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While still organizing the chapters around the clas- sic management functions, we modernize those functions with a far more dynamic orientation. Looking constantly at change and the future, we describe the management func- tions as Delivering Strategic Value (for Planning), Building a Dynamic Organization (for Organizing), Mobilizing People (for Leading), and last but hardly least, Learning and Changing (for Controlling).
Special Features Every chapter offers a fascinating and useful portfolio of spe- cial boxed features that bring the subject matter to life in real time:
1. Management in Action, a hallmark feature, presents unfolding contemporary three-part cases about today’s business leaders and companies. The first part, “Manager’s Brief,” encourages students at the start of each chapter to begin thinking about one or more of that chapter’s major themes in the context of the current business scene. For example, Chapter 1 introduces Facebook’s Mark Zuckerberg and some of the challenges his company faces. The second Management in Action element, “Progress Report,” appears about halfway through each chapter and incorporates addi- tional chapter themes into the narrative. At each stage of this unfolding feature, we offer suggestions or questions for classroom discussion, in-class group work, or simply reflec- tion. Closing out the Management in Action three-part series is “Onward,” at the end of each chapter, which distills key aspects of the chapter and challenges students with questions for further consideration. Chapter 1’s closing “Onward” seg- ment reflects on what it might be like to work at Facebook.
2. Social Enterprise boxes offer examples illustrating chapter themes from outside the private sector. Many students are deeply interested in social entrepreneurs and enterprises, inherently and for future employment possi- bilities. Examples include: “Ashoka’s Bill Drayton, Pioneer of Social Entrepreneurship” (Chapter 1), “Are Business School Graduates Willing to Work for Social Enterprises?”
(Chapter 10), and “Piramal Sarvajal Provides Clean Water via ‘Water ATMs,’” (Chapter 17).
3. Multiple Generations at Work boxes discuss chapter themes from multigenerational perspectives, based on data rather than stereotypes, with a goal of strengthening what too often are difficult workplace relationships. Examples include: “Are ‘Portfolio Careers’ the New Normal?” (Chapter 2), “Crowdsourcing: An Inexpensive Source of Creative Ideas” (Chapter 3), and “Tech-Savvy Gen Z Is Entering the Workforce” (Chapter 17).
4. The Digital World feature offers unique examples of how companies and other users employ digital/social media in ways that capitalize on various ideas in each chapter. Students of course will relate to the social media but also learn of interesting examples and practice that most did not know before. Instructors will learn a lot as well!
That’s the big picture. We believe the management sto- ries in the boxed features light up the discussion and con- nect the major themes of the new edition with the many real worlds students will enter soon.
Up next is just a sampling of specific changes, updates, and new highlights in the 13th edition—enough to convey the wide variety of people, organizations, issues, and man- agement challenges represented throughout the text.
Chapter 1 • New Management in Action about Mark Zuckerberg of
Facebook.
• New Social Enterprise about Bill Drayton of Ashoka.
• New example of Yum! Brands having 43,000 restaurants in 135 countries.
• New Exhibit 1.1: “Staying Ahead of the Competition.”
• New example of entrepreneurial college students pitch- ing sustainable business ideas.
• New passage about artificial intelligence simplifying human-technology interfaces.
• New example of Quicken Loans Rocket Mortgage appli- cations taking minutes to complete.
• New passage about Facebook entering the job posting space to compete against LinkedIn.
Chapter 2 • New Management in Action about Jeff Bezos creating
Amazon’s organizational environment.
• New Multiple Generations at Work about “portfolio careers” becoming the new normal.
• New Social Enterprise about the Paris Agreement and combating climate change.
• New example of Microsoft’s HoloLens teaching medical students about human anatomy.
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• New passage about Wells Fargo’s incentive system lead- ing to a major corporate scandal.
• New example about Amazon suing companies that sell false positive reviews on its site.
• Revised Exhibit 5.2: “Examples of Decisions Made under Different Ethical Systems.”
• New example about Nabisco’s utilitarian decision to lay off 1,200 workers at a Chicago plant.
• Updated Exhibit 5.3: “Current Ethical Issues in Business.”
• New Exhibit 5.6: “A Process for Ethical Decision Making.”
• New example about Starbucks building Leadership Energy and Environmental Design (LEED) stores in 20 countries.
Chapter 6 • New Management in Action about Alibaba’s evolution
to a global brand.
• New example of Harley-Davidson’s marketing of motor- cycles to riders in international markets.
• New example of Chinese companies purchasing U.S. firms and divisions like Starwood Hotels, Smithfield Foods, and GE’s appliance business.
• Updated Exhibit 6.1: “Top 10 Global Firms.”
• New example of a small business, AppIt, expanding internationally by acquiring a software development company in India.
• New example about the Philippines becoming a popular location for outsourcing.
• New passage about McDonald’s collaborating with an Indian entrepreneur to adapt its menu (e.g., “Chicken Maharajah Mac”) to the vegetarian country.
Chapter 7 • New Management in Action about Starbucks’ entrepre-
neurial beginnings.
• New example about 28 million small businesses generat- ing over half of all jobs in the U.S.
• Updated Exhibit 7.2: “Successful Entrepreneurs Who Started in Their 20s.”
• New examples of franchises including Jimmy John’s and Jazzercise.
• Updated Multiple Generations at Work: “Millennial Entre- preneurs Can Learn from Others with More Experience.”
• New passage about Barbara Nascimento, founder of The Traveller Tours in Portugal, describing how to start a business.
• New example of Gordon Logan, CEO of Sports Clips, leveraging the skills of a top management team.
• Revised Exhibit 2.5: “Potential Substitutes and Complements.”
• New example of AstraZeneca losing patent protection of its $5 billion product, Crestor.
• New passage on organizational challenges associated with acquisitions.
• New example of Target investing in “green chemistry innovation.”
Chapter 3 • New Management in Action about Uber’s questionable
decision making.
• New example of General Electric using data analytics to improve efficiencies of digital wind farms.
• Updated Exhibit 3.2: “Comparison of Types of Decisions.”
• New passage about National Geographic’s “Wanderlust” social media photo competition.
• New Exhibit 3.3: “The Phases of Decision Making.”
• New example about IDEO suggesting ways to encourage employee creativity.
• New Exhibit 3.8: “Managing Group Decision Making.”
• New example about Havenly crowdsourcing feedback on its pricing and new product ideas.
Chapter 4 • Updated Management in Action about Walt Disney
scripting its own success.
• Revised Exhibit 4.1: “Decision-Making Stages and Formal Planning Steps.”
• New passage about General Motors and Lyft forming an alliance to create a fleet of on-demand autonomous vehicles.
• Revised Exhibit 4.3: “Hierarchy of Goals and Plans.”
• New passage about Chipotle’s challenges with recent food-safety events.
• New Exhibit 4.5: “The Strategic Management Process.”
• New passage about Elon Musk committing to enable human travel to Mars.
• New example of the U.S. Environmental Protection Agency’s methane-to-energy projects.
Chapter 5 • New Multiple Generations at Work about Millennials
being bullish on business.
• New Social Enterprise about India’s Barefoot College, a college for the poor by the poor.
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• New example of the U.S. government considering major changes to the H-1B temporary visa program.
• New passage on companies settling discrimination law- suits brought by employees.
