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Find more at http://www.downloadslide.com Management Twelfth Edition Learn | Succeed Schermerhorn Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com (Courtney Keating/iStockphoto) Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com MANAGEMENT TWELFTH EDITION JOHN R. SCHERMERHORN, JR. Find more at http://www.downloadslide.com VICE PRESIDENT & EXECUTIVE PUBLISHER George Hoffman EXECUTIVE EDITOR Lisé Johnson SENIOR PRODUCT DESIGNER Allison Morris EDITORIAL OPERATIONS MANAGER Yana Mermel CONTENT EDITOR Jennifer Manias ASSOCIATE DIRECTOR OF MARKETING Amy Scholz MARKETING MANAGER Kelly Simmons SENIOR CONTENT MANAGER Dorothy Sinclair SENIOR PRODUCTION EDITOR Erin Bascom DESIGN DIRECTOR Harry Nolan PHOTO DEPARTMENT MANAGER Hilary Newman EDITORIAL ASSISTANT Melissa Solarz SENIOR MARKETING ASSISTANT Ashley Tomeck SENIOR MEDIA SPECIALIST Elena Santa Maria PRODUCTION MANAGEMENT SERVICES Ingrao Associates COVER DESIGNER Wendy Lai PHOTO RESEARCHER Susan McLaughlin INTERIOR DESIGN Tom Nery COVER PHOTO ©Simon Ingate/iStockphoto REPEATED DESIGN ELEMENT PHOTO CREDITS (opener blue background) Viktoriya Sukhanova/iStockphoto; (opener GPS navigation screen) pagadesign/iStockphoto; (opener keyboard) tioloco/iStockphoto; (Facts for Analysis) George Diebold/Purestock/SuperStock; (Learning Check Summary, Self-Test, Recommended Reading and Management in Popular Culture) vanias/iStockphoto; (Team Exercise) RelaxFoto.de/iStockphoto; (Career Situations) sweetym/iStockphoto; (Case Study) 123render/iStockphoto This book was set in 11/14 Kepler by Aptara, Inc. and printed and bound by Courier/Kendallville. The cover was printed by Courier/Kendallville. This book is printed on acid free paper. ` Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit ourwebsite: www.wiley.com/go/citizenship. Copyright © 2013, 2011, 2010, 2008 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions. Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel. If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy. Outside of the United States, please contact your local representative. Library of Congress Cataloging in Publication Data: Schermerhorn, John R. Management / John R. Schermerhorn. — 12th ed. p. cm. ISBN 978-1-118-11392-9 (cloth) 1. Management. I. Title. HD31.S3325 2013 658—dc23 978-1-118-11392-9 (Main Book ISBN) 978-1-118-39742-8 (Binder-Ready Version ISBN) Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Find more at http://www.downloadslide.com To my sons, John Christian and Charles Porter While you played I wrote. But always, I was listening and loving you. Time has its ways, doesn’t it? Not enough, not enough, I often say. Mom loves us, cats and rainy days. Nana and Poppy loved us too. 1984 1996 2007 It’s later now. Don’t worry. Time means love shared, by you and me. Hurry home when you can. Come laughing, sons. Tell us your wonderful stories. Bookstores, museums, stories, paintings. And dreams. We travel, we laugh, joined in life. 1986 1999 2009 Think of all the fun we have. Here, there, everywhere, doing things together. Songs riding winds. Mimi, Uncle George, Uncle Nelson. Whispers and choirs. Silence speaks. While you work, I’m starting to play again. Still listening, and loving you. 1989 2002 2011 Home, now and forever, will always be wherever I can be with you. On the mountain, by Irish lakes, find beauty and peace. Fairies dance there. When I was young I never knew you would make dreams come true. 1992 2004 2013 Find more at http://www.downloadslide.com About the Author Ohio University named Dr. Schermerhorn a University Professor, the university’s highest campus-wide honor for exellence in undergraduate teaching. vi Dr. John R. Schermerhorn, Jr. is the Charles G. O’Bleness Professor of Management Emeritus in the College of Business at Ohio University, where he teaches graduate and undergraduate courses in management. Dr. Schermerhorn earned a Ph.D. in organizational behavior from Northwestern University, an MBA (with distinction) in management and international business from New York University, and a BS in business administration from the State University of New York at Buffalo. He previously taught at Tulane University, the University of Vermont, and Southern Illinois University at Carbondale, where he also served as head of the Department of Management and associate dean of the College of Business Administration. International experience adds a unique global dimension to Dr. Schermerhorn’s teaching and writing. He holds an honorary doctorate from the University of Pécs in Hungary. He was a visiting professor of management at the Chinese University of Hong Kong, on-site coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and Kohei Miura visiting professor at Chubu University in Japan. He has served as adjunct professor at the National University of Ireland at Galway and advisor to the Lao-American College in Vientiane, Laos. He presently teaches an MBA course at Università Politecnica Delle Marche in Ancona, Italy, and PhD seminars in the Knowledge and Innovation Management doctoral program at Bangkok University, Thailand. At Ohio University he has twice been Director of the Center for Southeast Asian Studies. A member of the Academy of Management, Dr. Schermerhorn was chairperson of the Management Education and Development Division. Management educators and students alike know him as author of Exploring Management 3e (Wiley, 2012), Management 12e (Wiley, 2013), and senior co-author of Organizational Behavior 12e (Wiley, 2011). Dr. Schermerhorn has also published numerous articles, including ones in the Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Organizational Dynamics, Asia-Pacific Journal of Management, the Journal of Management Development, and the Journal of Management Education. Dr. Schermerhorn is a popular guest speaker at colleges and universities. He