Ebook Management (3rd edition): Part 2

(BQ) Part 2 book Management has contents: Leadership, motivation, groups and teams, communication and negotiation, individual and group decision making, operations management, organizational change and development, control.

Part Three Leading Chapter Leadership Chapter Motivation Chapter 10 Groups and Teams Chapter 11 Communication and Negotiation Chapter 12 Individual and Group Decision Making 203 Leadership LEARNING OBJECTIVES After studying this chapter, you should be able to: Define leadership and be able to discuss its significance in organizations Compare managing and leading and differentiate between them Analyze a leader’s sources of power and issues in using power effectively Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another Explain the conditions that can substitute for, or neutralize, effective leadership Plan how to improve your own leadership capabilities 204 Managerial Challenges from the Front Line Courtesy of Taylor Ridout, The Shoppes at Brownstone Village Name: Taylor Ridout Gray Position: Owner and Operator, The Shoppes at Brownstone Village, Arlington, Texas Alma mater: University of Texas at Austin (BA in Advertising) Outside work activities: Swimming as a family First job out of school: Events coordinator for a trading-card company Hero: My parents Motto to live by: Several, including: “trust your instincts”; “think, execute, and balance”; and “do the right thing” Management style: Firm, but friendly When she was growing up in Arlington, Texas, a city between Dallas and Fort Worth, Taylor Ridout Gray used to go to a nearby skating rink Over the years, though, she stopped going there because it had become somewhat dilapidated and rundown However, a few years later, after graduating from college, and with the help of her father, a developer, she bought the rink! By her late twenties Gray had totally remodeled the structure and turned it into a retail complex of boutiques and restaurants called The Shoppes at Brownstone Village Developing and marketing the site haven’t been major hurdles for Gray, given her educational and family background In fact, that was almost easy compared to the challenge of developing an appropriate leadership style to manage the complex’s hundred or so employees and vendors In her first job out of college, Gray obtained plenty of marketing savvy and experience by coordinating events at the Super Bowl and World Series for her employer, a trading-card company She found the job really interesting, and even exciting, but after her first child was born, she realized she needed to reduce the extensive travel involved in her event-coordinating job and find something closer to home that did not require frequent out-of-town trips That’s when she decided to follow her father’s footsteps and try her hand at developing a piece of property and then operating and managing the newly formed entity The Shoppes at Brownstone Village opened in November 2004 and immediately became—and continues to be—a popular local shopping destination Customers flocked to the stores and even created a typical good news/bad news problem: Too many cars, too few parking places But that problem was not as difficult for Gray to solve as figuring out how to lead the employees and vendors who worked for and with her As she says, her natural tendency is to “want everybody to be friends.” That philosophy of congeniality guided her leadership approach in the early months following the Shoppes’ opening However, she soon found this approach didn’t work very well and many employees were performing in a rather indifferent and laid-back manner As Taylor Ridout Gray had to learn at the beginning of her managerial career, leadership is an undeniably critical part of the overall management process It lies at the very heart of that part of managing that deals with “Leading” (the title of this part of the book) Without leadership, organizational performance would be minimal Indeed, it would be difficult if not impossible to talk about the accomplishments of twenty-first-century organizations of all types—whether in business, government, education, or other settings—without referring to the role that leadership played in those successes Clearly, leadership is important to organizations, and to society at large What is not so clear is how to increase its presence in organizations and its effectiveness That is the managerial challenge—the one faced by Taylor Ridout Gray But she is no exception Leadership is, above all, a process of influence As such, it is not a set of behaviors limited to the chief executive officer, the executive vice president, the director of manufacturing, the regional marketing manager or, for that matter, a sports team’s coach or captain It is a process that almost anyone can exhibit, potentially anywhere in an organization However, although acts of leadership in an organization can be widespread and commonplace, often they are not The central issue, then, both for organizations and for individual managers, is to turn leadership potential into reality The very fact that so many articles 205 206 PART THREE • LEADING and books have been, and continue to be, written on the topic of leadership is a good indication that this challenge is not being met well by either the typical organization or the practicing manager This chapter addresses three age-old questions: What is leadership? Are leading and managing the same? Does leadership differ across national cultures? Next, it explores the relationship between leadership and its close cousins, influence and power Following this, the chapter identifies different sources and types of power and analyzes issues in how to use power effectively This provides a background for examining the basic elements of the leadership-influence process: the leader, the followers, and the situation Throughout this discussion of the process of leadership, we explain different theoretical approaches at the place where they are most relevant to a particular part of the process The chapter concludes by examining whether there are effective substitutes for leadership What Is Leadership? organizational leadership an interpersonal process that involves attempts to influence other people in attaining organizational goals Although leadership is a familiar everyday term, it’s nevertheless far more complex than one might assume That’s what makes it such an interesting and intriguing subject Let’s look at how organizational scientists have defined the term leadership Unfortunately, there is no clear consensus because, as one prominent scholar observed some years ago, “There are almost as many definitions of leadership as there are persons who have attempted to define the concept.”1 Consistent with most definitions, however, we define organizational leadership as an interpersonal process that involves attempts to influence other people to attain a goal While there is general agreement that leadership is an influence process, there is less agreement on (1) whether the definition must refer only to influence used by those occupying a designated leadership position (a “manager,” “president,” “chairperson,” “coach,” and so forth), (2) whether the influence must be exercised deliberately and for the specific attainment of the group’s or organization’s goals, and (3) whether the compliance of others must be voluntary Our view on each of these issues follows As we explained at the outset of this chapter, anyone can exhibit acts of leadership behavior in an organization, and those acts are not limited only to persons holding designated leadership positions (In recent years, some have termed this way of looking at leadership as “distributed leadership.”)2 In particular, this means that leadership should not be thought of as occurring only, or even mostly, at the top of the organization Leadership can also be seen in the actions of the first-line supervisor who inspires her subordinates to increase their attention to safety procedures to avoid production downtime The group member who champions his team’s new product and convinces others of its potential demonstrates leadership The human resources manager who makes sure—without being ordered to—that those in the human resources division treat all applicants for positions with the company respectfully and equitably shows leadership Workers who set an example for their coworkers by continually seeking ways to improve processes and working conditions exhibit leadership Ordinarily, however, people in positions that are labeled managerial or supervisory have more opportunities to exert leadership Also, leadership behavior is expected more frequently from supervisors and managers than from other types of employees Such expectations often profoundly affect the behavior of both those who hold leadership positions and those around them Expectations count! For instance, pharmaceutical giant Johnson & Johnson (J&J) prides itself on its dedication to ethics in management and, as such, J&J employees expect their managers to demonstrate such standards—to lead by example, in other words A manager who does not abide by the ethical principles of the company, or who is even perceived as not adhering to them, is likely to lose first the trust of employees, followed by the ability to lead them effectively.3 A very recent example of J&J’s leadership expectations occurred when a problem developed with product contamination from manufacturing process lapses and subsequent efforts by marketing managers to minimize official recalls of the product The company promptly demoted six “key executives” who had responsibility for production and over-the counter-sales.4 CHAPTER • LEADERSHIP 207 DIVERSITY A MANAGER’S CHALLENGE Leading at the Top—While Still Under 30 E lsewhere in this chapter we will talk about the role that leadership-type experiences play in developing future top executives Ordinarily, in past years, in organizations larger than several hundred employees, senior executives would have acquired those experiences at lower levels before ascending to leadership positions at or near the top More importantly, by the time in their careers that they arrived at those lofty echelons they would be in their forties or fifties (Bill Gates in the 1980s being a notable exception, of course) These days, however, as part of a greater overall trend of diversity in composition of organizations, there are an increasing number of significant firms in the business world who are led by chief executives who have never had this kind of background and who are not yet even 30 years old! Why? In most cases it’s because they are (like Bill Gates was) the founders or co-founders of their companies One of the poster boys, so to speak, for this phenomenon is Mark Zuckerberg, the founder of Facebook, the world’s largest social network Starting from a dorm room at Harvard in 2004, Zuckerberg rapidly implemented an internet version of a paper Facebook student directory with pictures that had been popular at his high school, Phillips Exeter Academy Within two weeks after Zuckerberg launched his Harvard effort, half of the colleges in the Boston area were clamoring for a Facebook network Only four months later, with the help of two close friends, Zuckerberg’s Facebook had expanded to include over 30 college networks, and he was already turning down an offer of $10 million for the company Skip ahead six years to 2010 By that time, Facebook had over 400 million active users, more than 1,000 employees and revenue (in fiscal 2009) of over $50 million, and Zuckerberg (now all of 25 years old) had several years before turned down an offer of $1 billion for the company For now (in 2010) at least, he clearly seems to want to remain leader of his company With a reputation as a demanding boss, he is highly task-focused As one employee said, “[When] working with Zuck [don’t] expect acknowledgment for your role in moving the discussion forward—getting the product right should be its own reward.” Running a company growing at warp speed has not been easy Zuckerberg added an experienced executive from Google as second in command and has put several other senior executives from other companies on Facebook’s Board of Directors Even so, there have been problems For example, in late 2009 Facebook received considerable criticism for a redesign of its privacy controls that resulted in some account data of users becoming public; because of this backlash, the company altered some of its previously instituted changes This is just one illustration that starting an organization with an innovative idea is one thing; leading it as it grows and evolves is something different In the view of Yale management expert Jeffrey Sonnenfeld: “Facebook is in the phase where some founders get themselves in trouble by being too sure of themselves [Facebook] is at a crossroads where we have to see if Mark can build a team strong enough to challenge him.” Perhaps it is worth noting that in early 2009 Zuckerberg had changed his business attire from T-shirt, jeans, and sandals to a buttoned-down shirt and tie “This is a serious year,” he explained Of course, Mark Zuckerberg is just one example of current top leaders under the age of 30 Others would include Chase Mattioli who, at 20, was vice president for Mattioli Racing; Michael Seibel, CEO of Justin TV; and Nathaniel Broughten who, by age 27, has already been involved with five start-ups Whether ten years from now any or all of these and other similar under-30 early leaders of firms will still be managing and leading organizations effectively is an open question At the least, their career trajectories and accomplishments should provide additional evidence on the issue of how necessary, or not, experience in leadership positions at lower levels of organizations is for leading at the top Sources: FaceBook Company website FactSheet http://www.facebook com/home.php#!