Management

Angelo Kinicki
Arizona State University

Kent State University
Brian K. Williams
management
NINTH EDITION
kin75117_fm_i-xxxviii-1.indd 1 10/12/18 7:59 PM

MANAGEMENT: NINTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2020 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2018, 2016,
and 2013. No part of this publication may be reproduced or distributed in any form or by any means, or
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the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 21 20 19
ISBN 978-1-260-07511-3
MHID 1-260-07511-7
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Library of Congress Cataloging-in-Publication Data
Names: Kinicki, Angelo, author. | Williams, Brian K., 1938- author.
Title: Management : a practical introduction / Angelo Kinicki, Arizona State
University, Brian K. Williams.
Description: Ninth edition. | New York, NY : McGraw-Hill Education, [2020]
Identifiers: LCCN 2018047636| ISBN 9781260075113 (alk. paper) | ISBN
1260075117 (alk. paper)
Subjects: LCSH: Management.
Classification: LCC HD31 .K474 2020 | DDC 658—dc23 LC record available at
https://lccn.loc.gov/2018047636
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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.
mheducation.com/highered

brief contents
Walkthrough Preface of 9e xv
PART 1 9 Human Resource Management: Getting the Right

People for Managerial Success 322
Introduction
10 Organizational Change and Innovation: Lifelong
1 The Exceptional Manager: What You Do, How You Challenges for the Exceptional Manager 374
Do It 2
2 Management Theory: Essential Background for the
Successful Manager 42 PART 5
Leading
PART 2 11 Managing Individual Differences and Behavior:
Supervising People as People 408
The Environment of Management
12 Motivating Employees: Achieving Superior
3 The Manager’s Changing Work Environment and Performance in the Workplace 456
Ethical Responsibilities: Doing the Right Thing 76
13 Groups and Teams: Increasing Cooperation,
4 Global Management: Managing across Borders 116 Reducing Conflict 502
14 Power, Influence, and Leadership: From Becoming a
PART 3 Manager to Becoming a Leader 534
15 Interpersonal and Organizational Communication:
Planning
Mastering the Exchange of Information 580
5 Planning: The Foundation of Successful
Management 156
6 Strategic Management: How Exceptional Managers PART 6
Realize a Grand Design 188 Controlling
Learning Module 1: Entrepreneurship 220 16 Control Systems and Quality Management:
7 Individual and Group Decision Making: How Techniques for Enhancing Organizational
Managers Make Things Happen 238 Effectiveness 630
Learning Module 2: The Project Planner’s Toolkit:
Flowcharts, Gantt Charts, and Break-Even Analysis 681
PART 4
Organizing
8 Organizational Culture, Structure, and Design:
Building Blocks of the Organization 280
Chapter Notes CN-1 Organization Index IND-5

Name Index IND-1 Glossary/Subject Index IND-11
iii
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dedication
To Joyce Kinicki, the love of my life, best friend, and the wind beneath
my wings.
—Angelo
iv

about the author
Angelo Kinicki is an emeritus professor of management and held the

Weatherup/Overby Chair in Leadership from 2005 to 2015 at the W.P. Carey
School of Business at Arizona State University. He joined the faculty in 1982,
the year he received his doctorate in business administration from Kent State
University. He was inducted into the W.P. Carey Faculty Hall of Fame in 2016.
Angelo currently is the Dean's Scholar in Residence at Kent State University.
He is teaching in the MBA program and serves on the Dean's National Advisory
Board.
Angelo is the recipient of six teaching awards from Arizona State
University, where he taught in its nationally ranked MBA and PhD programs.
He also received several research awards and was selected to serve on the
editorial review boards for four scholarly journals. His current research
interests focus on the dynamic relationships among leadership;
organizational culture; organizational change; and individual, group, and
organizational performance. Angelo has published over 95 articles in a
variety of academic journals and proceedings and is co-author of eight
textbooks (32 including revisions) that are used by hundreds of universities
around the world. Several of his books have been translated into multiple
languages, and two of his books were awarded revisions of the year by
McGraw-Hill. Angelo was identified as being among the top 100 most
influential (top .6%) Organizational Behavioral authors in 2018 out of a total
Courtesy of Angelo Kinicki of 16,289 academics.
Angelo is a busy international consultant and is a principal at Kinicki and Associates, Inc., a
management consulting firm that works with top management teams to create organizational
change aimed at increasing organizational effectiveness and profitability. He has worked with
many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse
industries. His expertise includes facilitating strategic/operational planning sessions,
diagnosing the causes of organizational and work-unit problems, conducting organizational
culture interventions, implementing performance management systems, designing and
implementing performance appraisal systems, developing and administering surveys to
assess employee attitudes, and leading management/executive education programs. He
developed a 360° leadership feedback instrument called the Performance Management
Leadership Survey (PMLS) that is used by companies throughout the world.
Angelo and his wife of 37 years, Joyce, have enjoyed living in the beautiful Arizona desert
for 36 years. They are both natives of Cleveland, Ohio. They enjoy traveling, hiking, and
spending time in the White Mountains with Gracie, their adorable golden retriever. Angelo also
has a passion for golfing.
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new to the ninth edition
We are pleased to share these exciting updates

and new additions!
Two major changes were implemented in the ninth edition. The first involved a new strategic
career readiness theme throughout the product to address employers’ concerns about
students graduating without being career ready. The second was to extend our emphasis on
the practical application of management. Below is a review of these substantive changes.
Career Readiness Theme Promotes Employable Skills
Global surveys of CEOs and recruiters reveal that college graduates do not possess the knowl-
edge, skills, and attributes desired by employers, resulting in a lack of career readiness. We want
to promote the development of your students’ career readiness competencies so that they are
more employable. Therefore, we’ve introduced a new strategic theme of career readiness to cre-
ate a link between the principles of management and the objective of providing students with the
tools they need to flourish on their chosen employment path. This integration takes five forms:
• The career readiness theme is thoroughly introduced in Chapter 1. We introduce a major
section, 1.7, entitled “Building Your Career Readiness,” and present a model of career
readiness along with a table of competencies desired by employers.
• Over 40 of the product’s 66 Self-Assessments pertain directly to a career readiness
competency. Feedback from these self-assessment can be used to assist students in
creating a development plan focused on being career ready.
• Each chapter concludes with a new section entitled “Career Corner: Managing Your
Career Readiness.” This section serves two purposes. First, it assists students in linking
chapter content with the competencies of career readiness, which provides a powerful
association between the principles of management and the skills desired by employers.
Second, this material provides students with practical tips for developing targeted career
readiness competencies. We believe students can become more career ready by following
the advice in these Career Corner sections.
• We developed a targeted set of exercises in Connect, our online teaching and learning
platform, that give students hands-on experience working with the career readiness
competencies desired by employers.
• We created a set of experiential exercises for each chapter in our unique Teaching
Resource Manual that are targeted to develop students’ career readiness competencies.
Extending the Practical Application of Management Concepts
Practical application has always been a major feature of this product. We want students to
understand how to use what they are learning in both their personal and professional lives.
We extend our emphasis on practicality by:
• Every chapter begins with a new feature entitled “Manage U.” It replaces the Manager’s
Toolbox and provides students with actionable tips for applying the material in each chapter.
• Each chapter includes two new boxes that provide testimonials from millennials about
their experiences with effective and ineffective management. “I wish I . . .” boxes
illustrate real-world examples in which students recall an instance when they or their
boss could have better applied certain management concepts. “I’m glad I . . .” boxes
discuss positive applications of management concepts.
• To promote mastery of management concepts, we developed a continuing case on Uber
for each chapter. Application learning can be assessed in Connect.
• To promote critical thinking and problem solving, a key career readiness competency,
we revamped our Management in Action Cases. They now focus on higher levels of
vi

learning by asking students to solve real organizational problems using relevant
management concepts.
Fully revised Teaching Resource Manual (TRM) provides complete guidance for instructors
The TRM was new to the eighth edition and was developed to provide instructors with a
turnkey solution to fostering a discussion-based and experiential learning experience. It
amounts to a traditional instructor’s manual on steroids by providing suggestions for
creatively teaching topics, suggested videos outside of the McGraw Hill arsenal (e.g.,
YouTube, The Wall Street Journal, etc.), group exercises, lecture enhancers, and supplemental
exercises that correspond with cases and Self-Assessments. The TRM has been praised by
instructors around the world for its depth, navigation, and experiential-based content. We
improved this resource based on feedback from faculty.
Our first change acknowledges that many of us teach online or in larger, in-person classes
(sometimes both!). The ninth edition TRM not only includes revised activities for the traditional
classroom, but also includes new online and large, in-person class activities for every chapter.
The next set of changes involve providing follow-up activities for the new career
readiness–based exercises in Connect because we believe students need these developmental
activities to increase their career readiness. We also provide in-depth teaching notes for new
Manager’s Hot Seat videos and Application-Based Activities in the form of simulations.
Finally, we provide new web video links for each chapter. These free, short videos allow
instructors to illustrate the practical applications of management principles. We also include
new current online article links instructors can use to discuss material that supplements the text.
“ The TRM is top of the line.
” —Todd Korol,
Monroe Community College
“ The TRM is by far the most comprehensive and useful on the market. It is very user friendly for both
faculty and students.
” —Gerald Schoenfeld,
Florida Gulf Coast University
Completely revamped, revised, and updated

chapters
In each chapter, we refreshed examples, research, figures, tables, statistics, and photos, as
well as modified the design to accommodate new changes to this ninth edition. We have
also largely replaced topics in such popular features as Example boxes, Practical Action
boxes, Management in Action cases, and Legal/Ethical Challenges cases.
While the following list does not encompass all the updates and revisions, it does high-
light some of the more notable changes.
• Section 1.3—This section was moved to section 1.7 and
CHAPTER 1
section 1.4 was moved here. Introduces new key term
• New Manage U feature: Using Management Skills for College “nonmanagerial employees.” Updated salary information for
Success. first-line managers. New examples for “for-profit” and
• Section 1.1—New Example box on efficiency versus “nonprofit” organizations. New data in “Managers for Three
effectiveness discusses how Delta Airlines handled an Types of Organizations.”
emergency at Atlanta’s Hartsfield-Jackson Airport. Updated • Section 1.4—Section 1.6 became section 1.4, “Roles
CEO pay and labor statistics. New example of museum Managers Must Play Successfully.” New example of Mary
curator in discussion of rewards of management. Bara, CEO of GM, to illustrate managerial work activities. New
• Section 1.2—New boxed feature “I wish my manager was Practical Action box on mindfulness. New example of Google
more of a leader than a manager.” CEO Sundar Pichai in discussion of informational roles.
New to the ninth edition vii

• Section 1.5—New running example of Mary Bara used to • Section 2.8—Expanded and updated in-content examples to
explain the skills needed to manage. New boxed interview showcase the three parts of a learning organization as well
feature “I’m glad I have conceptual skills.” New Practical as expanded content examples on the three roles managers
Action box on developing soft skills. play in building learning organizations. Updated company
• Section 1.6—Updated Example box about Airbnb. Introduces examples for learning organizations, including a discussion of
new key terms “information technology application skills” and Google Buzz, American Express, and Apple.
“meaningfulness.” New discussion of the Fourth Industrial • New Career Corner feature on Managing Your Career Readiness.
Revolution. Updated statistics regarding workforce diversity. • New Management in Action case: The Decline of Sears.
New discussion of Volkswagen and ethical standards.
• New continuing case on Uber.
Updated Practical Action box on cheating. New reference to
sexual harassment in discussion of ethical standards. New CHAPTER 3
suggestions for building meaning into your life.
• New Manage U feature: Increase Ethical Behavior by
• Section 1.7—Entire new section on building career readiness.
Fostering an Ethical Climate.
Introduces new key terms “attitude,” “career readiness,”
• Section 3.1—Updated content regarding Millennials and their
“proactive learning orientation,” and “resilience.” Includes
Figure 1.3 regarding gaps in college graduates and search for meaning.
employers’ assessment of students’ career readiness; Table • Section 3.2—Updated content and company applications for
1.2 description of KSAOs needed for career readiness; Figure internal stakeholders at SAS and the board of directors at
1.4, Model of Career Readiness; and discussion of Facebook.
developing career readiness. New Self-Assessment 1.2, To • Section 3.3—New Example box discussing United Airlines and
What Extent Do You Accept Responsibility for Your Actions? its responsibilities to its stakeholders versus customers. New
• Section 1.8—New section titled “Career Corner: Managing boxed feature “I wish I kept a closer eye on trends affecting
Your Career Readiness.” Includes Figure 1.5, Process for our suppliers.” Updated statistics regarding unions. New
Managing Career Readiness, and review of its application. Example box discussing Amazon’s new headquarters and
• New Management in Action case: Did Major League Baseball whether it will benefit the city chosen. New boxed feature “I’m
Value Money over Bob Bowman’s Behavior? glad I kept current on my industry’s general environment.”
Updated Example discussing the Internet of Things. Introduces
new key term “LGBTQ.” New figure showcasing the states in
which marijuana is legal. Various content updates, including
CHAPTER 2 company examples for the task environment (including an
• New Manage U feature: What Type of Work Do I Prefer? updated list of “America’s Most Hated Companies”) and special
interest groups with a discussion of the #MeToo movement and
• Section 2.1—New Example box explores the successes and
international forces such as Brexit. Updated examples for
failures of Zappos’ management experiment called “holacracy.” sociocultural forces to include seismic changes. Updated
• Section 2.2—New coverage of Charles Clinton Spaulding’s statistics for demographic forces of change.
role in administrative management. • Section 3.4—New Example box featuring Volkswagen and
• Section 2.3—New Example boxes including the new boxed ethics. Introduces new key term “abusive supervision.”
feature “I’m glad I work in an organization with a Theory Y Updated statistics on workplace cheating. New Example box
culture” and an update to the Example box studying open-plan discussing “whistleblowing” photographer Simon Edelman’s
offices as an application of the behavioral science approach. photos of the Trump administration and the fallout. Updated
• Section 2.4—New Example box discussing operations content examples for recent Sarbox cases and the most
management at Intel. common ethics violations at work.
• Section 2.5—New Example box applying systems thinking. • Section 3.5—New content example of Tom’s Shoes as a
• Section 2.6—New Example box applying the contingency company showcasing social responsibility. New example of
the benefits to Coca-Cola for going green and new table
viewpoint with manufacturers “pitching” jobs to parents of
showing how being ethical and socially responsible pays off.
college students hoping they’ll influence their children to
consider open positions after high school graduation. A new • Section 3.6—New Example box discussing HD Supply
Practical Action box exploring Big Data. Holdings and Fox News and the good and bad of corporate
governance.
• Section 2.7—New boxed feature “I wish my manager
believed in a quality-management viewpoint,” as well as • New Career Corner feature on Managing Your Career
expanded content to include a deeper discussion of Six Readiness.
Sigma and ISO 9000, including definitions of both as well as • New Management in Action case: Who’s to Blame for College
practical examples of companies using each approach. Basketball’s Dark Underbelly?
viii New to the ninth edition

• Updated Legal/Ethical Challenge: Should You Apply to Have 4.2 discussing current followers of world religions. Current
Your Student Loans Forgiven? examples of expropriation, corruption, and labor abuses. An
• New continuing case on Uber. updated discussion on expatriates and why U.S. managers
often fail. New boxed feature “I’m glad I understood the
CHAPTER 4 GLOBE Project’s cultural dimensions.”
• New Manage U feature: Working Successfully Abroad: • New Career Corner feature: Managing Your Career
Developing Cultural Awareness. Readiness: Working Overseas. New key term “context.”
• Section 4.1—Updated section opener with new statistics • New Management in Action case: The Growth and Stall of
regarding United States imports in 2016. Updated Table 4.1 Didi Chuxing.
and corresponding content with competitiveness rankings for • New Legal/Ethical Challenge: Should Qatar Be Hosting the
2016–2017. New Example box featuring international 2022 World Cup?
e-commerce company Alibaba. Updated content on the • New continuing case on Uber.
positive and negative effects of globalization. New content
examples featuring recent megamergers including CVS/
Dignity Health, Amazon/Wholefoods. CHAPTER 5
• Section 4.2—New Example box discussing how to get an edge • New Manage U feature: Making an Effective Plan for Starting
in the global job market. Introduces new key term “cross- Your Career.
cultural awareness.” The career readiness competency of • Section 5.1—New Example box on how to write a business plan.
cross-cultural awareness is defined and leads into the The previous discussion of VRIO was moved from this section
corresponding Practical Action box. Features an updated to Chapter 6. New research on the benefits of planning.
discussion of U.S. brands that are foreign owned. New boxed
• Section 5.2—Opens with a new Table 5.1 discussing and
feature “I wish I considered the impact of ethnocentrism.”
summarizing mission, vision, and values statements. New
• Section 4.3—Updated discussion on the foreign example box on Coca-Cola includes the company’s mission,
manufacturing of Apple products. An updated discussion of vision, and values statements. A new Example box discusses
why companies expand internationally, including Netflix, Coca-Cola’s six long-term strategies. New boxed feature “I
Amazon, and Ford Motor Company and expanded wish my manager put more effort into operational planning.”
discussion of foreign subsidiaries. Updated examples for
• Section 5.3—New boxed feature “I’m glad I developed an
how companies expand internationally, including Under
action plan.” Updated Example box pertaining to long and
Armour. Updated examples of global outsourced jobs,
short-term goals at Southwest Airlines.
including an updated Table 4.2 with top exporting countries
through 2016. Updated list of U.S. companies opening • Section 5.4—New Example box on setting clear goals at
franchises overseas, including Chick-fil-A and Cold Stone. Snapchat. Included new research on goal setting programs.
Revised the three types of goals used in MBO: performance-
• Section 4.4—Updated Table 4.3 with the U.S.’s top ten
based, behavioral-based, and learning-based. New Self-
trading partners. Updated content regarding tariffs with a
Assessment determining whether students have a proactive
discussion of the Trump administration as well as updated
learning orientation. Added Tornier as an example of an
content pertaining to import quotas, dumping, and
Action Plan. New Practical Action box for small businesses
embargoes and sanctions. New table featuring organizations
and goal setting.
promoting international trade. Updated discussion on NAFTA,
the EU, and other trading blocs complete with a new Example • Section 5.5—New Example box applying the planning/control
box discussing Brexit’s impact on Britain and the EU. Updated cycle through Tesla’s Model 3.
Example box to showcase the exchange rates on various • New Career Corner feature: Managing Your Career
common products like rent, Starbucks, and designer jeans. Readiness.
Updated statistics for major economies, including China, • New Management in Action case: Fender Rebrands to Stay in
India and Brazil. Tune with the Times.
• Section 4.5—Changed the section title to “The Value of • New Legal/Ethical Challenge: Is Pfizer Putting Profits above
Understanding International Differences” and expanded the Alzheimer’s Patients?
opening with a discussion on international differences. An
updated discussion on language and personal space with a
discussion on learning foreign language online and through
New Learning Module: Entrepreneurship
apps and a new Example box discussing the differences in
personal space in various countries. Updated content on • New Manage U feature: So You Want to Start a Business?
differences in communication. New Practical Action box • Section LM 1.1—Introduces entrepreneurship and its
discussing how to run an international meeting. New Figure foundation, including a discussion of Elon Musk. Introduces
New to the ninth edition ix
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the concept of intrapreneurship, leading to a new Example • New Career Corner feature: Managing Your Career
box discussing Intel’s Genevieve Bell. Discusses how Readiness.
entrepreneurship is different from self-employment. A new • New Management in Action case: General Electric’s Evolving
figure LM 1.1 lists the characteristics of entrepreneurs. New Strategy.
Self-Assessment to determine if students have an
• New Legal/Ethical Challenge: Is Your School Selling Your Bank
“entrepreneurial spirit.” A discussion of entrepreneurship
Accounts?
across the globe. New Table LM 1.1 with facts about small
business. • New continuing case on Uber.
• Section LM 1.2—Begins by discussing how entrepreneurs
come up with ideas to start a business. Discusses how to
CHAPTER 7
write a business plan. Reviews the options for creating a • New Manage U feature: How to Make Good Decisions.
legal structure for a business and how to obtain financing. • Section 7.1—Updated Example box on Starbucks. Expanded
The importance of creating the right organizational culture content on intuition with a new Example box on the power of
and design is explored. New Example box featuring the start intuition and a new Practical Action box on how to improve
and growth of a small business. intuition.
• Section 7.2—Section opens with updated examples on
CHAPTER 6 business ethics including medication profiteering, the
#MeToo movement, CEOs being punished for unethical
• New Manage U feature: Building Your Personal Brand.
behavior, and as a contrast to bad behavior, philanthropists
• Section 6.1—New coverage regarding levels of strategy. Bill and Melinda Gates. New boxed feature “I’m glad I found
New Figure 6.1 shows three levels of strategy. Introduces an employer who cares about ethics more than just making
the new key term “functional level strategy.” Updated money.”
research on strategic planning at small and large firms. New
• Section 7.3—Begins with an updated discussion of ethics at
Example box illustrates strategic planning at Evernote and
Google. New examples of companies using evidenced-based
Groove HQ.
decision making. Updated Example box on using analytics in
• Section 6.2—The five steps of the strategic management sports. Use of Big Data at companies such as Target, JetBlue,
process were changed to reflect current thinking. New boxed HP Labs, and the Obama administration is discussed. New
feature “I wish my company would have evaluated its current Example box on data and hacking, featuring the Equifax breech.
reality before opening the doors for business.” New Self-
• Section 7.4—New examples of various decision-making
Assessment on strategic thinking.
styles of CEOs, including Elon Musk, Jeff Bezos, Ginni
• Section 6.3—Begins with new key term “sustainable Rometty, and Madeline Bell.
competitive advantage.” Updated Example box of SWOT
• Section 7.5—Renamed “Decision-Making Biases and the Use
analysis for Toyota; VRIO discussion from Chapter 5 now
of Artificial Intelligence.” Section opens with a discussion on
featured in this section with updated content and a new
heuristics and leads into updated content and discussion
Figure 6.3. New Example box on developing competitive
illustrating overconfidence bias with BP oil and the
advantage in the Internet economy. Updated Example box
government’s spy plane for the escalation of commitment
with contingency planning in the wake of Hurricane Harvey
bias. Introduces a new section on AI, reviewing its pros and
with a discussion on CVS, Walgreens, and Fed Ex.
cons. The use of AI at various companies is highlighted,
• Section 6.4—Renamed “Establishing Corporate Level including Google and Microsoft.
Strategy.” Section now opens with Three Overall Types of
• Section 7.6—New boxed feature “I wish my workplace
Corporate Strategy and includes a new table showcasing
didn’t have a toxic group decision-making environment.”
how a company can implement overall corporate level
New discussion on the Delphi technique and devil’s advocacy,
strategies. New discussion of the BCG Matrix and different
along with a figure illustrating their implementation.
diversification strategies. Introduces new key term “unrelated
Section concludes with an introduction to the concept of
diversification.” Discussion on Porter’s five competitive forces
project post-mortems with practical examples from Disney
and four competitive strategies moved to Section 6.5.
and Pixar.
• Section 6.5—Renamed “Establishing Business Level
• New Career Corner feature: Managing Your Career
Strategy.” The discussion on Porter’s competitive forces and
Readiness.
strategies moved to this section. New examples used to
illustrate these concepts. • New Management in Action case: New York Subway System.
• Section 6.6—Renamed “Executing and Controlling Strategy.” • New Legal/Ethical Challenge: It’s All about a Peacock
New boxed feature “I’m glad my company adjusts its strategy (featuring a discussion on emotional support animals).
as we go.” • New continuing case on Uber.
x New to the ninth edition

CHAPTER 8 the lies job applicants tell. New boxed feature “I wish my
company used a structured interview process.” A new
• New Manage U feature: How to Get Noticed in a New
Practical Action box discussing what employers are looking
Job: Fitting into an Organization’s Culture in the First
for in a job interview. Updated information on the legality of
60 Days.
employment tests. New Example box listing the pros and
• Section 8.1—New boxed feature “I wish my company had cons of personality tests and updated information on
integrated its corporate strategy and organizational culture.” personality tests including Myers-Briggs. Section closes with
New Table 8.1 reviews the drivers of organizational culture. a discussion on AI and how it is changing the recruitment and
Updated Example box on how strategy affects culture at selection process.
Cleveland Clinic. • Section 9.3—Updated statistics on benefits, including a new
• Section 8.2—New examples illustrate the three levels of discussion regarding gender-based preferences.
organizational culture. New examples used to explain the • Section 9.4—Renamed “Orientation and Learning and
four types of culture within the competing values framework.
Development.” Opens with a new example of onboarding
New examples used to explain how employees learn culture.
with Facebook’s new employee boot camp. New content on
Updated research on person-organization fit.
learning and development including Millennials, SAS, and
• Section 8.3—New boxed feature “I’m glad management Estee Lauder. Updated research on L&D programs. New
embraced an empowering culture during a merger.” New Example box on Keller Williams and its learning and
examples used to illustrate the 12 methods organizations use development program.
to change culture. • Section 9.5—New Example box on performance management
• Section 8.5—New Practical Action box on how to effectively at Edward Jones. Updated research on performance
delegate. management and performance appraisal, and new
• Section 8.6—Opens with an updated discussion on Google performance management examples pertaining to Deloitte,
and its culture of innovation. An updated Example box on Accenture, Cigna, Microsoft, and Adobe. Discussion of how
Whole Foods is used to explain horizontal designs. forced ranking is losing favor. New discussion of how to give
• Section 8.7—Section is introduced with a new key term: effective performance feedback.
“contingency approach to organizational design.” New • Section 9.6—Updated Practical Action box on the right way to
example of Etsy is used to frame discussion of mechanistic handle a dismissal.
and organic organizations. • Section 9.7—Updated statistics and information regarding
• New Career Corner feature: Managing Your Career workplace discrimination and bullying. New Example box
Readiness. discussing sexual harassment at work.
• New Management in Action case: Wells Fargo’s Sales Culture • Section 9.8—Opens with updated statistics on labor unions.
Fails the Company. Updated Figure 9.4 showing right-to-work states.
• Updated Legal/Ethical Challenge: Should Socializing Outside • New Career Corner feature: Managing Your Career Readiness.
Work Hours Be Mandatory? • New Management in Action case: Difficulties Attracting and
• New continuing case on Uber. Retaining Human Capital in the Nursing Profession.
• New Legal/Ethical Challenge: Should Noncompete
CHAPTER 9 Agreements Be Legal?
• New Manage U feature: How to Prepare for a Job • New continuing case on Uber.
Interview.
• Section 9.1—New examples from Fortune’s 10 best work CHAPTER 10
places for Millennials, including Ultimate Software, SAS,
Quicken Loans, Salesforce, and Encompass Home Health and • New Manage U feature: How Can I Be More Creative at Work?
Hospice. Updated research on the effectiveness of HR • Section 10.1—New Example box discussing the decline of
practices. New information on company rewards. New Toys R Us. New examples of companies experiencing change.
examples to illustrate human and social capital including New Updated Example box on BP and the oil spill in the Gulf of
Brunswick Power and Inter-American Development Bank. Mexico. New examples to explain the forces for change.
• Section 9.2—New statistics on recruiting trends and Updated Example box on ridesharing and self-driving cars.
examples for internal and external recruiting, including Visto • Section 10.2—New examples to illustrate three kinds of
and Glassdoor. New boxed feature “I’m glad my company is change. New boxed feature “I’m glad my company unfroze
serious about its recruiting and selection processes.” employees before implementing organizational change.”
Updated Example box discussing the changing job market, Added a new section on applying the systems model of
Millennials, and the gig economy. New research regarding change featuring Stora Enso.
New to the ninth edition xi
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• Section 10.3—Updated statistics regarding the effectiveness • Section 11.5—Updated examples and statistics regarding
of organizational development. trends in workplace diversity, including age, gender pay gap,
• Section 10.4—This section was completely rewritten, race, and sexual orientation. New example discussing Google’s
restructured, and renamed “Organizational Innovation.” internal memo regarding women in tech and how it showcases
Introduces the new key term “innovation.” New Figure 10.5 a barrier to diversity. Updated research pertaining to barriers to
shows the various approaches to innovation. A new figure diversity. New boxed feature “I’m glad my manager embraced
illustrates the supporting forces for innovation. A new table diversity and fostered inclusiveness.” New Example box
lists the most innovative companies. A new Self-Assessment showcasing Ultimate Software.
measures organizational climate for innovation. New boxed • Section 11.6—Updated research on stress and its
feature “I wish my company considered the components of consequences. Introduces new key term “work–life conflict.”
an innovation system.” Introduces new key term New Table 11.4 discusses the negative consequences of
“crowdsourcing.” New Example box discussing IDEO’s conflict, including work, family, and other life demands. A
approach to innovation. Recent research is used to support new boxed feature “I wish my manager alleviated my work-
our discussion of innovation. related stress.” Reworked the content regarding workplace
• Section 10.5—Updated research regarding resistance to change. stress and its consequences. New coverage of resilience and
its role in career readiness. A new Self-Assessment assesses
• New Career Corner feature: Managing Your Career Readiness.
levels of resilience. Updated content on holistic wellness and
New key terms “self-affirmations” and “self-compassion.”
a new Example box showcasing Google’s corporate wellness
• New Management in Action case: Chipotle Needs to Change. program.
• New Legal/Ethical Challenge: Did L’Oreal Go Too Far in Firing • New Career Corner feature: Managing Your Career Readiness.
Its Patent Lawyer?
• New Management in Action case: Does the Financial Services
• New continuing case on Uber. Industry Lack Diversity?
• New Legal/Ethical Challenge: Should Airlines Accommodate
CHAPTER 11 Oversized People?
• New Manage U feature: How to Make a Positive First • New continuing case on Uber.
Impression at Work.
• Section 11.1—Opens with updated information and
CHAPTER 12
statistics for employment and personality testing and the
Big Five personality dimensions. Updated research • New Manage U feature: Managing for Motivation: Building
regarding personality and individual behavior and work your Own Motivation.
attitudes. Introduced the new key term “generalized • Section 12.1—New company examples and statistics on
self-efficacy” with a discussion on the topic and its tie to extrinsic and intrinsic rewards, including Uber, McDonald’s,
career readiness with a new Self-Assessment measuring Outback Steakhouse, and MARS. A new section provides an
levels of generalized self-efficacy. A new Practical Action overview of all motivation theories discussed in the chapter.
box discussing how technology can be used to develop • Section 12.2—Added a quick summation of the
Emotional Intelligence. motivation theories discussed in the section. Updated
• Section 11.2—New Self-Assessment to measure the career Example box on hotel company Joie de Vivre. Updated
readiness competency of having a positive approach to work. research on need theories. New boxed feature
New Practical Action box on using cognitive reframing to “I’m glad I fostered employees’ sense of competence.”
reduce cognitive dissonance. Updated research regarding the application of Herzberg’s
• Section 11.3—Updated research regarding stereotypes and two factor theory.
implicit bias. Updated discussion on distortions in perception, • Section 12.3—Updated research on process theories of
including gender stereotypes. New Example box discussing motivation. Updated statistics on CEO pay. New examples to
the halo effect and how body weight affects careers. New illustrate the application of equity theory. New Example box
Example box on the Pygmalion effect. showcasing transparency at Buffer. New examples of Tesla
• Section 11.4—Opens with entirely new content on employee and Kronos to demonstrate the application of expectancy
engagement with a new table showing the predictors of theory. New coverage of stretch goals and two types of goal
engagement. Updated research on job satisfaction, orientations—learning goal orientation and performance goal
organizational commitment, and important workplace orientation.
behaviors like performance, organizational citizenship, and • Section 12.4—Updated research on job design. New Example
counterproductive behavior. Updated the Example box on box on how job characteristics matter in the modern
toxic workplaces. workforce.
xii New to the ninth edition

