ELEVENTH EDITION

Global Edition

Stephen P. ROBBINS
San Diego State University

Mary COULTER
Missouri State University

Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Contents
Preface 23

Part 1 The World I Management

Chapter 1

Foundations of Management and Organizations 30

Why Are Managers Important? 32
Who Are Managers and Where Do They Work?

33

Who Is a Manager? 33
Where Do Managers Work? 34

What Do Managers Do? 36

Management Functions 37
Mintzberg's Managerial Roles and a Contemporary Model of Managing 38
Management Skills 40
How Is the Manager's Job Changing? 41
Importance of Customers to the Manager's Job 42
Importance of Innovation to the Manager's Job 44
Importance of Sustainability to the Manager's Job 44
Why Study Management? 45
The Universality of Management 45
The Reality of Work 46
Rewards and Challenges of Being a Manager 46

Boxed Features
A Manager's Dilemma 32
BY THE NUMBERS

FUTURE VISION

33

The Working World in 2020

LEADER WHO MADE A DIFFERENCE

| Andrew

35

Cherng

40

My Response to A Manager's Dilemma 47

Chapter Summary by Learning Outcomes 48

Review and Discussion Questions 49
Preparing for: My Career 49
Case Application 1: More Than a Good Story 51
Case Application 2: Flight Plans 52

Module

Management History 55
Early Management 56
Classical Approach 57
Behavioral Approach 6O
Quantitative Approach 62
Contemporary Approaches

64

10

CONTENTS

Chapter 2

Constraints and Challenges for the Global

Manager 70
The Manager: Omnipotent or Symbolic? 72
The Omnipotent View 72
The Symbolic View 73

The External Environment: Constraints and

Challenges 74
The Economic Environment 75
The Demographic Environment 75
How the External Environment Affects Managers

76

Organizational Culture: Constraints

and Challenges 79
What Is Organizational Culture? 79
Strong Cultures 80
Where Culture Comes From and How It Continues
How Employees Learn Culture 83
How Culture Affects Managers

82

84

Current Issues in Organizational Culture

86

Creating an Innovative Culture 86

Creating a Customer-Responsive Culture 86
Spirituality and Organizational Culture 86
Boxed Features
A Manager's Dilemma 72
FUTURE VISION | The Working World in 2020 75
LEADER WHO MADE A DIFFERENCE | Betsy Mclaughlin
BY THE NUMBERS 84
My Response to A Manager's Dilemma

78

89

Chapter Summary by Learning Outcomes 9O

Review and Discussion Questions 91
Preparing for: My Career 91
Case Application 1: Out of Control 93
Case Application 2: MYDIN 94

Part II Managing in the Twenty-First Century

Chapter 3

Global Management 96
Who Owns What? 9 8
What's Your Global Perspective? 99
Understanding the Global Environment 1OO
Regional Trading Alliances 100
Global Trade Mechanisms 104

Doing Business Globally 1O5

Different Types of International Organizations
How Organizations Go International 106

106

Managing in a Global Environment 1O8

The Political/Legal Environment 108
The Economic Environment 108
The Cultural Environment 109
Global Management in Today's World

112

CONTENTS
Boxed Features
A Manager's Dilemma 98
LEADER WHO MADE A DIFFERENCE | Indra Nooyi 100
BYTHE NUMBERS 105
My Response to A Manager's Dilemma 115
Chapter Summary by Learning
Outcomes 116
Review and Discussion Questions
Preparing for: My Career

117

117

Case Application 1: Held Hostage

119

Case Application 2: Global Stumble

Chapter 4

121

The Diverse Workforce 124

Diversity 1O1 126
What Is Workplace Diversity? 126
Why Is Managing Workforce Diversity So Important? 128
The Changing Workplace 13O
Characteristics of the U.S. Population 130
What About Global Workforce Changes? 131
Types of Workplace Diversity 133
Age 133
Gender 134
Race and Ethnicity 135
Disability/Abilities 136 ,
Religion 137
GLBT: Sexual Orientation and Gender Identity 137
Other Types of Diversity 138
Challenges in Managing Diversity 138
Personal Bias 138
Glass Ceiling 140
Workplace Diversity Initiatives 14O
The Legal Aspect of Workplace Diversity 141
Top Management Commitment to Diversity 142
Mentoring 142
Diversity Skills Training 143
Employee Resource Groups 143
Boxed Features
A Manager's Dilemma 126
BYTHE NUMBERS 137
LEADER WHO MADE A DIFFERENCE | Kenneth I. Chenault
My Response to A Manager's Dilemma 144

