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MANAGEMENT 16E
Stephen P. Robbins
San Diego State University
Mary Coulter
Missouri State University
Lori K. Long
Baldwin Wallace University
To my wife, Laura
Steve
To my husband, Ron
Mary
Copyright © 2025, 2021, 2018 by Pearson Education, Inc. or its affiliates, 221 River Street, Hoboken, NJ 07030.
All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and
permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or
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Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the
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Preface xxi
Acknowledgments xxx
Glossary 522 • Name Index 534 • Organization Index 547 • Subject Index 550
iii
Contents
Preface xxi
Acknowledgments xxx
Boxed Features
Learning from Failure: Successful Managers Learn from Their Failures 9
Workplace Confidential: Dealing with Organizational Politics 13
Preparing For: Exams/Quizzes 14
Chapter Summary by Learning Objectives 14
Review and Discussion Questions 15
Preparing For: My Career 15
Ethics Dilemma 15
Skill Exercise: Developing Your Skills as a Manager 15
Working Together: Team Exercise 16
My Turn to Be a Manager 16
Case Application 1: Working with Artificial Intelligence 17
Case Application 2: Nike: Taking Customer Focus to a New Level 18
iv
Contents v
Boxed Features
Learning from Failure: Learning from Failing Start-up Businesses 29
Workplace Confidential: Looking Back to Move Forward 38
Preparing For: Exams/Quizzes 39
Chapter Summary by Learning Objectives 39
Review and Discussion Questions 41
Preparing For: My Career 41
Ethics Dilemma 41
Skill Exercise: Developing Your Skills as a Manager 41
Working Together: Team Exercise 42
My Turn to Be a Manager 42
Case Application 1: Uber’s CEO Gets Behind the Wheel 42
Case Application 2: Managers Still Need to Be Data-Driven 43
Intuition 51
Evidence-Based Management 52
Types of Decisions 52
Structured Problems and Programmed Decisions 52
Unstructured Problems and Nonprogrammed Decisions 53
Comparing Decision Types 54
Decision-Making Styles 54
Decision-Making Biases and Errors 56
Using Technology to Improve Decision Making 58
Big Data 59
Artificial Intelligence 59
Machine Learning and Analytics 60
Technology and Human Judgment 60
Boxed Features
Learning from Failure: James Dyson: A Man of a Thousand Failures 55
Workplace Confidential: Making Good Decisions 58
Preparing For: Exams/Quizzes 61
Chapter Summary by Learning Objectives 61
Review and Discussion Questions 62
Preparing For: My Career 62
Ethics Dilemma 62
Skills Exercise: Select the Best Alternative Decision-Making Skills 63
Working Together: Team Exercise 63
My Turn to Be a Manager 63
Case Application 1: Making Decisions with Bad Data 64
Case Application 2: A Major League Baseball Rule Change 65
Boxed Features
It’s Your Career: Reading an Organization’s Culture: Find One That Is a Right Fit for You 82
Workplace Confidential: Adjusting to a New Job or Work Team 83
Preparing For: Exams/Quizzes 86
Chapter Summary by Learning Objectives 86
Review and Discussion Questions 87
Preparing For: My Career 87
Ethics Dilemma 87
Skill Exercise: Developing Your Environmental Scanning Skill 87
Working Together: Team Exercise 88
My Turn to Be a Manager 88
Case Application 1: Environmental Uncertainty at HBO 89
Case Application 2: Organizational Culture at Vice Media 90
Boxed Features
Workplace Confidential: Working in a Diverse Environment 98
Learning from Failure: Denny’s Answer to Its Diversity Problem 109
Preparing For: Exams/Quizzes 111
Chapter Summary by Learning Objectives 111
Review and Discussion Questions 112
Preparing For: My Career 112
Ethics Dilemma 112
Skills Exercise: Developing Your Valuing Diversity Skill 113
Working Together: Team Exercise 114
My Turn to Be a Manager 114
Case Application 1: Gusto: Making a Difference in Gender Diversity 115
Case Application 2: Bring in Diversity . . . and Then What? 116
Boxed Features
It’s Your Career: Developing Your Global Perspective—Working with People from Other Cultures 133
Workplace Confidential: Succeeding in a Remote Job 136
Preparing For: Exams/Quizzes 137
Chapter Summary by Learning Objectives 137
Review and Discussion Questions 138
Preparing For: My Career 139
Ethics Dilemma 139
Skills Exercise: Developing Your Collaboration Skill 139
Working Together: Team Exercise 139
My Turn to Be a Manager 140
Case Application 1: Glencore: Conducting Business in Countries Where Others Might Not 140
Case Application 2: Lululemon Power of Three × 2 Growth Strategy 141
Boxed Features
Learning from Failure: From Greenwashing to Electric Cars 157
Workplace Confidential: Balancing Work and Personal Life 160
Preparing For: Exams/Quizzes 161
Chapter Summary by Learning Objectives 161
Review and Discussion Questions 163
Preparing For: My Career 163
Ethics Dilemma 163
Skills Exercise: Developing Your Trust Building Skill 163
Working Together: Team Exercise 164
My Turn to Be a Manager 164
Case Application 1: Chobani: A Different Kind of Yogurt Company 165
