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Management Strategy For Performance

Professional Assignment 1 -

Review :

Two Contemporary Companies’ Use of Crowdsourcing: Threadless and Challenge Post on Page 77

Answer :

1. Why is Threadless so successful?

2. What competitive advantages do they have over comparable design firms using traditional strategies for product design?
3. What is the logic of crowdsourcing and why has it caught on in so many areas and for so many applications?

4. What are some potential traps and limitations of crowdsourcing efforts?

5. Identify at least two other businesses, or business functions, that you think could achieve breakthrough gains via the use of crowdsourcing.

Document your citations throughout the text of a 4 – 6 page paper; APA is the accepted . Your papers must include an introduction and a clear thesis, several body paragraphs, and a conclusion. Top papers demonstrate a solid understanding of the material and critical thinking. Remember, you need eight peer-reviewed sources at a minimum)

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INSTRUCTORS GET:

• Interactive Applications – book-specifi c interactive assignments that require students to APPLY what they’ve learned.

• Simple assignment management, allowing you to spend more time teaching.

• Auto-graded assignments, quizzes, and tests.

• Detailed Visual Reporting where student and section results can be viewed and analyzed.

• Sophisticated online testing capability.

• A fi ltering and reporting function that allows you to easily assign and report on materials that are correlated to accreditation standards, learning outcomes, and Bloom’s taxonomy.

• An easy-to-use lecture capture tool.

With McGraw-Hill's Connect® Plus Organizational Behavior,

Would you like your students to show up for class more prepared? (Let’s face it, class is much more fun if everyone is engaged and prepared…)

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INSTRUCTORS...

Less managing. More teaching. Greater learning.

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MANAGING ORGANIZATIONAL BEHAVIOR What Great Managers Know and Do

SECOND EDITION

Timothy T. Baldwin Indiana University

William H. Bommer California State University, Fresno

Robert S. Rubin DePaul University

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MANAGING ORGANIZATIONAL BEHAVIOR: WHAT GREAT MANAGERS KNOW AND DO

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2013, 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a data- base 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.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2

ISBN 978–0–07–353040–6 MHID 0–07–353040–9

Vice president and editor-in-chief: Brent Gordon Editorial director: Paul Ducham Executive editor: John Weimeister Executive director of development: Ann Torbert Development editor: Jane Beck Editorial coordinator: Heather Darr Vice president and director of marketing: Robin J. Zwettler Marketing director: Amee Mosley Senior marketing manager: Michelle Heaster Vice president of editing, design, and production: Sesha Bolisetty Senior project manager: Diane L. Nowaczyk Buyer II: Debra R. Sylvester Senior designer: Mary Kazak Sander Senior photo research coordinator: Jeremy Cheshareck Photo researcher: Ira C. Roberts Lead media project manager: Daryl Horrocks Media project manager: Suresh Babu, Hurix Systems Pvt. Ltd. Cover and interior design: Kay Lieberherr Cover image: Jan Greune/Getty Images Typeface: 10/12 New Aster LT Std Compositor: Laserwords Private Limited Printer: R. R. Donnelley

Library of Congress Cataloging-in-Publication Data Baldwin, Timothy T. Managing organizational behavior : what great managers know and do / Timothy T. Baldwin, William H. Bommer, Robert S. Rubin. — 2nd ed. p. cm. Rev. ed. of: Developing management skills : what great managers know and do / Timothy T. Baldwin, William H. Bommer, Robert S. Rubin. 2008 Includes index. ISBN-13: 978–0–07–353040–6 (alk. paper) ISBN-10: 0–07–353040–9 (alk. paper) 1. Management—Study and teaching. 2. Organizational behavior. 3. Executive ability. I. Bommer, William. II. Rubin, Robert S. III. Baldwin, Timothy T. Developing management skills. IV. Title. HD30.4.B355 2013 658.4'07124—dc23 2011040779

www.mhhe.com

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To JoEllen—25 years together and I can’t imagine the journey without you.

—Tim Baldwin

To the kids—always a test of my management skills.

—Bill Bommer

To Leah—the glue that holds us all together.

—Bob Rubin

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vi

ABOUT THE AUTHORS

TIMOTHY (Tim) T. BALDWIN is the Eveleigh Professor of Business Leader- ship at the Indiana University Kelley School of Business. Professor Baldwin holds a PhD in organizational behavior and an MBA from Michigan State University. He has published his research work in leading academic and professional outlets, including the Academy of Management Journal, Journal of Applied Psychology, Per- sonnel Psychology, Journal of Management, Leadership Quarterly, and Academy of Management Learning & Education. He has won several national research awards including eight Best Paper Awards from the Management Education & Develop- ment division of the Academy of Management. He has twice been the recipient of the Richard A. Swanson Excellence in Research Award presented by the Ameri- can Society for Training & Development (ASTD). He is the co-author of Improv- ing Transfer Systems in Organizations (Jossey-Bass: 2003) and his current research interests include leadership development and organizational training effectiveness.

In his time at Indiana University, Tim has been recognized frequently for teaching excellence, winning eight MBA Teaching Awards, the Eli Lilly Alumni Teaching Award, the FACET All-University Teaching Award, and the Dow Innova- tion in Teaching Fellowship. He is a proud member of the Organizational Behav- ior Teaching Society (OBTS) and a passionate supporter of the mission of that organization to improve teaching effectiveness in our discipline.

Tim’s background includes consultation with Cummins Engine, Eli Lilly, FedEx, Ingersoll Rand, Whirlpool, and a variety of other organizations in both the public and private sectors. He has also designed and delivered numer- ous executive education seminars in the U.S. and abroad, including the Kel- ley School’s Asia-Pacifi c Management Development program. He serves on the Board of Directors of Cripe Architects & Engineers, Inc., a professional services fi rm based in Indianapolis.

Tim is married with one son, one dog, one cat, and until recently, one gerbil (a sad story, and the cat is implicated). His interests include coaching youth sports, golf, basketball, gardening, and a little amateur magic.

WILLIAM (Bi l l ) H. BOMMER earned his master’s degree in organizational development from Bowling Green State University, and his PhD in organiza- tional behavior from Indiana University. He is currently a professor of manage- ment in the Craig School of Business at California State University, Fresno. Prior to his move to California, Bill served as faculty at Bowling Green State Univer- sity, Southern Illinois University at Edwardsville, Georgia State University, and Cleveland State University.

Bill has published widely in the management area in journals including the Academy of Management Journal, Academy of Management Learning & Education, Leadership Quarterly, Organizational Behavior and Human Decision Processes, Per- sonnel Psychology, Journal of Applied Psychology, Journal of Management, Journal of Vocational Behavior, and Organization Science. His current research interests include transformational leadership, organizational and personal change, and the linkage between attitudes and behavior.

Prior to entering academia, Bill worked as a fi nancial analyst and as a group process consultant in private industry. Bill has remained active in his business relationships and has designed and led numerous executive education programs

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ABOUT THE AUTHORS vii

over the last 15 years. In support of his research interests, he has served as a trainer and consultant to a large number of manufacturing companies across the United States and has had a long-term relationship with the Centers for Disease Control. In this capacity, Bill has designed corporate universities for his clients. Bill is also managing partner of Collegiate Assessment Partners (CAPs), a com- pany that builds management skills assessment tools and consults with univer- sity business schools in support of their learning objectives and their compliance with accreditation standards. When not involved with teaching, researching, or consulting, Bill enjoys traveling, hiking, eating, and cycling.

