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Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson Tài liệu Management 6th asia pacific edtion by davidson
SCHERMERHORN | DAVIDSON | FACTOR | WOODS | SIMON | MCBARRON management 6th Asia–Pacific edition John Schermerhorn, Paul Davidson, Aharon Factor, Peter Woods, Alan Simon, Ellen McBarron Management 6TH ASIA – PACIFIC EDITION John R Schermerhorn Paul Davidson Aharon Factor David Poole Peter Woods Alan Simon Ellen McBarron Sixth edition published 2017 by John Wiley & Sons Australia, Ltd 42 McDougall Street, Milton Qld 4064 Typeset in 10/12pt Times LT Std Australian editions © John Wiley & Sons Australia, Ltd 2004, 2006, 2008, 2011, 2014, 2017 Authorised adaptation of Management (ISBN 978 471 43570 9), published by John Wiley & Sons, Inc., New York, United States of America Copyright © 2002 in the United States of America by John Wiley & Sons Inc All rights reserved The moral rights of the authors have been asserted National Library of Australia Cataloguing-in-Publication entry Title: Management/ John R Schermerhorn Jr . . . [et al.] Edition: 6th Asia–Pacific edition ISBN: 9780730329534 (ebook) Subjects: Management — Asia Management — Pacific Area Other Authors/ Contributors: Davidson, Paul, author Factor, Aharon, author Woods, Peter, author Simon, Alan, author McBarron, Ellen, author Dewey Number: 658.0095 Reproduction and communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this work or — where this book is divided into chapters — one chapter, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) Reproduction and communication for other purposes Except as permitted under the Act (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission All inquiries should be made to the publisher Every effort has been made to trace the ownership of copyright material Information that will enable the publisher to rectify any error or omission in subsequent editions will be welcome In such cases, please contact the Permissions Section of John Wiley & Sons Australia, Ltd Cover image: © Pawel Papis/Shutterstock.com Typeset in India by Aptara 10 9 8 7 6 5 4 3 2 1 CONTENTS About the authors xi Applications at a glance xiv CHAPTER The contemporary workplace 1 Managing the fresh food people Introduction 3 1.1 Working in today’s economy Intellectual capital Globalisation 4 Technology 5 Diversity 6 Ethics 8 Careers 8 1.2 Organisations in today’s workplace What is an organisation? 10 Organisations as systems 10 Organisational performance 11 The changing nature of organisations 12 1.3 Managers in today’s workplace 13 The organisational environment and the manager 13 What is a manager? 16 Managerial performance 18 Changing nature of managerial work 19 1.4 The management process 20 Functions of management 21 Managerial activities and roles 23 Managerial agendas and networks 24 1.5 Managerial learning 25 Essential managerial skills 26 Skill and outcome assessment 27 Summary 28 Key terms 29 Applied activities 30 Endnotes 30 Acknowledgements 32 CHAPTER Historical foundations of management 33 Looking back to look forward 34 Introduction 36 2.1 Classical approaches to management 36 Scientific management 36 Administrative management 38 Bureaucratic management 40 Hierarchy in organisations 41 2.2 Behavioural approaches to management 41 The Hawthorne Studies and human relations 42 Relay assembly test‐room studies 42 Employee attitudes, interpersonal relations and group processes 42 Lessons from the Hawthorne Studies 42 Maslow’s theory of human needs 43 McGregor’s Theory X and Theory Y 44 2.3 Quantitative approaches to management 45 Management science 45 Quantitative analysis today 45 2.4 Modern approaches to management 46 Systems thinking 46 Contingency thinking 47 2.5 Continuing management themes 48 Quality and performance excellence 48 Global awareness 49 Learning organisations 49 Looking ahead 51 Summary 54 Key terms 55 Applied activities 55 Endnotes 55 Acknowledgements 57 CHAPTER Environment and diversity 58 Australia a diverse country but older workers still struggle to find employment 59 Introduction 60 3.1 Environment and competitive advantage 61 What is competitive advantage? 61 The general environment 62 The specific environment 65 Environmental uncertainty 65 3.2 Internal environment and organisational culture 67 What strong cultures do 67 Levels of organisational culture 68 Leadership and organisational culture 69 3.3 Customer‐driven organisations 70 Who are the customers? 70 What customers want 70 Customer relationship management 71 3.4 Quality‐driven organisations 72 Total quality management 72 Quality and continuous improvement 73 Quality, technology and design 74 3.5 Diversity and multicultural organisations 75 What is a multicultural organisation? 75 Organisational subcultures 75 Challenges faced by minority groups and women 76 Managing diversity 80 Summary 83 Key terms 84 Applied activities 85 Endnotes 85 Acknowledgements 88 CHAPTER International dimensions of management 89 Selling out Australia 90 Introduction 91 4.1 International management and globalisation 92 Asia and the Pacific Rim 93 Europe 95 The Americas 98 Africa 98 4.2 International business challenges 99 Competitive global business environment 99 Forms of international business 100 4.3 Multinational corporations 103 Types of multinational corporations 103 Pros and cons of multinational corporations 104 Ethical issues for multinational operations 105 4.4 Culture and global diversity 106 Popular dimensions of culture 106 Values and national cultures 108 Understanding cultural diversity 109 4.5 Management across cultures 111 Planning and controlling 111 Organising and leading 112 Are management theories universal? 113 Global organisational learning 114 Summary 116 Key terms 117 Applied activities 118 Endnotes 118 Acknowledgements 121 iv CONTENTS CHAPTER Ethical behaviour and social responsibility 122 Taking corporate social responsibility to the next level 123 Introduction 124 5.1 What is ethical behaviour? 125 Law, values and ethical behaviour 125 Alternative views of ethical behaviour 126 Cultural issues in ethical behaviour 128 5.2 Ethics in the workplace 129 What is an ethical dilemma? 129 Ethical problems faced by managers 129 Rationalisations for unethical behaviour 130 Factors influencing ethical behaviour 131 5.3 Maintaining high ethical standards 133 Ethics training 133 Whistleblower protection 134 Ethical role models 134 Codes of ethics 135 5.4 Social responsibility 135 Stakeholder issues and practices 136 Perspectives on social responsibility 138 Evaluating social performance 139 Social responsibility strategies 140 5.5 Organisations and society 142 How government influences organisations 142 How organisations influence government 143 Why managers make the difference 144 Summary 145 Key terms 146 Applied activities 146 Endnotes 147 Acknowledgements 150 CHAPTER Sustainability 151 Are you pouring money down the drain? 