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Angelo Kinicki

Behavior Organizational

A Practical, Problem-Solving Approach

3e

Angelo Kinicki Arizona State University

Kent State University

Organizational Behavior

A Practical, Problem-Solving Approach

Third Edition

ORGANIZATIONAL BEHAVIOR: A PRACTICAL, PROBLEM-SOLVING APPROACH, THIRD EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2021 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2018 and 2016. 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 McGraw-Hill Education, 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.

This book is printed on acid-free paper.

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ISBN 978-1-260-07507-6 (bound edition) MHID 1-260-07507-9 (bound edition) ISBN 978-1-260-51625-8 (loose-leaf edition) MHID 1-260-51625-3 (loose-leaf edition)

Executive Portfolio Manager: Michael Ablassmeir Lead Product Developer: Kelly Delso Product Developer: Anne Ehrenworth Executive Marketing Manager: Debbie Clare Content Project Managers: Harvey Yep (Core) / Keri Johnson (Assessment) Buyer: Susan K. Culbertson Design: Matt Diamond Content Licensing Specialist: Carrie Burger Cover Image: © malerapaso/Getty Images Compositor: Aptara®, Inc.

All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Control Number: 2019920084

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

mheducation.com/highered

DEDICATION To the thousands of students I encountered during my career. Thank you for making me a better teacher and writer.

— Angelo

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ho r nizational performance. Angelo has published over 95 articles in a variety of academic journals

and proceedings and is co-author of eight text- books (32 including revisions) that are used by hundreds of universities around the world. Several of his books have been translated into multiple languages, and two of his books were awarded revisions of the year by McGraw-Hill. Angelo also was identified as being among the top 100 most influential (top .6%) Organizational Behavior authors in 2018 out of a total of 16,289 academics.

Angelo is a busy international consultant and is a principal at Kinicki and Associates, Inc., a management consulting firm that works with top management teams to create organizational change aimed at increasing organizational effec- tiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse indus- tries. His expertise includes facilitating strategic/ operational planning sessions, diagnosing the causes of organizational and work-unit problems, conducting organizational culture interventions, implementing performance management sys- tems, designing and implementing performance appraisal systems, developing and administering surveys to assess employee attitudes, and lead- ing management/executive education programs. He developed a 3600 leadership feedback instrument called the Performance Management Leadership Survey (PMLS) that is used by com- panies throughout the world.

Angelo and his wife of 37 years, Joyce, have enjoyed living in the beautiful Arizona desert for 36 years. They are both natives of Cleveland, Ohio. They enjoy traveling, hiking, and spending time in the White Mountains with Gracie, their adorable golden retriever. Angelo also has a pas- sion for golfing.

Angelo Kinicki is an emeritus professor of management and held the Weatherup/Overby Chair in Leadership from 2005 to 2015 at the W.P. Carey School of Business at Arizona State University. He joined the faculty in 1982, the year he received his doctorate in business administration from Kent State University. He was inducted into the W.P. Carey Faculty Hall of Fame in 2016. Angelo currently is the Dean’s Scholar in Residence at Kent State University. He is teaching in the MBA program and serves on the Dean’s National Advisory Board.

Angelo is the recipient of six teaching awards from Arizona State University, where he taught in its nationally ranked MBA and PhD programs. He also received several research awards and was selected to serve on the editorial review boards for four scholarly journals. His current research interests focus on the dynamic relationships among leadership; organizational culture; organi- zational change; and individual, group, and orga-

Courtesy of Angelo Kinicki

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nwe have included a variety of new exercises to our already robust Connect offering:• Problem-Solving Application Case Analyses: All problem-solving application mini-cases and end-of-chapter cases are now assignable as case analyses in Connect. These exercises give students the opportunity to analyze a situation and to apply the 3-Step Problem- Solving Approach. Student knowledge and proficiency are assessed using high-level multiple-choice questions that focus on both the problem-solving approach and on the key topics of each chapter.

• Application-Based Activities: Students can gain valuable practice using problem- solving skills to apply their knowledge to realistic scenarios. Included in this edition are two types of Application-Based Activities: Role-Playing mini-simulations that allow students to make decisions and see, in real time, the impact of those decisions; and Self-Assessments, which are research-based surveys that students can take to gain fur- ther introspection into how organizational behavioral concepts apply to them.

• Cumulative Case: This capstone activity provides students the opportunity to apply the 3-Step Problem-Solving Approach on an actual situation affecting a specific firm (Tesla). Because the case examines issues at the individual, group, and organizational levels of analysis at Tesla, it can be used in parts or as a comprehensive assignment or exam. All told, this activity presents stu- dents with a rich and practical example to apply their OB knowledge and problem- solving skills.

• iSeeIt Videos: Brief, contemporary intro- ductions to key course concepts that often perplex students, this series will enhance your student-centered instruction by offer- ing your students dynamic illustrations that guide them through the basics of core OB concepts such as motivation, leadership, socialization, and more.

• Manager’s Hot Seat Videos: These vignettes allow students to assume the role of a man- ager as they immerse themselves in real-life situations. Students see how managers deal with employees and complex issues, and use critical-thinking skills in defining their approach and course of action--while learning from the manager’s mistakes.

We are pleased to share these exciting updates and new additions to the third edition of Organizational Behavior!

Features In this new edition, we have better integrated the 3-Step Problem-Solving Approach through- out, and clarified its relationship to the Orga- nizing Framework for Understanding and Applying OB. In addition:

• Winning at Work boxes at the beginning of every chapter offer career-readiness guid- ance for students on a variety of timely, pertinent topics.

• OB in Action boxes illustrate OB concepts or theories in action in the real world, featuring well-known companies and individuals.

• Applying OB boxes offer students “how-to” guidance on applying OB knowledge in their lives. The importance of career readiness is stressed in many of these boxes throughout the book, indicated with a “Career Readiness” label.

• Problem-Solving Application boxes provide a minicase for students to analyze, using the 3-Step Problem-Solving Approach.

