Aon hewitt setup configuration specialist interview questions

1.Think about your present workplace or a workplace with which you are familiar.

Describe specifically and in detail how one of the motivational theories discussed in Chapter 5 was used to motivate employees. You can choose either one of the content approaches or one of the process approaches.

In describing how the theory was used (i.e., applied), make sure you

evaluate whether or not it was used effectively, and clarify why you

take the position that you do. 250 words

2.Compare and contrast the idea of extrinsic and intrinsic rewards with Herzberg’s Two-Factor theory of motivation? Does the idea of

intrinsic and extrinsic rewards agree in principle with Herzberg, or not? How

effectively have you seen intrinsic and extrinsic rewards used in the workplace?

250words

WA1.

Review the text discussion of Job Range, Job Depth, and Job Relationships.

Using the terms used in the text and in at least ONE other reference on this

topic, describe your current job position or one with which you are familiar.

Be sure to describe any attempts that the employer has made to increase job

range or job depth, and evaluate whether or not these efforts appeared to be

motivational to the employees. If you have not seen any attempts at increasing range or depth, describe such as change that you would recommend and tell how you expect it to change motivation in employees. 500words, 2 additional peer. APA

Tenth Edition

John M. Ivancevich

Robert Konopaske

Michael T. Matteson

Organizational

Behavior & Management

Tenth Edition

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

Robert Konopaske Associate Professor of Management, McCoy College of Business Administration, Texas State University

Michael T. Matteson Professor Emeritus Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston

Organizational Behavior and Management

This book is dedicated to our students and colleagues who inspire and challenge us.

ORGANIZATIONAL BEHAVIOR AND MANAGEMENT, TENTH EDITION

Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2011, 2008 and 2005. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

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Ivancevich, John M. Organizational behavior and management / John Ivancevich ((Deceased), Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston, Robertá Konopaske, Associate Professor of Management, McCoy College of Business Administration, Texas State University. — Tenth Edition. pages cm Includes index. ISBN-978-0-07-802946-2 (alk. paper) ISBN-0-07-802946-5 (alk. paper) 1. Organizational behavior. I. Konopaske, Robert. II. Title. HD58.7.I89 2013 658.4—dc23 2012044541

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iii

About the Authors 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 critically about and apply the concepts and theories of organiza- tional 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 R e search, 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 pe- riod, Jack reached well over a million students by authoring or co-authoring 88 books about various aspects of management and organizational behavior. In 1987, the first edition of Organiz a tional B e havior and Management (with Michael T. Matteson) was published. Preceding this textbook were several others like the award-winning and pop- ular textbook Organ i zations: Behavior, Structure, Pro c esses (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, Organiz a tions (11th edition) received the McGuffey Longevity Award from the Text and Academic Authors Association. This award recognizes text- books and learning materials whose excellence has been demonstrated over time. A sample of Jack’s other textbooks include: Human Resource Management, Global Man- agement and Organizational Behavior (co-authored with Robert Konopaske), Manage- ment and Organiz a tional Behavior Classics (co-authored with Michael T. Matteson), Fundamentals of Ma n agement: Functions, Behavior, Models (co-authored with James L. Gibson and James H. Donnelly), and Management: Quality and Competitiv e ness (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 journals as Academy of Management Jou r nal, Academy of Management Review, Ad- ministrative Science Quarterly, Journal of Applied Ps y chology, and Harvard Business Review . His research was highly influential and explored a range of management and organizational behavior topics, including job stress, white-collar crime, diversity

iv About the Authors

management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and organizational climate. The diver- sity 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 thirty-three 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 knowledge of organizational behavior and management to the several leadership posi- tions 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 Organizational Beha v ior 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 Administration. 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 principled leadership, Jack left a lasting and meaningful imprint on the entire University of Houston community, including internal constituents like fellow administrators, Deans, program directors, faculty, staff, and students, as well as external stakeholders like legislators, donors, alumni, and area company executives. His accomplishments were even more extraor- dinary, 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. Jack would often invite younger faculty members to collaborate with him on research projects. 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 process of conducting original research for their theses or dissertations. Jack was always willing 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 excellence in return. Many of these for- mer 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 cap- ture 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

About the Authors v

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 observ- ing 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 com- mitted 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 grandchil- dren 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

Robert Konopaske is Associate Professor of Management at the McCoy College of Busi- ness Administration, Texas State University. He earned his Doctoral Degree in manage- ment 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 College, 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: Organizations: Behavior, Structure, Pro- cesses (11 th , 12 th , 13 th , and 14th editions), Organizational Behavior and Management (7th, 8th, 9th, and 10th editions), Human Resource Manag e ment (12th edition) and Global Management and Organizational Behavior. He has published numerous aca- demic articles in Jou r nal of Applied Psychology, Academy of Management Executive, Journal of Management Ed u cation, Journal of Business Research, Work and Stress, Hu- man Resource Management Review , Manag e ment International Review , Bus i ness Hori- zons, 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.

