Contemporary theories of motivation



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MANAGEMENT Stephen P. Robbins

San Diego State University

Mary Coulter Missouri State University

With contributions by

Joseph J. Martocchio University of Illinois

Lori K. Long Baldwin Wallace University



Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

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© Pearson Education Limited 2018

The rights of Stephen P. Robbins and Mary A. Coulter to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

Authorized adaptation from the United States edition, entitled Management, 14th Edition, ISBN 978-0-13-452760-4 by Stephen P. Robbins and Mary Coulter, published by Pearson Education © 2018.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.

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ISBN 10: 1-292-21583-6 ISBN 13: 978-1-292-21583-9

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To my wife, Laura Steve

To my husband, Ron Mary

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STEPHEN P. ROBBINS received his Ph.D. from the University of Arizona. He previously worked for the Shell Oil Company and Reynolds Metals Company and has taught at the University of Nebraska at Omaha, Concordia University in Montreal, the University of Baltimore, Southern Illinois University at Edwardsville, and San Diego State University. He is currently professor emeritus in management at San Diego State.

Dr. Robbins’s research interests have focused on conflict, power, and politics in organizations, behavioral decision making, and the development of effective interpersonal skills. His articles on these and other topics have appeared in such journals as Business Horizons, the California Management Review, Business and Economic Perspectives, International Management, Management Review, Canadian Personnel and Industrial Relations, and The Journal of Management Education.

Dr. Robbins is the world’s best-selling textbook author in the areas of management and organizational behavior. His books have sold more than 7 million copies and have been translated into 20 languages. His books are currently used at more than 1,500 U.S. colleges and universities, as well as hundreds of schools throughout Canada, Latin America, Australia, New Zealand, Asia, Europe, and the Arab World.

Dr. Robbins also participates in masters track competition. Since turning 50 in 1993, he’s won 23 national championships and 14 world titles. He was inducted into the U.S. Masters Track & Field Hall of Fame in 2005.

MARY COULTER received her Ph.D. from the University of Arkansas. She held different jobs including high school teacher, legal assistant, and city government program planner before completing her graduate work. She has taught at Drury University, the University of Arkansas, Trinity University, and Missouri State University. She is currently professor emeritus of management at Missouri State University. In addition to Management, Dr. Coulter has published other books with Pearson including Fundamentals of Management (with Stephen P. Robbins), Strategic Management in Action, and Entrepreneurship in Action.

When she’s not busy writing, Dr. Coulter enjoys puttering around in her flower gardens, trying new recipes, reading all different types of books, and enjoying many different activities with husband Ron, daughters and sons-in-law Sarah and James, and Katie and Matt, and most especially with her two grandkids, Brooklynn and Blake, who are the delights of her life!

About the Authors

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Preface 29 Acknowledgments 37

Brief Contents

Part 1 Introduction to Management

Chapter 1: Managers and You in the Workplace 38

Management History Module 66 Chapter 2: Decision Making 80

Part 1 Management Practice 110

Chapter 3: Global Management 114

Chapter 4: Valuing a Diverse Workforce 144

Chapter 5: Socially-Conscious

Management 178

Chapter 6: Managing Change 212

Chapter 7: Constraints on Managers 252

Part 2 Management Practice 282

Part 2 Basics of Managing in Today’s Workplace

Part 3 Planning

Chapter 8: Planning and Goal-Setting 288

Chapter 9: Strategic Planning 312

Chapter 10: Fostering Entrepreneurship 342

Part 3 Management Practice 378

Part 4 Organizing

Chapter 11: Organization Design 382

Chapter 12: Organizing Around Teams 414

Chapter 13: Human Resource Management 444

Part 4 Management Practice 482

Part 5 Leading

Chapter 14: Interpersonal and

Organizational Communication 486

Chapter 15: Organizational Behavior 518

Chapter 16: Leadership 554

Chapter 17: Motivation 588

Part 5 Management Practice 624

Part 6 Controlling

Chapter 18: Controlling Activities

and Operations 630

Planning and Control Techniques Module 664 Managing Operations Module 682 Part 6 Management Practice 698

Glossary 703 • Name Index 715 • Organization Index 735 • Subject Index 741

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Preface 29

Acknowledgments 37

Part 1 Introduction to Management 38

Chapter 1: Managers and You in the Workplace 38 Who Are Managers and Where Do They Work? 40

Who Is a Manager? 40 Where Do Managers Work? 41

Why Are Managers Important? 43 What Do Managers Do? 44

Management Functions 45 Mintzberg’s Managerial Roles and a Contemporary Model of Managing 46 Management Skills 47

How Is the Manager’s Job Changing? 49 Focus on the Customer 49 Focus on Technology 51 Focus on Social Media 51 Focus on Innovation 52 Focus on Sustainability 52 Focus on the Employee 53

Why Study Management? 53 The Universality of Management 53 The Reality of Work 54 Rewards and Challenges of Being a Manager 54 Gaining Insights into Life at Work 55

Boxed Features It’s Your Career: The ABC’s of Managing Your Time 38 FYI 42 Future Vision: Is It Still Managing When What You’re Managing Are Robots? 42 Let’s Get REAL 46, 49 Leader Making a Difference: Ursula Burns 52 Workplace Confidential: Dealing with Organizational Politics 56

