Essentials of Contemporary Management

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[Second Canadian Edition]

Gareth R. Jones
Texas A&M University

Jennifer M. George
Rice University

Graham Fane
Capilano College

Toronto Montréal Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan New Delhi Santiago Seoul Singapore Sydney Taipei

To Matthew and Nicholas, students of business, and Meghan, a student of the arts. G. F.

Contemporary Management Second Canadian Edition Copyright © 2005, 2002 by McGraw-Hill Ryerson Limited, a Subsidiary of The McGraw-Hill Companies. All rights reserved. Copyright © 2003, 2000, 1998 by The McGraw-Hill Companies. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in a data base or retrieval system, without the prior written permission of McGraw-Hill Ryerson Limited, or in the case of photocopying or other reprographic copying, a licence from The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright licence, visit or call toll free to 1-800-893-5777. ISBN: 0-07-092201-2 1 2 3 4 5 6 7 8 9 10 TCP 0 9 8 7 6 5 Care has been taken to trace ownership of copyright material contained in this text; however, the publisher will welcome any information that enables them to rectify any reference or credit for subsequent editions. Executive Sponsoring Editor: Lynn Fisher Sponsoring Editor: Kim Brewster Developmental Editors: Darren Hick; Andrew Simpson Senior Marketing Manager: Kelly Smyth Senior Supervising Editor: Margaret Henderson Copy Editor: Jim Zimmerman Senior Production Coordinator: Madeleine Harrington Composition: Dianna Little Cover Design: Dianna Little Printer: Transcontinental Printing Company Library and Archives Canada Cataloguing in Publication Jones, Gareth R. Contemporary management / Gareth R. Jones, Jennifer M. George, Graham Fane. — 2nd. Canadian ed. First Canadian ed. written by Gareth R. Jones ... [et al.]. Includes bibliographical references and index. ISBN 0-07-092201-2 1. Management—Textbooks. I. George, Jennifer M. II. Fane, Graham HD31.J628 2005 658 C2005-900631-5


Gareth R. Jones is a Professor of Management in the Lowry Mays College and Graduate School of Business at Texas A&M University. He received his B.A. in Economics/Psychology and his Ph.D. in Management from the University of Lancaster, U.K. He previously held teaching and research appointments at the University Warwick, Michigan State University, and the University of Illinois at Urbana–Champaign. He is a frequent visitor and speaker at universities in both the United Kingdom and the United States. He specializes in strategic management and organizational theory and is well known for his research that applies transaction cost analysis to explain many forms of strategic and organizational behaviour. He is currently interested in strategy process, competitive advantage, and information technology issues. He is also investigating the relationships between ethics, trust, and organizational culture and studying the role of affect in the strategic

decision-making process. He has published many articles in leading journals of the field and his recent work has appeared in the Academy of Management Review, Journal of International Business Studies, Human Relations. An article on the role of information technology on many aspects of organizational functioning was recently published in the Journal of Management. One of his articles won the Academy of Management Journal Best Paper Award, and he is one of the most prolific authors in the Academy of Management Review. He is or has served on the editorial boards of the Academy of Management Review, the Journal of Management, and Management Inquiry. Gareth Jones has taken his academic knowledge and used it to craft leading textbooks in management, and three other major areas in the management...
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