Management Fundamentals Concepts, Applications, and Skill Development
SEVENTH EDITION
Robert N. Lussier - Springfield College
ISBN:9781506303277
Pub Date:1/6/16Price: $120 Page Count: 624
Availability Dates:
Sample Chapters Available Online: Ch. 1 & 7
Ancillaries: SAGE edge
Sample Syllabi: Yes
Course Cartridge: Yes
Vitalsource: Yes
Interactive E-book: Yes
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TABLE OF CONTENTS – SIDE BY SIDE COMPARISON
Sixth Edition / Seventh EditionPART I • THE GLOBAL MANAGEMENT
ENVIRONMENT
Chapter 1. Management and Its History 1
Why Study Management? 1
What Is a Manager’s Responsibility? 2
What Does It Take to Be a Successful
Manager? 5
Management Qualities 5
Management Skills 6
AACSB Competencies 6
Supervisory Ability 7
What Do Managers Do? 7
Management Functions 7
Management Roles 9
The Systems Relationship Among the
Management Skills, Functions,
and Roles 10
Differences Among Managers 11
The Three Levels of Management 11
Differences in Management Skills and
Functions 14
Differences in Size and Profits 14
A Brief History of Management 16
Classical Theory 16
Behavioral Theory 17
Management Science 18
Integrative Perspective 18
Comparing Theories 20
Managing the Old versus New Workplace 20
Objectives of the Book 21
Management Concepts 21
Application of Management Concepts 21
Development of Management Skills 21
Organization of the Book 22
Chapter 2. The Environment: Culture, Ethics, and
Social Responsibility 34
The Internal Environment 36
Mission, Management, and Culture 36
Resources and Structure 36
Systems Process 37
Organizational Culture 39
Organizational Culture Artifacts,
Levels, and Strengths 39
Managing, Changing, and Merging Cultures 41
Learning Organizations 42
The External Environment 42
External Environmental Factors 42
Dynamic Environments and Interactive
Management 44
Business Ethics 45
Does Ethical Behavior Pay? 47
How Personality Traits and Attitudes, Moral
Development, and the Situation
Affect Ethical Behavior 48
How People Justify Unethical Behavior 48
Simple Guides to Ethical Behavior 50
Managing Ethics 51
Social Responsibility and
Sustainability 51
Social Responsibility to Stakeholders 52
Does It Pay to Be Socially Responsible? 52
Sustainability 53
Chapter 3. Managing Diversity in a
Global Environment 60
The Global Environment 62
Classifying Businesses in the Global Village 62
Ethnocentrism Is Out and “Made in
America” Is Blurred 63
Foreign Trade 64
Trade Barriers 64
World Trade Organization (WTO) 66
Trade Agreements 66
Exchange Rates and the Balance of
Payments 67
Standard of Living and the Effects of
Foreign Trade 68
Taking a Business Global 69
Global Sourcing 69
Importing and Exporting 70
Licensing and Franchising 70
Contracting 71
Strategic Alliances and Joint Ventures 72
Direct Investment 73
Global Business Practices 73
Workplace Diversity 76
What Is Diversity? 76
Is Diversity Really Important? 77
Types of Diversity and Managing Diversity 78
Age Diversity and Management 78
Sex Diversity and Management 79
Race and Ethnicity Diversity and
Management 79
Disability Diversity and Management 81
Other Types of Diversity and Management 82
Managing Diversity 82
Global Diversity 83
Hofstede National Cultural Diversity 84
GLOBE 84
International Assignments 84
PART II • PLANNING
Chapter 4. Creative Problem Solving and
Decision Making 92
Problem Solving and Decision Making:
An Overview 94
Problem Solving and Decision Making
Interrelationships 94
Decision-Making Styles 95
Decision Making in the Global Village 96
The Decision-Making Model 96
Classify and Define the Problem or
Opportunity 97
Classify the Problem 97
Decision Making Types 99
Select the Appropriate Level of
Participation 99
Define the Problem 100
Set Objectives and Criteria 102
Generate Creative and Innovative Alternatives 103