Robert (Bob) S. Rubin is an associate professor of management in the Kell- stadt Graduate School of Business at DePaul University. He received his BA in psychology from Indiana University, his MA in industrial-organizational psychol- ogy from Southern Illinois University at Edwardsville, and his PhD in organiza- tional psychology from Saint Louis University.

Bob specializes in human resource management and organizational behavior at DePaul, where he is an avid and award-winning teacher committed to advanc- ing the fi eld of management education. He has been nationally recognized for his dedication to management andragogy and scholarship, including multiple Best Paper Awards from the Management Education Division of the Academy of Management. His research interest centers on individual differences and their role in effective leadership and management development and includes forays into aspects of transformational leadership, managerial assessment and develop- ment, academic assessment centers, and emotions at work. Bob has published his work in leading academic journals such as Academy of Management Jour- nal, Journal of Applied Psychology, Personnel Psychology, Journal of Management, Academy of Management Learning & Education, The Leadership Quarterly, Jour- nal of Organizational Behavior, and Journal of Management Education. Currently, Bob is an editorial board member of three journals, the Academy of Management Learning & Education, Journal of Organizational Behavior, and Leadership and Organizational Studies.

In addition to his academic work, Bob has been an active human resources and organization development consultant to a variety of industries including bio- technology, health care, dentistry, and transportation. His consulting work has spanned employee selection, management assessment, and development. Bob also frequently serves as a coach for purposes of management skill development. When he’s not engaged in managing his more senior textbook co-authors (Note: He had a full head of hair prior to beginning this book project), Bob enjoys play- ing music, traveling, hiking, and wrestling with his three kids.

“The great thing about having a PhD is when people do not under- stand you, they think it’s them.”

— Henry Kissinger

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viii

A Different Kind of Textbook—Because Teaching and Learning OB Are Hard Enough!

Contemporary students put extraordinary demands on OB instructors and text- books alike. On one hand, students immersed in quantitative courses such as fi nance and accounting and other business disciplines are often quick to dis- miss OB/management courses as “soft” or “elementary” or “common sense”—so there is a pressing need for relevance and richness. On the other hand, modern technology and short attention spans have created an aversion to the theoretical grounding and evidence-based education necessary to build true understanding and applicable skills.

Thoughtful OB and management instructors are therefore often torn between opting for a traditional descriptive text, strong on concepts and defi nitions, but with little application focus, or choosing a more popular-press reading, strong on war-story anecdotes and prescriptions (often more popular with students), but short on theory and evidence.

Recognizing this tension in our own OB classrooms, we set out to create a book (and ancillary package) with an express mission of balance. To work for us, the book would have to be one that students would fi nd engaging but also would have the coverage, rigor, and evidence base demanded of professional OB and management instructors. So this text is evidence-based but targeted to application. It covers traditional OB topics but in a decision-oriented, not just descriptive, way. It embraces the best OB models and evidence but engages stu- dents in how to use those models to improve their skill-sets and more success- fully navigate organizational life. Just as the book’s title conveys, it is about both knowing and doing. It is expressly designed to reconcile student demands for relevance and application with instructor interests in rigor, evidence, and appro- priate coverage of the discipline. We know fi rsthand that teaching OB today is akin to straddling a glacier crevasse and this book is designed in that spirit.

Put another way, we saw our charge as creating a book that would inform, illuminate, and inspire. We wanted to inform students of the best and most current knowledge about organizational behavior and its application to man- agement contexts. We wanted to illuminate those concepts with the most vivid and memorable examples and illustrations. And we wanted to inspire learners by capturing and conveying the challenge and excitement and even playfulness involved in managing and working with people. To do that, we found it appropri- ate to diverge from conventional textbooks in several signifi cant ways, and we briefl y highlight those choices in the following.

Skills and Decisions vs. Concepts and Description For whatever reason, almost every leading OB textbook today still has a decid- edly descriptive orientation. For example, team effectiveness may sound like a very applied topic. Yet most textbook chapters so titled deal exclusively with the different types of teams, comparisons of individual and team decision making,

“Ideal management education should reorient its priorities and focus on skill training. A great deal is known about inculcating such skills, but the knowledge does not typically make its way into the business curriculum.”

— Henry Mintzberg , McGill University

PREFACE

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PREFACE ix

theories of team development and confl ict, and so on. In most cases, the infor- mation is accurate, but it leaves students marginally prepared to work effectively in a team.

Similarly, chapters on motivation and leadership often trace the history of research and theory in those areas but end up not directly addressing the skills and behaviors a student needs to actually motivate others or lead a group or a change project. Our goal in this text was to get beyond description to skill devel- opment and decisions, that is, not just what defi nes a good group, but how one might make a group function better. Our goal was to translate from description to decisions—from OB concepts to organizational and managerial action.

Student-Centric Evidence and Learning vs. Comprehensive Body of Knowledge In recent years, we have come to understand much more about how students actually consume textbook material. As a result, we approached the process of writing this book in a different way than perhaps a traditional textbook might be written. For example, in selecting the content for each chapter in this book, we purposively did not start by spreading out all of the existing textbooks and look- ing at all the accumulated knowledge about that topic. Rather, we began with the key questions, problems, and challenges people face in, say, managing time, communicating a persuasive message, overcoming resistance to change, or deal- ing with a problem team member, and then turned to the existing literature to build chapters around those problems.

Indeed, as we wrote each chapter, we adopted a position akin to editors of Consumer Reports magazine. That is, we tried to test assumptions about what students really read and consume, and what instructors really use from a text- book. And we asked ourselves: What do we want to use? What material connects with students? What are the best readings and exercises? What material do we rarely or never use? We call this student-centric material.

The Russian author Tolstoy once insightfully noted that “ all happy families resemble each other, but each unhappy family is unhappy in its own way. ” Simi- larly, we would contend that all effective managers resemble one another, but poor ones are ineffective in their own unique ways. And the fi rst phase of com- petence is how readily and skillfully novices can respond to routine situations, not simply their ability to handle unusual ones. So we should strive less for com- prehensiveness and more on achieving fundamental skills and knowledge that can help aspiring managers operate in the most core and recurring situations commonly faced (e.g., our Manage What? scenarios that frame each chapter are designed to do just that). Our goal was to include the material and evidence, and only that material and evidence, that might be labeled “mission critical.” The book is relatively short in order to do important things well, rather than attempt to superfi cially cover the waterfront.

We hasten to add, however, that to suggest that students today want nothing to do with research, or want their texts “dumbed down,” is both inaccurate and condescending. Indeed, our experience is that students do want to know the ori- gins of what they are being taught—provided the research helps bring concepts to life. For example, a fascinating recent study found that monkeys will turn down very desirable food if they know that other fellow monkeys are getting even more desirable food. In our view, this is a terrifi c illustration of the intense power of equity perceptions, and something that is likely to stick with students in their study of motivational concepts.

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Hearing the Voice of the Student vs. Pushing the Discipline We like to think that our “partners” in writing this book were the many students and practicing managers who have been in our courses, completed our surveys, and shared with us the ideas, tools, quotations, and “little gems” that helped them develop and refi ne their own skills. Indeed, over the last few years we have asked our students to interview practicing managers and to fi nd out how those manag- ers would evaluate the organizational behavior and management courses they took in college. In doing so, the managers frequently pointed out that courses focused a lot of attention on theories and concepts but, in their view, focused too little on relevant prescriptive principles and skills. They were challenged most by the “people problems” in their work, and yet felt their management education had not emphasized, or adequately prepared them for, that component of their job. So in writing this text, we tried to consistently take into account what those who ultimately must go and practice management most need to know.

