ContentsPreface xvAcknowledgments xviiiAbout the authors xix

Part 1 Introduction 1Chapter 1 Managers and management 2

Who are managers and where do they work? 4 What three characteristics do all organisations share? 4

How are managers different from non-managerial employees? 5

RIGHT OR WRONG? 6 What titles do managers have? 6

What is management? 7FROM THE PAST TO THE PRESENT 8

What do managers do? 8 What are the four management functions? 8

What are management roles? 9

What characteristics do managers need? 11

DEVELOPING YOUR Political SKILL 12 Is the manager’s job universal? 12

Why formally study management? 15What factors are reshaping and redefining management? 15 Why are customers important to the manager’s job? 15

Why is sustainability important to the manager’s job? 15

Why are ethics and social responsibility important to the manager’s job? 16

Review and applications 17Chapter summary 17Understanding the chapter 17Understanding management practice 18Understanding yourself | How motivated am I to manage? 18CASE APPLICATION | Managing to keep it simple 19Endnotes 20

History module A brief history of management theory 22

Early management 22Behavioural approach 23Classical approaches 24Quantitative approach 25Contemporary approaches 25How to choose? 26Endnotes 27

Chapter 2 The managerial environment 28How do changing environments affect organisations? 30

FROM THE PAST TO THE PRESENT 31

A01_ROBB4015_02_LT_A01.indd 6 20/06/13 9:04 AM

CONTENTS vii

What is the external environment of an organisation? 32 What is the general environment of an organisation? 32

MANAGING DIVERSITY | The paradox of diversity 34TECHNOLOGY AND THE MANAGER’S JOB | Changing and improving the way managers manage 36

What is the specific environment of an organisation? 39MANAGING FOR SUSTAINABILITY 40RIGHT OR WRONG? 41

What is an organisation’s culture and how does it help organisations to deal with their environments? 43 How does an organisation’s culture help it deal with its environments? 43

DEVELOPING YOUR Cultural Awareness SKILL 45 How can managers use organisational culture to change the way an organisation deals with its

environment? 46Review and applications 49Chapter summary 49Understanding the chapter 49Understanding management practice 50Understanding yourself | Am I well suited for a career as a global manager? 50CASE APPLICATION | Healing the community 51Endnotes 52

Ethics and social responsibility module Managing socially responsible and ethical behaviour 56

What is social responsibility? 56How do organisations define their social responsibilities? 56Should organisations be socially responsible? 57How can managers identify the ethical thing to do? 58How does cultural diversity influence ethical behaviour? 59What factors influence ethical and unethical behaviour? 59 How can managers encourage ethical behaviour? 61

DEVELOPING YOUR Ethics SKILL 63Endnotes 63

Part 2 Planning 65Chapter 3 Foundations of decision making 66

How do managers make decisions? 68 What defines a decision problem? 68 What is relevant in the decision-making process? 69 How does the decision maker weight the criteria and analyse alternatives? 69 What determines the best choice? 71 What happens in decision implementation? 71 What is the last step in the decision process? 71

MANAGING FOR SUSTAINABILITY 71 What common errors are committed in the decision-making process? 71What are the three approaches managers can use to make decisions? 73 What is the rational model of decision making? 73

FROM THE PAST TO THE PRESENT 74 What is bounded rationality? 74

TECHNOLOGY AND THE MANAGER’S JOB | Making better decisions with technology 75 What role does intuition play in managerial decision making? 75

A01_ROBB4015_02_LT_A01.indd 7 20/06/13 9:04 AM

viii

What types of decisions and decision-making conditions do managers face? 76 How do problems differ? 76 How does a manager make programmed decisions? 76 How do non-programmed decisions differ from programmed decisions? 77 How are problems, types of decisions and organisational level integrated? 78 What decision-making conditions do managers face? 78

MANAGING DIVERSITY | The value of diversity in decision making 79How do groups make decisions? 79 What are the advantages of group decision making? 79 What are the disadvantages of group decision making? 80 When are groups most effective? 80 How can you improve group decision making? 81

RIGHT OR WRONG? 81What contemporary decision-making issues do managers face? 82 How does national culture affect managers’ decision making? 82 Why is creativity important in decision making? 83

DEVELOPING YOUR Creativity SKILL 84Review and applications 85Chapter summary 85Understanding the chapter 85Understanding management practice 86Understanding yourself | Am I a deliberate decision maker? 86CASE APPLICATION | Deciding who succeeds 87Endnotes 88

