Understanding Management , 5th Edition

720 Pages·2005·14.71 MB·English

by  Richard L. Daft

Understanding
Management
F I F T H E D I T I O N
Richard L. Daft
Vanderbilt University
Dorothy Marcic
Vanderbilt University
Understanding Management, 5th Edition
Richard L. Daft and Dorothy Marcic
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To our daughters Roxanne, Solange and Elizabeth,
who have taught us the importance of good management in everyday life
In memory of Heidi Grebacher (1944–2005) whose
love through many years was a solace and joy
05715_01_FM_pi-1.ps 9-29-05 3:42 PM Page iv
PPrreeffaaccee
The New Workplace
We are entering a new era, one unlike any before, and the major difference can be
summed up in a word: change. The tremendous forces behind such change include the
intensity of increased globalization; the movement of people around the world with its
accompanying multi-culturalism; and, perhaps most of all, the explosion of the infor-
mation age. Understanding Management, Fifth Edition, was developed to help students
grasp these changes and cope with the emerging world economies, and it has particu-
lar relevance to those who are interested in understanding the value and dynamics of
small and medium-sized organizations. Unlike traditional management texts, this book
does not rely on abstract theories and examples from corporations that are applicable
only to top managers of billion-dollar companies. Rather, our vision is to appeal to stu-
dents on a practical level and to provide insight and meaningful information for them
to succeed in their futures of “working for a living.” To this end, Understanding
Managementcontains several distinctive elements:
Current Management Thinking
The vision for the fifth edition of Understanding Managementis to explore the new man-
agement ideas in a way that is interesting and valuable to students, while retaining the
best of traditional management thinking. To achieve this vision, the most recent man-
agement concepts and research are included as well as the contemporary application of
management ideas in organizations. The combination of established scholarship, new
ideas, and real-life applications gives students a taste of the energy, challenge, and adven-
ture inherent in the dynamic field of management. Examples were selected for their rel-
evance and appeal to students interested in real management issues and how problems
are being addressed in local companies. These management concepts are especially appli-
cable to readers with interest in small business management and entrepreneurship.
Reinforcement of Management Concepts
Case applications, boxed items, key terms, exhibits, photo captions, and end of chap-
ter materials are heavily oriented toward middle management and explore supervisory
issues being dealt with in smaller companies. Understanding Management, Fifth
Edition, focuses on vivid illustrations of real organizations that affect people at every
level, whatever the size of the company. In our view, this is the most interesting, up to
date, and practical way to reinforce our vision of the book, and it is an effective way to
help students identify with and fully comprehend the changing state of current man-
agement situations. The textual and graphic portions of the textbook help students
grasp the abstract and sometimes distant world of management.
Full Technology Coverage
In recognition of the role of technology in today’s world, each chapter of the text integrates
coverage of the Internet and emerging technology into the various topics covered in the
chapter. In addition, most chapters contain a Digital, Inc.box that features a technologically
savvy company or highlights a trend that is impacting today’s organizations. The book’s
technology emphasis is reflected in the Surf the Netexercises at the end of each chapter.
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Focus on the Future
The world of work is changing rapidly. In response, the field of management is under-
going a revolution. The result is “Managing in Turbulent Times,” the theme of this edi-
tion of Understanding Management. Demands on today’s managers go well beyond the
techniques and ideas traditionally taught in management courses. The traditional
world of work assumed the purpose of management was to control and limit people,
enforce rules and regulations, seek stability and efficiency, design a top-down hierar-
chy to direct people, and achieve bottom-line results. The new workplace and emerg-
ing management paradigm recognizes that managers need different skills to engage
workers’ hearts and minds as well as take advantage of their physical labor. The new
workplace asks that managers focus on leading change, on harnessing people’s creativ-
ity and enthusiasm, on finding shared vision and values, and on sharing information
and power. Teamwork, collaboration, participation, and learning are guiding principles
that help managers and employees maneuver the difficult terrain of the complex busi-
ness environment. Managers focus on developing, not controlling, people to adapt to
new technologies and extraordinary environmental shifts and, thus, achieve total cor-
porate effectiveness.
The new workplace and the traditional paradigm are guiding management actions.
The vision for the fifth edition of Understanding Management is to explore the new
management ideas in a way that is interesting and valuable to students, while retaining
the best of traditional management thinking. To achieve this vision, the most recent
management concepts and research as well as the contemporary application of man-
agement ideas in organizations are included. The combination of established scholar-
ship, new ideas, and real-life applications gives students a taste of the energy, challenge,
and adventure inherent in the dynamic field of management. The textual portion of
this book has been enhanced through the engaging, easy-to-understand writing style
and the many in-text examples and boxed items that make the concepts come alive for
students. In addition to the easy-to-understand book’s writing style, many practical
examples and profiles are of real people involved in real business dilemmas. The
graphic component has been enhanced with several new exhibits and a new set of
photo essays that illustrate specific management concepts.
