CONTENTS
Part 1 INTRODUCTION TO MANAGEMENT
1 MANAGEMENT AND MANAGEMENT CAREERS = 1
Introductory Case : Player to Manager / Isiah Thomas = 2
The Importance of Management = 3
The Management Task = 3
The Role of Management = 4
Defining Management = 5
The Management Process : Management Functions = 6
Management Process and Goal Attainment = 8
Management and Organizational Resources = 8
The Universality of Management = 11
The Theory of Characteristics = 11
Management Careers = 12
A Definition of Career = 12
Career Stages, Life Stages, and Performance = 12
Promoting Your Own Career = 14
Special Career Issues = 15
Special Features for the Remaining Chapters = 17
Spotlights = 18
People Perspectives = 19
Cutting Edge = 19
Case Study : Chrysler's Top Gun = 22
Video Case : Lands' End, Inc.- A Brief History = 24
2 THE HISTORY OF MANAGEMENT = 27
Introductory Case : "Mickey's Kitchen" at The Disney Store = 28
The Classical Approach = 29
Lower-Level Management Analysis = 30
Global Spotlight : Delta Faucet Company = 31
Cutting Edge : Lewis Platt Develops Family-Friendly Work Schedules at Hewlett-Packard Company = 33
People Perspectives : "One Best Way" Considers People and Technology at Courier Publications = 34
Comprehensive Analysis of Management = 35
Limitations of the Classical Approach = 36
The Behavioral Approach = 37
The Hawthorne Studies = 37
The Human Relations Movement = 38
The Management Science Approach = 39
The Beginning of the Management Science Approach = 39
Management Science Today = 40
Quality Spotlight : Baldridge Award Exemplifies Quality = 40
Charcteristics of Management Science Applications = 41
The Contingency Approach = 41
The System Approach = 42
Types of Systems = 42
Systems and "Wholeness" = 42
The Management System = 43
Information for Management System Analysis = 44
Case Study : "Chainsaw Al Dunlop" : A New Breed of Manager? = 47
3 CORPORATE SOCIAL RESPONSIBILITY AND BUSINESS ETHICS = 49
Introductory Case : Larami Corporation "Super Soaks" Society? = 50
Fundamentals of Social Responsibility = 51
The Davis Model of Corporate Social Responsibility = 51
Areas of Corporate Social Responsibility = 53
Varying Opinions on Social Responsibility = 53
Conclusions About the Performance of Social Responsibility Activities by Business = 54
Global Spotlight : DuPont Protects the Environment = 56
People Perspectives : Anita Reddick Influences Body Shop Employees by Communicating Her Position on Social Responsibility = 57
Social Responsiveness = 58
Determining If a Social Responsibility Exists = 58
Social Responsiveness and Decision Making = 58
Approaches to Meeting Social Responsibilities = 59
Diversity Spotlight : Social Responsiveness and the Equal Opportunity Act at Opryland = 61
Social Responsibility Activities and Management Functions = 62
Planning Social Responsibility Activities = 62
Organizing Social Responsibility Activities = 64
Influencing Individuals Performing Social Responsibility Activities = 64
Controlling Social Responsibility Activities = 65
How Society Can Help Business Meet Social Obligations = 67
Business Ethics = 68
A Definition of Ethics = 68
Cutting Edge : The New Management Role Includes Practicing Ethics = 69
Why Ethics Is a Vital Part of Management Practices = 69
A Code of Ethics = 70
Creating an Ethical Workplace = 71
Case Study : Dow Coming: A Question of Legality or Ethics? = 75
4 MANAGING IN THE GLOBAL ARENA = 77
Introductory Case : Baskin-Robbins Brings U.S. Ice Cream to Vietnam = 78
Managing Across the Globe : Why? = 79
Fundamentals of International Management = 79
Categorizing Organizations by International Involvement = 81
Defining the Multinational Corporation = 82
Ethics Spotlight : U.S. Companies Send Hazardous Waste to Mexico = 85
Complexities of Managing the Multinational Corporation = 86
Risk and the Multinational Corporation = 86
The Workforce of Multinational Corporations = 86
