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MANAGEMENT
Leading & Collaborating in a Competitive World
14e
Wang An Qi/Shutterstock
Thomas S. Bateman
McIntire School of Commerce
University of Virginia
Robert Konopaske
McCoy College of Business
Texas State University
First, the person at the top may or may not provide effec- 2. Social Entrepreneurship boxes offer examples illustrat-
tive leadership—in fact, truly good leadership is far too rare. ing chapter themes from outside the private sector. Many
Second, organizations need leaders at all levels, in every students are deeply interested in social entrepreneurs and
team and work unit. This includes you, beginning early in enterprises, inherently and for future employment pos-
your career, and this is why leadership is a vital theme in sibilities. Examples include: Ashoka’s Bill Drayton, “The
this book. Third, leaders should be capable of being deci- Pioneer of Social Entrepreneurship” (Chapter 1); “Is Social
sive and giving commands, but relying too much on this tra- Enterprise Becoming Big Business?” (Chapter 10); and
ditional approach isn’t enough. Great leadership is far more “Providing Clean Water via ‘Water ATMs’” (Chapter 17).
inspirational than that, and helps people to both think dif- 3. Inclusiveness Works are new boxes that discuss chap-
ferently and to work differently—including working collab- ter themes from diverse and inclusive perspectives, based
oratively toward outstanding results. on data not stereotypes, with a goal of strengthening what
True leadership—from your boss as well as from you— too often are difficult workplace relationships. Examples
inspires collaboration, which in turn generates results that include: “Women in Leadership Roles: A Strategy for
are good for you, your employer, and your customers. Success” (Chapter 2); and “Reaping the Benefits through
Empathy and Consideration” (Chapter 3).
As Always, Currency and 4. The Digital World feature offers custom examples
of how companies and other users employ digital/social
Variety in the 14th Edition media in ways that supplement and complement ideas in
It goes without saying that this textbook, in its 14th edition, each chapter. Students of course will relate to the social
remains on the cutting edge of topical coverage, updated media, but also learn of interesting examples and practices
throughout with both current business examples and recent that most did not know before. Instructors will learn a lot
management research. We continue to emphasize real results, as well!
diversity and inclusiveness, and sustainability—themes on That’s the big picture. We believe the management sto-
which we were early and remain current leaders. ries in the boxed features light up the discussion and con-
While still organizing the chapters around the clas- nect the major themes of the new edition with the many
sic management functions, we modernize those functions real worlds students will enter soon.
with a far more dynamic orientation. Looking constantly at Up next is just a sampling of specific changes, updates,
change and the future, we describe the management func- and new highlights in the 14th edition—enough to convey
tions as Delivering Strategic Value (for Planning), Building the wide variety of people, organizations, issues, and man-
a Dynamic Organization (for Organizing), Mobilizing agement challenges represented throughout the text.
People (for Leading), and last but hardly least, Learning
and Changing (for Controlling). Chapter 1
Special Features • New Inclusiveness Works feature about generational dif-
ferences in the workplace.
We believe that the 14th edition provides our strongest-ever
boxed features, representing three recurring themes. In addi- • Updated Management in Action about Mark Zuckerberg
tion to a concluding case, every chapter has a three-part of Facebook.
unfolding story, plus stand-alone inserts offering contempo- • New Digital World: “Chatbots: Good for Business?”
rary management takes on social entrepreneurship, inclusive- • Revised Social Entrepreneurship discussing Bill Drayton
ness practices, and the digital world. of Ashoka.
1. Management in Action, a hallmark feature, presents
• New example of Uber’s new CEO trying to make the
unfolding current three-part stories about today’s business
company profitable again.
leaders and companies. The first part, “Manager’s Brief,”
encourages students at the start of each chapter to begin • Updated list of top five firms in Fortune’s 2018 Global
thinking about one or more chapter themes in the context 500 list.
of the current business scene. For example, Chapter 1 intro- • New example of PepsiCo offering KeVita probiotic non-
duces Facebook’s Mark Zuckerberg and some of the chal- soda and Bubly Sparkling Water.
lenges he and his company face. The second Management • New example of Rocket Mortgage propelling Quicken
in Action element, “Progress Report,” appears about half- Loans to the top of the mortgage provider market.
