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Management
Fourth Canadian Edition
DANIEL G. B ACHRACH
University of Alabama
BARRY WRIGHT
Brock University
VICE PRESIDENT, EDUCATION Tim Stookesberry
DIRECTOR, BUSINESS, ACCOUNTING, AND FINANCE Michael McDonald
EXECUTIVE EDITOR Lisé Johnson/Christine Moore
DEVELOPMENT EDITOR Daleara Hirjikaka
EDITORIAL ASSISTANT Ethan Lipson
SENIOR MARKETING MANAGER Anita Osborne
SENIOR CONTENT MANAGER Dorothy Sinclair
PRODUCTION EDITOR AND MEDIA SPECIALIST Meaghan MacDonald
DESIGN Wiley
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COVER PHOTO © Justin Lewis / Getty Images
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10 9 8 7 6 5 4 3 2 1
About the Authors
B A R R Y W R I G H T M A , P H . D. , is an associate professor University of Hong Kong, on-site coordinator of the Ohio
and previously the interim dean at the Goodman School of University MBA and Executive MBA programs in Malaysia, and
Business at Brock University in St. Catharines, Ontario, and is Kohei Miura visiting professor at Chubu University in Japan.
the former director of the Niagara Community Observatory. He has served as adjunct professor at the National University
Dr. Wright has over 25 years of experience in the classroom. of Ireland at Galway and advisor to the Lao-American College
Prior to joining the faculty at Brock, he worked as a professor in Vientiane, Laos. He presently teaches an MBA course at
at St. Francis Xavier University, and taught at the International Università Politecnica Delle Marche in Ancona, Italy, and
Study Centre in Herstmonceux, United Kingdom, and at Ph.D. seminars in the Knowledge and Innovation Manage-
Queen’s University in Kingston, Ontario. He has also worked as ment doctoral program at Bangkok University, Thailand. At
an administrator with the City of Red Deer, Alberta. During his Ohio University he has twice been Director of the Center for
career as an educator, Barry has received several excellence Southeast Asian Studies.
in teaching awards at both the undergraduate and graduate A member of the Academy of Management, Dr. Schermerhorn
student levels. was chairperson of the Management Education and Devel-
At home in the classroom, Barry is also comfortable in the opment Division. Management educators and students alike
boardroom. He has served on several boards of directors, most know him as author of Exploring Management 4e (Wiley,
recently as board chair of the Niagara Health System, and has 2014) and Management 12e (Wiley, 2013) and co-author of
also provided a variety of training and research consultations Organizational Behavior 4e (Wiley, 2014). Dr. Schermerhorn
to a number of Canadian private and public organizations. has also published numerous articles, including ones in the
These services have included the development and implemen- Academy of Management Journal, Academy of Management
tation of programs in leadership, employee motivation, strate- Review, Academy of Management Executive, Organizational
gic planning, diversity management, stress management, and Dynamics, Asia-Pacific Journal of Management, Journal of Man-
managing organizational change. Barry also provides one-on- agement Development, and Journal of Management Education.
one “coaching” sessions for senior executives who have ex- Ohio University named Dr. Schermerhorn a University
pressed a desire for outside counsel. Professor, the university’s highest campus-wide honour for
He received his MA (Sport Psychology) and Ph.D. (Man- excellence in undergraduate teaching. He is a popular guest
agement) degrees from Queen’s University. His academic re- speaker at colleges and universities. He is available for student
search focuses on understanding and solving leadership chal- lectures and classroom visits, as well as for faculty workshops
lenges, change and its influence on organizational members, on scholarly manuscript development, textbook writing,
and creating effective work environments. high engagement teaching, and instructional and curriculum
Barry enjoys being married and being a father, coaching innovations.
sports, a trip to the art gallery, travelling, and a good laugh. D R . DA N I E L (DA N) G . B AC H R AC H is the Robert C. and
D R . J O H N R . S C H E R M E R H O R N , J R . , is the Charles G. Rosa P. Morrow Faculty Excellence Fellow and Professor
O’Bleness Professor of Management Emeritus in the College of Management in the Culverhouse College of Commerce
of Business at Ohio University, where he teaches graduate and Business Administration at the University of Alabama,
courses in management and organizational behaviour. Dr. where he teaches graduate and undergraduate courses
Schermerhorn earned a Ph.D. in organizational behaviour in management. Dr. Bachrach earned a Ph.D. in organiza-
from Northwestern University, an MBA (with distinction) in tional behaviour and human resource management—with
management and international business from New York a minor emphasis in strategic management—from Indiana
University, and a BS in business administration from the State University’s Kelley School of Business, an MS in industrial/
University of New York at Buff alo. He previously taught at organizational psychology from the University of Wisconsin-
Tulane University, the University of Vermont, and Southern Oshkosh, and a BA in psychology from Bates College in
Illinois University at Carbondale, where he also served as head Lewiston, Maine.
