John r schermerhorn jr management pdf

S C H E R M E R H O R N B A C H R A C H

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MANAGEMENT T H I R T E E N T H E D I T I O N

Management

JOHN R. SCHERMERHORN, JR. OHIO UNIVERSITY

DANIEL G. BACHRACH UNIVERSITY OF ALABAMA

THIRTEENTH EDITION

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Library of Congress Cataloging in Publication Data:

Schermerhorn, John R.

Management / John R. Schermerhorn.—13th ed.

p. cm.

ISBN 978-1-118-84151-8 (unbound)

1. Management. I. Title.

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

http://www.copyright.com
http://www.wiley.com/go/permissions
While you played

I wrote.

But always,

I was listening

and loving

you.

1984 It’s later now.

Don’t worry.

Time

means love shared,

by you

and me.

1986 Th ink

of all the fun

we have.

Here, there, everywhere,

doing things

together.

1989 Home,

now and forever,

will always be

wherever

I can be

with you.

1992 Time

has its ways,

doesn’t it?

Not enough,

not enough,

I often say.

1996

Hurry home

when you can.

Come laughing, sons.

Tell us

your

wonderful stories.

1999 Songs riding winds.

Mimi,

Uncle George,

Uncle Nelson.

Whispers and choirs.

Silence speaks.

2002 On the mountain,

by Irish lakes,

fi nd beauty and

peace.

Fairies dance

there.

2004 Mom loves

us, cats

and rainy days.

Nana and Poppy

loved us

too.

2007 Bookstores, museums,

stories, paintings.

And dreams.

We travel,

we laugh,

joined in life.

2009

While you work,

I’m starting to play

again.

Still listening,

and loving

you.

2011 When I

was young

I never knew

you would make

dreams

come true.

2013 No matter

the time

or day.

With a thought,

a memory,

I smile.

2015

From John

To my sons, John Christian and Charles Porter

From Dan

For Julie, Sammy, Eliana, Jakey, Jessica, Caleb, and Lilah—I love you!

iii

About the Authors Dr. John R. Schermerhorn, Jr., is the Charles G. O’Bleness Professor of Management Emeri-

tus in the College of Business at Ohio University, where he teaches graduate courses in manage-

ment and organizational behavior. Dr. Schermerhorn earned a PhD in organizational behavior

from Northwestern University, an MBA (with distinction) in management and international

business from New York University, and a BS in business administration from the State Univer-

sity of New York at Buff alo. He previously taught at Tulane University, the University of Vermont,

and Southern Illinois University at Carbondale, where he also served as head of the Department

of Management and associate dean of the College of Business Administration.

International experience adds a unique global dimension to Dr. Schermerhorn’s teaching

and writing. He holds an honorary doctorate from the University of Pécs in Hungary. He was

a visiting professor of management at the Chinese University of Hong Kong, on-site coordi-

nator of the Ohio University MBA and Executive MBA programs in Malaysia, and Kohei

Miura visiting professor at Chubu University in Japan. He has served as adjunct professor at

the National University of Ireland at Galway and advisor to the Lao-American College in

Vientiane, Laos. He presently teaches an MBA course at Università Politecnica Delle Marche

in Ancona, Italy, and PhD seminars in the Knowledge and Innovation Management doctoral

program at Bangkok University, Th ailand. At Ohio University he has twice been Director of

the Center for Southeast Asian Studies.

A member of the Academy of Management, Dr. Schermerhorn was chairperson of the

Management Education and Development Division. Management educators and students

alike know him as author of Exploring Management 4e (Wiley, 2014), Management 12e (Wiley,

2013), and co-author of Organizational Behavior 13e (Wiley, 2014). Dr. Schermerhorn has

also published numerous articles, including ones in the Academy of Management Journal,

Academy of Management Review, Academy of Management Executive, Organizational

Dynamics, Asia-Pacifi c Journal of Management, the Journal of Management Development, and

the Journal of Management Education.

Ohio University named Dr. Schermerhorn a University Professor, the university’s highest

campus-wide honor for excellence in undergraduate teaching. He is a popular guest speaker

at colleges and universities. He is available for student lectures and classroom visits, as well

as for faculty workshops on scholarly manuscript development, textbook writing, high

engagement teaching, and instructional and curriculum innovations.

