Contents The World Has Changed Acknowledgments (pg. xxxi) About the Author (pg. 1)
(pg. xxi)
Chapter 1: Managing and Leading Today: The New Rules (pg. 2) Why Do Managers Have to Be Leaders? (pg. 4) Today, Everyone Needs to Be a Leader (pg. 4) What Being a Leader Means for You (pg. 4) PERSPECTIVES: Dolores Bernardo (pg. 5) What Is the Difference between a Manager and a Leader? (pg. 7) PERSPECTIVES: John Fry (pg. 7) Traditional Views of Managers and Leaders (pg. 8) What Managers Actually Do (pg. 9) PERSPECTIVES: Jill Guindon-Nasir (pg. 11) What Is the Other Side of the Leadership Coin? (pg. 11) A Final Word: Changing World, Changing Expectations of Managers and Leaders (pg. 13) KEY TERMS (pg. 14) VISUAL SUMMARY (pg. 15)
Chapter 2: The Leadership Imperative: It’s Up to You (pg. 16) Leadership: Whose Responsibility Is It? (pg. 18) We All Need to Become Great Leaders (pg. 18) PERSPECTIVES: Lawton Fitt (pg. 19) Leadership Is Learned (pg. 19) What Is the Secret to Effective Leadership? (pg. 20) Competencies Explained (pg. 20) Five Components of Competencies (pg. 21) Threshold and Differentiating Competencies (pg. 21) Technical, Cognitive, and Relational Competencies (pg. 22) Competency Models (pg. 22)
Social and Emotional Competencies and Resonant Leadership (pg. 22) Self-Awareness: The Foundation of Social and Emotional Intelligence (pg. 24)
What Is the Secret to Influential Leadership? (pg. 25) Sources of Power Exist in Different Forms (pg. 26) Empowerment (pg. 27) Empowered Employees and Empowering Organizations (pg. 27)
STUDENT’S CHOICE: Big City Leader in a Small-Town Plant (pg. 28) Empowerment and Theories X, Y, and Z (pg. 29) The Empowerment Movement Today (pg. 29)
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What Is the Secret to Responsible Leadership? (pg. 30) Developing Values and Ethics (pg. 30) Levels of Ethics (pg. 31) Individual Ethics (pg. 31) Professional Ethics (pg. 32) Organizational Ethics (pg. 32) Societal Ethics (pg. 32)
Business Ethics: It’s Complicated
(pg. 33)
Ethics in Business and the Role of Law (pg. 33) Laws Often Follow Ethical Violations (pg. 33) When Laws Force People to Change: The International Anticorruption and Good Governance Act of 2000 (pg. 34) Dealing with Ethical Dilemmas at Work (pg. 34)
BUSINESS CASE: The Washington Post: A Lesson of Lasting Impact (pg. 35) Defining Ethics through Leadership (pg. 35)
How to Handle Everyday Decisions Ethically
(pg. 36)
What Happens When It Goes Wrong: The Slippery Slope (pg. 36) Rationalizing Unethical Behavior (pg. 37) When All Is Said and Done, Ethical Behavior Is Up to You (pg. 38)
How Do Theories and Models Explain Management and Leadership? (pg. 39) Trait Theories of Leadership (pg. 39) Behavior Models and Approaches to Leadership (pg. 40) Ohio State Studies: Consideration and Initiating Structure (pg. 40) University of Michigan Studies: Production- and Employee-Oriented Behavior (pg. 40) Leadership Grid (pg. 41)
Contingency Approaches to Leadership
(pg. 42)
Fiedler’s Contingency Theory (pg. 42) Situational Leadership Theory (pg. 42) Path-Goal Theory (pg. 43) Leader Substitutes Model (pg. 43)
The Study of Leadership Continues (pg. 43) Is It Time to Take a Stand for Transformational Leadership? (pg. 44) What Is HR’s Role in Supporting Excellent and Ethical Leadership? (pg. 45) The HR Cycle (pg. 45) Ethical Leadership Development (pg. 46) HR’s Leadership Roles (pg. 47) Whistle-Blower Protection (pg. 48)
CONTENTS
What Can We All Do to Become Great Leaders? (pg. 48) Self-Aware Leaders Are Authentic (pg. 49) Self-Aware Leaders Inspire Trust (pg. 50) Inspirational Leaders: Integrity, Courage, and Ethical Leadership (pg. 50) A Final Word on Leadership (pg. 51) KEY TERMS (pg. 52) VISUAL SUMMARY (pg. 54)
Chapter 3: Motivation and Meaning: What Makes People Want to Work? (pg. 56) What Is Motivation? (pg. 58) What Makes Work Meaningful? (pg. 58) The Flow Experience (pg. 59) Motivation: It’s Up to You (pg. 60) PERSPECTIVES: Bonaventure Agata (pg. 60) Great Leaders Inspire and Motivate Us (pg. 60) What Is the Link between Motivation and Psychology? (pg. 61) Intrinsic Motivation (pg. 62) Extrinsic Motivation (pg. 62) BUSINESS CASE: Google: Motivation for Innovation (pg. 63) Locus of Control (pg. 63) Motivation and the Big Five Dimensions of Personality (pg. 64) Which Theories of Motivation Are Important to Know? (pg. 65) What Are Basic and Higher-Order Needs Theories of Motivation? (pg. 66) Hierarchy of Needs (pg. 67) ERG Theory (pg. 67) Two-Factor Theory (pg. 68) Why Are the Three-Needs, Equity, Expectancy, and Goal-Setting Theories Popular? (pg. 69) Three-Needs Theory (pg. 69) Need for Achievement (pg. 69) Need for Affiliation (pg. 70) Need for Power (pg. 70) Personalized versus Socialized Power (pg. 71) Socialized Power, Prosocial Behavior, and Ubuntu (pg. 71) Measuring Needs for Achievement, Affiliation, and Power (pg. 71)
Equity Theory
(pg. 72)
Equity Theory and Cognitive Dissonance (pg. 73) Is Equity Theory Relevant Today? (pg. 73) Restoring Equity: What Managers Can Do (pg. 74)
Expectancy Theory (pg. 75) Goal-Setting Theory (pg. 76) Smart Goals (pg. 77) “Doing” and “Being” Goals (pg. 77)