/press/info.php?factsheet Accessed 6/4/2010; Milani, J (2009) Literally “driving” a new business, Chase Mattioli Under 30 CEO: Live the Dream http://under30ceo.com/literally-driving-a-newbusiness-chase-mattioli/ Accessed 5/29/2010; Anon (2/23/10) Skip class, Make money: CEO Nathaniel Broughton Under 30 CEO: Live the Dream http://under30ceo.com/skip-class-make-money-ceo-nathanielbroughton/ Accessed 5/29/2010; Fenn D 10/1/09 Getting by with a little help from their friends Inc.com http://www.inc.com/30under30/ 2009/articles/getting-by-with-a-little-help-from-their-friends.html Accessed 5/29/2010; McGirt, E (5/1/2007) Facebook’s Mark Zuckerberg: Hacker, Dropout, CEO Fast Company.com Accessed at http://www.fastcompany.com/magazine/115/open_features-hackerdropout-ceo.html Date accessed 5/21/2010; Vascellaro, J E (3/3/2010), Facebook CEO in no rush to ‘Friend’ Wall Street Wall Street Journal Online Accessed at http://online.wsj.com/article/SB1000142405274870 3787304575075942803630712.html?KEYWORDS=Facebook+CEO +in+no+rush+to+%27friend%27+wall+street Accessed on 5/21/2010 208 PART THREE • LEADING effective leadership influence that assists a group or organization to perform successfully and meet its goals and objectives People act as leaders for many reasons, and their efforts are not necessarily aimed solely at attaining a group’s or organization’s goals In other words, leaders’ motives can be directed at multiple objectives, including their own objectives, instead of the organization’s People’s motives are seldom single-focused However, for the sake of our discussion, in this chapter we will assume that leaders are seeking the attainment of the organization’s goals, regardless of their personal objectives The accompanying A Manager’s Challenge Box on “Leading at the Top—While Still Under 30” provides a good example of young leaders intent on pursuing goals of the organization – especially of one that they have created The use of coercion to gain compliance (for example, threats such as “do this or you will be fired”) is not typically considered leadership However, the dividing line between what is and is not coercion is often very difficult to determine Probably the safest generalization is this: the greater the degree of purely voluntary actions by followers toward the leader’s intended direction, the more effective the leadership The preceding discussion raises a further key issue: What is effective leadership? Put most simply, it is influence that assists a group or an organization to meet its goals and objectives and perform successfully This implies that effective leadership is “enabling” behavior— that is, it is behavior that helps other people accomplish more than if there had been no such influence.5 By their actions, those who exhibit effective leadership add an extra ingredient to the sum of the efforts of many people and thereby help them to achieve together more than they would have otherwise Effective leadership unlocks the potential that resides in other people Leading and Managing: The Same or Different? EXHIBIT 8.1 The Overlapping Roles of Leaders and Managers Leading and managing are two terms often used interchangeably But are they really the same? In recent years, some scholars have argued that the terms are different—that leadership involves creating a vision for organizations or units: setting, communicating, and promoting new directional goals and procedures, and inspiring subordinates.6 These activities can be contrasted with more mundane, task-oriented “managerial” functions, such as dealing with interpersonal conflicts, planning and organizing and, in general, implementing the goals set by others (the organization’s leaders) When leading and managing are defined in these ways, then, of course, they are different However, if we consider managing from a broader perspective, as it is throughout this book, the two activities not differ as much as might appear on the surface That is, managing ought to involve most of the kinds of activities that are included in the leader’s role Removing such “leading” activities from managing makes an artificial distinction between the two and relegates managing to a routine, almost trivial activity—which it is not The relationship between leading and managing can be illustrated using a Venn diagram, similar to those encountered in mathematics classes The diagrams consist of circles that are completely independent of each other, circles that overlap one another completely, or circles that partially overlap Imagine all the leaders from one organization in one circle and all the managers from that same organization in another The two circles are likely to be partially, but not totally, separate, as shown in Exhibit 8.1 Some people can be leaders, and some people can be managers; but many people can be both leaders and managers Bluntly, leadership is a very important component of management, but management is more than just leadership It includes other tasks that don’t directly involve influencing people Thus, although not all leaders are managers, and not all managers are leaders, modern organizations need most of their managers to engage in leadership behaviors such as those that foster innovation and creativity, inspire other people, and improve their organization’s performance Consequently, in this chapter and in this book, we view organizational leadership as a process that should be included as a significant part of the managerial role, but it is definitely not the total role Does Leadership Differ Across National Cultures? Does leadership differ fundamentally from country to country? Nobody knows for sure, although researchers are attempting to find out.7 As some observers point out: “Leadership is a fairly modern concept It did not appear in English-language usage CHAPTER • LEADERSHIP 209 EXHIBIT 8.2 Examples of Leader Attributes Universally Viewed as Positive ؉ Examples of Leader Attributes Universally Viewed as Negative ؊ Examples of Leader Attributes Viewed as Positive or Negative Depending on the Culture ؉/؊ ϩ Trustworthy ϩ Encouraging ϩ Honest ϩ Decisive ϩ Communicative ϩ Dependable – Noncooperative – Irritable – Dictatorial – Ruthless – Egocentric – Asocial ϩ/– Ambitious ϩ/– Individualistic ϩ/– Cunning ϩ/– Cautious ϩ/– Class Conscious ϩ/– Evasive Source: P Dorfman, P J Hanges, and F C Brodbeck, “Leadership and Cultural Variation: The Identification of Culturally Endorsed Leadership Profiles,” In R J House, P J Hanges, M Javidan, P Dorfman, and V Gupta (eds.), Leadership, Culture, and Organizations: The GLOBE Study of 62 Societies (Thousand Oaks: Sage Publications, Inc., 2004) 667–718 until the first half of the 19th century and has been primarily the concern of Anglo-Saxon influenced countries Prior to that, and in other countries, the notion of headship has been more prominent, as in the head of state, chief, or other ruling [italics added] position.”8 Or, as another scholar put it, “The universality of leadership [as a part of the managerial role] does not imply a similarity of leadership style throughout the world.”9 Experts on Southeast Asia, for example, point out two essential cultural features of leadership there: the requirement for order and compliance and the requirement for harmony.10 The “order” requirement involves traditional values that support the acceptance of hierarchies, conformity, and deference to authority The “harmony” requirement involves not only the obligations of the subordinate to the superior but also the obligations of the superior to respect the subordinate and care for his or her welfare This style can be summarized by the word paternalism, whereby a leader is regarded as the provider, or “father,” who will take care of the subordinate in return for responsible behavior and performance In addition to Asia, it is a style often found in Central and South American countries where there is a strong emphasis on collective values as opposed to individual values.11 Despite such differences, some similarities in leadership practices—such as giving subordinates more participation in the decision-making process—are beginning to appear with increasing regularity around the world.12 The results from the GLOBE project, the most recent and comprehensive international study of leadership, appear consistent with this conclusion as Exhibit 8.2 shows.13 According to the data collected for this study, certain leader attributes, such as “trustworthy” and “decisive,” are viewed as positive across all cultures Likewise, other attributes, such as “dictatorial” and “asocial” are universally viewed as negative However, how other attributes, such as “cautious” and “ambitious,” are viewed depends heavily on a particular culture and its values Some cultures view them positively, but other cultures view them negatively Because of expanding industrialization, the need for effective leadership has become a worldwide phenomenon Precisely how that need is being met in specific organizations and countries, however, still appears to be influenced by cultural circumstances and traditions Nevertheless, the picture of particular leadership styles and practices around the world at the beginning of the twenty-first century could change dramatically during the next few decades It already is in some places, as exemplified by Yifei Li, former head of Viacom’s China MTV and now head of Publicis Groupe’s Vivake in China.14 Yifei Li has been leading youth-oriented firms operating in the mostly older, male-entrenched regulatory bureaucracy of China She is normally confident, brash and upfront, but when interacting with the authorities she modifies her style somewhat A century ago, or even a decade ago, her natural leadership style would unlikely to have been tolerated, let alone accepted, in that kind of setting The Effect of Culture on Attitudes Toward Leaders’ Attributes PART THREE • LEADING Kistone Photography 210 Yifei Li is a high-level executive with Publicis Groupe in China Formerly she was the Managing Director of MTV Greater China, Executive Vice President of MTV Networks Asia, and the Chief Representative of Viacom China Smart, confident, and female, Yifei Li has had to take a different approach to dealing with male business people in that country “Particularly as a woman in China, you have to be a little bit softer, and humble,” she has said Yifei Li made The Asian Wall Street Journal’s “Ten Women to Watch in Asia” list in 2005 and 2006 Leadership and the Use of Power power the capacity or ability to influence It is virtually impossible to study leadership as a type of social influence without also taking into account the idea of power Power is typically thought of as the capacity or ability to influence Thus, the greater a person’s power, the greater the potential for influencing others Power can be used “to change the course of events, to overcome resistance, and to get people to things that they would not otherwise do.”15 However, the fact that a leader, or anyone else, has power does not guarantee that he or she will use it—or use it well Possession and use are two different matters Whether a leader will use power depends on many factors One principal reason leaders resist using their power, even when they can, is because they believe doing so will generate negative reactions As has been said, “For many people, power is a four-letter word.”16 The famous, but somewhat exaggerated, statement of this view of power was made more than a century ago in Britain, when Lord Acton wrote to Bishop Mandell Creighton that “power tends to corrupt [and], absolute power corrupts absolutely.”17 It is not too difficult to think of an organization where a would-be leader used power inappropriately This was illustrated some years ago when a chief executive officer of a consumer products manufacturer was removed from office, even though he had presided over a major turnaround that had brought the company out of bankruptcy The reason he was dismissed was because of the way he used his power to intimidate subordinates On occasion, he even threw objects at them when he was angry His actions so severely damaged morale at the company that the board of directors had no other option but to find a new CEO.18 It would be quite misleading, however, to regard power only from the perspective of the damage it can In many circumstances, a leader’s skillful use of power can produce positive outcomes Frequently, though, the problem in organizations is not that leaders use too much power but rather that they fail to use the power available to them.19 This was noted by two behavioral scientists who have studied leadership extensively when they said: “These days power is conspicuous by its absence Powerlessness in the face of crisis Powerlessness in the face of complexity .”20 CHAPTER • LEADERSHIP 211 Types and Sources of Power Power, however used, does not arise spontaneously or mysteriously Rather, it comes from specific and identifiable sources The two major types of power, based on their sources, are position powers and personal powers.21 Position power is based on a manager’s rank in an organization Personal power is based on a person’s individual characteristics Clearly, someone who wants to be a leader could have large amounts of both types of power, which should facilitate the exercise of influence For example, think about whether Taylor Ridout Gray, featured in the opening profile, had access to both types of power and whether this helped her to exercise influence There are also circumstances where a would-be leader might be low on both types of power, in which case the task of leading obviously would be more difficult For instance, a lower-level manager who lacks the initiative to develop new products or programs and who is a poor communicator would find it difficult to inspire subordinates to put out extra effort to make changes and reach new goals This manager lacks personal power and would be unlikely to be promoted—thus, also failing to increase his position power In many situations, though, a potential leader who is low in one type of power—for example, a person occupying a relatively junior-status position—can compensate for that by having very strong personal leadership characteristics that are recognized by other people, regardless of the person’s formal status in the organization To help us better understand the nature of power in organizations, it is helpful to think about several subtypes of position power and personal power (see Exhibit 8.3).22 position power power based on a person’s position and rank in an organization personal power power based on a person’s individual characteristics POSITION POWERS The powers associated with a position, include legitimate power, reward power, and coercive power Legitimate Power Legitimate power is a type of position power granted to a person—for example, a manager—by the organization It is sometimes called formal authority In the work setting, legitimate power is intended to give a manager the right to expect compliance by his or her employees It allows the manager to initiate or stop actions.23 In today’s organizations, however, with increasing levels of education of the workforce and changing societal norms about what is “legitimate” authority, the effectiveness of this type of power has distinct limits (The Manager’s Challenge box “Leadership Experience Counts” describes one set of leaders who have learned how to exercise this type of power but also understand something about those limits.) Often, subordinates will disagree about the scope of a manager’s authority; that is, they question the boundaries regarding “appropriate” requests For example, in the past, many managers expected their secretary or assistant to make personal appointments for them and perform other nonwork-related services Today, the relationship between a manager and his or her assistant has changed, and these types of requests are generally not considered legitimate The precise scope of legitimate authority in today’s complex organizations is ambiguous, and the resulting agreement between manager and subordinate can typically be more implicit than explicit, leaving room for potential conflict In addition, the extent of a manager’s formal authority is bounded by subordinates’ perceptions of that person’s credentials If the basis of a person’s selection for a managerial position is questioned, the leverage of Position Powers Legitimate—How much authority does the organization give to your position? Reward—Are you able to give others the rewards they want? Coercive—Are you able to punish others or withhold rewards? Personal Powers Expert—Do you have knowledge that others need? Referent—Do others respect you and want to be like you? legitimate power (also known as formal authority) a type of position power granted to a person by the organization EXHIBIT 8.3 Types of Power 212 PART THREE • LEADING CHANGE A MANAGER’S CHALLENGE Leadership Experience Counts—Especially Coping Experience I n almost any human endeavor that requires the exercise of skill, experience can be a potentially great asset This is especially so when the activity of leadership is involved But, not all types of experience are equally valuable when it comes to leading people in organizational settings One type of experience that does seem to be highly valuable, however, is learning to cope with ambiguity, change, and the unexpected One set of potential leaders in organizations who are particularly likely to have developed good coping skills are military veterans, especially officers who have had experience in leading subordinates in combat-type situations Furthermore, not only military officers have opportunities to learn lessons from their experiences in the field, but they also have had extensive prior training that helps prepare them