Finally, in the course of writing this book we were often asked how our book would differ from popular-press books. In responding to that we are always quick to clarify that we certainly do not consider “popular” to be synonymous with bad. Indeed, there are some wonderful and useful popular works that we draw from in this book. We do, however, think the distinction between this book and many of the popular-press books on similar topics is pronounced and critically impor- tant. In our view, any book targeted to students in a university context must pro- vide exposure to the “whys,” that is, the conceptual foundation of skills. We think this book’s defi ning value is its practicality and usefulness, but we contend that this is so because it is based on good theory and research, not because we avoided the important conceptual grounding.

The OB Teaching Challenge: Aiming for Balance We believe that inculcating OB/management skills is perhaps the greatest chal- lenge in business education today—and it is time to more directly and intention- ally take on that challenge. Few people question the analytic capability of today’s graduating students—but the jury is still out on their interpersonal and leader- ship competence. We think a skills-based, decision-oriented approach, manifest in this text, is critical to addressing that challenge. In sum, working and man- aging effectively in organizations today is an act of supreme balance—and our hope is that we have created a textbook that is true to that charge.

Features of the Book

Manage What? One of our favorite teaching colleagues is an accounting professor who enjoys pointing out to us that, while every organization has accounting, information sys- tems, and marketing departments, he has never heard of a corporation that has a management department. He further chides us that having a degree in manage- ment invites the question, “ Management of what? ” In reality, he is a passionate advocate for improving the management skills of his accounting students and even pushed us to write this text. But his observation raises an important issue.

One of the legitimate criticisms of OB and management courses and text- books, even those with a stated skills focus, is that they tend to be rather abstract about what is really being managed. There is often a curious lack of focus on the

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PREFACE xi

specifi cs of what managers are challenged to do, and on how great professionals might respond to those challenges.

With that in mind, we decided to open each chapter with a section we call Manage What? The Manage What? feature consists of several fundamental and specifi c questions or challenges related to the skill focus of that chapter. For example, in the chapter on team effectiveness, one scenario poses a challenge regarding how to deal with members who are not pulling their weight. In the motivation chapter, one of the scenarios addresses how to diagnose and deal with a person who shows little desire to do better work, and so on. So that stu- dents can conduct a “skills check,” we have also included selected critiques or debriefi ngs of how a skilled manager might have proceeded on the Manage What? scenarios. We have intentionally, however, not included all of the debriefs at the end of the chapters. Some of the debriefs are only available in the instruc- tor’s manual so that those critiques can be distributed to students at any point— or sometimes as the key when we use the Manage What? scenarios as exam questions.

Taken together, the Manage What? scenarios comprise a set of the most fun- damental of management skills. They are hardly comprehensive—there is clearly much more to learn about management (and in the book) than how to handle just those scenarios—but the set is a concrete start toward isolating the main- stream and recurring things that great managers do well.

Our accounting professor friend likes to heighten student interest by point- ing out how his course material is good preparation to become a CPA (certifi ed public accountant). We would contend that an understanding and mastery of the Manage What? scenarios would likewise constitute a good step toward becoming a hypothetical CPM or “certifi ed people manager.” No such certifi cation actu- ally exists, but we have sought to include the recurring skills we would expect someone to demonstrate to be certifi ed as a great manager if there were such a reputable credential. Those skills are the focus of the Manage What? scenarios.

Management Live We doubt there is an OB/management instructor alive who would deny the criti- cal importance of illustration and examples in helping students develop the skills of great managers. So, in addition to liberally using examples in the text itself, we also have created a separate feature designed to highlight the most vivid and engaging illustrations, stories, and short cases we could fi nd. We call the section Management Live to capture the spirit of those illustrations, which is expressly to enliven the text and bring to life the concepts in ways meaningful and memo- rable to learners.

Learning theorists have begun using the term “stickiness” to describe learn- ing stimuli that ultimately stay with learners, and that very much captures the spirit of this feature of the book. Our experience is that our students often recall specifi c cases and examples long after they have forgotten lectures and text. So our goal was to infuse each chapter with Management Live examples that catch attention, strike the imagination, and really do “stick” with students as examples and guides.

Manager’s Tool Kits An irrefutable aspect of applying skills is to have a good set of tools. In our exec- utive education work, we have been struck by how much participants appreci- ate “takeaways” like self-assessments, good forms, quick checklists, and so on. Although we have never been particularly focused on such takeaways for our degree students, it occurred to us that such tools would be useful for anyone

“Example is not the main thing in influencing others. It is the only thing.”

— Albert Schweitzer

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PREFACExii

trying to improve his or her management skills. Indeed, a fundamental supposi- tion of the evidence-based management movement is that once evidence is well established, it should be codifi ed into practice through the use of checklists or other decision supports. In this spirit, we therefore embed several Manager’s Tool Kits into each chapter. For example, the performance management chapter has Manager’s Tool Kits for choosing the right performance evaluation method, ana- lyzing a performance problem, and terminating or reassigning an employee. The motivation chapter has a quick guide to rewarding effectively, the confl ict chapter includes a checklist for effective mediation, and so on. The Manager’s Tool Kits are presented in a way that students can copy and actually make use of them now or in the future. Taken collectively, the Manager’s Tool Kits comprise something of a management skills manual. We make no claims that these are original or novel or provocative or anything fancy at all. However, they are the things that make their way onto managers’ offi ce doors, desktop frames, purse cards, and so on.

Contemporary Cases Contemporary OB teaching is hard because students often think that OB teach- ing is not contemporary. That is unfortunate because many of the most progres- sive and “hottest” companies today are, in fact, wonderful exemplars of the best of OB practice. For example, Google’s recent investigation into what makes a great boss at the fi rm turned up a list of characteristics that have been validated for years by OB researchers. Zappos’ 10 cultural commandments read like a syn- thesis of OB research on high-performance cultures. Facebook, Microsoft, and leading hospitality fi rms do not rely on low-validity unstructured interviews and subjective selection practices favored by too many organizations. Rather, they employ the most valid of selection procedures supported by decades of rigorous research.

It was these observations that prompted us in this edition of our text to open each chapter with a case that would satisfy our students’ craving for examples that are (a) authentic— what they like to call “real world,” and (b) current and relevant. We expressly sought fi rms that would strike their imagination, and our goal was to show a clear linkage between what they are reading in the text and the application of those concepts in the most progressive and admired of today’s organizations. So we have endeavored to include cases that have that character at the end of each of our chapters. A master list of the contemporary cases is shown below:

Chapter 1 – eHarmony

Chapter 2 – CIGNA

Chapter 3 – Threadless and ChallengePost

Chapter 4 – TRUTHY

Chapter 5 – Tableau

Chapter 6 – Ritz-Carlton

Chapter 7 – The Dallas Mavericks

Chapter 8 – Klout

Chapter 9 – Google

Chapter 10 – Team Concepts

Chapter 11 – The NFL Players Association

Chapter 12 – Google, Microsoft, Southwest Airlines, and Doubletree Hotels

Chapter 13 – Zappos

Chapter 14 – The Indiana Bureau of Motor Vehicles

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PREFACE xiii

Ancillaries

It is hardly provocative to suggest that the ways students learn today have changed rather dramatically from a generation ago. Just as iPods have changed the way music is delivered and consumed, so too has the Internet, wireless technology, and portable video capability transformed the way learners consume education. Moreover, learning researchers have long recognized that students have different learning styles: some favoring reading and refl ection, and others engaged more by visual depictions and hands-on experience.

