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Fundamentals of Management 10th

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10th Edition

Fundamentals of
Management

Ricky W. Griffin
Texas A&M University

Australia • Brazil • Canada • Mexico • Singapore • United Kingdom • United States

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Fundamentals of Management, Tenth © 2022, 2019 Cengage Learning, Inc.
Edition WCN: 02-300
Ricky W. Griffin
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Printed in the United States of America


Print Number: 01 Print Year: 2021

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For Andrew Preston Griffin
My first grandson and bearer of important family names—I love you, Drew

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Brief Contents
Preface xix
Acknowledgments xxiii

PART 1 An Introduction to Management


Chapter 1 Understanding The Manager’s Job 1
Chapter 2 The Environments of Organizations and Managers 31

PART 2 Planning
Chapter 3 Planning and Strategic Management 59
Chapter 4 Managing Decision Making 89
Chapter 5 Entrepreneurship and New Venture Management 114

PART 3 Organizing
Chapter 6 Organization Structure and Design 143
Chapter 7 Organization Change and Innovation 173
Chapter 8 Managing Human Resources in Organizations 202

PART 4 Leading
Chapter 9 Basic Elements of Individual Behavior in Organizations 235
Chapter 10 Managing Employee Motivation and Performance 267
Chapter 11 Leadership and Influence Processes 301
Chapter 12 Communication in Organizations 332
Chapter 13 Managing Work Groups and Teams 366

PART 5 Controlling
Chapter 14 Basic Elements of Control 395
Chapter 15 Managing Operations, Quality, and Productivity 424
Endnotes 454
Name Index 473
Organization and Product Index 476
Subject Index 480

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Contents
Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix
Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii

PART 1 An Introduction to Management

Chapter 1
Understanding the Manager’s Job 1
1-1 An Introduction to Management 3
1-1a Kinds of Managers 4
Levels of Management 4
1-1b Managing in Different Areas of the Organization 5
1-2 Basic Management Functions 6
1-2a Planning and Decision Making 7
1-2b Organizing 7
Tech Watch: “. . . But What Is a Social Media Manager?” 7
1-2c Leading 8
1-2d Controlling 8
1-3 Fundamental Management Skills 8
Technical Skills 8 • Interpersonal Skills 8 • Conceptual Skills 8 • Diagnostic
Skills 9 • Communication Skills 9 • Decision-Making Skills 9 • Time
Management Skills 9
1-3a The Science and the Art of Management 9
The Science of Management 9
Leading the Way: On the Fast Track 10
The Art of Management 11
1-4 The Importance of Theory and History 11
1-4a Why Theory? 11
1-4b Why History? 11
1-5 The Evolution of Management 12
1-5a The Historical Context of Management 12
1-5b The Classical Management Perspective 13
Scientific Management 13 • Administrative Management 14 • The Classical
Management Perspective Today 14
1-5c The Behavioral Management Perspective 15
The Hawthorne Studies 15 • The Human Relations Movement 16 •
Contemporary Behavioral Science in Management 17 • The Behavioral
Management Perspective Today 17
1-5d The Quantitative Management Perspective 17
Management Science 18 • Operations Management 18 • The Quantitative
Management Perspective Today 18
1-6 Contemporary Management Perspectives 19
1-6a The Systems Perspective 19
1-6b The Contingency Perspective 21

vi

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Contents vii

1-7 Contemporary Management Issues and Challenges 21


1-7a Contemporary Applied Perspectives 21
1-7b Contemporary Management Challenges 22
Summary of Learning Outcomes and Key Points 24
Discussion Questions 25
Building Effective Interpersonal Skills 26
Building Effective Time Management Skills 27
Skill-Building Personal Assessment 27
Management At Work 29
You Make the Call: Reed Hastings Doesn’t Like Standing Still 30

Chapter 2
The Environments of Organizations and Managers 31
2-1 The Organization’s Environments 33
2-1a The General Environment 33
The Economic Dimension 33 • The Technological Dimension 34 • The ­­
Political–Legal Dimension 34
2-1b The Task Environment 35
Competitors 35 • Customers 35 • Supplier 35 • Regulators 36
Strategic Partners 37
2-1c The Internal Environment 38
Owners 38 • Board of Directors 38 • Employees 38 • Physical Work
Environment 38
Doing Business on Planet Earth: Raising the CSR Bar 39
2-2 The Ethical and Social Environment of Management 40
2-2a Individual Ethics in Organizations 40
Managerial Ethics 40 • Managing Ethical Behavior 41
2-2b Emerging Ethical Issues 42
Ethical Leadership 42 • Corporate Governance 43 • Ethics and Information
Technology 43
2-3 Social Responsibility in Organizations 43
2-3a Arguments for and Against Social Responsibility 43
2-3b Managing Social Responsibility 44
Formal Organizational Dimensions 45 • Informal Organizational Dimensions 45
2-4 The International Environment of Management 46
2-4a Trends in International Business 46
2-4b Levels of International Business Activity 47
Exporting and Importing 47 • Licensing 48 • Strategic Alliances 48 • Direct
Investment 48
2-4c The Context of International Business 48
The Cultural Environment 48 • Controls on International Trade 49 • Economic
Communities 50 • The Role of the GATT and WTO 51
2-5 The Organization’s Culture 51
2-5a The Importance of Organizational Culture 52
2-5b Determinants of Organizational Culture 52
2-5c Managing Organizational Culture 52
Leading the Way: Happy Fit 53
Summary of Learning Outcomes and Key Points 54
Discussion Questions 55
Building Effective Conceptual Skills 55
Building Effective Communication Skills 56
Skill-Building Personal Assessment 56
Management at Work 57
You Make the Call: Turbulence in the Air 58

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viii Contents

PART 2 Planning

Chapter 3
Planning and Strategic Management 59
3-1 Planning and Organizational Goals 61
3-1a Organizational Goals 62
Purposes of Goals 62 • Kinds of Goals 63
3-1b Kinds of Organizational Plans 63
Strategic Plan 63 • Tactical Plans 63 • Operational Plans 63
3-2 The Nature of Strategic Management 64
3-2a The Components of Strategy 64
3-2b Types of Strategic Alternatives 64
3-3 Using SWOT Analysis to Formulate Strategy 66
3-3a Evaluating an Organization’s Strengths 66
3-3b Evaluating an Organization’s Weaknesses 67
3-3c Evaluating an Organization’s Opportunities and Threats 68
Tech Watch: Starting Conversations 68
3-4 Formulating Business-Level Strategies 69
3-4a Generic Strategies 69
3-4b Strategies Based on the Product Life Cycle 71
3-5 Formulating Corporate-Level Strategies 72
3-5a Single-Product Strategy 72
3-5b Related Diversification 72
3-5c Unrelated Diversification 73
Leading The Way: The Beauty of Differentiation 74
3-5d Managing Diversification 75
BCG Matrix 75 • GE Business Screen 76
3-6 Tactical Planning 78
3-6a Developing Tactical Plans 78
3-6b Executing Tactical Plans 78
3-7 Operational Planning 79
3-7a Single-Use Plans 79
Programs 79 • Projects 79
3-7b Standing Plans 79
Policies 80 • Standard Operating Procedures 80 • Rules and Regulations 80
3-7c Contingency Planning and Crisis Management 80
Summary of Learning Outcomes and Key Points 83
Discussion Questions 84
Building Effective Time-Management Skills 84
Building Effective Decision-Making Skills 84
Skill-Building Personal Assessment 85
Management at Work 87
You Make the Call: The Lap of Luxury 88

Chapter 4
Managing Decision Making 89
4-1 The Nature of Decision Making 91
4-1a Decision Making Defined 91
4-1b Types of Decisions 92
4-1c Decision-Making Conditions 92
Decision Making under Certainty 92 • Decision Making under Risk 93
Decision Making under Uncertainty 94
4-2 Rational Perspectives on Decision Making 95
4-2a The Classical Model of Decision Making 95

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Contents ix

4-2b Steps in Rational Decision Making 95


Recognizing and Defining the Decision Situation 95 • Identifying Alternatives 96
Evaluating Alternatives 97 • Selecting an Alternative 97 • Implementing the
Chosen Alternative 98 • Following Up and Evaluating the Results 98
4-2c Evidence-Based Management 99
4-3 Behavioral Elements in Decision Making 100
4-3a The Administrative Model 100
4-3b Political Forces in Decision Making 101
4-3c Intuition and Escalation of Commitment 101
Intuition 101
A World of Difference: Sometimes Doing the “Right Thing” Can Be Confusing 102
Escalation of Commitment 102
4-3d Risk Propensity and Decision Making 103
4-3e Ethics and Decision Making 103
Doing Business on Planet Earth: Lighting the Stove 104
4-4 Group and Team Decision Making in Organizations 105
4-4a Forms of Group and Team Decision Making 105
Interacting Groups and Teams 105 • Delphi Groups 105 • Nominal Groups 106
4-4b Advantages of Group and Team Decision Making 106
4-4c Disadvantages of Group and Team Decision Making 106
4-4d Managing Group and Team Decision-Making Processes 107
Summary of Learning Outcomes and Key Points 108
Discussion Questions 108
Building Effective Conceptual Skills 109
Building Effective Decision-Making Skills 110
Skill-Building Personal Assessment 110
Management at Work 111
You Make the Call: Sailing the Seas 113

Chapter 5
Entrepreneurship and New Venture Management 114
5-1 The Meaning of Entrepreneurship 116
5-2 The Role of Entrepreneurs, Start-Ups, and New Ventures in Society 117
5-2a Job Creation 117
5-2b Innovation 119
5-2c Importance to Big Business 120
5-3 Strategy for Start-Ups and New Ventures 120
5-3a Choosing an Industry 120
Services 121 • Retailing 121 • Construction 122 • Finance and Insurance 122
• Wholesaling 122 • Transportation 122 • Manufacturing 123
5-3b Emphasizing Distinctive Competencies 123
Identifying Niches in Established Markets 124 • Identifying New Markets 124
Leading the Way: Current Affairs in the Electric Vehicle Business 125
First-Mover Advantages 126
5-3c Writing a Business Plan 126
5-3d Entrepreneurship and International Markets 127
5-4 Structure of Start-Ups and New Ventures 127
5-4a Starting the New Business 127
Buying an Existing Business 127 • Starting from Scratch 128
5-4b Financing the New Business 128
Personal Resources 128 • Strategic Alliances 129 • Traditional Lenders 129
Venture Capital Companies 129 • Small-Business Investment Companies 129
SBA Financial Programs 129 • Crowdfunding 130
5-4c Sources of Management Advice 130
Advisory Boards 130 • Management Consultants 130 • The Small Business
Administration 130 • Networking 131

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x Contents

5-4d Franchising 131


Beyond Traditional Business: Taxi Dancing around the Question of Regulation 132
5-5 The Performance of Start-Ups and New Ventures 134
5-5a Trends in Start-Ups and New Ventures 134
Emergence of E-Commerce 135 • Crossovers from Big Business 135
Opportunities for Minorities and Women 135 • Better Survival Rates 135
5-5b Reasons for Failure 136
5-5c Reasons for Success 136
Summary of Learning Outcomes and Key Points 137
Discussion Questions 138
Building Effective Interpersonal Skills 138
Building Effective Conceptual Skills 139
Skill-Building Personal Assessment 139
Management at Work 140
You Make the Call: Putting the Greek into Yogurt 142

