11.1 resource management worksheet answer key

Google Management

Choose an organization and/or business and prepare an 8 -9 page paper on a "best" practice. For instance, you could choose an organization that is well known for its employee training programs. What makes this organization one of the best in the industry? How does this training empower, motivate, and educate its employees? How can another organization implement this practice?

In the past students have written on sports teams, car makers, on-line retailers, etc... any organization that has an organizational "best practice". Again, the practice can be employee rewards, motivation, feedback, culture, etc... something that is related to organizational behavior.

1) Identify the organization and talk about its mission and vision, who leads it? Where is it located?

2) Discuss its best practice or practices (books, newspapers, etc... will write about these) -- this can include sports teams, educational institutions, etc...

3) Tie this best practice into concepts that we have talked about in the course

4) How could another organization adopt this best practice?

Your paper should be NO LESS than 8 pages and NO MORE than 9 pages, double-spaced, Times New Roman, 12-point font and utilize at least 5 references (to include the textbook) to support your claims on the organization. Please include a cover page and a bibliography/reference page using APA (these are not included in the page count). Be certain to utilize the textbook to support your discussion within the paper.

ORGANIZATIONAL BEHAVIOR AND MANAGEMENT, ELEVENTH EDITION

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Names: Konopaske, Robert, author. | Ivancevich, John M., author. | Matteson, Michael T., author. Title: Organizational behavior and management/Robert Konopaske, Associate Professor of Management, McCoy College of Business Administration, Texas State University, John M. Ivancevich, Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston, Michael T. Matteson, Professor Emeritus Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston. Description: Eleventh Edition. | Dubuque, IA : McGraw-Hill Education, 2016. | Revised edition of Organizational behavior and management. Identifiers: LCCN 2016041475 | ISBN 9781259894534 (alk. paper) | ISBN 1259894533 (alk. paper) Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .I89 2016 | DDC 658.4--dc23 LC record available at https://lccn.loc.gov/2016041475

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iii

About the Authors Robert Konopaske is Associate Professor of Management at the McCoy College of Business Administration, Texas State University. He earned his Doctoral Degree in management from the University of Houston, a Master’s Degree in international business studies from the University of South Carolina, and an undergraduate degree at Rutgers University. His teaching and research interests focus on international management, organizational behavior, and human resource management issues. The recipient of numerous teaching awards at four different universities, Rob is also the co-author of several textbooks, including: M: Management (4th and 5th editions), Manage- ment: Leading & Collaborating in a Competitive World (12th edition), Organizations: Behavior, Structure, Processes (11th, 12th, 13th, and 14th editions), Organizational Behav- ior and Management (7th, 8th, 9th, 10th, and 11th editions), Human Resource Management (12th edition) and Global Management and Organizational Behavior. He has published numerous academic articles in Journal of Managerial Psychology, Journal of Applied Psychology, Academy of Management Executive, Journal of Management Education, Journal of Business Research, Work and Stress, Human Resource Management Review, Management International Review, Business Horizons, Human Resource Management, and International Journal of Human Resource Management. He has served on the editorial boards of two international management journals, and has held multiple national leadership positions for the Academy of Management’s Human Resource Division. Rob has worked in the private, nonprofit, and education sectors, and has conducted research-based consulting for such global companies as Credit Suisse, PricewaterhouseCoopers, and KPMG.

John (Jack) M. Ivancevich (August 16, 1939–October 26, 2009): In Memoriam. Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston; B.S. from Purdue University, and MBA and DBA from the University of Maryland. Never one to miss a deadline, Jack submitted his last revisions for this textbook during the summer of 2009. A few months later, he passed away with quiet dignity surrounded by loved ones. On that day, the management discipline lost a passionate and award-winning educator, and an influential leader with an incomparable work ethic and sense of integrity. Jack led by example, and those of us who were fortunate enough to know him were inspired to work harder and reach higher than we ever thought possible. Jack was committed to higher education and the creation and dissemination of management knowledge. He was comfortable in the classroom and would encourage students to think criti- cally about and apply the concepts and theories of organizational behavior and management to their lives. Jack had an “open door” policy, and spent countless hours helping students and answering their questions. His reputation as a tough teacher was softened by his appreciation for the need of many students to balance a desire for education with a full-time job and family demands. Among Jack’s most valued honors was the Ester Farfel Award for Research, Teaching, and Service Excellence, the highest honor bestowed to a University of Houston faculty member. Complementing his passion for teaching, Jack loved to write books. He tried to write at least 300 days a year, averaging about 1,200 words per day. Over a 40-year period, Jack reached well over a million students by authoring or co-authoring 88 books about various aspects of manage- ment and organizational behavior. In 1987, the first edition of Organizational Behavior and

iv About the Authors

Management (with Michael T. Matteson) was published. Preceding this textbook were several others like the award-winning and popular textbook Organizations: Behavior, Structure, Pro- cesses (co-authored with James L. Gibson and James H. Donnelly); which was first published in 1973 and is currently in its 14th edition. In 2005, Organizations (11th edition) received the McGuffey Longevity Award from the Text and Academic Authors Association. This award rec- ognizes textbooks and learning materials whose excellence has been demonstrated over time. A sample of Jack’s other textbooks include: Human Resource Management, Global Management and Organizational Behavior (co-authored with Robert Konopaske), Management and Organi- zational Behavior Classics (co-authored with Michael T. Matteson), Fundamentals of Manage- ment: Functions, Behavior, Models (co-authored with James L. Gibson and James H. Donnelly), and Management: Quality and Competitiveness (co-authored with Peter Lorenzi, Steven Skinner, and Philip Crosby). Jack was not only an accomplished educator and book author but also a prolific and highly respected researcher. Well known for his highly disciplined work ethic, Jack authored or co-authored some 160 research articles, which were published in such jour- nals as Academy of Management Journal, Academy of Management Review, Administra- tive Science Quarterly, Journal of Applied Psychology, and Harvard Business Review. His research was highly influential and explored a range of management and organiza- tional behavior topics, including job stress, white-collar crime, diversity management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and organizational climate. The diversity of Jack’s research reflected the complex and interrelated nature of management issues in organizations. In 2000, in recognition of publishing a substantial number of refereed articles in Academy of Management journals, Jack was inducted into the Academy of Management’s Journals Hall of Fame as one of the first 33 Charter Members. This is an impressive achievement when considering that in 2000, the Academy of Management had approximately 13,500 members. In addition to teaching, writing books and conducting research, Jack applied his knowl- edge of organizational behavior and management to the several leadership positions he held since joining the University of Houston faculty in 1974. In 1975, he was named Chair of the Department of Organizational Behavior and Management, and in the following year, Jack became the Associate Dean of Research for the College of Business Administration at UH. In 1979, Jack was awarded the Hugh Roy and Lillie Cranz Cullen Chair of Organiza- tional Behavior and Management, among the most prestigious positions at the University of Houston. From 1988–1995, he served as Dean of the UH College of Business Adminis- tration. In 1995, Jack was named UH Executive Vice President for Academic Affairs and Provost, a position he held for two years. Through visionary, performance-driven, and prin- cipled leadership, Jack left a lasting and meaningful imprint on the entire University of Houston community, including internal constituents like fellow administrators, Deans, pro- gram directors, faculty, staff, and students, as well as external stakeholders like legislators, donors, alumni, and area company executives. His accomplishments were even more extraordinary, given the fact that Jack continued to teach classes, write books, and publish research articles while holding these myriad leadership positions. Jack made innumerable contributions to all facets of higher education, all of which will be felt for years to come. Perhaps one of Jack’s greatest and longest lasting legacies will be from the many individuals he mentored during his 45 years in higher education. As busy as he was throughout his entire career, Jack was extremely generous with his time and made it a priority to mentor a large number of individuals, including current and former students, junior faculty, colleagues from the publishing industry, and many others. He wanted people to succeed and would do everything he could to help them accomplish their goals.

