Management 9e plunket ather

MANAGEMENT

Meeting and Exceeding Customer Expectations
Ninth Edition


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MANAGEMENT

Meeting and Exceeding Customer Expectations
Ninth Edition

Warren R. Plunkett
Raymond F. Attner
Brookhaven College

Gemmy S. Allen
North Lake College


Management: Meeting and Exceeding Customer Expectations
Ninth Edition
Warren R. Plunkett, Raymond F. Attner, Gemmy S. Allen
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BRIEF CONTENTS
Part 1: Management Concepts
1.
2.
3.
4.

1

Management: An Overview 2
Management Thought: Past and Present 34
Management Ethics and Social Responsibility 62
Management’s Commitments to Quality and Productivity

Part 2: Planning and Decision Making
5. The Manager’s Environment
6. Planning and Strategy 152
7. Making Decisions 190

94

127

128

Part 3: Organizing

223

8. Organizing Principles 224
9. Organizational Design, Culture, and Change

262

Part 4: Staffing

313

10. Staffing the Workforce 314
11. Communication: Interpersonal and Organizational
12. Human Motivation 390

Part 5: Leading
13. Leadership 432

14. Team Management and Conflict

431
464

Part 6: Controlling

497

15. Information Management Systems 498
16. Control: Purpose, Process, and Techniques

Appendices
A. Operations Management 576
B. International Management 602
C. Succeeding in Your Organization

358

526

575
632

References 663
Glossary 675
Index 689
v

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CONTENTS
PART 1: MANAGEMENT CONCEPTS

1

Chapter 1: Management: An Overview

2

Introduction

4

Management and Managers

4

Organizational Need for Managers

5

The Manager’s Universe

6

The Need to Please Customers, 6
Global Applications: The Globalization of Wipro Ltd.

7

Managing Technology: Customer Relationship Management (CRM)

8

Ethical Management: Telemarketers Survive Do Not Call

9

The Need to Provide Leadership, 9 • The Need to Act Ethically, 10 •
The Need to Value Diversity in Their Employees, 10 • The Need
to Cope with Global Challenges, 11
Valuing Diversity: MTV Networks Adds Chief Diversity Officer (CDO)

13

Levels of Management

13

Top Management, 14 • Middle Management, 14 • First-Line
Management, 15 • Functional Managers, 15
Management Functions

17

Planning, 18 • Organizing, 19 • Staffing, 19 • Leading, 19 •
Controlling, 19

Functions and the Levels of Management

20

Top Management, 20 • Middle Management, 21 • First-Line
Management, 21
Management Roles

21

Interpersonal Roles, 21 • Informational Roles, 22 • Decisional Roles, 23 •
Roles and Managerial Functions, 23 • Roles and the Expectations of
Others, 23
Management Skills

23

Technical Skills, 23 • Human Skills, 25 • Conceptual Skills, 25 •
Skills and Levels of Management, 25
Management Myths and Realities

26

Evaluating a Manager’s Performance

27
vii


viii

Contents

Chapter 2: Management Thought: Past and Present

34

Introduction

36

History and Theory of Management

37

Value of History, 37 • Ancient History, 37 • Value of Theory, 37
Classical Management Theory

37

Classical Scientific School, 38
Valuing Diversity: From Equal Opportunity to Valuing Diversity

40

Classical Administrative School, 41
Behavioral Management Theory

43

Behavioral School Proponents, 43
Quantitative Management Theory

45

Operations Management, 46 • Management Information Systems, 47
Systems Management Theory

47

Systems School, 48 • Cumulative Energy of Synergy, 49
Contingency Management Theory

50

Quality Management Theory

51

Kaizen Approach, 51 • Reengineering Approach, 52
Ethical Management: How the Pursuit of Quality Can Alienate Customers

53

Major Contributors to Quality Management, 53
Managing Technology: Enterprise Resource Planning (ERP)

