CONTENTS Part One Introduction to <B><FONT color ... #0000 Chapter One <B><FONT color ... #0000 What Is <B><FONT color ... #0000 <B><FONT color ... #0000 <B><FONT color ... #0000 Making Things Happen ... 9 Meeting the competition ... 9 Organizing People, Projects, and Processes ... 10 Leading ... 10 What Do Managers Do? ... 11 Kinds of Managers ... 11 Top Managers ... 12 Middle Managers ... 13 First-Line Managers ... 14 Team Leaders ... 15 Managerial Roles ... 16 Interpersonal Roles ... 18 Informational Roles ... 18 Decisional Roles ... 19 What Does it Take to Be a Manager? ... 22 What Companies Look for in Managers ... 23 Mistakes Managers Make ... 25 The Transition to <B><FONT color ... #0000 Why <B><FONT color ... #0000 Competitive Advantage through People ... 32 What Really Happened? ... 35 Key Terms ... 36 What Would You Do-ⅱ? ... 36 Critical-Thinking Video Case ... 37 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Two Organizational Environments and Cultures ... 40 External Environments ... 42 Changing Environments ... 43 Environmental Change ... 43 Environmental Complexity ... 44 Environmental Munificence ... 45 Uncertainty ... 46 General Environment ... 47 Economy ... 48 Technological Component ... 50 Sociocultural Component ... 50 Political / Legal Component ... 51 Specific Environment ... 53 Customer Component ... 53 competitor Component ... 54 Supplier component ... 55 Industry Regulation Component ... 57 Advocacy Groups ... 57 Making Sense of Changing Environments ... 60 Environmental Scanning ... 60 Interpreting Environmental Factors ... 61 Acting on Threats and Opportunities ... 62 Internal Environments ... 63 Organizational Cultures : Creation, Success, and Change ... 64 Creation and Maintenance of Organizational Cultures ... 64 Successful Organizational Cultures ... 66 Changing Organizational Cultures ... 68 What Really Happened? ... 72 Key Terms ... 73 what Would You Do-ⅱ? ... 74 Critical-Thinking Video Case ... 75 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Three Ethics and Social Responsibility ... 80 What Is Ethical and Unethical Workplace Behavior? ... 82 Ethics and the Nature of <B><FONT color ... #0000 Workplace Deviance ... 85 U.S. Sentencing Commission Guidelines ... 87 Who, What, and Why? ... 87 Determining the Punishment ... 87 How Do You Make Ethical Decisions? ... 89 Influences on Ethical Decision Making ... 89 Ethical Intensity of the Decision ... 90 Moral Development ... 91 Principles of Ethical Decision Making ... 92 Practical Steps to Ethical Decision Making ... 94 Selecting and hiring Ethical Employees ... 94 Codes of Ethics ... 96 Ethics Training ... 97 Ethical Climate ... 98 What Is Social Responsibility? ... 99 To whom Are Organizations Socially Responsible? ... 100 For What Are Organizations Socially Responsible? ... 106 Responses to Demands for Social Responsibility ... 109 Social Responsibility and Economic Performance ... 110 What Really Happened? ... 113 Key Terms ... 114 What Would You Do-ⅱ? ... 115 Critical-Thinking Video Case ... 116 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Part Two Making Things Happen ... 119 Chapter Four Planning ... 120 Planning ... 121 Costs and Benefits of Planning ... 123 Benefits of Planning ... 123 Planning Pitfalls ... 124 How to Make a Plan That Works ... 127 Setting Goals ... 127 Developing Commitment to Goals ... 128 Developing Effective Action Plans ... 129 Tracking Progress ... 129 Maintaining Flexibility ... 131 Kinds of Plans ... 133 Planning from Top to Bottom ... 133 Starting at the Top ... 134 Bending in the Middle ... 138 Finishing at the Bottom ... 140 Special-Purpose Plans ... 143 Planning for Change ... 144 Planning for Contingencies ... 147 Planning for Product Development ... 150 What Really Happened? ... 154 Key Terms ... 155 What Would You Do-ⅱ? ... 156 Critical-Thinking Video Case ... 157 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Five Decision Making ... 160 What Is Rational Decision Making? ... 162 Steps to Rational Decision Making ... 