About the Authors v

Jack would often invite younger faculty members to collaborate with him on research proj- ects. As a member of 80 doctoral and master’s committees, Jack relished his role as mentor and would spend hours with graduate students, helping and guiding them through the pro- cess of conducting original research for their theses or dissertations. Jack was always will- ing to make phone calls and write detailed letters of recommendation on behalf of his students to help them get hired or, later in their careers, get promoted or be awarded tenure. He invested heavily in these individuals and expected hard work and commitment to excel- lence in return. Many of these former graduate students are professors at universities and colleges throughout the United States and now find themselves mentoring and inspiring their own students. On a personal note, Jack was my mentor, colleague, and friend. Words cannot capture how grateful and honored I feel to have worked so closely with him on several organizational behavior textbooks and research projects over the past 12 years. We became acquainted in 1999, after Jack agreed to be my dissertation chair at the University of Houston. Given Jack’s stature and commanding presence, I was a little intimidated by him in the beginning but quickly realized he was a “gentle giant” who could switch rapidly between discussions of research, books, academic careers, teaching, and the importance of being a good family man and father, and achieving balance in one’s life. Jack was a great story teller and especially liked relating tales of his early years in the south side of Chicago. Like me, he was proud of the fact that he grew up in a multiethnic environment where one’s parents, extended family, and family friends were always around to keep an eye on the kids in the neighborhood, while always ready to offer them a delicious home-cooked meal. Jack taught me many things; some lessons were passed along during thoughtful conversations, but most came by observing him in action. Jack taught me to take life “head on” with a strong, positive, and can-do attitude while never losing sight of the importance of being a loving and committed husband and father. He will be sorely missed by all of us who were fortunate to have been touched by his warm friendship and guided by his generous spirit. Jack is survived by his wife of 37 years, Margaret (Pegi) Karsner Ivancevich; son Daniel and wife Susan; daughter Jill and husband David Zacha, Jr.; and grandchildren Kathryn Diane and Amanda Dana Ivancevich, and Hunter David Michael, Hailey Dana, and Hannah Marie Zacha. Jack was preceded in death by his beloved daughter Dana and by his first wife, Diane Frances Murphy Ivancevich.

Robert Konopaske December 28, 2009

Michael T. Matteson is an Emeritus Professor of Management at the University of Houston. After receiving his Ph.D. in industrial psychology from the University of Houston, Mike taught graduate and undergraduate courses in the C. T. Bauer College of Business for over three decades. He also served as Associate Dean and Department Chairperson at the University of Houston. Mike has published numerous research and theory-based articles on occupational stress, managing stress, preventive health, work-site health promotion, intervention programs, and research methods. He has consulted with and provided training programs for organizations in numerous industries. He is the co-author or co-editor of a number of textbooks and trade books including Stress and Work: A Managerial Perspective, Management and Organizational Behavior Classics, and Controlling Work Stress.

vi

Brief Contents Preface xiii

PART ONE The Field of Organizational Behavior 1 1 Effective Managers Understand

Organizational Behavior 3 2 International and Organizational

Culture 31

PART TWO Understanding and Managing Individual Behavior 55 3 Individual Differences at Work 57 4 Perceptions and Attributions 81 5 Motivation 101 6 Job Design and Performance 131 7 Evaluation and Rewards Influence

Behavior 157 8 Managing Employee Behavior 191 9 Managing Individual Stress 213

PART THREE Group Behavior and Interpersonal Influence 245 10 Groups and Teams 247 11 Managing Conflict and Negotiations 279 12 Power and Politics 307

PART FOUR Organizational Processes 335 13 Communicating Effectively 337 14 Decision Making 371 15 Leadership 401

PART FIVE Organizational Design, Change, and Innovation 437 16 Organizational Structure and Design 439 17 Managing Organizational Change 471

APPENDIX Quantitative and Qualitative Research Techniques for Studying Organizational Behavior and Management Practice 503

GLOSSARY 513

ENDNOTES 525

INDEXES 575

vii

Contents Preface xiii

PART ONE THE FIELD OF ORGANIZATIONAL BEHAVIOR 1

Chapter 1 Effective Managers Understand Organizational Behavior 3 The Evolution of Management 5

Scientific Management 6 Administrative Management 7

Why Study Organizational Behavior? 7 Leaders and Organizational Behavior 9 The Hawthorne Studies 9

Systems Theory and Organizational Effectiveness 10 Quality 12 Productivity 12 Efficiency 13 Satisfaction 13 Adaptiveness 13 Development 13

Environmental Forces Reshaping Management Practice 14 Framing the Study of Organizational Behavior 18

The Organization’s Environment 18 Understanding and Managing Individual Behavior 18 Group Behavior and Interpersonal Influence 21 Organizational Processes 23 Organizational Design, Change, and Innovation 24

Summary of Key Points 25 Review and Discussion Questions 26 Exercise 26 Case 29

Chapter 2 International and Organizational Culture 31 National Culture and Values Influence Workplace Behavior 32

