Fundamentals of Management, Tenth Edition
By Ricky W. Griffin
Contents:
Preface. xix
Acknowledgments. xxiii
PART 1 An Introduction to Management
Chapter 1
Understanding the Manager’s Job 1
1-1 An Introduction to Management 3
1-1a Kinds of Managers 4
Levels of Management 4
1-1b Managing in Different Areas of the Organization 5
1-2 Basic Management Functions 6
1-2a Planning and Decision Making 7
1-2b Organizing 7
Tech Watch: “. . . But What Is a Social Media Manager?” 7
1-2c Leading 8
1-2d Controlling 8
1-3 Fundamental Management Skills 8
Technical Skills 8 • Interpersonal Skills 8 • Conceptual Skills 8 • Diagnostic
Skills 9 • Communication Skills 9 • Decision-Making Skills 9 • Time
Management Skills 9
1-3a The Science and the Art of Management 9
The Science of Management 9
Leading the Way: On the Fast Track 10
The Art of Management 11
1-4 The Importance of Theory and History 11
1-4a Why Theory? 11
1-4b Why History? 11
1-5 The Evolution of Management 12
1-5a The Historical Context of Management 12
1-5b The Classical Management Perspective 13
Scientific Management 13 • Administrative Management 14 • The Classical
Management Perspective Today 14
1-5c The Behavioral Management Perspective 15
The Hawthorne Studies 15 • The Human Relations Movement 16 •
Contemporary Behavioral Science in Management 17 • The Behavioral
Management Perspective Today 17
1-5d The Quantitative Management Perspective 17
Management Science 18 • Operations Management 18 • The Quantitative
Management Perspective Today 18
1-6 Contemporary Management Perspectives 19
1-6a The Systems Perspective 19
1-6b The Contingency Perspective 21
1-7 Contemporary Management Issues and Challenges 21
1-7a Contemporary Applied Perspectives 21
1-7b Contemporary Management Challenges 22
Summary of Learning Outcomes and Key Points 24
Discussion Questions 25
Building Effective Interpersonal Skills 26
Building Effective Time Management Skills 27
Skill-Building Personal Assessment 27
Management At Work 29
You Make the Call: Reed Hastings Doesn’t Like Standing Still 30
Chapter 2
The Environments of Organizations and Managers 31
2-1 The Organization’s Environments 33
2-1a The General Environment 33
The Economic Dimension 33 • The Technological Dimension 34 • The Political–
Legal Dimension 34
2-1b The Task Environment 35
Competitors 35 • Customers 35 • Supplier 35 • Regulators 36
Strategic Partners 37
2-1c The Internal Environment 38
Owners 38 • Board of Directors 38 • Employees 38 • Physical Work
Environment 38
Doing Business on Planet Earth: Raising the CSR Bar 39
2-2 The Ethical and Social Environment of Management 40
2-2a Individual Ethics in Organizations 40
Managerial Ethics 40 • Managing Ethical Behavior 41
2-2b Emerging Ethical Issues 42
Ethical Leadership 42 • Corporate Governance 43 • Ethics and Information
Technology 43
2-3 Social Responsibility in Organizations 43
2-3a Arguments for and Against Social Responsibility 43
2-3b Managing Social Responsibility 44
Formal Organizational Dimensions 45 • Informal Organizational Dimensions 45
2-4 The International Environment of Management 46
2-4a Trends in International Business 46
2-4b Levels of International Business Activity 47
Exporting and Importing 47 • Licensing 48 • Strategic Alliances 48 • Direct
Investment 48
2-4c The Context of International Business 48
The Cultural Environment 48 • Controls on International Trade 49 • Economic
Communities 50 • The Role of the GATT and WTO 51
2-5 The Organization’s Culture 51
2-5a The Importance of Organizational Culture 52
2-5b Determinants of Organizational Culture 52
2-5c Managing Organizational Culture 52
Leading the Way: Happy Fit 53
Summary of Learning Outcomes and Key Points 54
Discussion Questions 55
Building Effective Conceptual Skills 55
Building Effective Communication Skills 56
Skill-Building Personal Assessment 56
Management at Work 57
You Make the Call: Turbulence in the Air 58
PART 2 Planning
Chapter 3
Planning and Strategic Management 59
3-1 Planning and Organizational Goals 61