• Takeaways for Me and Takeaways for Managers conclude each chapter, explaining in direct terms practical appli- cations of the chapter content from the student’s perspective as an employee and a manager.

• Problem-Solving Application Cases at the end of each chapter provide a complex and current case with one or more problems that pertain to concepts discussed in the chapter.

• Legal/Ethical Challenges provide a conclud- ing exercise in each chapter and ask stu- dents to choose from several courses of action or invent their own to resolve a business situation involving ethics at work.

Connect In our continuing efforts to help students move from comprehension to application, and to ensure they see the personal relevance of OB,

vi NEW TO THE THIRD EDITION

Chapters In each chapter we have refreshed examples, research, figures, tables, statistics, and photos, as well as streamlined design to ease navigation and improve readability. We have also largely replaced the topics in such popular features as Winning at Work, Legal/Ethical Challenges, Problem-Solving Application mini cases, and Problem-Solving Application Cases. New in this edition, each chapter concludes with a sec- tion entitled “Making Connections,” in which we provide a list of specific applications of chapter content for students and managers. Beyond these valuable changes, the following outlines some of the more notable changes by chapter.

CHAPTER 1 • New content on the implications of OB for

students’ jobs and careers.

• Expanded and enhanced section on ethics, including expanded treatment on the preva- lence of cheating and other forms of unethi- cal conduct at school and work; revised and further developed section on ethical dilem- mas and whistleblowers; revised and enhanced content on the importance of soft versus hard skills; expanded explanation of the importance of self-awareness for personal development and job and career success.

• Updated survey results outlining skills most sought by employers.

• New Winning at Work feature provides insight and guidance on how to deal with challenges in the hiring process, including the growing role of artificial intelligence and how to effectively get past these virtual gatekeepers.

• New Applying OB feature on how self- awareness can help one build a fulfilling career.

• Updated and refined the 3-Step Approach to Solving Problems Using OB.

CHAPTER 2 • New content on the factors that shape the

values of Generation Z; increasing employee commitment, with best practices used by Hilton, Salesforce, and Cisco.

• New examples clarify content about Schwartz’s value theory and explain cognitive dissonance.

• Updated statistics on employee engagement around the world; new data on employee

satisfaction in the U.S.; new statistics on telecommuting; new research on accounting/ financial performance and customer service/satisfaction as outcomes of job satisfaction.

• New Winning at Work feature on creating your own sense of employee engagement.

• New Problem-Solving Application features on McDonald’s workers protesting sexual harassment at work; Netflix’s approach to sexual harassment in the workplace.

• New OB in Action feature on how compa- nies foster employee engagement.

• New Applying OB features on ways to implement telecommuting for employees; using job satisfaction to reduce employee turnover.

• New end-of-chapter Problem-Solving Application Case on Walmart’s values under scrutiny.

CHAPTER 3 • New section on the dark side of personal-

ity, the dark triad: narcissism, psychopathy, and Machiavellianism; new coverage of emotional intelligence, including the most recent research and ways in which to develop one’s EI; new content on the potential and actual success of introverts in the workplace; new content on how to manage emotions during the job search process.

• Expanded section on brain training, using current research findings and applications; streamlined treatment of multiple intelli- gences with new, compelling examples; updated and streamlined material related to core self-evaluations.

• Updated research and practical implications of intelligences, linking Big 5 personality dimensions to performance.

• New Winning at Work feature illustrating the career implications of OB, with guidance on which interview questions students should be prepared to answer and ask.

• New Applying OB features on what to look for in a manager; managing emotions during the job search.

• New OB in Action features on intelligence testing; one of the richest self-made women in America (who also epitomizes self- efficacy).

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research and examples on job design, job crafting, and i-deals.

• New Winning at Work feature on how to negotiate for a pay raise at work.

• New Problem-Solving Applications about employee benefits at Walmart; symphony orchestra members going on strike.

• New OB in Action feature about job swap- ping and job rotation opportunities.

• New end-of-chapter Problem-Solving Appli- cation Case on why Amazon workers are not feeling motivated.

• New Legal/Ethical Challenge about whether Sears executives should receive bonuses while taking the company through bankruptcy.

CHAPTER 6 • New content on the primary outputs and

functions of performance management; applied goalsetting to jobs and careers; the major reasons performance manage- ment is criticized; the growing role of technology in performance management; contemporary performance management, highlighting that it is now continual and includes more coaching and ongoing feedback; how to improve performance monitoring.

• Revised Winning at Work feature on best practices for productivity.

• New Applying OB features on goal-setting; responding to negative feedback; effective coaching.

• New OB in Action features on ID checks; monitoring for performance; com- pensation.

• New Problem-Solving Application on incen- tivizing teachers in one underperforming school district.

• New end-of-chapter Problem-Solving Application Case on the consequences resulting from Wells Fargo’s use of incentives.

• New Legal/Ethical Challenge on the practice of employers’ asking about current salary.

CHAPTER 7 • New content on positive and negative

deviance; how students can increase their

• New Problem-Solving Application on Uber’s former CEO, Travis Kalanick.

• New end-of-chapter Problem-Solving Application Case on the fall of John Schnatter, founder of Papa John’s Pizza.

• New Legal/Ethical Challenge on drug testing with the recent legalization of marijuana in some states.

CHAPTER 4 • New, expanded discussion and illustration

of the four stages of social perception; new content on diversity, including new discussion of assumptions about diversity and new examples about the use of quotas when it comes to hiring practices; new example to elaborate on the self-serving bias.

• New research on how a person’s appear- ance affects our perception and their ability to get hired; updated research on stereo- types; new results of gender research; updated trends and statistics related to diversity, including the topic of pay equity for men and women and research on unwel- coming workplace environments.

• New Applying OB features on developing cultural awareness to enhance perception; the best companies for Millennial workers.

• New OB in Action features on the use of vir- tual technologies for job interviews and recruit- ment; how U.S. companies are using product design to reach a diverse customer base.

