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Management A Focus on Leaders Planning Organizing Leading Controlling This page intentionally left blank Management A Focus on Leaders Planning Organizing Leading Controlling Annie McKee Teleos Leadership Institute Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Chapter Opener Credits: Page 56: Image CDH Design/iStockphoto; Page 338: Image iQoncept/ShutterStock; Page 378: Image mosrafa fawzy/ShutterStock; Page 456: Image Devation/Edwin Verbruggen/ShutterStock Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Kim Norbuta Director of Editorial Services: Ashley Santora Editorial Project Manager: Claudia Fernandes Editorial Assistant: Carter Anderson Director of Marketing: Patrice Lumumba Jones Director of Development: Steve Deitmer Development Editor: Laura Town Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Operations Specialist: Arnold Vila Creative Director: John Christiana Interior and Cover Designer: Blair Brown Senior Art Director: Blair Brown MyLab Product Manager: Joan Waxman Editorial Media Project Manager: Denise Vaughn Production Media Project Manager: Lisa Rinaldi Full-Service Project Management/Composition: S4Carlisle Publishing Services Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Minion Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2012 by Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458. Many of the designations by manufacturers and seller to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data McKee, Annie, 1955Management: a focus on leaders/Annie McKee. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-13-257590-4 (alk. paper) ISBN-10: 0-13-257590-6 (alk. paper) 1. Leadership. 2. Management. I. Title. HD57.7.M3959 2011 658.4—dc22 2010017698 10 9 8 7 6 5 4 3 2 1 www.pearsonhighered.com ISBN 10: 0-13-257590-6 ISBN 13: 978-0-13-257590-4 With admiration for his scholarship and his passion for the natural world, With respect for his strength, his humor, and the gifts of insight he gave to us, and With profound gratitude for the time we had together, the fun we had and the love we all shared, I dedicate this book to my brother, Robert Wigsten, 1961–2009. This page intentionally left blank Brief Table of Contents Chapter 1: Managing and Leading Today: The New Rules pg. 2 Chapter 2: The Leadership Imperative: It’s Up to You pg. 16 Chapter 3: Motivation and Meaning: What Makes People Want to Work? pg. 56 Chapter 4: Communication: The Key to Resonant Relationships pg. 94 Chapter 5: Planning and Strategy: Bringing the Vision to Life pg. 136 Chapter 6: The Human Side of Planning: Decision Making and Critical Thinking pg. 176 Chapter 7: Change: A Focus on Adaptability and Resiliency pg. 210 Chapter 8: Workplace Essentials: Creativity, Innovation, and a Spirit of Entrepreneurship pg. 252 Chapter 9: Organizing for a Complex World: Structure and Design pg. 292 Chapter 10: Teams and Team Building: How to Work Effectively with Others pg. 338 Chapter 11: Working in a Virtual World: Technology as a Way of Life pg. 378 Chapter 12: Organizational Controls: People, Processes, Quality, and Results pg. 418 Chapter 13: Culture: It’s Powerful pg. 458 Chapter 14: Globalization: Managing Effectively in a Global Economic Environment pg. 496 Chapter 15: Sustainability and Corporate Social Responsibility: Ensuring the Future pg. 544 Chapter 16: Managing and Leading for Tomorrow: A Focus on Your