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FOR INFORMATION:

SAGE Publications, Inc.

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Copyright © 2019 by SAGE Publications, Inc.

All rights reserved. No part of this book may be reproduced or utilized in any form or by
any means, electronic or mechanical, including photocopying, recording, or by any
information storage and retrieval system, without permission in writing from the publisher.
Library of Congress Cataloging-in-Publication Data

Names: Lussier, Robert N., author.

Title: Management fundamentals : concepts, applications, and skill development / Robert N. Lussier, Springfield
College.

Description: 8e [edition]. | Thousand Oaks, Calif. : SAGE, [2019] | Includes bibliographical references and indexes.

Identifiers: LCCN 2017043147 | ISBN 9781506389394 (pbk. : alk. paper)

Subjects: LCSH: Management. | Supervision of employees.

Classification: LCC HD31.2 .L87 2019 | DDC 658—dc23 LC record available at https://lccn.loc.gov/2017043147

8
This book is printed on acid-free paper.

Acquisitions Editor: Maggie Stanley

Editorial Assistant: Alissa Nance

Content Development Editor: Lauren Holmes

Production Editor: Tracy Buyan

Copy Editor: Kim Husband

Typesetter: C&M Digitals (P) Ltd.

Proofreader: Lawrence W. Baker

Indexer: Judy Hunt

Cover Designer: Janet Kiesel

Marketing Manager: Amy Lammers

9
Brief Contents
Preface
Acknowledgments
About the Author
Part I: The Global Management Environment
1. Management and Its History
2. The Environment: Culture, Ethics, and Social Responsibility
3. Managing Diversity in a Global Environment
Part II: Planning
4. Creative Problem Solving and Decision Making
5. Strategic and Operational Planning
6. Managing Change, Innovation, and Entrepreneurship
Part III: Organizing
7. Organizing and Delegating Work
8. Managing Teamwork
9. Human Resources Management
Appendix: Career Management and Networking
Part IV: Leading
10. Organizational Behavior: Power, Politics, Conflict, and Stress
11. Motivating for High Performance
12. Leading With Influence
13. Communication and Information Technology
Part V: Controlling
14. Managing Control Systems, Finances, and People
15. Operations, Quality, and Productivity
Glossary
Notes
Author Index
Company Index
Subject Index

10
Detailed Contents
Preface
Acknowledgments
About the Author
Part I: The Global Management Environment
Chapter 1. Management and Its History
Why Study Management?
Develop Skills You Can Use in Your Personal Life
Develop Skills You Can Use as a Manager or Employee
What Is a Manager’s Responsibility?
Managers and the Organizational Resources They Manage
A Manager Interview
What Does It Take to Be a Successful Manager?
Management Qualities
Management Skills
AACSB Competencies
What Do Managers Do?
Management Functions
Management Roles
The Systems Relationship Among the Management Skills,
Functions, and Roles
Differences Among Managers
The Three Levels of Management
Differences in Management Skills and Functions
Differences in Size and Profits
A Brief History of Management
Classical Theory
Behavioral Theory
Management Science
Integrative Perspective
Comparing Theories
Managing the Old Versus New Workplace
Objectives of the Book
Management Concepts
Application of Management Concepts
Development of Management Skills
Organization of the Book
Trends and Issues in Management
Chapter Summary
Case 1.1: Joe Maddon, Manager of the Chicago Cubs

