Human resource management mondy 14th edition pdf

Org Behaviour

Assign-

Chapter 4: Emotions and Moods

Learning Objectives:

Differentiate between emotions and moods.
Identify the sources of emotions and moods.
Show the impact emotional labor has on employees.
Describe affective events theory and its applications.
Describe emotional intelligence.
Identify strategies for emotion regulation.
Apply concepts about emotions and moods to specific OB issues.
Chapter 5: Personality and Values

Learning Objectives:

Describe personality, the way it is measured, and the factors that shape it.
Describe the Myers-Briggs Type Indicator (MBTI) personality framework and the Big Five model,
Discuss how the concepts of core self-evaluation (CSE), self-monitoring, and proactive personality contribute to the understanding of personality.
Describe how the situation affects whether personality predicts behavior.
Contrast terminal and instrumental values.
Describe the differences between person-job fit and person-organization fit.
Identify Hofstede’s five value dimensions and the Global Leadership and Organizational Behavior Effectiveness
Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.

Also, provide a graduate-level response to each of the following questions:

At what time of day are people in the best mood? Describe how mood changes throughout the day.
Some might argue that emotional regulation is an unethical behavior. Why might someone take this position?
[Post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review].BE) framework.

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F o u r t e e n t h E d i t i o n

Essentials of Organizational Behavior

Stephen P. Robbins San Diego State University

Timothy A. Judge The Ohio State University

New York, NY

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Library of Congress Cataloging-in-Publication Data Names: Robbins, Stephen P., author. | Judge, Tim, author. Title: Essentials of organizational behavior / Stephen P. Robbins, San Diego State University, Timothy A. Judge, University of Notre Dame. Description: Fourteen edition. | Boston : Pearson Education, [2016] | Includes index. Identifiers: LCCN 2016022886 (print) | LCCN 2016034760 (ebook) | ISBN 9780134523859 (pbk. : alk. paper) | ISBN 9780134527314 Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .R6 2017 (print) | LCC HD58.7 (ebook) | DDC 658.3––dc23 LC record available at https://lccn.loc.gov/2016022886

10 9 8 7 6 5 4 3 2 1

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This book is dedicated to our friends and colleagues in The Organizational Behavior Teaching Society

who, through their teaching, research and commitment to the leading process, have significantly

improved the ability of students to understand and apply OB concepts.

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BRIEF CONTENTS

PART 1 Understanding Yourself and Others 1

Chapter 1 What Is Organizational Behavior? 1 Chapter 2 Diversity in Organizations 17 Chapter 3 Attitudes and Job Satisfaction 34 Chapter 4 Emotions and Moods 47 Chapter 5 Personality and Values 64

PART 2 Making and Implementing Decisions 82

Chapter 6 Perception and Individual Decision Making 82 Chapter 7 Motivation Concepts 100 Chapter 8 Motivation: From Concepts to Applications 120

PART 3 Communicating in Groups and Teams 136

Chapter 9 Foundations of Group Behavior 136 Chapter 10 Understanding Work Teams 154 Chapter 11 Communication 170

PART 4 Negotiating Power and Politics 186

Chapter 12 Leadership 186 Chapter 13 Power and Politics 207 Chapter 14 Conflict and Negotiation 226

PART 5 Leading, Understanding, and Transforming the Organization System 245

Chapter 15 Foundations of Organization Structure 245 Chapter 16 Organizational Culture 265 Chapter 17 Organizational Change and Stress Management 285

vi

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vii

CONTENTS

Preface xxii

Acknowledgments xxix

About the Authors xxx

PART 1 Understanding Yourself and Others 1

Chapter 1 WHAT IS ORGANIZATIONAL BEHAVIOR? 1 Chapter Warm-up 1

Management and Organizational Behavior 2

Organizational Behavior (OB) Defined 3 Effective versus Successful Managerial Activities 3

Watch It—Herman Miller: Organizational Behavior 4

Complementing Intuition with Systematic Study 4

Big Data 5 Disciplines That Contribute to the OB Field 6

Psychology 6 Social Psychology 6 Sociology 7 Anthropology 7

There Are Few Absolutes in OB 7

Challenges and Opportunities for OB 8

Continuing Globalization 8 Workforce Demographics 10 Workforce Diversity 10 Social Media 10 Employee Well-Being at Work 11 Positive Work Environment 11 Ethical Behavior 12

Coming Attractions: Developing an OB Model 12

Overview 12 Inputs 13 Processes 13 Outcomes 14

Summary 15 Implications for Managers 15 Personal Inventory Assessments: Multicultural Awareness Scale 16

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viii Contents

Chapter 2 DIVERSITY IN ORGANIZATIONS 17 Chapter Warm-up 17

Diversity 17

Demographic Characteristics 18 Levels of Diversity 18

Discrimination 19

Stereotype Threat 19 Discrimination in the Workplace 20

Biographical Characteristics 21

Age 21 Sex 22 Race and Ethnicity 23 Disabilities 23 Hidden Disabilities 24

Other Differentiating Characteristics 25

Religion 25 Sexual Orientation and Gender Identity 25 Cultural Identity 27

Watch It—Verizon: Diversity 27 Ability 27

Intellectual Abilities 27 Physical Abilities 29

Implementing Diversity Management Strategies 29

Attracting, Selecting, Developing, and Retaining Diverse Employees 30 Diversity in Groups 31 Diversity Programs 32

Summary 32 Implications for Managers 33 Try It—Simulation: Human Resources 33 Personal Inventory Assessments: Intercultural Sensitivity Scale 33

Chapter 3 ATTITUDES AND JOB SATISFACTION 34 Chapter Warm-up 34

Attitudes 34

Watch It—Gawker Media: Attitudes and Job Satisfaction 36 Attitudes and Behavior 36

Job Attitudes 37

Job Satisfaction and Job Involvement 37

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Organizational Commitment 37 Perceived Organizational Support 37 Employee Engagement 38

Measuring Job Satisfaction 38

Approaches to Measurement 39 Measured Job Satisfaction Levels 39

What Causes Job Satisfaction? 39

Job Conditions 40 Personality 41 Pay 41 Corporate Social Responsibility (CSR) 41

Outcomes of Job Satisfaction 42

Job Performance 42 Organizational Citizenship Behavior (OCB) 42 Customer Satisfaction 42 Life Satisfaction 43

The Impact of Job Dissatisfaction 43

Counterproductive Work Behavior (CWB) 43 Understanding the Impact 45

Summary 46 Implications for Managers 46 Try It—Simulation: Attitudes & Job Satisfaction 46 Personal Inventory Assessments: Core Self-Evaluation (CSE) Scale 46

Chapter 4 EMOTIONS AND MOODS 47 Chapter Warm-up 47

What Are Emotions and Moods? 47

The Basic Emotions 48 Moral Emotions 49 The Basic Moods: Positive and Negative Affect 49 Experiencing Moods and Emotions 50 The Function of Emotions 50

