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PREFACE

An innovative and very contemporary way of teaching management. —Douglas M. McCabe, Georgetown University I think your using the systems approach to critical thinking is a great thing. Getting students thinking critically from a systems perspective and looking at the intended and unintended consequences of decisions is much needed. —Kenneth J. Harris, Indiana University Southeast Writing style was superb—more interesting and involving that any principles of management textbook I have read. It just draws the reader in, like a well-written novel, yet imparts management key principles that all management texts wish to do. —Verl Anderson, Dixie State College

W

e would like to offer a warm welcome to instructors and students to Management. In a rapidly changing business world, this is an exhilarating time for 21st-century managers! Globalization and technological innovation has revolutionized every aspect of our daily lives, changing the way we work and learn. Today’s managers need to be equipped with the right skills to deal with the growing number of challenges facing them within this uncertain economic climate. Dealing with the competition, coping with ethical dilemmas, identifying and hiring talent, managing diversity, building sustainability, and adapting to the latest technology are just a few of the many challenges that today’s managers face. This book is designed to give you a better idea of what management really is, who the most successful managers are, how to become a great manager, and how to think critically. It is our hope that this book will help you prepare you for these challenges and support you in your future careers as managers. We have been told that it’s not very often that a book reviews the way this one has, and we have been humbled and honored by the feedback we have received as we wrote and revised this text. From the start of this project, professors told us that we were on to something. Our critical thinking approach, novel style of writing, systems thinking emphasis, and coverage of Positive Psychology got their attention, and they were sure that it would get their students’ attention, too. They told us that it was truly different from any introductory management book they had used or reviewed before. And they said that a new and unique approach to teaching a management for future managers and anyone who will ever work in xi

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an organization was critical, exciting, and sorely needed. They told us they are excited to use our book and think their students will be, too! As with any endeavor, it started with an idea—to write a book that would introduce students to management using a critical thinking approach and a storytelling style. We put together a prospectus, wrote a few chapters, and started talking to friends, colleagues, coworkers, entrepreneurs, small business owners, chief executive officers (CEOs), and chief financial officers (CFOs), and gathered practical insights into the practice of management. We heard about their success stories, failures, and lessons learned, and we incorporated them, along with our own experiences teaching and working, into the plan for this book and the teaching and learning resources that accompany it. Throughout the writing and development of the manuscript, we listened to our customers—professors and students (over 200 in total!)—through reviews, emails, phone calls, and virtual and in-person focus groups. We shared our message and goals for the book with all these people and have been encouraged and inspired by everyone who has been part of our journey. We are so grateful for all the help we received from this feedback, and we thank everyone who contributed their comments. This would not be the book it is without you!

Philosophy Based on extensive research, along with our own experiences of teaching, we have found that traditional management texts centered purely on theory-based methods of learning were not stimulating enough for our students, nor were they sufficient to prepare students for the real-life demands of a continuously evolving business environment. We think that a text that promoted more active learning and engagement with the realities of management would encourage students to think like managers, rather than just learning about them. This is why we have developed a new text based on a critical thinking approach, to prepare future managers for the challenges of business. We believe that by learning to think critically, students will play a more active role in the learning process, engage with the content, and really understand what it is like to be a manager. And our ideas are supported by a national market segmentation survey that Wiley conducted with principles of management professors. Over 80 percent of those surveyed said the number one thing that students need to learn is how to think critically. Our goal is to show you that the study of management is exciting and stimulating. To illustrate this, we have included several management stories, based on real-life scenarios, that describe epic failures, risings and fallings, overnight successes, poetic justices, dilemmas, and plain, hardworking people that find meaningful ways to make a difference. We believe that a storytelling approach inspires students to think critically by putting themselves in the place of a manager to resolve management dilemmas.