• New Problem-Solving Application about firefighters suing for age discrimination.

• Updated end-of-chapter Problem-Solving Application Case on the diversity profile of technology companies.

• New Legal/Ethical Challenge about patient requests versus employees’ civil rights.

CHAPTER 5 • New content on equity sensitivity.

• New illustrations of extrinsic and intrinsic motivation; new examples to illustrate key theories including Maslow’s theory, self- determination theory, and equity/justice theory; new examples to illustrate the concept of goal setting and the application of the job characteristics model.

• New research on employees’ opinions about performance feedback and pay; updated

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• Expanded and refined content on team effectiveness, including new material on the characteristics of high performing teams and how to use conflict to improve teamwork.

• Revised and expanded research and appli- cation related to social-loafing (how to prevent and overcome it); updated research and content on team adaptive capacity.

• New Applying OB features on cultivating cohesiveness to improve the function of groups and teams; the benefits of microinternships for both employers and students.

• New OB in Action features on how T-Mobile has changed their customer service approach by working in teams; how conflict and tension can be the key to better teams.

• New end-of-chapter Problem-Solving Application Case on the predicaments that Boeing faces with its 737 Max airliner.

CHAPTER 9 • New content on media richness; social

listening; generational differences regarding the role of digital devices and communica- tion expectations and norms; social media and OB.

• New subsection on phubbing (phone snubbing) and FOMO (fear of losing out); new discussion on nondefensive communi- cation.

• New research on media richness, managers’ use of empathy; tips on managing e-mail; statistics on social media and OB.

• New OB in Action features on communica- tion transparency at a skin-care company; how empathy is good for business; crowd- sourcing success stories at Lego and Frito- Lay.

• New Applying OB feature on how to ace a video job interview.

• New end-of-chapter Problem-Solving Application Case about United Airlines’ turbulent communications strategy.

• New Legal/Ethical Challenge on whether social media posts impact the cost of life insurance premiums.

flourishing at school; turning rejection in the job search process into positive motivation.

• Updated and expanded section on doing well and doing good, including three quali- fying criteria and further development of how this occurs across levels of OB ( individual, group, and organizational); expanded material on how to insert more positivity in one’s work; organizational cli- mate; revised material on the history and current role of positivity in OB; prosocial behaviors.

• Refined, updated, and expanded research, applications, and benefits of mindfulness at work; updated research and applications of resilience, optimism, and signature strengths at work.

• New Winning at Work feature on boosting performance with productivity.

• New Applying OB features on how managing internal responses can improve performance; boosting positivity with a fun work environ- ment; fostering positive candidate experi- ences during job interviews.

• New OB in Action features on socially- responsible investing; mindfulness at major healthcare, biotech, and industrial compa- nies; employee wellness via resistance training at a major health system; how one fast-casual health food business fosters posi- tive culture

• New Problem-Solving Application on Amazon’s acquisition of Whole Foods and reckoning of the two companies’ values.

• New end-of-chapter Problem-Solving Application Case on how aggressive mar- keting created an opioid epidemic.

• New Legal/Ethical Challenge on hiring those with criminal pasts.

CHAPTER 8 • New section differentiating groups

and teams using three characteristics: dependence, accountability, and time.

• Revised and updated content on formal and informal groups and their respective func- tions; group and team norms; types of teams, especially related to virtual team challenges and solutions; updated and expanded content on trust: what it is, why it is important, and how to repair it when damaged.

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new research on the importance of creativity and curiosity within organizations.

• New Winning at Work feature about how to practice critical thinking skills for decision making.

• New OB in Action features on improving an airport terminal under bounded rationality; how big data helps advance the health care industry; how shaking up your routine may spark creativity.

• New Problem-Solving Application on how cognitive bias was partly to blame for California’s devastating wildfires.

• New end-of-chapter Problem-Solving Application Case on Airbus’s decision to cease production of its A380 airliner.

• New Legal/Ethical Challenge on whether college students should be expelled if their parents cheated to get them into school.

CHAPTER 12 • Revised content on common influence

tactics, including current and compelling examples of students, #MeToo, and employ- ees; political tactics, highlighting the increasing activism by employees, students, and other groups; political behavior, uncer- tainty, performance, and change; the tactic of blame and levels of political action; apologies—when and how to use them effectively.

• Updated and expanded research on the five bases of power, with a focus on negative legitimate and referent power.

• New Applying OB features on social media influencers; etiquette in the hiring process; body art in the workplace.

• New OB in Action features on giving tax breaks and other incentives to billion-dollar companies; employee activism; the effects of student activism on companies and corporations.

• New end-of-chapter Problem-Solving Application Case on Nike and the MeToo Movement.

• New Legal/Ethical Challenge on companies who impose their leaders’ values on employees.

CHAPTER 10 • New section on harassment—what it is and

how to prevent it at work.

• New content on functional versus dysfunc- tional conflict: causes and outcomes; intergroup conflict material; creating the climate for psychological safety; framing negotiation as a skill, task, or even a game— with the goal of improving your attitude related to negotiation and thus improving the outcomes.

• Revised and updated content related to conflict avoidance, including reasons why people avoid conflict, how to avoid avoiding conflict, and the desired outcomes of conflict management.

• Expanded and updated sections related to work-life conflict, with a new focus on har- mony or integration of life’s; modern con- flict at work; civility at work, including its forms, prevalence, and costs; programming functional conflict and conflict handling styles; ethics and negotiations.

• New Applying OB features on how to explain your departure from one job while interviewing for another; psychological safety at Google; how to ask for a larger s alary or a raise.

• New OB in Action features on dealing with conflict; the battle between two unions involved in the creation of shows and movies.

• New Problem-Solving Application on the Fair Food Program.

• New Problem-Solving Application Case on Facebook’s struggles with protection of data and privacy.

• New Legal/Ethical Challenge on arbitration versus litigation.