Chapter 11 • New Management in Action about diversity and inclu-
sion at Apple.
• Updated Social Enterprise about managing diversity at Change.org.
• Updated example about changing workforce demographics.
• Updated Exhibit 11.3: “Top Ten Most Powerful Women Executives.”
• New example of Kaiser Permanente, AT&T, and MasterCard continuing their strong commitment to diversity.
• Updated example of the number of women in leadership positions in S&P 500 companies.
• New example of percentage of individuals with disabili- ties who are employed.
• Updated Exhibit 11.6: “Some Top Executives of Color.”
Chapter 12 • Updated Management in Action about Indra Nooyi’s
leading PepsiCo to perform with purpose.
• New Social Enterprise about Elizabeth Hausler’s engi- neering of disaster-proof homes.
• New example of Richard Branson, CEO of Virgin Group, envisioning a world powered by renewable energy by 2050.
• New Exhibit 12.4: “Sources of Leader Power.”
• Updated example of famous leaders including Margaret Thatcher, Nelson Mandela, Julius Caesar, and George Washington.
• New example of servant leadership philosophies at Zappos, Whole Foods Market, and the Container Store.
• New example of how Cheryl Bachelder, CEO of Popeye’s Louisiana Kitchen, used active listening to increase store sales by 25 percent.
• New passages about lateral, intergroup, and shared leadership.
Chapter 13 • Updated Management in Action about what makes soft-
ware company, SAS, such a great place to work.
• Updated Multiple Generations at Work about Millennials wanting to fulfill higher-order needs.
• Updated Social Enterprise about giving veterans a renewed sense of purpose.
Chapter 8 • Updated Management in Action about leadership and
structural changes at General Motors.
• Updated Social Enterprise about Kiva’s approach to organizing.
• Updated Multiple Generations at Work about online networks replacing traditional hierarchies.
• New examples of Shake Shack, Microsoft, and Sanofi using top management teams.
• New Exhibit 8.2: “Examples of Differentiation.”
• New Exhibit 8.13: “A Network Organization.”
• New examples of how Southwest Airlines, MasterCard, SAP, and Target are integrating marketing and commu- nications functions.
• New example of how the Internal Revenue Service is organized around customer groups.
Chapter 9 • New passages about organizing around ordinary and
dynamic capabilities.
• New example of Canon’s core capability in innovative image technology.
• New example about Dr Pepper Snapple Group, Coca- Cola, and PepsiCo forming an alliance to cut by 25 percent the amount of sugar in their soft drinks by 2025.
• Revised Exhibit 9.2: “How I’s Can Become We’s.”
• New example of Walmart’s CEO trying to reduce bureaucracy while encouraging employees to take more initiative.
• New example of Capital One using predictive analytics to make credit card offers to customers.
• New examples of small and large batch technologies.
Chapter 10 • Updated Management in Action about Google’s ability
to hire top talent.
• Updated Social Enterprise about business school gradu- ates working for social enterprises.
• Updated Multiple Generations at Work about college students needing soft skills.
• New example about Kayak, Etsy, and W. L. Gore creat- ing unique organization cultures.
• New Exhibit 10.1: “An Overview of the HR Planning Process.”
• New examples about John Deere and Siemens Energy finding creative ways to train young employees through a combination of academic and hands-on training.
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• Updated Multiple Generations at Work about companies shifting to more frequent performance reviews.
• New passage about Chipotle Mexican Grill trying to cor- rect its food-safety challenges.
• New example of Home Depot using six sigma to improve customer checkout processes.
• New passage about the role of board members in rela- tion to governance of companies.
• New passage about feedback control and its relationship to employee performance.
• New example of Toyota asking “Why?” to identify root causes of problems.
Chapter 17 • New Management in Action about Elon Musk being an
innovator extraordinaire.
• New Social Enterprise about India-based Piramal Sarvajal providing clean water via “Water ATMs.”
• New Multiple Generations at Work about tech-savvy Gen Z entering the workforce
• New Exhibit 17.1: “Innovation Types with Examples.”
• New passage about retailers like Macy’s in New York attracting young shoppers to stores.
• New example of virtual health care for annual patient visits reducing costs.
• New example of biosensor patches being applied to patients’ skin to monitor vital signs.
• New passage about Google’s FaceNet research team winning a facial recognition competition.
Chapter 18 • Updated Management in Action about Shell Oil’s lead-
ers facing off with investors over climate change.
• Updated Multiple Generations at Work about Millennials being ready for the future of work.
• New example of Sears losing its dominance in retail.
• New example of world-class centers in San Francisco, London, Munich, Warsaw, and Shenzen.
• New Exhibit 18.3: “Reasons for Resistance to Change.”
• New example of a manager at John Deere implementing change in a gradual manner.
• New Exhibit 18.8: “Opportunity Is Finding Ways to Meet Customers’ Needs.”
• New passage about big data, Internet of Things, and arti- ficial intelligence combining to make cities smarter.
• New Exhibit 18.9: “Learning Cycle: Explore, Discover, Act.”
• New example of the U.S. Department of Homeland Security setting cyber security goals.
• New example of Colorado-based New Belgium Brewery engaging in environmental and sustainability initiatives.
• New passage about how Ryan LLC rewards its employ- ees with 12 weeks of paid pregnancy leave and paid 4-week sabbaticals.
• New passage about Menlo Innovations offering employ- ees creative nonmonetary rewards.
• Updated passages about extrinsic rewards, empower- ment, and quality of work life.
Chapter 14 • Updated Management in Action about self-managed
teams working at Whole Foods Market.
• New Social Enterprise about co-working becoming more popular.
• Updated Multiple Generations at Work about preparing for global virtual teamwork.
• New passage about Cisco Systems relying on employee teams to remain competitive.
• New Exhibit 14.6: “A Four-Stage Model of Dispute Resolution.”
• New example of parallel teams and team-based rewards being used by organizations.
Chapter 15 • New Management in Action about music-sharing plat-
form SoundCloud encouraging the free flow of informa- tion among employees.
• Updated Social Enterprise about when the message is the story.
• New example of company review sites like Glassdoor. com and Salary.com attracting negative posts from employees.
• Updated passage about digital communication and social media.
• Updated passage about communication flowing through all parts of organizations.
• New example of Hilcorp, an oil and gas exploration company, using open book management.
• Updated passage about upward communication and open-door policies.
Chapter 16 • New Management in Action about electronic monitor-
ing of employees' health to control costs.
• Updated Social Enterprise about using multiple ways to measure social impact.
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Many individuals contributed directly to our develop- ment as textbook authors. Dennis Organ provided one of the authors with an initial opportunity and guidance in textbook writing. Jack Ivancevich did the same for one of the other authors. John Weimeister has been a friend and adviser from the very beginning. Thanks also to Christine Scheid for so much good work on previous editions and for continued friendship.
Enthusiastic gratitude to the entire McGraw-Hill Education team, starting with director Mike Ablassmeir, who—and this is more than an aside—spontaneously and impressively knew Rolling Stone’s top three drummers of all time. Mike has long provided deep expertise and an informed perspective, not to mention friendship and managerial cool in everything we do. Not technically an author, Mike is most certainly an educator for us and for the instructors and students who learn from the products he leads.