Sources of Emotions and Moods 51

Personality 52 Time of Day 52 Day of the Week 52 Weather 52 Stress 54 Sleep 54

Contents ix

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Exercise 54 Age 54 Sex 54

Emotional Labor 55

Controlling Emotional Displays 55 Emotional Dissonance and Mindfulness 56

Affective Events Theory 56

Emotional Intelligence 56

Emotion Regulation 58

Emotion Regulation Influences and Outcomes 58 Emotion Regulation Techniques 58 Ethics of Emotion Regulation 59

Watch It—East Haven Fire Department: Emotions and Moods 59

OB Applications of Emotions and Moods 59

Selection 59 Decision Making 60 Creativity 60 Motivation 60 Leadership 60 Customer Service 61 Job Attitudes 61 Deviant Workplace Behaviors 61 Safety and Injury at Work 62

Summary 62 Implications for Managers 62 Try It—Simulation: Emotions & Moods 63 Personal Inventory Assessments: Emotional Intelligence Assessment 63

Chapter 5 PERSONALITY AND VALUES 64 Chapter Warm-up 64

Personality 64

What Is Personality? 65 Personality Frameworks 66

The Myers-Briggs Type Indicator 66 The Big Five Personality Model 67 How Do the Big Five Traits Predict Behavior at Work? 68 The Dark Triad 69

Other Personality Attributes Relevant to OB 71

Core Self-Evaluation (CSE) 71

x Contents

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Self-Monitoring 72 Proactive Personality 72

Personality and Situations 72

Situation Strength Theory 73 Trait Activation Theory 74

Values 75

Watch It—Honest Tea: Ethics–Company Mission and Values 75

Terminal versus Instrumental Values 75 Generational Values 76

Linking an Individual’s Personality and Values to the Workplace 76

Person–Job Fit 76 Person–Organization Fit 77 Other Dimensions of Fit 77

Cultural Values 78

Hofstede’s Framework 78 The GLOBE Framework 79 Comparison of Hofstede’s Framework and the Globe Framework 79

Summary 81 Implications for Managers 81 Personal Inventory Assessments: Personality Style Indicator 81

PART 2 Making and Implementing Decisions 82

Chapter 6 PERCEPTION AND INDIVIDUAL DECISION MAKING 82 Chapter Warm-up 82

What Is Perception? 82

Factors That Influence Perception 83 Watch It—Orpheus Group Casting: Social Perception and Attribution 84

Person Perception: Making Judgments about Others 84

Attribution Theory 84 Common Shortcuts in Judging Others 86

The Link between Perception and Individual Decision Making 87

Decision Making in Organizations 87

The Rational Model, Bounded Rationality, and Intuition 87

Contents xi

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Common Biases and Errors in Decision Making 89 Influences on Decision Making: Individual Differences and Organizational Constraints 91

Individual Differences 92 Organizational Constraints 93

What about Ethics in Decision Making? 93

Three Ethical Decision Criteria 94 Choosing between Criteria 94 Behavioral Ethics 95 Lying 95

Creativity, Creative Decision Making, and Innovation in Organizations 95

Creative Behavior 96 Causes of Creative Behavior 96 Creative Outcomes (Innovation) 98

Summary 98 Implications for Managers 98 Try It—Simulation: Perception & Individual Decision Making 99 Personal Inventory Assessments: How Creative Are You? 99

Chapter 7 Motivation ConCepts 100 Chapter Warm-up 100

Motivation 100

Watch It—Motivation (TWZ Role Play) 101

Early Theories of Motivation 101

Hierarchy of Needs Theory 101 Two-Factor Theory 102 McClelland’s Theory of Needs 102

Contemporary Theories of Motivation 104

Self-Determination Theory 104 Goal-Setting Theory 105

Other Contemporary Theories of Motivation 108

Self-Efficacy Theory 108 Reinforcement Theory 110 Equity Theory/Organizational Justice 111 Expectancy Theory 115

Job Engagement 116

Integrating Contemporary Theories of Motivation 116

xii Contents

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Summary 118 Implications for Managers 118 Try It—Simulation: Motivation 118 Personal Inventory Assessments: Work Motivation Indicator 119

Chapter 8 MOTIVATION: FROM CONCEPTS TO APPLICATIONS 120 Chapter Warm-up 120

Motivating by Job Design: The Job Characteristics Model (JCM) 121

Elements of the JCM 121 Efficacy of the JCM 121 Motivating Potential Score (MPS) 122 Cultural Generalizability of the JCM 123

Using Job Redesign to Motivate Employees 123

Job Rotation 123 Relational Job Design 124

Using Alternative Work Arrangements to Motivate Employees 124

Flextime 125 Job Sharing 126 Telecommuting 127

Using Employee Involvement and Participation (EIP) to Motivate Employees 127

Cultural EIP 128 Forms of Employee Involvement Programs 128

Using Extrinsic Rewards to Motivate Employees 129

What to Pay: Establishing a Pay Structure 129 How to Pay: Rewarding Individual Employees through Variable-Pay Programs 129

Using Benefits to Motivate Employees 133

Using Intrinsic Rewards to Motivate Employees 133

Watch It—ZAPPOS: Motivating Employees through Company Culture 134

Summary 134 Implications for Managers 135 Try It—Simulation: Extrinsic & Intrinsic Motivation 135 Personal Inventory Assessments: Diagnosing the Need for Team Building 135

Contents xiii

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xiv Contents

PART 3 Communicating in Groups and Teams 136

Chapter 9 FOUNDATIONS OF GROUP BEHAVIOR 136 Chapter Warm-up 136

Groups and Group Identity 137

Social Identity 137 Ingroups and Outgroups 137

Stages of Group Development 138

Watch It—Witness.org: Managing Groups & Teams 138

Group Property 1: Roles 139

Role Perception 140 Role Expectations 140 Role Conflict 140

Group Property 2: Norms 140

Norms and Emotions 141 Norms and Conformity 141 Norms and Behavior 142 Positive Norms and Group Outcomes 142 Negative Norms and Group Outcomes 143 Norms and Culture 144

Group Property 3: Status, and Group Property 4: Size 144

Group Property 3: Status 144 Group Property 4: Size 146

Group Property 5: Cohesiveness, and Group Property 6: Diversity 146

Group Property 5: Cohesiveness 147 Group Property 6: Diversity 147

Group Decision Making 149

Groups versus the Individual 149 Groupthink 150 Groupshift or Group Polarization 151 Group Decision-Making Techniques 151

Summary 152 Implications for Managers 153 Try It—Simulation: Group Behavior 153 Personal Inventory Assessments: Communicating Supportively 153

Chapter 10 UNDERSTANDING WORK TEAMS 154 Chapter Warm-up 154

Why Have Teams Become so Popular? 154

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Differences between Groups and Teams 155

