Essentials of Management: A Concise Introduction

393 Pages·2012·8.435 MB·English

by  David Boddy

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this concise, readable book offers an unparalleled introduction to the theory and practice
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of management. Packed with examples and questions to catch your interest, it shows how
ideas and theories of management relate to the real world. f
Essentials of Management introduces the themes and functions of management, showing
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them within the clear framework of planning, organising, leading and controlling. it
incorporates the latest research, and uses recent and topical examples of management
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in practice to bring the topic to life.
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this textbook is relevant to students from all subject areas. Whether you are specialising in
business, or an engineering student taking a single module in the area, this book will offer a
you an engaging and clear introduction to management.
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Key features to aid your learning include:
• Case studies from many international organisations, including well-known e
multinationals, start-up businesses and small to medium sized enterprises.
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• a clear, attractive text design that is easy to read and learn from.
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• Exercises throughout the book inviting you to think critically and reflect on real-life
management situations and problems.
• a focus on key current issues and debates around internationalisation, sustainability,
and corporate governance.
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about the author d
y
David Boddy is a Research fellow at the school of Business and
Management, University of Glasgow. He is also the author of two
other market-leading textbooks by Pearson Education: Managing
Information Systems (2009) and Management (2011).
www.pearson-books.com
Cover image © Getty images
CVR_BODD9289_01_SE_CVR.indd 1 06/12/2011 10:27
ESSENTIALS OF
MANAGEMENT
Visit the Essentials of Management Companion Website at w ww.pearsoned.co.uk/boddy
to find valuable student learning material including:
(cid:122) Self assessment multiple choice questions for each chapter
(cid:122) Links to relevant websites
(cid:122) An online glossary to explain key terms
(cid:122) Flashcards to test your knowledge of key terms and defi nitions

David Boddy
U niversity of Glasgow

ESSENTIALS OF

MANAGEMENT
A Concise Introduction
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies around the world
Visit us on the World Wide Web at:
www.pearson.com/uk

First published 2012
© Pearson Education Limited 2012
The right of David Boddy to be identified as author of this work has been asserted by him in
accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without either the prior written permission of the Publishers or a licence permitting
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Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in
this text does not vest in the author or publisher any trademark ownership rights in such trademarks,
nor does the use of such trademarks imply any affiliation with or endorsement of this book by such
owners.
Pearson Education is not responsible for the content of third-party internet sites.

ISBN 978-0-273-73928-9

British Library Cataloguing-in-Publication Data
A catalogue record for this book can be obtained from the British Library.

Library of Congress Cataloging-in-Publication Data
A catalog record for this book is available from the Library of Congress.
10 9 8 7 6 5 4 3 2 1
15 14 13 12 11
Typeset in 10.5/12.5pt Minion by 73
Printed by Rotolito Lombarda, Italy
The publisher’s policy is to use paper manufactured from sustainable forests.
BRIEF CONTENTS
Preface xi
Guided tour of the book x ii
Acknowledgements xv
PART 1 AN INTRODUCTION TO MANAGEMENT
2
1 MANAGING IN ORGANISATIONS 4
2 THEORIES OF MANAGEMENT 2 6
PART 2 THE ENVIRONMENT OF MANAGEMENT 48
3 ORGANISATION CULTURES AND CONTEXTS 5 0
4 MANAGING INTERNATIONALLY 7 0
5 CORPORATE RESPONSIBILITY 9 0
PART 3 PLANNING 108
6 PLANNING 1 10
7 DECISION-MAKING 1 26
8 MANAGING STRATEGY 148
PART 4 ORGANISING 170
9 ORGANISATION STRUCTURES 1 72
10 INFORMATION SYSTEMS AND E-BUSINESS 1 94
11 MANAGING INNOVATION AND CHANGE 212
vi BRIEF CONTENTS
PART 5 LEADING 232
12 INFLUENCING 2 34
13 MOTIVATING 2 54
14 COMMUNICATING 2 76
15 WORKING IN TEAMS 2 96
PART 6 CONTROLLING 316
16 MANAGING OPERATIONS AND QUALITY 3 18
17 CONTROLLING AND MEASURING PERFORMANCE 3 36
Glossary 3 53
References 3 61
Index 369
CONTENTS
Preface x i Further reading 45
Guided tour of the book x ii Weblinks 45
Acknowledgements x v Case study: Robert Owen –
an early management innovator 46
PART 1 AN
PART 2 THE

