Ebook Management (6th edition): Part 2

(BQ) Part 2 book Management has contents: Organisational structure and design, managers and communication, human resource management, understanding individual behaviour, understanding groups and teams, motivating employees, leadership, foundations of control, managing operations.

4 www.downloadslide.com Organising part 10 Organisational structure and design 11 Managers and communication 12 Human resource management Organising is an important task of managers – one that is not always understood or appreciated However, when the organisation’s goals and plans are in place, the organising function sets in motion the process of seeing that those goals and plans are pursued When managers organise, they are defining what work needs to get done and creating a structure that enables those work activities to be completed efficiently and effectively In Part 4, we look at the management function of organising Chapter 10 introduces the concepts of organisational structure and organisational design Part of getting an organisation to function well is to make sure communication is flowing up and down the organisational structure, and managers play a crucial part in achieving this This is what we will look at in Chapter 11 Finally, the organising function involves finding people to fill the jobs that have been created In Chapter 12, we will therefore discuss the human resource management activities in which managers become involved Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 355 16/6/11 3:43:18 PM www.downloadslide.com Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 356 16/6/11 3:43:18 PM www.downloadslide.com Chapter 10 Organisational structure and design Learning outcomes Once managers are done planning, then what? This is when managers need to begin to ‘work the plan’ And the first step in doing that involves designing an appropriate organisational structure This chapter covers the decisions involved with designing this structure Focus on the following learning outcomes as you read and study this chapter: 10.1 Explain why organising is important 10.2 Describe six key elements in organisational design 10.3 Contrast mechanistic and organic structures 10.4 Identify the contingency factors that favour either the mechanistic model or the organic model of organisational design 10.5 Describe traditional organisational designs 10.6 Discuss contemporary organisational designs 10.7 Describe today’s organisational design challenges Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 357 16/6/11 3:43:18 PM www.downloadslide.com 358 W hen Bernie Brookes took on the job of CEO of Myer after the break-up of the Coles Myer Group in mid-2006, he knew he had a big task ahead of him to turn around the poorly performing department store chain The once successful retail business had consistently underperformed since the late 1990s in comparison to its closest competitor David Jones, and it became Bernie Brookes’ job to make the ‘My Store – My Myer’ catchphrase come alive again.1 The Myer business was founded by Sidney Myer, who arrived in Melbourne in 1899 as a penniless Russian immigrant and ended up creating one of the largest retail businesses in Australia The Myer retail brand continued to grow during the 20th century, becoming well-recognised by Australian households In 1983, Myer acquired Grace Bros Holdings Ltd, a department store chain based in New South Wales In 1985, Myer merged with G.J Coles & Co Ltd and became Coles Myer Ltd In 2004, Grace Bros stores were rebadged to Myer However, by that time the retail store chain was in deep trouble In June 2006, Myer was acquired from Coles Myer Ltd by a consortium comprising Newbridge Capital, Texas Pacific Group (TPG), Blum Capital and the Myer Family Company (the ‘consortium’) in a $1.4 billion transaction Eighty-three per cent of Myer was owned by TPG and associates, per cent by management, and per cent by the Myer Family Company According to Bernie Brookes, the new ownership structure was advantageous for Myer, for a couple of reasons First, it gave the new management team, as one of the three key ownership groups within the business, a lot of scope and authority to make major changes Second, because Myer was no longer a public company, management did not need to spend a lot of time and resources on external communication to shareholders and financial analysts Instead, it could focus on its internal communication with staff and on getting the job done in terms of turning the organisation around The new management team under the leadership of Bernie Brookes set out an ambitious ‘First 100 Days’ plan that was intended to be a bold start to a 50-month turnaround program of achieving the vision of becoming an ‘International Class Retail Business providing Inspiration to Everyone’ One of the first things that had to be changed was the culture, which needed to become more customer-focused To emphasise the change, head office was literally renamed as the ‘Support Centre’ This was a radical change from how the ‘old’ Myer had operated The ‘old’ Myer had become famous for multiple management layers and duplications What management wanted to achieve was to change the emphasis of the business from being ‘head office-centric’, or autocratic, to being much more ‘store-centric’, or autonomous Brookes had anticipated a hard slog getting staff and store managers on board with the change program after years of difficulties at the retailer, but he found them eager for change They found the ‘new Myer’ willing to listen to their ideas The objective of the new approach was to empower local management to drive store sales, improve customer loyalty and better support/ engage with the local communities Budgets Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 358 16/6/11 3:43:23 PM www.downloadslide.com 359 were established for each store to spend locally on community sponsorships and in-store events Store managers were given a say about what products they would stock, how they would market them, how they would manage their people, and so on Cross-functional teams, called ‘Red Teams’, were set up that identified 101 customer service improvement projects across the whole retail chain According to Brookes, the increased autonomy of store managers paid off in improved morale of management and staff Along with greater autonomy, Brookes also offered 1200 managers and staff across the business incentivised remuneration as part of a strategy to change the culture at Myer The departure from the Coles Group also meant that the ‘new’ Myer had to set up an independent organisational platform with its own human resources, IT and distribution functions By mid-2007, Myer had completed this transition to its own recruiting and training, as well as payroll and performance management, systems IT was largely outsourced to IBM However, the biggest restructure occurred in the distribution function Instead of having 34 small distribution centres, a new supply chain management system was put in place based on four large Australian distribution centres – Perth, Brisbane, Melbourne and Sydney – and four Asian hubs – in Shenzhen (China), Shanghai, Hong Kong and Singapore This system, in combination with a major restructuring of the buying section, was seen as a key means to improve the buying system, reduce costs, and create a clearer chain of command and accountability Basing the distribution around four warehouses across Australia meant that fashion goods would reach Myer stores 14–21 days faster, in a better and more store-ready condition, and at half the cost, than under the previous arrangements By 2009, after three years and an investment of more than $500 million in its supply chain, technology, brands and stores, Myer was back in a competitive position, generating healthy annual earnings before interest and tax of $236 million Having successfully achieved what the private equity owners had set out to – to revitalise the Myer chain – the company was refloated on the Australian Securities Exchange in November 2009 Having successfully managed the business transformation process during the 50 months’ turnaround phase (from the beginning of June 2006 to the end of July 2010), Bernie Brookes is now focusing on the next stage – the growth phase – beyond July 2010 To this effect, Myer has commenced an expansion program of having 80 stores by 2014 (from the original 60 when the transformation started in 2006), which would be more than double the proposed number of stores operated by its smaller competitor, David Jones Myer’s future goal is also to boost turnover from $3.3 billion in 2010 to $4 billion by 2015 When Bernie Brookes took on the role of CEO of Myer in 2006, he found management staff eager for change Their greater autonomy resulted in better management practice and healthier staff morale Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 359 16/6/11 3:43:34 PM www.downloadslide.com 360 part organising A lthough Bernie Brookes’s organisational changes under a private equity group at the ‘new’ Myer might not be right for others, this example illustrates how important it is for managers to design an organisational structure that helps to accomplish organisational goals and objectives In this chapter, we will present information about designing appropriate organisational structures We will look at