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Organizational Behavior

A B O U T T H E AU T H O R S

Academy of Management Review, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, Journal of Management, Journal of Organizational Behavior, and Journal of Occupational and Organizational Psychology. He is a recipient of the Society for Industrial and Organizational Psychology’s Distinguished Early Career Contributions Award and the Cummings Scholar Award for early to mid-career achieve- ment, sponsored by the Organizational Behavior division of the Academy of Management. He was also elected to the Executive Committee of the Human Resource Division of the Academy of Management. Prior to earning his PhD, Jeff was an officer in the U.S. Air Force.

Jeff spends most of his free time with his wife, Marcie, daughter, Izzy, and son, Eli. He also enjoys playing guitar, hiking and mountain biking, working on his growing collection of clas- sic Pontiacs, and serving as the caretaker of his family’s desert hideaway, tentatively called the Goat Farm.

MICHAEL J. WESSON Michael J. Wesson is an associate professor in the Management Department at Texas A&M University’s Mays Business School. He received his PhD from Michigan State University’s Eli Broad Graduate School of Management. He also holds an MS in human resource man- agement from Texas A&M University and a BBA from Baylor University. He has taught orga- nizational behavior and human resource management–based classes at all levels but currently spends most of his time teaching Mays MBAs, EMBAs, and executive development at Texas A&M. He was awarded Texas A&M’s Montague Center for Teaching Excellence Award.

Michael’s research interests include organizational justice, leadership, organizational entry (employee recruitment, selection, and socialization), person–organization fit, and com- pensation and benefits. His articles have been published in journals such as Journal of Applied Psychology, Personnel Psychology, Academy of Management Review, and Organizational Behavior and Human Decision Processes. He has served on several editorial boards and has been an ad hoc reviewer for many others. He is active in the Academy of Management and the Society for Industrial and Organizational Psychology. Prior to returning to school, Michael worked as a human resources manager for a Fortune 500 firm. He has served as a consultant to the automotive supplier, health care, oil and gas, and technology industries in areas dealing with recruiting, selection, onboarding, compensation, and turnover.

Michael spends most of his time trying to keep up with his wife, Liesl, and son, Dylan. He is a self-admitted food and wine snob, home theater aficionado, and college sports addict. (Gig ’em Aggies!)

Courtesy of Michael J. Wesson

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Why did we decide to write this text? Well, for starters, organizational behavior (OB) remains a fascinating topic that everyone can relate to (because everyone either has worked or is going to work in the future). What makes people effective at their job? What makes them want to stay with their employer? What makes work enjoyable? Those are all fundamental questions that organizational behavior research can help answer. However, our desire to write this text also grew out of our own experiences (and frustrations) teaching OB courses using other texts. We found that students would end the semester with a common set of questions that we felt we could answer if given the chance to write our own text. With that in mind, Organizational Behavior: Improving Performance and Commitment in the Workplace was writ- ten to answer the following questions.

DOES ANY OF THIS STUFF REALLY MATTER? Organizational behavior might be the most relevant class any student ever takes, but that doesn’t always shine through in OB texts. The introductory section of our text contains two chapters not included in other texts: Job Performance and Organizational Commitment. Being good at one’s job and wanting to stay with one’s employer are obviously critical concerns for employees and managers alike. After describing these topics in detail, every remaining chapter in the text links that chapter’s content to performance and commitment. Students can then better appreciate the practical relevance of organizational behavior concepts.

IF THAT THEORY DOESN’T WORK, THEN WHY IS IT IN THE TEXT? In putting together this text, we were guided by the question, “What would OB texts look like if all of them were first written now, rather than decades ago?” We found that many of the organizational behavior texts on the market include outdated (and indeed, scientifi- cally disproven!) models or theories, presenting them sometimes as fact or possibly for the sake of completeness or historical context. Our students were always frustrated by the fact that they had to read about, learn, and potentially be tested on material that we knew to be wrong. Although historical context can be important at times, we believe that focusing on so-called evidence-based management is paramount in today’s fast-paced classes. Thus, this text includes new and emerging topics that others leave out and excludes flawed and outdated topics that some other texts leave in.

HOW DOES ALL THIS STUFF FIT TOGETHER? Organizational behavior is a diverse and multidisciplinary field, and it’s not always easy to see how all its topics fit together. Our text deals with this issue in two ways. First, all of the chapters in our text are organized around an integrative model that opens each chapter (see the back of the text). That model provides students with a road map of the course, showing them where they’ve been and where they’re going. Second, our chapters are tightly focused around specific topics and aren’t “grab bag–ish” in nature. Our hope is that students (and instructors) won’t ever come across a topic and think, “Why is this topic being discussed in this chapter?”

Preface

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P R E FAC E

DOES THIS STUFF HAVE TO BE SO DRY? Research on motivation to learn shows that students learn more when they have an intrinsic interest in the topic, but many OB texts do little to stimulate that interest. Put simply, we wanted to create a text that students enjoy reading. To do that, we used a more informal, con- versational style when writing the text. We also tried to use company examples that students will be familiar with and find compelling. Finally, we included insert boxes, self-assessments, and exercises that students should find engaging (and sometimes even entertaining!).

NEW AND IMPROVED COVERAGE

• Chapter 1: What Is OB?—This chapter now opens with a wraparound case on IKEA.

The case describes the personality of the company’s founder, Ingvar Kamprad, as well

as the values at play in the corporate culture. The case also describes some of the prac-

tices IKEA uses to maximize job satisfaction and motivation, along with some of its

corporate social responsibility initiatives. The OB at the Bookstore selection has been

changed to How to Have a Good Day. This book describes how research in psychology,

neuroscience, and behavioral economics can be used to improve employee attitudes

and behaviors.

