A01_ROBB5839_14_GE_FM.indd 1 26/07/17 10:48 AM
This page intentionally left blank
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
A01_ROBB5839_14_GE_FM.indd 3 26/07/17 10:49 AM
Vice President, Business Publishing: Donna Battista Director of Portfolio Management: Stephanie Wall Portfolio Manager: Kris Ellis-Levy Associate Acquisitions Editor, Global Edition: Ishita Sinha Associate Project Editor, Global Edition: Paromita Banerjee Assistant Editor, Global Edition: Tahnee Wager Editorial Assistant: Hannah Lamarre Vice President, Product Marketing: Roxanne McCarley Director of Strategic Marketing: Brad Parkins Strategic Marketing Manager: Deborah Strickland Product Marketer: Becky Brown Field Marketing Manager: Lenny Ann Kucenski Product Marketing Assistant: Jessica Quazza Vice President, Production and Digital Studio, Arts and Business: Etain O’Dea Director of Production, Business: Jeff Holcomb
Managing Producer, Business: Ashley Santora Senior Manufacturing Controller, Global Edition: Trudy Kimber Content Producer, Global Edition: Purnima Narayanan Content Producer: Claudia Fernandes Operations Specialist: Carol Melville Creative Director: Blair Brown Manager, Learning Tools: Brian Surette Content Developer, Learning Tools: Lindsey Sloan Managing Producer, Digital Studio, Art and Business: Diane Lombardo Digital Studio Producer: Monique Lawrence Digital Studio Producer: Alana Coles Media Production Manager, Global Edition: Vikram Kumar Full-Service Project Management and Composition: Cenveo® Publisher Services Interior Designer: Cenveo® Publisher Services Cover Image: Comaniciu Dan/Shutterstock
Acknowledgments of third-party content appear on the appropriate page within the text.
Pearson Education Limited KAO Two KAO Park Harlow CM17 9NA United Kingdom
and Associated Companies throughout the world
Visit us on the World Wide Web at: www.pearsonglobaleditions.com
© 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.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1-292-21583-6 ISBN 13: 978-1-292-21583-9
British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library
10 9 8 7 6 5 4 3 2 1
Typeset in Times NR MT Pro by Cenveo® Publisher Services Printed and bound by Vivar in Malaysia
A01_ROBB5839_14_GE_FM.indd 4 11/07/17 9:33 AM
To my wife, Laura Steve
To my husband, Ron Mary
A01_ROBB5839_14_GE_FM.indd 5 11/07/17 9:33 AM
This page intentionally left blank
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
A01_ROBB5839_14_GE_FM.indd 7 11/07/17 9:33 AM
This page intentionally left blank
Preface 29 Acknowledgments 37
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
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
A01_ROBB5839_14_GE_FM.indd 9 11/07/17 4:36 PM
This page intentionally left blank
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
A01_ROBB5839_14_GE_FM.indd 11 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 12 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 13 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 14 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 15 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 16 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 17 26/07/17 10:58 AM
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
A01_ROBB5839_14_GE_FM.indd 18 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 19 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 20 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 21 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 22 19/07/17 9:41 AM
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
A01_ROBB5839_14_GE_FM.indd 23 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 24 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 25 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 26 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 27 11/07/17 9:33 AM
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
Name Index 715
Organization Index 735
Subject Index 741
A01_ROBB5839_14_GE_FM.indd 28 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 29 11/07/17 9:33 AM
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
A01_ROBB5839_14_GE_FM.indd 30 11/07/17 9:33 AM
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.
Try It Recommends a mini simulation that can be assigned to students as an outside class- room activity or be done in the classroom. As the students watch the simulation they will be asked to make choices based on the scenario presented in the simulation. At the end of the simulation the student will receive immediate feedback based on the answers they gave. These simulations reinforce the concepts of the chapter and the students’ comprehension of those concepts.
Talk About It These are discussion-type questions that can be assigned as an activity within the classroom.
Write It Students can be assigned these broad-based, critical-thinking discussion questions that will challenge them to assimilate information that they’ve read in the chapter.
Personal Inventory Assessments (PIA) Students learn better when they can connect what they are learning to their personal experience. PIA (Personal Inventory Assessments) is a collection of online exercises de- signed to promote self-reflection and engagement in students, enhancing their ability to connect with concepts taught in principles of management, organizational behavior, and human resource management classes. Assessments are assignable by instructors who can then track students’ completions. Student results include a written explanation along with a graphic display that shows how their results compare to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion.
Assisted Graded Writing Questions These are short essay questions that the students can complete as an assignment and submit to you, the professor, for grading.