People Perspectives : Helping Expatriates to Adjust = 89
Management Functions and Multinational Corporations = 90
Planning in Multinational Corporations = 90
Organizing Multinational Corporations = 93
Diversity Spotlight : European Organization Structures Are Becoming More Diverse = 95
Influencing People in Multinational Corporations = 96
Controlling Multinational Corporations = 97
Transnational Organizations = 97
Comparative Management : An Emphasis on Japanese Management = 99
Defining Comparative Management = 99
Insights from Japanese Motivation Strategies = 99
Cutting Edge : Japanese Managers May Have to Change Motivation Tactics = 100
Insights from Japanese Management Practices : Theory Z = 100
Case Study : A Global Success Story = 104
Video Case : Doing Business Abroad the Lands' End Way = 106
PART 2 PLANNING
5 ORGANIZATIONAL OBJECTIVES = 110
Introductory Case : Entrepreneur Suffers Growing Pains at Arkansas Freightways = 111
General Nature of Organizational Objectives = 112
Definition of Organizational Objectives = 112
Global Spotlight : Asea Brow Boverdi Decides on Global Objectives = 114
Importance of Organizational Objectives = 114
Types of Objectives in Organizations = 115
Organizational Objectives = 115
Individual Objectives = 116
Goal Intergration = 116
Areas for Organizational Objectives = 117
Cutting Edge : Objectives Areas Most Related to Success of Modern Organizations = 118
Working With Organizational Objectives = 118
Establishing Organizational Objectives = 118
Diversity Spotlight : Diversity : Objective for the Whole Organization at the Department of Transportation = 119
Guidelines for Establishing Quality Objectives = 123
Guidelines for Making Objectives Operational = 123
Attainment of Objectives = 124
How to Use Objectives = 125
Management by Objectives(MBO) = 125
People Perspectives : Building Teamwork to Reach Objectives at Harley-Davidson = 126
Factors Necessary for a Successful MBO Program = 127
MBO Programs : Advantages and Disadvantages = 127
Case Study : The Atlanta Committee for the Olympic Games(ACOG) : Setting Objectives for an Event and a City = 130
6 FUNDAMENTALS OF PLANNING = 132
Introductory Case : DuPont Plans to Make Women's Clothes = 133
General Characteristics of Planning = 134
Defining Planning = 134
People Perspectives : McDonald's Accomplishes Plans by Focusing on People = 134
Purposes of Planning = 135
Planning : Advantages and Potential Disadvantages = 135
Primacy of Planning = 136
Steps in the Planning Process = 137
The Planning Subsystem = 138
Elements of the Subsystem = 139
The Subsystem at Work = 139
Planning and the Chief Executive = 140
Final Responsibility = 140
Planning Assistance = 140
The Planner = 141
Qualifications of Planners = 141
Cutting Edge : Employees Have Special Qualifications for Flexibility Planning = 142
Duties of Planners = 142
Evaluation of Planners = 144
Maximizing the Effectiveness of the Planning Process = 145
Top-Management Support = 145
Ethics Spotlight : Top Management Supports Environmental Protection Planning at Shell Oil Company = 145
An Effective and Efficient Planning Organization = 145
Implementation-Focused Planning = 146
Inclusion of the Right People = 146
Quality Spotlight : Including the Right People in Planning Enhances Quality at Sun Microsystems = 147
Case Study : Quaker Oats Focuses on a Planning Problem = 149
7 MAKING DECISIONS = 152
Introductory Case : Cadillac Decides Whether to Make a Sport-Utility Vehicle = 152
Fundamentals of Decisions = 154
Definition of a Decision = 154
Types of Decisions = 154
Diversity Spotlight : Nonprogrammed Decision at U.S. Office of Personnel Includes a Focus on Severely Disabled Workers = 155
The Responsibility for Making Organizational Decisions = 155
Elements of the Decision Situation = 158
Global Spotlight : Executives at United Technologies Detect a Weakness among Japanese Decision Makers = 159