Pedagogy The content of Management is based on sound pedagogical foundations that aim to support students in learning quickly and efficiently. As educators, our goals are to:

• Help students realize that management is extremely relevant to each and every one of them . . . that management begins with each of them . . . that before we can manage others, we have to learn to manage ourselves, and that, ultimately, management is relevant to us all. • Challenge our students to embrace all types of organizations, from start-ups to large corporations, and to understand that effective management is essential for all employees in every type of organization. • Improve our students’ critical thinking skills. Why? Because research shows that employers want and value employees who can think critically. • Enhance our students’ understanding of current organizational issues that affect businesses, society, and individuals. • Inspire lifelong learning about management that stretches beyond the duration of a single management course. xii

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Our approach incorporates a balance between the following characteristics:

• Management theory and real life experience. • Historical teachings and current trends and theories. • Self-management and managing an organization. • Providing information and allowing students to formulate their own questions. • The four functions of management. Critical Thinking Increasingly used in business as a problem-solving tool, the critical thinking approach is a powerful analytical method that helps managers to consider intended and unintended consequences of behaviors on their teams, organizations, and communities. Organizations need managers who think independently, without judgment and bias; predict patterns of behaviors and processes; and ask the right questions: “How?” and “Why?” versus just “What?” in order to make effective and thoughtful decisions. To support the teaching of critical thinking skills, we draw from several management theories such as systems thinking and Positive Psychology, providing students with systems archetypes, research, and management stories to illustrate the relationship between the facets of each theory. The management stories are based on real-life case studies and scenarios which we feel really help to demonstrate the application of critical thinking. Some of the characters you will meet include Chris Heppler, a new manager from the Dolphin Resort and Hotel, whose mission is to save a family business from bankruptcy; newly appointed chief of police Robin Richardson, who sets out to revolutionize the Metropolitan Police Department (MPD) in Washington D.C.; Julian Wales, group leader of Upstream Fisheries, whose goal is to increase productivity and motivation through leadership; and university friends Katy Johnson, Fred Arters, and Lisa Fang, who leave their respective jobs to begin a new entrepreneurial venture together. We feel strongly that once the art of critical thinking is mastered, it can become a very powerful tool that can be applied to many different scenarios. Take the issue of sustainability, for example. Events of the past few decades have resulted in increased demand for corporate accountability and social responsibility, even as managers are realizing the benefits of finding new ways to balance the needs of stockholders, employees, and communities. We believe that through critical thinking, young managers can contribute to building a more sustainable and responsible global marketplace by making logical decisions based on evidence and reason.

Content and Organization Management incorporates a learning model based on critical thinking that captures the imagination of the students, transporting them into real-life work dilemmas to better prepare them for their future careers. The chapter content is current, timely, and structured to promote flow and accessibility. Part One: Introduction Two chapters introduce management, beginning with the challenges facing today’s managers, followed by the origins of management. They are Chapter 1, “Management in the 21st Century,” and Chapter 2, “The Evolution of Management.” Part Two: Sustaining: A Balanced Approach to Management Four chapters discuss the environment within which managers work, in the context of critical thinking and sustainability. They are Chapter 3, “Critical Thinking for Managers,” Chapter 4, “Organizations and Change Management,” Chapter 5, “Diversity in a Global Economy,” and Chapter 6, “Ethics and Social Responsibility.” Part Three: Planning Three chapters cover decision making, goal setting, and strategy design, all within a framework of one comprehensive management story. They are Chapter 7, “Making Better Decisions,” Chapter 8, “Setting Goals,” and Chapter 9, “Designing Strategies.” Preface

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Part Four: Organizing Three chapters explore how managers organize structures, individuals, and teams, through a new management story. They are Chapter 10, “Organizational Structures,” Chapter 11, “The Human Side of Management,” and Chapter 12, “Managing Team Performance.” Part Five: Leading Three chapters illustrate leadership within another original management story. They are Chapter 13, “Managers as Leaders,” Chapter 14, “Understanding Individual Behavior,” and Chapter 15, “Communicating and Motivating Others.” Part Six: Controlling Two chapters discuss how managers exercise controls within a business environment, as portrayed by another innovative management story. They are Chapter 16, “Information and Operations,” and Chapter 17, “Performance Development.” Part Seven: The Future of Management The final chapter, “Entrepreneurship and Innovation,” combines many elements of the previous chapters and follows the journey of a group of entrepreneurs and the challenges they face along the way. Management Stories For this book, we have created several rich, extended management stories that enable students to engage critically with the exciting complexities of the real world. These narratives serve two key purposes: 1) offer fully imagined characters and relationships that reflect actual challenges and opportunities that managers encounter, and 2) provide sufficiently rich contexts to practice critical thinking skills usefully, in ways that mimic actual workplace dynamics. We firmly believe that a sustained, compelling narrative helps students move beyond the mere memorization of terms and concepts to a critical understanding that lasts beyond the final exam. Voices of Management In the “Voices of Management” feature, we use interviews with real-life managers and leaders to augment the learning and storytelling style for each chapter. These interviews are researched or conducted during the development of the chapter, so as to increase the relevance of each manager’s perspectives. Research @ Work In the “Research @ Work” feature, we balance key research in the field of management with current topics of interest to practicing managers by synthesizing leading academic journal research. Each “Research @ Work” box is accompanied by a “Critical Thinking in the Classroom” exercise to further promote active engagement. Chapter Exercises We have designed exercises and examples that activate management principles for college students to build valuable experience and increase skills through decision-oriented challenges that relate specifically to the business environment and student organizations. Students will have unparalleled access to management and leadership tools and resources that real-world professionals use to increase personal and team performance. Key Terms Throughout the chapter, key terms are defined within the narrative and highlighted where they first appear. The definitions of each key term are repeated in the “Additional Resources” section at the end of each chapter. In Review and Self-Tests For each chapter, we include traditional chapter review materials: a recap of the chapter content, organized by learning objective, and a self-test that includes multiple-choice, fillin-the-blank, and short-answer questions, with an answer key. xiv