Future pg. 590 vii Contents The World Has Changed Acknowledgments (pg. xxxi) About the Author (pg. 1) (pg. xxi) Chapter 1: Managing and Leading Today: The New Rules (pg. 2) Why Do Managers Have to Be Leaders? (pg. 4) Today, Everyone Needs to Be a Leader (pg. 4) What Being a Leader Means for You (pg. 4) PERSPECTIVES: Dolores Bernardo (pg. 5) What Is the Difference between a Manager and a Leader? (pg. 7) PERSPECTIVES: John Fry (pg. 7) Traditional Views of Managers and Leaders (pg. 8) What Managers Actually Do (pg. 9) PERSPECTIVES: Jill Guindon-Nasir (pg. 11) What Is the Other Side of the Leadership Coin? (pg. 11) A Final Word: Changing World, Changing Expectations of Managers and Leaders (pg. 13) KEY TERMS (pg. 14) VISUAL SUMMARY (pg. 15) Chapter 2: The Leadership Imperative: It’s Up to You (pg. 16) Leadership: Whose Responsibility Is It? (pg. 18) We All Need to Become Great Leaders (pg. 18) PERSPECTIVES: Lawton Fitt (pg. 19) Leadership Is Learned (pg. 19) What Is the Secret to Effective Leadership? (pg. 20) Competencies Explained (pg. 20) Five Components of Competencies (pg. 21) Threshold and Differentiating Competencies (pg. 21) Technical, Cognitive, and Relational Competencies (pg. 22) Competency Models (pg. 22) Social and Emotional Competencies and Resonant Leadership (pg. 22) Self-Awareness: The Foundation of Social and Emotional Intelligence (pg. 24) What Is the Secret to Influential Leadership? (pg. 25) Sources of Power Exist in Different Forms (pg. 26) Empowerment (pg. 27) Empowered Employees and Empowering Organizations (pg. 27) STUDENT’S CHOICE: Big City Leader in a Small-Town Plant (pg. 28) Empowerment and Theories X, Y, and Z (pg. 29) The Empowerment Movement Today (pg. 29) viii What Is the Secret to Responsible Leadership? (pg. 30) Developing Values and Ethics (pg. 30) Levels of Ethics (pg. 31) Individual Ethics (pg. 31) Professional Ethics (pg. 32) Organizational Ethics (pg. 32) Societal Ethics (pg. 32) Business Ethics: It’s Complicated (pg. 33) Ethics in Business and the Role of Law (pg. 33) Laws Often Follow Ethical Violations (pg. 33) When Laws Force People to Change: The International Anticorruption and Good Governance Act of 2000 (pg. 34) Dealing with Ethical Dilemmas at Work (pg. 34) BUSINESS CASE: The Washington Post: A Lesson of Lasting Impact (pg. 35) Defining Ethics through Leadership (pg. 35) How to Handle Everyday Decisions Ethically (pg. 36) What Happens When It Goes Wrong: The Slippery Slope (pg. 36) Rationalizing Unethical Behavior (pg. 37) When All Is Said and Done, Ethical Behavior Is Up to You (pg. 38) How Do Theories and Models Explain Management and Leadership? (pg. 39) Trait Theories of Leadership (pg. 39) Behavior Models and Approaches to Leadership (pg. 40) Ohio State Studies: Consideration and Initiating Structure (pg. 40) University of Michigan Studies: Production- and Employee-Oriented Behavior (pg. 40) Leadership Grid (pg. 41) Contingency Approaches to Leadership (pg. 42) Fiedler’s Contingency Theory (pg. 42) Situational Leadership Theory (pg. 42) Path-Goal Theory (pg. 43) Leader Substitutes Model (pg. 43) The Study of Leadership Continues (pg. 43) Is It Time to Take a Stand for Transformational Leadership? (pg. 44) What Is HR’s Role in Supporting Excellent and Ethical Leadership? (pg. 45) The HR Cycle (pg. 45) Ethical Leadership Development (pg. 46) HR’s Leadership Roles (pg. 47) Whistle-Blower Protection (pg. 48) CONTENTS What