Bygone japanese camera brand that merged with konica

M A N A G E M E N T

5 T H A S I A - P A C I F I C

E D I T I O N

D A N N Y S A M S O N

M A N A G E M E N T

R I C H A R D L . D A F T

Management 5th Edition Danny Samson Richard L. Daft

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First published as Management by Dryden Press in 2000. Authorised adaptation of the fifth edition by the Dryden Press, Orlando, Florida.

Adaptation first published in 2003 Second edition published in 2005 Third edition published in 2008 Fourth edition published in 2012

This fifth edition published in 2015

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National Library of Australia Cataloguing-in-Publication Data Author: Samson, Danny, author. Title: Management / Danny Samson, Richard L. Daft. Edition: 5th edition. ISBN: 9780170259798 (paperback) Notes: Includes bibliographical references and index. Subjects: Industrial management--Textbooks. Management--Textbooks. Other Authors/Contributors: Daft, Richard L, author. Dewey Number: 658

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v

PArT oNE INNOvATIve MANAgeMeNT FOR A CHANgINg WORLD 1

1 The changing world of management 2 2 The evolution of management thinking 48

PArT Two THe eNvIRONMeNT OF MANAgeMeNT 87 3 The environment and corporate culture 88 4 Managing in a global environment 134 5 ethics, social responsibility and sustainable development 178 6 The environment of entrepreneurship and small-business management 224

PArT ThrEE PLANNINg 269 7 Organisational planning and goal setting 270 8 Strategy formulation and implementation 308 9 Managerial decision making 350

PArT four ORgANISINg 387 10 Fundamentals of organising 388 11 Managing change and innovation 432 12 Human resource management 476 13 Managing diversity 516

PArT fivE LeADINg 555 14 Individual behaviour in organisations 556 15 Leading in organisations 602 16 Motivating employees 644 17 Communication in organisations 684 18 Teamwork in organisations 724

PArT Six CONTROLLINg 759 19 Managerial and quality control 760 20 Managing the value chain, information technology and e-business 798 Capstone Chapter: Making effective management happen 836

B r i e f c o n t e n t s

vi

c o n t e n t s Preface XvI Resources guide XX Features matrix XXvI Acknowledgements XXvIII About the authors XXIX

chapter 1 the changing world of management 2 Why innovative management matters ____________________6 Current Challenges for managers _______________________6

Challenges for government 6 Challenges for business 7 Challenges for the individual employee 9

managers Who make a differenCe _________________________9 the definition of management _____________________________10 the four management funCtions __________________________11

Planning 11 Organising 13 Leading 13 Controlling 14

organisational performanCe ______________________________15 management skills _______________________________________________ 17

Conceptual skills 18 Human skills 18 Technical skills 19 When skills fail 20

management types ________________________________________________ 21 Vertical differences 22 Horizontal differences 23

What is it like to be a manager? ____________________________ 24 Making the leap: becoming a new manager 24

manager aCtivities ______________________________________________ 26 Adventures in multitasking 26 Life on speed dial 27 Where does a manager find the time? 28 Manager roles 29

managing in small businesses and not-for-profit organisations_____________________________ 32 state-of-the-art management CompetenCies ________ 34 turbulent times: managing Crises and unexpeCted events _______________________________________ 36

Stay calm 36 Be visible 36 Put people before business 36 Tell the truth 36 Know when to get back to business 37

australia’s managers: improving from a loW base ___________________________________________________________ 38

Manager strengths 38 Manager weaknesses 38

sustainable development: noW a Core issue for managers ______________________________________________________41

Discussion questions 43 Ethical challenge 43

» Can management afford to look the other way? 43 Group challenge 44

» Your best and worst managers 44 Case for critical analysis 44

» SharpStyle Salons 44 On the job video case 45

» Camp Bow Wow: Innovative management for a changing world 45

CourseMate 47

Chapter CaSe StudIeS

India: A hotbed of competition for mobile phones 12 Extraordinary crisis management 37

chapter 2 the evolution of management thinking 48 management and organisation ___________________________ 53 ClassiCal perspeCtive __________________________________________ 55

Scientific management 56 Bureaucratic organisations 57 Administrative principles 59

humanistiC perspeCtive ________________________________________61 Early advocates 61