the various elements of organisational structure and at contingency factors that influence the design We will look at some traditional and contemporary organisational designs Finally, we will describe the organisational design challenges facing managers – such as Bernie Brookes – today part 10.1 Learn in g out c ome Explain why organising is important organising Arranging and structuring work to accomplish the organisation’s goals Defining organisational structure and design No other topic in management has undergone as much change in the past few years as that of organising and organisational structure Traditional approaches to organising work are being questioned and re-evaluated as managers search out structural designs that will best support and facilitate employees doing the organisation’s work – designs that can achieve efficiency, such as in the case of Myer in our opening story, but that also have the flexibility that is necessary for success in today’s dynamic environment The basic concepts of organisation design formulated by early management writers such as Henri Fayol and Max Weber offered structural principles for managers to follow (Those principles are described in Chapter 1.) Over 80 years have passed since many of those principles were originally proposed Given that length of time and all the changes that have taken place, you would think that those principles would be pretty worthless today Surprisingly, they are not For the most part, they still provide valuable insights into designing effective and efficient organisations Of course, we have also gained a great deal of knowledge over the years as to their limitations In Chapter we defined organising as arranging and structuring work to accomplish the organisation’s goals It is a process through which managers design an organisation’s structure That process is important and serves many purposes (see Table 10.1) The challenge for managers is to design an organisational structure that allows employees to their work effectively and efficiently Table 10.1╇ Purposes of organising • Divides work to be done into specific jobs and departments • Assigns tasks and responsibilities associated with individual jobs • Coordinates diverse organisational tasks • Clusters jobs into units • Establishes relationships between individuals, groups and departments • Establishes formal lines of authority • Allocates and deploys organisational resources organisational structure The formal arrangement of jobs within an organisation organisational design Developing and changing an organisation’s structure Just what is organisational structure? It is the formal arrangement of jobs within an organisation Just as humans have skeletons that define their shape, so organisations have structures that define theirs When managers develop or change an organisation’s structure they are engaged in organisational design, a process that involves decisions about six key elements: work specialisation, departmentalisation, chain of command, span of control, centralisation and decentralisation, and formalisation.2 Let us take a closer look at each of these elements of structure Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 360 16/6/11 3:43:35 PM www.downloadslide.com Work specialisation Remember the discussion of Adam Smith in Chapter 2, who first identified division of labour and concluded that it contributed to increased employee productivity? Early in the 20th century, Henry Ford applied this concept in an automobile assembly line where every Ford worker was assigned a specific, repetitive task One person would put on the right front wheel, someone else would install the right front door, and another worker would put in the bench seat By breaking jobs up into small, standardised tasks that could be performed over and over again, Ford was able to produce cars at the rate of one every ten seconds, using employees with relatively limited skills Today, we use the term work specialisation to describe the degree to which tasks in an organisation are divided into separate jobs The essence of work specialisation is that an entire job is not done by one individual but instead is broken down into steps, and each step is completed by a different person Individual employees ‘specialise’ in doing part of an activity, rather than the entire activity, and that is why it is also known as division of labour Work specialisation makes efficient use of the diversity of skills that workers have In most organisations, some tasks require highly developed skills; others can be performed by employees with lower skill levels This concept explains why you rarely find a cardiac surgeon closing up a patient after surgery Instead, doctors doing their residencies in open-heart surgery and learning the skill usually stitch and staple the patient after the surgeon has finished the surgery Early proponents of work specialisation believed that it could lead to great increases in productivity At the beginning of the 20th century, that generalisation was reasonable Because specialisation was not widely practised, its introduction almost always generated higher productivity But, it can also result in monotonous and repetitive jobs At some point, the human diseconomies from division of labour – boredom, fatigue, stress, low productivity, poor quality, increased absenteeism and high turnover – exceed the economic advantages.3 chapter 10 361 10.2 L ea r n in g o u t co m e Describe six key elements in organisational design 10 work specialisation chapter organisational structure and design Dividing work activities into separate job tasks Today’s view Most managers today continue to see work specialisation as an important organising mechanism because they recognise the economies it provides in certain types of jobs, but they also understand the problems it creates when it is carried to extremes McDonald’s, for example, uses high work specialisation to make and sell its fast-food products efficiently One person takes orders, others cook and assemble the hamburgers, another works the fryer, another gets the drinks, another bags orders, and so forth Such single-minded focus on maximising efficiency has contributed to increasing productivity In fact, at many McDonald’s, you will see a clock that times how long it takes employees to fill the order; look closer and you will probably see posted somewhere an order fulfilment time goal At some point, however, work specialisation no longer leads to productivity That is why other companies such as Ford Australia, Hallmark and Bendix Mintex use minimal work specialisation and instead give employees a broad range of tasks to Departmentalisation Does your university or college have an office of student services? Does it have an educational media department? If you are employed, does your organisation have a centralised marketing department or regional sales divisions? After deciding what job tasks will be done by whom, common job activities need to be grouped back together so that the work can be done in a coordinated and integrated way How jobs are grouped together is called departmentalisation Every organisation will have its own specific way of classifying and grouping work activities Figure 10.1 shows the five common forms of departmentalisation Functional departmentalisation groups jobs by functions performed This approach can be used in all types of organisations, although the functions change to reflect the organisation’s objectives and work activities Product departmentalisation groups jobs by product line departmentalisation The basis by which jobs are grouped together functional departmentalisation Grouping jobs by functions performed product departmentalisation Grouping jobs by product line Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 361 16/6/11 3:43:35 PM www.downloadslide.com 362 part organising Figure 10.1╇ The five common forms of departmentalisation Functional departmentalisation Plant Manager part Manager, Engineering Manager, Accounting Manager, Manufacturing – – + Efficiencies from putting together similar specialities and people with common skills, knowledge and orientations + Coordination within functional area + In-depth specialisation Geographic departmentalisation Sales Manager, Sales Western Australia/NT Manager, Human Resources Poor communication across functional areas Limited view of organisational goals Sales Manager Sales Manager, Sales Queensland Sales Manager, Sales NSW/ACT + Effective and efficient handling of specific regional issues + Serves needs of unique geographic markets Product departmentalisation – – Sales Manager, Sales Victoria/Tasmania Chief Executive Officer Car and Sport-Utility Vehicle (SUV) Division Manager Manager, Truck Manufacturing Manager, SUV Manufacturing Plant + Allows specialisation in particular products and services + Managers can become experts in their industries + Closer to customers Process departmentalisation Sawing Department Manager Sales Manager, Sales South Australia Duplication of functions Can feel isolated from other organisational areas Heavy Vehicle Division Manager Manager, Bus Manufacturing Manager, Purchasing – – Manager, Car Manufacturing Plant Duplication of function Limited view of organisational goals Plant Superintendent Planing and Milling Department Manager Lacquering and Sanding Department Manager Assembling Department