Exploring Management

by Schermerhorn, John R.; Bachrach, Daniel G.

• ISBN13: 9781119395775
• ISBN10: 1119395771
• Edition: 6th
• Format: Loose-leaf
• Copyright: 2017-10-16
• Publisher: WILEY

Summary

Exploring Management supports teaching and learning of core management concepts by presenting material in a straightforward, conversational style with a strong emphasis on application. With a focus on currency, high-interest examples and pedagogy that encourages critical thinking and personal reflection, Exploring Management is the perfect balance between what students need and what instructors want. 

Table of Contents

1 Managers and the Management Process 1

1.1 What Does It Mean To Be a Manager? 2

Organizations Have Different Types and Levels of Managers. 2

Accountability Is a Foundation of Managerial Performance. 4

Effective Managers Help Others Achieve High Performance and Satisfaction. 4

Managers Are Coaches, Coordinators, and Supporters. 4

1.2 What Do Managers Do, and What Skills Do They Use? 7

Managers Plan, Organize, Lead, and Control. 7

Managers Perform Informational, Interpersonal, and Decisional Roles. 9

Managers Use Networking and Social Capital to Pursue Action Agendas. 9

Managers Use Technical, Human, and Conceptual Skills. 10

Managers Should Learn from Experience. 12

1.3 What Are Some Important Career Issues? 14

Globalization and Job Migration Have Changed the World of Work. 14

Failures of Ethics and Corporate Governance are Troublesome. 15

Respecting Diversity and Eliminating Discrimination Are Top Social Priorities. 16

Talent Is a “Must Have” in a Free-Agent and On-Demand Economy. 16

Self-Management Skills are Essential for Career Success. 17

Personal Career Readiness Must Be Developed and Maintained. 17

2 Management Learning 22

2.1 What Are the Lessons of the Classical Management Approaches? 23

Taylor’s Scientific Management Sought Efficiency in Job Performance. 23

Weber’s Bureaucratic Organization Is Supposed to Be Efficient and Fair. 25

Fayol’s Administrative Principles Describe Managerial Duties and Practices. 26

2.2 What Are the Contributions of the Behavioral Management Approaches? 28

Follett Viewed Organizations As Communities of Cooperative Action. 28

The Hawthorne Studies Focused Attention on the Human Side of Organizations. 29

Maslow Described a Hierarchy of Human Needs with Self-Actualization at the Top. 30

McGregor Believed Managerial Assumptions Create Self-Fulfilling Prophecies. 31

Argyris Suggests That Workers Treated As Adults Will Be More Productive. 31

2.3 What Are the Foundations of Modern Management Thinking? 34

Managers Use Quantitative Analysis and Tools to Solve Complex Problems. 34

Organizations Are Open Systems That Interact with Their Environments. 35

Contingency Thinking Holds That There Is No One Best Way to Manage. 36

Quality Management Focuses Attention on Continuous Improvement. 37

Evidence-Based Management Seeks Hard Facts About What Really Works. 38

3 Ethics and Social Responsibility 42

3.1 How Do Ethics and Ethical Behavior Play Out in the Workplace? 43

Ethical Behavior Is Values Driven. 43

Views Differ on What Constitutes Moral Behavior. 44

What Is Considered Ethical Can Vary Across Cultures. 46

Ethical Dilemmas Are Tests of Personal Ethics and Values. 47

People Have a Tendency to Rationalize Unethical Behavior. 48

3.2 How Can We Maintain High Standards of Ethical Conduct? 50

Personal Character and Moral Development Influence Ethical Decision Making. 50

Managers as Positive Role Models Can Inspire Ethical Conduct. 51

Training in Ethical Decision Making Can Improve Ethical Conduct. 52

Protection of Whistleblowers Can Encourage Ethical Conduct. 52

Formal Codes of Ethics Set Standards for Ethical Conduct. 53

3.3 What Should We Know About the Social Responsibilities of Organizations? 55

Social Responsibility is an Organization’s Obligation to Best Serve Society. 55

Perspectives Diff er on the Importance of Corporate Social Responsibility. 56

Shared Value Integrates Corporate Social Responsibility into Mission and Strategy. 56

Social Businesses and Social Entrepreneurs are Driven by Social Responsibility. 57

Social Responsibility Audits Measure the Social Performance of Organizations. 57

Sustainability Is an Important Social Responsibility Goal. 58

4 Managers as Decision Makers 63

4.1 How Do Managers Use Information to Solve Problems? 64

Managers Use Technological, Informational, and Analytical Competencies to Solve Problems. 64