• Chapter 2: Job Performance—This chapter features a new wraparound case on General

Electric (GE), which describes how and why the company’s approach to managing

employee job performance has changed. With a new emphasis on creativity and rapid

innovation, GE abandoned formal annual job performance evaluations. Our OB at the

Bookstore feature has been changed to Mastering Civility. This book overviews implica-

tions and costs of incivility in the workplace, and outlines steps that employees and

managers can take to manage this form of counterproductive behavior. Our new OB on

Screen feature, Sully, provides a glimpse of extraordinary job performance as well as

the dilemma of distinguishing job performance behavior from results.

• Chapter 3: Organizational Commitment—PwC serves as the wraparound case in this edi-

tion, spotlighting the things the company does to build loyalty among Millennials. The

case also describes studies that PwC performed on what Millennials value at work, and

how those studies match the findings of scientific research. One key finding was that

Millennials value leisure time more than prior generations. That insight triggered a new

initiative at PwC where managers work with employees to chart out a schedule that

suits them.

• Chapter 4: Job Satisfaction—This chapter’s wraparound case now highlights Publix,

the Florida-based supermarket chain. Publix does a number of things to keep their

employees satisfied, including promoting from within, paying above market wages, and

reimbursing tuition. The case also focuses on Publix’s employee stock ownership plan

and what owning a piece of the company can do for job satisfaction. The OB at the

Bookstore selection is now The Power of Meaning, which contrasts the pursuit of short-

term happiness with the pursuit of long-term meaning. The book describes a number of

ways to pursue meaning, including work that promotes a purpose. The OB on Screen

feature examines the subjective nature of job satisfaction. Paterson depicts a bus driver

who has a seemingly boring, repetitive job. Yet he winds up satisfied because it affords

him free time for his passion in life: poetry.

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viii P R E FAC E

• Chapter 5: Stress—Honeywell is now featured in the wraparound case for this chapter.

Honeywell has grown and evolved through mergers and acquisitions, and this has placed

a variety of stressful demands on employees. The case describes how the company’s

response to a slowdown in one of its businesses created even more stress. Our OB on

Screen feature has been changed to Deepwater Horizon. The film provides insight into

the nature of role conflict and how it contributed to the the largest marine oil spill in

U.S. history. The bestselling book, Work Without Stress, is now our OB at the Bookstore

feature. The authors argue that rumination is responsible for turning demands into

stress, and thus, the whole key to managing stress, is to stop ruminating. The authors

provide many suggestions for putting this rather provocative idea into practice.

• Chapter 6: Motivation—This chapter now opens with a wraparound case on Google. The

case describes exactly how Google evaluates and compensates its employees so that it

can motivate them. The case also describes Google’s philosophy on “star” employees,

including how to retain talent that contributes fundamentally more than the norm. The

OB on Screen feature focuses on psychological empowerment using Star Trek Beyond,

where Captain Kirk struggles with purpose given the monotony of his job and the infi-

nite vastness of space. The OB at the Bookstore focuses on Deep Work, a form of work

that requires a distraction-free state that pushes the limits of one’s ability. The book

argues that deep work is increasingly vital in a knowledge economy, but several factors

conspire to limit the motivation to perform such work.

• Chapter 7: Trust, Justice, and Ethics—SeaWorld serves as the wraparound case for the

revised chapter. The case spotlights the controversies over the park’s orca shows that

have caused it to phase out those attractions. The case also describes how corporate

ethics are often shaped by a combination of public pressure and government interven-

tion. The Founder is the OB on Screen selection for the chapter. The film details how

Ray Kroc wrested control over McDonald’s from the brothers who founded the com-

pany, including performing actions that the brothers deemed unethical. The OB at the

Bookstore selection is now Radical Candor, which describes how trust can be cultivated

by a combination of caring personally, but also challenging directly. Of course, the lat-

ter component is difficult for many managers, so the book provides some specific tips

for improvement.

• Chapter 8: Learning and Decision Making—Bridgewater Associates and the highly

unique “radical transparency” philosophy established by hedge fund manager and

founder Ray Dalio serves as the wraparound case in this edition. The case describes

how Bridgewater is attempting, by using decisions made by people in the organization

paired with organizational “principles,” to develop a software system that will make the

majority of management decisions after Dalio is gone. The OB on Screen feature now

focuses on The Big Short, highlighting how decision-making errors were at the core of

the financial crash of 2008. A new OB at the Bookstore feature highlights Peak and

the development of expertise through deliberate practice. The chapter also includes a

number of research updates as well as several new company examples.

• Chapter 9: Personality and Cultural Values—This chapter’s wraparound case is now the

Chicago Cubs. The case describes the personality traits that Theo Epstein, the club’s

president, looked for to turn around the losing history of the franchise. La La Land is

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P R E FAC E

the chapter’s OB on Screen selection, with the film spotlighting a musician who pos-

sesses high openness to experience but low conscientiousness. He’s therefore talented

with his music, but finds it difficult to hold down a job. The OB at the Bookstore selec-

tion is Grit, which focuses on a personality trait that represents a combination of pas-

sion and perseverance. It is the “gritty” employees that remain resilient and determined

in the face of adversity.

• Chapter 10: Ability—This chapter’s wraparound case now features the Federal Bureau of

Investigation (FBI). The case describes how various jobs at the FBI require unique abil-

ities, and how the organization ensures that agents possess these abilities when they’re

hired. The case also discusses how the FBI introduced annual physical fitness testing

to deal with the potential erosion of physical abilities after agents are hired. Humility

Is the New Smart is now our OB at the Bookstore feature. The authors argue that jobs

are quickly being replaced by smart machines, and following from this, the definition

of what it means to be smart is also changing. Specifically, the authors propose that

being smart now involves interpersonal capacities, such as humility and putting others

first, that promote cooperation and collaborative efforts. The new movie for our OB on

Screen feature is Hidden Figures. This film provides vivid real-world examples of vari-

ous quantitative abilities, and their role in the U.S. space program during the 1960s.

