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Brian K» Williams

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contentspart IIntroduction

Chapter One

The Exceptional Manager: What YouDo, How You Do It 2

1.1 Management: What It Is, What Its BenefitsAre 4

The Art of Management Defined 4

Why Organizations Value Managers: The Multiplier

Effect 5

Financial Rewards of Being a Star Manager 6

What Are the Rewards of Studying & PracticingManagement? 6

1.2 Six Challenges to Being a Star Manager 8Challenge #1: Managing for Competitive Advantage-

Staying Ahead of Rivals 8

Challenge #2: Managing for Diversity—The FutureWon't Resemble the Past 10

Challenge #3: Managing for Globalization—TheExpanding Management Universe 10

Challenge #4: Managing for Information

Technology 10

Challenge #5: Managing for Ethical Standards II

Challenge #6: Managing for Your Own Happiness &Life Goals 12

1.3 What Managers Do: The Four PrincipalFunctions 13

Planning: Discussed in Part 3 of This Book 13

Organizing: Discussed in Part 4 of This Book 14

Leading: Discussed in Part 5 of This Book 14

Controlling: Discussed in Part 6 of This Book 14

1.4 Pyramid Power: Levels & Areas ofManagement 15 ,

The Traditional Management Pyramid: Levels &

Areas 15

Three Levels of Management. 15

Areas of Management: Functional Managers versusGeneral Managers 17

Managers for Three Types of Organizations: For-Profit,

Nonprofit, Mutual-Benefit 18

1.5 Roles Managers Must Play Successfully 19

The Manager's Roles: Mintzberg's Useful Findings 19

Three Types of Managerial Roles 20

1.6 The Entrepreneurial Spirit 23Entrepreneurship Defined: Taking Risks in Pursuit of

Opportunity 24

1.7 The Skills Star Managers Need 27

I. Technical Skills—The Ability to Perform aSpecific Job 27

2. Conceptual Skills—The Ability to ThinkAnalytically 27

3. Human Skills—The Ability to Interact Well withPeople 27

The Most Valued Traits in Managers 28

' Key Terms Used in This Chapter 32

Summary 32

Management in Action 33

Self-Assessment 35

Ethical Dilemma 36

Chapter Two

Management Theory: EssentialBackground for the SuccessfulManager 38

2.1 Evolving Viewpoints: How We Got to Today'sManagement Outlook 4 0

Evidence-Based Management 40

Two Overarching Perspectives about

Management 41

Five Practical Reasons for Studying ThisChapter 41

2.2 Classical Viewpoint: Scientific & AdministrativeManagement 42

Scientific Management: Pioneered by Taylor & theGilbreths 42

Administrative Management: Pioneered by Fayol &Weber 44

The Problem with the Classical Viewpoint: TooMechanistic 45

2.3 Behavioral Viewpoint: Behaviorism, HumanRelations, & Behavioral Science 46

Early Behaviorism: Pioneered by Munsterberg,Follett, & Mayo 46

The Human Relations Movement: Pioneered byMaslow & McGregor 48

The Behavioral Science Approach 49

2.4 Quantitative Viewpoints: Management Science& Operations Research 50

Management Science: Using Mathematics to SolveManagement Problems 50Operations Management: Helping OrganizationsDeliver Products or Services More Effectively 51

xxiii

' X'iS

2.5 Systems Viewpoint 52

The Systems Viewpoint 53

The Four Parts of a System 53

2.6 Contingency Viewpoint 56

2.7 Quality-Management Viewpoint 58

Quality Control & Quality Assurance 58

Total Quality Management: Creating an OrganizationDedicated to Continuous Improvement 59

2.8 The Learning Organization in an Era ofAccelerated Change 60

The Learning Organization: Handling Knowledge &

Modifying Behavior 60

Why Organizations Need to Be Learning

Organizations: Living with Accelerated Change 60

How to Build a Learning Organization: Three Roles

Managers Play 62

Key Terms Used in This Chapter 63

Summary 63


Self-Assessment 66

Ethical Dilemma 67

part 2The Environment of Management

Chapter Three

The Manager's Changing WorkEnvironment & Ethical Responsibilities:Doing the Right Thing 70

