TwelfTh ediTion Management Richard L. Daft Vanderbilt University Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. 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To my parents, who started my life toward outcomes that I could not understand at the time. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. About the Author Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor and Principal Senior Lecturer in the Owen Graduate School of Management at Vanderbilt Univer­ sity. Professor Daft specializes in the study of organi­ zation theory and leadership; he is a fellow of the Academy of Management and has served on the editorial boards of the Academy of Management Journal, Administrative Science Quarterly, and Journal of Management Education. He was the associate editor­in­chief of Organization Science and served for three years as associate editor of or Administrative Science Quarterly. h Aut Professor Daft has authored or co­authored 14 books, e h of t including Building Management Skills: An Action-First urtesy Approach (with Dorothy Marcic, South­Western, 2014), Co The Executive and the Elephant: A Leader’s Guide for Building Inner Excellence (Jossey­Bass, 2010), The Leadership Experience (South­Western, 2015), Organization Theory and Design (South­Western, 2013), and Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (with Robert Lengel, Berrett­Koehler, 2000). He has also written dozens of scholarly articles, papers, and chapters in other books. His work has been published in Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Strategic Man- agement Journal, Journal of Management, Accounting Organizations and Society, Management Science, MIS Quarterly, California Management Review, and Organizational Behavior Teaching Review. In addition, Professor Daft is an active teacher and consultant. He has taught manage­ ment, leadership, organizational change, organizational theory, and organizational behavior. Professor Daft has served as associate dean, produced for­profit theatrical productions, and helped manage a start­up enterprise. He has been involved in management develop­ ment and consulting for many companies and government organizations, including the National Academy of Science, Oak Ridge National Laboratory, American Banking Association, AutoZone, Aegis Technology, Bridgestone, Bell Canada, Allstate Insurance, the National Transportation Research Board, the Tennessee Valley Authority (TVA), State Farm Insurance, Tenneco, the U.S. Air Force, the U.S. Army, Eli Lilly, Central Parking System, Entergy Sales and Service, Bristol­Myers Squibb, First American National Bank, and the Vanderbilt University Medical Center. v Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. brief Contents Part 1 Introduction to Management 2 1 The World of Innovative Management 2 2 The Evolution of Management Thinking 38 Part 2 The Environment of Management 74 3 The Environment and Corporate Culture 74 4 Managing in a Global Environment 110 5 Managing Ethics and Social Responsibility 150 6 Managing Start-Ups and New Ventures 182 Part 3 Planning 216 7 Planning and Goal Setting 216 8 Strategy Formulation and Execution 248 9 Managerial Decision Making 282 Part 4 Organizing 320 10 Designing Organization Structure 320 11 Managing Change and Innovation 362 12 Managing Human Resources 398 13 Managing Diversity 436 Part 5 Leading 470 14 Understanding Individual Behavior 470 15 Leadership 510 16 Motivating Employees 550 17 Managing Communication 586 18 Leading Teams 620 Part 6 Controlling 658 19 Managing Quality and Performance 658 Appendix: Managing the Value Chain, Web 2.0, and E-Business 697 Glossary 717 Name Index 731 Company Index 749 Subject Index 754 vii Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.