Principles of Business: Management: Print Purchase Includes Free Online Access

478 Pages·2017·28.006 MB·English

by  Wilson, Richard L

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Principles of Business:
Management
4919 Route 22, PO Box 56
Amenia NY 12501 SALEM
Phone: [phone] | 800-562-2139 PRESS
Fax: [phone]
www.greyhouse.com | [email protected]
www.salempress.com | [email protected]
Principles of Business:
Management

Principles of Business:
Management
Edited by
Richard Wilson, Ph.D.
The University of Tennessee at Chattanooga
SALEM PRESS
A Division of EBSCO Information Services, Inc.
Ipswich, Massachusetts
GREY HOUSE PUBLISHING
Cover photo: iStock
Copyright © 2017, by Salem Press, A Division of EBSCO Information Services, Inc., and Grey House Publishing, Inc.
All rights reserved. No part of this work may be used or reproduced in any manner whatsoever or transmitted in any
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For information contact Grey House Publishing/Salem Press, 4919 Route 22, PO Box 56, Amenia, NY 12501
Principles of Business: Management, published by Grey House Publishing, Inc., Amenia, NY, under exclusive license
from EBSCO Publishing, Inc.
∞ The paper used in these volumes conforms to the American National Standard for Permanence of Paper for Printed
Library Materials, Z39.48 1992 (R2009).
Publisher’s Cataloging-In-Publication Data
(Prepared by The Donohue Group, Inc.)
Names: Wilson, Richard L., 1944- editor.
Title: Principles of business. Management / edited by Richard Wilson,
Ph.D., the University of Tennessee at Chattanooga.
Other Titles: Management
Description: [First edition]. | Ipswich, Massachusetts : Salem Press, a
division of EBSCO Information Services, Inc. ; Amenia, NY : Grey House
Publishing, [2017] | Includes bibliographical references and index.
Identifiers: ISBN 978-1-68217-330-5 (hardcover)
Subjects: LCSH: Management.
Classification: LCC HD31.2 .P75 2017 | DDC 658--dc23
First Printing
Printed in the United States of America
Contents
Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Labor Relations & Human Resource
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Leadership & Motivation . . . . . . . . . . . . . . . . . . . . 168
Legal Environment of Business . . . . . . . . . . . . . . . 174
Behavioral Economics & Finance . . . . . . . . . . . . . . . 1 Logistics Management . . . . . . . . . . . . . . . . . . . . . . 179
Behavioral Foundations of Management . . . . . . . . . 6
Business Data Management . . . . . . . . . . . . . . . . . . .11 Management Competencies . . . . . . . . . . . . . . . . . 186
Business Impact Analysis . . . . . . . . . . . . . . . . . . . . . 18 Management Consulting . . . . . . . . . . . . . . . . . . . . 192
Business Information Systems & Technologies . . . 22 Management Information Systems . . . . . . . . . . . . 197
Business Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Management of an Insurance Enterprise . . . . . . . 204
Management of Financial Institutions . . . . . . . . . 208
Commercial Bank Management . . . . . . . . . . . . . . . 33 Management of Human Resources . . . . . . . . . . . 215
Communications in the Workplace . . . . . . . . . . . . 38 Management Science . . . . . . . . . . . . . . . . . . . . . . . 222
Comparative Management . . . . . . . . . . . . . . . . . . . 44 Managerial Leadership . . . . . . . . . . . . . . . . . . . . . 227
Conflict Management . . . . . . . . . . . . . . . . . . . . . . . 49 Managing Conflict within Organizations
Corporate Development: Mergers & through Negotiations . . . . . . . . . . . . . . . . . . . . 232
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Managing in a Turnaround Environment . . . . . . 239
Corporate Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Managing Inter-Firm Alliances . . . . . . . . . . . . . . . 245
Crisis Management . . . . . . . . . . . . . . . . . . . . . . . . . 67 Managing Pure Risks: Operation & Markets . . . . 251
Critical Thinking in the Management Managing the Process of Innovation . . . . . . . . . . 257
of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Motivation, Productivity and Change
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Multi-generational Management . . . . . . . . . . . . . 270
Decision Making Under Uncertainty . . . . . . . . . . . 87
Decision Processes: A Core Business Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
Activity Supported by Information Systems . . . . 92 Networking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Decision Support Systems . . . . . . . . . . . . . . . . . . . 100 Networks in Business . . . . . . . . . . . . . . . . . . . . . . . 285