The instructional implication is that the most successful courses will be those that expose learners to multiple educational stimuli. With that in mind, we have supplemented this text with a set of supporting resources designed to facili- tate the learning of management skills in multiple ways. Central to these support materials are the Online Learning Center (OLC) at www.mhhe.com/baldwin2e and McGraw-Hill Connect Organizational Behavior.

In summary, we have tried to translate our own experiences in the classroom into a package of learning stimuli that will both appeal to and challenge students of organizational behavior and management. Although sometimes characterized as being elementary or commonsensical, great management is neither common nor easy, and the existence of so many ineffective managers and toxic organiza- tions attests to that. We fi rmly believe that many aspects of management can be learned, but it takes a focus on skills and a more concerted effort to bring those skills to life than many of our traditional learning materials provide. Our hope is that this text and set of ancillaries will be useful in that regard—but we con- sider it all a work in progress. We actively invite your input as we all try to foster better-managed organizations and healthy and engaging places to work.

McGraw-Hill Connect ® Organizational Behavior

Less Managing. More Teaching. Greater Learning. McGraw-Hill Connect Organizational Behavior is an online assignment and assessment solution that connects students with the tools and resources they’ll need to achieve success. McGraw-Hill Connect Organizational Behavior helps pre-

pare students for their future by enabling faster learning, more effi cient studying, and higher retention of knowledge.

McGraw-Hill Connect Organizational Behavior Features Connect Organizational Behavior offers a number of powerful tools and fea- tures to make managing assignments easier, so faculty can spend more time teaching. With Connect Organizational Behavior, students can engage with their coursework anytime and anywhere, making the learning process more acces- sible and effi cient. Connect Organizational Behavior offers you the features described next.

Simple Assignment Management With Connect Organizational Behavior, creating assignments is easier than ever, so you can spend more time teaching and less time managing. The assignment management function enables you to:

• Create and deliver assignments easily with selectable end-of-chapter questions and test bank items.

“Happiness is coming to class and seeing the video projector set up.”

— Charlie Brown

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• Streamline lesson planning, student progress reporting, and assignment grading to make classroom management more effi cient than ever.

• Go paperless with the ebook and online submission and grading of stu- dent assignments.

Smart Grading When it comes to studying, time is precious. Connect Organizational Behavior helps students learn more effi ciently by providing feedback and practice material when they need it, where they need it. When it comes to teaching, your time also is precious. The grading function enables you to:

• Have assignments scored automatically, giving students immediate feedback on their work and side-by-side comparisons with the correct answers.

• Access and review each response; manually change grades or leave com- ments for students to review.

• Reinforce classroom concepts with practice tests and instant quizzes.

Instructor Library The Connect Organizational Behavior Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. The Connect Organizational Behavior Instructor Library includes:

• Instructor’s manual

• PowerPoint slides

• Test bank

• The Connect Organizational Behavior ebook

Student Study Center The Connect Organizational Behavior Student Study Center is the place for stu- dents to access additional resources. The Student Study Center:

• Offers students quick access to lectures, practice materials, ebooks, and more.

• Provides instant practice material and study questions; easily accessible on the go.

• Gives students access to the Personalized Learning Plan described next.

Student Progress Tracking Connect Organizational Behavior keeps instructors informed about how each stu- dent, section, and class is performing, allowing for more productive use of lec- ture and offi ce hours. The progress-tracking function enables you to:

• View scored work immediately and track individual or group perfor- mance with assignment and grade reports.

• Access an instant view of student or class performance relative to learn- ing objectives.

• Collect data and generate reports required by many accreditation organi- zations, such as AACSB.

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Lecture Capture Increase the attention paid to lecture discussions by decreasing the attention paid to note-taking. For an additional charge, Lecture Capture offers new ways for students to focus on the in-class discussion, knowing they can revisit impor- tant topics later. Lecture Capture enables you to:

• Record and distribute your lecture with a click of a button.

• Record and index PowerPoint presentations and anything shown on your computer so it is easily searchable, frame by frame.

• Offer access to lectures anytime and anywhere by computer, iPod, or mobile device.

• Increase intent listening and class participation by easing students’ con- cerns about note-taking. Lecture Capture will make it more likely you will see students’ faces, not the tops of their heads.

McGraw-Hill Connect Plus ® Organizational Behavior McGraw-Hill reinvents the textbook learning experience for the modern student with Connect Plus Organizational Behavior. A seamless integration of an ebook and Connect Organizational Behavior, Connect Plus Organizational Behavior pro- vides all of the Connect Organizational Behavior features, plus the following:

• An integrated ebook, allowing for anytime, anywhere access to the textbook.

• Dynamic links between the problems or questions you assign to your students and the location in the ebook where that problem or question is covered.

• A powerful search function to pinpoint and connect key concepts in a snap.

In short, Connect Organizational Behavior offers you and your students pow- erful tools and features that optimize your time and energies, enabling you to focus on course content, teaching, and student learning. Connect Organizational Behavior also offers a wealth of content resources for both instructors and stu- dents. This state-of-the-art, thoroughly tested system supports you in preparing students for the world that awaits.

For more information about Connect, go to www.mcgrawhillconnect.com , or contact your local McGraw-Hill sales representative.

Tegrity Campus: Lectures 24/7 Tegrity Campus is a service that makes class time available 24/7 by automatically capturing every lecture in a searchable format for students to review when they study and complete assignments. With a

simple one-click start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac.

Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With Tegrity Campus, students quickly recall key moments by using Tegrity Campus’s unique search feature. This search helps students effi ciently fi nd what they need, when they need it, across an entire semester of class recordings. Help turn all your students’ study time into learning moments immediately supported by your lecture.

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To learn more about Tegrity, watch a two-minute Flash demo at http://tegrity campus.mhhe.com .

Assurance of Learning Ready Many educational institutions today are focused on the notion of assurance of learning, an important element of some accreditation standards. Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, is designed specifi cally to support your assurance of learning initiatives with a simple yet powerful solution.

Each test bank question for Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, maps to a specifi c chapter learning out- come/objective listed in the text. You can use our test bank software, EZ Test and EZ Test Online, or Connect Organizational Behavior to easily query for learn- ing outcomes/objectives that directly relate to the learning objectives for your course. You can then use the reporting features of EZ Test to aggregate student results in a similar fashion, making the collection and presentation of assurance of learning data simple and easy.

AACSB Statement The McGraw-Hill Companies is a proud corporate member of AACSB Inter- national. Understanding the importance and value of AACSB accreditation, Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, recognizes the curricula guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the test bank to the six general-knowledge and skill guidelines in the AACSB standards.

The statements contained in Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, are provided only as a guide for the users of this textbook. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, and the teaching package make no claim of any specifi c AACSB qualifi cation or evaluation, we have within Managing Organizational Behavior: What Great Managers Know and Do, Second Edition, labeled selected questions according to the six general-knowledge and skills areas.

McGraw-Hill Customer Care Contact Information At McGraw-Hill, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our prod- ucts. You can e-mail our Product Specialists 24 hours a day to get product-training online. Or you can search our knowledge bank of Frequently Asked Questions on our support website. For Customer Support, call 800-331-5094, e-mail hmsup- port@mcgraw-hill.com , or visit www.mhhe.com/support . One of our Technical Support Analysts will be able to assist you in a timely fashion.

McGraw-Hill Higher Education and Blackboard Have Teamed Up. What Does This Mean for You?

