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200 Pa r t • Organizing team structure A structure in which the entire organization is made up of work teams structure and organize work by using designs such as team-based structures, matrix and project structures, and boundaryless structures.29 (See Exhibit 6–10 for a summary of these designs.) whaT are Team sTruCTures? Larry Page and Sergey Brin, co-founders of Google, have created a corporate structure that “tackles most big projects in small, tightly focused teams.”30 A team structure is one in which the entire organization is made up of work teams that the organization’s work.31 In this structure, employee empowerment is crucial because there is no line of managerial authority from top to bottom Rather, employee teams design and work in the way they think is best, but are also held responsible for all work performance results in their respective areas In large organizations, the team Exhibit 6–10 Contemporary Organization Designs Advantages: Employees are more involved and empowered Reduced barriers among functional areas Team Structure A structure in which the entire organization is made up of work groups or teams Disadvantages: No clear chain of command Pressure on teams to perform Advantages: Fluid and flexible design that can respond to environmental changes Faster decision making Matrix-Project Structure Matrix is a structure that assigns specialists from different functional areas to work on projects who then return to their areas when the project is completed Project is a structure in which employees continuously work on projects As one project is completed, employees move on to the next project Disadvantages: Complexity of assigning people to projects Task and personality conflicts Advantages: Highly flexible and responsive Utilizes talent wherever it’s found Boundaryless Structure A structure not defined by or limited to artificial horizontal, vertical, or external boundaries; includes virtual and network types of organizations Disadvantages: Lack of control Communication difficulties Advantages: Sharing of knowledge throughout organization Sustainable source of competitive advantage Learning Structure A structure in which employees continually acquire and share new knowledge and apply that knowledge Disadvantages: Reluctance on part of employees to share knowledge for fear of losing their power Large numbers of experienced employees on the verge of retiring Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p 315 Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY CHAPTER • O r g a n i z a t i o n a l S t ru c tu r e a n d D e s i g n structure complements what is typically a functional or divisional structure This allows the organization to have the efficiency of a bureaucracy while providing the flexibility of teams For instance, companies such as Amazon, Boeing, Hewlett-Packard, Louis Vuitton, Motorola, and Xerox extensively use employee teams to improve productivity Although team structures have been positive, simply arranging employees into teams is not enough Employees must be trained to work on teams, receive cross-functional skills training, and be compensated accordingly Without a properly implemented team-based pay plan, many of the benefits of a team structure may be lost.32 We’ll cover teams more thoroughly in Chapter 10 matrix structure A structure in which specialists from different functional departments are assigned to work on projects led by a project manager whaT are maTrix and ProjeCT sTruCTures? In addition to team-based structures, other popular contemporary designs are the matrix and project structures The matrix structure assigns specialists from different functional departments to work on projects led by a project manager When employees finish work on an assigned project, they go back to their functional departments One unique aspect of this design is that it creates a dual chain of command since employees in a matrix organization have two managers: their functional area manager and their product or project manager, who share authority (See Exhibit 6–11.) The project manager has authority over the functional members who are part of his or her project team in areas related to the project’s goals However, any decisions about promotions, salary recommendations, and annual reviews typically remain the functional manager’s responsibility To work effectively, both managers have to communicate regularly, coordinate work demands on employees, and resolve conflicts together The primary strength of the matrix is that it can facilitate coordination of a multiple set of complex and interdependent projects while still retaining the economies that result from keeping functional specialists grouped together The major disadvantages of the matrix are the confusion it creates and its propensity to foster power struggles When you dispense with the chain of command and unity of command principles, you significantly increase ambiguity Confusion can arise over who reports to whom The confusion and ambiguity, in turn, are what trigger the power struggles Exhibit 6–11 Sample Matrix Structure Design Engineering Manufacturing Contract Administration Purchasing Accounting 201 Human Resources Alpha Project Design Group Manufacturing Group Contract Group Purchasing Group Accounting Group Human Resources Group Beta Project Design Group Manufacturing Group Contract Group Purchasing Group Accounting Group Human Resources Group Gamma Project Design Group Manufacturing Group Contract Group Purchasing Group Accounting Group Human Resources Group Omega Project Design Group Manufacturing Group Contract Group Purchasing Group Accounting Group Human Resources Group 202 Pa r t • Organizing Instead of a matrix structure, many organizations are using a project structure, in which employees continuously work on projects Unlike the matrix structure, a project structure has no formal departments where employees return at the completion of a project Instead, employees take their specific skills, abilities, and experiences to other projects Also, all work in project structures is performed by teams of employees For instance, at design firm IDEO, project teams form, disband, and form again as the work requires Employees “join” project teams because they bring needed skills and abilities to that project Once a project is completed, however, they move on to the next one.33 Project structures tend to be more flexible organizational designs • Advantages: • Employees can be deployed rapidly to respond to environmental changes • No departmentalization or rigid organizational hierarchy to slow down decisions or actions • Managers serve as facilitators, mentors, and coaches and work to eliminate or minimize organizational obstacles and ensure that teams have the resources they need to effectively and efficiently complete their work • Disadvantages: • Complexity of assigning people to projects • Inevitable task and personality conflicts that arise project structure A structure in which employees continuously work on projects boundaryless organization An organization whose design is not defined by, or limited to, boundaries imposed by a predefined structure virtual organization An organization that consists of a small core of fulltime employees and outside specialists temporarily hired as needed to work on projects network organization An organization that uses its own employees to some work activities and networks of outside suppliers to provide other needed product components or work processes whaT is a Boundaryless orGanizaTion? Another contemporary organizational design is the boundaryless organization, which is an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure.34 Former GE chairman Jack Welch coined the term because he wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers Although the idea of eliminating boundaries may seem odd, many of today’s most successful organizations are finding that they can operate most effectively by remaining flexible and unstructured: that the ideal structure for them is not having a rigid, bounded, and predefined structure.35 What we mean by “boundaries”? There are two types: (1) internal—the horizontal ones imposed by work specialization and departmentalization and the vertical ones that separate employees into organizational levels and hierarchies; and (2) external—the boundaries that separate the organization from its customers, suppliers, and other stakeholders To minimize or eliminate these boundaries, managers might use virtual or network structural designs A virtual organization consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects.36 An example is when Second Life, a company creating a virtual world of colorful online avatars, was building its software Founder Philip Rosedale hired programmers from around the world and divided up the work into about 1,600 individual tasks, “from setting up databases to fixing bugs.” The process worked so well, the company used it for all sorts of work.37 Another example is Nashvillebased Emma Inc., an e-mail marketing firm with 100 employees who work from home or offices in Austin, Denver, New York, and Portland.38 The biggest challenge they’ve faced is creating a “virtual” culture, a task made more challenging by the fact that the organization is virtual The inspiration for this structural approach comes from the film industry There, people are essentially “free agents” who move from project to project applying their skills— directing, talent casting, costuming, makeup, set design, and so forth—as needed Another structural option for managers wanting to minimize or eliminate organizational boundaries is a network organization, which is one that uses its own employees to some work activities and networks of outside suppliers to provide other needed product components or work processes.39 This organizational form is sometimes called a modular organization by manufacturing firms.40 This structural approach allows organizations to concentrate on what they best by contracting out other activities to companies that those activities best Many companies are using such an approach for certain organizational work activities For instance, the head of development for Boeing’s 787 airplane manages thousands of employees and some 100 suppliers at more than 100 sites in different countries.41 Sweden’s Ericsson contracts its manufacturing and even some of its research and development to more cost-effective contractors in New Delhi, Singapore, California, and other global locations.42 CHAPTER • O r g a n i z a t i o n a l S t ru c tu r e a n d D e s i g n 203 And at Penske Truck Leasing, dozens of business processes such as securing permits and titles, entering data from drivers’ logs, and processing data for tax filings and accounting have been outsourced to Mexico and India.43 Write It! If your professor has assigned this, go to the Assignments section of mymanagementlab.com to complete MGMT 2: Organizational Structures What Are Today’s Organizational Design Challenges? 6-4 Discuss the Changing the Way Work Is Done design challenges faced by today’s organizations As managers look for organizational designs that will best support and facilitate employees doing their work efficiently and effectively, there are certain challenges they must contend with These include keeping employees connected, managing global structural issues, building a learning organization, and designing flexible work arrangements How Do You Keep Employees Connected? Many organizational design concepts were developed during the twentieth century when work tasks were fairly predictable and constant, most jobs were full-time and continued indefinitely, and work was done at an employer’s place of business under a manager’s supervision.44 That’s not what it’s like in many organizations today, as you saw in our preceding discussion of virtual and network organizations A major structural design challenge for managers is finding a way to keep widely dispersed and mobile employees connected to the organization The Technology and the Manager’s Job box describes ways that information technology can help How Do Global Differences Affect Organizational Structure? Are there global differences in organizational structures? Are Australian organizations structured like those in the United States? Are German organizations structured like those in France or Mexico? Given the global nature of today’s business environment, this is an issue with which managers need to be familiar Researchers have concluded that the structures and strategies of organizations worldwide are similar, “while the behavior within them is maintaining its cultural uniqueness.”45 What does this mean for designing effective and efficient structures? When designing or changing structure, managers may need to think about the cultural implications of certain design elements For instance, one study showed that formalization—rules and bureaucratic mechanisms—may be more important in less economically developed countries and less important in more economically developed countries where employees may have higher levels of professional education and skills.46 Other structural design elements may be affected by cultural differences as well Melanie Stetson Freeman/AP Images Tim Kilroy, a salesman for the online advertising agency Triggit, works remotely on his computer from a Starbucks coffee shop or his home in Massachusetts With almost half of his clients located in other countries, Kilroy uses mobile computing and communication technology to stay connected to his company and to his widely dispersed clients 204 Pa r t • Organizing learning organization An organization that has developed the capacity to continuously learn, adapt, and change How Do You Build a Learning Organization? Doing business in an intensely competitive global environment, British retailer Tesco realized how important it was for its stores to run well behind the scenes And it does so using a proven “tool” called Tesco in a Box, which promotes consistency in operations as well as being a way to share innovations Tesco is an example of a learning organization, an organization that has developed the capacity to continuously learn, adapt, and change.47 The concept of a learning organization doesn’t involve a specific organizational design per se, but instead describes an organizational mind-set or philosophy that has significant design implications In a learning organization, employees are practicing knowledge management by continually acquiring and sharing new knowledge and are willing to apply that knowledge in making decisions or performing their work Some organizational design theorists even go so far as to say that an organization’s ability to learn and to apply that learning as they perform the organization’s work may be the only sustainable source of competitive advantage Watch It 2! If your professor has assigned this, go to the Assignments section of mymanagementlab.com to complete the video exercise titled CH2MHill: Adaptive Organizational Design ::::::: Technology and the Manager’s Job ::::::: THE CHAnGInG WORLD OF WORK It’s fair to say that the world of work will never be like it was 10 years ago.48 IT has opened up new possibilities for employees to their work in locations as remote as Patagonia or in the middle of downtown Seattle Although organizations have always had employees who traveled to distant corporate locations to take care of business, these employees no longer have to find the nearest pay phone or wait to get back to “the office” to see what problems have cropped up Instead, mobile computing and communication have given organizations and employees ways to stay connected, be more productive, and be more environmentally friendly Let’s look at some of the technologies that are changing the way work is done • Cell phones switch seamlessly between cellular networks and corporate Wi-Fi connections • Handheld devices with e-mail, calendars, and contacts can be used anywhere there’s a wireless network And these devices can be used to log into corporate databases and company intranets • Employees can videoconference using broadband networks and Web cams • Many companies are giving employees key fobs with constantly changing encryption codes that allow them to log onto the corporate network to access e-mail and company data from any computer hooked up to the Internet If your professor has assigned this, go to the Assignments section of mymanagementlab.com to complete these discussion questions The biggest issue in doing work anywhere, anytime is security Companies must protect their important and sensitive information However, software and other disabling devices have minimized security issues considerably Even insurance providers are more comfortable giving their mobile employees access to information For instance, Health Net Inc gave BlackBerrys to many of its managers so they can tap into customer records from anywhere One tech company CEO said that all types of organizations should start thinking about identifying and creating innovative apps that their workers could use in doing their jobs more efficiently and effectively and get those to them TAlk AboUT IT 5: What benefits you see with being able to work anywhere, anytime? (Think in terms of benefits for an organization and for its human resources.) TAlk AboUT IT 6: What other issues, besides security, you see with being able to work anywhere, anytime? (Again, think about this for an organization and for its employees.) CHAPTER • O r g a n i z a t i o n a l S t ru c tu r e a n d D e s i g n Exhibit 6–12 Characteristics of a Learning Organization Organizational Design • Boundaryless • Teams • Empowerment Organizational Culture • Strong Mutual Relationships • Sense of Community • Caring • Trust THE LEARNING ORGANIZATION Information Sharing • Open • Timely • Accurate Leadership • Shared Vision • Collaboration Sources: Based on P M Senge, The Fifth Discipline: The Art and Practice of Learning Organizations (New York: Doubleday, 1990); and R M Hodgetts, F Luthans, and S M Lee, “New Paradigm Organizations: From Total Quality to Learning to World Class,” Organizational Dynamics, Winter 1994, 4–19 What would a learning organization look like? As you can see in Exhibit 6–12, the important characteristics of a learning organization revolve around (1) organizational design, (2) information sharing, (3) leadership, and (4) culture (1) What types of organizational design elements would be necessary for learning to take place? In a learning organization, it’s critical for members to share information and collaborate on work activities throughout the entire organization—across different functional specialties and even at different organizational levels—through minimizing or eliminating the existing structural and physical boundaries In this type of boundaryless environment, employees are free to work together and collaborate in doing the organization’s work the best way they can, and to learn from each other Because of this need to collaborate, teams also tend to be an important feature of a learning organization’s structural design Employees work in teams on whatever activities need to be done, and these employee teams are empowered to make decisions about doing their work or resolving issues Empowered employees and teams have little need for “bosses” who direct and control Instead, managers serve as facilitators, supporters, and advocates for employee teams (2) Learning can’t take place without information For a learning organization to “learn,” information must be shared among members; that is, organizational employees must engage in knowledge management by sharing information openly, in a timely manner, and as accurately as possible Because few structural and physical barriers exist in a learning organization, the environment is conducive to open communication and extensive information sharing (3) Leadership plays an important role as an organization moves toward becoming a learning organization What should leaders in a learning organization? One of their most important functions is facilitating the creation of a shared vision for the organization’s future and then keeping organizational members working toward that vision In addition, leaders should support and encourage the collaborative environment that’s critical to learning Without strong and committed leadership throughout the organization, it would be extremely difficult to be a learning organization (4) The organization’s culture is important to being a learning organization In a learning culture, everyone agrees on a shared vision and everyone recognizes the inherent interrelationships among the organization’s processes, activities, functions, and external environment It also fosters a strong sense of community, caring for each other, and trust In a learning organization, employees feel free to communicate openly, share, experiment, and learn without fear of criticism or punishment 205 206 Pa r t • Organizing telecommuting A work arrangement in which employees work at home and are linked to the workplace by computer How Can Managers Design Efficient and Effective Flexible Work Arrangements? Accenture consultant Keyur Patel’s job arrangement is becoming the norm, rather than the exception.49 During a recent consulting assignment, he had three clocks on his desk: one set to Manila time (where his software programmers were), one to Bangalore (where another programming support team worked), and the third for San Francisco, where he was spending four days a week helping a major retailer implement IT systems to track and improve sales And his cell phone kept track of the time in Atlanta, his home, where he headed on Thursday evenings For this new breed of professionals, life is a blend of home and office, work and leisure Thanks to technology, work can now be done anywhere, anytime As organizations adapt their structural designs to these new realities, we see more of them adopting flexible working arrangements Such arrangements not only exploit the power of technology, but also give organizations the flexibility to deploy employees when and where needed In this section, we’re going to take a look at some different types of flexible work arrangements, including telecommuting; compressed workweeks, flextime, and job sharing; and contingent workforce As with the other structural options we’ve looked at, managers must evaluate these in light of the implications for decision making, communication, authority relationships, work task accomplishment, and so forth Information technology has made telecommuting possible and external environmental changes have made it necessary for many organizations Telecommuting is a work arrangement in which employees work at home and are linked to the workplace by computer Needless to say, not every job is a candidate for telecommuting But many are Working from home used to be considered a “cushy perk” for a few lucky employees and such an arrangement wasn’t allowed very often Now, many businesses view telecommuting as a business necessity For instance, at SCAN Health Plan, the company’s chief financial officer said that getting more employees to telecommute provided the company a way to grow without having to incur any additional fixed costs such as office buildings, equipment, or parking lots.50 In addition, some companies view the arrangement as a way to combat high gas prices and to attract talented employees who want more freedom and control over their work Despite its apparent appeal, many managers are reluctant to have their employees become “laptop hobos.”51 They argue that employees might waste time surfing the Internet or playing online games instead of working, ignore clients, and desperately miss the camaraderie and social exchanges of the workplace In addition, managers worry about how they’ll “manage” these employees How you interact with an employee and gain his or her trust when they’re not physically present? And what if their work performance isn’t up to par? How you make suggestions for improvement? Another significant challenge is making sure that company information is kept safe and secure when employees are working from home Employees often express the same concerns about working remotely, especially when it comes to the isolation of not being “at work.” At Accenture, where employees are scattered around the world, the chief human resources officer says that it isn’t easy to maintain that esprit de corps.52 However, the company put in place a number of programs and processes to create that sense of belonging for its workforce including Web conferencing tools, assigning each employee whaT’s inVolVed in TeleCommuTinG? View Pictures/Newscom Airbnb, the global travel rental firm, uses telecommuters and a contingency workforce of part-time, temporary, and freelance workers Flexible work arrangements, including those for employees shown here at Airbnb’s office in Dublin, enable the company to connect people in more than 34,000 cities and 190 countries either online or from a mobile phone or tablet CHAPTER • Organi z at i onal Structur e and Design 207 to a career counselor, and holding quarterly community events at its offices In addition, the telecommuter employee may find that the line between work and home becomes even more blurred, which can be stressful.53 These are important organizing issues and ones that managers and organizations must address when moving toward having employees telecommute how Can orGanizaTions use ComPressed workweeks, FlexTime, and joB sharinG? During the most recent economic crisis in the United Kingdom, accounting firm KPMG needed to reduce costs and decided to use flexible work options as a way of doing so.54 The company’s program, called Flexible Futures, offered employees four options to choose from: a four-day workweek with a 20 percent salary reduction; a two-to-twelve-week sabbatical at 30 percent of pay; both options; or continue with their regular schedule Some 85 percent of the UK employees agreed to the reducedwork-week plan “Since so many people agreed to the flexible work plans, KPMG was able to cap the salary cut at about 10 percent for the year in most cases.” The best thing, though, was that as a result of the plan, KPMG didn’t have to large-scale employee layoffs As this example shows, organizations sometimes find they need to restructure work using other forms of flexible work arrangements (1) One approach is a compressed workweek in which employees work longer hours per day but fewer days per week The most common arrangement is four 10-hour days (a 4–40 program) (2) Another alternative is flextime (also known as flexible work hours), which is a scheduling system in which employees are required to work a specific number of hours a week but are free to vary those hours within certain limits In a flextime schedule, most companies designate certain common core hours when all employees are required to be on the job, but starting, ending, and lunch-hour times are flexible Another type of job scheduling is called job sharing—the practice of having two or more people split a full-time job Organizations might offer job sharing to professionals who want to work but don’t want the demands and hassles of a full-time position For instance, at Ernst & Young, employees in many of the company’s locations can choose from a variety of flexible work arrangements including job sharing Many companies use job sharing during economic downturns to avoid employee layoffs.55 whaT is a ConTinGenT workForCe? “When Julia Lee first heard of Tongal, she thought it was a scam Tongal pays people—anyone with a good idea, really—to create online videos for companies such as Mattel, Allstate, and Popchips.”56 Tongal divides projects into stages and pays cash for the top-five ideas On Lee’s first submission—which only took three hours of work—she got $1,000 On another, she earned $4,000 In a year’s time, she’s earned some $6,000 for about 100 hours of work Tongal isn’t the only business doing this The idea of breaking up a job into small pieces and using the Internet to find workers to those tasks was pioneered by LiveOps and followed by Amazon.com’s Mechanical Turk and many others compressed workweek A workweek where employees work longer hours per day but fewer days per week Switch on Switch off 57 “Companies want a workforce they can switch on and off as needed.” Although this quote may shock you, the truth is that the labor force already has begun shifting away from traditional full-time jobs toward contingent workers—temporary, freelance, or contract workers whose employment is contingent upon demand for their services In today’s economy, many organizations have responded by converting full-time permanent jobs into contingent jobs It’s predicted that by the end of the next decade the number of contingent employees will have grown to about 40 percent of the workforce (It’s at 30 percent today.)58 In fact, one compensation and benefits expert says that “a growing number of workers will need to structure their careers around this model.”59 That’s likely to include you! flextime (also known as flexible work hours) A work scheduling system in which employees are required to work a specific number of hours per week but can vary when they work those hours within certain limits job sharing When two or more people split a full-time job contingent workers Temporary, freelance, or contract workers whose employment is contingent upon demand for their services 208 Pa r t • Organizing What are the implications for managers and organizations? Since contingent employees are not “employees” in the traditional sense of the word, managing them has its own set of challenges and expectations Managers must recognize that because contingent workers lack the stability and security of permanent employees, they may not identify with the organization or be as committed or motivated Managers may need to treat contingent workers differently in terms of practices and policies However, with good communication and leadership, an organization’s contingent employees can be just as valuable a resource to an organization as permanent employees are Today’s managers must recognize that it will be their responsibility to motivate their entire workforce, full-time and contingent, and to build their commitment to doing good work!60 No matter what structural design managers choose for their organizations, the design should help employees their work in the best, most efficient and effective way they can The structure needs to help, not hinder, organizational members as they carry out the organization’s work After all, the structure is simply a means to an end MyManagementLab® Go to mymanagementlab.com to complete the problems marked with this icon Review CHAPTER SuMMARy 6-1 Describe six key elements in organizational design The first element, work specialization, refers to dividing work activities into separate job tasks The second, departmentalization, is how jobs are grouped together, which can be one of five types: functional, product, customer, geographic, or process The third—authority, responsibility, and power—all have to with getting work done in an organization Authority refers to the rights inherent in a managerial position to give orders and expect those orders to be obeyed Responsibility refers to the obligation to perform when authority has been delegated Power is the capacity of an individual to influence decisions and is not the same as authority The fourth, span of control, refers to the number of employees a manager can efficiently and effectively manage The fifth, centralization and decentralization, deals with where the majority of decisions are made—at upper organizational levels or pushed down to lower-level managers The sixth, formalization, describes how standardized an organization’s jobs are and the extent to which employees’ behavior is guided by rules and procedures 6-2 Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design A mechanistic organization design is quite bureaucratic whereas an organic organization design is more fluid and flexible The strategy-determines-structure factor says that as organizational strategies move from single product to product diversification, the structure will move from organic to mechanistic As an organization’s size increases, so does the need for a more mechanistic structure The more nonroutine the technology, the more organic a structure should be Finally, stable environments are better matched with mechanistic structures, but dynamic ones fit better with organic structures 6-3 Compare and contrast traditional and contemporary organizational designs Traditional structural designs include simple, functional, and divisional A simple structure is one with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization A functional structure is one that groups similar or related occupational specialties together A divisional structure is one made up of separate business units or divisions Contemporary structural designs include team-based structures (the entire organization is made up of work teams); matrix and project structures (where employees work on projects for short periods of time or continuously); and boundaryless organizations (where the structural design is free of imposed boundaries) A boundaryless organization can either be a virtual or a network organization 6-4 Discuss the design challenges faced by today’s organizations One design challenge lies in keeping employees connected, which can be accomplished through using information technology Another challenge is understanding the global differences that affect organizational structure Although structures and strategies of organizations worldwide are similar, the behavior within them differs, which can influence certain design elements Another challenge is designing a structure around the mind-set of being a learning organization Finally, managers are looking for organizational designs with efficient and effective flexible work arrangements They’re using options such as telecommuting, compressed workweeks, flextime, job sharing, and contingent workers dIScUSSIon QUeSTIonS 6-1 Discuss the six key concepts defining organization design 6-2 Organization design is shaped by management and environment Illustrate why the design might be traditional or contemporary 6-3 Compared to the strengths and weaknesses of a functional structure, what are the strengths and weaknesses of a simple structure? 6-4 Is there any difference between a boundaryless organization and a structureless organization? Explain with examples 6-5 Contrast mechanistic and organic organizations 6-6 Explain the contingency factors that affect organizational design 6-7 With the availability of information technology that allows employees to work anywhere, anytime, is 209 514 Glossary Corporate strategy An organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to with those businesses Cost leadership strategy When an organization competes on the basis of having the lowest costs in its industry Creativity The ability to produce novel and useful ideas Credibility The degree to which followers perceive someone as honest, competent, and able to inspire Critical path The longest or most timeconsuming sequence of events and activities required to complete a project in the shortest amount of time Cross-functional team A work team composed of individuals from various specialties Customer departmentalization Grouping activities by customer D Decentralization The degree to which lowerlevel managers provide input or actually make decisions Decisional roles Entailing making decisions or choices Decision criteria Factors that are relevant in a decision Decision implementation Putting a decision into action Decision-making process A set of eight steps that includes identifying a problem, selecting a solution, and evaluating the effectiveness of the solution Decision trees A diagram used to analyze a progression of decisions When diagrammed, a decision tree looks like a tree with branches Decoding Translating a received message Demographics The characteristics of a population used for purposes of social studies Departmentalization How jobs are grouped together Design thinking Approaching management problems as designers approach design problems Differentiation strategy When an organization competes on the basis of having unique products that are widely valued by customers Directional plans Plans that are flexible and set general guidelines Discipline Actions taken by a manager to enforce an organization’s standards and regulations Distributive justice Perceived fairness of the amount and allocation of rewards among individuals Divisional structure An organizational structure made up of separate business units or divisions Division of labor (or job specialization) The breakdown of jobs into narrow repetitive tasks Downsizing The planned elimination of jobs in an organization E Economic order quantity (EOQ) A model that seeks to balance the costs involved in ordering and carrying inventory, thus minimizing total costs associated with carrying and ordering costs Effectiveness Doing the right things, or completing activities so that organizational goals are attained Efficiency Doing things right, or getting the most output from the least amount of inputs Electronic meeting A type of nominal group technique in which participants are linked by computer Emotional intelligence (EI) The ability to notice and to manage emotional cues and information Employee assistance programs (EAPs) Programs offered by organizations to help employees overcome personal and healthrelated problems Employee benefits Membership-based rewards designed to enrich employees’ lives Employee counseling A process designed to help employees overcome performance-related problems Employee engagement When employees are connected to, satisfied with, and enthusiastic about their jobs Employee productivity A performance measure of both work efficiency and effectiveness Employee recognition programs Programs that consist of personal attention and expressions of interest, approval, and appreciation for a job well done Employee theft Any unauthorized taking of company property by employees for their personal use Employee training A learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job Employment planning The process by which managers ensure they have the right numbers and kinds of people in the right places at the right time Empowerment The act of increasing the decision-making discretion of workers Encoding Converting a message into symbolic form Entrepreneurial ventures Organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals Entrepreneurship The process of starting new businesses, generally in response to opportunities Environmental complexity The number of components in an organization’s environment and the extent of knowledge that the organization has about those components Environmental scanning An analysis of the external environment, which involves screening large amounts of information to detect emerging trends Environmental uncertainty The degree of change and complexity in an organization’s environment Equity theory The theory that an employee compares his or her job’s input-to-outcome ratio with that of relevant others and then corrects any inequity Escalation of commitment An increased commitment to a previous decision despite evidence that it may have been a poor decision Ethical communication Presented material that contains all relevant information, is true in every sense, and is not deceptive in any way Ethics A set of rules or principles that defines right and wrong conduct Ethnicity Social traits, such as one’s cultural background or allegiance, that are shared by a human population Events End points that represent the completion of major activities Expectancy theory The theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual Exporting Making products domestically and selling them abroad External environment Factors, forces, situations, and events outside the organization that affect its performance F Family-friendly benefits Benefits that provide a wide range of scheduling options and allow employees more flexibility at work, accommodating their needs for work-life balance Feedback Checking to see how successfully a message has been transferred Feedback control Control that takes place after a work activity is done Feedforward control Control that takes place before a work activity is done Fiedler contingency model Leadership theory proposing that effective group performance depends on the proper match between a leader’s style and the degree to which the situation allowed the leader to control and influence Filtering Deliberately manipulating information to make it appear more favorable to the receiver First-line managers Supervisors responsible for directing the day-to-day activities of nonmanagerial employees Fixed-point reordering system A method for a system to “flag” the need to reorder inventory at some preestablished point in the process Flextime (also known as flexible work hours) A work scheduling system in which employees are required to work a specific number of hours per week but can vary when they work those hours within certain limits Focus strategy When an organization competes in a narrow segment or niche with either a cost focus or a differentiation focus Foreign subsidiary A direct investment in a foreign country that involves setting up a separate and independent facility or office Formal planning department A group of planning specialists whose sole responsibility is to help write the various organizational plans Formalization How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures Forming stage The first stage of group development in which people join the group and then define the group’s purpose, structure, and leadership Franchising An agreement in which an organization gives another organization the right, for a fee, to use its name and operating methods Functional departmentalization Grouping activities by functions performed Functional strategy Strategy used in an organization’s various functional departments to support the competitive strategy Functional structure An organizational design that groups similar or related occupational specialties together Fundamental attribution error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others Glossary G Gamification Applying typical aspects of game playing to other areas of activity especially in a work setting Gantt chart A planning tool that shows in bar graph form when tasks are supposed to be done and compares that with the actual progress on each General administrative theory Descriptions of what managers and what constitutes good management practice Geographic departmentalization Grouping activities on the basis of geography or territory Global corporation An MNC that centralizes management and other decisions in the home country Global sourcing Purchasing materials or labor from around the world, wherever it is cheapest Global strategic alliance A partnership between an organization and foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities Global village A boundaryless world where goods and services are produced and marketed worldwide GLOBE The Global Leadership and Organizational Behavior Effectiveness research program, a program that studies cross-cultural leadership behaviors Goals (objectives) Desired outcomes or targets Goal-setting theory The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than easy goals Grapevine An unofficial channel of communication Group Two or more interacting and interdependent individuals who come together to achieve specific goals Group cohesiveness The degree to which group members are attracted to one another and share the group’s goals Groupthink When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement Growth strategy A corporate strategy in which an organization expands the number of markets served or products offered either through its current business(es) or through new business(es) H Halo effect When we form a general impression of a person on the basis of a single characteristic Harvesting Exiting a venture when an entrepreneur hopes to capitalize financially on the investment in the venture Hawthorne studies Research done in the late 1920s and early 1930s devised by Western Electric industrial engineers to examine the effect of different work environment changes on worker productivity, which led to a new emphasis on the human factor in the functioning of organizations and the attainment of their goals Heuristics Judgmental shortcuts or “rules of thumb” used to simplify decision making Hierarchy of needs theory Maslow’s theory that there is a hierarchy of five human needs: physiological, safety, social, esteem, and selfactualization Human resource inventory A report listing important information about employees such as name, education, training, skills, languages spoken, and so forth Human resource management (HRM) The management function concerned with getting, training, motivating, and keeping competent employees Hygiene factors Factors that eliminate job dissatisfaction but don’t motivate I Idea champions Individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented Immediate corrective action Corrective action that addresses problems at once to get performance back on track Importing Acquiring products made abroad and selling them domestically Industrial Revolution The advent of machine power, mass production, and efficient transportation beginning in the late eighteenth century in Great Britain Informational roles Involving collecting, receiving, and disseminating information Information overload What results when information exceeds processing capacity Innovation The process of taking a creative idea and turning it into a useful product, service, or method of operation Intergroup development Activities that attempt to make several work groups more cohesive Interpersonal roles Involving people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature Interpersonal skills A manager’s ability to work with, understand, mentor, and motivate others, both individually and in groups Intuitive decision making Making decisions on the basis of experience, feelings, and accumulated judgment ISO 9000 A series of international quality standards that set uniform guidelines for processes to ensure that products conform to customer requirements J Jargon Technical language specific to a discipline or industry Job analysis