is available for student lectures and classroom visits, as well as for faculty workshops on scholarly manuscript development, textbook writing, high engagement teaching, and instructional and curriculum innovations. Find more at http://www.downloadslide.com Preface From the beautiful cover of this book to the realities of organizations today, great accomplishments are much like inspired works of art. Whether one is talking about arranging objects or bringing together people and other resources in organizational systems, it is a balancing act. But the results are spectacular when goals and talent combine to create a lasting and positive impact. Just as artists find inspiration in all the senses that bring our world to life, managers find inspiration in daily experiences, from the insights of management scholars, through relationships with other people, and among the goals that guide organizations in an ever more demanding society. And like artists, managers must master many challenges as they strive to create the future from the resources of the present. While a beautiful formation of feathers, wood, and stones in the cover art shows balance and harmony in a visual masterpiece, a well-managed workplace can build, mix, and integrate all the beauties of human talent to achieve great things. This capacity for positive impact is the goal bound into the pages of Management 12e. It is an opportunity to gain knowledge, find inspiration, and learn practices that can help build the organizations we need to forge a better world. A well-managed workplace can build, mix, and integrate all the beauties of human talent to achieve great things. Management 12e Philosophy Today’s students are tomorrow’s leaders and managers. They are our hope for the future. When well prepared, they can be major contributors during this time of social transformation. But the workplace is rapidly changing, and so too must our teaching and learning environments change from the comforts and successes of days gone by. New values and management approaches are appearing; organizations are changing forms and practices; jobs are being redefined and relocated; the age of information is a major force in our lives; and the intricacies of globalization are presenting major organizational and economic challenges. Management 12e is designed for this new world of work. It is crafted to help students not just explore the essentials of the management discipline, but also to discover their true potential and accept personal responsibilities for developing useful career skills. The content, pedagogy, and features of this edition were carefully blended to support management educators who want their courses to: Management 12e is designed to help students discover their true potential and accept personal responsibilities for developing career skills. • enhance our students’ career readiness; • make our students more attractive as intern and job candidates; vii Find more at http://www.downloadslide.com viii PREFACE • improve our students’ confidence in critical thinking; • raise our students’ awareness of timely social and organizational issues; • inspire our students to embrace life-long learning for career success. Management 12e Pedagogy Our goal as educators should be to make good content choices that set the best possible foundations for lifelong learning. The pedagogical foundations of Management 12e are based on four constructive balances that are essential to higher education for business and management. • The balance of research insights with formative education. As educators we must be willing to make choices when bringing the theories and concepts of our discipline to the attention of the introductory student. We cannot do everything in one course. The goal should be to make good content choices that set the best possible foundations for lifelong learning. • The balance of management theory with management practice. As educators we must understand the compelling needs of students to learn and appreciate the applications of the material they are reading and thinking about. We must continually bring to their attention good, interesting, and recognizable examples. • The balance of present understandings with future possibilities. As educators we must continually search for the directions in which the real world of management is heading. We must select and present materials that can both point students in the right directions and help them develop the confidence and selfrespect needed to best pursue them. We are role models . . . we must be willing to take stands on issues such as managerial ethics and social responsibility. • The balance of what “can” be done with what is, purely and simply, the “right” thing to do. As educators we are role models; we set the examples. We must be willing to take stands on issues such as managerial ethics and social responsibility. We must be careful not to let the concept of “contingency” betray the need for positive “action” and “accountability” in managerial practice. Today, more than ever before, our students have pressing needs for direction as well as suggestion. They have needs for application as well as information. They have needs for integration as well as presentation. And they have needs for confidence built upon solid understanding. Our instructional approaches and materials must deliver on all of these dimensions and more. My goal is to put into your hands and into those of your students a learning resource that can help meet these needs. Management 12e and its supporting online resources are my contributions to the future careers of your students and mine. Management 12e Highlights Management 12e is written for students seeking career success in today’s challenging and ever-changing work environment. It introduces the essentials of management as they apply to organizations and careers in a complex global