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Preface xii
Acknowledgements xv
About the Authors xvi
Chapter 1 Managers and Management 2Who Are Managers and Where Do They Work? 4
What Four Characteristics Do All Organisations Share? 4
How Are Managers Different from Non-managerial Employees? 5
What Titles Do Managers Have? 5
From the Past to the Present 1588–1705–1911–Today 6
What Is Management? 7
What Do Managers Do? 8What Are The Four Management Functions? 8
What Are Management Roles? 9
What Characteristics Do Managers Need? 10
Is the Manager’s Job Universal? 11
A Question of Ethics 14
Why Study Management? 14
What Factors Are Reshaping and Redefining Management? 14
Why Are Customers Important to the Manager’s Job? 14
Technology and the Manager’s Job | Is it still managing when what you’re managing are robots? 15Why Are Ethics and Social Responsibility Important to a Manager’s Job? 16
Importance of Social Media to the Manager’s Job 16
Why Is Sustainability Important to the Manager’s Job? 16
Review
Chapter Summary 18 • Discussion Questions 18 • Management Skill Builder | Understanding Conflict Resolution 19 • Case Application 1—Google—Building a Better Boss 21 • Case Application 2—Managing to Create a Better World 22 • Endnotes 23
History Module: A Brief History of Management’s Roots 25
Early Management 25
Behavioural Approach 26
Classical Approaches 27
Quantitative Approach 28
Contemporary Approaches 29
Endnotes 30
Chapter 2 The Managerial Environment 32What is the External Environment of an Organisation? 34
What is the General Environment of an Organisation? 34
Technology and the Manager’s Job | Changing and improving the way managers manage 36What is the Specific Environment of an Organisation? 37
How Does the External Environment Affect Managers? 40
From the Past to the Present 41
What Is Organisational Culture and Why Is It Important? 42
A Question of Ethics 43
How Does Organisational Culture Affect Managers? 43Review
Chapter Summary 45 • Discussion Questions 45 • Management Skill Builder | Understanding Culture 46 • Case Application 1—Tragedy in Fashion 48 • Case Application 2—Getting a Boost 49 • Endnotes 50
Ethics and Social Responsibility Module: Managing Socially Responsible and Ethical Behaviour 52
What Is Social Responsibility? 52
How Do Organisations Define Their Social Responsibilities? 52
Should Organisations Be Socially Responsible? 53
How Can Managers Identify the Ethical Thing To Do? 54
What Factors Influence Ethical and Unethical Behaviour? 55How Can Managers Encourage Ethical Behaviour? 56
Endnotes 58
Chapter 3 Foundations of Decision Making 60How Do Managers Make Decisions? 62
What Defines a Decision Problem? 62
What Is Relevant in the Decision-Making Process? 63
How Does the Decision Maker Weight the Criteria and Analyse Alternatives? 63
What Determines the Best Choice? 64
Content highlighted in blue indicates that it is presented via a visual spread.
Detailed Contents
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What Happens in Decision Implementation? 65
What Is the Last Step in the Decision Process? 65
What Common Errors Are Committed in the Decision-Making Process? 65
What Are the Three Approaches Managers Can Use to Make Decisions? 67
What is the Rational Model of Decision Making? 67
From the Past to the Present 1945–1978–Today 68What is Bounded Rationality? 68
What Role Does Intuition Play in Managerial Decision Making? 68
Technology and the Manager’s Job | Making better decisions with technology 69
What Types of Decisions and Decision-Making Conditions Do Managers Face? 70
How Do Problems Differ? 70
How Does a Manager Make Programmed Decisions? 70
How Do Non-programmed Decisions Differ from Programmed Decisions? 71
How Are Problems, Types of Decisions and Organisational Level Integrated? 71
What Decision-Making Conditions Do Managers Face? 72
How Do Groups Make Decisions? 73What Are the Advantages and Disadvantages of Group Decision Making? 73
When Are Groups Most Effective? 74
How Can You Improve Group Decision Making? 75
A Question of Ethics 75
What Contemporary Decision-Making Issues Do Managers Face? 76
How Does National Culture Affect Managers’ Decision Making? 76
Why Are Creativity and Design Thinking Important in Decision Making? 77
Review
Chapter Summary 79 • Discussion Questions 80
Management Skill Builder | Being a Creative Decision Maker 80 • Case Application 1—Lift Off 82 • Case Application 2—Big Data—Better Decisions or Big Headache? 83 • Endnotes 84