to learn effectively from those experiences In the immediate decades following World War II, many executives had had this kind of experience For example, even in 1980, 59 percent of CEOs of large U.S companies had had such experience However, by the year 2006, that percentage had shrunk to only percent Subsequent to that year, though, due to the number of recent deployments to conflicts in various parts of the world, returning veterans are again becoming a promising source of managers with already-developed leadership skills and extensive coping experiences What is it about their experiences that make these former military officers especially credible as potential leaders in civilian organizations? In the words of U.S Army General David Petraeus, “These are pretty formative experiences It’s a bit of a crucible-like experience that they go through.” Another knowledgeable observer, a former British army officer concurs: “[Military officers] can analyze problems and produce solutions in a very short time [They] make tough choices every day.” Or, as Noel Tichy, noted management professor at the University of Michigan, puts it: “There’s a pool of these officers who have had the kind of under-fire judgment experience that makes them really valuable.” The fact that military officers who have completed their service in recent years are especially well equipped for leadership roles is no accident In 2001, a special panel, convened by the U.S Army, issued a report based on a year-long study of the qualities that officers would need in the changing set of circumstances in the post-Cold War era It concluded that “self-awareness” and “adaptability” were the two mostneeded attributes in today’s officer In the view of one former officer, “The Army has accepted that the future is uncertain and learned to embrace risk.” Similarly, GE CEO Jeffrey Immelt, in response to a question about what impressed him most about those with recent military experience, said: “Dealing with ambiguity.” Other pluses that observers have noted are “cultural sensitivity and ability to build new relationships” and “a highly tuned awareness of resources: budgets, equipment, and people.” Not everyone can have—and many certainly would never want to have—the experience of leading others in combat or similar dangerous situations, but everyone can learn something from their variety of experiences that helps them learn to cope better with rapid changes and unexpected events Military experience just happens to be one type that can especially accelerate such leadership relevant learning Sources: McCall, M W., Lombardo, M M and Morison, A M , “Lessons of experience: How successful executives develop on the job” (New York: Free Press, 1988); B O’Keefe, “Battle-tested: How a Decade of War Has Created a New Generation of Elite Business Leaders,” Fortune 161 (4): 107–108; N Haston (2/26/09), “Military veterans: Ready to serve in the workplace,” BusinessWeek Online, Accessed at: http://www.businessweek.com/bwdaily/dnflash/content/ feb2009/db2009 90225_702876.htm Accessed on: 5/29/2010 legitimate power is somewhat reduced For example, take a medium-sized firm where the CEO decides to appoint a close relative with little knowledge of the business to an executive-level position that in the past was filled by employees who worked their way up through the ranks In this case, subordinates may not acknowledge that the relative has a right to the formal power that would normally be associated with the position, and thus they might not respond to requests rapidly and enthusiastically This would probably be especially the case in many Western work situations, but perhaps not as much so in Asian cultures, where family connections are viewed as more appropriate for determining who should occupy high-level positions In essence, though, in most organizational settings, formal authority represents power, but it definitely is not unlimited power 480 GLOSSARY command group (also known as a supervisory group) critical incident a specific incident in which the em- a group whose members consist of a supervisor or manager and all those who report to that person ployee’s behavior and performance were above or below expectations cross-border acquisition the acquisition of a local firm made by a foreign firm to enter a new international market cross-functional job rotation an arrangement in which an employee has an opportunity to work in different functional areas and gain additional expertise cross-functional team a work group composed of employees from different departments, such as finance, marketing, operations, and human resources, to work together in problem solving cultural context the degree to which a situation influences behavior or perception of the appropriateness of behaviors cultural distance the overall difference between two cultures’ basic characteristics such as language, level of economic development, and traditions and customs culture a learned set of assumptions, values, and beliefs that members of a group have accepted and that affect human behavior customer segment a group of customers who have similar preferences or place similar value on product features decentralized organization an organization in which decisionmaking authority is pushed down to the lowest-possible level decision making a process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity decoding the act of interpreting a message Delphi technique a decision-making technique that never allows decision participants to meet face-to-face but identifies a problem and offers solutions using a questionnaire design capacity the maximum capacity at which a facility can run under ideal conditions designing for manufacturing (DFM) designing products for ease of manufacturing so that quality is built into the design process devil’s advocate a group member whose role is to challenge the majority position dialectical inquiry a process to improve decision making by assigning a group member (or members) the role of questioning the underlying assumptions associated with the formulation of the problem differentiation the extent to which tasks are divided into subtasks and performed by individuals with specialized skills differentiation strategy a set of actions under which a firm works to gain competitive advantage by making a product or service different from those of its competitors directing the process of attempting to influence other people to attain an organization’s objectives distributive justice the equitable distribution of rewards and punishment, based on performance division of labor the division of work so that each person performs a limited number of tasks (specialized tasks); first used early in the Industrial Revolution commitment (clan) control an approach to tactical control that emphasizes consensus and shared responsibility for meeting goals committee a group that is either permanent or temporary (ad hoc), whose members meet only occasionally and otherwise report to different permanent supervisors in an organization’s structure communication the process of transferring information, mean- ing, and understanding from sender to receiver communication network an identifiable pattern of communi- cation within and between organizations, whether using formal or informal channels compensatory justice if distributive and procedural justice fail, those hurt by the inequitable distribution of rewards are compensated competitive advantage the ability of a firm to win consis- tently over the long term in a competitive situation computer-aided design (CAD)/computer-aided engineering (CAE) computerized systems used to design new products, make modifications to existing ones, and test prototypes computer-aided manufacturing (CAM) computerized systems used to direct manufacturing processes concentration of effect the extent to which consequences are focused on a few individuals or dispersed across many concurrent control a type of operational control that evaluates the conversion of inputs to outputs while it is happening conformity close adherence to the group’s norms by the indi- vidual members content theory a motivation theory that focuses on what needs a person is trying to satisfy and on what features of the work environment seem to satisfy those needs contingency approach a management theory that emphasizes matching a structured or flexible management style to the organization’s environment, its technology, the tasks to be performed, and the types of employees contingency plan a plan that identifies key factors that could affect the desired results and specifies what actions will be taken if key events change continuous process improvement incremental and break- through improvements in the way an organization does business; also known as business process reengineering and kaizen control regulation of activities and behaviors within organiza- tions; adjustment or conformity to specifications or objectives controlling regulating the work of those for whom a manager is responsible core competence an interrelated set of activities that can deliver competitive advantage in the short term and into the future cost leadership strategy a strategy in which a firm is the low- est-cost producer of a product or provider of a service while charging only slightly less than industry average prices GLOSSARY downward communication messages sent from higher orga- nizational levels to lower levels 481 flat organization structure an organizational structure that has relatively few layers in its hierarchy dual-career couple a couple in which both partners work full- flexible manufacturing system (FMS) automation of a produc- time in professional, managerial, or administrative jobs economic order quantity (EOQ) a mathematical formula managers use to determine the most economical quantity of products to order, to minimize total inventory costs tion line by controlling and guiding all machinery by computer effective capacity the percent of design capacity a facility is actually expected to maintain effective leadership influence that assists a group or organization to meet its goals and objectives and perform successfully efficiency perspective the concept that a manager’s responsibility is to maximize profits for the owners of the business emotional intelligence an awareness of others’ feelings and a sensitivity to one’s own emotions and the ability to control them empathy the ability to put yourself in someone else’s place and to understand his or her feelings, situations, and motives empowerment the sharing of power with others, especially by those with high amounts of position power encoding the act of constructing a message entry barrier an obstacle that makes it difficult for firms to enter a particular type of business (industry) environmental complexity the breadth and depth of differences and similarities in an organization’s external environment equity theory a motivation theory proposing that individuals will compare their circumstances to those of others and that such comparisons may motivate certain kinds of behavior escalating commitment the tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant evidence emerges indicating that the original decision was incorrect ethical dilemma having to make a choice between two competing but arguably valid options ethical lapse a decision that is contrary to an individual’s stated beliefs and policies of the company ethnocentrism the belief in the superiority and importance of one’s own group expectancy theory a motivation theory that focuses on the thought processes people use when choosing among alternative courses of action with their anticipated consequences expense budget a budget that includes all primary activities on which a unit or organization plans to spend money and the amount allocated for the upcoming year expert power a type of personal power based on specialized knowledge not readily available to many people exporting manufacturing products in a firm’s home country and shipping them to a foreign market externality an indirect or unintended consequence imposed on society that may not be understood or anticipated extinction the absence of positive consequences for behavior, lessening the likelihood of that behavior in the future focus group a small group involved in intense discussions of the positive and negative features of products or services focus strategy a set of actions that targets a particular market segment; may be a focused cost leadership strategy or a focused differentiation strategy focused differentiation strategy a strategy to gain a compet- itive advantage by making a product or service different from those of your competitors force field analysis uses the concept of equilibrium, a condition that occurs when the forces for change, the “driving forces,” are balanced by forces opposing change, the “restraining forces,” and results in a relatively steady state Foreign Corrupt Practices Act (FCPA) a law prohibiting employees of U.S firms from corrupting the actions of foreign officials, politicians, or candidates for office formal communication channel a communication route au- thorized, planned, and regulated by the organization and directly connected to its official structure formal group a group that is designated, created, and sanctioned by the organization to carry out its basic work and fulfill its overall mission formalization the official and defined structures and systems related to decision making, communication, and control in an organization formulation a process that involves identifying a problem or opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affecting the problem or opportunity frame of reference an existing set of attitudes that provides a quick way to interpret complex messages functions of management basic elements of management as originally identified by Henri Fayol, consisting of planning, organizing, command, coordination, and control Gantt chart a nonmathematical graphical representation of a project; used by managers to help monitor a project’s progress gatekeeper an individual at the communication interface between separate organizations or between different units within an organization gender focus the extent to which people in a country value masculine or feminine traits general environment the sum total of the sociocultural, tech- nological, economic, political-legal, and global forces that can influence the effectiveness of an organization’s strategy glass ceiling an invisible barrier that prevents women from promotion to the highest executive ranks global approach integrating the firm’s activities on a coordi- nated, worldwide basis global mind-set a set of cognitive attributes that allows an individual (e.g., manager) to influence individuals, groups, and organizations from diverse sociocultural and institutional environments 482 GLOSSARY globalization the flow of goods and services, capital (money), and knowledge across country borders globally focused organization an organization that invests the primary authority for major strategic decisions in the home office goal-setting theory a belief proposing that human action is directed by conscious goals and intentions Gresham’s law of planning the tendency for managers to let programmed activities overshadow nonprogrammed activities group a set of people, limited in number (usually from to 20), who have some degree of mutual interaction and shared objectives informal group a group whose members interact voluntarily informal organization the unofficial but influential means of communication, decision making, and control that are part of the habitual way things get done in an organization in-group the group to which an individual belongs institutional environment the country’s rules, policies, and enforcement processes that influence individuals’ and organizations’ behaviors that operate within