Fundamentals of Management, 6th Edition
By Danny Samson, Timothy Donnet and Richard L. Daft
Contents:
Guide to the text xv
Guide to the online resources xxii
Preface xxv
About the authors xxx
Acknowledgements xxxii
PART ONE INNOVATIVE MANAGEMENT FOR A CHANGING WORLD_________ 1
CHAPTER 1 THE CHANGING WORLD OF MANAGEMENT_ __________________________ 2
1.1 WHY INNOVATIVE MANAGEMENT MATTERS____________ 6
Current challenges for managers 7
Challenges for government 7
Challenges for business 8
Challenges for the individual employee 9
1.2 MANAGERS WHO MAKE A DIFFERENCE_______________ 9
The definition of management 10
1.3 THE FOUR MANAGEMENT FUNCTIONS_ ______________ 12
Planning 12
Organising 12
Leading 13
Controlling 13
1.4 ORGANISATIONAL PERFORMANCE___________________ 14
1.5 MANAGEMENT SKILLS____________________________ 16
Conceptual skills 16
Human skills 17
Technical skill 18
When skills fail 18
1.6 MANAGEMENT TYPES_____________________________ 20
Vertical differences 20
Horizontal differences 22
1.7 WHAT IS IT LIKE TO BE A MANAGER?_ _______________ 23
Making the leap: becoming a new manager 23
1.8 MANAGERIAL ACTIVITIES__________________________ 25
Adventures in multitasking 25
Life on speed dial 27
Where does a manager find the time? 28
Manager roles 29
1.9 MANAGING IN SMALL BUSINESSES
AND NOT-FOR-PROFIT ORGANISATIONS_ _____________ 32
1.10 STATE-OF-THE-ART MANAGEMENT COMPETENCIES_ ___ 34
1.11 TURBULENT TIMES: MANAGING CRISES
AND UNEXPECTED EVENTS________________________ 36
Stay calm 36
Be visible 37
Put people before business 37
Tell the truth 37
Know when to get back to business 37
1.12 AUSTRALIA’S MANAGERS: IMPROVING
FROM A LOW BASE_______________________________ 37
STUDY TOOLS 40
Online study resources 40
◗◗ Course Mate Express for Management 40
◗◗ Search Me! Management 40
Response to the management challenge 40
◗◗ PETRONAS 40
Discussion questions 41
Ethical challenge 42
◗◗ Can management afford to look the other way? 42
Group challenge 43
◗◗ Your best and worst managers 43
Case for critical analysis 43
◗◗ SharpStyle Salons 43
On the job video case 44
◗◗ Camp Bow Wow: Innovative management for a changing world 44
APPENDIX TO CHAPTER 1 THE EVOLUTION OF MANAGEMENT THINKING___________ 48
A1.1 MANAGEMENT AND ORGANISATION_________________ 52
The things of production versus the humanity of production 52
Is social business the answer? 53
A1.2 CLASSICAL PERSPECTIVE__________________________ 54
Bureaucratic organisations 56
Administrative principles 58
A1.3 HUMANISTIC PERSPECTIVE_ _______________________ 59
Early advocates 59
The human relations movement 60
The human resources perspective 61
The behavioural sciences approach 62
A1.4 MANAGEMENT SCIENCE___________________________ 63
A1.5 RECENT HISTORICAL TRENDS_______________________ 64
Systems thinking 65
Contingency view 66
Total quality management 66
A1.6 INNOVATIVE MANAGEMENT THINKING
FOR A CHANGING WORLD__________________________ 68
Contemporary management tools 68
Managing the technology-driven workplace 70
The shifting world of e-business 70
Big data analytics 71
Knowledge management 71
Supply chain management 72
Social media programs 73
Managing the people-driven workplace 73
STUDY TOOLS 77
Online study resources 77
◗◗ CourseMate Express for Management 77
◗◗ Search Me! Management 77
Discussion questions 77
PART 1 CONTINUING CASE: INNOVATIVE
MANAGEMENT FOR A CHANGING WORLD____________ 80
PART TWO THE ENVIRONMENT OF MANAGEMENT____________________ 83
CHAPTER 2 THE ENVIRONMENT AND CORPORATE CULTURE______________________ 84
2.1 THE EXTERNAL ENVIRONMENT_ ____________________ 89