164 Define the Problem ... 164 Identify Decision Criteria ... 166 Weight the Criteria ... 166 Generate Alternative courses of Action ... 168 Evaluate Each Alternative ... 170 Compute the Optimal Decision ... 170 Limits to Rational Decision Making ... 171 Bounded Rationality ... 172 Common Decision-Making Mistakes ... 174 Risk and Decision Making under Risky Conditions ... 176 Improving Decision Making ... 179 Using Rules and Testing to Improve Decision Making ... 180 Decision Rules ... 180 Multivariable Testing ... 181 Using Groups to Improve Decision Making ... 182 Advantages and Pitfalls of Group Decision Making ... 183 Structured Conflict ... 184 Nominal Group Technique ... 186 Delphi Technique ... 187 Electronic Brainstorming ... 187 What Really Happened? ... 191 Key Terms ... 192 What Would You Do-ⅱ? ... 193 Critical Thinking Video Case ... 193 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Six Managing Information ... 196 Why Information Matters ... 199 Characteristics and Costs of Useful Information ... 199 Accurate information ... 199 Complete information ... 199 Relevant information ... 200 Timely Information ... 201 Acquisition Costs ... 201 Processing Costs ... 201 Storage Costs ... 202 Retrieval Costs ... 202 Communication Costs ... 202 Strategic Importance of Information ... 203 First-Mover Advantage ... 203 Sustaining a Competitive Advantage ... 204 Information Technologies ... 206 Capturing, Storing, and Processing Information ... 206 Capturing Information ... 206 Storing Information ... 207 Processing information ... 210 Accessing and Sharing Information and Knowledge ... 213 Communication ... 213 Internal Access and Sharing ... 216 External Access and Sharing ... 219 Sharing Knowledge and Expertise ... 221 What Really Happened? ... 224 Key Terms ... 225 What Would You Do-ⅱ? ... 225 Critical-Thinking Video Case ... 226 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Seven Control ... 230 Basics of Control ... 232 The Control Process ... 233 Standards ... 233 Comparison to Standards ... 234 Corrective Action ... 234 Dynamic Process ... 236 Feedback, Concurrent and Feedforward Control ... 236 Is Control Necessary or Possible? ... 238 Is More Control Necessary? ... 239 Is More Control Possible? ... 240 Quasi-Control : When Control Isn't Possible ... 241 How and What to Control ... 243 Control Methods ... 244 Bureaucratic Control ... 245 Objective Control ... 246 Normative Control ... 247 Concertive Control ... 248 Self-Control ... 250 What to Control? ... 252 The Balanced Scorecard ... 252 The Financial Perspective : Controlling Economic Value Added ... 254 The Customer Perspective : controlling Customer Defections ... 257 The Internal Perspective : controlling Quality ... 259 The Innovation and Learning Perspective : controlling Waste and Pollution ... 261 What Really Happened? ... 265 Key Terms ... 266 What Would You Do-ⅱ? ... 267 Critical-Thinking Video Case ... 268 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Part Three Meeting the competition ... 271 Chapter Eight Global <B><FONT color ... #0000 What Is Global Business? ... 274 Impact of Global Business ... 274 Trade Rules and Agrements ... 279 Trade Barriers ... 279 Trade Agreements ... 281 Consumers, Trade Barriers, and Trade Agreements ... 284 How to Go Global? ... 285 Consistency or Adaptation? ... 286 Forms for Global Business ... 287 Exporting ... 288 Cooperative Contracts ... 288 Strategic Alliances ... 290 Wholly Owned affiliates (Build or Buy) ... 291 Global New Ventures ... 292 What Really Happened? ... 400 Key Terms ... 401 what Would You Do-ⅱ? ... 402 Critical-Thinking Video Case ... 403 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Eleven Designing Adaptive Organizations ... 408 Designing Organizational Structures ... 411 Departmentalization ... 413 Functional Departmentalization ... 413 Product Departmentalization ... 414 Customer Departmentalization ... 416 Geographic Departmentalization ... 419 Matrix Departmentalization ... 