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 indus- tries. He is the co-author or co-editor of a number of textbooks and trade books in- cluding Stress and Work: A Managerial Perspective, Management and Organizational B e havior 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 National and Organizational

Culture 33

PART TWO Understanding and Managing Individual Behavior 61 3 Individual Differences at Work 63 4 Perceptions and Attributions 89 5 Motivation 111 6 Job Design and Performance 141 7 Evaluation and Rewards Influence

Behavior 169 8 Managing Misbehavior 205 9 Managing Individual Stress 231

PART THREE Group Behavior and Interpersonal Influence 265 10 Groups and Teams 267 11 Managing Conflict and Negotiations 303 12 Power and Politics 335

PART FOUR Organizational Processes 365 13 Communicating Effectively 367 14 Decision Making 401 15 Leadership 433

PART FIVE Organizational Design, Change, and Innovation 471 16 Organizational Structure and

Design 473 17 Managing Organizational Change 505

APPENDIX A: Quantitative and Qualitative Research Techniques for Studying Organiz a tional Behavior and Management Practice 537

GLOSSARY 547

ENDNOTES 559

INDEXES 611

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 8 The Hawthorne Studies 9

Systems Theory and Organizational Effectiveness 11

Quality 12 Productivity 13 Efficiency 13 Satisfaction 13 Development 14

Environmental Forces Reshaping Management Practice 14 Framing the Study of Organizational Behavior 19

The Organization’s Environment 19 Understanding and Managing Individual Behavior 19 Group Behavior and Interpersonal Influence 22 Organizational Processes 24 Organizational Design, Change, and Innovation 26

Summary of Key Points 27 Review and Discussion Questions 27 Exercise 28 Case 30

Chapter 2 National and Organizational Culture 33

National Culture and Values Influence Workplace Behavior 34 Organizational Culture Matters 38

Organizational Culture Defined 38 Organizational Culture and Its Effects 40

Creating Organizational Culture 41 Influencing Culture Change 44 Socialization Sustains the Culture 46

Anticipatory Socialization 47 Accommodation 48 Role Management 48

Characteristics of Effective Socialization 48 Mentoring 49 Spirituality and Culture 52

Summary of Key Points 54 Review and Discussion Questions 55 Exercises 55 Case 57

PART TWO UNDERSTANDING AND MANAGING INDIVIDUAL BEHAVIOR 61

Chapter 3 Individual Differences at Work 63

Why Individual Differences Matter 63 Individual Differences Influenc e Work Behavior 64

Diversity 65 Abilities and Skills 69 Attitudes 70 Personality 74 Emotions 79

Summary of Key Points 83 Review and Discussion Questions 83 Exercise 84 Case 86

Chapter 4 Perceptions and Attributions 89

The Perceptual Process 89 Perceptual Grouping 93 Perceptual Groupings Can Create Inaccuracies 95

Stereotyping 95 Selective and Divided Attention 96 Halo Effect 97 Similar-to-Me Errors 97

viii Contents

Situational Factors 97 Needs and Desires 98

Attribution Theory 98 Impression Management 100

An Interpersonal Process 100 A Model and Impression Management in Practice 101

Summary of Key Points 103 Review and Discussion Questions 103 Exercises 104 Case 107

Chapter 5 Motivation 111

The Starting Point: Needs Motivate Employees 113 Content Approaches 115

Maslow’s Need Hierarchy 115 Alderfer’s ERG Theory 117 Herzberg’s Two-Factor Theory 118 McClelland’s Learned Needs Theory 122 A Synopsis of the Four Content Theories 123

Process Approaches 123 Expectancy Theory 124 Equity Theory 125 Change Procedures to Restore Equity 126 Research on Equity 127 Goal Setting 130 Goal-Setting Research 132

Motivation and the Psychological Contract 133 Effective Managers Motivate Their Employees 134 Summary of Key Points 135 Review and Discussion Questions 136 Exercise 137 Case 138

Chapter 6 Job Design and Performance 141

Job Design and Quality of Work Life 143 A General Model of Job Design 143 Job Performance Outcomes 144

Objective Outcomes 144 Behavior al Outcomes 144 Intrinsic and Extrinsic Outcomes 144 Job Satisfaction Outcomes 145

Job Design: Range, Depth, and Relationships 147 Range and Depth 147

Job Relationships 148 The Way People Perceive Their Jobs 149

Job Characteristics 150 Individual Differences 150 Social Setting Differences 150

