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vi Contents
Contemporary Applied Perspectives 53 Managing Organization Culture 81

Contemporary Management Challenges 54
The Multicultural Environment 82
LEADING THE WAY: A Hooters Girl on the Fast Trends in Diversity and Multiculturalism 82
Track 54 Dimensions of Diversity and Multiculturalism 84
Summary of Learning Outcomes and Organization–Environment Relationships 86
Key Points 56 How Environments Affect Organizations 86
Discussion Questions 57 How Organizations Adapt to Their Environments 89
Building Effective Decision-Making Skills 58 Summary of Learning Outcomes and Key Points 92
Building Effective Interpersonal Skills 58 Discussion Questions 93
Skill-Building Personal Assessment 59 Building Effective Time-Management Skills 93
Management at Work 61 Building Effective Communication Skills 94
YOU MAKE THE CALL: The Lighter Side of Skill-Building Personal Assessment 95
Sustainability 62
Management at Work 96
Endnotes 63
YOU MAKE THE CALL: Putting
Miscommunication in Context 97
PART TWO Understanding the
Environmental Context of Managing Endnotes 98
CHAPTER 3: UNDERSTANDING CHAPTER 4: RESPONDING TO THE

THE ORGANIZATION’S ETHICAL AND SOCIAL
ENVIRONMENT64 ENVIRONMENT100
MANAGEMENT IN ACTION: Putting MANAGEMENT IN ACTION: Management by

Miscommunication in Context 65 Objectionable Behavior 101
The Organization’s Environments 67 Individual Ethics in Organizations 103

Managerial Ethics 104
The External Environment 68
The General Environment 69 LEADING THE WAY: Happy Fit 106
Ethics in an Organizational Context 108
DOING BUSINESS ON PLANET EARTH: Packaging Managing Ethical Behavior 108
Sustainability 71
The Task Environment 73 Emerging Ethical Issues in Organizations 112
Ethical Leadership 112
BEYOND TRADITIONAL BUSINESS: How to Make a
Ethical Issues in Corporate Governance 113
Cause Effective 75
Ethical Issues in Information Technology 113
The Internal Environment 78
Social Responsibility and Organizations 114
Owners 78
Areas of Social Responsibility 114
Board of Directors 79
Employees 79 DOING BUSINESS ON PLANET EARTH: Raising the
Physical Work Environment 79 CSR Bar 117
Arguments For and Against Social Responsibility 118
The Organization’s Culture 80
Organizational Approaches to Social Responsibility 120
The Importance of Organization Culture 80
Determinants of Organization Culture 81 The Government and Social Responsibility 122
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Contents vii
How Government Influences Organizations 122 Competing in a Global Economy 159

How Organizations Influence Government 124 Globalization and Organization Size 159
Management Challenges in a Global Economy 160
Managing Social Responsibility 125
Formal Organizational Actions 125 Summary of Learning Outcomes and
Informal Organizational Actions 126 Key Points 162
Evaluating Social Responsibility 127
Discussion Questions 162
Summary of Learning Outcomes and Key Points 128
Building Effective Technical Skills 163
Building Effective Communication Skills 164
Building Effective Diagnostic and Decision-
Skill-Building Personal Assessment 164
Making Skills 129
Building Effective Interpersonal Skills 130
YOU MAKE THE CALL: Into Africa 167
Endnotes 167
YOU MAKE THE CALL: Management by PART THREE Planning and Decision
Objectionable Behavior 133 Making
Endnotes 133
CHAPTER 6: BASIC ELEMENTS OF
PLANNING AND DECISION
CHAPTER 5: NAVIGATING THE GLOBAL MAKING169
ENVIRONMENT135
MANAGEMENT IN ACTION: Cruise Control 170
MANAGEMENT IN ACTION: Into Africa 136
Decision Making and the Planning Process 172
The Nature of International Business 138
The Meaning of International Business 139 Organizational Goals 174
Trends in International Business 140 Purposes of Goals 174
Managing the Process of Globalization 141 Kinds of Goals 175
Competing in a Global Market 144 Responsibilities for Setting Goals 176
Managing Multiple Goals 178
The Structure of the Global Economy 145
Mature Market Economies and Systems 145 Organizational Planning 178
High-Potential/High-Growth Economies 147 Kinds of Organizational Plans 179
Other Economies 147 Time Frames for Planning 179
The Role of the GATT and the WTO 148
TECH WATCH: Starting Conversations 180
Environmental Challenges of International Responsibilities for Planning 181
Management 149 Contingency Planning and Crisis Management 182
The Economic Environment 149
Tactical Planning 185
DOING BUSINESS ON PLANET EARTH: Cold Developing Tactical Plans 185
Calling 151 Executing Tactical Plans 186
The Political-Legal Environment 152
The Cultural Environment 154 Operational Planning 187
Single-Use Plans 187
A WORLD OF DIFFERENCE: Competing with Local Standing Plans 188
Headhunters 156
viii Contents
BEYOND TRADITIONAL BUSINESS: Secret Unrelated Diversification 221