Chapter-by-Chapter Changes Chapter 1 • New FYI features • New Workplace Confidential: Dealing with Organizational Politics • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Ethics Dilemma
A01_ROBB5839_14_GE_FM.indd 31 11/07/17 9:33 AM
• New examples • New Working Together and My Turn to Be a Manager activities • New Case Application on the ALS Ice Bucket Challenge Chapter 2 • New Workplace Confidential: Making Good Decisions • New examples • New Future Vision: Crowdsourcing Decisions • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Application on Card Connection’s business model to decide on franchi-
see locations • New Case Application on Manchester City Football Club’s use of big data in game
strategies Chapter 3 • Updated It’s Your Career opener and Pearson MyLab Management component:
Developing Your Global Perspective: Jump-start Your Cultural Intelligence • Updated Future Vision: Communicating in a Connected World • New Leader Making a Difference: Lucy Peng (Alibaba) • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New examples • New Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager activities • New Case Application on expanding internationally at Tableau, a technology company Chapter 4 • New Future Vision: Diversity of Thought • New FYI features • New examples • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: Dealing with Diversity • New Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Application on ethical management at Albergo Etico Chapter 5 • New FYI features • New Workplace Confidential: Balancing Work and Personal Life • New examples • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Application on ethical problems at Volkswagen Chapter 6 • New It’s Your Career opener and Pearson MyLab Management component:
Learning to Manage Your Stress • New Future Vision: The Internet of Things • New FYI features • New Workplace Confidential: Coping with Job Stress
A01_ROBB5839_14_GE_FM.indd 32 19/07/17 9:42 AM
• New Examples • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real’s • New Working Together and My Turn to Be a Manager activities • New Case Application on the iPhone as a technology disruptor Chapter 7 • New Leader Making a Difference: Indra Nooyi (Pepsi) • New FYI features • New Watch It, Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: Adjusting to a New Job or Work Team • New examples • Updated Skills Exercise, new Working Together and My Turn to Be a Manager activities • New Case Application on organizational culture at Tesco • New Case Application on Amazon’s use of drone technology Chapter 8 • New Future Vision: Using Social Media for Environmental Scanning • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Workplace Confidential: When You Face a Lack of Clear Directions • New examples • New Let’s Get Real • New Ethics Dilemma • New Working Together and updated My Turn to Be a Manager activities • New Case Application on shipping challenges at Hermès Chapter 9 • New Leader Making a Difference: Mary Barra (GM) • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Workplace Confidential: Developing a Career Strategy • New examples • New Let’s Get Real • New Ethics Dilemma • New Working Together and My Turn to Be a Manager activities • New Case Application on Costco’s strategy Chapter 10 • New It’s Your Career opener and Pearson MyLab Management component: Being
Entrepreneurial Even If You Don’t Want to Be an Entrepreneur • New Leader Making a Difference: Mark Zuckerberg (Facebook) • New Future Vision: The Growth of Social Businesses • New FYI features • New Watch It, Pearson MyLab Management recommended video assignments • New Let’s Get Real’s • New Workplace Confidential: Dealing with Risks • New examples • New Ethics Dilemma • New Personal Inventory Assessment • New Working Together and My Turn to Be a Manager activities • New Skills Exercise: Developing Grit • New Case Applications on Jamie Oliver’s unique social business at Fifteen Chapter 11 • New FYI features • New Workplace Confidential: Coping with Multiple Bosses
A01_ROBB5839_14_GE_FM.indd 33 19/07/17 9:43 AM
• New examples • New Working Together activity Chapter 12 • New Leader Making a Difference: Dr. Dara Richardson-Heron (YWCA USA) • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: Handling Difficult Coworkers • New examples • Updated Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager activities • New Case Application on self-directed teams at W.L. Gore and Associates Chapter 13 • New It’s Your Career opener and Pearson MyLab Management component:
Negotiating Your Salary • New Future Vision: Gamification of HR • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: Job Search • New examples • Updated statistics • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Application on Maersk and the HR management challenges in China • New Case Application on BAE Systems making use of schedule based working Chapter 14 • New It’s Your Career opener and Pearson MyLab Management component: I’m
Listening • New Future Vision: No Longer Lost in Translation • New Leader Making a Difference: Angela Ahrendts (Apple) • New FYI features • New Workplace Confidential: An Uncommunicative Boss • New examples • New Let’s Get Real • New Skills Exercise: Developing Your Presentation Skills • New Working Together and My Turn to Be a Manager activities • New Case Application on performance feedback at Amazon Chapter 15 • New Leader Making a Difference: Carolyn McCall (easyJet) • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: An Abusive Boss • New examples • New Ethics Dilemma • New Working Together and My Turn to Be a Manager activities • New Case Application on the Tencent Holdings, China Chapter 16 • New Leader Making a Difference: Dr. Delos “Toby” Cosgrove (Cleveland Clinic) • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Workplace Confidential: A Micromanaging Boss
A01_ROBB5839_14_GE_FM.indd 34 19/07/17 9:44 AM
• New examples • New Let’s Get Real • New Working Together and My Turn to Be a Manager activities • New Case Application on PepsiCo’s Indra Nooyi imbibing qualities of an
Chapter 17 • New Leader Making a Difference: Susan Wojcicki (YouTube) • New FYI features • New Workplace Confidential: Feelings of Unfair Pay • New examples • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Application on Hong Kong Disneyland’s HR programs to motivate
employees • New Case Application on John Lewis Partnership balancing success and happiness Chapter 18 • New Future Vision: Real-time Feedback • New FYI features • New Watch It Pearson MyLab Management recommended video assignments • New Let’s Get Real • New Workplace Confidential: Responding to an Unfair Performance Review • New examples • New Ethics Dilemma • Updated Skills Exercise, new Working Together and My Turn to Be a Manager
activities • New Case Applications on Chipotle’s food contamination problems and Bring
Your Own Device programs
For Students Taking a Management Course:
What This Course Is About and Why It’s Important This course and this book are about management and managers. Managers are one thing that all organizations—no matter the size, kind, or location—need. And there’s no doubt that the world managers face has changed, is changing, and will continue to change. The dynamic nature of today’s organizations means both rewards and chal- lenges for the individuals who will be managing those organizations. Management is a dynamic subject, and a textbook on it should reflect those changes to help pre- pare you to manage under the current conditions. We’ve written this 14th edition of Management to provide you with the best possible understanding of what it means to be a manager confronting change and to best prepare you for that reality.