Increasing Range in Jobs: Job Rotation and Job Enlargement 151

Job Rotation 151 Job Enlargement 151

Increasing Depth in Jobs: Job Enrichment 153 Self-Managed Teams 156 Alternative Work Arrangements 156

Total Quality Management and Job Design 160 Summary of Key Points 162 Review and Discussion Questions 163 Exercise 164 Case 166

Chapter 7 Evaluation and Rewards Influence Behavior 169

Evaluation of Performance 170 Purposes of Evaluation 170 Focus of Evaluation 172 Improving Evaluations 172

Performance Evaluation Feedback 173 Purpose of Evaluation Feedback 174 A Feedback Model 174 Multisource Feedback: A 360-Degree Approach 175

Reinforcement Theory 177 Reinforcement 177 Punishment 177 Extinction 178 Reinforcement Schedules 178

A Model of Individual Rewards 179 Intrinsic and Extrinsic Rewards 181 Rewards Interact 184 Administering Rewards 185

Rewards Affect Important Organizational Outcomes 187

Turnover and Absenteeism 187 Job Performance 188 Organizational Commitment 188

Innovative Reward Systems 188 Skill-Based Pay 189 Broadbanding 189 Concierge Services 191

Contents ix

Team-Based Rewards 191 Part-Time Benefits 192 Gain-Sharing 193 Employee Stock Ownership Plans 194 Line of Sight: The Key Issue 194

Summary of Key Points 195 Review and Discussion Questions 197 Exercises 197 Case 201

Chapter 8 Managing Misbehavior 205

The Management of Misbehavior 205 The Emerging Study of Misbehavior 207

Antecedents 207 Mediators 207 Outcomes 209 Costs 209 Management Interventions 209

Selected Misbehaviors 210 Sexual Harassment 210 Aggression and Violence 212 Bullying 214 Incivility 215 Fraud 216 Substance Abuse at Work 218 Cyberslacking 219 Sabotage 220 Theft 221

Privacy 224 E-Mail Privacy 224 The Organizational Threshold 225 Testing Policy 225

Summary of Key Points 226 Review and Discussion Questions 227 Case 227

Chapter 9 Managing Individual Stress 231

What Is Stress? 232 Stress Model 234 Work Stressors: Individual, Group, and Organizational 236

Individual Stressors 236 Group, Organizational, and Nonwork Stressors 238 Cognitive Appraisal 240 Coping with Stress 241

Stress Outcomes 241 Individual Outcomes 242 Organizational Consequences 246

Stress Moderators 246 Personality 247 Type A Behavior Pattern 247 Social Support 248

Managing Stress: Individual and Organizational Approaches 249

Maximizing Person–Environment Fit 250 Organizational Stress Prevention and Management Programs 252

Summary of Key Points 258 Review and Discussion Questions 259 Exercise 259 Case 262

PART THREE GROUP BEHAVIOR AND INTERPERSONAL INFLUENCE 265

Chapter 10 Groups and Teams 267

The Nature of Groups 26 9 Types of Groups 270

Formal Groups 271 Informal Groups 271

Why People Form Groups 272 Stages of Group Development 273

Forming 273 Storming 274 Norming 274 Performing 274 Adjourning 275

Characteristics of Groups 275 Composition 275 Status Hierarchy 276 Roles 276 Norms 277 Leadership 279 Cohesiveness 279

Group Effectiveness 283 Teams 284

Types of Teams 284 Team Effectiveness 288

Summary of Key Points 291 Review and Discussion Questions 292

x Contents

Exercises 294 Case 299

Chapter 11 Managing Conflict and Negotiations 303

A Contemporary Perspective on Intergroup Conflict 304

Functional Conflict 305 Dysfunctional Conflict 305 Conflict and Organizational Performance 306

What Causes Intergroup Conflict? 306 Work Interdependence 306 Goal Differences 308 Perceptual Differences 308

The Consequences of Dysfunctional Intergroup Conflict 309

Changes within Groups 309 Changes between Groups 310

Managing Intergroup Conflict through Resolution 311

Dominating 312 Accommodating 312 Problem Solving 314 Avoiding 314 Compromising 314

Stimulating Constructive Intergroup Conflict 316 Bringing Outside Individuals into the Group 317 Altering the Organization’s Structure 317 Stimulating Competition 318 Using Programmed Conflict 318

Negotiations 318 Win–Lose Negotiating 319 Win–Win Negotiating 320

Negotiation Tactics 321 Increasing Negotiation Effectiveness 321

Using Third-Party Negotiations 322 Team Building 323 Negotiating Globally 324 Improving Negotiations 324

Summary of Key Points 326 Review and Discussion Questions 327 Exercises 329 Case 332

