Management, 11th edition

Management ELEVENTH EDITION Qwerty on KAT.PH for more This page intentionally left blank Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Kim Norbuta Director of Editorial Services: Ashley Santora Editorial Project Manager: Claudia Fernandes Editorial Assistant: Carter Anderson Director of Marketing: Patrice Lumumba Jones Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Senior Operations Supervisor: Arnold Vila Design Development Manager: John Christiana Art Director: Kathryn Foot Text and Cover Designer: Kathryn Foot Photo Development Editor: Nancy Moudry Editorial Media Project Manager: Denise Vaughn MyLab Product Manager: Joan Waxman Media Project Manager: Lisa 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Department, One Lake Street, Upper Saddle River, New Jersey 07458 Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Robbins, Stephen P Management / Stephen P Robbins, Mary Coulter — 11th ed p cm Includes bibliographical references and index ISBN 978-0-13-216384-2 Management I Coulter, Mary K II Title HD31.R5647 2012 658—dc22 2010035514 10 ISBN 10: 0-13-216384-5 ISBN 13: 978-0-13-216384-2 ᩄ To my wife, Laura Steve To my family: Ron Sarah and James Katie and Matt and our newest addition, Brooklynn Mary ᩄ v STEPHEN P ROBBINS (Ph.D., University of Arizona) is professor emeritus of management at San Diego State University and the world’s best-selling textbook author in the areas of both management and organizational behavior His books are used at more than 1,000 U.S colleges and universities, have been translated into 19 languages, and have adapted editions for Canada, Australia, South Africa, and India Dr Robbins is also the author of the best-selling The Truth About Managing People, 2nd ed (Financial Times/Prentice Hall, 2008) and Decide & Conquer (Financial Times/Prentice Hall, 2004) In his “other life,” Dr Robbins actively participates in masters’ track competitions Since turning 50 in 1993, he’s won 21 national championships and 12 world titles He was inducted into the U.S Masters’ Track & Field Hall of Fame in 2005 Dr Robbins is the current world record holder at 100m (12.37) and 200m (25.20) for men 65 and over MARY COULTER (Ph.D., University of Arkansas) is professor emeritus at Missouri State University Dr Coulter has published other books with Prentice Hall, including Strategic Management in Action, now in its fifth edition, and Entrepreneurship in Action, which is in its second edition During her “free” time, Dr Coulter enjoys puttering around in her flower garden, trying new recipes on family members (usually successful!), reading a variety of books, and enjoying many different activities with Ron, Sarah and James, Katie and Matt, and first granddaughter, Brooklynn vi Preface xxiii Part I Chapter Module Chapter Part II Chapter Chapter Chapter Chapter Part III Chapter Chapter Chapter Module Part IV Chapter 10 Chapter 11 Chapter 12 Module Chapter 13 Introduction to Management Management and Organizations Management History 27 Understanding Management’s Context: Constraints and Challenges 42 Integrative Managerial Issues Managing in a Global Environment 68 Managing Diversity 96 Managing Social Responsibility and Ethics Managing Change and Innovation 150 122 Planning Managers as Decision Makers 176 Foundations of Planning 202 Strategic Management 222 Planning Tools and Techniques 248 Organizing Basic Organizational Design 262 Adaptive Organizational Design 286 Managing Human Resources 310 Managing Your Career 340 Managing Teams 344 Part V Leading Chapter Chapter Chapter Chapter 14 15 16 17 Part VI Chapter 18 Chapter 19 Appendix: Understanding Individual Behavior 370 Managers and Communication 402 Motivating Employees 428 Managers as Leaders 458 Controlling Introduction to Controlling 484 Managing Operations 514 Managing Entrepreneurial Ventures Endnotes 561 Name Index 607 Organization Index Glindex 628 Photo Credits 643 537 624 vii This page intentionally left blank Preface xxiii Part I Introduction to Management Chapter Management and Organizations Why Are Managers Important? Who Are Managers and Where Do They Work? Who Is a Manager? 5 Where Do Managers Work? What Do Managers Do? Management Functions Mintzberg’s Managerial Roles and a Contemporary Model of Managing Management Skills 12 How Is the Manager’s Job Changing? 13 Importance of Customers to the Manager’s Job 14 Importance of Innovation to the Manager’s Job 16 Importance of Sustainability to the Manager’s Job Why Study Management? 16 17 The Universality of Management The Reality of Work 10 17 18 Rewards and Challenges of Being a Manager 18 Boxed Features A Manager’s Dilemma BY THE NUMBERS FUTURE VISION | The Working World in 2020 LEADER WHO MADE A DIFFERENCE | Andrew Cherng 12 My Response to A Manager’s Dilemma 19 Chapter Summary by Learning Outcomes Review and Discussion Questions Preparing for: My Career 20 21 21 Case Application 1: More Than a Good Story Case Application 2: Flight Plans Module 23 24 Management History 27 Early Management Classical Approach 28 29 Behavioral Approach Quantitative Approach 32 34 Contemporary Approaches 36 ix GLINDEX Business plan A written document that summarizes a business opportunity and defines and articulates how the identified opportunity is to be seized and exploited, 546, 547 analysis of the context, 546 analysis of opportunity, 546 description of the business, 546 executive summary, 546 financial data and projections, 546–547 supporting documentation, 547 C Calm waters metaphor, 152–153 Canadian Human Rights Act, 316–317 Canadian laws pertaining to HRM, 316–317 Capabilities An organization’s skills and abilities in doing the work activities needed in its business, 228, 229 Career module, managing, 340–343 career opportunities in management, 340 cultural fit, finding, 340–341 getting along with people, 341–342 job fulfillment, 342 reinventing yourself, 341 risk taking, 341 successful career, path to, 341–342 Center for Creative Leadership study, 357 Central America Free Trade Agreement (CAFTA), 74 Centralization The degree to which decision making is concentrated at upper levels of the organization, 272, 273 today’s view of, 272–273 vs decentralization, 272E10-7 Certainty A situation in which a manager can make accurate decisions because all outcomes are known, 187 Chain of command The line of authority extending from upper organizational levels to the lowest levels, which clarifies who reports to whom, 268, 269 authority and, 268–270, 269E10-4, 270E10-5 dual, in matrix structure, 290 information technology and, 271 responsibility and, 270 today’s view of, 270–271 unity of command and, 270 Change agent Someone who acts as a catalyst and assumes the responsibility for managing the change process, 155 Change-capable organizations, 164–165, 165E6-8 Change process, 152–154 calm waters metaphor and, 152–153 in entrepreneurial ventures, 551–552 external and internal forces for, 152, 153E6-1 Lewin’s three-step change process and, 153, 153E6-2 resistance to, 158–159, 159E6-5 white-water rapids metaphor and, 153, 154 See also Organizational change Channel The medium a message travels along, 406, 407 Charismatic leader An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways, 470–471 Civil Rights Act of 1964, 316E12-3 Classical approach First studies of management, which emphasized rationality and making organizations and workers as efficient as possible, 29, 38 Classical view The view that management’s only social responsibility is to maximize profits, 124, 125 Clicks-and-bricks strategy, 237 Closed system Systems that are not influenced by and not interact with their environment, 36, 38 Closely held corporation A corporation owned by a limited number of people who not trade the stock publicly, 548EA-4, 549 Code of ethics A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow, 136–137 Coercion, to reduce resistance to change, 159, 159E6-5 Coercive power The power a leader has to punish or control, 472, 473 Cognitive component That part of an attitude that’s made up of the beliefs, opinions, knowledge, or information held by a person, 374, 375 Cognitive dissonance Any incompatibility or inconsistency between attitudes or between behavior and attitudes, 379 Collaboration, organizing for, 293–297 benefits and drawbacks of, 293E11-3 external collaboration, 295–297 internal collaboration, 294–295 value chain management in, 522 Collectivism, in national cultures in GLOBE framework, 84, 84E3-6 in Hofstede’s framework, 83E3-5 in-group, 84, 84E3-6 institutional, 84, 84E3-6 Command groups, 347E13-1 Commitment concept The purpose of an organization, 211–212 Committee to Encourage Corporate Philanthropy, 142 Communication The transfer and understanding of meaning, 404–405 functions of, 405–406 information technology and, 416–417 interpersonal, 406–411 nature of, 404–405 organizational, 412–415 to reduce resistance to change, 158, 159E6-5 Communication issues, 417–421 customer service and, 419–420 e-mail, 416, 417–418 employee input, 420, 420E15-5 ethical communication, 420–421 Internet, 417–418 knowledge resources, 418–419 Communication networks The variety of patterns of vertical and horizontal flows of organizational communication, 413–414 Communication process The seven elements involved in transferring meaning from one person to another, 406, 407 Communities of practice Groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis, 295, 295E11-4 Compensation and benefits, 326, 327–328 determining factors for, 327, 328E12-11 family-friendly, 330 laws for, 316E12-3 skill-based pay, 327 types of, 326 variable pay systems, 327–328 Competence, 473 Competitive advantage What sets an organization apart; its distinctive edge, 232, 233 in entrepreneurial ventures, 542 five forces model and, 233, 233E9-5 quality as, 232 sustaining, 232 Competitive strategy An organizational strategy for how an organization will compete in its business(es), 231 choosing, 233–234 competitive advantage in, 231–232 cost leadership, 233 differentiation, 234 focus, 234 functional, 234 Competitor intelligence Environmental scanning activity by which organizations gather information about competitors, 214–215, 249 Competitors, in entrepreneurial ventures, 544–545 Complainers, 342 Compressed workweek A workweek where employees work longer hours per day but fewer days per week, 299 Computer conference, 408E15-2 Computerization, 156 Computer software, decision-making, 187 Concentration, 229 Conceptual skills The ability to think and to conceptualize about abstract and complex situations, 13 Concurrent control Control that takes place while a work activity is in progress, 494, 495, 503E18-12 Confirmation bias, 191, 191E7-11 Conflict Perceived incompatible differences that result in interference or opposition, 354, 355 functional vs dysfunctional, 354–355 future, 356 group performance and, 355E13-7 human relations view of, 354, 355 management, 354–356, 356E13-8 views regarding, 354 Conformity in global work teams, 362 in group structure, 350–351 Conscientiousness, in Big Five Model, 382 Consideration The extent to which a leader has work relationships characterized by mutual trust and respect for group members’ ideas and feelings, 463 Consistency, 473 Consolidated Omnibus Reconciliation Act (COBRA), 316E12-3 Contingency approach A management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing, 37, 38 contingency variables in, 38EMH-8 Contingency planning, 259–260 629 630 GLINDEX Contingent workers Temporary, freelance, or contract workers whose employment is contingent upon demand for their services, 299–300 motivating, 448–449 Control balanced scorecard and, 496–497 benchmarking and, 498, 498E18-10 concurrent, 494, 495 contemporary issues in, 499–505 corporate governance and, 504–505 cross-cultural differences and, 499 customer interactions and, 503–504 feedback, 494–495 feedforward, 494 financial, 495–496 information, 497–498 types of, 494E18-8 workplace concerns and, 499–503 Controlling The process of monitoring, comparing, and correcting work performance, 9, 486–487 cultural effects on, 57E2-9 in entrepreneurial ventures, 555–559 importance of, 487 information, 497–498 managerial decisions in, 491, 491E18-6 for organizational performance, 491–493 planning-controlling link, 487E18-2 for quality, 527–528 Control process A