F u n d a m en tals
of M anagem ent
Essential Concepts and Applications
NINTH EDITION
GLOBAL EDITION
STEPHEN P. ROBBINS
San Diego State University
DAVID A. DECENZO
Coastal Carolina University
MARY COULTER
Missouri State University
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To m y wife, Laura
Steve
To m y fam ily who stands by me through thick and thin;
whose unwavering support is the best g ift anyone could receive.
Thanks for all you do to support me.
Dave
To Brooklynn and B la ke . . . w ith much love, Grandma.
M ary
Brief Contents
'
>
-fr •
_________________________________________________C________________
Part 1
Chapter 1
History
Module
Chapter 2
Chapter 3
Part 2
Chapter 4
Quantitative
Module
Chapter 5
Part 3
Chapter 6
Chapter 7
Career
Module
Chapter 8
Part 4
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Part 5
Chapter 14
Chapter 15
Entrepreneurship
Module
Glossary
Index
480
486
Introduction 24
Managers and Management 24
A Brief History of Management's Roots
The Management Environment 56
Integrative Managerial Issues 76
Planning 102
Foundations of Decision Making
102
Quantitative Decision-Making Aids
Foundations of Planning 142
Organizing 170
Organizational Structure and Design
Managing Human Resources 202
Building Your Career 238
Managing Change and Innovation
49
131
170
242
Leading 268
Foundations of Individual Behavior 268
Understanding Groups and Managing Work Teams
Motivating and Rewarding Employees 328
Leadership and Trust 356
Managing Communication and Information 384
Controlling 410
Foundations of Control 410
Operations Management 440
Managing Entrepreneurial Ventures 471
300
y
wrm
V
Contents
_________________________________ i__________ i
Highlighted content indicates that it is presented via a visual spread.
Preface
17
Instructor Supplements
Student Supplements
About the Authors
Part 1
History Module: A Brief History of
Management's Roots 49
19
20
Early Management
22
Introduction
C h a p te r 1
24
Managers and Management
W ho Are M anagers and W here Do They W ork?
Endnotes
28
28
60
61
61
62
Technology and the Manager's Job | Can T e ch n o lo g y
Im p ro v e th e W ay M a n a g e rs M anage? 63
A Question of Ethics
65
W H A T IS O R G A N IZ A T IO N A L C U L T U R E ?
33
How Can Culture Be Described?
35
Where Does Culture Come From?
36
36
66
67
67
H o w Does O rganizational C ulture A ffe c t Managers?
W hat Factors Are R eshaping and R edefining
How Does Culture Affect What Employees Do?
M anagem ent?
How Does Culture Affect What Managers Do?
37
Why Are Customers Important to the Manager's Job?
37
Technology and the Manager's Job | Is It S till M anaging
W hen W h a t Y o u 're M a n a g in g A re Robots? 38
Why Is Innovation Important to the Manager's Job?
39
Importance of Social Media to the Manager's Job
39
Importance of Sustainability to the Manager’s Job
40
Wrapping It U p ...
56
H ow Does the External E n viro n m e n t A ffe ct Managers?
31
32
Is the Manager's Job Universal?
A Question of Ethics
The Management Environment
From the Past to the Present 1981-1987-1991-Today
33
And the Survey Says...
2
How Has the Economy Changed?
29
31
W hy S tu dy M anagem ent?
C h a p te r
What Role Do Demographics Play?
3 W A Y S TO L O O K A T W H A T M A N A G E R S D O
Skills and Competencies
53
55
W h a t Is th e E xternal E n v iro n m e n t and W h y Is It
Im p o rta n t? 59
30
Management Roles Approach
52
27
From the Past to the Present 1588-1705-1911-Today
4 Functions Approach
51
Contemporary Approaches
24
How Are Managers Different from Nonmanagerial
Employees? 28
W hat Is M anagem ent?
50
Behavioral Approach
Quantitative Approach
What Three Characteristics Do All Organizations Share?
What Titles Do Managers Have?
49
Classical Approaches
40
Review
Chapter Summary 41 • Discussion Questions 41 •
Management Skill Builder] Political Skill 42 • Experiential
Exercise 44 • Case Application 1— Happier Employees -*■
Happier Customers = More Profit? 45 • Case Application 2—
Building a Better Boss 45 • Case Application 3— Saving the
World 47 • Endnotes 48
A nd the Survey Says...
68
68
68
69
Review
Chapter Summary 70 • Discussion Questions 70 •
Management Skill Builder | Understanding Culture 71 •
Experiential Exercise 72 • Case Application 1—China
Zhongwang 73 • Case Application 2— Not Sold
Out 74 • Case Application 3—Wild Ride 75 •
Endnotes 75
C h a p te r 3
Integrative Managerial Issues
76
W h a t Is G lo b a liza tio n and H ow Does It A ffe c t
O rganizations? 79
What Does It Mean to Be "Global"?
How Do Organizations Go Global?
80
80
9
10
C ontents
W H A T A R E T H E D IF F E R E N T T Y P E S OF G L O B A L
O R G A N IZ A T IO N S ? 81
W h a t Types o f D ecisions and D e cisio n -M a kin g C o n d itio n s
Do M anagers Face? 114
How Do Problems Differ?
114
What Do Managers Need to Know About Managing in a
Global Organization? 82
How Does a Manager Make Programmed
Decisions? 115
From the Past to the Present 1970s—1980s-Today
How Do Nonprogrammed Decisions Differ from
Programmed Decisions? 116
83
W ha t Does S ociety Expect fro m O rganizations and
M anagers? 85
A nd the Survey Says...
116
How Can Organizations Demonstrate Socially Responsible
Actions? 85
How Are Problems, Types of Decisions, and Organizational
Levellntegrated? 116
Should Organizations Be Socially Involved?
What Decision-Making Conditions Do Managers Face?
86
What Is Sustainability and Why Is It Important?
A nd the Survey Says...
H ow Do G roups M ake D ecisions?
87
88
W h a t Factors D ete rm in e Ethical and U nethical
B ehavior? 88
In What Ways Can Ethics Be Viewed?
