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contemporary management 6th jones george contemporary management 6th jones george contemporary management 6th jones george contemporary management 6th jones george contemporary management 6th jones george contemporary management 6th jones george
LEARNSMART ADVANTAGE WORKS A B C D 30.5% 33.5% 22.6% 8.7% More C students 4.7% A B C D 19.3% 38.6% 28.0% 9.6% earn B’s *Study: 690 students / institutions 4.5% Without LearnSmart Over 20% more students pass the class with LearnSmart Pass Rate - 70% *A&P Research Study Without LearnSmart Pass Rate - 57% 100% – More than 60% – Extremely 80% – of all students agreed LearnSmart was a very or extremely helpful learning tool – Very 60% – 40% – – Moderately 20% – Jan - Dec 2011 Jan - Mar 2012 Jan–Dec 2011 Jan–Mar 2012 – – Slightly – Not at all *Based on 750,000 student survey responses http://bit.ly/LS4Apple > AVAILABLE ON-THE-GO http://bit.ly/LS4Droid How you rank against your peers? What you know (green) and what you still need to review (yellow), based on your answers Let’s see how confident you are on the questions COMPARE AND CHOOSE WHAT’S RIGHT FOR YOU BOOK LEARNSMART ASSIGNMENTS Looseleaf LearnSmart, assignments, and SmartBook—all in one digital product for maximum savings! 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Check with your instructor about a custom option for your course > Buy directly from the source at www.ShopMcGraw-Hill.com Essentials of Contemporary Management Sixth Edition Gareth R Jones Jennifer M George Rice University ESSENTIALS OF CONTEMPORARY MANAGEMENT, SIXTH EDITION Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2015 by McGrawHill Education All rights reserved Printed in the United States of America Previous editions © 2013, 2011, and 2009 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, without 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 DOW/DOW ISBN 978-0-07-786253-4 MHID 0-07-786253-8 Senior Vice President, Products & Markets: Kurt L Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Michael Ablassmeir Executive Director of Development: Ann Torbert Senior Development Editor: Trina Hauger Marketing Manager : Elizabeth Trepkowski Director, Content Production: Terri Schiesl Content Project Manager: Harvey Yep Senior Buyer: Michael R McCormick Design: Matt Diamond Cover Image: Veer Images Lead Content Licensing Specialist: Keri Johnson Typeface: 10.5/12 Baskerville Compositor: Laserwords Private Limited Printer: R R Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page Library of Congress Cataloging-in-Publication Data Jones, Gareth R Essentials of contemporary management/Gareth R Jones, Jennifer M George.—Sixth edition pages cm Includes index ISBN 978-0-07-786253-4 (alk paper)—ISBN 0-07-786253-8 (alk paper) Management I George, Jennifer M II Title HD31.J5974 2015 658 dc23 2013042410 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 www.mhhe.com Brief Contents Part One Part Five Management and Managers Leading Individuals and Groups Chapter One Chapter Nine The Management Process Today Appendix A: History of Management Thought 36 Motivation Chapter Ten Chapter Two Leaders and Leadership Values, Attitudes, Emotions, and Culture: The Manager as a Person 44 Chapter Eleven Part Two Chapter Twelve The Environment of Management Building and Managing Human Resources Chapter Three Managing Ethics and Diversity 78 Chapter Four Managing in the Global Environment 118 Part Three Decision Making, Learning, Creativity, and Entrepreneurship 154 Chapter Six 356 386 Part Six Controlling Essential Activities and Processes Chapter Thirteen Operations Management: Managing Vital Operations and Processes Appendix B: Career Development 184 Part Four Organizing and Change Chapter Seven Designing Organizational Structure 326 420 Chapter Fourteen Chapter Five Planning, Strategy, and Competitive Advantage Effective Team Management Communication and Information Technology Management Planning, Decision Making, and Competitive Advantage 296 222 Glossary Notes Photo Credits Name Index Subject Index Company Index 454 480 485 495 525 526 534 543 Chapter Eight Control, Change, and Entrepreneurship 258 v Contents Part One Management and Managers Chapter One The Management Process Today Overview Management Snapshot Tim Cook Succeeds Steve Jobs as CEO of Apple What Is Management? Achieving High Performance: A Manager’s Goal Why Study Management? Essential Managerial Tasks Planning Manager as a Person: Joe Coulombe Knows How to Make an Organization Work Organizing Leading Controlling Chapter Two 10 11 11 12 Levels and Skills of Managers Levels of Management Managerial Skills Recent Changes in Management Practices 13 13 15 18 Restructuring and Outsourcing 18 Managing Globally: First Outsourcing, Now Insourcing 20 Empowerment and Self-Managed Teams Values, Attitudes, Emotions, and Culture: The Manager as a Person 21 44 Overview Management Snapshot Kevin Plank’s Determination at Under Armour 45 Enduring Characteristics: Personality Traits 47 The Big Five Personality Traits 47 Other Personality Traits That Affect Managerial Behavior 51 Values, Attitudes, and Moods 52 and Emotions Values: Terminal and Instrumental Attitudes vi 53 54 Ethics in Action: Protecting the Environment and Jobs at Subaru of Indiana Automotive 56 Moods and Emotions 60 Management Insight: Emotions as Triggers for Changes in Organizations 61 Management in Action Challenges for Management in a Global Environment 22 Building Competitive Advantage Maintaining Ethical and Socially Responsible Standards Ethics in Action: “What Goes Around Comes Around”: How Dishonest Top Managers Can Corrupt Any Organization—Even a Court 23 25 26 Managing a Diverse Workforce 27 Utilizing IT and E-Commerce 28 Summary and Review 29 Management in Action 30 Topics for Discussion and Action 30 Building Management Skills: Thinking about Managers and Management 31 Managing Ethically 31 Small Group Breakout Exercise: Opening a New Restaurant 31 Be the Manager: Problems at Achieva 32 Bloomberg Businessweek Case in the News: Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World 32 Appendix A: History of Management Thought F W Taylor and Scientific Management Weber’s Bureaucratic Theory The Work of Mary Parker Follett The Hawthorne Studies and Human Relations Theory X and Theory Y 36 36 38 40 40 42 Management in Action Emotional Intelligence 63 Summary and Review Organizational Culture 63 Management in Action 73 Topics for Discussion and Action Building Management Skills: Diagnosing Culture Managing Ethically 73 Managers and Organizational Culture 65 The Role of Values and Norms in Organizational Culture 67 Culture and Managerial Action 71 73 74 74 Small Group Breakout Exercise: Making Difficult Decisions in Hard Times 75 Be the Manager 75 The Wall Street Journal Case in the News: More Action, Less Drama at Disney 75 vii Contents Part Two The Environment of Management Chapter Three Managing Ethics and Diversity 78 Overview Management Snapshot Whole Foods Market Practices What It Preaches 79 The Nature of Ethics 80 Ethical Dilemmas 81 Ethics and the Law 81 Changes in Ethics over Time 82 Stakeholders and Ethics 83 Stockholders 84 Managers 85 Employees 87 Suppliers and Distributors 87 Customers 87 Community, Society, and Nation 88 Rules for Ethical Decision Making 89 Why Should Managers Behave Ethically? 91 Chapter Four Sources of an Organization’s Code of Ethics 94 Ethical Organizational Cultures 95 The Increasing Diversity of the Workforce and the Environment Age Gender Race and Ethnicity Religion Capabilities/Disabilities Ethics in Action: Disabled Employees Make Valuable Contributions Managing in the Global Environment 96 97 98 99 100 101 102 118 Overview Management Snapshot Nokia Flips Its Approach to Managing the Global Environment 119 What Is the Global Environment? 