MANAGEMENT 15E - Pearson

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MANAGEMENT 15EStephen P. RobbinsSan Diego State UniversityMary CoulterMissouri State UniversityWith contributions byAmy RandelSan Diego State UniversityA01 ROBB1858 15 SE FM.indd 111/18/19 7:48 AM

Please contact pport with any queries on this content.Copyright 2021, 2018, 2016 by Pearson Education, Inc. or its affiliates, 221 River Street, Hoboken, NJ 07030.All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, andpermission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, ortransmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For informationregarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights andPermissions department, please visit www.pearsoned.com/permissions/.Acknowledgments of third-party content appear on the appropriate page within the text.PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or itsaffiliates in the U.S. and/or other countries.Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are theproperty of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress arefor demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement,authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the ownerand Pearson Education, Inc., or its affiliates, authors, licensees, or distributors.Library of Congress Cataloging-in-Publication DataNames: Robbins, Stephen P., author. Coulter, Mary K., author.Title: Management / Stephen P. Robbins, Mary Coulter.Description: 15 Edition. Hoboken, NJ : Pearson, [2020] Revised editionof the authors’ Management, [2018]Identifiers: LCCN 2019020717 (print) LCCN 2019980991 (ebook) ISBN 9780135581858 ISBN 9780135581872 (ebook other)Subjects: LCSH: Management.Classification: LCC HD31 .R5647 2020 (print) LCC HD31 (ebook) DDC 658—dc23LC record available at https://lccn.loc.gov/2019020717LC ebook record available at CodeISBN 10:    0-13-558185-0ISBN 13: 978-0-13-558185-8A01 ROBB1858 15 SE FM.indd 211/18/19 7:48 AM

To my wife, LauraSteveTo my husband, RonMaryA01 ROBB1858 15 SE FM.indd 311/18/19 7:48 AM

A01 ROBB1858 15 SE FM.indd 411/18/19 7:48 AM

Brief ContentsPrefacexxiiiAcknowledgmentsxxxiPart 1 Introduction to ManagementChapter 1: Managers and You in the WorkplaceManagement History Module22Chapter 2: Making Decisions3622Part 1 Management Practice 58Part 2 Basics of Managing in Today’s Workplace 62Chapter 3: Influence of the External Environment and the Organization’s CultureChapter 4: Managing in a Global EnvironmentChapter 5: Managing Diversity6284108Chapter 6: Managing Social Responsibility and EthicsChapter 7: Managing Change and Disruptive Innovation136162Part 2 Management Practice 194Part 3 Planning 200Chapter 8: Foundations of PlanningChapter 9: Managing Strategy200220Chapter 10: Entrepreneurial Ventures 244Part 3 Management Practice 270Part 4 Organizing 274Chapter 11: Designing Organizational Structure 274Chapter 12: Managing Human Resources300Chapter 13: Managing Groups and Teams332Part 4 Management Practice 356Part 5 Leading 360Chapter 14: Managing Communication360Chapter 15: Understanding and Managing Individual BehaviorChapter 16: Motivating Employees382416Chapter 17: Being an Effective Leader 448Part 5 Management Practice 480Part 6 Controlling484Chapter 18: Monitoring and Controlling484Planning and Control Techniques ModuleManaging Operations Module514530Part 6 Management Practice 542Glossary 546 Name Index 557 Organization Index 571 Subject Index 575A01 ROBB1858 15 SE FM.indd 5v11/18/19 7:48 AM

ContentsPreface xxiiiAcknowledgments xxxiPart 1 Introduction to Management2Chapter 1: Managers and You in the Workplace2Tell Who Managers Are and Where They Work 2Who Is a Manager?2Where Do Managers Work?3Why Are Managers Important?4Management Versus Managers5What Is Management? 5What Do Managers Do?6Managerial Challenges Today and Into the Future8Focus on Technology 8Focus on Disruptive InnovationFocus on Social MediaFocus on Ethics9911Focus on Political UncertaintyFocus on the Customer1111Why Study Management? 12The Universality of ManagementThe Reality of Work1212Rewards from Being a Manager 13Gaining Insights into Life at Work13Employability Skills 13Boxed FeaturesFYI 4, 11It’s Your Career: The ABC’s of Managing Your Time 9Learning from Failure: Successful Managers Learn from Their FailuresWorkplace Confidential: Dealing with Organizational Politics 14Preparing For: Exams/Quizzes16Chapter Summary by Learning ObjectivesReview and Discussion QuestionsPreparing For: My CareerEthics Dilemma1016171717Skill Exercise: Developing Your Skills as a Manager 18Working Together: Team Exercise 18My Turn to Be a Manager18viA01 ROBB1858 15 SE FM.indd 611/18/19 7:48 AM