Case Application 2: Every Kid Fed: Addressing Childhood Hunger Through Social Entrepreneurship 166
Boxed Features
It’s Your Career: Planning Your Time 181
Workplace Confidential: When You Face a Lack of Clear Directions 186
Preparing For: Exams/Quizzes 188
Chapter Summary by Learning Objectives 188
Review and Discussion Questions 189
Preparing For: My Career 189
Ethics Dilemma 189
Skills Exercise: Making a To-Do List That Works and Using It 190
Working Together: Team Exercise 190
My Turn to Be a Manager 191
Case Application 1: Johnson Controls Using OpenBlue to Reach Net Zero 191
Case Application 2: Living Up to Goals at Tesla 192
Boxed Features
It’s Your Career: Learning Your Strengths and Weaknesses 201
Workplace Confidential: Developing a Career Strategy 203
Preparing For: Exams/Quizzes 210
Chapter Summary by Learning Objectives 210
Review and Discussion Questions 211
Preparing For: My Career 211
Ethics Dilemma 211
Skills Exercise: Developing Your Business Planning Skill 211
Working Together: Team Exercise 213
My Turn to Be a Manager 213
Case Application 1: Nvidia’s Gaming and AI Strategy 213
Case Application 2: Saving Lives Through Strategy at RapidSOS 214
Boxed Features
Workplace Confidential: Coping with Multiple Bosses 241
Learning from Failure: Return to Office? Workers Say No Way! 251
Preparing For: Exams/Quizzes 253
Chapter Summary by Learning Objectives 253
Review and Discussion Questions 254
Preparing For: My Career 255
Ethics Dilemma 255
Skills Exercise: Developing Your Acquiring Power Skill 255
Working Together: Team Exercise 256
My Turn to Be a Manager 256
Case Application 1: Making a Flat Organization Work at Punchkick 257
Case Application 2: Life as a Digital Nomad in Foreign Cities 258
External Factors That Affect the Human Resource Management Process 264
The Economy 264
Laws and Rulings 264
Demographics 266
Social and Cultural Factors 266
Labor Unions 266
Identifying and Selecting Competent Employees 267
Human Resource Planning 267
Recruitment and Decruitment 268
Selection 270
Technology in the Hiring Process 272
Training and Developing Employees 273
Orientation and Socialization 273
Employee Training 274
Developing Employees 276
Retaining Competent, High-Performing Employees 276
Performance Feedback 277
Compensation and Benefits 277
Boxed Features
Workplace Confidential: Job Search 269
It’s Your Career: Nailing the Behavior-Based Interview 280
Preparing For: Exams/Quizzes 281
Chapter Summary by Learning Objectives 281
Review and Discussion Questions 282
Preparing For: My Career 282
Ethics Dilemma 282
Skills Exercise: Developing Your Interviewing Skills 283
Working Together: Team Exercise 284
My Turn to Be a Manager 284
Case Application 1: Employees with Side Hustles: It’s No Secret 285
Case Application 2: Keeping Dealership Sales Staff from Leaving at Nissan 286
Boxed Features
Workplace Confidential: Coping with Job Stress 300
Learning from Failure: Giving Up on Google Glass 308
Preparing For: Exams/Quizzes 309
Chapter Summary by Learning Objectives 309
Review and Discussion Questions 310
Preparing For: My Career 310
Ethics Dilemma 310
Skills Exercise: Developing Your Change-Management Skill 311
Working Together: Team Exercise 311
My Turn to Be a Manager 312
Case Application 1: Change from Within at Google 312
Case Application 2: Microsoft: Innovative Again 313
Boxed Features
Workplace Confidential: An Abusive Boss 333
Learning from Failure: Troublesome Leader’s Personality 341
Preparing For: Exams/Quizzes 342
Chapter Summary by Learning Objectives 342
Review and Discussion Questions 343
Preparing For: My Career 344
Ethics Dilemma 344
Skills Exercise: Developing Your Shaping Behavior Skill 344
Working Together: Team Exercise 345
My Turn to Be a Manager 345
Case Application 1: Heat Waves Cause Employees to Walk Off the Job 346
Case Application 2: Getting Your Company’s Logo as a Tattoo 347
Boxed Features
It’s Your Career: What Motivates You? 355
Workplace Confidential: Feelings of Unfair Pay 366
xvi Contents
Boxed Features
It’s Your Career: Maximizing Outcomes Through Negotiation 396
Workplace Confidential: Handling Difficult Coworkers 399
Preparing For: Exams/Quizzes 400
Chapter Summary by Learning Objectives 400
Review and Discussion Questions 401
Preparing For: My Career 401
Ethics Dilemma 401
Skills Exercise: Developing Your Coaching Skills 402
Working Together: Team Exercise 402
My Turn to Be a Manager 402
Case Application 1: US Women’s Soccer: A Team in Transition 403
Case Application 2: Taylor Swift’s Bonuses Cause Their Own “Swift Quake” 404
Boxed Features
Learning from Failure: Childhood Lessons on Failure 419
Workplace Confidential: Dealing with a Micromanager 425
Preparing For: Exams/Quizzes 428
Chapter Summary by Learning Objectives 428
Review and Discussion Questions 430
Preparing For: My Career 430
Ethics Dilemma 430
Skills Exercise: Choosing an Effective Group Leadership Style Skill 430
Working Together: Team Exercise 431
My Turn to Be a Manager 431
Case Application 1: Transforming the Fashion Industry at Stitch Fix 432
Case Application 2: New Endorsements Give Power to College Athletes 433
Boxed Features