Creativity and Innovation 103
Using Groups to Generate Creative
Alternatives 105
Decision Trees 107
Analyze Alternatives and Select the
Most Feasible 108
Quantitative Techniques 108
The Kepner-Tregoe Method 110
Cost-Benefit, Pros and Cons, and Intuition 110
Ethics and Social Responsibility
in Decision Making 112
Plan, Implement the Decision, and Control 113
Vroom’s Participative Decision-Making Model 113
Using the Participative Decision-Making Model 113
Participation Decision Styles 115
Chapter 5. Strategic and Operational
Planning 124
Strategic and Operational Planning 126
Planning Dimensions 126
Strategic versus Operational Planning and
Strategies 127
The Strategic Planning Process 128
Developing the Mission 129
Analyzing the Environment 129
Situation Analysis 129
Competitive Advantage 132
Setting Objectives 132
Writing Effective Objectives 133
Criteria for Objectives 134
Management by Objectives (MBO) 135
Corporate Strategies 136
Grand Strategy 136
Growth Strategies 137
Portfolio Analysis 139
Business Strategies 139
Adaptive Strategies 140
Competitive Strategies 141
Operational Planning 142
Functional Strategies 142
Standing Plans versus Single-Use and
Contingency Plans 143
Time Management 145
Multitasking 150
Implementing and Controlling
Strategies 151
Chapter 6. Managing Change, Innovation,
and Entrepreneurship 158
Innovation and Change 160
The Innovation and Change Interrelationship
and Risk 160
Forces for Change 160
Types of Change 161
Forms of Change 162
Managing Innovation 163
Innovative Organizational Structures and
Cultures 163
Managing Innovation During Incremental
and Discontinuous Change 165
Managing Change 166
Stages in the Change Process 166
Resistance to Change 167
How to Overcome Resistance to Change 168
A Model for Identifying and Overcoming
Resistance to Change 169
Organizational Development 170
Change Models 170
Organizational Development Interventions 172
Entrepreneurship 175
New Venture Entrepreneurs and
Intrapreneurs 175
Selecting the New Venture and Business
Planning 178
PART III • ORGANIZING
Chapter 7. Organizing and Delegating
Work 184
Organization Considerations and
Principles 186
Organizational Considerations 186
Principles of Organization 186
Authority 189
Formal and Informal Authority and Scope
and Levels of Authority 189
Centralized and Decentralized
Authority 190
Line and Staff Authority 190
Organizational Design 191
Organization Chart 192
Departmentalization 193
Multiple Departmentalization 194
Reengineering Contemporary
Organizational Designs 195
Job Design 197
Job Simplification 198
Job Expansion 199
Work Teams 199
The Job Characteristics Model 200
Organizing Yourself and Delegating 201
Setting Priorities 201
Delegating 205
Chapter 8. Managing Team Work 214
Teams and the Lessons of the Geese 216
Groups and Teams and Performance 216
Groups and Teams 217
The Group Performance Model 218
Group Structure 219
Group Types 219
Group Size 221
Group Composition 221
Group Leadership and Objectives 222
Group Process 222
Group Roles 223
Group Norms 224
Group Cohesiveness 225
Status Within the Group 226
Decision Making and Conflict Resolution 227
Stages of Group Development and
Management Styles 228
Stage 1. Forming—Autocratic
Management Style 228
Stage 2. Storming—Consultative
Management Style 229
Stage 3. Norming—Participative
Management Style 230
Stage 4. Performing—Empowerment
Management Style 230
Stage 5. Termination 230
Changes in Group Development and
Management Style 231
Developing Groups Into Teams 231
Training and Team Leadership 231
Team Rewards and Recognition 232
Managing Meetings 233
Planning Meetings 233
Conducting Meetings 235
Handling Problem Members 236
Chapter 9. Human Resources Management 248
The Human Resources Management
Process 250
The Human Resources Department 251
The Legal Environment 251