• Section 12.5—Updated research on rewards. New • New Management in Action case: IBM Wants Its Employees
examples to illustrate the four types of reinforcement. New Back in the Office.
boxed feature “I wish my manager used positive • New Legal/Ethical Challenge: When Employees Smoke
reinforcement rather than punishment.” Marijuana Socially: A Manager’s Quandary.
• Section 12.6—Updated research on compensation, • New continuing case on Uber.
nonmonetary incentives, and other rewards. Updated
statistics on money as a motivator. Updated content on
incentive plans. Updated the example box on successful CHAPTER 14
workspaces. New Practical Action box on how managers can
• New Manage U feature: Improving Your Leadership Skills.
encourage gratitude.
• Section 14.1—Introduces key term “leadership coaching”
and the difference between leading and managing, including
Readiness.
a new Table 14.1 showing the characteristics of managers
• New Management in Action case: Motivation Challenges in and leaders. Introduces new key term “managerial
the Fast-Food World. leadership.” New coverage of managerial leadership and
• New Legal/Ethical Challenge: Are Workplace Wellness coping with complexity versus coping with change. Updated
Programs Using Proper Motivational Tools? Table 14.2 on influence tactics with new example of
• New continuing case on Uber. exchange and legitimizing tactics. Developed a new
integrated model of leadership (Figure 14.1) to foreshadow
CHAPTER 13 the theories covered in the chapter.
• Section 14.2—Opens with an example of Phebe Novakovic,
• New Manage U feature: Effectively Managing Team
CEO of General Dynamics, as someone who embodies the
Conflict.
trait approach to leadership. Table 14.3 updated to show
• Section 13.1—Updated research on teams. Updated Example
how the Big Five personality traits, which were introduced in
box on informal groups and informal learning. Updated Chapter 11, represent positive, task-oriented traits.
content regarding self-managed and virtual teams. Updated Expanded the discussion on narcissism and gender and
Practical Action box regarding best practices for virtual leadership. Updated the Example box discussing great
teams. worldwide leaders. Renamed “strategic skills” in Table 14.4
• Section 13.2—Updated content on punctuated equilibrium to “conceptual skills.” New for theories drawn from trait
and its tie to Brexit. theory, including Martha Stewart as a micromanager. New
• Section 13.3—Updated research regarding building high- company examples for organizations using trait assessments,
performance teams. Updated discussion on collaboration, including Citigroup, ExxonMobil, Ford Motor, Procter &
including new a new study of the relationship between Gamble, Hewlett-Packard, and JPMorgan. Replaced the
listening to happy music, mood, and collaboration. New discussion on “cross-cultural competency” with a “global
boxed feature “I’m glad my manager fosters collaboration.” mind-set” and illustrated its tie to career readiness. Updated
New Example box focuses on building trust. New Practical research on leadership traits.
Action box on building effective team norms. Added new • Section 14.3—New examples of initiating structure
material regarding effective team processes and their role in leadership, including Meg Whitman and David Miliband. New
building high-performance teams. Introduces the new key examples for transactional and empowering leadership,
terms “team processes,” “team charter,” “team reflexivity,” including Nick Saban and Sheryl Sandberg. New Example box
and “team voice.” showcasing Lauren Bush Lauren’s values-driven leadership.
• Section 13.4—Updated research on conflict. New examples Introduces key term “passive leadership.” Updated research
of dysfunctional and functional conflict. New boxed feature “I on behavioral approaches.
wish I was able to manage interpersonal conflict more • Section 14.4—Updated research on contingency leadership.
effectively.” Updated the discussions on kinds of conflict. • Section 14.5—New Example box discussing Pepsi’s Indra
Updated discussion on ways intergroup conflicts are Nooyi and her transactional and transformational leadership.
expressed, including an example for ambiguous jurisdictions New examples of John Hennessy, Dr. Donald Hopkins, Meg
with a racial-profiling incident at Starbucks. New Example box Whitman, and John Mackey used to illustrate the four key
on playing the devil’s advocate as a way to resolve conflict. behaviors of transformational leaders. New boxed feature
Section closes with a new figure on five conflict handling “I’m glad I understood the value of using individualized
styles. consideration.” Section closes with an updated summary on
• New Career Corner feature: Managing Your Career what we know about transformational leadership. Updated
Readiness. research on transformational leadership.
New to the ninth edition xiii
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• Section 14.6—Expanded the discussion on the usefulness of • New Management in Action case: Fyre and Fury.
the LMX model. New boxed feature “I wish I had known • Updated Legal/Ethical Challenge: Was ESPN Fair in Firing
about the impact of a poor LMX: I do now!” Updated research Curt Schilling for His Social Media Post?
on LMX and humility.
Readiness. New key term “Dunning-Kruger effect.”
• New Management in Action case: VA Turnaround: A Waiting CHAPTER 16
Game. • New Manage U feature: Using a Mentor to Exercise Control in
• New Legal/Ethical Challenge: Should Starbucks Have a Your Career.
Corporate Loitering Policy? • Section 16.1—New examples on why control is needed and
• New continuing case on Uber. new company examples for control, including Takata, FedEx,
UPS, The New York Times, and Uber. New boxed feature “I’m
glad my company made employees feel valued and engaged
CHAPTER 15 by regularly monitoring performance.” Introduces the new
• New Manage U feature: Improving Your Use of Empathy. key term “control charts” with a discussion on the topic,
• Section 15.1—Kicks off with new research on communication including an example and new figure. New example of
effectiveness. New boxed feature “I’m glad my manager was feedforward control at Southwest Airlines.
an effective communicator.” New example of noise. Updated • Section 16.2—New Example box regarding fair labor
the Example box on “Secrecy and Silence” to include practices at Adidas. New examples on levels of control and
Volkswagen and Theranos. Updated research on media the supply chain at KFC in the UK.
richness and selecting the best medium. • Section 16.3—New examples of the balanced scorecard,
• Section 15.2—Updated discussion and research on the including an internal business perspective at National Marrow
grapevine. Updated Practical Action box on how to Donor Program and an innovation and learning perspective at
streamline meetings. Tolko Industries LTD. New example of cascading a strategy map.
• Section 15.3—Updated discussion on the physical barriers of • Section 16.4—New examples for internal audits, including
communication, including open office plans. Updated Citigroup.
discussion and statistics for personal barriers to • Section 16.5—Opens with updates to the winner of the
communication and nonverbal communication. New Example Baldrige Award, Bristol Tennessee Essential Services (BTES).
box discussing personal and cross-cultural barriers to New boxed feature “I wish my company were focused on
communication and how they adversely affect organizations. continuously improving work processes.” New examples to
New Practical Action box on improving communications illustrate Deming’s PDCA framework. New Example box
between men and women. discussing Hyundai and its challenge to the luxury car
• Section 15.4—Updated Figure 15.3 showing the use of social market. Kia Motors is introduced as a new example of
media across various age groups. Updated research on social improvement orientation. Updated Example box on Kaizen
media and managerial and organizational effectiveness. New principles. New Example box on service excellence with a
Practical Action box on building your own social media brand. discussion including Nordstrom’s and Trader Joes. Updated
New examples for crowdsourcing. New Example box on TD statistics on outsourcing. Updated discussion on ISO 9000
Bank and its use of social media. New content pertaining to standards.
the downsides of social media, including new key term • Section 16.6—New discussion on managing micromanagers.
“FOMO” and a discussion of microaggressions and recent
• Section 16.7—Updated Table 16.2 with statistics for GDP
threats to cybersecurity, including attacks at Target, Equifax,
through 2018. Updated statistics on productivity growth.
and Verizon. New boxed feature “I wish I didn’t have FOMO.”
New content on processes used to increase productivity,
Updated Table 15.8 to show elements of an effective social
including new key terms “benchmarking” and “best
media policy. New Example box illustrating samples of social
practices.” Updated content on managing individual
media policies at IBM, Best Buy, McDonald’s, Walmart,
productivity.
Washington Post, and Intel.
• Section 15.5—New statistics on the cost of poor
Readiness.
communication. Expanded the discussion of empathy.
Updated and expanded Table 15.11, which discusses rules • New Management in Action case: Is Tesla Out of Control?
for business writing. Updated research on nondefensive • New Legal/Ethical Challenge: Should Companies use GPS to
communication, empathy, and listening. Track Employees?
• New Career Corner feature: Managing Your Career Readiness. • New continuing case on Uber.
xiv New to the ninth edition

Walkthrough Preface of 9e
Kinicki/Williams, Management: A Practical Introduction, 9e empowers students to develop the

management career skills necessary in everyday life through the practical and relevant application of theory.
Developed to help students learn management with a purpose, K/W 9e takes a student-centered approach.
The revision introduces a new strategic career readiness theme throughout to address employers’
concerns about students graduating without being career ready and extends our emphasis
on practicality. The hallmark strengths that have made it the market best-seller have been maintained
and include:
• A student-centered approach to learning.

• Imaginative writing for readability and reinforcement.
• Emphasis on practicality.
• Resources that work.
Our product covers the principles that most management instructors have come to expect in an
introductory text—planning, organizing, leading, and controlling—plus current issues that students need to
be to be aware of to succeed: customer focus, globalism, diversity, ethics, social media, entrepreneurship,
teams, innovation, artificial intelligence, Big Data, and empowerment.
“ It (the book) is well written and provides relevant examples in the text with great online support. The
TRM (Teaching Resource Manual) is very useful and important in teaching the course. I have found
”
the product to be one of the best I have ever used.
—Jerry D. Stevens,
Texas Tech University
Based on a wealth of instructor feedback and blending Angelo’s scholarship, teaching, publishing, and
management-consulting with Brian’s writing and publishing background, we have worked tirelessly to
create a research-based yet highly readable, practical, and motivational product for the introductory
principles of management course. Our goal to make a difference in the lives of you and your students.
xv

Focus on Career Readiness
Global research shows that employers are finding it hard to find college graduates who possess the
skills needed to be successful. These employers also think that colleges and universities need to do
a better job making students career ready. Our goal in 9e is to contribute to overcoming this problem
with new content and a variety of developmental techniques.
32 PART 1 Introduction
FIGURE 1.4
Building Your Career Readiness
Knowledge
Model of career readiness (K)
©2018 Kinicki and Associates, Inc.
Soft skills
Chapter 1 contains a section devoted to explaining the need, value, and process for becoming career ready. It includes a model of career (S)
Career Career
readiness outcomes
readiness along with a table of competencies desired by employers. Attitudes

(A)
Other
characteristics
(O)
30 PART 1 Introduction The Manager’s Changing Work Environment and Ethical Responsibilities CHAPTER 3 99
TABLE 1.2 Description of KSAO Skills Needed for Career Readiness
1.7 Building Your Career Readiness expensive camera

KSAO equipment behind. He was subsequently told
COMPETENCY photos are in the public domain. “I’m definitely proud of what I
DESCRIPTION
his contract with the department would not be renewed as prom- did,” he says. “I know that I did the right thing. I just hope that
THE BIG PICTURE ised—essentially he was fired—and he has
Knowledge filed a federal lawsuit
Task-Based/Functional more people take
Demonstrated abilitythis as inspiration
to apply that
academic and they knowledge
practical can also speak
in pursuit of
seeking whistle-blower protection, reinstatement, and an ethics uporganizational
and blow and theindividual
whistle goals/assignments.
because it’s an important part of
Companies want to hire career-ready college graduates. In this section we describe a model of career readi-
investigation into Perry and Murray for “public corruption.”134 democracy.”137
ness and offer tips for building your readiness.
Retaliation against whistle-blowers is against federal Technology
Information law; the DOE Effective use of IT and learning new applications as needed.
is calling Edelman’s accusations “ridiculous.” 135
Application FOR DISCUSSION
Whistlebloweraid.org is a nonprofit law firm that assists What are some of the reasons someone might become a whis-
government whistle-blowers like Edelman Cross-Cultural Competency
with confidential AwarenessWhy
tleblower? of cross-cultural
would someonedifferences;
chooserespect
not toforbe?
diverse cultures,
Is that posi- races,
LO 1-7 About 80,000 undergraduate students from over 350 universities across the United ages, genders, and religions; andofdemonstrated
free legal advice, especially if they witness lawbreaking when tion defensible given the value job attitudesopenness, inclusiveness,
like professional
States rated 2017’s most attractive employers. The top 10 were: (1) Google, (2) Walt andethical
ability tostandards?
interact with diverse people.
Define the knowledge, the evidence is classified and don’t know where to turn.136 and Why or why not? What would you have
Disney Company, (3) Apple, (4) Nike, (5) Amazon, (6) J.P. Morgan, (7), Goldman
soft skills, attitudes, and Though he is working with the group, Edelman insists his done in Edelman’s position?
Sachs, (8) Ernst & Young, (9) Deloitte, and (10) FBI.115 Would you like to work at Computational Thinking Ability to use numbers to distill abstract concepts and conduct data-based
other characteristics
these companies or another like them? If so, you need to be career ready. reasoning. Ability to work with and interpret Big Data.
needed for career
Career readiness represents the extent to which you possess the knowledge, skills, and
readiness and discuss Understanding the Business Understanding of the company’s business and strategies and the needs of
attributes desired by employers. How ready do you believe you are? Recent surveys of
how they can be stakeholders, and ability to see how your work fits into the larger
college graduates and recruiters reveal a big gap in the degree of readiness each group
developed. organizational puzzle.
perceives in students. Figure 1.3 shows the results of a study of 400 employers and 613
college students. The majority of students rated themselves as career-ready on 11 of 17 In exposing unethical behavior, then, it’s important to be clear why you’re doing it
New Media Literacy Ability to develop, evaluate, and use new media forms, and to apply these
skills, while the majority of employers did not perceive students to be well-prepared on (trying to help the company or just get someone in trouble), media not report something for
for persuasive communication. Ability to stay up-to-date with the latest
any of the skills.116 The three largest gaps were in critical/analytical thinking, written the wrong reason (discuss your concerns with someone whomedia has trends
similar andvalues),
leverage and
them in the interest of the organization.
communication, and locating, organizing, and evaluating information, skills that are follow proper channels (like addressing the supervisor of the supposed culprit). Don’t
very important to employers.117 Other studies have similarly demonstrated that employ- try to reportSoft
externally
Skills (lashing out on Facebook, for
Critical Thinking/Problem instance)
Sound reasoning speaking
without to
to analyze situations, make decisions, and solve problems.
ers see a major skills gap in college students’ interpersonal skills.118 those who might resolve the problem. 138
Solving Ability to obtain, interpret, and analyze both qualitative and quantitative
You’ll want to close these gaps for three reasons: Some people view ethics in ideal terms, which means that information
ethical principles or stan-
while creatively solving problems.
1. To get a job and earn more money. Today’s jobs require greater interpersonal or dards apply universally across situations and time. Others, however, take a relativistic
soft skills, and employers are willing to pay higher salaries to those possessing view and believe that what is ethical dependsCommunication
Oral/Written on the situation. These
Ability differences
to effectively expresscan
your thoughts, ideas, and messages to diverse
them.119 create conflict among managers trying to make decisions. people in oral and written form. Public speaking skills and ability to write/edit
Consider the situation faced by a group of executives working emails,
with letters,
Angeloand technical
to makereports.
a
2. To impress employers with your self-awareness. Companies prefer to hire people decision about opening a new office overseas. Angelo was consulting with a global com-
with realistic perceptions of their own strengths and weaknesses. This under- pany that was dealing with the issue Teamwork/Collaboration
of whether or not it shouldAbilitypay
to work
local effectively
officialswith
forand build collaborative relationships with
scores the need to obtain information about your strengths and weaknesses helping establish a new office overseas. Some executives in the diverse
meetingpeople, work withinthat
concluded a team structure, and manage interpersonal
throughout your career. the company should pay these officials because it was a normal conflict.
cost of doing business
3. To create your own motivation to learn. Studies of human behavior reveal that in this country. Others viewed the situation quite differently. They thought the pay-
people won’t spend time on personal development unless they feel the need. ments amounted to bribes and were totally against the idea.Skill
Leadership Theat company
influencing aultimately
group of people to achieve common goals. Ability to
Overinflated perceptions of career readiness will not motivate you to develop decided that it would not make the payments, which resultedmotivate, in theircoach, and develop
inability to open others.
the attributes that enhance that readiness. You need to motivate yourself to the new office.
learn and develop. Decision
All told, it is important for you to learn Making Ability tendencies.
more about your ethical to collect, process,
Thisand
willanalyze information in order to identify and
choose from alternative solutions that lead to optimal outcomes.
Moreover, these gaps are critical to employers too. Kate Davidson, a reporter for help you to behave in ways that are consistent with your values and beliefs. ●
The Wall Street Journal, concluded that a lack of soft skills “is limiting organizational
productivity,” and “it is becoming increasingly difficult to find applicants who can com-
municate clearly, take initiative, problem-solve and get along with co-workers.”120
Knowing this, we want reading our textbook to help you become career-ready. The pro-
Self-Assessments cess starts with focusing on the ideas and suggestions in this section.
SELF-ASSESSMENT 3.1
kin75117_ch01_002-041.indd 32 CAREER READINESS 12/3/18 6:20 PM
A Model of Career Readiness

Over 66 Self- Assessments allow
Being career-ready is a lifelong students
process requiring to assess
you to continually the extent
learn and develop Assessing My Perspective on Ethics 1. Are your views more idealistic or more relativistic?
in response to changes in organizational needs and skill requirements. It is not a one- 2. What do you think about students cheating on homework
This survey is designed to assess your views about ethics. It
to which they possess aspects
Büler North America, of career
had to say about thereadiness.
career readiness
time event that stops after graduation. Consider what René Steiner, President/CEO of
“Realize that learning is not
provides feedback about your status on the Career Readiness
“other characteristic” of professionalism/work ethic. 3.
assignments in school? What about cheating on exams?
Are your answers consistent with your score? Explain.
complete when you graduate. Today, more so than in the past, there is the opportunity
competenciestodifferent
desired by employers.
continue to develop, through education, learning company culture, and exploring
areas of business. And, you need to adapt to future needs.” Authors of the 121
Please be prepared to answer these questions if your
instructor has assigned Self-Assessment 3.1 in Connect.
4. What can you say during an interview to demonstrate an
ethical orientation?
Future Work Skills 2020 report similarly concluded that individuals “will increasingly be
Management Theory CHAPTER 2 69
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2.9 Career Corner: Managing Your Career 07/12/18 9:48 PM
Career Corner Readiness
Each chapter concludes with a new section entitled “Career Corner: Figure 2.5 shows the model of career readiness we discussed in Chapter 1. What does a LO 2-9
Managing Your Career Readiness.” This material provides students with chapter on management history have to do with your career readiness? How about its
application to the Knowledge competency of understanding the business? This compe-
Describe how to develop
the career readiness
tency was defined in Table 1.2 as the extent to which you understand a company’s busi-
competency of
practical tips for developing targeted career readiness competencies. ness and strategies and the needs of its stakeholders. It comes into play whenever you
interview for a job.
understanding the
business.
Recruiters expect you to do some research, just as you would for a class assign-
ment. They want you to act like Sherlock Holmes and do some snooping. That’s good
for both you and a potential employer in that it helps identify the likely level of fit
between the two of you. Good fit, in turn, is associated with more positive work atti-
tudes and task performance, lower intentions to quit, and less job-related stress. 65
Moreover, doing your homework on a company makes you a more attractive job can-
didate. It shows interest on your part, and recruiters are impressed by the fact that
you took the time to learn about the business.66 It also prepares you to ask smart
questions, a behavior recruiters want to see. Remember, sometimes it’s the small
things like this that land a job.
FIGURE 2.5
Knowledge Model of Career Readiness
(K)
Concept Mastery Soft skills

(S)
Career Career
New exercises in Connect allow students to demonstrate lower Attitudes

(A)
readiness outcomes
levels of learning regarding career readiness. The Teaching Resource Other

characteristics
Manual provides opportunities for higher levels of learning for career (O)
readiness competencies. So, what does it take to demonstrate that you understand a business? We recom-
mend that you learn the following seven things about a company before showing up at a
job interview:67
1. The company’s mission and vision statements. These statements tell you why
xvi the company exists and what it wants to become or achieve over time. The
question to answer is whether you support these pursuits and would like to be
part of the journey. If you do, you will be a better fit for the company. This is
important because employees are more likely to be productive and stay at a
company when they fit in. For example, if you like outdoor activities, you will
most likely be a better fit at Recreational Equipment, Inc. (REI), which sells
sporting goods, camping gear, and outdoor clothing, than Whole Foods. You
can find this information on the company’s website.
2. The company’s core values and culture. The values an organization endorses
represent the foundation of its culture. You can find clues about this by study-
ing a company’s website. Try to find a list of company values. What do these

Student-Centered Approach to Learning
Our writing style and product design is based on neuroscience research. Greater learning occurs
when information is “chunked” to keep student attention. We break down topics into easily digestible
portions with purposeful pedagogy to make theories and concepts easier to learn and apply. This
accounts for the use of purposeful color, an extensive photo program, bulleted lists, and headings to
appeal to the visual sensibilities, time constraints, and diverse learning styles of today’s students.
PART 3 • PLANNING
Chapter Openers
5 Planning
The Foundation of Successful Management
Each chapter begins with a list of key learning objectives that appeal to
©Olivier Renck/Aurora/Getty Images

After reading this chapter, you should be able to:
students concern about “what’s in it for me?” and to help them read LO 5-1 Discuss the role of strategic management.
with purpose. LO 5-2 Compare mission, vision, and value

statements.
LO 5-3 Discuss the types and purposes of goals and
plans.
LO 5-4 Describe SMART goals and their
implementation.
LO 5-5 Outline the planning/control cycle.
LO 5-6 Describe how to develop the career readiness
competency of proactive learning orientation.
44 PART 1 Introduction
2.1 Evolving Viewpoints: How We Got to Today’s

Management Outlook
THE BIG PICTURE
After studying theory, managers may learn the value of bringing rationality to the decision-making process.
This chapter describes two principal theoretical perspectives—the historical and the contemporary. Studying
management theory provides understanding of the present, a guide to action, a source of new ideas, clues
to the meaning of your managers’ decisions, and clues to the meaning of outside events.
FORECAST What’s Ahead in This Chapter
We describe planning and its link to strategy. We define planning, strategy,
LO 2-1 “The best way to predict the future is to create it,” Peter Drucker said. and strategic management and state why they are important. We deal with the
The purpose of this book is, to the extent possible, to give you the tools to create your fundamentals of planning, including the mission, vision, and value statements,
Describe the development
own future in your career and as a manager. and the three types of planning—strategic, tactical, and operational. We con-
Chapter Sections
of current perspectives on
management. sider goals, operating plans, and action plans; SMART goals, management by
Creating Modern Management: The Handbook of objectives, and cascading goals; and finally the planning/control cycle. We
conclude with a Career Corner that focuses on how you can develop the ca-
Peter Drucker
Within each chapter, sections are organized according to the
Who is Peter Drucker? “He was the creator and inventor of modern management,” says
management guru Tom Peters (author of In Search of Excellence). “In the early 1950s,
reer readiness competency of proactive learning orientation.
major learning objectives. Generous use of headings and

nobody had a tool kit to manage these incredibly complex organizations that had gone
out of control. Drucker was the first person to give us a handbook for that.”5
An Austrian trained in economics and international law, Drucker came to the United
bulleted lists provide students with bite-sized chunks of

States in 1937, where he worked as a correspondent for British newspapers and later
became a college professor. In 1954, he published his famous text The Practice of
Management, in which he proposed the important idea that management was one of the
information to facilitate retention. Each section begins with a

major social innovations of the 20th century and should be treated as a profession, like
medicine or law.
kin75117_ch05_156-187.indd 156 10/12/18 7:56 PM
In this and other books, he introduced several ideas that now underlie the organiza-
tion and practice of management—namely:
recap of the Learning Objective and includes The Big Picture,
■ That workers should be treated as assets.
Forecast
■ That the corporation could be considered a human community.
which presents an overview of how the section addresses the
■
■
That there is “no business without a customer.”
That institutionalized management practices are preferable to charismatic
Shown below the learning objectives, the forecast provides
stated objective.
cult leaders.
True learner. In his 70-year