It’s Your Career: I’m Listening! 447
Workplace Confidential: An Uncommunicative Manager 449
Preparing For: Exams/Quizzes 454
Chapter Summary by Learning Objectives 454
Review and Discussion Questions 455
Preparing For: My Career 455
Ethics Dilemma 455
Skills Exercise: Developing Your Presentation Skills 456
Working Together: Team Exercise 456
My Turn to Be a Manager 457
Case Application 1: Communicating as the Company Grows at Hootsuite 457
Case Application 2: No Meetings? 458
Boxed Features
It’s Your Career: How to Be a Pro at Giving Feedback 473
Workplace Confidential: Responding to an Unfair Performance Review 475
Preparing For: Exams/Quizzes 484
Chapter Summary by Learning Objectives 484
Review and Discussion Questions 485
Preparing For: My Career 486
Ethics Dilemma 486
Skills Exercise: Managing Challenging Employees 486
Working Together: Team Exercise 487
My Turn to Be a Manager 487
Case Application 1: Feeding Chocolate to Cows 488
Case Application 2: Posting for Just Other Employees to See 488
Glossary 522
Name Index 534
Organization Index 547
Subject Index 550
Preface
Welcome to the 16th edition of Management. First published in 1984, this book has
become one of the world’s most popular introductory management texts. It’s used by
hundreds of US colleges and universities; it’s translated into Spanish, French, Russian,
Dutch, Bahasa, Korean, and Chinese; and there are adaptations for Australia, Canada,
India, and the Arab World.
New Author
The most significant addition to this revision is a new co-author, Dr. Lori Long, who
has been a contributor to previous editions of this text. Dr. Long took the lead in this
revision and worked to ensure that the text maintains its reputation for readability and
relevance while introducing fresh insights and perspectives.
With a blend of corporate, consulting, research, and teaching experience in
human resource management, leadership development, culture cultivation, and inno-
vation management, Dr. Long offers a well-rounded perspective that spans theory
and practice. Her ability to bridge the gap between research and real-world applica-
tion is a defining feature of her contributions to this edition.
Chapter 5
• Expanded to include emerging practices in equity and inclusion
• Expanded coverage of dimensions of diversity to include socioeconomic status
• New coverage of measuring and reporting on diversity, equity, and inclusion (DEI) work
• New table: Stages of DEI Strategy
Chapter 6
• New coverage on the impact of remote work capabilities
• New Workplace Confidential: Succeeding in a Remote Job
• New case: Lululemon Power of Three × 2 Growth Strategy
Chapter 7
• New section: Stakeholder Capitalism
• New coverage of reporting on social responsibility and sustainability efforts
including UN Sustainable Development Goals
• New Learning from Failure: From Greenwashing to Electric Cars
• New coverage on supporting ethical behavior including ethics officers and
protecting whistleblowers
Chapter 8
• New section: Static versus Scenario Planning
• New section: SMART Objectives
• New case: Johnson Controls Using OpenBlue to Reach Net Zero
Chapter 9
• Revised and expanded coverage of the strategic management process
• New case: Nvidia’s Gaming and AI Strategy
Entrepreneurial Ventures Module
• Revised chapter into a module
• Added coverage on the entrepreneurial mindset
Chapter 10
• New coverage of flexible workplace options
• New Learning from Failure: Return to Office? Workers Say No Way!
• New case: Life as a Digital Nomad in Foreign Cities
Chapter 11
• Expanded coverage of external influences on HR management, including social
and cultural factors
• New coverage on the use of technology in hiring
• New It’s Your Career: Nailing the Behavior-Based Interview
• New case: Employees with Side Hustles: It’s No Secret
Chapter 12
• New coverage on changing culture
• Expanded coverage on types of innovation including breakthrough and sustaining
innovations
• Revised and expanded coverage of strategies to stimulate innovation, including
coverage of design thinking
• New coverage of the Business Model Canvas and idea incubation
• New Learning from Failure: Giving Up on Google Glass
• New case: Microsoft: Innovative Again
Chapter 13
• New coverage on improving attitudes using artificial intelligence
• New Learning from Failure: Troublesome Leader’s Personality (WeWork)
• New case: Heat Waves Cause Employees to Walk Off the Job
xxiv Preface
Chapter 14
• New coverage of technology and motivation
• New section: Motivating Remote Workers
Chapter 15
• New section: Technology and Teams, including coverage of virtual collaboration
platforms and use of artificial intelligence
• New case: US Women’s Soccer: A Team in Transition
• New case: Taylor Swift’s Bonuses Cause Their Own “Swift Quake”
Chapter 16
• New Learning from Failure: Childhood Lessons on Failure (Sarah Blakely)
• New content on emergent leadership
• New case: New Endorsements Give Power to College Athletes
Chapter 17
• Revised and expanded coverage of technology and communication
• New case: No Meetings?