But not every student aspires to a career in management. And even if you do, you may be five or ten years away from reaching a managerial position. So you might rightly feel that taking a course in management now may be getting ahead of the game. We hear you. In response to these concerns, we’ve added new material to this book that is important and relevant to everyone working in an organization—manager and non-manager alike. Our “Workplace Confidential” pages identify, analyze, and offer suggestions for dealing with the major challenges that surveys indicate frustrate employees the most. You should find these pages valuable for helping you survive and thrive in your workplace. Surprisingly, this topic has rarely been addressed in business programs. Inclusion in an introductory management course appeared to us to be a logical place to introduce these challenges and to provide guidance in handling them.
A01_ROBB5839_14_GE_FM.indd 35 19/07/17 9:45 AM
Instructor Resources At the Pearson’s catalog, https://www.pearsonglobaleditions.com/Robbins, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical sup- port team is ready to help with the media supplements that accompany this text. Visit https://support.pearson.com/getsupport for answers to frequently asked questions and toll-free user support phone numbers.
The following supplements are available with this text:
• Instructor’s Resource Manual • Test Bank • TestGen® Computerized Test Bank • PowerPoint Presentation This title is available as an eBook and can be purchased at most eBook retailers.
A01_ROBB5839_14_GE_FM.indd 36 11/07/17 9:33 AM
Every author relies on the comments of reviewers, and ours have been very helpful. We want to thank the following people for their insightful comments and suggestions:
Michael Alleruzzo, St. Joseph University, PA Matthias Bollmus, Carroll University, WI Brione Burrows, Central Georgia Tech, GA M. Suzanne Clinton, University of Central Oklahoma, OK Dana J. Frederick, Missouri State University, MO Julia M. Fullick, Quinnipiac University, CT Karl Giulian, Atlantic Cape Community College, NJ Dan Morrell, Middle Tennessee State University, TN L. Renee Rogers, Forsyth Technical Community College, NC
Our team at Pearson has been amazing to work with, as always! This team of editors, production experts, technology gurus, designers, marketing specialists, sales representatives, and warehouse employees works hard to turn our files into a bound textbook and a digital textbook and sees that it gets to faculty and students. We couldn’t do this without all of you! Our sincere thanks to the people who made this book “ready to go,” including Stephanie Wall, Kris Ellis-Levy, Claudia Fernandes, Hannah Lamarre, and Nancy Moudry, as well as Kathy Smith and the team at Cenveo. All of you are consummate professionals who truly are committed to pub- lishing the best textbooks! We’re glad to have you on our team!
Finally, Steve and Mary would like to thank Joe Martocchio at the University of Illinois and Lori Long at Baldwin Wallace University for helping with this revision. They were instrumental in updating the research, examples, boxes, skill exercises, and cases. This revision could never have been done without your assistance. We thank you so much!
Global Edition Acknowledgments
We want to thank the following people for their contributions: John Opute, London South Bank University Andrew Richardson, University of Leeds Marcello Russo, University of Bologna Jon and Diane Sutherland, Freelance Writers Ken Wong, Hong Kong Polytechnic University Yong Wooi Keong, Sunway University Marian B. Wood, Freelance Writer
We would also like to thank the following people for re- viewing the Global Edition and sharing their insightful comments and suggestions: Caroline Akhras, Notre Dame University–Louaize Azim Khan Aminuddin, United Arab Emirates University Lindos Daou, Holy Spirit University of Kaslik Evangelos Dedousis, American University of Dubai Suresh George, Coventry University Richard Jefferies, The University of the West of Scotland J. C. Santora, International School of Management, Paris Vimala Venugopal, Taylor’s University Malaysia
A01_ROBB5839_14_GE_FM.indd 37 11/07/17 9:33 AM
It’s Your Career
Part 1 Introduction to Management
Chapter 1 Managers and You in the Workplace
The ABC’s of Managing Your Time Are you BUSY? Do you always seem to have a lot to do and never seem to get it done, or done on time, or are things done at the last minute under a lot of pressure and stress? If you’re like most people, the answer to these questions is YES! Well, maybe in a management textbook we need to do something about that by focusing on one aspect of management that can be tremendously useful to you . . . TIME MANAGEMENT! Time is a unique resource and one of your most valuable resources. Time is also a limited resource. First, if it’s wasted, it can never be replaced. People talk about saving time, but time can never actually be saved. Second, unlike resources such
as money or talent, which are distributed unequally in the world, time is an equal-opportunity resource. Each one of us
gets exactly the same amount of time: 24 hours per day or 168 hours each week. But as you have undoubtedly observed, some people are a lot more efficient in using their allotment. It is not uncommon to hear others say that they need additional hours to get everything done, but that is simply wishful thinking. Commit to improving your ability to manage those 168 hours so you can be more efficient and effective—in your career and in your personal life! Here are some suggestions to help you better use your time:
1. Make and keep a list of all your current, upcoming, and routine goals. Know what needs to be done daily, weekly, and monthly.
2. Rank your goals according to importance. Not all goals are of equal importance. Given the limitations on your time, you want to make sure you give highest priority to the most important goals.
3. List the activities/tasks necessary to achieve your goals. What specific actions do you need to take to achieve your goals?
4. Divide these activities/tasks into categories using an A, B, and C classification. The A’s are important and urgent. B’s are either important or urgent, but not both. C’s are routine—not important nor urgent, but still need to be done.