CHAPTER 11 • New section on artificial intelligence and its

increasing use in decision making.

• Expanded discussion of Kahneman’s two ways of thinking; updated information on data analytic jobs and majors; new exam- ples for the four types of decision-making styles; new examples of bounded rationality, intuition, big data, analytical decision mak- ing, and creativity.

• New data on use of heuristics by physi- cians; new statistics about use of big data;

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• New Applying OB feature about key strate- gies for cultivating a network and mentor- ing relationship.

• New end-of-chapter Problem-Solving Application Case about the culture clashes at Ford Motor Company.

CHAPTER 15 • New introductory section and illustration

that provide an overview of how organiza- tional structure and innovation impact organizational effectiveness.

• Shifted discussion of assessing organiza- tional effectiveness to the end of the chapter to provide a clearer link between implementing organizational design and evaluating its effectiveness using various metrics, including the Balanced Scorecard.

• Updated examples on learning organiza- tions; the seven types of organizational structure; innovation in organizations.

• New research on the effects of open-office design on individual, group, and organiza- tional outcomes; updated research related to learning organizations and innovation in organizations.

• New Problem-Solving Applications about gig workers’ growing influence in the labor market; AMD and its struggles to innovate.

• New end-of-chapter Problem-Solving Application Case about one major book- seller and the challenges it faces to stay in business.

• Updated Legal/Ethical Challenge about universities’ tax-exempt status and the response from their local communities.

CHAPTER 16 • New section on confronting and effectively

overcoming failures at work.

• New material contrasting fatigue versus tiredness and consequences at work; the role and characteristics of change agents; tips on overcoming resistance to change.

• Revised and expanded content on forces for change; updated material on using missions to motivate change; revised content on resistance to change—its causes and how to overcome it; revised content on stress at work, including statistics, causes, and costs.

CHAPTER 13 • New section on abusive supervision and

what strategies organizations can imple- ment to eliminate such behavior.

• New content on the leadership model devel- oped by Kouzes and Posner; the four ways of creating psychological empowerment; the four behaviors demonstrated by trans- formational leaders.

• New statistics on why leadership is so important in today’s organizations; new research on leadership traits and task and relational leadership; new research about leader- member exchange model of leadership.

• New OB in Action features on how one university used task leadership to help reclaim the national college football championship; abusive leadership at a local pharmacy.

• New Problem-Solving Application on Barnes & Noble’s search for a new CEO.

• New end-of-chapter Problem-Solving Application Case on Elon Musk and his leadership behavior.

• New Legal/Ethical Challenge on whether store managers should force employees to pierce childrens’ ears against their wishes.

CHAPTER 14 • Expanded discussion of sustainability as a

key driver of organizational success.

• New examples for the three levels of organi- zational culture; the four cultural types in the competing values framework; the 12 mechanisms to change organizational culture; the three stages of socialization; the career and psychosocial functions of mentoring; how human and social capital enhance the benefits of mentoring.

• Updated research for the three stages of socialization; new illustrations on the importance of organizational culture; new examples of the career and psychosocial functions of mentoring.

• New OB in Action feature about compa- nies that demonstrate sustainability leadership.

• New Problem-Solving Application about Sprouts Farmers Market and its organiza- tional culture.

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• Streamlined and updated research and examples related to common models of change; forces for change; managing stress.

• New Winning at Work feature on relocating.

• New OB in Action features on turnover among CEOs; improving lives with shoes.

• New Applying OB features on answering behavioral interview questions; how to rant productively.

• New Problem-Solving Application on the AT&T/Time Warner merger.

• New end-of-chapter Problem-Solving Application Case on the reinvention of Toys R Us.

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“My students have embraced the problem-solving approach . . . and are excelling as a result. They tell me in their feedback that they ‘get it.’ To me, that proves success and that learning has taken place.”

David D. Mull —Columbia College of Missouri

• “I want a good job, one that I like and is fulfilling. How do I know which job and company are a good fit for me?”

• “I know that this job and company provide good opportunities for me, but what can I do to be sure I actually realize these opportunities?”

• “I can’t stand my job, but I need the money. Should I talk to my boss or just quit?”

• “I am taking a class with 50 percent of the grade due to teamwork. My team has four members and two of us are doing all the work. I’ve been talking to the team, but the two members still aren’t doing their share. I am at a loss for what to do.”

• “How do I negotiate a salary and benefits for my new job, or a raise for the one I have?”

Each of these scenarios presents a problem. We all are faced with problems every day, and our ability to solve problems can set us apart from others in our jobs and careers. In fact, surveys consistently show that problem solving is one of the skills most valued by employers. For this rea- son, we designed Organizational Behavior, 3e, to help students become more effective problem solvers. Students who are effective problem solvers today become valued leaders tomorrow.

The third edition of Organizational Behavior relies on three key strategies to help students use OB knowledge to solve problems:

• Consistent 3-Step Problem-Solving Approach. • Applied, practical features. • User-centric design.

3-Step Problem-Solving Approach Given problem solving is one of the skills most sought by employers, we help students develop instead of hone this skill. We teach them to use a 3-Step Problem-Solving Approach—(1) define the problem, (2) identify the causes, and (3) recom- mend a solution. This approach is introduced in Chapter One and used multiple times in each subsequent chapter. To complement the 3-Step Approach, we also developed the Organizing Framework for Understanding and Applying OB. This framework is used in two ways. First, it pro- vides students a means for organizing OB con- cepts into three categories (inputs, processes, and outcomes) as they learn them. This facili- tates student learning and shows how concepts relate to each other. Second, it is an important

and complementary tool for problem solving. Problems are often defined in terms of out- comes in the Organizing Framework, and the causes are commonly found in the inputs and processes elements. Students use this framework in every chapter to solve problems confronted by real organizations and employees.

