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Essentials of
Contemporary
Management
Ninth Edition
Gareth R. Jones
Jennifer M. George
Rice University
viii Preface
• New end-of-chapter case on DTE Energy and and development, as well as improving custom-
company efforts to reenergize its workforce with ers’ online shopping experiences.
a shared sense of purpose to cut costs and avoid • New “Focus on Diversity” on using recruiting
layoffs. practices that promote diversity.
Chapter 10 • New section that discusses recent trends in per-
• New “Management Snapshot” on effective lead- formance appraisal strategies.
ership strategies at the Dana-Farber Cancer • New end-of-chapter case on how Salesforce sets
Institute. itself apart in a tight labor market.
• New section on the traits of servant leadership.
Chapter 13
• New “Managing Globally” on international dif- • Chapter content has been streamlined to focus
ferences in leadership. on the key components of effective communica-
• New “Management Insight” on the effective- tion at all levels of the organization. Technology
ness of leaders with high levels of emotional discussion has moved to Chapter 14.
intelligence. • New “Management Snapshot” on ways Boston
• New end-of-chapter case on how the CEO of Consulting Group encourages its employees to
Levi Strauss uses effective leadership strategies engage in short, informal interactions with col-
to help the company and its employees succeed. leagues as way of increasing communication
and reducing the need for lengthy meetings.
Chapter 11
• New “Management Snapshot” on how the U.S. • New “Manager as a Person” profiles the
Army’s use of teamwork helps in the battle cofounders of Hyphen, a technology platform
against bureaucracy. that lets businesses gather and analyze anony-
mous communications from employees.
• New “Management Insight” on the importance
of team members developing soft skills. • New “Ethics in Action” on how the use of ques-
tions can foster effective communication.
• New discussion on the skills and abilities of suc-
cessful virtual teams and the technology they use • New “Management Insight” on how to make a
to help with their long-distance work activities. positive first impression.
• New “Focus on Diversity” that provides strate- • New end-of-chapter case on how Netflix aims
gies for using team members’ diversity as a com- to keep communication honest throughout the
petitive advantage. organization.
• New discussion on recent research about high- Chapter 14
performing teams and the factors that contrib- • Chapter has been revised to include a discussion
ute to their success. of how information and technology help manag-
• New end-of-chapter case on how Adient, the ers make better decisions, linking this content
world’s largest supplier of automotive seating, to the discussion of operations management.
uses high-performance teams to maintain its • New “Management Snapshot” on Kraft Heinz’s
competitive edge. efforts to make sure managerial decisions add
Chapter 12 value to the company.
• New “Management Snapshot” on Unilever’s • New “Management Insight” on the use of arti-
chief human resource officer and how she man- ficial intelligence to help identify situations
ages workforce planning and development at within an organization that require more active
the global consumer products company. leadership on the part of managers.
• New “Management Insight” on Home Depot’s • New “Ethics in Action” on why Facebook users
CEO and his competitive strategy of using eco- are quitting the social networking platform over
nomic slowdowns to invest in employee training privacy issues.
Preface ix
• New “Managing Globally” feature on Happy explains their significance to practicing managers.
OrNot—a Finnish company that captures cus- In Chapter 6, we provide an integrated treatment
tomer sentiments about their shopping experi- of planning, strategy, and competitive advantage,
ences via in-store terminals labeled with four highlighting the crucial choices managers face as
different happy or sad faces. they perform the planning function. Throughout
• New end-of-chapter case on how Brooks Broth- the text, we emphasize important issues managers
ers redesigned its processes to make the cloth- face and how management theory, research, and
ing retailer more relevant and more efficient. practice can help them and their organizations be
effective.
We feel confident that the changes to the ninth The last two chapters cover the topics of com-
edition of Essentials of Contemporary Management munication, operations management, and technol-
will stimulate and challenge students to think ogy, subjects that tend to be difficult to teach to
about their future in the world of organizations. new management students in an interesting way.
We have streamlined the chapters in an effort to
highlight the key concepts students need to know
Emphasis on Applied and understand when it comes to how managers
address these important processes.
Management
We went to great lengths to bring the manager
back into the subject matter of management.
Flexible Organization
That is, we wrote our chapters from the perspec- We designed the grouping of chapters to allow
tive of current or future managers to illustrate, in instructors to teach the chapter material in the
a hands-on way, the problems and opportunities order that best suits their needs. Instructors are not
they face and how they can effectively meet them. tied to the planning, organizing, leading, and con-
For example, in Chapter 3, we provide an inte- trolling framework, even though our presentation
grated treatment of ethics and diversity that clearly remains consistent with this approach.