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Teaching and Learning Resources [WF2] Instructor’s Manual The Instructor’s Manual, written by Jeffery Houghton, offers helpful teaching ideas. It has advice on course development, sample assignments, and recommended activities. It also offers chapter-by-chapter text highlights, learning objectives, lecture outlines, class exercises, lecture notes, and tips on using cases. Because the Instruc[WF3] tor’s Manual was written by one of the textbook’s authors, it matches perfectly with the book. Test Bank This comprehensive Test Bank, written by Jeffery Houghton and available on the instructor portion of the Management 1e website, includes true/false, multiple-choice, and short-essay questions that vary in degree of difficulty. All the questions are tagged to learning objectives and difficulty. The Respondus Test Bank allows instructors to modify and add questions to the master bank and to customize their exams. Because the Test Bank was [WF4] written by one of the textbook’s authors, professors can be assured that it is consistent with the structure and style of the book. Practice Quizzes This online study guide, with quizzes of varying levels of difficulty written by Jeffery Houghton, helps students evaluate their progress through each chapter. It is available on the student portion of the Management 1e website. Because the Practice Quiz[WF5] zes were written by one of the textbook’s authors, they match with each chapter of the book. Pre- and Post-Lecture Quizzes Included in WileyPLUS, the Pre- and Post-Lecture Quizzes focus on the key terms and concepts. They can be used as stand-alone quizzes or in combination to evaluate students’ progress before and after lectures. PowerPoint Presentation Slides This robust set of Microsoft PowerPoint slides can be accessed on the instructor portion of the Management 1e website. Lecture notes accompany each slide. Management in Action Videos One video per chapter presents the major themes of each chapter, both with the authors of the textbook and with industry insiders. Lecture Launcher Videos Short video clips developed from CBS News source materials provide an excellent starting point for lectures or for general class discussion. Teaching Notes are available, with video summaries and quiz and discussion questions. Personal Response System The Personal Response System (PRS) questions for each chapter are designed to spark classroom discussion and debate. For more information on PRS, please contact your local Wiley sales representative.

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s t n e m g d e l w o n ck

A

The authors would like to thank all those people who have supported our efforts in writing this book. There are a plethora of people who contributed to making this text a reality. First, we’d like to thank Emma Murray for her amazing talents, as she served as the best content editor an author team could ever have. We also want to thank Shelley Smith for her aboveand-beyond efforts to keep us on track, as well as keeping the book afloat during setbacks throughout the writing process. We’d also like to thank our respective deans, Amy Hillman at Arizona State (WPC Business School) and Jose “Zito” Sartarelli at West Virginia University’s College of Business & Economics, for their support for this project. We’d like to thank our department heads (Gerry Keim, Arizona State, and Joyce Heames, West Virginia University) for their encouragement as well. In addition, we would like to thank the fine folks at Wiley for making this book a reality. Our dream of creating an innovative management textbook and ancillary package has become a reality due to our amazing, energetic and encouraging executive editor, Lise Johnson. She has been a champion for this book and our ideas (and there were many!), every step of the way. We can’t thank her enough for her dedication and support. Susan McLaughlin, our talented developmental editor, pushed us to explore new ideas and kept us on track to write the best book possible. Brian Baker, our project editor, made sure that everything that needed to happen did indeed happen, and kept all of us on track. We appreciate all of his hard work, creativity, and attention to detail. Designer Tom Nery came up with an elegant and contemporary look for this book that visually brings to life our ideas more than we could have ever imagined. Valerie Vargas and Edward J. Dionne, our organized and efficient production editors, kept us on track. Jackie Hughes, editorial assistant, took care of a myriad of tasks during the development of the manuscript with an energy and enthusiasm that was inspiring. Kelly Simmons, our marketing manager, did a great job coordinating the promotion of our book, from organizing focus groups to overseeing all of the professor outreach efforts. We would like to thank our families for “living without us” as we worked diligently on completing this textbook.