the country boundaries institutional force a rule, policy, or enforcement process that influences individuals’ and organizations’ behaviors within a country’s borders integrated differentiation cost leadership strategy a set of among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action actions designed to differentiate the firm’s product in the marketplace while simultaneously maintaining a low-cost position relative to its competitors Hawthorne studies a series of research studies at the integration the extent to which various parts of an organiza- groupthink a mode of thinking in which pursuit of agreement Hawthorne plant of the Western Electric Company that focused a spotlight on the importance of the human factor in productivity Hersey and Blanchard’s situational leadership model a model proposing that different types of appropriate leadership are contingent on some other variable, in this case, followers’ readiness to learn new tasks heuristic a rule that guides the search for alternatives into areas that have a high probability for yielding success high-context culture a culture in which people pay close attention to the situation and its various elements human relations approach approach springing from the find- ings of the Hawthorne studies that focused on the importance of relationships among people in the workplace tion cooperate and interact with each other integrative approaches recent approaches to management that include systems theory and contingency approaches and emphasize a consideration of a wide range of factors interdependence the degree to which one unit or one person depends on another to accomplish a task interest in negotiation, a person’s or group’s concern or desire—in other words, what the person or group wants intergroup conflict differences that occur between groups intervention a set of structured activities or action steps designed to improve an organization intragroup conflict differences that occur within groups intuitive decision making the primarily subconscious process human resource policies and procedures a type of tactical of identifying a decision and selecting a preferred alternative control based on the organization’s overall approach to utilizing its human resources job analysis determination of the scope and depth of jobs and human resources approach approach involving a basic belief that people possess and want to make greater use of their talents and capabilities and that if allowed to so, performance and satisfaction will increase incentive plans a system that ties some compensation to performance the requisite skills, abilities, and knowledge that people need to perform their jobs successfully job characteristics model an approach that focuses on the motivational attributes of jobs by emphasizing three sets of variables: core job characteristics, critical psychological states, and outcomes job design the structuring or restructuring of key job components incremental budgeting approach a budgeting approach job enrichment increasing the complexity of a job to provide whereby managers use the approved budget of the previous year and then present arguments for why the upcoming year’s budget should be more or less a greater sense of responsibility, accomplishment, and achievement individualism the extent to which people’s identities are self- oriented and people are expected to take care of themselves and their immediate families industry and competitor forces the five environmental forces job posting an internal recruiting method in which a job, its pay, level, description, and qualifications are posted or announced to all current employees job sharing situation in which two people share the same job by each working part-time (also known as Porter’s Five Forces) that can significantly influence the performance of organizations in an industry justice approach focuses on how equitably the costs and influence tactic a specific behavior used to affect the behavior just-in-time (JIT) system an inventory management and con- and attitudes of other people informal communication channel a communication route that is not pre-specified by the organization but that develops through typical and customary activities of people at work benefits of actions are distributed trol system whose objective is to reduce waste throughout the production and delivery of a product or service; in manufacturing, also known as lean production or valueadded manufacturing GLOSSARY lateral communication messages sent across essentially equivalent levels of an organization 483 mission statement a statement that articulates the funda- need to generate a spirit of cooperation between managers and their subordinates with a focus on the authority (based on a person’s knowledge and experience) that seems appropriate to the circumstances mental purpose of the organization; often contains several components moral intensity the degree to which people see an issue as an ethical one moral rights approach focuses on examination of the moral standing of actions independent of their consequences leading coalition a group of supporters who are favorably motivation a set of forces that energize, direct, and sustain law of the situation Mary Parker Follett’s emphasis on the inclined toward change and can influence others toward change leader-member exchange (LMX) theory a belief proposing behavior multiple advocacy a process to improve decision making by of position power granted to a person by the organization assigning several group members to represent the opinions of various constituencies that might have an interest in the decision multipoint competition strategy a set of actions that involves competing with firms across markets by using strengths in one market to overcome weaknesses in another market liaison an individual or unit designated to act as a “bridge” or negative reinforcement an undesirable consequence that, by that leaders develop different levels of relationships with different subordinates, and that the quality of these individual relationships affects the subordinate’s behavior legitimate power (also known as formal authority) a type connection between two or more areas of a company licensing the process of a company arranging for a local firm in the new market to manufacture and distribute its product line of authority specifying who reports to whom local approach differentiating the firm’s activities country by country low-context culture a culture in which contextual variables have much less impact on the determination of appropriate behaviors magnitude of the consequences the anticipated level of im- pact of the outcome of a given action management the process of assembling and using sets of re- sources in a goal-directed manner to accomplish tasks in an organizational setting management science (operations research) quantitative or mathematical approaches to managerial problems, especially those requiring specific decisions managerial ethics the study of morality and standards of busi- ness conduct Maslow’s need hierarchy theory a set of beliefs proposing that people will first attempt to fulfill basic needs, such as physiological and safety needs, before making efforts to satisfy higher-order needs, such as social and esteem needs materials requirement planning (MRP) a sophisticated computer system, derived from the master production schedule and an inventory database, whose output provides schedules that identify the required raw materials, parts, and assemblies needed during each specified time period mechanistic approach highly structured traditional manage- ment approach, which may be better suited to stable external environments, highly repetitive tasks, and employees with limited technical or professional expertise media richness a communication medium’s capacity to facili- tate shared meaning medium the method or means of transmitting a message; plural is media being removed or avoided following a behavior, increases the likelihood of that behavior being repeated in the future negotiation the process of conferring to arrive at an agreement between different parties, each with its own interests and preferences neoclassical management theory thinking about organized work activity and how to manage that drew from classical theory in its emphasis on study and analysis of the workplace but expanded to include situational and social considerations (i.e., communication and cooperation) network structure the formal or informal relationships among units or organizations (for example, along the firm’s value chain) networking a process of developing regular patterns of communication with particular individuals or groups to send and receive information neutralizer of leadership any aspect of an organization or work situation that can hinder the exercise of leadership noise interference with the transmission or decoding of a message nominal group technique a process of having group members record their proposed solutions, summarize all proposed solutions, and independently rank solutions until a clearly favored solution emerges nonprogrammed decision a decision about a problem that is either poorly defined or novel norm a standard, shared by a group, that guides the behavior of its individual members objective an end state or target that a company’s managers aim to achieve open system a system in which there is interaction of the elements with the outside environment operational control assessment and regulation of the specific activities and methods an organization uses to produce goods and services operational plan a plan that translates tactical plans into specific goals and actions for small units of the organization and focuses on the near term 484 GLOSSARY operations management a specialized field of management physical force an element of a country’s infrastructure, such associated with the conversion or transformation of resources into products and services as its roads, telecommunications, air links, or deepwater harbors, that can affect existing and potential business operations planning a decision-making process that focuses on the future of an organization and how it will achieve its goals opportunity a chance to achieve a more desirable state than the current one organic approach a flexible, employee-centered management approach that seems better suited for rapidly changing and complex environments, nonrepetitive tasks, and employees with considerable training and competence organizational chart a graphic illustration of the relationships plan the means by which managers hope to hit a desired target pooled interdependence the collective contribution of several largely independent groups to a common output among a firm’s units and the lines of authority among supervisors and subordinates position in negotiation, a person’s or group’s stance regarding organizational design the process of assessing an organiza- position power power based on a person’s position and rank tion’s strategy and environmental demands and then determining the appropriate organizational structures organizational development (OD) approach to organiza- tional change that has a strong behavioral and people orientation, emphasizing planned, strategic, long-range efforts focusing on people and their interrelationships in organizations organizational leadership an interpersonal process that involves attempts to influence other people in attaining organizational goals organizational learning exhibited by an organization that is skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights organizational renewal a concept of organizational change that proposes a goal of flexibility and capability for continual change organizational structure the sum of the ways an organization divides its labor into distinct tasks and then coordinates them organization an interconnected set of individuals and groups who attempt to accomplish common goals through differentiated functions and their coordination organizing systematically integrating resources to accomplish tasks outsourcing the practice of contracting out a significant activ- ity within the organization to an independent party path-goal theory of leadership a contingency theory of leadership that focuses on the leader’s role in increasing subordinate satisfaction and effort by increasing personal payoffs for goal attainment and making the path to these payoffs easier pay structure a range of pay for a particular position or classi- fication of positions perception a way one sees a situation based on experiences, personality, and current needs perceptual distortion the act of highlighting the positive features of an implicit favorite over an alternative personal power power based on a person’s individual characteristics PERT/CPM program evaluation and review technique (PERT)/ critical path method (CPM) is a technique for scheduling and controlling large, complex projects their interests in an organization positive reinforcement a desirable consequence that, by occurring or being supplied following a behavior, increases the likelihood of that behavior being repeated in the future postcontrol a type of operational control that checks quality after production of goods or services outputs power the capacity or ability to influence power distance the extent to which people accept power and authority differences among people precontrol a type of operational control that focuses on the quality, quantity, and characteristics of the inputs into the production process primary activity an activity that is directly involved in the creation of a product or service, getting it into the hands of the customer, and keeping it there probability of effect the moral intensity of an issue rises and falls depending on how likely people think the consequences are problem a gap between existing and desired performance procedural justice ensuring that those affected by managerial decisions consent to the decision-making process and that the process is administered impartially process conflict a difference of opinion about the procedures a group should use to achieve its goals process cost the increasing cost of coordination as group size increases process redesign (reengineering) involves a fundamental redesign of business processes to achieve dramatic improvements process theory a motivation theory dealing with the way different variables combine to influence the amount of effort people put forth productivity measurement of how well an organization uses its inputs in producing its outputs profit center a unit or product line whose related expenses are deducted from the revenue it generates programmed decision a standard response to a simple or routine problem project/task force a temporary group put together by an organization for a particular purpose GLOSSARY proposed budget a budget that outlines how much money an organization needs; submitted to a superior or budget review committee prospective rationality a belief that future courses of action are rational and correct proximity the physical, psychological, and emotional closeness the decision maker feels to those affected by the decision punishment an undesirable consequence given following a behavior to decrease the likelihood that behavior will be repeated quality the reliability, durability, serviceability, and dependabil- ity of products and services; also defined as fitness for use rational model (classical model) a seven-step model of deci- sion making that represents the earliest attempt to model decision processes reciprocal interdependence the dependence of two or more groups on one another for inputs reengineering fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, or speed referent power a type of personal power gained when people are attracted to, or identify with, that person region–country focus a situation in which primary authority for determining