Management: Leading & Collaborating in a Competitive World

744 Pages·18.144 MB·English

by  Bateman T., Snell S.

E LEVENTH EDITION
Management
LEADING & COLLABORATING IN A COMPETITIVE WORLD
Thomas S. B ateman
McIntire School of Commerce
University of Virginia
Scott A. S nell
Darden Graduate School of Business
University of Virginia
MANAGEMENT: LEADING & COLLABORATING IN A COMPETITIVE WORLD,
ELEVENTH EDITION
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Library of Congress Cataloging-in-Publication Data
Bateman, Thomas S.
Management: leading & collaborating in a competitive world / Thomas S. Bateman, McIntire School
of Commerce, University of Virginia, Scott A. Snell, Darden Graduate School of Business, University
of Virginia.—ELEVENTH EDITION.
pages cm
Includes indexes.
ISBN 978-0-07-786254-1 (alk. paper)—ISBN 0-07-786254-6 (alk. paper)
1. Management. I. Snell, Scott, 1958- II. Title.
HD31.B369485 2015
658—dc23
2013037450
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a
website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill
Education does not guarantee the accuracy of the information presented at these sites.
www.mhhe.com
For my parents, Tom and Jeanine Bateman,
and Mary Jo, Lauren, T.J., and James
and
My parents, John and Clara Snell,
and Marybeth, Sara, Jack, and Emily
This page intentionally left blank
About the Authors
THOMAS S. BATEMAN SCOTT A. SNELL
Thomas S. Bateman is Scott Snell is Professor of
Bank of America Profes- Business Administration
sor and management area at the University of Vir-
coordinator in the McIn- ginia’s Darden Graduate
tire School of Com- School of Business. He
merce at the University teaches courses in lead-
of Virginia. He teaches ership, d eveloping orga-
leadership courses and is nizational capability, and
director of a new lead- human capital consult-
ership minor open to ing. His research focuses
undergraduate students on human resources and
of all majors. Prior to the mechanisms by which
joining the University of organizations generate,
Virginia, he taught orga- transfer, and integrate
nizational behavior at new knowledge for com-
the Kenan-Flagler Business School of the University of petitive advantage. He is co-author of four books: Man-
North Carolina to undergraduates, MBA students, PhD aging People and Knowledge in Professional Service Firms,
students, and practicing managers. He also taught for Management: Leading and Collaborating in a Competitive
two years in Europe as a visiting professor at the Institute World, M: Management, and Managing Human Resources.
for Management Development (IMD), one of the world’s His work has been published in a number of journals
leaders in the design and delivery of executive education. such as the Academy of Management Journal, Academy
Professor Bateman completed his doctoral program in of Management Review, Strategic Management Journal,
business administration in 1980 at Indiana University. Journal of Management, Journal of Management Studies,
Prior to receiving his doctorate, Dr. Bateman received and Human Resource Management, and he was recently
his BA from Miami University. In addition to Virginia, listed among the top 100 most-cited authors in schol-
UNC–Chapel Hill, and IMD, Dr. Bateman has taught at arly journals of management. He has served on the
Texas A&M, Tulane, and Indiana universities. boards of the Strategic Management Society’s human
Professor Bateman is an active management researcher, capital group, the Society for Human Resource Man-
writer, and consultant. He serves on the editorial boards agement Foundation, the Academy of Management’s
of the Academy of Management Review, the Academy of human resource division, the Human Resource Manage-
Management Journal, and the Asia Pacific Journal of Busi- ment Journal, the Academy of Management Journal and
ness and Management. His articles have appeared in pro- the Academy of Management Review. Professor Snell has
fessional journals such as the A cademy of Management worked with companies such as AstraZeneca, Deutsche
Journal, Academy of Management Review, Journal of Applied Telekom, Shell, and United Technologies to align
Psychology, Organizational Behavior and Human Decision strategy, capability, and investments in talent. Prior to
Processes, Journal of Management, Business Horizons, Journal joining the Darden faculty in 2007, he was professor
of Organizational Behavior, and Decision Sciences. and director of executive education at Cornell Univer-
Tom’s current consulting and research center on sity’s Center for Advanced Human Resource Studies
practical wisdom in business executives, leadership in and a professor of management in the Smeal College of
the form of problem solving at all organizational lev- Business at Pennsylvania State University. He received
els, various types of proactive behavior by employees at a B.A. in psychology from Miami University, as well as
all levels, and the successful pursuit of long-term work M.B.A. and Ph.D. degrees in business administration
goals. He works with organizations including Singapore from Michigan State University.