Organizational Culture Matters 34 Organizational Culture Defined 35 Organizational Culture and Its Effects 35 Creating Organizational Culture 37

Influencing Culture Change 40 Socialization Sustains the Culture 41

Anticipatory Socialization 42 Accommodation 42 Role Management 43

Characteristics of Effective Socialization 43 Mentoring 43 Spirituality and Culture 46

Summary of Key Points 49 Review and Discussion Questions 49 Exercises 50 Case 52

PART TWO UNDERSTANDING AND MANAGING INDIVIDUAL BEHAVIOR 55

Chapter 3 Individual Differences at Work 57 Why Individual Differences Matter 57 Individual Differences Influence Work Behavior 58

Diversity 59 Abilities and Skills 62 Attitudes 64 Personality 67 Emotions 72

Summary of Key Points 76 Review and Discussion Questions 76 Exercise 77 Case 79

Chapter 4 Perceptions and Attributions 81 The Perceptual Process 81 Perceptual Grouping 85 Perceptual Groupings Can Create Inaccuracies 87

Stereotyping 87 Selective and Divided Attention 88

viii Contents

Halo Effect 88 Similar-to-Me Errors 89 Situational Factors 89 Needs and Desires 89

Attribution Theory 90 Impression Management 92

An Interpersonal Process 92 A Model and Impression Management in Practice 93

Summary of Key Points 95 Review and Discussion Questions 95 Exercises 96 Case 99

Chapter 5 Motivation 101 The Starting Point: Needs Motivate Employees 103 Content Approaches 105

Maslow’s Needs Hierarchy 105 Alderfer’s ERG Theory 107 Herzberg’s Two-Factor Theory 108 McClelland’s Learned Needs Theory 111 A Synopsis of the Four Content Theories 112

Process Approaches 113 Expectancy Theory 113 Equity Theory 115 Change Procedures to Restore Equity 115 Research on Equity 116 Goal Setting 119 Goal-Setting Research 121

Motivation and the Psychological Contract 122 Effective Managers Motivate Their Employees 123 Summary of Key Points 124 Review and Discussion Questions 125 Exercise 126 Case 127

Chapter 6 Job Design and Performance 131 Job Design and Quality of Work Life 132 A General Model of Job Design 133 Job Performance Outcomes 134

Objective Outcomes 134 Behavioral Outcomes 134 Intrinsic and Extrinsic Outcomes 135 Job Satisfaction Outcomes 136

Job Design: Range, Depth, and Relationships 137 Range and Depth 137 Job Relationships 138

The Way People Perceive Their Jobs 139 Job Characteristics 140 Individual Differences 140 Social Setting Differences 140

Increasing Range in Jobs: Job Rotation and Job Enlargement 141

Job Rotation 141 Job Enlargement 141

Increasing Depth in Jobs: Job Enrichment 142 Self-Managed Teams 145 Alternative Work Arrangements 146

Total Quality Management and Job Design 149 Summary of Key Points 151 Review and Discussion Questions 152 Exercise 153 Case 155

Chapter 7 Evaluation and Rewards Influence Behavior 157 Evaluation of Performance 158

Purposes of Evaluation 158 Focus of Evaluation 160 Improving Evaluations 160

Performance Evaluation Feedback 161 Purpose of Evaluation Feedback 162 A Feedback Model 162 Multisource Feedback: A 360-Degree Approach 163

Reinforcement Theory 164 Reinforcement 165 Punishment 165 Extinction 165 Reinforcement Schedules 165

A Model of Individual Rewards 167 Intrinsic and Extrinsic Rewards 168 Rewards Interact 171 Administering Rewards 172

Rewards Affect Important Organizational Outcomes 174

Turnover and Absenteeism 174 Job Performance 175 Organizational Commitment 175

Innovative Reward Systems 176 Skill-Based Pay 176 Broadbanding 176 Concierge Services 178 Team-Based Rewards 178

Contents ix

Part-Time Benefits 179 Gain-Sharing 180 Employee Stock Ownership Plans 180 Line of Sight: The Key Issue 181

Summary of Key Points 182 Review and Discussion Questions 184 Exercises 184 Case 188

Chapter 8 Managing Employee Behavior 191 The Management of Employee Behavior 191 The Emerging Study of Misbehavior 193

Antecedents 193 Mediators 193 Outcomes 195 Costs 195 Management Interventions 195

Selected Misbehaviors 196 Sexual Harassment 196 Aggression and Violence 198 Bullying 199 Incivility 200 Fraud 201 Substance Abuse at Work 203 Cyberslacking 204 Sabotage 205 Theft 206

Privacy 207 E-Mail Privacy 208 The Organizational Threshold 208 Testing Policy 209

Summary of Key Points 209 Review and Discussion Questions 210 Case 210

Chapter 9 Managing Individual Stress 213 What Is Stress? 214 Stress Model 216 Work Stressors: Individual, Group, and Organizational 218

Individual Stressors 218 Group, Organizational, and Nonwork Stressors 220 Cognitive Appraisal 221 Coping with Stress 222

Stress Outcomes 223 Individual Outcomes 223 Organizational Consequences 227

Stress Moderators 228 Personality 228 Type A Behavior Pattern 229 Social Support 230

Managing Stress: Individual and Organizational Approaches 230

Maximizing Person–Environment Fit 232 Organizational Stress Prevention and Management Programs 233

Summary of Key Points 238 Review and Discussion Questions 239 Exercise 240 Case 243

PART THREE GROUP BEHAVIOR AND INTERPERSONAL INFLUENCE 245

Chapter 10 Groups and Teams 247 The Nature of Groups 249 Types of Groups 250

Formal Groups 251 Informal Groups 251

Why People Form Groups 252 Stages of Group Development 253

Forming 253 Storming 253 Norming 254 Performing 254 Adjourning 254

Characteristics of Groups 255 Composition 255 Status Hierarchy 255 Roles 256 Norms 257 Leadership 258 Cohesiveness 259

Group Effectiveness 262 Teams 263

Types of Teams 263 Team Effectiveness 267

Summary of Key Points 269 Review and Discussion Questions 270 Exercises 272 Case 277

x Contents

Chapter 11 Managing Conflict and Negotiations 279 A Contemporary Perspective on Intergroup Conflict 280

Functional Conflict 281 Dysfunctional Conflict 281 Conflict and Organizational Performance 281

What Causes Intergroup Conflict? 282 Work Interdependence 282 Goal Differences 284 Perceptual Differences 284