Dr. Daniel G. Bachrach (Dan) is the Robert C. and Rosa P. Morrow Faculty Excellence Fellow

and Professor of Management in the Culverhouse College of Commerce and Business Admin-

istration at the University of Alabama, where he teaches graduate and undergraduate courses

in management. Dr. Bachrach earned a PhD in organizational behavior and human resource

management—with a minor emphasis in strategic management—from Indiana University’s

Kelley School of Business, an MS in industrial/organizational psychology from the University

of Wisconsin-Oshkosh, and a BA in psychology from Bates College in Lewiston, Maine.

A member of the Academy of Management and the Society for Industrial and Organiza-

tional Psychology, Dr. Bachrach serves on the editorial boards of the Journal of Applied Psy-

chology and Organizational Behavior and Human Decision Processes. He is co-editor of the

Handbook of Behavioral Operations Management: Social and Psychological Dynamics in

Production and Service Settings (Oxford University Press, 2014), co-author of Transformative

Selling: Becoming a Resource Manager and a Knowledge Broker (Axcess Capon, 2014), and

senior co-author of 10 Don’ts on your Digital Devices: Th e Non-Techie’s Survival Guide to Digital

Security and Privacy (Apress, 2014). Dr. Bachrach also has published extensively in a number

of academic journals including Organization Science, Journal of Applied Psychology, Strategic

Management Journal, Organizational Behavior and Human Decision Processes, Personnel Psy-

chology, Journal of Management, Leadership Quarterly, Production and Operations Manage-

ment, Journal of Operations Management, Journal of Supply Chain Management, and the

Journal of Personal Selling and Sales Management.

iv

Ohio University named Dr. Schermerhorn a

University Professor, the university’s highest

campus-wide honor for exellence in

undergraduate teaching.

Dr. Bachrach serves on the editorial boards

of the Journal of Applied Psychology and Organizational Behavior and Human Decision Processes.

Preface

From the beautiful cover of this book to the realities of organizations today, great accom-

plishments are much like inspired works of art. Whether one is talking about arranging

objects or bringing together people, technology, and other resources in organizational sys-

tems, it is a balancing act. But the results are spectacular when goals and talent combine to

create a lasting and positive impact.

Just as artists fi nd inspiration in all the senses that bring our world to life, managers fi nd

inspiration in daily experiences, from the insights of scholars, through relationships with

other people, and among the goals that guide organizations in an ever more demanding

society. And like artists, managers must master many challenges as they strive to create the

future from the opportunities of the present.

A well-managed organization—for profi t or nonprofi t, large or small—can build, mix, and

integrate all the beauties of human talent to achieve great things. Th is capacity for positive

impact through people is the goal bound into the pages of Management 13e. It is an oppor-

tunity to gain knowledge, fi nd inspiration, and learn practices that can help build the orga-

nizations we need to forge a better world.

New to Management 13e Management 13e has been revised and updated with a focus on real-world anchors for timely

content, student engagement in critical thinking about real-world and personal career

issues, and instructor opportunities for enriched classroom activities and assignments.

Timely content—All chapters have been updated. Examples of new and expanded coverage

include triple bottom line and shared value view (Chapter 3), disruptive innovation and human

sustainability (Chapter 4), reshoring and tax inversions (Chapter 5), social entrepreneurship and

crowdfunding (Chapter 6), data mining and analytics (Chapter 7), goal management and goal

downsides (Chapter 8 and Chapter 16), employment issues and controversies (Chapter 13),

followership and leadership (chapter 14), technology personality and mood contagion (Chap-

ter 15), and team virtuousness (Chapter 17).

Student engagement features—Student engagement is an embedded theme in Manage-

ment 13e. Look for these chapter features that bring life to disciplinary content: Analysis—

Make Data your Friend, Choices—Th ink Before You Act, Ethics—Know Right from Wrong,

Insight—Learn About Yourself, and Wisdom—Learn from Role Models. Each feature is

designed and visually presented to attract student attention and engage theme in refl ection

and critical thinking. Th ese features are introduced in the chapter opening page as part of

What to Look for Inside: Management Is Real.