Chapter 12 Power and Politics 335

The Concept of Power 335 Where Does Power Come From? 337

Interpersonal Power 337 Structural Power 339

Empowerment 342 Subunit or Interdepartmental Power 344

Coping with Uncertainty 345 Centrality 346 Substitutability 346

Obedience and the Illusion of Power 347 Political Strategies and Tactics 349

Research on Politics 349 Game Playing 350 Political Influence Tactics 350 Impression Management 352

Ethics, Power, and Politics 353 Using Power to Manage Effectively 354 Summary of Key Points 357 Review and Discussion Questions 358 Exercises 360 Case 362

PART FOUR ORGANIZATIONAL PROCESSES 365

Chapter 13 Communicating Effectively 367

The Communication Process 369 The Elements of Communication 370 Nonverbal Messages 372

Communicating within Organizations 373 Downward Communication 373 Upward Communication 373 Horizontal Communication 374 Diagonal Communication 374 Communicating Externally 374

Information Richness 376 Technology and Communication 377

Internet/Intranet/Extranet 377 Electronic Mail, Messaging, and Social Networking 377 Smartphones 379 Voice Mail 379 Videoconferencing, Teleconferencing, and e-Meetings/Collaboration 380

Interpersonal Communication 380 Multicultural Communication 381

Words 381 Space 382 Time 382

Contents xi

Barriers to Effective Communication 383 Frame of Reference 384 Selective Listening 384 Value Judgments 385 Source Credibility 385 Filtering 385 In-Group Language 386 Status Differences 386 Time Pressures 386 Communication Overload 387

Improving Communication in Organizations 387 Following Up 388 Regulating Information Flow 388 Face-to-Face Communication 388 Empathy 388 Repetition 389 Encouraging Mutual Trust 389 Effective Timing 390 Simplifying Language 390 Using the Grapevine 390 Ethical Communication 390

Summary of Key Points 392 Review and Discussion Questions 394 Exercise 394 Case 396

Chapter 14 Decision Making 401

Types of Decisions 402 A Rational Decision-Making Process 404

Establish Goals and Measur e Results 404 Identify and Analyze the Problem(s) 405 Develop Alternative Solutions 406 Evaluat e Alternative Solutions 407 Select the Best Solution 408 Implement the Decision 408 Follow Up and Evaluate the Decision 409

Alternatives to Rational Decision Making 409 Administrative Decision Making 409 Intuitive Decision Making 410

Behavioral Influences on Decision Making 410 Values 411 Risk Orientation 413 Dissonance 414 Escalation of Commitment 415

Group Decision Making 417 Individual versus Group Decision Making 417 Creativity in Group Decision Making 418 Techniques for Stimulating Group Creativity 419

Summary of Key Points 423 Review and Discussion Questions 424 Exercises 425 Case 430

Chapter 15 Leadership 433

What Is Leadership? 433 Is Leadership Important? 435

Trait Approaches : Leaders Are Born That Way 436

Intelligence 437 Personality 437 Physical Characteristics 437 Supervisory Ability 438

Behavioral Approaches : Leaders’ Actions Determine Their Effectiveness 438

Job-Centered and Employee-Centered Leadership 439 Initiating Structure and Consideration 439 Critique of Trait and Behavioral Approaches 440

Situational Approaches : Leaders’ Effectiveness Depends on the Situation 440

Fiedler’s Contingency Leadership Model 441 Vroom- Jago Leadership Model 442 Path–Goal Leadership Model 445 Hersey -Blanchard Situational Leadership Theory 447

Emerging Perspectives of Leadership 450 Charismatic Leadership 450 Transactional and Transformational Leadership 453 Coaching 456 Servant Leadership 457

Multicultural Leadership 458 Cross-Cultural Research 459

Summary of Key Points 460 Review and Discussion Questions 461 Exercises 463 Case 466

PART FIVE ORGANIZATIONAL DESIGN, CHANGE, AND INNOVATION 471

Chapter 16 Organizational Structure and Design 473

Organizational Design Models 474 The Mechanistic Model 474 The Organic Model 476

xii Contents

Designing an Organizational Structure 478 Division of Labor 480 Delegation of Authority 481 Departmental Bases 482 The Matrix Model 486 Span of Control 488

Designing an Organizational Structure: Additional Issues to Consider 490

Formalization 490 Centralization 490 Complexity 491

Multinational Structure and Design 492 Virtual Organizations 494

The Realities of Virtual Organizations 496 Boundaryless Organizations 497

Summary of Key Points 498 Review and Discussion Questions 500 Exercise 500 Case 502

Chapter 17 Managing Organizational Change 505

A General Model of Organizational Change 506 Change Agents: Forms of Intervention 508

External Change Agents 508 Internal Change Agents 508 External–Internal Change Agents 509

Resistance to Change 510 Individual Resistance 510 Organizational Resistance 511 Strategies for Overcoming Resistance to Change 512