competitive strategy rests with the management of the international subsidiary based in a region of the world or a specific country relationship conflict interpersonal differences among group members retrospective decision model (implicit favorite model) a decision-making model that focuses on how decision makers attempt to rationalize their choices after they are made reward power a type of position power based on a person’s authority to distribute rewards role ambiguity a situation in which the expected behaviors for a group member are not clearly defined role conflict a situation in which a member of a group faces two or more contrasting sets of expectations satisficing a decision process that results in an acceptable course of action among several alternatives rather than pushing to achieve the altogether best solution scientific management an approach developed by Frederick Winslow Taylor focusing on basic principles for improving performance, such as studying jobs by usng objective measurements in order to determine the one best way, selecting the best persons for the job, training them in the most efficient methods, and providing sufficient monetary incentive to those performing the work selective perception the process of screening out some parts of an intended message because they contradict our beliefs or desires self-efficacy an individual’s confidence about his or her abili- ties to mobilize motivation, cognitive resources, and courses of action needed to successfully execute a specific task within a given context 485 self-managing-work group (also known as an autonomous work group) a group that has no formally appointed super- visor but whose members coordinate their organizational work as if they all reported to the same formally appointed supervisor; members usually appoint their own informal team leader sequential interdependence a relationship in which one group’s outputs become the inputs of another group simulation a set of techniques in which various potential combinations of variables can be mathematically manipulated in advance of actual decisions to determine the possible effects of changes in one or more variables social cognitive theory a process theory that, in part, describes how to increase an individual’s sense of self-efficacy, thus increasing motivation social consensus the extent to which members of a society agree that an act is either good or bad social intelligence the ability to “read” other people and their intentions and adjust one’s own behavior in response social loafing the phenomenon of reduced effort expended per person in a large group sociocultural force a force consisting primarily of the demographics and the cultural characteristics of the societies in which an organization operates solution a process involving generating alternatives, selecting the preferred solution, and implementing the decided course of action span of control the number of employees reporting to a given supervisor stakeholder an individual or group who haa an interest in and is affected by the actions of an organization standard operating procedure (SOP) established procedure for action used for programmed decisions that specifies exactly what should be done standard a performance target statistical process control (SPC) a quantitative tool to aid in making decisions concerning how well a process is performing status the standing or prestige that a person has in a group, which can be based on a number of factors such as perceived leadership abilities, seniority, or special skills stereotyping the tendency to oversimplify and generalize about groups of people strategic alliance a cooperative arrangement between two firms in which they agree to share resources to accomplish a mutually desirable goal strategic control assessment and regulation of how the organization as a whole fits its external environment and meets its long-range objectives and goals strategic corporate social responsibility perspective a threecriteria model that can help managers focus on social areas where there is the highest possibility of creating shared value for the business and society strategic objective an objective that turns the strategic intent and mission of a firm into concrete and measurable goals 486 GLOSSARY strategic plan a plan that focuses on the broad future of the total quality management (TQM) a management approach organization and incorporates both external environmental demands and internal resources into managers’ actions strategic scope the size, depth, or breadth of a firm’s strategy or focus strategic vision a view of the firm over the long term that describes what it should achieve in the future structured debate a process to improve problem formulation that includes the processes of devil’s advocate, multiple advocacy, and dialectical inquiry structured interview one in which interviewers ask a standard set of questions of all candidates about qualifications and capabilities related to job performance subjectively expected utility (SEU) model a model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome substitution the ability to fulfill a customer’s need by alternative means superior value characteristic of a product or service whose value to customers is greater than that of a competitor’s product or service supervisory structure a type of tactical control based on reporting levels in an organization support activitiies activities that facilitates the creation of a product or service and its transfer to the customer swift trust the rapid development of trust in teams with positive and reciprocal communications about the team’s task activities SWOT analysis an analysis of the firm’s strengths, weaknesses, opportunities, and threats (SWOT) to its continued operation system an interconnected set of elements that have orderly interactions that form a unitary whole systems theory the processes involved in how “inputs” are transformed by the organization into “outputs” tactical control assessment and regulation of the day-today functions of the organization and its major units in the implementation of its strategy tactical plan a plan that translates a strategic plan into specific goals for specific parts of the organization tall organization structure a structure that has multiple layers of hierarchy or significant vertical differentiation task conflict a difference of opinion about ideas and courses of action for addressing the issues facing a group task differentiation differentiation by what employees team a type of group that has additional characteristics: a high degree of interdependent, coordinated interaction and a strong sense of members’ personal responsibility for achieving specified group outcomes temporal immediacy a function of the interval between the time the action occurs and the onset of its consequences T-group a group of individuals participating in organizational development sessions away from the workplace; also called a basic skills training group and philosophy that involves a commitment from all levels of employees to continually strive to make improvements and satisfy customers trait a relatively enduring characteristic of a person transactional leadership leadership that focuses on motivating followers’ self-interests by exchanging rewards for their compliance; emphasizes having subordinates implement procedures correctly and make needed, but relatively routine, changes transformational leadership leadership that motivates fol- lowers to ignore self-interests and work for the larger good of the organization to achieve significant accomplishments; emphasizes articulating a vision that will convince subordinates to make major changes transnational organization an organization that strives to be simultaneously centralized and decentralized two-factor theory a motivation theory that focuses on the presumed different effects of intrinsic job factors (motivation) and extrinsic situational factors (hygiene factors) uncertainty the extent to which organizations cannot accurately forecast future input, throughput, and output factors uncertainty avoidance the extent to which a culture needs clarity or tolerates ambiguity unity of command the notion that an employee should have one and only one boss universal approach choosing a course of action that you believe can apply to all people under all situations upward communication messages sent from lower organizational levels to higher levels utilitarian approach focuses on the consequences of an action valid selection technique a screening process that differentiates those who would be successful in a job from those who would not value chain the set of key activities that directly produce or support the production of a firm’s products and service offered to customers values fundamentally important behaviors, activities, and outcomes virtual team a team that relies on electronically mediated communication whistle-blower an employee who discloses illegal or unethical conduct on the part of others in the organization wholly owned subsidiary a direct investment that establishes a business in a foreign market in which the local firm owns and controls 100 percent of the business work centrality the degree of general importance that working has in the life of an individual at a point in time work standard the amount of time it takes a trained employee to complete a specific activity or process zero-based budgeting approach a budgeting approach that assumes that all funding allocations must be justified from zero each year Name Index A Acton, Lord, 210 Adam, Scott, 47 Adams, Stacy, 248–249 Akre, Jane, 49 Akst, D., 36 Alderfer, Clay, 244–245 Alderson, Jim, 49 Alexander the Great, 303 Almer, Jeff, 38 Almer, Shirley Mae, 38 Andel, Mark van, 334 Anderson, Pat, 28 Andrews, Kenneth, 86 Anthony, W P., 180, 183 Argyris, Chris, 473 Armstrong, Lance, 282 Artley, J B., 260 Avery, Clarence, 280 B Babbage, Charles, 455, 460 Babcock, Havilah, 163 Balfour, F., 91 Bandura, Albert, 252–253 Barbaro, M., 12, 102 Barbierri, C., 175–176 Barnard, Chester, 10, 470–471, 477 Bartlett, Christopher, 70 Basquiat, Jean-Michel, Bazerman, M H., 254 Beatty, S G., 106 Beaussart, Jean-Jacques, 167, 194 Berardino, Joseph F., 49 Bettenhausen, Kenneth, 284 Black, J Stewart, 251, 347 Black, Robert, 221 Blackburn, R S., 289 Blackwell, Stephanie, 38 Blake, Frank, 12 Blitz, A., 157–158 Bogoslaw, D., 141 Borgatti, S., 157–158 Boudreau, J., 91 Bourgeois, L J., 348–349 Bourke, J., 24 Bours, Jereon, 280 Boyd, Jim, 383–384 Boyle, M., 7, 43–44, 100 Brady, D., 309 Brannick, M T., 290 Branson, Richard, 218 Brin, Sergei, 280 Brodbeck, F C., 209 Broughten, Nathaniel, 207 Brown, T., 121 Browning, G., 309 Bryan, Tom, 367 Bryant, A., 121 Buffett, Warren, 223 Burkhardt, V., 356 Burkner, Hans-Paul, 279 Burns, James M., 222 Burns, Ursula, 18 C Campbell, Greg, 334 Campion, M A., 281 Cannon-Bowers, J A., 290 Carter, Bradley S., 387, 409 Casey, James, 334 Casselman, B., 413–414 Castro, Brian, 184 Chadhury, Chetan, 74 Chambers, Bridgette, 303, 312, 318, 324 Chapman, E., 43–44 Chatterjee, B., 404–405 Chazan, G., 413–414 Chen, A., 121 Chetan, Chadhury, 58 Chiang, O J., 115 Chin, S., 77 Ching (king), 458 Chou, Duke of, 458 Churchill, Winston, 218 Clark, Charles B., 163 Clark, D., 115 Clothier, M., 163–164 Cole, C L., 77 Collela, A., 12 Collins, G., 389–390 Colvin, G., 67, 102 Combs, W., 289 Conlin, E., 314 Cook, David P., 106 Copely, F B., 461 Cosgriff, G., 50 Costonis, M A., 157–158 Cotsakos, Christos, 218–219 Counsell, A., 24 Cranin, Johnathan, 280 Creighton, Mandell, 210 Creswell, J., 12, 102 Crumpacker, J M., 260 Crumpacker, M., 260 Cyert, Richard, 474 Cyran, R., 115 D Dannen, C., 106 Davenport, Thomas, 303 Dawly, H., 163–164 Deans, David, 351–352 Dennis, G., 67 DePamphilis, D M., Diaz, S., 106 Dickson, W J., 472 Dorfman, P., 209 Drucker, Peter, 461 Ducasse, Alain, 276 du Pont, Pierre, 453 E Edison, Thomas, 280 Einhorn, B., 91 Eisenhardt, Kathleen, 348–349 Elashmawi, Farid, 258 Ellison, Marvin, 102 Engbe, D., 282 Erlich, Clifford, 189 Ewasyshyn, Frank, 376 E Yin, 458 F Fannin, R., 67 Faucon, B., 413–414 Fayol, Henri, 465–466 Fenn, D., 207 Ferdows, K., 370 Fichte, John, 470 Fiedler, Fred, 226, 228 Follet, Mary Parker, 10, 455, 469–471, 477 Fontenote, Greg, 343 Ford, Henry, 280, 455 Forest, S A., 163–164 Forman, D., 356 Fortt, J., 115 Foust, D., 24 Franklin, Benjamin, 454 Franklin, Martin, 242 Freire, Luiz, 133–134, 137, 148, 159 Friedman, Milton, 36, 37 Friedman, Thomas, 59 Frohman, Dov, 356 Fung, B., 157–158 Furst, S A., 289 G Galinsky, A D., 254 Gandhi, Mahatma, 218 Gantt, Henry L., 371, 464 Gardner, D., 100 Garnick, R., 157–158 Gates, Bill, 19, 133, 167, 207, 224 Geidi, S., 141 Gentile, Jim, 365 Gerhart, Barry, 192 Ghoshal, Sumantra, 70 Ghosn, Carlos, 70, 73 Gibner, F., Jr., 316 Gilbreth, Frank, 10, 455, 464, 477 Gilbreth, Lillian, 10, 455, 464, 469, 477 Gjemre, Ken, 28 Goedtel, Fred, 376 Gold, R., 413–414 Goodnight, Jim, 243 Goudy, Jack and John, 314 Goulden, D., 24 Graen, G B., 225 Graham, J., 322 Grant, Robert M., 94 Gray, Taylor Ridout, 205, 229 Green, Bill, 226, 227 Greenberg, A., 115 Grof, Natalie, 3, 21 Grover, R., 106 Grow, B., 102 Guest, Dick, 124 Gunther, M., 141 Gupta, V., 209 H Hackman, J Richard, 247–248, 292, 293 Hadfield, W., 404–405 Hall, E., 71 Hall, K., 143 Hallam, G L., 294 Halvorson, B., 3–4, 10, 21 Hamel, G., 157–158 Hanges, P J., 209 Harper, Hill, 361 Harris, Philip R., 258 Harvey, William D., 198 Haston, N., 212 Hayes, Elizabeth, 240, 253, 261 Heath, N., 67 Herzberg, Frederick, 10, 243, 246–247 Heskett, John, 91 Hickman, J., 189–190 Hincha-Ownby, M., 102 Hirschhorn, Michael, 28 Hitler, Adolf, 219 Hitt, M A., 12, 63 Hobbs, Patti, 334 Hof, R., 157–158 Hofstede, Geert, 63 Hollenbeck, John R., 192 Holmes, R M., 63 Holthaus, John, 348 House, Robert, J., 63–64, 209, 228 Howard, R., 356 Hymowitz, C., 227, 389–390 I Iddeking, C H., 281 Immelt, Jeffrey, 112, 212 Irwin, Richard D., 380 J Jackson, Michelle, 361, 380–381 Jackson, Steve, 383–384 Jago, Arthur, 347 Janis, Irving, 341–343 Jannarone, J., 100 Javidan, M., 209 Jermier, J M., 229 Jobs, Steve, 8, 19–20, 31, 58, 171, 218 Johnson, 369 Julich, Bobby, 282 K Kachi, H., 143 Kacmar, K M., 180, 183 Kahn, D., 115 Kanaga, K., 272 Kane, Y I., 143 Kant, Immanuel, 31–32 Karchung, Tsokye Tsomo, 59 Kelleher, Herb, 218 Kelly, Sue, 38 Kennedy, John F., 218 Kerr, Steven, 229, 254–255 Kiley, D., 370 Kim, Charlie, 278 Kimberly, John A., 163 Kincaid, Matt, 111, 122, 127 King, Martin Luther, Jr., 218 King, N., 413–414 Kirkham, C., 413–414 Kirkpatrick, S A., 217 Klein, Donna, 189 Knight, Phil, 35 Knod, Edward M., 380 Kordestani, Omid, 280 Kossler, M E., 272 Kotchian, Carl, 49 Kotter, John P., 91 Krajewski, Lee J., 383–384 Krisher, Tom, 376 Krishna, J., Kuzak, Derrick, 121 L Lafley, A G., 72 Landy, H., 50 Lasorda, Tommy, 476 Laughlin, L S., 115 Lay, Ken, 49 Leak, B., 334 Lee, G., 141 Lee, Thong, 189 Lewis, Kurt, 472 Lewis, M., 370 Lieberman, S., 73 Likert, Rensis, 456, 473 Lilienthal, David, 472 Lindner, M., 102, 163–164 Linsday, G., 60 Livermore, D., 73 Locke, E A., 217 Lombardo, M M., 21, 212 Lord, Lurue, 332–333, 352 Lundeen, Tom, 38 M Machiavelli, Niccolo, 454, 458 Machuca, J A D., 370 Macon, M., 260 Maitland, A., 36 Majahan-Bansal, N., Malone, T W., 141 Maltby, E., 60 Mandela, Nelson, 218 487 488 NAME INDEX March, James G., 338, 456, 469, 474 Marcus, M., 115 Margulies, N., 347 Margulies, P., 356 Martin, Peter, 280 Martins, Luis L., 279 Maslow, Abraham, 10, 242–245, 456 Massie, J L., 469 Matsushita, Chairman, 143 Mattioli, Chase, 207 Maynard, M., 73 Mayo, Elton, 472 McAndrew, M B., 404–405 McCall, M W., Jr., 21, 212 McCallum, David, 460 McClelland, David, 243, 245–246 McClendon, Frederic, 38 McGirt, E., 207 McGregor, Douglas, 10, 473 McGregor, J., 12 McKnight, W., 404–405 McLaughlin, Grace B., 298, 327–328 Metcalf, H C., 470 Milani, J., 207 Miller, C., 12 Miller, Lee I., 348 