54

Global Applications: Government and Industry Cooperation in Japan

55

Chapter 3: Management Ethics and Social Responsibility

62

Introduction

64

Managing Ethically

64

Individuals and Ethical Conduct, 65
Managing Technology: Electronic Commerce Ethics

66

Leaders’ Ethics, 67
Organizational Influences on Ethical Conduct

67

Importance of Organizational Controls

68

Commitment of Top Management, 68 • Codes of Ethics, 68 •

Compliance Programs, 68
Global Applications: Bill and Melinda Gates Foundation

72

Legal Constraints, 73 • Ethical Dilemmas, 75 • Guidelines for Acting
Ethically, 76
Nature of Social Responsibility

77

Approaches to Social Responsibility, 78 • Responsibilities to
Stakeholders, 81
Valuing Diversity: Diversity’s Link to Social Responsibility—The Abbot Approach

82

Government Regulation: Pros and Cons, 83
Managing for Social Responsibility
Top Management Commitment, 85

85


Contents
Ethical Management: BuildingBlocks International, 1000 Challenge

ix
87

Social Audit, 87

Chapter 4: Management’s Commitments
to Quality and Productivity

94

Introduction

96

Quality, Productivity, and Profitability

97

Quality Function Deployment, 98
Global Applications: The Toyota Way

100

Cost-Effective Quality, 103
Managing Technology: Technologically Literate Managers

104

Productivity, 104 • Quality–Productivity–Profitability Link, 105
Improving Quality and Productivity

106

Ethical Management: Raytheon’s Approach to Quality and Ethics

107

Business Process Reengineering (BPR) Approaches, 108 • Commitments
at the Top, 109 • Commitments at the Middle, 113
Valuing Diversity: Empowerment at Toyota

114

Commitments at the Bottom, 115 • External Commitments, 116
Additional Internal and External Influences on Quality and Productivity

119

Internal Influences, 119 • External Influences, 120

PART 2: PLANNING AND DECISION MAKING

127

Chapter 5: The Manager’s Environment

128

Introduction

130

The Organization as a System

130

Internal Environment

132

Mission, Vision, and Core Values, 132 • Core Competencies, 133
Managing Technology: Knowledge Management (KM)

134

Organizational Culture, 134 • Organizational Climate, 135 •
Leadership, 135 • Organizational Structure, 136 • Resources, 136
External Environment

138

Directly Interactive Forces, 139
Ethical Management: Cola Wars on Campus

140

Indirectly Interactive Forces, 141
Global Applications: Britain and the Measure of Things

143

Environments and Management

144

Sensing and Adapting to Environments, 144 • Influencing
Environments, 144 • Meeting Responsibilities to Stakeholders, 144
Valuing Diversity: Frito-Lay Cultural Festival

146


x

Contents

Chapter 6: Planning and Strategy

152

Introduction

154

Planning Defined

154

Mission Statement, 154 • Goals, 155 • Plans, 155 • Strategies and
Tactics, 157 • Determining Resource Requirements, 157
Types of Plans

157

Strategic Plans, 157 • Tactical Plans, 158
Valuing Diversity: Planning for Diversity

160

Operational Plans, 160
Ethical Management: Privacy: Company Policy and the Law

162

Unified Hierarchy of Goals, 162 • Contingency Plans, 164
Basic Planning Process

165

Setting Objectives, 165 • Analyzing and Evaluating the Environment,
166 • Identifying the Alternatives, 167 • Evaluating the Alternatives,
167 • Selecting the Best Solution, 168 • Implementing the Plan, 168 •
Controlling and Evaluating the Results, 168
Making Plans Effective

168

Improving the Quality of Assumptions and Forecasts, 169 •
Planning Tools, 169
Managing Technology: Database

170

Global Applications: Forecasting Leads Mercedes to Alabama

171

Barriers to Planning

171

Nature of Strategic Planning and Strategic Management

172

Elements of Strategic Planning, 173 • Responsibility for Strategic
Planning, 174 • Strategy Formulation Versus Strategy Implementation,
174 • Levels of Strategy, 174
Strategic Planning Process

