Essentials of management 9th edition pdf

Buisness Management

Read chapters 3 and 14 from the textbook and week 2 lecture before answering the questions below. If you have any question understanding the content, please contact me.
Chapter 14: Information Technology and e-Commerce .
Learning objectives are listed at the beginning of each Chapter.
1. A growing number of managers believe that in order to work on difficult business problems, they must refrain from looking at e-mail for certain blocks of time during the day. In what ways might checking e-mail frequently interfere with problem solving?(Use a work experience or personal example to support your answer).
2. Skill-Building Exercise 14-A: Costs Reduction through Information Technology. Page 535. Do exercise individually and use a work experience to support your answer. A contribution of this exercise is that it translates the wonders of information technology into concrete savings for a company. The cost savings from information technology have helped some companies and hurt others. For example, drastically fewer photocopies are made today because of the widespread dissemination of e-mail messages, and fewer letters are mailed. You might identify savings in your company due to the use of Infomation Technology.
Chapter 3: Ethics and Corporate Social Responsibility.
3. What is your reaction to the following statement made by many business graduates? "It may be nice to study ethics, but in the real world the only thing that counts is money."
4. Management in Action - Wal-Mart Managers Take the High Road and the Low Road. Read the case and answer the three questions at the end. Page 94.
Take Quiz 2.
This assignment must be sent through the turn it in link shown below. Please, check carefully the originality of your submission. Cite external references to support your answers in both within the text and in the references part as mandated by APA style. Multiple references and citations are required for all written work The text book can only be used for a part of the information all the test must come from external academic resources

Due End of Day Sunday July 7, 2019

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Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

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LETTER TO INSTRUCTORS

Essentials of Management, 9e

Dear Colleague,

Whether you are a previous adopter, a new adopter, or a professor consider- ing this text for adoption, I wish to thank you for your interest in Essentials of Management 9e. Essentials was the first relatively brief management text that was not simply an abbreviated version of a longer text. We created the path for a more concise, more understandable, and practical approach to the vast body of knowledge referred to as “management.” We assume that the study of management is not exclusively geared toward C-level executives, and that our readers will not be directing large enterprises or divisions of large enterprises in their first job. Instead, the vast majority of our readers will first be engaged in work that will require some managerial skill and knowl- edge, even though they are not working as executives.

Virtually all texts in management and related fields claim to be practical, although many single sentences within them make six sweeping recommen- dations for CEOs or list ten companies that use a particular technique. We contend that Essentials of Management, unlike much of the competition, is and always has been a text that enables the student to apply much of the information. We support our conclusions with relevant research studies wher- ever possible, but our intent is not to review most of the research on a given topic. A case in point is our presentation of transformational and charismatic leadership. We present some relevant research findings but also offer the stu- dents concrete suggestions for becoming more charismatic, including devel- oping a more effective handshake.

My writing has always emphasized application both in textbooks and trade books, and most of this writing has been about management, organiza- tional behavior, human relations, leadership, and career management. Even the articles I have published in professional journals would be understandable to readers who were not specialists in the subject under investigation. For example, I have published articles about influence tactics and self-discipline.

My full-time work experience as a management consultant was designed to be a prelude to a career as a college professor and author. Throughout my career I have stayed in contact with organizations and employees through consulting, talks and seminars, media contacts, and career counseling.

The time you invested in reading this message is most appreciated.

Sincerely,

Andrew J. DuBrin

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ESSENTIALS OF MANAGEMENT

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ESSENTIALS OF MANAGEMENT

NINTH EDITION

Andrew J. DuBrin Professor Emeritus of Management

College of Business Rochester Institute of Technology

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

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Essentials of Management, Ninth Edition Andrew J. DuBrin

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Preface

Essentials of Management is written for newcomers to the field of manage- ment and for experienced managers seeking updated information and a review of the fundamentals. It is also written for the many professionals and technical people who work closely with managers and who take their turn at performing some management work. An example would be the mem- ber of a cross-functional team who is expected to have the perspective of a general manager.

Based on extensive research about curriculum needs, the design of Essen- tials of Management addresses itself to the needs of introductory manage- ment courses and supervision courses offered in educational and work settings. Previous editions of the text were used in the study of management in colleges and universities, as well as in career schools in such diverse pro- grams as hospitality and tourism management and nursing. The book can also be used as a basic resource for management courses that rely heavily on lecture notes, PowerPoint presentations, and videos rather than an encyclopedia-like text.

Comments made by Jack and Suzy Welch support the intent and rele- vance of this text in both the present and previous editions. (Jack Welch was the long-time chairman and CEO of GE and Suzy Welch is a former Harvard Business Review editor.) Jack and Suzy Welch write,

In the past two years, we’ve visited 35 B-schools around the world and have been repeatedly surprised by how little classroom attention is paid to hir- ing, motivating, team-building, and firing. Instead B-schools seem far more invested in teaching brainiac-concepts—disruptive technologies, complexity modeling, and the like. Those may be useful, particularly if you join a con- sulting firm, but real managers need to know how to get the most out of people.

(Business Week, December 11, 2006, p. 112.)

ASSUMPTIONS UNDERLYING THE BOOK The approach to synthesizing knowledge for this book is based on the following five assumptions:

1. A strong demand exists for practical and valid information about solutions to managerial problems. The information found in this text reflects the author’s orientation toward translating research findings, theory, and experience into a form useful to both the student and the practitioner.

v

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2. Managers and professionals need both interpersonal and analytical skills to meet their day-to-day responsibilities. Although this book concen- trates on managing people, it also provides ample information about such topics as decision making, job design, organization structure, infor- mation technology, cost cutting, and inventory management.

3. The study of management should emphasize a variety of large, medium, and small work settings, as well as profit and not-for-profit organiza- tions. Many students of management, for example, intend to become small business owners. Examples and cases in this book therefore reflect diverse work settings, including retail and service firms.

