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![Creating Shared Value and Sustainable Development
Creating shared value and sustainable development represents a new approach to leading
and managing, which replaces more traditional forms of corporate social responsibility
(CSR). The core idea underlying the concept of creating shared value (CSV) is that compa-
nies can implement policies and operating practices that enhance the competitiveness of a
company while simultaneously advancing the economic and social conditions in the com-
munities in which they operate. As such, CSV results in an expanded “pie” or pool of value
for the firm as well as for society. This approach toward management is based on a greater-
good mentality in which the goals of a business involve more than making money. Execu-
tives are encouraged to make decisions that favorably impact all of their stakeholders. The
integrations take five forms:
• We introduce the concept in Chapter 1 while discussing the seven challenges to becoming
an exceptional manager. We define sustainable development and explain how the
193 members of United Nations adopted a set of 17 Sustainable Development Goals
(SDGs) in 2015.
• We reintroduce the concept in Chapter 2’s coverage of management history, in a section
that discusses contemporary approaches to managing and leading. Students will have a
clear understanding how this new approach fits within the historical evolution of
management thought.
• We provide further insight into the idea of CSV and sustainable development in Chapter
3 when discussing the social responsibilities required of managers. Students will learn
that sustainable development represents one form of social responsibility.
• We present a new Learning Module 1 titled “Shared Value and Sustainable Development:
A New Way to Think about Leading and Managing.” The module focuses on three
learning objectives: (1) describe how the concept of shared value improves upon the
traditional approach to corporate social responsibility, (2) discuss the roles various
stakeholders play in creating shared value, and (3) explain recommendations for creating
shared value in light of current progress and challenges.
• We weave examples in subsequent chapters when appropriate.
Sustainability is something our students will partake [in] one way or another in their careers. [Being]
better prepared = good employees.
—David Lanzilla,
College of Central Florida
“ ”
I think the ideas of CSR and Ethics need to be emphasized throughout the course. Students need to
see how it applies across business functions—not just study it as a standalone construct.
—Jake Heller,
Tarleton State University
“ ”
[This] book is widely adopted, strongly supported, . . . and comprehensive. [The] integrated career
readiness component to the materials bolsters what already is a strong product.
—Michael Shane Spiller,
Western Kentucky University
“ ”
viii New to the tenth edition](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-9-2048.jpg)
![Inclusiveness and Representativeness
The United States is wonderfully diverse in its ethnic, racial, gender, and age makeup. So are
our students. We want to celebrate the fact that some of the most innovative, powerful, and
brilliant leaders in modern organizations are women and people of color—groups that have
historically been underrepresented both in industry and in textbooks. Throughout this revision
your students will find a multitude of wonderful examples. For just a few illustrations, check
out the Example box on how Revolution Foods—founded by Kristin Richmond and Kirsten
Tobey—creates shared value on pages 136–37 of Learning Module 1; the feature on how Steph-
anie Lampkin—founder and CEO of Blendoor—is building Artificial Intelligence into the hir-
ing process on pages 398–99 in Chapter 9; and the story of the late Bernard Tyson—former
CEO of Kaiser Permanente—and his empowering leadership on page 628–29 of Chapter 14.
The tenth edition includes 165 examples of diverse individuals who have made a difference in
their organizations. We hope that each one of your students sees themselves represented in
this textbook.
Fully Revised Teaching Resource Manual 2.0 (TRM) Provides
Complete Guidance for Instructors
The TRM was initially developed to provide instructors with a turnkey solution for imple-
menting active learning with their students. It far exceeds traditional content covered in an
instructor’s manual by providing suggestions for creatively teaching topics, suggested videos
outside of the McGraw Hill arsenal (e.g., YouTube, The Wall Street Journal, etc.), group
exercises, lecture enhancers, and supplemental exercises that correspond with cases, videos,
Self-Assessments, and Application-Based Activities. The TRM has been praised by instruc-
tors around the world for its depth, navigation, and experiential-based content. Despite this
praise, we decided to undertake a major overhaul of the TRM based on (1) our reading of
several recent books that focus on teaching today’s students, and (2) feedback from faculty.
Moreover, our decision to overhaul the TRM also was based on our observation that
many of us do not have the time to learn and apply the techniques associated with active
learning. It takes knowledge, time, and effort to implement active learning in our classes,
particularly in a COVID environment in which many of us are teaching online for the first
time. We thus decided to further ease your preparation by developing new detailed lesson
plans that incorporate active learning for every chapter learning objective for both in-person
and online classes. These lesson plans are customized for each learning objective and draw
from a wide variety of Connect- and non-Connect-based resources. Our hope is that they
will assist you in increasing student engagement, developing career ready graduates, and
promoting higher-order thinking skills.
I incorporate sustainable business practices in all my course [and] the books I use do not cover it. I
love this idea! It’s about time!
—Jack Cichy,
Davenport University
“ ”
I like the idea of a higher-level concept of sustainable development. It lays the foundation of starting
a business with sustainability in mind from the beginning instead of needing to pivot later. And it
begins to build that foundation in the minds of the students as they develop their own ideals.
—Ronda Taylor,
Ivy Tech Community College
“
”
New to the tenth edition ix](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-10-2048.jpg)
![Completely revamped, revised, and updated
chapters
In each chapter, we refreshed examples, research, figures, tables, statistics, and photos, as
well as modified the design to accommodate new changes to this tenth edition. We also have
largely replaced topics in such popular features as Example boxes, Practical Action boxes,
Management in Action cases, and Legal/Ethical Challenge cases.
While the following list does not encompass all the updates and revisions, it does high-
light some of the more notable changes.
Finally, we provide new web video links for each chapter. These free, short videos allow
instructors to illustrate the practical applications of management principles. They are inte-
grated within the detailed lesson plans for each learning objective. We also include new
current online article links instructors can use to discuss material that supplements the text.
A very comprehensive TRM compared to the competitors. As a department chair, I strongly
recommend the TRM to my new adjuncts.
—Mark Zarycki,
Hillsborough Community College (Brandon)
“ ”
[The TRM] is perhaps the most comprehensive collection of material I have seen.
—Michael Bento,
Owens Community College
“ ”
CHAPTER 1
• Updated Manage U: Using Management Skills for College
Success.
• Section 1.1—New Example box on efficiency versus
effectiveness discusses how scientists are working to
address rising food demands and changing food preferences.
Revised discussion of the rewards of studying and practicing
management. Updated management pay statistics.
• Section 1.3—Revised Figure 1.2 to include team leaders.
Introduced “team leaders” as a new key term and added a
discussion of four key elements of successful teams. Updated
list of top managers. New examples of general managers.
New data in Managers for Three Types of Organizations.
• Section 1.4—Completely revised section on The Manager’s
Roles incorporating current research on how managers
spend their time.
• Section 1.5—Updated statistics in the Practical Action box on
developing soft skills.
• Section 1.6—Revised the layout and flow of entire section for
enhanced readability. Revised disussion of Managing for
Technological Advances (formerly Managing for Information
Technology. Updated e-commerce statistics. New Example
box about how direct-to-consumer genetics testing
companies have harnessed big data to disrupt the health
care industry. Updated discussion of Managing for Inclusion
and Diversity to replace “Managing for Diversity.” Updated
information on Christine Lagarde. Updated details on
Volkswagen emissions scandal. New example of Houston
Astros ethical scandal. Introduced new key term “sustainable
development” in revised discussion of Managing for
Sustainable Development (formerly Managing for
Sustainability) and the UN Sustainable Development Goals.
• Section 1.7—Major revision to this section included an
updated list of most attractive employers, new statistics on
students’ career readiness, a new model of career readiness,
and a new example of resilience featuring 2020 Heisman
Trophy winner Joe Burrow.
• Section 1.8—Updated Career Corner on Managing Your
Career Readiness with a new section on creating habits.
• New Management in Action case: Fast Fashion—Was Forever
21 Fast Enough?
x New to the tenth edition](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-11-2048.jpg)
![Walkthrough Preface of 10e
Kinicki/Breaux Soignet, Management: A Practical Introduction, 10e, empowers students to develop the
management career skills necessary in everyday life through the practical and relevant application of
theory. Developed to help students learn management with a purpose, Kinicki/Breaux Soignet 10e takes a
student-centered approach. The revision expands its strategic career readiness theme and includes new
coverage on the recently proposed management principle of creating shared value (CSV) and sustainable
development. The hallmark strengths that have made it the market best-seller have been maintained and
include:
• A student-centered approach to learning.
• Imaginative writing for readability and reinforcement.
• Emphasis on practicality.
• Resources that work.
Our product covers the principles that most management instructors have come to expect in an
introductory text—planning, organizing, leading, and controlling—plus current issues that students need to
be to be aware of to succeed: career readiness, customer focus, globalism, diversity, ethics, social media,
entrepreneurship, teams, innovation, artificial intelligence, big data, and person-organization fit.
The textbook does a good job covering the role of a manager. I would recommend [it] to any
instructor who is teaching the Principles of Management course.
—Jerry D. Stevens,
Texas Tech University
“ ”
Written with the modern student in mind. [This] book takes a very practical approach to
management theory (and) especially shows how it applies to (someone) just starting a career.
—William Belcher,
Troy University
“ ”
xix
Based on a wealth of instructor feedback and blending Angelo’s scholarship, teaching, publishing, and
management-consulting with Denise’s academic background and writing ability, we have worked tirelessly
to create a research-based yet highly readable, practical, and motivational product for the introductory
principles of management course. Our goal is to make a difference in the lives of you and your students.](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-20-2048.jpg)
![Chapter Openers
Each chapter begins with a list of key learning objectives that
appeal to students’ concern about “what’s in it for me?” and to
help them read with purpose.
Chapter Sections
Within each chapter, sections are organized according to the
major learning objectives. Generous use of headings and bulleted
lists provide students with bite-sized chunks of information to
facilitate retention. Each section begins with a recap of the
Learning Objective and includes The Big Picture, which
presents an overview of how the section addresses the stated
objective.
What’s Ahead in This Chapter
We describe planning and its link to strategy. We define planning, strategy,
and strategic management and state why they are important. We deal with
the fundamentals of planning, including the mission, vision, and value
statements, and the three types of planning—strategic, tactical, and opera-
tional. We consider goals, operating plans, and action plans; SMART goals,
management by objectives, and cascading goals; and finally the planning/
control cycle. We conclude with a Career Corner that focuses on how
you can develop the career readiness competency of proactive learning
orientation.
FORECAST
After reading this chapter, you should be able to:
LO 5-1 Discuss the role of strategic management.
LO 5-2 Compare mission, vision, and value
statements.
LO 5-3 Discuss the types and purposes of goals and
plans.
LO 5-4 Describe SMART goals and their
implementation.
LO 5-5 Outline the planning/control cycle.
LO 5-6 Describe how to develop the career readiness
competency of proactive learning orientation.
PART 3 • PLANNING
Planning
The Foundation of Successful Management
5
Kapook2981/iStock/Getty
Images
kin35168_ch05_178-207.indd 178 11/13/20 8:18 AM
46 PART 1 Introduction
“The best way to predict the future is to create it,” says Peter Drucker. Understanding
management history can assist you in determining the type of management style you
prefer in others and the type you want to adopt for yourself in the future. A good grasp
of management history also enables you to utilize a host of different managerial per-
spectives and techniques, thereby improving your ability to manage others.
Creating Modern Management: The Handbook
of Peter Drucker
Who is Peter Drucker? “He was the creator and inventor of modern management,” says
management guru Tom Peters (author of In Search of Excellence).7
Business.com sug-
gests that Drucker’s management theories “form the bedrock on which corporate
America was built.”8
An Austrian trained in economics and international law, Drucker came to the United
States in 1937, where he worked as a correspondent for British newspapers and later
became a college professor. In 1954, he published his famous text The Practice of Man-
agement, in which he proposed the important idea that management was one of the
major social innovations of the 20th century and should be treated as a profession, like
medicine or law.
In this and other books, he introduced several ideas that now underlie the organiza-
tion and practice of management:
■ Workers should be treated as assets.
■ The corporation could be considered a human community.
■ There is “no business without a customer.”
■ Institutionalized management practices are preferable to charismatic cult leaders.
Many ideas you will encounter in this book—decentralization, management by objec-
tives, knowledge workers—are directly traceable to Drucker’s pen (see the Example box
on Wegmans). In our time, Drucker’s rational approach has culminated in evidence-
based management, as we describe in Section 2.4 in this chapter.
LO 2-1
Describe the development
of current perspectives on
management.
2.1 Evolving Viewpoints: How We Got to Today’s
Management Outlook
THE BIG PICTURE
This section provides an overview of management history, starting with an overview of Peter Drucker’s four
fundamental principles of management. We also review six reasons for studying management theory.
True learner. In his 70-year
career, Peter Drucker published
more than 35 books and
numerous other publications,
received the U.S. Presidential
Medal of Freedom, and achieved
near rock-star status for his
management ideas. A true
learner who constantly
expanded his knowledge,
Drucker understood that new
experiences are key to nurturing
new ideas and new ventures. Do
you have this kind of curiosity?
Jonathan Alcorn/ZUMAPRESS/
Newscom
EXAMPLE Drucker’s Principles in Action: Wegmans Food Markets
Drucker’s principles are alive and well in many leading busi-
nesses today, including at Wegmans supermarket chain. The
organization has more than 100 locations and has been listed
as one of Fortune’s “Best Companies to Work For” 22 years in
a row. The company also boasts a 94% approval rating from
current and former employees who rated it on Glassdoor.9
Employees are ecstatic about Wegmans because the su-
permarket chain treats its workforce as assets. Every year, We-
gmans invests more than $50 million in employee scholarships,
cooking technique certifications, management trainee and
leadership development programs, and a whole host of other
initiatives. Employees can also take online training seminars
kin35168_ch02_044-073.indd 46 11/13/20 8:03 AM
Forecast
Shown below the learning objectives, the forecast provides
a high-level of summary of what is covered in the chapter.
The book is well organized and offers a good variety of resources and activities [that can be] used in
a face-to-face or online format.
—Patricia Lanier,
University of Louisiana at Lafayette
“ ”
The good problem to have with this book and related materials is that the resources available . . .
enhance student learning.
—Gerald Schoenfeld,
Florida Gulf Coast University
“ ”
xxii
Student-Centered Approach to Learning
Our writing style and product design is based on neuroscience research. Greater learning occurs when
information is “chunked” to keep student attention. We break down topics into easily digestible portions
with purposeful pedagogy to make theories and concepts easier to learn and apply. We made a concerted
effort to increase the amount of chunked material in 10e. This accounts for the use of purposeful color, an
extensive photo program, bulleted lists, and headings to appeal to the visual sensibilities, time constraints,
and diverse learning styles of today’s students.](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-23-2048.jpg)
![Research shows that products written in an imaginative, story-telling style significantly improve
students’ ability to retain information. We employ numerous journalistic devices to make the material
engaging and relevant to students lives.
xxiii
Example boxes
We utilize numerous Example boxes to
emphasize the practical applications of
business. These mini cases use snapshots of
real-world companies to explain text concepts.
“Your Call” questions stimulate class discussions
and help students develop their critical thinking
skills.
The Manager’s Changing Work Environment and Ethical Responsibilities CHAPTER 3 83
8. Financial Institutions Want to launch a small company? Although normally reluc-
tant to make loans to start-ups, financial institutions—banks, savings and loans, and credit
unions—may do so if you have a good credit history or can secure the loan with property
such as a house. You might also receive help from venture capitalists. Venture capital is
money provided by investors to start-up firms and small businesses with high risk but per-
ceived long-term growth potential, in return for an ownership stake.
During the Great Recession, when even good customers found loans hard to get, a new
kind of financing emerged called crowdfunding, raising money for a project or venture by
obtaining many small amounts of money from many people (“the crowd”), using websites
such as Kickstarter. We discuss crowdfunding further in Chapter 10.
Established companies also often need loans to tide them over when revenues are down
or to finance expansion, but they rely on lenders such as commercial banks, investment
banks, and insurance companies for assistance.
EXAMPLE Local Communities as Stakeholders: Does Amazon Really Need Tax Breaks?
Amazon is becoming one of Ohio’s largest employers,43
and in
Summer 2019 the company announced it would open two new
fulfillment centers in the state, bringing the state’s total num-
ber of Amazon fulfillment centers up to six.44
Since 2016 Ama-
zon has received more than $15.8 million in tax credits for its
facilities in Ohio. The city of Akron also plans to give Amazon
an estimated $17 million dollar tax rebate over 30 years in ex-
change for the company locating its facility there.45
Amazon’s tax breaks are not confined to Ohio. In fact, in
2019, Amazon saved at least $171.9 million dollars due to tax
incentives it received from its distribution centers across the
United States.46
These tax breaks are popular because “incen-
tives give companies the ability to shop around in various
states and ask for breaks,” said Adam Michel, Washington,
D.C.–based senior policy analyst. He added, “Because of the
perceived ability of these firms to choose somewhere else, a
lot of local governments feel pressure to give them sweetheart
deals to lure them to their locality.”47
Impacts on Local Economies. New physical facilities bring
great economic benefits according to Amazon and others who
support the use of tax incentives to lure companies to build ware-
houses and distribution centers in their locations. Amazon rea-
sons that across its six facilities in Ohio it will have created more
than 11,000 jobs in the state.48
The company also says that its
presence in Illinois has resulted in more than $4 billion worth of
investments in the state since 2010.49
Finally, Amazon estimates
that it has created at least 7,000 jobs in Illinois outside of
Amazon.50
Not everyone agrees that these tax incentives create jobs or
do much to boost local economies. And since Amazon’s infamous
decision to retreat from its planned second headquarters in New
York (which would have meant $3.4 billion in tax incentives and
grants for the company),51
lawmakers in at least seven states are
working on legislation aimed at outlawing these incentives.52
Some economists have warned that giving huge tax breaks
to incoming businesses does little more than rob cities of re-
sources needed by arguably more important entities like their
school, housing, and transportation systems. What’s more,
these systems also may need expensive upgrades and im-
provements to accommodate the huge influx of Amazon work-
ers moving in, and existing businesses and individual taxpayers
would end up footing the bill.53
San Jose, California, had been one of the cities vying for
Amazon’s second headquarters, but Mayor Sam Liccardo’s of-
fer made it clear that the e-commerce giant would receive no
tax incentives for locating there. He said, “If you’re offering
incentives, those are dollars you could use to be building out
transit . . . supporting an ecosystem of talent development.”54
Several studies suggest that tax incentives often fail to deliver
the benefits they promise, and that in some cases, tax breaks
may even harm employment growth and local economies.55
YOUR CALL
Do you think tax breaks for big companies like Amazon benefit
local communities? Should these companies continue to
receive tax breaks when they build new facilities? Why or
why not?
The Amazon Spheres at its urban campus in the Belltown
neighborhood of Seattle. Paul Christian Gordon/Alamy Stock Photo
kin35168_ch03_074-115.indd 83 11/13/20 9:22 AM
I devoted several weeks to reviewing textbooks. I started with 12, narrowed it down to 3
and Kinicki came up as my first choice. It is easy to read and not boring. Those are both
important to me.
—Mihran Aroian,
University of Texas at Austin
”
“
[Has the] right level of rigor for the course . . . contains a logical structure of material . . .
[and] current examples for students to relate to [their] course work.
—Jennifer Trout,
Rasmussen College
”
“
Imaginative Writing for Readability and Reinforcement](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-24-2048.jpg)
![Legal/Ethical Challenge cases Legal/
Ethical Challenge cases ask students to resolve
real ethical challenges faced by managers and
organizations. They help develop students’ critical
thinking and problem-solving skills around ethical
issues.
Boeing Continuing Case These new cases
ask students to synthesize and apply what
they’ve learned across the course to Boeing.
Based on reviewer feedback, we’ve introduced
these at the part level.
204 PART 3 Planning
1. What are planning, strategy, and strategic
management?
2. Why are they important?
3. What is the difference between a mission and a
vision, a mission statement and a vision statement?
4. What are three types of planning?
5. What are two types of goals?
6. What are SMART goals?
7. What is management by objectives?
8. What three things have to happen for MBO to be
successful?
9. Explain the planning/control cycle.
Understanding the Chapter: What Do I Know?
Amtrak Is on the Wrong Side of the Tracks
The National Railroad Passenger Corporation, better
known as Amtrak, began operations in 1971. The rail-
road has more than 20,000 employees and serves more
than 500 destinations in the United States and Canada
on more than 21,400 miles of track. Amtrak customers
took 32.5 million trips in 2019, setting a record year-
over-year increase of 800,000 passengers.72
Congress created Amtrak because private railroads
were failing. By the 1940s, rail travel became less popu-
lar as Americans chose buses, planes, and cars to get
around the country. Eventually, the U.S. government
consolidated the majority of passenger rail service un-
der Amtrak’s umbrella. The federal government is Am-
trak’s majority stockholder and guarantees its financial
support, but the company is operated as a for-profit or-
ganization rather than a government entity.
Though it was created to save an unprofitable rail-
road system, Amtrak itself has never earned a profit
since its inception. For example, the company lost $194
million and $170 million in 2017 and 2018, respectively.
Americans continue to choose other modes of trans-
portation over Amtrak, and government subsidies are
all that stand between the railroad and bankruptcy.73
Let’s take a closer look at what’s going on at
America’s only high-speed rail provider.
A LOSING MODEL
One of Amtrak’s biggest problems is its price. For ex-
ample, a four-hour Amtrak train from New York City to
Boston is more expensive than hopping on a one-hour
flight. Amtrak charges these high fares on popular
Northeastern routes because its other routes across the
country are either unprofitable or operating at a loss.74
According to Virginia Mercury, ridership may be able to
grow if Amtrak’s prices were reduced.75
Amtrak’s other challenge is America’s sheer size. It
is the fourth largest country in the world with 3.8 mil-
lion square miles of land. Compare this with Japan’s
rail service, which has to cover an area smaller than the
state of California. All of this rail needs maintenance
and repair, which Amtrak can’t afford. For example,
Management in Action
kin35168_ch05_178-207.indd 204 11/13/20 11:33 AM
The Exceptional Manager CHAPTER 1 43
To Delay or Not to Delay?
You have been hired by a vice president of a national
company to create an employee attitude survey, to ad-
minister it to all employees, and to interpret the re-
sults. You have known this vice president for more
than 10 years and have worked for her on several occa-
sions. She trusts and likes you, and you trust and like
her. You have completed your work and now are ready
to present the findings and your interpretations to the
vice president’s management team. The vice president
has told you that she wants your honest interpretation
of the results, because she is planning to make changes
based on the results. Based on this discussion, your
report clearly identifies several strengths and weak-
nesses that need to be addressed. For example, em-
ployees feel that they are working too hard and that
management does not care about providing good cus-
tomer service. At the meeting you will be presenting
the results and your interpretations to a group of 15
managers. You also have known most of these manag-
ers for at least five years.
You arrive for the presentation armed with slides,
handouts, and specific recommendations. Your slides
are loaded on the computer, and most of the partici-
pants have arrived. They are drinking coffee and telling
you how enthused they are about hearing your presen-
tation. You also are excited to share your insights.
Ten minutes before the presentation is set to begin,
however, the vice president takes you out of the meet-
ing room and says she wants to talk with you about
your presentation. The two of you go to another office,
and she closes the door. She then tells you that her
boss’s boss decided to come to the presentation unan-
nounced. She thinks that he is coming to the presenta-
tion to look solely for negative information in your
report. He does not like the vice president and wants to
replace her with one of his friends. If you present your
results as planned, it will provide this individual with
the information he needs to create serious problems for
the vice president. Knowing this, the vice president
asks you to find some way to postpone your presenta-
tion. You have 10 minutes to decide what to do.
SOLVING THE CHALLENGE
What would you do?
1. Deliver the presentation as planned.
2. Give the presentation but skip over the negative
results.
3. Go back to the meeting room and announce that your
spouse has had an accident at home and you must
leave immediately. You tell the group that you just re-
ceived this message and that you will contact the vice
president to schedule a new meeting.
4. Invent other options. Discuss.
Legal/Ethical Challenge
kin35168_ch01_002-043.indd 43 11/13/20 11:45 AM
Learn more about Boeing’s ethical responsibilities in a globalized world, and the impact its
decisions had on various stakeholders, including those outside the U.S.
Assess your ability to apply concepts discussed in Chapters 3 and 4 to the case by going to
Connect.
Boeing Continuing Case ®
kin35168_ch04_140-177.indd 177 11/13/20 11:36 AM
Management in Action cases Rather than
using stories about companies, the new
Management in Action cases now focus on higher
levels of learning by asking students to solve real
organizational problems using relevant
management concepts. They develop students’
core career readiness competencies of critical
thinking and problem solving.