• Chapter 11: Teams: Characteristics and Diversity—Whole Foods serves as the new wrap-

around case for this chapter. The case discusses how Whole Foods relies on teams,

which are largely self-managed, at all levels of the organization. The case describes how

existing teams are involved in the hiring of new team members. The OB on Screen fea-

ture now discusses the movie Arrival, which provides excellent examples of task, goal,

and outcome interdependence. Inclusion is now discussed in our OB at the Bookstore

feature. The author of this book describes how a special type of parallel team, the

employee resource group or ERG, provides support and guidance to members of their

communities who may be dealing with diversity- or inclusion-related challenges.

• Chapter 12: Teams: Processes and Communication—This chapter includes a new wrap-

around case featuring Microsoft. Microsoft responded to an erosion of their position

in the tech industry by restructuring around multidisciplinary teams. The case focuses

on how Microsoft redesigned two buildings to inspire creativity and encourage col-

laboration among team members. The OB on Screen feature now centers on the movie

Spotlight. This film illustrates how boundary-spanning activities are crucial to the effec-

tiveness of a team of investigative reporters. Our OB at the Bookstore feature has been

changed to Smart Collaboration. This book addresses the challenge of managing teams

in the professional services industry, where highly specialized employees are typically

not keen on collaborating.

• Chapter 13: Leadership: Power and Negotiation—This chapter features a new wraparound

case on Zappos’s move toward “holocracy”—a self-management oriented organizational

structure. Tony Hsieh (CEO) expects this move to get rid of organizational politics and

take away organizational forms of power, which should allow Zappos employees to

manage themselves and make decisions for the right reasons. It isn’t going well. The

chapter has been updated with new research including our decision to move “exchange”

to a lower tier of effectiveness as an influence tactic based on a new meta-analysis.

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x P R E FAC E

The new OB on Screen feature uses Bridge of Spies to illustrate what might lead one to

take a competing style of conflict resolution in a negotiation. Pre-suasion is the new OB

at the Bookstore feature, which focuses on the best way to set things up to be able to

influence others.

• Chapter 14: Leadership: Styles and Behaviors—The chapter begins with a new wrap-

around case featuring the consistent Mary Barra of General Motors. The opener and

the case highlight Barra’s push to make GM’s culture shift from slow to fast. Several

examples, including Barra’s push toward her vision of autonomous cars, highlight her

transformational leadership style. A new OB at the Bookstore feature highlights Sydney

Finkelstein’s Superbosses, which is a unique book that ends up being more about trans-

formational leadership than it lets on. The new OB on Screen is The Martian, which

gives students a chance to utilize the time-driven model of leadership to see if the

leader made the correct decision in the movie. The chapter includes a number of new

research findings as well as updated company examples, including organizations such

as American Apparel, Chobani, and GoPro.

• Chapter 15: Organizational Structure—Apple is the focus of this chapter’s new wraparound

case that highlights the company’s dogged determination to stay with the functional

structure that has served them well for so long amid lots of pressure to change. A number

of new company examples such as Facebook, Chipotle, and Cargill have been added as

well as the introduction of “Dunbar’s number” (150), which a number of companies pay

attention to when it comes to size and structure. A new OB at the Bookstore features

The Silo Effect, which illustrates the trials and tribulations of how organizational structure

(and culture) plays havoc with our perceptions and ability to communicate inside an

organization.

• Chapter 16: Organizational Culture—This chapter has a new wraparound case that

focuses on both Delta and United. The case spotlights the differences in the cultures at

the two carriers—differences that can explain specific actions and their larger reputa-

tions. The OB at the Bookstore feature now highlights Originals, a book that describes

the kinds of people who “go against the grain” by performing creative acts. Many orga-

nizations try to foster a culture that encourages such originality. The OB on Screen

selection is now The Circle, a film that spotlights a faux Silicon Valley corporation

whose work is ethically murky. The film provides a vivid example of several elements

of organizational culture. A number of new company examples such as Wells Fargo,

Cirque du Soleil, and Whataburger have been added.

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An enormous number of persons played a role in helping us put this text together. Truth be told, we had no idea that we would have to rely on and put our success in the hands of so many different people! Each of them had unique and useful contributions to make toward the publication of this text, and they deserve and thus receive our sincere gratitude.

We thank Michael Ablassmeir, our executive editor, for his suggestions and guidance on the last four editions, and John Weimeister for filling that same role with earlier editions. We are thankful to both for allowing us to write the text that we wanted to write. Thanks also go out to Kelly Pekelder, our product developer, for keeping us on track and being such a pleasure to work with during this revision. We also owe much gratitude to our marketing manager, Debbie Clare. We also would like to thank Melissa Leick, Egzon Shaqiri, and Ann Marie Jannette at McGraw-Hill, as they are the masterminds of much of how the text actu- ally looks; their work and effort were spectacular. A special thanks also goes out to Jessica Rodell (University of Georgia) and Megan Endres (Eastern Michigan University) for their assistance with our CONNECT content.

We would also like to thank our students at the undergraduate, masters, and executive levels who were taught with this text for their constructive feedback toward making it more effective in the classroom. Thanks also to our PhD students for allowing us to take time out from research projects to focus on this effort.

Finally, we thank our families, who gave up substantial amounts of time with us and put up with the stress that necessarily comes at times during an endeavor such as this.

Jason Colquitt

Jeff LePine

Michael Wesson

Acknowledgments

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OB ON SCREEN

OB AT THE BOOKSTORE

Text Features: OB Insert Boxes

“ Very comprehensive. Well laid-out. Interesting. Good mix of theoretical material and practical insights.”