Chapter 4 Foundations of Planning 88What Is Planning and Why Do Managers Need to Plan? 90
Why Should Managers Formally Plan? 90
What Are Some Criticisms of Formal Planning and How Should Managers Respond? 91
Does Formal Planning Improve Organisational Performance? 92
What Do Managers Need to Know About Strategic Management? 93
What Is Strategic Management? 93
Why Is Strategic Management Important? 93
What Are the Steps in the Strategic Management Process? 93
What Strategic Weapons Do Managers Have? 97
Technology and the Manager’s Job | IT and strategy 97
How Do Managers Set Goals and Develop Plans? 98What Types of Goals Do Organisations Have and How Do They Set Those Goals? 98
From the Past to the Present 1954–1960s and 1970s Present 100What Types of Plans Do Managers Use and How Do They Develop Those Plans? 101
What Are Some Popular Planning Tools? 104
What Contemporary Planning Issues Do Managers Face? 107
How Can Managers Plan Effectively in Dynamic Environments? 107
How Can Managers Use Environmental Scanning? 108
A Question of Ethics 108How Can Managers Use Benchmarking? 108
Review
Chapter Summary 109 • Discussion Questions 109 • Management Skill Builder | Being a Good Goal Setter 110 • Case Application 1—A Stand-Out Success 111 • Case Application 2—Spy Games 112 • Endnotes 113
Chapter 5 Organisational Structure and Design 116
What Are the Six Key Elements in Organisational Design? 118
(1) What Is Work Specialisation? 118
(2) What Is Departmentalisation? 119
(3) What Are Authority and Responsibility? 121
(4) What Is Span of Control? 125
A Question of Ethics 126(5) How Do Centralisation and Decentralisation Differ? 126
(6) What Is Formalisation? 126
From the Past to the Present 1965–1967–1984–Present 127
How is a Mechanistic Organisation Different from an Organic Organisation? 127
What Contingency Variables Affect Structural Choice? 128How Does Strategy Affect Structure? 128
How Does Size Affect Structure? 129
How Does Culture Influence Structure? 129
How Does Technology Affect Structure? 129
How Does the Environment Affect Structure? 129
What Are Some Common Organisational Designs? 129
What Traditional Organisational Designs Can Managers Use? 129
What Contemporary Organisational Designs Can Managers Use? 132
What Are Today’s Organisational Design Challenges? 134
How Do You Keep Employees Connected? 134
Technology and the Manager’s Job | The changing world of work 135How Should Managers Delegate? 135
How do you Delegate Effectively? 136
How Do Global Differences Affect Organisational Structure? 137
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What Is Change and How Do Managers Deal with It? 190Why Do Organisations Need to Change? 191
Who Initiates Organisational Change? 192
How Does Organisational Change Happen? 192
From the Past to the Present 1943–1944–1947–Present 193
Reasons Why Change Fails 196What Are Some Techniques for Overcoming Barriers to Organisational Change? 197
What Reaction Do Employees Have to Organisational Change? 198
What is Stress? 198
What Are the Symptoms of Stress? 199
What Causes Stress? 199
How Can Stress Be Reduced? 200
A Question of Ethics 201Review
Chapter Summary 202 • Discussion Questions 202 • Management Skill Builder | Controlling Workplace Stress 203 • Case Application 1—Turning Coles Around 205 • Case Application 2—Dreamliner Nightmare 206 • Endnotes 207
Chapter 8 Foundations of Individual Behaviour 210What Are the Focus and Goals of Organisational Behaviour? 212
What Is the Focus of OB? 212
What Are the Goals of Organisational Behaviour? 212
What Role Do Attitudes Play in Job Performance? 213What Are the Three Components of an Attitude? 213
What Attitudes Might Employees Hold? 214
Do Individuals’ Attitudes and Behaviours Need to Be Consistent? 214
What Is Cognitive Dissonance Theory? 214
Technology and the Manager’s Job 215How Can an Understanding of Attitudes Help Managers Be More Effective? 216
What Do Managers Need to Know About Personality? 217
How Can We Best Describe Personality? 218
Can Personality Traits Predict Practical Work-Related Behaviours? 220
A Question of Ethics 221How Do We Match Personalities and Jobs? 221
Do Personality Attributes Differ Across Cultures? 222
How Can an Understanding of Personality Help Managers Be More Effective? 222
What Is Perception and What Influences it? 223What Influences Perception? 223
How Do Managers Judge Employees? 224
How Can an Understanding of Perception Help Managers Be More Effective? 226