3.1 The Community of Stakeholders Inside theOrganization 72

Internal & External Stakeholders 73

Internal Stakeholders 74

3.2 The Community of Stakeholders Outside theOrganization 75

The Task Environment 75

The General Environment 79

3.3 The Ethical Responsibilities Required of Youas a Manager 81

Defining Ethics & Values 81

Four Approaches to Deciding Ethical

Dilemmas 82

Enron, SarbOx, & Ethical Training 83

How Organizations Can Promote Ethics 84

3.4 The Social Responsibilities Required of You asa Manager 86

Is Social Responsibility Worthwhile? Opposing &Supporting Viewpoints 87

The Idea of Blended Value: Measuring BothEconomic & Social Benefits 87

Two Types of Social Responsibility: Sustainability &

Philanthropy 88

How Does Being Good Pay Off? 90

3.5 The New Diversified Workforce 91How to Think about Diversity: Which Differences AreImportant? 91

Trends in Workforce Diversity 93

Barriers to Diversity 95

Key Terms Used in this Chapter 97

Summary 97


Self-Assessment 101

Ethical Dilemma 102

Chapter Four

Global Management: Managingacross Borders 104

4.1 Globalization: The Collapse of Time &Distance 106

The Rise of the "Global Village" & ElectronicCommerce 106

One Big World Market: The Global Economy 107

Cross-Border Business: The Rise of Both

Megamergers & Minifirms Worldwide 108

4.2 You & International Management 110

Why Learn about International Management? 110

The Successful International Manager: Geocentric,

Not Ethnocentric or Polycentric 112

4.3 Why & How Companies ExpandInternationally 113

Why Companies Expand Internationally 113

How Companies Expand Internationally 114

4.4 The World of Free Trade: Regional EconomicCooperation 118

Barriers to International Trade 118

Organizations Promoting International Trade 119

Major Trading Blocs: NAFTA, EU, APEC, &

Mercosur 120

Most Favored Nation Trading Status 121

4.5 The Importance of Understanding CulturalDifferences 122

The Importance of National Culture 122

Cultural Dimensions: The Hofstede & GLOBE ProjectModels 123

Other Cultural Variations: Language, InterpersonalSpace, Time Orientation, & Religion 127

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U.S. Managers on Foreign Assignments: Why DoThey Fail? 129


Summary 130


Self-Assessment 134

Ethical Dilemma 136

part 3Planning

Chapter Five

Planning: The Foundation ofSuccessful Management 138

5.1 Planning & Uncertainty 140

Planning & Strategic Management 140

Why Not Plan? 140

How Planning Helps You: Four Benefits 141

How Organizations Respond to

Uncertainty 142

5.2 Fundamentals of Planning 144

Mission & Vision Statements 144

Three Types of Planning for Three Levels ofManagement: Strategic, Tactical; &Operational 146

