlights are new to thisedition. New highlights cover such topics as organizational culture, recruiting tactics, and team deci-sion making. For a sample of this feature, see “Modern Research and Human Resources Skill:TheTiming of Job Offers” on page 308.

6. You and Your Career: Each chapter contains an Experiential Exercise that helps students understandthe relationship between the targeted skill of the chapter and the development of their own careers.This feature includes a number of questions designed to help students appreciate the importance ofmanaging their own careers.To see a sample You and Your Career exercise turn to page 23.

7. Challenge Case Summary: Each chapter ends with a Challenge Case Summary.This sectionprovides extensive narrative on how chapter concepts relate to issues in the chapter-openingChallenge Case.To better understand this pedagogical feature, see the Challenge Case Summary forthe BP introductory case on page 467.

8. Management Skill Activities: Each chapter ends with a rich array of learning activities that helpsstudents better understand management concepts and develop skills in applying those concepts.Specific activities are listed and explained below.A. Understanding Management Concepts: This section helps students review and understand

chapter concepts.1. Know Key Terms is a section in which key terms in a chapter are listed along with page

numbers on which they are discussed. For an example Know Key Terms section, see keyterms in the Strategic Planning chapter on page 220.

2. Know How Management Concepts Relate is a section containing essay questions relatedto chapter material.These questions help students focus on the interrelationships of chapterconcepts and how they relate to the management process. For the Influencing andCommunication chapter, see a sample Know How Management Concepts Relate on page 362.

B. Developing Management Skills: This chapter-ending section contains many activities thatfocus on helping students develop skills related to chapter content.1. Exploring Your Management Skill: Part 1. This exercise starts the Developing

Management Skill section of each chapter.Taken before studying the chapter, Part 1 is atrue-false, multiple-choice test (self-scored or electronically-scored) that helps students toassess their level of expertise in a chapter target skill before studying the chapter.The questionsfocus on how a manager in a Challenge Case might apply chapter content to organizational

issues. For an example of Exploring Your Management Skill: Part 1, check out page 266 inthe Fundamentals of Organizing chapter.

2. Exploring Your Management Skill: Part 2. This exercise is actually repeating the sameExploring Your Management Skill: Part 1 test after studying the chapter. Students retake thetest in Part 2 to see the impact of studying and to assess their learning as encouraged inAACSB guidelines on assurance of learning. For an example of Exploring Your ManagementSkill: Part 2, check out page 267 in the Fundamentals of Organizing chapter.

3. Your Management Skills Portfolio. An activity at the end of each chapter is speciallydesigned to allow students to demonstrate management skill learned in that chapter.Instructors may choose to have students turn in hard or electronic copies of thisassignment. In addition, instructors may ask students to present their completedportfolios in class. If completed online, a student can accumulate this evidence and print a portfolio covering as many chapters as desired, to help win a job during anemployment interview. See “Delegating Basketball Duties at Texas A&M” on page 289 as an example of a Your Management Skills Portfolio.

4. Experiential Exercises. Each chapter concludes with two types of experiential exercises.Type one is specially designed to help students develop knowledge and skill related to chaptercontent. For an example of this type of experiential exercise, see Analyzing Study Results onpage 419 of the Motivation chapter.

Type two is an exercise that focuses on helping students use chapter content to bettermanage their own careers.These exercises are called You and Your Career. A sample of thistype of experiential exercise, can be found on page 154 of the Management andEntrepreneurship chapter.

5. Cases. Each chapter concludes with two cases.The first concluding case is based on thechapter’s introductory Challenge Case. Students are given a series of discussion questionsthat stimulate further discussion of the Challenge Case. Page 448 contains an example ofsuch questions related to “Teamwork Spreads at Xerox,” the Challenge Case for the Groupsand Teams chapter.

The second concluding case is specifically designed to illustrate real-life management issuesand the steps necessary to face those issues. Half of these specially designed cases are new to thisedition.An example of this type of case, new to this edition, is “Best Buy’s Extreme TeamBuilding” on page 448 of the Groups and Teams chapter.

6. VideoNet Exercises. Each chapter ends with a unique learning tool called a VideoNet Exercise.This exercise begins with students watching a video of an actual company and discussing chaptercontent as it relates to the company featured in the video. Next, students enrich what they’velearned by completing an Internet activity—an online exploration of the company featured in thevideo. Half of the VideoNet Exercises are new to this edition. For a sample VideoNet exercise, see“Production and Control: Sound in Motion” on page 553 of the Production and Control chapter.

