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Understanding Business 11th Edition Ebook PDF Version
Understanding Business 11th Edition Ebook PDF Version
WALKTHROUGH
Understanding Business has long been the MARKET LEADER. We’ve listened to
you and your students and that’s helped us offer you:
Technology that leads the way and is consistently being updated to keep up with
you and your students. Connect Business offers students a truly interactive and
adaptive study arena. Interactive Presentations, Interactive Applications, SmartBook,
and LearnSmart are designed to engage students and have been proven to increase
grades by a full letter.
Support that is always available to help you in planning your course, working with
technology, and meeting the needs of you and your students.
vii
RESULTS-DRIVEN TECHNOLOGY FOR STUDENTS
Across the country, instructors and students continue to raise an important question: How can introduction to business
courses further support students throughout the learning process to shape future business leaders? While there is no
one solution, we see the impact of new learning technologies and innovative study tools that not only fully engage
students in course material but also inform instructors of the students’ skill and comprehension levels.
Interactive learning tools, including those offered through McGraw-Hill Connect, are being implemented to increase
teaching effectiveness and learning efficiency in thousands of colleges and universities. By facilitating a stronger connec-
tion with the course and incorporating the latest technologies—such as McGraw-Hill LearnSmart, an adaptive learning
program—these tools enable students to succeed in their college careers, which will ultimately increase the percentage of
students completing their postsecondary degrees and create the business leaders of the future.
SmartBook Achieve
A revolution in reading Fueled by
LearnSmart, SmartBook Achieve is the
first and only adaptive reading experi-
ence available today. SmartBook per-
sonalizes content for each student in a
continuously adapting reading experi-
ence. Reading is no longer a passive
and linear experience, but an engaging
and dynamic one where students are
more likely to master and retain impor-
tant concepts, coming to class better
prepared.
viii
Leveraging a continuously adaptive learning path, the program adjusts to each stu-
dent individually as he or she progresses through the program, creating just-in-time learn-
ing experiences by presenting interactive content that is tailored to each student’s needs.
This model is proven to accelerate learning and strengthen memory recall. A convenient
time-management feature and turnkey reports for instructors also ensure student’s stay
on track.
Interactive Presentations
Aid for Visual Learners These visual pre-
sentations within Connect are designed to rein-
force learning by offering a visual presentation
of the learning objectives highlighted in every
chapter of the text. Interactive presentations are
engaging, online, professional presentations (fully
Section 508 compliant) covering the same core
concepts directly from the chapter, while offer-
ing additional examples and graphics. Interactive
Presentations teach students learning objectives in
a multimedia format, bringing the course and the
book to life. Interactive Presentations are a great
prep tool for students—when the students are bet-
ter prepared, they are more engaged and better
able to participate in class.
Interactive Applications
A higher level of learning These exercises
require students to APPLY what they have learned
in a real-world scenario. These online exercises
will help students assess their understanding of the
concepts.
ix
Video cases give students the opportunity to
watch case videos and apply chapter concepts
to a real-world business scenario as the scenario
unfolds.
Video Cases
Real-world assignments Industry-leading video support helps students understand
concepts and see how real companies and professionals implement business principles
in the workplace. The video cases highlight companies from a broad range of industries,
sizes, and geographic locations, giving students a perspective from a variety of businesses.
x
Media-Rich E-Book
Connect provides students with a cost-saving alternative to the traditional textbook.
A seamless integration of a media-rich e-book features the following:
• A web-optimized e-book, allowing for anytime, anywhere online access to the
textbook.
• Our iSee It! animated video explanations of the most often confused topics can be
accessed within this e-book.
• Highlighting and note-taking capabilities.
A
Getting to know Tony Hsieh
Test Bank, Instructor’s Manual, PowerPoints,
11
lthough online shopping day of interviews went, if our shuttle
sites are becoming the driver wasn’t treated well, then we won’t
dominant force in the hire that person.” The examination
Tony Hsieh
retail world, they often doesn’t end once the person lands the
according to the learning objectives. Management: ensures customers don’t have to sacri-
fice quality service for convenience.
When Tony Hsieh joined Zappos as
A long with creating open and acces-
sible work environments, Hsieh also tries
to break down as many barriers between
•
workplace
rs to wow
CEO, he wanted to change the corporate employees and management as possi-
• Empo wers staffe
work environment for the better. After sell- ble. Zappos executives are affectionately
Finding and Keeping the ing his first company to Microsoft for a referred to as “monkeys,” and the best customers
whopping $265 million, Hsieh didn’t want view from the company’s 10-story Vegas
a job in a gray, cubicle-filled office. “For high-rise is reserved for the call center www.zappos.com
Best Employees me, I didn’t want to be part of a company workers. In fact, Hsieh puts so much faith
where I dreaded going into the office,” in his staff that in 2014 he announced @zappos
Getting to Know Business Professionals said Hsieh. To set Zappos apart from
other online retailers, he wanted his ser-
vice representatives to wow customers
with their energy and expertise. To do that
Zappos would be eliminating most of its
traditional managers, corporate titles,
and hierarchy entirely. Instead, the com-
pany will be replacing its standard
Hsieh needed upbeat employees who chain of command with a “hol-
Every chapter in the text opens with the pro- Learning Objectives
were motivated by the love of their work.
He gave his call center staffers remark-
able freedom, allowing them to talk to
customers for hours at a time or send
acracy.” This new company
structure splits employees into
overlapping but mostly self-
ruling “circles” that allow
relates closely to the material in the chapter. LO 11-2 Illustrate the effects of legislation on human resource
management.