Chapter 18
• New coverage of Key Performance Indicators
• New case: Feeding Chocolate to Cows
High Readability
Every textbook author claims their books are highly readable. The reality is that few
actually are. Most appear to be written more for professors than for students. From
the first edition of this text, we were determined to make the field of management
interesting and engaging for students. How did we do this? First, we committed to a
conversational writing style. We wanted the text to read like normal people talk. And
second, we relied on extensive use of examples. As your senior author learned early in
his teaching career, students often forget theories, but they remember stories. So you’ll
find a wealth of current examples in this text.
Relevance
Since this text’s inception, we have subjected every theory and concept to our “So
What?” test. We ask ourselves: Why is a specific concept relevant? Why should a student
need to know this? This test has guided us in deciding what to include and exclude over
these many editions, as well as reminding us to explain the importance and relevance
of concepts when it might not be obvious.
Preface xxv
Developing Resilience
“Learning from Failure” boxes
illustrate how people like Sarah
Blakely, James Dyson, and J.K. Learning from
Rowling as well as companies FA I L U R E Giving Up on Google Glass
Created by Google’s X factory, the hope of a game- Where did Google go wrong? First, Google Glass was
like Google and Volkswagen have changing innovation in wearable products ended when an example of a solution looking for a problem. Although the
encountered setbacks, assessed Google finally stopped making Google Glass 10 years technology was an interesting idea, it was not fulfilling any cus-
after a lackluster launch. The product was first introduced tomer need. And it was a high price for technology that was not
what went wrong, gained new in- in 2013 at a retail price of $1,500, offering consumers needed. Customers also complained about privacy concerns
sights from their experience, and wearable glasses allowing them to access technology via
their face instead of having to pull out a phone. The smart
because wearers could easily hit record to capture video at any
time, making the glasses unwelcome in most public places.
bounced back. glasses were discontinued two years later, having never Issues around the purpose of the glasses and the
caught on. The failure was blamed on a clunky design, high cost seemed to plague corporate sales as well.
Resilience is a valuable quality high price, and concerns around privacy. When Google announced it would stop making the Glass
for students and employees. These In 2019 Google relaunched the product as the Glass Enterprise Edition, it was part of a larger cost-cutting ini-
Enterprise Edition, which shifted the focus from consum- tiative across the company. Although it made sense that
boxes can help students see the ers to businesses with an intent to sell to industries such as Google tried to save its investment in Google Glass by
manufacturing and logistics. But again, the product failed to relaunching it to a new market, ultimately the company lost
positive side of failures and how catch on, and the company announced in 2023 that it would millions of dollars by focusing on the novelty of technology
individuals and organizations have end production. instead of the needs of the customer.62
IT’S YOUR CAREER that convinced your boss to try your idea? Did you
create a time management process that helps you
Skills Exercises About the Skill • Seek additional information. Ask individuals to provide
Collaboration is the teamwork, synergy, and cooperation additional information. Encourage others to talk and
It’s not enough to “know” used by individuals when they seek a common goal. In many more fully explain suggestions. This brainstorming
cross-cultural settings, the ability to collaborate is crucial. opportunity can assist in finding creative solutions.
something. Students need When all partners must work together to achieve goals,
to be able to apply that • Don’t become defensive. Collaboration requires open
collaboration is critically important to the process. However, communication. Discussions may focus on things you
knowledge. Skills Exercises cultural differences can often make collaboration a challenge. and others may not be doing or need to do better. Don’t
at the end of each chap- take the constructive feedback as personal criticism.
Steps in Practicing the Skill
Focus on the topic being discussed, not on the person
ter are designed to help • Look for common points of interest. The best way to start delivering the message. Recognize that you cannot always
achieve that goal. Some working together collaboratively is to seek commonalities be right!
that exist among the parties. Common points of interest
of these exercises include enable communications to be more effective.
developing your skills at Practicing the Skill
• Listen to others. Collaboration is a team effort. Everyone Interview individuals from three nationalities different
creativity, collaboration, has valid points to offer, and each individual should have
than your own about the challenges of collaborating with
an opportunity to express their ideas.
building trust, interview- individuals from different cultures. What challenges do
ing, motivating others, and • Check for understanding. Make sure you understand what different cultures create when people are asked to collabo-
the other person is saying. Use feedback when necessary. rate? How do they recommend dealing with these challenges?
acquiring power. • Accept diversity. Not everything in a collaborative effort What advice do they have for improving your ability to
will “go your way.” Be willing to accept different ideas and collaborate at work with people from different cultures?
