Thomas S. Bateman Mclntire School of Commerce, University of Virginia. Scott A. Snell Darden Graduate School of Business, University of Virginia
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1 Thomas S. Bateman Mclntire School of Commerce, University of Virginia Scott A. Snell Darden Graduate School of Business, University of Virginia McGraw-Hill Irwin
2 Chapter 1 o Managing 2 Managing in the New Competitive Landscape 4 Business operates on a global scale 4 Technology is advancing online and off 6 Knowledge is a valuable resource to be managed 7 Collaboration is toppling performance-restraining boundaries 7 Managing for Competitive Advantage 8 Innovation keeps you ahead of competitors 9 Quality must continuously improve 9 The service economy touches all industries 10 Do it better and faster 11 Low costs help you price to sell 11 The best companies deliver all five advantages 12 The Functions of Management 12 Planning puts you on course to deliver value 13 Organizing brings together the resources you need 14 Leading mobilizes your people 14 Controlling means learning and changing 14 Managing requires all four functions 16 Management Levels and Skills 16 Top managers strategize and lead 16 Middle managers bring strategies to life 17 Frontline managers: the vital link to employees 18 Today's working leaders shoulder broad responsibilities 18 Managers need three broad skills 19 You and Your Career 20 Be both a specialist and a generalist 21 Be self-reliant 21 Be connected 22 Actively manage your relationship with your organization 23 Survive and thrive 23 Women Helping Women One Bead at a Time 16 oo The Environment of Business 26 The Macroenvironment 28 Laws and regulations both protect and restrain organizations 28 The economy affects a company's value 30 Technology is changing every business function 31 Demographics describe your employees and customers 31 Social issues shape attitudes toward your company and its products 32 The Competitive Environment 33 Competitors come from all over the world 33 New entrants arise when barriers to entry are low 35 Some products are substitutes for or complements of yours 35 Suppliers provide your resources 36 Customers ultimately determine your success 37 Environmental Analysis 38 Environmental scanning keeps you aware 39 Scenario development helps you analyze the environment 39 Forecasting predicts your future environment 39 Benchmarking helps you become best in class 40 Responding to the Environment 40 Adapt to the environment 40 Influence your environment 42 Change the boundaries of the environment you're in 42 Three criteria help you choose the best approach 44 Culture and the Internal Environment of Organizations 45 Companies leave many clues to their culture Culture can be managed 47 High Design with a Conscience 32 46
3 Chapter 3 Ethics and Corporate Responsibility 50 It's a big issue 52 It's a personal issue 52 Ethics 54 Ethical systems shape how you apply ethics 54 Business ethics are valued but sometimes lacking 56 Society demands an ethical climate 57 You can learn to make ethical decisions 62 Ethics requires courage 64 Corporate Social Responsibility 65 Do businesses really have a social responsibility? 66 You can do good and do well 67 The Natural Environment 68 Economic activity has environmental consequences 69 Development can be sustainable 69 Some organizations set environmental agendas 70 A New Meaning for "Greenhouses" 70 o Strategic Planning 72 The Planning Process 74 Step 1: Analyze the situation 74 Step 2: Generate alternative goals and plans 75 Step 3: Evaluate goals and plans 76 Step 4: Select goals and plans 76 " Step 5: Implement the goals and plans 76 Step 6: Monitor and control performance 77 Levels of Planning 77 Strategic planning sets a long-term direction 77 Tactical and operational planning support the strategy 78 All levels of planning should be aligned 79 Strategic Planning Process 79 First, establish a mission, vision, and goals 79 Second, analyze external opportunities and threats 81 Third, analyze internal strengths and weaknesses 82 Fourth, conduct a SWOT analysis and formulate strategy 84 Fifth, implement the strategy 88 Finally, control your progress 89 Managerial Decision Making 90 Formal decision making has six stages 90 Human nature erects barriers to good decisions Groups make many decisions 96 Zero Motorcycles Leads the Pack 86 Ciiapter5 OC Entrepreneurship 100 Entrepreneurship 104 Why become an entrepreneur? 104 What does it take to succeed? 105 What business should you start? 105 What does it take, personally? 110 Failure happens, but you can improve the odds of success 113 Planning and resources help you succeed 117 Corporate Entrepreneurship 121 Build support for your ideas 121 Build intrapreneurship in your organization 122 Managing intrapreneurship is risky 122 An entrepreneurial orientation encourages new ideas 122 The Banatao Brothers Build Boards for the Green Wave 108 Organizing for Action 127 Fundamentals of Organizing 128 Differentiation creates specialized jobs 128 Integration coordinates employees' efforts 129 The Vertical Structure 130 Authority is granted formally and informally Hierarchy defines levels of authority 131 Span of control determines a manager's authority 132 Delegation is how managers use others' talents 132 Decentralization spreads decision-making power viii