120 The Task Environment 122 Suppliers Managing Globally: How Microsoft Became a Powerful Nokia Supplier Distributors Customers Competitors The General Environment Economic Forces Technological Forces viii 122 Sociocultural Forces Demographic Forces Political and Legal Forces The Changing Global Environment 131 133 133 134 The Process of Globalization 135 125 126 127 127 130 130 131 Managing Globally: IKEA Is on Top of the Furniture World 136 Declining Barriers to Trade and Investment 138 Declining Barriers of Distance and Culture 139 Effects of Free Trade on Managers 140 Management in Action Socioeconomic Background 104 Sexual Orientation 105 Focus on Diversity: Preventing Discrimination Based on Sexual Orientation 105 Other Kinds of Diversity 106 Managers and the Effective Management of Diversity 107 Critical Managerial Roles 107 Effectively Managing Diversity Makes Good Business Sense 109 Sexual Harassment Summary and Review 113 Management in Action 114 Topics for Discussion and Action 114 Building Management Skills: Solving Diversity-Related Problems 114 Managing Ethically 114 Small Group Breakout Exercise: Determining If a Problem Exists 115 Be the Manager 115 The Wall Street Journal Case in the News: Legislators Step Up Push for Paid Sick Leave 116 110 Forms of Sexual Harassment 111 Steps Managers Can Take to Eradicate Sexual Harassment 111 Management in Action The Role of National Culture 141 Cultural Values and Norms 142 Hofstede’s Model of National Culture 142 National Culture and Global Management 144 Manager as a Person: Kazuo Hirai Replaces Howard Stringer as CEO of Sony Summary and Review 148 Management in Action 149 Topics for Discussion and Action Building Management Skills: Analyzing an Organization’s Environment Managing Ethically: Small Group Breakout Exercise: How to Enter the Copying Business 149 Be the Manager: The Changing Environment of Retailing Bloomberg Businessweek Case in the News: How Samsung Became the World’s No Smartphone Maker 150 151 149 150 150 146 ix Names Index 531 Pape, W R., 516 Parker, L D., 496 Parker, S R., 495 Patterson, A., 503 Pearce, J A., 500, 507, 516 Pedigo, P R., 495 Peiperl, M A., 520 Pencer, Gerald, 185, 186 Pennings, J M., 495 Penrose, E, 507 Perez, Beatriz, 167 Perlez, J., 504 Perlroth, N., 325 Perm-Ajchariyawong, N., 519 Perrow, Charles, 226, 496, 508 Perry, M K., 507 Peters, L., 502, 514, 519 Peters, T J., 522 Peterson, K., 495 Peterson, R S., 499 Petty, R E., 517 Pfeffer, Jeffrey, 160, 504, 505, 513 Pickering, J F., 522 Pillai, R., 515 Pincus, Mark, 455 Pirtle, Thomas, 432 Plank, Kevin, 45–46, 496 Pleh, Muamer, 29 Podsakoff, P M., 514 Pohlmann, J T., 514 Polum, Shelly, 58 Polzer, J T., 500 Pondy, L R., 521 Poniewozik, J., 501 Porras, J., 507 Porter, C O L H., 497 Porter, E., 519, 520 Porter, L W., 59, 511 Porter, Michael, 198–201, 504, 507, 522 Portera, Joseph, 34 Poteet, M L., 520 Pounds, S., 510 Prahalad, C K., 507, 508 Pratt, M., 505 Premack, S., 521 Price, Sol, 33, 34 Pritchard, R D., 510 Provitera, M J., 495 Pryor, Michael, 397 Pugh, D S., 509 Ramanujam, V., 507 Ramirez, R R., 501 Ratz, J M., 501 Rauwald, C., 505 Raven, B., 513 Ravlin, E C., 516 Ray, S., 515 Reeves, M., 517 Regan, M B., 521 Reich, R B., 504 Reingold, J., 514 Reller, Tami, 256 Reses, Jackie, 325 Rhode, J G., 509 Rich, M., 518, 522 Roach, Andy, 430 Robbins, S., 512 Roberson, L., 62 Roberts, Barry S., 112, 503 Roberts, D., 496 Roberts, Deron, 27 Robertson, J., 503 Robie, C., 497 Robinson, B., 62 Robinson, G., 496, 503 Roddick, Anita, 50 Rodgers, R., 509 Rodgers, T J., 276, 426, 447 Roe, R A., 498 Roethlisberger, F J., 42, 496 Rogers, E M., 521 Rokeach, Milton, 53, 54, 497 Rollins, Kevin, 28 Rometty, Virginia, 98–99 Ronen, S., 511 Roos, D., 507 Rose, R L., 513 Rosen, B., 503, 517 Ross, G H B., 509 Ross, Philip, 385 Ross, Rich, 76 Ross, T L., 512 Roth, Joe, 76 Rotter, J B., 497 Roy, D., 496 Rugaber, C S., 502 Rugman, A M., 504 Rumelt, R P., 507 Russell, J W., 519 Russo, J E., 506 Rynes, S., 503, 519 Q S Quinn, J B., 518 Saari, L M., 511 Saavedra, R., 515 Saginaw, Paul, 330–331 Salamon, J., 520 Salancik, G R., 504 Salovey, P., 498 R Radosevich, D J., 511 Raia, A P., 509 Salpukas, A., 523 Salter, C., 506, 523 Sanchez, J I., 520 Sandberg, J., 522 Sanders, G., 143, 504 Sanders, L., 508 Sanders, W G., 500 Sarandos, Ted, 453 Sawyer, J E., 506 Sayeed, L., 517 Scanlon, Joseph, 320 Schacter, S., 517 Schaubroeck, J., 499 Schein, H., 499 Schendel, D., 507 Schick, David, 33 Schmalensee, R., 504, 507 Schmidt, K A., 506 Schmitt, R B., 521 Schneider, B., 65, 499, 512 Schoemaker, P J., 506 Schoenfeldt, L F., 512, 518 Schoenherr, R A., 508 Schreyogg, G., 509 Schriesheim, C A., 514, 515 Schuler, R S., 519 Schuman, M., 514 Schumpeter, J., 504, 522 Schwab, Marion, 111 Schwartz, J., 506 Schwenk, C R., 506 Scott, W R., 521 Sculley, John, Segal, T., 503 Seiders, K., 495 Sellers, P., 501 Seltzer, J., 515 Senge, Peter, 165, 171, 172, 505, 506 Sewell, D., 508 Seyle, D C., 500 Shackford, Dan, 116 Shama, A., 495 Sharpe, R., 501, 519 Shaw, J B., 512, 518 Shaw, K N., 511 Shaw, M E., 515 Shaw, W H., 496, 500 Shellenbarger, S., 521 Shepperd, J A., 517 Shleifer, A., 507 Shope Griffin, N., 510 Shulka, R K., 506 Shuman, Marc, 155–156 Silverman, R E., 385, 418 Simmering, M J., 497 Simon, Herbert, 160, 161, 163, 505 Simons, R., 509 Sinclair, R C., 498 Sinegal, Jim, 33, 34 Singer, B., 503 532 Names Index Singer, Howard, 147–148 Sinofsky, Steven, 256 Skaggs, Mark, 456 Skill, M S., 495 Skinner, B F., 511 Skinner, Jim, 242 Slaughter, J E., 499 Sluyter, D., 498 Smith, D B., 499, 512 Smith, David, 448 Smith, F J., 59 Smith, Fred, 237 Smith, R., 499 Smith, Russell, Smutniak, J., 505 Snell, S A., 519 Snider, Stacey, 77 Snyder, N T., 516 Solinger, N., 498 Soloman, R C., 500 Sommerville, R B., 498 Song, L., 64 Sorcher, M., 511 Sorensen, J B., 499 Sowray, B., 516 Spangler, W D., 497, 511, 512, 513 Spears, L., 513 Spector, P., 497 Spolsky, Joel, 397, 519, 520 Sproul, J R., 520 Sproull, L S., 516 Stahl, M J., 497, 511 Stalk, G., 521, 523 Stalker, G R., 508 Stamps, D., 502 Starbuck, W H., 506 Staw, B M., 498, 500, 514, 522 Steers, R M., 511 Stein, David, 422 Steiner, I D., 517 Steinman, H., 509 Stevens, A., 503 Steverman, B., 497 Stewart, R., 495 Stewart, T A., 510, 515 Stogdill, R., 512, 514, 519 Stone, Brad, 35, 479 Stopford, J., 508 Stratton, Jeff, 243 Strauss, S G., 517 Strausser, Jesse, 353 Stroebe, W., 506 Stuart, Jonathan, 378 Stundza, T., 523 Sullivan, D M., 507 Sullivan, R L., 519 Sullivan, S E., 495 Sutcliffe, K M., 496 Swann, W B., Jr., 500 Swartz, M., 499 Sy, T., 515 Symington, Rob, 299 T Taggart, J H., 522 Tahmincioglu, E., 521 Tashiro, H., 516 Taylor, Andrew, 297, 298 Taylor, E., 505 Taylor, Frederick W., 36–37, 40, 496, 508 Taylor, Jack, 297 Teece, D J., 507 Tellegen, Auke, 50, 498 Tepper, B J., 514 Tetrault, L A., 514 Tett, R P., 497 Thacker, R., 503 Tharenou, P., 495 Thomas, Charlie, 58 Thomas, David A., 404 Thomas, Ron, 58 Thompson, Don, 243 Thompson, J D., 509 Thurm, S., 512 Thurston, K., 519 Timmerman, L., 513 Tindall, Will, 300 Tiplady, R., 516 Tischler, Linda, 347, 515 Tita, B., 495 Todd, P A., 521 Tomiki, Hisashi, 474 Tosi, H L., 509, 511 Totty, M., 521 Townsend, A M., 516 Trevino, L K., 500, 522 Triandis, H C., 511 Trice, H M., 499 Trottman, M., 117 Tscheulin, D., 514 Tubbs, M E., 511 Tuckman, B W., 517 Turban, E., 521, 522 Turner, C., 509 Tversky, Amos, 159 Tylor, E