Harassment and Sexual
Harassment 254
Human Resources Planning 255
Strategic Human Resources Planning 255
Job Analysis 255
Attracting Employees 256
Recruiting 256
The Selection Process 258
Selection Interviewing 260
Developing Employees 262
Orientation 262
Training and Development 262
Performance Appraisal 265
Retaining and Terminating Employees 268
Compensation 269
Health and Safety 271
Unions and Labor Relations 272
Terminating Employees 273
Appendix: Career Management and
Networking 280
Career Management 281
Career Planning and Development 281
Getting a Job 282
Networking 285
The Importance of Networking 285
The Networking Process 285
PART 4 • LEADING
Chapter 10 Organizational Behavior:
Power, Politics, Conflict,
and Stress 292
Organizational Behavior (OB) Foundations 294
Personality 294
Perception 297
Attitudes 299
Changing OB Foundations 301
Power 302
Sources of Power 302
Types of Power and How to Increase
Your Power 302
Organizational Politics 305
Political Behavior 305
Guidelines for Developing Political Skills 306
Negotiation 308
Negotiating 308
The Negotiation Process 309
Managing Conflict 312
The Psychological Contract and Functional
and Dysfunctional Conflict 312
Conflict Management Styles 313
Conflict Resolution 316
Initiating Conflict Resolution 316
Responding to and Mediating Conflict
Resolution 318
Stress 318
Job Stress Causes and Management 319
The Stress Tug-of-War 321
Chapter 11 Motivating for High Performance 330
Motivation and Performance 332
What Is Motivation, and How
Does It Affect Performance? 332
An Overview of Three Major Classes
of Motivation Theories 334
Content Motivation Theories 334
Hierarchy of Needs Theory 335
ERG Theory 335
Two-Factor Theory 336
Acquired Needs Theory 337
Process Motivation Theories 340
Equity Theory 340
Goal-Setting Theory 341
Expectancy Theory 342
Reinforcement Theory 342
Types of Reinforcement 343
Schedules of Reinforcement 344
Combining the Motivation Process and
Motivation Theories 346
Motivating Employees With Rewards and
Recognition 346
How Each of the Motivation Theories
Uses Rewards and Recognition 347
Reward and Recognition Programs 348
Giving Praise 349
Do Motivation Theories Apply Globally? 350
Individualistic versus Collective
Cultures and Motivation 350
Chapter 12 Leading With Influence 356
Leadership and Trait Theory 358
Leadership and Trust 358
Leaders versus Managers 358
An Overview of Four Major Classes of
Leadership Theories 359
Leadership Trait Theory 360
Behavioral Leadership Theories 361
Basic Leadership Styles 361
Two-Dimensional Leadership Styles 362
The Leadership Grid® 363
Situational Leadership Theories 365
Contingency Leadership Model 365
Leadership Continuum Model 366
Path-Goal Model 367
Normative Leadership Model 369
Situational Leadership® Model 369
Comparing Leadership Models 370
Leadership Substitutes Theory 371
Contemporary Leadership Theories 371
Visionary Leaders 371
Charismatic Leaders 371
Transformational Leaders 371
Handling Complaints 372
Handling Employee Complaints 373
Handling Customer Complaints 374
Chapter 13. Communication and
Information Technology 382
Organizational Communication and
Information Technology 384
Vertical Communication 384
Horizontal Communication 384
Grapevine Communication 385
Information Technology 386
The Interpersonal Communication Process
and Communication Barriers 388
The Interpersonal Communication
Process 389
Communication Barriers 390
Message Transmission Channels 392
Oral Communication 392
Nonverbal Communication 393
Written Communication 394
Combining Channels 395
Selecting the Message Transmission
Channel 395
Sending Messages 396
Planning the Message 396
The Message-Sending Process 396
Checking Understanding:
Feedback 397
Receiving Messages 398
The Message-Receiving Process 398
Responding to Messages 400