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What Are Learning Theories? (pg. 78) Operant Conditioning Theory (pg. 78) Positive Reinforcement (pg. 78) Punishment (pg. 79) “What Did I Do Wrong?” (pg. 79) “Why Me?” (pg. 79) “I Must Be an Awful Person.” (pg. 80) “I Can’t Believe My Manager Did That in Front of Everyone.” (pg. 80) Operant Conditioning: Does It Really Work? (pg. 80)
Social Learning Theory
(pg. 81)
Vicarious Learning: The Bobo Doll Experiment (pg. 81) Self-Reinforcement: Don’t Wait for Others to Reward You (pg. 81) Self-Efficacy (pg. 82)
How Can We Integrate Theories of Motivation? (pg. 83) STUDENT’S CHOICE: Lance Armstrong and LIVESTRONG (pg. 83) What Role Does HR Play in Motivation? (pg. 84) Compensation and Reward Programs (pg. 84) The Job Characteristics Model (pg. 85) What Can We All Do about Motivation? (pg. 86) Self-Awareness and Motivation (pg. 86) Empathy and Motivation (pg. 87) A Final Word on Motivation and Meaning at Work (pg. 88) KEY TERMS (pg. 88) VISUAL SUMMARY (pg. 91)
Chapter 4: Communication: The Key to Resonant Relationships (pg. 94) Why Is Communication Central to Effective Relationships at Work? (pg. 96) PERSPECTIVES: Karen Lombardo (pg. 96) How Do Humans Communicate? (pg. 97) Language: Our Human Specialty (pg. 97) Verbal and Sign Language (pg. 98) Written Language (pg. 99) Denotation and Connotation (pg. 100)
Nonverbal Communication: Our Bodies, Our Voices, and Pacing (pg. 100) Body Language (pg. 101) Vocal Intonation, Volume, and Pacing in Communication (pg. 101)
How Do We Communicate and Interpret Sophisticated Information? (pg. 102) Expressing Emotions: How Nonverbal Behavior Gives Us Away When It Comes to Feelings (pg. 102) A Sophisticated Skill: Interpreting Emotions, Opinions, and Facts at Work (pg. 103)
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How We Manage Our Image through Communication (pg. 103) Saving Face (pg. 103) A Strategy for Saving Face and Keeping Relationships Healthy (pg. 104)
Making Sense of Information (pg. 104) What Is the Interpersonal Communication Process? (pg. 106) Models of Communication (pg. 107) The Shannon-Weaver Model of Communication (pg. 107) The Schramm Model of Communication (pg. 107) The Berlo Model of Communication (pg. 107)
Effective and Efficient Communication (pg. 108) Choosing “Rich” or “Lean” Communication Channels (pg. 108) How Do We Use Information Technology to Communicate at Work? (pg. 110) E-Mail and Text Messaging (pg. 110) Web Conferencing and Videoconferencing (pg. 110) BUSINESS CASE: IBM: IBM and Second Life (pg. 111) What Are Common Barriers to Effective Communication? (pg. 112) When Language Gets in the Way of Communication (pg. 112) Dialects (pg. 112) Jargon: A Shortcut to Communication That Can Backfire (pg. 113)
Poor Communication: It Happens Too Often! (pg. 114) Selective Perception and Stereotyping: The Enemies of Communication (pg. 114) The Interaction of Communication and Power (pg. 115) Why Is It Challenging to Communicate in a Socially Diverse World? (pg. 116) Communication and Culture (pg. 116) Nonverbal Behavior in Cross-Cultural Communication (pg. 116) Communication in High-Context and Low-Context Cultures (pg. 117)
Yes, Men and Women Communicate Differently (pg. 117) Communication and the Age Factor (pg. 118) What Is Organizational Communication? (pg. 119) Direction of Communication Flow (pg. 119) STUDENT’S CHOICE: Anthony Idle and Liberty Building Systems (pg. 120) Organizational Communication Networks (pg. 121) Formal vs. Informal Communication (pg. 122) PERSPECTIVES: Peter Oliver (pg. 123) What Every Manager Deals with Sooner or Later: Crisis Communication (pg. 124) The Power of Storytelling (pg. 125)
What Can HR Do to Ensure Effective Communication and Resonant Relationships in Organizations? (pg. 126) Communicating Labor Laws (pg. 127) Gathering and Communicating Employee Engagement Information (pg. 127) What Can We All Do to Improve Communication and Build Resonant Relationships at Work? (pg. 128) A Few Basic Rules for Sending Clear and Powerful Messages (pg. 129) When to Break the Rules (pg. 129) A Final Word on Communication and Leadership (pg. 131) KEY TERMS (pg. 132) VISUAL SUMMARY (pg. 134)
Chapter 5: Planning and Strategy: Bringing the Vision to Life (pg. 136) How Do People Plan for the Future? (pg. 138) Planning Defined (pg. 138) Exploring How People Think about and Plan for the Future (pg. 139) Goal-Oriented Planning (pg. 139) Directional Planning (pg. 139) Action-Oriented Planning (pg. 140)
What Does Planning Look Like in Organizations? (pg. 141) Plans: More Than Goals and Metrics (pg. 141) Types of Plans Used in Organizations (pg. 142) How Do You Plan in Uncertain Times? (pg. 143) Creating Plans That Can Change: A Modular Approach (pg. 144) Goals, Subgoals, Milestones, and Action Steps: Mapping the Journey to Your Destination (pg. 144) Modular Planning: What We Can Learn from Blackjack (pg. 145)