way through each chapter and adds more chapter themes
to the narrative. At each stage, we offer questions for class • New example in which Patagonia’s Work Wear pro-
discussion, group work, or simply reflection. Closing out gram makes over 50,000 repairs to customers’ used
each unfolding story is “Onward,” at the end of each chap- clothing.
ter. This element also includes questions for further consid- • New example of using Gallup’s CliftonStrengths assess-
eration and perhaps additional research. ment to identify core strengths.
viii Preface
Preface ix
x Preface
• New example discussing how advances in automated deci- • New example of companies like Adobe, Gap, and IBM
sion making could dramatically change managers’ roles. shifting to frequent, informal employee performance
• New example of transformational leaders, including check-ins.
Mary Barra (CEO of General Motors), Reed Hastings • New example of the CEO of T-Mobile posting about
(CEO of Netflix), Mark Bertolini (CEO of Aetna), and company products to more than 5 million followers on
Shantanu Narayen (CEO of Adobe). his Twitter account.
• New example of companies like Unisys, Sprint, and
Chapter 13 Hewlett-Packard training employees to use social media
• New Inclusiveness Works: “Improving D&I Initiatives productively.
with Intrinsic Motivation.”
• New example of Vynamic implementing a policy pre-
• Updated Management in Action about SAS being a venting work-related communication among employees
great place to work. after hours during the week and all weekend long.
• New Digital World about using technology to motivate
employees. Chapter 16
• New example of Notejoy, an organizational collabora- • New Inclusiveness Works: “Making a Measurable
tion platform, helping its employees set specific and Impact with D&I Initiatives.”
measurable goals. • New Management in Action: “Tracking Employees to
• New example of how Ryan LLC, a tax firm, rewards its Control Health Care Costs.”
employees with four-week paid sabbaticals and subsidies • Revised Social Entrepreneurship discussing better ways
for health club memberships. to measure social impact.
• New example of Blue Cross and Blue Shield of North • New Digital World feature about technology enabling
Carolina hiring college graduates for its two-year Rotational timely performance reviews.
Development Program. • New example of Teco Energy assigning project teams to
• New example of how psychological contracts are changing. prevent problems.
• New example discussing how data-driven visual dash-
Chapter 14 boards allow managers to monitor organizational perfor-
• New Inclusiveness Works: “Empathy in Teams Helps mance indicators in real time.
Cohesion and Inclusiveness.” • New example of Chipotle rolling out Zenput, a mobile
• Revised Management in Action feature discussing team- food safety protocol platform, to prevent future food
work at Whole Foods Market. safety issues.
• New Concluding Case: “Un-Teamwork at Quadra.”
Chapter 17
• Updated Social Entrepreneurship box about social entre-
• New Inclusiveness Works discussing how technology
preneurs using co-working spaces.
can help remove unconscious bias.
• New example of Nestlé’s InGenius program encourag-
• Revised Management in Action about Elon Musk’s ups
ing employees and external partners to collaborate to
and downs as he pursues technology’s possibilities and
develop new business ideas.
challenges.
• New example of virtual teams functioning effectively.
• New Concluding Case: “Innovating at Worldwide Games.”
• New example in which Spotify creates “squads” of agile,
• Updated Digital World about BYOD and BYOA work
self-organized teams to create new products.
policies.
• New example of ways to resolve conflict among B2B • New example of product innovations like foldable
commerce partners. phones, rollup TVs, and more nature fluid interactions
with voice-activated digital assistants.
Chapter 15
• New example discussing how innovative food producers
• New Inclusiveness Works in which organizations use like Impossible Foods and Beyond Meat are introducing
storytelling to become more inclusive. new “meatless meats” to the market.
• Updated Management in Action: “Communicating, • New example describing blockchain’s potential game-
SoundCloud Style.” changing impact on the integrity of everything from
• New Digital World: “Gmail Predicts What You Want to online transactions to e-voting.
Say.” • New example of Neiman Marcus installing interactive
• Revised Concluding Case regarding communicating at touch screens in its fitting rooms, allowing customers to
Best Trust Bank. adjust lighting and request clothing sizes and colors.