Miller, T., 63 Milliken, Frances L., 279 Mintzberg, Henry, 13 Moger, Andrew, 389 Monahan, Sam, 383–384 Mooney, J D., 455, 467–468 Moorhead, Gregory, 342 Morales, A., 124 Morgeson, F P., 281 Morison, A M., 212 Mother Teresa, 218 Mouton, Jane, 221 Mueller, N., 198–199 Mulcahy, Anne, 7, Mumford, T V., 281 Munarriz, R A., 106 Murnighan, J Keith, 284 Murray, S., 24 N Nakamoto, M., 143 Nakamura, Kunio, 143 Napsha, J., 367 Nardelli, Bob, 11–12, 101–102 Neeleman, David, 351 Neff, J., 163–164 Nirel, L., 91 Noe, Raymond A., 192 Nuttall, C., 115 O O’Keefe, B., 172, 212 O’Keefe, K., Oldham, Greg, 247–248 Olson, E., 60 O’Neal, Ellen, 50 Ordonez, L D., 254 Ortiz, Stephen, 271, 294 Osawa, J., 143 Ostertag, Ronald, 77 Owen, Robert, 455, 460 P Packard, Ben, 40 Page, Larry, 280 Palfini, J., 280 Palmer, A., 348 Pareto, Vilfredo, 472 Parker, Mark, 35, 36 Patton, P., 100 Paul, D L., 289 Peacocke, S., 289 Perez-Pena, R., 67 Perrewé, P L., 180, 183 Perrin, R A., 404–405 Peterson, B., 351–352 Petraeus, David, 212 Pfeffer, Jeffrey, 214 Pignatelli, Nicolo, 53–54 Pinder, C C., 266–267 Pitt, D., 367 Politi, J., 102 Porter, Lyman W., 298, 327–328 Porter, Michael, 94, 101, 457 Power, D., 404–405 Prasad, S., 227 Prestmo, Tor, 339 Prichett, William F “Rick,” 82–83, 103 Prince, C., 290 Profit, Gary, 172 R Reeves, M., 289 Reiley, A C., 455, 467–468 Requejo, W H., 322 Rindova, V P., 458 Ritzman, Larry P., 383–384 Robarge, Randy, 48 Rockefeller, John D., 455 Roethlisberger, Fred, 472 Rosen, B., 289 Rosen, S., 71 Rosenbloom, S., Ross, Gregory, 339 S Salas, E., 290 Salkowitz, R., 157–158 Salmador, M P., 63 Sanchanta, M., 73 Sawbenbauer, Allen, 334 Schilling, John, 49 Schmidt, Eric, 280 Schonberger, Richard J., 380 Schrempp, Jurgen, 316 Schweitzer, M E., 254 Scott, M., 124 Seibel, Michael, 207 Seidner, Jennifer, 172 Shan, Ray, 141 Shanker, T., 172 Shattuck, Frank C., 163 Shenkar, O., 71 Sheth, Jagdish, 72 Shevlin, C., 24 Shivapriya, N., 67 Silva, J., 404–405 Simon, Bill, 172 Simon, Herbert, 337–338, 474 Simon, Ted, 383 Skilling, Jeff, 49 Skoll, Jeff, 315 Slania, J T., 348 Sloan, Alfred P., 10, 453, 455 Smith, Adam, 36–37, 454, 459 Smith, Fred, 24 Smith, R., 389–390 Snyder, J., 316 Soelberg, Peer, 338 Solley, S., 163–164 Sonnenfeld, Jeffrey, 207 Sorenson, Charles, 280 Starbuck, W H., 458 Stringer, Howard, 73, 140 Stuttgart, J R., 316 Sundeep, S., 91 Sun Tsu, 9, 454, 456–457 Sweetham, S., 309 Syeed, A., 367 T Talley, K., Tamny, J., 106 Tanni, Teruo, 143 Tata, Ratan, 223 Taylor, C., 106 Taylor, Fredrick W., 10, 455, 461–464, 468, 476, 477 Thomas, Joyce King, 280 Tichy, Noel, 172, 212 Timmons, H., 67 Toledo, Jaimie, 198 Tom, Carol, 102 Towne, Henry R., 460–461 Trebilcock, B., 404–405 Tulshyan, R., 73 U Uchitelle, L., 12 Uhl-Bien, M., 225 Urbina, I., 413–414 Urwick, L., 470 V van der Splinter, Steve, 339 Vascellaro, J E., 207 Vroom, Victor, 249–252, 347 W Wallace, A., 124 Wallace, Kim, 334 Walters, H., 121 Walton, Sam, 218 Wardin, A., 102 Watt, James, 459 Weber, Max, 218, 259, 456, 466–467, 472 Wee, H., 141 Weiss, T., 121 Welch, Jack, 20, 214, 303 Wernle, B., 316 Whitman, Meg, 272 Whyte, Fred, 43 Winfrey, Oprah, 218 Wolf, W B., 472 Wozniak, Steve, 19 Wren, Daniel, 459 Wright, Patrick M., 192 Wright, Sharon Anderson, 28, 50 Y Yetton, Phillip, 347 Yifei Li, 209–210 Yukl, G., 215, 223 Z Zuckerberg, Mark, 207 Subject Index A ABB, 149, 156–157 ABC analysis, 369 Above-average returns, 85 Accenture, 227 Accommodaters, 41–42 Accountability, 122, 278 Acquired needs theory, 243, 245–246, 266–267 Acquisitions, 67–68, 115 Action plans, 117, 121–122 Advertisements, 173 AES, 139–141 Affiliated Computer Services, 67 Affirmative action program, 191 Age Discrimination in Employment Act of 1967, 192 AIG, 28 Airbus, 153 Air Tractor, 60 Air Transport, 59 Albertson’s, 365 Alcatel-Lucent Technologies, 153 Alderfer’s needs hierarchies See ERG Theory Alliant Energy, 198–199 Alternatives stage, of classical (rational) model of decision making, 335–336 Altria Group, 66 Amazon.com, 98 American Airlines, 92, 398 American Cancer Society, 400 Americans with Disabilities Act of 1990, 192 America Online, Inc, 240, 261 Andersen Consulting, 227 Angola, 133–134 Anticipators, 42 Apple, 19–20, 31, 84, 92, 171, 419, 424 Applied behavior analysis programs, 256 Approved budget, 125 Arthur Andersen, 45, 49, 227 Art of War, The (Sun Tsu), 9, 454 Aspen Hills Inc., 38 Assembly line process, 373–374 Assessment centers, 177 Assets, 341 intangible, 167–168 AstraZeneca PLC, 48 Athens Insurance Center, 366 At-risk compensation, 185 AT&T, 10, 19–20, 471 Attitudes KSAs, 290 towards work, 259, 261 Aurora Products, 38 Authentic leadership, 223 Authentic leadership development theory, 223 Authority, 211, 467 line of, 137 Autonomous work group, 287 Autonomy, 247–248 Avaya, 151 B Baby Boomers, 260 Balanced scorecard, 405–406 Bank of America, 82, 121, 226 BARS See Behaviorally anchored rating scales Baxter Healthcare Corporation, 371 BBC, 220 Becton Dickinson, 145–146 Behavioral decision-making approach, 474 Behaviorally anchored rating scales (BARS), 183 Behavioral process orientation, 441 Behavior modification, 256 Benchmarking, 118 Benetton, 95, 153 Ben & Jerry’s Ice Cream, 226 BenQ of Taiwan, 379 Berkshire Hathaway, 223 Bernard Becker Medical Library, 245 Best Buy, 114 BFOQ See Bona fide occupational qualification Bharti Airtel, 68 Bhutan, 59 BIC, 152 Blockbuster, 99, 100, 106 Bloomingdale’s, 48 BMW, 83, 92 BNSF Railway, 178, 361, 380–381 Boeing, 135, 152, 153, 157 Bona fide occupational qualification (BFOQ), 191 Boston Consulting Group, 279 Boundary spanner, 136 Bounded rationality, 474 Bounded rationality model, of individual decision making, 337–338 BP PLC, 413–414 Brainstorming, 351 Break-even point, 398 Bribes, 49, 53–54 British Petroleum, 28 Broadband system, of pay structure, 184–185 Budgets, 124–125, 398–399 Bureaucratic control, 400–401 Burlington Northern Santa Fe Railway, 306, 380–381 Business level planning, 114–115, 116 C CA (Computer Associates), 407 CAD See Computer-aided design CAE See Computer-aided engineering Cafeteria-style plan, of benefits, 186 California Air Resources Board (CARB), 43 CAM See Computer-aided manufacturing Campbell Soup, 99–100 Capacity planning, 366–368 Capital expenditure budget, 124 CARB See California Air Resources Board Careerbuilder.com, 174 Career path, 186 Carrefour, 96 Caterpillar, 434–435 Cemex, 69, 98 Centralized organization, 140–142, 143 Cerberus Capital Management, 316 Change, 15, 187–188, 417 See also Organizational change evaluating outcomes of, 437–438 implementation choices for, 435–437 managing, 432–438 movement phase for, 428, 429, 430–432 organizational development approach to, 438, 440–441 overcoming resistance to, 430–432, 448 planned, specific approaches to, 438–443 planning/preparing for, 433–435 process of, 427–430 refreezing phase for, 428, 429–430, 432 shared values/culture and, 423, 425–426 staff and, 423, 426 strategy v., 423 structure v., 423–425 systems and, 423, 425 technology and, 423, 425, 448 unfreezing phase for, 428–429, 430 Change agent, 440 Charismatic authority, 467 Charismatic leader, 218–219 Chevrolet, 87 China, 61, 66, 91, 458 China Investment Corporation, 141 China MTV, 209–210 Chrysler, 83, 316, 376 Cisco, 60, 73, 115–116, 157, 369 Cisco Telepresence, 73 Citibank, 28, 82 Citicorp, 28, 193 Civil Rights Act of 1866 and 1871, 192 Civil Rights Act of 1964, 32 Civil Rights Act of 1991, 190, 192 Classical management theory, 464, 469 A C Reiley, 467–468 Henry Fayol, 465–466 impact of, 468 J D Mooney, 467–468 Max Weber, 466–467 neoclassical administrative theory v., 468–471 Classical (rational) model of decision making, 337 analyzing alternatives stage of, 335 developing objectives/criteria stage of, 333 generating alternatives stage of, 335 identifying decision situations stage of, 333 implementing decision stage of, 336 monitoring/evaluating results stage of, 336 selecting alternatives stage of, 335–336 Clorox, 365 Closed system, 475 Club Med, 142 CNOOC, 68 Coca-Cola, 89–90, 172, 311 Code of ethical conduct, 45–46 communication of, 47 implementation of, 47–48 managers’ examples and, 48–49 reward/recognition and, 48 training and, 47–48 whistle-blowers and, 48 Coercive power, 211, 213 Cognitive ability/complexity, 20, 252–253 Cognitive complexity, 337 Cognitive conflict, 291 Cognitive differentiation, 135 Cohesion (group), 285–286 Collaboration, 321 Collectivism, 64, 259 ComEd, 48 Command (supervisory) group, 272–273 Commercial Service, U.S., 60 Commitment, 126 escalating, 343–345 Commitment (clan) control, 401–402 Committees, 273, 274 Communication, 303, 434–435, 438, 458 See also Negotiation barriers to, 312–318 basic model of, 304 of code of ethical conduct, 47 cultural barriers to, 312, 315–318 formal channel of, 308, 310 generations v., 327–328 high/low cultural context and, 70–71, 312, 315, 317 informal channel of, 310 interpersonal barriers to, 312–313 listening skills for, 318–319 media of, 306–307 media richness in, 306–307 modes of, 304–306 nonverbal, 305–306, 313, 319 oral, 304–305 organizational context of, 307–312 organizational-level improvements in, 319–320 sending skills in, 319 skills improvement in, 318–320 Two J’s Auto Repair, 314 verbal mode of, 304–305 written mode of, 305, 319 Communication networks, 311–312 Comparison, equity theory and, 248–249 Compensation, 462, 466 benefits as, 185–186 broadband system for, 184–185 maximizing performance and, 184–186 payment as, 175–176, 184–185 rewards/motivation as, 186 Compensatory justice, 32 Competitive advantage, 102 substitution in, 85 superior value in, 83–85 Competitors environmental complexity and, 153 industry and competitor forces, 90–93 multipoint competition strategy, 101 Computer-aided design (CAD), 375 Computer-aided engineering (CAE), 375 Computer-aided manufacturing (CAM), 375 Computer Associates (CA), 407 Concentration of effect, moral intensity and, 34 Concurrent control, 402–403 Conflict See Group conflict Conformity, 285 Conmed, 369 Consideration-oriented behaviors, 220–221 Consultants, 101, 111, 127, 227, 279 Content theories acquired needs theory in, 245–246 job design and, 247–248 motivational theories, 241–248 need hierarchy theories in, 242–245 two-factor theory in, 243, 246–247 Continental Airlines, 100 Contingency approach, to management, 476 Contingency model, of participative decision making, 345–347 Contingency plan, 118 Contingency theory, 226–227 Continuous flow production, 373 Continuous process improvement, 364–365 Control, 13, 364–365 See also Tactical control application amount of, 406–407 basic process of, 390–394 effectiveness factors for, 403–409 establishing standards for, 390–391 favorable cost-benefit ratio, 408–409 flexibility and, 408 focus of, 405–406 information quality and, 406–408 managerial function of, 13, 388–390 performance measurement for, 391–392 performance v standards and, 392–393 precontrol, 402 489 490 SUBJECT INDEX Control (Continued) results evaluation/action and, 393–394 RFID, 404–405 scope of, in organization, 394–403 span of, 137–138, 139 Controlling, 13 Coordinative principle, of management, 468 Coping experience, leadership and, 212 Core competence, 96 Corning, 89, 283 Corporate culture, 68, 73, 77, 258, 289, 315–316, 424 Corporate level planning, 113–114, 116 Cost leadership strategy, 97–98 Critical events, group norms and, 284 Critical incident, 184 Cross-border acquisition, 67–68 Cross-functional job rotation, 186 Cross-functional/new product (service) groups, 287–288 Cross-functional team, 346 Cross-national negotiation process concessions/agreement, 323 information exchange, 323 persuasion attempts, 323 planning/preparation, 323 relationship building between parties, 323 Cross-national negotiation skills, 321 key success characteristics for, 322 negotiation process in, 323 physical arrangements in, 322 team composition for, 322–323 Cultural barriers, to communication, 312, 315–318 Cultural context, 70–71, 312, 315, 317 Cultural distance, 317–318 Cultural intelligence, 73 Culture(s), 30, 63 collectivism and, 64 corporate culture, 68, 73, 77, 258, 289, 315–316, 424 cultural dimensions, 63–65 gender focus and, 64 global mind-set and, 72 high-context, 70–71, 312, 315, 317 individualism and, 64 leadership v., 208–210, 217 low-context, 70–71, 312, 315, 317 managing across, 70–74 motivation and, 251, 258 multicultural team management, 72 need hierarchy theory v., 244 power distance and, 63 sociocultural forces, 87–88, 90 uncertainty avoidance and, 63–64 values v., 251, 258–259 virtual teams and, 72 Customer segment, 99 Customer service, 169–170 Customer structure, 146–147 D Daewoo, 83 DaimlerBenz, 83, 316 DaimlerChrysler, 316 Dart Transit Company, 390 Decentralized organization, 140–143 Decisional roles (managerial) disturbance handler role, 16 entrepreneurial role, 15–16 negotiator role, 16 resource allocator role, 16 Decision making, 332–333 See also Classical (rational) model of decision making; Ethical decision making; Individual decision making cross-functional team for, 346 effectiveness of, 340 escalating commitment and, 343–345 fast, 348–349, 356 improvement strategies for, 349–352 improving problem formation in, 349–350 improving problem-solution process in, 351–352 law firms and, 348 participative, contingency model of, 345–347 retrospective decision model of, 338–339 technology’s role in, 352 in war, 356 Decision making (group), 341–343 Decision-making approaches, to management, 474–475 Decisions, types of, 339–340 Decoding, 304 Deepwater Horizon, 413–414 Deere & Co., 44 Dell Computer, 122, 377–379, 418 Deloitte, 58, 157, 417 Deloitte & Touche, 271 Delphi technique, 351 Delta Airlines, 191 Delta Apparel, 21 Demand, 18, 367–368 forecasting demand, 171 Demographics, 87, 187–188, 421–422 Design capacity, 365, 366 See also Organizational design CAD, 375 process redesign (reengineering), 441–442 product design, 121 Designing for manufacturing (DFM), 375, 377 Devil’s advocate, 343 DFM See Designing for manufacturing Dialectical inquiry, 350 Dickinson Brands Inc., 60 Differentiation, 281–283 integrated differentiation-cost leadership strategy, 99, 101 in organizational structure, 135 Differentiation strategy, 98–99 Direct contact, for integration, 159 Directing, 11, 13 Disney, 41, 84–85, 170, 191, 315 Disparate impact, 32 Distributed leadership, 206 Distributive justice, 32 Diversity, 30, 280 Alliant Energy and, 198–199 education and, 198–199 firm performance v., 191, 193 gender and, 188, 190–191 globalization v., 193–194 groups/teams v., 279–281, 298 sexual harassment and, 191 workforce demographic changes and, 187–188 Division of labor, 459 Division structure, 146, 154 DJO Inc., 287 DLA Piper, 348 DMADV (define, measure, analyze, design, verify) process, 365 DMAIC (define, measure, analyze, improve, control) process, 365 Dodge, 87 Downward communication, 308 DTE Energy, 400 Dual-career couple, 187, 190 E Eachnet.com, 68–69 eBay, 68–69, 315 Echo, 43 Economic order quantity (EOQ), 368–369 Eco-Products, Inc., 123–124 EDI See Electronic data interchange EDS, 150 Education, diversity and, 198–199 Effective capacity, 366 See also Groups/teams effectiveness Effective leadership, 208 Efficiency, 120, 464 Efficiency perspective concerns with, 37–38 externality in, 38–39 managers as agents and, 37 managers as owners and, 37 in social responsibility, 36–39 Efficiency perspective v stakeholder perspective accommodaters and, 41–42 anticipators and, 42 corporations response to, 41–42 defenders and, 41–42 reactors and, 41–42 Elance.com, 174–176 Electronic data interchange (EDI), 377 e-mail, 306–307, 310 Emerging markets, 163 Emotional intelligence, 219–220 Empathy, 318 Employees, 12, 138, 422 goals-setting with, 251, 253–254 “virtual,” 240, 261 Employee development career path for, 186 cross-functional job rotation and, 186 layoffs and, 187 promotions and, 186–187 termination and, 187 Employee empowerment, 138, 141 Employee incentives, 141, 185, 