The Decision-Making Process = 160
Identifying an Existing Problem = 161
Listing Alternative Solutions = 162
Selecting the Most Beneficial Alternative = 162
Cutting Edge : Decision Alter-natives Should Reflect Organization Values = 163
Implementing the Chosen Alternative = 163
Gathering Problem-Related Feedback = 163
People Perspectives : Decision at John Deere: Eliminate Problems by Building Employee Investment = 164
Decision-Making Companies = 164
Complete Certainty Condition = 165
Complete Uncertainty Condition = 165
Risk Condition = 165
Decision-Making Tools = 166
Probability Theory = 166
Decision Trees = 167
Group Decision Making = 168
Advantages and Disadvantages of Using Groups to Make Decisions = 168
Processes for Making Group Decisions = 169
Case Study : The Decision to Change at General Motors Corporation = 173
8 STRATEGIC PLANNING = 175
Introductory Case : Sea World Plots a New Competitive Course = 176
Strategic Planning = 177
Fundamentals of Strategic Planning = 177
Cutting Edge : Competitive Advantage through "People Development" Strategy = 177
Strategy Management = 178
Ethics Spotlight : Quaker Oats Cashes in on Fitness Fad = 182
People Perspectives : Improving Dependent Care Builds Job Commitment at Bankers Trust Company = 185
Quality Spotlight : Lutheran General Health System's Mission Emphasizes Quality = 186
Tactical Planning = 194
Comparing and Coordinating Strategic and Tactical Planning = 194
Planning and Levels of Management = 195
Case Study : How New Strategies Could Make a Difference at IBM = 198
9 PLANS AND PLANNING TOOLS = 200
Introductory Case : Fiat Plans Car Production = 201
Plans = 201
Plans : A Definition = 201
Ethics Spotlight : Toyota Uses Philanthropy Plan to Take Aim at General Motors = 201
Dimensions of Plans = 201
Types of Plans = 204
People Perspectives : Program at Wisconsin Power & Light Builds Employee Motivation = 206
Why Plans Fail = 206
Planning Areas : Input Planning = 207
Global Spotlight : Mexico as an Attractive Manufacturing Site = 208
Cutting Edge : Choosing a Plant Site for Manufacturing Network Potential = 209
Planning Tools = 211
Forecasting = 211
Scheduling = 215
Case Study : Plans and Planning Tools = 220
Video Case : Planning in the Coming Home Division at Lands' End = 222
Part 3 ORGANIZING
10 FUNDAMENTALS OF ORGANIZING = 226
Introductory Case : MCI Communications Organizes to Be More Competitive = 227
A Definition of Organizing = 228
The Importance of Organizing = 228
The Organizing Process = 228
The Organizing Subsystem = 230
Classical Organizing Theory = 232
Structure = 232
People Perspectives : New Organization Chart at Northrop Grumman Helps Managers Explain a Newly Formed Organization = 233
Global Spotlight : Crown Cork & Seal Company Organizes by Territory to Boost International Expansion = 236
Division of Labor = 238
Quality Spotlight : Mercedes-Benz Improves Coordination to Improve Product Quality = 240
Span of Management = 240
Cutting Edge : Flatter Organizations and the New Middle Managers of the 1990s
Scalar Relationships = 243
Case Study : Three's a Company at AT&T = 247
11 RESPONSIBILITY, AUTHORITY, AND DELEGATION = 249
Introductory Case : Famous Amos : The Organizing Challenge = 250
Responsibility = 251
People Perspectives : Robert Stempel Needed to Know His Job at General Motors = 251
Dividing Job Activities = 252
Clarifying Job Activities of Managers = 254
Authority = 256
Types of Authority = 257
Ethics Spotlight : General Electric Staff Organizes Renovation = 259
Accountability = 260
Diversity Spotlight : Proctor & Gamble's Managers Held Accountable for Advancement of Minorities = 261
Delegation = 262
Steps in the Delegation Process = 262
Obstacles to the Delegation Process = 262
Eliminating Obstacles to the Delegation Process = 264
Centralization and Decentralization = 264