Managers Deal with Problems Posing Threats and Offering Opportunities. 65

Managers Can Be Problem Avoiders, Problem Solvers, or Problem Seekers. 65

Managers Make Programmed and Nonprogrammed Decisions. 66

Managers Use Both Systematic and Intuitive Thinking. 66

Managers Use Different Cognitive Styles to Process Information for Decision Making. 67

Managers Make Decisions under Conditions of Certainty, Risk, and Uncertainty. 67

4.2 What Are Five Steps in the Decision-Making Process? 70

Step 1—Identify and Define the Problem. 70

Step 2—Generate and Evaluate Alternative Courses of Action. 71

Step 3—Decide on a Preferred Course of Action. 71

Step 4—Take Action to Implement the Decision. 72

Step 5—Evaluate Results. 73

Ethical Reasoning Is Important at All Steps in Decision Making. 73

4.3 What Are Current Issues in Managerial Decision Making? 75

Creativity Drives Better Decision Making. 75

Group Decision Making Has Advantages and Disadvantages. 76

Judgmental Heuristics and Other Biases May Cause Decision-Making Errors. 76

Managers Must Prepare for Crisis Decision Making. 78

5 Plans and Planning Techniques 82

5.1 How and Why Do Managers Use the Planning Process? 83

Planning Is One of the Four Functions of Management. 83

Planning Sets Objectives and Identifies How to Achieve Them. 84

Planning Improves Focus and Flexibility. 84

Planning Improves Action Orientation. 85

Planning Improves Coordination and Control. 85

Planning Improves Time Management. 86

5.2 What Types of Plans Do Managers Use? 89

Managers Use Short-Range and Long-Range Plans. 89

Managers Use Strategic and Operational Plans. 89

Organizational Policies and Procedures Are Plans. 90

Budgets Are Plans That Commit Resources to Activities. 90

5.3 What Are Some Useful Planning Tools and Techniques? 93

Forecasting Tries to Predict the Future. 93

Contingency Planning Creates Backup Plans for When Things Go Wrong. 93

Scenario Planning Craft s Plans for Alternative Future Conditions. 94

Benchmarking Identifies Best Practices Used by Others. 94

Goal Setting Aligns Plans and Activities. 95

Goals Can Have Downsides and Must Be

Well Managed. 96

Participatory Planning Builds Implementation Capacities. 97

6 Controls and Control Systems 101

6.1 How and Why Do Managers Use the Control Process? 102

Controlling is One of the Four Functions of Management. 102

Step 1—Control Begins with Objectives and Standards. 103

Step 2—Control Measures Actual Performance. 103

Step 3—Control Compares Results with Objectives and Standards. 104

Step 4—Control Takes Corrective Action as Needed. 104

6.2 What Types of Controls Are Used by Managers? 106

Managers Use Feedforward, Concurrent, and Feedback Controls. 106

Managers Use Both Internal and External Controls. 107

Managing by Objectives Helps Integrate Planning and Controlling. 108

6.3 What Are Some Useful Control Tools and Techniques? 111

Quality Control is a Foundation of Management. 111

Gantt Charts and CPM/PERT Improve Project Management and Control. 112

Inventory Controls Help Save Costs. 113

Breakeven Analysis Shows where Revenues will Equal Costs. 113

Financial Ratios Measure Key Areas of Financial Performance. 114

Balanced Scorecards Keep the Focus on Strategic Control. 115

7 Strategy and Strategic

Management 119

7.1 What Types of Strategies Are Used by Organizations? 120

Strategy Is a Comprehensive Plan for Achieving Competitive Advantage. 120

Organizations Use Corporate, Business, and Functional Strategies. 121

Growth Strategies Focus on Expansion. 122

Restructuring and Divestiture Strategies Focus on Consolidation. 123

Global Strategies Focus on International Business Opportunities. 123

Cooperation Strategies Focus on Alliances and Partnerships. 123

E-Business Strategies Use the Web and Apps for Business Success. 124

7.2 How Do Managers Formulate and Implement Strategies? 127

The Strategic Management Process Formulates and Implements Strategies. 127

SWOT Analysis Identifies Strengths, Weaknesses, Opportunities, and Threats. 128

Porter’s Five Forces Model Analyzes Industry Attractiveness. 129

Porter’s Competitive Strategies Model Identifies Business or Product Strategies. 129