three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards, 488, 488E18-2, 489 measuring actual performance, 488, 489E18-3 range of variation in, 489–490, 489–490E18-4–5 taking managerial action, 490–491 Conventional level of moral development, 130, 131E5-4 Co-optation, to reduce resistance to change, 159, 159E6-5 Coordination in value chain management, 522 Corporate philanthropy, 141–142 Core competencies The organization’s major value-creating capabilities that determine its competitive weapons, 228, 229 Corporate governance The system used to govern a corporation so that the interests of corporate owners are protected, 504–505 board of directors, role of, 505 financial reporting and audit committee, 505 Corporate strategy An organizational strategy that determines what businesses a company is in or wants to be in, and what it wants to with those businesses, 228 BCG matrix and, 230–231, 231E9-4 growth, 229–230 managing, 230–231 renewal, 230, 231 stability, 230, 231 types of, 229–230, 229E9-3 Corporation A legal business entity that is separate from its owners and managers, 548EA-4, 549 Cost leadership strategy, 233 Counseling, 163 Creativity The ability to combine ideas in a unique way or to make unusual associations between ideas, 166, 167 Credibility The degree to which followers perceive someone as honest, competent, and able to inspire, 473 Critical incident performance appraisal, 327E12-10 Critical path The longest sequence of activities in a PERT network, 254, 255 Cross-functional team A work team composed of individuals from various functional specialties, 268, 269, 294–295, 347E13-1, 359 Cultural fit in career path, 340–341 Cultural intelligence Cultural awareness and sensitivity skill, 85 Culture See National culture; Organizational culture Customer interactions, controlling, 503–504 Customer-responsive culture, creating, 58, 59E2-10 Customer service communication in, 419–420 Internet and, 530 lean organization and, 529, 530 management, 14–16 D Decentralization The degree to which lowerlevel employees provide input or actually make decisions, 272, 273 today’s view of, 272–273 vs centralization, 272E10-7 Decisional roles Managerial roles that revolve around making choices, 10, 11 Decision criteria Criteria that define what’s important or relevant to resolving a problem, 180, 181 Decision making biases and errors in, 190–191, 191E7-11 bounded rationality and, 183–184 conditions (See Decision-making conditions) effective, 192–194 evidence-based management and, 185 group structure and, 353–354, 354E13-6 intuitive, 184–185, 184E7-6 linear-nonlinear thinking style profile, 190 by managers, 182–183, 182E7-5 overview of, 192, 192E7-12 process (See Decision-making process) rational, 183 software, 187 styles, 190–192 Decision-making conditions, 187–190 certainty, 187 expected value, 188, 188E7-8 payoff matrix, 188–189, 189E7-9 regret matrix, 189, 190E7-10 risk, 187–188 uncertainty, 188–189 Decision-making process, 178–182, 179E7-1 analyzing alternatives, 181, 181E7-4 developing alternatives, 181, 181E7-3 effective, in today’s world, 193 evaluating decision effectiveness, 182 identifying decision criteria, 180, 180E7-2 identifying problems, 179–180 implementing alternatives, 182 selecting alternatives, 182 weighted criteria in, 180 Decisions A choice among two or more alternatives, 178, 179 made by managers, 182E7-5 types of, 185–186, 187E7-7 See also Decision making Decoding Retranslating a sender’s message, 406, 407 Decruitment Reducing an organization’s workforce, 319–320 options, 320E12-4 Deep-level diversity Differences in values, personality, and work preferences, 100, 101 Defensiveness, in interpersonal communication, 410–411 Delegating, in SLT, 466 Democratic style A leader who involves employees in decision making, delegates authority, and uses feedback as an opportunity for coaching employees, 462, 463 Demographics of entrepreneurial ventures, 542 in HRM trends, 317–318 of organizational environment, 47–48 Demographic shift, Departmentalization The basis by which jobs are grouped together, 266–267 forms of, 267E10-3 today’s view of, 266 Diagonal communication Communication that cuts across work areas and organizational levels, 413 Differentiation strategy, 234 Difficult people, getting along with, 342 Directional plans Plans that are flexible and set out general guidelines, 207 Directive leader, 467 Discretion, managerial, 45E2-1 Distributive justice Perceived fairness of the amount and allocation of rewards among individuals, 442, 443 Diversity in workforce See Workforce diversity Diversity skills training Specialized training to educate employees about the importance of diversity and teach them skills for working in a diverse workplace, 115 Divisional structure An organizational structure made up of separate, semiautonomous units or divisions, 278, 279 strengths and weaknesses of, 277E10-10 Division of labor (job specialization) The breakdown of jobs into narrow and repetitive tasks, 28, 38 Downsizing The planned elimination of jobs in an organization, 328–329 tips for, 329E12-12 Downward communication Communication that flows downward from a manager to employees, 412, 413 Dynamic environment, planning in, 213 Dysfunctional conflicts Conflicts that prevent a group from achieving its goals, 354–355 E East African Community (EAC), 76 E-business strategies, 237 Economic environment, global management in, 80–81 Education, to reduce resistance to change, 158, 159E6-5 GLINDEX Effectiveness Doing the right things, or completing activities so that organizational goals are attained, 8, Efficiency Doing things right, or getting the most output from the least amount of inputs, 8, Effort-performance linkage, 442 Ego strength A personality measure of the strength of a person’s convictions, 131 E-mail customer service and, 419 diagonal communication and, 413 filtering, 409 information overload and, 409–410 issues with, 417–418 vs other communication methods, 408E15-2 workplace privacy and, 500 Emotional intelligence (EI) The ability to notice and to manage emotional cues and information, 386, 387 Emotions Intense feelings that are directed at someone or something, 385 emotional stability, in Big Five Model, 382 in interpersonal communication, 409, 411 Empathy, in EI, 386 Employee assistance programs (EAPs), 503E18-12 Employee empowerment Giving employees more authority (power) to make decisions, 273 entrepreneurs and, 553 Employee engagement When employees are connected to, satisfied with, and enthusiastic about their jobs, 377–378, 379 key factors in, 378E14-2 Employee Free Choice Act, 316 Employee productivity A performance measure of both efficiency and effectiveness, 373 Employee recognition programs Personal attention and expressing interest, approval, and appreciation for a job well done, 449–450 Employees compensation and benefits for, 326, 327–328, 328E12-11 decruitment of, 319–320, 320E12-4 empowering, 474–475, 553 health care costs for, 332 human resource planning and, 318–319 input from, 420, 420E15-5 motivating, 430–451 orientation of, 323–324 pension plan costs for, 333 performance appraisal methods for, 326, 327E12-10 performance management systems for, 326 recruitment of, 319–320, 320E12-4, 551 retaining, 326–328, 551 selecting (See Selection) skills and knowledge provided for, 323–325 training, 324–325 value chain management and, 523–524 Employee theft Any unauthorized taking of company property by employees for their personal use, 500–501, 501E18-11 Encoding Converting a message into symbols, 406, 407 Entrepreneur as leader, 554–555 motivating employees through empowerment, 553 personality characteristics of, 552–553 Entrepreneurial ventures Organizations that are pursuing opportunities, are characterized by innovative practices, and have growth and profitability as their main goals, 537 changes and, stimulating and making, 551–552 competitive advantage and, 542 competitors and, 544–545 controlling issues in, 555–559 demographics and, 542 downturns in, managing, 557–558 employee recruitment in, 551 employee retention in, 551 ethics issues in, 539–540 exiting, 558 feasibility of, 543–545, 544EA-2 financing, 545EA-3 growth in, managing, 555–557, 556EA-5 HRM issues in, 550–551 ideas in, generating and evaluating, 543, 543EA-1, 544 innovation and, importance of continuing, 552 job creation and, 538 leading issues in, 552–555 opportunities in, identifying, 539–542 organizational design and structure, 550 organizing issues in, 547–550 personal life choices and challenges in, 558–559 planning, 539, 546–547 (See also Business plan) process of, 538–539 social responsibility in, 539–540 valuation techniques in, 558 Entrepreneurship The process of starting new businesses, generally in response to opportunities, 537 global, 538 importance of, 538 Environmental assessment, techniques for, 248–251 benchmarking, 251, 252EMP-2 environmental scanning, 248–249 forecasting, 249–251, 250EMP-1 Environmental complexity The number of components in an organization’s environment and the extent of the organization’s knowledge about those components, 49–50 Environmental scanning The screening of large amounts of information to anticipate and interpret changes in the environment, 214–215, 248, 249 Environmental uncertainty The degree of change and complexity in an organization’s environment, 49–50 assessing, 49–50 matrix, 49E2-3 organizational structure and, 276–277 Equal employment opportunity and discrimination laws, 316E12-3 Equal Pay Act, 316E12-3 Equity theory The theory that an employee compares his or her job’s input–outcomes ratio with that of relevant others and then corrects any inequity, 441–442, 442E16-8 Escalation of commitment An increased commitment to a previous decision despite evidence it may have been wrong, 184, 185 Esteem needs A person’s needs for internal factors such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention, 432, 433 Ethical behavior determining factors of, 130–133, 130E5-3 employee selection and, 135 encouraging, 135–139 individual characteristics and, 131 issue intensity and, 133, 133E5-5 job goals and performance appraisal, 137–138 lapses in, managing, 139–140 leadership and, 137, 140, 140E5-9 managers and, 129–135 moral development and, 130–131, 131E5-4 organization’s culture and, 132–133 protective mechanisms and, 139 social audits and, independent, 139 social irresponsibility and, 139–140 structural variables and, 131–132 whistle-blowers and, 140 Ethical communication Communication that includes all relevant information, is true in every sense, and is not deceptive in any way, 420–421 Ethics Principles, values, and beliefs that define what is right and wrong behavior, 130, 131 codes of, 135–136, 136E5-7 in competitor intelligence, 215, 249 dilemmas, process for addressing, 137E5-8 in entrepreneurial ventures, 539–540 international context of, 133–135 in training, 138 See also Ethical behavior Ethics and Compliance Officer Association, 139 Ethnocentric attitude The parochialistic belief that the best work approaches and practices are those of the home country, 71 Euro A single common European currency, 73–74 European Union (EU) A union of 27 European nations created as a unified economic and trade entity, 72–74, 73E3-1 Events End points that represent the completion of major activities in a PERT network, 254, 255 Evidence-based management (EBMgt) The systematic use of the best available evidence to improve management practice, 185 Expectancy theory The theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual, 442–443, 442E16-9 Expected value, 188, 188E7-8 Expert power Power that’s based on expertise, special skills, or knowledge, 473 Exporting Making products domestically and selling them abroad, 79 External analysis, in strategic management process, 227 External collaboration, 295–297 open innovation and, 296, 296E11-5 strategic partnerships and, 296–297 External environment Those factors and forces outside the organization that affect its performance, 46–47 631 632 GLINDEX demographic environment and, 47–48 economic environment and, 47 environmental uncertainty and, 49–50, 49E2-3 jobs and employment and, 48 managers and, effect on, 48–51 stakeholder relationships and, 50–51 Extinction, 392 Extraversion in Big Five Model, 382 in MBTI, 381 F Facebook, 227, 339 Face-to-face communication, 293, 408E15-2, 410, 415, 418 Facilitation, to reduce