Enriched Classroom Opportunities—Th e active and enriched classroom is also an embed-

ded theme in Management 13e. Look for these end-of-chapter opportunities that make it

easy to bring text content to life in discussions, activities, and individual and team assign-

ments: Evaluate Career Situations, Refl ect on the Self-Assessment, Contribute to the Class

Exercise, Manage a Critical Incident, Collaborate on the Team Activity, and Analyze the Case

Study. Th ese instructional enrichments are introduced in the chapter opening page as part

of What to Look for Inside: Skills Make You Valuable.

NNNeww ttoo MMMaanaagemmmmeennt 133e

v

vi PREFACE

Management 13e Philosophy Today’s students are tomorrow’s leaders and managers. Th ey are our hope for the future

during this time of social transformation. New values and management approaches are

appearing; organizations are changing forms and practices; jobs are being redefi ned and

relocated; the age of information is a major force in our lives; and, the intricacies of global-

ization are presenting major organizational and economic challenges.

Management 13e and its rich selection of timely examples and thought provoking

features for analysis and refl ection is designed for this new world of work. It is crafted to

help students understand that management is real and that is an everyday part of their

lives. By engaging with Management 13e, students explore the essentials of management

while also discovering their true potential for developing useful career skills. Th e con-

tent, pedagogy, and features of this edition were carefully blended to support manage-

ment educators who want their students to:

• grow in career readiness,

• become attractive internship and job candidates,

• gain confi dence in critical thinking,

• identify timely social and organizational issues,

• embrace lifelong learning for career success.

Management 13e Pedagogy Th e pedagogical foundations of Management 13e are based on four constructive balances

that are essential to higher education for business and management.

• Th e balance of research insights with formative education. As educators we must be

willing to make choices when bringing the theories and concepts of our discipline to

the attention of the introductory student. We cannot do everything in one course. Th e

goal should be to make good content choices that set the best possible foundations for

lifelong learning.

• Th e balance of management theory with management practice. As educators we

must understand the compelling needs of students to learn and appreciate the applica-

tions of the material they are reading and thinking about. We must continually bring to

their attention interesting and relevant examples.

• Th e balance of present understandings with future possibilities. As educators we

must continually search for the directions in which the real world of management is

heading. We must select and present materials that can both point students in the

right directions and help them develop the confi dence and self-respect needed to

best pursue them.

• Th e balance of what “can” be done with what is, purely and simply, the “right” thing

to do. As educators we are role models; we set the examples. We must be willing to take

stands on issues such as managerial ethics and social responsibility. We must be careful

not to let the concept of “contingency” betray the need for positive “action” and “account-

ability” in managerial practice.

Our students have pressing needs for direction as well as suggestion. Th ey have needs for

application as well as information. Th ey have needs for integration as well as presentation.

And they have needs for confi dence that comes from solid understanding. Our goal is to

put into your hands and into those of your students a learning resource that can help meet

these needs.

Management 13e is designed to help

students discover their true potential

and accept personal responsibilities for

developing career skills.

We are role models . . . we must be

willing to take stands on issues such

as managerial ethics and social

responsibility.

Our goal as educators should be to

make good content and pedagogical

choices that set the best possible foun-

dations for lifelong learning.

MMaanaggeeemmenttt 3ee oossoppp yyy

MMaanaggeeemmenttt 13ee PPeedaaggoggyy

viiPreface

Management 13e Highlights Management 13e introduces the essentials of management as they apply to organizations

and careers in a complex global society. Th e subject matter is carefully chosen to meet

AACSB accreditation guidelines, while still allowing extensive fl exibility to fi t various course

designs, class sizes, and delivery formats.

Th e timely chapter content off ers fl exibility in meeting a wide variety of course objectives

and instructor preferences. Th e chapters are organized in fi ve logical parts—Management,

Environment, Planning and Controlling, Organizing, and Leading. Th e parts and individual

chapters can be used in any order and combination. All chapters have been updated and

enriched with new features and examples from the latest current events.