175

Formulating Corporate-Level Strategy

179

Grand Strategies, 179 • Portfolio Strategy, 180
Formulating Business-Level Strategy

181

Adaptive Strategies, 181 • Competitive Strategies, 182
Formulating Functional-Level Strategy

183

Chapter 7: Making Decisions

190

Introduction

192

What You Need to Know About Decisions

192

What Decision Making Is

193

Decision Making, Problem Solving, and Opportunity Management,
193 • Universality of Decision Making, 193 • Approaches to Decision
Making, 194 • Programmed and Nonprogrammed Decisions, 194
Managing Technology: Breakthrough Business Models

195

Ethical Management: Questionable Decision Making at WorldCom

197

Contents

Seven-Step Decision-Making Process

xi

197

Defining the Problem or Opportunity, 197 • Identifying Limiting
Factors, 199 • Developing Potential Alternatives, 200 • Analyzing the
Alternatives, 200 • Selecting the Best Alternative, 201 • Implementing
the Decision, 202 • Establishing a Control and Evaluation System, 202
Global Applications: Making the Right Decisions at Puma

203

Environmental Influences on Decision Making

203

Degree of Certainty, 203 • Imperfect Resources, 205 • Internal
Environment, 205 • External Environment, 208
Influence of Managerial Style on Decision Making

208

Personal Decision-Making Approaches, 208 • Ability to Set Priorities,
209 • Timing of Decisions, 209 • Tunnel Vision, 209 • Commitment
to Previous Decisions, 210 • Creativity, 210

Group Decision Making

210

Brainstorming, 210 • Nominal Group Technique, 211 • Delphi
Technique, 212
Valuing Diversity: Not Old . . . Wise

213

Advantages and Disadvantages of Group Decision Making, 213
Quantitative Decision-Making Techniques

214

Decision Trees, 214 • Payback Analysis, 214 • Simulations, 215
Creating an Environment for Effective Decision Making

PART 3: ORGANIZING

217

223

Chapter 8: Organizing Principles

224

Introduction

226

The Formal Organization

226

Organizing Process

227

Relationship Between Planning and Organizing, 227
Managing Technology: How an Outsourcing Company Handles a Health
Insurance Claim

228

Benefits of Organizing, 229
Five-Step Organizing Process

229

Reviewing Plans and Goals, 229
Global Applications: Rightsizing Vanguard Info Solutions

231

Determining Work Activities, 231 • Classifying and Grouping
Activities, 233
Valuing Diversity: Reorganizing to Maximize Talent

235

Assigning Work and Delegating Authority, 236 • Designing a Hierarchy
of Relationships, 236
Major Organizational Concepts
Authority, 238 • Unity of Command, 241 • Power, 241 •
Delegation, 243 • Span of Control, 244

237


xii

Contents
Ethical Management: Payoffs and Kickbacks—Who Pays?

245

Centralization Versus Decentralization, 247
The Informal Organization

250

Informal Organization Defined, 250 • Informal and Formal
Organizations Compared, 250 • Emergence of the Informal
Organization, 251 • Structure of the Informal Organization, 252 •
Impact of the Informal Organization, 254

Chapter 9: Organizational Design, Culture, and Change

262

Introduction

264

Designing Organizational Structures

264

Organizational Design Defined, 264 • Objectives of Organizational
Design, 264
Ethical Management: Profits and Layoffs

265

Global Applications: Nokia: Reorganized Business

266

Range of Organizational Design Outcomes, 266 • Mechanistic
Organizational Structures, 267 • Organic Organizational
Structures, 267
Contingency Factors Affecting Organizational Design

268

Strategy, 268 • Environment, 268 • Size of the Organization, 269 •
Age of the Organization, 270 • Technology, 272
Structural Options in Organizational Design

273

Functional Structure, 273 • Divisional Structure, 274 • Matrix
Structure, 276 • Team Structure, 278 • Network Structure, 279
Organizational Culture

280

Organizational Culture Defined, 280 • Factors Shaping Culture, 281
Valuing Diversity: Deloitte & Touche Changes the Culture

