JWCL198_FM_i-xxix.indd Page iv 11/5/09 1:56:12 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm JWCL198_FM_i-xxix.indd Page i 11/5/09 1:56:11 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm Exploring Management Second Edition John R Schermerhorn, Jr John Wiley & Sons, Inc JWCL198_FM_i-xxix.indd Page ii 11/6/09 11:32:27 PM user-s162 VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR DEVELOPMENTAL EDITOR ASSISTANT EDITOR ASSOCIATE DIRECTOR OF MARKETING ASSISTANT MARKETING MANAGER MARKETING ASSISTANT CREATIVE DIRECTOR INTERIOR DESIGNER PRODUCTION MANAGER SENIOR DESIGNER SENIOR PRODUCTION EDITOR EXECUTIVE MEDIA EDITOR ASSOCIATE MEDIA EDITOR PHOTO DEPARTMENT MANAGER PHOTO RESEARCHER SENIOR EDITORIAL ASSISTANT ILLUSTRATION EDITOR PRODUCTION MANAGEMENT SERVICES COVER PHOTO George Hoffman Lisé Johnson Susan McLaughlin Carissa Marker Doshi Amy Scholz Diane Mars Luella Finley Harry Nolan Brian Salisbury Dorothy Sinclair Maddy Lesure Sandra Dumas Allison Morris Elena Santa Maria Hilary Newman Teri Stratford Sarah Vernon Anna Melhorn Ingrao Associates ©Marina Filipovic Marinshe, www.marinshe.com This book was typeset in 10/12 Sabon Regular at Aptara®, Inc and printed and bound by Courier/ Kendallville The cover was printed by Courier/Kendallville The paper in this book was manufactured by a mill whose forest management programs include sustained yield harvesting of its timberlands Sustained yield harvesting principles ensure that the number of trees cut each year does not exceed the amount of new growth This book is printed on acid-free paper Copyright © 2010, 2007 by John Wiley & Sons, Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600 Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008 Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year These copies are licensed and may not be sold or transferred to a third party Upon completion of the review period, please return the evaluation copy to Wiley Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel Outside of the United States, please contact your local representative ISBN 13 978-0470-16964-3 ISBN 13 978-0470-55671-9 Printed in the United States of America /Volumes/JWCL-New/JWCL198/JWCL198-fm JWCL198_FM_i-xxix.indd Page iii 11/5/09 1:56:12 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm I once again dedicate this book to the person who lovingly helps me explore and appreciate life’s wonders: My wife, Ann JWCL198_FM_i-xxix.indd Page iv 11/5/09 1:56:12 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm JWCL198_FM_i-xxix.indd Page v 11/6/09 11:32:44 PM user-s162 /Volumes/JWCL-New/JWCL198/JWCL198-fm About the Author Dr John R Schermerhorn Jr is the Charles G O’Bleness Professor Emeritus of Management in the College of Business at Ohio University where he teaches undergraduate and MBA courses in management, organizational behavior, and Asian business He also serves the university as Director of the Center for Southeast Asian Studies He earned a PhD degree in organizational behavior from Northwestern University, after receiving an MBA degree (with distinction) in management and international business from New York University, and a BS degree in business administration from the State University of New York at Buffalo Highly dedicated to instructional excellence and serving the needs of practicing managers, Dr Schermerhorn continually focuses on bridging the gap between the theory and practice of management both in the classroom and in his textbooks He has won awards for teaching excellence at Tulane University, The University of Vermont, and Ohio University, where he was named a University Professor, the university’s leading campus-wide award for undergraduate teaching He also received the excellence in leadership award for his service as Chair of the Management Education and Development Division of the Academy of Management Dr Schermerhorn’s international experience adds a unique global dimension to his teaching and textbooks He holds an honorary doctorate from the University of Pécs in Hungary, awarded for his international scholarly contributions to management research and education He has also served as a Visiting Professor of Management at the Chinese University of Hong Kong, as on-site Coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and as Kohei Miura visiting professor at the Chubu University of Japan Presently he is Adjunct Professor at the National University of Ireland at Galway, a member of the graduate faculty at Bangkok University in Thailand, Permanent Lecturer in the PhD program at the University of Pécs in Hungary, and advisor to the LaoAmerican College in Vientiane, Laos An enthusiastic scholar, Dr Schermerhorn is a member of the Academy of Management, where he served as chairperson of the Management Education and Development Division Educators and students alike know him as author of Management 10e (Wiley, 2010) and senior co-author of Organizational Behavior 10e (Wiley, 2009) His many books are