Scenario Planning (pg. 146) What Is a Mission? Why Does Vision Matter? (pg. 147) PERSPECTIVES: Luis Ottley (pg. 147) Mission Clarity Leads to Better Choices (pg. 147) Vision: Our Highest Aspiration (pg. 149) What Is Strategy? (pg. 150) Strategy Links Mission, Vision, Goals, and Actions (pg. 150) BUSINESS CASE: 3M: Investing in the Future (pg. 150) Types of Strategies (pg. 151) Corporate Strategies (pg. 152) Business Strategies (pg. 155) Functional Strategies (pg. 156)
CONTENTS
What Needs to Be Considered in a Strategic Planning Process? (pg. 156) Environmental Scanning (pg. 157) Economic Environment (pg. 157) Sociocultural Environment (pg. 157) Legal and Tax Environment (pg. 157) Political Environment (pg. 158) Technological Environment (pg. 158) Natural Environment (pg. 158) Last but Not Least: The Industry Environment (pg. 159)
Stakeholder Analysis (pg. 159) STUDENT’S CHOICE: FreshDirect: Great Service Is Only a Click Away (pg. 160) What Are the Steps in the Strategic Planning Process? (pg. 161) Step 1: Review or Evaluate Mission, Vision, Goals, and Strategies (pg. 162) Steps 2 and 3: Conduct Internal and External Analyses (pg. 162) SWOT Analysis: A Popular Approach to Internal and External Analysis (pg. 162) Drawbacks of SWOT Analysis (pg. 163)
Step 4: Craft Strategies
(pg. 163)
The BCG Matrix: One Way to “See” a Business (pg. 164) Drawbacks of the BCG Matrix (pg. 164)
Steps 5 and 6: Implement and Evaluate Strategies (pg. 165) Implementing a Plan Is Sometimes Called “Execution” (pg. 165) Evaluation and “Must-Wins” (pg. 165)
What Is HR’s Role in Planning and Strategy? (pg. 166) Recruiting Employees (pg. 166) Selecting the “Right” Employees (pg. 167) Succession Planning (pg. 167) Workforce Growth and Reductions (pg. 167) What Can We All Do to Support Effective Strategic Planning? (pg. 169) Pattern Recognition: A Key Element of Strategic Planning (pg. 169) Developing a Personal Vision (pg. 170) A Final Word on Planning and Strategy (pg. 171) KEY TERMS (pg. 172) VISUAL SUMMARY (pg. 174)
Chapter 6: The Human Side of Planning: Decision Making and Critical Thinking (pg. 176) What Is Decision Making? (pg. 178) Decision Making Defined (pg. 178) Types of Decisions (pg. 178)
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STUDENT’S CHOICE: Tackling the Big Issues at Antares (pg. 180) How Do Cognitive and Emotional Processes Affect Decision Making? (pg. 181) Reason and Logic in Decision Making (pg. 182) Cognitive Processing: Perceptions Impact How We Understand Information (pg. 182) Schemas: The Brain’s Filing System for Information (pg. 182) Stereotypes (pg. 183) The Halo Effect (pg. 184)
Emotions: A Legitimate and Important Part of Decision Making (pg. 185) Intuition in Decision Making (pg. 186) How Can You Apply a Systematic Approach to Making Decisions? (pg. 187) Step 1: Identify the Problem (pg. 188) Step 2: Establish the Decision Criteria (pg. 189) Step 3: Allocate Weights to Decision Criteria (pg. 190) Step 4: List Alternatives (pg. 190) Step 5: Analyze Alternatives (pg. 191) Step 6: Choose an Alternative (pg. 192) Step 7: Implement the Decision (pg. 192) Step 8: Evaluate the Decision (pg. 193) How Can People Make Good Decisions with Incomplete Information? (pg. 194) Bounded Rationality (pg. 194) PERSPECTIVES: Gavin Patterson (pg. 195) 80/20 Rule (pg. 196) How Can You Improve Your Critical Thinking Skills and Make Better Decisions? (pg. 197) Critical Thinking Defined (pg. 197) BUSINESS CASE: Wikipedia: Critical Thinking Required (pg. 198) Critical Thinking Errors and How to Avoid Thinking Traps (pg. 199) What Can HR Do to Support Good Decision Making and Critical Thinking? (pg. 201) Brainstorming (pg. 202) The Delphi Technique (pg. 202) What Can We All Do to Improve Critical Thinking and Decision Making? (pg. 203) Mindfulness: The Secret to Conscious Decision Making (pg. 203) Double-Loop Learning (pg. 204) A Final Word on Decision Making and Critical Thinking (pg. 205) KEY TERMS (pg. 206) VISUAL SUMMARY (pg. 208)
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Chapter 7: Change: A Focus on Adaptability and Resiliency (pg. 210) What Is Change and How Do You React to It? (pg. 212) Change: What It Means to You (pg. 212) Change Is Constant (pg. 213) Why Do Organizations Change? (pg. 214) STUDENT’S CHOICE: Patagonia (pg. 215) When Social Changes Come to Work: Diversity, Inclusion, and Change (pg. 216) Gender, Ethnicity, and Pay (pg. 217) Age Demographics and Change (pg. 217)
Shifts in the World’s Economies (pg. 218) What Is the Difference between Incremental and Transformational Change? (pg. 220) Revolutionary and Evolutionary Change: “Slow” Is Not Always Better (pg. 221) Incremental Changes That Led to a Worldwide Financial Crisis (pg. 221) The Long Story Leading to a Global Recession (pg. 222) Maybe No One Noticed There Was a Problem (pg. 222)
Which Models Can Help Us Understand Change? (pg. 224) Lewin’s Force Field Analysis Model of Change
(pg. 224)
Consider the Context: The “Whole Picture” (pg. 225) Consider the Power of Culture (pg. 227) Studying a System Changes the System (pg. 227)