Enterprise Resource Planning . . . . . . . . . . . . . . . 106 Operations Management . . . . . . . . . . . . . . . . . . . . 290
Enterprise Risk Management . . . . . . . . . . . . . . . . 111 Organization Design . . . . . . . . . . . . . . . . . . . . . . . 294
Executive Leadership . . . . . . . . . . . . . . . . . . . . . . .123 Organization Development . . . . . . . . . . . . . . . . . . 300
Organizational Behavior . . . . . . . . . . . . . . . . . . . . 306
Forecasting Methods for Management . . . . . . . . . 130 Organizational Consulting . . . . . . . . . . . . . . . . . . 311
Forecasting Techniques . . . . . . . . . . . . . . . . . . . . . 135 Organizational Learning . . . . . . . . . . . . . . . . . . . . 318
Gender & Management . . . . . . . . . . . . . . . . . . . . . 141 Performance Appraisal . . . . . . . . . . . . . . . . . . . . . 322
Personal Lines Insurance & Risk Management . . . 328
Human Resource Issues in High Principles of Management . . . . . . . . . . . . . . . . . . 332
Performing Organizations . . . . . . . . . . . . . . . . 148 Principles of Risk Management . . . . . . . . . . . . . . 339
Process Management for Quality . . . . . . . . . . . . . 346
Inclusive Leadership . . . . . . . . . . . . . . . . . . . . . . . 154 Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
Industrial Organization & Finance . . . . . . . . . . . . 157 Project Management . . . . . . . . . . . . . . . . . . . . . . . 360
v
Contents Principles of Business: Management
Resource Planning . . . . . . . . . . . . . . . . . . . . . . . . . 366 Team Management . . . . . . . . . . . . . . . . . . . . . . . . 396
Teams & Team Building . . . . . . . . . . . . . . . . . . . . 402
Scenario Planning . . . . . . . . . . . . . . . . . . . . . . . . . 373 Types of Business Organizations . . . . . . . . . . . . . . 408
Service Operations Management . . . . . . . . . . . . . 378
Special Topics in Management . . . . . . . . . . . . . . . 383 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .415
Statistical Principles for Problem Solving . . . . . . . 390 Subject Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . .445
vi
Publisher’s Note
Management is the second of a new six-volu me series of technological innovations in business data man-
with the title Principles of Business . The first volume, agement and supply chain management . The evo-
Principles of Business: Finance, has already appeared, lution of technology and thus, the workplace, has
and future volumes on Marketing, Entrepreneurship, allowed organizations to offer benefits such as tele-
Accounting, and International Business will be pub- commuting, job-sharing, traditional flextime, and
lished into 2018 . This resource is intended to intro- compressed work weeks . In order to remain com-
duce students and researchers to the fundamentals petitive, businesses must continue to be flexible and
of business topics using easy-to- understand language . above all else, have excellent management in place
We hope that these books will become a go-to re- for organizational sustainability .
source for interested readers seeking understanding
of these important and far-reaching business topics . Added features include numerous illustrations
and helpful diagrams of rel evant topics .
The entries in this volume are arranged in an A to
Z order, from “Behavioral Economics” to “Types of The back matter in Principles of Business: Management
Business Organizations,” making it easy to find the is another valuable resource and includes:
topic of interest . Each entry includes the following: ƒ Detailed Glossary with more than 600 terms;
ƒ An Abstract that provides a brief, concrete ƒ Subject Index .
introduction to the topic and how the entry is
organized; Salem Press extends its appreciation to all involved
ƒ An Overview that offers a clear presentation of the in the development and production of this work .
topic; The signed entries have all been written by scholars
ƒ Multiple subheads that anchor the reader to the and experts in business . Without these expert
various concepts being discussed; contribu tions, a project of this nature would not be
ƒ Suggested Reading list that relates to the entry; possible . A full list of contributor’s names and af-
ƒ A detailed Bibliography . filiations follows this Publisher’s Note . Principles of
Business: Management is available in print and as an
The book begins with an introduction to business e-book .
management that discusses, in particular, the impact
vii