Response Styles 400
Dealing With Emotions 403
Criticism 405
Information Systems and Networks 405
Types of Information Systems 405
Information Networks 406
PART 5 • CONTROLLING
Chapter 14. Managing Control Systems,
Finances, and People 416
Organizational and Functional Area Control
Systems 418
Organizational Systems Control 418
Functional Area/Department Control
Systems 419
Establishing Control Systems 421
The Control Systems Process 421
Control Frequency and Methods 424
Financial Controls: The Master Budgeting
Process 426
Operating Budgets 427
Capital Expenditures Budget 427
Financial Budgets and Statements 428
Personal Finance 431
Managing People 431
Coaching 431
Management by Walking Around 434
Counseling 434
Disciplining 435
Chapter 15. Operations, Quality, and
Productivity 446
Time-Based Competition and Operations 447
Classifying Operations Systems 448
Tangibility of Products 448
Level of Customer Involvement 449
Operations Flexibility 449
Resources and Technology
Management 451
Multiple Classifications 451
Designing Operations Systems 451
Product Mix and Design 452
Facility Layout 453
Facility Location and Capacity Planning 454
Managing Operations Systems and the
Supply Chain 455
Planning Schedules and Project
Management 455
Inventory Control 459
Materials Requirement Planning (MRP) 460
Supply Chain Management 461
Quality Control 462
Productivity and the Balanced Scorecard 466
Measuring and Increasing Productivity 466
The Balanced Scorecard 468
Glossary 477
Endnotes 483
Author Index 504
Subject Index 505
Company Index 515 / Part I: The Global Management
Environment
Chapter 1. Management and Its History 1
Why Study Management? 1
What Is a Manager’s Responsibility? 2
Managers and the
Organizational Resources They Manage 2
A Manager Interview 3
What Does It Take to Be a
Successful Manager? 4
Management Qualities 4
Management Skills 4
AACSB Competencies 6
What Do Managers Do? 6
Management Functions 6
Management Roles 8
The Systems Relationship
Among the Management Skills,
Functions, and Roles 9
Differences Among Managers 10
The Three Levels of Management 10
Differences in Management
Skills and Functions 12
Differences in Size and Profits 13
A Brief History of Management 14
Classical Theory 15
Behavioral Theory 16
Management Science 17
Integrative Perspective 17
Comparing Theories 19
Managing the Old Versus New
Workplace 19
Objectives of the Book 20
Management Concepts 20
Application of Management Concepts 21
Development of Management Skills 21
Organization of the Book 21
Trends and Issues in Management 21
Chapter 2. The Environment:
Culture, Ethics, and
Social Responsibility 32
The Internal Environment 33
Mission, Management, and Culture 34
Resources and Structure 35
Systems Process 35
Organizational Culture 37
Organizational Culture Artifacts,
Levels, and Strength 38
Managing and Changing Cultures 39
Learning Organizations 40
The External Environment 40
External Environmental Factors 40
Dynamic Environments and Interactive
Management 42
Business Ethics 43
Business Ethics and Justifying
Unethical Behavior 45
Factors That Influence Behavior to
Be Ethical or Unethical 46
Methods to Help Ensure Ethical Behavior 48
Guides to Ethical Behavior 48
Managing Ethics 49
Social Responsibility and Sustainability 50
Social Responsibility to Stakeholders 50
Levels of Corporate Social Responsibility 51
Sustainability 53
Trends and Issues in Management 54
Chapter Summary 55
Chapter 3. Managing Diversity
in a Global Environment 62
The Global Environment 63
Classifying Businesses in the
Global Village 64
Ethnocentrism Is Out and
“Made In America” Is Blurred 64
Managing Foreign Trade 65
Standard of Living and the Effects
of Foreign Trade 68
Managing Global Business 69
Global Managements Practices 69
Managing Different Forms of
Global Business 71
