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10th Edition

Fundamentals of
Management

Ricky W. Griffin
Texas A&M University

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Printed in the United States of America

Print Number: 01 Print Year: 2021

PART 1 An Introduction to Management

Chapter 1 Understanding The Manager’s Job 1
Chapter 2 The Environments of Organizations and Managers 31

PART 2 Planning
Chapter 3 Planning and Strategic Management 59
Chapter 4 Managing Decision Making 89
Chapter 5 Entrepreneurship and New Venture Management 114

PART 3 Organizing
Chapter 6 Organization Structure and Design 143
Chapter 7 Organization Change and Innovation 173
Chapter 8 Managing Human Resources in Organizations 202

PART 4 Leading
Chapter 9 Basic Elements of Individual Behavior in Organizations 235
Chapter 10 Managing Employee Motivation and Performance 267
Chapter 11 Leadership and Influence Processes 301
Chapter 12 Communication in Organizations 332
Chapter 13 Managing Work Groups and Teams 366

PART 5 Controlling
Chapter 14 Basic Elements of Control 395
Chapter 15 Managing Operations, Quality, and Productivity 424
Endnotes 454
Name Index 473
Organization and Product Index 476
Subject Index 480

PART 1 An Introduction to Management

Chapter 1
Understanding the Manager’s Job 1
1-1 An Introduction to Management 3
1-1a Kinds of Managers 4
Levels of Management 4
1-1b Managing in Different Areas of the Organization 5
1-2 Basic Management Functions 6
1-2a Planning and Decision Making 7
1-2b Organizing 7
Tech Watch: “. . . But What Is a Social Media Manager?” 7
1-2c Leading 8
1-2d Controlling 8
1-3 Fundamental Management Skills 8
Technical Skills 8 • Interpersonal Skills 8 • Conceptual Skills 8 • Diagnostic
Skills 9 • Communication Skills 9 • Decision-Making Skills 9 • Time
Management Skills 9
1-3a The Science and the Art of Management 9
The Science of Management 9
Leading the Way: On the Fast Track 10
The Art of Management 11
1-4 The Importance of Theory and History 11
1-4a Why Theory? 11
1-4b Why History? 11
1-5 The Evolution of Management 12
1-5a The Historical Context of Management 12
1-5b The Classical Management Perspective 13
Scientific Management 13 • Administrative Management 14 • The Classical
Management Perspective Today 14
1-5c The Behavioral Management Perspective 15
The Hawthorne Studies 15 • The Human Relations Movement 16 •
Contemporary Behavioral Science in Management 17 • The Behavioral
Management Perspective Today 17
1-5d The Quantitative Management Perspective 17
Management Science 18 • Operations Management 18 • The Quantitative
Management Perspective Today 18
1-6 Contemporary Management Perspectives 19
1-6a The Systems Perspective 19
1-6b The Contingency Perspective 21

1-7 Contemporary Management Issues and Challenges 21

1-7a Contemporary Applied Perspectives 21
1-7b Contemporary Management Challenges 22
Summary of Learning Outcomes and Key Points 24
Discussion Questions 25
Building Effective Interpersonal Skills 26
Building Effective Time Management Skills 27
Skill-Building Personal Assessment 27
Management At Work 29
You Make the Call: Reed Hastings Doesn’t Like Standing Still 30

Chapter 2
The Environments of Organizations and Managers 31
2-1 The Organization’s Environments 33
2-1a The General Environment 33
The Economic Dimension 33 • The Technological Dimension 34 • The
Political–Legal Dimension 34
2-1b The Task Environment 35
Competitors 35 • Customers 35 • Supplier 35 • Regulators 36
Strategic Partners 37
2-1c The Internal Environment 38
Owners 38 • Board of Directors 38 • Employees 38 • Physical Work
Environment 38
Doing Business on Planet Earth: Raising the CSR Bar 39
2-2 The Ethical and Social Environment of Management 40
2-2a Individual Ethics in Organizations 40
Managerial Ethics 40 • Managing Ethical Behavior 41
2-2b Emerging Ethical Issues 42
Ethical Leadership 42 • Corporate Governance 43 • Ethics and Information
Technology 43
2-3 Social Responsibility in Organizations 43
2-3a Arguments for and Against Social Responsibility 43
2-3b Managing Social Responsibility 44
Formal Organizational Dimensions 45 • Informal Organizational Dimensions 45
2-4 The International Environment of Management 46
2-4a Trends in International Business 46
2-4b Levels of International Business Activity 47
Exporting and Importing 47 • Licensing 48 • Strategic Alliances 48 • Direct
Investment 48
2-4c The Context of International Business 48
The Cultural Environment 48 • Controls on International Trade 49 • Economic
Communities 50 • The Role of the GATT and WTO 51
2-5 The Organization’s Culture 51
2-5a The Importance of Organizational Culture 52
2-5b Determinants of Organizational Culture 52
2-5c Managing Organizational Culture 52
Leading the Way: Happy Fit 53
Summary of Learning Outcomes and Key Points 54
Discussion Questions 55
Building Effective Conceptual Skills 55
Building Effective Communication Skills 56
Skill-Building Personal Assessment 56
Management at Work 57
You Make the Call: Turbulence in the Air 58

PART 2 Planning

Chapter 3
Planning and Strategic Management 59
3-1 Planning and Organizational Goals 61
3-1a Organizational Goals 62
Purposes of Goals 62 • Kinds of Goals 63
3-1b Kinds of Organizational Plans 63
Strategic Plan 63 • Tactical Plans 63 • Operational Plans 63
3-2 The Nature of Strategic Management 64
3-2a The Components of Strategy 64
3-2b Types of Strategic Alternatives 64
3-3 Using SWOT Analysis to Formulate Strategy 66
3-3a Evaluating an Organization’s Strengths 66
3-3b Evaluating an Organization’s Weaknesses 67
3-3c Evaluating an Organization’s Opportunities and Threats 68
Tech Watch: Starting Conversations 68
3-4 Formulating Business-Level Strategies 69
3-4a Generic Strategies 69
3-4b Strategies Based on the Product Life Cycle 71
3-5 Formulating Corporate-Level Strategies 72
3-5a Single-Product Strategy 72
3-5b Related Diversification 72
3-5c Unrelated Diversification 73
Leading The Way: The Beauty of Differentiation 74
3-5d Managing Diversification 75
BCG Matrix 75 • GE Business Screen 76
3-6 Tactical Planning 78
3-6a Developing Tactical Plans 78
3-6b Executing Tactical Plans 78
3-7 Operational Planning 79
3-7a Single-Use Plans 79
Programs 79 • Projects 79
3-7b Standing Plans 79
Policies 80 • Standard Operating Procedures 80 • Rules and Regulations 80
3-7c Contingency Planning and Crisis Management 80
Summary of Learning Outcomes and Key Points 83
Discussion Questions 84
Building Effective Time-Management Skills 84
Building Effective Decision-Making Skills 84
Skill-Building Personal Assessment 85
Management at Work 87
You Make the Call: The Lap of Luxury 88

Chapter 4
Managing Decision Making 89
4-1 The Nature of Decision Making 91
4-1a Decision Making Defined 91
4-1b Types of Decisions 92
4-1c Decision-Making Conditions 92
Decision Making under Certainty 92 • Decision Making under Risk 93
Decision Making under Uncertainty 94
4-2 Rational Perspectives on Decision Making 95
4-2a The Classical Model of Decision Making 95

4-2b Steps in Rational Decision Making 95

Recognizing and Defining the Decision Situation 95 • Identifying Alternatives 96
Evaluating Alternatives 97 • Selecting an Alternative 97 • Implementing the
Chosen Alternative 98 • Following Up and Evaluating the Results 98
4-2c Evidence-Based Management 99
4-3 Behavioral Elements in Decision Making 100
4-3a The Administrative Model 100
4-3b Political Forces in Decision Making 101
4-3c Intuition and Escalation of Commitment 101
Intuition 101
A World of Difference: Sometimes Doing the “Right Thing” Can Be Confusing 102
Escalation of Commitment 102
4-3d Risk Propensity and Decision Making 103
4-3e Ethics and Decision Making 103
Doing Business on Planet Earth: Lighting the Stove 104
4-4 Group and Team Decision Making in Organizations 105
4-4a Forms of Group and Team Decision Making 105
Interacting Groups and Teams 105 • Delphi Groups 105 • Nominal Groups 106
4-4b Advantages of Group and Team Decision Making 106
4-4c Disadvantages of Group and Team Decision Making 106
4-4d Managing Group and Team Decision-Making Processes 107
Summary of Learning Outcomes and Key Points 108
Discussion Questions 108
Building Effective Conceptual Skills 109
Building Effective Decision-Making Skills 110
Skill-Building Personal Assessment 110
Management at Work 111
You Make the Call: Sailing the Seas 113

Chapter 5
Entrepreneurship and New Venture Management 114
5-1 The Meaning of Entrepreneurship 116
5-2 The Role of Entrepreneurs, Start-Ups, and New Ventures in Society 117
5-2a Job Creation 117
5-2b Innovation 119
5-2c Importance to Big Business 120
5-3 Strategy for Start-Ups and New Ventures 120
5-3a Choosing an Industry 120
Services 121 • Retailing 121 • Construction 122 • Finance and Insurance 122
• Wholesaling 122 • Transportation 122 • Manufacturing 123
5-3b Emphasizing Distinctive Competencies 123
Identifying Niches in Established Markets 124 • Identifying New Markets 124
Leading the Way: Current Affairs in the Electric Vehicle Business 125
First-Mover Advantages 126
5-3c Writing a Business Plan 126
5-3d Entrepreneurship and International Markets 127
5-4 Structure of Start-Ups and New Ventures 127
5-4a Starting the New Business 127
Buying an Existing Business 127 • Starting from Scratch 128
5-4b Financing the New Business 128
Personal Resources 128 • Strategic Alliances 129 • Traditional Lenders 129
Venture Capital Companies 129 • Small-Business Investment Companies 129
SBA Financial Programs 129 • Crowdfunding 130
5-4c Sources of Management Advice 130
Advisory Boards 130 • Management Consultants 130 • The Small Business
Administration 130 • Networking 131

5-4d Franchising 131

Beyond Traditional Business: Taxi Dancing around the Question of Regulation 132
5-5 The Performance of Start-Ups and New Ventures 134
5-5a Trends in Start-Ups and New Ventures 134
Emergence of E-Commerce 135 • Crossovers from Big Business 135
Opportunities for Minorities and Women 135 • Better Survival Rates 135
5-5b Reasons for Failure 136
5-5c Reasons for Success 136
Summary of Learning Outcomes and Key Points 137
Discussion Questions 138
Building Effective Interpersonal Skills 138
Building Effective Conceptual Skills 139
Skill-Building Personal Assessment 139
Management at Work 140
You Make the Call: Putting the Greek into Yogurt 142

