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[NOT SPECIFIED]. Not for Distribution McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Course Management McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. http://create.mcgraw-hill.com Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw-Hill Create text may include materials submitted to McGraw-Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. Instructors retain copyright of these additional materials. ISBN-10: 1121289673 ISBN-13: 9781121289673 McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Contents Foundations of Management 1 1. Managing 3 2. Appendix A: The Evolution of Management 38 3. The External Environment and Organizational Culture 48 4. Managerial Decision Making 86 iii McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Credits Foundations of Management 1 1. Managing: Chapter 1 from Management: Leading & Collaborating in a Competitive World, Ninth Edition by Bateman, Snell, 2011 3 2. Appendix A: The Evolution of Management: Chapter from Management: Leading & Collaborating in a Competitive World, Ninth Edition by Bateman, Snell, 2011 38 3. The External Environment and Organizational Culture: Chapter 2 from Management: Leading & Collaborating in a Competitive World, Ninth Edition by Bateman, Snell, 2011 48 4. Managerial Decision Making: Chapter 3 from Management: Leading & Collaborating in a Competitive World, Ninth Edition by Bateman, Snell, 2011 86 iv McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. 1 Foundations of Management McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Bateman−Snell: I. Foundations of 1. Managing © The McGraw−Hill Management: Leading & Collaborating in a Competitive World, Ninth Edition Management: Leading & Management Companies, 2011 3 Collaborating in a Competitive World, Ninth Edition Managing Chapter 1 1 Foundations of Management • Managing • The External Environment and Organizational Culture • Managerial Decision Making Planning: Delivering Strategic Value • Planning and Strategic Management • Ethics and Corporate Responsibility • International Management • Entrepreneurship Strategy Implementation Organizing: Building Leading: Controlling: a Dynamic Organization Mobilizing People Learning and Changing • Organization Structure • Leadership • Managerial Control • Organizational Agility • Motivating for Performance • Managing Technology and • Human Resources • Teamwork Innovation Management • Communicating • Creating and Managing • Managing the Diverse Change Workforce McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Bateman−Snell:Management I. Foundations of 1. Managing © The McGraw−Hill 4 Management: Leading & Management Companies, 2011 Collaborating in a Competitive World, Ninth Edition PART ONE FOUNDATIONS OF MANAGEMENT chapter 1 Managing Management means, in the last analysis, the substitution of thought for brawn and muscle, of knowledge for folklore and tradition, and of cooperation for force. “ — Peter Drucker ” LEARNING OBJECTIVES CHAPTER OUTLINE After studying Chapter 1, you will be Managing in the New Competitive able to: Landscape Globalization LO 1 Summarize the major challenges of Technological Change managing in the new competitive Knowledge Management landscape. p. 4 Collaboration across “Boundaries” LO 2 Describe the sources of competitive Managing for Competitive Advantage advantage for a company. p. 9 Innovation Quality LO 3 Explain how the functions of Service management are evolving in today’s Speed business environment. p. 14 Cost Competitiveness Delivering All Five LO 4 Compare how the nature of management varies at different The Functions of Management organizational levels. p. 18 Planning: Delivering Strategic Value Organizing: Building a Dynamic Organization LO 5 Define the skills you need to be an Leading: Mobilizing People effective manager. p. 20 Controlling: Learning and Changing Performing All Four Management Functions LO 6 Understand the principles that will help you manage your career. p. 22 Management Levels and Skills Top-Level Managers Middle-Level Managers Frontline Managers Working Leaders with Broad Responsibilities Management Skills You and Your Career Be Both a Specialist and a Generalist Be Self-Reliant Be Connected Actively Manage Your Relationship with Your Organization Survive and Thrive McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Bateman−Snell: I. Foundations of 1. Managing © The McGraw−Hill Management: Leading & Collaborating in a Competitive World, Ninth Edition Management: Leading & Management Companies, 2011 5 Collaborating in a Competitive World, Ninth Edition Management Close-Up CAN ELON MUSK KEEP TESLA MOTORS RUNNING? A small player in the struggling global auto market, future for electric cars. But the two often disagreed California-based start-up Tesla Motors is trying to about how to move the company forward. Costs and revolutionize its industry. Headed by chief executive conflicts escalated until 2007, when the board of direc- Elon Musk, Tesla has an ambitious vision: to mass pro- tors ousted Eberhard. duce electric cars that end With Tesla at a turning Americans’ dependence on point, Musk helped the com- fossil fuels and cut greenhouse To be effective, a manager is often pany regroup, introducing its gas emissions. The South compelled to create change. But first model, the all-electric African–born Musk, who holds bringing about change is hard, especially Roadster, in 2008. The two- degrees in both physics and in a difficult business environment. seat sports car goes from 0 to finance, predicts that by 2030, As you read this chapter, think about 60 miles per hour in four sec- the majority of cars made in the the challenges Elon Musk faces as his onds and hits a top speed of { company attempts to fundamentally } United States will be electric. 135 mph. Powered solely by a A bold prediction? Maybe. change the way Americans think about lithium-ion battery, the Road- But Elon Musk is a skilled man- their cars. ster operates without engine ager. By his thirties he had led noise and can travel nearly two successful Internet compa- 250 miles on a single charge. It nies: Zip2 (later sold to Compaq) and X.com (which also doesn’t emit any gases to the environment. morphed into what is now known as PayPal). In 2004 Despite its substantial $109,000 price tag, the Tesla Musk became chairman of Tesla Motors, a start-up Roadster sold out almost immediately. Today, Tesla founded the year before by CEO Martin Eberhard. Self- ships 10 of the cars each week and has a year-long wait- professed car geeks, Musk and Eberhard saw a bright ing list. 1 McGraw-Hill Create™ Review Copy for Instructor [NOT SPECIFIED]. Not for distribution. Bateman−Snell:Management I. Foundations of 1. Managing © The McGraw−Hill 6 Management: Leading & Management Companies, 2011 Collaborating in a Competitive World, Ninth Edition 4 Part One Foundations of Management Tesla Motors’ Elon Musk is arguably one of the most interesting leaders in business today. He combines strong creative skills with a keen ability to see the big picture— and he’s been remarkably successful at building organizations. Of course, not every manager or organization succeeds. A recent story of failure that shocked many Ameri- cans involved the care provided to wounded soldiers at the Walter Reed Army Medi- cal Center in Washington, D.C. Reporters investigating outpatient facilities of Walter Reed—which ranks among the nation’s top military hospitals—discovered that in some facilities, outpatients were coping with mold, roaches, rodents, and damaged walls and doors. Many outpatients, some with serious injuries and mental impair- ments, complained of paperwork problems that kept them from receiving services. Testifying before Congress, General Richard A. Cody, the Army’s vice chief of staff, admitted fundamental management problems: Our counselors and case managers are overworked, and they do not receive enough training. We do not adequately communicate necessary information. Our administrative processes are needlessly cumbersome and . take too long. Our medical holding units are not manned to the proper level, and we do not assign leaders who can ensure a proper accountability, proper discipline and well-being, . and our facilities are not maintained to the standards that we know is [sic] right. 2 Major General George W. Weightman, who lost his job as Walter Reed’s commander as a result of the scandal, acknowledged that the organization had experienced a “fail- ure of leadership.” 3 Companies, like individuals, succeed or fail for a variety of reasons. Some of these reasons are circumstantial. Most are personal and human and include the decisions managers make and the actions they take. In business, there is no replacement for effective management. Companies may fly high for a while, but they cannot do well for very long without good management. It’s the
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