152 Introduction 153 6.1 What is sustainability? 153 Defining sustainability 154 Why sustainability? 154 Energy and the natural environment 156 Social justice 157 The business case 158 6.2 International sustainability guidelines for business 158 The UN Global Compact 159 The Millennium Development Goals 160 The Sustainable Development Goals 161 6.3 Sustainability and organisations 162 Shared value 162 Model of the sustainable business organisation 163 Corporate governance 163 Circular economy 164 6.4 Organisational change: developing the sustainable firm 164 Incremental change 165 Sustainability reporting 165 The bottom of the pyramid 166 6.5 Current trends in business sustainability 166 Waves of change in the business environment 167 Rio+20 Corporate Sustainability Forum 167 Summary 169 Key terms 169 Applied activities 170 Endnotes 170 Acknowledgements 173 CHAPTER Information and decision making 174 Where we are on the road to driverless cars 175 Destination: autonomy 175 Getting behind the wheel 175 Introduction 176 7.1 Information technology and the new workplace 177 Work and the virtual office 177 How information technology is changing organisations 178 How information technology is changing business 180 7.2 Information and information systems 181 What is useful information? 181 Information needs of organisations 181 Developments in information systems 183 Decision support systems 183 Information systems and the manager’s job 185 7.3 Information and decision making 187 Types of managerial decisions 187 Decision conditions 188 How managers approach decisions 188 7.4 The decision‐making process 189 Steps in decision‐making 190 Behavioural influences on decision‐making 192 Individual and group decision‐making 194 Ethical decision‐making 195 7.5 Knowledge management and organisational learning 195 What is knowledge management? 195 Organisational learning 196 Summary 197 Key terms 198 Applied activities 199 Endnotes 199 Acknowledgements 200 CHAPTER Planning 201 Planning for Port Shorts 202 Introduction 203 8.1 How and why managers plan 204 Importance of planning 205 The planning process 207 8.2 Types of plans used by managers 209 Short‐range and long‐range plans 209 Strategic and tactical plans 210 Policies and procedures 211 Budgets and project schedules 212 8.3 Planning tools, techniques and processes 212 Forecasting 213 Contingency planning 213 Scenario planning and contingency planning 214 Benchmarking 217 Staff planners 218 Management by objectives 218 Participation and involvement 219 Summary 221 Key terms 221 Applied activities 222 Endnotes 222 Acknowledgements 223 CHAPTER Strategic management 224 Rise of the new tech companies 225 Introduction 226 9.1 Sustainable strategic competitiveness 226 What is organisational strategy? 227 Strategic management 228 Strategic management goals 228 9.2 The strategic management process 231 Analysis of mission, values and objectives 232 CONTENTS v Analysis of organisational resources and capabilities 234 Analysis of industry and environment 234 9.3 Strategies used by organisations 237 Levels of strategy 237 Growth and diversification strategies 238 Restructuring and divestiture strategies 240 Cooperation in business strategies 240 E‐business strategies 241 9.4 Strategy formulation 242 Porter’s generic strategies 243 Product life cycle planning 244 Portfolio planning 246 Adaptive strategies 248 Incrementalism and emergent strategy 248 9.5 Strategy implementation 249 Management practices and systems 249 Corporate governance 249 Strategic leadership 250 Summary 251 Key terms 252 Applied activities 253 Endnotes 253 Acknowledgements 255 CHAPTER 10 Organising 256 The ‘no manager’ company: how does it work? 257 Introduction 258 10.1 Organising as a management function 258 What is organisational structure? 259 Formal structure 259 Informal structure 260 10.2 Traditional organisation structures 261 Functional structures 261 Divisional structures 262 Matrix structures 264 10.3 Essentials of organisational design 266 Bureaucratic designs 266 Adaptive designs 269 Virtual designs 270 10.4 Contingencies in organisational design 271 Environment 271 Strategy 272 Size and life cycle 272 Human resources 273 10.5 Developments in organisation structures 274 vi CONTENTS Team structures 275 Network structures 276 10.6 Subsystems design and integration 278 Subsystem differences 278 How to achieve integration 279 10.7 Organising trends 281 Shorter chains of command 281 Less unity of command 281 Wider spans of control 282 More delegation and empowerment 282 Decentralisation with centralisation 283 Summary 285 Key terms 286 Applied activities 287 Endnotes 287 Acknowledgements 290 CHAPTER 11 Controlling 291 Relying on quality to bring control 292 Introduction 293 11.1 Organisational control 294 Rationale for controlling 294 Steps in the control process 295 11.2 Types of controls 298 Feedforward controls 298 Concurrent controls 298 Feedback controls 299 Internal and external control 300 11.3 Organisational control systems 301 Remuneration and benefits 301 Employee discipline systems 302 Information and financial controls 303 Operations management and control 304 Project management and control 306 Balanced scorecards 307 MBO: integrated planning and controlling 308 Summary 309 Key terms 309 Applied activities 310 Endnotes 310 Acknowledgements 311 CHAPTER 12 Human resource management 312 Others can learn from the ways tech firms find and keep staff 313 Ways of managing 313 Communication and culture 313 Treating each other well reaps benefits 313 Introduction 314 12.1 Diversity and the importance of people 315 Why people make the difference 316 The diversity advantage 316 12.2 HRM 318 Employment discrimination 318 Occupational health and safety 321 Industrial relations in the Asia–Pacific region 323 International HRM 325 The HRM process 326 Strategic HRM 326 12.3 Attracting a quality workforce 327 The recruiting process 328 Making selection decisions 330 12.4 Developing a quality workforce 333 Employee orientation 333 Training and development 334 Performance management systems 335 Purpose of performance appraisal 335 12.5 Engagement: maintaining a quality workforce 338 Career development 339 Work–life balance 340 Remuneration and benefits 342 Retention and turnover 343 Summary 345 Key terms 346 Applied activities 347 Endnotes 347 Acknowledgements 350 CHAPTER 13 Leading 351 Traits of an ethical leader 352 The personality to defy groupthink 352 The ability to set a good example 352 Selflessness 352 Their door is always open 352 They’re not afraid to be challenged 352 They take responsibility for everything 353 Introduction 353 13.1 The nature of leadership 354 Leadership and vision 355 Power and influence 355 Ethics and the limits to power 357 Leadership and empowerment 357 13.2 Leadership traits and behaviours 358 Search for leadership traits 358 Focus on leadership behaviours 359 13.3 Contingency approaches to leadership 361 Fiedler’s contingency model 362 Hersey–Blanchard situational leadership model 363 House’s path–goal leadership theory 364 Vroom–Jago leader‐participation model 365 13.4 Issues in leadership development 367 Transformational leadership 367 Emotional intelligence 369 Gender and leadership 370 Drucker’s ‘old‐fashioned’ leadership 370 Moral leadership 371 Summary 373 Key terms 374 Applied activities 374 Endnotes 375 Acknowledgements 377 CHAPTER 14 Communication and interpersonal skills 378 Communication in a digital age 379 Introduction 380 14.1 The communication process 380 What is effective communication? 