B., 504 U Urmson, Chris, 478 V Valian, Virginia, 108, 503 Van Fleet, D D., 514 Van Maanen, J., 499, 500 van Olffen, W., 498 Vance, Ashlee, 453 Vancouver, J B., 512 Vander Lind, Damon, 479 Varadarajan, P., 507 Varley, Elizabeth, 181 Velasquez, M., 500 Victor, B., 500 Viola, Karen, 346 Vishny, R W., 507 Vitzthum, C., 507 Von Glinow, M., 519 Vroom, Victor H., 302 W Waber, Ben, 385 Wadhwa, V., 519 Wald, M L., 506 Waldman, D A., 515 Wall, T D., 59, 495, 516 Waller, M J., 495 Walsh, D., 513 Walsh, J P., 498, 506 Walster, W G., 506 Walton, Sam, 279, 280 Warkentin, M E., 517 Warr, P B., 59 Washington, R R., 513 Washko, John, 404 Waterman, A S., 500 Waterman, R H., Jr., 522 Watkins, S., 499 Watson, D., 498 Wauters, R., 518 Weber, J., 503 Weber, Marcel, 98 Weber, Max, 38, 39, 496 Webster, J., 62 Weick, K E., 499 Weiner, S P., 517 Weinzweig, Ari, 330–331 Weiss, D J., 55 Weiss, E M., 510 Weiss, H W., 511 Welch, Jack, 335, 389 Wellington, S., 501 Wellington, Sheila, 99 Wellner, A S., 502 Wells, L., 508 Wendell, Erin, 46 Wessel, D., 519 West, M S., 502 Wexley, K N., 520 Wheeler, J A., 520 Wheeler, S R., 502 Wheelright, S C., 506, 522, 523 White, E., 520 White, M C., 518 Whiting, V., 495 Whitman, Meg, 347, 480 Wicker, Scott, 167 Wieser, Brian, 479 Names Index Williams, E S., 515 Williams, J R., 508 Williams, K., 517 Williams, M L., 514, 523 Williamson, O E., 522 Willig, R D., 504, 507 Winer, B J., 514 Winslow, R., 522 Winter, D G., 497, 504, 511 Winter, R R., 504 Wiseman, Eric, 207 Witt, L A., 497 Wofford, J C., 514 Womack, J P., 507 Wong, C S., 64 Woodman, R W., 506 533 Woolridge, B., 509 Wootton, Peter, 256 Woycke, J., 497, 511 Wren, D., 496 Wright, P M., 518, 519 Wyant, C., 507 Wysocki, B., 495 Y Yamada, Tachi, 335 Yang, Jerry, 175 Yoder, R J., 512 Young, S., 508, 523 Youngblood, S A., 502, 519 Yukl, G., 512, 514 Z Zachary, G P., 521 Zager, R., 512 Zajac, D M., 498 Zander, A F., 513, 517 Zanna, M., 498 Zawacki, R A., 509 Zeldes, Nathan, 439 Zeller, W., 512 Zellner, W., 506 Zhou, J., 498, 499, 515 Zickar, M J., 499 Zuckerman, H., 503 Subject A Ability tests, 400 Accuracy, 188 Achievement, 483 Achievement orientation, 144 Achievement-oriented behaviors, 342 Acquired immune deficiency syndrome (AIDS), 103, 392 Action games, 455–456 Activity ratios, 270 Ad hoc committee, 248, 364 ADA (Americans with Disabilities Act), 98, 101, 392 Adaptive culture, 281, 282 Adjourning, 371 Administrative model, 160–163 Age, 97–98 Age Discrimination in Employment Act, 97–98, 392 Agile companies, 24 Aging of the population, 98, 133 Agreeableness, 48, 49 AIDS (acquired immune deficiency syndrome), 103, 392 AIDS awareness training, 103 Allocating authority, 242–248 Alternative courses of action, 165–166 Ambiguous information, 162 Americans with Disabilities Act (ADA), 98, 101, 392 Annual meeting, 70 Annual planning cycle, 192 Answering machine, 436 AOL–Time Warner merger, 160 Applications software, 445 Artificial intelligence, 448 ASA (attraction–selection–attrition) framework, 65 Assessment center, 400–401 Asynchronous technologies, 367 Attraction–selection–attrition (ASA) framework, 65 Authority, 38, 242 Autonomy, 231 B B2B (business-to-business) network, 251 Background checks, 399 Background information, 398–399 Backward vertical integration, 204 Barriers to entry, 128–130 Bay of Pigs invasion, 170 Behavior appraisal, 406 Behavior control, 274–278 534 Behavior model of leadership, 338 Belongingness needs, 306 Benchmarking, 286 Benefits, 411 Big, hairy, audacious goals (BHAGs), 194 Big Data/Big Brothers, 384–385 Big five personality traits, 47–51 agreeableness, 48, 49 conscientiousness, 49–50 extraversion, 48, 49 negative affectivity, 48, 50 openness to experience, 49–50 Big Three auto makers, 217–220 Black belts, 463–464 Blackbox, 444 Body weight, 107 Bonus, 319 Bottom-up change, 286 Boundaryless career, 482 Boundaryless organization, 251 Bounded rationality, 161 Brainstorming, 173–174 Brand loyalty, 129 Buffer stocks of inventory, 470 Built to Last, 193 Bureaucracy, 38 Bureaucratic control, 277, 278 Bureaucratic red tape, 39 Bureaucratic theory, 38–40 Business case for diversity, 109–110 Business ethics See Ethics Business-level plan, 190, 191 Business-level strategy, 191, 199–202 Business-to-business (B2B) network, 251 Business unit, 189 Buyer beware, 88 C Cafeteria-style benefit plan, 411 CAFTA (Central American Free Trade Agreement), 141 Cannabis, 82 Capabilities/disabilities, 101–103 Capanina Consortium, 479 Capital, 137–138 Car assembly lines, 466 Career, 480–484 Career development, 480–484 Career plateau, 483 Career stages, 482–484 Case in the news boxes Costco, 32–35 coworking, 181–182 Detroit Three, 217–220 Dish Network, 292–294 Dynergy Inc., 352–354 Google’s secret lab, 477–479 Microsoft, 256 Netflix, 452–453 open management, 416–418 paid sick leave, 116–117 Samsung, 151–152 tracking sensors in workplace, 384–385 Walt Disney Corporation, 75–77 Yahoo, 324–325 Caste systems, 132 Central American Free Trade Agreement (CAFTA), 141 Centralization, 246 CEO (chief executive officer), 7, 14, 86–87 CEO compensation, 7, 86–87 Ceremonies and rites, 69–71 Chain of command, 242 Challenger shuttle disaster, 157, 167, 170 Charismatic leader, 345–346 Chief executive officer (CEO), 7, 14, 86–87 Chief operating officer (COO), 14 Chief sustainability officer, 167–168 Child care, 104, 105 Chisellers, 42 Chrysler-Daimler merger, 160 Civil Rights Act (1991), 98, 392 Clan control, 279 Classical decision-making model, 160, 161 Cloud computing, 442, 443–444 Code of ethics, 95 Coercive power, 333–334 Coldbath Fields Prison, 82 Collaboration software, 429–430 Collective bargaining, 413 Collectivism, 143 Columbia shuttle disaster, 157, 167 Command group, 364 Commission pay, 320 Communication and information technology, 28–29, 420–453 cloud computing, 442, 443–444 collaboration software, 429–430 communication medium, 434 communication process, 430–431 dangers of ineffective communication, 432 definitions, 425, 428 e-mail, 437–438, 449 face-to-face communication, 435–436 impersonal written communication, 438–439 importance of good communication, 428–430 information distortion, 446 Subject Index information overload, 439 information richness, 434 IT revolution, 439–440 limitations of information systems, 448–449 managers, 423–428 network of computing power, 442–445 personally addressed written communication, 436–438 product life cycle, 440–441 spoken communication electronically transmitted, 436 verbal/nonverbal communication, 431–432 Communication medium, 434 Communication process, 430–431 Communist countries, 143 Community, 88 Company stakeholders, 84 Company-to-company sharing, 181 Competitive advantage, 17, 23 Competitors, 127–130 Complete information, 424 Complex mental models, 171 Complicated technologies, 226 Computer software, 445 Concentration on a single industry, 203 Concentro containers, 444 Conceptual skills, 15–16 Concurrent control, 264 Confidence, 52 Conscientiousness, 49–50 Consideration, 338 Contingency models of leadership, 339–344 Contingency theory, 224 Continuity, 188 Control process, 264–266 Control systems, 263 Controlling, 12, 72, 261, 426 See also Organizational control COO (chief operating officer), 14 Core competency, 17 Corporate Average Fuel Economy (CAFE) standard, 218 Corporate-level plan, 190 Corporate-level strategy, 202–214 concentration on a single industry, 203 defined, 190 diversification, 206–209 international expansion, 209–214 vertical integration, 204–206 Corporate scandals, 72, 83 Coworking, 181–182 Creativity defined, 171 emotion-laden process, as, 349 entrepreneurship, and, 174–177 group, 173–174 535 