Cutting Edge : Steele's Market Finds Advantages in Centralizing Bakery Functions = 266
Case Study : Change Agents in Midstream = 270
12 MANAGING HUMAN RESOURCES = 272
Introductory Case : Getting the Right People for United Airlines = 273
Defining Appropriate Human Resources = 274
Steps in Providing Human Resources = 274
Recruitment = 274
People Perspectives : NationsBank Helps Women Employees with Child Care = 281
Selection = 281
Global Spotlight : Compaq Computer Company's International Selection Slip-Ups = 283
Training = 285
Cutting Edge : Lifelong Learning at Motorola = 286
Quality Spotlight : Aetna Life & Casualty Company Trains via TV = 288
Performance Appraisal = 290
Case Study : Why CE0s Are Looking at PE0s = 294
13 ORGANIZATIONAL CHANGE AND STRESS = 296
Introductory Case : Michael Dell Faces Constant Change at Dell Computer Corporation = 297
Fundamentals of Changing an Organization = 298
Defining "Changing an Organization" = 298
Change versus Stability = 299
Factors to Consider When Changing an Organization = 300
The Change Agent = 300
Determining What Should Be Changed = 301
Ethics Spotlight : Attitude Change Is the Key to Establishing a Socially Responsible Position on Job Safety at Sonoco = 302
The Kind of Change to Make = 302
Diversity Spotlight : McDonald's Corporation Is Changing the Way Employees Think about Disabled Workers = 306
People Perspectives : Lee Kun-Hee Emphasizes People While Making a Strategic Change at Samsung = 308
Individuals Affected by the Change = 309
Evaluation of Change = 312
Change and Stress = 313
Defining Stress = 313
The Importance of Studying Stress = 313
Cutting Edge : Dr. Raymond Bahr Gives Advice on How to Derail Heart Attacks = 313
Managing Stress in Organizations = 314
Case Study : Layoffs - The Cost of Doing Business = 318
Video Case : Product Development at Lands' End : From a Functional to a Team Approach = 321
Part 4 INFLUENCING
14 FUNDAMENTALS OF INFLUENCING AND COMMUNICATION = 324
Introductory Case : Eaton Managers Concentrate on Influencing People = 325
Fundamentals of Influencing = 326
Defining Influencing = 326
The Influencing Subsystem = 326
People Perspectives : The U.S. Army Teaches Leadership by Teaching Communication = 329
Communication = 329
Interpersonal Communication = 330
Global Spotliglit : Compression Labs Sends Messages via Videoconferencing = 330
Interpersonal Communication in Organizations = 337
Cutting Edge : Communicating with Customers at Intel = 339
Quality Spotlight : Enhanced Formal Communication Contributes to Improving Quality at Holiday Inn = 339
Case Study : Communication Services at Chick-fil-A Restaurants = 346
15 LEADERSHIP = 348
Introductory Case : Eisner's Leadership Challenge at Disney's New Wild Animal Kingdom = 349
Defining Leadership = 350
Leader versus Manager = 351
The Trait Approach to Leadership = 351
The Situational Approach to Leadership : A Focus on Leader Behavior = 352
Leadership Situations and Decisions = 352
Ethics Spotlight : Leader of NBC News Resigns over Ethical Debacle = 358
Leadership Behaviors = 359
Leadership Today = 367
People Perspectives : Robert Eaton Gets People Involved at Chrysler = 367
Transformational Leadership = 368
Coaching = 368
Superleadership = 369
Entrepreneurial Leadership = 370
Cutting Edge : Leader Patricia Gallup Doesn't Forget Recognition of Follower Efforts = 371
Current Topics in Leadership = 371
Substitutes for Leadership = 371
Women As Leaders = 372
Ways Women Lead = 372
Diversity Spotlight : For James G. Kaiser of Corning, Being Employee-Centered Includes a Focus on Diversity = 373
Case Study : Come Fly the Turbulent Skies = 376
16 MOTIVATION = 378
Introductory Case : American Greetings Motivates through Lateral Moves = 379
The Motivation Process = 380
Defining Motivation = 380
Process Theories of Motivation = 380
Cutting Edge : Blimp Rides Used as Rewards for Outstanding Performance = 383