resistance to change, 159, 159E6-5 Family and Medical Leave Act, 316E12-3 Family-friendly benefits Benefits that accommodate employees’ needs for work–life balance, 330 Fax, 408E15-2, 409, 416 Fayol’s 14 principles of management, 31, 31EMH-3 Feasibility, of entrepreneurial ventures, 543–545, 544EA-2 competitors and, 544–545 feasibility study and, 544, 544EA-2, 545 financing options, 545, 545EA-3 generating and evaluating ideas, 543, 543EA-1 Feasibility study An analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility, 544, 544EA-2, 545 Feedback The degree to which carrying out work activities required by a job results in the individual’s obtaining direct and clear information about his or her performance effectiveness, 439 in interpersonal communication, 409–411 Feedback control Control that takes place after a work activity is done, 494–495, 503E18-12 Feedforward control Control that takes place before a work activity is done, 494–495, 503E18-12 Feeling types, in MBTI, 381 Fiedler contingency model A leadership theory proposing that effective group performance depends upon the proper match between a leader’s style and the degree to which the situation allows the leader to control and influence, 464–466, 465E17-3 Filtering The deliberate manipulation of information to make it appear more favorable to the receiver, 409 Financial control, 495–496 ratios, 496E18-9 Financial goals, 206 Financial reporting, 505 Financing for entrepreneurial ventures, 545EA-3 First-line managers Managers at the lowest level of management who manage the work of nonmanagerial employees, 6, First mover An organization that’s first to bring a product innovation to the market or to use a new process innovation, 238 advantages and disadvantages, 239E9-8 Five forces model, 233, 233E9-5 Flexible work arrangements, 297–299 compressed workweeks, 299 flextime, 299 future, 292 job sharing, 299 telecommuting, 297–298 Flextime (flexible work hours) A scheduling system in which employees are required to work a specific number of hours a week but are free to vary those hours within certain limits, 299 Focus strategy, 234 Follower readiness, in SLT, 466–467 Forecasting effectiveness, 250–251 techniques, 250, 250EMP-1 Forecasts Predictions of outcome, 249 Foreign Corrupt Practices Act (FCPA), 134 Foreign subsidiary Directly investing in a foreign country by setting up a separate and independent production facility or office, 80, 81 Formal communication Communication that takes place within prescribed organizational work arrangements, 412, 413 Formal group, 346, 347E13-1 Formalization How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures, 273 Formal planning, 204 See also Planning Formal planning department A group of planning specialists whose sole responsibility is helping to write organizational plans, 212, 213 Formal presentations, 408E15-2 Forming stage The first stage of group development in which people join the group and then define the group’s purpose, structure, and leadership, 347 Framing bias, 191, 191E7-11 Franchising An organization gives another organization the right to use its name and operating methods, 79 Free market economy An economic system in which resources are primarily owned and controlled by the private sector, 81 Free Trade Area of the Americas (FTAA), 74–75 Functional conflicts Conflicts that support a group’s goals and improve its performance, 354, 355 Functional strategy The strategies used by an organization’s various functional departments to support the competitive strategy, 234, 235 Functional structure An organizational design that groups together similar or related occupational specialties, 278, 279 strengths and weaknesses of, 277E10-10 Fundamental attribution error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others, 389 G Gantt chart A scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time, 253–254, 253EMP-5 Gender differentiation, in national cultures, 84, 84E3-6 in workforce diversity, 106 General administrative theory An approach to management that focuses on describing what managers and what constitutes good management practice, 31, 38 manager’s use of, 32 General Agreement on Tariffs and Trade (GATT), 76 General partnership A form of legal organization in which two or more business owners share the management and risk of the business, 548EA-4, 549 Generational differences in OB, 392–394 Generation Y and, 393–394, 393E14-8 managerial challenges in, 394 Generation X, 106, 318, 393 Generation Y (or Millennials), 48, 106, 318, 393 organizational behavior and, 393–394, 393E14-8 Geocentric attitude A world-oriented view that focuses on using the best approaches and people from around the globe, 72, 73 German laws pertaining to HRM, 317 Global 100 list, 129 Global Compact, 134–135, 134E5-6 Global company (MNC) An MNC that centralizes management and other decisions in the home country, 78, 79 Global entrepreneurship, 538 Global environment business conducted in, 77–80 country of ownership for familiar products and, 70–71 HRM laws, 316–317 international organizations in, 78–80 perspective on, 71–72 trade mechanisms in, 76–77 trading alliances in, regional, 72–76 understanding, 72–77 See also Global management; National culture Global Leadership and Organizational Behavior Effectiveness (GLOBE) The research program that studies cross-cultural leadership behaviors, 82, 83 cross-cultural leadership and, 475–476 dimensions of, 82, 83–84, 84E3-6 Global management, 80–86 in cultural environment, 81–84 cultural intelligence needed for, 85 in economic environment, 80–81 global mind-set needed for, 85, 86E3-7 openness and, 84, 85 in political/legal environment, 80 Global mind-set Attributes that allow a leader to be effective in cross-cultural environments, 85 components of, 86E3-7 Global positioning systems (GPS), 526 Global Reporting Initiative (GRI), 129 Global scanning, 249 Global sourcing Purchasing materials or labor from around the world wherever it is cheapest, 78–79 Global work teams, 361–362 drawbacks vs benefits in, 361E13-11 group member resources in, 361–362 manager’s role in, 362 processes in, 362 structure of, 362 Goals (objectives) Desired outcomes or targets, 205 ethical behavior and, 137–138 management by objectives and, 209–210, 210E8-3 of organizational behavior, 373–374 quality, 528–529 types of, 206 well-written, characteristics of, 210, 210E8-4 GLINDEX Goal setting approaches to, 208–209, 209E8-2 means-ends chain and, 209 steps in, 210–211 traditional, 208–209, 209E8-2 Goal-setting theory The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than easy goals, 435–437, 437E16-5 Grapevine The informal organizational communication network, 414, 415 Graphic rating scale performance appraisal, 327E12-10 Graying workforce, 47, 105–106, 318 Great Recession, 47 Green management Managers consider the impact of their organization on the natural environment, 127 actions, evaluating, 129 approaches to going green, 127–128, 128E5-2 Group Two or more interacting and interdependent individuals who come together to achieve specific goals, 346, 347 development (See Group development, stages of) external conditions imposed on, 348 formal, 346, 347E13-1 member responses, 349 performance and satisfaction in, 348, 349E13-3 structure (See Group structure) tasks, 356–357 turning into effective team, 357–361 vs work team, 358E13-9 See also Work teams Group cohesiveness The degree to which group members are attracted to one another and share the group’s goals, 352, 353 in global work teams, 362 productivity and, 352E13-5 Group development, stages of, 346–348, 347E13-2 adjourning, 348 forming, 347 norming, 347 performing, 348 storming, 347 Group structure, 349–355 cohesiveness of, 352, 352E13-5 conflict management and, 354–356, 355E13-7, 356E13-8 conformity in, 350–351 decision making and, 353–354, 354E13-6 norms in, 350 processes in, 352–353 roles in, 349–350 size of, 352 status systems in, 351–352 Groupthink When a group exerts extensive pressure on an individual to align his or her opinion with others’ opinions, 351 Growth strategy A corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, either through its current business(es) or through new business(es), 229–230 H Halo effect A general impression of an individual based on a single characteristic, 389–390 Harvesting Exiting a venture when an entrepreneur hopes to capitalize financially on the investment in the venture, 558, 559 Hawthorne Studies A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior, 33–34, 38 Health care costs, 332 Health Care Reform Act, 316 Health Insurance Portability and Accountability Act, 316E12-3 Health laws, 316E12-3 Heuristics Rules of thumb that managers use to simplify decision making, 190, 191 Hierarchy of needs theory Maslow’s theory that human needs—physiological, safety, social, esteem, and self-actualization—form a sort of hierarchy, 431–432, 432E16-1 High-involvement work practices Work practices designed to elicit greater input or involvement from workers, 441 High-high leader A leader high in both initiating structure and consideration behaviors, 463 Highly reliable organizations (HROs), 193 High-performance work practices Work practices that lead to both high individual and high organizational performance, 312–313, 313E12-1 Hindsight bias, 191, 191E7-11 Hispanic-Americans in workforce, 47 Hofstede’s five dimensions of national culture, 82, 83E3-5 Holland’s personality-job fit, 386–387, 386E14-5 Horizontal integration, 229 Hostile individuals, 342 Hotlines for employee theft, 501E18-11 ethics, 140 vs other forms of communication, 408E15-2 for workplace violence, 503E18-12 Human relations view of conflict The view that conflict is a natural and inevitable outcome in any group, 354, 355 Human resource management (HRM), 311–333 contemporary issues in, 328–333 costs, 332–333 demographic trends in, 317–318 downsizing, 328–329, 329E12-12 economy’s effect on, 314 in entrepreneurial ventures, 550–551 high-performance work practices and, 312–313, 313E12-1 HR costs, 332–333 importance of, 312–313 labor unions and, 314–315 legal environment of, 315–317, 316E12-3 orientation and, 323–324 process, 312–318 sexual harassment, 329–330 value chain management in, 523–524 work-life balance, 330–332 See also Employees Human resource planning Ensuring that the organization has the right number and kinds of capable people in the right places and at the right times, 318–319 current assessment of, 319 future HR needs, meeting, 319 Human resource variables in innovation, 167E6-10, 169 Human skills The ability to work well with other people individually and in a group, 12–13 Hygiene factors Factors that eliminate job dissatisfaction, but don’t motivate, 434, 435 633 I Idea champion Individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented, 169 Ideas in entrepreneurial ventures, 543, 543EA-1, 544 Immediate corrective action Corrective action that corrects problems at once to get performance back on track, 490, 491 Immediate gratification bias, 190, 191E7-11 Importing Acquiring products made abroad and selling them domestically, 79 Incongruous, entrepreneurial ventures and, 541 Individualism, in national cultures, 83E3-5 Industrial revolution A period during the late eighteenth century when machine power was substituted for human power, making it more economical to manufacture goods in factories than at home, 28, 38 Informal communication Communication that is not defined by the organization’s structural hierarchy, 412, 413 Informational roles Managerial roles that involve collecting, receiving, and disseminating information, 10, 11 Information controls, 497–498 Information overload When information exceeds our processing capacity, 409–410 Information technology (IT), 416–417 chain of command and, 271 future of, 416 managerial communication and, 416–417 networked systems, 416 organizational effects of, 417 wireless capabilities, 417 See also E-mail; Internet Initial public offering (IPO) The first public registration and sale of a company’s stock, 545 Initiating structure The extent to which a leader defines his or her role and the roles of group members in attaining goals, 463 Innovation Taking creative ideas and turning them into useful products or work methods, 166, 167 creativity vs., 166 cultural variables in, 167E6-10, 168–169 culture and, creating, 58 in