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Fundamentals
of Management
ELEVENTH EDITION
GLOBAL EDITION
STEPHEN P. ROBBINS
San Diego State University
MARY COULTER
Missouri State University
DAVID A. DECENZO
Coastal Carolina University
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Brief Contents
Part 1 Introduction
Chapter 1 Managing Today 26
History
Module A Brief History of Management’s Roots 54
Chapter 2 The Manager as Decision Maker 62
Quantitative
Module Quantitative Decision-Making Tools 94
Chapter 3 Important Managerial Issues 102
Part 2 Planning
Chapter 4 The Management Environment 128
Chapter 5 Managing Change and Innovation 154
Entrepreneurship
Module Managing Entrepreneurial Ventures 184
Chapter 6 Planning and Goal Setting 210
Part 3 Organizing
Chapter 7 Structuring and Designing Organizations 244
Chapter 8 Managing Human Resources and Diversity 280
Professionalism
Module Professionalism and Employability 321
Chapter 9 Managing Work Groups and Work Teams 326
Part 4 Leading
Chapter 10 Understanding Individual Behavior 356
Chapter 11 Motivating and Rewarding Employees 392
Chapter 12 Understanding Leadership 424
Chapter 13 Managing Organizational and Interpersonal
Communication 456
Part 5 Controlling
Chapter 14 Controlling Work and Organizational Processes 486
Operations
Module Managing Operations 516
Glossary 535
Index 542
5
Contents
Content highlighted in purple indicates that it is presented via a visual spread.
Preface 14 Applying: Getting Ready for the Workplace

Instructor Teaching Resources 22 Management Skill Builder | Becoming Politically Adept 47
• Experiential Exercise 48 • Case Application #1—Training
About the Authors 24
Better Managers . . . Now at Walmart 49 • Case
Application #2—Managing without Managers 50 • Case
Application #3—Destroying the World 51 • Endnotes 52
Part 1 Introduction
History Module: A Brief History of Management’s
Chapter 1 Managing Today 26 Roots 54
Who Are Managers and Where Do They Work? 29
What Three Characteristics Do All Organizations Early Management 54
Share? 29 Classical Approaches 55
How Are Managers Different from Nonmanagerial Other Early Twentieth-Century Contributors: A Diversity
Employees? 30 Perspective 56
What Titles Do Managers Have? 30 Behavioral Approach 57
Classic Concepts in Today’s Workplace 31 Quantitative Approach 58
What Is Management? 32 Contemporary Approaches 59
Endnotes 61
3 WAYS TO LOOK AT WHAT MANAGERS DO 33
4 Functions Approach 33 Chapter 2 The Manager as Decision Maker 62
Management Roles Approach 34 How do Managers Make Decisions? 65
Skills and Competencies 35 What Defines a Decision Problem? 65
What is Relevant in the Decision-Making Process? 66
Is the Manager’s Job Universal? 35
How Does the Decision Maker Weight the Criteria and
Why Study Management? 38
Analyze Alternatives? 66
Making Ethical Decisions in Today’s Workplace 38
What Determines the Best Choice? 68
What Factors Are Reshaping and Redefining What Happens in Decision Implementation? 68
Management? 39
What is the Last Step in the Decision Process? 69
Why Are Customers Important to the Manager’s
What Common Errors Are Committed in the Decision-
Job? 40
Making Process? 69
Managing Technology in Today’s Workplace | Is It Still
Managing When What You’re Managing Are
WHAT ARE THE 3 APPROACHES MANAGERS CAN
Robots? 40
USE TO MAKE DECISIONS? 71
Why Is Innovation Important to the Manager’s Job? 41
Rational Model 71
Importance of Social Media to the Manager’s Job 41
Bounded Rationality 72
Importance of Sustainability to the Manager’s Job 42
Classic Concepts in Today’s Workplace 73
What Employability Skills Are Critical for Getting and
Intuition and Managerial Decision Making 73
Keeping a Job? 42
Managing Technology in Today’s Workplace | Making Better
Wrapping It Up . . . 44
Decisions With Technology 74
Knowing: Getting Ready for Exams and Quizzes
Chapter Summary By Learning Outcome 46 What Types of Decisions and Decision-Making Conditions
• Discussion Questions 47 Do Managers Face? 75
6
Cont ent s 7
How Do Problems Differ? 75 What Does Society Expect from Organizations

How Does a Manager Make Programmed and Managers? 112
Decisions? 75 How Can Organizations Demonstrate Socially Responsible
How Do Nonprogrammed Decisions Differ from Actions? 112
Programmed Decisions? 76 Should Organizations Be Socially Involved? 113
How Are Problems, Types of Decisions, and Organizational What Is Sustainability and Why Is It Important? 114
Level Integrated? 77 Making Ethical Decisions in Today’s Workplace 115
What Decision-Making Conditions Do Managers What Factors Determine Ethical and Unethical
Face? 78 Behavior? 115
How Do Groups Make Decisions? 78 In What Ways Can Ethics Be Viewed? 116
What Are the Advantages and Disadvantages How Can Managers Encourage Ethical Behavior? 116
of Group Decision Making? 79
Managing Technology in Today’s Workplace | The Ethics
When Are Groups Most Effective? 79 of Data Analytics 117
Making Ethical Decisions in Today’s Workplace 80 Knowing: Getting Ready for Exams and Quizzes
How Can You Improve Group Decision Making? 80 Chapter Summary by Learning Outcome 120 • Discussion
What Contemporary Decision-Making Issues Questions 120
Do Managers Face? 81 Applying: Getting Ready for the Workplace
How Does National Culture Affect Managers’ Decision Management Skill Builder | Building High Ethical Standards 121
Making? 81 • Experiential Exercise 122 • Case Application #1—Global
Why Are Creativity and Design Thinking Important Control 123 • Case Application #2—Serious about
in Decision Making? 82 Sustainability? 124 • Case Application #3—Flagrant Foul 125
How is big data changing the way managers make • Endnotes 126
decisions? 84
Knowing: Getting Ready for Exams and Quizzes Part 2 Planning
Chapter Summary by Learning Outcome 86 • Discussion
Questions 87 Chapter 4 The Management Environment 128
Applying: Getting Ready for the Workplace What Is the External Environment and Why
Management Skill Builder | Being A Creative Decision Maker 87 Is It Important? 131
• Experiential Exercise 88 • Case Application #1—Big What Is the Economy Like Today? 131
Brown Numbers 89 • Case Application #2—The Business of Classic Concepts in Today’s Workplace 133
Baseball 90 • Case Application #3—Slicing the Line 91
What Role Do Demographics Play? 134
• Endnotes 92
How Does the External Environment Affect
Managers? 135
Quantitative Module: Quantitative
Managing Technology in Today’s Workplace | Can
Decision-Making Tools 94 Technology Improve the Way Managers
Payoff Matrices 94 Manage? 135
Decision Trees 95 Making Ethical Decisions in Today’s Workplace 137
Break-Even Analysis 96
Linear Programming 97 WHAT IS ORGANIZATIONAL CULTURE? 139
Queuing Theory 99 Dimensions of Organizational Culture 140
Economic Order Quantity Model 99
How Does Organizational Culture
Endnotes 101
Affect Managers? 141
How Does Culture Affect What Employees Do? 141
Chapter 3 Important Managerial Issues 102 How Does Culture Affect What Managers Do? 142
What Is Globalization and How Does It Affect What Are Current Issues in Organizational
Organizations? 105 Culture? 143
What Does It Mean to Be “Global”? 106 Creating a Customer-Responsive Culture 143
How Do Organizations Go Global? 106 Creating an Innovative Culture 143
Creating a Sustainability Culture 144
WHAT ARE THE DIFFERENT TYPES OF GLOBAL
Creating an Ethical Culture 145
ORGANIZATIONS? 108
Creating a Learning Culture 145
What Do Managers Need to Know about Managing in a Knowing: Getting Ready for Exams and Quizzes
Global Organization? 109 Chapter Summary by Learning Outcome 146 • Discussion
Classic Concepts in Today’s Workplace 110 Questions 146
8 C ont ent s
Applying: Getting Ready for the Workplace Is Entrepreneurship Different from Self-Employment? 185
Management Skill Builder | Understanding Culture 147 • Expe- Classic Concepts in Today’s Workplace 186
riential Exercise 148 • Case Application #1—Bad Ride. Bumpy Who’s Starting Entrepreneurial Ventures? 186
Ride. 149 • Case Application #2—Not Sold Out 150 • Case Why Is Entrepreneurship Important? 187
Application #3—Extreme Openness 151 • Endnotes 152
What Do Entrepreneurs Do? 188
Chapter 5 Managing Change and WHAT HAPPENS IN THE ENTREPRENEURIAL

Innovation 154 PROCESS? 189
What Is Change and How Do Managers Exploring the Entrepreneurial Context 189
Deal with It? 157 Identifying Opportunities and Possible Competitive
Why Do Organizations Need to Change? 158 Advantages 189
Who Initiates Organizational Change? 159 Starting the Venture 190
How Does Organizational Change Happen? 159 Managing the Venture HOW? 190
What Social Responsibility and Ethics Issues Face
How Do Managers Manage Resistance to Change? 162
Entrepreneurs? 191
Why Do People Resist Organizational Change? 163
What’s Involved in Planning New Ventures? 192
What Are Some Techniques for Reducing Resistance to
What Initial Efforts Must Entrepreneurs Make? 192
Organizational Change? 163
How Should Entrepreneurs Research the Venture’s
Feasibility? 193
WHAT REACTION DO EMPLOYEES HAVE
TO ORGANIZATIONAL CHANGE? 164 What Planning Do Entrepreneurs Need to Do? 196
What Additional Planning Considerations Do Entrepreneurs
What Is Stress? 164
Need to Address? 197
What Causes Stress? 165
What’s Involved in Organizing an Entrepreneurial
How Can Managers Encourage Innovation Venture? 199
in an Organization? 168 What Are the Legal Forms of Organization
for Entrepreneurial Ventures? 199
How Are Creativity and Innovation Related? 169
What Type of Organizational Structure Should
What’s Involved in Innovation? 169
Entrepreneurial Ventures Use? 199
Managing Technology in Today’s Workplace | Helping
What Human Resource Management Issues Do
Innovation Flourish 170
Entrepreneurs Face? 201
How Can a Manager Foster Innovation? 170 Managing Technology in Today’s Workplace | Startup
How Does Design Thinking Influence Innovation? 172 Ideas: Cashing in on Technology 201
What Is Disruptive Innovation and Why Is Managing it What’s Involved in Leading an Entrepreneurial
So Important? 173 Venture? 202
Making Ethical Decisions in Today’s Workplace 173 What Type of Personality Characteristics Do Entrepreneurs
What Is Disruptive Innovation? 173 Have? 202
Why Is Disruptive Innovation Important? 174 How Can Entrepreneurs Motivate
Employees? 203
What Are the Implications of Disruptive Innovation? 174
How Can Entrepreneurs Be Leaders? 204
Making Ethical Decisions in Today’s Workplace 204
What’s Involved in Controlling an Entrepreneurial
Questions 176
Venture? 205
Applying: Getting Ready for the Workplace
How Is Growth Managed? 205
Management Skill Builder | Stress Management 177
How Are Downturns Managed? 205
• Experiential Exercise 178 • Case Application #1—
Defeating the System 179 • Case Application #2—The What’s Involved with Exiting the Venture? 206
Next Big Thing 180 • Case Application #3—Time to Why Is It Important to Think about Managing Personal
Change? 181 • Endnotes 182 Challenges as an Entrepreneur? 206
Experiential Exercise 208 • Endnotes 209
Entrepreneurship Module: Managing
Entrepreneurial Ventures 184
Chapter 6 Planning and Goal Setting 210
What Is the Context of Entrepreneurship and What Is Planning and Why Do Managers Need to
Why Is It Important 184 Plan? 213
What Is Entrepreneurship? 184 Why Should Managers Formally Plan? 213
Cont ent s 9
What Are Some Criticisms of Formal Planning and How

Should Managers Respond? 214 WHAT CONTINGENCY VARIABLES AFFECT
STRUCTURAL CHOICE? 256
Does Formal Planning Improve Organizational
Performance? 215 Mechanistic or Organic 257
What Do Managers Need to Know about Strategic Strategy → Structure 257
Management? 215 Size → Structure 258
What Is Strategic Management? 216 Technology → Structure 258
Why Is Strategic Management Important? 216 Environment → Structure 258
What Are the Steps in the Strategic Management
Process? 217 Classic Concepts in Today’s Workplace 259
What Are Some Common Organizational
WHAT STRATEGIES DO MANAGERS USE? 219 Designs? 260
Corporate Strategy 219 What Traditional Organizational Designs Can Managers
Competitive Strategy 220 Use? 260
Functional Strategy 220 What Contemporary Organizational Designs Can Managers
Use? 261
What Strategic Weapons Do Managers Have? 221 What Are Today’s Organizational Design
Making Ethical Decisions in Today’s Workplace 223 Challenges? 265
How Do Managers Set Goals and Develop Plans? 224 How Do You Keep Employees Connected? 265
What Types of Goals Do Organizations Have and How Do How Do Global Differences Affect Organizational
They Set Those Goals? 224 Structure? 265
Classic Concepts in Today’s Workplace 226 Making Ethical Decisions in Today’s Workplace 265
What Types of Plans Do Managers Use and How Do They How Do You Build a Learning Organization? 266
Develop Those Plans? 227 How Can Managers Design Efficient and Effective Flexible
What Contemporary Planning Issues Do Managers Work Arrangements? 267
Face? 230 Managing Technology in Today’s Workplace | The
How Can Managers Plan Effectively in Dynamic Changing World of Work 269
Environments and in Crisis Situations? 231 Knowing: Getting Ready for Exams and Quizzes
How Can Managers Use Environmental Chapter Summary by Learning Outcome 271 • Discussion
Scanning? 232 Questions 271
Managing Technology in Today’s Workplace | Using Applying: Getting Ready for the Workplace
Social Media for Environmental Scanning 232 Management Skill Builder | Increasing Your Power 272
Knowing: Getting Ready for Exams and Quizzes • Experiential Exercise 273 • Case Application #1—
Chapter Summary by Learning Outcome 234 • Discussion Turbulence at United Air 274 • Case Application #2—
Questions 234 Lift Off 275 • Case Application #3—A New Kind of
Applying: Getting Ready for the Workplace Structure 276 • Endnotes 277
Management Skill Builder | Being A Good Goal
Setter 235 • Experiential Exercise 236 • Case Chapter 8 Managing Human Resources
Application #1—Fast Fashion 237 • Case Application #2— and Diversity 280
Mapping a New Direction 238 • Case Application #3— What Is the Human Resource Management Process
Using Tech to Sell Pizza 239 • Endnotes 240
and What Influences It? 283
What Is the Legal Environment of HRM? 284
Part 3 Organizing Classic Concepts in Today’s Workplace 286
Chapter 7 Structuring and Designing How Do Managers Identify and Select Competent
Organizations 244 Employees? 287
What Are the Six Key Elements in Organizational Making Ethical Decisions in Today’s Workplace 287
Design? 247 1 What Is Employment Planning? 287
1 What Is Work Specialization? 247 2A How Do Organizations Recruit Employees? 289
2 What Is Departmentalization? 248 2B How Does a Manager Handle Layoffs? 290
3 What Are Authority and Responsibility? 250 3 How Do Managers Select Job Applicants? 290
4 What Is Span of Control? 254 How Are Employees Provided with Needed Skills and
5 How Do Centralization and Decentralization Knowledge? 294
Differ? 255 How Are New Hires Introduced to the
6 What Is Formalization? 255 Organization? 294
10 C ont ents
Managing Technology in Today’s Workplace | Social Chapter 9 Managing Work Groups and Work
and Digital HR 295 Teams 326
What Is Employee Training? 295 What Is a Group and What Stages of Development Do
Groups Go Through? 329
KEEPING GREAT PEOPLE: TWO WAYS What Is a Group? 329
ORGANIZATIONS DO THIS 298
What Are the Stages of Group Development? 329
Performance Management System 298 Making Ethical Decisions in Today’s Workplace 331
Compensating Employees: Pay and Benefits 300
5 MAJOR CONCEPTS OF GROUP
What Contemporary HRM Issues Face Managers? 303
BEHAVIOR 332
How Can Managers Manage Downsizing? 303
1 Roles 332
What Is Sexual Harassment? 304
2a Norms 332
How Are Organizations and Managers Adapting
2b Conformity 333
to a Changing Workforce? 305
3 Status Systems 333
How Can Workforce Diversity and Inclusion
4 Group Size 334
Be Managed? 307
5 Group Cohesiveness 334
What Is Workforce Diversity? 307
What Types of Diversity Are Found in Workplaces? 308
How Does Workforce Diversity and Inclusion Affect
How Are Groups Turned into Effective Teams? 337
HRM? 310
Are Work Groups and Work Teams the Same? 337
What about Inclusion? 311
Knowing: Getting Ready for Exams and Quizzes What Are the Different Types of Work Teams? 338
What Makes a Team Effective? 339
Questions 313 Managing Technology in Today’s Workplace | Keeping
Applying: Getting Ready for the Workplace Connected: IT And Teams 339
How Can a Manager Shape Team Behavior? 343
Management Skill Builder | Providing Good Feedback 313
• Experiential Exercise 314 • Case Application #1—Race What Current Issues Do Managers Face
Relations 315 • Case Application #2—Résumé in Managing Teams? 344
Regrets 316 • Case Application #3—Spotting What’s Involved with Managing Global Teams? 344
Talent 317 • Endnotes 318 When Are Teams Not the Answer? 346
Professionalism Module: Professionalism and Questions 347
Employability 321 Applying: Getting Ready for the Workplace
What is Professionalism? 321 Management Skill Builder | Developing Your Coaching
Skills 348 • Experiential Exercise 349 • Case
How Can I Show My Professionalism? 322
Application #1—Rx: Teamwork 350 • Case Application #2—
How Can I Have a Successful Career? 323 Building Better Software Build Teams 351 • Case
Assess Your Personal Strengths and Weaknesses 323 Application #3—Employees Managing Themselves—Good Idea or
Identify Market Opportunities 323 Not? 352 • Endnotes 353
Take Responsibility for Managing Your Own Career 324
Develop Your Interpersonal Skills 324
Practice Makes Perfect 324 Part 4 Leading
Stay Up to Date 324
Network 324 Chapter 10 Understanding Individual
Stay Visible 324 Behavior 356
Seek a Mentor 324 What Are the Focus and Goals of Organizational
Leverage Your Competitive Advantage 325 Behavior? 359
Don’t Shun Risks 325 What Is the Focus of OB? 359
It’s OK to Change Jobs 325 What Are the Goals of Organizational Behavior? 360
Opportunities, Preparation, and Luck = Success 325 What Role Do Attitudes Play in Job Performance? 361
Endnotes 325 What Are the Three Components of an Attitude? 361
What Attitudes Might Employees Hold? 361
Cont ent s 11
Do Individuals’ Attitudes and Behaviors Need to Be How Do the Contemporary Theories Explain
Consistent? 362 Motivation? 400
What Is Cognitive Dissonance Theory? 362 What Is Goal-Setting Theory? 400
Making Ethical Decisions in Today’s Workplace 363 How Does Job Design Influence Motivation? 401
How Can an Understanding of Attitudes Help Managers Be Classic Concepts in Today’s Workplace 402
More Effective? 364 What Is Equity Theory? 404
What Do Managers Need to Know About Personality? 364 How Does Expectancy Theory Explain Motivation? 405
How Can We Best Describe Personality? 365 How Can We Integrate Contemporary Motivation
Managing Technology in Today’s Workplace | Increased Theories? 406
Reliance on Emotional Intelligence 367 What Current Motivation Issues Do Managers Face? 408
Can Personality Traits Predict Practical Work-Related How Can Managers Motivate Employees When the
Behaviors? 367 Economy Stinks? 408
How Do We Match Personalities and Jobs? 369 How Does Country Culture Affect Motivation Efforts? 408
Do Personality Attributes Differ Across Cultures? 370 How Can Managers Motivate Unique Groups of
How Can an Understanding of Personality Help Managers Workers? 409
Be More Effective? 370 Making Ethical Decisions on Today’s Workplace 410
What Is Perception and What Influences It? 371 How Can Managers Design Appropriate Rewards
What Influences Perception? 371 Programs? 411
How Do Managers Judge Employees? 372 Managing Technology in Today’s Workplace | Individualized
How Can an Understanding of Perception Help Managers Rewards 412
Be More Effective? 374 Knowing: Getting Ready for Exams and Quizzes
HOW DO LEARNING THEORIES EXPLAIN Questions 415
BEHAVIOR? 375 Applying: Getting Ready for the Workplace
Operant conditioning 375 Management Skill Builder | Being a Good Motivator 415
Social learning theory 376 • Experiential Exercise 416 • Case Application #1—One
for the Money . . . 417 • Case Application #2—Unlimited
Shaping Behavior 376
Vacation Time? Really? 418 • Case Application #3—
Classic Concepts in Today’s Workplace 378 Passionate Pursuits 419 • Endnotes 420
What Contemporary OB Issues Face Managers? 378