Preparing for: Exams/Quizzes 57 Chapter Summary by Learning Objectives 57 Review and Discussion Questions 58

Preparing for: My Career 59 Personal Inventory Assessments: Time Management Assessment 59 Ethics Dilemma 59 Skill Exercise: Developing Your Political Skill 59



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12 Contents

Working Together: Team Exercise 60 My Turn to Be a Manager 60

Case Application 1: The Power of Social Media 60 Case Application 2: Who Needs a Boss? 61

Management History Module 66 Early Management 66 Classical Approach 68

Scientific Management 68 General Administrative Theory 69

Behavioral Approach 71 Quantitative Approach 73 Contemporary Approaches 75

Chapter 2: Decision Making 80 The Decision-Making Process 81

Step 1: Identify a Problem 82 Step 2: Identify Decision Criteria 83 Step 3: Allocate Weights to the Criteria 84 Step 4: Develop Alternatives 84 Step 5: Analyze Alternatives 84 Step 6: Select an Alternative 85 Step 7: Implement the Alternative 85 Step 8: Evaluate Decision Effectiveness 85

Approaches to Decision Making 86 Rationality 86 Bounded Rationality 87 Intuition 87 Evidence-Based Management 88

Types of Decisions and Decision-Making Conditions 89 Types of Decisions 89 Decision-Making Conditions 91

Decision-Making Biases and Errors 94 Overview of Managerial Decision Making 96

Effective Decision Making in Today’s World 98 Guidelines for Effective Decision Making 98 Design Thinking and Decision Making 99 Big Data and Decision Making 100

Boxed Features It’s Your Career: Problem Solving—Not A Problem 80 FYI 86, 89, 96, 99 Let’s Get REAL 89 Future Vision: Crowdsourcing Decisions 92 Leader Making a Difference: Elon Musk 94 Workplace Confidential: Making Good Decisions 97

Preparing for: Exams/Quizzes 101 Chapter Summary by Learning Objectives 101 Review and Discussion Questions 102

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Contents 13

Preparing for: My Career 103 Personal Inventory Assessments: Solving Problems Analytically and Creatively 103 Ethics Dilemma 103 Skills Exercise: Developing Your Creativity Skill 103 Working Together: Team Exercise 104 My Turn to Be a Manager 104

Case Application 1: On The Cards: Decision Making 105 Case Application 2: Manchester City: Football Big Data Champions 105

Part 1: Management Practice 110 A Manager’s Dilemma 110 Global Sense 110 Continuing Case: Starbucks—Introduction 110

Part 2 Basics of Managing in Today’s Workplace 114

Chapter 3: Global Management 114 Who Owns What? 116

What’s Your Global Perspective? 117 Understanding the Global Trade Environment 118

Regional Trading Alliances 118 Global Trade Mechanisms 122

Doing Business Globally 124 Different Types of International Organizations 124 How Organizations Go International 125

Managing in a Global Environment 126 The Political/Legal Environment 127 The Economic Environment 127 The Cultural Environment 129 Global Management in Today’s World 132 Challenges of Managing a Global Workforce 133

Boxed Features It’s Your Career: Developing Your Global Perspective—Working with People from Other Cultures 114 FYI 117, 118, 124 Leader Making a Difference: Lucy Peng 123 Future Vision: Communicating in a Connected World 128 Let’s Get REAL 133

Preparing for: Exams/Quizzes 134 Chapter Summary by Learning Objectives 134 Review and Discussion Questions 136

Preparing for: My Career 136 Personal Inventory Assessments: Intercultural Sensitivity Scale 136 Ethics Dilemma 136 Skills Exercise: Developing Your Collaboration Skill 137 Working Together: Team Exercise 137 My Turn to Be a Manager 137

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14 Contents

Case Application 1: Dirty Little Secret 138 Case Application 2: The Power of Presence 139

Answers to “Who Owns What” Quiz 140

Chapter 4: Valuing a Diverse Workforce 144 Diversity 101 146

What Is Workplace Diversity? 146 Why Is Managing Workforce Diversity So Important? 147

The Changing Workplace 150 Characteristics of the U.S. Population 150 Global Population Trends and the Changing Global Workforce 152

Types of Workplace Diversity 153 Age 153 Gender 155 Race and Ethnicity 157 Disability/Abilities 158 Religion 160 LGBT: Sexual Orientation and Gender Identity 161 Other Types of Diversity 161

Challenges in Managing Diversity 162 Personal Bias 162 Glass Ceiling 163

Workplace Diversity Initiatives 165 The Legal Aspect of Workplace Diversity 165 Top Management Commitment to Diversity 165 Mentoring 166 Diversity Skills Training 167 Employee Resource Groups 167

Boxed Features It’s Your Career: Find a Great Sponsor/Mentor—Be a Great Protégé 144 FYI 148, 150, 156, 164, 165 Let’s Get REAL 149, 158 Workplace Confidential: Dealing with Diversity 151 Future Vision: Diversity of Thought 162 Leader Making a Difference: Dr. Rohini Anand 163

Preparing for: Exam/Quizzes 168 Chapter Summary by Learning Objectives 168 Review and Discussion Questions 169

