Unit 1 Target Company Cyber Attack Case Discussion The Complete sections should have a minimum word count (total per week) of 800 words and three scholarly

Unit 1 Target Company Cyber Attack Case Discussion The Complete sections should have a minimum word count (total per week) of 800 words and three scholarly sources. Approved sources for this course include the course textbook and scholarly articles from the Bethel library databases. No other source information is acceptable. NOTHING IS ALLOWED TO BE FROM COURSEHERO THAT WILL CAUSE A ZERO ON THE ASSIGNMENT. EVERYTHING NEEDS TO BE IN OWN WORDS. Case: Target CEO Works to Regain Consumer Trust after the
Company was Hacked
1.From a management perspective, do you think Target made any mistakes? Justify your
answer.
2.Which of the four principal managerial functions were exhibited by CEO Greg Steinhafel
and describe the seven managerial challenges Target is facing. Discuss how Target is handling
these challenges.
3.What is your evaluation of Steinhafel’s ability to effectively execute the three key
managerial roles – interpersonal, information, and decisional?
4.If you were a consultant to Target, what advice would you give to senior management about
handling a crisis like this?
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Angelo Kinicki
Arizona State University
Brian K. Williams
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SEVENTH EDITION
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management
A PRACTICAL INTRODUCTION
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SEVENTH EDITION
management
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A PRACTICAL LINTRODUCTION
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PART 1
1
INTRODUCTION
The Exceptional Manager
What You Do, How You Do It
W
I Should Be Able to Answer
Major Questions You
L
L What It Is, What Its Benefits Are
1.1 Management:
Major Question:
I What are the rewards of being an exceptional
manager?
S
, Do: The Four Principal Functions
1.2 What Managers
Major Question: What would I actually do—that is, what would
be my four principal functions—as a manager?
1.3
1.4
1.5
K
Seven Challenges
A to Being an Exceptional Manager
Major Question:
S Challenges can make one feel alive. What are
seven challenges I could look forward to as a manager?
S
Pyramid Power:
A Levels & Areas of Management
Major Question:
NWhat are the levels and areas of management
I need to know to move up, down, and sideways?
D
The Skills Exceptional
Managers Need
R
Major Question:
ATo be a terrific manager, what skills should
I cultivate?
1.6 Roles Managers
2 Must Play Successfully
Major Question:
1 To be an exceptional manager, what roles must
I play successfully?
1.7
6
The Link between
1 Entrepreneurship & Management
Major Question:
T Do I have what it takes to be an entrepreneur?
S
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the manager’s toolbox
A One-Minute Guide to Success in This Class
Got one minute to read this section? It could mean the difference between getting an A instead of a B. Or a B instead of a C.
It is our desire to make this book as practical as possible for you. One place we do this is in the Manager’s Toolbox,
like this one, which appears at the beginning of every chapter and which offers practical advice appropriate to the
subject matter you are about to explore. Here we show you how to be a success in this course.
Four Rules for Success
The following four rules will help you be successful in this (or any other) course.
•
•
•
•
Rule 1: Attend every class. No cutting (skipping) W
allowed.
Rule 2: Don’t postpone studying, then cram the night
I before a test.
Rule 3: Read or review lectures and readings more than once.
L
Rule 4: Learn how to use this book.
L
I
When reading this book, follow the steps below:
S first page, which contains the section headings
• Get an overview of the chapter by reading over the
and Major Questions.
,
How to Use This Book Most Effectively
•
•
•
•
•
Read “Forecast: What’s Ahead in This Chapter.”
Look at the Major Question at the beginning of each section before you read it.
Ksection.
Read the “The Big Picture,” which summarizes the
Read the section itself (which is usually only 2–6 pages),
trying silently to answer the Major Question.
A
This is important!
S
After reading all sections, use the Key Terms, Key Points, and Understanding the Chapter questions at the
end of the chapter to see how well you know the S
concepts. Reread any material you’re unsure about.
If you follow these steps consistently, you’ll probably A
absorb the material well enough that you won’t have to
cram before an exam; you’ll need only to lightly review it before the test.
N
For Discussion Do you sometimes (often?) postpone
D keeping up with coursework, then pull an “all-nighter” of
studying to catch up before an exam? What do you think happens to people in business who do this?