Operating Procedure 303 189
LEADING THE WAY: The Beauty of
Managing Goal-Setting and Planning Processes 190 Differentiation 222
Barriers to Goal Setting and Planning 190
Implementing Corporate-Level Strategies 223
Overcoming the Barriers 192
Becoming a Diversified Firm 224
Using Goals to Implement Plans 193
Managing Diversification 225
International and Global Strategies 228
Discussion Questions 196 Developing International and Global Strategies 228
Strategic Alternatives for International Business 230
Building Effective Decision-Making Skills 197
Building Effective Time-Management Skills 197
Building Effective Conceptual Skills 234
YOU MAKE THE CALL: Cruise Control 201
Endnotes 202
CHAPTER 7: MANAGING STRATEGY AND
STRATEGIC PLANNING 203 YOU MAKE THE CALL: Stay Hungry 239
MANAGEMENT IN ACTION: Stay Hungry 204 Endnotes 240
The Nature of Strategic Management 206 CHAPTER 8: MANAGING DECISION

The Components of Strategy 206 MAKING AND PROBLEM
Levels of Strategy 207 SOLVING242
Strategy Formulation and Implementation 207
MANAGEMENT IN ACTION: Moneyball on
BEYOND TRADITIONAL BUSINESS: Like It or Steroids 243
Not 208 The Nature of Decision Making 245
Using SWOT Analysis to Formulate Strategy 209 Decision Making Defined 245
Evaluating an Organization’s Strengths 209 Types of Decisions 246
Evaluating an Organization’s Weaknesses 211 Decision-Making Conditions 246
Evaluating an Organization’s Opportunities and Rational Perspectives on Decision Making 249
Threats 212
The Classical Model of Decision Making 249
Formulating Business-Level Strategies 212 Steps in Rational Decision Making 250
Porter’s Generic Strategies 212 Evidence-Based Management 254
The Miles and Snow Typology 214
Behavioral Elements in Decision Making 255
Strategies Based on the Product Life Cycle 216
The Administrative Model 255
Implementing Business-Level Strategies 217 Political Forces in Decision Making 256
Implementing Porter’s Generic Strategies 217
A WORLD OF DIFFERENCE: The Verdict on
Implementing Miles and Snow’s Strategies 218 Diversity 257
Formulating Corporate-Level Strategies 219 Intuition and Escalation of Commitment 258
Single-Product Strategy 220 Risk Propensity and Decision Making 259
Related Diversification 220 Ethics and Decision Making 259

Contents ix
DOING BUSINESS ON PLANET EARTH: Sealing Financing the New Business 288
the Deal 260 Sources of Management Advice 290
Franchising 292
Group and Team Decision Making
in Organizations 261 BEYOND TRADITIONAL BUSINESS: The Dating Service
Forms of Group and Team Decision Making 261 with a Date in Court 293
Advantages of Group and Team Decision
Making 262 The Performance of Start-Ups and New Ventures 294
Disadvantages of Group and Team Decision Trends in Start-Ups and New Ventures 295
Making 263 Reasons for Failure 296
Managing Group and Team Decision- Reasons for Success 296
Making Processes 263
YOU MAKE THE CALL: Leaping to
YOU MAKE THE CALL: Moneyball on Constructions 303
Steroids 269
Endnotes 303
Endnotes 270
CHAPTER 9: MANAGING START-UPS PART FOUR The Organizing Process

AND NEW VENTURES 272
MANAGEMENT IN ACTION: Leaping to ORGANIZING305
Constructions 273
MANAGEMENT IN ACTION: Who’s
The Meaning of Entrepreneurship 275 the Boss? 306
The Role of Entrepreneurs, Start-Ups and New The Elements of Organizing 308
Ventures in Society 276
Designing Jobs 308
Job Creation 277
Job Specialization 308
Innovation 279
Benefits and Limitations of Specialization 309
Importance to Big Business 279
Alternatives to Specialization 310
Strategy for Start-Ups and New Ventures 280
Grouping Jobs: Departmentalization 313
Choosing an Industry 280
Rationale for Departmentalization 313
Emphasizing Distinctive Competencies 284
Common Bases for Departmentalization 313
LEADING THE WAY: Current Affairs in the Electric
TECH WATCH: A Disturbance in the Twelpforce 316
Vehicle Business 285
Writing a Business Plan 286 Establishing Reporting Relationships 317
Entrepreneurship and International Markets 287 Chain of Command 317
Narrow Versus Wide Spans 317
Structure of Start-Ups and New Ventures 287
Tall Versus Flat Organizations 318
Starting the New Business 287
x Contents
Determining the Appropriate Span 319 Business-Level Strategy 349