Preparing for: My Career 170 Personal Inventory Assessments: Multicultural Awareness Scale 170 Ethics Dilemma 170 Skills Exercise: Developing Your Valuing Diversity Skill 170 Working Together: Team Exercise 171 My Turn to Be a Manager 171

Case Application 1: An Ethical Hotel where Disabled People Can Find Their Way 172 Case Application 2: Women in Management at Deutsche Telekom 173

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Contents 15

Chapter 5: Socially-Conscious Management 178 What Is Social Responsibility? 180

From Obligations to Responsiveness to Responsibility 180 Should Organizations Be Socially Involved? 181

Green Management and Sustainability 183 How Organizations Go Green 183 Evaluating Green Management Actions 184

Managers and Ethical Behavior 186 Factors That Determine Ethical and Unethical Behavior 186 Ethics in an International Context 189

Encouraging Ethical Behavior 191 Employee Selection 192 Codes of Ethics and Decision Rules 193 Leadership at the Top 195 Job Goals and Performance Appraisal 195 Ethics Training 196 Independent Social Audits 196

Social Responsibility and Ethics Issues in Today’s World 197 Managing Ethical Lapses and Social Irresponsibility 197 Social Entrepreneurship 199 Businesses Promoting Positive Social Change 199

Boxed Features It’s Your Career: How to Be Ethical When No One Else Seems to Be 178 FYI 183, 187, 192, 196, 200 Leader Making a Difference: Yvon Chouinard 184 Let’s Get REAL 185, 191 Future Vision: Building an Ethical Culture That Lasts 193 Workplace Confidential: Balancing Work and Personal Life 201

Preparing for: Exams/Quizzes 202 Chapter Summary by Learning Objective 202 Review and Discussion Questions 203

Preparing for: My Career 204 Personal Inventory Assessments: Ethical Leadership Assessment 204 Ethics Dilemma 204 Skills Exercise: Developing Your Building Trust Skill 204 Working Together: Team Exercise 205 My Turn to Be a Manager 205

Case Application 1: A Novel Wellness Culture 205 Case Application 2: Defeating the System: Ethics at Volkswagen 206

Chapter 6: Managing Change 212 The Case for Change 214

External Factors 215 Internal Factors 215

The Change Process 216 Calm Waters Versus White-Water Rapids Metaphors 217 Reactive Versus Proactive Change Processes 218

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16 Contents

Areas of Change 219 Strategy 220 Structure 220 Technology 220 People 221

Managing Change 222 Why Do People Resist Change? 222 Techniques for Reducing Resistance to Change 223

Contemporary Issues in Managing Change 225 Leading Change 225 Creating a Culture for Change 226 Employee Stress 227

Stimulating Innovation 232 Creativity Versus Innovation 232 Stimulating and Nurturing Innovation 232 Innovation and Design Thinking 236

Disruptive Innovation 237 Definition 237 Why Disruptive Innovation Is Important 238 Who’s Vulnerable? 238 Implications 239

Boxed Features It’s Your Career: Learning to Manage Your Stress 212 FYI 215, 225, 228, 232, 234 Let’s Get REAL 223, 235 Leader Making a Difference: Satya Nadella 227 Workplace Confidential: Coping with Job Stress 231 Future Vision: The Internet of Things 233

Preparing for: Exams/Quizzes 241 Chapter Summary by Learning Objectives 241 Review and Discussion Questions 242

Preparing for: My Career 243 Personal Inventory Assessments: Are You a Type A Personality? 243 Ethics Dilemma 243 Skills Exercise: Developing Your Change Management Skill 243 Working Together: Team Exercise 244 My Turn to Be a Manager 244

Case Application 1: A. S. Watson Group 245 Case Application 2: The iPhone: A Technology Disruptor 246

Chapter 7: Constraints on Managers 252 The Manager: Omnipotent or Symbolic? 254

The Omnipotent View 254 The Symbolic View 254

The External Environment: Constraints and Challenges 255 The Economic Environment 256 The Demographic Environment 256 How the External Environment Affects Managers 258

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Contents 17

Organizational Culture: Constraints and Challenges 261 What Is Organizational Culture? 261 Strong Cultures 264 Where Culture Comes From and How It Continues 265 How Employees Learn Culture 266 How Culture Affects Managers 268

Current Issues in Organizational Culture 271 Creating an Innovative Culture 271 Creating a Customer-Responsive Culture 271 Creating a Sustainability Culture 272

Boxed Features It’s Your Career: Reading an Organization’s Culture: Find One Where You’ll Be Happy 252 Future Vision: Tomorrow’s Workplace: Sustainability and You 257 Let’s Get REAL 258, 266 Leader Making a Difference: Indra Nooyi 260 FYI 261 Workplace Confidential: Adjusting to a New Job or Work Team 269

Preparing for: Exams/Quizzes 273 Chapter Summary by Learning Objectives 273 Review and Discussion Questions 274

Preparing for: My Career 274 Personal Inventory Assessments: What’s My Comfort with Change? 274 Ethics Dilemma 274 Skills Exercise: Developing Your Environmental Scanning Skill 275 Working Together: Team Exercise 275 My Turn to Be a Manager 275

Case Application 1: Tesco: Time to Refocus 276 Case Application 2: The Sky is the Limit 277

