Management, 5th Canadian Edition

John Schermerhorn
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Management
Fifth Canadian Edition
Management
Fifth Canadian Edition

JOHN R. SCHERMERHORN, JR.

Ohio University

DANIEL G. B ACHRACH
University of Alabama

BARRY WRIGHT
Brock University
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B A RRY WRI GH T is an associate professor and former interim
dean at the Goodman School of Business at Brock University in
St. Catharines, Ontario, and is the former director of the Niag-
ara Community Observatory. Presently, Dr. Wright is seconded
to the role of CEO with the Niagara 2022 Canada Summer
Games, hosting over 5,000 athletes and coaches participating
in 18 different sports.
Dr. Wright has more than 30 years of experience in the
classroom. Prior to joining the faculty at Brock, he worked as
a professor at St. Francis Xavier University and taught at the
International Study Centre in Herstmonceux, United Kingdom,
and at Queen’s University in Kingston, Ontario. He has also
worked as an administrator with the city of Red Deer, Alberta.
During his career as an educator, Dr. Wright has received sev-
eral excellence in teaching awards at both the undergraduate
and graduate student levels.
At home in the classroom, Dr. Wright is also comfortable in
the boardroom. He has served on several boards of directors,
most recently as board chair of the Niagara Health System, and
has also provided a variety of training and research consulta-
tions to numerous Canadian private and public organizations.
These services have included the development and implemen-
tation of programs in leadership, teamwork, strategic planning,
diversity management, and managing organizational change.
Barry also provides one-on-one coaching sessions for senior
executives who have expressed a desire for outside counsel.
He received his MA (Sport Psychology) and Ph.D. (Manage-
ment) degrees from Queen’s University. His academic research
focuses on understanding and solving leadership challenges,
studying change and its influence on organizational members,
and creating effective work environments.
Barry enjoys being married and being a father, coaching
sports, a trip to the art gallery, travelling, and a good laugh.
D R . J O H N R. SC H E RME RH O RN , J R ., is the Charles G.
O’Bleness Professor of Management Emeritus in the College
of Business at Ohio University, where he teaches graduate
courses in management and organizational behaviour. Dr.
Schermerhorn earned a Ph.D. in organizational behaviour from
Northwestern University, an MBA (with distinction) in manage-
ment and international business from New York University, and
a BS in business administration from the State University of
New York at Buffalo. He previously taught at Tulane University,
the University of Vermont, and Southern Illinois University at
Carbondale, where he also served as head of the Department
of Management and associate dean of the College of Business
Administration.
International experience adds a unique global dimen-
sion to Dr. Schermerhorn’s teaching and writing. He holds an
About the Authors
honorary doctorate from the University of Pécs in Hungary. He
was a visiting professor of management at the Chinese Univer-
sity of Hong Kong, on-site coordinator of the Ohio University MBA
and Executive MBA programs in Malaysia, and Kohei Miura vis-
iting professor at Chubu University in Japan. He has served as
adjunct professor at the National University of Ireland at Galway
and advisor to the Lao-American College in Vientiane, Laos. He
currently teaches an MBA course at Università Politecnica Delle
Marche in Ancona, Italy, and Ph.D. seminars in the Knowledge
and Innovation Management doctoral program at Bangkok Uni-
versity, Thailand. At Ohio University he has twice been Director of
the Center for Southeast Asian Studies.
A member of the Academy of Management, Dr. Scher-
merhorn was chairperson of the Management Education and
Development Division. Management educators and students
alike know him as author of Exploring Management 4e (Wiley,
2014) and Management 12e (Wiley, 2013), and co-author of
Organizational Behavior 4e (Wiley, 2014). Dr. Schermerhorn has
also published numerous articles, including ones in the Acad-
emy of Management Journal, Academy of Management Review,
Academy of Management Executive, Organizational Dynamics,
Asia-Pacific Journal of Management, Journal of Management
Development, and Journal of Management Education.
Ohio University named Dr. Schermerhorn a University Profes-
sor, the university’s highest campus-wide honour for excellence in
undergraduate teaching. He is a popular guest speaker at colleges
and universities. He is available for student lectures and class-
room visits, as well as for faculty workshops on scholarly manu-
script development, textbook writing, high engagement teaching,
and instructional and curriculum innovations.
DR . DANIEL (DA N) G . BACHRAC H is the Robert C. and
Rosa P. Morrow Faculty Excellence Fellow and Professor of
Management in the Culverhouse College of Commerce and
Business Administration at the University of Alabama, where he
teaches graduate and undergraduate courses in management.
Dr. Bachrach earned a Ph.D. in organizational behaviour and
human resource management—with a minor emphasis in stra-
tegic management—from Indiana University’s Kelley School of
Business, an MS in industrial/organizational psychology from
the University of Wisconsin-Oshkosh, and a BA in psychology
from Bates College in Lewiston, Maine.
A member of the Academy of Management and the Society
for Industrial and Organizational Psychology, Dr. Bachrach serves
on the editorial boards of the Journal of Applied Psychology and
Organizational Behavior and Human Decision Processes. He is
co-editor of the Handbook of Behavioral Operations Management:
Social and Psychological Dynamics in Production and Service Set-
tings (Oxford University Press, 2014), co-author of Transformative
Selling: Becoming a Resource Manager and a Knowledge Broker
v
vi About the Authors
(Axcess Capon, 2014), and senior co-author of 10 Don’ts on Your
Digital Devices: The Non-Techie’s Survival Guide to Digital Security
and Privacy (Apress, 2014). Dr. Bachrach also has published exten-
sively in a number of academic journals, including Organization
Science, Journal of Applied Psychology, Strategic Management
Journal, Organizational Behavior and Human Decision Processes,
Personnel Psychology, Journal of Management, Leadership
Quarterly, Production and Operations Management, Journal of
­Operations Management, Journal of Supply Chain Management,
and Journal of Personal Selling and Sales Management.

As your career takes flight in today’s global workplace, it will
require careful personal aeronautical navigation. Sometimes
the air currents are gentle and it’s smooth flying. However,
sometimes there are large updrafts and downdrafts that pro-
duce course-plotting challenges that need to be managed.
No matter the conditions, a successful organization requires
skilled leaders at the point and confident team members who
know how to fly in formation.
With ever-changing technology and market conditions,
facing pandemics and societal problems, yet also always open
to innovation and opportunities, today’s organizations must be
nimble. It requires strategy, planning, teamwork, communica-
tion, and preparation to be able to change course quickly. It is
no longer an option to remain on the ground staring at the sky;
organizations know that taking a calculated yet safe flight path
is the route to success.
As you embark on your learning journey, this text will give
you a firm understanding of management theory and practices
that will prepare you to launch your career, no matter which
way the winds blow. Whether you want to become a captain
or a valued team member, Management 5e presents the tools
to succeed.
New to Management 5e
Management 5e has been revised and updated with a focus
on Canadian stories and timely real-world content, student
engagement through critical thinking about business and per-
sonal career issues, and instructor opportunities for enriched
classroom learning through activities and assignments.
Timely content—Every chapter has been updated. Exam-
ples of new and expanded coverage include: learning agility
(Chapter 1), moral muteness (Chapter 3), design thinking and
root cause analysis (Chapter 4), five Vs of big data ­management
(Chapter 7), strategic control (Chapter 9), latent organizations
(Chapter 11), nudge theory (Chapter 12), ­binational approaches
to HR practices (Chapter 13), character leadership and power
paradox (Chapter 14), willful blindness and progress princi-
ple (Chapter 15), six thinking hats (Chapter 17), and right-ear
advantage and sense-­making (Chapter 18).
Student engagement features—Student engagement is an
embedded theme in Management 5e. Look for these features
that bring life to disciplinary content: Analysis—Make Data Your
Friend, Choices—Think before You Act, Ethics—Know Right from
Wrong, Insight—Keep Learning about Yourself, and Wisdom—
Learn from Role Models. Each feature is designed and visually
presented to attract students’ attention and engage them in
reflection and critical thinking. These features are introduced
at the beginning of each chapter as part of What to Look for
Inside: Management Is Real.
Preface
Enriched classroom opportunities—The active and enriched
classroom is also an embedded theme in Management 5e.
Look for these opportunities that make it easy to bring text
content to life in discussions, activities, and individual and
team assignments: Evaluate Career Situations, Reflect on the
­Self-Assessment, Contribute to the Class Exercise, Manage a Crit-
ical Incident, Collaborate on the Team Activity, and Analyze the
Case Study. These enriched instructional components are intro-
duced at the very beginning of each chapter as part of What to
Look for Inside: Skills Make You Valuable.
Management 5e Philosophy
Today’s students are tomorrow’s leaders and managers. They
are our hope for the future during the social transformations
of a global pandemic, #me-too and Black Lives Matter move-
ments, indigenous reconciliation, labour force migration, and
concerns for the planet, all impacting and influencing work
environments. New values and management approaches are
appearing; organizations are changing forms and practices;
jobs are being redefined and relocated; the impact of the
information age is a major force in our lives; and the battles
between globalization and protectionism are presenting major
organizational and economic challenges.
Management 5e is designed to help students discover
their true potential and accept personal responsibility
for developing their career skills.
Management 5e and its rich selection of timely examples
and thought-provoking features for analysis and reflection is
designed for this new world of work. It is crafted to help stu-
dents understand that management is real and is an everyday
part of their lives. By engaging with Management 5e, students
explore the essentials of management while also discovering
their true potential for developing useful career skills. The con-
tent, pedagogy, and features of this edition have been carefully
blended to support management educators who want their
students to:
• understand and apply the principles of management,
• gain confidence in critical thinking,
• identify timely social and organizational issues,
• embrace lifelong learning for career success,
• become attractive internship and job candidates, and
• grow in career readiness.
vii
viii Preface
Management 5e Pedagogy
The pedagogical foundations of Management 5e are based on
four constructive balances that are essential to higher educa-
tion for business and management.
• The balance of research insights with formative education.
As educators we must be willing to make choices when bring-
ing the theories and concepts of our discipline to the atten-
tion of the introductory student. We cannot do everything in
one course. The goal should be to make good content choices
that set the best possible foundations for lifelong learning.
Our goal as educators should be to make good
content and pedagogical choices that set the best
possible foundations for lifelong learning.
• The balance of management theory with management
practice. As educators we must understand the compel-
ling needs of students to learn and appreciate the applica-
tions of the material they are reading and thinking about.
We must continually bring to their attention interesting
and relevant examples.
• The balance of present understandings with future pos-
sibilities. As educators we must continually search for the
directions in which the real world of management is heading.
We must select and present materials that can both point
students in the right directions and help them develop the
confidence and self-respect needed to pursue their goals.
• The balance of what “can” be done with what is, purely
and simply, the “right” thing to do. As educators we are
role models; we set an example for our students. We must
be willing to take stands on issues relating to managerial
ethics and social responsibility. We must be careful not to
let the concept of “contingency” betray the need for posi-
tive action and accountability in managerial practice.
We are role models . . . we must be willing to take
stands on issues such as managerial ethics and
social responsibility.
Our students have pressing needs for direction as well as sug-
gestion. They need application as well as information. They have
needs for integration as well as presentation. And they have the
need for confidence that comes from solid understanding. Our
goal is to put into your hands and into those of your students a
learning resource that can help meet these needs.
Management 5e Highlights
Management 5e introduces the essentials of management as
they apply to organizations and careers in a complex global
society. The subject matter is carefully chosen to meet the
accreditation guidelines of the Association to Advance Colle-
giate Schools of Business (AACSB), while still allowing exten-
sive flexibility to fit various course designs, class sizes, and
delivery formats.
The timely content offers flexibility in meeting a wide vari-
ety of course objectives and instructor preferences. The material
is organized into five logical parts—Management, Environment,
Planning and Controlling, Organizing, and Leading. These parts
and the accompanying material can be used in any order and
combination. All content has been updated and enriched with
new features and examples from the latest current events.
Learning Model
The Management 5e learning model makes it easy for students
to read, study, reflect, and use critical thinking. Their attention is
focused on building management skills and competencies through
active learning and on discovering that management issues and
themes permeate current events that effect everyday living.
The Management 5e learning model makes it easy for
students to study, reflect, and use critical thinking as
they read.
Each chapter opens with a compelling photo and quote,
followed by a learning dashboard that provides a Chapter
Quick Start overview, list of Learning Objectives, and a What
to Look for Inside directory in two parts: Management Is
Real—with features on Choices, Insight, Analysis, Ethics, and
Wisdom; and Skills Make You Valuable—with features to Eval-
uate, Reflect, Contribute, Manage, Collaborate, and Analyze.
­Figures provide visual support for student comprehension as
concepts, theories, and terms are introduced. Selected figures
also appear as interactives in the course. The Management
­Learning Review section at the end of each chapter helps stu-
dents prepare for quizzes and exams by ­completing a Learning
Objective Summary and Self-Test. Interactive self-­assessments
give students a chance to engage with some of the end-
of-chapter questions in an online environment.
Self-Reflection, Active Learning, and
Critical Thinking
The What to Look for Inside guide in the learning dashboard
points out the many features in Management 5e that provide
students with important opportunities for self-reflection, active
learning, and critical thinking. Management Is Real features
current events, timely issues, and real people and situations to
build awareness and stimulate personal reflection.
At the end of each chapter, Skills Make You Valuable fea-
tures provide a variety of opportunities to build management
skills through individual and team learning activities.
A sampling of the Management Is Real and Skills Make You
Valuable features follows:

What to Look for Inside
Management Is Real
4.1 Analysis Make Data Your Friend
Social Attitudes Shift on Women at Work, but Concerns for
Equality Persist
4.2 Ethics Know Right from Wrong
Offshore E-Waste Graveyards Bury a Problem
4.3 Insight Keep Learning about Yourself
Risk Taking Has Its Ups and Downs
4.4 Wisdom Learn from Role Models
The Westons Take the Cake
4.5 Choices Think before You Act
Sustainability Ranks Low among Global Executive Challenges
Management 5e Exceptional
Content in Any Media
Wiley online courseware is a teaching and learning platform
that integrates text with interactive and multimedia content,
online tools, and resources to provide a contemporary and
appealing learning experience. Offering Wiley online course-
ware along with a stand-alone eText and practical printed text
options allows the flexibility to suit any course format, whether
it be face-to-face, a hybrid/blended learning environment, or
an online class. Features include:
• a complete version of the eText
• Author videos: These videos summarize key points and
provide examples and illustrations to enhance student
engagement and understanding.
Acknowledgements
Writing is always a big task and there are many people who have
contributed greatly to this project. Special thanks go to Courtney
Jordan, Acquisitions Editor, for her support and vision for the proj-
ect. I would also like to acknowledge Erica Appel, Elena Saccaro,
and Meaghan MacDonald of John Wiley & Sons Canada, Ltd. for
their vision and encouragement. The support each has provided
to me is truly above and beyond—a heartfelt thank you to each. I
would also like to thank Jenny Geiler, Marketing Manager, for her
very helpful counsel on making the content faculty-focused and
student-friendly. I would also like to extend my gratitude to Neha
Bhargava, Patrick Cash-Peterson, Imogen Brian, Emma Cole, and
Sukhwinder Singh for their excellent editorial contributions (and I
truly mean excellent).
Preface ix
Skills Make You Valuable
• Evaluate Career Situations:
What Would You Do?
• Reflect on the Self-Assessment:
Tolerance for Ambiguity
• Contribute to the Class Exercise:
The Future Workplace
• Manage a Critical Incident:
It’s Also about Respect
• Collaborate on the Team Activity:
Organizational Commitment to Sustainability Scorecard
• Analyze the Case Study:
Patagonia: Leading a Green Revolution
• Video cases: Video cases accompanying each chap-
ter help to illustrate and expand on relevant topics and
allow for further analysis and critical thinking.
The videos are accompanied by teaching notes that
provide starting points for lectures or for general class
discussion.
• Management Weekly Updates: These timely updates keep
you and your students updated and informed on the very
latest in business news stories. Each week you will find
links to five new articles, video clips, business news sto-
ries, and so much more with discussion questions to elab-
orate on the stories in the classroom.
I would like to offer my particular thanks to Dr. Linda Bramble, who was
both innovative and instrumental in completing this edition. She is a
talented writer and scholar and I am blessed to have had her partner
with me on this project.
I am also thankful for the expert sales team that Wiley Canada has in
place. Each and every one of them is a true delight to work with. I enjoy
your visits, insights, and abilities to meet professors’ needs. To all, my
heartfelt thanks.
I am grateful to the following colleagues who offered their perceptive
and very useful feedback during development and contributed to the
related supplements.
x Preface