The human relations movement 61 The human resources perspective 63 The behavioural sciences approach 66 Management science 67

reCent historiCal trends ____________________________________ 69 Systems thinking 69 Contingency view 70 Total quality management 71

P a r t O n e

iNNovATivE MANAGEMENT for

A ChANGiNG world

1

viicontents

innovative management thinking for a Changing World _______________________________________________72

Contemporary management tools 72 Managing the technology-driven workplace 74 The shifting world of e-business 74 Knowledge management 76 Social media programs 76

sustainable development and management thinking ______________________________________________________________ 78

Discussion questions 80 Ethical challenge 80

» the supervisor 80 Group challenge 81

» turning points on the road to management 81 Case for critical analysis 81

» More hassle from hr? 81

On the job video case 82 » Barcelona restaurant Group: the evolution of

management thinking 82

CourseMate 84

Chapter CaSe StudIeS

Switching to green power 51 Brumby’s Bakeries cooking along 68 Atlassian: supporting collaboration and innovation 75 Enjo: a friend of its customers 77

Continuing Case: general motors part one: introduCtion to management _____________________________ 85

chapter 3 the environment and corporate culture 88 the external environment __________________________________ 92

General environment 93 Task environment 101

the organisation–environment relationship_______________________________________________________ 105

Environmental uncertainty 105 Adapting to the environment 106 Influencing the environment 110

the internal environment: Corporate Culture _____________________________________________ 112

Symbols 115 Stories 116 Heroes 116 Slogans 116 Ceremonies 117

types of Culture __________________________________________________118 Adaptability culture 118 Achievement culture 120 Involvement culture 120 Consistency culture 120

shaping Corporate Culture for innovative response _____________________________________122

Managing the high-performance culture 122 Cultural leadership 124 Changing and merging corporate cultures 125

sustainable development and the business environment ___________________________________127

Discussion questions 128 Ethical challenge 129

» Competitive intelligence predicament 129 Group challenge 129

» Should you go global? 129 Case for critical analysis 130 On the job video case 130

» Camp Bow Wow: the environment and corporate culture 130

CourseMate 133

Chapter CaSe StudIeS

Growing a business from scratch: lavender! 102 Green power 114 McDonald’s 119

chapter 4 managing in a global environment 134 a borderless World ___________________________________________ 139

Globalisation 140 Developing a global mindset 142

multinational Corporations _____________________________ 143 globalisation baCklash _____________________________________ 145

Serving the bottom of the pyramid (BOP) 145 getting started internationally_________________________ 148

Exporting 148

Outsourcing 149 Licensing 149 Direct investing 150

the international business environment _______________________________________________________ 151 the eConomiC environment ________________________________152

Economic development 152 Infrastructure 153

P a r t t w O

ThE ENviroNMENT of MANAGEMENT

87

viii contents

Economic interdependence 153 Resource and product markets 155 Exchange rates 155 Inflation, interest rates and economic growth 155

the legal–politiCal environment _______________________ 156 Political risk 156 Political instability 157 Laws and regulations 157

the soCioCultural environment ________________________ 158 Social values 158 Communication differences 163

the Changing international landsCape __________________________________________________________ 164

China, Inc. 164 India, the service giant 165 Brazil’s growing clout 165 International trade alliances 166

sustainable development: a global issue and opportunity ________________________________________________________ 171

Discussion questions 172 Ethical challenge 173

» Quality or closing 173 Group challenge 173

» Considerations for overseas expansion 173 Case for critical analysis 174

» Shui Fabrics 174 On the job video case 175

» holden Outerware: Managing in a global environment 175

CourseMate 177

Chapter CaSe StudIeS

Shifting international services and jobs 139 The axis of India 142 Globalising from an Australian base 144 LG Electronics 170

chapter 5 ethics, social responsibility and sustainable development 178 What is managerial ethiCs? __________________________________181

Ethical management today 183 ethiCal dilemmas: What Would you do? _______________ 185 Criteria for ethiCal deCision making _________________ 186

Utilitarian approach 186 Individualism approach 187 Moral rights approach 187 Justice approach 187 Practical approach 188

the individual manager and ethiCal ChoiCes _____ 189 The organisation 193

What is Corporate soCial responsibility? ___________ 194 organisational stakeholders ____________________________ 195 the green movement __________________________________________ 199