I’m a huge fan of the self-assessments . . . they [make] students . . . think critically and
apply their learning . . . and also make [students] more open to learning if they recognize
a weakness in themselves. The overall applicability is so needed.
—Kathleen Gosser,
University of Louisville
”
“
xxv](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-26-2048.jpg)
![xxvii
This is the best text on the market, [especially] with Connect and the dense and varied
supporting materials available to instructors and students.
—Carol Bormann Young,
Metropolitan State University
”
“
McGraw Hill has accomplished a seamless delivery of theoretical and practical content
that can be used over multiple platforms [face-to-face, hybrid, and online].
—Lindy Archambeau,
University of Florida
”
“
This text is outstanding . . . [b]ut the additional resources provided to help us teach make
it number one in my book. Connect, the test banks, the teacher resources, the relevant
examples, the videos, and case studies make this a very easy and fun course to teach.
I usually spend weeks finding my own relevant content. [The authors] have done this
for me.
—Kathleen Gosser,
University of Louisville
”
“](https://image.slidesharecdn.com/4-251202214057-d5232169/75/Management-A-Practical-Introduction-10th-edition-28-2048.jpg)
Management A Practical Introduction 10th edition
- 1. This International StudentEdition is for use outside of the U.S. Management 10e A Practical Introduction Angelo Kinicki Denise Breaux Soignet
- 2. management T E NT H E D I T I O N a practical introduction Angelo Kinicki Arizona State University Kent State University Denise Breaux Soignet University of Arkansas
- 3. MANAGEMENT Published by McGrawHill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2022 by McGraw Hill Education. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, with- out the prior written consent of McGraw Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 LWI 26 25 24 23 22 21 ISBN 978-1-265-01775-0 MHID 1-265-01775-1 Cover Image: Kapook2981/iStock/Getty Images All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw Hill Education, and McGraw Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered
- 4. iii Walkthrough Preface of10e xix PART 1 Introduction 1 The Exceptional Manager: What You Do, How You Do It 2 2 Management Theory: Essential Background for the Successful Manager 44 PART 2 The Environment of Management 3 The Manager’s Changing Work Environment and Ethical Responsibilities: Doing the Right Thing 74 Learning Module 1: Shared Value and Sustainable Development: A New Way to Think about Leading and Managing 116 4 Global Management: Managing across Borders 140 PART 3 Planning 5 Planning: The Foundation of Successful Management 178 6 Strategic Management: How Exceptional Managers Realize a Grand Design 208 Learning Module 2: Entrepreneurship 244 7 Individual and Group Decision Making: How Managers Make Things Happen 266 PART 4 Organizing 8 Organizational Culture and Structure: Drivers of Strategic Implementation 312 9 Human Resource Management: Getting the Right People for Managerial Success 360 10 Organizational Change and Innovation: Lifelong Challenges for the Exceptional Manager 416 PART 5 Leading 11 Managing Individual Differences and Behavior: Supervising People as People 456 12 Motivating Employees: Achieving Superior Performance in the Workplace 510 13 Groups and Teams: Increasing Cooperation, Reducing Conflict 562 14 Power, Influence, and Leadership: From Becoming a Manager to Becoming a Leader 596 15 Interpersonal and Organizational Communication: Mastering the Exchange of Information 640 PART 6 Controlling 16 Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness 694 brief contents Appendix 741 Chapter Notes CN-1 Name Index IND1 Organization Index IND6 Glossary/Subject Index IND10
- 5. iv Angelo Kinicki isan emeritus professor of management and held the Weath- erup/Overby Chair in Leadership from 2005 to 2015 at the W. P. Carey School of Business at Arizona State University. He joined the faculty in 1982, the year he received his doctorate in business administration from Kent State University. He was inducted into the W. P. Carey Faculty Hall of Fame in 2016. Angelo currently is the Dean’s Scholar in Residence at Kent State University. He is conducting seminars on the implementation of active learning in the classroom and publishing scholarly research. He also serves on the Dean’s National Advisory Board. Angelo is the recipient of six teaching awards from Arizona State University, where he taught in its nationally ranked undergraduate MBA and PhD programs. He also received several research awards and was selected to serve on the editorial review boards for four scholarly journals. His current research interests focus on the dynamic relationships among leadership, organizational culture, organizational change, and individual, group, and organizational performance. Angelo has pub- lished over 95 articles in a variety of academic journals and proceedings and is co- author of eight textbooks (37 including revisions) that are used by hundreds of universities around the world. Several of his books have been translated into multi- ple languages, and two of his books were awarded revisions of the year by McGraw Hill. Angelo was identified as being among the top 100 most influential (top .6%) Organizational Behavioral authors in 2018 out of a total of 16,289 academics. Angelo is a busy international consultant and co-founder of Kinicki and Associates, Inc., a management consulting firm that works with top management teams to create organizational change aimed at increasing organizational effectiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse indus- tries. His expertise includes facilitating strategic/operational planning sessions, diagnosing the causes of organizational and work-unit problems, conducting organizational culture inter- ventions, implementing performance management systems, designing and implementing per- formance appraisal systems, developing and administering surveys to assess employee attitudes, and leading management/executive education programs. He developed a 360° leadership feedback instrument called the Performance Management Leadership Survey (PMLS) that is used by companies throughout the world. Angelo and his wife of 39 years, Joyce, have enjoyed living in the beautiful Arizona desert for 38 years. They are both natives of Cleveland, Ohio. They enjoy traveling, hiking, and spending time in the White Mountains with Gracie, their adorable golden retriever. Angelo also has a passion for golfing. Denise Breaux Soignet is an associate teaching professor of management and direc- tor of the Tyson Center for Faith and Spirituality in the Workplace at the Sam M. Walton College of Business at the University of Arkansas. She joined the University of Arkansas faculty in 2010 after receiving her PhD in business administration from Florida State University. Denise has received awards both for her teaching and her work to promote inclusion and diversity within the university and professional communities. She has taught courses in the Walton College’s nation- ally ranked undergraduate and MBA programs, has developed several online undergraduate courses for her department, and sees active learning as a key component of all of her courses, about the authors
- 6. both face-to-face andonline. Denise’s research interests include dysfunctional workplace behav- ior, inclusion and diversity, leadership, social influence, and job stress, and her work has been published in multiple premier management journals. Denise is a Certified Professional for the Society for Human Resource Management, and she consults with public- and private-sector organizations. Her expertise includes diagnosing the causes of interpersonal problems in the workplace, implementing management solutions that enhance the quality of supervisor-subordinate relationships, assessing workplace reli- gious inclusion and tolerance, and designing and delivering organizational learning and devel- opment programs. She also has specialized expertise in resolving the unique interpersonal challenges that arise in poultry production and has years of experience working with manag- ers and technicians at some of the industry’s largest firms. Denise lives in Northwest Arkansas with her husband, Joe, and their two children. They are natives of South Louisiana and Cajuns at heart. They enjoy watching their two favorite football teams—the New Orleans Saints (WHO DAT!) and the Nicholls State University Colonels—and can often be found making food and cocktails for friends, gardening, listening to jazz, and traveling with their kids. About the authors v Cydney A. Soignet
- 7. dedication To Joyce Kinicki,the love of my life, best friend, and the wind beneath my wings. —Angelo To A and G, my everything. May you always make good choices, be kind to others, and have fun. —Mom vi
- 8. new to thetenth edition It all begins with a new author team This edition brings a 22-year collaboration between Brian Williams and me (Angelo Kinicki) to an end. It was a great partnership and I am proud of what we accomplished and the stu- dent lives we influenced over the years. I am very excited about the future and would like to introduce my new co-author, Dr. Denise Breaux Soignet. Based on my 36 years of textbook writing experience, I selected Denise because she possesses all the skills and traits I desire in a co-author. Her content knowledge is vast and stems from exceptional training from academic scholars such as Dr. Pam Perrewé, Dr. Jerry Ferris, and Dr. Ben Tepper. She also is a beautiful writer and an outstanding teacher. She cares deeply about teaching and help- ing students, and this passion comes through in her commitment to our work. Denise is smart, humble, driven, honest, and hard working. She also pushes back and challenges me when needed. Finally, I like Denise and she’s fun to work with. I can’t ask for anything more in a co-author. We are pleased to share these exciting new additions and updates! All of our changes are based on the goal of providing the most up-to-date theory, research, and practical examples. For instance, we have used 56 examples to illustrate the application of management principles to the context of managing COVID-19 and the associated pan- demic of 2020. We also wrote 13 new Management in Action chapter closing cases and replaced or updated 15 of our Legal/Ethical Challenge cases. The tenth edition incorporates four major changes. The first entailed updating and extending our strategic theme regarding career readiness. The second involved integrated coverage regarding the concepts of creating shared value and sustainable development. The third was to increase the extent to which our examples were inclusive and representative of the diverse body of today’s managers, not to mention the diversity of our students. The final change involved an overhaul of our Teaching Resource Manual 2.0 (TRM). Below is a review of these substantive changes. Updated and Expanded Coverage of Career Readiness Our ninth edition was the first textbook to introduce a strategic theme on career readiness. Our goal was to help students develop their career readiness competencies so that they would be more employable upon graduation. This was an important theme because research shows that employers believe college graduates are not career ready. We have expanded this theme in the tenth edition. Our first change involved refining our model of career readiness in Chapter 1 based on recent research findings. The new model starts with seven core competencies—a set of competencies that are vital across jobs, occupations, and industries. We then categorize 20 additional career readiness competencies into four categories: knowledge, soft skills, atti- tudes, and other characteristics (KSAOs, see Figure 1.4). We have also taken great effort in this edition to link career readiness competencies to their respective chapter content. For example, Table 7.2 illustrates the career readiness competencies needed to effectively use big data across managerial levels. vii
- 9. Creating Shared Valueand Sustainable Development Creating shared value and sustainable development represents a new approach to leading and managing, which replaces more traditional forms of corporate social responsibility (CSR). The core idea underlying the concept of creating shared value (CSV) is that compa- nies can implement policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the com- munities in which they operate. As such, CSV results in an expanded “pie” or pool of value for the firm as well as for society. This approach toward management is based on a greater- good mentality in which the goals of a business involve more than making money. Execu- tives are encouraged to make decisions that favorably impact all of their stakeholders. The integrations take five forms: • We introduce the concept in Chapter 1 while discussing the seven challenges to becoming an exceptional manager. We define sustainable development and explain how the 193 members of United Nations adopted a set of 17 Sustainable Development Goals (SDGs) in 2015. • We reintroduce the concept in Chapter 2’s coverage of management history, in a section that discusses contemporary approaches to managing and leading. Students will have a clear understanding how this new approach fits within the historical evolution of management thought. • We provide further insight into the idea of CSV and sustainable development in Chapter 3 when discussing the social responsibilities required of managers. Students will learn that sustainable development represents one form of social responsibility. • We present a new Learning Module 1 titled “Shared Value and Sustainable Development: A New Way to Think about Leading and Managing.” The module focuses on three learning objectives: (1) describe how the concept of shared value improves upon the traditional approach to corporate social responsibility, (2) discuss the roles various stakeholders play in creating shared value, and (3) explain recommendations for creating shared value in light of current progress and challenges. • We weave examples in subsequent chapters when appropriate. Sustainability is something our students will partake [in] one way or another in their careers. [Being] better prepared = good employees. —David Lanzilla, College of Central Florida “ ” I think the ideas of CSR and Ethics need to be emphasized throughout the course. Students need to see how it applies across business functions—not just study it as a standalone construct. —Jake Heller, Tarleton State University “ ” [This] book is widely adopted, strongly supported, . . . and comprehensive. [The] integrated career readiness component to the materials bolsters what already is a strong product. —Michael Shane Spiller, Western Kentucky University “ ” viii New to the tenth edition
- 10. Inclusiveness and Representativeness TheUnited States is wonderfully diverse in its ethnic, racial, gender, and age makeup. So are our students. We want to celebrate the fact that some of the most innovative, powerful, and brilliant leaders in modern organizations are women and people of color—groups that have historically been underrepresented both in industry and in textbooks. Throughout this revision your students will find a multitude of wonderful examples. For just a few illustrations, check out the Example box on how Revolution Foods—founded by Kristin Richmond and Kirsten Tobey—creates shared value on pages 136–37 of Learning Module 1; the feature on how Steph- anie Lampkin—founder and CEO of Blendoor—is building Artificial Intelligence into the hir- ing process on pages 398–99 in Chapter 9; and the story of the late Bernard Tyson—former CEO of Kaiser Permanente—and his empowering leadership on page 628–29 of Chapter 14. The tenth edition includes 165 examples of diverse individuals who have made a difference in their organizations. We hope that each one of your students sees themselves represented in this textbook. Fully Revised Teaching Resource Manual 2.0 (TRM) Provides Complete Guidance for Instructors The TRM was initially developed to provide instructors with a turnkey solution for imple- menting active learning with their students. It far exceeds traditional content covered in an instructor’s manual by providing suggestions for creatively teaching topics, suggested videos outside of the McGraw Hill arsenal (e.g., YouTube, The Wall Street Journal, etc.), group exercises, lecture enhancers, and supplemental exercises that correspond with cases, videos, Self-Assessments, and Application-Based Activities. The TRM has been praised by instruc- tors around the world for its depth, navigation, and experiential-based content. Despite this praise, we decided to undertake a major overhaul of the TRM based on (1) our reading of several recent books that focus on teaching today’s students, and (2) feedback from faculty. Moreover, our decision to overhaul the TRM also was based on our observation that many of us do not have the time to learn and apply the techniques associated with active learning. It takes knowledge, time, and effort to implement active learning in our classes, particularly in a COVID environment in which many of us are teaching online for the first time. We thus decided to further ease your preparation by developing new detailed lesson plans that incorporate active learning for every chapter learning objective for both in-person and online classes. These lesson plans are customized for each learning objective and draw from a wide variety of Connect- and non-Connect-based resources. Our hope is that they will assist you in increasing student engagement, developing career ready graduates, and promoting higher-order thinking skills. I incorporate sustainable business practices in all my course [and] the books I use do not cover it. I love this idea! It’s about time! —Jack Cichy, Davenport University “ ” I like the idea of a higher-level concept of sustainable development. It lays the foundation of starting a business with sustainability in mind from the beginning instead of needing to pivot later. And it begins to build that foundation in the minds of the students as they develop their own ideals. —Ronda Taylor, Ivy Tech Community College “ ” New to the tenth edition ix
- 11. Completely revamped, revised,and updated chapters In each chapter, we refreshed examples, research, figures, tables, statistics, and photos, as well as modified the design to accommodate new changes to this tenth edition. We also have largely replaced topics in such popular features as Example boxes, Practical Action boxes, Management in Action cases, and Legal/Ethical Challenge cases. While the following list does not encompass all the updates and revisions, it does high- light some of the more notable changes. Finally, we provide new web video links for each chapter. These free, short videos allow instructors to illustrate the practical applications of management principles. They are inte- grated within the detailed lesson plans for each learning objective. We also include new current online article links instructors can use to discuss material that supplements the text. A very comprehensive TRM compared to the competitors. As a department chair, I strongly recommend the TRM to my new adjuncts. —Mark Zarycki, Hillsborough Community College (Brandon) “ ” [The TRM] is perhaps the most comprehensive collection of material I have seen. —Michael Bento, Owens Community College “ ” CHAPTER 1 • Updated Manage U: Using Management Skills for College Success. • Section 1.1—New Example box on efficiency versus effectiveness discusses how scientists are working to address rising food demands and changing food preferences. Revised discussion of the rewards of studying and practicing management. Updated management pay statistics. • Section 1.3—Revised Figure 1.2 to include team leaders. Introduced “team leaders” as a new key term and added a discussion of four key elements of successful teams. Updated list of top managers. New examples of general managers. New data in Managers for Three Types of Organizations. • Section 1.4—Completely revised section on The Manager’s Roles incorporating current research on how managers spend their time. • Section 1.5—Updated statistics in the Practical Action box on developing soft skills. • Section 1.6—Revised the layout and flow of entire section for enhanced readability. Revised disussion of Managing for Technological Advances (formerly Managing for Information Technology. Updated e-commerce statistics. New Example box about how direct-to-consumer genetics testing companies have harnessed big data to disrupt the health care industry. Updated discussion of Managing for Inclusion and Diversity to replace “Managing for Diversity.” Updated information on Christine Lagarde. Updated details on Volkswagen emissions scandal. New example of Houston Astros ethical scandal. Introduced new key term “sustainable development” in revised discussion of Managing for Sustainable Development (formerly Managing for Sustainability) and the UN Sustainable Development Goals. • Section 1.7—Major revision to this section included an updated list of most attractive employers, new statistics on students’ career readiness, a new model of career readiness, and a new example of resilience featuring 2020 Heisman Trophy winner Joe Burrow. • Section 1.8—Updated Career Corner on Managing Your Career Readiness with a new section on creating habits. • New Management in Action case: Fast Fashion—Was Forever 21 Fast Enough? x New to the tenth edition
- 12. CHAPTER 2 • UpdatedManage U: What Type of Work Environment Do I Prefer? • Section 2.1—New Example box explores the success of Wegmans Food Markets based on its employee- and customer-focused management. New Figure 2.1 depicts the progression of management perspectives. • Section 2.2—Expanded coverage of Lillian Gilbreth’s contribution to management science. • Section 2.3—Updated Example box discussing open-plan offices and their impact on productivity. • Section 2.4—This section was revised to include new coverage of evidence-based management and a new Practical Action box that discusses big data’s role in evidence-based management. • Section 2.5—New Example box illustrates how U.S. Steel uses systems theory to stay competitive. • Section 2.6—Updated Example box applying the contingency viewpoint with manufacturers “pitching” jobs to parents of college students hoping they’ll influence their children to consider open positions after high school graduation. • Section 2.7—The old 2.7 was replaced with a new section, titled “Contemporary Approaches: The Learning Organization, High-Performance Work Practices, and Sustainable Management.” Learning organizations were previously discussed in Section 2.8, and content on high- performance work practices and sustainable management is new. New Example box discusses three organizations that exhibit high-performing work practices. Shifted content on quality management to Chapter 16. • Section 2.8—Updated Career Corner on Managing Your Career Readiness • New Management in Action case: Vegan Leather: Earth’s Friend or Foe? • Updated Legal/Ethical Challenge: What Should You Do about an Insubordinate Employee? CHAPTER 3 • New Manage U: Being Courageous at Work. • Section 3.1—Updated discussion of the triple bottom line. New statistics regarding younger workers and their search for meaning. • Section 3.2—Various content updates, including new examples of employees as internal stakeholders and an employee-owned company. Updated statistics on sole proprietorships. Updated research regarding gender diversity on boards of directors. • Section 3.3— Reconfigured multiple sections throughout for enhanced readability. Updated statistics regarding unions, unemployment, demographic forces, sociocultural forces, and the use of drones. Updated Example box discusses Amazon’s tax breaks. Updated Example box illustrates the Dark Side of Technology. Updated figure showcases the states in which marijuana is legal. Various content updates, including company examples for international forces, special interest groups, strategic allies, and competing firms, and an updated list of “America’s Most Hated Companies.” • Section 3.4—Revised introduction with new example on Bombas. Updated Example box featuring Volkswagen and ethics. Redesigned section on ethics and values, including an updated list of the six most common types of ethical misconduct at work and multiple new company examples. Updated discussion of how people learn ethics. New examples of recent SarbOx cases, white-collar crime, conflict of interest, and workplace cheating. New Figure 3.3 on global rates of unethical workplace behavior. • Section 3.5—Updated Example box on CSR at Salesforce. Updated statistics on CEO dismissals and Bill and Melinda Gates. Updated Table 3.1 with current statistics that show how being ethically and socially responsible pays off. • Section 3.6—New content on board characteristics, social responsibility, and firms’ ethical behaviors/reputations. Introduction of new key term: CSR contracting. New Example box on corporate governance failure at Theranos. • New Management in Action case: Who’s to Blame for the College Admissions Scandal? • Updated Legal/Ethical Challenge: Should You Apply to Have Your Student Loans Forgiven? NEW: LEARNING MODULE 1: SHARED VALUE AND SUSTAINABLE DEVELOPMENT This material is new to the tenth edition: • Manage U: How Can You Contribute to a More Sustainable Future? • Section LM 1.1—Introduces the concept of creating shared value (CSV) and explains how it differs from traditional CSR. Figure LM 1.1 introduces a model of shared value creation. A discussion of the new figure includes timely examples that illustrate how organizations create shared value. New Example boxes on shared value creation at Williams-Sonoma and the Campbell Soup Company. • Section LM 1.2—Discusses the various stakeholders that play a role in CSV, including big and small businesses, entrepreneurs, and business schools. Includes timely examples woven throughout to illustrate the roles of different stakeholders in CSV. Figure LM 1.2 summarizes the UN Sustainable Development Goals (SDGs). New Example box on how the Bill and Melinda Gates Foundation encourages private-sector engagement with the UN SDGs. New Example box on how the start-up Ricult is pursuing CSV to empower rural farmers in developing countries. • Section LM 1.3—Explores the progress made to date on CSV and the challenges that lie ahead for organizations that wish to pursue shared value creation. Provides recommendations New to the tenth edition xi
- 13. for how firmscan tackle these challenges and forge ahead with CSV. Includes timely company examples woven throughout to illustrate the progress, challenges, and recommended solutions in CSV. New Example box on CSV at Revolution Foods. CHAPTER 4 • Updated Manage U: Working Successfully Abroad: Developing Cultural Awareness. • Section 4.1—Updated section opener with new statistics regarding U.S. imports in 2018. Updated Table 4.1 and corresponding content with competitiveness rankings for 2019. Updated Example box featuring international e-commerce company Alibaba. • Section 4.2—Updated Example box discussing how to get an edge in the global job market. • Section 4.3—Updated discussion on the foreign manufacturing of Apple products. An updated discussion of why companies expand internationally, including Coca-Cola, Costco, and China Investment Company. Updated examples for how companies expand internationally. Updated examples of global outsourced jobs, including an updated Table 4.2 with top exporting countries through 2018. Updated list of U.S. companies opening franchises overseas, including McDonald’s and Marriott. • Section 4.4—Updated Table 4.3 with the U.S.’s top ten trading partners through 2019. Updated content regarding tariffs with a discussion of the Trump administration as well as updated content pertaining to import quotas, dumping, and embargoes and sanctions. Updated table featuring organizations promoting international trade. Updated discussion on NAFTA and USMCA, the EU, and other trading blocs. Updated Example box to showcase the exchange rates on various common products like rent, movie tickets, and designer jeans. Updated statistics for major economies, including China, India, Brazil, Russia, and South Africa. • Section 4.5—An updated discussion on language and personal space with a discussion on learning foreign language online and through apps. Updated Practical Action box discussing how to run an international meeting. Updated examples of expropriation, corruption, and labor abuses. An updated discussion on expatriates and why U.S. managers often fail. • Section 4.6—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: The Isolation of a Global Giant, which discusses Huawei. • Updated Legal/Ethical Challenge: Should Qatar Be Hosting the 2022 World Cup? CHAPTER 5 • Updated Manage U: Start Your Career Off Right by Planning. • Section 5.1—New Example box on Burger King’s turnaround on the back of effective planning. • Section 5.2—Value statement content has been updated with an example from SurveyMonkey. Updated Example box on Coca-Cola includes the company’s mission, vision, and values statements. An updated Example box discusses Coca-Cola’s six long-term strategies. • Section 5.3—Updated Example box pertaining to long- and short-term goals at Southwest Airlines. New section on executing plans with examples from Katerra and Handshake. • Section 5.4—Updated table on the three types of objectives used in MBO. Updated Practical Action box on small businesses and goal setting. • Section 5.5—New Example box applying the planning/control cycle through Pacific Gas and Electric Company. • Section 5.6—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: Amtrak Is on the Wrong Side of the Tracks. • Updated Legal/Ethical Challenge: Are Profits More Important than Alzheimer’s Patients? CHAPTER 6 • Updated Manage U: Your Personal Brand Requires a Strategy. • Section 6.1—New examples from Amazon, Fiat, and Dunkin Donuts portraying the levels of strategy. Updated Example box illustrating strategic planning at Evernote and Groove HQ. • Section 6.2—Updated opening with coverage of Toyota’s 2020 recalls. New examples from Microsoft for each of the five steps of the strategic management process. • Section 6.3—Updated figure on SWOT analysis by changing verbiage to more closely link with organizational environment coverage in Chapter 3. Updated Example box using SWOT to analyze Toyota. Updated VRIO examples with a focus on Toyota. New Example box on Walmart’s expansion to India through its purchase of Flipkart. New Figure 6.5 compares benchmarks for nine U.S. airlines. • Section 6.4—New examples from Lululemon, Tabasco, and Bombardier for corporate strategy. Updated Dell example for discussion of the BCG Matrix. • Section 6.5—New examples from Netflix to describe Porter’s five competitive forces. New examples from companies such as Warby Parker and Viking Cruises to portray Porter’s four competitive strategies. New section focuses on an executive’s approach toward strategy development. We featured Jack Welch’s approach toward strategy development. • Section 6.6—Renamed Strategic Implementation: Creating, Executing, and Controlling Functional-Level Strategies. The section starts with a discussion of functional strategy using a new Figure 6.7 depicting strategic implementation at Kroger. New examples from Costco and Kroger portraying the three xii New to the tenth edition