Ann Conquergood, Athabasca University In closing, I would especially like to thank my family—my lovely wife
David Delcord, University of Ottawa Mary, darling daughters Monica and Kit, happy son John Emmett,
Burchell Hanson, Humber College father Herb, and in-laws Mona and Bob—who all offered hugs and help
Judy Kovacs, Northern Alberta Institute of Technology along the way. To all who are striving to make the world a better place,
Richard Michalski, McMaster University I dedicate this book.
Horatio Morgan, Ryerson University
Gabriela H. Schneider, Northern Alberta Institute of Technology (retired)
BARRY WRIGHT
Sui Sui, Ryerson University
St. Catharines, Ontario
Wendy Tarrel, Nova Scotia Community College
August 2020
Gerhard Trippen, University of Toronto
 Brief Contents

Part One Management 12 Organization Culture and Change 220

1 Management Today 1 13 Strategic Human Resource
2 Management Learning Past to Present 23 Management 240

3 Ethics and Social Responsibility 40 Part Five Leading

14 Leading and Leadership Development 262
Part Two Environment
15 Individual Behaviour 282
4 Environment, Innovation, and
Sustainability 62 16 Motivation Theory and Practice 302

5 Global Management and Cultural 17 Teams and Teamwork 322

Diversity 79
18 Communication and Collaboration 344
6 Entrepreneurship and New Ventures 101
A P P E NDIX Operations and Services
Management 366
Part Three Planning and Controlling
CA S E ST U DIE S Management Cases for Critical
7 Data and Decision-Making 120
Thinking 379
8 Planning Processes and Techniques 143
SELF-TEST ANSWERS 403
9 Control Processes and Systems 161
E NDNOT E S 411
10 Strategy and Strategic Management 178
O RGA NIZAT IO N INDE X 443

NA M E INDE X 447
Part Four Organizing
11 Organization Structures 200 S U BJE CT INDE X 450

xi
Contents
Part One Management
1 Management Today 1
1.1 Working Today 2
1.2 Organizations 7
1.3 Managers 9
1.4 The Management Process 12
1.5 Learning How to Manage 14
Management Learning Review:
Get Prepared for Quizzes and Exams 17
Summary 17
Chapter Glossary 18
Self-Test 1 19
Management Skills & Competencies:
Make Yourself Valuable! 20
Evaluate Career Situations 20
Reflect on the Self-Assessment 20
Contribute to the Class Exercise 21
Manage a Critical Incident 21
Collaborate on the Team Activity 21
Analyze the Case Study 22
2 Management Learning
Past to Present 23
2.1 Classical Management Approaches 24
2.2 Behavioural Management Approaches 26
2.3 Modern Management Foundations 31
Management Learning Review:
Get Prepared for Quizzes and Exams 35
Summary 35
Chapter Glossary 36
Self-Test 2 36
Management Skills & Competencies:
Make Yourself Valuable! 37
Evaluate Career Situations 37
Reflect on the Self-Assessment 38
Contribute to the Class Exercise 38
Manage a Critical Incident 39
Collaborate on the Team Activity 39
Analyze the Case Study 39
xii
3 Ethics and Social
Responsibility 40
3.1 Ethics 41
3.2 Ethics in the Workplace 44
3.3 Maintaining High Ethical Standards 49
3.4 Social Responsibility 50
Management Learning Review:
Get Prepared for Quizzes and Exams 56
Summary 56
Chapter Glossary 57
Self-Test 3 58
Management Skills & Competencies:
Make Yourself Valuable! 59
Evaluate Career Situations 59
Reflect on the Self-Assessment 59
Contribute to the Class Exercise 60
Manage a Critical Incident 60
Collaborate on the Team Activity 61
Analyze the Case Study 61
Part Two Environment
4 Environment, Innovation,
and Sustainability 62
4.1 The External Environment 63
4.2 Environment and Value Creation 67
4.3 Environment and Innovation 69
4.4 Environment and Sustainability 72
Management Learning Review:
Get Prepared for Quizzes and Exams 74
Summary 74
Chapter Glossary 75
Self-Test 4 76
Management Skills & Competencies:
Make Yourself Valuable! 77
Evaluate Career Situations 77
Reflect on the Self-Assessment 77
Contribute to the Class Exercise 78
Manage a Critical Incident 78
Collaborate on the Team Activity 78
Analyze the Case Study 78

5 Global Management and Cultural
Diversity 79
5.1 Management and Globalization 81
5.2 Global Businesses 87
5.3 Cultures and Global Diversity 90
5.4 Global Management Learning 94
Management Learning Review:
Get Prepared for Quizzes and Exams 95
Summary 95
Chapter Glossary 96
Self-Test 5 97
Management Skills & Competencies:
Make Yourself Valuable! 98
Evaluate Career Situations 98
Reflect on the Self-Assessment 98
Contribute to the Class Exercise 99
Manage a Critical Incident 99
Collaborate on the Team Activity 100
Analyze the Case Study 100
6 Entrepreneurship and
New Ventures 101
6.1 The Nature of Entrepreneurship 103
6.2 Entrepreneurship and Small Business 108
6.3 New Venture Creation 110
Management Learning Review:
Get Prepared for Quizzes and Exams 114
Summary 114
Chapter Glossary 115
Self-Test 6 116
Management Skills & Competencies:
Make Yourself Valuable! 117
Evaluate Career Situations 117
Reflect on the Self-Assessment 117
Contribute to the Class Exercise 118
Manage a Critical Incident 118
Collaborate on the Team Activity 119
Analyze the Case Study 119
Part Three Planning and
Controlling
7 Data and Decision-Making 120
7.1 Information, Technology, and
Management 121
7.2 Problem Solving and Managerial Decisions
7.3 The Decision-Making Process 128
Contents xiii
7.4 Decision-Making Pitfalls, Creativity,
and Integrative Thinking 132
Management Learning Review:
Get Prepared for Quizzes and Exams 137
Summary 137
Chapter Glossary 138
Self-Test 7 139
Management Skills & Competencies:
Make Yourself Valuable! 140
Evaluate Career Situations 140
Reflect on the Self-Assessment 140
Contribute to the Class Exercise 141
Manage a Critical Incident 141
Collaborate on the Team Activity 142
Analyze the Case Study 142
8 Planning Processes and
Techniques 143
8.1 Why and How Managers Plan 145
8.2 Types of Plans Used by Managers 147
8.3 Planning Tools and Techniques 150
8.4 Implementing Plans to Achieve Results 153
Management Learning Review:
Get Prepared for Quizzes and Exams 156
Summary 156
Chapter Glossary 157
Self-Test 8 157
Management Skills & Competencies:
Make Yourself Valuable! 158
Evaluate Career Situations 158
Reflect on the Self-Assessment 159
Contribute to the Class Exercise 159
Manage a Critical Incident 159
Collaborate on the Team Activity 160
Analyze the Case Study 160
9 Control Processes and
Systems 161
9.1 Why and How Managers Control 162
9.2 The Control Process 167
9.3 Control Tools and Techniques 169
Management Learning Review:
Get Prepared for Quizzes and Exams 173
Summary 173
Chapter Glossary 173
Self-Test 9 174
Management Skills & Competencies:
Make Yourself Valuable! 175
Evaluate Career Situations 175
124 Reflect on the Self-Assessment 175
Contribute to the Class Exercise 176
xiv Contents
Manage a Critical Incident 176
Collaborate on the Team Activity 177
Analyze the Case Study 177
10 Strategy and Strategic
Management 178
10.1 Strategic Management 180
10.2 Essentials of Strategic Analysis 182
10.3 Corporate-Level Strategy Formulation 186
10.4 Business-Level Strategy Formulation 190
10.5 Strategy Implementation 192
Management Learning Review:
Get Prepared for Quizzes and Exams 194
Summary 194
Chapter Glossary 195
Self-Test 10 196
Management Skills & Competencies:
Make Yourself Valuable! 197
Evaluate Career Situations 197
Reflect on the Self-Assessment 197
Contribute to the Class Exercise 198
Manage a Critical Incident 199
Collaborate on the Team Activity 199
Analyze the Case Study 199
Part Four Organizing
11 Organization Structures
11.1 Organizing as a Management Function 201
11.2 Traditional Organization Structures 203
11.3 Team and Network Organization
Structures 208
11.4 Organizational Designs 211
Management Learning Review:
Get Prepared for Quizzes and Exams 215
Summary 215
Chapter Glossary 216
Self-Test 11 216
Management Skills & Competencies:
Make Yourself Valuable! 217
Evaluate Career Situations 217
Reflect on the Self-Assessment 218
Contribute to the Class Exercise 218
Manage a Critical Incident 218
Collaborate on the Team Activity 219
Analyze the Case Study 219
12 Organization Culture
and Change 220
12.1 Organizational Cultures 221
12.2 Multicultural Organizations and Diversity 225
12.3 Organizational Change 229
Management Learning Review:
Get Prepared for Quizzes and Exams 235
Summary 235
Chapter Glossary 236
Self-Test 12 237
Management Skills & Competencies:
Make Yourself Valuable! 238
Evaluate Career Situations 238
Reflect on the Self-Assessment 238
Contribute to the Class Exercise 238
Manage a Critical Incident 239
Collaborate on the Team Activity 239
Analyze the Case Study 239
13 Strategic Human Resource
Management 240
13.1 Human Resource Management 242
13.2 Attracting a Quality Workforce 246
13.3 Developing a Quality Workforce 250
13.4 Maintaining a Quality Workforce 253
Management Learning Review:
200 Get Prepared for Quizzes and Exams 256
Summary 256
Chapter Glossary 257
Self-Test 13 258
Management Skills & Competencies:
Make Yourself Valuable! 259
Evaluate Career Situations 259
Reflect on the Self-Assessment 260
Contribute to the Class Exercise 260
Manage a Critical Incident 261
Collaborate on the Team Activity 261
Analyze the Case Study 261
Part Five Leading
14 Leading and Leadership
Development 262
14.1 The Nature of Leadership 264
14.2 Leadership Traits and Behaviours 267
14.3 Contingency Approaches to Leadership 269

14.4 Personal Leadership Development 273
Management Learning Review:
Get Prepared for Quizzes and Exams 277
Summary 277
Chapter Glossary 277
Self-Test 14 278
Management Skills & Competencies:
Make Yourself Valuable! 279
Evaluate Career Situations 279
Reflect on the Self-Assessment 279
Contribute to the Class Exercise 280
Manage a Critical Incident 280
Collaborate on the Team Activity 281
Analyze the Case Study 281
15 Individual Behaviour 282
15.1 Perception 284
15.2 Personality 287
15.3 Attitudes 290
15.4 Emotions, Moods, and Stress 294
Management Learning Review:
Get Prepared for Quizzes and Exams 297
Summary 297
Chapter Glossary 297
Self-Test 15 298
Management Skills & Competencies:
Make Yourself Valuable! 299
Evaluate Career Situations 299
Reflect on the Self-Assessment 300
Contribute to the Class Exercise 300
Manage a Critical Incident 301
Collaborate on the Team Activity 301
Analyze the Case Study 301
16 Motivation Theory and Practice
16.1 Individual Needs and Motivation 304
16.2 Process Theories of Motivation 307
16.3 Reinforcement Theory 312
16.4 Motivation and Job Design 314
Management Learning Review:
Get Prepared for Quizzes and Exams 317
Summary 317
Chapter Glossary 318
Self-Test 16 319
Management Skills & Competencies:
Make Yourself Valuable! 320
Evaluate Career Situations 320
Reflect on the Self-Assessment 320
Contribute to the Class Exercise 320
Manage a Critical Incident 321
Collaborate on the Team Activity 321
Analyze the Case Study 321
Contents xv
17 Teams and Teamwork 322
17.1 Teams in Organizations 324
17.2 Trends in the Use of Teams 327
17.3 How Teams Work 329
17.4 Decision-Making in Teams 336
Management Learning Review:
Get Prepared for Quizzes and Exams 338
Summary 338
Chapter Glossary 339
Self-Test 17 340
Management Skills & Competencies:
Make Yourself Valuable! 341
Evaluate Career Situations 341
Reflect on the Self-Assessment 341
Contribute to the Class Exercise 342
Manage a Critical Incident 342
Collaborate on the Team Activity 343
Analyze the Case Study 343
18 Communication and
Collaboration 344
18.1 The Communication Process 346
18.2 Improving Collaboration through
Communication 350
18.3 Managing Conflict 353
18.4 Managing Negotiation 357
Management Learning Review:
Get Prepared for Quizzes and Exams 360
Summary 360
Chapter Glossary 361
Self-Test 18 361
Management Skills & Competencies:
302 Make Yourself Valuable! 363
Evaluate Career Situations 363
Reflect on the Self-Assessment 363
Contribute to the Class Exercise 364
Manage a Critical Incident 364
Collaborate on the Team Activity 365
Analyze the Case Study 365
A P P E NDIX OPERATIONS AND SERVICES
MANAGEMENT 366
CA S E ST U DIE S MANAGEMENT CASES FOR CRITICAL
THINKING 379
S E L F -T E ST A NS W E RS 403
E NDNOT E S 411
O RGA NIZAT IO N INDE X 443
NA M E INDE X 447
S U BJE CT INDE X 450
 CHAPTER 1

Sharply_done/Getty
Sharply_done/Getty Images Imag

Management Today
Canada geese fly in formation to conserve energy and to
improve communication on their long journeys. Likewise,
good managers can help organizations reach their goals
through coordination, communication, and leadership.
We live and work in a very complex world. Unemployment
and job scarcity, ethical missteps by business and govern-
ment leaders, financial turmoil and uncertainty, environmen-
tal challenges, and complex global health, economic and
political issues are regularly in the news. Today’s organizations
are rapidly changing, as is the nature of work itself. Talent and
technology reign supreme in the most desired jobs. Learning,
performance, and flexibility are essential individual attributes;
employers expect the best from us, and the best employers
provide us with inspiring leadership and supportive work envi-
ronments that provide respect, involvement, teamwork, and
rewards.1

Chapter Quick Start

Management is part of our everyday lives. We manage ourselves, we manage relationships,
we manage families, and we manage teams and co-workers. Now is a good time to study the
fundamentals of management, learn more about your capabilities, and start building skills for
career and life success.