Airlines, the Brookings Institution, the U.S. Chamber of
Commerce, the Nature Conservancy, and LexisNexis.
v
Preface
Welcome to our 11th edition! Thank you to everyone compete with other firms for contracts, clients, and cus-
who has used and learned from previous editions. We tomers. To survive the competition, and to thrive, you
are proud to present to you our newest and most exciting must perform in ways that give you an edge over your
edition. competitors, that make the other party want to hire you,
buy from you, and do repeat business with you. You will
want them to choose you, not your competitor.
Our Goals
To survive and thrive, today’s managers have to
Our mission with this text hasn’t changed from that of think and act strategically. Today’s customers are well
our previous editions: to inform, instruct, and inspire. educated, aware of their options, and demanding of
We hope to i nform by providing descriptions of the excellence. For this reason, managers today must think
important concepts and practices of modern manage- constantly about how to build a capable workforce and
ment. We hope to i nstruct by describing how you can manage in a way that delivers the goods and services
take action on the ideas discussed. We hope to i nspire that provide the best possible value to the customer.
not only by writing in an interesting and optimistic way By this standard, managers and organizations must
but also by providing a real sense of the opportunities perform. Six essential types of performance, on which
ahead of you. Whether your goal is starting your own the organization beats, equals, or loses to the competi-
company, leading a team to greatness, building a strong tion, are c ost, quality, speed, innovation, service, and s us-
organization, delighting your customers, or generally tainability. These six performance dimensions, when
forging a positive future, we want to inspire you to take managed well, deliver value to the customer and com-
constructive actions. petitive advantage to you and your organization. We
We hope to inspire you to be both a thinker and will elaborate on all of these topics throughout the
a doer. We want you to think about the issues, think book.
about the impact of your actions, think before you act. The idea is to keep you focused on a type of bottom
But being a good thinker is not enough; you also must line to make sure you think continually about delivering
be a doer. Management is a world of action. It is a world the goods that make both you and your organization a
that requires timely and appropriate action. It is a world competitive success. This results-oriented approach is
not for the passive but for those who commit to positive unique among management textbooks.
accomplishments.
Keep applying the ideas you learn in this course, read Leading & Collaborating
about management in sources outside of this course, and
keep learning about management after you leave school Yes, business is competitive. But it’s not that simple. In
and continue your career. Make no mistake about it: fact, to think strictly in terms of competition is overly
Learning about management is a personal voyage that cynical, and such cynicism can sabotage your perfor-
will last years, an entire career. mance. The other fundamental elements in the success
equation are collaboration and leadership. People work-
Competitive Advantage ing with, rather than against, one another are essential
to competitive advantage. Put another way, you can’t do
Today’s world is competitive. Never before has the it alone—the world is too complex, and business is too
world of work been so challenging. Never before has it challenging.
been so imperative to your career that you learn the skills You need to work with your teammates. Leaders and
of management. Never before have people had so many followers need to work as collaborators more than as
opportunities and challenges with so many potential risks adversaries. Work groups throughout your organization
and rewards. need to cooperate with one another. Business and gov-
You will compete with other people for jobs, ernment, often viewed as antagonists, can work produc-
resources, and promotions. Your organization will tively together. And today more than ever, companies
vi
that traditionally were competitors engage in joint ven- • New text example of collaborating with customers
tures and find other ways to collaborate on some things via social media, focusing on L.L. Bean
even as they compete in others. Leadership is needed to
• New example of car makers expanding production in
make these collaborations happen.