Many ideas that you will encounter in this book—decentralization, management by
objectives, knowledge workers—are directly traceable to Drucker’s pen. “Without his
a high-level of summary of what is covered in the chapter.
career, Peter Drucker published
over 35 books and numerous
analysis,” says one writer, “it’s almost impossible to imagine the rise of dispersed, globe-
other publications, received the spanning corporations.”6 In our time, Drucker’s rational approach has culminated in
Presidential Medal of Freedom, evidence-based management, as we describe in Section 2.6 in this chapter.
and achieved near rockstar
status for his management
ideas, which influenced Six Practical Reasons for Studying This Chapter
organizations from General
Electric to the Girl Scouts. A true “Theory,” say business professors Clayton Christensen and Michael Raynor, “often gets
“
learner who constantly a bum rap among managers because it’s associated with the word ‘theoretical,’ which
expanded his knowledge, he connotes ‘impractical.’ But it shouldn’t.”7
understood that new
experiences are key to nurturing
After all, what could be more practical than studying different approaches to see
new ideas and new ventures. which work best?
Do you have this kind of
curiosity? ©Jonathan Alcorn/
ZUMAPRESS/Newscom
Many management texts are simply dense and a slog to read. Kinicki is far more approachable in its
Indeed, there are six good reasons for studying theoretical perspectives:
1. Understanding of the present. “Sound theories help us interpret the present, to
understand what is happening and why,” say Christensen and Raynor.8 Or as
pedagogy. It is well organized—the topics are arranged very logically in each chapter. The approach
speaks directly to the student. This personalized, conversational approach engages my students. It has
a new career theme that is critical to help our students demonstrate employable skills. The Teaching
kin75117_ch02_042-075.indd 44 12/3/18 6:41 PM
”
Resource Manual is also the best in its class.
—Todd Korol,
Monroe Community College
“ Layout, highlighted captions, use of boxes, bolding, pictures, and color are all great. It’s easier for
students to read than other textbooks I have used. The key points summaries at end of chapters are
”
useful and it’s overall very user-friendly and engaging.
—Linsey Willis,
Florida Atlantic University
xvii

Extended Emphasis on Practicality
We want this ninth edition to be a cherished resource that students keep as they move into future
courses and their future careers. We give students a great deal of practical advice in addition to The Exceptional Manager CHAPTER 1 21
covering the fundamental

Often these are thought of as “soft skills.”
concepts
As discussed in Section 1.7, developing
needed for success at all levels. of management.
Soft skills are interpersonal “people” skills
your soft skills is
an ongoing, lifelong effort.
During her more than three decades at GM, Barra has demonstrated exceptionally
Manage U
strong soft skills. She has “an ability with people,” says her previous boss, that is critical to
56
GM’s team-first approach. “She is known inside GM as a consensus builder who calls her
staff together on a moment’s notice to brainstorm on pressing issues,” says another report.57
This new feature provides a pedagogical device that gives students practical, actionable
“She’s fiercely intelligent yet humble and approachable,” says a third account. “She’s col-
laborative but is often the person who takes charge. And she’s not afraid to make changes.”58
Among her most significant changes: hiring people with “diverse views, diverse back- Making an Effective Plan for Starting Your Career
tips for applying the material in each chapter. Students will find it interesting and valuable
grounds, diverse experiences,” she says, to try to reshape the company’s notoriously
insular corporate culture and to bring GM into the age of Apple and Google.
The thought of starting a career (or switching to a new
one) can be either intimidating or exciting. What’s the
time you get a result from one of your efforts, whether it’s
positive or negative, that result constitutes feedback on
to their future careers.

difference? Having goals and a plan. how well you’ve selected your goals and how effective
your plan is. If one step doesn’t work out as planned, don’t
The Most Valued Traits in Managers Setting Goals and Making a Plan give up. Rely on your positive attitude and ability to adapt
Here are some steps in the career-management process (more career readiness skills) and realize you have other
Clearly, Barra embodies the qualities sought in star managers, especially top managers. for you to consider as you set about building your career.1 opportunities to succeed. Try broadening your search, and
“The style for running a company is different from what it used to be,” says a top execu- begin again.
Practical Action boxes

1. Identify your options. Use the career readiness
tive recruiter of CEOs. “Companies don’t want dictators, kings, or emperors.”65 Instead skill of self-awareness to write down areas and ideas that Staying Resilient during the Process
of someone who gives orders, they want executives who ask probing questions and interest and are important to you and the functional, cross- Here are a few ideas about what else you can do to keep
invite people to participate in decision making and power sharing. cultural, computational, interpersonal, and other skills you your hopes—and your finances—afloat during the career-
Among the chief skills companies seek in top managers are the following: can offer an employer. Then make a written list of the
Practical Action boxes offer students practical and interesting advice on issues
The ability to motivate and engage others.
■
The Manager’s Changing Work Environment and Ethical Responsibilities CHAPTER 3 99 opportunities available to you through your networking,
earlier work and volunteer experience, and other
building process.
1. Know that it takes time to find a job, especially

resources (don’t forget the alumni and placement offices one that’s a good fit for both you and the company
The ability to communicate.
they will
Workface inoutside
thetheworkplace.
■
at your school). Now match up the two lists to discover that hires you. College graduates spend about six
expensive camera equipment behind. He was subsequently told photos are in the public domain. “I’m definitely proud of what I where you should focus your career-building efforts.
experience
■ United States. months, on average, landing their first job after graduation.2
his contract with the department would not be renewed as prom- did,” he says. “I know that I did the right thing. I just hope that If you are already working, even part-time, stay in the job
■ High energy levels
ised—essentially he wastofired—and
meet the demands
he has of global
filed a federal lawsuittravel and
more a 24/7
people takeworld.
66
●
this as inspiration that they can also speak 2. Explore conditions in your target field. The
while you pursue a new one. It’s always easier to find a job
career readiness skill of understanding the business will
seeking whistle-blower protection, reinstatement, and an ethics up and blow the whistle because it’s an important part of if you have one. If you are not working, consider taking a
guide you to identify important factors like the demand for
investigation into Perry and Murray for “public corruption.”134 democracy.”137 part-time or short-term job to generate some income.
new hires in your chosen field or fields, the competencies
Retaliation against whistle-blowers is against federal law; the DOE since you’ll want to avoid running up credit card debt.
PRACTICAL ACTION Developing Your SoftFOR
is calling Edelman’s accusations “ridiculous.”135
Skills
DISCUSSION
expected of incoming employees, the likely salary range
and opportunities for advancement, and any geographic 2. Create a budget to be sure your income will
Whistlebloweraid.org is a nonprofit law firm that assists What are some of the reasons someone might become a whis- limitations or requirements in the industry to be aware of. If cover your day-to-day expenses. This is a lifelong
government
Are you persistent, whistle-blowers
creative, curious? HowlikedoEdelman
you dealwithwithconfidential
frustra- tleblower?
direction Why would
without someone conflict,
generating choose nottotolead
be? Isand
that posi-
motivate your field or industry is concentrated in one or two parts of habit that will serve you well.
free legal advice, especially if they witness lawbreaking when tion
tion or anxiety? Do you see yourself as part of a larger whole that 136 groups and teams, defensible given
to the value ofothers
influence job attitudes like professional
including “difficult” peo- the country, for instance, be ready to move.
the evidence is classified and don’t know where to turn. and ethical standards? Why or why not? What would you have 3. Avoid making any major financial commitments
gives your work purpose? How do you perceive problems—as
Though he is working with the group, Edelman insists his
ple,done
to offer effective feedback, and to get things done in an at-
in Edelman’s position?
3. Create your action plan. Using what you learned until you’ve actually landed your target job. You
temporary and solvable, or as a personal burden you are doomed mosphere of trust and respect. The seminar topics are a from steps 1 and 2, write a list of actions you can take to won’t know how much you can afford to pay for a car until
achieve your goal of breaking into a new career. You are
to bear? Are you a good listener? Your answers will give you an comprehensive list of essential soft skills employers look for in more likely to achieve your goals if they are “SMART”—
you know your salary, for instance, and you may not want
idea about how well developed some of your soft skills are. college graduates and new hires—and say they seldom find: to be encumbered by a new lease if your dream job
specific, measurable against clear criteria to show requires you to relocate. As long as you have an
More than 90 percent of respondents to a recent Global communication proficiency, which includes verbal, nonverbal, progress, attainable with a chance of 50% or higher, appropriate interview outfit, even splurging on a
Human Capital Trends survey by the consulting firm Deloitte and listening skills; self-understanding, lack of defensiveness, relevant to you, and time bound with target dates for professional wardrobe can wait until you know the dress
completion. We discuss the process of writing SMART
identified soft In
skills like communication,
exposing emotional
unethical behavior, then,understand-
it’s important toand be emotional understanding
clear why you’re doing it and responsiveness; the ability to goals in Section 5.4. Try to keep your steps or goals to a
code at your new employer.
59
ing, and problem
(tryingsolving
to helpasthe a critical
company priority.
or just Many employers
get someone productively
in trouble), not reportmanage conflict;
something for and an understanding of team de- manageable number; somewhere between three and five For Discussion What fields or industries are interesting
the wrong reason (discuss your concerns
say these skills are hard to find in college graduates, who often with someone who has similar
velopment and the values),
role of and
a team player in getting work done. is recommended. Prioritize and schedule them to create or appealing to you as places to work? What news and
followmore
value hard skills proper channels
highly. 60 (like addressing
Companies the supervisor
are eagerly looking of theFor supposed
those whoculprit).
wantDon’t
to learn online and at their own pace, your plan, and if it helps you to give each one a name, by information about these areas can you start tracking now,
tryastowell,
for soft skills report externally
however; (lashing
Google, for out on Facebook,
example, now pri- for instance) without speaking
many inexpensive to
online classes are available.64 These short all means do so. and how will you will do that? Is there anyone in your
those who might resolve the problem.138 network who can help you increase your understanding of
oritizes persistence and curiosity in its hiring process.61 The interactive programs are geared for everyone from CEOs to 4. Track your progress. You’ll see as you study this the way this industry works? If not, how could you find
Some people view ethics in ideal terms, which means that ethical principles or stan- chapter that monitoring or controlling progress toward
good news dards
is thatapply
soft skills can beacross
universally taught.situations
Employers andaretime.
find-Others,entry-level employees.
however, take They cover everything from self-
a relativistic someone?
goals is an inherent part of the planning process. Each
ing it worthview
investing moneythat
and believe to develop
what is these
ethicalabilities
depends in on
their confidence
the situation. Theseto differences
emotional intelligence,
can coaching teams, building
employees.create
A newconflict
study shows
amongthat trainingtrying
managers employees
to makeindecisions.
soft healthy work relationships, handling business etiquette, resolving
skills doesn’t Consider the situation
just marginally improve faced by a group
individual of executives working
performance with
conflicts, Angelomaking,
decision to makereading
a body language, negotiating,
and employee decision about opening
retention; a newbetters
it actually office overseas. Angelo wasdealing
these metrics consulting
withwith
angrya global
customerscom-to becoming a successful leader.
pany that
enough to provide was dealing
a 250% return with
on thethefinancial
issue ofinvestment
whether oranot it should pay local officials for
helping establish a new office overseas. Some executives in the meeting
YOUR CALLconcluded that
company makes in training programs.62
the company should pay these officials because it was a normal cost of doing business
For firmsinthat
thiscan spare their
country. Others employees
viewed the forsituation
three days, quitethedifferently.
Look back
Theyatthought
the firsttheparagraph
pay- in this Practical Action box.
American Management
ments amounted Association
to bribes(AMA)
and wereoffers a soft-skills
totally WhichThe
against the idea. of the soft skills
company listed there would you like to improve by
ultimately
seminar fordecided
managers thatatitall levels
would notincluding
make thefront-line
payments, supervi- the time
which resulted you inability
in their graduate,toinopen
order to make yourself a more attrac-
sors.63 Amongthe new office.they can gain are the ability to give
the skills tive candidate to prospective employers?
Self-Assessments
All told, it is important for you to learn more about your ethical tendencies. This will
help you to behave in ways that are consistent with your values and beliefs. ●
kin75117_ch05_156-187.indd 157 04/12/18 9:23 PM
Self-Assessment evaluations help students relate what they are learning

kin75117_ch01_002-041.indd 21 12/3/18 6:13 PM
SELF-ASSESSMENT 3.1 CAREER READINESS
to their own experiences and promote self-reflection, engagement, and
Assessing My Perspective on Ethics
This survey is designed to assess your views about ethics. It
1.
2.
Are your views more idealistic or more relativistic?
What do you think about students cheating on homework development of their career readiness. Of the 66 total Self-Assessments
provides feedback about your status on the Career Readiness assignments in school? What about cheating on exams?
“other characteristic” of professionalism/work ethic.
Please be prepared to answer these questions if your
3.
4.
Are your answers consistent with your score? Explain.
What can you say during an interview to demonstrate an
included, nearly 40 of them pertain to a career readiness competency. Management Theory CHAPTER 2 53
instructor has assigned Self-Assessment 3.1 in Connect. ethical orientation?
For each of these, students are asked to consider how they might display
Douglas McGregor and Theory X versus Theory Y Having been a college pres-
ident for a time (at Antioch College in Ohio), Douglas McGregor came to realize that
the competencyit wasin
not an
enoughemployment
for managers to try to beinterview.
liked; they also needed to be aware of their
22
attitudes toward employees. Basically, McGregor suggested in a 1960 book, these atti-
tudes could be thought of eitherGlobal “X” or “Y,” which weCHAPTER
Management
introduced in the chapter opener
Testimonials from Millennials

4 125
kin75117_ch03_076-115.indd 99 07/12/18 9:48 PM about people-focused organizations.
Theory X represents a pessimistic, negative view of workers. In this view, workers are
considered to be irresponsible, to be resistant to change, to lack ambition, to hate work,
Each chapter includes two new boxed features I Wish I… and to want to be led rather than to lead.
Theory Y represents a human relations outlook—an optimistic, positive view of work-
…considered the impact ers asofcapable
ethnocentrism.
of accepting responsibility, having self-direction and self-control, and
that provide testimonials from millennials being imaginative and creative.

Jordin Hansen Why
director ofX/Theory
is Theory
strategic Y
a senior
opera-
X/TheoryWhat was not taken
Y Is Important:
notisthe main language
Theinto consideration
principal
for a majority
was thatoffered
contribution
of thehow
English by
company’s
wasthe Theory
globalaffect their
perspective that it helps managers understand their beliefs
about their experiences with effective and tions for a behavior.
global information
technologyto company.
For example,
She
employee dissatisfaction,
stakeholders.
Theory X managers
nomenclature
becausewas
One of the terms
they “solution.”
chosen
are more to betopart
likely
As Jordin explained,
believe employees
of the company
micromanage,
are inherently this word
which leads
lazy.
experienced a clashing of cul- means very different things to people of different cultures.
ineffective management. “I wish I . . .” tures when her company
developed nomenclature as
“The word ‘solution’ in our industry in the United States can
mean a piece of a larger solution; whereas in Europe when you
I’m glad I…
part of a global business talk about solutions it usually means the full end-to-end supply
boxes illustrate real-world examples in which strategy.
…work
An executive team inin
chain or product,” said Jordin.
the an organization
There may have been short-term withbenefitsa Theory Y culture.
to quickly announc-
Jordin Hansen Courtesy Jordin
students recall an instance when they or their Hansen

United States
Cameron
was
together to develop a global
industry as a
put
Monkelien
team leader.
ing and implementing company vocabulary, but the long-term
works
effects in
He
thenegative.
were
believes
banking
his com-
The team had to rethink the strategy several personally taken several risks because I have
enough confidence in my performance and
business strategy for a new times, and the buy-in from stakeholders was minimal. “We took
business within a larger company. Part of thepany doesinvolved
a great job oftwo making
steps employees
forward justat belief in my team that I can go out on a limb for
boss could have better applied certain deciding on company vocabulary. “When youallrun
strategy
levels feel included
a global orga- and Perhaps
empowered.
to take fourteen steps back,” said Jordin.
the most negative impact of presenting company them and for myself,” said Cameron. But ulti-
nization, having consistent nomenclature in howCameron
you talk works
about for avocabulary
large company that waswithnota culturally sensitive was a loss of cred- mately, Cameron believes his direct supervisor
management concepts. “I’m glad I . . .” customers,” said Jordin.

popular
Cameron
name
things is extremely important, especially when you have global
puts
and
it, “It
a ibility and trust among stakeholders. “This overstepped cultivates
lot
really
of
has
power,
its head
but,
on
as
its
opinions and the input of the global stakeholders. It ruined
the an environment where employees
feel safe to take risks and make mistakes. “My
The approach that was used to decideshoulders. They give a lot
on the company of tools and
credibility capabili- later down the road that we wantedsupervisor
for anything to does a really good job about not
boxes discuss positive applications of nomenclature was a very top-down approach. ties toThe
team claimed they were listening to outside agers,
everybody—not
butbut
opinions
strategy just
all the way down
really
supervisorssaid
implement,”
to the bottom
everything,
and man-
Jordin. “In a world where relationships coming
this islevel.”
incredibly important.”
are down on us when something goes
wrong. Instead she asks, ‘How can we improve
Cameron feels interconnected with all this going forward?’”
management concepts. moved forward with what they thought was the best decision. Courtesy of Jordin Hansen
aspects of his job because of the documenta-
tion and networking his company has worked
Cameron takes this lesson from his supervi-
sor and works to make sure his own employees
many years to build. “There isn’t a guessing feel safe taking risks. “The first time one of my
Ethnocentric views also affect our purchasing
game wheredecisions.you have toSome figurepeople
out who believe
you that Cameron Monkelien Courtesy employees had a setback was almost two years
we should only purchase products made needin to
our
talkhome country.
to or where you42need
What to are
go toyour
get views Cameron Monkelien
into his role. He felt like it was such a personal
about being an ethnocentric consumer?information.
You can find outsomething
That’s by taking thatSelf-Assessment
a lot of my 4.1. defeat on his part. I had to have a discussion
other jobs didn’t have: a database and network with him where I said, ‘Having a failure does
of people and documents that point you in the right direction in not mean that you are a failure. It means that there is still
SELF-ASSESSMENT 4.1 anyAnother given situation,” said Cameron.
way that the company works to make its employ-
room for growth, room for learning, and room for
improvement.’”
ees feel included is to have monthly meetings where employ- Cameron’s company has taken additional steps to create an
Assessing Your Consumer Ethnocentrism ees can interact with people 1. other
Are you than their direct
surprised supervisors.
by the results? What do environment
they suggest of empowerment by changing some of the job
This helps employees to feelabout like upper management
your purchasing is listen-Whattitles.
decisions? are the “Instead
pros andof being a manager or a supervisor, you get the
This survey is designed to assess your consumer ethnocen-
ing to their concerns and ideas, consandof that they
being an can really make
ethnocentric a
consumer? title of ‘leader’ because it instills the idea that instead of being
trism. Please be prepared to answer thesedifference
questionswithinif your the organization.
instructor has assigned Self-Assessment 4.1 in Connect. 2. How do American companies, associations, and unions employees, you are leading them.”
in charge of your
Cameron also feels safe encourage to take risks and make mistakes
us to be ethnocentric consumers?
rather than fearing the consequences of doing so. “I have Courtesy of Cameron Monkelien
Polycentric Managers—“They Know Underlying Best” Polycentric managers

both Maslow’s and take the view theories is the notion that more job
McGregor’s
that native managers in the foreign offices best understand
satisfaction native
leads to personnel
greater workerand practices,
performance—an idea that is somewhat controver-
and so the home office should leave them alone.
sial, Thus,discuss
as we’ll the attitude of polycentric
in Chapter 11. manag-
xviii ers is nearly the opposite of that of ethnocentric managers.
Geocentric Managers—“What’s Best Is What’s Effective, Regardless of Origin”

Geocentric managers accept that there are differences and similarities between home and
foreign personnel and practices and that they should use whatever techniques are most
effective. Clearly, being an ethno- or polycentric manager takes less work. But the payoff
kin75117_ch02_042-075.indd 53 12/3/18 6:43 PM
for being a geocentric manager can be far greater. ●

kin75117_ch04_116-155.indd 125 08/12/18 7:29 AM
Understanding the Chapter: What Do I Know?
1. How would you explain the difference between 6. What’s the difference between insider trading and a
internal and external stakeholders? Ponzi scheme?
2. Among external stakeholders, what’s the difference 7. How would you summarize Kohlberg’s levels of
between the task environment and the general personal moral development?
environment? 8. What are four ways that organizations can promote
3. Of the 11 groups in the task environment, which five ethics?
do you consider most important, and why? 9. Describe the levels in Carroll’s corporate social
4. Of the six groups in the general environment, which responsibility pyramid. Where does trying to achieve
one do you think has the least importance, and why? sustainability fit in?
5. Distinguish among the four approaches to deciding 10. How would you explain the concept of corporate
ethical dilemmas. governance?
Management in Action cases Management in Action

Rather than using stories about companies, the new Who’s to Blame for College Basketball’s
“Dark Underbelly”?
amateurism and professionalism for two reasons.
The first is money flowing to universities. Companies
such as Nike, Under Armour, and Adidas “pay tens
Management in Action cases now focus on higher Thethe
is “aThey
athletesCollegiate
National are students
just wantorganization
member-led
or being
Athletic
to see the games. dedicated
paid under
Association
Thus,tothe
the table.
(NCAA)
thereward
well- far
There is hope that these indictments will send a
of millions of dollars a year to equip (and, from a
strong message that these behaviors will not be toler-
marketing standpoint, align themselves) with major
beingoutweighs
and lifelong any risk, and the
success of chances
college that the NCAA
athletes.” 188 ated and will be punished to the fullest extent of the
university programs.” 194 These alliances benefit
levels of learning by asking students to solve real wouldinaddress
Founded
market and
legislative
1906, the
of player
andNCAA
attempt“functions
peddling the
administrative
to stop a as lucrative
a general
highestforbidder
authority men’sstretches
and
black law. “With the federal government’s threat of serious
universities due to increased revenues generated by the
punishment, coaches are more likely to operate within
sponsorships, and they earn sports apparel companies
the limits
women’s of credibility.
intercollegiate It can be
athletics” andhard to bite the
“formulates andhand NCAA rules. At the very least, they will think twice,
organizational problems using relevant management that feeds
enforces you.”211
the rules of play for various sports and the
eligibility criteria for athletes.”189
not only exclusive rights to partner with large academic
knowing that indictments, potential jail time and huge
institutions, but also insider access
legal fees are on the table.”218
to the country’s top
NOW WHAT? athletic talent.
concepts. One of the “bedrock principles” of the NCAA is
Justice Joon
maintaining Kimofdescribed
the spirit those indicted
amateur competition. as “assis-
Students
William Sweeney Jr., the Assistant Director-in-
The second reason is money for college athletes.
Charge of the FBI’s New York office, said the “arrests
A particular challenge in NCAA basketball is the reality
are tant coaches to
not allowed of be
major Division athletes,
professional I schoolseducation
with top-tier serve as a warning to others choosing to conduct busi-
that some athletes don’t intend to graduate from
holdsprograms”
top priority, whoand haveall“been
athletesin and around
receive a fairthe game for
chance ness this way in the world of college athletics: We have
college. Due in large219part to the NBA’s “one-and-done”
a long time.
190 All of them had the trust of players they
to compete. The NCAA outlines specific rules ath- your playbook.”
rule prohibiting athletes from playing professionally
letesrecruited.
must follow Young men whoamateur
to maintain looked status
up to and,
themthus,and be-
before their 19th birthday, elite players often attend
lieved to
eligibility their coaches
continue had their
playing best interests
collegiate sports. at heart.”212
Student FOR DISCUSSION
classes for a year until they age into the NBA draft.195
Kim described
athletes are, amonga other scenario of coaches
things, prohibited “takingfromcash Problem Solving Perspective
Apparel sponsors are often overly eager to secure exclu-
bribes,
publicly managerscompanies
endorsing and advisers 191 circling blue-chip pros-
and from receiving 1. What
sive deals is the
with underlying
elite athletes problem
who may in this
earncase from the
coveted
pects for
a salary like athletic
coyotes,participation
and employees or ofbenefits
a globalfrom sports-
spots in federal
the NBA government’s
because theseperspective?
arrangements generate
wear company
prospective agents.192funneling cash to families of high
213 lots of2.money
Why do foryou
thethink
sponsors.
assistant coaches play such a sig-
school recruits.”
Although Kim added,prohibit
NCAA guidelines “Monthcorporate
after month,
the defendants exploited the hoop dreams of athletes nificant role in these scandals?
sponsorships at the individual-athlete level, college ASSISTANT COACHES AND FEDERAL
teamsaround
have the country,
benefited fromallegedly treatingsince
such alliances them1977, as little 3. How do you think the NCAA and the Commission
INDICTMENTS
when more than opportunities
shoe-company executive to Sonny
enrich Vaccaro
themselves through
“signed on College basketball should move forward to prevent
Assistant coaches serve as the primary recruiters of top
bribery
several coachesand fraud
he knewschemes
. . . to. . contracts
. The defendants’
with Nike.” alleged illegal behavior from occurring in the future?
high-school talent and are expected to act as salesper-
conducttonot
According only sullied
Vaccaro, “‘thethe spiritchanged’
world of amateur athletics,
in 1987, sonsApplication of Chapter and
for their universities Content
build strong relationships
when butNike
it showed
signed its contempt for thedeal”
first all-school thousands
to sponsor of players
all with prize recruits.196 They are expected to follow
andUniversity
of the coaches who follow athletic
of Miami’s the rules and With
teams. play the thesegame 1. How do you think the basketball teams’ task environ-
NCAA guidelines, and they do not always do so.
thesaid
deals, right way.”214“you own everything in that school.
Vaccaro, ment, particularly competitors, allies, customers, reg-
In November 2017, four assistant college basketball
That shoe As acompany
result ofisthe nowinvestigation
your business and subsequent in-
partner.” 193 ulators, and media, played into the corruption in the
coaches were among 10 individuals indicted by a fed-
dictments, “the NCAA has established a Commission NCAA?
eral grand jury. Fortune described the lead-up to the
on College
A BLURRY LINEbasketball”
BETWEEN with AMATEURISM
members including “for- 2. Are the
indictments as “ahigh school
detailed andrecruits who accepted
clandestine bribes
FBI investi-
AND mer Secretary of State Condoleezza Rice, former
PROFESSIONALISM fromexposed
apparel alleged
companies and coaches purely victims
gation that under-the-table payments
Chairman of the Joint Chiefs of Staff Gen. Martin in this situation,
Benefits aside, strategic relationships between apparel to agents, coaches, andorparents
should to
their behaviortalented
influence also be con-
Dempsey, and former NBA stars David Robinson and
companies and215universities blur the line between athletessidered unethical?
to choose Explain your
particular answer to
colleges using one of
play
Grant Hill.” Further, the federal courts have stated the four approaches to deciding ethical dilemmas.
112 that these indictments PART 2 areThethe first in a of
Environment series of many
Management 3. What might the NCAA do to promote higher ethi-
that will come to light in the coming months. The FBI
cal standards among its schools, coaches, players,
has set up a tip line where those with knowledge regard-
and allies?
ing these schemes can call and share information.216
Sources believe the ongoing probe will likely implicate 4. How do you think the scandal has and will continue
additional
kin75117_ch03_076-115.indd 112 college programs, sports apparel companies,
to affect customers, players’ attitudes on the court, 12/3/18 6:55 PM
and agents.217 and NCAA sales?
Legal/Ethical Challenge cases Legal/Ethical Challenge

Legal/Ethical Challenge cases ask students to resolve real Should You Apply to Have Your Student
Other big drug makers are not letting profit and limited
Defense” or “Defense to Repayment” sponsored by the
2.Education
Continue Department
funding Alzheimer’s R&D. As a global
offers a lifeline.
Loans Forgiven?
capacity get in their way. A top scientist at Eli Lilly, one of leader in the pharmaceutical
is available forindustry, Pfizer has anob-
ethical challenges faced by managers and organizations. They Student
Pfizer’s
carethanks
loan debttold
competitors,
to increased
of Alzheimer’s
nearly
patients
tripledTimes
Financial
attendance
in thethatlast
is a hugeateconomic
for-profitcost
decade,
“Taking
colleges
to
The program
obligation
tained loanstofrom
affecting
society
millions
thetogovernment’s
of people.
those students
find treatments
This
Direct
who
for diseases
Loan pro-
wouldtoalso be in
gram. “The law says students are entitled forgiveness
help develop students critical thinking and problem-solving
220
along
society with
and nowrising
is notcollege
the timetuition
to giveand
up.”living expenses.
Eli Lilly’s most line with its mission statement and values.
of any existing debt—and, possibly, reimbursement of
For hundreds
advanced Alzheimer’sof thousands
drug failed in buried
a largeintrial
student
in 2016,loan 3.any repaid loans—if
Contribute to agenciesthey
suchcan show
as the that their
National school
Institutes
butdebt, a little has
the company known 1994
vowed programAlzheimer’s
to continue called “Borrower
treat- violated statesolaw
of Health in getting
they them totheir
can continue take studies
out the debt.
of
skills around ethical issues. ment R&D.80 Another U.S. competitor, AstraZeneca, also
remains
114 committed toPART fighting
2 theThe
disease.
Environment of Management
Alzheimer’s.
4. Suggest other options.
SOLVING THE CHALLENGE
What would you do if you were Pfizer’s CEO?
1. Move on to other projects. Pfizer has an obligation to
kin75117_ch03_076-115.indd 114 12/3/18 6:55 PM
its shareholders not to throw money at projects that
prove to be unsuccessful.
Uber Continuing cases Uber Continuing Case