Goals, Action Plans, & Operating Plans 146

Types of Plans: Standing Plans & Single-Use

Plans 149

5.3 Promoting Goal Setting: Management byObjectives and SMART Goals 150

What Is MBO? The Four-Step Process for MotivatingEmployees 150

Cascading Objectives: MBO from the

Top Down 151

Setting SMART Goals 152

5.4 The Planning/Control Cycle 154

5.5 Project Planning 156

The Project Life Cycle: The Predictable Evolution of aProject 157

The Importance of Project Deadlines 159


Summary 160


Self-Assessment 163

Ethical Dilemma 165

Chapter Six

Strategic Management: How StarManagers Realize a GrandDesign 166

6.1 The Dynamics of Strategic Planning 168

Strategy, Strategic Management, & StrategicPlanning 169

Why Strategic Management & Strategic Planning Are

Important 169

What Is an Effective Strategy? Three Principles 171

Does Strategic Management Work for Small as Well

as Large Firms? 172

6.2 The Strategic-Management Process 173

The Five Steps of the Strategic-Management

Process 174

6.3 Establishing the Grand Strategy 179

SWOT Analysis 179

Forecasting: Predicting the Future 180

6.4 Formulating Strategy 183

Porter's Five Competitive Forces 183

Porter's Four Competitive Strategies 184

The Product Life Cycle: Different Stages RequireDifferent Strategies 185

Single-Product Strategy versus DiversificationStrategy 187

Competitive Intelligence 189

6.5 Implementing & Controlling Strategy:Execution 190

Execution: Getting Things Done 190

The Three Core Processes of Business 191

Building a Foundation of Execution 192


Summary 193


Self-Assessment 197

Ethical Dilemma 198

Chapter Seven

Individual & Group Decision Making:How Managers Make ThingsHappen 200

7.1 The Nature of Decision Making 202

Decision Making Defined 202

General Decision-Making Styles: Directive,Analytical, Conceptual, Behavioral 202

Contents XXV

7.2 Two Kinds of Decision Making: Rational &Nonrational 205Rational Decision Making: Managers Should MakeLogical & Optimal Decisions 205Stage I: Identify the Problem or Opportunity-

Determining the Actual versus theDesirable 205

Stage 2: Think Up Alternative Solutions-Both the

Obvious & the Creative 206

Stage 3: Evaluate Alternatives & Select a Solution-

Ethics, Feasibility, & Effectiveness 206

Stage 4: Implement & Evaluate the SolutionChosen 207

What's Wrong with the Rational Model? 208

Nonrational Decision Making: Managers Find It

Difficult to Make Optimal Decisions 209

7.3 Evidence-Based Decision Making &Analytics 212

Evidence-Based Decision Making 212

In Praise of Analytics 214

7.4 Making Ethical Decisions 216

Road Map to Ethical Decision Making: A DecisionTree 216

Applying the Ethical Decision Tree 217

General Moral Principles for Managers 218

7.5 Group Decision Making: How to Work withOthers 219

Advantages & Disadvantages of Group DecisionMaking 219

What Managers Need to Know about Groups &Decision Making 220

Participative Management: Involving Employees inDecision Making 221

Group Problem-Solving Techniques: Reaching forConsensus 221

More Group Problem-Solving Techniques 222

7.6 How to Overcome Barriers to DecisionMaking 225

How Do Individuals Respond to a Decision Situation?Ineffective & Effective Responses 225Six Common Decision-Making Biases: Rules ofThumb, or "Heuristics" 227


Summary 231


Self-Assessment 235

Ethical Dilemma 236

part 4Organizing

Chapter Eight

Organizational Culture, Structure, &Design: Building Blocks of theOrganization 238

8.1 What Kind of Organizational Culture Will YouBe Operating In? 240What Is an Organizational Culture? 240

Four Types of Organizational Culture: Clan,

Adhocracy, Market, & Hierarchy 241

The Three Levels of Organizational Culture 241

How Employees Learn Culture: Symbols, Stories,Heroes, & Rites & Rituals 243

The Importance of Culture 243

8.2 Developing High-Performance Cultures 245

Cultures for Enhancing Economic Performance:

Three Perspectives 245

Eleven Ways Cultures Become Embedded inOrganizations 247

8.3 What Is an Organization? 249

The Organization: Three Types 249

The Organization Chart 249

8.4 The Major Elements of an Organization 252Common Elements of Organizations: Four Proposed

by Edgar Schein 252

Common Elements of Organizations: Three MoreThat Most Authorities Agree On 253

8.5 Basic Types of Organizational Structures 255

I. The Simple Structure: For the Small Firm 255

2. The Functional Structure: Grouping by SimilarWork Specialties 255

3. The Divisional Structure: Grouping by Similarity ofPurpose 256

4. The Matrix Structure: A Grid of Functional &Divisional for Two Chains of Command 257

5. The Team-Based Structure: Eliminating FunctionalBarriers to Solve Problems 258

6. The Network Structure: Connecting a CentralCore to Outside Firms by ComputerConnections 258

7. The Modular Structure: Outsourcing Pieces of aProduct to Outside Firms 261

8.6 Contingency Design: Factors in Creating theBest Structure 262

I. The Environment: Mechanistic versus OrganicOrganizations—the Burns & Stalker Model 262

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2. The Environment: Differential versus Integration—the Lawrence & Lorsch Model 264