different ways of doing things. Be open to these ideas Do they think being bilingual and traveling to different
and the creativity that surrounds them. countries will improve your ability to collaborate?
xxviii Preface
Ethics Dilemmas ETHICS DILEMMA 4-8. Do you think the use of technology in sports is
based on the desire to gain an advantage or the fear
of competing at a disadvantage?33 Is this an ethical
Each chapter presents In many ways, technology has made all of us more
concern for the use of technology?
productive; however, ethical issues do arise in how and
students with an ethical when technology is used. Take competitive amateur 4-9. What if your school (or country) were competing for
dilemma and encourages and professional sports as an example. All kinds of a championship and couldn’t afford to outfit athletes
in such equipment, and it affected their ability to
them to practice their technologically advanced sports equipment (swimsuits,
compete? Would that make a difference?
golf clubs, ski suits, etc.) have been developed that can
skills in ethical decision sometimes give competitors/players an edge over their 4-10. Given the degree of complexity and change
making and critical deci- opponents. Access to technology is expensive, meaning technology has brought to amateur and professional
sion making. technology use in sports is not equally available to sports, what can regulators (i.e., management) do to
everyone.32 gain some control over their environment?
Team Exercises
Work in today’s organi-
WORKING TOGETHER Team Exercise zations is increasingly
being done in groups
Almost a third of employees who leave their companies Compare your lists for common factors. Now choose one and teams. And being
within the first 90 days say they didn’t fit into the of the group members’ lists and, as a group, discuss: What
company’s culture.34 This suggests that learning about could you do when visiting a company for an interview to a “team player” has
a company’s culture before you accept a job could save find out whether it has the characteristics on the list? What become an important
you a considerable amount of grief. To increase the questions could be asked during the interview to find out
chances that you’ll fit with the culture of the company if the company has a strong or weak culture? What clues
quality in the hiring pro-
you next work for, form groups of three or four and share could be looked for when walking around the company to cess. To help students
the characteristics of an organizational culture each understand what the culture is like? Be ready to share your build their collaboration
group member wants (and doesn’t want) in an employer. analysis with the class.
skills, we have included
team exercises at the end
of each chapter.
MY TURN TO BE A MANAGER
• Find current examples in any popular business Coca-Cola, Disney, Exxon, and Meta made changes in
periodical of both the omnipotent and symbolic views response to investors’ or special interest groups’ demands?
“My Turn to Be of management. Write a paper describing what you Give some examples and indicate whether you agree or
a Manager” found and how your examples represent these views of
management.
disagree with the changes. Was there any evidence of
greenwashing at the company(ies) you researched?
Exercises • Consider a business that you frequent (for example, a • If you belong to a student organization, evaluate its
Additional opportuni- restaurant or coffee shop) and review the six aspects of culture by answering the following: How would you
the external environment discussed in the text. Create describe the culture? How do new members learn the
ties for students to apply a list of factors in the external environment that could culture? How is the culture maintained? If you don’t
management concepts affect the management of the business you selected. belong to a student organization, talk to another student
introduced in each chap- • Choose an organization you are familiar with or would who does and evaluate it using the same questions.
Supplements available
to instructors at www.
pearson.com Features of the Supplement
Instructor’s Manual • Chapter-by-chapter summaries
authored by Nathan • Teaching notes
Hartman from Illinois • Answers for End-of-Chapter activities
State University
Acknowledgments
Writing and publishing is a team effort. Although there are only three names on the
cover, there are dozens of people who helped to create the text you have before you.
In addition to your three authors, this edition was greatly aided by Dr. Nathan
Hartman, Associate Professor at Illinois State University. He was instrumental in
providing research suggestions and examples as well as developing the end-of-chapter
materials.
Our team at Pearson continues to provide your authors with amazing support and
help in turning our files into a finished text. We want to specifically thank Simon
Jacobs, Toni Ackley, Samantha Lewis, Shweta Jain, and Ashley DePace. We also want
to thank our project manager, Allison Campbell, and the entire team at Integra. We
would be remiss not to also acknowledge and thank the phenomenal sales and mar-
keting people at Pearson who have been supporting the Robbins brand around the
globe for more than 45 years.
Finally, we want to thank our reviewers—past and present—for the insights they
have provided us. We are grateful to the following reviewers, as well as those who have
chosen to remain anonymous.
Stephen P. Robbins,
Mary Coulter,
Lori K. Long
About the Authors
MARY COULTER received her Ph.D. from the University of Arkansas. She held
different jobs including high school teacher, legal assistant, and city government
program planner before completing her graduate work. She has taught at Drury
University, the University of Arkansas, Trinity University, and Missouri State University.
She is currently professor emeritus of management at Missouri State University.
In addition to Management, Dr. Coulter has published other books with Pearson
including Fundamentals of Management (with Stephen P. Robbins), Strategic
Management in Action, and Entrepreneurship in Action.