PART 3 Organizing

Chapter 6
Organization Structure and Design 143
6-1 The Basic Elements of Organizing 145
6-1a Job Specialization 145
Benefits and Limitations of Specialization 145 • Alternatives to Specialization 146
6-1b Grouping Jobs: Departmentalization 148
Functional Departmentalization 149 • Product Departmentalization 149
Customer Departmentalization 149 • Location Departmentalization 150
6-1c Establishing Reporting Relationships 150
Chain of Command 150 • Span of Management 150 • Tall versus Flat
Organizations 150
6-1d Distributing Authority 151
The Delegation Process 151 • Decentralization and Centralization 151
Leading the Way: Feeding the Chicken 152
6-1e Coordinating Activities 153
The Need for Coordination 153 • Structural Coordination Techniques 153
Digital Coordination 154
6-2 The Bureaucratic Model of Organization Design 155
6-3 Situational Influences on Organization Design 156
6-3a Core Technology 157
6-3b Environment 158
A World of Difference: Keeping the Organizational Tools Sharp 158
6-3c Organizational Size and Life Cycle 159
6-4 Basic Forms of Organization Design 160
6-4a Functional (U-Form) Design 160
6-4b Conglomerate (H-Form) Design 161
6-4c Divisional (M-Form) Design 162
6-4d Matrix Design 163
6-4e Hybrid Designs 165
6-5 Emerging Issues in Organization Design 165
6-5a The Team Organization 165
6-5b The Virtual Organization 166
6-5c The Learning Organization 166
Summary of Learning Outcomes and Key Points 167
Discussion Questions 167
Building Effective Conceptual Skills 168
Building Effective Diagnostic Skills 168

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents xi

Skill-Building Personal Assessment 168


Management at Work 171
You Make the Call: The Stress of Screening 172

Chapter 7
Organization Change and Innovation 173
7-1 The Nature of Organization Change 175
7-1a Forces for Change 175
External Forces 175 • Internal Forces 176
7-1b Planned versus Reactive Change 176
7-2 Managing Change in Organizations 177
7-2a Steps in the Change Process 178
The Lewin Model 178 • A Comprehensive Approach to Change 178
7-2b Understanding Resistance to Change 179
Uncertainty 179 • Threatened Self-Interests 179 • Different Perceptions 180
Feelings of Loss 180
7-2c Overcoming Resistance to Change 180
Participation 180 • Education and Communication 180 • Facilitation 181
Force-Field Analysis 181
7-3 Areas of Organization Change 182
7-3a Changing Organization Structure and Design 182
7-3b Changing Technology and Operations 182
Doing Business on Planet Earth: Toward Zero Waste? 183
7-3c Changing People, Attitudes, and Behaviors 184
7-3d Changing Business Processes 185
The Need for Business Process Change 185 • Approaches to Business Process
Change 185
7-3e Organization Development 186
OD Assumptions 186 • OD Techniques 187 • The Effectiveness of OD 188
7-4 Organizational Innovation 189
7-4a The Innovation Process 189
Innovation Development 189 • Innovation Application 189 • Application
Launch 190 • Application Growth 190 • Innovation Maturity 190
Innovation Decline 190
7-4b Forms of Innovation 190
Radical versus Incremental Innovations 191 • Technical versus Managerial
Innovations 191 • Product versus Process Innovations 191
7-4c The Failure to Innovate 192
Lack of Resources 192 • Failure to Recognize Opportunities 193 • Resistance to
Change 193
Tech Watch: Breaking the Mold 193
7-4d Promoting Innovation in Organizations 194
The Reward System 194 • Organization Culture 194 • Intrapreneurship in Larger
Organizations 195
Summary of Learning Outcomes and Key Points 195
Discussion Questions 196
Building Effective Decision-Making Skills 197
Building Effective Diagnostic Skills 197
Skill-Building Personal Assessment 198
Management at Work 199
You Make the Call: A Picture Says It All 201

Chapter 8
Managing Human Resources in Organizations 202
8-1 The Environmental Context of Human Resource Management 204
8-1a The Strategic Importance of HRM 204

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xii Contents

8-1b The Legal Environment of HRM 205


Equal Employment Opportunity 205 • Compensation and Benefits 206
Labor Relations 207 • Health and Safety 207 • Emerging Legal Issues 207
8-1c Social Change and HRM 208
8-2 Attracting Human Resources 209
8-2a Human Resource Planning 209
Job Analysis 209 • Forecasting Human Resource Demand and Supply 209
Matching Human Resource Demand and Supply 211
8-2b Recruiting Employees 211
Tech Watch: Using Tech to Find Talent 212
8-2c Selecting Employees 213
Application Forms and Resumes 213 • Tests 214 • Interviews 214
Assessment Centers 214 • Other Techniques 214
8-3 Developing Human Resources 215
8-3a Training and Development 215
Assessing Training Needs 215 • Common Training Methods 215 • Evaluation of
Training 217
8-3b Performance Appraisal 217
Common Appraisal Methods 217 • Errors in Performance Appraisal 219
8-3c Performance Feedback 220
8-4 Maintaining Human Resources 220
8-4a Determining Compensation 221
Wage-Level Decision 221 • Wage-Structure Decision 221 • Individual Wage
Decisions 222
8-4b Determining Benefits 222
Leading the Way: Holding True at Nucor Steel 223
8-4c Career Planning 224
8-5 Managing Labor Relations 224
8-5a How Employees Form Unions 224
8-5b Collective Bargaining 225
8-6 New Challenges in the Changing Workplace 227
8-6a Managing Knowledge Workers 227
The Nature of Knowledge Work 227 • Knowledge Worker Management and Labor
Markets 227
8-6b Contingent and Temporary Workers 227
Trends in Contingent and Temporary Employment 227 • Managing Contingent and
Temporary Workers 228
Summary of Learning Outcomes and Key Points 229
Discussion Questions 230
Building Effective Decision-Making Skills 230
Building Effective Technical Skills 231
Skill-Building Personal Assessment 231
Management at Work 233
You Make the Call: No Company for Old-Fashioned Management 234

PART 4 Leading

Chapter 9
Basic Elements of Individual Behavior in Organizations 235
9-1 Understanding Individuals in Organizations 237
9-1a The Psychological Contract 237
9-1b The Person–Job Fit 239
9-1c The Nature of Individual Differences 239
9-2 Personality and Individual Behavior 240
9-2a The “Big Five” Personality Traits 240

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Contents xiii

9-2b The Myers-Briggs Framework 242


9-2c Other Personality Traits at Work 242
9-2d Emotional Intelligence 244
9-3 Attitudes and Individual Behavior 244
9-3a Work-Related Attitudes 245
Job Satisfaction or Dissatisfaction 245
9-3b Organizational Commitment and Engagement 246
Leading the Way: Happy Hotel Workers at Hilton 246
9-3c Affect and Mood in Organizations 247
9-4 Perception and Individual Behavior 248
9-4a Basic Perceptual Processes 248
Selective Perception 248 • Stereotyping 248
9-4b Perception and Attribution 249
9-5 Stress and Individual Behavior 250
9-5a Causes and Consequences of Stress 251 • Causes of Stress 251
A World of Difference: Differences Can Lead to Stress 252
Consequences of Stress 253
9-5b Managing Stress 254
9-6 Creativity in Organizations 255
9-6a The Creative Individual 255
Background Experiences and Creativity 255 • Personal Traits and Creativity 255
Cognitive Abilities and Creativity 255
9-6b The Creative Process 256
Preparation 256 • Incubation 256 • Insight 256 • Verification 257
9-6c Enhancing Creativity in Organizations 257
9-7 Types of Workplace Behavior 257
9-7a Performance Behaviors 257
9-7b Withdrawal Behaviors 258
9-7c Organizational Citizenship 258
9-7d Dysfunctional Behaviors 259
Summary of Learning Outcomes and Key Points 259
Discussion Questions 260
Building Effective Interpersonal Skills 261
Building Effective Time-Management Skills 261
Skill-Building Personal Assessment 262
Management at Work 264
You Make the Call: Engaging with the Company Garbage 266

C h ap t e r 10
Managing Employee Motivation and Performance 267
10-1 The Nature of Motivation 269
10-1a The Importance of Employee Motivation in the Workplace 269
10-1b Historical Perspectives on Motivation 270
The Traditional Approach 270 • The Human Relations Approach 270
The Human Resource Approach 271
10-2 Content Perspectives on Motivation 271
10-2a The Needs Hierarchy Approach 271
Maslow’s Hierarchy of Needs 272 • The ERG Theory 273
10-2b The Two-Factor Theory 274
10-2c Individual Human Needs 275
10-2d Implications of the Content Perspectives 275
10-3 Process Perspectives on Motivation 276
10-3a Expectancy Theory 276
Effort-to-Performance Expectancy 276 • Performance-to-Outcome
Expectancy 276 • Outcomes and Valences 277 • The Porter-Lawler
Extension 278

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xiv Contents

10-3b Equity Theory 278


10-3c Goal-Setting Theory 279
Goal Difficulty 279 • Goal Specificity 280
10-3d Implications of the Process Perspectives 281
10-4 Reinforcement Perspectives on Motivation 281
Leading the Way: To Reward, or to Punish?. . . That Is the Question 282
10-4a Kinds of Reinforcement in Organizations 282
10-4b Providing Reinforcement in Organizations 283
10-4c Implications of the Reinforcement Perspectives 284
10-5 Popular Motivational Strategies 284
10-5a Empowerment and Participation 284
Areas of Participation 285 • Techniques and Issues in Empowerment 285
10-5b Alternative Forms of Work Arrangements 286
Variable Work Schedules 286 • Flexible Work Schedules 286
Job Sharing 287 • Telecommuting 287
10-6 Using Reward Systems to Motivate Performance 287
10-6a Merit Reward Systems 288
10-6b Incentive Reward Systems 288
Incentive Pay Plans 288 • Other Forms of Incentive 289
Doing Business on Planet Earth: M(otivation) p(er) G(allon) 290
10-6c Team and Group Incentive Reward Systems 290
Common Team and Group Reward Systems 291 • Other Types of Team and Group
Rewards 291
10-6d Executive Compensation 292
Standard Forms of Executive Compen­sation 292 • Special Forms of Executive
Compensation 292 • Criticisms of Executive Compensation 293
10-6e New Approaches to Performance-Based Rewards 294
Summary of Learning Outcomes and Key Points 294
Discussion Questions 295
Building Effective Interpersonal Skills 296
Building Effective Decision-Making Skills 296
Skill-Building Personal Assessment 297
Management at Work 298
You Make the Call: What Makes SAS a Great Place to Work? 300

C h a p t e r 11
Leadership and Influence Processes 301
11-1 The Nature of Leadership 303
11-1a The Meaning of Leadership 303
11-1b Leadership and Management 303
11-1c Leadership and Power 305
Legitimate Power 305 • Reward Power 305 • Coercive Power 305
Referent Power 305 • Expert Power 306 • Using Power 306
11-2 Generic Approaches to Leadership 307
11-2a Leadership Traits 307
11-2b Leadership Behaviors 308
Michigan Studies 308 • Ohio State Studies 308 • Leadership Grid 309
11-3 Situational Approaches to Leadership 311
11-3a LPC Theory 312
Favorableness of the Situation 312 • Favorableness and Leader Style 313
Flexibility of Leader Style 314
11-3b Path–Goal Theory 314
Leader Behavior 314 • Situational Factors 314
11-3c Vroom’s Decision Tree Approach 315
Basic Premises 316 • Decision-Making Styles 316 • Evaluation and
Implications 317
11-3d The Leader–Member Exchange Approach 318