435 Employee performance evaluation, 181 behaviorally anchored rating scales for, 183 effective feedback for, 184 graphic rating scales for, 182 360-degree feedback for, 183–184 Employee referrals, in recruiting, 174 Employment agencies, 173–174 Empowerment, 138, 141, 216, 365–366 Encoding, 304 Encyclopædia Britannica, 419–421 Enel Green Power, 123–124 Enron, 28, 49, 61–62, 387 Entrepreneurial style, 12 Entrepreneurism, 9, 15–16 Entry barriers, 92 Environment, 35, 60–63, 115, 348 See also General environment ethics v., 123–124 external, 117–118 goals for, 123–124 Environmental complexity, organizational design and, 152–153 Environmental Defense, 40 Environmental dynamism, 153 Environmental Protection Agency (EPA), 43 Environmental uncertainty, 117–118 EOQ See Economic order quantity EPA See Environmental Protection Agency Equal Pay Act of 1963, 192 Equity theory, 243, 248–249 ERG Theory, 244–245 Ernst & Young, 151 Escalating commitment, decision making and, 343–345 Ethanol, 366–367 Ethics, 29, 53–54, 114 See also Code of ethical conduct; Moral intensity bribes v., 49, 53–54 environment v., 123–124 Protestant work ethic, 259 Ethical decision making justice approach to, 32–33 manager and, 45 moral rights approach to, 31 in organizations, 45–49, 53–54 universal approach to, 31–32 utilitarian approach to, 31 Ethical dilemma, 30 Ethical lapse, 30 Ethnocentrism, 30, 316–317 E*Trade, 218–219 European Space Agency, 150 Existence-Relatedness-Growth See ERG Theory Expectancy theory, 243, 249–252, 266–267 Expense budget, 124–125 Expert power, 211, 213–214 Export-Import Bank, U.S., 60 Exports, 65, 156 External environment, 116 benchmarking and, 118 forecasts and, 117–118 Externality, in efficiency perspective, 38–39 Extinction, motivation v., 256 Exxon, 315 ExxonMobil, 48 F Facebook, 107 Fair Labor Association (FLA), 35 Family and Medical Leave Act of 1993, 192 Fastenal, 387, 409 FCPA See Foreign Corrupt Practices Act FDA See Food and Drug Administration FDIC, 82 FedEx, 24, 68, 84, 101, 150 Feedback, 183–184, 248 Ferrari, 99, 100 Fiat, 83, 316, 376 Fiedler’s leadership contingency theory leadership and, 226–228 path-goal theory of leadership v., 228 Firm infrastructure, 62, 95 FLA See Fair Labor Association Flat organization structures, 138, 139 globalization and, 157–158 Flexibility, 408 organizational structures and, 157 Flexible manufacturing system (FMS), 374–376 FMS See Flexible manufacturing system Focus group, 443 Focus strategy, 99 Followers, 223–225 Food and Drug Administration (FDA), 38 Force Temporary Services, 173 Ford, 83, 87, 121, 362 Forecasts, 117–118, 171 Foreign Corrupt Practices Act (FCPA), 49–50 Formal authority, 211 Formal communication channel, 308, 310 Formal groups command (supervisory) groups, 272–273 committees, 273, 274 project/task forces, 273–274 Formalization, 137–139, 142 Formulation, 97–101, 171, 349–350 in decision making, 333 Fourteenth Amendment, 192 Frame of reference, 313 Friendship, leadership v., 205, 233–234 Friendship groups, 274–275 Functional level planning, 116 Functional principle, of management, 468 Functional structure, 142–144 Functions of management, 465 G Gale International, 60 Gantt Charts, 121–122, 371 The GAP, 153, 397 Gatekeeper, 320–321 Gavilan Computer, 347–348 SUBJECT INDEX Gender, 216 diversity and, 188, 190–191 dual-career couples v., 190 glass ceiling and, 190 Japan v., 190 sexual harassment and, 191 Gender focus, 64 General Electric, 20, 112, 146, 154, 172, 212, 214 General environment economic forces in, 88–90 global forces in, 89–90 political/legal forces in, 89 sociocultural forces in, 87–88, 90 in strategic management process, 87–90 technological forces in, 88, 90 General Motors, 10, 48, 83, 287, 346, 376, 418, 434, 453, 467–468 General Semiconductor, 77 Generations, 260, 327–328 Generation X, 260 Generation Y, 260 Geographic complexity, 153 Geographic/regional structure, 147–148, 155 Glass ceiling, 190 Global approach, 157–158 Global Crossing, 28 Globalization, 5–6, 59 diversity v., 193–194 glass ceiling v., 190 integration and, 158 organizational structure and, 157–158 virtual offices and, 227 Globally focused organization, 69 Global mind-set, 72 Global structures, advanced, 156 Global teams, 287, 288 GLOBE project, 209 Goals, 136, 227–228 for environment, 123–124 organization, 275–276, 286 questions before, 254 Goal setting commitment and, 126 criteria for, 125–126 with employees, 251, 253–254 measurability and, 126 realism and, 126 specific terms for, 125 time bound, 126 Goal-setting theory, 251, 253–254 Godiva, 85 Goldman Sachs, 174 Google, 91, 207, 280, 419 Grant Cathay Brokerage of Taiwan, 425–426 Greece, 344 Greenfield venture, 68–69 Greenpeace, 115 Gresham’s law of planning, 339–340 Groups, 257, 271, 440 basic types of, 272–275 Group cohesion, 285–286 Group conflict, 283, 290, 298 causes of, 291 intergroup conflict, 292 intragroup conflict, 292 managing, 291–292 process conflict, 291 relationship conflict, 291 task conflict, 291 Group norms, 277 characteristics of, 283–284 conformity and, 285 development of, 284–285 effects of, 285 organization goals v., 286 Groups/teams, 440 building and managing, 290–294 composition of, 279–281 conflict in, 290–292, 298 cross-functional/new product (service) groups, 287–288 developing competencies for, 290 differentiated roles in, 281–283 differentiated status levels in, 283 diversity v., 279–281, 298 effectiveness improvement in, 292–294 emerging types of, 286–289 formation/development of, 275–277 global teams, 287, 288 KSAs for, 290 role ambiguity in, 282–283 role conflict in, 283 self-managing, 287 size of, 277–278 virtual teams, 72, 276, 287, 288–289 Groups/teams characteristics behavioral characteristics in, 283–285 cohesion in, 285–286 structural characteristics in, 277–283 Groups/teams effectiveness assessing, 292–293 ingredients for, 293–294 leaders’ checklist for, 294 Groups/teams formation/development forming in, 276 group development stages in, 276–277 interaction and, 276 lift-out in, 275 norming in, 277 organization goals and, 275–276 performing in, 277 psychological factors in, 276 storming in, 277 of virtual teams, 276, 289 Groupthink, 286 decision making (group) and, 341–343 overcoming, 343, 344 symptoms of, 342–343 Guanxi, 73, 140 Gulf Italia, 53 Gulf Oil, 53 H Habitat for Humanity, 245 Half Price Books, 28, 50 Halliburton, 133–134, 148–149, 159 Harpo, Inc., 218 Harrah’s, 271, 294 HCA, 49 Hersey and Blanchard’s situational leadership model, 224 Herzberg’s two-factory theory, 243, 246–247 Heterogeneous groups, 279 Heuristic, 337–338 Hewlett-Packard, 83, 150, 430, 431 High-context culture, 70–71, 312, 315, 317 High performance work systems, 140 High-velocity environments, 348 HIV/AIDS, 45 Home Depot, 12, 43, 101–103 Homogeneous groups, 279 Honda, 83, 96, 423 Honeywell, 144 Honeywell Defense Avionics, 275 Hoshin kanri (policy deployment), Hotjobs.com, 174 Houston North Markets Spirit of Texas Bank, 82, 103 H&R Block, 226 HRM See Human resource management Hughes Tool Co., 48 Human relations approach, to management, 472–473 Human resource management (HRM), 94–95 See also Selection techniques (HRM); Socialization/training activities of, to get the right people, 170–178 diverse workforce management and, 187–194 intangible assets and, 167–168 job analysis and, 171–172 job design and, 181, 194 laws v., 191, 192 maximizing performance and, 178–187 overview of, 167–168 planning and, 171 recruiting and, 172–175 strategy formation v., 169 strategy implementation v., 169–170 Human resource policies and procedures, 400 Human resources approach, to management, 473–474 Hybrid organizational structure, 149–150 Hyundai, 83, 375 I IDEO, 121 Illusion of invulnerability, groupthink and, 342 Implicit favorite model, 338–339 Incentive plan, 185, 435 Incremental budgeting approach, 125 Inditex, 370 Individual decision making bounded rationality model of, 337–338 classical (rational) model of, 333, 335–337 retrospective decision model of, 338–339 Individualism, 64, 259 Industry and competitor forces, 90–93 Infiniti, 92 Influence tactics, 215–216 Informal communication channel, 310 Informal groups, 273–275 Informal organization, 139–140, 142 AES as, 141 Informational roles (managerial) disseminator role, 14–15 monitor role, 14 spokesperson role, 15 Information bias, 337 Information exchange, 323 Information quality, 406–408 Information technology, 175 Infosys, 315 In-group, 257 Initial public offering (IPO), 124 Initiating structure behaviors, 220–221 Institutional environment, 60 country clusters and, 63 economic development institution and, 61 importance of, 62–63 physical infrastructure institution and, 62 political-legal institution and, 61–62 Institutional forces, 89 Instrumentality belief, 250 Integrated differentiation-cost leadership strategy, 99, 101 Integration, 96, 135–137 direct contact for, 159 globalization and, 158 liaisons for, 159 teams for, 159 Integrative approaches, management and, 475–476 Intel, 83, 157 Intel Israel, 356 Interdependence, 136 Interest, in negotiation, 320–321 Intergroup conflict, 292 Intergroup cooperation, 286 Internal analysis firm infrastructure in, 95 HRM in, 94–95 inbound logistics in, 93 marketing/sales in, 94 operations in, 93 491 outbound logistics in, 93–94 primary/support activities in, 93 procurement in, 94 resource management evaluation in, 95–96 technology development in, 94 value chain in, 93, 94 value chain leveraging in, 95 Internal resources assessment, 119 Internal Revenue Service, 86 Internationalization, 24, 156 See also Globalization functional structure and, 142–144 global approach and, 157–158 International operations management globally focused organization in, 69 region-country focus in, 69–70 transnational organization in, 70 Internet e-mail, 306–307, 310 for recruiting, 174–175 Interpersonal barriers, to communication, 312–313 Interpersonal roles (managerial) figurehead role, 13–14 leader role, 14 liaison role, 14 Intervention, 440 Interview, structured, 176–177 Intragroup conflict, 292 Intuitive decision making, 338–339 IPO See Initial public offering J Japan, 87, 140 gender v., 190 motivation in, 246 Jarden Corporation, 242 Jefferson Pilot Financial (Lincoln Financial Group), 362 JetBlue, 93, 181, 351–352 JIT system See Just-in-time (JIT) system JMOs See Junior military officers Job analysis, 171–172 Job characteristics model, 247–248 Job complexity, 138 Job description, 172 Job design, 181, 194 content theories and, 247–248 Job dimensions (managerial), 18–19 Job posting, 173 Job sharing, 181 Job shops, 374 Job similarity, 138 Job specification, 172 Johnson & Johnson, 45–46, 206 Joint venture (JV), 251 JP Morgan, 174 Junior military officers (JMOs), 172 Junk Food, Inc., 3–4, 6, 21 Justice, in leaders, 13 Justice approach to ethical decision making, 32–33 Just-in-time (JIT) system, 371, 457 Justin TV, 207 JV See Joint venture K Kaizen, 364–365 KB Home, 118 Keane, 291 Kellogg, 85 Key Bank, 167 Key performance indicators, 392 Kimberly-Clark, 163–164 Kingsley Elementary School (Kingsley, Tennessee), 366 King Soopers, 124 Knowledge, skills, attitudes (KSAs), 290 Koch Pipeline Company, 402–403 Kohn Pedersen Fox, 60 KSAs See Knowledge, skills, attitudes 492 SUBJECT INDEX L M Language, 313 Large Hadron Collider particle accelerator, 278 Lateral communication, 308 Law of the situation, 470 Laws, 61–62, 89, 421 Gresham’s law of planning, 339–340 HRM v., 191, 192 Layoffs, 187 Leader-member exchange (LMX) theory, 225 Leaders, 14, 294 attributes of, 209 charismatic, 218–219 emotional intelligence for, 219–220 followers v., 223–225 gender v., 216 justice in, 13 self-confidence for, 217 social intelligence for, 220 traits of, 216–219 Leaders’ behaviors people behaviors, 220–221 task behaviors, 220–221 Leadership, 97–99, 101, 224, 458 authentic, 223 coping experience and, 212 cultures v., 208–210, 217 definition of, 206 distributed, 206 effective, 208 Facebook and, 207 Fiedler’s leadership contingency theory and, 226–228 friendship v., 205, 233–234 GLOBE project and, 209 headship v., 208–209 military officers and, 212 motivation v., 208 neutralizer of, 229 organizational, 206 organizational context and, 226 paternalism v., 209 path-goal theory of, 227–228 potential of, 205–206 powerlessness v., 210, 233–234 substitutes for, 228–229 tasks and, 225–226 transactional, 222 transformational, 221–223 use of power and, 210–216 virtual offices and, 227 Leadership process, 216–223 situations and, 225–228, 233–234 Leading, managing v., 208 Leading coalition, 434 Learning effects, 374 organizational learning, 442–443 Legal/political developments, 61–62, 89, 141, 192, 421 Legitimate power, 211–212 Lehman Brothers, 28 Lenova, 67 Lexmark, 431 Lexus, 92 Liaisons, 14, 159 networking, 311–312 Liberty Tire Recycling, 123–124 Lift-out, in groups/teams formation/development, 275 The Limited, 397 Limited liability, 39 Line of authority, 137 LinkedIn, 174 Listening, 318–319 Listening skills, 318–319 LMX theory See Leader-member exchange (LMX) theory Local approach, 158 Lockheed Martin, 47–48, 49 Lord Eye Center, 332, 352 Low-context culture, 70–71, 312, 315, 317 Lowes, 43, 102 Magnitude of the consequences, 33 Malcolm Baldrige National Quality Award, 365 Management, classical principles of, 468 contingency approach to, 476 decision-making approaches to, 474–475 functions of, 465 historical approaches to, 9–10 human relations approach to, 472–473 human resources approach to, 473–474 integrative approaches and, 475–476 Management science (operations research), 474 Managerial challenges entrepreneurism as, globalization as, 5–6 resource management as, 6–7 strategy as, 8–9 technology as, Managerial ethics, 29 Managerial functions, 11 control, 13, 388–390 Managerial Grid, 221 Managerial thought America’s Industrial Revolution and, 460 England’s Industrial Revolution and, 458–460 General Motors and, 453 origins of, 457–460 overview of, 454–457, 477 pre-Industrial Revolution influences, 457–458 Managers, 21, 37, 48–49 functions of, 10–19 negotiation for, 16, 320 Managing, leading v., 208 Marathon Oil, 53 Maritime New Zealand, 339 Market-entry strategies (international) cross-border acquisition, 67–68 exporting, 65 licensing, 65–66 strategic alliances, 66 wholly owned subsidiaries, 68–69 Marketing and sales, 94 Marks & Spencer, 96, 404 Marriott Hotels, 363 Marriott International, 44–45, 188–190, 193 Maslow’s need hierarchy theory, 242–243, 244–245 MasterCard, 280 Materials requirement planning (MRP), 368 Matrix structure, 148–149 Matsushita, 70–71, 142–143, 159 Mattioli Racing, 207 Mayo Clinic, 425 McCann Erickson, 280 McClelland’s acquired needs theory, 243 McCulloch, 44 McDonald’s, 152, 395, 427 McDonnell Douglas Corporation, 375, 377 McKinsey Consulting, 101 MeadWestvaco, 40 Mechanistic approach, to management, 476 Medium, 304 Mentors, 324 Mercedes, 92, 316 Merck, 226 Michelin America, 278 Microsoft Corporation, 19, 224, 420, 457 Military Academy at West Point, U.S., 223–224 Military officers, 172, 212 Millenials, 260 Mindguards, groupthink and, 343 Mission statement, in strategic management process, 86 Mississippi River Corp., 40 Mistakes, 21 Mitsubishi Heavy Industries, 315 Mobil Oil, 53 Monster.com, 174 Moral intensity concentration of effect and, 34 definition of, 33 magnitude of the consequences and, 33 probability of effect and, 34 proximity and, 34 social consensus in, 33–34 temporal immediacy and, 34 Moral rights approach, to ethical decision making, 31 Morton’s Restaurant Group, 389–390 Motivation, 186, 208, 241, 246 acquired needs theory and, 245–246, 266–267 cultures and, 251, 258 equity theory for, 243, 248–249 expectancy theory for, 243, 249–252, 266–267 extinction v., 256 goal-setting theory for, 251, 253–254 in-group v., 257 negative reinforcement for, 255, 256 organizational culture v., 258 path-goal theory of leadership and, 227–228 positive reinforcement for, 254–257 punishment v., 255–256 satisfaction v., 247 