Management Theory and Practice

Sixth Edition

Gerald Cole

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THOMSON • Australia . Canada . Mexico · S,ngapore · Spa,n • Umted KJIlgdom • United States

( 0'\ 11 '\ I"

Preface N01es on the Sixth Edition

Acknowledgements

Glossary of Management Terms

Part One: Management Theory

Introduction

Chapter 1: Developments in Management Theory 1910-2000

Chapter 2: Definitions of Management

Questions for Discussion/Homework

Examination Question

Classical Theories of Management

Chapter 3: The Search for Principles of Management

Chapter 4: Max Weber and the Idea of Bureaucracy

Questions for Discussion/Homework

Examination Questions

Human Relations and Social Psychological Theories

Chapter 5: Motivation - The Early Theorists

Chapter 6: Motivation - Later Theorists

Questions for Discussion/Homework

Examination Questions

Theories of leadership and Group Behaviour

Chapler 7: leadcrship - Theory and Practice

Chapter 8: Groups and Group Behaviour

Questions for Discussion/Homework

Examination Questions

• Systcms and Contingency Approaches to ManagcmcnI Thcory

Chaptcr 9: Organisations as Systems

Chaptcr 10: Contingency Approaches to Management

Questio"s for Discussion/Homework

Examination Questions

Modern Approachcs to Management Theory

Chapter 11: Modem Approaches to Managemcnt

Questions for Discussion/Homework

Vl1l

x

3

3

6

12

12

13

13

25 28 28

30 30 42 50 51

52 52 62 72

73

74 74 82 89 89

90

90

94

v

Contents

Part Two: Management in Practice

The Context of Management

Chapter 12: Business Organisations and Corporate Governance

Chapter 13: Developing an Organisation Culture

Chapter 14: Women in Management

Chapter 15: The International Context of Managemenl

Questions for DisCltssionlHomework

Examination Question

Management Planning

Chapter 16: Strategic Aspects of Management

Chapter 17: Objectives, Policies and Organisational Ethics

Chapter 18 : Performance Standards in Managemenl

Chapter 19: Decision-making in Organisations

Chapter 20: Human Resource Planning

97 97

104 11 3 120 134 135

136 136

147 157 165 168

Chapter 21: Work Structuring, Job Design and Business Process Rc-engineering 174

Questions for DiSCltssionlHomework 182

Examination Questions 182

Organising for Management

Chapter 22: Organisation Structures

Chapter 23: Delegation and Empowerment

Chapter 24: Managing Change: Key Concepts

Chapter 25: Implementing Change: Organisation Development

Chapter 26: Communication in Organisations

Chapter 27: Time Management and Personal Effectiveness

Questions for DisCltSSlonlHomework

Examination Questions

Control in Management

Chapter 28: Controlling Performance

Chapter 29: Quality Standards and Management

Chapter 30: The Role of Information Technology

Questions for Discuss;Oft/Homework

Examination Questions

Part Three: Functional Management: Marketing, Production. Personnel and Financial

184 184 199 204 212 no 230 238

238

240 240 251 257

264 264

Marketing Management 267

Chapter 31: The Marketing Concept, Competitiveness and the Global

Dimension 267

Chapter 32: The Marketing Mix: Product and Pri ce 272

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Chapter 33: The Marketing Mix: Promotion

Chapter 34: The Marketing Mix: Distribution

Chapter 35: Marketing Research

Chapter 36: Marketing Organisation

Chapter 37: Customer Services and Consumer Protection

Questions for DisCl/ssiOtllHomcwork

Examinatioll Questiolts

Production Management

Chapter 38: Production Planning and Control

Chapter 39: Types of Production

Chapter 40: Aids to Production

Chapter 41: New Technology in Manufacturing

Questions for DisCl/ssionlHomcwork

Examinatiml Questions

Personnel Management

Chapter 42: Human Resource Management

Cbapter 43: Recruitment and Selection

Chapter 44: Employee Development and Training

Chapter 45: Performance Appraisal, Discipline and Grievances

Chapter 46: Developing Managerial Competencies

Chapter 47: Stress Management and Employee Counselling

Chapter 48: Job Evaluation

Chapter 49: Employee Relations and Collective Rights

Chapter 50: Legal Aspects of Employment - Individual Rights

Qucstiolls for D'SClISsiolllHomework

Examillatioll Qllestio,ts

Financial Aspects of Management

Chapter 51: Company Accounts

Chapter 52: BudgelS, Forecasts and Business Plans

Appendices

A 1: Examination Technique

Al: Outline Answers to Examination Questions

A3: Examination Questions for Practice

Bibliography

Useful Web sites

Index

Contents

277

285 291

294

299

304

304

306

306

315 3 19

325 332

333

334

334

338 349

360

371

382

389 393

407

420

421

422

422

427

435

436

470

473

476

478

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",>I X

ACAS (Advisory, Conciliation and Arbitration Service) 4 J 9

Achievement motivation 41 Action research 208 Admr, j. 58, 70 Administration 8 Advertising 278 Advertising effectiveness 280 Analytical estimating 323 Andrews, K. 140 AI/sof, H. I. 140,166 Application forms 342 Appraisal forms 354,362 et seq. Appraisal styles 367 Argyris, Chris 40 Articles of Association 99 Asserriveness 235,385 Asron group 87, 186 Attribution theory 46 Authority 198 Autonomous work groups 177