PART 3 Organizing

Chapter 6
Organization Structure and Design 143
6-1 The Basic Elements of Organizing 145
6-1a Job Specialization 145
Benefits and Limitations of Specialization 145 • Alternatives to Specialization 146
6-1b Grouping Jobs: Departmentalization 148
Functional Departmentalization 149 • Product Departmentalization 149
Customer Departmentalization 149 • Location Departmentalization 150
6-1c Establishing Reporting Relationships 150
Chain of Command 150 • Span of Management 150 • Tall versus Flat
Organizations 150
6-1d Distributing Authority 151
The Delegation Process 151 • Decentralization and Centralization 151
Leading the Way: Feeding the Chicken 152
6-1e Coordinating Activities 153
The Need for Coordination 153 • Structural Coordination Techniques 153
Digital Coordination 154
6-2 The Bureaucratic Model of Organization Design 155
6-3 Situational Influences on Organization Design 156
6-3a Core Technology 157
6-3b Environment 158
A World of Difference: Keeping the Organizational Tools Sharp 158
6-3c Organizational Size and Life Cycle 159
6-4 Basic Forms of Organization Design 160
6-4a Functional (U-Form) Design 160
6-4b Conglomerate (H-Form) Design 161
6-4c Divisional (M-Form) Design 162
6-4d Matrix Design 163
6-4e Hybrid Designs 165
6-5 Emerging Issues in Organization Design 165
6-5a The Team Organization 165
6-5b The Virtual Organization 166
6-5c The Learning Organization 166
Summary of Learning Outcomes and Key Points 167
Discussion Questions 167
Building Effective Conceptual Skills 168
Building Effective Diagnostic Skills 168

Skill-Building Personal Assessment 168

Management at Work 171
You Make the Call: The Stress of Screening 172

Chapter 7
Organization Change and Innovation 173
7-1 The Nature of Organization Change 175
7-1a Forces for Change 175
External Forces 175 • Internal Forces 176
7-1b Planned versus Reactive Change 176
7-2 Managing Change in Organizations 177
7-2a Steps in the Change Process 178
The Lewin Model 178 • A Comprehensive Approach to Change 178
7-2b Understanding Resistance to Change 179
Uncertainty 179 • Threatened Self-Interests 179 • Different Perceptions 180
Feelings of Loss 180
7-2c Overcoming Resistance to Change 180
Participation 180 • Education and Communication 180 • Facilitation 181
Force-Field Analysis 181
7-3 Areas of Organization Change 182
7-3a Changing Organization Structure and Design 182
7-3b Changing Technology and Operations 182
Doing Business on Planet Earth: Toward Zero Waste? 183
7-3c Changing People, Attitudes, and Behaviors 184
7-3d Changing Business Processes 185
The Need for Business Process Change 185 • Approaches to Business Process
Change 185
7-3e Organization Development 186
OD Assumptions 186 • OD Techniques 187 • The Effectiveness of OD 188
7-4 Organizational Innovation 189
7-4a The Innovation Process 189
Innovation Development 189 • Innovation Application 189 • Application
Launch 190 • Application Growth 190 • Innovation Maturity 190
Innovation Decline 190
7-4b Forms of Innovation 190
Radical versus Incremental Innovations 191 • Technical versus Managerial
Innovations 191 • Product versus Process Innovations 191
7-4c The Failure to Innovate 192
Lack of Resources 192 • Failure to Recognize Opportunities 193 • Resistance to
Change 193
Tech Watch: Breaking the Mold 193
7-4d Promoting Innovation in Organizations 194
The Reward System 194 • Organization Culture 194 • Intrapreneurship in Larger
Organizations 195
Summary of Learning Outcomes and Key Points 195
Discussion Questions 196
Building Effective Decision-Making Skills 197
Building Effective Diagnostic Skills 197
Skill-Building Personal Assessment 198
Management at Work 199
You Make the Call: A Picture Says It All 201

Chapter 8
Managing Human Resources in Organizations 202
8-1 The Environmental Context of Human Resource Management 204
8-1a The Strategic Importance of HRM 204

8-1b The Legal Environment of HRM 205

Equal Employment Opportunity 205 • Compensation and Benefits 206
Labor Relations 207 • Health and Safety 207 • Emerging Legal Issues 207
8-1c Social Change and HRM 208
8-2 Attracting Human Resources 209
8-2a Human Resource Planning 209
Job Analysis 209 • Forecasting Human Resource Demand and Supply 209
Matching Human Resource Demand and Supply 211
8-2b Recruiting Employees 211
Tech Watch: Using Tech to Find Talent 212
8-2c Selecting Employees 213
Application Forms and Resumes 213 • Tests 214 • Interviews 214
Assessment Centers 214 • Other Techniques 214
8-3 Developing Human Resources 215
8-3a Training and Development 215
Assessing Training Needs 215 • Common Training Methods 215 • Evaluation of
Training 217
8-3b Performance Appraisal 217
Common Appraisal Methods 217 • Errors in Performance Appraisal 219
8-3c Performance Feedback 220
8-4 Maintaining Human Resources 220
8-4a Determining Compensation 221
Wage-Level Decision 221 • Wage-Structure Decision 221 • Individual Wage
Decisions 222
8-4b Determining Benefits 222
Leading the Way: Holding True at Nucor Steel 223
8-4c Career Planning 224
8-5 Managing Labor Relations 224
8-5a How Employees Form Unions 224
8-5b Collective Bargaining 225
8-6 New Challenges in the Changing Workplace 227
8-6a Managing Knowledge Workers 227
The Nature of Knowledge Work 227 • Knowledge Worker Management and Labor
Markets 227
8-6b Contingent and Temporary Workers 227
Trends in Contingent and Temporary Employment 227 • Managing Contingent and
Temporary Workers 228
Summary of Learning Outcomes and Key Points 229
Discussion Questions 230
Building Effective Decision-Making Skills 230
Building Effective Technical Skills 231
Skill-Building Personal Assessment 231
Management at Work 233
You Make the Call: No Company for Old-Fashioned Management 234

PART 4 Leading

Chapter 9
Basic Elements of Individual Behavior in Organizations 235
9-1 Understanding Individuals in Organizations 237
9-1a The Psychological Contract 237
9-1b The Person–Job Fit 239
9-1c The Nature of Individual Differences 239
9-2 Personality and Individual Behavior 240
9-2a The “Big Five” Personality Traits 240

9-2b The Myers-Briggs Framework 242

9-2c Other Personality Traits at Work 242
9-2d Emotional Intelligence 244
9-3 Attitudes and Individual Behavior 244
9-3a Work-Related Attitudes 245
Job Satisfaction or Dissatisfaction 245
9-3b Organizational Commitment and Engagement 246
Leading the Way: Happy Hotel Workers at Hilton 246
9-3c Affect and Mood in Organizations 247
9-4 Perception and Individual Behavior 248
9-4a Basic Perceptual Processes 248
Selective Perception 248 • Stereotyping 248
9-4b Perception and Attribution 249
9-5 Stress and Individual Behavior 250
9-5a Causes and Consequences of Stress 251 • Causes of Stress 251
A World of Difference: Differences Can Lead to Stress 252
Consequences of Stress 253
9-5b Managing Stress 254
9-6 Creativity in Organizations 255
9-6a The Creative Individual 255
Background Experiences and Creativity 255 • Personal Traits and Creativity 255
Cognitive Abilities and Creativity 255
9-6b The Creative Process 256
Preparation 256 • Incubation 256 • Insight 256 • Verification 257
9-6c Enhancing Creativity in Organizations 257
9-7 Types of Workplace Behavior 257
9-7a Performance Behaviors 257
9-7b Withdrawal Behaviors 258
9-7c Organizational Citizenship 258
9-7d Dysfunctional Behaviors 259
Summary of Learning Outcomes and Key Points 259
Discussion Questions 260
Building Effective Interpersonal Skills 261
Building Effective Time-Management Skills 261
Skill-Building Personal Assessment 262
Management at Work 264
You Make the Call: Engaging with the Company Garbage 266

C h ap t e r 10
Managing Employee Motivation and Performance 267
10-1 The Nature of Motivation 269
10-1a The Importance of Employee Motivation in the Workplace 269
10-1b Historical Perspectives on Motivation 270
The Traditional Approach 270 • The Human Relations Approach 270
The Human Resource Approach 271
10-2 Content Perspectives on Motivation 271
10-2a The Needs Hierarchy Approach 271
Maslow’s Hierarchy of Needs 272 • The ERG Theory 273
10-2b The Two-Factor Theory 274
10-2c Individual Human Needs 275
10-2d Implications of the Content Perspectives 275
10-3 Process Perspectives on Motivation 276
10-3a Expectancy Theory 276
Effort-to-Performance Expectancy 276 • Performance-to-Outcome
Expectancy 276 • Outcomes and Valences 277 • The Porter-Lawler
Extension 278

10-3b Equity Theory 278

10-3c Goal-Setting Theory 279
Goal Difficulty 279 • Goal Specificity 280
10-3d Implications of the Process Perspectives 281
10-4 Reinforcement Perspectives on Motivation 281
Leading the Way: To Reward, or to Punish?. . . That Is the Question 282
10-4a Kinds of Reinforcement in Organizations 282
10-4b Providing Reinforcement in Organizations 283
10-4c Implications of the Reinforcement Perspectives 284
10-5 Popular Motivational Strategies 284
10-5a Empowerment and Participation 284
Areas of Participation 285 • Techniques and Issues in Empowerment 285
10-5b Alternative Forms of Work Arrangements 286
Variable Work Schedules 286 • Flexible Work Schedules 286
Job Sharing 287 • Telecommuting 287
10-6 Using Reward Systems to Motivate Performance 287
10-6a Merit Reward Systems 288
10-6b Incentive Reward Systems 288
Incentive Pay Plans 288 • Other Forms of Incentive 289
Doing Business on Planet Earth: M(otivation) p(er) G(allon) 290
10-6c Team and Group Incentive Reward Systems 290
Common Team and Group Reward Systems 291 • Other Types of Team and Group
Rewards 291
10-6d Executive Compensation 292
Standard Forms of Executive Compensation 292 • Special Forms of Executive
Compensation 292 • Criticisms of Executive Compensation 293
10-6e New Approaches to Performance-Based Rewards 294
Summary of Learning Outcomes and Key Points 294
Discussion Questions 295
Building Effective Interpersonal Skills 296
Building Effective Decision-Making Skills 296
Skill-Building Personal Assessment 297
Management at Work 298
You Make the Call: What Makes SAS a Great Place to Work? 300

C h a p t e r 11
Leadership and Influence Processes 301
11-1 The Nature of Leadership 303
11-1a The Meaning of Leadership 303
11-1b Leadership and Management 303
11-1c Leadership and Power 305
Legitimate Power 305 • Reward Power 305 • Coercive Power 305
Referent Power 305 • Expert Power 306 • Using Power 306
11-2 Generic Approaches to Leadership 307
11-2a Leadership Traits 307
11-2b Leadership Behaviors 308
Michigan Studies 308 • Ohio State Studies 308 • Leadership Grid 309
11-3 Situational Approaches to Leadership 311
11-3a LPC Theory 312
Favorableness of the Situation 312 • Favorableness and Leader Style 313
Flexibility of Leader Style 314
11-3b Path–Goal Theory 314
Leader Behavior 314 • Situational Factors 314
11-3c Vroom’s Decision Tree Approach 315
Basic Premises 316 • Decision-Making Styles 316 • Evaluation and
Implications 317
11-3d The Leader–Member Exchange Approach 318

11-4 Related Approaches to Leadership 319

11-4a Substitutes for Leadership 319
11-4b Charismatic Leadership 320
A World of Difference: Following Her Own Path 321
11-4c Transformational Leadership 321
11-5 Emerging Approaches to Leadership 322
11-5a Strategic Leadership 322
Doing Business on Planet Earth: Leading Sustainably 322
11-5b Cross-Cultural Leadership 323
11-5c Ethical Leadership 323
11-6 Political Behavior in Organizations 324
11-6a Common Political Behaviors 324
11-6b Impression Management 324
11-6c Managing Political Behavior 325
Summary of Learning Outcomes and Key Points 326
Discussion Questions 327
Building Effective Interpersonal Skills 327
Building Effective Conceptual Skills 328
Skill-Building Personal Assessment 329
Management at Work 330
You Make the Call: Two Bites from the Same Apple 331