The Consequences of Dysfunctional Intergroup Conflict 285

Changes within Groups 285 Changes between Groups 286

Managing Intergroup Conflict through Resolution 287

Dominating 287 Accommodating 288 Problem Solving 288 Avoiding 290 Compromising 290

Stimulating Constructive Intergroup Conflict 292 Bringing Outside Individuals into the Group 292 Altering the Organization’s Structure 293 Stimulating Competition 293 Using Programmed Conflict 293

Negotiations 293 Win–Lose Negotiating 294 Win–Win Negotiating 295

Negotiation Tactics 296 Increasing Negotiation Effectiveness 296

Using Third-Party Negotiations 297 Negotiating Globally 298 Improving Negotiations 299

Summary of Key Points 300 Review and Discussion Questions 301 Exercises 302 Case 305

Chapter 12 Power and Politics 307 The Concept of Power 307 Where Does Power Come From? 309

Interpersonal Power 309 Structural Power 311

Empowerment 314

Subunit or Interdepartmental Power 316 Coping with Uncertainty 317 Centrality 317 Substitutability 318

Obedience and the Illusion of Power 318 Political Strategies and Tactics 320

Research on Politics 320 Game Playing 321 Political Influence Tactics 322 Impression Management 324

Ethics, Power, and Politics 325 Using Power to Manage Effectively 327 Summary of Key Points 329 Review and Discussion Questions 329 Exercises 330 Case 333

PART FOUR ORGANIZATIONAL PROCESSES 335

Chapter 13 Communicating Effectively 337 The Communication Process 339

The Elements of Communication 340 Nonverbal Messages 342

Communicating within Organizations 343 Downward Communication 343 Upward Communication 343 Horizontal Communication 344 Diagonal Communication 344 Communicating Externally 344

Information Richness 346 Technology and Communication 347

Internet, Intranets, and Extranets 347 Electronic Mail, Messaging, and Social Networking 347 Smartphones 349 Voice Mail 349 Videoconferencing, Teleconferencing, and e-Meetings/ Collaboration 349

Interpersonal Communication 350 Multicultural Communication 351

Words 351 Space 352 Time 352

Barriers to Effective Communication 353 Frame of Reference 353 Selective Listening 354 Value Judgments 354

Contents xi

Source Credibility 355 Filtering 355 In-Group Language 355 Status Differences 356 Time Pressures 356 Communication Overload 356

Improving Communication in Organizations 357 Following Up 357 Regulating Information Flow 357 Face-to-Face Communication 358 Empathy 358 Repetition 359 Encouraging Mutual Trust 359 Effective Timing 359 Simplifying Language 359 Using the Grapevine 359 Ethical Communication 360

Summary of Key Points 361 Review and Discussion Questions 363 Exercise 363 Case 365

Chapter 14 Decision Making 371 Types of Decisions 372 A Rational Decision-Making Process 374

Establish Goals and Measure Results 374 Identify and Analyze the Problem(s) 375 Develop Alternative Solutions 376 Evaluate Alternative Solutions 377 Select the Best Solution 378 Implement the Decision 378 Follow Up and Evaluate the Decision 379

Alternatives to Rational Decision Making 379 Administrative Decision Making 379 Intuitive Decision Making 380

Behavioral Influences on Decision Making 380 Values 381 Risk Orientation 383 Dissonance 384 Escalation of Commitment 385

Group Decision Making 387 Individual versus Group Decision Making 387 Creativity in Group Decision Making 388 Techniques for Stimulating Group Creativity 389

Summary of Key Points 393 Review and Discussion Questions 394 Exercises 394 Case 399

Chapter 15 Leadership 401 What Is Leadership? 401

Is Leadership Important? 403 Trait Approaches: Leaders Are Born That Way 404

Intelligence 405 Personality 405 Physical Characteristics 405 Supervisory Ability 406

Behavioral Approaches: Leaders’ Actions Determine Their Effectiveness 406

Job-Centered and Employee-Centered Leadership 407 Initiating Structure and Consideration 407 Critique of Trait and Behavioral Approaches 408

Situational Approaches: Leaders’ Effectiveness Depends on the Situation 408

Fiedler’s Contingency Leadership Model 409 Vroom-Jago Leadership Model 410 Path–Goal Leadership Model 413 Hersey-Blanchard Situational Leadership Theory 415

Emerging Perspectives of Leadership 418 Charismatic Leadership 418 Transactional and Transformational Leadership 420 Coaching 423 Servant Leadership 424

Multicultural Leadership 425 Cross-Cultural Research 426

Summary of Key Points 427 Review and Discussion Questions 428 Exercises 430 Case 433

PART FIVE ORGANIZATIONAL DESIGN, CHANGE, AND INNOVATION 437

Chapter 16 Organizational Structure and Design 439 Organizational Design Models 440

The Mechanistic Model 440 The Organic Model 442

Designing an Organizational Structure 444 Division of Labor 446 Delegation of Authority 447 Departmental Bases 448 The Matrix Model 452 Span of Control 454

xii Contents

Designing an Organizational Structure: Additional Issues to Consider 456

Formalization 456 Centralization 456 Complexity 457

Multinational Structure and Design 458 Virtual Organizations 460

The Realities of Virtual Organizations 462 Boundaryless Organizations 463

Summary of Key Points 464 Review and Discussion Questions 466 Exercise 466 Case 468

Chapter 17 Managing Organizational Change 471 A General Model of Organizational Change 472 Change Agents: Forms of Intervention 474

External Change Agents 474 Internal Change Agents 474 External–Internal Change Agents 475

Resistance to Change 476 Individual Resistance 476 Organizational Resistance 477 Strategies for Overcoming Resistance to Change 478

A Model of Organizational Change and Development 479

Forces for Change 480 Diagnosis of a Problem 482 Selection of Appropriate Methods 483 Impediments and Limiting Conditions 492 Implementing the Method 493 Evaluating Program Effectiveness 494

How Effective Are Change Interventions? 495 Summary of Key Points 496 Review and Discussion Questions 497 Exercise 498 Case 500

Appendix Quantitative and Qualitative Research Techniques for Studying Organizational Behavior and Management Practice 503

Glossary 513

Endnotes 525

Indexes 575

xiii

Preface Revising and updating this textbook is always an exciting and challenging job. In com- pleting this eleventh edition of Organizational Behavior and Management, we reviewed the most current theories, research, and organizational applications for pos- sible inclusion. We retained the classic, influential, and long-standing work in organi- zational behavior. Chapter by chapter, we made a concerted effort to add several more company and other real-world examples to make the content more relevant and inter- esting for students. Our own teaching of organizational behavior and many excellent suggestions from the reviewers of the previous edition were factored into each phase of the revision.