INTRODUCTION
ENVIRONMENT
TO MANAGEMENT
OF MANAGEMENT
C HAPTER 1
CHAPTER 3
MANAGING IN ORGANISATIONS 4
ORGANISATION CULTURES
1.1 Introduction 5 AND CONTEXTS 5 0
1.2 Managing to add value to resources 6
1.3 Meanings of management 7 3.1 Introduction 51
1.4 Specialisation between areas 3.2 Cultures and their components 52
of management 9 3.3 Types of culture 54
3.4 The competitive environment –
1.5 Influencing through the process
of managing 12 Porter’s five forces 57
1.6 Influencing through the tasks 3.5 The general environment – PESTEL 59
of managing 15 3.6 Stakeholders 62
1.7 Influencing through shaping 3.7 Corporate governance 63
the context 17 Summary 65
1.8 Critical thinking 19 Review questions 65
Summary 20 Further reading 65
Review questions 21 Weblinks 66
Further reading 21 Case study: Nokia 67
Weblinks 22
Case study: Ryanair 23 CHAPTER 4
MANAGING INTERNATIONALLY 7 0
CHAPTER 2
4.1 Introduction 71
THEORIES OF MANAGEMENT 2 6
4.2 Ways to conduct business internationally 73
2.1 Introduction 27 4.3 The contexts of international business –
2.2 Why study management theory? 28 PESTEL 75
2.3 The competing values framework 29 4.4 Legal context – trade agreements
2.4 Rational goal models 31 and trading blocs 78
2.5 Internal process models 34 4.5 Hofstede’s comparison of national cultures 79
2.6 Human relations models 37 4.6 Contrasting management systems 81
2.7 Open systems models 40 4.7 Forces driving globalisation 82
Summary 43 Summary 85
Review questions 44 Review questions 85
viii CONTENTS
Further reading 86 7.4 Decision-making conditions 134
Weblinks 86 7.5 Decision-making models 135
Case study: Starbucks 87 7.6 Biases in making decisions 1 39
7.7 Group decision-making 140
CHAPTER 5 Summary 142
CORPORATE RESPONSIBILITY 9 0 Review questions 144
5.1 Introduction 91 Further reading 144
5.2 Contrasts in business practice 92 Weblinks 144
5.3 Perspectives on individual actions 94 Case study: IKEA 146
5.4 Perspectives on corporate actions 96
CHAPTER 8
5.5 An ethical decision-making model 97
5.6 Stakeholders and corporate MANAGING STRATEGY 1 48
responsibility 99 8.1 Introduction 149
5.7 Corporate responsibility and strategy 100 8.2 Strategy – process, content and
5.8 Managing corporate responsibility 103 context 150
Summary 104 8.3 Planning, learning and political
Review questions 104 processes 151
Further reading 105 8.4 Making sense – external and internal
Weblinks 105 analysis 154
8.5 Making choices (1) – deciding
Case study: The Ford Pinto 106
strategy at corporate level 158
8.6 Making choices (2) – deciding strategy
at business unit level 161
8.7 Making things happen – deciding
PART 3 PLANNING how to deliver strategy 162
8.8 Making revisions – implementing
and evaluating 163
Summary 164
CHAPTER 6 Review questions 165
PLANNING 1 10 Further reading 1 65
Weblinks 166
6.1 Introduction 111
Case study: HMV Group 167
6.2 Purposes of planning 112
6.3 The content of plans 113
6.4 The process of planning 115
6.5 Gathering information 116
PART 4
6.6 Setting goals (or objectives) 118
6.7 Identifying actions and communicating ORGANISING
the plan 120
6.8 Implementing plans and monitoring results 121
Summary 122
Review questions 123 CHAPTER 9
Further reading 123 ORGANISATION STRUCTURES 1 72
Weblinks 123 9.1 Introduction 173
Case study: Crossrail 124 9.2 Structure, strategy and performance 174
9.3 Designing a structure 175
CHAPTER 7 9.4 Grouping jobs into functions and
DECISION-MAKING 1 26 divisions 180
7.1 Introduction 127 9.5 Grouping jobs in matrices, teams
7.2 Stages in making decisions 128 and networks 181
7.3 Programmed and non-programmed 9.6 Co-ordinating work 182
decisions 132 9.7 Mechanistic and organic structures 184
CONTENTS ix
Summary 189 12.3 Traits models 239
Review questions 190 12.4 Behavioural models 240
Further reading 190 12.5 Situational (or contingency) models 243
Weblinks 1 91 12.6 Using personal and positional power 244
Case study: GlaxoSmithKline (GSK) 192 12.7 Using interpersonal skills
and networks 248
CHAPTER 10 Summary 249
INFORMATION SYSTEMS AND Review questions 250
E-BUSINESS 1 94 Further reading 250
10.1 Introduction 195 Weblinks 251
10.2 Converging technologies bring Case study: Apple Inc. 252
new ways to add value 196
10.3 Managing the new opportunities CHAPTER 13
to add value 1 98 MOTIVATING 2 54
10.4 Types of information system 201 13.1 Introduction 255
10.5 The internet and e-business 202 13.2 Perspectives on motivation – targets
10.6 IS, strategy and organisation –
and the psychological contract 256
the big picture 205 13.3 Behaviour modification 259
Summary 207 13.4 Content theories of motivation 260
Review questions 208 13.5 Process theories of motivation 265
Further reading 209 13.6 Designing work to be motivating 269
Weblinks 209 Summary 272
Case study: Asos 210 Review questions 273
Further reading 273
CHAPTER 11
Weblinks 273
MANAGING INNOVATION AND CHANGE 2 12
Case study: The Eden Project 274
11.1 Introduction 213
11.2 Initiating innovation and change 214 CHAPTER 14
11.3 Forms of innovation and change 216 COMMUNICATING 2 76
11.4 The interaction of context and change 217
14.1 Introduction 277
11.5 Four models of change 219
14.2 Communicating to add value 278
11.6 Sources of innovation 223
14.3 Communication processes 280
11.7 Organisational factors in innovation 224
14.4 Selecting communication channels 282
Summary 226
14.5 Communication networks 285
Review questions 227
14.6 Interpersonal skills for communication 289
Further reading 227
Summary 291
Weblinks 228
Review questions 292
Case study: Google 229
Further reading 292
Weblinks 292
Case study: Facebook 294
PART 5 LEADING

CHAPTER 15
WORKING IN TEAMS 2 96
15.1 Introduction 297
15.2 Types of team 298
CHAPTER 12
15.3 Crowds, groups and teams 300
INFLUENCING 2 34
15.4 Team composition 301
12.1 Introduction 235 15.5 Stages of team development 304
12.2 Purposes, targets and outcomes 236 15.6 Team processes 305