LO 11-3 Summarize the five steps in human resource planning.
order to succeed at this job, Zappos’s
service reps must be creative, energetic,
generous, and understanding. But this
commitment to excellence doesn’t end
radical system works, Tony
Hsieh’s commitment to an
offbeat but efficient workplace
has already grown Zappos into
with the company’s spirited call center a $2 billion company. If anybody
These business professionals work for a vari- LO 11-4 Describe methods that companies use to recruit new employees,
and explain some of the issues that make recruitment challenging.
LO 11-5 Outline the six steps in selecting employees.
employees. When candidates for depart-
ments like marketing or management
reach the interview stage, Hsieh starts
testing them before they even set foot in
can pull off such an unorthodox
office structure, it’s Hsieh.
In this chapter, you’ll learn
how businesses that succeed like
ety of businesses from small businesses and LO 11-6 Illustrate employee training and development methods. the company’s Las Vegas headquarters. Zappos recruit, manage, and make
“A lot of our job candidates are from out the most of their employees.
LO 11-7 Trace the six steps in appraising employee performance. of town, and we’ll pick them up from the
airport in a Zappos shuttle, give them a Sources: Jena McGregor, “Zappos Says Goodbye to
LO 11-8 Summarize the objectives of employee compensation programs, Bosses,” The Washington Post, January 3, 2014; Edward
tour, and then they’ll spend the rest of Lewine, “Tony Hsieh’s Office: Welcome to the Rain
and evaluate pay systems and fringe benefits.
nonprofit organizations to large corporations. LO 11-9 Demonstrate how managers use scheduling plans to adapt to
workers’ needs.
the day interviewing,” said Hsieh. “At the
end of the day of interviews, the
recruiter will circle back to the shuttle
driver and ask how he or she was
Forest,” The New York Times, December 28, 2013; Max
Nisen, “Tony Hsieh’s Brilliant Strategy for Hiring Kind
People,” Business Insider, November 22, 2013; Kim Bhasin,
“Tony Hsieh: Here’s Why I Don’t Want My Employees to
Work From Home,” Business Insider, March 6, 2013; and
Adam Bryant, “On a Scale of 1 to 10, How Weird Are You?”
LO 11-10 Describe how employees can move through a company: treated. It doesn’t matter how well the The New York Times, January 9, 2010.
These career profiles are an engaging way to promotion, reassignment, termination, and retirement.
variety of business career paths. nic23165_ch11_298-331.indd 298 11/4/14 10:44 AM nic23165_ch11_298-331.indd 299 11/4/14 10:44 AM
Name That Company Every text chapter opens with a Name That
Company challenge. The answer for the challenge can be found somewhere name that company
in the chapter. This Swiss-based company has many foreign subsidiaries including Jenny
Craig (weight management), Ralston Purina, Chef America (maker of Hot
Pockets), and Dreyer’s Ice Cream in the United States, as well as Perrier in
France. The company employs over 328,000 people and has operations in
almost every country in the world. Name that company. (Find the answer in
the chapter.)
www.rickshawbags.com
seeking sustainability
y
Sustainability’s in the Bag
When it comes to sustainable Rickshaw employees and
to help retain
products, making sure an item is executives
ex abide by the compa- Use LearnSmart ned. Access test prep
environmentally sound is just
the first step. After all, the word
ny’s
ny “three Fs” of sustainable
design:
de form, function and foot-
what you have lear nect course
“sustainability” implies that print.
pr Not only must a product your instructor's Con mart, or go to • What are the advanta
advantages
ges to a firm of using licensing as a method of
something will last for a long make
m as small a carbon footprint to check out LearnSe.com for help. entry in global markets? What are the disadvantages?
time. A shoddy product that as possible, it must also serve a learnsmartadvantag • What services are usually provided by an export-trading company?
needs to be replaced often long-term
lo practical function and
takes a hefty toll on resources, look
lo great doing it. That’s why • What is the key difference between a joint venture and a strategic
which can cancel out the envi- Rickshaw’s
Ri messenger bags are alliance?
ronmental benefits of even the designed
de in a way that ensures
• What makes a company a multinational corporation?
greenest production methods. every
ev piece of fabric cut by the
That’s why Rickshaw company makes it into the bag.
Bagworks in San Francisco The company’s dedication to
makes sustainable accessories sustainability is even incorpo-
designed to last for the long
term. For instance, at first the com-
pany began producing bags using upholstery mill to create its own
rated in its name, which means
“human powered vehicle” in
Japanese. Do you think more com-
Test Prep Questions help students understand and
expensive Italian wool herring-
bone tweed. Although the fabric
fabric, Rickshaw Performance
Tweed. Made from recycled plas-
panies should be as dedicated to
sustainability as Rickshaw?
retain the material in the chapters. These questions stop
was beautiful and environmentally tic bottles, this synthetic fabric
friendly, the prototypes wore out
in a manner of weeks. So
ended up being stronger and
more eco-friendly while still look-
Sources: Mark Dwight, “How to Build a
Sustainable Business,” Inc., November 2013; and
them at important points in the chapter to assess what
nic23165_ch03_060-091.indd 72 9/26/14 2:32 PM
http://blog.rickshawbags.com/the-rickshaw-story/,
Rickshaw teamed up with an ing gorgeous as a handbag. accessed February 2014.
they’ve learned before they continue reading and help them
prep for exams.