ContentsCase Application 1: Working with Artificial Intelligence19Case Application 2: Nike: Taking a Customer Focus to a New LevelManagement History ModuleEarly Managementvii202222Classical Approach 23Scientific Management23General Administrative Theory25Behavioral Approach 27Quantitative Approach 29Contemporary Approaches30Preparing For: Exams/Quizzes33Chapter Summary by Learning Objectives 33Review and Discussion Questions34Preparing For: My Career 34My Turn to Be a Manager34Chapter 2: Making DecisionsThe Decision-Making ProcessStep 1: Identify a Problem363737Step 2: Identify Decision Criteria38Step 3: Allocate Weights to the Criteria 38Step 4: Develop Alternatives39Step 5: Analyze Alternatives39Step 6: Select an Alternative40Step 7: Implement the Alternative40Step 8: Evaluate Decision EffectivenessApproaches to Decision MakingRationality4041Bounded RationalityIntuition404142Evidence-Based ManagementCrowdsourcingTypes of Decisions424344Structured Problems and Programmed Decisions44Unstructured Problems and Nonprogrammed DecisionsComparing Decision TypesDecision-Making Styles444545Decision-Making Biases and Errors 47Cutting-Edge Approaches for Improving Decision Making 48Design Thinking48Big Data and Artificial Intelligence50Boxed FeaturesFYI 37, 43, 48, 51Let’s Get REAL 43Learning from Failure: James Dyson: A Man of a Thousand FailuresWorkplace Confidential: Making Good Decisions 49A01 ROBB1858 15 SE FM.indd 74611/18/19 7:48 AM

viii ContentsPreparing For: Exams/Quizzes51Chapter Summary by Learning Objectives 51Review and Discussion QuestionsPreparing For: My CareerEthics Dilemma525353Skills Exercise: Developing Your Creativity Skill 53Working Together: Team Exercise 54My Turn to Be a Manager54Case Application 1: Making Decisions with Bad Data 54Case Application 2: Bringing Sports Analytics into the Thick of Things55Part 1: Management Practice 58A Manager’s DilemmaGlobal Sense5858Continuing Case: Starbucks—Introduction58Part 2 Basics of Managing in Today’s Workplace62Chapter 3: Influence of the External Environmentand the Organization’s Culture 62The Manager: Omnipotent or Symbolic?The Omnipotent ViewThe Symbolic View636363Reality Suggests a Synthesis 64The External Environment: Constraints and Challenges64Defining the Environment and Environmental UncertaintyMonitoring the General EnvironmentThe Specific Environment6667Managing the Environment69Organizational Culture: Constraints and ChallengesWhat Is Organizational Culture?Strong Cultures64697071Where Culture Comes From and How It ContinuesHow Employees Learn Culture73How Culture Affects Managers7772Boxed FeaturesLet’s Get REAL 66, 73FYI 67, 70Learning from Failure: A Corrupt Culture at Wells Fargo 74It’s Your Career: Reading an Organization’s Culture: Find One That Is a Right Fit for YouWorkplace Confidential: Adjusting to a New Job or Work Team 76Preparing For: Exams/Quizzes7578Chapter Summary by Learning Objectives 78Review and Discussion QuestionsPreparing For: My CareerEthics Dilemma797979Skill Exercise: Developing Your Environmental Scanning SkillA01 ROBB1858 15 SE FM.indd 87911/18/19 7:48 AM