When she’s not busy writing, Dr. Coulter enjoys puttering around in her flower
gardens, trying new recipes, reading all different types of books, and enjoying
many different activities with husband Ron, daughter Sarah and her husband,
James, and son-in-law Matt, and most especially with her two grandkids,
Brooklynn and Blake, who are the delights of her life!
xxxi
xxxii About the Authors
LORI K. LONG received her Ph.D. from Kent State University. As the Burton
D. Morgan Endowed Chair in Entrepreneurship at Baldwin Wallace University,
Dr. Long works across her campus to promote entrepreneurial thinking in
all disciplines and teaches courses in management and entrepreneurship.
Long’s research interests include developing entrepreneurs, online learning,
organizational culture, and effective work/life management strategies. Her
work has been published in Higher Education Skills and Work-Based Learning,
Journal of Human Resources Education, Journal of Workplace Learning,
International Journal of E-learning, Equal Opportunities International, and Journal
of Management Development, as well as several other journals, books, and
conference proceedings.
Dr. Long also consults with businesses on people management, developing
organizational culture, and building innovation ecosystems. When not working
or writing, Dr. Long can be found enjoying the outdoors and traveling with her
husband David.
Part 1 Introduction to Management
Learning Objectives
1.1 Describe who managers are and where they 1.4 Describe the factors that are reshaping and
work. redefining the manager’s job.
1.2 Explain why managers are important to 1.5 Identify career options in management and
organizations. skills that lead to career success.
1.3 List the functions and roles of managers. 1.6 Explain the value of studying management.
Management Myth: Only those who want to be a manager need to take a management course.
Management Reality: Anyone planning to enter the workforce benefits from understanding how
management practices work.
Who Is a Manager?
It used to be fairly simple to define who managers were: They were the organizational
members who told others what to do and how to do it. It was easy to differentiate
managers from nonmanagerial employees. Now, it isn’t quite that simple. In many orga-
nizations, the changing nature of work has blurred the distinction between manag-
ers and nonmanagerial employees. Many traditional nonmanagerial jobs now include
managerial activities, and many organizations no longer have formal managers. For
example, Mercedes-Benz.io, which is an information technology (IT) subsidiary of
holacracy Mercedes-Benz, has established a holacracy organizational structure that does away
An organizational structure that aims to with traditional management roles.2 The holacracy structure aims to distribute deci-
distribute decision making throughout
sion making throughout the organization by eliminating bosses and empowering
the organization by requiring teams or
workgroups to manage themselves, teams or workgroups to manage themselves (see Exhibit 1-1).3 Workers have multiple
rather than centralizing decision making roles that might change depending on the assignment or project, with different people
in a traditional hierarchy taking the lead at different times; thus, everyone performs some management duties.
So, how do we define who managers are? A manager is someone who coordinates
manager
and oversees the work of other people so organizational goals can be accomplished.
Someone who coordinates and
oversees the work of other people A manager’s job is not about personal achievement—it’s about helping others do their
so organizational goals can be work. That may mean coordinating the work of a departmental group, or it might
accomplished mean supervising a single person. It could involve coordinating the work activities of a
team with people from different departments or even people outside the organization
such as temporary employees or individuals who work for the organization’s suppliers.
Keep in mind that managers may also have work duties not related to coordinating and
overseeing others’ work. For example, an insurance claims supervisor might process
claims in addition to coordinating the work activities of other claims clerks.
How can managers be classified in organizations? In traditionally structured orga-
nizations (often pictured as a pyramid because more employees are at lower organi-
first-line (frontline) managers
Managers at the lowest level of zational levels than at upper organizational levels), managers can be classified as
management who manage the work first-line, middle, or top (see Exhibit 1-2). At the lowest level of management, first-line
of nonmanagerial employees (or frontline) managers manage the work of nonmanagerial employees who typically
are involved with producing the organization’s products or servicing the organization’s
middle managers
customers. These managers typically have titles such as team leader, supervisor, shift
Managers between first-line managers
and the top level of the organization manager, district manager, department head, or office administrator. Middle managers
are those between first-line managers and the top level of the organization. They may
top managers have titles such as regional manager, store manager, or division manager. Middle man-
Managers at or near the upper levels agers are mainly responsible for turning the organization’s strategy into action. At the
of the organizational structure who are
upper levels of the organization are the top managers, who are responsible for mak-
responsible for making organization-
wide decisions and establishing the ing organization-wide decisions and establishing the strategy and goals that affect the
strategy and goals that affect the entire entire organization. These individuals typically have titles such as executive vice presi-
organization dent, president, managing director, chief operating officer, or chief executive officer.