C h a p t e r 12
Communication in Organizations 332
12-1 The Interpersonal Nature of Organizations 335
12-1a Interpersonal Dynamics 336
12-1b Outcomes of Interpersonal Behaviors 336
12-2 Communication and the Manager’s Job 337
12-2a The Problems with Communication 337
12-2b A Definition of Communication 338
12-2c The Role of Communication in Management 338
12-2d The Communication Process 339
12-3 Forms of Communication in Organizations 342
12-3a Interpersonal Communication 342
Oral Communication 342 • Nonverbal Communication 342
Written Communication 343 • Choosing the Right Form 344
12-3b Communication in Networks and Work Teams 345
12-3c Organizational Communication 345
Vertical Communication 346 • Horizontal Communication 347
12-3d Digital Communication 347
Formal Information Systems 347
Tech Watch: Thinking (and Talking) on Your Feet 347
Personal Electronic Technology 348
12-4 Informal Communication in Organizations 349
12-4a The Grapevine 350
12-4b Management by Wandering Around 351
12-5 Managing Organizational Communication 352
12-5a Barriers to Communication 352
Individual Barriers 353 • Organizational Barriers 354
12-5b Improving Communication Effectiveness 354
Individual Skills 354
Leading the Way: In Communication We Trust 356
Organizational Skills 357
Summary of Learning Outcomes and Key Points 358
Discussion Questions 358

Building Effective Technical Skills 359

Building Effective Interpersonal Skills 360
Skill-Building Personal Assessment 360
Management at Work 363
You Make the Call: A Big Desk May Say it All 365

C h a p t e r 13
Managing Work Groups and Teams 366
13-1 Groups and Teams in Organizations 368
13-1a Types of Groups and Teams 368
Functional Groups 368 • Informal or Interest Groups 369
Task Groups 370
Doing Business on Planet Earth: Cooking Up Sustainability 371
13-1b Why People Join Groups and Teams 372
Interpersonal Attraction 372 • Group Activities 372 • Group Goals 373
Need Satisfaction 373 • Instrumental Benefits 373
13-1c Stages of Group and Team Development 373
13-2 Characteristics of Groups and Teams 375
13-2a Role Structures 375
Role Ambiguity 375 • Role Conflict 375 • Role Overload 376
13-2b Behavioral Norms 377
Norm Generalization 377 • Norm Variation 377 • Norm Conformity 377
13-2c Cohesiveness 378
Factors That Increase Cohesiveness 378 • Factors That Reduce Cohesiveness 378
Leading the Way: Primed for Power 379
Consequences of Cohesiveness 380
13-2d Formal and Informal Leadership 380
13-3 Interpersonal and Intergroup Conflict 381
13-3a The Nature of Conflict 381
13-3b Causes of Conflict 382
Interpersonal Conflict 382 • Intergroup Conflict 383 • Conflict Between
Organization and Environment 383
13-4 Managing Conflict in Organizations 384
13-4a Stimulating Conflict 384
13-4b Controlling Conflict 385
13-4c Resolving and Eliminating Conflict 386
13-4d Negotiation 386
Summary of Learning Outcomes and Key Points 388
Discussion Questions 388
Building Effective Conceptual Skills 389
Building Effective Communication Skills 389
Skill-Building Personal Assessment 390
Management at Work 391
You Make the Call: An Open Invitation to Innovation 393

PART 5 Controlling

C h a p t e r 14
Basic Elements of Control 395
14-1 The Nature of Control 397
14-1a The Purpose of Control 397
Adapting to Environmental Change 397 • Limiting the Accumulation of Error 398
• Coping with Organizational Complexity 398 • Minimizing Costs 399
14-1b Types of Control 399
Areas of Control 399 • Levels of Control 399 • Responsibilities of Control 400

14-1c Steps in the Control Process 401

Establishing Standards 401 • Measuring Performance 402 • Comparing
Performance Against Standards 402 • Considering Corrective Action 403
Beyond Traditional Business: The Intelligent Way to Run a Nonprofit 404
14-2 Operations Control 404
14-2a Preliminary Control 405
14-2b Screening Control 405
14-2c Postaction Control 406
14-3 Financial Control 406
14-3a Budgetary Control 407
Types of Budgets 407 • Developing Budgets 408 • Strengths and Weaknesses of
Budgeting 409
14-3b Other Tools for Financial Control 409
Financial Statements 409 • Financial Audits 410
Tech Watch: Analytics and the Future of Auditing 411

14-4 Structural Control 411

14-4a Bureaucratic Control 412
14-4b Decentralized Control 413
14-5 Strategic Control 413
14-5a Integrating Strategy and Control 413
14-5b International Strategic Control 414
14-6 Managing Control in Organizations 415
14-6a Characteristics of Effective Control 415
Integration with Planning 415 • Flexibility 415 • Accuracy 415
Timeliness 415 • Objectivity 416
14-6b Resistance to Control 416
Overcontrol 416 • Inappropriate Focus 416 • Rewards for Inefficiency 417
Too Much Accountability 417
14-6c Overcoming Resistance to Control 417
Encourage Employee Participation 417 • Develop Verification Procedures 417
Summary of Learning Outcomes and Key Points 418
Discussion Questions 419
Building Effective Time-Management Skills 419
Building Effective Technical Skills 420
Skill-Building Personal Assessment 420
Management at Work 421
You Make the Call: Controlling the Cheesecakes 423

C h a p t e r 15
Managing Operations, Quality, and Productivity 424
15-1 The Nature of Operations Management 426
15-1a The Importance of Operations 426
15-1b Manufacturing and Production Operations 426
15-1c Service Operations 427
15-1d The Role of Operations in Organizational Strategy 427
A World of Difference: Dispensing Hope 428

15-2 Designing Operations Systems 428

15-2a Determining Product-Service Mix 428
15-2b Capacity Decisions 429
15-2c Facilities Decisions 430
Location 430 • Layout 430
15-3 Organizational Technologies 432
15-3a Manufacturing Technology 432
Automation 432 • Computer-Assisted Manufacturing 433 • Robotics 434
15-3b Service Technology 435

15-4 Implementing Operations Systems Through Supply Chain Management 435

15-4a Operations Management as Control 436
15-4b Purchasing Management 437
15-4c Inventory Management 437
Tech Watch: When the Colonel Ran Out of Chicken 438

15-5 Managing Total Quality 439

15-5a The Meaning of Quality 440
15-5b The Importance of Quality 440
Competition 440 • Productivity 441 • Costs 441
15-5c Total Quality Management 441
Strategic Commitment 441 • Employee Involvement 442
Technology 442 • Materials 442 • Methods 442
15-5d TQM Tools and Techniques 442
Value-Added Analysis 442 • Benchmarking 443 • Outsourcing 443
Reducing Cycle Time 443 • ISO 9000:2000 and ISO 14000 444
Statistical Quality Control 444 • Six Sigma 445
15-6 Managing Productivity 445
15-6a The Meaning of Productivity 445
Levels of Productivity 445 • Forms of Productivity 445
15-6b The Importance of Productivity 446
15-6c Productivity Trends 446
15-6d Improving Productivity 447
Improving Operations 447 • Increasing Employee Involvement 448
Summary of Learning Outcomes and Key Points 449
Discussion Questions 449
Building Effective Communication Skills 450
Building Effective Diagnostic Skills 450
Skill-Building Personal Assessment 451
Management at Work 452
You Make the Call: Out Supply-Chaining the King of Supply Chainers 453

Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Name Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
Organizational & Product Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476
Subject Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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Preface
Hundreds of books have been written for introductory management courses. As the theory,
research, and practice of management has grown and expanded, authors have continued to
mirror this expansion of material in their books. Writers have understood the importance
of adding new material about traditional topics, such as planning and organizing, while
simultaneously adding coverage of emerging newer topics, such as sustainability, ethics,
and social media. As a by-product of this trend, our traditional textbooks have grown lon-
ger and longer but also more difficult to cover in one course.
Another trend in management education is a focus on teaching in a broader context.
That is, introductory management courses are increasingly being taught with less emphasis
on theory alone and more emphasis on the application of concepts. Teaching students how
to apply management concepts successfully often involves focusing more on skills develop-
ment and the human side of the organization. This trend requires that books cover theoreti-
cal concepts within a flexible framework that enables instructors to make use of interactive
tools such as case studies, exercises, and projects. It also dictates that a text be as relevant
to students as possible. Hence, while this book draws examples and cases from older large
businesses like Ford, IBM, and General Electric, it also makes extensive use of newer firms
such as Google, Tesla, Netflix, Facebook, Starbucks, Urban Outfitters, and others.
Indeed, this book represents a synthesis of these trends toward a more manageable
and practical approach. By combining concise text discussion, proven pedagogical tools,
lively and current content, an emphasis on organizational behavior, and exciting skills
development material, Fundamentals of Management answers the need for a new approach
to management education. This book provides almost limitless flexibility, a solid founda-
tion of knowledge-based material, and an action-oriented learning dimension unique in
the field. Indeed, over half a million students were introduced to the field of management
using the first nine editions of this book. This tenth edition builds solidly on the successes
of the earlier editions.

Organization of the Book

Most management instructors today organize their course around the traditional manage-
ment functions of planning, organizing, leading, and controlling. Fundamentals of Man-
agement uses these functions as its organizing framework. The book consists of five parts,
with fifteen chapters.
Part One introduces management through two chapters. Chapter 1 provides a basic
overview of the management process in organizations, and Chapter 2 introduces students
to the environment of management. Part Two covers the first basic management function,
planning. Chapter 3 introduces the fundamental concepts of planning and discusses stra-
tegic management. Managerial decision making is the topic of Chapter 4. Finally, Chapter
5 covers entrepreneurship and the management of new ventures.
The second basic management function, organizing, is the subject of Part Three. In
Chapter 6, the fundamental concepts of organization structure and design are introduced
and discussed. Chapter 7 explores organization change and organizational innovation.
Chapter 8 is devoted to the management of human resources.

xix

Many instructors and managers believe that the third basic management function, lead-
ing, is especially important in contemporary organizations. Thus, Part Four consists of five
chapters devoted to this management function. Basic concepts and processes associated with
individual behavior are introduced and discussed in Chapter 9. Employee motivation is the
subject of Chapter 10. Chapter 11 examines leadership and influence processes in organiza-
tions. Communication in organizations is the topic of Chapter 12. The management of groups
and teams is covered in Chapter 13.
The fourth management function, controlling, is the subject of Part Five. Chapter 14 intro-
duces the fundamental concepts and issues associated with management of the control pro-
cess. A special area of control today, managing for total quality, is discussed in Chapter 15.

Skills-Focused Pedagogical Features

Both the overarching framework and streamlined topical coverage make it possible to address
new dimensions of management education without creating a book so long that it is unwieldy.
Specifically, each chapter is followed by a proven, applied set of skills-based exercises and
related activities. These resources have been created to bring an active and a behavioral ori-
entation to management education by inviting students to solve problems, make decisions,
respond to situations, and work in teams. In short, these materials simulate many of the day-
to-day challenges and opportunities that real managers face.
The Summary of Learning Objectives and Key Points ties content and student learning
back to the objectives introduced at the beginning of the chapter and three kinds of Discus-
sion Questions (Review, Analysis, and Application) help transition from content mastery to
skills applications. Among the true skills-based exercises are two different Building Effective
Skills features organized around the set of basic management skills introduced in Chapter 1.
A Skills Self-Assessment Instrument exercise also helps readers learn something about their
own approach to management.
New to the tenth edition, each chapter also contains interesting boxed features, two per
chapter, centered around sustainability, leadership, technology, diversity, and nontradi-
tional settings. These features depart briefly from the flow of the chapter to highlight or
extend especially interesting or emerging points and issues related to boxed feature titles.
In addition to the end-of-chapter exercises, every chapter includes important time-tested
and proven pedagogy: learning objectives, a chapter outline, an opening case, key terms, pho-
tographs with captions, tables, figures, an end-of-chapter case with questions, and questions
tied back to the opening case.