Change Is Constant: The Permanent White-Water Metaphor (pg. 227) What Practical Models Can Help Us Manage Change in Organizations? (pg. 228) Kotter’s Eight-Stage Change Model (pg. 228) Kotter Stages 1 through 5: Preparing for Change (pg. 228) Kotter Stage 1 (pg. 228) Kotter Stage 2 (pg. 230) Kotter Stage 3 (pg. 230) Kotter Stage 4 (pg. 231) Kotter Stage 5 (pg. 231) Kotter Stages 6 through 8: Change (pg. 231) Kotter Stage 6 (pg. 231) Kotter Stage 7 (pg. 231) Kotter Stage 8 (pg. 231)
Gregory Shea’s Work Systems Model
(pg. 231)
Shea’s Levers of Change in the Work System Model (pg. 232) Shea on How to Choose What to Change (pg. 233)
How Do People Change? (pg. 235) Change: It Is Not Always Easy for People (pg. 235) The Psychology and Neuropsychology of Individual Change (pg. 235) Intentional Change (pg. 236)
PERSPECTIVES: Mark McCord-Amasis (pg. 237) Leading Change in Groups, Organizations, and Communities (pg. 238) Gestalt Cycle of Experience Applied to Change (pg. 238) The Gestalt Cycle of Experience and Change in Groups, Organizations, and Communities (pg. 239) The Gestalt Cycle of Experience: It Works for Groups Even When Controversial Changes Need to Be Explored (pg. 240)
BUSINESS CASE: Cambodia: Combatting the Spread of HIV (pg. 241) What Can HR Do to Foster Effective Change? (pg. 242) Organization Development Defined (pg. 242) Action Research (pg. 243) Leadership Competency Development and Change (pg. 243) What Can We All Do to Support Change? (pg. 244) Become a Change Agent (pg. 245) Caring for Others during Change: Empathy, Inspiration, and Managing Resistance (pg. 245) Facing Change with Courage (pg. 246) STUDENT’S CHOICE: Horses as Healers (pg. 247) A Final Word on Change (pg. 248) KEY TERMS (pg. 249) VISUAL SUMMARY (pg. 250)
Chapter 8: Workplace Essentials: Creativity, Innovation, and a Spirit of Entrepreneurship (pg. 252) Why Are Creativity, Innovation, and Entrepreneurship at the Heart of Business? (pg. 254) Hypercompetition (pg. 254) Adopt a Long-Term Outlook and Embrace Innovation (pg. 254) PERSPECTIVES: Joe Steier (pg. 255) What Is Creativity? (pg. 256) Creativity Defined (pg. 256) Convergent and Divergent Thinking (pg. 257) The Left vs. Right Brain Myth (pg. 257) The Neuroscience of Creativity: Thinking and Feeling (pg. 258) How Can We Encourage Creativity at Work? (pg. 259) Developing a Culture Where Creativity Is Valued (pg. 259) “The Weird Rules of Creativity” (pg. 260) What Is Innovation and Why Is It Important? (pg. 262) STUDENT’S CHOICE: Innovation: It’s Everywhere (pg. 262) Innovation: What It Looks Like in the World of Business (pg. 263) BUSINESS CASE: Seventh Generation: Innovation and a Long-Term View (pg. 264) Most Innovative Companies and Products (pg. 265)
CONTENTS
How Can We Foster Innovation in People and Companies? (pg. 267) PERSPECTIVES: Dato’ Nooraishah Ahmad Tajuddin (pg. 267) Structures That Promote Innovation (pg. 268) Skunk Works® (pg. 268) Idea Incubators (pg. 269)
Innovative Divisions Outside an Organization’s Bureaucratic Hierarchy (pg. 269) What Is Entrepreneurship? (pg. 270) The Importance of Small Businesses in Our Economies (pg. 271) STUDENT’S CHOICE: Cooperatives in Zambia (pg. 271) Profile of an Entrepreneur (pg. 273) Social Entrepreneurship (pg. 274) How Does a New Business Get Started? (pg. 274) Questions to Ask When Starting a Business (pg. 275) Writing a Business Plan (pg. 276) Where Does the Money Come From? (pg. 277) The Life Cycle of a Start-Up Business (pg. 277) Stage 1: Start-Up (pg. 277) Stage 2: Growth (pg. 278) Stage 3: Maturity (pg. 278) Stage 4: Decline or Renewal (pg. 278)
How to Avoid Common Pitfalls and Succeed as an Entrepreneur (pg. 279) Good Leadership and Management Will Result in Success (pg. 279) Develop Your Employees (pg. 279) Remember Your Business Plan and Understand Your Finances (pg. 280) Stay Flexible (pg. 280) Manage Growth and Measure Success (pg. 280) Marketing Matters (pg. 280) Focus on Customer Service (pg. 280) Be a Good Community Member (pg. 281)
BUSINESS CASE: R&R Health and Fitness Center: Kathleen and Rhett Reddell (pg. 281) What Is Intrepreneurship? (pg. 282) Intrepreneurship: How It Works in a Health Care Company (pg. 282) PERSPECTIVES: Joe Steier (pg. 282) Building Support for Ideas (pg. 283) What Is HR’s Role in Supporting Creativity, Innovation, and Entrepreneurship? (pg. 284) Laws and Regulations That Entrepreneurs Must Understand (pg. 284) Minimize Bureaucracy to Support Creativity and Innovations (pg. 285)
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What Can We All Do to Be More Creative, Innovative, and Entrepreneurial? (pg. 285) Becoming More Creative (pg. 285) Thinking Outside the Box (pg. 286) A Final Word on Creativity, Innovation, and Entrepreneurship (pg. 287) KEY TERMS (pg. 288) VISUAL SUMMARY (pg. 290)
Chapter 9: Organizing for a Complex World: Structure and Design (pg. 292) Why Study Organizational Structure? (pg. 294) How Do Traditional Concepts Affect Our Views about Organizational Structure Today? (pg. 294) Hierarchy in Organizational Structures (pg. 295) Authority (pg. 296) Responsibility (pg. 297) Accountability (pg. 297)
Span of Control in Organizational Structures (pg. 297) Centralization of Decision Making in Organizational Structures (pg. 298) What Is an Organizational Chart? (pg. 299) How Can We “See” Organizations and Their Structures in Nontraditional Ways? (pg. 301) Open Systems Theory: No Organization Is an Island (pg. 301) Organizations Are Naturally Open to Their Environments (pg. 301) Understanding Open Systems and Complex Issues (pg. 303)