Organizational Functions 349
Distributing Authority 320
The Delegation Process 321 Basic Forms of Organization Design 349
Decentralization and Centralization 322 Functional (U-Form) Design 350
Conglomerate (H-Form) Design 351
Coordinating Activities 324
Divisional (M-Form) Design 351
The Need for Coordination 324
Matrix Design 352
Structural Coordination Techniques 324
Hybrid Designs 354
DOING BUSINESS ON PLANET EARTH:
Emerging Issues in Organization Design 355
Collaboration, Connection, and Chromosomal
Configuration 326 The Team Organization 355
Electronic Coordination 327 The Virtual Organization 355
The Learning Organization 355
Differentiating Between Positions 327 Special Issues in International Organization
Differences Between Line and Staff 327 Design 356
Administrative Intensity 328
LEADING THE WAY: Feeding the Chicken 357
Building Effective Diagnostic Skills 330
Skill-Building Personal Assessment 331 Building Effective Technical Skills 360
Management at Work 332 Skill-Building Personal Assessment 361
YOU MAKE THE CALL: Who’s the Boss? 334 Management at Work 361
Endnotes 335 YOU MAKE THE CALL: The First Axiom of New
Law 363
CHAPTER 11: MANAGING
ORGANIZATION DESIGN 337 Endnotes 364
MANAGEMENT IN ACTION: The First Axiom of CHAPTER 12: MANAGING

New Law 338 ORGANIZATION CHANGE
AND INNOVATION 366
The Nature of Organization Design 340
MANAGEMENT IN ACTION: Accenturate the
Universal Perspectives on Organization Design 340 Positive 367
Bureaucratic Model 340
Behavioral Model 342 The Nature of Organization Change 369
Forces for Change 369
Situational Influences on Organization Design 343 Planned Versus Reactive Change 370
Core Technology 344
Environment 345 Managing Change in Organizations 371
Steps in the Change Process 371
A WORLD OF DIFFERENCE: Attitude Understanding Resistance to Change 373
Adjustments 346 Overcoming Resistance to Change 374
Organizational Size 347
Organizational Life Cycle 347 Areas of Organization Change 375
Changing Organization Structure and Design 376
Strategy and Organization Design 348 Changing Technology and Operations 376
Corporate-Level Strategy 348 Changing People, Attitudes, and Behaviors 378

Contents xi
Changing Business Processes 378 Maintaining Human Resources 419

Determining Compensation 420
BEYOND TRADITIONAL BUSINESS: Am(ortizing)
Ex(penses) 380 Determining Benefits 421
Organization Development 381 A WORLD OF DIFFERENCE: The Sin of Wages? 422

Career Planning 423
Organizational Innovation 383
The Innovation Process 383 Managing Labor Relations 423
Forms of Innovation 385 How Employees Form Unions 424
The Failure to Innovate 386 Collective Bargaining 424
Promoting Innovation in Organizations 388 New Challenges in the Changing Workplace 426
TECH WATCH: Breaking the Mold 389 Managing Knowledge Workers 426
Contingent and Temporary Workers 427
Building Effective Diagnostic Skills 392
Building Effective Technical Skills 431
YOU MAKE THE CALL: Accenturate the
Positive 396 YOU MAKE THE CALL: Elementary,
Watson 434
Endnotes 397
Endnotes 435
CHAPTER 13: MANAGING HUMAN
RESOURCES IN
ORGANIZATIONS399
PART FIVE The Leading Process
MANAGEMENT IN ACTION: Elementary,

Watson 400
INDIVIDUAL BEHAVIOR IN
ORGANIZATIONS437
The Environmental Context of Human
Resource Management 402 MANAGEMENT IN ACTION:Engaging with the
The Strategic Importance of HRM 402 Company Garbage 438
The Legal Environment of HRM 403 Understanding Individuals in
Social Change and HRM 407 Organizations 440
The Psychological Contract 440
Attracting Human Resources 408
The Person–Job Fit 441
Human Resource Planning 408
The Nature of Individual Differences 442
Recruiting Employees 410
Selecting Employees 411 Personality and Individual Behavior 443
The “Big Five” Personality Traits 443
Developing Human Resources 413
The Myers–Briggs Framework 444
Training and Development 413
Other Personality Traits at Work 445
Performance Appraisal 415
Emotional Intelligence 446
TECH WATCH: What You Can Learn from Math
Attitudes and Individual Behavior 447
Media 416
Work-Related Attitudes 448
Performance Feedback 419
xii Contents
Organizational Commitment and Engagement 448 The Two-Factor Theory 480

Affect and Mood in Organizations 449 Individual Human Needs 481
Implications of the Content Perspectives 482
Perception and Individual Behavior 449
Basic Perceptual Processes 450 Process Perspectives on Motivation 483
Perception and Attribution 451 Expectancy Theory 483
Equity Theory 485
Stress and Individual Behavior 451
Goal-Setting Theory 486
Causes and Consequences of Stress 453
Implications of the Process Perspectives 488
Managing Stress 454
Reinforcement Perspectives on Motivation 488
A WORLD OF DIFFERENCE: The Color of Stress 455
Kinds of Reinforcement in Organizations 489
Creativity in Organizations 457 Providing Reinforcement in Organizations 490
The Creative Individual 457 Implications of the Reinforcement Perspectives 490
TECH WATCH: Picture a Better Mousetrap 458 Popular Motivational Strategies 491
The Creative Process 459 Empowerment and Participation 491
Enhancing Creativity in Organizations 460 Alternative Forms of Work Arrangements 492
Types of Workplace Behavior 460 Using Reward Systems To Motivate