individual, 172–173 intrapreneurship, and, 176–177 CRM (customer relationship management), 460–462 Cross-cultural team, 363 Cross-departmental responsibility, 14 Cross-functional team, 106, 241, 247, 248, 363 Cross-functioning, 40 Cross-training, 23 Crossover utility vehicle, 219 Cultural values and norms, 142 Culturally diverse management team, 145 Current ratio, 269, 270 Customer relationship management (CRM), 460–462 Customer service, 24 Customers defined, 127 ethics, 87–88 global environment, and, 127 large, 198 performance appraisals by, 407 responsiveness to, 360, 458–462 what they want, 458 D Data, 423 Day care, 104 Days sales outstanding, 270 Death penalty, 83 Debt-to-assets ratio, 269, 270 Decentralizing authority, 246 Decision making, 156–170 administrative model, 160–163 classical model, 160, 161 defined, 157 group, 169–170 information and decisions, 425–426 programmed/nonprogrammed, 157–159 steps in process, 163–169 Decision support system, 447–448 Decisional roles and diversity, 108 Decline stage, 441 Decoding, 430 Defining the business, 193 Delphi technique, 174 Demand forecast, 393 Demographic forces, 134 Department, 13, 189 Deregulation, 133 Detroit Three, 217–220 Development, 402, 403–404 Developmental consideration, 346 Devil’s advocacy, 170 Differentiation strategy, 9, 200 Difficult goals, 311 Digital piracy, 92 Direct supervision, 274–275 Directive behaviors, 342 Disabled employees, 101–103, 102–103 Disney University, 69, 402 Disseminator role and diversity, 108 Distributors, 87, 126 Disturbance handler role and diversity, 108 Diversification, 206–209 Diversity, 27–28, 96–110 age, 97–98 business case for, 109–110 capabilities/disabilities, 101–103 defined, 96 EEO laws, 98 gender, 98–99 See also Women group decision making, 170 lawsuits, 110 managers, and, 107–108 other kinds of, 106–107 overview (figure), 97 physical appearance, 107 race and ethnicity, 99–100 religion, 100–101 sexual orientation, 105–106 socioeconomic background, 104–105 Division, 189, 234 Division of labor, 228, 369 Divisional manager, 189 Divisional structure, 234–238 Domestic partner benefits, 105 Dumping waste, 88 E E-mail, 437–438, 449 Early career, 483 Economic feasibility, 166 Economic forces, 130–131 Economies of scale, 128–129 EEO (equal employment opportunity), 391 EEO (equal employment opportunity) laws, 98, 392 Effective career management, 484 Effective plans, 188–189 Effectiveness, Efficiency, 464–473 defined, facilities layout, 466–467, 468 flexible manufacturing, 467–469 JIT inventory system, 470–471 process reengineering, 471–473 self-managed work teams, 471 Effort, 299 Embryonic stage, 441 Emotional experience, 61–62 Emotional intelligence, 63, 64, 348–349 Emotions, 60 536 Subject Index Employee benefits, 411 Employee feedback, 432–433 Employee stock option, 320 Employee stock ownership plan (ESOP), 281 Employment interview, 399–400 Empowerment, 21–22, 24, 336 Encoding, 430 Energy drinks, 132 Entrepreneur, 174, 175–176, 286 Entrepreneur role and diversity, 108 Entrepreneurship, 174–177, 287 Entry barriers, 128–130 Equal employment opportunity (EEO), 391 Equal employment opportunity (EEO) laws, 98, 392 Equal Pay Act, 98, 392, 412 Equity, 308–309 Equity theory, 308–311 ESOP (employee stock ownership plan), 281 Establishment, 483 Esteem needs, 306 Ethical career practices, 484 Ethical dilemma, 81 Ethical organizational culture, 95–96 Ethical rules, 89, 90–91 Ethics, 25–26, 80–96 See also Ethics in action boxes changes over time, 81, 82–83 community, society, and nation, 88 customers, 87–88 decision making and, 166 defined, 81 effects of ethical/unethical behavior, 92 employees, 87 ethics ombudsperson, 96 individual, 95 managers, 85–87, 96 marijuana, 82–83 organizational culture, and, 95–96 professional, 95 reputation, 93 rules for ethical decision making, 89, 90–91 societal, 94–95 stockholders, 84–85 suppliers and distributors, 87 why behave ethically?, 91–94 Ethics in action boxes disabled employees, 102–103 human cost of improving productivity, 474 servant leadership (Zingerman’s), 330–331 Subaru of Indiana Automotive, 56–57 sustainability, 167–168 sweatshop labor, 250–251 Ethics officer, 96 Ethics ombudsman, 96 European Union (EU), 133 Executive compensation, 7, 86–87 Exercise price, 320 Expanding internationally, 209–214 Expectancy, 302 Expectancy theory, 302–305 Expert power, 334, 335 Expert system, 448 Exporting, 212 External locus of control, 51 External recruiting, 396 Extinction, 315 Extraversion, 48, 49 Extravert, 48 Extrinsically motivated behavior, 300 F Face-to-face communication, 435–436 Faces Scale, 55 Facilities layout, 466–467, 468 Fair Labor Standards Act, 412 Family and Medical Leave Act, 98, 392 Feedback, 231 Feedback control, 264 Feedback phase, 430 Feedforward control, 263 Fiedler’s contingency model, 339–340, 344 Figurehead role and diversity, 108 Financial capital, 137 Financial crisis (2009), 19 Financial measures of performance, 269–270 Firms’ founders, 65, 67–68, 287–288, 289 First-line manager, 13–14, 15 Fitness craze, 132 Five forces model, 198 Fixed-position layout, 466, 467 Flat organization, 244, 245 Flexibility, 24, 189 Flexible manufacturing, 466, 467–469 Focused differentiation strategy, 201 Focused low-cost strategy, 201 Folkways, 142 Foreign investment (international expansion), 209–214 Formal appraisal, 408 Formal education, 404 Formal group, 363 Formal leader, 370 Forming, 370 Formulating strategy See Strategy formulation Forward vertical integration, 204, 205 Founders/founding entrepreneurs, 65, 67–68, 287–288, 289 Franchising, 213 Free trade, 139, 140–141 Free Trade Area of the Americas (FTAA), 141 Free-trade areas, 141 Free-trade doctrine, 139 Friendship group, 368 FTAA (Free Trade Area of the Americas), 141 Function, 232 Functional-level plan, 190, 191 Functional-level strategy, 191 Functional manager, 190 Functional structure, 232–234 Fuzzy logic, 448 G Game developers, 455–456 GATT (General Agreement on Tariffs and Trade), 139 Gay and lesbian employees, 105–106 Gender, 98–99 See also Women Gender pay gap, 98 General Agreement on Tariffs and Trade (GATT), 139 General and Industrial Management (Fayol), General environment, 122, 130–134 Generating alternatives, 165 Geographic structure, 235, 237–238 Glass ceiling, 97, 99 Glass Ceiling Commission Report, 97 Global competition, 22–24 Global environment, 118–152 See also Managing globally boxes barriers to entry, 128–130 competitors, 127–130 customers, 127 declining barriers, 138–140 defined, 120, 121 demographic forces, 134 distributors, 126 economic forces, 130–131 free trade, 139, 140–141 global outsourcing, 124 globalization, 135–138 national culture, 141–145 overview (figure), 121 political and legal forces, 133–134 regional trade agreements, 140–141 sociocultural forces, 131–133 suppliers, 122–124 technological forces, 131 Global geographic structure, 237–238 Global organizations, 22, 120 Global outsourcing, 124 Global product structure, 237, 238 Global strategy, 210 Global supplier network, 123 Global team, 145 Subject Index Global village, 136 Globalization, 135–138 Goal setting, 193–194 Goal-setting theory, 311–312 Golden rule, 82 Google Glass, 478 Google X, 477–479 Government regulations, 129 Green belts, 464 GRid70, 181 Group, 358 See also Teams and groups Group cohesiveness, 374–377 Group creativity, 173–174 Group decision making, 169–170 Group development, 370–371 Group identity, 376–377 Group leadership, 370 Group norms, 371 Group roles, 369–370 Group size, 369, 376, 380 Groupthink, 169–170, 363 Growth stage, 441 H Hamburger University, 402 Hawthorne effect, 41 Hawthorne studies, 40–42 Health Care