A Model of Organizational Change and Development 513

Forces for Change 514 Diagnosis of a Problem 516 Selection of Appropriate Methods 517 Impediments and Limiting Conditions 527 Implementing the Method 528 Evaluating Program Effectiveness 529

How Effective Are Change Interventions? 530 Summary of Key Points 531 Review and Discussion Questions 532 Exercise 533 Case 535

Appendix A: Quantitative and Qualitative Research Techniques for Studying Organiz a tional Behavior and Management Practice 537

Glossary 547

Endnotes 559

Indexes 611

xiii

Preface Revising and updating this textbook is always an exciting and challenging job. In completing this tenth 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 previous 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 dedi- cated 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 tenth edition of O r ganizational Behavior and Manag e ment 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 ex- panded the theory, research, and applications of the subject matter in the revision of the book. The tenth edition of O r ganizational Behavior and Management differs from the previous editions in these ways:

1. Over a hundred domestic and global organizational examples have been added to help students relate theory and research to actual organizations and current events. Here is a sample of the real-world organizations and events that we added to this revision: Space-X, Tumblr, United Parcel Service, Zynga, Apple, Whole Foods Market, YouTube, Marriott International, Perfetti Van Melle (Italy), Foursquare, Starbucks, JPMorgan Chase, Singapore Airlines, Khan Academy, Kia Motors award winning Soul, Semco (Brazil), European economic crisis, Renren (China), IDEO, Harpo Productions, Facebook, Subway, Zachary’s Chicago Pizza, Glass- door.com, Wipro (India), USAA Financial Services, Denny’s Restaurants, and Electrolux (Sweden).

xiv Preface

2. Expanded coverage of topics that is relevant to managers today, including: Fastest- growing service jobs in the U.S., personal use of social media at work, cloud and mobile computing, W.L. Gore’s organic organizational structure, Harvard students sign an MBA oath, Nooglers learn the culture at Google, “Laughter-Yoga” at Zap- pos, self-managed and virtual teams, job sharing at Ford Motor Company, Patago- nia’s core values and environmentally driven mission, San Francisco Giants’ first-ever professional sports employee assistance program, Gen Y creates a more open and flexible workplace, PricewaterhouseCoopers’ stress survival-training pro- gram, Michael Phelps’s 22 medals at the Olympics in London; SAP’s use of a skunk- works team of university students, the San Diego Zoo and Safari Park employee incentive program, Arab spring protests, Deloitte LLP’s policy to allow its 45,000 em- ployees to telecommute up to five days per week, Wegman’s Food Market’s “eat well, live well” program, Virgin Atlantic fires 13 crew members for posting negative com- ments on Facebook, evolving influence of the BRIC nations, and Kaiser Permanente reports that 28,000 employees are using IdeaBook (its internal social networking site).

3. Fundamental themes were woven throughout the book, including globalization, managing diversity and demographic changes, technological changes, total quality, and ethics and social responsibility. These themes are consistent with the recommen- dations for balanced subject matter coverage made by the American Assembly of Collegiate Schools of Business/International Association for Management Educa- tion. This internationally acclaimed accrediting body establishes the boundaries for appropriate topic coverage.

4. Several of the end-of-chapter cases have been replaced or revised. New cases have replaced some of the previously used cases. A sample of the new cases includes: Case 2.1 “Organizational Culture Can Help Reduce Burnout in Hospitals”; Case 4.1 “The Human Cost Associated with Our Electronic Gadgets”; Case 8.1 “The (Mis)Behav- ior of Successful CEOs Leads to Their Departures”; Case 9.1 “Alleviating Em- ployee Stress Through Financial Education”; Case 14.1 “The Netflix Decision that Could Cost the Company 800,000 Subscribers”; and Case 16.1 “Will Fiat Be Successful in the United States This Time?”

5. Many of the book’s elements—Reality Check, Global OB, OB Matters (formerly Organizational Encounter), You Be the Judge, and Information You Can Use (for- merly Management Pointers)—have been updated or replaced with current exam- ples and issues relevant to managers. The elements included in the final array were considered to be relevant, teachable, and complete.

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 discussed or displayed.

Reading the tenth edition of Organizational Behavior and Management, students become involved participants in learning about behavior and management within work settings. We have designed the book with instructional flexibility in mind. The book combines 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 organizational 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, inter- pret, and predict behavior. The tenth edition of the text devotes considerable attention to encouraging the development of these probing and diagnostic skills. The first step in

Preface xv

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 competitor) is be- having 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 elements 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.

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,” intro- duces the field of organizational behavior and explores the how, what, why, and when of organizational behavior as viewed and practiced by managers. Chapter 2, “National and Organizational Culture,” covers such issues as internal culture, cul- tural diversity, and cross-cultural research.