380 Persuasion and credibility in communication 381 Barriers to effective communication 382 14.2 Improving communication 385 Transparency and openness 385 Active listening 385 Body language 386 Constructive feedback 387 Use of communication channels 387 Proxemics and space design 389 Technology use 390 Valuing culture and diversity 392 Language and organisational change 392 14.3 Perception 393 Perception and attribution 394 Perceptual tendencies and distortions 394 14.4 Communication and conflict management 396 Consequences of conflict 396 Causes of conflict 397 How to deal with conflict 397 Conflict management styles 398 Structural approaches to conflict management 399 CONTENTS vii 14.5 Negotiation 400 Negotiation goals and approaches 400 Gaining integrative agreements 401 Avoiding negotiation pitfalls 402 Cross‐cultural negotiation 403 Ethical issues in negotiation 403 Summary 404 Key terms 405 Applied activities 406 Endnotes 406 Acknowledgements 408 CHAPTER 15 Motivation and rewards 409 Culture Amp pioneers employee share options 410 Introduction 411 15.1 What is motivation? 411 Motivation and rewards 411 Rewards and performance 412 15.2 Content theories of motivation 413 Hierarchy of needs theory 414 ERG theory 415 Two‐factor theory 415 Acquired needs theory 416 Questions and answers on content theories 417 15.3 Process theories of motivation 419 Equity theory 419 Expectancy theory 420 Goal‐setting theory 421 Self‐efficacy theory 423 15.4 Reinforcement theory of motivation 424 Reinforcement strategies 424 Positive reinforcement 425 Punishment 426 Ethical issues in reinforcement 426 15.5 Motivation and remuneration 427 Pay for performance 428 Incentive remuneration systems 430 Summary 433 Key terms 434 Applied activities 434 Endnotes 435 Acknowledgements 437 CHAPTER 16 Individuals, job design and stress 438 IBM and NAB introduce ‘mindfulness’ among staff 439 viii CONTENTS Introduction 440 16.1 The meaning of work 441 Psychological contracts 441 Work and the quality of life 442 16.2 Satisfaction, performance and job design 444 Job satisfaction 444 Individual performance 446 Job design alternatives 448 16.3 Directions in job enrichment 451 Core characteristics model 451 Technology and job enrichment 454 Questions and answers on job enrichment 454 16.4 Alternative work arrangements 454 The compressed work week 455 Flexible working hours 455 Job sharing 456 Telecommuting 456 Part‐time and casual work 458 16.5 Job stress 460 Sources of stress 460 Consequences of stress 462 Stress management strategies 464 Summary 466 Key terms 467 Applied activities 467 Endnotes 468 Acknowledgements 470 CHAPTER 17 Teams and teamwork 471 Telstra and Cisco create a new approach to teamwork 472 Introduction 473 17.1 Teams in organisations 473 Challenges of teamwork 473 Synergy and the usefulness of teams 474 Formal and informal groups 475 17.2 Trends in the use of teams 476 Committees 476 Project teams and task forces 476 Cross‐functional teams 477 Employee involvement teams 477 Virtual teams 477 International teams 479 Self‐managing work teams 479 17.3 Team processes and diversity 482 What is an effective team? 482 Stages of team development 485 Norms and cohesiveness 487 www.downloadslide.net of the four approved flood engineers and their oral evidence.5 Clearly, over the last decade the water engineers working for south-east Queensland water authorities have learnt to manage the infrastructure at both ends of the climate spectrum During the long periods of drought, they learnt to manage dwindling water supplies across the region and advised government on the strategies that could be used to guarantee water supplies should the drought continue into the future To this, they would have used a range of rainfall and water use patterns to develop and analyse the different scenarios They would have then advised the relevant government and water supply agencies about water restriction policies and their implementation They would have also managed decreasing water levels and the large tracts of land that emerged as water levels dropped in Wivenhoe and other dams In late 2010, the system moved to the other extreme, and the management focus switched from water supply to flood mitigation In the first week of January 2011, the Wivenhoe operations team were managing a system that had reached critical levels John Truman, national president of the Institute of Public Works Engineering Australia, highlighted the lessons that could be learnt from the many flood events that occurred over the 2010–11 summer: The scale of these events will provide many lessons and new information These lessons will be at each of the individual local areas that have been affected and they will also be at the broader engineering profession level where standards and policies will need to be reviewed.6 The management of Wivenhoe Dam during the south-east Queensland floods demonstrates the importance of accurate information in the workplace Generally, good decisions are consultative decisions, but when is consultation finite, and who decides that? For example, former Queensland Water Minister Stephen Robertson was briefed in October 2010 by the Bureau of Meteorology that the impending wet season would be ‘unusually intense’ He then sought advice from the water grid manager, who had no direct role in managing the dams — but not from the government department responsible for flood mitigation and dam safety In March 2012, the CASE STUDY 8 609 www.downloadslide.net Flood Commission handed down its findings, which included a recommendation that the Crime and Misconduct Commission (CMC) investigate the conduct of the dam operators.7 In August 2012, the CMC ruled that the engineers concerned had, in fact, acted appropriately in the stressful situation The Commission also found that some of the information presented in the dam’s operating manual was contradictory, which meant that there was little evidence of misconduct by the engineers themselves.8 This presents a perfect example of the importance of clear, consistent and accurate information in the workplace, which serves to aid the decision-making processes of both staff and management.9 QUESTIONS What information sources (or potential information sources) could