1. Your life, simplifi ed. Now you and your students can access McGraw- Hill’s Connect and Create ™ right from within your Blackboard course— all with one single sign-on. Say goodbye to the days of logging in to multiple applications.

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2. Deep integration of content and tools. Not only do you get single sign- on with Connect and Create ™ ; you also get a deep integration of McGraw- Hill content and content engines right in Blackboard. Whether you’re choosing a book for your course or building Connect assignments, all the tools you need are right where you want them—inside of Blackboard.

3. Seamless gradebooks. Are you tired of keeping multiple gradebooks and manually synchronizing grades into Blackboard? We thought so. When a student completes an integrated Connect assignment, the grade for that assignment automatically (and instantly) feeds your Blackboard grade center.

4. A solution for everyone. Whether your institution is already using Blackboard or you just want to try Blackboard on your own, we have a solution for you. McGraw-Hill and Blackboard can now offer you easy access to industry-leading technology and content, whether your campus hosts it, or we do. Be sure to ask your local McGraw-Hill representative for details.

Changes from the First Edition

The response to our fi rst edition was immensely gratifying, as OB and man- agement instructors seem to be gravitating toward a more skills-oriented and decision-making approach. Among the most favored elements of the original edi- tion was our overt recognition of the knowing–doing gap and the features that engaged students to think about personal and managerial action rather than just the learning of descriptive concepts.

We also received many useful ideas for enhancing the text and have tried to incorporate those ideas into this new edition. Among the most signifi cant changes, this new edition includes:

• Broader coverage to better fi t OB courses. While many of our adoptions were for OB courses, and all three authors use the book in such courses at their respective institutions (Indiana University, California State University–Fresno, and DePaul University) feedback suggested that some instructors, who otherwise were attracted to the skills-oriented approach, did not fi nd the book quite broad enough for their OB course. In response, we restructured the text by adding some signifi cant content and brand-new chapters, resulting in a text that more fully refl ects the scope and evidence base of organizational behavior. Naturally, we changed the title to refl ect this substantial restructuring.

Note that there was no divergence from our skills-orientation or our focus on personal and managerial action. Indeed, we retained the subtitle

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(What Great Managers Know and Do) and intentionally included some content that has not typically been part of most traditional OB books (for example, performance management, selecting and retaining talent, change management, and so on), because the evidence is clear that these areas are essential to effective management and therefore critical in exposing stu- dents to what great managers really know and do. Importantly, these topics are all discussed from a manager’s perspective and should not interfere with or detract from other functional courses such as human resource manage- ment, but rather reinforce the close ties between organizational behavior and human resource management in actual practice. In short, our aim was to make the book better-suited to fi t the content and structure of a typi- cal OB course. And while not for everyone, we do think the text is a great option for those instructors who feel drawn to take a more skills-based and decision-oriented approach to their OB or management skills course

• Knowing and Doing Objectives. As our subtitle suggests, great manage- ment is about both knowing and doing, and so we now overtly include both knowing and doing learning objectives at the outset of each chapter. Instructors (and administrators) have told us that this feature is very useful for those schools concerned with assurance of learning (AACSB), alignment of curriculum to objectives, and related issues that are so ubiq- uitous in business schools.

• Addition of Contemporary Cases and Discussion Questions (with debriefs for instructors). We consistently hear from our students—and now from fellow instructors using the book—that contemporary students want more cases and examples of OB ideas in practice. So we heeded that call by adding two cases to every chapter—most of them drawn from progressive contemporary fi rms that best capture student interest. We also include accompanying discussion questions that challenge students to wrestle with ideas from the book using context from the most exciting and interesting contemporary fi rms.

• Embedded Manager’s Tool Kits. Staying true to our focus on knowing and doing, the new edition integrates the Manager’s Tool Kits (which used to appear at the end of the chapter) directly into the chapter text. We think this embedding makes the popular book feature more user- friendly and, most importantly, facilitates more effi cient transition from knowledge to action.

• More Manage What? Challenges — and New Debriefs. Any student of math knows how important “problem sets” are in facilitating the transi- tion from knowing principles to solving actual problems correctly. More- over, it is really wonderful to have the answers to those problem sets in the back of the book. We think OB learning is analogous. So we have added more of our popular Manage What? challenges that appear at the opening to every chapter. Moreover, in this edition we have also added answers so that students can compare their responses to expert commen- tary on how to address the challenge. On the advice of our book adopters, however, the debrief to at least one such challenge in each chapter is still provided only to instructors so it can be used as an evaluation tool if an instructor so chooses.

• Enhanced Ancillaries and Video Supplements. In today’s contemporary classroom, it takes more than a textbook to bring a class to life. So the book comes complete with an entirely new set of ancillaries, including McGraw-Hill’s innovative Connect program.

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xix

WALKTHROUGH

An Applied Text for an Applied Topic

In a world full of challenging analytic courses such as fi nance, accounting, and computer sci-

ence, students are often quick to dismiss OB/management courses as “soft” or “common

sense” or “just theory.” Unfortunately, many existing textbooks serve only to support those

misconceptions. Teaching and learning organizational behavior and management are hard

enough—your textbook shouldn’t make it harder.

So, unlike other textbooks today, Managing Organizational Behavior: What Great Man-

agers Know and Do, Second Edition, is written with a style and purpose to fi t the demands of

contemporary students and instructors. While including full coverage of the most important

OB models and evidence, the book’s distinct value is its focus on the skills and decisions

required to function effectively as a manager (or individual contributor) in today’s organi-

zations. Unlike traditional texts, the authors draw from the best OB theory and models to

describe how to develop the right mix of skills—and how those skills can be implemented in

contemporary contexts. The distinctive features of the text include the following.

Addresses the Knowing–Doing Gap

The most formidable challenge to OB learning is not knowing but doing —and this book

is expressly focused on facilitating the transition from knowing principles to solving

actual problems. Put another way, when it comes to behaving effectively in organiza-

tions, there is no knowledge advantage without an action advantage.

As the text subtitle (What Great Managers Know and Do) suggests, the authors

engage students to think specifi cally about personal and managerial action rather than

just learning descriptive concepts. Toward that end, every chapter opens with a section

called Manage What? which consists of several fundamental and specifi c challenges

related to the topical focus of the chapter. These scenarios are great for class discus-

sions or written assignments and focus on recurring skills that are fundamental to any

manager’s success. Moreover, at the end of each chapter are debriefs or “answers” to

those challenges that describe how skilled professionals would best respond.

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Provides Contemporary Cases and Examples

One of the most frustrating student perceptions is that organizational behavior is irrel-

evant or old-fashioned. That is unfortunate because many of the most progressive and

“hottest” companies today are, in fact, wonderful exemplars of the best of OB and

management practice. So every chapter in this text opens with a case that will sat-

isfy students’ craving for examples that are (a) authentic—what they like to call “real

world” and (b) current and relevant. The profi led fi rms (e.g., Google, Zappos, and eHar-

mony) are readily visible to students, strike their imagination, and show a clear linkage

between what they are reading in their text and the application of those concepts in the

most progressive and admired of modern organizations.