Part 2: Management Practice 282 A Manager’s Dilemma 282 Global Sense 282 Continuing Case: Starbucks—Basics of Managing in Today’s Workplace 282

Part 3 Planning 288

Chapter 8: Planning and Goal-Setting 288 The What and Why of Planning 290

What Is Planning? 290 Why Do Managers Plan? 290 Planning and Performance 290

Goals and Plans 291 Types of Goals 291 Types of Plans 292

Setting Goals and Developing Plans 294 Approaches to Setting Goals 294

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18 Contents

Developing Plans 298 Approaches to Planning 299

Contemporary Issues in Planning 300 How Can Managers Plan Effectively in Dynamic Environments? 300 How Can Managers Use Environmental Scanning? 301 Digital Tools 302

Boxed Features It’s Your Career: You Gotta Have Goals 288 FYI 291, 298, 300 Let’s Get REAL 292, 297 Leader Making a Difference: Jeff Bezos 294 Workplace Confidential: When You Face a Lack of Clear Directions 295 Future Vision: Using Social Media for Environmental Scanning 303

Preparing for: Exams/Quizzes 304 Chapter Summary by Learning Objectives 304 Review and Discussion Questions 305

Preparing for: My Career 306 Personal Inventory Assessments: Tolerance of Ambiguity Scale 306 Ethics Dilemma 306 Skills Exercise: Making a To-Do List that Works and Using It 306 Working Together: Team Exercise 307 My Turn to Be a Manager 307

Case Application 1: Hermès: Delivering Change 308 Case Application 2: Shifting Direction 309

Chapter 9: Strategic Planning 312 Strategic Management 314

What Is Strategic Management? 314 Why Is Strategic Management Important? 314

The Strategic Management Process 316 Step 1: Identifying the Organization’s Current Mission, Goals, and Strategies 316 Step 2: Doing an External Analysis 317 Step 3: Doing an Internal Analysis 317 Step 4: Formulating Strategies 319 Step 5: Implementing Strategies 319 Step 6: Evaluating Results 319

Corporate Strategies 319 What Is Corporate Strategy? 321 What Are the Types of Corporate Strategy? 321 How Are Corporate Strategies Managed? 322

Competitive Strategies 323 The Role of Competitive Advantage 323 Choosing a Competitive Strategy 326

Current Strategic Management Issues 327 The Need for Strategic Leadership 327 The Need for Strategic Flexibility 329 Important Organizational Strategies for Today’s Environment 330

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Contents 19

Boxed Features It’s Your Career: Learning Your Strengths and Weaknesses: Accentuate the Positive 312 FYI 317, 325, 329 Let’s Get REAL 318, 328 Workplace Confidential: Developing a Career Strategy 320 Leader Making a Difference: Mary Barra 321 Future Vision: Big Data as a Strategic Weapon 324

Preparing for: Exams/Quizzes 332 Chapter Summary by Learning Objectives 332 Review and Discussion Questions 333

Preparing for: My Career 334 Personal Inventory Assessments: Creative Style Indicator 334 Ethics Dilemma 334 Skills Exercise: Developing Your Business Planning Skill 334 Working Together: Team Exercise 336 My Turn to Be a Manager 336

Case Application 1: Fast Fashion 336 Case Application 2: A Simple Strategy at Costco 337

Chapter 10: Fostering Entrepreneurship 342 The Context of Entrepreneurship 343

What Is Entrepreneurship? 343 Entrepreneurship Versus Self-Employment 344 Why Is Entrepreneurship Important? 344 The Entrepreneurial Process 345 What Do Entrepreneurs Do? 345 Social Responsibility and Ethical Issues Facing Entrepreneurs 346

Start-Up and Planning Issues 348 Identifying Environmental Opportunities and Competitive Advantage 349 Researching the Venture’s Feasibility—Ideas 351 Researching the Venture’s Feasibility—Competitors 354 Researching the Venture’s Feasibility—Financing 354 Developing a Business Plan 355 The Sharing Economy 356

Organizing Issues 357 Legal Forms of Organization 357 Organizational Design and Structure 359 Human Resource Management 360 Initiating Change 361 The Importance of Continuing Innovation 362

Leading Issues 362 Personality Characteristics of Entrepreneurs 362 Motivating Employees Through Empowerment 363 The Entrepreneur as Leader 364

Control Issues 365 Managing Growth 365 Managing Downturns 367 Exiting the Venture 368

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20 Contents

Boxed Features It’s Your Career: Being Entrepreneurial Even If You Don’t Want to Be an Entrepreneur 342 FYI 346, 349, 351 Workplace Confidential: Dealing with Risks 347 Future Vision: The Growth of Social Businesses 348 Let’s Get REAL 352, 356 Leader Making a Difference: Mark Zuckerberg 364

Preparing for: Exams/Quizzes 369 Chapter Summary by Learning Objectives 369 Review and Discussion Questions 370

Preparing for: My Career 371 Personal Inventory Assessments: Innovative Attitude Scale 371 Ethics Dilemma 371 Skills Exercise: Developing Grit 371 Working Together: Team Exercise 372 My Turn to Be a Manager 372

Case Application 1: The Fear of Failure 373 Case Application 2: The Right Recipe for Entrepreneurs: Fifteen 374