An assessment that defines jobs and the behaviors necessary to perform them Job characteristics model (JCM) A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes Job description A written statement that describes a job Job design The way tasks are combined to form complete jobs Job enrichment The vertical expansion of a job by adding planning and evaluation responsibilities Job involvement The degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance important for self-worth Job satisfaction An employee’s general attitude toward his or her job Job sharing When two or more people split a full-time job 515 Job specification A written statement of the minimum qualifications that a person must possess to perform a given job successfully Joint venture A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose K Karoshi A Japanese term that refers to a sudden death caused by overworking Knowledge management Cultivating a learning culture in which organizational members systematically gather knowledge and share it with others L Layoff-survivor sickness A set of attitudes, perceptions, and behaviors of employees who survive layoffs Leader Someone who can influence others and who has managerial authority Leader-member exchange (LMX) theory A leadership theory that says leaders create in-groups and out-groups and those in the in-group will have higher performance ratings, less turnover, and greater job satisfaction Leader-participation model A leadership contingency theory that’s based on a sequential set of rules for determining how much participation a leader uses in decision making according to different types of situations Leadership The process of leading a group and influencing that group to achieve its goals Leading Directing and coordinating the work activities of an organization’s people Learning A relatively permanent change in behavior that occurs as a result of experience Learning organization An organization that has developed the capacity to continuously learn, adapt, and change Least-preferred coworker (LPC) questionnaire A questionnaire that measures whether a leader was task or relationship oriented Licensing An agreement in which an organization gives another the right, for a fee, to make or sell its products, using its technology or product specifications Linear programming A mathematical technique that solves resource allocation problems Line authority Authority that entitles a manager to direct the work of an employee Load chart A modified version of a Gantt chart that lists either whole departments or specific resources Locus of control The degree to which people believe they control their own fate Long-term plans Plans with a time frame beyond three years M Machiavellianism (“Mach”) A measure of the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify means Management The process of getting things done, effectively and efficiently, through and with other people Management by objectives (MBO) A process of setting mutually agreed-upon goals and using those goals to evaluate employee performance 516 Glossary Management by walking around (MBWA) When a manager is out in the work area interacting with employees Management information system (MIS) A system used to provide management with needed information on a regular basis Managerial grid A two-dimensional grid for appraising leadership styles Managerial roles Specific categories of managerial behavior; often grouped around interpersonal relationships, information transfer, and decision making Managers Individuals in an organization who direct the activities of others Manufacturing organizations Organizations that produce physical goods Mass production Large-batch manufacturing Matrix structure A structure in which specialists from different functional departments are assigned to work on projects led by a project manager Means-ends chain An integrated network of goals in which higher-level goals are linked to lower-level goals, which serve as the means for their accomplishment Mechanistic organization A bureaucratic organization; a structure that’s high in specialization, formalization, and centralization Message A purpose for communicating that’s to be conveyed Middle managers Individuals who are typically responsible for translating goals set by top managers into specific details that lower-level managers will see get done Mission A statement of an organization’s purpose Motivation The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal Motivators Factors that increase job satisfaction and motivation Multidomestic corporation An MNC that decentralizes management and other decisions to the local country where it’s doing business Multinational corporation (MNC) Any type of international company that maintains operations in multiple countries Myers-Briggs Type Indicator (MBTI) A personality assessment that uses four dimensions of personality to identify different personality types N Need for achievement (nAch) The drive to succeed and excel in relation to a set of standards Need for affiliation (nAff) The desire for friendly and close interpersonal relationships Need for power (nPow) The need to make others behave in a way that they would not have behaved otherwise Network organization An organization that uses its own employees to some work activities and networks of outside suppliers to provide other needed product components or work processes Nominal group technique A decision-making technique in which group members are physically present but operate independently Nonmanagerial employees People who work directly on a job or task and have no responsibility for overseeing the work of others Nonprogrammed decision A unique and nonrecurring decision that requires a custommade solution Norming stage The third stage of group development, which is characterized by close relationships and cohesiveness Norms Standards or expectations that are accepted and shared by a group’s members O Omnipotent view of management The view that managers are directly responsible for an organization’s success or failure Open-book management A motivational approach in which an organization’s financial statements (the “books”) are shared with all employees Open systems Systems that dynamically interact with their environment Operant conditioning A theory of learning that says behavior is a function of its consequences Operations management The study and application of the transformation process Opportunities Positive trends in the external environment Organic organization A structure that’s low in specialization, formalization, and centralization Organization A systematic arrangement of people brought together to accomplish some specific purpose Organization design When managers develop or change the organization’s structure Organization development (OD) Efforts that assist organizational members with a planned change by focusing on their attitudes and values Organizational behavior (OB) The field of study that researches the actions (behaviors) of people at work Organizational change Any alteration of an organization’s people, structure, or technology Organizational citizenship behavior Discretionary behavior that’s not part of an employee’s formal job requirements, but that promotes the effective functioning of the organization Organizational commitment An employee’s orientation toward the organization in terms of his or her loyalty to, identification with, and involvement in the organization Organizational culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act Organizational processes The way organizational work is done Organizing Determining what needs to be done, how it will be done, and who is to it Orientation Introducing a new employee to the job and the organization P Parochialism A narrow focus in which managers see things only through their own eyes and from their own perspective Path-goal theory A leadership theory that says the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the organization’s or group’s goals Pay-for-performance programs Variable compensation plans that pay employees on the basis of some performance measure Perception A process by which we give meaning to our environment by organizing and interpreting sensory impressions Performance management system A system that establishes performance standards that are used to evaluate employee performance Performance-simulation tests Selection devices based on actual job behaviors Performing stage The fourth stage of group development, when the group is fully functional and works on the group task Personality A unique combination of emotional, thought, and behavioral patterns that affect how a person reacts to situations and interacts with others PERT network analysis A flowchart-like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity Planning Defining goals, establishing strategy, and developing plans to coordinate activities Plans Documents that outline how goals are going to be met Policy A guideline for making decisions Political skills A manager’s ability to build a power base and establish the right connections Power An individual’s capacity to influence decisions Principles of management Fayol’s fundamental or universal principles of management practice Proactive personality A personality trait describing those individuals who are more prone to take actions to influence their environment Problem A discrepancy between an existing and a desired state of affairs Problem-solving team A team from the same department or functional area that’s involved in efforts to improve work activities or to solve specific problems Procedural justice Perceived fairness of the process used to determine the distribution of rewards Procedure A series of interrelated, sequential steps used to respond to a structured problem Process consultation Using outside consultants to assess organizational processes such as workflow, informal intra-unit relationships, and formal communication channels Process departmentalization Grouping activities on the basis of work or customer flow Process production Continuous flow or process production Product departmentalization Grouping activities by major product areas Programmed decision A repetitive decision that can be handled using a routine approach Project A one-time-only set of activities with a definite beginning and ending point Project management The task of getting project activities done on time, within budget, and according to specifications Project structure A structure in which employees continuously work on projects Q Quantitative approach The use of quantitative techniques to improve decision making Queuing theory Also known as waiting line theory, it is a way of balancing the cost of having a waiting line versus the cost of maintaining the line Management wants to have as few stations open as possible to minimize costs without testing the patience of its customers Glossary R Race The biological heritage (including physical characteristics, such as one’s skin color and associated traits) that people use to identify themselves Range of variation The acceptable parameters of variance between actual performance and a standard Rational decision making Describes choices that are consistent and value-maximizing within specified constraints Readiness The extent to which people have the ability and willingness to accomplish a specific task Real goals Those goals an organization actually pursues as shown by what the organization’s members are doing Realistic job preview (RJP) A preview of a job that provides both positive and negative information about the job and the company Recruitment Locating, identifying, and attracting capable applicants Referent The persons, systems, or selves against which individuals compare themselves to assess equity Reliability The degree to which a selection device measures the same thing consistently Renewal strategy A corporate strategy that addresses declining organizational performance Resources An organization’s assets that it uses to develop, manufacture, and deliver products to its customers Responsibility An obligation to perform assigned duties Rights view of ethics View that says ethical decisions are made in order to respect and protect individual liberties and privileges Ringisei Japanese consensus-forming group decisions Risk A situation in which a decision maker is able to estimate the likelihood of certain outcomes Role Behavior patterns expected of someone who occupies a given position in a social unit Role ambiguity When role expectations are not clearly understood Role conflicts Work expectations that are hard to satisfy Role overload Having more work to accomplish than time permits Rule An explicit statement that tells employees what can or cannot be done S Satisfice Accepting solutions that are “good enough” Scientific management The use of scientific methods to define the “one best way” for a job to be done Selection process Screening job applicants to ensure that the most appropriate candidates are hired Selective perception Selectively perceiving or hearing a communication based on your own needs, motivations, experiences, or other personal characteristics Self-efficacy An individual’s belief that he or she is capable of performing a task Self-esteem (SE) An individual’s degree of like or dislike for himself or herself Self-managed work team A type of work team that operates without a manager and is responsible for a complete work process or segment Self-monitoring A personality trait that measures the ability to adjust behavior to external situational factors Self-serving bias The tendency for individuals to attribute their successes to internal factors while putting the blame for failures on external factors Service organizations Organizations that produce nonphysical products in the form of services Sexual harassment Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment Shaping behavior The process of guiding learning in graduated steps, using reinforcement or lack of reinforcement Sharing economy An economic environment in which asset owners share with other individuals through a peer-to-peer service, for a set fee, their underutilized physical assets or their knowledge, expertise, skills, or time Short-term plans Plans with a time frame of one year or less Simple structure An organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization Single-use plan A one-time plan specifically designed to meet the needs of a unique situation Situational leadership theory (SLT) A leadership contingency theory that focuses on followers’ readiness Six Sigma A quality standard that establishes a goal of no more than 3.4 defects per million units or procedures Skill-based pay A pay system that rewards employees for the job skills they demonstrate Slack time The time difference between the critical path and all other paths Small business An independent business having fewer than 500 employees that doesn’t necessarily engage in any new or innovative practices and has relatively little impact on its industry Social learning theory A theory of learning that says people can learn through observation and direct experience Social loafing The tendency for individuals to expend less effort when working collectively than when working individually Social media Forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content Social obligation When a business firm engages in social actions because of its obligation to meet certain economic and legal responsibilities Social responsibility (corporate social responsibility, or CSR) A business firm’s intention, beyond its legal and economic obligations, to the right things and act in ways that are good for society Social responsiveness When a business firm engages in social actions in response to some popular social need Span of control The number of employees a manager can efficiently and effectively supervise Specific plans Plans that are clearly defined and leave no room for interpretation Stability strategy A corporate strategy in which an organization continues to what it is currently doing 517 Staff authority Positions with some authority that have been created to support, assist, and advise those holding line authority Stakeholders Any constituencies in an organization’s environment that are affected by that organization’s decisions and actions Standing plans Plans that are ongoing and provide guidance for activities performed repeatedly Stated goals Official statements of what an organization says, and wants its stakeholders to believe, its goals are Status A prestige grading, position, or rank within a group Stereotyping When we judge someone on the basis of our perception of a group to which that person belongs Storming stage The second stage of group development, which is characterized by intragroup conflict Strategic business units (SBUs) An organization’s single businesses that are independent and formulate their own competitive strategies Strategic management What managers to develop an organization’s strategies Strategic management process A six-step process that encompasses strategy planning, implementation, and evaluation Strategic plans Plans that apply to the entire organization and encompass the organization’s overall goals Strategies Plans for how the organization will do what it’s in business to do, how it will compete successfully, and how it will attract its customers in order to achieve its goals Strengths Any activities the organization does well or any unique resources that it has Stress Response to anxiety over intense demands, constraints, or opportunities Stressors Factors that cause stress Strong cultures Cultures in which the key values are deeply held and widely shared Structured problem A straightforward, familiar, and easily defined problem Survey feedback A method of assessing employees’ attitudes toward and perceptions of a change Sustainability A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies SWOT analysis The combined external and internal analyses Symbolic view of management The view that much of an organization’s success or failure is due to external forces outside managers’ control Systems approach An approach to management that views an organization as a system, which is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole T Tactical plans Plans that specify the details of how the overall goals are to be achieved Team-building Using activities to help work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member Team leaders Individuals who are responsible for managing and facilitating the activities of a work team Team structure A structure in which the entire organization is made up of work teams 518 Glossary Technical skills Job-specific knowledge and techniques needed to perform work tasks Technology Any equipment, tools, or operating methods that are designed to make work more efficient Telecommuting A work arrangement in which employees work at home and are linked to the workplace by computer Theory of justice view of ethics View that says ethical decisions are made in order to enforce rules fairly and impartially Theory X The assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to work Theory Y The assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction Threats Negative trends in the external environment Three-needs theory McClelland’s theory, which says that three acquired (not innate) needs—achievement, power, and affiliation— are major motives at work 360-degree appraisal An appraisal device that seeks feedback from a variety of sources for the person being rated Top managers Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members Total quality management (TQM) A managerial philosophy devoted to continual improvement and responding to customer needs and expectations Traditional goal setting Goals set by top managers flow down through the organization and become subgoals for each organizational area Trait theories of leadership Theories that isolate characteristics (traits) that differentiate leaders from nonleaders Transactional leaders Leaders who lead primarily by using social exchanges (or transactions) Transformation process The process that converts resources into finished goods and services Transformational leaders Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes Transnational (borderless) organization A structural arrangement for global organizations that eliminates artificial geographical barriers Trust The belief in the integrity, character, and ability of a leader Turnover Voluntary and involuntary permanent withdrawal from an organization Two-factor theory Herzberg’s motivation theory, which proposes that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction Type A personality People who have a chronic sense of urgency and an excessive competitive drive Type B personality People who are relaxed and easygoing and accept change easily Variable pay A pay system in which an individual’s compensation is contingent on performance Verbal intonation An emphasis given to words or phrases that conveys meaning Virtual organization An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects Virtual team A type of work team that uses technology to link physically dispersed members in order to achieve a common goal Visionary leadership The ability to create and articulate a realistic, credible, and attractive vision of the future that improves on the present situation U Weaknesses Activities the organization doesn’t well or resources it needs but doesn’t possess Wellness programs Programs offered by organizations to help employees prevent health problems “White-water rapids” metaphor A description of organizational change that likens that change to a small raft navigating a raging river Work councils Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel Workforce diversity Ways in which people in a workforce are similar and different from one another in terms of gender, age, race, sexual orientation, ethnicity, cultural background, and physical abilities and disabilities Workplace misbehavior Any intentional employee behavior that is potentially harmful to the organization or individuals within the organization Work specialization Dividing work activities into separate job tasks; also called division of labor Work teams Groups whose members work intensely on specific, common goals using their positive synergy, individual and mutual accountability, and complementary skills Uncertainty A situation in which a decision maker has neither certainty nor reasonable probability estimates available Unit production The production of items in units or small batches Unity of command Structure in which each employee reports to only one manager Unstructured problem A problem that is new or unusual for which information is ambiguous or incomplete Utilitarian view of ethics View that says ethical decisions are made solely on the basis of their outcomes or consequences V Validity The proven relationship between a selection device and some relevant criterion Value The performance characteristics, features, attributes, and other aspects of goods and services, for which customers are willing to give up resources Value chain The entire series of work activities that add value at each step from raw materials to finished product Value chain management The process of managing the sequence of activities and information along the entire value chain W Index Note: When page numbers are followed by the letter e, the reference appears in an exhibit A absenteeism, 290 Accenture, 172, 206 accept errors, 229 achievement cultural differences and, 87 need for, 357, 366 achievement-need theory, 364 achievement-oriented leadership, 393, 394 acid test ratio, 145, 145e active listening, 424, 435 activities, 492 activity ratios, 454e ADHD and work, 367 adjourning stage, 324, 324e affective component, of attitude, 291 affiliation, need for, 357 affirmative action programs, 222 age, workplace diversity and, 97 age cohorts, 62 age discrimination, 97 Age Discrimination in Employment Act of 1967, 97 agreeableness, 295 Airbnb, 60 Alcoa, 489 Alenia Marconi Systems, 484 Alibaba, 376, 418 All Nippon Airways Co., 499 Allstate, 207 The Amazing Race, 89 Amazon, 76, 94, 124, 125, 127, 131, 201, 207, 395, 396 ambiguity, tolerance for, 175–176 AMC Entertainment, 75 American Express (AmEx), 84, 141–142, 141e, 142e, 186, 241, 490 American Medical Association, 450 American Society for Training and Development, 233 American Standard Companies, 484 Americans with Disabilities Act of 1990 (ADA), 98 Amerigas Propane, 244 analysis of context (business plan), 505 analysis of opportunity (business plan), 505 anchoring effect, 117, 117e ancient Egypt, 49 Anheuser-Busch InBev, 86 Apache Corp., 70 Apple, 33, 36, 39, 84, 95, 131, 274, 488 ArcelorMittal, 332 Armstrong, Lance, 178 Armstrong, Neil, 213 artifacts, 67 Asch, Solomon, 327, 330, 339 assertiveness, 88 assumed similarity, 303e, 304 AT&T, 262 attentional processes, 306 attention training, 314 attitudes cognitive dissonance theory and, 292–293 components of, 291 consistency of, 292 explanation of, 291 importance of understanding, 293–294 job-related, 291–292 organizational change and employee, 263 value chain management and, 484–485 attractiveness of reward, 363 attributions, distortion of, 303 attribution theory, 302–303, 302e Australia, 224 authority allocation of, 188–189 concept of, 50 contemporary view of, 190 explanation of, 188 line, 189, 189e, 190e power vs., 190–192, 191e staff, 189, 189e, 190e traditional view of, 188–189 types of, 189, 189e, 190e unity of command and, 189–190 authority power, 210 autonomy, 360 AutoZone, 131 availability bias, 117, 117e, 122 Avery-Dennison, 186 Avon, 281–282 B Baby Boomers, 62, 101, 309 balanced scorecard, 457 Banga, Ajay, 272 Banga, Ajiti, 28 Bank of America, 148, 212 bankruptcy, 36 Barnard, Chester, 53 behavior See also organizational behavior (OB) consistency in, 292 dealing with negative workplace, 309–310 of leaders, 386 learning theories and, 305–307 methods to shape, 307 personality traits and, 297–298 behavioral component, of attitude, 291 behavioral management approach, 51 behavioral theories of leadership, 388 Bell, Alexander Graham, 130 Bell Lab, 297 benchmarking, 164, 450 Bertucci’s, 113 Best Buy, 308 Bezos, Jeff, 124, 125, 395, 396 Bhattal, Jasjit “Jesse,” 105 bias in decision making, 117, 117e self-serving, 117e, 122, 303 big data, 94, 121, 137–138 See also data analytics explanation of, 131–132 as strategic weapon, 165 Big Five model of personality cultural differences and, 299 explanation of, 295–296 Birchbox, 282 Black and Decker, 188, 244 Blanchard, Ken, 390, 391 Blaster-B worm, 46 Bliss, 282 Bloomberg BusinessWeek, 138 Blue Cross of California, 369 Blumenthal, Neil, 179 BMW, 40, 59, 83, 489 board representatives, 225 Bock, Laszlo, 45 body language, 420 Boeing, 201, 225, 241, 332, 346, 499 Boone, Garret, 398 borderless organizations See transnational organizations Boston Consulting Group, 468 boundaries, 202 boundaryless career, 254 boundaryless organizations explanation of, 200e, 202–203 learning in, 205 boundaryless structure, 200e bounded rationality, 119–120 brainstorming, 127, 128 break-even analysis, 143–144, 144e Brigham and Women’s Hospital, 462 Brin, Sergey, 200 British Petroleum, 433 Buckle Inc., 158 budget analysis, 455 Burberry, 177 businesses See organizations business model, 481 business plans, 504–506 business ventures See entrepreneurial ventures BYOD (bring your own device), 427, 428, 429, 455–456, 460 C Caesars Entertainment, 161 Cain, David, 214 “calm waters” metaphor, 263–264 Canada, 223 capabilities, 160 car-buying decisions, 114–116, 114e–116e career, 254 Carl, Fred, 503 Carlton and United Breweries, 489 Carmike Cinemas, 75 Carnival Corporation, 445 519 520 I n d ex Carter, Rob, 397 Caterpillar, 100, 244 Centaline, 409 centralization, 50, 193 certainty, 125 chain of command dual, 201 explanation of, 188 Chandler, Alfred, 195 Chanel, 282 change See also organizational change; organizational change resistance economic uncertainty and unpredictable, 64–65, 64e effects on organizations, 37–38 technological, 37, 261, 261e, 265 workforce, 262 Changqing, Lu, 76 channel, 418 charismatic leadership, 395–396 charismatic power, 211 Chevron, 429 Chicago Cubs, 157 China Zhongwang, 76, 77 Cinemark, 75 Circuit City, 36 Cisco Systems, 122, 185 Civil Rights Act of 1964, Title VII, 97, 98, 243 classical conditioning theory, 304 classical management approach, 50 Clinique, 282 Coca-Cola Company (Coke), 138, 187, 228, 482 codes of ethics, 94–95 coercive power, 210 cognitive component, of attitude, 291 cognitive dissonance, 292 cognitive dissonance theory, 292–293 cohesiveness group, 328–329, 329e team, 339 collaboration, technologically-aided, 333 collectivism explanation of, 87, 88 in-group, 88–89 command chain of, 188 unity of, 50, 189–190 commitment, organizational, 291 communication current issues in, 428–433 customer service and, 431–432 employee input and, 432, 432e from employees, 432 ethical issues in, 432–433 explanation of, 417 face-to-face, 429 grapevine method of, 419 Internet issues related to, 429–430 knowledge management and, 430 knowledge resources and, 430–431 legal and security issues in, 429 methods to facilitate, 423–424 networked, 425–427 nonverbal, 419–420, 424 process of, 417–418, 418e resistance to, 266–267, 272, 272e styles of, 435–436 technology and, 425–430 wireless, 427 written, 418–419 communication barriers emotions as, 421e, 422, 424 filtering as, 421, 421e function of, 420, 421e gender as, 421e, 422 information overload as, 421e, 422 language as, 421e, 422, 424 methods to overcome, 423–424, 423e national culture as, 421e, 422–423 selective perception as, 421–422, 421e communities of practice, 431 compensation, systems for, 238–240 competencies, managerial, 33 competitive advantage, 163 competitive intelligence, 173 competitive strategy, 163 compressed workweeks, 207 concentration, 162 conceptual skills, 33 concurrent control, 453, 461, 463e confirmation bias, 117, 117e conflict strategies to handle, 496–497 on teams, 336–337 conformity, in groups, 327, 330 conscientiousness, 295, 296 consensus, 302 consistency, 302 constraints, 268 The Container Store, 398 contemporary management approaches, 53–54 contingency approach, 54 contingency theories of leadership Fiedler’s, 388–390, 390e leader-participation model, 392, 392e path-goal theory, 393–394, 393e situational, 390–392, 390e contingent workers explanation of, 100, 207–208 motivation of, 368 control balanced scorecard approach to, 457 comparing actual performance to planned goals and, 450, 451e concurrent, 453, 461, 463e contemporary issues related to, 458–463, 461e, 463e cultural differences and, 458–459 of employee performance, 456, 468 entrepreneurs and, 510–511 explanation of, 31, 445 feedback, 453, 457, 461, 463e feedforward, 453, 461 financial, 454–455, 454e importance of, 445–447 of information, 455–456 measuring and, 447–450, 448e performance correction and, 451–452 process of, 447–448, 448e span of, 192–193 timing of, 452–453, 452e control issues cultural differences and, 