Part Two: Understanding and Managing Individual Behavior These seven chapters focus on the individual, including topics such as “Individual Dif- ferences at Work” (Chapter 3), “Perceptions and Attributions” (Chapter 4), “Motiva- tion” (Chapter 5), “Job Design and Performance (Chapter 6), “Evaluation and Rewards Influence Behavior (Chapter 7), “Managing Misbehavior” (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 Tenth Edition

The new “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.

xvi Preface

Second, 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 associ- ated with and illustrates the chapter’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.

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

Fourth, managing diversity in the workplace is presented and discussed through the text.

Fifth, ethical behavior and social corporate responsibility are topics of major con- cern throughout the world, especially in the wake of recent U.S. scandals. Examples, incidents, and debates that present ethical dilemmas are integrated into the book.

Sixth, the text emphasizes realism and relevance. Hundreds of real-world examples of decisions, business situations, problem solving, successes, and failures are pre- sented. 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 ex- plain the concepts, frameworks, and studies presented in the text. It was not our inten- tion to be an encyclopedia 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 pedan- tic and boring. Comments on previous editions of this text suggest that Organizational Behavior and Manag e ment is readable 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 pro- grams. 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, di- lemma, or issue and require the student to make a decision and solve the dilemma,

Preface xvii

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 exer- cises. 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 communication abilities. In addition, a number of exercises apply theories and principles from the text in group activities. Working in groups is a part of organiza- tional life, so these exercises introduce a touch of reality. Group interaction can gener- ate debates, lively discussions, testing of personal ideas, and sharing of information.

Furthermore, the exercises are designed to involve the instructor in the learning pro- cess. Student participation allows for trying out techniques and patterns of behavior and integrating exercise materials with the text. None of the exercises requires advance prep- aration 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- economy 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 organizational settings and dynamics. The cases, like the real world, do not have one “right” solution. Instead, each case challenges students to analyze the com- plexity 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 manage- ment 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 an-

swered, and make sure your solution is efficient, feasible, ethical, legally defen- sible, and can be defended in classroom debate.

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

An important part of any course is vocabulary building. Thus, the book provides a thorough glossary of key terms at the end of the book. Before a quiz or test, students can use the glossary to pick out terms that they will be expected to know and use.

xviii Preface

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

Supplementary Materials

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

McGraw-Hill Internet Support Site → www.mhhe.com/ivancevichob10e The Organizational Behavior and Management website provides supplemental support materials for instructors and students. Instructor materials include the instructor’s manual, PowerPoint slides, test bank, and Asset Gallery. Student materials include practice quizzes and chapter review mat e rial, as well as the Student Asset Gallery available as premium content.

The Instructor’s Manual is organized to follow each chapter in the text. It includes chapter 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 tenth edition of the text. This testing resource contains approximately 100 true/false, multiple choice, and essay questions per chapter. Each question is classified according to level of difficulty and contains a reference to the question’s accompanying learning objective.

Video DVDs The Organizational Behavior Video DVDs Volumes 1 and 2 offer a selection of videos illustrating various key concepts from the book and exploring current trends in today’s workplace.

Contributors The authors wish to acknowledge the many scholars, managers, reviewers, and re- searchers who contributed to every edition of Organizational Beha v ior and Manage- ment. In particular, we would like to thank the following reviewers of the Ninth Edition, whose valuable feedback helped guide this revision of the book: Minnette A. Bumpus, University of the District of Columbia; Donald Brian McNatt, Boise State University; Carl J. Taylor, University of Houston at Clear Lake; and Marcia Wilkof, University of Pennsylvania and Thomas Jefferson University. We are in- debted to those individuals who granted permission for the use of exercises and cases. In addition, adopters of former editions have made invaluable suggestions, of- fered 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, associate professor and chair of the Department of Business Ad- ministration and Economics at Greensboro College, contributed significantly by writing

some of the new cases in the current edition. Also, he updated and revised the Instruc- tor’s Manual that accompanies this book.

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 col- leagues have shared and put into practice a common belief that teaching and learning about organizational behavior and management can be an exhilarating and worth- while experience. Roger Blakeney, Dick DeFrank, Bob Keller, Tim McMahon, Dale Rude, and Jim Phillips, all at the University of Houston; Dave Schweiger at the Uni- versity 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.

John M. Ivanc e vich

Robert Konopaske

Michael T. Matteson

Preface xix

P A R T O N E

The Field of Organizational Behavior

1. EFFECTIVE MANAGERS UNDERSTAND ORGANIZATIONAL BEHAVIOR

2. NATIONAL 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)

3

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.