When Are Groups Most Effective?
89
How Can Managers Encourage Ethical Behavior?
A Question of Ethics
89
91
What Types of Diversity Are Found in Workplaces?
A Question of Ethics
92
How Does National Culture Affect Managers' Decision
Making? 120
Chapter Summary 124 • Discussion Questions 124 •
Management Skill Builder | Being a Creative Decision
Maker 125 • Experiential Exercise 127 •
Case Application 7—The Business of Baseball 127 •
Case Application 2—Tasting Success 128 •
Case Application 3— Decision Making, Saudi Style 129 •
Endnotes 130
Chapter Summary 96 • Discussion Questions 96 •
Management Skill Builder] You-*’Being Ethical 97 •
Experiential Exercise 99 • Case Application 7— Dirty Little
Secret 99 • Case Application 2—Spy Games 99 •
Case Application 3— From Top to Bottom 100 •
Endnotes 101
C hapter 4
W h a t C o n te m p o ra ry D ecision-M aking Issues Do
M anagers Face? 120
Review
Review
Planning
Quantitative Module: Quantitative DecisionMaking Aids 131
102
Foundations of Decision Making
H ow Do M anage rs M ake Decisions?
105
What Defines a Decision Problem?
105
102
P ayoff M atrices
131
D ecision Trees
132
Break-Even A n a lysis
What Is Relevant in the Decision-Making Process?
106
Ratio A n a lysis
133
134
Linear P ro g ra m m in g
136
How Does the Decision Maker Weight the Criteria and
Analyze Alternatives? 106
Q ueuing T h e o ry
What Determines the Best Choice?
E conom ic O rd e r Q u a n tity M odel
108
What Happens in Decision Implementation?
108
What Is the Last Step in the Decision Process?
W H A T ARE THE 3 A P P R O A C H E S M A N A G E R S
C A N U S E T O M A K E D E C IS IO N S ? 110
111
From the Past to the Present 1945-1978-Today
Intuition and Managerial Decision Making
Technology and the Manager's Job |
D ecisions w it h T e c h n o lo g y 113
138
141
C h a p te r 5
Foundations of Planning
142
W h a t Is P la n n in g and W h y Do M a n a g e rs N eed to
Plan? 145
Why Should Managers Formally Plan?
145
What Are Some Criticisms of Formal Planning and How
Should Managers Respond? 146
110
Bounded Rationality
Endnotes
138
108
What Common Errors Are Committed in the DecisionMaking Process? 109
Rational Model
119
119
Why Are Creativity and Design Thinking Important in
Decision Making? 121
94
How Are Organizations and Managers Adapting to a
Changing Workforce? 94
Part 2
118
How Can You Improve Group Decision Making?
W h a t Is T o d a y's W o rkfo rce Like and H ow Does It A ffe ct
th e W ay O rg a n iza tio n s A re M anaged? 91
What Is Workplace Diversity?
117
What Are the Advantages and Disadvantages of Group
Decision Making? 117
112
112
M a k in g B etter
Does Formal Planning Improve Organizational
Performance? 147
W h a t Do M anagers Need to K n o w A b o u t S tra te g ic
M anagem ent?
147
117
11
Contents
What Is Strategic Management?
148
Why Is Strategic Management Important?
From the Past to the Present 1965-1967-1984-Present
148
W h a t Are S om e C o m m o n O rg anizational Designs?
What Are the Steps in the Strategic Management
Process? 149
What Strategic Weapons Do Managers Have?
Technology and the Manager's Job
|
150
151
What Contemporary Organizational Designs Can Managers
Use? 187
A nd the Survey Says...
152
Functional Strategy
How Do You Keep Employees Connected?
153
Technology and the Manager's Job
W o rld o f W o rk 191
155
How Do M anagers Set Goals and D evelop Plans?
155
What Types of Goals Do Organizations Have and How Do
They Set Those Goals? 155
From the Past to the Present 1954-1960s and 1970s-Present
157
What Types of Plans Do Managers Use and How Do They
Develop Those Plans? 158
A nd the Survey Says...
160
W h a t C o n te m p o ra ry P la n n in g Issues Do M an a g e rs
Face? 161
How Can Managers Plan Effectively in Dynamic
Environments? 161
How Can Managers Use Environmental Scanning?
162
Review
Chapter Summary 163 • Discussion Questions 163 •
Management Skill Builder | Being a Good Goal Setter 164 •
Experiential Exercise 166 •
Case Application 1— Flip
Flop 166 • Case Application 2—Primark Takes on Burberry
and Alexander McQueen 167 • Case Application 3—Shifting
Direction 168 •
Endnotes 169
Organizing
C hapte r 6
(1) What Is Work Specialization?
174
(2) What Is Departmentalization?
174
(3) What Are Authority and Responsibility?
(4) What Is Span of Control?
Size ->■ Structure
183
184
Technology -*■ Structure
Environment > Structure
Review
Chapter Summary 195 • Discussion Questions 195 •
Management Skill Builder | Increasing Your Power 196 •
Experiential Exercise 198 • Case Application 7—A New
Kind of Structure 198 • Case Application 2—Volunteers
Work 199 • Case Application 3—You Work Where? 200
Endnotes 201
C h a p te r 7
Managing Human Resources
What Is the Legal Environment of HRM?
206
From the Past to the Present 1913-Present
208
A Question of Ethics
209
H ow Do M anagers Id e n tify and Select C om petent
Em ployees? 209
209
184
211
212
How Do Managers Select Job Applicants?
212
H ow A re E m ployees P rovided w ith Needed Skills and
K now ledge? 216
Technology and the Manager's Job
D ig ita l HR 217
181
What Is Employee Training?
|
S ocial and
217
181
K E E P IN G G R E A T P E O P LE : 2 W A Y S
O R G A N IZ A T IO N S D O T H IS 2 2 0
Performance Management System
220
Should people be compared to one another or against a set of
standards? 220 • Traditional manager-employee perfor
mance evaluation systems may be outdated 222 • When
employee's performance is not up to par 222
Compensating Employees: Pay and Benefits
184
202
W h a t Is the H um an Resource M a n a g e m e n t Process and
W h a t Influences It? 205
3
180
W H A T C O N T IN G E N C Y V A R IA B L E S A F F E C T
S T R U C T U R A L C H O IC E ? 1 8 2
183
191
How Can Managers Design Efficient and Effective Flexible
Work Arrangements? 192
2B How Does a Manager Handle Layoffs?