have been used to assist with the decisionmaking process for Wivenhoe Dam in this case? With reference to decision-making theory covered in the chapter, describe the type of managerial decisionmaking evident in this case, and the conditions under which decisions were made Evaluate the decisions made in the case in relation to the classical, behavioural and judgemental heuristics approaches to decision-making that are outlined in the chapter Which model you believe best describes the situation and subsequent decision-making process in this case? Justify your answer ENDNOTES SEQWater, Historical dam levels, www.seqwater.com.au/public/dam-levels Queensland Floods Commission of Inquiry, Interim Report (2011), p 39; see www.floodcommission.qld.gov.au See SEQWater, op cit H Thomas, ‘The Great Avoidable Flood: An Inquiry’s Challenge’, The Australian (22 January 2011), www.theaustralian.com.au Queensland Floods Commission of Inquiry, Final Report (2012); see www.floodcommission.qld.gov.au Engineers Australia, ‘Learning from the floods’, Engineers Australia Magazine, Civil Edition (February 2011), pp 30–1 See Queensland Floods Commission of Inquiry (2011 and 2012) Bridie Jabour, ‘CMC Clears Wivenhoe Dam Engineers’, Brisbane Times (21 August 2012), www.brisbanetimes.com.au This case study was adapted from David Dowling, Anna Carew and Roger Hadgraft, ‘Self-Management: Introduction’, Engineering Your Future: An Australasian Guide, 2nd edn (Milton: John Wiley & Sons, 2012); and Jack Wood, Rachid Zeffane, Michele Fromholtz, Retha Wiesner, Rachel Morrison and Pi-Shen Seet, ‘Dealing With a Flood of Decisions, Organisational Behaviour, 3rd Australasian edn (Milton: John Wiley & Sons, 2012) ACKNOWLEDGEMENT Photo: © Markus Gebauer / Shutterstock.com 610 Management www.downloadslide.net CASE STUDY Scenario planning at Royal Dutch Shell On 16 October 1973, a great oil crisis began when Organization of Petroleum Exporting Countries (OPEC) raised the price of oil by 70 per cent and reduced production This was in response to the decision by the United States to re-supply the Israeli military during the Yom Kippur war, lasting until March 1974 As a consequence, the market price of oil rose substantially — from $3 a barrel to $12 The trend of recessions and high inflation in the world financial systems until the 1980s meant that the price of oil continued to increase until 1986.1 This, according to Shell, meant that ‘An era of cheap energy had come to an end and oil was no longer a buyer’s market’.2 However, when the oil shock came in October 1973 after the Yom Kippur war, Shell was the only oil major prepared for it In the early 1970s, Pierre Wack was a planner in Royal Dutch Shell in London, and had calculated the impact of a possible rise in the oil price and a likely increase in the world’s appetite for oil He and his colleagues had mapped out a scenario in which the OPEC demanded much higher prices for their oil following the 1967 Arab–Israel six-day war In effect, Shell’s managers were able to plan for this eventuality and apply this planning to the crisis following the Yom Kippur war while other oil companies struggled.3 In order to survive, Shell adopted a policy of diversification, branching out into the areas of coal, nuclear power and metals Firstly, in 1970 Shell purchased Billiton, an established metals mining company (which it later sold) In 1973, the company moved into nuclear power by forming a partnership with Gulf Oil to manufacture gas-cooled reactors and their fuels Shell’s success in coal was limited In the 1970s, the company also continued its work in developing the oil fields in the North Sea While a huge investment was required due to the adverse weather conditions and the instability of the sea bed, the cost was justified due to the sheer size of the oil fields in the North Sea, as well as the fact that supply from the Middle East was reduced at the time.4 Royal Dutch Shell became a leader in profitability, and continues to use scenario planning as an aid to opportunity-framing and strategy formulation.5 With the world making commendable efforts to limit its consumption of fossil fuels in the face of ‘peak oil’ (the time when demand exceeds supply) and increasing its reliance on wind and solar power, the long-established ‘legacy expectations’ of enduring access to easily accessible oil remain stubbornly fixed in the minds of both developed and developing nations Scenario planning is using careful research inputs to examine the prejudices of policy-makers and the demands of populations to arrive at sustainable solutions to energy needs, and to avoid the catastrophe of a war over oil Is such a crisis likely, or even possible? Consider the following somewhat less conservative analysis Firstly, we know that drilling for oil in shallow seas is much safer and less technologically difficult (and, therefore, less expensive) than deepwater drilling When, in 2010, the BP Macondo Deepwater Horizon oil well off the coast of Louisiana blew out and spilled many thousands of litres of oil into the Gulf of Mexico each day for months before it could be shut down, it created the greatest environmental disaster in the history of the United States An immediate two-year ban on deep-sea drilling in the US gave BP a chance to clear up the damage, although it cost the CEO his job and many people along the Louisiana coast their livelihoods, as their businesses failed amidst the massive pollution Some say that one failure out of the 5000 wells in the Gulf is not an unacceptable risk, but the Macondo rig was one of the most advanced platforms, operating at the depth limits of deepwater exploration and extraction Only about 40 other platforms were so complex Critics respond that odds like that encourage a much more cautious regulation to manage the risks involved In spite of this, oil companies are embarking on ever more challenging projects, drilling in the Arctic, Russia and the deep waters off Africa.6 Secondly, in the years since Macondo exploded, public opinion has moved towards more opposition to deep drilling, along with a general push to limit carbon emissions and oil consumption Our motor CASE STUDY 9 611 www.downloadslide.net vehicles are increasingly powered by smaller, more efficient engines, and automobile manufacturers care — committing research and production resources to hybrid power systems and electric propulsion The constraints of battery technology are gradually being reduced Shell uses scenario planning as an aid to opportunity-framing and strategy formulation Thirdly, the discovery of vast reserves of coal seam gas in Australia, China and other countries, plus the development of commercially viable technology to extract oil from shale deposits in the US and Canada, is causing a reassessment of the global energy situation Remarkably, some observers believe that by 2050 the US could be a net exporter of