About US

About the Authors 

k STEPHEN P. ROBBINS received his Ph.D. from the University of Arizona. He previously worked for the Shell Oil Company and Reynolds Metals Company and has taught at the University of Nebraska at Omaha, Concordia University in Montreal, the University of Baltimore, Southern Illinois University at Edwardsville, and San Diego State University. He is currently professor emeritus in management at San Diego State. Dr. Robbins’s research interests have focused on conflict, power, and politics in organizations, behavioral decision making, and the development of effective interpersonal skills. His articles on these and other topics have appeared in such journals as Business Horizons, the California Management Review, Business and Economic Perspectives, International Management, Management Review, Canadian Personnel and Industrial Relations, and The Journal of Management Education. Dr. Robbins is the world’s best-selling textbook author in the areas of management and organizational behavior. His books have sold more than 7 million copies and have been translated into 20 languages. His books are currently used at more than 1,500 U.S. colleges and universities, as well as hundreds of schools throughout Canada, Latin America, Australia, New Zealand, Asia, Europe, and the Arab World. Dr. Robbins also participates in masters track competition. Since turning 50 in 1993, he’s won 23 national championships and 14 world titles. He was inducted into the U.S. Masters Track & Field Hall of Fame in 2005. MARY COULTER received her Ph.D. from the University of Arkansas. She held different jobs including high school teacher, legal assistant, and city government program planner before completing her graduate work. She has taught at Drury University, the University of Arkansas, Trinity University, and Missouri State University. She is currently professor emeritus of management at Missouri State University. In addition to Management, Dr. Coulter has published other books with Pearson including Fundamentals of Management (with Stephen P. Robbins), Strategic Management in Action, and Entrepreneurship in Action. When she’s not busy writing, Dr. Coulter enjoys puttering around in her flower gardens, trying new recipes, reading all different types of books, and enjoying many different activities with husband Ron, daughters and sons-in-law Sarah and James, and Katie and Matt, and most especially with her two grandkids, Brooklynn and Blake, who are the delights of her life!

The book you have before you is one of the world’s most popular introductory management textbooks. It’s used by several hundred U.S. colleges and universities; it’s translated into Spanish, French, Russian, Dutch, Bahasa, Korean, and Chinese; and there are adapted editions for Australia, Canada, India, and the Arab World. For a textbook first published in 1984—in a crowded market where there are currently several dozen choices, why has Robbins/Coulter Management been so popular and enduring? We believe there are three characteristics that set us apart: contemporary topic coverage, readability, and relevance. Contemporary Topic Coverage We have always prided ourselves on bringing the latest management issues and research to this book. In preparing each edition, we carefully comb the academic journals and business periodicals to identify topics that students need to be current on. For instance, prior editions of this book were the first to discuss self-managed teams, emotional intelligence, open-book management, sustainability, social entrepreneurship, stretch goals, the contingent workforce, self-managed careers, wearable technology, big data, and design thinking. This current edition continues the tradition by including a new section on disruptive innovation. No topic appears to be more current or important to students today than dealing with major structural changes taking place in industries as varied as automobiles, hotels, banking, TV networks, or book publishing. In fact, there are few industries that aren’t being threatened by disruptive innovation. In Chapter 7, we define disruptive innovation; explain why it’s important; describe who is vulnerable; and discuss implications for entrepreneurs, corporate managers, and your career planning. Key Changes to the 14th Edition • Chapter 7 on managing change has been expanded to include a discussion of disruptive innovation as an important driver of change. • The Part 2 module on creating and leading entrepreneurial ventures has become a separate chapter (Chapter 10). We’ve expanded our discussion, added end-of-chapter applications, and acknowledged the importance of entrepreneurship by giving it its own chapter. • The two chapters on organizational design have been merged into one chapter (Chapter 11) in response to comments by users and reviewers. But we’ve retained the key concepts that students need to know. • The addition of “Workplace Confidential” pages throughout the book which address common frustrations and challenges that employees face in the workplace. • Current and timely topics—including the Internet of things, real-time feedback, and choosing appropriate communication media, among others—have been added. • Dozens of current examples illustrating management practices and challenges in start-up and established organizations, small and large organizations, and manufacturing, service and technology organizations have been added. Readability Every author claims his or her books are highly readable. The reality is that few actually are. From the first edition of this book, we were determined to make the field of management interesting and engaging for the reader. How did we do it? First, we committed to a Preface xxix A01_ROBB7604_14_SE_FM.indd 29 03/10/16 6:38 PM xxx Preface conversational writing style. We wanted the book to read like normal people talk. Second, we relied on an extensive use of examples. As your senior author learned early in his teaching career, students don’t remember theories but they do remember stories. So you’ll find a wealth of current examples in this book. A well-written book should be able to be used successfully at all levels of higher education, from community colleges to graduate programs. And over its 30+ years of