3e M MANAGEMENT A N A G E BATEMAN | SNELL M E N T ARE YOU HOW DO YOU FIND A JOB OR FOR WHICH CAREER B A T YOU’RE PASSIONATE? E Do social networking M CH 1 A sites like Facebook, M CONNECTED? N D D | LinkedIn, and Twitter ALIM S Social Entrepreneurs # N change how managers 12 0 3 E do well by doing good. 4 communicate? 25 L 7 L What’s your plan? /22/1 CH 6 & 13 2 C Y A CH 3 & 4 N M A www.mhhe.com/BatemanM3e G Y WHY ARE SO MANY E L O B WORKERS UNDER THE AGE L A C K OF 25 DISSATISFIED WITH THEIR JOBS? ISBN 978-0-07-802952-3 MHID 0-07-802952-X CH 11 90000 E A N 9 780078 029523 www.mhhe.com is Motivation. is Momentum. is Moving Forward. is McGraw-Hill. STUDENTS... Want to get better grades? (Who doesn’t?) Ready to do online interactive assignments that help you apply what you’ve learned? (You need to know how to use this stuff in the real world…) Need new ways to study before the big test? (A little peace of mind is a good thing…) With McGraw-Hill's Connect® Plus Management, S TUDENTS GET: Interactive, engaging content. Interactive Applications – chapter assignments M that help you APPLY what you’ve learned in D D A the course. L IM Immediate feedback on how you’re doing. # 1 (No more wishing you could call your 2 0 3 instructor at 1 a.m.) 4 2 5 B Quick access to lectures, practice materials, 7 /2 eBook, and more. (All the material you need to 2 /1 be successful is right at your fi ngertips.) 2 C Y LearnSmart – intelligent fl ash cards that A N adapt to your specifi c needs M A and provide you with 24 x 7 G personalized study Y E L O B L A C K B A C K U P STUDENTS... Want to get better grades? (Who doesn’t?) Ready to do online interactive assignments that help you apply what you’ve learned? (You need to know how to use this stuff in the real world…) Need new ways to study before the big test? (A little peace of mind is a good thing…) With McGraw-Hill's Connect® Plus Management, S TUDENTS GET: Interactive, engaging content. Interactive Applications – chapter assignments M that help you APPLY what you’ve learned in D D A the course. L IM Immediate feedback on how you’re doing. # 1 (No more wishing you could call your 2 0 3 instructor at 1 a.m.) 4 2 5 B Quick access to lectures, practice materials, 7 /2 eBook, and more. (All the material you need to 2 /1 be successful is right at your fi ngertips.) 2 C Y LearnSmart – intelligent fl ash cards that A N adapt to your specifi c needs M A and provide you with 24 x 7 G personalized study Y E L O B L A C K B A C K U P Confirming pages Less managing. More teaching. Greater learning. INSTRUCTORS... Would you like your students to show up for class more prepared? (Let’s face it, class is much more fun if everyone is engaged and prepared…) Want ready-made application-level interactive assignments, student progress reporting, and auto-assignment grading? (Less time grading means more time teaching…) Want an instant view of student or class performance relative to learning objectives? (No more wondering if students understand…) Need to collect data and generate reports required for administration or accreditation? (Say goodbye to manually tracking student learning outcomes…) Want to record and post your lectures for students to view online? With McGraw-Hill's Connect® Plus Management, INSTRUCTORS GET: (cid:115) Interactive Applications – book-specifi c interactive assignments that require students to APPLY what they’ve learned. (cid:115) Simple assignment management, allowing you to spend more time teaching. (cid:115) Auto-graded assignments, quizzes, and tests. (cid:115) Detailed Visual Reporting where student and section results can be viewed and analyzed. (cid:115) Sophisticated online testing capability. (cid:115) A fi ltering and reporting function that allows you to easily assign and report on materials that are correlated to accreditation standards, learning outcomes, and Bloom’s taxonomy. (cid:115) An easy-to-use lecture capture tool. bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd ii 