General environment 90
Task environment 97
2.2 THE ORGANISATION–ENVIRONMENT
RELATIONSHIP___________________________________102
Environmental uncertainty 103
Adapting to the environment 104
Influencing the environment 107
2.3 THE INTERNAL ENVIRONMENT – CORPORATE CULTURE__110
Symbols 112
Stories 113
Heroes 113
Slogans 113
Ceremonies 114
2.4 TYPES OF CULTURE_ ______________________________115
Adaptability culture 115
Achievement culture 117
Involvement culture 117
Consistency culture 117
2.5 SHAPING CORPORATE CULTURE FOR
INNOVATIVE RESPONSE_ __________________________118
Managing the high-performance culture 118
2.6 CULTURAL LEADERSHIP_ __________________________121
Changing and merging corporate cultures 121
STUDY TOOLS 124
Online study resources 124
◗◗ CourseMate Express for Management 124
◗◗ Search Me! Management 124
Response to the management challenge 124
◗◗ Microsoft: coping with change 124
Discussion questions 125
Ethical challenge 126
◗◗ Competitive intelligence predicament 126
Group challenge 126
◗◗ Should you go global? 126
Case for critical analysis 127
◗◗ Richmond Supply Co. 127
On the job video case 128
◗◗ Camp Bow Wow – the environment and corporate culture 128
CHAPTER CASE STUDIES
Growing a business from scratch – lavender! 99
Green power 112
McDonald’s 116
CHAPTER 3 MANAGING IN A GLOBAL ENVIRONMENT_ _________________________ 132
3.1 A BORDERLESS WORLD: GLOBALISATION,
MULTINATIONAL CORPORATIONS AND THE
INTERNATIONAL LANDSCAPE_______________________136
Globalisation 136
Developing a global mindset 138
The changing international landscape 139
Multinational corporations 140
Globalisation backlash 142
Serving the bottom of the pyramid 142
3.2 GETTING STARTED INTERNATIONALLY________________145
Exporting 145
Outsourcing 146
Licensing 147
Direct investing 147
3.3 THE INTERNATIONAL BUSINESS ENVIRONMENT_ ______148
3.4 THE ECONOMIC ENVIRONMENT_____________________150
Economic development 150
Infrastructure 150
Economic interdependence 151
Resource and product markets 152
Exchange rates 152
Inflation, interest rates and economic growth 152
3.5 THE LEGAL–POLITICAL ENVIRONMENT_ ______________153
Political risk 154
Political instability 154
Laws and regulations 155
3.6 THE SOCIOCULTURAL ENVIRONMENT_ _______________156
Social values 156
Communication differences 159
3.7 INTERNATIONAL TRADE ALLIANCES_ ________________160
GATT and the World Trade Organization 161
European Union 161
North American Free Trade
Agreement (NAFTA) 163
Association of South East
Asian Nations (ASEAN) 163
STUDY TOOLS 165
Online study resources 165
◗◗ CourseMate Express for Management 165
◗◗ Search Me! Management 165
Response to the management challenge 165
◗◗ Achieving international competitiveness 165
Discussion questions 166
Ethical challenge 166
◗◗ Quality or closing 166
Group challenge 167
◗◗ Considerations for overseas expansion 167
Case for critical analysis 167
◗◗ Shui Fabrics 167
On the job video case 168
◗◗ Black diamond equipment: Managing in a global environment 168
CHAPTER CASE STUDY
The axis of India 138
CHAPTER 4 ETHICS, SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT___ 172
4.1 WHAT IS MANAGERIAL ETHICS?_ ___________________176
Ethical management today 177
The business case for ethics
and social responsibility 178
4.2 ETHICAL DILEMMAS – WHAT WOULD YOU DO?________179
4.3 CRITERIA FOR ETHICAL DECISION MAKING____________181
Utilitarian approach 181
Individualism approach 181
Moral rights approach 182
Justice approach 182
Practical approach 182
4.4 THE INDIVIDUAL MANAGER AND ETHICAL CHOICES_______ 183
Givers versus takers 186