Learning Model

Th e Management 13e learning model makes it easy for students to read, study, refl ect, and

use critical thinking. Th eir attention is focused on building management skills and compe-

tencies through active learning, and on discovering that management issues and themes

permeate current events that aff ect everyday living.

Each chapter opens with a compelling photo and quote, followed by a learning dash-

board that provides a Quick Start overview, list of Key Takeaways, and a What to Look for

Inside directory in two parts: Management Is Real—with features on Analysis, Choices,

Ethics, Insight, and Wisdom; and, Skills Make You Valuable—with features on Evaluate,

Refl ect, Contribute, Manage, Collaborate, and Analyze. Major Figures within chapters pro-

vide visual support for student comprehension as concepts, theories, and terms are intro-

duced. Where appropriate, Small Boxed Figures and Content Summaries are embedded in the

text to help clarify major points. Th e Management Learning Review section at the end of each

chapter helps students prepare for quizzes and exams by completing a Takeaway Question

Summary and Chapter Self-Test.

Self-Refl ection, Active Learning, and Critical Th inking

Th e What to Look for Inside guide in the chapter-opening learning dashboard points out the

many features in Management 13e that provide students with important opportunities for

self-refl ection, active learning, and critical thinking. Within each chapter, Management Is

Real features present current events, timely issues, and real people and situations to build

awareness and stimulate personal refl ection. Examples include:

MANAGEMENT IS REAL MAKE DATA YOUR FRIEND

Multiple Generations Meet and Greet in the Workplace

THINK BEFORE YOU ACT

Want Vacation? No Problem, Take as Much as You Want

KNOW RIGHT FROM WRONG

Social Media Searches Linked with Discrimination in Hiring

LEARN ABOUT YOURSELF

Self-Awareness and the Johari Window

LEARN FROM ROLE MODELS

Ursula Burns Moves from Student Intern to Fortune 500 CEO

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Management is Real features present

current events, timely issues, and

real people and situations to build

awareness and stimulate personal

refl ection.

Th e Management 13e learning model

makes it easy for students to study,

refl ect, and use critical thinking as they

read.

MMMaanaaggemmmeentt 33ee gg g ttts

viii PREFACE

Management 13e Teaching and Learning Resources

Instructor’s Resource Manual. Th e Instructor’s Resource Manual off ers helpful teaching ideas. It has advice on course development, sample assignments, and recommended activi-

ties. It also off ers chapter-by-chapter text highlights, learning objectives, lecture outlines,

class exercises, lecture notes, answers to end-of-chapter material, and tips on using cases.

Test Bank. Th is comprehensive Test Bank (available on the instructor portion of the Management 13e website) has more than 175 questions per chapter. Th e true/false,

multiple-choice, and short-essay questions vary in degree of diffi culty. All questions are

tagged with learning objectives, Bloom’s Taxonomy categories, and AACSB Standards. Th e

Computerized Test Bank allows instructors to modify and add questions to the master bank

and to customize their exams.

PowerPoint Presentation Slides. Th is robust set of slides can be accessed on the instructor portion of the Management 13e website. Lecture notes accompany each slide.

Pre- and Post-Lecture Quizzes. Included in WileyPLUS Learning Space, the Pre- and Post-Lecture Quizzes focus on the key terms and concepts. Th ey can be used as stand-alone

quizzes, or in combination to evaluate students’ progress before and after lectures.

Lecture Launcher Videos. Short video clips developed from CBS News source materials provide an excellent starting point for lectures or for general class discussion. Teaching

Notes are available and include video summaries and quiz and discussion questions.

Movies and Music. Th e Art Imitates Life supplement, prepared by Robert L. Holbrook of Ohio University, off ers tips for those interested in integrating popular culture and the

humanities into their courses. It provides innovative teaching ideas and scripts for using

movies and music to enrich day-to-day classroom activities. It is widely praised for increas-

ing student involvement and enthusiasm for learning. Th e Art Imitates Life supplement

off ers tips for those interested in integrating popular culture and the humanities into their

courses.

SKILLS MAKE YOU VALUABLE EVALUATE Career Situations: What Would You Do?

