5th Edition. Fundamentals of Management. Ricky W. Griffin. Texas A & M
University. *% SOUTH-WESTERN. ®c? CENGAGE Learning-. Australia • Brazil •
Japan ...
5th
Edition
Fundamentals of Management Ricky W. Griffin Texas A & M University
*% SOUTH-WESTERN ®c? CENGAGE LearningAustralia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
Contents Preface
xv
PART
1
An Introduction to Management 1
Understanding the Manager's Job An Introduction to Management 3 Kinds of Managers 3 Basic Management Functions 5 Fundamental Management Skills 6 The Science and the Art of Management 8
Summary of Key Points 22 Discussion Questions 23 Building Effective Time-Management Skills 23 Building Effective Conceptual Skills 25 Building Effective Decision-Making Skills 25 Skills Self-Assessment Instrument 26 Experiential Exercise 27
The Evolution of Management 9 The Importance of History and Theory 9 The Historical Context of Management 10 The Classical Management Perspective 10 The Behavioral Management Perspective 13 The Quantitative Management Perspective 16 Contemporary Management Perspectives The Systems Perspective 17 The Contingency Perspective 19 Contemporary Management Challenges and Opportunities 19
2
CHAPTER CLOSING CASE: Home Depot's Failed Manager 28 YOU MAKE THE CALL: Marissa Mayer: Google's Top Designer 29 17
Test Prepper
30
Eye on Management: Managing for "Absolutely, Positively, Outrageous Customer Service" at Southwest Airlines 7
The Environments of Organizations and Managers The Organization's Environments The General Environment 33 The Task Environment 34 The Internal Environment 36
33
The Ethical and Social Environment of Management 38 The Individual Ethics in Organizations 38 Social Responsibility in Organizations 41 Managing Social Responsibility 43 The International Environment of Management 45 Trends in International Business 45 Levels of International Business Activity 46 The Context of International Business 47
31
The Organization's Culture 51 The Importance of Organization Culture 51 Determinants of Organization Culture 52 Managing Organization Culture 52 Summary of Key Points 53 Discussion Questions 54 Building Effective Diagnostic and Decision-Making Skills 54 Building Effective Interpersonal Skills 55 Building Effective Communication Skills 56 Skills Self-Assessment 57 Experiential Exercise 57
VII
VIII
CONTENTS CHAPTER CLOSING CASE: Coffee, Cafe, Kaffee, or Copi—Starbucks Spans the Globe 58 YOU MAKE THE CALL: Leading Lenovo: China's Foremost Global Capitalist 59
Test Prepper
60
Eye on Management: Global Competition at Subway 49
PART
Planning 3
Planning and Strategic Management Planning and Organizational Goals Organizational Goals 63 Kinds of Organizational Plans 65
63
The Nature of Strategic Management The Components of Strategy 66 Types of Strategic Alternatives 66
Using SWOT Analysis to Formulate Strategy Evaluating an Organization's Strengths 67 Evaluating an Organization's Weaknesses 68 Evaluating an Organization's Opportunities and Threats 68 Formulating Business-Level Strategies Porter's Generic Strategies 69 Strategies Based on the Product Life Cycle
67
Summary of Key Points 83 Discussion Questions 84 Building Effective Decision-Making Skills Building Effective Conceptual Skills 85 Building Effective Diagnostic Skills 87 Skills Self-Assessment Instrument 88 Experiential Exercise 88
80
84
CHAPTER CLOSING CASE: FEMA's Disastrous Response to Hurricane Katrina 91
Managing Decision Making The Nature of Decision Making Decision Making Defined 96 Types of Decisions 97 Decision-Making Conditions 98
94
96
Rational Perspectives on Decision Making The Classical Model of Decision Making 100 Steps in Rational Decision Making 100
Risk Propensity and Decision Making Ethics and Decision Making 108
99
Behavioral Aspects of Decision Making 105 The Administrative Model 106 Political Forces In Decision Making 107 Intuition and Escalation of Commitment 107
108
Group and Team Decision Making in Organizations 109 Forms of Group and Team Decision Making 109 Advantages of Group and Team Decision Making 110 Disadvantages of Group and Team Decision Making 111 Managing Group.and Team Decision-Making Processes 112
ix
CONTENTS
Summary of Key Points 112 Discussion Questions 113 Building Effective Conceptual Skills 113 Building Effective Decision-Making Skills 114 Building Effective Technical Skills 115 Skills Self-Assessment Instrument 115 Experiential Exercise 116
