Exploring Management

Exploring Management supports teaching and learning of core management concepts by presenting material in a straightforward, conversational style with a strong emphasis on application. With a focus on currency, high-interest examples and pedagogy that encourages critical thinking and personal reflection, Exploring Management is the perfect balance between what students need and what instructors want. 

Table of Contents:
1 Managers and the Management Process 1 1.1 What Does It Mean To Be a Manager? 2 Organizations Have Different Types and Levels of Managers. 2 Accountability Is a Foundation of Managerial Performance. 4 Effective Managers Help Others Achieve High Performance and Satisfaction. 4 Managers Are Coaches, Coordinators, and Supporters. 4 1.2 What Do Managers Do, and What Skills Do They Use? 7 Managers Plan, Organize, Lead, and Control. 7 Managers Perform Informational, Interpersonal, and Decisional Roles. 9 Managers Use Networking and Social Capital to Pursue Action Agendas. 9 Managers Use Technical, Human, and Conceptual Skills. 10 Managers Should Learn from Experience. 12 1.3 What Are Some Important Career Issues? 14 Globalization and Job Migration Have Changed the World of Work. 14 Failures of Ethics and Corporate Governance are Troublesome. 15 Respecting Diversity and Eliminating Discrimination Are Top Social Priorities. 16 Talent Is a “Must Have” in a Free-Agent and On-Demand Economy. 16 Self-Management Skills are Essential for Career Success. 17 Personal Career Readiness Must Be Developed and Maintained. 17 2 Management Learning 22 2.1 What Are the Lessons of the Classical Management Approaches? 23 Taylor’s Scientific Management Sought Efficiency in Job Performance. 23 Weber’s Bureaucratic Organization Is Supposed to Be Efficient and Fair. 25 Fayol’s Administrative Principles Describe Managerial Duties and Practices. 26 2.2 What Are the Contributions of the Behavioral Management Approaches? 28 Follett Viewed Organizations As Communities of Cooperative Action. 28 The Hawthorne Studies Focused Attention on the Human Side of Organizations. 29 Maslow Described a Hierarchy of Human Needs with Self-Actualization at the Top. 30 McGregor Believed Managerial Assumptions Create Self-Fulfilling Prophecies. 31 Argyris Suggests That Workers Treated As Adults Will Be More Productive. 31 2.3 What Are the Foundations of Modern Management Thinking? 34 Managers Use Quantitative Analysis and Tools to Solve Complex Problems. 34 Organizations Are Open Systems That Interact with Their Environments. 35 Contingency Thinking Holds That There Is No One Best Way to Manage. 36 Quality Management Focuses Attention on Continuous Improvement. 37 Evidence-Based Management Seeks Hard Facts About What Really Works. 38 3 Ethics and Social Responsibility 42 3.1 How Do Ethics and Ethical Behavior Play Out in the Workplace? 43 Ethical Behavior Is Values Driven. 43 Views Differ on What Constitutes Moral Behavior. 44 What Is Considered Ethical Can Vary Across Cultures. 46 Ethical Dilemmas Are Tests of Personal Ethics and Values. 47 People Have a Tendency to Rationalize Unethical Behavior. 48 3.2 How Can We Maintain High Standards of Ethical Conduct? 50 Personal Character and Moral Development Influence Ethical Decision Making. 50 Managers as Positive Role Models Can Inspire Ethical Conduct. 51 Training in Ethical Decision Making Can Improve Ethical Conduct. 52 Protection of Whistleblowers Can Encourage Ethical Conduct. 52 Formal Codes of Ethics Set Standards for Ethical Conduct. 53 3.3 What Should We Know About the Social Responsibilities of Organizations? 55 Social Responsibility is an Organization’s Obligation to Best Serve Society. 55 Perspectives Diff er on the Importance of Corporate Social Responsibility. 56 Shared Value Integrates Corporate Social Responsibility into Mission and Strategy. 56 Social Businesses and Social Entrepreneurs are Driven by Social Responsibility. 57 Social Responsibility Audits Measure the Social Performance of Organizations. 57 Sustainability Is an Important Social Responsibility Goal. 58 4 Managers as Decision Makers 63 4.1 How Do Managers Use Information to Solve Problems? 64 Managers Use Technological, Informational, and Analytical Competencies to Solve Problems. 64 Managers Deal with Problems Posing Threats and Offering Opportunities. 