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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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ISBN 10: 1-292-05654-1

ISBN 13: 978-1-292-05654-8
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A catalogue record for this book is available from the British Library
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Printed and bound by Courier Kendalville in The United States of America


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



×