REFLECT On the Self-Assessment: Career Readiness “Big 20”

CONTRIBUTE To the Class Exercise: My Best Manager

MANAGE A Critical Incident: Team Leader Faces Test

COLLABORATE On the Team Activity: The Amazing Great Job Race

ANALYZE Th e Case Study: Trader Joe’s: Keeping a Cool Edge

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At the end of each chapter, Skills Make You Valuable features provide a variety of opportu-

nities to build management skills through individual and team learning activities. Examples

include:

Skills Make You Valuable features

provide a variety of opportunities to

build management skills through

individual and team learning activities.

anndd Leeaaarnninggg Reeesourccees

ixPreface

Practice Quizzes. An online study guide with quizzes of varying levels of diffi culty helps students evaluate their progress through a chapter. It is available on the student portion of

the Management 13e website.

Student Portfolio Builder. Th is special guide to building a student portfolio is complete with professional résumé and competency documentation templates. It is on the student

portion of the Management 13e website.

Companion Website. Th e Management 13e website at www.wiley.com/college/ schermerhorn contains a myriad of tools and links to aid both teaching and learning,

including resources described earlier.

WileyPlus Learning Space

What is WileyPLUS Learning Space? It’s a place where students can learn, collaborate, and

grow. Th rough a personalized experience, students create their own study guide while they

interact with course content and work on learning activities.

WileyPLUS Learning Space combines adaptive learning functionality with a dynamic new

e-textbook for your course—giving you tools to quickly organize learning activities, manage

student collaboration, and customize your course so that you have full control over content

as well as the amount of interactivity between students.

You can:

• Assign activities and add your own materials

• Guide students through what’s important in the e-textbook by easily assigning specifi c

content

• Set up and monitor collaborative learning groups

• Assess student engagement

• Benefi t from a sophisticated set of reporting and diagnostic tools that give greater

insight into class activity

Learn more at www.wileypluslearningspace.com. If you have questions, please contact your

Wiley representative.

Acknowledgments Management 13e was initiated and completed with the support of our dedicated and help-

ful Project Editor, Jennifer Manias; Executive Editor, Lisé Johnson, who again rallied the

expertise of a great Wiley team; and Susan McLaughlin, a talented and dedicated “Jack of

all trades.” We all have benefi tted from the special support of George Hoff man (Publisher),

Yana Mermel (Editorial Operations Manager), Tom Nery (designer), Mary Ann Price (photo

research), Suzie Chapman (production), and Kelly Simmons and Amy Scholz (marketing).

We also thank the numerous colleagues—too many to list here—whose help with this book

at various stages of its life added to our understanding of management and management

education.

As always, John works with the support and encouragement of his wife Ann. She perse-

veres even when “the book” overwhelms many of life’s opportunities. Dan is grateful for the

love, support, and guidance of his wife Julie, and the opportunity to work with John.

Brief Contents 1 Management Today 3

2 Management Learning Past to Present 29

3 Ethics and Social Responsibility 51

Part One Management

Part Th ree Planning and

Controlling

7 Information and Decision Making 147

8 Planning Processes and Techniques 173

9 Control Processes and Systems 195

10 Strategy and Strategic Management 215

Part Five Leading 14 Leading and Leadership Development 317

15 Individual Behavior 339

16 Motivation Th eory and Practice 365

17 Teams and Teamwork 389

18 Communication and Collaboration 415

Part Two Environment 4 Environment, Innovation, and Sustainability 77

5 Global Management and Cultural Diversity 97

6 Entrepreneurship and New Ventures 123

Part Four Organizing 11 Organization Structures and Design 241

12 Organization Culture and Change 265

13 Human Resource Management 291

Management Cases for

Critical Th inking

Chapter Cases 438

Self-Test Answers 467

Glossary 477

Endnotes 491

Name Index 523

Organizational Index 526

Subject Index 529

x

Part One Management

1 Management Today 3

Working Today 4

Talent 4

Technology 5

Globalization 6

Ethics 6

Diversity 8

Careers and Connections 9

Organizations 10

Organizational Purpose 10

Organizations as Systems 10

Organizational Performance 11

Changing Nature of Organizations 12

Managers 12

What Is a Manager? 12

Levels of Managers 13

Types of Managers 14

Managerial Performance 14

Changing Nature of Managerial Work 14

Th e Management Process 16

Functions of Management 16

Managerial Roles and Activities 18

Managerial Agendas and Networks 19

Learning How to Manage 20

Technical Skills 21

Human and Interpersonal Skills 21

Conceptual and Critical-Th inking Skills 22

Management Learning Review 23

Summary 23

Self-Test 1 24

Management Skills & Competencies 25

Evaluate Career Situations: What Would You Do? 25 Refl ect on the Self-Assessment: Career Readiness “Big 20” 25 Contribute to the Class Exercise: My Best Manager 26