Performance Behaviors 460 Performance 494
Withdrawal Behaviors 461 Merit Reward Systems 494
Organizational Citizenship 461 Incentive Reward Systems 494
Dysfunctional Behaviors 462 Team and Group Incentive Reward Systems 496
Summary of Learning Outcomes and Key Points 462 DOING BUSINESS ON PLANET EARTH: M(otivation)
p(er) G(allon) 497
Discussion Questions 463 Executive Compensation 498
LEADING THE WAY: Compensating for Big Bets 500
Building Effective Time-Management Skills 464 New Approaches to Performance-Based Rewards 501
Skill-Building Personal Assessment 465 Summary of Learning Outcomes and

Key Points 502
YOU MAKE THE CALL: Engaging with the
Company Garbage 470 Building Effective Interpersonal Skills 503
Endnotes 470 Building Effective Decision-Making Skills 504
CHAPTER 15: MANAGING EMPLOYEE Skill-Building Personal Assessment 505

MOTIVATION AND PERFORMANCE 473
Management At Work 505
MANAGEMENT IN ACTION: Let the Games YOU MAKE THE CALL: Let the Games
Begin 474 Begin 508
The Nature of Motivation 476 Endnotes 509
The Importance of Employee Motivation in the
Workplace 476 CHAPTER 16: MANAGING LEADERSHIP AND
Historical Perspectives on Motivation 477 INFLUENCE PROCESSES 511
Content Perspectives on Motivation 478 MANAGEMENT IN ACTION: Leaders of Oil
The Needs Hierarchy Approach 478 Repute 512

Contents xiii
The Nature of Leadership 514

CHAPTER 17: MANAGING INTERPERSONAL
The Meaning of Leadership 514
RELATIONS AND
Leadership and Management 514 COMMUNICATION548
Leadership and Power 515
MANAGEMENT IN ACTION: Buzz Words 549
BEYOND TRADITIONAL BUSINESS:
Underdevelopment in the Nonprofit Sector 516 The Interpersonal Nature of Organizations 551
Interpersonal Dynamics 551
Generic Approaches To Leadership 519
Outcomes of Interpersonal Behaviors 552
Leadership Traits 519
Leadership Behaviors 519 Communication and the Manager’s Job 553
A Definition of Communication 553
Situational Approaches To Leadership 522
The Role of Communication in Management 554
LPC Theory 523
The Communication Process 554
Path–Goal Theory 525
Vroom’s Decision Tree Approach 527 Forms of Communication in Organizations 556
The Leader–Member Exchange Approach 530 Interpersonal Communication 556
Communication in Networks and Work Teams 557
Related Approaches To Leadership 531
Organizational Communication 558
Substitutes for Leadership 531
Digital Communication 559
Charismatic Leadership 532
Transformational Leadership 532 TECH WATCH: Thinking (and Talking) on Your
Feet 560
Emerging Approaches To Leadership 533
Strategic Leadership 533 Informal Communication in Organizations 562
Cross-Cultural Leadership 533 The Grapevine 562
Ethical Leadership 534 Management by Wandering Around 564
Nonverbal Communication 565
A WORLD OF DIFFERENCE: High Tech Does the
Math 534 Managing Organizational Communication 566
Barriers to Communication 566
Political Behavior In Organizations 535
Improving Communication Effectiveness 568
Common Political Behaviors 536
Impression Management 536 LEADING THE WAY: In Communication We Trust 570
Managing Political Behavior 537
Summary of Learning Outcomes and Key
Points 538 Discussion Questions 572
Discussion Questions 538 Building Effective Technical Skills 573
Building Effective Interpersonal Skills 539 Building Effective Interpersonal Skills 573
Building Effective Conceptual Skills 540 Skill-Building Personal Assessment 574

Management At Work 542

YOU MAKE THE CALL: Buzz Words 577
Endnotes 577
YOU MAKE THE CALL: Leaders of Oil
Repute 545
Endnotes 545
xiv Contents
CHAPTER 18: MANAGING WORK

PART SIX The Controlling Process
GROUPS AND TEAMS 579
MANAGEMENT IN ACTION: Promoting the Cause
CONTROL612
of Diversity 580
MANAGEMENT IN ACTION: Metric Tons and
Groups and Teams in Organizations 582 Nonfinancial Metrics 613
Types of Groups and Teams 582
The Nature of Control 615
DOING BUSINESS ON PLANET EARTH: Cooking Up The Purpose of Control 615
Sustainability 585
Types of Control 617
Why People Join Groups and Teams 586
Steps in the Control Process 619
Stages of Group and Team Development 587
BEYOND TRADITIONAL BUSINESS: The Intelligent
Characteristics of Groups and Teams 589 Way to Run a Nonprofit 622
Role Structures 589
Behavioral Norms 591 Operations Control 623
Cohesiveness 592 Preliminary Control 623
Screening Control 624
LEADING THE WAY: Primed for Power 594 Postaction Control 624
Formal and Informal Leadership 595
Financial Control 625
Interpersonal and Intergroup Conflict 596 Budgetary Control 625
The Nature of Conflict 596 Other Tools for Financial
Causes of Conflict 597 Control 628
Managing Conflict in Organizations 599 Structural Control 629
Stimulating Conflict 599
Controlling Conflict 600 DOING BUSINESS ON PLANET EARTH: How Do
Investors Rest Assured? 630
Resolving and Eliminating Conflict 601
Bureaucratic Control 631
Negotiation 602
Decentralized Control 632
Strategic Control 632
Discussion Questions 604 Integrating Strategy and Control 632
Building Effective Conceptual Skills 604 International Strategic Control 633
Building Effective Communication Skills 605 Managing Control in Organizations 634