3. Size: The Larger the Organization, the MoreMechanistic 264

4. Technology: Small-Batch, Large-Batch, orContinuous-Process—the Woodward Model 265

5. Life Cycle: Four Stages in the Life of anOrganization 266

Key Terms Used in this Chapter 267

Summary 267


Self-Assessment 271

Ethical Dilemma 272

Chapter Nine

Human Resource Management:Getting the Right People forManagerial Success 274

9.1 Strategic Human Resource Management 276

Human Resource Management: Managing an

Organization's Most Important Resource 276

Planning the Human Resources Needed 277

9.2 The Legal Requirements of Human ResourceManagement 280

1. Labor Relations 280

2. Compensation & Benefits 280

3. Health & Safety 280

4. Equal Employment Opportunity 280

9.3 Recruitment & Selection: Putting the RightPeople into the Right Jobs 284

Recruitment: How to Attract QualifiedApplicants 284

Selection: How to Choose the Best Person for theJob 285

9.4 Orientation, Training, & Development 291Orientation: Helping Newcomers Learn the

Ropes 291

Training & Development: Helping People PerformBetter 292

9.5 Performance Appraisal 294Defining Performance Appraisal 294

Who Should Make Performance Appraisals? 295

Effective Performance Feedback 297

9.6 Managing an Effective Workforce:Compensation & Benefits 298Wages or Salaries 298

Incentives 298

Benefits 299

9.7 Managing Promotions, Transfers, Disciplining,& Dismissals 3 0 0

Promotion: Moving Upward 300

Transfer: Moving Sideways 301

Disciplining & Demotion: The Threat of MovingDownward 301

Dismissal: Moving Out of the Organization 301


Summary 303


Self-Assessment 306

Ethical Dilemma 308

Chapter Ten

Organizational Change & Innovation:Lifelong Challenges for theExceptional Manager 31010.1 The Nature of Change in Organizations 312

Fundamental Change: What Will You Be Called On to

Deal With? 312

Two Types of Change: Reactive versus Proactive 314

The Forces for Change: Outside & Inside theOrganization 315

Areas in Which Change Is Often Needed: People,Technology, Structure, & Strategy 317

10.2 Organizational Development: What It Is, WhatIt Can Do 319

What Can OD Be Used For? 319

How OD Works 319

The Effectiveness of OD 321

l0.3Promoting Innovation within theOrganization 322

Succeeding at Innovation 322

Types of Innovation: Product or Process, Incremental

or Radical 323

Four Characteristics of Innovation 324

Celebrating Failure: Cultural & Other FactorsEncouraging Innovation 325

How You Can Foster Innovation: Three Steps 327

10.4The Threat of Change: Managing EmployeeFear & Resistance 328

The Degree to Which Employees Fear Change: From

Least Threatening to Most Threatening 328

Lewin's Change Model: Unfreezing, Changing, &

Refreezing 330

Kotter's Eight Steps for Leading OrganizationalChange 330

Contents XXVII


Summary 332


Self-Assessment 334

Ethical Dilemma 336

part 5Leading

Chapter Eleven

Managing Individual Differences &Behavior: Supervising People asPeople 338

11.I Personality & Individual Behavior 340

The Big Five Personality Dimensions 340

Five Traits Important in Organizations 342

11.2 Values, Attitudes, & Behavior 345

Organizational Behavior: Trying to Explain & PredictWorkplace Behavior 345

Values: What Are Your Consistent Beliefs & Feelingsabout All Things? 345

Attitudes: What Are Your Consistent Beliefs &Feelings about Specific Things? 346

Behavior: How Values & Attitudes Affect People'sActions & Judgments 347

11.3 Work-Related Attitudes & BehaviorsManagers Need to Deal With 349

Work-Related Attitudes: Job Satisfaction, Job

Involvement, & Organizational Commitment 349

Important Workplace Behaviors 350

11.4 Perception & Individual Behavior 352

The Four Steps in the Perceptual Process 352

Four Distortions in Perception 352

The Self-Fulfilling Prophecy, or Pygmalion Effect 356

11.5 Understanding Stress & IndividualBehavior 357

What Is Stress? 357

The Sources of Job-Related Stress 358

The Consequences of Stress 359

Reducing Stressors in the Organization 361


Summary 362


Self-Assessment 365

Ethical Dilemma 366

Chapter Twelve

Motivating Employees: AchievingSuperior Performance in theWorkplace 36812.1 Motivating for Performance 370