Chapter 4 Foundations of planning 92What is planning and why do managers need to plan? 94 Why should managers formally plan? 94 What are some criticisms of formal planning? 95 Does formal planning improve organisational performance? 95

MANAGING FOR SUSTAINABILITY 96What do managers need to know about strategic management? 96 What is strategic management? 96 Why is strategic management important? 96 What are the steps in the strategic management process? 96

TECHNOLOGY AND THE MANAGER’S JOB | Technology’s role in company strategy 100How do managers set goals and develop plans? 100 What types of goals do organisations have and how do they set those goals? 100

FROM THE PAST TO THE PRESENT 102 What types of plans do managers use and how do they develop those plans? 103

DEVELOPING YOUR Business Planning SKILL 104 What are some popular planning tools? 107

RIGHT OR WRONG? 107What contemporary planning issues do managers face? 110 How can managers plan effectively in dynamic environments? 110 How can managers use environmental scanning? 111Review and applications 112Chapter summary 112Understanding the chapter 112Understanding management practice 113Understanding yourself | What are my course performance goals? 113CASE APPLICATION | Planning a comeback 114Endnotes 115

A01_ROBB4015_02_LT_A01.indd 8 20/06/13 9:04 AM

CONTENTS ix

Entrepreneurship module Managing entrepreneurial ventures 117

What is entrepreneurship? 117Who’s starting entrepreneurial ventures? 118

UNDERSTANDING YOURSELF | AM I LIKELY TO BECOME AN ENTREPRENEUR? 119How do entrepreneurs create entrepreneurial ventures? 120What planning do entrepreneurs need to do? 120What issues are there in organising an entrepreneurial venture? 120 What are the legal forms of organisation for entrepreneurial ventures? 120 What type of organisational structure should entrepreneurial ventures use? 121 What HRM issues must entrepreneurs deal with? 122What issues do entrepreneurs face in leading an entrepreneurial venture? 122 How can entrepreneurs motivate employees? 122 How can entrepreneurs be leaders? 122What controlling issues do entrepreneurs face? 123 How is growth managed? 123 How are downturns managed? 123 What’s involved with exiting the venture? 124 Why is it important to think about managing personal challenges as an entrepreneur? 124Endnotes 125

Part 3 Organising 127Chapter 5 Organisational structure and design 128

What are the six key elements in organisational design? 130 What is work specialisation? 130 What is departmentalisation? 130 What are authority and responsibility? 132 What is span of control? 135

DEVELOPING YOUR Power Base SKILL 136 How do centralisation and decentralisation differ? 136 What is formalisation? 137

RIGHT OR WRONG? 137How is a mechanistic organisation different from an organic organisation? 138What contingency variables affect structural choice? 139 How does strategy affect structure? 139 How does size affect structure? 139 How does culture influence structure? 139 How does technology affect structure? 139

FROM THE PAST TO THE PRESENT 140 How does the environment affect structure? 140What are some common organisational designs? 140 What traditional organisational designs can managers use? 140 What contemporary organisational designs can managers use? 143

MANAGING FOR SUSTAINABILITY 145What are today’s organisational design challenges? 145 How can managers design efficient and effective work arrangements? 146

TECHNOLOGY AND THE MANAGER’S JOB | Technology’s impact on organisational design 146 How do global differences affect organisational structure? 147 How do you build a learning organisation? 148Review and applications 150Chapter summary 150Understanding the chapter 150

A01_ROBB4015_02_LT_A01.indd 9 20/06/13 9:04 AM

x

Understanding management practice 151Understanding yourself | What type of organisation structure do I prefer? 151CASE APPLICATION | Stores and more 152Endnotes 153

Chapter 6 Managing human resources 156What is the HRM process and what influences it? 158 What is the legal environment of HRM? 159 What are the primary laws affecting HRM in Australia? 159

FROM THE PAST TO THE PRESENT 160How do managers identify and select competent employees? 161 What is employment planning? 161 How does a manager reduce their workforce? 162 How do organisations recruit employees? 163 How do managers select job applicants? 163 How can you make sure new employees stay? 166

DEVELOPING YOUR Interviewing SKILL 167How are employees provided with needed skills and knowledge? 168 How are new employees introduced to the organisation? 168 What is employee training? 168

MANAGING DIVERSITY | Mentoring 169TECHNOLOGY AND THE MANAGER’S JOB | HR and IT 170

How do organisations provide a safe working environment? 171RIGHT OR WRONG? 171

How do organisations retain competent, high-performing employees? 172 What is a performance management system? 172 What happens if an employee’s performance is not up to par? 173 How are employees compensated? 174

