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edition Management Challenges for Tomorrow’s Leaders Pamela S Lewis Queens University of Charlotte Stephen H Goodman University of Central Florida Patricia M Fandt University of Washington, Tacoma Joseph F Michlitsch Southern Illinois University Edwardsville Management: Challenges for Tomorrow’s Leaders, 5th Edition Pamela S Lewis, Stephen H Goodman, Patricia M Fandt, Joseph F Michlitsch VP/Editorial Director: Jack W Calhoun Director of Development/Sr Publisher: Melissa S Acunã Sr Marketing Communications Manager: Jim Overly Manager of Technology, Editorial: Vicky True Executive Editor: John Szilagyi Technology Project Editor: Kristen Meere Developmental Editor: Monica Ohlinger Ohlinger Publishing Services Web Coordinator: Karen Schaffer Sr Marketing Manager: Kimberly Kanakes Production Project Manager: Robert Dreas COPYRIGHT © 2007 Thomson South-Western, a part of The Thomson Corporation Thomson, the Star logo, and South-Western are trademarks used herein under license Printed in the United States of America 08 07 06 05 Student Edition: ISBN 0-324-30259-2 Instructor’s Edition: ISBN 0-324-36085-1 Manufacturing Coordinator: Doug Wilke Production House: Pre-Press Company Incorporated Art Director: Linda Helcher Internal Designer: Grannan Graphic Design, LTD Cover Designer: Grannan Graphic Design, LTD Cover Images: © Picturequest Photography Manager: John Hill Photo Researcher: Susan Van Etten Printer: QuebecorWorld-Dubuque Dubuque, Iowa ALL RIGHTS RESERVED No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution or information storage and retrieval systems, or in any other manner— without the written permission of the publisher Library of Congress Control Number: 2005935616 For permission to use material from this text or product, submit a request online at http://www.thomsonrights.com Thomson Higher Education 5191 Natorp Boulevard Mason, OH 45040 USA For more information about our products, contact us at: Thomson Learning Academic Resource Center 1-800-423-0563 To my family, for your unwavering support of my efforts PSL To Cynthia and Whitney, for the joy you continue to bring into my life each day SHG To my family, friends, and students, for your continuing support and encouragement PMF To my very special people: Jody, Chris, and Carlos JFM About the Authors PAMELA S LEWIS Pamela S Lewis is president of Queens University of Charlotte in Charlotte, N.C Prior to becoming president, Dr Lewis served as the dean of the McColl School of Business at Queens and as dean of the LeBow College of Business at Drexel University in Philadelphia Throughout her career, Dr Lewis has distinguished herself through her commitment to providing innovative and high-quality education Her particular focus has been on increasing community involvement and forging industry and academic partnerships that enhance the relevance and applicability of academic programs Dr Lewis, who holds a Ph.D in strategic planning and international business from the University of Tennessee, has written numerous articles in the areas of strategic planning, international strategy, and entrepreneurship/new venture strategy Dr Lewis also has been active in executive education and consulting, serving as a strategic planning consultant for numerous organizations across a wide variety of industries Dr Lewis serves on the Board of Directors for three public companies—Sonoco Products Company, C&D Technologies, and Charming Shoppes—as well as on the board of numerous not-forprofits such as Presbyterian Hospital, Charlotte Chamber of Commerce, Communities in Schools, Charlotte Museum of History, and YMCA of Greater Charlotte STEPHEN H GOODMAN Stephen H Goodman is an associate professor of management information systems at the University of Central Florida He received his Ph.D in business administration from Pennsylvania State University, where he specialized in operations management and operations research Prior to his doctoral study he received a B.S in aeronautical engineering and an M.B.A., also from Penn State During his academic career, he has taught, researched, and published primarily in production planning and control He has also served as a coauthor of a textbook in the field of production/operations management Currently he has a major teaching and research focus in quality management He is an active member of the Decision Sciences Institute (DSI) and the American Production and Inventory Control Society (APICS), having held offices in each, has engaged in journal review activities, and has conducted professional training classes He has achieved the distinction of Certified Fellow in Production and Inventory Management (CFPIM) from APICS PATRICIA M FANDT Patricia M Fandt is professor emeritus at the Milgard School of Business, University of Washington, Tacoma, a faculty associate in educational leadership at the University of North Carolina at Charlotte, and a director with The Geneva Foundation Dr Fandt earned her doctorate in management and organizational behavior from Texas A&M University in 1986 Throughout her academic career, Dr Fandt has published numerous peer-reviewed articles and books on leadership performance, accountability, team dynamics, and organization change Currently, her research extends from her recently published book The 2nd Language of Leadership and involves the integration of the personality/leadership behavior framework with the impact of change Her undergraduate and graduate teaching is primarily focused on team development, leadership, and organization change, and she has been recognized with awards for teaching and curriculum development excellence Dr Fandt’s industry experience includes a career in marketing as a sales representative with Procter & Gamble, an account manager with Kendall Surgical Corporation, and a regional sales iv About the Authors manager in the surgical division of 3M Corporation She was a flight attendant with Delta Airlines and worked for the Red Cross in Southeast Asia as a dietitian In the consulting arena, Dr Fandt has worked with a broad range of companies in health care, service, and technology industries She consults with several universities on curriculum development and accreditation review JOSEPH F MICHLITSCH Joseph F Michlitsch teaches strategic management in the School of Business at Southern Illinois University Edwardsville (SIUE) and is chair of the Management and Marketing Department He holds a Ph.D in management from the University of Minnesota, an M.B.A from the University of South Dakota, and a bachelor of science degree in economics from South Dakota State University He is licensed to present the Stephen Covey Habits of Highly Effective People workshops at SIUE Dr Michlitsch publishes in the areas of strategy development, strategy implementation, managerial decision making, and the teaching of management Outlets for his work include Strategy & Leadership, Industrial Management, Business Insights, Supervisory Management, Journal of Education for Business, Research in Higher Education, Labor Law Journal, Public Personnel Management, Journal of Technical Writing and Communication, and Perceptual and Motor Skills He also consults in strategy development and the many parts of strategy implementation (organization development, individual development, team building, and communication) Previously, he taught at several colleges in