Management leading and collaborating in a competitive world 9e

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Thomas S. Bateman McIntire School of Commerce

University of Virginia

Scott A. Snell Darden Graduate School of Business

University of Virginia

Robert Konopaske McCoy College of Business

Texas State University

13e

MANAGEMENT Leading & Collaborating in a Competitive World

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MANAGEMENT: LEADING & COLLABORATING IN A COMPETITIVE WORLD, THIRTEENTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2019 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2017, 2015, and 2013. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-1-259-92764-5 MHID 1-259-92764-4

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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data

Names: Bateman, Thomas S., author.|Snell, Scott, 1958- author.|Konopaske, Robert, author. Title: Management: leading & collaborating in a competitive world/Thomas S. Bateman, McIntire School of Commerce, University of Virginia, Scott A. Snell, Darden Graduate School of Business, University of Virginia, Robert Konopaske, McCoy College of Business, Texas State University. Description: Thirteenth edition.|New York, NY: McGraw-Hill Education, [2019] Identifiers: LCCN 2017048278|ISBN 9781259927645 (alk. paper) Subjects: LCSH: Management. Classification: LCC HD31.2 .B36 2019|DDC 658–dc23 LC record available at https://lccn.loc.gov/2017048278

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

mheducation.com/highered

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For my parents, Tom and Jeanine Bateman, and Mary Jo, Lauren, T.J., and James

and

My parents, John and Clara Snell, and Marybeth, Sara, Jack, and Emily

and

My parents, Art and Rose Konopaske, and Vania, Nick, and Isabella

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THOMAS S. BATEMAN Thomas S. Bateman is Bank of America pro- fessor in the McIntire School of Commerce at the University of Virginia, teaching leadership and organizational behavior at undergraduate and graduate levels. For many years prior to joining the University of Virginia, he taught organizational behavior at the Kenan- Flagler Business School of the University of North Carolina to undergraduates, MBA students, PhD students, and practicing managers. He taught for two years in Europe as a visiting professor at the Institute for Management Development (IMD), one of the world’s leaders in the design and delivery of executive education. Professor Bateman earned his doctorate in business administration at Indiana University, and his BA from Miami University.

Professor Bateman is an active management researcher, writer, and consultant. He serves on the editorial boards of the Academy of Management Review, the Academy of Management Journal, and the Asia Pacific Journal of Business and Management. His articles appear in professional jour- nals such as the Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Journal of Organizational Behavior, Human Relations, Journal of Macromarketing, and Proceedings of the National Academy of Sciences. His recent work on leadership and psychology in the domain of climate change appears in Nature Climate Change, Global Environmental Change, and The Conversation.

Tom’s long-time research interests center on proactive behavior (including leadership) by employees at all levels, with a recent turn toward scientists and public leadership. His consulting work has included a variety of organizations includ- ing Singapore Airlines, the Brookings Institution, the U.S. Chamber of Commerce, the Nature Conservancy, LexisNexis, Weber Shandwick, the Association of Climate Change Officers, and Chicago’s Field Museum of Natural History.

SCOTT A. SNELL Scott Snell is professor of business administration at the University of Virginia’s Darden Graduate School of Business. He teaches courses in leadership, organizational capability development, and human capital consulting. His research focuses on human resources and the mecha- nisms by which organiza- tions generate, transfer, and integrate new knowledge for competitive advantage.

He is co-author of four books: Managing People and Knowledge in Professional Service Firms, Management: Leading & Collaborating in a Competitive World, M: Management, and Managing Human Resources. His work has been published in a number of journals such as the Academy of Management Journal, Academy of Management Review, Strategic Management Journal, Journal of Management, Journal of Management Studies, and Human Resource Management, and he was recently listed among the top 100 most-cited authors in scholarly journals of management. He has served on the boards of the Strategic Management Society’s human capi- tal group, the Society for Human Resource Management Foundation, the Academy of Management’s human resource division, the Human Resource Management Journal, the Academy of Management Journal, and the Academy of Management Review. Professor Snell has worked with com- panies such as AstraZeneca, Deutsche Telekom, Shell, and United Technologies to align strategy, capability, and invest- ments in talent. Prior to joining the Darden faculty in 2007, he was professor and director of executive education at Cornell University’s Center for Advanced Human Resource Studies and a professor of management in the Smeal College of Business at Pennsylvania State University. He received a BA in psychology from Miami University, as well as MBA and PhD degrees in business administration from Michigan State University.

About the Authors

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ROBERT KONOPASKE Rob Konopaske is an associate professor of management and prin- ciples of management course coordinator in the McCoy College of Business at Texas State University. At the College, he also serves as the Director of the Institute for Global Business. A passionate educator who cares deeply about providing students with an excep- tional learning experience, Rob has taught numerous under- graduate, graduate, and executive management courses, including Introduction to Management, Organizational Behavior, Human Resource Management, International Human Resources Management, and International Business. He has received numerous teaching honors while at Texas State University, most recently the 2016 Presidential Distinction Award, 2014 Gregg Master Teacher Award, and 2012–2013 Namesake for the PAWS Preview new student socialization program (an honor bestowed annually upon eight out of approximately 2,000 faculty and staff). Rob earned his doctoral degree in business adminis- tration (management) at the University of Houston, a mas- ter in international business studies (MIBS) degree from the University of South Carolina, and a bachelor of arts

degree (Phi Beta Kappa) from Rutgers University. He has taught at the University of Houston, the University of North Carolina at Wilmington, and Florida Atlantic University.