3-1a Organizational Goals 62
Purposes of Goals 62 • Kinds of Goals 63
3-1b Kinds of Organizational Plans 63
Strategic Plan 63 • Tactical Plans 63 • Operational Plans 63
3-2 The Nature of Strategic Management 64
3-2a The Components of Strategy 64
3-2b Types of Strategic Alternatives 64
3-3 Using SWOT Analysis to Formulate Strategy 66
3-3a Evaluating an Organization’s Strengths 66
3-3b Evaluating an Organization’s Weaknesses 67
3-3c Evaluating an Organization’s Opportunities and Threats 68
Tech Watch: Starting Conversations 68
3-4 Formulating Business-Level Strategies 69
3-4a Generic Strategies 69
3-4b Strategies Based on the Product Life Cycle 71
3-5 Formulating Corporate-Level Strategies 72
3-5a Single-Product Strategy 72
3-5b Related Diversification 72
3-5c Unrelated Diversification 73
Leading The Way: The Beauty of Differentiation 74
3-5d Managing Diversification 75
BCG Matrix 75 • GE Business Screen 76
3-6 Tactical Planning 78
3-6a Developing Tactical Plans 78
3-6b Executing Tactical Plans 78
3-7 Operational Planning 79
3-7a Single-Use Plans 79
Programs 79 • Projects 79
3-7b Standing Plans 79
Policies 80 • Standard Operating Procedures 80 • Rules and Regulations 80
3-7c Contingency Planning and Crisis Management 80
Summary of Learning Outcomes and Key Points 83
Discussion Questions 84
Building Effective Time-Management Skills 84
Building Effective Decision-Making Skills 84
Skill-Building Personal Assessment 85
Management at Work 87
You Make the Call: The Lap of Luxury 88
Chapter 4
Managing Decision Making 89
4-1 The Nature of Decision Making 91
4-1a Decision Making Defined 91
4-1b Types of Decisions 92
4-1c Decision-Making Conditions 92
Decision Making under Certainty 92 • Decision Making under Risk 93
Decision Making under Uncertainty 94
4-2 Rational Perspectives on Decision Making 95
4-2a The Classical Model of Decision Making 95
4-2b Steps in Rational Decision Making 95
Recognizing and Defining the Decision Situation 95 • Identifying Alternatives 96
Evaluating Alternatives 97 • Selecting an Alternative 97 • Implementing the
Chosen Alternative 98 • Following Up and Evaluating the Results 98
4-2c Evidence-Based Management 99
4-3 Behavioral Elements in Decision Making 100
4-3a The Administrative Model 100
4-3b Political Forces in Decision Making 101
4-3c Intuition and Escalation of Commitment 101 Intuition 101
A World of Difference: Sometimes Doing the “Right Thing” Can Be Confusing 102
Escalation of Commitment 102
4-3d Risk Propensity and Decision Making 103
4-3e Ethics and Decision Making 103
Doing Business on Planet Earth: Lighting the Stove 104
4-4 Group and Team Decision Making in Organizations 105
4-4a Forms of Group and Team Decision Making 105
Interacting Groups and Teams 105 • Delphi Groups 105 • Nominal Groups 106
4-4b Advantages of Group and Team Decision Making 106
4-4c Disadvantages of Group and Team Decision Making 106
4-4d Managing Group and Team Decision-Making Processes 107
Summary of Learning Outcomes and Key Points 108
Discussion Questions 108
Building Effective Conceptual Skills 109
Building Effective Decision-Making Skills 110
Skill-Building Personal Assessment 110
Management at Work 111
You Make the Call: Sailing the Seas 113
Chapter 5
Entrepreneurship and New Venture Management 114
5-1 The Meaning of Entrepreneurship 116
5-2 The Role of Entrepreneurs, Start-Ups, and New Ventures in Society 117
5-2a Job Creation 117
5-2b Innovation 119
5-2c Importance to Big Business 120
5-3 Strategy for Start-Ups and New Ventures 120
5-3a Choosing an Industry 120
Services 121 • Retailing 121 • Construction 122 • Finance and Insurance 122
Wholesaling 122 • Transportation 122 • Manufacturing 123
5-3b Emphasizing Distinctive Competencies 123
Identifying Niches in Established Markets 124 • Identifying New Markets 124
Leading the Way: Current Affairs in the Electric Vehicle Business 125
First-Mover Advantages 126
5-3c Writing a Business Plan 126
5-3d Entrepreneurship and International Markets 127
5-4 Structure of Start-Ups and New Ventures 127
