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MANAGEMENT 16E
Stephen
Mary
Lori
P. Robbins San Diego State University Coulter Missouri State University K. Long Baldwin Wallace UniversityTo my wife, Laura Steve
To my husband, Ron Mary
To David, Henry, & Emerson Lori
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Library of Congress Cataloging-in-Publication Data
Library of Congress Control Number: 2023922765
ScoutAutomatedPrintCode
ISBN 10: 0-13-809064-5
ISBN 13: 978-0-13-809064-7
iii
Acknowledgments xxx Part 1 Introduction to Management 1 Chapter 1: Managers and You in the Workplace 1 Chapter 2: The Evolution of Management 21 Chapter 3: Making Decisions 46 Part 1 Management Practice 68 Part 2 Basics of Managing in Today’s Workplace 71 Chapter 4: Influence of the External Environment and the Organization’s Culture 71 Chapter 5: Diversity, Equity, and Inclusion 93 Chapter 6: Managing in a Global Environment 122 Chapter 7: Managing Social Responsibility and Ethics 144 Part 2 Management Practice 170 Part 3 Planning 176 Chapter 8: Foundations of Planning 176 Chapter 9: Managing Strategy 195 Entrepreneurial Ventures Module 219 Part 3 Management Practice 233 Part 4 Organizing 236 Chapter 10: Designing Organizational Structure 236 Chapter 11: Managing Human Resources 262 Chapter 12: Managing Change and Innovation 290 Part 4 Management Practice 318 Part 5 Leading 321 Chapter 13: Understanding and Managing Individual Behavior 321 Chapter 14: Motivating Employees 354 Chapter 15: Managing Groups and Teams 385 Chapter 16: Being an Effective Leader 409 Chapter 17: Managing Communication 441 Part 5 Management Practice 461 Part 6 Controlling 465 Chapter 18: Management Control 465 Planning and Control Techniques Module 493 Managing Operations Module 507 Part 6 Management Practice 518
Glossary 522 • Name Index 534 • Organization Index 547 • Subject Index 550
Preface xxi
Brief Contents
iv Preface xxi Acknowledgments xxx Part 1 Introduction to Management 1 Chapter 1: Managers and You in the Workplace 1 Who Are Managers, and Where Do They Work? 1 Who Is a Manager? 2 Where Do Managers Work? 3 Why Are Managers Important? 4 Management Versus Managers 4 What Is Management? 4 What Do Managers Do? 5 Managerial Challenges Today and into the Future 7 Focus on Remote or Hybrid Work 7 Focus on Technology 8 Focus on Employee Well-Being 8 What Careers Are in Management? 10 What Skills Do Managers Need? 10 Why Study Management? 11 The Universality of Management 11 The Reality of Work 12 Gaining Insights into Life at Work 12 Boxed Features Learning from Failure: Successful Managers Learn from Their Failures 9 Workplace Confidential: Dealing with Organizational Politics 13 Preparing For: Exams/Quizzes 14 Chapter Summary by Learning Objectives 14 Review and Discussion Questions 15 Preparing For: My Career 15 Ethics Dilemma 15 Skill Exercise: Developing Your Skills as a Manager 15 Working Together: Team Exercise 16 My Turn to Be a Manager 16 Case Application 1: Working with Artificial Intelligence 17 Case Application 2: Nike: Taking Customer Focus to a New Level 18 Contents
Chapter 2: The Evolution of Management 21
Chapter 3: Making Decisions 46
Contents v
Early Management 22 Classical Approaches 24 Scientific Management 24 General Administrative Theorists 26 Social-Person Approaches 28 The Early Advocates 29 The Human Relations Movement 31 Behavioral Science Theorists 32 Quantitative Approach 33 Putting the Quantitative Approach into Perspective 34 Systems and Contingency Approaches 34 Systems Approach 34 Contingency Approach 35 Recent History 36 The New Industrial Revolution: Technology and Computerization 36 Globalization 37 Sustainability and the ESG Movement 37 Boxed Features Learning from Failure: Learning from Failing Start-up Businesses 29 Workplace Confidential: Looking Back to Move Forward 38 Preparing For: Exams/Quizzes 39 Chapter Summary by Learning Objectives 39 Review and Discussion Questions 41 Preparing For: My Career 41 Ethics Dilemma 41 Skill Exercise: Developing Your Skills as a Manager 41 Working Together: Team Exercise 42 My Turn to Be a Manager 42 Case Application 1: Uber’s CEO Gets Behind the Wheel 42 Case Application 2: Managers Still Need to Be Data-Driven 43
The Decision-Making Process 46 Step 1: Identify a Problem 47 Step 2: Identify Decision Criteria 47 Step 3: Allocate Weights to the Criteria 47 Step 4: Develop Alternatives 48 Step 5: Analyze Alternatives 48 Step 6: Select an Alternative 48 Step 7: Implement the Alternative 48 Step 8: Evaluate Decision Effectiveness 49 Approaches to Decision Making 49 Rationality 50 Bounded Rationality 50