176
181
Mechanistic OR Organic
The C hanging
How Are New Hires Introduced to the
Organization? 216
(5) How Do Centralization and Decentralization Differ?
(6) What Is Formalization?
|
2A How Do Organizations Recruit Employees?
W hat A re the S ix Key E lem ents in O rg anizational
Design? 173
Strategy -*•Structure
190
How Do You Build a Learning Organization?
1 What Is Employment Planning?
170
Organizational Structure and
Design 170
A Question of Ethics
190
How Do Global Differences Affect Organizational
Structure? 190
153
A Question of Ethics
Part 3
189
W hat A re T oday's O rganizational Design Challenges?
152
Competitive Strategy
186
What Traditional Organizational Designs Can Managers
Use? 186
IT and S tra te g y
W H A T S T R A T E G IE S D O M A N A G E R S U S E ?
Corporate Strategy
185
Compensation— Pay for doing a job
Employees benefits 224
222
222
•
Compensation—
•
12
Contents
W hat C o n te m p o ra ry HRM Issues Face M anagers?
How Can Managers Manage Downsizing?
A nd the Survey Says...
224
H ow Can M anagers Encourage In n o v a tio n in an
O rganization? 256
224
How Are Creativity and Innovation Related?
225
How Can Workforce Diversity Be Managed?
What Is Sexual Harassment?
W hat's Involved in Innovation?
225
How Can a Manager Foster Innovation?
226
What Is Workplace Spirituality?
How and Why Are Organizations Controlling HR Costs?
229
Review
Chapter Summary 231 • Discussion Questions 231 •
Management Skill Builder | Being An Effective Interviewer 232
Experiential Exercise 234 • Case Application 1—
Stopping Traffic 234 • Case Application 2—Resume
Regrets 235 • Case Application 3—HRM in the Hong Kong
Police Force 236 • Endnotes 237
Career Module: Building Your Career
Practice Makes Perfect
Stay Up to Date
Network
239
268
Foundations of Individual
Behavior 268
272
What Are the Three Components of an Attitude?
239
What Attitudes Might Employees Hold?
239
A nd the Survey Says...
240
274
275
How Can an Understanding of Attitudes Help Managers Be
More Effective? 275
240
240
W h a t Do M anagers Need to K n o w A b o u t
Personality? 276
241
Opportunities, Preparation, and Luck = Success
241
How Can We Best Describe Personality?
8
Managing Change and Innovation
W hat Is Change and H ow Do M anagers Deal w ith It?
Why Do Organizations Need to Change?
Who Initiates Organizational Change?
Can Personality Traits Predict Practical Work-Related
Behaviors? 278
245
A Question of Ethics
279
How Do We Match Personalities and Jobs?
247
280
Do Personality Attributes Differ Across Cultures?
247
From the Past to the Present 1943-1944-1947-Present
H ow Do M anagers M anage Resistance to Change?
Why Do People Resist Organizational Change?
A nd the Survey Says...
276
242
246
How Does Organizational Change Happen?
248
250
251
251
W h a t Is Perception and W h a t Influences It?
What Influences Perception?
282
282
283
How Can an Understanding of Perception Help Managers
Be More Effective? 285
From the Past to the Present 1927-1971-Present
W H A T R E A C T IO N D O E M P L O Y E E S H A V E TO
O R G A N IZ A T IO N A L C H A N G E ? 2 5 2
252
What are the symptoms of stress?
What Causes Stress?
253
Job-related factors
253
A Question of Ethics
253
Personal factors
Operant Conditioning
254
How Can Stress Be Reduced?
255
254
263
H O W D O L E A R N IN G T H E O R IE S E X P L A IN
B E H A V IO R ? 2 8 5
Social Learning Theory
•
281
How Can an Understanding of Personality Help Managers
Be More Effective? 281
How Do Managers Judge Employees?
What Are Some Techniques for Reducing Resistance to
Organizational Change? 251
What Is Stress?
273
Do Individuals' Attitudes and Behaviors Need to Be
Consistent? 274
Leverage Your Competitive Advantage
Chapter
273
273
What Is Cognitive Dissonance Theory?
It's OK to Change Jobs
272
W h a t Role Do A ttitu d e s Play in J o b Perform ance?
239
240
Don't Shun Risks
Leading
What Are the Goals of Organizational Behavior?
239
240
Seek a Mentor
Part 4
What Is the Focus of OB?
239
240
Stay Visible
Chapter Summary 261 • Discussion Questions 261 •
Management Skill Builder | Controlling Workplace Stress 262 •
Experiential Exercise 264 • Case Application 1—The Next Big
Thing 264 • Case Application 2—GM's Latest Model 265 •
Case Application 3— Stress Kills 266 • Endnotes 267
W h a t are th e Focus and G oals o f O rg a n iza tio n a l
B ehavior? 271
Take Responsibility for Managing Your Own Career
Develop Your Interpersonal Skills
260
Review
C h a p te r 9
238
238
Assess Your Personal Strengths and Weaknesses
Identify Market Opportunities
•
238
W h a t W as Career D e ve lo p m e n t Like, H istorically?
H ow Can I Have a S uccessful Career?
258
How Does Design Thinking Influence Innovation?
227
W h at Is Career D e ve lo p m e n t Like, Now?
257
257
Shaping Behavior
286
287
287
How Can an Understanding of Learning Help Managers Be More
Effective? 288
13
Contents
W h a t C o n te m p o ra ry OB Issues Face
M anagers?