life, this book has done just that. You’ll find this book is used in community colleges, at for-profit colleges, by undergraduate students at both regional and land-grant universities, and in numerous graduate programs. Relevance Students are unlikely to be motivated if they think a course and its textbooks aren’t relevant to their career goals. We’ve responded to this challenge in a number of ways. Our latest inclusion is an important new feature—the Workplace Confidential pages— that’s designed to make this book more meaningful to non-management majors. We also want to highlight four additional features that have helped build this book’s reputation for practicality. Providing value to non-management students. New to this edition are in-chapter pages entitled Workplace Confidential. This unique feature marks a distinct break from what typically has been included in the traditional introductory management text. Your authors have long heard a common complaint about the introductory management course from students in majors such as accounting, finance, and marketing. As summed up by one accounting student: “Why do I need to take a management course? I have no interest in pursuing a career in management!” Even though that accounting student might some day lead an audit team or manage an office of a major CPA firm, we understand those non-management majors who question the relevance of this course to their career goals. We’ve listened and responded. We’ve made the contents of this 14th edition relevant to any student who plans to work in an organization. Regardless of whether an organization employs three people or 300,000, there are common challenges that every employee encounters. We’ve researched those challenges and identified the nearly dozen-and-a-half most frequent. Then we looked at providing students with guidance for dealing with these challenges. The result is the Workplace Confidential features that you’ll find throughout this book. For instance, you’ll find suggestions for dealing with organizational politics, job stress, coping with an uncommunicative or abusive boss, and responding to an unfair performance review. Insights from real managers. One feature that has differentiated Robbins/Coulter for more than 15 years is our “real” managers. Student feedback tells us that they appreciate learning from real managers in their everyday jobs. In Let’s Get Real boxes, actual managers respond to problem scenarios. In Leader Making a Difference boxes, you’ll meet a variety of global executives whose knowledge and skills significantly influenced organizational outcomes. Focus on skills. Today’s students need both knowledge (knowing) and skills (doing). Students want to leave class knowing what management is all about but also with the skills necessary to help them succeed in today’s workplaces. In response, you’ll find several features in this book that are designed to build skill expertise. It’s Your Career chapter openers cover skills ranging from managing time and being self aware to being a pro at giving feedback and being change ready. These chapter openers include information about the skill and are reinforced with a MyManagementLab component that tests students’ comprehension of the skill. Also, at the end of each chapter, you’ll find more skill exercises, where we provide a thorough discussion of additional skills and give students opportunities to practice these skills. Looking ahead. Students are going to spend most of their future work life in a setting that’s likely to look very different from today. To help students prepare for that future, we have included Future Vision boxes throughout the book that look at how A01_ROBB7604_14_SE_FM.indd 30 03/10/16 6:38 PM Preface xxxi management and organizations might change over the next 15 to 20 years. Although no one has a perfectly accurate view into the future, certain trends in place today offer insights into what tomorrow’s work world might look like. We draw from recent research and forecasts to consider this future. MyManagementLab Suggested Activities Making assessment activities available online for students to complete before coming to class will allow you, the instructor, more discussion time during the class to review areas that students are having difficulty in comprehending. The activities below are available in MyManagementLab and are integrated into the textbook. Watch It Recommends a video clip that can be assigned to students for outside classroom viewing or that can be watched in the classroom. The video corresponds to the chapter material and is accompanied by multiple-choice questions that reinforce students’ comprehension of the chapter content. Try It Recommends a mini simulation that can be assigned to students as an outside classroom activity or be done in the classroom. As the students watch the simulation they will be asked to make choices based on the scenario presented in the simulation. At the end of the simulation the student will receive immediate feedback based on the answers they gave. These simulations reinforce the concepts of the chapter and the students’ comprehension of those concepts. Talk About It These are discussion-type questions that can be assigned as an activity within the classroom. Write It Students can be assigned these broad-based, critical-thinking discussion questions that will challenge them to assimilate information that they’ve read in the chapter. Personal Inventory Assessments (PIA) Students learn better when they can connect what they are learning to their personal experience. PIA (Personal Inventory Assessments) is a collection of online exercises designed to promote self-reflection and engagement in students, enhancing their ability to connect with concepts taught in principles of management, organizational behavior, and human resource management classes. Assessments are assignable by instructors who can then track students’ completions. Student results include a written explanation along with a graphic display that shows how their results compare to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion. Assisted Graded Writing Questions These are short essay questions that the students can complete as an assignment and submit to you, the professor, for grading.