1
2 C HA PTER 1 Management Today

CHAPTER OUTLINE LEARNING OBJECTIVES

1.1 Working Today 1.1 Summarize the challenges of developing and

maintaining career readiness in the new economy.

1.2 Organizations 1.2 Describe what organizations are like as work settings.

1.3 Managers 1.3 Discuss what it means to be a manager.

1.4 The Management Process 1.4 Explain the functions, roles, and activities of managers.

1.5 Learning How to Manage 1.5 Summarize how we learn and use essential skills for
career success.

What to Look for Inside

Management Is Real Skills That Make You Valuable

1.1 Analysis Make Data Your Friend • Evaluate Career Situations:
Multiple Generations Meet and Greet in the New World of What Would You Do?
Work • Reflect on the Self-Assessment:
1.2 Ethics Know Right from Wrong Career Readiness “Big 20”

Social Media Searches Linked with Discrimination in Hiring • Contribute to the Class Exercise:
My Best Manager
1.3 Wisdom Learn from Role Models
Tonia Jahshan Turned Over a New Leaf • Manage a Critical Incident:
Team Leader Faces Test
1.4 Choices Think before You Act
• Collaborate on the Team Activity:
Want Vacation? Take as Much as You Want
The Amazing Great Job Race
1.5 Insight Keep Learning about Yourself
• Analyze the Case Study:
Self-Awareness and the Johari Window Vancity | Keeping Employees Happy and Healthy

1.1 Working Today of our time,” Gratton says. “Globalization means we can work any-
where, but must compete with people from everywhere.”2 What
does the changing nature of work mean as you plan for career
LEARNING OBJECTIVE 1.1 entry and advancement? You can’t expect a guarantee of long-
term employment in today’s workplace. More and more jobs have
Summarize the challenges of developing and maintaining to be continually earned and re-earned through everyday perfor-
career readiness in the new economy. mance and accomplishments. And in times of continuous change,
you have to accept that your career will be defined by “flexibility,”
“free agency,” “skill portfolios,” and “entrepreneurship.”
There is also no escaping the fact that your career success
Learn More About will require a lot of initiative, self-awareness, and continuous
learning. The question is: Are you ready? Whether your answer
Talent • Technology • Globalization • Ethics
is “Yes” or a tentative “Maybe,” this book and management
• Diversity • Careers and connections
course can help strengthen your career readiness.

In her book The Shift: The Future of Work Is Already Here, scholar Talent
Lynda Gratton describes why things are changing so quickly
today and how young people can navigate their careers through A study by management scholars Charles O’Reilly and Jeffrey
these changes. “Technology shrinks the world but consumes all Pfeffer found that high-performing companies are better than

their competitors at getting extraordinary results from employ-
ees. “These companies have won the war for talent,” they
argue, “not just by being great places to work—although they
are that—but by figuring out how to get the best out of all of
their people, every day.”3
People and their talents—what they know, what they
learn, and what they achieve—are the crucial foundations for
organizational performance. They represent what managers
call intellectual capital, which is the combined brainpower
and shared knowledge of an organization’s employees.4 Intel-
lectual capital is a strategic asset that organizations can use
to transform human creativity, insight, and decision-making
into performance. Intellectual capital is also a personal asset,
one to be nurtured and continually updated. It is the package
of intellect, skills, and capabilities that sets us apart, and that
makes us valuable to potential employers.
Think about the personal implications of this intellectual
capital equation: Intellectual Capital = Competency × Commit-
ment.5 What does it suggest in terms of developing your talents
for career success? Competency represents your personal tal-
ents or job-related capabilities. Although extremely important,
competency by itself won’t guarantee success. You have to be
committed. Commitment represents how hard you work to
apply your talents and capabilities to important tasks. Both
are essential. Having one without the other won’t allow you to
Management Is Real 1.1: Analysis Make Data Your Friend
72 percent of college students want “a job where I can
make an impact.”
Multiple Generations Meet and Greet in the New
World of Work
Is the notion of a “9 to 5” job about to become a relic? What hap-
pens as younger workers advance into management? How can
baby boomers and millennials work well with each other? The
changing mix of ages and attitudes in the workplace is putting the
pressure on traditional employment practices. Here are some sur-
vey data to consider.
• 60 percent of millennials change their first jobs after three
years and employers spend $15,000 to $25,000 recruiting
replacements.
• The best predictor of job loyalty for millennials is “a good cul- Hero Images/Adobe Stock Photos
ture fit.”
• 45 percent of millennials rate workplace flexibility higher than
pay and 71 percent hope co-workers will become a “second
family.”
• 68 percent of millennials get high scores for being enthusiastic
about work, 45 percent for being team players, and 39 percent
for being hard-working.
• 73 percent of boomer managers get high scores for being
hard-working, 55 percent for being team players, 21 percent
for flexibility, and 16 percent for inclusive leadership.
• 72 percent of college students say they want “a job where I can
make an impact.”
Working Today 3
achieve important career goals or to meet even basic perfor-
mance requirements. It takes both competency and commit-
ment to generate intellectual capital. Generational differences
in views of work elements such as competency and commit-
ment are discussed in Management Is Real 1.1.
Workplaces in today’s age of information, technology,
and change are dominated by knowledge workers whose
minds—their creativity and insight—are critical assets.6 Futur-
ist Daniel Pink says we will soon enter a conceptual age where a
premium will be placed on “whole mind” competencies. Those
who have them are both “high concept”—creative and good
with ideas—and “high touch”—cheerful and good with rela-
tionships.7 Management scholar and consultant Gary Hamel
talks about a creative economy, “where even knowledge itself
is becoming a commodity” and “the most important differenti-
ator will be how fast you can create something new.”8 Mastering
these intellectual challenges requires ongoing development of
multiple skill sets in order to keep your personal competencies
aligned with—and at the forefront of—emerging job trends.
Technology
Technology continuously tests our talents and intrudes into
every aspect of our lives. Think about how much time you
Hero Images/Getty Images
• 60 percent of Generation-Zers want multiple check-ins from
their managers weekly, if not daily.
What are the Implications?
How do these findings compare with your own career prefer-
ences or what you hear from people you know? How might this
evidence influence your approach to seeking a job? What char-
acteristics and practices define your ideal employer? What can
employers do to attract and retain talented millennials while
keeping older generations happy? Is what’s good for millennials
necessarily good for everyone? How can managers effectively
integrate people with varying needs and interests so employees
from different generations work together with respect and pride?
4 C HA PTER 1 Management Today
spend on Zoom, Hangouts, Twitter, Snapchat, WeChat, Face-
book, and more. We are continuously bombarded with adver-
tisements for the latest developments—smart phones, smart
apparel, smart cars, smart homes. We struggle to keep up with
our social media involvements, stay connected with messag-
ing, and deal with full email and voice mail inboxes. It is likely
that, right now, you are reading this “book” on your favourite
tablet or smart phone rather than in its traditional form. Given
what has already happened with how we use technology, what
will things look like tomorrow?
We are currently in the fourth industrial age, one where
the cloud, mobile Internet, automation, robotics, and artificial
intelligence are driving the forces of change. To succeed, it is
critical to build and to maintain a high Tech IQ—the ability
to use current technologies at work and in your personal life,
combined with the commitment to keep yourself updated as
technology continues to evolve. Whether you’re checking inven-
tory, making a sale, ordering supplies, sourcing customers,
prioritizing accounts, handling payrolls, recruiting new hires,
or analyzing customer preferences, Tech IQ is indispensable.
More and more people spend at least part of their workday
telecommuting or working from home or in mobile offices.
Workplaces are full of “virtual teams” with members who meet,
access common databases, share information and files, make
plans and decisions, solve problems together, and complete
tasks without ever meeting face to face. Tech IQ is an essential
foundation for succeeding in this fast-changing world of tech-
nological innovation.
Even finding work and succeeding in the job selection pro-
cess today involves skilled use of technology. Poor communi-
cation, careless applications, and under-researched attempts
do not work in the world of the electronic job search. Filling in
your online profile with the right keywords does work. Many
employers use sophisticated software to scan online profiles
for indicators of real job skills and experiences that fit their
needs. Most recruiters today also check social media for nega-
tive indicators about applicants.
Globalization
National boundaries hardly count anymore in the world of
business.9 Over 1.9 million people in Canada work for foreign
employers.10 We buy Japanese cars like Toyota and Honda that
are assembled in Canada. We buy appliances from the Chinese
firm Haier and Tetley Tea from India’s Tata Group. Top manag-
ers at Starbucks, IBM, Sony, Ford, and other global companies
have little need for the words “overseas” or “international” in
their vocabulary. They operate as global businesses serving
customers around the world. They source materials and talent
wherever in the world it can be found at the lowest cost.
These are among the many consequences of globaliza-
tion, which is the worldwide interdependence of resource
flows, product markets, and business competition.11 Under its
influence, government leaders worry about the competitive-
ness of nations, just as corporate leaders worry about business
competitiveness.12 Countries and people are interconnected
through labour markets, employment patterns, and financial
systems. We are no longer surprised to find that our customer
service call is answered in Ghana, CT scans are read by a radiol-
ogist in India, and business records are maintained by accoun-
tants in the Philippines.
One controversial consequence of globalization is job
migration, which is the shifting of jobs from one country to
another. While Canada has been a net loser to job migration,
countries like China, India, and the Philippines have been net
gainers. Politicians and policy-makers regularly debate the
costs of job migration as local jobs are lost and communities
lose economic vitality. One side looks for new government poli-
cies to stop job migration and protect Canadian jobs. The other
side calls for patience, arguing that the national economy will
grow jobs in the long run as the global economy readjusts.
The flip side of job migration is reshoring, which is the
shift of manufacturing and jobs back home from overseas.
Rising global manufacturing and transportation costs, increas-
ing labour costs in China and other manufacturing countries,
growing worries about intellectual property protection in coun-
tries like China, and shortened supply chain lead times have
led manufacturing firms such as Caterpillar, Ford, and General
Electric to do more reshoring.13 A recent report by BDO Canada,
an accounting firm that provides business advisory services,
comments on the growing tendency toward reshoring: “A firm’s
proximity to its customers is once again becoming a strategic
asset and competitive advantage.”14
Ethics
It’s old news now that Bernie Madoff was sentenced to 150
years in jail for a Ponzi scheme costing investors billions of dol-
lars. But the message is still timely and crystal clear: Commit
white-collar crime and you will be punished.15 Madoff’s crime
did terrible harm to numerous individuals who lost their life
savings, charitable foundations that lost millions in charita-
ble gifts, and employees who lost their jobs. Our society also
paid a large price as investors’ faith in the business system was
damaged by the scandal. Although very high profile, the Madoff
scandal was by no means a unique or isolated case of criminal
behaviour by a lone executive. Fresh scandals involving compa-
nies like SNC Lavalin regularly make the news.
The issues we explore here deal with the broader notion of
ethics—a code of moral principles that sets standards for con-
duct that is “good” and “right,” as well as “bad” and “wrong.”16
At the end of the day we depend on individuals, working at all
organizational levels, to conduct themselves in ethical ways.
We also expect employers to act ethically (see Management Is
Real 1.2). And even though ethics failures get most of the pub-
licity, you’ll find many examples of managers who demonstrate
moral leadership and integrity. Believing that most CEOs are
overpaid, the former CEO of Dial Corporation, Herb Baum, once
gave his annual bonus to the firm’s lowest-paid workers.17 In
his book The Transparent Leader, he argues that integrity is key
to leadership success and that the responsibility for setting an
organization’s ethical tone begins at the top. Shareholders in
several companies in Canada are getting more aggressive when
it comes to voting against excessive executive compensation.18