11
 Case 1.2: Jiffy Lube University
Chapter 2. The Environment: Culture, Ethics, and Social Responsibility
The Environment
The Internal Environment
The External Environment
Organizational Culture
Organizational Culture Artifacts
Organizational Culture Levels, Strength, and Health
Managing and Changing Cultures and the Learning Organization
Business Ethics
Business Ethics and Justifying Unethical Behavior
Factors That Influence Behavior to Be Ethical or Unethical
Methods to Help Ensure Ethical Behavior
Guides to Ethical Behavior
Managing Ethics
Social Responsibility and Sustainability
Social Responsibility to Stakeholders
Levels of Corporate Social Responsibility
Sustainability
Trends and Issues in Management
Chapter Summary
Case 2.1: Whole Foods Market
Case 2.2: Ride ’Em Cowboys: Wells Fargo and the Seattle City Council
Chapter 3. Managing Diversity in a Global Environment
The Global Environment
Classifying Businesses in the Global Village
Ethnocentrism Is Out and “Made in America” Is Blurred
Managing Foreign Trade
Standard of Living and the Effects of Foreign Trade
Workplace Diversity and Inclusion
What Are Diversity and Inclusion?
Are Diversity and Inclusion Really Important?
Types of Diversity and Managing Diversity
Age and Generational Diversity and Management
Gender and Sexual Orientation Diversity and Management
Race and Ethnicity Diversity and Management
Disability and Ability Diversity and Management
Religious Diversity and Management
Other Types of Diversity and Management
Managing Diversity Through Inclusion
Global Diversity
Hofstede National Cultural Diversity

12
 GLOBE
International Assignments
Managing Global Business
Global Management Practices
Managing Different Forms of Global Business
Trends and Issues in Management
Chapter Summary
Case 3.1: Marriott International
Case 3.2: Ford: Bringing It On Back From Mexico
Part II: Planning
Chapter 4. Creative Problem Solving and Decision Making
Problem Solving and Decision Making: An Overview
Problem-Solving and Decision-Making Interrelationships
Decision-Making Styles
The Decision-Making Model
Classify and Define the Problem or Opportunity
Classify the Problem
Select the Appropriate Level of Participation
Define the Problem
Decision-Making Types—-Rational Versus Bounded Rational
Decisions
Set Objectives and Criteria
Generate Creative and Innovative Alternatives
Creativity and Innovation
Using Groups to Generate Creative Alternatives
Decision Trees
Analyze Alternatives and Select the Most Feasible
Quantitative Techniques
Big Data
Cost-Benefit, Pros and Cons, and Intuition
Plan, Implement the Decision, and Control
Trends and Issues in Management
Chapter Summary
Case 4.1: Toyota Motor Corporation
Case 4.2: Was Target Missing the Mark With Fashion Designer
Clothing?
Chapter 5. Strategic and Operational Planning
Strategic and Operational Planning
Planning Dimensions
Strategic Versus Operational Planning and Strategies
The Strategic Planning Process
Developing the Mission and Analyzing the Environment

13
 The Mission
Analyzing the Environment
Competitive Advantage
Setting Objectives
Writing Effective Objectives
Criteria for Objectives
Management by Objectives (MBO)
Corporate-Level Strategies
Grand Strategy
Growth Strategies
Portfolio Analysis
Business-Level Strategies
Adaptive Strategies
Competitive Strategies
Operational-Level Planning
Functional Strategies
Standing Plans Versus Single-Use and Contingency Plans
Time Management
Multitasking
Implementing and Controlling Strategies
Trends and Issues in Management
Chapter Summary
Case 5.1: FedEx Corporation
Case 5.2: The Not-So-Friendly Skies: Air Canada’s Plan of Attack on
U.S. Markets
Chapter 6. Managing Change, Innovation, and Entrepreneurship
Innovation and Change
The Innovation and Change Interrelationship and Risk
Forces for Change
Types of Change
Forms of Change
Managing Innovation
Innovative Organizational Structures and Cultures
Managing Innovation During Incremental and Discontinuous
Change
Managing Change
Stages in the Change Process
Resistance to Change
How to Overcome Resistance to Change
A Model for Identifying and Overcoming Resistance to Change
Organizational Development
Change Models