4. Introductory management textbooks tend to be unrealistically compre- hensive. Many introductory texts today are more than 800 pages long. Such texts overwhelm students who attempt to assimilate this knowledge in a single quarter or semester. The goal with Essentials of Management was to develop a text that realistically—in terms of time and amount of information—introduces the study of management. This text is not merely a condensation of a larger text, but a concise and comprehensive treatment of management since the first edition.

FRAMEWORK OF THE BOOK The first three chapters present an introduction to management. Chapter 1, “The Manager’s Job,” explains the nature of managerial work with a partic- ular emphasis on managerial roles and tasks. Chapter 2, “International Man- agement and Cultural Diversity,” describes how managers and professionals work in a multicultural environment. Chapter 3, “Ethics and Corporate Social Responsibility,” examines the moral aspects of management.

The next three chapters address the subject of planning. Chapter 4, “Essentials of Planning,” presents a general framework for planning—the activity underlying almost any purposeful action taken by a manager. Chapter 5, “Problem Solving and Decision Making,” explores the basics of decision making with an emphasis on creativity and other behavioral aspects. Chapter 6, “Quantitative Techniques for Planning and Decision Making,” describes several adjuncts to planning and decision making such as break- even analysis, PERT, and production-scheduling methods used for both manufacturing and services.

Chapters 7–9 focus on organizing, culture, and staffing. Chapter 7, “Job Design and Work Schedules,” explains how jobs are laid out and work schedules arranged to enhance productivity and customer satisfaction. Chapter 8, “Organization Structure, Culture, and Change,” explains how work is organized from the standpoint of the organization, how culture pro- foundly influences an organization, and how to cope with and capitalize on change. Chapter 9, “Human Resource and Talent Management,” explains the methods by which people are brought into the organization, trained, and evaluated.

vi Preface

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The next three chapters, on leading, deal directly with the manager’s role in influencing group members. Chapter 10, “Leadership,” focuses on different approaches to leadership available to a manager and on the personal character- istics associated with leadership effectiveness. Chapter 11, “Motivation,” describes what managers can do to increase or sustain employee effort toward achieving work goals. Chapter 12, “Communication,” deals with the complex problems of accurately sending and receiving messages. Chapter 13, “Teams, Groups, and Teamwork,” explains the nature of teams and how managers can foster group members’ working together cooperatively. Chapter 14, “Informa- tion Technology and e-Commerce,” describes how information technology, including the Internet and e-commerce, influences the manager’s job,

The next two chapters, on controlling, deal with an important part of keeping performance in line with expectations. Chapter 15, “Essentials of Control,” presents an overview of measuring and controlling performance and describes how managers work with a variety of financial measures to monitor performance. Chapter 16, “Managing Ineffective Performers,” describes current approaches to dealing with substandard performers, with an emphasis on elevating performance.

The final chapter in the text, Chapter 17, “Enhancing Personal Produc- tivity and Managing Stress,” describes how personal effectiveness can be increased by developing better work habits and time management skills and keeping stress under control. A major theme of the chapter is that good work habits help prevent and manage stress.

PEDAGOGICAL FEATURES Essentials of Management is designed to aid both students and instructors in expanding their interest in and knowledge of management. The book con- tains the following features:

• Learning objectives coordinate the contents of each chapter. They pre- view the major topics and are integrated into the text by indicating which major topics relate to the objectives. The end-of-chapter Summary of Key Points, based on the chapter learning objectives, pulls together the central ideas in each chapter.

• An opening case example illustrates a major topic to be covered in the chapter.

• The Management in Action feature presents a portrait of how specific individuals or organizations practice an aspect of management covered in the chapter.

• Concrete, real-world examples with which the reader can readily identify are found throughout the text. Some examples are original, while others relate research information from magazines, newspapers, journals, and Internet sources.

• Exhibits, which include figures, tables, and self-assessment quizzes, aid in the comprehension of information in the text.

Preface vii

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• Key terms and phrases highlight the management vocabulary introduced in each chapter with definitions that appear in the margin.

• Questions at the end of each chapter assist learning by encouraging the reader to review and reflect on the chapter objectives.

• Skill-building exercises, including Internet activities, appear at the end of each chapter.

• Self-assessment quizzes appear throughout the text, designed to help stu- dents think through their standing on important dimensions of behavior that influence managerial and professional work.

• Case problems, also located at the end of each chapter, can be used to synthesize the chapter concepts and simulate the practice of management.

• Video selections are cued to places in the text where they have particular applicability.

NEW TO THE NINTH EDITION A number of significant changes and additions have been incorporated into this edition. A brief listing of these changes here is followed by a more detailed look.

• All 17 chapters contain new information where appropriate; many older research findings and several topics of lesser interest today have been deleted.

• Twenty-three of the 34 end-of-chapter cases are new, and the Chapter 4 case about Dell has been updated.

• Fifteen of the chapter-opening cases are new. • Nearly all of the many Management in Action boxes are new. The previ-

ous Management in Action stories about Wal-Mart and Hypertherm have been updated.

• There is a new end-of-chapter exercise called Management Now: Online Skill-Building Activities. These exercises will encourage students to use the Internet to obtain up-to-the-minute information, ideas, and applica- tions directly related to each chapter’s topic.

• Three of the skill-building exercises are new.