the United States
How does an organization create competitive advan-
• New In Practice about Mark Little, chief technology
tage through collaboration? It’s all about the people,
officer at GE
and it derives from good leadership. Three stereotypes
of leadership are that it comes from the top of the com- • New example of the importance of people skills to
pany, that it comes from one’s immediate boss, and that management success, beginning early in one’s career
it means being decisive and issuing commands. These
• New In Practice about Anne Ackerley, chief market-
stereotypes may contain grains of truth, but the real-
ing officer of BlackRock, a money management firm
ity is much more complex. First, the person at the top
may or may not provide effective leadership—in fact,
Chapter 2
many observers believe that good leadership is far too
rare. Second, organizations need leaders at all levels, • New Management Connection about Facebook and
in every team and work unit. This includes you, begin- Mark Zuckerberg
ning early in your career, and this is why leadership is
• New Figure 2.3 on employment trends following re-
an important theme in this book. Third, leaders should
cent recessions
be capable of decisiveness and of giving commands,
but relying too much on this traditional approach isn’t • New examples throughout chapter on cola wars
enough. Great leadership is far more inspirational than and efforts, especially at PepsiCo, to include more
this and helps people both to think differently and to healthful products in the mix
work differently—including working collaboratively • New example of e-readers and eBooks as comple-
with a focus on results. mentary products
Leadership—from your boss as well as from you—
• New In Practice about the growth and challenges of
generates collaboration, which in turn creates results
using contingent workers
that are good for the company and good for the people
involved. • New In Practice about Google’s organizational
culture
As Always, Currency and
Chapter 3
Variety in the 11th Edition
• New Management Connection about decisions
It goes without saying that this textbook, in its 11th edi- related to Boeing Dreamliner
tion, remains on the cutting edge of topical coverage,
• New example of logistics decisions to help Toys “R”
updated via both current business examples and recent
Us compete with online-only retailers
management research. Chapters have been thoroughly
updated, and students are exposed to a broad array of • New Henry Ford example from T he Greatest Business
important current topics. As but two examples, we have Decisions of All Time
expanded and strengthened our coverage of sustainabil- • New text describing the significance of big data for
ity and social enterprise, topics on which we were early decision making
leaders and that we continue to care about as much as
• New In Practice about decision to launch Apple
today’s students.
Maps
We have done our very best to draw from a wide vari-
ety of subject matter, sources, and personal experiences. • New In Practice about GE and Virgin Airlines using
We continue to emphasize throughout the book themes social media to gather ideas for a “social airplane”
such as real results, ethics, cultural considerations, and • New example of Pixar’s ideas for boosting creative
leadership and collaboration. Here is just a sampling of thinking
new highlights in the 11th edition—enough to convey
• New Concluding Case: Soaring Eagle Skate
the wide variety of people, organizations, issues, and
Company
contexts represented throughout the text.