South Dakota and at the University of Minnesota while completing his Ph.D degree He worked with the Planning Department at Monsanto Chemical Company, now Solutia, during one sabbatical leave from SIUE, and during a second leave assisted the director of management consulting at Grace & Company in writing the second edition of a strategy book for practitioners v Brief Contents Part Meeting the Challenges of the 21st Century CHAPTER CHAPTER CHAPTER Management and Managers Evolution of Management Thought 26 Social Responsibility and Ethics 56 Part Planning Challenges in the 21st Century CHAPTER CHAPTER CHAPTER 87 Strategic Management and Planning in a Global Environment 88 Planning in the Contemporary Organization 118 Managerial Decision Making 144 Part Organizing Challenges in the 21st Century CHAPTER CHAPTER CHAPTER CHAPTER 10 CHAPTER 16 CHAPTER 17 401 Organizational Control in a Complex Business Environment 402 Productivity and Quality in Operations 432 Information Technology and Control 464 GLOSSARY 500 ENDNOTES 513 NAME INDEX 541 COMPANY INDEX 543 SUBJECT INDEX 545 vi 289 Communicating Effectively within Diverse Organizations 290 Leading in a Dynamic Environment 318 Exploring Individual Differences and Team Dynamics 342 Motivating Organizational Members 374 Part Control Challenges in the 21st Century CHAPTER 15 183 Organizing for Effectiveness and Efficiency 184 Organizational Design 210 Strategic Human Resource Management 238 Organizational Culture and Change 266 Part Leadership Challenges in the 21st Century CHAPTER 11 CHAPTER 12 CHAPTER 13 CHAPTER 14 Contents Part Meeting the Challenges of the 21st Century CHAPTER Management and Managers Chapter Overview Learning Objectives Facing the Challenge: Can anyone save Nissan Motor Co., Ltd.? Introduction Leaders in Action: The Avon Lady What is Management? What Managers Do Planning Organizing Leading Controlling Role of Managers Interpersonal Roles Informational Roles Decisional Roles Managerial Scope, Levels, and Skills Scope of Responsibility Levels of Management and Relative Importance of Skills Managing in the 21st Century 12 The Internet and Information Technology 12 Increasing Globalization 13 Increasing Diversity 13 Intellectual Capital 14 At the Forefront: Managing in the 21st Century 15 Ethics 15 An Overall Framework 16 Why Study Management? 17 Now Apply It: Are You Ready to Lead in the 21st Century? 18 Implications for Leaders 18 Meeting the Challenge: Carlos Ghosn, Star of Nissan and the Auto Industry 19 Summary 19 Review Questions 20 Discussion Questions 20 Thinking Critically: Debate The Issue 21 Experiential Exercise 21 Ethics: Take A Stand 22 Case: A Day in the Life of Jeremy Jackson 23 Video Case: Timbuk2—The Art of Management 24 CHAPTER Evolution of Management Thought 26 Chapter Overview 27 Learning Objectives 27 Facing the Challenge: “Sony Shock”: Crisis at the Electronics Giant 28 Introduction 28 Environmental Factors Influencing Management Thought 29 Economic Influences 29 At the Forefront: The Golden Goose is a Potato 29 Social Influences 30 Leaders in Action: Publix’s New Flavor 31 Political Influences 31 Technological Influences 32 Global Influences 32 Schools of Management Thought 33 Classical Perspective 33 Behavioral Perspective 39 Now Apply It: Theory X and Theory Y 41 Quantitative Perspective 42 Systems Perspective 43 Contingency Perspective 44 Information Technology and Management Style 45 Future Issues: Diversity, Globalization, and Quality 47 Meeting the Challenge: Sony Makes an Historic Leap 48 Implications for Leaders 48 Summary 49 Review Questions 50 vii Contents Discussion Questions 50 Thinking Critically: Debate The Issue 51 Experiential Exercise 51 Ethics: Take A Stand 52 Case: Leon Neon 53 Video Case: Sunshine Cleaning Systems, JIAN, and Archway Cookies—Evolution of Management Thought 54 CHAPTER Social Responsibility and Ethics 56 Chapter Overview 57 Learning Objectives 57 Facing the Challenge: General Electric: Social Responsibility and Ethics 58 Introduction 58 Organizational Stakeholders in a Global Environment 58 Social Responsibility 60 Premises of Corporate Social Responsibility 60 Perspectives of Social Responsibility 61 The Four Faces of Social Responsibility 64 Social Responsibility Approaches 65 Social Responsibility in the Ethics 67 21st Century 66 Understanding Business Ethics 67 Leaders in Action: Cleaning Up Adelphia Communications 68 Managerial Guidelines for Ethical Dilemmas 70 Now Apply It: Ethics in the Workplace 72 Fostering Improved Business Ethics 72 At the Forefront: Guides to Organization Behavior 74 Does Socially Responsible and Ethical Behavior Pay? 77 Implications for Leaders 77 Meeting the Challenge: Social Responsibility, Ethics, and Profits at GE 78 Summary 78 Review Questions 79 Discussion Questions 80 Thinking Critically: Debate The Issue 81 Experiential Exercise 81 Ethics: Take A Stand 82 Case: Cuttinng Jobs at General Motors 83 Video Case: Organic Valley—An Exercise in Social Responsibility 84 viii Part Planning Challenges in the 21st Century 87 CHAPTER Strategic Management and Planning in a Global Environment 88 Chapter Overview 89 Learning Objectives 89 Facing the Challenge: Changes at HewlettPackard 90 Introduction 90 Strategic Management and Strategic Planning 90 Strategic Analysis: Assessment in a Global Environment 92 Assessing the Mission of an Organization 92 Now Apply It: Setting Mission and Strategic Goals 93 At the Forefront: The Future “Phone Company” 94 Conducting an External Environmental Analysis 95 Conducting an Internal Analysis 102 Strategy Formulation: Achieving A Competitive Advantage 104 Casting or Reaffirming the Organization’s Vision and Mission 104 Setting Strategic Goals 104 Leaders in Action: Andrew Grove of Intel 105 Identifying Strategic Alternatives 106 Evaluating and Choosing Strategy 108 Strategy Implementation: Focusing on Results 109 Evaluation and Control: Achieving Effectiveness and Efficiency 109 Feedforward Controls 110 Feedback Controls 110 Information Technology and Strategic Planning 110 Meeting the Challenge: Focus and Implementation at Hewlett-Packard 111 Implications for Leaders 111 Summary 112 Review Questions 112 Discussion Questions 113 Thinking Critically: Debate The Issue 113 Experiential Exercise 113 Ethics: Take A Stand 114 Case: Developing a Strategic Plan for The Convenience Stop 115 Contents Video Case: Kropf Fruit Company— Strategic Management and Planning in a Global Environment 116 CHAPTER Planning in the Contemporary Organization 118 Chapter Overview 119 Learning Objectives 119 Facing the Challenge: Can Motorola Survive? 120 Introduction 120 Managerial Planning 120 What is Planning? 121 At the Forefront: Is Failing to Plan Planning to Fail? 121 Why Should Managers Plan? 122 Now Apply It: Developing a Professional Development Plan 123 Where Should Planning Begin? 124 Strategic And Operational Planning 126 Strategic Planning 126 Operational Planning 128 Contingency Planning for Changing Environments 133 Leaders in Action: Ann Mulcahy: Turnaround at Xerox 134 The Impact of Information Technology on Planning 134 Facilitating the Planning Process 135 Barriers to Effective Planning 135 Overcoming the Barriers to Planning 135 Implications for Leaders 136 Meeting the Challenge: Ed Zander Has a Plan For Motorola 137 Summary 137 Review Questions 138 Discussion Questions 138 Thinking Critically: Debate The Issue 139 Experiential Exercise 139 Ethics: Take A Stand 140 Case: TIXtrader.com 141 Video Case: The Vermont Teddy Bear Company, Inc.