Sustainability and the triple bottom line 200 evaluating Corporate soCial responsibility _______ 201 managing Company ethiCs and soCial responsibility __________________________________________203

Codes of ethics 205 Ethical structures 206 Whistle-blowing 207

the business Case for ethiCs and soCial responsibility _________________________________________207

managerial ethiCs and sustainable development in australia ___________________________________ 210 organisational sustainable development __________ 210

The ‘why’ of sustainable development 212 The ‘what’ of sustainable development 213 The ‘when’ of sustainable development 214

taking managerial aCtion on sustainable development ____________________________________215

Discussion questions 216 Ethical challenge 217

» What is right? 217 Group challenge 218

» ethics and business costs 218 Case for critical analysis 218

» too much intelligence? 218 On the job video case 219

» theo Chocolate: managing ethics and social responsibility 219

CourseMate 222

Chapter CaSe StudIeS

Philanthropy goes up a gear 186 Ecomagination 199 A leadership dilemma at Timberland 201 A crisis to milk 209

chapter 6 the environment of entrepreneurship and small-business management 224 What is entrepreneurship? _________________________________ 227

Entrepreneurship as an option 229 entrepreneurship internationally ____________________ 229

Entrepreneurship and the business environment 231 Impact of entrepreneurial organisations 233 Organisational innovation 235

Who are entrepreneurs? ___________________________________239 Traits of entrepreneurs 240

soCial entrepreneurship: an innovative approaCh to small business _______________________________242 starting an entrepreneurial firm ______________________245

Start with the new-business idea 245 The business plan 246 Choosing a legal structure 247 Arranging financing 249 Tactics for becoming a business owner 251 Starting an online business 254

ixcontents

chapter 7 organisational planning and goal setting 270 goals, plans and performanCe __________________________ 273

Messages and values contained in goals and plans 274 goals in organisations ______________________________________ 277

Organisational mission 277 Planning a digital strategy 279 Goals and plans 279 Aligning goals with strategy maps 282 Aligned hierarchy of goals 283

Criteria for effeCtive goals _______________________________285 Management by objectives 287 Single-use and standing plans 291

benefits and limitations of planning _________________293 planning in a turbulent environment _______________294

Contingency plans 294 Scenario planning 294

Crisis planning___________________________________________________295 Prevention 295 Preparation 295 Containment 297

planning time horizons _____________________________________298 the neW planning approaCh _______________________________299

Traditional approaches to planning 299 Modern approaches to planning 300 Innovative approaches to planning 300

sustainable development and goal setting ________303 Discussion questions 304 Ethical summary 304

» repair or replace? 304 Group challenge 305

» Course goal setting 305 Case for critical analysis 305

» hId 305 On the job video case 306

» Modern Shed: managerial planning and goal setting 306

Chapter CaSe StudIeS

Planning and implementing an amazing country growth strategy 286 Siemens 289

chapter 8 strategy formulation and implementation 308 thinking strategiCally ________________________________________ 311

What is strategic management? 312 Purpose of strategy 312 Levels of strategy 317

the strategiC management proCess ____________________320 Strategy formulation versus execution 323 SWOT analysis 323

formulating Corporate-level strategy _____________326 The portfolio strategy 326 The BCG matrix 327 Diversification strategy 328

formulating business-level strategy _________________330 Porter’s competitive forces and strategies 330

formulating funCtional-level strategy ____________334

stages of groWth _______________________________________________ 257 Planning 258 Organising 258 Decision making 259 Leading 259 Controlling 260

intrapreneurship in a groWing business ____________ 262 sustainability and the small or start-up organisation _____________________________________________________263

Discussion questions 264 Ethical challenge 264

» to grow or not to grow? 264 Group challenge 265

» What counts? 265 Case for critical analysis 265

» emma’s parlour 265

On the job video case 266 » urban escapes: managing small business start-ups 266

Chapter CaSe StudIeS

Cleanevent (division of Spotless Group) 233 Competitive innovation in the mining industry 238 Wesfarmers 239 HealthMastery: entrepreneurship in the NZ health services industry 245 Entrepreneurship in solar energy 250 The high and lows of franchising entrepreneurship 252 Franchises in Australia and New Zealand 253 Entrepreneurship: from ‘sparky’ to CEO 257

Continuing Case: general motors part tWo: the environment of management ______________________268