Modern Management: The Student Learning ProcessStudents often ask professors to suggest the best way to study to maximize learning. By using the componentsof Modern Management in a conscientious and systematic fashion, students can build their knowledge aboutmanagement concepts and their skill to apply it.Although the components of Modern Management are flexibleand can be used for many different study processes, one suggested study process is discussed below.

As shown in Figure 1, students can start chapter study by experiencing Exploring Your ManagementSkill: Part 1.This activity will introduce students to concepts and skills emphasized in the chapter and helpthem assess how much they know in these areas before studying the chapter.

Once students have been introduced via Exploring Your Management Skill: Part 1, they can startlearning management concepts.They learn concepts by reading and studying the chapter and checking theirprogress in meeting the learning objectives stated at the beginning of the chapter as well as being able toanswer essay questions at the end of the chapter. By checking their learning progress, students can pinpointareas in which further study is needed before moving forward.

Once students are satisfied that they have learned chapter content, they can experience Exploring YourManagement Skill: Part 2. This exercise will reemphasize the knowledge and skills focus in the chapter andgive students feedback about how much they’ve learned in the chapter. If students are not satisfied withtheir feedback, they can restudy material to improve.

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REFLECT ONKNOWLEDGE

ANDSKILLS

REFLECT ONKNOWLEDGE

ANDSKILLS

LEARNCONCEPTS

LEARN SKILLS

Exploring YourManagement Skill:

Part 1

Read a chapter

Have you metchapter learning

objectives?

Yes

Yes

No

No

Can you answerthe essay questionsat end of chapter?

Exploring YourManagement Skill:

Part 2

Perform assignedskills activities

Cases

1. Target management skill2. Challenge Case Summary

Review:

ManagementSkills

Portfolio

VideoNetExercises

ExperientialExercises

FIGURE 1A systematic method formaximizing learning when studyingModern Management

xviii Preface

When students are satisfied with this feedback, they can focus more on learning management skillsrelated to chapter content. Students focus on learning how to apply management concepts by performingapplication exercises assigned by professors and referring to chapter content as often as necessary to fur-ther clarify concepts and how to apply them. Students might also work on exercises independently and dowork not assigned by the professor. Application exercises can include the Management Skills Portfolio,Experiential Exercises, Cases, and VideoNet Exercises.

Instructor/Student SupplementsThe Modern Management Web Site—New to This EditionThe Modern Management author Web site (www.twocertos.com) is new to this edition and a unique featurefor principles of management textbooks.This site provides professors using Modern Management with a richarray of content aimed at making the text as close to real-time as possible. Content on the site includes fea-tures like experiential exercises, videos, podcasts, and research updates. By integrating this content withthe text, professors can deliver courses that are content appropriate and current. The Modern ManagementWeb site is maintained by the authors of the text, who personally choose and include the content that bestcomplements and continuously updates text content.

Because instructors around the world teach courses and concepts at different times, the authors designedthis site so instructors can quickly identify and use relevant content when they need it.The site allows instruc-tors to search the entries by either chapter or content type.This design allows instructors to access contentavailable for each teaching topic quickly and easily as needs arise.

Instructor Resource CenterAt the Instructor Resource Center, www.pearsonhighered.com/irc, instructors can access a variety of print,digital, and presentation resources available with this text in downloadable format. Registration is simple andgives you immediate access to new titles and new editions. As a registered faculty member, you can down-load resource files and receive immediate access to and instructions for installing course management con-tent on your campus server. In case you ever need assistance, our dedicated technical support team is readyto help with the media supplements that accompany this text.Visit http://247.pearsoned.com for answersto frequently asked questions and toll-free user support phone numbers.

The following supplements are available for download to adopting instructors:

� Instructor’s Manual� Test Item File� TestGen (test-generating program)� PowerPoint Slides

Videos on DVD—Video segments that illustrate the most pertinent topics in management today andhighlight relevant issues that, demonstrate how people lead, manage, and work effectively. Contact yourPearson representative for the DVD.