Workplace Diversityand Inclusion 74
What Are Diversityand Inclusion? 74
Are Diversity and Inclusion
Really Important? 76
Types of Diversity and Managing
Diversity 77
Age and Generational Diversity
and Management 77
Gender and Sexual Orientation
(LGBT) Diversity and Management 78
Race and Ethnicity Diversity
and Management 81
Disability and Ability Diversity
and Management 82
Religious Diversity and Management 83
Other Types of Diversity and
Management 83
Managing Diversity Through Inclusion 84
Global Diversity 86
Hofstede National Cultural Diversity 86
GLOBE 86
International Assignments 87
Trends and Issues in Management 88
Chapter Summary 90
Part II: Planning
Chapter 4. Creative Problem
Solving and Decision Making 96
Problem Solving and Decision Making:
An Overview 97
Problem-Solving and
Decision-Making Interrelationships 98
Decision-Making Styles 99
The Decision-Making Model 100
Classify and Define the Problem or
Opportunity 101
Classify the Problem 101
Select the Appropriate Level of Participation 102
Define the Problem 104
Decision-Making Types—Rational
Versus Bounded Rational Decisions 104
Set Objectives and Criteria 105
Generate Creative and Innovative
Alternatives 107
Creativity and Innovation 108
Using Groups to Generate
Creative Alternatives 110
Decision Trees 112
Analyze Alternatives and Select
the Most Feasible 113
Quantitative Techniques 113
Big Data 115
Cost-Benefit, Pros and Cons,
and Intuition 116
Bloomberg/Bloomberg/Getty Images
Bloomberg/Bloomberg/Getty Images
Plan, Implement the
Decision, and Control 117
Trends and Issues in Management 118
Chapter Summary 119
Chapter 5. Strategic and
Operational Planning 128
Strategic and Operational Planning 129
Planning Dimensions 130
Strategic Versus Operational
Planning and Strategies 131
The Strategic Planning Process 132
Developing the Mission and
Analyzing the Environment 133
The Mission 133
Analyzing the Environment 133
Competitive Advantage 136
Setting Objectives 137
Writing Effective Objectives 137
Criteria for Objectives 138
Management by Objectives (MBO) 139
Corporate-Level Strategies 140
Grand Strategy 140
Growth Strategies 141
Portfolio Analysis 143
Business-Level Strategies 144
Adaptive Strategies 145
Competitive Strategies 145
Operational-Level Planning 147
Functional Strategies 147
Standing Plans Versus Single-Use
and Contingency Plans 148
Time Management 150
Multitasking 153
Implementing and Controlling Strategies 156
Trends and Issues in Management 157
Chapter Summary 158
Chapter 6. Managing Change, Innovation,
and Entrepreneurship 164
Innovation and Change 165
The Innovation and Change
Interrelationship and Risk 166
Forces for Change 166
Types of Change 167
Forms of Change 168
Managing Innovation 170
Innovative Organizational
Structures and Cultures 170
Managing Innovation During Incremental and Discontinuous Change 171
Managing Change 172
Stages in the Change Process 173
Resistance to Change 174
How to Overcome Resistance to Change 174
A Model for Identifying and
Overcoming Resistance to Change 176
Organizational Development 176
Change Models 177
Organizational Development Interventions 179
Entrepreneurship 182
New Venture Entrepreneurs and Intrapreneurs 182
The Entrepreneurial Process 185
Trends and Issues in Management 188
Chapter Summary 189
Part III: Organizing
Chapter 7. Organizing and
Delegating Work 194
Organizational Considerations and Principles 196
Organizational Considerations
Principles of Organization 197
Authority 199
Formal and Informal Authority and
Scope and Levels of Authority 199
Centralized and Decentralized
Authority 200
Line and Staff Authority 201
Organizational Design 202
Organization Chart 202
TraditionalDepartmentalization 204
ContemporaryOrganizational Design 205
Multiple Departmentalization 205
Contemporary Organizational Issues
