Welcome to our 8th edition! Thank you to everyone who has used and learned from previous editions, and helped make this book such a success. We are proud to present the newest edition.

As we went to press, stock markets worldwide were going strong but also rocked by volatility due to serious uncertainties and risk in the U.S. mortgage markets. Global interdependencies and the potential perils of globalization were more evident and talked-about than usual. A string of recalls for products manufactured overseas was causing doubt about the quality of goods made in foreign countries and distrust from consumers. Global warming was still controversial but gaining awareness, the war in Iraq was unresolved, and merger and acquisition activity was high. An earlier string of ethics scandals in business and elsewhere seemed to have subsided. President George W. Bush was in the final years of his presidency, and many, many candidates from both parties were vying to replace him. MySpace and Facebook were hot, and the sports world was rocked by scandals but doing well financially.

But you won’t be reading this at the moment we went to press. Those events and trends could still be around, or they may have disappeared or reversed themselves. If they no longer hold, their repercussions still could persist—thus, they may still be relevant (or not). The world continues to change, evolve, and offer new challenges and opportunities.

As things change in the world, they change in business and management. The metaphorical glass sometimes seems half-empty, because unfortunate world events, disconcerting trends, and ineffective and unethical management practices will continue. But good people will continue to lead as well, managing well and making things better, as they always have. In this book, you will read about many managers, some doing things brilliantly, others making mistakes (with some learning from their mistakes, and some not). Some organizations rise from the ashes, or come from seemingly nowhere, to become the next hot investment. Some organizations are high-flyers one day and come crashing down the next. Some achieve greatness, and have occasional downturns, but continue being great.

These performance shifts occur in large part from the ways in which they are managed, and partly from how circumstances change. Business environments, like pendulums, swing from one extreme to another.

These changes will contribute to the fall of some currently successful companies and managers and the rise of others who currently struggle or are now just dreaming of new business ideas.

For you, as a businessperson as in life, uncertainty will be a constant state of affairs. That is, no one knows for certain what will happen, or what to do in pursuit of a successful future. Luck and the right circumstances can help companies (and people) succeed in the short run. But in the long run good management is essential.

Fortunately, you have access to current knowledge about how to manage. We have learned a lot from the people and companies that have succeeded and failed. The continuing experiment created by the vast array of management practices that exist in the business world, combined with sound research that helps tease out what works from what doesn’t, helps us learn from mistakes and identify the most important lessons and useful practices that managers can employ. We hope that you will not only learn as much as you can about this vital activity but also commit to applying it—by reading and learning, and by using it in the best possible ways.

This book and the course you are taking will help you face the managerial challenges of a changing world. In doing so, they will help you identify what’s important and what’s not, make good decisions, and take effective action on behalf of yourself, your colleagues, and the organizations for which you work.

Our Goals

Our mission with this text hasn’t changed from that of our previous editions: to inform, instruct, and inspire. We hope to inform by providing descriptions of the important concepts and practices of modern management. We hope to instruct by describing how you can take action on the ideas discussed. We hope to inspire not only by writing in a positive, interesting, and optimistic way but also by providing a real sense of the unlimited opportunities ahead of you. Whether your goal is starting your own company, leading a team to greatness, building a strong organization, delighting your customers, or generally forging a positive future, we want to inspire you to take positive actions.

We hope to inspire you to be both a thinker and a doer. We want you to think about the issues, think about the impact of your actions, think before you act. But being a good thinker is not enough; you also must be a doer. Management is a world of action. It is a world that requires timely and appropriate action. It is a world not for the passive but for those who commit to positive accomplishments.

Keep applying the ideas you learn in this course, read about management in sources outside of this course, and certainly keep learning about management after you leave school and continue your career. Make no mistake about it, learning about management is a personal voyage that will last years, an entire career, your entire lifetime.

 Competitive Advantage

Today’s world is competitive. Never before has the world of work been so challenging. Never before has it been so imperative to your career that you learn the skills of management. Never before have people had so many opportunities with so many potential rewards.

You will compete with other people for jobs, resources, and promotions. Your organization will compete with other firms for contracts, clients, and customers. To survive the competition, and to thrive, you must perform in ways that give you an edge over your competitors, that make the other party want to hire you, buy from you, and do repeat business with you. You will want them to choose you, not your competitor.

