Managing Organisations and People Custom Book (2e)

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PART 1 INTRODUCTION 1
1 Introduction to organisations and
management 3
Learning outcomes 3
What is an organisation? 6
Why are managers important? 8
Managers who made a difference: Ian McLeod, CEO,
Coles Group 9
Who are managers? 10
Managing workforce diversity and inclusion: Women are still underrepresented and underpaid in Australian businesses 11
What is management? 12
What do managers do? 13
Management functions 13
Management roles 14
Management skills 17
Summary of multiple perspectives on the manager’s
job 18
Is the manager’s job universal? 19
Organisational level 19
Organisational area 19
Organisational type 20
Organisational size 20
Cross-national transferability 21
Managing from a global perspective: Organisations and
managers in today’s world 22
How is the manager’s job changing? 23
Importance of customers to the manager’s job 24
Importance of innovation to the manager’s job 24
Importance of sustainability to the manager’s job 25
Managing for sustainability: Eco-efficiency and
eco-effectiveness 26
Why study management? 27
The universality of management 27
The reality of work 28
Managing yourself 28
Challenges and rewards of being a manager 29
Thinking critically about ethics: How much is an
executive worth? 30
Learning summary 31
Thinking critically about management issues 32
Becoming a manager 33
Working together: Team-based exercise 33
Ethical dilemma 33
Case application: Managing McDonald’s Australia 34
Key terms 36
Endnotes 37
Photo credits 39

PART 2 DEFINING THE
MANAGER’S TERRAIN 41
2 Managing in a global environment 43
Learning outcomes 43
The globalisation of business 46
Who owns what? 46
What is your global perspective? 49
Managing in the Asia-Pacific region: Opportunities and
challenges for fast-food companies in India 51
The risk of cross-cultural blunders 51
Thinking critically about ethics: IBM’s policy of moving jobs overseas 52
Understanding the global environment 53
Regional trading alliances 53
Global trade mechanisms 56
Managing workforce diversity and inclusion: Global challenges
in population trends 57
Doing business globally 58
Different types of international organisations 59
How organisations go international 60
Australian and New Zealand companies going
international 62
Managing in a global environment 64
The legal–political environment 64
The economic environment 65
The cultural environment 68
Global management in today’s world 69
Managing from a global perspective: Leading here is not
like leading there: The role of national culture in
effective leadership 71
Sustainability on a global scale 72
Managing for sustainability: Green up on aisle two 73
Learning summary 75
Thinking critically about management issues 76
Becoming a manager 77
Working together: Team-based exercise 77
Ethical dilemma 78
Case application: Learning to love globalisation at ‘German’ SAP 78
Key terms 80
Endnotes 80
Photo credits 83