This feature uses memorable scenes from recent films to bring OB concepts to life. Films like Hidden Figures, The Founder, La La Land, The Martian, Sully, and The Big Short offer rich, vivid examples that grab the attention of students.

This feature links the content in each chapter to a mainstream, popular business book. Books like Originals, The Power of Meaning, Grit, and Peak represent the gateway to OB for many students. This feature helps them put those books in a larger context.

©Moviestore collection Ltd/Alamy

©Roberts Publishing Services

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OB INTERNATIONALLY

OB ASSESSMENTS

This feature helps students see where they stand on key OB concepts in each chapter. Students gain insights into their personality, their emotional intelligence, their style of leadership, and their ability to cope with stress, which can help them understand their reactions to the working world.

“ The material presented in this chapter is well balanced. Again, the tables, charts, and figures help to organize the material for students.”

Changes in technology, communications, and economic forces have made business more global and international than ever. This feature spotlights the impact of glo- balization on the organizational behavior concepts described in this text. It describes cross-cultural differences in OB theories, how to apply them in international corpora- tions, and how to use OB to manage cultural diversity in the workplace.

©iChzigo/Shutterstock

©Namas Bhojani/AP Images

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■ Connect content is authored by the world’s best subject matter experts, and is available to your class through a simple and intuitive interface.

■ The Connect eBook makes it easy for students to access their reading material on smartphones and tablets. They can study on the go and don’t need internet access to use the eBook as a reference, with full functionality.

■ Multimedia content such as videos, simulations, and games drive student engagement and critical thinking skills.

©McGraw-Hill Education

■ Connect’s assignments help students contextualize what they’ve learned through application, so they can better understand the material and think critically.

■ Connect will create a personalized study path customized to individual student needs through SmartBook®.

■ SmartBook helps students study more efficiently by delivering an interactive reading experience through adaptive highlighting and review.

McGraw-Hill Connect® is a highly reliable, easy-to- use homework and learning management solution that utilizes learning science and award-winning adaptive tools to improve student results.

73% of instructors who use Connect

require it; instructor satisfaction increases by 28% when Connect

is required.

Homework and Adaptive Learning

Quality Content and Learning Resources

Over 7 billion questions have been answered, making McGraw-Hill

Education products more intelligent, reliable, and precise.

Using Connect improves retention rates by 19.8%, passing rates by 12.7%, and exam scores by 9.1%.

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More students earn As and Bs when they

use Connect.

www.mheducation.com/connect

©Hero Images/Getty Images

■ Connect Insight® generates easy-to-read reports on individual students, the class as a whole, and on specific assignments.

■ The Connect Insight dashboard delivers data on performance, study behavior, and effort. Instructors can quickly identify students who struggle and focus on material that the class has yet to master.

■ Connect automatically grades assignments and quizzes, providing easy-to-read reports on individual and class performance.

■ Connect integrates with your LMS to provide single sign-on and automatic syncing of grades. Integration with Blackboard®, D2L®, and Canvas also provides automatic syncing of the course calendar and assignment-level linking.

■ Connect offers comprehensive service, support, and training throughout every phase of your implementation.

■ If you’re looking for some guidance on how to use Connect, or want to learn tips and tricks from super users, you can find tutorials as you work. Our Digital Faculty Consultants and Student Ambassadors offer insight into how to achieve the results you want with Connect.

Trusted Service and Support

Robust Analytics and Reporting

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Additional Resources

PowerPoint® Presentation Slides The PowerPoint presentation slides are designed to help instructors deliver course content in a way that maintains students’ engagement and attention. The slides include a Notes section that offers specific tips for using the slides (and the text). The Notes also provide bridges to many of the resources in the Instructor’s Manual, including innovative teaching tips and suggestions for using OB on Screen. Finally, the PowerPoints also include bonus OB Assessments for instructors who want additional assessments for their teaching.

Instructor’s Manual Prepared by Jason Colquitt, this manual was developed to help you get the most out of the text in your own teaching. It contains an outline of the chapters, innovative teaching tips to use with your students, and notes and answers for the end-of-chapter materials. It also provides a guide for the assessments in the text, and suggestions for using the OB on Screen feature. The manual also contains additional cases, exercises, and OB on Screen selections from earlier editions of the text, giving you extra content to use in your teaching.

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Brief Contents

PART 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOR 3

CHAPTER 1 4 What Is Organizational Behavior?

CHAPTER 2 28 Job Performance

CHAPTER 3 60 Organizational Commitment

PART 2 INDIVIDUAL MECHANISMS 91 CHAPTER 4 92 Job Satisfaction

CHAPTER 5 124 Stress

CHAPTER 6 160 Motivation

CHAPTER 7 194 Trust, Justice, and Ethics

CHAPTER 8 232 Learning and Decision Making

PART 3 INDIVIDUAL CHARACTERISTICS 263 CHAPTER 9 264 Personality and Cultural Values

CHAPTER 10 304 Ability

PART 4 GROUP MECHANISMS 335 CHAPTER 11 336 Teams: Characteristics and Diversity

CHAPTER 12 374 Teams: Processes and Communication

CHAPTER 13 410 Leadership: Power and Negotiation

CHAPTER 14 442 Leadership: Styles and Behaviors

PART 5 ORGANIZATIONAL MECHANISMS 479 CHAPTER 15 480 Organizational Structure

CHAPTER 16 508 Organizational Culture

INTEGRATIVE CASES 540

GLOSSARY/SUBJECT INDEX 549

NAME INDEX 568

COMPANY INDEX 583

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Table of Contents

PART 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOR 3

CHAPTER 1 4 What Is Organizational Behavior?

What Is Organizational Behavior? 6

Organizational Behavior Defined 6

An Integrative Model of OB 7

Does Organizational Behavior Matter? 9

Building a Conceptual Argument 10

Research Evidence 12

So What’s So Hard? 14

How Do We “Know” What We Know About Organizational

Behavior? 16

Summary: Moving Forward in This Book 20

TAKEAWAYS 23

KEY TERMS 23

DISCUSSION QUESTIONS 23

CASE 24

EXERCISE 25

ENDNOTES 26

CHAPTER 2 28 Job Performance

Job Performance 30

What Does It Mean to Be a “Good Performer”? 31

Task Performance 31

Citizenship Behavior 35

Counterproductive Behavior 39

Summary: What Does It Mean to Be a “Good Performer”? 44

Trends Affecting Performance 45

Knowledge Work 45

Service Work 45

Application: Performance Management 46

Management by Objectives 46

Behaviorally Anchored Rating Scales 47

360-Degree Feedback 48

Forced Ranking 48

Social Networking Systems 49

TAKEAWAYS 49

KEY TERMS 50

DISCUSSION QUESTIONS 50

CASE 51

EXERCISE 52

ENDNOTES 52

CHAPTER 3 60 Organizational Commitment

Organizational Commitment 62

What Does It Mean to Be “Committed”? 63

Types of Commitment 63

Withdrawal Behavior 69

Summary: What Does It Mean to Be “Committed”? 75

Trends That Affect Commitment 75

Diversity of the Workforce 75

The Changing Employee–Employer Relationship 77

Application: Commitment Initiatives 79

TAKEAWAYS 81

KEY TERMS 82

DISCUSSION QUESTIONS 82

CASE 83

EXERCISE 84

ENDNOTES 85

PART 2 INDIVIDUAL MECHANISMS 91 CHAPTER 4 92 Job Satisfaction

Job Satisfaction 94

Why Are Some Employees More Satisfied Than Others? 94

Value Fulfillment 94

Satisfaction with the Work Itself 98

Mood and Emotions 104

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TA B L E O F C O N T E N T S

Summary: Why Are Some Employees More Satisfied

Than Others? 109

How Important Is Job Satisfaction? 109

Life Satisfaction 111

Application: Tracking Satisfaction 113

TAKEAWAYS 115

KEY TERMS 116

DISCUSSION QUESTIONS 116

CASE 117

EXERCISE 117

ENDNOTES 118

CHAPTER 5 124 Stress

Stress 126

Why Are Some Employees More “Stressed” Than Others? 127

Types of Stressors 128

How Do People Cope with Stressors? 132

The Experience of Strain 135

Accounting for Individuals in the Stress Process 137

Summary: Why Are Some Employees More “Stressed”

Than Others? 139

How Important Is Stress? 140

Application: Stress Management 143

Assessment 143

Reducing Stressors 143

Providing Resources 145

Reducing Strains 146

TAKEAWAYS 149

KEY TERMS 149

DISCUSSION QUESTIONS 150

CASE 150

EXERCISE 151

ENDNOTES 152

CHAPTER 6 160 Motivation

Motivation 162

Why Are Some Employees More Motivated Than

Others? 164

Expectancy Theory 164

Goal Setting Theory 170

Equity Theory 173

Psychological Empowerment 177

Summary: Why Are Some Employees More Motivated

Than Others? 180

How Important Is Motivation? 180

Application: Compensation Systems 182

TAKEAWAYS 185

KEY TERMS 185

DISCUSSION QUESTIONS 186

CASE 186

EXERCISE 187

ENDNOTES 188

CHAPTER 7 194 Trust, Justice, and Ethics

Trust, Justice, and Ethics 196

Why Are Some Authorities More Trusted Than Others? 197

Trust 197

Justice 203

Ethics 208

Summary: Why Are Some Authorities More Trusted

Than Others? 215

How Important Is Trust? 217

Application: Social Responsibility 219

TAKEAWAYS 220

KEY TERMS 220

DISCUSSION QUESTIONS 221

CASE 221

EXERCISE 222

ENDNOTES 223

CHAPTER 8 232 Learning and Decision Making

Learning and Decision Making 234

Why Do Some Employees Learn to Make Decisions

Better Than Others? 234

Types of Knowledge 234

Methods of Learning 236

Methods of Decision Making 241

Decision-Making Problems 246

Summary: Why Do Some Employees Learn to Make

Decisions Better Than Others? 251

How Important Is Learning? 253

Application: Training 254

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TAKEAWAYS 255

KEY TERMS 255

DISCUSSION QUESTIONS 256

CASE 256

EXERCISE 257

ENDNOTES 258

PART 3 INDIVIDUAL CHARACTERISTICS 263 CHAPTER 9 264 Personality and Cultural Values