These new cases ask students to synthesize and apply what Learn how Uber’s corporate strategies have changed from those pursued by founder
and CEO Travis Kalanick to those identified by current CEO Dara Khosrowshahi.
they’ve learned across the course to Uber. Based on reviewer Assess your ability to apply concepts discussed in this chapter to the case by going to
Connect.
feedback, we’ve introduced these at the chapter level.
186 PART 3 Planning
kin75117_ch05_156-187.indd 186 04/12/18 10:29 PM
xix
25
27
29
31
33
37 10/12/18 7:59 PM
506 PART 5 Leading
Formal versus Informal Groups

Groups can be either formal or informal.9
■ Formal groups—created to accomplish specific goals. A formal group is a group
assigned by organizations or its managers to accomplish specific goals. A formal
Imaginative Writing for Readability and Reinforcement group may be a division, a department, a work group, or a committee. It may
be permanent or temporary. In general, people are assigned to them according
to their skills and the organization’s requirements.
■ Informal groups—created for friendship. An informal group is a group formed by
people whose overriding purpose is getting together for friendship or a common
interest. An informal group may be simply a collection of friends who hang out
with one another, such as those who take coffee breaks together, or it may be as
Research shows that products written in an imaginative, story-telling
organizedstyle
as a prayersignificantly improve
breakfast, a bowling team, a service club, a company “alumni
group” (for example, former Apple employees), or a voluntary organization.
students’ ability to retain information. We employ numerous journalistic devices to make
What’s important for you as a manager to know is that the material
informal groups can advance
or undercut the plans of formal groups. The formal organization may make efforts, say,
engaging and relevant to students lives. to speed up the plant assembly line or to institute workplace reforms. But these attempts
may be sabotaged through the informal networks of workers who gossip over e-mails
and informal gatherings, such as meeting after work for a beer.10
However, interestingly, informal groups can also be highly productive—even more so
than formal groups.
Informal Groups and Informal Learning: Sharing Knowledge in the

Example boxes EXAMPLE Lunchroom and on Social Media
We utilize numerous Example boxes to As a manager, what would you think if you saw employees Online Peer-to-Peer Networks What about when employ-
making brief conversation near the lunchroom coffeepot? Are ees are in far-flung places? “Sales reps are out in the field
emphasize the practical applications of they talking about the season finale of their favorite show, or is and they’re kind of on islands,” pointed out an Indianapolis
something more productive taking place? Office kitchens have software-firm executive. “It’s a challenge to keep everyone
business. These mini cases use snapshots of been hidden out of sight for generations, an unloved necessity connected.”15 So when the 75 reps started overwhelming
kept stark to make sure workers didn’t linger, says the Los the sales-support staff with questions about product details
real-world companies to explain text concepts. Angeles Times. Companies are now seeing office kitchens in a and client information, the company created a website on
new light. Kitchens are being turned into showplaces intended which the reps could post and answer questions in an infor-
Your Call questions stimulate class discussions to boost morale, encourage collaboration, and create a learn- mal peer-to-peer learning setting.16 These types of portals
ing environment.11 Why the change of heart? can also be used for employees in distant locations to
and help students develop their critical thinking tell each other personal and professional stories to share
Workplace Learning: Mostly Informal experiences. Research has shown
skills. Suggestions for how to use the Example Research has found that 70 percent of that when people talk informally,
workplace learning is informal.12 65 percent of the time they are tell-
boxes are found in the Teaching Resource Organizations are taking notice of this ing stories. So providing an online
phenomenon. For example, Siemens venue for storytelling can be quite
Manual (TRM). managers have placed overhead pro- effective.17
jectors and empty pads of paper in the
lunchroom to facilitate the exchange of
information.13 The highest-performing YOUR CALL
Google employees teach and support Can games (such as the online multi-
those employees looking to improve. player game Second Life) or other
Google certainly has the resources to social media (Facebook, Twitter,
afford fancy training programs. The Instagram, etc.) be used to foster
company instead opts for peer-to-peer informal workplace collaboration?
training in order to foster a culture of Talking it out. Ever worked in a job in which you got a How about allowing employees to
learning that values continuous devel- lot of informal training through conversations over BYOD—“bring your own device” to
coffee? Could this be done with social networking?
opment and the sharing of knowledge ©Jacobs Stock Photography/Photodisc/Getty Images
work, such as their own smartphone
and expertise.14 or tablet?18
kin75117_ch13_502-533.indd 506 12/3/18 4:02 AM
“ Readability is very good for the undergraduate audience. Updates are frequent and
provide current examples.
” —Justin Davis,
University of West Florida
“ The order and quality of information within the textbook (is great). Logical for faculty,
plenty of examples for students; Kinicki provides better detail and examples, and good
”
supplemental materials.
—Alex Williams,
Texas A&M Commerce
xx

Resources That Work
No matter how you teach your course: face-to-face, hybrid, or online—you’re in the driver’s seat. We offer
the most robust set of resources to enhance your Principles of Management course. In addition to our unique
Teaching Resource Manual, packed with additional activities and supplemental teaching tools; PowerPoint
presentations; and Test Bank questions, we have a wealth of assignable resources available in Connect®.
Connect® • Case Analyses and Video Cases—Our assortment of

written and video cases challenge students to analyze
The ninth edition continues to build on the power of concepts as they manifest in scenarios related to a real-
Connect and furthers our quest to help students move from life product or company, fostering students’ ability to
comprehension to application. McGraw-Hill Connect® is a think critically in lecture and beyond. Thought-provoking
personalized teaching and learning tool powered by adaptive questions check the students’ application of the course
technologies so your students learn more efficiently, retain material and develop their workplace readiness skills.
more, and achieve better outcomes. We used this platform to • Manager’s Hot Seat videos—These actor-portrayed videos
create exercises that are auto-graded in order to assist
depict real-life situations where a manager is faced with a
students in developing their career readiness. Here you will
dilemma that needs to be analyzed based on management
find a wide variety of learning resources that develop
concepts. The videos have been a hit throughout the
students’ higher-order thinking skills, including:
years because they put students at the center of
• SmartBook®—As part of Connect, students have access controversial situations and contribute to their use of
to SmartBook®, fueled by LearnSmart, an adaptive critical thinking to solve problems. Eleven new Manager’s
learning and reading tool. SmartBook prompts students Hot Seats have been added to Connect for concepts such
with questions based on the material they are studying. as motivation, decision making, organizational structure,
By assessing individual answers, SmartBook learns what and more. Each Hot Seat includes follow-up multiple-
each student knows and identifies which topics they choice questions that are assignable and auto-gradable.
need to practice. This adaptive technology gives each • Uber Continuing Case—Students understand the
student a personalized learning experience and path to application of and relationship between different concepts
success. SmartBook provides students with a seamless by applying them to the same company throughout the
combination of practice, assessment, and remediation. semester. We conducted an extensive revision to the case
• Click & Drag exercises—These activities help make the based on current events and the need to offer a more
connection between theory and application through flexible method for using it. Instructors now have a
matching, ranking, or grouping. Every Career Corner continuing case on Uber that can be used for every
has an exercise to help you assess students understand- chapter or as a summary case for each part. Each chapter
ing about how to improve targeted career readiness case includes multiple-choice questions that are assignable
competencies. and auto-gradable, as well essay-based questions.
• iSeeIt animated videos—These brief, contemporary • Application-Based Activities—These activities provide
videos offer dynamic student-centered introductions, students valuable practice using problem-solving skills to
illustrations, and animations to guide students through apply their knowledge to realistic scenarios. Students
challenging concepts. Ideal for before class as an progress from understanding basic concepts to using their
introduction, during class to launch or clarify a topic, knowledge to analyze complex scenarios and solve real-
or after class for formative assessment. life problems. Along the way, students see the implications
• Self-Assessments—Designed to promote student self- of their decisions and are provided with feedback on how
awareness and self-reflection, these research-based management theory should be informing their actions.
activities also provide personal and professional They also receive detailed feedback at the conclusion of
development. For this edition, five new assessments the activity. The simulations are assignable and auto-
were created to measure different career readiness gradable. Ten new application-based activities have been
competencies. In addition, new structured feedback added to Connect for concepts such as ethics,
explains how students should interpret their scores. organizational culture, change management, and more.
“ It is the best Management textbook on the market. Most importantly, and the key competitive advantage,
is the Connect material. LearnSmart/SmartBook is above and beyond anything else out there.
”
—Gerald Schoenfeld,
Florida Gulf Coast University

Students—study more efficiently, retain
more and achieve better outcomes.
Instructors—focus on what you love—
teaching.
SUCCESSFUL SEMESTERS INCLUDE CONNECT
For Instructors
You’re in the driver’s seat.
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prebuilt course? Easy. Want to make changes throughout the semester?
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They’ll thank you for it.

Adaptive study resources like SmartBook® help
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dynamic debates. Hear from your peers about the
benefits of Connect at www.mheducation.com/
highered/connect
Make it simple, make it affordable.

Connect makes it easy with seamless integration using any of the
major Learning Management Systems—Blackboard®, Canvas, and
D2L, among others—to let you organize your course in one
convenient location. Give your students access to digital materials
at a discount with our inclusive access program. Ask your
McGraw-Hill representative for more information.
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Solutions for your challenges.

A product isn’t a solution. Real solutions are affordable,
reliable, and come with training and ongoing support
when you need it and how you want it. Our Customer
Experience Group can also help you troubleshoot
tech problems—although Connect’s 99% uptime
means you might not need to call them. See for
yourself at status.mheducation.com

For Students
Effective, efficient studying.
Connect helps you be more productive with your study
time and get better grades using tools like SmartBook,
which highlights key concepts and creates a personalized
study plan. Connect sets you up for success, so you walk
into class with confidence and walk out with better
grades.
©Shutterstock/wavebreakmedia
“made
I really liked this app it
it easy to study when
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Study anytime, anywhere.
Download the free ReadAnywhere app and access
you don't have your textbook
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your online eBook when it’s convenient, even if you’re
in front of you. offline. And since the app automatically syncs with
your eBook in Connect, all of your notes are available
- Jordan Cunningham, every time you open it. Find out more at www.
Eastern Washington University mheducation.com/readanywhere
No surprises.
The Connect Calendar and Reports
tools keep you on track with the work 13 14
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acknowledgments
I have the pleasure of working with one of the best teams in the business. Their dedica-
tion and effort significantly contribute to the quality of this revision. It all begins with
the captain of the team, Michael Ablassmier. As my editorial director he provides
the internal support to launch and manage the revision process. He also spends
much time traveling in support of my products. Thanks for your continuing support
over the last 10 years! To Anne Ehrenworth, product developer, thank you for paying
attention to the details, keeping us all focused on the schedule, and coordinating all the
moving pieces.
To Debbie Claire, executive marketing manager, you are the energizer bunny who works
tirelessly in support of this product. Your creativity, passion, and effort make you the abso-
lute best at your job, and you push me more than anyone to raise my “marketing” game.
Thank you! To Harvey Yep, your knowledge and experience with the production process
keep us on schedule and responsive to all the change requests.
To Patrick Soleymani, your support as my digital faculty consultant is invaluable. Your
work on the Teaching Resource Manual and writing cases were instrumental in creating
essential teaching materials. To Denise Breaux Soignet, your efforts in writing cases and
developing digital activities to assess student learning greatly enhanced the product.
To Sarah Thomas, market development manager, Keri Johnson, content project man-
ager; and Jessica Cuevas, designer, thanks for all you do to in support of the product.
I would also like to thank Elisa Adams for her editorial assistance; Lindy Archambeau,
Barbara Larson, Grace McLaughlin, and Jennifer Muryn for their work on the Teaching
Resource Manual; Shelly Arneson for the PowerPoint slides; and to Ken Carson for his
work on the Self-Assessments for Connect.
To McGraw-Hill company, it is a world-class publisher and I am grateful to be a member
of the family.
Warmest thanks and appreciation go to the individuals who provided valuable input
during the developmental stages of this edition, as follows:
Dr. M. Ruhul Amin, Lynn Becker, Reginald Bruce,

Bloomsburg University of Univeristy of Central Florida University of Louisville
Pennsylvania William Belcher, Regina Cannon,
Joel Andexler, Troy University Tarrant County College
Cuyahoga Community College Jessie Bellflowers, Tara Carr,
Lindy Archambeau, Fayetteville Technical Community University of Wisconsin–Green Bay
Warrington College of Business, College Shari Carpenter,
University of Florida Michael Bento, Eastern Oregon University
Joseph Aranyosi, Owens Community College Anastasia Cortes,
University of Phoenix George Bernard, Virginia Tech
Shelly Arneson, Seminole State College of Florida Justin L. Davis,
Colorado State University Stephen Betts, University of West Florida
Lisa Augustyniak, William Patterson University Carrie L. Devone,
Lake Michigan College Jim Bishop, Mott Community College
Tanya Balcom, New Mexico State University Jennifer Egrie,
Macomb Community College Alison Bolton, Keiser University
Amy S. Banta, Solano Community College Bennie Felts,
Ohio University Anne Brantley, North Carolina Wesleyan College
Valerie Barnett, Central Piedmont Community Charla Fraley,
Kansas State University College Columbus State Community College
xxiv

Dana Frederick, Bobbie Knoblauch, Thomas Philippe,
Missouri State University Wichita State University St. Petersburg College
Patricia Galitz, Todd Korol, Michael Pirson,
Southeast Community College Monroe Community College Fordham University
Barbara Garrell, Zahir Latheef, Beth Polin,
Delaware County Community College University of Houston Downtown Eastern Kentucky University
Terry Girdon, Dave Lanzilla, Elizabeth Prejean,
Pennsylvania College of Technology College of Central Florida Northwestern State University
Lacey Gonzalez-Horan, Barbara Larson, Kenneth Rasheed,
Lehigh Carbon Community College Northeastern University Chattahoochee Technical College
Jan Grimes, Zahir Latheef, Chelsea Hood Reese,
Georgia Southern University University of Houston–Downtown Southeast Community College
William Habacivch, Blaine Lawlor, Martha Robinson,
Central Penn College University of West Florida University of Memphis
Gordon Haley, Benjamin Lipschutz, David Ruderman,
Palm Beach State College Central Penn College University of Colorado–Denver
R. Hall, Charles Lyons, Jerry Schoenfeld,
Tarleton State University University of Georgia Florida Gulf Coast University
Lisa M. Harris, Professor Cheryl Macon, Marina Sebastijanovic,
Southeast Community College Butler County Community College University of Houston
Joanne Hartsell, Zengie Mangaliso, Sarah Shike,
East Carolina University University of Massachusetts–Amherst Western Illinois University
Ahmad Hassan, Christine Marchese, Raj K. Singh,
Morehead State University Nassau Community College University of California–Riverside
Karen H. Hawkins, D. Kim McKinnon, Paula Kirch Smith,
Miami Dade College–Kendall Campus Arizona State University Cincinnati State
Cathy Henderson, Ben McLarty, Dustin Smith, PhD.,
Stephen F. Austin State University Mississippi State Univerisity Webster University
Nhung Hendy, Erin McLaughlin, George E. Stevens,
Towson University University of Alabama–Huntsville Kent State University
Lara Hobson, Christine Miller, Jerry Stevens,
Western Michigan University Tennessee Tech University Texas Tech University
Anne Hoel, Lorianne Mitchell, C. Justice Tillman,
University of Wisconsin–Stout East Tennessee State University Baruch College, City University of
Gregory A. Hoffeditz, Debra L. Moody, New York
Southern Illinois University–Carbondale Virginia Commonwealth University Jim Turner,
James Hopkins, Vivianne Moore, Davenport University
University of Georgia Davenport University Brandi Ulrich,
Tammy Hunt, Byron Morgan, Anne Arundel Community College
University of North Carolina– Texas State University George Valcho,
Wilmington Bossier Parish Community College
Jennifer Muryn,
Perwaiz Ismaili, Robert Morris University Tim Waid,
Metropolitan State University University of Missouri
Troy Nielson,
Jacquelyn Jacobs, Brigham Young University Wendy Walker,
University of Tennessee University of North Georgia
Paul O’Brien,
Paul D. Johnson, Keiser University Charlene Walters,
University of Mississippi Nathan Oliver, Strayer University
Sue Joiner, University of Alabama at Rick Webb,
Tarleton State University Birmingham Johnson County Community College
John Kirn, Rhonda Palladi, Joette Wisnieski,
University of Kentucky Georgia State University Indiana University of Pennsylvania
Acknowledgments xxv
25
27
29
31
33 10/12/18 7:59 PM
Anthony Weinberg, Wallace Alexander Williams Jr., M. Susan Wurtz,
Daymar College Texas A&M University–Commerce University of Northern Iowa
David Wernick, Dr. Linsey Willis, Jan Zantinga,
Florida International University Florida Atlantic University University of Georgia
I would also like to thank the following colleagues who served as manuscript reviewers during the development of
previous editions:
Steven W. Abram, Larry Bohleber, Jack Cichy,

Kirkwood Community College University of Southern Indiana Davenport University
G. Stoney Alder, Melanie Bookout, Anthony Cioffi,
University of Nevada–Las Vegas Greenville Technical College Lorain County Community College
Phyllis C. Alderdice, Robert S. Boothe, Deborah Clark,
Jefferson Community and Technical University of Southern Mississippi Santa Fe Community College
College Carol Bormann Young, J. Dana Clark,
Laura L. Alderson, Metropolitan State University Appalachian State University
University of Memphis Susan M. Bosco, Dean Cleavenger,
Danielle Beu Ammeter, Roger Williams University University of Central Florida
University of Mississippi David Allen Brown, Sharon Clinebell,
William Scott Anchors, Ferris State University University of Northern Colorado
University of Maine at Orono Roger Brown, Loretta Fergus Cochran,
Jeffrey L. Anderson, Northwestern Oklahoma State Arkansas Tech University
Ohio University University Glenda Coleman,
Darlene Andert, Marit Brunsell, South University
Florida Gulf Coast University Madison Area Technical College Ron Cooley,
John Anstey, Jon Bryan, South Suburban College
University of Nebraska at Omaha Bridgewater State University Melissa M. Cooper,
Maria Aria, Becky Bryant, School of Management, Texas
Camden County College Texas Woman’s University Woman’s University
Mona Bahl, Paul Buffa, Gary Corona,
Illinois State University Jefferson College, Missouri Baptist Florida State College
Pamela Ball, University Keith Credo,
Clark State Community College Mark David Burdsall, University of Louisiana–Lafayette
Valerie Barnet, University of Pittsburgh Derek E. Crews,
Kansas State University Neil Burton, Texas Woman’s University
James D. Bell, Clemson University Daniel J. Curtin,
Texas State University–San Barbara A. Carlin, Lakeland Community College
Marcos University of Houston Ajay Das,
Jessie Bellflowers, Pamela Carstens, Baruch College
Fayetteville Technical Community Coe College Tom Deckelman,
College Julie J. Carwile, Owens Community College
Victor Berardi, John Tyler Community College Linda I. DeLong,
Kent State University Daniel A. Cernas Ortiz, University of La Verne
Patricia Bernson, University of North Texas Margaret Deck,
County College of Morris Glen Chapuis, Virginia Tech
David Bess, St. Charles Community Kate Demarest,
University of Hawaii College University of Baltimore
Stephen Betts, Rod Christian, E. Gordon DeMeritt,
William Paterson University Mesa Community College Shepherd University
Randy Blass, Mike Cicero, Kathleen DeNisco,
Florida State University Highline College Erie Community College
xxvi Acknowledgments

Anant R. Deshpande, Lucy R. Ford, Karen H. Hawkins,
SUNY Empire State College Saint Joseph’s University Miami Dade College, Kendall Campus
John DeSpagna, Charla Fraley, Samuel Hazen,
Nassau Community College Columbus State Community College Tarleton State University
Pamela A. Dobies, Gail E. Fraser, Jack Heinsius,
University of Missouri–Kansas City Kean University Modesto Junior College
David Dore, Dana Frederick, Duane Helleloid,
Pima Community College Missouri State University University of North Dakota
Lon Doty, Tony Frontera, Evelyn Hendrix,
San Jose State University Binghamton University Lindenwood University
Ron Dougherty, Dane Galden, Kim Hester,
Ivy Tech Community College/ Columbus State Community College Arkansas State University
Columbus Campus Michael Garcia, Anne Kelly Hoel,
Scott Droege, Liberty University University of Wisconsin–Stout
Western Kentucky University Evgeniy Gentchev, Mary Hogue,
Ken Dunegan, Northwood University Kent State University
Cleveland State University Lydia Gilmore, David Hollomon,
Steven Dunphy, Columbus State Community Victor Valley College
Indiana University Northwest College Tammy Hunt,
Linda Durkin, James Glasgow, University of North Carolina–
Delaware County Community Villanova University Wilmington
College Ronnie Godshalk, Aviad Israeli,
Subhash Durlabhji, Penn State University Kent State University
Northwestern State University of Connie Golden, Edward Johnson,
Louisiana Lakeland Community College University of North Florida
Jack Dustman, Deborah Cain Good, Nancy M. Johnson,
Northern Arizona University University of Pittsburgh Madison Area Technical College
Ray Eldridge, Kris Gossett, Kathleen Jones,
Lipscomb University Mercyhurst University University of North Dakota
Bob Eliason, Marie Gould, Rusty Juban,
James Madison University Horizons University Southeastern Louisiana University
Valerie Evans, Tita Gray, Dmitriy Kalyagin,
Kansas State University Maryland University of Integrative Chabot College
W. Randy Evans, Health Heesam Kang,
University of Tennessee at Ryan Greenbaum, Trident University International
Chattanooga Oklahoma State University– Marvin Karlins,
Paul A. Fadil, Stillwater University of South Florida
University of North Florida Kevin S. Groves, Marcella Kelly,
Crystal Saric Fashant, Pepperdine University Santa Monica College
Metropolitan State University Joyce Guillory, Richard Kimbrough,
Jud Faurer, Austin Community College University of Nebraska–Lincoln
Metropolitan State University of Reggie Hall, Renee N. King,
Denver Tarleton State University Eastern Illinois University
Judy Fitch, Stephen F. Hallam, Shaun C. Knight,
Augusta State University The University of Akron Penn State University
Carla Flores, Marie DK. Halvorsen-Ganepola, Bobbie Knoblauch,
Ball State University University of Notre Dame Wichita State University
Christopher Flynn, Charles T. Harrington, Todd Korol,
University of North Florida Pasadena City College Monroe Community College
David Foote, Santhi Harvey, Leo C. Kotrodimos,
Middle Tennessee State University Central State University NC Wesleyan College
Acknowledgments xxvii
25
27
29
31
33 10/12/18 7:59 PM
Sal Kukalis, Brenda McAleer, John Orife,
California State University–Long University of Maine at Augusta Indiana University of Pennsylvania
Beach Daniel W. McAllister, Eren Ozgen,
Chalmer E. Labig Jr., University of Nevada–Las Vegas Florida State University–Panama City
Oklahoma State University David McArthur, Fernando Pargas,
Wendy Lam, Utah Valley University James Madison University
Hawaii Pacific University Tom McFarland, Jack Partlow,
Robert L. Laud, Mount San Antonio College Northern Virginia Community College
William Paterson University Joe McKenna, Don A. Paxton,
Rebecca Legleiter, Howard Community College Pasadena City College
Tulsa Community College Zack McNeil, John Paxton,
David Leonard, Metropolitan Community College Wayne State College
Chabot College Jeanne McNett, John Pepper,
Chris Levan, Assumption College The University of Kansas
University of Tennessee– Spencer Mehl, Clifford R. Perry,
Chattanooga Coastal Carolina Community College Florida International University
David Levy, Mary Meredith, Sheila Petcavage,
United States Air Force Academy University of Louisiana Cuyahoga Community College–
Chi Lo Lim, Lori Merlak, Western Campus
Northwest Missouri State University Kirkwood Community College Barbara Petzall,
Natasha Lindsey, Douglas Micklich, Maryville University
University of North Alabama Illinois State University Shaun Pichler,
Beverly Little, Christine Miller, Mihaylo College of Business,
Western Carolina University Tennessee Tech University California State University, Fullerton
Guy Lochiatto, Val Miskin, Anthony Plunkett,
MassBay Community College Washington State University Harrison College
Mary Lou Lockerby, Kelly Mollica, Tracy H. Porter,
College of DuPage University of Memphis Cleveland State University
Michael Dane Loflin, Gregory Moore, Paula Potter,
York Technical College Middle Tennessee State University Western Kentucky University
Jessica Lofton, Rob Moorman, Cynthia Preston,
University of Mount Olive Elon University University of Northwestern Ohio
Paul Londrigan, Jaideep Motwani, Ronald E. Purser,
Charles Stewart Mott Community Grand Valley State University San Francisco State University
College Troy Mumford, Gregory R. Quinet,
Tom Loughman, Colorado State University Kennesaw State University
Columbus State University Robert Myers, George Redmond,
Ivan Lowe, University of Louisville Franklin University
York Technical College Christopher P. Neck, Deborah Reed,
Gregory Luce, Arizona State University Benedictine College
Bucks County Community College Patrick J. Nedry, Rosemarie Reynolds,
Margaret Lucero, Monroe County Community College Embry Riddle Aeronautical
Texas A & M–Corpus Christi Francine Newth, University
James Manicki, Providence College H. Lynn Richards,
Northwestern College Margie Nicholson, Johnson County Community College
Christine I. Mark, Columbia College, Chicago Leah Ritchie,
University of Southern Mississippi Salem State College
Thomas J. Norman,
Marcia A. Marriott, California State University–Dominguez Gary B. Roberts,
Monroe Community College Hills Kennesaw State University
Dr. David Matthews, Joanne Orabone, Sean E. Rogers,
SUNY Adirondack Community College of Rhode Island University of Rhode Island
xxviii Acknowledgments

Katherine Rosenbusch, Martin St. John, Tom Voigt Jr.,
George Mason University Westmoreland County Community Judson University
Barbara Rosenthal, College Carolyn Waits,
Miami Dade Community College/ Raymond Stoudt, Cincinnati State
Wolfson Campus DeSales University Bruce C. Walker,
Gary Ross, Barb Stuart, University of Louisiana at Monroe
Cardinal Stritch University Daniels College of Business Tekle O. Wanorie,
Catherine Ruggieri, Robert Scott Taylor, Northwest Missouri State
St. John’s University–Staten Island Moberly Area Community College University
Storm Russo, Virginia Anne Taylor, Charles Warren,
Valencia Community College William Patterson University Salem State College
Cindy Ruszkowski, Wynn Teasley, Kerry Webb,
Illinois State University University of West Florida Texas Woman’s University
William Salyer, Marguerite Teubner, Brian D. Webster,
Illinois State University Nassau Community College Ball State University
Diane R. Scott, Jerry Thomas, Velvet Weems-Landingham,
Wichita State University Arapahoe Community College Kent State University–Geauga
Alex J. Scrimpshire, C. Justice Tillman, Allen Weimer,
Xavier University Baruch College–City University of University of Tampa
Marianne Sebok, New York David A. Wernick,
College of Southern Nevada Jody Tolan, Florida International University
Thomas J. Shaughnessy, University of Southern California, James Whelan,
Illinois Central College Marshall School of Business Manhattan College
Joanna Shaw, Joseph Tomkiewicz, John Whitelock,
Tarleton State University East Carolina University Community College of Baltimore/
Randi Sims, Robert Trumble, Catonsville Campus
Nova Southeastern University Virginia Commonwealth University Eric S. Williams,
Frederick J. Slack, Joy Turnheim Smith, University of Alabama– Tuscaloosa
Indiana University of Elizabeth City State University Joette Wisnieski,
Pennsylvania Isaiah Ugboro, Indiana University of Pennsylvania
Erika E. Small, North Carolina Agricultural & Technical Colette Wolfson,
Coastal Carolina University State University Ivy Tech Community College
Jim Smas, Brandi Ulrich, Wendy V. Wysocki,
Kent State University Anne Arundel Community College Monroe County Community College
Gerald F. Smith, Anthony Uremovic, Carol Bormann Young,
University of Northern Iowa Joliet Junior College Metropolitan State University,
Mark Smith, Barry Van Hook, Minnesota
University of Southwest Arizona State University Ned D. Young,
Louisiana Scot W. Vaver, Sinclair Community College
Shane Spiller, University of Wisconsin–Stout Jan T. Zantinga,
Western Kentucky University Susan Verhulst, University of Georgia
Jeff Stauffer, Grand View University Mary E. Zellmer-Bruhn,
Ventura College Annie Viets, University of Minnesota
George E. Stevens, Prince Mohammad Bin Fahd Mark Zorn,
Kent State University University Butler County Community College
Finally, I would like to thank my wife, Joyce, for being understanding, patient, and encourag-
ing throughout the process of writing this edition. Your love and support helped me endure
the trials of completing this text.
I hope you enjoy reading and applying the book. Best wishes for success in your career.
Angelo Kinicki
Acknowledgments xxix
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contents
Walkthrough Preface of 9e xv 3. Human Skills—“Soft Skills,” the Ability to Interact