Chapter 1 Chapter 4
• New Management Connection about Jeff Bezos of • New Management Connection about Walt Disney
Amazon Company
Preface vii
• New example of New York Community Bancorp Chapter 7
• New In Practice about the Bill and Melinda Gates • New Management Connection about Popchips
Foundation
• New list of entrepreneurs in their 20s (Table 7.2)
• New example of Procter & Gamble, including
• New example of Limor Fried, founder of Adafruit
A. G. Lafley on importance of strategy
Industries
• New example of Z appos.com
• New examples of SpaceX and Bigelow Aerospace
• New example of QlikTech, including sample graphic
• New examples of itMD and Care at Hand—health
for a SWOT analysis
care technology companies receiving grants in an
• New example of General Electric area of new demand
• New In Practice about Valve’s online distribution of • New In Practice about 3Cinteractive
video games at the Steam website
• New example of Zipcar
• New example of Bloomin’ Brands
• Material on financial needs of a start-up collected
• New example of Spirit Airlines in one section, with the addition of material about
crowdfunding expansion under the JOBS Act
• New Concluding Case: Wish You Wood
of 2012
Chapter 5 • New In Practice about David Karp, founder of
Tumblr
• New Management Connection about IBM (includ-
ing Smarter Planet initiative) • New example of Neema Bahramzad and Caitlin
Bales, founders of Locabal
• New In Practice fictional example of an ethical di-
lemma at a sign company • New Concluding Case: ScrollCo
• New example applying ethical principles to decisions
Chapter 8
about fracking
• New Table 5.2 with updated current examples of • New Management Connection about General
ethical issues in business, including health care, so- Motors
cial media, and telework • New In Practice about Coca-Cola’s board of
• New In Practice about Red Frog Events directors
• New Table 5.4 of Unisys Corporation’s code of • New example of outside directors helping companies
ethics during the Great Recession
• New example of Siemens • New example of Time Warner Cable
• New example of San Francisco Federal Credit Union
Chapter 6
• New In Practice about enterprise social networks
• New Management Connection about Lenovo
• New examples (e.g., General Motors) of Chinese Chapter 9
manufacturing shifting toward more skilled manu-
• New Management Connection about General
facturing aimed at serving its growing middle class
Electric
• South America information updated to include
• Updated Walmart example
growth beyond Brazil
• New In Practice about Hewlett-Packard
• New example of IBM finding opportunities in Africa
• New example of DreamWorks Animation
• New example of Cinnabon in the Middle East and
• New In Practice about clothing customization by
Russia
eShakti and Bow & Drape
• New In Practice about Starbucks
• New example of Toyota
• New example of Panasonic
• New example of Japanese companies revisiting their
• New example of U.S. tariffs on Chinese solar panels
approach to just-in-time, following the earthquake
• New In Practice about Celtel and tsunami’s impact
• New Concluding Case: Net-Work Docs • New example of R. A. Jones & Co.
viii Preface
Chapter 10 • New example of Northeast Georgia Health System
• Updated Management Connection about Google • New In Practice about RescueTime auto-analytics
for performance feedback
• New examples of Johnson & Johnson, Colgate
• New example of Parasole restaurant group
• New example of Ford Motor Company
• New example of Plante Moran accounting firm
• Updated Figure 10.2
• New In Practice about Mars Inc.
• New In Practice about use of big data by Xerox and
Catalyst IT Services
Chapter 14
• Updated Table 10.1
• New Management Connection about Whole Foods
• New example of Verizon
Market
• Updated Figure 10.4
• New example of FLEXcon
• Updated information about CEO pay
• New example of Game Freak
• New In Practice about Royal Dutch Shell
• New example of Lockheed Martin
Chapter 11 • New example of trend toward rapid team formation
• New In Practice about Menlo Innovations
• New Management Connection about NASCAR
• New example of National Information Solutions
• New Figure 11.2 about extent of diversity initiatives
Cooperative
• Updated information on gender gap in pay
• New In Practice about Stand Up to Cancer Dream
• New information for Tables 11.1 and 11.2
Teams
• New Table 11.4
• New Concluding Case: Excel Pro Drilling Systems
• New ranking of DiversityInc’s Best Companies for
Diversity Chapter 15
• New In Practice about CVS Caremark • New Management Connection about Yahoo
• New example of Etsy • New example of Cisco
• New In Practice about Ingersoll Rand • New example of misperception when communicat-
• New Concluding Case: Niche Hotel Group ing with high-tech workers
• Updated emphasis on social media in discussion of
Chapter 12 electronic media as a communications channel
• New Management Connection about Meg Whitman • New IBM example of managing excessive e-mail
as leader of Hewlett-Packard
• New In Practice about Automattic
• New example of Maria Green at Illinois Tool Works
• New example of Exelon
• New In Practice about Barbara Corcoran as leader of
• New In Practice about communications by Kaiser
Corcoran Group
Permanente’s CEO
• New example of Jeff Bezos as leader of Amazon
• New example of listening
• New In Practice about David Novak as leader of
• New example of horizontal communication at
Yum Brands
National Public Radio
• New example of John Heer as leader of Mississippi
Health Services Chapter 16
• New Concluding Case: Breitt, Starr & Diamond • New Management Connection about Best Buy
LLC
• New example of La-Z-Boy
Chapter 13 • New example of BP
• New In Practice about McDonald’s
• New Management Connection about SAS
• New description of after-action reviews
• New example of QuikTrip convenience-store
chain • New example of Virginia Mason Medical Center
Preface ix
• New description of sustainability audits and the for yourself and for other people. What managers do
triple bottom line matters t remendously.