How Do Generational Differences Affect Chapter 12 Understanding Leadership 424
the Workplace? 378 Who Are Leaders, and What Is Leadership? 427
How Do Managers Deal with Negative Behavior in the Classic Concepts in Today’s Workplace 427
Workplace? 380
Knowing: Getting Ready for Exams and Quizzes WHAT DO EARLY LEADERSHIP THEORIES TELL
Chapter Summary by Learning Outcome 382 • Discussion US ABOUT LEADERSHIP? 428
Questions 383 THE LEADER What Traits Do Leaders Have? 428
Applying: Getting Ready for the Workplace THE BEHAVIORS What Behaviors Do Leaders Exhibit? 430
Management Skill Builder | Understanding Employee University of Iowa 430
Emotions 383 • Experiential Exercise 385 • Case Ohio State 430
Application #1—Alibaba: Motivation for the Long
University of Michigan 430
Haul 385 • Case Application #2 —Putting Customers
Second 386 • Case Application #3—Adobe’s Managerial Grid 430
Advantage 387 • Endnotes 388
What Do the Contingency Theories of Leadership
Tell Us? 431
Chapter 11 Motivating and Rewarding What Was the First Comprehensive Contingency
Employees 392 Model? 431
What Is Motivation? 395 How Do Followers’ Willingness and Ability Influence
Leaders? 432
4 EARLY THEORIES OF MOTIVATION (1950s & How Participative Should a Leader Be? 434
1960s) 396 How Do Leaders Help Followers? 435
1 Maslow’s Hierarchy of Needs Theory 396 What Is Leadership Like Today? 436
2 McGregor’s Theory X and Theory Y 397 What Do the Four Contemporary Views of Leadership
3 Herzberg’s Two-Factor Theory 397 Tell Us? 437
4 McClelland’s Three-Needs Theory 399 Making Ethical Decisions in Today’s Workplace 439
12 C ont ents
What Issues Do Today’s Leaders Face? 440 Applying: Getting Ready for the Workplace
Managing Technology in Today’s Workplace | Virtual Management Skill Builder | Being A Good Listener 479
Leadership 441 • Experiential Exercise 480 • Case Application #1—
Why Is Trust the Essence of Leadership? 443 #AthletesusingTwitter 480 • Case Application #2—Banning
E-Mail. Banning Voice Mail. 481 • Case Application #3—
A Final Thought Regarding Leadership 445
Using Social Media for Workplace Communication 482
Knowing: Getting Ready for Exams and Quizzes • Endnotes 483
Questions 447
Management Skill Builder | Being A Good Leader 447 Part 5 Controlling
• Experiential Exercise 448 • Case Application #1—
“Success Theater” at General Electric 449 • Case Application
Chapter 14 Controlling Work and Organizational
#2—Developing Gen Y Leaders 450 • Case Application Processes 486
#3—Investing in Leadership 451 • Endnotes 452 What Is Control and Why Is It Important? 489
What Is Control? 489
Chapter 13 Managing Organizational and Why Is Control Important? 489
Interpersonal Communication 456 What Takes Place as Managers Control? 491
How Do Managers Communicate Effectively? 459 1 What Is Measuring? 491
How Does the Communication Process Work? 459 Making Ethical Decisions in Today’s Workplace 492
Are Written Communications More Effective Than Verbal Classic Concepts in Today’s Workplace 494
Ones? 461 2 How Do Managers Compare Actual Performance
Is the Grapevine an Effective Way to Communicate? 461 to Planned Goals? 494
How Do Nonverbal Cues Affect Communication? 461 3 What Managerial Action Can Be Taken? 495
Classic Concepts in Today’s Workplace 462 What Should Managers Control? 496
What Barriers Keep Communication from Being When Does Control Take Place? 496
Effective? 462
How Can Managers Overcome Communication
KEEPING TRACK: WHAT GETS CONTROLLED? 498
Barriers? 465
Keeping Track of an Organization’s Finances 498
TECHNOLOGY AND MANAGERIAL Keeping Track of Organization’s Information 499
COMMUNICATION 467 Keeping Track of Employee Performance 500
Networked Communication 467 Keeping Track Using a Balanced Scorecard Approach 501
Mobile Communication 468
What Contemporary Control Issues Do Managers
Managing Technology in Today’s Workplace | Office of Confront? 502
Tomorrow 470 Do Controls Need to Be Adjusted for Cultural
What Communication Issues Do Managers Face Differences? 502
Today? 471 Managing Technology in Today’s Workplace | Monitoring
How Do We Manage Communication in an Internet Employees 503
World? 471 What Challenges Do Managers Face in Controlling the
How Does Knowledge Management Affect Workplace? 503
Communication? 473 Knowing: Getting Ready for Exams and Quizzes
What Role Does Communication Play in Customer Chapter Summary by Learning Outcome 508 • Discussion
Service? 474 Questions 508
How Can We Get Employee Input and Why Should Applying: Getting Ready for the Workplace
We? 474 Management Skill Builder | Disciplining Difficult
Making Ethical Decisions in Today’s Workplace 475 Employees 509 • Experiential Exercise 510 • Case
How Do We Have Civil Conversations in the Application #1—HealthyFast Food? 511 • Case
Workplace? 475 Application #2—If You Can’t Say Something Nice, Don’t Say
Anything at All 512 • Case Application #3—Goals and
How Does Workplace Design Affect
Controls 512 • Endnotes 514
Communication? 476
Why Should Managers Be Concerned with
Communicating Ethically? 477
Operations Module: Managing Operations 516
Chapter Summary by Learning Outcome 478 • Discussion What Do I Need to Know about Operations
Questions 478 Management? 516
Cont ent s 13
What Is Operations Management? 516 What Are the Obstacles to Value Chain Manage-
1 How Do Service and Manufacturing Firms Differ? 517 ment? 524
2 How Do Businesses Improve Productivity? 517 What Contemporary Issues Do Managers Face in
3 What Role Does Operations Management Play in a Managing Operations? 525
Company’s Strategy? 519 1 What Role Does Technology Play in Operations
What Is Value Chain Management and Why Is It Management? 526
Important? 519 2 How Do Managers Control
What Is Value Chain Management? 520 Quality? 526
What Are the Goals of Value Chain Management? 520 3 How Are Projects Managed? 529
How Does Value Chain Management Benefit Final Thoughts on Managing Operations 533
Businesses? 521 Endnotes 533
How Is Value Chain Management Done? 521
What Are the Requirements for Successful Value Chain Glossary 535
Management? 521 Index 542
Preface
This Eleventh Edition of Fundamentals of Management covers the essentials of manage-
ment in a way that provides a sound foundation for understanding the practical issues facing
managers and organizations. The focus on knowing and applying the theories of manage-
ment remains, while now also highlighting opportunities to develop employability skills.
Fundamentals of Management offers an approachable, streamlined, realistic emphasis
around what works for managers and what doesn’t—with the ultimate goal to help students
be successful.
To improve student results, we recommend pairing the text content with MyLab
Management, which is the optional teaching and learning platform that empowers you to
reach every student. By combining trusted author content with digital tools and a flexible
learning platform, MyLab personalizes the learning experience to help your students learn
and retain key course concepts while developing skills that future employers are seeking in
potential employees. Learn more at www.pearson.com/mylab/management.
New to This Edition

• New chapter on entrepreneurship.
• All new Experiential Exercises. Each chapter’s new Experiential Exercise is a hands-on
activity in which students typically collaborate with other students to complete a task,
such as writing a personal mission statement.
• Employability skills highlighted throughout book. Introduced in Chapter 1, these employ-
ability skills include critical thinking, communication, collaboration, knowledge applica-
tion and analysis, and social responsibility. Each chapter is loaded with opportunities for
students to use and work on the skills they’ll need to be successful in the twenty-first-
century workplace.
• Material on early twentieth-century contributors: A diversity perspective. Because man-
agement history is the result of the contributions of many diverse individuals, we added a
section to the Management History Module highlighting some noteworthy contributors.
• Module on professionalism and employability. Expanded version of the module on
Careers now focuses on professionalism and employability.
• Diversity material added to managing human resources chapter.
• Managing operations material presented in a modular format.
• Several new examples throughout, including Facebook’s public scrutiny over what it was
doing and not doing to protect its community of users, BMW’s sustainability actions,
digital currency use in Sweden, European “zombie” companies, Hootsuite’s culture, the
global cashew industry, Fox Sports World Cup advertising challenge, the organizational
redesign at The Wall Street Journal, and many others.
• New and updated content, including current issues in organizational culture, anti-
globalization, stumbling blocks to creativity, revision bias, crisis planning, digital tools as
strategic weapons, managing disruptive innovation, remote work, multicultural brokers,
inclusion, generational differences in the workplace, emotions and communication, alter-
nate reality, toxic bosses, having civil conversations in the workplace, and workplace design.
• Making Ethical Decisions in the Workplace. This element has been renamed, and content
is 60 percent new.
14
Pr eface 15
• Case Applications. 58 percent new.

• New Management in the News in MyLab Management. News articles are posted regularly,
along with discussion questions that help students to understand management issues in cur-
rent events.
Solving Teaching and Learning Challenges

Many students who take a principles of management course have difficulty understanding
why they are taking the course in the first place. They presume that management is common
sense, unambiguous, and dependent on intuition. They also need practice applying the con-
cepts they are learning to real-world situations. Additionally, many students may not aim to
be managers upon graduation, so they may struggle to see the parallels between this course
and their career goals. We wrote Fundamentals of Management to address these challenges by
developing a “management sense” grounded in theory for students while showing them how
to apply concepts learned to real-world situations and enabling them to develop the necessary
skills to be successful in any career.
Developing a “Management Sense”

Bust This Myth and Debunking Chapter Openers
Bust This Myth chapter openers include common myths that
students may have about management. This feature debunks
the common myths, helping students to better understand
and develop their own management sense. Each one is
accompanied by a Bust This Myth Video Exercise in MyLab
Management.
16 Pr efa c e
The Think Like a Manager video series

in MyLab Management shows students
difficult business scenarios and asks
them to respond through multiple choice
question assignable activities.
Apply Concepts to the Real World

The NEW Entrepreneurship Module: Managing Entrepreneurial Ventures, reflects the recent
growth in entrepreneurial ventures, helping students to understand trends happening
in the real world.
Murad Sezer/Reuters
Pr eface 17
Making Ethical Decisions in

Today’s Workplace
CVS Health Corporation announced in early 2018 that it would stop “materially”
altering the beauty images used in its marketing materials that appear in its stores
and on its websites and social media channels.35 Although the change applies to
the marketing materials it creates, the drugstore chain has also asked global brand
partners—including Revlon, L’Oreal, and Johnson & Johnson—to join its effort.
The company will use a watermark—the “CVS Beauty Mark”—on images that
have not been altered. What does that mean? You’re seeing real, not digitally This text tackles tough issues such as
modified, persons. The person featured in those images did not have their size, globalization/anti-globalization, having civil
shape, skin or eye color, wrinkles, or other characteristics enhanced or changed. conversations, anti-bias, and ethical dilemmas—
The company’s goal is for all images in the beauty sections of CVS’s stores to giving students an accurate depiction of the busi-
reflect the “transparency” commitment by 2020. Not surprisingly, there are pros ness environment today.
and cons to this decision. And not surprisingly, there are ethical considerations
associated with the decision.
Discussion Questions:
5 Striving for more realistic beauty/body image ideals: Who are potential
stakeholders in this situation and what stake do they have in this decision?
6 From a generic viewpoint, how do ethical issues affect decision making? In this
specific story, what potential ethical considerations do you see in the decision
by CVS to stop altering beauty images and start using more realistic images?
To help students apply management
3
concepts to the real world, the cases ask
students to assess a situation and answer
questions about “how” and “why” and
CASE APPLICATION #
“what would you do?” These Case Ap- Goals and Controls
plications cover a variety of companies, Topic: Role of goals in controlling, control process, efficiency and effectiveness
including Uber, Netflix, General Elec-
T
esla. Elon Musk. You’ve probably heard of both. Tesla role in the company and oversaw the design of Tesla’s first
tric, Tesla, and more. was founded in 2003 by a group of engineers who car, the Roadster, which was launched in 2008. Next came the
wanted to prove that buyers didn’t need to compromise Model S, introduced in 2012 as the world’s first premium all-
looks and performance to drive electric—that electric cars electric sedan. The next product line expansion was the Model
could be “better, quicker, and more fun to drive than gasoline X in 2015, a sport utility vehicle, which achieved a 5-star safety
cars.”60 Musk was not part of that original group but led the rating from the National Highway Safety Administration. The
company’s Series A investment (the name typically given to a Model 3 was introduced in 2016 and production began in
(Case Application for Chapter 14, company’s first round of venture capital financing) and joined 2017. From the beginning, Musk has maintained that Tesla’s
Tesla) Tesla’s board of directors as chairman. He soon took an active long-term strategic goal was to create affordable mass-market
Experiential Exercise
NEW! Experiential Exercises are all

Now, for a little fun! Organizations (work and educational) often use team-building exercises to help teams improve their performance. In
your assigned group, select two of the characteristics of effective teams listed in Exhibit 10-6 and develop a team-building exercise for each
new. Each one is a hands-on activity in
characteristic. In developing your exercise, focus on helping a group improve that particular characteristic. Be creative! Write a group report
describing your exercises, being sure to explain how your exercises will help a group improve or develop that characteristic. Be prepared to
which students typically collaborate with
share your ideas with your class! OR, be prepared to demonstrate the team-building exercise!
Then, once you’ve concluded the assigned group work, you are to personally evaluate your “group” experience in working on this task.
other students to complete a task.
How did your group work together? What went “right?” What didn’t go “right?” What could your group have done to improve its work perfor-
mance and satisfaction with the group effort?
18 Pr efa c e
Developing Employability Skills