Part 3: Management Practice 378 A Manager’s Dilemma 378 Global Sense 378 Continuing Case: Starbucks—Planning 378

Part 4 Organizing 382

Chapter 11: Organization Design 382 Six Elements of Organizational Design 383

Work Specialization 384 Departmentalization 385 Chain of Command 387 Span of Control 390 Centralization and Decentralization 391 Formalization 392

Mechanistic and Organic Structures 392 Contingency Factors Affecting Structural Choice 393

Strategy and Structure 393 Size and Structure 394 Technology and Structure 394 Environmental Uncertainty and Structure 394

Traditional Organizational Design Options 395 Simple Structure 395 Functional Structure 395 Divisional Structure 395

Organizing for Flexibility in the Twenty-First Century 396 Team Structures 396 Matrix and Project Structures 397

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Contents 21

The Boundaryless Organization 398 Telecommuting 400 Compressed Workweeks, Flextime, and Job Sharing 402 The Contingent Workforce 402

Boxed Features It’s Your Career: Staying Connected 382 Let’s Get REAL 388, 401 Workplace Confidential: Coping with Multiple Bosses 389 FYI 390, 391, 398, 401, 402 Leader Making a Difference: Zhang Ruimin 393 Future Vision: Flexible Organizations 399

Preparing for: Exams/Quizzes 404 Chapter Summary by Learning Objectives 404 Review and Discussion Questions 405

Preparing for: My Career 406 Personal Inventory Assessments: Organizational Structure Assessment 406 Ethics Dilemma 406 Skills Exercise: Developing Your Acquiring Power Skill 406 Working Together: Team Exercise 407 My Turn to Be a Manager 407

Case Application 1: A New Kind of Structure 408 Case Application 2: Organizational Volunteers 409

Chapter 12: Organizing Around Teams 414 Groups and Group Development 416

What Is a Group? 416 Stages of Group Development 416

Work Group Performance and Satisfaction 418 External Conditions Imposed on the Group 418 Group Member Resources 418 Group Structure 418 Group Processes 422 Group Tasks 425

Turning Groups into Effective Teams 426 The Difference Between Groups and Teams 426 Types of Work Teams 427 Creating Effective Work Teams 428

Contemporary Challenges in Managing Teams 432 Managing Global Teams 432 Building Team Skills 433 Understanding Social Networks 434

Boxed Features It’s Your Career: Developing Your Coaching Skills 414 FYI 422, 426, 428, 429 Let’s Get REAL 425, 430 Future Vision: Conflict 2.0 425 Workplace Confidential: Handling Difficult Coworkers 431 Leader Making a Difference: Dr. Dara Richardson-Heron 433

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22 Contents

Preparing for: Exams/Quizzes 435 Chapter Summary by Learning Objectives 435 Review and Discussion Questions 436

Preparing for: My Career 437 Personal Inventory Assessments: Diagnosing the Need for Team Building 437 Ethics Dilemma 437 Skills Exercise: Developing Your Coaching Skills 437 Working Together: Team Exercise 438 My Turn to Be a Manager 438

Case Application 1: Who Needs a Manager? 438 Case Application 2: 737 Teaming Up for Takeoff 439

Chapter 13: Human Resource Management 444 Why Human Resource Management Is Important and the Human Resource Management Process 446 External Factors that Affect the Human Resource Management Process 448

The Economy 448 Labor Unions 448 Laws and Rulings 449 Demography 451

Identifying and Selecting Competent Employees 452 Human Resource Planning 453 Recruitment and Decruitment 454 Selection 456

Providing Employees with Needed Skills and Knowledge 459 Orientation 460 Employee Training 460

Retaining Competent, High-Performing Employees 462 Employee Performance Management 462 Compensation and Benefits 463

Contemporary Issues in Managing Human Resources 466 Managing Downsizing 466 Managing Sexual Harassment 467 Controlling HR Costs 467

Boxed Features It’s Your Career: Negotiating Your Salary 444 Leader Making a Difference: Laszlo Bock 451 Workplace Confidential: Job Search 455 FYI 456, 461, 467 Let’s Get REAL 459, 464 Future Vision: Gamification of HR 468

Preparing for: Exams/Quizzes 469 Chapter Summary by Learning Objectives 469 Review and Discussion Questions 471

Preparing for: My Career 471 Personal Inventory Assessments: Work Performance Assessment 471 Ethics Dilemma 472 Skills Exercise: Developing Your Interviewing Skills 472 Working Together: Team Exercise 473 My Turn to Be a Manager 473

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Contents 23

Case Application 1: Maersk and HR Management Challenges in China 474 Case Application 2: Measuring Output, Not Hours Worked 475

Part 4: Management Practice 482 A Manager’s Dilemma 482 Global Sense 482 Continuing Case: Starbucks—Organizing 482

Part 5 Leading 486

Chapter 14: Interpersonal and Organizational Communication 486 The Nature and Function of Communication 487

What Is Communication? 488 Functions of Communication 488

Methods and Challenges of Interpersonal Communication 489 Methods 489 Barriers 492 Overcoming the Barriers 494

Effective Organizational Communication 497 Formal Versus Informal 497 Direction of Flow 497 Networks 498 Workplace Design and Communication 500