Well with People 20
The Most Valued Traits in Managers 21
PART 1 1.6 Seven Challenges to Being an Exceptional
Introduction Manager 22
CHALLENGE #1: Managing for Competitive
CHAPTER ONE Advantage—Staying Ahead of Rivals 23
The Exceptional Manager: What You Do, CHALLENGE #2: Managing for Information
How You Do It 2 Technology—Dealing with the “New Normal” 24
CHALLENGE #3: Managing for Diversity—The Future
1.1 Management: What It Is, What Its Benefits Won’t Resemble the Past 26
Are 4 CHALLENGE #4: Managing for Globalization—The
The Rise of the Die Maker’s Daughter 4 Expanding Management Universe 26
Key to Career Growth: “Doing Things I’ve Never CHALLENGE #5: Managing for Ethical Standards 27
Done Before” 4 CHALLENGE #6: Managing for Sustainability—The
The Art of Management Defined 5 Business of Green 28
Why Organizations Value Managers: The Multiplier CHALLENGE #7: Managing for Happiness and
Effect 6 Meaningfulness 28
The Financial Rewards of Being an Exceptional How Strong Is Your Motivation to Be a Manager? The
Manager 6 First Self-Assessment 29
What Are the Rewards of Studying and Practicing 1.7 Building Your Career Readiness 30
Management? 7
A Model of Career Readiness 30
1.2 What Managers Do: The Four Principal Developing Career Readiness 35
Functions 9 Let Us Help 36
Planning: Discussed in Part 3 of This Book 9
1.8 Career Corner: Managing Your Career
Organizing: Discussed in Part 4 of This Book 9
Readiness 37
Leading: Discussed in Part 5 of This Book 10
Key Terms Used in This Chapter 38
Controlling: Discussed in Part 6 of This Book 10
Key Points 38
1.3 Pyramid Power: Levels and Areas of Understanding the Chapter: What Do I Know? 39
Management 11 Management in Action 39
The Traditional Management Pyramid: Levels and Legal/Ethical Challenge 41
Areas 11
CHAPTER TWO
Three Levels of Management 11
Areas of Management: Functional Managers versus Management Theory: Essential
General Managers 13 Background for the Successful
Managers for Three Types of Organizations: Manager 42
For-Profit, Nonprofit, Mutual-Benefit 14
2.1 Evolving Viewpoints: How We Got to Today’s
Different Organizations, Different Management? 14
Management Outlook 44
1.4 Roles Managers Must Play Successfully 15 Creating Modern Management: The Handbook of
The Manager’s Roles: Mintzberg’s Useful Peter Drucker 44
Findings 15 Six Practical Reasons for Studying This
Three Types of Managerial Roles: Interpersonal, Chapter 44
Informational, and Decisional 17 Two Overarching Perspectives about Management:
1.5 The Skills Exceptional Managers Need 19 Historical and Contemporary 46
1. Technical Skills—The Ability to Perform a Specific 2.2 Classical Viewpoint: Scientific and
Job 19 Administrative Management 47
2. Conceptual Skills—The Ability to Think Scientific Management: Pioneered by Taylor and the
Analytically 19 Gilbreths 47
xxx

Administrative Management: Pioneered by Spaulding, 3.1 The Triple Bottom Line: People, Planet, and
Fayol, and Weber 49 Profit 78
The Problem with the Classical Viewpoint: The Millennials’ Search for Meaning 78
Too Mechanistic 50
3.2 The Community of Stakeholders Inside the
2.3 Behavioral Viewpoint: Behaviorism, Human Organization 79
Relations, and Behavioral Science 51 Internal and External Stakeholders 79
Early Behaviorism: Pioneered by Munsterberg, Follett, Internal Stakeholders 79
and Mayo 51
3.3 The Community of Stakeholders Outside the
The Human Relations Movement: Pioneered by Maslow
and McGregor 52 Organization 82
The Behavioral Science Approach 54 The Task Environment 82
The General Environment 87
2.4 Quantitative Viewpoints: Management Science
and Operations Management 56 3.4 The Ethical Responsibilities Required of You as a
Management Science: Using Mathematics to Solve Manager 92
Management Problems 56 Defining Ethics and Values 93
Operations Management: Being More Effective 57 Four Approaches to Resolving Ethical Dilemmas 95
2.5 Systems Viewpoint 58 White-Collar Crime, SarbOx, and Ethical Training 95
The Systems Viewpoint 59 How Organizations Can Promote Ethics 97
The Four Parts of a System 59 3.5 The Social Responsibilities Required of You as a
Manager 100
2.6 Contingency Viewpoint 61
Corporate Social Responsibility: The Top of the
Gary Hamel: Management Ideas Are Not Fixed, They’re
Pyramid 100
a Process 61
Is Social Responsibility Worthwhile? Opposing and
Evidence-Based Management: Facing Hard Facts,
Supporting Viewpoints 100
Rejecting Nonsense 62
One Type of Social Responsibility: Climate Change,
2.7 Quality-Management Viewpoint 63 Sustainability, and Natural Capital 103
Quality Control and Quality Assurance 63 Another Type of Social Responsibility: Undertaking
Total Quality Management: Creating an Organization Philanthropy, “Not Dying Rich” 104
Dedicated to Continuous Improvement 63 Does Being Good Pay Off? 104
Six Sigma and ISO 9000
3.6 Corporate Governance 106
2.8 The Learning Organization in an Era of Ethics and Corporate Governance 106
Accelerated Change 66
The Need for Trust 106
The Learning Organization: Handling Knowledge and
Modifying Behavior 66 3.7 Career Corner: Managing Your Career
Readiness 108
How to Build a Learning Organization: Three Roles
Managers Play 67 Focus on the Greater Good and on Being More Ethical 108
Become an Ethical Consumer 109
Readiness 69 Key Terms Used in This Chapter 110
Key Points 110
Understanding the Chapter: What Do I Know? 112
Key Points 71
Management in Action 112
Legal/Ethical Challenge 114
CHAPTER FOUR
PART 2 Global Management: Managing across
Borders 116
The Environment of
4.1 Globalization: The Collapse of Time and
Management Distance 118
Competition and Globalization: Who Will Be No. 1
CHAPTER THREE
Tomorrow? 118
The Manager’s Changing Work Environment The Rise of the “Global Village” and Electronic
and Ethical Responsibilities: Doing the Right Commerce 119
Thing 76 One Big World Market: The Global Economy 120
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Cross-Border Business: The Rise of Both Megamergers Three Types of Planning for Three Levels of
and Minifirms Worldwide 121 Management: Strategic, Tactical,
4.2 You and International Management 122 and Operational 166
Why Learn about International Management? 123 5.3 Goals and Plans 169
The Successful International Manager: Geocentric, Long-Term and Short-Term Goals 169
Not Ethnocentric or Polycentric 124 The Operating Plan and Action Plan 169
4.3 Why and How Companies Expand Types of Plans: Standing Plans and Single-Use
Internationally 126 Plans 171
Why Companies Expand Internationally 126 5.4 Promoting Consistencies in Goals: SMART
How Companies Expand Internationally 127 Goals, Management by Objectives, and Goal
Cascading 172
4.4 The World of Free Trade: Regional Economic
Cooperation and Competition 131 SMART Goals 172
Barriers to International Trade 131 Management by Objectives: The Four-Step Process for
Motivating Employees 173
Organizations Promoting International Trade 133
Cascading Goals: Making Lower-Level Goals Align with
Major Trading Blocs: NAFTA and the EU 134
Top Goals 176
Most Favored Nation Trading Status 136
The Importance of Deadlines 177
Exchange Rates 136
5.5 The Planning/Control Cycle 178
4.5 The Value of Understanding Cultural
Differences 139
Readiness 180
The Importance of National Culture 140
Becoming More Proactive 181
Cultural Dimensions: The Hofstede and GLOBE Project
Models 140 Keeping an Open Mind and Suspending
Judgment 181
Other Cultural Variations: Language, Interpersonal
Space, Communication, Time Orientation, Religion, and Key Terms Used in This Chapter 182
Law and Political Stability 144 Key Points 182
U.S. Managers on Foreign Assignments: Why Do They Understanding the Chapter: What Do I Know? 183
Fail? 148 Management in Action 184
Readiness 149
1. Listen and Observe 149 CHAPTER SIX
2. Become Aware of the Context 150 Strategic Management: How Exceptional
3. Choose Something Basic 150 Managers Realize a Grand Design 188
Key Terms Used in This Chapter 151 6.1 Strategic Positioning and Levels of
Key Points 151 Strategy 190
Understanding the Chapter: What Do I Know? 153 Strategic Positioning and Its Principles 190
Levels of Strategy 191
Does Strategic Management Work for Small as Well as
Large Firms? 192
PART 3 6.2 The Strategic-Management Process 193

The Five Steps of the Strategic-Management
Planning Process 193
6.3 Assessing the Current Reality 196
CHAPTER FIVE
SWOT Analysis 196
Planning: The Foundation of Successful Using VRIO to Assess Competitive Potential: Value,
Management 156 Rarity, Imitability, and Organization 199
5.1 Planning and Strategy 158 Forecasting: Predicting the Future 200
Planning, Strategy, and Strategic Management 158 Benchmarking: Comparing with the Best 202
Why Planning and Strategic Management Are 6.4. Establishing Corporate-Level Strategy 203
Important 159 Three Overall Types of Corporate Strategy 203
5.2 Fundamentals of Planning 162 The BCG Matrix 204
Mission, Vision, and Values Statements 163 Diversification Strategy 205
xxxii Contents

6.5 Establishing Business-Level Strategy 206 Stage 4: Implement and Evaluate the Solution
Porter’s Five Competitive Forces 206 Chosen 243
Porter’s Four Competitive Strategies 207 What’s Wrong with the Rational Model? 244
6.6 Executing and Controlling Strategy 209 Nonrational Decision Making: Managers Find It Difficult
to Make Optimal Decisions 244
Executing the Strategy 209
Maintaining Strategic Control 209 7.2 Making Ethical Decisions 247
Execution: Getting Things Done 209 The Dismal Record of Business Ethics 247
The Three Core Processes of Business: People, Road Map to Ethical Decision Making: A Decision
Strategy, and Operations 210 Tree 248
How Execution Helps Implement and Control 7.3 Evidence-Based Decision Making and
Strategy 211 Analytics 250
6.7 Career Corner: Managing Your Career Evidence-Based Decision Making 251
Readiness 213 In Praise of Analytics 252
Why Is Strategic Thinking Important to New “Big Data”: What It Is, How It’s Used 254
Graduates? 213 7.4 Four General Decision-Making Styles 257
Key Terms Used in This Chapter 215 Value Orientation and Tolerance for Ambiguity 257
Key Points 215 1. The Directive Style: Action-Oriented Decision Makers
Understanding the Chapter: What Do I Know? 217 Who Focus on Facts 258
Management in Action 217 2. The Analytical Style: Careful Decision Makers Who
Legal/Ethical Challenge 219 Like Lots of Information and Alternative Choices 258
LEARNING MODULE 1: Entrepreneurship 220 3. The Conceptual Style: Decision Makers Who
Rely on Intuition and Have a Long-Term
LM1.1 Entrepreneurship: Its Foundations and Perspective 258
Importance 221
4. The Behavioral Style: The Most People-Oriented
Entrepreneurship: It’s Not the Same as Decision Makers 258
Self-Employment 222
Which Style Do You Have? 259
Characteristics of Entrepreneurs 224
7.5 Decision-Making Biases and the Use of Artificial
Entrepreneurship Matters across the Globe 226
Intelligence 260
LM1.2 Starting a Business 229
Nine Common Decision-Making Biases: Rules of Thumb,
Businesses Start with an Idea 229 or “Heuristics” 260
Writing the Business Plan 230 The Decision-Making Potential of Artificial
Choosing a Legal Structure 232 Intelligence 262
Obtaining Financing 233 Pros and Cons of Artificial Intelligence 263
Creating the “Right” Organizational Culture and 7.6 Group Decision Making: How to Work with
Design 234 Others 265
Key Terms Used in This Learning Module 237 Advantages and Disadvantages of Group Decision
Key Points 237 Making 265
Groupthink 266
CHAPTER SEVEN Characteristics of Group Decision Making 267
Individual and Group Decision Making: How Group Problem-Solving Techniques: Reaching for
Managers Make Things Happen 238 Consensus 269
More Group Problem-Solving Techniques 269
7.1 Two Kinds of Decision Making: Rational and
Nonrational 240 7.7 Career Corner: Managing Your Career
Decision Making in the Real World 241 Readiness 272
Rational Decision Making: Managers Should Make Improving Your Critical Thinking and
Logical and Optimal Decisions 242 Problem-Solving Skills 272
Stage 1: Identify the Problem or Opportunity— Reflect on Past Decisions 272
Determining the Actual versus the Desirable 242 Key Terms Used in This Chapter 274
Stage 2: Think Up Alternative Solutions—Both the Key Points 274
Obvious and the Creative 242 Understanding the Chapter: What Do I Know? 276
Stage 3: Evaluate Alternatives and Select a Management in Action 276
Solution—Ethics, Feasibility, and Effectiveness 242 Legal/Ethical Challenge 278
Contents xxxiii
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PART 4 8.7 Contingency Design: Factors in Creating
the Best Structure 311
Organizing Three Factors to Be Considered in Designing an
Organization’s Structure 311
CHAPTER EIGHT 1. The Environment: Mechanistic versus Organic
Organizational Culture, Structure, and Organizations—the Burns and Stalker Model 311
Design: Building Blocks of the 2. The Environment: Differentiation versus Integration—
Organization 280 the Lawrence and Lorsch Model 313
3. Linking Strategy, Culture, and Structure 313
8.1 Aligning Strategy, Culture, and Structure 282
How an Organization’s Culture and Structure Are Used
Readiness 314
to Implement Strategy 282
Understanding the Business and Where You “Fit” In 314
8.2 What Kind of Organizational Culture Will You Be
Becoming More Adaptable 315
Operating In? 286
The Three Levels of Organizational Culture 286 Key Terms Used in This Chapter 316
Key Points 316
Four Types of Organizational Culture: Clan, Adhocracy,
Market, and Hierarchy 287
How Employees Learn Culture: Symbols, Stories,
Heroes, Rites and Rituals, and Organizational
Socialization 290
CHAPTER NINE
The Importance of Culture 291
Human Resource Management: Getting the
What Does It Mean to “Fit”? Anticipating a Job
Interview 292
Right People for Managerial Success 322
8.3 The Process of Culture Change 293 9.1 Strategic Human Resource Management 324
1. Formal Statements 293 Human Resource Management: Managing an
2. Slogans and Sayings 293 Organization’s Most Important Resource 324
3. Rites and Rituals 293 Planning the Human Resources Needed 326
4. Stories, Legends, and Myths 294 9.2 Recruitment and Selection: Putting the Right
5. Leader Reactions to Crises 294 People into the Right Jobs 329
6. Role Modeling, Training, and Coaching 294 Recruitment: How to Attract Qualified Applicants 329
7. Physical Design 294 Selection: How to Choose the Best Person for the
Job 333
8. Rewards, Titles, Promotions, and Bonuses 295
9. Organizational Goals and Performance Criteria 295 9.3 Managing an Effective Workforce: Compensation
10. Measurable and Controllable Activities 295 and Benefits 339
11. Organizational Structure 296 Wages or Salaries 339
12. Organizational Systems and Procedures 296 Incentives 339
Don’t Forget about Person–Organization Fit 297 Benefits 339
8.4 Organizational Structure 298 9.4 Orientation and Learning and Development 340
The Organization: Three Types 298 Orientation: Helping Newcomers Learn the Ropes 340
The Organization Chart 298 Learning and Development: Helping People Perform
Better 341
8.5 The Major Elements of an Organization 300
9.5 Performance Appraisal 344
Common Elements of Organizations: Four Proposed by
Performance Management in Human Resources 344
Edgar Schein 300
Performance Appraisals: Are They Worthwhile? 345
Common Elements of Organizations: Three More That
Most Authorities Agree On 301 Two Kinds of Performance Appraisal: Objective and
Subjective 346
8.6 Basic Types of Organizational Structures 304
Who Should Make Performance Appraisals? 347
1. Traditional Designs: Simple, Functional, Divisional,
Effective Performance Feedback 348
and Matrix Structures 304
2. The Horizontal Design: Eliminating Functional Barriers 9.6 Managing Promotions, Transfers, Disciplining,
to Solve Problems 307 and Dismissals 350
3. Designs That Open Boundaries between Organizations: Promotion: Moving Upward 350
Hollow, Modular, and Virtual Structures 309 Transfer: Moving Sideways 351
xxxiv Contents

Disciplining and Demotion: The Threat of Moving 10.5 The Threat of Change: Managing Employee
Downward 351 Fear and Resistance 399
Dismissal: Moving Out of the Organization 351 The Causes of Resistance to Change 399
9.7 The Legal Requirements of Human Resource Ten Reasons Employees Resist Change 400
Management 354 10.6 Career Corner: Managing Your Career
1. Labor Relations 354 Readiness 402
2. Compensation and Benefits 354 Applying Self-Affirmation Theory 402
3. Health and Safety 354 Practicing Self-Compassion 403
4. Equal Employment Opportunity 356
Workplace Discrimination, Affirmative Action, Sexual Key Points 404
Harassment, and Bullying 356 Understanding the Chapter: What Do I Know? 405
9.8 Labor–Management Issues 361 Management in Action 405
How Workers Organize 361 Legal/Ethical Challenge 407
How Unions and Management Negotiate a Contract 362

The Issues Unions and Management Negotiate
About 362 PART 5
Settling Labor–Management Disputes 364 Leading
Readiness 366 CHAPTER ELEVEN
Becoming a Better Receiver 366 Managing Individual Differences and
Key Terms Used in This Chapter 368 Behavior: Supervising People as People 408
Key Points 368 11.1 Personality and Individual Behavior 410
The Big Five Personality Dimensions 410
Legal/Ethical Challenge 373 Core Self-Evaluations 411
Emotional Intelligence: Understanding Your Emotions
CHAPTER TEN and the Emotions of Others 414
Organizational Change and Innovation: 11.2 Values, Attitudes, and Behavior 416
Lifelong Challenges for the Exceptional Organizational Behavior: Trying to Explain and Predict
Manager 374 Workplace Behavior 416
Values: What Are Your Consistent Beliefs and Feelings
10.1 The Nature of Change in Organizations 376 about All Things? 416
Fundamental Change: What Will You Be Called Attitudes: What Are Your Consistent Beliefs and Feelings
On to Deal With? 376 about Specific Things? 416
Two Types of Change: Reactive and Proactive 378 Behavior: How Values and Attitudes Affect People’s
The Forces for Change Outside and Inside the Actions and Judgments 419
Organization 380 11.3 Perception and Individual Behavior 420
10.2 Types and Models of Change 383 The Four Steps in the Perceptual Process 420
Three Kinds of Change: From Least Threatening Five Distortions in Perception 420
to Most Threatening 383 The Self-Fulfilling Prophecy, or Pygmalion Effect 424
Lewin’s Change Model: Unfreezing, Changing, and
11.4 Work-Related Attitudes and Behaviors Managers
Refreezing 384
Need to Deal With 426
A Systems Approach to Change 385
1. Employee Engagement: How Connected Are You to
10.3 Organizational Development: What It Is, Your Work? 426
What It Can Do 389 2. Job Satisfaction: How Much Do You Like or Dislike
What Can OD Be Used For? 389 Your Job? 428
How OD Works 390 3. Organizational Commitment: How Much Do You
The Effectiveness of OD 391 Identify with Your Organization? 428
10.4 Organizational Innovation 392 Important Workplace Behaviors 429
Approaches to Innovation 392 11.5 The New Diversified Workforce 431
An Innovation System: The Supporting Forces for How to Think about Diversity: Which Differences Are
Innovation 394 Important? 431
Contents xxxv

Trends in Workforce Diversity 433 12.6 Using Compensation, Nonmonetary Incentives,
Barriers to Diversity 437 and Other Rewards to Motivate: In Search of the
11.6 Understanding Stress and Individual Positive Work Environment 487
Behavior 441 Is Money the Best Motivator? 487
The Toll of Workplace Stress 441 Motivation and Compensation 487
How Does Stress Work? 442 Nonmonetary Ways of Motivating Employees 489
The Sources of Job-Related Stress 442 12.7 Career Corner: Managing Your Career
Reducing Stressors in the Organization 445 Readiness 494
11.7 Career Corner: Managing Your Career 1. Identify Your “Wildly Important” Long-Term Goal 494
Readiness 448 2. Break Your Wildly Important Goal into
Short-Term Goals 495
Fostering a Positive Approach 448
3. Create a “To-Do” List for Accomplishing Your
Self-Managing Your Emotions 449
Short-Term Goals 495
Key Terms Used in This Chapter 450 4. Prioritize the Tasks 495
Key Points 450
5. Create a Time Schedule 495
6. Work the Plan, Reward Yourself, and
Adjust as Needed 495
Key Points 496
CHAPTER TWELVE
Motivating Employees: Achieving Superior Management in Action 498
Performance in the Workplace 456 Legal/Ethical Challenge 500
12.1 Motivating for Performance 458 CHAPTER THIRTEEN

Motivation: What It Is, Why It’s Important 458
Groups and Teams: Increasing Cooperation,
The Four Major Perspectives on Motivation:
An Overview 460
Reducing Conflict 502
12.2 Content Perspectives on Employee 13.1 Groups versus Teams 504
Motivation 461 Groups and Teams: How Do They Differ? 505
Maslow’s Hierarchy of Needs Theory: Five Levels 461 Formal versus Informal Groups 506
McClelland’s Acquired Needs Theory: Achievement, Types of Teams 507
Affiliation, and Power 463 13.2 Stages of Group and Team Development 510
Deci and Ryan’s Self-Determination Theory: Tuckman’s Five-Stage Model 510
Competence, Autonomy, and Relatedness 464
Punctuated Equilibrium 512
Herzberg’s Two-Factor Theory: From Dissatisfying
Factors to Satisfying Factors 466 13.3 Building Effective Teams 513
1. Collaboration—the Foundation of Teamwork 513
12.3 Process Perspectives on Employee
2. Trust: “We Need to Have Reciprocal Faith in Each
Motivation 469
Other” 514
Equity/Justice Theory: How Fairly Do You Think You’re
3. Performance Goals and Feedback 515
Being Treated in Relation to Others? 469
4. Motivation through Mutual Accountability and
Expectancy Theory: How Much Do You Want and How
Interdependence 516
Likely Are You to Get It? 473
5. Team Composition 516
Goal-Setting Theory: Objectives Should Be Specific and
Challenging but Achievable 475 6. Roles: How Team Members Are Expected to
Behave 517
12.4 Job Design Perspectives on Motivation 478
7. Norms: Unwritten Rules for Team Members 518
Fitting People to Jobs 478
8. Effective Team Processes 520
Fitting Jobs to People 478
Putting It All Together 520
The Job Characteristics Model: Five Job Attributes for
Better Work Outcomes 479 13.4 Managing Conflict 521
The Nature of Conflict: Disagreement Is Normal 521
12.5 Reinforcement Perspectives on Motivation 483
Can Too Little or Too Much Conflict Affect
The Four Types of Reinforcement: Positive, Negative,
Performance? 522
Extinction, and Punishment 483
Three Kinds of Conflict: Personality, Intergroup, and
Using Reinforcement to Motivate Employees 484
Cross-Cultural 523
xxxvi Contents

How to Stimulate Constructive Conflict 524 2. The Path–Goal Leadership Model: House’s
Five Basic Behaviors to Help You Better Handle Approach 559
Conflict 526 So What Do We Know about the Situational
Dealing with Disagreements: Five Conflict-Handling Approaches? 561
Styles 526 14.5 The Uses of Transformational Leadership 563
13.5 Career Corner: Managing Your Career Transformational Leaders 563
Readiness 528 The Best Leaders Are Both Transactional and
Become a More Effective Team Member 528 Transformational 563
Become a More Effective Collaborator 529 Four Key Behaviors of Transformational
Leaders 564
Key Points 530
So What Do We Know about Transformational
Leadership? 567
Management in Action 531 14.6 Three Additional Perspectives 568
Legal/Ethical Challenge 533 Leader–Member Exchange Leadership: Having
Different Relationships with Different
CHAPTER FOURTEEN Subordinates 568
Power, Influence, and Leadership: From The Power of Humility 569
Becoming a Manager to Becoming a Followers: What Do They Want, How Can They
Help? 570
Leader 534
14.1 The Nature of Leadership: The Role of Power Readiness 572
and Influence 536 Becoming More Self-Aware 572
What Is the Difference between Leading and
Managing? 536 Key Terms Used in This Chapter 574
Key Points 574
Managerial Leadership: Can You Be Both a Manager and
a Leader? 537
Coping with Complexity versus Coping with Change: Legal/Ethical Challenge 578
The Thoughts of John Kotter 538
Five Sources of Power 538 CHAPTER FIFTEEN
Common Influence Tactics 540
Interpersonal and Organizational
Match Tactics to Influence Outcomes 542
Communication: Mastering the Exchange of
An Integrated Model of Leadership 542
Information 580
14.2 Trait Approaches: Do Leaders Have Distinctive
Traits and Personal Characteristics? 544 15.1 The Communication Process: What It Is, How It
Positive Task-Oriented Traits and Positive/Negative Works 582
Interpersonal Attributes 544 Communication Defined: The Transfer of Information
What Do We Know about Gender and Leadership? 545 and Understanding 582
Are Knowledge and Skills Important? 548 How the Communication Process Works 583
So What Do We Know about Leadership Traits? 548 Selecting the Right Medium for Effective
Communication 586
14.3 Behavioral Approaches: Do Leaders Show
Distinctive Patterns of Behavior? 550 15.2 How Managers Fit into the Communication
Process 588
Task-Oriented Leader Behaviors: Initiating-Structure
Leadership and Transactional Leadership 550 Formal Communication Channels: Up, Down, Sideways,
and Outward 588
Relationship-Oriented Leader Behavior: Consideration,
Empowerment, Ethical Leadership, and Servant Informal Communication Channels 589
Leadership 551 15.3 Barriers to Communication 592
Passive Leadership: The Lack of Leadership Skills 555 1. Physical Barriers: Sound, Time, Space 592
So What Do We Know about the Behavioral 2. Personal Barriers: Individual Attributes That Hinder
Approaches? 556 Communication 593
14.4 Situational Approaches: Does Leadership Vary 3. Cross-Cultural Barriers 595
with the Situation? 557 4. Nonverbal Communication: How Unwritten and
1. The Contingency Leadership Model: Fiedler’s Unspoken Messages May Mislead 596
Approach 557 5. Gender Differences 598
Contents xxxvii
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15.4 Social Media and Management 600 16.4 Some Financial Tools for Control 650
Social Media Has Changed the Fabric of Our Lives 600 Budgets: Formal Financial Projections 650
Social Media and Managerial and Organizational Financial Statements: Summarizing the Organization’s
Effectiveness 601 Financial Status 651
Downsides of Social Media 608 Audits: External versus Internal 652
Managerial Implications of Texting 611 16.5 Total Quality Management 654
Managerial Considerations in Creating Social Media Deming Management: The Contributions of W. Edwards
Policies 612 Deming to Improved Quality 655
15.5 Improving Communication Effectiveness 615 Core TQM Principles: Deliver Customer Value and Strive
Nondefensive Communication 615 for Continuous Improvement 655
Using Empathy 617 Applying TQM to Services 659
Being an Effective Listener 618 Some TQM Tools, Techniques, and
Being an Effective Writer 619 Standards 661
Being an Effective Speaker 620 Takeaways from TQM Research 663
15.6 Career Corner: Managing Your Career 16.6 Managing Control Effectively 664
Readiness 623 The Keys to Successful Control Systems 664
Improve Your Face-to-Face Networking Skills 623 Barriers to Control Success 665
Key Terms Used in This Chapter 625 16.7 Managing for Productivity 667
Key Points 625 What Is Productivity? 667
Understanding the Chapter: What Do I Know? 626 Why Is Increasing Productivity Important? 668
Management in Action 627 What Processes Can I Use to Increase Productivity? 669
Legal/Ethical Challenge 628 Managing Individual Productivity 670
Readiness 671
PART 6 1. Make Every Day Count 672
2. Stay Informed and Network 672
Controlling
3. Promote Yourself 672
CHAPTER SIXTEEN 4. Roll with Change and Disruption 673
5. Small Things Matter during Interviews 673
Control Systems and Quality Management:
Epilogue: The Keys to Your Managerial Success 674
Techniques for Enhancing Organizational
Effectiveness 630 Key Terms Used in This Chapter 676
Key Points 676
16.1 Control: When Managers Monitor Understanding the Chapter: What Do I Know? 678
Performance 632 Management in Action 678
Why Is Control Needed? 632 Legal/Ethical Challenge 680
Steps in the Control Process 635 LEARNING MODULE 2: The Project Planner’s
Types of Controls 639 Toolkit: Flowcharts, Gantt Charts, and
16.2 Levels and Areas of Control 641 Break-Even Analysis 681
Levels of Control: Strategic, Tactical, and
Tool #1: Flowcharts—for Showing Event Sequences and
Operational 641
Alternate Decision Scenarios 681
Six Areas of Control 641
Tool #2: Gantt Charts—Visual Time Schedules for Work
Controlling the Supply Chain 643 Tasks 683
Control in Service Firms 644 Tool #3: Break-Even Analysis—How Many Items Must
16.3 The Balanced Scorecard and Strategy You Sell to Turn a Profit? 684
Maps 645
CHAPTER NOTES CN-1
The Balanced Scorecard: A Dashboard-like View of the
Organization 645 NAME INDEX IND-1
Strategy Mapping: Visual Representation of the Path to ORGANIZATION INDEX IND-5
Organizational Effectiveness 648 GLOSSARY/SUBJECT INDEX IND-11
xxxviii Contents

management
NINTH EDITION

PART 3 • PLANNING
5 Planning
The Foundation of Successful Management
©Olivier Renck/Aurora/Getty Images

After reading this chapter, you should be able to:
LO 5-1 Discuss the role of strategic management.