Portfolio Planning Examines Strategies Across Multiple Businesses or Products. 131

Strategic Leadership Ensures Strategy Implementation and Control. 131

8 Organization Structure and Design 136

8.1 What Is Organizing as a Managerial Responsibility? 137

Organizing Is One of the Management Functions. 137

Organization Charts Describe Formal Structures of Organizations. 138

Organizations Also Have Informal Structures. 138

Informal Structures Have Good Points and Bad Points. 139

8.2 What Are the Most Common Organization Structures? 141

Functional Structures Group Together People Using Similar Skills. 141

Divisional Structures Group Together People by Products, Customers, or Locations. 142

Matrix Structures Combine the Functional and Divisional Structures. 144

Team Structures Make Extensive Use of Permanent and Temporary Teams. 145

Network Structures Make Extensive Use of Strategic Alliances and Outsourcing. 145

8.3 What Are the Trends in Organizational Design? 149

Organizations Are Becoming Flatter and Using Fewer Levels of Management. 149

Organizations Are Increasing Decentralization. 149

Organizations Are Increasing Delegation and Empowerment. 150

Organizations Are Becoming More Horizontal and Adaptive. 151

Organizations Are Using More Alternative Work Schedules. 152

9 Organizational Cultures, Innovation, and Change 157

9.1 What Is the Nature of Organizational Culture? 158

Organizational Culture Is the Personality of the Organization. 158

Organizational Culture Shapes Behavior and Influences Performance. 159

Not All Organizational Cultures Are Alike. 159

The Observable Culture Is What You See and Hear As an Employee or Customer. 160

The Core Culture Is Found in the Underlying Values of the Organization. 161

Value-Based Management Supports a Strong Organizational Culture. 162

9.2 How Do Organizations Support and Achieve Innovation? 164

Organizations Pursue Process, Product, and Business Model Innovations. 164

Green Innovations Advance the Goals of Sustainability. 164

Social Innovations Seek Solutions to Important Societal Problems. 165

Commercializing Innovation Turns New Ideas into Salable Products. 165

Disruptive Innovation Uses New Technologies to Displace Existing Practices. 166

Innovative Organizations Share Many Common Characteristics. 166

9.3 How Do Managers Lead the Processes of Organizational Change? 168

Organizations and Teams Need Change Leaders. 168

Organizational Change Can Be Transformational or Incremental. 168

Three Phases of Planned Change Are Unfreezing, Changing, and Refreezing. 169

Times of Complexity Require Improvising in the Change Process. 170

Managers Use Force-Coercion, Rational Persuasion, and Shared Power Change Strategies. 171

Change Leaders Identify and Deal Positively with Resistance to Change. 172

10 Human Resource Management 177

10.1 What Are the Purpose and Legal Context of Human Resource Management? 178

Human Resource Management Attracts, Develops, and Maintains a Talented Workforce. 178

Strategic Human Resource Management Aligns Human Capital with Organizational Strategies. 179

Laws Protect Against Employment Discrimination. 179

Laws Can’t Guarantee That Employment Discrimination Will Never Happen. 180

10.2 What Are the Essentials of Human Resource Management? 183

Psychological Contracts Set the Exchange of Value Between Individuals and Organizations. 183

Recruitment Attracts Qualified Job Applicants. 184

Selection Makes Decisions to Hire Qualified Job Applicants. 185

Onboarding Introduces New Hires to the Organization. 186

Training Develops Employee Skills and Capabilities. 186

Performance Reviews Assess Work Accomplishments. 187

Career Development Provides for Retention and Career Paths. 188

10.3 What Are Current Issues in Human Resource Management? 190

Demands Are Increasing for Job Flexibility and Work–Life Balance. 190

More People Are Working as Independent Contractors and Contingency Workers. 190

Compensation Plans Influence Recruitment and Retention. 191

Fringe Benefits Are an Important Part of Compensation. 192

Labor Relations and Collective Bargaining Are Closely Governed by Law. 193

11 Leadership 198

11.1 What Are the Foundations of Effective Leadership? 199

Leadership is One of The Four Functions of Management. 199

Leaders Use Power to Achieve Influence. 200

Leaders Bring Vision to Teams and Organizations 201

Leaders Display Different Traits in the Quest for Effectiveness. 202

Leaders Display Different Styles in the Quest for Effectiveness. 202

11.2 What Can We Learn from the Contingency Leadership Theories? 205

Fiedler’s Contingency Model Matches Leadership Styles with Situational Differences. 205