Characteristics of Effective Control 634
Resistance to Control 635
Management at Work 606 Overcoming Resistance to Control 636
YOU MAKE THE CALL: Promoting the Cause of Summary of Learning Outcomes and
Diversity 609 Key Points 637
Endnotes 610 Discussion Questions 638

Contents xv
Building Effective Time-Management Purchasing Management 658

Skills 639 Inventory Management 658
Building Effective Technical Skills 639 Managing Total Quality 659

The Meaning of Quality 659
The Importance of Quality 660
BEYOND TRADITIONAL BUSINESS: Reach Out and
YOU MAKE THE CALL: Metric Tons and Give Someone a Quality Touch 661
Nonfinancial Metrics 643 Total Quality Management 662
TQM Tools and Techniques 664
Endnotes 644
Managing Productivity 666
CHAPTER 20: MANAGING OPERATIONS, The Meaning of Productivity 666
QUALITY, AND The Importance of Productivity 667
PRODUCTIVITY645 Productivity Trends 667
Improving Productivity 668
MANAGEMENT IN ACTION:What to Do When
Workers Wonder What Happens Next 646 TECH WATCH: Is Glassdoor Cracked? 670
The Nature of Operations Management 648 Summary of Learning Outcomes and Key Points 671
The Importance of Operations 648
Manufacturing and Production Discussion Questions 671
Operations 649
Building Effective Communication Skills 672
Service Operations 649
The Role of Operations in Organizational Building Effective Diagnostic Skills 673
Strategy 650
Designing Operations Systems 650
Determining Product-Service Mix 650
Capacity Decisions 651 YOU MAKE THE CALL: What to Do When Workers
Facilities Decisions 651 Wonder What Happens Next 676
Organizational Technologies 653 Endnotes 677

Manufacturing Technology 653
Name Index 679
Service Technology 656
Implementing Operations Systems Through

Organization and Product Index 683
Supply Chain Management 657 Subject Index 689
Operations Management as Control 657
PREFACE
Since the publication of its first edition in 1984, over two million students at hundreds
of colleges and universities on five continents have used Management in preparation
for their careers in business. In this twelfth edition, I have retained all the elements that
have contributed to the book’s success in the past while also taking a clear look toward the
future—the future of business, of management, and of learning.
Writing a survey book poses a number of challenges. First, because it is a survey, it has to
be comprehensive. Second, it has to be accurate and objective. Third, because management
is a real activity, the book has to be relevant. Fourth, it has to be timely and up-to-date. And
fifth, it must be as interesting and as engaging as possible. Feedback on previous editions of
the text has always suggested that the book meets and exceeds these goals. In this edition,
I think these goals have been met even more effectively.
I believe that current and previous users of Management will be pleased with how we
have retained the essential ingredients of a comprehensive management textbook while
adding a variety of new elements and perspectives. I also believe that those new to this
edition will be drawn to the solid foundations of management theory and practice combined
with new and exciting material.
Highlights and Improvements

in the Twelfth Edition
The twelfth edition of Management is a substantial revision of the earlier work. Rather than
simply adding the “hot topics” of the moment, I continue to thoroughly revise this book
with the long-term view in mind. There are significant revisions of all chapters; an increased
emphasis on the service sector, ethics, global management, and information technology; and
an integrated organization of chapters. The book has also been streamlined to an economical
20 chapters while maintaining its comprehensive coverage. These changes reflect what I
believe, and what reviewers and employers have confirmed, students will need to know as
they enter a brand new world of management. In addition, several integrated pedagogical
features such as “Manager’s Checklist” will also prove to be invaluable.
Revisions in the Twelfth Edition

While the twelfth edition represents a comprehensive revision of the previous edition, there
are also a number of specific changes that have been made. These include:
1. The text has been revised in many places to reflect on and discuss the uncertain fluctua-
tions in the global economy and how those fluctuations affect managers.
2. The text also covers the continued unrest in the Middle East and its implications for
business.
3. All data and statistics related to small business, international business, unionization,
executive compensation, and other areas of business have been updated to the most cur-
rent information available.
xvii
xviii Preface
4. All of the chapter opening cases (“Management in Action”) are new.