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.
xii
individual schools, the mission of the school, and purchase our products. You can e-mail our Product
the faculty. While the Essentials of Contemporary Specialists 24 hours a day to get product training
Management teaching package makes no claim of online. Or you can search our knowledge bank of
any specific AACSB qualification or evaluation, we Frequently Asked Questions on our support web-
have within Essentials of Contemporary Management site. For Customer Support, call 800-331-5094 or
labeled selected questions according to the eight visit www.mhhe.com/support. One of our Techni-
general knowledge and skills areas. cal Support Analysts will be able to assist you in a
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Acknowledgments
Finding a way to integrate and present the rapidly We extend our special thanks to the faculty who
growing literature on contemporary management gave us detailed chapter-by-chapter feedback dur-
and make it interesting and meaningful for stu- ing the development of the ninth edition:
dents is not an easy task. In writing and revising
Joseph Aranyosi, University of Phoenix
the various editions of Essentials of Contemporary
William Belcher, Troy University
Management, we have been fortunate to have had
Cydna Bougae, Montclair State University
the assistance of several people who have con-
Marcia Simmering Dickinson, Louisiana Tech
tributed greatly to the book’s final form. First, we
University
are grateful to Michael Ablassmeir, our executive
Carla C. Flores, Ball State University
brand manager, for his support and commitment
Dana Frederick, Missouri State University
to our project, and for always finding ways to pro-
Shahbaz Gill, University of Illinois at
vide the resources that we needed to continually
Urbana–Champaign
improve and refine our book. Second, we are grate-
Terry A. Girdon, Pennsylvania College of
ful to Haley Burmeister, our product developer,
Technology
for so ably coordinating the book’s progress, and
Joanne Hartsell, East Carolina University
to her and Deb Clare, our marketing manager, for
Anne Kelly Hoel, University of Wisconsin–Stout
providing us with concise and timely feedback and
Tammy G. Hunt, University of North Carolina,
information from professors and reviewers that
Wilmington
have allowed us to shape the book to the needs of
Tiffany Maldonado, University of Houston
its intended market. We also thank David Hash
Downtown
for executing an awe-inspiring design and Maria
Marina Sebastijanovic, University of Houston
McGreal for coordinating the production process.
Joanna Shaw, Tarleton State University
We are also grateful to the many colleagues and
Brandi L. Ulrich, Anne Arundel Community
reviewers who provided us with useful and detailed
College
feedback, perceptive comments, and valuable sug-
gestions for improving the manuscript. Our thanks to these faculty who have contrib-
Producing any competitive work is a challenge. uted greatly to previous editions of Essentials of
Producing a truly market-driven textbook requires Contemporary Management:
tremendous effort beyond simply obtaining reviews
Garry Adams, Auburn University
on a draft manuscript. Our goal behind the develop-
M. Ruhul Amin, Bloomsburg University of
ment of Essentials of Contemporary Management has
Pennsylvania
been clear-cut: to be the most customer-driven essen-
Fred Anderson, Indiana University of Pennsylvania
tials of management text and supplement package
Jacquelyn Appeldorn, Dutchess Community
ever published! The favorable reception that our book
College
has received from its users suggests that our thor-
Barry Armandi, SUNY–Old Westbury
ough product development plan did lead to a book
Dave Arnott, Dallas Baptist University
that has met the expectations of both faculty and stu-
Debra Arvanites, Villanova University
dents. For the new edition, we have continued to add
Douglas E. Ashby, Lewis & Clark Community
new reviewers to the more than 200 faculty who orig-
College
inally took part in developmental activities ranging
Joe Atallah, Devry University
from regional focus groups to manuscript reviews
Kenneth E. Aupperle, The University of Akron
and surveys. Consequently, we’re confident that the
Barry S. Axe, Florida Atlantic University
changes we have made to our book and its excellent
Andrea D. Bailey, Moraine Valley Community
support package will even more closely meet your
College
expectations and needs.