Communication in the Internet and Social Media Age 501 The 24/7 Work Environment 502 Working from Anywhere 502 Social Media 502 Balancing the Pluses and Minuses 503 Choosing the Right Media 503

Communication Issues in Today’s Organizations 504 Managing Communication in a Digitally Connected World 504 Managing the Organization’s Knowledge Resources 505 The Role of Communication in Customer Service 505 Getting Employee Input 506 Communicating Ethically 507

Becoming a Better Communicator 508 Sharpening Your Persuasion Skills 508 Sharpening Your Speaking Skills 508 Sharpening Your Writing Skills 508 Sharpening Your Reading Skills 509

Boxed Features It’s Your Career: I’m Listening! 486 Leader Making a Difference: Angela Ahrendts 492 FYI 494, 497, 500 Let’s Get REAL 495, 499 Workplace Confidential: An Uncommunicative Boss 496 Future Vision: No Longer Lost in Translation 503

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24 Contents

Preparing for: Exams/Quizzes 509 Chapter Summary by Learning Objectives 509 Review and Discussion Questions 511

Preparing for: My Career 511 Personal Inventory Assessments: Communication Styles 511 Ethics Dilemma 511 Skills Exercise: Developing Your Presentation Skills 512 Working Together: Team Exercise 512 My Turn to Be a Manager 512

Case Application 1: Is Anytime Feedback Too Much? 513 Case Application 2: Neutralizing the Concordia Effect! 514

Chapter 15: Organizational Behavior 518 Focus and Goals of Organizational Behavior 520

Focus of Organizational Behavior 520 Goals of Organizational Behavior 521

Attitudes and Job Performance 521 Job Satisfaction 522 Job Involvement and Organizational Commitment 524 Employee Engagement 524 Attitudes and Consistency 525 Cognitive Dissonance Theory 525 Attitude Surveys 526 Implications for Managers 527

Personality 527 MBTI® 528 The Big Five Model 530 Additional Personality Insights 530 Personality Types in Different Cultures 532 Emotions and Emotional Intelligence 533 Implications for Managers 536

Perception 537 Factors That Influence Perception 537 Attribution Theory 538 Shortcuts Used in Judging Others 539 Implications for Managers 540

Learning 540 Operant Conditioning 540 Social Learning 541 Shaping: A Managerial Tool 541 Implications for Managers 542

Boxed Features It’s Your Career: Self Awareness: You Need to Know Yourself Before You Can Know Others 518 FYI 522, 525, 538 Leader Making a Difference: Carolyn McCall 527 Let’s Get REAL 529, 533 Workplace Confidential: An Abusive Boss 534 Future Vision: Increased Reliance on Emotional Intelligence 535

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Contents 25

Preparing for: Exams/Quizzes 542 Chapter Summary by Learning Objectives 542 Review and Discussion Questions 544

Preparing for: My Career 544 Personal Inventory Assessments: Emotional Intelligence Assessment 544 Ethics Dilemma 544 Skills Exercise: Developing Your Shaping Behavior Skill 545 Working Together: Team Exercise 545 My Turn to Be a Manager 545

Case Application 1: A Great Place to Work 546 Case Application 2: Employees First 547

Chapter 16: Leadership 554 Who Are Leaders and What Is Leadership? 555 Early Leadership Theories 556

Leadership Traits 556 Leadership Behaviors 556

Contingency Theories of Leadership 559 The Fiedler Model 559 Hersey and Blanchard’s Situational Leadership Theory 561 Path-Goal Model 562

Contemporary Views of Leadership 564 Leader–Member Exchange (LMX) Theory 564 Transformational-Transactional Leadership 564 Charismatic-Visionary Leadership 565 Authentic Leadership 566 Ethical Leadership 567 Team Leadership 567

Leadership Issues in the Twenty-First Century 569 Managing Power 569 Developing Trust 571 Empowering Employees 572 Leading Across Cultures 573 Becoming an Effective Leader 574

Boxed Features It’s Your Career: Being a More Charismatic Leader 554 FYI 556, 562, 564, 566, 571, 575 Leader Making a Difference: Dr. Delos “Toby” Cosgrove 565 Let’s Get REAL 568, 571 Workplace Confidential: A Micromanaging Boss 570 Future Vision: Flexible Leadership 574

Preparing for: Exams/Quizzes 576 Chapter Summary by Learning Objectives 576 Review and Discussion Questions 577

Preparing for: My Career 578 Personal Inventory Assessments: Leadership Style Inventory 578 Ethics Dilemma 578 Skills Exercise: Developing Your Choosing an Effective Leadership Style Skill 578

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26 Contents

Working Together: Team Exercise 579 My Turn to Be a Manager 579

Case Application 1: Indra Nooyi: An Inspiring Leader 580 Case Application 2: Leadership Development at L’Oréal 581

Chapter 17: Motivation 588 What Is Motivation? 589 Early Theories of Motivation 590

Maslow’s Hierarchy of Needs Theory 590 McGregor’s Theory X and Theory Y 591 Herzberg’s Two-Factor Theory 592 Three-Needs Theory 593