The major task of the author team was to produce a student-friendly, accurate, clear, and meaningful revision that will result in enhanced student learning. The student and the instructor were always in mind as we carefully revised the book.

We have reviewed and considered numerous suggestions and notes from current instructors and students who use Organizational Behavior and Management, as well as from colleagues, managers, and previous users of the text. The themes and tone of these excellent ideas was to keep this book relevant, add more company examples than in pre- vious editions, and help users apply the content to their own lives and job situations. The basic structure has been kept much as it was originally, but we have significantly updated, streamlined, and/or expanded the content of each chapter. We have, in each new edition, added more comprehensive treatment of the content base. The content in this revision has been related to events, activities, and decisions made in organizational life. We have updated all information that needed to be refreshed. Our intention in making these changes has been to offer an intensive treatment of organizational behavior that helps instructors teach easily and effectively. As dedicated teachers, we revise with fellow teachers and the student population in mind. This book was not written as a research message or as a new theoretical model. Like its predecessors, the eleventh edition of Organizational Behavior and Management contains knowledge that applies both inside and outside the classroom.

Can the serious theory and research basis of organizational behavior be presented to students in an exciting, fun, and challenging way? We believe it can. Thus, we expanded the theory, research, and applications of the subject matter in the revision of the book. The eleventh edition of Organizational Behavior and Management differs from the previous editions in these ways: 1. We continue to include more domestic and global organizational examples to help

students relate theory and research to actual organizations and current events. Here is a sample of the real-world organizations we added to this revision: Airbnb, Zappos, Nordstrom, Deloitte, Tesla Motors, Macy’s, Saleforce.com, Trader Joe’s, Google (and its parent company, Alphabet), Chicago White Sox baseball organization, Apple, Facebook, Underground Elephant, Huddle, Valve Corporation, Denver Broncos, Hyatt Hotels, Publix Super Markets, General Motors, Fiat Chrysler, Volkswagen (Germany), Tencent Holdings (China), Ericsson (Sweden), Nestlé (Switzerland), Kia Motors (South Korea), Cirque du Soleil (Canada), Virgin Group (Britain), and H&M (Sweden).

xiv Preface

2. Expanded coverage of topics relevant to managers in today’s business environment includes diversity statistics for the U.S. population and workforce over the next 40 years; the 2016 World’s Most Admired Companies; training areas where compa- nies spent the most money in 2015; top global cities and their importance in the worldwide business environment; how to retain Millennials who tend to switch jobs every two years; looking out for Generation Z, which will make its way to the work- force soon; Volkswagen’s emissions scandal; the best places to work in 2016; com- panies like Adobe and GE doing away with annual performance reviews; Wells Fargo’s support and inclusion of LGBT employees in its workforce; 2016’s most valuable brands; current statistics on workplace violence, sexual harassment, and discrimination cases; increasing numbers of telecommuters and “super-commuters”; the WeChat app revolution in China; using cloud computing to connect virtual team members across the globe; and CEOs using social media to communicate to employ- ees and customers.

3. Fundamental themes are woven throughout the book, including globalization, manag- ing diversity and demographic changes, technological changes, total quality, and eth- ics and social responsibility. These themes are consistent with the recommendations for balanced subject matter coverage made by the American Assembly of Collegiate Schools of Business/International Association for Management Education. This inter- nationally acclaimed accrediting body establishes the boundaries for appropriate topic coverage.

4. Most end-of-chapter cases have been refreshed. Two new cases have been added to replace previously used cases: Case 1.1, “REI Tells Employees to Go Outside,” and Case 10.1, “Zappos Eliminates Managers.”

5. Many of the book’s elements—Reality Check, Global OB, OB Matters, You Be the Judge, and Information You Can Use—have been updated or replaced with current top- ics and issues relevant to managers. The elements included in this edition are relevant, teachable, and comprehensive.

6. The complete set of materials—text, exercises, elements, and cases—stimulates stu- dents to think about how they would respond if they were in the situation being dis- cussed or described. Reading this new edition of Organizational Behavior and Management, students

become involved participants in learning about behavior and management within work set- tings. We have designed the book with instructional flexibility in mind. The book com- bines text, self-learning exercises, group participation exercises, and cases. These elements are directed at students interested in understanding, interpreting, and attempting to predict the behavior of people working in organizations.

Organizational functioning is complex. No single theory or model of organiza- tional behavior has emerged as the best or most practical. Thus, managers must be able to probe and diagnose organizational situations when they attempt to understand, interpret, and predict behavior. This edition of the text devotes considerable attention to encouraging the development of these probing and diagnostic skills. The first step in this development is for each reader to increase his or her own self-awareness. Before a person can diagnose why another person (a friend, subordinate, or competi- tor) is behaving in a particular way, he or she should conduct a self-analysis. This introspective first step is built into each chapter’s content and into the learning ele- ments found at the end of chapters. The content and these elements encourage the students to relate their own knowledge and experience to the text, exercises, and cases in the book.

Preface xv

Framework of the Book Organizational Behavior and Management is organized into five parts containing a total of 17 chapters, one appendix, and a comprehensive glossary. The framework highlights behavior, structure, and processes that are part of life in profit and nonprofit organizations. The five parts are as follows:

Part One: The Field of Organizational Behavior The first chapter, “Effective Managers Understand Organizational Behavior,” introduces the field of organizational behavior and explores the how, what, why, and when of organizational behavior as viewed and practiced by managers. Chapter 2, “International and Organizational Culture,” covers such issues as internal culture, cultural diversity, and cross-cultural research.

Part Two: Understanding and Managing Individual Behavior These seven chapters focus on the individual, including topics such as “Individual Differ- ences at Work” (Chapter 3), “Perceptions and Attributions” (Chapter 4), “Motivation” (Chapter 5), “Job Design and Performance” (Chapter 6), “Evaluation and Rewards Influ- ence Behavior” (Chapter 7), “Managing Employee Behavior” (Chapter 8), and “Managing Individual Stress” (Chapter 9).

Part Three: Group Behavior and Interpersonal Influence These two topics are explored in a three-chapter sequence: Chapter 10, “Groups and Teams”; Chapter 11, “Managing Conflict and Negotiations”; and Chapter 12, “Power and Politics.”