419 Organizational Authority ... 423 Chain of Command ... 423 Line Versus Staff Authority ... 423 Delegation of Authority ... 424 Degree of Centralization ... 426 Job Design ... 428 Job Specialization ... 428 Job Rotation, Enlargement, and Enrichment ... 430 Job Characteristics Model ... 431 Designing Organizational Processes ... 437 Intraorganizational Processes ... 437 Reengineering ... 439 Empowerment ... 441 Behavioral Informality ... 442 Interorganizational Processes ... 445 Modular Organizations ... 446 Virtual Organizations ... 448 Boundaryless Organizations ... 449 What Really Happened? ... 452 Key Terms ... 453 What Would You Do-ⅱ? ... 454 Critical-Thinking Video Case ... 455 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Part Four Organizing People, Projects, and Processes ... 459 Chapter Twelve Managing Individuals and a Diverse Work Force ... 460 Diversity and Why It Matters ... 463 Diversity : Differences That Matter ... 463 Diversity Is Not Affirmative Action ... 463 Diversity Makes Good Business Sense ... 465 Diversity and individual Differences ... 469 Surface-Level Diversity ... 471 Age ... 471 Gender ... 471 Race / Ethnicity ... 473 Mental or Physical Disabilities ... 474 Deep-Level Diversity ... 478 Big Five Dimensions of Personality ... 479 Work-Related Personality Dimensions ... 482 How Can Diversity Be Managed? ... 487 Managing Diversity ... 487 Diversity Paradigms ... 487 Diversity Principles ... 489 Diversity Training and Practices ... 491 What Really Happened? ... 494 Key Terms ... 495 What Would You Do-ⅱ? ... 496 Critical-Thinking Video Case ... 497 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Thirteen Managing Teams ... 500 Why Work Teams? ... 502 The Good and Bad of Using Teams ... 503 The Advantages of Teams ... 503 The Disadvantages of Teams ... 506 When to Use Teams ... 509 Kinds of Teams ... 512 Autonomy, the Key Dimension ... 513 Special Kinds of Teams ... 515 Managing Work Teams ... 518 Work Team Characteristics ... 519 Team Norms ... 519 Team Cohesiveness ... 520 Team Size ... 522 Team Conflict ... 523 Stages of Team Development ... 524 Enhancing Work Team Effectiveness ... 527 Setting Team Goals and Priorities ... 527 Selecting People for Teamwork ... 530 Team Training ... 530 Team Compensation and Recognition ... 532 What Really Happened? ... 538 Key Terms ... 538 What Would Do-ⅱ? ... 540 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Fourteen Managing Human Resource Systems ... 544 Determining Human Resource Needs. ... 546 Human Resource Planning ... 548 Forecasting Demand and Supply ... 549 Human Resource Information Systems ... 551 Employment Legislation ... 553 Federal Employment Laws ... 554 Adverse Impact and Employment Discrimination ... 556 Sexual Harassment ... 557 Finding Qualified Workers ... 560 Recruiting ... 560 Job Analysis and Recruiting ... 560 Internal Recruiting ... 562 External Recruiting ... 563 Selection ... 565 Application Forms and Resumes ... 565 References and Background Checks ... 567 Selection Tests ... 568 Interviews ... 571 Developing Qualified Workers ... 575 Training ... 575 Determining Training Needs ... 576 Training Methods ... 578 Evaluating Training ... 580 Performance Appraisal ... 581 Accurately Measuring job Performance ... 582 Sharing Performance Feedback ... 584 Keeping Qualified Workers ... 586 Compensation ... 586 Compensation Decisions ... 587 Employment Benefits ... 589 Employee Separations ... 590 Terminating Employees ... 590 Downsizing ... 591 Retirement ... 593 Employee Turnover ... 593 What Really Happened? ... 595 Key Terms ... 596 What Would You Do-ⅱ? ... 597 Critical-Thinking Video Case ... 598 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Fifteen Managing Service and Manufacturing Operations ... 602 Managing for Productivity and Quality ... 604 Productivity ... 604 Why Productivity Matters ... 605 Kinds of Productivity ... 606 Quality ... 608 Quality-Related Product Characteristics ... 609 Quality-Related Service Characteristics ... 