5-4a Starting the New Business 127
Buying an Existing Business 127 • Starting from Scratch 128
5-4b Financing the New Business 128
Personal Resources 128 • Strategic Alliances 129 • Traditional Lenders 129
Venture Capital Companies 129 • Small-Business Investment Companies 129
SBA Financial Programs 129 • Crowdfunding 130
5-4c Sources of Management Advice 130
Advisory Boards 130 • Management Consultants 130 • The Small Business
Administration 130 • Networking 131
5-4d Franchising 131
Beyond Traditional Business: Taxi Dancing around the Question of Regulation 132
5-5 The Performance of Start-Ups and New Ventures 134
5-5a Trends in Start-Ups and New Ventures 134
Emergence of E-Commerce 135 • Crossovers from Big Business 135
Opportunities for Minorities and Women 135 • Better Survival Rates 135
5-5b Reasons for Failure 136
5-5c Reasons for Success 136
Summary of Learning Outcomes and Key Points 137
Discussion Questions 138
Building Effective Interpersonal Skills 138
Building Effective Conceptual Skills 139
Skill-Building Personal Assessment 139
Management at Work 140
You Make the Call: Putting the Greek into Yogurt 142
PART 3 Organizing
Chapter 6
Organization Structure and Design 143
6-1 The Basic Elements of Organizing 145
6-1a Job Specialization 145
Benefits and Limitations of Specialization 145 • Alternatives to Specialization 146
6-1b Grouping Jobs: Departmentalization 148
Functional Departmentalization 149 • Product Departmentalization 149
Customer Departmentalization 149 • Location Departmentalization 150
6-1c Establishing Reporting Relationships 150
Chain of Command 150 • Span of Management 150 • Tall versus Flat Organizations 150
6-1d Distributing Authority 151
The Delegation Process 151 • Decentralization and Centralization 151
Leading the Way: Feeding the Chicken 152
6-1e Coordinating Activities 153
The Need for Coordination 153 • Structural Coordination Techniques 153
Digital Coordination 154
6-2 The Bureaucratic Model of Organization Design 155
6-3 Situational Influences on Organization Design 156
6-3a Core Technology 157
6-3b Environment 158
A World of Difference: Keeping the Organizational Tools Sharp 158
6-3c Organizational Size and Life Cycle 159
6-4 Basic Forms of Organization Design 160
6-4a Functional (U-Form) Design 160
6-4b Conglomerate (H-Form) Design 161
6-4c Divisional (M-Form) Design 162
6-4d Matrix Design 163
6-4e Hybrid Designs 165
6-5 Emerging Issues in Organization Design 165
6-5a The Team Organization 165
6-5b The Virtual Organization 166
6-5c The Learning Organization 166
Summary of Learning Outcomes and Key Points 167
Discussion Questions 167
Building Effective Conceptual Skills 168
Building Effective Diagnostic Skills 168
Skill-Building Personal Assessment 168
Management at Work 171
You Make the Call: The Stress of Screening 172
Chapter 7
Organization Change and Innovation 173
7-1 The Nature of Organization Change 175
7-1a Forces for Change 175
External Forces 175 • Internal Forces 176
7-1b Planned versus Reactive Change 176
7-2 Managing Change in Organizations 177
7-2a Steps in the Change Process 178
The Lewin Model 178 • A Comprehensive Approach to Change 178
7-2b Understanding Resistance to Change 179
Uncertainty 179 • Threatened Self-Interests 179 • Different Perceptions 180 Feelings of Loss 180
7-2c Overcoming Resistance to Change 180
Participation 180 • Education and Communication 180 • Facilitation 181
Force-Field Analysis 181
7-3 Areas of Organization Change 182
7-3a Changing Organization Structure and Design 182
7-3b Changing Technology and Operations 182
Doing Business on Planet Earth: Toward Zero Waste? 183
7-3c Changing People, Attitudes, and Behaviors 184
7-3d Changing Business Processes 185
The Need for Business Process Change 185 • Approaches to Business Process Change 185
7-3e Organization Development 186
OD Assumptions 186 • OD Techniques 187 • The Effectiveness of OD 188
7-4 Organizational Innovation 189
7-4a The Innovation Process 189
Innovation Development 189 • Innovation Application 189 • Application