- 14. core processes ofbusiness. New content on execution roadblocks as well as an updated Practical Action box on fueling execution in the workplace. • Section 6.7—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: La Croix is Losing the Sparkling Water Wars. • Updated Legal/Ethical Challenge: Is Your School Selling Your Bank Accounts? LEARNING MODULE 2: ENTREPRENUER SHIP (Formerly Learning Module 1) • Updated Manage U: So You Want to Start a Business? • Section LM 2.1—New content on social entrepreneurship, highlighting it as a new key term and linking it to the concept of creating shared value. New Example box on Two Blind Brothers, a business that is making a profit and doing good at the same time. Updated with new research and new characteristic of positive intentions and attitudes. Updated small business giants from 2019. Updated Table LM 2.1 with current facts about small businesses. • Section LM 2.2—New content on franchising that includes its advantages, disadvantages, and how to start one. Updated content on choosing a legal structure. Updated Example box featuring the start and growth of a small business. New content on why entrepreneurial ventures fail, including an introduction of four common themes. CHAPTER 7 • Updated Manage U: How to Make Good Decisions. Includes a new section on how mindfulness can help managers make better decisions. • Section 7.1—Updated Example box on how Starbucks used decision making to overcome a crisis. Expanded content on nonrational decision making with addition of hubris as a key term. We also updated Figure 7.2 regarding hindrances to perfectly rational decision making and provided new examples on Carlos Ghosn and Hallmark. Updated research and examples on intuition with updates to Example box on the power of intuition and Practical Action box on how to improve intuition. • Section 7.2—Expanded content on business ethics that includes a new Figure 7.3 portraying reasons for CEO departures, updated examples of ethical lapses, and new research. • Section 7.3—Begins with a new discussion of evidence- based decision making and career readiness. New examples of companies using evidenced-based decision making. Updated Example box on using analytics in sports. Expanded coverage of big data with new examples from companies such as Coca-Cola, Credit Suisse, Unilever, and Dallas County. A new Table 7.2 Illustrates the use of big data at different levels of an organization, and there is a new Example box on Banco Bilbao Vizcaya Argentaria. • Section 7.4—Content on decision-making styles was moved to Section 7.5, and this section was renamed “Artificial Intelligence Is a Powerful Decision-Making Resource.” This new section starts with a discussion of autonomous devices and artificial intelligence using examples from Home Depot. New Table 7.3 demonstrates the types of AI used at six companies, including Ford, Liberty Mutual, and Amtrak. New Figure 7.5 shows the benefits of AI, and a new Practical Action box describes how career readiness skills can facilitate collaboration with robots. • Section 7.5—Content on decision-making biases was moved to Section 7.6. This section now includes the four general decision-making styles, which was formerly Section 7.4. New examples of leaders portraying different leadership styles, including Terry Jimenez, Ursula Burns, Bob Iger, and Larry Sutton. • Section 7.6—Content on group decision making was moved to Section 7.7 and this section was renamed “Decision- Making Biases.” Biases were updated with new examples and research, as well as the addition of a tenth bias known as the categorical thinking bias. • Section 7.7—This section now includes group decision making. “Sham participation” is introduced as a new key term under disadvantages of group decision making. New research on characteristics of group decision making. Updated table on the seven rules for brainstorming. Expanded content on project post-mortems, including new research. • Section 7.8—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: Juul Is Going Up in Smoke. • Updated Legal/Ethical Challenge: Should Emotional Support Pets Be Treated the Same as Service Animals? CHAPTER 8 • Updated Manage U: How to Get Noticed in a New Job: Fitting into an Organization’s Culture in the First 60 Days • Section 8.1—A new section title, “Aligning Culture, Structure, and Human Resource (HR) Practices to Support Strategy,” was used to replace the previous title, “Aligning Strategy, Culture, and Structure.” A new Figure 8.1 depicts how an organization’s culture, structure, and HR practices support strategic implementation. This figure informs content and discussions throughout the chapter. New discussions of HR practices and how leadership creates alignment between culture, structure, and HR practices. Various content updates including new company examples of HR practices, leadership as a force for alignment, organizational culture, and organizational structure. New Example box on how Patagonia aligns culture, structure, and HR practices to support its strategy. New to the tenth edition xiii
- 15. • Section 8.2—Reconfiguredordering of the discussion within this section for enhanced flow. Introduced new Figure 8.2 on the levels of organizational culture. Updated Figure 8.4: What organizational variables are associated with organizational cultures? Revised discussion of Figure 8.4. A new section titled “Preparing to Assess P-O Fit Before a Job Interview,” was used to replace the section previously titled “What Does It Mean to ‘Fit’?” Various content updates, including new examples of each of the three levels of culture; the various ways employees learn culture; clan, market, and hierarchy cultures; and person-organization fit. New Figure 8.4 shows meta-analytic relationships between organizational culture and various antecedents and outcomes. • Section 8.3—This section was refocused to highlight the fact that organizations use multiple change levers simultaneously to create culture change. New examples of 10 of the 12 mechanisms for culture change are presented. New Example box on how Dr. Li Wenliang used the power of a story to change culture. New Example box on how Total used multiple culture change mechanisms to improve its safety culture. • Section 8.4—Shifted the language used throughout this section (previously Section 8.5) to refer to the “features” of an organization rather than the “elements” of an organization. Restructured discussion of authority and centralization versus decentralization for enhanced readability. New Figure 8.5 illustrates the concept of span of control. Moved Figure 8.6 (organization chart) to this section. • Section 8.5—Previously Section 8.6, updated title from “Basic Types of Organizational Structure” to “Eight Types of Organizational Structure.” Updated Example box on Whole Foods Market’s use of a horizontal design. Various content updates including a revised Figure 8.10 on matrix structure and new company examples of modular and virtual structures. • Section 8.6—Updated Career Corner on Managing Your Career Readiness (formerly Section 8.7). New examples of companies that displayed adaptability. • Updated Management in Action case: Wells Fargo’s Sales Culture Fails the Company. • Updated Legal/Ethical Challenge: Should Socializing Outside Work Hours Be Mandatory? CHAPTER 9 • Updated Manage U: How to Prepare for a Job Interview. • Section 9.1—This section was completely rewritten. Our goal was to explain how HR practices can generate superior firm performance and competitive advantage. The section starts with a new Figure 9.1 that depicts a set of five generic HR practices and illustrates them with examples from multiple companies. A new section discusses how Internal and External HR Fit Promote Strategic HRM and centers on a new Figure 9.2 that shows how HR practices, in combination with organizational culture and organizational structure, drive successful strategic implementation. New key term, “strategic HRM”, and a new example of a company that practices strategic HRM. Updated discussion of human and social capital. New discussion of two approaches to strategic HRM complete with multiple new company examples. New Example box on how T-Mobile used strategic HRM in its customer service function. New examples of HR practices at some of Fortune’s best places to work. • Section 9.2—New statistics on the costs of recruitment and selection. Reconfigured sections on recruitment and selection, including multiple new company examples; new data on the use of background information; a new section discussing how Fit figures into recruitment; and three new key terms: “boomerangs,” “employee referrals,” and “person-job fit.” Updated Example box discussing the lies job applicants tell. Updated Example box listing the pros and cons of personality tests and updated information on personality tests. New discussion on the use of criminal and financial background checks in selection. • Section 9.3—Updated statistics on benefits. • Section 9.4—Renamed “Onboarding and Learning and Development.” Opens with an updated discussion linking onboarding and learning and development to strategic HRM. New Table 9.1 on the effects of positive and negative onboarding experiences and a new discussion of onboarding best practices. Updated discussion of Figure 9.3: Five steps in the learning and development process, including new company examples and a new section on whether learning and development is worth the investment. Updated Example box on Keller Williams and its learning and development program. • Section 9.5—Renamed “Performance Management.” Reconfigured section “Performance Appraisals: Are They Worthwhile?” and revised discussion of forced ranking, with new company examples in both. New Example box on performance management at Regeneron. New content on best practices for 360-degree performance appraisals. New company examples for customer appraisals and 360-degree assessments. • Section 9.6—Reconfigured discussions of transfers as well as disciplining and demotion for enhanced readability. New content on tips for managing the demotion process. Updated discussion of firings and introduced new key term: “employment at will.” • Section 9.7—Updated statistics on minimum wage, bullying, and workplace discrimination. Updated Example box discussing sexual harassment at work. Reconfigured discussions of bullying and what managers can do to prevent sexual harassment. New examples of affirmative action and a company using AI to reduce discrimination in hiring decisions. • Section 9.8—Opens with updated statistics on labor unions. Updated Figure 9.5 showing right-to-work states. Updated Table 9.5 on union membership. Updated Table 9.6 on four xiv New to the tenth edition
- 16. kinds of workplacelabor arrangements. New company examples of two-tier wage rates and arbitration. • Section 9.9—Updated Career Corner feature: Managing Your Career Readiness. Revised discussion of becoming a better receiver with new material on listening and self-compassion. Introduced new key terms: self-compassion and psychological capital. • Updated Management in Action case: Difficulties Attracting and Retaining Human Capital in the Nursing Profession. • Updated Legal/Ethical Challenge: Should Noncompete Agreements Be Legal? New company example. CHAPTER 10 • Updated Manage U: How Can I Be More Creative at Work? Introduced new key term: “creativity.” • Section 10.1—New Example box discussing radical change in the movie industry. New example box on reactive change discussing religious practices during COVID-19. Various content updates, including new examples of the supertrends shaping the future of business; proactive change; technological advancements as forces for change; shareholder, customer, and broader stakeholder concerns; and managers’ behavior. Updated example of human resource concerns and new data on demographic characteristics as forces for change. • Section 10.2—Renamed “Forms and Models of Change.” New example of very threatening, radically innovative change. New example of Walmart’s use of robots in its stores woven throughout discussion of Lewin’s Change Model. Reconfigured discussions of force-field analysis and applying the systems model of change for enhanced readability. New company example to illustrate application of the systems model of change. • Section 10.3—A new section title, “Improving Individual, Team, and Organizational Performance,” was used to explain the uses of OD: It replaces the previous title “Managing Conflict.” New Example box on career readiness interventions. Reconfigured discussion of how OD works for enhanced readability. New example of conflict in a company and revitalizing organizations. • Section 10.4—Updated introduction section with new statistics and a new example. Content updates throughout, including new examples of product innovation, process innovation, improvement innovation, new-direction innovation, innovation strategy, commitment from senior leaders, how organizational structure and processes can promote innovation, crowdsourcing, developing the necessary human capital for innovation, and using resources for innovation. New section and example discussing whether innovation can go too far. Updated discussion of the components of an innovation system. Updated discussion of human resource policies, practices, and procedures along with a new company example. Updated Table 10.1: The world’s most innovative companies. Updated Example box: IDEO’s Approach to Innovation. • Section 10.6 –Updated Career Corner feature: Managing Your Career Readiness. Reconfigured discussion of Applying Self-Affirmation Theory. • New Management in Action case: Were Deadly COVID-19 Outbreaks Aboard Carnival Cruise Ships the Result of Managers’ Resistance to Change? • New Legal/Ethical Challenge: Does Clearview Technology Violate Rights? CHAPTER 11 • Updated Manage U: Making Positive First Impressions. • Section 11.1—Opens with updated information and statistics for employment and personality testing and the Big Five personality dimensions. Updated research regarding personality and individual behavior and work attitudes. Expanded content on emotional intelligence with a new table on the traits associated with EI and the related career readiness competencies. Updated Practical Action box on how technology can be used to develop emotional intelligence. • Section 11.2—Updated research on values and behavior, as well as both research and statistics for attitudes. Updated Practical Action box on using cognitive reframing to reduce cognitive dissonance. • Section 11.3—Updated research, statistics, and examples pertaining to distortions in perception. Expanded coverage of implicit bias to include its effects on employment decisions, courtroom decisions, utilization of technology. Updated Example box discussing the halo effect and how body weight affects careers. Updated Example box on the Pygmalion effect. • Section 11.4—Opens with new content on employee engagement and a new Figure 11.3 showing the percentage of fully engaged employees around the world. New coverage of the four ways managers can increase employee engagement: design meaningful work, improve supervisor- employee relations, provide learning and development opportunities, and reduce stressors. Updated research, examples, and statistics on job satisfaction; organizational commitment; and important workplace behaviors like organizational citizenship, counterproductive behavior, performance and productivity, and absenteeism and turnover. Entirely new focus on prosocial behavior and prosocial motivation with a new Figure 11.4 depicting a model of prosocial behavior. “Prosocial behavior (PSB)” and “prosocial motivation (PSM)” are new key terms. This new content includes new research and examples from both the Bill and Melinda Gates Foundation and the coronavirus pandemic. Updated Example box on toxic workplaces. • Section 11.5—Updated examples, research, and statistics regarding trends in workplace diversity, including age, New to the tenth edition xv
- 17. gender, race, andsexual orientation. Updated research and examples pertaining to barriers to diversity. Updated Example box showcasing Ultimate Software. • Section 11.6—Updated research, examples, and statistics on stress and its consequences. New Figure 11.6 shows the relationship between stress and performance. Updated research and examples on sources of stress. Expanded content on employee assistance programs with new statistics. Updated Example box showcasing Google’s wellness initiatives. • Section 11.7—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: Emotional Baggage at Away. • Updated Legal/Ethical Challenge: Should Airlines Accommodate Oversized People? CHAPTER 12 • Updated Manage U: Managing for Motivation: Building your Own Motivation. • Section 12.1—Updated introduction section and updated discussion of student loan debt and repayment. New examples of wellness incentives and intrinsic rewards. • Section 12.2—Reconfigured discussions of Using the Hierarchy of Needs to Motivate Employees, McClelland’s Acquired Needs Theory, and Using Two-Factor Theory to Motivate Employees for enhanced readability. New company example of two-factor theory. Updated example for competence and new examples of autonomy and relatedness in discussions of Deci and Ryan’s Self-Determination Theory. Updated examples of hygiene factors and motivating factors. • Section 12.3—New Example box on employee activism. New Example box on Dr. Anne-Marie Imafidon. Reconfigured discussions of equity/justice theory, expectancy theory, stretch goals, and two types of goal orientations for enhanced readability and clarity. Reconfigured discussion of practical results of goal-setting theory along with new company examples. Updated data on CEO compensation and new statistics on the desire for voice. New examples of employee perceptions of injustice, employee voice, appeals process, and instrumentality. New example of valence, discussing the rewards preferred by various generations of workers. • Section 12.4—Updated introduction with new statistics on the percentage of people who are bored with their jobs. Reconfigured discussion of Fitting Jobs to People and how the Job Characteristics Model works for enhanced readability. New company examples of job enrichment and job redesign. • Section 12.5—New title of Figure 12.10: “Four types of behavior modification” and a reconfigured discussion throughout this section that centers on behavior modification. • Section 12.6—Reconfigured discussion of characteristics of the best incentive compensation plans, work-life benefits, and the need for a positive work environment for enhanced readability. Updated examples of companies that use bonuses, profit sharing, and stock options. Updated statistics on learning and development. New title of section “The Need for Personal Growth” to replace title “The Need to Expand Skills.” New title of section “The Need for Meaningful Work” to replace title “The Need to Matter—Finding Meaning in Work” along with three new examples in this section. • Section 12.7—Updated Career Corner feature: Managing Your Career Readiness. Reconfigured discussion of “the self- management process” for enhanced readability and clarity. New discussion of recharging. • New Management in Action case: What Motivated Workers in the Face of a Pandemic? • Updated Legal/Ethical Challenge: Are Workplace Wellness Programs Using Proper Motivational Tools? CHAPTER 13 • Updated Manage U: Managing Team Conflict Like a Pro. • Section 13.1—Updated research and new examples pertaining to teams. New Example box showcasing T-Mobile’s approach to cross-functional teams. Expanded content on virtual teams with new statistics. Updated Practical Action box regarding best practices for virtual teams. • Section 13.2—Updated content on punctuated equilibrium and its tie to Brexit. • Section 13.3—Updated examples, research, and statistics on collaboration. Expanded content on trust with the addition of the trust triangle and its drivers. Revised Example box focuses on building trust using the trust triangle. Updated Practical Action box on building effective team norms. Expanded content on team reflexivity by linking with post- mortems. • Section 13.4—Updated research and examples on conflict. Expanded and updated the discussion on kinds of conflict and included coverage of envy as a source of conflict. Updated Practical Action box on devil’s advocacy. New content on career readiness competencies to help you better handle conflict. Updated research on common conflict- handling styles. • Section 13.5—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: Must See Quarantine TV. • Updated Legal/Ethical Challenge: Recreational Marijuana Use: A Manager’s Quandary. CHAPTER 14 • Updated Manage U: Improving Your Leadership Skills. • Section 14.1—Reconfigured discussion on “What Is the Difference between Leading and Managing?” for enhanced xvi New to the tenth edition
- 18. readability. Updated Table14.1 to include coping with complexity and coping with change. Updated discussion of sources of power to include sixth source—informational power. New examples of leadership versus management and all six types of power. New examples of all nine influence tactics in Table 14.2. New title of section “How to Use the Tactics to Influence Outcomes” to replace title “Match Tactics to Influence Outcomes” along with updates to the lessons from research and practice. • Section 14.2—Updated Table 14.3 to clarify the difference between positive interpersonal attributes and negative interpersonal attributes. Completely revised discussion of “what do we know about gender and leadership,” including new examples of female leaders, a new Example box on gender and leadership during a crisis, and updated statistics on gender and leadership. Updated examples of three of the four basic skills for leaders in Table 14.4. New examples of dark triad traits, an organization that uses personality assessments, and a company that values cross-cultural competency. • Section 14.3—Reconfigured discussion of Behavioral Approaches to focus on task-oriented behavior and relationship-oriented behavior. Moved discussion of transformational and transactional leadership to Section 14.5. New comparison of the results of the Ohio State and University of Michigan studies. New examples of task- oriented and relationship-oriented leadership. • Section 14.4—Reconfigured discussion of the two leadership orientations in Fiedler’s model for enhanced readability. New discussion of what the path–goal theory looks like in practice along with a new example of a leader using this approach. • Section 14.5—New title “The Full-Range Model: Using Transactional and Transformational Leadership” to replace title “The Uses of Transformational Leadership.” Updated discussion in this section to focus on the full-range model, which includes both transactional and transformational leadership. New examples of transactional leadership, transformational leadership, idealized influence, individualized consideration, and intellectual stimulation. New Example box featuring Ann-Marie Campbell as a leader who is both transactional and transformational. Revised discussions of Four Key Behaviors of Transformational Leaders and So What Do We Know about Transformational Leadership for enhanced readability. • Section 14.6—New title “Contemporary Perspectives and Concepts” to replace “Three Additional Perspectives.” Moved discussions of servant leadership, empowering leadership, ethical leadership, and the role of followers to this section. Updated discussions of the LMX model and Humility for enhanced readability. New examples of servant leadership, a humble leader, and ethical leadership. Updated discussion of Satya Nadella as a humble leader and an updated Practical Action box that discusses how to be a good leader by being a good follower. New example of Bernard Tyson woven throughout discussion of Empowering Leadership. Updated research on ethical leadership. New section on Abusive Supervision as a contemporary leadership concept, including discussions of what causes abusive supervision, how it affects employees, and how organizations might deal with it. • Section 14.7—Updated Career Corner: Managing Your Career Readiness. Reconfigured section on Becoming More Self- Aware for enhanced readability. • New Management in Action case: Adam Neumann’s Rise and Fall at WeWork. • Updated Legal/Ethical Challenge: Should Starbucks Have a Corporate Loitering Policy? CHAPTER 15 • New Manage U: Improving Your Use of Empathy. • Section 15.1—New coverage of noise focuses on four components: physical, psychological, semantic, and physiological. Updated research on media richness and selecting the best medium. New example involving Captain Brett Crozier regarding the incorrect choice of communication medium. New Example box on how two health systems used the contingency approach to communication. • Section 15.2—New examples of downward and external communication. New material on four ways managers can reduce negative aspects of the grapevine. Updated research on the grapevine. New Practical Action box offering tips for improving meetings. • Section 15.3— Revised focus of Table 15.2 to center on how barriers happen in various steps of the communication process. Reconfigured discussions of all of the barriers to communication for enhanced readability. New examples of physical distance and facial expressions as communication barriers. New title “Attentional Issues” to replace title “Faulty Listening Skills” along with an updated discussion and two new suggestions for reducing the impact of these issues on communication. Updated discussion and statistics on generational differences as communication barriers. New Practical Action box on improving your cross-cultural communication fluency. Updated discussion of touch as a communication barrier with new general guidelines for physical affection at work. Revised discussion of gender differences as communication barriers to include a revised Table 15.3 that focuses on masculine and feminine social norms for communication. • Section 15.4—Completely new content on how social media has changed our lives with new examples and statistics, as well as an updated figure showing the use of social media across various age groups. Updated research on social media and managerial and organizational effectiveness. Updated Practical Action box on building your own social media brand. New examples and research for employee and employer productivity, crowdsourcing, sales and brand recognition, New to the tenth edition xvii
- 19. and reputation. Updatedexamples, statistics, table, and research pertaining to the downsides of social media, including new content on false information and fake news. New Practical Action box on defending against fake news. Updated table showing elements of an effective social media policy. New Example box illustrating samples of social media policies at IBM, Best Buy, Intel, Walmart, Washington Post, and GAP. • Section 15.5—Reconfigured discussion of Nondefensive Communication for enhanced readability and included three suggestions for avoiding defensive communication and fostering nondefensive communication. Revised discussion of Being an Effective Listener with new points about active listening. Revised discussion of five recommendations for improving your listening skills with new examples throughout. New example of empathy. Revised discussion of Being an Effective Speaker for enhanced readability along with the inclusion of new statistics. • Section 15.6—Updated Career Corner feature: Managing Your Career Readiness. • Updated Management in Action case: Fyre and Fury. • New Legal/Ethical Challenge: The Cost of Speaking Out Against Your Employer. CHAPTER 16 • Updated Manage U: Mentors Can Help You Control Your Career. • Section 16.1—New examples on why control is needed from higher education, the coronavirus pandemic, Ford, General Electric, and Amazon. Types of control moved to next section. • Section 16.2—Renamed “The Control Process and Types of Control.” Revamped section opens with new examples and research pertaining to steps in the control process. Updated Example box on how UPS uses control to ensure success. Coverage of the types of control is now in this section with new examples from Southwest, the trucking industry, and Cigna. • Section 16.3—Renamed “What Should Managers Control?” with a new focus on how the balanced scorecard can be used to effectively control an organization. Section opens with a new introduction and examples from Walmart, United Airlines, and the coronavirus pandemic. New research and examples for all four perspectives of the balanced scorecard from companies including ExxonMobil, Ritz Carlton, and Phoenix Sintered Metals. The financial perspective includes new content on budgets, financial statements (including coverage of income statements, balance sheets, and statements of cash flows), and financial ratios, as well as a new table depicting select ratios. Customer perspective includes expanded coverage on customer satisfaction and retention. Internal business perspective includes expanded coverage of productivity, benchmarking, best practices, efficiency, quality, and safety. Innovation and learning perspective includes new content on employee attitudes, turnover, resource capabilities, and culture. Updated strategy map for Keurig Dr. Pepper. • Section 16.4—This section now focuses on total quality management. Opens with an updated example of the 2019 Malcolm Baldrige National Quality Award recipient. Incorporation of content on quality, quality control, and quality assurance that used to be in Chapter 2. Updated research and examples pertaining to core TQM principles. Updated Example box on the Hyundai Genesis. Updated Example box on Kaizen methods. Updated Example box on how Nordstrom and Trader Joe’s provide excellent customer service. Updated research, examples, and statistics on TQM tools, techniques, and standards, including six sigma, lean six sigma, and ISO 9000/14000 series. • Section 16.5—New section titled “Contemporary Control Issues” focuses on artificial intelligence and employee tracking and monitoring. Section opens with new research, statistics, and examples from the CDC, Siemens, and Trenitalia, portraying how artificial intelligence can be used to effectively control an organization. New content on the advantages and disadvantages of employee monitoring and tracking with a new Example box on Three Square Market’s practice of microchipping employees. • Section 16.6—Updated Career Corner: Managing Your Career Readiness. • New Management in Action case: The U.S. Shale Boom . . . and Bust. • Updated Legal/Ethical Challenge: Using GPS to Track Employees. xviii New to the tenth edition
- 20. Walkthrough Preface of10e Kinicki/Breaux Soignet, Management: A Practical Introduction, 10e, empowers students to develop the management career skills necessary in everyday life through the practical and relevant application of theory. Developed to help students learn management with a purpose, Kinicki/Breaux Soignet 10e takes a student-centered approach. The revision expands its strategic career readiness theme and includes new coverage on the recently proposed management principle of creating shared value (CSV) and sustainable development. The hallmark strengths that have made it the market best-seller have been maintained and include: • A student-centered approach to learning. • Imaginative writing for readability and reinforcement. • Emphasis on practicality. • Resources that work. Our product covers the principles that most management instructors have come to expect in an introductory text—planning, organizing, leading, and controlling—plus current issues that students need to be to be aware of to succeed: career readiness, customer focus, globalism, diversity, ethics, social media, entrepreneurship, teams, innovation, artificial intelligence, big data, and person-organization fit. The textbook does a good job covering the role of a manager. I would recommend [it] to any instructor who is teaching the Principles of Management course. —Jerry D. Stevens, Texas Tech University “ ” Written with the modern student in mind. [This] book takes a very practical approach to management theory (and) especially shows how it applies to (someone) just starting a career. —William Belcher, Troy University “ ” xix Based on a wealth of instructor feedback and blending Angelo’s scholarship, teaching, publishing, and management-consulting with Denise’s academic background and writing ability, we have worked tirelessly to create a research-based yet highly readable, practical, and motivational product for the introductory principles of management course. Our goal is to make a difference in the lives of you and your students.