vi Contents Intuition 51 Evidence-Based Management 52 Types of Decisions 52 Structured Problems and Programmed Decisions 52 Unstructured Problems and Nonprogrammed Decisions 53 Comparing Decision Types 54 Decision-Making Styles 54 Decision-Making Biases and Errors 56 Using Technology to Improve Decision Making 58 Big Data 59 Artificial Intelligence 59 Machine Learning and Analytics 60 Technology and Human Judgment 60 Boxed Features Learning from Failure: James Dyson: A Man of a Thousand Failures 55 Workplace Confidential: Making Good Decisions 58 Preparing For: Exams/Quizzes 61 Chapter Summary by Learning Objectives 61 Review and Discussion Questions 62 Preparing For: My Career 62 Ethics Dilemma 62 Skills Exercise: Select the Best Alternative Decision-Making Skills 63 Working Together: Team Exercise 63 My Turn to Be a Manager 63 Case Application 1: Making Decisions with Bad Data 64 Case Application 2: A Major League Baseball Rule Change 65 Part 1: Management Practice 68 Continuing Case: Starbucks—Introduction 68 Practice Your Data Analysis Skills 70 Part 2 Basics of Managing in Today’s Workplace 71 Chapter 4: Influence of the External Environment and the Organization’s Culture 71 The Manager: Omnipotent or Symbolic? 71 The Omnipotent View 72 The Symbolic View 72 Reality Suggests a Synthesis 72 The External Environment: Constraints and Challenges 73 Defining the Environment and Environmental Uncertainty 73 Monitoring the General Environment 74 The Specific Environment 75 Managing the Environment 77
Contents vii Organizational Culture: Guiding Employee Behavior 78 What Is Organizational Culture? 78 Strong Cultures 79 Where Culture Comes From and How It Continues 80 How Culture Is Sustained 81 Remote Work and Culture 84 How Culture Affects Managers 85 Boxed Features It’s Your Career: Reading an Organization’s Culture: Find One That Is a Right Fit for You 82 Workplace Confidential: Adjusting to a New Job or Work Team 83 Preparing For: Exams/Quizzes 86 Chapter Summary by Learning Objectives 86 Review and Discussion Questions 87 Preparing For: My Career 87 Ethics Dilemma 87 Skill Exercise: Developing Your Environmental Scanning Skill 87 Working Together: Team Exercise 88 My Turn to Be a Manager 88 Case Application 1: Environmental Uncertainty at HBO 89 Case Application 2: Organizational Culture at Vice Media 90 Chapter 5: Diversity, Equity, and Inclusion 93 Diversity, Equity, and Inclusion in the Workplace 94 What Are Diversity, Equity, and Inclusion in the Workplace? 94 Benefits of a Diverse, Equitable, and Inclusive Workplace 95 The Changing Workplace 97 Characteristics of the US Population 97 What About Global Workforce Changes? 99 Types of Workplace Diversity 100 Age 100 Gender 101 Race and Ethnicity 102 Disabilities 102 Religion 103 LGBTQ+: Sexual Orientation and Gender Identity 104 Socioeconomic Status 104 Challenges in Managing Diversity 105 Personal Bias 105 Glass Ceiling 105 Pay Inequities 107 Workplace Diversity, Equity, and Inclusion Initiatives 107 Top Management Commitment to DEI 108 Mentoring 108 DEI Training 108 Employee Resource Groups 110 Measuring and Reporting on DEI Initiatives 110
viii Contents Boxed Features Workplace Confidential: Working in a Diverse Environment 98 Learning from Failure: Denny’s Answer to Its Diversity Problem 109 Preparing For: Exams/Quizzes 111 Chapter Summary by Learning Objectives 111 Review and Discussion Questions 112 Preparing For: My Career 112 Ethics Dilemma 112 Skills Exercise: Developing Your Valuing Diversity Skill 113 Working Together: Team Exercise 114 My Turn to Be a Manager 114 Case Application 1: Gusto: Making a Difference in Gender Diversity 115 Case Application 2: Bring in Diversity . . . and Then What? 116 Chapter 6: Managing in a Global Environment 122 Clarifying Terminology 122 A Brief History of Globalization 123 The Case For and Against Globalization 126 The Win-Win Argument 126 The Downside of Globalization 127 Globalization Today 128 What Does This Mean for Managers? 