14
 Organizational Development Interventions
Entrepreneurship
New Venture Entrepreneurs and Intrapreneurs
The Entrepreneurial Process
Trends and Issues in Management
Chapter Summary
Case 6.1: Chobani
Case 6.2: Sir Richard Branson in the Pilot Seat: Flying High With Virgin
Airlines
Part III: Organizing
Chapter 7. Organizing and Delegating Work
Organizational Considerations and Principles
Organizational Considerations
Principles of Organization
Authority
Formal and Informal Authority and Scope and Levels of Authority
Centralized and Decentralized Authority
Line and Staff Authority
Organizational Design
Organization Chart
Traditional Departmentalization
Contemporary Organizational Design
Multiple Departmentalization
Contemporary Organizational Issues and Designs
Job Design
Job Simplification
Job Expansion
Work Teams
Organizing Yourself and Delegating
Setting Priorities
Delegating
Trends and Issues in Management
Chapter Summary
Case 7.1: AT&T
Case 7.2: Zappos: Strategic Reengineering or a Path to Structural
Failure?
Chapter 8. Managing Teamwork
Groups and Teams and Performance
Groups and Teams
The Group Performance Model
Group Structure
Group Types

15
 Group Size
Group Composition
Group Leadership and Objectives
Group Process
Group Roles
Group Norms
Group Cohesiveness
Status Within the Group
Decision Making and Conflict Resolution
Stages of Group Development and Management Styles
Stage 1. Forming—Autocratic Management Style
Stage 2. Storming—Consultative Management Style
Stage 3. Norming—Participative Management Style
Stage 4. Performing—Empowerment Management Style
Stage 5. Termination
Changes in Group Development and Management Style
Developing Groups Into Teams
Training and Team Leadership
Team Rewards and Recognition
Managing Meetings
Planning Meetings
Conducting Meetings
Handling Problem Members
Trends and Issues in Management
Chapter Summary
Case 8.1: Ritz-Carlton Hotels
Case 8.2: Saving Lives Together: Partnering and Teamwork at
Medtronic
Chapter 9. Human Resources Management
The Human Resources Management Process
The Human Resources Department
The Legal Environment
Harassment and Sexual Harassment and Workplace Romance
Human Resources Planning
Strategic Human Resources Planning
Job Analysis
Attracting Employees
Recruiting
The Selection Process
Selection Interviewing
Developing Employees
Orientation Programs, Onboarding, and Newcomer Socialization

16
 Training and Development
Performance Appraisal
Retaining and Separating Employees
Compensation
Health and Safety
Unions and Labor Relations
Separating Employees
Trends and Issues in Management
Chapter Summary
Case 9.1: Boston Consulting Group
Case 9.2: People Operations: Using Data Analytics to Bolster Female
Retention at Google
Chapter 9 Appendix. Career Management and Networking
Career Management
Career Planning and Development
Getting a Job
Networking
The Importance of Networking
The Networking Process
Appendix Summary
Part IV: Leading
Chapter 10. Organizational Behavior: Power, Politics, Conflict, and Stress
Organizational Behavior (OB)
Goals of OB
Thoughts and Self-Esteem
Personality
Personality Development and Careers
Single Traits of Personality
The Big Five Personality Dimensions
The Myers-Briggs Type Indicator (MBTI)
Perception
The Perception and Attribution Processes
Bias in Perception
Perception Congruence
Attitudes
Attitude Formation, Behavior, and Job Satisfaction
How Employee and Managerial Attitudes Affect Employee
Performance
Shaping OB Foundations
Shaping Your OB Foundations
Shaping Your Management OB Foundations
Managing Diverse Employee OB Foundations

17
 Organizational Power and Politics
The Relationship Between Organizational Power and Politics
Power
Using Power
Organizational Politics
Political Behavior
Negotiation, Conflict, and Stress Management
Negotiating
Conflict
Conflict Management Styles
Initiating Conflict Resolution
Responding to and Mediating Conflict Resolution
Stress
Stress Management
Trends and Issues in Management
Chapter Summary
Case 10.1: GlaxoSmithKline
Case 10.2: Changing Times: Has IBM (I’ve Been Moved) Become
TTMJ (They Took My Job)?
Chapter 11. Motivating for High Performance
Motivation and Performance
What Is Motivation, and How Does It Affect Performance?
An Overview of Three Major Classes of Motivation Theories
Content Motivation Theories
Hierarchy of Needs Theory
ERG Theory
Two-Factor Theory
Acquired Needs Theory
Process Motivation Theories
Equity Theory
Goal-Setting Theory
Expectancy Theory
Reinforcement Theory
Types of Reinforcement
Schedules of Reinforcement
Combining the Motivation Process and Motivation Theories
Motivating Employees With Rewards and Recognition
How Each of the Motivation Theories Uses Rewards and
Recognition
Reward and Recognition Programs
Giving Praise
Trends and Issues in Management