CourseSmart eTextbook—CourseSmart is an exciting new choice for students looking to savemoney. As an alternative to purchasing the printed textbook, students can purchase an electronic ver-sion of the same content. With a CourseSmart eTextbook, students can search the text, make notesonline, print out reading assignments that incorporate lecture notes, and bookmark important pas-sages for later review. For more information, or to purchase access to the CourseSmart eTextbook,visit www.coursesmart.com.

MyManagementLab (www.mymanagementlab.com) is aneasy-to-use online tool that personalizes course content

and provides robust assessment and reporting to measure individual and class performance. All of theresources that students need for course success are in one place—flexible and easily adapted for your stu-dents’ course experience. Some of the resources include an eText version of all chapters, quizzes, videoclips, simulations, assessments, and PowerPoint presentations that engage your students while helping themstudy independently.

www.twocertos.com

www.pearsonhighered.com/irc

http://247.pearsoned.com

www.coursesmart.com

www.mymanagementlab.com

Preface xix

AcknowledgmentsThe overwhelming success of Modern Management has now continued for three decades. The ModernManagement Learning Package, this book and its ancillaries, has become a generally accepted academic stan-dard for high-quality learning materials in colleges and universities throughout the world.These materialshave been published in special “country editions,” serving the special needs of management students incountries like Canada and India. Modern Management has also been published in foreign languages includingPortuguese and Spanish and is commonly used in professional management training programs.

Obviously, we have received much personal satisfaction and professional recognition for the success ofthis text over the years. In truth, however, much of the credit for this success continues to rightfully belongto many of our respected colleagues. Many key ideas for text development and improvement have comefrom others. We’re grateful for the opportunity to recognize the contributions of these individuals andextend to them our warmest personal gratitude for their professional insights and encouragement through-out the life of this project.

For this edition, several colleagues made valuable contributions through numerous activities likereviewing manuscript and providing unsolicited ideas for improvement.These individuals offered differentviewpoints that required us to constructively question our work. Thoughtful comments, concern for stu-dent learning, and insights regarding instructional implications of the written word characterized the high-quality feedback we received.These individuals are:

Helen Davis, Jefferson CommunityCollege–Downtown Louisville

E. Gordon DeMeritt, Shepherd University

Theresa Freihoefer, Central OregonCommunity College

George Gannage,West Central TechnicalCollege

Wayne Gawlik, Joliet Jr. College

Ashley Geisewite, Southwest TennesseeCommunity College

Jon Matthews, Central Carolina CommunityCollege

Robert Morris, Florida State College ofJacksonville

Paul Robillard, Bristol Community College

Gisela Salas,Webster University, BarryUniversity, St. Leo University, University ofthe Rockies

Duanne Schecter, Muskegon CommunityCollege

M. Smas, Kent State University

Paul Thacker, Macomb Community College

Bob Waris, University of Missouri Kansas City

Many colleagues have made significant contributions to previous editions of this project that are stillimpacting this 12th edition. A list of such respected colleagues includes:

Don Aleksy, Illinois Valley College

Karen Barr, Penn State University

Dan Baugher, Pace University

Wayne Blue, Allegany College of Maryland

Elise A. Brazier, Northeast Texas CommunityCollege

Michael Carrell, Morehead State University

Lon Doty, San Jose State University

Megan Endres, Eastern Michigan University

Joyce Ezrow, Anne Arundel CommunityCollege

William Brent Felstead, College of the Desert

Robert Freeland, Columbia SouthernUniversity

Adelina Gnanlet, California State University

Joseph Goldman, University of Minnesota

Heidi Helgren, Delta College

Jo Ann Hunter, Community College ofAllegheny County

Steven E. Huntley, Florida CommunityCollege at Jacksonville

Robert E. Kemper, Northern ArizonaUniversity

Toni Carol Kind, Binghamton University

Dennis L. Kovach, Community College ofAllegheny County

Loren Kuzuhara, University of Wisconsin

Gosia Langa, University of Maryland

Theresa Lant, New York University

Maurice Manner, Marymount College

Michelle Meyer, Joliet Junior College

Marcia Miller, George Mason University

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MODERN MANAGEMENT - docview1.tlvnimg.comdocview1.tlvnimg.com/.../ph12_certo_modernmgt12e1_6664.pdf · PART 1Introduction to Modern Management 2 Chapter 1 Introducing Modern Management: