Management : an introduction

705 Pages·2011·9.36 MB·English

by  David Boddy, Steve Paton

David Boddy M David Boddy
MANAGEMENT A
MANAGEMENT
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An Introduction A
Fifth Edition
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with Steve Paton
An Introduction
E Fifth Edition
• What is management and how do ideas and theories of management apply to the real world?
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• How is the environment of management changing, and what are the impacts of recent trends?
• What skills do managers require – and how can you develop them? E with Steve Paton
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Management, An Introduction addresses these and many other questions by providing a comprehensive introduction to
the themes and functions of management. Now in its fi fth edition, this accessible and academically rigorous text brings
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the topic to life with a wide range of appealing and readily identifi able examples.

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The valuable features of this book include: n
• Case studies on a broad range of global organisations as diverse as Nokia, The Eden Project, Facebook,
Apple and many more. I
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• Critical Refl ection exercises throughout the text to encourage the application of personal experience and
critical thinking. t
• Skills Development Activities to build practical and work-based competences. r
• Key Terms highlighted in the text and defi ned both at the margin and in a full Glossary. o
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David Boddy is a Research Fellow at the School of Business and Management, University of Glasgow. He is the author of d
two other books published by Pearson Education: Managing Information Systems (2008) and Managing Projects (2002). d
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Steve Paton is Lecturer in Management at the University of Strathclyde Business School.
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MANAGEMENT
An Introduction
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David Boddy
University of Glasgow
MANAGEMENT
An Introduction
Fifth Edition
Steve Paton
With University of Strathclyde
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
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First published 1998 under the Prentice Hall Europe imprint
Second edition published 2002
Third edition published 2005
Fourth edition published 2008
Fifth edition published 2011
© Prentice Hall Europe 1998
© Pearson Education Limited 2002, 2011
The rights of David Boddy and Steve Paton to be identified as authors of this work has been
asserted by them 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 Publisher or a
licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of
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ownership rights in such trademarks, nor does the use of such trademarks imply any
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Pearson Education is not responsible for the content of third party internet sites.
ISBN: 978-0-273-73896-1
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Boddy, David.
Management : an introduction / David Boddy ; with Steve Paton. – 5th ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-273-73896-1 (pbk. : alk. paper) 1. Management. I. Paton, Steve.
II. Title.
HD31.B583 2011
658 – dc22 2010031597
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Typeset in 10.5/12.5 pt Minion by 73
Printed and bound by Rotolito Lombarda, Italy
BRIEF CONTENTS
Preface to the first edition xiii
Preface to the fifth edition xv
Guided tour xviii
Guided tour of MyManagementLab xxii
Acknowledgements xxvi
PART 1 AN INTRODUCTION TO MANAGEMENT
3
1 MANAGING IN ORGANISATIONS 4
2 MODELS OF MANAGEMENT 34
Part 1 case: Innocent Drinks 67
Part 1 Skills development 70
PART 2 THE ENVIRONMENT OF MANAGEMENT
75
3 ORGANISATION CULTURES AND CONTEXTS 76
4 MANAGING INTERNATIONALLY 104
5 CORPORATE RESPONSIBILITY 134
Part 2 case: BP 160
Part 2 Skills development 163
PART 3 PLANNING
167
6 PLANNING 168
7 DECISION MAKING 192
8 MANAGING STRATEGY 224
9 MANAGING MARKETING 254
Part 3 case: The Virgin Group 284
Part 3 Skills development 287
PART 4 ORGANISING
291
10 ORGANISATION STRUCTURE 292
11 HUMAN RESOURCE MANAGEMENT 326
12 INFORMATION SYSTEMS AND E-BUSINESS 350
13 MANAGING CHANGE AND INNOVATION 380
Part 4 case: The Royal Bank of Scotland 410
Part 4 Skills development 413
vi BRIEF CONTENTS
PART 5 LEADING
417
14 INFLUENCE AND POWER 418
15 MOTIVATION 448
16 COMMUNICATION 482
17 TEAMS 512
Part 5 case: W.L. Gore & Associates in Europe 540
Part 5 Skills development 544
PART 6 CONTROLLING
549
18 MANAGING OPERATIONS AND QUALITY 550
19 PERFORMANCE MEASUREMENT AND CONTROL 578
20 FINANCE AND BUDGETARY CONTROL 602
Part 6 case: Tesco 624
Part 6 Skills development 627
Glossary 629
References 639
Index 655
CONTENTS
Preface to the first edition xiii Concluding critical reflection 65
Preface to the fifth edition xv Further reading 65
Guided tour xviii Weblinks 66
Guided tour of MyManagementLab xxii
Acknowledgements xxvi Part 1 Case: Innocent Drinks 67
Part 1Skills development 70
PART 1
PART 2
AN INTRODUCTION
THE ENVIRONMENT
TO MANAGEMENT
OF MANAGEMENT
CHAPTER 1
MANAGING IN ORGANISATIONS 4 CHAPTER 3
Case study: Ryanair 5 ORGANISATION CULTURES AND CONTEXTS 76
1.1 Introduction 6 Case study: Nokia 77
1.2 Managing to add value to resources 7 3.1 Introduction 78
1.3 Meanings of management 10 3.2 Cultures and their components 79
1.4 Specialisation between areas of management 11 3.3 Types of culture 82
1.5 Influencing through the process of managing 14 3.4 The competitive environment – Porter’s
1.6 Influencing through the tasks of managing 19 five forces 86
1.7 Influencing through shaping the context 22 3.5 The general environment – PESTEL 89
1.8 Critical thinking 26 3.6 Types of environment and stakeholders 94
1.9 Integrating themes 28 3.7 Corporate governance 97
Summary 30 3.8 Integrating themes 98
Review questions 31 Summary 100
Concluding critical reflection 32 Review questions 101
Further reading 32 Concluding critical reflection 101
Weblinks 33 Further reading 102
Weblinks 102
CHAPTER 2
MODELS OF MANAGEMENT 34 CHAPTER 4
Case study: Robert Owen – an early MANAGING INTERNATIONALLY 104
management innovator 35 Case study: Starbucks 105
2.1 Introduction 36 4.1 Introduction 106
2.2 Why study models of management? 36 4.2 Ways to conduct business
2.3 The competing values framework 40 internationally 107
2.4 Rational goal models 42 4.3 The contexts of international
2.5 Internal process models 47 business – PESTEL 110
2.6 Human relations models 51 4.4 Legal context – trade agreements
2.7 Open systems models 55 and trading blocs 116
2.8 Integrating themes 62 4.5 Socio-cultural context 118
Summary 63 4.6 Hofstede’s comparison of national cultures 120
Review questions 64 4.7 Contrasting management systems 123
viii CONTENTS
4.8 Forces driving globalisation 125 CHAPTER 7
4.9 Integrating themes 128 DECISION MAKING 192
Summary 129 Case study: Ikea 193
Review questions 130 7.1 Introduction 194
Concluding critical reflection 131 7.2 Stages in making decisions 195
Further reading 131 7.3 Programmed and non-programmed decisions 201
Weblinks 132 7.4 Decision-making conditions 204
7.5 Decision-making models 206
CHAPTER 5
7.6 Biases in making decisions 212
CORPORATE RESPONSIBILITY 134 7.7 Group decision making 214
Case study: The Ford Pinto 135 7.8 Integrating themes 218
5.1 Introduction 136 Summary 219
5.2 Contrasts in business practice 137 Review questions 221
5.3 Perspectives on individual actions 139 Concluding critical reflection 221
5.4 Perspectives on corporate actions 141 Further reading 222
5.5 An ethical decision-making model 144 Weblinks 222
5.6 Stakeholders and corporate responsibility 146
5.7 Corporate responsibility and strategy 148 CHAPTER 8
5.8 Managing corporate responsibility 152 MANAGING STRATEGY 224
5.9 Integrating themes 154
Case study: HMV Group 225
Summary 156
8.1 Introduction 226
Review questions 157
8.2 Strategy – process, content and context 227
Concluding critical reflection 157
8.3 Planning, learning and political
Further reading 158
perspectives on strategy 228
Weblinks 158
8.4 How do managers develop strategies? 232
8.5 Making sense – external and internal analysis 234
Part 2 Case: BP 160
8.6 Making choices – deciding strategy
Part 2Skills development 163
at corporate level 240
8.7 Making choices – deciding strategy
at business unit level 244
8.8 Making things happen – deciding how
PART 3
to deliver strategy 246
PLANNING 8.9 Making revisions – implementing
and evaluating 248
8.10 Integrating themes 249
Summary 250
CHAPTER 6 Review questions 251
PLANNING 168 Concluding critical reflection 252
Case study: Crossrail 169 Further reading 252
6.1 Introduction 170 Weblinks 253
6.2 Purposes of planning 171
CHAPTER 9
6.3 The content of plans 172
6.4 The process of planning 176 MANAGING MARKETING 254
6.5 Gathering information 177 Case study: Manchester United FC 255
6.6 Setting goals (or objectives) 181 9.1 Introduction 256
6.7 Identifying actions and allocating resources 184 9.2 What is marketing? 257
6.8 Implementing plans and monitoring progress185 9.3 Understanding customers and markets 258
6.9 Integrating themes 186 9.4 Segments, targets and the market offer 263
Summary 189 9.5 Customer relationship management 265
Review questions 190 9.6 A marketing orientation 268
Concluding critical reflection 190 9.7 Using the marketing mix 272
Further reading 190 9.8 The product lifecycle 276
Weblinks 191 9.9 Integrating themes 279
CONTENTS ix
Summary 280 CHAPTER 12
Review questions 281 INFORMATION SYSTEMS AND E-BUSINESS 350
Concluding critical reflection 282 Case study: Google 351
Further reading 282 12.1 Introduction 352
Weblinks 283 12.2 Converging technologies bring new
ways to add value 353
Part 3 Case: The Virgin Group 284 12.3 Managing the new opportunities to
Part 3Skills development 287 add value 356
12.4 Types of information systems 360
12.5 The internet and e-business 361
12.6 IS, strategy and organisation – the big
PART 4
picture 370
ORGANISING 12.7 Integrating themes 373
Summary 375
Review questions 376
Concluding critical reflection 376
CHAPTER 10 Further reading 377
ORGANISATION STRUCTURE 292 Weblinks 377
Case study: Oticon 293 CHAPTER 13
10.1 Introduction 294
MANAGING CHANGE AND INNOVATION 380
10.2 Perspectives on strategy, structure
and performance 295 Case study: Vodafone/Ericsson 381
10.3 Designing a structure 296 13.1 Introduction 382
10.4 Grouping jobs into functions and divisions 302 13.2 Initiating change 382
10.5 Grouping jobs in matrices, teams 13.3 The interaction of context and change 386
and networks 305 13.4 Four models of change 389
13.5 Forms and sources of resistance
10.6 Co-ordinating work 307
10.7 Mechanistic and organic structures 309 to change 395
10.8 Learning organisations 317 13.6 Forms and sources of innovation 397
10.9 Integrating themes 319 13.7 The process of innovation 402
Summary 321 13.8 Integrating themes 404
Review questions 322 Summary 406
Concluding critical reflection 323 Review questions 407
Further reading 323 Concluding critical reflection 407
Weblinks 324 Further reading 408
Weblinks 408
CHAPTER 11
Part 4 Case: The Royal Bank of Scotland 410
HUMAN RESOURCE MANAGEMENT 326
Part 4Skills development 413
Case study: BMW 327
11.1 Introduction 328
11.2 Perspectives on HRM 328
11.3 What do HR managers do? 333
PART 5
11.4 Human resource planning 335
11.5 Job analysis 336 LEADING
11.6 Recruitment and selection 338
11.7 Reward management 342
11.8 Managing diversity 344
CHAPTER 14
11.9 Integrating themes 346
Summary 347 INFLUENCE AND POWER 418
Review questions 348 Case study: Apple Inc. 419
Concluding critical reflection 348 14.1 Introduction 420
Further reading 349 14.2 Purposes, targets and responses 421
Weblinks 349 14.3 Traits models 424