Seeking Sustainability boxes highlight corporate
responsibility and help students understand the various
ways business activities affect the environment.
nic23165_ch03_060-091.indd 62 9/26/14 2:31 PM
xi
www.yaofamilywines.com
www.medicaltourism.com
xii
Connect’s Instructor Library
Connect’s Instructor Library serves as a one-stop, secure site for essential course materi-
als, allowing you to save prep time before class. The instructor site resources found in the
library include:
• Instructor’s Manual
• PowerPoint Presentations
• Test Bank/EZ Test
• Monthly Bonus Activities
• Videos
• Video Guide
• Connect Instructor’s Manual
Instructor’s Manual: The authors have carefully reviewed all resources provided in
the Instructor’s Manual to ensure cohesion with the text. It includes everything an instruc-
tor needs to prepare a lecture, including lecture outlines, discussion questions, and teaching
notes. More than 900 PowerPoint slides offer material from the text, as well as expanded
coverage to supplement discussion.
PowerPoint Presentations: More than 900 PowerPoint slides offer material from the
text, as well as expanded coverage to supplement discussion.
Test Bank and EZ Test Online: The Test Bank and Computerized Test Bank offer
over 8,000 multiple-choice, true/false, short answer, essay, and application questions.
ISBN: 0077474376
Videos: Chapter-specific videos are provided to complement each chapter of the text.
Eleven of the 20 videos have been updated to include interesting companies that students
will identify with such as SXSW, Sonic, and Whole Foods.
Video Guide: The Video Guide offers additional detailed teaching notes to accompany
the chapter videos, and provides essay-style and multiple-choice questions.
xiii
PLATINUM EXPERIENCE TEACHING OPTIONS
AND SOLUTIONS
Blackboard Partnership
McGraw-Hill Education and Blackboard have teamed up to simplify your life. Now
you and your students can access Connect and Create right from within your Black-
board course—all with one single sign-on. The grade books are seamless, so when a
student completes an integrated Connect assignment, the grade for that assignment
automatically (and instantly) feeds your Blackboard grade center. Learn more at
www.domorenow.com.
Create
Instructors can now tailor their teaching resources to match the way they teach! With
McGraw-Hill Create, www.mcgrawhillcreate.com, instructors can easily rearrange
chapters, combine material from other content sources, and quickly
upload and integrate their own content, like course syllabi or teaching
notes. Find the right content in Create by searching through thousands of
leading McGraw-Hill textbooks. Arrange the material to fit your teach-
ing style. Order a Create book and receive a complimentary print review copy in three to
five business days or a complimentary electronic review copy via e-mail within one hour.
Go to www.mcgrawhillcreate.com today and register.
Tegrity Campus
Tegrity makes class time available 24/7 by automatically capturing every lecture in a
searchable format for students to review when they study and complete assignments.
With a simple one-click start-and-stop process, you capture all computer screens and
corresponding audio. Students can replay any part of any class with easy-to-use
browser-based viewing on a PC or Mac. Educators know that the more students
® can see, hear, and experience class resources, the better they learn. In fact, studies
prove it. With patented Tegrity “search anything” technology, students instantly
recall key class moments for replay online or on iPods and mobile devices. Instructors
can help turn all their students’ study time into learning moments immediately supported
by their lecture. To learn more about Tegrity, watch a two-minute Flash demo at http://
tegritycampus.mhhe.com.
McGraw-Hill Campus
McGraw-Hill Campus is a new one-stop teaching and learning experience available to
users of any learning management system. This institutional service allows faculty and
students to enjoy single sign-on (SSO) access to all McGraw-Hill Higher Education
materials, including the award-winning McGraw-Hill Connect platform, from
directly within the institution’s website. With McGraw-Hill Campus, faculty
receive instant access to teaching materials (e.g., eTextbooks, test banks, Power
Point slides, animations, learning objects, etc.), allowing them to browse,
search, and use any instructor ancillary content in our vast library at no additional cost to
instructor or students.
xiv
COURSE DESIGN AND DELIVERY
In addition, students enjoy SSO access to a variety of free content (e.g., quizzes, flash
cards, narrated presentations, etc.) and subscription-based products (e.g., McGraw-Hill
Connect). With McGraw-Hill Campus enabled, faculty and students will never need
to create another account to access McGraw-Hill products and services. Learn more at
www.mhcampus.com.
AACSB Tagging
McGraw-Hill Education is a proud corporate member of AACSB International. Under-
standing the importance and value of AACSB accreditation, Understanding Business
recognizes the curricula guidelines detailed in the AACSB standards for business accred-
itation by connecting selected questions in the text and the test bank to the six general
knowledge and skill guidelines in the AACSB standards. The statements contained in
Understanding Business are provided only as a guide for the users of this textbook. The
AACSB leaves content coverage and assessment within the purview of individual schools,
the mission of the school, and the faculty. While the Understanding Business teaching
package makes no claim of any specific AACSB qualification or evaluation, we have
within Understanding Business labeled selected questions according to the six general
knowledge and skills areas.
xv
ACKNOWLEDGMENTS
Our Senior Brand Manager, Anke Weekes, led the talented team at McGraw-Hill Educa-
tion. We appreciate her dedication to the success of the project and her responsiveness to
the demands of the market. Kelly Delso served as our product developer and kept everyone
on task and on schedule. Molly and Michael McHugh contributed the new boxes and pro-
files. Srdjan Savanovic created the new fresh, open interior design and extraordinary cover.
Carrie Burger and Jen Blankenship carried out the extensive research for photos that was
necessary to effectively reflect the concepts presented in the text. Lead project manager,
Christine Vaughan, did a splendid job of keeping the production of the text on schedule.