For students to succeed in a rapidly changing job market, they should be aware of their career
options and how to go about developing a variety of skills. With MyLab Management and
Fundamentals of Management, we focus on developing these skills in the following ways:
A new Employability Skills Matrix at the end of Chapter 1 provides students with a visual guide
to features that support the development of skills employers are looking for in today’s business
graduates, helping students to see from
the start of the semester the relevance of EMPLOYABILITY SKILLS MATRIX
the course to their career goals. Critical Thinking Communication Collaboration Knowledge Social
Application and Responsibility
Analysis
Classic Concepts in Today’s ✓ ✓ ✓ ✓
Workplace
Making Ethical Decisions in ✓ ✓ ✓ ✓ ✓
Today’s Workplace
Managing Technology in ✓ ✓ ✓ ✓ ✓
Today’s Workplace
MyLab: Write It, Watch It, ✓ ✓ ✓
Try It
Management Skill Builder— ✓ ✓ ✓
Practicing the Skill
Experiential ✓ ✓ ✓
Exercise
Case ✓ ✓ ✓
Application 1
Case ✓ ✓ ✓
Application 2
Case ✓ ✓
[Employability Skills Matrix from
Application 3
Chapter 1]
Boxed Features Highlight Opportunities to Develop Key Employability Skills.
Classic Concepts in Today’s Workplace help students to un-

derstand a classic management concept. Hofstede’s five di-
mensions of national culture, are still beneficial to managers
in today’s workplaces.
◂ ◂ ◂ Classic Concepts in Today’s Workplace ▸ ▸ ▸

value relationships and show sensitivity and concern for
Hofstede’s 5 Dimensions the welfare of others.
• Uncertainty avoidance. This dimension assesses the
degree to which people in a country prefer structured
An illuminating study of the differences in cultural environ-
over unstructured situations and whether people are will-
ments was conducted by Geert Hofstede in the 1970s and
ing to take risks.
1980s.11 He surveyed more than 116,000 IBM employees in
40 countries about their work-related values and found that • Long-term versus short-term orientation. People in
managers and employees vary on five dimensions of national cultures with long-term orientations look to the future and
culture: value thrift and persistence. A short-
term orientation values the past and
• Power distance. The degree to Here’s one way present and emphasizes respect for
which people in a country accept
that power in institutions and orga- to UNDERSTAND tradition and fulfilling social obligations.
The following table shows a few
nizations is distributed unequally.
It ranges from relatively equal (low
CULTURAL highlights of four of Hofstede’s cul-
tural dimensions and how different
power distance) to extremely un-
equal (high power distance).
DIFFERENCES! countries rank on those dimensions.
Pr eface 19
Making Ethical Decisions in Today’s Workplace

Making Ethical Decisions in presents students with an ethical dilemma and
encourages them to practice their skills in ethical
decision making and critical decision making.
Walt Disney Company. Star Wars. Two powerful forces combined.

But is that force for good or for not-so-good?30 It’s not surprising
that the popularity of the Star Wars franchise has given Walt Disney
Co. exceptional power over the nation’s movie theaters. The theater
owners want the Star Wars releases, and there’s only one way to get
them...through Disney. With the latest release, movie theaters had to
agree to “top-secret” terms that many theater owners said were the
most oppressive and demanding they had ever seen. Not only were
they required to give Disney about 65 percent of ticket revenue, there
were also requirements about when, where, and how the movie
could be shown. You’d think that because Disney needs the theaters
to show their movies they might be better off viewing them as “part-
ners” rather than subordinates. What do you think?
Discussion Questions:
5 Is there an ethical issue here? Why or why not? What stakeholders
might be affected and how might they be affected? How can identifying
stakeholders help a manager decide the most responsible approach?
6 Working together in your “assigned” group, discuss Disney’s actions.
Do you agree with those actions? Look at the pros and cons, includ-
ing how the various stakeholders are affected. Prepare a list of argu-
ments both pro and con. (To be a good problem solver and critical
thinker, you have to learn how to look at issues from all angles!)
::::::: Managing Technology in Today’s Workplace :::::::

MONITORING EMPLOYEES
Technological advances have made the process of managing an Just how much control a company should have over the private
organization much easier.30 And technological advancements have lives of its employees also becomes an issue. Where should an
also provided employers a means of sophisticated employee moni- employer’s rules and controls end? Does the boss have the right to
toring. Although most of this monitoring is designed to enhance dictate what you do on your free time and in your own home? Could
worker productivity, it could, and has been, a source of concern over your boss keep you from engaging in riding a motorcycle, skydiving,
worker privacy. These advantages bring with them difficult ques- smoking, drinking alcohol, or eating junk food? Again, the answers
tions regarding what managers have the right to know about em- may surprise you. Today many organizations, in their quest to control
ployees and how far they can go in controlling employee behavior, safety and health insurance costs, are delving into their employees’
both on and off the job. Consider the following: private lives.
• The mayor of Colorado Springs, Colorado, reads the e-mail mes- Although controlling employees’ behaviors on and off the
sages that city council members send to each other from their job may appear unjust or unfair, nothing in our legal system
homes. He defended his actions by saying he was making sure prevents employers from engaging in these practices. Rather,
that e-mails to each other were not being used to circumvent the the law is based on the premise that if employees don’t like the
state’s “open meeting” law that requires most council business rules, they have the option of quitting. Managers, too, typically
to be conducted publicly.
defend their actions in terms of ensuring quality productivity
Managing Technology in Today’s Workplace describes how

managers are using technology to monitor employee performance,
looking at ways to have a more efficient and effective workplace.
20 Pr efa c e
Personal Inventory Assessments is a

collection of online exercises designed
to promote self-reflection and engage-
ment in students, helping them better un-
derstand management concepts. These
assessments help develop professional-
ism and awareness of oneself and others,
skills necessary for future career success.
End-of-Chapter Management Skill Builder helps students move from merely knowing
concepts to actually being able to use that knowledge.
The skill-building exercises included at the end of each chapter help you apply and
use management concepts. We chose these skills because of their relevance to develop-
ing management competence and their
linkage to one or more of the topic ar- Management Skill Builder | UNDERSTANDING CULTURE
eas in this book.
An organization’s culture is a system of shared meaning. When you understand your organization’s culture, you know, for example,
whether it encourages teamwork, rewards innovation, or stifles initiative. When interviewing for a job, the more accurate you are at
assessing the culture, the more likely you are to find a good person–organization fit. And once inside an organization, understand-
ing the culture allows you to know what behaviors are likely to be rewarded and which are likely to be punished.48
Expanded Module on Professionalism and Employability

In this newly expanded module, students are provided with very practical information in
terms of being professional and employable. It’s good to remind students that there is a future
beyond getting their degree. But they must prepare themselves for it, with solid academic
learning and practical advice.
Chapter by Chapter Changes

In addition to all these major changes, here is a chapter-by-chapter list of the topic additions
and changes in the Eleventh Edition:
Chapter 1 History Module

• Rewrote box feature questions to focus on skills • Added new section on Other Early Twentieth-Century
• New Making Ethical Decisions box Contributors: A Diversity Perspective
• Added material on employability skills, including Employ-
ability Skills Matrix
• New Experiential Exercise Chapter 2
• Two new cases (Walmart’s management training, Intel’s • Rewrote box feature questions to focus on skills
“chip” problem) • Added “revision bias” to section on Common Errors
• Updated one case (Zappo’s holacracy) • New Being Ethical box
• Added “Topic” to Case Apps • Added information on stumbling blocks to creativity
• Highlighted different employability skill in each case • New Experiential Exercise
Pr eface 21
• One new case (Panera Bread Company) Chapter 7

• Updated two cases (UPS, Baseball Data Analytics)
• Rewrote box feature questions to focus on skills
• Added “Topic” to Case Apps
• New Being Ethical box
• Highlighted different employability skills in each case
• Added new material on remote work
Quantitative Decision-Making Tools Module • New Experiential Exercise
• One new case (United Air)
Chapter 3 • Updated two cases (NASA, PfizerWorks)
• New opening Myth/Debunked
• New Being Ethical box
• Added new information about anti-globalization Chapter 8
• New Experiential Exercise • New opening Myth/Debunked
• Two new cases (Chinese battery companies, NCAA basket- • New examples
ball scandal) • Rewrote box feature questions to focus on skills
• Updated one case (Keurig) • New Being Ethical box
• Added “Topic” to Case Apps • Added additional material on sexual harassment
• Highlighted different employability skill in each case • Moved diversity material to this chapter
• Added discussion on inclusion
Chapter 4 • New Experiential Exercise
• Rewrote box feature questions to focus on skills • One new case (Starbucks and racial-bias training)
• New Being Ethical box • Updated two cases (résumé discrepancies, attracting
• Added new section on Current Issues in Organizational tech talent)
Culture • Added “Topic” to Case Apps
• New Experiential Exercise • Highlighted different employability skills in each case
• Two new cases (Uber, full pay transparency)
• Updated one case (movie theatre industry) Professionalism and Employability Module
• New material on professionalism and employability
• Highlighted different employability
• Revised material on careers
skill in each case
Chapter 5 Chapter 9
• Rewrote box feature questions to focus on skills • Rewrote box feature questions to focus on skills
• Added new section on managing disruptive innovation • Added material on multicultural brokers
• New Being Ethical box • New Experiential Exercise
• New Experiential Exercise • Two new cases (Microsoft and W. L. Gore)
• Updated one case (UnderArmour) • Updated case (health-care industry)
• Two new cases (Volkswagen, Swiss watch industry) • Added “Topic” to Case Apps
• Added “Topic” to Case Apps • Highlighted different employability skills in each case
Chapter 10
Managing Entrepreneurial Ventures Module
• New Module • Expanded discussion of generational
differences in the workplace
Chapter 6 • New Experiential Exercise
• Rewrote box feature questions to focus on skills • Two new cases (Virgin Group, Adobe Systems)
• Added new material on digital tools as strategic weapons • Updated case (Google)
• Added new material on crisis planning • Added “Topic” to Case Apps
• New Managing Technology in Today’s Workplace box • Highlighted different employability skills in each case
(using social media for environmental scanning)
• New Experiential Exercise
• Updated one case (Zara) Chapter 11
• Two new cases (Ford Motor Company, Domino’s Pizza) • Rewrote box feature questions to focus on skills
• Added “Topic” to Case Apps • New Experiential Exercise
• Highlighted different employability • One new case (unlimited vacation time)
skills in each case • Two updated cases (Gravity Payments, Patagonia)
22 Pr efa c e
• Added “Topic” to Case Apps • New material on workplace design

• Highlighted different employability skills in each case • New Experiential Exercise
• One new case (anytime feedback)
• Two updated cases (athletes and Twitter and eliminating
Chapter 12 e-mail)
• Rewrote box feature questions to focus on skills • Added “Topic” to Case Apps
• New Being Ethical box • Highlighted different employability skills in each case
• New material on toxic bosses
• New Experiential Exercise
• Two new cases (General Electric, L’Oreal)
Chapter 14
• One updated case (developing Gen Y leaders) • Rewrote box feature questions to focus on skills
• Added “Topic” to Case Apps • New Being Ethical box
• Highlighted different employability skills in each case • New Experiential Exercise
• Two new cases (Chipotle, Tesla)
• One updated case (positive feedback)
Chapter 13 • Added “Topic” to Case Apps
• Rewrote box feature questions to focus on skills • Highlighted different employability
• New material added to discussion of emotions and skills in each case
communication
• Reworked visual spread
• Added discussion of alternate reality (AR) Managing Operations Module
• New material on having civil conversations in the workplace • New presentation of material as a module
Instructor Teaching Resources

This program comes with the following teaching resources.
Supplements available to instructors

at www.pearsonglobaleditions.com Features of the Supplement
Instructor’s Resource Manual • Chapter-by-chapter summaries
authored by Veronica Horton • Chapter Outlines with teaching tips
• Answers to Case Application discussion questions
• Solutions to all questions and exercises in the book
Test Bank Over 2,500 multiple-choice, true/false, and essay questions with answers and these annotations:
authored by Carol Heeter • Learning Objective
• AACSB learning standard (Written and Oral Communication; Ethical Understanding and Reasoning;
Analytical Thinking; Information Technology; Interpersonal Relations and Teamwork; Diverse and
Multicultural Work Environments; Reflective Thinking; Application of Knowledge)
• Difficulty level (Easy, Moderate, Challenging)
• Question Category (Critical Thinking, Concept, Application, Analytical, or Synthesis)
TestGen® Computerized Test Bank TestGen allows instructors to:
• Customize, save, and generate classroom tests
• Edit, add, or delete questions from the Test Bank
• Analyze test results
• Organize a database of tests and student results
PowerPoint Presentation Presents basic outlines and key points from each chapter. Slides meet accessibility standards for students
authored by Veronica Horton with disabilities. Features include, but not limited to:
• Keyboard and Screen Reader access
• Alternative text for images
• High-color contrast between background and foreground colors
Pr eface 23
Acknowledgments
Writing and publishing a textbook requires the talents of a number of people whose names
never appear on the cover. We’d like to recognize and thank a phenomenal team of talented
people who provided their skills and abilities in making this book a reality. This team
includes Kris Ellis-Levy, our specialist portfolio manager; Claudia Fernandes, our senior
content producer; Carlie Marvel, our senior product marketer, Nicole Price, our field mar-
keting manager; Stephanie Wall, our director of portfolio management; Nancy Moudry, our
highly talented and gifted photo researcher; Lauren Cook, our talented digital media whiz
who co-created the “Bust The Myth” videos; and Kristin Jobe, associate managing editor,
Integra-Chicago.
We also want to thank our reviewers—past and present—for the insights they have
provided us:
David Adams, Manhattanville College Edward A. Johnson, University of North Florida

Lorraine P. Anderson, Marshall University Kayvan Miri Lavassani, North Carolina Central
Maria Aria, Camden Community College Kim Lukaszewski, SUNY New Paltz
Marcia Marie Bear, University of Tampa Brian Maruffi, Fordham University
Barbara Ann Boyington, Brookdale Community College Mantha Vlahos Mehallis, Florida Atlantic University
Reginald Bruce, University of Louisville Christine Miller, Tennessee Technological University
Jon Bryan, Bridgewater State University Diane Minger, Cedar Valley College
Elena Capella, University of San Francisco Kimberly K. Montney, Kellogg Community College
James Carlson, Manatee Community College James H. Moore, Arizona State University
Pam Carstens, Coe College Clara Munson, Albertus Magnus College
Casey Cegielski, Auburn University Jane Murtaugh, College of DuPage
Michael Cicero, Highline Community College Francine Newth, Providence College
Evelyn Delanee, Daytona Beach Community College Leroy Plumlee, Western Washington University
Kathleen DeNisco, Erie Community College, South Campus Pollis Robertson, Kellogg Community College
Jack Dilbeck, Ivy Tech State College Cynthia Ruszkowski, Illinois State University
Fred J. Dorn, University of Mississippi Thomas J. Shaughnessy, Illinois Central College
Michael Drafke, College of DuPage Andrea Smith-Hunter, Siena College
Myra Ellen Edelstein, Salve Regina University Martha Spears, Winthrop University
Deborah Gilliard, Metropolitan State College, Denver Jeff Stauffer, Ventura College
Robert Girling, Sonoma State University Kenneth R. Tillery, Middle Tennessee State University
Patricia Green, Nassau Community College Robert Trumble, Virginia Commonwealth University
Gary Greene, Manatee Community College, Venice Campus Philip Varca, University of Wyoming
Kenneth Gross, The University of Oklahoma Margaret Viets, University of Vermont
Jamey Halleck, Marshall University Brad Ward, Kellogg Community College
Aaron Hines, SUNY New Paltz Lucia Worthington, University of Maryland University College
Robyn Hulsart, Austin Peavy State University Seokhwa Yun, Montclair State University
Todd E. Jamison, Chadron State College
Thank You!
Steve, Mary, and Dave would like to thank you for considering and choosing our book for your
management course. All of us have several years of teaching under our belt, and we know how
challenging yet rewarding it can be. Our goal is to provide you with the best resources avail-
able to help you excel in the classroom!
For their contribution to the Global Edition, Pearson would like to thank Hussein Ismail,
Lebanese American University; Stephanie Pougnet, University of Applied Sciences Western
Switzerland; and Andrew Richardson, University of Leeds; and for their review of the new
content, David Ahlstrom, Chinese University of Hong Kong; Elsa Chan, City University of
Hong Kong; Tan Wei Lian, Taylor’s University; Goh See Kwong, Taylor’s University; and
Yanfeng Zheng, The University of Hong Kong.
About the Authors
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 inter-
personal 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 10 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, and Europe.
For more details, see stephenprobbins.com.
MARY COULTER (Ph.D., University of Arkansas) 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 Fundamentals of
Management, Dr. Coulter has published other books with Pearson including
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!
24
About t he Aut hor s 25
DAVID A. DECENZO (Ph.D., West Virginia University) is president