and Designs 206
Job Design 209
Job Simplification 209
Job Expansion 211
Work Teams 212
Organizing Yourself and Delegating 212
Setting Priorities 213
Delegating 216
Trends and Issues in Management 218
Chapter Summary 219
Chapter 8. Managing Teamwork 228
Groups and Teams and Performance 229
Groups and Teams 230
The Group Performance Model 231
Group Structure 232
Group Types 232
Group Size 234
Group Composition 235
Group Leadership and Objectives 236
Group Process 237
Group Roles 237
Group Norms 237
Group Cohesiveness 239
Status Within the Group 240
Decision Making and Conflict Resolution 240
Stages of Group Development
and Management Styles 241
Stage 1. Forming—Autocratic
Management Style 241
Stage 2. Storming—Consultative
Management Style 243
Stage 3. Norming—Participative
Management Style 243
Stage 4. Performing—Empowerment
Management Style 244
Stage 5. Termination 244
Changes in Group Development
and Management Style 244
Developing Groups Into Teams 245
Training and Team Leadership 245
Team Rewards and Recognition 246
Managing Meetings 247
Planning Meetings 247
Conducting Meetings 249
Handling Problem Members 250
Trends and Issues in Management 252
Chapter Summary 253
Chapter 9. Human Resources
Management 262
The Human Resources
Management Process 263
The Human Resources
Department 264
The Legal Environment 265
Harassment and Sexual Harassment
and Workplace Romance 267
Human Resources Planning 270
Strategic Human Resources Planning 270
Job Analysis 270
Attracting Employees 271
Recruiting 271
The Selection Process 273
Selection Interviewing 275
Developing Employees 277
Orientation 277
Training and Development 278
Performance Appraisal 280
Retaining and Separating Employees 284
Compensation 284
Health and Safety 287
Unions and Labor Relations 288
Separating Employees 289
Trends and Issues in Management 290
Chapter Summary 292
Chapter 9 Appendix: Career
Management and
Networking 298
Career Management 299
Career Planning and Development 299
Getting a Job 300
Networking 302
The Importance of Networking 302
The Networking Process 303
Appendix Summary 306
Part IV: Leading
Chapter 10. Organizational Behavior:
Power, Politics, Conflict,
and Stress 310
Organizational Behavior (OB) 311
Goals of OB 311
Thoughts and Self-Esteem 312
Personality 313
Personality Development and Careers 313
Single Traits of Personality 314
The Big Five Personality Dimensions 314
The Myers-Briggs Type
Indicator (MBTI) 317
Perception 317
The Perception and Attribution Processes 317
Bias in Perception 318
Perception Congruence 320
Attitudes 321
Attitude Formation, Behavior, and Job
Satisfaction 321
How Employee and Managerial Attitudes Affect Employee Performance 323
Shaping OB Foundations 324
Shaping Your OB Foundations 324
Shaping Your Management OB Foundations 324
Managing Diverse Employee OB Foundations 325
Organizational Power and Politics 325
The Relationship Between Organizational
Power and Politics 325
Power 326
Organizational Politics 328
Political Behavior 329
Negotiation, Conflict, and
Stress Management 332
Negotiating 332
Managing Conflict 334
Responding to and Mediating Conflict Resolution 339
Stress 339
Trends and Issues in Management 343
Chapter Summary 344
Chapter 11. Motivating for
High Performance 352
Motivation and Performance 354
What Is Motivation, and How Does It Affect Performance? 354
An Overview of Three Major
Classes of Motivation Theories 355
Content Motivation Theories 356
Hierarchy of Needs Theory 357
ERG Theory 357
Two-Factor Theory 358
Acquired Needs Theory 359
Process Motivation Theories 361
Equity Theory 362
Goal-Setting Theory 363
Expectancy Theory 364
Reinforcement Theory 366
Types of Reinforcement 366
Schedules of Reinforcement 367
Combining the Motivation Process
and Motivation Theories 368
Motivating Employees With