Changes To The Tenth Edition

The tenth edition of Fundamentals of Management retains the same basic structure and for-
mat as the previous edition. However, within that framework the content of the book has been
thoroughly revised and updated. The following changes are illustrative of the new material
that has been added:
(1) New topical coverage related to both domestic and global economic conditions is
included. The book also places greater emphasis on the services sector of the econ-
omy. Coverage of managerial and organizational implications of the 2020 COVID-19
pandemic, the resulting economic impact of the pandemic on businesses, and other
topical issues has also been added. Moreover, all data regarding international business
activity, entrepreneurship and small businesses, and workforce diversity have been
updated to the most current figures available.
(2) Several of the newest management techniques are also included in this edition. Exam-
ples include prospect theory and evidence-based management. These and other new
techniques are discussed in several places in the book.
(3) The latest research findings regarding globalization, strategic management, organizing,
motivation, leadership, and control have been incorporated into the text and referenced
at the end of the book. Over 150 new articles and books are cited.

(4) Virtually all of the cases and boxed inserts are new to this edition of Fundamentals of
Management, while the few retained from earlier editions have been updated as needed.
They reflect a wide variety of organizations and illustrate both successful and less suc-
cessful practices and decisions.
(5) As noted earlier, this book features a rich and diverse array of end-of-chapter materials
to facilitate both learning and skill development. For this edition, a substantial portion
of this material has been replaced or substantially revised.

Supplements
Instructor Support Materials
• Instructor Companion Website: Instructors can find course support materials,
including Instructor’s Resource Manual, Test Bank files, and PowerPoint® slides.
• Instructor’s Manual: Designed to provide support for instructors new to the course,
as well as innovative materials for experienced professors, the Instructor’s Manual
includes activities and assessments for each chapter and their correlation to specific
learning objectives, an outline, key terms with definitions, a chapter summary, and
ideas for engaging with students–such as discussion questions, ice breakers, case
studies, and social learning activities that may be conducted in an on-ground, hybrid,
or online modality.
• Cengage Learning Testing Powered by Cognero: Cognero is a flexible online system
that allows you to author, edit, and manage test bank content from multiple Cengage
Learning solutions; create multiple test versions in an instant; and deliver tests from
your LMS, your classroom, or wherever you want.
• PowerPoint Lecture Presentation: The PowerPoint Lecture Presentations are closely
tied to the Instructor Manual, providing ample opportunities for generating classroom
discussion and interaction. They offer ready-to-use, visual outlines of each chapter,
which may be easily customized for your lectures.
• Guide to Teaching Online: This guide presents technological and pedagogical
considerations and suggestions for teaching the Management course when you can’t be
in the same room with students.
• Transition Guide: This guide highlights all of the changes in the text and in the digital
offerings from the previous edition to this edition.

Student Support Materials

• MindTap brings together quality learning and convenience through seamless, LMS
integrated access to a curated set learning tools designed intentionally for the Principles
of Management learner. Each MindTap follows a “Learn It, Apply It, Study It” structure
that guides students through bite sized learning exercises, followed by authentic
scenario-based application opportunities and then gives them the necessary tools to
prepare for quizzes and exams.
• WHY DOES THIS TOPIC MATTER TO ME? Each major part of the course is
introduced in MindTap with a “Why Does [This Topic] Matter to Me?” to help
showcase relevance and applicability of the material students are about to learn–in an
engaging, fun format.
• LEARN IT ACTIVITIES: New “Learn It” modules are designed to help students
learn the basics of theories and concepts presented in a chapter through digestible
summaries and randomized questions that help check their comprehension of the
chapter material.

• APPLY IT CHAPTER ASSIGNMENTS & CASE ACTIVITIES: “Apply It” Chapter

Assignments and Case Activities bridge the understanding of concepts with their r eal-
world applications in the practice of management.
• STUDY IT: The “Study It” module for each chapter includes Practice Tests powered by
A+ Test Prep, a student-powered practice exam tool that allows them to tailor practice
tests to fit their needs, and receive immediate feedback and links back to the material
they need to review. The “Study It” module also contains digital flashcards to help
students practice key terminology and a student-facing version of the PowerPoint slides
that accompany the text.
• YOU MAKE THE DECISION: You Make the Decision mini-simulation activities build
critical thinking and decision-making skills by challenging students to use what they
know about concepts and theories in the context of a scenario as it unfolds. Throughout
the scenario, the student would be provided with information and subsequently faced
with decisions. The scenario can change dynamically based on the decisions the
students make throughout the short simulation, resulting in different end points that
showcase the consequences of the decisions made along the way.

Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Acknowledgments
I would like to acknowledge the many contributions that others have made to this book. My
faculty colleagues at Texas A&M University have contributed enormously both to this book
and to my thinking about management education. The contributions of Erin Hoelscher,
my student assistant, and Phyllis Washburn, my staff assistant, have been invaluable to
this revision. My colleague Brad Wesner also handled the revision of the communications
chapter. The fine team of professionals at Cengage Learning has been instrumental in the
success of this book. Joe Sabatino, Heather Mooney, Allie Janneck, Courtney Wolstoncroft,
Kate Begley Reed, Carol Moore, Chandrasekar Subramani, and Mohanarengan Dilli all
contributed in myriad ways to this edition. Their attention to detail, student and learning
focus, and emphasis on quality have been uniformly impressive.
Many reviewers have played a critical role in the continuous evolution and improve-
ment of this project. They examined my work in detail and with a critical eye. I would like
to tip my hat to the following reviewers, whose imprint can be found throughout this text:
Joseph Adamo (Cazenovia College), Sally Alkazin (Linfield College), Robert Ash
(Santiago Canyon College), Sherryl Berg-Ridenour (DeVry College–Pomona), Alain Broder
(Touro College), Murray Brunton (Central Ohio Tech), Sam Chapman (Diablo Valley
College), Elizabeth Anne Christo-Baker (Terra Community College), Gary Corona (Florida
Community College–Jacksonville), Dr. Anne Cowden (California State University),
Suzanne Crampton (Grand Valley State University), Thomas DeLaughter (University
of Florida), Anita Dickson (Northampton Community College), Joe Dobson (Western
Illinois University), Michael Dutch (University of Houston), Dale Eesley (University of
Nebraska–Omaha), Norb Elbert (Eastern Kentucky University), Teri Elkins (University
of Houston), Jan Feldbauer (Schoolcraft College), Tamela D. Ferguson (University of
Louisiana at Lafayette), Anne Fiedler (Barry University), Eugene Garaventa (College of
Staten Island), Phillip Gonsher (Johnson Community College), Patricia Green (Nassau
Community College), John Guess (Delgado Community College), Joseph S. Hooker, Jr.
(North Greenville College), David Hudson (Spalding University), George W. Jacobs (Middle
Tennessee State University), Tim McCabe (Tompkins Cortland Community College),
Garry McDaniel (Franklin University), Lauryn Migenes (University of Central Florida),
Christopher Neck (Arizona State University), Judy Nixon (University of Tennessee–
Chattanooga), Ranjna Patel (Bethune–Cookman College), Lisa Reed (University of
Portland), Virginia Rich (Caldwell College), Dr. Joan Rivera (Angelo State University),
Roberta B. Slater (Pennsylvania College of Technology), Bob Smoot (Hazard Community
College), Howard Stanger (Canisius College), Sheryl A. Stanley (Newman University),
Roy Strickland (Ozarks Technical Community College), Mike L. Stutzman (Mt. Mercy
College and Kirkwood College), Abe Tawil (Baruch University), Lynn Turner (California
Polytech University–Pomona), Barry Van Hook (Arizona State University), Ruth Weatherly
(Simpson College), and Mary Williams (Community College of Nevada).

xxiii

My wife, Glenda, and our children, Dustin, Ashley, Matt, and Lura, are of course due the
greatest thanks. Their love, care, interest, and enthusiasm help sustain me in all that I do. And
my grandchildren, Griffin, Sutton, Drew, and Ben, bring joy to my heart and a smile to my
face every time I think about them.
I enthusiastically invite your feedback on this book. If you have any questions, sugges-
tions, or issues to discuss, please feel free to contact me. The most efficient way to reach me is
through email at rgriffin@tamu.edu.
R.W.G.

Understanding the
Manager’s Job

Learning Outcomes
After studying this chapter, you should be able to:
1-1 Describe management and the kinds of managers found in organizations.
1-2 Explain the four basic management functions.
1-3 Describe the fundamental management skills and the concept of manage-
ment as both science and art.
1-4 Explain the importance of history and theory to managers.
1-5 Explain the evolution of management thought through the classical,
behavioral, and quantitative perspectives.
1-6 Discuss the key contemporary management perspectives represented by
the systems and contingency perspectives.
1-7 Identify the major challenges and opportunities faced by managers
today.

I n this chapter, we examine the general nature of management, its dimensions, and its
challenges. We explain the basic concepts of management and managers, discuss the
management process, and summarize the origins of contemporary management thought.
We conclude this chapter by introducing critical challenges and issues that managers are
facing now and will continue to encounter in the future. First, however, let’s examine the
work of one successful manager, Reed Hastings.

Management in Action

Reed Hastings Creates Chaos with Netflix

“Don’t be afraid to change the model.”
—Netflix CEO Reed Hastings

Several years ago, Reed Hastings, a California entrepreneur, incurred a $40 late fee
at Blockbuster. “It was six weeks late,” he admits. “I had misplaced the cassette
[and] I didn’t want to tell my wife. . . . I was embarrassed about it.” The next day
he dropped off the VHS cassette and paid the late fee on his way to the local gym.
As it turns out, his itinerary for the day was quite opportune: In the middle of his
workout, he recalls, “I realized [the gym] had a much better business model. You
could pay $30 or $40 a month and work out as little or as much as you wanted.”
Thus was born the idea for Netflix—paying a monthly fee for unlimited video
rentals. But Hastings knew he needed to start slowly. So, when Netflix was
launched in 1997, its only real innovation involved the convenience of ordering
1

movies online and receiving and returning them by mail;

Netflix merely rented movies for $4 apiece plus $2 for
postage (and, yes, it charged late fees). Basically, the
customer base consisted of people who wanted to watch
movies without having to leave their home. But Hastings
and cofounder Marc Randolph then quickly moved to
test the subscription-based model, unlimited rentals

karen roach/Shutterstock.com
by mail for a flat fee, and, perhaps more important, no
due dates (and thus no late fees). Current customers
were first offered the opportunity to shift from their
pay-per-rental plans to subscription plans on a free, trial
basis and then given the chance to renew the subscription
plan on a paid basis. “We knew it wouldn’t be terrible,”
says Hastings, “but we didn’t know if it would be great.”
In the first month, however, 80 percent of Netflix users who’d tried the no-cost
subscription plan had renewed on a paid basis.
“Having unlimited due dates and no late fees,” said Hastings back in 2003, “has
worked in a powerful way and now seems obvious, but at that time, we had no idea
if customers would even build and use an online queue.” The “queue,” as any long-
time Netflix user will tell you, was the list of movies that the customer wanted to
watch. Netflix maintained your queue, followed your online directions in keeping
it up to date, and automatically sent you the next movie you wanted each time you
sent one back.
The essence of queuing—and of the original Netflix business model—is clearly
convenience. Today, with most users streaming content rather than using DVDs,
Netflix has replaced traditional queuing with menus that keep track of what shows
you have been watching and suggesting new ones related to your viewing habits.
Although the ability to enhance customer convenience, even when combined with
cost savings, often gives a company a competitive advantage in its industry, it
doesn’t always have the industrywide effect that it has had in the case of Netflix. Not
only did the Netflix subscriber model improve the service provided by the industry
in an unexpected way, but ultimately it also weakened the competitive positions
of companies already doing business in the industry—notably, Blockbuster.
Blockbuster eventually declared bankruptcy and its few remaining assets are now
owned by Dish Network. Netflix, meanwhile, has seen its market cap soar above the
$50 billion mark by mid-2016 with more than 61 million subscribers in 57 countries.
How had Hastings’s upstart company managed to put itself in such an enviable
position? For one thing, it got off to a fast start. In 1997, when DVDs were just being
test-marketed in the United States, Hastings and Randolph gambled that the new
medium would eventually overtake videocassettes as the format of choice for both
the home-movie industry and the home-movie renter. They were right, of course—
by 2002, one in four U.S. households owned a DVD player, but the number today is
more than nine in ten. (In any case, it would have cost about $4 to mail a videocas-
sette both ways compared to the $0.78 that it costs to ship a DVD back and forth.)
More important, as the first company to rent movies by mail, Netflix was the
first to establish a rental-by-mail customer base. At first, says Hastings, “people
thought the idea was crazy. But it was precisely because it was a contrarian idea
that [it] enabled us to get ahead of our competitors.” As Netflix has continued to
expand and nurture its subscriber base, it has also generated both brand recogni-
tion and brand loyalty. “Netflix has customer loyalty. It’s a passion brand,” explains
Hastings, who hastens to add that keeping customers happy is crucial “because the
more someone uses Netflix, the more likely they are to stay with us.”
Netflix also puts a premium on hiring the very best people. Hastings hires bright
people, pays them above-market wages, and provides innovative and interesting
benefits. For instance, Netflix employees can take as much vacation time as they

want so long as they perform their jobs at a high level. But at the same time, the firm
has very high performance standards and employees sometimes complain about
too much pressure. As Hastings says, “We treat our top performers very well. We
organization provide average employees with reasonable severance package[s].”
A group of people Today Netflix continues to be at the forefront of innovation and has established
working together a strong position in the growing video-on-demand market. In 2013, the company
in a structured and
obtained exclusive rights to distribute the original series The House of Cards,
coordinated fashion to
Hemlock Grove, Orange Is the New Black, and the revival of Arrested Development.
achieve a set of goals
Netflix soon began to expand its list of original offerings such as Russian Doll and
Unbelievable and by 2020 was showing more original series and movies than any
management other media outlet. All told, Netflix’s 61 million subscribers watch about 4 billion
A set of activities hours of programs every quarter on more than 1,000 different devices—indeed, on
(including planning a normal evening, Netflix accounts for over a third of all internet usage in North
and decision making, America! And viewership surged even further during the 2020 COVID-19 pandemic.
organizing, leading, and Never one to stand still, Reed Hastings continues to look for the “next big thing.”
controlling) directed at an
Unlike most traditional managers, Hastings doesn’t have an office. He simply wan-
organization’s resources
ders around headquarters, talking to people about their work and their ideas, and
(human, financial,
physical, and information) occasionally grabbing an empty chair or desk to check his email. When he needs
with the aim of achieving solitude to think and ponder major decisions, he retreats to a rooftop “cube” with
organizational goals in four glass walls overlooking the Santa Cruz Mountains. And from that cube, Hast-
an efficient and effective ings will continue to ponder his next set of moves.1
manner

1-1 AN INTRODUCTION TO MANAGEMENT

An organization is a group of people working together in a structured and coordinated
fashion to achieve a set of goals, which may include profit (Netflix, Starbucks, and Facebook),
manager the discovery of knowledge (the University of Nebraska or the National Science Foundation),
Someone whose primary
national defense (the U.S. Navy or Marines), the coordination of various local charities (the
responsibility is to carry
out the management
United Way of America), or social satisfaction (a fraternity or sorority).
process Managers are responsible for using the organization’s resources to help achieve its goals.
More precisely, management can be defined as a set of activities (including planning
efficient and decision making, organizing, leading, and controlling) directed at an organization’s
Using resources wisely in resources (human, financial, physical, and information) with the aim of achieving
a cost-effective way organizational goals in an efficient and effective manner. A manager, then, is someone
effective whose primary responsibility is to carry out the management process. By efficient, we
Making the right decisions mean using resources wisely in a cost-effective way. By effective, we mean making the right
and successfully decisions and successfully implementing them. In general, successful organizations are both
implementing them efficient and effective.2
Today’s managers face myriad interesting and challenging
situations. The average executive works at least 62.5 hours a
week; has enormous demands placed on his or her time; and faces
Axel Bueckert/Shutterstock.com

increased complexities posed by globalization, domestic competition,

government regulation, shareholder pressure, emerging technologies,
the growing impact of social media, and other technology-driven
uncertainties. Their job is complicated even more by rapid changes,
unexpected disruptions (such as the COVID-19 pandemic in 2020),
and both minor and major crises. The manager’s job is unpredictable
To be effective, businesses must produce products and fraught with challenges, but it is also filled with opportunities
that consumers are willing to buy. A company like Sony to make a difference. Good managers can propel an organization
could very efficiently produce portable cassette tape
into unprecedented realms of success, whereas poor managers can
players like this one but will not be successful.
devastate even the strongest of organizations.3

1-1a Kinds of Managers

Many different kinds of managers work in organizations today. Figure 1.1 shows how various
kinds of managers within an organization can be differentiated by level and by area.

Levels of Management One way to classify managers is in terms of their level in the
organization. Top managers make up the relatively small group of executives who manage the
overall organization. Titles found in this group include president, vice president (VP), and chief
executive officer (CEO). Top managers create the organization’s goals, overall strategy, and
operating policies. They also officially represent the organization to the external environment
by meeting with government officials, executives of other organizations, and so forth.
Reed Hastings is a top manager. Kevin Johnson, CEO of Starbucks, is also a top manager,
as is Matthew Ryan, the firm’s global chief marketing executive. Likewise, Mark Zuckerberg
(Facebook’s founder and top executive), Tim Cook (CEO of Apple), and Mary Barra (CEO of
General Motors) are also top managers. The job of a top manager is likely to be complex and
varied. Top managers make decisions about activities such as acquiring other companies,
investing in R&D, entering or abandoning various markets, and building new plants and office
facilities. They often work long hours and spend much of their time in meetings or on their
phones. In most cases, top managers are also very well paid. In fact, the elite top managers of
very large firms sometimes make several million dollars a year in salary, bonuses, and stock.4
In 2019, Starbucks’ Kevin Johnson received total compensation of $13.4 million. This total
included a base salary, a bonus, stock and option awards, and other forms of compensation.

Levels of Management

Top managers

Middle managers

First-line managers
g

n
ns

r
he
tio
tin

rc
an

Ot
u

ra
ke

at
Fin

ist
er
ar

re
Op

in
M

m
Ad
m
Hu

Areas of Management

F I G U R E 1.1

Kinds of Managers by Level and Area

Organizations generally have three levels of management, represented by top
managers, middle managers, and first-line managers. Regardless of level, managers
are also usually associated with a specific area within the organization, such as
marketing, finance, operations, human resources, administration, or some other area.

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forehead is crowned with the undying crown of thorns, which is
driven down until the flesh is made to bleed.
Before this figure you may see kneeling, any day, not one but
many specimens of those by whom the world has dealt very poorly.
Their hands are rough, their faces worn and dull; on the gnarled and
weary bodies are hung clothes of which you and I would be
ashamed. Some carry bags, others huge bundles. With hands
extended upward, their faces bearing the imprint of unquestioning
faith, they look into the soft, pain-exhausted face of the Christ,
imploring that aid and protection which the ordinary organization of
society does not and cannot afford. It is in this church, as it seems
to me, that the hour’s great lesson of tenderness is given.
I call the world’s attention to this picture with the assurance that
this is the great, the beautiful, and the important lesson. If there be
those who do not see in the body-racked figure of Christ an honest
reiteration of an actual event, who cannot honestly admit that such
a thing could have reasonably occurred, there is still a lesson just as
impressive and just as binding as though it had. These people whom
you see kneeling here and lifting up their hands present an actuality
of faith which cannot be denied. This Christ, if to you and to me a
myth, is to them a reality. And in so far as He is real to them He
implies an ardent desire on the part of the whole human race for
tenderness and mercy which it may be as well not to let go
unanswered. For if Christ did not suffer, if His whole life-story was a
fiction and a delusion, then all the yearning and all the faith of
endless millions of men, who have lived believing and who died
adoring, only furnishes proof that the race really needs such an ideal
—that it must have tenderness and mercy to fly to or it could not
exist.
Man is a hopeful animal. He lives by the belief that some good
must accrue to him or that his life is not worth the living. It is this
faith then, that in disaster or hours of all but unendurable misery
causes him to turn in supplication to a higher power, and unless
these prayers are in some measure answered, that faith can and will
be destroyed, and life will and does become a shambles indeed.
Hence, if one would balance peace against danger and death it
becomes necessary for each to act as though the ideals of the world
are in some sense real and that he in person is sponsor for them.
These prayers that are put up, and these supplications, if not
addressed to the actual Christ, are nevertheless sent to that sum of
human or eternal wisdom or sympathy as you will of which we are a
part. If you believe that hope is beautiful and that mercy is a virtue,
if you would have the world more lovely and its inhabitants more
kind, if you would have goodness triumph and sorrow laid aside,
then you must be ready to make good to such supplicants and
supplications as fall to you the virtues thus pathetically appealed to.
You must act in the name of tenderness. If you cannot or will not, by
so much is the realization of human ideals, the possibility of living
this life at all decently by any, made less.
THE PUSHCART MAN