Reform Bill, 411 Health insurance coverage, 411 Herzberg’s motivation-hygiene theory, 307 Hewlett-Packard–Compaq merger, 160 Hierarchy of authority, 242 Hierarchy of needs, 305–306 High-performing organizations, High-power-distance societies, 144 History of management thought, 36–43 Follett, 40 Hawthorne studies, 40–42 scientific management, 36–38 Theory X/Theory Y, 42–43 Weber’s bureaucratic theory, 38–40 HIV-positive employees, 392 HIV-related discrimination, 103 Hofstede’s model of national culture, 142–144 Hostile work environment sexual harassment, 111 House’s path-goal theory, 341–342, 344 HRM See Human resource management (HRM) Human capital, 137 Human immunodeficiency virus (HIV), 103 Human resource management (HRM), 386–419 EEO laws, 392 human resource planning, 393–394 job analysis, 395 537 labor relations, 390–391, 412–413 legal environment, 391–392 organizational structure, and, 227 overview, 390–391 pay and benefits, 390, 410–411 performance appraisal and feedback, 390, 405–409 recruitment and selection, 390, 392–401 selection process, 398–401 strategic HRM, 389 training and development, 390, 402–405 Human resource planning, 393–394 Human resources movement, 41 Human skills, 16 Hygiene needs, 307 I Impersonal written communication, 438–439 Importing, 212 Incomplete information, 161–163 Individual ethics, 95 Individualism, 143 Inequity, 309 Inert culture, 281 Informal appraisal, 409 Informal group, 363 Informal leader, 370 Informal organization, 42 Information ambiguous, 162 attributes, 423–424 control, and, 426 coordination, and, 428 decisions, and, 425–426 defined, 423 incomplete, 161–163 Information costs, 163 Information distortion, 446 Information overload, 439 Information richness, 434 Information technology (IT), 425 See also Communication and information technology Informational roles and diversity, 108 Initiating structure, 338 Innovation communication, and, 429 defined, 24 entrepreneurship, and, 177 teams, and, 360–361 Input, 301 Insourcing, 19, 21 Instrumental value, 53, 54, 67 Instrumentality, 304 Integrating mechanisms, 247 Integrating roles, 247, 248 Intellectual stimulation, 346 Interest group, 368 Intermediate-term plan, 191 Internal locus of control, 51 Internal recruiting, 398 International expansion, 209–214 franchising, 213 global vs multidomestic strategy, 210 importing/exporting, 212 joint venture, 213 licensing, 212–213 strategic alliance, 213 wholly owned foreign subsidiary, 213–214 Interpersonal roles and diversity, 108 Interview, 399–400 Intrapreneur, 175, 287 Intrapreneurship, 176–177 Intrinsically motivated behavior, 299 Introvert, 48 Intuition, 158 Inventory, 470 Inventory turnover, 270 iPhone 4S, 441 IPod, 441 Irrelevant information, 424 Islamic Sabbath, 145 IT revolution, 439–440 J Japan collectivism, 143 lifetime employment, 147 merit pay plans, 321 operating budgets/challenging goals, 273 restrictive trade practices, 130 rice market, 129 safety needs, 306 JIT (just-in-time) inventory system, 470–471 Job analysis, 395 Job characteristics model, 230–231 Job description, 395 Job design, 227 Job enlargement, 228–229 Job enrichment, 229 Job interview, 399–400 Job satisfaction, 54–58 Job simplification, 228 Job-specific skills, 16, 17 Job specification, 395 Joint venture, 213 Judgment, 158 Just-in-time (JIT) inventory system, 470–471 Justice rule, 89, 90–91 538 Subject Index K Kanban, 470 Knowledge management system, 251 L Labor productivity, 465 Labor relations, 390–391, 412–413 LAN (local area network), 442, 445 Landline telephone companies, 440 Language, 70–71 Laptop, 441 Large customers, 198 Large suppliers, 198 Late career, 484 Lateral move, 398 Layoff decisions, 85 Layoffs, 57–58 Leader-member relations, 340 Leader role and diversity, 108 Leader substitutes model, 342–343, 344 Leaders and leadership, 11, 326–355 behavior model, 338 charismatic leader, 345–346 contingency models, 339–344 cross-cultural differences, 332 definitions, 329 emotional intelligence, 348–349 empowerment, 336 Fiedler’s contingency model, 339–340, 344 gender, 347–348 groups and teams, 370 House’s path-goal theory, 341–342, 344 leader/manager, compared, 330 leader substitutes model, 342–343, 344 personal leadership style, 328–329 power, 332–336 servant leader, 330 trait model, 337–338 transactional leader, 347 transformational leadership, 344–347 Leadership substitute, 342 Leading, 11–12, 72 Learning, 312 Learning from feedback, 168–169 Learning organization, 171–172 Learning theories, 312–317 Legal forces, 133–134 Legitimate power, 332 Lesbian, gay, bisexual, or transgender (LGBT) employees, 105–106 Levels of management, 13–15 Leverage ratios, 269–270 Lewd jokes, 111 LGBT (lesbian, gay, bisexual, or transgender) employees, 105–106 Liaison role, 247–248 Liaison role and diversity, 108 Licensing, 212–213 Line manager, 243 Linear career, 481 Liquidity ratios, 269 Local area network (LAN), 442, 445 Locus of control, 51 Long-distance learning, 404 Long-term orientation, 144 Long-term plan, 191 Low-carb foods, 133 Low-cost strategy, 9, 199–200 Low-power-distance countries, 144 M Macroeconomic conditions, 130 Management defined, entrepreneurship, contrasted, 176 levels, 13–15 open, 416–418 tasks, 7–12 turnaround, 25 why study? 6–7 Management by exception, 246, 276 Management by objectives (MBO), 275–277 Management by wandering around, 435 Management information system (MIS), 445–448 decision support system, 447–448 defined, 425 expert system, 448 operations information system, 447 transaction processing system, 446–447 Manager attitudes, 54–60 control, and, 426 coordination, and, 428 decision making, 156–169, 425–426 diversity, and, 107–108 emotional intelligence, 63, 64 employee feedback, and, 432–433 ethics, and, 85–87, 96 free trade, and, 140–141 job satisfaction, 54–58 leader, contrasted, 330 levels, 13–15 line-staff, 243 moods and emotions, 60–62 operations, 457 organizational commitment, 58–59 organizational culture, and, 65–66 overconfidence, 159–160 roles, 108 sexual harassment, and, 111–113 skills, 15–18 Managerial decision making, 156–169 See also Decision making Managerial overconfidence, 159–160 Managerial power, 332–336 Managerial roles and diversity, 108 Managerial skills, 15–18 Managerial tasks, 7–12 controlling, 12 leading, 11–12 organizing, 11 planning, 8–9 Managing globally boxes Igus Inc., 469–470 IKEA, 136–137 insourcing, 20–21 Nokia and Microsoft, 125–126 outsourcing, 20–21, 394–395 seeking intrinsic motivation in farflung places, 299–300 Marijuana, 82–83 Market structure, 235, 238 Maslow’s hierarchy of needs, 305–306 Mass production, 466 Matrix structure, 239–241 Maturity stage, 441 MBO (management by objectives), 275–277 McClelland’s needs for achievement, affiliation, and power, 307–308 “McLanguage,” 70 Measuring performance, 265–266 Mediator, 413 Medical ethics, 95 Medical marijuana, 82 Medium, 430 Mentoring, 404, 483 Merit pay, 318–319 Merit pay plan, 318, 320–321 Message, 430 Midcareer, 483–484 Middle manager, 14 Mimicking human expertise, 448 Minimum chain of command, 245–246 Minnesota Satisfaction Questionnaire, 55 MIS See Management information system (MIS) Mission statement, 186–187, 193 Monitor role and diversity, 108 Mood, 60 Moods and emotions, 60–62 Moral rights rule, 89, 90 Moral scruples, 81 Mores, 142 Motivation, 296–325 defined, 299 equity theory, 308–311 expectancy theory, 302–305 goal-setting theory, 311–312 groups and teams, 362, 377–379 Subject Index Herzberg’s motivation-hygiene theory, 307 intrinsic/extrinsic, 299, 300 learning theories, 312–317 Maslow’s hierarchy of needs, 305–306 McClelland’s needs for achievement, affiliation, and power, 