Types of Teams 156

Problem-Solving Teams 156 Self-Managed Work Teams 156 Cross-Functional Teams 157 Virtual Teams 158 Multiteam Systems 158

Watch It—Teams (TWZ Role Play) 159

Creating Effective Teams 159

Team Context: What Factors Determine Whether Teams Are Successful? 160 Team Composition 161 Team Processes 164

Turning Individuals into Team Players 166

Selecting: Hiring Team Players 167 Training: Creating Team Players 167 Rewarding: Providing Incentives to Be a Good Team Player 167

Beware! Teams Aren’t Always the Answer 168 Summary 168 Implications for Managers 168 Try It—Simulation: Teams 169 Personal Inventory Assessments: Team Development Behaviors 169

Chapter 11 COMMUNICATION 170 Chapter Warm-up 170

Communication 171

Functions of Communication 171 The Communication Process 172

Direction of Communication 172

Downward Communication 173 Upward Communication 173 Lateral Communication 173 Formal Small-Group Networks 174 The Grapevine 174

Modes of Communication 175

Oral Communication 175 Written Communication 176 Nonverbal Communication 176

Contents xv

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xvi Contents

Choice of Communication Channel 176

Channel Richness 176 Choosing Communication Methods 177 Information Security 178

Persuasive Communication 178

Automatic and Controlled Processing 178 Tailoring the Message 179

Barriers to Effective Communication 180

Filtering 180 Selective Perception 180 Information Overload 180 Emotions 181 Language 181 Silence 181 Communication Apprehension 181 Lying 182

Cultural Factors 182

Cultural Barriers 182 Cultural Context 183 A Cultural Guide 183

Watch It—Communication (TWZ Role Play) 184 Summary 184 Implications for Managers 185 Try It—Simulation: Communication 185 Personal Inventory Assessments: Communication Styles 185

PART 4 Negotiating Power and Politics 186

Chapter 12 LEADERSHIP 186 Chapter Warm-up 186

Watch It—Leadership (TWZ Role Play) 186

Trait Theories of Leadership 187

Personality Traits and Leadership 187 Emotional Intelligence (EI) and Leadership 188

Behavioral Theories 188

Initiating Structure 188 Consideration 189 Cultural Differences 189

Contingency Theories 189

The Fiedler Model 189

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Situational Leadership Theory 191 Path–Goal Theory 191 Leader–Participation Model 192

Contemporary Theories of Leadership 192

Leader–Member Exchange (LMX) Theory 192 Charismatic Leadership 194 Transactional and Transformational Leadership 196

Responsible Leadership 199

Authentic Leadership 199 Ethical Leadership 200 Servant Leadership 200

Positive Leadership 201

Trust 201 Mentoring 203

Challenges to Our Understanding of Leadership 203

Leadership as an Attribution 203 Substitutes for and Neutralizers of Leadership 204 Online Leadership 205

Summary 205 Implications for Managers 205 Try It—Simulation: Leadership 206 Personal Inventory Assessments: Ethical Leadership Assessment 206

Chapter 13 POWER AND POLITICS 207 Chapter Warm-up 207

Watch It—Power and Political Behavior 207

Power and Leadership 208

Bases of Power 208

Formal Power 208 Personal Power 209 Which Bases of Power Are Most Effective? 210

Dependence: The Key to Power 210

The General Dependence Postulate 210 What Creates Dependence? 210 Social Network Analysis: A Tool for Assessing Resources 211

Power Tactics 212

Using Power Tactics 212

Contents xvii

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xviii Contents

Cultural Preferences for Power Tactics 213 Applying Power Tactics 214

How Power Affects People 214

Power Variables 214 Sexual Harassment: Unequal Power in the Workplace 215

Politics: Power in Action 216

Definition of Organizational Politics 216 The Reality of Politics 216

Causes and Consequences of Political Behavior 217

Factors Contributing to Political Behavior 217 How Do People Respond to Organizational Politics? 219 Impression Management 220 The Ethics of Behaving Politically 222 Mapping Your Political Career 223

Summary 224 Implications for Managers 225 Try It—Simulation: Power & Politics 225 Personal Inventory Assessments: Gaining Power and Influence 225

Chapter 14 ConfliCt and negotiation 226 Chapter Warm-up 226

A Definition of Conflict 226

Types of Conflict 228 Loci of Conflict 229

The Conflict Process 229

Stage I: Potential Opposition or Incompatibility 230 Stage II: Cognition and Personalization 231 Stage III: Intentions 231 Stage IV: Behavior 232 Stage V: Outcomes 233

Watch It—Gordon Law Group: Conflict and Negotiation 235

Negotiation 235

Bargaining Strategies 235 The Negotiation Process 237

Individual Differences in Negotiation Effectiveness 239

Negotiating in a Social Context 241

Reputation 241 Relationships 242

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Third-Party Negotiations 242 Summary 243 Implications for Managers 243 Personal Inventory Assessments: Strategies for Handling Conflict 244

PART 5 Leading, Understanding, and Transforming the Organization System 245

Chapter 15 FOUndATiOnS OF ORgAnizATiOn STRUCTURe 245 Chapter Warm-up 245 What Is Organizational Structure? 246

Work Specialization 246 Departmentalization 247 Chain of Command 248 Span of Control 249 Centralization and Decentralization 250 Formalization 251 Boundary Spanning 251

Common Organizational Frameworks and Structures 252

The Simple Structure 252 The Bureaucracy 253 The Matrix Structure 254

Alternate Design Options 255

The Virtual Structure 255 The Team Structure 256 The Circular Structure 257

The Leaner Organization: Downsizing 257 Why Do Structures Differ? 258

Organizational Strategies 258 Organization Size 260 Technology 260 Environment 260 Institutions 261

Organizational Designs and Employee Behavior 262 Work Specialization 262 Span of Control 262 Centralization 263 Predictability versus Autonomy 263 National Culture 263

Watch It—ZipCar: Organizational Structure 263

Contents xix

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xx Contents

Summary 263 Implications for Managers 264 Try It—Simulation: Organizational Structure 264 Personal Inventory Assessments: Organizational Structure Assessment 264

Chapter 16 ORGANIZATIONAL CULTURE 265 Chapter Warm-up 265

Watch It—Organizational Culture (TWZ Role Play) 265

What Is Organizational Culture? 266

A Definition of Organizational Culture 266 Do Organizations Have Uniform Cultures? 266 Strong versus Weak Cultures 267 Culture versus Formalization 268

What Do Cultures Do? 268

The Functions of Culture 268 Culture Creates Climate 269 The Ethical Dimension of Culture 269 Culture and Sustainability 270 Culture and Innovation 271 Culture as an Asset 271 Culture as a Liability 272