• Updated In Practice about the Ritz Carlton
Acknowledgments
• New example of Ethicon
This book could not have been written and published
without the valuable contributions of many individuals.
Chapter 17
Ingrid Benson and her colleagues at Words &
• New Management Connection about Tesla Motors Numbers were instrumental in creating a strong 11th
• New paragraph on disruptive innovation edition. Many thanks for their meticulous attention to
detail, ideas, and contributions. Ingrid has become a
• New example of forces for innovation in higher edu-
valued friend throughout the process; we couldn’t have
cation
done it, or had as much fun, without Ingrid.
• New In Practice about Square mobile payments Special thanks to Lily Bowles, Taylor Gray, and
• New example of Rethink Robotics Meg Nexsen for contributing their knowledge, insights,
and research to Appendix B: Managing in Our Natural
• New example of GE’s ultra-tiny electronics cooling
Environment.
system
Our reviewers over the last ten editions contrib-
• New In Practice about manufacturing transformed uted time, expertise, and terrific ideas that significantly
by 3D printers enhanced the quality of the text. The reviewers of the
• New description of innovations as competency 11th edition are
enhancing or competency destroying Laura L. Alderson
University of Memphis
• New example of acquisitions by Twitter
Daniel Arturo Cernas Ortiz
• New example of open innovation at Elmer’s P roducts University of North Texas
Claudia S. Davis
Chapter 18 Sam Houston State University
Greg Dickens
• New Management Connection about Time Warner
Sam Houston State University
• New example of resistance to a change in banking: Michael Drafke
use of universal agents with broad job descriptions College of DuPage
Judson Faurer
• New In Practice about change to open workspaces at
Metropolitan State University of Denver
American Express and other companies
Shirley Fedorovich
• New example of Envision
Embry-Riddle Aeronautical University
• New paragraph updating Kotter’s model of change Randall Fletcher
leadership for turbulent times Sinclair Community College
Rebecca M. Guidice
• New Concluding Case: EatWell Technologies
University of North Carolina-Wilmington
Dan Hallock
A Team Effort University of North Alabama
Ivan Franklin Harber, Jr.
This book is the product of a fantastic McGraw-Hill Indian River State College
team. Moreover, we wrote this book believing that we David Lynn Hoffman
are part of a team with the course instructor and with Metropolitan State University of Denver
students. The entire team is responsible for the learning Cathleen Hohner
process. College of DuPage
Our goal, and that of your instructor, is to create a Carrie Hurst
positive learning environment in which you can excel. Tennessee State University
But in the end, the raw material of this course is just Jacquelyn D. Jacobs
words. It is up to you to use them as a basis for further University of Tennessee
thinking, deep learning, and constructive action. Donald E. Kreps
What you do with the things you learn from this Kutztown University
course, and with the opportunities the future holds, Christopher McChesney
counts. As a manager, you can make a dramatic difference Indian River State College
x Preface