Management Is Real 1.2: Ethics Know Right from Wrong
Subtleties in social media postings can contribute to
­discrimination in the recruitment process.
Social Media Searches Linked with
Discrimination in Hiring
It’s no secret that a growing number of employers (more than a
third) browse the web and follow social media to gather informa-
tion and impressions about job candidates. It is also well known
that inappropriate postings can hurt you, so much so that people
are increasingly editing controversial things they’ve done out of
their public profiles.
New research reported from Carnegie Mellon University also
suggests that subtle cues in social media postings can contribute to
discrimination in the recruitment process. One of the researchers,
Professor Alessandro Acquisti, says, “There is so much information
we reveal about ourselves online, sometimes in ways we do not
even realize.”
Researchers distributed 4,000 resumés to job posting sites
and associated the resumés with Facebook profiles offering hints—
background photos and quotes, for example—about the candi-
dates’ religion (Muslim or Christian) and sexuality (gay or straight).
Results showed that 17% of Christians received a call back while
only 2% of Muslims did. Sexuality cues made no significant differ-
ence in call-back rates. It’s against Canadian law to discriminate
in hiring on the basis of religion or sexuality, but the researchers
point out that discrimination based on what is discovered in social
media investigations can be unconscious rather than intentional.
Professor Acquisti says, “By and large, employers avoid asking
questions about these traits in interviews. But now technology
makes it easier to find that information.” Other social media cues
One indicator of ethics in organizations is the emphasis
given to social responsibility and sustainability practices. Pres-
ident and CEO Rob Wesseling of the Guelph-based company
The Co-operators states, “We exist to provide financial secu-
rity for Canadians and Canadian communities. And, we take
a holistic view. It’s not just financial security in terms of eco-
nomics, but also social and environmental security which are
critical to overall wellness.” It is this strategy and focus that
earned The Co-operators the top spot on the 2019 Corporate
Knights Best 50 Corporate Citizens list in Canada.19
Another ethics indicator is the strength of corporate gov-
ernance. Think of this as the active oversight of top manage-
ment decisions, corporate strategy, and financial reporting by
a company’s board of directors.
Diversity
The term workforce diversity describes the composition of
a workforce in terms of gender, age, race, ethnicity, religion,
sexual orientation, and able-bodiedness.20 These demograph-
ics have changed considerably in recent years. Members of
minority groups now constitute more than one-fifth of the
Working Today 5
Loic Venance/AFP/Getty Images
Loic Venance/AFP/Getty Images
that may lead employers to discriminate are photos of women
showing pregnancies or children, and applicant names that are
associated with ethnic, racial, or religious communities.
What Do You Think?
Facebook offers privacy settings to shield from public consump-
tion information intended only for friends. But does this go far
enough to protect individual privacy? Is it ethical for employers
to use social media to “peek” at the personal lives of prospective
candidates? Should there be laws preventing them from doing
so? What about individual responsibility? Given so much public-
ity about social media use by recruiters, shouldn’t job seekers be
informed and aware enough to screen out potentially harmful
and discriminatory information? Are these job seekers at fault if
negative consequences result when they don’t?
Canadian population,21 and women make up almost half
(47 percent) of the Canadian workforce.22 By the year 2031, it is
predicted that up to 14.1 million people will be members of a
visible minority, approximately 3 in 10 Canadians. South Asians,
including Indians, Pakistanis, and Sri Lankans, are expected to
make up the largest visible minority group.23 Statistics Canada
projects that roughly 37 percent of the population will be at
least 65 years old.
Despite these changes, the way we deal with diversity in
the workplace remains complicated. Women now lead global
companies like IBM, PepsiCo, Xerox, and Kraft, but they hold
just 5 percent of the top jobs.24 The proportion of women at the
top is growing, but female CEOs also get fired at a higher rate
than their male counterparts.25
Why aren’t there more women, and people of colour, lead-
ing organizations? To what extent does diversity bias still influ-
ence recruitment and selection decisions? Researchers have
found that resumés of applicants with white-sounding first
names, such as Brett, receive 50 percent more responses from
employers than equivalent resumés with black-sounding first
names, such as Kareem.26
The stage for diversity bias is set by prejudice—the dis-
play of negative, irrational opinions and attitudes regarding
6 C HA PTER 1 Management Today
members of diverse populations. An example of bias is the
lingering prejudice against working mothers. The non-profit
Families and Work Institute reported that in 1977, 49 percent
of men and 71 percent of women believed that mothers can
be good employees; by 2008 the proportions had risen to 67
percent and 80 percent.27 Don’t you wonder why there isn’t 100
percent support for working mothers? And how do you account
for a study that sent faux resumés to recruiters and found that
the least desirable candidates were women with children?28
The inspiring story of one highly successful working mother is
in Management Is Real 1.3.
Prejudice becomes active discrimination when members
of some groups are unfairly treated and denied the full bene-
fits of organizational membership. One example of discrimina-
tion is a manager inventing reasons not to interview a visible
minority job candidate. Another example is a supervisor who
refuses to promote a working mother for fear that parent-
ing responsibilities will make it hard for her to do a good job.
This thinking shows a subtle form of discrimination called the
Management Is Real 1.3: Wisdom Learn from Role Models
“I’m going to start a company,” she announced one day.
Tonia Jahshan Turned Over a New Leaf
In 2006, Tonia Jahshan was working at a sales and marketing
agency she ran with her father. Because of a personal tragedy, she
was feeling lost and disengaged. She began reassessing her life—
asking whether she really wanted to sell electrical equipment for
the rest of her career.
To help change her dismal mood, she and her husband took
some time off and left their home in Ancaster, Ontario, for a get-
away to Halifax to spend some time at a bed and breakfast. That
little trip changed her life. For breakfast the host served a cup of
cream of Earl Grey tea. “I was blown away by the taste and smell,”
Jahshan recalls. She was so enthusiastic about the tea that she and
her husband drove to a little boutique an hour away to stock up
Courtesy of Steeped Tea, Inc.
and bring some home.
Within two weeks Tonia knew that those little leaves of aro-
matic pleasure were where her future would lie. “I’m going to start
a company,” she announced to her husband. “I’m going to have tea
parties and sell tea leaves … And I’m calling it ‘Steeped Tea.’”
Her early success was tantalizing. To accomplish her vision,
she turned to direct selling, similar to Avon or Tupperware par-
ties, where people would have tea parties in their homes and build
friendships. Jahshan knew she wanted a scalable business where
people could earn on their own terms and she could grow the com-
pany as sales increased.
By 2010 her business was growing steadily, but she wasn’t
making any money. Tonia set out to add a second-in-command
to help clean up the books and streamline operations. She found
the perfect candidate in her husband, who had just finished his
MBA. Her husband joined the company as CEO and helped manage
finances, negotiate with suppliers, streamline the product line, and
build more efficient management systems.
In 2012, she took the risk of appearing on the TV show Drag-
ons’ Den, where she boldly presented her business model and
vision. The result was that Dragons David Chilton and Jim Treliving
glass ceiling effect, an invisible barrier or ceiling that prevents
women and visible minorities from rising to top jobs.
Scholar Judith Rosener warns that discrimination of any
sort leads to “undervalued and underutilized human capital.”29
To avoid this problem, the position of chief diversity officer, or
CDO, is gaining stature in organizations. Its presence recog-
nizes that diversity is not only a moral issue but an opportu-
nity for real performance gains. The job of CDO is to make sure
the work environment allows women and members of other
groups to flourish, and fully utilizes their talents.30
Careers and Connections
When the economy is weak and employment markets are
tight, the task of finding a career entry point can be daunting.
It always pays to remember the importance of online resumés
and job searches, and the power of social networking with
established professionals. In addition, job seekers should
Courtesy of Steeped Tea, Inc.
invested $250,000 for 20 percent of the business. Although she had
several years of very hard work, and she weathered some finan-
cially tight situations, today she has an award-winning business
with annual sales of $20 million and a workforce of 9,000 salespeo-
ple in Canada and the United States.
Tonia’s company has been recognized year over year as one
of PROFIT 500 Canada’s Fastest-Growing Companies, and she was
proclaimed as Canada’s #1 Female Entrepreneur by W100. She has
also received the Ernst and Young Entrepreneurial Winning Women
award and has been listed as 1 of 6 Women to Watch on forbes.com.
Tonia lives in Hamilton, Ontario, with her husband Hatem and their
three kids–Layla, Jenna, and Sami.31
Find Inspiration
Tonia Jahshan’s trajectory from salesperson to woman entrepreneur
of the year is impressive. What career lessons are here for others to
follow? Which special skills and personal characteristics may have
helped Jahshan grow into a leadership role? She’s a young Canadian
woman with three children and a husband. How can her success in
an entrepreneurial environment serve as a role model for others?

consider internships as pathways to first-job placements. But
everything still depends on the mix of skills you can offer a
potential employer and how well you communicate those skills
during the recruitment process. Picture yourself in a job inter-
view. The recruiter asks this question: “What can you do for
us?” How do you reply? Your answer can set the stage for career
success … or for something less.
British scholar and consultant Charles Handy uses the
analogy of a shamrock to highlight the challenges of develop-
ing skill portfolios that fit the new workplace.32 The first leaf in
the shamrock is a core group of permanent, full-time employ-
ees who follow standard career paths. The number of people in
this first leaf is shrinking.33 They are being replaced by a second
leaf of “freelancers” and “independent contractors” who offer
specialized skills and talents on a contract basis, then change
employers when projects are completed.34 Full-time employees
are also being replaced by a third leaf of temporary part-timers.
They often work without benefits and are the first to lose their
jobs when an employer runs into economic difficulties.
Most people hired today will have to be able to succeed
in a free-agent economy, one where people change jobs
more often and work on flexible contracts with a shifting mix
of employers over time. Skills like those in the list below must
be kept up to date and portable.35 They can’t be gained once
and then forgotten. They must be carefully maintained and
upgraded all the time. All this places a premium on your capac-
ity for self-management—being able to assess yourself realis-
tically, recognize strengths and weaknesses, make constructive
changes, and manage your personal development. Here are
the early career survival skills to acquire.
• Mastery: You need to be good at something. You need to be
able to contribute real value to your employer.
• Networking: You need to know people and get connected.
Networking with others within and outside the organiza-
tion is essential.
• Entrepreneurship: You must act as if you are running your
own business, spotting ideas and opportunities and pur-
suing them.
• Technology: You have to embrace technology. You have to
stay up to date and fully utilize all that is available.
• Marketing: You need to communicate your successes and
progress—both yours personally and those of your work
team.
• Renewal: You need to learn and change continuously,
always improving yourself for the future.
Connections count for a lot in the free-agent economy.
They open doors to opportunities and resources that otherwise
wouldn’t be available. People with connections gain access to
valuable information about potential jobs and often score more
interviews and better jobs than those without connections.
While in the past the best connections may have been limited
to people who had gone to the “right” kinds of schools or came
from the “right” kinds of families, this is no longer the case.
Social networking tools—such as LinkedIn, Facebook, and
WeChat that connect users with similar interests have become
Organizations 7
the great equalizer. They make the process of connecting much
easier and more democratic than ever before. Importantly, they
are readily available ways for you to make connections that can
help with job searches and career advancement.
Learning Check
LEARNING OBJECTIVE 1.1 Summarize the challenges
of developing and maintaining career readiness in the new
economy.
Be Sure You Can • describe how intellectual capital, ethics, diver-
sity, globalization, technology, and the changing nature of careers
influence working in the new economy • define intellectual capital,
workforce diversity, and globalization • explain how prejudice, dis-
crimination, and the glass ceiling can hurt people at work
1.2 Organizations
LEARNING OBJECTIVE 1.2
Describe what organizations are like as work settings.
Learn More About
Organizational purpose • Organizations as
systems • Organizational performance • Changing
nature of organizations
In order to make good employment choices and perform well
in a career, you need to understand the nature of organizations
and recognize how they work as complex systems.
Organizational Purpose
An organization is a collection of people working together to
achieve a common purpose. It is a unique social phenomenon
that enables its members to perform tasks far beyond the reach
of individual accomplishment. This description applies to orga-
nizations of all sizes and types that make up the life of any com-
munity, from large corporations to small businesses, as well as
such non-profit organizations as schools, government agen-
cies, and hospitals.
The broad purpose of any organization is to provide goods
or services of value to customers and clients. A clear sense of
purpose tied to “quality products and services,” “customer satis-
faction,” and “social responsibility” can be an important source
of organizational strength and performance advantage. IBM’s
former CEO, Samuel Palmisano, once said: “One simple way
to assess the impact of any organization is to ask the question:
How is the world different because it existed?”36 Whole Foods
8 C HA PTER 1 Management Today

The environment The organization The environment

supplies creates value consumes

Resource inputs Product outputs

People Work Finished
Money activities turn goods
Materials resources and
Technology into outputs services
Information
Transformation process

Consumer feedback

FIGURE 1.1 Organizations as open systems interacting with their environments.

founder John Mackey answers by saying: “I think that business
has a noble purpose. It means that businesses serve society.
They produce goods and services that make people’s lives bet-
ter.” On the Whole Foods website this is stated as a commitment
to “Whole Foods—Whole People—Whole Planet.”37
A story recounted on a Disneyland blog provides an excel-
lent example of an organization’s development of a “purpose.”
Joseph Van Arsdale France, tasked with developing a training
program for park employees, came up with a new idea for a
purpose for Disneyland. As he was preparing to pitch his idea to
Walt and Roy Disney, Van Arsdale France recalled, “My goal, as
I saw it, was to get everyone we hired to share in an intangible
dream, and not just working for a paycheck.” Van Arsdale France
remembering the moment: “And here were top executives, all
of them right there, and I had to get up and say, ‘And now our
theme: the purpose of Disneyland is to create happiness for oth-
ers.’ And you see, the beautiful thing about saying, ‘We’re going
to create happiness’ was then I could say, ‘Look, you may park
cars, clean up the place, sweep the place, work graveyard and
everything else, but whatever you do is contributing to creating
happiness for others.’” Van Arsdale France’s insight was to cre-
ate a single, unifying purpose that connected every employee
with the emotional aspirations of each guest, with the goal of
making Disneyland the happiest place on earth.38
Organizations as Systems
All organizations are open systems that interact with their
environments. They do so in a continual process of obtain-
ing resource inputs—people, information, resources, and
capital—and transforming them into outputs in the form of fin-
ished goods and services for customers.39
As shown in Figure 1.1, feedback from the environment
indicates how well an organization is doing. When Starbucks
started a customer blog, for example, requests for speedier
service popped up. The company quickly made changes that
eliminated requiring signatures on credit card charges less
than $25. Salesforce.com is another company that thrives on
feedback. It set up a website called Idea Exchange to get cus-
tomer suggestions, even asking them at one point to vote on
a possible name change—the response was “No!”40 Gathering
and listening to customer feedback is important; without loyal
customers, a business can’t survive.
Organizational Performance
Organizations create value when they use resources well to
produce good products and take care of their customers. When
operations add value to the original cost of resource inputs,
then a business organization can earn a profit—by selling a
product for more than the costs of making it, and a non-profit
organization can add wealth to society—by providing a public
service like fire protection that is worth more than its cost.
One of the most common ways to assess performance
by and within organizations is productivity. It measures the
quantity and quality of outputs relative to the cost of inputs.
And as Figure 1.2 shows, productivity involves both perfor-
mance effectiveness and performance efficiency.
Performance effectiveness is an output measure of
task or goal accomplishment. If you are working as a software

Effective but not efficient Effective and efficient

• Goals achieved • Goals achieved
High
• Resources wasted • No wasted resources
Goal High productivity
Attainment
Neither effective nor efficient Not effective but efficient
Low • Goals not achieved • Goals not achieved
• Resources wasted • No wasted resources

Poor Good
Resource Utilization

FIGURE 1.2 Productivity and the dimensions of organizational performance.


engineer for a computer game developer, performance effec-
tiveness may mean that you meet a daily production target in
terms of the quantity and quality of lines of code written. This
productivity helps the company meet customer demands for
timely delivery of high-quality gaming products.
Performance efficiency is an input measure of the
resource costs associated with goal accomplishment. Returning
to the gaming example, the most efficient software production
is accomplished at a minimum cost in materials and labour. If
you are producing fewer lines of code in a day than you are capa-
ble of, this amounts to inefficiency; if you make lots of mistakes
that require extensive rewrites, this is also inefficient work. All
such inefficiencies drive up costs and reduce productivity.
Changing Nature of Organizations
Change is a constant feature of our society, and organizations
are no exception. The following list shows some organizational
trends and transitions relevant to the study of management.41
• Focus on valuing human capital: The premium is on high-
involvement work settings that rally the knowledge, expe-
rience, and commitment of all members.
• Demise of “command-and-control”: Traditional top-down
“do as I say” bosses are giving way to participatory bosses
who treat people with respect.
• Emphasis on teamwork: Organizations are becoming less
hierarchical and more driven by teamwork that pools tal-
ents for creative problem solving.
• Pre-eminence of technology: Developments in computer
and information technology keep changing the way orga-
nizations operate and how people work.
• Importance of networking: Organizations and their mem-
bers are networked for intense, real-time communication
and coordination.
• New workforce expectations: The new generation of work-
ers is attentive to performance merit, concerned for work–
life balance, less tolerant of hierarchy, and more informal
than previous generations.
• Concern for sustainability: Social values call for more atten-
tion to the preservation of natural resources for future
generations and understanding how work affects human
well-being.
Learning Check
L E A RN I N G O BJ E CTI VE 1 . 2 Describe what organiza-
tions are like as work settings.
Be Sure You Can • describe how organizations operate as open
systems • explain productivity as a measure of organizational per-
formance • distinguish between performance effectiveness and per-
formance efficiency • list several ways in which organizations are
changing today
Managers 9
1.3 Managers
LEARNING OBJECTIVE 1.3
Discuss what it means to be a manager.
Learn More About
Importance of managers • Levels of managers
• Types of managers • Managerial performance
• Changing nature of managerial work
In an article titled “Putting People First for Organizational Suc-
cess,” Jeffrey Pfeffer and John F. Veiga argue forcefully that
organizations perform better when they treat their members
better.42 Managers in high-performing organizations don’t treat
people as costs to be controlled; they treat them as valuable
strategic assets to be carefully nurtured and developed. So,
who are today’s managers and just what do they do?
What Is a Manager?
You find them in all organizations and with a wide variety of job
titles—team leader, department head, supervisor, project man-
ager, president, administrator, and more. We call them man-
agers, people in organizations who directly support, supervise,
and help activate the work efforts and performance accom-
plishments of others. Whether they are called direct reports,
team members, work associates, or subordinates, these “other
people” are the essential human resources whose contributions
represent the real work of the organization. As pointed out by
management scholar Henry Mintzberg, being a manager remains
an important and socially responsible job. “No job is more vital
to our society than that of the manager,” he says. “It is the man-
ager who determines whether our social institutions serve us
well or whether they squander our talents and resources.”43
Levels of Managers
At the highest levels of business organizations, as shown in
Figure 1.3, we find a board of directors whose members are
elected by shareholders to represent their ownership interests.
In non-profit organizations such as a hospital or university, this
level is often called a board of trustees, and its members may
be elected by local citizens, appointed by government bodies,
or invited by existing members. The basic responsibilities of
board members are the same in both business and the public
sector—to make sure that the organization is always being well
run and managed in a lawful and ethical manner.44
Common job titles just below the board level are chief exec-
utive officer (CEO), chief operating officer (COO), chief financial
officer (CFO), chief information officer (CIO), chief diversity offi-
cer (CDO), president, and vice president. These top managers
constitute an executive team that reports to the board and is
10 C HA PTER 1 Management Today
Typical Business
Board of Directors
Chief Executive Officer
Top
President
Managers
Vice President
Division Manager
Middle
Regional Manager
Managers
Plant Manager
Department Head
First-line
Supervisor
Managers
Team Leader
Non-managerial
Workers
FIGURE 1.3 Management levels in typical business and non-profit
organizations.
responsible for the performance of an organization as a whole
or of one of its larger parts. It is common to find the members of
an organization’s top management team referred to as part of
the C-suite.
Top managers are supposed to set strategy and lead the
organization in a way that is consistent with its purpose and
mission. They should pay special attention to the external
environment and be alert to potential long-run problems and
opportunities. The best top managers are strategic thinkers
able to make good decisions under highly competitive and
even uncertain conditions. A CEO at Procter & Gamble once
said the job of top managers is to “link the external world with
the internal organization … make sure the voice of the con-
sumer is heard … shape values and standards.”45
Reporting to top managers are the middle managers, who
are in charge of relatively large departments or divisions consist-
ing of several smaller work units. Examples include clinic direc-
tors in hospitals; deans in universities; and division managers,
plant managers, and regional sales managers in businesses. Job
descriptions for middle managers may include working with top
managers, coordinating with peers, and supporting lower-level
team members to develop and pursue action plans that imple-
ment organizational strategies to accomplish key objectives.
A starting job in management typically involves serving
as a team leader or supervisor—someone in charge of a small
work group composed of non-managerial workers.46 Typical job
titles for these first-line managers include department head,
team leader, and supervisor. The leader of an auditing team, for
example, is considered a first-line manager, as is the head of an
academic department in a university. Even though most people
enter the workforce as technical specialists such as engineer,
market researcher, or systems analyst, at some point they prob-
ably advance to positions of initial managerial responsibility.
Types of Managers
Many types of managers comprise an organization. Line manag-
ers are responsible for work that makes a direct contribution to the
organization’s outputs. For example, the president, retail manager,
and department supervisors of a local department store all have
Typical Non-profit
Board of Trustees
Executive Director
President, Administrator
Vice President
Division Manager
Regional Manager
Branch Manager
Department Head
Supervisor
Team Leader
line responsibilities. Their jobs in one way or another are directly
related to the sales operations of the store. Staff managers, by
contrast, use special technical expertise to advise and support the
efforts of line workers. In a department store chain like Nordstrom
or Hudson’s Bay, the corporate director of human resources and
chief financial officer would have staff responsibilities.
Functional managers have responsibility for a single
area of activity such as finance, marketing, production, human
resources, accounting, or sales. General managers are respon-
sible for activities covering many functional areas. An example
is a plant manager who oversees everything, including purchas-
ing, manufacturing, human resources, finance, and accounting.
In public or non-profit organizations, managers may be called
administrators. Examples include hospital administrators,
public administrators, and city administrators.
Managerial Performance
All managers help people, working individually and in teams,
to perform. They do this while being personally accountable for
results achieved. Accountability is the requirement of one per-
son to answer to a higher authority for performance results in
his or her area of work responsibility. This accountability flows
upward in the traditional organizational structure (Figure 1.4).
The team leader is accountable to a middle manager, the mid-
dle manager is accountable to a top manager, and even the top
manager is accountable through corporate governance to a
board of directors or board of trustees.
But what, you might ask, constitutes excellence in man-
agerial performance? When is a manager “effective”? A good
answer is that effective managers successfully help others
achieve both high performance and satisfaction in their work.
This dual concern for performance and satisfaction introduces
quality of work life (QWL) as an indicator of the overall quality
of human experiences at work. A “high-QWL” workplace offers
such things as respect, fair pay, safe conditions, opportunities
to learn and use new skills, room to grow and progress in a
career, and the protection of individual rights and wellness.
Scholar Jeffrey Pfeffer considers QWL a high-priority issue of
human sustainability. Why, he asks, don’t we give more attention
 Managers 11

HIGHER really manage them in a typical way; they largely run them-
MANAGEMENT selves. I help them in dealing with obstacles they face, or in
making the most of opportunities they find.”48 These comments
describe a workplace where the best managers are known more
Accountability
for helping and supporting than for directing and order-giving.
The words coordinator, coach, and team leader are heard as
often as supervisor or boss.
Manager The concept of the upside-down pyramid shown in
­Figure 1.5 fits well with the changing mindset of managerial
work today. Notice that the operating and front-line workers
Dependency are at the top of the upside-down pyramid, just below the cus-
tomers and clients they serve. They are supported in their work
efforts by managers below them. These managers aren’t just
order-givers; they are there to mobilize and deliver the support
others need to do their jobs best and serve customer needs.
Sitting at the bottom are top managers and C-suite executives;
their jobs are to support everyone and everything above them.
Work team members
The upside-down pyramid view leaves no doubt that the entire
organization is devoted to serving customers and that the job
FIGURE 1.4 Accountability in the traditional organization. of managers is to support the workers who make this possible.

to human sustainability and “organizational effects on employee

health and mortality”?47 What do you think? Should managers be Learning Check
held accountable not just for performance accomplishments of
their teams and work units, but also for the human sustainability LEAR NING OBJECT IV E 1.3 Discuss what it means to be
of those who work with and for them? In other words, shouldn’t a manager.
productivity and quality of working life go hand in hand?
Be Sure You Can • describe the various types and levels of manag-
ers • define accountability and quality of work life, and explain their
Changing Nature of Managerial Work importance to managerial performance • discuss how managerial
work is changing today • explain the role of managers in the upside-
Cindy Zollinger, president and CEO of Cornerstone Research, down pyramid view of organizations
directly supervises more than 20 people. But, she says: “I don’t

Customers and clients

Ultimate beneficiaries of the organization’s efforts

Serve

Front-line operating workers

Do work directly affecting customer/client satisfaction

Support

Team leaders and managers

Help the operating workers do their jobs
and solve problems

Support

Top managers
Keep organization’s
mission and
strategies
clear

FIGURE 1.5 The organization viewed as an upside-down pyramid.

12 C HA PTER 1 Management Today

Philip A. Laskawy launched a diversity task force with the

1.4 The Management Process planning objective to reduce turnover rates for women. When
the task force began its work, this turnover was running some
L EARNING OBJECTIVE 1.4 22 percent per year, and it cost the firm about 150 percent of
a departing employee’s annual salary to hire and train each
replacement. Laskawy considered this performance unaccept-
Explain the functions, roles, and activities of managers.
able and put plans in place to improve it.

Organizing Once plans are set, they must be imple-

Learn More About
Functions of management • Managerial roles and
activities • Managerial agendas and networks
The ultimate “bottom line” in every manager’s job is to help
an organization achieve high performance by best utilizing its
human and material resources. This is accomplished through
the four management process functions of planning, organiz-
ing, leading, and controlling.
Functions of Management
All managers, regardless of title, level, type, and organizational
setting, are responsible for the four management functions
shown in Figure 1.6. These functions are continually engaged
in as a manager moves from task to task and opportunity to
opportunity in his or her work.
Planning Planning is the process of setting performance
objectives and determining what actions should be taken to
accomplish them. Through planning, a manager identifies
desired results—goals and objectives, and ways to achieve
them—action plans.
There was a time, for example, when top management
at EY (previously Ernst & Young) became concerned about
the firm’s retention of female professionals.49 Then-chairman
mented. This begins with organizing, the process of assigning
tasks, allocating resources, and coordinating the activities of
individuals and groups to accomplish plans. Organizing is how
managers put plans into action by defining jobs and tasks,
assigning them to responsible persons, and then providing
support such as technology, time, and other resources. One
Canadian company’s innovative way of organizing employee
time is discussed in Management Is Real 1.4.
Many organizations are being recognized for the plans
they are making and the steps they are taking to build diverse
and inclusive workplaces. For instance, the William Osler
Health System in Brampton, Ontario, was recently recog-
nized as one of Canada’s best diversity employers. Its Diver-
sity Advisory Council rotates co-chairs in order to increase
engagement and share additional diverse perspectives.
Seventy employees volunteer as diversity champions who
are responsible for adopting diversity and equity best
practices. Most recently they created a multidisciplinary
LGBTQ2+ advisory group with both clinical and non-clinical
staff to develop guidelines for working with and caring for
LGBTQ2+ communities. They also have diversity programs
for people with disabilities, members of visible minorities,
LGBTQ2+ newcomers, and members of linguistic, cultural,
and religious minorities.50
Leading Leading is the process of arousing people’s
enthusiasm and inspiring their efforts to work hard to fulfill
plans and accomplish objectives. Managers lead by building
commitments to a common vision, encouraging activities that

Planning
Setting performance
objectives and deciding
how to achieve them

Controlling Organizing
The
Measuring performance Management Arranging tasks, people,
and taking action to Process and other resources
ensure desired results to accomplish the work

Leading
Inspiring people to
work hard to achieve
high performance

FIGURE 1.6 Four functions of management—planning, organizing, leading, and controlling.


Management Is Real 1.4: Choices Think before You Act
“We trust our employees like owners and they pay that
trust back to us, acting like owners.”
Want Vacation? Take as Much as You Want
BuildDirect, a Vancouver-based company that sells home improve-
ment and building materials at wholesale prices, offers its 300
employees access to unlimited paid vacation. CEO Jeff Booth
believes in the integrity of his employees. “Instead of measuring
hours we measure output.”
The policy means that all employees, even the staff in the
warehouse, have access to the plan.
“We trust our employees like owners,” says Booth, “and they
pay that trust back to us, acting like owners.” The only limitation
support goals, and influencing others to do their best work on
the organization’s behalf.
Controlling The management function of controlling is
the process of measuring work performance, comparing results
with objectives, and taking corrective action as needed. Man-
agers exercise control by staying in active contact with people
as they work, gathering and interpreting performance mea-
surements, and using this information to make constructive
changes. Control is indispensable in the management process.
Things don’t always go as anticipated, and plans must often be
modified and redefined to fit new circumstances.
At EY, Laskawy and Deborah K. Holmes, who was then the
head of the firm’s Office of Retention, documented what the
firm’s retention rates for women were when EY started the new
programs. This gave them a clear baseline against which they
were able to track progress. They regularly measured reten-
tion rates for women and compared them with the baseline.
They were able to identify successes and pinpoint where they
needed to further improve their work–life balance programs.
Over time, collected data showed that turnover rates for
women were reduced at all levels.
Managerial Roles and Activities
The management process and its responsibilities of planning,
organizing, leading, and controlling are more complicated
than they appear at first glance. They must be successfully
Interpersonal roles Informational roles
How a manager interacts How a manager exchanges
with other people and processes information
Figurehead Monitor
Leader Disseminator
Liaison Spokesperson
FIGURE 1.7 Mintzberg’s common roles filled by management.
The Management Process 13
is they can take off no more than four consecutive weeks, as many
times over the course of the year, although if a manager thought a
request was reasonable, he or she could sign off for a longer period.
A policy of unlimited vacation is an indication of the changing
nature of the workplace.
What’s Your Take?
So, is this approach to vacation time something that more
employers should be planning? Is it the next hot thing that will
be sought by new graduates? What are the risks and limits for
employers, if any? How about the “motivation” issues? Would
this be appealing for you, something that would keep you pro-
ductive and loyal? If unlimited vacation time is such a good idea,
why aren’t more employers doing it?
accomplished during a workday that can be very challeng-
ing. In a classic book, The Nature of Managerial Work, McGill
researcher Henry Mintzberg describes the daily work of cor-
porate chief executives as follows: “There was no break in the
pace of activity during office hours. The mail … telephone calls
… and meetings … accounted for almost every minute from
the moment these executives entered their offices in the morn-
ing until they departed in the evenings.”51 Today, we might add
to Mintzberg’s list of executive preoccupations the relentless
“work anytime and anywhere” demands of smart phones, ever-
full email and voice mail inboxes, chat and instant message
streams, and social media alerts.
Managerial Roles In trying to better understand the
complex nature of managerial work, Mintzberg identified a set
of roles commonly filled by managers.52 Shown in Figure 1.7,
they describe how managers must be prepared to succeed
in a variety of interpersonal, informational, and decisional
responsibilities.
A manager’s interpersonal roles involve interactions with
people inside and outside the work unit. A manager fulfilling
these roles will be a figurehead, modelling and setting forth
key principles and policies; a leader, providing direction and
instilling enthusiasm; and a liaison, coordinating with others. A
manager’s informational roles involve the giving, receiving, and
analyzing of information. A manager fulfilling these roles will
be a monitor, scanning for information; a disseminator, sharing
information; and a spokesperson, acting as official communi-
cator. The decisional roles involve using information to make
Decisional roles
How a manager uses
information in decision
making
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
14 C HA PTER 1 Management Today
decisions to solve problems or address opportunities. A man-
ager fulfilling these roles will be a disturbance handler, deal-
ing with problems and conflicts; a resource allocator, handling
budgets and distributing resources; a negotiator, making deals
and forging agreements; and an entrepreneur, developing new
initiatives.
Managerial Activities Managers must not only mas-
ter key roles, they must implement them in intense and com-
plex work settings. Their work is busy, demanding, and stressful
at all levels of responsibility. The managers Mintzberg studied
had little time to themselves. In fact, unexpected problems and
constant requests for meetings consumed almost all available
time. A manager’s workday consisted of long hours, an intense
pace, fragmented and varied tasks, and having to juggle many
communication media and interpersonal relationships. In
short, their workdays were hectic; the pressure to continu-
ously improve performance was all-encompassing.53 Mintzberg
summarized his observations this way: “The manager can
never be free to forget the job, and never has the pleasure of
knowing, even temporarily, that there is nothing else to do… .
Managers always carry the nagging suspicion that they might
be able to contribute just a little bit more. Hence they assume
an unrelenting pace in their work.”54
Managerial Agendas and Networks
Scene: On the way to a meeting, a general manager bumped
into a colleague from another department. In a two-minute
conversation she used this opportunity to (a) ask two questions
and receive the information she needed; (b) reinforce their
good relationship by sincerely complimenting the colleague
on something he had recently done; and (c) get a commit-
ment from the colleague to do something else that the general
manager needed done. Analysis: This brief incident provides a
glimpse of an effective general manager in action. It also por-
trays two activities that consultant and scholar John Kotter
considers critical to a manager’s success—agenda setting and
networking.55
Through agenda setting, good managers develop action
priorities that include goals and plans spanning long and short
time frames. These agendas are usually incomplete and loosely
connected in the beginning, but they become more specific as
the manager uses information continually gleaned from many
different sources. The agendas are always present in the man-
ager’s mind and are played out or pushed ahead whenever an
opportunity arises, as in the preceding example.
Good managers implement their agendas by networking—
building and maintaining positive relationships with peo-
ple whose help may be needed to implement those agendas.
Such networking creates social capital—the ability to attract
support and help from others in order to get things done. In
the earlier example, the general manager received help from
a colleague who did not report directly to her. The manager’s
networks and social capital also include relationships she cul-
tivates with peers, higher-level executives, subordinates, and
members of their work teams, as well as with external custom-
ers, suppliers, and community representatives.
Learning Check
LEAR NING OBJECT IV E 1.4 Explain the functions, roles,
and activities of managers.
Be Sure You Can • define and give examples of each of the man-
agement functions—planning, organizing, leading, and controlling
• explain Mintzberg’s view of what managers do, including the 10
key managerial roles • explain Kotter’s points on how managers use
agendas and networks to fulfill their work responsibilities
1.5 Learning How to Manage
LEARNING OBJECTIVE 1.5
Summarize how we learn and use essential skills for career
success.
Learn More About
Lifelong learning • Management skills • Technical
skills • Human and interpersonal skills • Critical-
thinking skills
A survey of the CEOs of major employers like Accenture, Unile-
ver, and Liberty Mutual Insurance revealed dissatisfaction with
what they are seeing in business school students. Top criticisms
were a lack of self-awareness, poor teamwork and critical-
thinking skills, and an absence of creativity.56 There’s no doubt
that career success in today’s turbulent times depends greatly
on learning—changing behaviour through experience. But
learning begins with self-awareness—a real, unbiased under-
standing of one’s strengths and weaknesses. And when it
comes to self-awareness in a management context, the focus
of the learning is on the skills and competencies required to
help the manager to confidently deal with the complexities of
human behaviour and problem solving in organizations.
Lifelong Learning
As you read the various chapters and special features in this
book and participate in course discussions and activities, be
sure to self-assess in regard to your career readiness and the
learning that might advance that success now and in the future.
And don’t forget, it’s not just formal learning in the class-
room that counts. The events of everyday life—from full-time
and part-time jobs and customer interactions to teamwork
in school, sports, and leisure activities—are rich in learning
opportunities … if you take advantage of them. There’s a lot
to be gained from making a sincere commitment to lifelong
learning—the process of continuous learning from all of our
daily experiences and opportunities. Is this a challenge you are
confident in being able and eager to meet? Do you have what