Preface xi
xii Preface
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CHAPTER-UNFOLDING CASES
Each chapter begins with a “Management in Action: Manager’s Brief” section that describes an actual organizational
situation, leader, or company. The “Manager’s Brief” is referred to again within the chapter in the “Progress Report”
section, showing the student how the chapter material relates back to the company, situation, or leader highlighted in the
chapter opener. At the end of the chapter, the “Onward” section ties up loose ends and brings the material full circle for
the student. Answers to Management in Action section questions can be found in the Instructor’s Manual.
SOCIAL ENTREPRENEURSHIP
Social Entrepreneurship boxes have been updated in each chapter to familiarize students with this fast-growing sector.
Answers to Social Entrepreneurship questions are included in the Instructor’s Manual.
INCLUSIVENESS WORKS
In each chapter, an Inclusiveness Works box has been added to highlight some of the diversity and inclusion challenges
faced by managers and employees today.
CONCLUDING CASES
Each chapter ends with a case based on disguised but real companies and people that reinforces key chapter elements and
themes.
SUPPLEMENTARY CASES
At the end of each part, an additional case is provided for professors who want students to delve further into part topics.
Outstanding Pedagogy
Management: Leading & Collaborating in a Competitive World is pedagogically stimulating and is intended to maximize
student learning. With this in mind, we used a wide array of pedagogical features—some tried and true, others new and novel:
END-OF-CHAPTER ELEMENTS
• Key terms are page-referenced to the text and are part of the vocabulary-building emphasis. These terms are defined
again in the glossary at the end of the book.
• Retaining What You Learned provides clear, concise responses to the learning objectives, giving students a quick
reference for reviewing the important concepts in the chapter.
• Discussion Questions, which follow, are thought-provoking questions on concepts covered in the chapter and ask for
opinions on controversial issues.
• Experiential Exercises in each chapter bring key concepts to life so students can experience them firsthand.
xiv
Assurance of Learning
This 14th edition contains revised learning objectives, and learning objectives are called out within the chapter where the
content begins. The Retaining What You Learned for each chapter ties the learning objectives back together as well. And,
finally, our test bank provides tagging for the learning objective that the question covers, so instructors will be able to test
material covering all learning objectives, thus ensuring that students have mastered the important topics.
Comprehensive Supplements
INSTRUCTOR’S MANUAL
The Instructor’s Manual was revised and updated to include thorough coverage of each chapter as well as time-saving
features such as an outline, key student questions, class prep work assignments, guidance for using the unfolding cases,
video supplements, and, finally, PowerPoint slides.
TEST BANK
The Test Bank includes more than 100 questions per chapter in a variety of formats. It has been revised for accuracy and
expanded to include a greater variety of comprehension and application (scenario-based) questions as well as tagged with
Bloom’s Taxonomy levels and AACSB requirements.
xv
FOR INSTRUCTORS
FOR STUDENTS
No surprises.
The Connect Calendar and Reports tools keep you on track with the
work you need to get done and your assignment scores. Life gets busy;
Connect tools help you keep learning through it all.
Brief Contents
xix
Contents
xxi
xxii Contents
MANAGEMENT IN ACTION MANAGER’S BRIEF 139 Skills of the Global Manager 186
It’s a Big Issue 140 Understanding Cultural Issues 187
It’s a Personal Issue 141 INCLUSIVENESS WORKS 188
Ethics 142
THE DIGITAL WORLD 190
Ethical Systems 142
Ethical Issues in International Management 190
Business Ethics 144
The Ethics Environment 145 MANAGEMENT IN ACTION ONWARD 191
Key Terms 191
THE DIGITAL WORLD 147
Ethical Decision Making 149 Retaining What You Learned 192
Courage 150 Discussion Questions 193
Experiential Exercises 193
MANAGEMENT IN ACTION PROGRESS REPORT 151
CONCLUDING CASE 194
INCLUSIVENESS WORKS 152
Corporate Social Responsibility 152
Contrasting Views 154 C HAP TER 7
Reconciliation 155
The Natural Environment and Sustainability 155 Entrepreneurship 198
SOCIAL ENTREPRENEURSHIP 156 MANAGEMENT IN ACTION MANAGER’S BRIEF 199
A Risk Society 157 Entrepreneurship 201
Sustainable Growth 157 Why Become an Entrepreneur? 202
Environmental Agendas for the Future 158 What Does It Take to Succeed? 203
MANAGEMENT IN ACTION ONWARD 159 What Business Should You Start? 203
Key Terms 160 SOCIAL ENTREPRENEURSHIP 207
Retaining What You Learned 160 What Does It Take, Personally? 208
Discussion Questions 161 Success and Failure 210
Experiential Exercises 162 MANAGEMENT IN ACTION PROGRESS REPORT 210
CONCLUDING CASE 163 Common Management Challenges 211
THE DIGITAL WORLD 212
CHAPTER 6 Increasing Your Chances of Success 214
Contents xxiii
C H AP T E R 8 C HAP TER 9
xxiv Contents
Contents xxv
Exhibition Case Showing Four Well-Known Iron Alloys with Their Metalloids
7. No one knows just when, with increase of carbon, steel ceases to be steel and becomes
white cast iron. There is no definite dividing line either in chemical or physical properties.