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 12 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 purchased 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 principles. He understands how to in- spire and motivate individuals, both employees as well as customers. 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 businesses 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 com- pany, post questions to the “Ask Anything” newsletter, make suggestions to improve how things get done, and contribute to Zappos’s fun and sometimes zany work envi- ronment. Employees have been known to volunteer to shave their heads (in a mullet

C H A P T E R O N E

4

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

Employees aren’t the only stakeholders who benefit from Hsieh’s progressive style of management. Customers are spoiled when they call Zappos’s customer ser- vice 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 customers free shipping both ways, send flowers and sur- prise 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 of- ficer 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.

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

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

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 impor- tance 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 reluc- tant 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, any- thing is possible. With the wrong one, change efforts and new programs become gim- micks, and no amount of consultations, 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 competen- cies. 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 lan- guage ability, an international business perspective, and a strong knowledge of tech- nology and the law will also help. Since change is so widespread and constant, managers will have to be entrepreneurial. The core qualities needed to create the ideal work atmosphere begin with intelligence, passion, a strong work ethic, a team orienta- tion, and a genuine concern for people. 8 The OB Matters discusses further some major drivers of change that modern day managers must address to be effective.

The Evolution of Management

The formal and modern study of management started around 1900. 9 However, the management 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 governments, planning military maneuvers, operating trad- ing companies that traversed the world, and controlling a geographically dispersed empire. However, management as a process 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 Rev- olution in England that lasted between 1700 and 1785. 10 As a nation, England changed dramatically 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 ad- dition, 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. The management curriculum at that time covered such topics as strikes, business law, the nature of stocks and bonds, and principles of work cooperation.

Scientific Management In 1886, an engineer named Frederick W. Taylor presented a paper titled “The Engi- neer as an Economist” at a national meeting of engineers. This paper and others pre- pared by Taylor expressed his philosophy of scientific management . 12 Taylor’s major thesis was that maximum good for society can come only through the cooperation of

scientific management A body of literature that emerged during the period 1890–1930 that reports the ideas and theories of engi- neers concerned with such problems as job definition, incentive systems, and selection and training.

6

TODAY’S EFFECTIVE MANAGER Managers must be agile and flexible to help their firms develop and sustain an advantage in an increasingly competitive global- ized world. They will need to harness the powers of information technology and human capital to be successful.

The competitive forces facing managers are led by 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., Brazil, Russia, India, and China), and new economic alliances and rules.

A good way to acquire a perspective on how fast environmen- tal and competitive forces change is to examine the video rental industry. Until recently, large bricks and mortar firms like Block- buster and Hollywood video stores dominated the industry. Cus- tomers would drive to their local store, rent a video, take it home, watch it, and then drive 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. This allowed customers to watch many more movies each month without having to drive to a store to rent movies. Netflix went a step further and created an online streaming service that it thinks will eventually replace the mail exchange service. Competition in the video rental industry continues to grow more intense with Redbox (video rental boxes outside restaurants, supermarkets, and pharmacies), Hulu Plus (stream TV shows), Google (stream on Android devices that run version 2.2 and up), and Apple TV (stream movies from iTunes Media Store on Apple’s mobile devices and televisions).

As seen with video rentals, markets can change quickly. Mergers, acquisitions, and start-ups are changing how domestic and global markets operate. Strategic alliances have been

formed in many industries. The key to competing globally is human capital. To attract, retain, and develop human capital, organizations will have to make available continuous learning. Organizations must identify knowledge, transfer it to emplo- yees, and update it continuously. Knowledge is required on the job, working in teams, interacting with external stakeholders (e.g., suppliers), and tapping competitors. For example, Walmart managers systematically shop at competitors’ stores to examine how they operate, how products and services are delivered, and how they are marketed.

Knowledge sharing is another important aspect of remaining competitive. Ericsson, a Swedish electronics firm, encourages knowledge sharing through information technology. Ericsson em- ployees and their families have free Internet access. An internal website focuses on competence development. Discussion groups, chat rooms, and specialty forums are used by many em- ployees to create communities of practice (e.g., informed groups bound together by shared expertise, interest, and values for a concept, idea, or activity).

Sources : Adapted from A. D. Pruitt and Richard Autry, “Video Stores Test Script for Survival,” The Wall Street Journal , July 12, 2011, p. A.17; Mike Isaac, “8 Netflix Alternatives Compared,” September 21, 2011, http:// www.cnn.com; Stefan Stern, “Your Attention, Please, I Need You to Focus on This Now,” Financial Times , January 6, 2009; Thomas H. Davenport and Laurence Prusak, What ’ s the Big Idea? Creating and Capitalizing on the Best Management Thinking (Boston: Harvard Business School Press, 2003); T. Hellstrom, “Knowledge and Competence Management at Ericsson: Decentralization and Organizational Fit,” Journal of Knowledge Management , 2000, pp. 4–10; and Michael A. Hitt, “The New Frontier: Transformation of Management for the New Millennium,” Organizational Dynamics 28 (Winter 2000), pp. 7–16.