65 Managers Can Be Problem Avoiders, Problem Solvers, or Problem Seekers. 65 Managers Make Programmed and Nonprogrammed Decisions. 66 Managers Use Both Systematic and Intuitive Thinking. 66 Managers Use Different Cognitive Styles to Process Information for Decision Making. 67 Managers Make Decisions under Conditions of Certainty, Risk, and Uncertainty. 67 4.2 What Are Five Steps in the Decision-Making Process? 70 Step 1—Identify and Define the Problem. 70 Step 2—Generate and Evaluate Alternative Courses of Action. 71 Step 3—Decide on a Preferred Course of Action. 71 Step 4—Take Action to Implement the Decision. 72 Step 5—Evaluate Results. 73 Ethical Reasoning Is Important at All Steps in Decision Making. 73 4.3 What Are Current Issues in Managerial Decision Making? 75 Creativity Drives Better Decision Making. 75 Group Decision Making Has Advantages and Disadvantages. 76 Judgmental Heuristics and Other Biases May Cause Decision-Making Errors. 76 Managers Must Prepare for Crisis Decision Making. 78 5 Plans and Planning Techniques 82 5.1 How and Why Do Managers Use the Planning Process? 83 Planning Is One of the Four Functions of Management. 83 Planning Sets Objectives and Identifies How to Achieve Them. 84 Planning Improves Focus and Flexibility. 84 Planning Improves Action Orientation. 85 Planning Improves Coordination and Control. 85 Planning Improves Time Management. 86 5.2 What Types of Plans Do Managers Use? 89 Managers Use Short-Range and Long-Range Plans. 89 Managers Use Strategic and Operational Plans. 89 Organizational Policies and Procedures Are Plans. 90 Budgets Are Plans That Commit Resources to Activities. 90 5.3 What Are Some Useful Planning Tools and Techniques? 93 Forecasting Tries to Predict the Future. 93 Contingency Planning Creates Backup Plans for When Things Go Wrong. 93 Scenario Planning Craft s Plans for Alternative Future Conditions. 94 Benchmarking Identifies Best Practices Used by Others. 94 Goal Setting Aligns Plans and Activities. 95 Goals Can Have Downsides and Must Be Well Managed. 96 Participatory Planning Builds Implementation Capacities. 97 6 Controls and Control Systems 101 6.1 How and Why Do Managers Use the Control Process? 102 Controlling is One of the Four Functions of Management. 102 Step 1—Control Begins with Objectives and Standards. 103 Step 2—Control Measures Actual Performance. 103 Step 3—Control Compares Results with Objectives and Standards. 104 Step 4—Control Takes Corrective Action as Needed. 104 6.2 What Types of Controls Are Used by Managers? 106 Managers Use Feedforward, Concurrent, and Feedback Controls. 106 Managers Use Both Internal and External Controls. 107 Managing by Objectives Helps Integrate Planning and Controlling. 108 6.3 What Are Some Useful Control Tools and Techniques? 111 Quality Control is a Foundation of Management. 111 Gantt Charts and CPM/PERT Improve Project Management and Control. 112 Inventory Controls Help Save Costs. 113 Breakeven Analysis Shows where Revenues will Equal Costs. 113 Financial Ratios Measure Key Areas of Financial Performance. 114 Balanced Scorecards Keep the Focus on Strategic Control. 115 7 Strategy and Strategic Management 119 7.1 What Types of Strategies Are Used by Organizations? 120 Strategy Is a Comprehensive Plan for Achieving Competitive Advantage. 120 Organizations Use Corporate, Business, and Functional Strategies. 121 Growth Strategies Focus on Expansion. 122 Restructuring and Divestiture Strategies Focus on Consolidation. 123 Global Strategies Focus on International Business Opportunities. 123 Cooperation Strategies Focus on Alliances and Partnerships. 123 E-Business Strategies Use the Web and Apps for Business Success. 124 7.2 How Do Managers Formulate and Implement Strategies? 127 The Strategic Management Process Formulates and Implements Strategies. 127 SWOT Analysis Identifies Strengths, Weaknesses, Opportunities, and Threats. 128 Porter’s Five Forces Model Analyzes Industry Attractiveness. 129 Porter’s Competitive Strategies Model Identifies Business or Product Strategies. 129 Portfolio Planning Examines Strategies Across Multiple Businesses or Products. 131 Strategic Leadership Ensures Strategy Implementation and Control. 131 8 Organization Structure and Design 136 8.1 What Is Organizing as a Managerial Responsibility? 137 Organizing Is One of the Management Functions. 