4 E A R LY T H E O R IE S O F M O T IV A T IO N
289
How Do Generational Differences Affect the
Workplace? 289
Maslow's Hierarchy of Needs Theory
How Do Managers Deal with Negative Behavior in the
Workplace? 290
Herzberg's Two-Factor Theory
332
310
McGregor’s Theory X and Theory Y 311
311
McClelland's Three-Needs Theory
Review
Chapter Summary 291 • Discussion Questions 292 •
Management Skill Builder] Understanding Employee
Emotions 292 • Management Skill Builder \ Understanding
Employee Personality 293 • Experiential Exercise 296 •
Case Application 1— Great Place to Work 297 •
Case Application 2— Odd Couples 297 • Case Application 3—
Employees First 298 • Endnotes 299
313
H ow Do th e C o n te m p o ra ry T heories Explain
M o tiv a tio n ? 336
What Is Goal-Setting Theory?
From the Past to the Present
336
1959-1977-Today
How Does Job Design Influence Motivation?
What Is Equity Theory?
A Question of Ethics
337
338
339
340
How Does Expectancy Theory Explain Motivation?
C h a p te r 10
Understanding Groups and Managing
W ork Teams 300
W h a t Is a G roup and W h a t Stages o f D e ve lo p m e n t Do
G roups Go T hrou g h ? 303
What Is a Group?
A nd the Survey Says...
A Question of Ethics
Face?
304
How Does Country Culture Affect Motivation
Efforts? 344
305
306
Norms
306
Review
307
Status Systems
Group Size
How Can Managers Motivate Unique Groups of
Workers? 345
How Can Managers Design Appropriate Rewards
Programs? 346
306
Conformity
343
How Can Managers Motivate Employees When the
Economy Stinks? 344
304
5 M A J O R C O N C E P T S OF G R O U P B E H A V IO R
Roles
W h a t C u rre n t M o tiv a tio n Issues do M a n a g e rs
303
What Are the Stages of Group Development?
341
How Can We Integrate Contemporary Motivation
Theories? 342
Chapter Summary 349 • Discussion Questions 349
Management Skill Builder \ Being a Good
Motivator 350 • Experiential Exercise 353 •
Case Application 1— Passionate Pursuits 353 • Case
Application 2— Best Practices at Best Buy 354 • Case
Application 3— Searching For? 355 • Endnotes 355
307
308
Group Cohesiveness
308
From the Past to the Present 1951-Today
310
H ow are G roups T u rn e d in to E ffective Teams?
310
Are Work Groups and Work Teams the Same?
311
What Are the Different Types of Work Teams?
311
Technology and the Manager's Job
What Makes a Team Effective?
|
IT and Team s
C h a p te r
313
313
Leadership and Trust
What's Involved with Managing Global Teams?
317
319
The Leader: What Traits Do Leaders Have?
Chapter Summary 320 • Discussion Questions 320 •
Management Skill Builder \ Understanding How Teams
Work 321 • Management Skill Builder \ Understanding
Conflict Resolution 323 • Experiential Exercise 325 •
Case Application 1— Teaming Up for Take Off 325 • Case
Application 2—Toyota's Teams 326 • Case Application 3—
Intel Inside...and Far Away 326 • Endnotes 327
Ohio State studies
W h a t Is M o tiva tio n ?
331
A nd the Survey Says...
362
University of Michigan studies
Managerial Grid
362
362
362
362
W h a t Do The C o n tin g e n c y T h e o rie s o f Leadership
Tell Us? 363
What Was the First Comprehensive Contingency Model?
How Do Followers’ Willingness and Ability Influence
Leaders? 364
A nd the Survey Says...
366
How Participative Should a Leader Be?
331
359
360
The Behaviors: What Behaviors Do Leaders Exhibit?
University of Iowa studies
Motivating and Rewarding
Employees 328
359
W H A T D O E A R LY L E A D E R S H IP T H E O R IE S T E L L U S
A B O U T L E A D E R S H IP ? 3 6 0
Review
C h a p te r 11
356
316
W h a t C urre nt Issues Do M anagers Face in M anaging
Team s? 317
When Are Teams Not the Answer?
12
W ho A re Leaders, and W h a t Is Leadership?
From the Past to the Present 1951-1960-Today
How Can a Manager Shape Team Behavior?
•
How Do Leaders Help Followers?
367
366
363
14
Contents
W hat Is Leadership Like Today?
368
Review
What Do the Four Contemporary Views of Leadership
Tell Us? 368
A Question of Ethics
Chapter Summary 403 • Discussion Questions 403 •
Management Skill Builder | Being a Good Listener 404 •
Experiential Exercise 406 • Case Application 7— MXit
and Facebook in South Africa 406 • Case Application 2—
Banning E-Mail 407 • Case Application 3— Pizza, Politics,
and Papa 408 • Endnotes 409
371
What Issues Do Today's Leaders Face?
Technology and the Manager's Job
Leadership 372
|
371
V irtu a l
W hy Is T ru st the Essence o f Leadership?
A Final Thought Regarding Leadership
375
Part 5
376
Controlling
410
Review
Chapter Summary 377 • Discussion Questions 378
Management Skill Builder \ Being a Good Leader 378 •
Experiential Exercise 380 • Case Application 1—
Growing Leaders 380 • Case Application 2—Serving
Up Leaders 381 • Case Application 3— Leadership
Legacy 382 • Endnotes 383
•
Foundations of Control
C h a p te r 14
What Is Control?
Why Is Control Important?
A Question of Ethics
413
413
1 What Is Measuring?
Managing Communication and
Information 384
H ow Do M anagers C o m m u n ica te E ffectively?
3 What Managerial Action Can Be Taken?
Are Written Communications More Effective Than Verbal
Ones? 389
Is the Grapevine an Effective Way to Communicate?
From the Past to the Present —> 1953-2009-Today
389
389
390
Networked communication applications
C onfront?