To survive and thrive, today’s managers have to think and act strategically. Today’s customers are well educated, aware of their options, and demanding of excellence. For this reason, managers today must think constantly about how to build a capable workforce and manage in a way that delivers the goods and services that provide the best possible value to the customer.

By this standard, managers and organizations must perform. Four essential types of performance, on which the organization beats, equals, or loses to the competition, are cost, quality, speed, and innovation. These four performance dimensions, when done well, deliver value to the customer and competitive advantage to you and your organization. We will elaborate on all these topics throughout the book.

The idea is to keep you focused on a type of “bottom line,” to make sure you think continually about “delivering the goods” that make both the manager (you) and the organization a competitive success. This results-oriented approach is unique among management textbooks.

 Leading & Collaborating

Yes, business is competitive. But, it’s not that simple. In fact, it is overly cynical to think strictly in terms of competition; such cynicism can sabotage your own performance. The other fundamental elements in the success equation are collaboration and leadership. People working with one another, rather than against, is essential to competitive advantage. Put another way, you can’t do it alone—the world is too complex, and business is too challenging.

You need to work with your teammates. Leaders and followers need to work as collaborators more than as adversaries. Work groups throughout your organization need to cooperate with one another. Business and government, often viewed as antagonists, can work productively together. And today more than ever, companies that traditionally were competitors engage in joint ventures and find other ways to collaborate on some things even as they compete in others. It takes leadership to make these collaborations happen.

How does an organization create competitive advantage through collaboration? It’s all about the people, and it derives from good leadership. Three stereotypes of leadership are that it comes from the top of the company, that it comes from one’s immediate boss, and that it means being decisive and issuing commands. There are grains of truth to these stereotypes, but the reality is much more complex. First, the person at the top may or may not provide effective leadership—in fact, many observers believe that good leadership is far too rare. Second, organizations need leaders at all levels, in every team and work unit. This includes you, beginning early in your career, and this is why leadership is an important theme in this book. Third, leaders should be capable of decisiveness and of giving commands, but relying too much on this traditional approach isn’t enough. Great leadership is far more inspirational than this, and helps people to both think differently but also to work differently—including working collaboratively, with a focus on results.

Leadership—from your boss, as well as from you—generates collaboration, which in turn creates results which are good for the company and good for the people involved.

 As Always, Currency and Variety in the 8th Edition

It goes without saying that this textbook, in its eighth edition, remains on the cutting edge of topical coverage, as updated via both current business examples and recent management research. Chapters have been thoroughly updated, and students are exposed to a broad array of important current topics.

We have done our very best to draw from a wide variety of subject matter, sources, and personal experiences. We continue to emphasize throughout the book themes such as real results, ethics, cultural issues, cultural considerations, and leadership and collaboration. Here is just a small sampling of new highlights in the 8th edition, enough to convey the wide variety of people, organizations, issues, and contexts represented throughout the text.

 Chapter 1

• Ray Ozzie, who replaced Bill Gates as chief software architect at Microsoft.

• Starbucks’ efforts to sell the board game Cranium in China and other countries.

• Social capital, beyond MySpace and Facebook.

 Chapter 2

• New discussion of complements in “The Competitive Environment” section.

• Discussion of substitutes.

• New examples to demonstrate the concepts of culture (Chicago Tribune, Ritz-Carlton, PepsiCo).

 Chapter 3

• The dangers of acting too fast.

• Redesigning Weyerhaueser.

• Crisis management: contaminated pet foods.

 Chapter 4

• The new unfolding case is about A. G. Lafley of Procter & Gamble.

• Updated references for material on value creation, competitor analysis, and core competencies.

• New end-of-chapter discussion questions.

 Chapter 5

• Yahoo!’s ethical dilemmas in China.

• Coca-Cola’s clean water projects in India, Mali, and Kenya.

• Truth, lies, and consequences.

 Chapter 6

• Additional material on tariffs and quotas as well as new trade agreements (ASEAN, Mercosur, CAFTADR, and FTAA).

• Expanded coverage of China and India.