P a r t t h r e e

PlANNiNG

269

x contents

neW trends in strategy _______________________________________335 Innovation from within 335 Strategic partnerships 336

global strategy __________________________________________________ 337 Multidomestic strategy 339 Transnational strategy 339

strategy exeCution ____________________________________________ 341 Implementing global strategies 343 Testing the quality of strategy 343

developing a sustainability strategy as part of business strategy ___________________________________________344

Discussion questions 345 Ethical challenge 346

» a great deal for whom? 346

Group challenge 346 » developing strategy for a small business 346

Case for critical analysis 346 » Starbucks coffee 346

On the job video case 347 » theo Chocolate: strategy formulation and execution 347

CourseMate 349

Chapter CaSe StudIeS

Austal Ltd 315 MYOB 316 Apple Inc.’s strategy: much more than iPod, iPhone, iPad and Mac 319 Chip competition in overdrive 323 Ferragamo: family business or not? 334

chapter 9 managerial decision making 350 types of deCisions and problems ________________________353

Programmed and non-programmed decisions 354 Certainty, risk, uncertainty and ambiguity 356

deCision-making models ____________________________________362 The classical model: rational decision making 362 The administrative model: how managers actually make decisions 363 The political model 365

deCision-making steps ________________________________________ 367 Recognition of decision requirement 367 Diagnosis and analysis of causes 368 Development of alternatives 368 Selection of desired alternative 370 Implementation of chosen alternative 370 Evaluation and feedback 371

personal deCision frameWork ___________________________ 374 innovative deCision making _______________________________ 376

Start with brainstorming 376 Engage in rigorous debate 377 Avoid groupthink 378 Know when to pull the plug 378

sustainable development deCisions ___________________ 379 Discussion questions 380 Ethical challenge 381

» the unhealthy hospital 381 Group challenge 381 Case for critical analysis 382

» decisions at paradox 382 On the job video case 383

» plant Fantasies: managerial decision making 383 CourseMate 384

Chapter CaSe StudIeS

Len Jury Limited, stamp dealer 355 Pepsi-Cola 359

Continuing Case: general motors part three: planning __________________________________________385

chapter 10 fundamentals of organising 388 organising the vertiCal struCture ____________________392

Work specialisation 393 Chain of command 394 Authority, responsibility and delegation 395 Span of management 397 Centralisation and decentralisation 400 Formalisation 400

departmentalisation __________________________________________ 401 Vertical functional approach 402 Divisional approach 405

Matrix approach 408 Hybrid structure 410 Team-based approach 411 Network approach 413

organising for horizontal Coordination_________ 418 The need for Coordination 418 Task forces, teams and project management 419 Relational coordination 420

faCtors shaping struCture ________________________________423 Structure follows strategy 423

P a r t f O u r

orGANiSiNG

387

xicontents

organising for sustainable development __________425 Discussion questions 427 Ethical challenge 427

» Caught in the middle 427 Group challenge 428

» Family business 428 Case for critical analysis 428

» abraham’s Grocery 428

On the job video case 429 » Modern Shed: designing adaptive organisations 429

CourseMate 431

Chapter CaSe StudIeS

Fonterra’s global management structure 392 Strida Bicycles: a globally networked company 416

chapter 11 managing change and innovation 432 turbulent times and the Changing WorkplaCe _________________________________________________________435 innovation and the Changing WorkplaCe __________435 Changing things: neW produCts and teChnologies _____________________________________________________437

Exploration 438 Cooperation 443 Entrepreneurship and innovation roles 449

Changing people and Culture ____________________________ 451 Training and development 453 Organisation development 454

implementing Change _________________________________________458 Need for change 459 Resistance to change 460 Force-field analysis 461 Implementation tactics 464

implementing sustainable development in the organisation ___________________________________________467

Discussion questions 469 Ethical challenge 469

» Crowdsourcing 469 Group challenge 470

» are you ready to implement personal change? 470 Case for critical analysis 471

» Malard Manufacturing Company 471 On the job video case 471

» holden Outerwear: managing change and innovation 471 CourseMate 474

Chapter CaSe StudIeS

Building a better mouse . . . 437 General Electric 453 3M 462 A mini crisis of culture and performance 466

chapter 12 human resource management 476 the strategiC role of hrm is to drive organisational performanCe ____________________________479