396
421
422
423
424
425
Technology and the Manager's Job
E m ployees 426
397
|
421
Do Controls Need to Be Adjusted for Cultural
Differences? 425
397
FYEO: D ecoding
M o n ito rin g
What Challenges Do Managers Face in Controlling the
Workplace? 427
Review
398
399
How Does Knowledge Management Affect
Communication? 399
What's Involved with Managing the Organization's
Knowledge Resources? 400
C h a p te r 15
Operations Management
W h y Is O p erations M a n a g e m e n t Im p o rta n t to
What Role Does Communication Play in Customer
Service? 400
How Can We Get Employee Input and Why Should We?
|
Chapter Summary 431 • Discussion Questions 431 •
Management Skill Builder | Being a Good Disciplinarian 432 •
Management Skill Builder | Providing Good Feedback 434 •
Experiential Exercise 435 • Case Application 1—
Top Secret 436 • Case Application 2— Deepwater in Deep
Trouble 437 • Case Application 3— Baggage Blunders and
Wonders 438 • Endnotes 439
How Do We Manage Communication in an Internet
World? 398
A nd the Survey Says...
420
W h a t C o n te m p o ra ry C ontrol Issues Do M anagers
W h at C o m m u n ic a tio n Issues Do M anagers Face
Today?
419
When Does Control Take Place?
Keeping Track Using a Balanced Scorecard Approach
395
Technology and the Manager's Job
C o m m u n ic a tio n Ja rg o n 398
W h a t S h ould M anagers C ontrol?
Keeping Track of Employee Performance
394
Wireless communication applications
419
419
Keeping Track of Organization's Information
T E C H N O L O G Y A N D M A N A G E R IA L
C O M M U N IC A T IO N 3 9 5
Wireless Communication
A nd the Survey Says...
Keeping Track of Organization's Finances
How Can Managers Overcome Communication
Barriers? 393
Networked Communication
417
K E E P IN G T R A C K : W H A T G E T S C O N T R O L L E D ?
What Barriers Keep Communication from Being
Effective? 391
A Question of Ethics
415
2 How Do Managers Compare Actual Performance to
Planned Goals? 418
387
How Do Nonverbal Cues Affect Communication?
415
From the Past to the Present 1911-1913-1979-Today
387
How Does the Communication Process Work?
413
413
W h a t Takes Place as M anagers C ontrol?
C hap ter 13
410
W h a t Is C ontrol and W h y Is It Im p o rta n t?
O rganizations?
401
Why Should Managers Be Concerned with Communicating
Ethically? 402
443
What Is Operations Management?
443
1 How Do Service and Manufacturing
Firms Differ? 444
440
Contents
2 How Do Businesses Improve Productivity?
444
From the Past to the Present -> 1950-1981/1982-Today
446
3 What Role Does Operations Management Play in a
Company’s Strategy? 446
Entrepreneurship Module: Managing
Entrepreneurial Ventures 471
W h a t Is E ntrepreneurship?
471
W H A T IS V A L U E C H A IN M A N A G E M E N T A N D W H Y
IS IT IM P O R T A N T ? 4 4 7
W h o 's S ta rtin g E n trepreneurial Ventures?
What Is Value Chain Management?
W h a t P lanning Do E ntrepreneurs Need to Do?
Who has power in the value chain?
Goals of value chain management
447
W h a t Do E ntrepreneurs Do?
W hat's in a Full Business Plan?
448
449
How Does Value Chain Management Benefit Businesses?
How Is Value C hain M a n a g e m e n t Done?
449
471
472
472
473
W h a t Issues A re In vo lve d in O rganizing an E ntrepreneurial
V enture? 474
W hat Are the Legal Forms of Organization for Entrepreneurial
Ventures? 474
450
What Are the Requirements for Successful Value Chain
Management? 450
What Type of Organizational Structure Should Entrepreneurial
Ventures Use? 474
A nd the Survey Says...
What Human Resource Management (HRM) Issues Do
Entrepreneurs Face? 475
451
What Are the Obstacles to Value Chain
Management? 453
A Question of Ethics
W h a t Issues Do E ntrepreneurs Face in Leading an
E ntre p re n e u ria l V enture? 475
454
W hat C o n te m p o ra ry Issues Do M anagers Face in
M anaging O perations? 454
What Type of Personality Do Entrepreneurs Have?
How Can Entrepreneurs Motivate Employees?
1 What Role Does Technology Play in Operations
Management? 455
Technology and the Manager's Job
F actory o f th e F u tu re ! 455
|
2 How Do Managers Control Quality?
How Are Projects Managed?
15
How Can Entrepreneurs Be Leaders?
W e lco m e to th e
How Is Growth Managed?
Review
•
477
478
478
W hat's Involved with Exiting the Venture?
458
Chapter Summary 464 • Discussion Questions 464
Management Skill Builder | Being a Good Project
Manager 465 • Experiential Exercise 466 •
Case Application 1— Tragedy in Fashion 467 •
Case Application 2— Dreamliner Nightmare 468 •
Case Application 3— Stirring Things Up 469 •
Endnotes 470
477
W h a t C o n tro llin g Issues Do E n trepreneurs Face?
How Are Downturns Managed?
456
476
476
478
Why Is It Important to Think About Managing Personal Challenges
as an Entrepreneur? 478
Endnotes
479
Glossary
Index
480
486
Preface
___________________________ I
Welcome to the Ninth Edition of Fundamentals o f Management! Although much has changed
in the world since FOM was first published in 1994, we haven’t changed our commitment to
providing you with the most engaging and up-to-date introduction to management paperback
on the market. And how do we do this? By covering the essential concepts of management;
providing a sound foundation for understanding the key issues; offering a strong, practical
focus, including the latest research on what works for managers and what doesn’t; and doing
these with a writing style that you and your students will find interesting and straightforward.
This edition introduces a new and exciting design. We love the way it looks and the way
management concepts are presented! And we hope you do, too! It’s a self-contained learning
package. In addition to the end-of-chapter summaries and review questions, you can choose
from the chapter self-assessments, skills modules, hands-on manager’s inbox exercises, and
case applications. In addition, the text is supported by the most comprehensive Web site and
supplement package, although your students will find the essential elements they need to
understand and apply management concepts within the text itself. You have the choice about
how best to use the materials: text only, online only, or text and online. It’s your decision!