3311//0077//1122 1100::1144 PPMM Confirming pages searchable version Want an online, of your textbook? available online Wish your textbook could be while you’re doing your assignments? Connect® Plus Management eBook If you choose to use Connect® Plus Management, you have an affordable and searchable online version of your book integrated with your other online tools. Connect® Plus Management eBook offers features like: (cid:115) Topic search (cid:115) Direct links from assignments (cid:115) Adjustable text size (cid:115) Jump to page number (cid:115) Print by section value Want to get more from your textbook purchase? interesting Think learning organizational behavior should be a bit more ? Check out the STUDENT RESOURCES section under the Connect® Library tab. Here you’ll fi nd a wealth of resources designed to help you achieve your goals in the course. You’ll fi nd things like quizzes, PowerPoints, and Internet activities to help you study. Every student has different needs, so explore the STUDENT RESOURCES to fi nd the materials best suited to you. bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd iiii 3311//0077//1122 1100::1144 PPMM Confirming pages management Thomas S. Bateman McIntire School of Commerce, University of Virginia Scott A. Snell Darden Graduate School of Business, University of Virginia bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd iiiiii 3311//0077//1122 1100::1144 PPMM Confirming pages management SENIOR VICE PRESIDENT, PRODUCTS & MARKETS KURT L. STRAND VICE PRESIDENT, GENERAL MANAGER, PRODUCTS & MARKETS BRENT GORDON VICE PRESIDENT, CONTENT PRODUCTION & TECHNOLOGY SERVICES KIMBERLY MERIWETHER DAVID MANAGING DIRECTOR PAUL DUCHAM EXECUTIVE BRAND MANAGER MICHAEL ABLASSMEIR EXECUTIVE DIRECTOR OF DEVELOPMENT ANN TORBERT DEVELOPMENT EDITOR II LAURA GRIFFIN EDITORIAL COORDINATOR CLAIRE WOOD MARKETING MANAGER ELIZABETH TREPKOWSKI MARKETING SPECIALIST LIZ STEINER CONTENT PROJECT MANAGER PAT FREDERICKSON BUYER II DEBRA R SYLVESTER INTERIOR DESIGNER MATT DIAMOND COVER DESIGNER KAY LIEBERHERR SENIOR CONTENT LICENSING SPECIALIST JEREMY CHESHARECK PHOTO RESEARCHER ALLISON GRIMES MEDIA PROJECT MANAGER RON NELMS TYPEFACE 10/12 MINION PRO REGULAR COMPOSITOR LASERWORDS PRIVATE LIMITED PRINTER QUAD/GRAPHICS MANAGEMENT, THIRD EDITION Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2011 and 2009. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 QPD/QPD 1 0 9 8 7 6 5 4 3 2 ISBN 978-0-07-802952-3 (student edition) MHID 0-07-802952-X (student edition) ISBN 978-0-07-765027-8 (instructor’s edition) MHID 0-07-765027-1 (instructor’s edition) All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Control Number: 2012942131 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill, and McGraw-Hill does not guarantee the accuracy of the information presented at these sites. www.mhhe.com bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd iivv 3311//0077//1122 1100::1144 PPMM Confirming pages brief tents con part one INTRODUCTION 2 chapter 1 Managing Effectively in a Changing World 2 chapter 2 The Evolution of Management 24 chapter 3 The Organizational Environment and Culture 40 part two PLANNING 66 chapter 4 Ethics and Corporate Responsibility 66 chapter 5 Strategic Planning and Decision Making 90 chapter 6 Entrepreneurship 120 part three ORGANIZING 148 chapter 7 Organizing for Action 148 chapter 8 Managing Human Resources 176 chapter 9 Managing Diversity and Inclusion 202 part four LEADING 228 chapter 10 Leadership 228 chapter 11 Motivating People 254 chapter 12 Teamwork 278 chapter 13 Communicating 300 part five CONTROLLING 324 chapter 14 Managerial Control 324 chapter 15 Innovating and Changing 350 v bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd vv 3311//0077//1122 1100::1144 PPMM Confirming pages contents part one 4.2 |  Technology is Continuously Advancing 17 INTRODUCTION 2 4.3 |  Knowledge is a Critical Resource 18 4.4 |  Collaboration Boosts Performance 18 4.5 |  Diversity Needs to be Leveraged 19 