Motivation: What It Is, Why It'sImportant 370

The Four Major Perspectives on Motivation:Overview 371

12.2 Content Perspectives on EmployeeMotivation 372

Maslow's Hierarchy of Needs Theory: FiveLevels 372

Alderfer's ERG Theory: Existence, Relatedness, &Growth 374

McClelland's Acquired Needs Theory: Achievement,Affiliation, & Power 375

Herzberg's Two-Factor Theory: From DissatisfyingFactors to Satisfying Factors 377

12.3 Process Perspectives on EmployeeMotivation 379

Equity Theory: How Fairly Do You Think You're BeingTreated in Relation to Others? 379

Expectancy Theory: How Much Do You Want & HowLikely Are You to Get It? 381

Goal-Setting Theory: Objectives Should Be Specific &Challenging but Achievable 384

12.4 Job Design Perspectives onMotivation 385

Fitting Jobs to People 385

The Job Characteristics Model: Five Job Attributesfor Better Work Outcomes 386

12.5 Reinforcement Perspectives onMotivation 389

The Four Types of Reinforcement: Positive, Negative,

Extinction, & Punishment 389

Using Reinforcement to Motivate

Employees 391

12.6 Using Compensation & Other Rewards toMotivate 392

Motivation & Compensation 392

Nonmonetary Ways of Motivating

Employees 394


Summary 398


Self-Assessment 401

Ethical Dilemma 402

xxviii Contents

Chapter Thirteen

Groups & Teams: IncreasingCooperation, ReducingConflict 404

13.1 Groups versus Teams 406

More Teamwork: The Change Today's Employees

Need to Make 406

Groups & Teams: How Do They Differ? 407

Formal versus Informal Groups 408

Work Teams for Four Purposes: Advice, Production,Project, and Action 409

Self-Managed Teams: Workers with Own

Administrative Oversight 410

13.2 Stages of Group & Team Development 411

Stage I: Forming-"Why Are We Here?" 411

Stage 2: Storming-"Why Are We Fighting Over Who

Does What & Who's in Charge?" 411

Stage 3: Norming—"Can We Agree on Roles & Work

as a Team?" 412

Stage 4: Performing—"Can We Do the Job

Properly?" 412

Stage 5: Adjourning—"Can We Help Members

Transition Out?" 412

13.3 Building Effective Teams 413

I. Performance Goals & Feedback 4132. Motivation through Mutual /

Accountability 4133. Size: Small Teams or Large Teams? 4144. Roles: How Team Members Are Expected to