STUDENT’S CHOICE: Organizing to Fight Malaria (pg. 303) Mechanistic and Organic Organizations (pg. 304) Gareth Morgan’s Metaphors for Organizations (pg. 305) Organizations as Spiders and Starfish (pg. 305) How Are Organizations Classified and Legally Structured? (pg. 308) Common Forms of Ownership (pg. 310) Sole Proprietorship (pg. 310) Partnership (pg. 311) Corporation (pg. 311) How Corporations and Partnerships Can Be Structured Legally: S Corporations and LLCs (pg. 312)
Structural and Legal Relationships with Outside Entities (pg. 312) Cooperative Contracts (pg. 312) Licensing Agreements (pg. 313) Franchising (pg. 313) Wholly Owned Affiliates (pg. 314) Strategic Alliances (pg. 314)
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CONTENTS
What Are Common Contemporary Organizational Structures? (pg. 315) “Tall” and “Flat” Organizational Structures (pg. 316) BUSINESS CASE: IDEO: Empowering Employees (pg. 317) Departmentalization and Organizational Structure (pg. 318) Divisional Structures (pg. 318) Functional Departmentalization (pg. 319)
Groups and Teams: Where We Learn, Live, and Work (pg. 341) Groups Are Mysterious (pg. 341) How Does Leadership Behavior Affect Group Dynamics? (pg. 342) How Do Groups Change over Time? (pg. 344) Bruce Tuckman’s Model of Group Development (pg. 344)
Product Departmentalization (pg. 319)
Stage 1: Forming (pg. 344)
Process Departmentalization (pg. 319)
Stage 2: Storming (pg. 344)
Customer Departmentalization (pg. 320)
Stage 3: Norming (pg. 344)
Geographic Departmentalization (pg. 320)
Stage 4: Performing (pg. 344)
Matrix Structure (pg. 320) Hybrid Structure (pg. 321) Networked Organizational Structures and Power Dynamics (pg. 322) How Is Work Structured? (pg. 323) Tasks (pg. 324) Jobs (pg. 324) What Factors Affect the Design of Organizational Structures? (pg. 325) The Relationship between Structure and Strategy (pg. 325) Structure Follows Strategy (pg. 325) Strategy Can Be Determined by Structure (pg. 325) Structure and Strategy: An Iterative Process (pg. 326)
The External Environment (pg. 326) Technology (pg. 327) Company Size and Geography (pg. 327) Company Size (pg. 327) Geography (pg. 327)
Organizational Design: It’s Not Always Deliberate! (pg. 328) What Is HR’s Role in Organizational Design and Structure? (pg. 329) Job Analysis (pg. 329) What Can We All Do to Work Effectively within Our Organizations’ Structures? (pg. 330) Managing and Leading the Informal Organization (pg. 330) PERSPECTIVES: Carol de Wet (pg. 331) Managing “Up” (pg. 332) A Final Word on Organizational Structure (pg. 333) KEY TERMS (pg. 333) VISUAL SUMMARY (pg. 336)
Chapter 10: Teams and Team Building: How to Work Effectively with Others (pg. 338) Why Do Leaders Need Teams? (pg. 340) BUSINESS CASE: Charles H. Ramsey: Philadelphia Police Commissioiner Charles H. Ramsey on Leadership (pg. 340)
Stage 5: Adjourning (pg. 345)
Susan Wheelan’s Integrated Model of Group Development (pg. 345) Stage 1: Dependency and Inclusion (pg. 345) Stage 2: Conflict and Counterdependence (pg. 345) Stage 3: Trust and Structure (pg. 347) Stage 4: Productivity and Work (pg. 347) Stage 5: Termination (pg. 347)
Group Development: A Useful but Limited Way to Explain What Happens in Groups (pg. 347) How Do Group Dynamics Impact Team Effectiveness? (pg. 349) Group Roles (pg. 349) How Roles Develop in Groups (pg. 350) Stanford Prison Experiment (pg. 350)
Group Norms
(pg. 351)
Group Norms Need to Be Explicit (pg. 351) Emotional Intelligence and Group Norms (pg. 352)
PERSPECTIVES: Police Commissioner Charles H. Ramsey (pg. 352) Status and Power in Groups (pg. 353) Social Status (pg. 354) How We “Get” Social Status (pg. 354) Status and Influence in Groups (pg. 354) Personal Power in Groups (pg. 355) Power and Influence in a Leaderless Group (pg. 355)
Diversity Is a Group Dynamic
(pg. 356)
We Differ in How We Take In and Process Information (pg. 356) Personality Tests Can Help Us Understand Diversity (pg. 356) David Kolb’s Learning Styles (pg. 357)
Paradoxes of Group Life (pg. 358) How Do Teams Function at Work? Describing Work Teams (pg. 359)
(pg. 359)
Self-Directed Work Teams (pg. 359)
High-Performance Teams (pg. 360) STUDENT’S CHOICE: Mark Arnoldy— GlobeMed (pg. 361)
CONTENTS
How Can We Deal with the Challenges of Working in Groups? (pg. 362) The Big Six Challenges We Face in Groups (pg. 362) Membership (pg. 362)
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South America during the Era of Industrialization (pg. 385) China during the Era of Industrialization (pg. 386) The World Economic Stage as Western Industrialization Waned (pg. 386)
Participation (pg. 362)
The Post-Industrial Society and the Third Industrial Revolution (pg. 387)
Communication (pg. 363) Influence (pg. 363)
Information + Communications Technology Profound Social Change (pg. 387)
Social Loafing (pg. 364) Emotions (pg. 364)
Conformity and Groupthink