R
A
2
1
What’s Ahead
in This Chapter
6
1
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We describe the rewards, benefits, and privileges managers might expect. We also deS
foreca
astt
scribe the four principal functions of management—planning, organizing, leading, and
controlling. We discuss the seven challenges to managers in today’s world. We consider
levels and areas of management. We describe the three roles managers must play. We
describe the three skills required of a manager and the three roles managers play. Finally,
we consider the contributions of entrepreneurship.
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4
PART 1
1.1
MAJOR
QUESTION
?
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Introduction
Management: What It Is, What Its Benefits Are
What are the rewards of being an exceptional manager?
THE BIG PICTURE
Management is defined as the pursuit of organizational goals efficiently and effectively. Organizations, or
people who work together to achieve a specific purpose, value managers because of the multiplier effect:
Good managers have an influence on the organization far beyond the results that can be achieved by one
person acting alone. Managers are well paid, with the chief executive officers (CEOs) and presidents of even
small and midsize businesses earning good salaries and many benefits.
W
When Mary Barra was named chief executive officer of Detroit-based General Motors
I
in December 2013, she became the first female CEO of an American or any other
global automaker. She also became
L only the 22nd woman at the helm of a Fortune 500
company, one of those 500 largest U.S. companies that appear on the prestigious anL
nual list compiled by Fortune magazine. (Other big-time female CEOs: IBM’s Virginia
I Mayer, Hewlett-Packard’s Meg Whitman, Xerox’s
“Ginni” Rometty, Yahoo!’s Marissa
Ursula Burns, PepsiCo’s Indra Nooyi.)
S
What kind of a person is Barra (pronounced Bahr-ra), a 30-year GM veteran? “She
has a soft-spoken manner that,belies her intensity on the job,” says one report.1
“She’s the real deal, very down to earth,” says another.2 “Her open, relaxed manner has
marked a clear contrast with the far more uptight style of many of the middle-aged
K management,” says a third.3 Are these qualities—
men around her in General Motors’
which a lot of people have—enough
A to propel one to the top of a great organization?
S
The Rise of the Die S
Maker’s Daughter
The driving force. One quality
that stands out about General
Motors CEO Mary Barra is her
obvious enthusiasm for cars.
She is said to be given to talking
excitedly about whatever car
she is currently driving and
what it demonstrates about
GM’s product line. Do you think
passion about one’s work is a
necessary quality for
managerial success?
The daughter of a die maker with a 39-year career in GM’s Pontiac division, Barra
A
grew up in suburban Detroit, joined GM at age 18 on the factory floor as an intern,
graduated from General Motors N
Institute (now Kettering University) with a degree in
electrical engineering, and then D
became a plant engineer at Pontiac. Spotting her talent, GM gave her a scholarship to Stanford University, where she earned a graduate
R moving up the GM ladder, first as the executive
degree in business. She then began
assistant to the CEO, then as the A
company’s head of human resources—formerly often
as high as female executives ever got, in autos or many other industries. In 2011, her
big break came when she was promoted to lead GM’s $15 billion vehicle-development
operations, a high-profile role that
2 became the steppingstone to CEO.
1
Key to Career Growth:
“Doing Things I’ve Never
6
Done Before”
1
Did it help that, as one writer put it, Barra “had motor oil running through her veins for
T
most of her life”?4 No doubt it did. But there is another key to career growth—the ability to take risks.S
As IBM’s Ginni Rometty, another female CEO, has
said about herself, she has grown the most in her career because “I
learned to always take on things I’ve never done before.”5 She has
found that “you have to be very confident, even though you’re so selfcritical inside about what it is you may or may not know. . . . And that,
to me, leads to taking risks.”6
Of course both men as well as women have to deal with uncertainty. But
the ability to take risks—to embrace change and to keep going forward despite fears and internal criticism—is important to any manager’s survival,
regardless of gender. As Rometty says, “growth and comfort do not coexist.”
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The Exceptional Manager
CHAPTER 1
5
The Art of Management Defined
Is being an exceptional manager a gift, like a musician having perfect pitch? Not exactly. But in good part it may be an art.7 Fortunately, it is one that is teachable.