Special thanks to teammates without whom the book would not exist, let alone be such a prideworthy product:
Jamie Koch: so helpful, resourceful, enthusiastic, fast, and on top of everything;
Christine Vaughan: knowledgeable, tech-savvy, patient, always available to help us navigate the online authoring platform;
Debbie Clare: so creative, energetic, always thinking of unique ideas, and encouraging us to engage in new ways of sharing how much the 13th edition means to us;
Claire Hunter: positive, patient, easily amused (thank- fully), amazingly effective at keeping us on track and focused;
Kerrie Carfagno: great depth and breadth, in both expe- rience and knowledge, thanks for teaching even more stu- dents about our digital world;
Elisa Adams: eloquent, passionate, expressive, and remarkably good at meeting (or beating) deadlines.
Thanks to you all for getting some of our jokes, for being polite about the others, and for being fun as well as talented and dedicated throughout the project.
Finally, we thank our families. Our parents, Jeanine and Tom Bateman, Clara and John Snell, and Rose and Art Konopaske, provided us with the foundation on which we have built our careers. They continue to be a source of great support. Our wives, Mary Jo, Marybeth, and Vania, were encouraging, insightful, and understanding throughout the process. Our children, Lauren, T.J., and James Bateman; Sara, Jack, and Emily Snell; and Nick and Isabella Konopaske, provided an unending source of inspiration for our work and our nonwork. Thank you.
Thomas S. Bateman Charlottesville, VA
Scott A. Snell Charlottesville, VA
Robert Konopaske San Marcos, TX
A Team Effort This book is the product of a fantastic McGraw-Hill team. Moreover, we wrote this book believing that we are part of a team with the course instructor and with students. The entire team is responsible for the learning process.
Our goal, and that of your instructor, is to create a posi- tive learning environment in which you can excel. But in the end, the raw material of this course is just words. It is up to you to use them as a basis for further reflection, deep learn- ing, and constructive action.
What you do with the things you learn from this course, and with the opportunities the future holds, counts. As a man- ager, you can make a dramatic difference for yourself and for other people. What managers do matters tremendously.
Acknowledgments This book could not have been written and published with- out the valuable contributions of many individuals.
Special thanks to Lily Bowles, Taylor Gray, and Meg Nexsen for contributing their knowledge, insights, and research. Thanks to Michael Dutch for his contributions to the Instructor’s Manual and PowerPoint Presentations, as well as providing insights whenever we call upon him.
Our reviewers over the last 12 editions contributed time, expertise, and terrific ideas that significantly enhanced the quality of the text. The reviewers of the 13th edition are
Germaine Albuquerque Essex County College
Derek B. Bardell Delgado Community College
Andrew A. Bennett Old Dominion University
Harry Bernstein Essex County College
Jennifer Blahnik Lorain County Community College
Karen Bridgett Essex County College
Angela Bruns Baton Rouge Community College
John Ephraim Butt University of North Carolina–Charlotte
Holly A. Caldwell Bridgewater College
Frank Carothers Somerset Community College
Robert Cote Lindenwood University
Darrell Cousert University of Indianapolis
Tony Daniel Shorter University
John T. Finley Columbus State University
Roy Lynn Godkin Lamar University
Dan Hallock University of North Alabama
Anne Kelly Hoel University of Wisconsin–Stout
Carrie S. Hurst Tennessee State University
Sridharan Krishnaswami Old Dominion University
Debra D. Kuhl Pensacola State College
Thomas Norman California State University
Shane Spiller Western Kentucky University
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In this ever more competitive environment, there are six essential types of performance on which the organization beats, equals,
or loses to the competition: cost, quality, speed, innovation, service, and sustainability. These six performance dimensions,
when done well, deliver value to the customer and competitive advantage to you and your organization.
Throughout the text, Bateman, Snell, and Konopaske remind students of these six dimensions and their impact on the bottom
line with marginal icons. This results-oriented approach is a unique hallmark of this textbook.
New questions in this edition further emphasize the bottom line. The Instructor’s Manual has answers to these questions.
Bottom Line
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
First Pages
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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.
Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.
Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34
The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.
Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35
As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.
Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize
good customer service provide a critical
competitive advantage. Identify some excellent and poor customer service that
you have received.
FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images
EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and
delivering normal orders.
Willingness to meet emergency needs.
Merchandise delivered in good
condition.
Readiness to take back defective
goods and resupply quickly.
Availability of installation and
repair services and parts.
Service charges, whether free or
priced separately.
g
SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.
Q
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In CASE You Haven’t Noticed . . . Bateman, Snell, and Konopaske have put together an outstanding selection of case studies of various lengths that highlight companies’ ups and downs, stimulate learning and understanding, and challenge students to respond.
Instructors will find a wealth of relevant and updated cases in every chapter, using companies—big and small—that students will enjoy learning about.
CHAPTER UNFOLDING CASES
Each chapter begins with a “Management in Action: Manager’s Brief” section that describes an actual organizational situation, leader, or company. The “Manager’s Brief” is referred to again within the chapter in the “Progress Report” section, showing the student how the chapter material relates back to the company, situation, or leader highlighted in the chapter opener. At the end of the chapter, the “Onward” section ties up loose ends and brings the material full circle for the student. Answers to Management in Action section questions can be found in the Instructor’s Manual.
SOCIAL ENTERPRISE
Social Enterprise boxes have been updated in each chapter to familiarize students with this fast-growing sector. Answers to Social Enterprise questions are included in the Instructor’s Manual.
MULTIPLE GENERATIONS AT WORK
In each chapter, a Multiple Generations at Work box has been updated added to highlight some of the intergenerational challenges faced by managers and employees today.
THE DIGITAL WORLD
The Digital World feature offers unique examples of how companies and other users employ digital/social media in ways that capitalize on various ideas in each chapter.
CONCLUDING CASES
Each chapter ends with a case based on disguised but real companies and people that reinforces key chapter elements and themes.
SUPPLEMENTARY CASES
At the end of each part, an additional case is provided for professors who want students to delve further into part topics.
Outstanding Pedagogy Management: Leading & Collaborating in a Competitive World is pedagogically stimulating and is intended to maximize student learning. With this in mind, we used a wide array of pedagogical features—some tried and true, others new and novel:
END-OF-CHAPTER ELEMENTS
• Key terms are page-referenced to the text and are part of the vocabulary-building emphasis. These terms are defined again in the glossary at the end of the book.
• Retaining What You Learned provides clear, concise responses to the learning objectives, giving students a quick reference for reviewing the important concepts in the chapter.
• Discussion Questions, which follow, are thought-provoking questions on concepts covered in the chapter and ask for opinions on controversial issues.
• Experiential Exercises in each chapter bring key concepts to life so students can experience them firsthand.
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Assurance of Learning This 13th edition contains revised learning objectives and learning objectives are called out within the chapter where the content begins. The Retaining What You Learned for each chapter ties the learning objectives back together as well. And, finally, our test bank provides tagging for the learning objective that the question covers, so instructors will be able to test material covering all learning objectives, thus ensuring that students have mastered the important topics.
Comprehensive Supplements INSTRUCTOR’S MANUAL
The Instructor’s Manual was revised and updated to include thorough coverage of each chapter as well as time-saving features such as an outline, key student questions, class prep work assignments, guidance for using the unfolding cases, video supplements, and, finally, PowerPoint slides.