Understanding Management provides a book of utmost quality that captures the
excitement of organizational management, creating in students respect for the chang-
ing field of management and confidence that they can understand and master it.
New and Improved Topic Coverage and Organization
The chapter sequence in Understanding Management is organized around the manage-
ment functions of planning, organizing, leading, and controlling. These four functions
encompass management research and characteristics of the manager’s job. The fifth
edition of Understanding Managementfocuses on the future of management education
by identifying and describing emerging elements and examples of the new workplace
and the changing management paradigm.
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Part One
Part One introduces the world of management, including the nature of management,
issues surrounding the new workplace, the learning organization, and historical per-
spectives on management.
• Chapter 1introduces the new workplace and defines the changing management par-
adigm. The chapter explores the growing importance of leadership and new manage-
ment competencies needed to thrive in the business world. It discusses the forces
affecting organizations and managers, including a segment on managing during crises
and unexpected events, both of which are important skills in the volatile workplace.
Additionally, it contains a significantly expanded discussion of the behavioral sciences
approach. This chapter contains a new section on managing the technology-driven
workplace, introducing the concepts of e-business (B2B, B2C, and C2C), intranets
and extranets, enterprise resource planning, and knowledge management. There is
continued coverage of the historical development of management and organizations.
Part Two
Part Two examines the environments of management and organizations. This section
includes material on the business environment and corporate culture, the global envi-
ronment, ethics and social responsibility, the natural environment, and the environ-
ment of entrepreneurship and small business management.
• Chapter 2includes a section on culture. The four types of culture (adaptability cul-
ture, achievement culture, bureaucratic culture, and clan culture) are explored in
terms of their relationship to the external environment. A complete section of this
chapter is devoted to trends such as virtual teams and telecommuting that put
demands on managers creating strong adaptive cultures.
• Chapter 3includes an updated and enlarged discussion of GATT and WTO.
• Chapter 4presents an updated and expanded exploration of environmental respon-
sibility and how today’s organizations are meeting their responsibilities in this area.
This chapter includes a new section on ethical leadership, including a new discus-
sion of ethical issues associated with information technology.
Part Three
Part Three presents three chapters on planning, including organizational goal setting
and planning, strategy formulation and implementation, and the decision-making
process.
• Chapter 5 incorporates a new section on crisis management planning and consid-
ers the impact of the Internet and e-business on strategy.
• Chapter 6includes a discussion of new decision approaches for the new workplace,
encompassing the more active involvement required of everyone in the organization
as a result. The chapter contains a new section on the Internet and e-business,
including e-business strategies, a discussion of e-marketplaces, using ERP and CRM
to improve business operations, and knowledge management. It explores trends in
information technology, such as the wireless Internet and instant messaging, and
how they affect organizations and managers.
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Part Four
Part Four focuses on organizing processes. These chapters describe dimensions of
structural design, the design alternatives managers can use to achieve strategic objec-
tives, structural designs for promoting innovation and change, the design and use of
the human resource function, and the ways managing diverse employees are significant
to the organizing function.
• Chapter 7 has an expanded and updated discussion of the network organization,
and includes a new section on virtual organizations. Additionally, this chapter dis-
cusses how digital technology affects structure. This chapter contains expanded
coverage of innovations such as network and virtual organizations, comparing and
contrasting the characteristics of traditional organizations with those of the emerg-
ing workplace.
• Chapter 8has been thoroughly revised and updated to reflect the various aspects of
change and development as exhibited in the workplace.
• Chapter 9looks at how human resource management is changing due to globaliza-
tion, information technology, and the need to build human capital. It also explores
leveraging the power of diversity for the organization’s benefit.
Part Five
Part Five is devoted to leadership. This section begins with a chapter on organizational
behavior, providing a foundation for understanding people in organizations. This paves
the way for subsequent discussion of leadership, motivating employees, communica-
tion, and team management.
• Chapter 10includes a section on multicultural teams and employee network groups
as ways to build and support a diverse workforce, leveraging the power of diversity
for the benefit of the organization. The chapter places emphasis on the challenges
faced by minorities and includes a discussion of the potential benefits and difficul-
ties of emotional connections in the workplace.
• Chapter 11 presents a new section on emotional intelligence and a discussion of
employees’ and organizations’ responses to stress management in organizations.
• Chapter 12 includes a discussion about leadership for the workplace, including
Level 5 leadership, male versus female methods of leading, virtual leadership, and
servant leadership. It has a brief new discussion of visionary leadership.
• Chapter 13contains an added discussion of the Q12: a Gallup Organization survey
of the factors that influence employee motivation.
• Chapter 14has a section on feedback and learning as important components of the
communication process.
Part Six
Part Six describes the controlling function of management, including basic principles
of total quality management, the design of control systems, information technology,
and techniques for control of operations management.
vii
• Chapter 15 presents information on Six Sigma quality control measurements and
market value-added financial control measurements. It includes information on
global and virtual teams.