of Coastal Carolina University in Conway, South Carolina. He
has been at Coastal since 2002 when he took over leadership
of the E. Craig Wall Sr. College of Business. As president,
Dr. DeCenzo has implemented a comprehensive strategic
planning process, ensured fiscal accountability through pol-
icy and practice, and promoted assessment and transparency
throughout the university. Before joining the Coastal faculty
in 2002, he served as director of partnership development in
the College of Business and Economics at Towson University
in Maryland. He is an experienced industry consultant, corpo-
rate trainer, public speaker, and board member. Dr. DeCenzo
is the author of numerous textbooks that are used widely at col-
leges and universities throughout the United States and the world.
Dr. DeCenzo and his wife, Terri, have four children: Mark, Meredith,
Gabriella, and Natalie, and reside in Pawleys Island, South Carolina.
Managing Today
ent
agem
Man
h
Myt
Myt
h Only those who
want to be managers
need to take a
course in management.
Rido/Shutterstock
ent
g e m
a
Man
h
Myt
Anyone who works

in an organization
—not just managers—
can gain insight into how
organizations work and
the behaviors of their
boss and coworkers by
taking a course in management.
27
ASSUME
for a moment that common sense. Well, we can assure you . . .
it’s your first day it’s not! When it comes to managing, much
in an introductory of what passes for common sense is just
physics class. Your instructor asks you to take plain misguided or even wrong. You might be
out a piece of paper and “describe Newton’s surprised to know that the academic study
second law of motion.” How would you react? of management is filled with insights, based
We think that you, like most students, would on extensive research, which often run coun-
respond with something like “How would I ter to what seems to be common sense.
know? That’s why I’m taking this course!” That’s why we decided to tackle head-on
Now let’s change the situation to the first this common-sense perception by opening
day in an introductory management class. each chapter with a particular “management
Your instructor asks you to write an answer myth” and then “debunking” this myth by ex-
to the question: “What traits does one need plaining how it is just a common-sense myth.
to be an effective leader?” When we’ve done Take a minute to re-look at this chap-
this on the first day, we find that students ter’s “management myth” and “management
always have an answer. Everyone seems to myth debunked.” This “debunked” myth often
think they know what makes a good leader. surprises students majoring in subjects like
This example illustrates a popular myth accounting, finance, statistics, information
about the study of management: It’s just technology, or advertising. Since they don’t
Learning Outcomes
1-1 Tell who managers are and where they work. p. 29
1-2 Define management. p. 32
1-3 Describe what managers do. p. 33
1-4 Explain why it’s important to study management. p. 38
1-5 Describe the factors that are reshaping and redefining management. p. 39
1-6 Describe the key employability skills gained from studying management that are
applicable to your future career, regardless of your major. p. 42
28
CHAPTER 1 • Managing Today 29
expect to be managers, they see spending a semester studying management as a

waste of time and irrelevant to their career goals. Later in this chapter, we’ll ex-
plain why the study of management is valuable to every student, no matter what
you’re majoring in or whether you are a manager or aspire to be a manager. •
Although we’d like to think that all managers are good at what they do, you may have dis-
covered through jobs you’ve had that managers can be good at what they do or maybe not so
good, or even good one day and not so good the next! One thing you need to understand is
that all managers—good or not so good—have important jobs to do. And this book is about
the work managers do. In this chapter, we introduce you to managers and management: who
they are, where they work, what management is, what they do, and why you should spend
your time studying management, including how you can develop important employability
skills. Finally, we’ll wrap up the chapter by looking at some key factors reshaping and rede-
fining organizations and the way managers manage.
Who Are Managers and Where Do They Work?

There’s no prototype or standard criteria as to who can be
1-1 Tell who managers
are and where they
a manager. Managers today can be under age 18 or over
age 80. They may be women as well as men, and they
work. can be found in all industries and in all countries. They
manage entrepreneurial businesses, large corporations,
government agencies, hospitals, museums, schools, and
not-for-profit enterprises. Some hold top-level management jobs while others are supervisors
or team leaders. However, all managers share one common element: They work in an orga-
nizational setting. An organization is a deliberate collection of people brought together to
accomplish some specific purpose. For instance, your college or university is an organization,
as are the United Way, your neighborhood convenience store, the New Orleans Saints football
team, fraternities and sororities, the Cleveland Clinic, and global companies such as Alibaba
Group, Lego, and Starbucks. These and all organizations share three common characteristics.
(See Exhibit 1–1.)
What Three Characteristics Do All Organizations Share?

The first characteristic of an organization is that it has a distinct purpose, which is
typically expressed as a goal or set of goals. For example, Mark Zuckerberg, CEO of
Facebook, facing increased public scrutiny over things his company was doing and not
doing in relation to protecting its community of users and the global community at large, organization
stated that his company’s goal was to fix those important issues and to get back to its orig- A deliberate collection of people brought together
1 to accomplish some specific purpose
inal purpose—providing meaningful interactions between family and friends. The second
Exhibit 1–1 Three Characteristics of Organizations
Goals People Structure
A
30 Pa r t 1 • Introduction
characteristic is that people in an organization work to achieve those goals. How? By

nonmanagerial employees
People who work directly on a job or task and have making decisions and engaging in work activities to make the desired goal(s) a reality. For
no responsibility for overseeing the work of others instance, at Facebook, many employees work to create the programming and algorithms
that are crucial to the company’s business. Others provide supporting services by moni-
managers
Individuals in an organization who direct and over- toring content or addressing user problems. Finally, the third characteristic is that an or-
see the activities of others ganization is structured in some way that defines and limits the behavior of its members.
Facebook, like most large organizations, has a structure with different businesses, depart-
top managers
Individuals who are responsible for making deci- ments, and functional areas. Within that structure, rules, regulations, and policies might
sions about the direction of the organization and guide what people can or cannot do; some members will supervise other members; work
establishing policies that affect all organizational teams might be formed or disbanded; or job descriptions might be created or changed so
members
organizational members know what they’re supposed to do. That structure is the setting
middle managers within which managers manage.
Individuals who are typically responsible for trans-
lating goals set by top managers into specific de-
tails that lower-level managers will see get done How Are Managers Different from Nonmanagerial Employees?
first-line managers Although managers work in organizations, not everyone who works in an organization is
Supervisors responsible for directing the day-to- a manager. For simplicity’s sake, we’ll divide organizational members into two categories:
day activities of nonmanagerial employees and/
nonmanagerial employees and managers. Nonmanagerial employees are people who work
or team leaders
directly on a job or task and have no responsibility for overseeing the work of others. The em-
ployees who ring up your sale at Home Depot, take your order at the Starbucks drive-through,
or process your class registration forms are all nonmanagerial employees. These nonmanage-
rial employees may be called associates, team members, contributors, or even employee part-
ners. Managers, on the other hand, are individuals in an organization who direct and oversee
the activities of other people in the organization so organizational goals can be accomplished.
A manager’s job isn’t about personal achievement—it’s about helping others do their work.
That may mean coordinating the work of a departmental group, leading an entire organiza-
tion, or 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
contract employees or individuals who work for the organization’s suppliers. This distinction
doesn’t mean, however, that managers don’t ever work directly on tasks. Some managers do
have work duties not directly related to overseeing the activities of others. For example, an
insurance claims supervisor might process claims in addition to coordinating the work activi-
ties of other claims employees.
What Titles Do Managers Have?

Although they can have a variety of titles, identifying exactly who the managers are in an or-
ganization shouldn’t be difficult. In a broad sense, managers can be classified as top, middle,
first-line, or team leaders. (See Exhibit 1–2.) Top managers are those at or
near the top of an organization. They’re usually responsible for making
Aditi Banga is an associate product manager decisions about the direction of the organization and defining poli-
at Pocket Gems, a firm in San Francisco
that makes and publishes mobile games
cies and values that affect all organizational members. Top managers
such as Pet Tap Hotel and Paradise Cove. typically have titles such as vice president, president, chancellor,
Collaborating with multiple teams of engi- managing director, chief operating officer (COO), chief executive
neers and designers, she manages games
from initial concept through development to
officer (CEO), or chairperson of the board. Middle managers are
product launch. those managers found between the lowest and top levels of the
organization. These individuals often manage other manag-
ers and maybe some nonmanagerial employees and are
typically responsible for translating the goals set by top
managers into specific details that lower-level managers
will see get done. Middle managers may have such titles
as department or agency head, project leader, unit chief,
district manager, division manager, or store manager.
First-line managers are those individuals respon-
sible for directing the day-to-day activities of
nonmanagerial employees and/or team leaders.
First-line managers are often called supervisors,
Stephen Lam/Reuters
Exhibit 1–2 Management Levels team leaders

Individuals who are responsible for leading and
facilitating the activities of a work team
scientific management
Top The use of scientific methods to define the “one
Managers best way” for a job to be done
Middle
Managers
First-Line
Managers
Team Leaders
shift managers, office managers, department managers, or unit coordinators. We want to point
out a special type of manager that has become more common as organizations use employee
work teams. Team leaders are individuals who are responsible for leading and facilitating the
activities of a work team.
◂◂◂ Classic Concepts in Today’s Workplace ▸ ▸ ▸

The terms management and manager are actually centuries • The result was worker output only about one-third of
2
old. One source says that the word manager originated in what was possible.
1588 to describe one who manages. The specific use of the • Taylor’s remedy? Apply scientific management to these
word as a person who oversees a business or public organi- manual shop-floor jobs.
zation is believed to have originated in the early part of the
• The result was phenomenal increases in worker output
18th century. However, used in the way we’re defining it in
and efficiency—in the range of 200 percent or more!
terms of overseeing and directing organizational members,
management and manager are more appropriate to the • Because of his work, Taylor is known as the “father” of
early-twentieth-century time period. The word management scientific management.
was first popularized by Frederick Winslow Taylor. Taylor is a Want to try your hand at using scientific management
“biggie” in management history, so principles to be more efficient?
let’s look at his contributions to how Choose a task you do regularly
management is practiced today. Management: such as laundry, grocery shopping,
studying for exams, cooking din-
• In 1911, Taylor’s book, Principles of
Scientific Management, took the
Finding one best ner, etc. Analyze that task by writ-
business world by storm—his ideas
spread in the United States and to
way to do a job? ing down the steps involved in
completing it. What activities could
be combined or eliminated? Find
other countries and inspired others.
the “one best way” to do this task. See if you can be-
• Why? His theory of scientific management: the use of come more efficient—keeping in mind that changing
scientific methods to define the “one best way” for a job habits isn’t easy to do.
to be done.
• Taylor, a mechanical engineer in Pennsylvania steel com- Discussion Questions:
panies, observed workers and was continually shocked 1 Are Taylor’s views still relevant to how management is
by how inefficient they were: practiced today? Why or why not?
— Employees used vastly different techniques to do the 2 You lead a team of shelf stockers at a local health foods
same job and often “took it easy” on the job. store. You’ve been asked by your store manager to find
— Few, if any, work standards existed. a way to make your work team more efficient. Using
— Workers were placed in jobs with little or no concern Taylor’s scientific management principles, write a list of
for matching their abilities and aptitudes with the possible ideas to share with your manager.
tasks they were required to do.
What Is Management?
Simply speaking, management is what managers do.
1-2 Define management. But that simple statement doesn’t tell us much. A better
explanation is that management is the process of getting
things done, effectively and efficiently, with and through
other people. We need to look closer at some key words
in this definition.
A process refers to a set of ongoing and interrelated activities. In our definition of man-
agement, it refers to the primary activities or functions that managers perform—functions
that we’ll discuss in more detail in the next section.
Talk about an interesting way to be efficient!

ROWE—or results-only work environment—was a radical experiment tried at Best Buy head-
quarters. In this flexible work program, employees were judged only on tasks completed or
results, not on how many hours they spent at work. Employees couldn’t say whether they
worked fewer hours because they stopped counting, BUT employee productivity jumped
3
41 percent!
Do you order stuff from Amazon? A lot of people obviously do because Amazon
ships out millions of packages every day. It’s currently looking at innovative ways to
4
send more items with less cardboard. Why? To be more efficient and effective and to
satisfy younger consumers who are passionate about minimizing environmental impact.
Efficiency and effectiveness have to do with the work being done and how it’s being done.
Efficiency means doing a task correctly (“doing things right”) and getting the most output
from the least amount of inputs. Because managers deal with scarce inputs—including
management resources such as people, money, and equipment—they’re concerned with the efficient use
The process of getting things done, effectively and of those resources. Managers everywhere, much like those at Amazon, want to minimize
efficiently, through and with other people
resource usage and costs.
efficiency It’s not enough, however, just to be efficient. Managers are also concerned with
Doing things right, or getting the most output from completing important work activities. In management terms, we call this effectiveness.
the least amount of inputs
Effectiveness means “doing the right things” by doing those work tasks that help the orga-
effectiveness nization reach its goals. Whereas efficiency is concerned with the means of getting things
Doing the right things, or completing work activi- done, effectiveness is concerned with the ends, or attainment of organizational goals. (See
ties so that organizational goals are attained
Exhibit 1–3.)
Exhibit 1–3 Efficiency A quick overview of managers and efficiency & effectiveness
and Effectiveness
# The concepts are different, but related, because both are focused on how organiza-
Means Ends
Efficiency Effectiveness tional work gets done.
R G # It’s easier to be effective if you ignore efficiency.
E O
S A # Poor managers often allow
L
O
U
—both inefficiency and ineffectiveness OR effectiveness achieved without re-
R Low Goals High A gard for efficiency.
C waste attainment T
E T # Good managers are concerned with
A
U I —both attaining goals (effectiveness) and doing so as efficiently as possible.
S N
A M
G E
E N
T
3 Ways to Look at
What Managers Do
1-3 Describe what managers do.
ORGANIZATIONS ARE NOT ALIKE, and neither are managers’ jobs. But
their jobs do share some common elements, as you’ll see in these three
1
approaches to describing what managers do.
4 Functions Approach Exhibit 1–4 Four Management Functions

NINGning goal
AN fi s,
PL ludes de strategy
• Says that managers perform certain activities, tasks, or functions Inc blishing
a
est loping plans to
, and
eve te activities
d
as they direct and oversee others’ work. coo
rdina
OR es
Inc e, w uped, who reports e tas e
• WHAT Fayol said managers do: First person to identify five common
do e gr
lud ho is t
GA determining what tasks are
to
n
COcludes mg it with goals, ance,
an
b
nt
NIZ
dw
activities managers engage in: plan, organize, command,
fica
NT onitoring perform
o
ho w
ING
g any signi
5
coordinate, and control (POCCC). Achieving the
o do them, how
ill make decisi
organization's
• Today, the management functions have been condensed to four: ING stated purpose
co correctin
an iations
ROLL
arin
planning, organizing, leading, and controlling.
ons om re
v
to w ks
t
e
mp
h
d
d
to
• See Exhibit 1–4 for what managers do when they P-O-L-C.
In
b
,
a
LEA DIN G s,
In c ee
l oy
d ir u d e s m o t i v a ti n g e m p l r s ,
e ct e
sel in g t o t h m u - ts
e h e a c ti viti e s o f m ic
n ic c t in g t h e e co nfl
a ti o most effectiv ng co
n ch i
a n n e l, a n d r e s o l v
PO C C C PO L C Jacques Boyer/Roger-
Violiet/The Image
THEN
NOW
plan organize command coordinate control planning organizing leading controlling Works
Who: Henri Fayol—an engineer/executive at a

Violiet/The Image Works
Jacques Boyer/Roger-
large French mining company

When: Early 1900s
How: Personal experience and observations
planning organizing leading controlling

Defining goals, establishing strategy, and Determining what needs to be done, how it Directing and coordinating the work Monitoring activities to ensure that they
developing plans to coordinate activities will be done, and who is to do it activities of an organization’s people are accomplished as planned
33
2 Management Roles Approach
• Says that managers engage in certain Exhibit 1–5 Mintzberg’s Managerial Roles
“roles” as they manage others.
R PERSONAL ROL
• WHAT Mintzberg said managers do: TE ES
He identified and defined manage-
IN
Leader
rial roles—specific categories of
Figurehead Liaison
managerial actions or behaviors ex-
pected of a manager. (Not sure what a
“role” is? Think of the different roles
ROLES
Entrepreneur Monitor
you play—such as student, employee, Mintzberg’s
DECISIO
volunteer, bowling team member, boy- Managerial
Disturbance Roles
friend/girlfriend, sibling, and so forth—
NA L
Handler
and the different things you’re expected Disseminator
IO
to do in those roles.) Resource
NA
AT
Allocator
L
• Exhibit 1–5 shows Mintzberg’s 10 sepa-
RM
Negotiator Spokesperson
RO
rate, but interrelated roles. LE
O
S F
IN
Source: Based on Mintzberg, Henry, The Nature of Managerial Work,
Christinne Muschi/Toronto Star/
Who: Henry Mintzberg 1st edition, © 1973. Harper & Row.
When: late 1960s

How: Empirical study
Getty Images
of five chief executives

6
at work.
Which Approach—Functions or Roles—Is Better at Defining

What Managers Do?
— Both approaches appear to do a good job of describing what managers do.
— However, the functions approach stands out! It continues to be popular due to its clarity and sim-
plicity.7 But, don’t disregard the roles approach; it offers another way to understand and appreci-
ate what managers do.
managerial roles interpersonal roles decisional roles informational roles

Specific categories of managerial behavior; Involving people (subordinates and persons out- Entailing making decisions or choices Involving collecting, receiving, and
often grouped around interpersonal relationships, side the organization) and other duties that are disseminating information
information transfer, and decision making ceremonial and symbolic in nature
34
3 v
Skills and Competencies
Source: Simon/Fotolia
• Says that managers need certain skills and competencies as they manage others.
• WHAT these researchers say managers do: Identified four general management skills including:8
Analyze and diagnose
— CONCEPTUAL SKILLS: Analyzing and diagnosing complex situations to see how
things fit together and to facilitate making good decisions.
— INTERPERSONAL SKILLS: Working well with other people both individually and in
groups by communicating, motivating, mentoring, delegating, etc. Working well with others
— TECHNICAL SKILLS: Job-specific knowledge, expertise, and techniques needed to

perform work tasks. (For top-level managers—knowledge of the industry and a general
understanding of the organization’s processes and products; For middle- and lower-level
managers—specialized knowledge required in the areas where they work—finance, human
resources, marketing, computer systems, manufacturing, information technology.) Possessing expert job
knowledge
— POLITICAL SKILLS: Building a power base and establishing the right connections to
get needed resources for their groups. Want to learn more? Assess and develop your
political skill by completing the PIA and the Management Skill Builder found at the end of the
chapter on p. 47.
Political adeptness
• Other important managerial competencies:9 decision making,
team building, decisiveness, assertiveness, politeness,
Who: Robert Katz and others
personal responsibility, trustworthiness, loyalty, professionalism,
When: 1970s to present
tolerance, adaptability, creative thinking, resilience, listening,
How: Studies by various researchers
self-development.
Is the Manager’s Job Universal?

