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Preface xii

Acknowledgements xv

About the Authors xvi

Chapter 1 Managers and Management 2Who Are Managers and Where Do They Work? 4

What Four Characteristics Do All Organisations Share? 4

How Are Managers Different from Non-managerial Employees? 5

What Titles Do Managers Have? 5

From the Past to the Present 1588–1705–1911–Today 6

What Is Management? 7

What Do Managers Do? 8What Are The Four Management Functions? 8

What Are Management Roles? 9

What Characteristics Do Managers Need? 10

Is the Manager’s Job Universal? 11

A Question of Ethics 14

Why Study Management? 14

What Factors Are Reshaping and Redefining Management? 14

Why Are Customers Important to the Manager’s Job? 14

Technology and the Manager’s Job | Is it still managing when what you’re managing are robots? 15Why Are Ethics and Social Responsibility Important to a Manager’s Job? 16

Importance of Social Media to the Manager’s Job 16

Why Is Sustainability Important to the Manager’s Job? 16

Review

Chapter Summary 18 • Discussion Questions 18 • Management Skill Builder | Understanding Conflict Resolution 19 • Case Application 1—Google—Building a Better Boss 21 • Case Application 2—Managing to Create a Better World 22 • Endnotes 23

History Module: A Brief History of Management’s Roots 25

Early Management 25

Behavioural Approach 26

Classical Approaches 27

Quantitative Approach 28

Contemporary Approaches 29

Endnotes 30

Chapter 2 The Managerial Environment 32What is the External Environment of an Organisation? 34

What is the General Environment of an Organisation? 34

Technology and the Manager’s Job | Changing and improving the way managers manage 36What is the Specific Environment of an Organisation? 37

How Does the External Environment Affect Managers? 40

From the Past to the Present 41

What Is Organisational Culture and Why Is It Important? 42


How Does Organisational Culture Affect Managers? 43Review

Chapter Summary 45 • Discussion Questions 45 • Management Skill Builder | Understanding Culture 46 • Case Application 1—Tragedy in Fashion 48 • Case Application 2—Getting a Boost 49 • Endnotes 50

Ethics and Social Responsibility Module: Managing Socially Responsible and Ethical Behaviour 52

What Is Social Responsibility? 52

How Do Organisations Define Their Social Responsibilities? 52

Should Organisations Be Socially Responsible? 53

How Can Managers Identify the Ethical Thing To Do? 54

What Factors Influence Ethical and Unethical Behaviour? 55How Can Managers Encourage Ethical Behaviour? 56

Endnotes 58

Chapter 3 Foundations of Decision Making 60How Do Managers Make Decisions? 62

What Defines a Decision Problem? 62

What Is Relevant in the Decision-Making Process? 63

How Does the Decision Maker Weight the Criteria and Analyse Alternatives? 63

What Determines the Best Choice? 64

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What Happens in Decision Implementation? 65

What Is the Last Step in the Decision Process? 65

What Common Errors Are Committed in the Decision-Making Process? 65

What Are the Three Approaches Managers Can Use to Make Decisions? 67

What is the Rational Model of Decision Making? 67

From the Past to the Present 1945–1978–Today 68What is Bounded Rationality? 68

What Role Does Intuition Play in Managerial Decision Making? 68

Technology and the Manager’s Job | Making better decisions with technology 69

What Types of Decisions and Decision-Making Conditions Do Managers Face? 70

How Do Problems Differ? 70

How Does a Manager Make Programmed Decisions? 70

How Do Non-programmed Decisions Differ from Programmed Decisions? 71

How Are Problems, Types of Decisions and Organisational Level Integrated? 71

What Decision-Making Conditions Do Managers Face? 72

How Do Groups Make Decisions? 73What Are the Advantages and Disadvantages of Group Decision Making? 73

When Are Groups Most Effective? 74

How Can You Improve Group Decision Making? 75


What Contemporary Decision-Making Issues Do Managers Face? 76

How Does National Culture Affect Managers’ Decision Making? 76

Why Are Creativity and Design Thinking Important in Decision Making? 77

Review

Chapter Summary 79 • Discussion Questions 80

Management Skill Builder | Being a Creative Decision Maker 80 • Case Application 1—Lift Off 82 • Case Application 2—Big Data—Better Decisions or Big Headache? 83 • Endnotes 84