We provide many opportunities for students to practice using the 3-Step Problem-Solving Approach. Problem-Solving Application mini cases are inserted throughout each chapter. These provide numerous opportunities for students to apply their OB knowledge and practice their prob- lem solving skills to real companies and people. The longer Problem-Solving Application Case at the end of each chapter presents more complex and current business cases containing one or more problems that illustrate OB concepts included in a particular chapter. A version of the Organizing Framework is presented in each chap- ter and is populated with relevant concepts from that chapter, which students use to define and solve problems presented in the various features. This capstone Cumulative Case activity provides students the opportunity to apply the 3-Step Prob- lem-Solving Approach on an actual situation affecting a specific firm (Tesla) in Connect.

We carry the 3-Step Problem-Solving Approach into Connect, McGraw-Hill’s market-leading digital platform, and provide students with numerous opportunities to observe how different decisions can lead to dif- ferent outcomes. We also offer new critical- thinking application exercises tied to the Problem-Solving Application boxes and Problem-Solving Application Cases, giving stu- dents additional practice with applying the 3-Step Approach. These activities are a

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We also present content in digestible chunks of text, with frequent opportunities to engage with or reflect on the material. The Winning at Work feature opens each chapter with a list of practical tips related to a highly relevant topic for work and/or school, such as negotiating a sal- ary for a new job or a pay raise, or how to man- age meetings more effectively. Self-Assessments in Connect allow students to evaluate personal characteristics related to OB concepts, as well as to reflect on their own characteristics and behav- ior. What Did I Learn provides students with a review of the chapter’s key concepts, an invita- tion to answer important questions relating to chapter content, and a summary of the Organiz- ing Framework for a given chapter.

Connect gives instructors the foundations for creating a course that fits their individual teach- ing needs. The Teaching Resource Manual offers a playbook for creating and delivering a discus- sion-based learning environment in which stu- dents practice and apply concepts in a more active manner. The extensively revised Test Bank offers greater opportunity to assess students on OB concepts at a higher level, with essay and scenario-based questions to engage students’ problem-solving skills. Finally, a comprehensive set of PowerPoint slides provide guidance in addressing key concepts.

Developing Effective Problem Solvers Today, Valued Leaders Tomorrow Organizational Behavior, 3e, explicitly addresses OB implications for students’ jobs and careers, showing how OB provides them with the higher- level soft skills employers seek, such as problem solving, critical thinking, leadership, and deci- sion making. We strongly believe that applying OB theories and concepts provides tremendous value to students’ lives today and throughout their careers. The understanding and application of OB enhances student effectiveness at school and work, both today and tomorrow.

com bination of case analyses, video cases, and click-and-drag exercises.

Applied, Practical Approach The third edition repeatedly demonstrates the practical value of OB concepts in solving real- world problems in students’ professional and personal lives. OB in Action boxes illustrate OB concepts or theories in action in the real world, featuring well-known companies. Applying OB boxes offer students “how-to” guidance on applying their knowledge in both their profes- sional and personal lives. Appearing at the end of each chapter are new Takeaway features that explain to students the practical value of OB concepts—one for their personal use now (Take- aways for Me) and the other for managers (Takeaways for Managers).

Legal/Ethical Challenges ask students to choose from several proposed courses of action or invent their own to resolve a business situa- tion that falls into a gray area of ethics at work.

Connect provides a multitude of opportuni- ties for active practice and application of con- cepts learned during class or while completing assigned reading. SmartBook is another key component. This adaptive and data-driven read- ing experience gives students ample opportu- nity to develop mastery of key learning objectives tied to core OB concepts, while also providing instructors real-time snapshots of stu- dent comprehension.

User-Centric Approach It is important for us to offer users, whether stu- dents or instructors, a tool that is easy to navi- gate, easy to digest, and exceptionally practical. We therefore have taken great care to create con- tent, craft our writing, and include features that focus on the needs and interests of the user. To that end, Learning Objectives and “The Bigger Picture” feature open the main sections of each chapter and immediately place students in a practical learning mode.

PREFACE

“(This) is a text with a practical approach . . . Theory is there, but explained in a hands-on manner, which fits well into the way I present the course.”

Dr. Floyd Ormsbee —Clarkson University

“Practical, student centered, highly relevant to both students and employers needs. (It) hits all of the most critical topics of OB in an engaging and visually appealing way, and includes a critical thinking approach that is easy to learn and use.”

Jody Tolan —University of Southern California Marshall School of Business

Make it simple, make it affordable. Connect makes it easy with seamless integration using any of the major Learning Management Systems— Blackboard®, Canvas, and D2L, among others—to let you organize your course in one convenient location. Give your students access to digital materials at a discount with our inclusive access program. Ask your McGraw-Hill representative for more information.

Solutions for your challenges. A product isn’t a solution. Real solutions are affordable, reliable, and come with training and ongoing support when you need it and how you want it. Our Customer Experience Group can also help you troubleshoot tech problems— although Connect’s 99% uptime means you might not need to call them. See for yourself at status. mheducation.com