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Additionally, there are a number of folks at Wiley that helped make this book happen, including: George Hoffman, Vice President and Executive Publisher Yana Mermel, Editorial Operations Manager Amy Scholz, Director of Marketing Marissa Carroll, Marketing Assistant Dorothy Sinclair, Senior Content Manager

Allison Morris, Senior Product Designer Elena Santa Maria, Senior Media Specialist Mary Ann Price, Senior Photo Researcher Harry Nolan, Design Director Maria Danzilo Rhea Siegel [WF6]

We would also like to thank the following colleagues, who gave invaluable feedback at various stages of this book with their constructive feedback: Manuscript Reviewers Ryan Atkins, University of Georgia Larry Able, Johnson County Community College Allen Amason, University of Georgia Lydia Anderson, Fresno City College Verl Anderson, Dixie State College Randall Andre, Winona State University Bonnie Bachman, Missouri University of Science and Technology Reuel Barksdale, Columbus State Community College William Becker, Texas Christian University Ellen Benowitz, Mercer County Community College Tony Bledsoe, Meredith College Queen Esther Booker, Minnesota State University Paula Buchanan, Jacksonville State University Harry Candler, Valencia College Diana Carmel, Golden West College Glen Chapuis, St. Charles Community College Frank Christopian, Brevard Community College Gary Corona, Florida State College Brad Cox, Midlands Technical College Suzanne Crampton, Grand Valley State University Tom Craven, York College of Pennsylvania Joseph DeFilippe, Suffolk County Community College Gregory Dickens, Sam Houston State University Michael Drafke, College of DuPage Charlene Dykman, University of St. Thomas Bob Eliason, James Madison University Cassandra Elrod, Missouri University of Science and Technology Rodney Erakovich, Texas Wesleyan University David Feller, Brevard Community College Mark Fenton, University of Wisconsin Janice Gates, Western Illinois University Terry Girdon, Pennsylvania College of Technology Michael Gordon, Rutgers State University Susan Greer, Horry-Georgetown Technical College Kenneth Harris, Indiana University Southeast Karen H. Hawkins, Miami Dade College Linda Hefferin, Elgin Community College Sherman Herbert, Long Island University Nathan Himmelstein, Essex County College Peter Holland, Napa Valley College Phil Holleran, Mitchell Community College Jenni Hunt, Southern Illinois University Chip Izard, Richland College

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David Jalajas, Long Island University Janice Karlen, CUNY, LaGuardia Community College David Kalicharan, Nova Southeastern University George Kelley, Eerie Community College Angela Kiser, University of the Incarnate Word Susan Kowalewski, D’Youville College John Leblanc, Cedarville University Beverly Little, Horry-Georgetown Technical College Emilio Lopez, Eastfield College Denise Lorenz, Wake Technical Community College Richards Lynn, Johnson County Community College Ralph Marra, Stony Brook University Daniel Marrone, Farmingdale State College William Martello, St. Edwards University David Matthews, SUNY Adirondack Jeanne McNett, Assumption College Catherine Michael, St. Edwards University Amy Mickel, California State University Elouise Mintz, St. Louis University Susan Monaco, Molloy College John Myers, Jefferson College Anthony Narsing, Middle Georgia State College Steven Nichols, Metropolitan Community College Lisa Nieman, Indiana Wesleyan University Lizzie Ngwenya-Scoburgh, University of Cincinnati John Okpara, Bloomsburg University Nathan Oliver, University of Alabama Dianna Parker, Ozarks Technical Community College Nicholas Peppes, St. Louis Community College Alan Platt, Florida Gulf Coast University Patrizia Porrini, Long Island University Tracy Porter, Cleveland State University Jessica Reyes, Temple College David Ruderman, University of Colorado Paul Salada, Fayetteville Technical Community College Trent Salvaggio, College of Charleston Kelly Schultz, University of Wisconsin Michael Shaner, St. Louis University Sarah Shepler, Ivy Tech Terre Haute Marc Siegall, California State University Lisa Slevitch, Oklahoma State University