140

Chapter Summary by Learning Outcomes

Review and Discussion Questions
Preparing for: My Career

145

146

146

Case Application 1: Mission Possible: Strategic

Diversity 148
Case Application 2: Women in Management at
Deutsche Telekom: Part 2 149

11

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CONTENTS

Chapter 5

Social Responsibility and Ethics 150

What Is Social Responsibility? 152
From Obligations to Responsiveness to Responsibility
Should Organizations Be Socially Involved? 154
Green Management and Sustainability
How Organizations Go Green 155
Evaluating Green Management Actions 157

152

155

Managers and Ethical Behavior 157

Factors That Determine Ethical and Unethical Behavior 158
Ethics in an International Context 161
Encouraging Ethical Behavior 163
Employee Selection 163
Codes of Ethics and Decision Rules 163
Leadership 165
Job Goals and Performance Appraisal 165
Ethics Training. 166
Independent Social Audits 167
Protective Mechanisms 167
Social Responsibility and Ethics Issues
In Today's World 167
Managing Ethical Lapses and Social Irresponsibility 167
Social Entrepreneurship 168
Businesses Promoting Positive Social Change 169
Boxed Features
A Manager's Dilemma 152
LEADER WHO MADE A DIFFERENCE

Yvon Chouinard 156

BYTHE NUMBERS 160

My Response to A Manager's Dilemma 170

Chapter Summary by Learning Outcomes 171
Review and Discussion Questions
Preparing for: My Career

172

173

Case Application 1: Lessons from

Lehman Brothers: Will We Ever Learn?

175

Case Application 2: Green Up on Aisle Two

Chapter 6

176

Change and Innovation 178

The Change Process 18O
Two Views of the Change Process 180
Types of Organizational Change
What Is Organizational Change? 183
Types of Change 183
Managing Resistance to Change

182

186

Why Do People Resist Change? 186

Techniques for Reducing Resistance to Change 186
Contemporary Issues in Managing Change
Changing Organizational Culture 187
Employee Stress 189
Making Change Happen Successfully 192
Stimulating Innovation 193
Creativity Versus Innovation 194
Stimulating and Nurturing Innovation 194

187

CONTENTS
Boxed Features
A Manager's Dilemma 180
FUTURE VISION | The Working World in 2020 184
BYTHE NUMBERS 190
LEADER WHO MADE A DIFFERENCE | RatanTata 196
My Response to A Manager's Dilemma 197

Chapter Summary by Learning Outcomes

Review and Discussion Questions
Preparing for: My Career

198

199

199

Case Application 1: Too Big to Change?

2O2

Case Application 2: The Port of Rotterdam

Part ill
Chapter 7

2O3

Planning
Decision-Making 204
The Decision-Making Process 2O6
Step I: Identifying a Problem 207
Step 2: Identifying Decision Criteria 208
Step 3: Allocating Weights to the Criteria 208
Step 4: Developing Alternatives 209
Step 5: Analyzing Alternatives 209
Step 6: Selecting an Alternative 210
Step 7: Implementing the Alternative 210
Step 8: Evaluating Decision Effectiveness 210
Managers Making Decisions 210
Making Decisions: Rationality 211
Making Decisions: Bounded Rationality 211
Making Decisions: The Role of Intuition 212
Making Decisions: The Role of Evidence-Based Management 213
Types of Decisions and Decision-Making
Conditions 213
Types of Decisions 213
Decision-Making Conditions 215
Decision-Making Styles 218
Linear-Nonlinear Thinking Style Profile 218
Decision-Making Biases and Errors 218
Overview of Managerial Decision Making 220
Effective Decision Making in Today's World

22O

Boxed Features
A Manager's Dilemma 206
FUTURE VISION | The Working World in 2020 215
LEADER WHO MADE A DIFFERENCE | Mikhail D. Prokhorov 217
BYTHE NUMBERS 221
My Response to A Manager's Dilemma 222

Chapter Summary by Learning Outcomes

Review and Discussion Questions
Preparing for: My Career

223

224

224

Case Application 1: China's TV Industry

227

Case Application 2: Underwater Chaos

228

13

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CONTENTS

Chapter 8

Foundations of Planning 230

The What and Why of Planning
What Is Planning? 232
Why Do Managers Plan? 233

232

Planning and Performance 233

Goals and Plans

233

Types of Goals 234

Types of Plans 235
Setting Goals and Developing Plans
Approaches to Setting Goals 236
Developing Plans 239
Approaches to Planning 240

236

Contemporary Issues in Planning 24O

How Can Managers Plan Effectively in Dynamic
Environments? 241
How Can Managers Use Environmental Scanning? 242
Boxed Features
A Manager's Dilemma 232
LEADER WHO MADE A DIFFERENCE | Jeff Bezos' 236

BYTHE NUMBERS 239

My Response to A Manager's Dilemma 243

Chapter Summary by Learning Outcomes 244

Review and Discussion Questions 245
Preparing for: My Career 245
Case Application 1: Short-Term and Long-Term
Planning in the UK Construction Industry 247
Case Application 2: Building a Future

Chapter 9

248

Strategic Management 250

Strategic Management 252
What Is Strategic Management? 252
Why Is Strategic Management Important? 253
The Strategic Management Process 254
Step I: Identifying the Organization's Current Mission, Goals,
and Strategies 255
Step 2: Doing an External Analysis 255
Step 3: Doing an Internal Analysis 256
Step 4: Formulating Strategies 256
Step 5: Implementing Strategies 256
Step 6: Evaluating Results 256
Corporate Strategies 256
What Is Corporate Strategy? 256
What Are the Types of Corporate Strategy? 257
How Are Corporate Strategies Managed? 258
Competitive Strategies 259
The Role of Competitive Advantage 259
Choosing a Competitive Strategy 261
Current Strategic Management Issues

262

The Need for Strategic Leadership 263

The Need for Strategic Flexibility 264
Important Organizational Strategies for Today's Environment 264

CONTENTS
Boxed Features
A Manager's Dilemma 252
LEADER WHO MADE A DIFFERENCE
BYTHE NUMBERS

Ursula Burns

258

262

My Response to A Manager's Dilemma 267

Chapter Summary by Learning Outcomes 2 6 8

Review and Discussion Questions 269
Preparing for: My Career 27O
Case Application 1: Gaga Over Gaga 272
Case Application 2: Faded Signal 273

Module

Planning Tools and Techniques 276

Techniques for Assessing the Environment

276

Environmental Scanning 276

Forecasting 277
Benchmarking 279

Techniques for Allocating Resources

279

Budgeting 280
Scheduling 281
Breakeven Analysis 284
Linear Programming 285

Contemporary Planning Techniques

286

Project Management 286

Scenario Planning 287

Part IV

Organizing

Chapter 10 Foundations of Organizational Design 290

Designing Organizational Structure
Work Specialization 293
Departmentalization 293
Chain of Command 296
Span of Control 299
Centralization and Decentralization
Formalization 301

292

300

Mechanistic and Organic Structures 3O1

Contingency Factors Affecting Structural Choice 3O2
Strategy and Structure 303
Size and Structure 303
Technology and Structure 303
Environmental Uncertainty and Structure 304

Traditional Organizational Designs 3O5

Simple Structure 305
Functional Structure 306
Divisional Structure 306
Boxed Features
A Manager's Dilemma 292
BYTHE NUMBERS

301

LEADER WHO MADE A DIFFERENCE

Andrea Jung

My Response to A Manager's Dilemma 307

304

15

16

CONTENTS
Chapter Summary by Learning Outcomes
Review and Discussion Questions
Preparing for: My Career