PART 3 PLANNING 85
3 Decision making: The essence of a
manager’s job 87
Learning outcomes 87
The decision-making process 90
Step 1: Identifying a problem 91
Managing in the Asia-Pacific region: Pacific Laundry reduces
water and power usage 92
Step 2: Identifying decision criteria 93
Step 3: Allocating weights to the criteria 93
Step 4: Developing alternatives 93
Step 5: Analysing alternatives 94
Step 6: Selecting an alternative 94
Step 7: Implementing the alternative 95
Step 8: Evaluating decision effectiveness 95
The manager as decision maker 95
Managers who made a difference: Richard Goyder, CEO, Wesfarmers 96
Making decisions: Rationality, bounded rationality and intuition 97
Types of problems and decisions 100
Decision-making conditions 101
Managing for sustainability: Universities act on sustainability 102
Decision-making styles 105
Decision-making biases and errors 105
Managing workforce diversity and inclusion: The value of
diversity in decision making 107
Summing up managerial decision making 107
Thinking critically about ethics: A mistake by Google? 108
Decision making for today’s world 109
Managing from a global perspective: Cultural differences
in leaders’ decision-making styles 110
Learning summary 112
Thinking critically about management issues 113
Becoming a manager 113
Working together: Team-based exercise 114
Ethical dilemma 114
Case application: Designing for dollars 114
Key terms 116
Endnotes 116
Photo credits 117
4 Strategic management 119
Learning outcomes 119
The importance of strategic management 122
What is strategic management? 122
Why is strategic management important? 123
Managers who made a difference: Margot and Alan Spalding, Jimmy Possum Furniture 124
The strategic management process 125
Step 1: Identifying the organisation’s current mission,
goals and strategies 125
Step 2: Doing an external analysis 126
Managing for sustainability: Palm oil and sustainability 127
Step 3: Doing an internal analysis 128
Step 4: Formulating strategies 129
Step 5: Implementing strategies 129
Step 6: Evaluating results 130
Corporate strategies 130
What is corporate strategy? 130
What are the three main types of corporate strategy? 131
Thinking critically about ethics: Should ethical considerations
be part of strategy decisions? 132
How are corporate strategies managed? 133
Competitive strategies 134
The role of competitive advantage 134
Managing in the Asia-Pacific region: John Borghetti changes strategy at Virgin Blue 136
Choosing a competitive strategy 137
Functional strategies 138
Current strategic management issues 139
The need for strategic leadership 139
The need for strategic flexibility 140
New directions in organisational strategies 140
Managing from a global perspective: Managing in an
e-business world 141
Learning summary 146
Thinking critically about management issues 147
Becoming a manager 147
Working together: Team-based exercise 148
Ethical dilemma 148
Case application: Starbucks and McCafe – a David versus
Goliath battle? 148
Key terms 150
Endnotes 150
Photo credits 152

PART 4 ORGANISING 153
5 Organisational structure and design 155
Learning outcomes 155
Defining organisational structure and design 158
Work specialisation 159
Departmentalisation 159
Chain of command 161
Span of control 162
Managing in the Asia-Pacific region: Empowerment in Asia 163
Centralisation and decentralisation 164
Formalisation 165
Organisational design decisions 166
Mechanistic and organic organisations 166
Managing workforce diversity and inclusion: Glass ceiling 166
Contingency factors 168
Common organisational designs 170
Traditional organisational designs 170
Managers who made a difference: Ed Whitacre, formerly
CEO of AT&T, now CEO of General Motors 171
Contemporary organisational designs 172
Today’s organisational design challenges 176
Managing from a global perspective: Boundaryless
organisations 177
Keeping employees connected 177
Organisational design issues in relation
to sustainability 178
Thinking critically about ethics: Are organisations exploiting
‘non-employees’? 178
Building a learning organisation 179
Managing global structural issues 180
A final thought 181
Learning summary 182
Thinking critically about management issues 183
Becoming a manager 183
Working together: Team-based exercise 184
Ethical dilemma 184
Case application: The virus hunters 184
Key terms 186
Endnotes 186
Photo credits 188

6 Managers and communication 189
Learning outcomes 189
Understanding managerial communication 192
What is communication? 192
Functions of communication 193
Managers who made a difference: Steve Jobs, chairman
and CEO, Apple 193
Interpersonal communication 194
Methods of communicating interpersonally 195
Barriers to effective interpersonal communication 197
Thinking critically about ethics: Is it unethical to filter
or distort information on purpose? 198
Overcoming the barriers 200
Managing in the Asia-Pacific region: Intercultural non-verbal communication 200
Managing workforce diversity and inclusion: Political
correctness – good or bad? 203
Organisational communication 203
Formal versus informal communication 203
Direction of communication flow 204
Organisational communication networks 205
Managing for sustainability: Communication and disaster management 206
Managing from a global perspective: Office design and communication 208
Understanding information technology 209
How information technology affects managerial communication 209
How IT affects organisations 210
Communication issues in today’s organisations 210
Managing communication in an internet world 211
Managing the organisation’s knowledge resources 212
The role of communication in customer service 212
Communicating ethically 213
Learning summary 215
Thinking critically about management issues 216
Becoming a manager 216
Working together: Team-based exercise 216
Ethical dilemma 217
Case application: Delivery disaster at Domino’s Pizza 217
Key terms 218
Endnotes 218
Photo credits 220