Launch 190 • Application Growth 190 • Innovation Maturity 190
Innovation Decline 190
7-4b Forms of Innovation 190
Radical versus Incremental Innovations 191 • Technical versus Managerial
Innovations 191 • Product versus Process Innovations 191
7-4c The Failure to Innovate 192
Lack of Resources 192 • Failure to Recognize Opportunities 193 • Resistance to
Change 193
Tech Watch: Breaking the Mold 193
7-4d Promoting Innovation in Organizations 194
The Reward System 194 • Organization Culture 194 • Intrapreneurship in Larger Organizations 195
Summary of Learning Outcomes and Key Points 195
Discussion Questions 196
Building Effective Decision-Making Skills 197
Building Effective Diagnostic Skills 197
Skill-Building Personal Assessment 198
Management at Work 199
You Make the Call: A Picture Says It All 201
Chapter 8
Managing Human Resources in Organizations 202
8-1 The Environmental Context of Human Resource Management 204
8-1a The Strategic Importance of HRM 204
8-1b The Legal Environment of HRM 205
Equal Employment Opportunity 205 • Compensation and Benefits 206
Labor Relations 207 • Health and Safety 207 • Emerging Legal Issues 207
8-1c Social Change and HRM 208
8-2 Attracting Human Resources 209
8-2a Human Resource Planning 209
Job Analysis 209 • Forecasting Human Resource Demand and Supply 209
Matching Human Resource Demand and Supply 211
8-2b Recruiting Employees 211
Tech Watch: Using Tech to Find Talent 212
8-2c Selecting Employees 213
Application Forms and Resumes 213 • Tests 214 • Interviews 214
Assessment Centers 214 • Other Techniques 214
8-3 Developing Human Resources 215
8-3a Training and Development 215
Assessing Training Needs 215 • Common Training Methods 215 • Evaluation of Training 217
8-3b Performance Appraisal 217
Common Appraisal Methods 217 • Errors in Performance Appraisal 219
8-3c Performance Feedback 220
8-4 Maintaining Human Resources 220
8-4a Determining Compensation 221
Wage-Level Decision 221 • Wage-Structure Decision 221 • Individual Wage Decisions 222
8-4b Determining Benefits 222
Leading the Way: Holding True at Nucor Steel 223
8-4c Career Planning 224
8-5 Managing Labor Relations 224
8-5a How Employees Form Unions 224
8-5b Collective Bargaining 225
8-6 New Challenges in the Changing Workplace 227
8-6a Managing Knowledge Workers 227
The Nature of Knowledge Work 227 • Knowledge Worker Management and Labor Markets 227
8-6b Contingent and Temporary Workers 227
Trends in Contingent and Temporary Employment 227 • Managing Contingent and
Temporary Workers 228
Summary of Learning Outcomes and Key Points 229
Discussion Questions 230
Building Effective Decision-Making Skills 230
Building Effective Technical Skills 231
Skill-Building Personal Assessment 231
Management at Work 233
You Make the Call: No Company for Old-Fashioned Management 234
PART 4 Leading
Chapter 9
Basic Elements of Individual Behavior in Organizations 235
9-1 Understanding Individuals in Organizations 237
9-1a The Psychological Contract 237
9-1b The Person–Job Fit 239
9-1c The Nature of Individual Differences 239
9-2 Personality and Individual Behavior 240
9-2a The “Big Five” Personality Traits 240
9-2b The Myers-Briggs Framework 242
9-2c Other Personality Traits at Work 242
9-2d Emotional Intelligence 244
9-3 Attitudes and Individual Behavior 244
9-3a Work-Related Attitudes 245
Job Satisfaction or Dissatisfaction 245
9-3b Organizational Commitment and Engagement 246
Leading the Way: Happy Hotel Workers at Hilton 246
9-3c Affect and Mood in Organizations 247
9-4 Perception and Individual Behavior 248
9-4a Basic Perceptual Processes 248
Selective Perception 248 • Stereotyping 248
9-4b Perception and Attribution 249
9-5 Stress and Individual Behavior 250
9-5a Causes and Consequences of Stress 251 • Causes of Stress 251
A World of Difference: Differences Can Lead to Stress 252
Consequences of Stress 253
9-5b Managing Stress 254
9-6 Creativity in Organizations 255
9-6a The Creative Individual 255