137 Organization Charts Describe Formal Structures of Organizations. 138 Organizations Also Have Informal Structures. 138 Informal Structures Have Good Points and Bad Points. 139 8.2 What Are the Most Common Organization Structures? 141 Functional Structures Group Together People Using Similar Skills. 141 Divisional Structures Group Together People by Products, Customers, or Locations. 142 Matrix Structures Combine the Functional and Divisional Structures. 144 Team Structures Make Extensive Use of Permanent and Temporary Teams. 145 Network Structures Make Extensive Use of Strategic Alliances and Outsourcing. 145 8.3 What Are the Trends in Organizational Design? 149 Organizations Are Becoming Flatter and Using Fewer Levels of Management. 149 Organizations Are Increasing Decentralization. 149 Organizations Are Increasing Delegation and Empowerment. 150 Organizations Are Becoming More Horizontal and Adaptive. 151 Organizations Are Using More Alternative Work Schedules. 152 9 Organizational Cultures, Innovation, and Change 157 9.1 What Is the Nature of Organizational Culture? 158 Organizational Culture Is the Personality of the Organization. 158 Organizational Culture Shapes Behavior and Influences Performance. 159 Not All Organizational Cultures Are Alike. 159 The Observable Culture Is What You See and Hear As an Employee or Customer. 160 The Core Culture Is Found in the Underlying Values of the Organization. 161 Value-Based Management Supports a Strong Organizational Culture. 162 9.2 How Do Organizations Support and Achieve Innovation? 164 Organizations Pursue Process, Product, and Business Model Innovations. 164 Green Innovations Advance the Goals of Sustainability. 164 Social Innovations Seek Solutions to Important Societal Problems. 165 Commercializing Innovation Turns New Ideas into Salable Products. 165 Disruptive Innovation Uses New Technologies to Displace Existing Practices. 166 Innovative Organizations Share Many Common Characteristics. 166 9.3 How Do Managers Lead the Processes of Organizational Change? 168 Organizations and Teams Need Change Leaders. 168 Organizational Change Can Be Transformational or Incremental. 168 Three Phases of Planned Change Are Unfreezing, Changing, and Refreezing. 169 Times of Complexity Require Improvising in the Change Process. 170 Managers Use Force-Coercion, Rational Persuasion, and Shared Power Change Strategies. 171 Change Leaders Identify and Deal Positively with Resistance to Change. 172 10 Human Resource Management 177 10.1 What Are the Purpose and Legal Context of Human Resource Management? 178 Human Resource Management Attracts, Develops, and Maintains a Talented Workforce. 178 Strategic Human Resource Management Aligns Human Capital with Organizational Strategies. 179 Laws Protect Against Employment Discrimination. 179 Laws Can’t Guarantee That Employment Discrimination Will Never Happen. 180 10.2 What Are the Essentials of Human Resource Management? 183 Psychological Contracts Set the Exchange of Value Between Individuals and Organizations. 183 Recruitment Attracts Qualified Job Applicants. 184 Selection Makes Decisions to Hire Qualified Job Applicants. 185 Onboarding Introduces New Hires to the Organization. 186 Training Develops Employee Skills and Capabilities. 186 Performance Reviews Assess Work Accomplishments. 187 Career Development Provides for Retention and Career Paths. 188 10.3 What Are Current Issues in Human Resource Management? 190 Demands Are Increasing for Job Flexibility and Work–Life Balance. 190 More People Are Working as Independent Contractors and Contingency Workers. 190 Compensation Plans Influence Recruitment and Retention. 191 Fringe Benefits Are an Important Part of Compensation. 192 Labor Relations and Collective Bargaining Are Closely Governed by Law. 193 11 Leadership 198 11.1 What Are the Foundations of Effective Leadership? 199 Leadership is One of The Four Functions of Management. 199 Leaders Use Power to Achieve Influence. 200 Leaders Bring Vision to Teams and Organizations 201 Leaders Display Different Traits in the Quest for Effectiveness. 202 Leaders Display Different Styles in the Quest for Effectiveness. 202 11.2 What Can We Learn from the Contingency Leadership Theories? 205 Fiedler’s Contingency Model Matches Leadership Styles with Situational Differences. 