MANAGING FOR SUSTAINABILITY 175What contemporary HRM issues face managers? 175 How can managers manage downsizing? 175 How can workforce diversity be managed? 177 What is sexual harassment? 177 What is career development? 178Review and applications 179Chapter summary 179Understanding the chapter 180Understanding management practice 180Understanding yourself | How much do I know about HRM? 180CASE APPLICATION | Taking the other path 181Endnotes 182

Chapter 7 Managing change and innovation 186What is change and how do managers deal with it? 188 Why do organisations need to change? 189 Who initiates organisational change? 190 How does organisational change happen? 190

DEVELOPING YOUR Change Management SKILL 191FROM THE PAST TO THE PRESENT 192MANAGING FOR SUSTAINABILITY 193

Reasons why change fails 194 What are some techniques for overcoming barriers to organisational change? 195

A01_ROBB4015_02_LT_A01.indd 10 20/06/13 9:04 AM

CONTENTS xi

What reaction do employees have to organisational change? 196 What is stress? 196 What are the symptoms of stress? 197 What causes stress? 197 How can stress be reduced? 198

RIGHT OR WRONG? 199How can managers encourage innovation in an organisation? 200 What’s involved in innovation? 200 How can a manager foster innovation? 200Review and applications 203Chapter summary 203Understanding the chapter 204Understanding management practice 204Understanding yourself | What is my tolerance for change? 204CASE APPLICATION | Improving day-by day: continuous improvement at Heinz 206Endnotes 207

Part 4 Leading 211Chapter 8 Foundations of individual behaviour 212

What are the focus and goals of organisational behaviour? 214 What is the focus of OB? 214 What are the goals of OB? 214What role do attitudes play in job performance? 215 What are the three components of an attitude? 216 What attitudes might employees hold? 216 Do an individual’s attitude and behaviour need to be consistent? 217 What is cognitive dissonance theory? 217 How can an understanding of attitudes help managers be more effective? 218

MANAGING FOR SUSTAINABILITY 218What do managers need to know about personality? 219 Can personality predict behaviour? 219 Can personality traits predict practical work-related behaviours? 221 How do we match personalities and jobs? 222 Do personality attributes differ across cultures? 223

RIGHT OR WRONG? 223 How can an understanding of personality help managers be more effective? 224What is perception and what influences it? 224 What influences perception? 224 How do managers assess employees? 224

MANAGING DIVERSITY | All about shortcuts 227 How can an understanding of perception help managers be more effective? 227How do learning theories explain behaviour? 228 What is operant conditioning? 228

FROM THE PAST TO THE PRESENT 228 What is social learning theory? 229 How can managers shape behaviour? 229

DEVELOPING YOUR Shaping Behaviour SKILL 230 How can an understanding of learning help managers be more effective? 230What contemporary OB issues do managers face? 231 How do generational differences affect the workplace? 231 How do managers deal with bullying in the workplace? 232

A01_ROBB4015_02_LT_A01.indd 11 20/06/13 9:04 AM

xii

Review and applications 234Chapter summary 234Understanding the chapter 235Understanding management practice 235Understanding yourself | What’s my basic personality? 235CASE APPLICATION | Top of the tree 237Endnotes 238

Chapter 9 Understanding groups and managing work teams 242What is a group and what stages of development do groups go through? 244 What is a group? 244 What are the stages of group development? 244What are the major concepts of group behaviour? 246 What are roles? 246

FROM THE PAST TO THE PRESENT 246 How do norms and conformity affect group behaviour? 247

RIGHT OR WRONG? 247 What is status and why is it important? 248 Does group size affect group behaviour? 248 Are cohesive groups more effective? 248

MANAGING FOR SUSTAINABILITY 249How are groups turned into effective teams? 249 Aren’t work groups and work teams the same? 250 What makes a team effective? 250

DEVELOPING YOUR Coaching SKILL 252TECHNOLOGY AND THE MANAGER’S JOB | IT and teams 253MANAGING DIVERSITY | The challenge of managing diverse work teams 254

How can a manager shape team behaviour? 255What current issues do managers face in managing teams? 256 What’s involved with managing global teams? 256 When are teams not the answer? 257Review and applications 258Chapter summary 258Understanding the chapter 258Understanding management practice 259Understanding yourself | What’s my attitude towards working in groups? 259CASE APPLICATION | Teaming up for success 260Endnotes 261