situation v., 251, 257–258 sources of, 241–242 supervisors/subordinates v., 257–258 two-factor theory and, 243, 246–247 values v., 258–259 for “virtual” employees, 240, 261 work attitudes v., 259, 261 Motivational theories See also Process theories content theories, 241–248 Motorola, 47, 157, 171–172, 177, 186, 343 MRP See Materials requirement planning Multinational teams, 72, 288 Multiple advocacy, 350 Multipoint competition strategy, 101 Multiproduct strategy, 154 N Native Americans, 271 NEC, 428–429 Negative reinforcement, 255, 256 Negotiation, 16 See also Cross-national negotiation process collaboration in, 321 definition of, 320 effectiveness in, 320–321 interest in, 320–321 for managers, 320 position in, 320–321 Neoclassical administrative theory, 468–471 Netflix, 100, 106, 171 Networking, 311–312 Network structures, 150–151 Neutralizer of leadership, 229 New Edge Consulting, 111 NeXT, 171 Next Jump, Inc., 278 NGT See Nominal group technique Nike, 34–36, 134, 150 Nippon Sheet Glass, 72, 73 Nissan, 70, 73, 83, 177, 383–384, 423 Nissan Design, 279 Noise, 304 Nokia, 154–155, 343 Nominal group technique (NGT), 351 Nonprogrammed decision, 339 Nonverbal communication, 305–306, 313, 319 Nordstrom, 120, 168, 169–170, 405 Norms See Group norms Novo Nordisk, 216 O Objectives, 96–97, 113, 117, 333 measurement of, 120 priorities v., 119–120 setting, 119–121 Objectivity, control v., 408 OD See Organizational development Offshoring, 67 On-the-job (OTJ), 179–180 Open system, 475–476 Operational control, 402–403 Operational plans, 113, 114, 116 Operations management, 361–362 See also International operations management Operations research, 474 Opportunity, 96, 335 Oral communication, 304–305 Orb Audio, 59, 60 Oregon Freeze Dry, 364 Organic approach, to management, 476 Organization, bureaucracy v., 467 scope of control in, 394–403 Organizational barriers, to communication, 312, 313 Organizational change, 417 causes of, 418–422 determining where for, 422–426 evaluating need for, 426–427 inside forces and, 421–422 outside forces and, 418–421 Organizational chart, 134–135 Organizational context, 226, 307–312 Organizational culture, 258 Organizational design, 134 environmental complexity and, 152–153 strategy in, 153–154 Organizational development approach, to change, 438, 440–441 Organizational leadership, 206 Organizational learning, 442–443 Organizational renewal, 441 Organizational structure common examples of, 142–150 customer structure, 146–147 definition of, 134–135 differentiation in, 135 division structure, 146, 154 functional structure, 142–144 geographic/regional structure in, 147–148 globalization and, 157–158 hybrid, 149–150 integration in, 135–137 in international context, 154–156 at Kimberly-Clark, 163–164 managerial profile on, 133–134 matrix structure, 148–149 network organizational structure, 150–151 network structures, 150–151 principles of, 134–142 product structure, 144–145 Organization goals, 286 groups/teams formation/development and, 275–276 Organizations communication channels within, 308, 310 communication directions within, 307–308 ethical decision making in, 45–49, 53–54 Organized labor (unions), 462–463 SUBJECT INDEX Organizing, 11 OTJ See On-the-job Outback Steakhouse, 118 Outbound logistics, 93–94 Outdoor Power Equipment Institute, 43–44 Outsourcing, 67, 156 fulfillment plans and, 171 network structures and, 150–151 organizational structures and, 157 P Participative decision making, contingency model of, 345–347 Path-goal theory of leadership, 227–228 Pay structure, 184–185 Elance.com and, 175–176 Peanut Corporation of America, 37–38 People skills, 21 Pepsi, 251, 305 Perception, 335 See also Values equity theory and, 248–249 selective, 313, 337 Perceptual distortion, 338 Performance, 191, 193 measurement of, 391–392 standards v., 392–393 Performance (maximizing), 178 compensation and, 184–186 employee development and, 186–187 employee performance evaluation and, 181–184 HRM and, 178–187 job design and, 181, 194 reengineering for, 181 socialization/training for, 179–181 Personal power, 211, 213–214 PERT/CPM (program evaluation and review technique/critical path method), 371–372 Philips, 140–141, 193 Physical forces, 89 Pininfarina, 100 Pioneers of classical management theory, 464–468 of scientific management approach, 460–464 Plans, 123, 171 action plans, 117, 121–122 contingency, 118 definition of, 113 interrelationship between types/ levels, 116 operational/strategic/tactical, 113, 114, 116 Planet Golf, Plan implementation monitoring, 122–123 real-time adjustments and, 123 Planning, 11, 111–113, 323, 433–435 assessing supply in, 171 at business level, 114–115, 116 capacity, 366–368 at corporate level, 113–114, 116 definition of, 113 at functional level, 116 Gresham’s law of, 339–340 HRM and, 171 new program launch, 129–130 overview of, 113–116 Planning process action plans development in, 117, 121–122 external environment analysis in, 116–118 internal resources assessment in, 119 objectives setting in, 117, 119–121 outcomes monitoring in, 117, 123 plans implementation in, 122–123 Planning tools budgets in, 124–125 goal setting criteria in, 125–126 Polaroid, Pooled interdependence, 136 Position, 320–321 Position power, 211 Positive psychology, 223 Positive reinforcement availability of, 255 for motivation, 254–257 planned programs of, 256–257 reversibility of, 255 Positive word of mouth revenue, 363 Postcontrol, 402–403 Power amount to use, 214–215 definition of, 210 effective use of, 214–216 empowerment, 138, 141, 216, 365–366 how to use, 214, 215–216 influence tactics v., 215–216 personal, 211, 213–214 position, 211–213 power distance, 63 sharing, 214, 216 types/sources of, 211–214 types to use, 214–215 use of, 210–216 Prairie Band Casino, 271 Precontrol, 402 PricewaterhouseCoopers LLP, 417, 439–440, 444 Primary activities, 93 Probability of effect, 34 Problems, 335 improving formulation of, 349–350 improving problem-solution process, 351–352 technology’s role and, 352 Problem solving, 21 Procedural justice, 32 Process conflict, 291 Process costs, 278 Process redesign (reengineering), 441–442 Process theories equity theory in, 243, 248–249 expectancy theory as, 243, 249–252, 266–267 goal-setting theory and, 253 SCT as, 252–253 Procter & Gamble, 72, 92, 112, 158, 163–164, 287, 436 Procurement, 94 Product design, 121 Productivity cost reduction and, 372–377 definition of, 372 Product structure, 144–145 international firms and, 155–156 Profit center, 143 Program evaluation and review technique/critical path method See PERT/CPM Programmed decision, 339 Project/task forces, 273–274 Proposed budget, 125 Prospective rationality, 345 Protestant work ethic, 259 Proximity, moral intensity and, 34 Publicis Groupe, 209–210 Punishment, motivation v., 255–256 Q Quality definition of, 362 managing, 362–377 TQM, 363–366, 457 Quantitative decision-making approaches, 474–475 R Radio-frequency identification (RFID), 404–405 Railroads, 178, 306, 361, 380–381, 403, 460 Rationalization, groupthink and, 342 Rational-legal authority, 467 Rational (classical) model of decision making See Classical (rational) model of decision making Reciprocal interdependence, 136 Recruiting advertisements, 173 employee referrals, 174 employment agencies, 173–174 Internet for, 174–175 job posting, 173 school placement centers, 174 RedBox, 106 RedMax, 43 Reengineering, 181, 441–442 Referent power, 211, 214 Regional structure, 147–148, 155 Region-country focus, 69–70 Rehabilitation Act of 1973, 192 Reinforcement approaches negative reinforcement, 255, 256 positive reinforcement, 254–257 Relationships, 323 with suppliers, 380 Relationship conflict, 291 Relationship-oriented behaviors, 220–221 Resource management, 6–7, 95–96 See also Human resource management Resources assessment, 119 Retrospective decision model, 338–339 Return on equity (ROE), 396 Return on investment (ROI), 396 Reward power, 211, 213 RFID See Radio-frequency identification Ritz-Carleton, 391 River Valley, 339 ROE See Return on equity ROI See Return on investment Role ambiguity, 282–283 Role conflict, 283 Rules, 136 Ryder, 151 S Safety, Health, Attitude of Management, People, and Environment (SHAPE), 35 Samsung, 342, 424 San Francisco Chronicle, 67 Sarbanes-Oxley Act (SOX), 61–62, 141 SAS Institute, 243 Satisficing, 338, 474 Saville Row, 374 SBU See Strategic business unit Scalar principle, of management, 468 Scientific management definition of, 461 other leaders of, 464 principles of, 461–462 Taylor for, 461–464 Scott Paper, 163 SCT See Social cognitive theory Security, 243–244 Selection techniques (HRM) assessment centers in, 177 background/reference checks in, 178 Elance.com for, 174–176 interviewee tips, 177 interviewer tips, 176 interviews and, 176–177 physical exams in, 178 work sampling in, 177 work simulations in, 177 written tests in, 177–178 Selective perception, 313, 337 Self-censorship, groupthink and, 343 Self-confidence, 217 Self-efficacy, 252–253 Self-managing work group, 287 Sequential interdependence, 136 493 SEU model See Subjectively expected utility (SEU) model Sexual harassment, 191 SHAPE See Safety, Health, Attitude of Management, People, and Environment Shell, 186 Shimano, 121 The Shoppes at Brownstone Village, 205, 229 SIA See Strategy in Action Siemens, 379 Simulation, 474–475 Situations, 224, 333 leadership process and, 225–228, 233–234 motivation v., 251, 257–258 Six Sigma, 365, 434–435 Skills (managerial) See also Communication; Cross-national negotiation skills conceptual, 20 interpersonal, 19–20 technical, 19 Skill variety, 248 Small batch processes, 374 SmithKline Beecham, 49 Snapple, 67 Social cognitive theory (SCT), 252–253 Social consensus, 33–34 Social intelligence, 220 Socialization/training off-the-job, 179 orientation and, 179 OTJ, 179–180 technical/interpersonal/conceptual, 179–181 Social loafing, 278 Social responsibility efficiency perspective in, 36–39 ethical dilemma in, 30 ethical lapse in, 30 example of, 28 managerial ethics and, 29 Social responsibility perspective concerns with, 39–40 stakeholders in, 39 strategic corporate social responsibility perspective as, 42, 44–45 Sociocultural forces, 87–88, 90 Solo Cup, 40 Solution, 335 Sony, 73, 140, 424 SOP See Standard operating procedure Southwest Airlines, 100, 168–169, 218, 398 South West Trading, 403 SOX See Sarbanes-Oxley Act Span of control, 137–138, 139 SPC See Statistical process control Sport utility vehicles (SUVs), 87 Staff principle, of management, 468 Stage-gate technology, 392 Stakeholders, 39 See also Efficiency perspective v stakeholder perspective Standard operating procedure (SOP), 339 Standards, 372–373, 390–391 performance v., 392–393 Starbucks, 40, 98, 427 Starent, 115 Statistical process control (SPC), 364 Status, 283 Stellato & Schwartz, 348 Stereotyping, 317, 337 groupthink and, 342–343 Stihl, 43 Strategic alliances, 66 Strategic business unit (SBU), 114 Strategic control, 395–396 Strategic corporate social responsibility perspective, 42, 44–45 494 SUBJECT INDEX Strategic management process, 82 general environment in, 87–90 implementation monitoring/ evaluating, 103 industry and competitor forces and, 90–93 integrating internal/external analyses in, 96 internal analysis in, 93–96 mission statement in, 86 multipoint competition strategy in, 101 sociocultural forces in, 87–88, 90 strategic objectives in, 96–97 strategic vision in, 85–86 strategy formulation in, 97–101 strategy implementation in, 101–103 suppliers and, 92–93 Strategic objectives, 96–97 Strategic plans, 113, 114, 116 Strategic scope, 99 Strategy, 97–100 change v., 423 formation, 169 implementation, 101–103, 169–170 in organizational design, 153–154 Strategy in Action (SIA), Strengths, weaknesses, opportunities, and threats See SWOT analysis Stress, 21, 337 Structured debate, 350 Structured interview, 176–177 Subjectively expected utility (SEU) model, 335–336 Substantive conflict, 291 Substitution, in competitive advantage, 85 Suncor Energy, 134–135 Supervisory group See Command group Supervisory structure, 399–400 Suppliers environmental complexity and, 153 relationships with, 380 strategic management process and, 92–93 Supply chain management, 377–380 Support activities, 93 SUVs See Sport utility vehicles Swift trust, 72 Switching cost, 92 SWOT analysis, 96 System, 475 Systems theory, 475–476 T Tactical control budgetary controls, 398–399 financial control, 396–398 human resource policies and procedures, 400 supervisory structure, 399–400 Tactical plans, 113, 114, 116 Tall organization structure, 138, 139 Tandberg, 115 Tanjin Datian W Group, 24 Taobao, 69 Task conflict, 291 Task differentiation, 135 Task forces, 273–274 Tasks, leadership and, 225–226 Task significance, 248 Tata Group, 223 Teams See also Groups/teams cross-functional, 346 definition of, 272 for integration, 159 virtual teams, 72, 276, 287, 288–289 Technology, 88, 90, 138, 175, 392 change and, 423, 425, 448 environmental complexity and, 153 Industrial Revolution and, 458–460 JetBlue and, 351–352 as managerial challenges, war and, 356 Technology development, 94 TechTronics Industries, 43 Temporal immediacy, 34 Termination, 187 Texas Carpet Recycling, 123–124 Texas Instruments, 157, 240 T-group, 440 3M, 60 Three-need theory See Acquired needs theory 360-degree feedback, 183–184 Tiger International Inc., 24 Timing, 464 of products/services, 369–372 Tom Online, Inc., 69 Total quality management (TQM), 364–366, 457 definition of, 363 Tour de France, 282 Towers Watson, 243–244 Toyota, 72, 73, 83, 140, 152, 274, 362, 406, 423 Traditional authority, 467 Training See also Socialization/training code of ethical conduct and, 47–48 senior executives and, 129–130 Trait, 216 Transactional leadership, 222 Transcontinental Printing, 67 Transformational leadership, 221–223 Transnational organization, 70 Transocean, 413–414 Turnover, 352, 439–440 Two-factor theory, 243, 246–247 Two J’s Auto Repair, 314 Tyco, 28 U Uncertainty, 136 environmental, 117–118 organizational, 154 uncertainty absorption, 337 uncertainty avoidance, 63–64 Union Pacific railroad, 403 United Technologies, 60 Unity of command, 137 Universal approach, to ethical decision making, 31–32 University of North Carolina, 289 Unocal, 68 UPS, 68, 84, 101, 151, 173, 334 Upward communication, 308 Utilitarian approach, to ethical decision making, 31 V Valid selection technique, 176 Value chains, 93–95 Values, 83–85, 137, 251, 423, 425–426 generations v., 260 motivation v., 258–259 Vanguard, 273–274 Variable compensation, 185 Venn diagram, 208 Viacom, 106, 209–210 Vietnam, 251 Virgin Atlantic, 174 Virginia Credit Union, 422 Virtual teams, 72, 276, 287, 288–289 Visa, 280 Vishay General Semiconductor LLC, 77 Vishay Intertechnology, 77 Vodaphone, 69 W Wall Street Journal, 318 Wal-Mart, 6, 7, 43, 59, 61, 89, 92, 96, 101, 123, 170, 172, 404 Walt Disney Company See Disney War, 356 Warner Brothers, 315 WellPoint, 318 Whistle-blowers, 48 Wholly owned subsidiaries, 68–69 Wikipedia, 420–421 Wildman, Harrold, Allen & Dixon, 348 Work centrality, 259 Work engagement, 247–248 Work-life balance, 259–260 Work sampling, 373 Work standard, 372–373 WorldCom, 28, 61–62 World is Flat, The (Friedman), 59 Written communication, 305, 319 X Xerox, 7–8, 67, 85, 287 Z Zain, 68 Zara, 370 Zero-based budgeting approach, 125 ... theory 22 5 legitimate power (or formal authority) 21 1 neutralizers of leadership 22 9 organizational leadership 20 6 path–goal theory of leadership 22 7 personal power 21 1 position power 21 1 power 21 0... position power 21 1 power 21 0 referent power 21 4 reward power 21 3 social intelligence 22 0 trait 21 6 transactional leadership 22 2 transformational leadership 22 2 Review Questions What is leadership?... leader 21 8 coercive power 21 3 effective leadership 20 8 emotional intelligence 21 9 empowerment 21 6 expert power 21 3 Hersey and Blanchard’s situational leadership model 22 4 influence tactic 21 5 leader-member