205 The Hersey-Blanchard Situational Model Matches Leadership Styles with the Maturity of Followers. 206 House’s Path-Goal Theory Matches Leadership Styles with Task and Follower Characteristics. 207 Leader–Member Exchange Theory Describes How Leaders Treat In-Group and Out-Group Followers. 208 The Vroom-Jago Model Describes How Leaders Use Alternative Decision-Making Methods. 208 11.3 What Are Current Issues and Directions in Leadership Development? 211 Transformational Leadership Inspires Enthusiasm and Great Performance. 211 Emotionally Intelligent Leadership Handles Emotions and Relationships Well. 212 Interactive Leadership Emphasizes Communication, Listening, and Participation. 213 Moral Leadership Builds Trust Through Personal Integrity. 214 Servant Leadership Is Follower Centered and Empowering. 215 12 Individual Behavior 219 12.1 How Do Perceptions Influence Individual Behavior? 220 Perception Filters Information Received From Our Environment. 220 Perceptual Distortions Can Hide Individual Differences. 220 Perception Can Cause Attribution Errors. 221 Impression Management Influences How Others Perceive Us. 222 12.2 How Do Personalities Influence Individual Behavior? 225 The Big Five Personality Traits Describe Important Individual Differences. 225 The Myers-Briggs Type Indicator Is a Popular Approach to Personality Assessment. 226 Personalities Vary on Personal Conception Traits. 226 People with Type A Personalities Tend to Stress Themselves. 227 Stress Has Consequences for Performance and Health. 228 12.3 How Do Attitudes, Emotions, and Moods Influence Individual Behavior? 230 Attitudes Predispose People to Act in Certain Ways. 230 Job Satisfaction Is a Positive Attitude Toward One’s Job and Work Experiences. 231 Job Satisfaction Influences Work Behaviors. 231 Job Satisfaction Has a Complex Relationship with Job Performance. 232 Emotions and Moods Are States of Mind that Influence Behavior. 232 13 Motivation 237 13.1 How Do Human Needs Influence Motivation to Work? 238 Maslow Describes a Hierarchy of Needs Topped by Self-Actualization. 238 Alderfer’s ERG Theory Discusses Existence, Relatedness, and Growth Needs. 239 McClelland Identifies Acquired Needs for Achievement, Power, and Affiliation. 240 Herzberg’s Two-Factor Theory Focuses on Higher-Order Need Satisfaction. 241 The Core Characteristics Model Integrates Motivation and Job Design. 242 13.2 How Do Thoughts and Decisions Affect Motivation to Work? 245 Equity Theory Explains How Social Comparisons Motivate Individual Behavior. 245 Expectancy Theory Focuses on the Decision to Work Hard, or Not. 246 Goal-Setting Theory Shows that the Right Goals can be Motivating. 248 13.3 How Does Reinforcement Influence Motivation to Work? 251 Operant Conditioning Influences Behavior by Controlling its Consequences. 251 Operant Conditioning Uses Four Reinforcement Strategies 252 Positive Reinforcement Connects Desirable Behavior with Pleasant Consequences. 253 Punishment Connects Undesirable Behavior with Unpleasant Consequences. 254 14 Teams and Teamwork 258 14.1 Why Is It Important to Understand Teams and Teamwork? 259 Teams Offer Synergy and Other Benefits. 259 Teams Can Suffer from Performance Problems. 260 Organizations Are Networks of Formal Teams and Informal Groups. 260 Organizations Use Committees, Task Forces, and Cross-Functional Teams. 261 Virtual Teams Use Technology to Bridge Distances. 262 Self-Managing Teams Are a Form of Job Enrichment for Groups. 263 14.2 What Are the Building Blocks of Successful Teamwork? 265 Teams Need the Right Members to Be Effective. 266 Teams Need the Right Setting and Size to be Effective. 267 Teams Need the Right Processes to be Effective. 267 Teams Move Through Different Stages of Development. 268 Team Performance Is Influenced By Norms. 270 Team Performance is Influenced by Cohesiveness. 270 Team Performance is Influenced by Task and Maintenance Activities. 271 Team Performance is Influenced by Communication Networks. 272 14.3 How Can Managers Create and Lead High-Performance Teams? 275 Team Building Can Improve Teamwork and Performance. 275 Teams Benefit When They Use the Right Decision Methods. 275 Teams Suffer When Groupthink Leads to Bad Decisions. 276 Teams Benefit When Conflicts Are Well Managed. 277 15 Communication 282 15.1 What Is Communication, and When Is It Effective? 