What This Course Is About and Why It’s Important 

This course and this book are about management and managers. Managers are one thing that all organizations—no matter the size, kind, or location—need. And there’s no doubt that the world managers face has changed, is changing, and will continue to change. The dynamic nature of today’s organizations means both rewards and challenges for the individuals who will be managing those organizations. Management is a dynamic subject, and a textbook on it should reflect those changes to help prepare you to manage under the current conditions. We’ve written this 14th edition of Management to provide you with the best possible understanding of what it means to be a manager confronting change and to best prepare you for that reality. But not every student aspires to a career in management. And even if you do, you may be five or ten years away from reaching a managerial position. So you might rightly feel that taking a course in management now may be getting ahead of the game. We hear you. In response to these concerns, we’ve added new material to this book that is important and relevant to everyone working in an organization—manager and non-manager alike. Our “Workplace Confidential” pages identify, analyze, and offer suggestions for dealing with the major challenges that surveys indicate frustrate employees the most. You should find these pages valuable for helping you survive and thrive in your workplace. Surprisingly, this topic has rarely been addressed in business programs. Inclusion in an introductory management course appeared to us to be a logical place to introduce these challenges and to provide guidance in handling them. Instructor Resources At the Pearson’s Higher Ed catalog, https://overvieweverything-do-you-need.blogspot.com/, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated 

Every author relies on the comments of reviewers, and ours have been very helpful. We want to thank the following people for their insightful comments and suggestions: Acknowledgments Michael Alleruzzo, St. Joseph University, PA Matthias Bollmus, Carroll University, WI Brione Burrows, Central Georgia Tech, GA M. Suzanne Clinton, University of Central Oklahoma, OK Dana J. Frederick, Missouri State University, MO Julia M. Fullick, Quinnipiac University, CT Karl Giulian, Atlantic Cape Community College, NJ Dan Morrell, Middle Tennessee State University, TN L. Renee Rogers, Forsyth Technical Community College, NC Our team at Pearson has been amazing to work with, as always! This team of editors, production experts, technology gurus, designers, marketing specialists, sales representatives, and warehouse employees works hard to turn our files into a bound textbook and a digital textbook and sees that it gets to faculty and students. We couldn’t do this without all of you! Our sincere thanks to the people who made this book “ready to go,” including Stephanie Wall, Kris Ellis-Levy, Claudia Fernandes, Hannah Lamarre, and Nancy Moudry, as well as Kathy Smith and the team at Cenveo. All of you are consummate professionals who truly are committed to publishing the best textbooks! We’re glad to have you on our team! Finally, Steve and Mary would like to thank Joe Martocchio at the University of Illinois and Lori Long at Baldwin Wallace University for helping with this revision. They were instrumental in updating the research, examples, boxes, skill exercises, and cases. This revision could never have been done without your assistance. We thank you so much!

03/10/16 6:38 PM It’s Your Career Part 1 Introduction to Management Chapter 1 Managers and You in the Workplace The ABC’s of Managing Your Time Are you BUSY? Do you always seem to have a lot to do and never seem to get it done, or done on time, or are things done at the last minute under a lot of pressure and stress? If you’re like most people, the answer to these questions is YES! Well, maybe in a management textbook we need to do something about that by focusing on one aspect of management that can be tremendously useful to you . . . TIME MANAGEMENT! Time is a unique resource and one of your most valuable resources. Time is also a limited resource. First, if it’s wasted, it can never be replaced. People talk about saving time, but time can never actually be saved. Second, unlike resources such as money or talent, which are distributed unequally in the world, time is an equal-opportunity resource. Each one of us gets exactly the same amount of time: 24 hours per day or 168 hours each week. But as you have undoubtedly observed, some people are a lot more efficient in using their allotment. It is not uncommon to hear others say that they need additional hours to get everything done, but that is simply wishful thinking. Commit to improving your ability to manage those 168 hours so you can be more efficient and effective—in your career and in your personal life! Here are some suggestions to help you better use your time: 1. Make and keep a list of all your current, upcoming, and routine goals. Know what needs to be done daily, weekly, and monthly. 2. Rank your goals according to importance. Not all goals are of equal importance. Given the limitations on your time, you want to make sure you give highest priority to the most important goals. 3. List the activities/tasks necessary to achieve your goals. What specific actions do you need to take to achieve your goals? 4. Divide these activities/tasks into categories using an A, B, and C classification. The A’s are important and urgent. B’s are either important or urgent, but not both. C’s are routine—not important nor urgent, but still need to be done. A key to success in management and in your career is having good time management skills. Source: valentint/Fotolia M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 2 30/09/16 7:47 pm 3 Learning Objectives 5. Schedule your activities/tasks according to the priorities you’ve set. Prepare a daily plan. Every morning, or at the end of the previous workday, make a list of the five or so most important things you want to do for the day. Then set priorities for the activities listed on the basis of importance and urgency. 6. Plan your to-do list each day so that it includes a mixture of A, B, and C activities/tasks. And it’s best to spread the three types of tasks throughout your day so you’re not lumping together all your demanding tasks. Also, be realistic about what you can achieve in a given time period. 7. Recognize that technology makes it too easy to stay connected. Just think for a moment how many phone calls, e-mails, texts, postings on social media, and unscheduled visitors you receive on a typical day. Some are essential to the tasks at hand, while others are distractions that do not require immediate attention. Prioritize the importance of this information. 8. Realize that priorities may change as your day or week proceeds. New information may change a task’s importance or urgency. As you get new information, reassess your list of priorities and respond accordingly. 9. Remember that your goal is to manage getting your work done as efficiently and effectively as you can. It’s not to become an expert at creating to-do lists. Find what works best for you and use it! Like many students, you’ve probably had a job (or two) at some time or another while working on your degree. And your work experiences, regardless of where you’ve worked, are likely to have been inuenced by the skills and abilities of your manager. What are today’s successful managers like and what skills do they need in dealing with the problems and challenges of managing in the twenty-rst century? This text is about the important work that managers do. The reality facing today’s managers—and that might include you in the near future—is that the world is changing. In workplaces of MyManagementLab® Improve Your Grade! When you see this icon, visit www.mymanagementlab.com for activities that are applied, personalized, and offer immediate feedback. ● SKILL OUTCOMES 1.1 Tell who managers are and where they work. ● Know how to manage your time. 1.2 Explain why managers are important to organizations. 1.3 Describe the functions, roles, and skills of managers. ● Develop your skill at being politically aware. 1.4 Describe the factors that are reshaping and redefining the manager’s job. 1.5 Explain the value of studying management. M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 3 30/09/16 7:47 pm 4 Part 1 Introduction to Management all types—o‚ces, stores, labs, restaurants, factories, and the like—managers deal with changing expectations and new ways of managing employees and organizing work. In this chapter, we introduce you to managers and management by looking at (1) who managers are and where they work, (2) why managers are important, and (3) what managers do. Finally, we wrap up the chapter by (4) looking at the factors reshaping and redening the manager’s job and (5) discussing why it’s important to study management.