entrepreneurial ventures, 552 first mover, 238–239, 239E9-8 human resource variables in, 167E6-10, 169 management and, 16 stimulating, 165–169 in strategic management, 238–239, 239E9-8 structural variables in, 166–168, 167E6-10 world’s most innovative companies, 166E6-9 Instrumentality, 443 Integrity, 473 Intellectual abilities, workforce diversity and, 110 Intellectual capital, in global mind-set, 86E3-7 Intellectual property Proprietary information that’s critical to an organization’s efficient and effective functioning and competitiveness, 525 Interactionist view of conflict The view that some conflict is necessary for a group to perform effectively, 354, 355 Internal analysis, in strategic management process, 228 Internal collaboration, 294–295 communities of practice and, 295, 295E11-4 cross-functional teams and, 294 task forces and, 294–295 634 GLINDEX International Monetary Fund (IMF) An organization of 185 countries that promotes international monetary cooperation and provides advice, loans, and technical assistance, 77 International Organization for Standardization (ISO), 129 International organizations, 78–80 for evaluating green management actions, 129 going global, approaches to, 78–80, 79E3-3 types of, 78 Internet challenge of openness and, 85 competitive advantage and, 540–541, 542 competitor intelligence and, 249 customer dialogue and, 530 disabled workers and, 108E4-6 e-business strategies, 237 embedded Web servers and, 526 Generation Y workers and, 398 legal issues and, 418, 525 managing communication and, 417–418 mobile computing and, 301 networked systems and, 416 personal interaction and, 418 as recruiting source, 320E12-4 security issues and, 418, 525 telecommuting and, 297–298 training methods, 325E12-9 wireless capabilities and, 417 workplace privacy and, 500 Interpersonal communication Communication between two or more people, 405 barriers to, 409–411, 411E15-3 effective, 409–411 methods of, 406–409, 408E15-2 process, 406E15-1 Interpersonal demands, 162 Interpersonal roles Managerial roles that involve people and other duties that are ceremonial and symbolic in nature, 10, 11 Intranets, 416, 529 Introverted types, in MBTI, 381 Intuitive decision making Making decisions on the basis of experience, feelings, and accumulated judgment, 184–185 Intuitive types, in MBTI, 381 ISO 9000 A series of international quality management standards that set uniform guidelines for processes to ensure products conform to customer requirements, 129, 528, 529 ISO 14000, 129 Issue intensity, 133, 133E5-5 J Jargon Specialized terminology or technical language that members of a group use to communicate among themselves, 410, 411 Job analysis An assessment that defines jobs and the behaviors necessary to perform them, 318 Job characteristics model (JCM) A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes, 438–440, 439E16-6 Job creation, in entrepreneurship ventures, 538 Job depth The degree of control employees have over their work, 438, 439 Job description A written statement that describes a job, 318 Job design The way tasks are combined to form complete jobs, 438, 439 Job enlargement The horizontal expansion of a job by increasing job scope, 438, 439 Job enrichment The vertical expansion of a job by adding planning and evaluating responsibilities, 438, 439 Job fulfillment, 342 Job goals, ethical behavior and, 137–138 Job involvement The degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance to be important to self-worth, 377 organizational commitment and, 377 Job satisfaction An employee’s general attitude toward his or her job, 374, 375 absenteeism and, 375–376 customer satisfaction and, 376 OCB and, 376–377 productivity and, 375 statistics on, 375 turnover and, 376 workplace behavior and, 377 Job scope The number of different tasks required in a job and the frequency with which those tasks are repeated, 438, 439 Job seniority, workforce diversity and, 110 Job sharing The practice of having two or more people split a full-time job, 299 Job specification A written statement of the minimum qualifications that a person must possess to perform a given job successfully, 318 Joint venture A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose, 80, 81 Judging others, shortcuts used in, 389–390 Judging types, in MBTI, 381 K Karoshi (Japanese stress phenomenon), 162–163 Know-it-all experts, 342 Knowledge resources communication issues in, 418–419 entrepreneurial ventures and, 542 L Labor union An organization that represents workers and seeks to protect their interests through collective bargaining, 314 HRM and, 314–315, 316 Laissez-faire style A leader who lets the group make decisions and complete the work in whatever way it sees fit, 462, 463 Language in interpersonal communication, 410–411 to teach organizational culture, 56 Lateral communication Communication that takes place among any employees on the same organizational level, 413 Leader Someone who can influence others and who has managerial authority, 460, 461 across cultures, 475–476, 475E17-7 charismatic, 470–471 employee oriented, 463 empowerment of, 474–475 entrepreneur as, 554–555 power over, managing, 475–476 production oriented, 463 relationship oriented, 465 substitute for, 476 task oriented, 465 training, 476 trust of, developing, 473–474 visionary, 471 Leader-member exchange theory (LMX) The leadership theory that says leaders create in-groups and out-groups and those in the in-group will have higher performance ratings, less turnover, and greater job satisfaction, 469 Leader-member relations One of Fiedler’s situational contingencies that describes the degree of confidence, trust, and respect employees had for their leader, 465 Leadership A process of influencing a group to achieve goals, 460, 461 charismatic, 470–471 contemporary views of, 469–472 cross-cultural leadership, 475–476, 475E17-7 developing trust, 473–474, 474E17-6 effective, 476 empowering employees, 474–475 ethical behavior and, 137, 140, 140E5-9 leader-member exchange theory, 469 managing power, 472–473 as stressor, 162 team leadership, 471–472, 472E17-5 transformational-transactional leadership, 469–470 in twenty-first century, 472–476 value chain management in, 523 visionary, 471 Leadership theories, 460–469 behavioral, 462–464, 462E17-2 contemporary views of, 469–472 contingency, 464–469 early, 460–464 Fiedler contingency model, 464–466, 465E17-3 path-goal model, 467–469, 468E17-4 situational leadership theory, 466–467 trait, 461, 461E17-1 Leading Management function that involves working with and through people to accomplish organizational goals, cultural effects on, 57E2-9 in entrepreneurial ventures, 552–555 for quality, 527 Lean organization An organization that understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer’s perspective, 530 Learning Any relatively permanent change in behavior that occurs as a result of experience, 390, 391 implications for managers and, 392 operant conditioning and, 390–391 shaping behavior and, 391–392 social learning and, 391 Learning organization An organization that has developed the capacity to continuously learn, adapt, and change, 292–293 advantages/disadvantages of, 289E11-1 GLINDEX Least-preferred coworker (LPC) questionnaire A questionnaire that measures whether a leader is task or relationship oriented, 464–465 Legal (or light green) approach to going green, 128 Legal aspects of workforce diversity, 113–114, 113E4-8 Legal environment of HRM, 80, 315–317, 316E12-3 affirmative action and, 315 in Australia, 317 in Canada, 316–317 in Germany, 317 major HRM laws in, 316E12-3 in Mexico, 317 in U.S., 316 Legal forms of organizations, 547–550, 548EA-4 Legal issues in Internet usage, 418, 525 Legitimate power The power a leader has as a result of his or her position in the organization, 472, 473 Lewin’s three-step change process, 153, 153E6-2 Licensing An organization gives another organization the right to make or sell its products using its technology or product specifications, 79 Life-long learning, 156 Lilly Ledbetter Fair Pay Act, 316E12-3 Limited liability company (LLC) A form of legal organization that’s a hybrid between a partnership and a corporation, 548EA-4, 549 Limited liability partnership (LLP) A form of legal organization consisting of general partner(s) and limited liability partner(s), 548EA-4, 549 Linear programming A mathematical technique that solves resource allocation problems, 257 example of, 257–258, 257EMP-11 graphical solution to, 258EMP-12 Linear thinking style Decision style characterized by a person’s preference for using external data and facts and processing this information through rational, logical thinking, 190, 191 Line authority Authority that entitles a manager to direct the work of an employee, 269 chain of command and, 269E10-4 vs staff authority, 270, 270E10-5 Load chart A modified Gantt chart that schedules capacity by entire departments or specific resources, 254, 254EMP-6, 255 Locus of control The degree to which people believe they are masters of their own fate, 131, 382, 383 Long-term plans Plans with a time frame beyond three years, 207 Low-skilled employees, motivating, 449 Loyalty, 473 M Machiavellianism A measure of the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify means, 383 Management Coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively, 8, approaches to, 28–29, 29EMH-1 (See also Management theories) career opportunities in, 340 early, 28 efficiency and effectiveness of, 8, 8E1-3 functions of, 8–10, 9E1-4 in global environment (See Global management) levels of, 6, 6E1-1 omnipotent view of, 44–45 operations, 516–530 of organizational change, contemporary issues in, 159–165 reality of work and, 18 skills, 12–13, 12E1-6, 13E1-7 symbolic view of, 45 of teams, 345–364 universality of, 17–18, 17E1-9 value chain, 519–525 workforce diversity and, 100E4-2, 101, 110–112, 114 Management by objectives (MBO) A process of setting mutually agreed-upon goals and using those goals to evaluate employee performance, 209–210 steps in, 210E8-3 Management by walking around A term used to describe when a manager is out in the work area interacting directly with employees, 494, 495, 503E18-12 Management information system (MIS) A system used to provide management with needed information on a regular basis, 497 Management science See Quantitative approach Management theories, 28–38, 29EMH-1 behavioral approach, 32–33 classical approach, 29–32 contemporary approaches, 36–38 contingency approach, 37–38, 38MH-8 quantitative approach, 34–35 systems approach, 36–37, 36EMH-7 Manager Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished, 5–6 changing nature of, 13–14, 14E1-8 contemporary model of, 10–12 customer service and, 14–16 as decision maker, 182–194 discretion of, constraints on, 45E2-1 general administrative theory used by, 32 of global work teams, role in, 362 importance of, 4–5 innovation and, 16 organizational behavior used by, 34 organizational culture and, 56–57, 57E2-9 organizations and, 6–8 quantitative approach used by, 45 rewards of challenges of, 18–19, 19E1-10 scientific management used by, 30–31 sustainability and, 16 vs nonmanagerial employees, See also Management Managerial grid A two-dimensional grid for appraising leadership styles, 462E17-2, 463–464 Managerial roles Specific actions or behaviors expected of and exhibited by a manager, 10–12 Manipulation, to reduce resistance to change, 159, 159E6-5 Manufacturing organizations Organizations that produce physical goods, 517 Market approach to going green, 128 Marshall Plan, 77 Mass customization Providing customers with a product when, where, and how they want it, 529–530 Mass production The production of items in large batches, 276, 277 Material artifacts and symbols used to teach organizational culture, 55–56 Matrix structure An organizational structure that assigns specialists from different functional departments to work on one or more projects, 290, 291 advantages/disadvantages of, 289E11-1 example of, 290E11-2 Maximax/maximin choice, 188–189, 189E7-9 MBO performance appraisal, 327E12-10 Means-ends chain An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level, 209 Mechanistic organization An organizational design that’s rigid and tightly controlled, 274, 275 vs organic organizations, 274E10-8 Memos, 408E15-2, 410 Mercosur, 75 Message A purpose