458–459 employee theft as, 460–461, 461e privacy as, 460 technology and, 459 workplace violence as, 462–463, 463e controlling tool, 455 control process, 447, 448e Cook, Tim, 33, 95 Cooperative Printing, 297 core competencies, 160, 163 Cornell, Brian, 75 corporate rituals, 67 corporate social responsibility (CSR) See social responsibility corporate strategy See also strategies explanation of, 162 role of operations management in, 477 corporations global, 84, 85 multidomestic, 84, 85 multinational, 84, 85 transnational (borderless), 84, 85 cost leadership strategy, 163 Coty, 282 creative-thinking skills, 130 creativity decision making and, 129–130, 134 development of, 135 explanation of, 129 factors that inhibit, 130 planning and, 156 crisis planning, 178 critical path, 492 cross-functional teams, 188, 323, 332 Cucinelli, Brunello, 249 Cult Beauty, 282 cultural differences See also diversity control adjustments based on, 458–459 decision making and, 128–129 Hofstede’s dimensions of, 87, 88 leadership and, 398–399, 399e management of global organizations and, 86–89 motivation and, 366–367 personality attributes and, 299–300 team structure and, 339 culture See also organizational culture descriptive, 66 dimensions of, 66, 87 perceived, 66 shared, 66, 73 value chain management and, 485 current ratio, 145, 145e customer service communication and, 431–432 importance of, 38, 158 as strategic weapon, 160, 161 D Dalgaard, Lars, 429 data analytics, ethics of, 94 See also big data data security, 45–46, 429 Dave & Barry’s, 36 Davis, Keith, 420 DDB Stockholm, 266 debt to assets ratio, 145e, 146 decentralization, 193 decisional roles, 32 decision criteria, 114, 114e decision making See also problems; quantitative decision making big data and, 131–132 bounded rationality in, 119–120 common errors in, 116–117, 117e, 122 conditions for, 125 creativity in, 129–130 cultural differences and, 128–129 design thinking approach to, 131–132 group, 125–129 implementation following, 116 intuitive, 120–121, 120e, 121e organizational culture and, 71, 71e problem identification and, 113–114 rational, 118–119 structured and unstructured problems and, 122 technology and, 121 decision-making process See also problems appraisal of outcome following, 116 choosing best alternative in, 116, 116e explanation of, 113, 113e identifying what is relevant in, 114 weighing criteria and analyzing alternatives in, 114–116, 114e, 115e decisions implementation of, 116 managerial, 124–125, 124e I ndex nonprogrammed, 124 programmed, 123–124 relationship between problems and, 124–125, 125e decision trees, 142–143, 143e decoding, 418 Deere & Company, 483 Def Jam Records, 503 Deininger, Erwin, 38 delegating style, 391 Dell, 84, 171, 241, 483 Dell, Michael, 396 Della Valle, Diego, 120 Deloitte, 407 Delphi, 489 demands, 268–270 Deming, W Edwards, 52, 481 demographics, 62 Denver Mint, 445 departmentalization contemporary view of, 188 explanation of, 186–187 types of, 187–188, 187e DePree, Max, 509 descriptive culture, 66 design thinking explanation of, 131–132 innovation and, 277 developed economies, 62 Dick’s Sporting Goods, 281 differentiation strategy, 163 DineEquity, Inc., 370 direction, motivation and, 353 directional plans, 169 directive leadership, 393, 394 disabilities, 98 discipline, 50, 465–466 discrimination age, 97 against individuals with disabilities, 98 religious, 98 sexual orientation, 99 distinctiveness, 302 distributive justice, 362 diversification, 162 diversity See also cultural differences; workforce diversity overview of, 96–97 racial, 98 in teams, 335 workforce, 96–99 DiversityInc., 106 diversity management, 106–107 divisional structure, 198e, 199 division of labor, 49 division of work, 50 dj Orthopedics de Mexico, 167 Doobop, 282 Dorsey, Jack, 436 Dow Chemical, 490 downsizing, 228, 228e, 241, 241e downturns, 510 dress codes, 326 dual-career couples, 100 Dubai Cup, 137 DuPont, 243 E Eastern Airlines, 36 Economic Espionage Act, 173 economic inequality, 60 economic order quantity (EOQ) model, 148–150, 149e economic performance, social responsibility and, 89–92 economic recessions employee motivation and, 366 organizational change and, 262 strategic management and, 158 unemployment rates and, 64 economy sharing, 60–61 trends in, 60 in United States, 60 EDS, 172 effectiveness efficiency vs., 30, 30e explanation of, 30 understanding learning and, 307 understanding perception and, 308 understanding personality and, 300 efficacy, of teams, 336 efficiency effectiveness vs., 30, 30e understanding attitudes and, 293–294 effort-performance linkage, 363 Ek, Daniel, 43 Electronic Arts (EA), 358 electronic data interchange (EDI), 426 electronic meetings, group decision making and, 128 Eli Lilly, 261 e-mail, 426, 438, 460 emerging economies, trends in, 62 Emma Inc., 202 emotional intelligence (EI), 296–297, 313, 399–401 and leadership, 399–401 emotional stability, 295 emotions as communication barrier, 421e, 422, 424 understanding of, 313 empathy, 297 employee assistance programs (EAPs), 271 employee benefits, 239–240 employee engagement, 40, 291 “employee first” culture, 316 employee productivity, 290 employee recognition programs, 369–370 See also rewards employees See also human resources management (HRM); workforce attitudes of, 263 change in attitudes, expectations and perceptions of, 261, 261e compensation/benefits for, 238–240, 244 contingent, 100.185–186, 368 cost of health care for, 243–244 with disabilities, 98 downsizing and, 228, 228e, 241, 241e empowerment of, 398, 446–447, 509 gaining input from, 432, 432e maintaining connection for mobile and dispersed, 203 monitoring, 459 motivation of, 508–509 nonmanagerial, 28 organizational culture and, 69, 73–74 in organizations, 27 orientation for, 232–233 performance assessment for, 237–239, 237e, 246–247 personalities of, 270 recruitment of, 227, 227e selection of, 228–232, 229e social media use by, 39 theft by, 460–461, 461e value chain management and, 484 working conditions for, 497–498 employee selection closing the deal and, 231–232 explanation of, 228–229, 229e reliability and, 229 tests and interviews in, 230–231 521 validity and, 229–230 employee training determining need for, 234–235, 234e effectiveness of, 235, 240 explanation of, 234 information technology and, 233 methods for, 235, 235e employee turnover, 290 employment See also unemployment rates external environment and, 63–64 part-time, 60 trends in, 60 employment planning, 226 See also human resources management (HRM) empowerment, employee, 398, 446–447, 508 energy, motivation and, 353 engagement, employee, 40, 291 Enron, 36 enterprise resource planning software (ERP) system, 482 ENTJ (extraversion-intuition-thinking-judging), 295 entrepreneurial ventures See also entrepreneurs explanation of, 503 issues involved in leading, 507–509 issues involved in organizing, 506–507 legal issues related to, 506 method to exit, 510–511 entrepreneurs control functions of, 510–511 function of, 504 issues for, 507–508 as leaders, 509 managing personal challenges as, 511–512 personal challenges of, 511 personality type of, 508 planning role of, 504–506 profile of, 503–504 entrepreneurship, 503 environment, external, 59–65 environmental complexity, 65 environmental scanning, 173 environmental uncertainty, 64–65, 64e Equal Employment Opportunity Commission (EEOC), 242, 243 equal employment opportunity (EEO), 222 equity, 50, 362 equity theory, 362, 364, 367 Ericsson, 202 Ernst & Young, 207, 407 errors, decision making, 116–117, 117e, 122 escalation of commitment, 122 ESFP (extraversion-sensing-feeling-perceiving), 295 ESPN, 157, 160 esprit de corps, 50 ethical behavior examples of unethical behavior, 92–93 leadership and, 95, 103–104 managerial role in encouraging, 93–95 trends in, 81, 82 ethical issues in communication, 432–433 data analytics as, 94 employee rights as, 225 faking positive outlook as, 293 financial scandals as, 89 open management as, 193 retail customer tracking as, 165 sharing personal information as, 325 ethics codes of, 94–95 explanation of, 93 perspectives on, 93 rights view of, 93 theory of justice view of, 93 utilitarian view of, 93 ethics training, 96 522 I n d ex ethnicity, 98 Evans Findings Company, 476 events, 492 executive summary (business plan), 504, 505 expectancy theory, 363–364, 363e, 371 expertise, 130 expert power, 211 exporting, 84 external boundaries, 202 external environment components of, 59–60, 59e demographics and, 62–63 economic inequality and, 60 environmental scanning and, 173 environmental uncertainty and, 64–65, 64e explanation of, 59 impact on managers of, 63–64 jobs and employment and, 63–64 planning issues and, 172 sharing economy and, 60–61 stakeholder relationships and, 65 extinction, 307 extranet, 427 extraversion, 295 extraversion vs introversion (EI), 295 EY, 242 eye contact, 435 F Facebook, 39, 68, 94, 164, 212, 225, 274, 407 factory of the future, 487 factories, working conditions, 497–498 Fair Labor Association, 95 family-friendly benefits, 100 fax machines, 426 Fayol, Henri, 50, 185 Federal Express (FedEx), 34, 243, 244, 369, 397, 462 feedback advantages of, 457 explanation of, 418 to facilitate communication, 423–424 job dimensions and, 360 self-generating, 358 feedback control, 453, 461, 463e feedforward control, 453, 461 Ferguson, Alex, 408 Fiedler, Fred, 54, 389, 390, 393 Fiedler contingency model, 389–390, 390e filtering, 421, 421e financial control, 454–455, 454e financial data (business plan), 505 financial globalization, 84 financial goals, 166 financial scandals, ethical behavior and, 89 first-line managers, 29, 34 Fitzgerald, Patrick, 46 fixed-point reordering system, 148 flexible work arrangements, 64, 368, 484 benefits and drawbacks of, 212 compressed work weeks, flextime, and job sharing as, 207 contingent workforce and, 207–208 overview of, 206 telecommuting and, 206–207 flextime, 207 focus strategy, 163 Follett, Mary Parker, 51 followers, 402, 403 Ford, Henry, 450 Ford Australia, 186 Ford Motor Company, 52, 83 foreign subsidiaries, 86 formalization, 193 formal planning, 155 See also planning formal planning department, 171 Foxconn, 283 framing bias, 117, 117e France Télécome, 282–283 franchising, 84 Freeze, Hugh, 436 Fulks, Kip, 281 full business plan, 504–506 functional departmentalization, 187, 187e functional strategy, 163–164 functional stress, 268 functional structure, 198e, 199 The Functions of the Executive (Barnard), 53 fundamental attribution error, 303 future orientation, 88 G Gallup Organization, 40 gamification, 233, 369 Gantt chart, 491, 491e Gap, 122, 498 Gass, Michelle, 276 Gates, Bill, 508 Gawker, 74 gender as communication barrier, 421e, 422 in workforce, 98 gender differentiation, 88 general administrative theory, 50 General Cable Corporation, 489 General Electric (GE), 192, 202, 453, 490 General Mills, 243 General Motors, 241 Gen X, 62 Gen Y, 62, 101, 308, 309, 309e, 407 Gen Z, 62 geographic departmentalization, 187–188, 187e Georgia Tech, 487 Germany, 224–225 Ghosn, Carlos, 450 Gilboa, David, 179 Gimbel’s, 36 Giuliani, Rudolph, 400 GLBT (gay, lesbian, bisexual, and transgender) people, in workplace, 99 global corporations, 84, 85 globalization approaches to, 84, 84e, 86 explanation of, 83 financial, 84 marketplace, 83–84 of supply chain, 487 talent, 84 Global Leadership and Organizational Behavior Effectiveness (GLOBE), 88–89, 399 global organizations control issues in, 458–459 cultural differences and, 87–89 demographic trends and, 62–63 explanation of, 83–84 external environment and, 59 global corporations as, 85 human resource management laws and regulations in, 223–225 management concepts and, 35 management of, 86, 88 multidomestic corporations as, 85 organizational structure in, 203 sales in, 83 steps to become, 84, 84e, 86 teams in, 338–340, 339e transnational, 85 global sourcing, 84 global strategic alliance, 86 global village, 83 GLOBE research program, 88–89, 399 goals comparing actual performance to planned, 450, 451e explanation of, 165 financial, 166 of organizations, 27 planning and, 155 stated, 166 strategic, 166 types of, 166 of value chain management, 479 well-written, 168, 168e goal setting management by objectives, 167–168 steps in, 168 traditional, 166–167, 166e goal-setting theory, 358–359, 359e Goldman Sachs, 93 Google, 36, 39, 44–45, 65, 76, 94, 200, 212, 225, 244, 274, 314, 453 government regulations, as impetus for change, 262 grapevine, 419 Gravity Payments, 375 Green Earth Gardening Supply, 450, 451e group decision making advantages and disadvantages of, 126–127 cultural differences and, 129 effectiveness of, 127 overview of, 125–126 techniques to improve, 127–128 groups See also teams behaviors in, 289 cohesiveness of, 328–329, 329e command, 323e conformity in, 327, 330 developmental stages of, 323–325, 324e explanation of, 323 formal work, 323, 323e informal, 323 members of, 324–325 norms in, 326 research on dynamics in, 264 roles in, 326 size of, 328 status systems in, 327 task, 323e teams vs., 331–332, 331e groupthink, 126–127 Grupo Televisa, 170 H habit, 267 Hackman, J Richard, 359, 360 Hallmark, 186 halo effect, 303e, 304 Harrah’s Entertainment, 161 Harris Interactive, 60 harvesting, 510 Hasbro, 131 Hastings, Reed, 468 Hawthorne Studies, 51 HCL Technologies, 316 health care, costs of employee, 243–244 health care industry, 344 health care legislation, 60 Health Net Inc., 204 Hennes & Mauritz (H&M), 497, 498 Herman Miller, Inc., 509 Hersey, Paul, 390, 391 Herzberg, Frederick, 355, 356, 367 heuristics, 116 I ndex Hewlett-Packard, 83, 201, 233, 274, 332 hierarchy of needs theory (Maslow), 354–355, 354e hindsight bias, 117e, 122 hiring process See human resources management (HRM) H&M, 497 Hobean, Claire, 37 Hofstede, Geert, 87, 88 Holland, John, 298–299 Hollywood Video, 36 Home Depot, 262 Hong Kong Police Force, 250 Hooters, 225 Hootsuite, 69 horizontal integration, 162 Hsieh, Tony, 77, 366 Huang, Jen-Hsun, 453 Hulu, 262 humane orientation, 89 human relations movement, 51 human resource inventory, 226 human resources management (HRM) See also employees; employee selection components of, 221, 221e cost control and, 243–244 diversity and, 242 downsizing and, 228, 228e, 241, 241e employee compensation/benefits and, 238–240, 244 employee orientation and, 232–233 employee training and, 234–235, 234e, 235e, 240 employment planning and, 225–227 entrepreneurs and, 507 ethical issues in, 225 explanation of, 221–222 innovation and, 276 legal environment of, 222–225, 223e performance management approaches and, 236–238, 237e recruiting sources and, 227, 227e selection process and, 228–232, 229e sexual harassment and, 242–243 technology and, 233 Humphrey, Ambrosia, 69 hygiene factors, 356, 356e Hyundai Motor, 171 I IBM, 157, 172, 244, 363, 420 idea champions, 276 IDEO, 430 Idezawa, Takeshi, 122 Iger, Bob, 27 IKEA, 481 IMAX Corporation, 75–76 immediate gratification bias, 117, 117e Immelt, Jeff, 453 importing, 84 Inc., 503 incubation, 273 Inditex, 498 individual behavior, 289 individualism, 87, 88 individualized rewards, 369 individuals with disabilities, 98 industrial-organizational psychology, 224 Industrial Revolution, 49 inequality, economic, 60 informal planning, 155 information, control of, 455–456 informational roles, 32 information overload, 421e, 422 information power, 211 information technology (IT) See also technology big data and, 131–132, 165 changing world of work and, 204 decision making and, 121 employee training and, 233 impact of, 54, 63 strategic management and, 161 team collaboration and, 333 in-group collectivism, 88–89 initiative, 50 innovation