5
CHAPTER CLOSING CASE: The Decision-Making Mind of Microsoft 118 YOU MAKE THE CALL: Making Tough Choices at Wal-Mart 119 Test Prepper
120
Eye on Management: Team Decision Making at the Riverwood Clinic 110
Entrepreneurship and New Venture Management The Nature of Entrepreneurship 123 The Role of Entrepreneurship in Society Job Creation 125 Innovation 126 Importance to Big Business 127
121
Reasons for Success 123
Strategy for Entrepreneurial Organizations Choosing an Industry 127 Emphasizing Distinctive Competencies 132 Writing a Business Plan 133 Entrepreneurship and International Management Structure of Entrepreneurial Organizations Starting the New Business 136 Financing the New Business 137 Sources of Management Advice 139 Franchising 140 The Performance of Entrepreneurial Organizations 142 Trends in Small-Business Start-Ups 142 Reasons for Failure 145
127
134 135
146
Summary of Key Points 146 Discussion Questions 147 Building Effective Diagnostic Skills 148 Building Effective Interpersonal Skills 148 Building Effective Conceptual Skills 150 Skills Self-Assessment Instrument 150 Experiential Exercise 151 CHAPTER CLOSING CASE: Entrepreneurial Spirit Flies High at JetBlue 152 YOU MAKE THE CALL: Founding Facebook Test Prepper
153
154
Meeting of the Minds: Parts One and Two: Managing in the Soft-Drink Industry 155 Eye on Management: Sandwich Chef: A Start Up 134
PART
Organizing 6
Organization Structure and Design The Basic Elements of Organizing 159 Job Specialization 159 Alternatives to Specialization 160 Grouping Jobs: Departmentalization 162 Establishing Reporting Relationships 164 Distributing Authority 165 Coordinating Activities 166 The Bureaucratic Model of Organization Design 169 Situational Influences on Organization Design 170
157 Core Technology 170 Environment 171 Organizational Size and Life Cycle
172
Basic Forms of Organization Design Functional (U-Form) Design 173 Conglomerate (H-Form) Design 174 Divisional (M-Form) Design 174 Matrix Design 175 Hybrid Designs 177 Emerging Issues in Organization Design The Team Organization 178
173
177
CONTENTS
7
The Virtual Organization 178 The Learning Organization 179
Summary of Key Points 180 Discussion Questions 180 Building .Effective Conceptual Skills 181 Building Effective Technical Skills 181 Building Effective Decision-Making Skills 182 Skills Self-Assessment Instrument 183
YOU MAKE THE CALL: Did You Hear the One A b o u t . . . Delegation? 186 Test Prepper
Eye on Management: Managing Reporting Relationships in Teams 167
Organization Change and Innovation The Nature of Organization Change Forces for Change 190 Planned Versus Reactive Change 192
190
Managing Change in Organizations 193 Steps in the Change Process 193 Understanding Resistance to Change 195 Overcoming Resistance to Change 196 Areas of Organization Change 197 Changing Organization Structure and Design 197 Changing Technology and Operations 197 Changing People, Attitudes, and Behaviors 199 Changing Business Processes 199 Organization Development 201
188 The Failure to Innovate 206 Promoting Innovation in Organizations
Organizational Innovation The Innovation Process 203 Forms of Innovation 205
203
207
Summary of Key Points 209 Discussion Questions 209 Building Effective Time-Management Skills Building Effective Diagnostic Skills 211 Building Effective Technical Skills 212 Skills Self-Assessment Instrument 215 Experiential Exercise 216
210
CHAPTER CLOSING CASE: Whole Foods Changes the Grocery Industry 217 YOU MAKE THE CALL: Innovative Ikea Test Prepper
8
187
218
219
Managing in Times of Change: Out With the Old, In
With the New 205
Managing Human Resources in Organizations
220
The Environmental Context of Human Resource Management 222 • The Strategic Importance of HRM 222 The Legal Environment of HRM 223
Managing Workforce Diversity The Meaning of Diversity 237 The Impact of Diversity 238 Managing Diversity in Organizations
Attracting Human Resources 226 Human Resource Planning 226 Recruiting Human Resources 228 Selecting Human Resources 229
Managing Labor Relations How Employees Form Unions Collective Bargaining 241
Developing Human Resources Training and Development 231 Performance Appraisal 232 Performance Feedback 234 Maintaining Human Resources Determining Compensation 235 Determining Benefits 237
231
235
237
238
240 240