Management, said one pioneer of management ideas, is “the art of getting things
done through people.”8
Getting things done. Through people. Thus, managers are task oriented, achievement oriented, and people oriented. And they operate within an organization—a group
of people who work together to achieve some specific purpose.
More formally, management is defined as (1) the pursuit of organizational goals
efficiently and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization’s resources.
Note the words efficiently and effectively, whichW
basically mean “doing things
right.”
I
?
Efficiency—the means. Efficiency is the means
L of attaining the organization’s goals. To be efficient means to use resources—people, money, raw
L
materials, and the like—wisely and cost-effectively.
?
Effectiveness—the ends. Effectiveness regards
I the organization’s ends, the
goals. To be effective means to achieve results, to make the right decisions
S
and to successfully carry them out so that they achieve the organization’s
goals.
,
Good managers are concerned with trying to achieve both qualities. Often, however, organizations will erroneously strive for efficiency
K without being effective.
A
S
Efficiency versus Effectiveness: “Don’t Tell MeSYou’re Sorry,
Just Fix the Problem!”
A
What do airline passengers complain about most? CancellaN
tions, delays, and failed flight connections. Reservations, tickD
eting problems, and long telephone wait times. Boarding,
baggage, and refund hassles.
R
How do the airlines handle such complaints? They say
A
they’re sorry.
Having representatives routinely say “I’m sorry” for service
difficulties may be efficient for the airlines—even when the
2
apologies are accompanied by gift cards, credits, and loyalty
1
points—since it’s a lot cheaper than, say, adding more reservation agents, flight crews, baggage handlers, and, of course,
6
airplanes.9 But it’s not effective if it leaves us, the customers,
1
fuming and less inclined to continue doing business.
Bad customer service hurts. One survey found that 51% of
T
U.S. consumers in 2013 were so fed up with poor service that
S
they ditched consumer goods retailers, cable and satellite pro10
viders, banks, and phone companies. Numerous airline customers no doubt also said “I’ll never use you again!”
Efficiency: Saving Company Dollars. Still, a lot of airlines favor efficiency over effectiveness in their customer service—in
large part because there are some big events they can’t control, such as bad weather. In the winter of 2014, relentless
snow and ice storms led to the highest number of flight cancel-
EXAMPLE
Effective? Is this irate customer dealing with a company customersupport system that is more efficient than effective?
lations in 25 years—5.5% of the 1.37 million flights between
December 1 and mid-January. In addition, new government
rules went into effect prohibiting airlines from keeping passengers on the tarmac for three hours or more, so airlines cancelled blocks of flights rather than risk fines of up to $27,500
per passenger ($4.1 million for a planeload of 150 flyers). The
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PART 1
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Introduction
government also implemented a new rule increasing the
amount of rest pilots need, making it harder for the companies
to operate an irregular schedule, as might follow stormy
weather. Finally, “airlines have been cutting unprofitable flights
and packing more passengers into planes,” reports the Associated Press. “That’s been great for their bottom line but has created a nightmare for passengers.”11
Effectiveness: Retaining Customers & Their Dollars. Apologizing doesn’t work when it’s a canned response or half-hearted
or insincere. “Customers know talk is cheap,” says an apology
critic.12 Much better is the method employed by Southwest Airlines, which answered one flyer’s complaint about an unpleasant flight by quickly and personally saying it was “truly sorry,”
addressing each issue he’d brought up, and giving him a credit
equal to the value of his one-way fare. “Southwest admitted
that there were mistakes, didn’t make excuses, and offered sincere and profound apologies,” the mollified passenger said.13
YOUR CALL
The average telephone wait time to reach a human agent at
Southwest Airlines, according to Get2Human.com (http://
get2human.com/get2human_list.asp), was only two minutes,
and agent communications—often difficult when agents, such
as those in overseas call centers, have severe accents—rated
a smiley face (meaning “good”).14 Spirit Air, on the other hand,
took 48 minutes and racked up five red flags (“very bad”) for
agent communications. Get2Human.com (or GetHuman.com) is
a website that aims to convince enterprises, whether airlines or
other kinds, that “providing high quality customer service and
having
W satisfied customers costs much less than providing low
quality customer service and having unsatisfied customers”—
inIother words, being more effective, not just efficient. Get2Human
L also publishes the unpublicized codes for reaching a
company’s human operators and cut-through-automation tips.