WHO are managers and where do they work? Managers may not be who or what you might expect! Managers can range in age from 18 to 80+. They run large corporations, medium-sized businesses, and entrepreneurial start-ups. They’re also found in government departments, hospitals, not-for-prot agencies, museums, schools, and even nontraditional organizations such as political campaigns and music tours. Managers can also be found doing managerial work in every country on the globe. In addition, some managers are top-level managers while others are rst-line managers. And today, managers are just as likely to be women as they are men; however, the number of women in top-level manager positions remains low—only 24 (4%) women were CEOs of Fortune 500 companies in 2014.1 Similarly, only 20 (4%) were minorities. Even in government leadership roles, women are far outnumbered by men in the U.S. Senate and House of Representatives, representing approximately 20 percent of these total elected o‚cials.2 But no matter where managers are found or what gender or race they are, managers have exciting and challenging jobs! Who Is a Manager? It used to be fairly simple to dene who managers were: They were the organizational members who told others what to do and how to do it. It was easy to dižerentiate managers from nonmanagerial employees. Now, it isn’t quite that simple. In many organizations, the changing nature of work has blurred the distinction between managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include managerial activities.3 For example, the gaming company Valve does not award job titles, and there is little formal supervision. Virtually any employee is free to start a project as long as the employee obtains funding and assembles a project team.4 Or consider an organization like Morning Star Company, the world’s largest tomato processor, where no employees are called managers—just 400 full-time employees who do what needs to be done and who together “manage” issues such as job responsibilities, compensation decisions, and budget decisions.5 Sounds crazy, doesn’t it? But it works—for this organization. (See Case Application 2 at the end of the chapter to see how another business—Zappos—has gone bossless!) So, how do we dene who managers are? A manager is someone who coordinates and oversees the work of other people so organizational goals can be accomplished. A manager’s job is not about personal achievement—it’s about helping others do their work. That may mean coordinating the work of a departmental group, or it might mean supervising a single person. It could involve coordinating the work activities of a team with people from dižerent departments or even people outside the organization such as temporary employees or individuals who work for the organization’s suppliers. Keep in mind that managers may also have work duties not related to coordinating and overseeing others’ work. For example, an insurance claims supervisor might process claims in addition to coordinating the work activities of other claims clerks. How can managers be classied in organizations? In traditionally structured organizations (often pictured as a pyramid because more employees are at lower 

organizational levels than at upper organizational levels), managers can be classi- ed as rst-line, middle, or top. (See Exhibit 1-1.) At the lowest level of management, first-line (or frontline) managers manage the work of nonmanagerial employees who typically are involved with producing the organization’s products or servicing the organization’s customers. These managers often have titles such as supervisors or even shift managers, district managers, department managers, or oce managers. Middle managers manage the work of rst-line managers and can be found between the lowest and top levels of the organization. They may have titles such as regional manager, project leader, store manager, or division manager. Middle managers are mainly responsible for turning company strategy into action. At the upper levels of the organization are the top managers, who are responsible for making organization-wide decisions and establishing the plans and goals that ažect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating ocer, or chief executive ocer. Not all organizations are structured to get work done using a traditional pyramidal form, however. Some organizations, for example, are more loosely congured, with work done by ever-changing teams of employees who move from one project to another as work demands arise. For instance, at General Cable Corporation’s facility in Moose Jaw, Saskatchewan, Canada, managerial responsibilities are shared by managers and team members. Most of the employees at Moose Jaw are cross-trained and multiskilled. Within a single shift, an employee can be a team leader, equipment operator, maintenance technician, quality inspector, or improvement planner.6 Although it’s not as easy to tell who the managers are in these organizations, we do know that someone must fulll that role—that is, someone must coordinate and oversee the work of others, even if that “someone” changes as work tasks or projects change or that “someone” doesn’t necessarily have the title of manager. Where Do Managers Work? It’s obvious that managers work in organizations. But what is an organization? It’s a deliberate arrangement of people to accomplish some specic purpose. Your college or university is an organization; so are fraternities and sororities, government departments, churches, Google, your neighborhood grocery store, the United Way, the St. Louis Cardinals baseball team, and the Mayo Clinic. All are considered organizations and have three common characteristics. (See Exhibit 1-2.)