The Hersey-Blanchard Situational Model Matches Leadership Styles with the Maturity of Followers. 206

House’s Path-Goal Theory Matches Leadership Styles with Task and Follower Characteristics. 207

Leader–Member Exchange Theory Describes How Leaders Treat In-Group and Out-Group Followers. 208

The Vroom-Jago Model Describes How Leaders Use Alternative Decision-Making Methods. 208

11.3 What Are Current Issues and Directions in Leadership Development? 211

Transformational Leadership Inspires Enthusiasm and Great Performance. 211

Emotionally Intelligent Leadership Handles Emotions and Relationships Well. 212

Interactive Leadership Emphasizes Communication, Listening, and Participation. 213

Moral Leadership Builds Trust Through Personal Integrity. 214

Servant Leadership Is Follower Centered and Empowering. 215

12 Individual Behavior 219

12.1 How Do Perceptions Influence Individual Behavior? 220

Perception Filters Information Received From Our Environment. 220

Perceptual Distortions Can Hide Individual Differences. 220

Perception Can Cause Attribution Errors. 221

Impression Management Influences How Others Perceive Us. 222

12.2 How Do Personalities Influence Individual Behavior? 225

The Big Five Personality Traits Describe Important Individual Differences. 225

The Myers-Briggs Type Indicator Is a Popular Approach to Personality Assessment. 226

Personalities Vary on Personal Conception Traits. 226

People with Type A Personalities Tend to Stress Themselves. 227

Stress Has Consequences for Performance and Health. 228

12.3 How Do Attitudes, Emotions, and Moods Influence Individual Behavior? 230

Attitudes Predispose People to Act in Certain Ways. 230

Job Satisfaction Is a Positive Attitude Toward One’s Job and Work Experiences. 231

Job Satisfaction Influences Work Behaviors. 231

Job Satisfaction Has a Complex Relationship with Job Performance. 232

Emotions and Moods Are States of Mind that Influence Behavior. 232

13 Motivation 237

13.1 How Do Human Needs Influence Motivation to Work? 238

Maslow Describes a Hierarchy of Needs Topped by Self-Actualization. 238

Alderfer’s ERG Theory Discusses Existence, Relatedness, and Growth Needs. 239

McClelland Identifies Acquired Needs for Achievement, Power, and Affiliation. 240

Herzberg’s Two-Factor Theory Focuses on Higher-Order Need Satisfaction. 241

The Core Characteristics Model Integrates Motivation and Job Design. 242

13.2 How Do Thoughts and Decisions Affect Motivation to Work? 245

Equity Theory Explains How Social Comparisons Motivate Individual Behavior. 245

Expectancy Theory Focuses on the Decision to Work Hard, or Not. 246

Goal-Setting Theory Shows that the Right Goals can be Motivating. 248

13.3 How Does Reinforcement Influence Motivation to Work? 251

Operant Conditioning Influences Behavior by Controlling its Consequences. 251

Operant Conditioning Uses Four Reinforcement Strategies 252

Positive Reinforcement Connects Desirable Behavior with Pleasant Consequences. 253

Punishment Connects Undesirable Behavior with Unpleasant Consequences. 254

14 Teams and Teamwork 258

14.1 Why Is It Important to Understand Teams and Teamwork? 259

Teams Offer Synergy and Other Benefits. 259

Teams Can Suffer from Performance Problems. 260

Organizations Are Networks of Formal Teams and Informal Groups. 260

Organizations Use Committees, Task Forces, and Cross-Functional Teams. 261

Virtual Teams Use Technology to Bridge Distances. 262

Self-Managing Teams Are a Form of Job Enrichment for Groups. 263

14.2 What Are the Building Blocks of Successful Teamwork? 265

Teams Need the Right Members to Be Effective. 266

Teams Need the Right Setting and Size to be Effective. 267

Teams Need the Right Processes to be Effective. 267

Teams Move Through Different Stages of Development. 268

Team Performance Is Influenced By Norms. 270

Team Performance is Influenced by Cohesiveness. 270

Team Performance is Influenced by Task and Maintenance Activities. 271

Team Performance is Influenced by Communication Networks. 272

14.3 How Can Managers Create and Lead High-Performance Teams? 275

Team Building Can Improve Teamwork and Performance. 275

Teams Benefit When They Use the Right Decision Methods. 275

Teams Suffer When Groupthink Leads to Bad Decisions. 276

Teams Benefit When Conflicts Are Well Managed. 277

15 Communication 282

15.1 What Is Communication, and When Is It Effective? 283

Communication Helps to Build Social Capital. 283

Communication Is a Process of Sending and Receiving Messages With Meanings Attached. 283