available in Chinese, Dutch, French, Indonesian, Portuguese, Russian, and Spanish language editions Dr Schermerhorn has also published numerous articles in publications such as the Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Organizational Dynamics, Journal of Management Education, and the Journal of Management Development Dr Schermerhorn is a popular guest speaker at colleges and universities His recent student and faculty workshop topics include innovations in business education, teaching the millennial generation, global perspectives in management, and textbook writing and scholarly manuscript development v JWCL198_FM_i-xxix.indd Page vi 11/5/09 1:56:13 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm Dear Reader: My career as a management educator began many years ago The journey has evolved into one of continuous exploration and tremendous learning, as I benefit from my work both in the classroom and with students and colleagues around the world I believe the study of management is also an exploration, a daily one, whether we are instructors or students After all, management is part of our everyday lives—at work, at school, at home, and even at leisure It is ever present as we sort through the challenges of multiple responsibilities, distant horizons, constantly changing opportunities, great potential, and the wonders of a diverse global community Perhaps these words from T S Eliot’s poem Little Gidding best describe the quest we all share: We shall not cease from exploration And the end of all our exploring Will be to arrive where we started And know the place for the first time The study of management is an ongoing journey, one full of enrichment and exploration But in the end we return to application, trying to use what we have learned through experience to better our lives and those of others This is really what this book, Exploring Management, Second Edition, is all about Take a minute to look at the book’s cover, browse through the book’s overall design, and just flip through some of the pages Does the art inspire you and the design attract you to consider not only what’s ahead in the book and in your management course, but also in your own life? I hope so Because after all, how well we manage our lives, careers, and organizations can make a big difference in our increasingly complex world Please join me in using Exploring Management, Second Edition, and your management course as great learning opportunities, ones that can have life-long career and personal benefits I believe you’ll find the experience rich with the potential for lasting personal and professional value Have a great course and learning experience Sincerely, vi About the Author JWCL198_FM_i-xxix.indd Page vii 11/5/09 1:56:13 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm Preface What makes Exploring Management, Second Edition, different? I have written Exploring Management, Second Edition, to help students embrace management in the context of their everyday lives, career aspirations, and personal experiences It is designed to meet and engage the new generation of students in their personal spaces, using lots of examples, applications, visual highlights, thoughtprovoking questions, and learning aids to convey the essentials of management My hope is that this book with its special approach and underlying pedagogy will be a useful asset to committed management educators as they work in many unique and innovative ways to enrich the learning experiences of their students • Exploring Management offers a more flexible, topic-specific presentation The first thing you’ll notice is that Exploring Management presents material in a way that meets student preferences for reading and studying “chunks” of material that can be digested in relatively short time periods, much like Internet news reports This is in response to my classroom experiences where I, and my students, find the typical book chapters increasingly cumbersome and awkward to handle in the context of our course designs In Exploring Management students never read more than several pages before hitting a “Study Guide” section that asks and allows them to bring closure to what they have just read in a meaningful way And as users of the first edition confirm, when students can read and achieve closure on a “module” of material they tend to study it better, remember it better, and achieve better on tests and assignments dealing with it What a modular approach means for the instructor is that topics in the book are easily assignable and sized just right for a class session or a class discussion The book covers the traditional planning, organizing, leading, and controlling framework, but everything can be used in any order based on instructor preferences There are many options available for courses of different types, lengths, and meeting schedules, including online and distance learning formats It all depends on what fits best with your course design, learning