New Topics Added to the Text • Coping with dangerous and defective products as a challenge for the

manager involved in international trade (Chapter 2) • Analysis of sources of unethical decisions in terms of characteristics of

the individual, moral issues facing the person, and the organizational environment (Chapter 3)

• Extracting extraordinary compensation from the organization as a type of ethical temptation (Chapter 3)

viii Preface

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• The preparation of fraudulent financial documents to deceive investors as a type of unethical behavior, with Bernard L. Madoff as an example (Chapter 3)

• The three components of corporate social responsibility: cognitive, linguistic, and conative (behavior) (Chapter 3)

• Expanded coverage of environmental protection as a form of social responsibility (Chapter 3)

• How decision making is influenced by emotional tagging, or the pro- cess by which emotional information attaches itself to our memories (Chapter 5)

• Engaging in physical exercise to enhance creativity (Chapter 5) • Scenario planning for making good use of forecasts (Chapter 6) • The Delphi technique for increasing the accuracy of forecasts (Chapter 6) • Job design to help decrease back problems (Chapter 7) • Social network analysis to understand the informal organization struc-

ture (Chapter 8) • Resistance to change as a form of feedback (Chapter 8) • Emphasis on concept of talent management instead of organizational

staffing (Chapter 9) • Situational judgment tests as a type of psychological test in employment

(Chapter 9) • Exhibit 10-2 about the measurement of three organizational influence

tactics (Chapter 10) • New section on leadership during adversity and crisis (Chapter 10) • Four drives or needs hardwired into our brains (Chapter 11) • The use of social media as a communication channel within the organi-

zation (Chapter 12) • Reducing cross-cultural communication barriers by correctly pro-

nouncing the names of people you interact with from other countries (Chapter 12)

• Ostracism of unwanted group member as a potential disadvantage of a group (Chapter 13)

• Section on social media and customer relationships (Chapter 14) • Section on how cloud computing affects the internal operations of an

organization (Chapter 14) • Ethical problems associated with maintaining high cash flow by delaying

payment of bills (Chapter 15) • Section on potential hazards of cost reductions (Chapter 15) • Relative standing against competition as a measure of a company’s

financial success (Chapter 15) • The problem with controls limiting innovation (Chapter 15) • Workplace harassment in general as a contributor to ineffective perfor-

mance (Chapter 16) • Avoiding surprises when terminating an employee (Chapter 16) • Exhibit on causes of stress among the general population (Chapter 17)

Preface ix

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

New Skill-Building Exercises Every chapter contains two skill-building exercises, with three new exercises added to the ninth edition, as follows:

• Conducting an Environmental Audit (Chapter 3) • Stretching Your Imagination (Chapter 5) • Learning from Failed Leadership (Chapter 10)

New Management Now: Online Skill-Building Exercises Every chapter contains an Internet-based skill-building exercise designed to connect students to Web sites that will boost their knowledge of up-to-the- minute management topics and issues. Four new skill builders are:

• Finding the Best Jobs (Chapter 7) • Analyzing a Motivational Program (Chapter 11) • Sizing up an Executive on YouTube (Chapter 14) • Finding a C-Level Manager Worthy of Being Terminated (Chapter 16)

Self-Quizzes Not only will students enjoy taking the self-quizzes, they will also learn about their strengths and areas for improvement in the process. Your stu- dents will benefit from taking the following quizzes:

• My Managerial Role Analysis (Chapter 1) • Cross-Cultural Skills and Attitudes (Chapter 2) • The Ethical Reasoning Inventory (Chapter 3) • How Involved Are You? (Chapter 7) • Understanding Your Bureaucratic Orientation (Chapter 8) • Behaviors and Attitudes of a Trustworthy Leader (Chapter 10) • What Style of Leader Are You? (Chapter 10) • My Approach to Motivating Others (Chapter 11) • The Positive Organizational Politics Questionnaire (Chapter 12) • Team Skills (Chapter 13) • The Self-Sabotage Questionnaire (Chapter 16) • Procrastination Tendencies (Chapter 17) • The Stress Questionnaire (Chapter 17)

Brand-New Action Inserts Students will find one Management in Action insert in every chapter. Fifteen inserts are completely new or an update of an insert from the eighth edition. A complete list follows:

• Brian O’Connor, the Chief Privacy Officer at Eastman Kodak Company (Chapter 1)

• Canadian Banks Open Doors for Employees with Disabilities (Chapter 2)

x Preface

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• Updating and Expansion of Wal-Mart Managers Take the High Road and the Low Road (Chapter 3)

• Mike’s Carwash Puts People First (Chapter 4) • Procter & Gamble and Google Swap Workers to Spur Innovation

(Chapter 5) • Data-Driven Decision Making at Hewlett-Packard (updated) (Chapter 6) • Be Our Guest Hires Part-Time CFO (Chapter 7) • Nokia Corp. Reorganizes (Chapter 8) • Goodyear Tire Stretches Compensation Dollars (Chapter 9) • Safety Coordinator Sherry Black Copes with a Tornado at a Caterpillar

Plant (Chapter 10) • Workers at Skyline Construction Choose Own Mix of Salary and Bonus

(Chapter 11) • Victor Gulas Draws a Map of Connections (Chapter 12) • Hypertherm Chief Executive Organizes for Teamwork (Chapter 13) • Companies Combat Online Insults (Chapter 14) • Cash Doesn’t Lie (Chapter 15) • A Counseling Letter Sent to an Underperforming Employee (Chapter 16) • Leading Banker Uses To-Do Lists to Keep Organized (Chapter 17)

New End-of-Chapter Cases Twenty-three of the cases in the ninth edition are new and one is updated as follows:

• Big Hopes at Olive Garden, the Red Lobster, and LongHorn (Chapter 1) • The Management Trainee Blues (Chapter 1) • Aquarius Technologies is Caught in a Trade War (Chapter 2) • Flippant Jessica (Chapter 2) • Should We Launch Lightening Bolt? (Chapter 3) • The Blue Ocean Strategy Team (Chapter 4) • What Should Dell Do Next? (updated) (Chapter 4) • What to Do with All these False Emergency Patients? (Chapter 5) • Staple’s Invention Quest (Chapter 5) • Retro is Our Future (Chapter 6) • Just-In-Time Worries at the University of Utah Hospital (Chapter 6) • The Telecommuting Challenge at NewWest.Net (Chapter 7) • Redesigning PepsiCo (Chapter 8) • Performance Rankings at Portland Events Planners (Chapter 9) • Michelle Rhee Makes Waves in D.C. (Chapter 10) • Is Julia Too Empowering? (Chapter 10) • Justin Tries a Little Recognition (Chapter 11) • Networking Megan (Chapter 12) • Team Player Jessica (Chapter 13) • How Far Can MyGofer Go? (Chapter 14) • The Adoring Bloggers (Chapter 14)

Preface xi

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• Mr. Potato Head Visits Starbucks (Chapter 15) • MySpace is Our Place (Chapter 15) • “It Takes Me a Long Time to Get Here” (Chapter 16) • Sean Struggles to Get Started (Chapter 17) • Brittany Faces Reality (Chapter 17)

INSTRUCTIONAL RESOURCES Essentials of Management is accompanied by comprehensive instructional support materials.