Exhibit 1-1
Organization
Holacracy Structure
Roles
Teams
Chapterr1 Managers and You in the Workplace 3
Exhibit 1-2
Top Levels of Management
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
Exhibit 1-3
Distinct Deliberate Characteristics of Organizations
Purpose Structure
People
4 Part 1 Introduction to Management
What Is Management?
management Management involves coordinating and overseeing the work activities of others so
Coordinating and overseeing the work their activities are completed efficiently and effectively. We already know that coor-
activities of others so their activities are
dinating and overseeing the work of others is what distinguishes a managerial posi-
completed efficiently and effectively
tion from a nonmanagerial one. However, this doesn’t mean that managers or their
employees can do what they want anytime, anywhere, or in any way. Instead, manage-
ment involves ensuring that work activities are completed efficiently and effectively
by the people responsible for doing them, or at least that’s what managers should be
doing.
efficiency Efficiency refers to getting the most output from the least amount of inputs
Getting the most output from the least or resources. Managers deal with scarce resources—including people, money, and
amount of inputs or resources equipment—and want to use those resources efficiently. Efficiency is often referred to
as “doing things right,” that is, not wasting resources. For example, Hilton Hotels uses
a centralized reservation and customer service center to simplify operations and lower
costs. Hilton also provides a centralized supply chain management solution that pro-
vides all of its hotel locations with the best prices, fastest delivery, and highest qual-
ity of inventory and supplies. These efficient, centralized management operations have
helped sustain Hilton for more than 100 years, making it a leader in the hotel industry.5
effectiveness
It’s not enough, however, just to be efficient. Management is also concerned with
Doing those work activities that will result employee effectiveness. Effectiveness is often described as “doing the right things,”
in achieving goals that is, doing those work activities that will result in achieving goals. Hilton’s focus
Chapterr1 Managers and You in the Workplace 5
on the customer experience is a key reason the hotel has had sustained success.6 The
company builds customer loyalty through its Hilton Honors program that rewards
customers for frequent stays and also improves the customer experience by recording
customer preferences and making them available to the management at any property
where a guest stays. The managers at Hilton know to focus on the right thing—the
customer—in order to ensure loyalty and success, because a hotel depends on custom-
ers choosing to stay at each location.
Whereas efficiency is concerned with the means of getting things done, effective-
ness is concerned with the ends, or attainment of organizational goals (see Exhibit 1-4).
In successful organizations, high efficiency and high effectiveness typically go hand
in hand.
Exhibit 1-6
R PERSONAL ROL
TE ES Mintzberg’s Managerial Roles
IN Source: Based on H. Mintzberg, The Nature
Leader
of Managerial Work (New York: Prentice
Hall, 1983).
Figurehead Liaison
ROLES
Entrepreneur Monitor
Mintzberg’s
DECISIO
Managerial
Disturbance Roles
NA L
Handler
Disseminator
IO
NA
Resource
AT
Allocator
L
RM
RO
Negotiator Spokesperson
LE
O
S F
IN
A number of follow-up studies have tested the validity of Mintzberg’s role catego- interpersonal roles
ries, and the evidence generally supports the idea that managers—regardless of the Managerial roles that involve people and
other duties that are ceremonial and
type of organization or level in the organization—perform similar roles.10 However, symbolic in nature
the emphasis that managers give to the various roles seems to change with organiza-
tional level.11 At higher levels of the organization, the roles of disseminator, figure- informational roles
head, negotiator, liaison, and spokesperson are more important, whereas the leader Managerial roles that involve collecting,
receiving, and disseminating information
role (as Mintzberg defined it) is more important for lower-level managers than it is for
either middle or top-level managers. decisional roles
So which approach is better, managerial functions or Mintzberg’s propositions? Managerial roles that revolve around
Although each does a good job of depicting what managers do, the functions approach making choices
still seems to be the generally accepted way of describing the manager’s job. “The
classical functions provide clear and discrete methods of classifying the thousands of
activities managers carry out and the techniques they use in terms of the functions
they perform for the achievement of goals.”12 Still, managerial roles provide insights
into what managers do while planning, leading, organizing, and controlling.
Focus on Technology
Monitoring customer service calls is just one example of how technology is transform-
digital transformation ing the practice of management. Many organizations are engaging in strategic digital
The process of rethinking how to use transformation by rethinking how they use technology, people, and processes to accom-
technology, people, and processes to
plish the work of the organization. For example, in the practice of management, new
accomplish the work of the organization
technology will likely replace many tasks previously done by managers such as assigning
artificial intelligence (AI) work and encouraging productivity. In fact, some organizations are using technology
Hardware or software systems that learn such as artificial intelligence to provide employees feedback on their work. Artificial
to make decisions and carry out actions
intelligence (AI) refers to hardware or software systems that learn to make decisions
on behalf of the people that operate the
systems and carry out actions on behalf of the people that operate the systems. Essentially, AI is
a computer making decisions that normally involve human intelligence.16
gig economy Technology has also impacted companies’ use of temporary or contract work-
The labor market created by workers
ers. Contract workers are not company employees; rather, they work for a company
doing freelance work
on an as-needed basis. The evolution of apps such as Door Dash and Uber have
transformed the contract labor market, allowing workers to
generate income via a side hustle or create a full-time job
by bringing together different gig work arrangements. This
evolution is often referred to as the gig economy because
it describes a new labor market of workers doing freelance-
type work. This development is also creating new challenges
for managers. From scheduling and meeting work needs to
ensuring worker safety, managing gig workers will continue
to impact the practice of management.17
Learning from
FA I L U R E Successful Managers Learn from Their Failures
Microsoft cofounder Bill Gates says, “It’s fine to celebrate While classmates in high school, Bill Gates and Paul
success, but it is more important to heed the lessons of Allen started Traf-O-Data. They designed a computerized
failure.” And Jeff Bezos, founder and CEO of Amazon, microprocessor that would analyze traffic data and create
actually prides himself on his failures. He says, “I’ve made reports for the state of Washington highway department’s
billions of dollars of failures.” Bezos embraces risk, and traffic engineers. The goal was to optimize traffic and end
Amazon has created a culture that has an extreme toler- road congestion. Unfortunately, their first demo didn’t
ance for failure. For instance, Amazon Destinations tried to work, and the idea later became obsolete when the state of
sell hotel rooms and bombed. So did Amazon’s effort to cre- Washington offered to tabulate the tapes for cities for free.