- 21. xx PART 1Introduction Building Your Career Readiness Chapter 1 contains a section devoted to explaining the need, value, and process for becoming career ready. It includes a model of career readiness along with a table of competencies desired by employers. 30 PART 1 Introduction About 53,000 undergraduate students from 218 universities across the United States rated 2019’s most attractive employers. The top 10 were (1) Google, (2) JPMorgan Chase, (3) Amazon, (4) Apple, (5) Goldman Sachs, (6) The Walt Disney Company, (7), Nike, (8) Deloitte, (9) Netflix, and (10) EY (Ernst & Young).132 Would you like to work at these companies or others like them? If so, you need to be career ready. Career readiness represents the extent to which you possess the knowledge, skills, and attributes desired by employers. How ready do you believe you are? Recent surveys of college students and employers reveal a big gap in the degree of readiness each group perceives in students. Figure 1.3 shows some key results of a study of 201 employers and 4,213 graduating seniors. The majority of students rated themselves as career-ready on 6 of 7 skills, while the majority of employers perceived students to be well-prepared on only 3 of the skills. The three largest gaps were in professionalism/work ethic, leader- ship, and oral/written communication, skills that are very important to employers.133 Other studies have similarly demonstrated that employers see a major skills gap in col- lege students’ interpersonal skills.134 LO 1-7 Define the core competencies, knowledge, soft skills, attitudes, and other characteristics needed for career readiness and discuss how they can be developed. 1.7 Building Your Career Readiness THE BIG PICTURE Companies want to hire career-ready college graduates. In this section we describe a model of career readi- ness and offer tips for building your readiness. Digital technology Global/intercultural fluency Teamwork/collaboration Leadership Critical thinking/ problem solving Oral/written communications Students Employers 43% 89% Professionalism/work ethic 42% 79% 56% 80% 77% 33% 66% 21% 85% 71% 60% 35% *4-5 ratings on a 1-to-5 scale Proportions Saying They/Recent College Graduates Are Proficient in Each Competency* FIGURE 1.3 Employers and college grads disagree about levels of career readiness Sources: National Association of Colleges and Employers, “Are College Graduates ‘Career Ready’?” February 19, 2018, https://www.naceweb.org/career- readiness/competencies/are- college-graduates-career-ready/. Data derived from NACE’s “Job Outlook 2018” and “The Class of 2017 Student Survey Report.” The good news is that merely acknowledging the existence of these gaps will impress potential employers because companies prefer to hire people with realistic self- perceptions. This underscores the need to obtain information about your strengths and weaknesses throughout your career. More importantly, we think your awareness that employers expect more from you in these areas will be valuable for at least two reasons: 1. You will be motivated to learn. Studies of human behavior reveal that people won’t spend time on personal development unless they feel the need. Overinflated per- ceptions of career readiness will not motivate you to develop the attributes that kin35168_ch01_002-043.indd 30 11/5/20 4:04 PM The Exceptional Manager CHAPTER 1 31 enhance that readiness. Having a realistic picture will increase your motivation to learn and develop. It will also allow you to practice learning, which is something you will need to do throughout your career. You may be surprised to learn that the knowledge you gain from your college degree may be obsolete in as little as five years.135 This is due to the rapidly changing nature of jobs, and it means that you should approach career readiness as a lifelong process rather than a one-time event that stops after graduation. Authors of the Future Work Skills 2020 report concluded that individuals “will increasingly be called upon to continually reas- sess the skills they need, and quickly put together the right resources to develop and update these. Workers in the future need to be adaptable lifelong learners.”136 2. You will know where to focus your energy. As you will learn in the upcoming section, the list of career readiness competencies is quite long, and some of the competencies will be more relevant to your personal career path than others. This can be daunting when you are trying to improve your career readiness— where should you begin? We’re here to help. In comparing the results from multiple career readiness studies (including the NACE data presented in Fig- ure 1.3), we noticed there were several competencies that employers consis- tently rated as essential.137 We call these core competencies. Organizations across the board are on the prowl for employees who possess these basic com- petencies, many of which are reflected in the “gaps” you just learned about. Let’s consider a model of career readiness and how you can apply it in your life. A Model of Career Readiness Being career ready is more encompassing than you might think. It starts with core competencies—a set of competencies that are vital across jobs, occupations, and indus- tries. Four additional categories of competency round out career readiness: knowledge, soft skills, attitudes, and other characteristics (see Figure 1.4). Let’s look at each compo- nent of the model in detail. Soft skills • Decision making • Social intelligence • Networking • Emotional intelligence Other characteristics • Resilience • Personal adaptability • Self-awareness • Service/others orientation • Openness to change • Generalized self-efficacy Knowledge • Task-based/functional • Computational thinking • Understanding the business • New media literacy Attitudes • Ownership/accepting responsibilities • Self-motivation • Proactive learning orientation • Showing commitment • Positive approach • Career management Core • Critical thinking/problem solving • Oral/written communication • Teamwork/collaboration • Information technology application • Leadership • Professionalism/work ethic • Cross-cultural competency FIGURE 1.4 Model of career readiness kin35168_ch01_002-043.indd 31 11/5/20 4:04 PM xx Focus on Career Readiness Global research shows that employers are finding it hard to find college graduates who possess the skills needed to be successful. These employers also think that colleges and universities need to do a better job making students career ready. Our goal in 10e is to contribute to overcoming this problem in two ways. First, we expanded and updated the coverage of career readiness in the product. Second, we developed activities for both online and face-to-face teaching that professors can use to develop students career readiness competencies. They are contained in our novel Teaching Resources Manual (TRM).
- 22. Management Theory CHAPTER2 xxi xxi Career Corner Each chapter concludes with a section entitled “Career Corner: Managing Your Career Readiness.” The material provides students with practical tips for developing targeted career readiness competencies. It also explains the linkage between the content covered in the chapter and the career readiness competencies desired by employers. Concept Mastery New exercises in Connect allow students to demonstrate lower levels of learning regarding career readiness. The TRM provides opportunities for higher levels of learning for career readiness competencies. Self-Assessments Over 38 Self-Assessments allow students to assess the extent to which they possess aspects of the career readiness competencies desired by employers. The Exceptional Manager CHAPTER 1 37 Let Us Help Our two overriding goals for writing this book are to (1) assist you in leading a happy and meaningful life and (2) help you become career ready by learning about the prin- ciples of management. We thus created a feature for each chapter titled “Career Corner: Managing Your Career Readiness.” The purpose of this feature is to help you integrate what you learn in a chapter into the process of building your career readiness. The next section is our first installment. ● The goal of this section is to help you apply what you learn to building your career readiness. Let’s begin with three keys to success: 1. It’s your responsibility to manage your career. Don’t count on others. 2. Personal reflection, motivation, commitment, and experimentation are essential. 3. Success is achieved by following a process. A process is defined as a series of actions or steps followed to bring about a desired result. A Process for Developing Career Readiness Figure 1.5 illustrates a process to guide the pursuit of managing your career readiness. We recommend the following four steps: Step 1. The first step entails examining the list of career readiness competencies in Table 1.2 and picking two or three that impact your current performance at school, work, or extracurricular activities. You then need to assess your skill level for these com- petencies. This textbook contains 64 self-assessments you can take for this purpose. The first one was presented on page 29. Step 2. The second step requires you to consider how you can use the material cov- ered in a chapter to develop your targeted career readiness competencies. For example, do your targeted competencies at this point relate to any of the four functions of man- agement: planning, organizing, leading, or controlling? If yes, reflect on what you learned while reading material regarding the functions of management and consider how you can apply ideas, concepts, or suggestions that were discussed. Step 3. The third step involves experimenting with small steps aimed at developing your targeted career readiness competencies. Step 4. The final step is to evaluate what happened during your small-step experi- ments. This entails reflecting on what went right and wrong. Remember, you can learn as much from failure as success. Figure 1.5 shows that willingness is at the center of developing your career readiness. This reinforces the point that it’s up to you to shape and direct your future. We are con- fident that you can develop your career readiness by following this process and using the guidance provided at the end of every chapter.150 LO 1-8 Describe the process for managing your career readiness. 1.8 Career Corner: Managing Your Career Readiness kin35168_ch01_002-043.indd 37 11/28/20 9:26 AM what we do and say. For example, taking ownership or responsibility is a key attitude preferred by recruiters. It reflects the extent to which a person accepts responsibility for his or her actions. We suspect recruiters desire this attitude because it is positively asso- ciated with employees’ commitment, job satisfaction, and engagement. Feelings of own- ership also reduce employees’ desire to quit.142 All told, you can create more favorable impressions during interviews if you demonstrate this attitude. Find out where you stand on this attitude by taking Self-Assessment 1.2. It was designed to enhance your self-awareness about the extent to which you accept responsibility for your actions. To What Extent Do You Accept Responsibility for Your Actions? People are more likely to work diligently toward accomplishing their goals and accept performance feedback when they ac- cept responsibility for their actions. They also are less likely to blame others for their mistakes or poor performance. This self- assessment allows you to determine your status regarding this important attitude. The survey feedback will help you to main- tain or improve your attitude about taking ownership/responsi- bility for your actions. Please be prepared to answer these questions if your in- structor has assigned Self-Assessment 1.2 in Connect. 1. Do you have a strong attitude about accepting responsibility for your actions? Do you agree with these results? Explain your thinking. 2. What can you do to increase the strength of this attitude? 3. What things would you say during an interview to demonstrate that you possess the career readiness competency of ownership/accepting responsibility? SELF-ASSESSMENT 1.2 CAREER READINESS Other Characteristics This category contains a host of personal characteristics that prompt positive impressions among others and help you effectively adapt to per- sonal and work-related changes. Consider professionalism/work ethic and resilience. Aaron Michel, cofounder and CEO at PathSource, a career navigation and education software company, believes professionalism/work ethic “cannot be overvalued in the job market.” He concluded that “just being on time and behaving responsibly can leave a strong impression.”143 Consider the competency of resilience. Resilience is the ability to bounce back from adversity and to sustain yourself when faced with a challenge. Research shows that it is a key trait of successful people.144 Heis- man Trophy winner Joe Burrow displayed resilience in his college football career. After being rejected by his dream school Nebraska and then sitting on the bench at Ohio State for two seasons, Burrow suffered a broken thumb and lost his chance to start in the 2018 season.145 Instead of giving up on his dream he transferred to LSU, where his kin35168_ch01_002-043.indd 34 11/5/20 4:04 PM
- 23. Chapter Openers Each chapterbegins with a list of key learning objectives that appeal to students’ concern about “what’s in it for me?” and to help them read with purpose. Chapter Sections Within each chapter, sections are organized according to the major learning objectives. Generous use of headings and bulleted lists provide students with bite-sized chunks of information to facilitate retention. Each section begins with a recap of the Learning Objective and includes The Big Picture, which presents an overview of how the section addresses the stated objective. What’s Ahead in This Chapter We describe planning and its link to strategy. We define planning, strategy, and strategic management and state why they are important. We deal with the fundamentals of planning, including the mission, vision, and value statements, and the three types of planning—strategic, tactical, and opera- tional. We consider goals, operating plans, and action plans; SMART goals, management by objectives, and cascading goals; and finally the planning/ control cycle. We conclude with a Career Corner that focuses on how you can develop the career readiness competency of proactive learning orientation. FORECAST After reading this chapter, you should be able to: LO 5-1 Discuss the role of strategic management. LO 5-2 Compare mission, vision, and value statements. LO 5-3 Discuss the types and purposes of goals and plans. LO 5-4 Describe SMART goals and their implementation. LO 5-5 Outline the planning/control cycle. LO 5-6 Describe how to develop the career readiness competency of proactive learning orientation. PART 3 • PLANNING Planning The Foundation of Successful Management 5 Kapook2981/iStock/Getty Images kin35168_ch05_178-207.indd 178 11/13/20 8:18 AM 46 PART 1 Introduction “The best way to predict the future is to create it,” says Peter Drucker. Understanding management history can assist you in determining the type of management style you prefer in others and the type you want to adopt for yourself in the future. A good grasp of management history also enables you to utilize a host of different managerial per- spectives and techniques, thereby improving your ability to manage others. Creating Modern Management: The Handbook of Peter Drucker Who is Peter Drucker? “He was the creator and inventor of modern management,” says management guru Tom Peters (author of In Search of Excellence).7 Business.com sug- gests that Drucker’s management theories “form the bedrock on which corporate America was built.”8 An Austrian trained in economics and international law, Drucker came to the United States in 1937, where he worked as a correspondent for British newspapers and later became a college professor. In 1954, he published his famous text The Practice of Man- agement, in which he proposed the important idea that management was one of the major social innovations of the 20th century and should be treated as a profession, like medicine or law. In this and other books, he introduced several ideas that now underlie the organiza- tion and practice of management: ■ Workers should be treated as assets. ■ The corporation could be considered a human community. ■ There is “no business without a customer.” ■ Institutionalized management practices are preferable to charismatic cult leaders. Many ideas you will encounter in this book—decentralization, management by objec- tives, knowledge workers—are directly traceable to Drucker’s pen (see the Example box on Wegmans). In our time, Drucker’s rational approach has culminated in evidence- based management, as we describe in Section 2.4 in this chapter. LO 2-1 Describe the development of current perspectives on management. 2.1 Evolving Viewpoints: How We Got to Today’s Management Outlook THE BIG PICTURE This section provides an overview of management history, starting with an overview of Peter Drucker’s four fundamental principles of management. We also review six reasons for studying management theory. True learner. In his 70-year career, Peter Drucker published more than 35 books and numerous other publications, received the U.S. Presidential Medal of Freedom, and achieved near rock-star status for his management ideas. A true learner who constantly expanded his knowledge, Drucker understood that new experiences are key to nurturing new ideas and new ventures. Do you have this kind of curiosity? Jonathan Alcorn/ZUMAPRESS/ Newscom EXAMPLE Drucker’s Principles in Action: Wegmans Food Markets Drucker’s principles are alive and well in many leading busi- nesses today, including at Wegmans supermarket chain. The organization has more than 100 locations and has been listed as one of Fortune’s “Best Companies to Work For” 22 years in a row. The company also boasts a 94% approval rating from current and former employees who rated it on Glassdoor.9 Employees are ecstatic about Wegmans because the su- permarket chain treats its workforce as assets. Every year, We- gmans invests more than $50 million in employee scholarships, cooking technique certifications, management trainee and leadership development programs, and a whole host of other initiatives. Employees can also take online training seminars kin35168_ch02_044-073.indd 46 11/13/20 8:03 AM Forecast Shown below the learning objectives, the forecast provides a high-level of summary of what is covered in the chapter. The book is well organized and offers a good variety of resources and activities [that can be] used in a face-to-face or online format. —Patricia Lanier, University of Louisiana at Lafayette “ ” The good problem to have with this book and related materials is that the resources available . . . enhance student learning. —Gerald Schoenfeld, Florida Gulf Coast University “ ” xxii Student-Centered Approach to Learning Our writing style and product design is based on neuroscience research. Greater learning occurs when information is “chunked” to keep student attention. We break down topics into easily digestible portions with purposeful pedagogy to make theories and concepts easier to learn and apply. We made a concerted effort to increase the amount of chunked material in 10e. This accounts for the use of purposeful color, an extensive photo program, bulleted lists, and headings to appeal to the visual sensibilities, time constraints, and diverse learning styles of today’s students.
- 24. Research shows thatproducts written in an imaginative, story-telling style significantly improve students’ ability to retain information. We employ numerous journalistic devices to make the material engaging and relevant to students lives. xxiii Example boxes We utilize numerous Example boxes to emphasize the practical applications of business. These mini cases use snapshots of real-world companies to explain text concepts. “Your Call” questions stimulate class discussions and help students develop their critical thinking skills. The Manager’s Changing Work Environment and Ethical Responsibilities CHAPTER 3 83 8. Financial Institutions Want to launch a small company? Although normally reluc- tant to make loans to start-ups, financial institutions—banks, savings and loans, and credit unions—may do so if you have a good credit history or can secure the loan with property such as a house. You might also receive help from venture capitalists. Venture capital is money provided by investors to start-up firms and small businesses with high risk but per- ceived long-term growth potential, in return for an ownership stake. During the Great Recession, when even good customers found loans hard to get, a new kind of financing emerged called crowdfunding, raising money for a project or venture by obtaining many small amounts of money from many people (“the crowd”), using websites such as Kickstarter. We discuss crowdfunding further in Chapter 10. Established companies also often need loans to tide them over when revenues are down or to finance expansion, but they rely on lenders such as commercial banks, investment banks, and insurance companies for assistance. EXAMPLE Local Communities as Stakeholders: Does Amazon Really Need Tax Breaks? Amazon is becoming one of Ohio’s largest employers,43 and in Summer 2019 the company announced it would open two new fulfillment centers in the state, bringing the state’s total num- ber of Amazon fulfillment centers up to six.44 Since 2016 Ama- zon has received more than $15.8 million in tax credits for its facilities in Ohio. The city of Akron also plans to give Amazon an estimated $17 million dollar tax rebate over 30 years in ex- change for the company locating its facility there.45 Amazon’s tax breaks are not confined to Ohio. In fact, in 2019, Amazon saved at least $171.9 million dollars due to tax incentives it received from its distribution centers across the United States.46 These tax breaks are popular because “incen- tives give companies the ability to shop around in various states and ask for breaks,” said Adam Michel, Washington, D.C.–based senior policy analyst. He added, “Because of the perceived ability of these firms to choose somewhere else, a lot of local governments feel pressure to give them sweetheart deals to lure them to their locality.”47 Impacts on Local Economies. New physical facilities bring great economic benefits according to Amazon and others who support the use of tax incentives to lure companies to build ware- houses and distribution centers in their locations. Amazon rea- sons that across its six facilities in Ohio it will have created more than 11,000 jobs in the state.48 The company also says that its presence in Illinois has resulted in more than $4 billion worth of investments in the state since 2010.49 Finally, Amazon estimates that it has created at least 7,000 jobs in Illinois outside of Amazon.50 Not everyone agrees that these tax incentives create jobs or do much to boost local economies. And since Amazon’s infamous decision to retreat from its planned second headquarters in New York (which would have meant $3.4 billion in tax incentives and grants for the company),51 lawmakers in at least seven states are working on legislation aimed at outlawing these incentives.52 Some economists have warned that giving huge tax breaks to incoming businesses does little more than rob cities of re- sources needed by arguably more important entities like their school, housing, and transportation systems. What’s more, these systems also may need expensive upgrades and im- provements to accommodate the huge influx of Amazon work- ers moving in, and existing businesses and individual taxpayers would end up footing the bill.53 San Jose, California, had been one of the cities vying for Amazon’s second headquarters, but Mayor Sam Liccardo’s of- fer made it clear that the e-commerce giant would receive no tax incentives for locating there. He said, “If you’re offering incentives, those are dollars you could use to be building out transit . . . supporting an ecosystem of talent development.”54 Several studies suggest that tax incentives often fail to deliver the benefits they promise, and that in some cases, tax breaks may even harm employment growth and local economies.55 YOUR CALL Do you think tax breaks for big companies like Amazon benefit local communities? Should these companies continue to receive tax breaks when they build new facilities? Why or why not? The Amazon Spheres at its urban campus in the Belltown neighborhood of Seattle. Paul Christian Gordon/Alamy Stock Photo kin35168_ch03_074-115.indd 83 11/13/20 9:22 AM I devoted several weeks to reviewing textbooks. I started with 12, narrowed it down to 3 and Kinicki came up as my first choice. It is easy to read and not boring. Those are both important to me. —Mihran Aroian, University of Texas at Austin ” “ [Has the] right level of rigor for the course . . . contains a logical structure of material . . . [and] current examples for students to relate to [their] course work. —Jennifer Trout, Rasmussen College ” “ Imaginative Writing for Readability and Reinforcement