—Planning in the Contemporary Organization 142 CHAPTER Managerial Decision Making 144 Chapter Overview 145 Learning Objectives 145 Facing the Challenge: Goodbye Cypress Gardens 146 Introduction 146 Sources of Organizational and Entrepreneurial Decisions 146 At the Forefront: Danger Drives Demand for Armored-Car Makers 148 Steps in the Decision-Making Process 148 Identifying Opportunities and Diagnosing Problems 149 Leaders in Action: Nike Executive Seizes the Moment 150 Identifying Objectives 151 Generating Alternatives 151 Now Apply It: Assessing Your DecisionMaking Skills 152 Evaluating Alternatives 153 Reaching Decisions 153 Choosing Implementation Strategies 153 Monitoring and Evaluating Feedback 154 Models of Decision-Making 155 Rational-Economic Decision Model 155 Behavioral Decision Model 157 Fostering Quality in the Decision-Making Process 159 Group Considerations in Decision Making 159 Participative Decision Making 159 Advantages and Disadvantages of Participative Decision Making 162 Techniques for Enhancing the Quality of Participative Decision Making 163 Classifying Decision Situations 165 Strategic Decision-Making Tools 166 Strategy Selection: The Strategic Decision-Making Matrix 166 Evaluation of Portfolios 167 Ethical and Social Implications in Decision Making 172 Information Technology and the DecisionMaking Tools 173 Implications for Leaders 173 Meeting the Challenge: Hello Cypress Gardens Adventure Park 174 Summary 174 Review Questions 175 Discussion Questions 176 Thinking Critically: Debate The Issue 176 Experiential Exercise 177 Ethics: Take A Stand 177 ix www.downloadslide.net Endnotes 27 “Microsoft to Blend Desktop Computing, Global Networking,” Orlando Sentinel, 22 July 1996, B5 28 “Koop Slammed for Corporate Link in Latex-Glove Flap,” Orlando Sentinel, 30 October 1999, C10; “Former Surgeon General Attacked for Web Site,” Orlando Sentinel, September 1999, A7 29 “The Strategic Value of EDI,” I/S Analyzer (August 1989) 30 D Greising and M O’Neal, “Blueprint for the Future,” Orlando Sentinel, 26 February 2005, C1ff 31 “Invoice? What’s an Invoice?” BusinessWeek, 10 June 1996, 110–112 32 “Welcome to the Revolution.” 33 L Radosevich, “United Nations Launches Worldwide Network,” Computerworld, 24 October 1994, 64 34 “Information Technology Special Report,” Fortune (Autumn 1993) 15 35 T L Friedman, The World Is Flat (New York: Farrar, Straus and Giroux, 2005), 36–37 36 “The Race to Rewire,” Fortune, 19 April 1993, 42–61 37 “Quake Tosses L.A Around: Buildings, Roads Fall in Tremblers Onslaught,” Orlando Sentinel, 18 January 1994, A1ff 38 S Armour, “Worried Workers Turn to Telecommuting,” USA Today On-line, 17 October 2001 39 J Jackson, “Flower, Fruit Companies Smell Success on Web,” Central Florida Business Report, June 1999, 18–19; E Eldrige, “GM Pursues Com Goals,” USA Today, 11 August 1999, 6B; D Levy, “Superstores Seek Online Customers,” USA Today, 16 March 1999, 3B; “Sears Puts Appliances Online,” Orlando Sentinel, 13 May 1999, B1; “Home Depot Targets Internet,” Orlando Sentinel, March 1999, B1 40 “Quarterly Retail E-Commerce Sales,” U.S Census Bureau News, 29 May 2005 41 “Dell Clicks with Buyers by Deleting Middlemen,” Orlando Sentinel, 22 June 1999, B1ff 42 S Nathan, “Defining the Seller in On-Line Market,” USA Today, 26 August 1999, 3B 43 C Wilder, “E-Commerce—Old Line Moves On-line,” Information Week, 11 January 1999; S Kalin, “Conflict Resolution,” CIO, February 1998 44 J Niccolai, “eBay Buys Shopping.com for $620M,” Computerworld Online, June 2005; “ebay CEO Ventures a Bid—Wins Big,” Orlando Sentinel, June 1999, H8 45 Turban and Aronson, Decision Support Systems and Intelligent Systems 46 “Ant-Sized Robots Designed to Fix, Inspect Plants,” Orlando Sentinel, 22 June 1999, B1 47 D Kohn, “Camera Films on Location—in Patient’s Esophagus,” Orlando Sentinel, May 2005, C1ff 48 G K Shaw, “Mars Rover Goes Strong on 1st Birthday,” Orlando Sentinel, January 2005, A6 49 “Center Devoted to Robotic Revolution,” Orlando Sentinel, 21 August 1996, B1ff 50 “Welcome to the Revolution.” 51 D Schuler, “Social Computing,” Communications of the ACM, Special Issue (January 1994): 28–29 52 “Welcome to the Revolution.” 53 “Fast Processor,” USA Today, 24 February 1999, 1B; “Pentium III Breaks Speed Record,” Orlando Sentinel, 24 February 1999, B7; “Faster Than a Speeding Pentium: Latest Is Here,” Orlando Sentinel, 18 May 1999, B5 54 “Intel Rolls Out Pentium 4,” USA Today On-line, 20 November 2000; “Intel Unveils Pentium Chip,” USA Today On-line, 28 June 2000 55 C Cobbs, “Speeding Up: Moore’s Law Has Ruled Computers for 40 Years,” Orlando Sentinel, 19 April 2005, C1ff 56 K Maney, “Beyond the PC: Atomic QC,” USA Today, 14 July 1999, 1Bff 57 “Another State Opts to Sell Income Data,” Orlando Sentinel, June 1999, B5 58 “Privacy Rules Are Set by Bank of America,” Orlando Sentinel, 12 June 1999, C10 59 “Another State Opts to Sell Income Data.” 539 www.downloadslide.net This page intentionally left blank www.downloadslide.net Name index A Atwal, Peter, 482 B Barnard, Chester, 40, 42 Bezos, Jeff, 12, 93, 100, 273 Boone, Garrett, 271 Bowen, H R., 60–61 Brandon, David, 250–251 Breen, Edward, 15, 228 Brown, John, 228 Buescher, Kent, 146, 148, 153–154, 174 Buffet, Warren, 326 Burton, James, 381 C Ghosn, Carlos, 3, 4, 12, 19 Gilbreth, Frank, 35 Gilbreth, Lillian, 35 Glenn, Michael, 300 Goldberg, Robin, 237 Grady, Tricia, 482–483 Grove, Andrew, 12, 105 H Heaton, John, 332 Hurd, Mark, 111 Hutchinson, Chad, 29 I Idei, Nobuyuki, 28 Immelt, Jeffrey, 3, 15, 58, 78 Ishikawa, Kaoru, 454 Chenault, Kenneth, 335 Chung Mong Koo, Conseil, Dominique Nils, 281 Cooper, Cynthia, 76 Covey, Stephen, 309 Crenshaw, William, 31 Crosby, Philip, 454 J D Katz, Jonathan, 295 Kelleher, Herb, 12, 93, 122, 134 Kerr, Steven, 376 Kilbe, Chris, 287 Koop, C Everett, 484 Kozlowski, Dennis, 15, 16, 201 Krawcheck, Sally, 15 Kux, Barabara, 124 Dattner, Ben, 325 Dell, Michael, 221 Deming, W Edwards, 47, 453–454 DiCicco, Tony, 357 Dwight, Mark, 24–25 Jager, Dirk, 174, 186 Janis, Irving, 163 Jung, Andrea, 3, 5, 12 Juran, Joseph, 454 K Mike, Chris, 147, 150 Mintzberg, Henry, Mulcahy, Ann, 3, 134, 324 Mundo, Juan, 148 N Neeleman, David, 240, 258, 305 Novak, David, 376 O Ollila, Jorma, 344 Oord, Bob van den, 314–315 Ouchi, William, 47 P Palmisano, Sam, 212, 231 Paterno, Joe, 70 Pelka, John, 482 Perry, William, 151 Porter, Michael, 100, 107 R Rechelbacher, Horst, 274 Reinemund, Steven, 3, 200 Rigas, John, 68 Rigas, Timothy, 68 Rodriguez, Julie, 306, 307 Rowley, Coleen, 77 S Fayol, Henri, 36 Feigenbaum, Armand, 47, 454 Fernandes, Donna, 340–341 Fiorina, Carly, 90 Foleman, Daniel, 333 Follett, Mary Parker, 5, 39 Lafley, A G., 174, 204 Lay, Kenneth, 16, 76 Lee, Randy, 141 Leon, Jose, 53 Lewin, Kurt, 277 Lucid, Shannon, 455 Lutz, Robert, 13 Schultz, Howard, 12 Schweizer, Louis, Scrushy, Richard, 16 Semier, Ricardo, 197 Simon, Herbert, 165 Skilling, Jeffrrey, 16 Smith, Adam, 191 Sortino, John, 142 Stewart, Martha, 15 Stewart, Thomas, 14 Stringer, Howard, 48 Swan, Robert, 325–326 Swartz, Mark, 16 G M T Galvin, Christopher, 120 Gates, Bill, 93, 164, 482 Gault, Robert G., Jr., 158 Gerstner, Lou, 153, 267 Mak, Paul, 393 Mayo, Elton, 39–40 McBride, Jay, 235 McGregor, Douglas, 40 Taylor, Frederick Winslow, 34–35 Thompson, Bob, 173 Thornton, Kathy, 454 Tindell, Kip, 270 E