128 Different Types of International Organizations 128 How Organizations Go International 129 Managing in a Global Environment 131 The Political/Legal Environment 131 The Economic Environment 131 The Cultural Environment 132 Boxed Features It’s Your Career: Developing Your Global Perspective—Working with People from Other Cultures 133 Workplace Confidential: Succeeding in a Remote Job 136 Preparing For: Exams/Quizzes 137 Chapter Summary by Learning Objectives 137 Review and Discussion Questions 138 Preparing For: My Career 139 Ethics Dilemma 139 Skills Exercise: Developing Your Collaboration Skill 139 Working Together: Team Exercise 139 My Turn to Be a Manager 140 Case Application 1: Glencore: Conducting Business in Countries Where Others Might Not 140 Case Application 2: Lululemon Power of Three × 2 Growth Strategy 141 Chapter 7: Managing Social Responsibility and Ethics 144 What Is Social Responsibility? 145 Two Opposing Views 145 From Obligations to Responsiveness to Responsibility 146
Contents ix Social Responsibility and Economic Performance 148 Corporate Philanthropy 148 Green Management and Environmental Sustainability 149 How Organizations Go Green 149 Reporting Social Responsibility and Sustainability 150 ESG Reporting 150 Managers and Ethical Behavior 151 Factors That Determine Ethical and Unethical Behavior 152 Ethics in an International Context 155 Artificial Intelligence and Ethics 156 Encouraging Ethical Behavior 157 Employee Selection 157 Codes of Ethics 158 Leadership at the Top 158 Job Goals and Performance Appraisal 158 Ethics Training 158 Ethics Officer or Committee 159 Protecting Whistle-Blowers 159 Boxed Features Learning from Failure: From Greenwashing to Electric Cars 157 Workplace Confidential: Balancing Work and Personal Life 160 Preparing For: Exams/Quizzes 161 Chapter Summary by Learning Objectives 161 Review and Discussion Questions 163 Preparing For: My Career 163 Ethics Dilemma 163 Skills Exercise: Developing Your Trust Building Skill 163 Working Together: Team Exercise 164 My Turn to Be a Manager 164 Case Application 1: Chobani: A Different Kind of Yogurt Company 165 Case Application 2: Every Kid Fed: Addressing Childhood Hunger Through Social Entrepreneurship 166 Part 2: Management Practice 170 Continuing Case: Starbucks—Basics of Managing in Today’s Workplace 170 Practice Your Data Analysis Skills 174 Part 3 Planning 176 Chapter 8: Foundations of Planning 176 The What and Why of Planning 176 What Is Planning? 176 Why Do Managers Plan? 177 Planning and Performance 177 Types of Plans 178 Strategic versus Operational Plans 178 Short-Term versus Long-Term Plans 178
x Contents Specific versus Directional Plans 179 Single-Use versus Standing Plans 179 Static versus Scenario Plans 180 Contingency Factors in Planning 180 Level in the Organization 180 Degree of Environmental Uncertainty 181 Length of Future Commitments 181 Objectives: The Foundation of Planning 182 Stated versus Real Objectives 182 Traditional Objective Setting 183 Management by Objectives 184 Contemporary Issues in Planning 185 Environmental Scanning 185 Using Artificial Intelligence to Support Planning 187 Boxed Features It’s Your Career: Planning Your Time 181 Workplace Confidential: When You Face a Lack of Clear Directions 186 Preparing For: Exams/Quizzes 188 Chapter Summary by Learning Objectives 188 Review and Discussion Questions 189 Preparing For: My Career 189 Ethics Dilemma 189 Skills Exercise: Making a To-Do List That Works and Using It 190 Working Together: Team Exercise 190 My Turn to Be a Manager 191 Case Application 1: Johnson Controls Using OpenBlue to Reach Net Zero 191 Case Application 2: Living Up to Goals at Tesla 192
What Is Strategic Management, and Why Is It Important? 196 Defining Strategic Management 196 Why Is Strategic Management Important? 196 Supporting the Strategic Management Process 197 The Strategic Management Process 198 Step 1: Start with Purpose: Identifying the Organization’s Current Mission 198 Step 2: SWOT Analysis 198 Step 3: Formulating Strategies 200 Step 4: Implementing Strategies 200 Step 5: Evaluating Results 200 Corporate Strategies 201 What Is Corporate Strategy? 201 What Are the Types of Corporate Strategy? 202 How Are Corporate Strategies Managed? 204 Competitive Strategies 205 The Role of Competitive Advantage 205 Sustaining Competitive Advantage 205 Examples of Differentiation Strategies 207
Chapter 9: Managing Strategy 195