The Universality of Management Just how universal is the need for management in organizations? We can say with absolute certainty that management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they’re located. This is known as the universality of management. sustainability A company’s ability to achieve its business goals and increase longterm shareholder value by integrating economic, environmental, and social opportunities into its business strategies LO1.5 universality of management The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in organizations no matter where located M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 17 30/09/16 7:48 pm 18 Part 1 Introduction to Management (See Exhibit 1-9.) In all these organizations, managers must plan, organize, lead, and control. However, that’s not to say that management is done the same way. What a supervisor in an applications testing group at Twitter does versus what the CEO of Twitter does is a matter of degree and emphasis, not function. Because both are managers, both will plan, organize, lead, and control. How much and how they do so will dižer, however. Management is universally needed in all organizations, so we want to nd ways to improve the way organizations are managed. Why? Because we interact with organizations every single day. Organizations that are well managed—and we’ll share many examples of these throughout the text—develop a loyal customer base, grow, and prosper, even during challenging times. Those that are poorly managed nd themselves losing customers and revenues. By studying management, you’ll be able to recognize poor management and work to get it corrected. In addition, you’ll be able to recognize and support good management, whether it’s in an organization with which you’re simply interacting or whether it’s in an organization in which you’re employed. All Sizes of Organizations Small Large All Types of Organizations Pro t Not-for-Pro t All Organization Levels Bottom Top All Organizational Areas Manufacturing—Marketing Human Resources—Accounting Information Systems—etc. Management Is Needed in... Exhibit 1-9 Universal Need for Management If your professor has assigned this, go to www.mymanagementlab.com to complete Simulation: Managing Your Career and get a feel for your career goals. The Reality of Work Another reason for studying management is the reality that for most of you, once you graduate from college and begin your career, you will either manage or be managed. For those who plan to be managers, an understanding of management forms the foundation upon which to build your management knowledge and skills. For those of you who don’t see yourself managing, you’re still likely to have to work with managers. Also, assuming that you’ll have to work for a living and recognizing that you’re very likely to work in an organization, you’ll probably have some managerial responsibilities even if you’re not a manager. Our experience tells us that you can gain a great deal of insight into the way your boss (and fellow employees) behave and how organizations function by studying management. Our point is that you don’t have to aspire to be a manager to gain something valuable from a course in management. Rewards and Challenges of Being a Manager We can’t leave our discussion here without looking at the rewards and challenges of being a manager. (See Exhibit 1-10.) What does it mean to be a manager in today’s workplace? First, there are many challenges. It can be a tough and often thankless job. In addition, a portion of a manager’s job (especially at lower organizational levels) may entail duties that are often more clerical (compiling and ling reports, dealing with bureaucratic procedures, or doing paperwork) than managerial.62 Managers also spend significant amounts of time in meetings and dealing with interruptions, which can be time Try It 2! M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 18 30/09/16 7:48 pm Chapter 1 Managers and You in the Workplace 19 consuming and sometimes unproductive.63 Managers often have to deal with a variety of personalities and have to make do with limited resources. It can be a challenge to motivate workers in the face of uncertainty and chaos. And managers may nd it di‚cult to successfully blend the knowledge, skills, ambitions, and experiences of a diverse work group. Finally, as a manager, you’re not in full control of your destiny. Your success typically is dependent on others’ work performance. Despite these challenges, being a manager can be rewarding. You’re responsible for creating a work environment in which organizational members can do their work to the best of their ability and thus help the organization achieve its goals. You help others nd meaning and fulllment in their work. You get to support, coach, and nurture others and help them make good decisions. In addition, as a manager, you often have the opportunity to think creatively and use your imagination. You’ll get to meet and work with a variety of people—both inside and outside the organization. Other rewards may include receiving recognition and status in your organization and in the community, playing a role in inuencing organizational outcomes, and receiving attractive compensation in the form of salaries, bonuses, and stock options. Finally, as we said earlier in the chapter, organizations need good managers. It’s through the combined ežorts of motivated and passionate people working together that organizations accomplish their goals. As a manager, you can be assured that your ežorts, skills, and abilities are needed. Gaining Insights into Life at Work A good number of students regularly remind your authors that they are not planning a career in management. These students’ career goals are to be accountants or nancial analysts or marketing researchers or computer programmers. They ask us: Why do I need to take a management course? Our answer is: Because understanding management concepts and how managers think will help you get better results at work and enhance your career. And who knows, you may become a manager someday. Oftentimes, successful employees are promoted to managerial roles. For example, you may begin your career as an auditor with a major accounting rm and nd, a few years later, you’re overseeing an audit team or you’re a partner thrust into managing a regional o‚ce. For instance, throughout this book you’ll encounter pages that we call “Workplace Condential.” This feature will introduce you to challenges you’re likely to face at work—like organizational politics, an uncommunicative boss, or an unfair