Creating and Sustaining Culture 273

How a Culture Begins 273 Keeping a Culture Alive 274 Summary: How Organizational Cultures Form 276

How Employees Learn Culture 276

Stories 277 Rituals 277 Symbols 277 Language 278

Influencing an Organizational Culture 278

An Ethical Culture 278 A Positive Culture 279 A Spiritual Culture 280

The Global Context 282 Summary 283 Implications for Managers 283 Try It—Simulation: Organizational Culture 283 Personal Inventory Assessments: Organizational Structure Assessment 284

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Chapter 17 ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT 285 Chapter Warm-up 285

Change 285

Forces for Change 286 Reactionary versus Planned Change 286

Resistance to Change 287

Overcoming Resistance to Change 287 The Politics of Change 289

Approaches to Managing Organizational Change 290

Lewin’s Three-Step Model 290 Kotter’s Eight-Step Plan 290 Action Research 291 Organizational Development 291

Creating a Culture for Change 293

Managing Paradox 293 Stimulating a Culture of Innovation 294 Creating a Learning Organization 295 Organizational Change and Stress 296

Watch It—East Haven Fire Department: Managing Stress 296

Stress at Work 296

What Is Stress? 297 Potential Sources of Stress at Work 298 Individual Differences in Stress 300 Cultural Differences 301

Consequences of Stress at Work 301

Managing Stress 302

Individual Approaches 302 Organizational Approaches 303

Summary 304 Implications for Managers 305 Try It—Simulation: Change 305 Personal Inventory Assessments: Tolerance of Ambiguity Scale 305

Epilogue 306 Endnotes 307 Glossary 354 Index 363

Contents xxi

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PREFACE

This book was created as an alternative to the 600- or 700-page comprehensive text in organizational behavior (OB). It attempts to provide balanced coverage of all the key elements comprising the discipline of OB in a style that readers will find both informa- tive and interesting. We’re pleased to say that this text has achieved a wide following in short courses and executive programs as well as in traditional courses as a companion volume to experiential, skill development, case, and readings books. It is currently used at more than 500 colleges and universities in the United States, Canada, Latin America, Europe, Australia, and Asia. It’s also been translated into Spanish, Portuguese, Japanese, Chinese, Dutch, Polish, Turkish, Danish, and Bahasa Indonesian.

KEY CHANGES FOR THE FOURTEENTH EDITION

• Increased content coverage was added to include updated research, relevant discus- sion, and new exhibits on current issues of all aspects of organizational behavior.

• Increased integration of contemporary global issues was added into topic discussions.

• Extensive reorganization of all chapters with new headings and subsections to make navigating the print and digital versions of the text easier and bring important content to the fore.

• Increased cross-references between chapters to link themes and concepts for the student’s quick access and to provide a more in-depth understanding of topics.

• New assisted and auto-graded questions that students can complete and submit via MyManagementLab are provided for each chapter.

• A new feature, Try It, has been added to 14 chapters to direct the student’s attention to MyManagementLab simulations specific to the content in the text.

RETAINED FROM THE PREVIOUS EDITION

What do people like about this book? Surveys of users have found general agree- ment about the following features. Needless to say, they’ve all been retained in this edition.

• Length. Since its inception in 1984, we’ve tried diligently to keep this book in the range of 325 to 400 pages. Users tell us this length allows them considerable flex- ibility in assigning supporting materials and projects.

• Balanced topic coverage. Although short in length, this book continues to provide balanced coverage of all the key concepts in OB. This includes not only traditional topics such as personality, motivation, and leadership but also cutting-edge issues such as emotions, diversity, negotiation, and teamwork.

• Writing style. This book is frequently singled out for its fluid writing style and extensive use of examples. Users regularly tell us that they find this book “conversational,” “interesting,” “student friendly,” and “very clear and understandable.”

xxii

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• Practicality. This book has never been solely about theory. It’s about using theory to better explain and predict the behavior of people in organizations. In each edi- tion of this book, we have focused on making sure that readers see the link between OB theories, research, and implications for practice.

• Absence of pedagogy. Part of the reason we’ve been able to keep this book short in length is that it doesn’t include review questions, cases, exercises, or similar teach- ing/learning aids. It continues to provide only the basic core of OB knowledge, al- lowing instructors the maximum flexibility in designing and shaping their courses.

• Integration of globalization, diversity, and ethics. The topics of globalization and cross-cultural differences, diversity, and ethics are discussed throughout this book. Rather than being presented only in separate chapters, these topics have been wo- ven into the context of relevant issues. Users tell us they find that this integrative approach makes these topics more fully part of OB and reinforces their importance.

• Comprehensive supplements. Although this book may be short in length, it’s not short on supplements. It comes with a complete, high-tech support package for both faculty and students. Instructors are provided with a comprehensive Instructor’s Manual and Test Bank, TestGenerator, and PowerPoint slides. The MyManagement- Lab course provides both instructors and students with various types of assessments, video exercises, decision-making simulations, and Personal Inventory Assessments.

CHAPTER-BY-CHAPTER CHANGES

Chapter 1: What Is Organizational Behavior?

• New content: Effective versus Successful Managerial Activities; Current Usage of, New Trends in, and Limitations of Big Data; Workforce Demographics; Social Media; and Inputs, Processes, and Outcomes of our General Model of Organiza- tional Behavior

• Newly revised sections: Management and Organizational Behavior • New research incorporated in the following areas: Introduction to Organiza-

tional Behavior, Big Data, Adapting to Differing Cultural and Regulatory Norms, Positive Work Environments, and Ethical Behavior

• New features: Watch It (Herman Miller: Organizational Behavior) and Personal Inventory Assessments (Multicultural Awareness Scale)

Chapter 2: Diversity in Organizations

• New content: Stereotype Threat and Hidden Disabilities • Newly revised sections: Learning Objectives, Demographic Characteristics,

Discrimination, Implementing Diversity Management Strategies, and Implications for Managers

• New research incorporated in the following areas: Discrimination in the Workplace; Biographical Characteristics, including Age, Sex, Race, and Ethnic- ity; Disabilities; the Wonderlic Intellectual Ability Test; Diversity in Groups; and International Research on Religion, Sexual Orientation, Gender Identity, and Physical Abilities

Preface xxiii

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• New features: Personal Inventory Assessments (Intercultural Sensitivity Scale), Watch It (Verizon: Diversity), and Try It (Simulation: Human Resources)

Chapter 3: Attitudes and Job Satisfaction

• New content: The Causes of Job Satisfaction, including Job Conditions, Personal- ity, Pay, and Corporate Social Responsibility; Life Satisfaction as an Outcome of Job Satisfaction; and Counterproductive Work Behavior (CWB) as an Outcome of Job Dissatisfaction

• Newly revised sections: Learning Objectives and Implications for Managers • New research incorporated in the following areas: Attitudes and Behavior, Em-

ployee Engagement, Measured Job Satisfaction Levels, How Satisfied Are People in Their Jobs, and Organizational Citizenship Behavior (OCB) as an Outcome of Job Satisfaction

• New features: Watch It (Gawker Media: Attitudes and Job Satisfaction), Personal Inventory Assessments [Core Self-Evaluation (CSE) Scale], and Try It (Simulation: Attitudes & Job Satisfaction)

Chapter 4: Emotions and Moods

• New content: Moral Emotions; the Functions of Emotions, including Whether or Not Emotions Make Us Ethical; Emotion Regulation Influences, Outcomes, and Techniques; and the Ethics of Emotion Regulation

• Newly revised sections: Learning Objectives, Time of the Day as a Source of Emotions and Moods, Implications for Managers

• New research incorporated in the following areas: Stress, Sleep, Age, and Sex as Sources of Emotions and Moods; Controlling Emotional Displays; Emotional Intelligence; Safety and Injury at Work as Outcomes of Emotions and Moods; and International Research on the Basic Emotions, Experiencing Moods, and Emo- tions, as well as on the Day of the Week and Weather as Sources of Emotions and Moods

• New features: Personal Inventory Assessments (Emotional Intelligence Assess- ment) and Try It (Simulation: Emotions & Moods)

Chapter 5: Personality and Values

• New content: Whether or Not the Big Five Personality Traits Predict Behavior at Work, Other Dark-Side Traits, and Other Dimensions of Fit

• Newly revised sections: Learning Objectives, Personality Frameworks, the Myers- Briggs Type Indicator, Cultural Values, Summary, and Implications for Managers

• New research incorporated in the following areas: Describing Personality; the Big Five Personality Model; the Dark Triad, Proactive Personality; Organiza- tional Situations, Generational Values; Person–Organization Fit; and International Research on Measuring Personality, Narcissism, and Person–Job Fit

• New features: Watch It (Honest Tea: Ethics—Company Mission and Values), and Personality Inventory Assessment (Personality Style Indicator)

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Chapter 6: Perception and Individual Decision Making

• New content: The Perceiver, Target, and Context as Factors That Influence Percep- tion, Randomness Error; Nudging as an Influence on Decision Making; Choosing between the Three Ethical Decision Criteria; Lying and Ethical Decision Making; and Ethics and Creativity

• Newly revised sections: Learning Objectives, the Halo Effect, Escalation of Com- mitment, Creative Potential, and Implications for Managers

• New research incorporated in the following areas: Person Perception: Making Judg- ments about Others; Attribution Theory; the Link between Perception and Individual Decision Making; Gender as an Influence on Decision Making; Creative Behavior; Intelligence, Personality, and Expertise as Causes of Creative Behavior; the Creative Environment; and International Research on the Three Ethical Decision Criteria

• New features: Watch It (Orpheus Group Casting: Social Perception and Attribu- tion), Try It (Simulation: Perception & Individual Decision Making), and Personal Inventory Assessments (How Creative Are You?)

Chapter 7: Motivation Concepts

• New content: Goal-Setting and Ethics, Reinforcement Theory, Influencing Self- Efficacy in Others, Ensuring Justice, and Culture and Justice

• Newly revised sections: Learning Objectives, Goal-Setting Theory, and Equity Theory/Organizational Justice

• New research incorporated in the following areas: Hierarchy of Needs Theory as well as International Research on McClelland’s Theory of Needs, Goal-Setting Theory, Self-Determination Theory, Self-Efficacy Theory, and Equity Theory/ Organizational Justice

• New features: Watch It [Motivation (TWZ Role Play)], Try It (Simulation: Moti- vation), and Personal Inventory Assessments (Work Motivation Indicator)

Chapter 8: Motivation: From Concepts to Applications

• Newly revised sections: The Job Characteristics Model, Job Rotation, Reward- ing Individual Employees through Variable-Pay Programs, and Using Benefits to Motivate Employees

• New research incorporated in the following areas: Job Rotation; Relational Job Design; Flextime; Job Sharing; Participative Management; Establishing a Pay Structure; Merit-Based Pay; Employee Stock Ownership Plans; Using Intrinsic Rewards; and International Research on the Job Characteristics Model, Telecom- muting, Cultural Employee Involvement Programs, Representative Participation, Rewarding Individual Employees through Variable-Pay Programs, Piece-Rate Pay, Bonuses, and Profit-Sharing Plans

• New features: Personal Inventory Assessments (Diagnosing the Need for Team Building), Watch It (Zappos: Motivating Employees through Company Culture), and Try It (Simulation: Extrinsic & Intrinsic Motivation)

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Chapter 9: Foundations of Group Behavior

• New content: Social Identity, Ingroups and Outgroups, Norms and Emotions, Pos- itive and Negative Norms and Group Outcomes, Norms and Culture, Group Status Inequity, and Group Status and Stigmatization

• Newly revised sections: Learning Objectives; Role Expectations; Role Conflict; Group Status, Group Size, and Dynamics, Group Cohesiveness; Group Diversity; and Implications for Managers

• New research incorporated in the following areas: Group Norms, Group Status and Norms, Group Status and Group Interaction, Group Size and Dynamics, Chal- lenges of Group Diversity, Group Effectiveness and Efficiency, and International Research in Group Diversity

• New features: Watch It (Witness.org: Managing Groups & Teams), Personal Inventory Assessments (Communicating Supportively), and Try It (Simulation: Group Behavior)

Chapter 10: Understanding Work Teams

• New content: Cultural Differences in Work Teams, Team Identity, Team Cohe- sion, and Shared Mental Models

• Newly revised sections: Problem-Solving Teams, Summary, and Implications for Managers

• New research incorporated in the following areas: The Popularity of Teams, Cross-Functional Teams, Virtual Teams, Multiteam Systems, Creating Effective Teams, Team Composition, Personality of Team Members, Size of Teams, and International Research on Climate of Trust

• New features: Watch It [Teams (TWZ Role Play)], Personal Inventory Assess- ments (Team Development Behaviors), and Try It (Simulation: Teams)

Chapter 11: Communication

• New content: Managing Behavior, Feedback, Emotional Feedback, Emotional Sharing, Persuasion, and Information Exchange

• Newly revised sections: Downward and Upward Communication, The Grapevine, Oral Communication, and Telephone

• New research incorporated in the following areas: Functions of Communication and Information Overload

• New features: Watch It [Communication (TWZ Role Play)], Personal Inventory Assessments (Communication Styles), and Try It (Simulation: Communication)

Chapter 12: Leadership

• New content: Dark Side Traits, Leader–Member Exchange Theory, How Transforma- tional Leadership Works, Transformational versus Charismatic Leadership, Emotional Intelligence and Leadership, Leader-Participation Model, and Trust and Culture