ate a mobile wallet, offer songs, and allow customers to Although the concept failed, it provided Gates and Allen
test out apps before buying. One of its biggest failures was with the software skills that would lead to their creating a
Fire Phone, which lost $170 million, but led to Echo—its new start-up called “Micro-Soft.”
popular voice-activated speaker. And although you probably have a profile on LinkedIn,
Behind thousands of success stories are paths strewn founder Reid Hoffman’s first attempt at building an online
with setbacks and often failures. Remember: No one goes networking site failed. SocialNet failed because it was unfo-
undefeated all the time. But out of those setbacks, for cused in its purpose, attempting to help people connect
those individuals and organizations with persistence and for a variety of purposes from finding a roommate to find-
the willingness to evaluate, change, and adapt—success ing true love. However, Hoffman credits his success with
frequently prevails. And what applies to managers and com- LinkedIn as resulting from this failure, noting that “one of
panies also applies to you. You’re going to make mistakes, the things I learned from that whole experience, was that
have setbacks, and sometimes fail in your endeavors. You you should focus on one domain that really matters to peo-
need to learn from these and move on. For instance: ple and just do that really well.”23
J. K. Rowling was a single mother, financially supported We think there’s a lot for you to learn through reading
by governmental assistance, who had her manuscripts about others’ failures, so throughout this text we include
rejected by more than a dozen publishers before she found examples that illustrate major failures, what individuals
one to publish Harry Potter. Ms. Rowling, now a billionaire, and organizations learned, and the changes they made in
is one of the richest women in Britain. response.24
10 Part 1 Introduction to Management
Lower-Level
Conceptual Interpersonal Technical
Managers
What types of skills do managers need? Robert L. Katz proposed that managers
need three critical skills in managing: technical, human, and conceptual.30 (Exhibit 1-8
shows the relationships of these skills to managerial levels.) Technical skills are the technical skills
job-specific knowledge and techniques needed to proficiently perform work tasks. Job-specific knowledge and techniques
needed to proficiently perform work
These skills tend to be more important for first-line managers because they typically
tasks
manage employees who use tools and techniques to produce the organization’s prod-
ucts or service the organization’s customers. Often, employees with excellent technical
skills get promoted to first-line manager. Managers also need interpersonal skills, interpersonal skills
which involve the ability to work well with other people both individually and in a The ability to work well with other people
individually and in a group
group. Because all managers deal with people, these skills are equally important to
all levels of management. Managers with good human skills get the best out of their
people. They know how to communicate, motivate, lead, and inspire enthusiasm and
trust. Finally, conceptual skills are the skills managers use to think and to concep- conceptual skills
tualize about abstract and complex situations. Using these skills, managers see the The ability to think and to conceptualize
organization as a whole, understand the relationships among various subunits, and about abstract and complex situations
visualize how the organization fits into its broader environment. Managers then can
effectively direct employees’ work.
Within these three core skill areas, managers may require specific skills depend-
ing on the company, their area of responsibility, or current workplace challenges.
For example, managing workers in today’s complex world that includes remote
work and the need to pay attention to workers’ mental health requires managers to
develop their skills in empathy or the ability to understand others’ emotions and
respond with compassion. Tricia Alcamo, the Chief People Officer at FanDuel, a
gaming, fantasy sports, and sports betting company, knows that empathy is key to
leadership success, noting that workers have much more going on than you see on
the surface. When she joined FanDuel, she implemented a new leadership develop-
ment program to help managers across the organization develop emerging skills
such as empathy.31
Exhibit 1-9
Universal Need for All Sizes of Organizations
Management Small Large
Bottom Top
done in the same way. What a supervisor in an applications testing group at Snap Inc.
(developer of Snapchat) does versus what the CEO of Snap Inc. does is a matter of
degree and emphasis, not function. Because both are managers, both will plan, orga-
nize, lead, and control. How much and how they do so will differ.
Management is universally needed in all organizations. And organizations that are
well managed—and we’ll share many examples of these throughout the text—develop
a loyal customer base, grow, and prosper, even during challenging times. Those that
are poorly managed find themselves losing customers and revenues. By studying man-
agement, you’ll be able to recognize poor management and work to get it corrected.
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