One of the most appealing and interesting elements in city life,

particularly that metropolitan city life which characterizes New York,
is the pushcart man. This curious creature of modest intellect and
varying nationality infests all the highways of the great city without
actually dominating any of them except a few streets on the East
Side. He is as hard-working, in the main, as he is ubiquitous. His cart
is so shabby, his stock in trade so small. If he actually earns a
reasonable wage it is by dint of great energy and mere luck, for the
officers of the law in apparently every community find in the
presence of this person an alluring source of profit and he is picked
and grafted upon as is perhaps no other member of the
commonplace brotherhood of trade.
I like to see them trundling their two-wheeled vehicles about the
city, and I like to watch the patience and the care with which they
exercise their barely tolerated profession of selling. You see them
everywhere; vendors of fruit, vegetables, chestnuts on the East Side,
selling even dry goods, hardware, furs and groceries; and elsewhere
again the Greeks selling neckwear, flowers and curios, the latter
things at which an ordinary man would look askance, but which the
lower levels of society somehow find useful.
I have seen them tramping in long files across Williamsburg
Bridge at one, two and three o’clock in the morning to the Wallabout
Market in Brooklyn. And I have seen them clambering over
hucksters’ wagons there and elsewhere searching for the choicest
bits, which they hope to sell quickly. The market men have small
consideration for them and will as lief strike or kick at them as to
reach a bargain with them.
For one thing, I remember watching an old pushcart vendor one
sweltering afternoon in summer from one o’clock in the afternoon to
seven the same evening, and I was never more impressed with the
qualities which make for success in this world, qualities which are
rare in American life, or in any life, for that matter, for patience and
good nature and sturdy charitable endurance are not common
qualities anywhere.
He had his stand at Sixth Avenue and Twenty-third Street, New
York, then the center of the shopping life of the city—or I had better
say that he attempted to keep it there, for he was not altogether
successful. He was a dark, gray-headed, grizzle-cheeked “guinea” or
“dago,” as he was scornfully dubbed by the Irish policeman who
made his life a burden. His eye was keen, his motion quick, his
general bodily make-up active, despite the fact that he was much
over fifty years of age.
“That’s a good one,” the Irish policeman observed to me in
passing, noting that I was looking at him. “He’s a fox. A fine time I
have keeping my eye on him.”
The old Italian seemed to realize that we were talking about him
for he shifted the position of his cart nervously, moving it forward a
few feet. Finding himself undisturbed, he remained there. Presently,
however, a heavy ice-wagon lumbered up from the west and swung
in with a reckless disregard of the persons, property and privileges
of the vendors who were thus unobtrusively grouped together. At
the same time the young Irish-American driver raised his voice in a
mighty bellow:
“Get out of there! Move on out! What the hell d’ye want to block
up the street for, anyway? Go on!”
With facile manipulation of his reins he threw his wagon tongue
deliberately among them and did his best to cause some damage in
order to satisfy his own passing irritation.
All three vendors jumped to the task of extricating their carts,
but I could not help distinguishing the oldest of the three for the
dexterity with which he extricated his and the peaceful manner in
which he pushed it away. The lines of his face remained practically
undisturbed. All his actions denoted a remarkable usedness to
difficulty. Not once did he look back, either to frown or complain.
Instead, his only concern was to discover the whereabouts of the
policeman. For him he searched the great crowd in every direction,
even craning his neck a little. When he had satisfied himself that the
coast was clear, he pushed in close to the sidewalk again and began
his wait for customers.
While he was thus waiting the condition of his cart and the
danger of an unobserved descent on the part of a policeman
engaged his entire attention. Some few peaches had fallen awry,
and these he busily straightened. One pile of those which he was
selling “two for five” had now become low and this he replenished
from baskets of hitherto undisturbed peaches, carefully dusting the
fuzz off each one with a small brush in order to heighten their
beauty and add to the attractiveness of the pile. Incidentally his eye
was upon the crowd, for every once in a while his arm would stretch
out in a most dramatic manner, inviting a possible purchaser with his
subtle glance.
The Push-cart Man

“Peaches! Fine! Peaches! Fine! Fine!”

Whenever a customer came close enough, these words were
called to him in a soft, persuasive tone. He would bend gracefully
forward, pick up a peach as if the mere lifting of it were a sufficient
inducement, take up a paper bag as if the possible transaction were
an assured thing, and look engagingly into the passerby’s eyes.
When it was really settled that a purchase was intended, no word,
however brief, could fail to convey to him the import of the situation
and the number of peaches desired.
“Five—ten.” The mention of a sum of money. “These,” or your
hand held up, would bring quickly what you desired.
Grace was the perfect word with which to describe this man’s
actions.
From one until seven o’clock of this sweltering afternoon, every
moment of his time was occupied. The police made it difficult for
him to earn his living, for the simple reason that they were
constantly making him move on. Not only the regular policemen of
the beat, but the officers of the crossing, and the wandering
wayfarers from other precincts all came forward at different times
and hurried him away.
“Get out, now!” ordered one, in a rough and even brutal tone.
“Move on. If I catch you around here any more to-day I’ll lock you
up.”
The old Italian lowered his eyes and hustled his cart out into the
sun.
“And don’t you come back here any more,” the policeman called
after him; then turning to me he exclaimed: “Begob, a man pays a
big license to keep a store, and these dagos come in front of his
place and take all his business. They ought to be locked up—all of
them.”
“Haven’t they a right to stand still for a moment?” I inquired.
“They have,” he said, “but they haven’t any right to stand in
front of any man’s place when he don’t want them there. They drive
me crazy, keeping them out of here. I’ll shoot some of them yet.”
I looked about to see what if any business could be injured by
their stopping and selling fruit, but found only immense
establishments dealing in dry goods, drugs, furniture and the like.
Some one may have complained, but it looked much more like an
ordinary case of official bumptiousness or irritation.
At that time, being interested in such types, I chose to follow
this one, to see what sort of a home life lay behind him. It was not
difficult. By degrees, and much harried by the police, his cart with
only a partially depleted stock was pushed to the lower East Side, in
Elizabeth Street, to be exact. Here he and his family—a wife and
three or four children—occupied two dingy rooms in a typical East
Side tenement. Whether he was at peace with his swarthy,
bewrinkled old helpmate I do not know, but he appeared to be, and
with his several partially grown children. On his return, two of them,
a boy and a girl, greeted him cheerfully, and later, finding me
interested and following him, and assuming that I was an officer of
the law, quickly explained to me what their father did.
“He’s a peddler,” said the boy. “He peddles fruit.”
“And where does he get his fruit?” I asked.
“Over by the Wallabout. He goes over in the morning.”
I recalled seeing the long procession of vendors beating a
devious way over the mile or more of steel bridge that spans the
East River at Delancey Street, at one and two and three of a winter
morning. Could this old man be one of these tramping over and
tramping back before daylight?
“Do you mean to say that he goes over every day?”
“Sure.”
The old gentleman, by now sitting by a front window waiting for
his dinner and gazing down into the sun-baked street not at all
cooled by the fall of night, looked down and for some reason smiled.
I presume he had seen me earlier in the afternoon. He could not
know what we were talking about, however, but he sensed
something. Or perhaps it was merely a feeling of the need of being
pleasant.
Upon making my way to the living room and kitchen, as I did,
knowing that I could offer a legal pretext, I found the same shabby
and dark, but not dirty. An oil stove burned dolefully in the rear. Mrs.
Pushcart Man was busy about the evening meal.
The smirks. The genuflections.
“And how much does your father make a day?” I finally asked,
after some other questions.
This is a lawless question anywhere. It earned its own reward.
The son inquired of the father in Italian. The latter tactfully shrugged
his shoulders and held out his hands. His wife laughed and shrugged
her shoulders.
“‘One, two dollars,’ he says,” said the boy.
There was no going back of that. He might have made more.
Why should he tell anybody—the police or any one else?
And so I came away.
But the case of this one seemed to me to be so typical of the lot
of many in our great cities. All of us are so pushed by ambition as
well as necessity. Yet all the feelings and intuitions of the average
American-born citizen are more or less at variance with so shrewd
an acceptance of difficulties. We hurry more, fret and strain more,
and yet on the whole pretend to greater independence. But have we
it? I am sure not. When one looks at the vast army of clerks and
underlings, pushing, scheming, straining at their social leashes so
hopelessly and wearing out their hearts and brains in a fruitless
effort to be what they cannot, one knows that they are really no
better off and one wishes for them a measure of this individual’s
enduring patience.
A VANISHED SEASIDE RESORT

At Broadway and Twenty-third Street, where later, on this and some

other ground, the once famed Flatiron Building was placed, there stood
at one time a smaller building, not more than six stories high, the
northward looking blank wall of which was completely covered with a
huge electric sign which read:

SWEPT BY OCEAN BREEZES

THE GREAT HOTELS
PAIN’S FIREWORKS
SOUSA’S BAND
SEIDL’S GREAT ORCHESTRA
THE RACES
NOW—MANHATTAN BEACH—NOW

Each line was done in a different color of lights, light green for the
ocean breezes, white for Manhattan Beach and the great hotels, red for
Pain’s fireworks and the races, blue and yellow for the orchestra and
band. As one line was illuminated the others were made dark, until all
had been flashed separately, when they would again be flashed
simultaneously and held thus for a time. Walking up or down Broadway
of a hot summer night, this sign was an inspiration and an invitation. It
made one long to go to Manhattan Beach. I had heard as much or more
about Atlantic City and Coney Island, but this blazing sign lifted
Manhattan Beach into rivalry with fairyland.
“Where is Manhattan Beach?” I asked of my brother once on my
first coming to New York. “Is it very far from here?”
“Not more than fifteen miles,” he replied. “That’s the place you
ought to see. I’ll take you there on Sunday if you will stay that long.”
Since I had been in the city only a day or two, and Sunday was close
at hand, I agreed. When Sunday came we made our way, via horse-cars
first to the East Thirty-fourth Street ferry and then by ferry and train,
eventually reaching the beach about noon.
Never before, except possibly at the World’s Fair in Chicago, had I
ever seen anything to equal this seaward-moving throng. The day was
hot and bright, and all New York seemed anxious to get away. The
crowded streets and ferries and trains! Indeed, Thirty-fourth Street near
the ferry was packed with people carrying bags and parasols and all but
fighting each other to gain access to the dozen or more ticket windows.
The boat on which we crossed was packed to suffocation, and all such
ferries as led to Manhattan Beach of summer week-ends for years
afterward, or until the automobile arrived, were similarly crowded. The
clerk and his prettiest girl, the actress and her admirer, the actor and his
playmate, brokers, small and exclusive tradesmen, men of obvious
political or commercial position, their wives, daughters, relatives and
friends, all were outbound toward this much above the average resort.
It was some such place, I found, as Atlantic City and Asbury Park
are to-day, yet considerably more restricted. There was but one way to
get there, unless one could travel by yacht or sail-boat, and that was via
train service across Long Island. As for carriage roads to this wonderful
place there were none, the intervening distance being in part occupied
by marsh grass and water. The long, hot, red trains leaving Long Island
City threaded a devious way past many pretty Long Island villages, until
at last, leaving possible home sites behind, the road took to the great
meadows on trestles, and traversing miles of bending marsh grass astir
in the wind, and crossing a half hundred winding and mucky lagoons
where lay water as agate in green frames and where were white cranes,
their long legs looking like reeds, standing in the water or the grass, and
the occasional boat of a fisherman hugging some mucky bank, it arrived
finally at the white sands of the sea and this great scene. White sails of
small yachts, the property of those who used some of these lagoons as
a safe harbor, might be seen over the distant grass, their sails full
spread, as one sped outward on these trains. It was romance, poetry,
fairyland.
And the beach, with its great hotels, held and contained all summer
long all that was best and most leisurely and pleasure-loving in New
York’s great middle class of that day. There were, as I knew all the time,
other and more exclusive or worse beaches, such as those at Newport
and Coney Island, but this was one which served a world which was
plainly between the two, a world of politicians and merchants, and
dramatic and commercial life generally. I never saw so many
prosperous-looking people in one place, more with better and smarter
clothes, even though they were a little showy. The straw hat with its
blue or striped ribbon, the flannel suit with its accompanying white
shoes, light cane, the pearl-gray derby, the check suit, the diamond and
pearl pin in necktie, the silk shirt. What a cool, summery, airy-fairy
realm!
And the women! I was young and not very experienced at the time,
hence the effect, in part. But as I stepped out of the train at the beach
that day and walked along the boardwalks which paralleled the sea,
looking now at the blue waters and their distant white sails, now at the
great sward of green before the hotels with its formal beds of flowers
and its fountains, and now at the enormous hotels themselves, the
Manhattan and the Oriental, each with its wide veranda packed with a
great company seated at tables or in rockers, eating, drinking, smoking
and looking outward over gardens to the blue sea beyond, I could
scarcely believe my eyes—the airy, colorful, summery costumes of the
women who made it, the gay, ribbony, flowery hats, the brilliant
parasols, the beach swings and chairs and shades and the floating
diving platforms. And the costumes of the women bathing. I had never
seen a seaside bathing scene before. It seemed to me that the fabled
days of the Greeks had returned. These were nymphs, nereids, sirens in
truth. Old Triton might well have raised his head above the blue waves
and sounded his spiral horn.
And now my brother explained to me that here in these two
enormous hotels were crowded thousands who came here and lived the
summer through. The wealth, as I saw it then, which permitted this!
Some few Western senators and millionaires brought their yachts and
private cars. Senator Platt, the State boss, along with one or more of the
important politicians of the State, made the Oriental, the larger and
more exclusive of the two hotels, his home for the summer. Along the
verandas of these two hotels might be seen of a Saturday afternoon or
of a Sunday almost the entire company of Brooklyn and New York
politicians and bosses, basking in the shade and enjoying the beautiful
view and the breezes. It was no trouble for any one acquainted with the
city to point out nearly all of those most famous on Broadway and in the
commercial and political worlds. They swarmed here. They lolled and
greeted and chatted. The bows and the recognitions were innumerable.
By dusk it seemed as though nearly all had nodded or spoken to each
other.
And the interesting and to me different character of the
amusements offered here! Out over the sea, at one end of the huge
Manhattan Hotel, had been built a circular pavilion of great size, in
which by turns were housed Seidl’s great symphony orchestra and
Sousa’s band. Even now I can hear the music carried by the wind of the
sea. As we strolled along the beach wall or sat upon one or the other of
the great verandas we could hear the strains of either the orchestra or
the band. Beyond the hotels, in a great field surrounded by a board
fence, began at dusk, at which time the distant lighthouses over the bay
were beginning to blink, a brilliant display of fireworks, almost as visible
to the public as to those who paid a dollar to enter the grounds. Earlier
in the afternoon I saw many whose only desire appeared to be to reach
the race track in time for the afternoon races. There were hundreds and
even thousands of others to whom the enclosed beach appeared to be
all. The hundreds of dining-tables along the veranda of the Manhattan
facing the sea seemed to call to still other hundreds. And yet again the
walks among the parked flowers, the wide walk along the sea, and the
more exclusive verandas of the Oriental, which provided no restaurant
but plenty of rocking-chairs, seemed to draw still other hundreds,
possibly thousands.
But the beauty of it all, the wonder, the airy, insubstantial, almost
transparent quality of it all! Never before had I seen the sea, and here it
was before me, a great, blue, rocking floor, its distant horizon dotted
with white sails and the smoke of but faintly visible steamers dissolving
in the clear air above them. Wide-winged gulls were flying by. Hardy
rowers in red and yellow and green canoes paddled an uncertain course
beyond the breaker line. Flowers most artfully arranged decorated the
parapet of the porch, and about us rose a babel of laughing and joking
voices, while from somewhere came the strains of a great orchestra, this
time within one of the hotels, mingling betimes with the smash of the
waves beyond the seawall. And as dusk came on, the lights of the
lighthouses, and later the glimmer of the stars above the water, added
an impressive and to me melancholy quality to it all. It was so
insubstantial and yet so beautiful. I was so wrought up by it that I could
scarcely eat. Beauty, beauty, beauty—that was the message and the
import of it all, beauty that changes and fades and will not stay. And the
eternal search for beauty. By the hard processes of trade, profit and
loss, and the driving forces of ambition and necessity and the love of
and search for pleasure, this very wonderful thing had been
accomplished. Unimportant to me then, how hard some of these people
looked, how selfish or vain or indifferent! By that which they sought and
bought and paid for had this thing been achieved, and it was beautiful.
How sweet the sea here, how beautiful the flowers and the music and
these parading men and women. I saw women and girls for the favor of
any one of whom, in the first flush of youthful ebullience and ignorance,
I imagined I would have done anything. And at the very same time I
was being seized with a tremendous depression and dissatisfaction with
myself. Who was I? What did I amount to? What must one do to be
worthy of all this? How little of all this had I known or would ever know!
How little of true beauty or fortune or love! It mattered not that life for
me was only then beginning, that I was seeing much and might yet see
much more; my heart was miserable. I could have invested and
beleaguered the world with my unimportant desires and my capacity.
How dare life, with its brutal non-perception of values, withhold so much
from one so worthy as myself and give so much to others? Why had not
the dice of fortune been loaded in my favor instead of theirs? Why, why,
why? I made a very doleful companion for my very good brother, I am
sure.
And yet, at that very time I was asking myself who was I that I
should complain so, and why was I not content to wait? Those about
me, as I told myself, were better swimmers, that was all. There was
nothing to be done about it. Life cared no whit for anything save
strength and beauty. Let one complain as one would, only beauty or
strength or both would save one. And all about, in sky and sea and sun,
was that relentless force, illimitable oceans of it, which seemed not to
know man, yet one tiny measure of which would make him of the elect
of the earth. In the dark, over the whispering and muttering waters, and
under the bright stars and in eyeshot of the lamps of the sea, I hung
brooding, listening, thinking; only, after a time, to return to the hot city
and the small room that was mine to meditate on what life could do for
one if it would. The flowers it could strew in one’s path! The beauty it
could offer one—without price, as I then imagined—the pleasures with
which it could beset one’s path.
With what fever and fury it is that the heart seeks in youth. How
intensely the little flame of life burns! And yet where is its true haven?
What is it that will truly satisfy it? Has any one ever found it? In
subsequent years I came by some of the things which my soul at that
time so eagerly craved, the possession of which I then imagined would
satisfy me, but was mine or any other heart ever really satisfied? No.
And again no.
Each day the sun rises, and with it how few with whom a sense of
contentment dwells! For each how many old dreams unfulfilled, old and
new needs unsatisfied. Onward, onward is the lure; what life may still
do, not what it has done, is the all-important. And to ask of any one that
he count his blessings is but an ungrateful bit of meddling at best. He
will none of it. At twenty, at thirty, at sixty, at eighty, the lure is still
there, however feeble. More and ever more. Only the wearing of the
body, the snapping of the string, the weakening of the inherent urge,
ends the search. And with it comes the sad by-thought that what is not
realized here may never again be anywhere. For if not here, where is
that which could satisfy it as it is here? Of all pathetic dreams that which
pictures a spiritual salvation elsewhere for one who has failed in his
dreams here is the thinnest and palest, a beggar’s dole indeed. But that
youthful day by the sea!

* * * * *
Twenty-five years later I chanced to visit a home on the very site of
one of these hotels, a home which was a part of a new real-estate
division. But of that old, sweet, fair, summery life not a trace. Gone were
the great hotels, the wall, the flowers, the parklike nature of the scene.
In twenty-five years the beautiful circular pavilion had fallen into the sea
and a part of the grounds of the great Manhattan Hotel had been eaten
away by winter storms. The Jersey Coast, Connecticut, Atlantic City,
aided by the automobile, had superseded and effaced all this. Even the
great Oriental, hanging on for a few years and struggling to
accommodate itself to new conditions, had at last been torn down. Only
the beach remained, and even that was changed to meet new
conditions. The land about and beyond the hotels had been filled in,
planted to trees, divided by streets and sold to those who craved the
freshness of this seaside isle.
But of this older place not one of those with whom I visited knew
aught. They had never seen it, had but dimly heard of it. So clouds
gather in the sky, are perchance illuminated by the sun, dissolve, and
are gone. And youth, viewing old realms of grandeur or terror, views the
world as new, untainted, virgin, a realm to be newly and freshly
exploited—as, in truth, it ever is.
But we who were——!
THE BREAD-LINE

It is such an old subject in New York. It has been here so long.

For thirty-five or forty years newspapers and magazines have
discussed the bread-line, and yet there it is, as healthy and vigorous
a feature of the city as though it were something to be desired. And
it has grown from a few applicants to many, from a small line to a
large one. And now it is a sight, an institution, like a cathedral or a
monument.
A curious thing, when you come to think of it. Poverty is not
desirable. Its dramatic aspect may be worth something to those who
are not poor, for prosperous human nature takes considerable
satisfaction in proclaiming: “Lord, I am not as other men,” and
having it proved to itself. But this thing, from any point of view is a
pathetic and a disagreeable thing, something you would feel the city
as a corporation would prefer to avoid. And yet there it is.
For the benefit of those who have not seen it I will describe it
again, though the task is a wearisome one and I have quite another
purpose than that of description in doing so. The scene is the side
door of a bakery, once located at Ninth Street and Broadway, and
now moved to Tenth and Broadway, the line extending toward the
west and Fifth Avenue, where formerly it was to the east and Fourth
Avenue. It is composed of the usual shabby figures, men of all ages,
from fifteen or younger to seventy. The line is not allowed to form
before eleven o’clock, and at this hour perhaps a single figure will
shamble around the corner and halt on the edge of the sidewalk.
Then others, for though they appear to come slowly, some
dubiously, they almost all arrive one at a time. Haste is seldom
manifest in their approach. Figures appear from every direction,
limping slowly, slouching stupidly, or standing with assumed or real
indifference, until the end of the line is reached, when they take
their places and wait.
A low murmur of conversation begins after a time, but for the
most part the men stand in stupid, unbroken silence. Here and there
may be two or three talkative ones, and if you pass close enough
you will hear every topic of the times discussed or referred to,
except those which are supposed to interest the poor. Wretchedness,
poverty, hunger and distress are seldom mentioned. The possibilities
of a match between prize-ring favorites, the day’s evidence in the
latest murder trial, the chance of war somewhere, the latest
improvements in automobiles, a flying machine, the prosperity or
depression of some other portion of the world, or the mistakes of
the government at Washington—these, or others like them, are the
topics of whatever conversation is held. It is for the most part a
rambling, disconnected conversation.
“Wait until Dreyfus gets out of prison,” said one to his little black-
eyed neighbor one night, years ago, “and you’ll see them guys fallin’
on his neck.”
“Maybe they will, and maybe they won’t,” the other muttered.
“Them Frenchmen ain’t strong for Jews.”
The passing of a Broadway car awakens a vague idea of
progress, and some one remarks: “They’ll have them things runnin’
by compressed air before we know it.”
“I’ve driv’ mule-cars by here myself,” replies another.
A few moments before twelve a great box of bread is pushed
outside the door, and exactly on the hour a portly, round-faced
German takes his position by it, and calls: “Ready!” The whole line at
once, like a well-drilled company of regulars, moves quickly, in good
marching time, diagonally across the sidewalk to the inner edge and
pushes, with only the noise of tramping feet, past the box. Each man
reaches for a loaf and, breaking line, wanders off by himself. Most of
them do not even glance at their bread but put it indifferently under
their coats or in their pockets. They betake themselves heaven
knows where—to lodging houses, park benches (if it be summer),
hall-bedrooms possibly, although in most cases it is doubtful if they
possess one, or to charitable missions of the poor. It is a small thing
to get, a loaf of dry bread, but from three hundred to four hundred
men will gather nightly from one year’s end to the other to get it,
and so it has its significance.
The thing that I protest against is that it endures. It would be so
easy, as it seems to me, in a world of even moderate organization to
do something that would end a spectacle of this kind once and for
all, if it were no more than a law to destroy the inefficient. I say this
not in cruelty but more particularly with the intention of awakening
thought. There is so much to do. In America the nation’s roads have
not even begun to be made. Over vast stretches of the territory of
the world the land is not tilled. There is not a tithe made of what the
rank and file could actually use. Most of us are wanting strenuously
for something.
A rule that would cause the arrest of a man in this situation
would be merciful. A compulsory labor system that would involve
regulation of hours, medical treatment, restoration of health,
restoration of courage, would soon put an end to the man who is
“down and out.” He would of course be down and out to the extent
that he had fallen into the clutches of this machine, but he would at
least be on the wheel that might bring him back or destroy him
utterly. It is of no use to say that life cannot do anything for the
inefficient. It can. It does. And the haphazard must, and in the main
does, give way to the well-organized. And the injured man need not
be allowed to bleed to death. If a man is hurt accidentally a hospital
wagon comes quickly. If he is broken in spirit, moneyless, afraid,
nothing is done. Yet he is in far greater need of the hospital wagon
than the other. The treatment should be different, that is all.
OUR RED SLAYER