- 25. xxiv Students are moreengaged and motivated when they connect with the material being taught. This implies that textbook examples and illustrations must be relevant to readers. We accomplish this by using hundreds of practical examples that are both timely and inclusive. For example, we used 56 examples to illustrate how management principles could be applied to handling the coronavirus pandemic in 2020, and we incorporated 165 examples of diverse individuals who have made a difference in their organizations. Given the diversity of today’s students, our use of these examples should resonate with students. We want this tenth edition to be a cherished resource that students keep as they move into future courses and their future careers. We give students a great deal of practical advice in addition to covering the fundamental concepts of management. Extended Emphasis on Practicality Practical Action boxes Practical Action boxes offer students practical and interesting advice on issues they will face in the workplace. Self-Assessments Self-Assessment evaluations help students relate what they are learning to their own experiences and promote self-reflection, engagement, and development of their career readiness. Of the 64 total Self-Assessments included, nearly 38 of them pertain to a career readiness competency. For each of these, students are asked to consider how they might display the competency in an employment interview. Planning CHAPTER 5 197 Goal setting can seem like an intimidating process, but it’s both a necessary and a helpful one for the millions of small businesses (defined as having 500 or fewer employees) in the United States. In fact, a research study of 231 small businesses found that goal setting had a positive impact on the firm’s performance.57 These findings are important, particularly because small businesses account for 44% of U.S. economic activity and two-thirds of the nation’s new jobs.58 The Great Lakes Brewing Company, Ohio’s first craft brew- ery, is a good example of goal setting in small businesses.59 1. Break large goals down into smaller ones: Great Lakes developed a five-year strategic plan in 2013 and focused on three “bottom lines”: social, economic, and environ- mental. We’ll focus on the social bottom line, which the brewery breaks down into areas such as equitable com- pensation, safety, and employee wellness. Safety is then broken down into a measurable goal, which is to keep the number of safety-related incidents (recordable inci- dent rate) at or below the industry average for any given year. 2. Track progress toward goals: Great Lakes has a safety committee that meets regularly to track the number of safety-related incidents at its factory. For example, in 2013 it was 3.05 and in 2018 it was 2.94. It then com- pares the incidents to that year’s industry average (the in- dustry average in 2018 was 3.1). The company knows it is meeting its goal if its incident rate is below the industry average. 3. Keep the goal in sight: The brewery’s management knows it must take action to ensure safety goals are met. For example, the company hired a full-time safety man- ager in 2015 to “give more attention to the development of safety programs and culture.” The company also made some changes in 2017 to improve safety, such as chang- ing its chemical storage policies and providing training and equipment for respiratory protection. 4. Accept that setbacks will happen: Just because the company strives to make improvements doesn’t mean the number of safety-related incidents will always de- crease. For example, Great Lakes’ incident rate signifi- cantly increased from 0.48 in 2017 to 2.94 in 2018. Based on this setback, the company decided to change its safety manager in 2019 and re-evaluate its safety program. 5. Celebrate success: Great Lakes celebrated achieving 90% overall goal attainment in 2018. In recognition of this achievement, the company gave employees mone- tary bonuses. YOUR CALL What major goal of your own have you broken into smaller parts? If you have never done this, for what future goal do you think it would be an effective strategy for you? Setting Goals for a Small Business PRACTICAL ACTION The Importance of Deadlines There’s no question that college is a pressure cooker for many students. The reason, of course, is the seemingly never-ending deadlines. But consider: Would you do all the course work you’re doing—and realize the education you’re getting—if you didn’t have deadlines? As we saw under the “T” (for “has target dates”) in SMART goals, deadlines are as essential to goal setting in business as they are to your college career. Because the whole purpose of planning and setting goals is to deliver to a client specified results within a specified period of time, deadlines become a great motivator, both for you and for the people working for you. It’s possible, of course, to let deadlines mislead you into focusing too much on imme- diate results and thereby ignoring overall planning—just as students will focus too much on preparing for a test in one course while neglecting others. In general, however, dead- lines can help you keep your eye on the “big picture” while simultaneously paying atten- tion to the details that will help you realize the big picture. Deadlines can help concentrate the mind, so that you make quick decisions rather than put them off. Dead- lines help you ignore extraneous matters (such as cleaning up a messy desk) in favor of focusing on what’s important—realizing the goal’s on time and on budget. Deadlines provide a mechanism for giving ourselves feedback. ● kin35168_ch05_178-207.indd 197 11/13/20 11:12 AM Groups and Teams CHAPTER 13 565 Groups and Teams: How Do They Differ? Aren’t a group of people and a team of people the same thing? By and large, no. One is a collection of people, the other a powerful unit of collective performance. One is typi- cally management directed, the other self-directed. Consider the differences, as follows. What a Group Is: A Collection of People Performing as Individuals A group is defined as (1) two or more freely interacting individuals who (2) share norms, (3) share goals, and (4) have a common identity.9 A group is different from a crowd, a transi- tory collection of people who don’t interact with one another, such as a crowd gather- ing on a sidewalk to watch a fire. And it is different from an organization, such as a labor union, which is so large that members also don’t interact. An example of a work group would be a collection of 10 employees meeting to exchange information about various company policies on wages and hours. What a Team Is: A Collection of People with Common Commitment McKinsey & Company management consultants Jon R. Katzenbach and Douglas K. Smith say it is a mistake to use the terms group and team interchangeably. Where groups have individual accountability, teams require both individual and mutual accountability in order to produce results. Thus, a team is defined as a small group of people working together with a common purpose, performance goals, and mutual accountability.10 “Teams produce joint work product through the joint combinations of their members. This is what makes possible performance levels greater than the sum of all the individual bests of team members” says Katzenbach.11 H2M Example: H2M is a good example of a team. The company is an award-winning design, architecture, and engineering firm known for its team-oriented culture. The company has earned a teamwork score of 4.9/5 on online job review board kununu and includes teamwork as a core value. H2M also believes in promoting its team- based values to new graduates. To this end, CEO Rich Humann hosts a summer internship program that includes a focus on team building. The intent of the program is to develop teamwork and collaboration skills for the next generation of H2M employees.12 As you can see, teamwork is a soft skills career readiness competency desired by employers. It is defined as the ability to work effectively with and build collaborative relationships with diverse people, work within a team structure, and manage interper- sonal conflict. How do you feel about working in teams? Would you prefer to work alone? You can examine your attitude toward teamwork by completing Self-Assessment 13.1. Attitudes toward Teamwork The following survey was designed to assess your attitude to- ward teamwork. Please be prepared to answer these questions if your instructor has assigned Self-Assessment 13.1 in Connect. 1. What is your attitude toward teamwork? 2. If you do not have a positive teamwork attitude, consider the reason and identify what you might do to foster a more positive attitude. 3. What might you say during an interview to demonstrate that you possess the competency of teamwork/ collaboration? SELF-ASSESSMENT 13.1 CAREER READINESS kin35168_ch13_562-595.indd 565 11/10/20 9:04 PM xxiv
- 26. Legal/Ethical Challenge casesLegal/ Ethical Challenge cases ask students to resolve real ethical challenges faced by managers and organizations. They help develop students’ critical thinking and problem-solving skills around ethical issues. Boeing Continuing Case These new cases ask students to synthesize and apply what they’ve learned across the course to Boeing. Based on reviewer feedback, we’ve introduced these at the part level. 204 PART 3 Planning 1. What are planning, strategy, and strategic management? 2. Why are they important? 3. What is the difference between a mission and a vision, a mission statement and a vision statement? 4. What are three types of planning? 5. What are two types of goals? 6. What are SMART goals? 7. What is management by objectives? 8. What three things have to happen for MBO to be successful? 9. Explain the planning/control cycle. Understanding the Chapter: What Do I Know? Amtrak Is on the Wrong Side of the Tracks The National Railroad Passenger Corporation, better known as Amtrak, began operations in 1971. The rail- road has more than 20,000 employees and serves more than 500 destinations in the United States and Canada on more than 21,400 miles of track. Amtrak customers took 32.5 million trips in 2019, setting a record year- over-year increase of 800,000 passengers.72 Congress created Amtrak because private railroads were failing. By the 1940s, rail travel became less popu- lar as Americans chose buses, planes, and cars to get around the country. Eventually, the U.S. government consolidated the majority of passenger rail service un- der Amtrak’s umbrella. The federal government is Am- trak’s majority stockholder and guarantees its financial support, but the company is operated as a for-profit or- ganization rather than a government entity. Though it was created to save an unprofitable rail- road system, Amtrak itself has never earned a profit since its inception. For example, the company lost $194 million and $170 million in 2017 and 2018, respectively. Americans continue to choose other modes of trans- portation over Amtrak, and government subsidies are all that stand between the railroad and bankruptcy.73 Let’s take a closer look at what’s going on at America’s only high-speed rail provider. A LOSING MODEL One of Amtrak’s biggest problems is its price. For ex- ample, a four-hour Amtrak train from New York City to Boston is more expensive than hopping on a one-hour flight. Amtrak charges these high fares on popular Northeastern routes because its other routes across the country are either unprofitable or operating at a loss.74 According to Virginia Mercury, ridership may be able to grow if Amtrak’s prices were reduced.75 Amtrak’s other challenge is America’s sheer size. It is the fourth largest country in the world with 3.8 mil- lion square miles of land. Compare this with Japan’s rail service, which has to cover an area smaller than the state of California. All of this rail needs maintenance and repair, which Amtrak can’t afford. For example, Management in Action kin35168_ch05_178-207.indd 204 11/13/20 11:33 AM The Exceptional Manager CHAPTER 1 43 To Delay or Not to Delay? You have been hired by a vice president of a national company to create an employee attitude survey, to ad- minister it to all employees, and to interpret the re- sults. You have known this vice president for more than 10 years and have worked for her on several occa- sions. She trusts and likes you, and you trust and like her. You have completed your work and now are ready to present the findings and your interpretations to the vice president’s management team. The vice president has told you that she wants your honest interpretation of the results, because she is planning to make changes based on the results. Based on this discussion, your report clearly identifies several strengths and weak- nesses that need to be addressed. For example, em- ployees feel that they are working too hard and that management does not care about providing good cus- tomer service. At the meeting you will be presenting the results and your interpretations to a group of 15 managers. You also have known most of these manag- ers for at least five years. You arrive for the presentation armed with slides, handouts, and specific recommendations. Your slides are loaded on the computer, and most of the partici- pants have arrived. They are drinking coffee and telling you how enthused they are about hearing your presen- tation. You also are excited to share your insights. Ten minutes before the presentation is set to begin, however, the vice president takes you out of the meet- ing room and says she wants to talk with you about your presentation. The two of you go to another office, and she closes the door. She then tells you that her boss’s boss decided to come to the presentation unan- nounced. She thinks that he is coming to the presenta- tion to look solely for negative information in your report. He does not like the vice president and wants to replace her with one of his friends. If you present your results as planned, it will provide this individual with the information he needs to create serious problems for the vice president. Knowing this, the vice president asks you to find some way to postpone your presenta- tion. You have 10 minutes to decide what to do. SOLVING THE CHALLENGE What would you do? 1. Deliver the presentation as planned. 2. Give the presentation but skip over the negative results. 3. Go back to the meeting room and announce that your spouse has had an accident at home and you must leave immediately. You tell the group that you just re- ceived this message and that you will contact the vice president to schedule a new meeting. 4. Invent other options. Discuss. Legal/Ethical Challenge kin35168_ch01_002-043.indd 43 11/13/20 11:45 AM Learn more about Boeing’s ethical responsibilities in a globalized world, and the impact its decisions had on various stakeholders, including those outside the U.S. Assess your ability to apply concepts discussed in Chapters 3 and 4 to the case by going to Connect. Boeing Continuing Case ® kin35168_ch04_140-177.indd 177 11/13/20 11:36 AM Management in Action cases Rather than using stories about companies, the new Management in Action cases now focus on higher levels of learning by asking students to solve real organizational problems using relevant management concepts. They develop students’ core career readiness competencies of critical thinking and problem solving. I’m a huge fan of the self-assessments . . . they [make] students . . . think critically and apply their learning . . . and also make [students] more open to learning if they recognize a weakness in themselves. The overall applicability is so needed. —Kathleen Gosser, University of Louisville ” “ xxv
- 27. No matter howyou teach your course—face-to-face, hybrid, or online—you’re in the driver’s seat. We offer the most robust set of resources to enhance your Principles of Management course. In addition to our unique Teaching Resource Manual 2.0 (TRM), packed with additional activities and supplemental teaching tools, PowerPoint presentations, and Test Bank questions, we have a wealth of assignable resources available in Connect®. Connect® The tenth edition continues to build on the power of Con- nect and furthers our quest to help students move from comprehension to application. McGraw Hill Connect® is a personalized teaching and learning tool powered by adaptive technologies so your students learn more effi- ciently, retain more, and achieve better outcomes. We used this platform to create exercises that are auto-graded in order to assist students in developing their career readi- ness. Here you will find a wide variety of learning re- sources that develop students’ higher-order thinking skills, including: • SmartBook 2.0® An adaptive learning and reading tool, SmartBook 2.0 prompts students with questions based on the material they are studying. By assessing individual answers, SmartBook learns what each student knows and identifies which topics they need to practice. This technology gives each student a personalized learning experience and path to success. SmartBook provides students with a seamless combination of practice, assessment, and remediation. • Matching and Multiple Choice These activities help make the connection between theory and application through matching, ranking, or grouping. Every Career Corner has an exercise to help you assess students understanding about how to improve targeted career readiness competencies. • iSeeIt Animated Videos These brief, contemporary videos offer dynamic student-centered introductions, illustrations, and animations to guide students through challenging concepts. Ideal for before class as an introduction, during class to launch or clarify a topic, or after class for formative assessment. • Self-Assessments Designed to promote student self- awareness and self-reflection, these research-based activities also provide personal and professional development. For this edition, five new assessments were created to measure different career readiness competencies. In addition, new structured feedback explains how students should interpret their scores. • Case Analyses and Video Cases Our assortment of written and video cases challenge students to analyze concepts as they manifest in scenarios related to a real- life product or company, fostering students’ ability to think critically in lecture and beyond. Thought- provoking questions check the students’ application of the course material and develop their workplace readiness skills. • Manager’s Hot Seat Videos These actor-portrayed videos depict real-life situations where a manager is faced with a dilemma that needs to be analyzed based on management concepts. These videos enable students to see how managers in realistic situations deal with employees and complex issues. Students use their critical thinking skills to apply, analyze, and evaluate these managerial challenges, while learning from the manager’s mistakes. Each Hot Seat includes follow-up multiple-choice questions that are assignable and auto-gradable. • Boeing Continuing Case Students understand the application of and relationship between different concepts by applying them to the same company throughout the semester. Instructors now have a continuing case on Boeing that can be used as a summary case for each part. Each part-ending case includes multiple-choice questions that are assignable and auto-gradable, as well as essay-based questions. • Application-Based Activities McGraw Hill’s Application- Based Activities are highly interactive, automatically graded online exercises that provide students with a safe space to practice using problem-solving skills to apply their knowledge to realistic scenarios. Each scenario addresses key concepts and skills that students must use to work through and solve course-specific problems, resulting in improved critical thinking and relevant workplace skills. Students progress from understanding basic concepts to using their knowledge to analyze complex scenarios and solve real-life problems. Along the way, students see the implications of their decisions and are provided with feedback on how management theory should be informing their actions. They also receive detailed feedback at the conclusion of the activity. • Writing Assignment Premium Available within McGraw Hill Connect® and McGraw Hill Connect® Master, the Writing Assignment tool delivers a learning experience to help students improve their written communication skills and conceptual understanding. As an instructor you can assign, monitor, grade, and provide feedback on writing more efficiently and effectively. Resources That Work xxvi
- 28. xxvii This is thebest text on the market, [especially] with Connect and the dense and varied supporting materials available to instructors and students. —Carol Bormann Young, Metropolitan State University ” “ McGraw Hill has accomplished a seamless delivery of theoretical and practical content that can be used over multiple platforms [face-to-face, hybrid, and online]. —Lindy Archambeau, University of Florida ” “ This text is outstanding . . . [b]ut the additional resources provided to help us teach make it number one in my book. Connect, the test banks, the teacher resources, the relevant examples, the videos, and case studies make this a very easy and fun course to teach. I usually spend weeks finding my own relevant content. [The authors] have done this for me. —Kathleen Gosser, University of Louisville ” “
- 29. Affordable solutions, added value Maketechnology work for you with LMS integration for single sign-on access, mobile access to the digital textbook, and reports to quickly show you how each of your students is doing. And with our Inclusive Access program you can provide all these tools at a discount to your students. Ask your McGraw Hill representative for more information. 65% Less Time Grading Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images Checkmark: Jobalou/Getty Images Padlock: Jobalou/Getty Images ® Instructors: Student Success Starts with You Tools to enhance your unique voice Want to build your own course? No problem. Prefer to use our turnkey, prebuilt course? Easy. Want to make changes throughout the semester? Sure. And you’ll save time with Connect’s auto-grading too. Solutions for your challenges A product isn’t a solution. Real solutions are affordable, reliable, and come with training and ongoing support when you need it and how you want it. Visit www. supportateverystep.com for videos and resources both you and your students can use throughout the semester. Study made personal Incorporate adaptive study resources like SmartBook® 2.0 into your course and help your students be better prepared in less time. Learn more about the powerful personalized learning experience available in SmartBook 2.0 at www.mheducation.com/highered/connect/smartbook
- 30. Effective tools forefficient studying Connect is designed to make you more productive with simple, flexible, intuitive tools that maximize your study time and meet your individual learning needs. Get learning that works for you with Connect. “I really liked this app—it made it easy to study when you don't have your textbook in front of you.” - Jordan Cunningham, Eastern Washington University Study anytime, anywhere Download the free ReadAnywhere app and access your online eBook or SmartBook 2.0 assignments when it’s convenient, even if you’re offline. And since the app automatically syncs with your eBook and SmartBook 2.0 assignments in Connect, all of your work is available every time you open it. Find out more at www.mheducation.com/readanywhere Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero Images/Getty Images Calendar: owattaphotos/Getty Images Students: Get Learning that Fits You Learning for everyone McGraw Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students. Please contact your Accessibility Services Office and ask them to email [email protected], or visit www.mheducation.com/about/accessibility for more information. Everything you need in one place Your Connect course has everything you need—whether reading on your digital eBook or completing assignments for class, Connect makes it easy to get your work done.
- 31. xxx acknowledgments We have thepleasure of working with one of the best teams in the business. Their dedica- tion and effort significantly contribute to the quality of this revision. It all begins with the captain of the team, Michael Ablassmeir. As our editorial director, he provides the internal support to launch and manage the revision process. He also spends much time traveling in support of our products. Thanks for your continuing support over the last 10 years! To Anne Ehrenworth, product developer, thank you for paying attention to the details, keeping us all focused on the schedule, coordinating all the moving pieces, and your timely response to all our questions. To Debbie Clare, executive marketing manager, you are the energizer bunny who works tirelessly in support of this product. Your creativity, passion, and effort make you the abso- lute best at your job, and you push us more than anyone to raise our “marketing” game. Thank you! To Harvey Yep, your knowledge and experience with the production process keep us on schedule and responsive to all the change requests. We also appreciate your flexibility and creativity when solving production-related issues. To Patrick Soleymani, your support as our digital faculty consultant and subject matter expert is invaluable. Your editorial work on 10e was greatly appreciated, as was your col- laboration on the Teaching Resource Manual. Thank you for your commitment to our product. To Keri Johnson, assessment content project manager, and Matt Diamond, designer, thanks for all you do to in support of the product. We would also like to thank Cate Rzasa for her editorial assistance, Doreen MacAulay for her work on the Teaching Resource Manual, Jake Heller for the PowerPoint slides, Laci Lyons for her work on the test bank, and Ken Carson for his work on the Self-Assessments for Connect. We also want to thank Cathy DuBois, Associate Dean at Kent State University’s Col- lege of Business, for her guidance and support regarding our decision to include new cover- age on the topics of creating shared value and sustainable development. To the McGraw Hill company, a world-class publisher, we are grateful to be members of the family. Warmest thanks and appreciation go to the individuals who provided valuable input during the developmental stages of this edition, as follows: Steven Abram, Kirkwood Community College Lindy Archambeau, Warrington College of Business, University of Florida Mihran Aroian, University of Texas at Austin William Belcher, Troy University Michael Bento, Owens Community College Audrey Blume, Wilmington University Scott Boyar, University of Alabama–Birmingham Jack Cichy, Davenport University Susie Cox, University of Louisiana–Monroe Carrie L. Devone, Mott Community College Ed Drozda, Bryant University Kathleen Gosser, University of Louisville Jacob Heller, Tarleton State University Mark Hiatt, Kennesaw State University Gregory A. Hoffeditz, Southern Illinois University– Carbondale Aviad Israeli, Kent State University Jacquelyn Jacobs, University of Tennessee John Kirn, University of Kentucky Bobbie Knoblauch, Wichita State University Patricia Lanier, University of Louisiana at Lafayette Dave Lanzilla, College of Central Florida K. Doreen MacAulay, University of South Florida David Kim McKinnon, Arizona State University Benjamin David McLarty, Mississippi State University Erin McLaughlin, University of Alabama–Huntsville Tammy Rich, Pennsylvania College of Technology Gerald Schoenfeld, Florida Gulf Coast University
- 32. Michael Shane Spiller, WesternKentucky University Jerry Stevens, Texas Tech University Ronda Taylor, Ivy Tech Community College Jennifer Trout, Rasmussen College Kevin Walker, Eastern Oregon University Ray D. Walters, Fayetteville Technical Community College Tiffany Woodward, East Carolina University Carol Bormann Young, Metropolitan State University Mark Zarycki, Hillsborough Community College (Brandon) We would also like to thank the following colleagues who served as manuscript reviewers during the development of previous editions: G. Stoney Alder, University of Nevada–Las Vegas Phyllis C. Alderdice, Jefferson Community and Technical College Laura L. Alderson, University of Memphis M. Ruhul Amin, Bloomsburg University of Pennsylvania Danielle Beu Ammeter, University of Mississippi William Scott Anchors, University of Maine at Orono Jeffrey L. Anderson, Ohio University Darlene Andert, Florida Gulf Coast University Joel Andexler, Cuyahoga Community College John Anstey, University of Nebraska at Omaha Joseph Aranyosi, University of Phoenix Maria Aria, Camden County College Shelly Arneson, Colorado State University Lisa Augustyniak, Lake Michigan College Mona Bahl, Illinois State University Tanya Balcom, Macomb Community College Pamela Ball, Clark State Community College Amy S. Banta, Ohio University Valerie Barnett, Kansas State University Lynn Becker, University of Central Florida James D. Bell, Texas State University–San Marcos Jessie Bellflowers, Fayetteville Technical Community College Victor Berardi, Kent State University George Bernard, Seminole State College of Florida Patricia Bernson, County College of Morris David Bess, University of Hawaii Stephen Betts, William Paterson University Jim Bishop, New Mexico State University Randy Blass, Florida State University Larry Bohleber, University of Southern Indiana Alison Bolton, Solano Community College Melanie Bookout, Greenville Technical College Robert S. Boothe, University of Southern Mississippi Susan M. Bosco, Roger Williams University Anne Brantley, Central Piedmont Community College David Allen Brown, Ferris State University Roger Brown, Northwestern Oklahoma State University Reginald Bruce, University of Louisville Marit Brunsell, Madison Area Technical College Jon Bryan, Bridgewater State University Becky Bryant, Texas Woman’s University Paul Buffa, Jefferson College, Missouri Baptist University Mark David Burdsall, University of Pittsburgh Neil Burton, Clemson University Regina Cannon, Tarrant County College Barbara A. Carlin, University of Houston Shari Carpenter, Eastern Oregon University Tara Carr, University of Wisconsin–Green Bay Pamela Carstens, Coe College Julie J. Carwile, John Tyler Community College Daniel A. Cernas Ortiz, University of North Texas Glen Chapuis, St. Charles Community College Rod Christian, Mesa Community College Mike Cicero, Highline College Anthony Cioffi, Lorain County Community College Deborah Clark, Santa Fe Community College J. Dana Clark, Appalachian State University Acknowledgments xxxi