New Challenges in the Changing Workplace Managing Knowledge Workers 243 Contingent and Temporary Workers 243 Summary of Key Points 245 Discussion Questions 246 Building Effective Decision-Making Skills 246 Building Effective Communication Skills 247 Building Effective Technical Skills 248
Meeting of the Minds: Part Three: Managing in the Soft-Drink Industry 254
CHAPTER CLOSING CASE: REI: A Place for Serious Fun 251
Eye on Management: Equality
239
YOU MAKE THE CALL: Results-Only Work Environment at Best Buy 252
PART
4
Leading 9
Basic Elements of Individual Behavior in Organizations Understanding Individuals in Organizations The Psychological Contract 260 The Person-Job Fit 261 The Nature of Individual Differences 262 Personality and Individual Behavior The "Big Five" Personality Traits 263 The Myers-Briggs Framework 264 Other Personality Traits at Work 265 Emotional Intelligence 267
263
Attitudes and Individual Behavior 268 Work-Related Attitudes 268 Affect and Mood in Organizations 269 Perception and Individual Behavior Basic Perceptual Processes 270 Perception and Attribution 271
Summary of Key Points 282 Discussion Questions 283 Building Effective Diagnostic Skills 283 Building Effective Conceptual Skills 284 Building Effective Time-Management Skills Skills Self-Assessment Instrument 285 Experiential Exercise 286
284
CHAPTER CLOSING CASE: Steve Jobs: "The Leading-Edge Guy in the World" 287 YOU MAKE THE CALL: W. L. Gore Nurtures Talent and Creativity 288
Stress and Individual Behavior 272 Causes and Consequences of Stress 273 Managing Stress 275
Test Prepper
289
Managing in Times of Change: Managing the Flood of Ideas 278
Creativity in Organizations 276 The Creative Individual 276 The Creative Process 277 Enhancing Creativity in Organizations 279
10 Managing Employee Motivation and Performance The Nature of Motivation 292 Content Perspectives on Motivation The Needs Hierarchy Approach 293 The Two-Factor Theory 295 Individual Human Needs 296 Process Perspectives on Motivation Expectancy Theory 297 Equity Theory 300
Goal-Setting Theory 293
296
290 300
Reinforcement Perspectives on Motivation Kinds of Reinforcement in Organizations 302 Providing Reinforcement in Organizations 303 Popular Motivational Strategies 303 Empowerment and Participation 304 Alternative Forms of Work Arrangements 304
302
XII
CONTENTS Using Reward Systems to Motivate Performance 306 Merit Reward Systems 306 Incentive Reward Systems 306 Team and Group Incentive Reward Systems 308 Executive Compensation 310 New Approaches to Performance-Based Rewards 312
Building Effective Decision-Making Skills 314 Building Effective Conceptual and Diagnostic Skills 315 Skills Self-Assessment Instrument 316 Experiential Exercise 316
Summary of Key Points 312 Discussion Questions 313 Building Effective Interpersonal and Communication Skills 314
YOU MAKE THE CALL: Motivation Without Borders 320
CHAPTER CLOSING CASE: You've Got to Love This Job 319
Test Prepper
321
322
1 1 Leadership and Influence Processes Political Behavior in Organizations Common Political Behaviors 343 Impression Management 343 Managing Political Behavior 344
The Nature of Leadership 324 The Meaning of Leadership 324 Leadership and Management 324 Leadership and Power 325 Generic Approaches to Leadership Leadership Traits 328 Leadership Behaviors 329
328
Situational Approaches to Leadership 331 LPC Theory 331 Path-Goal Theory 334 Vroom's Decision Tree Approach 335 The Leader-Member Exchange Approach 338 Related Approaches to Leadership Substitutes for Leadership 339 Charismatic Leadership 339 Transformational Leadership 340
Summary of Key Points 345 Discussion Questions 346 Building Effective Diagnostic Skills 346 Building Effective Decision-Making Skills 347 Building Effective Conceptual Skills 348 Skills Self-Assessment Instrument 348 Experiential Exercise 349 CHAPTER CLOSING CASE: Stan O'Neal Leads Merrill Lynch 351 YOU MAKE THE CALL: Watch Out Bud, Miller Is Catching Up 352 Test Prepper
341
353
Managing in Times of Change: Measuring Excellent Leadership 326
12 Communication in Organizations Communication and the Manager's Job A Definition of Communication 356 Characteristics of Useful Information 357 The Communication Process 358
356
Forms of Communication in Organizations 359 Interpersonal Communication 359 Communication in Networks and Work Teams 361 Organizational Communication 362