TEST BANK
The Test Bank includes more than 100 questions per chapter in a variety of formats. It has been revised for accuracy and expanded to include a greater variety of comprehension and application (scenario-based) questions as well as tagged with Bloom’s Taxonomy levels and AACSB requirements.
POWERPOINT PRESENTATION SLIDES
The PowerPoint presentation collection contains an easy-to-follow outline including figures downloaded from the text. In addition to providing lecture notes, the slides also include questions for class discussion as well as company examples not found in the textbook. This versatility allows you to create a custom presentation suitable for your own classroom experience.
McGraw-Hill Customer Experience At McGraw-Hill, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our product specialists 24 hours a day to get product training online. Or you can search our knowledge bank of frequently asked questions on our support website. For customer support, call 800-331-5094, submit a support request using our contact us form, http://mpss.mhhe.com/contact.php, or visit www.mhhe.com/support. One of our technical support analysts will be able to assist you in a timely fashion.
MANAGER’S HOT SEAT
This interactive, video-based application puts students in the manager’s hot seat, building critical thinking and decision-making skills and allowing students to apply concepts to real managerial challenges. Students watch as 21 real managers apply their years of experience when confronting unscripted issues such as bullying in the workplace, cyber loafing, globalization, intergenerational work conflicts, workplace violence, and leadership versus management. In addition, Manager’s Hot Seat interactive applications, featuring video cases and accompanying quizzes, can be found in Connect.
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Many educational institutions today focus on the notion of assurance of learning, an important element of some accreditation standards. Management: Leading & Collaborating in a Competitive World is designed specifically to support instructors’ assurance of learning initiatives with a simple yet powerful solution. Each test bank question for Management: Leading & Collaborating in a Competitive World maps to a specific chapter learning objective listed in the text. Instructors can use our test bank software, EZ Test, to easily query for learning objectives that directly relate to the learning outcomes for their course. Instructors can then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collection and presentation of assurance of learning data simple and easy.
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Understanding the importance and value of AACSB accreditation, Management: Leading & Collaborating in a Competitive World recognizes the curricula guidelines detailed in the AACSB standards for business
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McGRAW-HILL CUSTOMER EXPERIENCE GROUP CONTACT INFORMATION
At McGraw-Hill Education, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our Product Specialists 24 hours a day to get product training online. Or you can search our knowledge bank of Frequently Asked Questions on our support website. For Customer Support, call 800-331-5094 or visit www.mhhe.com/support. One of our Technical Support Analysts will be able to assist you in a timely fashion.
accreditation by connecting selected questions in the text and the test bank to the eight general knowledge and skill guidelines in the AACSB standards. The statements contained in Management: Leading & Collaborating in a Competitive World are provided only as a guide for the users of this product. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While the Management: Leading & Collaborating in a Competitive World teaching package makes no claim of any specific AACSB qualification or evaluation, we have within Management: Leading & Collaborating in a Competitive World labeled selected questions according to the eight general knowledge and skills areas.
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©McGraw-Hill Education
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Brief Contents
PREFACE VII
PART ONE FOUNDATIONS OF MANAGEMENT 2
1. Managing and Performing 2
2. The External and Internal Environments 38
3. Managerial Decision Making 72
PART TWO PLANNING: DELIVERING STRATEGIC VALUE 102
4. Planning and Strategic Management 102
5. Ethics, Corporate Responsibility, and Sustainability 130
6. International Management 158
7. Entrepreneurship 188
PART THREE ORGANIZING: BUILDING A DYNAMIC ORGANIZATION 222
8. Organization Structure 222
9. Organizational Agility 250
10. Human Resources Management 276
11. Managing the Diverse Workforce 310
PART FOUR LEADING: MOBILIZING PEOPLE 340
12. Leadership 340
13. Motivating for Performance 370
14. Teamwork 402
15. Communicating 428
PART FIVE CONTROLLING: LEARNING AND CHANGING 458
16. Managerial Control 458
17. Managing Technology and Innovation 488
18. Creating and Leading Change 516
Notes 547
Glossary/Subject Index 594
Name Index 620
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Actively Manage Your Relationship with Your Organization 20 Survive and Thrive 21
MANAGEMENT IN ACTION ONWARD 22 Key Terms 23
Retaining What You Learned 23
Discussion Questions 24
Experiential Exercises 25
CONCLUDING CASE 27
APPENDIX A 28
KEY TERMS 34
DISCUSSION QUESTIONS 35
CHAPTER 2
The External and Internal Environments 38 MANAGEMENT IN ACTION MANAGER’S BRIEF 39 The Macroenvironment 41
The Economy 41 Technology 42 Laws and Regulations 43
MULTIPLE GENERATIONS AT WORK 44 Demographics 44 Social Issues 45 Sustainability and the Natural Environment 45
SOCIAL ENTERPRISE 46 The Competitive Environment 46
Competitors 47 New Entrants 48 Substitutes and Complements 49 Suppliers 50 Customers 50
MANAGEMENT IN ACTION PROGRESS REPORT 52 Environmental Analysis 52
CHAPTER 1
Managing and Performing 2 MANAGEMENT IN ACTION MANAGER’S BRIEF 3 Managing in a Competitive World 4
Globalization 4 Technological Change 5 Knowledge Management 6 Collaboration across Boundaries 6
MULTIPLE GENERATIONS AT WORK 7
THE DIGITAL WORLD 7 Managing for Competitive Advantage 8
Innovation 8 Quality 8 Service 9 Speed 9 Cost Competitiveness 10 Sustainability 11 Delivering All Types of Performance 11
The Functions of Management 12 Planning: Delivering Strategic Value 12 Organizing: Building a Dynamic Organization 12
SOCIAL ENTERPRISE 13 Leading: Mobilizing People 13 Controlling: Learning and Changing 14 Performing All Four Management Functions 14
MANAGEMENT IN ACTION PROGRESS REPORT 15 Management Levels and Skills 15
Top-Level Managers 15 Middle-Level Managers 16 Frontline Managers 16 Working Leaders with Broad Responsibilities 16 Must-Have Management Skills 17
You and Your Career 18 Be Both a Specialist and a Generalist 19 Be Self-Reliant 19 Connect with People 20
Contents
PART ONE FOUNDATIONS OF MANAGEMENT