A key to success in management and in your career is having good time management skills.
M01_ROBB5839_14_GE_C01.indd 38 07/06/17 5:37 pm
5. Schedule your activities/tasks according to the priorities you’ve set. Prepare a daily plan. Every morning, or at the end of the previous workday, make a list of the five or so most important things you want to do for the day. Then set priorities for the activities listed on the basis of importance and urgency.
6. Plan your to-do list each day so that it includes a mixture of A, B, and C activities/tasks. And it’s best to spread the three types of tasks throughout your day so you’re not lumping together all your demanding tasks. Also, be realistic about what you can achieve in a given time period.
7. Recognize that technology makes it too easy to stay connected. Just think for a moment how many phone calls, e-mails, texts, postings
on social media, and unscheduled visitors you receive on a typical day. Some are essential to the tasks at hand, while others are distractions that do not require immediate attention. Prioritize the importance of this information.
8. Realize that priorities may change as your day or week proceeds. New information may change a task’s importance or urgency. As you get new information, reassess your list of priorities and respond accordingly.
9. Remember that your goal is to manage getting your work done as efficiently and effectively as you can. It’s not to become an expert at creating to-do lists. Find what works best for you and use it!
Like many students, you’ve probably had a job (or two) at some time or another while working on your degree. And your work experiences, regardless of where you’ve worked, are likely to have been influenced by the skills and abilities of your manager. What are today’s successful managers like and what skills do they need in dealing with the problems and challenges of managing in the twenty-first century? This text is about the important work that managers do. The reality facing today’s managers—and that might include you in the near future—is that the world is changing. In workplaces of
Pearson MyLab Management®
Improve Your Grade!
When you see this icon, visit www.mymanagementlab.com for activities that are applied, personalized, and offer immediate feedback.
● SKILL OUTCOMES 1.1 Tell who managers are and where they work.
● Know how to manage your time. 1.2 Explain why managers are important to organizations. 1.3 Describe the functions, roles, and skills of managers.
● Develop your skill at being politically aware. 1.4 Describe the factors that are reshaping and redefining the manager’s job. 1.5 Explain the value of studying management.
M01_ROBB5839_14_GE_C01.indd 39 26/07/17 11:07 AM
40 Part 1 Introduction to Management
all types—offices, stores, labs, restaurants, factories, and the like—managers deal with changing expectations and new ways of managing employees and organizing work. In this chapter, we introduce you to managers and management by looking at (1) who managers are and where they work, (2) why managers are important, and (3) what man- agers do. Finally, we wrap up the chapter by (4) looking at the factors reshaping and re- defining the manager’s job and (5) discussing why it’s important to study management.
WHO are managers and where do they work? Managers may not be who or what you might expect! Managers can range in age from 18 to 80+. They run large corporations, medium-sized
businesses, and entrepreneurial start-ups. They’re also found in government departments, hospitals, not-for-profit agencies, museums, schools, and even nontraditional organizations such as political campaigns and music tours. Managers can also be found doing managerial work in every country on the globe. In addition, some manag- ers are top-level managers while others are first-line managers. And today, managers are just as likely to be women as they are men; however, the number of women in top-level manager positions remains low—only 24 (4%) women were CEOs of Fortune 500 companies in 2014.1 Similarly, only 20 (4%) were minorities. Even in government leadership roles, women are far outnumbered by men in the U.S. Senate and House of Repre- sentatives, representing approximately 20 percent of these total elected officials.2 But no matter where managers are found or what gender or race they are, managers have exciting and chal- lenging jobs!
Who Is a Manager? It used to be fairly simple to define who managers were: They were the organizational members who told others what to do and how to do it. It was easy to differentiate man- agers from nonmanagerial employees. Now, it isn’t quite that simple. In many organiza- tions, the changing nature of work has blurred the distinction between managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include mana- gerial activities.3 For example, the gaming company Valve does not award job titles, and there is little formal supervision. Virtually any employee is free to start a project as long as the employee obtains funding and assembles a project team.4 Or consider an organization like Morning Star Company, the world’s largest tomato processor, where no employees are called managers—just 400 full-time employees who do what needs to be done and who together “manage” issues such as job responsibilities, compensa- tion decisions, and budget decisions.5 Sounds crazy, doesn’t it? But it works—for this organization. (See Case Application 2 at the end of the chapter to see how another business—Zappos—has gone bossless!)
So, how do we define who managers are? A manager is someone who coor- dinates and oversees the work of other people so organizational goals can be ac- complished. A manager’s job is not about personal achievement—it’s about helping others do their work. That may mean coordinating the work of a departmental group, or it might mean supervising a single person. It could involve coordinating the work activities of a team with people from different departments or even people outside the organization such as temporary employees or individuals who work for the organization’s suppliers. Keep in mind that managers may also have work duties not related to coordinating and overseeing others’ work. For example, an insurance claims supervisor might process claims in addition to coordinating the work activi- ties of other claims clerks.