oil — something unanticipated just a few years ago Alternative sources such as solar and wind power are increasingly attractive to many governments, as profound suspicion about nuclear power in the years after the Fukushima earthquake and tsunami disaster has prompted the shutdown of many nuclear plants worldwide Where does this leave us? QUESTIONS If you were a regulator responsible for planning your government’s energy policy, how would you decide on your priorities? Safety and environmental sustainability would loom large as principles guiding your planning, but what else? To keep all the variables in play, is there likely to be any better planning approach than scenario planning? What other planning approach might you investigate? In relation to energy planning, can you compare scenario planning with contingency planning? Which you think is most useful, and why? The global agreement on the reduction of climate change forged in Paris in late 2015 carries with it the responsibility for all participant countries to plan their future energy generation and usage carefully What are the obvious questions that will need to be asked at organisation, community and government levels? How will an organisation begin to contemplate the management of its planning process in relation to climate change and sustainability? 612 Management www.downloadslide.net ENDNOTES Daniel Yergin, The Prize: The Epic Quest for Oil, Money, and Power (New York: Simon and Schuster, 2008), p 587; David Frum, How We Got Here: The ’70s (New York: Basic Books, 2000), p 318 ‘The 1960s to the 1980s’, Our History, Shell website, www.shell.com P J H Schoemaker and C A J M Van der Heijden, ‘Integrating Scenarios into Strategic Planning at Royal Dutch Shell’, Planning Review, vol 20 (1992), pp 41–6 ‘The 1960s to the 1980s’, Our History, Shell website, www.shell.com J Van der Veer, 1ntroduction to Shell Global Scenarios to 2025 (London: Royal Dutch Shell, 2007) Jamie Grierson, ‘BP Still Paying for Gulf of Mexico Oil Spill’, The Independent (31 July 2012), www.independent.co.uk; Sarah Jane Tasker, ‘BP CEO Tony Hayward to Step Down: Report’, The Australian (21 July 2010), www.theaustraliancom au; Guy Chazan, ‘Louisiana Oil Spill Threatens Turnaround Efforts by BP CEO Tony Hasker’, The Australian (3 May 2010), www.theaustralian.com.au ACKNOWLEDGEMENT Photo: © Nightman1965 / Shutterstock.com CASE STUDY 9 613 www.downloadslide.net CASE STUDY 10 Sick leave costing employers Sick leave is leave that employees can take when they can’t attend work because they are sick or injured; however, the Australian ‘sickie’ originally in work agreements to protect sick workers from pay reduction has turned into a national pastime without any consequences for the impact that this theft has on business Stealing time that you are not entitled to — the sickie — is so entrenched in the work culture in Australia that it is seen as an entitlement Employers struggle with the fine line of trust and betrayal Should employees need to produce a doctor’s certificate for a missed day? This puts considerable pressure on the health system for what could be a genuine sickness — say, a migraine that only needs sleep and medication Is this a deterrent for workers if they have to spend half their day going to the doctor? According to a 2016 survey by Clipp, Australia Day is the most popular day of the year to take a sickie.1 In fact, Australia Day in 2016 was projected to cost employers $62 million, as workers gave themselves an unofficial long weekend ahead of the Tuesday public holiday It was estimated that more than 180 000 people nationwide were expected to dial in a sickie.2 A lack of flexibility in an organisation can cause an increase in the sick leave rate An employee requesting two hours to go to the dentist reflects a need, and the time can be made up if permitted by managers However, refusing this request could result in a full day off and the lost productivity that entails A 2015 Direct Health Solutions survey of 97 organisations, that employ 220 000 employees across Australia, found that Monday was the most popular days for employees to call in sick, with a whopping 40 per cent of sick days falling on a Monday.3 The same survey estimated that ‘sickies’ are costing Australian businesses $32.5 billion a year — which equates to an average of $347 per day per employee Paul Dundon from Direct Health Solutions says that 6.5 days of sick leave absenteeism each year is an acceptable level; however, Australians are currently clocking up an average of 8.6 days per year One mid-career consultant from a big-name firm said she took ‘sickies’ that were really ‘stress leave’, but had never been quizzed over them ‘I don’t think you’re allowed but I take them’, she says ‘I think it makes up for the fact that people heaps of overtime It’s overlooked if they are a bit flexible with their interpretation of sick leave.’ She said sickies in the corporate world were not a big issue, and that the most she had seen taken was when she was working as a retail assistant ‘People just don’t show up They don’t even get paid for it Maybe it’s correlated to how dreadful your job is.’ Dundon says that an average of one in every forty workers is off sick on any given day Conversely, in some organisations, it can be common for staff to take no, or very few, sick days Often this is because employees feel that their work is so urgent that they can’t contemplate having a day off — even when they are genuinely sick Dundon’s company offered absentee management, whereby staff are required to phone a call centre and talk to a nurse rather than phoning in to their immediate manager It is claimed that this has halved the levels of absenteeism for some of his clients, as ‘People taking a sickie are more reluctant to fake it to a kindly nurse on the other end of the phone line’ The national president of the Australian Human Resources Institute, Peter Wilson, says that a high level of absenteeism can indicate that something is not quite right in an organisation — such as ‘industrial unrest, job insecurity and redundancies, and bad job design’ Mary Wyatt, an occupational physician and manager of Return to Work Matters, says sickness absence comes down to management by individual organisations She says workers’ perceptions of how they are treated by management can be an indicator of the likelihood of large amounts of sick leave — as is having a large number of workers doing the same thing (such as working on a factory line or in a call centre).4 614 Management www.downloadslide.net However, sickies are not only an Australian phenomenon; unauthorised absenteeism occurs internationally Asia and Africa have the lowest rates of absenteeism, whereas the United States and Western European countries such as Germany and France have the highest rates, with Australia and New Zealand falling in the middle.5 Caring for (sick) family