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Identifying and Diagnosing the Problem 77 Generating Alternative Solutions 77 Evaluating Alternatives 78 Making the Choice 80 Implementing the Decision 80
MANAGEMENT IN ACTION PROGRESS REPORT 81 Evaluating the Decision 82
The Best Decision 82 Barriers to Effective Decision Making 83
Psychological Biases 83 Time Pressures 84
THE DIGITAL WORLD 85 Social Realities 85
Decision Making in Groups 85 Potential Advantages of Using a Group 85 Potential Problems of Using a Group 86
Managing Group Decision Making 87 Leadership Style 87 Constructive Conflict 87 Encouraging Creativity 89 Brainstorming 90
MULTIPLE GENERATIONS AT WORK 91 Organizational Decision Making 91
Constraints on Decision Makers 91 Organizational Decision Processes 92 Decision Making in a Crisis 92
MANAGEMENT IN ACTION ONWARD 94 Key Terms 95
Retaining What You Learned 95
Discussion Questions 96
Experiential Exercises 96
CONCLUDING CASE 98
PART ONE SUPPORTING CASE 99
Environmental Scanning 53 Scenario Development 53 Forecasting 54 Benchmarking 54
Actively Managing the External Environment 55 Changing the Environment You Are In 55 Influencing Your Environment 55 Adapting to the Environment: Changing the Organization 56 Choosing an Approach 58
The Internal Environment of Organizations: Culture and Climate 58
Organization Culture 58
THE DIGITAL WORLD 60
MANAGEMENT IN ACTION ONWARD 61 Organizational Climate 61
Key Terms 62
Retaining What You Learned 62
Discussion Questions 64
Experiential Exercises 64
CONCLUDING CASE 67
APPENDIX B 68
KEY TERMS 70
CHAPTER 3
Managerial Decision Making 72 MANAGEMENT IN ACTION MANAGER’S BRIEF 73 Characteristics of Managerial Decisions 74
Lack of Structure 74 Uncertainty and Risk 75
SOCIAL ENTERPRISE 76 Conflict 76
The Phases of Decision Making 77
PART TWO PLANNING: DELIVERING STRATEGIC VALUE
CHAPTER 4
Planning and Strategic Management 102 MANAGEMENT IN ACTION MANAGER’S BRIEF 103 An Overview of Planning Fundamentals 104
The Basic Planning Process 104
SOCIAL ENTERPRISE 107
Levels of Planning 108 Strategic Planning 108 Tactical and Operational Planning 109 Aligning Tactical, Operational, and Strategic Planning 110
Strategic Planning 111
MANAGEMENT IN ACTION PROGRESS REPORT 112 Step 1: Establishing Mission, Vision, and Goals 113 Step 2: Analyzing External Opportunities and Threats 114
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THE DIGITAL WORLD 116 Step 3: Analyzing Internal Strengths and Weaknesses 116 Step 4: SWOT Analysis and Strategy Formulation 118
MULTIPLE GENERATIONS AT WORK 120 Step 5: Strategy Implementation 123 Step 6: Strategic Control 124
MANAGEMENT IN ACTION ONWARD 125 Key Terms 126
Retaining What You Learned 126
Discussion Questions 127
Experiential Exercises 128
CONCLUDING CASE 129
CHAPTER 5
Ethics, Corporate Responsibility, and Sustainability 130 MANAGEMENT IN ACTION MANAGER’S BRIEF 131
It’s a Big Issue 132 It’s a Personal Issue 133
MULTIPLE GENERATIONS AT WORK 134 Ethics 135
Ethical Systems 135 Business Ethics 137 The Ethics Environment 137
THE DIGITAL WORLD 140 Ethical Decision Making 141 Courage 142
MANAGEMENT IN ACTION PROGRESS REPORT 143 Corporate Social Responsibility 144
Contrasting Views 146 Reconciliation 146
The Natural Environment and Sustainability 147 A Risk Society 147
SOCIAL ENTERPRISE 148 Ecocentric Management 149 Environmental Agendas for the Future 150
MANAGEMENT IN ACTION ONWARD 151 Key Terms 151
Retaining What You Learned 152
Discussion Questions 153
Experiential Exercises 154
CONCLUDING CASE 155
CHAPTER 6
International Management 158 MANAGEMENT IN ACTION MANAGER’S BRIEF 159 Managing in Today’s (Global) Economy 160
International Challenges and Opportunities 160 Outsourcing and Jobs 162
The Geography of Business 163 Western Europe 164 Asia: China and India 165 The Americas 166
SOCIAL ENTERPRISE 167 Africa and the Middle East 167
Global Strategy 168 Pressures for Global Integration 168 Pressures for Local Responsiveness 169 Choosing a Global Strategy 170
MANAGEMENT IN ACTION PROGRESS REPORT 172 Entry Mode 173
Exporting 173 Licensing 174 Franchising 174 Joint Ventures 175 Wholly Owned Subsidiaries 175
Working Overseas 176 Skills of the Global Manager 177 Understanding Cultural Issues 177
MULTIPLE GENERATIONS AT WORK 180 Ethical Issues in International Management 181
THE DIGITAL WORLD 182
MANAGEMENT IN ACTION ONWARD 182 Key Terms 183
Retaining What You Learned 183
Discussion Questions 184
Experiential Exercises 185
CONCLUDING CASE 186
CHAPTER 7
Entrepreneurship 188 MANAGEMENT IN ACTION MANAGER’S BRIEF 189 Entrepreneurship 192
Why Become an Entrepreneur? 192 What Does It Take to Succeed? 193 What Business Should You Start? 194
SOCIAL ENTERPRISE 197 What Does It Take, Personally? 199 Success and Failure 200
MANAGEMENT IN ACTION PROGRESS REPORT 201
THE DIGITAL WORLD 202 Common Management Challenges 202 Increasing Your Chances of Success 204
MULTIPLE GENERATIONS AT WORK 209 Corporate Entrepreneurship 209
Building Support for Your Idea 210 Building Intrapreneurship 210 Management Challenges 210 Entrepreneurial Orientation 211
MANAGEMENT IN ACTION ONWARD 212
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CHAPTER 8
Organization Structure 222 MANAGEMENT IN ACTION MANAGER’S BRIEF 223 Fundamentals of Organizing 224
Differentiation 224 Integration 225
The Vertical Structure 226 Authority in Organizations 226 Hierarchical Levels 227 Span of Control 228 Delegation 229 Decentralization 230
The Horizontal Structure 232 The Functional Organization 232
SOCIAL ENTERPRISE 234 The Divisional Organization 234 The Matrix Organization 236
MANAGEMENT IN ACTION PROGRESS REPORT 237 The Network Organization 239
MULTIPLE GENERATIONS AT WORK 241 Organizational Integration 241
THE DIGITAL WORLD 242 Coordination by Standardization 242 Coordination by Plan 242 Coordination by Mutual Adjustment 243 Coordination and Communication 243
Looking Ahead 245
MANAGEMENT IN ACTION ONWARD 245 Key Terms 246
Retaining What You Learned 246
Discussion Questions 247
Experiential Exercises 247
CONCLUDING CASE 249
CHAPTER 9
Organizational Agility 250 MANAGEMENT IN ACTION MANAGER’S BRIEF 251 The Responsive Organization 252 Strategy and Organizational Agility 253
MULTIPLE GENERATIONS AT WORK 254 Organizing around Core Capabilities 254 Strategic Alliances 255 The Learning Organization 256 The High-Involvement Organization 256
Organizational Size and Agility 257 The Case for Big 257 The Case for Small 257 Being Big and Small 258
SOCIAL ENTERPRISE 259
MANAGEMENT IN ACTION PROGRESS REPORT 260 Customers and the Responsive Organization 260
Customer Relationship Management 260
THE DIGITAL WORLD 262 Quality Initiatives 262 Reengineering 264
Technology and Organizational Agility 265 Types of Technology Configurations 265 Organizing for Flexible Manufacturing 266 Organizing for Speed: Time-Based Competition 268
Final Thoughts on Organizational Agility 270
MANAGEMENT IN ACTION ONWARD 271 Key Terms 271
Retaining What You Learned 272
Discussion Questions 272
Experiential Exercises 273