1. Making a Diffi cult Ethical Choice You have worked for your boss for fi ve years, and he has become a trusted mentor for you in the fi rm. Indeed, there is no one in the fi rm toward whom you feel more respect or loyalty. You just met with him and, due to an unforeseen market downturn, he let you know of a proposed layoff that will affect one of the three people who report to you (Joe). Because the decision has not been announced, and it will surely send shockwaves through the fi rm, he asked that you absolutely not tell any of your subordinates. In fact, concerned the information might get prematurely leaked, he even says, “It is critically important that no one know. Can I count on you?” You agreed emphatically that he could. Unfortunately, that evening you see Joe, who coaches a little league team with you. He tells you he and his wife have been accepted into an adoption process for a new child and he wanted to share his joy with you. He also has heard rumors of a layoff and says, sort of jokingly, “I am not going to be laid off, am I? We could never afford to take care of a new child without my income.”

What should you do? Is this an ethical issue? You are forced to choose between loyalty and your expressed promise on one hand, and your sense of caring and honesty toward Joe (and his potential new child) on the other. What factors will you consider in your decision? On what basis would you justify the ethics of your decision?

2. You Be the Ethicist Author Randy Cohen serves as The Ethicist for The New York Times Sunday Magazine. He frequently poses ethical dilemmas to his readers and an adapted set of those (and similar themes) are listed next. Respond to each of the following scenarios, being sure to identify the ethical frame (utilitarian, universalism, or virtuous person) you are using as the rationale for your response.

a. Is it ethical to buy a sweater to use for a family picture and then return it for a refund?

b. Is it ethical to download a song from the Internet without paying for it given that (a) you would not have downloaded it if you had to pay, (b) you have no money and the artist and record label (or Apple, Inc.) are beyond wealthy, (c) you are actually promoting the artist by listening to and sharing your impressions with others.

c. How much is a cat worth? Your affectionate and obedient cat needs a procedure that will cost a few hundred dollars. Your instinct is to pay for what she needs, but you can’t help thinking it’s wrong. Wouldn’t the cash be better spent on sick humans?

d. Can you ethically round off your 2.958 GPA to 3.0 when using it on your resumé?

e. Is it OK to take those hotel shampoos and soaps and give them to homeless shelters?

f. Should you tell on someone you observe researching bomb-making on the Internet? Or on a friend having a too- friendly dinner with a woman who is not his wife?

g. Is it ethical to buy cheap seats to a baseball game you know will be sparsely attended and then sneak down and sit in the expensive seats? Similarly, is it ethical to grab open fi rst-class seats (once everyone is on board and in their pur- chased seats) when you only paid for coach?

h. Is it ethical for a homeless mother to steal a loaf of bread to feed her starving child?

i. If you scored the wrong answer on a test, and the instructor marked it correct and you very honestly let him know, is it ethical for the instructor to let you keep the points and reward your honesty?

3. Creating a Culture That People View as Fair You are a relatively new manager and times are tough at your fi rm. You know you are going to have to make some really tough decisions regarding promotions, job assignments, bonuses, and even who gets laid off and who stays. When you took your new management position two years ago, the fi rm was booming, and with ample resources to work with you thought to your- self that you would just give everyone the same rewards and schedules and anything you controlled and that would solve the problem. But now resources are scarce and you are worried that if people view your decisions as unfair you will run the risk of destroying your positive culture and even losing key people. If your goal is to create a fair workplace that is also a productive one, what should you do? What types of standards would you put in place and then how would you decide “who gets what”?

4. Being a Responsible Whistle-Blower As a manager in your fi rm, you have become disturbed with some of the claims that are being made (by people in your mar- keting and sales group) about some of your products. Although you often work with that department, you are employed in a different function and not sure if you should “stick your nose” into that area. Moreover, although you feel something of an ethical obligation to ensure that no customers are harmed by false information, you also are very concerned that blowing the whistle in this case could prompt serious repercussions and potentially be detrimental to your career, cause the loss of trust and friends in the fi rm, and even impact your family.

MANAGE WHAT?

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WALKTHROUGH xxi

Written to Be “Sticky”

Another persistent student criticism of organizational behavior coursework is that it is

too abstract or even “boring”—and given the nature of many existing texts, it is not

hard to see how students might reach that conclusion. The spirit of this book was to

infuse each chapter with examples that catch attention, strike imagination, and really

do “stick” with students as examples and guides. Such examples are sprinkled liber-

ally within the text, but there are also separate boxes labeled “Management Live” that

highlight the most vivid and engaging illustrations, stories, and short cases that bring to

life the concepts in ways meaningful and memorable to learners.

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Includes Pragmatic Tool Kits

An irrefutable aspect of applying skills is to have a good set of tools. Most executive

education seminars and corporate training programs are known for providing par-

ticipants with such tools for better conducting their work. Yet, while common-place

in many business educational settings, for some reason the notion of tools and tool

kits has not made its way into traditional college texts. This book rectifi es that omis-

sion by embedding very practical “how to” tool kits in each chapter. These tool kits

offer tangible takeaways for students through self-assessments, forms, and quick

checklists.

MANAGEMENT LIVE 1.2

The Best Places to Work Are Also the Best-Performing Companies Independent fi nancial analysts have studied the fi nancial performance of the “100 Best” companies beginning with the publication of the book The 100 Best Companies to Work for in America (by Robert Levering and Milton Moskowitz, 1994), and have accompanied that with each of the “100 Best Companies” lists from Fortune since that list’s inception in 1998. Using various profi tability indicators, these data illustrate the extent to which the pub- licly traded 100 Best Companies consistently outperform major stock indices over the 10-year periods preceding the publication of the 100 Best lists. It is notable that those companies selected for the 100 Best list generally spend far more on employee benefi ts and services than their counterparts—that is, it is often expensive to be a best place to work. However, the data clearly support that the expense is worthwhile because people ultimately engage more fully, work productively, and lift company performance.

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100 Best Companies to Work For vs. Overall Stock Market 1998–2010

Copyright © 2011 Great Place to Work ® Institute, Inc. All Rights Reserved.

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WALKTHROUGH xxiii

Responsive to Management Education Critics

Few people question the analytic capability of today’s graduating students—but the jury

is still out on their managerial and interpersonal competence. Critics of business educa-

tion are increasingly focusing on the development of OB/management skills as perhaps

the greatest gap and challenge today—and it is time to more directly and intention-

ally take on that criticism and challenge. Although sometimes characterized as being

elementary or common sense, great management is neither common nor easy, and the

existence of so many ineffective managers and toxic organizations attests to that.

With those criticisms very much in mind, the overriding goal of this text is to help

instructors inform, illuminate, and inspire. Inform students of the best and most solid

and current evidence in organizational behavior and its application to management con-

texts—never “dumbing it down” or neglecting key theory or models. Illuminate those

concepts with the most vivid and “sticky” examples and illustrations—not the tired old

examples (often from dated manufacturing contexts) that have too often defi ned OB

instruction in the past. And inspire learners by capturing and conveying the challenge

and excitement and even playfulness involved in managing and working with people—

not simply describing the concepts of the fi eld.

We hope you will join in the crusade to redefi ne OB teaching and try to foster bet-

ter-managed organizations and healthy and engaging places to work.

Tool Kit 1.2 Personal Quality Checklist 43 Building on the principles of organizational quality improvement efforts, Bernie Sergesteketter and Harry Roberts have devised a tool for self-management called the personal quality checklist (PQC). Using their approach, you defi ne desirable standards of personal behavior and performance and then keep track of failures or “defects” to meet those standards. The specifi c steps to the approach are:

1. Draw up a checklist of standards. This is the hardest part. Two samples are included at the end of this Tool Kit as illustrations (one by a practicing manager and one from a college student). Each standard should have a clear relationship to a “customer” either in the workplace or in your family or circle of friends. Each standard has to be unambiguously defi ned so you can recognize and tally a defect when it occurs. Thus, “get in shape” is not a good standard. A better standard would be to “break a sweat every day.”