4.5 WHAT IS CORPORATE SOCIAL RESPONSIBILITY?_______188
Organisational stakeholders 188
4.6 THE GREEN MOVEMENT___________________________193
Sustainability and the triple bottom line 193
4.7 EVALUATING CORPORATE SOCIAL RESPONSIBILITY______ 196
4.8 MANAGING COMPANY ETHICS
AND SOCIAL RESPONSIBILITY_ _____________________198
Code of ethics 200
Ethical structures 201
Whistleblowing 202
4.9 MANAGERIAL ETHICS AND SUSTAINABLE
DEVELOPMENT IN AUSTRALIA _____________________203
Organisational sustainable development 204
The ‘why’ of sustainable development 205
The ‘what’ of sustainable development 206
The ‘when’ of sustainable development 207
STUDY TOOLS 209
Online study resources 209
◗◗ CourseMate Express for Management 209
◗◗ Search Me! Management 209
Response to the management challenge 209
◗◗ Monsanto’s ethical challenges 209
Discussion questions 210
Ethical challenge 211
◗◗ What is right? 211
Group challenge 212
◗◗ Ethics and business costs 212
Case for critical analysis 212
◗◗ Too much intelligence? 212
On the job video case 213
◗◗ Theo Chocolate: managing ethics
and social responsibility 213
CHAPTER CASE STUDIES
A leadership dilemma at Timberland 194
A crisis to milk 202
PART THREE PLANNING_ _________________________________________ 217
CHAPTER 5 ORGANISATIONAL PLANNING AND GOAL SETTING___________________ 218
5.1 GOALS, PLANS AND PERFORMANCE_________________221
Messages and values contained
in goals and plans 223
5.2 GOALS IN ORGANISATIONS_ _______________________225
Organisational mission 225
Goals and plans 226
Aligning goals with strategy maps 229
5.3 OPERATIONAL PLANNING__________________________231
Criteria for effective goals 231
Management by objectives 234
Single-use and standing plans 238
5.4 BENEFITS AND LIMITATIONS OF PLANNING___________239
5.5 PLANNING IN A TURBULENT ENVIRONMENT_ _________241
Contingency plans 241
Scenario planning 242
5.6 CRISIS PLANNING________________________________243
Pre-event 244
Response and recovery 245
Post-event 245
5.7 INNOVATIVE APPROACHES TO PLANNING_____________247
Set stretch goals for excellence 247
STUDY TOOLS 251
Online study resources 251
◗◗ CourseMate Express for Management 251
◗◗ Search Me! Management 251
Response to the management challenge 251
◗◗ Well-laid plans and their vulnerability to
external forces 251
Discussion questions 252
Ethical challenge 252
◗◗ Inspire Learning Corporation 252
Group challenge 253
◗◗ Course goal setting 253
Case for critical analysis 253
◗◗ Central City Museum 253
On the job video case 254
◗◗ Mi Ola swimwear: Managerial planning
and goal setting 254
CHAPTER CASE STUDIES
Planning and implementing the infrastructure
of the future 233
Siemens 235
CHAPTER 6 STRATEGY FORMULATION AND IMPLEMENTATION_ __________________ 258
6.1 THINKING STRATEGICALLY_________________________261
What is strategic management? 262
Purpose of strategy 262
Levels of strategy 266
6.2 THE STRATEGIC MANAGEMENT PROCESS_____________269
Strategy formulation versus implementation 272
SWOT analysis 272
6.3 FORMULATING CORPORATE-LEVEL STRATEGY__________275
The portfolio strategy 275
The BCG matrix 276
Diversification strategy 277
6.4 FORMULATING BUSINESS-LEVEL STRATEGY___________279
Porter’s competitive forces and strategies 279
6.5 FORMULATING FUNCTIONAL-LEVEL STRATEGY_________283
6.6 NEW TRENDS IN STRATEGY_ _______________________284
Innovation from within 284
Strategic partnerships 285
6.7 GLOBAL STRATEGY_ ______________________________287
Globalisation strategy 288
Multidomestic strategy 289
Transnational strategy 289
6.8 STRATEGY IMPLEMENTATION_______________________291