LO 5-2 Compare mission, vision, and value
statements.
LO 5-3 Discuss the types and purposes of goals and
plans.
LO 5-4 Describe SMART goals and their
implementation.
LO 5-5 Outline the planning/control cycle.
LO 5-6 Describe how to develop the career readiness
competency of proactive learning orientation.
FORECAST What’s Ahead in This Chapter

We describe planning and its link to strategy. We define planning, strategy,
and strategic management and state why they are important. We deal with the
fundamentals of planning, including the mission, vision, and value statements,
and the three types of planning—strategic, tactical, and operational. We con-
sider goals, operating plans, and action plans; SMART goals, management by
objectives, and cascading goals; and finally the planning/control cycle. We
conclude with a Career Corner that focuses on how you can develop the ca-
reer readiness competency of proactive learning orientation.
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Making an Effective Plan for Starting Your Career
The thought of starting a career (or switching to a new time you get a result from one of your efforts, whether it’s
one) can be either intimidating or exciting. What’s the positive or negative, that result constitutes feedback on
difference? Having goals and a plan. how well you’ve selected your goals and how effective
your plan is. If one step doesn’t work out as planned, don’t
Setting Goals and Making a Plan give up. Rely on your positive attitude and ability to adapt
Here are some steps in the career-management process (more career readiness skills) and realize you have other
for you to consider as you set about building your career.1 opportunities to succeed. Try broadening your search, and
begin again.
1. Identify your options. Use the career readiness
skill of self-awareness to write down areas and ideas that Staying Resilient during the Process
interest and are important to you and the functional, cross- Here are a few ideas about what else you can do to keep
cultural, computational, interpersonal, and other skills you your hopes—and your finances—afloat during the career-
can offer an employer. Then make a written list of the building process.
opportunities available to you through your networking,
earlier work and volunteer experience, and other 1. Know that it takes time to find a job, especially
resources (don’t forget the alumni and placement offices one that’s a good fit for both you and the company
at your school). Now match up the two lists to discover that hires you. College graduates spend about six
where you should focus your career-building efforts. months, on average, landing their first job after graduation.2
If you are already working, even part-time, stay in the job
2. Explore conditions in your target field. The
while you pursue a new one. It’s always easier to find a job
career readiness skill of understanding the business will
if you have one. If you are not working, consider taking a
guide you to identify important factors like the demand for
part-time or short-term job to generate some income.
new hires in your chosen field or fields, the competencies
since you’ll want to avoid running up credit card debt.
expected of incoming employees, the likely salary range
and opportunities for advancement, and any geographic 2. Create a budget to be sure your income will
limitations or requirements in the industry to be aware of. If cover your day-to-day expenses. This is a lifelong
your field or industry is concentrated in one or two parts of habit that will serve you well.
the country, for instance, be ready to move.
3. Avoid making any major financial commitments
3. Create your action plan. Using what you learned until you’ve actually landed your target job. You
from steps 1 and 2, write a list of actions you can take to won’t know how much you can afford to pay for a car until
achieve your goal of breaking into a new career. You are you know your salary, for instance, and you may not want
more likely to achieve your goals if they are “SMART”— to be encumbered by a new lease if your dream job
specific, measurable against clear criteria to show requires you to relocate. As long as you have an
progress, attainable with a chance of 50% or higher, appropriate interview outfit, even splurging on a
relevant to you, and time bound with target dates for professional wardrobe can wait until you know the dress
completion. We discuss the process of writing SMART code at your new employer.
goals in Section 5.4. Try to keep your steps or goals to a
manageable number; somewhere between three and five For Discussion What fields or industries are interesting
is recommended. Prioritize and schedule them to create or appealing to you as places to work? What news and
your plan, and if it helps you to give each one a name, by information about these areas can you start tracking now,
all means do so. and how will you will do that? Is there anyone in your
network who can help you increase your understanding of
4. Track your progress. You’ll see as you study this the way this industry works? If not, how could you find
chapter that monitoring or controlling progress toward someone?
goals is an inherent part of the planning process. Each
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158 PART 3 Planning
5.1 Planning and Strategy?

THE BIG PICTURE
The first of four functions in the management process is planning, which involves setting goals and deciding
how to achieve them and which is linked to strategy. We define planning, strategy, and strategic manage-
ment. We then describe three reasons strategic management and strategic planning are important.
LO 5-1 The management process, as you’ll recall (from Chapter 1), involves the four management
functions of planning, organizing, leading, and controlling, which form four of the part divi-
Discuss the role of
sions of this book. In this and the next two chapters, we discuss planning and strategy.
strategic management.
Planning, Strategy, and Strategic Management

“Move fast and break things.”
Is that a plan or strategy? No, it’s a slogan. In fact, it used to be Facebook’s mantra
to its software developers, suggesting that “moving quickly is so important that we were
even willing to tolerate a few bugs in order to do it,” as Facebook CEO Mark Zuckerberg
explained.3 (Then, he says, the company realized “that it wasn’t helping us to move
faster because we had to slow down to fix these bugs.”)
Planning, which we discuss in this chapter, is used in conjunction with strategy and
strategic management, as we describe in Chapter 6. Let’s consider some definitions.
Planning: Coping with Uncertainty As we’ve said (Chapter 1), planning is defined
as setting goals and deciding how to achieve them. Another definition: planning is coping
with uncertainty by formulating future courses of action to achieve specified results.4 A plan
is a document that outlines how goals are going to be met. When you make a plan, you
make a blueprint for action that describes what you need to do to realize your goals.
Example: One important type of plan is a business plan, a document that outlines a
proposed firm’s goals, the strategy for achieving them, and the standards for measuring suc-
cess. Here you would describe the basic idea behind your business—the business model,
which outlines the need the firm will fill, the operations of the business, its components and
functions, as well as the expected revenues and expenses. It also describes the industry
you’re entering, how your product will be different, how you’ll market to customers, how
you’re qualified to run the business, and how you will finance your business.
EXAMPLE Why Write a Business Plan?
More than 5 in 10 Millennials say that if they had the resources It was by planning, not by accident, that popular singer
they need, they’d start their own business in the next year. Rihanna recently launched a cosmetics business that got off
Most are attracted to the idea of being their own boss and to a spectacular start and was immediately named one of
making a lot of money by opening a business of their own if the “best inventions of 2017” by Time magazine. Her com-
they could.5 But planning and management control are critical pany, Fenty Beauty (a brand of the luxury label LVMH),
to the success of small businesses as only 33 percent of them boasts a jaw-dropping 40 different shades of foundation in
survive 10 years or more according to the Bureau of Labor order to cater to women of every color and every skin type.
Statistics.6 In its first month in business alone, Fenty far outsold a rival
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Planning CHAPTER 5 159
celebrity line, Kylie Cosmetics, which has earned hundreds Rihanna added close scrutiny of her chosen competitors, Kylie
of millions of dollars in its first two years. In its second and KKW Beauty (Kim Kardashian West’s brand). And she
month, Fenty sales were already up 34% and showing no explored her distribution options, choosing online sales and
signs of slowing. in-store distribution by Sephora. As Time reported, Fenty has
Rihanna experimented with beauty products for years become the brand to beat, as even established companies like
before finally deciding the void in the market—for products L’Oreal begin launching marketing campaigns aimed at its
designed for hard-to-match skin tones—was hers to fill. long-neglected market.7
Among the many business factors for which she had to plan in
starting her company were the target market, women who are YOUR CALL
underserved by existing beauty lines but who spend gener- Got an idea for a business? Think about your pre-launch plan-
ously on makeup (averaging almost $500 a year); her promo- ning process. What questions about your product or service,
tional plan, which included outreach to her 60 million your target market, your promotional plans, and your distribu-
Instagram followers; and her financial plan, which relies on the tion method would you need to answer before you made
backing of LVMH. To her knowledge of existing makeup lines, the leap?
Strategy: Setting Long-Term Direction A strategy, or strategic plan, sets the long-
term goals and direction for an organization. It represents an “educated guess” about
what long-term goals or direction to pursue for the survival or prosperity of the organi-
zation. We hear the word expressed in terms like “Apple’s ultimate strategy . . .” or
“Visa’s overseas strategy . . .” or financial strategy, marketing strategy, and human
resource strategy.
An example of a strategy is “Grow the business organically,” which means “Increase
revenue from existing and new customers rather than from acquiring other companies.”
However, strategy is not something that can be decided on just once. It generally is
reconsidered every year because of ever-changing business conditions.
Strategic Management: Involving All Managers in Strategy In the late 1940s,

most large U.S. companies were organized around a single idea or product line. By the
1970s, Fortune 500 companies were operating in more than one industry and had
expanded overseas. It became apparent that to stay focused and efficient, companies
had to begin taking a strategic-management approach.
Strategic management is a process that involves managers from all parts of the organi-
zation in the formulation and the implementation of strategies and strategic goals. This
definition doesn’t mean that managers at the top dictate ideas to be followed by people
lower down. Indeed, precisely because middle managers in particular are the ones who
will be asked to understand and implement the strategies, they should also help to for-
mulate them.
As we will see, strategic management is a process that involves managers from all
parts of the organization—top managers, middle managers, and first-line managers—in
the formulation, implementation, and execution of strategies and strategic goals to
advance the purposes of the organization. Thus, planning covers not only strategic plan-
ning (done by top managers), but also tactical planning (done by middle managers) and
operational planning (done by first-line managers).
Planning and strategic management derive from an organization’s mission and vision
about itself, as we describe in the next section. (See Figure 5.1.)
Why Planning and Strategic Management

Are Important
An organization should adopt planning and strategic management for three reasons:
They can (1) provide direction and momentum, (2) encourage new ideas, and above all
(3) develop a sustainable competitive advantage.8 Let’s consider these three matters.
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160 PART 3 Planning
FIGURE 5.1
Planning and strategic management
The details of planning and strategic management are explained in Chapters 5 and 6.
1. Establish 2. Assess 3. Formulate 4. Implement 5. Maintain

the mission the current the grand strategy the strategy strategic
and vision reality & strategic, control
and values tactical, &
operational plans
1. Providing Direction and Momentum Some executives are unable even to artic-
ulate what their strategy is.9 Others are so preoccupied with day-to-day pressures that
their organizations can lose momentum. But planning and strategic management can
help people focus on the most critical problems, choices, and opportunities.
If a broad group of employees is involved in the process, that can foster teamwork,
promote learning, and build commitment across the organization. Indeed, as we
describe in Chapter 8, strategy can determine the very structure of the organization—for
example, a top-down hierarchy with lots of management levels, as might be appropriate
for an electricity-and-gas power utility, versus a flat organization with few management
levels and flexible roles, as might suit a fast-moving social media start-up.
Unless a plan is in place, managers may well focus on just whatever is in front of
them, putting out fires—until they get an unpleasant jolt when a competitor moves out
in front because it has been able to take a long-range view of things and act more
quickly. In recent times, this surprise has been happening over and over as companies
have been confronted by some digital or Internet trend that emerged as a threat—as
Amazon.com was to Borders bookstores; as Uber has been to taxi cabs; as Google
News, blogs, and citizen media were to newspapers.
Of course, a poor plan can send an organization in the wrong direction. Bad plan-
ning usually results from faulty assumptions about the future, poor assessment of an
New Barbies. Mattel, maker of the famous Barbie doll,

whose sales have been cut by rival brands, is adding tall,
petite, and curvy dolls to its product line, trying to better
connect with young girls. Parents and interested
grassroots organizations have long been campaigning to
make children’s toys less stereotypical, but social media
have amplified their voices and forced companies to listen.
Mattel and other companies are also bringing out
inexpensive (under $400) 3-D printers that allow children
to create their own plastic toys, including doll-like ones
(monsters). Do you think Mattel should plan for the gradual
elimination of Barbie? ©Mattel/Splash News/Newscom
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organization’s capabilities, ineffective group dynamics, and failure to use management

control as a feedback mechanism.10 And it needs to be said that while a detailed plan
may be comforting, it’s not necessarily a strategy.11
2. Encouraging New Ideas Some people object that planning can foster rigidity,
that it creates blinders that block out peripheral vision and reduces creative thinking
and action. “Setting oneself on a predetermined course in unknown waters,” says one
critic, “is the perfect way to sail straight into an iceberg.”12
Actually, far from being a straitjacket for new ideas, strategic planning can help
encourage them by stressing the importance of innovation in achieving long-range suc-
cess. Management scholar Gary Hamel says that companies such as Apple have been
successful because they have been able to unleash the spirit of “strategy innovation.”
Strategy innovation, he says, is the ability to reinvent the basis of competition within
existing industries—“bold new business models that put incumbents on the
defensive.”13
Some successful innovators are companies creating new wealth in the food and
restaurant industries, where Starbucks Coffee, Trader Joe’s, ConAgra, and Walmart,
for example, developed entirely new grocery product categories and retailing con-
cepts. Starbucks, when entering the Chinese market, decided not to threaten China’s
tea-drinking culture and, instead, introduced drinks with green tea along with a chic
restaurant interior that made young Chinese feel “cool and trendy.”14 GrubHub
Seamless, an online takeout and delivery company, serves customers armed with cell
phones and delivery apps, delivering pizzas and other foods anywhere they want—at
the gym, in the park, on the playground.15 Vending machines are now serving every-
thing from salads to smoothies to caviar, and supermarkets are experimenting with
personalized pricing, using complex shopping data to ascertain the unique needs of
individual customers.16
3. Developing a Sustainable Competitive Advantage Strategic management

can provide a sustainable competitive advantage, which, you’ll recall (from Chapter 1), is
the ability of an organization to produce goods or services more effectively than its
competitors do, thereby outperforming them. We discuss the manner in which compa-
nies create competitive advantage more thoroughly in Chapter 6. You will learn that
companies must have products or services that are valuable, rare, and non-imitable, and
an organization poised to exploit its strengths. In today’s global marketplace, competi-
tive advantage can vary across countries. Uber is a good example.
Uber definitely had, and still has, competitive advantage when it comes to ride shar-
ing in the U.S. It’s a different story when it comes to Africa. A start-up called Taxify
created its own competitive advantage by being the first company to offer motorbike-
hailing. Motorbikes, which are called boda bodas, were a hit because they were more
nimble when traveling through congested streets and communities. Taxify’s success is
clearly linked to its ability to localize it product offerings more quickly than larger firms
like Uber. It also gained competitive advantage by paying drivers with mobile money, “a
technology popular in Uganda and other emerging economies because it allows people
to receive and immediately store funds using a mobile phone.”17 ●
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162 PART 3 Planning
5.2 Fundamentals of Planning

THE BIG PICTURE
Planning consists of translating an organization’s mission and vision into objectives. The organization’s
purpose is expressed as a mission statement, and what it becomes is expressed as a vision statement;
both should represent the organization’s values, expressed in a values statement. From these are derived
strategic planning, then tactical planning, then operational planning.
LO 5-2 Are you hopeful? That’s a good thing. Students who have more hope reportedly have
higher grades and are more apt to finish college.
Compare mission, vision,
“Hope is the belief that the future will be better than the present,” says columnist
and value statements.
Elizabeth Bernstein, “and that you have some power to make it so.” People who are
hopeful “don’t just have a goal or a wish, they have a strategy to achieve it and the moti-
vation to implement their plan.”18
First, however, you must determine your “goal or wish”—that is, your purpose. An
organization must determine its purpose, too—what’s known as its mission. And manag-
ers must have an idea of where they want the organization to go—the vision. Both mis-
sion and vision should express the organization’s values. The approach to planning can
be summarized in the diagram below, which shows how an organization’s mission
becomes translated into action plans. (See Figure 5.2.)
FIGURE 5.2 Mission Vision Values

Making plans statement: statement: statement:
An organization’s reason for “What is our “What do “What values do
being is expressed in a mission reason for we want to we want to
statement. What the being?” become?” emphasize?”
organization wishes to become
is expressed in a vision
statement. The values the
organization wishes to
emphasize are expressed in a
values statement. From these
are derived strategic planning, Strategic Tactical Operational
then tactical planning, and planning: planning: planning:
Done by top Done by Done by first-
finally operational planning. The
managers for middle line managers
purpose of each kind of
the next managers for the next
planning is to specify goals and
1–5 years for the next 1–52 weeks
action plans that ultimately
6–24 months
pave the way toward achieving
an organization’s vision.
Goals Goals Goals
Action plans Action plans Action plans
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Mission, Vision, and Values Statements

The planning process begins with three attributes: a mission statement (which answers
the question “What is our reason for being?”), a vision statement (which answers the
question “What do we want to become?”), and a values statement (which answers the
question “What values do we want to emphasize?”). (See Table 5.1.)
TABLE 5.1 Mission, Vision, and Values Statements
MISSION STATEMENTS: DOES YOUR COMPANY’S MISSION STATEMENT ANSWER

THESE QUESTIONS?
1. Who are our customers?

2. What are our major products or services?
3. In what geographical areas do we compete?
4. What is our basic technology?
5. What is our commitment to economic objectives?
6. What are our basic beliefs, values, aspirations, and philosophical priorities?
7. What are our major strengths and competitive advantages?
8. What are our public responsibilities, and what image do we wish to project?
9. What is our attitude toward our employees?
VISION STATEMENTS: DOES YOUR COMPANY’S VISION STATEMENT ANSWER

“YES” TO THESE QUESTIONS?
1. Is it appropriate for the organization and for the times?

2. Does it set standards of excellence and reflect high ideals?
3. Does it clarify purpose and direction?
4. Does it inspire enthusiasm and encourage commitment?
5. Is it well articulated and easily understood?
6. Does it reflect the uniqueness of the organization, its distinctive competence, what it stands for,
what it’s able to achieve?
7. Is it ambitious?
VALUES STATEMENTS: DOES YOUR COMPANY’S VALUES STATEMENT ANSWER

“YES” TO THESE QUESTIONS?
1. Does it express the company’s distinctiveness, its view of the world?

2. Is it intended to guide all the organization’s actions, including how you treat employees,
customers, etc.?
3. Is it tough, serving as the foundation on which difficult company decisions can be made?
4. Will it be unchanging, as valid 100 years from now as it is today?
5. Does it reflect the beliefs of those who truly care about the organization—the founders, CEO, and
top executives—rather than represent a consensus of all employees?
6. Are the values expressed in the statement limited (five or so) and easy to remember, so that
employees will have them top-of-mind when making decisions?
7. Would you want the organization to continue to hold these values, even if at some point they
become a competitive disadvantage?
Sources: B. Nanus, Visionary Leadership: Creating a Compelling Sense of Direction for Your Organization (San
Francisco: Jossey-Bass, 1992), pp. 28–29; “How to Write a Vision Statement,” Cleverism, March 2, 2017, https://
www.cleverism.com/write-vision-statement; P. M. Lencioni, “Make Your Values Mean Something,” Harvard Business
Review, July 2002, pp. 113–117; and A Loehr, “6 Steps to Defining Your Organizational Values,” Rework, March 7,
2016, https://www.cornerstoneondemand.com/rework/6-steps-defining-your-organizational-values.
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164 PART 3 Planning
The Mission Statement—“What Is Our Reason for Being?”

An organization’s mission is its purpose or reason for being.
Determining the mission is the responsibility of top manage-
ment and the board of directors. It is up to them to formulate
a mission statement, which expresses the purpose of the
organization.
“Only a clear definition of the mission and purpose of the
organization makes possible clear and realistic . . . objectives,”
said Peter Drucker.19 Whether the organization is for-profit or
nonprofit, the mission statement identifies the goods or ser-
vices the organization provides and will provide. Sometimes
it also gives the reasons for providing them (to make a profit
or to achieve humanitarian goals, for example).
The Vision Statement—“What Do We Want to Become?”

A vision is a long-term goal describing “what” an organization
wants to become. It is a clear sense of the future and the actions
needed to get there. “[A] vision should describe what’s hap-
pening to the world you compete in and what you want to do
about it,” says one Fortune article. “It should guide
decisions.”20
After formulating a mission statement, top managers
need to develop a vision statement, which expresses what
the organization should become, where it wants to go
strategically. ©heromen30/Shutterstock
EXAMPLE Mission, Vision, and Values at Coca-Cola
With 500 brands, 21 of which are worth more than $1 billion Our Vision
dollars each, Coca-Cola is the world’s largest beverage com- Our vision serves as the framework for our Roadmap and
pany. Consumers in nearly every country in the world con- guides every aspect of our business by describing what we
sume a Coca-Cola–branded beverage every day, for a total need to accomplish in order to continue achieving sustainable,
of almost 2 billion servings. Headquartered in Atlanta, the quality growth.
company is more than 130 years old. It employs about • People: Be a great place to work where people are
700,000 people worldwide and has received a 100% rating
inspired to be the best they can be.
on the Human Rights Campaign’s corporate equality index
for 11 years in a row. Some of its best-known brands are • Portfolio: Bring to the world a portfolio of quality beverage
Coke, Coke Zero, Powerade, Schweppes, Dasani, Minute brands that anticipate and satisfy people’s desires and
Maid, Fanta, Sprite, Vitamin Water, and Smart Water. Many of needs.
its beverages are available in low-calorie or no-calorie • Partners: Nurture a winning network of customers and
versions.21 suppliers, together we create mutual, enduring value.
The company’s website lists its mission, vision, and values, • Planet: Be a responsible citizen that makes a difference by
which comprise its “Roadmap for winning,” as follows. helping build and support sustainable communities.
• Profit: Maximize long-term return to shareowners while
Our Mission22 being mindful of our overall responsibilities.
Our Roadmap starts with our mission, which is enduring. It • Productivity: Be a highly effective, lean and fast-moving
declares our purpose as a company and serves as the standard
organization.
against which we weigh our actions and decisions.
• To refresh the world . . .
Live Our Values
• To inspire moments of optimism and happiness . . . Our values serve as a compass for our actions and describe
• To create value and make a difference. how we behave in the world.
kin75117_ch05_156-187.indd 164 04/12/18 10:29 PM

• Leadership: The courage to shape a better future YOUR CALL

• Collaboration: Leverage collective genius What do you think of Coca-Cola’s mission, vision, and values?
• Integrity: Be real Are they explicit enough to guide employee behavior and com-
pany actions? Why or why not? Could any of them apply equally
• Accountability: If it is to be, it’s up to me
well to other businesses? Why or why not?
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
The concept of a vision statement also is important for individuals. Harvard pro-
fessor Clayton Christensen believes that creating a personal life vision statement is
akin to developing a strategy for your life. He finds that people are happier and lead
more meaningful lives when they are directed by personal vision statements.23
Do you have a vision for your future career? Is it vague or specific? The following
self-assessment was created to help you evaluate the quality of your career vision
and plan.
Assessing Career Behaviors and Future 2. Write a personal mission and vision statement using ideas
Career Identity discussed in this section. Share it with a friend for feedback.
3. Based on your results, what might you do to enhance
This self-assessment is designed to help you reflect on the
your future career identity? Explain.
vision of your career identity. Please be prepared to answer
these questions if your instructor has assigned Self-Assessment 4. What things can you say during an interview to demonstrate
5.1 in Connect. that you possess the career-readiness competency of
Career Management.
1. What did you learn about your future career identity? Are
you surprised by the results?
The Values Statement—“What Values Do We Want to Emphasize?”