283

Manifestations of Culture

284

Statements of Principle, 284 • Stories, 284 • Slogans, 284 •
Heroes, 284 • Ceremonies, 284 • Symbols, 285 • Climate, 285 •
Physical Environment, 286
Creation of Culture

286

Role of Managers, 286 • Role of Employees, 287 • Factors
Contributing to the Effectiveness of Culture, 288
Nature of Culture

289

Sources of Change, 290 • Types of Change, 291 • Rates
of Change, 292 • Management and Change, 293
Managing Technology: Collaboration

294

How to Manage Change

295

Need for Change: Diagnosing and Predicting It, 295 • Steps in
Planned Change, 297
Qualities Promoting Change
Mutual Trust, 298 • Organizational Learning, 299 • Adaptability, 299

298


Contents

Implementation of Change

xiii

299

Resistance to Change, 299 • Why Change Efforts Fail, 301 •
Methods of Effecting Change, 301
Organizational Development

303

Purposes of Organizational Development, 304 • Strategies
of Organizational Development, 304 • Evaluating the Effectiveness
of Organizational Development, 305

PART 4: STAFFING

313

Chapter 10: Staffing the Workforce

314

Introduction

316

Responsibility for Staffing

317

Staffing Process

317

Staffing Environments

318

Legal Environment, 318 • Sociocultural Environment, 323
Valuing Diversity: “Avoiding This Workplace” Top-10 List

324

Union Environment, 327
Human Resource Planning

328

Job Analysis, 328 • Human Resource Inventory, 329 • Human Resource
Forecasting, 330 • Inventory and Forecast Comparison, 331
Recruitment, Selection, and Orientation

332

Strategies for Recruiting, 332
Ethical Management: Coping with Workplace Romances

333

Selection Process, 334
Managing Technology: Directfit’s Internet Videos

335

Orientation, 338
Training and Development

339

Purposes of Training, 339 • Challenges of Training, 340 • Techniques
of Training, 341 • Purposes of Development, 342 • Techniques of
Development, 342
Performance Appraisal

342

Purposes of Performance Appraisal, 342 • Components of Appraisal
Systems, 343 • Appraisal Methods, 344 • Legality of Appraisals, 346
Implementation of Employment Decisions

346

Promotions, 346 • Transfers, 347 • Demotions, 347 • Separations, 347
Global Applications: The End of Japan’s Lifetime Employment

348

Compensation

349

Purposes of Compensation, 349 • Factors Influencing
Compensation, 350 • Wages and Salaries, 350 • Benefits, 351 •
Executive Compensation, 352


xiv

Contents

Chapter 11: Communication: Interpersonal
and Organizational

358

Introduction

360

Communication Process

361

Mediums of Communication

362

Verbal Communication, 362 • Nonverbal Communication, 363
Ethical Management: Profits through Imitation

365

Interpersonal Communication

365

Managing Technology: Real-Time Customer Support

366

Communication and Teams, 366 • Barriers to Interpersonal
Communication, 368
Valuing Diversity: Benefits of Racial Diversity

369

Organizational Communication

371

Formal Downward Channels, 372 • Formal Horizontal Channels,
373 • Formal Upward Channels, 373 • Formal Communication
Networks, 374 • Informal Communication Channels, 374 • Barriers
to Organizational Communication, 377
Improvement of Communication

379

Responsibilities of Senders, 379 • Responsibilities of Receivers, 381
Global Applications: Samsung Buys Quality and Design Message

382

Ten Commandments of Good Communication, 383

Chapter 12: Human Motivation

390

Introduction

392

Challenge of Motivation

392

Basics of Motivation, 393
Global Applications: No More Fear at Semco

394

Motivation Model, 394 • Integrated Motivation Model, 396
Content Theories: Motivation Theories Focusing on Needs