• Instructor’s Manual. Available on the Instructor’s Resource CD and online, the instructor’s manual provides resources to increase the teach- ing and learning value of Essentials of Management. The Manual con- tains “Chapter Outline and Lecture Notes,” which is of particular value to instructors whose time budget does not allow for extensive class prep- aration. For each chapter, the Manual provides a statement of purpose and scope, outline and lecture notes, lecture topics, comments on the end-of-chapter questions and activities, responses to case questions, an experiential activity, and video case notes.

• Test Bank. Also available on the IRCD or online, the Test Bank contains at least 25 multiple-choice questions, 25 true/false questions, and 3 essay questions. New to this edition are several critical thinking multiple-choice questions for each chapter.

• Examview. The Test Bank questions are also available on the Instructor’s Resource CD with the test generator program, Examview. This versatile software package allows instructors to create new questions and edit or delete existing questions from the Test Bank.

• PowerPoint Slides. A set of 425 professionally prepared PowerPoint slides accompanies the text. This slide package is designed for easy classroom use and closely follows the Instructor’s Manual to facilitate classroom presentation.

• Management CourseMate. Cengage Learning’s Management Course- Mate brings course concepts to life with interactive learning, study, and exam preparation tools that support the printed textbook. Through this website, available for an additional fee, students will have access to their own set of Powerpoint® slides, flashcards, and games, as well as the Learning Objectives, Opening Cases, and Glossary for quick reviews. A set of auto-gradable, interactive quizzes will allow students to instantly gauge their comprehension of the material.

• Product Support Website. The flashcards, Learning Objectives, and Glos- sary are available for quick reference on our complimentary student product support website.

• Webtutor on BlackBoard® and Webtutor on WebCT™. Available on two different platforms, Essentials of Management Webtutor enhances students’ understanding of the material by featuring the Opening Cases,

xii Preface

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Learning Objectives, key term flashcards, threaded discussion questions, puzzles and games, and quizzes that delve more deeply into key concepts presented in the book so that students can excel at all types of assessment.

A NOTE TO THE STUDENT The information in the general preface is important for students as well as instructors. Here I offer additional comments that will enable you to increase the personal payoffs from studying management. My message can be orga- nized around several key points.

• Management is not simply common sense. The number one trap for stu- dents studying management is to assume that the material is easy to mas- ter because many of the terms and ideas are familiar. For example, just because you have heard the word teamwork many times, it does not automatically follow that you are familiar with specific field-tested ideas for enhancing teamwork.

• Managerial skills are vital. The information in the course for which you are studying this text and in the text itself are vital in today’s world. Peo- ple with formal managerial job titles such as supervisor, team leader, department head, or vice president are obviously expected to possess man- agerial skills. But many other people in jobs without managerial titles also benefit from managerial skills. Among them are people with titles such as administrative assistant, customer-service representative, and inventory-control specialist.

• The combination of managerial, interpersonal, and technical skills leads to outstanding career success. A recurring myth is that it is better to study “technical” or “hard” subjects than management because the pay is bet- ter. In reality, the people in business making the higher salaries and other compensation are those who combine technical skills with managerial and interpersonal skills. Executives and business owners, for example, can earn incomes rivaled only by leading professional athletes and enter- tainment personalities.

• Studying management, however, has its biggest payoff in the long run. Entry-level management positions are in short supply. Management is a basic life process. To run a major corporation, manage a restaurant or a hair salon, organize a company picnic, plan a wedding, or run a good household, management skills are an asset. We all have some knowledge of management, but formally studying management can multiply one’s effectiveness.

Take advantage of the many study aids in this text. You will enhance your learning of management by concentrating on such learning aids as the chapter objectives, summaries, discussion questions, self-quizzes, skill- development exercises, and the glossary. Carefully studying a glossary is an effective way of building a vocabulary in a new field. Studying the glossary

Preface xiii

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will also serve as a reminder of important topics. Activities such as the cases, discussion questions, and skill-building exercises facilitate learning by creat- ing the opportunity to think through the information. Thinking through information, in turn, leads to better comprehension and long-term retention of information.

ACKNOWLEDGMENTS Any project as complex as this text requires a team of dedicated and talented people to see that it gets completed effectively. Many reviewers made valu- able comments during the development of this new edition as well as the pre- vious seven editions of the text. I appreciate the helpful suggestions of the following colleagues:

Jackie Armstrong Hill College

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xiv Preface

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Robert Halliman Austin Peay State University

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Preface xv

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Vladimir Simic Missouri Valley College

Howard R. Stanger Canisius College

Lynn Suksdorf Salt Lake Community College

John J. Sullivan Montreat College

Martin J. Suydam George Mason University

Gary Tilley Surry Community College

Bernard Weinrich St. Louis Community College

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Alex Wittig North Metro Technical College

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Thanks also to the members of the Cengage Learning South-Western Team who worked with me on this edition: Editor-in-Chief Melissa Acuña; Executive Editor Scott Person; Developmental Editor Jennifer King; Senior Editorial Assistant Ruth Belanger; Senior Art Director Tippy McIntosh; Marketing Manager Jon Monahan; and Marketing Coordinator Julia Tucker. Writing without loved ones would be a lonely task. My thanks there- fore go to my family: Drew, Rosie, Clare, Douglas, Gizella, Camila, Sofia, Eliana, Julian, Melanie, Will, and Carson. My thanks are also expressed to Stefanie, the woman in my life.