Ebebrs Bernard, 15 F L 541 www.downloadslide.net Name Index U Urda, Christopher M., 76 W Wagoner, Rick, 83 Walton, Sam, 93 Watkins, Sherry, 76 Weber, Max, 37–38 542 Welch, Jack, 3, 12, 58, 323 Wheeler, Maureen, 236 Wheeler, Tony, 236 Whitman, Meg, 3, 12, 213, 320, 337, 487 Wittman, Vanessa, 68 Woodward, Joan, 45 Y Yusem, Mike, 209 Z Zander, Edward, 120, 137 Zingarelli, David, 236 www.downloadslide.net Company Index A Adelphia Communications, 68 AES, 197–198 Allscript Corporation, 413–414 Amazon.com, 4, 12, 15, 100, 273 American Express, 99–100, 335, 485 American Greetings, 193 ANC Rental, 107 Apple Computer, 147, 228, 489 Archway Cookies, 54–55 ArtSource, 461 Aveda, 268, 274, 275, 281 Avis, 94 Avon Products, 3, 5, 12, 15 B Bank of America, 194 Barnes & Noble, 102 Bausch and Lomb Company, 165 Bayer Corporation, 147 Baystate Health System, 252 Beacon Cleaners, 178–179 Beaver Street Fisheries, 475 Berner Foods, 404, 405, 426 B J Communications, Inc., 63 BMW, 222 Boeing Corporation, 107 Borders Books, 102 Boston Consulting Group (BCG), 167 Bristol Technology, 74 British Petroleum (BP), 62 Buffalo Zoo, 227, 340 Burger King Restaurants, 151, 153, 173 Burton Snowboards, 252 Citigroup, 77 Clariant, 217 Coca-Cola Company, 63, 147, 150 Cognizant Technology Solutions, 243 Colt Manufacturing Company, 173 Compaq, 32, 38 Container Store, The, 243, 269, 270 CSI Armoring, 148 Cypress Gardens, 146, 147, 148, 151, 153–154, 158, 174 D DaimlerChrysler, 15 Darden Restaurants, 169 DDB Worldwide Communications Group, 252 De Beers, 63 Dell Computer, 221, 486 Denver International Airport, 158 Digital Equipment Company (DEC), 220 Dominos, 251 Duracell, 147 E H HealthSouth, 16 Hershey Foods Corp., 421 Hewlett-Packard (HP), 90, 111, 158 Home Depot, 30, 486 Honda, 62, 63, 66 Hyundai Motor Co., I IBM, 13, 102, 153, 212, 216, 221, 231, 267 IDEO Product Development, 221 Ikea, 222 Intel Corporation, 12, 105 International Organization for Standardization (ISO), 453 J JetBlue, 240, 258, 259, 305 JIAN Corporation, 54–55 Johns Manville, 65–66 Jones Studio, Inc., 63 K eBay, Inc., 3, 12, 15, 213, 320, 337, 487 Enron, 16, 57, 75, 77, 99 Epic Divers and Marine, 307 Kellogg's, 218 Kmart, 31 Krispy Kreme, 77 Kropf Fruit Company, 116–117 F L Federal Aviation Administration (FAA), 151, 408, 418 FedEx, 300, 329 Florida Turnpike Enterprise, 147 Ford Motor Company, 15, 62, 63, 66, 95, 147 Le Meridien Hotels, 316 Lenovo Group Ltd., 13 Leon Neon Company, 53 Levi Strauss, 272 Lexus, 63, 108 Limited, The, 189 Lincoln Electric, 327, 329 LINPAC Plastics, 413 Lonely Planet, 236–237 Lowes, 30 C G CalPERS, 381 Canadian National Railway Company, 218 Cannondale, 372–373, 430–431, 498–499 Carolina Carpets, 235 Cinnabra, Inc., 295 Cisco Systems, 218 CitiBank, 15 Gateway Computers, 486 General Dynamics, 75 General Electric (GE), 3, 12, 13, 15, 58, 62, 63, 78, 102, 169, 171, 172 General Mills, 122, 124 General Motors (GM), 30, 83, 173, 221–222 Gibson Musical Instruments, 487 Goldman Sachs, 327, 328 M Machado and Silvetti Associates, Inc., 208–209 Manville Corporation, 66 Mary Kay Cosmetics, 66, 272, 393 Mattel, 150 543 www.downloadslide.net Company Index MBNA Corporation, 252 McDonald's, 66, 147 MCI, 154 Merck & Company, 75 Merck Pharmaceutical, 361 Microsoft Corp., 13, 164, 218 Mills-Pride Company, 165 Motorola, 120, 137, 424, 429 N NASA, 454–455 National Transportation Safety Board (NTSB), 418 Network Appliance Inc., 252, 272 Next Door Food Store, 180–181 Nike, 31, 147, 150 Nissan Motor Co., 3, 4, 12, 15, 19, 63 Nokia, 344, 365 O One World Health, 63 Organic Valley, 84–85 Original Penguin, 287 Orvis Company, 252 P Peapod, 461–462 People's Bank, 63 PepsiCo., 3, 15, 127, 147, 200, 216, 225, 264–265, 376 Perry Ellis International, 287 P.F Chang's China Bistro, 399–400 Procter and Gamble (P&G), 186, 204, 225, 345 Progress Energy, 256 Publix, 31 R T Rand Corporation, 164 RCA, 13 Reebok, 222 Remy International, 485 Renault, 12 Renault-Nissan, 15, 19 Resorts Limited, 314–315 Royal Dutch/Shell, 134 Running Room, 272 Target Laser & Machining, 442 Target Stores, 63 TCL Corp., 13 TDIndustries (TDI), 292, 306, 310 Thomson, 13 TigerEyeTech, 370 Timbuk2, 24–25 TIXtrader.com, 141 3M Corporation, 147, 154 Torino Organizing Committee (TOROC), 466, 491 Toyota, 62, 63, 66, 227 Trammel Crow Residential, 424 Trilogy, 273 Tyco International, 15, 16, 201, 228 S Safe Haven House, 496–497 Safeway, 306 SAP Americas, 130 Sargento Foods, Inc., 285–286 SAS Institute Incorporated, 252 Saturn Motor Company, 154 Schwinn Bicycle Company, 166 Semco, Inc., 197, 230 Shell Oil Co., 63 Siemens Company, 133 Society of Professional Journalists, 73 Sony Corporation, 28, 32, 48 Southwest Airlines, 12, 74, 100, 103, 122, 134, 272 Starbucks, 12, 15, 63, 103, 272 Stryker Corporation, 228 Summit Industrial Products, 434, 446 SunFresh of Florida Marketing Cooperative, 29 Sunshine Cleaning Systems, 54–55 U Universal Studios, 158 UPS (United Parcel Service), 46–47, 192, 243, 256 U.S Postal Service, 147 V Vermont Teddy Bear Company, 142–143 W Wal-Mart, 15, 31, 60, 62, 103, 104, 258 Walt Disney Company, 173, 269 WorldCom, 16, 76 X Xerox, 3, 103–104, 134 Xtek, Inc., 438, 439 Y Yum! Brands, 376, 394 544 www.downloadslide.net Subject Index 360-degree feedback, 249 9/11 terrorist attacks, 12 A Ability, 355–56 Accommodation, 66 Accountability, 198, 199–200 Achievement, need for, 381 Acquired-needs model, 381–82 Action learning, 273 Activity ratios, 423–24 Adjourning stage, of teams, 365 Administrative management, 36–37 Affiliation needs, 378–79, 382 Affirmative action, 255 Age groups, changes in, 97 Aggregate planning, 443–44 Alternatives evaluating, 153 generating, 151, 153 Application form, 244 Appraisal costs, 451 Appraisal methods, 249 Artifacts, 271–73 Artificial intelligence (AI), 487–88 Asbestos, 65–66 Assembly-line systems, 437 Assessment centers, 245 Assets, 422 Attitudes, 352–53 Authority, 198 Barnard's theory of, 42 defined, 323 delegation of, 198–203 hierarchy of, 37 types of, 37–38 Automobile manufacturers, Japanese, 47–48 Autonomy, 188–89 Avoidance learning, 386–87 B B2B, 98 B2C, 98 Background checks, 244–45 Balanced Scorecard (BSC), 133 Balance sheets, 422 BCG matrix, 167–69 Behavioral-anchored rating scales (BARSs), 249 Behavioral decision model, 157–58 Behavioral perspective, on management, 39–42 job design and, 192–93 Behavior focus, 323 Behavior modification, 386–88 Benchmarking, 452–53 Benefits, 251–53 "Best and Worst Managers of the Year" (Newsweek), Best-cost provider strategy, 108 Big Five personality traits, 350 Blogs, 12–13 Body motion, 298 Bona fide occupational qualification, 254 Boot camps, 273–74 Bottom-up planning, 125 Boundary-spanning role, 226 Bounded rationality, 157–58 Brainstorming, 153, 164 Brand recognition, building global, 123 Brick-and-mortar business, use of information technology by, 12 Budgets, 130 Bureaucratic control, 419–20 Bureaucratic management, 37–39 Business environment, changes in, 467–72 Business ethics, 67–70 fostering, 72–77 Business-level strategy, 126, 127 Business portfolio matrix, 167–73 Business strength computations, 171 factors contributing to, 170 C Capital customer, 14 human, 14 intellectual, 14–15 structural, 14 Cash cows, 168 Cash hogs, 169 Cell phones, 32 Centralized decision making, 228 Central tendency, 249 Ceremonial duties, of managers, Ceremonies, 271–72 Chain of command, 195–96 Change framework for, 276–77 introduction to, 268–69 managing, 267–68 