approaches, and class session objectives • Exploring Management presents an integrated learning design Exploring Management offers an integrated pedagogy Every module opens with a clear visual presentation that helps students understand material right from the beginning An Opening Example highlights an issue or issues relevant to the module and its subtitle, while presenting a brief report on real organizations and people The two-page opening layout includes a Learning Outline presenting major headings as questions and answers This helps students frame their reading and also prepares them for reinforcement provided in the integrated Study Guide at the end of each major section This one-page checkpoint for learning and test preparation allows students to pause, consolidate, and check learning before moving on to the next section The study guide elements include • Rapid Review—bullet-list summary of concepts and points, • Terms to Define—glossary quiz for vocabulary development, vii JWCL198_FM_i-xxix.indd Page viii 11/5/09 1:56:13 PM user-s155 /Volumes/JWCL-New/JWCL198/JWCL198-fm • Be Sure You Can—checkpoint of major learning outcomes for mastery, • Questions for Discussion—questions to stimulate inquiry and prompt class discussions How will Exploring Management, Second Edition, motivate students to learn about management? The fact is that today’s students continuously deal with a wide variety of conflicting demands and distractions As I explore and learn about their world, I find that my teaching methods and instructional materials must constantly evolve That’s why I have taken special care to complement the modular approach of this book with a student-friendly writing style, emphasis on visual learning, inclusion of lots of timely features and examples, and an appealing design to the book’s pages I hope you’ll agree that I am writing and presenting material in ways that come closer to meeting our students in their spaces—rich, varied, colorful, spontaneous and digital • Exploring Management relates concepts to students’ experiences and interests I want students to embrace management in the context of their everyday lives, career aspirations, and personal experiences, and I constantly read and find materials that can this when presented as part of a textbook discussion To make this connection easier and highly visible, Exploring Management includes a number of special features that present additional and timely content reference points in a visually appealing and meaningful way If you flip through the pages of the book, you will find that these features are not only interesting and meaningful to the reader But don’t forget they are also prompts and frames that can be used as opportunities for class and online discussions as well as follow-up individual and team assignments Each chapter includes • Trendsetters–introducing a real person’s experience with the issues being discussed Examples include Ursula Burns, CEO of Xerox and the first African American woman to head a Fortune 500 firm; Evan Williams and Biz Stone, founders of Twitter; and Patricia Karter, founder and head of the small and socially responsible Dancing Deer Baking Co • News Feed–highlighting an actual news story and posing questions in reaction to it Topic examples include “Good and Bad News for Middle Managers,” “Millennials May Need Special Handling,” “Recession a Great Time for Prioritizing,” and “Internet Censorship Spurs Cultural Debate.” • Tips to Remember–offering short reminders and suggestions for how to apply the module content to one’s life and career The tips cover useful and relevant issues such as a “Checklist for Dealing with Ethical Dilemmas,” “How to Succeed in a Telephone Interview,” and “Ins and Outs of Negotiating Salaries.” • Stay Tuned–brief summary of data and facts that stimulate critical inquiry and offer fuel for class discussions and debates Examples include “Diversity Contradictions in Employment Trends,” “Office Romance Policies Vary Widely,” and “Corruption and Bribes Haunt International Business.” • Exploring Management uses a conversational and interactive writing style When writing Exploring Management I knew that to engage today’s students I needed to break away from the textbook norm of communicating as the “sage on stage.”So, I have tried to speak with students the way I in the classroom—conversationally, viii Preface ... the Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Organizational Dynamics, Journal of Management Education, and the Journal of Management Development... /Volumes/JWCL-New/JWCL198/JWCL198-fm Preface What makes Exploring Management, Second Edition, different? I have written Exploring Management, Second Edition, to help students embrace management in the context of their... Aptara®, Inc and printed and bound by Courier/ Kendallville The cover was printed by Courier/Kendallville The paper in this book was manufactured by a mill whose forest management programs include sustained