of the Department of Management and associate dean of the A member of the Academy of Management and the Society
College of Business Administration. for Industrial and Organizational Psychology, Dr. Bachrach
International experience adds a unique global dimen- serves on the editorial boards of the Journal of Applied Psy-
sion to Dr. Schermerhorn’s teaching and writing. He holds an chology and Organizational Behavior and Human Decision
honorary doctorate from the University of Pécs in Hungary. Processes. He is co-editor of the Handbook of Behavioral
He was a visiting professor of management at the Chinese Operations Management: Social and Psychological Dynamics
iii
iv About the Authors
in Production and Service Settings (Oxford University Press, Journal of Applied Psychology, Strategic Management Journal,
2014), co-author of Transformative Selling: Becoming a Re- Organizational Behavior and Human Decision Processes,
source Manager and a Knowledge Broker (Axcess Capon, 2014), Personnel Psychology, Journal of Management, Leadership
and senior co-author of 10 Don’ts on Your Digital Devices: The Quarterly, Production and Operations Management, Journal
Non-Techie’s Survival Guide to Digital Security and Privacy of Operations Management, Journal of Supply Chain Manage-
(Apress, 2014). Dr. Bachrach also has published extensively in a ment, and Journal of Personal Selling and Sales Management.
number of academic journals, including Organization Science,
Preface
Today’s global workplace requires careful navigation. Some- to life in discussions, activities, and individual and team
times the waters are choppy and sometimes it’s smooth sailing. assignments: Evaluate Career Situations, Reflect on the
No matter the conditions, a successful organization requires Self-Assessment, Contribute to the Class Exercise, Manage
skilled leaders at the helm and confident team members who a Critical Incident, Collaborate on the Team Activity, and
know the ropes. Analyze the Case Study. These instructional enrichments are
With ever-changing technology and market conditions introduced at the very beginning of each chapter as part of
and opportunities, today’s organizations must be nimble. It What to Look for Inside: Skills Make You Valuable.
requires strategy, planning, teamwork, communication, and
preparation to be able to change course quickly. It is no longer
an option to remain safe in the harbour; organizations know
that taking risk is the path to success. Management 4e Philosophy
As you embark on your learning journey, this text will give
you a firm understanding of management theory and practices Today’s students are tomorrow’s leaders and managers. They
that will prepare you to launch your career, no matter which are our hope for the future during this time of social transfor-
way the winds blow. Whether you want to become a captain or mation. New values and management approaches are appear-
a valued crew member, Management 4e presents the tools to ing; organizations are changing forms and practices; jobs are
succeed from a Canadian perspective. 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.
New to Management 4e
Management 4e is designed to help students discover
Management 4e has been revised and updated with a focus on their true potential and accept personal responsibilities
real-world anchors for timely content, student engagement in for developing career skills.
critical thinking about real-world and personal career issues,
and instructor opportunities for enriched classroom activities
and assignments. Management 4e and its rich selection of timely examples
Timely content—All content has been updated. Examples and thought-provoking features for analysis and reflection is
of new and expanded coverage include triple bottom line and designed for this new world of work. It is crafted to help students
shared value view (Chapter 3), disruptive innovation and hu- understand that management is real and is an everyday part of
man sustainability (Chapter 4), reshoring and tax inversions their lives. By engaging with Management 4e, students explore
(Chapter 5), social entrepreneurship and crowdfunding (Chap- the essentials of management while also discovering their true
ter 6), data mining and analytics (Chapter 7), goal management potential for developing useful career skills. The content,
and goal alignment (Chapter 8 and Chapter 16), employment pedagogy, and features of this edition were carefully blended to
issues and controversies (Chapter 13), leadership and follower- support management educators who want their students to:
ship (Chapter 14), technology personality and mood contagion
(Chapter 15), and team virtuousness (Chapter 17). • grow in career readiness,
Student engagement features—Student engagement is an • become attractive internship and job candidates,
embedded theme in Management 4e. Look for these features
• gain confidence in critical thinking,
that bring life to disciplinary content: Analysis—Make Data Your
Friend, Choices—Think before You Act, Ethics—Know Right from • identify timely social and organizational issues, and
Wrong, Insight—Keep Learning about Yourself, and Wisdom— • embrace lifelong learning for career success.
Learn from Role Models. Each feature is designed and visually
presented to attract student attention and engage them in
reflection and critical thinking. These features are introduced
at the very outset of each chapter as part of What to Look for Management 4e Pedagogy
Inside: Management Is Real.
Enriched classroom opportunities—The active and enriched The pedagogical foundations of Management 4e are based on
classroom is also an embedded theme in Management 4e. Look four constructive balances that are essential to higher educa-
for these opportunities that make it easy to bring text content tion for business and management.
v
vi Preface
• The balance of research insights with formative education. The timely content offers flexibility in meeting a wide
As educators we must be willing to make choices when bring- variety of course objectives and instructor preferences. The
ing the theories and concepts of our discipline to the atten- material is organized in five logical parts—Management,
tion of the introductory student. We cannot do everything in Environment, Planning and Controlling, Organizing, and
one course. The goal should be to make good content choices Leading. The parts and the accompanying material can be
that set the best possible foundations for lifelong learning. used in any order and combination. All content has been
updated and enriched with new features and examples from
the latest current events.