How Do Learning Theories Explain Behaviour? 227What is Operant Conditioning? 227
From the Past to the Present 1927–1971–Present 227What Is Social Learning Theory? 228
How Do You Build a Learning Organisation? 138
How Can Managers Design Efficient and Effective Flexible Work Arrangements? 139
Review
Chapter Summary 141 • Discussion Questions 141 • Management Skill Builder | Increasing Your Power 142 • Case Application 1—Stores and More 143 • Case Application 2—Shortening the Corporate Ladder 145 • Endnotes 146
Chapter 6 Managing Human Resources 150What Is the Human Resource Management Process and What Influences It? 152
What Is the Legal Environment of HRM? 153
How Do Managers Identify and Select Competent Employees? 155
From the Past to the Present 1913–Present 1551 What Is Employment Planning? 155
2A How Does a Manager Reduce Their Workforce? 157
2B How Do Organisations Recruit Employees? 157
3 How Do Managers Select Job Applicants? 158
How Are Employees Provided with Needed Skills and Knowledge? 162
How Are New Employees Introduced to the Organisation? 162
What Is Employee Training? 162
Technology and the Manager’s Job | Digital HR 163
How Do Organisations Provide a Safe Working Environment? 165
A Question of Ethics 165
How Do Organisations Retain Competent, High-Performing Employees? 166
What is a Performance Management System? 166
What Happens If an Employee’s Performance Is Not up to Par? 168
How Are Employees Compensated? 168
What Contemporary HRM Issues Face Managers? 170How Can Managers Manage Downsizing? 170
How Can Workforce Diversity Be Managed? 171
What Is Sexual Harassment? 172
What is Career Development? 173
Review
Chapter Summary 175 • Discussion Questions 175 • Management Skill Builder | Being An Effective Interviewer 176 • Case Application 1—Managing Diversity at PwC 178 • Case Application 2—Producing CHAMPS at KFC 179 • Endnotes 180
Chapter 7 Managing Change and Innovation 184How Can Managers Encourage Innovation in an Organisation? 186
How Are Creativity and Innovation Related? 186
How Can Organisations Stimulate Creativity? 186
What’s Involved in Turning Creativity into Innovation? 187
Technology and the Manager’s Job 187How Can a Manager Foster Innovation? 188
How Does Design Thinking Influence Innovation? 189
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What Are McGregor’s Theory X and Theory Y? 276
What Is Herzberg’s Two-Factor Theory? 276
From the Past to the Present→1959–1977–Today 277
How Do the Contemporary Theories Explain Motivation? 277
What Is Goal-Setting Theory? 278
How Does Job Design Influence Motivation? 279
What Is Equity Theory? 281
How Does Expectancy Theory Explain Motivation? 282
How Can We Integrate Contemporary Motivation Theories? 283
What Current Motivation Issues Do Managers Face? 284How Can Managers Motivate Employees During Difficult Economic Times? 284
How Does Country Culture Affect Motivation Efforts? 285
How Can Managers Motivate Unique Groups of Workers? 286
How Can Managers Design Appropriate Rewards Programs? 288
A Question of Ethics 290Review
Chapter Summary 291 • Discussion Questions 291 • Management Skill Builder | Being a Good Motivator 292 • Case Application 1—Battling Bugs and Vanquishing Viruses 295 • Case Application 2—Netflix: Bringing the ‘A’ Game to Australia 296 • Endnotes 297
Chapter 11 Leadership and Trust 302Who Are Leaders, and What Is Leadership? 304
What Do Early Leadership Theories Tell Us About Leadership? 304
What Traits Do Leaders Have? 304
What Behaviours Do Leaders Exhibit? 304
From the Past to the Present 1951–1960–Today 307
What Do the Contingency Theories of Leadership Tell Us? 309
What Was the First Comprehensive Contingency Model? 309
How Do Followers’ Willingness and Ability Influence Leaders? 310
How Participative Should a Leader Be? 311
How Do Leaders Help Followers? 312
What Is Leadership Like Today? 313What Do the Four Contemporary Views of Leadership Tell Us? 313
What Issues Do Today’s Leaders Face? 316
Technology and the Manager’s Job | Virtual leadership 317
Why Is Trust the Essence of Leadership? 319A Final Thought Regarding Leadership 321
A Question of Ethics 321Review
Chapter Summary 322 • Discussion Questions 323 • Management Skill Builder | Being a Good Leader 323 • Case Application 1—Gearing Up and Reaching Out 325 • Case Application 2—Rebuilding Trust at the Top 326 • Endnotes 327
How Can Managers Shape Behaviour? 228
How Can an Understanding of Learning Help Managers Be More Effective? 229
What Contemporary OB Issues Do Managers Face? 229How Do Generational Differences Affect the Workplace? 229
How Do Managers Deal with Bullying in the Workplace? 231
Review
Chapter Summary 233 • Discussion Questions 234 • Management Skill Builder | Understanding Employee Emotions 234 • Case Application 1—Wild Mob: Making a Difference in Australia’s Wilderness 236 • Case Application 2—Beyondblue: Changing Minds and Mindsets 237 • Endnotes 238
Chapter 9 Understanding Groups and Managing Work Teams 244
What Is a Group and What Stages of Development Do Groups Go Through? 246
What Is a Group? 246
What Are the Stages of Group Development? 246
What Are the Major Concepts of Group Behaviour? 248
What Are Roles? 248
How Do Norms and Conformity Affect Group Behaviour? 248
From the Past to the Present 1951–Today 249What Is Status and Why Is It Important? 249
Does Group Size Affect Group Behaviour? 250
Are Cohesive Groups More Effective? 250
How Are Groups Turned into Effective Teams? 251Are Work Groups and Work Teams the Same Thing? 252
What Are the Different Types of Work Teams? 252
Technology and the Manager’s Job | IT and teams 253What Makes a Team Effective? 254
A Question of Ethics 256How Can a Manager Shape Team Behaviour? 258
What Current Issues Do Managers Face in Managing Teams? 259
What’s Involved with Managing Global Teams? 259
When Are Teams Not the Answer? 260
Review
Chapter Summary 262 • Discussion Questions 262 • Management Skill Builder | Understanding How Teams Work 263 • Case Application 1—Working Together Anywhere, Anytime 265 • Case Application 2—Intel Inside . . . and Far Away 266 • Endnotes 267
Chapter 10 Motivating and Rewarding Employees 272
What Is Motivation? 274
What Do the Early Theories of Motivation Say? 274What Is Maslow’s hierarchy of Needs Theory? 274
What Is McClelland’s Three-Needs Theory? 275
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3 What Managerial Action Can Be Taken? 365
What Should Managers Control? 366When Does Control Take Place? 366
In What Areas Might Managers Need Controls? 367
Technology and the Manager’s Job 368
What Contemporary Control Issues Do Managers Confront? 370
Using Feedback to Control Employee Performance 370
Do Controls Need to Be Adjusted for Cultural Differences? 371
What Challenges Do Managers Face in Controlling the Workplace? 371
Controlling Workplace Conflict 372
Review
Chapter Summary 376 • Discussion Questions 376 • Management Skill Builder | Providing Good Feedback 377 • Case Application 1—In the Can 379 • Case Application 1—Top Secret 380 • Endnotes 381
Entrepreneurship Module: Managing Entrepreneurial Ventures 383
What Is Entrepreneurship? 383
Who’s Starting Entrepreneurial Ventures? 384
What Do Entrepreneurs Do? 384
What Planning Do Entrepreneurs Need to Do? 385What’s in a Full Business Plan? 385
What Issues Are Involved in Organising an Entrepreneurial Venture? 386What Are the Legal Forms of Organisation for Entrepreneurial Ventures? 386
What Type of Organisational Structure Should Entrepreneurial Ventures Use? 387
What Human Resource Management (HRM) Issues Do Entrepreneurs Face? 387
What Issues Do Entrepreneurs Face in Leading an Entrepreneurial Venture? 388How Can Entrepreneurs Motivate Employees? 388
How Can Entrepreneurs Be Leaders? 389
What Controlling Issues Do Entrepreneurs Face? 389How Is Growth Managed? 389
How Are Downturns Managed? 389
What’s Involved with Exiting the Venture? 390
Why Is It Important to Think About Managing Personal Challenges as an Entrepreneur? 390
Endnotes 391
Glossary 000
Index 000
Chapter 12 Communication and Interpersonal Skills 332
How Do Managers Communicate Effectively? 334How Does the Communication Process Work? 334
Are Written Communications More Effective Than Verbal Ones? 336
Is the Grapevine an Effective Way to Communicate? 336
From the Past to the Present➞1953–2009–Today 337How Do Non-verbal Cues Affect Communication? 337
What Barriers Keep Communication from Being Effective and How Can They Be Overcome? 338
How Can Managers Overcome Communication Barriers? 341
A Question of Ethics 341
How is Technology Affecting Managerial Communication? 342
Technology and the Manager’s Job | FYEO: decoding communication jargon 344
What Communication Issues Do Managers Face Today? 344
How Do We Manage Communication in an Internet World? 344
How Does Knowledge Management Affect Communication? 345
What’s Involved with Managing the Organisation’s Knowledge Resources? 345
What Role Does Communication Play in Customer Service? 346