How can managers be classified in organizations? In traditionally structured organizations (often pictured as a pyramid because more employees are at lower
manager Someone who coordinates and oversees the work of other people so organizational goals can be accomplished
Carnival Corporation’s CEO Arnold Donald is the top manager of the world’s largest cruise line, with over 100,000 employees from different cultures and countries, 10 cruise line brands, and 100 ships. His challenging job involves making decisions and developing plans that help Carnival achieve its goal “to show our guests the kind of fun that memories are made of.” Source: Jason DeCrow/AP Images for Carnival Corporation
M01_ROBB5839_14_GE_C01.indd 40 07/06/17 5:37 pm
Chapter 1 Managers and You in the Workplace 41
organizational levels than at upper organizational levels), managers can be classi- fied as first-line, middle, or top. (See Exhibit 1-1.) At the lowest level of manage- ment, first-line (or frontline) managers manage the work of nonmanagerial employees who typically are involved with producing the organization’s products or servicing the organization’s customers. These managers often have titles such as supervisors or even shift managers, district managers, department managers, or office managers. Middle managers manage the work of first-line managers and can be found between the lowest and top levels of the organization. They may have titles such as regional manager, project leader, store manager, or division man- ager. Middle managers are mainly responsible for turning company strategy into action. At the upper levels of the organization are the top managers, who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer.
Not all organizations are structured to get work done using a traditional pyra- midal form, however. Some organizations, for example, are more loosely configured, with work done by ever-changing teams of employees who move from one project to another as work demands arise. For instance, Atlassian, a global software company based in Australia, forms employee teams with the skills and experience needed for each work project. When a project is complete, the team disbands and its members join new teams. Because team members may be in separate buildings or even in sepa- rate countries, Atlassian emphasizes clear and constant communication.6 Although it’s not as easy to tell who the managers are in these organizations, we do know that someone must fulfill that role—that is, someone must coordinate and oversee the work of others, even if that “someone” changes as work tasks or projects change or that “someone” doesn’t necessarily have the title of manager.
Where Do Managers Work? It’s obvious that managers work in organizations. But what is an organization? It’s a deliberate arrangement of people to accomplish some specific purpose. Your college or university is an organization; so are fraternities and sororities, government depart- ments, churches, Google, your neighborhood grocery store, the United Way, the St. Louis Cardinals baseball team, and the Mayo Clinic. All are considered organizations and have three common characteristics. (See Exhibit 1-2.)
first-line (frontline) managers Managers at the lowest level of management who manage the work of nonmanagerial employees
middle managers Managers between the lowest level and top levels of the organization who manage the work of first-line managers
top managers Managers at or near the upper levels of the organization structure who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization
organization A deliberate arrangement of people to accomplish some specific purpose
Exhibit 1-1 Levels of Management
Exhibit 1-2 Characteristics of Organizations
M01_ROBB5839_14_GE_C01.indd 41 07/06/17 5:37 pm
42 Part 1 Introduction to Management
First, an organization has a distinct purpose typically expressed through goals the organization hopes to accomplish. Second, each organization is composed of people. It takes people to perform the work that’s necessary for the organization to achieve its goals. Third, all organizations develop a deliberate structure within which members do their work. That structure may be open and flexible, with no specific job duties or strict adherence to explicit job arrangements. For instance, most big projects at Google (at any one time, hundreds of projects are in process simultaneously) are tackled by small, focused employee teams that set up in an instant and complete work just as quickly.8 Or the structure may be more tradi- tional—like that of Procter & Gamble or General Electric or any large corpora- tion—with clearly defined rules, regulations, job descriptions, and some members identified as “bosses” who have authority over other members. In the military, there is a well-defined hierarchy. In the U.S. Air Force, the General of the Air Force is the highest ranking officer and Second Lieutenant is the lowest ranking officer. Between the two are nine officer ranks.
Many of today’s organizations are structured more like Google, with flexible work arrangements, employee work teams, open communication systems, and sup- plier alliances. In these organizations, work is defined in terms of tasks to be done. And workdays have no time boundaries since work can be—and is—done any- where, anytime. However, no matter what type of approach an organization uses, some deliberate structure is needed so work can get done, with managers overseeing and coordinating that work.
FYI • Frontline managers directly
supervise some 93 percent of all nonsupervisory employees.
• 9.3 million managers and executives were in the U.S. workforce in 2014.
• 6.9 million middle managers were in the U.S. workforce
• 2.4 million top executives were in the U.S. workforce.7
While this text presents a fairly accurate description of today’s workplace, you’re going to spend most of your work life in the future. What will that work life look like? How will it be different from today? The workplace of tomorrow is likely to include workers that are faster, smarter, more responsible—and who just happen to be robots.9 Are you at all surprised by this statement? Although robots have been used in factory and indus- trial settings for a long time, it’s becoming more com- mon to find robots in the office, and it’s bringing about new ways of looking at how work is done and at what and how managers manage. So what would the man- ager’s job be like managing robots? And even more intriguing is how these “workers” might affect how human coworkers interact with them.
As machines have become smarter, researchers have been looking at human-machine interaction and how people interact with the smart devices that are now such an integral part of our professional and per- sonal lives. One conclusion is that people find it easy to bond with a robot, even one that doesn’t look or sound anything like a real person. In a workplace setting, if a robot moves around in a “purposeful way,” people tend to view it, in some ways, as a coworker. People name their robots and can even describe the robot’s moods and tendencies. As telepresence robots become more common, the humanness becomes even more evident.
Is It Still Managing When What You’re Managing Are Robots?F U T U R E V I S I O N For example, when Erwin Deininger, the electrical engi- neer at Reimers Electra Steam, a small company in Clear Brook, Virginia, moved to the Dominican Republic when his wife’s job transferred her there, he was able to still be “present” at the company via his VGo robot. Now “robot” Deininger moves easily around the office and the shop floor, allowing the “real” Deininger to do his job just as if he were there in person. The company’s presi- dent, satisfied with how the robot solution has worked out, has been surprised at how he acts around it, feeling at times that he’s interacting with Deininger himself.