Part Four: Organizational Processes Part Four includes three chapters: Chapter 13, “Communicating Effectively”; Chapter 14, “Decision Making”; and Chapter 15, “Leadership.”

Part Five: Organizational Design, Change, and Innovation Two chapters make up the final part: Chapter 16, “Organizational Structure and Design,” and Chapter 17, “Managing Organizational Change.”

Features of the Eleventh Edition The “Reality Check” and “You Be the Judge” elements start and end each chapter and are helpful for reflective analysis and debate individually or in small in-class groups.

This edition includes many other teaching and discussion “elements.” We define a text element as a specific, content-based story, case, or example that is associated with and illustrates the chap- ter’s objectives and themes. The end-of-chapter elements include exercises and cases that were selected because of their relevance to the chapter content and because of feedback from adopters.

We have purposefully woven global events, situations, and examples throughout the book’s content, elements, and end-of-chapter material. Globalization is such a vital con- cern today that it must be presented and covered throughout the book.

Managing diversity in the workplace is an important topic, which is presented and dis- cussed throughout the book.

Ethical behavior and social corporate responsibility are topics of major concern throughout the world, especially in the wake of recent scandals. Examples, incidents, and debates that present ethical dilemmas are integrated throughout the chapters.

xvi Preface

The text emphasizes realism and relevance. Hundreds of real-world examples of decisions, business situations, problem solving, successes, and failures are presented. Fortune 1000 companies do not dominate this book. Smaller and medium-size firms that students may not be familiar with are also used to illustrate organizational behavior and management activities. Finally, we have taken the time and space to explain the concepts, frameworks, and studies presented in the text. It was not our intention to be an encyclope- dia of terms and references, but instead to use the ideas, work, and concepts of colleagues only when they add learning value to the chapter content. The goal of each presentation is to present something of value. A “cookbook” list of terms, names, historical points of reference, or empirical studies often becomes pedantic and boring. Comments on previ- ous editions of this text suggest that Organizational Behavior and Management is read- able and teachable. We believe this is so as we actively teach using this book.

The learning and knowledge enrichment elements, the Reality Checks, OB Matters, Global OB examples, Information You Can Use, You Be the Judge features, exercises, and cases, can be used by instructors in any combination that fits the course objectives, teaching style, and classroom situation.

OB Matters OB Matters features are interspersed throughout the text. They focus on ethical issues, global examples, and general organizational behavior and management activities. The encounters bring the concepts to life by presenting meaningful examples of activities that tie in with the chapter content.

Global OB Global OB features focus specifically on global issues, problems, solutions, and programs. These are based on a variety of individual, group, or organizational situations.

Information You Can Use Information You Can Use features appear throughout the text—with at least one in each chapter. This element explains, in straightforward terms, principles of how to manage and how to lead. These principles are easy to understand and use and are based on experience, theory, and empirical research.

You Be the Judge The “You Be the Judge” scenarios in each chapter present a particular problem, dilemma, or issue and require the student to make a decision and solve the dilemma, problem, or situation. These action-oriented elements are intended to increase student involvement. Our “Comment” on the dilemmas is found at the end of each chapter.

Exercises Organizational Behavior and Management also includes self-learning and group exercises. Some of the exercises allow the individual student to participate in a way that enhances self-knowledge. These self-learning exercises illustrate how to gather and use feedback properly and emphasize the uniqueness of perception, values, personality, and communica- tion abilities. In addition, a number of exercises apply theories and principles from the text in group activities. Working in groups is a part of organizational life, so these exercises introduce a touch of reality. Group interaction can generate debates, lively discussions, testing of personal ideas, and sharing of information.

Preface xvii

Furthermore, the exercises are designed to involve the instructor in the learning process. Student participation allows for trying out techniques and patterns of behav- ior and integrating exercise materials with the text. None of the exercises requires advance preparation for the instructor, although some require returning to a particular section or model in the chapter for information. The main objective is to get the reader involved.

Cases The chapters end with full-length cases. These cases reflect a blend of old- and new-econ- omy examples, principles, and lessons. Lessons can and are still being learned from older situations, recent examples, and current front-page news incidents. These realistic, dynamic cases link theory, research, and practice. They provide an inside view of various organiza- tional settings and dynamics. The cases, like the real world, do not have one “right” solu- tion. Instead, each case challenges students to analyze the complexity of the work environment as if they were general managers. The cases also are an invaluable teaching tool. They encourage the individual student to probe, diagnose, and creatively solve real problems. Group participation and learning are encouraged through in-class discussion and debate. The questions at the end of each case may be used to guide the discussion. A case analysis should follow the following format: 1. Read the case quickly. 2. Reread the case using the following model:

a. Define the major problem in the case in organizational behavior and management terms.

b. If information is incomplete, which it is likely to be, make realistic assumptions. c. Outline the probable causes of the problem. d. Consider the costs and benefits of each possible solution. e. Choose a solution and describe how you would implement it. f. Go over the case again. Make sure the questions at the end of the case are answered,

and make sure your solution is efficient, feasible, ethical, legally defensible, and can be defended in classroom debate.

Other Learning Devices Learning objectives begin each chapter to help the reader anticipate the chapter’s concepts, practices, and concerns.

An important part of any course is vocabulary building. Thus, the book provides a thor- ough glossary of key terms at the end of the book, as well as key terms highlighted and defined in the pages of each chapter. Before a quiz or test, students can use the glossary to pick out terms that they will be expected to know and use.

We were determined to help the reader prepare his or her own portrait of organizational behavior and management. We hope the text, exercises, cases, and other learning and knowledge enrichment elements help each student become an adventurous explorer of how organizational behavior and management occurs within organizations.

Supplementary Materials The eleventh edition includes a variety of supplementary materials, all designed to provide additional classroom support for instructors. These materials are as follows:

xviii Preface

McGraw-Hill Connect®: connect.mheducation.com Continually evolving, McGraw-Hill Connect® has been redesigned to provide the only true adaptive learning experience delivered within a simple and easy-to-navigate environment, placing students at the very center. ∙ Performance Analytics—Now available for both instructors and students, easy-to-deci-

pher data illuminate course performance. Students always know how they’re doing in class, while instructors can view student and section performance at-a-glance.