4 The Horizontal Structure 135 Functional organizations foster efficient experts 135 Divisional organizations develop a customer focus 136 Matrix organizations try to be the best of both worlds 138 Network organizations are built on collaboration 139 Organizational Integration 141 Standardization coordinates work through rules and routines 142 Plans set a common direction 142 Mutual adjustment allows flexible coordination 142 Coordination requires communication 143 Organizational Agility 144 Strategies promote organizational agility 144 Agile organizations focus on customers 148 Technology can support agility 149 Kiva's Network Beaches across the Globe 140 Chapter 7 #o Managing Human Resources 154 Strategic Human Resources Management 156 HR planning involves three stages 157 Staffing the Organization 160 Recruitment helps find job candidates 160 Selection chooses applicants to hire 161 Sometimes employees must be let go 165 Training and Development 167 Training programs include four phases 168 Training options achieve many objectives 168 Performance Appraisal 169 What do you appraise? 170 Who should do the appraisal? 171 How do you give employees feedback? 172 Designing Reward Systems 172 Pay decisions consider the company, position, and individual 173 Incentive pay encourages employees to do their best 173 Executive pay has generated controversy 174 Employees get benefits, too 175 Pay and benefits must meet legal requirements 176 Employers must protect health and safety 176 Labor Relations 176 What labor laws exist? 176 How do employees form unions? 177 How is collective bargaining conducted? 177 What does the future hold? 178 Hiring College Hunks to Haul Junk 158 o Managing the Diverse Workforce 180 Diversity: Past, Present, and Future 182 Diversity shaped America's past 182 Diversity is growing in today's workforce 183 Tomorrow's workers will be more varied than ever 189 Managing Diversity versus Affirmative Action 189 Well-managed diversity and inclusion can become a competitive advantage 191 A diverse and inclusive workforce is challenging to manage 192 Multicultural Organizations 193 How Organizations Can Cultivate a Diverse Workforce 194 Start by securing top managers' commitment 194 Conduct an organizational assessment 195 Attract a diverse group of qualified employees 195 Train employees to understand and work with diversity 196 Retain talented employees 197 Managing Across Borders 198 Global managers need cross-cultural skills 199 National cultures shape values and business practices 201 International management introduces complex ethical challenges 204 BNSF Taps the Strength of Veterans 184 Chapter 9 Leadership 206 What Do We Want from Our Leaders? 208 Vision 209
5 Leading and Managing 210 Good leaders need good followers 211 Power and Leadership 211 Power can arise from five sources 211 Traditional Approaches to Understanding Leadership 213 Certain traits may set leaders apart 213 Certain behaviors may make leaders effective 214 The best way to lead depends on the situation 216 Contemporary Perspectives on Leadership 221 Charismatic leaders inspire their followers 221 Transformational leaders revitalize organizations 222 Authentic leadership adds an ethical dimension 224 Today's organizations offer many opportunities to lead 225 Good leaders need courage 226 Developing Your Leadership Skills 226 How do I start? 226 What are the keys? 227 Majora Carter Leads the Fight for Environmental Justice 222 Understanding People's Needs 238 Maslow arranged needs in a hierarchy 238 Alderfer identified three work-related needs 239 McClelland said managers seek achievement, affiliation, and power 240 Do need theories apply internationally? 