• Newly revised sections: Learning Objectives, Trait Theories of Leadership, Con- temporary Theories of Leadership, Behavioral Theories, Responsible Leadership, and Authentic Leadership

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• New research incorporated in the following areas: Big Five Traits, Transac- tional and Transformational Leadership, Path–Goal Theory, Servant Leadership, and International Research on Charismatic Leadership and the Evaluation of Transformational Leadership

• New features: Watch It [Leadership (TWZ Role Play)], Personal Inven- tory Assessments (Ethical Leadership Assessment), and Try It (Simulation: Leadership)

Chapter 13: Power and Politics

• New content: The General Dependence Postulate, Social Network Analysis, Sex- ual Harassment, Inter-Organizational Factors Contributing to Political Behavior, Interviews and Impression Management, Scarcity, and Nonsubstitutability

• Newly revised sections: Learning Objectives and Individual Factors Contributing to Political Behavior

• New research incorporated in the following areas: Impression Management, Performance Evaluations and Impression Management, Organizational Factors, and Contributing to Political Behavior

• New features: Watch It (Power and Political Behavior), Personal Inventory Assessments (Gaining Power and Influence), and Try It (Simulation: Power & Politics)

Chapter 14: Conflict and Negotiation

• New content: Negotiating in a Social Context, Reputation and Relationships in Negotiations, and Third-Party Negotiations

• Newly revised sections: Learning Objectives, A Definition of Conflict, Loci of Conflict, and Stage IV of the Conflict Process: Behavior, Personality Traits, and Gender Differences in Negotiations

• New research incorporated in the following areas: Functional Outcomes, Prepa- ration and Planning for Negotiation, and International Research on Personal Vari- ables as Sources of Conflict and Cultural Influences on Negotiation

• New features: Watch It (Gordon Law Group: Conflict and Negotiation) and Per- sonal Inventory Assessments (Strategies for Handling Conflict)

Chapter 15: Foundations of Organization Structure

• New content: Implications of Organizational Structure for OB; Boundary Span- ning; Types of Organizational Structures, including Functional, Divisional, Team, and Circular Structures; and Institutions and Strategy

• Newly revised sections: Learning Objectives and Description of Organizational Structure

• New research incorporated in the following areas: The Leaner Organization: Downsizing, Organizational Strategies and Structure, and International Research on Technology and Strategy

• New features: Personal Inventory Assessments (Organizational Structure Assess- ment), Try It (Simulation: Organizational Structure), and Watch It (ZipCar: Orga- nizational Structure)

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Chapter 16: Organizational Culture

• New content: The Ethical Dimensions of Culture, Culture and Sustainability, Culture and Innovation, Culture as an Asset, Strengthening Dysfunctions, Rivals, and Influencing an Organizational Culture

• Newly revised sections: Description of Organizational Culture, Barriers to Acquisitions and Mergers, Ethical Culture, Positive Culture, Rewarding More Than Punishing, and Building on Employee Strengths

• New research incorporated in the following areas: Organizational Socialization • New features: Try It (Simulation: Organizational Culture) and Personal Inventory

Assessments (Organizational Structure Assessment)

Chapter 17: Organizational Change and Stress Management

• New content: Reactionary versus Planned Change; The Politics of Change; Action Research; Sensitivity Training, Managing the Change Paradox; Describing and Creating a Learning Organization; Organizational Change and Stress; Allostasis; Potential Sources of Stress at Work; Environmental, Personal, and Organizational Factors Leading to Stress; Stress Additivity; Perception and Stress; Job Experi- ence and Stress; Personality Traits and Stress; Cultural Differences and Stress; and Wellness Programs

• Newly revised sections: Description of Change, Forces for Change, Coercion as a Tactic to Overcome Resistance to Change, Demands and Resources, Social Sup- port and Stress, Summary, and Implications for Managers

• New research incorporated in the following areas: Resistance to Change, De- veloping Positive Relationships to Overcome Resistance to Change, Context and Innovation, Behavioral Symptoms of Stress, and International Research on Com- munication to Overcome Resistance to Change and on Idea Champions

• New features: Try It (Simulation: Change), Watch It (East Haven Fire Depart- ment: Managing Stress), and Personal Inventory Assessments (Tolerance of Am- biguity Scale)

INSTRUCTOR RESOURCES

At Pearson’s Higher Ed catalog, https://www.pearsonhighered.com/sign-in.html, instruc- tors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit https:// support.pearson.com/getsupport for answers to frequently asked questions and toll-free user support phone numbers.

The following supplements are available with this text:

• Instructor’s Resource Manual • Test Bank • TestGen® Computerized Test Bank • PowerPoint Presentation

This title is available as an eBook and can be purchased at most eBook retailers.

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xxix

ACKNOWLEDGMENTS

We owe a debt of gratitude to all those at Pearson who have supported this text over the past 25 years and who have worked so hard on the development of this latest edition. On the editorial side, we want to thank Director of Portfolio Management Stephanie Wall, Portfolio Manager Kris Ellis-Levy, Managing Producer Ashley Santora, Content Pro- ducer Claudia Fernandes, and Editorial Assistant Hannah Lamarre. On the production side, we want to thank Moumita Majumdar and Revathi Viswanathan, Project Managers at Cenveo® Publisher Services. The authors are grateful for Lori Ehrman Tinkey of the University of Notre Dame for her invaluable assistance in manuscript editing and prepa- ration. Thank you also to David Glerum, Ph.D., for his input. Last but not least, we would like to thank the marketing team for promoting the book to the market, and the sales staff who have been selling this book over its many editions. We appreciate the attention you’ve given this book.

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ABOUT THE AUTHORS

Stephen P. Robbins, Ph.D. University of Arizona

Stephen P. Robbins is Professor Emeritus of Management at San Diego State University and the world’s best-selling textbook author in the areas of both management and orga- nizational behavior. His books are used at more than a thousand U.S. colleges and uni- versities, have been translated into 19 languages, and have adapted editions for Canada, Australia, South Africa, and India. Dr. Robbins is also the author of the best-selling books The Truth About Managing People, 2nd ed. (Financial Times/Prentice Hall, 2008) and Decide & Conquer (Financial Times/Prentice Hall, 2004).

In his “other life,” Dr. Robbins actively participates in masters’ track competitions. Since turning 50 in 1993, he’s won 18 national championships and 12 world titles, and set numerous U.S. and world age-group records at 60, 100, 200, and 400 meters. In 2005, Dr. Robbins was elected into the USA Masters’ Track & Field Hall of Fame.