Lower-level Middle-level
managers managers
Conceptual skills—The ability to think analytically and achieve integrative problem solving
Human skills—The ability to work well in cooperation with other persons; emotional intelligence
Technical skills—The ability to apply expertise and perform a special task with proficiency
FIGURE 1.8 Katz’s essential managerial skills—technical, human, and conceptual.
the world’s largest executive recruiting firm, Korn/Ferry Inter-
national, calls learning agility, defined as the “willingness to
grow, to learn, to have insatiable curiosity”?57
Management Skills
A skill is the ability to translate knowledge into action that
results in desired performance.58 Harvard scholar Robert L.
Katz divides the essential, or baseline, skills of managers into
three categories: technical, human, and conceptual.59 He sug-
gests that all three sets of skills are necessary for management
success, and that their relative importance varies by level of
managerial responsibility, as shown in Figure 1.8.
Technical Skills
A technical skill is the ability to use a special proficiency or
expertise to perform particular tasks that bring value to an
employer. Accountants, engineers, market researchers, finan-
cial planners, and systems analysts, for example, possess
technical skills within their areas of expertise. Knowing how to
write a business plan with a cash flow projection, use statis-
tics to analyze data from a market survey, update software on a
computer network, and deliver a persuasive oral presentation
are also technical skills. Although initially acquired through for-
mal education, technical skills can become quickly outdated
in today’s world. It is important to nurture and develop them
through ongoing learning that takes full advantage of training
and job experiences.
Figure 1.8 shows that technical skills are very important at
job entry and early career levels. As you look at this figure, take
a quick inventory of your technical skills. You must be able to
describe these to a prospective employer when interviewing
for a new job. Get prepared by asking yourself this all-important
self-assessment question: “What, exactly, can I do for a pro-
spective employer?”
Human and Interpersonal Skills
Recruiters today put a lot of emphasis on a job candidate’s
“soft” skills—things like the ability to communicate, collab-
orate, and network; to lead and contribute to teams; and to
engage others with a spirit of trust, enthusiasm, and positivity.60
Katz called the skills needed to work well in cooperation with
Learning How to Manage 15
Top-level
managers
others human skills. As pointed out in Figure 1.8, the interper-
sonal nature of managerial work makes human skills consis-
tently important across all levels of managerial responsibility.
A manager with good human skills will have a high degree
of emotional intelligence, defined by scholar and consultant
Daniel Goleman as the “ability to manage ourselves and our
relationships effectively.”61 Strength or weakness in emotional
intelligence shows up as the ability to recognize, understand,
and manage feelings while interacting and dealing with others.
Someone high in emotional intelligence will know when her or
his emotions are about to become disruptive, and act to con-
trol them. This same person will sense when another person’s
emotions are negatively influencing a relationship, and act to
understand and better deal with them.62 Check your interper-
sonal skills and emotional intelligence by asking and answering
this self-assessment question: “Just how well do I relate with
and work with others in team and interpersonal situations?”
You can also use the tool shown in Management Is Real 1.5.
Critical-Thinking Skills
The ability to think analytically is a conceptual skill. It involves
the capacity to break problems down into smaller parts, see the
relations between the parts, and recognize the implications of a
problem with any one part for the others. We call this a critical-
thinking skill, and it is a top priority for recruiters screening
candidates for sought-after jobs.63 Annmarie Neal, Vice Presi-
dent, Cisco Center for Collaborative Leadership within Human
Resources, describes it as the ability to “approach problems as
a learner as opposed to a knower” and as “taking issues and
situations and problems and going to root components …
looking at it [a problem] from a systematic perspective and
not accepting things at face value … being curious about why
things are the way they are and being able to think about why
something is important.”64
Figure 1.8 shows that conceptual skills gain in impor-
tance as one moves up from lower to higher levels of manage-
ment. This is because the problems faced at higher levels of
responsibility are often ambiguous and unstructured, full of
complications and interconnections, and lead to longer-term
consequences. The end-of-chapter features—Manage a Crit-
ical Incident and Analyze the Case Study—are ways to further
develop your conceptual skills in management. And the relevant
self-assessment question to ask and honestly answer is: “Am I
16 C HA PTER 1 Management Today

This is your
career readiness

Strengths Weaknesses
Brainstorm—your strengths Brainstorm—your weaknesses
Plan—action strategies to make best Plan—action strategies to eliminate
use of them or overcome them

Opportunities Threats
Brainstorm—your career opportunities Brainstorm—your career threats
Plan—action strategies to make best Plan—action strategies to avoid or
use of them overcome them

This is your
career environment

FIGURE 1.9 Using a Personal SWOT Analysis for Strategic Career Planning

developing the strong critical-thinking and problem-solving and Threats. When applied to you and your career, it is a powerful
capabilities I will need for long-term career success?” way to self-assess and self-regulate to achieve your goals.

Career Readiness Skills This book is filled with

future value. Virtually everything we will discuss can be applied
to managing yourself in daily living as well as in a career. Now is
the best time to give serious attention to your career readiness
and start thinking about the strategic management of your
future. The goal is to put skills, competencies, and aspirations
together with learning agility so that you can always move for-
ward with confidence, even as things change around you.
Take a good look at Figure 1.9. It shows a strategic manage-
ment tool called SWOT analysis that can help you stay on track
with career readiness. A good SWOT analysis identifies individual
Strengths and Weaknesses, as well as environmental Opportunities
Learning Check
LEAR NING OBJECT IV E 1.5 Summarize how we learn
and use essential skills for career success.
Be Sure You Can • discuss the career importance of learning and
lifelong learning • define three essential managerial skills—technical,
human, and conceptual skills • explain how these skills vary in impor-
tance across management levels • define emotional intelligence as an
important human skill

Management Is Real 1.5: Insight Keep Learning about Yourself

Self-awareness helps us avoid seeing ourselves more

favourably than is justified. Known
Blind Open
to
Spot Area
Self-Awareness and the Johari Window others

An important career skill, self-awareness can be easy to talk about

but hard to master. Self-awareness helps us build on strengths and Unknown
overcome weaknesses, and it helps us avoid seeing ourselves more to The Hidden
others Unknown Self
favourably than is justified.
How often do you take a critical look at your attitudes,
be­haviours, skills, personal characteristics, and accomplishments?
Unknown to you Known to you
When was the last time you thought about them from a career
perspective—trying to assess them both as you see them and as FIGURE 1.10 Johari Window
others do?
Exploring your Johari Window (see Figure 1.10) is one way to
gain more self-awareness. It’s a way of comparing what we know self—the person you want or hope to be. It also means knowing who
about ourselves with what others know about us. The “open” areas you really are in the eyes of others and as defined by your actions.
known to ourselves and others are often small. The “blind spot,”
“the unknown,” and the “hidden” areas can be quite large. They Get to Know Yourself Better
challenge our capacities for self-discovery. Map your Johari Window. Make notes on your “Open Area” and
Self-awareness is a pathway to adaptability, something we need “Hidden Self.” Speculate about your “Unknown.” Ask friends, family,
to be always open to in changing times. The Johari Window reminds and co-workers for insights to your “Blind Spot.” Write a summary of
us that true self-awareness means not just knowing your idealized what you learn about possible career strengths and weaknesses.
    Management Learning Review: Get Prepared for Quizzes and Exams
Management Learning Review: Get Prepared
for Quizzes and Exams
Summary
LEARNING OBJECTIVE 1.1 Summarize the challenges of
developing and maintaining career readiness in the new economy.
• Work in the new economy is increasingly knowledge based, and
intellectual capital is the foundation of organizational performance.
• Organizations must value the talents of a workforce whose mem-
bers are increasingly diverse with respect to gender, age, race and
ethnicity, able-bodiedness, and lifestyles.
• The forces of globalization are bringing increased interdependen-
cies among nations and economies, as customer markets and
resource flows create intense business competition.
• Ever-present developments in information technology are reshap-
ing organizations, changing the nature of work, and increasing the
value of knowledge workers.
• Society has high expectations for organizations and their mem-
bers to perform with commitment to high ethical standards and
in socially responsible ways.
• Careers in the new economy require great personal initiative to
build and maintain skill “portfolios” that are always up to date
and valuable in a free-agent economy.
For Discussion What career risks and opportunities is globaliza-
tion creating for today’s post-secondary graduates?
L E A RN I N G O BJ E CTI VE 1 . 2 Describe what organiza-
tions are like as work settings.
• Organizations are collections of people working together to
achieve a common purpose.
• As open systems, organizations interact with their environments
in the process of transforming resource inputs into product and
service outputs.
• Productivity is a measure of the quantity and quality of work per-
formance, with resource costs taken into account.
• High-performing organizations achieve both performance effec-
tiveness in terms of goal accomplishment, and performance effi-
ciency in terms of resource utilization.
For Discussion When is it acceptable to sacrifice performance effi-
ciency for performance effectiveness?
L E A RN I N G O BJ E CTI VE 1 . 3 Discuss what it means to
be a manager.
• Managers directly support and facilitate the work efforts of other
people in organizations.
17
• Top managers scan the environment, create strategies, and
emphasize long-term goals; middle managers coordinate activi-
ties in large departments or divisions; team leaders and supervi-
sors support the performance of front-line workers at the team or
work-unit level.
• Functional managers work in specific areas such as finance or
marketing; general managers are responsible for larger multi-
functional units; administrators are managers in public or non-
profit organizations.
• The upside-down pyramid view of organizations places operat-
ing workers at the top, serving customer needs while being sup-
ported from below by various levels of management.
• The changing nature of managerial work emphasizes being good
at coaching and supporting others, rather than simply directing
and giving orders.
For Discussion In what ways should the work of a top manager dif-
fer from that of a team leader?
LEAR NING OBJECT IV E 1.4 Describe the functions,
roles, and activities of managers.
• The management process consists of the four functions of plan-
ning, organizing, leading, and controlling.
• Planning sets the direction; organizing assembles the human and
material resources; leading provides the enthusiasm and direc-
tion; controlling ensures results.
• Managers implement the four functions in daily work that is often
intense and stressful, involving long hours and continuous per-
formance pressures.
• Managerial success requires the ability to perform well in inter-
personal, informational, and decision-making roles.
• Managerial success also requires the ability to build interper-
sonal networks and use them to accomplish well-selected task
agendas.
For Discussion How might the upside-down pyramid view of orga-
nizations affect a manager’s approach to planning, organizing, lead-
ing, and controlling?
LEAR NING OBJECT IV E 1.5 Summarize how we learn
and use essential skills for career success.
• Careers in the new economy demand continuous attention to life-
long learning that can come from, and be applied to, all aspects
of daily experience and job opportunities.
18 C HA PTER 1 Management Today
• The three main types of skills considered essential for managers
are broadly described as technical—the ability to use expertise;
human—the ability to work well with other people, including
emotional intelligence; and conceptual—the ability to analyze
and solve complex problems with critical thinking.
Chapter Glossary
Accountability The requirement to show per-
formance results to a supervisor.
Administrator A manager in a public or non-
profit organization.
Agenda setting The development of action
priorities for accomplishing goals and plans.
Board of directors A group of people who
are supposed to make sure an organization is
well run and managed in a lawful and ethical
manner.
Commitment The degree to which one works
to apply their talents and capabilities to import-
ant tasks.
Competency One’s personal talents or job-
related capabilities.
Conceptual skill The ability to think analyti-
cally to diagnose and solve complex problems.
Controlling The process of measuring per-
formance and taking action to ensure desired
results.
Corporate governance The active oversight
of management decisions and performance by
a company’s board of directors.
Discrimination The active denial of full bene-
fits of organizational membership to members
of certain groups.
Effective manager A manager who helps oth-
ers achieve high performance and satisfaction
at work.
Emotional intelligence The ability to manage
ourselves and our relationships effectively.
Ethics The moral standards of what is “good”
and “right” in one’s behaviour.
Fourth Industrial Age Our current era, in
which the cloud, mobile Internet, automation,
robotics, and artificial intelligence are the driv-
ing forces of change.
Free-agent economy An economy in which
people change jobs more often, and many work
on independent contracts with a shifting mix of
employers.
Functional managers Managers who are
responsible for one area, such as finance, mar-
keting, production, personnel, accounting, or
sales.
General managers Managers who are respon-
sible for complex, multifunctional units.
• Human skills are equally important for all management levels,
whereas conceptual skills gain importance at higher levels and
technical skills gain importance at lower levels.
For Discussion Which management skills and competencies do
you consider the most difficult to develop, and why?
Glass ceiling effect An invisible barrier limit-
ing career advancement of women and mem-
bers of visible minorities.
Globalization The worldwide interdepen-
dence of resource flows, product markets, and
business competition.
Human skill The ability to work well in
cooperation with other people.
Intellectual capital The collective brainpower
or shared knowledge of a workforce.
Job migration What occurs when firms shift
jobs from a home country to foreign ones.
Knowledge worker Someone whose mind is
a critical asset to employers.
Leading The process of arousing enthusiasm
and inspiring efforts to achieve goals.
Learning A change in behaviour that results
from experience.
Lifelong learning Continuous learning from
daily experiences.
Line managers Managers who directly con-
tribute to producing the organization’s goods
or services.
Management process Planning, organizing,
leading, and controlling the use of resources to
accomplish performance goals.
Manager A person who supports, activates,
and is responsible for the work of others.
Middle managers Managers who oversee the
work of large departments or divisions.
Networking The process of creating positive
relationships with people who can help advance
agendas.
Open system A system that transforms
resource inputs from the environment into
product outputs.
Organization A collection of people working
together to achieve a common purpose.
Organizing The process of defining and
assigning tasks, allocating resources, and pro-
viding resource support.
Performance effectiveness An output mea-
sure of task or goal accomplishment.
Performance efficiency An input mea-
sure of resource cost associated with goal
accomplishment.
Planning The process of setting goals and
objectives and making plans to accomplish
them.
Prejudice The display of negative, irra-
tional attitudes toward members of diverse
populations.
Productivity The quantity and quality of
work performance, with resource utilization
considered.
Quality of work life The overall quality of
human experiences in the workplace.
Reshoring What occurs when firms move jobs
back home from foreign locations.
Self-management The ability to understand
oneself, exercise initiative, accept responsibility,
and learn from experience.
Shamrock organization An organization that
operates with a core group of full-time long-
term workers supported by others who work on
contracts and part-time.
Skill The ability to translate knowledge into
action that results in desired performance.
Social capital A capacity to get things done
with the support and help of others.
Social networking The use of dedicated web-
sites and applications to connect people having
similar interests.
Staff managers Managers who use special
technical expertise to advise and support line
workers.
Team leaders Leaders who report to mid-
dle managers and supervise non-managerial
workers.
Tech IQ The ability to use technology and to
stay updated as technology continues to evolve.
Technical skill The ability to use expertise to
perform a task with proficiency.
Top managers Managers who guide the per-
formance of the organization as a whole or of
one of its major parts.
Upside-down pyramid A view of organiza-
tions that shows customers at the top being
served by workers who are supported by
managers.
Workforce diversity Workers’ differences in
terms of gender, race, age, ethnicity, religion,
sexual orientation, and able-bodiedness.
    Management Learning Review: Get Prepared for Quizzes and Exams 19