ContentsixWorking Together: Team Exercise 80My Turn to Be a Manager80Case Application 1: Environmental Uncertainty at HBO 80Case Application 2: Organizational Culture at Vice Media 81Chapter 4: Managing in a Global Environment84Clarifying Terminology 85A Brief History of Globalization86The Case For and Against GlobalizationThe Win-Win ArgumentThe Downside of GlobalizationGlobalization Today90909091What Does This Mean for Managers?91Different Types of International OrganizationsHow Organizations Go International93Managing in a Global EnvironmentThe Political/Legal EnvironmentThe Economic EnvironmentThe Cultural Environment9294949596Boxed FeaturesFYI 88, 90, 96Let’s Get REAL 95It’s Your Career: Developing Your Global Perspective—Working with People from Other CulturesLearning from Failure: Disney Learns That France Isn’t Florida 100Preparing For: Exams/Quizzes96100Chapter Summary by Learning Objectives 100Review and Discussion Questions102Preparing For: My Career 102Ethics Dilemma102Skills Exercise: Developing Your Collaboration SkillWorking Together: Team ExerciseMy Turn to Be a Manager103103103Case Application 1: Glencore: Conducting Business in Countries Where Others Might Not 104Case Application 2: Tariffs: Helping or Hurting General Motors? 105Chapter 5: Managing Diversity108Diversity 101 109What Is Workplace Diversity?109Benefits of Workforce Diversity 110The Changing Workplace112Characteristics of the US Population112What About Global Workforce Changes? 115Types of Workplace DiversityAge115Gender116Race and EthnicityA01 ROBB1858 15 SE FM.indd 911511711/18/19 7:48 AM

xContentsDisabilitiesReligion118119LGBT: Sexual Orientation and Gender IdentityChallenges in Managing DiversityPersonal Bias120Glass Ceiling122Pay Inequities120122Workplace Diversity Initiatives123Top Management Commitment to DiversityMentoring120123124Diversity Training 125Employee Resource Groups125Some Final Thoughts and Questions126Boxed FeaturesFYI 111, 121, 122, 124Let’s Get REAL 112, 118Workplace Confidential: Dealing with Diversity 113Learning from Failure: Denny’s Answer to Its Diversity ProblemPreparing For: Exams/Quizzes124126Chapter Summary by Learning Objectives 126Review and Discussion QuestionsPreparing For: My CareerEthics Dilemma127128128Skills Exercise: Developing Your Valuing Diversity Skill 128Working Together: Team Exercise 129My Turn to Be a Manager129Case Application 1: Gusto: Making a Difference in Gender DiversityCase Application 2: Bring in Diversity . . . and Then What?129130Chapter 6: Managing Social Responsibilityand Ethics 136What is Social Responsibility?Two Opposing Views137137From Obligations to Responsiveness to ResponsibilitySocial Responsibility and Economic PerformanceGreen Management and Sustainability139139140How Organizations Go Green 140Evaluating Green Management ActionsManagers and Ethical Behavior141142Factors That Determine Ethical and Unethical Behavior143Ethics in an International Context 146Encouraging Ethical Behavior 148Employee SelectionCodes of Ethics148149Leadership at the Top149Job Goals and Performance AppraisalEthics Training150Independent Social AuditsA01 ROBB1858 15 SE FM.indd 1015015111/18/19 7:48 AM

ContentsCurrent Issues in Social Responsibility and EthicsProtecting Whistle-Blowers151151Promoting Social Entrepreneurship151Social Media and Social ResponsibilityCorporate Philanthropyxi152152Boxed FeaturesFYI 140, 141, 144, 145, 151Let’s Get REAL 142, 148Learning from Failure: Siemens Atones for Its Sins 147Workplace Confidential: Balancing Work and Personal LifePreparing For: Exams/Quizzes153154Chapter Summary by Learning Objectives 154Review and Discussion Questions155Preparing For: My Career 156Ethics Dilemma156Skills Exercise: Developing Your Trust Building Skill 156Working Together: Team ExerciseMy Turn to Be a Manager157157Case Application 1: Chobani: A Different Kind of Yogurt Company 157Case Application 2: Every Kid Fed: Addressing Childhood Hunger Through Social EntrepreneurshipChapter 7: Managing Change and Disruptive InnovationThe Case for ChangeLiving with VUCA163164Internal Forces for Change165The Change Process165The Calm Waters Metaphor166The White-Water Rapids ple162163External Forces for ChangeAreas of Change158169169Managing Change170Why Do People Resist Change?170Techniques for Reducing Resistance to Change170Contemporary Issues in Managing Change 172Changing an Organization’s CultureEmployee Stress172173Stimulating Innovation177Creativity Versus Innovation177Stimulating and Nurturing Innovation177Disruptive Innovation 180Definition180Why Disruptive Innovation Is ImportantWho’s Vulnerable?ImplicationsA01 ROBB1858 15 SE FM.indd 1118018118211/18/19 7:48 AM