Content Theories of Motivation : Human Needs = 384
Global Spotlight : Maslow's Hierarchy and Japanese, Chinese, and U.S. Workers = 385
Motivating Organization Members = 388
The Importance of Motivating Organization Members = 388
Strategies for Motivating Organization Members = 389
Quality Spotlight : Apple Computer's Job Enrichment Excels = 392
People Perspectives : Job Satisfaction Is a More Powerful Motivator Than Money at Microsoft = 397
Case Study : Why Bart Simpson Flies Western Pacific Airlines = 400
17 GROUPS, TEAMS, AND CORPORATE CULTURE = 402
Introductory Case : Groups Are Important to Progress at Rolls-Royce = 403
Groups = 404
Kinds of Groups in Organizations = 404
Formal Groups = 404
Diversity Spotlight : Managing a Diverse Salesforce Takes Special Insight at Equitable = 405
Ethics Spotlight : Calvary Hospital Forms Ethics Committees = 406
Informal Groups = 411
Managing Work Groups = 412
Determining Group Existence = 413
Understanding the Evolution of Informal Groups = 414
Teams = 415
Groups versus Teams = 415
Cutting Edge : The Virtual Team - A New Type of Team in Organizations = 416
Types of Teams in Organizations = 416
People Perspectives : Managers Must Empower Work Teams = 418
Stages of Team Development = 419
Team Effectiveness = 420
Trust and Effective Teams = 421
Corporate Culture = 422
The Significance of Corporate Culture = 422
Case Study : Whose Turn Is It to Polish the Apple? = 426
18 UNDERSTANDING PEOPLE : ATTITUDES, PERCEPTION, AND LEARNING = 428
Introductory Case : Reviving Workplace Attitudes = 429
What Are Attitudes? = 430
How Beliefs and Values Create Attitude = 430
Attitudes and Behavior = 430
People Perspectives : Changing Attitudes toward Surveys
Quality Spotlight : Nucor Steel = 436
Cutting Edge : We Hire Attitudes! = 436
Perception = 438
Perception and the Perceptual Process = 438
Attribution Theory : Interpreting the Behavior of Others = 439
Perceptual Distortions = 440
Global Spotlight : The Wide, Wide World of Cultural Perceptions = 441
Perceptions of Procedural Justice = 442
Learning = 443
Learning Strategies = 445
Case Study : Sending the Wrong Signal = 447
Video Case : Lands' End : Controlling a Much Envied Work Climate = 450
Part 5 CONTROLLING
19 PRINCIPLES OF CONTROLLING = 454
Introductory Case : Controlling at Polaroid = 455
The Fundamentals of Controlling = 456
Defining Control = 456
Defining Controlling = 456
Global Spotlight : Controlling Finances at Euro Disneyland = 459
People Perspectives : Toyota Takes Corrective Action by Changing Its President = 462
Types of Control = 463
Cutting Edge : Ford Uses Virtual Reality as a Feedback Control Tool = 463
Diversity Spotlight : Feedback Control Induces Cosmetics Industry to Develop New Products for Diverse Population Segments = 464
The Controller and Control = 464
The Job of the Controller = 465
How Much Control Is Needed? = 465
Power and Control = 466
A Definition of Power = 467
Total Power of a Manager = 467
Steps for Increasing Total Power = 468
Performing the Control Function = 469
Potential Barriers to Successful Controlling = 469
Making Controlling Successful = 470
Case Study : Who Killed Barings Bank? = 473
20 PRODUCTION MANAGEMENT AND CONTROL = 475
Introductory Case : The Quick Turn at USAir = 476
Production = 477
Defining Production = 477
Cutting Edge : Chrysler Uses Teams to Speed Up Production Process = 477
Productivity = 478
People Perspectives : Characteristics of Japanese Employment Motivate Workers to Improve Productivity = 478
Quality and Productivity = 479
Quality Spotlight : Focusing on Quality at Adidas USA = 481
Automation = 483
Strategies, Systems, and Processes = 483
Operations Management = 484
Defining Operations Management = 484
Operations Management Considerations = 484
Efflics Spotlight : Firestone Exist LaVergne = 486
Operations Control = 490
Just-in-Time Inventory Control = 490