performance review—and ožer you specic suggestions on how to deal with these challenges. If you expect to work with others—whether it’s in a Fortune 100 corporation or in a three-person start-up—studying Management can pay demonstrable dividends. Exhibit 1-10 Rewards and Challenges of Being a Manager Rewards Challenges • Create a work environment in which organizational members can work to the best of their ability • Have opportunities to think creatively and use imagination • Help others find meaning and fulfillment in work • Support, coach, and nurture others • Work with a variety of people • Receive recognition and status in organization and community • Play a role in influencing organizational outcomes • Receive appropriate compensation in the form of salaries, bonuses, and stock options • Good managers are needed by organizations • Do hard work • May have duties that are more clerical than managerial • Have to deal with a variety of personalities • Often have to make do with limited resources • Motivate workers in chaotic and uncertain situations • Blend knowledge, skills, ambitions, and experiences of a diverse work group • Success depends on others’ work performance M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 19 30/09/16 7:48 pm 20 Part 1 Introduction to Management • Gain control of organizational resources. The control of organizational resources that are scarce and important is a source of influence. Knowledge and expertise are particularly effective resources to control. These resources make you more valuable to the organization and, therefore, more likely to gain security, advancement, and a receptive audience for your ideas. • Make yourself appear indispensable. You don’t have to be indispensable as long as key people in your organization believe that you are. If the organization’s prime decision makers believe there is no ready substitute for what you bring to the organization, your job is likely safe and you’re likely to be treated well. • Be visible. If you have a job that brings your accomplishments to the attention of others, that’s great. However, if not—without creating the image of a braggart—you’ll want to let others know what you’re doing by giving progress reports to your boss and others, having satisfied customers relay their appreciation to higher-ups, being seen at social functions, being active in your professional associations, and developing powerful allies who can speak positively about your accomplishments. • Develop powerful allies. It is often beneficial to have friends in high places. Network by cultivating contacts with potentially influential people above you, at your own level, and in the lower ranks. These allies often can provide you with information that’s otherwise not readily available and provide you with support if and when you need it. Having a mentor in the organization who is well respected is often a valuable asset. • Avoid “tainted” members. In almost every organization, there are fringe members whose status is questionable. Their performance and/or loyalty are suspect. Or they have strange personalities. Keep your distance from such individuals. Given the reality that effectiveness has a large subjective component, your own effectiveness might be called into question if you’re perceived as being too closely associated with tainted members. • Support your boss. Your immediate future is in the hands of your current boss. Because that person evaluates your performance, you’ll typically want to do whatever is necessary to have your boss on your side. You should make every effort to help your boss succeed, make her look good, support her if she is under siege, and spend the time to find out the criteria she will use to assess your effectiveness. Don’t undermine your boss. And don’t speak negatively of her to others. Based on D. Krackhardt, “Assessing the Political Landscape: Structure, Cognition, and Power in Organizations,” Administrative Science Quarterly, June 1990, pp. 342–369; G. R. Ferris, S. L. Davidson, and P.L. Perrewé, Political Skill at Work: Impact on Work Effectiveness (Mountain View, CA: DaviesBlack Publishing, 2005); and J. Bolander, “

how many managers felt. That sentiment is out of date. At Banana Republic, the customer experience manager position is responsible for ensuring that customers enjoy a high-quality in-store experience. This manager is also responsible for sta‚ng and training as well as supporting the implementation of product placement, marketing, and promotional strategies.39 We’re discovering, however, that employee attitudes and behaviors play a big role in customer satisfaction and a return on investment. The J.D. Power 2015 North American Airline Satisfaction Study supports this idea. According to J.D. Power’s global travel and hospitality practice leader, Rich Garelick, building customer satisfaction creates “better customer advocates for the airline.”40 Successful airlines such as Alaska Airlines and Jet Blue Airways treat passengers well by putting forward friendly announcements to inform them on the ground or in the air about ight status and ožering amenities such as in-ight entertainment. Today, the majority of employees in developed countries work in service jobs. For instance, almost 80 percent of the U.S. labor force is employed in service industries.41 In Australia, 75 percent work in service industries, and in Canada, 76 percent do. In the United Kingdom, Germany, and Japan, the percentages are 83, 74, and 71, respectively. Even in developing countries such as Colombia, Dominican Republic, Vietnam, and Bangladesh, we nd 62 percent, 65 percent, 31 percent, and 40 percent of the labor force employed in service jobs.42 Examples of service jobs include technical support representatives, food servers or fast-food counter workers, sales clerks, custodians and housekeepers, teachers, nurses, computer repair technicians, front-desk clerks, consultants, purchasing agents, credit representatives, nancial planners, and Impact of Change Changing Technology (Digitization) Changing Security Threats Increased Emphasis on Organizational and Managerial Ethics Increased Competitiveness Customer service Innovation Globalization Efciency/productivity Redened values Rebuilding trust Increased accountability Sustainability Risk management Uncertainty over future energy sources/prices Restructured workplace Discrimination concerns Globalization concerns Employee assistance Uncertainty over economic climate Shifting organizational boundaries Virtual workplaces More mobile workforce Flexible work arrangements Empowered employees Work