O B M A T T E R S

Chapter 1 Effective Managers Understand Organizational Behavior 7

management and labor in the application of scientific methods. He stated that the principles of management were to:

• Develop a science for each element of an employee’s work, which replaces the old rule-of-thumb method.

• Scientifically select and then train, teach, and develop the worker, whereas in the past a worker chose the work to do and was self-trained.

• Heartily cooperate with each other to ensure that all work was done in accordance with the principles of science.

• Strive for an almost equal division of work and responsibility between manage- ment and nonmanagers.

These four principles constituted Taylor’s concept of scientific management. Some regard him as the father of modern management. Regardless of the amount of credit he deserves, Taylor was a key figure in elevating the role of management in organiza- tions. He has had a lasting impact on a unified, coherent way to improve the way managers perform their jobs.

Administrative Management Henri Fayol, a French industrialist, presented what is considered the first comprehen- sive statement of a general theory of management. First published in France in 1916, 13 Fayol’s Administration Industrielle et Générale was largely ignored in the United States until it was translated into English in 1949.

Fayol attributed his success in turning around and managing a large mining firm to his system of management, which he believed could be taught and learned. He emphasized the importance of carefully practicing efficient planning, organizing, commanding, coordinating, and controlling. These five pillars of management (the modern term “leading” has replaced the term “commanding”) are frequently used as the foundation for most introductory management and organizational behavior textbooks.

Fayol’s approach was a significant contribution in that it presented three important developments that have had a lasting impact on the field.

1. Management is a separate body of knowledge that can be applied in any type of organization.

2. A theory of management can be learned and taught. 3. There is a need for teaching management in colleges.

Why Study Organizational Behavior?

Why do employees behave as they do in organizations? Why is one individual or group more productive than another? Why do managers continually seek more effective ways to design jobs and delegate authority? Why are some organizations (e.g., Netflix) more innovative than others (e.g., Blockbuster)? These and similar questions are important to the relatively new field of study known as organizational behavior . Understanding the behavior of people in organizations—productivity, teamwork, work-life balance, job stress, and career progression—are top concerns of all managers and leaders. Peo- ple make the difference.

organizational behavior Drawing on psychol- ogy, sociology, political science, and cultural an- thropology, OB is the study of the impact that individuals, groups, and organizational structure and processes have on behavior within organizations.

8 Part One The Field of Organizational Behavior

Based on the fact that organizational behavior (OB) has evolved from multiple dis- ciplines, we will use the following definition of OB throughout this book:

Drawing on psychology, sociology, political science, and cultural anthropology, OB is the study of the impact that individuals, groups, and organizational structure and processes have on behavior within organizations.

This multidisciplinary view of organizational behavior illustrates a number of points. First, OB is a way of thinking . Behavior is viewed as operating at individual, group, and organizational levels. This approach suggests that when studying OB, we must identify clearly the level of analysis being used—individual, group, and/or orga- nizational. Second, OB is multidisciplinary . This means that it utilizes principles, mod- els, theories, and methods from other disciplines. The study of OB is not a discipline or a generally accepted science with an established theoretical foundation. It is a field that only now is beginning to grow and develop in stature and impact. Third, there is a distinctly humanistic orientation within organizational behavior . People and their atti- tudes, perceptions, learning capacities, feelings, and goals are of major importance to the organization. Fourth, the field of OB is performance-oriented . Why is performance low or high? How can efficiency and effectiveness be enhanced? Can training increase on-the-job performance? Practicing managers face these important issues. Fifth, the scientific method is used to study OB variables and relationships . As the scientific method has been used in conducting research on organizational behavior, a set of principles and guidelines on what constitutes good research has emerged. 14 Finally, the field is ap- plication oriented. It is concerned with providing useful answers to questions that arise in the context of managing organizations. 15

Exhibit 1.1 offers a framework and overview of the multiple disciplines that have contributed to the study of OB and the application of OB principles in organizational settings.

Leaders and Organizational Behavior Changes occurring within and outside of institutions present major challenges to leaders, managers, and administrators in organizations. Terms such as social responsi- bility, cultural diversity, ethics, global competitiveness, social networking, and reengi- neering are used freely by experts and nonexperts. Each of these concepts reinforces the fact that leaders are being asked to perform effectively in a changing world.

Another challenge that leaders face is the increased emphasis that consumers are placing on value. 16 The trend among consumers is to consider the total value of a product or service. Today, more than ever, customers expect organizations to be re- sponsive to their needs, to provide prompt service and delivery, and to produce top quality goods or services at the best price possible.