Contents xi Boxed Features It’s Your Career: Learning Your Strengths and Weaknesses 201 Workplace Confidential: Developing a Career Strategy 203 Preparing For: Exams/Quizzes 210 Chapter Summary by Learning Objectives 210 Review and Discussion Questions 211 Preparing For: My Career 211 Ethics Dilemma 211 Skills Exercise: Developing Your Business Planning Skill 211 Working Together: Team Exercise 213 My Turn to Be a Manager 213 Case Application 1: Nvidia’s Gaming and AI Strategy 213 Case Application 2: Saving Lives Through Strategy at RapidSOS 214 Entrepreneurial Ventures Module 219 The Context of Entrepreneurship 219 What Is Entrepreneurship? 219 Why Is Entrepreneurship Important? 219 The Entrepreneurial Process 220 What Do Entrepreneurs Do? 220 Social Entrepreneurship 221 Side Hustles: A Hybrid Path to Entrepreneurship 221 Start-Up and Planning Issues 222 Identifying Opportunities 222 Researching the Venture’s Feasibility: Ideas 222 Researching the Venture’s Feasibility: Competitors 223 Researching the Venture’s Feasibility: Financing 223 Planning: Developing a Business Model 224 Organizing Issues 225 Legal Forms of Organization 225 Organizational Design and Structure 227 Human Resource Management 228 Leading Issues 228 Entrepreneurial Mindset 228 Personality Characteristics of Entrepreneurs 228 The Entrepreneur as Leader 229 Control Issues 230 Potential Control Problems and Actions 230 Exiting the Venture 230 Review and Discussion Questions 231 Part 3: Management Practice 233 Continuing Case: Starbucks—Planning 233 Practice Your Data Analysis Skills 234
xii Contents Part 4 Organizing 236
Six Elements of Organizational Design 237 Work Specialization 237 Departmentalization 238 Chain of Command 240 Span of Control 240 Centralization and Decentralization 242 Formalization 243 Mechanistic and Organic Structures 244 Contingency Factors Affecting Structural Choice 245 Strategy and Structure 245 Size and Structure 245 Technology and Structure 245 Environmental Uncertainty and Structure 246 Traditional Organizational Design Options 246 Simple Structure 247 Functional Structure 247 Divisional Structure 247 Organizing for Flexibility in the Twenty-First Century 248 Team Structures 248 Matrix and Project Structures 248 The Virtual Organization 249 Offering Flexibility for Today’s Workforce 249 Remote Work 250 Flexible Work Schedules 250 The Contingent Workforce 252 Implications for Managers 253 Boxed Features Workplace Confidential: Coping with Multiple Bosses 241 Learning from Failure: Return to Office? Workers Say No Way! 251 Preparing For: Exams/Quizzes 253 Chapter Summary by Learning Objectives 253 Review and Discussion Questions 254 Preparing For: My Career 255 Ethics Dilemma 255 Skills Exercise: Developing Your Acquiring Power Skill 255 Working Together: Team Exercise 256 My Turn to Be a Manager 256 Case Application 1: Making a Flat Organization Work at Punchkick 257 Case Application 2: Life as a Digital Nomad in Foreign Cities 258 Chapter 11: Managing Human Resources 262 Why Managing Human Resources Is Important 262 The Human Resource Management Process 263
Chapter 10: Designing Organizational Structure 236
Chapter 12: Managing Change and Innovation 290
Contents xiii External Factors That Affect the Human Resource Management Process 264 The Economy 264 Laws and Rulings 264 Demographics 266 Social and Cultural Factors 266 Labor Unions 266 Identifying and Selecting Competent Employees 267 Human Resource Planning 267 Recruitment and Decruitment 268 Selection 270 Technology in the Hiring Process 272 Training and Developing Employees 273 Orientation and Socialization 273 Employee Training 274 Developing Employees 276 Retaining Competent, High-Performing Employees 276 Performance Feedback 277 Compensation and Benefits 277 Boxed Features Workplace Confidential: Job Search 269 It’s Your Career: Nailing the Behavior-Based Interview 280 Preparing For: Exams/Quizzes 281 Chapter Summary by Learning Objectives 281 Review and Discussion Questions 282 Preparing For: My Career 282 Ethics Dilemma 282 Skills Exercise: Developing Your Interviewing Skills 283 Working Together: Team Exercise 284 My Turn to Be a Manager 284 Case Application 1: Employees with Side Hustles: It’s No Secret 285 Case Application 2: Keeping Dealership Sales Staff from Leaving at Nissan 286
The Case for Change 291 Living with VUCA 291 External Forces for Change 291 Internal Forces for Change 292 The Change Process 293 The Calm Waters Metaphor 294 The White-Water Rapids Metaphor 294 Areas of Change 295 Strategy 295 Structure 296 Culture 296 Technology 297 People 297 Managing Change 298 Why Do People Resist Change? 298 Techniques for Reducing Resistance to Change 299