What Key Changes Have We Made in the Ninth Edition?
You might think that there wouldn't be much new information to put in a book...especially
a Ninth Edition! But that’s the great thing about a book that discusses managers and manage
ment! It’s always easy to find new material just by paying attention to what's happening in
the news! New issues and ideas are always confronting managers and w e’ve made sure to
cover hot topics such as social media, big data, and design thinking, to name a few.
Our biggest change in this edition is our brand new, exciting, and innovative chapter
openers— a common Management Myth and how this myth is just th a t...a myth! Students
often think that they already know a lot about m anagem ent... after all, it’s just common sense,
right? But management isn’t just common sense! When it comes to managing, much of what
passes for common sense is just plain wrong. So our new chapter openers grab students’ atten
tion by introducing common Management Myths and then debunking them. We think you’ll
like the student discussion these “myths” and “debunking” will generate!
Another key change affects our end-of-chapter material. After listening to what you were
telling us, we decided to provide you with three (yes, you read that right, THREE!) Case Applica
tions and we’ve moved them back to the end of the chapter. These Case Applications are a great
way to tell a current story about managers, management, and organizations and to involve students
in assessing a situation and answering questions about “how" and “why” and "what would you
do.” These Case Applications cover the gamut from Google and Yahoo! to Zara and Starbucks.
Also, based on feedback you gave us. we retained our complete, self-contained section on
developing management skills but m oved the skills material to the relevant chapters. It’s one
thing to know something. It’s another to be able to use that knowledge. The skill-building ex
ercises included at the end of each chapter help you apply and use management concepts. We
chose these 18 skills (some chapters have more than one) because of their relevance to devel
oping management competence and their linkage to one or more of the topic areas in this book.
Finally, w e've taken one section in each chapter and given it a completely new contem
porary and visually appealing look. The design of this selected material will reinforce key
18
Preface
topics and ideas and make it easy for students to read and to know what’s important from that
particular chapter section. We hope you like these! They were a lot of fun for us to develop and
design! Also, because today’s students are accustomed to visually rich environments, w e’ve
included additional visual presentations of material throughout the chapters to help engage
students with the material.
In addition to all these major changes, here is a chapter-by-chapter list of the topic addi
tions and changes in the Ninth Edition:
Chapter 1— Managers and Management
• New chapter opener— Management Myth/Debunked
• Streamlined material in From the Past to the Present box to
better focus on key concepts
• New presentation of material in section on What Managers Do
• New A Question of Ethics box
• New section on Importance of Social Media to the Manager’s
Job
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 are new
Chapter 2— The Managem ent Environment
• New chapter opener— Management Myth/Debunked
• New presentation of material in the From the Past to the
Present box feature
• Updated information on economic component of external
environment
• Revised Technology and the M anager’s Job box
• New A Question of Ethics box
• New presentation o f material in section on What Is
Organizational Culture?
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 are new
Chapter 3— Integrative Managerial Issues
• New chapter opener— Management Myth/Debunked
• New presentation o f material in section on What Are the
Different Types of Global Organizations?
• New A Question o f Ethics box
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— all new
Chapter 4— Foundations of Decision Making
• New chapter opener— Management Myth/Debunked
• New presentation of material in section on What Are the 3
Approaches Managers Use to Make Decisions?
• New A Question o f Ethics box
• New material on design thinking
• New material on big data
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications —2 new
Chapter 5— Foundations of Planning
• New chapter opener— Management Myth/Debunked
• New presentation of material in section on What Are Some
Criticisms of Formal Planning and How Should Managers
Respond?
• New material on social media as a strategic weapon
• New material on big data as a strategic weapon
• Streamlined material in From the Past to the Present box
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications — 2 new
Chapter 6— Organizational Structure
and Design
• New chapter opener— Management Myth/Debunked
• Clarified presentation of material on six key elements of
organizational design
• New A Question of Ethics box
• New presentation of material on What Contingency Variables
Affect Structural Choice?
• Streamlined material in From the Past to the Present box
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
Chapter 7— Managing Human Resources
•
•
•
•
New chapter opener—Management Myth/Debunked
Streamlined discussion of global HRM laws
New material on use of social media in HR
Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
Chapter 8— Managing Change and Innovation
• New chapter opener— Management Myth/Debunked
• New presentation of material in From the Past to the
Present box
Preface
• New presentation o f m aterial on W hat Reactions Do
Employees Have to Organizational Change?
• Added “Think About” questions to boxes
• New material on design thinking and innovation
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
19
Chapter 12— Leadership and Trust
• New chapter opener— Management Myth/Debunked
• New presentation of material on What Do Early Leadership
Theories Tell Us About Leadership?
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— all new
Chapter 9— Foundations of Individual
Behavior
Chapter 13— Managing Communication
and Information
• New chapter opener— Management M yth/Debunked
• New presentation of material on How Do Learning Theories
Explain Behavior?
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
• New chapter opener— Management Myth/Debunked
• New presentation of material on Technology and Managerial
Communication
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— all new
Chapter 10— Understanding Groups and
Managing W ork Teams
• New chapter opener— Management Myth/Debunked
• New presentation o f material on 5 M ajor Concepts of Group
Behavior
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
Chapter 11— Motivating and Rewarding
Employees
• New chapter opener— M anagement Myth/Debunked
• New presentation o f material on 4 Early Theories of
Motivation
• New A Question of Ethics box
• Special features highlighting important chapter material and
Chapter 14— Foundations of Control
• New chapter opener— Management Myth/Debunked
• New presentation of material on Keeping Track: What Gets
Controlled?
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
Chapter 15— Operations M anagement
• New chapter opener— Management Myth/Debunked
• New presentation of material on W hat Is Value Chain
Management and Why Is It Important?
• Special features highlighting important chapter material and
providing visual interest
• 3 Case Applications— 2 new
p ro v id in g visual in te re st
• 3 Case Applications— 2 new
Instructor Supplements
At the Instructor Resource Center, w w w .pearsongIobaleditions.com /R obbins, instructors
can access a variety of digital and presentation resources available with this text.