Background Experiences and Creativity 255 • Personal Traits and Creativity 255
Cognitive Abilities and Creativity 255
9-6b The Creative Process 256
Preparation 256 • Incubation 256 • Insight 256 • Verification 257
9-6c Enhancing Creativity in Organizations 257
9-7 Types of Workplace Behavior 257
9-7a Performance Behaviors 257
9-7b Withdrawal Behaviors 258
9-7c Organizational Citizenship 258
9-7d Dysfunctional Behaviors 259
Summary of Learning Outcomes and Key Points 259
Discussion Questions 260
Building Effective Interpersonal Skills 261
Building Effective Time-Management Skills 261
Skill-Building Personal Assessment 262
Management at Work 264
You Make the Call: Engaging with the Company Garbage 266
Chapter 10
Managing Employee Motivation and Performance 267
10-1 The Nature of Motivation 269
10-1a The Importance of Employee Motivation in the Workplace 269
10-1b Historical Perspectives on Motivation 270
The Traditional Approach 270 • The Human Relations Approach 270
The Human Resource Approach 271
10-2 Content Perspectives on Motivation 271
10-2a The Needs Hierarchy Approach 271
Maslow’s Hierarchy of Needs 272 • The ERG Theory 273
10-2b The Two-Factor Theory 274
10-2c Individual Human Needs 275
10-2d Implications of the Content Perspectives 275
10-3 Process Perspectives on Motivation 276
10-3a Expectancy Theory 276
Effort-to-Performance Expectancy 276 • Performance-to-Outcome
Expectancy 276 • Outcomes and Valences 277 • The Porter-Lawler Extension 278
10-3b Equity Theory 278
10-3c Goal-Setting Theory 279
Goal Difficulty 279 • Goal Specificity 280
10-3d Implications of the Process Perspectives 281
10-4 Reinforcement Perspectives on Motivation 281
Leading the Way: To Reward, or to Punish?. . . That Is the Question 282
10-4a Kinds of Reinforcement in Organizations 282
10-4b Providing Reinforcement in Organizations 283
10-4c Implications of the Reinforcement Perspectives 284
10-5 Popular Motivational Strategies 284
10-5a Empowerment and Participation 284
Areas of Participation 285 • Techniques and Issues in Empowerment 285
10-5b Alternative Forms of Work Arrangements 286
Variable Work Schedules 286 • Flexible Work Schedules 286
Job Sharing 287 • Telecommuting 287
10-6 Using Reward Systems to Motivate Performance 287
10-6a Merit Reward Systems 288
10-6b Incentive Reward Systems 288
Incentive Pay Plans 288 • Other Forms of Incentive 289
Doing Business on Planet Earth: M(otivation) p(er) G(allon) 290
10-6c Team and Group Incentive Reward Systems 290
Common Team and Group Reward Systems 291 • Other Types of Team and Group Rewards 291
10-6d Executive Compensation 292
Standard Forms of Executive Compensation
292 • Special Forms of Executive
Compensation 292 • Criticisms of Executive Compensation 293
10-6e New Approaches to Performance-Based Rewards 294
Summary of Learning Outcomes and Key Points 294
Discussion Questions 295
Building Effective Interpersonal Skills 296
Building Effective Decision-Making Skills 296
Skill-Building Personal Assessment 297
Management at Work 298
You Make the Call: What Makes SAS a Great Place to Work? 300
Chapter 11
Leadership and Influence Processes 301
11-1 The Nature of Leadership 303
11-1a The Meaning of Leadership 303
11-1b Leadership and Management 303
11-1c Leadership and Power 305
Legitimate Power 305 • Reward Power 305 • Coercive Power 305
Referent Power 305 • Expert Power 306 • Using Power 306
11-2 Generic Approaches to Leadership 307
11-2a Leadership Traits 307
11-2b Leadership Behaviors 308
Michigan Studies 308 • Ohio State Studies 308 • Leadership Grid 309
11-3 Situational Approaches to Leadership 311
11-3a LPC Theory 312
Favorableness of the Situation 312 • Favorableness and Leader Style 313
Flexibility of Leader Style 314
11-3b Path–Goal Theory 314
Leader Behavior 314 • Situational Factors 314
11-3c Vroom’s Decision Tree Approach 315
Basic Premises 316 • Decision-Making Styles 316 • Evaluation and Implications 317
11-3d The Leader–Member Exchange Approach 318
11-4 Related Approaches to Leadership 319
11-4a Substitutes for Leadership 319