Contemporary Theories of Motivation 594 Goal-Setting Theory 594 Reinforcement Theory 596 Designing Motivating Jobs 596 Equity Theory 599 Expectancy Theory 602 Integrating Contemporary Theories of Motivation 603

Current Issues in Motivation 605 Managing Cross-Cultural Motivational Challenges 605 Motivating Unique Groups of Workers 606 Designing Appropriate Rewards Programs 609

Boxed Features It’s Your Career: What Motivates You? 588 FYI 592, 596, 600, 610 Leader Making a Difference: Susan Wojcicki 595 Workplace Confidential: Feelings of Unfair Pay 601 Let’s Get REAL 604, 611 Future Vision: Individualized Rewards 607

Preparing for: Exams/Quizzes 612 Chapter Summary by Learning Objectives 612 Review and Discussion Questions 613

Preparing for: My Career 614 Personal Inventory Assessments: Work Motivation Indicator 614 Ethics Dilemma 614 Skills Exercise: Developing Your Motivating Employees Skill 614 Working Together: Team Exercise 615 My Turn to Be a Manager 615

Case Application 1: Hong Kong Disneyland: HR Programs to Motivate Employees 616 Case Application 2: Balancing Success and Happiness 617

Part 5: Management Practice 624 A Manager’s Dilemma 624 Global Sense 625 Continuing Case: Starbucks—Leading 626

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Contents 27

Part 6 Controlling 630

Chapter 18: Controlling Activities and Operations 630 What Is Controlling and Why Is It Important? 632 The Control Process 633

Step 1: Measuring Actual Performance 634 Step 2: Comparing Actual Performance Against the Standard 635 Step 3: Taking Managerial Action 636 Managerial Decisions in Controlling 636

Controlling for Organizational and Employee Performance 637 What Is Organizational Performance? 637 Measures of Organizational Performance 638 Controlling for Employee Performance 639

Tools for Measuring Organizational Performance 642 Feedforward/Concurrent/Feedback Controls 642 Financial Controls 643 Information Controls 645 Balanced Scorecard 646 Benchmarking of Best Practices 646

Contemporary Issues in Control 647 Adjusting Controls for Cross-Cultural Differences and Global Turmoil 648 Workplace Privacy 649 Employee Theft 650 Workplace Violence 651 Controlling Customer Interactions 652 Corporate Governance 654

Boxed Features It’s Your Career: How to Be a Pro at Giving Feedback 630 FYI 639, 651, 654 Let’s Get REAL 640, 644 Workplace Confidential: Responding to an Unfair Performance Review 641 Leader Making a Difference: Bob Iger 647 Future Vision: Real-time Feedback 650

Preparing for: Exams/Quizzes 655 Chapter Summary by Learning Objectives 655 Review and Discussion Questions 656

Preparing for: My Career 657 Personal Inventory Assessments: Workplace Discipline Indicator 657 Ethics Dilemma 657 Skills Exercise: Managing Challenging Employees 657 Working Together: Team Exercise 658 My Turn to Be a Manager 658

Case Application 1: The Challenge of “Healthy” Fast-Food 658 Case Application 2: Bring Your Own Device 659

Planning and Control Techniques Module 664 Techniques for Assessing the Environment 664

Environmental Scanning 664

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28 Contents

Forecasting 666 Benchmarking 668

Techniques for Allocating Resources 669 Budgeting 669 Scheduling 671 Breakeven Analysis 674 Linear Programming 674

Contemporary Planning and Control Techniques 676 Project Management 676 Scenario Planning 678

Managing Operations Module 682 The Role of Operations Management 683

Services and Manufacturing 683 Managing Productivity 684 Strategic Role of Operations Management 685

What Is Value Chain Management and Why Is It Important? 685 What Is Value Chain Management? 686

Goal of Value Chain Management 686 Benefits of Value Chain Management 687

Managing Operations Using Value Chain Management 687 Value Chain Strategy 687 Obstacles to Value Chain Management 690

Current Issues in Managing Operations 691 Technology’s Role in Operations Management 692 Quality Initiatives 692 Quality Goals 694 Mass Customization and Lean Organization 695

Part 6: Management Practice 698 A Manager’s Dilemma 698 Global Sense 698 Continuing Case: Starbucks—Controlling 699

Glossary 703

Name Index 715

Organization Index 735

Subject Index 741

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The book you have before you is one of the world’s most popular introductory management textbooks. It’s used by several hundred U.S. colleges and universities; it’s translated into Spanish, French, Russian, Dutch, Bahasa, Korean, and Chinese; and there are adapted edi- tions for Australia, Canada, India, and the Arab World.

For a textbook first published in 1984—in a crowded market where there are currently several dozen choices, why has Robbins/Coulter Management been so popular and enduring? We believe there are three characteristics that set us apart: contemporary topic coverage, read- ability, and relevance.

Contemporary Topic Coverage We have always prided ourselves on bringing the latest management issues and research to this book. In preparing each edition, we carefully comb the academic journals and business periodicals to identify topics that students need to be current on. For instance, prior editions of this book were the first to discuss self-managed teams, emotional intelligence, open-book management, sustainability, social entrepreneurship, stretch goals, the contingent workforce, self-managed careers, wearable technology, big data, and design thinking.