3O8

3O9

3O9

Case Application 1: Project Sapphire

311

Case Application 2: A New Kind of Structure

312

Chapter 11 Contemporary Organizational Design 314

Contemporary Organizational Designs
Team Structures 317
Matrix and Project Structures 318
The Boundaryless Organization 318
Learning Organizations 320
Organizing for Collaboration 321
Internal Collaboration 322
External Collaboration 323
Flexible Work Arrangements

316

325

Telecommuting 325
Compressed Workweeks, Flextime, and Job Sharing 326
Contingent Workforce

327

Today's Organizational Design Challenges

Keeping Employees Connected 328
Managing Global Structural Issues 329

328

Boxed Features
A Manager's Dilemma 316
FUTURE VISION

| The Working World in 2020 320

BYTHE NUMBERS 325

LEADER WHO MADE A DIFFERENCE

| John T Chambers

329

My Response to A Manager's Dilemma 330

Chapter Summary by Learning Outcomes
Review and Discussion Questions
Preparing for: My Career

331

332

332

Case Application 1: In the Driver's Seat

Case Application 2: The Virus Hunters

335
336

Chapter 12 Human Resource Management 338

The Human Resource Management Process
Why Is HRM Important? 340
External Factors That Affect the HRM Process 341
Identifying and Selecting Competent
Employees 346
Human Resource Planning 346
Recruitment and Decruitment 347
Selection 349
Providing Employees with Needed Skills
and Knowledge 351
Orientation 351
Employee Training 352
Retaining Competent, High-Performing
Employees 354
Employee Performance Management 354
Compensation and Benefits 354

34O

CONTENTS
Contemporary Issues in Managing Human
Resources 356
Managing Downsizing 356
Managing Sexual Harassment 357
Managing Work-Life Balance 358
Controlling HR Costs 360
Boxed Features
A Manager's Dilemma 340
LEADER WHO MADE A DIFFERENCE
Lisa Brummel 345
BYTHE NUMBERS 352
FUTURE VISION | The Working World in 2020 359

My Response to A Manager's Dilemma 361

Chapter Summary by Learning Outcomes
Review and Discussion Questions
Preparing for: My Career

362

363

364

Case Application 1: Thinking Outside

the Box 366
Case Application 2: Social Connections

Module

367

Managing Your Career 368

Career Opportunities in Management 368
Finding a Culture That Fits 368
Taking Risks 369
Reinventing Yourself 369
Learning to Get Along with Difficult People 369
What Do I Want from My Job? 370
How Can I Have a Successful Career? 370

Chapter 13 Groups and Teams 372

Groups and Group Development 374
What Is a Group? 374
Stages of Group Development 374
Work Group Performance and Satisfaction 376
External Conditions Imposed on the Group 376
Group Member Resources 377
Group Structure 377
Group Tasks 384
Turning Groups into Effective Teams 385
What Is a Work Team? 385
Types of Work Teams 386
Creating Effective Work Teams 387
Current Challenges in Managing Teams 389
Managing Global Teams 389
Building Team Skills 391
Understanding Social Networks 391
Boxed Features
A Manager's Dilemma 374
BYTHE NUMBERS 377
FUTURE VISION | The Working World in 2020 384
LEADER WHO MADE A DIFFERENCE | Marissa Mayer 389
My Response to A Manager's Dilemma 392

17

18

CONTENTS
Chapter Summary by Learning Outcomes
Review and Discussion Questions
Preparing for: My Career

393

394

394

Case Application 1: Aiming Higher: Motivating

Knowledge Workers 396
Case Application 2: Making Order Out of Chaos 3 9 7

Part V Leading
Chapter 14 Foundations of Individual Behavior 398
Focus and Goals of Organizational Behavior 4OO
Focus of Organizational Behavior 400
Goals of Organizational Behavior 401
Attitudes and Job Performance 4O2
Job Satisfaction 403
Job Involvement and Organizational Commitment 405
Employee Engagement 405
Attitudes and Consistency 406
Cognitive Dissonance Theory 407
Attitude Surveys 407
Implications for Managers 408
Personality 4O8
MBTI 409
The Big Five Model 410
Additional Personality Insights 410
Personality Types in Different Cultures 412
Emotions and Emotional Intelligence 413
Implications for Managers 414
Perception 415
Factors That Influence Perception 415
Attribution Theory 416
Shortcuts Used in Judging Others 417
Implications for Managers 418
Learning 418
Operant Conditioning 418
Social Learning 419
Shaping: A Managerial Tool 419
Implications for Managers 420
Contemporary Issues in Organizational Behavior
Managing Generational Differences 420
Managing Negative Behavior in the Workplace 422
Boxed Features
A Manager's Dilemma 400
LEADER WHO MADE A DIFFERENCE