to be conveyed, 406, 407 Mexican Federal Labor Law, 317 Mexican laws pertaining to HRM, 317 Microchronometer, 30 Middle managers Managers between the lowest level and top levels of the organization who manage the work of first-line managers, 6, Minimum-wage employees, motivating, 449 Mintzberg’s managerial roles, 10–12, 11E1-5 Mission A statement of an organization’s purpose, 210, 211 identifying, 227, 227E9-2 Modular organization, 291–292 Monolingualism, 71 Moral development, stages of, 130–131, 131E5-4 Motivating jobs, designing, 438–441 job characteristics model for, 438–440 job enlargement for, 438–441 job enrichment for, 438 redesigning approaches to, 440–441, 440E17-7 Motivation The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal, 430–431 of contingent workers, 448–449 current issues in, 445–451 of diverse workforce, 448 economic circumstances and, 445 entrepreneurs and, 553 of low-skilled, minimum-wage employees, 449 managing cross-cultural challenges in, 445–447 motivating unique groups of workers, 447–449 of professionals, 448 rewards programs for, 449–451 Motivation, theories of, 431–437 equity theory, 441–442, 442E16-8 expectancy theory, 442–443, 442E16-9 goal-setting theory, 435–437, 437E16-5 635 636 GLINDEX Herzberg’s two-factor theory, 433–434, 433E16-2, 434E16-3 integrating, 443–445, 444E16-10 Maslow’s Hierarchy of Needs, 431–432, 432E16-1 McClelland’s three-needs theory, 434–435, 435E16-4 McGregor’s Theory X and Theory Y, 432–433 reinforcement theory, 437 Motivation-hygiene theory The motivation theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction, 433 Motivators Factors that increase job satisfaction and motivation, 434, 435 Motor reproduction processes, in social learning, 391 Multidomestic corporation An MNC that decentralizes management and other decisions to the local country, 78, 79 Multinational corporation (MNC) A broad term that refers to any and all types of international companies that maintain operations in multiple countries, 78, 79 Multiperson comparison performance appraisal, 327E12-10 Myers Briggs Type Indicator® (MBTI), 380–382, 381E14-4 N National culture The values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important, 82, 83 American culture and, 82, 82E3-4 differences among countries and, 82 GLOBE framework for assessing, 82, 83–84, 84E3-6 Hofstede’s five dimensions of, 82, 83E3-5 interpersonal communication in, 410–411 personality type differences in, 384 vs organizational culture, 82 National Labor Relations Act, 316 Need for achievement (nAch) The drive to succeed and excel in relation to a set of standards, 434, 435 Need for affiliation (nAff) The desire for friendly and close interpersonal relationships, 434, 435 Need for power (nPow) The need to make others behave in a way that they would not have behaved otherwise, 434, 435 Negative behavior in workplace, 394–395 Negative reinforcement, 392 Network organization An organization that uses its own employees to some work activities and networks of outside suppliers to provide other needed product components or work processes, 291–292 Noise Any disturbances that interfere with the transmission, receipt, or feedback of a message, 406, 407 Nonlinear thinking style Decision style characterized by a person’s preference for internal sources of information and processing this information with internal insights, feelings, and hunches, 190, 191 Nonprogrammed decisions Unique and nonrecurring decisions that require a custom-made solution, 186, 187 vs programmed decision, 187E7-7 Nonresponsive types, 342 Nonverbal communication Communication transmitted without words, 407 Nonverbal cues, 411 Norming stage The third stage of group development, characterized by close relationships and cohesiveness, 347, 349 Norms Standards or expectations that are accepted and shared by a group’s members, 350, 351 North American Free Trade Agreement (NAFTA) An agreement among the Mexican, Canadian, and U.S governments in which barriers to trade have been eliminated, 74–75 Not-for-profit organizations, 5, 17E1-9, 206, 226 Nurturing, in national cultures, 83E3-5 O Obesity, workforce diversity and, 110 Occupational Safety and Health Act (OSHA), 316E12-3 Ohio State studies, 462E17-2, 463 Omnipotent view of management The view that managers are directly responsible for an organization’s success or failure, 44–45 Open-book management A motivational approach in which an organization’s financial statements (the “books”) are shared with all employees, 449 Open innovation Opening up the search for new ideas beyond the organization’s boundaries and allowing innovations to easily transfer inward and outward, 296, 297 benefits/drawbacks of, 296E11-5 Openness to experience, in Big Five Model, 382 in global management, 84, 85 Internet challenges and, 85 trust and, 473 Open system Systems that interact with their environment, 36, 38 Open workplaces Workplaces with few physical barriers and enclosures, 415 Operant conditioning A theory of learning that says behavior is a function of its consequences, 390–391 Operating agreement The document that outlines the provisions governing the way an LLC will conduct business, 549 Operational plans Plans that encompass a particular operational area of the organization, 207 Operations management The transformation process that converts resources into finished goods and services, 516–517 importance of, 517 lean organization and, 529, 530 in manufacturing organizations, 517 mass customization and, 529–530 of productivity, 517–518 quality initiatives in, 527–528 role of, 516–517, 516E19-1 in service organizations, 517 strategic role of, 518–519 technology’s role in, 526 Opportunities Positive trends in the external environment, 227 Organic organization An organizational design that’s highly adaptive and flexible, 274, 275 vs mechanistic organizations, 274E10-8 Organization A deliberate arrangement of people to accomplish some specific purpose, 6, characteristics of, 6–7, 7E1-2 external environment and, 46–51, 46E2-2 managers and, 6–8 Organizational barriers in value chain management, 524–525 Organizational behavior (OB) The study of the actions of people at work, 32, 38, 372, 373 advocates of, early, 32–33, 33EMH-5 attitudes and, 378–380 contemporary issues in, 392–395 focus of, 372–373, 373E14-1 generational differences in, 392–394 goals of, 373–374 Hawthorne Studies and, 33–34 job satisfaction and, 375–378 learning and, 390–392 manager’s use of, 34 negative, in workplace, 394–395 perception and, 387–390 personality and, 380–387 Organizational change Any alteration of people, structure, or technology in an organization, 155 change-capable organizations, 164–165, 165E6-8 contemporary issues in managing, 159–165 employee stress and, 161–164 in organizational culture, 159–160, 160E6-6 in people, 156–157 in structure, 155–156 successful, 164–165 in technology, 156 types of, 155–157, 155E6-3 See also Change process Organizational chart The visual representation of an organization’s structure, 265 Organizational citizenship behavior (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but which promotes the effective functioning of the organization, 373–374 job satisfaction and, 376–377 Organizational commitment The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in that organization, 377 Organizational communication All the patterns, networks, and systems of communication within an organization, 405 direction of communication flow in, 412–413 formal vs informal, 412 networks, 413–414 workplace design and, 414–415 Organizational culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act, 52, 53 changing, 159–160, 160E6-6 control in, adjusting for, 499 cross-cultural leadership in, 475–476, 475E17-7 GLINDEX customer-responsive, creating, 58, 59E2-10 decision making and, 193 dimensions of, 52E2-5 diversity in, 47 environment, global management in, 81–84 (See also National culture) establishing and maintaining, 54–55, 54E2-8 ethical behavior in, 132–133 in global work teams, 362 graying workforce and, 47, 105–106, 318 innovation and, 58, 167E6-10, 168–169 language used to teach, 56 managerial decisions affected by, 56–57, 57E2-9 material artifacts and symbols used to teach, 55–56 openness and, challenges of, 85 rituals used to teach, 55 situational factors in change, understanding, 160 spirituality and, 58–60 stories used to teach, 55 strong vs weak, 52–54, 53E2-7 value chain management in, 524 vs national culture, 82 Organizational design Creating or changing an organization’s structure, 265 adaptive, 287–301 basic, 263–278 boundaryless organization and, 290–292 collaboration in, 293–297 contemporary, 288–293, 289E11-1 contingent workforce and, 299–300 of entrepreneurial ventures, 550 flexible work arrangements and, 297–299 global structural issues in, managing, 301 learning organizations and, 292–293 matrix-project structures in, 290 mechanistic vs organic organizations and, 273–274, 274E10-8 mobile computing and communication in, 300–301 of organizational structure, 264–273, 264–277 purposes of, 264–265, 265E10-1 team structures and, 288–290 today’s challenges in, 300–301 traditional, 277–278, 277E10-10 Organizational development (OD) Change methods that focus on people and the nature and quality of interpersonal work relationships, 156–157 techniques, 157E6-4 Organizational effectiveness A measure of how appropriate organizational goals are and how well those goals are being met, 492, 493 Organizational leadership See Leadership Organizational performance The accumulated results of all the organization’s work activities, 492, 493 controlling for, 491–493 industry and company rankings and, 492–493, 493E18-7 information controls and, 497 measures of, 492–493 organizational effectiveness and, 492 organizational productivity and, 492 tools for, 493–498 in workforce diversity, 100E4-2, 101 Organizational processes The ways that organizational work is done, 522–523 Organizational structure The formal arrangement of jobs within an organization, 265 centralization vs decentralization and, 272–273, 272E10-7 chain of command and, 268–271 contingency factors affecting structural choice and, 274–277 departmentalization and, 266–268, 267E10-3 divisional, 278 environmental uncertainty and, 276–277 formalization and, 273 functional, 278 innovation variables and, 166–168, 167E6-10 simple, 277 size and, 275 span of control and, 271–272, 271E10-6 strategy and, 275 as stressor, 162 technology and, 275–276, 276E10-9 work specialization and, 265–266, 266E10-2 Organization for Economic Cooperation and Development (OECD) An international economic organization that helps its 30 member countries achieve sustainable economic growth and employment, 77 ethics in international context and, 135 Organization for European Economic Cooperation, 77 Organizations, legal forms of, 547–550, 548EA-4 Organizing Management function that involves arranging and structuring work to accomplish the organization’s goals, 9, 265 cultural effects on, 57E2-9 in entrepreneurial ventures, 547–550 purposes of, 265E10-1 for quality, 527 Orientation Introducing a new employee to his or her job and the organization, 323, 324 Orientation, in national cultures future, 83, 84E3-6 in GLOBE framework, 83, 84E3-6 in Hofstede’s framework, 83E3-5 performance, 84, 84E3-6 Overconfidence bias, 190, 191E7-11 P Parochialism Viewing the world solely through your own perspectives leading to an inability to recognize differences between people, 71 Participating to reduce resistance to change, 159, 159E6-5 in SLT, 466 Participative leader, 467 PATH (Program for Appropriate Technology in Health), 141 Path-goal theory A leadership theory that says the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the goals of the group or organization, 467–469, 468E17-4 Patient Protection and Affordable Care Act, 316 Pay-for-performance programs Variable compensation plans that pay employees on the basis of some performance measure, 450–451 Payoff matrix, 188–189, 189E7-9 Pension plan costs, 333 People changing, 156–157 as value chain management obstacle, 525 Perceived organizational support Employees’ general belief that their organization values their contribution and cares about their well-being, 377 Perceiving types, in MBTI, 381 Perception A process by which we give meaning to our environment by organizing and interpreting