organizational, 275–80 of organizational culture, 275 phases of planned, 277–80 resistance to, 135 targets for, 276 Channels, communication, 295 Character, 77 Charismatic authority, 37–38 China, globalization and, 13 Civil Rights Act, 254, 255 Clan control, 419–20 Classical perspective, of management, 33–39 administrative management, 36–37 bureaucratic management, 37–39 chain of command and, 195–96 job design and, 191 scientific management, 34–36 Closed systems, 43–44 Codes of ethics, 73–75 Coercive power, 324–25 Cognitive dissonance, 353 Cohesiveness, 363–64 Committees, 226 Communication about change, 278–79 achieving effective, 293–94 barriers to effective, 301–4 context of, 294 defined, 294 within diverse organizations, 291 downward, 304–5 horizontal, 307 importance of effective, 292–93 interpersonal, 296–301 listening skills for, 309–10 oral, 296–97 reasons for, 301 technological, 298–301 upward, 305–6 545 www.downloadslide.net Subject Index vertical, 304–7 written, 297 Control systems checklist for, 414 costs in, 414, 415 designing effective, 408–19 factors affecting, 409–11 reliability of, 414–15 Communication channels, 295 formal, 304–7 spontaneous, 307–8 Communication competency challenges, 308–10 Communication complexity, 293 Communication feedback, 296 Communication process, components of, 294–96 Compensation, 250–51 Competencies, 16 Competitive advantage, 103 achievement of, 104–9 generic strategy and, 107 Competitive analysis, 101 Competitive intelligence, 111 Competitiveness, total quality management and, 452–53 Competitive scope, 107 Competitive structure, 99, 100–101 Competitors, rivalry among, 101 Completeness, of information, 478 Complexity, managing, 222–28 Computer monitoring, 425 Conceptual skills, 10, 11–12 Concurrent control, 417 Conformance, 450 Contingency perspective, of management, 44–45, 46 Contingency planning, 133–34 Continuous-flow systems, 437 Continuous-process technology, 45 Contrast errors, 250 Control bureaucratic, 419–20 concurrent, 417 criteria for effective, 411–13 ethical issues in, 424–25 feedback, 417–18 feedforward, 417 financial, 421–24 focal point for, 416–19 introduction to, 405 organic (clan), 419–20 process importance and, 415–16 selecting proper amount of, 413–16 time lags in, 410 Controlling, defined, Control philosophies, 419–20 Control process, steps in, 406 Controls, 110 planning for effective, 123–24 Control style, selecting, for diverse organizations, 420–21 546 Coordinating, 222 Coordination increasing, 225–26 nonverbal, 297–98 reducing need for, 227–28 Core job dimensions, 188–90 Corporate corruption, 99 Corporate-level strategy, 126–27 Corporate social responsibility, 60–61 ten commandments of, 67 See also Social responsibility Corrective control, 417–18 Cost-benefit analysis, 70–71 Cost leadership strategy, 107–8 Creativity, 151 Credibility, 302 Cross-cultural diversity, 301–2 Cross-functional work teams, 226 Cross-training, 193 Culture See Organizational culture Current assets, 422 Current liability, 422 Customer capital, 14 Customer divisional structure, 218 Customer-driven standards, 452 Customer profiles, 99–100 Customers bargaining power of, 13, 100–101 external, 452 information access by, 12 internal, 452 D Data, 476–77 Database management systems (DBMSs), 476 Databases, 476 Data encryption, 487 Debt ratios, 423 Decentralized decision making, 228 Decisional roles, Decision making cultural influences on, 156–57 defined, 146–47 delayed, 124 ethical and social implications in, 172–73 group, 159–65 introduction to, 146 involving employees in, 136 locus of, 228–30 making final choice, 153 participative, 159–65 skill assessment, 152 Decision-making models, 155–59 behavioral decision model, 157–58 participative models, 159–62 rational-economic decision model, 155–57 Decision-making process fostering quality in, 159 steps in, 148–55 Decision-making tools, 166–72 information technology and, 173 portfolio matrix, 167–72 strategic decision-making matrix, 166–67 Decision matrix, 109 Decisions monitoring and evaluating, 154–55 sources of, 146–48 Decision support systems (DSSs), 471–72, 473 Defense, 66 Delegating style, of leadership, 331 Delegation, 198–203 benefits of, 200–201 effective, 202 levels of, 202–3 process of, 198–200 reasons for failing to, 201–2 Delphi technique, 153, 164–65 Demand forecasting, 242 Design, productivity and, 449 Devil's advocacy approach, 165 Dialectical inquiry, 165 Differentiation strategy, 108 Disseminators, 7–8 Distinctive competency, 103 Diversification, 127 Diversity, 13–14, 15 as barrier to communication, 301–2 control systems and, 412–13 increasing, 98 taking advantage of, 136 team, 359–60 of workforce, 30, 47 workforce, 255–56 Divisional structure, 215, 216–19 Division of labor, 37 Dogs, 168 Dot-com companies, 4, 12 profitability of, 12 Downward communication, 304–5 Driving forces, 277–78 Drug testing, 424 www.downloadslide.net Subject Index Drug tests, 246 Durability, 450 Dynamic networks, 222 E E-commerce, 469, 486–87 B2B, 98 B2C, 98 Economic environment, 95–97 Economic feasibility, 481 Economic influences, on management thought, 29–30 Economic order quantity model, 445 Economic responsibility, 61–62 Economies, shifting, 468 Effectiveness defined, evaluation and control of, 109–10 Efficiency defined, evaluation and control of, 109–10 Electronic commerce, 469, 486–87 Electronic data interchange (EDI), 484 Electronic funds transfer (EFT), 484–85 Electronic mail (e-mail), 299, 486 E-mail, 299, 486 Emotional intelligence (EI), 333, 334 Empathy, 450 Employee-centered work redesign, 193–94 Employee fairness, 252 Employee motivation international perspectives on, 392 introduction to, 375–77 money and, 389–91 needs-based approach to, 377–82 participative management and, 388–89 process approach to, 377, 382–85 process of, 377 recognition programs, 389 reinforcement approach to, 377, 385–88 Employees empowering, 389 ethics development in, 73, 75 involving in decision making, 136 operational, selection and promotion of, 37 training, 247–48 unethical behavior by, 69–70 See also Strategic human resource management (SHRM) Employment laws, 253–55 Employment test, 245–46 Empowering employees, 389 Empowerment, 331–32 Encoding process, 294, 295 Encryption, 487 End users, 479 Enterprise resource planning (ERP) systems, 455, 472–73, 474 Entrants, threat of, 101 Entrepreneurs, Entropy, 44 Environmental analysis, 95–102 Environmental awareness, 98 Environmental stability, 229 Equal Employment Opportunity Commission (EEOC), 255 Equal employment opportunity (EEO) laws, 254–55 Equity model, 383–85 Equity theory, 385 Escalation of commitment, 158 Esteem needs, 379 Ethical behavior defined, 68 financial performance and, 77 Ethical dilemmas managerial guidelines for, 70–72 managerial guidelines for, 157 Ethical issues, in workforce control, 424 Ethical responsibility, 61, 62 Ethics, 15–16 business, 67–70 codes of, 73–75 decision making and, 172–73 defined, 67 fostering, 72–77 foundations of, 68–69 social responsibility and, 57 values and, 69 in the workplace, 72 See also Social responsibility; Unethical behavior Ethics-training programs, 75 Ethnocentrism, 301 Evaluation, of change, 280 Evaluation and control phase, of strategic planning, 91, 92 Executives, functions of, 42 Executive support systems (ESSs), 472, 473 Expectancy, 382–83 Expectancy model, 382–83 Expert power, 326 Expert systems, 487–88 External customers, 452 External