241 Designing Motivating Jobs 241 Managers can make work more varied and interesting 242 Herzberg proposed two important job-related factors 243 Hackman and Oldham: meaning, responsibility, and feedback provide motivation 243 To motivate, empowerment must be done right 245 Achieving Fairness 246 People assess equity by making comparisons 246 People who feel inequitably treated try to even the balance 247 Procedures not just outcomes should be fair 247 Job Satisfaction 248 Companies are improving the quality of work life 248 Psychological contracts are understandings of give-and-take 249 Stonyfield Farm Motivates through its Mission 232 Motivating People 228 Motivating for Performance 230 Setting Goals 231 Well-crafted goals are highly motivating 231 Stretch goals help employees reach new heights 232 Goal setting must be paired with other management tools 232 Set your own goals, too 233 Reinforcing Performance 233 Be careful what you reinforce 234 Should you punish mistakes? 234 Feedback is essential reinforcement 236 Performance-Related Beliefs 236 If you try hard, will you succeed? 236 If you succeed, will you be rewarded? 237 All three beliefs must be high 237 Expectancy theory identifies leverage points 237 Ctiaptesr Teamwork 252 GO The Contributions of Teams 254 The New Team Environment 254 Organizations have different types of teams 255 Self-managed teams empower employees 256 How Groups Become Real Teams 258 Group activities shift as the group matures 258 Over time, groups enter critical periods 258 Some groups develop into teams 258 Why do groups sometimes fail? 260 Building Effective Teams 260 Effective teams focus on performance 261 Managers motivate effective teamwork 262 Effective teams have skilled members 262 Norms shape team behavior 263
6 Team members must fill important roles 264 Cohesiveness affects team performance 264 Managers can build cohesiveness and highperformance norms 265 Managing Lateral Relationships 266 Some team members should manage outward 266 Some relationships help teams coordinate with others in the organization 267 Conflicts arise both within and among teams 267 How should you react to conflict? 268 Mediating can help resolve a conflict 270 Conflict isn't always face-to-face 270 Virtual Teams Find the Right Balance at Smart Balance 256 Ciiapter 12 O Communicating 27"2 Interpersonal Communication 274 Communication should flow in two directions 274 Watch out for communication pitfalls 275 Mistaken perceptions cause misunderstandings 276 Communications flow through different channels 277 Electronic media offer flexible, efficient channels 277 Use "richer" media for complex or critical messages 283 Improving Communication Skills 283 Senders can improve their presentations, writing, word choice, and body language 283 Nonverbal signals convey meaning, too 285 Receivers can improve their listening, reading, and observational skills 286 Organizational Communication 288 Downward communication directs, motivates, coaches, and informs 288 Upward communication is invaluable to management 290 Horizontal communication fosters collaboration 291 Informal communication needs attention 292 Boundaryless organizations have no barriers to information flow 293 Twitter as a Lifeline elyrisna Dis Chapter 13 o Managerial Control 294 Spinning Out of Control? 296 Bureaucratic Control Systems 297 Control systems have four steps 297 Bureaucratic control occurs before, during, and after operations 300 Management audits control various systems 302 Budgetary controls compare results with a plan 303 Financial controls include balance sheets and profit and loss statements 306 Bureaucratic control has a downside 308 Managers can make control systems more effective 310 The Other Controls: Markets and Clans 313 Market controls let supply and demand determine prices and profits 314 Clan control relies on empowerment and culture 315 TerraCycle's Cost-Control Formula Is Garbage 304 o Innovating and Changing 318 Deciding to Adopt New Technology 320 Assess organizational needs for technologies 321 Base technology decisions on relevant criteria 322 Know where to get new technologies 325 Organizing for Innovation 327 Who is responsible for new technology innovations? 327 To innovate, unleash creativity 328 Don't let bureaucracy squelch innovation 328 Development projects can drive innovation 329 Job design and human resources make innovation possible 329 Becoming World Class 330 Build organizations for sustainable, long-term greatness 330 Replace the "tyranny of the of with the "genius of the and' 331 Organization development systematically shapes success 331
7 Certain management practices make organizations Shaping the Future 341 great 332 Think about the future 341 Managing Change 332 Create the future ,.. Shape your own future 343 Motivate peop e to change 334 j j *u *»/ p p a Learn and lead the way to your goals 344 A three-stage model suggests ways to manage resistance 335 CompUSA Orders Up a Customer-Focused Future 332 Specific approaches can encourage Notes 346 cooperation 337 Managers have to harmonize multiple changes 339 Credits 383 Managers must lead change 340 Index 385 xii
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