• Updated material the on the WTO and European Union.

 Chapter 7

• Entrepreneurship in the “real” virtual world.

• The virtual army of Digg.com.

• The next frontiers for entrepreneurship.

 Chapter 8

• Updated material and references on integration, delegation, decentralization, coordination, and collaboration.

• New material on governance.

• Unfolding case on Best Buy’s employee empowerment.

 Chapter 9

• More coverage of ISO standards.

• Updated references and material on Toyota’s lean production system.

• Management Close-Up is on Boeing and James McNerney—a good case demonstrating agility.

 Chapter 10

• More coverage on ethics and legal versus illegal interview questions.

• Updated laws and employment practices.

• BusinessWeek material on global labor supply.

 Chapter 11

• Additional issues of age, sexual orientation, religious affiliation, etc., are profiled in the examples.

• Extended example discusses TSA worker training to help avoid religious discrimination against Muslim travelers.

• Updated material and examples of affirmative action.

 Chapter 12

• Warren Buffett, investing in leaders.

• Percy Sutton of Inner City Broadcasting.

• Citizens “stepping up” to leadership in the New Orleans/Katrina flooding.

 Chapter 13

• How Tony Dungy motivates the Indianapolis Colts.

• Empowerment at Whole Foods.

• New drug development at Wyeth.

 Chapter 14

• Teams under Xerox CEO Anne Mulcahy.

• Teamwork at NASA and ESPN.

• When the need to win runs riot.

 Chapter 15

• Crisis communications at JetBlue.

• Howard Stringer, Sony’s first foreign CEO.

• Telepresence at Wachovia.

 Chapter 16

• Additional material on Balanced Scorecards.

• New material on the “Seven Deadly Sins of Performance Measurement (and How to Avoid Them.”

• New discussion on “self-control.”

 Chapter 17

• Management Close-Up on Steve Jobs ensuring Apple’s cutting-edge technology.

• BusinessWeek box on MTV’s culture that drives innovation.

• New material on research partnerships and joint ventures that focuses on collaboration.

 Chapter 18

• Stormy weather at Delta.

• Reinforcing change at the Wyoming State Penitentiary.

• Collaboration in the Chicago Board of Trade/Chicago Mercantile Exchange merger.

 A Team Effort

This book is the product of a fantastic McGraw-Hill/Irwin team. Moreover, we wrote this book believing that we are part of a team with the course instructor and with students. The entire team is responsible for the learning process.

Our goal, and that of your instructor, is to create a positive learning environment in which you can excel. But in the end, the raw material of this course is just words. It is up to you to use them as a basis for further thinking, deep learning, and constructive action.

What you do with the things you learn from this course, and with the opportunities the future holds, counts. As a manager, you can make a dramatic difference for yourself and for other people. What managers do matters, tremendously.

 Outstanding Pedagogy

Management: Leading & Collaborating in a CompetitiveWorld is pedagogically stimulating and is intended to maximize student learning. With this in mind, we used a wide array of pedagogical features—some tried and true, others new and novel:

• Updated! Learning Objectives, which open each chapter, have been rewritten and identify for students what they will learn by reading and studying the chapter.

• New! Throughout the chapter, the Learning Objectives are reinforced again where the content for that specific objective actually occurs.

• Opening quotes provide a thought-provoking preview of chapter material. The quotes are from people like Peter Drucker (on management), Jack Welch (on strategy), Henry David Thoreau (on ethics), Julius Caesar (on leadership), and Charles Kettering (on change and the future).

• New! “Unfolding” Case: Each chapter begins with a Management Close-Up, which describes an actual leader, company, or situation. The case is then expanded within the chapter in Management Close-Up: Taking Action boxes, showing the student how the chapter content relates back to the company leader or situation introduced at the beginning of the chapter. At the end of the chapter, Management Close-Up: Assessing Outcomes and Seizing Opportunities ties up the loose ends and brings the material full circle for the student.

• Power of Collaboration boxes: Managers must deliver results. An essential skill toward doing so is the ability to work effectively with others toward a goal. These boxes speak directly to the student, and highlight the advantages of collaboration.