If you wish to see an exemplification of the law of life, the

survival of one by the failure and death of another, go some day to
any one of the great abattoirs which to-day on the East River, or in
Jersey City, or elsewhere near the great metropolis receive and slay
annually the thousands and hundreds of thousands of animals that
make up a part of the city’s meat supply. And there be sure and see,
also, the individual who, as your agent and mine, is vicariously
responsible for the awful slaughter. You will find him in a dark, red
pit, blood-covered, standing in a sea of blood, while hour after hour
and day after day there passes before him a line of screaming
animals, hung by one leg, head down, and rolling steadily along a
rail, which is slanted to get the benefit of gravity, while he, knife in
hand, jabs unweariedly at their throats, the task of cutting their
throats so that they may die of bleeding and exhaustion having
become a wearisome and commonplace labor, one which he scarcely
notices at all. He is a blood-red slayer, this individual, a butcher by
trade, big, brawny, muscular, but clothed from head to foot in a
tarpaulin coat and cap, which from long spattering by the blood of
animals he has slain, have become this darksome red. Day after day
and month after month here you may see him—your agent and mine
—the great world wagging its way, the task of destroying life never
becoming less arduous, the line of animals never becoming less thin.
A peculiar life to lead, is it not? One would think a man of any
sensibility would become heartsick, or at the least, revolted and
disgusted; but this man does not seem to be. Rather, he takes it as a
matter of course, a thing which has no significance, any more than
the eating of his food or the washing of his hands. Since it is a
matter of business or of living, and seeing that others live by his
labor, he does not care.
But it has significance. These creatures we see thus
automatically and hopelessly trundling down a rail of death are really
not so far removed from us in the scale of existence. You will find
them but a little way down the ladder of mind, climbing slowly and
patiently towards those heights to which we think we have
permanently attained. There is a force back of them, a law which
wills their existence, and they do not part with it readily. There is a
terror of death for them as there is for us, and you will see it here
exemplified, the horror that makes them run cold with the
knowledge of their situation.
You will hear them squeal, the hogs; you will hear them baa, the
sheep; you will hear the grinding clank of the chains and see the
victims dropping: hogs, half-alive, into the vats of boiling water; the
sheep into the range of butchers and carvers who flay them half-
alive; while our red representative—yours and mine—stands there,
stabbing, stabbing, stabbing, that we who are not sheep or hogs
and who pay him for his labor may live and be merry and not die.
Strange, isn’t it?
A gruesome labor. A gruesome picture. We have been flattering
ourselves these many centuries that our civilization had somehow
got away from this old-time law of life living on death, but here amid
all the gauds and refinements of our metropolitan life we find
ourselves confronted by it, and here stands our salaried red man
who murders our victims for us, while we look on indifferently, or
stranger yet, remain blissfully unconscious that the bloody labor is in
existence.
We live in cities such as this; crowd ourselves in ornamented
chambers as much as possible; walk paths from which all painful
indications of death have been eliminated, and think ourselves clean
and kind and free of the old struggle, and yet behold our salaried
agent ever at work; and ever the cry of the destroyed is rising to
what heaven we know not, nor to what gods. We dream dreams of
universal brotherhood and prate of the era of coming peace, but this
slaughter is a stumbling-block over which we may not readily vault.
It augurs something besides peace and love in this world. It forms a
great commentary on the arrangement of the universe.
And yet this revolting picture is not without its relieving feature,
though alas! the little softness visible points no way by which the
victims may be spared. The very butcher is a human being, a father
with little children. One day, after a discouraging hour of this terrible
panorama, I walked out into the afternoon sunlight only to brood
over the tragedy and terror of it all. This man struck me as a demon,
a chill, phlegmatic, animal creature whose horrible eyes would
contain no light save that of non-understanding and indifference.
Moved by some curious impulse, I made my way to his home—to
the sty where I expected to find him groveling—and found instead a
little cottage, set about with grass and flowers, and under a large
tree a bench. Here was my murderer sitting, here taking his
evening’s rest.
The sun was going down, the shadows beginning to fall. In the
cool of the evening he was taking his ease, a rough, horny-handed
man, large and uncouth, but on his knee a child. And such a child—
young, not over two years, soft and delicate, with the bloom of
babyhood on its cheek and the light of innocence in its eye; and
here was this great murderer stroking it gently, the red man
touching it softly with his hand.
I stood and looked at this picture, the thought of the blood-red
pit coming back to me, the gouts of blood, the knife, the cries of his
victims, the death throes; and then at this green grass and this tree
and the father and his child.
Heaven forefend against the mysteries of life and its dangers.
We know in part, we believe in part, but these things surpass the
understanding of man and make our humble consciousness reel with
the inexplicable riddle of existence. To live, to die, to be generous, to
be brutal! How in the scheme of things are the conditions and
feelings inextricably jumbled, and how we grope and stumble
through our days to our graves!
WHENCE THE SONG

Along Broadway in the height of the theatrical season, but more

particularly in that laggard time from June to September, when the
great city is given over to those who may not travel, and to actors
seeking engagements, there is ever to be seen a certain
representative figure, now one individual and now another, of a
world so singular that it might well engage the pen of a Balzac or
that of a Cervantes. I have in mind an individual whose high hat and
smooth Prince Albert coat are still a delicious presence. In his coat
lapel is a ruddy boutonnière, in his hand a novel walking-stick. His
vest is of a gorgeous and affluent pattern, his shoes shiny-new and
topped with pearl-gray spats. With dignity he carries his body and
his chin. He is the cynosure of many eyes, the envy of all men, and
he knows it. He is the successful author of the latest popular song.
Along Broadway, from Union to Greeley Squares, any fair day
during the period of his artistic elevation, he is to be seen. Past the
rich shops and splendid theaters he betakes himself with leisurely
grace. In Thirtieth Street he may turn for a few moments, but it is
only to say good-morning to his publishers. In Twenty-eighth Street,
where range the host of those who rival his successful house, he
stops to talk with lounging actors and ballad singers. Well-known
variety stars nod to him familiarly. Women whose sole claim to
distinction lies in their knack of singing a song, smile in greeting as
he passes. Occasionally there comes a figure of a needy ballad-
monger, trudging from publisher to publisher with an unavailable
manuscript, who turns upon him, in passing, the glint of an envious
glance. To these he is an important figure, satisfied as much with
their envy as with their praise, for is not this also his due, the reward
of all who have triumphed?
I have in mind another figure, equally singular: a rouged and
powdered little maiden, rich in feathers and ornaments of the latest
vogue; gloved in blue and shod in yellow; pretty, self-assured,
daring, and even bold. There has gone here all the traditional
maidenly reserve you would expect to find in one so young and
pleasing, and yet she is not evil. The daughter of a Chicago butcher,
you knew her when she first came to the city—a shabby, wondering
little thing, clerk to a music publisher transferring his business east,
and all eyes for the marvels of city life.
Gradually the scenes and superlatives of elegance, those showy
men and women coming daily to secure or sell songs, have aroused
her longings and ambitions. Why may not she sing, why not she be
a theatrical celebrity? She will. The world shall not keep her down.
That elusive and almost imaginary company known as they, whose
hands are ever against the young, shall not hold her back.
Behold, for a time, then, she has gone; and now, elegant,
jingling with silver ornaments, hale and merry from good living, she
has returned. To-day she is playing at one of the foremost vaudeville
houses. To-morrow she leaves for Pittsburgh. Her one object is still a
salary of five hundred or a thousand a week and a three-sheet litho
of herself in every window and upon every billboard.
“I’m all right now,” she will tell you gleefully. “I’m way ahead of
the knockers. They can’t keep me down. You ought to have seen the
reception I got in Pittsburgh. Say, it was the biggest yet.”
Blessed be Pittsburgh, which has honored one who has
struggled so hard, and you say so.
“Are you here for long?”
“Only this week. Come up and see my turn. Hey, cabbie!”
A passing cabman turns in close to the walk with considerable
alacrity.
“Take me to Keith’s. So long. Come up and see my turn to-
night.”
This is the woman singer, the complement of the male of the
same art, the couple who make for the acceptance and spread of
the popular song as well as the fame of its author. They sing them in
every part of the country, and here in New York, returned from a
long season on the road, they form a very important portion of this
song-writing, song-singing world. They and the authors and the
successful publishers—but we may simplify by yet another picture.
In Twenty-seventh or Twenty-eighth Street, or anywhere along
Broadway from Madison to Greeley Squares, are the parlors of a
score of publishers, gentlemen who coördinate this divided world for
song publishing purposes. There is an office and a reception-room; a
music-chamber, where songs are tried, and a stock room. Perhaps,
in the case of the larger publishers, the music-rooms are two or
three, but the air of each is much the same. Rugs, divans, imitation
palms make this publishing house more bower than office. Three or
four pianos give to each chamber a parlor-like appearance. The walls
are hung with the photos of celebrities, neatly framed, celebrities of
the kind described. In the private music-rooms, rocking-chairs. A boy
or two waits to bring professional copies at a word. A salaried pianist
or two wait to run over pieces which the singer may desire to hear.
Arrangers wait to make orchestrations or take down newly schemed
out melodies which the popular composer himself cannot play. He
has evolved the melody by a process of whistling and must have its
fleeting beauty registered before it escapes him forever. Hence the
salaried arranger.
Into these parlors then, come the mixed company of this
distinctive world: authors who have or have not succeeded, variety
artists who have some word from touring fellows or know the firm,
masters of small bands throughout the city or the country, of which
the name is legion, orchestra-leaders of Bowery theaters and
uptown variety halls, and singers.
“You haven’t got a song that will do for a tenor, have you?”
The inquirer is a little, stout, ruddy-faced Irish boy from the gas-
house district. His common clothes are not out of the ordinary here,
but they mark him as possibly a non-professional seeking free
copies.
“Sure, let me see. For what do you want it?”
“Well, I’m from the Arcadia Pleasure Club. We’re going to give a
little entertainment next Wednesday and we want some songs.”
“I think I’ve got just the thing you want. Wait till I call the boy.
Harry! Bring me some professional copies of ballads.”
The youth is probably a representative of one of the many
Tammany pleasure organizations, the members of which are known
for their propensity to gather about east and west side corners at
night and sing. One or two famous songs are known to have secured
their start by the airing given them in this fashion on the street
corners of the great city.
Upon his heels treads a lady whose ruffled sedateness marks her
as one unfamiliar with this half-musical, half-theatrical atmosphere.
“I have a song I would like to have you try over, if you care to.”
The attending publisher hesitates before even extending a form
of reception.
“What sort of a song is it?”
“Well, I don’t exactly know. I guess you’d call it a sentimental
ballad. If you’d hear it I think you might——”
“We are so over-stocked with songs now, Madam, that I don’t
believe there’s much use in our hearing it. Could you come in next
Friday? We’ll have more leisure then and can give you more
attention.”
The lady looks the failure she has scored, but retreats, leaving
the ground clear for the chance arrival of the real author, the
individual whose position is attested by one hit or mayhap many. His
due is that deference which all publishers, if not the public, feel
called upon to render, even if at the time he may have no reigning
success.
Whence the Song

“Hello, Frank, how are you? What’s new?”

The author, cane in hand, may know of nothing in particular.
“Sit down. How are things with you, anyhow?”
“Oh, so-so.”
“That new song of yours will be out Friday. We have a rush order
on it.”
“Is that so?”
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