There are two broad types of standards: (1) waste reducers/time savers (for example, be on time to class or group meetings), and (2) activity expanders (call parents at least once a week, get résumé com- pleted). If you include all activity expanders on your list, be sure you have enough waste reducers and time savers to create free time for them.

2. Tally your daily defects. Defects should be tallied by days but can ultimately be aggregated by weeks or months. One intriguing strategy is to let others help you keep score. For example, if a checklist standard is to talk to your spouse only in respectful tones, or spend at least a half hour with your daughter each day, then your spouse or daughter may well be the best tally keeper for those standards.

3. Review your tallies and action plan. Some people fi nd the word “defect” objectionable, but it is key to the system. First, it is easy to recognize and tally. Moreover, defects can become your friends because they suggest opportunities for improvement. Why did it occur? How can it be prevented? The whys lead to hows and suggest possible routes toward improvement.

Do not put faith in trying harder; you probably already are trying hard. Rather, fi gure out a different way to reach your objective. As the adage goes, rather than trying to be a better caterpillar, become a butterfl y.

As a general rule you should stick with 10 or fewer standards, or the process becomes unwieldy and unfo- cused. Of course, your checklist standards will only be a small fraction of your activities. Your fi rst PQC should focus on a few things you currently do that, if improved, could increase your customer satisfaction. Once you determine that you have those standards under control and customer satisfaction is high, then you can ask your colleagues and family for help in raising the bar and adding new standards. The approach is deceptively simple but powerful. Sergesteketter and Roberts report on a wide variety of successes by managers and executives from leading fi rms who have enjoyed success with the personal quality checklist approach. Draw up your own checklist and give it a try!

Sample Manager PQC

• On time for meetings

• Never need a haircut

• Answer phone in two rings

• No more than one project on desk at time

• Shoes always shined

• Weight below 190 pounds

• Exercise at least three times a week

MANAGER’S TOOL KIT

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Heard from the Workplace

One of the biggest challenges instructors face in teaching OB and management is help-

ing students understand the importance of starting now to develop their managerial

skills. Students are rightly focused on their fi rst role after college—often analyst or

individual contributor jobs that do not entail people management responsibility. But

the misnomer is that OB and management skills are not important right away. As some

recent graduates eloquently attest in their own words below, the reality is that, regard-

less of industry or job, managerial skills are a critical differentiator in the marketplace

and are important very early in careers.

“I work in a service industry where our assets are the people working for us; therefore managing them and motivating each of the team members individually is key to our success. A critical part of my job is to ensure that I inspire my team to grow and become future leaders of our business, thereby always focusing on a suc- cession plan. This ensures that our business doesn’t stagnate and continues to be a solid going concern.”

— Shradha Adnani , Media Industry

“I am now regularly trusted to manage teams of new hires joining us out of college and it happened so much earlier in my career than I ever expected. Hav- ing good management skills — so that you can lead your team to a common goal, teach them the skills they need to achieve suc- cess, and correct them when they veer astray — is just as important as your analytic competence. Once you build a high-performing team, their success makes you more valuable, and this will be evi- dent to your own managers.”

— Mason Duke , Private Equity Management

“Understanding how managers motivate and effectively utilize their subordinates is absolutely crucial for a new hire analyst. There are often situations in the workplace where your supervisor does not necessarily have your best interests in mind. This lack of support is not always malicious but can be driven by numer- ous factors, including competing priorities, upward pressure, or large spans of control. In these situations, understanding how to manage upwards is a powerful skill that can help you meet your professional objectives.”

— Ricky P. Singh , Financial Services Industry

“The managerial skills that I learned in my behavioral manage- ment class have helped to cata- pult me into a position where I continue to grow and lead, where I am also the youngest in my group. I have been able to provide an open mind, solid work ethic, and great cost benefit analysis skills that put me in a different league. I have been able to show to my co-workers that leadership isn’t always tied directly to age and experience.”

— Megan Mennel , Real Estate Industry

Heard from Past Adopters

“This text has proven ideal for my intro organizational behavior course. It blends sound theory and evidence — which I think is critical — with a practical skills ori- entation, engaging writing style, and contemporary flavor that my students really enjoy.”

— Brian Blume , University of Michigan–Flint

“[This text provides an] even mix of concept, examples, and application/action. . . . In academic circles from years past, authors seemed to believe the more theory and cases, the better. But today, it is about telling them what they need to know, showing them how to do it, and then letting them experience the material. Students will like the text. This text, as indi- cated, covers everything, but it is application-based. [It has] enough theory and concept to move you forward, but [it is a] clear applica- tion so that you can move forward sooner.”

— Stephen Peters , Clarkson College

“The focus of this text is exactly what I’ve been looking for. . . . It is more comprehensive, includes relevant research evidence for its propositions and the theories explained, and includes a truly rel- evant set of experiential exercises and examples.”

— Deborah Erdos Knapp , PhD, Kent State University

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Students can refer to the OLC for chapter reviews, self-grading quizzes, and select

premium content.

Ask your local McGraw-Hill sales representative how to gain access to the Asset

Gallery and Premium Content for your course.

Enhanced Ancillary Package

In today’s contemporary classroom, it takes more than a textbook to bring a class to life.

So the book comes complete with an entirely new set of ancillary resources designed for

students and instructors—including McGraw Hill’s innovative Connect program. Seam-

lessly integrated within the book’s pedagogy, the OLC at www.mhhe.com/baldwin2e

serves as a resource for both instructors and students. Instructors will fi nd the following

resources for each chapter in a password-protected location on the OLC:

• Comprehensive instructor’s manual that contains chapter summaries, lec- ture outlines, suggested solutions to exercises in the text, and teaching notes to help instructors utilize the Management Live, Manager’s Tool Kit, and Manage What? materials in each chapter.

• PowerPoint presentations that outline the key points, learning objec- tives, and exhibits in each chapter; the PPTs may be customized for each instructor’s needs.

• Test banks that challenge students’ application of the concepts cov- ered in the text through multiple-choice, true-false, short-answer, and essay questions; each test bank question is tagged according to learning objective, Bloom’s Taxonomy, AACSB guidelines, and level of diffi culty.

• Interactive components in the form of the Asset Gallery (Manager’s Hot- Seat videos, Self-Assessments, and Test Your Knowledge exercises) and suggested videos to accompany each chapter.

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xxvi

ACKNOWLEDGMENTS

No set of authors ever really endeavors to write a book by themselves, and we are grateful to so many people who have had a hand in helping this text come to life. Among those we would particularly like to recognize are Halden Williams and Corey Gallon, two young consulting stars at PricewaterhouseCoopers (Corey has since taken a promotion elsewhere) for their immense help in uncovering contemporary business cases that demonstrate how the concepts in the book are being used by progressive organizations worldwide. We are also indebted to Bob Marx of the University of Massachusetts and Mark Wellman at the University of Maryland for their excellent recommendations of cases, videos, and materials. Both Bob and Mark are widely acclaimed master teachers and we are fortunate to have their contributions to our text package.

All of our institutions are special places and we are indebted to many col- leagues who have directly or indirectly contributed to this project. At Kelley, special thanks to Steve Whiting, Brian Blume (now at University of Michigan –Flint) and Jason Pierce who have all used the fi rst edition of this book in their own classes and subsequently provided insights and feedback that have been instrumental in this new edition. Tim Baldwin would also like to acknowledge Al Oak, Fred Green, Denny Southerland, Bruce Breeden, and his many other great friends and colleagues at Cripe Architects and Engineers. He treasures that association, and many lessons from his connection there are incorporated into this text.