- 33. Dean Cleavenger, University ofCentral Florida Sharon Clinebell, University of Northern Colorado Loretta Fergus Cochran, Arkansas Tech University Glenda Coleman, South University Ron Cooley, South Suburban College Melissa M. Cooper, School of Management, Texas Woman’s University Gary Corona, Florida State College Anastasia Cortes, Virginia Tech Keith Credo, University of Louisiana–Lafayette Derek E. Crews, Texas Woman’s University Daniel J. Curtin, Lakeland Community College Ajay Das, Baruch College Justin L. Davis, University of West Florida Tom Deckelman, Owens Community College Linda I. DeLong, University of La Verne Margaret Deck, Virginia Tech Kate Demarest, University of Baltimore E. Gordon DeMeritt, Shepherd University Kathleen DeNisco, Erie Community College Anant R. Deshpande, SUNY Empire State College John DeSpagna, Nassau Community College Pamela A. Dobies, University of Missouri–Kansas City David Dore, Pima Community College Lon Doty, San Jose State University Ron Dougherty, Ivy Tech Community College/ Columbus Campus Scott Droege, Western Kentucky University Ken Dunegan, Cleveland State University Steven Dunphy, Indiana University Northwest Linda Durkin, Delaware County Community College Subhash Durlabhji, Northwestern State University of Louisiana Jack Dustman, Northern Arizona University Jennifer Egrie, Keiser University Ray Eldridge, Lipscomb University Bob Eliason, James Madison University Valerie Evans, Kansas State University W. Randy Evans, University of Tennessee at Chattanooga Paul A. Fadil, University of North Florida Crystal Saric Fashant, Metropolitan State University Jud Faurer, Metropolitan State University of Denver Bennie Felts, North Carolina Wesleyan College Judy Fitch, Augusta State University Carla Flores, Ball State University Christopher Flynn, University of North Florida David Foote, Middle Tennessee State University Lucy R. Ford, Saint Joseph’s University Charla Fraley, Columbus State Community College Gail E. Fraser, Kean University Dana Frederick, Missouri State University Tony Frontera, Binghamton University Dane Galden, Columbus State Community College Patricia Galitz, Southeast Community College Michael Garcia, Liberty University Barbara Garrell, Delaware County Community College Evgeniy Gentchev, Northwood University Lydia Gilmore, Columbus State Community College Terry Girdon, Pennsylvania College of Technology James Glasgow, Villanova University Ronnie Godshalk, Penn State University Connie Golden, Lakeland Community College Lacey Gonzalez-Horan, Lehigh Carbon Community College Deborah Cain Good, University of Pittsburgh Kris Gossett, Mercyhurst University Marie Gould, Horizons University Tita Gray, Maryland University of Integrative Health Ryan Greenbaum, Oklahoma State University– Stillwater Jan Grimes, Georgia Southern University Kevin S. Groves, Pepperdine University Joyce Guillory, Austin Community College William Habacivch, Central Penn College Gordon Haley, Palm Beach State College Reggie Hall, Tarleton State University Stephen F. Hallam, University of Akron Marie D.K. Halvorsen-Ganepola, University of Notre Dame Charles T. Harrington, Pasadena City College xxxii Acknowledgments
- 34. Lisa M. Harris, SoutheastCommunity College Joanne Hartsell, East Carolina University Santhi Harvey, Central State University Ahmad Hassan, Morehead State University Karen H. Hawkins, Miami Dade College, Kendall Campus Samuel Hazen, Tarleton State University Jack Heinsius, Modesto Junior College Duane Helleloid, University of North Dakota Cathy Henderson, Stephen F. Austin State University Evelyn Hendrix, Lindenwood University Nhung Hendy, Towson University Kim Hester, Arkansas State University Lara Hobson, Western Michigan University Anne Hoel, University of Wisconsin–Stout Mary Hogue, Kent State University David Hollomon, Victor Valley College James Hopkins, University of Georgia Tammy Hunt, University of North Carolina– Wilmington Perwaiz Ismaili, Metropolitan State University Aviad Israeli, Kent State University Edward Johnson, University of North Florida Nancy M. Johnson, Madison Area Technical College Paul D. Johnson, University of Mississippi Sue Joiner, Tarleton State University Kathleen Jones, University of North Dakota Rusty Juban, Southeastern Louisiana University Dmitriy Kalyagin, Chabot College Heesam Kang, Trident University International Marvin Karlins, University of South Florida Marcella Kelly, Santa Monica College Richard Kimbrough, University of Nebraska–Lincoln Renee N. King, Eastern Illinois University Shaun C. Knight, Penn State University Todd Korol, Monroe Community College Leo C. Kotrodimos, NC Wesleyan College Sal Kukalis, California State University–Long Beach Chalmer E. Labig Jr., Oklahoma State University Wendy Lam, Hawaii Pacific University Barbara Larson, Northeastern University Zahir Latheef, University of Houston–Downtown Robert L. Laud, William Paterson University Blaine Lawlor, University of West Florida Rebecca Legleiter, Tulsa Community College David Leonard, Chabot College Chris Levan, University of Tennessee– Chattanooga David Levy, United States Air Force Academy Chi Lo Lim, Northwest Missouri State University Natasha Lindsey, University of North Alabama Benjamin Lipschutz, Central Penn College Beverly Little, Western Carolina University Guy Lochiatto, MassBay Community College Mary Lou Lockerby, College of DuPage Michael Dane Loflin, York Technical College Jessica Lofton, University of Mount Olive Paul Londrigan, Charles Stewart Mott Community College Tom Loughman, Columbus State University Ivan Lowe, York Technical College Gregory Luce, Bucks County Community College Margaret Lucero, Texas A&M–Corpus Christi Charles Lyons, University of Georgia Professor Cheryl Macon, Butler County Community College Zengie Mangaliso, University of Massachusetts– Amherst James Manicki, Northwestern College Christine Marchese, Nassau Community College Christine I. Mark, University of Southern Mississippi Marcia A. Marriott, Monroe Community College Dr. David Matthews, SUNY Adirondack Brenda McAleer, University of Maine at Augusta Daniel W. McAllister, University of Nevada–Las Vegas David McArthur, Utah Valley University Tom McFarland, Mount San Antonio College Joe McKenna, Howard Community College Zack McNeil, Metropolitan Community College Jeanne McNett, Assumption College Spencer Mehl, Coastal Carolina Community College Acknowledgments xxxiii
- 35. Mary Meredith, University ofLouisiana Lori Merlak, Kirkwood Community College Douglas Micklich, Illinois State University Christine Miller, Tennessee Tech University Val Miskin, Washington State University Lorianne Mitchell, East Tennessee State University Kelly Mollica, University of Memphis Debra L. Moody, Virginia Commonwealth University Gregory Moore, Middle Tennessee State University Vivianne Moore, Davenport University Rob Moorman, Elon University Byron Morgan, Texas State University Jaideep Motwani, Grand Valley State University Troy Mumford, Colorado State University Jennifer Muryn, Robert Morris University Robert Myers, University of Louisville Christopher P. Neck, Arizona State University Patrick J. Nedry, Monroe County Community College Francine Newth, Providence College Margie Nicholson, Columbia College, Chicago Troy Nielson, Brigham Young University Thomas J. Norman, California State University– Dominguez Hills Paul O’Brien, Keiser University Nathan Oliver, University of Alabama at Birmingham Joanne Orabone, Community College of Rhode Island John Orife, Indiana University of Pennsylvania Eren Ozgen, Florida State University–Panama City Rhonda Palladi, Georgia State University Fernando Pargas, James Madison University Jack Partlow, Northern Virginia Community College Don A. Paxton, Pasadena City College John Paxton, Wayne State College John Pepper, University of Kansas Clifford R. Perry, Florida International University Sheila Petcavage, Cuyahoga Community College– Western Campus Barbara Petzall, Maryville University Thomas Philippe, St. Petersburg College Shaun Pichler, Mihaylo College of Business, California State University–Fullerton Michael Pirson, Fordham University Anthony Plunkett, Harrison College Beth Polin, Eastern Kentucky University Tracy H. Porter, Cleveland State University Paula Potter, Western Kentucky University Elizabeth Prejean, Northwestern State University Cynthia Preston, University of Northwestern Ohio Ronald E. Purser, San Francisco State University Gregory R. Quinet, Kennesaw State University Kenneth Rasheed, Chattahoochee Technical College George Redmond, Franklin University Deborah Reed, Benedictine College Chelsea Hood Reese, Southeast Community College Rosemarie Reynolds, Embry Riddle Aeronautical University H. Lynn Richards, Johnson County Community College Leah Ritchie, Salem State College Gary B. Roberts, Kennesaw State University Martha Robinson, University of Memphis Sean E. Rogers, University of Rhode Island Katherine Rosenbusch, George Mason University Barbara Rosenthal, Miami Dade Community College/ Wolfson Campus Gary Ross, Cardinal Stritch University David Ruderman, University of Colorado–Denver Catherine Ruggieri, St. John’s University–Staten Island Storm Russo, Valencia Community College Cindy Ruszkowski, Illinois State University William Salyer, Illinois State University Diane R. Scott, Wichita State University Alex J. Scrimpshire, Xavier University Marina Sebastijanovic, University of Houston Marianne Sebok, College of Southern Nevada Thomas J. Shaughnessy, Illinois Central College Joanna Shaw, Tarleton State University Sarah Shike, Western Illinois University xxxiv Acknowledgments
- 36. Randi Sims, Nova SoutheasternUniversity Raj K. Singh, University of California–Riverside Frederick J. Slack, Indiana University of Pennsylvania Erika E. Small, Coastal Carolina University Jim Smas, Kent State University Dustin Smith, Webster University Gerald F. Smith, University of Northern Iowa Joy Turnheim Smith, Elizabeth City State University Mark Smith, University of Southwest Louisiana Paula Kirch Smith, Cincinnati State Jeff Stauffer, Ventura College George E. Stevens, Kent State University Martin St. John, Westmoreland County Community College Raymond Stoudt, DeSales University Barb Stuart, Daniels College of Business Robert Scott Taylor, Moberly Area Community College Virginia Anne Taylor, William Patterson University Wynn Teasley, University of West Florida Marguerite Teubner, Nassau Community College Jerry Thomas, Arapahoe Community College C. Justice Tillman, Baruch College–City University of New York Jody Tolan, University of Southern California, Marshall School of Business Joseph Tomkiewicz, East Carolina University Robert Trumble, Virginia Commonwealth University Jim Turner, Davenport University Isaiah Ugboro, North Carolina Agricultural & Technical State University Brandi Ulrich, Anne Arundel Community College Anthony Uremovic, Joliet Junior College George Valcho, Bossier Parish Community College Barry Van Hook, Arizona State University Scot W. Vaver, University of Wisconsin–Stout Susan Verhulst, Grand View University Annie Viets, Prince Mohammad Bin Fahd University Tom Voigt Jr., Judson University Tim Waid, University of Missouri Carolyn Waits, Cincinnati State Bruce C. Walker, University of Louisiana at Monroe Wendy Walker, University of North Georgia Charlene Walters, Strayer University Tekle O. Wanorie, Northwest Missouri State University Charles Warren, Salem State College Kerry Webb, Texas Woman’s University Rick Webb, Johnson County Community College Brian D. Webster, Ball State University Velvet Weems-Landingham, Kent State University–Geauga Allen Weimer, University of Tampa Anthony Weinberg, Daymar College David A. Wernick, Florida International University James Whelan, Manhattan College John Whitelock, Community College of Baltimore/ Catonsville Campus Eric S. Williams, University of Alabama– Tuscaloosa Wallace Alexander Williams Jr., Texas A&M University–Commerce Joette Wisnieski, Indiana University of Pennsylvania Dr. Linsey Willis, Florida Atlantic University Colette Wolfson, Ivy Tech Community College M. Susan Wurtz, University of Northern Iowa Wendy V. Wysocki, Monroe County Community College Ned D. Young, Sinclair Community College Jan T. Zantinga, University of Georgia Mary E. Zellmer-Bruhn, University of Minnesota Mark Zorn, Butler County Community College Acknowledgments xxxv
- 37. From Angelo – Iwould like to thank my wife, Joyce, for being understanding, patient, and encouraging throughout the process of writing this edition. We have been at this for many years, and I could not do what I do without you. Your continued love and support helped me endure the trials of completing this revision. From Denise – To the women who have inspired my career as well as many of the specific choices in this revision—Pam Perrewé (an extraordinary mentor to whom I am unspeakably grateful), Sonya Premeaux, Anne O’Leary-Kelly, Lauren Simon, Angèle Gautreaux, Mallorre Dill, Lai Moy, and my late mother. And to my snug harbor, Joe—this revision happened because of your unwavering love and support as a husband and father and I am, as always, in awe of you. We hope you enjoy reading and applying the book. Best wishes for success in your career. Angelo Kinicki Denise Breaux Soignet xxxvi Acknowledgments
- 38. xxxvii contents Walkthrough Preface of10e xix PART 1 Introduction CHAPTER ONE The Exceptional Manager: What You Do, How You Do It 2 1.1 Management: What It Is, What Its Benefits Are 4 The Rise of a Leader 4 Key to Career Growth: “Doing Things I’ve Never Done Before” 4 The Art of Management Defined 5 Why Organizations Value Managers: The Multiplier Effect 6 What Are the Rewards of Studying and Practicing Management? 7 1.2 What Managers Do: The Four Principal Functions 8 Planning: Discussed in Part 3 of This Book 9 Organizing: Discussed in Part 4 of This Book 9 Leading: Discussed in Part 5 of This Book 9 Controlling: Discussed in Part 6 of This Book 10 1.3 Pyramid Power: Levels and Areas of Management 10 The Traditional Management Pyramid: Levels and Areas 10 Four Levels of Management 11 Areas of Management: Functional Managers versus General Managers 12 Managers for Three Types of Organizations: For-Profit, Nonprofit, Mutual-Benefit 13 Different Organizations, Different Management? 14 1.4 Roles Managers Must Play Successfully 14 The Manager’s Roles: How Do Managers Spend Their Time? 14 Three Types of Managerial Roles: Interpersonal, Informational, and Decisional 17 1.5 The Skills Exceptional Managers Need 18 1. Technical Skills—The Ability to Perform a Specific Job 19 2. Conceptual Skills—The Ability to Think Analytically 19 3. Human Skills—“Soft Skills,” the Ability to Interact Well with People 20 The Most Valued Traits in Managers 21 1.6 Seven Challenges to Being an Exceptional Manager 21 Challenge #1: Managing for Competitive Advantage—Staying Ahead of Rivals 21 Challenge #2: Managing for Technological Advances—Dealing with the “New Normal” 22 Challenge #3: Managing for Inclusion and Diversity— The Future Won’t Resemble the Past 25 Challenge #4: Managing for Globalization—The Expanding Management Universe 25 Challenge #5: Managing for Ethical Standards 26 Challenge #6: Managing for Sustainable Development —The Business of Green 27 Challenge #7: Managing for Happiness and Meaningfulness 28 How Strong Is Your Motivation to Be a Manager? The First Self-Assessment 29 1.7 Building Your Career Readiness 30 A Model of Career Readiness 31 Developing Career Readiness 35 Let Us Help 37 1.8 Career Corner: Managing Your Career Readiness 37 A Process for Developing Career Readiness 37 Make It a Habit 38 Key Terms Used in This Chapter 40 Key Points 40 Understanding the Chapter: What Do I Know? 41 Management in Action 41 Legal/Ethical Challenge 43 CHAPTER TWO Management Theory: Essential Background for the Successful Manager 44 2.1 Evolving Viewpoints: How We Got to Today’s Management Outlook 46 Creating Modern Management: The Handbook of Peter Drucker 46 Six Practical Reasons for Studying This Chapter 47 The Progression of Management Perspectives 48 2.2 Classical Viewpoint: Scientific and Administrative Management 48 Scientific Management: Pioneered by Taylor and the Gilbreths 49 Administrative Management: Pioneered by Spaulding, Fayol, and Weber 50 The Problem with the Classical Viewpoint: Too Mechanistic 51
- 39. 2.3 Behavioral Viewpoint:Behaviorism, Human Relations, and Behavioral Science 52 Early Behaviorism: Pioneered by Munsterberg, Follett, and Mayo 52 The Human Relations Movement: Pioneered by Maslow and McGregor 53 The Behavioral Science Approach 54 2.4 Quantitative Viewpoints: Operations Management and Evidence-Based Management 56 Operations Management: Being More Effective 56 Evidence-Based Management: Facing Hard Facts, Rejecting Nonsense 57 2.5 Systems Viewpoint 58 The Systems Viewpoint 58 The Four Parts of a System 58 2.6 Contingency Viewpoint 60 2.7 Contemporary Approaches: The Learning Organization, High-Performance Work Practices, and Shared Value and Sustainable Development 61 The Learning Organization: Sharing Knowledge and Modifying Behavior 61 High-Performance Work Practices 63 Shared Value and Sustainable Development: Going beyond Profits 64 Responsible Management Education: The United Nations Takes the Lead 65 2.8 Career Corner: Managing Your Career Readiness 65 Key Terms Used in This Chapter 68 Key Points 68 Understanding the Chapter: What Do I Know? 69 Management in Action 69 Legal/Ethical Challenge 71 PART 2 The Environment of Management CHAPTER THREE The Manager’s Changing Work Environment and Ethical Responsibilities: Doing the Right Thing 74 3.1 The Goals of Business: More Than Making Money 76 The Triple Bottom Line: People, Planet, and Profit 76 Younger Workers’ Search for Meaning 77 3.2 The Community of Stakeholders inside the Organization 77 Internal and External Stakeholders 77 Internal Stakeholders 77 3.3 The Community of Stakeholders outside the Organization 80 The Task Environment 80 The General Environment 84 3.4 The Ethical Responsibilities Required of You as a Manager 89 Defining Ethics and Values 91 Four Approaches to Resolving Ethical Dilemmas 94 White-Collar Crime, SarbOx, and Ethical Training 95 How Organizations Can Promote Ethics 97 3.5 The Social Responsibilities Required of You as a Manager 99 Corporate Social Responsibility: The Top of the Pyramid 100 Is Social Responsibility Worthwhile? Opposing and Supporting Viewpoints 100 One Type of Social Responsibility: Climate Change, Sustainable Development, and Natural Capital 102 Another Type of Social Responsibility: Undertaking Philanthropy, “Not Dying Rich” 102 Does Being Good Pay Off? 103 3.6 Corporate Governance 105 Corporate Governance and Ethics 105 Corporate Governance and Social Responsibility 105 3.7 Career Corner: Managing Your Career Readiness 107 Focus on the Greater Good and on Being More Ethical 108 Become an Ethical Consumer 109 Key Terms Used in This Chapter 110 Key Points 110 Understanding the Chapter: What Do I Know? 111 Management in Action 111 Legal/Ethical Challenge 113 LEARNING MODULE 1: Shared Value and Sustainable Development: A New Way to Think about Leading and Managing 116 1.1 From Corporate Social Responsibility to Creating Shared Value 117 Traditional CSR 118 Creating Shared Value 119 A Model of Shared Value Creation 120 How CSR and CSV Are Fundamentally Different 124 1.2 The Roles of Various Stakeholders in CSV 125 Global Collaboration: The Role of the United Nations 125 The Role of Businesses, Big and Small 127 The Role of Entrepreneurs 129 The Role of Business Schools 130 xxxviii Contents
- 40. 1.3 Progress, Challenges,and Recommendations for CSV 132 Current Progress and Challenges in Shared Value and Sustainable Development 133 Recommendations for Transitioning to a Shared-Value Mindset 135 Key Terms Used in This Learning Module 138 Key Points 138 CHAPTER FOUR Global Management: Managing across Borders 140 4.1 Globalization: The Collapse of Time and Distance 142 Competition and Globalization: Who Will Be No. 1 Tomorrow? 142 The Rise of the “Global Village” and Electronic Commerce 143 One Big World Market: The Global Economy 144 4.2 You and International Management 145 Why Learn about International Management? 146 The Successful International Manager: Geocentric, Not Ethnocentric or Polycentric 148 4.3 Why and How Companies Expand Internationally 149 Why Companies Expand Internationally 149 How Companies Expand Internationally 150 4.4 The World of Free Trade: Regional Economic Cooperation and Competition 153 Barriers to International Trade 154 Organizations Promoting International Trade 155 Major Trading Blocs 156 Most Favored Nation Trading Status 158 Exchange Rates 158 The BRICS Countries: Important International Competitors 160 4.5 The Value of Understanding Cultural Differences 161 The Importance of National Culture 161 Cultural Dimensions: The Hofstede and GLOBE Project Models 162 Other Cultural Variations: Language, Interpersonal Space, Communication, Time Orientation, Religion, and Law and Political Stability 165 U.S. Managers on Foreign Assignments: Why Do They Fail? 169 4.6 Career Corner: Managing Your Career Readiness 170 1. Listen and Observe 171 2. Become Aware of the Context 171 3. Choose Something Basic 171 Key Terms Used in This Chapter 173 Key Points 173 Understanding the Chapter: What Do I Know? 174 Management in Action 174 Legal/Ethical Challenge 176 PART 3 Planning CHAPTER FIVE Planning: The Foundation of Successful Management 178 5.1 Planning and Strategy 180 Planning, Strategy, and Strategic Management 180 Why Planning and Strategic Management Are Important 182 5.2 Fundamentals of Planning 184 Mission, Vision, and Values Statements 185 Three Types of Planning for Three Levels of Management: Strategic, Tactical, and Operational 188 5.3 Goals and Plans 190 Long-Term and Short-Term Goals 190 The Operating Plan and Action Plan 190 Plans Are Great, But . . . 191 5.4 Promoting Consistencies in Goals: SMART Goals, Management by Objectives, and Goal Cascading 192 SMART Goals 192 Management by Objectives: The Four-Step Process for Motivating Employees 193 Cascading Goals: Making Lower-Level Goals Align with Top Goals 195 The Importance of Deadlines 197 5.5 The Planning/Control Cycle 198 5.6 Career Corner: Managing Your Career Readiness 200 Becoming More Proactive 201 Keeping an Open Mind and Suspending Judgment 201 Key Terms Used in This Chapter 203 Key Points 203 Understanding the Chapter: What Do I Know? 204 Management in Action 204 Legal/Ethical Challenge 206 CHAPTER SIX Strategic Management: How Exceptional Managers Realize a Grand Design 208 6.1 Strategic Positioning and Levels of Strategy 210 Strategic Positioning and Its Principles 210 Contents xxxix
- 41. Levels of Strategy211 Does Strategic Management Work for Small as Well as Large Firms? 212 6.2 The Strategic-Management Process 213 The Five Steps of the Strategic-Management Process 213 6.3 Assessing the Current Reality 216 SWOT Analysis 216 Using VRIO to Assess Competitive Potential: Value, Rarity, Imitability, and Organization 219 Forecasting: Predicting the Future 220 Benchmarking: Comparing with the Best 221 6.4 Establishing Corporate-Level Strategy 223 Three Overall Types of Corporate Strategy 223 The BCG Matrix 224 Diversification Strategy 225 6.5 Establishing Business-Level Strategy 226 Porter’s Five Competitive Forces 226 Porter’s Four Competitive Strategies 227 An Executive’s Approach toward Strategy Development 229 6.6 Strategic Implementation: Creating, Executing, and Controlling Functional-Level Strategies 230 Strategic Implementation: Creating, Executing, and Controlling Functional-Level Strategies 230 Execution: Getting Things Done 230 The Three Core Processes of Business: People, Strategy, and Operations 231 Execution Roadblocks 233 Maintaining Strategic Control 235 6.7 Career Corner: Managing Your Career Readiness 235 Why Is Strategic Thinking Important to New Graduates? 235 Developing Strategic Thinking 236 Key Terms Used in This Chapter 238 Key Points 238 Understanding the Chapter: What Do I Know? 239 Management in Action 240 Legal/Ethical Challenge 241 LEARNING MODULE 2: Entrepreneurship 244 2.1 Entrepreneurship: Its Foundations and Importance 246 Entrepreneurship: It’s Not the Same as Self-Employment 246 Social Entrepreneurship 248 Characteristics of Entrepreneurs 249 Entrepreneurship Matters across the Globe 252 2.2 Starting a Business 254 Businesses Start with an Idea 254 Franchising: Building on Someone Else’s Idea 256 Writing the Business Plan 257 Choosing a Legal Structure 258 Obtaining Financing 259 Creating the “Right” Organizational Culture and Design 261 Why Entrepreneurial Ventures Fail 262 Key Terms Used in This Learning Module 264 Key Points 264 CHAPTER SEVEN Individual and Group Decision Making: How Managers Make Things Happen 266 7.1 Two Kinds of Decision Making: Rational and Nonrational 268 Rational Decision Making: Managers Should Make Logical and Optimal Decisions 269 Stage 1: Identify the Problem or Opportunity— Determining the Actual versus the Desirable 270 Stage 2: Think Up Alternative Solutions—Both the Obvious and the Creative 270 Stage 3: Evaluate Alternatives and Select a Solution—Ethics, Feasibility, and Effectiveness 270 Stage 4: Implement and Evaluate the Solution Chosen 270 What’s Wrong with the Rational Model? 271 Nonrational Decision Making: Managers Find It Difficult to Make Optimal Decisions 272 7.2 Making Ethical Decisions 275 The Dismal Record of Business Ethics 275 Road Map to Ethical Decision Making: A Decision Tree 277 7.3 Evidence-Based Decision Making and Data Analytics 279 Evidence-Based Decision Making 279 In Praise of Data Analytics 281 Big Data: What It Is, How It’s Used 282 7.4 Artificial Intelligence Is a Powerful Decision-Making Resource 286 Types of AI 287 AI’s Benefits 288 AI’s Drawbacks 289 7.5 Four General Decision-Making Styles 291 Value Orientation and Tolerance for Ambiguity 292 1. The Directive Style: Action-Oriented Decision Makers Who Focus on Facts 292 2. The Analytical Style: Careful Decision Makers Who Like Lots of Information and Alternative Choices 293 3. The Conceptual Style: Decision Makers Who Rely on Intuition and Have a Long-Term Perspective 293 4. The Behavioral Style: The Most People-Oriented Decision Makers 293 Which Style Do You Have? 294 xl Contents
- 42. 7.6 Decision-Making Biases294 Ten Common Decision-Making Biases: Rules of Thumb, or “Heuristics” 295 7.7 Group Decision Making: How to Work with Others 297 Advantages and Disadvantages of Group Decision Making 298 Groupthink 299 Characteristics of Group Decision Making 300 Group Problem-Solving Techniques: Reaching for Consensus 301 More Group Problem-Solving Techniques 301 7.8 Career Corner: Managing Your Career Readiness 304 Improving Your Critical Thinking and Problem-Solving Skills 304 Reflect on Past Decisions 304 Establish a Decision Methodology 306 Demonstrating These Competencies during a Job Interview 306 Key Terms Used in This Chapter 307 Key Points 307 Understanding the Chapter: What Do I Know? 308 Management in Action 309 Legal/Ethical Challenge 310 PART 4 Organizing CHAPTER EIGHT Organizational Culture and Structure: Drivers of Strategic Implementation 312 8.1 Aligning Culture, Structure, and Human Resource (HR) Practices to Support Strategy 314 How an Organization’s Culture, Structure, and HR Practices Support Strategic Implementation 314 8.2 What Kind of Organizational Culture Will You Be Operating In? 319 The Three Levels of Organizational Culture 320 How Employees Learn Culture: Symbols, Stories, Heroes, Rites and Rituals, and Organizational Socialization 322 Four Types of Organizational Culture: Clan, Adhocracy, Market, and Hierarchy 324 The Importance of Culture 327 Preparing to Assess P–O Fit before a Job Interview 329 8.3 The Process of Culture Change 330 1. Formal Statements 330 2. Slogans and Sayings 331 3. Rites and Rituals 331 4. Stories, Legends, and Myths 331 5. Leader Reactions to Crises 332 6. Role Modeling, Training, and Coaching 333 7. Physical Design 333 8. Rewards, Titles, Promotions, and Bonuses 334 9. Organizational Goals and Performance Criteria 334 10. Measurable and Controllable Activities 334 11. Organizational Structure 335 12. Organizational Systems and Procedures 335 Using Multiple Mechanisms to Drive Culture Change 336 Don’t Forget about Person–Organization Fit 337 8.4 The Major Features of an Organization 337 Major Features of Organizations: Four Proposed by Edgar Schein 338 Major Features of Organizations: Three More That Most Authorities Agree On 339 The Organization Chart 342 8.5 Eight Types of Organizational Structure 343 1. Traditional Designs: Simple, Functional, Divisional, and Matrix Structures 344 2. The Horizontal Design: Eliminating Functional Barriers to Solve Problems 347 3. Designs That Open Boundaries between Organizations: Hollow, Modular, and Virtual Structures 349 8.6 Career Corner: Managing Your Career Readiness 351 Understanding the Business and Where You “Fit” In 352 Becoming More Adaptable 352 Key Terms Used in This Chapter 354 Key Points 354 Understanding the Chapter: What Do I Know? 355 Management in Action 355 Legal/Ethical Challenge 357 CHAPTER NINE Human Resource Management: Getting the Right People for Managerial Success 360 9.1 Strategic Human Resource Management 362 Human Resource Management: Managing an Organization’s Most Important Resource 362 Internal and External HR Fit Promote Strategic HR Management 363 The Role of Human and Social Capital 364 What Is the Best Approach to Strategic Human Resource Management? 366 9.2 Recruitment and Selection: Putting the Right People into the Right Jobs 368 Recruitment: How to Attract Qualified Applicants 368 Contents xli