Andrew J. DuBrin

xvi Preface

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About the Author

Andrew J. DuBrin is Professor Emeritus of Management in the College of Business at the Rochester Institute of Technology, where he has taught courses and conducted research in management, organizational behavior, leadership, and career management. He also gives presentations at other colleges, career schools, and universities. He has served as department chair- man and team leader in previous years. He received his Ph.D. in Industrial Psychology from Michigan State University. DuBrin has business ex- perience in human resource management and consults with organizations and individuals. His specialties include career management leadership and management development. DuBrin is an established author of both text- books and trade books, and he contributes to professional journals, maga- zines, newspapers, and online media. He has written textbooks on management, leadership, organizational behavior, human relations, and impression management. His trade books cover many management issues, including charisma, team play, office politics, overcoming career self- sabotage, and coaching and mentoring.

xvii

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Brief Contents

PART1 Introduction to Management

l1 The Manager’s Job 1 l2 International Management and Cultural Diversity 35 l3 Ethics and Corporate Social Responsibility 74 PART2 Planning

l4 Essentials of Planning 116 l5 Problem Solving and Decision Making 151 l6 Quantitative Techniques for Planning

and Decision Making 191

PART3 Organizing

l7 Job Design and Work Schedules 224 l8 Organization Structure, Culture, and Change 262 l9 Human Resource and Talent Management 305 PART4 Leading

l10 Leadership 345 l11 Motivation 388 l12 Communication 427 l13 Teams, Groups, and Teamwork 469 PART5 Controlling

l14 Information Technology and e-Commerce 506 l15 Essentials of Control 539 l16 Managing Ineffective Performers 583

xix

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PART6 Managing for Personal Effectiveness

l17 Enhancing Personal Productivity and Managing Stress 621

Glossary 659 Index 669

xx Brief Contents

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Contents

PART1 Introduction to Management

l1 The Manager’s Job 1 Who Is a Manager? 2 Types of Managers 5 The Process of Management 7 The Four Managerial Functions 9 The Seventeen Managerial Roles 11 Five Key Managerial Skills 17 Development of Managerial Skills 19 The Evolution of Management Thought 20

l2 International Management and Cultural Diversity 35 International Management 36 Challenges Facing the Global Managerial Worker 45 Methods of Entry into World Markets 52 Success Factors in the Global Marketplace 54 The Scope, Competitive Advantage, and Potential Problems of Managing Diversity 59

Organizational Practices to Encourage Diversity 64

l3 Ethics and Corporate Social Responsibility 74 Business Ethics 75 Corporate Social Responsibility 91 Environmental Protection 101 Creating an Ethical and Socially Responsible Workplace 104

PART2 Planning

l4 Essentials of Planning 116 A General Framework for Planning 118 The Nature of Business Strategy 123 The Development of Business Strategy 126

xxi

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Operating Plans, Policies, Procedures, and Rules 140 Management by Objectives: A System of Planning

and Review 142

l5 Problem Solving and Decision Making 151 Nonprogrammed versus Programmed Decisions 152 Steps in Problem Solving and Decision Making 155 Bounded Rationality and Influences on Decision Making 158 Group Problem Solving and Decision Making 168 Creativity and Innovation in Managerial Work 173

l6 Quantitative Techniques for Planning and Decision Making 191

Data-Based Decision Making 193 Forecasting Methods 194 Gantt Charts and Milestone Charts 201 Program Evaluation and Review Technique 202 Break-Even Analysis 208 Decision Trees 210 Inventory Control Techniques 211 Pareto Diagrams for Problem Identification 216

PART3 Organizing

l7 Job Design and Work Schedules 224 Four Major Dimensions of Job Design Plus Job Specialization

and Job Description 226 Job Enrichment and the Job Characteristics Model 232 Job Involvement, Enlargement, and Rotation 236 Job Crafting and Job Design 239 Ergonomics and Job Design 241 Modified Work Schedules and Job Design 244 Job Design and High-Performance Work Systems 254

l8 Organization Structure, Culture, and Change 262 Bureaucracy as an Organization Structure 263 Departmentalization 268 Modifications of the Bureaucratic Organization 272

xxii Contents

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Delegation, Empowerment, and Decentralization 284 Organizational Culture 287 Managing Change 293

l9 Human Resource and Talent Management 305 Human Resource Management and Business Strategy 306 The Talent Management Model and Strategic Human Resource Planning 307

Recruitment 313 Selection 316 Orientation, Training, and Development 325 Performance Evaluation (or Appraisal) 330 Compensation 333 The Role of Labor Unions in Human Resource Management 337

PART4 Leading

l10 Leadership 345 The Link between Leadership and Management 347 The Leadership use of Power and Authority 348 Characteristics, Traits, and Behaviors of Effective Leaders 355 Leadership Styles 362 Transformational and Charismatic Leadership 370 The Leader as a Mentor and Coach 374 Leadership during Adversity and Crisis 376 Leadership Skills 379

l11 Motivation 388 The Relationship between Motivation, Performance, and Engagement 389

Motivation through Need Satisfaction 391 Motivation through Goal Setting 400 Positive Reinforcement and Recognition Programs 402 Expectancy Theory of Motivation 410 Motivation through Financial Incentives 413

Contents xxiii

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l12 Communication 427 The Communication Process 429 Nonverbal Communication in Organizations 431 Organizational Channels and Directions of Communication 434 Barriers to Communication 443 Overcoming Barriers to Communication 447 How to Conduct an Effective Meeting 454 Organizational Politics and Interpersonal Communication 456

l13 Teams, Groups, and Teamwork 469 Types of Teams and Groups 470 Characteristics of Effective Work Groups 479 Stages of Group Development 483 Managerial Actions for Building Teamwork 485 Being an Effective Team Player 488 Potential Contributions and Problems of Teams

and Groups 491 Resolving Conflict within Teams and Groups 494

PART5 Controlling

l14 Information Technology and e-Commerce 506 Information Technology and the Manager’s Job 508 The Positive and Negative Consequences of Information