398

Maslow’s Hierarchy of Needs, 398
Ethical Management: A Pink Slip for PeopleSoft

400

Herzberg’s Two-Factor Theory, 402 • McClelland and the Need
for Achievement, 404 • Alderfer’s ERG Theory, 407
Process Theories: Motivation Theories Focusing on Behaviors

408

Expectancy Theory, 408 • Reinforcement Theory, 411 • Equity
Theory, 413 • Goal-Setting Theory, 414
Building a Philosophy of Management

415

Theory X and Theory Y, 415 • Argyris’s Maturity Theory, 416 •
Development of Expectations, 417
Managing for Motivation

417

Treating People as Individuals, 417
Managing Technology: Personalization

Providing Support, 419 • Recognizing and Valuing Diversity, 419

418


Contents
Valuing Diversity: GNL Gets A Wake-up Call

xv
420

Empowering Employees, 420 • Providing an Effective Reward
System, 421 • Redesigning Jobs, 422 • Principles of Job Redesign, 422 •
Promoting Intrapreneurship, 424 • Creating Flexibility, 425

PART 5: LEADING

431

Chapter 13: Leadership

432

Introduction

434

Leadership Defined

434

Leadership Traits, 435
Valuing Diversity: “Male” and “Female” Approaches to Leadership

436

Leadership Skills, 436 • Leadership Behaviors, 437 • Management
Versus Leadership, 437
Ethical Management: Peer Reviews at Risk International

441

Power and Leadership

442

Legitimate Power, 442 • Coercive Power, 442 • Reward Power, 442
Global Applications: Wal-Mart’s Subcontractors and Illegal Immigration

443

Expert Power, 443 • Referent Power, 443
Leadership Styles

444

Positive Versus Negative Motivation, 444 • Decision-Making
Styles, 445 • Task Orientation Versus People Orientation, 447
Theories of Situational Leadership

450

Fiedler’s Contingency Model, 450 • House and Mitchell’s Path–Goal
Theory, 451 • Hersey and Blanchard’s Life-Cycle Theory, 454
Challenges Facing Leaders

454

Leadership Throughout an Organization, 455 • Leadership
and Rapid Response, 455 • Leadership and Tough Decisions, 456
How Managers Can Become Better Leaders

456

Managing Technology: Disaster Recovery in Action

457

Chapter 14: Team Management and Conflict

464

Introduction

466

Nature of Teams

466

Teams Defined, 466 • Characteristics of Effective Teams, 467 •
Types of Teams, 467
Philosophical Issues of Team Management

469

How to Use Teams, 469
Managing Technology: Web Log or Blog

471

Global Applications: Reshaping Siemens

472

How Much Independence to Give Teams, 472
Establishment of Team Organization
Process of Team Building, 474 • Team-Building Considerations, 476

474


xvi

Contents
Valuing Diversity: Experience Counts

478

Management of Team Processes

478

Stages of Team Development, 478 • Team Cohesiveness, 480 •
Team Norms, 481 • Team Personality, 482
Measurements of Team Effectiveness

482

Benefits of Teams, 482 • Costs of Teams, 483
Ethical Management: The Paycheck Counts

484

Team and Individual Conflict

484

Views of Conflict, 484 • Positive and Negative Aspects of
Conflict, 485 • Sources of Conflict, 485
Strategies for Managing Conflict

487

Analysis of the Conflict Situation, 487 • Development of
a Strategy, 487 • Conflict Stimulation, 489

PART 6: CONTROLLING

497

Chapter 15: Information Management Systems

498

Introduction

500

Information and the Manager

500

Managing Technology: Knowledge Management at Xerox

504

Management Information Systems

504

Functions of an Effective Information System (IS), 505 • Guidelines
for Developing an Information System (IS), 505
Computerized Information Systems

507

Computer Operations, 510 • Data-Processing Modes, 511 •
Linking Computer Systems, 511 • CIS Management Tools, 512
Ethical Management: Staying Close to Customers Can Get You Too Close