Appendices
The appendices include a continuing case and a section of entrepreneurship and small
business management. The latter explores various aspects of running a business, the
entrepreneurial role, and topics such as the elements of strong business plan, person-
ality traits of entrepreneurs, and case studies of entrepreneurial firms and the environ-
ments entrepreneurs tend to create. Appendix C contains the answers to select
end-of-chapter Manager’s Workbook exercises.
Distinguishing Features
One major goal of this book is to offer better ways of using the textbook medium to
convey management knowledge to the reader. To this end, the book includes several
special features:
Chapter Outline and Objectives. Each chapter begins with a clear statement of
its learning objectives and an outline of its contents. These devices provide an overview
of what is to come and can be used by students to guide their study and test their
understanding and retention of important points.
Manager’s Challenge and Solution. The text portion of each chapter begins
with a real-life problem faced by an organization manager. The problem pertains to the
topic of the chapter and will heighten students’ interest in chapter concepts. The ques-
tions posed in the Manager’s Challenge are resolved in the Manager’s Solution at the
end of the chapter, where chapter concepts guiding the management’s actions are
highlighted.
Take a Moment. New to this edition, the Take a Moment feature is carried
throughout the chapter. It provides an in-text reference that directs students from the
chapter content to the associated end of chapter materials, such as an experiential exer-
cise or an ethical dilemma. It allows students to pause and reflect on how the chapter
content affects them personally.
Boxed Features. Understanding Management, 5th Edition, contains a unique set of
pedagogy addressing topics straight from the field of management of special interest to
students, thus heightening their interest in the subject matter and providing an auxiliary
view of management issues typically unavailable in textbooks. These features may
describe a contemporary topic or problem relevant to chapter content, or they may con-
tain a diagnostic questionnaire or a special example of how managers handle a problem:
Best Practice boxes feature companies that make ethical decision regarding their busi-
ness practices and their employees’ well-being; Digital, Inc. boxes focuses on technology
as used by companies to achieve their business goals; Focus On…boxescover company
practices as they relate to issues of diversity, cooperation, and entrepreneurship.
Take Action. New to this edition, the Take Action marginal box appears several
times in each chapter to reinforce the application of management principles into the
learner’s personal best practices.
viii
Contemporary Examples. Every chapter of the text contains a large number of
written examples of management incidents. They are placed at strategic points in the
chapter and are designed to demonstrate the application of concepts to specific com-
panies. These in-text examples—indicated by an icon in the margin—include well-
known entrepreneurs and companies, such as eBay, Verizon, and Toyota, and put
students in touch with the real world of organizations so they can appreciate the value
of management concepts.
Business Blooper. New to this edition, this boxed feature addresses what happens
when good business practices go bad. Like individuals, businesses learn from their mis-
takes and are as prone to lapses in judgment. In the end, what matters is the response
to the mistake. This box describes incidents involving Donald Trump, Wal-Mart, and
many other individuals and companies.
Concept Connection Photo Essays. A key feature of the book is the use of pho-
tographs accompanied by detailed photo essay captions that enhance learning. Each
caption highlights and illustrates one or more specific concepts from the text to rein-
force student understanding of the concepts. Though the photos are beautiful to look
at, they convey the vividness, immediacy, and concreteness of management events in
the business world.
Exhibits. Many aspects of management are research based, and some concepts tend
to be abstract and theoretical. To enhance students’ awareness and understanding of
these concepts, many exhibits have been included throughout the book. These exhibits
consolidate key points, indicate relationships among variables, and visually illustrate
concepts. They make effective use of color to enhance their imagery and appeal.
Glossaries. Learning the management vocabulary is essential to understanding con-
temporary management. This process is facilitated in three ways. First, key concepts are
boldfaced and defined where they first appear in the text. Second, brief definitions are
set out in the margins for easy review and follow-up. Third, a glossary summarizing key
terms and definitions appears at the end of the book for handy reference.
Manager’s Solution and Discussion Questions. Each chapter closes with a
summary of key points that students should retain. The discussion questions are a
complementary learning tool enabling students to check their understanding of key
issues, to think beyond basic concepts, and to determine areas requiring further study.
The summary and discussion questions help students discriminate between main and
supporting points and provide mechanisms for self-teaching.
Manager’s Workbook and Manager’s Workshop. End-of-chapter exercises
provide self-assessments for students and an opportunity to experience management
issues in a personal way. These exercises take the form of questionnaires, scenarios,
and activities; many provide an opportunity for students to work in teams. Answers to
some Manager’s Workbook exercises can be found in Appendix C.
Surf the Net. Each chapter contains three Internet exercises to involve students in
the high-tech world of cyberspace. Students are asked to explore the Web for research
into topics related to each chapter. This hands-on experience helps them develop
Internet, research, and management skills.
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