5. All of the chapter closing cases (“Management at Work”) are new.
6. The twelfth edition includes a total of 40 all-new boxed features (two per chapter).
7. There are over 150 new examples in the twelfth edition. In addition, those examples
retained from the previous edition have all been checked for currency and continued
applicability.
8. The latest research on international business, entrepreneurship, strategic management,
decision making, organization design, organization change, individual behavior, leader-
ship, teams, motivation, control, information technology, productivity, and quality man-
agement has been cited and integrated throughout the text.
9. All supplements have been updated to match these text changes, including the Course-
Mate website.
Integrated Coverage
Many textbooks set certain material off from the rest of the text in a separate section at the
end of the book or a website called “Emerging Trends,” “Special Challenges,” or something
similar. New and emerging topics, and other material that doesn’t easily fit anywhere else,
are covered in such a section. Unfortunately, by setting those topics apart in this way, the
material often gets ignored or receives low-priority treatment.
But I decided several editions back that if this material was really worth having in the
book at all, it needed to be fully merged with the core material. Thus, all material—both
traditional and contemporary—is integrated throughout the text in order to provide more
uniform and cohesive coverage of the entire field of management. This framework also
helps to streamline the book’s overall organization into six logical and symmetrical parts.
Because reviewers and students have responded so favorably to this approach, it has been
retained in the twelfth edition. Furthermore, cross-referencing strengthens the integrated
coverage throughout the text.
Logical Chapter Organization

This integrated approach to management also results in a logical and very effective
chapter organization. Part 1 introduces the field of management, while Part 2 focuses on
the environment of management. The remaining four parts cover the basic managerial
functions of planning and decision making, organizing, leading, and controlling.
Features of the Book

Basic Themes
Several key themes are prominent in this edition of Management. One critical theme is the
ethical scrutiny under which managers work today. While the book has always included
substantial coverage of ethics and social responsibility, even more attention has been devoted
this time to topics such as corporate governance, ethical leadership, and the proper role
of auditing. Another continuing theme is the global character of the field of management,
which is reinforced throughout the book by examples and cases. A third key theme, digital
technology, is integrated throughout the book. Still another theme is the balance of theory
and practice: Managers need to have a sound basis for their decisions, but the theories that
provide that basis must be grounded in reality. Throughout the book I explain the theoretical
frameworks that guide managerial activities and provide illustrations and examples of how
and when those theories do and do not work. A fifth theme is that management is a generic

Preface xix
activity not confined to large businesses. I use examples and discuss management in both
small and large businesses as well as in not-for-profit organizations.
A Pedagogical System That Works

The pedagogical elements built into Management, Twelfth Edition, continue to be effective
learning and teaching aids for students and instructors.
• Learning outcomes preview key themes at the start of every chapter. Key terms and con-
cepts are highlighted in color and defined in the margin near where they are discussed.
Effective figures, tables, and photographs with their own detailed captions help bring
the material to life.
• A new feature in this edition is “Manager’s Checklist.” Each major section in every
chapter concludes with one to four bullet points that succinctly summarize the major
take-aways from that section. These are designed to capture the essential points from
that section that are most relevant to current and future managers.
• Three kinds of questions at the end of every chapter are designed to test different lev-
els of student understanding. “Questions for Review” ask students to recall specific
information, “Questions for Analysis” ask students to integrate and synthesize material,
and “Questions for Application” ask students to apply what they’ve learned to their own
experiences.
• Each chapter also includes useful skill-development exercises. These exercises give stu-
dents insight into how they approach various management situations and how they can
work to improve their management skills in the future. The exercises are derived from
the overall managerial skills framework developed in Chapter 1. For this edition, many
of the exercises were replaced or substantially revised.
• Finally, and also new to this edition, each chapter also includes a Skill-Building Per-
sonal Assessment. These self-assessments give students insights into their individual
strengths, weaknesses, and perspectives that are relevant to them as current or future
managers.
Applications That Keep Students Engaged

To fully appreciate the role and scope of management in contemporary society, it is
important to see examples and illustrations of how concepts work in the real world. I rely
heavily on fully researched examples to illustrate real-world applications. They vary in length,
and all were carefully reviewed for their timeliness. To give the broadest view possible,
I include examples of both traditional management roles and nontraditional roles; profit-
seeking businesses and nonprofits; large corporations and small businesses; manufacturers
and services; and international and U.S. situations. Furthermore, in this edition I have
developed a better balance of large and established businesses (such as Home Depot, Coca-
Cola, Boeing, Intel, and General Electric) and new, emerging businesses (such as Google,
Starbucks, Facebook, and Urban Outfitters).
Other applications include:
• Opening incidents at the beginning of every chapter. These vignettes, titled
“Management in Action,” draw the student into the chapter with a real-world scenario
that introduces a particular management theme. Highlights include American Apparel,
Harley Davidson in Africa, the Hunger Games movies, the Houston Astros baseball
team, and many more.
• A companion end-of-chapter feature called “You Make the Call.” This feature is tied
back to the chapter-opening incident; it requires the student to play the role of a consultant,
xx Preface
a manager, or other stakeholder in the organization featured earlier. Students are asked
to comment, critique, or make suggestions about how well the business is doing and/or
what it needs to do differently.
• Call-out quotations. Spread throughout each chapter, these quotations provide real in-
sights into how managers and other experts see the world of business as it relates to the
topic at hand.
• Boxed features. Each chapter includes two boxed features. These boxes are intended
to depart briefly from the flow of the chapter to highlight or extend especially interest-
ing or emerging points and issues. There are five types of featured boxes represented
throughout the text:
A World of Difference (the role of diversity in organizations)
Tech Watch: (the role and impact of technology in business)
Leading the Way (the role and importance of leadership in business)
Doing Business on Plant Earth (sustainability)
Beyond Traditional Business (management in nonbusiness organizations)
• End-of-chapter cases. Each chapter concludes with a detailed case study, called
“Management at Work,” written especially for the context of this book. These cases
represent companies familiar to students, including Wells Fargo, Starbucks, Blackberry,
Uber, Kodak, and many more.
Instructor Support Materials