Manager – + More efficient flow of work activities Customer departmentalisation Finishing Department Manager Inspection and Shipping Department Manager Can only be used with certain types of products Director of Sales Manager, Retail Accounts Manager, Wholesale Accounts + Customers’ needs and problems can be met by specialists – – Manager, Government Accounts Duplication of functions Limited view of organisational goals Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 362 16/6/11 3:43:36 PM www.downloadslide.com In this approach, each main product area is placed under the authority of a manager who is responsible for everything having to with that product line Geographic departmentalisation groups jobs on the basis of territory or geography, perhaps the Asia-Pacific, European and North American regions Each of these regions is, in effect, a department organised around geography If an organisation’s customers are scattered over a large geographic area, this form of departmentalisation can be valuable Process departmentalisation groups jobs on the basis of product or customer flow In this approach, work activities follow a natural processing flow of products or even of customers For example, at a wood cabinet manufacturing plant in southern New South Wales, production is organised around six departments: sawing, planing and milling, assembling, lacquering and sanding, finishing, and inspection and shipping Finally, customer departmentalisation groups jobs on the basis of customers who have common needs or problems that can best be met by having specialists for each group For example, a large law office might segment its staff on the basis of whether they serve corporate or individual clients Today’s view Most large organisations continue to use combinations of most or all of these types of departmentalisation For example, Black & Decker organises its divisions along functional lines, its manufacturing units around processes, its sales around geographic regions, and its sales regions around customer groupings One popular departmentalisation trend is the increasing use of customer departmentalisaÂ� tion Because getting and keeping customers is essential for success, this approach works well because it emphasises monitoring and responding to changes in customers’ needs Another popular trend is the use of teams, especially as work tasks have become more complex and diverse skills are needed to accomplish those tasks One specific type of team that more organisations are using is a cross-functional team, which is a work team composed of individuals from various functional specialties For instance, at Ford’s material planning and logistics division, a cross-functional team with employees from the company’s finance, purchasing, engineering and quality control areas, and with representatives from the company’s outside logistics suppliers, has made several work improvement ideas.4 And if you remember from the Myer example at the beginning of the chapter, Myer used cross-functional teams to identify 101 projects across the chain where teams are now working to try and improve customer service The use of cross-functional teams is discussed more fully in Chapter 14 Explain why organising is important Identify the six key elements used in designing an organisation’s structure chapter 10 363 geographic departmentalisation Grouping jobs on the basis of geographical region process departmentalisation Grouping jobs on the basis of product or customer flow customer departmentalisation 10 chapter organisational structure and design Grouping jobs on the basis of specific and unique customers who have common needs cross-functional teams Work teams composed of individuals from various functional specialities review questions Discuss the traditional and contemporary views of work specialisation Describe each of the five forms of departmentalisation Chain of command Suppose you were at work and had a problem with some issue that came up What would you do? Who would you go to, to help you resolve that issue? People need to know who their boss is That is what the chain of command is all about The chain of command is the line of authority that extends from the upper organisational levels to the lowest levels, which clarifies who reports to whom Managers need to consider the chain of command when organising work, because it helps employees with questions such as ‘Who I report to?’ or ‘Who I go to if I have a problem?’ To understand the chain of command, you have to understand three other important concepts: authority, responsibility and unity of command Authority refers to the rights inherent chain of command The line of authority extending from upper organisational levels to the lowest levels, which clarifies who reports to whom authority The rights inherent in a managerial position to tell people what to and to expect them to it Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 363 16/6/11 3:43:36 PM www.downloadslide.com 364 part responsibility part The obligation to perform any assigned duties unity of command The management principle that each person should report to only one manager organising in a managerial position to tell people what to and to expect them to it.5 An organisation’s managers, who are in the chain of command, are granted a certain degree of authority to their job of coordinating and overseeing the work of other people As managers assign work to employees, those employees assume an obligation to perform any assigned duties This obligation or expectation to perform is known as responsibility Finally, the unity of command principle (one of Fayol’s 14 principles of management) helps to preserve the concept of a continuous line of authority It states that a person should report to one manager only Without unity of command, conflicting demands and priorities from multiple bosses can create problems Today’s view Although early management theorists (Fayol, Weber, Taylor and others) believed that chain of command, authority, responsibility and unity of command were essential, times have changed.6 These concepts are considerably less relevant today because of information technology and employee empowerment For example, at the Michelin plant in Tours, France, managers have replaced the top-down chain of command with ‘birdhouse’ meetings, in which employees meet for five minutes at regular intervals throughout the day at a column on the shop floor and study simple tables and charts to identify production bottlenecks Instead of being bosses, shop managers are enablers.7 Information technology has made it possible for employees to access information in a matter of a few seconds that used to be available only to managers It means that employees can communicate with anyone else in the organisation without going through the formal chain of command Also, many employees, especially in organisations where work revolves around projects, find themselves reporting to more than one boss, thus violating the unity of command principle However, such arrangements can and work if communication, conflict and other issues are managed well by all involved parties Of course, many organisations still find that they are most productive by enforcing the chain of command, but their numbers are dwindling Span of control Organisational level How many employees can a manager efficiently and effectively manage? The traditional view was that managers could not – and should not – directly supervise more than five or six subordinates span of control This question of span of control is important because, to a large degree, it determines the The number of employees number of levels and managers an organisation has Other things being equal, the wider or a manager can efficiently larger the span of control, the more efficient an organisation is An example will show you why and effectively manage Assume that we have two large organisations, and each has approximately 4100 employees As Figure 10.2 shows, if one organisation has a uniform span of four and the other a span of eight, the wider span will have two fewer levels and approximately 800 fewer managers If Figure 10.2╇ Contrasting spans of control the average manager made $80â•›000 a year, the organisation with the wider span would Members at each level save over $64 million a year in management (Highest) Assuming span of Assuming span of salaries alone! Obviously, wider spans are 1 more efficient in terms of cost However, at some point, wider spans may reduce 16 64 effectiveness if employee performance 64 512 worsens because managers no longer have 256 4096 the time to lead effectively (Lowest) 1024 4096 Span of 4: Employees Managers (level 1–6) Today’s view = 4096 = 1365 Span of 8: Employees Managers (level 1–4) = 4096 = 585 The contemporary view of span of control recognises that there is no magic number Many factors influence the number of Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 364 16/6/11 3:43:37 PM www.downloadslide.com 742 INDEX Hewlett-Packard╇ (continued) cultural problem 146 joint ventures 141 mentor program for women 583 off-shoring 448 social responsiveness 177 span of control 365 hierarchy of needs theory 559–60, 560, 564, 579 high-high leaders 606 high-involvement work practices 572 high-performance work practices 426–7 highly reliable organisations (HROs) 281, 283 HIH Insurance 27, 61, 180, 624, 679 HJ Heinz 139 Ho, Tony 565 Ho Kwong Ping 573 Hoffman, Toni 193, 195 Hofstede, Geert 147–8, 151, 282 Holden Barina 140 Holland, Guyon 661 Holland, John, personality–job fit theory 492–3 honesty 111, 623 Honeywell Pacific 367 horizontal integration 333–4 Hou, Stella 565 House, Robert 614 Hu, Stern 61 Human Capital Index 426 human relations movement 54 human relations view of conflict 533 human resource management (HRM) 426–7 awards 424 career development 446–7, 452 compensation/benefits 446, 447 decruitment 435, 436 downsizing 231–2, 436, 449–50, 626 HR inventory 433–4 mentoring 444, 448, 452, 583 orientation 441–2 recruitment see recruitment selection process see selection devices; selection process sexual harassment 452, 454–6, 454 staff retention 444–9, 452, 565 and sustainability 427–8 training see training in value chain 702 work–life balance see work–life balance human resource management process 428, 429 demographic trends 433 economy’s effect on 428–9 industrial relations 430 labour unions 429–30 relevant legislation 430–3 human resource planning 433–4 human skills 17 see also interpersonal communication humane orientation 149, 150 Hussein, Saddam 106, 203 hygiene factors 562 Hyundai 339 culture 100 planning 308 Hyundai Heavy Industries 708 I IAG 179 IBM 128, 365 ethical culture 183 inclusive culture 622 innovation 239 IT use 411 off-shoring 448 office/desk sharing 379 relocation strategy 132 restructure 139 Icelandic Volcano 1; Global Commerce (case) 316–18 idea champions 241 idea generation 406 IDEO, innovation 107 IGA supermarkets 324 iGen 63, 91 IKEA 89, 343 cost-conscious 103, 340 decision making 281 network structure 7, 378 in Russia 145 vision 617 Ilhan, John 491 image change, McDonald’s 87 IMF 137–8 immediate corrective action 655 immediate gratification bias 278, 278 Immelt, Jeffrey 174 importing 140 impression management 489 improvement, continual 51 in-group collectivism 149, 150 Inc 661 inclusion, in workforce 450–2, 453–4, 498, 583 managers’ role in promoting 621–2 Increasing Profits Without Hurting People (Berry) 659 India 153, 309, 565, 573 call centres 60, 448–9 English speakers 129 IT workers’ health 448–9 service industry 24 Taco Bell 131 young population 91 Inditex 341 individualism 147, 148, 149, 150 and communication style 401–2 and motivation 579 social loafing 543 Indonesia 330 creating an ethical culture 106–7 paid maternity leave 456 induction 441–2, 587 industrial relations 430 Industrial Revolution 45, 221 industrialisation 176 industry rankings 660–1 IndustryWeek 661 Infigen Energy, wind farms 227–8 inflation rates 146 informal communication 405 informal groups 520 information 667 and communication 396 confidential 413 distorting 400 and power 67 sharing 703 information controls 667–8 information overload 401 information technology (IT) 65, 221, 364 effect on firms 412 and managerial communication 411 networked systems 411 and value chain management 700 wireless capabilities 411–12 informational roles 15, 16 Infosys, motivating staff 565 initiating structure 606, 608 innovation 23, 24–5, 183, 238 at 3M 102 by Philips team 537 culture of trust 108 stimulating 107, 238–41, 565 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 742 17/6/11 11:24:22 AM www.downloadslide.com 743 INDEX sustainability-driven 242–6, 243 system view 239 innovation strategies 345 environmentally sustainable 346–7 Innovista 240 inspiration 565, 630 instant messaging 672 instinct, trusting 281, 283 Insurance Australia Group 25 integration horizontal 333–4 vertical 333 integrity 623 Intel energy conservation 154 seeding 692 intellectual property 672, 703 intelligence gathering 310–11 interactionist view of conflict 533 intergroup development 221 International Monetary Fund (IMF) 137–8, 151 international organisations 139–44 internet e-business 343 growth 65 interpersonal communication 394 barriers to 399–403 overcoming 402–4 body language 398 methods 397–9 comparison of 399 evaluating 398 process 396–7, 397 in teams 539 training 443 verbal intonation 398 interpersonal roles 15 interviews (job) 437, 438, 439, 440, 441 intranets 343, 379 introversion 486 intuition 271 intuitive decision making 271 inventory tracking 715–16 involvement, employee 111, 237, 534, 572 iPad tablet 107 Ireland 428, 454 iron ore 85 Isa, Pablo 341 Islamic finance 666 ISO (International Organization for Standardization) 178, 710 ISO 9000 710 ISO 14000 178 isolation, at work 586 issue intensity 185–6 Italy, migrant workforce 63 It’s a Jungle Out There (case) 548–9 J Jackson, Margaret 269, 679 James Hardie Industries 128, 144 asbestos claims 166–8, 170, 627 executive remuneration 627 Japan 63, 454, 542, 588, 675 communication style 401–2 long-term orientation 148 loss of job security 428 manufacturing productivity 693–4, 695 motivation 579, 580 quality programs 51, 52 seafood imports 662 service industry 24, 693 status 543 sustainable firms 179 union membership 429 women in workforce 63 jargon 103, 401 Jetstar 86, 88, 212, 322–3, 337, 435 Jimmy Possum Furniture 326–7 job analysis 434 job boredom 234, 236, 587 job characteristics model (JCM) 570–2, 571, 577, 584 job depth 570 job descriptions 182, 434 Lonely Planet 523 job design 568, 584, 702 see also work design job enlargement 568, 570, 571 job enrichment 570, 572 job involvement 476, 480 job loss 231–2, 428–9 job redesign 236, 571, 573, 584 job rotation 444 job satisfaction 440–1, 475, 476–9, 567 job scope 568 job sharing 93, 456, 457, 581 job specialisation 45, 568 job specifications 434 Jobs, Steve 395, 617 JobsLive 498 joint ventures 141, 142, 333 Jollibee Foods Corporation (JFC) 334 Jones, Russell 194 Jones Middleton Accountants 572 Jopling, Peter 624 Josephson, Michael 195 Joyce, Alan 212–13, 214 judgements, of others 496 Juran, Joseph M 51 Just Jeans 343 justice distributive 574–5 procedural 574–5 K Kamprad, Ingvar 100, 103, 617 karoshi 234–5 Karpin Report (1995) 126 Kaufmann, Per 145 Kelly, Gail 179, 180, 324, 602–4, 605, 622, 628, 633 Kelly, Moira 4–5, 6, 8, 30 Kennedy, John F 67 Kerviel, Jerome 650 Kids Help Line 173 Kindy, Phil 308 King, Wal 30, 106–7 Kloppers, Marius 30, 84, 85, 174 knowledge enlargment activities 570 knowledge management 66, 414 job design 572 Kodak 334–5 Kodak Australasia (case) 249–51 Korean Air, culture change 228 KPMG, workplace design 410 Kraemer, Harvey 627 Kraft Foods 330, 523, 536, 699 Kroc, Ray 87 Kyoto Protocol 154, 245, 246 L labour–management relations 430 labour market force for change 215 low-cost labour 60, 92, 140, 671 skills shortages 498–9, 583 laissez-faire style of leading 606, 608 Lamy, Pascal 136 language as barrier 401, 403 political correctness 405 training in English 453 and understanding culture 129 of workplace 103 language skills 129–30 Languages Other Than English (LOTE) program 129 lateral communication 406–7 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 743 17/6/11 11:24:23 AM www.downloadslide.com 744 INDEX leader–member exchange theory 615–16 leader–member relations 611 leader role 15, 16, 21 leaders 604 achievement-oriented 614 autocratic 606, 608 charismatic 616–17, 625 consideration 606, 608 cynical view of 626 democratic 606, 608 directive 614 effective 629–33, 632 employee-oriented 606–8, 607, 608 high-high 606 participative 614, 636–7 and power 620–2 production-oriented 606–8, 607 supportive 614 task-oriented 608, 611, 612 transactional 616, 627, 631 transformational 616, 625, 627–9, 631 leadership 604 basic principles 627 behavioural theories 605–9, 607 case study 636–7 celebrities, demise of 626–7 change leaders 237 and compassion 609 cross-cultural 619–31 developing trust 623–4 ethical 193, 624–5 Fiedler contingency model 610–12, 611 gender differences 631–3, 632 initiating structure 606, 608 leader–member exchange theory 615–16 managerial grid 607, 607–8 and national culture 151 path–goal theory 613–15 proactives 490 Situational Leadership Model 612–13 styles 606–8, 629–30, 631–3 substitutes for 633 of teams 540, 541, 619–20 training for 629, 630 trait theories 604–5 transactional 616, 627, 631 transformational 616, 625, 627–9, 631 and value chain management 701–2, 705 visionary 617 vs management 610, 630 see also leading leading 13, 14 decisions 268 effect of culture on 105 time spent, by organisation level 19 Leahy, Sir Terry 74 lean organisations 712 learning 497 managerial role models 500 operant conditioning 497, 499 reinforcement 497, 499, 500 shaping behaviour 499–500, 501 social learning theory 499 learning organisations 66, 375, 381, 381–2 Learning to Love Globalisation at ‘German’ SAP (case) 158–9 least preferred co-worker (LPC) questionnaire 610–11 Lebovits, Neil 558 Lee Kun-hee 64–5 legislation business 89, 90, 214 HRM-relevant 430–3 legitimate power 620 Lego Group 60 Lehman Brothers 180, 184, 192 culture 103–4 Leighton Group, in Indonesia 106–7 Lend Lease 128, 140, 142, 198, 520 code of conduct 189 family friendly 456 share ownership 588 workplace design 410 leverage ratios 663, 664 Lewin, Kurt 216, 224 liaison role 15, 16 licensing 141 lifestyle preferences 63, 89, 111 lighting, in supermarkets 74 ‘lights-out’ manufacturing 693 Lindberg, Andrew 187, 188, 203 linear thinking style 277 Lion Nathan, teams 375, 520 liquidity ratios 663, 664 Liquorland 89 listening skills 403–4 Lockheed Martin, ethics training 191 locus of control 182, 488, 490, 493 Lonely Planet job descriptions online 523 team structure 518–19, 523, 537, 