7 Human resource management 221
Learning outcomes 221
Why is human resource management important? 224
Managing for sustainability: HR and sustainability 225
The human resource management process 226
External factors that affect the HRM process 226
The economy’s effect on HRM 226
Labour unions 227
Industrial relations laws and regulations 228
Other legislation with particular relevance for HRM 228
Demographic trends 231
Identifying and selecting competent employees 231
Human resource planning 231
Recruitment and decruitment 233
Selection 234
Providing employees with needed skills and knowledge 239
Orientation 239
Employee training 240
Retaining competent, high-performing employees 242
Employee performance management 242
Compensation and benefits 244
Career development 244
Managing in the Asia-Pacific region: New and challenging
HRM issues in China and India 246
Contemporary issues in human resource management 247
Managing downsizing 247
Managing workforce diversity and inclusion 248
Sexual harassment 250
Managing workforce diversity and inclusion: Workforce
diversity – room for everyone! 251
Thinking critically about ethics: The cost of sexual
harassment 253
Work–life balance 254
Occupational health and safety 255
Managing from a global perspective: USP is thinking outside
the box to improve safety 256
Learning summary 258
Thinking critically about management issues 259
Becoming a manager 259
Working together: Team-based exercise 260
Ethical dilemma 260
Case application: Social connections 260
Key terms 261
Endnotes 262
Photo credits 266

8 Managing change and innovation 267
Learning outcomes 267
Forces for change 270
External forces 270
Internal forces 271
Two views of the change process 272
The calm waters metaphor 272
The white-water rapids metaphor 273
Putting the two views in perspective 274
Managing from a global perspective: Nokia – faded signal 274
Managing organisational change 275
What is organisational change? 275
Types of change 275
Managing workforce diversity and inclusion: Deutsche
Telekom 279
Managing resistance to change 279
Why people resist change 279
Using force-field analysis 280
Techniques for reducing resistance 282
Managing for sustainability: Community involvement to
overcome resistance 283
Contemporary issues in managing change 284
Changing organisational cultures 284
Managing the downsized workplace 287
Handling employee stress 289
Thinking critically about ethics: Long working hours and stress – what are the costs? 291
Making change happen successfully 292
Stimulating innovation 294
Creativity versus innovation 294
Stimulating and nurturing innovation 294
Managers who made a difference: Ratan Tata, Indian
business guru 296
Change, innovation and sustainability 297
Sustainability-driven change 298
Social and environmental entrepreneurs 299
Sustainability – a profound challenge for change 301
Learning summary 303
Thinking critically about management issues 304
Becoming a manager 304
Working together: Team-based exercise 305
Ethical dilemma 305
Case application: Kodak Australasia 305
Key terms 307
Endnotes 308
Photo credits 312

PART 5 LEADING 313
9 Understanding individual behaviour 315
Learning outcomes 315
Why look at individual behaviour in organisations? 318
Focus of organisational behaviour 318
Goals of organisational behaviour 318
Important employee behaviours 319
Attitudes 320
Job satisfaction 320
Managing in the Asia-Pacific region: Chew Choon Seng,
CEO, Singapore Airlines 321
Job involvement and organisational commitment 324
Employee engagement 324
Attitudes and consistency 324
Managing for sustainability: Cognitive dissonance and
global warming 326
Attitude surveys 327
Implications for managers 328
Managing from a global perspective: Attitude survey in
the Australian Defence Force 329
Personality 330
Myers-Briggs Type Indicator (MBTI®) 330
The Big Five Model 331
Additional personality insights 332
Personality types in different national cultures 334
Emotions and emotional intelligence 334
Managers who made a difference: John Ilhan, Crazy
John’s 335
Implications for managers 336
Perception 338
Factors that influence perception 338
Shortcuts frequently used in judging others 340
Implications for managers 340
Learning 341
Operant conditioning 341
Managing workforce diversity and inclusion: The dangers
of stereotyping 342
Social learning 343
Shaping: A managerial tool 343
Implications for managers 344
Thinking critically about ethics: Is shaping behaviour a
form of manipulative control? 345
Contemporary OB issues 345
Managing generational differences in the workplace 345
Managing negative behaviour and bullying in
the workplace 347
Learning summary 349
Thinking critically about management issues 350
Becoming a manager 350
Working together: Team-based exercise 351
Ethical dilemma 351
Case application: Understanding HCLites 352
Key terms 353
Endnotes 353
Photo credits 360