So far, we’ve discussed the manager’s job as if it were a generic activity. If management is
truly a generic discipline, then what a manager does should be the same whether he or she is
a top-level executive or a first-line supervisor; in a business firm or a government agency; in
a large corporation or a small business; or located in Paris, Texas, or Paris, France. Is that the
case? Let’s take a closer look. conceptual skills
A manager’s ability to analyze and diagnose
complex situations
Is a manager a manager no matter where
or what he or she manages? interpersonal skills
A manager’s ability to work with, understand,
mentor, and motivate others, both individually and
LEVEL IN THE ORGANIZATION. Although a supervisor of the Genius Bar in an Apple in groups
Store may not do exactly the same things that Apple’s CEO Tim Cook does, it doesn’t technical skills
mean that their jobs are inherently different. The differences are of degree and emphasis but Job-specific knowledge and techniques needed to
perform work tasks
not of activity.
As managers move up in an organization, they do more planning and less direct over- political skills
seeing of others. (See Exhibit 1–6.) All managers, regardless of level, make decisions. They A manager’s ability to build a power base and
establish the right connections
plan, organize, lead, and control, but the amount of time they spend on each activity is not
35
Exhibit 1–6 Management Activities by Organizational Level
Organizing
24% Organizing Planning
Planning Planning 33% 28%
15% 18% Organizing
Controlling 36%
Controlling Controlling
10% Leading 13% 14%
51% Leading Leading
36% 22%
First-Level Managers Middle Managers Top Managers
Source: Based on T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management,”

Industrial Relations 4, no. 2 (1965), p. 103.
necessarily constant. In addition, “what” they plan,

organize, lead, and control changes with the man-
ager’s level. For example, as we’ll demonstrate in
Chapter 7, top managers are concerned with design-
ing the overall organization’s structure, whereas
lower-level managers focus on designing the jobs of
individuals and work groups.
PROFIT VERSUS NOT-FOR-PROFIT. Does a

manager who works for the U.S. Postal Service, the
Memorial Sloan-Kettering Cancer Center, or the
Convoy of Hope do the same things that a manager
at Amazon or Symantec does? That is, is the man-
ager’s job the same in both profit and not-for-profit
organizations? The answer, for the most part, is
Ted S. Warren/AP Images
yes. All managers make decisions, set goals, create
Founder and owner of ReelSonar, Alex workable organization structures, hire and motivate
Lebedev and his employees design and de-
velop digital fishing equipment. As a small
employees, secure legitimacy for their organization’s existence, and develop internal po-
business owner, Alex plans, organizes, leads, litical support in order to implement programs. Of course, the most important difference
and controls. He performs basically the same between the two is how performance is measured. Profit—the “bottom line”—is an unam-
functions as managers in large firms do
although the activities differ in degree and
biguous measure of a business organization’s effectiveness. Not-for-profit organizations
emphasis. don’t have such a universal measure, which makes performance measurement more dif-
ficult. But don’t think this means that managers in those organizations can ignore finances.
Even not-for-profit organizations need to make money to continue operating. However, in
not-for-profit organizations, “making a profit” for the “owners” is not the primary focus.
SIZE OF ORGANIZATION. Would you expect the job of a manager in a local FedEx store
that employs 12 people to be different from that of a manager who runs the FedEx World
HUB in Memphis with over 12,000 employees? This question is best answered by looking
at the jobs of managers in small businesses and comparing them with our previous discus-
sion of managerial roles. First, however, let’s define a small business.
No commonly agreed-upon definition of a small business is available because different
criteria are used to define small. For example, an organization can be classified as a small
business using such criteria as number of employees, annual sales, or total assets. For our
purposes, we’ll describe a small business as an independent business having fewer than 500
small business employees that doesn’t necessarily engage in any new or innovative practices and has rela-
10
An independent business having fewer than 500 tively little impact on its industry. So, is the job of managing a small business different from
employees that doesn’t necessarily engage in any that of managing a large one? Yes, some differences appear to exist. As Exhibit 1–7 shows,
new or innovative practices and has relatively little
impact on its industry the small business manager’s most important role is that of spokesperson. He or she spends
a great deal of time performing outwardly directed actions such as meeting with customers,
Exhibit 1–7 Managerial Roles in Small and Large Businesses

IMPORTANCE OF ROLES
Roles Played by Managers Roles Played by Managers

in Small Firms in Large Firms
High
Spokesperson Resource allocator
Liaison
Entrepreneur
Monitor
Figurehead Moderate
Disturbance handler
Leader
Negotiator
Disseminator Entrepreneur
Low
Source: Based on J. G. P. Paolillo, “The Manager’s Self-Assessments of Managerial Roles: Small vs.
Large Firms,” American Journal of Small Business (January–March 1984), pp. 61–62.
arranging financing with bankers, searching for new opportunities, and stimulating change.
In contrast, the most important concerns of a manager in a large organization are directed
internally—deciding which organizational units get what available resources and how much
of them. Accordingly, the entrepreneurial role—looking for business opportunities and plan-
ning activities for performance improvement—appears to be least important to managers in
large firms, especially among first-level and middle managers.
Compared with a manager in a large organization, a small business manager is more
likely to be a generalist. His or her job will combine the activities of a large corporation’s
chief executive with many of the day-to-day activities undertaken by a first-line supervisor.
Moreover, the structure and formality that characterize a manager’s job in a large organiza-
tion tend to give way to informality in small firms. Planning is less likely to be a carefully
orchestrated ritual. The organization’s design will be less complex and structured, and control
in the small business will rely more on direct observation than on sophisticated, computerized
monitoring systems. Again, as with organizational level, we see differences in degree and
emphasis but not in the activities that managers do. Managers in both small and large orga-
nizations perform essentially the same activities, but how they go about those activities and
the proportion of time they spend on each are different. (You can find more information on
managing small, entrepreneurial organizations in Entrepreneurship Module.)
MANAGEMENT CONCEPTS AND NATIONAL BORDERS. The last generic issue con-
cerns whether management concepts are transferable across national borders. If managerial
concepts were completely generic, they would also apply universally in any country in the
world, regardless of economic, social, political, or cultural differences. Studies that have
compared managerial practices among countries have not generally supported the univer-
sality of management concepts. In Chapter 3, we’ll examine some specific differences be-
tween countries and describe their effect on managing. At this point, it’s important for you
to understand that most of the concepts discussed in the rest of the book primarily apply to
the United States, Canada, Great Britain, Australia, and other English-speaking countries.
Managers likely will have to modify these concepts if they want to apply them in India,
China, Chile, or other countries whose economic, political, social, or cultural environments
differ from that of the so-called free-market democracies.
Why Study Management?

Good managers are important because:
1-4 Explain why it’s # Organizations need their skills and abilities, especially in today’s uncertain,
important to study
complex, and chaotic environment.
management.
# They’re critical to getting things done.
• They play a crucial role in employee satisfaction and engagement.
Well . . . we’re finally at the point where we’re going to address the chapter-
Making Ethical Decisions in opening myth! You may still be wondering why you need to take a management
Today’s Workplace class. Especially if you’re majoring in accounting or marketing or information
technology, you may not see how studying management is going to help you in
your career. Let’s look at some reasons you may want to understand more about
50% of employees have left management.

a job to get away from a
▸ First, all of us have a vested interest in improving the way organizations
manager.11
are managed. Why? Because we interact with them every day of our lives and
an understanding of management offers insights into many organizational
▸
$319–$398 aspects. When you renew your driver’s license or get your car tags, are you
frustrated that a seemingly simple task takes so long? Are you surprised when
well-known businesses you thought would never fail went bankrupt? Are you
billion is the estimated an-

nual cost to the U.S. economy of disengaged
shocked when you see news stories (with accompanying cellphone videos)
showing unfortunate instances of employees in customer-service settings mis-
treating customers? Are you annoyed when you use a drive-through and get
managers. Managers’ engagement with ready to enjoy your food or drink and realize something is missing or that it’s
their jobs and organizations has a direct not what you ordered? Such problems are mostly the result of managers doing
impact on whether employees are engaged a poor job of managing.
12
with their jobs and organizations. Organizations that are well managed—such as Apple, Starbucks, Nike,
Southwest Airlines, and Alphabet—develop a loyal following and find ways
32%
of employees rated their to prosper even when the economy stinks. Poorly managed organizations may
▸ boss as “horrible” in a find themselves with a declining customer base and reduced revenues and may
13
Monster.com survey. have to file for bankruptcy protection even in a strong economy. For instance,
Discussion Questions: Gimbel’s, RadioShack, W. T. Grant, Hollywood Video, Dave & Barry’s, Circuit
City, Eastern Airlines, and Enron were once thriving corporations. They em-
3 Looking at these statistics, what is the po-
ployed tens of thousands of people and provided goods and services on a daily
tential ethical dilemma here? What stake- basis to hundreds of thousands of customers. You may not recognize some of
holders might be affected and how might these names because these companies no longer exist. Poor management did
they be affected? What personal, organiza- them in. By taking a management course, you can begin to recognize poor man-
tional, and environmental factors might be agement and know what good managers should be doing. Maybe you’ll even
important? What are possible alternatives aspire to being a manager!
to addressing the potential ethical issue(s?) Finally, another reason for studying management is the reality that for
What alternative(s) would you choose and most of you, once you graduate from college and begin your career, you will
what would you need to do to act on it? either manage or be managed. For those who plan to be managers, an under-
4 What could organizations do to help their
standing of management forms the foundation on which to build your own
managers be better at managing?
management skills and abilities. For those of you who don’t see yourself man-
aging, you’re still likely to have to work with managers. Also, assuming that
you’ll have to work for a living and recognizing that you’re likely to work in
an organization, you’re likely to have some managerial responsibilities even if
you’re not a manager. Our experience tells us that you can gain a great deal of insight into
the way your boss (and coworkers) behave and how organizations function by studying
management. Our point is that you don’t have to aspire to be a manager to gain valuable
information from a course in management.
What Factors Are Reshaping and

Redefining Management?
Welcome to the new world of
1-5 Describe the management!
factors that are
reshaping and Changing Workplaces + Changing
redefining Workforce
management.
# Digitization, automation, and changing views of
14
jobs/careers are disrupting the way we work.
# “NextGen work”—the next generation of work, defined as part-time, freelance,
contract, temporary, or independent contract work—is predicted to continue to rise.
15
Individuals—and organizations—are looking for alternative ways to get work done.
16
# Some 43 percent of U.S. employees work remotely all or some of the time.
# Sexual harassment allegations and accusations of workplace misconduct have
dominated the news and triggered much-needed calls for action.
# As mobile and social technologies continue to proliferate, more organizations are
using apps and mobile-enhanced websites for managing their workforces and for
other organizational work.
# Data breaches, large-scale and small, are raising new alarms about organizational
information security lapses.
In today’s world, managers are dealing with changing workplaces, a changing workforce,
changing technology, and global uncertainties. For example, grocery stores continue to strug-
gle to retain their customer base and to keep costs down. At Publix Super Markets, the large
grocery chain in the southeastern United States, everyone, including managers, is looking for
ways to better serve customers. The company’s president, Todd Jones, who started his career Claire Hobean, operations manager for
Re-Time Pty. Ltd., models the Australian
bagging groceries at a Publix in New Smyrna Beach, Florida, is guiding the company through firm’s innovative Re-Timer glasses at a con-
these challenges by keeping everyone’s focus—from baggers to checkers to stockers—on sumer electronics show. The medical device
17
exceptional customer service. And with Amazon’s purchase of Whole Foods, the whole gro- innovation uses bright light therapy to assist
18 in the treatment of insomnia, jet lag, and
cery store industry now faces an entirely different challenge. Or consider the management Seasonal Affective Disorder by helping reset a
challenges faced by the Seattle Post-Intelligencer (P-I) when it, like many other newspapers, person’s natural body clock.
struggled to find a way to be successful in an in-
dustry that was losing readers and revenues at an
alarming rate. Managers made the decision to go
all-digital, and the P-I became an Internet-only
news source. Difficult actions followed as the news
staff was reduced from 165 to less than 20 people.
In its new “life” as a digital news source, the or-
ganization faces other challenges—challenges for
the manager who needs to plan, organize, lead, and
19
control in this changed environment. Managers
everywhere are likely to have to manage in chang-
ing circumstances, and the fact is that how manag-
ers manage is changing. Throughout the rest of
this book, we’ll be discussing these changes and
how they’re affecting the way managers plan, or-
ganize, lead, and control. We want to highlight four
specific areas that are important to organizations
and managers everywhere: customers, innovation,
social media, and sustainability. Steve Marcus/Reuters
Why Are Customers Important to the Manager’s Job?

When John Chambers was CEO of Cisco Systems, he wanted voicemails forwarded to him
from dissatisfied customers because he thought it was important to hear firsthand the emotions
and frustrations they were experiencing. He couldn’t get that type of insight by reading an
20
e-mail. This manager understands the importance of customers. Chris McCarthy, president
of MTV Networks also understands how important customers are. He is listening to his young
audience and responding with what they want to see on MTV. Result? MTV's ratings are ris-
21
ing. Organizations need customers. Without them, most organizations would cease to exist.
Yet, focusing on the customer has long been thought by many managers to be the responsibility
of the marketers. We’re discovering, however, that employee attitudes and behaviors play a big
role in customer satisfaction. Think of the times you’ve been treated poorly (or superbly) by an
employee during a service encounter and how that affected the way you felt about the situation.
Managers are recognizing that delivering consistent high-quality customer service is essen-
tial for survival and success in today’s competitive environment and that employees are an im-
22
portant part of that equation. The implication is clear—they must create a customer-responsive
organization where employees are friendly and courteous, accessible, knowledgeable, prompt in
23
responding to customer needs, and willing to do what’s necessary to please the customer.
::::::: Managing Technology in Today’s Workplace :::::::

IS IT STILL MANAGING WHEN WHAT YOU’RE MANAGING ARE ROBOTS?
The workplaces of tomorrow will include workers who are faster, her there, he was able to still be “present” at the company via his
24
smarter, more responsible—and who just happen to be robots. VGo telepresence robot. Now “robot” Deininger moves easily around
Surprised? Although robots have been used in factory and industrial the office and shop floor, allowing the “real” Deininger to do his job
settings for a long time, it’s becoming more common to find robots just as if he were there in person. The company’s president, satis-
in the office and other work settings, and it’s bringing about new fied with how the robot solution has worked out, has been surprised
ways of looking at how work is done and at what and how manag- at how he acts around it, feeling at times that he’s interacting with
ers manage. So what would a manager’s job be like managing ro- Deininger himself. As technology continues to advance and human-
bots? And even more intriguing is how these “workers” might affect oid robots get better at walking, talking, and looking like humans,
how human coworkers interact with them. they’re envisioned doing jobs such as companions for the elderly,
25
As machines have become smarter and smarter, researchers teachers of schoolchildren, and retail or office assistants.
have been exploring the human-machine interaction and how people There’s no doubt that robotic technology will continue to
interact with the smart devices that are now such an integral part of be incorporated into organizational settings. The manager’s
our professional and personal lives. One insight is that people find job will become even more exciting and challenging as humans and
it easy to bond with a robot, even one that doesn’t look or sound machines work together to accomplish the organization’s goals.
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, Discussion Questions:
as a coworker. People name their robots and can even describe the 5 What’s your response to the title of this box: Is it still managing
robot’s moods and tendencies. As humanoid/telepresence robots when what you’re managing are robots? Discuss.
become more common, the humanness becomes even more evi- 6 If you had to manage people and robots, how do you think
dent. For example, when Erwin Deininger, the electrical engineer at your job as manager might be different than what the chap-
Reimers Electra Steam, a small company in Clear Brook, Virginia, ter describes? (Think in terms of functions, roles, and skills/
moved to the Dominican Republic when his wife’s job transferred competencies.)
Why Is Innovation Important to the Manager’s Job? social media