CHAPTER 1 MANAGING EFFECTIVELY SOURCES OF COMPETITIVE ADVANTAGE 20 IN A CHANGING WORLD 2 5.1 |  Innovation Keeps You Ahead of Competitors 20 5.2 |  Quality Must Continuously Improve 20 THE FOUR FUNCTIONS OF MANAGEMENT 4 5.3 | S ervices Must Meet Customers’ Changing Needs 21 1.1 |  Planning Helps You Deliver Value 5 5.4 | Do It Better and Faster 22 1.2 |  Organizing Resources Achieves Goals 6 5.5 |  Low Costs Help Increase Your Sales 22 1.3 |  Leading Mobilizes Your People 7 5.6 |  The Best Managers Deliver All Five Advantages 23 1.4 |  Controlling Means Learning and Changing 8 1.5 |  Managing Requires All Four Functions 9 INDRA NOOYI OF PEPSICO PUSHES FOR SUSTAINABLE, FOUR DIFFERENT LEVELS OF MANAGERS 9 “HEALTHIER” GROWTH 10 2.1 |  Top Managers Strategize and Lead 9 TAKE CHARGE OF YOUR CAREER // FIND YOUR PASSION! 15 2.2 |  Middle Managers Bring Strategies to Life 11 2.3 |  Frontline Managers are the Vital Link to Employees 12 2.4 |  Team Leaders Facilitate Team Effectiveness 12 CHAPTER 2 THE EVOLUTION 2.5 |  Three Roles That All Managers Perform 13 OF MANAGEMENT 24 MANAGERS NEED THREE BROAD SKILLS 14 ORIGINS OF MANAGEMENT 26 3.1 | Technical Skills 14 3.2 |  Conceptual Decision Skills 14 THE EVOLUTION OF MANAGEMENT 27 3.3 |  Interpersonal and Communication Skills 14 CLASSICAL APPROACHES 28 MAJOR CHALLENGES FACING MANAGERS 15 2.1 |  Systematic Management 28 4.1 |  Business Operates on a Global Scale 16 2.2 | Scientific Management 28 2.3 |  Bureaucracy 31 2.4 |  Administrative Management 32 2.5 |  Human Relations 33 CONTEMPORARY APPROACHES 35 3.1 |  Sociotechnical Systems Theory 35 3.2 |  Quantitative Management 35 3.3 |  Organizational Behavior 36 vi bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd vvii 3311//0077//1122 1100::1144 PPMM Confirming pages 3.4 |  Systems Theory 36 MODERN CONTRIBUTORS 37 AN EYE ON THE FUTURE 39 TAKE CHARGE OF YOUR CAREER // USING HISTORY TO YOUR ADVANTAGE! 34 THE GREENEST COMPANIES WORLDWIDE 38 CHAPTER 3 THE ORGANIZATIONAL ENVIRONMENT AND CULTURE 40 THE MACROENVIRONMENT 42 4.4 |  Three Criteria Help You Choose the Best Approach 59 1.1 |  Laws and Regulations Protect and Restrain Organizations 42 CULTURE AND THE INTERNAL ENVIRONMENT 1.2 |  The Economy Affects Managers and OF ORGANIZATIONS 59 Organizations 43 5.1 |  What is an Organization Culture? 59 1.3 |  Technology is Changing Every Business 5.2 |  Companies Give Many Clues About Their Culture 61 Function 45 5.3 |  Four Different Types of Organizational Cultures 62 1.4 |  Demographics Describe Your Employees and 5.4 |  Cultures Can be Leveraged to Meet Challenges in the Customers 45 External Environment 64 1.5 |  Social Values Shape Attitudes Toward TOMS SHOES MAKES IMPACT WITH ITS “ONE- Your Company and Its Products 47 FOR-ONE” MODEL 46 THE COMPETITIVE ENVIRONMENT 48 TAKE CHARGE OF YOUR CAREER // FIGURE OUT THE 2.1 |  Rivals Can be Domestic or Global 48 ORGANIZATIONAL CULTURE, AND FAST! 62 2.2 |  New Entrants Increase When Barriers to Entry are Low 49 part two 2.3 | B uyers Determine Your Success 50 PLANNING 66 2.4 |  Products Can be Substitutes or Complements of Yours 51 2.5 |  Suppliers Provide Your Resources 52 CHAPTER 4 ETHICS AND CORPORATE KEEP UP WITH CHANGES RESPONSIBILITY 66 IN THE ENVIRONMENT 52 It’s a Big Issue 68 3.1 |  Environmental Scanning Keeps You Aware 53 It’s a Personal Issue 70 3.2 |  Scenario Development Helps You Analyze the FIVE PERSPECTIVES SHAPE YOUR ETHICS 71 Environment 53 1.1 | Universalism 72 3.3 |  Forecasting Predicts Your Future Environment 54 1.2 | Egoism 72 3.4 |  Benchmarking Helps You Become Best in Class 54 1.3 | Utilitarianism 73 RESPONDING TO THE ENVIRONMENT 54 1.4 | Relativism 74 4.1 |  Adapt to the External Environment 54 1.5 | Virtue Ethics 74 4.2 | Influence Your Environment 56 BUSINESS ETHICS MATTER 75 4.3 |  Change the Boundaries of the Environment 58 2.1 | Ethical Dilemmas 75 2.2 | Ethics and the Law 76 CONTENTS vii bbaatt22995522XX__ffmm__ii--xxvvii..iinndddd vviiii 3311//0077//1122 1100::1144 PPMM