513

Managing Information Systems

515

Overcoming Resistance, 515
Valuing Diversity: Meetings and Diversity

516

Enabling Users, 517 • Outsourcing, 517
Global Applications: IT Outsourcing at BP

518

Evaluating Results, 519

Chapter 16: Control: Purpose, Process, and Techniques

526

Introduction

528

Controlling and the Other Management Functions

529

Control Process

530

Establishing Performance Standards, 530 • Measuring
Performance, 532 • Comparing Measured Performance
to Established Standards, 533
Ethical Management: Enron Loses Customer Trust

Taking Corrective Action, 534

534

Contents

Types of Controls and Control Systems

xvii

535

Feedforward Controls, 535 • Concurrent Controls, 535
Valuing Diversity: Reliable Mature Workers

536

Feedback Controls, 537 • Control Systems, 538
Characteristics of Effective Controls

539

Focus on Critical Points, 539 • Integration, 539 • Acceptability, 539 •
Timeliness, 540 • Economic Feasibility, 540 • Accuracy, 540 •
Comprehensibility, 541
Control Monitoring

541

Monitoring Organizational Impacts, 541
Managing Technology: RFID in Casinos

542

Updating Controls, 542
Subsystem Controls

544

Finance Controls, 544 • Marketing Controls, 544 • Human Resource
Controls, 545
Financial Controls

546

Financial Statements, 546 • Financial Ratio Analysis, 550 •
Financial Responsibility Centers, 551 Financial Audits, 553
Budget Controls

555

Budget Development Process, 555 •Operating Budgets, 557 •
Financial Budgets, 558
Marketing Controls

559

Marketing Research, 559 • Test-Marketing, 559 • Marketing
Ratios, 560 • Sales Quotas, 561 • Stockage, 561
Human Resource Controls

562

Statistical Analysis, 562 • Human Asset Valuation, 563 • Training
and Development (T&D), 563 • Performance Appraisals, 563 •
Attitude Surveys, 564 • Management Audits, 564
Computers and Control

564

Global Applications: Vietnam Controls Bird Flu

565

APPENDICES

575

Appendix A: Operations Management

576

Introduction

578

Nature of Operations Management

578

Operations Strategy and Operations Management Defined, 578 •
Importance of Operations Management, 578
Operations Planning

Product or Service Design Planning, 579 • Facilities Layout, 581 •
Production Processes and Technology, 583 • Facilities Location, 586 •
Capacity Planning, 586

579


xviii

Contents

Management of Operations

586

Aggregate Plan, 587 • Master Schedule, 587 • Structure for
Implementing Production, 588
Controls for Quality and Productivity

588

Design Control, 588 • Materials Control: Purchasing, 588 • Inventory
Control, 590 • Scheduling Control, 594 • Product Control, 596

Appendix B: International Management

602

Introduction

604

Why Businesses Become International

604

The Multinational Corporation

605

Characteristics of Multinationals

606

International Environment

607

Political Environment, 607 • Legal Environment, 609 • Economic
Environment, 609 • Sociocultural Environment, 610 • Technological
Environment, 612
Planning and the International Manager

612

Choosing Strategies, 612 • Assessing the External Variables, 613
Organizing and the International Manager

615

Pre-International Division Phase, 617 • International Division Phase,
618 • Global Structure Phase, 618
Staffing and the International Manager

621

Staffing Problems and Solutions, 621 • Compensation, 622
Leading and the International Manager

623

Employee Attitudes, 624 • Communication Problems, 624 •
Cross-Cultural Management, 625
Controlling and the International Manager

627

Characteristics of Controls, 627 • Control Problems, 628

Appendix C: Succeeding in Your Organization

632

Introduction

634

Managing to Success

634

Nature of Careers, 634 • Career Perspective, 634 • New Career
Environment, 635
Career Planning

636

Stages of Career Development, 637 • Steps in Career Planning, 638
Career Management

644

Analyzing and Understanding the Organization, 644 • Assessment
and Alignment, 646
Strategies for Career Advancement
Committing to Lifelong Learning, 647 • Creating Visibility, 648 •
Developing Mentor Relationships, 650 • Developing Networks, 652 •
Understanding Power and Politics, 652 • Working with the Boss, 653 •
Managing Stress, 654 • Nature of Stress, 654

647


Contents

Organizational Dilemmas

xix

657

Conflicts Between Personal and Organizational Values, 657 • Loyalty
Demands, 658 • Advancement Decisions, 658 • Independence and
Sponsorship, 659
References

663

Glossary

675

Index

689


We dedicate this book to our past and present students,
who have taught us how to be better managers.