Implementing global strategies 293
Testing the quality of strategy 294
STUDY TOOLS 296
Online study resources 296
◗◗ CourseMate Express for Management 296
◗◗ Search Me! Management 296
Response to the management challenge 296
◗◗ Netflix: Proof that companies need to adapt, or fail 296
Discussion questions 297
Ethical challenge 298
◗◗ A great deal for whom? 298
Group challenge 298
◗◗ Developing strategy for a small business 298
Case for critical analysis 299
◗◗ Costco: a different approach 299
On the job video case 300
◗◗ Theo Chocolate: strategy formulation and execution 300
CHAPTER CASE STUDIES
MYOB 265
Apple Inc.’s strategy: much more than iPod, iPhone,
iPad and Mac 267
APPENDIX TO CHAPTER 6 MANAGERIAL DECISION MAKING_____________________ 302
A6.1 TYPES OF DECISIONS AND PROBLEMS_ ______________304
Programmed and non-programmed decisions 304
Facing uncertainty and ambiguity 305
A6.2 DECISION-MAKING MODELS_______________________308
The classical model: rational
decision making 308
How managers actually make decisions 309
The political model 311
A6.3 DECISION-MAKING STEPS_ ________________________313
Recognition of decision requirement 313
Diagnosis and analysis of causes 314
Development of alternatives 315
Selection of desired alternative 316
Implementation of chosen alternative 317
Evaluation and feedback 317
Personal decision framework 317
A6.4 WHY DO MANAGERS MAKE POOR JUDGEMENTS?______320
Innovative decision making 321
Start with brainstorming 321
Use hard evidence 322
Engage in rigorous debate 323
Avoid groupthink 324
Know when to pull the plug 324
Do a postmortem 324
STUDY TOOLS 326
Online study resources 326
◗◗ CourseMate Express for Management 326
◗◗ Search Me! Management 326
Discussion questions 326
PART 3 CONTINUING CASE: PLANNING AND
ORGANISING THE TRANSITION AT TOYOTA
AUSTRALIA ____________________________________329
PART FOUR ORGANISING________________________________________ 331
CHAPTER 7 DESIGNING ORGANISATION STRUCTURE___________________________ 334
7.1 ORGANISING THE VERTICAL STRUCTURE_____________337
Work specialisation 338
Chain of command 339
Authority, responsibility and delegation 339
Span of management 342
Centralisation and decentralisation 344
7.2 DEPARTMENTALISATION__________________________346
Vertical functional approach 347
Divisional approach 350
7.3 MATRIX APPROACH_______________________________353
How it works 353
7.4 TEAM-BASED APPROACH__________________________356
How it works 356
Virtual network approach 358
7.5 ORGANISING FOR HORIZONTAL
COORDINATION__________________________________363
The need for coordination 363
Task forces, teams and project management 365
Relational coordination 366
7.6 FACTORS SHAPING STRUCTURE_____________________367
Structure follows strategy 368
Structure fits the technology 369
STUDY TOOLS 373
Online study resources 373
◗◗ CourseMate Express for Management 373
◗◗ Search Me! Management 373
Response to the management challenge 373
◗◗ Unlocking the value of strategic alliances: Renault and Nissan 373
Discussion questions 375
Ethical challenge 375
◗◗ A matter of delegation 375
Group challenge 376
◗◗ Family business 376
Case for critical analysis 376
◗◗ Coles 376
On the job video case 377
◗◗ Honest Tea: Designing organisation structure 377
CHAPTER CASE STUDY
Strida Bicycles: a globally networked company 361
CHAPTER 8 MANAGING CHANGE AND INNOVATION____________________________ 380
8.1 INNOVATION AND THE CHANGING
WORKPLACE_ ___________________________________383
Why do people resist change? 384
Disruptive innovation 385
The ambidextrous approach 386