Registration is simple; contact your Pearson Sales Representative who will assign you
your login information. As a registered faculty member, you can download resource files and
receive immediate access to and instructions for installing course management content on your
campus server. In case you ever need assistance, our dedicated technical support team is ready
to help with the media supplements that accompany this text. Visit
for answers to frequently asked questions and toll-free user support phone numbers.
The following supplements are available for download to adopting instructors:
• Instructor’s Resource Manual
• Test Bank
20
Preface
• TestGen® Computerized Test Bank (test-generating program)
• PowerPoint Presentations
Video Library
MyLab— available for instructors and students, provides round the clock instant access to
videos and corresponding assessment and simulations for Pearson textbooks.
Contact your local Pearson representative to request access to either format
AACSB Learning Standards Tags in the Test Item File
Questions that test skills relevant to AACSB standards are tagged with the appropriate standard.
For example, a question testing the moral issues associated with externalities would receive the
ethical understanding and reasoning abilities tag from the AACSB categories. In addition, the
tagged questions may help to identify potential applications of these skills. This, in turn, may sug
gest enrichment activities or other educational experiences to help students achieve these goals.
Student Supplements
Self-Assessment Library (S.A.L.)
If you are interested in additional self-assessments for your students, this valuable tool in
cludes 67 individual self-assessment exercises that allow students to assess their knowledge,
beliefs, feelings, and actions in regard to a wide range of personal skills, abilities, and inter
ests. Provided scoring keys allow for immediate, individual analysis. Access is included as
part o f MvManagementLab.
Acknowledgments
Writing and publishing a textbook requires the talents of a number of people whose names
never appear on the cover. We'd like to recognize and thank a phenomenal team of talented
people who provided their skills and abilities in making this book a reality.
This team includes Kris Ellis-Levy, our senior acquisitions editor; Kelly Warsak, our
project manager; Erin Gardner, our senior marketing manager; Stephanie Wall, our editor in
chief; Nancy Moudry, our highly talented and gifted photo researcher; John Christiana, our
talented designer, who worked so hard to make this book as visually appealing as it is; and
Debbie Meyer, senior managing editor at Integra.
We also want to thank our reviewers— past and present— for the insights they have
provided us:
David Adams, Manhattanville College
Lorraine P. Anderson, M arshall University
Maria Aria, Camden Community College
Marcia Marie Bear, University o f Tampa
Barbara Ann Boyington, Brookdale Community College
Reginald Bruce, University o f Louisville
Jon Bryan. Bridgewater State University
Elena Capella, Universityt o f San Francisco
James Carlson, Manatee Community College
Pam Carstens, Coe College
Casey Cegielski, Auburn University
Michael Cicero, Highline Community College
Evelyn Delanee, Daytona Beach Community College
Kathleen DeNisco, Erie Community College, South Campus
Jack Dilbeck, Ivy Tech State College
Fred J. Dorn, Uni versity o f Mississippi
Michael Drafke, College o f DuPage
Myra Ellen Edelstein, Salve Regina University
Deborah Gilliard, Metropolitan State College, Denver
Robert Girling, Sonoma State University
Patricia Green, Nassau Community College
Gary Greene, Manatee Community College, Venice Campus
Kenneth Gross, The University o f Oklahoma
Jamey Halleck, Marshall University
Aaron Hines, SUNY New Paltz
Robyn Hulsart, Austin Peavy State University;
Todd E. Jamison, Chadron State College
Edward A. Johnson. University o f North Florida
Kayvan Miri Lavassani, North Carolina Central
Kim Lukaszewski, SUNY New Paltz
Brian Maruffi, Fordham University
.Mantha Vlahos Mehallis, Florida Atlantic University
Preface
Christine Miller, Tennessee Technological University
Diane Minger, Cedar Valley College
Kimberly K. Montney, Kellogg Community College
James H. Moore, Arizona State University
Dr. Clara Munson, Albertus Magnus College
Jane Murtaugh, College o f DuPage
Francine Newth, Providence College
Leroy Plumlee, Western Washington University
Pollis Robertson, Kellogg Community College
Cynthia Ruszkowski, Illinois State University
Thomas J. Shaughnessy, Illinois Central College
Andrea Smith-Hunter, Siena College
Martha Spears, Winthrop University
Jeff Stauffer, Ventura College
Kenneth R. Tillery, Middle Tennessee State University
Robert Trumble, Virginia Commonwealth University!
Philip Varca, University o f Wyoming
Margaret Viets, University o f Vermont
Brad Ward, Kellogg Community College
Lucia Worthington, University o f M aryland
University College
Seokhwa Yun, M ontclair State University
Pearson would like to thank and acknowledge the following people for their work on
the Global Edition:
Contributors:
Caroline Akhras, Notre Dame University
Kate Mottram, Coventry University
Reviewers:
Anil Singla, Gandhi Institute o f Business and Technology
Idris Gautama So, Binus University
Thank You!
Steve, Dave, and I would like to thank you for considering and choosing our book for your
management course. All of us have several years of teaching under our belt, and we know
how challenging yet rewarding it can be. Our goal is to provide you with the best resources
available to help you excel in the classroom!
A bout the Authors
I
{
■
'A
STEPHEN P. ROBBINS received his Ph.D. from the University o f
Arizona. He previously worked for the Shell Oil Company and
Reynolds Metals Company and has taught at the University
o f Nebraska at Omaha. Concordia University in Montreal,
the U niversity o f Baltimore. Southern Illinois University
at Edwardsville, and San Diego State University. He is
currently professor emeritus in management at San Diego
State.
Dr. Robbins’s research interests have focused on con
flict. power, and politics in organizations, behavioral deci
sion making, and the development of effective interpersonal
skills. His articles on these and other topics have appeared
in such journals as Business Horizons, the California Manage
ment Review, Business and Economic Perspectives, International
Management, Management Review, Canadian Personnel and Industrial
Relations, and The Journal o f Management Education.