L recent unpleasant customer experience would you want
What
toIpost on this website?
S
,
Why Organizations Value Managers:
The Multiplier EffectK
A such as scientific discoveries or works of art,
Some great achievements of history,
were accomplished by individuals
S working quietly by themselves. But so much
more has been achieved by people who were able to leverage their talents and abiliS of the top 10 great architectural wonders of the
ties by being managers. For instance,
world named by the AmericanA
Institute of Architects, none was built by just one
person. All were triumphs of management, although some reflected the vision of an
N Great Wall of China, the Great Pyramid, Machu
individual. (The wonders are the
Picchu, the Acropolis, the Coliseum,
D the Taj Mahal, the Eiffel Tower, the Brooklyn
Bridge, the Empire State Building, and Frank Lloyd Wright’s Falling Water house in
R
Pennsylvania.)
Good managers create value. A
The reason is that in being a manager you have a multiplier effect: Your influence on the organization is multiplied far beyond the results
that can be achieved by just one person acting alone. Thus, while a solo operator such
2 many things and incidentally make a very good livas a salesperson might accomplish
ing, his or her boss could accomplish
1 a great deal more—and could well earn two to
seven times the income. And the manager will undoubtedly have a lot more influence.
6 demand. “The scarcest, most valuable resource in
Exceptional managers are in high
business is no longer financial capital,”
says a Fortune article. “It’s talent. If you doubt
1
that, just watch how hard companies are battling for the best people. . . . Talent of every
T shortage of all is skilled, effective managers.”15
type is in short supply, but the greatest
Even in dismal economic times—maybe
especially in such times—companies reach
S
out for top talent.
The Financial Rewards of Being
an Exceptional Manager
How well compensated are managers? According to the U.S. Bureau of Labor
Statistics, the median weekly wage in 2013 for American workers of all sorts was
$786, or $40,872 a year.16 Education pays: the median 2013 yearly income for
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The Exceptional Manager
Best paid. The CEO of Facebook, Mark Zuckerberg,
earned $2.2 billion in 2012—more than $6 million a
day—making him the highest-paid manager in the
United States that year. His base salary was $503,205,
but most of his pay package came from exercising
millions of stock options when his company went
public that year. What do you think your chances are
of making even $100 million in your entire lifetime?
W
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full-time workers with at least a bachelor’s degree was, $63,388, compared to $33,696
for high-school graduates.17
The business press frequently reports on the astronomical earnings of top chief
executive officers (which jumped a median 8.47% inK2012). The top earner in 2012
was Facebook co-founder Mark Zuckerberg, whose total compensation topped $2.27
A
billion.18 However, this kind of huge payday isn’t common. Median compensation
S on a survey of 2,259 CEOs,
for top-ranked CEOs in North America in 2012, based
was $9.8 million.19 The more usual median wage forSCEOs that year was $168,140
and for general and operations managers $95,440, according to the Bureau of Labor
A
Statistics.20
Managers farther down in the organization usually don’t
N make this much, of course;
nevertheless, they do fairly well compared with most workers. At the lower rungs,
managers may make between $35,000 and $60,000 aDyear; in the middle levels, between $45,000 and $120,000. (For examples of managerial
salaries, go to www.bls.
R
gov/ooh/management/home.htm.)21 There are also all kinds of fringe benefits and staA health insurance to stock optus rewards that go with being a manager, ranging from
tions to large offices. And the higher you ascend in the management hierarchy, the
more privileges may come your way: personal parking space, better furniture, lunch in
2 top rung of big companies—
the executive dining room, on up to—for those on the
company car and driver, corporate jet, and even executive
1 sabbaticals (months of paid
time off to pursue alternative projects).
6
1
What Are the Rewards of Studying
T
& Practicing Management?
S
Are you studying management but have no plans to be a manager? Or are you trying to
learn techniques and concepts that will help you be an exceptional management practitioner? Either way there are considerable rewards.
The Rewards of Studying Management
Students sign up for an introductory
management course for all kinds of reasons. Many, of course, are planning business
careers, but others are taking it to fulfill a requirement or an elective. Some students
are in technical or nonprofit fields—computer science, education, health, and the
like—and never expect to have to supervise people.
CHAPTER 1
7
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