The changes are extremely gradual throughout the scale. Aided by the microscope, modern
physical chemistry has disclosed the fact that alloys of iron with carbon “freeze” from molten
to solid condition according to two different laws. The change from one to the other occurs
somewhere between 1.7 per cent and 2.2 per cent of carbon as is described in Chapter XXII.
This is our only basis for calling alloys with less than 2 per cent of carbon, steels, and those
with greater amounts, cast irons.
8. For our immediate purposes the other “metalloids” or constituents are of secondary
importance and will not be taken up now. From this it must not be understood that they can
be slighted by the metallurgist and furnace man in his work. They cannot. Every one of them
is of importance and must be accounted for in the final product or trouble results.
Volumetric Analysis of the Iron Alloys
There is a way in which we may visually get a very intimate idea of the relative
composition of these alloys.
The cabinet of which a photograph is given is partitioned into four sections. Each one of
these contains a bar and six specimen jars. As you may or may not be able to read from the
labels, the bars, all of exactly the same size, are soft cast iron, semi-steel (a stronger cast
iron), annealed malleable iron and cast steel. The six jars above each bar contain the exact
amounts of the various constituents other than iron which are in the bar beneath.
As none of the constituents except manganese are as heavy as iron, their volumes per unit
of weight are correspondingly greater. Putting it into approximate figures we have the
percentages by weight and by volume shown in Table C.
This means, of course, that of the cast iron plates of your cook stove or steam or water
radiators fully one-quarter (26 per cent by volume) is not iron at all but brittle substances
of little or no strength. These elements, silicon, sulphur, phosphorus, and carbon, are
commonly called “metalloids.” While the first three named are not in “free” form in the alloy
and therefore allow of some doubt as to just the space they require, we have good reason to
suppose that the figures given are not far from correct.
With such a volume of weakening constituents and particularly with the graphite flakes
cutting through and separating the iron grains as the photomicrographs show, can one
wonder that cast iron is fragile—more so than steel or wrought iron?
To sum up, naming only the most familiar alloys and the two or three qualifying features
of each which stand forth with particular boldness, we have:
Pig Iron—Very High Carbon. Brittle.
Gray Cast Iron—High Carbon. Brittle.
Malleable Cast Iron—High Carbon. Made Malleable by Annealing.
Wrought Iron—Slag. Little or no Carbon. Very Malleable without Annealing.
Mild Steel—Very Low Carbon. No Slag. Very Malleable without Annealing.
Carbon Tool Steel—Medium Carbon. No Slag. Of Medium Malleability.
So steel which is not called “iron” at all is a very pure metal in comparison with gray and
malleable cast iron and usually has a larger percentage of the chemical element, iron from
which all are derived, than has the well-known wrought iron itself.
CHAPTER VI
WROUGHT IRON
Soon the metal begins to “come to nature” and little lumps of pure
iron here and there through the bath stiffen up into little pasty balls.
Some may be seen sticking out through the cinder covering of the
bath and others must be torn loose from the bottom with the rabbler.
This “balling” period lasts from fifteen to twenty minutes, during
which time all of the iron has “come to nature.”
The
puddler
quickly
separate
s into
two or
three
white-
hot balls
the 400 The Coal Pile and Fire
pounds Box of a Reverberatory
Turning the Pigs to or so of Furnace
Insure Even Melting spongy
iron.