• Random Pop-ups: Throughout the chapter, these marginal boxes highlight interesting factoids, statistics, and quotes relating to chapter content.

• Updated! Bottom-line Practices Icons: These icons have been a hallmark of this text, and this edition is no different. A fifth icon, Service, has been added to the original four running themes of Innovation, Cost, Speed, and Quality. The text included with the icon furthers student understanding and reinforces these important results-oriented themes. New with this edition is an online quiz tied directly to the Bottom-line Practice icons.

• New boxed inserts describing current examples and controversial issues are found throughout the text.

• “From the Pages of BusinessWeek” highlights recent BusinessWeek articles.

 End-of-Chapter Elements

• Key terms are page-referenced to the text and are part of the vocabulary-building emphasis. These terms are defined again in the glossary at the end of the book.

• A Summary of Learning Objectives provides clear, concise responses to the learning objectives, giving students a quick reference for reviewing the important concepts in the chapter.

• Discussion Questions, which follow the Summary of Learning Objectives, are thought-provoking questions on concepts covered in the chapter and ask for opinions on controversial issues.

• Concluding Cases: Each chapter ends with a case based on disguised but real companies and people that reinforces key chapter elements and themes.

• Experiential Exercises: Many exercises have been added to tried and true previous edition favorites. Some exercises allow for personality assessment, some are for use as group activities in the classroom, and some involve outside research.

 End-of-Part Elements

• Supplementary Cases: At the end of each part, a new case is provided for professors who want students to delve further into part topics.

Comprehensive Supplements

For the Student

 • Online Learning Center (OLC) at www.mhhe.com/bateman8e: More and more students are studying online. As they do, they can refer to the OLC for such benefits as: Self-grading Quizzes (including mid-term and final exam practice), Internet exercises, and learning objectives. Management: Leading & Collaborating in a Competitive World also offers a Career Planning Exercise, and flash-based self-assessments and learning exercises called “Build Your Management Skills.” Students are able to complete these exercises on their own and receive instant, comprehensive feedback to their responses.

There are nearly 50 exercises to choose from, and a matrix for use is provided online and in the Instructor’s Manual. The exercises include:

• Management’s Historical Figures

• Ethics

• SWOT Analysis

• Characteristics of Managerial Control

• What is Your Primary Conflict-Handling Style?

• Assessing Your Emotional Intelligence

• Comparing Affirmative Action, Valuing Diversity, and Managing Diversity and many more!

 For the Instructor

• Instructor’s Manual: prepared by Carol Moore, California State University–Hayward, contains above and beyond the material you need to prepare an effective classroom experience. Utilizing her own students for feedback in preparing, Professor Moore has created a “road map” for each chapter, highlighting within the Lecture Outline not only where available supplements can be brought into the discussion, but also offering Teaching Tips and other useful facts that can be used to capture students’ interest. Reviewer feedback from users of this IM tells us that it is one of the best available. In detail, the manual includes such features as:

-Key Student Questions—taken directly from her own classroom experience

-Class Pre-work Assignments

-Guidance for using the “Unfolding” cases—How to make these chapter-opening features important for students—additional comments on setting up the introductory case study, examples of how the concepts are important in the real world

-Chapter Outline with Teaching Tips: a completely integrated overview of how to teach a class. It includes:

-Chapter Content in Outline Form (Lecture Notes)

-Exercises and Cases from text placed where they naturally fall in outline

-Examples where appropriate (at least one for each major learning objective)

-Common student questions, with answers

-Teaching Tips (how to handle large lecture sections, etc.)

-Extra Exercises as available from previous editions

-Concluding Case Notes

-Supplementary Case Notes

-Video Notes—for each chapter video

• Test Bank: prepared by Eileen Hogan, Kutztown University, the Test Bank contains a variety of true/false, multiple-choice, and essay questions. Also includes “Scenario-based” questions, which are application-based, and use a situation described in a narrative, with 3–5 multiple-choice test questions based on the situation described in the narrative.

• PowerPoint Presentation slides: prepared by Scott Droege, Western Kentucky University, the Power-Point presentation slides collection contains everything from an easy-to-follow outline, to additional slides with embedded video clips and weblinks, to figure downloads from the text. This versatility allows you to create a custom presentation suitable for your own classroom experience.