Values, we said in Chapter 3, are the relatively permanent and deeply held underly-
ing beliefs and attitudes that help determine a person’s behavior: integrity, dedica-
tion, teamwork, excellence, compassion, or whatever. Values reflect the qualities
that represent an organization’s deeply held beliefs, highest priorities, and core
guiding principles.
After formulating a vision statement, then, top managers need to develop a values
statement, also called a core values statement, which expresses what the company stands
for, its core priorities, the values its employees embody, and what its products contribute to
the world.24 Values statements “become the deeply ingrained principle and fabric that
guide employee behavior and company decisions and actions—the behaviors the com-
pany and employees expect of themselves,” says former executive Eric Jacobsen.
“Without a statement, the company will lack soul.”25
Are you a gamer? Have you played “World of Warcraft”? If yes, then you will appre-
ciate the values that guide Blizzard Entertainment’s operations. Headquartered in
Irvine, California, the company is a top developer and publisher of wildly popular
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166 PART 3 Planning
entertainment software, including the Warcraft, StarCraft, and Diablo series and the
online-gaming service Battle.net. Its eight core values, described on the company web-
site, are: Gameplay first, commit to quality, be nice—play fair, embrace your inner
geek, every voice matters, think globally, lead responsibly, and learn and grow. These
are unique values and they define what matters most to the company. Would you like
to work at Blizzard?
Three Types of Planning for Three Levels of

Management: Strategic, Tactical, and Operational
Inspiring, clearly stated mission statements and vision statements provide the focal
point of the entire planning process. Then three things happen:
■ Strategic planning by top management. Using their mission and vision state-
ments, top managers do strategic planning—they determine what the organiza-
tion’s long-term goals should be for the next one to five years with the resources
they expect to have available. “Strategic planning requires visionary and direc-
tional thinking,” says one authority.26 It should communicate not only general
goals about growth and profits, but also ways to achieve them. Today, because
of the frequency with which world competition and information technology
alter marketplace conditions, a company’s strategic planning may have to be
done closer to every one or two years than every five. Still, at a big company
like Boeing or Ford or Amazon, top executives cannot lose sight of long-range,
multiyear planning.
A lighthouse is a great metaphor for

strategic planning. A lighthouse provides a
navigational aid and it warns boats about
dangerous or hazardous areas. A strategic
plan similarly provide direction to both
employees and shareholders. It defines
what an organization is trying to achieve
and signifies what markets or opportunities
are not going to be pursued. ©George
Diebold/Blend Images LLC
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EXAMPLE Coca-Cola’s Five-Plus Strategies
Coca-Cola recently announced progress made on five strategic 5. Refocused on our core business model. Among
actions it has taken to revamp its business:27 the company’s more than 500 brands are 20 that
1. Focused on driving revenue and profit growth. In generate more than a billion dollars a year. To retain
emerging markets, the focus was on increasing volume focus on these core products, the company has begun
with affordable products, and in developed markets that franchising out the 18% of its bottling operations
meant improving profitability with more small and pre- that it still handled itself, aiming to reduce that
mium packages. amount to 3%.
2. Invested in our brands and business. More and better A year later, in 2017, the company added a sixth strategy
marketing was the goal of this strategy, which meant a for “our way forward”:28
boost of more than $250 million in the company’s media 6. Keep people at the heart of our company. This means
ad budget. rethinking package sizes in all the company’s markets
3. Became more efficient. “Zero-based work” assumes that and more heavily promoting low- and no-sugar drinks in
organizational budgets begin at zero and must be justified order to reduce sugar intake and help the global fight
every year. One result of adopting this budgeting strategy against obesity.
was realizing “more than $600 million in productivity
improvements in 2015,” some of which was reinvested in YOUR CALL
the company and some of which went to shareholders. Does it surprise you that a large company like Coca-Cola would
4. Simplified our company. Coca-Cola eliminated one layer frequently revisit and revise its strategic plans? Why or why
of management, streamlined some internal business pro- not? Which of the first five goals listed here do you think best
cesses, and connected its regional operations more support(s) goal 6?
closely to headquarters.
■ Tactical planning by middle management. The strategic priorities and policies

are then passed down to middle managers, who must do tactical planning—that
is, they determine what contributions their departments or similar work units can
make with their given resources during the next 6–24 months.
■ Operational planning by first-line management. Middle managers then pass
these plans along to first-line managers to do operational planning—that is, they
determine how to accomplish specific tasks with available resources within the
next 1–52 weeks.
I Wish My Manager…
…and I put more effort into operational planning.
Josephine Schulte works said Josephine, “I wish we would have planned better up front
as a procurement manager in terms of the process of getting the correct information in
for a telecommunications front of the people who needed it so they could understand
company. The company had what needed to happen and the timeline involved with getting
to change its process for a vendor on board.”
onboarding vendors after The new process for onboarding vendors involves making
acquiring another company. sure the vendors have contracts in place if they need one and
The company hit a lot of road routing those contracts for signatures and internal approval.
bumps because of poor oper- What the company did to implement the training of this new
Courtesy Josephine Schulte
ational planning while rolling process was to schedule a few training sessions with managers
out the new process. from each business unit.
“There has been a lot of change management around what “We rolled the process out to a group of people with the
the process is to get vendors on board and bring them onsite,” intent that they would push it down through their business
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168 PART 3 Planning
units, but it is hard to get that to happen,” said Josephine. Each they did not have to go back later and train some employees on
business unit had its own unique questions as to how the pro- an individual basis. This would save time and money.
cess would work for its specific groups. This made it difficult In hindsight, Josephine had several suggestions for what the
to present the same training to one group of representatives to company could have done better when rolling this process out
relay back to each business unit. to the employees. “I would have sent a step-by-step slide deck
“We are very decentralized, so it was hard to figure out who out to the employees right away,” said Josephine. “I would have
to talk to about rolling the process out. We originally spoke gotten as many people as possible across the business units
to the facilities directors, but there wasn’t a good way for and company to attend those virtual trainings. A recorded webi-
them to send the information out to the business units in their nar would have been the best move up front because we were
regions. Essentially, we presented this to about 12 people in a saying the same thing in every training session and it would
company of 100,000 employees—and of course, not every per- have saved a lot of time to record one session.”
son needs to know about this process, but there are quite a Josephine admits that the process could have been much
few that do, and they are all in different business units in differ- smoother if only more planning had gone into the training and
ent locations throughout the country,” said Josephine. implementation of the new system before rolling it out.
One of the biggest hurdles the company had was making sure
Courtesy of Josephine Schulte
that all necessary employees were caught in the initial training so
The three kinds of managers are described further in the following figure. (See Figure 5.3.) ●
FIGURE 5.3
Three levels of management, three types of planning
Each type of planning has different time horizons, although the times overlap because the plans are somewhat elastic.
Top management Strategic planning: Make long-term decisions

1–5 years about overall direction of
president, vice president, organization. Managers need
general managers, to pay attention to
division heads environment outside the
organization, be future oriented,
deal with uncertain
and highly competitive
conditions.
Middle management Tactical planning: Implement policies and plans

functional managers, 6–24 months of top management, supervise
product-line managers, and coordinate activities of
department managers first-line managers below,
make decisions often without
base of clearly defined
information procedures.
First-line management Operational planning: Direct daily tasks of

unit managers, team leaders, 1–52 weeks nonmanagerial personnel;
first-line supervisors decisions often predictable,
following well-defined set of
routine procedures.
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5.3 Goals and Plans

THE BIG PICTURE
The purpose of planning is to set a goal and then an action plan. There are two types of goals, short-term
and long-term, and they are connected by a means-end chain. Types of plans include standing and single-
use plans.
Whatever its type—long term or short term—the purpose of planning is to set a goal and LO 5-3
then to formulate an action plan.
Discuss the types and
purposes of goals and
Long-Term and Short-Term Goals plans.
A goal, also known as an objective, is a specific commitment to achieve a measurable

result within a stated period of time. Goals may be long-term or short-term.
Long-term goals are generally referred to as strategic goals. They tend to span one to
five years and focus on achieving the strategies identified in a company’s strategic plan.
An example is to increase revenue from new customers by 10% over the next 12 months.
Short-term goals are sometimes referred to as tactical or operational goals, or just
plain goals. They generally span 12 months and are connected to strategic goals in a hier-
archy known as a means-end chain.
A means-end chain shows how goals are connected or linked across an organization.
For example, a low-level goal such as responding to customer inquiries in less than
24 hours is the means to accomplishing a higher-level goal of achieving 90% customer
satisfaction.
As we will see later in Section 5.4, goals should be SMART—specific, measurable,
attainable, results-oriented, and with target dates.
The Operating Plan and Action Plan

Larry Bossidy, former CEO of both Honeywell International and Allied Signal, and
global consultant Ram Charan define an operating plan as a plan that “breaks long-term
output into short-term targets” or goals.29 In other words, operating plans turn strategic
plans into actionable short-term goals and action plans.
An action plan defines the course of action needed to achieve a stated goal. Whether
the goal is long-term or short-term, action plans outline the tactics that will be used to
achieve a goal. Each tactic also contains a projected date for completing the desired
activities (read about Amanda Lawrence’s experience in the I’m Glad . . . feature).
I’m Glad I…
…developed an action plan.
Amanda Lawrence served as the president of a nonprofit orga- long-term goals in place, she was able to develop action plans
nization for women in business. She was in charge of planning and begin delegating tasks to others based on their skillsets.
a first annual fundraising event for her organization, and the “Planning was integral for an event that had never been
action plan that she developed resulted in a successful event done before. I had to start with the big picture of what the
that has been running for almost 10 years. goals and objectives of the event were, and then figure out
Amanda began by looking at the big picture to get a better how to reach those goals and determine who was going to
idea of the long-term goal of the project. Once she had take care of each area of the event,” said Amanda.
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170 PART 3 Planning
There were several things uncovered cocktail hour. We planned for people to have
that Amanda had to think about umbrellas to walk the guests from their cars to the venue if it
when organizing the event, from rained,” said Amanda. “We talked through all of our contin-
venue and keynote speakers to gency plans ahead of time.”
alternate weather plans. Once plans were in place, Amanda began to delegate a per-
“We had to find a venue based son to each area of the event. “I took on the venue and the
on how many people we expected catering, and then we discussed what each board member’s
would attend an event like this. individual strengths were and what they felt they could help
We had to determine how much the most with,” said Amanda. “One of our board members had
we wanted to charge for the tick- some experience with selling tickets for another event, so she
ets—did we want this to be a $20 took on the research to determine what the best way for us to
per ticket event with a cash bar, or sell tickets would be. We had someone else who felt comfort-
Courtesy Amanda Lawrence
did we want this to be a $200 per able approaching some corporate females in the area to build
chair black tie event? We deter- our guest list. We had another person who was a marketer by
mined we wanted to be somewhere in the middle of the road, day, so she handled the marketing calendar.”
about $50 per ticket with a good meal and a keynote speaker who The event sold out and raised $5,000 for Amanda’s organi-
would provide value to the event,” said Amanda. zation in the first year alone, and it has been running strong for
“We also had a rainy day plan. We were in Phoenix, Arizona, almost 10 years. The event’s success can be attributed to
so we planned to host the event in April so it would be warm Amanda’s strong planning skills.
but not too warm, but we still had to consider the possibility of
Courtesy of Amanda Lawrence
rain. We planned an outdoor, covered dinner with an outdoor,
EXAMPLE Long-Term and Short-Term Goals at Southwest Airlines
Ranking No. 8 among Fortune’s 2018 Most Admired $543 million in profit sharing in 2017, amounting to more than
Companies, a list on which it has appeared for 24 years in a 5 weeks’ pay per person.32
row, Dallas-based Southwest Airlines has continually achieved The goal of Southwest’s top managers is to ensure that the
its strategic goals and as of 2018 had been profitable for 45 airline is highly profitable, and for years it has followed the
consecutive years.30 general strategy of (a) keeping costs and fares down, to appeal
to budget rather than business
Long-Term Strategic Goals. travelers, (b) offering a supe-
Employee engagement, cus- rior on-time arrival record and
tomer satisfaction, and profit- squeezing more flights per
ability have been key strategic day from every plane, and (c)
goals for Southwest since its keeping passengers happy
inception. Employee engage- with its cheerful cabin crew
ment is created through the and staff. One of the most
company’s corporate culture, important strategic decisions
which focuses on employee Southwest made was to fly
satisfaction and well-being. just one type of airplane—
The page of the company Boeing 737s, 692 of them—to
website announcing its vision Lookalikes. One key to the success of Southwest Airlines is that all the
planes in its fleet have been the same type, Boeing 737s, which saves on hold down training, mainte-
and mission includes this cen- maintenance and training costs. ©Charles Rex Arbogast/AP Images nance, and operating
tral statement about its expenses.33 Competing head
employees: “We are commit- to head with legacy carriers,
ted to provide our Employees a stable work environment with Southwest now flies to key airports of major cities—and even
equal opportunity for learning and personal growth. Creativity on international routes, principally to Latin America and the
and innovation are encouraged for improving the effectiveness Caribbean.
of Southwest Airlines. Above all, Employees will be provided
the same concern, respect, and caring attitude within the orga- Short-Term Goals. Cutting costs and keeping fares low have
nization that they are expected to share externally with every traditionally been key operational goals for Southwest. To
Southwest Customer.”31 Employees were awarded a total of achieve its second operational goal, a superior on-time arrival
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record, the company did away with guaranteed seat reserva- The company plans to improve pre-tax revenue by about $200
tions before ticketing so that no-shows wouldn’t complicate million thanks to a new reservation system and to continue reduc-
(and therefore delay) the boarding process. To attract busi- ing operating costs. It recently announced plans to add Hawaii to
ness travelers, Southwest changed the reservations policy its many destinations.34 Said CEO Gary C. Kelly, “Overall, our
slightly to ensure that passengers paying extra for “business strong financial performance, solid outlook, healthy balance
select” fares would be placed at the front of the line. It also sheet, and significantly lower federal income taxes, provide the
rewards “high-level” business travelers with what is called cash flow to continue to reward our Employees, keep our costs
the “A-List” designation. These individuals get automatic and fares low for our Customers, reinvest in our business, return
check-in and are guaranteed to board with the A-group or value to our Shareholders, and support our communities.”35
immediately before the B-group starts boarding. In addition,
the airline tries to turn planes around in exactly 20 minutes so YOUR CALL
that on-time departures are more apt to produce on-time Do you think the company will continue to achieve its strategic
arrivals. goals? Why or why not?
Types of Plans: Standing Plans and Single-Use Plans

Plans are of two types—standing plans and single-use plans. (See Table 5.2.) Standing
plans cover activities that are repeated or occur frequently over time. A standing plan,
for example, might direct the way employees in a retail store should handle returns.
L.L.Bean recently changed its standing plan on returned items and will now accept
them for only one year from purchase rather than indefinitely as it once did. Forever 21,
which used to accept returns only for exchange or credit, now has a standing plan that
offers refunds36 for returned items.
A single-use plan directs activity, such as a project, that is unlikely to be repeated.
The successful 2018 launch of the Falcon Heavy, the rocket built by entrepreneur Elon
Musk’s space exploration company SpaceX, was a program consisting of a number of
activities37 and directed by a single-use plan. ●
TABLE 5.2 Standing

PLAN DESCRIPTION Plans and Single-Use Plans
There are three types of
• Standing plan For activities that occur repeatedly over a period of time
standing plans and two types
of single-use plans.
• Policy Outlines general response to a designated problem or situation
• Procedure Outlines response to particular problems or circumstances
• Rule Designates specific required action
• Single-use plan For activities not likely to be repeated in the future
• Program Encompasses a range of projects or activities
• Project Has less scope and complexity than a program
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172 PART 3 Planning
5.4 Promoting Consistencies in Goals: SMART

Goals, Management by Objectives, and Goal
Cascading
THE BIG PICTURE
This section discusses SMART goals—goals that are specific, measurable, attainable, results-oriented, and
have target dates. It also briefly discusses a technique for setting goals, management by objectives (MBO),
a four-step process for motivating employees. Finally, it introduces the concept of goal cascading, which
attempts to ensure that higher-level goals are communicated and aligned with the goals at the next levels
down in the organizational hierarchy.
LO 5-4 Anyone can define goals. But as we mentioned earlier, the five characteristics of a good
goal are represented by the acronym SMART.
Describe SMART goals
and their implementation.
SMART Goals
A SMART goal is one that is specific, measurable, attainable, results-oriented, and has
target dates.
Specific Goals should be stated in specific rather than vague terms. The goal “As
many planes as possible should arrive on time” is too general. The goal that “Ninety
percent of planes should arrive within 15 minutes of the scheduled arrival time” is
specific.
FIGURE 5.4 Measurable Whenever possible, goals should be measurable, or quantifiable (as in
Relationship between goal “90% of planes should arrive within 15 minutes”). That is, there should be some way to
difficulty and performance measure the degree to which a goal has been reached.
Source: Adapted from E. A. Locke
Of course, some goals—such as those concerned with improving quality—are not pre-
and G. P. Latham, A Theory of Goal cisely quantifiable. In that case, something on the order of “Improve the quality of cus-
Setting and Task Performance
(Englewood Cliffs, NJ: Prentice
tomer relations by instituting 10 follow-up telephone calls every week” will
Hall, 1990). do. You can certainly quantify how many follow-up phone calls were made.
High Attainable Goals should be challenging, of course, but above all, they
B
Performance
should be realistic and attainable. It may be best to set goals that are quite
ambitious so as to challenge people to meet high standards. Always, however,
A C
the goals should be achievable within the scope of the time, equipment, and
financial support available. (See Figure 5.4.)
Low If too easy (as in “half the flights should arrive on time”), goals won’t
Low Moderate Impossible
impel people to make much effort. If impossible (“all flights must arrive on
time, regardless of weather”), employees won’t even bother trying. Or they
Challenging will try and continually fail, which will end up hurting morale. Or they will
cheat. (An example was the unrealistic goal of cutting wait times for
Performance appointments by more than half at Veterans Affairs hospitals, as revealed
A Committed individuals with in ongoing scandals in which VA administrators were found to have falsi-
adequate ability
fied figures.)38
B Committed individuals who
are working at capacity
C Individuals who lack commitment Results-Oriented Only a few goals should be chosen—say, five for any
to high goals work unit. And they should be results-oriented—they should support the orga-
nization’s vision.
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In writing out the goals, start with the word “To” and follow it with action-oriented
verbs—“complete,” “acquire,” “increase” (“to decrease by 10% the time to get passengers
settled in their seats before departure”).
Some verbs should not be used in your goal statement because they imply activities—
the ways used to accomplish goals (such as having baggage handlers waiting). For exam-
ple, you should not use “to develop,” “to conduct,” “to implement.”
Target Dates Goals should specify the target dates or deadline dates when they are
to be attained. For example, it’s unrealistic to expect an airline to improve its on-time
arrivals by 10% overnight. However, you could set a target date—three to six months
away, say—by which this goal is to be achieved. That allows enough time for lower-level
managers and employees to revamp their systems and work habits and gives them a
clear time frame in which they know what they are expected to do.
EXAMPLE Setting Goals: Are Snapchat’s Goals Clear?39
Snapchat’s user base grew slowly following its first public offer- “the social from the media,” as the company described it, isn’t
ing of stock in early 2017, and investors became concerned necessary a bad idea, given the proliferation of fake news in
that profits might dip. In response, Snapchat’s parent company, social media, but how would it enlarge the app’s user base?
Snap Inc., announced that the app would be redesigned in Snapchat didn’t say.
order to make it easier for a wider audience to use, with the By the fall of 2017, the company’s revenues were still run-
stated goal of increasing its user base in 2018. The announce- ning below expectations, and costs and losses were higher
ment represented a change in the company’s main goal, which than expected. Snap’s stock price seemed stuck at a point
had been to provide an inviting home for chat and video for below its initial offering price of $17 a share. Five million new
people looking for real connections, not to build a platform for users had been added, but analysts had expected 8 million.
billions of users such as Facebook and YouTube have become. Investors were thus still unclear what the company’s goal
Some observers were doubtful that Snapchat could achieve was—and how and even whether it would achieve it. When the
its new goal with the specific design changes it announced. updated Snapchat was rolled out in February 2018, initial reac-
The plan to essentially lump messages and videos from friends tions from users were largely negative, especially among
together in a single hub, separate from content produced by younger fans who called the new version “twisted” and “super
publishers, didn’t convince everyone that the app would now confusing.”40
be easier for new users. CEO Evan Spiegel’s explanation
seemed off-target to some commentators, too. Spiegel spoke YOUR CALL
of the dangers of getting news and information from online Do you think Snapchat’s goal was attainable? Was it communi-
sources that select from a narrow set of sources. Separating cated clearly? What could the company have done better?
Management by Objectives: The Four-Step Process

for Motivating Employees
First suggested by Peter Drucker in 1954, management by objectives has spread largely
because of the appeal of its emphasis on converting general objectives into specific ones
for all members of an organization.41
Management by objectives (MBO) is a four-step process in which (1) managers and
employees jointly set objectives for the employee, (2) managers develop action plans, (3)
managers and employees periodically review the employee’s performance, and (4) the
manager makes a performance appraisal and rewards the employee according to results.
The purpose of MBO is to motivate rather than to control subordinates.
Before we begin discussing these four steps, you may want to consider the quality of
the goal-setting process in a current or former employer. Management by objectives and
goal cascading will not work without an effective goal setting process. The following
self-assessment was developed to provide insight into the quality of goal setting within
an organization.
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174 PART 3 Planning
SELF-ASSESSMENT 5.2
What Is the Quality of Goal Setting within a 1. What are the strengths and weaknesses of goal setting in
Current or Past Employer? the company you selected?
2. Based on your results, what recommendations would you
This self-assessment is designed to assess the quality of goal
provide to senior management about improving the goal-
setting in a company. Please be prepared to answer these
setting process in this company? Explain.
questions if your instructor has assigned Self-Assessment 5.2
in Connect. 3. What actions could you take to improve the goal-setting
process in this company? Be specific.
1. Jointly Set Objectives You sit down with your manager and the two of you
jointly set objectives for you to attain. Research shows that an assigned goal from your
boss is just as effective as setting goals participatively. Moreover, people tend to set their
own personal goals in response to receiving an assigned goal. A team of goal-setting
experts noted that “the assignment of a goal encourages individuals to also set a personal
performance goal, which in turn contributes to their performance.”42 It is important to
remember what we learned about SMART goals. Managers garner greater acceptance
to goal setting when employees believe the goal is attainable and they possess the skills
and resources to achieve it.43 Managers tend to set three types of objectives, shown in
the following table. (See Table 5.3.)
Jointly setting objectives. An important part of MBO is joint manager/subordinate participation in setting objectives.
Have you ever held a job that featured this kind of process? ©Chris Ryan/age fotostock
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TABLE 5.3 Three Types of Objectives Used in MBO: Performance, Behavioral, and Learning
PERFORMANCE OBJECTIVES
Focus Express the objective as an outcome or end-result. Examples “Increase sport utility sales by 10%.” “Reduce food spoilage by 15%.”
BEHAVIORAL OBJECTIVES
Focus Express the objective as the behaviors needed to achieve an outcome. Examples “Greet all potential automobile customers with a
smile and offer to assist.” “Ensure food is stored in seal-proof containers.” “Attend five days of leadership training.” “Learn basics of
Microsoft Office software by June 1.”
LEARNING OBJECTIVES
Focus Express the objective in terms of acquiring knowledge or competencies. Examples “Attend sales training class.” “Learn how the
features in our sports utility vehicles compare to competitors.”
Source: These descriptions were based on G. Latham, G. Seijts, and J. Slocum, “The Goal Setting and Goal Orientation Labyrinth: Effective Ways for
Increasing Employee Performance,” Organizational Dynamics, October–December 2016, pp. 271–277.
We want to briefly focus on the career readiness competency of proactive learning orienta-
tion because it fuels the achievement of learning objectives. Proactive learning orientation
represents a desire to learn and improve one’s knowledge, soft skills, and other character-
istics in pursuit of personal development. Employers value this attitude because it helps
drive the creativity and innovation needed in today’s global economy. They also desire
this competency because the “fast-paced business environment requires employees to
refine and enhance their skills sets throughout their careers.”44 So where do you stand on
this competency? Find out by taking the proactive learning orientation self-assessment.
Do I Have a Proactive Learning Orientation? 2. Based on your results, what might you do to increase the
career readiness competency of proactive learning
This self-assessment is designed to assess the extent to which orientation? Explain.
you possess a proactive learning orientation. Please be pre-
pared to answer these questions if your instructor has assigned 3. What things might you say during an interview to
Self-Assessment 5.3 in Connect. demonstrate that you possess this career readiness
competency?
1. What is your level of learning orientation? How might it
affect a recruiter’s perception of your employability?
2. Develop Action Plan Once objectives are set, employees are encouraged to pre-
pare an action plan for attaining them. Action plans may be prepared for both individu-
als and work units, such as departments. For example, teams of employees at Tornier, a
medical device manufacturer in Amsterdam, meet every 45, 60, and 90 days to create
action plans for completing their goals. Implementation of the plans can take between
six and 18 months depending on the complexity of the goal.45 Setting and using action
plans also reduces procrastination. If this is sometimes a problem for you, break your
goals into smaller and more specific subgoals.46 This will get you going.
3. Periodically Review Performance You and your manager should meet reason-
ably often—either informally as needed or formally every three months—to review prog-
ress, as should you and your subordinates. Indeed, frequent communication is necessary
so that everyone will know how well he or she is doing in meeting the objectives.
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176 PART 3 Planning
During each meeting, managers should give employees feedback, and objectives
should be updated or revised as necessary to reflect new realities. Feedback is
essential for improving performance.47 If you were managing a painting or landscap-
ing business, for example, changes in the weather, loss of key employees, or a finan-
cial downturn affecting customer spending could force you to reconsider your
objectives.
4. Give Performance Appraisal and Rewards, If Any At the end of 6 or 12

months, you and your subordinate should meet to discuss results, comparing performance
with initial objectives. Deal with results, not personalities,
emotional issues, or excuses.
Because the purpose of MBO is to motivate employ-
ees, performance that meets the objectives should be
rewarded—with compliments, raises, bonuses, promo-
tions, or other suitable benefits. Failure can be
addressed by redefining the objectives for the next 6- or
12-month period, or even by taking stronger measures,
such as demotion. Basically, however, MBO is viewed
as being a learning process. After step 4, the MBO
cycle begins anew.
Cascading Goals: Making Lower-

Level Goals Align with Top Goals
A good performance appraisal is like kicking a field goal. It feels good, is
For goal setting to be successful, the following three
rewarding, and fosters continued motivation. Have you had good and bad things have to happen.
reviews? What makes a performance review effective versus ineffective?
©Steven Puetzer/Getty Images
1. Top Management and Middle Management
Must Be Committed “When top-management
commitment [to MBO] was high,” said one review, “the average gain in productivity
was 56%. When commitment was low, the average gain in productivity was only 6%.”48
2. The Goals Must Be Applied Organizationwide The goal-setting program has

to be put in place throughout the entire organization. That is, it cannot be applied in
just some divisions and departments; it has to be done in all of them.
3. Goals Must “Cascade”—Be Linked Consistently Down through the Orga-

nization Cascading goals is the process of ensuring that the strategic goals set at the
top level align, or “cascade,” downward with more specific short-term goals at lower levels
within an organization, including employees’ objectives and activities. Top managers set
strategic goals, which are translated into divisional goals, which are translated into
departmental goals, which are translated into individual goals. The cascading process
ends when all individuals have a set of goals that support the overall strategic goals.
This process helps employees understand how their work contributes to overall corpo-
rate success.
Example: The Vice President of the Claims Division of an automobile insurance
company, which pays off requests (or claims) by customers seeking insurance payments
to repair damage to their cars, may set the major goal (and SMART goal) of “increase
customer satisfaction in Claims Division by 10%.” In the cascading goals process, the
same goal would be embraced by the Assistant Vice President of Claims and the
Recovery Director beneath him or her. Further down the hierarchy, the Recovery Unit
Manager would reword the goal to be more specific: “Decrease the number of customer
complaints about claims by 10% over last year’s average.” For the individual Recovery
Analyst at the lowest level, the goal could become: “Return all customer phone calls
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about claims within 24 hours.”49 Thus, all the subgoals in the organization are in align-
ment with the major goal of top management.
The Importance of Deadlines

There’s no question that college is a pressure cooker for many students. The reason, of
course, is the seemingly never-ending deadlines. But consider: Would you do all the
course work you’re doing—and realize the education you’re getting—if you didn’t have
deadlines?
As we saw under the “T” (for “has target dates”) in SMART goals, deadlines are as
essential to goal setting in business as they are to your college career. Because the whole
purpose of planning and goals is to deliver to a client specified results within a specified
period of time, deadlines become a great motivator, both for you and for the people
working for you.
It’s possible, of course, to let deadlines mislead you into focusing too much on imme-
diate results and thereby ignoring overall planning—just as students will focus too much
on preparing for a test in one course while neglecting others. In general, however, dead-
lines can help you keep your eye on the “big picture” while simultaneously paying atten-
tion to the details that will help you realize the big picture. Deadlines can help
concentrate the mind, so that you make quick decisions rather than put them off.
Deadlines help you ignore extraneous matters (such as cleaning up a messy desk) in
favor of focusing on what’s important—realizing the goals on time and on budget.
Deadlines provide a mechanism for giving ourselves feedback. ●
PRACTICAL ACTION Setting Goals for a Small Business
Goal setting can seem like an intimidating process, but it’s both a relationships, getting those potential work opportunities
necessary and a helpful one for the millions of small businesses in the door,” she said. She recently attended a business
in the United States. These firms, officially defined as having fair in Dearborn in order to meet buyers from potential
500 or fewer employees, produce almost half of U.S. non-farm customer firms like Fiat Chrysler and Toyota.
GDP and two-thirds of the nation’s new private-sector jobs.50 4. Accept that setbacks will come.
What are some typical goal-setting steps for a small business?51 Quillen sometimes meets with potential customers over
1. Break large goals down into smaller ones. the phone to pitch her company’s products. One recent
Anita-Maria Quillen is the owner and manager of Diversi- phone meeting was a disappointment; DER had pre-
fied Engineering & Plastics (DER), a profitable auto parts sented a prototype of a new product, but the customer
manufacturer with 78 employees in Jackson, MI. She said her company would have to bid the order out to
hopes to keep her small business profitable despite a other suppliers before making a purchase. Because DER
recent drop in U.S. auto sales that will eventually affect had invested money in developing its product, Quillen
sales of her company’s mirror brackets, pistons, and win- feared her price would be undercut in the bidding
dow frames as car makers seek to cut their costs. Quillen process.
is firmly focused on her bottom line; one of her business 5. Celebrate success.
practices is to break her annual profit goal into monthly On learning her company had posted its most profitable
sales goals. month in several years, Quillen celebrated with a toast
2. Track progress toward goals. shared with company executives. Then it was back to
DER tracks sales monthly sales and recently posted its work.
most profitable month in several years.
YOUR CALL
3. Keep the goal in sight. What major goal of your own have you broken into smaller
One of Quillen’s goals is to increase her personal con- parts? If you have never done this, for what future goal do you
tacts in the industry in order to drive orders to the firm. think it would be an effective strategy for you?
“I need to be out meeting people, establishing those
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178 PART 3 Planning
5.5 The Planning/Control Cycle