8.2 CHANGING THINGS: NEW PRODUCTS
AND TECHNOLOGIES______________________________387
Exploration 387
8.3 COOPERATION___________________________________392
Innovation roles 396
8.4 CHANGING PEOPLE AND CULTURE___________________399
Training and development 401
Organisation development 401
8.5 IMPLEMENTING CHANGE__________________________405
Creating a sense of urgency 406
Resistance to change 407
Use implementation tactics 408
STUDY TOOLS 413
Online study resources 413
◗◗ CourseMate Express for Management 413
◗◗ Search Me! Management 413
Response to the management challenge 413
◗◗ Reinventing Samsung 413
Discussion questions 414
Ethical challenge 415
◗◗ Crowdsourcing 415
Group challenge 416
◗◗ Are you ready to implement personal change? 416
Case for critical analysis 417
◗◗ Malard Manufacturing Company 417
On the job video case 417
◗◗ Honest Tea: Managing change and innovation 417
CHAPTER CASE STUDIES
Building a better mouse … 386
General Electric 400
A mini crisis of culture and performance 410
CHAPTER 9 MANAGING HUMAN RESOURCES_ ________________________________ 420
9.1 THE STRATEGIC ROLE OF HRM IS TO DRIVE
ORGANISATIONAL PERFORMANCE___________________423
The strategic approach 424
Building human capital to drive performance 425
9.2 THE CHANGING NATURE OF CAREERS________________427
The changing social contract 427
Innovations in HRM 428
9.3 FINDING THE RIGHT PEOPLE________________________431
Human resource planning 432
Selecting 436
9.4 DEVELOPING TALENT_____________________________441
Training and development 441
Performance appraisal 445
9.5 MAINTAINING AN EFFECTIVE WORKFORCE____________449
Compensation 449
Benefits 451
Rightsizing the organisation 451
Termination 452
STUDY TOOLS 455
Online study resources 455
◗◗ CourseMate Express for Management 455
◗◗ Search Me! Management 455
Response to the management challenge 455
◗◗ HRM as a vehicle for understanding cultural differences 455
Discussion questions 456
Ethical challenge 457
◗◗ Roles and responsibilities 457
Group challenge 458
◗◗ Management competencies 458
Case for critical analysis 458
◗◗ The right way with employees? 458
On the job video case 459
◗◗ Barcelona Restaurant Group: managing human resources 459
CHAPTER CASE STUDIES
Container Store 435
VIVO Cafe: all in the family … the business is people 448
Biotechnology companies in turbulent
environments and challenging times 453
PART FIVE LEADING_____________________________________________ 463
CHAPTER 10 LEADERSHIP__________________________________________________ 464
10.1 THE NATURE OF LEADERSHIP_______________________467
Bossless does not mean leaderless 468
10.2 CONTEMPORARY LEADERSHIP______________________469
Level 5 leadership 469
Servant leadership 471
Authentic leadership 472
Gender differences 473
10.3 FROM MANAGEMENT TO LEADERSHIP_ ______________475
Leadership traits 476
Behavioural approaches 477
The Leadership Grid 478
10.4 CONTINGENCY APPROACHES_______________________480
The situational model of leadership 480
Fiedler’s contingency theory 482
10.5 SITUATIONAL SUBSTITUTES FOR LEADERSHIP_________485
10.6 CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP_488
Charismatic leadership 488
Transformational versus transactional leadership 490
10.7 FOLLOWERSHIP__________________________________492
10.8 POWER AND INFLUENCE___________________________494
‘Hard’ position power 494
Personal ‘soft’ power 495
Other sources of power 496
Interpersonal influence tactics 497
STUDY TOOLS 500
Online study resources 500
◗◗ CourseMate Express for Management 500
◗◗ Search Me! Management 500
Response to the management challenge 500