xiiContentsBoxed FeaturesFYI 164, 170, 174, 181Let’s Get REAL 171, 179Workplace Confidential: Coping with Job StressPreparing For: Exams/Quizzes176184Chapter Summary by Learning Objectives 184Review and Discussion QuestionsPreparing For: My CareerEthics Dilemma185185185Skills Exercise: Developing Your Change-Management Skill186Working Together: Team Exercise 187My Turn to Be a Manager187Case Application 1: Change from Within at Google187Case Application 2: Creating an Innovation Lab at Neiman Marcus188Part 2: Management Practice 194A Manager’s DilemmaGlobal Sense194194Continuing Case Starbucks—Basics of Managing In Today’s WorkplacePart 3 Planning194200Chapter 8: Foundations of PlanningThe What and Why of PlanningWhat Is Planning?200201201Why Do Managers Plan?201Planning and Performance 202Types of Plans203Strategic Versus Operational Plans203Short-Term Versus Long-Term Plans 203Specific Versus Directional Plans204Single-Use Versus Standing Plans204Contingency Factors in Planning 205Level in the Organization205Degree of Environmental Uncertainty205Length of Future Commitments 205Objectives: The Foundation of PlanningStated Versus Real ObjectivesTraditional Objective SettingManagement by Objectives206206207208Contemporary Issues in Planning211Environmental Scanning 211Virtual Reality212Boxed FeaturesLet’s Get REAL 202FYI 204, 209, 211A01 ROBB1858 15 SE FM.indd 1211/18/19 7:48 AM

ContentsLearning from Failure: US Army Corps of Engineers and Hurricane KatrinaWorkplace Confidential: When You Face a Lack of Clear Directions 210Preparing For: Exams/Quizzesxiii206212Chapter Summary by Learning Objectives 212Review and Discussion Questions213Preparing For: My Career 214Ethics Dilemma214Skills Exercise: Making a To-Do List That Works and Using It214Working Together: Team Exercise 215My Turn to Be a Manager215Case Application 1: Capturing Anti-Trends at New Balance 215Case Application 2: Living Up to Goals at Tesla216Chapter 9: Managing Strategy220What Is Strategic Management and Why Is It Important?Defining Strategic Management221221Why Is Strategic Management Important?The Strategic Management Process222222Step 1: Identifying the Organization’s Current Mission, Goals, and StrategiesStep 2: Doing an External Analysis224Step 3: Doing an Internal Analysis224Step 4: Formulating Strategies225Step 5: Implementing StrategiesStep 6: Evaluating ResultsCorporate Strategies223225225226What Is Corporate Strategy?228What Are the Types of Corporate Strategy? 228How Are Corporate Strategies Managed?Competitive Strategies229230The Role of Competitive AdvantageSustaining Competitive Advantage230231Examples of Differentiation Strategies232Boxed FeaturesFYI 223, 233, 235Let’s Get REAL 225It’s Your Career: Learning Your Strengths and Weaknesses 226Workplace Confidential: Developing a Career Strategy 227Learning from Failure: Coke Panics After the Pepsi Challenge 230Preparing For: Exams/Quizzes235Chapter Summary by Learning Objectives 235Review and Discussion Questions236Preparing For: My Career 237Ethics Dilemma237Skills Exercise: Developing Your Business Planning Skill 237Working Together: Team ExerciseMy Turn to Be a Manager238238Case Application 1: Turnaround at Chipotle 239Case Application 2: Saving Lives Through Strategy at RapidSOS 239A01 ROBB1858 15 SE FM.indd 1311/18/19 7:48 AM