There’s no doubt that robot technology will con- tinue to be incorporated into organizational settings. The manager’s job will become even more exciting and challenging as humans and machines work together to accomplish an organization’s goals.
If your professor has chosen to assign this, go to www.mymanagementlab.com to discuss the follow- ing questions.
TALK ABOUT IT 1: What’s your response to the title of this box: Is it still managing when what you’re managing are robots? Discuss.
TALK ABOUT IT 2: If you had to “manage” peo- ple and robots, how do you think your job as manager might be different than what the chapter describes?
M01_ROBB5839_14_GE_C01.indd 42 07/06/17 5:37 pm
Chapter 1 Managers and You in the Workplace 43
WHY are managers important? What can a great boss do?
• Inspire you professionally and personally • Energize you and your coworkers to accomplish things together that you couldn’t
get done by yourself • Provide coaching and guidance with problems • Provide you feedback on how you’re doing • Help you to improve your performance • Keep you informed of organizational changes • Change your life10
If you’ve worked with a manager like this, consider yourself lucky. Such a manager can make going to work a lot more enjoyable and productive. However, even managers who don’t live up to such lofty ideals and expectations are important to organizations. Why? Let’s look at three reasons.
The first reason why managers are important is because organizations need their mana- gerial skills and abilities more than ever in uncertain, complex, and chaotic times. As orga- nizations deal with today’s challenges—changing workforce dynamics, the worldwide eco- nomic climate, changing technology, ever-increasing globalization, and so forth—managers play an important role in identifying critical issues and crafting responses. For example, BlackBerry Limited introduced software for autonomous cars. The company’s vehicle-to- vehicle software will enable cars to communicate with each other to prevent collisions and improve traffic flow.11 Teams of talented scientists and engineers create the hardware and software to make this possible. But it takes more than that to be successful. There has to be a focus on commercial potential. For example, Virgin Galactic and Xcor Aerospace are work- ing toward creating a new industry—space tourism for civilians. These companies possess the technological and scientific know-how and resources to make this a reality; however, the fare for a suborbital flight around Earth is expected to be about $100,000 per passenger.12 Most people will not have the discretionary funds to take these flights. That’s why, behind the scenes, you’d also find a team of managers who scrutinize ideas and focus on the ques- tion: Is there a sustainable market? These managers realize what is critical to success. The opposite “types” have worked together and created a successful business.13
Another reason why managers are important to organizations is because they’re critical to getting things done. For instance, Philips has thousands of general managers who supervise the work of 113,000 employees worldwide.14 These managers deal with all kinds of issues as the company’s myriad tasks are carried out. They create and coordinate the workplace environment and work systems so that others can perform those tasks. Or, if work isn’t getting done or isn’t getting done as it should be, they’re the ones who find out why and get things back on track. And these managers are key players in leading the com- pany into the future.
Finally, managers do matter to organizations! How do we know that? The Gallup Or- ganization, which has polled millions of employees and tens of thousands of managers, has found that the single most important variable in employee productivity and loyalty isn’t pay or benefits or workplace environment—it’s the quality of the relationship between employ- ees and their direct supervisors.15 In addition, global consulting firm Towers Watson found that the way a company manages and engages its people can significantly affect its financial performance.16 Companies that hire managers based on talent realize a 48 percent increase in profitability, a 22 percent increase in productivity, a 30 percent increase in employee en- gagement scores, a 17 percent increase in customer engagement scores, and a 19 percent decrease in turnover.17 That’s scary considering another study by the Gallup Organization found that leadership is the single largest influence on employee engagement.18 In yet anoth- er study by different researchers, 44 percent of the respondents said their supervisors strong- ly increased engagement.19 However, in this same study, 41 percent of respondents also said their supervisors strongly decreased engagement. And, a different study of organizational performance found that managerial ability was important in creating organizational value.20 So, as you can see, managers can and do have an impact—positive and negative. What can we conclude from such reports? Managers are important—and they do matter!
M01_ROBB5839_14_GE_C01.indd 43 07/06/17 5:37 pm
44 Part 1 Introduction to Management
WHAT do managers do? Simply speaking, management is what managers do. But that simple statement doesn’t tell us much, does it? Let’s look first at what manage-
ment is before discussing more specifically what managers do. Management involves coordinating and overseeing the work activities of others
so their activities are completed efficiently and effectively. We already know that coordinating and overseeing the work of others is what distinguishes a managerial position from a nonmanagerial one. However, this doesn’t mean that managers or their employees can do what they want anytime, anywhere, or in any way. Instead, manage- ment involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them, or at least that’s what managers should be doing.