Chapter 10 Motivating and rewarding employees 264What is motivation? 266What do the early theories of motivation say? 266 What is Maslow’s hierarchy of needs theory? 267 What is McClelland’s three-needs theory? 268 What are McGregor’s Theory X and Theory Y? 268 What is Herzberg’s two-factor theory? 268

FROM THE PAST TO THE PRESENT 270How do the contemporary theories explain motivation? 270 How does expectancy theory explain motivation? 270 What is goal-setting theory? 271 How does job design influence motivation? 273 What is equity theory? 274

A01_ROBB4015_02_LT_A01.indd 12 20/06/13 9:04 AM

CONTENTS xiii

RIGHT OR WRONG? 275 How can we integrate the contemporary motivation theories? 276What current motivation issues do managers face? 277 How does country culture affect motivation efforts? 277 How can managers motivate unique groups of workers? 278

DEVELOPING YOUR Motivating Employees SKILL 279MANAGING DIVERSITY | Developing employee potential: the bottom line of diversity 279MANAGING FOR SUSTAINABILITY 280

How can managers design appropriate rewards programs? 281 A final note on motivating and rewarding employees 282Review and applications 283Chapter summary 283Understanding the chapter 283Understanding management practice 284Understanding yourself | What are my dominant needs? 284CASE APPLICATION | Work for free? 285Endnotes 286

Chapter 11 Leadership and trust 290Who are leaders and what is leadership? 292What do early leadership theories tell us about leadership? 292 What traits do leaders have? 292 What behaviours do leaders exhibit? 292

MANAGING FOR SUSTAINABILITY 293FROM THE PAST TO THE PRESENT 295

What do the contingency theories of leadership tell us? 297 What was the first comprehensive contingency model? 297 How do followers’ willingness and ability influence leaders? 299 How participative should a leader be? 300 How do leaders help followers? 301What is leadership like today? 302 What do the three contemporary views of leadership tell us? 303 What issues do today’s leaders face? 305

TECHNOLOGY AND THE MANAGER’S JOB | Virtual leadership 306MANAGING DIVERSITY | Do men and women lead differently? 308

Why is trust the essence of leadership? 308DEVELOPING YOUR Trust-Building SKILL 309RIGHT OR WRONG? 310

A final thought regarding leadership 310Review and applications 311Chapter summary 311Understanding the chapter 312Understanding management practice 312Understanding yourself | Do others see me as trustworthy? 312CASE APPLICATION | Leading the harvest 313Endnotes 314

Chapter 12 Communication and interpersonal skills 320Why do managers need to communicate effectively? 322 How does the communication process work? 322 What barriers prevent effective communication and how can they be overcome? 325

MANAGING DIVERSITY | The communication styles of men and women 327 Are written communications more effective than verbal ones? 327 Is the grapevine an effective way to communicate? 328

A01_ROBB4015_02_LT_A01.indd 13 20/06/13 9:04 AM

xiv

FROM THE PAST TO THE PRESENT 328MANAGING FOR SUSTAINABILITY 328

How is technology affecting managerial communication? 329RIGHT OR WRONG? 330

What interpersonal skills do managers need? 331 Why are active listening skills important? 331

DEVELOPING YOUR Active Listening SKILL 332 Why are performance feedback skills important? 332 What are delegation skills? 334 What are negotiation skills? 337 How do you manage conflict? 339Review and applications 342Chapter summary 342Understanding the chapter 342Understanding management practice 343Understanding yourself | How good are my listening skills? 343CASE APPLICATION | Communicating in a bushfire 344Endnotes 345

Part 5 Controlling 349Chapter 13 Foundations of control 350

What is control and why is it important? 352 What is control? 352 Why is control important? 352What takes place as managers control? 353 What is measuring? 353 How do managers compare actual performance to planned goals? 355 What managerial action can be taken? 356

FROM THE PAST TO THE PRESENT 357What should managers control? 357 When does control take place? 358

DEVELOPING YOUR Performance Feedback SKILL 359 In what areas might managers need controls? 360

MANAGING FOR SUSTAINABILITY 362What contemporary control issues do managers confront? 362 Do controls need to be adjusted for cultural differences? 362

TECHNOLOGY AND THE MANAGER’S JOB | Monitoring employees 363 What challenges do managers face in controlling the workplace? 363

RIGHT OR WRONG? 364Review and applications 366Chapter summary 366Understanding the chapter 366Understanding management practice 367Understanding yourself | How good am I at disciplining others? 367CASE APPLICATION | In search of better controls 368Endnotes 369

Glossary 371Index 379

A01_ROBB4015_02_LT_A01.indd 14 20/06/13 9:04 AM