Can We All Do to Become Great Leaders? (pg. 48) Self-Aware Leaders Are Authentic (pg. 49) Self-Aware Leaders Inspire Trust (pg. 50) Inspirational Leaders: Integrity, Courage, and Ethical Leadership (pg. 50) A Final Word on Leadership (pg. 51) KEY TERMS (pg. 52) VISUAL SUMMARY (pg. 54) Chapter 3: Motivation and Meaning: What Makes People Want to Work? (pg. 56) What Is Motivation? (pg. 58) What Makes Work Meaningful? (pg. 58) The Flow Experience (pg. 59) Motivation: It’s Up to You (pg. 60) PERSPECTIVES: Bonaventure Agata (pg. 60) Great Leaders Inspire and Motivate Us (pg. 60) What Is the Link between Motivation and Psychology? (pg. 61) Intrinsic Motivation (pg. 62) Extrinsic Motivation (pg. 62) BUSINESS CASE: Google: Motivation for Innovation (pg. 63) Locus of Control (pg. 63) Motivation and the Big Five Dimensions of Personality (pg. 64) Which Theories of Motivation Are Important to Know? (pg. 65) What Are Basic and Higher-Order Needs Theories of Motivation? (pg. 66) Hierarchy of Needs (pg. 67) ERG Theory (pg. 67) Two-Factor Theory (pg. 68) Why Are the Three-Needs, Equity, Expectancy, and Goal-Setting Theories Popular? (pg. 69) Three-Needs Theory (pg. 69) Need for Achievement (pg. 69) Need for Affiliation (pg. 70) Need for Power (pg. 70) Personalized versus Socialized Power (pg. 71) Socialized Power, Prosocial Behavior, and Ubuntu (pg. 71) Measuring Needs for Achievement, Affiliation, and Power (pg. 71) Equity Theory (pg. 72) Equity Theory and Cognitive Dissonance (pg. 73) Is Equity Theory Relevant Today? (pg. 73) Restoring Equity: What Managers Can Do (pg. 74) Expectancy Theory (pg. 75) Goal-Setting Theory (pg. 76) Smart Goals (pg. 77) “Doing” and “Being” Goals (pg. 77) | What Are Learning Theories? (pg. 78) Operant Conditioning Theory (pg. 78) Positive Reinforcement (pg. 78) Punishment (pg. 79) “What Did I Do Wrong?” (pg. 79) “Why Me?” (pg. 79) “I Must Be an Awful Person.” (pg. 80) “I Can’t Believe My Manager Did That in Front of Everyone.” (pg. 80) Operant Conditioning: Does It Really Work? (pg. 80) Social Learning Theory (pg. 81) Vicarious Learning: The Bobo Doll Experiment (pg. 81) Self-Reinforcement: Don’t Wait for Others to Reward You (pg. 81) Self-Efficacy (pg. 82) How Can We Integrate Theories of Motivation? (pg. 83) STUDENT’S CHOICE: Lance Armstrong and LIVESTRONG (pg. 83) What Role Does HR Play in Motivation? (pg. 84) Compensation and Reward Programs (pg. 84) The Job Characteristics Model (pg. 85) What Can We All Do about Motivation? (pg. 86) Self-Awareness and Motivation (pg. 86) Empathy and Motivation (pg. 87) A Final Word on Motivation and Meaning at Work (pg. 88) KEY TERMS (pg. 88) VISUAL SUMMARY (pg. 91) Chapter 4: Communication: The Key to Resonant Relationships (pg. 94) Why Is Communication Central to Effective Relationships at Work? (pg. 96) PERSPECTIVES: Karen Lombardo (pg. 96) How Do Humans Communicate? (pg. 97) Language: Our Human Specialty (pg. 97) Verbal and Sign Language (pg. 98) Written Language (pg. 99) Denotation and Connotation (pg. 100) Nonverbal Communication: Our Bodies, Our Voices, and Pacing (pg. 100) Body Language (pg. 101) Vocal Intonation, Volume, and Pacing in Communication (pg. 101) How Do We Communicate and Interpret Sophisticated Information? (pg. 102) Expressing Emotions: How Nonverbal Behavior Gives Us Away When It Comes to Feelings (pg. 102) A Sophisticated Skill: Interpreting Emotions, Opinions, and Facts at Work (pg. 103) ix