∙ Personalized Learning—Squeezing the most out of study time, the adaptive engine within Connect creates a highly personalized learning path for each student by identify- ing areas of weakness and providing learning resources to assist in the moment of need. This seamless integration of reading, practice, and assessment ensures that the focus is

on the most important content for that individual.

Instructor Library The Connect Management Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. Instructor materials include the Instructor’s Manual, PowerPoint slides, and Test Bank and Videos.

The Instructor’s Manual is organized to follow each chapter in the text. It includes chap- ter objectives, chapter synopses, chapter outlines with tips and ideas, and project and class speaker ideas. Organizational encounter discussion questions and suggested answers, as well as exercise and case notes, are also provided to help you incorporate these dynamic features into your lecture presentations.

The Test Bank has been updated to complement the eleventh edition of the text. This testing resource contains approximately 100 true/false, multiple choice, and essay ques- tions per chapter. Each question is classified according to level of difficulty and contains a reference to the question’s accompanying learning objective.

LearnSmart®: The eleventh edition of Organizational Behavior and Management is available with Learn- Smart, the most widely used adaptive learning resource, which is proven to improve grades. To improve your understanding of this subject and improve your grades, go to McGraw- Hill Connect® connect.mheducation.com, and find out more about LearnSmart. By help- ing students focus on the most important information they need to learn, LearnSmart personalizes the learning experience so they can study as efficiently as possible.

SmartBook®: An extension of LearnSmart, SmartBook is an adaptive eBook that helps students focus their study time more effectively. As students read, SmartBook assesses comprehension and dynamically highlights where they need to study more.

Manager’s Hot Seat: Now instructors can put students in the hot seat with access to an interactive program. Stu- dents watch real managers apply their years of experience when confronting unscripted issues. As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager. At the end of the scenario, students watch a post-interview with the manager to view how their responses

Preface xix

matched up to the manager’s decisions. The Manager’s Hot Seat videos are now available as assignments in Connect.

Self-Assessments Students can explore inclinations and preferences regarding organizational behavior topics such as active listening, creativity, decision making, and diversity.

Contributors The authors wish to acknowledge the many scholars, managers, reviewers, and researchers who contributed to every edition of Organizational Behavior and Management. In particu- lar, we would like to thank the following reviewers of this edition, whose valuable feed- back helped guide this revision of the book: James L. Hall, Santa Clara College; Debra D. Kuhl, Pensacola State College; David Robertson, Syracuse University and Le Moyne Col- lege; and William J. Waxman, Edison State Community College. We are indebted to those individuals who granted permission for the use of exercises and cases. In addition, adopters of former editions have made invaluable suggestions, offered materials to incorporate, and informed us about what worked well. These adopters are too numerous to list, but we appreciate the votes of confidence, the willingness to help us improve the book, and the obvious dedication each of you have to teaching.

Michael Dutch, professor of business administration at Guilford College, updated and revised the Instructor’s Manual that accompanies this edition. We appreciate his conscien- tiousness and high-quality work.

In addition, sections of the book were shaped significantly by two colleagues, James Donnelly, Jr., and James Gibson at the University of Kentucky. These two colleagues have shared and put into practice a common belief that teaching and learning about organiza- tional behavior and management can be an exhilarating and worthwhile experience. Roger Blakeney, Dick DeFrank, Bob Keller, Tim McMahon, Dale Rude, and Jim Phillips, all at the University of Houston; Dave Schweiger at the University of South Carolina; and Art Jago at the University of Missouri have exchanged materials, ideas, and opinions with the authors over the years, and these are reflected in these pages.

Finally, the book is dedicated to our current and former organizational behavior and management students at Texas State University, the University of Maryland, the University of Kentucky, the University of North Carolina at Wilmington, Florida Atlantic University, and the University of Houston. We also dedicate this textbook to the students who are becoming the managers and leaders so vital to the improvement of the overall quality of life in society in the 21st century.

Robert Konopaske

John M. Ivancevich

Michael T. Matteson

1. EFFECTIVE MANAGERS UNDERSTAND ORGANIZATIONAL BEHAVIOR

2. INTERNATIONAL AND ORGANIZATIONAL CULTURE

What really binds men together is their culture, the ideas and the standards they have in common.

Ruth Benedict, Patterns of Culture (1934)

© Shutterstock/Rawpixel.com, RF

P A R T O N E

The Field of Organizational Behavior

3

Tony Hsieh, CEO of Zappos, has built a thriving and successful online shoe and retail business by changing the rules of how to organize, motivate, and lead employees. Over the past 15 years or so, Hsieh and his team have built the online retailer into a major success story while having a lot of fun along the way. In 2009, nine years after he co-founded the company, Amazon pur- chased Zappos for $1.2 billion.1 Still at the helm of Zappos today, Hsieh’s effectiveness as a manager and leader derive partly from his knowledge and use of organizational behavior princi- ples. He understands how to inspire and motivate individuals, both employees as well as custom- ers. Hsieh and his team carefully select employees who fit well with and contribute to the firm’s high performance, fun team atmosphere. In those instances when any new employees want to leave the company after they complete training, they are offered a $2,000 “bonus to quit.”2 The organizational processes at Zappos are focused on empowering employees and giving them the tools and support to succeed. The company is flexible and adapts to the evolving needs of customers and the online retail market.

Hsieh believes in treating both employees and customers well, compared to many busi- nesses that place most of their focus on the customer. A major goal of Zappos is to treat its employees and customers with integrity, honesty, and commitment.3 Hsieh encourages employees to develop themselves by checking out books stored at the company, post ques- tions to the “Ask Anything” newsletter, make suggestions to improve how things get done, and contribute to Zappos’s fun and sometimes zany work environment. Employees have been known to volunteer to shave their heads (in a mullet style or in the shape of a “No. 1”), act in unconventional ways during job interviews, wear colorful wigs, and blow horns and ring cowbells to entertain tour groups who visit the company.4

Effective Managers Understand Organizational Behavior Learning Objectives

After completing Chapter 1, you should be able to:

Summarize key contributions from the evolution of management.

Discuss why it is important to understand organizational behavior.

Explain how systems theory relates to organizational effectiveness.

Analyze the environmental forces affecting today’s management practices.

Understand how to frame the study of organizational behavior.