354 Electronic Communication Information Systems 363 Personal Electronic Technology
363 366
Informal Communication in Organizations The Grapevine 368 Management by Wandering Around 369 Nonverbal Communication 369
367
xiii
CONTENTS Managing Organizational Communication Barriers to Communication 371 Improving Communication Effectiveness 373
370
Summary of Key Points 375 Discussion Questions 376 Building Effective Technical Skills 377 Building Effective Communication Skills 377 Skills Self-Assessment Instrument 378 Experiential Exercise 379
CHAPTER CLOSING CASE: Communicating the Truth About Smoking 380 YOU MAKE THE CALL: Talking With Sports Fans 381 Test Prepper
382
Managing in Times of Change: Communicating via Craigslist 367
13 Managing Work Groups and Teams Groups and Teams in Organizations 385 Types of Groups and Teams 385 Why People Join Groups and Teams 388 Stages of Group and Team Development 389 Characteristics of Groups and Teams Role Structures 391 Behavioral Norms 393 Cohesiveness 395 Formal and Informal Leadership 397 Interpersonal and Intergroup Conflict The Nature of Conflict 398 Causes of Conflict 399 Managing Conflict in Organizations Stimulating Conflict 401 J Controlling Conflict 402 Resolving and Eliminating Conflict 403
391
383 Summary of Key Points 404 Discussion Questions 404 Building Effective Decision-Making Skills 405 Building Effective Conceptual Skills 407 Building Effective Communication Skills 408 Skills Self-Assessment Instrument 408 Experiential Exercise 409 CHAPTER CLOSING CASE: Who Can Head Team Nike? 410
398
YOU MAKE THE CALL: Teamwork for the Tampa Bay Devil Rays 411 Test Prepper 412
401
Meeting of the Minds: Part Four: Managing in the Soft-Drink Industry 413 Managing in Times of Change: Don't Let a Dream Team Become a Nightmare 393
PART
Controlling 14 Basic Elements of Control The Nature of Control 417 The Purpose of Control 417 Types of Control 419 Steps in the Control Process 421
Structural Control 430 Bureaucratic Control 431 Decentralized Control 431 Strategic Control 432 Integrating Strategy and Control 432 International Strategic Control 433
Operations Control 423 Preliminary Control 424 Screening Control 424 Postaction Control 424 Financial Control 425 Budgetary Control 425 Other Tools for Financial Control
415
Managing Control in Organizations Characteristics of Effective Control 434 Resistance to Control 435 Overcoming Resistance to Control 437 428
434
XIV
CONTENTS Summary of Key Points 438 Discussion Questions 439 Building Effective Time-Management Skills 439 Building Effective Decision-Making and Diagnostic Skills 440 Building Effective Technical Skills 441 Skills Self-Assessment Instrument 441 Experiential Exercise 442
CHAPTER CLOSING CASE: Is Too Much Control Hurting Dell? 444 YOU MAKE THE CALL: Effective Controls at McDonald's Boost Performance 445 Test Prepper
446
Managing in Times of Change: Bringing Accountability to Toys "R" Us 432
447
15 Managing Operations, Quality, and Productivity The Nature of Operations Management 449 The Importance of Operations 449 Manufacturing and Production Operations 450 Service Operations 450 The Role of Operations in Organizational Strategy 451
Managing Productivity 467 The Meaning of Productivity 467 The Importance of Productivity 468 Productivity Trends 468 Improving Productivity 469
Summary of Key Points 470 Discussion Questions 471 Building Effective Communication Skills 472 Building Effective Diagnostic Skills 472 Building Effective Conceptual Skills 473 Skills Self-Assessment Instrument 473 Experiential Exercise 474
Organizational Technologies Manufacturing Technology 454 Service Technology 457
454
Implementing Operations Systems Through Supply Chain Management 457 Operations Management as Control 458 Purchasing Management 458 Inventory Management 459 Managing Total Quality 460 The Meaning of Quality 460 The Importance of Quality 461 Total Quality Management 462 TQM Tools and Techniques 463
CHAPTER CLOSING CASE: E-Tailing at Amazon.Com 475 YOU MAKE THE CALL: Competing Through Operations 476 Test Prepper
477
Meeting of the Minds: Part Five: Managing in the Soft-Drink Industry 478 Eye on Management: Outsourcing
465
Appendix Interpretations of Skills Self-Assessment Instruments Answers to Test Preppers 492 Chapter Notes 493 Name Index 511 Organization and Product Index 514 Subject Index 519 Photo Credits 529