307–308 motivation equation, 302 need theories, 305–308 operant conditioning theory, 314–316 pay, 317–321 prosocially motivated behavior, 301 social learning theory, 316–317 Motivation equation, 302 Motivation-hygiene theory, 307 Motivator needs, 307 Multidomestic strategy, 210 N NAFTA (North American Free Trade Agreement), 134, 141 National culture, 132, 141–145 National Labor Relations Act (1935), 412 Need for achievement, 52, 307 Need for affiliation, 52, 307 Need for power, 52, 307 Need theories, 305–308 Needs assessment, 402 Negative affectivity, 48, 50 Negative emotions and moods, 61, 62 Negative reinforcement, 314, 316 Negative reinforcer, 314 Negotiator role and diversity, 108 Network of computing power, 442–445 Network structure, 249 Neural networks, 448 New ventures, 175–177 Newsletter, 438 Noise, 430 Nominal group technique, 174 Nonprogrammed decision making, 158–159 Nonroutine technology, 226 Nonverbal communication, 431–432 Norm, 371 Norming, 371 Norms, 39, 53, 142 North American Free Trade Agreement (NAFTA), 134, 141 Nurturing orientation, 144 Nutra-Sweet, 122–123 O O-bento, 129 Obesity, 107 Objective appraisal, 406 Observational learning, 316 Obsolescence, 131 539 OCBs (organizational citizenship behaviors), 57 Occupational Safety and Health Act, 412 Offshoring, 394 On-the-job training, 402–403 Open management, 416–418 Openness to experience, 49–50 Operant conditioning theory, 314–316 Operating budget, 273 Operating margin, 269, 270 Operating system software, 445 Operations information system, 447 Operations management, 454–479 defined, 457 efficiency, 464–473 facilities layout, 466–467, 468 flexible manufacturing, 467–469 JIT system, 470–471 process reengineering, 471–473 purpose, 457 quality, 462–463 responsiveness to customers, 458–462 self-managed work team, 471 Operations manager, 457 Optimum decision, 160 Organizational behavior, 42 Organizational change, 282–289 assessing need for change, 283–284 deciding on change to make, 284–285 defined, 283 entrepreneurship, 286–289 evaluating the change, 286 implementing the change, 285–286 obstacles to change, 284–285 steps in change process, 283 top-down/bottom-up change, 285–286 Organizational change process, 283 Organizational citizenship behaviors (OCBs), 57 Organizational commitment, 58–59 Organizational control, 261–282 behavior control, 274–278 bureaucratic control, 277, 278 clan control, 279 concurrent control, 264 control process, 264–266 direct supervision, 274–275 entrepreneurship, 286–289 feedback control, 264 feedforward control, 263 financial measures of performance, 269–270 importance, 261–262 IT, 263–264 MBO, 275–277 operating budget, 273 organizational culture, and, 279 organizational goals, 272–273 output control, 269–274 Organizational culture adaptive vs inert cultures, 281–282 ASA model, 65 ceremonies and rites, 69–71 control system, as, 279 controlling, 72 defined, 63, 279 ethics, 95–96 leading, 72 organizing, 71–72 planning, 71 socialization, 68–69 stories and language, 70–71 values of founder, 67–68 Organizational design, 224, 227 Organizational entry, 482 Organizational goals, 193–194 Organizational hierarchy, 446 Organizational language, 70–71 Organizational learning, 171, 176, 283 Organizational mission, 193 Organizational performance, Organizational rites, 69–70 Organizational socialization, 68–69 Organizational structure, 222–256 allocating authority, 242–248 B2B network, 251 boundaryless organization, 251 centralization/decentralization, 246 coordinating functions and divisions, 242–248 defined, 11, 224 divisional structure, 234–238 functional structure, 232–234 geographic structure, 235, 237–238 grouping jobs into functions/divisions, 232–242 grouping tasks into jobs, 227–231 human resources, 227 integrating and coordinating mechanisms, 247–248 job characteristics model, 230–231 job enlargement/job enrichment, 228–229 market structure, 235, 238 matrix structure, 239–241 minimum chain of command, 245–246 network structure, 249 organizational environment, 224–225 product structure, 235–237 product team structure, 240, 241–242 strategic alliance, 249 strategy, 225–226 tall/flat organizations, 244, 245 technology, 226, 245 Organizations, Organizationwide computing network, 442 Organizationwide ethics committee, 96 Organizationwide goal setting, 272 Organizing, 11, 71–72 540 Subject Index Outcome, 301 Output control, 269–274 Outsourcing, 19, 20, 124, 250, 393–395 Overconfidence, 159–160 Overpayment inequity, 309, 310 P Paid sick leave, 116–117 Paper-and-pencil tests, 400 Partial productivity, 465 Participative behaviors, 342 Path–goal theory, 341–342, 344 Pay, 410 Pay and benefits, 390, 410–411 Pay and motivation, 317–321 Pay level, 410 Pay structure, 410 Peer appraisal, 407 Performance appraisal and feedback, 390, 405–409 Performance feedback, 405, 408–409 Performance measures, 265–266 Performance tests, 400–401 Performing, 371 Persistence, 299 Personal leadership style, 328–329 Personal mastery, 171 Personality test, 400 Personality traits agreeableness, 48, 49 conscientiousness, 49–50 defined, 47 extraversion, 48, 49 locus of control, 51 needs for achievement, affiliation, and power, 52 negative affectivity, 48, 50 openness to experience, 49–50 self-esteem, 51–52 Personally addressed written communication, 436–438 Physical ability tests, 400 Physical appearance, 107 Physiological needs, 306 Piece-rate, 320 Planning, 8–9, 186–192 defined, 186 effective plans, 188–189 importance, 187–188 levels/types, 189–191 mission statement, 186–187, 193 organizational culture, 71 single-use plans, 192 standing plans, 192 steps in process, 186–187 strategy formulation, and, 194 Planning horizon, 192 Policy, 192 Political and legal forces, 133–134 Political capital, 138 Political integration of countries, 133 Pollution, 88 Porter’s business-level strategies, 199 Porter’s five forces model, 198 Portfolio strategy, 209 Position power, 340 Positive emotions and moods, 60–61, 62 Positive reinforcement, 314 Positive reinforcer, 314 Potential competitors, 128 Poverty, 104 Power, 332–336 Power distance, 143–144 Practical rule, 89, 91 Practicality, 166 Pregnancy Discrimination Act, 98, 392 Premium price, 200 Private-to-public sharing, 181 Privatization, 133 Process layout, 466 Process reengineering, 471–473 Product champion, 177 Product layout, 466 Product life cycle, 440–441 Product structure, 235–237 Product team structure, 240, 241–242 Production blocking, 174 Production system, 457 Professional ethics, 95 Profit ratios, 269 Profit sharing, 320 Program, 192 Programmed decision making, 157–158 Project, 192 Prosocially motivated behavior, 301 Punishment, 315–316 Q Quality, 24, 462–463 Quick ratio, 269, 270 Quid pro quo sexual harassment, 111 R Race and ethnicity, 99–100 Racial discrimination, 97, 100 Rack servers, 442, 443 Ratebusters, 42 Ratio analysis, 269–270 R&D (research and development) team, 364 Real-time information, 424 Reasoned judgment, 158 Receiver, 430 Recruitment, 392 Recruitment and selection, 390, 392–401 Reengineering, 471–473 References, 401 Referent power, 335–336 Regional trade agreements, 140–141 Related diversification, 206–208 Relationship-oriented leader, 339 Relevant information, 424 Reliability, 401 Religious diversity, 100–101 Reputation, 93 Research and development (R&D) team, 364 Resource allocator role and diversity, 108 Resource capital, 138 Resources, Responsiveness to customers, 360, 458–462 Restructuring, 19 Results appraisal, 406 Retirement, 133 Return on investment (ROI), 269, 270 Reward power, 333 Risk, 161 Rite of enhancement, 69, 70 Rite of integration, 69–70 Rite of passage, 69 ROI (return