life–personal life balance Social media challenges Change Exhibit 1-8 Changes Facing Managers With the growing popularity of tourism in the Dominican Republic, a large percentage of the labor force works in service jobs for resorts, attractions, and tourist-related activities such as the aerobics instructor shown here leading a class on the beach for tourists. To succeed in the service industry, managers must create a customer-responsive organization. Source: Ellen McKnight/Alamy M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 14 30/09/16 7:48 pm Chapter 1 Managers and You in the Workplace 15 bank tellers. The odds are pretty good that when you graduate, you’ll go to work for a company that’s in a service industry, not in manufacturing or agriculture. Managers are recognizing that delivering consistent, high-quality customer service is essential for survival and success in today’s competitive environment. Good customer care pays ož. A recent study found that nearly all customers (92%) whose issue was resolved during rst contact with customer service would likely continue using the company.43 That number drops to about half (51%) for customers whose issue was not resolved during rst contact. Employees are an important part of that equation.44 The implication is clear: managers must create a customer-responsive organization where employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer.45 We’ll look at customer service management in other chapters. Focus on Technology Managers increasingly face challenges in their work because technology has been changing how things get done. Cloud computing, social media, and robotics are examples of technology. Getting employees on board presents a challenge to many managers. Managers must work with employees to understand why new technology is an improvement over present ways of conducting business. According to Didier Bonnet, coauthor of Leading Challenge, “The job of a manager is to help people cross the bridge—to get them comfortable with the technology, to get them using it, and to help them understand how it makes their lives better.”46 It is a myth that social skills have become less important because there is more technology in the workplace. Take robotic technology. Software programming can systemize human decision making and physical tasks, which can be carried out by machinery. However, technological advances have fallen short of replicating human interactions and technology falls short of substituting human judgment. Particularly in team settings, workers rely on each other’s expertise, and they are able to adapt to changing circumstances than is made possible by software.47 As a result, managers are continually challenged to oversee team building and problem solving. Management expert Henry Mintzberg, however, warns that “wonderful as they are in enhancing communication, [technological devices] can have a negative ežect on collaboration unless they are carefully managed. An electronic device puts us in touch with a keyboard, that’s all.”48 Therein lies a signicant challenge for managers. Social media technology adds further challenges to the mix. Focus on Social Media You probably can’t imagine a time when employees did their work without smart devices, e-mail, or Internet access. Yet, some 25 years ago, as these tools were becoming more common in workplaces, managers struggled with the challenges of providing guidelines for using the Internet and e-mail in their organizations. Today, the new frontier is social media, forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content. And employees don’t just use these on their personal time, but also for work purposes. That’s why managers need to understand and manage the power and peril of social media. For instance, at grocery chain SuperValu, managers realized that keeping 135,000- plus employees connected and engaged was imperative to continued success.49 They decided to adopt an internal social media tool to foster cooperation and collaboration among the 10 distinct store brands operating in 44 states. And they’re not alone. More and more businesses are turning to social media as a way to connect with customers. Increasingly, many companies encourage employees to use social media to become employee activists. For this purpose, employee activists draw visibility to their workplace, defend their employers from criticism, and serve as advocates, both online and ož.50 social media Forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content If your professor has assigned this, go to www.mymanagementlab.com to watch a video titled Zane’s Cycles: The Management Environment and to respond to questions. Watch It 1! M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 15 30/09/16 7:48 pm 16 Part 1 Introduction to Management But the potential peril is in how it’s used. CEO of Berkshire Hathaway, Warren Buffet, has said that, “It takes 20 years to build a reputation and ve minutes to ruin it.”51 Internally, social media also becomes problematic when it becomes a way for boastful employees to brag about their accomplishments, for managers to publish one-way messages to employees, or for employees to argue or gripe about something or someone they don’t like at work—then it has lost its usefulness. To avoid this, managers need to remember that social media is a tool that needs to be managed to be benecial. At SuperValu, about 9,000 store managers and assistant managers use the social media system. Although sources say it’s too early to draw any conclusions, it appears that managers who actively make use of the system are having better store sales revenues than those who don’t. In the remainder of the book, we’ll look at how social media is impacting how managers manage, especially in the areas of human resource management, communication, teams, and strategy. For example, a particular question is whether human resource managers should use social media to screen potential employees. Ursula Burns is the first African American woman to lead a company the size of Xerox.52 Appointed to the CEO position in 2009, Burns is known for her courage to “tell the truth in ugly times.” Having grown up in the projects on the Lower East Side of New York, Burns understands what it takes to get through those uncertainties. With her aptitude for math, Burns went on to earn a mechanical engineering degree from Polytechnic Institute of New York. After a summer engineering internship at Xerox, she was hooked. At Xerox, Burns was mentored by individuals who saw her potential. Throughout her more than 30-year career at Xerox, Burns had a