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Andrea Smith-Hunter, Siena College Ann Snell, Tulane University Rieann Spence-Gale, Northern Virginia Community College Jeremy Stafford, University of North Alabama Alice Stewart, North Carolina A&T State University Charlotte Sutton, Auburn University James Swenson, Minnesota State University Marguerite Teubner, Nassau Community College

Ronald Thomas, Oakton Community College Itoe Valentine, Albany Technical College Maria Vitale, Brandman University Anita Vorreyer, Georgia Gwinnett College Robert Waris, University of Missouri Dennis Williams, Pennsylvania College of Technology Dilek Yunlu, Northern Illinois University Mary Zellmer-Bruhn, University of Minnesota

Message Testing Verl Anderson, Dixie State College Lydia Anderson, Fresno City College Bonnie Bachman, Missouri University of Science and Technology Karen Bangs, Cal Poly San Luis Obispo William Becker, Texas Christian University Ellen Benowitz, Mercer County Community College Edward Bewayo, Montclair State University Tony Bledsoe, Meredith College Melvin Blumberg, Penn State Glen Chapuis, Saint Charles Community College Frank Christopian, Brevard Community College and Rollins College Thomas Craven, York College of Pennsylvania Paul Croitoru, Wilbur Wright College Joseph DeFilippe, Suffolk County Community College Michael Drafke, College of DuPage Cassandra Elrod, Missouri University of Science and Technology Raymond Gibney, Penn State Terry Girdon, Pennsylvania College of Technology Nathan Himelstein, Essex County College Peter Holland, Napa Valley College David Jalajas, Long Island University Susan Kowalewski, D’Youville College Emilio Lopez, Eastfield College

Denise Lorenz, Wake Technical Community College William Martello, St. Edward’s University Catherine Michael, St. Edward’s University Larry Michaelsen, University of Central Missouri Elouise Mintz, Saint Louis University Susan Monaco, Molloy College Diane Nelson, Washington State University Lizzie Ngwenya-Scoburgh, University of Cincinnati Lisa Nieman, Indiana Wesleyan University John Okpara, Bloomsburg University of Pennsylvania Nicholas Peppes, St. Louis Community College David Ruderman, University of Colorado Denver Mike Shaner, Saint Louis University Sarah Shepler, Ivy Tech Marc Siegall, California State University Lisa Slevitch, Oklahoma State University Paul Smith, Missouri University of Science and Technology Andrea Smith-Hunter, Siena College Ann Snell, Tulane University Marguerite Teubner, Nassau Community College Ronald Thomas, Oakton Community College Itoe Valentine, Albany Technical College Tim Waid, University of Missouri Dennis Williams, Pennsylvania College of Technology

Focus Group Participants Elsa Anaya, Palo Alto College Harry Bernstein, Essex County College Kenneth Harris, Indiana University Southeast Thomas Mobley, Miami University Middletown Miles Smayling, Minnesota State University Laurie Taylor-Hamm, California State University

Darrell Coleman, University of Utah Randy Kidd, Longview Community College David Wilhelm, Metropolitan Community College Xia Zhao, California State University Mitch Zimmer, Penn State

Principles of Management Summit Attendees Bob Eliason, James Madison University Michael Gordon, Rutgers University Harrychand Kalicharan, University of Maryland University College Nathan Oliver, University of Alabama

Paul Salada, Fayetteville Tech Community College Trent Salvaggio, College of Charleston Jeremy Stafford, University of North Alabama Alice Stewart, North Carolina A&T University Charlotte Sutton, Auburn University

Principles of Management Advisory Board Members Dean Cleavenger, University of Central Florida William Furrell, Moorpark College Melanie Hilburn, Lonestar College Nathan Himelstein, Essex County College Moronke Oke, Grand Canyon Unive­rsity

Paul Salada, Fayetteville Tech Community College Mike Shaner, St. Louis University Marc Siegall, California State University Tim Waid, University of Missouri Sheila Webber, Suffolk University

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Private Industry Advisory Board Ken Kovach, B. F. Saul Company Kim Drumgo, Blue Cross Blue Shield

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Keith Smith, Riverside Health Long-Term Division Chuck Jones, Thundermist Community Centers

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Neck: Preface