- 43. Selection: How toChoose the Best Person for the Job 371 9.3 Managing an Effective Workforce: Compensation and Benefits 378 Wages or Salaries 378 Incentives 378 Benefits 378 9.4 Onboarding and Learning and Development 379 Onboarding: Helping Newcomers Learn the Ropes 379 Learning and Development: Helping People Perform Better 381 9.5 Performance Management 385 Performance Management in Human Resources 385 Performance Appraisals: Are They Worthwhile? 386 Two Kinds of Performance Appraisal: Objective and Subjective 388 Who Should Make Performance Appraisals? 388 Effective Performance Feedback 391 9.6 Managing Promotions, Transfers, Disciplining, and Dismissals 392 Promotion: Moving Upward 392 Transfer: Moving Sideways 393 Disciplining and Demotion: The Threat of Moving Downward 393 Dismissal: Moving Out of the Organization 394 9.7 The Legal Requirements of Human Resource Management 395 1. Labor Relations 395 2. Compensation and Benefits 397 3. Health and Safety 397 4. Equal Employment Opportunity 397 Workplace Discrimination, Affirmative Action, Sexual Harassment, and Bullying 398 9.8 Labor–Management Issues 403 How Workers Organize 404 How Unions and Management Negotiate a Contract 404 The Issues Unions and Management Negotiate About 405 Settling Labor–Management Disputes 407 9.9 Career Corner: Managing Your Career Readiness 408 Becoming a Better Receiver 409 Key Terms Used in This Chapter 411 Key Points 411 Understanding the Chapter: What Do I Know? 412 Management in Action 413 Legal/Ethical Challenge 414 CHAPTER TEN Organizational Change and Innovation: Lifelong Challenges for the Exceptional Manager 416 10.1 The Nature of Change in Organizations 418 Fundamental Change: What Will You Be Called On to Deal With? 418 Two Types of Change: Reactive and Proactive 422 The Forces for Change Outside and Inside the Organization 423 10.2 Forms and Models of Change 427 Three Forms of Change: From Least Threatening to Most Threatening 427 Lewin’s Change Model: Unfreezing, Changing, and Refreezing 428 A Systems Approach to Change 430 10.3 Organizational Development: What It Is, What It Can Do 434 What Can OD Be Used For? 434 How OD Works 435 The Effectiveness of OD 437 10.4 Organizational Innovation 438 Approaches to Innovation 438 An Innovation System: The Supporting Forces for Innovation 440 10.5 The Threat of Change: Managing Employee Fear and Resistance 445 The Causes of Resistance to Change 445 Ten Reasons Employees Resist Change 446 10.6 Career Corner: Managing Your Career Readiness 448 Applying Self-Affirmation Theory 449 Practicing Self-Compassion 450 Key Terms Used in This Chapter 451 Key Points 451 Understanding the Chapter: What Do I Know? 452 Management in Action 452 Legal/Ethical Challenge 454 PART 5 Leading CHAPTER ELEVEN Managing Individual Differences and Behavior: Supervising People as People 456 11.1 Personality and Individual Behavior 458 The Big Five Personality Dimensions 458 Core Self-Evaluations 459 Emotional Intelligence: Understanding Your Emotions and the Emotions of Others 462 xlii Contents
- 44. 11.2 Values, Attitudes,and Behavior 464 Organizational Behavior: Trying to Explain and Predict Workplace Behavior 464 Values: What Are Your Consistent Beliefs and Feelings about All Things? 464 Attitudes: What Are Your Consistent Beliefs and Feelings about Specific Things? 465 Behavior: How Values and Attitudes Affect People’s Actions and Judgments 468 11.3 Perception and Individual Behavior 468 The Four Steps in the Perceptual Process 469 Five Distortions in Perception 469 The Self-Fulfilling Prophecy, or Pygmalion Effect 474 11.4 Work-Related Attitudes and Behaviors Managers Need to Deal With 475 1. Employee Engagement: How Connected Are You to Your Work? 476 2. Job Satisfaction: How Much Do You Like or Dislike Your Job? 478 3. Organizational Commitment: How Much Do You Identify with Your Organization? 479 Important Workplace Behaviors 479 11.5 The New Diversified Workforce 484 How to Think about Diversity: Which Differences Are Important? 485 Trends in Workforce Diversity 487 Barriers to Diversity 492 11.6 Understanding Stress and Individual Behavior 495 The Toll of Workplace Stress 495 How Does Stress Work? 496 The Sources of Job-Related Stress 497 Reducing Stressors in the Organization 499 11-7 Career Corner: Managing Your Career Readiness 502 Fostering a Positive Approach 502 Self-Managing Your Emotions 503 Key Terms Used in This Chapter 505 Key Points 505 Understanding the Chapter: What Do I Know? 507 Management in Action 507 Legal/Ethical Challenge 509 CHAPTER TWELVE Motivating Employees: Achieving Superior Performance in the Workplace 510 12.1 Motivating for Performance 512 Motivation: What It Is, Why It’s Important 512 The Four Major Perspectives on Motivation: An Overview 515 12.2 Content Perspectives on Employee Motivation 516 Maslow’s Hierarchy of Needs Theory: Five Levels 516 McClelland’s Acquired Needs Theory: Achievement, Affiliation, and Power 518 Deci and Ryan’s Self-Determination Theory: Competence, Autonomy, and Relatedness 519 Herzberg’s Two-Factor Theory: From Dissatisfying Factors to Satisfying Factors 521 12.3 Process Perspectives on Employee Motivation 524 Equity/Justice Theory: How Fairly Do You Think You’re Being Treated in Relation to Others? 525 Expectancy Theory: How Much Do You Want and How Likely Are You to Get It? 531 Goal-Setting Theory: Objectives Should Be Specific and Challenging but Achievable 533 12.4 Job Design Perspectives on Motivation 537 Fitting People to Jobs 538 Fitting Jobs to People 538 The Job Characteristics Model: Five Job Attributes for Better Work Outcomes 539 12.5 Reinforcement Perspectives on Motivation 542 The Four Types of Behavior Modification: Positive Reinforcement, Negative Reinforcement, Extinction, and Punishment 542 Using Behavior Modification to Motivate Employees 544 12.6 Using Compensation, Nonmonetary Incentives, and Other Rewards to Motivate: In Search of the Positive Work Environment 545 Is Money the Best Motivator? 546 Motivation and Compensation 546 Nonmonetary Ways of Motivating Employees 548 12.7 Career Corner: Managing Your Career Readiness 553 The Self-Management Process 554 Recharging 555 Key Terms Used in This Chapter 556 Key Points 556 Understanding the Chapter: What Do I Know? 557 Management in Action 558 Legal/Ethical Challenge 559 CHAPTER THIRTEEN Groups and Teams: Increasing Cooperation, Reducing Conflict 562 13.1 Groups versus Teams 564 Groups and Teams: How Do They Differ? 565 Formal versus Informal Groups 566 Types of Teams 566 13.2 Stages of Group and Team Development 570 Tuckman’s Five-Stage Model 570 Punctuated Equilibrium 573 Contents xliii
- 45. 13.3 Building EffectiveTeams 574 1. Collaboration—the Foundation of Teamwork 574 2. Trust: “We Need to Have Reciprocal Faith in Each Other” 575 3. Performance Goals and Feedback 576 4. Motivation through Mutual Accountability and Interdependence 577 5. Team Composition 577 6. Roles: How Team Members Are Expected to Behave 577 7. Norms: Unwritten Rules for Team Members 579 8. Effective Team Processes 580 Putting It All Together 581 13.4 Managing Conflict 581 The Nature of Conflict: Disagreement Is Normal 582 Can Too Little or Too Much Conflict Affect Performance? 583 Four Kinds of Conflict: Personality, Envy, Intergroup, and Cross-Cultural 583 How to Stimulate Constructive Conflict 585 Career Readiness Competencies to Help You to Better Handle Conflict 586 Dealing with Disagreements: Five Conflict-Handling Styles 587 13.5 Career Corner: Managing Your Career Readiness 588 Become a More Effective Team Member 589 Become a More Effective Collaborator 590 Key Terms Used in This Chapter 591 Key Points 591 Understanding the Chapter: What Do I Know? 592 Management in Action 592 Legal/Ethical Challenge 594 CHAPTER FOURTEEN Power, Influence, and Leadership: From Becoming a Manager to Becoming a Leader 596 14.1 The Nature of Leadership: The Role of Power and Influence 598 What Is the Difference between Leading and Managing? 598 Managerial Leadership: Can You Be Both a Manager and a Leader? 600 Six Sources of Power 600 Common Influence Tactics 602 How to Use the Tactics to Influence Outcomes 604 14.2 Trait Approaches: Do Leaders Have Distinctive Traits and Personal Characteristics? 605 Positive Task-Oriented Traits and Positive/Negative Interpersonal Attributes 605 What Do We Know about Gender and Leadership? 606 Are Knowledge and Skills Important? 609 So What Do We Know about Leadership Traits? 610 14.3 Behavioral Approaches: Do Leaders Show Distinctive Patterns of Behavior? 611 Task-Oriented Leader Behaviors 611 The Focus of Task-Oriented Leadership: “Here’s What We Do to Get the Job Done” 611 Relationship-Oriented Leader Behavior 612 The Focus of Relationship-Oriented Leadership: “The Concerns and Needs of My Employees Are Highly Important” 612 So What Do We Know about the Behavioral Approaches? 613 14.4 Situational Approaches: Does Leadership Vary with the Situation? 613 1. The Contingency Leadership Model: Fiedler’s Approach 613 2. The Path–Goal Leadership Model: House’s Approach 615 So What Do We Know about the Situational Approaches? 617 14.5 The Full-Range Model: Using Transactional and Transformational Leadership 619 Transactional and Transformational Leadership 619 The Best Leaders Are Both Transactional and Transformational 620 Four Key Behaviors of Transformational Leaders 621 So What Do We Know about Transformational Leadership? 623 14.6 Contemporary Perspectives and Concepts 624 Leader–Member Exchange Leadership: Having Different Relationships with Different Subordinates 624 Servant Leadership 625 The Power of Humility 627 Empowering Leadership 628 Ethical Leadership 629 Followers: What Do They Want, How Can They Help? 630 Abusive Supervision 631 14.7 Career Corner: Managing Your Career Readiness 632 Becoming More Self-Aware 633 Key Terms Used in This Chapter 635 Key Points 635 Understand the Chapter: What Do I Know? 636 Management In Action 636 Legal/Ethical Challenge 638 CHAPTER FIFTEEN Interpersonal and Organizational Communication: Mastering the Exchange of Information 640 15.1 The Communication Process: What It Is, How It Works 642 xliv Contents
- 46. Communication Defined: TheTransfer of Information and Understanding 642 How the Communication Process Works 643 Selecting the Right Medium for Effective Communication 645 15.2 How Managers Fit into the Communication Process 648 Formal Communication Channels: Up, Down, Sideways, and Outward 648 Informal Communication Channels 650 15.3 Barriers to Communication 653 1. Physical Barriers: Sound, Time, Space 654 2. Personal Barriers: Individual Attributes That Hinder Communication 654 3. Cross-Cultural Barriers 657 4. Nonverbal Communication: How Unwritten and Unspoken Messages May Mislead 658 5. Gender Differences 659 15.4 Social Media and Management 660 The Use of Social Media Has Changed the Fabric of Our Lives 661 Social Media and Managerial and Organizational Effectiveness 663 Downsides of Social Media 669 Managerial Considerations in Creating Social Media Policies 675 15.5 Improving Communication Effectiveness 678 Nondefensive Communication 678 Using Empathy 680 Being an Effective Listener 680 Being an Effective Writer 683 Being an Effective Speaker 684 15.6 Career Corner: Managing Your Career Readiness 686 Improve Your Face-to-Face Networking Skills 686 Key Terms Used in This Chapter 689 Key Points 689 Understanding the Chapter: What Do I Know? 690 Management in Action 690 Legal/Ethical Challenge 692 PART 6 Controlling CHAPTER SIXTEEN Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness 694 16.1 Control: When Managers Monitor Performance 696 16.2 The Control Process and Types of Control 699 Steps in the Control Process 699 Types of Controls 703 16.3 What Should Managers Control? 705 The Balanced Scorecard: A Comprehensive Approach to Managerial Control 705 Financial Perspective: “What Does Success Look Like to Our Shareholders?” 707 Customer Perspective: “How Do We Appear to Our Customers?” 710 Internal Business Perspective: “What Must We Do Extremely Well?” 711 Innovation and Learning Perspective: “Are We Equipped for Continued Value and Improvement?” 713 Strategy Mapping: Visual Representation of the Path to Organizational Effectiveness 715 16.4 Total Quality Management 717 Quality Control and Quality Assurance 718 Deming Management: The Contributions of W. Edwards Deming to Improved Quality 718 Core TQM Principles: Deliver Customer Value and Strive for Continuous Improvement 719 Applying TQM to Services 722 Some TQM Tools, Techniques, and Standards 724 Takeaways from TQM Research 726 16.5 Contemporary Control Issues 727 Using Artificial Intelligence to Control 727 Employee Tracking and Monitoring 729 16.6 Career Corner: Managing Your Career Readiness 731 1. Make Every Day Count 732 2. Stay Informed and Network 732 3. Promote Yourself 732 4. Roll with Change and Disruption 733 5. Small Things Matter during Interviews 733 6. Use Technology for Self-Development and Creating Good Habits 733 Epilogue: Suggestions for Future Success and Happiness 734 Key Terms Used in This Chapter 736 Key Points 736 Understanding the Chapter: What Do I Know? 737 Management in Action 737 Legal/Ethical Challenge 739 APPENDIX: THE PROJECT PLANNER’S TOOLKIT 741 CHAPTER NOTES CN-1 NAME INDEX IND1 ORGANIZATION INDEX IND6 GLOSSARY/SUBJECT INDEX IND10 Contents xlv
- 47. What’s Ahead inThis Chapter We describe the rewards, benefits, and privileges managers might expect. We also describe the four principal functions of management—planning, organizing, leading, and controlling. We consider levels and areas of man- agement and describe the three roles managers must play. We describe the three skills required of a manager and discuss seven challenges man- agers face in today’s world. We then focus on a model of career readiness and offer tips for building your career readiness. The chapter concludes with a Career Corner that presents a process that can be used to develop your career readiness. FORECAST After reading this chapter, you should be able to: LO 1-1 Identify the rewards of being an exceptional manager. LO 1-2 List the four principal functions of a manager. LO 1-3 Describe the levels and areas of management. LO 1-4 Identify the roles an effective manager must play. LO 1-5 Discuss the skills of an outstanding manager. LO 1-6 Identify the seven challenges faced by most managers. LO 1-7 Define the core competencies, knowledge, soft skills, attitudes, and other characteristics needed for career readiness and discuss how they can be developed. LO 1-8 Describe the process for managing your career readiness. PART 1 • INTRODUCTION The Exceptional Manager What You Do, How You Do It 1 Kapook2981/iStock/Getty Images
- 48. Our goal isto make this book as practical as possible for you. One place we do this is in the “Manage U” feature, like this one, which appears at the beginning of every chapter and offers practical advice for applying the topic of the chapter to your personal life and career. Here, for instance, we show you how to make teamwork one of your job strengths, starting now. This is an important skill that recruiters look for when hiring college graduates.1 Functions of Management In the chapter you will read about the four functions of management—planning, organizing, leading, and controlling. They represent essential activities that all managers undertake in the course of doing their jobs. Although they may sound a little abstract right now, you can use them today to work more successfully on team projects assigned by your professors. Applying the Functions of Management to School Projects Consider the students in a Princeton University summer business program. Working in teams, they had 10 weeks to prepare a pitch for a start-up idea and ask for funding. One of the teams ran a four-week pilot after-school program for five Trenton, NJ, girls and asked for $324,000 to scale the program up to include 40 girls on a year-round basis. Their pitch was that the program would help more young women graduate from high school and have a positive effect on the entire community. The students planned their pilot program, its budget, and its schedule and curriculum; they organized the four weeks of activities for the girls they recruited; they led the girls through each day’s events; and they used before and after surveys to control (that is, measure) the effects of their efforts. In other words, they relied on the four functions of management to ensure that they worked together to achieve their goals.2 Think about how you might make better use of planning and controlling in a team assignment for a course. You might draw up a detailed schedule of tasks and assign them to team members (planning), and then identify checkpoint dates on which you measure progress toward your deadline (controlling). You could set up a way to best use the resources at your disposal, such as time, library materials, personal expertise, and outside experts (organizing), and then use the progress checkpoints to motivate your fellow team members to continue putting forth their best effort (leading). The experience you can gain by using these essential management skills now will serve you well in your studies and throughout your career. Applying the Functions of Management in Your Personal Life Consider how you might use the functions of management to run your first 10K race. Your plan would include dates and times to exercise on your Google or Outlook calendar along with distances and ideas for how you will fuel your body on longer runs. You then would make sure you have the resources (time, clothing, support network, nutrition plan) to assist you along your journey (organizing). You also may find it valuable to have a running buddy during some of your workouts (leading). Alternatively, some people may find it motivational to have an accountability partner to review their time and distance totals each week (controlling). For Discussion Why would employers seek to hire people with good management skills? How can you strive to improve your managerial skills while working on class projects? Using Management Skills for College Success
- 49. 4 PART 1Introduction When chief executive officer Mary Barra took the reins of Detroit-based General Motors (GM) in January 2014, she became the first female CEO of a global auto- maker anywhere in the world. She also became only the 22nd woman at the helm of a Fortune 500 company, one of those 500 largest U.S. companies that appear on the prestigious annual list compiled by Fortune magazine. (Other female CEOs of major companies include Michele Buck of Hershey, Safra Catz of Oracle, and Accenture’s Julie Sweet.) What kind of a person is Barra, a 40-year GM veteran? She has been called “nearly impossible to dislike” and is credited with bringing a much-needed “calm stability” to GM. Among her many people skills is the ability to engage and motivate others, includ- ing top executives who may have vied for her job but who have been persuaded to stay and work with her.3 Are these qualities enough to propel someone to the top of a great organization? The Rise of a Leader Barra grew up in suburban Detroit, joined GM at age 18 as an intern on the factory floor, graduated from General Motors Institute (now Kettering University) with a degree in electrical engineering, and then became a plant engineer in GM’s Pontiac Division. Spotting her talent, GM gave her a scholarship to Stanford University, where she earned a graduate degree in business. She then began moving up the GM ladder, first as the executive assistant to the CEO and then as the company’s head of human resources—formerly often as high as female executives ever got in the auto industry and many others. In 2011, Barra’s big break came when she was promoted to lead GM’s $15 billion vehicle-development operations, a high-profile role that became the stepping-stone to the CEO spot. In 2016, she was also made chair of the board.4 Key to Career Growth: “Doing Things I’ve Never Done Before” Did it help that Barra has such deep experience in the auto industry and at GM in particular? No doubt it did. But there is another key to career growth—the ability to take risks. Jeff Bezos, the founder of Ama- zon.com, was holding down a lucrative job as a Wall Street hedge fund manager in the 1990s when he read that the Internet had recently grown 2,300% in a single year. Even though it meant leaving a stable job with a big bonus on the way, Bezos made the risky leap to the start-up he called Amazon, working out of a garage. “I knew that I might sin- cerely regret not having participated in this thing called the Internet that I thought was going to be a revolutionizing event,” he says. “When I thought about it that way . . . it was incredibly easy to make the LO 1-1 Identify the rewards of being an exceptional manager. 1.1 Management: What It Is, What Its Benefits Are THE BIG PICTURE Management is defined as the efficient and effective pursuit of organizational goals. Organizations, or peo- ple who work together to achieve a specific purpose, value managers because of the multiplier effect: Good managers have an influence on the organization far beyond the results that can be achieved by one person acting alone. Managers are well paid, with the chief executive officers (CEOs) and presidents of even small and midsize businesses earning good salaries and many benefits. The driving force. One quality that stands out about General Motors CEO Mary Barra is her obvious enthusiasm for cars. She is said to be given to talking excitedly about whatever car she is currently driving and what it demonstrates about GM’s product line. Do you think passion about one’s work is a necessary quality for managerial success? Mark Lennihan/AP Images
- 50. The Exceptional ManagerCHAPTER 1 5 decision.”5 Bezos built his company into the largest e-commerce hub in the world and now operates several other businesses and charities as well. He is one of the two or three richest people in the world. The Art of Management Defined Is being an exceptional manager a gift, like a musician having perfect pitch? Not exactly. But in good part it may be an art.6 Fortunately, it is one that is teachable. Management, said one pioneer of management ideas, is “the art of getting things done through people.”7 Getting things done. Through people. Thus, managers are task oriented, achieve- ment oriented, and people oriented. And they operate within an organization—a group of people who work together to achieve some specific purpose. More formally, management is defined as (1) the pursuit of organizational goals effi- ciently and effectively by (2) integrating the work of people through (3) planning, organiz- ing, leading, and controlling the organization’s resources. Note the words efficiently and effectively, which basically mean “doing things right.” ■ Efficiency—the means. Efficiency is the means of attaining the organization’s goals. To be efficient means to use resources—people, money, raw materials, and the like—wisely and cost-effectively. ■ Effectiveness—the ends. Effectiveness regards the organization’s ends, the goals. To be effective means to achieve results, to make the right decisions, and to suc- cessfully carry them out so that they achieve the organization’s goals. Good managers are concerned with trying to achieve both qualities. Often, however, organizations will erroneously strive for efficiency without being effective. Retired U.S. Army general Stanley McChrystal, former commander of all U.S. and coalition forces in Afghanistan, suggests that effectiveness is a more important outcome in today’s organizations.8 EXAMPLE Effectiveness versus Efficiency: Have Scientists Found a Viable Solution to Address Rising Demands for Meat? Current data suggest that 70% of the land on earth suitable for growing crops is currently being used for livestock farming. If this figure sounds high, consider that experts predict a 70% in- crease in the demand for meat products by 2050 as the earth’s population reaches 9 to 10 billion.9 With younger generations of consumers showing a clear preference for healthier nutrition sources and more sustainable alternatives to traditional live- stock production, how should the food industry evolve in order to meet the changing population’s needs? At least 30 start-ups across the globe think they have the answer. Scientists at companies like Mosa Meat, Finless Foods, Memphis Meats, SuperMeat, and Future Meat Technologies are “growing” meat in laboratories using stem-cell samples taken from live animals—no slaughter required.10 The resulting prod- uct is referred to interchangeably as “cultured meat,” “clean meat,” and “lab-grown meat,” and could potentially provide a healthier, less expensive, and more sustainable food source. Sound crazy? Then you should know these companies have already received investments from billionaires Bill Gates and Richard Branson,11 and industry giants Cargill12 and Tyson Foods.13 In 2019, Israeli-based Future Meat Technologies raised $14 million in funding to build a production plant,14 and Memphis Meats received $161 million in 2020 for the same reason.15 It’s possible that lab-grown meat products will hit supermarket shelves in as little as one to two years, with some analysts fore- casting an $85 billion-dollar market for cultured meats by 2030.16 Let’s take a look at this issue from both an effectiveness and efficiency perspective. Effectiveness. If you’re currently having visions of Franken- stein, you’re not alone. There is evidence that the idea of lab- grown meet feels unnatural and even repulsive to many consumers. Can this product ever be socially acceptable enough to present a viable solution?17 Clearly if cultured meat producers wish to be successful, then they will need to supply food that con- sumers are willing to purchase and eat. For those who aren’t completely turned off by the idea of a steak grown from stem cells, there are other concerns. For
- 51. 6 PART 1Introduction Why Organizations Value Managers: The Multiplier Effect Some great achievements of history, such as scientific discoveries or works of art, were accomplished by individuals working quietly by themselves. But so much more has been achieved by people who were able to leverage their talents and abilities by being managers. For instance, of the top 10 great architectural wonders of the world named by the American Institute of Architects, none was built by just one person. All were triumphs of management, although some reflected the vision of an indi- vidual. (The wonders are the Great Wall of China, the Great Pyramid, Machu Pic- chu, the Acropolis, the Coliseum, the Taj Mahal, the Eiffel Tower, the Brooklyn Bridge, the Empire State Building, and Frank Lloyd Wright’s Falling Water house in Pennsylvania.) example, consumers are skeptical of claims that cultured meats will taste the same as the farmed meats they are accustomed to eating. Taste-testers at a Memphis Meats event in San Fran- cisco said they would eat the company’s lab-grown chicken product again and that it “pretty much tastes like chicken.”18 Still, many worry that laboratories just won’t be able to repli- cate the taste and texture of traditional animal meat.19 There are also widespread fears of unforeseen negative health consequences. According to researchers at Maastricht University in the Netherlands, growing meat in laboratories eliminates the need for antibiotics and gives scientists control over things like cholesterol and fat levels, making these prod- ucts a healthier option than conventional meats. But a substan- tial portion of consumers aren’t ready to take the risk.20 Efficiency. Lab-grown meat start-ups claim to offer a more en- vironmentally friendly solution to increasing meat demands. For example, according to some research, it may be possible to pro- duce as many as 175 million quarter-pound hamburgers with the stem cells from only one cow. (It currently takes about 440,000 cows to produce the same amount of meat.) Further, both Future Meat Technologies and Mosa Meats say their production pro- cesses use 99% less land and 96% less water than livestock production.21 But some experts believe that growing meat in labs could foster climate change. “Lab meat doesn’t solve anything from an environmental perspective, since the energy emissions are so high,” said Marco Springmann, senior environmental re- searcher at the University of Oxford. He added, “So much money is poured into meat labs, but even with that amount of money, the product still has a carbon footprint that is roughly five times the carbon footprint of chicken and ten times higher than plant-based processed meats.” Scientists won’t be able to assess the true carbon footprint of cultured meat until produc- tion facilities are operational, but some research suggests the potential for high levels of carbon dioxide pollution. This would question the environmental benefit of lab-grown meat, given that CO2 stays in the atmosphere for several hundred years, while the methane produced in cattle farming dissipates after about 12 years.22 There is also the issue of whether cultured meat products will ever be affordable. In 2013 a pound of lab-grown ham- burger meat cost an astonishing $1.2 million, but process and technology improvements have continued to drive these costs down. By 2018 a pound of Memphis Meats ground beef had dropped to around $2,400,23 and by late 2019, Future Meats could produce a pound of chicken and a pound of beef for $150 and $200, respectively.24 Preliminary data surrounding all of these issues—from so- cial acceptability to environmental impacts to costs—are mixed.25 It will be difficult to answer any of these questions with precision until cultured meats are available to the mass market and more data are available. YOUR CALL Do you think that lab-grown meat companies will be effective in reaching their goals? Do you believe their processes will prove to be more or less efficient than traditional livestock production? Lab-grown meat. Have scientists found a way to address rising food demands by growing meat in laboratories? Would you be willing to try a burger made from a cow’s stem cells? nevodka/Shutterstock