environment, 16 conducting analysis of, 95–102 External-failure costs, 451 External fairness, 251–52 External forces, 277 External locus of control, 346–47 External recruitment, 243 Extinction, 386 F Facility layout, 442 Facility location, 441–42 False Claims Act, 76 Family and Medical Leave Act, 254–55 Feasibility, 481 Federal Reserve, fiscal policies set by, 99 Feedback reports, 411 Feedback, 43, 189, 200 communication, 296 skill development, 308–9 Feedback control, 417–18 Feedback controls, 110, 154–55 Feedback reports, 412 Feedforward control, 417 Feedforward controls, 110 Feeling/thinking, 349 Figureheads, Financial control mechanisms, 421–24 Financial ratios, 422–24 Financial statements, 421–22 First-line managers, 9–10 Five forces model, 100–1 Fixed assets, 422 Fixed-interval schedule, 387 Fixed-position layout, 443 Fixed-ratio schedule, 387 Focus strategy, 108 Followership, 327 Force-field analysis, 276–77 Forecasting, human resources, 241–42 Formal authority, 198 Formal groups, 356–57 Forming stage, of teams, 363 Free riding, 360–61 Functional-level strategy, 126, 127–28 Functional managers, Functional structure, 214–16 Future issues, planning for, 123 547 www.downloadslide.net Subject Index G GE matrix, 169–72 Gender, leadership and, 333–35 Gender differences, in communication, 303–4 General environment, 95–97 General management systems, 225 General managers, Generic strategy, 107–8 Geographic divisional structure, 216, 218 Global brand recognition, 123 Global competitiveness, 452–53 Global external environment, 96 Global influences, on management thought, 32 Globalization customer analysis and, 100 increasing, 13, 15, 96, 467–68 management thought and, 47 Goal commitment, 105–6 Goals MBO and, 131–33 setting strategic, 104–6 stretch, 106 team, 361 Goal setting, 385 Grand strategies, 106–7 Grapevine, 307–8 Group decision making See Participative decision making Groups characteristics of, 356–57 formal, 356–57 heterogeneous groups, 359–60 homogenous, 359–60 informal, 357 See also Teams Groupthink, 163, 364 Growth-share matrix, 167–69 Growth strategy, 106 H Halo-and-horn effect, 355 Halo effect, 249 Hardware, 476 Hawthorne effect, 40 Heterogeneous groups, 359–60 Hierarchical power structure, 38 Hierarchy of needs, 378–80 Homogenous groups, 359–60 Horizontal communication, 307 Hostile environment harassment, 256–57 Household composition, 98 Human capital, 14 548 Human resource management See strategic human resource management (SHRM) Human rights approach, to ethical dilemmas, 71 Human skills, 10, 10–11 Hurricane Katrina, 30 Hybrid layout, 443 Hygiene factors, 380–81 I Idealized influence, 332 Imagination, 151 Impersonality, 37 Implementation strategies choosing, 153–54 effective, 155 Incentives, 250–53 Income statements, 422, 423 Individual differences appreciation of, 345–56 job matching and, 350–56 personality characteristics, 345–50 Individualized consideration, 332 Individual plans, 130–33 Industry, competitive structure of, 100–1 Industry attractiveness/business strength matrix, 169–72 Informal authority, 198 Informal groups, 357 Information characteristics of useful, 477–78 vs data, 476–77 privacy issues and, 69 sharing, about changes, 278–79 Informational roles, 7–8 Information overload, 303 Information power, 325–26 Information-processing capacity, 224–28 Information systems, 226 attributes of successful, 481–82 components of, 473–76 development of, 478–81 integration of, 472–73 knowledge-level, 469–70, 471 limitations of, 489–90 management-level, 470, 471–72 operational-level, 469–71 organizational foundations of, 467–73 strategic-level, 470, 472 technical foundations of, 473–82 types of, 469–70 Information technology affect of, on business, 12–13 globalization and, 467–68 impact of, 466–67, 488–89 impact of, on communication, 294, 298–301 impact of, on planning, 134–35 management style and, 45–47 new, 482–88 organizational control and, 421 productivity and, 455 quality and, 455 strategic planning and, 110–11 Inputs, 43, 447–48, 473–74 Inspirational motivation, 332 Instrumentality, 383 Instrumental values, 69 Integrating mechanisms, 224–28 Integration, 222–28 interdependence and, 223–24 Intellectual capital, 14–15 Intellectual stimulation, 332 Interdependence, 223–24, 229 Internal analysis, 102–4 Internal customers, 452 Internal-failure costs, 451 Internal fairness, 252 Internal forces, 277–78 Internal locus of control, 346–47 Internal networks, 221–22 Internal recruitment, 243 Internet affect of, on business, 12–13, 15 communication and, 300 globalization and, 13 impact of, 484 Interpersonal communication, 296–301 Interpersonal roles, Interviews, 246–47 Introversion/extroversion, 349 Intuition, 158 Inventory management, 444, 445–46 J Japanese management style, 47–48 Japanese management styles, 331 Jargon, 303 Job analysis, 241 Job applicants, selection process for, 244–47 Job depth, 192 Job descriptions, 187–88, 241, 242 Job design, 187–95 core job dimensions, 188–90 defined, 187 perspectives on, 190–95 Job enlargement, 192 www.downloadslide.net Subject Index Job enrichment, 192–93 Job rotation, 193 Job satisfaction, 353–54 Job scope, 192 Job-shop production system, 438 Job specialization, 191–92 Job specification, 241, 242 Justice approach, to ethical dilemmas, 71–72 Just-in-time (JIT) inventory management, 445–46 Just-in-time operating philosophy, 47 K Kaizen, 453 Kinesic behavior, 298 Knowledge-level information systems, 469–70, 471 Knowledge management systems (KMSs), 472 L Labor-management relations, 257–58 Labor market diversity of, 30 division of, 37 increasing diversity of, 13–14 Labor supply, availability of, 101–2 Language, 272 characteristics of, 303 Lateral relationships, 226 Law of requisite variety, 410 Leader, role of, Leaders change and, 280 control systems and, 425 decision making and, 173 effective communication and, 310 of the future, 335–36 influential, 324 information technology and, 490–91 motivation and, 392–93 operations management and, 456–57 organizational design and, 230 organizational relationships and, 203 planning and, 136 social responsibility, ethics, and, 77 strategic planning and, 111 traits of, 321–23 Leadership current perspectives on, 333–36 follower-centered approaches to, 327–29 gender and, 333–35 guiding principles for, 336 interactive approaches to, 330–33 introduction to, 320–21 leader-centered approaches to, 321–27 vs management, 321 self-leadership, 327–29 significance of, 321 styles, 330–31 transformational, 332–33 Leadership models, situational, 330–31 Leadership substitutes, 329–30 Leading, defined, Legal environment, of human resource management, 253–57 Legal responsibility, 61, 62 Legitimate power, 324 Leniency errors, 249 Liability, 422 Liaisons, Line departments, 197–98 Liquidity ratios, 423 Listening skills, 309–10 Local-area networks (LANs), 483 Locus of control, 346–47 Locus of decision making, 228–30 Long-term liability, 422 M Malcolm Baldrige National Quality Award, 47 Management in 21st century, 12–16 defined, Fayol's general principles of, 36 framework for, 16-17 functions, introduction to, levels of, 9–12 participative, 388–89 reasons to study, 17 Management by exception, 411 Management by objectives (MBOs), 131–33 Management information systems (MISs), 471, 472 Management-level information systems, 470, 471–72 Management skills, 9–12 Management style, information technology and, 45–47 Management theory, on job design, 190–95 