members and worker job dissatisfaction are cited by most workers as the main causes of absenteeism Some reasons for taking a sickie are far less obvious; for example, an Air New Zealand employee was sacked because she took a sick day to see a Robbie Williams concert She would not have been caught had she not flown from Auckland to Wellington using her staff discount on the airfare.6 In some countries, legislation supports an employer’s right to request a medical certificate for the purpose of establishing the genuineness of an application for paid sick leave — even for a single sick day.7 However, organisational psychologist Dr Peter Cotton asserts that everyone, at some stage, wakes up in the morning and just doesn’t feel like going to work, for a variety of reasons Cotton’s belief is that employers should sanction ‘doona days’ twice a year so that, for those rare mornings, employees can just put the doona back over their head and not go into work The belief is that this will help to reduce stress, particularly in an era where up to 20 per cent of workers in Australia and New Zealand work more than 50 hours per week.8 QUESTIONS Do you take sickies? Why or why not? Would your perspective change as a manager, as opposed to being an employee? Many organisations have very generous leave plans for their employees Do you think that this approach will ultimately reduce the abuse of sick leave? How you counter your employee’s statement, ‘It’s part of the Australian culture’? What approaches could managers take to reduce a high sick leave cost to the bottom line? CASE STUDY 10 615 www.downloadslide.net ENDNOTES Ronelle Richards, ‘Why Australia Day is a favourite for pulling sickies’, Smart Company, (21 January 2016), www.smartcompany.com.au Marissa Calligeros and Nick Toscano, ‘Nearly 200,000 expected to chuck a sickie on Monday before Australia Day’, The Sydney Morning Herald (21 January 2016), www.smh.com.au ibid Jason Murphy, Fiona Smith and Peter Roberts, ‘Absenteeism Reflects Sick Organisation’, Australian Financial Review (7 February 2012), www.afr.com See www.cch.com.au ‘Sick worker went to concert’, Dominion Post (9 November 2002), p A20 For example, Workplace Relations Act 1996 (Cth), Schedule 1A, 1C (1) in Australia.C; Larmer, ‘Doona days’, Sunday Telegraph (8 May 2005), p. 2; part of this case study was adapted from chapter of Jack Wood, Rachid Zeffane, Michele Fromholtz, Retha Wiesner, Rachel Morrison and Pi-Shen Seet, Organisational Behaviour, 3rd edition (Brisbane: John Wiley & Sons, 2012), p 65 ibid ACKNOWLEDGEMENT Photo: © luckyraccoon / Shutterstock.com 616 Management www.downloadslide.net CASE STUDY 11 Twitter — rewriting (or killing) communication? Twitter’s 140-character text-based messages, or ‘Twitter-speak’, permeate everyday life But questions about its influence are being asked — by parents, relationship partners, teachers and employers Is Twitter reinventing social communication or just abbreviating it? Do tweets create meaningful conversations or dumb down our abilities to write and communicate effectively, and respectfully, with one another? Twitter was conceived on a playground slide during a burrito-fuelled brainstorming session by employees of podcasting company Odeo Co-founder Jack Dorsey, now Twitter’s CEO, suggested the idea of using short, SMS-like messages to connect with a small group ‘[W]e came across the word twitter, and it was just perfect,’ Dorsey said ‘The definition was “a short burst of inconsequential information” and “chirps from birds.” And that’s exactly what the product was.’1 Dorsey, also CEO and founder of Square, a mobile payments company, developed a working prototype based on an instant messaging platform It was first used internally by Odeo employees, but was refined and released to the public Within three months and sensing the magnitude of the invention, Dorsey and other members of Odeo, including product strategist Evan Williams and creative director Biz Stone, acquired Odeo and picked up Twitter.com in the process A channel with capacity Twitter has become a vehicle for communicating carefully crafted messages of self-promotion and branding by major companies, not-for-profits, activist groups, politicians, actors, athletes, musicians and media personalities Top Twitter topics or ‘trends’ driving tweets include sports, politics and music as well as natural disasters, human conflicts and crises According to an internet study by Pew Research, Twitter usage is pervasive among technology early adopters and widespread among a range of demographic groups.2 Messages with(out) meanings Twitter’s 140-character limit keeps messages terse and to the point However, there’s no guarantee they’ll be pertinent or that each message will be meaningful Market research firm Pear Analytics analysed 2000 tweets sent during daytime hours over two weeks and concluded that 40 per cent of them represented ‘pointless babble’.3 While avid Twitter users may agree that not all tweets are gems, the service has found a place in digital culture Social network researcher Danah Boyd has criticised Pear Analytics’ results, pointing out that pointless babble could be better characterised as social grooming, where tweeters ‘want to know what the people around them are thinking and doing and feeling’.4 Tweets travel faster Twitter’s low overhead translates into instantaneous broadcast communication And for some users, that’s part of the appeal ‘Twitter lets me hear from a lot of people in a very short period of time,’ says tech evangelist Robert Scoble.5 In addition, Twitter has become a de facto emergency broadcast network for breaking news It is a means to transmit up-to-date information during disasters and other unfolding situations.6 Real-time news, video clips and images rapidly spread through the ‘Twitterverse’, often providing faster information than formal news media.7 More managers are using Twitter and it’s becoming essential for teams, whose leaders and members use it as a fast-channel way to send announcements about upcoming events, post rapid-response items and share links that bear on what’s happening within the organisation Twitter is also being used in educational settings as a way to promote student interactions with faculty and administration and with one another CASE STUDY 11 617 www.downloadslide.net Impulse leads to apology Twitter’s quick and short messages are shortening the stages of communication — quick thoughts warrant a tweet They’re increasing the frequency of communication — more time efficient than a direct message or an email But, it’s not uncommon for well-known tweeters to apologise and explain a tweet or two after it was misinterpreted The immediacy of tweeting can make it impulsive communication — tweets are so easy to send out — and regret later Trolls Twitter has a problem with abuse that has long attracted headlines ‘Trolls’, those who post deliberately