Chapter 4 Foundations of Planning 88What Is Planning and Why Do Managers Need to Plan? 90

Why Should Managers Formally Plan? 90

What Are Some Criticisms of Formal Planning and How Should Managers Respond? 91

Does Formal Planning Improve Organisational Performance? 92

What Do Managers Need to Know About Strategic Management? 93

What Is Strategic Management? 93

Why Is Strategic Management Important? 93

What Are the Steps in the Strategic Management Process? 93

What Strategic Weapons Do Managers Have? 97

Technology and the Manager’s Job | IT and strategy 97

How Do Managers Set Goals and Develop Plans? 98What Types of Goals Do Organisations Have and How Do They Set Those Goals? 98

From the Past to the Present 1954–1960s and 1970s Present 100What Types of Plans Do Managers Use and How Do They Develop Those Plans? 101

What Are Some Popular Planning Tools? 104

What Contemporary Planning Issues Do Managers Face? 107

How Can Managers Plan Effectively in Dynamic Environments? 107

How Can Managers Use Environmental Scanning? 108

A Question of Ethics 108How Can Managers Use Benchmarking? 108

Review

Chapter Summary 109 • Discussion Questions 109 • Management Skill Builder | Being a Good Goal Setter 110 • Case Application 1—A Stand-Out Success 111 • Case Application 2—Spy Games 112 • Endnotes 113

Chapter 5 Organisational Structure and Design 116

What Are the Six Key Elements in Organisational Design? 118

(1) What Is Work Specialisation? 118

(2) What Is Departmentalisation? 119

(3) What Are Authority and Responsibility? 121

(4) What Is Span of Control? 125

A Question of Ethics 126(5) How Do Centralisation and Decentralisation Differ? 126

(6) What Is Formalisation? 126

From the Past to the Present 1965–1967–1984–Present 127

How is a Mechanistic Organisation Different from an Organic Organisation? 127

What Contingency Variables Affect Structural Choice? 128How Does Strategy Affect Structure? 128

How Does Size Affect Structure? 129

How Does Culture Influence Structure? 129

How Does Technology Affect Structure? 129

How Does the Environment Affect Structure? 129

What Are Some Common Organisational Designs? 129

What Traditional Organisational Designs Can Managers Use? 129

What Contemporary Organisational Designs Can Managers Use? 132

What Are Today’s Organisational Design Challenges? 134

How Do You Keep Employees Connected? 134

Technology and the Manager’s Job | The changing world of work 135How Should Managers Delegate? 135

How do you Delegate Effectively? 136

How Do Global Differences Affect Organisational Structure? 137



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What Is Change and How Do Managers Deal with It? 190Why Do Organisations Need to Change? 191

Who Initiates Organisational Change? 192

How Does Organisational Change Happen? 192

From the Past to the Present 1943–1944–1947–Present 193

Reasons Why Change Fails 196What Are Some Techniques for Overcoming Barriers to Organisational Change? 197

What Reaction Do Employees Have to Organisational Change? 198

What is Stress? 198

What Are the Symptoms of Stress? 199

What Causes Stress? 199

How Can Stress Be Reduced? 200

A Question of Ethics 201Review

Chapter Summary 202 • Discussion Questions 202 • Management Skill Builder | Controlling Workplace Stress 203 • Case Application 1—Turning Coles Around 205 • Case Application 2—Dreamliner Nightmare 206 • Endnotes 207

Chapter 8 Foundations of Individual Behaviour 210What Are the Focus and Goals of Organisational Behaviour? 212

What Is the Focus of OB? 212

What Are the Goals of Organisational Behaviour? 212

What Role Do Attitudes Play in Job Performance? 213What Are the Three Components of an Attitude? 213

What Attitudes Might Employees Hold? 214

Do Individuals’ Attitudes and Behaviours Need to Be Consistent? 214

What Is Cognitive Dissonance Theory? 214

Technology and the Manager’s Job 215How Can an Understanding of Attitudes Help Managers Be More Effective? 216

What Do Managers Need to Know About Personality? 217

How Can We Best Describe Personality? 218

Can Personality Traits Predict Practical Work-Related Behaviours? 220

A Question of Ethics 221How Do We Match Personalities and Jobs? 221

Do Personality Attributes Differ Across Cultures? 222

How Can an Understanding of Personality Help Managers Be More Effective? 222

What Is Perception and What Influences it? 223What Influences Perception? 223

How Do Managers Judge Employees? 224

How Can an Understanding of Perception Help Managers Be More Effective? 226

How Do Learning Theories Explain Behaviour? 227What is Operant Conditioning? 227

From the Past to the Present 1927–1971–Present 227What Is Social Learning Theory? 228

How Do You Build a Learning Organisation? 138

How Can Managers Design Efficient and Effective Flexible Work Arrangements? 139

Review

Chapter Summary 141 • Discussion Questions 141 • Management Skill Builder | Increasing Your Power 142 • Case Application 1—Stores and More 143 • Case Application 2—Shortening the Corporate Ladder 145 • Endnotes 146

Chapter 6 Managing Human Resources 150What Is the Human Resource Management Process and What Influences It? 152

What Is the Legal Environment of HRM? 153

How Do Managers Identify and Select Competent Employees? 155

From the Past to the Present 1913–Present 1551 What Is Employment Planning? 155

2A How Does a Manager Reduce Their Workforce? 157

2B How Do Organisations Recruit Employees? 157

3 How Do Managers Select Job Applicants? 158

How Are Employees Provided with Needed Skills and Knowledge? 162

How Are New Employees Introduced to the Organisation? 162

What Is Employee Training? 162

Technology and the Manager’s Job | Digital HR 163

How Do Organisations Provide a Safe Working Environment? 165


How Do Organisations Retain Competent, High-Performing Employees? 166

What is a Performance Management System? 166

What Happens If an Employee’s Performance Is Not up to Par? 168

How Are Employees Compensated? 168

What Contemporary HRM Issues Face Managers? 170How Can Managers Manage Downsizing? 170

How Can Workforce Diversity Be Managed? 171

What Is Sexual Harassment? 172

What is Career Development? 173

Review

Chapter Summary 175 • Discussion Questions 175 • Management Skill Builder | Being An Effective Interviewer 176 • Case Application 1—Managing Diversity at PwC 178 • Case Application 2—Producing CHAMPS at KFC 179 • Endnotes 180

Chapter 7 Managing Change and Innovation 184How Can Managers Encourage Innovation in an Organisation? 186

How Are Creativity and Innovation Related? 186

How Can Organisations Stimulate Creativity? 186

What’s Involved in Turning Creativity into Innovation? 187

Technology and the Manager’s Job 187How Can a Manager Foster Innovation? 188

How Does Design Thinking Influence Innovation? 189



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What Are McGregor’s Theory X and Theory Y? 276

What Is Herzberg’s Two-Factor Theory? 276

From the Past to the Present→1959–1977–Today 277

How Do the Contemporary Theories Explain Motivation? 277

What Is Goal-Setting Theory? 278

How Does Job Design Influence Motivation? 279

What Is Equity Theory? 281

How Does Expectancy Theory Explain Motivation? 282

How Can We Integrate Contemporary Motivation Theories? 283

What Current Motivation Issues Do Managers Face? 284How Can Managers Motivate Employees During Difficult Economic Times? 284

How Does Country Culture Affect Motivation Efforts? 285

How Can Managers Motivate Unique Groups of Workers? 286

How Can Managers Design Appropriate Rewards Programs? 288


Chapter Summary 291 • Discussion Questions 291 • Management Skill Builder | Being a Good Motivator 292 • Case Application 1—Battling Bugs and Vanquishing Viruses 295 • Case Application 2—Netflix: Bringing the ‘A’ Game to Australia 296 • Endnotes 297

Chapter 11 Leadership and Trust 302Who Are Leaders, and What Is Leadership? 304

What Do Early Leadership Theories Tell Us About Leadership? 304

What Traits Do Leaders Have? 304

What Behaviours Do Leaders Exhibit? 304

From the Past to the Present 1951–1960–Today 307

What Do the Contingency Theories of Leadership Tell Us? 309

What Was the First Comprehensive Contingency Model? 309

How Do Followers’ Willingness and Ability Influence Leaders? 310

How Participative Should a Leader Be? 311

How Do Leaders Help Followers? 312

What Is Leadership Like Today? 313What Do the Four Contemporary Views of Leadership Tell Us? 313

What Issues Do Today’s Leaders Face? 316

Technology and the Manager’s Job | Virtual leadership 317

Why Is Trust the Essence of Leadership? 319A Final Thought Regarding Leadership 321


Chapter Summary 322 • Discussion Questions 323 • Management Skill Builder | Being a Good Leader 323 • Case Application 1—Gearing Up and Reaching Out 325 • Case Application 2—Rebuilding Trust at the Top 326 • Endnotes 327

How Can Managers Shape Behaviour? 228

How Can an Understanding of Learning Help Managers Be More Effective? 229

What Contemporary OB Issues Do Managers Face? 229How Do Generational Differences Affect the Workplace? 229

How Do Managers Deal with Bullying in the Workplace? 231

Review

Chapter Summary 233 • Discussion Questions 234 • Management Skill Builder | Understanding Employee Emotions 234 • Case Application 1—Wild Mob: Making a Difference in Australia’s Wilderness 236 • Case Application 2—Beyondblue: Changing Minds and Mindsets 237 • Endnotes 238

Chapter 9 Understanding Groups and Managing Work Teams 244

What Is a Group and What Stages of Development Do Groups Go Through? 246

What Is a Group? 246

What Are the Stages of Group Development? 246

What Are the Major Concepts of Group Behaviour? 248

What Are Roles? 248

How Do Norms and Conformity Affect Group Behaviour? 248

From the Past to the Present 1951–Today 249What Is Status and Why Is It Important? 249

Does Group Size Affect Group Behaviour? 250

Are Cohesive Groups More Effective? 250

How Are Groups Turned into Effective Teams? 251Are Work Groups and Work Teams the Same Thing? 252

What Are the Different Types of Work Teams? 252

Technology and the Manager’s Job | IT and teams 253What Makes a Team Effective? 254

A Question of Ethics 256How Can a Manager Shape Team Behaviour? 258

What Current Issues Do Managers Face in Managing Teams? 259

What’s Involved with Managing Global Teams? 259

When Are Teams Not the Answer? 260

Review

Chapter Summary 262 • Discussion Questions 262 • Management Skill Builder | Understanding How Teams Work 263 • Case Application 1—Working Together Anywhere, Anytime 265 • Case Application 2—Intel Inside . . . and Far Away 266 • Endnotes 267

Chapter 10 Motivating and Rewarding Employees 272

What Is Motivation? 274

What Do the Early Theories of Motivation Say? 274What Is Maslow’s hierarchy of Needs Theory? 274

What Is McClelland’s Three-Needs Theory? 275



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3 What Managerial Action Can Be Taken? 365

What Should Managers Control? 366When Does Control Take Place? 366

In What Areas Might Managers Need Controls? 367

Technology and the Manager’s Job 368

What Contemporary Control Issues Do Managers Confront? 370

Using Feedback to Control Employee Performance 370

Do Controls Need to Be Adjusted for Cultural Differences? 371

What Challenges Do Managers Face in Controlling the Workplace? 371

Controlling Workplace Conflict 372

Review

Chapter Summary 376 • Discussion Questions 376 • Management Skill Builder | Providing Good Feedback 377 • Case Application 1—In the Can 379 • Case Application 1—Top Secret 380 • Endnotes 381

Entrepreneurship Module: Managing Entrepreneurial Ventures 383

What Is Entrepreneurship? 383

Who’s Starting Entrepreneurial Ventures? 384

What Do Entrepreneurs Do? 384

What Planning Do Entrepreneurs Need to Do? 385What’s in a Full Business Plan? 385

What Issues Are Involved in Organising an Entrepreneurial Venture? 386What Are the Legal Forms of Organisation for Entrepreneurial Ventures? 386

What Type of Organisational Structure Should Entrepreneurial Ventures Use? 387

What Human Resource Management (HRM) Issues Do Entrepreneurs Face? 387

What Issues Do Entrepreneurs Face in Leading an Entrepreneurial Venture? 388How Can Entrepreneurs Motivate Employees? 388

How Can Entrepreneurs Be Leaders? 389

What Controlling Issues Do Entrepreneurs Face? 389How Is Growth Managed? 389

How Are Downturns Managed? 389

What’s Involved with Exiting the Venture? 390

Why Is It Important to Think About Managing Personal Challenges as an Entrepreneur? 390

Endnotes 391

Glossary 000

Index 000

Chapter 12 Communication and Interpersonal Skills 332

How Do Managers Communicate Effectively? 334How Does the Communication Process Work? 334

Are Written Communications More Effective Than Verbal Ones? 336

Is the Grapevine an Effective Way to Communicate? 336

From the Past to the Present➞1953–2009–Today 337How Do Non-verbal Cues Affect Communication? 337

What Barriers Keep Communication from Being Effective and How Can They Be Overcome? 338

How Can Managers Overcome Communication Barriers? 341


How is Technology Affecting Managerial Communication? 342

Technology and the Manager’s Job | FYEO: decoding communication jargon 344

What Communication Issues Do Managers Face Today? 344

How Do We Manage Communication in an Internet World? 344

How Does Knowledge Management Affect Communication? 345

What’s Involved with Managing the Organisation’s Knowledge Resources? 345

What Role Does Communication Play in Customer Service? 346

How Can We Get Employee Input? 347

How Should Managers Communicate when Negotiating? 347

Why Should Managers Be Concerned with Communicating Ethically? 349

Review

Chapter Summary 350 • Discussion Questions 350 • Management Skill Builder | Being a Good Listener 351 • Case Application 1—Banning Email 353 • Case Application 2—When SMS = Sexist, Mean and Stupid 354 • Endnotes 355

Chapter 13 Foundations of Control 358What Is Control and Why Is It Important? 360

What Is Control? 360

Why Is Control Important? 360


What Takes Place as Managers Control? 3611 What Is Measuring? 362

2 How Do Managers Compare Actual Performance to Planned Goals? 364

From the Past to the Present 1911–1913–1979–Today 364



Preface

A short note to students

What this book is about and why it’s importantThis book is about management and managers. Managers are one thing that all organisations – no matter the size, kind or location–need. This means that whatever you do in your career you will either manage someone else or be managed yourself. So the better you understand what managers do, the better you’ll be able to find good managers to work with and to be a good manager yourself. Put simply: learning about management is going to help you be more successful.

Our goal is to provide you with the essentials for understanding what it means to be a manager. There’s no doubt that the world that managers face has changed, is changing and will continue to change. This means that you’ll keep learning more about management throughout your career. This book will give you the best possible foundation for developing your knowledge about management and for understanding how to apply the ideas you come across to handle the challenges that managers face. To help you learn as effectively as possible we’ve adopted four key principles for this book:

1. Introduce you to the essential management principles, theories and practices. 2. Show you how understanding management will be relevant and valuable to you. 3. Make this textbook interesting and engaging so it is easier for you to learn.4. Help you develop your own managerial style and skills.

Getting the most out of your textbook: how can I get a good mark in my course?Lecturers use a textbook because it provides a compact source of information that you need to know about the subject material. This particular textbook covers the essential concepts of management and does so with a writing style that you will find interesting and straightforward.

In addition to the discussions and explanations of these management concepts, we provide several ways to help you learn effectively and get a good mark in your course. At the end of each chapter, you’ll find a ‘Chapter summary’, which provides you with a brief overview of the chapter material organised by the chapter learning outcomes. In addition to this review, you’ll find options for applying what you’ve learned–reinforcing the concepts and seeing how they’re relevant to you right now. Complete the Management Skill Builder to learn more about yourself and what your management style might be like. Then, read through the ‘Case application’ you’ll find at the end of the chapter. These stories come from current or recent business news and help illustrate the challenges managers face. Your lecturer may even assign some of these as homework. Finally, utilise the quizzes and cases on the companion website for this text: www.

pearson.com.au/highered/robbins. These great tools will help you learn and understand the management concepts covered in this book and in your class. Good luck in this course!

A short note to instructors

The approach we’ve taken to help your students learn This book has been designed to help students understand management concepts, recognise those concepts when they encounter them in everyday life and apply what they have learned

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to develop new insights, understanding and solutions. To help students learn as effectively as possible, we’ve adopted three key principles for this book. We want to show students how the material is relevant and valuable to them. We want students to be able to use what they learn to make sense of the organisations they experience and the managers they work with. Most importantly, we want to help students apply the approaches they learn about to become the kind of manager they want to be.

Show students how understanding management will be relevant and valuable to them Adult learning theory tells us that students will engage with material and therefore learn more effectively when they understand why the material is relevant and how it is useful to them. So in this book we have developed a number of features to show students how understanding management will be relevant and valuable to them. Chapter introductions spell out for students the benefits of understanding the chapter. A diverse range of examples from business, not-for-profit organisations and public sector agencies illustrates that students will benefit from understanding effective management, whatever career directions they take. To reinforce and enhance the value of learning about management, we have also included a number of chapter features to help students develop their own managerial style and skills. The Management Skill Builder feature helps students develop and practise key managerial skills. We hope these features will help students understand how to use what they are learning to become better managers in the future.

Make this textbook accessible and engaging so it is easier for students to learnWhen we researched what students valued in a management textbook they told us they valued features that made the text accessible and engaging. So, we have used simple and straightforward language to help students easily understand the material and feel more confident about studying management. As students vary so widely in their levels of English literacy, using accessible language means they can spend less time deciphering the terminology and more time learning the theory. We have not ‘dumbed down’ the material; we have just explained it as simply and clearly as we can. We have included models, tables, figures and images to create visual interest and vary the presentation of material. We have emphasised organisations and situations with which students can identify, such as planning a musical festival and working in volunteer organisations. We have used thought-provoking issues such as workplace bullying and generational differences in the workplace to encourage students to think critically about practices they may take for granted.

Provide concise coverage of essential management principles, theories and practices When we asked students how textbooks supported their learning they told us they used their text as the ‘gospel’ version of what they needed to know. So, we have provided concise yet detailed explanations of management theory and practice which can stand alone or provide a foundation on which you can build. We have outlined the historical development of management concepts so students understand how ideas about management have developed over time. The History module includes a visual timeline of the history of management. The ‘From the past to the present’ feature showcases key contributors to the development of management theory. We have focused our presentation of cases and examples on showing students how management concepts are applied in practice. We have emphasised contextual influences to help students understand when and how managers adapt their approaches. We have also included a number of chapter features which highlight aspects of contemporary management. The ‘Technology and the manager’s job’ feature discusses how technology is changing the manager’s job. The ‘Managing diversity’ feature focuses on diversity issues in organisations and reinforces to students that diversity influences every aspect of a manager’s job. The ‘ Managing for sustainability’ feature highlights sustainability issues related to the economic, social and environmental impacts of organisational activities to help students understand the complexities and trade-offs involved in managing sustainability in an organisation setting.



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Getting the most out of this textbook: helping you deliver your courseAs course instructors, we know that adopting a new text means updating teaching materials, class activities and assessments. So we have provided a range of resources to make this book a worthwhile addition to your course. We have ensured that our coverage of core topics is competitive and covers sufficient breadth to support the focus of your course. New issues and ideas are always confronting managers and we’ve made sure to cover hot topics such as social media, big data, design thinking, and managing mental health in the workplace to name a few. We have also made the cases, features and activities useful for a wide range of teaching applications. Each chapter concludes with two case applications which highlight key issues from the chapters and have been written for use in class discussions or for assessment purposes. So you can alternate the case you use for each semester or use one case as a class activity and another as an assessable case study. If your course emphasises critical thinking and problem solving, then you can use the chapter cases and ‘Right or wrong?’ dilemmas for discussions and debates. Features such as Management Skill Builder quizzes also provide useful activities for class discussions in lectures, workshops or tutorials. We've also introduced brand new, exciting, and innovative chapter openers—a Fact or Fiction questions about a common management myth. Students often think that they already know a lot about management . . . after all, it’s just common sense, right? But management isn’t just common sense! When it comes to managing, much of what passes for common sense is just plain wrong. So our new chapter openers grab students’ attention by introducing common misconceptions about management and then debunking them. Of course, there is also a suite of other support available on the companion website www.pearson.com.au/highered/

robbins, which is detailed below.

Instructor’s manualTK

Computerised testbankTK

Powerpoint slidesTK

Go ahead. Get experienced.Good luck this semester and we hope you enjoy reading this book as much as we enjoyed writing it for you.



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