The strategic approach 479 Competitive strategy _________________________________________ 480

Building human capital to drive performance 480 External forces 482

the Changing nature of Careers ________________________483 The changing social contract 483 Innovations in HRM 485

finding the right people ____________________________________486 Human resource planning 487 Recruiting 488 Assessing jobs 488 Selecting 491

managing talent: developing an effeCtive WorkforCe _____________________________________496

Training and development 496 Performance appraisal 500

maintaining an effeCtive WorkforCe ________________ 504

Compensation 504 Benefits 505 Termination 506

sustainability and people ___________________________________509 Discussion questions 510 Ethical challenge 510

» research for sale 510 Group challenge 511

» Management competencies 511 Case for critical analysis 511

» the right way with employees? 511 On the job video case 512

» Barcelona restaurant Group: managing human resources 512

CourseMate 515

Chapter CaSe StudIeS

Container Store 491 VIVO Cafe: all in the family … the business is people 503 Biotechnology companies in turbulent environments

and challenging times 507

chapter 13 managing diversity 516 valuing diversity ________________________________________________ 519

Diversity in the corporate world 522 The changing nature of diversity in Australia 522

diversity on a global sCale ________________________________524 Diversity of perspective 525 Inclusion 526 Dividends of workplace diversity 526

xii contents

chapter 14 individual behaviour in organisations 556 understanding yourself and others _________________560

The value of knowing yourself 560 attitudes ____________________________________________________________562

High-performance work attitudes 562 Conflicts among attitudes 566

perCeption _________________________________________________________ 567 attributions _______________________________________________________569 personality and behaviour ________________________________570

Personality traits 570 Attitudes and behaviours influenced by personality 573 Problem-solving styles and the Myers-Briggs Type Indicator 576

emotions ____________________________________________________________ 579 Positive and negative emotions 579

emotional intelligenCe ______________________________________580 managing yourself ____________________________________________582

Basic principles for self-management 583 A step-by-step guide for managing your time 583

stress and stress management ___________________________586 Challenge stress and threat stress 587 Type A and Type B behaviour 587 Causes of work stress 588 Innovative responses to stress management 589

sustainability and organisational behaviour ____594 Discussion questions 595 Ethical challenge 596

» Should I fudge the numbers? 596 Group challenge 596

» personality role play 596 Case for critical analysis 597

» Volkswagen’s Ferdinand piëch 597 On the job video case 598

» Mitchell Gold 1 Bob Williams: understanding individual behaviour 598

CourseMate 601

Chapter CaSe StudY

The Carlson companies 575

chapter 15 leading in organisations 602 the nature of leadership ___________________________________605 Contemporary leadership _________________________________605

Level 5 leadership 606 Servant leadership 607

Authentic leadership 608 Gender differences 609

from management to leadership_________________________ 611 Leadership traits 612

P a r t f i v e

lEAdiNG

555

faCtors shaping personal bias ___________________________ 527 Workplace prejudice, discrimination and stereotypes 527 Ethnocentrism 529

faCtors affeCting Women’s Careers ____________________531 The glass ceiling 531 The opt-out trend 532 The female advantage 533

the Changing WorkplaCe ___________________________________534 Diversity challenges 534

impliCations of a globally diverse WorkforCe __536 aChieving Cultural CompetenCe ________________________538 Current responses to diversity _________________________ 540

Enhancing structures and policies 540 Expanding recruitment efforts 540 Establishing mentor relationships 540 Increasing awareness of sexual harassment 541 Using multicultural teams 542 Positive assistance for women at work in Australia 542

driving sustainability through effeCtively managing diversity ____________________________________________546

Discussion questions 547

Ethical challenge 548 » Sunset prayers 548

Group challenge 548 » personal diversity 548

Case for critical analysis 549 » Waterway Industries 549

On the job video case 550 » Mitchell Gold 1 Bob Williams:

managing diversity 550

CourseMate 552

Chapter CaSe StudIeS

Lenovo Corp. 537 Australian Federal Police on the case 545 Diversity still a big issue, problem and opportunity 546

Continuing Case: general motors part four: organising ________________________________________553

xiiicontents

Behavioural approaches 613 Task versus people 613 The Leadership Grid 614

ContingenCy approaChes __________________________________ 616 The situational model of leadership 616 Fiedler’s contingency theory 618

situational substitutes for leadership ________________621 CharismatiC and transformational leadership__________________________________________________________623