Danielle Clement expertly supervised Connect production.
Many dedicated educators made extraordinary contributions to the quality and utility
of this text and package. For this edition, Molly McHugh did an exceptional job in prepar-
ing the Test Bank and creating the quizzes for Connect. Molly also did a superb job of
creating the PowerPoint slides and a useful and current Instructor’s Resource Manual. We
also recognize the efforts of those who contributed to the creation of Connect materials,
and to our LearnSmart “team” at Monroe Community College; Judy Bulin, John Striebich,
and Donna Haeger who tirelessly worked to review and perfect LearnSmart content. Thank
you to Chris Cole, Dayna Brown, Dan Mack, and the crew of Cole Creative Productions
for the fabulous new videos they produced. Thank you to the Digital Faculty Consultants
who have helped train and support so many instructors in the Introduction to Business
course, as well as assist them in successfully implementing Connect into their courses:
Chris Finnin, Drexel University; Todd Korol, Monroe Community College; John Striebich,
Monroe Community College; and Marie Lapidus, Oakton Community College.
Our outstanding marketing manager, Michael Gedatus, was up to the challenge of
once again guiding the text to market leadership. With the assistance of the market’s fin-
est sales professionals, he led the text to record highs. We appreciate his commitment and
the renowned product knowledge, service, and dedication of the McGraw-Hill Education
sales reps. We want to thank the many instructors who contributed to the development of
Understanding Business.
REVIEWERS
We would like to thank the following instructors for sharing their opinions with us in an
effort to improve this and previous editions:
Ashraf Almurdaah, Los Angeles Amy Beattie, Champlain College Jerri Buiting, Baker College–Flint
City College Charles Beem, Bucks County Bonnie Chavez, Santa Barbara
Lydia Anderson, Fresno City Community College City College
College Robert Bennett, Delaware County Savannah Clay, Central Piedmont
Chi Anyasi-Archibong, North Community College Community College
Carolina A&T Michael Bento, Owens Community Paul Coakley, Community College
Maria Aria, Camden County College of Baltimore County
College George H. Bernard, Seminole Patrick Conroy, Delgado
Michael Aubry, Cuyamaca College State College of Florida Community College
Frank Barber, Cuyahoga Commu- Marilyn Besich, Montana State James Darling, Central New
nity College University–Great Falls Mexico Community College
Richard Bartlett, Columbus State Dennis Brode, Sinclair Community Joseph Dutka, Ivy Tech
Community College College Community College of Indiana
Lorraine P. Bassette, Prince Kathy Broneck, Pima Community MaryBeth Furst, Howard
George’s Community College College Community College
Jim Beard, University of Harvey Bronstein, Oakland Com- Wayne Gawlik, Joliet Junior
Arkansas–Fort Smith munity College College
xvii
xviii ACKNOWLEDGMENTS
Ross Gittell, University of New Janice Karlen, La Guardia Vincent Quan, Fashion Institute of
Hampshire Community College Technology
Constance Golden, Lakeland James W. Marco, Wake Technical David Robinson, University of
Community College Community College California–Berkeley
Doug Greiner, University of Theresa Mastrianni, Kingsborough Rieann Spence-Gale, Nova
Toledo–Scott Park Community College Community College
John Guess, Delgado Community Michelle Meyer, Joliet Junior Kurt Stanberry, University of
College College Houston
Lisa E. Hadley, Southwest Catherine Milburn, University of Marguerite Teubner, Nassau
Tennessee Community College Colorado–Denver Community College
Nancy Hernandez, Howard Mihai Nica, University of Central Rod Thirion, Pikes Peak
College Oklahoma Community College
Maryanne Holcomb, Oakland David Oliver, Edison Community William J. Wardrope, University of
Community College College Central Oklahoma
Russell E. Holmes, Des Moines Dyan Pease, Sacramento City David Washington, North Carolina
Area Community College College State University
We would like to thank the following instructors and students who generously provided the input and advice that contrib-
uted to the development of this text.