Forms of electronic communication through which
Success in business today demands innovation. Innovation means doing things differently,
users create online communities to share ideas,
exploring new territory, and taking risks. And innovation isn’t just for high-tech or other information, personal messages, and other content
technologically sophisticated organizations; innovative efforts are needed in all types, all
levels, all areas, and all sizes of organizations. You’d expect companies like Amazon, Google,
26
Uber, and Apple to be on a list of the world’s most innovative companies. But what about
27
the likes of International Dairy Queen? Although, the 78-year-old restaurant chain is not
on a list of “most innovative,” it’s experimenting with different formats and approaches to
appeal to an increasingly demanding market. Even non-tech businesses need to innovate to
prosper. Or how about Kickstarter, which created the crowdfunding phenomenon? Now, it’s
looking at ways to better encourage creativity among potential projects and startups and is
also expanding its business beyond fundraising into publishing and distribution. In today’s
challenging environment, innovation is critical and managers need to understand what, when,
where, how, and why innovation can be fostered and encouraged throughout an organization.
In a presentation a few years ago, a manager in charge of Walmart’s global business explained
his recipe for success (personal and organizational): continually look for new ways to do your
job better; that is, be innovative. Managers not only need to be innovative personally, but also
encourage their employees to be innovative. We’ll share stories of innovative practices and
approaches throughout the book.
Importance of Social Media to the Manager’s Job

You probably can’t imagine a time when employees did their work without e-mail or Internet
access. Yet, some 20 years ago, as these communication tools were becoming more com-
mon in workplaces, managers struggled with the challenges of providing guidelines for
using them. Today, it’s all about social media, which are forms of electronic communica-
tion through which users create online communities to share ideas, information, personal
messages, and other content. Social platforms such as Facebook, Twitter, LinkedIn, Tumblr,
28
Instagram, and others are used by more than a billion people. And employees don’t just use
these on their personal time, but also for work purposes. A recent survey of more than 4,000
companies showed that 72 percent used internal social media tools—such as Slack, Yammer,
Managing in a sustainable way is so impor-
Chatter, or embedded applications such as Microsoft Teams—to facilitate employee com- tant to Dell Technologies that the company
29
munication. That’s why managers again are struggling with guidelines for employee use as enlisted actor and environmental activist
they attempt to navigate the power and peril of social media. For example, at grocery chain Adrian Grenier as a Social Good Advocate to
communicate its sustainability initiatives to
SuperValu, managers realized that keeping 135,000-plus employees connected and engaged stakeholders. Dell is embedding sustainability
30
was imperative to continued success. They decided to adopt an internal social media tool to into every aspect of its operations, from prod-
foster cooperation and collaboration among its 10 distinct store brands operating in 48 states. uct design to zero-waste manufacturing and
green packaging and shipping.
And they’re not alone. More and more businesses
are turning to social media not just as a way to con-
nect with customers, but also as a way to manage
their human resources and tap into their innova-
tion and talent. That’s the potential power of social
media. But the potential peril is in how it’s used.
When the social media platform becomes a way for
boastful employees to brag about their accomplish-
ments, for managers to publish one-way messages
to employees, or for employees to argue or gripe
about something or someone they don’t like at work,
then it’s lost its usefulness. To avoid this, managers
need to remember that social media is a tool that
needs to be managed to be beneficial. At SuperValu,
store managers and assistant managers use the social
media system. Although sources say it’s too early
to draw any conclusions, it appears that managers
who actively make use of the system are having bet-
ter store sales revenues than those who don’t. In the Jack Plunkett/AP Images
sustainability remainder of the book, we’ll look at how social media is affecting how managers manage,
A company’s ability to achieve its business goals especially in the areas of human resource management, communication, teams, and strategy.
and increase long-term shareholder value by
integrating economic, environmental, and social
opportunities into its business strategies Importance of Sustainability to the Manager’s Job
BMW is probably not a company that comes to mind in a section describing sustainability.
Yet, BMW, the iconic German manufacturer of high-performance luxury autos, is making
31
a huge bet on green, wired cars for those who reside in cities. Its all-electric car is unlike
anything that BMW—or any other car manufacturer—has made. The car’s weight-saving,
carbon-fiber body is layered with electronic services and smartphone apps ready to make
life simpler and more efficient for the owner and better for the planet. Company executives
recognized that it had to add products that would meet the challenges of a changing world.
This corporate action by a well-known global company affirms that sustainability and green
management have become mainstream issues for managers.
What’s emerging in the twenty-first century is the concept of managing in a sustainable way,
which has had the effect of widening corporate responsibility not only to managing in an efficient
and effective way, but also to responding strategically to a wide range of environmental and
32
societal challenges. Although “sustainability” may mean different things to different people,
the World Business Council for Sustainable Development describes a scenario where all earth’s
33
inhabitants can live well with adequate resources. From a business perspective, sustainability
has been defined as a company’s ability to achieve its business goals and increase long-term
shareholder value by integrating economic, environmental, and social opportunities into its
34
business strategies. Sustainability issues are now moving up the business agenda. Managers at
BMW, McDonald’s, Walmart, Levi Strauss, L’Oreal, and other global businesses are discover-
ing that running an organization in a more sustainable way will mean making informed business
decisions based on (1) communicating openly with various stakeholders and understanding their
requirements and (2) factoring economic, environmental, and social aspects into how they pursue
their business goals. Throughout the rest of the book, we’ll explore sustainability as it relates to
various aspects of managing. Just look for this for those conversations.
What Employability Skills Are Critical for Getting

and Keeping a Job?
What about getting and keeping a job? Is that your main
1-6 Describe the key concern? Well, studying management can help you with that!
employability
skills gained from
studying manage-
We assume that you’re pursuing a college degree because you’d like to get a good job or a
ment that are
better job than the ones you’ve had. Wouldn’t you love to increase your odds of getting that
applicable to your job upon graduation and then succeeding at that job, crafting a long and flourishing career
future career, path? We want that for you, too! Studying management can help you develop and improve
regardless of your your employability skills. Entry-level employees and working professionals can benefit from
major. having solid foundations in skills such as critical thinking, communication, problem solving,
collaboration, and so forth. Throughout this text, you’ll learn and practice many employabil-
ity skills that hiring managers identify as important to success in a variety of business set-
tings, including small and large firms, nonprofit organizations, and public service. Such skills
will also be useful if you plan to start your own business. These skills include:
• Critical thinking involves purposeful and goal-directed thinking used to define and solve problems
and to make decisions or form judgments related to a particular situation or set of circumstances.
It involves cognitive, metacognitive, and dispositional components that may be applied differently
in specific contexts. Thinking critically typically involves elaborating on information or an idea;
describing important details and prioritizing them based on significance; identifying details that
reveal bias; embellishing an idea, description, or an answer/response; making conclusions based
on evidence that explain a collection of facts, data, or ideas; summarizing information in a concise
and succinct manner; determining the order of events and defining cause and effect relationships;
identifying influencing factors that cause events to occur; and so forth.
• Communication is defined as effective use of oral, written, and nonverbal communication skills for
multiple purposes (e.g., to inform, instruct, motivate, persuade, and share ideas); effective listening;
using technology to communicate; and being able to evaluate the effectiveness of communication
efforts—all within diverse contexts.
• Collaboration is a skill in which individuals can actively work together on a task, constructing
meaning and knowledge as a group through dialogue and negotiation that results in a final product
reflective of their joint, interdependent actions.
• Knowledge application and analysis is defined as the ability to learn a concept and then apply that
knowledge appropriately in another setting to achieve a higher level of understanding.
• Social responsibility includes skills related to both business ethics and corporate social responsi-
bility. Business ethics includes sets of guiding principles that influence the way individuals and
organizations behave within the society that they operate. Being ethical at your job involves the
ability to identify potential ethical dilemma(s); the affected stakeholders; the important personal,
organizational, and external factors; possible alternatives; and the ability to make an appropriate
decision based on these things. Corporate social responsibility is a form of ethical behavior that re-
quires that organizational decision makers understand, identify, and eliminate unethical economic,
environmental, and social behaviors.
CRITICAL THINKING
# Using purposeful and goal-directed thinking
# Applying information differently in different contexts
# Elaborating on information or an idea
# Describing important details and prioritizing them according to significance
# Identifying details that reveal bias
# Embellishing an idea, description, or answer/response
# Making conclusions based on evidence
# Summarizing information
# Determining order of events
# Defining cause and effect relationships
COMMUNICATION
# Effectively using oral, written, and nonverbal communication for multiple
purposes
# Effectively listening
# Using technology to communicate
# Critically analyzing messages
# Adapting one’s communication in diverse cultural contexts
# Evaluating effectiveness of communication in diverse contexts
COLLABORATION
# Actively working together on a task or finding solutions to problem situations
# Constructing meaning and knowledge as a group
# Being able to dialogue and negotiate in a group
# Being able to work jointly and interdependently in a group
# Working with others to select, organize, and integrate information and ideas from
a variety of sources and formats
# Being able to appropriately resolve conflict, making sure all voices are heard
KNOWLEDGE APPLICATION AND ANALYSIS

# Recalling previously learned material
# Describing concepts in your own words
# Demonstrating knowledge of facts and key concepts
# Learning a concept and applying that knowledge to real-life situations
# Thinking through solutions to specific problems and generalizing these processes
to other situations
# Combining ideas into a new whole or proposing solutions
# Assessing the value of material for a given purpose
SOCIAL RESPONSIBILITY
# Identifying potential ethical dilemmas; affected stakeholders; important personal,
organizational and external factors; and possible alternatives
# Making appropriate decisions based on the preceding factors
# Applying ethical reasoning and critical analysis to real-world scenarios
Each chapter is loaded with opportunities for you to use and work on the skills you’ll
need to be successful in the twenty-first century workplace. Skills that will help you get
a job and pursue a fulfilling career path, wherever that might take you! The following
Employability Skills Matrix links these five employability skills with special features found
in each chapter. Our unique features include (1) three distinctive boxes—Classic Concepts
in Today’s Workplace (historical management concepts and how they’re used today), Being
Ethical: A 21st-Century Skill (a real-life, contemporary ethics dilemma), and Managing
Technology in Today’s Workplace (ways technology is changing the workplace); (2) MyLab
assignments, particularly Write It, Watch It, and Try It; (3) Management Skill Builder, which
highlights a specific management skill and provides an opportunity to “do” that skill; (4)
Experiential Exercise, which is another learning-by-doing, hands-on assignment where you
“do” something, usually within a group; and (5) Case Applications, real-life stories of people
and organizations. Within these features, you’ll have the opportunity to think critically and
apply your knowledge as you consider special cases and concepts. You’ll also have the oppor-
tunity to improve your collaboration and communication skills by learning what you might
do or say in the described situations to adapt to the work world positively and effectively. And
you’ll be confronted with ethical dilemmas in which you’ll consider the ethics of particular
behaviors in the workplace. All five of these skills are critical to success whether you pursue
a career in management or some other field since, as the previous section pointed out, the
workplace and workforce are changing and will continue to change. These skills will help
you successfully navigate those changes.
Wrapping It Up . . .
Managers Matter!
As you can see, being a manager is both challenging and exciting! One thing we know
for sure is that managers do matter to organizations. The Gallup Organization, 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 employees and their
direct supervisors. Gallup also found that employees’ relationship with their manager is
employee engagement
the largest factor in employee engagement—which is when employees are connected to, When employees are connected to, satisfied with,
satisfied with, and enthusiastic about their jobs—accounting for at least 70 percent of an and enthusiastic about their jobs
35
employee’s level of engagement. And Gallup found that when companies increase their
number of talented managers and double the rate of engaged employees, their EPS (earn-
36
ings per share) is 147 percent higher than their competitors. That’s significant! This same
research also showed that talented managers contribute about 48 percent higher profit to
37
their companies than do average managers. Finally, a different study found that when a
poor manager was replaced with a great one, employee productivity increased by 12 per-
38
cent. What can we conclude from such reports? That talented managers do matter and
will continue to matter to organizations!
EMPLOYABILITY SKILLS MATRIX

Critical Thinking Communication Collaboration Knowledge Social
Application and Responsibility
Analysis
Classic Concepts in Today’s ✓ ✓ ✓ ✓
Workplace
Making Ethical Decisions in ✓ ✓ ✓ ✓ ✓
Today’s Workplace
Managing Technology in ✓ ✓ ✓ ✓ ✓
Today’s Workplace
MyLab: Write It, Watch It, ✓ ✓ ✓
Try It
Management Skill Builder— ✓ ✓ ✓
Practicing the Skill
Experiential ✓ ✓ ✓
Exercise
Case ✓ ✓ ✓
Application 1
Case ✓ ✓ ✓
Application 2
Case ✓ ✓
Application 3
CHAPTER SUMMARY BY LEARNING OUTCOME
1-1 Tell who managers are and where they work. 1-4 Explain why it’s important to study
management.
Managers are individuals who work in an organization direct-
ing and overseeing the activities of other people. Managers One reason it’s important to study management is that all of
are usually classified as top, middle, first-line, or team leader. us interact with organizations daily so we have a vested in-
Organizations, which are where managers work, have three terest in seeing that organizations are well managed. Another
characteristics: goals, people, and a deliberate structure. reason is the reality that in your career, you will either man-
age or be managed. By studying management you can gain
1-2 Define management. insights into the way your boss and fellow employees behave
and how organizations function. Finally, taking a course
Management is the process of getting things done, effectively in management will help you develop and improve your
and efficiently, with and through other people. Efficiency employability skills. These skills—which include critical
means doing a task correctly (“doing things right”) and getting thinking, communication, collaboration, knowledge applica-
the most output from the least amount of inputs. Effectiveness tion and analysis, and social responsibility—are essential to
means “doing the right things” by doing those work tasks that getting and keeping a job.
help the organization reach its goals.
1-5 Describe the factors that are reshaping
1-3 Describe what managers do. and redefining management.
What managers do can be described using three approaches: In today’s world, managers are dealing with changing work-
functions, roles, and skills/competencies. The functions ap- places, a changing workforce, global economic and political
proach says that managers perform four functions: planning, uncertainties, and changing technology. Four areas of critical
organizing, leading, and controlling. Mintzberg’s roles ap- importance to managers are delivering high-quality customer
proach says that what managers do is based on the 10 roles service, encouraging innovative efforts, using social media
they use at work, which are grouped around interpersonal efficiently and effectively, and recognizing how sustainability
relationships, the transfer of information, and decision mak- contributes to an organization’s effectiveness.
ing. The skills/competencies approach looks at what managers
do in terms of the skills and competencies they need and use. 1-6 Describe the key employability skills
Four critical management skills are conceptual, interpersonal, gained from studying management that are
technical, and political. Additional managerial competencies
applicable to your future career, regardless
include aspects such as dependability, personal orientation,
emotional control, communication, and so forth. All managers of your major.
plan, organize, lead, and control, although how they do these
activities and how often they do them may vary according The key employability skills gained from studying management
to their level in the organization, whether the organization is include critical thinking, communication, collaboration, knowl-
profit or not-for-profit, the size of the organization, and the edge application and analysis, and social responsibility. These
geographic location of the organization. skills will help you be successful in a variety of business settings.
46
DISCUSSION QUESTIONS
1-1 What is an organization and what characteristics do each of the four management functions. Write up a
organizations share? description and explain how these are examples of that
1-2 “Roles define the manager.” Do you agree or disagree with function.
this statement? Discuss what you think managers do. 1-6 Consider your local greengrocer. Discuss how manag-
1-3 In today’s environment, which is more important to ers of such small businesses can adopt Mintzberg’s ten
organizations—efficiency or effectiveness? Explain your managerial roles to run their business.
choice. 1-7 Business is changing over time and requires management
1-4 Are there any differences between the managerial func- methods to evolve. What are the factors that contribute to
tions in a for-profit organization and a not-for-profit orga- management changes?
nization? Explain. 1-8 Is there one best “style” of management? Why or why
1-5 Using any of the popular business periodicals (such as not?
Bloomberg Businessweek, Fortune, Wall Street Journal, 1-9 In what ways can managers at each of the four levels of
Fast Company), find examples of managers doing management contribute to efficiency and effectiveness?