Dr. Robbins is the w orld’s best-selling textbook author in the areas o f management and organi
zational behavior. His books have sold more than 6 million copies and have been translated into 20
languages. His books are currently used at more than 1,500 U.S. colleges and universities, as well as
hundreds o f schools throughout Canada, Latin America. Australia, New Zealand, Asia, and Europe.
Dr. Robbins also participates in masters track competition. Since turning 50 in 1993, h e's won 23
national championships and 14 world titles. He was inducted into the U.S. Masters Track & Field Hall of
Fame in 2005 and is currently the world record holder at 100 m and 200 m for men 65 and over.
D A V ID A. DECENZO (Ph.D., W est V irginia U niversity) is
president o f Coastal C arolina University in Conway, South
C arolina. In his capacity as president, Dr. D eCenzo is
responsible for the overall vision and leadership o f the
university. He has been at Coastal since 2002 when he
took over leadership o f the E. Craig Wall Sr. College of
Business. As president. Dr. DeCenzo has im plem ented a
com prehensive strategic planning process, ensured fiscal
accountability through policy and practice, and prom oted
assessm ent and transparency throughout the U niversity.
Since becom ing president in 2007, the U niversity’s enroll
ment has grown nearly 19 percent, the academ ic program has
expanded from 39 to 65 undergraduate degree program s and has
added six new m aster’s degree programs. Before joining the Coastal
faculty in 2002, he served as director o f partnership developm ent in the C ollege o f B usiness and
Econom ics at Towson U niversity in M aryland. He is an experienced industry consultant, corporate
trainer, and public speaker. Dr. D eCenzo is the author of num erous textbooks that are used widely at
colleges and universities throughout the United States and the world.
Dr. DeCenzo and his wife, Terri, have four children and reside in Pawleys Island, South Carolina.
A b o u t th e A u th o r s
M ARY C O U L T E R (Ph.D., University o f Arkansas) held different
jobs including high school teacher, legal assistant, and city govern
ment program planner before completing her graduate work. She
has taught at Drury University, the University o f Arkansas,
Trinity University, and Missouri State University. She is cur
rently professor emeritus o f management at Missouri State
University. In addition to Fundamentals o f Management, Dr.
Coulter has published other books with Pearson including
Management (with Stephen P. Robbins), Strategic Manage
ment in Action, and Entrepreneurship in Action.
When she’s not busy writing, Dr. Coulter enjoys putter
ing around in her flower gardens, trying new recipes, read
ing all different types o f books, and enjoying many different
activities with husband Ron, daughters and sons-in-law Sarah and
James, and Katie and Matt, and most especially with her two grand
kids, Brooklynn and Blake, who are the delights of her life!
23
Managers and
Management
Only those who
want to be managers
need to take a
course in management.
_______ I
© Rido/Fotoiia
Anyone who works
organizations work
and their boss’s behavior
by taking a course
in management.
ASSUME
for a moment that
common sense. Well, it's not! The study of
it's your first day
management is filled with insights, based on
in an introductory
extensive research, which are counterintui
physics class. Your instructor asks you to take
tive. And to reinforce this point, we open each
out a piece of paper and "describe Newton's
chapter of this book with a finding from that
second law of motion." What would your
chapter that runs counter to common sense.
reaction be? I expect most students would
Let's begin this chapter by debunking
respond with something like "How would I
the above common-sense myth: This state
know? That's why I'm taking this course!"
ment often surprises students majoring in
Now let's change the situation to the
subjects like accounting, finance, statistics,
first day in an introductory management
information technology, or advertising. Since
class. Your instructor asks you to write an
they don't expect to be managers, they see
answer to the question: "What traits does
spending a semester studying management
one need to be an effective leader?" When
as irrelevant to their career goals. Later in
we've asked this question of students on the
this chapter, w e'll explain why the study of
first day, we find that they're never at a loss
management is valuable to every student.
for an answer. Everyone seems to think they
So attention, accounting majors: You don't
know what makes a good leader.
have to be a manager, or aspire to be a man
Our example illustrates a popular myth
about the study of management: It's just
ager, in order to gain something from a man
agement course. •
L earn in g O u tcom es
Tell w ho managers are and where they work. p. 27
2
Define management, p. 30
3
Describe w h a t managers do. p. 31
4
Explain w hy it's important to study management, p. 36
5 Describe the factors that are reshaping and redefining management, p. 37
26
MyManagementLab®
© Im p ro v e Y o u r G ra d e !
W hen you see this icon, visit
www.mymanagementlab.com fo r activities that are
applied, personalized, and offer immediate feedback.
Although w e’d like to think that all managers are good at what they do, you may have dis
covered through jobs you’ve had that managers can be good at what they do or maybe not
so good, or even good one day and not so good the next! One thing you need to understand
is that all managers— including those in organizations where you’ve worked and in other
organizations— have important jobs to do. And this book is about the work they do. In this
chapter, we introduce you to managers and management: who they are. where they work, what
management is, what they do, and w'hy you should spend your time studying management.
Finally, w e’ll wrap up the chapter by looking at some important factors that are reshaping and
redefining management.
Who Are Managers and Where Do They Work?
There’s no pattern or prototype or standard criteria as
to who can be a manager. Managers today can be under
age 18 or over age 80. They may be women as well as
men, and they can be found in all industries and in all
countries. They manage entrepreneurial businesses, large
corporations, government agencies, hospitals, museums,
schools, and not-for-profit enterprises. Some hold top-level management jobs while others are
supervisors or team leaders. However, all managers share one common element: They work
in an organizational setting. An o rganization is a deliberate arrangement of people brought
together to accomplish some specific purpose. For instance, your college or university is an or
ganization as are the United Way, your neighborhood convenience store, the Dallas Cowboys
football team, fraternities and sororities, the Cleveland Clinic, and global companies such as
Nestlé, Nokia, and Nissan. These and all organizations share three common characteristics.
(See Exhibit 1-1.)
Tell who managers
are and where they
work.
o rg a n iz a tio n
A systematic arrangement of people brought
together to accomplish some specific purpose
E x h i b it 1 - 1 Three C h a ra cte ris tics of O rganizations
27