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xvi PREFACE

Dr. Bill Carnes, Metropolitan State University of Denver—College of Business

Ileene Chernoff, University of Phoenix

Donna Chlopak, Montclair State University

Amanda L. Christensen, University of Cincinnati

Dean Cleavenger, University of Central Florida

Elizabeth Cooper University of Rhode Island

Dana M. Cosby, Western Kentucky University

Matthew Cronin, George Mason University

Joe Daly, Appalachian State University

Caitlin A. Demsky, Oakland University

Diane Denslow, University of North Florida

Dr. Anant Deshpande, SUNY Empire State College

John DeSpagna, Nassau Community College

Kristen DeTienne, Brigham Young University

Ken Dunegan, Cleveland State University

Steven M. Elias, New Mexico State University

Aimee Ellis, Ithaca College

W. Randy Evans, University of Tennessee at Chattanooga

Michelle H. Feller, Weber State University

Martin L. Fogelman, SUNY Albany

Charla S. Fraley, Columbus State Community College

John D. Fuehrer, Baldwin Wallace University

Allison S. Gabriel, University of Arizona

Jane Whitney Gibson, Nova Southeastern University

Cynthia Gilliand, University of Arizona

Acknowledgments We could not have completed this product without the help and support of a great number of people. It all began with the vision of our director, Michael Ablassmier. He assembled a fantastic team to help create a truly unique product and pushed us to cre- ate new and applied features valued by the market. Among our first-rate team at McGraw-Hill, we want to acknowledge key contributors: Senior Product Developer Anne Ehrenworth’s assistance was instrumental in structuring the editorial pro- cess; Cate Rzasa, content developer, Debbie Clare, Senior Marketing Manager, helped us implement our vision for creative and proactive marketing; Harvey Yep lead content project manager, and Keri Johnson, senior content project manager, led the core and Connect components through the production process; Matt Diamond, designer, and Debra Kubiak, design manager, worked with us to streamline the design and come up with a creative new cover concept; and Allison Marker, editorial coordinator, provided tremendous support behind the scenes.

We also want to thank Patrick Soleymani, George Mason University, for his work on the Teaching Resource Manual. Patrick also con- tributed in many other ways to help us achieve our vision. We are also grateful to Lara Hobson for her work on the Test Bank, and to Jake Heller for his work on the PowerPoints. Deep gratitude goes to Ravi Shanmugam for his work on Connect, and Ken Carson, Grove City College, for all his work on researching and developing the Self-Assessment feedback.

We would like to acknowledge the following instructors for providing feedback to shape this product. Special thanks goes to:

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B.D. Boardman, University of Phoenix

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Chris Bresnahan, University of Southern California

Mark Burdsall, University of Pittsburgh

E. Holly Buttner, PhD., University of North Carolina at Greensboro—Bryan School of Business & Economics

xviiPREFACE

Katie Liljequist, Brigham Young University

Gregory P. Lucht, University of Phoenix

Douglas Mahony, Lehigh University

Jennifer Malarski, Metropolitan State University

Laura Martin, Midwestern State University

J. J. Massey, The University of Texas at Tyler

Merrill A. Mayper, University of Phoenix

Douglas McCabe, Georgetown University—McDonough School of Business

Lorianne D. Mitchell, East Tennessee State University

Dan Morrell, Middle Tennessee State University

Paula C. Morrow, Iowa State University

Robert Muliero, University of Phoenix

David D. Mull, Columbia College of Missouri

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Dr. Floyd Ormsbee, Clarkson University

Bradley P. Owens, State University of New York at Buffalo

John Pepper, The University of Kansas

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Connie Golden, Lakeland Community College

Nora Alicia González, University of Phoenix

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Christina Goodell, Florida State College at Jacksonville

Meghan Griffin, Daytona State College

Samuel Hazen, Tarleton State University

Kim Hester, Arkansas State University

Lara Hobson, Western Michigan University

Wayne Hochwarter, Florida State University

Madison Holloway, Metropolitan State University of Denver

Brooks Holtom, Georgetown University

Jenni Hunt, Southern Illinois University—Edwardsville

Teresa Hutchinson, University of Phoenix

Kendra Ingram, Texas A&M University—Commerce

Hank Karp, Hampton University

Stacey R. Kessler, Montclair State University

Anthony J. Kos, Youngstown State University

Michael Kosicek, Indiana University of Pennsylvania

Christine L Krull, IUPUI

Mika Tatum Kusar, Fort Lewis College

Caroline Leffall, Bellevue College

Fengru Li, University of Montana Business School

xviii PREFACE

Patrick Soleymani, George Mason University

Dan Spencer, University of Kansas

Dr. Atul Teckchandani, California State University—Fullerton

Mussie T. Tessema, Winona State University

Linda Thiede Thomas, Bellevue University

Jody Tolan, University of Southern California—Marshall School of Business

Mary L. Tucker, Ohio University

Brian Usilaner, University of Maryland—University College

Wellington Williams, Jr., University of Phoenix

Robert M. Wolter, IUPUI School of Engineering and Technology

John G. Zappala, Central Michigan University

Finally, I hope you enjoy this textbook. Best wishes for happiness, health, and success!

Angelo Kinicki

Joe Rode, Miami University—Oxford

Matt Rodgers, The Ohio State University

Deborah Roebuck, Kennesaw State University

Kristie Rogers, University of Kansas

Hannah R. Rothstein, CUNY Baruch College

Christopher Roussin, Suffolk University

David Ruderman, University of Colorado at Denver

Frances McKee Ryan, University of Nevada—Reno

Gordon Schmidt, Indiana Purdue University—Fort Wayne

Dr. Marina Sebastijanovic, University of Houston

Holly Schroth, University of California

Ravi Shanmugam, University of Kansas

Richard G. Sims, University of Phoenix

Kenneth Solano, Northeastern University

xix

PART ONE Individual Behavior 1

1 Making OB Work for Me 2

2 Values and Attitudes 42

3 Individual Differences and Emotions 76

4 Social Perception and Managing Diversity 120

5 Foundations of Employee Motivation 160

6 Performance Management 198

7 Positive Organizational Behavior 250

PART TWO Groups 295 8 Groups and Teams 296

9 Communication in The Digital Age 336

10 Managing Conflict and Negotiations 378

11 Decision Making and Creativity 422

12 Power, Influence, and Politics 464

13 Leadership Effectiveness 506

PART THREE Organizational Processes 547 14 Organizational Culture,

Socialization, and Mentoring 548

15 Organizational Design, Effectiveness, and Innovation 592

16 Managing Change and Stress 636

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xx CONTENTS

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1 MAKING OB WORK FOR ME

WINNING AT WORK 3 WHAT’S AHEAD IN THIS CHAPTER 3

1.1 Use Knowledge of OB to Enhance Your Performance and Career 4 How OB Fits into My Curriculum and Influences

My Success 4 APPLYING OB: Self-Awareness Can Help You Build

a Fulfilling Career 6 SELF-ASSESSMENT 1.1: How Strong Is

My Motivation to Manage? 6 Employers Want Both Hard and Soft Skills 7 How OB Fits into My Career 8 APPLYING OB: How to Ace Your Next Interview 9

1.2 Right vs. Wrong—Ethics and My Performance 11 Cheating 11 Ethical Lapses—Legality, Frequency, Causes, and

Solutions 13 OB IN ACTION: Wrong? Absolutely! Illegal?