541 long-term plans 300, 306 Longstaff, Simon 61 Löscher, Peter 190 Loughridge, Ken 545 low-cost leaders 339, 340 Lowy, Frank 30 M Macdonald, Peter 167, 168 Machiavellianism (Mach) 488 MacNeill, Neil 662–3 Madlener, Franz 140 Madoff, Bernard 180 maintenance-related roles 525, 526 Malaysia 330, 401–2, 564 leadership style 631 paid maternity leave 456 welfare of workers 432 management 12 historical background 44–6 omnipotent view of 82–3 poor 13, 27 productivity of 694, 695 reasons for study 27–30 symbolic view of 82, 83 universality of 18, 19–22, 27–8, 28 values-based 183 vs leadership 610, 630 management by objectives (MBO) 302–3, 445 management by walking around 406, 662–3 management concepts, cross-national transferability 21–2 management functions 13–14, 16–17 distribution of time, by organisation level 19 management information system (MIS) 667 management roles 14–17 importance in small/large firms 21 management science 50 management skills 17–18 conceptual 17 human skills 17 technical 17 management theories 46 contingency approach 58–9 general administrative theory 48–50 organisational behaviour (OB) 52–4, 53 quantitative approach 50–2 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 744 17/6/11 11:24:24 AM www.downloadslide.com INDEX scientific management 46–8 systems approach 56–7 managerial communication see communication managerial ethics 168, 178, 180–6, 198 managerial grid 607, 607–8 managers 10 challenges 29–30 changes in job 23–6 and culture 104–5 as decision makers 267–8, 269 held hostage 92 importance of 6, 8, 82 parameters of discretion 83–4 rewards 29–30 as role models 183, 190, 500 self-serving 101 successful 22 see also executives; first-line managers; middle managers; top managers Managing McDonald’s Australia (case) 34–6 manufacturing 693–5 flexible 711 manufacturing organisations 693 Manville Corporation 169 Maori people 452, 498, 622 Mark, Reuben 193 market value added (MVA) 665 marketplace force for change 214 threat of new entrants 339 Marriott International, job redesign 584 Mars rovers 241 Marshall, George 482 Mary Kay Cosmetics, awards ceremony 102 Maslow, Abraham 54 needs hierarchy 559–60, 560, 561, 564, 579 mass customisation 711 mass production 371 MasterChef 325 material symbols 102–3 materialism 147 maternity leave, paid 456 matrix structure 375, 376, 376 Mattel, creativity 239–40 Matthews, Karen 609–10 mature-age employees 63, 453–4 maximax choices 275–6 maximin choices 275, 276 Mayo, Elton 54 McCall, Charles W 625 McClelland, David 54 three-needs theory 562–3, 563, 564 McDonald’s in China 138 e-People strategy 706 employee satisfaction 479 feedforward control 662 global 59 image change 87 improved operations 694 McCafé 351 pressure for beef standards 88 reacting to change 24 work specialisation 361 McDonald’s Australia, innovation 24 McGregor, Douglas 54, 560–1, 564 McInnes, Mark 455 McLeod, Ian McNerney, Jim 630 meaning, in work 111, 112 means–ends chain 302 mechanistic organisations 368–9, 371, 382 Medibank Private, HR inventory 434 Meehan, Bart 274 Melbourne, University of 274, 295, 296 mentoring 444, 448, 452, 583 Mercedes-Benz 173 Merchant, Gordon 124–5 Mercosur 135, 136 Meredith, Paul 274 mergers 334 Merinomark, supply chain quality 707 Merrill Lynch 139, 454, 626 message 396, 397 Mexico 146, 186, 454, 543, 579, 709 union membership 429 Michelin 336, 364 micro-credit 244 Microsoft 91, 128, 324, 426, 451 aggressiveness 97–8 innovation 239 jargon 103 off-shoring 448 vision 617 Vista 374 middle managers 10–11 competitive strategies 332, 333 skills needed 17 time spent per function 19 milk bottle production 538 Milne, Stuart 498 745 minimax choices 275, 276–7 Minter Ellison 138 Mintzberg, Henry 14–17 misbehaviour, in workplace 475, 479 mission 304–5, 327, 328 Mitsubishi 214 information gathering 310 Mitsubishi Australia 232 modular organisation 377–8 Monash University 274, 295, 343 money and job satisfaction 477 as motivator 584, 586, 588, 590 monitor role 15, 16, 18, 21 Monsanto, use of social media 412 moral development, stages 181–2, 188 morale 558 Moran Furniture, disabled workers 451 Morgan, David 179, 602, 603, 628 Morita, Akio 100 Morita, Yasutaka 661 motivation 558–9, 618 awards ceremony 102 and communication 396 contemporary theories 564, 566–78 integrating 576–7 content theories 564 contingent workers 582, 584 cross-cultural 578–80 in diverse workforce 580–2 early theories 559–64 and empowerment 572, 573 equity theory 564, 573–5, 574 and ethics 578 expectancy theory 564, 575, 575–7 goal-setting theory 564, 566–7, 568, 589 guidelines 589–90 hierarchy of needs theory (Maslow) 559–60, 560 job design theory 568, 570–2 to lead 629 minimum-wage employees 584 process theories 564 professionals 582 reinforcement theory 567–8 and sustainability 427–8 Theory X & Theory Y (McGregor) 560–1 three-needs theory (McClelland) 562–3, 563 two-factor theory (Herzberg) 561, 561–2, 562 see also money; rewards Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 745 17/6/11 11:24:24 AM www.downloadslide.com 746 INDEX motivation–hygiene theory 561, 561–2, 562, 564 motivators 562 Motorola 141, 710 Mouton, Jane 607–8 Mulally, Alan 57–8 Mullen, Jim 370 multi-person comparisons 445 multi-tiered pricing 245 multidomestic corporations 139, 141 multilingualism 129–30 multinational corporations (MNCs) 127, 139 multitasking 503 Munsterberg, Hugo 52, 53 Murata Manufacturing 661 Murdoch, Rupert 617 Murray, David 608 Murray–Darling basin 295 Murthy, NR Narayana 565, 573 music industry 93–4, 341 Myer 94, 324 turnaround strategy 358–9, 363, 366 Myer Family 197 Myers-Briggs Type Indicator 486–7 MySpace 65 N NAFTA 135 Nano mini-car 24, 43 Nasser, Jacques 43 National Asian Languages and Studies in Schools Program (NALSSP) 129 National Australia Bank 25, 128, 142, 665 bump spaces 411 Equator Principles 245 rogue trading 650, 663 Volunteer Program 198 National Broadband Network 80, 81, 91, 215 national culture 146–7 and communication 401–3 and global teams 542–5 GLOBE framework 148–9, 150 and goal setting 567 Hofstede’s five dimensions 147–8 and leadership 151, 629–31 masculine (achievement) 579–80 and motivation 578–80 nurturing (feminine) 579, 580 personality types 490 and talent retention 564–5 values 63 see also collectivism; individualism national customs 131–2, 146 National Heart Foundation, mission 327 National Privacy Principles 671 Nayar, Vineet 508 need for achievement (nAch) 562, 577, 579 need for affiliation (nAff) 562 need for power (nPow) 562 needs Maslow’s hierarchy 559–60, 560, 564, 579 social 559 negotiating skills, in teams 540 negotiators 15, 16, 18, 21 Nestlé 91, 128 multidomestic 139 value chain management 700–1 NetApp, best employer 108 network organisation 377–8 networked IT systems 411 Neukirchen, Karl-Josef 561 New Industrial Revolution 68 New South Wales Fire Brigade 472–3 New Zealand 579 bilateral free trade agreements 133–4 business legislation 90 emissions trading 154 export location 143 HRM-relevant legislation 431 paid maternity leave 456 political system 89 service industry 60 small business 21 sustainability 245–6 unemployment level 583 value chain management 700 world orientation 126 News Corporation executive pay 30 global reach 128, 144 vision 617 Ngarda Civil & Mining 196–7 niching 340, 344 Nichols Foods, recognition program 585–6 Nike 88, 337 goal 297 innovation 106 network structure 378 stories 102 Nissan 214 Nissan Casting 709 Nixon, Kim 108 Noble, Catriona 34–5, 87 noise 396 Nokia 135, 379, 710 culture change 230–1 low-income phones 242 need for change 218–19 nominal group technique 533 Nomura Holdings, blending cultures 103–4 non-employees 380 non-linear thinking style 277 non-managerial employees 10 non-programmed decisions 273 non-verbal communication 398–9, 404 body language 398, 402, 452 eye contact 402, 452 intercultural 402–3 Nooyi, Indra 310 Nordstrom 106 norming 521 norms 526 pressure to conform 528 Norris, Ralph 30, 626 North America Free Trade Agreement (NAFTA) 135 North Korea 145 Norway 579 Norwich Union 413 not-for-profit organisations 20 competitors 88 entrepreneurship 65 Novozymes 380–1 sustainability development centre 381 NRMA 66 Nuffield Inquiry 129 O objectives see goals occupational health and safety (OHS) 457–9 construction industry 652 employer liability 432 fines for breach 432 hazardous environments 675 legislation 431, 432 top management commitment 458–9 O’Donnell, David 451 OECD see Organisation for Economic Co-operation and Development Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 746 17/6/11 11:24:25 AM www.downloadslide.com INDEX office attire 104, 502 dress norms 526 office design, and communication 410 office rage 674–5 off-shoring, of IT work 448–9 Ohio State leadership studies 606 oil industry 69, 244, 371 effective culture 104 spills 648–9 tanker safety 176–7 world’s largest company 127 Olympic Park, London 690–1 omnipotent view of management 82–3 on-the-job training 444 O’Neil, Stanley 626 OneTel 27, 679 online marketing 88 online recruiting 435 open-book management (OBM) 585, 660 open systems 56, 57 openness 111 operant conditioning 497, 499 operational plans 300, 305 operations management 692, 692–3 integrating people 694, 695 managing productivity 693–4 mass customisation 711 new methods 220 quality initiatives 706–10 role of technology 705–6 strategic role 694–5 see also value chain management operations research 50 opportunities 329, 331 Opportunity International 196 Optus 173 organic organisation 238, 369, 375 Organisation for Economic Cooperation and Development (OECD) 138, 186 Anti-Bribery Convention 186, 187 Guidelines for Multinational Enterprises 186–7 organisational areas 19–20 organisational behaviour (OB) 52–4, 53, 474 bullying 503–4 goals 474–5 important employee behaviours 475 managing Gen Ys 501–3, 502 see also behaviour organisational change 219 resistance to 223–8 successful 236–7 types of 219–22, 220 see also change organisational citizenship behaviour (OCB) 475 and job satisfaction 479 organisational commitment 476, 480, 534, 540 organisational communication 394, 405–10 direction of flow 406–7 effective 409 formal 405 grapevine 409 informal 405 legal issues 413 networks 407 and office design 410 security concerns 413 organisational culture 97–8 blending diverse cultures 103–4 changing 228–31 contrasting 99 customer-responsive 109, 345 dimensions 97, 98 effects on managers 104–5 embracing sustainability 109–10 encouraging diversity 622 and ethical behaviour 106–7, 183, 184 innovative 25, 107, 240–1 ‘learning’ by employees 101–3 maintaining 100–1 positive 393 source of 100, 101 and spirituality 110–12 and strategy 331 strong cultures 98–100, 183, 228, 229, 331, 557 at Telstra 80–1, 82 and upward communication 406 and value chain 702, 703 of violence 675 weak cultures 98–9 organisational design 360 centralisation 366–7 chain of command 363–4 contemporary 374–8 decentralisation 366–7 departmentalisation 361–3, 362 formalisation 367 keeping employees connected 379–80 747 span of control 364, 364–6 and sustainability 380–1 traditional 372–4 work specialisation 361 organisational development (OD) 221–2, 222 organisational effectiveness 660–1 organisational levels 10 distribution of time per function 19 skills needed at each level 17 type of planning 305 organisational performance 657 asset management 658 benchmarking 668 financial controls 663–5 balanced scorecard 665–6 economic value added 664–5 market value added 665 ratios 663–4 importance of measuring 658–9 information controls 667–8 measurement tools 661–2 concurrent control 662–3 feedback control 662, 663 feedforward control 662 management by walking around 406, 662–3 measures of 659–60 effectiveness 660–1 productivity 660 organisational processes 700 organisational strategy and change 215 and structure 370 organisational structure 6, 7, 360 boundaryless 375, 377, 379 changing 219, 220, 220 divisional 374 and environmental uncertainty 371–2 and ethical behaviour 182 functional 372–4 global issues 382–3 matrix 375, 376, 376 mechanistic 368–9, 382 network 377–8 organic 238, 369, 375 project structure 375, 376–7 simple structure 372, 374 size and 370 strategy and 370 team structure 375–6 technology and 371 virtual 377, 380 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 747 17/6/11 11:24:26 AM www.downloadslide.com 748 INDEX organisations 6–7, 45 boundaryless 375, 377, 379 change-capable 237 changing nature of characteristics contemporary and the environment 96 global 139, 141, 144, 694 highly reliable 281, 283 as icebergs 473 international 139–40 internationalising 140–4, 141 lean 712 learning 66, 375, 381, 381–2 manufacturing 693 mechanistic 368–9, 371, 382 network 377–8 not-for-profit 20 open systems 56, 57 organic 238, 369 people-oriented 426 public service 13 purpose reality of work 28 regulation of 89 reputation 659 service 693 size 20–1 stakeholders 95–6, 96 threats/pressures 44 traditional 7, 66 transnational 139 types of 20 unspoken values 104–5 virtual 377, 380 well managed 27 see also companies organising 13, 14, 360 decisions 268 effect of culture on 105 purposes 360 teams 541 time spent, by organisation level 19 orientation 441–2, 587 in diverse workforce 451–2 Origin Energy 173 Orth, Robert 622 Our Common Future 67 Out of Control (case) 116–17 outsourcing 60, 140, 697 overconfidence bias 278, 278 Owen, Robert 52, 53 ownership, of firms/products 126–7 Oxbridge Climate Capital 175 Oy Nokia 230 P Pacific Brands 140 Page, Larry 375 Paget, Reed 195 paid maternity leave 456 Pakistan, floods 67 palm oil production 329–30 Palmisano, Sam 238 Panozza, Kevin 586–7 on Maslow’s theory 559–60 parental leave 108, 456 parochialism 126, 130, 132 Patagonia, sustainability 69 PATH 196 path–goal theory 613–15 pay-for-performance programs 588 Peale, Norman 198 Pears, Alan 73 Pearson Australia 567, 702 people as assets 426, 565, 603, 627, 702 changing 220, 221–2 judging 496 people-oriented organisations 426 people skills 22, 492 PepsiCo Inc 310 perceived organisational support 480 perception 494, 494–5 attribution theory 495, 495–6 management issues 496–7 performance 657 comparing with standard 653–4 correcting 655 see also organisational performance performance appraisal and ethics 182–3, 190–1 giving feedback 445–6, 675 methods 444–5 of teams 541 and value chain management 700–1 performance management system 444 performance measurement 652–3 range of variation 653, 654 performance orientation 149, 150 performance-simulation tests 437, 438–9 performing 521 personal space 131 personalisation 415 personality 97, 98, 188, 486 benefits of understanding 492–3 Big Five Model 487–8 Holland’s typology 492–3 locus of control 488, 490, 493 Machiavellianism (Mach) 488 MBTI 486–7 proactive 490 resilience 490 risk taking 489 self-esteem 489 self-monitoring 489 tests of 493 PETA (People for the Ethical Treatment of Animals) 88 PetroChina 127, 128 pharmaceutical industry 338 philanthropy, corporate 197–8 Philippines, labour costs 60 Philips Electronics 242–3 physiological needs 559 pig-iron experiment (Taylor) 47 plagiarism 415 planned economy 145 planning 13, 14, 214, 294 commitment concept 306 decisions 268 in dynamic environments 308–10 effect of culture on 105 with employee involvement 306–7 and feedback 663 forecasting 311–13 goal setting in teams 541 in organisation hierarchy 305 and performance 296 planning–controlling link 650–1, 676–7 primary function 297 projects 307, 307–8 reasons for 294–5 time spent, by organisation level 19 traditional approach 306 and uncertainty 306 plans 297, 310 directional 300, 301 long-term 300, 306 operational 300, 305 short-term 300 single-use 300 specific 300, 300 standing 301, 303–4 strategic 300, 305 types of 299 plastic bottles 69 police force, diversity 451 policy 272 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 748 17/6/11 11:24:27 AM www.downloadslide.com INDEX political correctness 405 politics, and business 89 pollution 176–7 polycentric attitude 130 Ponsford, Claire 392 population ageing 62, 63, 91, 137 China 91 growth in Australia 62–3 India 91 total world 137 Porter, Michael 337–40 Portugal 567, 579 position power 611 Post-It Notes 102 post-war group 90 Poulos, Peter 657–8 Poulos Bros Seafood 657–8 poverty 68, 111, 330 power and information 67, 624 in leaders 620–2 need for (nPow) 562 power distance 147, 148, 149, 150, 382, 567 Power, Keith 425 The Power of Ethical Management (Blanchard/Peale) 198 praise 584 Pratt, Richard 61, 178, 194, 624 prejudice 498 pressure groups 88 price fixing 61, 178, 192, 194, 624 pricing, multi-tiered 245 principles of management 48–9 Principles of Scientific Management (Taylor) 46 privacy, at work 671–2 proactive personality 490 proactive perspective of work design 572 problem-solving teams 538 problems 263 identifying 263–4, 282 skills training 443 structured 272 unstructured 273 procedural justice 574–5 procedures 272 process conflict 533 process consultation 222 process departmentalisation 362, 363 process development 345 process efficiency 661 process production 371 Proctor & Gamble 91, 128 innovation strategy 345 product departmentalisation 361, 362, 363 product design, case study 286–8 product development 346, 379 productivity 660, 693 and disabled workers 453 and downsizing 232 and group cohesiveness 530 and job satisfaction 477, 484 of management 694, 695 managing 693–4 and teams 376 work specialisation 361 products, tradability 142 professionals, motivating 582 profitability 20, 68 profitability ratios 663, 664 programmed decisions 272, 273 Project Impact 244–5 project management 307–8 project structure 375, 376–7 projects 307, 364 punishment 500, 568 purpose 111, 112 Putting RFID to Work (case) 715–16 pyramids 44 Q Qantas Airways 142, 269, 329, 338, 487, 588 alliance 141 benefits of diversity 451 customers’ needs 24 equal opportunity 432 Iceland volcano 317 need for change 212–13, 214 price war 86, 322–3 restructure 220 takeover bid rejected 679 training/safety 213, 442, 706 QBE Insurance 142 Qian Hu 704 qualitative forecasting 312 quality 337, 707 controlling for 709 organising/leading for 708 planning for 707–9 quality control 706–7 feedforward 662 ISO 9000 710 quality dimensions 707, 708 749 Six Sigma 710 statistical 50 TQM 51 quantitative approach to management 50–2 quantitative forecasting 312 Queensland floods 23, 67 University of 274 R Radical Leadership (case) 636–7 radio frequency identification (RFID) 705–6 Rance, Jason 544 randomness bias 278, 278 range of variation 653, 654 rankings, industry/firm 660–1 rating scales BARS 445 graphic 445 ratio analysis 663–4 rational decision making 269–70 Raven, Bertram 620 readiness (of followers) 612 real goals 298 realistic job preview (RJP) 440–1 receiver (of communication) 397 recognition see employee recognition programs recruitment 435–6 diverse 450–1 employee referrals 435–6, 450 