Technology 510 The Impact of the Internet on Customers and Other

External Relationships 520 The Effects of the Internet on Internal Operations 527 Success Factors in E-Commerce 531

l15 Essentials of Control 539 Controlling and the Other Management Functions 541 Types and Strategies of Control 541 Steps in the Control Process 544 Nonbudgetary Control Techniques 548 Budgets and Budgetary Control Techniques 550 Managing Cash Flow and Cost Cutting 557

xxiv Contents

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Nontraditional Measures of Financial Performance 564 Information Systems and Control 570 Characteristics of Effective Controls 574

l16 Managing Ineffective Performers 583 Factors Contributing to Ineffective Performance 584 The Control Model for Managing Ineffective Performers 593 Coaching and Constructive Criticism 600 Employee Discipline 603 Dealing with Difficult People, Including Cynics 608 Termination 613

PART6 Managing for Personal Effectiveness

l17 Enhancing Personal Productivity and Managing Stress 621

Improving Your Work Habits and Time Management 622 Understanding and Reducing Procrastination 636 The Nature of Stress and Burnout 639 Stress-Management Techniques 648

Glossary 659 Index 669

Contents xxv

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ESSENTIALS OF MANAGEMENT

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CHAPTER 1

TheManager’s Job

In November a few years ago, Nancy Jackson was ableto hire a new full-time salesperson for the company sheco-owns, Architectural Systems Inc. in New York, but found herself facing an angry 19-person staff. “I couldn’t believe their reaction,” she says. Just a few months earlier, some had seen their workweeks reduced or salaries scaled back; two colleagues had been laid off.

To mitigate the situation, Jackson quickly called a meet- ing to explain that beefing up the firm’s sales force was a necessary first step for making a companywide recovery. Meanwhile, she has since gone about hiring differently, she says, bringing on a new marketing associate as a temporary part-time employee, rather than a full-time staff member, so as not to rile her team. “There’s been a lot of emotional hand-holding here that we’ve never had to do before.”1

The story about the manager and owner of the architec- tural firm illustrates, among other ideas, that a manager makes things happen, such as enabling the growth of the firm. Also illustrated is that managers often must deal with upset employees and resolve conflict. As will be described

OBJECTIVES After studying this chapter and doing the exercises, you should be able to:

l1 Explain the term manager,and identify different types of managers.

l2 Describe the process ofmanagement, including the functions of management.

l3 Describe the variousmanagerial roles. l4 Identify the basic managerialskills and understand how

they can be developed.

l5 Identify the major develop-ments in the evolution of management thought.

1Sarah E. Needleman, “Business Owners Try to Motivate Employees,” The Wall Street Journal, January 14, 2010, p. B5.

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in this chapter, and throughout the book, the manager carries out a large number of demanding activities.

WHO IS A MANAGER? A manager is a person responsible for the work performance of group mem- bers. Approximately 10 percent of the U.S. workforce holds a managerial position of one type or another. A manager holds the formal authority to commit organizational resources, even if the approval of others is required. For example, the manager of a Jackson-Hewitt income tax and financial ser- vice outlet has the authority to order the repainting of the reception area. The income tax and financial services specialists reporting to that manager, however, do not have that authority.

The concepts of manager and managing are intertwined. The term man- agement in this book refers to the process of using organizational resources to achieve organizational objectives through the functions of planning, orga- nizing and staffing, leading, and controlling. These functions represent the broad framework for this book and will be described later. In addition to being a process, the term management is also used as a label for a specific discipline, for the people who manage, and for a career choice.

Levels of Management Another way of understanding the nature of a manager’s job is to examine the three levels of management shown in Exhibit 1-1. The pyramid in this figure illustrates progressively fewer employees at each higher managerial level. The largest number of people is at the bottom organizational level. (Note that the term organizational level is sometimes more precise than the term managerial level, particularly at the bottom organizational level, which has no managers.)

Top-Level Managers Most people who enter the field of management aspire to become top-level managers—managers at the top one or two levels in an organization. C-level manager is a recent term used to describe a top-level manager; these managers usually have the word chief in their title, such as chief operating officer. Top-level managers are empowered to make major decisions affect- ing the present and future of the firm. Only a top-level manager, for exam- ple, would have the authority to purchase another company, initiate a new product line, or hire hundreds of employees. Top-level managers are the peo- ple who give the organization its general direction; they decide where it is going and how it will get there. The terms executive, top-level manager, and c-level manager can be used interchangeably.

Because management is an evolving field, new job titles for c-level man- agers continue to surface. Often these titles reflect a new emphasis on what

LEARNING OBJECTIVEl1 Explain the term manager, and identify different types of managers.

manager A person responsible for the work performance of group members.

management The process of using organizational resources to achieve organizational objectives through planning, organizing and staffing, leading, and controlling.

PLAY VIDEO

Go to www.cengage. com/management/ dubrin and view the video for Chapter 1. As you watch, think about the various types of managers shown in the video. What are some of the skills exhibited by the company founder? What are some of the skills exhibited by the other managers?

top-level managers Managers at the top one or two levels in an organization.

2 CHAPTER 1 The Manager’s Job

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http://www.cengage
must be accomplished for an organization to run successfully. Here are a few of the recent c-level positions often found in large organizations:

• Chief of staff. High-level executives in politics and the military have long relied on the services of a chief of staff; this role has recently become a part of the executive suite in business. The chief of staff is a top level advisor who serves as a confidant, gatekeeper, and all-around strategic consultant. Three financial services firms with a chief of staff in the executive suite are Goldman Sachs, Aflac, and the global insur- ance business ING.2

• Chief commercial officer. A growing number of large business firms are designating a chief commercial officer who oversees growth and commer- cial success. The person in this position has major responsibility for cus- tomer relationships and for managing the company interface with the customer. The chief commercial officer position has been created because the many different sales channels, especially digital sales, has forced com- panies to think differently about their customers and how they interact with them. In some instances the CCO supplements the work of the head of marketing, and at other times replaces him or her. The biotech firm Cellular Dynamics International is one firm that employs a chief commercial officer.3

C-level manager A recent term to describe top-level managers because they usually have chief in their title.