Seemingly Not. 14 OB IN ACTION: The Whistle-Blower’s Dilemma 16 SELF-ASSESSMENT 1.2: Assessing My

Perspective on Ethics 20

1.3 OB and Problem Solving 21 A 3-Step Approach 21 Tools to Reinforce My Problem-Solving Skills 23 SELF-ASSESSMENT 1.3: Assessing Your

Problem-Solving Potential 23

1.4 Structure and Rigor in Solving Problems 24 The Person–Situation Distinction 24 Three Levels of OB 26 Applying OB Concepts to Problem Solving 26

1.5 The Organizing Framework for Understanding and Applying OB 27 A Basic Version of the Organizing Framework 27 APPLYING OB: Mars: The World We Want

Tomorrow 28 Using the Organizing Framework for Problem

Solving 29 Applied Approaches to Selecting a Solution 29 Basic Elements for Selecting an Effective Solution 30

1.6 Preview and Application of What You Will Learn 31 The 3-Step Problem-Solving Approach 31 The Organizing Framework 31 PROBLEM-SOLVING APPLICATION: Technology:

A Situation Factor That Affects Your Performance 33

Hypothetical Problem-Solving Scenario 34

1.7 Making the Connection: What Is OB and Why Is It Important? 36 Our Wishes for You 36

What Did I Learn? 37 Problem-Solving Application Case: Blood, Brilliance, Blind Ambition, and Fraud 39 Legal/Ethical Challenge: What Would You Do? 41

PART ONE Individual Behavior 1

2 VALUES AND ATTITUDES

WINNING AT WORK 43 WHAT’S AHEAD IN THIS CHAPTER 43

2.1 Personal Values 44 Schwartz’s Value Theory 44 SELF-ASSESSMENT 2.1: What Are My

Core Values? 47 The Dynamics of Values 47

2.2 Personal Attitudes and Their Impact on Behavior and Outcomes 48 OB IN ACTION: Hospitality Industry Uses Attitude

Surveys to Target Causes of Turnover 49 Personal Attitudes: They Represent Your Consistent

Beliefs and Feelings about Specific Things 49

Attitudes Affect Behavior via Intentions 51 PROBLEM-SOLVING APPLICATION: McDonald’s

Workers Protest Sexual Harassment: What Should Management Do? 52

2.3 Key Workplace Attitudes 54 Organizational Commitment 54 Employee Engagement 56 SELF-ASSESSMENT 2.2: To What Extent Are You

Engaged in Your Studies? 58 OB IN ACTION: Companies Foster Employee

Engagement in Different Ways 58 Perceived Organizational Support 59

xxiCONTENTS

3 INDIVIDUAL DIFFERENCES AND EMOTIONS

WINNING AT WORK 78 WHAT’S AHEAD IN THIS CHAPTER 78

3.1 The Differences Matter 79 APPLYING OB: Does Your Potential Boss Get the Job? 80

3.2 Intelligences: There Is More to the Story Than IQ 82 Intelligence Matters . . . And You Have More Than You

Might Think 82 Practical Implications 85 OB IN ACTION: Smarts and Performance in Sports 86

3.3 Personality, OB, and My Effectiveness 87 There Is More to Personality Than Liking and Fit 87 The Big Five Personality Dimensions 88 SELF-ASSESSMENT 3.1: What Is My Big Five

Personality Profile? 88 Hail the Introverts 89 Proactive Personality 89 APPLYING OB: How to Thrive as an Introvert 90 SELF-ASSESSMENT 3.2: How Proactive Am I? 90 The Dark Side of Personality 92 Personality and Performance 93 Personality Testing at Work 93 APPLYING OB: Acing Employment Tests 94 There Is No “Ideal Employee” Personality 95

3.4 Core Self-Evaluations: How My Efficacy, Esteem, Locus, and Stability Affect My Performance 96 Self-Efficacy—“I Can Do That” 97 OB IN ACTION: You Can Go to the Moon and Beyond,

If You Believe in Yourself 98 Self-Esteem—“Look in the Mirror” 99

Locus of Control: Who’s Responsible—Me or External Factors? 100 Emotional Stability 101 Three Practical Considerations for Core Self-Evaluations 102 SELF-ASSESSMENT 3.3: How Positively Do I See Myself? 103

3.5 The Value of Being Emotionally Intelligent 104 What Is Emotional Intelligence? 104 SELF-ASSESSMENT 3.4: What Is Your Level of Emotional

Intelligence? 105 PROBLEM-SOLVING APPLICATION: Darkness in the C-Suite

at Uber 106 Benefits of EI 107

3.6 Understand Emotions to Influence Performance 109 Emotions—We All Have Them, but What Are They? 109 Emotions as Positive or Negative Reactions to Goal

Achievement 110 APPLYING OB: Do You Procrastinate? Blame Your

Emotions! 110 Besides Positive and Negative, There’s Past vs. Future 111 How Can I Manage My Negative Emotions at Work? 111 OB IN ACTION: The Good and Bad of Anger at Work 111 APPLYING OB: Managing Emotions During Job Search 113

3.7 Making the Connection: How Do Individual Differences and Emotions Affect My Performance? 114

What Did I Learn? 115 Problem-Solving Application Case: Better Ingredients. Better Pizza. Worst Spokesperson. 117 Legal/Ethical Challenge: To Test or Not to Test, That Is a Problem 119