inflammatory messages on Twitter or other online platforms in order to incite a reaction, are often not held accountable for what they write on Twitter, as users can choose to remain anonymous Facebook has a real-name policy, and as such, it is easier to hold users accountable for their content.8 In one case of online behaviour having real-life ramifications, Australian feminist writer Clementine Ford posted a screenshot of a vile Facebook message she had received from troll Michael Nolan, tagging Meriton Apartments, who he’d listed on his profile as his employer, in the post Nolan was subsequently fired from his job.9 Dick Costolo, who was the CEO of Twitter up until 2015, wrote in an internal memo that was leaked to tech website The Verge, ‘we suck at dealing with abuse and trolls on the platform and we’ve sucked at it for years’.10 In early 2016 however, Twitter announced the formation of the Twitter Trust and Safety Council, ‘to ensure that people feel safe expressing themselves on Twitter’.11 QUESTIONS What are the advantages and disadvantages of communicating via Twitter? Can a 140-character tweet really be effective? What guidelines would you recommend for maximising the effectiveness of a tweet? Choose a national brand or entertainment personality and discuss how the use of Twitter has helped to create a following and desired brand image How about a university course? How could a lecturer use Twitter to 618 Management www.downloadslide.net improve the in-class or online learning experience? Is Twitter more appropriate for the national brand and entertainment personality than for an academic instructor? Why or why not? You’ve been given a first assignment as the new intern in the office of a corporate CEO The task is to analyse Twitter and make a presentation to the CEO and her executive team recommending whether or not it should be used for corporate purposes What points will you make in the presentation to summarise its potential uses, possible downsides and overall strategic value to the firm? Research current developments with Twitter’s Trust and Safety Council What are the actions the council is taking to combat abuse? Has this resulted in decreased levels of trolling on the platform? ENDNOTES Lauren Duggan, ‘Twitter to Surpass 500 Million Registered Users’, Media Bistro (21 February 2012), mediabistro.com Pew Research, ‘The Demographics of Twitter Users’, Mind Jumpers (15 January 2013), mindjumpers.com; and Shea Bennet, ‘22% of Black Internet Users Are Active on Twitter (Compared to 16% of White)’, Media Bistro (15 January 2013), mediabistro.com Ryan Kelly, ‘Twitter Study Reveals Interesting Results About Usage—40% is Pointless Babble’, Pear Analytics (12 August 2009), pearanalytics.com Danah Boyd, ‘Twitter: “Pointless Babble” or Peripheral Awareness Social Grooming?’, Zephoria (26 February 2014), zephoria.org Alex Santoso, ‘10 Quickie Quotes about Twitter’, (26 Febraury 2014), netorama.com Jochan Embley, ‘Twitter Alerts: Service to Help During Emergencies, Natural Disasters Comes to the UK’, Independent (18 November 2013), independent.co.uk Jolie O’Dell, ‘How Egyptians Used Twitter During the January Crisis’, Mashable (31 January 2011), mashable.com ‘What names are allowed on Facebook?’, Facebook Help Centre, www.facebook.com Rebecca Sulivan, ‘Sydney man fired after calling feminist writer Clementine Ford a ‘sl**’, News.com.au (1 December 2015), www.news.com.au 10 Nitasha Tiku and Casey Newton, ‘Twitter CEO: “We suck at dealing with abuse”’, The Verge (4 February 2015) www.theverge.com 11 ‘Announcing the Twitter Trust & Safety Council’, Twitter (9 February 2016), www.twitter.com ACKNOWLEDGEMENT Photo: © Ellica / Shutterstock.com CASE STUDY 11 619 www.downloadslide.net CASE STUDY 12 Zara International: fashion at the speed of light In this world of rapidly moving trends, no company does fast fashion better than Zara International Shoppers in a growing number of countries — 88 as of April 2016 — are fans of Zara’s knack for bringing the latest styles from sketchbook to shopfront at lightning speed and reasonable prices.1 In fast fashion, moments matter Zara’s parent company Inditex is known for year-on-year strong sales gains Low prices and a rapid response to fashion trends have pushed it into the top ranks of global clothing vendors The chain specialises in lightning-quick turnarounds of the latest designer trends at prices tailored to the young — about A$35 an item.2 Louis Vuitton fashion director Daniel Piette has described Zara as ‘possibly the most innovative and devastating retailer in the world’.3 Inditex shortens the time from order to arrival using a complex system of just-in-time production and inventory management that keeps Zara ahead of the competition Their distribution centres can have items in European stores within 24 hours of order receipt, and in American and Asian stores in less than 48 hours.4 ‘They’re a fantastic case study in terms of how they manage to get product to their stores so quick’, said Stacey Cartwright, executive vice president and CFO of Burberry Group PLC ‘We are mindful of their techniques.’5 The firm carefully controls design, production, distribution and retail sales to optimise the flow of goods, without having to share profits with wholesalers or intermediary partners Customers win with access to new fashions while they’re still fresh off the runway.6 Twice a week Zara’s finished garments are shipped to physical distribution centres that all simultaneously distribute products to stores worldwide These small production batches help the company avoid the risk of oversupply Because batches always contain new products, Zara’s stores perpetually energise their inventories.7 Most clothing lines are not replenished Instead they are replaced with new designs to create scarcity value — shoppers cannot be sure that designs in stores one day will be available the next day The Zara store in Melbourne’s CBD is located on a busy thoroughfare near other flagship stores 620 Management www.downloadslide.net Store managers track sales data with handheld devices They can reorder hot items in less than an hour Zara always knows what’s selling and what’s not When a look doesn’t pan out, designers promptly put together new products New arrivals are rushed to shop sales floors still on the black plastic hangers used in shipping Shoppers who are in the know recognise these designs as the newest of the new; soon after, any items left over are rotated to Zara’s standard wood hangers.8 Inside and out, Zara’s stores are designed to strengthen the brand Inditex considers this to be very important because that is where shoppers ultimately decide which fashions make the cut In a faux shopping street in the company’s headquarters, stylists craft and photograph eye-catching layouts that are emailed every two weeks to store managers for replication.9 Zara stores sit on some of