on investment), 269, 270 Role making, 370 Role playing, 402 Rolling plan, 192 Routine technology, 226 Rules, 39, 192, 277, 278 S Safety needs, 306 Salary increase, 319 Same-sex domestic partner benefits, 411 Satisficing, 163 Scale economies, 128–129 Scandals, 72, 83 Scanlon plan, 320 Scenario planning, 195 Scientific management, 36–38 Scientific research, ethics of, 95 Selection, 392 Selection process, 398–401 Selection tools, 399 Self-actualization needs, 306 Self-appraisal, 407 Self-efficacy, 317 Self-esteem, 51–52 Self-managed team, 22 Self-managed work team, 364–366, 471 Self-management of behavior, 317 Self-reinforcement, 316–317 Self-reinforcer, 317 Sender, 430 Subject Index Sensors, 384–385 Servant leader, 330 Server computers (servers), 443 Server farms, 443 Service-based economy, 24 Severance package, 411 Sexual harassment, 110–113 Sexual orientation, 105–106 Shared vision, 171 SharePoint, 430 Short-term orientation, 144 Short-term plan, 191 Simulations, 402 Single-use plans, 192 Situational interview questions, 399 Six Sigma, 389–390, 463–464 Skill variety, 231 “Skip level” meetings, 433 Skunkworks, 177 Slavery, 81–82 Smart buildings, 385 Smartphone, 441 Social entrepreneur, 175 Social learning theory, 316–317 Social loafing, 379–381 Social responsibility, 26 Social Security, 411 Social stratification, 132 Social structure, 131 Socialization, 68–69 Societal ethics, 94–95 Sociocultural forces, 131–133 Socioeconomic diversity, 104–105 Soft drink industry, 185–186, 205 SOPs (standard operating procedures), 39, 192, 277 Space-usage sensors, 385 Span of control, 242 Specific, difficult goals, 311–312 Specific goals, 311 Speed, 24 Spiral career, 481 Splenda, 123 Spoken communication electronically transmitted, 436 Spokesperson role and diversity, 108 Sports shoe industry, 250–251 Staff manager, 243 Stakeholders, 84 Standard operating procedures (SOPs), 39, 192, 277 Standing plans, 192 Steady-state career, 481 Stella & Dot University, 313 Stock option, 320 Stockholders, 84–85 Stories and language, 70–71 Storming, 370 Strategic alliance, 213, 249 541 Strategic human resource management, 389 Strategic leadership, 193 Strategy, 9, 186 Strategy formulation, 194–214 business-level strategy, 199–202 corporate-level strategy, 202–214 defined, 194 five forces model, 198 SWOT analysis, 194–197 Strategy implementation, 214 Stretch goals, 272 Structured interview, 399 “Stuck in the middle,” 200 Subjective appraisal, 407 Subordinates, performance appraisals by, 407 Substitute products, 198 Substitutes for leadership, 342–343 Suppliers, 87, 122–124 Supply forecast, 393 Supportive behaviors, 342 Sustainability, 167–168 Sweatshop labor, 250–251 Sweatshop practices, 25, 26 SWOT analysis, 194–197 Synchronous technologies, 367 Synergy, 206, 359 Systems thinking, 171 T Tablet computer, 441 Tall organization, 244, 245 Tariff, 138 Task analyzability, 226 Task environment, 121, 122–130 Task force, 247, 248, 364 Task identity, 231 Task-oriented leader, 340 Task significance, 231 Task structure, 340 Task variety, 226 Team learning, 171 Teams and groups, 356–385 command group, 364 competitive advantage, 359 conformity and deviance, 372–373, 375 definitions, 358 diversity, 376 formal/informal group, 363 friendship group, 368 group cohesiveness, 374–377 group identity, 376–377 group leadership, 370 group norms, 371 group roles, 369–370 group size, 369, 376, 380 innovation, 360–361 interest group, 368 level of participation within group, 374–375 motivation, 362, 377–379 organizational effectiveness, 358–362 organizational goals, 375 overview (figure), 363 performance enhancers, 359–360 R&D team, 364 responsiveness to customers, 360 self-managed work team, 364–366 social loafing, 379–381 stages of group development, 370–371 success, 377 task force, 364 top management team, 363 virtual team, 367–368 Technical skills, 16 Technological forces, 131 Technology, 131 Telecommuting, 131, 437–438 Terminal value, 53, 54, 67 Text messaging, 131 Theory X, 42–43 Theory Y, 43 Thermostat, 268 360-degree appraisal, 408 Time constraints, 163 Time horizon, 191 Timely information, 424 Times-covered ratio, 269, 270 Title VII of the Civil Rights Act, 98, 100, 392 Top-down change, 285 Top management team, 14, 363 Top manager, 14, 15, 86 Total factor productivity, 465 Total quality management (TQM), 24 Tracking sensors in the workplace, 384–385 Trade barriers, 134 Training, 313, 402–403 Training and development, 390, 402–405 Trait appraisal, 405–406 Trait model of leadership, 337–338 Transaction processing system, 446–447 Transactional leader, 347 Transformational leadership, 344–347 Transitory career, 481 Transmission phase, 430 Trust, 93 Turnaround management, 25 Two-boss employees, 239 U Uncertainty, 162 Uncertainty avoidance, 144 542 Subject Index Underpayment inequity, 309, 310 Unemployment insurance, 411 Uniform Guidelines on Employee Selection Procedures, 391 Unions, 412–413 United States attitudes toward women and gays and lesbians, 132 CEO/top manager pay, 410 fast-food industry, 88 individualism, 143 pay differential, 410 personal health and fitness, 132 poverty rate, 104 unions, 413 Unity, 188 Unrelated diversification, 208–209 Unstructured interview, 399 Uruguay Round, 139 Useful information, 423–424 Utilitarian rule, 89, 90 V W Valence, 304 Validity, 401 Value system, 53 Values, 142 Values of founder, 67–68 Varied work experience, 403–404 Venture capitalists, 289 Verbal communication, 431 Vertical integration, 204–206 Vertical value chain, 205 Vicarious learning, 316 Vice president, 14 Video, 402 Videoconferencing, 131, 174, 435–436 Vietnam War, 170 Virtual team, 367–368 Voice mail, 436 Volcker rule, 86 Vulgar language, 111 Wages, 410 Watergate break-in, 170 Weber’s bureaucratic theory, 38–40 White Collar Sweatshop (Fraser), 311 ”White House Guidelines on Religious Exercise and Expression in the Federal Workplace, The,” 99 Wholly owned foreign subsidiary, 213–214 Women EEO legislation, 137 leaders, as, 347–348 pay gap, 98 sexual harassment, 110–113 superior performance, 99 workplace discrimination, 108, 347 Workers’ compensation, 411 Workers’ multidimensional lives, 484 Company A Accenture, 6, 18, 28, 127, 181, 251, 448 Acer, 9, 12, 127, 128 Adidas, 249, 250–251 Adobe, 122 Advantica, 110 AES Corporation, 366 AFL-CIO, 413 Airbus Industries, 22 Amazon, 32, 33, 127, 128, 129, 212, 361–362, 444, 452 AMD, 122, 131, 265, 442 American Apparel, 110 American Express, 12 American Greetings, 435, 438 Ameritrade, 127 Amway, 181 AOL, 160 Apple, 3–7, 9, 18, 24, 25, 26, 124, 127, 128, 147, 157, 162, 201, 202, 203, 204, 251, 441 ASDA, 172 Asia Pacific Investment Partners, 300 AstraZeneca International, 411 AT&T, 19, 181, 193, 400, 440, 441, 477 Automatic Data Processing (ADP), 398, 399 Avis, 213 Avon, 223–224 B Babson College, 404 Bank of America, 106, 384 Barclays PLC, 353 BBC, 140 Best Buy, 303, 324 BIC, 200 Bill and Melinda Gates Foundation, 84 Black & Decker, 241 Black Like Me, 340 Blackberry, 9, 25 BMW, 201 Bob Evans Farms, 438 Boeing, 20, 123, 124, 212, 357–358, 428, 449 Borrego Solar Systems, 173 BP Amoco, 213, 367 Brooks Brothers, 237 C Calvert Group, 109 Campbell Soup, 196–198, 201, 204 Canon, 396 Capgemini, 127, 181, 395 Catalyst, 98, 99 Caterpillar, 21, 124, 394 Cedars-Sinai Medical Center, 61–62 Charles Schwab, 127 Chesapeake Energy, 83 Chevron, 110 Children Now, 100 Children’s Choice Learning Center, 104 Chrysler, 134, 160, 217–220, 400 Chubb Group of Insurance Companies, 106 CIA, 39 Cisco Systems, 122, 127, 188, 193, 396, 436, 437 Citibank, 64 CNN, 140 Coca-Cola, 110, 127, 132, 134, 167–168, 185, 200, 204, 205, 213, 395, 396 Colgate, 