Management thought chronological development of, 33 environmental factors influencing, 29–32 future issues, 47–48 impact of technological advances on, 45–47 introduction to, 28 Japanese, 47–48 schools of, 33–45 Managerial planning, 120–26 Managerial process, 6, Managers accomplishments of best, demands on, 135 ethical behavior of, 15–16 first-line, 9–10 functional, functions of, general, vs leaders, 321 middle, 10–11 roles of, 6–8 scope and levels of, 8–12 tips for new, 325 top-level, 11–12 types of, 9–12 Manufacturing organizations, 435–37 facility layout, 442 facility location, 441–42 types of, 437–38 Maslow's hierarchy of needs, 378–80 Mass-production systems, 437 Mass-production technology, 45 Master production schedule, 444 Materials requirements planning (MRP), 444–45 Matrix structure, 215, 219–20 MBO See Management by objectives (MBOs) Messages, 294, 295 Metaphors, 272 Middle managers, 10–11 Mission assessing organization's, 92–95 defined, 92 evaluating progress toward, 109–10 Mission statements, 92, 94, 95, 104 Money, as motivator, 389–91 Monitors, Moral agents, 61, 63 Motivation basic process of, 377 international perspectives on, 392 introduction to, 375–77 participative management and, 388–89 perspectives on, 377–88 worker, 35 Motivator factors, 380 549 www.downloadslide.net Subject Index Multinational organizations control process in, 405–8 selecting control style for, 420–21 Myers-Briggs Type Indicator (MBTI), 348–50, 351 N National Labor Relations Board (NLRB), 257 Natural resources, scarcity of, 29–30 Need for achievement, 381 Need for affiliation, 382 Need for power, 381–82 Needs affiliation, 378–79 esteem, 379 hierarchy of, 378–80 physiological, 378 security, 378 self-actualization, 379–80 Needs-based approach to motivation, 377 acquired-needs model, 381–82 hierarchy of needs, 378–80 two-factor model, 380–81 Negative reinforcement, 386–87 Negotiator role, Networking, 483–86 Network structure, 215, 220–22 Neutralizers, 329 Niche markets, increase of, 97–98 Noise, 296 Nominal group technique, 153 Nominal group technique (NGT), 164 Nongovernmental organizations (NGOs), 73 Nonprogrammed decisions, 165–66 Nonverbal communication, 297–98 Norming, 363 Norms, 364 O Objectives, identifying, 151 Office automation systems (OASs), 472 Open systems, 43–44 Operating environments, uncertain, 135 Operating systems manufacturing vs services, 435–37 structural differences between, 437–39 Operational employees, Operational feasibility, 481 550 Operational-level information systems, 469–71 Operational planning, 128–33 Operational plans, 128–33 Operations management decision areas, 439–47 defined, 434–35 productivity and quality and, 447–55 Operations research, 42–43 Operations transformation processes, 416 Opportunities, 95, 147 identifying, 149–51 Oral communication, 296–97 Organic (clan) control, 419–20 Organizational artifacts, 271–73 Organizational change challenge of, 275–76 leading, 276–80 Organizational chart, 195 Organizational control for diverse and multinational organizations, 405–8 impact of information technology on, 421 introduction to, 405 performance standards, 405–7 See also Control Organizational culture, 69, 229–30 changing, 275 components of, 270–73 foundations of, 269–70 impact of, 273–75 introduction to, 268–69 Organizational design components of, 214–30 defined, 212–13 Organizational feasibility, 481 Organizational relationships, 195–202 authority and responsibility, 198–202 chain of command, 195–96 line and staff responsibilities, 197–98 span of control, 196–97 Organizational strategy, control systems and, 411–12 Organizational structure, 195 advantages and disadvantages of, 215 defined, 214 divisional structure, 216–19 flattening of, 468 functional structure, 214–16 integration, 222–28 matrix structure, 219–20 network structure, 220–22 Organizational success, Organizations coordination in, 122–23 defined, goals of, 18 intellectual capital of, 14–15 internal analysis of, 102–4 stakeholders in, 58–60 Organizing defined, 6, 186 job design and, 187–95 process of, 186–87 Orientation, 247–48 Outputs, 43, 447–48, 475–76 Outsourcing, 60 Owner's equity, 424 P Paralanguage, 298 Paralysis by analysis, 124 Participative decision making, 159–65 advantages and disadvantages of, 162–63 enhancing quality of, 163–65 group size and, 162 participative models, 159–62 Participative management, 388–89 Perceived quality, 450 Perceiving/judging, 349–50 Perception, 354 Perceptual errors, 355 Perceptual process, 354–55 Performance comparing actual with standards, 407–8 deviations, 408 job satisfaction and, 353–54 measuring actual, 407 quality and, 450 Performance appraisals, 248–50 Performance measurement, Balanced Scorecard (BSC), 133 Performance standards, setting, 405–7 Performing stage, of teams, 364–65 Personal competence, 333, 334 Personality, 345 Personality characteristics, 345–50 matching with jobs, 350–56 Personality tests, 246 Personalized power orientation, 326–27 Personal power, 326–27 Philanthropic responsibility, 61, 63–64 www.downloadslide.net Subject Index Physical characteristics, 298 Physical exams, 246 Physiological needs, 378 Plan B, 133–34 Planning barriers to effective, 135–37 bottom-up, 125 contingency, 133–34 costs of, 124 defined, 6, 121–22 implementation and, 154 information technology and, 134–35 introduction to, 120 operational, 128–33 performance and, 122 reasons to, 122–24 top-down, 125 where to begin, 124–26 See also Strategic planning Planning process, facilitating, 135–36 Plans, 121 Policies, 129 Political influences, on management thought, 31–32 Political-legal environment, 98–99 Pooled interdependence, 223 Portfolio assessment models, 108–9 Portfolio matrix, 167–73 Position power, 324–26 Positive reinforcement, 386 Power coercive, 324–25 expert, 326 information, 325–26 legitimate, 324 need for, 381–82 personal, 326–27 position, 324–26 referent, 326 reward, 325 Power focus, 323–24 Power structures, hierarchical, 38 Prevention costs, 451 Proaction, 66 Problems, 147 anticipation of, 410–11 diagnosing, 149–51 Procedures, 129 Process approach to motivation, 377, 382–85 Processing component, of information systems, 475 Process selection, 441 Process systems, 437–38 Product design, 440–41 Product divisional structure, 216, 217 Product factors, 450 Production technology, 45 Productivity fundamentals of, 447–49 impact of information technology on, 455 improving, 448–49 Product layout, 443 Products, choosing, 440 Product systems, 437 Professional development plans, 123 Profitability ratios, 423 Profit-and-loss statements, 422, 423 Programmed decisions, 165 Programs, 130 Project production systems, 438 Projects, 130 Punishment, 386–87 Q Quality, 434 assessment of, 450 cost of, 450–51 focus on, 47 fundamentals of, 449–52 impact of information technology on, 455 information, 478 perceived, 450 total quality management (TQM), 452–53 Quality assurance (QA), 450 Quality circles, 453 Quality control (QC), 449–50 Quality management philosophies, 453–55 Quantitative perspective, of management, 42–43 Question marks, 169 Quid pro quo harassment, 256 Receivers, 296 Recency errors, 250 Reciprocal interdependence, 223–24 Recognition programs, 389 Recruitment, 242–44 Referent power, 326 Refreezing process, 279–80 Reinforcement approach to motivation, 377, 385–88 Related diversification, 127 Relationship-oriented roles, 358–59 Relations orientation, 323 Reliability, 450 of control systems, 414–15 