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents xv

11-4 Related Approaches to Leadership 319


11-4a Substitutes for Leadership 319
11-4b Charismatic Leadership 320
A World of Difference: Following Her Own Path 321
11-4c Transformational Leadership 321
11-5 Emerging Approaches to Leadership 322
11-5a Strategic Leadership 322
Doing Business on Planet Earth: Leading Sustainably 322
11-5b Cross-Cultural Leadership 323
11-5c Ethical Leadership 323
11-6 Political Behavior in Organizations 324
11-6a Common Political Behaviors 324
11-6b Impression Management 324
11-6c Managing Political Behavior 325
Summary of Learning Outcomes and Key Points 326
Discussion Questions 327
Building Effective Interpersonal Skills 327
Building Effective Conceptual Skills 328
Skill-Building Personal Assessment 329
Management at Work 330
You Make the Call: Two Bites from the Same Apple 331

C h a p t e r 12
Communication in Organizations 332
12-1 The Interpersonal Nature of Organizations 335
12-1a Interpersonal Dynamics 336
12-1b Outcomes of Interpersonal Behaviors 336
12-2 Communication and the Manager’s Job 337
12-2a The Problems with Communication 337
12-2b A Definition of Communication 338
12-2c The Role of Communication in Management 338
12-2d The Communication Process 339
12-3 Forms of Communication in Organizations 342
12-3a Interpersonal Communication 342
Oral Communication 342 • Nonverbal Communication 342
Written Communication 343 • Choosing the Right Form 344
12-3b Communication in Networks and Work Teams 345
12-3c Organizational Communication 345
Vertical Communication 346 • Horizontal Communication 347
12-3d Digital Communication 347
Formal Information Systems 347
Tech Watch: Thinking (and Talking) on Your Feet 347
Personal Electronic Technology 348
12-4 Informal Communication in Organizations 349
12-4a The Grapevine 350
12-4b Management by Wandering Around 351
12-5 Managing Organizational Communication 352
12-5a Barriers to Communication 352
Individual Barriers 353 • Organizational Barriers 354
12-5b Improving Communication Effectiveness 354
Individual Skills 354
Leading the Way: In Communication We Trust 356
Organizational Skills 357
Summary of Learning Outcomes and Key Points 358
Discussion Questions 358

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xvi Contents

Building Effective Technical Skills 359


Building Effective Interpersonal Skills 360
Skill-Building Personal Assessment 360
Management at Work 363
You Make the Call: A Big Desk May Say it All 365

C h a p t e r 13
Managing Work Groups and Teams 366
13-1 Groups and Teams in Organizations 368
13-1a Types of Groups and Teams 368
Functional Groups 368 • Informal or Interest Groups 369
Task Groups 370
Doing Business on Planet Earth: Cooking Up Sustainability 371
13-1b Why People Join Groups and Teams 372
Interpersonal Attraction 372 • Group Activities 372 • Group Goals 373
Need Satisfaction 373 • Instrumental Benefits 373
13-1c Stages of Group and Team Development 373
13-2 Characteristics of Groups and Teams 375
13-2a Role Structures 375
Role Ambiguity 375 • Role Conflict 375 • Role Overload 376
13-2b Behavioral Norms 377
Norm Generalization 377 • Norm Variation 377 • Norm Conformity 377
13-2c Cohesiveness 378
Factors That Increase Cohesiveness 378 • Factors That Reduce Cohesiveness 378
Leading the Way: Primed for Power 379
Consequences of Cohesiveness 380
13-2d Formal and Informal Leadership 380
13-3 Interpersonal and Intergroup Conflict 381
13-3a The Nature of Conflict 381
13-3b Causes of Conflict 382
Interpersonal Conflict 382 • Intergroup Conflict 383 • Conflict Between
Organization and Environment 383
13-4 Managing Conflict in Organizations 384
13-4a Stimulating Conflict 384
13-4b Controlling Conflict 385
13-4c Resolving and Eliminating Conflict 386
13-4d Negotiation 386
Summary of Learning Outcomes and Key Points 388
Discussion Questions 388
Building Effective Conceptual Skills 389
Building Effective Communication Skills 389
Skill-Building Personal Assessment 390
Management at Work 391
You Make the Call: An Open Invitation to Innovation 393

PART 5 Controlling

C h a p t e r 14
Basic Elements of Control 395
14-1 The Nature of Control 397
14-1a The Purpose of Control 397
Adapting to Environmental Change 397 • Limiting the Accumulation of Error 398
• Coping with Organizational Complexity 398 • Minimizing Costs 399
14-1b Types of Control 399
Areas of Control 399 • Levels of Control 399 • Responsibilities of Control 400

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Contents xvii

14-1c Steps in the Control Process 401


Establishing Standards 401 • Measuring Performance 402 • Comparing
Performance Against Standards 402 • Considering Corrective Action 403
Beyond Traditional Business: The Intelligent Way to Run a Nonprofit 404
14-2 Operations Control 404
14-2a Preliminary Control 405
14-2b Screening Control 405
14-2c Postaction Control 406
14-3 Financial Control 406
14-3a Budgetary Control 407
Types of Budgets 407 • Developing Budgets 408 • Strengths and Weaknesses of
Budgeting 409
14-3b Other Tools for Financial Control 409
Financial Statements 409 • Financial Audits 410
Tech Watch: Analytics and the Future of Auditing 411

14-4 Structural Control 411


14-4a Bureaucratic Control 412
14-4b Decentralized Control 413
14-5 Strategic Control 413
14-5a Integrating Strategy and Control 413
14-5b International Strategic Control 414
14-6 Managing Control in Organizations 415
14-6a Characteristics of Effective Control 415
Integration with Planning 415 • Flexibility 415 • Accuracy 415
Timeliness 415 • Objectivity 416
14-6b Resistance to Control 416
Overcontrol 416 • Inappropriate Focus 416 • Rewards for Inefficiency 417
Too Much Accountability 417
14-6c Overcoming Resistance to Control 417
Encourage Employee Participation 417 • Develop Verification Procedures 417
Summary of Learning Outcomes and Key Points 418
Discussion Questions 419
Building Effective Time-Management Skills 419
Building Effective Technical Skills 420
Skill-Building Personal Assessment 420
Management at Work 421
You Make the Call: Controlling the Cheesecakes 423

C h a p t e r 15
Managing Operations, Quality, and Productivity 424
15-1 The Nature of Operations Management 426
15-1a The Importance of Operations 426
15-1b Manufacturing and Production Operations 426
15-1c Service Operations 427
15-1d The Role of Operations in Organizational Strategy 427
A World of Difference: Dispensing Hope 428

15-2 Designing Operations Systems 428


15-2a Determining Product-Service Mix 428
15-2b Capacity Decisions 429
15-2c Facilities Decisions 430
Location 430 • Layout 430
15-3 Organizational Technologies 432
15-3a Manufacturing Technology 432
Automation 432 • Computer-Assisted Manufacturing 433 • Robotics 434
15-3b Service Technology 435

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xviii Contents

15-4 Implementing Operations Systems Through Supply Chain Management 435


15-4a Operations Management as Control 436
15-4b Purchasing Management 437
15-4c Inventory Management 437
Tech Watch: When the Colonel Ran Out of Chicken 438

15-5 Managing Total Quality 439


15-5a The Meaning of Quality 440
15-5b The Importance of Quality 440
Competition 440 • Productivity 441 • Costs 441
15-5c Total Quality Management 441
Strategic Commitment 441 • Employee Involvement 442
Technology 442 • Materials 442 • Methods 442
15-5d TQM Tools and Techniques 442
Value-Added Analysis 442 • Benchmarking 443 • Outsourcing 443
Reducing Cycle Time 443 • ISO 9000:2000 and ISO 14000 444
Statistical Quality Control 444 • Six Sigma 445
15-6 Managing Productivity 445
15-6a The Meaning of Productivity 445
Levels of Productivity 445 • Forms of Productivity 445
15-6b The Importance of Productivity 446
15-6c Productivity Trends 446
15-6d Improving Productivity 447
Improving Operations 447 • Increasing Employee Involvement 448
Summary of Learning Outcomes and Key Points 449
Discussion Questions 449
Building Effective Communication Skills 450
Building Effective Diagnostic Skills 450
Skill-Building Personal Assessment 451
Management at Work 452
You Make the Call: Out Supply-Chaining the King of Supply Chainers 453

Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Name Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
Organizational & Product Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476
Subject Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480

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Preface
Hundreds of books have been written for introductory management courses. As the theory,
research, and practice of management has grown and expanded, authors have continued to
mirror this expansion of material in their books. Writers have understood the importance
of adding new material about traditional topics, such as planning and organizing, while
simultaneously adding coverage of emerging newer topics, such as sustainability, ethics,
and social media. As a by-product of this trend, our traditional textbooks have grown lon-
ger and longer but also more difficult to cover in one course.
Another trend in management education is a focus on teaching in a broader context.
That is, introductory management courses are increasingly being taught with less emphasis
on theory alone and more emphasis on the application of concepts. Teaching students how
to apply management concepts successfully often involves focusing more on skills develop-
ment and the human side of the organization. This trend requires that books cover theoreti-
cal concepts within a flexible framework that enables instructors to make use of interactive
tools such as case studies, exercises, and projects. It also dictates that a text be as relevant
to students as possible. Hence, while this book draws examples and cases from older large
businesses like Ford, IBM, and General Electric, it also makes extensive use of newer firms
such as Google, Tesla, Netflix, Facebook, Starbucks, Urban Outfitters, and others.
Indeed, this book represents a synthesis of these trends toward a more manageable
and practical approach. By combining concise text discussion, proven pedagogical tools,
lively and current content, an emphasis on organizational behavior, and exciting skills
development material, Fundamentals of Management answers the need for a new approach
to management education. This book provides almost limitless flexibility, a solid founda-
tion of knowledge-based material, and an action-oriented learning dimension unique in
the field. Indeed, over half a million students were introduced to the field of management
using the first nine editions of this book. This tenth edition builds solidly on the successes
of the earlier editions.

Organization of the Book


Most management instructors today organize their course around the traditional manage-
ment functions of planning, organizing, leading, and controlling. Fundamentals of Man-
agement uses these functions as its organizing framework. The book consists of five parts,
with fifteen chapters.
Part One introduces management through two chapters. Chapter 1 provides a basic
overview of the management process in organizations, and Chapter 2 introduces students
to the environment of management. Part Two covers the first basic management function,
planning. Chapter 3 introduces the fundamental concepts of planning and discusses stra-
tegic management. Managerial decision making is the topic of Chapter 4. Finally, Chapter
5 covers entrepreneurship and the management of new ventures.
The second basic management function, organizing, is the subject of Part Three. In
Chapter 6, the fundamental concepts of organization structure and design are introduced
and discussed. Chapter 7 explores organization change and organizational innovation.
Chapter 8 is devoted to the management of human resources.

xix

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xx Preface

Many instructors and managers believe that the third basic management function, lead-
ing, is especially important in contemporary organizations. Thus, Part Four consists of five
chapters devoted to this management function. Basic concepts and processes associated with
individual behavior are introduced and discussed in Chapter 9. Employee motivation is the
subject of Chapter 10. Chapter 11 examines leadership and influence processes in organiza-
tions. Communication in organizations is the topic of Chapter 12. The management of groups
and teams is covered in Chapter 13.
The fourth management function, controlling, is the subject of Part Five. Chapter 14 intro-
duces the fundamental concepts and issues associated with management of the control pro-
cess. A special area of control today, managing for total quality, is discussed in Chapter 15.