CONCLUDING CASE 274
PART THREE ORGANIZING: BUILDING A DYNAMIC ORGANIZATION
Key Terms 212
Retaining What You Learned 212
Discussion Questions 214
Experiential Exercises 214
CONCLUDING CASE 217
PART TWO SUPPORTING CASE 217
APPENDIX C 219
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CHAPTER 10
Human Resources Management 276 MANAGEMENT IN ACTION MANAGER’S BRIEF 277 Strategic Human Resources Management 278
The HR Planning Process 279
SOCIAL ENTERPRISE 280 Staffing 282
Recruitment 282 Selection 283
THE DIGITAL WORLD 284 Workforce Reductions 286
Developing the Workforce 290 Training and Development 290
MULTIPLE GENERATIONS AT WORK 291
MANAGEMENT IN ACTION PROGRESS REPORT 292 Performance Appraisal 292
What Do You Appraise? 293 Who Should Do the Appraisal? 294 How Do You Give Employees Feedback? 295
Designing Reward Systems 296 Pay Decisions 296 Incentive Systems and Variable Pay 297 Executive Pay and Stock Options 298 Employee Benefits 299 Legal Issues in Compensation and Benefits 299 Health and Safety 300
Labor Relations 300 Labor Laws 301 Unionization 301 Collective Bargaining 302 What Does the Future Hold? 303
MANAGEMENT IN ACTION ONWARD 304 Key Terms 304
Retaining What You Learned 305
Discussion Questions 306
Experiential Exercises 306
CONCLUDING CASE 308
CHAPTER 11
Managing the Diverse Workforce 310 MANAGEMENT IN ACTION MANAGER’S BRIEF 311 Diversity: A Brief History 312 Diversity Today 313
The Changing Workforce 314
MULTIPLE GENERATIONS AT WORK 316 The Age of the Workforce 320
Managing Diversity and Affirmative Action 321 Advantage through Diversity and Inclusion 321 Challenges of Diversity and Inclusion 322
MANAGEMENT IN ACTION PROGRESS REPORT 325 Multicultural Organizations 325 How to Cultivate a Diverse Workforce 326
Top Management’s Leadership and Commitment 326
SOCIAL ENTERPRISE 327 Organizational Assessment 327 Attracting Employees 328 Training Employees 329 Retaining Employees 329
THE DIGITAL WORLD 330
MANAGEMENT IN ACTION ONWARD 332 Key Terms 332
Retaining What You Learned 332
Discussion Questions 334
Experiential Exercises 334
CONCLUDING CASE 336
PART THREE SUPPORTING CASE 337
PART FOUR LEADING: MOBILIZING PEOPLE
CHAPTER 12
Leadership 340 MANAGEMENT IN ACTION MANAGER’S BRIEF 341
What Do We Want from Our Leaders? 342
MULTIPLE GENERATIONS AT WORK 343 Vision 343 Leading and Managing 345
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Leading and Following 346
Power and Leadership 346 Sources of Power 346
Traditional Approaches to Understanding Leadership 348 Leader Traits 348 Leader Behaviors 349 The Effects of Leader Behavior 351 Situational Approaches to Leadership 353
MANAGEMENT IN ACTION PROGRESS REPORT 357 Contemporary Perspectives on Leadership 358
Charismatic Leadership 358 Transformational Leadership 359 Authenticity 360 Opportunities for Leaders 361
SOCIAL ENTERPRISE 362 A Note on Courage 362
Developing Your Leadership Skills 363 How Do I Start? 363
THE DIGITAL WORLD 364 What Are the Keys? 364
MANAGEMENT IN ACTION ONWARD 364 Key Terms 365
Retaining What You Learned 365
Discussion Questions 367
Experiential Exercises 367
CONCLUDING CASE 368
CHAPTER 13
Motivating for Performance 370 MANAGEMENT IN ACTION MANAGER’S BRIEF 371 Motivating for Performance 372 Setting Goals 373
Goals That Motivate 373 Stretch Goals 374 Limitations of Goal Setting 374 Set Your Own Goals 375
Reinforcing Performance 375 (Mis)Managing Rewards and Punishments 376 Managing Mistakes 378 Providing Feedback 378
Performance-Related Beliefs 378 The Effort-to-Performance Link 379 The Performance-to-Outcome Link 379 Impact on Motivation 380 Managerial Implications of Expectancy Theory 380
MANAGEMENT IN ACTION PROGRESS REPORT 381 Maslow’s Need Hierarchy 381
Understanding People’s Needs 381
MULTIPLE GENERATIONS AT WORK 383
Alderfer’s ERG Theory 383 McClelland’s Needs 384 Need Theories: International Perspectives 384
Designing Motivating Jobs 385 Job Rotation, Enlargement, and Enrichment 385
SOCIAL ENTERPRISE 386 Herzberg’s Two-Factor Theory 387 The Hackman and Oldham Model of Job Design 387 Empowerment 388
Achieving Fairness 390 Assessing Equity 390 Restoring Equity 391 Procedural Justice 391
Employee Satisfaction and Well-Being 392
THE DIGITAL WORLD 393 Quality of Work Life 393
MANAGEMENT IN ACTION ONWARD 394 Psychological Contracts 394
Key Terms 395
Retaining What You Learned 395
Discussion Questions 396
Experiential Exercises 397
CONCLUDING CASE 399
CHAPTER 14
Teamwork 402 MANAGEMENT IN ACTION MANAGER’S BRIEF 403 The Contributions of Teams 404 Types of Teams 404
MULTIPLE GENERATIONS AT WORK 406 Self-Managed Teams 406
MANAGEMENT IN ACTION PROGRESS REPORT 407 How Groups Become Real Teams 408
Group Processes 408 Critical Periods 409
THE DIGITAL WORLD 410 Teaming Challenges 410 Why Groups Sometimes Fail 410
Building Effective Teams 411 Performance Focus 411 Motivating Teamwork 412 Member Contributions 412
SOCIAL ENTERPRISE 413 Norms 413 Roles 414 Cohesiveness 414 Building Cohesiveness and High-Performance Norms 416
Managing Lateral Relationships 417 Managing Outward 417
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PART FIVE CONTROLLING: LEARNING AND CHANGING
CHAPTER 16
Managerial Control 458 MANAGEMENT IN ACTION MANAGER’S BRIEF 459 Bureaucratic Control Systems 461
The Control Cycle 461
SOCIAL ENTERPRISE 463 Approaches to Bureaucratic Control 465
MULTIPLE GENERATIONS AT WORK 467 Management Audits 468 Budgetary Controls 469 Financial Controls 471 Problems with Bureaucratic Control 474
MANAGEMENT IN ACTION PROGRESS REPORT 475 Designing Effective Control Systems 476
The Other Controls: Markets and Clans 480 Market Control 480
Clan Control: The Role of Empowerment and Culture 482
MANAGEMENT IN ACTION ONWARD 483 Key Terms 483
Retaining What You Learned 483
Discussion Questions 485
Experiential Exercises 485
CONCLUDING CASE 487
CHAPTER 17
Managing Technology and Innovation 488 MANAGEMENT IN ACTION MANAGER’S BRIEF 489 Technology and Innovation 490
Technology Life Cycle 491 Diffusion of Technological Innovations 492
Lateral Role Relationships 418 Managing Conflict 418 Conflict Styles 419 Being a Mediator 420 Electronic and Virtual Conflict 421
MANAGEMENT IN ACTION ONWARD 422 Key Terms 422
Retaining What You Learned 423
Discussion Questions 424
Experiential Exercises 424
CONCLUDING CASE 425
CHAPTER 15
Communicating 428 MANAGEMENT IN ACTION MANAGER’S BRIEF 429 Interpersonal Communication 430
One-Way versus Two-Way Communication 430 Communication Pitfalls 431 Mixed Signals and Misperception 432 Oral and Written Channels 433 Digital Communication and Social Media 433
MULTIPLE GENERATIONS AT WORK 436
THE DIGITAL WORLD 437 Media Richness 437
MANAGEMENT IN ACTION PROGRESS REPORT 438 Improving Communication Skills 438
Improving Sender Skills 438
SOCIAL ENTERPRISE 442 Improving Receiver Skills 442
Organizational Communication 444 Downward Communication 445 Upward Communication 447 Horizontal Communication 448 Informal Communication 448 Boundarylessness 449