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(pg. 364)
Avoiding Dysfunctional Conformity in Groups (pg. 365)
What Role Does Conflict Play in Groups? (pg. 366) Functional and Dysfunctional Conflict (pg. 366) Sources of Conflict (pg. 366) Trust: The Basis for All Conflict Resolution Strategies (pg. 368) Conflict Management: Negotiating to Find the Win-Win (pg. 368) How Can HR Support Effective Team Performance? (pg. 369) Focus on Teams: HR’s Contributions (pg. 369) Resonant Team Building (pg. 369) Resonant Team Building: Getting Started (pg. 369) Resonant Team Building: Visioning (pg. 370)
What Can We All Do to Create and Sustain Resonant Teams? (pg. 370) Listening to What People Actually Say (pg. 371) Active Listening (pg. 371) Leading a Resonant Team (pg. 372) A Final Word on Teams and Team Building (pg. 373) KEY TERMS (pg. 374) VISUAL SUMMARY (pg. 376)
Chapter 11: Working in a Virtual World: Technology as a Way of Life (pg. 378) How Do Advances in Information and Communication Technologies Change Life and Work? (pg. 380) The Winning Formula: ICTs + People Successful Communication and Information Sharing (pg. 380) Sociotechnical Systems Theory (pg. 381) ICTs and Working in a Virtual World (pg. 381) How Did Technology Affect Life and Work during the Industrial Revolutions? (pg. 382) Technology and the First Industrial Revolution (pg. 382) Technology and the Second Industrial Revolution (pg. 383) Africa, India, South America, and China during the Era of Western Industrialization (pg. 384) Africa during the Era of Industrialization (pg. 384) India during the Era of Industrialization (pg. 385)
Social Change Changes at Work (pg. 388) Job Migration (pg. 388) Global Logistics (pg. 388)
How Have Computing and Telecommunication Technologies Evolved? (pg. 389) Computing Technology: From a U.S. Defense Strategy to Web 2.0 (pg. 389) The Internet, Intranets, Extranets, and the “Cloud” (pg. 390) The Evolution of Telecommunications (pg. 391) How Do People Use ICTs at Work? (pg. 392) E-Mail (pg. 392) PERSPECTIVES: Rachel Kamau (pg. 393) Text Messages (pg. 394) Using Emoticons (pg. 394) Teleconferences, Videoconferences, and Web Conferencing (pg. 394) Groupware (pg. 395) Social Networks (pg. 396) Putting It All Together: When Business Goes Multimedia (pg. 396) PERSPECTIVES: Sheila Robinson (pg. 396) Where and How Is Virtual Work Conducted? (pg. 397) Telecommuting (pg. 398) The Hybrid Worker (pg. 399) Virtual Teams (pg. 399) Making Virtual Teams More Effective (pg. 399) Trust and Accountability in Virtual Teams (pg. 400)
What Is a Virtual Organization? (pg. 401) BUSINESS CASE: Avon: Ahead of Its Time (pg. 402) Components of Virtual Organizations (pg. 402) Models of Virtual Organizations (pg. 403) Traditional Organizations Are Evolving to Better Use and Offer Virtual Services (pg. 404) The Evolution of Virtual Banking (pg. 404)
STUDENT’S CHOICE: Using the Internet to Change Lives: One Entrepreneur at a Time (pg. 405) The Evolution of Virtual Consumer Sales (pg. 406) The Evolution of Virtual Education and Training (pg. 406)
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What Are the Challenges of Working in a Virtual World? (pg. 408) The Challenges of the 24/7 Virtual Work World (pg. 408) Technology and Information Overload (pg. 408) The Challenge of Knowledge Management (pg. 409) What Can HR Do to Support Virtual Work? (pg. 411) The Privacy Question: HR’s Role in Monitoring Employee Electronic Communications (pg. 411) Establishing Guidelines for On-the-Job Social Networking (pg. 411) What Can We All Do to Work Most Effectively in a Virtual World? (pg. 412) Virtual Relationships Are Real Relationships (pg. 412) Using E-Mail Effectively at Work (pg. 413) Taking Charge of Virtual Teams (pg. 413) A Final Word on Working in a Virtual World (pg. 414) KEY TERMS (pg. 415) VISUAL SUMMARY (pg. 416)
Comparing Performance to Standards Taking Corrective Action (pg. 435) Feedback Processes (pg. 435)
(pg. 434)
Feedback Control (pg. 436) Feed-Forward Control (pg. 436) Concurrent Control (pg. 436)
Integrating Feedback (pg. 436) What Should Companies Control? (pg. 437) Controlling Financial Performance (pg. 437) Financial Controls (pg. 438) Accounting Controls (pg. 438) Beyond Budgeting (pg. 440)
Controlling Service: Customer Relationship Management (pg. 441) Quality Control (pg. 442) Business Process Reengineering (pg. 442) Total Quality Management (pg. 443)
PERSPECTIVES: Rafidah Mohammad Noor (pg. 444) Six Sigma (pg. 444)
Chapter 12: Organizational Controls: People, Processes, Quality, and Results (pg. 418) What Is the Organizational Control Process? (pg. 420) What Historical Perspectives Help Us Understand Control in Organizations? (pg. 421) Frederick Taylor and Scientific Management (pg. 421) Elton Mayo and the Hawthorne Studies (pg. 422) Mary Parker Follett: Control Is More Than Telling People What to Do (pg. 423) The Human Touch (pg. 423) STUDENT’S CHOICE: Spartan Surfaces (pg. 424) What Are Common Control Systems? (pg. 425) Bureaucratic Control Systems (pg. 425) Adhering to Rules versus Objective Assessment of Behavior and Outputs (pg. 426) Normative Control (pg. 427) Levers of Control (pg. 427) What Conventions and Forces Guide Organizational Control Processes? (pg. 429) Corporate Governance (pg. 429) Audits (pg. 430) Legislation and Sarbanes-Oxley (pg. 430) Legislation and Controls (pg. 430) Sarbanes-Oxley and Controls (pg. 431)