Efficiency refers to getting the most output from the least amount of inputs or resources. Managers deal with scarce resources—including people, money, and equip- ment—and want to use those resources efficiently. Efficiency is often referred to as “doing things right,” that is, not wasting resources. For instance, Southwest Airlines has achieved operating efficiency through a variety of practices, which include using one aircraft model (Boeing 737) throughout its fleet. Using one model simplifies scheduling, operations, and flight maintenance, and the training costs for pilots, ground crew, and mechanics are lower because there’s only a single aircraft to learn.21 These efficient work practices paid off, as Southwest has made a profit for 42 consecutive years!22
It’s not enough, however, just to be efficient. Management is also concerned with employee effectiveness. Effectiveness is often described as “doing the right things,” that is, doing those work activities that will result in achieving goals. Besides being efficient, Southwest Airlines’ mission is “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”23 Two of the many reasons cited for the airlines’ effectiveness are permitting two checked bags for free and permitting a change in itinerary without incurring a pen- alty.24 Whereas efficiency is concerned with the means of getting things done, effective- ness is concerned with the ends, or attainment of organizational goals (see Exhibit 1-3). In successful organizations, high efficiency and high effectiveness typically go hand in hand. Poor management (which leads to poor performance) usually involves being inefficient and ineffective or being effective but inefficient.
management Coordinating and overseeing the work activities of others so their activities are completed efficiently and effectively
efficiency Doing things right, or getting the most output from the least amount of inputs
effectiveness Doing the right things, or doing those work activities that will result in achieving goals
Management Strives for: Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Low Waste High Attainment
Exhibit 1-3 Efficiency and Effectiveness in Management
Time Management—If your instructor is using Pearson MyLab Management, log onto www.mymanagementlab.com and test your time management knowledge. Be sure to refer back to the chapter opener!
Now let’s take a more detailed look at what managers do. Describing what manag- ers do isn’t easy. Just as no two organizations are alike, no two managers’ jobs are alike. In spite of this, management researchers have developed three approaches to describe what managers do: functions, roles, and skills.
It’s Your Career
M01_ROBB5839_14_GE_C01.indd 44 07/06/17 5:37 pm
Chapter 1 Managers and You in the Workplace 45
Management Functions According to the functions approach, managers perform certain activities or functions as they efficiently and effec- tively coordinate the work of others. What are these func- tions? Henri Fayol, a French businessman in the early part of the twentieth century, suggested that all managers per- form five functions: planning, organizing, commanding, coordinating, and controlling.25 (See Management History Module for more information.) Today, we use four functions to describe a manager’s work: planning, organizing, leading, and controlling (see Exhibit 1-4). Let’s briefly look at each.
If you have no particular destination in mind, then any road will do. However, if you have someplace in particular you want to go, you’ve got to plan the best way to get there. Because organizations exist to achieve some particular pur- pose, someone must define that purpose and the means for its achievement. Managers are that someone. As managers engage in planning, they set goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities.
Managers are also responsible for arranging and structuring work that employees do to accomplish the organization’s goals. We call this function organizing. When managers organize, they determine what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
Every organization has people, and a manager’s job is to work with and through people to accomplish goals. This is the leading function. When managers motivate subordinates, help resolve work group conflicts, influence individuals or teams as they work, select the most effec- tive communication channel, or deal in any way with employee behavior issues, they’re leading.
The final management function is controlling. After goals and plans are set (plan- ning), tasks and structural arrangements are put in place (organizing), and people are hired, trained, and motivated (leading), there has to be an evaluation of whether things are going as planned. To ensure goals are met and work is done as it should be, managers monitor and evaluate performance. Actual performance is compared with the set goals. If those goals aren’t achieved, it’s the manager’s job to get work back on track. This pro- cess of monitoring, comparing, and correcting is the controlling function.
Just how well does the functions approach describe what managers do? Do manag- ers always plan, organize, lead, and then control? Not necessarily. What a manager does may not always happen in this sequence. However, regardless of the order in which these functions are performed, managers do plan, organize, lead, and control as they manage.
planning Management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities
organizing Management function that involves arranging and structuring work to accomplish the organization’s goals
leading Management function that involves working with and through people to accomplish organizational goals controlling Management function that involves monitoring, comparing, and correcting work performance
Leading is an important function of The Container Store manager Jaimie Moeller (left). She influences the behavior of employees by leading them in a team huddle before they begin their work day. Coaching employees to succeed in the store’s team-selling environment helps Moeller achieve the store’s sales performance and customer service goals. Source: ZUMA Press Inc/Alamy
Setting goals, establishing strategies, and developing plans to coordinate activities
Determining what needs to be done, how it will be done, and who is to do it
Motivating, leading, and any other actions involved in dealing with people
Monitoring activities to ensure that they are accomplished as planned
Achieving the organization’s
Setting goals, establishing strategies, and developing plans to coordinate activities
Determining what needs to be done, how it will be done, and who is to do it
Motivating, leading, and any other actions involved in dealing with people
Monitoring activities to ensure that they are accomplished as planned
Achieving the organization’s
Exhibit 1-4 Four Functions of Management
Although the functions approach is a popular way to describe what managers do, some have argued that it isn’t relevant.26 So let’s look at another perspective.
If your professor has assigned this, go to www.mymanagementlab.com to complete the Simulation: What Is Management? and see how well you can apply the ideas of plan- ning, organizing, leading, and controlling.
Try It 1!