the hottest shopping streets, including Bourke St Mall in Melbourne, near the flagship stores of Sportsgirl, General Pants and Myer While those adjacent stores all vie for the same consumer dollar, Zara sells fashion items at a lower price point It’s all part of the strategy ‘Inditex gives people the most up-to-date fashion at accessible prices,’ said Luca Solca, senior research analyst with Sanford C Bernstein in London That is good news for Zara as many shoppers trade down from higher priced chains.10 A single fashion culture The Inditex group began in 1963 when Amancio Ortega Gaona, chairman and founder of Inditex, got his start in textile manufacturing.11 After a period of growth, he assimilated Zara into a new holding company, Industria de Diseño Textil.12 Inditex has a tried-and-true strategy for entering new markets: start with a handful of stores and gain a critical mass of customers Generally, Zara is the first Inditex chain to break ground in new countries, paving the way for the group’s other brands, including Pull and Bear, Massimo Dutti and Bershka.13 Inditex farms out much of its garment production to specialist companies, located on the Iberian Peninsula, which it supplies with its own fabrics Although some pieces and fabrics are purchased in Asia — many of them not dyed or only partly finished — the company manufactures about half of its clothing in its hometown of La Coruña, Spain.14 Inditex CEO Pablo Isla believes in cutting expenses wherever and whenever possible Zara spends just 0.3 per cent of sales on ads, making the 3–4 per cent typically spent by rivals seem excessive in comparison Isla disdains markdowns and sales as well.15 H&M, one of Zara’s top competitors, uses a slightly different strategy Around one-quarter of its stock is made up of fast-fashion items that are designed in-house and farmed out to independent factories As at Zara, these items move quickly through the stores and are replaced often by fresh designs But H&M also keeps a large inventory of basic, everyday items sourced from inexpensive Asian factories.16 Ethical fashion How can a company turn fashion items around quickly and sell them at such an inexpensive price point while turning a solid profit? Is there a human price to be paid? According to the 2016 Australian Fashion Report — an annual report that assesses fashion companies’ labour rights systems in a bid to illuminate how they are addressing the alarming issues of forced labour, child labour and worker exploitation overseas, and then rates them from A to F — Zara ticks all of the right boxes when it comes to their transparent labour rights system The 2016 report gave Inditex a rating of A, the highest performing company after two Fairtrade companies Etiko and Audrey Blue This rating is not reflective of actual conditions on the ground, but is an analysis of the strength of Zara’s labour rights systems Their high rating implies that Inditex makes a concerted effort to trace back where the source materials for their clothing have come from, and is transparent with the public about this information Ratings are based on four key elements of the labour rights management system: policies knowing suppliers auditing and supplier relationships worker empowerment CASE STUDY 12 621 www.downloadslide.net Inditex’s score of A was averaged from an A+ rating on numbers 1–3 of the above elements and a B for worker empowerment.17 Is Zara expanding too quickly — opening about 400 stores per year?18 Will its existing logistics system carry it into another decade of intense growth? Can fast-fashion win the long-term retailing race? QUESTIONS In what ways are elements of the classical and behavioural management approaches evident in how things are done at Zara International? How can systems concepts and contingency thinking explain the success of some of Zara’s distinctive practices? Zara’s logistics system and management practices can handle the current pace of growth, but they will need updating at some point in the future How could quantitative management approaches and data analytics help Zara executives plan for the next generation of its logistics and management approaches? As a consultant chosen by Zara to assist with the expansion of its Australian stores, you have been asked to propose how evidence-based management might help the company smooth its way to success with an Australian workforce What areas will you suggest to be looked at for evidence-based decision making, and why? Gather the latest information on competitive trends in the apparel industry, and on Zara’s latest actions and innovations Is the firm continuing to well? Are other retailers getting just as proficient with the fast-fashion model? Is Zara adapting and innovating in ways needed to stay abreast of both its major competition and the pressures of a changing global economy? Is this firm still providing worthy management benchmarks for other firms to follow? ENDNOTES ‘Inditex: Who We Are: Concepts: Zara’, Inditex (21 February 2012), inditex.com Cecilie Rohwedder, ‘Zara Grows as Retail Rivals Struggle’, Wall Street Journal (26 March 2009), www.wsj.com ‘Zara, a Spanish Success Story’, CNN.com (15 June 2001), edition.cnn.com ‘Inditex Press Dossier’, INDITEX (2010), www.inditex.com Cecile Rohwedder and Keith Johnson, ‘Pace-setting Zara Seeks More Speed to Fight Its Rising Cheap-Chic Rivals’, Wall Street Journal (20 February 2008), p B1 ‘The Future of Fast Fashion’, The Economist (16 June 2005), www.economist.com Rachel Tiplady, ‘Zara: Taking the Lead in Fast-Fashion’, Bloomberg BusinessWeek (4 April 2006), www.bloomberg.com Rohwedder and Johnson, op cit 9 ibid 10 Rohwedder, op.cit 11 Inditex Press Dossier, op cit 12 ibid 13 ibid 14 ‘Shining Examples’, The Economist (15 June 2006), www.economist.com 15 ‘The Future of Fast Fashion’, op cit 16 Inditex Press Dossier, op cit 17 ‘The 2016 Australian Fashion Report: the truth behind the barcode’, Baptist World Aid Australia (20 April 2016), www.baptistworldaid.org.au 18 Susan Berfield and Manuel Baigorri, ‘Zara’s Fast Fashion Edge’, Bloomberg BusinessWeek (14 November 2013), businessweek.com ACKNOWLEDGEMENT Photo: © Nils Versemann / Shutterstock.com 622 Management www.downloadslide.net WILEY END USER LICENSE AGREEMENT Go to www.wiley.com/go/eula to access Wiley’s ebook EULA ... Cataloguing-in-Publication entry Title: Management/ John R Schermerhorn Jr . . . [et al.] Edition: 6th Asia Pacific edition ISBN: 9780730329534 (ebook) Subjects: Management — Asia Management — Pacific Area Other... Management 6TH ASIA – PACIFIC EDITION John R Schermerhorn Paul Davidson Aharon Factor David Poole Peter Woods Alan Simon Ellen McBarron Sixth edition published 2017 by John Wiley... foundations of management 33 Looking back to look forward 34 Introduction 36 2.1 Classical approaches to management 36 Scientific management 36 Administrative management 38 Bureaucratic management