How Can We Get Employee Input? 347
How Should Managers Communicate when Negotiating? 347
Why Should Managers Be Concerned with Communicating Ethically? 349
Review
Chapter Summary 350 • Discussion Questions 350 • Management Skill Builder | Being a Good Listener 351 • Case Application 1—Banning Email 353 • Case Application 2—When SMS = Sexist, Mean and Stupid 354 • Endnotes 355
Chapter 13 Foundations of Control 358What Is Control and Why Is It Important? 360
What Is Control? 360
Why Is Control Important? 360
A Question of Ethics 361
What Takes Place as Managers Control? 3611 What Is Measuring? 362
2 How Do Managers Compare Actual Performance to Planned Goals? 364
From the Past to the Present 1911–1913–1979–Today 364
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Preface
A short note to students
What this book is about and why it’s importantThis book is about management and managers. Managers are one thing that all organisations – no matter the size, kind or location–need. This means that whatever you do in your career you will either manage someone else or be managed yourself. So the better you understand what managers do, the better you’ll be able to find good managers to work with and to be a good manager yourself. Put simply: learning about management is going to help you be more successful.
Our goal is to provide you with the essentials for understanding what it means to be a manager. There’s no doubt that the world that managers face has changed, is changing and will continue to change. This means that you’ll keep learning more about management throughout your career. This book will give you the best possible foundation for developing your knowledge about management and for understanding how to apply the ideas you come across to handle the challenges that managers face. To help you learn as effectively as possible we’ve adopted four key principles for this book:
1. Introduce you to the essential management principles, theories and practices. 2. Show you how understanding management will be relevant and valuable to you. 3. Make this textbook interesting and engaging so it is easier for you to learn.4. Help you develop your own managerial style and skills.
Getting the most out of your textbook: how can I get a good mark in my course?Lecturers use a textbook because it provides a compact source of information that you need to know about the subject material. This particular textbook covers the essential concepts of management and does so with a writing style that you will find interesting and straightforward.
In addition to the discussions and explanations of these management concepts, we provide several ways to help you learn effectively and get a good mark in your course. At the end of each chapter, you’ll find a ‘Chapter summary’, which provides you with a brief overview of the chapter material organised by the chapter learning outcomes. In addition to this review, you’ll find options for applying what you’ve learned–reinforcing the concepts and seeing how they’re relevant to you right now. Complete the Management Skill Builder to learn more about yourself and what your management style might be like. Then, read through the ‘Case application’ you’ll find at the end of the chapter. These stories come from current or recent business news and help illustrate the challenges managers face. Your lecturer may even assign some of these as homework. Finally, utilise the quizzes and cases on the companion website for this text: www.
pearson.com.au/highered/robbins. These great tools will help you learn and understand the management concepts covered in this book and in your class. Good luck in this course!
A short note to instructors
The approach we’ve taken to help your students learn This book has been designed to help students understand management concepts, recognise those concepts when they encounter them in everyday life and apply what they have learned
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to develop new insights, understanding and solutions. To help students learn as effectively as possible, we’ve adopted three key principles for this book. We want to show students how the material is relevant and valuable to them. We want students to be able to use what they learn to make sense of the organisations they experience and the managers they work with. Most importantly, we want to help students apply the approaches they learn about to become the kind of manager they want to be.