◗◗ Leading a revitalisation 500
Discussion questions 501
Ethical challenge 502
◗◗ Does wage reform start at the top? 502
Group challenge 502
◗◗ Which leadership styles are more effective? 502
Case for critical analysis 503
◗◗ DGL International 503
On the job video case 503
◗◗ Camp Bow Wow: Leadership 503
CHAPTER CASE STUDY
News Corporation 479
CHAPTER 11 MOTIVATING EMPLOYEES_ ______________________________________ 506
11.1 INDIVIDUAL NEEDS AND MOTIVATION_______________511
Intrinsic and extrinsic rewards 511
Managers as motivators 514
Motivating in a bossless environment 514
11.2 CONTENT PERSPECTIVES ON MOTIVATION____________515
The hierarchy of needs 515
ERG theory 519
A two-factor approach to motivation 520
Acquired needs 522
11.3 PROCESS PERSPECTIVES ON MOTIVATION____________524
Goal setting 524
Equity theory 526
Expectancy theory 527
11.4 REINFORCEMENT PERSPECTIVE
ON MOTIVATION_ ________________________________530
Direct reinforcement 530
Social learning theory 532
11.5 JOB DESIGN FOR MOTIVATION______________________534
Job enrichment 534
Job characteristics model 535
11.6 INNOVATIVE IDEAS FOR MOTIVATING_ _______________537
Building a thriving workforce 538
Empowering people to meet higher needs 538
Giving meaning to work through engagement 539
Keeping staff motivated in Australia
and New Zealand 541
STUDY TOOLS 543
Online study resources 543
◗◗ CourseMate Express for Management 543
◗◗ Search Me! Management 543
Response to the management challenge 543
◗◗ Sandstrom Products: motivating employees 543
Discussion questions 544
Ethical challenge 545
◗◗ Compensation showdown 545
Group challenge 545
◗◗ Should, need, like, love 545
Case for critical analysis 546
◗◗ Lauren’s balancing act 546
On the job video case 547
◗◗ Mike Boyle Strength and Conditioning:
Motivating employees 547
CHAPTER CASE STUDIES
Managing motivation at Degussa Peroxide Ltd 510
Nintendo Wii U: coping with fierce competition
in the world’s video game market 517
Outback Steakhouse 523
CHAPTER 12 COMMUNICATION IN ORGANISATIONS____________________________ 550
12.1 COMMUNICATION IS THE MANAGER’S JOB_ __________553
What is communication? 555
A model of communication 555
12.2 COMMUNICATING AMONG PEOPLE__________________557
Open communication climate 558
Communication channels 560
Communicating to persuade
and influence others 563
Communicating with candour 564
Asking questions 566
Listening 567
Non-verbal communication 569
12.3 ORGANISATIONAL AND WORKPLACE COMMUNICATION_____570
Social media 571
Personal communication channels 572
Formal communication channels 576
Crisis communication 580
STUDY TOOLS 585
Online study resources 585
◗◗ CourseMate Express for Management 585
◗◗ Search Me! Management 585
Response to the management challenge 585
◗◗ John McFarlane: communicate to build morale 585
Discussion questions 586
Ethical challenge 587
◗◗ The voice of authority 587
Group challenge 587
◗◗ Listen like a professional 587
Case for critical analysis 588
◗◗ WA Manufacturing 588
On the job video case 589
◗◗ Intermountain Healthcare: Managing communication 589
CHAPTER CASE STUDIES
General Electric 564
Susan Williams 579
CHAPTER 13 LEADING TEAMS______________________________________________ 592
13.1 THE VALUE OF TEAMS_____________________________596
What is a team? 596
Contributions of teams 597
13.2 TYPES OF TEAMS_________________________________599
Functional teams 599
Cross-functional teams 599
Self-managed teams 600
Virtual teams 601
13.3 THE DILEMMA OF TEAMS__________________________605
13.4 MODEL OF TEAM EFFECTIVENESS_ __________________607