Nikolas Adamou, Borough of Ruby Barker, Tarleton State Mary Jo Boehms, Jackson State
Manhattan Community College University Community College
Cathy Adamson, Southern Union Rosalia (Lia) Barone, Norwalk James Borden, Villanova
State Community College Community College University
Gary Amundson, Montana State Barbara Barrett, St. Louis Commu- Michael Bravo, Bentley College
University–Billings nity College–Meramec Dennis Brode, Sinclair Community
Kenneth Anderson, Borough of Barry Barrett, University of College
Manhattan Community College Wisconsin–Milwaukee Harvey Bronstein, Oakland Com-
Kenneth Anderson, Mott Lorraine Bassette, Prince George’s munity College–Farmington
Community College Community College Hills
Lydia Anderson, Fresno City Robb Bay, College of Southern Deborah Brown, North Carolina
College Nevada–West Charle State University–Raleigh
Narita Anderson, University of Charles Beavin, Miami Dade Aaron A. Buchko, Bradley
Central Oklahoma College North University
Roanne Angiello, Bergen Charles Beem, Bucks County Laura Bulas, Central Community
Community College Community College College–Hastings
Chi Anyansi-Archibong, North Cathleen Behan, Northern Virginia Judy Bulin, Monroe Community
Carolina A&T University Community College College
Michael Atchison, University of Lori Bennett, Moorpark College Barry Bunn, Valencia Community
Virginia–Charlottesville Ellen Benowitz, Mercer Commu- College–West Campus
Andrea Bailey, Moraine Valley nity College Bill Burton, Indiana Wesleyan
Community College Patricia Bernson, County College University
Sandra Bailey, Ivy Tech Commu- of Morris Paul Callahan, Cincinnati State
nity College of Indiana William Bettencourt, Edmonds Technical and Community
Scott Bailey, Troy University Community College College
Wayne Ballantine, Prairie View Robert Blanchard, Salem State William Candley, Lemoyne Owen
A&M University College College
ACKNOWLEDGMENTS xix
Nancy Carr, Community College of George Dollar, St. Petersburg Constance Golden, Lakeland
Philadelphia College Community College
Ron Cereola, James Madison Glenn Doolittle, Santa Ana Toby Grodner, Union County
University College College
Bonnie Chavez, Santa Barbara Ron Dougherty, Ivy Tech Clark Hallpike, Elgin Community
City College Community College of Indiana College
Susan Cisco, Oakton Community Michael Drafke, College of Geri Harper, Western Illinois
College DuPage University
Margaret (Meg) Clark, Cincinnati Karen Eboch, Bowling Green State Frank Hatstat, Bellevue
State Technical and Community University Community College
College Brenda Eichelberger, Portland Spedden Hause, University of
David Clifton, Ivy Tech Community State University
Maryland–University College
College of Indiana Kelvin Elston, Nashville State Tech
Karen Hawkins, Miami-Dade
C. Cloud, Phoenix College Community College
College–Kendall
Doug Cobbs, JS Reynolds Com- Robert Ettl, Stony Brook University
Travis Hayes, Chattanooga State
munity College Nancy Evans, Heartland Technical Community College
Brooks Colin, University of New Community College
Orleans Jack Heinsius, Modesto Junior
Michael Ewens, Ventura College College
Debbie Collins, Anne Arundel Hyacinth Ezeka, Coppin State
Community College Charlane Held, Onondaga
University
Community College
Andrew Cook, Limestone College Bob Farris, Mt. San Antonio
James Hess, Ivy Tech Community
Bob Cox, Salt Lake Community College
College of Indiana
College Karen Faulkner, Long Beach City
Susan Cremins, Westchester Com- College Steve Hester, Southwest
munity College Tennessee Community
Gil Feiertag, Columbus State College–Macon Campus
Julie Cross, Chippewa Valley Tech Community College
College William Hill, Mississippi State
Joseph Flack, Washtenaw
University
Geoffrey Crosslin, Kalamazoo Community College
Valley Community College Nathan Himelstein, Essex County
Lucinda Fleming, Orange County
College
Douglas Crowe, Bradley University Community College
John David, Stark State College of Jackie Flom, University of Toledo Paula Hladik, Waubonsee
Technology Community College
Andrea Foster, John Tyler
Peter Dawson, Collin County Community College David Ho, Metropolitan
Community College Community College
Michael Foster, Bentley College
Joseph Defilippe, Suffolk County Douglas Hobbs, Sussex County
Leatrice Freer, Pitt Community
Community College–Brentwood Community College
College
Tim DeGroot, Midwestern State Maryanne Holcomb, Antelope
Alan Friedenthal, Kingsborough
University Community College Valley College
Len Denault, Bentley College Charles Gaiser, Brunswick Mary Carole Hollingsworth,
Frances Depaul, Westmoreland Community College Georgia Perimeter College
County Community College Ashley Geisewite, Southwest Russell Holmes, Des Moines Area
Donna Devault, Fayetteville Tech Tennessee Community College Community College
Community College Katie Ghahramani, Johnson Scott Homan, Purdue
Sharon Dexter, Southeast County Community College University–West Lafayette
Community College–Beatrice Debora Gilliard, Metropolitan State Stacy Horner, Southwestern
John Dilyard, St. Francis College College–Denver Michigan College
Barbara Dinardo, Owens James Glover, Community College Dennis Hudson, University of
Community College of Baltimore County–Essex Tulsa
xx ACKNOWLEDGMENTS
Jo Ann Hunter, Community Robert Lupton, Central Paul Okello, Tarrant County
College Allegheny County in Washington University College
Pittsburgh Megan Luttenton, Grand Valley Faviana Olivier, Bentley College
Kimberly Hurns, Washtenaw State University John Olivo, Bloomsburg University
Community College Elaine Madden, Anne Arundel of Pennsylvania
Victor Isbell, University of Community College Teresa O’Neill, International
Nevada–Las Vegas Lawrence Maes, Davenport Institute of the Americas
Deloris James, University of University Cathy Onion, Western Illinois
Maryland–University College Niki Maglaris, Northwestern University
Pam Janson, Stark State College College Susan Ontko, Schoolcraft College
of Technology James Maniki, Northwestern College Glenda Orosco, Oklahoma
William Jedlicka, Harper College Martin Markowitz, College of State University Institute of
Carol Johnson, University of Denver Charleston Technology
Gwendolyn Jones, University of Fred Mayerson, Kingsborough Christopher O’Suanah, J. S.