Balance sheet 425 Bales R. r: 67 Ballots (Trade Union ) 406 Batch production 86,316 Belbill, R. M. 7 1 Benchmarks (management) 374 Blake, R. and Moulol1. j. 378 Borden, Professor Neil 272 Boredom 175 Boston Consulting Group (BCG) 141 Break-even analysis 244 Break-even chart 245 Brech, E. F. L 23 British Standard 254 British Standards Institution 302 Budgets 243,427 et seq. Bureaucracy 4,25 et seq. Bums. T. and Stalker,]. 84 Business plans 154,431 Cl seq. Business Process Re-engineering 178

CAD/CAM system 330 Cash flow statement 426, 430

478

Centralisation versus de-centralisation 193

Chairing meetings 224 Chandler, A. D. 139 Cla ssical theories 4 Closed systems 74 et seq. C/lltterbJlck, D. 203 Cole. Cerald 3D, 185 Cole. Robert 48 Collective agreements 396,404 Comminees 227 Communication barriers 226 Communication channels or networks

221 Communication in organisations

221 etseq. Company directors 99 Competence and competencies 163 Competitive advantage 91,142,271 Competitive forces 269 Computer-aided design 327 Computer-aided design/manufacture

325 et seq. Computer-aided engineering 331 Computer-aided manufacture 327 Computer-integrated manufacture 330 Computers 257 Consumer protection 299 et seq. Contingency approach to managemem

58, 82 et seq. Contingency theory of leadership 59 Control 240 et seq. Control sequence 241 Cooperative enterprises 103 Corporate governance 101 Corporate objectives 149 Corporate planning 148 COJl/soll-Thomas. C 180 Counselling, employet' 387 CovtJ" S. 59,237 Cultural differences 129 et seq.

Data Protection Act 1998 262 Decision-making 165 et seq. Decision-making tools 167

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Decision tree 168 Delegation 200 et seq. Deming, W. E. 253 Disciplinary procedure 368 Disputes procedures 398 Distribution channels 285 Dmcker, Peter 9,361

Easterby-Smith, M. 380 Egatl, C. 388 Emery, F. and Trist, E. L 79 Employee-directors 403 Employee participation 402 Employee relations 393 Employers' associations 401 Employment contract 408 Employment tribunals 419 Empowerment 199,203 Equity theory 44 Ethics in business ISO et seq. European Union 121 Evaluation of (raining 357 Expectancy theory 43 Experiential methods of training 377,

379

Fayol, Henr! 13 et seq. Fied/er, r. E. 59 Flexible Manufacturing System (FMS)

328 Flowcharts 32 1 Follett. Mary Parker 34 Force-field theory 207 Fraser. J. Mllnro 340 French, j. and Raven, B. 199

Gann charts 21 Cat/tt, Henry 20 Ci/breth, Frank and Liliall 19 Glass ceiling 11 7 Glocalisation 270 Goal theory 45 Craiwnas. V. A. 202 Grievance proc{'dures 369 Group behaviour 62 et seq. Group cohesiveness 63 Group effectiveness 65 Group motivation 66 Group norms 63

Index

Hambfin, A. 357 Hamel, C. and PraiJalad, C K. 359 Hammer, M. and Champ)~ J. 178 Hat/dy, C. 9, SO, 104, 185 Harassment 386 Hawthorne studies 32 et seq. Health and safety 41 7 Herzberg, F. 37 Hierarchy of needs 35 Hafer, C W': J 43 Hafstede, C. 107, 129 Holmes T. a1ld Rahe, R. 382 Human Resource Management

334 et seq. Human Resource Planning Cycle 170 Huma n rights 409

Information technology (IT) 257 et seq. InspectIOn j I j Intelligence tests 347 Internet 259 Inventory, or stock control 250 fslJlkalUo, K. 254

Japanese management practices 124 et seq.