• All of the above can be found on the Instructor’s CD-ROM.

• New! Enhanced Cartridge with iPod Content: The Enhanced Cartridge is developed to help you get your course up and running in WebCT, Black-Board, and other course management systems. The content, enhanced with more assignments and more study materials than a standard cartridge, is pre-populated into appropriate chapters and content categories. Now there’s not a need to cut and paste our content into your course—it’s already there! But you can still choose to hide content we provide and add your own—just as you have before in WebCT and BlackBoard. Every Enhanced Cartridge contains iPod/MP3 content, chapter pre-and post-tests, discussion boards, additional assignments, personalized graphics/banners/icons for your school, and grade book functionality.

• The Group & Video Resource Manual: An Instructor’s Guide to an Active Classroom. Authored by Amanda Johnson and Angelo Kinicki of Arizona State University, the Group & Video Resource Manual was created to help instructors create a livelier and stimulating classroom environment. The manual contains interactive in-class group and individual exercises to accompany Build Your Management Skills assessments on the OLC, additional group exercises for each chapter and comprehensive notes and discussion questions to accompany the Manager’s Hot Seat. This valuable guide includes information and material to help instructors successfully execute additional group exercises and the Manager’s Hot Seat into their classrooms. For each exercise, the manual includes learning objectives, unique PowerPoint slides to accompany the exercises, and comprehensive discussion questions to facilitate enhanced learning. The manual also includes lecturettes and associated PowerPoint slides to supplement and expand material presented for each exercise.

• The Manager’s Hot Seat: The Manager’s Hot Seat is an interactive online video program that allows students to watch 15 real managers apply their years of experience in confronting issues. Students assume the role of the manager as they watch the video and answer multiple-choice questions that pop up during the segment, forcing them to make decisions on the spot. Students learn from the manager’s mistakes and successes, and then do a report critiquing the manager’s approach by defending their reasoning. The Hot Seat is an optional package with this text.

• New! Management in the Movies: McGraw-Hill is now offering a Management in the Movies DVD loaded with scenes from major Hollywood movies and TV shows! Each movie has been clipped to highlight a specific scene (each is less than two and a half minutes) and linked to specific topics including leadership, planning, value chain management, ethics, diversity, global management, and more! Along with the DVD, McGraw-Hill provides an instructor’s manual with suggestions for usage of the clip, clip summaries, and discussion questions to accompany each segment.

• Videos are available for each chapter. Corresponding video cases and a guide that ties the videos closely to the chapter can be found in the Instructor’s Manual and Online.

Acknowledgments

This book could not have been written and published without the valuable contributions of many individuals. First, Karen Hill and her colleagues at Elm Street Publishing were instrumental in creating a strong 8th edition. Many thanks for their meticulous attention to detail and suggestions for improvement. Karen has become a valued friend throughout this process, and we couldn’t have done it without her. Our reviewers over the last seven editions contributed time, expertise, and terrific ideas that significantly enhanced the quality of the text. The reviewers of the eighth edition are:

James D. Bell

Texas State University

Dennis Brode

Sinclair Community College

Scott Droege

Western Kentucky University

Linda Hefferin

Elgin Community College

Andy Klein

DeVry University

Casey Kleindeinst

California State University–Fullerton

Peter Mooney

Embry-Riddle Aeronautical University

Ronald O’Neal

Camden County College

Ralph Parrish

University of Central Oklahoma

Sheila Petcavage

Cuyahoga Community College

Mansour Sharifzadeh

Cal State Polytechnic University–Pomona

Richard L. Smith

Iowa State University

We also would like to thank those who reviewed

for us in previous editions:

Ray Aldag

University of Wisconsin-Madison

Debra A. Arvanites

Villanova University

Robert J. Ash

Rancho Santiago College

Rathin Basu

Ferrum College

Charles A. Beasley

State University of New York-Buffalo

Hrach Bedrosian

New York University

Charles Blalack

Kilgore College

Mary A. Bouchard

Bristol Community College

Barbara Boyington

Brookdale Community College

Eugene L. Britt

Grossmont College

Mark Brown

Bradley University

Nancy Bryant

Metropolitan State University

Lyvonne Burleson

Rollins College-Brevard

Diane Caggiano

Fitchburg State College

Shawn Carraher

Indiana University-NW Campus

Elizabeth A. Cooper

University of Rhode Island

Anne C. Cowden

California State University-Sacramento

Al Crispo

Purdue University

Davis J. Charlene

Trinity University

Ron Dibattista

Bryant College

Dale Dickson

Mesa State College

Michael W. Drafke

College of DuPage

Jack Dustman

Northern Arizona University

Vincent Enslein

Clinton Community College

J. F. Fairbank

Pennsylvania State University

Janice Felbauer

Austin Community College

David Foote

Middle Tennessee State University

Alan J. Fredian

Loyola University-Chicago

Steve Garlick

DeVry Institute-Kansas City

Jonathon R. B. Halbesleben

University of Oklahoma

John Hall

University of Florida

Donald E. Harris

Oakton Community College

Carolyn Hatton

Cincinnati State Tech Community College

Frederic J. Hebert

East Carolina University

Dorothy Hetmer-Hinds

Trinity Valley Community College

Durward Hofler

Northeastern Illinois University

Barry L. Van Hook

Arizona State University

Thomas O. James

Benedictine College

Thomas Jay

Flathead Valley Community College

William Jedlicka

William Rainey Harper College

Scott A. Johnson

Southeast Missouri State University

Elias Kalman

Baruch College

Linda Keup

Concordia College

Gus. L. Kotoulas

Morton College

Subodh P. Kulkarni

Howard University

Augustine Lado

Cleveland State University

Dick Larkin

Central Washington University

Marya Leatherwood

University of Illinois-Springfield

MarySue Love

Maryville University

Granger Macy

Texas A&M-Corpus Christi

Larry Maher

State University of New York-Oswego

Anthony S. Marshall

Columbia College

Catherine C. McElroy

Bucks County Community College

James C. McElroy

Iowa State University

David L. McLain

Virginia State University

Dot Moore

The Citadel

Joseph B. Mosca

Monmouth College

Ken Murdock

University of Texas-Arlington

Randy Nichols

Oakland City University

Bert Nyman

Rockford College

Tim O'Leary

University of Notre Dame

Monica Quattlebaum

Phillips Community College

James J. Ravelle

Moravian College

Gary Roberts

Kennesaw State University

John W. Rogers

American International College

Joseph C. Santora

Essex County College

Marian Schultz

University of West Florida

Amy Sevier

University of Southern Mississippi

Linda Shonesy

Athens State University

Marc Siegall

California State University-Chico

Fred Slack

Indiana University of Pennsylvania

Carl Sonntag

Pikes Peak Community College

Christina Stamper

University of North Carolina-Wilmington

Christina Stamper

Western Michigan University

James Swenson

Minnesota State University-Moorhead

Patricia Tadlock

Horry Georgetown Tech College

Michael Vijuk

William Rainey Harper College

Jim Wachspress

New Jersey Institute of Technology

George Wagman

Texas A&M-Kingsville

Ben Weeks

St. Xavier University

John Wong

Neumann College

Many individuals contributed directly to our development as textbook authors. Dennis Organ provided one of the authors with an initial opportunity and guidance in textbook writing. John Weimeister has been a friend and adviser from the very beginning. The entire McGraw-Hill/Irwin team demonstrated continued and generous support for this book. Many thanks to Christine Scheid for so much good work on previous editions and for continued friendship. And to Donielle Xu, development editor, and Anke Braun Weekes, marketing manager, thank you for your skills, professionalism, collegiality, and for making the new edition rock! What a team! Finally, we thank our families. Our parents, Jeanine and Tom Bateman and Clara and John Snell, provided us with the foundation on which we have built our careers. They continue to be a source of great support. Our wives, Mary Jo and Marybeth, demonstrated great encouragement, insight, and understanding throughout the process. Our children, Lauren (who also helped with clerical work), T. J., and James Bateman and Sara, Jack, and Emily Snell, inspire us in every way.

Thomas S. Bateman
Charlottesville, VA

Scott A. Snell
Charlottesville, VA