Personality and Cultural Values 266

How Can We Describe What Employees Are Like? 266

The Big Five Taxonomy 266

Other Taxonomies of Personality 279

Cultural Values 280

Summary: How Can We Describe What Employees

Are Like? 283

How Important Are Personality and Cultural Values? 285

Application: Personality Tests 287

TAKEAWAYS 291

KEY TERMS 292

DISCUSSION QUESTIONS 292

CASE 293

EXERCISE 294

ENDNOTES 294

CHAPTER 10 304 Ability

Ability 306

What Does It Mean for an Employee to Be “Able”? 307

Cognitive Ability 307

Emotional Ability 313

Physical Ability 318

Summary: What Does It Mean for an Employee

to Be “Able”? 320

How Important Is Ability? 321

Application: Selecting High Cognitive Ability Employees 323

TAKEAWAYS 326

KEY TERMS 326

DISCUSSION QUESTIONS 327

CASE 327

EXERCISE 328

ENDNOTES 329

PART 4 GROUP MECHANISMS 335 CHAPTER 11 336 Teams: Characteristics and Diversity

Team Characteristics and Diversity 338

What Characteristics Can Be Used to Describe Teams? 339

Team Types 339

Variations Within Team Types 342

Team Interdependence 345

Team Composition 349

Summary: What Characteristics Can Be Used

to Describe Teams? 357

How Important Are Team Characteristics? 358

Application: Team Compensation 359

TAKEAWAYS 360

KEY TERMS 360

DISCUSSION QUESTIONS 361

CASE 361

EXERCISE 362

ENDNOTES 364

CHAPTER 12 374 Teams: Processes and Communication

Team Processes and Communication 376

Why Are Some Teams More Than the Sum of Their

Parts? 376

Taskwork Processes 378

Teamwork Proceses 384

Communication 386

Team States 389

Summary: Why Are Some Teams More Than the Sum

of Their Parts? 392

How Important Are Team Processes? 392

Application: Training Teams 395

Transportable Teamwork Competencies 395

Cross-Training 396

Team Process Training 396

Team Building 397

TAKEAWAYS 398

KEY TERMS 398

DISCUSSION QUESTIONS 399

CASE 399

EXERCISE 400

ENDNOTES 402

xx TA B L E O F C O N T E N T S

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TA B L E O F C O N T E N T S

CHAPTER 13 410 Leadership: Power and Negotiation

Leadership: Power and Negotiation 412

Why Are Some Leaders More Powerful Than Others? 412

Acquiring Power 412

Using Influence 416

Power and Influence in Action 420

Negotiations 426

Summary: Why Are Some Leaders More Powerful

Than Others? 429

How Important Are Power and Influence? 429

Application: Alternative Dispute Resolution 431

TAKEAWAYS 432

KEY TERMS 433

DISCUSSION QUESTIONS 433

CASE 434

EXERCISE 434

ENDNOTES 435

CHAPTER 14 442 Leadership: Styles and Behaviors

Leadership: Styles and Behaviors 444

Why Are Some Leaders More Effective Than Others? 446

Leader Decision-Making Styles 447

Day-to-Day Leadership Behaviors 452

Transformational Leadership Behaviors 456

Summary: Why Are Some Leaders More Effective

Than Others? 461

How Important Is Leadership? 464

Application: Leadership Training 466

TAKEAWAYS 467

KEY TERMS 467

DISCUSSION QUESTIONS 468

CASE 468

EXERCISE 469

ENDNOTES 470

PART 5 ORGANIZATIONAL MECHANISMS 479 CHAPTER 15 480 Organizational Structure

Organizational Structure 482

Why Do Some Organizations Have Different Structures

Than Others? 482

Elements of Organizational Structure 483

Organizational Design 489

Common Organizational Forms 491

Summary: Why Do Some Organizations Have Different

Structures Than Others? 497

How Important Is Structure? 498

Application: Restructuring 500

TAKEAWAYS 501

KEY TERMS 501

DISCUSSION QUESTIONS 502

CASE 502

EXERCISE 503

ENDNOTES 504

CHAPTER 16 508 Organizational Culture

Organizational Culture 510

Why Do Some Organizations Have Different Cultures

Than Others? 510

Culture Components 510

General Culture Types 514

Specific Culture Types 514

Culture Strength 517

Maintaining An Organizational Culture 520

Changing An Organizational Culture 523

Summary: Why Do Some Organizations Have Different

Cultures Than Others? 526

How Important Is Organizational Culture? 527

Application: Managing Socialization 529

TAKEAWAYS 531

KEY TERMS 532

DISCUSSION QUESTIONS 532

CASE 532

EXERCISE 533

ENDNOTES 534

INTEGRATIVE CASES 540

GLOSSARY/SUBJECT INDEX 549

NAME INDEX 568

COMPANY INDEX 583

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ORGANIZATIONAL BEHAVIOR Improving Performance and Commitment in the Workplace

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1

CHAPTER 1 What Is Organizational Behavior?

CHAPTER 2 Job Performance

CHAPTER 3 Organizational Commitment

P A R T

INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

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1

LEARNING GOALS

1.1 What is the definition of “organizational behavior” (OB)? 1.2 What are the two primary outcomes in studies of OB? 1.3 What factors affect the two primary OB outcomes? 1.4 Why might firms that are good at OB tend to be more profitable? 1.5 What is the role of theory in the scientific method? 1.6 How are correlations interpreted?

After reading this chapter, you should be able to answer the following questions:

What Is Organizational Behavior?

Leadership: Styles &

Behaviors

Leadership: Power &

Negotiation

Teams: Processes &

Communication

Teams: Characteristics &

Diversity

Organizational Structure

Organizational Culture

Stress

Motivation

Trust, Justice, & Ethics

Organizational Commitment

Job Performance

Job Satisfaction

Learning & Decision Making

Ability

Personality & Cultural Values

INDIVIDUAL CHARACTERISTICS

INDIVIDUAL CHARACTERISTICS

GROUP MECHANISMS

GROUP MECHANISMS

ORGANIZATIONAL MECHANISMS

ORGANIZATIONAL MECHANISMS

INDIVIDUAL OUTCOMES INDIVIDUAL OUTCOMES

INDIVIDUAL MECHANISMS

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IKEA

Does the name Ingvar Kamprad ring a bell? What if I told you he grew up on a farm called Elmtaryd near the village of Agunnaryd? That’s right—he’s the founder of Sweden-based IKEA (and now you know what the letters stand for). IKEA operates 389 stores worldwide, employing 183,000 employees. Kamprad built his massive company from the humblest of beginnings. At the age of five, he began buying boxes of matches in order to sell them by the book for profit. He founded IKEA in 1943 at the age of seventeen, using seed money from his father. Kamprad began by selling knickknacks and trinkets before moving on to furniture five years later. IKEA expanded beyond Swe- den in 1963 and opened its first U.S. store in Philadelphia in 1985.