When Customers Control (pg. 432) BUSINESS CASE: Threadless: Customer Control (pg. 432) What Are the Typical Steps in the Control Process? (pg. 433) Creating Standards and Metrics (pg. 433) Measuring Performance (pg. 434)
Lean Management (pg. 445) ISO 9000 and 14000 (pg. 445) Baldrige Award (pg. 446)
What Can HR Do to Help Control for Effectiveness and Efficiency at Work? (pg. 447) The Performance Management Process (pg. 447) Management by Objectives: Use with Caution (pg. 448) Gathering Information about Employee Performance (pg. 448) Performance Review (pg. 449) What Can We All Do to Enhance Effectiveness and Efficiency at Work? (pg. 450) A Final Word on Organizational Control (pg. 451) KEY TERMS (pg. 452) VISUAL SUMMARY (pg. 454)
Chapter 13: Culture: It’s Powerful
(pg. 456)
What Is Culture? (pg. 458) Values (pg. 458) Attitudes (pg. 459) Norms (pg. 459) Why Is Culture Important at Work? (pg. 461) PERSPECTIVES: Michael Gaines (pg. 461) What Are the Dimensions of National and Organizational Culture? (pg. 462) Hofstede’s Dimensions of Culture (pg. 462) The GLOBE Project Value Dimensions (pg. 464) Culture: It’s Complicated! (pg. 466) Subcultures (pg. 467) Culture Change (pg. 467)
CONTENTS
How Can We Describe Organizational Cultures? (pg. 468) The Competing Values Model of Organizational Culture (pg. 468) “Strong” and “Weak” Cultures (pg. 469) BUSINESS CASE: McKinsey: They Get You for Life (pg. 470) STUDENT’S CHOICE: Tying One On at Vineyard Vines: Poised for Progress, Maintaining Family Culture (pg. 470) How Can We Study Organizational Culture? (pg. 472) Edgar Schein’s Levels of Culture (pg. 472) Observable Artifacts: The Top Level of Schein’s Organizational Culture Model (pg. 472) Values: The Middle Level of Schein’s Organizational Culture Model (pg. 473) Basic Assumptions: The Deepest Level of Schein’s Organizational Culture Model (pg. 473)
Myths and Heroes, Taboos, Sacred Symbols, and Language (pg. 473) Myths and Heroes (pg. 474) Taboos (pg. 474) Sacred Symbols (pg. 475) Language (pg. 476)
Leaders and Managers as Ethnographers (pg. 477) Organizational Culture: What’s Important Today? (pg. 479) Innovative Cultures (pg. 479) Customer Service Cultures (pg. 479) Diversity Cultures (pg. 480) Ethical Cultures (pg. 480) Cultures That Support Sustainability and Service (pg. 482) Cultures That Support the Whole Person: Mind, Body, Heart, and Spirit (pg. 483) How Can HR Support the Development of Positive Organizational Cultures? (pg. 484) HR’s Role in Creating an Inclusive Culture: A “Push” Strategy (pg. 484) Promoting Diversity and Inclusion in the Workplace and the EEOC (pg. 484) Preventing Sexual Harassment in the Workplace (pg. 487)
How HR Can Help Diagnose and Develop Culture: A “Pull” Strategy (pg. 488) What Can We All Do to Create Positive and Powerful Organizational Cultures? (pg. 489) Develop Your Cultural Intelligence (pg. 489) Leading Culture Change (pg. 490) A Final Note on the Power of Culture (pg. 491) KEY TERMS (pg. 492) VISUAL SUMMARY (pg. 494)
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Chapter 14: Globalization: Managing Effectively in a Global Economic Environment (pg. 496) What Is Globalization and Why Does It Matter? (pg. 498) Technology’s Role in Fostering Rapid Globalization (pg. 498) Globalization Matters Because It Is Changing Our Lives (pg. 499) How Have International Political and Economic Changes Fostered Globalization? (pg. 500) The End of the Cold War (pg. 500) Events That Shook the World during the Cold War (pg. 501) The Lasting Impact of the Cold War (pg. 502)
Fluid Boundaries and the Softening of the Nation-State (pg. 502) Social and Economic Changes Sweep across the World (pg. 503) What Key Economic Factors Are Affecting Global Business? (pg. 504) Global Trade (pg. 504) Global Investment (pg. 504) Global Finance and Debt (pg. 504) What Must Be Considered When Developing a Global Strategy? (pg. 505) Reviewing Legal and Organizational Design Issues (pg. 505) Global Strategy and Culture (pg. 506) Exporting Disney (pg. 506) Crafting an International Strategy (pg. 507)
PERSPECTIVES: Vittorio Colao (pg. 507) What Are the Opportunities and Risks in a Global Business Environment? (pg. 508) Opportunity: Expand Markets and Sales (pg. 508) Opportunity: Access to Expertise While Saving Money (pg. 509) Opportunity: Improve Operations (pg. 509) Risk: Uncertainty Due to Government Involvement and Political Instability (pg. 509) Risk: Growing Too Fast and False Economies of Scale (pg. 510) Risk: Partnerships Can Increase Exposure (pg. 510) Risk: Political and Popular Disapproval (pg. 510) What Opportunities Exist in Emerging Markets? (pg. 511) Brazil (pg. 512) Brazil: The Past (1889–1985) (pg. 512) Brazil: The Present (1985–2009) (pg. 513) Brazil: The Future (2010 and Beyond) (pg. 514) Advantages and Disadvantages of Doing Business with Brazil (pg. 515)