283 Communication Helps to Build Social Capital. 283 Communication Is a Process of Sending and Receiving Messages With Meanings Attached. 283 Communication Is Effective When the Receiver Understands the Sender’s Messages. 284 Communication Is Efficient When it Is Delivered at Low Cost to the Sender. 285 Communication Is Persuasive When the Receiver Acts as the Sender Intends. 285 15.2 What Are the Major Barriers to Effective Communication? 288 Poor Use of Channels Makes It Difficult to Communicate Effectively. 288 Poor Written or Oral Expression Makes It Difficult to Communicate Effectively. 289 Failure to Spot Nonverbal Signals Makes It Difficult to Communicate Effectively. 290 Information Filtering Makes It Difficult to Communicate Effectively. 290 Overloads and Distractions Make It Difficult to Communicate Effectively. 291 15.3 How Can We Improve Communication With People at Work? 293 Active Listening Helps Others to Say What They Really Mean. 293 Constructive Feedback Is Specific, Timely, and Relevant. 294 Office Designs Can Encourage Interaction and Communication. 295 Transparency and Openness Build Trust in Communication. 295 Appropriate Online Behavior Is a Communication Essential. 296 Sensitivity and Etiquette Improve Cross-Cultural Communication. 296 16 Diversity and Global Cultures 301 16.1 What Should We Know About Diversity in the Workplace? 302 Inclusion Drives the Business Case for Diversity. 302 Multicultural Organizations Value and Support Diversity. 303 Diversity Bias Exists in Many Situations. 303 Organizational Subcultures Create Diversity Challenges. 305 Managing Diversity Is a Leadership Priority. 306 16.2 What Should We Know About Diversity Among Global Cultures? 308 Culture Shock Is Discomfort in Cross-Cultural Situations. 308 Cultural Intelligence Is an Ability to Adapt to Different Cultures. 308 The “Silent” Languages of Cultures Include Context, Time, and Space. 309 Cultural Tightness and Looseness Varies Around the World. 311 Hofstede’s Model Identifies Value Differences Among National Cultures. 311 Intercultural Competencies Are Essential Career Skills. 313 17 Globalization and International Business 318 17.1 How Does Globalization Affect International Business? 319 Globalization Increases Interdependence of the World’s Economies. 320 Globalization Creates International Business Opportunities. 321 Global Sourcing Is a Common International Business Activity. 321 Export/Import, Licensing, and Franchising Are Market Entry Forms of International Business. 322 Joint Ventures and Wholly Owned Subsidiaries Are Direct Investment Forms of International Business. 323 International Business Is Complicated by Different Legal and Political Systems. 323 International Businesses Deal with Regional Economic Alliances. 324 17.2 What Are Global Corporations, and How Do They Work? 327 Global Corporations Have Extensive Operations in Many Countries. 327 The Actions of Global Corporations Can Be Controversial. 327 Managers of Global Corporations Face Ethics Challenges. 328 Planning and Controlling Are Complicated in Global Corporations. 330 Organizing Can Be Difficult in Global Corporations. 330 Leading Is Challenging in Global Corporations. 331 18 Entrepreneurship and Small Business 335 18.1 What Is Entrepreneurship, and Who Are Entrepreneurs? 336 Entrepreneurs Are Risk Takers Who Spot and Pursue Opportunities. 336 Entrepreneurs Often Share Similar Characteristics and Backgrounds. 338 Entrepreneurs Often Share Similar Personality Traits. 338 Women and Minority Entrepreneurs Are Growing in Numbers. 339 Social Entrepreneurs Seek Novel Solutions to Pressing Social Problems. 340 18.2 What Should We Know About Small Businesses and How To Start One? 343 Small Businesses Are Mainstays of the Economy. 343 Small Businesses Must Master Three Life-Cycle Stages. 343 Family-Owned Businesses Face Unique Challenges. 344 Many Small Businesses Fail Within 5 Years. 345 Assistance Is Available to Help Small Businesses to Get Started. 346 A Small Business Should Start With a Sound Business Plan. 346 There Are Different Forms of Small Business Ownership. 347 There Are Different Ways of Financing a Small Business. 348 Skill-Building Portfolio / Cases for Critical Thinking / Case References / Test Prep Answers / Glossary / Endnotes / Name Index /Organization Index / Subject Index