Self-Test 1

Multiple-Choice Questions c. are never free from the pressures of performance

responsibility
1. The process of management involves the functions of planning,
d. have the advantages of flexible work hours
______, leading, and controlling.
12. When someone holds a negative attitude toward minorities, this
a. accounting c. innovating
is an example of ______. When a team leader with a negative attitude
b. creating d. organizing toward minorities makes a decision to deny advancement opportuni-
2. An effective manager achieves both high-performance results and ties to an East Asian team member, this is an example of ______.
high levels of ______ among people doing the required work. a. discrimination, prejudice
a. turnover c. satisfaction b. emotional intelligence, social capital
b. effectiveness d. stress c. performance efficiency, performance effectiveness
3. Performance efficiency is a measure of the ______ associated with d. prejudice, discrimination
task accomplishment.
13. Trends in the new workplace include which of the following?
a. resource costs c. product quality
a. More emphasis by managers on giving orders.
b. goal specificity d. product quantity
b. More attention by organizations to valuing people as human
4. The requirement that a manager answer to a higher-level boss for assets.
performance results achieved by a work team is called ______.
c. Less teamwork.
a. dependency c. authority
d. Less concern for work–life balance among the new generation
b. accountability d. empowerment of workers.
5. Productivity is a measure of the quantity and ______ of work pro- 14. The manager’s role in the “upside-down pyramid” view of orga-
duced, relative to the cost of inputs. nizations is best described as providing ______ so that workers can
a. quality c. timeliness directly serve ______.
b. cost d. value a. direction, top management c. support, customers
6. ______ managers pay special attention to the external environ- b. leadership, organizational d. agendas, networking
ment, looking for problems and opportunities and finding ways for the goals
organization to best deal with them. 15. The management function of ______ is being performed when a
a. Top c. Lower retail manager measures daily sales in the women’s apparel depart-
b. Middle d. First-line ment and compares them with daily sales targets.
7. The accounting manager for a local newspaper would be consid- a. planning c. controlling
ered a ______ manager, whereas the editorial director for sports would b. agenda setting d. delegating
be considered a ______ manager.
a. general, functional c. staff, line Short-Response Questions
b. middle, top d. senior, junior
16. Discuss the importance of ethics in the relationship between man-
8. When a team leader clarifies desired work targets and deadlines for agers and the people they supervise.
members of a work team, he or she is fulfilling the management func-
17. Explain how “accountability” operates in the relationship between
tion of ______.
(a) a team leader and her team members, and (b) the same team leader
a. planning c. controlling and her boss.
b. delegating d. supervising 18. Explain how the “glass ceiling effect” may disadvantage newly
9. The process of building and maintaining good relationships with hired Aboriginal university graduates in a large corporation.
others who may help implement a manager’s work agendas is called 19. What is globalization, and what are its implications for working in
______. the new economy?
a. governance c. authority
b. networking d. entrepreneurship Essay Question
10. In Katz’s framework, top managers tend to rely more on their 20. You have just been hired as the new head of an audit team for a
______ skills than do first-line managers. national accounting firm. With four years of experience, you feel techni-
a. human c. decision-making cally well prepared for the assignment. However, this is your first formal
b. conceptual d. technical appointment as a “manager.” Things are complicated at the moment.
The team has 12 members of diverse demographic and cultural back-
11. The research of Mintzberg and others concludes that managers
grounds, as well as work experience. There is an intense workload and
______.
lots of performance pressure. How will this situation challenge you to
a. work at a leisurely pace develop and use essential managerial skills and related competencies
b. have blocks of private time for planning to manage the team successfully to high levels of auditing performance?
20 C HA PTER 1 Management Today
Management Skills & Competencies:
Make Yourself Valuable!
Evaluate Career Situations
What Would You Do?
1. Opportunity with Foreign Employer
One of the plus sides of globalization is new jobs created by foreign
employers setting up operations in local communities. How about you:
Does it make any difference if you receive a job offer from a foreign
employer such as Honda or a North American one such as Ford? Assume
you just had an offer from Honda for a great job in Alliston, Ontario.
Prepare a Job Hunter’s Balance Sheet. On the left list the “pluses” and
on the right the “minuses” of working for a foreign employer.
2. Interviewing for Dream Job
It’s time to take your first interview for a “dream” job. The interviewer
is sitting across the table from you. She smiles, looks you in the eye,
Reflect on the Self-Assessment
Career Readiness “Big 20”
Instructions
Use this scale to rate yourself on the following “Big 20” personal char-
acteristics for management and career success.65
(S) Strong, I am very confident in my abilities in this domain.
(G) Good, but I still have room to grow.
(W) Weak, I really need work on this area.
(U) Unsure, I just don’t know.
Big 20 Personal Characteristics
1. Inner work standards: The ability to personally set and work to high
performance standards.
2. Initiative: The ability to actively tackle problems and take advan-
tage of opportunities.
3. Analytical thinking: The ability to think systematically and identify
cause–effect patterns in data and events.
4. Creative thinking: The ability to generate novel responses to prob-
lems and opportunities.
5. Reflective thinking: The ability to understand yourself and your
actions in the context of society.
6. Social objectivity: The ability to act free of racial, ethnic, gender, and
other prejudices or biases.
7. Social intelligence: The ability to understand another person’s
needs and feelings.
8. Emotional intelligence: The ability to recognize and manage emotions.
9. Cultural intelligence: The ability to respect other cultures and work
well in diverse cultural settings.
and says: “You have a very impressive academic record and we’re
impressed with your extracurricular activities.” But she then says:
“Now tell me, just what can you do for us that will add value to the
organization right from day one?” You’re on the spot. How will you
answer? What can you add to the conversation that clearly shows you
have strong human and conceptual skills, not just technical ones?
3. Supervising Old Friends
When people are promoted into management, they sometimes end up
supervising friends and colleagues they previously worked with. This
could happen to you. When it does, how can you best deal with this
situation right from the start? What will you do to earn the respect of
everyone under your supervision and set the foundations for what will
become a well-regarded and high-performing work team?
10. Interpersonal relations: The ability to work well with others and in
teams.
11. Self-confidence: The ability to be consistently decisive and willing
to take action.
12. Self-objectivity: The ability to evaluate realistically personal
strengths, weaknesses, motives, and skills.
13. Tolerance for uncertainty: The ability to work in ambiguous and
uncertain conditions.
14. Adaptability: The ability to be flexible and adapt to changes.
15. Stress management: The ability to get work done under stressful
conditions.
16. Stamina: The ability to sustain long work hours.
17. Communication: The ability to communicate well orally and in
writing.
18. Impression management: The ability to create and sustain a posi-
tive impression in the eyes of others.
19. Introspection: The ability to learn from experience, awareness,
and self-study.
20. Application: The ability to apply learning and use knowledge to
accomplish things.
Self-Assessment Scoring
Give yourself 1 point for each S, and half a point for each G. Do not give
yourself points for W and U responses. Total your points and enter the
result here [_________].
   
Interpretation
This assessment is a good starting point for considering where and
how you can further develop useful managerial skills and competen-
cies. It offers a self-described profile of your personal management
foundations—things that establish strong career readiness. The higher
Contribute to the Class Exercise
My Best Manager
Preparation
Working alone,
1. Make a list of the behavioural attributes that describe the “best”
manager you have ever had. This could be someone you worked
for in a full-time or part-time job, summer job, volunteer job, stu-
dent organization, or elsewhere. If you have trouble identifying
an actual manager, make a list of behavioural attributes of the
manager you would most like to work for in your next job.
2. Make a list of the behavioural attributes that describe the “worst”
manager you have ever had.
3. Write a short synopsis of things that this bad manager actually did or
said that would qualify for “Believe it or not, it’s really true!” status.
Manage a Critical Incident
Team Leader Faces Test
Situation
It’s happened again for the second time in a week. Charles walked into
your cubicle and started a rant about not getting enough support from
you as his team leader. Before you had a chance to say anything, he
accused you of playing favourites in assigning projects and not giving
him the respect, he deserved for his seniority and expertise. Then he
gave you an angry look, turned around, and stomped off. You let it go
the last time he exploded like this. And after cooling down, he came
by later to apologize and give you a fist-bump of reconciliation. You’ve
since learned, however, that the other team members have been on
the receiving end of his outbursts and are starting to complain to one
Collaborate on the Team Activity
The Amazing Great Job Race
The incredible variety of jobs out there for the well-prepared candidate
is almost unimaginable. But our lives have gotten busy—really compli-
cated! We spend time with work, schoolwork, meetings, friends, family,
video games, listening to music, watching television, surfing the Inter-
net, going to concerts, social engagements, and so on. It seems like our
calendars are always full with activities, leaving less time available to
figure out what we really want from a first “real” job and a career.
Management Skills & Competencies: Make Yourself Valuable! 21
you score the better. There shouldn’t be too many 20s around. Ask
someone you know to assess you on this instrument as well. You may
be surprised at the differences between your score and the one they
come up with.
4. Using your list of attributes for your “best” manager, write a quick
summary of the most important differences that quickly sort out
your best from your worst.
Activity
Form into groups as assigned by your instructor, or work with a nearby
classmate. Share your list of attributes and listen to the lists of oth-
ers. Be sure to ask questions and make comments on items of special
interest.
Work together in the group to create a master list that combines
the unique attributes of the “best” and/or “worst” managers experi-
enced by members. Have a spokesperson share that list with the rest
of the class for further discussion. Share the “Believe it or not!” stories
provided by group members.
another about him. Charles is your top software engineer and has a lot
of technical expertise to offer the team and you. He’s a valuable talent,
but his behaviour has become intolerable. It’s time for action.
Questions
How do you handle Charles and the full team in these circumstances?
Does his behaviour call for direct confrontation between you and him?
If so, how do you handle it? If not, how do you handle it? Is this some-
thing that the team as a whole needs to get involved with? If so, how
do you proceed as team leader? How can you use each of the man-
agement functions to best deal with this situation? How can essential
managerial skills help you succeed in this and similar situations?
You might say or hear: “I haven’t got time for that—I need a job
now … !” It’s easy to overestimate how much you can get done at the last
minute. There may also be lots of uncertainty as to what kind of job you
really want. Thinking about likes and dislikes, talents and areas of deficit,
goals, aspirations, wants, needs, understanding yourself and what makes
you happy—all take time. It also takes time spent in the right ways.
A job that looks really great to you might require a series of
classes that you haven’t taken, an internship that you haven’t done,
software that you don’t know, or a foreign language you don’t speak.
22 C HA PTER 1 Management Today
If you spend time thinking about what you want, searching for what’s
out there, and figuring out now what you’ll need in order to be pre-
pared when you graduate, you just might find yourself running, and
winning, the Amazing Great Job Race.
Instructions
1. Reflect: What classes have you enjoyed the most? What did you
like most about them? How was your thinking challenged in these
courses? What work experiences have been most satisfying for
you? Why?
2. Share: Listen without criticism to how others in the group
answered these reflection questions. Share your answers and
Analyze the Case Study
Case 4.1   Vancity | Keeping Employees Happy and Healthy
Go to Management Cases for Critical Thinking at the end of the book to find this case.
listen to the comments of others. Turn group discussion into
a brainstorming session about the kinds of jobs each member
might like to do and the careers they might pursue.
3. Debate: Push each other to identify baseline requirements for
jobs that might be good fits for them. Ask: What classes would
you need to take to be in a position to compete for these jobs?
What kinds of internships would you need to participate in to
gain experience and access? What tests and certifications might
be necessary? How much time would these preparations take for
you to be ready to compete for your best job with other candi-
dates who might want it also?

d El-Shahed/Getty Images
Management Learning
Past to Present
Great management isn’t new and it isn’t all about
technology. People have created wonderful things for
centuries, and management lessons are part of our history.
In his book The Evolution of Management Thought, Daniel Wren
traces management as far back as 5000 BCE, when the ancient
Sumerians used written records to improve government and
business activities.1 Management was crucial in the construc-
tion of the Egyptian pyramids, the spread of the Roman Empire
across the globe, and the renowned commercial success of
14th-century Venice. By the time of the start of the Industrial
Revolution in the late 1700s, great social changes helped stim-
ulate major manufacturing advances in basic products and
consumer goods. Adam Smith’s revolutionary (at the time) con-
cepts of division of labour and task specialization accelerated
CHAPTER 2
Mohamed El-Shahed/Getty Images
industrial development. By the beginning of the 20th century,
Henry Ford had made mass production a core aspect of the
emerging economy. Since then, both the science and practice
of management have evolved considerably.2
Today’s managers face challenges from what many call
“the new industrial revolution.”3 This is a time full of techno-
logical and social uncertainties and opportunities. Perhaps
more than ever it’s a good time to reach back and remember
the management learning that comes from the past. Many
crucial insights can be taken from the history of management
thought. It’s a mistake to assume that our generation needs to
invent best practices in management out of thin air. Instead, it
is important to understand that there is a lot we can learn from
history that can benefit us as we try to perfect new ideas and
approaches to best match current business realities.
23
24 C HA PTER 2 Management Learning Past to Present

Chapter Quick Start

Ancestry.com is a hugely popular website. It helps people learn more about their roots—and
by extension, themselves. The history of management thought offers similar insights. In order
to manage successfully today, and into the ever-changing future, it is critical to understand
the insights and lessons of the past. Knowing where you’re going requires knowledge of where
you’ve been. That is our focus in this chapter.