• Instructor Companion Website: Instructors can find course support materials, including
the Instructor’s Resource Manual, Test Bank files, PowerPoint® slides, and DVD guide.
• On the Job DVD: “On the Job” videos provide behind-the-scenes insights into manage-
ment concepts at work within actual small and large businesses. Corresponding support
material can be found in the DVD guide.
• Cengage Learning Testing, powered by Cognero® Instant Access: Cengage Learning
Testing powered by Cognero® is a flexible, online system that allows you to import,
edit, and manipulate content from the text’s test bank or elsewhere, including your own
favorite test questions; create multiple test versions in an instant; and deliver tests from
your LMS, your classroom, or wherever you want.

Preface xxi
Student Support Materials

• MindTap® Management for Griffin’s Management, Twelfth Edition, is the digital learn-
ing solution that helps instructors engage students and help them relate management
concepts to their lives. Through interactive assignments students connect management
concepts to real-world organizations and say how managers should perform in given sit-
uations. Finally, all activities are designed to teach students to problem-solve and think
like management leaders. Through these activities and real-time course analytics, and
an accessible reader, MindTap helps you turn cookie cutter into cutting edge, apathy
into engagement, and memorizers into higher-level thinkers.
Our adaptive learning solution provides customized questions, text, and video
resources based on student proficiency. Priced to please students and administrators,
this solution will help you develop the next generation of managers.
• The learning path is based on our Engage, Connect, Perform, and Lead model. Stu-
dents are drawn into the material with self-assessments. Quizzes and homework assign-
ments help students connect concepts with the real world, and higher-level homework
assignments ask students to analyze and manage complex situations.
• Self-assessments engage students by helping them make personal connections to the
content presented in the chapter.
• Reading quizzes assess students’ basic comprehension of the reading material to help
you gauge their level of engagement and understanding of the content.
• Homework assignments for each chapter are presented in our Aplia product. Question
sets challenge students to think critically and begin to think like managers.
• Concept videos present short enrichment clips of information on topics students typi-
cally struggle with.
• Video case activities engage students by presenting everyday businesses facing manage-
rial challenges, placing concepts in a real-world context and making for great points of
discussion.
• Experiential Exercises powered by YouSeeU include role play and group projects chal-
lenge students to work in teams in our one-of-a-kind collaborative environment to solve
real-world managerial problems, develop skills and begin to experience firsthand what
it’s like to work in management.
• Branching activities present challenging problems that cannot be solved with one spe-
cific correct answer. Students are presented with a series of decisions to be made based
upon information they are given about a company and are scored according to the qual-
ity of their decisions.
• Adaptive study centers are provided at the unit level and the exam level to help stu-
dents work toward mastery of course content. Material presented is customized to stu-
dents’ specific needs and serves up questions, feedback, remediation, and instructional
content according to how they progress.
• Writing Activities powered by Write Experience offers students the opportunity to
improve their writing and analytical skills without adding to your workload. Offered
through an exclusive agreement with Vantage Learning, creator of the software used
for GMAT essay grading, Write Experience evaluates students’ answers to a select set of
assignments for writing for voice, style, format, and originality.
I would also like to invite your feedback on this book. If you have any questions,
suggestions, or issues to discuss, please feel free to contact me. The most efficient way to
reach me is through e-mail at rgriffin@tamu.edu.
Ricky W. Griffin
ACKNOWLEDGMENTS
I am often asked by my colleagues why I write textbooks, and my answer is always, “Because
I enjoy it.” I’ve never enjoyed writing a book more than this one. For me, writing a textbook
is a challenging and stimulating activity that brings with it a variety of rewards. My greatest
reward continues to be the feedback I get from students and instructors about how much
they like this book.
I owe an enormous debt to many different people for helping me create Management.
My colleagues at Texas A&M University have helped create a wonderful academic climate.
The rich and varied culture at Texas A&M makes it a pleasure to go to the office every day.
The fine team of professionals at Cengage Learning has also been instrumental in the success
of this book. Erin Joyner, Jason Fremder, Scott Person, Carol Moore, Julia Chase, Brian Pierce,
Jennifer Ziegler, Rajachitra Suresh, Sarah Shainwald, and Dianne Garrity were instrumental
in the production of this edition. Julia Chase, in particular, played a major role in this edition.
Ron Librach also provided valuable assistance with his work on the cases and boxed features
in this edition. Many reviewers have played a critical role in the continuous evolution and
improvement of this project. They examined my work in detail and with a critical eye. I would
like to tip my hat to the following reviewers, whose imprint can be found throughout this text:
Pamela Acuff Allen Bluedorn