Repetitive systems, 437 Resiliency, 348, 349 Resource allocation, Resource availability, 101–2 Resources, 101 Responsibility, 198, 199–200 See Social responsibility Restraining forces, 277–78 Résumé, 244 Retail stores, configuration of, 12 Retrenchment strategy, 106–7 Reward power, 325 Reward systems, 250–53 for teams, 391 See also Employee motivation RIASEC Vocational Interest Typology, 352 Rites, 271–72 Rituals, 271–72 Robotics, 488 Roles, 357–59 decisional, defined, 6–7 informational, 7–8 interpersonal, leadership, of managers, 6–8 Rules, 129–30 Rules and procedures, 37 R S Radio-frequency identification (RFID), 475 Rating patterns, 249–50 Rational-economic decision model, 155–57 Rational-legal authority, 37–38 Reaction, 65 Readiness, 330 Sarbanes-Oxley Act, 15, 76, 99, 110 Satisficing, 158 Schedules of reinforcement, 387–88 Scientific management, 34–36 Security needs, 378 Selection, 244 Selective perception, 355 Self-actualization needs, 379–80 551 www.downloadslide.net Subject Index Self-esteem, 346 Self-leadership, 327–29 Self-managed teams (SMTs), 194–95 Self-monitoring (SM), 347 Self-oriented roles, 359 Selling style, of leadership, 331 Sender, 294 Sensing/intuitive, 349 Sequential interdependence, 223 Serviceability, 450 Service design, 440–41 Service factors, 450 Service organizations, 435–37 types of, 438–39 Services, choosing, 440 Service teams, 345 Severity errors, 249 Sexual harassment, 256–57 Single-use plans, 130 Situational leadership model, 330–31 Skills needed by managers, 9–12 universal, 17 Skill variety, 188 Small-batch technology, 45 SMART goals, 105 Social competence, 333, 334 Social context, 294 Social contracts, 61 Social influences, on management thought, 30–31 Socialized power orientation, 327 Social responsibility in 21st century, 66–67 approaches to, 65–66 corporate, 60–61 decision making and, 172–73 ethics and, 57 faces of, 64–65 financial performance and, 77 introduction to, 58 perspectives, 61–64 stakeholders and, 58–60 See also Ethics Sociocultural environment, 97–98 Software, 476 Span of control, 196–97 Specialization, 191–92 Special-purpose teams, 453 Spokespersons, Spontaneous communication channels, 307–8 Sports industry, pressures to perform in, 70 552 Stability strategy, 106 Stable environments, 229 Stable networks, 222 Staff departments, 197–98 Stakeholders, in global environment, 58–60 Standard operating procedures (SOPs), 129 Standing plans, 128–30 Stars, 168 Stereotyping, 354–55 Stories and sagas, 272–73 Storming, 363 Strategic alternatives, 106–8 Strategic analysis, 91 assessing organization's mission, 92–95 components of, 93 of external environment, 95–102 of internal environment, 102–4 introduction to, 92 Strategic business units (SBUs), 127, 216 Strategic decision-making matrix, 166–67 Strategic decision-making tools, 166–72 Strategic direction, 94 Strategic goals, setting, 104–6 Strategic human resource management (SHRM) defined, 241 forecasting, 241–42 introduction to, 239, 240 job analysis, 241 labor-management relations, 257–58 legal environment of, 253–57 performance appraisals, 248–50 recruitment, 242–44 reward systems, 250–53 selection, 244–47 training, 247–48 Strategic-level information systems, 470, 472 Strategic management defined, 90–91 introduction to, 90 Strategic planning, 91–92 evaluation and control, 109–10 information technology and, 110–11 levels of, 126–28 strategic analysis, 92–104 strategy formulation, 104–9 strategy implementation, 109 Strategic plans, 91 Strategic thinking, encouragement of, 136 Strategy formulation, 91, 104–9 evaluating and choosing strategy, 108–9 identifying strategic alternatives, 106–8 setting strategic goals, 104–6 Strategy implementation, 91, 92, 109 Stretch goals, 106 Structural capital, 14 Substitute products, threat of, 101 Success rates, of new businesses, 121 Supervision, 35 Suppliers, bargaining power of, 101 Supply chain, 446 Supply-chain management (SCM), 446–47 Supply forecasting, 242 Symbols, 272 Synergy, 44 System capacity, 441 System design decisions, 440–47 Systems analysis, 43, 479–80 Systems design, 480 Systems implementation, 480 Systems maintenance, 480–81 Systems perspective, of management, 43–44 T Taft-Hartley Act, 257 Tangibles, 450 Task environment, 95, 99–102 Task forces, 226 Task identity, 188 Task orientation, 323 Task-oriented roles, 358 Task performance, 34–35 Tasks, delegation of, 198–203 Task significance, 188 Team dynamics, introduction to, 344–45 Team goals, 361 Team performance, rewarding, 391 Teams cohesiveness, 363–64 cross-functional work teams, 226 designing effective, 356–61 development of, 362–64 effectiveness of, 362–65 membership composition, 357–60 performance of, 364–65 service, 345 size of, 360–61 special-purpose, 453 www.downloadslide.net Subject Index virtual, 226–27 See also Groups Technical feasibility, 481 Technical skills, 10 Technological communication, 298–301 Technological environment, 98 Technological influences, on management thought, 32 Technology new, 482–88 productivity and, 448 types of, 45 See also Information technology Telecommunications, 483–86 Telecommuting, 298–99, 468–69, 485–86 Telework, 298–99 Telling style, of leadership, 330–31 Terminal values, 69 Tests, employment, 245–46 Theory X, 40, 41 Theory Y, 40, 41 Theory Z, 47 Threats, 95 Time, as nonverbal communication, 298 Timeliness, of information, 478 Tobacco companies, 66 Top-down planning, 125 Top-level managers, 11–12 Total quality management (TQM), 450, 452–53 Traditional authority, 37–38 Training, 247–48 Traits and skills focus, 321–22 Transaction processing systems (TPSs), 470–71 Transformational leadership, 332–33 Transformation process, 43 Trust, 302 Turbulent environments, 229 Twenty-first century management, 12–16 Two-factor model, 380–81 Type A personality, 348 Type B personality, 348 U Undercover surveillance, 424–25 Unethical behavior, 57, 67 information technology and, 69–70 pressures leading to, 70 Unfreezing process, 277 Unions, 257–58 Unity of command, 195 Universal skills, 17 Unrelated diversification, 127 Upward communication, 305–6 U.S automakers, global influences on, 32 Utility approach, to ethical dilemmas, 70–71 V Values, 69 Variable-interval schedule, 387 Variable-ratio schedule, 387–88 Variance reporting, 411 Vertical communication, 304, 304–7 Video conferencing, 299–300 Vigilance, 159 Virtual teams, 226–27 Virtual workplace, 468 Vision, 94–95 Vision statements, 95, 104 Vroom-Jago decision-making styles, 159–60 Vroom-Jago decision model, 161 W Wagner Act, 257 Wealth of Nations (Smith), 191 Websites, 300 Whistle-blowing, 75–77 Wide-area networks (WANs), 483–84 Workers, motivation of, 35 Workforce control, 424–25 diversity, 255–56 diversity of, 13–14, 30, 47 Work samples, 245 World economy, 96 World Wide Web (WWW), 484 Written communication, 297 Valence, 383 Validity, 244 553 ... contemporary management trends that present challenges for organizations and leaders today They include global management, entrepreneurship, service management, quality, team-based management, ... Follower-Centered Approaches 327 Self-Leadership Focus 327 At the Forefront: What Goldman Sachs Looks for in Leaders 328 Leadership Substitutes 329 Interactive Approaches 330 Situational Leadership Model 330... Quality Management as a Tool for Global Competitiveness 452 Prominent Quality Management Philosophers 453 Impact of Information Technology on Productivity and Quality 455 Implications for Leaders