sensory impressions, 387 attribution theory and, 388–389, 389E14-7 in entrepreneurial ventures, 542 factors that influence, 387, 388E14-6 implications for managers and, 390 judging others and, shortcuts used in, 389–390 stereotyping and, 387, 389 Performance The end result of an activity, 492, 493 Performance appraisal, 326 advantages/disadvantages of, 327E12-10 ethical behavior and, 137–138 Performance management system Establishes performance standards that are used to evaluate employee performance, 326, 327 Performance-reward linkage, 443 Performing stage The fourth stage of group development when the group is fully functional and works on group task, 348, 349 Personal bias in workforce diversity, 110–112, 111E4-7 Personal interaction, 418 Personality The unique combination of emotional, thought, and behavioral patterns that affect how a person reacts to situations and interacts with others, 380, 381 Big Five Model and, 382 in different cultures, 384 emotional intelligence and, 386 emotions and, 384–385 of entrepreneur, 552–553 Holland’s personality-job fit and, 386–387, 386E14-5 implications for managers, 386–387 locus of control and, 382 Machiavellianism and, 383 MBTI and, 380–382, 382E14-4 proactive, 384 resilience in, 384 risk-taking and, 383 self-esteem and, 383 self-monitoring and, 383 Type A and B, 384 PERT network A flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each, 252–253 developing, steps in, 254, 255EMP-7 example of, 255–256EMP-8–9 Physical attractiveness, workforce diversity and, 110 Physiological needs A person’s needs for food, drink, shelter, sexual satisfaction, and other physical needs, 432, 433 Planned economy An economic system in which all economic decisions are planned by a central government, 81 637 638 GLINDEX Planning Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities, 9, 204, 205 approaches to, 212 competitor intelligence and, 214–215 contemporary, 212–215, 258–260 contingency factors in, 211–212 cultural effects on, 57E2-9 in dynamic environment, 213 in entrepreneurial ventures, 539, 546–547 environmental assessment in, 248–251 environmental scanning in, 214–215 issues in, 212–215 as management function, organizational level and, 211, 211E8-5 performance and, 205 project management, 258–259, 259EMP-13 for quality, 527 reasons for, 205 for resource allocation, 251–258 scenario planning, 259–260 techniques, 248–260 Plans Documents that outline how goals are going to be met, 205 developing, 211–212 goals and, 208–211 types of, 207–208, 207E8-1 See also Business plan; Planning Policy A guideline for making decisions, 186, 187 Political environment, in global management, 80 Polycentric attitude The view that the managers in the host country know the best work approaches and practices for running their business, 72, 73 Position power One of Fiedler’s situational contingencies that describes the degree of influence a leader has over activities such as hiring, firing, discipline, promotions, and salary increases, 465 Positive reinforcement, 391–392 Postal mail, 408E15-2 Post-Millennials (or iGeneration), 48 Power, managing, 472–473 Power distance, in national cultures in GLOBE framework, 83, 84E3-6 in Hofstede’s framework, 83E3-5 Preconventional level of moral development, 130, 131E5-4 Principals of management Fundamental rules of management that could be applied in all organizational situations and taught in schools, 31, 38 Fayol’s, 31, 31EMH-3 Taylor’s, 29–30, 30MH-2 Principled level of moral development, 130, 131E5-4 Principles of Scientific Management (Taylor), 29 Privacy Act, 316E12-3 Privacy in workplace, 500 Proactive personality People who identify opportunities, show initiative, take action, and persevere until meaningful change occurs, 384, 385, 553 Proactive perspective of work design An approach to job design in which employees take the initiative to change how their work is performed, 440–441 Problem An obstacle that makes it difficult to achieve a desired goal or purpose, 179 Problem-solving team A team from the same department or functional area that’s involved in efforts to improve work activities or to solve specific problems, 358, 359 Procedural justice Perceived fairness of the process used to determine the distribution of rewards, 442, 443 Procedure A series of sequential steps used to respond to a well-structured problem, 186, 187 Process conflict Conflict over how work gets done, 354, 355 Process production The production of items in continuous processes, 276, 277 Productivity The amount of goods or services produced divided by the inputs needed to generate that output, 492, 493 management of, 517–518 Product replenishment rates, 527 Professionals, motivating, 448 Programmed decision A repetitive decision that can be handled by a routine approach, 186, 187 vs nonprogrammed decision, 187E7-7 Project A one-time-only set of activities that has a definite beginning and ending point in time, 258, 259 Project management The task of getting a project’s activities done on time, within budget, and according to specifications, 258, 259 process, 258–259, 259EMP-13 project manager’s role in, 259 Project structure An organizational structure in which employees continuously work on projects, 290, 291 advantages/disadvantages of, 289E11-1 Psychological capital, in global mind-set, 86E3-7 Publications, 408E15-2 Punishment, 392 Q Qualitative forecasting Forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes, 250, 250EMP-1, 251 Quality The ability of a product or service to reliably what it’s supposed to and to satisfy customer expectations, 527 as competitive advantage, 232 controlling for, 527–528 goals, 528–529 initiatives in operations management, 527–528 organizing and leading for, 527 planning for, 527 Quantitative approach The use of quantitative techniques to improve decision making, 34, 38 manager’s use of, 35 total quality management and, 35, 35EMH-6 Quantitative forecasting Forecasting that applies a set of mathematical rules to a series of past data to predict outcome, 250, 250EMP-1, 251 R Racial/ethnic groups, 102, 102E4-3, 107, 318 Randomness bias, 191, 191E7-11 Range of variation The acceptable parameters of variance between actual performance and the standard, 489–490 Rational decision making Describes choices that are logical and consistent and maximize value, 183 Readiness The extent to which people have the ability and willingness to accomplish a specific task, 466–467 “Ready-aim-fire” culture, 57 Real goals (objectives) Goals that an organization actually pursues, as defined by the actions of its members, 206, 207 Realistic job preview (RJP) A preview of a job that provides both positive and negative information about the job and the company, 321–322 Recruitment Locating, identifying, and attracting capable applicants, 319–320 sources for, 320E12-4 Referent power Power that arises because of a person’s desirable resources or personal traits, 473 Referents The persons, systems, or selves against which individuals compare themselves to assess equity, 442, 443 Regret matrix, 189, 190E7-10 Reinforcement processes, in social learning, 391 Reinforcement theory The theory that behavior is a function of its consequences, 437 Reinforcers Consequences immediately following a behavior, which increase the probability that the behavior will be repeated, 437 Relational perspective of work design An approach to job design that focuses on how people’s tasks and jobs are increasingly based on social relationships, 440, 441 Relationship conflict Conflict based on interpersonal relationships, 354, 355 Religion, workforce diversity and, 109 Renewal strategy A corporate strategy designed to address declining performance, 230, 231 Representation bias, 191, 191E7-11 Resilience An individual’s ability to overcome challenges and turn them into opportunities, 384, 385 Resource allocation, techniques for, 251–258 breakeven analysis, 256, 256EMP-10 budgeting, 252–253, 252EMP-3–4 linear programming, 257–258, 257–258EMP11–12 scheduling, 253–256 Resources The assets of the organization including financial, physical, human, intangible, and structural/cultural, 228, 229, 251 Responsibility The obligation or expectation to perform any assigned duties, 270, 271 Retention processes, in social learning, 391 Retrenchment strategy, 230 Reward power The power a leader has to give positive rewards, 472, 473 Rewards programs, 449–451 employee recognition programs, 449–450 open-book management, 449 pay-for-performance programs, 450–451 Risk A situation in which the decision maker is able to estimate the likelihood of certain outcomes, 187–188 GLINDEX Risk-taking, 341, 383 Rituals used to teach organizational culture, 55 Role Behavior patterns expected of someone occupying a given position in a social unit, 349–350 Role ambiguity When role expectations are not clearly understood, 162, 163 Role conflicts Work expectations that are hard to satisfy, 162, 163 Role demands, 162 Role overload Having more work to accomplish than time permits, 162, 163 Rolling forecasts, 251 Rule An explicit statement that tells managers what can or cannot be done, 186, 187 S Safety laws, 316E12-3 Safety needs A person’s needs for security and protection from physical and emotional harm, 432, 433 Sarbanes-Oxley Act, 139, 505 Satisfice Accept solutions that are “good enough,” 183 Scenario A consistent view of what the future is likely to be, 259 planning, 259–260 Scheduling Detailing what activities have to be done, the order in which they are to be completed, who is to each, and when they are to be completed, 253 breakeven analysis used in, 256, 256EMP10, 257 Gantt chart used in, 253–254, 253EMP-5 linear programming used in, 257–258, 257–258EMP-11–12 load chart used in, 254, 254EMP-6, 255 PERT network analysis used in, 254–256, 255–256EMP-7–9 Scientific management An approach that involves using the scientific method to find the “one best way” for a job to be done, 29, 38 Fayol’s 14 principles of management and, 31, 31EMH-3 general administrative theory and, 31 manager’s use of, 30–31 Taylor’s scientific management principles and, 29–30, 30MH-2 therbligs and, 30 Weber’s bureaucracy and, 31, 32MH-4 S corporation A specialized type of corporation that has the regular characteristics of a C corporation but is unique in that the owners are taxed as a partnership as long as certain criteria are met, 548EA-4, 549 Selection Screening job applicants to ensure that the most appropriate candidates are hired, 321 decision outcomes, 321E12-6 ethical behavior in, 135 realistic job previews in, 323 tools, 322, 322E12-7 validity and reliability in, 322 Selective perception bias, 191, 191E7-11 Self-actualization of needs A person’s need to become what he or she is capable of becoming, 432, 433 Self-awareness, in EI, 386 Self-efficacy An individual’s belief that he or she is capable of performing a task, 436, 437 Self-esteem An individual’s degree of like or dislike for himself or herself, 383 Self-managed work team A type of work team that operates without a manager and is responsible for a complete work process or segment, 347E13-1, 358, 359 Self-management, in EI, 386 Self-monitoring A personality trait that measures the ability to adjust behavior to external situational factors, 383 Self-motivation, in EI, 386 Self-serving bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors, 389 in decision-making, 191, 191E7-11 Selling, in SLT, 466 Sensing types, in MBTI, 381 Service organizations Organizations that produce nonphysical products in the form of services, 517 Service profit chain The service sequence from employees to customers to profit, 504, 505 Sexual harassment Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment, 329, 330 workplace romances, 330 Shades of green approaches to going green, 128 Shaping behavior The process of guiding learning in graduated steps using reinforcement or lack of reinforcement, 391–392 Short-term plans Plans covering one year or less, 207 Silent types, 342 Simple structure An organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization, 277 strengths and weaknesses of, 277E10-10 Single-use plan A one-time plan specifically designed to meet the needs of a unique situation, 208, 209 Situational approach See Contingency approach Situational leadership theory (SLT) A leadership contingency theory that focuses on followers’ readiness, 466–467 Six sigma A quality program designed to reduce defects and help lower costs, save time, and improve customer satisfaction, 528–529 Skill-based pay A pay system that rewards employees for the job skills they can demonstrate, 327, 328 Skill variety The degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents, 438, 439 Slack time The amount of time an individual activity can be delayed without delaying the whole project, 254, 255 Small business An organization that is independently owned, operated, and financed; has fewer than 100 employees; doesn’t necessarily engage in any new or innovative practices, and has relatively little impact on its industry, 537 Social audits, ethical behavior and, 139 Social capital, in global mind-set, 86E3-7 Social entrepreneur An individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches, 140–141 Social irresponsibility, ethical behavior and, 139–140 Socialization The process that helps employees adapt to the organization’s culture, 54–55 Social learning theory A theory of learning that says people can learn through observation and direct experience, 391 Social loafing The tendency for individuals to expend less effort when working collectively than when working individually, 352, 353 in global work teams, 362 Socially responsible investing (SRI) funds, 127 Social media, 227, 291, 339, 416, 418, 426–427 Social needs A person’s needs for affection, belongingness, acceptance, and friendship, 432, 433 Social network structure The patterns of informal connections among individuals within a group, 363–364 Social obligation When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, 124–125 Social responsibility A business’s intention, beyond its legal and economic obligations, to the right things and act in ways that are good for society, 125 arguments for and against, 126–127, 126E5-1 corporate philanthropy and, 141–142 in entrepreneurial ventures, 539–540 ethical lapses and, managing, 139–140 green management and sustainability and, 127–129 social entrepreneurship and, 140–141 volunteering efforts and, employee, 142 vs social obligation and social responsiveness, 124–125 Social responsiveness When a firm engages in social actions in response to some popular social need, 124–125 Social screening Applying social criteria (screens) to investment decisions, 127 Social skills, in EI, 386 Socioeconomic background, workforce diversity and, 110 Socioeconomic view The view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare, 125 Sole proprietorship A form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts, 547, 548EA-4 South Asian Association for Regional Cooperation (SAARC), 76 Southern Common Market, 75 Span of control The number of employees a manager can efficiently and effectively manage, 271 contrasting, 271E10-6 today’s view of, 271–272 Specific plans Plans that are clearly defined and leave no room for interpretation, 207 639 640 GLINDEX Stability strategy A corporate strategy in which an organization continues to what it is currently doing, 230, 231 Staff authority Positions with some authority that have been created to support, assist, and advise those holding line authority, 270, 271 vs line authority, 270, 270E10-5 Stakeholders Any constituencies in the organization’s environment that are affected by an organization’s decisions and actions, 50, 51 approach to going green, 128 managing, 50–51 organizational types, 51E2-4 Standing plans Ongoing plans that provide guidance for activities performed repeatedly, 208, 209 Stated goals (objectives) Official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are, 206, 207 Status A prestige grading, position, or rank within a group, 351–352 in global work teams, 362 Stereotyping Judging a person on the basis of one’s perception of a group to which he or she belongs, 389 Stories used to teach organizational culture, 55 Storming stage The second stage of group development, characterized by intragroup conflict, 347 Strategic alliance A partnership between an organization and a foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities, 79–80 Strategic benefits in workforce diversity, 100E4-2, 101–102 Strategic business units (SBUs) The single independent businesses of an organization that formulate their own competitive strategies, 231 SWOT analysis used to evaluate, 231 Strategic flexibility The ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake, 236, 237 developing, 236E9-7 Strategic goals, 206 Strategic leadership The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization, 235 effective, 235, 235E9-6 need for, 235 Strategic management What managers to develop the organization’s strategies, 224–225 competitive strategies and, 231–234 corporate strategies and, 228–231 customer service strategies and, 237–238 e-business strategies and, 237 importance of, 225–226 innovation strategies and, 238–239, 239E9-8 strategic flexibility and, need for, 236, 236E9-7 strategic leadership and, need for, 235, 235E9-6 strategic management and, 238 Strategic management process A six-step process that encompasses strategic planning, implementation, and evaluation, 226–227, 226E9-1 evaluating results, 228 formulating strategies, 228 identifying mission, 227, 227E9-2 implementing strategies, 228 performing external analysis, 227 performing internal analysis, 228 SWOT analysis and, 226E9-1, 228 Strategic partnerships Collaborative relationships between two or more organizations in which they combine their resources and capabilities for some business purpose, 296–297 Strategic plans Plans that apply to the entire organization and establish the organization’s overall goals, 207 Strategies The plans for how the organization will what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals, 225 See also Strategic management Strengths Any activities the organization does well or any unique resources that it has, 228, 229 Stress The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities, 161 causes of, 161–162 reducing, 163–164 symptoms of, 162–163, 163E6-7 Stressors Factors that cause stress, 161 Strong cultures Organizational cultures in which the key values are intensely held and widely shared, 52–53 changing organizational culture and, 160 vs weak cultures, 52–54, 53E2-7 Structural components, changing, 155–156 Structured problems Straightforward, familiar, and easily defined problems, 186, 187 Stuck in the middle, 234 Students in Free Enterprise (SIFE) survey, 139 Sunk costs error, 191, 191E7-11 Support, to reduce resistance to change, 159, 159E6-5 Supportive leader, 467 Surface-level diversity Easily perceived differences that may trigger certain stereotypes, but that not necessarily reflect the ways people think or feel, 100, 101 Sustainability A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies, 16, 17 of competitive advantage, 232 SWOT analysis An analysis of the organization’s strengths, weaknesses, opportunities, and threats, 228, 229 strategic business units evaluated with, 231 in strategic management process, 226E9-1, 228 Symbolic view of management The view that much of an organization’s success or failure is due to external forces outside managers’ control, 44, 45 System A set of interrelated and interdependent parts arranged in a manner that produces a unified whole, 36, 38 T Task conflict Conflicts over content and goals of the work, 354, 355 Task demands, 162 Task force A temporary committee or team formed to tackle a specific short-term problem affecting several departments, 294–295 Task identity The degree to which a job requires completion of a whole and identifiable piece of work, 438, 439 Task significance The degree to which a job has a substantial impact on the lives or work of other people, 439 Task structure One of Fiedler’s situational contingencies that describes the degree to which job assignments are formalized and structured, 465 Taylor’s scientific management principles, 29–30, 30EMH-2 Team management See Work teams Team structure An organizational structure in which the entire organization is made up of work teams, 289–290 advantages/disadvantages of, 289E11-1 See also Group structure Technical skills Job-specific knowledge and techniques needed to proficiently perform work task, 12, 13 Technology changing, 156 entrepreneurial ventures and, 541–542 generational differences in, 394 mass customization, 529–530 mobile computing and communication, 301 in operations management, 526 organizational structure and, 275–276, 276E10-9 training methods and, 325E12-9 in value chain management, 522 See also Information technology (IT) Telecommuting A work arrangement in which employees work at home and are linked to the workplace by computer, 297–298 Teleconferencing in networked system, 416 as training method, 325E12-9 vs other communication methods, 408E15-2 Telephone communication, 408E15-2 Telling, in SLT, 466 Terrorism, 85 Thematic Apperception Test (TAT), 435E16-4 Theory The assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform, 432–433 Theory Y The assumption that employees are creative, enjoy work, seek responsibility, and can exercise selfdirection, 432–433 Therbligs A classification scheme for labeling basic hand motions, 30, 38 Thinking types, in MBTI, 381 Thinness, workforce diversity and, 110 Threats Negative trends in the external environment, 227 360-degree performance appraisal, 327E12-10 GLINDEX Three needs theory The motivation theory that says three acquired (not innate) needs—achievement, power, and affiliation—are major motives in work, 434–435, 435E16-4 Time management programs, 163 Tipping Point, The (Gladwell), Title VII of Civil Rights Act, 316E12-3 Top managers Managers at or near the upper levels of the organization structure who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization, 6, Total quality management (TQM) A philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations, 35, 38 Trade mechanisms, global, 76–77 IMF and, 77 OECD and, 77 World Bank Group and, 77 WTO and, 76–77 Trading alliances, regional, 72–76 African Union and, 76 ASEAN and, 75–76, 75E3-2 East African Community and, 76 European Union and, 72–74, 73E3-1 NAFTA and, 74–75 SAARC and, 76 Traditional goal setting An approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area, 208 problems with, 208–209, 209E8-2 Traditional organizational designs, 277–278 divisional, 278 functional, 278 simple, 277 strengths and weaknesses of, 277E10-10 Traditional view of conflict The view that all conflict is bad and must be avoided, 354, 355 Training, employee, 324–325 methods of, 325, 325E12-9 types of, 324–325, 325E12-8 Trait theories of leadership, 461, 461E17-1 Transactional leaders Leaders who lead primarily by using social exchanges (or transactions), 469–470 Transformational leaders Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes, 470, 471 Transnational, or borderless, organization An MNC in which artificial geographical barriers are eliminated, 78, 79 Trust The belief in the integrity, character, and ability of a leader, 473 Turnaround strategy, 230 Turnover The voluntary and involuntary permanent withdrawal from an organization, 373 Twitter, 15–16, 404, 416, 418, 421, 497 Two-factor theory The motivation theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction, 433–434, 433E16-2 Type A personality People who have a chronic sense of urgency and an excessive competitive drive, 162, 163 Type B personality People who are relaxed and easygoing and accept change easily, 162, 163 U Uncertainty A situation in which a decision maker has neither certainty nor reasonable probability estimates available, 188–189 Uncertainty avoidance, in national cultures in GLOBE framework, 83, 84E3-6 in Hofstede’s framework, 83E3-5 Unexpected, in entrepreneurial ventures, 541 Unit production The production of items in units or small batches, 276, 277 Unity of command The management principle that each person should report to only one manager, 270, 271 Universality of management The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in organizations no matter where located, 17–18, 17E1-9 University of Iowa studies, 462–463, 462E17-2 University of Michigan studies, 462E17-2, 463 Unstructured problems Problems that are new or unusual and for which information is ambiguous or incomplete, 186, 187 Upward communication Communication that flows upward