Jobdcsign 175 Job en largement 177 Job enrichment 176 Job evaluation 389 et seq. Job evaluation methods 390 Jobbing production 315 jllrall,j. 252 Just-in-Time systems urf) 312

Kallter, R. M. 206 Katz alld Kahn 77, 8 1 Kotle" P. 267, 269 Kotter, j. 10,219

Large batch and mass producrion 86,3 16 Lawrel/ce Q/ld Lorsch 82, 185 Leadership 52 et seq. Leadership styles 55 et seq. Leadership variables 53 Learning organ isation 358 Lewm, Professor Kllr! 67,207 Likert, Rellsis 39 Limited companies 98

479

lndex

Line and staff 196 Lucey, T. 242

Maier, N. 367 Maintenance 314 Management by objectives 162 Management development 371 et seq. Management development audit 380 Management development methods 376 Management information system

IM (5 ) 242 Management Standards (the ) 374 Management succession chart 380 Managerial grid 378 Manpower planning process 170 Market segmentation 287 Marketing concept 267 et seq. Marketing department 297 Marketing mix 272 et seq. Marketing research 291 et seq. Marketing structures 295 Maslow, Abraham 35 Mass production 86, 3 16 Material Requiremenls Planning 312 Matrix structures t 92 Mayo, Eltoll 32 McGregor. Douglas 36, 65,362 Mechanistic systems 84 Memorandum of Association 98 Method study 320 Michigan stud ies 56 Minzherg, Henry 136, 184 Morgan, G. 104 Motivation 30 et seq. Motivation-Hygiene theory 37 et seq. Multinational enterprises 128

National minimum wage 411 Negotiations (employer-Trade Union)

396 Network analysis 248 Non-executive directors 99

Ohio studies 56 Ohmae, K. 137 Open systems 74 et seq. Operational Research (O R) 247 Organic systems 84 Organisation culture 104 et seq.

480

Organisation development (OD) 212etseq.

Organisation levels 194 Organisation StruCtu res 189 et seq. Organisational change 205 Organisations (definition ) 8, 74 Ouchi, \V 48

Partnerships 102 Pay claims 397 Pedler, M. et af 373 Performance appraisal 360 et seq. Performance appraisal (360°) 36 1 Personal effectiveness 237 Personal selling 281 Personnel management 336 et seq. Personnel specification 340 Peters, Tom 210 Picketing 406 Policy-making 150 Porter, M. E. 142,270 Power 198 Predetermined Motion Time Study

(PMT5) 323 Presenta tions 225 Pricing 276 Principle-centreclleadership 59 Product lifecycle 275 Production categories 317 Production organisation 306 Production planning 308 Programmable conrrollers 329 Programme Evaluation and Review

Technique (PERT) Promotion (marketing) 277 et seq. Psychological tests 347 Publicity 284 Purchasing 309 Purchasing mix 311

Quality ci rcles 126,324 Quality control 251 et seq.

Race relations 416 Rackham and Morgan 68 Ratios 245 Recruitment and selection 338 Recruitment checklist 339 Reddm, \V 10

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Redundancy 412 Reinforcement theory 47 Report-writing 223 Responsibility 198 Rice, A. K. 79 Rice, j. 127 Robots 328 Rodger, A. 340 Role set 233

Sales promotion 283 Scbeill, Professor Edgar 106,208 Schelldel, D. E. 143 Scientific management 17 et seq. Selection interview 342 Selection interviewing - guide to good

pra~tice 345 Senge, I~ 358 Sex differences at work 115 et seq. Sex discrimination 416 Shareholder theory 149 Sherif, M. 69 Silicon chip 258 Simulation 249 Sklllller, B. F. 47 Social Charter 122 et seq. Social responsibility 152 er seq. Socio-technical systems 79 Sole traders 102 Span of control 202 Stakeholder theory 149 Stewart, R. 374 Stock control 312 Strategic management 141 Stress (sources of) 382 Stress management 382 et seq. Stricklalld, A. J. 144 Succession planning 380 SWOT analysis 155 Systems approaches 5,74 et seq.

Taleou, Parsons 131 Taflllenballm and Se/mlid! 55 Tavistock Group 79 et seq. Tay/or, F. W. 16

Index

Team roles 70 et seq. Telecommunications 259 Theory X 36 Theory Y 36 Theory Z 47 Therbligs 20 Third party roles 216 Thompsoll, A. 144 Thurow, L. 91 Time management 230 et seq. Time study 322 Time-wasters 231 Total quality control 253 Trade dispute 405 Trade marks 303 Trade Union 398 Trade Union Congress (TUC) 40 1

Training methods 356 Training needs analysis 352 Training plans 355 Trist and Bamforth 79 Troml)ellaars, F. and Hampdell- Tumer, C.

131 Tllckman, 8. 63

Unfair dismissal 412 Unit/small batch, large batch/mass produc­

tion 316 Urwick, LYlldall F. 22,202

Value analysis (value engineering) 324 Vroom, H. 43

WaTT, P. et 0/ 357 \Vaterma1l, R. 210 Weber, Mox 25 Women in management 113 et seq. Woodcock, M. 64 Wloodward, JOo/l 85 et seq., 317 Work design 174 Work measurement 321 Workers' Co-operatives 403 Work place representatives 401 Works councils 403

481