Charismatic leadership 624 Transformational versus transactional leadership 625

folloWership _____________________________________________________ 627 poWer and influenCe _________________________________________629

Position power 630 Personal power 630 Other sources of power 631 Interpersonal influence tactics 632

Contemporary leaders ______________________________________634 leadership of sustainable development _____________638

Discussion questions 639 Ethical challenge 640

» does wage reform start at the top? 640 Group challenge 640

» Which leadership styles are more effective? 640 Case for critical analysis 640

» dGL International 640 On the job video case 641

» Camp Bow Wow: Leadership 641

Chapter CaSe StudIeS

News Corporation 615 In the hands of a matador 625 Asea Brown Boveri 626

chapter 16 motivating employees 644 the ConCept of motivation _________________________________647

Individual needs and motivation 647 Managers as motivators 650

Content perspeCtives on motivation __________________650 The hierarchy of needs 650 ERG theory 653 A two-factor approach to motivation 654 Acquired needs theory 656

proCess perspeCtives on motivation __________________658 Goal setting 658 Equity theory 660 Expectancy theory 661

reinforCement perspeCtive on motivation _________664 Direct reinforcement 664 Social learning theory 666

Job design for motivation __________________________________ 667 Job enrichment 668 Job characteristics model 668

innovative ideas for motivating ________________________670 Building a thriving workforce 671

Empowering people to meet higher needs 671 Giving meaning to work through engagement 672

keeping staff motivated in australia and neW zealand_______________________________________________________ 675 motivation for sustainability _____________________________ 677

Discussion questions 678 Ethical challenge 679

» Compensation showdown 679 Group challenge 679

» Should, need, like, love 679 Case for critical analysis 680

» Lauren’s balancing act 680 On the job video case 681

» urban escapes: motivating employees 681 CourseMate 683

Chapter CaSe StudIeS

Managing motivation at Degussa Peroxide Ltd 647 ACER Group Computers: coping with fierce competition

in the world’s PC market 652 Outback Steakhouse 657 Hilcorp Energy 672

chapter 17 communication in organisations 684 CommuniCation is the manager’s Job __________________687

What is communication? 688 A model of communication 688

CommuniCating among people ___________________________690 Open communication climate 690 Communication channels 692 Communicating to persuade and influence others 695 Communicating with candour 695 Asking questions 698 Listening 699 Non-verbal communication 700

organisational CommuniCation ________________________702 Formal communication channels 702 Personal communication channels 706

WorkplaCe CommuniCation _______________________________ 710 Social media 710 Listening to customers 711 Communicating to customers 711 Connecting employees 711 Crisis communication 712

CommuniCations and sustainability ____________________717 Discussion questions 718

xiv contents

chapter 19 managerial and quality control 760 the meaning of Control ____________________________________ 763 feedbaCk Control model ___________________________________764

Steps of feedback control 764 The balanced scorecard 767

budgetary Control ____________________________________________ 769 Expense budget 770 Revenue budget 770 Cash budget 770 Capital budget 771 Zero-based budget 771

finanCial Control _____________________________________________ 772 Financial statements 772 Financial analysis: interpreting the numbers 774

the Changing philosophy of Control ________________ 777 Hierarchical versus decentralised approaches 777

Open-book management 779 total quality management (tqm) _________________________ 782

TQM techniques 783 TQM success factors 786

trends in quality and finanCial Control ___________788 International quality standards 788 Corporate governance 789

qualities of effeCtive Control systems ______________790 sustainable development and management Control ________________________________________ 792

Discussion questions 793 Ethical challenge 794

» the wages of sin? 794 Group challenge 794

» Create a group control system 794

P a r t s i x

CoNTrolliNG

759

Ethical challenge 719 » the voice of authority 719

Group challenge 719 » Listen like a professional 719

Case for critical analysis 720 » Wa manufacturing 720

On the job video case 720 » plant Fantasies: managing communication 720

CourseMate 722

Chapter CaSe StudIeS

General Electric 696 Susan Williams 705 Rhonda White achieved her vision 707

chapter 18 teamwork in organisations 724 the value of teams ______________________________________________ 727