Introduction
The functions and activities of management have purchasing, sales, human resource management,
remained broadly the same since modern firms first facilities management, product planning, manufac-
began engaging in commercial activities . Managers turing, and strategic planning . The activities of vir-
have always had to develop strategy, plan actions, or- tually every employee in every organization are de-
ganize functions, control processes, and lead others— pendent on business data management (Moynihan,
all in a manner that successfully drives business . What Tony 1990) .
has changed over time is how managers have viewed The ways in which information technology (IT) is
and executed these functions in response to evolving used in an organization have also changed . Over the
business conditions and new technologies . last few decades the technology that supports busi-
This volume provides an arsenal of essential busi- ness data communications has been moving away
ness management knowledge and practices . This from networks built solely with cables and wires to
knowledge is what enables managers and executives wireless systems . Cell phones provide access to e-mail,
to function effectively in a complex world of change . apps, web pages, and text messages . Laptops and tab-
These management practices provide managers and lets connect to the Internet from almost anywhere in
executives with proven means to transform man- the world and can be used in the same way, for the
agement knowledge into action steps and initiatives same work, as a desktop computer connected to an
that help organizations function more smoothly and office network with a cable .
achieve and maintain long term sustainability . The Implementation of IT-based supply chain manage-
ability of managers and executives to guide their ment systems has been shown to have a positive effect
organization is especially critical in turbulent times, on procurement of materials for production as well
such as the current business climate that many busi- as on distribution, marketing, and sales after produc-
nesses find themselves in . tion (Richardson 2006) . The integration associated
Entrepreneurs who shun traditional business ca- with these processes is achieved through a variety of
reers to pursue their unique and creative ideas, with initiatives that may require expertise spanning the
little regard for formalized knowledge, may find that business process domain, partnership context, IT,
they can take their ideas only so far before the kinds and data communications (Rai, Patnayakuni and
of management knowledge and practices described Seth 2006) .
in this work are needed to move the enterprise for- Information systems must be effectively managed
ward . Investors and venture capitalists may be at- to assure that business data processing is performed
tracted to an innovative idea, but they understand the correctly and that the outcomes of data processing
need to adequately manage business functions and operations (reports, records, analysis, etc .) are ac-
operations in order to achieve long-term growth of a curate and reliable . During the last two decades
new company . Many such investors, in fact, implant the importance of information system (IS) controls
seasoned managers into a start up in which they have has grown . What might have begun as a process for
invested . It’s not unusual for the original founders of maintaining the internal integrity of business data
a start up to be relegated to symbolic roles in their processing can now be used to help assure compli-
company as more experienced managers take over . ance with various complex laws regarding the accu-
The bottom line is that there is no escaping from the racy of corporate financial data or the protection of
study of management knowledge and practices if a data regarding individuals . An information systems
business is to succeed . audit often include tests of transactions and outputs
in order to provide reasonable assurance that secu-
The Impact of Technology on Business rity standards and controls are properly designed and
Management implemented (ISACA 2001) .
Business data management has become a core activity Because firms are so thoroughly dependent on
for all businesses, supporting a wide array of activi- business data management and the technologies that
ties that include financial management, accounting, support data management, contingency planning
ix