Chew Choon Seng 408

BYTHE NUMBERS 411

FUTURE VISION

The Working World in 2020 413

My Response to A Manager's Dilemma 423

Chapter Summary by Learning Outcomes
Review and Discussion Questions
Preparing for: My Career

426

425

424

42O

CONTENTS
Case Application 1: Understanding HCLites:
Part 2 4 2 8
Case Application 2: Odd Couples 429
Chapter 15 Communication 430
The Nature and Function of Communication

432

. What Is Communication? 432

Functions of Communication 433

Methods of Interpersonal Communication 4 3 4

Effective Interpersonal Communication 437
Barriers to Communication 437
Overcoming the Barriers 438

Organizational Communication 44O

Formal Versus Informal Communication 440
Direction of Communication Flow 440
Organizational Communication Networks 441
Workplace Design and Communication 442

Information Technology and Communication

444

How Technology Affects Managerial Communication 444

How Information Technology Affects Organizations 445

Communication Issues in Today's

Organizations 4 4 5
Managing Communication in an Internet World 445
Managing the Organization's Knowledge Resources 446
The Role of Communication in Customer Service 447
Getting Employee Input 448
Communicating Ethically 448
Boxed Features
A Manager's Dilemma 432
LEADER WHO MADE A DIFFERENCE | Steve Jobs 435
FUTURE VISION | The Working World in 2020 444
BYTHE NUMBERS 446
My Response to A Manager's Dilemma 449

Chapter Summary by Learning Outcomes 4 5 O

Review and Discussion Questions 451
Preparing for: My Career 452
Case Application 1: Gossip Girls 4 5 3
Case Application 2: Delivery Disaster 4 5 4
Chapter 16 Motivation 456
What Is Motivation? 4 5 8
Early Theories of Motivation

459

Maslow's Hierarchy of Needs Theory 459

McGregor's Theory X and Theory Y 460
Herzberg's Two-Factor Theory 461
Three-Needs Theory 462
Contemporary Theories of Motivation 4 6 3
Goal-Setting Theory 463
Reinforcement Theory 465
Designing Motivating Jobs 466
Equity Theory 469

19

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CONTENTS
Expectancy Theory 470
Integrating Contemporary Theories of Motivation 471

Current Issues in Motivation

473

Motivating in Tough Economic Circumstances 473

Managing Cross-Cultural Motivational Challenges 473
Motivating Unique Groups of Workers 475
Designing Appropriate Rewards Programs 477
Boxed Features
A Manager's Dilemma 458
LEADER WHO MADE A DIFFERENCE | John Goodnight
FUTURE VISION | The Working World in 2020 475

464

BYTHE NUMBERS 477

My Response to A Manager's Dilemma 479

Chapter Summary by Learning Outcomes 48O

Review and Discussion Questions 481
Preparing for: My Career 481
Case Application 1: Searching For? 483
Case Application 2: Best Practices at Volvo 484

Chapter 17 Leadership 486

Who Are Leaders and What Is Leadership?
Early Leadership Theories 488

488

Leadership Trait Theories 489

Leadership Behavior Theories 490

Contingency Theories of Leadership 4 9 2

The Fiedler Model 492
Hersey and Blanchard's Situational Leadership Theory 494
Path-Goal Model 495
Contemporary Views of Leadership 497
Leader-Member Exchange (LMX) Theory 497
Transformational-Transactional Leadership 497
Charismatic-Visionary Leadership 498
Team Leadership 499

Leadership Issues in The Twenty-First Century 5OO

Managing Power 500
Developing Trust 501
Empowering Employees 502
Leading Across Cultures 503
Becoming an Effective Leader 504
Boxed Features
A Manager's Dilemma 488
LEADER WHO MADE A DIFFERENCE | Ajay Banga 497
BYTHE NUMBERS 499
My Response to A Manager's Dilemma 505