Akron Community College Reynolds Community College
Kenneth Jones, Ivy Tech Commu- Stacy McCaskill, Rock Valley Daniel Pacheco, Kansas City
nity College of Indiana College Kansas Community College
Marilyn Jones, Friends University Vershun L. McClain, Jackson State Esther Page-Wood, Western
University Michigan University
Michael Jones, Delgado Commu-
nity College Gina McConoughey, Illinois Lauren Paisley, Genesee
Central College Community College
Dmitriy Kalyagin, Chabot College
Patricia McDaniel, Central John Pappalardo, Keene State
Jack Kant, San Juan College
Piedmont Community College College
Jimmy Kelsey, Seattle Central
Pam McElligott, St. Louis Commu- Ron Pardee, Riverside Community
Community College
nity College–Meramec College
Robert Kemp, University of
Tom McFarland, Mt. San Antonio Jack Partlow, Northern Virginia
Virginia–Charlottesville
College Community College
David Kendall, Fashion Institute of
Bill McPherson, Indiana University Jeff Pepper, Chippewa Valley Tech
Technology
of Pennsylvania College
Kristine Kinard, Shelton State
Ginger Moore, York Technical Sheila Petcavage, Cuyahoga
Community College
College Community College
Sandra King, Minnesota State Western–Parma
Sandy Moore, Ivy Tech Community
University–Mankato College of Indiana Roy Pipitone, Erie Community
John Kurnik, Saint Petersburg Jennifer Morton, Ivy Tech College
College Community College of Indiana Lana Powell, Valencia Community
Jeff LaVake, University of Peter Moutsatson, Central College–West Campus
Wisconsin–Oshkosh Michigan University Dan Powroznik, Chesapeake
Robert Lewis, Davenport University Rachna Nagi-Condos, American College
Byron Lilly, DeAnza College River College Litsa Press, College of Lake
Beverly Loach, Central Piedmont Darrell Neron, Pierce College County
Community College Mihia Nica, University of Central Sally Proffitt, Tarrant County
Boone Londrigan, Mott Commu- Oklahoma College–Northeast
nity College Charles Nichols, Sullivan Michael Quinn, James Madison
Ladonna Love, Fashion Institute of University University
Technology Frank Novakowski, Davenport Anthony Racka, Oakland Commu-
Ivan Lowe, York Technical College University nity College
Yvonne Lucas, Southwestern Mark Nygren, Brigham Young Larry Ramos, Miami-Dade Commu-
College University–Idaho nity College
ACKNOWLEDGMENTS xxi
Greg Rapp, Portland Community James Scott, Central Michigan Evelyn Thrasher, University of
College–Sylvania University Massachusetts–Dartmouth
Robert Reese, Illinois Valley Com- Janet Seggern, Lehigh Carbon Jon Tomlinson, University of
munity College Community College Northwestern Ohio
David Reiman, Monroe County Sashi Sekhar, Purdue Bob Trewartha, Minnesota School
Community College University–Calumet-Hammond of Business
Gloria Rembert, Mitchell Commu- Pat Setlik, Harper College Bob Urell, Irvine Valley College
nity College Swannee Sexton, University of
Dan Vetter, Central Michigan
Levi Richard, Citrus College Tennessee–Knoxville
University
Clinton Richards, University of Phyllis Shafer, Brookdale Commu-
Nevada–Las Vegas nity College Andrea Vidrine, Baton Rouge
Community College
Patricia Richards, Westchester Richard Shortridge, Glendale
Community College Community College Daniel Viveiros, Johnson & Wales
University
Susan Roach, Georgia Southern Louise Stephens, Volunteer State
University Community College Joann Warren, Community College
Sandra Robertson, Thomas Desiree Stephens, Norwalk Com- of Rhode Island–Warwick
Nelson Community College munity College R. Patrick Wehner, Everest
Catherine Roche, Rockland Clifford Stalter, Chattanooga State University
Community College Technical Community College Sally Wells, Columbia College
Tim Rogers, Ozark Technical Kurt Stanberry, University of Mildred Wilson, Georgia Southern
College Houston–Downtown University
Sam Rohr, University of Martin St. John, Westmoreland Karen Wisniewski, County College
Northwestern Ohio County Community College
of Morris
Pamela Rouse, Butler University John Striebich, Monroe Commu-
Greg Witkowski, Northwestern
Carol Rowey, Community College nity College
College
of Rhode Island David Stringer, DeAnza College
Colette Wolfson, Ivy Tech
Jeri Rubin, University of Ron Surmacz, Duquesne
Community College of Indiana
Alaska–Anchorage University
Deborah Yancey, Virginia Western
Storm Russo, Valencia Community William Syvertsen, Fresno City
College Community College
College
Mark Ryan, Hawkeye Community Scott Taylor, Moberly Area Com- Mark Zarycki, Hillsborough
College munity College Community College
Richard Sarkisian, Camden County Jim Thomas, Indiana University Lisa Zingaro, Oakton Community
College Northwest College
Andy Saucedo, Dona Ana Deborah Thompson, Bentley Mark Zorn, Butler County
Community College–Las Cruces College Community College
This edition continues to be the market’s gold standard due to the involvement of these committed instructors and stu-
dents. We thank them all for their help, support, and friendship.