Skills-Focused Pedagogical Features


Both the overarching framework and streamlined topical coverage make it possible to address
new dimensions of management education without creating a book so long that it is unwieldy.
Specifically, each chapter is followed by a proven, applied set of skills-based exercises and
related activities. These resources have been created to bring an active and a behavioral ori-
entation to management education by inviting students to solve problems, make decisions,
respond to situations, and work in teams. In short, these materials simulate many of the day-
to-day challenges and opportunities that real managers face.
The Summary of Learning Objectives and Key Points ties content and student learning
back to the objectives introduced at the beginning of the chapter and three kinds of Discus-
sion Questions (Review, Analysis, and Application) help transition from content mastery to
skills applications. Among the true skills-based exercises are two different Building Effective
Skills features organized around the set of basic management skills introduced in Chapter 1.
A Skills Self-Assessment Instrument exercise also helps readers learn something about their
own approach to management.
New to the tenth edition, each chapter also contains interesting boxed features, two per
chapter, centered around sustainability, leadership, technology, diversity, and nontradi-
tional settings. These features depart briefly from the flow of the chapter to highlight or
extend especially interesting or emerging points and issues related to boxed feature titles.
In addition to the end-of-chapter exercises, every chapter includes important time-tested
and proven pedagogy: learning objectives, a chapter outline, an opening case, key terms, pho-
tographs with captions, tables, figures, an end-of-chapter case with questions, and questions
tied back to the opening case.

Changes To The Tenth Edition


The tenth edition of Fundamentals of Management retains the same basic structure and for-
mat as the previous edition. However, within that framework the content of the book has been
thoroughly revised and updated. The following changes are illustrative of the new material
that has been added:
(1) New topical coverage related to both domestic and global economic conditions is
­included. The book also places greater emphasis on the services sector of the econ-
omy. Coverage of managerial and organizational implications of the 2020 COVID-19
­pandemic, the resulting economic impact of the pandemic on businesses, and other
topical issues has also been added. Moreover, all data regarding international business
activity, entrepreneurship and small businesses, and workforce diversity have been
updated to the most current figures available.
(2) Several of the newest management techniques are also included in this edition. Exam-
ples include prospect theory and evidence-based management. These and other new
techniques are discussed in several places in the book.
(3) The latest research findings regarding globalization, strategic management, organizing,
motivation, leadership, and control have been incorporated into the text and referenced
at the end of the book. Over 150 new articles and books are cited.

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Preface xxi

(4) Virtually all of the cases and boxed inserts are new to this edition of Fundamentals of
Management, while the few retained from earlier editions have been updated as needed.
They reflect a wide variety of organizations and illustrate both successful and less suc-
cessful practices and decisions.
(5) As noted earlier, this book features a rich and diverse array of end-of-chapter materials
to facilitate both learning and skill development. For this edition, a substantial portion
of this material has been replaced or substantially revised.

Supplements
Instructor Support Materials
• Instructor Companion Website: Instructors can find course support materials,
including Instructor’s Resource Manual, Test Bank files, and PowerPoint® slides.
• Instructor’s Manual: Designed to provide support for instructors new to the course,
as well as innovative materials for experienced professors, the Instructor’s Manual
includes activities and assessments for each chapter and their correlation to specific
learning objectives, an outline, key terms with definitions, a chapter summary, and
ideas for engaging with students–such as discussion questions, ice breakers, case
studies, and social learning activities that may be conducted in an on-ground, hybrid,
or online modality.
• Cengage Learning Testing Powered by Cognero: Cognero is a flexible online system
that allows you to author, edit, and manage test bank content from multiple Cengage
Learning solutions; create multiple test versions in an instant; and deliver tests from
your LMS, your classroom, or wherever you want.
• PowerPoint Lecture Presentation: The PowerPoint Lecture Presentations are closely
tied to the Instructor Manual, providing ample opportunities for generating classroom
discussion and interaction. They offer ready-to-use, visual outlines of each chapter,
which may be easily customized for your lectures.
• Guide to Teaching Online: This guide presents technological and pedagogical
considerations and suggestions for teaching the Management course when you can’t be
in the same room with students.
• Transition Guide: This guide highlights all of the changes in the text and in the digital
offerings from the previous edition to this edition.

Student Support Materials


• MindTap brings together quality learning and convenience through seamless, LMS
integrated access to a curated set learning tools designed intentionally for the Principles
of Management learner. Each MindTap follows a “Learn It, Apply It, Study It” structure
that guides students through bite sized learning exercises, followed by authentic
scenario-based application opportunities and then gives them the necessary tools to
prepare for quizzes and exams.
• WHY DOES THIS TOPIC MATTER TO ME? Each major part of the course is
introduced in MindTap with a “Why Does [This Topic] Matter to Me?” to help
showcase relevance and applicability of the material students are about to learn–in an
engaging, fun format.
• LEARN IT ACTIVITIES: New “Learn It” modules are designed to help students
learn the basics of theories and concepts presented in a chapter through digestible
summaries and randomized questions that help check their comprehension of the
chapter material.

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xxii Preface

• APPLY IT CHAPTER ASSIGNMENTS & CASE ACTIVITIES: “Apply It” Chapter


Assignments and Case Activities bridge the understanding of concepts with their r­ eal-
world applications in the practice of management.
• STUDY IT: The “Study It” module for each chapter includes Practice Tests powered by
A+ Test Prep, a student-powered practice exam tool that allows them to tailor practice
tests to fit their needs, and receive immediate feedback and links back to the material
they need to review. The “Study It” module also contains digital flashcards to help
students practice key terminology and a student-facing version of the PowerPoint slides
that accompany the text.
• YOU MAKE THE DECISION: You Make the Decision mini-simulation activities build
critical thinking and decision-making skills by challenging students to use what they
know about concepts and theories in the context of a scenario as it unfolds. Throughout
the scenario, the student would be provided with information and subsequently faced
with decisions. The scenario can change dynamically based on the decisions the
students make throughout the short simulation, resulting in different end points that
showcase the consequences of the decisions made along the way.

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Acknowledgments
I would like to acknowledge the many contributions that others have made to this book. My
faculty colleagues at Texas A&M University have contributed enormously both to this book
and to my thinking about management education. The contributions of Erin Hoelscher,
my student assistant, and Phyllis Washburn, my staff assistant, have been invaluable to
this revision. My colleague Brad Wesner also handled the revision of the communications
chapter. The fine team of professionals at Cengage Learning has been instrumental in the
success of this book. Joe Sabatino, Heather Mooney, Allie Janneck, Courtney Wolstoncroft,
Kate Begley Reed, Carol Moore, Chandrasekar Subramani, and Mohanarengan Dilli all
contributed in myriad ways to this edition. Their attention to detail, student and learning
focus, and emphasis on quality have been uniformly impressive.
Many reviewers have played a critical role in the continuous evolution and improve-
ment of this project. They examined my work in detail and with a critical eye. I would like
to tip my hat to the following reviewers, whose imprint can be found throughout this text:
Joseph Adamo (Cazenovia College), Sally Alkazin (Linfield College), Robert Ash
(Santiago Canyon College), Sherryl Berg-Ridenour (DeVry College–Pomona), Alain Broder
(Touro College), Murray Brunton (Central Ohio Tech), Sam Chapman (Diablo Valley
College), Elizabeth Anne Christo-Baker (Terra Community College), Gary Corona (Florida
Community College–Jacksonville), Dr. Anne Cowden (California State University),
Suzanne Crampton (Grand Valley State University), Thomas DeLaughter (University
of Florida), Anita Dickson (Northampton Community College), Joe Dobson (Western
Illinois University), Michael Dutch (University of Houston), Dale Eesley (University of
Nebraska–Omaha), Norb Elbert (Eastern Kentucky University), Teri Elkins (University
of Houston), Jan Feldbauer (Schoolcraft College), Tamela D. Ferguson (University of
Louisiana at Lafayette), Anne Fiedler (Barry University), Eugene Garaventa (College of
Staten Island), Phillip Gonsher (Johnson Community College), Patricia Green (Nassau
Community College), John Guess (Delgado Community College), Joseph S. Hooker, Jr.
(North Greenville College), David Hudson (Spalding University), George W. Jacobs (Middle
Tennessee State University), Tim McCabe (Tompkins Cortland Community College),
Garry McDaniel (Franklin University), Lauryn Migenes (University of Central Florida),
Christopher Neck (Arizona State University), Judy Nixon (University of Tennessee–
Chattanooga), Ranjna Patel (Bethune–Cookman College), Lisa Reed (University of
Portland), Virginia Rich (Caldwell College), Dr. Joan Rivera (Angelo State University),
Roberta B. Slater (Pennsylvania College of Technology), Bob Smoot (Hazard Community
College), Howard Stanger (Canisius College), Sheryl A. Stanley (Newman University),
Roy Strickland (Ozarks Technical Community College), Mike L. Stutzman (Mt. Mercy
College and Kirkwood College), Abe Tawil (Baruch University), Lynn Turner (California
Polytech University–Pomona), Barry Van Hook (Arizona State University), Ruth Weatherly
(Simpson College), and Mary Williams (Community College of Nevada).

xxiii

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xxiv Acknowledgments

My wife, Glenda, and our children, Dustin, Ashley, Matt, and Lura, are of course due the
greatest thanks. Their love, care, interest, and enthusiasm help sustain me in all that I do. And
my grandchildren, Griffin, Sutton, Drew, and Ben, bring joy to my heart and a smile to my
face every time I think about them.
I enthusiastically invite your feedback on this book. If you have any questions, sugges-
tions, or issues to discuss, please feel free to contact me. The most efficient way to reach me is
through email at rgriffin@tamu.edu.
R.W.G.

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CHAPTER 1

Understanding the
Manager’s Job

Learning Outcomes
After studying this chapter, you should be able to:
1-1 Describe management and the kinds of managers found in organizations.
1-2 Explain the four basic management functions.
1-3 Describe the fundamental management skills and the concept of manage-
ment as both science and art.
1-4 Explain the importance of history and theory to managers.
1-5 Explain the evolution of management thought through the classical,
behavioral, and quantitative perspectives.
1-6 Discuss the key contemporary management perspectives represented by
the systems and contingency perspectives.
1-7 Identify the major challenges and opportunities faced by managers
today.

I n this chapter, we examine the general nature of management, its dimensions, and its
challenges. We explain the basic concepts of management and managers, discuss the
management process, and summarize the origins of contemporary management thought.
We conclude this chapter by introducing critical challenges and issues that managers are
facing now and will continue to encounter in the future. First, however, let’s examine the
work of one successful manager, Reed Hastings.