Behave 415

5. Norms: Unwritten Rules for Team Members 416

6. Cohesiveness: The Importance ofTogetherness 417

7. Groupthink: When Peer Pressure Discourages"Thinking Outside the Box" 418

13.4 Managing Conflict 421

The Nature of Conflict: Disagreement Is Normal 421

Can Too Little or Too Much Conflict Affect

Performance? 422

Seven Causes of Conflict 423

How to Stimulate Constructive Conflict 425


Summary 427


Self-Assessment 430

Ethical Dilemma 432

Chapter Fourteen

Power, Influence, & Leadership:From Becoming a Manager toBecoming a Leader 434

14.1 The Nature of Leadership: WieldingInfluence 436Managers & Leaders: Not Always the Same 436

Five Sources of Power 437

Leadership & Influence: Using Persuasion to GetYour Way at Work 439

Five Approaches to Leadership 441

14.2 Trait Approaches: Do Leaders Have DistinctivePersonality Characteristics? 442

Is Trait Theory Useful? 442

Kouzes & Posner's Research: Is Honesty the TopLeadership Trait? 443

Gender Studies: Do Women Have Traits That MakeThem Better Leaders? 443

Leadership Lessons from the GLOBE Project 444

14.3 Behavioral Approaches: Do Leaders ShowDistinctive Patterns of Behavior? 446

The University of Michigan Leadership Model 446

The Ohio State Leadership Model 446

14.4 Contingency Approaches: Does LeadershipVary with the Situation? 448

I. The Contingency Leadership Model: Fiedler'sApproach 448

2. The Path-Goal Leadership Model: House'sApproach 449

3. The Situational Leadership Theory Model: Hersey& Blanchard's Approach 452

14.5 The Full-Range Model: Uses of Transactional &Transformational Leadership 454

Transactional versus Transformational Leaders 454

The Best Leaders Are Both Transactional &

Transformational 455

Four Key Behaviors of Transformational Leaders 455

Implications of Transformational Leadership for

Managers 457

14.6 Four Additional Perspectives 458

Leader-Member Exchange (LMX) Leadership 458

Shared Leadership 459

Servant Leadership: Meeting the Goals of Followers

& the Organization, Not of Oneself 459

E-Leadership: Managing for Global Networks 460


Summary 462


Contents xxix

Self-Assessment 465

Ethical Dilemma 467

Chapter Fifteen

Interpersonal & OrganizationalCommunication: Mastering theExchange of Information 468

15.1 The Communication Process: What It Is, HowIt Works 470Communication Defined: The Transfer of Information& Understanding 471

How the Communication Process Works 471

Selecting the Right Medium for Effective

Communication 472

15.2 Barriers to Communication 474

I. Physical Barriers: Sound, Time, Space, & SoOn 475

2. Semantic Barriers: When Words Matter 475

3. Personal Barriers: Individual Attributes ThatHinder Communication 477

Nonverbal Communication 478

Gender-Related Communication Differences 479

15.3 How Managers Fit into the CommunicationProcess 482

Formal Communication Channels: Up, Down,

Sideways, & Outward 482

Informal Communication Channels 484

15.4 Communication in the Information Age 485

Communication Tools of Information Technology 485

Workplace Problems: Impediments to

Productivity 488

15.5 Improving Communication Effectiveness 4 9 0

Being an Effective Listener 490

Being an Effective Reader 491

Being an Effective Writer 492

Being an Effective Speaker 493


Summary 494


Self-Assessment 497

Ethical Dilemma 5 0 0

part 6Control

Chapter Sixteen

Techniques for EnhancingOrganizational Effectiveness 502

16.1 Managing for Productivity 504

What Is Productivity? 504

Why Increasing Productivity Is Important 505

16.2 Control: When Managers MonitorPerformance 506

Why Is Control Needed? 506

Steps in the Control Process 508

16.3 The Balanced Scorecard, Strategy Maps, &Measurement Management 511

The Balanced Scorecard 511

The Visual Balanced Scorecard: Strategy Maps 513

Measurement Management 513

16.4 Levels & Areas of Control 516Levels of Controls: Strategic, Tactical, &

Operational 516

Six Areas of Control 516

16.5 Some Financial Tools for Control 518

Budgets: Formal Financial Projections 518

Financial Statements: Summarizing the

Organization's Financial Status 520

Ratio Analysis: Indicators of an Organization'sFinancial Health 520

Audits: External versus Internal 520

16.6 Total Quality Management 522

Deming Management: The Contributions of

W. Edwards Deming to Improved Quality 522

Core TQM Principles: Deliver Customer Value &

Strive for Continuous Improvement 524

Applying TQM to Services: The RATER

Dimensions 526

Some TQM Techniques 527

16.7 Managing Control Effectively 531

The Keys to Successful Control 531

Barriers to Control Success 532


Summary 534


Self-Assessment 538

Ethical Dilemma 539

XXX Contents

Epilogue: The Future of Management & the Keysto Your Managerial Success 540

Management Ideas Are Not Fixed but Are a Process:The Thoughts of Gary Hamel 540What Should You Do? What Managerial PrinciplesCan You Count On? 542

AppendixThe Project Planner's Toolkit: Flowcharts, GanttCharts, & Break-Even Analysis Al

Tool #1: Flowcharts—for Showing Event Sequences &Alternate Decision Scenarios Al

Tool #2: Gantt Charts-Visual Time Schedules forWork Tasks A3

Tool #3: Break-Even Analysis—How Many Items MustYou Sell to Turn a Profit? A4

Chapter Notes CNI

Glossary Gl

Credits CRI

Name Index l-l

Company Index 1-5

Subject Index 1-8

Contents XXXI

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