18
 Chapter Summary
Case 11.1: The Walt Disney Company
Case 11.2: Clif Bar & Company: Creating a Sustainable World Through
Employee Engagement
Chapter 12. Leading With Influence
Leadership Theories
Leadership and Trust
Leaders Versus Managers
An Overview of Four Major Classifications of Leadership Theories
Leadership Trait Theory
Traits and Personality
Inconclusive Findings and Current Thinking
Behavioral Leadership Theories
Basic Leadership Styles
Two-Dimensional Leadership Styles
The Leadership Grid¯
Situational Leadership Theories
Contingency Leadership Model
Leadership Continuum Model
Path-Goal Model
Normative Leadership Model
Situational Leadership¯ Model
Comparing Leadership Models
Leadership Substitutes Theory
Contemporary Leadership Theories
Leader-Member Exchange (LMX) Theory
Visionary and Charismatic Leaders
Transformational and Transactional Leaders
Servant and Authentic Leaders
Trends and Issues in Management
Chapter Summary
Case 12.1: Brad Smith, CEO at Intuit
Case 12.2: Tim Cook Polishing Steve Jobs’s Apple: Really?
Chapter 13. Communication and Information Technology
Organizational Communication
Vertical Communication
Horizontal Communication
Grapevine Communication
Information Technology, Systems, and Networks
Information Technology and Big Data
Types of Information Systems
Information Networks

19
 The Interpersonal Communication Process and Communication Barriers
The Interpersonal Communication Process
Communication Barriers
Message Transmission Channels
Oral Communication
Nonverbal Communication
Written Communication
Combining Channels
Selecting the Message Transmission Channel
Sending Messages
Planning the Message
The Message-Sending Process
Checking Understanding: Feedback
Receiving Messages
The Message-Receiving Process
Retentive Listening
Active Listening
Responding to Messages
Response Styles
Dealing With Emotions and Emotional Intelligence
Criticism
Trends and Issues in Management
Chapter Summary
Case 13.1: Siemens
Case 13.2: Hello Barbie, Goodbye Privacy?
Part V: Controlling
Chapter 14. Managing Control Systems, Finances, and People
Organizational and Functional Area Control Systems
Organizational Systems Control
Functional Area/Department Control Systems
Establishing Control Systems
The Control Systems Process
Control Frequency and Methods
Financial Controls: The Master Budgeting Process
Operating Budgets
Capital Expenditures Budget
Financial Budgets and Statements
Personal Finance
Managing People
Coaching
Management by Walking Around
Counseling

20
 Disciplining
Handling Complaints
Trends and Issues in Management
Chapter Summary
Case 14.1: General Electric
Case 14.2: Figures Do Not Lie but Liars Figure: The “Searing” Truth
Chapter 15. Operations, Quality, and Productivity
Operations
Operations and Products
Manufacturing and Service Operations
Classifying Operations Systems
Tangibility of Products
Level of Customer Involvement
Operations Flexibility
Resources and Technology Management
Multiple Classifications
Designing Operations Systems
Product Mix and Design
Facility Layout
Facility Location and Capacity Planning
Managing Operations Systems and the Supply Chain
Planning Schedules and Project Management
Inventory Control
Materials Requirement Planning (MRP)
Supply Chain Management
Quality Control
Productivity and the Balanced Scorecard
How Productivity Affects Wages and the Standard of Living
Measuring and Increasing Productivity
The Balanced Scorecard and Dashboards
Trends and Issues in Management
Chapter Summary
Case 15.1: 3M
Case 15.2: Zara’s Formula to Successful Fast Fashion: Innovative Supply
Chain Management
Glossary
Notes
Author Index
Company Index
Subject Index

21
Preface

In his book Power Tools, John Nirenberg asks, “Why are so many well-intended students
learning so much and yet able to apply so little in their personal and professional lives?”
Students want more than just an understanding of the concepts of management. They also
want skills they can use in their everyday lives and at work. It’s not enough to learn about
management; they want to learn how to succeed in today’s business environment. This is
why I wrote this book.