At Fresno State, special thanks to Jim Schmidtke, Brian Lyons (now at Wright State), Jill Bradley-Geist, and Rudy Sanchez for their insights and obser- vations that have improved various aspects of the second edition. At DePaul, special thanks to Pat Werhane and Laura Hartman for providing access to their perfected course materials on business ethics. Thanks also to colleagues Ken Thompson, Erich Dierdorff, Alyssa Westring, Stephanie Dorn, Ray Coye, and Patricia Spencer for their many hall conversations that helped to inform the development of this book.

We are all indebted to John Weimeister, Jane Beck, Diane Nowaczyk, Anke Weeks, and Michelle Heaster of McGraw-Hill, who have supported this project with zeal and who love the author team more than ice cream.

A hearty thanks to you all! We also gratefully acknowledge a sterling set of reviewers who include:

Valerie Atherley Suffolk University

Forrest Aven University of Houston, Downtown

Erica Berte Indiana University–Purdue University, Columbus Center

Scott Bryant Montana State University

Marian Crawford University of Arkansas, Little Rock

George De Feis Iona College

Beverly Dennis Alaska Pacifi c University

Megan Endres Eastern Michigan University

Mamdouh Farid Hofstra University

Ann Fischer University of Pennsylvania

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xxviiACKNOWLEDGMENTS

Allen Frazier Harding University

Mahmoud Gaballa Mansfi eld University

Javier Garza Cerritos College

Michele Gee University of Wisconsin, Parkside

Barry Gold Pace University, NYC

Joan Hartley Portland Community College

Merrily Joy Hoffman San Jacinto College Central

Melissa Houlette College of Mt. Saint Joseph

John Humphreys Texas A&M University, Commerce

Sharron Hunter-Rainey North Carolina Central University

Uma Iyer Austin Peay State University

John Jemison Southwestern Assemblies of God University

Sirkwoo Jin Merrimack College

Camille Johnson San Jose State University

Paul Johnson Western Carolina University

Dorothy Kirkman University of Houston, Clear Lake

Mary Beth Klinger College of Southern Maryland

Jack Kondrasuk University of Portland

Arlene Kreinik Western Connecticut State University

Don Larsen Montana State University, Billings

Marc Lavine University of Massachusetts, Boston

Lee Lee Central Connecticut State University

David Maddox Regis University

Kimberly Melinsky College of St. Rose

Frances McDonald Nova Community College, Annandale

Christine Miller Tennessee Tech University

Tracy Miller University of Dayton

Leann Mischel Susquehanna University

Rakesh Mittal New Mexico State University, Las Cruces

Lam Dang Nguyen Palm Beach State College

David Nino University of Houston, Downtown

Gianna Phillips Golden Gate University

Emily Porschitz Keene State College

Rosemarie Reynolds Embry Riddle Aero University, Daytona Beach

DeShawn Robinson-Chew Nova Community College, Woodbridge

Nancy Rossiter Jacksonville University

Golnaz Sadri California State University

Christy Shell Houston Community College, Northwest College

Art Shriberg Xavier University

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xxviii ACKNOWLEDGMENTS

Paula Silva California State University, Fullerton

C. Mike Smith Roanoke College

George Smith Albright College

Chester Spell Rutgers University, Camden

Shane Spiller Western Kentucky University

Gil Taran Carnegie Mellon University

Pat Thompson Virginia Commonwealth University

Neil Tocher Idaho State University

Tyra Townsend University of Pittsburgh

William Turnley Kansas State University

Anthony Urban Rutgers University, Camden

Alix Valenti University of Houston, Clear Lake

John Watt University of Central Arkansas

Barbara Wech University of Alabama, Birmingham

Joann White Jackson State University

Robert Yamaguchi Fullerton College

John Yudelson California State University, Channel Islands

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xxix

BRIEF CONTENTS

About the Authors vi Preface viii Walkthrough xix Acknowledgments xxvi

PART ONE Personal Skills

1 Organizational Behavior and Your Personal Effectiveness 2 2 Managing Stress and Time 40 3 Solving Problems 76

4 Making Ethical Decisions 118

PART TWO Interpersonal Skills

5 Communication 156 6 Motivating Others 194 7 Managing Employee Performance 236 8 Using Power and Infl uence 272 9 Leading Others 308

PART THREE Group and Organizational Skills

10 Team Effectiveness 340 11 Resolving Confl ict Through Negotiation and Mediation 376 12 Recruiting, Selecting, and Retaining Talent 416 13 Culture and Diversity 446 14 Making Change 494

Endnotes 534 Glossary 554 Index 564

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CONTENTS

About the Authors vi

Preface viii

Walkthrough xix

Acknowledgments xxvi

1 PART ONE PERSONAL SKILLS

MANAGE WHAT? 4 Making the Business Case for People Management

Skills 4 Using OB Evidence Instead of Just Intuition 4 Making a Personal Improvement 4 Describing Yourself and Your Style: Expanding Your

Self-Awareness 4

INTRODUCTION 4 Success Through People Management 6 Playing for Keeps: Getting Serious About OB Right

Now 10 Becoming a Great People-Manager 12

CHAPTER 1 Organizational Behavior and Your Personal Effectiveness Learning About Organizational Behavior Is Hard 14

LEARNING AND PERSONAL IMPROVEMENT 19 Personal Effectiveness: The Foundation of Great

Management 19 A Model of Self-Management 22

BUILDING SELF-AWARENESS 27 Self-Awareness: The Key to Successful Learning and

Growth 27 Individual Differences and Their Importance 27

CONCLUDING NOTE 34

2 MANAGE WHAT? 42 Getting a Priority Done Under Stress 42 Overcoming the Two Biggest Time Management Traps 42 Minimizing Your Chances of Choking in a Pressure Situation 42 Making Changes in a Workplace to Lower Stress and Enhance (Not Lower) Productivity 42 INTRODUCTION 42

Personal and Organizational Consequences of Stress 44

Some Stress Is Good 44 Stress Is Personal: Individual Differences and Their

Relationship to Stress 45

COMMON SOURCES AND CAUSES OF STRESS 48 Traumatic Events vs. Daily Hassles 48 Role Confl ict and Ambiguity 49 Exhaustion of Resources and Burnout 50 Emotional Labor 51 High Demands and Low Control 52

CHAPTER 2 Managing Stress and Time STRESS MANAGEMENT STRATEGIES 53

The Importance of Matching Strategies with Causes 53

Prevention Strategies 54 Avoiding Choking 56 Coping Strategies 59 Outlets for Relief/Dealing with Stress in the

Moment 61

TIME MANAGEMENT FUNDAMENTALS 62 First Be Effective, Then Be Effi cient 62 Plan the Work, Then Work the Plan 66 Know Yourself and Your Time Use 67 Fight Procrastination 68

WORKPLACE CULTURES THAT FOSTER HIGH PERFORMANCE WITH LOWER STRESS 69

CONCLUDING NOTE 71

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CONTENTS xxxi

3 MANAGE WHAT? 78 Defi ning and Structuring a Vague Problem 78 Avoiding Common Decision Errors 78 Excelling in a Case Interview 79 Learning from Past Decisions 79 INTRODUCTION 79 THE CHALLENGE OF PROBLEM SOLVING 79 WHY SMART PEOPLE MAKE BAD DECISIONS 80

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