PREFACE
This ninth edition of Management: Meeting and Exceeding Customer Expectations is a comprehensive survey of the functions of management as they are currently being applied in the United States and around the world. The content and
features are structured to reinforce two continuing themes that are woven into
the chapters’ narratives: (1) the never-ending effort by managers and organizations to meet or exceed customers’ needs, and (2) the need organizations and
their people have to be guided by effective leadership.
The authors have made every effort to keep this text objective, timely, and
interesting to both the student and the instructor. All case problems, examples,
and features portray actual companies and managers in action. Companies have
been selected to provide balance between large and small organizations representing service, manufacturing, and retailing industries. Successes as well as

failures are included to lend perspective and aid in understanding.

Features
This text is designed to introduce you to terminology, theories, and principles
at the core of business management. The book is divided into six comprehensive
parts, comprising a variety of examples, applications, exercises, and devices.
Each chapter contains the following components:
• A To Do List—study plan at the beginning of each chapter.
• A list of specific Learning Objectives—concepts to be mastered through
chapter content—at the beginning of each chapter. Each Learning Objective is also highlighted in the page margin to identify where the content addresses the objective.
• Key Terms defi ned within the chapter’s narrative are also highlighted in the
page margin and presented in the Glossary at the back of the book. In addition to defi ning the Key Term, the Glossary also includes page numbers
where you can locate the Key Term.
• A chapter introductory case entitled Management in Action, which tells
how managers and their organizations engage in a variety of activities that
relate to and connect with each chapter’s essential concepts. In addition, the
top manager’s career path is highlighted. These cases are regularly referred
to throughout the chapter.
• Figures designed to illustrate and summarize essential concepts.

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xxi


xxii

Preface

• A Global Applications feature demonstrating the successful application of
one or more of a chapter’s concepts to the practice of management in other
countries. At least one critical thinking question is found at the end of this
feature.

GLOBAL APPLICATIONS

Part 3 Organizing

ages

266

Get ty Im

Nokia: Reorganized Business

• An Ethical Management feature reporting on managers facing decisions
that contain a variety of issues and consequences for themselves and others.
At least one critical thinking question is found at the end of this feature.

Get ty Im

ages

Chapter 2 Management Thought: Past and Present

ETHICAL MANAGEMENT

53

How the Pursuit of Quality
Can Alienate Customers

• A Valuing Diversity feature depicting unique ways in which organizations
show appreciation for their diverse employees. At least one critical thinking
question is found at the end of this feature.

ag
Get ty Im

es

Chapter 9 Organizational Design, Culture, and Change

VALUING DIVERSITY

283

Deloitte & Touche Changes
the Culture

• A Managing Technology feature highlighting techniques that can make the
manager more productive.

Get ty Im

ages

294

MANAGING TECHNOLOGY

Part 3 Organizing

Collaboration

• A Chapter Summary providing a narrative explanation for each of the chapter’s learning objectives.

• Review Questions designed to assist in mastery of the chapter’s learning
objectives.
• Discussion Questions for Critical Thinking intended to provide an opportunity to analyze and apply the chapter’s concepts to practical situations.