Rewards and Recognition 369
How Each of the Motivation Theories
Uses Rewards and Recognition 369
Reward and Recognition Programs 370
Giving Praise 372
Trends and Issues in Management 373
Chapter Summary 374
Chapter 12. Leading With Influence 380
Leadership Theories 382
Leadership and Trust 382
Leaders Versus Managers 383
An Overview of Four Major
Classifications of Leadership
Theories 385
Leadership Trait Theory 386
Traits and Personality 386
Inconclusive Findings and
Current Thinking 386
Behavioral Leadership Theories 388
Basic Leadership Styles 388
Two-Dimensional Leadership Styles 388
The Leadership Grid® 390
Situational Leadership Theories 391
Contingency Leadership Model 391
Leadership Continuum Model 393
Path-Goal Model 394
Normative Leadership Model 395
Situational Leadership® Model 396
Comparing Leadership Models 397
Leadership Substitutes Theory 398
Contemporary Leadership Theories 398
Leader-Member Exchange (LMX) Theory 398
Visionary and Charismatic Leaders 399
Transformational and TransactionalLeaders 399
Servant and Authentic Leaders 400
Trends and Issues in Management 401
Chapter Summary 403
Chapter 13. Communication and
Information Technology 408
Organizational Communication 410
Vertical Communication 410
Horizontal Communication 410
Grapevine Communication 411
Information Technology,
Systems, and Networks 412
Information Technology and Big Data 412
Types of Information Systems 415
Information Networks 416
The Interpersonal Communication
Process and Communication Barriers 416
The Interpersonal Communication Process 417
Communication Barriers 417
Message Transmission Channels 420
Oral Communication 420
Nonverbal Communication 421
Written Communication 422
Combining Channels 422
Selecting the Message
Transmission Channel 423
Sending Messages 423
Planning the Message 423
The Message-Sending Process 424
Checking Understanding:
Feedback 424
Receiving Messages 426
The Message-Receiving Process 426
Active Listening 428
Responding to Messages 428
Response Styles 428
Dealing With Emotions and
Emotional Intelligence 430
Criticism 432
Trends and Issues in Management 433
Chapter Summary 435
Part V: Controlling
Chapter 14. Managing Control Systems, Finances, and People 446
Organizational and Functional Area
Control Systems 447
Organizational Systems Control 448
Functional Area/Department
Control Systems 449
Establishing Control Systems 450
The Control Systems Process 450
Control Frequency and Methods 453
Financial Controls: The Master
Budgeting Process 456
Operating Budgets 457
Capital Expenditures Budget 458
Financial Budgets and Statements 459
Personal Finance 461
Managing People 461
Coaching 461
Management by Walking Around 464
Counseling 465
Disciplining 466
Handling Complaints 468
Trends and Issues in Management 469
Chapter Summary 471
Chapter 15. Operations,
Quality, and Productivity 480
Operations 481
Operations and Products 482
Manufacturing and Service Operations 483
Classifying Operations Systems 484
Tangibility of Products 484
Level of Customer Involvement 484
Operations Flexibility 485
Resources and Technology
Management 486
Multiple Classifications 487
Designing Operations Systems 488
Product Mix and Design 488
Facility Layout 489
Facility Location and Capacity Planning 490
Managing Operations Systems
and the Supply Chain 492
Planning Schedules and Project Management 492
Inventory Control 495
Materials Requirement Planning (MRP) 497
Supply Chain Management 498
Quality Control 499
Productivity and the
Balanced Scorecard 502
How Productivity Affects Wages
and the Standard of Living 503
Measuring Productivity and
Increasing Productivity 503
The Balanced Scorecard 505
Trends and Issues in Management 506
Chapter Summary 509
Glossary 515
Endnotes 521
Author Index 555
Company Index 557
Subject Index 577
* What’s New-bold these