MANAGEMENT IN ACTION ONWARD 450 Key Terms 450
Retaining What You Learned 450
Discussion Questions 451
Experiential Exercises 452
CONCLUDING CASE 454
PART FOUR SUPPORTING CASE 455
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MULTIPLE GENERATIONS AT WORK 493
SOCIAL ENTERPRISE 494 Technology Leadership and Followership 495
Technology Leadership 495 Technology Followership 497
Assessing Technology Needs 498 Measuring Current Technologies 498 Assessing External Technological Trends 499
Making Technology Decisions 499 Anticipated Market Receptiveness 499 Technological Feasibility 500 Economic Viability 501 Anticipated Capability Development 501 Organizational Suitability 502
MANAGEMENT IN ACTION PROGRESS REPORT 503 Sourcing and Acquiring New Technologies 504
Internal Development 504 Purchase 504 Contracted Development 504 Licensing 504
THE DIGITAL WORLD 505 Technology Trading 505 Research Partnerships and Joint Ventures 505 Acquiring a Technology Owner 505
Technology and Managerial Roles 506 Organizing for Innovation 507
Unleashing Creativity 508 Bureaucracy Busting 509 Design Thinking 509 Implementing Development Projects 510 Technology, Job Design, and Human Resources 511
MANAGEMENT IN ACTION ONWARD 511 Key Terms 512
Retaining What You Learned 512
Discussion Questions 513
Experiential Exercises 514
CONCLUDING CASE 514
CHAPTER 18
Creating and Leading Change 516 MANAGEMENT IN ACTION 517 Becoming World Class 518
Sustainable, Great Futures 518 The Tyranny of the Or 519 The Genius of the And 520 Achieving Sustained Greatness 520 Organization Development 521
Managing Change 522 Motivating People to Change 522
MULTIPLE GENERATIONS AT WORK 524 A General Model for Managing Resistance 524 Enlisting Cooperation 526 Harmonizing Multiple Changes 528
MANAGEMENT IN ACTION PROGRESS REPORT 529 Leading Change 529
Shaping the Future 532 Thinking about the Future 532 Creating the Future 532
THE DIGITAL WORLD 533
SOCIAL ENTERPRISE 534 Shaping Your Own Future 535 Learning and Leading 536
MANAGEMENT IN ACTION ONWARD 538 A Collaborative, Sustainable Future? 539
Key Terms 539
Retaining What You Learned 539
Discussion Questions 540
Experiential Exercises 540
CONCLUDING CASE 542
PART FIVE SUPPORTING CASE 543
CASE INCIDENTS
Notes 547
Glossary/Subject Index 594
Name Index 620
Photo on pages xxiii, xxiv, xxvi, xxvii, and xxix: ©zlikovec/Shutterstock.com RF.
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Foundations of Management
• Managing and Performing • The External and Internal
Environments • Managerial Decision
Making
Planning: Delivering Strategic Value
• Planning and Strategic Management
• Ethics and Corporate Responsibility
• International Management • Entrepreneurship
Strategy Implementation
Organizing: Building a Dynamic Organization
• Organization Structure • Organizational Agility • Human Resources
Management • Managing the Diverse
Workforce
Leading: Mobilizing People
• Leadership • Motivating for Performance • Teamwork • Communicating
Controlling: Learning and Changing
• Managerial Control • Managing Technology and
Innovation • Creating and Leading
Change
The Management Process
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22
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Managing in a Competitive World Globalization Technological Change Knowledge Management Collaboration across Boundaries
Managing for Competitive Advantage Innovation Quality Service Speed Cost Competitiveness Sustainability
Delivering All Types of Performance
The Functions of Management Planning: Delivering Strategic Value Organizing: Building a Dynamic Organization Leading: Mobilizing People Controlling: Learning and Changing Performing All Four Management Functions
Management Levels and Skills Top-Level Managers Middle-Level Managers Frontline Managers Working Leaders with Broad Responsibilities Must-Have Management Skills
You and Your Career Be Both a Specialist and a Generalist Be Self-Reliant Connect with People Actively Manage Your Relationship with Your Organization Survive and Thrive
After studying Chapter 1, you will be able to:
Summarize the major challenges of managing in the new competitive landscape.
Describe the sources of competitive advantage for a company.
Explain how the functions of management are evolving in today’s business environment.
Compare how the nature of management varies at different organizational levels.
Define the skills you need to be an effective manager.
Understand the principles that will help you manage your career.
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6
CHAPTER 1
Managing and Performing
Management means, in the last analysis, the substitution of thought for brawn and muscle, of knowledge for folklore and tradition, and of
cooperation for force.
—PETER DRUCKER
CHAPTER OUTLINELEARNING OBJECTIVES
PART ONE FOUNDATIONS OF MANAGEMENT
©Jirsak/Shutterstock.com RF
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3
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What does a manager do? Dream up a bold new mis- sion for the company? Build a corporate structure that ensures success? Lead and inspire others? Keep the company on track toward its goals?
Most managers perform all these basic functions to some degree, perhaps none more publicly or suc- cessfully than Mark Zuckerberg, founder and CEO of Facebook Inc. Zuckerberg has seen his company grow into a unique worldwide phenomenon with almost 2 billion active users, more than 600 times as many people as the average daily viewership of CNN, Fox, and MSNBC combined. Given that the company reported $8.8 billion in revenue in 2016, it seems Zuckerberg’s passion for connecting people with one another has more than paid off. Facebook’s unparal- leled success does not mean Zuckerberg has no man- agement challenges left, however.
Past hurdles that Zuckerberg had to deal with included the need for cash to fund Facebook’s rapid growth. In 2012 he announced an initial public offering of stock to attract that cash, and then saw the company go through a damaging initial drop in its stock price. Next came the soaring popularity of smartphones, encouraging Facebook users to go mobile in droves. Facebook was forced to quickly develop its capability to carry advertising on its mobile app. Those mobile ads now bring in 80 percent of the company’s reve- nue, up from zero in 2012.
More recent hurdles include charges that Facebook aided the spread of fake news during the 2016 U.S. presidential election campaign. Zuckerberg responded by developing partnerships with outside fact-checking groups to flag stories of questionable reliability. He
directed upgrades of Facebook’s user data tracking to counter problems of misreporting results to adver- tisers, and he wants to focus on artificial intelligence to prevent the sharing of inappropriate content. That story continues to unfold. Meanwhile Facebook teams are working to keep up with newer competitors like Snapchat by adding to the video capabilities of its Instagram platform.