M01_ROBB5839_14_GE_C01.indd 45 07/06/17 5:37 pm
46 Part 1 Introduction to Management
REALlet’s get The Scenario: Micah, one of your best employees, was just promoted to a managerial position. You invited him to lunch to celebrate and to see what was on his mind about his new position. Waiting for your food to arrive, you asked him if he had any concerns or questions about being a manager. Looking straight at you, Micah said, “How is being a manager going to be different? What will I do as a manager?” How would you respond? Being a manager means that you have a greater responsibility to consider, and keep in mind big-picture organizational goals and how your work and that of your staff contribute to those goals. As a manager you also have a responsibility to think about development opportunities for any team members who may now report to you. How will you help to put them on a path toward growth and suc- cess? Maribel Lara
Director, Account Management So ur
ce : M
Mintzberg’s Managerial Roles and a Contemporary Model of Managing Henry Mintzberg, a well-known management researcher, studied actual managers at work. In his first comprehensive study, Mintzberg concluded that what managers do can best be described by looking at the managerial roles they engage in at work.27 The term managerial roles refers to specific actions or behaviors expected of and exhib- ited by a manager. (Think of the different roles you play—student, employee, student organization member, volunteer, sibling, and so forth—and the different things you’re expected to do in these roles.) When describing what managers do from a roles per- spective, we’re not looking at a specific person per se, but at the expectations and responsibilities associated with the person in that role—the role of a manager.28 As shown in Exhibit 1-5, these 10 roles are grouped around interpersonal relationships, the transfer of information, and decision making.
The interpersonal roles involve people (subordinates and persons out- side the organization) and other ceremonial and symbolic duties. The three in- terpersonal roles include figurehead, leader, and liaison. The informational roles involve collecting, receiving, and disseminating information. The three in- formational roles include monitor, disseminator, and spokesperson. Finally, the decisional roles entail making decisions or choices and include entrepreneur, disturbance handler, resource allocator, and negotiator. As managers perform these roles, Mintzberg proposed that their activities included both reflection (thinking) and action (doing).29
A number of follow-up studies have tested the validity of Mintzberg’s role catego- ries, and the evidence generally supports the idea that managers—regardless of the type of organization or level in the organization—perform similar roles.30 However, the emphasis that managers give to the various roles seems to change with organiza- tional level.31 At higher levels of the organization, the roles of disseminator, figure- head, negotiator, liaison, and spokesperson are more important; while the leader role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle or top-level managers.
managerial roles Specific actions or behaviors expected of and exhibited by a manager
interpersonal roles Managerial roles that involve people and other duties that are ceremonial and symbolic in nature
informational roles Managerial roles that involve collecting, receiving, and disseminating information
decisional roles Managerial roles that revolve around making choices
M01_ROBB5839_14_GE_C01.indd 46 07/06/17 5:37 pm
Chapter 1 Managers and You in the Workplace 47
So which approach is better, managerial functions or Mintzberg’s propositions? Although each does a good job of depicting what managers do, the functions ap- proach still seems to be the generally accepted way of describing the manager’s job. “The classical functions provide clear and discrete methods of classifying the thousands of activities managers carry out and the techniques they use in terms of the functions they perform for the achievement of goals.”32 However, Mintzberg’s role approach and additional model of managing do offer us other insights into managers’ work.
Management Skills UPS is a company that understands the importance of management skills.33 The com- pany’s new on-road supervisors are immersed in a new manager orientation where they learn people and time management skills. The company started an intensive eight-day offsite skills training program for first-line managers as a way to improve its operations. What have supervisors learned from the skills training? Some things they mentioned learning were how to communicate more effectively and important information about safety compliance and labor practices.
What types of skills do managers need? Robert L. Katz proposed that managers need three critical skills in managing: technical, human, and conceptual.34 (Exhibit 1-6 shows the relationships of these skills to managerial levels.) Technical skills are the job-specific knowledge and techniques needed to proficiently per- form work tasks. These skills tend to be more important for first-line managers
technical skills Job-specific knowledge and techniques needed to proficiently perform work tasks
A L R
RPER SONAL ROL ES
R ROL ES
Entrepreneur Monitor Mintzberg’s Managerial
Exhibit 1-5 Mintzberg’s Managerial Roles
Source: Based on H. Mintzberg, The Nature of Managerial Work (New York: Prentice Hall, 1983).
Top Managers Conceptual Human Technical
Middle Managers Conceptual Human Technical
Lower-Level Managers TechnicalHumanConceptual
Exhibit 1-6 Skills Needed at Different Managerial Levels
M01_ROBB5839_14_GE_C01.indd 47 19/07/17 9:51 AM
48 Part 1 Introduction to Management
because they typically manage employees who use tools and techniques to pro- duce the organization’s products or service the organization’s customers. Often, employees with excellent technical skills get promoted to first-line manager. For example, Dean White, a production supervisor at Springfield Remanufacturing, started as a parts cleaner. Now, White manages 25 people in six departments. He noted that at first it was difficult to get people to listen, especially his former peers. “I learned I had to gain respect before I could lead,” White said. He credits men- tors—other supervisors whose examples he followed—with helping him become the type of manager he is today.35 Dean is a manager who has technical skills, but also recognizes the importance of interpersonal skills, which involve the ability to work well with other people both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management. Managers with good human skills get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. Finally, conceptual skills are the skills managers use to think and to conceptu- alize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. Managers then can effectively direct employees’ work. For example, Ian McAllister, general manager at Amazon, indicates that a successful general manager understands the whole business. With this understanding, managers can get everyone on the same page. In turn, employees will make a substantial number of decisions in support of the company’s vision.36 These skills are most important to top managers.
Other important managerial skills that have been identified are listed in Exhibit 1-7. In today’s demanding and dynamic workplace, employees who want to be valuable assets must constantly upgrade their skills, and developing management skills can be particularly beneficial. We feel that understanding and developing management skills is so important that we’ve included a skills activity component for each chapter’s It’s Your Career opener. You’ll find that activity at www.mymanagementlab.com. In addi- tion, we’ve included a career skills feature at the end of each chapter. (The one in this chapter looks at developing your political skills.) Although completing skill-building exercises won’t m