Timothy A. Judge, Ph.D. University of Illinois at Urbana-Champaign

Timothy A. Judge is currently the Alutto Professor of Leadership at The Ohio State Uni- versity and Visiting Professor, Division of Psychology & Language Sciences, Univer- sity College London. He has held academic positions at the University of Notre Dame, University of Florida, University of Iowa, Cornell University, Charles University in the Czech Republic, Comenius University in Slovakia, and University of Illinois at Urbana- Champaign. Dr. Judge’s primary research interests are in (1) personality, moods, and emotions; (2) job attitudes; (3) leadership and inf luence behaviors; and (4) careers (person–organization fit, career success). Dr. Judge has published more than 154 articles in these and other major topics in journals such as the Academy of Management Journal and the Journal of Applied Psychology. He is a fellow of several organizations, including the American Psychological Association and the Academy of Management. Among the many professional acknowledgments of his work, most recently Dr. Judge was awarded the Academy of Management Human Resources Division’s Scholarly Achievement Award for 2014. Dr. Judge is a co-author of Organizational Behavior, 17th ed., with Ste- phen P. Robbins, and Staffing Organizations, 8th ed., with Herbert G. Heneman III. He is married and has three children—a daughter who is a health care social worker, a daughter who is studying for a master’s degree, and a son in middle school.

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1

What Is Organizational Behavior?

1

Chapter Warm-up If your professor has chosen to assign this, go to the Assignments section of mymanagementlab.com to complete the chapter warm-up.

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Learning Objectives

after studying this chapter, you should be able to:

1. Define organizational behavior (referred to as Ob throughout the text).

2. Show the value of systematic study to OB.

3. Identify the major behavioral science disciplines that contribute to OB.

4. Demonstrate why few absolutes apply to OB.

5. Identify managers’ challenges and opportunities in applying OB concepts.

6. Compare the three levels of analysis in this text’s OB model.

As you begin your study of this text, you might be wondering, “What is organizational behavior and why does it matter to me?” We get to the definition of organizational behavior, or OB, in a moment, but let’s begin with the end in mind—why OB matters, and what the study of OB offers you.

First, a bit of history. Until the late 1980s, business school curricula emphasized the technical aspects of management, focusing on economics, accounting, finance, and quan- titative techniques. Course work in human behavior and people skills received relatively

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less attention. Since then, however, business schools have realized the significant role interpersonal skills play in determining a manager’s effectiveness. In fact, a survey of over 2,100 CFOs across 20 industries indicated that a lack of interpersonal skills is the top reason why some employees fail to advance.1

One of the principal applications of OB is toward an improvement in interper- sonal skills. Developing managers’ interpersonal skills helps organizations attract and keep high-performing employees, which is important since outstanding employees are always in short supply and are costly to replace. But the development of interpersonal skills is not the only reason OB matters. Secondly, from the organizational standpoint, incorporating OB principles can help transform a workplace from good to great, with a positive impact on the bottom line. Companies known as good places to work—such as Genentech, the Boston Consulting Group, Qualcomm, McKinsey & Company, Procter & Gamble, Facebook, and Southwest Airlines2—have been found to generate superior financial performance.3 Third, there are strong associations between the quality of work- place relationships and employee job satisfaction, stress, and turnover. For example, one very large survey of hundreds of workplaces and more than 200,000 respondents showed that social relationships among coworkers and supervisors were strongly related to over- all job satisfaction. Positive social relationships also were associated with lower stress at work and lower intentions to quit.4 Further research indicates that employees who relate to their managers with supportive dialogue and proactivity find that their ideas are endorsed more often, which improves workplace satisfaction.5 Fourth, increasing the OB element in organizations can foster social responsibility awareness. Accordingly, univer- sities have begun to incorporate social entrepreneurship education into their curriculum in order to train future leaders to address social issues within their organizations.6 This is especially important because there is a growing need for understanding the means and outcomes of corporate social responsibility, known as CSR.7 We discuss CSR more fully in Chapter 3.

We understand that in today’s competitive and demanding workplace, managers can’t succeed on their technical skills alone. They also have to exhibit good people skills. This text has been written to help both managers and potential managers develop those people skills with the knowledge that understanding human behavior provides. In so doing, we believe you’ll also obtain lasting skills and insight about yourself and others.

ManageMent and OrganizatiOnal BehaviOr

The roles of a manager—and the necessary skills needed to perform as one—are con- stantly evolving. More than ever, individuals are placed into management positions with- out management training or informed experience. According to a large-scale survey, more than 58 percent of managers reported they had not received any training and 25 percent admitted they were not ready to lead others when they were given the role.8 Added to that challenge, the demands of the job have increased: the average manager has seven direct reports (five was once the norm), and has less management time to spend with them than before.9 Considering that a Gallup poll found organizations chose the wrong candidate for management positions 82 percent of the time,10 we conclude that the more you can learn about people and how to manage them, the better prepared you will be to be that right candidate. OB will help you get there.

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Chapter 1 • What Is Organizational Behavior? 3

Organizational Behavior (OB) defined

Organizational behavior (OB) is a field of study that investigates the impact individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. That’s a mouthful, so let’s break it down.

OB is a field of study, meaning that it is a distinct area of expertise with a common body of knowledge. What does it study? It studies three determinants of behavior within organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively.

To sum up our definition, OB is the study of what people do in an organization and the way their behavior affects the organization’s performance. Because OB is concerned specifically with employment-related situations, it examines behavior in the context of job satisfaction, absenteeism, employment turnover, productivity, human performance, and management. Although debate exists about the relative importance of each, OB in- cludes these core topics:11

• Motivation • Leader behavior and power • Interpersonal communication • Group structure and processes • Attitude development and perception • Change processes • Conflict and negotiation • Work design

effective versus Successful Managerial activities

Now that we understand what OB is, we may begin to apply some concepts. Consider the important issue of effective management. What makes one manager more effective than another? To answer the question, Fred Luthans, a prominent OB researcher, and his associates looked at what managers do from a unique perspective.12 They asked, “Do managers who move up most quickly in an organization do the same activities and with the same emphasis as managers who do the best job?” You might think the answer is yes, but that’s not always the case.

Luthans and his associates studied more than 450 managers. All engaged in four managerial activities:

1. traditional management. Decision making, planning, and controlling. 2. communication. Exchanging routine information and processing paperwork. 3. Human resources (Hr) management. Motivating, disciplining, managing con-

flict, staffing, and training. 4. networking. Socializing, politicking, and interacting with outsiders.

The “average” manager spent 32 percent of his or her time in traditional manage- ment activities, 29 percent communicating, 20 percent in HR management activities, and 19 percent networking. However, the time and effort different individual managers spent

Organizational behavior A field of study that investigates the impact individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

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4 Part 1 • Understanding Yourself and Others

on those activities varied a great deal. Among managers who were successful (defined in terms of speed of promotion within their organizations), networking made the largest relative contribution to success and HR management activities made the least relative contribution, which is the opposite of the average manager. Indeed, other studies in Aus- tralia, Israel, Italy, Japan, and the United States confirm the link between networking, social relationships, and success within an organization.13 However, Luthans and associ- ates found that among effective managers (defined in terms of quantity and quality of their performance and the satisfaction and commitment of their employees), communica- tion made the largest relative contribution and networking the least. This finding is more in line with the average manager, with the important exception of increased emphasis on communication. The connection between communication and effective managers is clear. Managers who explain their decisions and seek information from colleagues and employees—even if the information turns out to be negative—are the most effective.14

WatCh It If your professor has assigned this, go to the Assignments section of mymanagementlab .com to complete the video exercise titled herman Miller: Organizational Behavior.