11-4b Charismatic Leadership 320
A World of Difference: Following Her Own Path 321
11-4c Transformational Leadership 321
11-5 Emerging Approaches to Leadership 322
11-5a Strategic Leadership 322
Doing Business on Planet Earth: Leading Sustainably 322
11-5b Cross-Cultural Leadership 323
11-5c Ethical Leadership 323
11-6 Political Behavior in Organizations 324
11-6a Common Political Behaviors 324
11-6b Impression Management 324
11-6c Managing Political Behavior 325
Summary of Learning Outcomes and Key Points 326
Discussion Questions 327
Building Effective Interpersonal Skills 327
Building Effective Conceptual Skills 328
Skill-Building Personal Assessment 329
Management at Work 330
You Make the Call: Two Bites from the Same Apple 331
Chapter 12
Communication in Organizations 332
12-1 The Interpersonal Nature of Organizations 335
12-1a Interpersonal Dynamics 336
12-1b Outcomes of Interpersonal Behaviors 336
12-2 Communication and the Manager’s Job 337
12-2a The Problems with Communication 337
12-2b A Definition of Communication 338
12-2c The Role of Communication in Management 338
12-2d The Communication Process 339
12-3 Forms of Communication in Organizations 342
12-3a Interpersonal Communication 342
Oral Communication 342 • Nonverbal Communication 342
Written Communication 343 • Choosing the Right Form 344
12-3b Communication in Networks and Work Teams 345
12-3c Organizational Communication 345
Vertical Communication 346 • Horizontal Communication 347
12-3d Digital Communication 347
Formal Information Systems 347
Tech Watch: Thinking (and Talking) on Your Feet 347
Personal Electronic Technology 348
12-4 Informal Communication in Organizations 349
12-4a The Grapevine 350
12-4b Management by Wandering Around 351
12-5 Managing Organizational Communication 352
12-5a Barriers to Communication 352
Individual Barriers 353 • Organizational Barriers 354
12-5b Improving Communication Effectiveness 354
Individual Skills 354
Leading the Way: In Communication We Trust 356
Organizational Skills 357
Summary of Learning Outcomes and Key Points 358
Discussion Questions 358
Building Effective Technical Skills 359
Building Effective Interpersonal Skills 360
Skill-Building Personal Assessment 360
Management at Work 363
You Make the Call: A Big Desk May Say it All 365
Chapter 13
Managing Work Groups and Teams 366
13-1 Groups and Teams in Organizations 368
13-1a Types of Groups and Teams 368
Functional Groups 368 • Informal or Interest Groups 369
Task Groups 370
Doing Business on Planet Earth: Cooking Up Sustainability 371
13-1b Why People Join Groups and Teams 372
Interpersonal Attraction 372 • Group Activities 372 • Group Goals 373
Need Satisfaction 373 • Instrumental Benefits 373
13-1c Stages of Group and Team Development 373
13-2 Characteristics of Groups and Teams 375
13-2a Role Structures 375
Role Ambiguity 375 • Role Conflict 375 • Role Overload 376
13-2b Behavioral Norms 377
Norm Generalization 377 • Norm Variation 377 • Norm Conformity 377
13-2c Cohesiveness 378
Factors That Increase Cohesiveness 378 • Factors That Reduce Cohesiveness 378
Leading the Way: Primed for Power 379
Consequences of Cohesiveness 380
13-2d Formal and Informal Leadership 380
13-3 Interpersonal and Intergroup Conflict 381
13-3a The Nature of Conflict 381
13-3b Causes of Conflict 382
Interpersonal Conflict 382 • Intergroup Conflict 383 • Conflict Between
Organization and Environment 383
13-4 Managing Conflict in Organizations 384
13-4a Stimulating Conflict 384
13-4b Controlling Conflict 385
13-4c Resolving and Eliminating Conflict 386
13-4d Negotiation 386
Summary of Learning Outcomes and Key Points 388
Discussion Questions 388
Building Effective Conceptual Skills 389
Building Effective Communication Skills 389
Skill-Building Personal Assessment 390
Management at Work 391
You Make the Call: An Open Invitation to Innovation 393
PART 5 Controlling
Chapter 14
Basic Elements of Control 395
14-1 The Nature of Control 397
14-1a The Purpose of Control 397