Management in Action

Reed Hastings Creates Chaos with Netflix


“Don’t be afraid to change the model.”
—Netflix CEO Reed Hastings

Several years ago, Reed Hastings, a California entrepreneur, incurred a $40 late fee
at Blockbuster. “It was six weeks late,” he admits. “I had misplaced the cassette
[and] I didn’t want to tell my wife. . . . I was embarrassed about it.” The next day
he dropped off the VHS cassette and paid the late fee on his way to the local gym.
As it turns out, his itinerary for the day was quite opportune: In the middle of his
workout, he recalls, “I realized [the gym] had a much better business model. You
could pay $30 or $40 a month and work out as little or as much as you wanted.”
Thus was born the idea for Netflix—paying a monthly fee for unlimited video
rentals. But Hastings knew he needed to start slowly. So, when Netflix was
launched in 1997, its only real innovation involved the convenience of ordering
1

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2 PART 1 | An Introduction to Management

movies online and receiving and returning them by mail;


Netflix merely rented movies for $4 apiece plus $2 for
postage (and, yes, it charged late fees). Basically, the
customer base consisted of people who wanted to watch
movies without having to leave their home. But Hastings
and cofounder Marc Randolph then quickly moved to
test the subscription-based model, unlimited rentals

karen roach/Shutterstock.com
by mail for a flat fee, and, perhaps more important, no
due dates (and thus no late fees). Current customers
were first offered the opportunity to shift from their
pay-per-rental plans to subscription plans on a free, trial
basis and then given the chance to renew the subscription
plan on a paid basis. “We knew it wouldn’t be terrible,”
says Hastings, “but we didn’t know if it would be great.”
In the first month, however, 80 percent of Netflix users who’d tried the no-cost
subscription plan had renewed on a paid basis.
“Having unlimited due dates and no late fees,” said Hastings back in 2003, “has
worked in a powerful way and now seems obvious, but at that time, we had no idea
if customers would even build and use an online queue.” The “queue,” as any long-
time Netflix user will tell you, was the list of movies that the customer wanted to
watch. Netflix maintained your queue, followed your online directions in keeping
it up to date, and automatically sent you the next movie you wanted each time you
sent one back.
The essence of queuing—and of the original Netflix business model—is clearly
convenience. Today, with most users streaming content rather than using DVDs,
Netflix has replaced traditional queuing with menus that keep track of what shows
you have been watching and suggesting new ones related to your viewing habits.
Although the ability to enhance customer convenience, even when combined with
cost savings, often gives a company a competitive advantage in its industry, it
doesn’t always have the industrywide effect that it has had in the case of Netflix. Not
only did the Netflix subscriber model improve the service provided by the industry
in an unexpected way, but ultimately it also weakened the competitive positions
of companies already doing business in the industry—notably, Blockbuster.
Blockbuster eventually declared bankruptcy and its few remaining assets are now
owned by Dish Network. Netflix, meanwhile, has seen its market cap soar above the
$50 billion mark by mid-2016 with more than 61 million subscribers in 57 countries.
How had Hastings’s upstart company managed to put itself in such an enviable
position? For one thing, it got off to a fast start. In 1997, when DVDs were just being
test-marketed in the United States, Hastings and Randolph gambled that the new
medium would eventually overtake videocassettes as the format of choice for both
the home-movie industry and the home-movie renter. They were right, of course—
by 2002, one in four U.S. households owned a DVD player, but the number today is
more than nine in ten. (In any case, it would have cost about $4 to mail a videocas-
sette both ways compared to the $0.78 that it costs to ship a DVD back and forth.)
More important, as the first company to rent movies by mail, Netflix was the
first to establish a rental-by-mail customer base. At first, says Hastings, “people
thought the idea was crazy. But it was precisely because it was a contrarian idea
that [it] enabled us to get ahead of our competitors.” As Netflix has continued to
expand and nurture its subscriber base, it has also generated both brand recogni-
tion and brand loyalty. “Netflix has customer loyalty. It’s a passion brand,” explains
Hastings, who hastens to add that keeping customers happy is crucial “because the
more someone uses Netflix, the more likely they are to stay with us.”
Netflix also puts a premium on hiring the very best people. Hastings hires bright
people, pays them above-market wages, and provides innovative and interesting
benefits. For instance, Netflix employees can take as much vacation time as they

Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 1 | UNDERSTANDING THE MANAGER’S JOB 3

want so long as they perform their jobs at a high level. But at the same time, the firm
has very high performance standards and employees sometimes complain about
too much pressure. As Hastings says, “We treat our top performers very well. We
organization provide average employees with reasonable severance package[s].”
A group of people Today Netflix continues to be at the forefront of innovation and has established
working together a strong position in the growing video-on-demand market. In 2013, the company
in a structured and
obtained exclusive rights to distribute the original series The House of Cards,
coordinated fashion to
Hemlock Grove, Orange Is the New Black, and the revival of Arrested Development.
achieve a set of goals
Netflix soon began to expand its list of original offerings such as Russian Doll and
Unbelievable and by 2020 was showing more original series and movies than any
management other media outlet. All told, Netflix’s 61 million subscribers watch about 4 billion
A set of activities hours of programs every quarter on more than 1,000 different devices—indeed, on
(including planning a normal evening, Netflix accounts for over a third of all internet usage in North
and decision making, America! And viewership surged even further during the 2020 COVID-19 pandemic.
organizing, leading, and Never one to stand still, Reed Hastings continues to look for the “next big thing.”
controlling) directed at an
Unlike most traditional managers, Hastings doesn’t have an office. He simply wan-
organization’s resources
ders around headquarters, talking to people about their work and their ideas, and
(human, financial,
physical, and information) occasionally grabbing an empty chair or desk to check his email. When he needs
with the aim of achieving solitude to think and ponder major decisions, he retreats to a rooftop “cube” with
organizational goals in four glass walls overlooking the Santa Cruz Mountains. And from that cube, Hast-
an efficient and effective ings will continue to ponder his next set of moves.1
manner

1-1 AN INTRODUCTION TO MANAGEMENT


An organization is a group of people working together in a structured and coordinated
fashion to achieve a set of goals, which may include profit (Netflix, Starbucks, and Facebook),
manager the discovery of knowledge (the University of Nebraska or the National Science Foundation),
Someone whose primary
national defense (the U.S. Navy or Marines), the coordination of various local charities (the
responsibility is to carry
out the management
United Way of America), or social satisfaction (a fraternity or sorority).
process Managers are responsible for using the organization’s resources to help achieve its goals.
More precisely, management can be defined as a set of activities (including planning
efficient and decision making, organizing, leading, and controlling) directed at an organization’s
Using resources wisely in resources (human, financial, physical, and information) with the aim of achieving
a cost-effective way organizational goals in an efficient and effective manner. A manager, then, is someone
effective whose primary responsibility is to carry out the management process. By efficient, we
Making the right decisions mean using resources wisely in a cost-effective way. By effective, we mean making the right
and successfully decisions and successfully implementing them. In general, successful organizations are both
implementing them efficient and effective.2
Today’s managers face myriad interesting and challenging
situations. The average executive works at least 62.5 hours a
week; has enormous demands placed on his or her time; and faces
Axel Bueckert/Shutterstock.com

increased complexities posed by globalization, domestic competition,


government regulation, shareholder pressure, emerging technologies,
the growing impact of social media, and other technology-driven
uncertainties. Their job is complicated even more by rapid changes,
unexpected disruptions (such as the COVID-19 pandemic in 2020),
and both minor and major crises. The manager’s job is unpredictable
To be effective, businesses must produce products and fraught with challenges, but it is also filled with opportunities
that consumers are willing to buy. A company like Sony to make a difference. Good managers can propel an organization
could very efficiently produce portable cassette tape
into unprecedented realms of success, whereas poor managers can
players like this one but will not be successful.
devastate even the strongest of organizations.3

Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Another random document with
no related content on Scribd:
p. 94; and in Sir William Fraser’s The Earls of Cromartie, vol.
ii. p. 390.
[104] Home, History of the Rebellion, ch. viii.
[105] See Appendix, Cardinal York’s Memorial.
[106] Lyon in Mourning, vol. iii. p. 232.
[107] Lent to me by Lumisden’s great-grand-niece, Mrs. G.
E. Forbes, Edinburgh.
[108] The winter of 1741-42.
[109] Charles (Stuart), 5th Earl of Traquair; succeeded
1741; died 1764.
[110] See Appendix.
[111] William Macgregor or Drummond of Balhaldy.
[112] James Edgar, secretary to the Chevalier de St.
George. A younger son of David Edgar of Keithock,
Forfarshire. Entered the Chevalier’s service as secretary 1716,
and held that office for forty-seven years. Became Secretary of
State in October 1763, and died 24th September 1764,
predeceasing his master by fifteen months.
[113] Cardinal André Hercule de Fleury. Born 1653;
became French prime minister in 1726; died in January 1743.
[114] Donald Cameron, 19th of Lochiel, ‘the Gentle Lochiel’
of the ’45. He succeeded his grandfather as chief of the
Camerons in 1719, his father John (who died 1748) having
transferred his rights to his son. Donald Cameron died in
France, 1748.
[115] Sir James Campbell of Auchenbreck, 5th Baronet;
died 1756; father-in-law of Donald Cameron of Lochiel. His
wife was Janet, daughter of John Macleod of Macleod, and
aunt of Norman Macleod the chief in 1745.
[116] Charles (Douglas), 3rd Duke; born 1698; succeeded
1711; died 1778.
[117] William (Douglas), 3rd Earl of March; succeeded his
cousin as 4th Duke of Queensberry; died unmarried 1810. The
‘Old Q’ of George iii.’s reign.
[118] George (Keith), 10th and last Earl Marischal; born
1694; succeeded 1712. Joined Lord Mar in 1715, and
commanded the right wing of the Jacobite army at Sheriffmuir.
Forfeited and attainted. Participated in the Spanish Invasion of
1719. See Dickson, The Jacobite Attempt of 1719, Scot. Hist.
Soc., vol. xix. In 1744 was residing near Boulogne. Took no
part in 1745. Entered service of Frederick the Great. Pardoned
by George ii., 1759; died at Potsdam, unmarried, 1778.
[119] James Keith, brother of the 10th Earl Marischal; born
1696. Attainted for participation in the ’15. Entered the Spanish
army, and in 1728 the Russian army with the rank of major-
general. Although an attainted Jacobite, he visited London in
1740, and was received by George ii. as a Russian general
(Scots Mag., vol. ii. p. 43). In 1747 entered service of
Frederick the Great as field-marshal. Killed at the battle of
Hochkirchen 1758.
[120] And likewise to settle a correspondence with
Scotland the manner in which we had formerly conveyed
Letters being very precarious and at the same time so much
suspected that the Government had caused search the Ships
in which the Letters generally came, but by good fortune their
happened none to be aboard that time.
[121] Æneas Macdonald, a banker in Paris, fourth son of
Ranald Macdonald third of Kinlochmoidart. Accompanied
Prince Charles to Scotland. Surrendered in 1746. Condemned
to death but pardoned on condition of residing out of the
United Kingdom. Was killed in France during the Revolution.
[122] Amelot de Chaillou. French foreign minister, 1737 to
1744.
[123] Katharine Darnley, half-sister of the Chevalier;
daughter of James ii., by Katherine Sedley. Born 1682; died
1743. Third wife of John Sheffield, 1st Duke of Buckingham,
who died 1721.
[124] Colonel William Cecil. Long the Jacobite agent in
England. Relationship uncertain. In a memorandum in the
French Foreign Office he is called ‘oncle de Lord Salisbury.’
Was apprehended in 1744. His deposition, in which he denies
all knowledge of a plot, is given in Fitzroy Bell’s Murray’s
Memorials, p. 408.
[125] Secretary of the Duchess of Buckingham.
[126] Charles Smith, a merchant or banker in Boulogne.
His wife, daughter of Sir Hugh Paterson of Bannockburn
(Prince Charles’s host when besieging Stirling Castle in
January 1746), was aunt to Clementina Walkenshaw. Their
son married the heiress of Seton of Touch. The ceremony was
performed by Mr. William Harper of Edinburgh at Linlithgow on
the day of the battle of Prestonpans. Charles Smith, who had
come to Scotland for the event, posted out from Edinburgh
bearing the news of the victory to the Jacobite congregation.—
Ingram, A Jacobite Stronghold of the Church, p. 47.
[127] I daresay the Cardinal never shed a tear on that
Account nor indeed allowing his concern to be never so great I
think it reasonable to believe so great a minister would act the
part of a Child.
[128] If he had so mean an Opinion of these folks and their
memorials were so rediculous as they are represented he
must either have been quite doated and consequently not
capable to understand anything otherwise it would have been
no difficult matter to make him sensible of the absurdity of their
proposals.
[129] Maréchal de Maillebois, a great-nephew of Colbert;
commander-in-chief in the War of the Austrian Succession.
[130] If this was the cause of his death I must be of the
Opinion of a great many that he was then become an old
woman and incapable of any enterprise that required Courage
and Activity, and indeed all the world with these two
Gentlemen themselves owned him to be of a very frightened
timorous Disposition.
[131] It was at this Time Mr. Drummond told me the Story
of the Sweedish Troops and the Discoveries of it made by the
Queen of Spain, which I shall relate at large afterwards. (See
post, p. 22.)
[132] This thought was the least reason could assign to Mr.
Amalot for my coming over, as I could not tell him it was owing
to a letter we had received from Mr. D[rummond], which I have
repented of since, for I told him if he was instructed by the
Cardinal, as they said, he certainly would have let me see that
these Gentlemen had no reason to give such
encouragements, which would have at once shewed them in
their True Light. This Mr. Drummond and Lord Semple insisted
I should say to excite the French to Action and I then did not
think it any great crime to use them as they had often done us
by imposing upon them.
[133] I shall leave it to the Reader to determine how far this
answer of Mr. Amelot agrees with what Mr. D[rummond]
advances in his Letter and if it be at all reasonable to imagine
that the Cardinal had resolved upon an Invasion when the
person he had employed in this affair had never read the
Memorial given in concerning it nor even understood the
manner in which it was concerted and carried on in Scotland
and again whether or not Lord Semple had succeeded as he
braged in preventing much delay by perswading the Cardinal
to make Mr. Amelot privy to the whole affair.
[134] I mentioned before that the King had ordered a Sum
not exceeding £900 Ster yearly to be payed to Sir J[ames]
C[ampbell] provided money could be raised he had hitherto
gott no more than £200 Lord T[ra]q[uai]r had payed him so I
was instructed to know why it was not answered as promised,
which I accordingly did, when Mr. Drummond said he thought it
very odd that the people in Scotland could not give him that
small pension when Lord T[ra]q[uai]r had offered Lord Semple
credit for £1,000 the year before when in London. I told him
people had little money to spare and that since the Gentlemen
was in a manner starving I would write to the King about it as
directed, upon which he said in a passion I had better not do it
for it would hurt them in the King’s Eyes as it must look bad
that people who profered doing so much could not advance
such a trifle, and I remember he said the King would not fail to
look upon them as tamperers which I never did mention to
them looking upon it as the heat of passion. He then said as
he had all along made it his Business to advance their Interest
and Honour, he would fall upon a method of raising a sum of
money to the Value of 5 or 6,000£ upon a bond payable at the
Restoration with six per cent. of Interest and that D[uke of]
P[erth] L[ord] T[ra]q[uai]r L[ochie]l and I should bind for it and
that he would even endeavour to gett an equall sum for D[uke
of] P[erth] on L[ord] T[ra]q[uai]r’s particular Use upon the same
Conditions. As I then did not know my man I went on to what
he proposed and did not write to the King about it, neither did I
till after I found out the double fetch he had in it, he at this time
was applying to have a Pension settled upon himself which my
writing in behalf of Sir J[ames] C[ampbell] would certainly have
prevented as the King had ordered him to stay at home in the
view of receiving the forementioned Sum, then his proposing
to raise this sum for the D[uke] of P[erth]’s use was a means to
encourage him to advance him £100, which he desired I would
tell his Grace he would draw upon him at my leaving London,
which he accordingly gott.
[135] During all the time I was at London after my return
from Paris I keept it secret from Coll. Cicel and Mr. Smith that I
had ever been there, and gave it out that I had been in Kent
making a visit to one Doctor Rutton, an old fellow student at
Leyden, so upon the footing of my not knowing anything that
was passing I told Coll. Cicel in Conversation upon my return
to Scotland the King’s friends would inquire of me if I had not
been to waite of him and what news I had gott so begg to
know what I should say, he told me he at that time could say
nothing positively but if the French did not do something soon
the affairs of England in particular and Europe in general stood
in such a way that in three moneth time he would order affairs
so as to call the King over with his own attendance only this
Vaunt was so rediculous that I had great difficulty to keep my
Countinance and gave me a very low Opinion of every other
thing he said.
[136] One evening after I had waited an hour in L[ord]
T[ra]q[uai]r’s lodgings at Edinburgh till such time as he should
come in to talk with me about his journey to London he told me
he understood that I was no friend to Bishop Keith, and upon
asking what ground he had to think so, he told me that one Mr.
Gordon, a Roman Catholick Bishop, had informed him of it, it
seems Bishop Keith was of his acquaintance had been
complaining to him that I had not represented him in a
favourable Light. By which I conjectured that Keith had been
applying that way to be named Bishop of Edinburgh for how
should L[ord] J[ohn] Drummond have acquainted Lady
Clanronald of Mr. Rattrae’s being named, which was a thing
entirely foreign to both him and her if Keith had not been
endeavouring to procure that preferment through the interest
of the Roman Catholicks,[649] and Lord Drummond did write to
Lady Clanronald that I had procured an order for Bishop
Rattrae’s Election is certain, for it was by her means quite well
known in Edinburgh before I came back from London and Lord
T[ra]q[uai]r assured me from Bishop Gordon that L[ord] J[ohn]
had wrote it to Lady Clanranald.
[137] My Lord T[ra]q[uai]r made all the dispatch possible to
settle his affairs at home, being sensible how necessary it was
for him to be att London and sett out from his own house on
the sixth of Aprile.
[138] For this ecclesiastical episode in Murray’s career, see
Appendix.
[139] Thomas Rattray, D.D., laird of Craighall-Rattray,
Perthshire. Born 1684; consecrated bishop at large, 1727;
afterwards Bishop of Brechin, and subsequently of Dunkeld;
Primus, 1739; died 1743.
[140] See Introduction, p. xxiii.
[141] Thomas Cochrane; 6th earl; died 1737.
[142] Robert Freebairn, consecrated bishop at large, 1722;
Primus, 1731; Bishop of Edinburgh, 1733; died 1739.
[143] Drumelzier, a Peebleshire estate adjoining
Broughton. The proprietor was then Alexander Hay of
Drumelzier, and Whittinghame, East Lothian (the latter now the
property of Rt. Hon. A. J. Balfour); a grandson of the 1st Earl
of Tweeddale, ancestor of the Hays of Duns: born 1701; died
1789. He and his brother William were both Jacobites.
[144] I think there can be little doubt that this is the draft of
the lost letter searched for in vain by Mr. Fitzroy Bell at
Windsor (Murray’s Memorials, p. 50 n), and referred to by Mr.
Lang (History of Scotland, iv. 441).
[145] As Traquair left on April 6th (see ante, p. 17 and post,
p. 23) this letter was probably written in that month. Narsom is
a cipher name for John Murray.
[146] Robert Keith, kinsman and tutor of the 10th Earl
Marischal and his brother: born 1681; consecrated bishop at
large, 1727; Bishop of Orkney, Caithness and the Isles, 1731;
Superintendent of Fife, 1733; succeeded Rattray as Primus,
1743; died 1757. Author of a History of Scotland, and of the
well-known Catalogue of Scottish Bishops.
[147] James (Barry), 4th Earl of Barrymore. Born 1667;
died 1747. An ardent Jacobite, who sent his son to join the
French army when the invasion of 1744 was expected.
[148] French minister in London.
[149] It wont be amiss to insert here the Story mentioned
before about the design of sending over some Swedish Troops
which my Lord T[ra]q[uai]r mentioned to me on his return from
London the last time he went up. Mr. Drummond told me at
Paris as an Instance of the sincere intention the Cardinal had
to serve the King, that he was sensible of the great hatred the
English bore to the French and for that reason proposed to the
Spanish Ambassador at Paris, Campo Florido, that provided
his master would take 10,000 Swedes into his pay he would
endeavour to procure them by the means of some of the chief
nobility, the King[650] not being to be trusted on that head as
he was looked upon as friends to the Family of Hanover and
would take care to have them transported, that the Spanish
Ambassador immediately wrote to his Master who sent back
an answer Willing to pay the Troops but upon some condition
which I now cannot charge my memory with, this the Cardinal
took highly amiss and told him that his Master was not to
bargain with in such cases, upon which the Spanish