C H A P T E R O N E

© Klaus Tiedge/Getty Images, RF

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Employees aren’t the only stakeholders who benefit from Hsieh’s approach. Customers are spoiled when they call Zappos’s customer service representatives who are encouraged to give customers a “Wow!” experience. Surprisingly, customer service employees at Zappos aren’t told how long they can spend on the phone with customers. In a time when many call-in customer service operations are tightly controlled or outsourced, Hsieh encourages his employees to stay on the phone with a customer for as long as it takes to connect with them and make them happy (the longest recorded phone call lasted six hours). Employees have been known to give custom- ers free shipping both ways, send flowers and surprise coupons, write thank-you notes, or even help a customer find a pizza place that delivers all night.5

Compared to Tony Hsieh, some might see Jack Welch, former chief executive officer of General Electric, as a traditional hard-edge authoritarian manager. By all accounts, there seems to be some truth in that description. In his early days, Welch had a reputation for eliminating entire layers of employees. He was referred to as “Neutron Jack.” People were eliminated, but the firm’s buildings remained intact. Eventually, however, Welch learned that the human being is essential and the key to an organization’s success:

The talents of our people are greatly underestimated and their skills are underutilized. Our biggest task is to fundamentally redesign our relationship with our employees. The objective is to build a place where people have the freedom to be creative, where they feel a sense of accomplishment—a place that brings out the best in everybody.6

Reality Check How much do you know about organizations?

1. True or false: Eighteen of the top 25 largest (in market value) global companies are from the United States. a. True b. False

2. The first comprehensive general theory of management applied to organizations was offered by . a. Henry Ford b. Thomas Watson c. Henri Fayol d. Thomas Edison

3. An American icon who emphasized the importance of quality production and products was . a. W. Edwards Deming b. Walt Disney c. Sam Walton d. Mark Stine

4. The most publicized study of organizations is called the . a. Los Alamos Experiment b. Tavistock Studies c. Hawthorne Studies d. Dell Analysis

5. Organizational behavior as a field is considered to be . a. outdated b. same as management c. multidisciplinary d. only applicable in developed countries

Chapter 1 Effective Managers Understand Organizational Behavior 5

The key to managing people in effective ways that lead to profits, productivity, and innovation ultimately lies in the manager’s perspective. Pfeffer captured the importance of viewing people as assets by posing a number of questions and issues:

When managers look at their people, do they see costs to be reduced? Do they see reluctant employees prone to opportunism, shirking, and free riding, who can’t be trusted and who need to be closely controlled through monitoring, rewards, and sanctions? . . . Or do they see intelligent, motivated, trustworthy individuals—the most critical and valuable strategy assets their organizations can have? . . . With the right perspective, anything is possible. With the wrong one, change efforts and new programs become gimmicks, and no amount of consulta- tions, seminars, and slogans will help.7

Hsieh’s, Welch’s, and Pfeffer’s views about how to view and treat human talent are critical to the overall success of any organization. In addition to treating employees as assets (and not liabilities), managers and leaders will need other skills and competencies. The next generation of leaders will need to be fast, agile, continuously learn, and stay in front of their competition, whether it’s local, national, or global. Foreign language ability, an international business perspective, and a strong knowledge of technology and the law will also help. Since change is so widespread and constant, managers will have to be entre- preneurial. The core qualities needed to create the ideal work atmosphere begin with intel- ligence, passion, a strong work ethic, a team orientation, and a genuine concern for people.8 The OB Matters discusses further some major drivers of change that today’s managers must address to be effective.

The Evolution of Management The formal and modern study of management started around 1900.9 However, the manage- ment process probably first began in the family organization, later expanded to the tribe and community, and finally pervaded the formalized political units such as those found in early Babylonia (5000 B.C.). The Egyptians, Chinese, Greeks, and Romans were all noted in history for major managerial feats such as the building of the pyramids, organizing gov- ernments, planning military maneuvers, operating trading companies that traversed the world, and controlling a geographically dispersed empire. However, management as a pro- cess was based on trial and error in order to accomplish specific goals, with little or no theory and virtually no sharing of ideas and practices. This lack of sharing slowed the influence of management practices throughout the world.

This trial-and-error approach to management continued during the Industrial Revolu- tion in England that lasted between 1700 and 1785.10 As a nation, England changed dra- matically from a rural society to the workshop of the world. It was the first nation to successfully make the transition from a rural-agrarian society to an industrial-commercial society.11 Management of the workshops of England was characterized by an emphasis on efficiency, strict controls, and rigid rules and procedures.

A new industrial era began in the United States around the time of the Civil War. There was a dramatic expansion of mechanical industries such as the railroad. In addition, large industrial manufacturing complexes employed hundreds of thousands of workers and grew in importance. Attempts to better plan, organize, lead, and control the work of employees in these complexes led managers to discuss and write about their ideas and managerial problems in engineering journals.

In 1881, a new way to study management started with a $100,000 gift by Joseph Wharton to the University of Pennsylvania to establish a management department in a college.

6

CHANGING MARKETS REQUIRE AGILE MANAGERS In this fast-paced global business environment, managers must be ag- ile and flexible to help companies sustain competitive advantage and stay one step ahead. To be successful, managers will need to harness the power of information technology and human capital.

The competitive forces confronting managers include technologi- cal changes and increasing globalization. These driving forces are characterized by greater knowledge and the use of information, the liberalization of developing economies (e.g., India, China, and some African nations), and new economic alliances and regulations.

A good way to gain perspective on how quickly environmental and competitive forces change is to examine the video rental industry. Until a few years ago, large brick-and-mortar firms like Blockbuster and Hollywood Video stores dominated the industry. Customers drove to a local store, rented a video to take home and watch, and then drove back to drop it off within a day or two to avoid late fees.

Netflix changed the industry by offering a monthly fee-based mail exchange service, which allowed customers to watch more movies each month without having to drive to a store to rent them. Then Netflix went a step further, creating an online streaming service to complement its mail exchange service. Customers pay a monthly sub- scription fee to download movies, TV shows, games, and original pro- gramming. Competition in the video streaming industry continues to grow as Google Play, Apple TV, Amazon Prime, Hulu Plus, and others allow consumers to download content and stream it on a variety of devices, including TVs, PCs, tablets, and mobile devices. Estimates put annual revenues from video streaming at $14 billion by 2020.

As seen with video rentals, markets can change quickly. Start- ups, strategic alliances, mergers, and acquisitions are changing

how domestic and global markets operate. The key to competing globally is human capital. To attract, develop, and retain human capital, organizations must make continuous learning available to their employees. Companies must identify critical knowledge, transfer this information to employees, and update it on a continu- ous basis. Knowledge is critical on the job, working in teams, inter- acting with internal and external stakeholders, and learning more about competitors.