Adapting to Environmental Change 397 • Limiting the Accumulation of Error 398
Coping with Organizational Complexity 398 • Minimizing Costs 399
14-1b Types of Control 399
Areas of Control 399 • Levels of Control 399 • Responsibilities of Control 400
14-1c Steps in the Control Process 401
Establishing Standards 401 • Measuring Performance 402 • Comparing
Performance Against Standards 402 • Considering Corrective Action 403
Beyond Traditional Business: The Intelligent Way to Run a Nonprofit 404
14-2 Operations Control 404
14-2a Preliminary Control 405
14-2b Screening Control 405
14-2c Postaction Control 406
14-3 Financial Control 406
14-3a Budgetary Control 407
Types of Budgets 407 • Developing Budgets 408 • Strengths and Weaknesses of
Budgeting 409
14-3b Other Tools for Financial Control 409
Financial Statements 409 • Financial Audits 410
Tech Watch: Analytics and the Future of Auditing 411
14-4 Structural Control 411
14-4a Bureaucratic Control 412
14-4b Decentralized Control 413
14-5 Strategic Control 413
14-5a Integrating Strategy and Control 413
14-5b International Strategic Control 414
14-6 Managing Control in Organizations 415
14-6a Characteristics of Effective Control 415
Integration with Planning 415 • Flexibility 415 • Accuracy 415
Timeliness 415 • Objectivity 416
14-6b Resistance to Control 416
Overcontrol 416 • Inappropriate Focus 416 • Rewards for Inefficiency 417
Too Much Accountability 417
14-6c Overcoming Resistance to Control 417
Encourage Employee Participation 417 • Develop Verification Procedures 417
Summary of Learning Outcomes and Key Points 418
Discussion Questions 419
Building Effective Time-Management Skills 419
Building Effective Technical Skills 420
Skill-Building Personal Assessment 420
Management at Work 421
You Make the Call: Controlling the Cheesecakes 423
Chapter 15
Managing Operations, Quality, and Productivity 424
15-1 The Nature of Operations Management 426
15-1a The Importance of Operations 426
15-1b Manufacturing and Production Operations 426
15-1c Service Operations 427
15-1d The Role of Operations in Organizational Strategy 427
A World of Difference: Dispensing Hope 428
15-2 Designing Operations Systems 428
15-2a Determining Product-Service Mix 428
15-2b Capacity Decisions 429
15-2c Facilities Decisions 430
Location 430 • Layout 430
15-3 Organizational Technologies 432
15-3a Manufacturing Technology 432
Automation 432 • Computer-Assisted Manufacturing 433 • Robotics 434
15-3b Service Technology 435
15-4 Implementing Operations Systems Through Supply Chain Management 435
15-4a Operations Management as Control 436
15-4b Purchasing Management 437
15-4c Inventory Management 437
Tech Watch: When the Colonel Ran Out of Chicken 438
15-5 Managing Total Quality 439
15-5a The Meaning of Quality 440
15-5b The Importance of Quality 440
Competition 440 • Productivity 441 • Costs 441
15-5c Total Quality Management 441
Strategic Commitment 441 • Employee Involvement 442
Technology 442 • Materials 442 • Methods 442
15-5d TQM Tools and Techniques 442
Value-Added Analysis 442 • Benchmarking 443 • Outsourcing 443
Reducing Cycle Time 443 • ISO 9000:2000 and ISO 14000 444
Statistical Quality Control 444 • Six Sigma 445
15-6 Managing Productivity 445
15-6a The Meaning of Productivity 445
Levels of Productivity 445 • Forms of Productivity 445
15-6b The Importance of Productivity 446
15-6c Productivity Trends 446
15-6d Improving Productivity 447
Improving Operations 447 • Increasing Employee Involvement 448
Summary of Learning Outcomes and Key Points 449
Discussion Questions 449
Building Effective Communication Skills 450
Building Effective Diagnostic Skills 450
Skill-Building Personal Assessment 451
Management at Work 452
You Make the Call: Out Supply-Chaining the King of Supply Chainers 453
Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Name Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .473
Organizational & Product Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .476
Subject Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480