These balls, full of and dripping with
cinder, are seized, one at a time, with long tongs, removed from the
furnace and rushed to the rotary squeezer through which they are
twisted and turned, ever becoming longer and smaller in diameter
until they emerge from the other and narrower side much compacted
and with but little of the cinder which they originally carried.
Without being given time to cool, the blooms are seized and shoved
into the “muck rolls,” whence after a few passes they emerge as long
flat bars, very rough and imperfect in appearance.
After shearing into short lengths, many pieces of this “muck bar,”
as it is called, are made into “box piles” and tied together with wires.
These are charged into the furnace of the finishing mill. After coming
to a white heat the box piles go to the finishing rolls where they are
rolled into bars, rods, plates, or other shapes desired. By repeated
cutting, piling, heating, and rolling, double refined and other high
grades of wrought iron are made, each repiling and rerolling, of
course, producing a more compact and better product.
Wroug
ht iron
has a
“fiber,”
as may
be seen
from two
of the
illustrati
Considerable Cinder ons Puddling the Melted
Overflows During the presente Charge
“Boiling” Stage d. In
“coming
to nature” small particles of iron
crystallize out as they become purer. These measure perhaps ¹⁄₃₂″ or
¹⁄₁₆″ in diameter. As it goes to the squeezer the ball of “sponge” is
made up of such grains of iron loosely welded together with the
interstices filled with cinder. The squeezer, and later the rolls,
elongate the particles of iron into threads, which, welded together,
make the bar.
It is thought by some that films of cinder, too thin to be seen under
the microscope, surround each fiber of iron and that these afford
protection from rusting and give to wrought iron the excellent
welding quality that it possesses.
Steel
has no
fiber and
for this
reason it
cannot
be split
as was
the
On the Way to the wrought Drawing One of the
“Squeezer” iron bar Balls from the Furnace
shown in
the
illustration of page 92.
It will have been noticed that only small amounts of iron can be
refined at one time. This, indeed, has been the unfortunate part of
wrought iron manufacture, for it may readily be seen that production
of any such material in lots as small as a quarter ton results in labor
costs which are almost prohibitive in these days of machine-made
goods. Not only is the output of a furnace small but much skill and
judgment are necessary for the production of a high grade product.
Very sturdy and strong men, too, are required as puddlers, for the
work is heavy and the extremes of heat and cold to which they are
exposed necessitate men of rugged health.
This material in bar iron, engine stay bolts, butt and lap-welded
pipe and certain other products has long held a high place. Though
not as strong as steel, its very excellent welding properties and
comparative freedom from “crystallization” and treacherous
breakage under long continued vibration or sudden jar have fostered
its application in such products as stay bolts, chain-links, cable hooks
and others where failure might have serious consequences. Too, it is
thought by many that pipes, sheets and other articles of wrought iron
resist the corrosive influences of moist
air, soil, etc., particularly well. The
cinder films in which the fibers are
supposed to be encased are given
credit for such protective influence.
Thoug
h the
product
has
always
been a
“Box Piles” Ready for favorite
the Re-Heating Furnace with iron
users,
the Cross-Section of a
industry has suffered during the last “Squeezer”
sixty years by reason of the high cost of
manufacture, which has very largely
restricted the application of wrought iron to certain uses for which
first cost is not a main factor.
The production of wrought iron rails has rapidly dwindled since
the year 1880, when they began generally to be replaced by rails
made from Bessemer steel.
Of recent years, mild steel has
been the great competitor of
wrought iron. With marvelous
energy, skill, and much capital
the manufacturers of Bessemer
and open-hearth steels have
adapted their products very well
to the needs of the iron user,
while the enormous tonnages
turned out in short time by use of
ingenious furnaces and other
The Ball Going Into the devices has resulted in a low cost
“Squeezer” of production.
Had any of the several
mechanical puddling furnaces devised for the manufacture of
wrought iron proved really
successful, things might be more
rosy commercially for this very
excellent material.
According to the 1916
Statistical Report of the
American Iron and Steel
Institute, the recent yearly
production in this country of
wrought iron and steel merchant
bars, plates and sheets, and skelp
for pipe in gross tons has been: Shearing the Muck Bar into
Short Lengths for “Piling”