xiv ContentsChapter 10: Entrepreneurial VenturesThe Context of EntrepreneurshipWhat Is Entrepreneurship?244245245Why Is Entrepreneurship Important?The Entrepreneurial Process246What Do Entrepreneurs Do?246245A Hybrid Path to Entrepreneurship 247Start-Up and Planning Issues247Identifying Environmental Opportunities and Competitive AdvantageResearching the Venture’s Feasibility—IdeasResearching the Venture’s Feasibility—CompetitorsResearching the Venture’s Feasibility—FinancingDeveloping a Business Plan249250252253253Organizing Issues 254Legal Forms of Organization255Organizational Design and StructureHuman Resource Management257258Leading Issues 258Personality Characteristics of Entrepreneurs259The Entrepreneur as Leader 259Control Issues 261Potential Control Problems and ActionsExiting the Venture261261Boxed FeaturesWorkplace Confidential: Dealing with Risks 248FYI 249, 252, 253Let’s Get REAL 251, 254Learning from Failure: The Third Time Is a Charm for Vera WangPreparing For: Exams/Quizzes260262Chapter Summary by Learning Objectives 262Review and Discussion QuestionsPreparing For: My CareerEthics Dilemma263263263Skills Exercise: Developing Grit 263Working Together: Team Exercise 264My Turn to Be a Manager264Case Application 1: Becoming an Entrepreneur While In College with Brainz Power 265Case Application 2: Qordoba: How Sweet It Is to Find a Solution to a Problem 266Part 3: Management Practice 270A Manager’s DilemmaGlobal Sense270270Continuing Case Starbucks—PlanningA01 ROBB1858 15 SE FM.indd 1427111/18/19 7:48 AM

ContentsPart 4 Organizing274Chapter 11: Designing Organizational StructureSix Elements of Organizational DesignWork Specialization275Departmentalization277Chain of CommandSpan of Control274275277279Centralization and DecentralizationFormalizationxv281282Mechanistic and Organic Structures 283Contingency Factors Affecting Structural ChoiceStrategy and Structure283284Size and Structure 284Technology and Structure 284Environmental Uncertainty and Structure 284Traditional Organizational Design OptionsSimple Structure285285Functional Structure 286Divisional Structure286Organizing for Flexibility in the Twenty-First CenturyTeam StructuresMatrix and Project StructuresThe Virtual OrganizationTelecommuting287287288Compressed Work WeeksFlextime286287289290Job Sharing290The Contingent Workforce 291Boxed FeaturesLet’s Get REAL 279, 289Workplace Confidential: Coping with Multiple Bosses 280FYI 281, 288, 288, 291Learning from Failure: Working at Home Doesn’t Work at IBMPreparing For: Exams/Quizzes290292Chapter Summary by Learning Objectives 292Review and Discussion Questions293Preparing For: My Career 293Ethics Dilemma293Skills Exercise: Developing Your Acquiring Power SkillWorking Together: Team ExerciseMy Turn to Be a Manager293294294Case Application 1: Making a Flat Organization Work at Punchkick 295Case Application 2: The Invisible Workforce at GoogleA01 ROBB1858 15 SE FM.indd 1529611/18/19 7:48 AM

xvi ContentsChapter 12: Managing Human Resources 300Why Human Resource Management Is ImportantThe Human Resource Management Process301302External Factors That Affect the Human Resource Management Process 302The Economy302Labor Unions303Laws and RulingsDemography303305Identifying and Selecting Competent EmployeesHuman Resource PlanningRecruitment and DecruitmentSelection306306307309Providing Employees With Needed Skills and KnowledgeOrientation and SocializationEmployee Training314Retaining Competent, High-Performing EmployeesPerformance Evaluation315315Compensation and BenefitsCareer Development312312317320Contemporary Issues in Managin

Employee Resource Groups 125 Some Final Thoughts and Questions 126 Boxed Features FYI 111, 121, 122, 124 . Chapter 6: Managing Social Responsibility and Ethics 136 . Employee Selection 148 Codes of Ethics 149 Leadership at the Top 149

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