2.4 The Causes of Job Satisfaction 60 SELF-ASSESSMENT 2.3: How Satisfied Are You with Your

Present Job? 60 At a Glance: Five Predominant Models of Job Satisfaction 61 Brief Preview: Five Predominant Models of Job Satisfaction 61 A Shorter Walk to Work 62 APPLYING OB: Best Practices for Implementing

Telecommuting 63

2.5 Major Correlates and Consequences of Job Satisfaction 64 Attitudinal Outcomes of Job Satisfaction 64 PROBLEM-SOLVING APPLICATION: What to Do, or Not to Do,

about Sexual Harassment 65

Behavioral Outcomes of Job Satisfaction 66 APPLYING OB: Using Job Satisfaction to Reduce Employee

Turnover 69 Organizational-Level Outcomes of Job Satisfaction 69

2.6 Making the Connection: How Do Values and Attitudes Affect Work-Related Outcomes? 70

What Did I Learn? 71 Problem-Solving Application Case: Walmart’s Values Come under Scrutiny 73 Legal/Ethical Challenge: What Should Management Do About an Abusive Supervisor? 75

4 SOCIAL PERCEPTION AND MANAGING DIVERSITY

WINNING AT WORK 122 WHAT’S AHEAD IN THIS CHAPTER 122

4.1 The Perception Process 123 Stages of Social Perception 123 A Model of Person Perception 125 APPLYING OB: Developing Cultural Awareness to Enhance

Perception 127

Managerial Implications of Person Perception 128 OB IN ACTION: Virtual Interviews Can Improve the Accuracy

of Job Interviews and Reduce Costs 129

4.2 Stereotypes 130 Stereotype Formation and Maintenance 130 Managerial Challenges and Recommendations 131

xxii CONTENTS

4.7 Organizational Practices Used to Effectively Manage Diversity 148 Framework of Options 148 How Companies Are Responding to the Challenges of

Diversity 150 PROBLEM-SOLVING APPLICATION: Firefighters, 46 and 54,

Sue for Age Discrimination 151 SELF-ASSESSMENT 4.3: How Does My Diversity Profile Affect

My Relationships with Other People? 152

4.8 Making the Connection: Why Is Understanding Perception and Diversity Essential to Your Success? 153

What Did I Learn? 154 Problem-Solving Application Case: White, Male, and Asian: The Diversity Profile of Technology Companies 157 Legal/Ethical Challenge: Should Patient Requests Trump Health Care Employees’ Civil Rights? 159

4.3 Causal Attributions 132 Kelley’s Model of Attribution 132 Attributional Tendencies 134 Managerial Applications and Implications 134

4.4 Defining and Managing Diversity 135 Layers of Diversity 135 Affirmative Action vs. Diversity Management 137

4.5 Building the Business Case for Managing Diversity 139 Business Rationale 139 OB IN ACTION: Using Product Design to Reach a Diverse

Market 139 Trends in Workforce Diversity 140 SELF-ASSESSMENT 4.1: What Are Your Attitudes Toward

Working with Older Employees 144

4.6 Barriers and Challenges to Managing Diversity 145 APPLYING OB: Best Companies for Millennials 146 SELF-ASSESSMENT 4.2: Assessing an Organization’s Diversity

Climate 147

5 FOUNDATIONS OF EMPLOYEE MOTIVATION

WINNING AT WORK 161 WHAT’S AHEAD IN THIS CHAPTER 161

5.1 The What and Why of Motivation 162 Motivation: What Is It? 162 The Two Fundamental Perspectives on Motivation:

An Overview 163

5.2 Content Theories of Motivation 164 McGregor’s Theory X and Theory Y 164 Maslow’s Need Hierarchy Theory: Five Levels of Needs 164 Acquired Needs Theory: Achievement, Affiliation, and

Power 165 SELF-ASSESSMENT 5.1: Assessing Your Acquired Needs 166 OB IN ACTION: Cameron Mitchell, Founder and CEO of

Cameron Mitchell Restaurants, Exemplifies Acquired Needs 167

Self-Determination Theory: Competence, Autonomy, and Relatedness 168

Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve Satisfaction 169

PROBLEM-SOLVING APPLICATION: Walmart Adds Sick-Leave Pay. Problem Solved? 171

5.3 Process Theories of Motivation 173 Equity/Justice Theory: Am I Being Treated Fairly? 173 SELF-ASSESSMENT 5.2: Measuring Perceived Interpersonal

Treatment 176 Expectancy Theory: Does My Effort Lead to Desired

Outcomes? 178

PROBLEM-SOLVING APPLICATION: Symphony Orchestras on Strike 180

PROBLEM-SOLVING APPLICATION: A High School Principal Uses Principles of Expectancy Theory to Motivate Students 182

Goal-Setting Theory: How Can I Harness the Power of Goal Setting? 182

5.4 Motivating Employees through Job Design 185 Top-Down Approaches—Management Designs Your Job 186 OB IN ACTION: Job Swapping and Job Rotation Opportunities

Abound 187 Bottom-Up Approaches—You Design Your Own Job 189 SELF-ASSESSMENT 5.3: To What Extent Have I Used Job

Crafting? 191 Idiosyncratic Deals (I-Deals)—You Negotiate the Design of Your

Job 191 SELF-ASSESSMENT 5.4: Creating an I-Deal 191

5.5 Making the Connection: How Can I Apply Motivation Theories? 192

What Did I Learn? 193 Problem-Solving Application Case: Workers at Amazon Are Not Feeling Motivated 195 Legal/Ethical Challenge: Should Senior Executives Receive Bonuses for Navigating a Company through Bankruptcy 197

6 PERFORMANCE MANAGEMENT

WINNING AT WORK 200 WHAT’S AHEAD IN THIS CHAPTER 200

6.1 Performance Management Processes 201 Effective Performance Management 201 Common Uses of Performance Management 202

APPLYING OB: Apply Goal Setting to Your Job and Career 203

What Goes Wrong with Performance Management 203 APPLYING OB: The Deloitte Way: “Snapshots”

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