Management Skill Builder | BECOMING POLITICALLY ADEPT
Anyone who has had much work experience knows that organizational politics exists everywhere. That is, people try to influ-
ence the distribution of advantages and disadvantages within the organization in their favor. Those who understand organizational
politics typically thrive. Those who don’t, regardless of how good their actual job skills are, often suffer by receiving less positive
performance reviews, fewer promotions, and smaller salary increases. If you want to succeed as a manager, it helps to be politically
39
adept. Research has shown that people differ in their political skills. Those who are politically skilled are more effective in their
use of influence tactics. Political skill also appears to be more effective when the stakes are high. Finally, politically skilled individ-
uals are able to exert their influence without others detecting it, which is important in being effective so that you’re not labeled as
playing politics. A person’s political skill is determined by (1) his or her networking ability, (2) interpersonal influence, (3) social
astuteness, and (4) apparent sincerity.
MyLab Management
PERSONAL INVENTORY ASSESSMENT
P I A
PERSONAL
INVENTORY
Go to www.pearson.com/mylab/management to complete the Personal ASSESSMENT
Inventory Assessment related to this chapter.
Skill Basics thinking. If you don’t have that ability, you’ll have to work
at developing your social astuteness by doing things such
Forget, for a moment, the ethics of politicking and any negative
as saying the right things at the right time, paying close
impressions you might have of people who engage in organiza-
attention to people’s facial expressions, and trying to de-
tional politics. If you want to become more politically adept in
termine whether others have hidden agendas.
your organization, follow these steps:
• Be sincere. Sincerity is important to getting people to want
• Develop your networking ability. A good network can be
to associate with you. Be genuine in what you say and do.
a powerful tool. You can begin building a network by get-
And show a genuine interest in others and their situations.
ting to know important people in your work area and the
organization and then developing relationships with indi-
viduals in positions of power. Volunteer for committees Practicing The Skill
or offer your help on projects that will be noticed by those Take each of the components of political skill and spend
in positions of power. Attend important organizational one week working on it as you navigate your school life and
functions so that you can be seen as a team player and work life. Keep a journal (or brief set of notes) describing
someone who’s interested in the organization’s success. your experiences—good and bad. Were you able to begin
Start a file list of individuals that you meet, even if for a developing a network of people you could rely on or connect
brief moment. Then, when you need advice on work, use with for school or work commitments? How did you try to
your connections and network with others throughout the become better at influencing those around you? Did you work
organization. at communicating better or at developing a good rapport with
• Work on gaining interpersonal influence. People will listen coworkers or class project team members? Did you work at
to you when they’re comfortable and feel at ease around developing your social astuteness, maybe by starting to recog-
you. Work on your communication skills so that you can nize and interpret people’s facial expressions and the meaning
communicate easily and effectively with others. Work on behind those expressions? Did you make a conscious effort to
developing a good rapport with people in all areas and at be more sincere in your relationships with others, especially
all levels of your organization. Be open, friendly, and will- those that are not close friends? What could you have done
ing to pitch in. The amount of interpersonal influence you differently to be more politically skilled? Once you begin to
have will be affected by how well people like you. recognize what’s involved with political skills, you should find
yourself becoming more connected and better able to influence
• Develop your social astuteness. Some people have an in- others—that is, more politically adept.
nate ability to understand people and sense what they’re
Experiential Exercise
Welcome to our annual management R&R (retreat and retrospective)! We thought we’d have some fun this year playing a game we’re calling
“Good Boss, Bad Boss.” What, you ask, is “Good Boss, Bad Boss?” It’s an activity in which we’re going to explore what “good” bosses are
like and what they do and what “bad” bosses are like and what they do. We hope in completing this that (1) you’ll have fun talking about this
with your team, sharing stories and experiences, and (2) maybe, just maybe, you’ll recognize your own characteristics and behaviors as a
“boss.” Are you more like a “good” boss or a “bad” boss? While we’re doing this as a fun activity, we encourage you to stop and think about
how we (all of us) “manage/lead” and its impact on our employees. And always remember, through our actions and behaviors, we DO affect
our employees’ work experiences and efforts!
Here are your instructions:
(1) In your “assigned” team, talk about good bosses. What do they do that makes them “good”? What characteristics do they have?
How do they treat employees? How do they get their employees to be efficient and effective? Then, do the same thing for bad
bosses. What do they do that makes them “bad”? What characteristics do they have? How do they treat employees? How do they
discourage their employees from being efficient and effective? To help you get started, think about bosses you’ve had—or maybe
even about successes/failures you’ve had as you’ve “bossed”!
(2) Make a master list of your ideas about “good” bosses and one for “bad” bosses.
(3) Create a chart summarizing this information that you can share with the rest of the groups. Although it’s not required, if you can think
of an appropriate meme or other visual, create and share that also.
(4) Finally, identify three “takeaways” that you think are most important from what your team discussed. What are the three traits of
bosses that everyone wants to work for? Make a list of these and briefly explain why you think they’re important. Focus on what we
(all of the company managers) might do to be bosses who would be considered “good”! We plan to compile all of these and use
them in our management training modules.
CASE APPLICATION # 1
Training Better Managers...Now at Walmart
Topic: Management training
W
almart, the world’s largest retailer, is a mega- vital that it has spent $2.7 billion (yes, that’s billion!) on em-
business with more than 11,700 retail units in 28 ployee training and raising employee wages. That’s a signifi-
countries and approximately 2.3 million associ- cant investment. However, there are companies that evidently
ates around the world. That’s a lot of employees to manage! don’t focus on training managers as Walmart does. Here are
43
Its most recent annual revenues were more than $485.3 bil- some startling statistics :
lion with profits of more than • 26 percent of new man-
$13.6 billion. Because of its agers feel they’re unprepared
position as the United States’s Helping employees to transition into management
largest private employer, take charge of their roles.
• 58 percent of new manag-
Walmart often finds itself at
the center of controversy over careers! ers don’t receive any train-
ing to help them make the
employee-related issues, from transition.
40 41
sick day policies to wage concerns. However, in 2016, • 48 percent of first-time managers fail in that transition.
the company created its Walmart Academy training pro-
gram, a program intended to help those employees in lower- Considering the important role that managers play in employee
level management positions be more successful in their motivation and engagement, investing in training, like Walmart
careers. Currently, there are some 100 of these academies is doing, seems to be a good investment.
across the United States. Since its inception, more than
150,000 store supervisors and department managers have
gone through the weeks-long training.
42 Discussion Questions
What does the training include? Topics cover advanced 1-10 Why would a company want employees in lower-level manage-
retail skills, including merchandising, ordering, and inventory ment positions to be more successful in their careers? (Hint: Think
control, plus managerial skills, including better communica- efficiency/effectiveness and the four functions of management.)
tion and motivating employees. All management training 1-11 What benefits and challenges do you see to a training program
is designed with the goal of helping transform the in-store such as this?
shopping experience into a consistently positive one. As the 1-12 What additional managerial topics might you suggest be cov-
industry faces increasing competitive pressures from Amazon ered in the Walmart Academy training program? Think in terms
and other online sellers, brick-and-mortar retailers are being of the three ways to look at what managers do.
forced to provide customers with something that makes the 1-13 Many college graduates are reluctant to pursue a career
customer want to come to their store again and again. For in a retail organization...even at the world’s largest.
Discuss how a company like Walmart could attract tal-
Walmart, this means that if the company wants to create a
ented graduates.
more pleasant in-store shopping experience, it needs a well-
1-14 Does an organization have an ethical responsibility to assist
trained and engaged workforce. That starts with the managers
new managers transition into their positions? Why or why not?
who, in turn, take that focus back to training their employees
to be attentive to customers. Walmart thinks this effort is so
Managing without Managers
Topic: Spotify
“S
potify, a Swedish commercial music service, is widely traditional management. Within the Spotify offices, the multiple
credited with dramatically changing the way consum- squads that make up each tribe sit close together to allow collab-
ers access and use music on a day-to-day basis. It oration between squads as needed; however, the ethos of Spotify
has succeeded in moving consumers away from buying music is to discourage squads and tribes being dependent on one an-
and them toward a model of renting the music they enjoy for a other so that change can happen as quickly as possible, which
monthly fee. Launched in 2008, the music giant was turned into is incredibly important in the ever-changing technology market.
the business we know today by Swedish entrepreneur Daniel Ek, To manage the staff and structure throughout the organi-
who wanted to create a service that would be easier and more zation, Spotify utilizes what they call “chapters,” which are
convenient for customers to use than the now-illegal file-sharing collections of people who have similar skills but who work in
44
websites that were popular at the time. various squads; for example, a chapter may include all of the
Like many technology companies, Spotify has a flat or- programmers in the various squads within one tribe. It is within
ganizational structure rather than complex hierarchies of man- these chapters that we see more of a link to traditional manage-
agement. For companies like Spotify, to get to the customer ment theory, with clearer lines of management and responsibil-
as quickly as possible, it is imperative that they work in a fast- ity for staff members, their development, pay, and progression.
moving way that allows changes in content. In order to work at The only time people may work outside their tribe is when tak-
the greatest efficiency, Spotify have adopted a management and ing part in “guild” activities. Guilds are cross-tribe groups of
organizational structure based upon squads, chapters, tribes, and people who have similar interests but—again—do not have any
guilds. Although there is little literature on organizational tribes formal management; they are autonomous and self-managed,
or chapters, these do provide a useful way for Spotify to organize working on projects or problems that interest them.
their staff and reporting structures in an industry where many are As a fast-moving technology company, it is of course es-
45
trying to remove managers entirely. sential for Spotify to be able to react, change, and adapt their
Squads are the building blocks of the organizational struc- online content quickly. By approaching management in a
ture at Spotify. These small teams work in a way that is similar non-traditional manner, they allow individuals to be more cre-
to a small startup business. These squads sit together in one ative while meeting the overall goals of the business. There
shared space to work as effectively as possible on one long-term are, however, potential difficulties in adopting this more
mission, which is usually improving a specific area or part of relaxed attitude to management, as there is a lack of control
the Spotify experience. Squads do not have a manager and in- overall and many opportunities for the freedom offered to
stead work together to ensure that the overall problem is solved. staff to be misused.
Each squad does, however, have a “product owner” whose job is The rise of technology companies such as Spotify is
to ensure that work is prioritized across the whole squad. Within changing the landscape of management, for many are trying to
each squad you will find employees with different skills who avoid traditional management practices altogether. Spotify is
46
can contribute toward the squad achieving their goal. somewhat unique in its field as they have recognized the need
Tribes are groups of squads that work in similar areas. This for management within the organization but attempted to find a
means that all the squads working on web-based services are part unique way of balancing the need for freedom and creativity in
of the same tribe, and squads who work on the mobile Spotify the workforce while still undertaking basic management activi-
application will be part of a different tribe. Each tribe, like the ties. As Spotify grows in size, they may need to reflect upon
individual squads, can work autonomously, with very little their approach to management.
Discussion Questions
1-15 Who undertakes management at Spotify? 1-17 Are there any similarities to traditional management at Spotify?
1-16 How might Spotify manage poorly performing individuals or 1-18 Do you think that this approach to management would be ef-
teams? Do you think this could be a problem at Spotify? Why or fective at another company?
why not?
Destroying the World
Topic: Data Security and Data Breaches
Y
ou used to be able to tell who the bad guys were. But be viewed as a significantly critical error and misstep by Intel.
in our increasingly digital online world, those days How did it all come to light?
are long gone. Now, the bad guys are faceless and In June 2017, a security team at Google’s Project Zero
anonymous. And they can and do inflict all kinds of damage notified Intel that it had discovered the flaws in Intel’s chips.
on individuals, businesses, governments, and other organiza- Who or what is Project Zero? It’s the name of team of security
tions. Surveys show that data breach attacks are happening analysts employed by Google who are tasked with finding
with alarming regularity. And while your home and school PCs “zero-day vulnerabilities.” The sole mission of this team of
are hopefully well protected from data theft and viruses, don’t top security researchers is to identify and incapacitate the most
think that you’re in the clear. Data thieves are also targeting serious security flaws in the world’s software so there are zero
49
smartphones and other mobile days of vulnerability.
devices. And in early 2018, the (If you’re interested, a
potential for these thieves to Managing talented people thorough technical de-
steal your information on your in a work environment scription of what the
personal devices or information team found can be read
stored on others’ computing de- that’s quickly shifting at https://googlepro-
vices rose dramatically. can be quite challenging! jectzero.blogspot
The news broke in early .com/. Look for a blog
2018 that independent research- post by Jann Horn posted
ers had discovered flaws in chip designs made by Intel on January 3, 2018.) After being notified of the potentially cat-
Corporation that hackers could exploit to steal data thought astrophic flaw, Intel, behind the scenes, worked on fixes with
47
to be secure. Every PC, smartphone, and server was ex- Alphabet Inc.’s Google unit and other “key” computer makers
50
posed and vulnerable. These flaws, code-named Meltdown and cloud computing companies. Intel had planned to make
and Spectre, are unprecedented in their potential information the discovery public on January 9, 2018. However, on January
security vulnerabilities. 3, 2018, the U.K. website the Register broke the news about the
Intel has been the world’s foremost chipmaker for well flaws. Now, the cat was out of the bag, and the fallout was just
over 25 years. It makes about 90 percent of the world’s com- beginning. Another issue that eventually came to light was the
puter processors and some 99k percent of the server chips that disclosure that Intel had told Chinese companies Lenovo and
48
run the internet. Intel is a big company with a solid reputa- Alibaba of the security issues before it had alerted key national
51
tion for reliability. However, this whole situation is likely to security agencies of the U.S. government.
As Intel and other tech companies work on patches for the 1-20 Look at the timeline of how these flaws were discovered.
chip flaws, managers of data centers at companies around the Do you think Intel should have done anything differently?
world are working to protect their data and their customers. It’s Explain.
a challenge because quick fixes aren’t perfect and long-term 1-21 Keeping professionals excited about work that is routine, stan-
fixes won’t be easy. And the hackers keep hacking. As data dardized, and chaotic is a major challenge for managers at data
security companies. How could they use technical, human, and
security breaches have become all too common, managing
conceptual skills to maintain an environment that encourages
those individuals who work to identify and protect data in an innovation and professionalism?
environment that’s quickly shifting can be quite challenging.
1-22 In your “assigned” team, discuss Intel’s disclosure about the
computer security flaws to Chinese companies before disclo-
Discussion Questions sure to U.S. government agencies and officials. What potential
1-19 In addition to the challenges of “fixing” the flaws, what other ethical issues do you see here? What advice would you have
issues are Intel’s top managers going to have to address? (Hint: given to the top management team at Intel about their deci-
sions and actions?
Think about who might be affected and how they might be af-
fected...both inside and outside the company.)
Endnotes
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com Unabridged, based on the Problems, February 2011, pp. Entrepreneurship and Beyond com,” http://www.seattlepi.com/
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manage; Online Etymology February 2008, p. 19. Alertness,” Journal of Small York Times Online, March 17,
Dictionary, www.etymonline. 4. L. Stevens and E. E. Phillips, Business Management, October 2009.
com, June 5, 2009; P. F. Drucker, “More Amazon Orders, Fewer 1996, pp. 35–44; and J. W. 20. F. F. Reichheld, “Lead for
Management: Revised Edition Boxes,” Wall Street Journal, Carland, F. Hoy, W. R. Boulton, Loyalty,” Harvard Business
(New York: HarperCollins December 21, 2017, p. B3. and J. C. Carland, “Differentiating Review, July–August 2001, p. 76.
Publishers, 2008); and F. W. 5. H. Fayol, Industrial and General Entrepreneurs from Small Business 21. J. Ringen, “MTV Strikes a Chord
Taylor, Principles of Scientific Administration (Paris: Dunod, Owners: A Conceptualization,” With Gen Z,” Fast Company,
Management (New York: Harper, 1916). Academy of Management Review 9, November 2017, pp. 48–52.
1911), p. 44. For other informa- 6. H. Mintzberg, The Nature of no. 2 (1984), pp. 354–59. 22. See, for instance, H. Ernst,
tion on Taylor, see S. Wagner- Managerial Work (New York: 11. T. Nolan, “The No. 1 Employee W. D. Hoyer, M. Krafft,
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Economic Reconstruction of 7. S. J. Carroll and D. A. Gillen, About,” Gallup Inc., news.gallup. Relationship Management and
Scientific Management: On “Are the Classical Management com, December 21, 2017. Company Performance—The
the Lost Theoretical Logic Functions Useful in Describing 12. State of the American Manager: Mediating Role of New Product
of Taylorism,” Academy of Managerial Work?” Academy of Analytics and Advice for Leaders, Performance,” Journal of the
Management Review, January Management Review, January Gallup Inc., http://www.gallup. Academy of Marketing Science,
2007, pp. 105–17; R. Kanigel, 1987, p. 48. com/services/182138/state- April 2011, pp. 290–306; J. P.
The One Best Way: Frederick 8. See, for example, J. G. Harris, D. american-manager.aspx. Dotson and G. M. Allenby,
Winslow Taylor and the Enigma W. DeLong, and A. Donnellon, 13. K. Tynan, “The Truth about “Investigating the Strategic
of Efficiency (New York: Viking, “Do You Have What It Takes to Management,” TD, June 2017, Influence of Customer and
1997); and M. Banta, Taylored Be an E-Manager?” Strategy and pp. 48–51. Employee Satisfaction on
Lives: Narrative Productions in Leadership, August 2001, pp. 10– 14. J. Hess and S. Olsen, “What Firm Financial Performance,”
the Age of Taylor, Veblen, and 14; C. Fletcher and C. Baldry, “A Will Work Look Like in 2030?” Marketing Science, September–
Ford (Chicago: University of Study of Individual Differences Stratey+Business, www.strategy- October 2010, pp. 895–908; R.
Chicago Press, 1993). and Self-Awareness in the Context business.com, December 18, Grewal, M. Chandrashekaran,
3. S. Stevenson, “Don’t Go to of Multi-Source Feedback,” 2017. and A. V. Citrin, “Customer
Work,” http://www.slate.com/ Journal of Occupational and 15. “Why Is the Gig Economy So Satisfaction Heterogeneity and
articles/business/ psychology_ Organizational Psychology, Appealing?” TD, January 2018, Shareholder Value,” Journal of
of_management/2014/05/ September 2000, pp. 303–19; and p. 13; and “#GigResponsibly: Marketing Research, August
best_buy_s_rowe_ experiment_ R. L. Katz, “Skills of an Effective The Rise of NextGen Work,” 2010, pp. 612–26; M. Riemann,
can_results_only_work_ Administrator,” Harvard Business Manpower Group, 2017, O. Schilke, and J. S. Thomas,
“Customer Relationship of Employee Displayed Update 2014,” Pew Research Days,” New York Times Online,
Management and Firm Positive Emotions,” Journal of Center, http://www.pewinternet. June 1, 2017.
Performance: The Mediating Management 27, no. 4 (2001), org/2015/01/09/social-media- 41. L. Thomas, “As Wal-Mart Blitzes
Role of Business Strategy,” pp. 497–512; E. Naumann and update-2014/, January 9, 2015. Internet Retail, Debate Rages
Journal of the Academy of D. W. Jackson Jr., “One More 29. P. Leonardi and T. Neeley, “What over Company’s Impact on US
Marketing Science, Summer Time: How Do You Satisfy Managers Need to Know about Wages,” CNBC, https://www.
2010, pp. 326–46; and K. A. Customers?”, Business Horizons, Social Tools,” Harvard Business cnbc.com/2017/04/20/wal-mart-
Eddleston, D. L. Kidder, and B. E. May-June 1999, pp. 71-76; and Review, November–December still-front-and-center-of-debate-
Litzky, “Who’s the Boss? M. D. Hartline and O. C. Ferrell, 2017, pp. 118–26. over-minimum-wages.html.
Contending with Competing “The Management of Customer- 30. D. Ferris, “Social Studies: How to 42. M. Corkery, “At Walmart
Expectations from Customers Contact Service Employees: An Use Social Media to Build a Better Academy, Training Better
and Management,” Academy Empirical Investigation,” Journal Organization,” Workforce Online, Managers. But with a Better
of Management Executive, of Marketing, October 1996, February 12, 2012. Future?” New York Times Online,
November 2002, pp. 85–95. pp. 52–70. 31. A. Taylor III, “BMW Gets August 8, 2017.
23. See, for instance, S. Alguacil- 24. Technology and the Manager’s Plugged In,” Fortune, March 18, 43. M. S. Plakhotnik and T. S. Rocco,
Mallo, "A Customer-Centric State Job box based on D. Bennett, 2013, pp. 150–56. “A Succession Plan for First-Time
of Mind," TD, April 2018, pp. 38– “I’ll Have My Robots Talk 32. KPMG Global Sustainability Managers,” T&D, December 2011,
42; C. B. Blocker, D. J. Flint, M. B. to Your Robots,” Bloomberg Services, Sustainability Insights, pp. 42–45; P. Brotherton, “New
Myers, and S. F. Slater, “Proactive Businessweek, February 21–27, October 2007. Managers Feeling Lost at Sea,”
Customer Orientation and Its Role 2011, pp. 52–62; E. Spitznagel, 33. Vision 2050 Report, Overview, T&D, June 2011, p. 25; and “How
for Creating Customer Value in “The Robot Revolution www.wbcsd.org/vision2050.aspx. Do We Help a New Manager
Global Markets,” Journal of the Is Coming,” Bloomberg 34. Symposium on Sustainability— Manage?” Workforce Management
Academy of Marketing Science, Businessweek, January 17–23, Profiles in Leadership, New York, Online, June 16, 2011.
April 2011, pp. 216–33; G. A. 2011, pp. 69–71; G. A. Fowler, October 2001. 44. H. Kniberg, “Spotify Engineering
Gorry and R. A. Westbrook, “Once “Holiday Hiring Call: People 35. J.Harter and A.Adkins,“Employees Culture (Part 1),” 2014, www.labs.
More, with Feeling: Empathy and vs. Robots,” Wall Street Journal, Want a Lot More from Their spotify.com/2014/03/27/spotify-
Technology in Customer Care,” December 20, 2010, pp. B1+; A. Managers,” www.gallup.com/busi- engineering-culture-part-1/,
Business Horizons, March–April Schwartz, “Bring Your Robot to nessjournal, April 8, 2015. March 27, 2014.
2011, pp. 125–34; M. Dixon, K. Work Day,” Fast Company.com, 36. R. Beck and J. Harter, “Why 45. H. Kniberg, “Spotify Engineering
Freeman, and N. Toman, “Stop November 2010, pp. 72–74; and Great Managers Are So Rare,” Culture (Part 2),” 2014, https://
Trying to Delight Your Customers,” P. J. Hinds, T. L. Roberts, and H. www.gallup.com/businessjournal, labs.spotify.com/2014/09/20/spo-
Harvard Business Review, July– Jones, “Whose Job Is It Anyway? March 26, 2014. tify-engineering-culture-part-2/
August 2010, pp. 116–22; D. M. A Study of Human-Robot 37. Ibid. (last accessed October 21, 2015).
Mayer, M. G. Ehrhart, and B. Interaction in a Collaborative 38. S. Bailey, “No Manager Left 46. D. Lynskey, “Is Daniel Ek, Spotify
Schneider, “Service Attribute Task,” Human-Computer Behind,” Chief Learning Officer, Founder, Going to Save the
Boundary Conditions of the Service Interaction, March 2004, pp. February 2015, p. 30. Music Industry … or Destroy It?”
Climate-Customer Satisfaction 151–81. 39. S. Y. Todd, K. J. Harris, R. B. Harris, November 10, 2013, http://www.
Link,” Academy of Management 25. J. Bellini, “The Robot and A. R. Wheeler, “Career Success theguardian.com/technology/
Journal, October 2009, pp. 1034– Revolution: Humanoid Implications of Political Skill,” 2013/nov/10/daniel-ek-spotify-
50; B. A. Gutek, M. Groth, and Potential—Moving Upstream,” Journal of Social Psychology, June streaming-music (last accessed
B. Cherry, “Achieving Service Wall Street Journal Online, 2009, pp. 179–204; G. R. Ferris, October 21, 2015).
Success through Relationships and https://www.wsj.com/articles D. C. Treadway, P. L. Perrewé, R. 47. M. Chafkin and I. King, “Dying
Enhanced Encounters,” Academy /the-robot-revolution-humanoid- L. Brouer, C. Douglas, and S. Lux, Inside,” Bloomberg Businessweek,
of Management Executive, p o t e n t ia l - m ov i n g - u p s t r e a m - “Political Skill in Organizations,” January 22, 2018, pp. 53–55.
November 2002, pp. 132–44; 1517221862; and A. Martin, Journal of Management, June 48. Ibid.
Eddleston, Kidder, and Litzky, “SoftBank, Alibaba Team Up 2007, pp. 290–329; K. J. Harris, 49. A. Greenberg, “Meet ‘Project
“Who’s the Boss? Contending on Robot,” Wall Street Journal K. M. Kacmar, S. Zivnuska, and J. Zero,” Google’s Secret Team of
with Competing Expectations from Online, https://www.wsj.com/arti- D. Shaw, “The Impact of Political Bug-Hunting Hackers,” Wired
Customers and Management”; S. cles/pepper-softbanks-emotional- Skill on Impression Management Online, https://www.wired.
D. Pugh, J. Dietz, J. W. Wiley, robot-goes-global-1434618111. Effectiveness,” Journal of Applied com/2014/07/google-project-
and S. M. Brooks, “Driving 26. “The World’s 50 Most Innovative Psychology, January 2007, zero/, July 15, 2014.
Service Effectiveness through Companies,” Fast Company, pp. 278–85; and G. R. Ferris, D. 50. R. McMillan and L. Lin, “Intel
Employee-Customer Linkages,” March 2017. C. Treadway, R. W. Kolodinsky, Told China of Flaw before U.S.,
Academy of Management 27. N. Friedman, “Buffett’s New Lead- W. A. Hochwarter, C. J. Wall Street Journal, January 29,
Executive, November 2002, pp. erat Dairy Queen,” Wall Street Kacmar, C. Douglas, and D. D. 2018, pp. A1+.
73–84; S. D. Pugh, “Service with Journal, February 3–4, 2018, p. B3. Frink, “Development and Validation 51. Ibid.
a Smile: Emotional Contagion in 28. “Top 15 Most Popular Social of the Political Skill Inventory,”
the Service Encounter,” Academy Networking Sites,” http://www. Journal of Management, February
of Management Journal, October ebizmba.com/articles/social- 2005, pp. 126–52.
2001, pp. 1018–27; W. C. Tsai, networking-websites, February 40. R. Abrams, “Walmart Is Accused
“Determinants and Consequences 2015; and “Social Media of Punishing Workers for Sick
History Module
A BRIEF HISTORY OF MANAGEMENT’S ROOTS
Henry Ford once said, “History is more or less bunk.” Well . . . Henry Ford was wrong! History is im-
portant because it can put current activities in perspective. We propose that you need to know manage-
ment history because it can help you understand what today’s managers do. In this module, you’ll find
an annotated timeline that discusses key milestones in management theory. Check out each chapter’s
“Classic Concepts in Today’s Workplace” box feature where we highlight a key person and his or her
contributions or a key historical factor and its effect on contemporary management concepts. We believe
this approach will help you better understand the origins of many contemporary management concepts.
Early Management
Management has been practiced a long time. Organized endeavors directed by people responsible
for planning, organizing, leading, and controlling activities have existed for thousands of years.
Regardless of what these individuals were called, someone had to perform those functions.
Early Management Behavioral Approach Contemporary Approaches
1911–1947 1940s–1950s
• 3000 BCE–1776 Late 1700s–1950s 1960s–present