PART 1
Business Trends: Cultivating a Business in Diverse, Global
Environments 2
1 Taking Risks and Making Profits within the Dynamic Business Environment 2
2 Understanding Economics and How It Affects Business 28
3 Doing Business in Global Markets 60
4 Demanding Ethical and Socially Responsible Behavior 92
PART 2
Business Ownership: Starting a Small Business 118
5 How to Form a Business 118
6 Entrepreneurship and Starting a Small Business 150
PART 3
Business Management: Empowering Employees to Satisfy
Customers 184
7 Management and Leadership 184
8 Structuring Organizations for Today’s Challenges 210
9 Production and Operations Management 240
PART 4
Management of Human Resources: Motivating Employees to Produce
Quality Goods and Services 268
10 Motivating Employees 268
11 Human Resource Management: Finding and Keeping the Best Employees 298
12 Dealing with Union and Employee–Management Issues 332
PART 5
Marketing: Developing and Implementing Customer-Oriented
Marketing Plans 360
13 Marketing: Helping Buyers Buy 360
14 Developing and Pricing Goods and Services 388
15 Distributing Products 416
16 Using Effective Promotions 446
PART 6
Managing Financial Resources 472
17 Understanding Accounting and Financial Information 472
18 Financial Management 502
19 Using Securities Markets for Financing and Investing Opportunities 530
20 Money, Financial Institutions, and the Federal Reserve 564
Bonus Chapters
Bonus Chapter A: Working within the Legal Environment A
Bonus Chapter B: Using Technology to Manage Information B
Bonus Chapter C: Managing Risk C
Bonus Chapter D: Managing Personal Finances D
Epilogue E
xxii
Prologue: Getting Ready for This Course and Your Progress in Service Industries 20
Career P-1 Your Future in Business 22
Top 10 Reasons to Read This Introduction P-1 Summary 22
Learning the Skills You Need to Succeed Today Key Terms 24
and Tomorrow P-2 Critical Thinking 24
Using This Course to Prepare for Your Career P-3
Developing Workplace Skills 25
CONTENTS
Assessing Your Skills and Personality P-4
Taking It to the Net 25
Using Professional Business Strategies Right Now P-4
Learning to Behave Like a Professional P-5 Video Case: Thomas Lennon 26
Doing Your Best in College P-7 Notes 27
Study Hints P-7 Photo Credits 27
Test-Taking Hints P-9
Time Management Hints P-10
CHAPTER 2
Making the Most of the Resources for This
Course P-11 Understanding Economics and How It Affects
Getting the Most from This Text P-12 Business 28
Getting to Know: Matt Flannery, Co-Founder and
PART 1 CEO of Kiva.org 29
How Economic Conditions Affect Businesses 30
Business Trends: Cultivating a Business in What Is Economics? 30
Diverse, Global Environments 2 The Secret to Creating a Wealthy Economy 32
Adam Smith and the Creation of Wealth 32
How Businesses Benefit the Community 33
CHAPTER 1 Making Ethical Decisions: How Corruption Harms
Taking Risks and Making Profits within the the Economy 34
Dynamic Business Environment 2 Understanding Free-Market Capitalism 34
The Foundations of Capitalism 35
Getting to Know: Sammy Hagar, Entrepreneur and
Rock Star 3 How Free Markets Work 36
Entrepreneurship and Wealth Building 4 How Prices Are Determined 37
Revenues, Profits, and Losses 4 The Economic Concept of Supply 37
Matching Risk with Profit 5 The Economic Concept of Demand 37
Standard of Living and Quality of Life 5 The Equilibrium Point, or Market Price 37
Responding to the Various Business Stakeholders 6 Competition within Free Markets 38
Using Business Principles in Nonprofit Spotlight on Small Business: Bugs Bug Orange
Organizations 7
Farmers and Drive Prices Up 39
Entrepreneurship versus Working for Others 8 Benefits and Limitations of Free Markets 40
Opportunities for Entrepreneurs 8 Understanding Socialism 41
Spotlight on Small Business: How a Food Truck The Benefits of Socialism 41
Helped Rebuild a Storm-Struck Community 9 The Negative Consequences of Socialism 41
The Importance of Entrepreneurs to the Creation of Understanding Communism 42
Wealth 9 The Trend Toward Mixed Economies 42
The Business Environment 11 Reaching Beyond Our Borders: Economic
The Economic and Legal Environment 11 Expansion in Africa 44
Making Ethical Decisions: Ethics Begins with You 14 Understanding the U.S. Economic System 44
Key Economic Indicators 44
The Technological Environment 14
Productivity in the United States 48
Reaching Beyond Our Borders: Connecting
Companies with Global Freelancers 15 Productivity in the Service Sector 48
The Competitive Environment 16 The Business Cycle 49
The Social Environment 17 Stabilizing the Economy through Fiscal Policy 49
The Global Environment 18 Fiscal Policy in Action during an Economic Crisis 51
Adapting to Change: Gourmet Airport Eateries Using Monetary Policy to Keep the Economy
Take Flight 19 Growing 51
The Evolution of U.S. Business 20 Summary 52
Progress in the Agricultural and Manufacturing Key Terms 54
Industries 20 Critical Thinking 54
xxiii
xxiv CONTENTS
PART 4
Management of Human Resources: CHAPTER 11
Motivating Employees to Produce Quality Human Resource Management: Finding and
Goods and Services 268 Keeping the Best Employees 298
Getting to Know: Tony Hsieh, CEO of
Zappos 299
CHAPTER 10 Working with People Is Just the Beginning 300
Motivating Employees 268 Developing the Ultimate Resource 300
The Human Resource Challenge 301
Getting to Know: David Novak, CEO of Yum! Laws Affecting Human Resource
Brands 269 Management 302
The Value of Motivation 270 Laws Protecting Employees with Disabilities and