creativity and, 273 design thinking and, 277 elements of, 273–274 human resource variables affecting, 276 manager’s role in, 39 methods to foster, 274–275, 275e organizational culture and, 275–276 overview of, 272–273 technology and, 39, 274 inspiration, 274 Instagram, 39 instant messaging (IM), 426 Institute for Global Ethics, 94 Integrated Information Systems Inc., 458 integration, 162 integrity, 401 Intel, 368 intelligence, emotional, 400–401 intergroup development, 266 internal analysis, function of, 160 internal boundaries, 202 International Association of Business Communicators, 433 International Organization for Standardization, 489 international organizations See global organizations Internet, communication issues and, 429–430 Internet of things, 63 interpersonal demands, 270 interpersonal roles, 32 interpersonal skills, 33, 42 interviews, 230–231 intranet, 426 intrinsic task motivation, 130 Intuit, 277 intuition, planning and, 156 intuitive decision making, 120–121, 120e, 121e inventory turnover ratio, 145e, 146 Ipsen, Laura, 122 ISO 9000, 489–490 ISTJ (introversion-sensing-thinking-judging), 295 ITT Industries, 490 Ive, Jonathan “Jony,” 131 J Jago, Arthur, 392 Japan, earthquake and tsunami in, 83 J.C Penney, 497 Jean, Emilio Azcárraga, 170 job analysis, 226 job applicants, identification of organizational culture by, 73–74 job characteristics model (JCM), 360–361, 361e job description, 226 job design motivation and, 359–361, 361e, 364 work tasks and, 360 job involvement, 291 job orientation, 232–233 job performance assessment of, 237–239, 237e, 246–247 attitude and, 291–294 conscientiousness and, 296 523 control of, 456, 468 keeping track of, 456–457 measurement of, 447–450, 448e method to correct actual, 451–452 job-person compatibility, 300 jobs division of labor and, 49 external environment and, 63–64 matching personality to, 298–299, 299e stress related to, 207 Jobs, Steve, 396 job satisfaction explanation of, 290 productivity and, 294 job sharing, 207 job specialization, 49 job specification, 226 Johnson, Kara, 430 Johnson & Johnson, 242, 282, 490 joint venture, 86 Jones, Todd, 37 judging vs perceiving (JP), 295 judgment, decision making and, 115–116 Juran, Joseph M., 52 justice, 362 K Kaiser Aluminum, 192 Kaiser Permanente, 344 karoshi, 269 Katz, Robert, 33 Kellogg, W K., 161 Kelly Services, 369 Kent, Muhtar, 482 Kenyi, Stella, 308 Kerviel, Jérôme, 92 Keurig Green Mountain, 105–106 KFC, 86, 370 King, Martin Luther Jr., 396 Kitsplit, 61 Knight, Rick, 467 knowledge resources for, 430–431 skills, and abilities (KSAs), 239 knowledge management, 430 Kohl’s Corporation, 276 KPMG, 207 Kraft Foods, 331 L labor markets, organizational change and, 262 Land Rover, 301 language differences, 421e, 422 laptop hobos, 206 large businesses, 35 layoffs, 228 layoff-survivor sickness, 241 Lazaridis, Mike, 276 leader-member exchange (LMX) theory, 395 leader-member relations, 389 leader-participation model, 392, 392e leadership achievement-oriented, 393, 394 assessing your style of, 405–406 charismatic, 395–396 contemporary views on, 394–401, 398e, 399e cross-cultural, 398–399, 399e decision making and, 118, 118e directive, 393, 394 emotional intelligence and, 399–401 entrepreneurial, 509 ethical, 95 ethical behavior and, 95, 103–104 explanation of, 385 524 I n d ex leadership (continued) in learning organizations, 205 participative, 393 supportive, 393, 394 in teams, 334–335, 397, 398e transactional, 395–396 trust and, 401–403, 402e value chain management and, 483–484 virtual, 400 visionary, 395–396 Leadership Jazz (DePree), 509 leadership theories behavioral, 388 contingency, 389–394, 390e, 392e, 393e trait, 386–387 leading, 31 learning, 305 learning organizations characteristics of, 205, 205e explanation of, 204 least-preferred coworker (LPC) questionnaire, 389 Lechleiter, John, 261 Lee, 497 Lee, Julia, 207 legal issues, for entrepreneurial ventures, 506 Legge, Katherine, 303 legislation affecting human resource management, 222–225, 223e health care, 60 as impetus for change, 262 Lehman Brothers, 104, 105 leverage ratios, 145–146, 145e, 454e Levi-Strauss, 243 Lewin, Kurt, 263, 264 licensing, 84 linear programming, 146–147, 147e line authority, 189, 189e, 190e LinkedIn, 39, 274 liquidity, 145 liquidity ratios, 145e, 454 listening, active, 424, 435 LiveOps, 207 Livestrong Foundation, 178 load chart, 491, 492e Lockheed Martin, 34, 243, 244, 338 locus of control, 297 Logitech, 128 Lombard, Didier, 282–283 long-term orientation, 87 long-term plans, 169 Louis Vuitton, 201 Lowe’s, 262 loyalty, 401 Lululemon, 468–469 M Machiavelli, Niccolo, 297 Machiavellianism (“Mach”), 297 Mackey, John P., 429 management See also operations management; organizations; value chain management (VCM) concepts of, 35 diversity, 106–107 effect of change on, 37–38 explanation of, 29–30 of global organizations, 86–89 historical background of, 29, 49–54 levels of, 28, 28e, 124–125 omnipotent view of, 61 open-book, 369 project, 490–491 reasons to study, 36–37 scientific, 29 of stakeholder relationships, 65, 68, 68e strategic, 157–160, 159e, 162–163 sustainability and, 40 symbolic view of, 61 technology and, 37, 38, 54, 63 management approaches behavioral, 51 classical, 50 contemporary, 53–54 quantitative, 52 management by objectives (MBOs), 167–168 management by walking around (MBWA), 447–448 management principles (Fayol), 50, 50e managerial grid, 388 managerial information system (MIS), 455 managers background of, 27 characteristics of effective, 44–45 competencies of, 33 contemporary communication issues faced by, 428–433 with contingent employees, 207–208 decision-making approaches for, 118–120, 118e efficiency and effectiveness of, 30, 30e encouragement of ethical behavior by, 93–95 explanation of, 28 external environment and, 63–65 first-line, 29, 34 fostering of innovation by, 274 function of, 32 innovative, 39 in large businesses, 35 levels of, 28, 28e, 124–125 middle, 28–29, 34 nonmanagerial employees vs., 28 organizational culture and, 69–71, 71e planning function and, 170, 170e political skills of, 33, 42–43 roles of, 35, 35e skills of, 33 in small businesses, 34–35 social media use by, 39 societal expectations of, 89–92 team building by, 342–343 titles of, 28–29 top, 28, 34 Manchester United Football Club, 408 mandated experiment time, 274 manufacturing organizations, 476, 477 marketplace globalization, 83–84 Mars Chocolate North America, 123 Mary Kay Cosmetics, 358, 396 Maslow, Abraham, 51, 354, 366 Massachusetts General Hospital, 84 Massachusetts Institute of Technology, 420 mass production, 197 Mastercard, 242, 272 matrix structures, 200e, 201–202, 201e Matsuba, Naoki, 105 Mattel, 207 maximax choice, 141, 142 maximin choice, 141 Mayer, Marissa, 212 Mayo, Elton, 51 McClelland, David, 357 McCoy, Sherilyn, 282 McDonald’s, 83, 155, 166, 186, 241, 453, 487 McGregor, Douglas, 51, 355 McQueen, Alexander, 177 means-ends chain, 167 mechanistic organizations, 194e, 195 meetings, electronic, 128 Memorial Sloan-Kettering Cancer Center, 34 Menard’s, 262 Mercedes, 489 Mercedes-Benz, 157 Merck, 241 message, 418 Mexico, 223–224 Meydon Hotel, 137 Microsoft, 241, 508 middle managers See also managers explanation of, 28–29, 34 planning function of, 170, 170e, 171 Midvale Steel Company, 450 Millennials, 407 Mintzberg, Henry, 32 misbehavior, workplace, 290 mission culture and, 67 of organization, 158 mission statements, 159, 159e Mitsubishi, 242 mobile devices data security and, 45–46, 429 human resource management and, 233 movies on, 75, 76 work applications for, 204 monitoring employees, 459 Moritz, Bob, 106, 107 Morrisons, 439 Morse, Samuel, 54 motivation assessing your level of, 373–374 of contingent workers, 368 cross-cultural issues and, 366–367 economic conditions and, 366 entrepreneurs and employee, 508–509 explanation of, 353 intrinsic task, 130 job design and, 359–361, 361e, 364 of professionals, 368 rewards and, 293, 369–371 workforce diversity and, 367–368 motivation theories equity, 362, 362e expectancy, 363–3364, 363e goal-setting, 358–359, 359e hierarchy of needs, 354–355, 354e integration of, 364, 365e method to integrate, 364, 365e Theory X, 355 Theory Y, 355 three-needs, 357 two-factor, 355–357, 356e Motorola, 34, 201, 243, 244, 490 motor reproduction processes, 306 motor-vehicle decisions, 114–116, 114e–94e movie theater industry, 75–76 multidomestic corporations, 84, 85 multinational corporations (MNCs), 84, 85 Munsterberg, Hugo, 51, 224 Mycoskie, Blake, 89 Myers-Briggs Type Indicator (MBTI), 294–295 N National Aeronautics and Space Administration (NASA), 213 national culture See also cultural differences as communication barriers, 421, 422–423 leadership and, 398–399, 399e National Football League, 93 National Rural Electric Cooperative Association, 308 natural disasters, 83 Nayar, Vineet, 316 NCAA (National Collegiate Athletic Association), 127, 437 NCR, 244 negative behavior, 307 Neil Huffman Auto Group, 235 I ndex Nestlé, 128, 483 Netflix, 76, 377, 468 networked communication, 425–427 network organizations, 202 networks, development of, 42 New York Times poll, 60 Nielsen Media Research, 265 Nike, 36, 178, 187 Nissan Motors, 59, 166, 450 Nokia, 262, 432, 490 nominal group technique, 127 Nomura Holdings, 104–105 nonmanagerial employees, 28 See also employees nonprogrammed decisions, 124 nonverbal communication, 419–420, 424 Nooyi, Indra, 401 norming stage, 324, 324e norms, in groups, 326 North American Tool, 267 Northrup Grumman Corporation, 489 not-for-profit organizations, 34 Nvidia, 453 O objectives See goals office of tomorrow, 428 Ohio State University, 388 Oldham, Greg R., 359, 360 omnipotent view of management, 61 on-the-job training, 235 open-book management, 193, 369 open management, 193 openness, 401 openness to experience, 295, 296 open systems, 52, 52e operant conditioning, 304, 305 operating ratios, 145e, 146 operational business plan, 504–505 Operation HoneyStick (Symantec), 46 Operations Center East (OCE) (Visa), 467 operations management See also value chain management (VCM) contemporary issues in, 486–494, 488e, 491e–494e corporate strategy and, 477 explanation of, 475, 475e productivity and, 476, 477 service and manufacturing firms and, 475–476 technology and, 486–487 opportunities, 160, 268 oral reports, 448–449 order, 50 organic organizations, 194e, 195 organizational behavior (OB) dealing with negative, 309–310 explanation of, 51, 289 focus of, 185, 289 generational differences and, 308–309, 309e goals of, 290 organizational change “calm waters” metaphor for, 263–264 catalysts of, 263 categories of, 261, 261e employee stress and, 268–271, 269e (See also stress) explanation of, 261 external forces and, 262 implementation of planned, 265–266 internal forces and, 262–263 research on, 264 technology and, 37, 204, 261, 261e, 265 three-step process of, 263, 264e “white-water rapids” metaphor for, 265 organizational change resistance management of, 266–267 reasons for, 267 techniques to reduce, 267, 272, 272e organizational citizenship behavior, 290 organizational commitment, 291 organizational culture See also culture decision making and, 71, 71e dimensions of, 66, 67 employees and, 69, 73–74 explanation of, 66 innovation and, 275–276 in learning organizations, 205 managers and, 69–71, 71e method to identify, 73–74 value chain management and, 484–485 organizational design authority and responsibility and, 188–192, 189e–192e boundaryless, 200e, 202–203, 205 centralization vs decentralization and, 193, 197–198 challenges in, 203–208 contemporary, 199–200, 200e departmentalization and, 186–188, 187e divisional structure, 198e, 199 for entrepreneurial ventures, 507 explanation of, 185 flexible work arrangements and, 206–208, 212 functional structure, 198e, 199 global differences in, 203 in learning organizations, 205 matrix structure, 200e, 201–202, 201e project structure, 200e, 201–202, 201e simple structure, 198–199, 198e span of control and, 192–193 team structure, 200–201, 200e technology and, 196, 197, 197e traditional, 198–199, 198e variables affecting choice of, 194–196, 194e work specialization and, 185–186, 186e organizational development (OD), 265–266 organizational performance, 157 organizational processes, 483 organizational stakeholders, management of, 65, 68, 68e organizational structure See organizational design; structure organization orientation, 233 organizations See also global organizations boundaryless, 200e, 202–203, 205 characteristics of, 27, 27e downturns in, 510 explanation of, 27 learning, 204–205, 205e levels in, 33–34 manufacturing, 476 mechanistic, 194e, 195 network, 202 not-for-profit, 34 as open system, 52, 52e organic, 194e, 195 for profit, 34 service, 84, 86 size of, 34–35 societal expectations of, 89–92 sustainability in, 40 transformation process in, 476 virtual, 202 organizing, 31 orientation future, 88 humane, 89 long-term vs short-term, 87 new-employee, 232–233 performance, 89 525 ORION technology, 136–137 over-confidence bias, 117, 117e overtalking, 436 Owen, Robert, 51 Oxender, Monique, 105 P Page, Larry, 200 Panera Bread, 39 paraphrasing, 435 parochialism, 86 participating style, 391 participative leaders, 393 part-time employment, 60 Patel, Keyur, 206 path-goal theory, 393–394, 393e Paychex, 243 pay-for-performance programs, 370–371 payoff matrices, 141–142, 141e, 142e Pella Corporation, 476, 477 pension plans, 244 Penske Truck Leasing, 203 PepsiCo, 138, 332, 401 perceived culture, 66 perception attribution theory and, 302–303, 302e explanation of, 273, 301, 301e factors influencing, 301 selective, 304 perceptual shortcuts, 303–304, 303e performance See also job performance comparing planned goals to actual, 450, 451e control of, 456, 468 measurement of, 447–450, 448e method to correct actual, 451–452 performance orientation, 89 performance-simulation tests, 230 performing stage, 324, 324e persistence, motivation and, 353 personal appearance, 225 personality Big Five model of, 295–296, 299 cultural differences and, 299–300 emotional intelligence and, 296–297, 313 of entrepreneurs, 508 explanation of, 294 managerial efficiency and understanding, 300 matching jobs to, 298–299, 299e Myers-Briggs Type Indicator of, 294–295 predicting work-related behaviors and, 297–298 proactive, 508 type A, 270 type B, 270 personality-job fit (Holland), 298–299, 299e personal observation, 447–448 PERT network analysis, 492–494, 493e, 494e Pfizer, 214, 483 Phat Farm, 503 Pizza Hut, 370 planning See also strategic management approaches to, 170–171 benefits of, 155 contingency factors in, 170 criticisms of, 156–157, 156e decision making and, 118, 118e directional, 169 in dynamic environments, 172 for entrepreneurial ventures, 504–506 environmental scanning and, 173 explanation of, 31, 155 526 I n d ex planning (continued) formal, 155, 171 goal setting and, 165–168, 166e long-term, 169 managerial level and, 170, 170e short-term, 169 single-use, 169 specificity of, 169 standing, 169 strategic, 157, 169 tactical, 169 planning tool, 455 plans business, 504–506 development of, 170–171 process to develop, 170–171 types of, 168–169, 169e, 504–505 policies, 123–124 political skills explanation of, 33 for managers, 42 steps to develop, 42–43 Popchips, 207 population trends, 62–63 Porsche, 166 Porter, M E., 163 Portteus, Chandini, 178 position power, 389 positive reinforcement, 307 power authority, 210 authority vs., 190–192.169e charismatic, 211 coercive, 210 expert, 211 explanation of, 190 information, 211 need for, 357 referent, 211 reward, 210 skills to gain, 210–211 types of, 192, 192e in value chain, 479 