- 52. The Exceptional ManagerCHAPTER 1 7 Good managers create value. The reason is that in being a manager you have a mul- tiplier effect: Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone. Thus, while a solo operator such as a salesperson might accomplish many things and incidentally make a very good living, his or her boss could accomplish a great deal more—and could well earn two to seven times the income. And the manager will undoubtedly have a lot more influence. What Are the Rewards of Studying and Practicing Management? Are you studying management but have no plans to be a manager? Or are you trying to learn techniques and concepts that will help you be an exceptional management practitio- ner? Either way, you will use what you learn. Managerial competencies including time man- agement, people skills, mastery of interpersonal and electronic communication, and the capacity to organize and plan are essential in both managerial and nonmanagerial careers. The Rewards of Studying Management Students sign up for an introductory management course for all kinds of reasons. Many, of course, are planning business careers, but others are taking it to fulfill a requirement or an elective. Some students are in technical or nonprofit fields—computer science, education, health, and the like—and never expect to have to supervise people. Here are just a few of the payoffs of studying management as a discipline: ■ You will have an insider’s understanding of how to deal with organizations from the outside. Since we all are in constant interaction with all kinds of organiza- tions, it helps to understand how they work and how the people in them make decisions. Such knowledge may give you skills that you can use in dealing with organizations from the outside, as a customer or investor, for example. ■ You will know from experience how to relate to your supervisors. Since most of us work in organizations and most of us have bosses, studying management will enable you to understand the pressures managers deal with and how they will best respond to you. ■ You will better interact with co-workers. The kinds of management policies in place can affect how your co-workers behave. Studying management can give you the understanding of teams and teamwork, cultural differences, conflict and stress, and negotiation and communication skills that will help you get along with fellow employees. ■ You will be able to manage yourself and your career. Management courses in general, and this book in particular, give you the opportunity to realize insights about yourself—your personality, emotions, values, perceptions, needs, and goals. We help you build your skills in areas such as self-management, listening, handling change, managing stress, avoiding groupthink, and coping with orga- nizational politics. ■ You might make more money during your career. Managers are well compen- sated in comparison to other workers. At the lower rungs, managers may make between $33,000 and $87,000 a year; in the middle levels, between $45,000 and $146,000.26 (For examples of managerial salaries, go to www.bls.gov/ooh/ management/home.html.) There are also all kinds of fringe benefits and status rewards that go with being a manager, ranging from health insurance to stock options to large offices. And the higher you ascend in the management hierar- chy, the more privileges may come your way. The Rewards of Practicing Management Many young people want not only to make money but also to make a difference. As Swarthmore psychology professor Barry Schwartz, author of Why We Work, suggests, “We care about more than money. We The multiplier effect. The Great Wall of China was constructed over thousands of years by hundreds of thousands of workers. Imagine the management required to coordinate such an effort! axz700/Shutterstock
- 53. 8 PART 1Introduction want work that is challenging and engaging, that enables us to exercise some discretion and control over what we do, and that provides us with opportunities to learn and grow.”27 Becoming a management practitioner offers many rewards apart from money and status, as follows: ■ You and your employees can experience a sense of accomplishment. Every suc- cessful goal accomplished provides you not only with personal satisfaction but also with the satisfaction of all those employees you directed who helped you accomplish it. ■ You can stretch your abilities and magnify your range. Every promotion up the hierarchy of an organization stretches your abilities, challenges your talents and skills, and magnifies the range of your accomplishments. ■ You can build a catalog of successful products or services. Every product or service you provide—the personal Eiffel Tower or Empire State Building you build, as it were—becomes a monument to your accomplishments. Indeed, studying management may well help you in running your own business. ■ You can become a mentor and help others. According to one survey, 75% of executives who had a mentor—an experienced person who provides guidance to someone new to the work world—said the relationship was crucial to advancing their careers.28 ● These three machinists are using several managerial skills to produce better products. One involves mentoring from the machinist in the middle. stockbroker/123RF What do you as a manager do to get things done—that is, to achieve the stated goals of the organization you work for? You perform what is known as the management pro- cess, also called the four management functions: planning, organizing, leading, and controlling. (The abbreviation “POLC” may help you to remember them.) As Figure 1.1 illustrates, all these functions affect one another, are ongoing, and are performed simultaneously. LO 1-2 List the four principal functions of a manager. 1.2 What Managers Do: The Four Principal Functions THE BIG PICTURE Management has four functions: planning, organizing, leading, and controlling.
- 54. The Exceptional ManagerCHAPTER 1 9 Planning You set goals and decide how to achieve them. Organizing You arrange tasks, people, and other resources to accomplish the work. Controlling You monitor performance, compare it with goals, and take corrective action as needed. Leading You motivate, direct, and otherwise influence people to work hard to achieve the organization’s goals. FIGURE 1.1 The management process What you as a manager do to get things done—to achieve the stated goals of your organization. Although the process of management can be quite varied, these four functions repre- sent its essential principles. Indeed, as a glance at our text’s table of contents shows, they form four of the part divisions of the book. Let’s consider what the four functions are, using the management (or “administration,” as it is called in nonprofit organiza- tions) of your college to illustrate them. Planning: Discussed in Part 3 of This Book Planning is defined as setting goals and deciding how to achieve them. Your college was established for the purpose of educating students, and its present managers, or admin- istrators, now must decide the best way to accomplish this. Which of several possible degree programs should be offered? Should the college be a residential or a commuter campus? What sort of students should be recruited and admitted? What kind of faculty should be hired? What kind of buildings and equipment are needed? Organizing: Discussed in Part 4 of This Book Organizing is defined as arranging tasks, people, and other resources to accomplish the work. College administrators must determine the tasks to be done, by whom, and what the reporting hierarchy is to be. Should the institution be organized into schools with departments, with department chairpersons reporting to deans who in return report to vice presidents? Should the college hire more full-time instructors than part-time instructors? Should English professors teach just English literature or also composition, developmental English, and “first-year experience” courses? Leading: Discussed in Part 5 of This Book Leading is defined as motivating, directing, and otherwise influencing people to work hard to achieve the organization’s goals. At your college, leadership begins, of course, with the president (who would be the CEO in a for-profit organization). He or she is the one who must inspire faculty, staff, students, alumni, wealthy donors, and residents
- 55. 10 PART 1Introduction of the surrounding community to help realize the college’s goals. As you might imag- ine, these groups often have different needs and wants, so an essential part of leader- ship is resolving conflicts. Controlling: Discussed in Part 6 of This Book Controlling is defined as monitoring performance, comparing it with goals, and taking cor- rective action as needed. Is the college discovering that fewer students are majoring in nursing than they did five years ago? Is the fault with a change in the job market? With the quality of instruction? With the kinds of courses offered? Are the nursing depart- ment’s student recruitment efforts not going well? Should the department’s budget be reduced? Under the management function of controlling, college administrators must deal with these kinds of issues. ● The workplace of the future may resemble a symphony orchestra, famed management theorist Peter Drucker said.29 Employees, especially so-called knowledge workers—those who have a great deal of technical skills—can be compared to concert musicians. Their managers can be seen as conductors. In Drucker’s analogy, musicians are used for some pieces of music—that is, work projects—and not others, and they are divided into different sections (teams) based on their instruments. The conductor’s role is not to play each instrument better than the musicians but to lead them all through the most effective performance of a par- ticular work. This model differs from the traditional pyramid-like organizational model, where one leader sits at the top, with layers of managers beneath, each of whom must report to and justify their work to the manager above (what’s called accountability, as we discuss in Chapter 8). We therefore need to take a look at the traditional arrange- ment first. The Traditional Management Pyramid: Levels and Areas A new Silicon Valley technology start-up company staffed by young people in sandals and shorts may be so small and so loosely organized that only one or two members may be said to be a manager. General Motors or the U.S. Army, in contrast, have thousands of managers doing thousands of different things. Is there a picture we can draw that applies to all the different kinds of organizations and describes them in ways that make sense? Yes: by levels and by areas, as the pyramid shows. (See Figure 1.2.) LO 1-3 Describe the levels and areas of management. 1.3 Pyramid Power: Levels and Areas of Management THE BIG PICTURE Within an organization, there are four levels of managers: top, middle, and first-line managers as well as team leaders. Managers may also be general managers, or they may be functional managers, responsible for just one organizational activity, such as research and development (RD), marketing, finance, production, or human resources. Managers may work for for-profit, nonprofit, or mutual-benefit organizations.
- 56. The Exceptional ManagerCHAPTER 1 11 Top managers Levels of Management Middle managers First-line managers Team leaders Nonmanagerial employees Human resources Areas of Management Production Finance Marketing RD FIGURE 1.2 The levels and areas of management Top managers make long-term decisions, middle-managers implement those decisions, first- line managers make short-term decisions, and team leaders facilitate team activities toward achieving a goal. Four Levels of Management Not everyone who works in an organization is a manager, of course, but those who are may be classified into four levels—top, middle, and first-line managers, and team leaders. Nonmanagerial employees represent the foundation of an organizational pyramid. Top Managers: Determining Overall Direction Their offices may be equipped with expensive leather chairs and have lofty views. Or, as with one Internet company, they may have plastic lawn chairs in the CEO’s office and beat-up furniture in the lobby. Whatever their decor, an organization’s top managers tend to have titles such as chief executive officer (CEO), chief operating officer (COO), president, and senior vice president. Some may be the stars in their fields, the men and women whose pictures appear on the covers of business magazines, people such as Lockheed Martin CEO Marillyn Hew- son (now retired), Lucasfilm president Kathleen Kennedy, or Apple CEO Tim Cook, all of whom have appeared on the front of Fortune. Top managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it. They need to pay a lot of atten- tion to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them. Thus, executives at this level must be future oriented, strategic, and able to deal with uncertain, highly competi- tive conditions. These people stand at the summit of the management pyramid. But the nature of a pyramid is that the farther you climb, the less space remains at the top. Thus, most pyramid climbers never get to the apex. However, that doesn’t mean that you shouldn’t try. Indeed, you might end up atop a much smaller pyramid of some other organization than the one you started out in—and happier with the result. Successful top manager. India- born Satya Nadella, who joined Microsoft in 1992, became CEO of the technology company in early 2014 and has helped transition it to cloud computing. His net worth in 2019 was over $320 million. Do you see yourself joining a company and staying with it for life, as Nadella has (after an earlier job at Sun Microsystems), or is that even possible anymore? Justin Sullivan/Getty Images
- 57. 12 PART 1Introduction Middle Managers: Implementing Policies and Plans Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them. Titles might include plant manager, district manager, and regional manager, among others. In the nonprofit world, middle managers may have titles such as clinic director, dean of student ser- vices, and the like. Middle managers are critical for organizational success because they implement the strategic plans created by CEOs and top managers. (Strategic planning is discussed in Chapter 6.) In other words, these managers have the type of “high-touch” jobs—dealing with people rather than computer screens or voice-response systems—that can directly affect employees, customers, and suppliers. First-Line Managers: Directing Daily Tasks The job titles at this level of the man- agerial pyramid tend to be on the order of department head, foreperson, or supervisor— clerical supervisor, production supervisor, research supervisor, and so on. Following the plans of middle and top managers, first-line managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel, who are, of course, all those people who work directly at their jobs but don’t oversee the work of others. Team Leaders Teamwork is an essential component of organizational success. Organizations use teams for tasks that can’t be accomplished by one person alone because they require a variety of perspectives, knowledge, and skills. Team leaders facili- tate team members’ activities to help teams achieve their goals. In other words, team leaders see to it that their team members have everything they need to be successful. Recent research published in Harvard Business Review suggests that the most suc- cessful teams possess four key elements—compelling direction, strong structure, a supportive context, and a shared mindset—and that team leaders are uniquely posi- tioned to positively impact these elements.30 Building effective teams is discussed in Chapter 13. Nonmanagerial Employees Nonmanagerial employees either work alone on tasks or with others on a variety of teams. They do not formally supervise or manage other people, and they are the bulk of a company’s workforce. Areas of Management: Functional Managers versus General Managers We can represent the levels of management by slicing the organizational pyramid hori- zontally. We can also slice the pyramid vertically to represent the organization’s depart- ments or functional areas, as we did in Figure 1.2. In a for-profit technology company, these functional areas might include research and development, marketing, finance, production, and human resources. In a nonprofit college, these might be faculty, student support staff, finance, maintenance, and admin- istration. Whatever the names of the departments, the organization is run by two types of managers—functional and general. Functional Managers: Responsible for One Activity If your title is Vice Presi- dent of Production, Director of Finance, or Administrator for Human Resources, you are a functional manager. A functional manager is responsible for just one organizational activity. Google is particularly noteworthy for its unusual functional management job titles, such as Director of Organic and Softlines, Vice President of Marketing, Mobile, and Wearable Hardware, and Experience Design Lead. Ultimate Software also has unusual functional titles, such as Chief Architect for Emerging Technologies and Iden- tity Access Management Team Lead.
- 58. The Exceptional ManagerCHAPTER 1 13 General Managers: Responsible for Several Activities If you are working in a small organization of, say, 100 people and your title is Executive Vice Pres- ident, you are probably a general manager over several departments, such as production and finance and human resources. A general manager is responsible for several organizational activities. At the top of the pyramid, general managers are those who seem to be the subject of news stories in magazines such as Bloomberg Businessweek, Fortune, Forbes, and Inc. Examples are big-company CEOs Mark Clouse of Camp- bell Soup and Jeff Bezos of Amazon.com, as well as small-company CEOs such as Emily Weiss, who founded Glossier, an online beauty-product retailer. But not all general managers are in for-profit organizations. Susan L. Solomon is the chief executive officer of the nonprofit New York Stem Cell Foundation. As the par- ent of a 10-year-old boy diagnosed with Type 1 diabetes, Solomon began reading widely about the disease and came to think that stem cells might transform the under- standing and treatment of diabetes, which led her to co- found NYSCF as a research foundation out of her apartment in 2005. As CEO, Solomon has helped to raise $150 million, which makes NYSCF one of the big- gest nonprofits dedicated to stem-cell research, employing 45 full-time scientists and funding 75 others around the world. She started her career in law, then went into business and finance, worked for the online auction house Sothebys.com, then formed her own consulting business.31 Managers for Three Types of Organizations: For-Profit, Nonprofit, Mutual-Benefit There are three types of organizations classified according to the three purposes for which they are formed—for-profit, nonprofit, and mutual-benefit. 1. For-Profit Organizations: For Making Money For-profit, or business, organi- zations are formed to make money, or profits, by offering products or services. When most people think of “management,” they think of business organiza- tions, ranging from Allstate to Zynga, from Amway to Zagat. There are about 3,600 public companies in the United States today.32 This is less than half of the 7,400 listed in 1996.33 2. Nonprofit Organizations: For Offering Services Managers in nonprofit orga- nizations are often known as administrators. Nonprofit organizations may be either in the public sector, such as the University of California, or in the pri- vate sector, such as Stanford University. Either way, their purpose is to offer services to some clients, not to make a profit. Examples of such organizations are hospitals, colleges, and social-welfare agencies (the Salvation Army and the Red Cross). According to the National Center for Charitable Statistics (NCCS), more than 1.4 million nonprofit organizations are registered in the United States. This number includes public charities, private foundations, and other types of nonprofit organizations, including chambers of commerce, fra- ternal organizations and civic leagues.34 One particular type of nonprofit organization is called the commonweal organization (not to be confused with commonwealth organization). Unlike nonprofit service organizations, which offer services to some clients, Nonprofit general manager. As CEO of the nonprofit New York Stem Cell Foundation, Susan L. Solomon does a lot of fundraising, directs the activities of the foundation’s research scientists, and keeps up with the latest scientific research. “As a lawyer, you learn how to learn about a new field instantly,” she says. In addition, she learned how to read quickly. Do you think managerial skills are different for nonprofit and for-profit organizations? D Dipasupil/Getty Images
- 59. 14 PART 1Introduction commonweal organizations offer services to all clients within their jurisdic- tions. Examples are the military services, the U.S. Postal Service, and your local fire and police departments. 3. Mutual-Benefit Organizations: For Aiding Members Mutual-benefit organiza- tions are voluntary collections of members—political parties, farm coopera- tives, labor unions, trade associations, and clubs—whose purpose is to advance members’ interests. There are over 9,500 such organizations.35 Different Organizations, Different Management? If you became a manager, would you be doing the same types of things regardless of the type of organization? Generally you would be; that is, you would be performing the four management functions—planning, organizing, leading, and controlling—that we described in Section 1.2. The single biggest difference, however, is that in a for-profit organization, the mea- sure of success is how much profit (or loss) it generates. In the other two types of orga- nizations, although income and expenditures are very important concerns, the measure of success is usually the effectiveness of the services delivered—how many students were graduated, if you’re a college administrator, or how many crimes were prevented or solved, if you’re a police chief. ● Clearly, being a successful manager requires playing several different roles and exercis- ing several different skills. We discuss managerial roles in this section and key manage- rial skills in the next. The Manager’s Roles: How Do Managers Spend Their Time? Maybe, you think, it might be interesting to follow some managers around to see what it is they actually do. That’s exactly what management scholar Henry Mintzberg did when, in the late 1960s, he shadowed five chief executives for a week and recorded their working lives.36 The portrait looked like this: ■ “There was no break in the pace of activity during office hours.” ■ “The mail (average of 36 pieces per day), telephone calls (average of five per day), and meetings (average of eight) accounted for almost every minute from the moment these executives entered their offices in the morning until they departed in the evening.”37 LO 1-4 Identify the roles an effective manager must play. 1.4 Roles Managers Must Play Successfully THE BIG PICTURE Managers tend to work long hours and their time is always in demand; their work is characterized by near constant communication with others; and their jobs require impeccable time-management skills. According to management scholar Henry Mintzberg, managers play three roles—interpersonal, informational, and deci- sional. Interpersonal roles include figurehead, leader, and liaison activities. Informational roles are monitor, disseminator, and spokesperson. Decisional roles are entrepreneur, disturbance handler, resource allocator, and negotiator.
- 60. The Exceptional ManagerCHAPTER 1 15 Although these findings have historical value, times have changed, and they may not reflect today’s reality. Two management scholars—Michael Porter and Nitin Nohria—thus decided to update this research by examin- ing how 27 CEOs of multi-billion-dollar companies spent their time on a daily basis over three months.38 Here is a summary of some of Porter and Nohria’s key findings, important for any prospective manager, along with a discussion of how they compare with Mintzberg’s earlier work: 1. Managers Are Always Working and They Are in Constant Demand Today’s managers worked an average of 9.7 hours each weekday. True “breaks” were rare, with most working at least a couple of hours on 79% of their weekend days and 70% of their vacation days. Results showed the typical modern manager clocked a 62.5 hour workweek. Add to this the fact that managers spent most if not all of those 60+ hours satisfying the demands of others, and it becomes clear that managing is one tough job. The laundry list of interests demand- ing a piece of the CEO’s time was endless. Both internal constituencies (direct reports, senior leaders, lower-level managers, and nonmanagerial employees) and external con- stituencies (suppliers, lawyers, service providers, the media, and charitable organiza- tions) continuously vied for a CEO’s time. What’s changed for managers since Mintzberg’s study many years ago? Not much, it turns out. Mintzberg found that long hours at work were standard, with 50 hours a week being typical and up to 90 hours not unheard of. He also observed that managers almost never had “a true break” from dealing with constituencies—not even on their lunch hours.39 2. Managers Spend Virtually All of Their Work Time Communicating with Others Results showed that CEOs spent 100% of their work time engaged in some form of communication with others. That’s right—a full 100% of their work time involved communication! Face-to-face interactions accounted for 61% of managers’ work time and electronic communications took up 24%. Managers spent the remaining 15% of their work time on phone calls and reading/responding to letters. Further, many of these communications took place during meetings. Porter and Nohria concluded that these leaders attended a whopping 37 meetings per week, on average. If we compare these findings with Mintzberg’s observations, we see that the role of the manager as a constant communicator was and still is the norm. Much like today, managers in the 1960s spent lots of time in meetings and lots of time communicating. What’s changed are the methods of communication available to today’s managers and the complexity this adds to an already demanding gig. The telephone conversations that once filled a significant portion of a manager’s day have been edged out by e-mail, tex- ting, and social media. Indeed, says Ed Reilly, who heads the American Management Association, all the e-mail, text messaging, and so on can lead people to end up “concentrating on the urgent rather than the important.”40 Written and oral communication ability is one of the most important career readiness competencies you can develop—it is essential not only for managers but in every single job. We’ll explore this and other important career readiness competencies in Section 1.7. 3. Managers Have to Be Purposeful and Proactive about Managing Their Time Managing means having a full plate at all times. It entails being responsible for multiple departments, locations, decisions, projects, and people; doing multiple Multitasking. Juggling multiple activities is common for managers— which is why so many managers use their smartphones to keep track of their schedules. Interestingly, although many of us multitask, research shows that very few people are good it. In general, multitasking reduces your productivity. Why do you think this happens? Olivier Lantzendörffer/ Getty Images