xiv
Acknowledgments xv
xvi Acknowledgments
Acknowledgments xvii
Cyndy Ruszkowski, Illinois State University Scott Taylor, Moberly Area Community College
Nestor St. Charles, Dutchess Community College Jerry L. Thomas, Arapahoe Community College
Lynda St. Clair, Bryant College Joe Thomas, Middle Tennessee State University
Michael Santoro, Rutgers University Kenneth Thompson, DePaul University
John L. Schmidt Jr., George Mason University John Todd, University of Arkansas
Gerald Schoenfeld Jr., James Madison University Thomas Turk, Chapman University
Don Schreiber, Baylor University Isaiah Ugboro, North Carolina A & T University
Robert Schwartz, University of Toledo Brandi Ulrich, Anne Arundel Community College
Marina Sebastijanovic, University of Houston Linn Van Dyne, Michigan State University
Amit Shah, Frostburg State University Jaen Vanhoegaerden, Ashridge Management
Joanna Shaw, Tarleton State University College
Michael Shapiro, Dowling College Barry L. Van Hook, Arizona State University
Raymond Shea, Monroe Community College Gloria Walker, Florida Community College
Richard Ray Shreve, Indiana University Northwest Stuart H. Warnock, University of Southern
Sidney Siegel, Drexel University Colorado
Thomas D. Sigerstad, Frostburg State University Tommy Lee Waterson, Northwood University
Roy L. Simerly, East Carolina University Philip A. Weatherford, Embry-Riddle Aeronautical
Randi L. Sims, Nova Southeastern University University
Sharon Sloan, Northwood University Ben Weeks, St. Xavier University
Erika E. Small, Coastal Carolina University Emilia S. Westney, Texas Tech University
Andrea Smith-Hunter, Siena College Donita Whitney-Bammerlin, Kansas State
Brien Smith, Ball State University University
Marjorie Smith, Mountain State University Robert Williams, University of North Alabama
Nayrie Smith, Miami Dade College W. J. Williams, Chicago State University
Raymond D. Smith, Towson State University Shirley A. Wilson, Bryant College
William A. Sodeman, University of Southern Robert H. Woodhouse, University of St. Thomas
Indiana Michael A. Yahr, Robert Morris College
Carl J. Sonntag, Pikes Peak Community College D. Kent Zimmerman, James Madison University
Robert W. Sosna, Menlo College
Finally, we are grateful to two incredibly won-
William Soukup, University of San Diego
derful children, Nicholas and Julia, for being all
Rieann Spence-Gale, Northern Virginia
that they are and for the joy they bring to all who
Community College–Alexandria Campus
know them.
H. T. Stanton Jr., Barton College
Jerry Stevens, Texas Tech University Gareth R. Jones
William A. Stoever, Seton Hall University
Jennifer M. George
Charles I. Stubbart, Southern Illinois University at
Jesse H. Jones Graduate School of Business
Carbondale
Rice University
James K. Swenson, Moorhead State University
Karen Ann Tarnoff, East Tennessee State
University
Contents
Part One Management and Managers
Overview
What Is Management? 4 CHAPTER TWO
Achieving High Performance: A Manager’s Goal 4
I Why Study Management? 6 Values, Attitudes,
Emotions, and Culture:
Essential Managerial Tasks 6
Planning 7 I Organizing 8 I Leading 8
The Manager as a
I Controlling 8 I MANAGER AS A PERSON: Making Sam Edwards/age
Person 44
ER Visits as Painless as Possible 9 I Performing fotostock RF
Managerial Tasks: Mintzberg’s Typology 10
Management Snapshot
Levels of Managers 11 Success Is No Accident for Carnival’s CEO 45
Levels of Management 12
Overview
Types of Managerial Skills 14
MANAGEMENT INSIGHT: Success as a City
Enduring Characteristics: Personality Traits 46
Manager 15 The Big Five Personality Traits 47 I Other Personality
Traits That Affect Managerial Behavior 50 I Additional
Managers Versus Entrepreneurs 18 Personality Assessments 51
Characteristics of Entrepreneurs 18
I Entrepreneurship and Management 18 Values, Attitudes, and Moods and
Emotions 52
Challenges for Management in a Global Values: Terminal and Instrumental 52 I ETHICS IN
Environment 20 ACTION: Promoting Ethical Values in the Hotel Industry 53
Building Competitive Advantage 20 I Maintaining I Attitudes 54 I Moods and Emotions 57
Ethical and Socially Responsible Standards 23
I ETHICS IN ACTION: Giving Employees a Nudge 24 Emotional Intelligence 58
Organizational Culture 60
Summary and Review 27