Ambassador immediately dispatched a Courier, but before the
return of it their was a paragraph in the Amsterdam Gazette
telling that the King of Spain and some of his Ministers were
carrying on a scheme of great consequence but being known
by the Queen was prevented. It seems as he said the Queen
had been informed of it by some of the Ministers and judging
that should it be putt in execution it would necessarily putt an
end to war with England that she was very fond of and to putt
a stop to it she putt in that paragraph in the Amsterdam
Gazette to the Cardinal which had its object for their was not
any more mention made of it.
[150] It was no great wonder then I was deceived of his
Lordship having not the least reason to suspect, and he a little
shy cunning fellow on all occasions professing an attachment
to nothing but truth and most disinterested loyalty.
[151] This must have proceded from wrong information for
since that time they have made considerable levys and
everybody agrees their are not above ten or eleven thousand
in the Island.
[152] i.e. George ii.
[153] This was in the year 1737. If Gordon of Glenbucket
went over to Rome, so far as ever I could learn without having
any authority from the Gentlemen in the Highlands, unless it
was from his son-in-law Glengary and General Gordon,[651]
praying the King to come to Scotland that all were ready to rise
in arms; but His Majesty was too wise to give in to such a rash
and inconsiderate a project and sent over Captain Will
Hay[652] to have the Opinion of his friends by which he might
judge how far what Glenbucket had said was to be credited.
Mr. Hay sent for me then in Holland and insisted upon my
coming which I did, but I believe found few people of
Glenbucket’s Opinion save the late Lord Kinmore[653] who I
went to the Country and brought to toun to see him; but the
case was now greatly altered as all the World were becoming
sensible of; that the Interest of Great Britain must ever be
sacrificed to that of Hanover as long as this family continued
upon the Throne; that Parliamentary Schemes were nothing
but Chimerical, together with the few Troops that were left in
the Island and the distance they were then from the Coast
which prevented their coming in time before the Country was
reduced; as likewise the miserable prospect of the Country
being ruined by the vast standing Army that would necessarily
follow upon a peace as the Levys during the War would be
considerable and no prospect of a reduction after their Return
but rather a Certainty of their being continued; this seeming
the fairest opportunity to bring us under a military Government.
These and many other reasons made L[ochie]l be of Opinion
that now was the time to strike a bold stroke for the King, and
by Sir A[lexander] M[acdonald]’s letter to the Duke of P[erth], it
would seem these reasons did influence him and were
sufficient Grounds for the proposal.
[154] John (Lindsay), 20th earl, born 1702. Entered
Russian army; was badly wounded at Krotzka, 1739, fighting
the Turks, and never properly recovered. First colonel of the
43rd (afterwards 42nd) Highlanders. Brig.-gen. at Fontenoy;
maj.-gen. 1745. Came to Scotland February 1746, and
commanded the Hessian troops under the Prince of Hesse in
Stirling and Perthshire. Died 1749.
[155] Née Hon. Anne Stewart, daughter of Alexander, 6th
Lord Blantyre. Died March 1743.
[156] i.e. John Murray.
[157] This is evidently the letter that Murray complains
bitterly Traquair showed to Balhaldy, and on his advice
destroyed (Murray’s Memorials, pp. 58-60).
[158] This Letter I wrote in the smoothest stile possible
purposely to show him that the King’s friends were so far from
having any Inclination to Dictate to him, that on the Contrary
they wished by all means to have him Heartily to promote the
Restoration, and shewed the letter to Lord T[ra]q[uai]r and
L[ochiel]l before I gave it his Lordship to carry and they both
approved of it.
[159] I had mentioned in my Letter to the King that the Ship
by which our Letters used to come was much suspected and
had been searched, so one of my Errands was to have a new
Conveyance settled which was done from London to Paris by
Mr. D[rummond] but could be so easily done from London
here.
[160] His Grace the Duke of P[erth] when I had the honour
of seeing him at York on my Road, desired I would acquaint
his Majesty that he had a Scheme for taking Stirling Castle
and desired His Majesty would impower him upon the Seizing
of it to give a commission to whom he should think fitt to name
as Governour for the Time it was garrisoned with his men as
they would the more willingly obey if the Commander was
named by him, but told me no particulars of his project neither
did he since when I told him what the King had wrote.
[161] Mr. Edgar having wrote about it in a former Letter
occasioned my telling him that it was borrowed by Lord
T[ra]q[uair].
[162] A frequent cipher name for the Chevalier de St.
George.
[163] Mr. Drummond told when at Paris that the method he
had taken with the Gentlemen of the highlands was this. He
talked to them of the situation of the Country and that a
Restoration was the only thing would save us, with a great
deal more to this purpose, which brought all those that inclined
that way to declare how sensible they were of it and that they
were very willing to promote it so soon as an Occasion should
offer; upon which he told them that it was impossible for the
King to undertake any things not knowing who were his friends
and that he thought they should take care to acquaint the King
of it, then it was natural for them to say they were contented
his Majesty was informed it, but did not know of a method how;
upon which he told them that he would not absolutely promise,
but would endeavour to fall upon a method to acquaint him.
This I took to be a safe way for the person that engaged them
and as his Majesty was not quite satisfied with it as he said he
desired me to write my Opinion of it which to the best of my
Remembrance was in a few words, that I thought no Body
would be so rediculous as to inform against themselves by
telling they had given a Commission to such a person to ye
King as it must redound to their own disadvantage for as their
was none present when the matter was spoke off to a person
that was to deliver it had no more to do but deny it and his not
engaging absolutely to make it known was keeping his
correspondence a secret, for which reasons I was then of
opinion that the same method might be followed in the Low
Country, but upon trial found it almost impossible and
dangerous, first, because the Generallity are not so loyally
inclined as in the Highlands and consequently not so easily
brought to speak their mind, and the next place they have no
following, they Generally tell you, of what use is the King’s
knowing that I wish him well, I am only single Person, that can
be of little Service, thirdly the present Government has been at
pain to perswade people; the King is betrayed and that passes
at Rome, but what they are fully informed off which makes
people shy and affraid to have any dealings that way as they
are near the Court of Justice and less able to shift for
themselves, and fourthly, when a number of those people
come to be spoke to they will some of them especially who are
not brought all length in confidence impart to the other that
such a man talked so and so, whereby the thing may come to
be known and render it dangerous for the persons, all this
occur’d to me upon serious reflection and found the difficulty of
it, upon talking to some with folks here in that stile after my
return and succeeded with none but two Mr. N. of D—n and
Mr. C—r of Cr—g—th,[654] the last of which was drunk and
repented next day for which I gave it up.
[164] A non-juring minister at Edinburgh; father of Lord
Eskgrove.
[165] Sir Alexander Macdonald of Sleat (Skye), 7th
baronet. His first wife was Anne Erskine (died 1735), widow of
James (Ogilvy), 4th de jure Earl of Airlie (died 1731). The Earl
of Airlie mentioned here was his brother, 5th de jure earl (died
1761). He remained passive during the ’45, but his son Lord
Ogilvy raised two battalions for Prince Charles.
[166] Henry, Duke of York, afterwards cardinal.
[167] I cannot now recollect from whom I had that
information, but it was such that in the time I had reason to
Credit it.
[168] This was owing to Sir A[lexander] M[acdonald] having
promised for a number supperior to what Mr. Drummond had
marked him down for and at the same time as some folks were
laying to his Charge we did not believe it was thought fitt to
say something favourable of him as we had an entire
confidence in his honesty.
[169] Bishop Rattray died at Edinburgh, May 12, 1743.
[170] Battle of Dettingen, fought 16th June old style, or
27th new style, 1743.
[171] The Highland Regiment, originally the 43rd and
afterwards the 42nd, was raised in the name of John, 20th Earl
of Crawford (then lying wounded at Belgrade), in 1739, and
first embodied 1740. It was sent to London in 1743, and there
its members, who understood on enlistment that their service
was for the Highlands only, were persuaded that the
Government intended to send them to the plantations or to sell
them into slavery. When encamped at Highgate more than two
hundred of them left the camp by night in May 1743 and
started to march to Scotland. They were overtaken and
surrounded when near Oundle in Northamptonshire; they
surrendered and were marched prisoners to the Tower. Three
of their leaders were executed, Corporals Samuel and
Malcolm Macpherson and private Farquhar Shaw, all of Clan
Chattan.
[172] There had been heavy recruiting for the Scots
Brigade in the service of the Netherlands.
[173] Sir Thomas Gordon of Earlston, 3rd baronet, whose
grandfather (killed at Bothwell Bridge) and father were eminent
Covenanter leaders. Murray hoped to secure the adherence of
the Cameronian Covenanters through Gordon and Dr.
Cochran (see p. 51) and others. Cf. Murray’s Memorials, p. 54.
[174] Sir James Stewart; see Appendix.
[175] David (Wemyss), Lord Elcho, eldest son of James,
4th Earl of Wemyss. Joined Prince Charles at Edinburgh and
served through the campaign. Forfeited, and lived in exile until
his death in 1787. See his Memoir by Hon. Evan Charteris,
prefaced to A Short Account of the Affairs of Scotland, 1744-
46.
[176] Norman Macleod of Macleod, nineteenth chief; born
1706; died 1772. He engaged to join Prince Charles although
he came alone; but he changed his mind, was the first to
communicate the Prince’s landing to the Lord President, and
was the vindictive foe of Prince Charles throughout the whole
adventure.
[177] This was Alexander (or Alistair), Lord Lovat’s second
son, by his wife Margaret Grant, sister of Sir James Grant of
Grant. Born 1729, died unmarried 1762.
The school at Prestonpans was kept by Mr. John Halket
who had been tutor in Lovat’s family at Castle Downie. Peggy
Vint’s was a tavern in Prestonpans. Alexander Carlyle gives an
account of an extraordinary carouse there in 1741, at which
Lovat, Erskine of Grange, Halket, four Fraser henchmen,
young Lovat, Halket’s son, and Carlyle were present. Lovat
said Grace in French, and he ‘swore more than fifty dragoons’
at the fish. The claret was excellent and circulated fast. There
was a piper at the tavern, and the landlady’s daughter Kate
was ‘very alluring.’ Lovat, then seventy-five, and Grange not
much younger, warmed with wine, insisted on dancing a reel
with Kate Vint: ‘this was a scene not easily forgotten.’ A
banquet at Grange’s house of Preston, with a ‘new deluge of
excellent claret,’ finished what Carlyle calls ‘a very memorable
day.’—Carlyle, Autobiography, p. 58.
[178] About this time Sir J. Ca[mpbe]ll had the misfortune
to have his house burnt and lost everything in it, even to his
Body Cloaks. The deplorable situation he was in, never having
received any of the money promised him save 200£ call for
immediate assistance, and still the more so, that he had from
time to time borrowed Money upon his Honour to Return it in
such a time, as he had always reason to expect his pension
wou’d answer, his failing in which necessarly weakened his
Interest in the Country, for two reasons: 1st that he had no
money to enable him to entertain and visit his neighbours, and
2ndly So he was not able to keep his word to them from whom
he had borrowed it. Both shaggerined him and naturally made
him the less confided in other matters, for which reasons I
wrote presently to my Lord T[ra]q[uai]r, to write Mr. Drummond
then at London, that the money might be gott as he then had
the bond I mentioned before in his Custody, but he still putt it
off by saying that nothing could be done in it till he went over,
as the money was to be gott in france, which was a most
rediculous reason, for he told me in paris that it was through
Lord Semple he was to find it, which had it been the Case
there was no occasion for the things being delayed till he went
over, as he was to have no influence but ought to have sent it
to Lord Semple. However I don’t believe it will be found upon
inquiring yt, Lord Semple knew any thing of the matter for Mr.
Drummond would not agree that I should mention the thing to
him when at paris, so that I am fully convinced that it was as I
have said befor, all a fetch to prevent writing to the King about
it, for fear that he should be disapointed of the 4,000 Livres a
year he has since got settled upon him.
[179] Lord Lovat must surely have been deceiving or
deceived. It was the proud boast of the Monroes that the clan
had remained constant to Covenanting principles and to the
Protestant succession, being the only Whig clan that never
wavered. The Munroes were the only Highlanders who joined
Cope on his march to Inverness in 1745.
[180] John Boyle, 5th earl; succeeded as 5th Earl of Cork,
1751; a man of letters; friend of Swift, Pope, and Johnson;