EXHIBIT 1-1

Many job titles can be found at each level of management.

Managerial Levels and Sample Job Titles

Top- Level

Managers

Middle-Level Managers

First-Level Managers

Individual Contributors (Operatives and Specialists)

Chairman of the board, CEO, president, vice president, COO (chief operating officer), CFO (chief financial officer), CIO (chief information officer)

Director, branch manager, department chairperson, chief of surgery, team leader

Supervisor, office manager, crew chief

Tool-and-die maker, cook, word-processing technician, assembler

Note: Some individual contributors, such as financial analysts and administrative assistants, report directly to top-level managers or middle managers.

2“Latest CEO Accessory: A Chief of Staff,” Fortune, January 18, 2010, p. 18. 3Ed Frauenheim, “‘CCO’ Becomes Hot Exec Title Amid Recession,” Workforce Manage- ment, September 14, 2009, p. 4.

Who Is a Manager? 3

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• Chief privacy officer. As illustrated in the accompanying Management in Action, the chief privacy officer works on such problems as safeguarding customer information in the digital world.

Middle-Level Managers Middle-level managers are managers who are neither executives nor first-level supervisors, but who serve as a link between the two groups. Middle-level managers conduct most of the coordination activities within the firm, and they are responsible for implementing programs and policies formulated by top-level management. The jobs of middle-level managers vary substantially in terms of responsibility and income. A branch manager in a large firm might be responsible for more than 100 workers. In contrast, a general super- visor in a small manufacturing firm might have 20 people reporting to him or her. Other important tasks for many middle-level managers include help- ing the company undertake profitable new ventures and finding creative ways to reach goals. A major part of a middle manager’s job is working with teams to accomplish work. Middle-level managers play a major role in operating an organization, and therefore continue to be in demand.

Although advances in information technology have reduced the commu- nication requirement of the middle manager positions, the need for middle managers is still strong. Paul Osterman, a management scholar at the MIT Sloan School of Management, conducted an interview and survey study of a

MANAGEMENT IN ACTION

As Rochester, New York-based Eastman Kodak struggles to transform from a film dinosaur to a digital powerhouse, it falls to Chief Privacy Offi- cer Brian O’Connor to keep identity thieves away from EasyShare, Kodak’s photo-sharing Web site. It’s also his job to ensure that HR (human resources) and line managers don’t put the company at risk by overzealously inves- tigating job applicants. Welcome to the world of chief privacy officer (CPO), a young profession with a complicated mandate: protecting the pri- vacy of consumer and employment data.

At Kodak, where O’Connor has served as CPO since 2005, safeguarding customer information—including the millions of digital photos shutterbugs add to EasyShare each day—is key to survival. But it is also at the heart of a complex tangle of federal, state, and

international rules governing how organizations handle personal information.

Questions 1. After studying the section about managerial

roles later in this chapter, identify which roles O’Connor is carrying out.

2. Explain whether you think a company really needs a “chief privacy officer.”

3. Assuming you had the necessary knowledge and skills, to what extent would the position of chief privacy officer appeal to you?

4. Do you worry about identity theft when you post photos on the Internet?

Source: Rita Zeidner, “New Face in the C-Suite,” HR Magazine, January 2010, p. 39.

middle-level managers Managers who are neither executives nor first-level supervisors, but who serve as a link between the two groups.

4 CHAPTER 1 The Manager’s Job

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group of middle managers. One of the conclusions he reached was as follows: “They are responsible for making many of the judgment calls and trade-offs that shape the firm’s success. They are also the key communication channel from senior management down through the ranks.”4

First-Level Managers Managers who supervise operatives are referred to as first-level managers, first-line managers, or supervisors. Historically, first-level managers were promoted from production or clerical (now called staff support) positions into supervisory positions. Rarely did they have formal education beyond high school. A dramatic shift has taken place in recent years, however. Many of today’s first-level managers are career school graduates and four- year college graduates who are familiar with modern management techni- ques. The current emphasis on productivity and cost control has elevated the status of many supervisors.

To understand the work performed by first-level managers, reflect back on your first job. Like most employees in entry-level positions, you probably reported to a first-level manager. Such a manager might be supervisor of newspaper carriers, dining room manager, service station manager, mainte- nance supervisor, or department manager in a retail store. Supervisors help shape the attitudes of new employees toward the firm. Newcomers who like and respect their first-level manager tend to stay with the firm longer. Con- versely, new workers who dislike and disrespect their first supervisor tend to leave the firm early.

TYPES OF MANAGERS The functions performed by managers can also be understood by describing different types of management jobs. The management jobs discussed here are functional and general managers, administrators, entrepreneurs and small- business owners, and team leaders. (The distinction between line and staff managers will be described in Chapter 8 about organization structure.)

Functional and General Managers Another way of classifying managers is to distinguish between those who manage people who do one type of specialized work and those who manage people who engage in different specialties. Functional managers supervise the work of employees engaged in specialized activities such as accounting, engi- neering, information systems, food preparation, marketing, and sales. A functional manager is a manager of specialists and of their support team, such as office assistants.

4Paul Osterman, The Truth About Middle Managers: Who They Are, How They Work, Why They Matter (Boston: Harvard Business School Press, 2009). Quoted in Dean Foust, “Speaking Up for the Organization Man,” Business Week, March 9, 2009, p. 78.

first-level managers Managers who supervise operatives (also known as first- line managers or supervisors).

Types of Managers 5

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General managers are responsible for the work of several different groups that perform a variety of functions. The job title “plant general manager” offers insight into the meaning of general management. Reporting to the plant general manager are various departments engaged in both specialized and generalized work such as manufacturing, engineering, labor relations, quality control, safety, and information systems. Company presidents are general managers. Branch managers also are general managers if employees from different disciplines report to them. The responsibilities and tasks of a general manager highlight many of the topics contained in the study of man- agement. These tasks will be introduced at various places in this book.