211 Comcast Cable, 190, 441 Compaq Computer, 160, 287 Copal Partners, 395 Costco, 32–35, 205 Cott Corporation, 185–186, 201, 205 Countrywide Mortgage, 87 Cubist Pharmaceuticals, 384, 385 Cypress Semiconductor, 276, 426 D Daimler, 160 Darden Restaurants, 109 Days Inn, 410 Dell Computer, 8–9, 12, 17, 19, 24, 122, 123, 127, 128, 205, 238, 271, 282, 441, 468 Dial, 209 Dick’s Drive-In Restaurant, 229–230 Direct TV, 293, 294, 441 Dish Network, 292–294 Disney See Walt Disney Company Documentum, 429 Dole Food Company, 411 DreamWorks Studios, 76 DuPont, 19, 112, 167, 212, 214, 248 Dynegy Inc., 352–354 E E & J Gallo Winery, 204 Eastman Kodak, 106, 438 Eaton Corporation, 376 eBay, 129, 267–268 EchoStar, 293 Electronic Arts (EA), 455 Embraer, 22 Empire HealthChoice, 461 Employment Management Association, 109 Employment Policies Institute, 116 ENI, 213 Enron, 72 Enterprise Rent-A-Car, 297–298, 300, 303 Equal Employment Opportunity Commission (EEOC), 391 Ernst & Young, 106, 110, 395, 396 Escape the City, 299–300 ESPN, 140 E*Trade, 127 ExxonMobil, 64 F Fairchild Semiconductor, 287 FatWire Software, 433 FBI, 39 FedEx, 111, 126, 447 FedMart, 33 Fireman’s Fund Insurance, 429, 430 First Global Xpress (FGX), 459–460 Fog Creek Software, 397 Ford Motor Company, 19, 123, 163, 172, 217–220, 241, 259–260, 278, 282, 333, 400, 472–473 Four Seasons, 404, 410 Foxconn, 124 Franklin Motor Company, 38 Frog Design, 327–328 G G D Searle, 122 GarageTek, 155–156 Gateway, 128 General Electric (GE), 7, 18, 21, 145, 189, 209, 212, 448 General Mills, 198 General Motors (GM), 85, 134, 214, 217–220, 244, 284, 400, 431 Giddings and Lewis, 334 Gillette, 210–211 Glaxo-SmithKline, 236, 237 Glaxo Wellcome, 236 Goldman Sachs, 7, 106 Google, 5, 24, 25, 67, 129, 131, 134, 177, 181, 202, 265, 288–289, 317, 441, 444, 477 Gradient Corporation, 319 Great Beginnings, 116 Grind, 182 Guidant, 83 543 544 Company Index H Habitat for Humanity, Habitat International, 102–103 Hagberg Group, 99 Hallmark Cards, 241, 359–360, 362, 369 Hammond’s Candies, 173 Hampton Inns, 410 Harris Interactive, 105 Harvard Business School, 404 HBO, 140 Herman Miller, 427–428 Hewlett-Packard See HP Hilton Hotels, 213 Hissho Iwai, 321 Hitachi, 29 Hoechst, 22 Home Depot, 6, 102, 265 Honda, 249 Honeywell, 430 Houston Independent School District (HISD), 238–239 HP, 9, 12, 19, 24, 127, 128, 160, 287, 394, 436, 443 HTC, 125 Huawei, 125 Hyundai, 219 I IBM, 16, 18, 19, 29, 71, 106, 128, 145– 146, 206, 216, 244, 251, 281, 394, 395, 443, 444, 448 IDEO Product Development, 64–66, 69–71, 378 Igus Inc., 469–470 IKEA, 136–137, 140 ImproveNow.com, 408 Infosurv, 173 InnSeekers, 109 Intel, 6, 122, 127, 131, 188, 202, 265, 439, 442 Intuit, 433 J Jenny Craig, 110 JobLine International, 396 John Deere, 21, 22, 286 Jones Lang LaSalle, 385 JPMorganChase, 7, 106 K Kellogg’s, 210 Ken’s Krew, 102 Ketchum, 429–430 Kimberly-Clark, 385 Kmart, 33 Kodak, 106, 438 Kohl’s, 33 Kraft, 133 Krispy Kreme, 133, 203–204 Kroger’s, 185, 470 L Lands’ End, 140, 212 Leninets Concern, 211 Lenovo, 127 Levi Strauss, 123 LG, 22, 125, 146 Li & Fung, 124, 140 Liberty Media Corporation, 334 Lincoln Electric, 319, 320 LiquidSpace, 182 L.L.Bean, 286 Lockheed Martin, 106, 177 Loft Studio, 98 Louis Vuitton, 365 Lucasfilm, 76 Lucent Technologies, 106 Lundberg Family Farms, 129 M Macy’s, 237, 333 Makani Power, 477 Martha Stewart Living Omnimedia, 58 Marvel Studios, 76 Mary Kay Cosmetics, 403 Matsushita, 205, 210, 211 Mattel, 193, 251 Mazda, 333 McDonald’s, 5, 6, 39, 68, 70–71, 88, 102, 127, 201, 203, 205, 213, 227, 228, 242–244, 402 McKinsey & Co., 251 McNeil Nutritionals, 123 Medtronic, 53 Meijer, 181 Merck, 83, 106 Microsoft, 16, 18, 29, 67, 68, 84, 106, 122, 125–126, 131, 133–134, 137, 177, 256, 265, 281, 390, 394, 395, 444, 455 Midas Muffler, 278 Monster.com, 396 Morton Thiokol, 157, 167, 170 Motorola, 25, 134, 151, 157 MTV, 140 N NAACP, 100 NASA, 157, 167, 170 National Labor Relations Board (NLRB), 412 National Workrights Institute, 385 Natuzzi, 22 Neiman Marcus, 237, 320, 333 Nestlé, 210, 213 Netflix, 452–453 Newell Rubbermaid, 241 NextSpace, 181 Nickelodeon, 340 Nike, 25, 249–250, 251 Nintendo, 147, 455 Nippon Restaurant Enterprise Co., 129 Nokia, 9, 25, 119–120, 125–126, 151, 367 Nordstrom, 333 North American Tool, 61 Nucor, 319, 365–366 NUMMI, 85 O Ogilvy & Mather, 367 Olive Garden, 403 Oracle, 16, 122, 127, 443 P Peer Insight, 417 PepsiCo, 132, 134, 185, 200, 204, 205 Pfizer, 83 P&G See Procter & Gamble (P&G) Pier I Imports, 212, 232–234 Pixar Animation Studios, 76 Plantronics, 181 Price Club, 34 Procter & Gamble (P&G), 46, 126, 200, 206, 211, 212, 214, 286 PwC, 181 Q Quaker Oats, 132 Quaker State, 438 Quantum, 122 R Ram Tool, 58 Raytheon, 106 Re/Max International, 320 Red Lobster, 403, 481 Rock Bottom Restaurants, 362 Rockwell Collins, 318 S S C Johnson & Sons, 106 Salesforce.com, 421–422 Samsung, 5, 22, 25, 125, 127, 146, 147, 151–152, 441 SAP, 127, 251, 448 Company Index Schering, 22 Scottrade, 127 Seagate Technologies, 122 Securities and Exchange Commission (SEC), 86 Senn Delaney, 353 Serendipity Labs, 181 SGI, 444 Shuqualak Lumber, 58 Siemens, 26, 83, 127 SiteDesign, 321 SmithKline Beecham, 236 Sociometric Solutions, 384, 385 Sony, 9, 123, 127, 137, 146–148, 202, 455 Southern California Edison, 106 Southwest Airlines, 96, 246, 458, 459 Starwood Hotels & Resorts, 463–464 Steelcase, 181, 384 Stella & Dot, 313 Subaru of Indiana Automotive (SIA), 56–57 Subway, 228 SumAll, 417 Sun Microsystems, 163–166, 444 T T-Mobile, 344 Taco Bell, 194 Tanenbaum Center for Interreligious Understanding, 101 Target, 33, 251, 278, 470 Tata Motors, 219 Tate & Lyle, 123 Telia, 396 Tenmast Software, 417 Texas A&M University, 68 Texas Instruments (TI), 287 Textron, 209 545 The Container Store, 303 The Gap, 251 The Limited, 212 Thompson, 190 3M, 18, 177, 206–207, 281 Timberland, 207–208 Time Warner, 160 Tokio Marine and Fire Insurance, 321 Toronto-Dominion Bank, 106 Toshiba, 127 Toyota, 85, 137, 200–202, 219, 249, 261, 470, 473 Toyota Motor Sales USA, 100 Trader Joe’s, 10 Tungsram, 145 TWA, 110 Twitter, 181 Tyco, 72, 209 U Under Armour, 45–46 Unilever, 139–140, 210, 211 United Electric Controls, 470–471 United Workers Union, 105 University of Houston, 101 University of Michigan, 404 University of Notre Dame, 101 UnWork.com, 385 UPS, 5, 29, 126, 167, 279, 280, 281, 282, 426, 434 U.S Postal Service, 126 US West, 474 V Valero Energy, 378–379 Value-Act Holdings LP, 256 Verizon, 440 VF Corp., 207–208 Volvo, 333 W Walgreens, 102 Walmart, 6, 25, 32, 33, 39, 70, 102, 126, 172, 185, 193, 205, 251, 279, 280– 281, 282, 440 Walt Disney Company, 7, 68–69, 75–77, 285–286, 402 Western Electric Company, 41 WeWork, 181 Whole Foods, 79–80 Witeck Communications, 105 Wolverine Worldwide, 181 Women’s Policy Research, 116 World Trade Organization (WTO), 139 WorldCom, 72, 83 X Xerox, 18, 19, 286, 477 Y Yahoo, 324–325, 353, 444 Yokohama Tire, 438 Z Zappos, 182, 387–388, 411 Zara, 201–202 Zingerman’s Community of Businesses, 330 Zingerman’s Delicatessen, 330–331 Zynga, 455–456 ... source at www.ShopMcGraw-Hill.com Essentials of Contemporary Management Sixth Edition Gareth R Jones Jennifer M George Rice University ESSENTIALS OF CONTEMPORARY MANAGEMENT, SIXTH EDITION Published... end of the book are considered to be an extension of the copyright page Library of Congress Cataloging-in-Publication Data Jones, Gareth R Essentials of contemporary management/ Gareth R Jones, ... sixth edition of Essentials of Contemporary Management, we continue to focus on providing the most up-to-date account of the changes taking place in the world of management and management practices