13.5 TEAM CHARACTERISTICS__________________________609
Size 609
Diversity 609
Member roles 610
13.6 TEAM PROCESSES________________________________612
Stages of team development 612
Team cohesiveness 614
Team norms 615
13.7 MANAGING TEAM CONFLICT_ ______________________617
Types of conflict 617
Balancing conflict and cooperation 617
Causes of conflict 618
Styles to handle conflict 618
Negotiation 620
STUDY TOOLS 623
Online study resources 623
◗◗ CourseMate Express for Management 623
◗◗ Search Me! Management 623
Response to the management challenge 623
◗◗ NEC in Mulgrave: teams that work 623
Discussion questions 624
Ethical challenge 624
◗◗ Consumer safety or team commitment? 624
Group challenge 625
◗◗ Feedback exercise 625
Case for critical analysis 625
◗◗ Are we a team? 625
On the job video case 626
◗◗ Tough Mudder: Leading teams 626
PART 5 CONTINUING CASE: TOYOTA’S
BEHAVIOUR AND TEAMWORK_____________________629
CHAPTER CASE STUDIES
The team’s the thing 596
The Aconex team in Melbourne 604
Espresso 611
PART SIX CONTROLLING_ ______________________________________ 631
CHAPTER 14 MANAGERIAL AND QUALITY CONTROL_____________________________ 634
14.1 THE MEANING OF CONTROL________________________637
14.2 FEEDBACK CONTROL MODEL_ ______________________638
Steps of feedback control 639
The balanced scorecard 642
14.3 BUDGETARY CONTROL____________________________644
Expense budget 645
Revenue budget 645
Cash budget 645
Capital budget 646
Zero-based budget 646
19.4 FINANCIAL CONTROL_ ____________________________647
Financial statements 647
Financial analysis: interpreting the numbers 650
14.5 THE CHANGING PHILOSOPHY
OF CONTROL_ ___________________________________652
Hierarchical versus decentralised approaches 652
Open-book management 655
14.6 TOTAL QUALITY MANAGEMENT (TQM)_______________657
TQM techniques 658
TQM success factors 661
14.7 TRENDS IN QUALITY AND FINANCIAL
CONTROL_______________________________________663
International quality standards 663
Corporate governance 663
14.8 QUALITIES OF EFFECTIVE CONTROL
SYSTEMS_______________________________________665
STUDY TOOLS 667
Online study resources 667
◗◗ CourseMate Express for management 667
◗◗ Search Me! Management 667
Response to the management challenge 667
◗◗ Controlling an empire at Dell 667
Discussion questions 668
Ethical challenge 669
◗◗ The wages of sin? 669
Group challenge 670
◗◗ Create a group control system 670
Case for critical analysis 670
◗◗ Lincoln Electric 670
On the job video case 671
◗◗ Barcelona Restaurant Group: managing quality
and performance 671
CHAPTER CASE STUDIES
Semco’s open-book policy 656
A lesson in quality from China 658
The honeybee style 660
CAPSTONE CHAPTER MAKING EFFECTIVE MANAGEMENT HAPPEN________________ 674
C.1 FUNDAMENTAL PRACTICES COMMON TO WINNING
ORGANISATIONS_________________________________678
Leadership practices 678
People management practices 683
Customer focus practices 687
Quality management practices 688
Innovation practices 690
Knowledge management practices 691
C.2 DEEPER PRINCIPLES COMMON TO THE
WORLD’S BEST ORGANISATIONS____________________693
C.3 PUTTING IT ALL TOGETHER:
THE ORGANISATION AS A SYSTEM_ _________________696
STUDY TOOLS 699
Online study resources 699
◗◗ CourseMate Express for Management 699
◗◗ Search Me! Management 699
Discussion questions 699
Group challenge 700
◗◗ Understanding how an organisation works 700
CHAPTER CASE STUDIES
‘Heartfelt Leadership’ pays off at Toyota 681
Google (Alphabet Inc.): a great place to
search – and work 686
Values can come from Mars 696
Glossary 701
Name index 711
Subject index 716