University of Nebraska–Omaha University of Missouri
Ramon J. Aldag Thomas M. Bock
University of Wisconsin The DeVry Institute of Technology
Dr. Raymond E. Alie Henry C. Bohleke
Western Michigan University Tarrant County College
Roanne Angiello Marv Borglett
Bergen Community College University of Maryland
William P. Anthony Gunther S. Boroschek
Florida State University University of Massachusetts–Boston Harbor
Campus
Jeanne Aurelio
Stonehill College Jennifer Bott Ball
State University
Jay B. Barney
Ohio State University John Brady
Indiana Tech
Richard Bartlett
Muskingum Area Paula Brown
Technical College Northern Illinois University
Michael Bento Dean Bruce
Owens Community College Northwest College
John D. Bigelow Gerald E. Calvasina
Boise State University University of North Carolina–Charlotte
Bruce Bloom Joseph Cantrell
DeVry University–Chicago DeAnza College
xxiii
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MUISTELMIA VUOSISADAN
VAIHTEESSA VUONNA 1901.
Kun on taaskin kuljettuna,

Vuosisata vierähtännä,
Jäänyt tuonne jälkipuoleen,
Niin mä aivon arvostella
Eli puoliskaan puhua
Vuosisadan vaihehia:
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Sata vuottakin sanovi,
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Viime vuosikymmenillä.
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(eBook PDF) Management 12th Edition

Contemporary Applied Perspectives 53 Managing Organization Culture 81

Building Effective Interpersonal Skills 58 Discussion Questions 93

Skill-Building Personal Assessment 59 Building Effective Time-Management Skills 93

Management at Work 61 Building Effective Communication Skills 94

CHAPTER 3: UNDERSTANDING CHAPTER 4: RESPONDING TO THE

MANAGEMENT IN ACTION: Putting MANAGEMENT IN ACTION: Management by

The Organization’s Environments 67 Individual Ethics in Organizations 103

How Government Influences Organizations 122 Competing in a Global Economy 159

BEYOND TRADITIONAL BUSINESS: Secret Unrelated Diversification 221

MANAGEMENT IN ACTION: Stay Hungry 204 Endnotes 240

The Nature of Strategic Management 206 CHAPTER 8: MANAGING DECISION

CHAPTER 9: MANAGING START-UPS PART FOUR The Organizing Process

Determining the Appropriate Span 319 Business-Level Strategy 349

Management at Work 332 Skill-Building Personal Assessment 361

MANAGEMENT IN ACTION: The First Axiom of CHAPTER 12: MANAGING

Changing Business Processes 378 Maintaining Human Resources 419

Organization Development 381 A WORLD OF DIFFERENCE: The Sin of Wages? 422

MANAGEMENT IN ACTION: Elementary,

Organizational Commitment and Engagement 448 The Two-Factor Theory 480

Types of Workplace Behavior 460 Using Reward Systems To Motivate

Skill-Building Personal Assessment 465 Summary of Learning Outcomes and

Endnotes 470 Building Effective Decision-Making Skills 504

CHAPTER 15: MANAGING EMPLOYEE Skill-Building Personal Assessment 505

The Nature of Leadership 514

Discussion Questions 538 Building Effective Technical Skills 573

Building Effective Conceptual Skills 540 Skill-Building Personal Assessment 574

Management at Work 574

Management At Work 542

CHAPTER 18: MANAGING WORK

Building Effective Communication Skills 605 Managing Control in Organizations 634

Building Effective Time-Management Purchasing Management 658

Building Effective Technical Skills 639 Managing Total Quality 659

Organizational Technologies 653 Endnotes 677

Implementing Operations Systems Through

Highlights and Improvements

Revisions in the Twelfth Edition

4. All of the chapter opening cases (“Management in Action”) are new.

Logical Chapter Organization

Features of the Book

A Pedagogical System That Works

Applications That Keep Students Engaged

A World of Difference (the role of diversity in organizations)

Tech Watch: (the role and impact of technology in business)

Leading the Way (the role and importance of leadership in business)

Doing Business on Plant Earth (sustainability)

Beyond Traditional Business (management in nonbusiness organizations)

Instructor Support Materials

Student Support Materials

Pamela Acuff Allen Bluedorn

Kun on taaskin kuljettuna,

Creating the works from print editions not protected by U.S.

START: FULL LICENSE

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CHAPTER 3: UNDERSTANDING CHAPTER 4: RESPONDING TO THE

The Nature of Strategic Management 206 CHAPTER 8: MANAGING DECISION

CHAPTER 9: MANAGING START-UPS PART FOUR The Organizing Process

MANAGEMENT IN ACTION: The First Axiom of CHAPTER 12: MANAGING

CHAPTER 18: MANAGING WORK