reputation for being bold. As a mechanical engineer, she got noticed because she wasn’t afraid to speak up bluntly in a culture that’s known more for being polite, courteous, and discreet than for being outspoken. Although Burns is still radically honest and direct, she has become more of a listener, calling herself a “listener-in-chief.” What can you learn from this leader making a difference? LEADER making a DIFFERENCE Source: Jemal Countess/Getty Images Entertainment/Gettyimages.com If your professor has assigned this, go to www.mymanagementlab.com to watch a video titled CH2M Hill: Emotions and Moods and to respond to questions. Focus on Innovation Success in business today demands innovation. Innovation means exploring new territory, taking risks, and doing things dižerently. And innovation isn’t just for high-tech or other technologically sophisticated organizations. Innovative ežorts can be found in all types of organizations. For instance, the manager of the Best Buy store in Manchester, Connecticut, clearly understood the importance of being innovative, a task made particularly challenging because the average Best Buy store is often stažed by young adults in their rst or second jobs who aren’t always committed long term to a retail career. Yet, the increasingly sophisticated products carried by the store required a high level of employee training. The store manager tackled this challenge by getting employees to suggest new ideas. One idea—a “team close,” in which employees scheduled to work at the store’s closing time closed the store together and walked out together as a team—had a remarkable impact on employee attitudes and commitment.53 As you’ll see throughout the book, innovation is critical throughout all levels and parts of an organization. It’s so critical to today’s organizations and managers that we also address this topic in other chapters. Focus on Sustainability Microsoft Corporation generated $93.6 billion in software sales and $12.1 billion in prots, and it had a workforce of 118,000 in 2015. We all know Microsoft for its development and sales of software such as Windows, Skype, and Xbox Live. And Microsoft is probably the last company that you’d think about in a section describing sustainability. However, Microsoft invests in a variety of sustainability projects. Management funds these projects through taxes levied on its business units’ energy consumption that contributes to environmentally unfriendly carbon emissions. The responsibility for savings falls on division managers. Microsoft’s ežorts have paid ož. In a recent three-year period, the company has reduced its emissions by 7.5 metric tons of carbon dioxide.54 According to the U.S. Environmental Watch It 2! M01_ROBB7604_14_SE_CH01_pp002-pp029.indd 16 30/09/16 7:48 pm Chapter 1 Managers and You in the Workplace 17 Protection Agency, this level of emissions is the equivalent of removing more than 1.5 million cars from the road for a year.”55 This corporate action a‚rms that sustainability and green management have become mainstream issues for managers. What’s emerging in the twenty-rst century is the concept of managing in a sustainable way, which has had the ežect of widening corporate responsibility not only to managing in an e‚cient and ežective way, but also to responding strategically to a wide range of environmental and societal challenges.56 Although “sustainability” means dižerent things to dižerent people, the World Business Council for Sustainable Development describes a situation where all the earth’s inhabitants can live well with adequate resources.57 From a business perspective, sustainability has been described as a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.58 Sustainability issues are now moving up the agenda of business leaders and the boards of thousands of companies. We’ll examine sustainability and its importance to managers in other places throughout the book. Focus on the Employee In 2015, more than 75 percent of organizations worldwide indicated that they would follow a strategy of building talent from within their organizations rather than recruiting talent from the external labor force.59 Also, progressive companies recognize the importance of treating employees well not only because it’s simply the right thing to do, but also because it is good business. Well-treated employees are more likely to go the extra mile when performing their jobs. Every year, Fortune magazine publishes the list titled Great Places to Work. In 2015, outdoor retailer L.L. Bean was among the top 10 retail companies, and it ranked rst for an outdoor retailer. L.L. Bean president and CEO Chris McCormick maintains that L.L. Bean’s strong leadership makes it an employer of choice. According to McCormick, “It reects the work our leadership has done to develop a culture that helps ensure employees feel trusted to do a good job, take pride in their work, and feel that their contributions are truly valued.”60 Successful managers regularly provide performance feedback that serves as an evaluation of an employee’s performance and provides the foundation for discussing developmental opportunities. Ežective performance appraisal outcomes depend on clearly communicating performance expectations and the resources available to help employees perform well and providing feedback on how well expectations were met. Also, conversations about an employee’s career aspirations in the context of past performance serve a developmental role that will motivate workers to strive for excellence. When performance appraisal works in these ways, the company stands to build a strong talent base. Developmental practices also can support a structure on which to base rewards. Ežective managers strive to reward employees with competitive base wages or salary and pay raises that recognize past performance and future potential. Successful managers often embrace work-life practices and provide encouragement to employees who wish to use them. Such behavior expresses the value the manager and company leadership place on the well-being of employees. The company stands to benet through higher employee satisfaction, talent retention, and higher employee engagement.61 WHY study management? You may be wondering why you need to study management. If you’re majoring in accounting or marketing or any eld other than management, you may not understand how studying management is going to help your career. We can explain the value of studying management by looking at three things: the universality of management, the reality of work, and the rewards and challenges of being a manager.