Communication Is Effective When the Receiver Understands the Sender’s Messages. 284

Communication Is Efficient When it Is Delivered at Low Cost to the Sender. 285

Communication Is Persuasive When the Receiver Acts as the Sender Intends. 285

15.2 What Are the Major Barriers to Effective Communication? 288

Poor Use of Channels Makes It Difficult to Communicate Effectively. 288

Poor Written or Oral Expression Makes It Difficult to Communicate Effectively. 289

Failure to Spot Nonverbal Signals Makes It Difficult to Communicate Effectively. 290

Information Filtering Makes It Difficult to Communicate Effectively. 290

Overloads and Distractions Make It Difficult to Communicate Effectively. 291

15.3 How Can We Improve Communication With People at Work? 293

Active Listening Helps Others to Say What They Really Mean. 293

Constructive Feedback Is Specific, Timely, and Relevant. 294

Office Designs Can Encourage Interaction and Communication. 295

Transparency and Openness Build Trust in Communication. 295

Appropriate Online Behavior Is a Communication Essential. 296

Sensitivity and Etiquette Improve Cross-Cultural Communication. 296

16 Diversity and Global Cultures 301

16.1 What Should We Know About Diversity in the Workplace? 302

Inclusion Drives the Business Case for Diversity. 302

Multicultural Organizations Value and Support Diversity. 303

Diversity Bias Exists in Many Situations. 303

Organizational Subcultures Create Diversity Challenges. 305

Managing Diversity Is a Leadership Priority. 306

16.2 What Should We Know About Diversity Among Global Cultures? 308

Culture Shock Is Discomfort in Cross-Cultural Situations. 308

Cultural Intelligence Is an Ability to Adapt to Different Cultures. 308

The “Silent” Languages of Cultures Include Context, Time, and Space. 309

Cultural Tightness and Looseness Varies Around the World. 311

Hofstede’s Model Identifies Value Differences Among National Cultures. 311

Intercultural Competencies Are Essential Career Skills. 313

17 Globalization and International Business 318

17.1 How Does Globalization Affect International Business? 319

Globalization Increases Interdependence of the World’s Economies. 320

Globalization Creates International Business Opportunities. 321

Global Sourcing Is a Common International Business Activity. 321

Export/Import, Licensing, and Franchising Are Market Entry Forms of International Business. 322

Joint Ventures and Wholly Owned Subsidiaries Are Direct Investment Forms of International Business. 323

International Business Is Complicated by Different Legal and Political Systems. 323

International Businesses Deal with Regional Economic Alliances. 324

17.2 What Are Global Corporations, and How Do They Work? 327

Global Corporations Have Extensive Operations in Many Countries. 327

The Actions of Global Corporations Can Be Controversial. 327

Managers of Global Corporations Face Ethics Challenges. 328

Planning and Controlling Are Complicated in Global Corporations. 330

Organizing Can Be Difficult in Global Corporations. 330

Leading Is Challenging in Global Corporations. 331

18 Entrepreneurship and Small Business 335

18.1 What Is Entrepreneurship, and Who Are Entrepreneurs? 336

Entrepreneurs Are Risk Takers Who Spot and Pursue Opportunities. 336

Entrepreneurs Often Share Similar Characteristics and Backgrounds. 338

Entrepreneurs Often Share Similar Personality Traits. 338

Women and Minority Entrepreneurs Are Growing in Numbers. 339

Social Entrepreneurs Seek Novel Solutions to Pressing Social Problems. 340

18.2 What Should We Know About Small Businesses and How To Start One? 343

Small Businesses Are Mainstays of the Economy. 343

Small Businesses Must Master Three Life-Cycle Stages. 343

Family-Owned Businesses Face Unique Challenges. 344

Many Small Businesses Fail Within 5 Years. 345

Assistance Is Available to Help Small Businesses to Get Started. 346

A Small Business Should Start With a Sound Business Plan. 346

There Are Different Forms of Small Business Ownership. 347

There Are Different Ways of Financing a Small Business. 348

Skill-Building Portfolio / Cases for Critical Thinking / Case References / Test Prep Answers / Glossary / Endnotes / Name Index /Organization Index / Subject Index