Show students how understanding management will be relevant and valuable to them Adult learning theory tells us that students will engage with material and therefore learn more effectively when they understand why the material is relevant and how it is useful to them. So in this book we have developed a number of features to show students how understanding management will be relevant and valuable to them. Chapter introductions spell out for students the benefits of understanding the chapter. A diverse range of examples from business, not-for-profit organisations and public sector agencies illustrates that students will benefit from understanding effective management, whatever career directions they take. To reinforce and enhance the value of learning about management, we have also included a number of chapter features to help students develop their own managerial style and skills. The Management Skill Builder feature helps students develop and practise key managerial skills. We hope these features will help students understand how to use what they are learning to become better managers in the future.
Make this textbook accessible and engaging so it is easier for students to learnWhen we researched what students valued in a management textbook they told us they valued features that made the text accessible and engaging. So, we have used simple and straightforward language to help students easily understand the material and feel more confident about studying management. As students vary so widely in their levels of English literacy, using accessible language means they can spend less time deciphering the terminology and more time learning the theory. We have not ‘dumbed down’ the material; we have just explained it as simply and clearly as we can. We have included models, tables, figures and images to create visual interest and vary the presentation of material. We have emphasised organisations and situations with which students can identify, such as planning a musical festival and working in volunteer organisations. We have used thought-provoking issues such as workplace bullying and generational differences in the workplace to encourage students to think critically about practices they may take for granted.
Provide concise coverage of essential management principles, theories and practices When we asked students how textbooks supported their learning they told us they used their text as the ‘gospel’ version of what they needed to know. So, we have provided concise yet detailed explanations of management theory and practice which can stand alone or provide a foundation on which you can build. We have outlined the historical development of management concepts so students understand how ideas about management have developed over time. The History module includes a visual timeline of the history of management. The ‘From the past to the present’ feature showcases key contributors to the development of management theory. We have focused our presentation of cases and examples on showing students how management concepts are applied in practice. We have emphasised contextual influences to help students understand when and how managers adapt their approaches. We have also included a number of chapter features which highlight aspects of contemporary management. The ‘Technology and the manager’s job’ feature discusses how technology is changing the manager’s job. The ‘Managing diversity’ feature focuses on diversity issues in organisations and reinforces to students that diversity influences every aspect of a manager’s job. The ‘ Managing for sustainability’ feature highlights sustainability issues related to the economic, social and environmental impacts of organisational activities to help students understand the complexities and trade-offs involved in managing sustainability in an organisation setting.
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Getting the most out of this textbook: helping you deliver your courseAs course instructors, we know that adopting a new text means updating teaching materials, class activities and assessments. So we have provided a range of resources to make this book a worthwhile addition to your course. We have ensured that our coverage of core topics is competitive and covers sufficient breadth to support the focus of your course. New issues and ideas are always confronting managers and we’ve made sure to cover hot topics such as social media, big data, design thinking, and managing mental health in the workplace to name a few. We have also made the cases, features and activities useful for a wide range of teaching applications. Each chapter concludes with two case applications which highlight key issues from the chapters and have been written for use in class discussions or for assessment purposes. So you can alternate the case you use for each semester or use one case as a class activity and another as an assessable case study. If your course emphasises critical thinking and problem solving, then you can use the chapter cases and ‘Right or wrong?’ dilemmas for discussions and debates. Features such as Management Skill Builder quizzes also provide useful activities for class discussions in lectures, workshops or tutorials. We've also introduced brand new, exciting, and innovative chapter openers—a Fact or Fiction questions about a common management myth. Students often think that they already know a lot about management . . . after all, it’s just common sense, right? But management isn’t just common sense! When it comes to managing, much of what passes for common sense is just plain wrong. So our new chapter openers grab students’ attention by introducing common misconceptions about management and then debunking them. Of course, there is also a suite of other support available on the companion website www.pearson.com.au/highered/
robbins, which is detailed below.
Instructor’s manualTK
Computerised testbankTK
Powerpoint slidesTK
Go ahead. Get experienced.Good luck this semester and we hope you enjoy reading this book as much as we enjoyed writing it for you.
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