COMpleMenting intuitiOn with SySteMatiC Study

Whether you’ve explicitly thought about it before or not, you’ve been “reading” people almost all your life by watching their actions and interpreting what you see, or by trying to predict what people might do under different conditions. The casual approach to read- ing others can often lead to erroneous predictions, but using a systematic approach can improve your accuracy.

Underlying the systematic approach is the belief that behavior is not random. Rather, we can identify fundamental consistencies underlying the behavior of all indi- viduals and modify them to reflect individual differences. These fundamental consisten- cies are very important. Why? Because they allow for predictability. Behavior is generally predictable, and the systematic study of behavior is a means to making reasonably accu- rate predictions. When we use the term systematic study, we mean looking at relation- ships, attempting to attribute causes and effects, and basing our conclusions on scientific evidence—that is, on data gathered under controlled conditions and measured, and inter- preted, in a rigorous manner.

evidence-based management (ebM) complements systematic study by basing managerial decisions on the best available scientific evidence. For example, we want doc- tors to make decisions about patient care based on the latest available evidence, and EBM argues that managers should do the same, thinking more scientifically about management problems. A manager might pose a question, search for the best available evidence, and apply the relevant information to the question or case at hand. You might wonder what manager would not base decisions on evidence, but the vast majority of management deci- sions are still made “on the fly,” with little to no systematic study of available evidence.15

Systematic study and EBM add to intuition, or those “gut feelings” about what makes others (and ourselves) “tick.” Of course, the things you have come to believe in an unsystematic way are not necessarily incorrect. Jack Welch (former CEO of General

When you see this icon, Global OB issues are being discussed in the paragraph.

systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.

evidence-based management (ebM) The basing of managerial decisions on the best available scientific evidence.

intuition An instinctive feeling not necessarily supported by research.

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Chapter 1 • What Is Organizational Behavior? 5

Electric) noted, “The trick, of course, is to know when to go with your gut.”16 But if we make all decisions with intuition or gut instinct, we’re likely working with incomplete information—like making an investment decision with only half the data about the poten- tial for risk and reward.

Big data

Data, the foundation of EBM, have been used to evaluate behavior since at least 1749, when the word “statistic” was coined to mean a “description of the state.”17 Statistics back then were used for purposes of governance, but since the data collection methods were clumsy and simplistic, so were the conclusions. “Big data”—the extensive use of statisti- cal compilation and analysis—didn’t become possible until computers were sophisticated enough to both store and manipulate large amounts of information. The use of big data began with online retailers but has since permeated virtually every business.

Current uSage No matter how many terabytes of data firms collect or from how many sources, the reasons for data analytics include: predicting events, from a book purchase to a spacesuit malfunction; detecting how much risk is incurred at any time, from the risk of a fire to that of a loan default; and preventing catastrophes large and small, from a plane crash to the overstocking of a product.18 With big data, U.S. defense contractor BAE Systems protects itself from cyber-attacks, San Francisco’s Bank of the West uses customer data to create tiered pricing systems, and London’s Graze.com analyzes customers’ preferences to select snack samples to send with their orders.19

new trendS The use of big data for understanding, helping, and managing people is relatively new but holds promise. In fact, research on 10,000 workers in China, Germany, India, the United Kingdom, and the United States indicated that employees expect the next transformation in the way people work will rely more on technological advancements than on any other factor, such as demographic changes.20

It is good news for the future of business that researchers, the media, and company leaders have identified the potential of data-driven management and decision making. A manager who uses data to define objectives, develop theories of causality, and test those the- ories can determine which employee activities are relevant to the objectives.21 Big data has implications for correcting management assumptions and increasing positive performance outcomes. Increasingly, it is applied toward making effective decisions (Chapter 6) and managing organizational change (Chapter 17). It is quite possible that the best use of big data in managing people will come from OB and psychology research where it might, for instance, even help employees with mental illnesses monitor and change their behavior.22

liMitatiOnS As technological capabilities for handling big data have increased, so have issues of privacy and appropriate application. This is particularly true when data collection includes surveillance instruments. For instance, an experiment in Brooklyn, New York, has been designed to improve the quality of life for residents, but the researchers will collect potentially intrusive data from infrared cameras, sensors, and smartphone Wi-Fi signals.23 Through similar methods of surveillance monitoring, a bank call center and a pharmaceutical company found that employees were more productive with more social interaction, so they changed their break time policies so more people took breaks

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together. They then saw sales increase and turnover decrease. Bread Winners Café in Dallas, Texas, constantly monitors all employees in the restaurant through surveillance and uses that data to promote or discipline its servers.24 Privacy and application issues abound with these techniques, but abandoning them is not necessarily the fix.

An understanding of deeper OB issues can help find the productive balance. These big data tactics and others might yield results—and research indicates that, in fact, elec- tronic performance monitoring does increase task performance and citizenship behavior (helping behaviors towards others), at least in the short term. But critics point out that after Frederick Taylor introduced surveillance analytics in 1911 to increase productiv- ity through monitoring and feedback controls, his management control techniques were surpassed by Alfred Sloan’s greater success with management outcomes, achieved by providing meaningful work to employees.25

We are not advising you to throw intuition out the window. In dealing with people, leaders often rely on hunches, and sometimes the outcomes are excellent. At other times, human tendencies get in the way. What we are advising is to use evidence as much as pos- sible to inform your intuition and experience. The prudent use of big data, along with an understanding of human behavioral tendencies, can contribute to sound decision making and ease natural biases. That is the promise of OB.

diSCiplineS that COntriBute tO the OB Field

OB is an applied behavioral science built on contributions from a number of behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology. Psy- chology’s contributions have been principally at the individual or micro-level of analysis, while the other disciplines have contributed to our understanding of macro concepts such as group processes and organization. Exhibit 1-1 is an overview of the major contribu- tions to the study of OB.

psychology

Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals. Contributors to the knowledge of OB are learning theorists, personality theorists, counseling psychologists, and, most important, industrial and organizational psychologists.

Early industrial and organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work performance. More recently, their contributions have expanded to include learning, perception, per- sonality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee-selection techniques, work design, and job stress.

Social psychology

social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on people’s influence on one another. One major study area is change—how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust. Finally, they have made impor- tant contributions to our study of group behavior, power, and conflict.

Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

social psychology An area of psychology that blends concepts from psychology and sociology to focus on the influence of people on one another.