THE BIG PICTURE
The four-step planning/control cycle helps you keep in control, to make sure you’re headed in the right
direction.
LO 5-5 Once you’ve made plans, how do you stay in control to make sure you’re headed in the
right direction? Actually, there is a continuous feedback loop known as the planning/
Outline the planning/
control cycle. (The “organizing” and “leading” steps within the Planning—Organizing—
control cycle.
Leading—Controlling sequence are implied here.) The planning/control cycle has two
planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2)
Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control
the direction by taking corrective action in two ways—namely, by (a) correcting deviations
in the plan being carried out or (b) improving future plans. (See Figure 5.5.) (We will see
this model echoed later in Chapter 16 in the discussion of the Plan-Do-Check-
Act cycle.)
The planning/control cycle loop exists for each level of planning—strategic, tacti-
cal, and operational. The corrective action in step 4 of the cycle (a) can get a project
back on track before it’s too late or (b) if it’s too late, can provide data for improving
future plans. ●
FIGURE 5.5
The planning/control cycle
This describes a constant feedback loop designed to ensure plans stay headed in the right direction.
Source: Robert Kreitner, Management, 8th edition.
The Two
1 Make the plan 2 Carry out the plan
Planning Steps
4 Control the direction 3 Control the

in two ways: direction by
(a) by correcting comparing the
deviations in the results with the plan
plan being carried
out (return to
The Two
step 2), or
Control Steps
(b) by improving
future plans (go
to step 1 to
start over)
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EXAMPLE The Planning/Control Cycle: Tesla’s Long-Awaited Model 3
By early 2018, Tesla’s Model 3, the electric-car company’s long United States to be put back together again, which apparently
anticipated, more affordable new vehicle (whose price begins had still not happened by early 2018. “We view the 2,500 target
at $35,000) had missed its announced production goals at in March, in particular, as extremely aggressive due to manage-
least twice. In the summer of 2017, the company had promised ment’s acknowledgment of needing to get the robotic equip-
to make 20,000 Model 3 vehicles by December, but it actually ment in Germany disassembled, shipped to the US, and then
made fewer than 300 during that year’s third quarter, and reassembled and programmed in order to hit roughly 2,000 to
orders placed at that time were not expected to be filled until 2,500 units per week,”53 said one market analyst.
the middle of 2018, a projection that was later pushed back to Tesla’s CEO Elon Musk said he was confident that the differ-
“late 2018 or early 2019.” The date by which the company ence between projections and reality was “getting smaller with
would achieve its fore- each passing week.” But
casted production run of in the fourth quarter of
5,000 cars a week was 2017, only 2,425 units
also moved, from the end were made, and only
of 2017 to the end of the 1,550 were delivered to
second quarter of 2018, customers (leaving
with the expectation that almost 300,000 people
in the first quarter only still waiting for their
2,500 cars a week would cars).54 But almost 800 of
come off the assembly those fourth-quarter cars
line. According to Tesla, had rolled off the line in a
the change to a slower mere seven days, leading
ramp-up was meant “to some to hope that Tesla
focus on quality and effi- had begun producing
ciency rather than simply faster than its newly con-
pushing for the highest servative projections sug-
The Tesla model 3 has experienced tremendous production and logistics problems.
possible volume in the One cause is that the company does not have the ability to custom-build the cars in a gested. One possible
shortest period of time.”52 timely fashion to meet customer demand. This demand is partly driven by the car’s reason was the compa-
“Production bottle- features and a competitive price of roughly $49,000. CEO Elon Musk has totally ny’s decision to pull
immersed himself in the production process in order to improve the planning/control
necks” were blamed for process. ©Salwan Georges/The Washington Post/Getty Images
workers off the produc-
these disappointing tion of two of the compa-
results, along with the fact ny’s other cars and assign
that some production systems were not running as quickly as the them to the Model 3. “The whole team is on it, we’ve got it
company had planned. The assembly line was less fully auto- covered, it’s just going to take us a few months longer than
mated than Tesla had wanted, for example, with human workers expected,” Musk said.55
filling the gaps. The company plans to make production as fully
automated as possible but hasn’t yet achieved that goal. Battery YOUR CALL
production has also been slower than hoped, after Tesla was Some analysts believe Tesla would have been better off
forced to bring it back in house when outside suppliers failed to announcing less ambitious production plans for the Model 3 in
deliver. The company addressed that problem by creating auto- the first place. Are they right? Do you think the company is
matic assembly lines for its batteries. But these lines were built in doing a good job of making and controlling its paces for the
Germany, so they needed to be disassembled and shipped to the Model 3? Why or why not?
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180 PART 3 Planning

Readiness
LO 5-6 Planning is not one of the career readiness competencies associated with the model
Describe how to develop shown below. (See Figure 5.6.) The reason is not that employers don’t value planning
the career readiness skills. Rather, it’s the fact that other Career Readiness competencies are foundational to
competency of proactive good planning. The soft skill of critical thinking/problem solving is a prime example.
learning orientation. The competency of critical thinking/problem solving is defined as sound reasoning to
analyze situations, make decisions, and solve problems. These are all critical activities
associated with planning and require the ability to obtain, interpret, and analyze both
qualitative and quantitative information. In turn, this competency is driven by another
career readiness competency: proactive learning orientation. Let’s consider the link
between planning, critical thinking, and proactive learning in more detail.
Critical thinkers don’t make quick or rash decisions during the planning process.
Instead, they consider alternative solutions to problems and remain open-minded. They
remain open-minded by obtaining and considering a wide range of information before
making a judgment. This is precisely what happens when someone has a proactive
learning orientation. Proactive learners seek information and knowledge so that they
expand their knowledge base, which makes them more effective planners. The point is
that good planning requires critical thinking, which in turn requires a proactive learning
orientation. This process ultimately results in expanding the career readiness compe-
tency of task-based/functional knowledge.
Effective planning requires you to be a proactive learner in areas beyond the techni-
calities of your profession. It also applies to two additional career readiness competen-
cies: understanding the business and networking. Organizations want all of us to stay
abreast of what is happening in the industries and markets in which we work. Doing so
enables us to consider a wider bandwidth of information when planning. For example,
staying current about trends in higher education enables us as authors to do a better job
in planning the revisions of this product. We also find that many people fail to keep
their social and professional networks up to date over time. This is a mistake! Failing to
proactively maintain such networks means that we are losing contacts and valuable
information that can aid the planning process and our career progression. As authors,
for instance, we rely on our social networks to get feedback about what students and
educational institutions are looking for in a textbook. As you can see, effective planning
is grounded in information that comes from staying current about events within the
industry in which we work and with people in our social networks.
FIGURE 5.6
Model of Career Readiness Knowledge
(K)
Soft skills
(S)
Career Career
readiness outcomes
Attitudes
(A)
Other
characteristics
(O)
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Becoming More Proactive

Being “intentionally proactive” is the first step to becoming a proactive learner. “Being
proactive means relying on your own choices instead of luck and circumstances. It’s
about controlling the situation rather than simply waiting for the outcomes,” said one
business writer.56 Lina Tinsley, a brand manager at MARS, put this recommendation
into practice. “I give my 100 percent every day and I’m committed to be intentional in
all I do. For me, work is an opportunity to live my purpose and bring my best, to deliver
consistent results, and to positively influence the people around me,” she said.57 You
can put Lina’s beliefs into practice by following four key recommendations:58
1. Focus on solutions rather than problems.
2. Take initiative and rely on yourself.
3. Set realistic goals and don’t overpromise.
4. Participate and contribute to personal and professional conversations.
Keeping an Open Mind and Suspending Judgment

Keeping an open mind and suspending judgment are essential for developing a proac-
tive learning orientation. This exercise was designed to assist you in this pursuit. Focus
on your school work or a current job to practice the technique. You can repeat this
process in the future whenever you desire to be open-minded.59
■ Step 1 Make a list of your current tasks, projects, or commitments at school
or work.
■ Step 2 For each task listed in step one, identify the key moments it would be
important to be open-minded and suspend judgment.
■ Step 3 For each of these moments, think of how you might apply the four key
skills of being open minded:60
Question your beliefs. Many of us make decisions based on false beliefs and
assumptions. You can check yourself by asking: What specific evidence
supports my view? Is my knowledge based on facts or my experience? Why
am I arguing with others who have more experience and knowledge? Am I
offering an opinion or being opinionated? Based on answers to these ques-
tions, you can either proceed in the discussion or take a step back and
allow your mind to take in new information.
Pause and seek feedback. Observe how others respond to your opinions
and recommendations. Don’t be married to a perspective. If the goal of a
discussion is to conduct better planning and make better decisions, then it
does not matter whether people agree or disagree with your views. Your
goal is to arrive at better decisions and help people to grow.
Watch for communication blocks. Be aware of words, concepts, or com-
munication styles that elicit emotional responses from you and others.
Emotionality leads to defensiveness and the blocking of listening. Be aware
of your emotions when talking with others.
4. Check the accuracy of your past judgments and predictions. If your judg-
ments and predictions have been wrong, consider the reasons and adjust in
the future. ●
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Key Terms Used in This Chapter
action plan 169 operating plan 169 single-use plans 171
business model 158 operational goals 169 SMART goal 172
business plan 158 operational planning 167 standing plans 171
cascading goals 176 plan 158 strategic goals 169
goal 169 planning 158 strategic management 159
long-term goals 169 planning/control cycle 178 strategic planning 166
management by objectives policy 171 strategy 159
(MBO) 173 procedure 171 tactical goals 169
means-end chain 169 program 171 tactical planning 167
mission 164 project 171 values statement 165
mission statement 164 rule 171 vision 164
objective 169 short-term goals 169 vision statement 164
Key Points
5.1 Planning and Strategy stands for, its core priorities, the values its employees
• Planning is defined as setting goals and deciding embody, and what its products contribute to the
world.
how to achieve them. It is also defined as coping with
• From these are derived strategic planning, then
uncertainty by formulating future courses of action to
achieve specified results. tactical planning, then operational planning. In
• A plan is a document that outlines how goals are strategic planning, managers determine what the
organization’s long-term goals should be for the next
going to be met. One important type of plan is a
1–5 years with the resources they expect to have
business plan, a document that outlines a proposed
available. In tactical planning, managers determine
firm’s goals, the strategy for achieving them, and the
what contributions their work units can make with
standards for measuring success. The business plan
their given resources during the next 6–24 months.
describes the business model, which outlines the
In operational planning, they determine how to
need the firm will fill, the operations of the business,
accomplish specific tasks with available resources
its components and functions, as well as the
within the next 1–52 weeks.
expected revenues and expenses.
• A strategy, or strategic plan, sets the long-term goals 5.3 Goals and Plans
and direction for an organization. • Whatever its type, the purpose of planning is to set a
• Strategic management is a process that involves
goal and then formulate an action plan.
managers from all parts of the organization in the • Goals are of two types: long-term and short-term.
formulation and implementation of strategies and
• Long-term goals are generally referred to as strategic
strategic goals.
goals. They tend to span one to five years and focus
• An organization should adopt planning and strategic
on achieving the strategies identified in a company’s
management for three reasons: They can (1) provide
strategic plan.
direction and momentum, (2) encourage new ideas,
• Short-term goals are sometimes referred to as
and above all (3) develop a sustainable competitive
tactical goals, operational goals, or just plain goals.
advantage.
They generally span 12 months and are connected
to strategic goals in a hierarchy known as a means-
5.2 Fundamentals of Planning end chain.
• An organization’s reason for being is expressed in a • A means-end chain shows how goals are connected
mission statement. or linked across an organization. The
• A vision is a long-term goal describing “what” an accomplishment of low-level goals is the means
organization wants to become. It is a clear sense of leading to the accomplishment of high-level goals or
the future and the actions needed to get there. A ends.
vision statement expresses what the organization • Strategic goals are set by and for top management
should become, where it wants to go strategically. and focus on objectives for the organization as a
• Both mission and vision should express the whole. Tactical goals are set by and for middle
organization’s values. A values statement, or core managers and focus on the actions needed to
values statement, expresses what the company achieve strategic goals. Operational goals are
182 PART 3 Planning
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set by first-line managers and are concerned with • Management by objectives (MBO) is a four-step
short-term matters associated with realizing tactical process in which (1) managers and employees jointly
goals. set objectives for the employee, (2) managers develop
• An operating plan is a plan that breaks long-term action plans, (3) managers and employees periodically
output into short-term targets or goals. Operational review the employee’s performance, and (4) the
plans turn strategic plans into actionable short-term manager makes a performance appraisal and rewards
goals and action plans. the employee according to results. The purpose of
• An action plan defines the course of action needed MBO is to motivate rather than to control subordinates.
to achieve the stated goal. Whether the goal is long- • For MBO to be successful three things have to
term or short-term, action plans outline the tactics happen. (1) The commitment of top management is
that will be used to achieve the goal. Each tactic also essential. (2) The goals must be applied
contains a projected date for completing the desired organizationwide. (3) Goals must cascade—be linked
activities. consistently down through the organization.
• The goal should be followed by an action plan, which Cascading goals is the process of ensuring that the
defines the course of action needed to achieve the strategic goals set at the top level align, or “cascade,”
stated goal. The operating plan, which is typically downward with more specific short-term goals at
designed for a one-year period, defines how you will lower levels within an organization, including
conduct your business based on the action plan; it employees’ objectives and activities.
identifies clear targets such as revenues, cash flow, • Deadlines are essential to planning because they
and market share. become great motivators both for the manager and
• Plans may be either standing plans, developed for for subordinates.
activities that occur repeatedly over a period of time, 5.5 The Planning/Control Cycle
or single-use plans, developed for activities that are
• Once plans are made, managers must stay in control
not likely to be repeated in the future.
using the planning/control cycle, which has two
• There are three types of standing plans: (1) A policy
planning steps (1 and 2) and two control steps (3 and
is a standing plan that outlines the general response
4), as follows: (1) Make the plan. (2) Carry out the
to a designated problem or situation. (2) A procedure
plan. (3) Control the direction by comparing results
outlines the response to particular problems or
with the plan. (4) Control the direction by taking
circumstances. (3) A rule designates specific
corrective action in two ways—namely, by (a)
required action.
correcting deviations in the plan being carried out or
• There are two types of single-use plans: (1) A program (b) improving future plans.
encompasses a range of projects or activities.
(2) A project is a single-use plan of less scope 5.6 Career Corner: Managing Your Career
and complexity. Readiness
• Planning requires the use of multiple career
5.4 Promoting Consistencies in Goals: SMART readiness competencies, including critical thinking/
Goals, Management by Objectives, and Goal problem solving, proactive learning orientation, task-
Cascading based/functional knowledge, understanding the
• The five characteristics of a good goal are business, and networking.
represented by the acronym SMART. A SMART goal • You can increase the competency of proactive
is one that is specific, measurable, attainable, results- learning orientation by becoming more proactive and
oriented, and has target dates. keeping an open mind and suspending judgement.
Understanding the Chapter: What Do I Know?

1. What are planning, strategy, and strategic 6. What are different kinds of plans?
management? 7. What are SMART goals?
2. Why are they important? 8. What is management by objectives?
3. What is the difference between a mission and a 9. What three things have to happen for MBO to be
vision, a mission statement and a vision statement? successful?
4. What are three types of planning? 10. Explain the planning/control cycle.
5. What are two types of goals?
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Management in Action
Fender Rebrands to Stay in Tune with the Times They will be less likely to quit once they achieve this
milestone and more likely to buy more Fender guitars
Fender Musical Instruments Corporation produces
in the future.66 Players will also be spending much less
some of the most recognized electric and bass guitars
than they would have with private lessons, since the
in the world. The organization was one of the first to
subscription costs only $20 a month.
mass produce guitars and has an illustrious history dat-
The software may not be for everybody, though. As
ing back to the late 1940s. Fender’s guitars revolution-
Business Insider reports, “No program of instruction
ized popular music by allowing smaller groups of
will be perfect, and Fender Play isn’t going to work for
musicians to play together.61
everyone . . . And for those who don’t like it, there are
Today, these small groups include megastar custom-
many free options on the web, and you can always hire
ers like Eric Clapton, Sheryl Crow, and U2. With stars
a real, live teacher!”67 Obviously, Fender cannot rely on
of this caliber using Fender guitars on stage, you might
a one-product-fits-all plan.
imagine business is booming. Sadly, it is not. Fortune
The company has developed additional apps to
reports that Fender “spent the better part of the past
speed up the learning process. For example, Fender
decade struggling with debt and a lack of growth, and
developed Fender Tune to teach players how to tune a
in 2012 abandoned an IPO, citing unfavorable market
guitar without having any level of proficiency. “When
conditions.”62 Andy Mooney was hired as CEO in 2015
the kid plugs [the guitar] in for the first time, it doesn’t
to turn around the company. Let’s consider his plan.
sound like a screaming cat when it comes out of an
amp,” according to Mooney.68
A NEW PLAN FOR AN UNRELIABLE Fender is also looking to release a practice-room app
CONSUMER that can assist someone in playing any song in its music
Fender began its transformation by coming to terms library. This provides an opportunity for amateur play-
with the high quit-rate of beginning guitar players. ers to practice and develop their skills.
According to Mooney, “Almost everyone who picks up Another app lets an amp emulate the sounds of
a guitar, about 90 percent, abandons it within the first famous guitarists. The company’s newest amp model will
year.”63 There are two main contributors to this dire be able to connect to this app wirelessly, through
statistic—the method of learning the instrument and Bluetooth, so players can alter and share sound effects.69
the cost associated with doing so.
Fender’s plan focused on how amateur players pre- IMPACT ON THE BOTTOM LINE
ferred to learn. Ethan Kaplan, Fender’s general man- Although Fender has built guitars for Eric Clapton,
ager of digital, noted that “The way that I learned piano Stevie Ray Vaughn, and Jimi Hendrix, its growth plan
when I was a kid is no longer the way most people is based on the needs of amateur musicians. According
learn. They sit at a computer. They sit on an iPhone. to Kaplan, “We never really concentrated on those 45%
They do things in little bites versus sitting through of players who buy a guitar for the first time every
hour-long lessons.”64 Mooney and Kaplan’s assessment year.” Even a slight improvement in that 90% abandon-
of Fender’s current reality provided crucial insight into ment statistic would be significant for the company. If
the cost of lessons. According to Fortune, “ . . . new Fender can get a 10% increase in the number of begin-
players spend four times as much on lessons as they do ners who stick with their guitar, it could double the size
on the instrument.”65 of its instrument business.70
The company’s plan to overcome these challenges Fender also plans on tapping into an important evo-
was based on experimenting with different apps. The lution process with its digital products. If it can get play-
plan strives to ensure that beginning guitar players can ers hooked on cheap starter guitars, then have them
easily use digitized materials to quickly learn how to upgrade to fancier guitars as they become more commit-
play guitar at a reasonable cost. ted to playing, it may be able to turn players into collec-
Fender’s first app was Fender Play. This subscrip- tors. The company would be able to realize more
tion-based app can be used on a mobile device as a way revenue by following the lifecycle of its customers.71
to assist a “do-it-yourself” society learn how to quickly Fender’s sales strategy goes beyond digital. The com-
play the guitar. The app uses bite-sized, multi-angle pany does almost all its business through traditional
video lessons focused on helping new players learn retailers, with online sales from its website making up less
popular songs. A professional guitarist provides step-by- than 2% of North American sales. However, the National
step lessons in the videos, and players can track their Retail Federation says that online sales hit a record
progress in the app. Beginners quickly learn how to $108.2 billion during the 2017 holiday season (a 14.7%
play a familiar song from bands such as the Rolling increase from the year before).72 These statistics suggest
Stones, Foo Fighters, Tim McGraw, and Coldplay. that Fender’s strategy of using traditional retailers may be
184 PART 3 Planning
kin75117_ch05_156-187.indd 184 04/12/18 10:29 PM

outdated. Mooney doesn’t seem to be worried. “Players 3. Do you believe Fender’s strategy and plans will turn
need to touch, feel, and play a guitar before they buy around the company? Explain.
one,” he says. Fender, he says, prefers to use the Internet
as a learning tool, rather than a sales mechanism.73 Application of Chapter Content
Some factors seem to be out of the company’s control. 1. Using the steps in Figure 5.1, describe how Fender is
As Bloomberg reports, “Detractors have predicted the transforming into a digital company.
death of the electric guitar for years, pointing to the rise of
rap and electronic music on pop charts.” Fender doesn’t Define one specific strategic, tactical, and operational
seem overly concerned about this either. “More women plan that Fender can utilize for its transformation.
are playing guitar these days,” says Mooney, a trend he 3. Develop a simple strategic goal, operational goal, and
credits to singer Taylor Swift. The company is also quick action plan for Fender Play: The goals need to be
to point to rising guitar sales over the past decade. “The SMART. Then utilize a means-end chain to illustrate
pendulum swings back and forth,” Mooney says. the relationship among the three.
Can Fender’s new digital strategy swing the pendu- 4. Assume 8% of Fender’s current customers are
lum in its direction? women. Would it be wise for the company to set a
strategic goal of increasing this number to 40% in the
FOR DISCUSSION next 12 months? Why or why not? Explain your
Problem-Solving Perspective response using Figure 5.4.
5. Based on CEO Mooney’s standard for success in
1. What is the underlying problem in this case from making sure beginners stick with their guitars,
Fender CEO Andy Mooney’s perspective? develop a planning/control cycle to make sure Fender
What are some of the causes of this problem? is headed in the right direction.
Legal/Ethical Challenge
Is Pfizer Putting Profits above Alzheimer’s multiple large-scale R&D programs at the same time.
Patients? This has led pharmaceutical companies to focus only
on specific drugs. A former head of research and
Planning and strategy go together, and they flow from development at Pfizer told the Financial Times that
a company’s mission and vision. Decisions made in “You can’t run several programmes of that size, even
the pursuit of corporate strategy are challenging with a budget like Pfizer’s. . . . How many times can
because they ultimately involve choices about how to these companies take another shot when other parts of
spend valuable resources. U.S. pharmaceutical giant science like gene therapy are exploding, and when
Pfizer is a good illustration. there’s a desperate need for new drugs to replace opi-
Pfizer decided in January 2018 to no longer pursue oids? There are many more areas where you can see
new research and development (R&D) in treatments the goal lines.”76 Pfizer’s management team apparently
for Alzheimer’s disease, resulting in the loss of hun- agrees with this conclusion. The organization said in a
dreds of jobs. Worse yet, the approximately 5.5 million statement that not pursuing Alzheimer’s research “was
U.S. adults with this neurological disease no longer an exercise to reallocate [spending] across our portfo-
have one of the biggest pharmaceutical companies in lio, to focus on those areas where our pipeline, and our
their corner.74 Pfizer made this challenging decision scientific expertise, is strongest.”77
because of either low profitability or limited capacity. Though Pfizer may be changing its strategy and its
With respect to profitability, Alzheimer’s research resource allocations, the company has kept its mis-
has proven to be costlier than most other R&D pur- sion statement the same: “To be the premier, innova-
suits. A neuroscientist at Edinburgh University told tive biopharmaceutical company.” Its values include
BBC Radio that “More than 99% of trials for Alzheim- “customer focus” and “integrity.”78 However, its latest
er’s drugs have failed in past 15 years.”75 Investors thus decision is seen by some as contradictory to its mis-
are pressuring pharmaceutical companies to spend sion and values. Alzheimer’s Research UK says that
less on this research when they can pursue more prof- companies should be encouraged to invest in research
itable projects, such as treatments for anxiety disorders into neuroscience. For its part, the Alzheimer’s Soci-
and erectile dysfunction. ety called Pfizer’s decision “disappointing” and a
Capacity becomes an issue in pharmaceutical “heavy blow” to those living with dementia.79
research and development because it’s difficult to run
kin75117_ch05_156-187.indd 185 04/12/18 10:29 PM

Other big drug makers are not letting profit and limited 2. Continue funding Alzheimer’s R&D. As a global
capacity get in their way. A top scientist at Eli Lilly, one of leader in the pharmaceutical industry, Pfizer has an
Pfizer’s competitors, told Financial Times that “Taking obligation to society to find treatments for diseases
care of Alzheimer’s patients is a huge economic cost to affecting millions of people. This would also be in
society and now is not the time to give up.” Eli Lilly’s most line with its mission statement and values.
advanced Alzheimer’s drug failed in a large trial in 2016, 3. Contribute to agencies such as the National Institutes
but the company has vowed to continue Alzheimer’s treat- of Health so they can continue their studies of
ment R&D.80 Another U.S. competitor, AstraZeneca, also Alzheimer’s.
remains committed to fighting the disease.
4. Suggest other options.
SOLVING THE CHALLENGE
What would you do if you were Pfizer’s CEO?
1. Move on to other projects. Pfizer has an obligation to
its shareholders not to throw money at projects that
prove to be unsuccessful.
Uber Continuing Case

Learn how Uber’s corporate strategies have changed from those pursued by founder
and CEO Travis Kalanick to those identified by current CEO Dara Khosrowshahi.
Assess your ability to apply concepts discussed in this chapter to the case by going to
Connect.
186 PART 3 Planning
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Angelo Kinicki

Arizona State University

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PART 1 9 Human Resource Management: Getting the Right

Chapter Notes CN-1 Organization Index IND-5

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Angelo Kinicki is an emeritus professor of management and held the

We are pleased to share these exciting updates

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“ The TRM is top of the line.

Completely revamped, revised, and updated

New to the ninth edition vii

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viii New to the ninth edition

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New to the ninth edition ix

x New to the ninth edition

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New to the ninth edition xi

xii New to the ninth edition

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New to the ninth edition xiii

xiv New to the ninth edition

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Kinicki/Williams, Management: A Practical Introduction, 9e empowers students to develop the

• A student-centered approach to learning.

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readiness along with a table of competencies desired by employers. Attitudes

TABLE 1.2 Description of KSAO Skills Needed for Career Readiness

1.7 Building Your Career Readiness expensive camera

A Model of Career Readiness

Management Theory CHAPTER 2 69

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Career Corner Readiness

Concept Mastery Soft skills

New exercises in Connect allow students to demonstrate lower Attitudes

levels of learning regarding career readiness. The Teaching Resource Other

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©Olivier Renck/Aurora/Getty Images

with purpose. LO 5-2 Compare mission, vision, and value

2.1 Evolving Viewpoints: How We Got to Today’s

major learning objectives. Generous use of headings and

bulleted lists provide students with bite-sized chunks of

information to facilitate retention. Each section begins with a

True learner. In his 70-year

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covering the fundamental

to their future careers.

Practical Action boxes

1. Know that it takes time to find a job, especially

Self-Assessment evaluations help students relate what they are learning

Testimonials from Millennials

that provide testimonials from millennials being imaginative and creative.

students recall an instance when they or their Hansen

management concepts. “I’m glad I . . .” customers,” said Jordin.

Polycentric Managers—“They Know Underlying Best” Polycentric managers

Geocentric Managers—“What’s Best Is What’s Effective, Regardless of Origin”

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