Frederick Taylor: The Father of Scientific Older Employees 304
Management 271
Effects of Legislation 305
Elton Mayo and the Hawthorne Studies 272 Determining a Firm’s Human Resource
Motivation and Maslow’s Hierarchy Needs 305
of Needs 273 Recruiting Employees from a Diverse
Herzberg’s Motivating Factors 274 Population 307
McGregor’s Theory X and Theory Y 276 Spotlight on Small Business: Competing for the
Theory X 276 Cream of the Crop 309
Theory Y 277 Selecting Employees Who Will Be Productive 309
Ouchi’s Theory Z 278 Adapting to Change: Keeping the Right Face on
Goal-Setting Theory and Management by Facebook 311
Objectives 280 Hiring Contingent Workers 311
Meeting Employee Expectations: Expectancy Training and Developing Employees for Optimum
Theory 280 Performance 312
xxviii CONTENTS
Reaching Beyond Our Borders: Two Is Better than The New-Product Development Process 402
One 374 Generating New-Product Ideas 402
Competitive Factors 374 Product Screening 402
Economic Factors 374 Product Analysis 402
Two Different Markets: Consumer and Business-to- Product Development and Testing 402
Business (B2B) 375
Commercialization 403
The Consumer Market 375
Adapting to Change: Making the
Segmenting the Consumer Market 376 Right Cut 404
Reaching Smaller Market Segments 377 The Product Life Cycle 404
Building Marketing Relationships 378 Example of the Product Life Cycle 405
The Consumer Decision-Making Using the Product Life Cycle 405
Process 378
Competitive Pricing 407
Adapting to Change: Turning Negatives to Pricing Objectives 407
Positive 379
Cost-Based Pricing 408
The Business-to-Business Market 380
Your Prospects in Marketing 380 Demand-Based Pricing 408
Summary 381 Competition-Based Pricing 408
Key Terms 383 Break-Even Analysis 408
Other Pricing Strategies 409
Critical Thinking 383
How Market Forces Affect Pricing 409
Developing Workplace Skills 384
Nonprice Competition 410
Taking It to the Net 384 Summary 410
Video Case: Using the 4 Ps at Energizer 385 Key Terms 412
Notes 385 Critical Thinking 413
Photo Credits 386 Developing Workplace Skills 413
Taking It to the Net 414
Video Case: Dream Dinners Food-to-Go 414
CHAPTER 14
Notes 415
Developing and Pricing Goods and Photo Credits 415
Services 388
Getting to Know: Kathy Ireland, CEO of Kathy
Ireland Worldwide 389 CHAPTER 15
Product Development and the Total Product
Offer 390 Distributing Products 416
Adapting to Change: Bellying Up to Getting to Know: Reed Hastings, CEO of
Social Media 391 Netflix 417
Distributed Product Development 392 The Emergence of Marketing Intermediaries 418
Product Lines and the Product Mix 393 Seeking Sustainability: Answer May Be Blowing in
the Wind 419
Spotlight on Small Business: Sealing the
Deal 394 Why Marketing Needs Intermediaries 419
Product Differentiation 394 How Intermediaries Create Exchange
Marketing Different Classes of Consumer Goods and Efficiency 420
Services 395 The Value versus the Cost of Intermediaries 421
Marketing Industrial Goods and Services 396 The Utilities Created by Intermediaries 423
Packaging Changes the Product 397 Form Utility 423
The Growing Importance of Packaging 398 Time Utility 423
Branding and Brand Equity 398 Place Utility 423
Brand Categories 399 Possession Utility 424
Reaching Beyond Our Borders: Playing the Name Information Utility 424
Game 400 Service Utility 424
Generating Brand Equity and Loyalty 400 Wholesale Intermediaries 425
Creating Brand Associations 401 Merchant Wholesalers 425
Brand Management 401 Agents and Brokers 426
xxx CONTENTS
Different Classes of Bonds 540 The History of Banking and the Need for the
Special Bond Features 541 Fed 574
How Investors Buy Securities 542 Banking and the Great Depression 575
Making Ethical Decisions: Money Going Up in The U.S. Banking System 575
Smoke 543 Commercial Banks 576
Investing through Online Brokers 543 Services Provided by Commercial Banks 576
Choosing the Right Investment Strategy 543 Services to Borrowers 576
Reaching Beyond Our Borders: Global Stocks: Love Making Ethical Decisions: Would You Tell the
Them or Leave Them 544 Teller? 577
Reducing Risk by Diversifying Investments 544 Savings and Loan Associations (S&Ls) 577
Investing in Stocks 545 Credit Unions 577
Stock Splits 546 Other Financial Institutions (Nonbanks) 578
Buying Stock on Margin 546 Spotlight on Small Business: Taking a Bite Out
Understanding Stock Quotations 547 of the Sharks 579
Investing in Bonds 548 The Banking Crisis and How the Government
Investing in High-Risk (Junk) Bonds 548 Protects Your Money 580
Understanding Bond Quotations 548 Protecting Your Funds 581
Investing in Mutual Funds and Exchange-Traded The Federal Deposit Insurance Corporation (FDIC) 581
Funds 549 The Savings Association Insurance Fund (SAIF) 581
Understanding Mutual Fund Quotations 550 The National Credit Union Administration
Understanding Stock Market Indicators 551 (NCUA) 581
Riding the Market’s Roller Coaster 553 Using Technology to Make Banking More
Efficient 581
Investing Challenges in the 21st-Century
Market 555 Online Banking 583
Summary 555 International Banking and Banking Services 583
Key Terms 558 Leaders in International Banking 583
The World Bank and the International Monetary Fund
Critical Thinking 558
(IMF) 584
Developing Workplace Skills 559
Reaching Beyond Our Borders: New Day, New
Taking It to the Net 560 Issues across the Globe 585
Video Case: Where Did All My Money Go? 560 Summary 585
Notes 561 Key Terms 588
Photo Credits 562 Critical Thinking 588
Developing Workplace Skills 588
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.