Classical Approaches Quantitative Approach
Stephen Studd/The Image
Antonio Natale/Getty Images
Transcendental Graphics/Archive
Bank/Getty Images
Fotosearch/Archive Photos/Getty Images
Photos/Getty Images
3000–2500 BCE
The Egyptian pyramids are proof that
projects of tremendous scope, employ- 1400s 1780s–Mid-1800s
ing tens of thousands of people, were At the arsenal of Venice, warships The Industrial Revolution may be the
completed in ancient times.1 It took were floated along the canals, and at most important pre-twentieth-century
more than 100,000 workers some 20 each stop, materials and riggings were influence on management. Why?
years to construct a single pyramid. added to the ship.2 Sounds a lot like a Because with the industrial age came
Someone had to plan what was to be car “floating” along an assembly line, the birth of the corporation. With large,
done, organize people and materials to doesn’t it? In addition, the Venetians 1776 efficient factories pumping out prod-
do it, make sure those workers got the used warehouse and inventory sys- Although this is an important date in ucts, someone needed to forecast de-
work done, and impose some controls tems to keep track of materials, human U.S. history, it’s also important because mand, make sure adequate supplies of
to ensure that everything was done as resource management functions to it’s the year Adam Smith’s Wealth of materials were available, assign tasks
planned. That someone was managers. manage the labor force (including wine Nations was published. In it, he ar- to workers, and so forth. Again, that
breaks), and an accounting system to gued the economic advantages of the someone was managers! It was indeed
keep track of revenues and costs. division of labor (or job specializa- a historic event for two reasons: (1) be-
tion)—that is, breaking down jobs into cause of all the organizational aspects
narrow, repetitive tasks. Using division (hierarchy, control, job specialization,
of labor, individual productivity could and so forth) that became a part of the
be increased dramatically. Job special- way work was done and (2) because
ization continues to be a popular way management had become a necessary
to determine how work gets done in or- component to ensure the success of
ganizations. As you’ll see in Chapter 5, the enterprise.
it does have its drawbacks.
54
H i st or y Module 55
Classical Approaches
Beginning around the turn of the twentieth century, the discipline of management began
to evolve as a unified body of knowledge. Rules and principles were developed that could
be taught and used in a variety of settings. These early management proponents were
called classical theorists.
Early Management Behavioral Approach Contemporary Approaches
• 1911–1947 1940s–1950s
3000 BCE–1776 Late 1700s–1950s 1960s–present

Classical Approaches Quantitative Approach
1911 1916–1947
That’s the year Frederick W. Taylor’s Principles Unlike Taylor, who focused on an individual
of Scientific Management was published. His production worker’s job, Henri Fayol and Max
groundbreaking book described a theory of Weber (depicted in the photo) looked at or-
scientific management—the use of scientific ganizational practices by focusing on what
methods to determine the “one best way” for a job managers do and what constituted good man-
Bettmann/Getty Images
to be done. His theories were widely accepted and agement. This approach is known as general
used by managers around the world, and Taylor administrative theory. Fayol was introduced
Hulton Archive/Getty Images
became known as the “father” of scientific man- in Chapter 1 as the person who first identified
agement.3 (Taylor’s work is profiled in Chapter 1’s five management functions. He also identified
“From the Past to the Present” box.) Other major 14 principles of management—fundamental
contributors to scientific management were Frank rules of management that could be applied to
and Lillian Gilbreth (early proponents of time-and- all organizations.4 (See Exhibit HM–1 for a list
motion studies and parents of the large family of these 14 principles.) Weber is known for his
described in the original book Cheaper by the description and analysis of bureaucracy, which
Dozen) and Henry Gantt (whose work on schedul- he believed was an ideal, rational form of orga-
ing charts was the foundation for today’s project nization structure, especially for large organiza-
management). tions. In Chapter 7, we elaborate on these two
important management pioneers.
Exhibit HM–1 Fayol’s 14 Principles of Management

1 Division of Work. This principle is the same as Adam Smith’s “di- sion making is centralized (to management) or decentralized (to
vision of labor.” Specialization increases output by making em- subordinates) is a question of proper proportion. The task is to
ployees more efficient. find the optimum degree of centralization for each situation.
2 Authority. Managers must be able to give orders. Authority gives 9 Scalar Chain. The line of authority from top management to
them this right. Along with authority, however, goes responsi- the lowest ranks represents the scalar chain. Communications
bility. Whenever authority is exercised, responsibility arises. should follow this chain. However, if following the chain creates
3 Discipline. Employees must obey and respect the rules that gov- delays, cross-communications can be allowed if agreed to by all
ern the organization. Good discipline is the result of effective parties and if superiors are kept informed. Also called chain of
leadership, a clear understanding between management and command.
workers regarding the organization’s rules, and the judicious 10 Order. People and materials should be in the right place at the
use of penalties for infractions of the rules. right time.
4 Unity of Command. Every employee should receive orders from 11 Equity. Managers should be kind and fair to their subordinates.
only one superior. 12 Stability of Tenure of Personnel. High employee turnover is
5 Unity of Direction. Each group of organizational activities that inefficient. Management should provide orderly personnel
have the same objective should be directed by one manager planning and ensure that replacements are available to fill
using one plan. vacancies.
6 Subordination of Individual Interests to the General Interest. The in- 13 Initiative. Employees who are allowed to originate and carry
terests of any one employee or group of employees should not out plans will exert high levels of effort.
take precedence over the interests of the organization as a whole. 14 Esprit de Corps. Promoting team spirit will build harmony and
7 Remuneration. Workers must be paid a fair wage for their services. unity within the organization.
8 Centralization. Centralization refers to the degree to which
subordinates are involved in decision making. Whether deci-

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Preface 14 Applying: Getting Ready for the Workplace

How Do Problems Differ? 75 What Does Society Expect from Organizations

Chapter 5 Managing Change and WHAT HAPPENS IN THE ENTREPRENEURIAL

What Are Some Criticisms of Formal Planning and How

What Contemporary OB Issues Face Managers? 378

New to This Edition

• Case Applications. 58 percent new.

Solving Teaching and Learning Challenges

Developing a “Management Sense”

The Think Like a Manager video series

Apply Concepts to the Real World

Making Ethical Decisions in

To help students apply management

NEW! Experiential Exercises are all

Developing Employability Skills

Boxed Features Highlight Opportunities to Develop Key Employability Skills.

Classic Concepts in Today’s Workplace help students to un-

◂ ◂ ◂ Classic Concepts in Today’s Workplace ▸ ▸ ▸

Making Ethical Decisions in Today’s Workplace

Walt Disney Company. Star Wars. Two powerful forces combined.

::::::: Managing Technology in Today’s Workplace :::::::

Managing Technology in Today’s Workplace describes how

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Expanded Module on Professionalism and Employability

Chapter by Chapter Changes

Chapter 1 History Module

• One new case (Panera Bread Company) Chapter 7

• Added “Topic” to Case Apps • New material on workplace design

Instructor Teaching Resources

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David Adams, Manhattanville College Edward A. Johnson, University of North Florida

DAVID A. DECENZO (Ph.D., West Virginia University) is president

Anyone who works

expect to be managers, they see spending a semester studying management as a

Who Are Managers and Where Do They Work?

What Three Characteristics Do All Organizations Share?

Exhibit 1–1 Three Characteristics of Organizations

Goals People Structure

characteristic is that people in an organization work to achieve those goals. How? By

What Titles Do Managers Have?

Exhibit 1–2 Management Levels team leaders

◂◂◂ Classic Concepts in Today’s Workplace ▸ ▸ ▸

Talk about an interesting way to be efficient!

4 Functions Approach Exhibit 1–4 Four Management Functions

Who: Henri Fayol—an engineer/executive at a