main sources 435 recycling 68, 628 garments 69 reference checks 441 referent power 621 referents 574 reflection 16 regional trading alliances 133–6 reinforcement (of learning) 497, 499, 500 reinforcement theory 567–8, 577–8, 587 reinforcers 567 related diversification 334 relational perspective of work design 572 relationship conflict 533 reliability, of selection device 437 religion, in workplace 112, 452 remuneration see compensation renewal strategies 335 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 749 17/6/11 11:24:27 AM www.downloadslide.com 750 INDEX representation bias 278, 278 resilience 490 resistance to change 223–8 resource allocators 15, 16, 21 resources 330 consumption 176 improved usage 73–4 scarcity 68 resources industry employee training 442 struggling 85 responsibility 364 see also social responsibility retailing, successful 101 retirement 63 retrenchment strategy 335 reward power 620 rewards 183, 184, 499 and equity 579, 590 to motivate diverse workforce 580–1 programs 585–9 as reinforcement 567, 577–8, 590 for teams 541 see also expectancy theory Rio Tinto 61, 196 efficiency 12 global giant 142 indigenous program 583 risk 275 risk taking and innovation 107 propensity for 489 rituals 102, 231 Ritz-Carlton Hotels, personalisation 415 rivalry, industry 339 Rivers Footwear & Clothing 140 people orientation 97, 456 Roddick, Anita 100, 616 Roebuck, Greg 65 Rogers, Jeffrey 625 roles 525 dysfunctional 525 maintenance-related 525, 526 role conflict 525 self-oriented 525, 526 task-related 525, 526 team leaders 620 Ross, John 306 Roughgarden, Trish 692 Royal Automobile Club of Victoria 707 Rudd, Mike 694 rules 272 Russia 579 service industry 24 Ryan, Peter 228 S safety, in workplace see occupational health and safety safety needs 559 SalesForce 586–7 SalvageSale 344 Salvation Army 89 Samsung 91 people management 64–5 Sandison, David 111 SAP (German, software), case study 158–9 Sarbanes-Oxley Act 2002 (US) 192, 195 satisficing 270 Saunders, Anne 411–12 Scandinavian leaders 631 Schrempp, Jürgen 342 Schultz, Howard 711 Schumpeter, Joseph 242 Schwartz, Brian 452 scientific management 46–8, 220 Screw It, Let’s Do It (Branson) 619 SEEK Ltd 556–7, 567, 587 selection devices 437, 440–1 application forms 437, 438, 441 background investigations 437, 438, 439–40, 441 interviews 437, 438, 439, 440, 441 performance-simulation tests 437, 438–9 physical exams 437, 438, 440, 441 realistic job preview 440–1 validity of 440, 441 written tests 437, 438, 441 selection process 436–7 diverse/inclusive approach 451 outcomes 437 validity/reliability 437 selective perception bias 278, 278 self-actualisation needs 559 self-awareness 492 self-development opportunities 583 self-efficacy 567 self-employment 28–9 self-esteem 489 self-interest concept 579 self-knowledge 22 self-managed work teams 375–6, 427, 520, 538, 623, 709 self-management 28–9, 492 self-monitoring 489, 629 self-motivation 492 self-oriented roles 525, 526 self-serving bias 278, 278, 496 sellers, bargaining power 339 Semco Group 636–7 Semler, Ricardo 616, 636–7 sender (of communication) 396–7 sensitivity training 222 service organisations 24, 693 front-line employees 479, 584 job design 572 role of communication 414–15 service profit chain 676–7, 677 sexual harassment 452, 454–6, 454 cost 455 employer’s liability 454, 456 shaping behaviour 499–500, 501, 586 share ownership 588–9 Shari’ah law 666 Shell Australia 459 Sherry, Nick 666 Shirley, Donna L 241 short-term plans 300 Siemens AG 190 partnerships 697 simple structure 372, 374 Sinclair Knight Merz (SKM) 452 Singapore 401–2, 456, 542, 564, 579 Singapore Airlines 212, 213, 345 customer service 477–8, 479 role models 500 Singapore–Australia Free Trade Agreement 133 single-use plans 300 situational approach to management 58 Situational Leadership Model 612–13 readiness 612 Six Sigma 710 skill-based pay 446 skill shortages 583 skill variety 570 Skinner, BF 497, 567 Skoda Auto 694 Slovakia 579 Slumdog Millionaire 508 small and medium-sized enterprises (SMEs), going international 143–4 small business 20–1, 28 focus strategy 340 SMEs see small and medium-sized enterprises smiling 402 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 750 17/6/11 11:24:28 AM www.downloadslide.com INDEX Smith, Adam 45, 361 Snowy Hydro 665 mission 327–8 Social Accountability 8000 125 Social Connections (case) 462–3 social entrepreneurs 195–6 social interaction 396, 410 informal groups 520 lack of 413–14 style 486 at work 572, 582 social learning theory 499 social loafing 529, 543 social media see social networking sites social needs 559 social network structure 545 social networking sites 308, 392, 411, 414 social obligation 171–2 social responsibility 168–73, 170, 172 arguments for/against 171 classical view 169 and economic performance 173–4 socioeconomic view 169–70 social responsiveness 172–3 social screening 174 social skills 22, 492 socialisation 101 socially responsible investing 174 Société Générale 650, 663 society, changing expectations 89 sociocultural system, effect on communication 396–7, 401–2 socioeconomic view of social responsibility 169–70 software copying 673 solar energy 74 Sony 92, 710 global 139 job sharing 581 product innovation 97 South Africa 675 South Asian Association for Regional Cooperation (SAARC) 136 South Korea 100, 402, 542 leaders 631 ship making 708 South Pacific Laundry, energy efficiency 264–5 Southern Common Market 135, 136 Southwest Airlines 110, 111 customer service 112, 677 Spain 428 Spalding, Margot & Alan 326–7 spam 413 span of control 364, 364–6, 626 Spartan Motors 342 SPC Ardmona 173 specific environment 87–8 specific plans 300, 300 Speedo, global team 544 Spencer, Melissa 108 spokesperson role 15, 16, 21 St George Bank 602, 608 St James Ethics Centre, Sydney 61 Corporate Responsibility Index 110 stability strategies 334–5 stakeholder relationship management 95–6 stakeholders 95–6, 96 engaging in sustainability 110 Standard & Poor’s 661 standards, revising 655 standing plans 301, 303–4 Starbucks improving operations 711 IT use 411–12 product development 241 staff training 101 stakeholders 95 sustainability 178 Starbucks and McCafé (case) 350–2 stated goals 297–8 statistical quality control 50 status 528 status symbols 131–2 Steele, Mairi 11 Stellar, OBM 585 stereotyping 496, 497, 498–9, 621 global teams 542 Stern Review 175 Stockland Hotel Group, cultural sensitivity 452 stories, organisational 102, 231 storming 521 Straberg, Hans 217 strategic alliances 141, 623 strategic business units (SBUs) 336, 337 strategic flexibility 342, 343 strategic leadership 341–2, 342 strategic management 324–5 importance 325–6 strategic flexibility 342, 343 strategic leadership 341–2, 342 strategic management process 327–32, 328 strategic plans 300, 305 751 strategies 324 strategy–structure frameworks 370 StrawberryFrog 377, 378, 538 strengths 331 stress 233 ambiguity-induced 235–6 causes 233–4 and long hours 235 personal 236 reducing 235–6 symptoms 234–5 strong cultures 98–100, 183, 228, 229, 331, 557 structured problems 272 stuck in the middle 340 subprime mortgages 262 substitute products 339 SuccessFactors 413 succession planning 658 suggestion boxes 668 Sumo Salad, viral marketing 65 Suncorp 198 sunk costs error 278, 278 supermarkets energy use 73–4 strategy 324 suppliers, importance of 87 supply chain 698 Surf Life Saving Australia 173, 179 survey feedback 221–2 survivor stress 450 sustainability 25–6, 26 and change/innovation 241–6 creating culture that embraces 109–10 eco-effectiveness 26–7, 244 eco-efficiency 26, 27 and ethical transformational leadership 627–9 on global scale 152–4 and goal-setting theory 569 help from AGL 696 and HRM 427–8 and motivation 427–8 and organisational design 380–1 palm oil and 329–30 plastic bottle fleeces 69 see also environmental sustainability; green initiatives sustainability-driven innovation 242–6, 243, 380–1 sustainability reports 178, 180 sustainability teams 534 sustainable management 67–8 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 751 17/6/11 11:24:29 AM www.downloadslide.com 752 INDEX Sustainable Sydney 2030 669 Sutton, George 408 Suzuki, David 346 Svenska Handelsbanken, autonomy 382–3 Swartz, Jeffrey 183 Sweden 134, 432, 454, 579 union membership 429 Switkowski, Dr Ziggy 80, 82 SWOT analysis 331 Sydney Opera House 406 construction 306 Symantec, case study 386–7 symbolic view of management 82, 83 system franchising 678 systems 56 Sztykiel, John 342 T Taback, Stan 434 Taco Bell, in India 131 Talbot, Don 561 Tang, Kenny 175 task conflict 533 task forces 520 task identity 570 task-related roles 525, 526 task significance 570 task structure 611 Tasmania, Gunns pulp mill 88 Tata, Ratan 240 Tata Motors, India 43 innovation 24, 240 taxation policies 146 Taylor, Barry 197 Taylor, Frederick W 46, 47, 48, 220 four principles of management 47 team building 221, 376, 543, 545 case study 548–9 team structure 375–6 teams 10, 11 as change agents 534 COIN 66 cross-functional 363, 381, 406–7, 520, 538, 623, 709 effective 539–40, 545 empowered 382 feedback 540 global 542–5 leading 524, 540, 541, 619–20 managing 524, 540–1 multicultural 152 performance incentives 588 problem-solving 538 recovery plans 307 self-managed 375–6, 427, 520, 538, 623, 709 support for 540 supportive 108 for sustainability 534 types of 537–8 virtual 538, 543 volunteering 557 vs groups 536–7 technical skills 17 