CHAPTER OUTLINE LEARNING OBJECTIVES

2.1 Classical Management Approaches 2.1 Describe the principal insights of classical management
thinking.

2.2 Behavioural Management Approaches 2.2 Identify key insights of the behavioural management
approaches.

2.3 Modern Management Foundations 2.3 Explain the core foundations of modern management
theory and practice.

What to Look for Inside

Management Is Real Skills Make You Valuable

2.1 Analysis Make Data Your Friend • Evaluate Career Situations:
When #MeToo Becomes Catch 22 What Would You Do?

2.2 Ethics Know Right from Wrong • Reflect on the Self-Assessment:

Managerial Assumptions
Tracking Technology Monitors Worker Behaviour
• Contribute to the Class Exercise:
2.3 Wisdom Learn from Role Models
Evidence-Based Management Quiz
Former Marketing Executive Finds Fulfillment in the
“Greening” of Canada • Manage a Critical Incident:
Theory X versus Theory Y
2.4 Insight Keep Learning about Yourself
• Collaborate on the Team Activity:
Make Your Learning Style Work for You
Management in Popular Culture
2.5 Choices Think before You Act
• Analyze the Case Study:
Thinking about Office Engagement Zara International | Fashion at the Speed of Light

2.1Classical Management Our study of management begins with a focus on the three
major classical approaches: (1) scientific management, (2)

Approaches administrative principles, and (3) bureaucratic organization.4

Figure 2.1 ties each of these classical approaches to a promi-
nent historical figure—Taylor, Fayol, or Weber. You can see that
LEARNING OBJECTIVE 2.1 the classical approaches share a common assumption: People
consider their opportunities rationally and do whatever is nec-
Describe the principal insights of classical management essary to achieve the greatest personal and monetary gain.5
thinking.

Scientific Management
Learn More About
In 1911, Frederick W. Taylor published The Principles of Scien-
Scientific management • Administrative principles tific Management, where he stated: “The principal object of
• Bureaucratic organization management should be to secure the maximum prosperity
for the employer, coupled with the maximum prosperity for
    Classical Management Approaches 25

Classical
approaches

Assumption: People are rational

Scientific Administrative Bureaucratic

management principles organization
Frederick Taylor Henri Fayol Max Weber

FIGURE 2.1 Major branches in the classical approach to management.

each employee.”6 Taylor, often called the “father of scientific
management,” noticed that workers often did their jobs with
unnecessary motions and without a consistent approach. This
resulted in inefficiency and low performance. He believed that
this problem could be fixed if workers were taught to do their
jobs in the most efficient way and then were helped and guided
by supervisors to always work this way.
Taylor’s goal was to improve workers’ productivity. He used
the concept of “time study” to analyze the motions and tasks
required to do a job, and to develop the most efficient ways
to perform that job. He then linked these job requirements to
both worker training and support from supervisors in the form
of precise direction, work assistance, and monetary incentives.
Taylor’s approach, known as scientific management, includes
four guiding principles.
1. Develop a “science” that includes rules of motion, stan-
dardized work implements, and proper working condi-
tions for every job.
2. Carefully select workers with the right abilities for the job.
3. Carefully train workers to do the job and give them incen-
tives to cooperate with the job “science.”
4. Support workers by carefully planning their tasks and by
smoothing the way as they do their work.
Although Taylor called his approach “scientific” manage-
ment, contemporary scholars have questioned his truthfulness
in reporting and the scientific rigour of his studies.7 But Taylor’s
ideas still influence management thinking.8 Some practical rec-
ommendations from scientific management are listed here:
packages per hour. A GPS is used to plot the shortest delivery
routes; delivery stops are registered in onboard computers that
are studied to identify wasted time. Industrial engineers design
explicit procedures for drivers—with 340 delivery and pickup
rules, such as: avoid left turns in traffic, unbuckle seat belt with
left hand, and walk at a “brisk” pace. Consistent with scientific
management principles, efficiency is a top priority at UPS; sav-
ing a few seconds at each stop adds up to significant increases
in productivity.9
One of the most enduring legacies of scientific manage-
ment grew from Taylor’s interest in motion study, the science
of reducing a job or a task to its most basic physical compo-
nents. Two of his contemporaries, Frank and Lillian Gilbreth,
pioneered the use of motion studies as a management tool.10
In one famous case, the Gilbreths cut down the number of
motions used by bricklayers and tripled their productivity!
Insights from scientific management have led to advances
in job design, work standards, and incentive wage plans—all of
which are techniques organizations use today. The next time
you pass by a Taco Bell, think of the number 164, which is the
average number of seconds from the point of order to taco-in-
hand. Taco Bell measures performance based on both time and
accuracy, which are linked to standardized systems for order
taking, money handling, food preparation, and order delivery.
Workers’ actions are carefully designed in assembly-line style,
where each worker learns the script for his or her station and
then delivers it over and over again. The whole process is sup-
ported by training, and rewards are given to employees for
doing things the Taco Bell way.11

• Make results-based compensation a performance incentive.

• Carefully design jobs with efficient work methods.
• Carefully select workers with the abilities to do these jobs.
• Train workers to perform jobs to the best of their abilities.
• Train supervisors to support workers so they can perform
to the best of their abilities.
A contemporary example of the use of the scientific man-
agement approach is the United Parcel Service (UPS). UPS
workers are guided by carefully calibrated productivity stan-
dards. Sorters at regional hubs are timed according to strict task
requirements and are expected to load vans at a set number of
Administrative Principles
In 1916, after a career in French industry, Henri Fayol published
Administration Industrielle et Générale12 in which he outlines his
views on the management of organizations and workers. Fayol
identifies five “rules” or “duties” of management, which sup-
port the four functions of management—planning, organizing,
leading, and controlling—that we talk about today:
1. Foresight—to complete a plan of action for the future.
2. Organization—to provide and mobilize resources to imple-
ment the plan.
26 C HA PTER 2 Management Learning Past to Present
3. Command—to lead, select, and evaluate workers to get the
best work toward the plan.
4. Coordination—to fit diverse efforts together and to ensure
information is shared and problems solved.
5. Control—to make sure things happen according to plan
and to take necessary corrective action.
Fayol believed that management could be taught. He
wanted to improve the quality of management and defined 14
“principles” to help managers. A number of these principles
still guide managers today. They include the scalar chain prin-
ciple—there should be a clear and unbroken line of communi-
cation from the top to the bottom of the organization; the unity
of command principle—each person should receive orders from
only one boss; and the unity of direction principle—one person
should be in charge of all activities that have the same perfor-
mance objective.
Bureaucratic Organization
Max Weber was a late-19th-century German political econ-
omist who had a major impact on the fields of management
and sociology. His ideas developed after noticing that organi-
zations often performed poorly. Among other things, Weber
noticed that employees often held positions of authority not
because of their capabilities, but because of their “privileged”
social status in German society. At the heart of Weber’s think-
ing was an ideal; an intentionally rational and very efficient
form of organization called a bureaucracy.13 It was founded on
principles of logic, order, and legitimate authority. The defining
characteristics of Weber’s bureaucratic organization are:
• Clear division of labour: Jobs are well defined, and workers
are highly skilled at performing them.
• Clear hierarchy of authority: Authority and responsibil-
ity are well defined for each position, and each position
reports to a higher level.
• Formal rules and procedures: Written guidelines direct
behaviour and decisions in jobs, and written files are kept
for historical record.
• Impersonality: Rules and procedures are impartially and
uniformly applied, with no one receiving preferential
treatment.
• Careers based on merit: Workers are selected and pro-
moted on ability, competency, and performance, and
managers are career employees of the organizations.
The characteristics of Weber’s bureaucracy are also shown
in Figure 2.2.
Weber believed that organizations structured as bureau-
cracies would use resources more efficiently and treat employ-
ees more fairly than other systems. He wrote:14
The purely bureaucratic type of administrative organiza-
tion … is, from a purely technical point of view, capable of
attaining the highest degree of efficiency. … It is superior
to any other form in precision, in stability, in the stringency
The Classic Bureaucracy
Fair
Impersonal
Career managers
Clear division of labour
Promotion based on merit
Formal hierarchy of authority
Written rules and standard procedures
FIGURE 2.2 Characteristics of Weber’s bureaucracy.
of its discipline, and in its reliability. It thus makes possible
a particularly high degree of calculability of results for the
heads of the organization and for those acting in relation
to it.
Today we recognize that bureaucracy works well sometimes,
but not all of the time. In fact, it’s common to hear the terms
bureaucracy and bureaucrat used with negative connotations.
We picture bureaucracies as being bogged down in excessive
paperwork or “red tape,” slow to handle problems, rigid in
the face of shifting customer needs, and high in resistance to
change and employee apathy.15 These are disadvantages for
organizations that have to be flexible and adaptive to today’s
rapidly changing circumstances. A major management chal-
lenge is to know when bureaucratic features work well and
what the best alternatives are when they don’t. Later in the
chapter we’ll call this contingency thinking.
Learning Check
LEAR NING OBJECT IV E 2.1 Describe the principal in­
sights of classical management thinking.
Be Sure You Can • state the underlying assumption of the classical
management approaches • list the principles of Taylor’s scientific
management • identify three of Fayol’s principles for guiding mana-
gerial action • list the key characteristics of bureaucracy and explain
why Weber considered it an ideal form of organization • identify pos-
sible disadvantages of bureaucracy in today’s environment
Behavioural
2.2
Management Approaches
LEARNING OBJECTIVE 2.2
Identify key insights of the behavioural management
approaches.
    Behavioural Management Approaches 27

through and truly reconcile conflicts and differences. For her,

Learn More About
Follett’s organizations as communities • The
Hawthorne studies • Maslow’s theory of human
needs • McGregor’s Theory X and Theory Y • Argyris’s
theory of adult personality
During the 1920s an emphasis on the human side of the work-
place began to influence management thinking. Major branches
in the behavioural—or human resource—approaches to man-
agement are shown in Figure 2.3. These include Follett’s ideas
about organizations as communities, the Hawthorne studies,
Maslow’s theory of human needs, and related ideas of Doug-
las McGregor and Chris Argyris. The behavioural approaches
assume that people enjoy social relationships, respond to
group pressures, and search for personal fulfillment. These his-
torical foundations set the stage for what is now known as the
field of organizational behaviour, the study of individuals and
groups in organizations.
Follett’s Organizations as
Communities
The work of Mary Parker Follett was part of an important transi-
tion from classical thinking to the new discipline of behavioural
management. The book Mary Parker Follett—Prophet of Manage-
ment: A Celebration of Writings from the 1920s offers an important
reminder of the wisdom that can come from an understanding
of history. Although Follett wrote a long time ago, her ideas are
rich with foresight. She taught respect for workers’ experience
and knowledge, warned against the dangers of too much hier-
archy, and called for visionary leadership. Follett was eulogized
upon her death in 1933 as “one of the most important women
America has yet produced in the fields of civics and sociology.”16
Follett thought of organizations as “communities” where
managers and workers should labour in harmony without
one party dominating the other, and with the freedom to talk
groups were a way for individuals to combine their talents
toward a greater good. She believed it was the job of managers
to help workers cooperate with one another and to integrate
their goals and interests.
Follett’s emphasis on groups and her commitment to
human cooperation are highly relevant themes today.17 She
believed that making every employee an owner in a business
would create feelings of collective responsibility. Today, we
address the same issues under such labels as employee owner-
ship, profit sharing, and gain-sharing plans. She believed that
business problems involve a wide variety of factors that must be
considered in relationship to one another. Today, we talk about
“systems” and “contingency thinking.” Follett also believed that
businesses were service organizations and that private profits
should always be considered vis-á-vis the public good. Today,
we pursue the same issues using the labels managerial ethics
and corporate social responsibility. (See Management Is Real 2.1.)
Follett was, in many ways, a woman ahead of her time whose
insights and philosophy bear on organizational practice today.
Recent work on organizations as communities by schol-
ars Leon Prieto and Simone Phipps highlight the insights of
Charles Clinton Spaulding, whom they refer to as the “Father
of African American Management.”18 Noting that the contribu-
tions of African Americans to the history of management had
been overlooked, they studied Spaulding’s experience as head
of the North Carolina Mutual Life Insurance Company. What
they found was an enlightened executive who started as a dish-
washer and worked his way to the top of the largest African
American business of his time.
Spaulding is described as a committed leader who helped
people and communities, always tried to understand the com-
plexities of management and organizations, and was generous
in sharing his insights to help others become successful manag-
ers. He summarized his management approach in two articles
published in 1927 in the Pittsburgh Courier setting out what he
called the “eight necessities” of management.19
1. Cooperation and teamwork
2. Authority and responsibility
3. Division of labour

Organizations as communities

Mary Parker Follett

Hawthorne studies Theory of human needs

Elton Mayo Abraham Maslow

Human resource
approaches
Assumption:
People are social
and self-actualizing
Theory X and Theory Y Personality and organization

Douglas McGregor Chris Argyris

FIGURE 2.3 Foundations in the behavioural or human resource approaches to management.

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