Kamprad has been described as having the classic entre- preneur’s personality—highly conscientiousness, highly cre- ative, but very willing to disagree with the opinions and views of others. Those traits helped him make a number of inno- vations, including shipping furniture using “flatpacking”— where the buyer assembles the finished product. Today, Kamprad’s company tries to instill specific traits in its employees and its organizational culture. New hires are

given the “Little IKEA Dictionary” that describes the impor- tance of humility, heritage, simplicity, equality, togetherness, and sustainability.

How do such values shape the experience of working at IKEA? In terms of equality, Lars Petersson, the leader of IKEA’s Conshohocken, Pennsylvania-based U.S. headquar- ters, notes that “Hierarchy is not a big Swedish thing . . . We actually work with trust rather than control.” The com- pany has also successfully combatted the glass ceiling, with more than half of senior managerial roles filled by women. In terms of sustainability, Nabeela Ixtabalan, the head of human resources, notes “My boss would say, ‘Go home, you’ve been here too long,’ . . . Here, if you can’t do your job successfully in a reasonable amount of time, you’re doing something wrong.” IKEA’s pay philosophy is also sensitive to the long term. Hourly wages average $15.45—double the minimum wage—and are indexed to MIT’s Living Wage Calculator. And part-time employees qualify for health benefits if they work 20 hours per week. These and other aspects of life at IKEA explain why it was recently named one of Fortune’s 100 Best Companies to Work For.

©Kumar Sriskandan/Alamy

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WHAT IS ORGANIZATIONAL BEHAVIOR?

Before we describe what the field of organizational behavior studies, take a moment to ponder this question: Who was the single worst coworker you’ve ever had? Picture fellow students who col- laborated with you on class projects; colleagues from part-time or summer jobs; or peers, subordi- nates, or supervisors working in your current organization. What did this coworker do that earned him or her “worst coworker” status? Was it some of the behaviors shown in the right column of Table 1-1 (or perhaps all of them)? Now take a moment to consider the single best coworker you’ve ever had. Again, what did this coworker do to earn “best coworker” status—some or most of the behaviors shown in the left column of Table 1-1?

If you found yourself working alongside the two people profiled in the table, two questions would be foremost on your mind: “Why does the worst coworker act that way?” and “Why does the best coworker act that way?” Once you understand why the two coworkers act so differently, you might be able to figure out ways to interact with the worst coworker more effectively (thereby making your working life a bit more pleasant). If you happen to be a manager, you might formu- late plans for how to improve attitudes and behaviors in the unit. Such plans could include how to screen applicants, train and socialize new organizational members, manage evaluations and rewards for performance, and deal with conflicts that arise between and among employees. With- out understanding why employees act the way they do, it’s extremely hard to find a way to change their attitudes and behaviors at work.

ORGANIZATIONAL BEHAVIOR DEFINED Organizational behavior (OB) is a field of study devoted to understanding, explaining, and ulti- mately improving the attitudes and behaviors of individuals and groups in organizations. Scholars

1.1 What is the definition of “organizational behavior” (OB)?

TABLE 1-1 The Best of Coworkers, the Worst of Coworkers

THE BEST THE WORST

Have you ever had a coworker who usually acted this way?

Have you ever had a coworker who usually acted this way?

Got the job done, without having to be man- aged or reminded

Did not got the job done, even with a great deal of hand-holding

Adapted when something needed to be changed or done differently

Was resistant to any and every form of change, even when changes were beneficial

Was always a “good sport,” even when bad things happened at work

Whined and complained, no matter what was happening

Attended optional meetings or functions to support colleagues

Optional meetings? Was too lazy to make it to some required meetings and functions!

Helped new coworkers or people who seemed to need a hand

Made fun of new coworkers or people who seemed to need a hand

Felt an attachment and obligation to the employer for the long haul

Seemed to always be looking for something else, even if it wasn’t better

Was first to arrive, last to leave Was first to leave for lunch, last to return

The Million-Dollar Question: Why do these two employees act so differently?

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in management departments of universities and scientists in business organizations conduct research on OB. The findings from those research studies are then applied by managers or con- sultants to see whether they help meet “real-world” challenges. OB can be contrasted with two other courses commonly offered in management departments: human resource management and strategic management. Human resource management takes the theories and principles studied in OB and explores the “nuts-and-bolts” applications of those principles in organizations. An OB study might explore the relationship between learning and job performance, whereas a human resource management study might examine the best ways to structure training programs to pro- mote employee learning. Strategic management focuses on the product choices and industry char- acteristics that affect an organization’s profitability. A strategic management study might examine the relationship between firm diversification (when a firm expands into a new product segment) and firm profitability.

The theories and concepts found in OB are actually drawn from a wide variety of disciplines. For example, research on job performance and individual characteristics draws primarily from studies in industrial and organizational psychology. Research on satisfaction, emotions, and team processes draws heavily from social psychology. Sociology research is vital to research on team characteristics and organizational structure, and anthropology research helps inform the study of organizational culture. Finally, models from economics are used to understand motivation, learning, and decision making. This diversity brings a unique quality to the study of OB, as most students will be able to find a particular topic that’s intrinsically interesting and thought provok- ing to them.

AN INTEGRATIVE MODEL OF OB Because of the diversity in its topics and disciplinary roots, it is common for students in an organi- zational behavior class to wonder, “How does all this stuff fit together?” How does what gets cov- ered in Chapter 3 relate to what gets covered in Chapter 13? To clarify such issues, this textbook is structured around an integrative model of OB, shown in Figure 1-1, that’s designed to provide a roadmap for the field of organizational behavior. The model shows how the topics in the next 15 chapters—represented by the 15 ovals in the model—all fit together. We should stress that there are other potential ways of combining the 15 topics, and Figure 1-1 likely oversimplifies the connec- tions among the topics. Still, we believe the model provides a helpful guide as you move through this course. Figure 1-1 includes five different kinds of topics.