Chapter Summary by Learning Outcomes 5O6

Review and Discussion Questions 5O7
Preparing for: My Career 5O7
Case Application 1: Growing Leaders 510
Case Application 2: Master and Commander 511

CONTENTS

Part VI Controlling
Chapter 18 Foundations of Control 512
What Is Controlling and Why Is It Important? 514
The Control Process 516
Step I. Measuring Actual Performance 516
Step 2. Comparing Actual Performance Against the Standard 517
Step 3. Taking Managerial Action 518
Managerial Decisions in Controlling

519

Controlling for Organizational Performance 519

What Is Organizational Performance? 520
Measures of Organizational Performance 520

Tools for Measuring Organizational

Performance 521
Feedforward/Concurrent/Feedback Controls 522
Financial Controls 523
Balanced Scorecard 524
Information Controls 525
Benchmarking of Best Practices 526

Contemporary Issues in Control 527

Adjusting Controls for Cross-Cultural Differences 527
Workplace Concerns 527
Workplace Violence 529
Controlling Customer Interactions 531
Corporate Governance 532
Boxed Features

A Manager's Dilemma 514

LEADER WHO MADE A DIFFERENCE | Bob Iger 526
BYTHE NUMBERS 528
My Response to A Manager's Dilemma 534

Chapter Summary by Learning Outcomes 5 3 5

Review and Discussion Questions 5 3 6
Preparing for: My Career 5 3 6
Case Application 1: Deepwater in Deep Trouble 5 3 8
Case Application 2: Baggage Blunders 539

Chapter 19 Operations Management 542

The Role of Operations Management
Services and Manufacturing 545
Managing Productivity 545
Strategic Role of Operations Management

544

546

What Is Value Chain Management and Why Is

It Important? 547
What Is Value Chain Management? 547
Goal of Value Chain Management 548
Benefits of Value Chain Management 548

Managing Operations Using Value Chain

Management 549
Value Chain Strategy 549
Obstacles to Value Chain Management

552

21

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CONTENTS

Current Issues in Managing Operations

554

Technology's Role in Operations Management 554

Quality Initiatives 555
Quality Goals 556
Mass Customization and Lean Organization 557
Boxed Features
A Manager's Dilemma 544
LEADER WHO MADE A DIFFERENCE | Muhtar Kent 547
BYTHE NUMBERS 553
My Response to A Manager's Dilemma 558

Chapter Summary by Learning Outcomes 5 5 9

Review and Discussion Questions 56O
Preparing for: My Career 56O
Case Application 1: A Fast Way to Fast Food 5 6 2
Case Application 2: Lean Manufacturing in China 563

Appendix

Managing Entrepreneurial Ventures 565

The Context of Entrepreneurship
What Is Entrepreneurship? 565
Why Is Entrepreneurship Important?
The Entrepreneurial Process 566
What Do Entrepreneurs Do? 567

565

566

Social Responsibility and Ethics Issues Facing Entrepreneurs 567

Start-Up and Planning Issues

568

Identifying Environmental Opportunities and Competitive

Advantage 568
Researching the Venture's FeasibilityGenerating
and Evaluating Ideas 571
Researching the Venture's FeasibilityCompetitors 572
Researching the Venture's FeasibilityFinancing 573
Planning the VentureDeveloping a Business Plan 574

Organizing Issues 575

Legal Forms of Organization , 575
Organizational Design and Structure 578
Human Resource Management Issues in Entrepreneurial
Ventures 578
Stimulating and Making Changes 579
The Importance of Continuing Innovation 580

Leading Issues 58O

Personality Characteristics of Entrepreneurs 580
Motivating Employees Through Empowerment 581
The Entrepreneur as Leader 582

Controlling Issues 5 8 3
Managing Growth 583
Managing Downturns 585
Exiting the Venture 586
Managing Personal Life Choices and Challenges

Endnotes 589
Name Index 635
Organization Index
Glindex 656
Photo Credits 671

652

586