Managers and Organizational Culture 62 I The Role
Management in Action 28 of Values and Norms in Organizational Culture 63
Topics for Discussion and Action 28 I BUILDING
I Culture and Managerial Action 67
MANAGEMENT SKILLS 28 I Managing Ethically 29 Summary and Review 69
xviii
Contents xix
xx Contents
Summary and Review 147 Topics for Discussion and Action 148 I BUILDING
MANAGEMENT SKILLS 149 I Managing Ethically 149 I Small
Management in Action 148
Group Breakout Exercise 149 I Be the Manager 150 I CASE
IN THE NEWS: Foxconn Takes a Chance on Wisconsin 150
Contents xxi
Summary and Review 210 Topics for Discussion and Action 211 I BUILDING
MANAGEMENT SKILLS 211 I Managing Ethically 212 I Small
Management in Action 211
Group Breakout Exercise 212 I Be the Manager 212 I CASE
IN THE NEWS: Best Buy Strategies Evolve with the Times 213
Management Snapshot
Management Snapshot
P&G Takes a Hard Look at Digital Ads 253
Alaska Air Structures Work with Passengers in Mind 219
Overview
Overview What Is Organizational Control? 254
Designing Organizational Structure 220 The Importance of Organizational Control 255
The Organizational Environment 220 I MANAGEMENT INSIGHT: Controlling Your Office
I Strategy 221 I Technology 222 I Human Inbox 256 I Control Systems and Technology 257
Resources 222 I The Control Process 259
Grouping Tasks into Jobs: Job Design 223 Output Control 262
Job Enlargement and Job Enrichment 224 Financial Measures of Performance 262
I MANAGING GLOBALLY: IKEA Is Redesigning Itself I MANAGEMENT INSIGHT: WANTED: Strong Writing
for the Future 225 I The Job Characteristics and Problem-Solving Skills 264 I Organizational
Model 226 Goals 264 I Operating Budgets 265 I MANAGING
GLOBALLY: Zero-Based Budgeting Helps Control
Grouping Jobs into Functions and Divisions: Expenses 266 I Problems with Output Control 267
Designing Organizational Structure 227
Behavior Control 267
Functional Structure 227 I Divisional Structures:
Direct Supervision 268 I Management by
Product, Geographic, and Market 229 I ETHICS IN
Objectives 268 I Bureaucratic Control 270
ACTION: Pfizer’s Prescription for a Healthier Organizational
Structure 231 I MANAGER AS A PERSON: McDonald’s
I Problems with Bureaucratic Control 271
CEO Continues to Change Things Up 234 I Matrix and Organizational Culture and Clan Control 273
Product Team Designs 235 Adaptive Cultures versus Inert Cultures 273
xxii Contents
Overview Overview
The Nature of Motivation 288 The Nature of Leadership 322
Personal Leadership Style and Managerial Tasks 323
Expectancy Theory 291 I Servant Leadership 323 I ETHICS IN ACTION:
Expectancy 291 I Instrumentality 292 Servant Leadership at Zingerman’s 324 I Leadership
I Valence 293 I Bringing It All Together 293 Styles across Cultures 325 I Power: The Key to
Leadership 326 I Empowerment: An Ingredient in
Need Theories 294 Modern Management 328
Maslow’s Hierarchy of Needs 294 I Herzberg’s
Motivator-Hygiene Theory 296 I McClelland’s Trait and Behavior Models of
Needs for Achievement, Affiliation, and Power 296 Leadership 329
I Other Needs 297 The Trait Model 329 I The Behavior Model 330
Contents xxiii
Overview Overview
Groups, Teams, and Organizational Strategic Human Resource Management 388
Effectiveness 354 Overview of the Components of HRM 389
MANAGEMENT INSIGHT: Team Members Need Soft I MANAGEMENT INSIGHT: Strategic HRM Helps Build a
Skills 355 I Groups and Teams as Performance Strong Future 390
Enhancers 356 I Groups, Teams, and
Responsiveness to Customers 356 I Teams The Legal Environment of HRM 392
and Innovation 357 I Groups and Teams as
Motivators 357
Recruitment and Selection 393
Human Resource Planning 394 I Job Analysis 395
Types of Groups and Teams 358 I External and Internal Recruitment 395 I The
The Top Management Team 359 I Research Selection Process 397 I FOCUS ON DIVERSITY:
and Development Teams 359 I Command Recruiting Practices That Promote Diversity 397
Groups 359 I Task Forces 360 I Self-Managed
Work Teams 360 I MANAGEMENT INSIGHT: Self- Training and Development 401
Managed Teams Key to Gore’s Success 361 I Virtual Types of Training 401 I Types of
Teams 362 I Friendship Groups 364 I Interest Development 402 I Transfer of Training
Groups 364 and Development 404
xxiv Contents
Essentials of
Contemporary
Management
Ninth Edition