This current edition continues the tradition by including a new section on disruptive inno- vation. No topic appears to be more current or important to students today than dealing with major structural changes taking place in industries as varied as automobiles, hotels, banking, TV networks, or book publishing. In fact, there are few industries that aren’t being threat- ened by disruptive innovation. In Chapter 6, we define disruptive innovation; explain why it’s important; describe who is vulnerable; and discuss implications for entrepreneurs, corporate managers, and your career planning.

Key Changes to the 14th Edition • Chapter 6 on managing change has been expanded to include a discussion of disruptive in-

novation as an important driver of change. • The Part 2 module on creating and leading entrepreneurial ventures has become a separate

chapter (Chapter 10). We’ve expanded our discussion, added end-of-chapter applications, and acknowledged the importance of entrepreneurship by giving it its own chapter.

• The two chapters on organizational design have been merged into one chapter (Chapter 11) in response to comments by users and reviewers. But we’ve retained the key concepts that students need to know.

• The addition of “Workplace Confidential” pages throughout the book which address com- mon frustrations and challenges that employees face in the workplace.

• Current and timely topics—including the Internet of things, real-time feedback, and choos- ing appropriate communication media, among others—have been added.

• Dozens of current examples illustrating management practices and challenges in start-up and established organizations, small and large organizations, and manufacturing, service and technology organizations have been added.

Readability Every author claims his or her books are highly readable. The reality is that few actually are. From the first edition of this book, we were determined to make the field of manage- ment interesting and engaging for the reader. How did we do it? First, we committed to a



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30 Preface

conversational writing style. We wanted the book to read like normal people talk. Second, we relied on an extensive use of examples. As your senior author learned early in his teaching career, students don’t remember theories but they do remember stories. So you’ll find a wealth of current examples in this book.

A well-written book should be able to be used successfully at all levels of higher education, from community colleges to graduate programs. And over its 30+ years of life, this book has done just that. You’ll find this book is used in community colleges, at for-profit colleges, by undergraduate students at both regional and land-grant uni- versities, and in numerous graduate programs.

Relevance Students are unlikely to be motivated if they think a course and its textbooks aren’t relevant to their career goals. We’ve responded to this challenge in a number of ways. Our latest inclusion is an important new feature—the Workplace Confidential pages— that’s designed to make this book more meaningful to non-management majors. We also want to highlight four additional features that have helped build this book’s repu- tation for practicality.

Providing value to non-management students. New to this edition are in-chapter pages entitled Workplace Confidential. This unique feature marks a distinct break from what typically has been included in the traditional introductory management text.

Your authors have long heard a common complaint about the introductory manage- ment course from students in majors such as accounting, finance, and marketing. As summed up by one accounting student: “Why do I need to take a management course? I have no interest in pursuing a career in management!” Even though that accounting student might some day lead an audit team or manage an office of a major CPA firm, we understand those non-management majors who question the relevance of this course to their career goals. We’ve listened and responded.

We’ve made the contents of this 14th edition relevant to any student who plans to work in an organization. Regardless of whether an organization employs three people or 300,000, there are common challenges that every employee encounters. We’ve researched those challenges and identified the nearly dozen-and-a-half most frequent. Then we looked at providing students with guidance for dealing with these challenges. The result is the Workplace Confidential features that you’ll find throughout this book. For instance, you’ll find suggestions for dealing with organizational politics, job stress, coping with an uncommunicative or abusive boss, and responding to an unfair performance review.

Insights from real managers. One feature that has differentiated Robbins/Coulter for more than 15 years is our “real” managers. Student feedback tells us that they appreciate learning from real managers in their everyday jobs. In Let’s Get Real boxes, actual managers respond to problem scenarios. In Leader Making a Difference boxes, you’ll meet a variety of global executives whose knowledge and skills significantly influenced organizational outcomes.

Focus on skills. Today’s students need both knowledge (knowing) and skills (doing). Students want to leave class knowing what management is all about but also with the skills necessary to help them succeed in today’s workplaces. In response, you’ll find several features in this book that are designed to build skill expertise. It’s Your Career chapter openers cover skills ranging from managing time and being self aware to being a pro at giving feedback and being change ready. These chapter open- ers include information about the skill and are reinforced with a Pearson MyLab Management component that tests students’ comprehension of the skill. Also, at the end of each chapter, you’ll find more skill exercises, where we provide a thorough discussion of additional skills and give students opportunities to practice these skills.

Looking ahead. Students are going to spend most of their future work life in a setting that’s likely to look very different from today. To help students prepare for that future, we have included Future Vision boxes throughout the book that look at how

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Preface 31

management and organizations might change over the next 15 to 20 years. Although no one has a perfectly accurate view into the future, certain trends in place today offer insights into what tomorrow’s work world might look like. We draw from recent research and forecasts to consider this future.

Pearson MyLab Management Suggested Activities Making assessment activities available online for students to complete before coming to class will allow you, the instructor, more discussion time during the class to review areas that students are having difficulty in comprehending. The activities below are available in Pearson MyLab Management and are integrated into the textbook.

Watch It Recommends a video clip that can be assigned to students for outside classroom viewing or that can be watched in the classroom. The video corresponds to the chapter material and is accompanied by multiple-choice questions that reinforce students’ comprehen- sion of the chapter content.

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