610 ISO 9000 ... 611 Malcolm Baldrige National Quality Award ... 612 Total quality <B><FONT color ... #0000 Managing Operations ... 616 Service Operations ... 616 The Service-Profit Chain ... 617 Service Recovery and Empowerment ... 619 Manufacturing Operations ... 621 Amount of Processing in Manufacturing Operations ... 622 Flexibility of Manufacturing Operations ... 624 Inventory ... 628 Types of Inventory ... 629 Measuring Inventory ... 630 Costs of Maintaining an Inventory ... 632 Managing Inventory ... 633 What Really Happened? ... 638 Key Terms ... 640 What Would You Do-ⅱ? ... 640 Critical-Thinking Video Case ... 641 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Part Five Leading ... 645 Chapter Sixteen Motivation ... 646 What is Motivation? ... 647 Basics of Motivation ... 648 Effort and Performance ... 649 Need Satisfaction ... 651 Extrinsic and Intrinsic Rewards ... 653 Motivating with the Basics ... 655 How Perceptions and Expectations Affect Motivation ... 657 Equity Theory ... 657 Components of Equity Theory ... 658 How People React to Perceived Inequity ... 659 Motivating with Equity Theory ... 661 Expectancy Theory ... 663 Components of Expectancy Theory ... 663 Motivating with Expectancy Theory ... 665 How Rewards and Goals Affect Motivation ... 667 Reinforcement Theory ... 667 Components of Reinforcement Theory ... 669 Schedules for Delivering Reinforcement ... 671 Motivating with Reinforcement Theory ... 673 Goal-Setting Theory ... 676 Components of Goal-Setting Theory ... 677 Motivating with Goal-Setting Theory ... 679 Motivating with the Integrated Model ... 683 What Really Happened? ... 683 Key Terms ... 685 What Would You Do-ⅱ? ... 686 Critical-Thinking Video Case ... 687 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Seventeen Leadership ... 690 What Is Leadership? ... 692 Leadership ... 692 Leaders versus Managers ... 693 Substitutes for Leadership : Do Leaders Always Matter? ... 694 Who Leaders Are and What Leaders Do ... 697 Leadership Traits ... 697 Leadership Behaviors ... 700 Situational Leadership ... 703 Putting Leaders in the Right Situation : Fiedler's Contingency Theory ... 704 Leadership Style : Least Preferred Co-worker ... 705 Situational Favorableness ... 705 Matching Leadership Styles and Situations ... 707 Adapting Leader Behavior : Path-Goal Theory ... 708 Leadership Styles ... 709 Subordinate and Environmental Contingencies ... 712 Adapting Leader Behavior : Hersey & Blanchard's Situational Theory ... 713 Worker Maturity ... 714 Leadership Styles ... 714 Adapting Leader Behavior : Normative Decision Theory ... 716 Decision Styles ... 717 Decision Quality and Acceptance ... 717 Strategic Leadership ... 721 Visionary Leadership ... 721 Charismatic Leadership ... 722 Transformational Leadership ... 725 What Really Happened? ... 728 Key Terms ... 729 What Would You Do-ⅱ? ... 730 Critical-Thinking Video Case ... 731 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000 Chapter Eighteen Managing Communication ... 734 What Would You Do? ... 735 Communication ... 736 Perception and Communication Problems ... 737 Basic perception Process ... 737 Perception Problems ... 740 Perceptions of Others ... 742 Self-Perception ... 743 Kinds of Communication ... 744 The Communication Process ... 744 Formal Communication Channels ... 747 Informal Communication Channels ... 748 Coaching and Counseling : One-on-One Communication ... 750 Nonverbal Communication ... 751 Improving Communication ... 753 Managing One-on-One Communication ... 753 Choosing the Right Communication Medium ... 753 Listening ... 754 Giving Feedback ... 757 Improving Cross-Cultural Communication ... 758 Managing Organization-Wide Communication ... 760 Improving Transmission : Getting the Message Out ... 760 Improving Reception : Hearing What Others Feel and Think ... 762 What Really Happened? ... 765 Key Terms ... 766 What Would You Do-ⅱ? ... 766 Critical-Thinking Video Case ... 767 <B><FONT color ... #0000 Develop Your <B><FONT color ... #0000