Administrators An administrator is typically a manager who works in a public (government) or nonprofit organization, including educational institutions, rather than in a business firm. Among these managerial positions are hospital administrator and housing administrator. Managers in all types of educational institutions are referred to as administrators. The fact that individual contributors in nonprofit organizations are sometimes referred to as administrators often causes confusion. An employee is not an administrator in the managerial sense unless he or she supervises others.

Entrepreneurs and Small-Business Owners Millions of students and employees dream of turning an exciting idea into a successful business. Many people think, “If Michael Dell started Dell com- puters from his dormitory room and he is the wealthiest man in Texas today, why can’t I do something similar?” Success stories such as Dell’s kindle the entrepreneurial spirit. By a strict definition, an entrepreneur is a person who founds and operates an innovative business. After the entrepreneur develops the business into something bigger than he or she can handle alone or with the help of only a few people, that person becomes a general manager.

Similar to an entrepreneur, the owner and operator of a small business becomes a manager when the firm grows to include several employees. Small-business owners typically invest considerable emotional and physical energy into their firms. Note that entrepreneurs are (or start as) small- business owners, but that the reverse is not necessarily true. You need an innovative idea to fit the strict definition of an entrepreneur. Simply running a franchise that sells sub sandwiches does not make a person an entrepre- neur, according to the definition presented here. Also, an entrepreneur may found a business that becomes so big it is no longer a small business.

A major characteristic of both entrepreneurs and small-business owners is their passion for the work. These types of managers will usually have a single-minded drive to solve a problem. Recent research has identified three roles, or activities, within entrepreneurial work that arouse passion. The first is opportunity recognition, the inventor role. Second is venture creation, the

entrepreneur A person who founds and operates an innovative business.

small-business owner An individual who owns and operates a small business.

6 CHAPTER 1 The Manager’s Job

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founder role. Third is venture growth, the developer role.5 A person might invent a small turbine the size of a garbage can to replace the large turbines (or wind mills) used to generate renewable energy. The person becomes exited about creating a business to manufacture and market these small tur- bines. Passion would then be invested in growing the business. If being an inventor fits the person’s self-image best, he or she is likely to be the most passionate about the first role and then lose some passion in the second and third roles.

Team Leaders A major development in types of managerial positions during the last 25 years is the emergence of the team leader. A manager in such a position coor- dinates the work of a small group of people while acting as a facilitator or catalyst. Team leaders are found at several organizational levels and are sometimes referred to as project managers, program managers, process man- agers, and task force leaders. Note that the term team could also refer to an executive team, yet a top executive almost never carries the title team leader. You will be reading about team leaders throughout this text.

All of the managerial jobs described above vary considerably as to the demands placed on the job holder. All workers carrying the job title chief executive officer may perform similar work, yet the position may be much more demanding and stressful in a particular organization.6 Imagine being the CEO of an American auto parts manufacturer that is facing extinction because of overseas competition. His or her job is more demanding than that of the CEO of a company like Binney & Smith, the subsidiary of Hall- mark Cards, which produces Crayola crayons among other popular pro- ducts. With more than three billion crayons produced each year, and a fan base in the millions, Binney & Smith is not threatened with extinction. The CEO can enjoy his or her golf outings while the auto parts CEO worries about losing customers and laying off employees.

THE PROCESS OF MANAGEMENT A helpful approach to understanding what managers do is to regard their work as a process. A process is a series of actions that achieves something— making a profit or providing a service, for example. To achieve an objective, the manager uses resources and carries out four major managerial functions. These functions are planning, organizing and staffing, leading, and control- ling. Exhibit 1-2 illustrates the process of management.

5Melissa S. Cardon, Joakim Wincent, Jagdip Singh, and Mateja Drnovsek, “The Nature and Experience of Entrepreneurial Passion,” Academy of Management Review, July 2009, pp. 511–532. 6Donald C. Hambrick, Sydney Finkelstein, and Ann C. Mooney, “Executive Job Demands: New Insights for Explaining Strategic Decisions and Leader Behavior,” Academy of Management Review, July 2005, pp. 472–491.

team leader A manager who coordinates the work of a small group of people, while acting as a facilitator and catalyst.

LEARNING OBJECTIVEl2 Describe the process of management including the functions of management.

The Process of Management 7

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Resources Used by Managers Managers use resources to accomplish their purposes, just as a carpenter uses resources to build a terrace. A manager’s resources can be divided into four types: human, financial, physical, and informational.

Human resources are the people needed to get the job done. Managers’ goals influence which employees they choose. A manager might set the goal of delivering automotive supplies and tools to auto and truck manufacturers. Among the human resources he or she chooses are manufacturing techni- cians, sales representatives, information technology specialists, and a net- work of dealers.

Financial resources are the money the manager and the organization use to reach organizational goals. The financial resources of a business organiza- tion are profits and investments from stockholders. A business must occa- sionally borrow cash to meet payroll or to pay for supplies. The financial resources of community agencies come from tax revenues, charitable contri- butions, and government grants.

Physical resources are a firm’s tangible goods and real estate, including raw materials, office space, production facilities, office equipment, and vehi- cles. Vendors supply many of the physical resources needed to achieve orga- nizational goals.

Information resources are the data that the manager and the organization use to get the job done. For example, to supply leads to the firm’s sales representatives, the sales manager of an office-supply company reads local business newspapers and Internet postings to learn about new firms in town. These newspapers and Web sites are information resources. Jeffrey R. Immelt, the chairman and CEO of General Electric Corp., surfs

EXHIBIT 1-2

The manager uses resources and carries out functions to achieve goals.

The Process of Management

Planning Organizing and Staffing Leading Controlling

Human Resources

Financial Resources

Physical Resources

Information Resources

Managerial Functions

Manager Goals

Source: Ricky W. Griffin, Management, 4e, Copyright © 1993 South-Western, p. 6. Reproduced by permission. www.cengage.com/permissions.

8 CHAPTER 1 The Manager’s Job

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the Internet regularly to learn about developments in the industry, thus using the Internet as an information resource.