died 1762.
[181] Of Wynnstay, 3rd Baronet, M.P. for Denbigh, an
ardent Jacobite, almost openly avowed.
[182] 7th February 1744.
[183] He is marry’d to a sister of mine, and upon the
Change of the Ministry was made keeper of the Signet,
through the Marquiss of Tweedales Interest in the Room of Mr.
Mcmillan the Writer.
[184] Thomas Hay of Huntington, East Lothian, advocate;
Keeper of the Signet, 1742-46; raised to the Bench as Lord
Huntington 1754. His brother, John Hay of Restalrig, W.S.,
succeeded John Murray as Secretary to Prince Charles on
Murray’s falling ill at Inverness, in 1746.
[185] Robert Dundas of Arniston, first President Dundas;
born 1685; was Lord Advocate, 1720-25; raised to the Bench
as Lord Arniston 1737; became Lord President on the death of
Duncan Forbes of Culloden 1748; died 1753. He was the
father of Henry (Dundas), 1st Lord Melville.
[186] Sir John Inglis of Cramond, Postmaster-General of
Scotland.
[187] Alexander Arbuthnott of Knox, merchant in
Edinburgh; grandson of the 1st Viscount Arbuthnott; became
Commissioner of Customs 1742; died 1769.
[188] Andrew Fletcher, Lord Milton, nephew of Andrew
Fletcher of Saltoun the great opposer of the Union. Born 1692;
elevated to Scottish Bench 1724; Lord-Justice-Clerk 1735-48;
died 1766.
[189] Joshua Guest, born 1660; Lieut.-General 1745; died
1747. This is the only categorical statement which I am aware
of that Guest was Commander-in-Chief in Scotland before the
appointment of Sir John Cope (18th February 1744). Cf. Book
of Old Edinburgh Club, 1909, p. 17.
[190] Hunter of Polmood was buried in Drumelzier
Churchyard on Thursday, February 23, 1744, which dates this
incident. His son, Charles Hunter, was married to Murray’s
sister, Veronica.
[191] William M‘Dougall, wine merchant in Edinburgh, a
brother-in-law of John Murray’s. See Memorials, pp. 66, 301,
311.
[192] Probably Dr. Cochran of Roughfoil, a physician in
Edinburgh. He may have been a connection of Murray’s,
whose aunt Margaret was married to Alex. Cochran of
Barbachlaw. Cf. Memorials, pp. 38, 54.
[193] John M‘Leod of Muiravonside, Stirlingshire, an
advocate. His son, Alexander, was A.D.C. to Prince Charles.
[194] Hartree, a Peeblesshire estate, in Kilbucho Parish,
about seven miles from Broughton. The laird of Hartree, John
Dickson, was married to Murray’s aunt Anne.
[195] French Fleet wrecked, 25th February old style, 7th
March new style, 1744.
[196] On this occasion, as on a subsequent escape from
capture, the Duke took refuge in the Invercauld country. See
post, p, 271.
[197] Charles Stewart, 5th of Ardshiel, a cadet of Appin. He
led out the Stewarts of Appin in 1745. Fled to France after
Culloden, and died 1757. (He is the chief for whom Alan Breck
collected rents. See Kidnapped, by R. L. Stevenson, chap. ix.)
[198] Balhaldy.
[199] Probably House of Commons.
[200] Balhaldy.
[201] Balhaldy.
[202] The names in this letter have been deciphered partly
by comparison with other ciphers; partly from information given
by Murray in his Memorials; occasionally by conjecture, in
which last case the word ‘probably’ is prefixed.
[203] Sempill or Balhaldy.
[204] Probably 21st September 1744. Murray wrote two
letters to Prince Charles from Senlis, on 21st September
(which was a Wednesday). Both are given in Murray’s
Memorials, pp. 376, 379.
[205] Probably Captain Clephan of Villegass’s Regiment,
the second Scots regiment in the service of the Netherlands.
See Murray’s Memorials, pp. 101, etc., for this, and following
notes.
[206] Prince Charles.
[207] Rotterdam.
[208] Captain Anderson, also of Villegass’s Regiment.
[209] Officers of his regiment (probably).
[210] Colyear’s, that is the regiment of the Hon. W. P.
Colyear, son of the 1st Earl of Portmore, Colonel of the third
Scots regiment in the Netherlands.
[211] Lord Elcho.
[212] Prince Charles.
[213] Probably 30th September 1744.
[214] Dr. Barry.
[215] Probably Adam Cockburn, a hosier in Johnstone’s
Court, Charing Cross. See Murray’s Memorials, p. 454.
[216] Not quite intelligible, something probably omitted, but
apparently meaning that letters for the Prince are to be
addressed to the care of ‘Morris,’ an occasional pseudonym
for Charles Smith of Boulogne.
[217] Prince Charles.
[218] The King of France.
[219] Probably the English.
[220] Probably the Scots.
[221] A Restoration.
[222] Earl of Traquair.
[223] Scotland.
[224] Scotland.
[225] Perhaps ‘Skye’ referring to the clan of Sir Alexander
Macdonald, who was then in collusion with the Jacobites.
[226] Prince Charles.
[227] Probably Nisbet of Dirleton. See Murray’s Memorials,
p. 103.
[228] Probably England.
[229] Earl of Traquair.
[230] Sir James Steuart.
[231] Duke of Perth.
[232] Lochiel.
[233] Duke of Perth.
[234] Earl of Traquair.
[235] Prince Charles.
[236] Probably English and Scots.
[237] Macleod of Macleod.
[238] Sir James Steuart.
[239] Probably young Glengarry (whom Mr. Andrew Lang
identifies as Pickle the Spy).
[240] N.B.—I am satisfyd the reason for their so doing was
that they found themselves blown, and imagined Mr. Burnet
would soon drop them, for which they were resolved to prevent
him by refusing to Act, and thereby give themselves the Air of
significancy. As for the reason they give, in my Opinion it is
inexpressibly frivelous and even betraying of their own want of
a hearty Zeal, for their Masters Interest. For had I, either from
Roguery, Ignorance, or folly, deceived Mr. Burnet in what I
said, it was no reason for their Giving up a Scheme of such
Extensive consequence, which plainly shows its not from
principle they Act. At the same time I cannot see the least
ground to believe they had any scheme going on, as they kept
no correspondance with any of the Ministers save Mr. Orri,
[655] as I was informed whose department did not lead him to
treat of such like matters, neither was there then the least
thing for an Expedition. As to my advice to Mr. Burnet, it is
sufficient he knew it to be in every sense absolutely false, but
the view they had in so doing is too obvious not to be seen
through. They knew Kinny was just going over, and, as he is a
man of Consequence in the Country, could they have
influenced him against me they would thereby have broke the
force of my Representations, being satisfied I would not fail in
my arrival here to make known their shameful procedure to Mr.
Edwards friends, and I must observe since at it was a very
convenient time as Mr. Burnet seemed resolved to make the
Money they promised to procure for Arms, the touchstone of
their Veracity, and the frenches sincerity, so that their refusing
to act at that time prevented the Sd—v believing them baffled
men.
[241] Captain John Drummond, a nephew of Balhaldy’s.
[242] Prince Charles.
[243] Prince Charles.
[244] King.
[245] Rome.
[246] The Chevalier de St. George.
[247] Duke of Perth.
[248] Earl of Traquair.
[249] Lochiel.
[250] Scotland.
[251] James Fea of Clestrain (or Clesterton), in Stronsay,
constituted himself a Jacobite leader in Orkney and attempted
to raise men for the Prince. In March 1746 when Lord Macleod
took his regiment to Thurso, Mackenzie of Ardloch, invited by
Fea, went over to Stromness to raise men and money. None of
the islanders were willing to go out, and Ardloch declined to
take unwilling recruits although Fea offered to press some
men. Ardloch, however, carried off £145 of cess and a quantity
of smuggled brandy. For his indiscretion, Fea’s house of
Sound in the island of Shapinsay was burnt down in May by
the crews of a squadron sent to hunt down Jacobites, while
Fea concealed himself in Caithness until the passing of the Act
of Indemnity. (See Allan Fea, The Real Captain Cleveland, p.
175; L. in M., ii. 337.)
[252] A battle fought at Altimarlach three miles west of
Wick, in 1680, between George Sinclair of Keiss, afterwards
7th Earl of Caithness and Sir John Campbell of Glenurchy,
afterwards 1st Earl of Breadalbane. Sinclair’s kinsman the 6th
earl, falling into debt and having no children, had disponed his
titles, property and heritable jurisdictions to Sir John Campbell,
the principal creditor, who married the earl’s widow in 1678,
having managed the previous year to secure a patent from
Charles II. as Earl of Caithness. Sinclair of Keiss resisted his
claims by force, and Campbell marched an army of his own
men and some royal troops to Caithness. The first advantage
was with the Sinclairs, who celebrated the event with drunken
revelry aggravated by finding a whisky-laden ship strategically
stranded by the Campbells in Wick harbour. Next day the
Sinclairs were defeated. It was on this occasion that the air
‘The Campbells are coming’ was composed by Finlay Macivor
the celebrated piper of Breadalbane. (Calder, Hist. of
Caithness, p. 162.) The courts found later that Keiss
(grandson of the 5th earl) was entitled to the Caithness
earldom; Sir John Campbell was compensated by being
created Earl of Breadalbane in 1681, but with the precedency
of the Caithness grant 1677.
[253] This Mr. Gilchrist is scathingly treated in The Lyon (iii.
36). He went ‘to Edinburgh and thence to London to
misrepresent and asperse the bulk of the Caithness gentry as
enemies to the present establishment.’ He is further said to
have collected 250 guineas for himself and to have made his
friends ‘believe that he could not continue in Caithness for the
wicked Jacobites who had threatened to take away his life and
destroy his family.’ The writer, a non-juring minister, who had
been a prisoner in London, adds sententiously ‘Honest Whigry
that never thinks shame of lying for worldly interest!’
[254] George Sinclair of Geese, afterwards captured at
Dunrobin, was the only Caithness Sinclair of position who
joined the Jacobite army. Lord Macleod marched through
Caithness in March 1746, but though the proprietors professed
Jacobite sympathies, very few joined his standard. (Fraser,
The Earls of Cromartie, ii. 398.)
[255] Sir James Stewart of Burray, Orkney, took no active
part in the Rising, but he was apprehended on suspicion in
May 1746, and taken prisoner to London, where he died of
fever in the New Gaol, Southwark, the following August.
[256] George (Mackay), 3rd Lord Reay, b. 1678; suc. his
grandfather c. 1680; supported government in 1715; was
largely instrumental in establishing the presbytery of Tongue
1725; d. 1748.
[257] William (Gordon-Sutherland), 16th earl; b. 1708; suc.
his grandfather 1720; d. 1750. His wife was Lady Elizabeth
Wemyss, aunt of Lord Elcho of the ’45. His father acted
vigorously against the Jacobites in ’15 and ’19.
[258] Assynt in ancient times was the territory of the
MacNicols (or MacRyculs or Nicolsons), but in the time of
David ii. Torquil Macleod iv., of Lewis, married the heiress and
obtained the lands. The MacNicols emigrated to Skye, where
they have been for centuries. Macleod’s second son inherited
Assynt, and there were twelve Macleod lairds. The last of
these was Neil Macleod who was tried in 1666, and again in
1674, for betraying the great Marquis of Montrose and other
crimes. He was acquitted, but, probably owing to the expense
of the trials, he fell into debt, and was driven from his lands
which were acquired by the Mackenzies. Cf. p. 107, n. 1.
[259] See post, p. 96.
[260] The writer is wrong here. It was the first earl’s
grandfather, Sir Roderick Mackenzie (1579-1626), the terrible
Tutor of Kintail who married Margaret heiress of Torquil
Macleod of Lewis and Cogeach. George (Mackenzie), 1st Earl
of Cromarty (1630-1714), was the antiquary. He was an
original member of the Royal Society (London), founded 1662.
[261] See post, p. 104.
[262] A battle at Sgeir na Caillich on Lochalsh, between the
Straits of Kylerhea and Kyleakin. According to the Clan Donald
historians, the battle was fought in 1603. It was not Glengarry
(Donald, 7th of Glengarry, who died in 1645, aged 102), but
his eldest son Angus, ‘Young Glengarry,’ who was killed.
[263] Now called Glenshiel. The church was erected in the
hamlet of Muick.
[264] It is hardly likely that the Macraes will accept this
suggestion of descent without strong corroboration which does
not seem to exist. A very different origin is given by the Rev.
Roderick Morison, minister of Kintail in 1793: ‘It is generally
allowed that the Mac Raes emigrated from the braes of Aird,
on the Lovat estate, to this place, though what induced them to
prefer the mountains to the plains is not universally agreed
upon, yet certain it is, that long after their residence in Kintail,
they maintained a firm alliance with the Frasers of Aird. The
tradition which prevails, that an inscription was set up nigh the
entrance to Lovat House, bearing “That no Mac Rae must
lodge without, when a Fraser resides within,” is not wholly
without foundation. When the Mac Raes first entered Kintail,
there were several clans inhabiting it, particularly the Mac
Aulays, of whom no vestige now remains. The Mac Lennans, a
small tribe in the parish of Glensheal, were the only people
that would not yield. These Mac Lennans, at the battle of
Auldearn, were intrusted with Seaforth’s colours. The novelty
of the preferment roused them to action and stubborn
resistance, which proved fatal to the clan, for many were slain;
and their widows, 18 in number, were afterwards married to
Mac Raes. The boundaries which divide the Mac Raes from
the Mac Lennans are marked by a river which runs into
Lochduich; but common observation may easily trace a line of
distinction from the difference in their language and accent.’
Mr. Morison gives the derivation of the name as Mhac Ragh,
the son of good fortune, applied by the founder to his son after
some successful exploits.—(Statistical Account of Scotland, vi.
242; the story of the great slaughter of Maclellans at Auldearn
is modified by latest investigators.) The word Ragh or Rath
may mean either ‘good fortune’ or ‘grace,’ and the latest clan

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