While he is organizing and leading the company and refining its operations, Zuckerberg, ranked #1 in 2017 among the top 50 business people by Fortune magazine, is also still shaping plans for what he hopes Facebook can be. He recently released a bold state- ment of his views on its next big goal: to bring all of humanity together in a safe and informed “global community.”1
Management in Action ONE WELL-KNOWN MANAGER: FACEBOOK’S MARK ZUCKERBERG
Management challenges are ever-changing. What is going on now for Facebook
and Mark Zuckerberg? As you read this chapter, notice the wide variety of skills
that Zuckerberg needs to help Facebook meet its goals. Also, think about how
managing people, money, and other resources enables Facebook and other
organizations to accomplish far more than individuals acting independently could
ever achieve.
M A
N A
G E
R ’S
B R
IE F
P R
O G
R E
S S
R E
P O
R T
O N
W A
R D
©Frederic Legrand - COMEO/Shutterstock.com RF
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4 Part One Foundations of Management
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Facebook’s CEO, Mark Zuckerberg, is one of the most interesting leaders in business today. He is an innovator who combines technological know-how with a vision for the future and an obsessive drive to please customers. Together, those qualities have helped him build a business idea into a major corporation that continues to transform how people connect with one another.2
Zuckerberg is a standout among other top business leaders. Named 2016 Businessperson of the Year by Fortune magazine, he has successfully navigated the $350 billion media com- pany through challenging times, as when Facebook was slow to respond to the shift to mobile, and the clumsy handling of its initial public offering.3
Consider the department store Macy’s as a contrasting example. Following weaker than expected 2016 holiday sales, Macy’s announced that it would close 63 stores and cut 10,000 jobs.4 Terry Lungren, who stepped down as CEO in February 2017, was replaced by Jeff Gennette, who has the daunting task of turning around seven straight quarters of sales declines.5 Time will tell whether Macy’s can compete effectively against changing shopping habits driven by online retail giants like Amazon.
In business, there is no alternative to managing well. Companies may fly high for a while, but they cannot do well for very long without good management. It’s the same for individu- als: the best performers succeed by focusing on fundamentals, knowing what’s important, and managing well. The aim of this book is to help you succeed in those pursuits.
Management is a challenge requiring
knowledge and skills to adapt to new
circumstances.
When the economy is soaring, business seems easy. Starting an Internet company looked easy in the 1990s, and ventures related to the real estate boom looked like a sure thing just a few years ago. But investors grew wary of dot-com start-ups, and the demand for new homes dropped off the table when the economy crashed in late 2008. At such times, it becomes evident that management is a challenge requiring knowledge and skills to adapt to new circumstances.
What defines the competitive landscape of today’s business? You will be reading about many relevant issues in the coming chapters, but we begin here by highlighting four ongoing challenges that character- ize the business landscape: globalization, technologi- cal change, the importance of knowledge and ideas, and collaboration across organizational boundaries.
Globalization Far more than in the past, today’s enterprises are global, with offices and production facili- ties in countries all over the world. Corporations operate worldwide, transcending national borders. Companies that want to grow often need to tap international markets. The change from a local to a global marketplace is irreversible.6
Fortune magazine annually publishes a list of the world’s most admired companies. Whereas U.S. companies used to dominate, Switzerland-based Nestlé was the most admired maker of consumer food products in 2016, Germany’s BMW was the most admired pro- ducer of motor vehicles, and Singapore Airlines was the most admired airlines company.7 According to Fortune’s 2016 Global 500 list, the five largest firms are Walmart (U.S.), State Grid (China), China National Petroleum (China), Sinopec Group (China), and Royal Dutch Shell (British-Dutch).8
Globalization also means that a company’s talent and competition can come from any- where. As with its sales, more than half (60 percent) of GE’s 333,000 employees live out- side the United States.9 Kentucky-based Yum! Brands (KFC, Pizza Hut, and Taco Bell) has over 43,000 restaurants in more than 135 countries. In 2016, about half of its profits came from outside the United States. On average, Yum! Brands opens six stores per day in inter- national locations.10
LO 1
Managing in a Competitive World
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Managing and Performing Chapter 1 5
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PepsiCo’s chief executive, Indra Nooyi, brought a much- needed global viewpoint to a company whose international business was growing three times faster than sales in the United States. Nooyi, who was raised in India and educated there and in the United States, steered the company toward more “better for you” and “good for you” snacks such as a Quaker beverage in China, Natural Balance snack bar in Mexico, and KeVita probiotic drinks in the United States.11
Globalization affects small companies as well as large. Many small companies export their goods. Many domestic firms assemble their products in other countries. And com- panies are under pressure to improve their products in the face of intense competition from foreign manufacturers. Firms today must ask themselves, “How can we be the best in the world?”
For students, it’s not too early to think globally. Participating in the Global Business Institute program at Indiana University, one hundred students from North Africa, South Asia, and the Middle East came to the United States to pitch entrepreneurial business ideas to a panel of experts. The panel consisted of officials from Coca-Cola and the U.S. Department of State. The most recent winner was Team Pakistan, who proposed a business model that reduces waste by reselling used clothing.12
Technological Change The Internet of Things, artificial intelligence, mobile applications, Big Data analytics, and cloud computing are only some of the ways that technology is vitally important in the busi- ness world. Technology both complicates things and creates new opportunities. The chal- lenges come from the rapid rate at which communication, transportation, information, and other technologies change.13 For example, after just a couple of decades of widespread desk- top use, customers switched to laptop models, which require different accessories. Then, users turned to mini-laptops, tablets, smartphones, and smartwatches to meet their mobility technology needs.14 Any company that served desktop users had to rethink its customers’ wants and needs.
Later chapters discuss technology further, but here we highlight the rise of the Internet and its effects. How is the Internet so critical to business?15 It is a digital marketplace, a means for manufacturing goods and services, a distribution channel, an information service, an arena for social activism,16 and more. It drives down costs and speeds up globalization. It improves efficiency of decision making. Managers can watch and learn what companies around the world are doing in real time.
Although these advantages create business opportunities, they also create threats, not just from hackers but from competitors as they capitalize sooner on new developments than you do.
Things continue to change at breakneck speed. About 15 years ago, tech guru Tim O’Reilly coined the term “Web 2.0” to describe the exciting new wave of social networking start-ups that allow users to publish and share information. But most failed or stalled; very few, other than Facebook, made a profit.17 Web 2.0 redefined the ways in which customers and sellers, employees and employers shared knowledge.
Next came Web 3.0, described as a “read-write-execute” web where applications, search findings, and online services are more tailored, integrated, and relevant to users.18 Think about the last time you searched for a product on Amazon and a list of related products appeared on the screen as alternatives. Web 3.0 is giving way to the Internet of Things, where smartphones, home thermostats, weight scales, wearable fitness trackers, and so forth sense human activities and communicate this information wirelessly through networks to be used in myriad ways (regulate home temperature, check body weight, and tally miles walked).19
Globalization has changed the face of the workforce. Managers in this competitive environment needs to attract and effectively manage a talent pool from all over the globe.
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