Manage a Critical Incident: Team Leader Faces Test 26 Collaborate on the Team Activity: Th e Amazing Great Job Race 27 Analyze the Case Study: Trader Joe’s 27

2 Management Learning Past

to Present 29

Classical Management Approaches 30

Scientifi c Management 30

Administrative Principles 31

Bureaucratic Organization 32

Behavioral Management Approaches 33

Follett’s Organizations as Communities 33

Th e Hawthorne Studies 35

Maslow’s Th eory of Human Needs 36

McGregor’s Th eory X and Th eory Y 37

Argyris’s Th eory of Adult Personality 37

Modern Management Foundations 39

Quantitative Analysis and Tools 39

Organizations as Systems 40

Contingency Th inking 41

Quality Management 42

Evidence-Based Management 43

Management Learning Review 45

Summary 45

Self-Test 2 46

Management Skills & Competencies 47

Evaluate Career Situations: What Would You Do? 47 Refl ect on the Self-Assessment: Managerial Assumptions 47 Contribute to the Class Exercise: Evidence-Based Management Quiz 48 Manage a Critical Incident: Th eory X versus Th eory Y 48 Collaborate on the Team Activity: Management in Popular Culture 49 Analyze the Case Study: Zara International 49

Contents

xi

xii CONTENTS

3 Ethics and Social Responsibility 51

Ethics 52

Laws and Values as Infl uences on Ethical Behavior 52

Alternative Views of Ethics 53

Cultural Issues in Ethical Behavior 55

Ethics in the Workplace 56

Ethical Dilemmas 56

Infl uences on Ethical Decision Making 57

Rationalizations for Unethical Behavior 60

Maintaining High Ethical Standards 61

Moral Management 61

Ethics Training 62

Codes of Ethical Conduct 62

Whistleblower Protection 63

Social Responsibility 64

Social Responsibility, Sustainability, and the Triple Bottom Line 64

Perspectives on Corporate Social Responsibility 65

Evaluating Corporate Social Performance 68

Corporate Governance 69

Management Learning Review 71

Summary 71

Self-Test 3 72

Management Skills & Competencies 73

Evaluate Career Situations: What Would You Do? 73 Refl ect on the Self-Assessment: Terminal Values 73 Contribute to the Class Exercise: Confronting Ethical Dilemmas 74 Manage a Critical Incident: Dealing with a Global Supply Chain 74 Collaborate on the Team Activity: Stakeholder Maps 75 Analyze the Case Study: Patagonia 75

Part Two Environment

4 Environment, Innovation,

and Sustainability 77

Th e External Environment 78

Economic Conditions 79

Legal-Political Conditions 79

Sociocultural Conditions 80

Technological Conditions 80

Natural Environment Conditions 82

Environment and Value Creation 83

Value Creation and Competitive Advantage 83

Uncertainty, Complexity, and Change 85

Environment and Innovation 85

Types of Innovations 86

Th e Innovation Process 86

Disruptive Innovation and Technology 87

Environment and Sustainability 88

Sustainable Development 89

Sustainable Business 89

Human Sustainability 90

Management Learning Review 91

Summary 91

Self-Test 4 92

Management Skills & Competencies 93

Evaluate Career Situations: What Would You Do? 93 Refl ect on the Self-Assessment: Tolerance for Ambiguity 94 Contribute to the Class Exercise: Th e Future Workplace 94 Manage a Critical Incident: It’s Also about Respect 94 Collaborate on the Team Activity: Organizational Commitment to Sustainability Scorecard 95 Analyze the Case Study: