jennifer m. george - gbv · personality traits 46 the big five personality traits manager as a...

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Gareth R. JonesTexas A&M University

Jennifer M. GeorgeRice University

Grain;Hill

McGraw-HillIrwin

Chapter One The Management Process Today

ManagementSnapshot

Joe Coulombe Makes TraderJoe's a Small BusinessSuccess Story

Overview

What Is Management? 4Achieving High Performance:A Manager's Goal 5Why Study Management? 6

Essential ManagerialTasks 7

Planning 8Organizing 9Leading 10Controlling 10

Levels and Skills ofManagers 11

Levels of Management 11Managerial Skills 13

Recent Changes inManagement Practices 16

Restructuring andOutsourcing 17Empowerment andSelf-Managed Teams 17Information Technology Byte:IBM Creates GlobalSelf-Managed Teams 19

Chapter Two Values, Attitudes, Emotions, and Culture:The Manager as a Person 44

Management SnapshotRyla's Caring Culture 45

Overview 46

Endur ing Characteristics:Personality Traits 46

The Big Five PersonalityTraitsManager as a Person: WhoWould Have Thought Dirty JobsWould Be a Hit?

47

50

Other Personality Traits ThatAffect Managerial Behavior 52

Values, Attitudes, andMoods and Emotions

Values: Terminal andInstrumentalEthics in Action: Telling theTruth at Gentle Giant MovingAttitudesMoods and Emotions

53

53

55

56

60

Emotional Intelligence 62

vi

Management in Action

Challenges forManagement in a GlobalEnvi ronment 20

Building Competitive

Advantage 20

Maintaining Ethical and SociallyResponsible Standards 23

Ethics in Action: How Notto Run a Meatpacking Plant 24

Managing a Diverse

Workforce 25

IT and E-Commerce 26

Practicing Global CrisisManagement 27

Summary and Review

Management in ActionTopics for Discussion andActionBuilding Management Skills:Thinking about Managers andManagementManaging EthicallySmall Group Breakout Exercise:Opening a New RestaurantBe the Manager: Problems atAchievaBusinessWeek Case in the News:The Art of CEO SuccessionBusinessWeek Case in the News:The Outsider at Ford

28

29

29

2930

Appendix A: History ofManagement Thought

F. W. Taylor and ScientificManagement

Weber's Bureaucratic Theory

The Work of Mary ParkerFollett

The Hawthorne Studies andHuman Relations

Theory X and Theory Y

35

35

37

39

40

4130

31

31

32


Organizational Culture 62Managers andOrganizational Culture 64

The Role of Values and Normsin Organizational Culture 65

Culture and ManagerialAction 70

S u m m a r y a n d Review 72

Managemen t in Action 73Topics for Discussion and Action 73Building Management Skills:Diagnosing Culture 73Managing Ethically 73

Small Group Breakout Exercise:Making Difficult Decisions inHard Times 74Be the Manager 74BusinessWeek Case in the News:Weaving a New Kind of Company 75BusinessWeek Case in the News:A Steely Resolve 76

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1Chapter Three Managing Ethics and Diversity 78

Managemento r ^Snapshot

Taking Care of Employees atCostco 79

Overview

The Nature of EthicsEthical DilemmasEthics and the LawChanges in Ethicsover Time

Stakeholders and EthicsStockholdersManagers

EmployeesSuppliers and DistributorsCustomersCommunity, Society,and NationRules for Ethical DecisionMaking

80

80

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85

8787

88

88

89

Why Should Managers BehaveEthically?Sources of an Organization'sCode of EthicsEthical OrganizationalCulturesEthics in Action: Johnson &Johnson's Ethical Culture

The Increasing Diversityof the Workforce and theEnvironment

Age

GenderRace and Ethnicity

Religion

91

93

95

97

98

99

99

101

102

Chapter Four

ManagementSnapshot

IKEA Is on Top of theFurniture World

Managing in the Global Environment

121

Overview 122

120

What Is the GlobalEnvironment?

The Task EnvironmentSuppliersManaging Globally: GlobalSupply Chain Management

Distributors

123

124

124

126

127

Customers

Competitors

Managing Globally:American Rice Invades Japan

The GeneralEnvironment

Economic Forces

128

128

132

132

133

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Capabilities/DisabilitiesSocioeconomic Background

Sexual Orientation

Focus on Diversity: PreventingDiscrimination Based on SexualOrientationOther Kinds of Diversity

Managers and theEffective Management ofDiversity

Critical Managerial Roles

102104

105

105106

107

107

Effectively ManagingDiversity MakesGood Business Sense

Sexual HarassmentForms of SexualHarassment

Steps Managers CanTake to Eradicate Sexual

Harassment

108

110

111

111

Summary and Review 113

Management in Action 114Topics for Discussionand Action 114Building Management Skills: SolvingDiversity-Related Problems 114Managing Ethically 114Small Group Breakout Exercise:Determining If a Problem Exists 115Be the Manager 115BusinessWeek Case in theNews: As Factories Fail, So DoesBusiness Law 116BusinessWeek Case in theNews: Don't Treat Them LikeBaby Boomers 117

Technological Forces 133

Sociocultural Forces 134

Demographic Forces 135

Political and Legal Forces 136

The Changing GlobalEnvironment 137

Managing Globally:Customizing Food to theTastes of Different Cultures 138The Process of Globalization 139Declining Barriers to Trade andInvestment 140

Declining Barriers of Distanceand Culture • 141Effects of Free Trade onManagers 142

The Role of NationalCulture 144

Cultural Values and Norms 144Hofstede's Model of NationalCulture 145

Managing Globally: A GaijinWorks to Turn Around Sony 146National Culture and GlobalManagement 148



Management in Action 150Topics for Discussion and Action 150Building Management Skills:Analyzing an Organization'sEnvironment 150Managing Ethically 151Small Group Breakout Exercise:How to Enter the CopyingBusiness 151Be the Manager: The ChangingEnvironment of Retailing 151BusinessWeek Case in the News: CanOutsourcing Save Sony? 152BusinessWeek Case in the News: TheOther Mexico: A Wave ofInvestment 153

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Chapter Five Decision Making, Learning, Creativity,and Entrepreneurship 156

ManagementSnapshot

Good Decision Makingat Puma 157

Overview 158

The Nature of ManagerialDecision Making

Programmed andNonprogrammed DecisionMakingFocus on Diversity:Programmed DecisionMaking at UPS

The Classical Model

The Administrative Model

Steps in the Decision-Making Process

Recognize the Needfor a Decision

159

160

161

163

163

166

167

Generate Alternatives

Assess Alternatives

Choose among Alternatives

Implement the ChosenAlternative

Learn from Feedback

Group DecisionMaking

The Perils of Groupthink

Devil's AdvocacyDiversity among DecisionMakers

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167

168

169

170

170

170

171

171

172

Chapter Six

ManagementSnapshot

How Mattel's BarbieKnocked Out the Bratz Doll

Planning, Strategy, andCompetitive Advantage 186

Overview

Planning a n d Strategy 189

The Nature of the Planning187 Process 190

Why Planning Is Important 190

Levels of Planning 191

Levels and Types ofPlanning 192

Time Horizons of Plans 194

Standing Plans andSingle-Use Plans 194

Determining theOrganization's Missionand Goals 195

Defining the Business 196

Establishing Major Goals 196

Formula t ing Strategy 196SWOT Analysis 197

Manager as a Person:Douglas Conant Keeps

Stirring Up Campbell Soup 198

The Five Forces Model 200


Organizational Learningand Creativity

Creating a LearningOrganization

Promoting IndividualCreativity

Promoting GroupCreativity

172

172

174

174

Entrepreneurship andCreativity

Ethics in Action: FindingFunding to Do Good

Entrepreneurship andNew Ventures

Intrapreneurship andOrganizational Learning

176

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Management in Action 181Topics for Discussion and Action 181Building Management Skills:How Do You Make Decisions? 181Managing Ethically 182Small Group Breakout Exercise:Brainstorming 182Be the Manager 182BusinessWeek Case in the News:Real Life Imitates Real World 183BusinessWeek Case in theNews: Tata Taps a Vast R&DShop—Its Own 184


Formulating Business-LevelStrategies 201

Low-Cost Strategy 201

Differentiation Strategy 202

"Stuck in the Middle" 202

Focused Low-Cost andFocused DifferentiationStrategies 203

Management Insight:Different Ways to Competein the Soft-Drink Business 204

Formulat ing Corporate-Level Strategies 206

Concentration on a Single •Industry 206

Vertical Integration 207

Diversification 209

Management Insight: Howto Make Related DiversificationWork 209

International Expansion 211

Planning andImplementing Strategy 216


Management in Action 218Topics for Discussion and Action 218Building Management Skills:How to Analyze a Company'sStrategy 218

Managing Ethically 218Small Group Breakout Exercise:Low Cost or Differentiation? 219Be the Manager 219BusinessWeek Case in the News:How Acer Is Burning Its PC Rivals 219BusinessWeek Case in the News:How Procter & Gamble Plansto Clean Up 220

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Chapter Seven Designing Organizational Structure 222

ManagementSnapshot

Avon Is Calling for a NewStructure 223

Overview 224

Designing OrganizationalStructure

The OrganizationalEnvironment

Strategy

Technology

Human Resources

Grouping Tasks intoJobs: Job Design

Job Enlargement and JobEnrichment

224

225

226

226

227

228

229

The Job CharacteristicsModel 229

Grouping Jobs intoFunctions and Divisions:Designing OrganizationalStructure 231

Functional Structure 231

Divisional Structures:Product, Market, andGeographic 233

Chapter Eight Control, Change, and Entrepreneurship 258

HiH• • • • • • • •

ManagementSnapshot

A New Approach toControl at Ford

Overview

What Is OrganizationalControl?

The Importance ofOrganizational Control

Control Systems and IT

The Control Process

Output ControlFinancial Measures ofPerformance

Management Insight:Making the FinancialFigures Come Alive

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264

268

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269

Organizational Goals

Operating Budgets

Problems with OutputControl

Behavior ControlDirect SupervisionManagement by Objectives

Bureaucratic Control

Problems with BureaucraticControl

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273

273274

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Managing Globally: Nokia'sGeographic Structure HelpsIt Conquer the World 237

Matrix and Product TeamDesigns 238

Hybrid Structure 241

Coordinating Functionsand Divisions 242

Allocating Authority 242

Managing Globally: Howto Use Empowered Self-Managed

Teams 246

Integrating andCoordinating Mechanisms 247

Strategic Alliances,B2B Network Structures,and IT 249

Ethics in Action: Of Shoes

and Sweatshops 251


Management in Action 253Topics for Discussion and Action 253Building Management Skills:Understanding Organizing 253Managing Ethically 254Small Group Breakout Exercise:Bob's Appliances 254Be the Manager 255BusinessWeek Case in the News:Yahoo's Bartz Shows Who's Boss 256BusinessWeek Case in the News:GSK and Pfizer Create New HIVCompany 257


Organizational Culture andClan Control 277

Manager as a Person:James Casey Creates aCulture for UPS 278

Adaptive Cultures versus InertCultures 279

Organizational Change 281

Assessing the Needfor Change

Deciding on the Change toMake

Implementing the Change

Manager as a Person:Bob Iger's Big Changes atWalt Disney

Evaluating the Change

282

283

284

284

285

Entrepreneurship, Control,and Change 286

S u m m a r y and Review 287

Management in Action 289Topics for Discussion and Action 289Building Management Skills:Understanding Controlling 289Managing Ethically 290Small Group Breakout Exercise: HowBest to Control the Sales Force? 290Be the Manager 290BusinessWeek Case in theNews: How Amazon Aims toKeep You Clicking 290

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<Jhapter INine

ManagementSnapshot

Motivation at EnterpriseRent-A-Car

Motivation

Overview 296

The Nature of Motivation 297

Expectancy TheoryExpectancy

2 9 5 Instrumentality

Valence

Management Insight:Motivating and RetainingEmployees at the ContainerStoreBringing It All Together

Need Theories

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299301

301

301303

303

Maslow's Hierarchyof Needs

294

303

Herzberg's Motivator-HygieneTheory

McClelland's Needs forAchievement, Affiliation, ancPower

Other Needs

Information TechnologyByte: High Motivation Rules atthe SAS Institute

Equity Theory

305

I305

306

306

307

Chapter Ten

ManagementSnapshot

Judy McGrath andMTV Networks 327

Leaders and Leadership 326

Overview 328

The Nature ofLeadership 328

Personal LeadershipStyle and Managerial Tasks 329Ethics in Action: ServantLeadership at Zingerman's 330Leadership Styles acrossCultures 331

Power: The Key toLeadership 332

Empowerment: AnIngredient in ModernManagement 334

Trait a n d Behavior Modelsof Leadership 335

The Trait Model 335

The Behavior Model 336

Contingency Models ofLeadership 337

Fiedler's ContingencyModel 337

House's Path-Goal Theory 340

The Leader SubstitutesModel 341Bringing It All Together 341

TransformationalLeadership 342

Being a Charismatic Leader 343Stimulating SubordinatesIntellectually 344

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EquityInequityWays to Restore Equity

Goal-Setting Theory

Learning TheoriesOperant ConditioningTheorySocial Learning Theory

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310

312

312

314

Pay and Motivation 316

Basing Merit Pay on Individual,Group, or Organizational

PerformanceSalary Increase or Bonus?Examples of Merit

Pay Plans

n -t c

31b

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318

Summary and ReviewManagement in ActionTopics for Discussion and ActionBuilding Management Skills:Diagnosing MotivationManaging EthicallySmall Group Breakout Exercise:Increasing MotivationBe the ManagerBusinessWeek Case in theNews: The Chore Goes OffshoreBusinessWeek Case in theNews: The Case for UnequalPerks

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Engaging in DevelopmentalConsideration 344The Distinction betweenTransformational andTransactional Leadership 345

Gender and Leadership 345

Emotional Intelligenceand Leadership 347

Focus on Diversity:Admitting a Mistake Helps a

Small-Business Leader 347

Summary and ReviewManagement in ActionTopics for Discussion and ActionBuilding Management Skills:Analyzing Failures of LeadershipManaging EthicallySmall Group Breakout Exercise:Improving LeadershipEffectivenessBe the ManagerBusinessWeek Case in theNews: Are People in YourOffice Acting Oddly?BusinessWeek Case in theNews: Taking the Ted Out ofTurner Broadcasting

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Chapter Eleven Effective Team Management 356

ManagementSnapshot

Teams at ICU Medical 357

Overview

Groups, Teams, andOrganizationalEffectiveness

Groups and Teams asPerformance Enhancers

Groups, Teams, andResponsiveness toCustomers

Teams and Innovation

Information TechnologyByte: Pizza Teams Innovateat Amazon

Groups and Teams asMotivators

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358

359

360

360

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362

Types of Groupsand Teams

The Top-Management Team

Research and DevelopmentTeams

Command Groups

Task Forces

Self-Managed Work Teams

Management Insight:Self-Managed Teams at LouisVuitton and Nucor Corporation

Virtual Teams

Friendship Groups

Interest Groups

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368

Chapter Twelve Building and Managing Human Resources 388

ManagementSnapshot

Effectively ManagingHuman Resources at theFour Seasons 389

Overview 390

Strategic HumanResource Management 391

Overview of theComponents of HRM 392

T h e Legal Environmentof H R M 393

Recruitment andSelection 394

Human Resource Planning 395

Job Analysis 396

External and InternalRecruitment 397

Information TechnologyByte: Fog Creek Software'sApproach to Recruiting

The Selection Process

Training andDevelopment

Types of Training

Types of Development

Transfer of Training andDevelopment

398

399

403

403

404

406

Performance Appraisa la n d Feedback 406

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Group DynamicsGroup Size and Roles

Group Leadership

Group Development

over Time

Group Norms

Group Cohesiveness

368

368

370

370

371

374

Managing Groupsand Teams for HighPerformance 377

Motivating Group Membersto Achieve OrganizationalGoals 377

Reducing Social Loafingin Groups 379

Summary and Review 381Management in Action 382Topics for Discussion and Action 382Building Management Skills:Diagnosing Group Failures 382Managing Ethically 383Small Group Breakout Exercise:Creating a Cross-FunctionalTeam 383Be the Manager 383BusinessWeek Case in the News:The Globe Is IBM's Classroom 384BusinessWeek Case in the News:Managing at a Distance 385


Types of PerformanceAppraisal

Who Appraises

Performance?

Effective PerformanceFeedback

Pay and BenefitsPay Level

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408

409

411

411

Pay Structure

Benefits

Focus on Diversity: Family-

Friendly Benefits at GuerraDeBerry Coody

Labor RelationsUnions

Collective Bargaining

411

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415

Summary and Review 416Management in Action 417Topics for Discussion and Action 417Building Management Skills:Analyzing Human ResourceSystems 417Managing Ethically 4 1 /Small Group Breakout Exercise:Building a Human ResourceManagement System 418Be the Manager 418BusinessWeek Case in the News:How P&G Finds—and Keeps—aPrized Workforce 419BusinessWeek Case in the News:Job Review in 140 Keystrokes 420

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Chapter Thirteen Communication and InformationTechnology Management 422

n Overview

Management Information and theSnapshot Manager's Job

Herman Miller's Office of the & J

p u t u r e 423 Attributes of UsefulInformation

Information Systems andTechnology

Information and DecisionMaking

Information andControl

Information andCoordination

Communication,Information, andManagement

The Importance of GoodCommunication

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424

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427

427

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Information Technology Byte:Collaboration Software FacilitatesCommunication in Teams 430The Communication Process 431

The Dangers of IneffectiveCommunicationManagement Insight:Managers Need Feedbackfrom Employees

Information Richnessand CommunicationMedia

Face-to-FaceCommunicationSpoken CommunicationElectronically Transmitted

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Chapter Fourteen Operations Management: ManagingVital Operations and Processes 452

ManagementSnapshot

Why Toyota Is a Leader inOperations Management 453

Overview 454

Operations Managemen tand CompetitiveAdvantage 454

Improving Responsivenessto Customers 455

What Do Customers Want? 456Designing ProductionSystems to Be Responsive toCustomers 456

Customer RelationshipManagement 457

Information Technology Byte:How CRM Helped EmpireHealthChoice 458

Improving Qual i ty 459

Improving Efficiency 460Facilities Layout,Flexible Manufacturing,and Efficiency 461

Manager as a Person: Howto Improve Facilities Layout 462

Managing Globally: Igus'sFactory of the Future 464

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Personally AddressedWritten Communication 438Impersonal WrittenCommunication 439

Advances in InformationTechnology 440

The Tumbling Price ofInformation 440Wireless Communications 441Computer Networks 441Software Developments 442

Types of ManagementInformation Systems 443

The OrganizationalHierarchy: The TraditionalInformation System 443

Transaction-ProcessingSystems 444Operations InformationSystems 444Decision Support Systems 445Expert Systems andArtificial Intelligence 445Manager as a Person: HowJudy Lewent Became One ofthe Most Powerful Women inCorporate America 446

Limitations of InformationSystems 447

S u m m a r y a n d Review 447

Management in Action 449Topics for Discussion and Action 449Building Management Skills:Diagnosing IneffectiveCommunication 449Managing Ethically 449Small Group Breakout Exercise:Using New Information Systems 450Be the Manager: A Problem inCommunication 450BusinessWeek Case in theNews: IBM's Big Push intoBusiness Consulting 451


Just-in-Time Inventory andEfficiency 465Self-Managed Work Teamsand Efficiency 466Process Reengineeringand Efficiency 466

Operations Management:Some RemainingIssues 468

Ethics in Action: The HumanCost of Improving Productivity 468

Summary and ReviewManagement in ActionTopics for Discussion and ActionBuilding Management Skills:Managing a Production SystemManaging EthicallySmall Group Breakout Exercise:How to Compete in the SandwichBusinessBe the Manager: How toBuild Flat Panel DisplaysBusinessWeek Case in theNews: How Kiva Robots HelpZappos and Walgreen

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Appendix B: CareerDevelopment

Types of CareersCareer StagesEffective Career Management

GlossaryNotesPhoto CreditsName IndexSubject IndexCompany Index

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jennifer m. george - gbv · personality traits 46 the big five personality traits manager as a...

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