technology information access 91 manager’s options for changing 219–20, 220–1, 220 in operations management 705–6, 712 rapid change 91, 215, 217 and structure 371 telecommunications constant change 218 deregulation 214, 215 telecommuting 581, 582 Telefonica, structure 139 televison, expanding choice 88 Telstra 96, 173, 414, 487 consumer churn 676 culture change 80–1, 82 job cuts 231–2 pressure on executive pay 88 strategy change 215 web-based replenishment 694 temporary work 93, 429, 582, 584 terrorism 149 Tertini, Julian 625 Tesco (UK), environmentally friendly stores 74 Texas Instruments, teams 619 Thailand 60, 564 import tariffs 133 reduced work hours 428–9 Theory X & Theory Y (McGregor) 560–1, 564 therbligs 48 thinking style linear 277 non-linear 277 Thodey, David 81, 82 threats 329 three-needs theory (McClelland) 562–3, 563, 564 Tiger Airways 88 functional strategies 340 price war 86, 212, 214 Till, Joanne 710 Timberland 110, 426 slogan 111 values-based management 183 time-and-motion studies 48 time management 236 Titan Corporation 186 TNT 129 tolerance 524 tomato growing 242 tone of voice 398, 402 toolmaking 260–1 Toomey, Gary 83 top managers 11 corporate strategy 332, 333 and culture 100–1 encouraging collaboration 22 endorsement 110 and ethics 190 skills needed 17, 18 as storytellers 102 time spent per function 19 TOTAL, SA 176–7 total quality management (TQM) 51–2 Towers Watson Toyo Australia 537 Toyota 43, 59–60, 91, 198 case study 116–17 innovation 239 Prius 242, 330, 628 supplier links 87 Toyota Australia 139–40, 668 automation 221 Earth Charter 628 water conservation 173 trade barriers 91, 149 Trade Practices Act 1964 61, 624 traditional goal setting 301–2, 302 traditional view of conflict 533 training 442–3 in diverse workforce 451–2 for leadership 629 and quality assurance 709 value chain 702 training methods 443–4 trait theories of leadership 604–5 transactional leaders 616, 627, 631 transformational leaders 616, 625, 627–9, 631 transnational organisations 139 Trend Micro, virtual organisation 379–80 trigeneration 670 triple bottom line 68, 179 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 752 17/6/11 11:24:30 AM www.downloadslide.com INDEX Troughton, Katrina 622 Trujillo, Solomon 80–1, 82, 88 Trumball, George 626 trust 108, 111, 112 and leadership 623–4, 625, 626 in teams 539–40 in value chain 703 Tupperware 343 turnaround strategy 335 Turner, Graham 530–1 turnover 475, 504 and job satisfaction 478–9, 484 reducing 587 Turramurra Public School 534 Twitter 392, 408 two-factor theory (Herzberg) 561, 561–2, 562, 564, 580 U ultraviolet radiation 459 UN Climate Change Conference (2009) 153 uncertainty 23, 275–7, 281 planning for 295, 306, 309 strategy 325 uncertainty avoidance 148, 149, 150, 567, 579 Understanding HCLites (case) 508–9 unethical behaviour 61 factors affecting 181 managing 192–3, 195 unfair dismissal 89 Unilever 135, 330 development assistance 244 sustainable tomatoes 242 unions 429–30 Unique Tooling 709 Unisys 707 unit production 371 United Kingdom 129, 145, 579 euro opt-out 134 export market 143 service industry 24 status 543 sustainable firms 178, 179 United Parcel Service change 236–7 driver training 458 United States 145, 456 export market 143, 144 free trade agreement 133 job losses 93, 429 monolingualism 129 motivation theories 579 service industry 24, 693 sexual harassment 454, 455 subprime mortgages 61 sustainable firms 178, 179 union membership 429 US–Central America Free Trade Agreement (CAFTA) 135 unity of command 364 universality of management 18, 19–22, 27–8, 28 universities, sustainability 274 University of Iowa, leadership studies 606 University of Melbourne 274, 295, 296 University of Michigan, leadership studies 606–7 University of Queensland 274 University of Western Australia 303–4 unrelated diversification 334 unstructured problems 273 upward communication 406 V validity, of selection device 437 value chain 698 misuse of power 701 vs supply chain 698 value chain management 697–8 benefits 699 goal 698–9, 700 obstacles to 703, 703, 705 six requirements 699–702 using, to manage operations 699–705 value (of goods/services) 697–8 values 182, 188, 191 and sustainability 110 unspoken 104–5 and workplace spirituality 110–11 values-based management 183 van der Veer, Jeroen 371 variable pay 446 Vedior Asia Pacific 583 Venetian business enterprise 44–5 verbal intonation 398, 402 vertical integration 333 Verwaayen, Ben 628 Vesper, Chris 260–1 Victoria bushfires 67 floods 67 videoconferencing 411, 412, 414 in training 444 Vietnam 145, 456 753 Villa & Hut 140–1 violence, at work 674–6 viral marketing 65 Virgin Blue 86, 88, 329, 426 change of strategy 338 customer service 109 low-cost 212, 213, 214, 322–3, 339 Virgin Earth Challenge 244 Virgin Green Fund 618 Virgin Group 244, 618–19 Project Aware 618 Virgin Unite 618 virtual organisations 377, 380 virtual teams 538, 543 The Virus Hunters (case) 386–7 virus software 380 visionary leadership 617 visions 617, 628 Visy Group 61, 178, 192, 194, 624 Vodafone Australia 710 Voelte, Don 197 Volkswagen 177 volunteer workers 108, 173, 198, 557 Volvo 43, 536 carbon-free plants 25 von Weisäcker, Ernst 73 Vroom, Victor 54, 575 W Wal-Mart 128, 198 green initiatives 153 Walton, Sam 100 water conservation 67, 68, 172 water shortage 62, 68, 175 Wavelength International, Yammer 392–3, 406, 409, 414 weaknesses 331 The Wealth of Nations (Smith) 45 The Weather Makers (Flannery) 175 web browsing 671–2 Weber, Max 48, 49 websites, interactive 414 Weick, Karl 281, 283 Welch, Jack 377 wellness programs 236 Wesfarmers 9, 95 CEO Goyder 268–9 strategy 324, 326 Western Australia, University of, Diversity Job Bank 303–4 Westernisation 151–2 Westpac Banking Corporation 25, 128, 324 cultural diversity 63–4 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 753 17/6/11 11:24:30 AM www.downloadslide.com 754 INDEX Westpac Banking Corporation (continued) employee volunteers 198 job cuts 231 leader Gail Kelly 602–4 sustainability 110, 178, 179–80, 245, 603, 628 Wheeler, Tony & Maureen 518–19 Whirlpool 287 whistleblowers 106, 193, 195 Whitacre, E 373 white-water rapids metaphor of change 217 Whole Foods Market (US) 74 WikiLeaks 67, 413 Williams, Ray 61, 624 Wiltshire, Horden 621 wind farms 227–8 Wipro Ltd 310 wireless capabilities 411–12 women career progress 452 increasing number in workforce 451 as leaders 631–3, 632 mentors for 583 in top management 10, 11–12, 223, 368, 621, 631, 632 Woodside Petroleum 197 Woodward, Joan 371 Woolworths 324, 330, 426, 588 CEO in-store 100–1 corporate strategy 332–3 e-recruitment 435 joint venture 333 mission 332 power in value chain 701 quality assurance 707 work compressed work-week 581 contract 28–9, 125, 429, 582 interesting 580 long hours 477 overtime 477, 499 reality of 28 temporary 93, 380, 429, 582, 584 work design high-involvement work practices 572 proactive perspective 572 relational perspective 572 work groups see teams work–life balance 23, 89, 152, 456–7, 477, 603 constant accessibility 412 customising 580 family-friendly benefits 456–7 programs 580–1 work sampling 438 work specialisation 361 work teams 537 see also teams workers’ compensation 458, 674 workforce changes in 215 global 152 non-employees 380 women in see women workforce diversity 11–12, 62–4, 325–6 and communication 397 cultural 60 and inclusion 450–2, 453–4, 498, 583, 621–2 managing teams 524, 543 and motivation 580–2 orientation/training 451–2 programs 63–4, 451 and skill shortages 583 value in decision making 279 workplace equity 432 hazardous 675 multigenerational 63, 501 negativity 503–4, 526 workplace design, and communication 410 workplace misbehaviour 475 and job satisfaction 479 workplace monitoring 671–2, 672 workplace privacy 671–2 Workplace Relations Amendment (WorkChoices) Act 2005 214–15 workplace spirituality 110–12 and profits 112 workplace violence 674–5 control measures 676 World Bank Group 138 world poverty 68, 111 World Trade Organization (WTO) 136, 151 World Vision Australia 89 culture 106, 110, 111 Wrigley, database 414 written essays 445 WTO (World Trade Organization) 136, 151 X Xerox, war stories 414 Xerox Canada 395 Y Yammer 392–3, 397 Yap, Kenny 704 Yarra Valley Water, upward communication 406 Yasi, cyclone 408 Yasuda, Max 628 YouTube 65, 392, 412 Yum Brands 131, 587 Yunus, Muhammad 244, 245 Z Zaid Ibrahim & Co 666 Zantek 708–9 zoomers see Generation X Zuckerberg, Mark 102 Zumbo, Adriano 325 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 754 17/6/11 11:24:31 AM www.downloadslide.com Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 755 17/6/11 11:24:31 AM www.downloadslide.com Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2012 – 9781442538603 - Robbins/Management 6th edition Robbins 6e 2ndpp *Index.indd 756 17/6/11 11:24:31 AM ... Australia Group Pty Ltd) 20 12 – 97814 425 38603 - Robbins /Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 381 16/6/11 3:43:50 PM www.downloadslide.com 3 82 part part organising In a learning... Australia Group Pty Ltd) 20 12 – 97814 425 38603 - Robbins /Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 363 16/6/11 3:43:36 PM www.downloadslide.com 364 part responsibility part The obligation... Australia Group Pty Ltd) 20 12 – 97814 425 38603 - Robbins /Management 6th edition Robbins 6e 2ndpp *Pt4 Ch10.indd 367 16/6/11 3:43:38 PM www.downloadslide.com 368 part review questions part 10.3 Learn in