10 Understanding groups and teams 361
Learning outcomes 361
Understanding groups 364
What is a group? 364
Stages of group development 364
Explaining work-group behaviour 366
External conditions imposed on the group 367
Group member resources 367
Group structure 367
Managing workforce diversity and inclusion: The challenge
of managing diverse teams 368
Thinking critically about ethics: Norms and the pressure
to conform 372
Managers who made a difference: Graham ‘Skroo’ Turner,
founder and managing director, Flight Centre 374
Group processes 375
Managing for sustainability: Teams as change agents 378
Group tasks 379
Turning groups into effective teams 380
What is a team? 380
Types of teams 381
Creating effective teams 383
Managing teams 384
Current challenges in managing teams 386
Managing global teams 386
Managing from a global perspective: Global team behind
Speedo’s success 388
Understanding social networks 389
Learning summary 390
Thinking critically about management issues 391
Becoming a manager 391
Working together: Team-based exercise 391
Ethical dilemma 392
Case application: ‘It’s a jungle out there’ 392
Key terms 393
Endnotes 394
Photo credits 398

11 Leadership 399
Learning outcomes 399
Who are leaders and what is leadership? 402
Early theories of leadership 402
Trait theories 402
Behavioural theories 403
Managing in the Asia-Pacific region: Karen Matthews,
CEO, Ella Baché 407
Contingency theories of leadership 408
The Fiedler model 408
The Hersey Situational Leadership® model 410
Path–goal theory 411
Contemporary views on leadership 413
Leader–member exchange theory 413
Transformational–transactional leadership 414
Charismatic–visionary leadership 414
Managers who made a difference: Sir Richard Branson,
founder and CEO, The Virgin Group 416
Team leadership 417
Leaders and power 418
Managing workforce diversity and inclusion: Top managers’
use of positional and personal power bases to influence the creation of an inclusive culture 419
Leadership issues in the 21st century 420
Developing trust 421
Thinking critically about ethics: Dealing with someone
with power 422
Providing ethical leadership 422
Empowering employees 423
The demise of celebrity leadership 424
Sustainability initiatives and ethical transformational leadership 425
Becoming an effective leader 427
Leadership training 427
Cross-cultural leadership 427
Managing from a global perspective: Growing leaders at 3M 428
Gender differences and leadership 429
Substitutes for leadership 431
Learning summary 432
Thinking critically about management issues 433
Becoming a manager 433
Working together: Team-based exercise 434
Ethical dilemma 434
Case application: Radical leadership 434
Key terms 435
Endnotes 436
Photo credits 442
12. Power and Politics 443
Learning outcomes 443
Managing from a global perspective: Is my workplace
political? 445
A definition of power 445
Contrasting leadership and power 446
Bases of power 446
Formal power 446
Personal power 447
Which bases of power are most effective? 447
Dependency: The key to power 447
OB in practice: The power of success in sport 448
The general dependency postulate 448
What creates dependency? 448
Power tactics 449
Sexual harassment: Unequal power in the
workplace 451
OB in practice: The cost of sexual harassment 453
Politics: Power in action 453
Definition of organisational politics 454
The reality of politics 454
Causes and consequences of political behaviour 456
Factors contributing to political behaviour 456
Myth or science?: ‘Power breeds contempt’ 457
How do people respond to organisational politics? 458
Impression management 459
Self Assessment Library: How good am I at playing politics? 460
The ethics of behaving politically 463
Thinking critically about ethics: Making excuses 464
Global implications 464
Politics perceptions 464
Preference for power tactics 465
Effectiveness of power tactics 465
Summary and implications for managers 465
Point / Counterpoint: Managing impressions is unethical 466
Thinking critically about management issues 468
Working together: Team-based exercise 468
Case application: The persuasion imperative 469
Endnotes 471
Photo credits 475

Glossary 477
Index 491