What is a team? 728 Contributions of teams 728 Types of teams 729

the dilemma of teams _________________________________________ 732 Model of team effectiveness 734 Virtual teams 736

team CharaCteristiCs _________________________________________ 739 Size 739 Diversity 739 Member roles 739

team proCesses___________________________________________________ 742 Stages of team development 742 Team cohesiveness 744 Team norms 745

managing team ConfliCt ____________________________________ 747 Types of conflict 747 Balancing conflict and cooperation 747 Causes of conflict 748 Styles to handle conflict 748

negotiation _______________________________________________________ 749 Types of negotiation 750 Rules for reaching a win-win solution 751

implementing sustainable development through teamWork ____________________________________________ 752

Discussion questions 753 Ethical challenge 753

» Consumer safety or team commitment? 753 Group challenge 754

» Feedback exercise 754 Case for critical analysis 754

» are we a team? 754 On the job video case 755

» holden Outerware: leading teams 755 CourseMate 757

Chapter CaSe StudIeS

The team’s the thing 727 The Aconex team in Melbourne 738 Transport Corporation of India (TCI) 740

Continuing Case: general motors part five: leading _______________________________________________ 758

xvcontents

glossary 860 Name index 872 Subject index 879

Case for critical analysis 795 » Lincoln electric 795

On the job video case 796 » Barcelona restaurant Group: managing

quality and performance 796

CourseMate 797

Chapter CaSe StudIeS

Semco’s open-book policy 781 A lesson in quality from China 782 The honeybee style 784

chapter 20 managing the value chain, information technology and e-business 798 the organisation as a value Chain _____________________802

Service and manufacturing operations 804 Supply chain management 805

faCilities layout _________________________________________________806 Process layout 808 Product layout 809 Cellular layout 809 Fixed-position layout 810

teChnology automation ____________________________________ 810 Radio-frequency identification (RFID) 810 Digital manufacturing systems 811 Lean thinking 812

inventory management ______________________________________ 813 The importance of inventory 814 Just-in-time inventory 815

operations deliver outComes ____________________________ 816 information teChnology has transformed management _______________________________________________________817

Boundaries dissolve; collaboration reigns 817 Knowledge management and Web 2.0 818 Enterprise resource planning systems 821

the internet and e-business ________________________________822 e-business strategy: market expansion 824 e-business strategy: increasing efficiency 824

operations management, information and sustainable development ____________________________826

Discussion questions 828 Ethical challenge 829

» Manipulative or not? 829 Group challenge 829

» developing an online strategy 829 Case for critical analysis 830

» SunBright Outdoor Furniture, Inc. 830 CourseMate 833

Chapter CaSe StudIeS

Managing the professional services firm 803 IKEA 813 Profiting in a depressed smoke stack industry 815 NTT DoCoMo: the leading edge of the mobile phone business 818 Harvest FreshCuts 827

Continuing Case: general motors part six: Controlling ______________________________________________________834

capstone chapter making effective management happen 836 fundamental praCtiCes Common to Winning organisations __________________________________839

Leadership practices 840 People management practices 844 Customer focus practices 848 Quality management practices 849 Innovation practices 851 Knowledge management practices 852

deeper prinCiples Common to the World’s best organisations _____________________________________________853

putting it all together: the organisation as a system __________________________________________________________ 857

Discussion questions 858 Group challenge 859

» understanding how an organisation works 859 CourseMate 859

Chapter CaSe StudIeS

Google: a great place to search – and work 847 Values can come from Mars 856

xvi

TAkINg THe LeAD The world seems to be changing ever faster, with social, technological, economic and

political forces reverberating around the globe every day. Volatility seems to be increasing: just consider the 2011 earthquakes in New Zealand and Japan, and the 2008–10 global financial

crisis, the recent financial difficulties in Greece and Spain and the political and military problems in Syria and Ukraine. Managers need to know what is going on in their industries and economies on

a current and ongoing basis. In Australia, New Zealand and other Asia–Pacific countries, the challenges and opportunities facing managers have never been greater. New technology and globalisation mean that

managers in these countries must not just be competitive with the organisation ‘down the road’ or across the country, but must also recognise that the only realistic standard for comparison of performance in the new

millennium is ‘world’s best’. The announced demise of Australia’s automotive assembly industry (effective 2017) after more than 50 years of operations demonstrates the intensity of global competitive forces. In every industry, competition

is becoming fiercer each month, and there are always winners and losers. Winners grow and prosper, but uncompetitive companies quickly wither away and their shareholders lose their investments, while managers and other staff lose their jobs. Not-for-profit organisations such as government service suppliers, charities and clubs must also excel in their focus and use of resources, since their employees, consumers and suppliers have high expectations of effectiveness and output.