Preface

• Internet Exercises designed to help in applying one or more of the chapter’s
key concepts.
• BCRC—exercises to give students up-to-date, targeted, and proprietary information by searching the Business and Company Resource Center.
• An Application Case—positioned at the end of each chapter—presenting
managers and organizations and their attempt to cope with the major issues
raised in that chapter.
• An On the Job Video Case to help bring key management concepts and issues to life in the classroom.
• A Biz Flix Video Case to relay key management concepts depicted in
movies.
Throughout your study of this text, try to relate what you read and discuss
to your own experiences. You have already been practicing—and perhaps violating—many of the principles of management. What you are about to learn is an
extension and refinement of what you already know—a blending of it with the
experiences of others.
Although you will be reading each chapter as a separate area of study, try to
relate it to what you have experienced and read previously. By linking the content of each chapter to that which has preceded it, you will begin to appreciate
that management is a tapestry with many threads that run parallel to and across
one another. For example, planning relates to all the management functions; it is
part of every management activity in much the same way as is communicating.
Periodically step back from your study to see the “big picture” of which each
chapter is but a part.
Upon completion of this text and course, you will have developed your own
philosophy of management and be armed with the essentials necessary for improving your career. You will become a better manager of your own concerns as
well as the work of others.

Organization of the Content
Part 1: Management Concepts
This section provides a basic overview of management, the evolution of management thought, management’s commitment to improvement, and the various environments that affect the practice of management.
Chapter 1 explores what management is about, why it is necessary, the
needs managers must address, management functions, management roles, management skills, and management myths and realities.
Chapter 2 takes you on a journey through the past, examining the evolution
of management theory from the classical schools through today. It assesses the
contributions made by each and explains the links among them.
Chapter 3 examines ethical issues and the need to be proactive when managing for social responsibility. After defi ning both concepts, the chapter explores
ethical tests, approaches to social responsibility, and the links between them and
applicable legal requirements. It also deals with the issues of responsibilities to
stakeholders and of government regulation of business activities as well.
Chapter 4 focuses on management’s commitment to continuous improvement. It explains the link between quality, productivity, and profitability. It also

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Preface

examines factors that affect productivity, along with the commitments necessary by top, middle, and first-line management to improve quality and productivity. Chapter 4 also introduces key concepts such as core values, reengineering,
open-book management, empowerment, and knowledge management.

Part 2: Planning and Decision Making
This section begins with a look at the manager’s environments and their effects on organizational management. The importance of the fi rst function of
management—planning—is examined in Chapter 6 from several perspectives:
organizational, contingency, strategic, and operational. The relationship of planning to all other management functions, and ways to make it more effective, are
covered. The art of decision making is the focus of Chapter 7.

Chapter 5 lists and defi nes the internal and external environments that affect and challenge the practice of management. Business as an open system and
the demands of stakeholders are the major focus.
Chapter 6 explains the importance of planning, the framework for plans,
types and uses of plans, and the planning process.
Chapter 7 guides the student through the steps for rational decisions, decision-making climates, quantitative methods, and the various influences on the
manager’s problem-solving efforts.

Part 3: Organizing
Organizing is examined as a process, along with why different organizations
adopt different approaches to structuring their operations. Both the formal and
informal organizations are included in the discussions. Organizing principles
are demonstrated with examples.
Chapter 8 looks at the formal organization, the organizing process, its key
principles and concepts, and the informal organization.
Chapter 9 covers organizational design, the range of organizational-design
outcomes, organizational culture, and handling change.

Part 4: Staffing

STAFFING

CHAPTER 10
Staffing the Workforce

CHAPTER 11
Communication: Interpersonal
and Organizational

CHAPTER 12

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Human Motivation

This section develops the concepts of staffi ng, communication, and motivation.
Chapter 10 surveys staffi ng from human resource planning to employee separations. It addresses sociocultural and
legal influences, along with such activities as job analysis,
job evaluation, training and development, and the practice of
staffi ng in a union environment.
Chapter 11 focuses on communication—organizational
and interpersonal—and demonstrates the communication
process and barriers to it, along with how managers can improve their communication efforts.
Chapter 12 explores motivation and the applications of
the most relevant theories. It gives special consideration to
how managers can use their insights and principles to get the
most from themselves and team members.

Part 5: Leading
This section develops the concepts of leadership, team management, and confl ict. Essential legal concepts are included along with the principles and practices that affect each.