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Russia
(pg. 516)
Russia: The Past (1917–1989) (pg. 516) Russia: The Present (1989–2009) (pg. 516)
A Final Word on Globalization KEY TERMS (pg. 539) VISUAL SUMMARY (pg. 542)
(pg. 539)
Russia: The Future (2010 and Beyond) (pg. 518) Advantages and Disadvantages of Doing Business with Russia (pg. 518)
India
(pg. 519)
India: The Past (2500 B.C.E. to 1990) (pg. 521) India: The Present (1991–2009) (pg. 521) India: The Future (2010 and Beyond) (pg. 522) Advantages and Disadvantages of Doing Business with India (pg. 523)
China
(pg. 524)
China: The Past (1912–1989) (pg. 524) China: The Present (1989–2009) (pg. 525)
Chapter 15: Sustainability and Corporate Social Responsibility: Ensuring the Future
(pg. 544)
Why Are Sustainability and Corporate Social Responsibility Important in Today’s World? (pg. 546) What Is Sustainability? (pg. 546) Sustainability: People Have Been Practicing It for Generations (pg. 547) Why Sustainability Is Important Today: The “Big Three” Reasons (pg. 547) 1. Climate Change and Global Warming (pg. 548)
China: The Future (2010 and Beyond) (pg. 526)
Potential Effects of Climate Change and Global Warming (pg. 549)
Advantages and Disadvantages of Doing Business with China (pg. 526)
Facing the Threat of Climate Change: It’s Up to All of Us (pg. 551)
A Final Word on Emerging Markets (pg. 528) STUDENT’S CHOICE: Zambia: On the Threshold of Globalism (pg. 528) How Has the Growth of Worldwide Trade Alliances Affected Globalization? (pg. 529) World Trade Organization (pg. 529) The European Union (pg. 529) The North American Free Trade Agreement (pg. 530) Central America Free Trade Agreement (pg. 531) South American Trade Alliances (pg. 531) Asian Trade Alliances (pg. 532) Association of Southeast Asian Nations (pg. 532) Asia-Pacific Economic Cooperation (pg. 532)
How Do Global Regulators Affect Economies and Social Issues? (pg. 533) Group of Twenty (pg. 533) The World Economic Forum (pg. 533) United Nations Economic and Social Council (pg. 534) What Is HR’s Role in Supporting Global Business? (pg. 535) The Expat Experience: Team-Based Learning (pg. 535) BUSINESS CASE: IBM: Building a Culture of Collaboration (pg. 536) Coaching for Success: Helping Employees and Managers Adjust to Globalization (pg. 536) What Can We All Do to Succeed in a Global Environment? (pg. 537) The Intersection between Personal Ethics, Societal Ethics, and Company Ethics (pg. 537) Competencies That Support Working Abroad (pg. 538)
2. The Call for Business Ethics and Social Responsibility (pg. 551) 3. An Economic Crisis That Swept the World (pg. 552)
What Are the Three Pillars of Sustainability? (pg. 553) The Bhopal Disaster (pg. 553) Tracking Companies That Focus on Sustainability (pg. 555) What Is Environmental Sustainability? (pg. 556) The History of the Conservation and Ecology Movements in the United States (pg. 556) Reducing Greenhouse Gas Emissions: World Leaders Try to Agree on a Course of Action (pg. 558) The Kyoto Protocol (pg. 559) The United Nations Climate Change Conference of 2009 (pg. 561)
Reliance on Fossil Fuels: It Can’t Last Forever (pg. 561) The Green Economy and Green Jobs (pg. 562) Pollution, Waste, and Environmental Sustainability (pg. 563) Plants, Animals, and Environmental Sustainability (pg. 564) What Else Are We Doing to Foster Environmental Sustainability? (pg. 565) What Is Social Sustainability? (pg. 566) BUSINESS CASE: Ashoka: A Proactive Approach to Social Sustainability (pg. 567) Child Labor (pg. 567) Slavery in the World Today (pg. 568) Safety and Risk at Work (pg. 571) What Is Economic Sustainability? (pg. 572) BUSINESS CASE: Generation Investment Management: Al Gore and David Blood (pg. 573)
CONTENTS
STUDENT’S CHOICE: Passion and Partnership: One Road to Economic Sustainability (pg. 574) What Is Corporate Social Responsibility? (pg. 575) PERSPECTIVES: Mary McNevin (pg. 577) How Can Companies Approach Corporate Social Responsibility? (pg. 578) The Obstructionist Approach (pg. 580) The Defensive Approach (pg. 580) The Accommodative Approach (pg. 580) The Proactive Approach (pg. 580) What Is HR’s Role in Sustainability and Corporate Social Responsibility? (pg. 581) Telecommuting (pg. 582) Supporting CSR through Employee Service Programs (pg. 581) What Can We All Do to Support Sustainability and Corporate Social Responsibility? (pg. 584) A Final Word on Sustainability and Corporate Social Responsibility (pg. 585) KEY TERMS (pg. 585) VISUAL SUMMARY (pg. 587)
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Chapter 16: Managing and Leading for Tomorrow: A Focus on Your Future (pg. 590) Why Do “Great Leaders Move Us”? (pg. 592) PERSPECTIVES: Chade-Meng Tan (pg. 592) What Are “Moon Shots for Management”? (pg. 593) How Can You Continue Your Journey to Becoming a Resonant Leader? (pg. 595) What Can You Do to Develop Your Leadership? (pg. 596) Making Leadership Development Fun—and Effective (pg. 596) Exploring Your Vision and What You Want to Change (pg. 597) A Final Word on Managing Yourself (pg. 606) VISUAL SUMMARY (pg. 607) Endnotes (pg. E-1) Index (pg. I-1) Glossary/Index (pg. G-1)