Maintenance Control = 491
Cost Control = 491
Budgetary Control = 492
Ratio Analysis = 493
Materials Control = 494
Selected Operations Control Tools = 495
Using Control Tools to Control Organizations = 496
Inspection = 496
Management by Exception = 496
Management by Objectives = 496
Breakeven Analysis = 496
Other Broad Operations Control Tools = 500
Case Study : Sun Also Rises = 504
21 INFORMATION AND TECHNOLOGY = 506
Introductory Case : Sam Walton Taught Others at Wal-Mart to Use Information = 507
Essentials of Information = 508
Factors Influencing the Value of Information = 508
Information Appropriateness = 509
Information Quality = 509
Information Timeliness = 509
Information Quantity = 509
Evaluating Information = 511
The Management Information System(MIS) = 513
Global Spotlight : Pohang Iron & Steel Company Needs a Complex MIS = 513
Describing the MIS = 514
Diversity Spotlight : Target's MIS Focuses on Hispanic Workers = 515
Establishing an MIS = 517
Information Technology = 521
Computer Assistance in Using Information The Management Decision Support System(MDSS) = 524
Computer Networks = 526
People Perspectives : People Are the Key to Making the Network Work at Arthur Andersen = 527
The Local Area Network = 527
The Internet = 528
Cutting Edge : Dell Computer Company Surfs the Internet to Service Customers and Build Its Image = 529
Case Study : The Internet Becomes a Technological Battlefield = 534
Video Case : Lands' End : Getting The Product Out to the Customer = 536
Part 6 TOPICS FOR SPECIAL EMPHASIS
22 QUALITY : BUILDING COMPETITIVE ORGANIZATIONS = 540
Introductory Case : IOMEGA Corporation : Success Built on Continuous Improvement = 541
Fundamentals of Quality = 542
Defining Total Quality Management = 542
Quality Spotlight : "Quality is Job 1" at Ford = 542
The Importance of Quality = 543
Established Quality Awards = 543
Achieving Quality = 545
Ethics Spotlight : American Marketing Association Promotes "Zero Defects" Ethics = 547
Cutting Edge : The Shingo Prize for Excellence in Manufacturing = 548
Quality Through Strategic Planning = 550
Environmental Analysis and Quality = 550
Establishing Organizational Direction and Quality = 551
Strategy Formulation and Quality = 551
Strategy Implementation and Quality = 553
Strategic Control and Quality = 554
The Quality Improvement Process = 555
The Incremental Improvement Process = 555
People Perspectives : Keeping People Involved in Incremental Improvement : Bearings, Inc. = 557
Reengineering Improvements = 558
Case Study : Total Quality Management : Learning to Make It Work = 561
23 MANAGEMENT AND DIVERSITY = 563
Introductory Case : Ortho Pharmaceutical : "Showcase" for Cultural Diversity = 564
Defining Diversity = 565
The Social Implications of Diversity = 565
Advantages of Diversity in Organizations = 566
Gaining and Keeping Market Share = 566
People Perspectives : The Bank of Montreal Encourages Minority Workers to Maximize Potential : Gaining Advantage with Customers = 566
Cost Savings = 567
Increased Productivity and Innovation = 567
Better-Quality Management = 567
Diversity Spotlight : General Electric Values Global Sensitivity = 569
Challenges That Managers Face in Working With Diverse Populations = 569
Changing Demographics = 569
Global Spotlight : AT&T Connects the World = 570
Ethnocentrism and Other Negative Dynamics = 571
Negative Dynamics and Specific Groups = 572
Cutting Edge : Study Shows that Older Workers Are Valuable = 573
Strategies for Promoting Diversity in Organizations = 574
Workforce 2000 = 575
Equal Employment and Affirmative Action = 576
Organizational Commitment to Diversity = 576
Pluralism = 578
The Role of the Manager = 580
Management Development and Diversity Training = 582
Case Study : Levi Strauss : Valuing Diversity = 586
Video Case : Giving High Quality Customer Service : A Focal Point at Lands' End = 588