If you look at the textbooks over time, they keep getting smaller as authors cut out material.
When writing this eighth edition, I decided to set a higher standard. I’ve actually added
more material while making the text more concise and completely updated it by adding
more than 1,250 new references for a total of more than 2,600. I’ve also added more than
700 new company examples. Compare the contents to any major competitor, and you will
find that, as reviewers consistently say, the real difference is that I offer superior quantity
and quality application and skill-development options that engage millennials.

I personally developed the total package to have the following competitive advantages:

A unique “how-to-manage” approach with a focus on personal advice on how to

succeed in today’s changing business environment of shared leadership
Eight types of high-quality application materials using the concepts to develop
critical-thinking skills
Five types of high-quality skill-building exercises to develop management skills that
can be utilized in students’ professional and personal lives
A flexible package—with all these features, instructors can design the course by
selecting the features that meet their needs
A lower price to students than major competitors

22
Designed to Meet a Variety of Learning Styles
Today’s students need to be engaged, as the old primary lecture method is no longer
effective. My text is very flexible and can be used with the traditional lecture method. But it
also offers a wide range of engaging activities to select from that best meet the professor and
student goals and preferred teaching/learning styles. Many of the specific learning
preferences of millennials have been addressed in the book’s overall approach, organization,
and distinctive features.

Active Learning. A design for active learning is addressed with a wide variety of
application activities and skill-building tools that can be used immediately in their
own lives.
Practical Approach. Students are provided with immediate feedback and ongoing
self-assessment opportunities found in the Work Application, Applying the
Concept, and Self-Assessment features. Organizational tools such as checklists,
summaries, and “how-to” instructions are integrated throughout.
Accessible Content. Text material presents management concepts followed by
application material so that students can break up the reading while applying the
concepts and getting feedback. The boxed items are not just passively reading an
example; they engage the student to come up with an answer. Content is chunked
into easily digested segments to help students process new ideas and concepts.
Online Resources. The text is accompanied by a password-protected instructor
website and an open-access student website (see the following for more details).
Also, while all the elements in the text are designed to be used by individuals, they
can also be used in group settings, making Management Fundamentals an ideal text
for online courses.

23
Integrated Three-Pronged Approach
As the title of this book implies, it involves a balanced, three-pronged approach to the
curriculum:

1. A clear understanding of management concepts

2. The application of management concepts for critical thinking in the real world
3. The development of management skills

I wrote this text and its supporting ancillary package to support these three distinct but
integrated parts. This text follows a management-functions approach covering all the
traditional concepts and current topics. The applications develop students’ critical-thinking
skills as they require them to apply specific concepts to their own work experience
(volunteer, part time, summer, or full time), to short situations, and to cases. In addition,
this text meets the challenge of the AACSB (Association to Advance Collegiate Schools of
Business) call for skills development. Since I wrote almost every exercise and application in
the package, the material is completely integrated to create a seamless experience in the
classroom or online.

The three key elements of concepts, applications, and skills are integrated throughout the
chapters. However, they are identified clearly and are delineated in some detail for your
reference in this preface and in Chapter 1. Recognizing the diverse needs of students and
faculty, they can be used flexibly to fit any course. Instructors can create their course by
using only features that fit with their objectives in class or online.

My goal is to make both students and instructors successful in and out of the classroom by
providing learning features that not only teach about management but also help students
succeed in the changing business environment.

24
Concepts
This text covers all key management topics and concepts. It is comprehensive in scope, as
shown by the detailed Learning Objectives at the front of each chapter. Each outcome is
reinforced and identified throughout the chapter. Key terms are highlighted in green to
emphasize the vocabulary of management for students.

25
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