Rob is co-author of several recent editions of six books: Management: Leading & Collaborating in a Competitive World, M: Management, Organizational Behavior and Management, Human Resource Management, Global Management and Organizational Behavior, and Organizations: Behavior, Structure, Processes. The eleventh edition of Organizations won a McGuffey Award (for longevity of textbooks and learning materials whose excellence has been demonstrated over time) from the national Text and Academic Authors’ Association.

Rob’s research has been published in such outlets as the Journal of Applied Psychology, Academy of Management Executive, Management International Review, Business Horizons, Human Resource Management, Journal of Business Research, Journal of Management Education, Nonprofit Management and Leadership, Journal of Managerial Psychology, and Human Resource Management Review. Dr. Konopaske currently serves on the editorial board of the International Journal of Human Resource Management.

Rob has lived and worked internationally, speaks three languages, and has held management positions with a large nonprofit organization and a Fortune 500 multinational firm. He consults, trains, and conducts research projects for a wide range of companies and industries. Current or for- mer clients include Credit Suisse, PricewaterhouseCoopers, Buffalo Wings & Rings, KPMG, New Braunfels Utilities, and Johnson & Johnson.

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Our goal is to keep you focused on delivering important “bottom line” results—to make sure you think continually about delivering the goods that make both you and your organization successful. Good management practices and processes are the keys to delivering the results that you want and your employer wants. This results-oriented focus of Management, 13th edition, is a unique highlight you will take away from this book.

Leading & Collaborating Yes, business is competitive. But it’s not that simple. In fact, to think strictly in terms of competition is overly cynical, and such cynicism can sabotage your performance. Along with a realistic perspective on competitive realities, important action elements in managerial success are collaboration and leadership. To succeed, teams and organizations need people to work with rather than against one another, Put another way, you can’t perform alone—the world is too complex, and business is too challenging.

You need to work with your teammates. Leaders and fol- lowers need to work as collaborators more than as adver- saries. Work groups throughout your organization need to cooperate with one another. Business and government, often viewed as antagonists, can work productively together. And today more than ever, companies that traditionally were competitors engage in joint ventures and find other ways to collaborate on some things even as they compete in others. Leadership is needed to make these collaborations work.

How does an organization create competitive advan- tage through collaboration? It’s all about the people, and it derives from good leadership.

Three stereotypes of leadership are that it comes from the top of the company, that it comes from one’s immedi- ate boss, and that it means being decisive and issuing com- mands. These stereotypes contain some truth, but realities are much more complex and challenging.

First, the person at the top may or may not provide effec- tive leadership—in fact, truly good leadership is far too rare. Second, organizations need leaders at all levels, in every team and work unit. This includes you, beginning early in your career, and this is why leadership is a vital theme in this book. Third, leaders should be capable of decisiveness and of giving commands, but relying too much on this tra- ditional approach isn’t enough. Great leadership is far more inspirational than that, and helps people both to think

Welcome to our 13th edition! Thank you to everyone who has used and learned from previous editions. We are proud to present to you our best-ever edition.

Our Goals Our mission with this text is to inform, instruct, and inspire. We hope to inform by providing descriptions of the impor- tant concepts and practices of modern management. We hope to instruct by describing how you can identify options, make decisions, and take effective action. We hope to inspire not only by writing in an interesting way but also by provid- ing a real sense of the challenges and fascinating opportuni- ties ahead of you. Whether your goal is starting your own company, leading a team to greatness, building a strong orga- nization, delighting your customers, or generally forging a positive and sustainable future, we want to inspire you to take meaningful action.

We hope to inspire you to be both a thinker and a doer. We want you to know the important issues, consider the con- sequences of your actions, and think before you act. But good thinking is not enough; management is a world of action. It is a world for those who commit to high performance.

Competitive Advantage The world of management is competitive, while also rich with important collaborative opportunities. Never before has it been so imperative to your career that you learn the skills of management. Never before have people had so many opportu- nities and challenges with so many potential risks and rewards.

You will compete with other people for jobs, resources, and promotions. Your employer will compete with others for contracts, clients, and customers. To survive the compe- tition, and to thrive, you must perform in ways that give you an edge that makes others want to hire you, buy from you, and do repeat business with you. Now and over time, you will want them to choose you, not the competition.

By this standard, managers and organizations must perform. Six essential performance dimensions are cost, quality, speed, innovation, service, and sustainability. When managed well, these performance dimensions deliver value to your customer and competitive advantage to you and your organization. Lacking performance on one or more of them puts you at a disadvantage. We elaborate on them all, throughout the book.

Preface

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differently and to work differently—including working col- laboratively toward outstanding results.

True leadership—from your boss as well as from you— inspires collaboration, which in turn generates results that are good for you, your employer, your customer, and all the people involved.