Technological change is accelerating and driving exciting new competitive dynamics in most industries. This includes new process technologies such as manufacturing automation, and in particular the web-based and social networking technologies such as Facebook, Instagram, Google and Twitter that are making information available to people as never before. The Internet has a profound effect on all forms of organisation, business and consumer behaviour. Consider how Amazon and EBay have impacted on consumer shopping habits. New business models and innovative ways to combine products and services are made possible by the Internet, as well as much richer, faster, cheaper and more detailed information exchange between businesses. The cost of close coordination between organisations is lower as a result of these new technologies, leading to new networks of collaboration within supply networks.

Another major trend that will impact on managers and businesses all over the world is the coming of age of the Chinese economy and, behind that, India, Brazil and others. These low-wage countries, which have over half of the world’s people living in them and hence huge internal developing markets, provide both opportunity and threat for all Asia–Pacific-based companies and countries. In addition, political instability, terrorism, disease such as bird flu, climate change and other unanticipated events, coupled with the rise of regional trade blocs and free trade agreements, will impact substantially on the opportunities for companies to export and trade globally. Managers must be capable of planning and leading their organisations under both stable and unstable conditions.

Risk management and crisis management are new processes with which managers must formally engage and become competent. Further, brought on by the collapse of major companies such as Lehman Brothers and many others as part of the global financial crisis, managers must now demonstrate the quality of governance in their systems and decisions, through compliance with strict new procedures, as legislated by governments and required by shareholders.

And through all this, the fundamental management requirements – being highly competent in managing people, processes, customers, products and services; devising and planning strategies; organising resources; and leading and controlling work – have not gone away and never will. Rather, they must now be conducted at higher standards than ever in order to keep customers, employees and shareholders satisfied. A further requirement comes with the challenge of ‘sustainable development’, of being socially and environmentally responsible, while still maximising profits and behaving with high standards of ethics and integrity.

This book gives the reader a realistic perspective of what management is and what managers really do. Management as a profession is dynamic, challenging and exciting for those who want to excel at it. Each day brings new and often unanticipated challenges despite the plans made by even the best managers and leaders. The relatively new challenges of sustainable development are integrated into every chapter of this book.

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Management involves creating and conducting the affairs of organisations so as to achieve valuable outcomes for many different stakeholders, particularly staff, owners, and clients or customers. In order to do this well, leaders in organisations must achieve many things at high levels – including motivating staff and themselves, ensuring that their products and services match customer requirements, efficiently managing finances and resources, and, above all else, assembling all this into an overall strategy that makes sense for all participants. Good managers need to understand and apply the fundamentals of fields as diverse as economics and psychology, as well as using various analytical techniques.

We chose a sporting theme and analogy for this book because the challenges facing managers have so much in common with those of competitive sports. In both sports and management, no matter how well you’re doing, improvement is always possible. There is no such thing as the perfect tennis game, golf swing or score, and no such thing as the perfect manager or organisation. There is always room for improvement. In both sport and management, planning and strategising usually helps. What are our competitors likely to be doing? What are the conditions in the field, economy or marketplace that we participate in? In both sport and management, the best-laid plans often don’t come to fruition because things keep changing, so adjustments, sometimes radical, must be made to the planned business or sporting tactics. Decisions must be made under pressure – whether it’s during a tennis match or a business day – because unforeseen events occur, and unanticipated consequences develop in real time. At its extreme, this is referred to as ‘crisis management’.

Finally, in both sport and management, there are always new competitors, new technologies, new strategies developing and new products that we must adapt to and find ways to turn into opportunities. Just like sport, management is dynamic and challenging. Just as new technologies, such as graphite tennis racquets and titanium golf clubs, changed those games and allowed for new levels of performance, so, too, has the Internet significantly created new opportunities and business strategies. Learning and innovation are the keys. For those who excel, the personal rewards that come from the satisfaction of achievement – as well as the creation of value for many stakeholders in the community – can be immense.