power distance, 87, 88, 129 Prada, 161 Price, Dan, 375 PricewaterhouseCoopers (PwC), 106–107, 468 Primark, 177 Principles of Scientific Management (Taylor), 29 privacy control issues and, 460 data analytics and, 94 proactive personality, 508 problems See also decision making; decision-making process; decisions decision making, organizational level and, 124–125, 125e explanation of, 113 structured, 122, 123 unstructured, 122 problem-solving teams, 332 procedural justice, 362 procedures, 123 process consultation, 266 process departmentalization, 187e, 188 processes, 30 process production, 197 Procter & Gamble, 242 product departmentalization, 187, 187e production mass, 197 process, 197 unit, 197 productivity explanation of, 290 job satisfaction and, 294 operations management and, 476, 477 trends in, 60 work specialization and, 186, 186e professionals, methods to motivate, 368 profitability ratios, 454e profit margin on revenues ratio, 145e, 146 programmed decisions, 123–124 project management, 490–491 Project Oxygen (Google), 44–45 project structures, 201–202, 201e Protiviti, 248 Publix Super Markets, 37 punishment, 307 Q quality goals for, 489–490 operations management and, 488–489 product, 488e service, 488e as strategic weapon, 161, 164 quality of life, 87 quantitative decision making break-even analysis and, 143–144, 144e decision trees and, 142–143, 143e economic order quantity model and, 148–150, 149e linear programming and, 146–147, 147e payoff matrices and, 141–142, 141e, 142e queuing theory and, 148 ratio analysis and, 144–146, 145e quantitative management approach, 52 quantity of life, 87 queuing theory, 148 R race, 98 racial diversity, 98 RadioShack, 178 Rana Plaza building collapse, 497–498 randomness bias, 117e, 122 Randstad USA, 315 ratio analysis, 144–146, 145e, 454, 454e rational decision making, 118–119 rationality, bounded, 119–120 ratios, 145e readiness, 391 realistic job preview (RJP), 232 recruitment, 227, 227e See also human resources management (HRM) Red Cross, 34 Red Robin Gourmet Burgers, 164 referent, 362 referent power, 211 Regal Entertainment Group, 75 Reimers Electra Steam, 38 reinforcement, 307 reinforcement processes, 306 reinforcement theory, 364, 370 reject errors, 229 relationship oriented style, 389 reliability, 229 religion, in workplace, 98 remuneration, 50 renewal strategy, 163 representation bias, 117e, 122 resources explanation of, 160 for knowledge, 430–431 for teams, 334 responsibility, 188 retail industry, 165 retention processes, 306 Re-Time Pty Ltd., 37 retrenchment strategy, 163 return on investment ratio, 145e, 146 reward power, 210 rewards cognitive dissonance and, 293 cultural differences and, 367 designing programs for, 369–371 equity theory and, 364 individualized, 369 in teams, 338 Richard, Stéphanie, 283 rights view of ethics, 93 Riley, Mike, 436 ringisei, 129 risk, decision making and, 125 risk taking, 298 Ritz-Carlton Hotels, 431 robotic technology, 38, 472–473 role ambiguity, 269 role conflicts, 269 role demands, 269 role overload, 269 roles in groups, 326 managerial, 32 Rosedale, Philip, 202 Rovello, Jessica, 438 ROWE (results-only work environment), 30 rules, 123 Russell Simmons Argyle Culture, 503 S Saint-Gobain Performance Plastics, 483 SAS Institute, 368 satisfice, 119, 120 Sawhney, Rajeev, 316 scalar chain, 50 SCAN Health Plan, 206 Schultz, Howard, 500 scientific management, 29, 50, 224 Scottrade, 262 Seattle Post-Intelligencer (P-I), 37 Second Life, 202 security issues, 429, 456, 467 selection See employee selection selective perception as communication barrier, 421–422, 421e explanation of, 304 selective perception bias, 117, 117e selectivity, 303e self-awareness, 296 self-efficacy, 359 self-esteem (SE), 297–298 self-generating feedback, 358 self-knowledge, 314 self-managed teams, 332 self-management, 296 self-monitoring, 298 self-motivation, 297 self-serving bias, 117e, 122, 303 selling style, 391 sensing vs Intuition (SN), 295 service organizations, 84, 86 Seven and i Holding, 458 7-Eleven, 458 sexual harassment, 242–243 sexual orientation, 99 shared culture, 66, 73 sharing economy, 60–61 Shibata, Takumi, 105 I ndex short-term orientation, 87 short-term plans, 169 Siemens, 241 Simmons, Russell, 503 Simon, Herbert A., 120 simple structure, 198–199, 198e sincerity, 42 Singapore Airlines, 36 single-use plans, 169 situational approach See contingency approach situational leadership theory (SLT), 390–392, 390e Six Sigma, 490 SIY (Search Inside Yourself) course, 314 size, of organizations, 34–35 skill-based pay systems, 239 skills, 33 skill variety, 360 Skinner, B F., 304 Slumdog Millionaire, 316 Small Business Administration, 504 small businesses, 34–35 See also entrepreneurial ventures; organizations Smart Grid, 122 smartphones, data security and, 45–46 SnapGoods, 60, 61 social learning theory, 306 social loafing, 339 social media, 233, 429–430 data analytics and, 94 guidelines for use of, 39–40 as strategic weapon, 164–165 social networks, 233 social obligation, 90 social responsibility arguments for and against, 90–92, 91e explanation of, 89–90 social responsiveness, 90 social skills, 297 Société Générale, 92 Society for Industrial and Organizational Psychology, 224 Sodexo, 242 software mobile traffic, 65 network security, 46 Sony, 150, 490 sourcing, global, 84 specific plans, 169 Spotify, 43, 44 Springfield Remanufacturing Company (SRC), 369 St Louis Cardinals, 345 stability, of tenure of personnel, 50 stability strategy, 162 staff authority, 189, 189e, 190e Staff Builders, 189 stakeholders explanation of, 65 managing relationships with, 65, 68, 68e standing plans, 169 Starbucks, 36, 65, 500 Starcom MediaVest Group, 430 stated goals, 166 statistical reports, 448 status in groups, 327 in teams, 339 Steinhafel, Gregg, 74 stereotyping, 303e, 304 Stewart, Julia, 370 stocking out, 148 Stone, Biz, 436 storming stage, 324, 324e strategic alliance, global, 86 strategic goals, 166 strategic management See also planning competitive strategy and, 163 corporate strategy and, 162–163 explanation of, 157 functional strategy and, 163 importance of, 158 strategic “weapons” for, 160–161, 164, 165 technology and, 161 strategic management process explanation of, 158 steps in, 158–160, 159e strategic plans See also planning explanation of, 169 function of, 157 strategic weapons big data as, 165 customer service as, 160, 161 overview of, 160–161 quality as, 161, 164 social media as, 164–165 strategies competitive, 163 corporate, 162–163 explanation of, 157 functional, 163 strengths, 160 stress causes of, 269–270 in entrepreneurs, 511 explanation of, 268 functional, 268 organizational change and, 268–271, 269e symptoms of, 269, 269e techniques to reduce, 272, 272e, 279–280 telecommuting and, 207 workplace, 271, 279–280 stress management programs, 270 stressors, 269–270 structure See also organizational design boundaryless, 200e change in, 261, 261e divisional, 198e, 199 of entrepreneurial ventures, 506–507 functional, 198e, 199 in global organizations, 203 innovation and, 275, 275e learning, 200e matrix, 200e, 201–202, 201e project, 200e, 201–202, 201e simple, 198–199, 198e stress and, 270 team, 200–201, 200e, 339 structured problems, 122, 123 subordination of individual interests to the general interest, 50 Suburban Hospital, 332 Subway, 86 SuccessFactors, 429 Sultan Qaboos University, 280 summary business plan, 504 SuperValu, 39 supply chain, globalization of, 83, 487 supportive leadership, 393, 394 survey feedback, 266 Susan G Komen Foundation, 178 sustainability explanation of, 92 in management, 40 pod-based coffee machines and, 105–106 SWOT analysis, 160 Sylvan, John, 105 Symantec Corporation, 46 symbolic view of management, 61 symbols, 67 synopsis (business plan), 504 systems approach, 53 T 527 Taco Bell, 157, 370 tactical plans, 169 talent globalization, 84 Tan, Chade-Meng, 314 Tanner, Chris, 450 Target Corp., 74–75, 498 task demands, 269 task identity, 360 task significance, 360 task structure, 389 Tata, 36, 83 Taylor, Frederick Winslow, 29, 50, 224, 450 team, structure of, 200–201, 200e, 339 team-building, 266 team effectiveness model, 334, 334e team leaders, 29 teams See also groups behavior on, 337–338 benefits of, 338, 339e coaching, 342–343 composition of, 335–336, 338–339 conflict in, 336–337 cross-functional, 188, 323, 332 cultural differences in, 339 effective, 333–337, 334e, 336e efficacy of, 336 global, 338–340, 339e groups vs., 331–332, 331e leadership in, 334–335, 397, 398e negative aspects of, 340 overview of, 322 problem-solving, 332 processes of, 340 rewards in, 338 roles in, 335–336, 336e self-managed, 332 sports, 345 virtual, 332, 333 work, 332–333 team structures, 200–201, 200e technical skills, 33 technology communication and, 425–430 control issues and, 458, 459 data analytics and, 94 data security, 45–46 decision making and, 121 electronic meetings and, 128 employee empowerment and, 398 environmental scanning and, 173 ethical issues related to, 94 explanation of, 63 flexible work arrangements and, 206–208 generational differences in use of, 101, 309 human resource management and, 233 impact on management, 37, 38, 54, 63 increased reliance on emotional intelligence and, 296 information, 54, 63, 121, 131–132, 161, 204 innovation and, 39, 272 investment in, 482–483 for office of tomorrow, 428 operations management and, 486–487 organizational change and, 37, 204, 261, 261e, 265 organizational design and, 196, 197, 197e rewards programs and, 369 robotic, 38 social media and, 39–40, 94, 429–430 strategic management and, 161, 165 sustainable management and, 40 team collaboration and, 333 telecommuting, 206–207 528 I n d ex teleconferences, 426 telling style, 391 Tesco, 204, 498 tests, 230 TGI Friday’s, 242 theft, employee, 460–461, 461e theory of justice view of ethics, 93 Theory X (McGregor), 51, 355 Theory Y (McGregor), 51, 355 thinking vs feeling (TF), 295 threats, 160 3M, 170, 274, 407, 490 three-needs theory (McClelland), 357 times interest earned ratio, 145e, 146 Title VII (Civil Rights Act of 1964), 97, 98, 243 Tod’s, 120 tolerance for ambiguity scale, 175–176 TOMS Shoes, 89 top managers See also managers explanation of, 28, 34 planning function of, 170, 170e, 171 total assets turnover ratio, 145e, 146 total quality management (TQM), 52 Toyota, 39, 157, 241 trade, trends in, 60 traditional goal setting, 166–167, 166e training attention, 314 employee, 233–235, 234e, 235e, 240 ethics, 96 trait theories of leadership, 386–387 transactional leadership, 395–396 transformational leadership, 395–396 transformation process, 476 transnational organizations, 84, 85 TrunkClub, 165 trust, 401–402, 402e Tumblr, 39 turnaround strategy, 163 turnover, employee, 290 20% time initiative, 274 Twitter, 39, 212, 225, 436–437 two-factor theory (Herzberg), 355–357, 356e type A personalities, 270 type B personalities, 270 U Uber, 60 Ulman, Doug, 178 uncertainty decision making and, 125 environmental, 64–65, 64e planning and, 155 resistance to organizational change and, 267 stability strategy and, 162 uncertainty avoidance, 87, 88, 129 unemployment rates See also employment global recession and, 64 trends in, 60 Unilever, 282 UniRush, 503 Unisys, 241 United States, economic trends in, 60 unit production, 197 unity of command, 50, 189–190 unity of direction, 50 Universal Music Group, 503 University of Iowa, 388 University of Michigan, 388 unstructured problems, 122 UPS (United PArcel Service), 113, 136–137 U.S Air Force, 297 U.S Anti-Doping Agency, 178 U.S Cellular, 438 U.S Internal Revenue Service, 459 U.S National Institute of Occupational Safety and Health, 462 U.S Office of Personnel Management, 445 U.S Postal Service, 34 utilitarian view of ethics, 93 V valence, 363 Valeo Klimasystemme GmbH, 489 validity, 229–230 value, 478 value chain, 479 value chain management (VCM) See also operations management benefits of, 480 explanation of, 478–480 goals of, 480 obstacles to, 485–486, 485e process of, 481 requirements for, 482–485, 482e Vandebroek, Sophie, 272 variable pay systems, 239 verbal intonation, 420 Verizon, 64, 337 vertical integration, 162 videoconference meetings, 426 Viking Range Corporation, 503 violence, workplace, 462–464, 463e virtual leadership, 400 virtual organizations, 202 virtual teams, 332, 333 virus hunters, 46 Visa, 141–142, 141e, 142e, 467 visionary leadership, 395–396 voice mail, 426, 438 Volkswagen, 241 Volvo, 331 Vroom, Victor, 392 W W L Gore, 331 W T Grant, 36 Wachovia, 331 “walk of shame,” 445 Wall Street Journal, 94 Walmart, 40, 92, 165, 177, 445, 483, 497, 498 Walt Disney Company, 27 Warby Parker, 179 Waze, 65 weaknesses, 160 wearable technology, 427, 428, 456, 459 Weber, Max, 50, 185 Wegmans Food Markets, 244 Welch, Jack, 202 Wellmark Blue Cross and Blue Shield, 490 wellness programs, 271 Wells Fargo & Company, 331 Wendy’s, 487 Western Electric Company, 51 Western Provident Association, 429 “white-water rapids” metaphor, 265 Whiting, Susan, 265 Whole Foods Market, 429 Wild Oats Markets, 429 Williams, Evan, 436 William Wrigley Jr Co., 430–431 Wilson, Dennis, 468–469 Wilson Sporting Goods, 185 Winegardner & Hammons, 70 Wing-ching, Shih, 409 Wipro Limited, 172 wireless communication, 427 Woodward, Joan, 197, 197e work See also workforce; workplace flexible arrangements for, 64, 206–208, 212, 368, 484 technological change and, 204 varying approaches to, 300 work councils, 225 work design, team effectiveness and, 336 workforce See also employees; work; workplace aging of, 97 change in composition of, 262 contingent, 100, 207–208 gender in, 98 workforce diversity age and, 97, 97e disabilities/abilities and, 98 explanation of, 96–97, 97e gender and, 98 GLBT sexual orientation and gender identity and, 99 management of, 242 motivation and, 367–368 programs to help adapt to, 99–101 race and ethnicity and, 98 religion and, 98 work groups, 323, 323e, 331–332, 331e See also groups work-life balance programs, 99–100 workplace approaches to discipline in, 465–466 control issues in, 459–460 dealing with negative behavior in, 309–310 generational differences in, 101, 308, 309e management of changing, 37–38 misbehavior in, 290 safe conditions in, 497–498 stress in, 271, 279–280 workplace violence, 462–464, 463e work specialization, 185–186, 186e work teams See also teams types of, 332–333 work groups vs., 331–332, 331e work unit orientation, 233 World Business Council for Sustainable Development, 40 World Economic Forum, 60 Worldwide Commercial and Consumer Equipment Division, 483 Wormald Security, 489 Wrangler, 497 written communication, 418–419 See also communication written reports, 449 Wyndham Peachtree Conference Center, 265 X Xerox, 201, 332 Xerox Innovation Group, 272 Y Yahoo!, 94, 96, 212 Yamaha Corporation of America, 244 Yamaji, Hiromi, 105 Yetton, Phillip, 392 YouTube, 76 Yum! Brands Inc., 370, 458 Z Zappos, 366 Zara, 497 zero inventory warehousing, 478 Zhongtian, Liu, 77 Zipcar, 60 Zippo Manufacturing, 65 ... And his cell phone kept track of the time in Atlanta, his home, where he headed on Thursday evenings For this new breed of professionals, life is a blend of home and office, work and leisure Thanks... responded by converting full-time permanent jobs into contingent jobs It’s predicted that by the end of the next decade the number of contingent employees will have grown to about 40 percent of the... Journal of Social Issues 49 (1993): 227–51; E A Ward, “Social Power Bases of Managers: Emergence of a New Factor,” Journal of Social Psychology (February 2001): 144–47; and B H Raven, “The Bases of
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