from employees to managers, 412, 413 V Valence, 443 Value The performance characteristics, features, and attributes, and any other aspects of goods and services for which customers are willing to give up resources, 520, 521 Value chain The entire series of organizational work activities that add value at each step from raw materials to finished product, 520, 521 Value chain management The process of managing the sequence of activities and information along the entire value chain, 519–520, 521 benefits of, 520–521 coordination and collaboration in, 522 cultural attitudes and, 525 employees/human resources, 523–524 goal of, 520 leadership, 523 obstacles to, 524–525, 524E19-3 operations managed by using, 521–525 organizational barriers in, 524–525 organizational culture and attitudes in, 524 organizational processes in, 522–523 people in, 525 required capabilities in, 525 strategy in, 521–524, 521E19-2 technology investment in, 522 Values Basic convictions about what is right and wrong, 131 Values-based management The organization’s values guide employees in the way they their jobs, 132, 133 Variable pay A pay system in which an individual’s compensation is contingent on performance, 327, 328 Venture capitalists External equity financing provided by professionally managed pools of investor money, 545 Verbal intonation An emphasis given to words or phrases that conveys meaning, 407 Vertical integration, 230 Videoconferencing, 408E15-2 in networked system, 416 as training method, 325E12-9 vs other communication methods, 408E15-2 Violence in workplace, 501–503, 503E18-12 Virtual organization An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects, 291 Virtual team A type of work team that uses technology to link physically dispersed members in order to achieve a common goal, 359 Visionary leadership The ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation, 471 Vocational Rehabilitation Act, 316E12-3 Voice-mail, 408E15-2, 416 Volunteering efforts, employee, 142 W Weak cultures, 52–54, 53E2-7, 160 Weaknesses Activities the organization does not well or resources it needs but does not possess, 228, 229 Wealth of Nations, The (Smith), 28 Weber’s bureaucracy, 31, 32EMH-4 Webinars, 416 Wellness programs, 164 Whistle-blowers Individuals who raise ethical concerns or issues to others, 140, 141 White-water rapids metaphor, 153, 154 Wikis, 416, 418 Work councils Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel, 315–316 Worker Adjustment and Retraining Notification Act, 316E12-3 Workforce diversity The ways in which people in an organization are different from and similar to one another, 98–100 age and, 47, 105–106, 318 challenges in managing, 110–112 cultural, 47 deep-level, 100, 101 disabled workers and, 108–109, 108E4-6 employee resource groups and, 115–116 evolution of, 99E4-1 gender and, 106 glass ceiling and, 112 GLBT and, 109–110 global workforce changes and, 103–105 importance of managing, 100 initiatives, 112–116 legal aspects of, 113–114, 113E4-8 mentoring and, 114, 114E4-9 motivation in, 448 organizational growth and, 230 organizational performance benefits in, 100E4-2, 101 people management benefits in, 100E4-2, 101 personal bias and, 110–112, 111E4-7 641 642 GLINDEX population trends and, 102–103, 102E4-3, 104 racial/ethnic groups and, 102, 102E4-3, 107, 318 religion and, 109 skills training in, 115 socioeconomic background and, 110 strategic benefits in, 100E4-2, 101–102 surface-level, 100, 101 top management commitment to, 114 types of, 105–110, 105E4-5 Work–life balance, managing, 330–332 Work–Life Balance Award Act, 316 Workplace concerns, 499–503 employee theft, 500–501, 501E18-11 privacy in workplace, 500 violence in workplace, 501–503, 503E18-12 Workplace misbehavior Any intentional employee behavior that is potentially damaging to the organization or to individuals within the organization, 374, 375 Workplace Relations Bill, 317 Workplace romances, 330 Workplace spirituality A culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community, 58–59 critics of, 60 cultural characteristics of, 60 importance of, 59–60 Work specialization Dividing work activities into separate job tasks, 265 economies and diseconomies of, 266E10-2 today’s view of, 266 Work teams Groups whose members work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills, 357–358, 359 appropriate leadership in, 360 challenges in managing, current, 361–364 effective, characteristics of, 359–361, 360E13-10 entrepreneur as leader of, 554–555 global, 361–362 goals in, 359 good communication in, 360 internal/external support in, 360–361 leadership in, 471–472, 472E17-5 mutual trust in, 360 negotiating skills in, 360 relevant skills in, 359 skills, building, 363 social networks and, understanding, 363–364 types of, 358–359 unified commitment in, 360 vs groups, 358E13-9 See also Groups World Bank Group A group of five closely associated institutions that provides financial and technical assistance to developing countries, 77 World Trade Organization (WTO) A global organization of 153 countries that deals with the rules of trade among nations, 76–77 Written essay performance appraisal, 327E12-10 CHAPTER pages 2, 8, 12, 16, 18, and 19: Courtesy of Lacy Martin; page 4: Juan Silva/Getty Images Inc RF; page 6: AP Wide World Photos; page 10: Paul Beaty/AP Wide World Photos; page 12 (top): Gina Ferazzi/LAT/Newscom; page 15: Newscom; page 23: Erik Jacobs/Redux Pictures MANAGEMENT HISTORY MODULE page 28: (top) Stephen Studd/Stone/ Getty Images, (upper middle) Alfredo Dagli, Orti/Corbis RF, (bottom) Transcendental Graphics/Contributor/Hulton Archive/Getty Images; page 29: Jacques Boyer/Roger-Viollet/The Image Works; page 30: UPI/Corbis-NY; page 31: (top) Jacques Boyer/Roger-Viollet/The Image Works, (bottom) Hulton Archive/Getty Images; page 33: (upper) Newscom, (lower) Courtesy of AT&T Archives and History Center, Warren, NJ; page 34: Bert Hardy/Hulton Archive/Getty Images; page 35: Richard Drew/AP Wide World Photos; page 36: AFP/Photo Frederic J Brown/Newscom; page 38: Newscom CHAPTER pages 42, 47, 48, 51, 55, 61: Courtesy of Dana RobbinsMurray; page 44: George Frey/Contributor/Getty Images, Inc-Liaison; page 50: Bloomberg/Getty Images, Inc-Bloomberg News; page 56: Newscom; page 59: Newscom; page 65: AP Wide World Photos CHAPTER pages 68, 76, 80, 87: Courtesy of Cheryl Trewatha; page 70: Namas Bhojani/The New York Times/Redux Pictures; page 72: © Corbis All rights reserved/Reuters; page 74: Newscom; page 78: Alexander Ryumin/Newscom; page 91: Francois Henry/Redux Pictures CHAPTER pages 96, 101, 109, 116: Courtesy of Kim Scartelli; page 98: Frank Augstein/AP Wide World Photos; page 103: © Corbis All rights reserved/Reuters; page 107: Yuri Kageyama/AP Wide World Photos-Royalty Free; page 112: Dimitrios Kambouris/Getty Images, Inc-Stock Image; page 115: © Corbis All Rights Reserved; page 120: Alexis C Glenn/Newscom CHAPTER pages 122, 126, 130, 132, 137, 142: Courtesy of John Emerman; page 124: Newscom; page 128: Brad Barket/Getty Images IncImage Source Royalty Free; page 129: Laif/Redux Pictures; page 138: Jim Wilson/The New York Times/Redux Pictures; page 141: Gary Reyes/Photoshot Archive Creative; page 147: Seth Wenig/AP Wide World Photos-Royalty Free PhotoEdit Inc.; page 275: Jenny Warburg/Redux Pictures; page 276: Evan Agostini/AP Wide World Photos-Royalty Free; page 283: Paul Sakuma/AP Wide World Photos-Royalty Free CHAPTER 11 pages 286, 291, 292, 295, 298, 302: Courtesy of Richard Townley; page 288: Ryan McVay/Jupiter Images-Stock Image; page 294: Jung Yeon-Je/Newscom; page 298: Newscom; page 300: Daniel Rosenthal/Redux Pictures; page 301: Peter DaSilva/Redux Pictures; page 307: Rob Widdis/Corbus RF CHAPTER 12 pages 310, 318, 319, 326, 330, 333: Courtesy of Jose Quirarte; page 312: Nicole Bengiveno/Redux Pictures; page 317: Steve Ringman/Newscom; page 331: Mark Richards/PhotoEdit Inc.; page 338: Newscom CHAPTER 13 pages 344, 348, 353, 359, 364: Courtesy of Tracy K Tunwall; page 346: Christophe Ena/AP Wide World Photos-Royalty Free; page 350: PhotoEdit Inc.; page 357: Redux Pictures; page 361: Newscom; page 363: Newscom; page 369: Newscom CHAPTER 14 pages 370, 379, 382, 390, 392, 395: Courtesy of Jake Martin; page 372: Newscom; page 374: Corbis RF; page 376: AP Wide World PhotosRoyalty Free; page 380: Newscom; page 393: Newscom; page 400: AP Wide World Photos-Royalty Free CHAPTER 15 pages 402, 406, 410, 417, 421: Courtesy of Glenn A Jones; page 404: Superstock Royalty Free; page 405: Andre J Jackson/Newscom; page 407: Ryan Anson/Newscom; page 415: Gabriel Bouys/Newscom; page 419: Ross D Franklin/AP Wide World Photos-Royalty Free; page 425: AP Wide World Photos-Royalty Free CHAPTER 16 pages 428, 431, 438, 449, 450, 451: Courtesy of Aisha Warren; page 430: Newscom; page 431 (bottom): LiPo Ching/Newscom; page 435: (top left) Bill Aron/PhotoEdit Inc.; page 435: (top right) Bill Aron/PhotoEdit Inc.; page 436: Charly Kurz/Redux Pictures; page 441: Hugh Grannum/Newscom; page 446: Jodi Hilton/Redux Pictures; page 455: Noah Berger/Redux Pictures CHAPTER pages 150, 154, 155, 158, 162, 166, 169: Courtesy of Reginald Lo; page 152: Romeo Guzman/Newscom; page 157: Michael Stravato/Redux Pictures; page 161: Wang Yishu/AP Wide World Photos-Royalty Free; page 164: Geoff Bugbee/Redux Pictures; page 168: Pal Pillai/Newscom; page 174: Orlin Wagner/AP Wide World Photos-Royalty Free CHAPTER 17 pages 458, 461, 466, 470, 472, 473, 477: Courtesy of Keith D Lynn; page 460: Delane B Rouse/AP Wide World Photos-Royalty Free; page 464: Christopher Brown/Redux Pictures; page 469: Philip Hall/ Photoshot Archive Creative-Royalty Free; page 474: Reed Saxon/AP Wide World Photos-Royalty Free; page 482: Ian Gavan/Photoshot Archive Creative-Royalty Free CHAPTER pages 176, 183, 184, 190, 194: Courtesy of Tiffany Eulinger; page 178: John Raoux/AP Wide World Photos-Royalty Free; page 180: Frances M Roberts/Newscom; page 188: Chris Pizzello/AP Wide World Photos-Royalty Free; page 189: Emmanuel Dunand/Newscom; page 199: Paul Drinkwater/Newscom CHAPTER 18 pages 484, 487, 492, 497, 499, 506: Courtesy of Mike Stutzman; page 486: Akihiro Sugimoto/Newscom; page 495: Jim Wilson/Redux Pictures; page 498: Joshua Sudock/Newscom; page 504: Donna McWilliam/AP Wide World Photos-Royalty Free; page 510: Newscom CHAPTER pages 202, 206, 210, 212, 213, 215: Courtesy of Chuck Pick; page 204: Eitan Abramovich/Newscom; page 206: Joel Nito/Newscom; page 208: Ted S Warren/AP Wide World Photos-Royalty Free; page 214: Everett Kennedy Brown/Corbis RF; page 219: Christophe Ena/AP Wide World Photos-Royalty Free CHAPTER 19 pages 514, 517, 519, 524, 526, 528, 530: Courtesy of Andy Pothast; page 516: Lee Jin-man/AP Wide World Photos-Royalty Free; page 519 (top): Stan Honda/Newscom; page 522: Julien Behal/AP Wide World PhotosRoyalty Free; page 529: Richard Baker/Corbis RF; page 534: Henny Ray Abrams/AP Wide World Photos-Royalty Free CHAPTER pages 222, 226, 228, 234, 239: Courtesy of Sid Gokhale; page 224: Toru Yamanaka/Newscom; page 225: Fred R Conrad/Redux Pictures; page 230: Ramin Talaie/Corbis RF; page 232: Richard B Levine/Newscom; page 237: Andy Kropa/Redux Pictures; page 244: Gero Breloer/AP Wide World Photos-Royalty Free CHAPTER 10 pages 262, 272, 274, 279: Courtesy of Cindy Brewer; page 264: AJ Mast/AP Wide World Photos-Royalty Free; page 268: Michael Newman/ END OF CHAPTER ICONS Review and Discussion Questions: Andres Rodriguez/Alamy Images Royalty Free; My Turn to Be a Manager: Jiri Moucka illustrations/Alamy Images Royalty Free; Ethics Dilemma: Konstantinos Kokkinis/Alamy Images Royalty Free; Skills Exercise: Jiri Moucka illustrations/Alamy Images Royalty Free; Working Together: Jiri Moucka illustrations/ Alamy Images Royalty Free 643 ... course for which you’ve purchased this book Key Changes to the 11th Edition Here are some of the main changes we’ve made in the 11th edition: Two new chapters: Managing Diversity and Adaptive Organizational... to thank the following people for their insightful comments and suggestions for the 11th edition and previous editions of Management: Suhail Abboushi, Duquesne State Cheryl Adkins, Longwood College... reflect those changes to help prepare you to manage under the current conditions We’ve written this 11th edition of Management to provide you with the best possible understanding of what it means to