Our goal as educators should be to make good con-
tent and pedagogical choices that set the best pos-
sible foundations for lifelong learning. Learning Model
The Management 4e learning model makes it easy for students
• The balance of management theory with management to read, study, reflect, and use critical thinking. Their attention
practice. As educators we must understand the compel- is focused on building management skills and competencies
ling needs of students to learn and appreciate the applica- through active learning, and on discovering that management
tions of the material they are reading and thinking about. issues and themes permeate current events that affect every-
We must continually bring to their attention interesting day living.
and relevant examples.
• The balance of present understandings with future pos-
The Management 4e learning model makes it easy for
sibilities. As educators we must continually search for the
students to study, reflect, and use critical thinking as
directions in which the real world of management is head-
they read.
ing. We must select and present materials that can both
point students in the right directions and help them develop
the confidence and self-respect needed to best pursue them.
Each chapter opens with a compelling photo and quote,
• The balance of what “can” be done with what is, purely followed by a learning dashboard that provides a Chap-
and simply, the “right” thing to do. As educators we are ter Quick Start overview, list of Takeaway Questions, and a
role models; we set the examples. We must be willing to What to Look for Inside directory in two parts: Management
take stands on issues such as managerial ethics and social Is Real—with features on Analysis, Choices, Ethics, Insight,
responsibility. We must be careful not to let the concept and Wisdom; and Skills Make You Valuable—with features
of “contingency” betray the need for positive “action” and to Evaluate, Reflect, Contribute, Manage, Collaborate, and
“accountability” in managerial practice. Analyze. Figures and online animations provide visual sup-
port for student comprehension as concepts, theories, and
terms are introduced. The Management Learning Review
We are role models . . . we must be willing to take section helps students prepare for quizzes and exams by
stands on issues such as managerial ethics and completing a Takeaway Question Summary and Self-Test.
social responsibility. Interactive self-assessments give students a chance to en-
gage with some of the end-of-chapter questions in an online
environment.
Our students have pressing needs for direction as well as sug-
gestion. They have needs for application as well as information.
They have needs for integration as well as presentation. And they Self-Reflection, Active Learning,
have needs for confidence that comes from solid understanding.
Our goal is to put into your hands and into those of your students and Critical Thinking
a learning resource that can help meet these needs.
The What to Look for Inside guide in the learning dashboard
points out the many features in Management 4e that provide
students with important opportunities for self-reflection, ac-
Management 4e Highlights tive learning, and critical thinking. Management Is Real features
current events, timely issues, and real people and situations to
Management 4e introduces the essentials of management as build awareness and stimulate personal reflection.
they apply to organizations and careers in a complex global At the end of each chapter, Skills Make You Valuable fea-
society. The subject matter is carefully chosen to meet Associa- tures provide a variety of opportunities to build management
tion to Advance Collegiate Schools of Business (AACSB) accred- skills through individual and team learning activities.
itation guidelines, while still allowing extensive flexibility to fit A sampling of the Management Is Real and Skills Make You
various course designs, class sizes, and delivery formats. Valuable features follows:
Preface vii
Acknowledgements
Writing is always a big task and there are many people who have contrib- I am grateful to the following colleagues who offered their percep-
uted greatly to this project. Special thanks go to Lisé Johnson, Acquisi- tive and very useful feedback during development and contributed to
tions Editor, for her support and vision for the project. I would very much the related supplements.
like to acknowledge Deanna Durnford, Daleara Hirjikaka, and Meaghan
Ann Conquergood, Athabasca University
MacDonald of John Wiley & Sons Canada, Ltd. The support each has
Burchell Hanson, Humber College
provided to me is truly above and beyond—thank you. I would also like
Judy Kovacs, Northern Alberta Institute of Technology
to thank Anita Osborne, Senior Marketing Manager, for her very helpful
Richard Michalski, McMaster University
counsel on making the content faculty-focused and student-friendly.
Horatio Morgan, Ryerson University
I would also like to thank Laurel Hyatt (a truly gifted writer), Lana
Sui Sui, Ryerson University
Okerlund, and Belle Wong for their extraordinary editorial contributions.
Wendy Tarrel, Nova Scotia Community College
I would like to offer my particular thanks to Linda Bramble, who
Gerhard Trippen, University of Toronto
was both innovative and instrumental in creating many of the Cana-
dian features and cases in this offering. She is a talented writer and In closing, I would especially like to thank my family—my lovely
scholar and I am blessed to have her join me on this project. wife Mary, darling daughters Monica and Kit, and happy son John
I am also thankful for the expert sales team that Wiley Canada has Emmett—who all offered hugs and help along the way. To my father
in place. Each and every one of them is a true delight to work with (go and mother Herb and Mable Wright, for all your guidance, strength,
for the gold). To all, my heartfelt thanks. and love, I dedicate this book.
Barry Wright
St. Catharines, Ontario
August 2017
Brief Contents
Part One Management Part Five Leading
1. Management Today 1 14. Leading and Leadership Development 263
3. Ethics and Social Responsibility 40 16. Motivation Theory and Practice 304
ix
Contents
Part One Management 3 Ethics and Social
1 Management Today 1 Responsibility 40
x
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