INDIVIDUAL OUTCOMES The right-most portion of the model contains the two primary out- comes of interest to organizational behavior researchers (and employees and managers in orga- nizations): job performance and organizational commitment. Most employees have two primary goals for their working lives: to perform their jobs well and to remain a member of an organiza- tion that they respect. Likewise, most managers have two primary goals for their employees: to maximize their job performance and to ensure that they stay with the firm for a significant length of time. As described in Chapter 2, there are several specific behaviors that, when taken together, constitute good job performance. Similarly, as described in Chapter 3, there are a number of beliefs, attitudes, and emotions that cause an employee to remain committed to an employer.

This book starts by covering job performance and organizational commitment so that you can better understand the two primary organizational behavior goals. Our hope is that by using perfor- mance and commitment as starting points, we can highlight the practical importance of OB top- ics. After all, what could be more important than having employees who perform well and want to stay with the company? This structure also enables us to conclude the other chapters in the book with sections that describe the relationships between each chapter’s topic and performance and commitment. For example, the chapter on motivation concludes by describing the relation- ships between motivation and performance and motivation and commitment. In this way, you’ll learn which of the topics in the model are most useful for understanding your own attitudes and behaviors.

1.2 What are the two primary outcomes in studies of OB?

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INDIVIDUAL MECHANISMS Our integrative model also illustrates a number of individual mechanisms that directly affect job performance and organizational commitment. These include job satisfaction, which captures what employees feel when thinking about their jobs and doing their day-to-day work (Chapter 4). Another individual mechanism is stress, which reflects employees’ psychological responses to job demands that tax or exceed their capacities (Chapter 5). The model also includes motivation, which captures the energetic forces that drive employees’ work effort (Chapter 6). Trust, justice, and ethics reflect the degree to which employees feel that their company does business with fairness, honesty, and integrity (Chapter 7). The final individual mechanism

1.3 What factors affect the two primary OB outcomes?

FIGURE 1-1 Integrative Model of Organizational Behavior

Leadership: Styles &

Behaviors

Leadership: Power &

Negotiation

Teams: Processes &

Communication

Teams: Characteristics &

Diversity

Organizational Structure

Organizational Culture

Stress

Motivation

Trust, Justice, & Ethics

Organizational Commitment

Job Performance

Job Satisfaction

Learning & Decision Making

Ability

Personality & Cultural Values

INDIVIDUAL CHARACTERISTICS

INDIVIDUAL CHARACTERISTICS

GROUP MECHANISMS

GROUP MECHANISMS

ORGANIZATIONAL MECHANISMS

ORGANIZATIONAL MECHANISMS

INDIVIDUAL OUTCOMES INDIVIDUAL OUTCOMES

INDIVIDUAL MECHANISMS

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shown in the model is learning and decision making, which deals with how employees gain job knowledge and how they use that knowledge to make accurate judgments on the job (Chapter 8).

INDIVIDUAL CHARACTERISTICS Of course, if satisfaction, stress, motivation, and so forth are key drivers of job performance and organizational commitment, it becomes important to understand what factors improve those individual mechanisms. Two such factors reflect the char- acteristics of individual employees. Personality and cultural values reflect the various traits and tendencies that describe how people act, with commonly studied traits including extraversion, conscientiousness, and collectivism. As described in Chapter 9, personality and cultural values affect the way people behave at work, the kinds of tasks they’re interested in, and how they react to events that happen on the job. The model also examines ability, which describes the cognitive abilities (verbal, quantitative, etc.), emotional skills (other awareness, emotion regulation, etc.), and physical abilities (strength, endurance, etc.) that employees bring to a job. As described in Chapter 10, ability influences the kinds of tasks an employee is good at (and not so good at).

GROUP MECHANISMS Our integrative model also acknowledges that employees don’t work alone. Instead, they typically work in one or more work teams led by some formal (or sometimes informal) leader. Like the individual characteristics, these group mechanisms shape satisfac- tion, stress, motivation, trust, and learning. Chapter 11 covers team characteristics and diversity— describing how teams are formed, staffed, and composed, and how team members come to rely on one another as they do their work. Chapter 12 then covers team processes and communication—how teams behave, including their coordination, conflict, and cohesion. The next two chapters focus on the leaders of those teams. We first describe how individuals become leaders in the first place, covering leader power and negotiation to summarize how individuals attain authority over others (Chapter 13). We then describe how leaders behave in their leadership roles, as leader styles and behaviors capture the specific actions that leaders take to influence others at work (Chapter 14).

ORGANIZATIONAL MECHANISMS Finally, our integrative model acknowledges that the teams described in the prior section are grouped into larger organizations that themselves affect satisfaction, stress, motivation, and so forth. For example, every company has an organizational structure that dictates how the units within the firm link to (and communicate with) other units (Chapter 15). Sometimes structures are centralized around a decision-making authority, whereas other times, structures are decentralized, affording each unit some autonomy. Every company also has an organizational culture that captures “the way things are” in the organization—shared knowledge about the values and beliefs that shape employee attitudes and behaviors (Chapter 16).

SUMMARY Each of the chapters in this textbook will open with a depiction of this integrative model, with the subject of each chapter highlighted. We hope that this opening will serve as a roadmap for the course—showing you where you are, where you’ve been, and where you’re going. We also hope that the model will give you a feel for the “big picture” of OB—showing you how all the OB topics are connected.

DOES ORGANIZATIONAL BEHAVIOR MATTER?

Having described exactly what OB is, it’s time to discuss another fundamental question: Does it really matter? Is there any value in taking a class on this subject, other than fulfilling some require- ment of your program? (You might guess that we’re biased in our answers to these questions, given that we wrote a book on the subject!) Few would disagree that organizations need to know principles of accounting and finance to be successful; it would be impossible to conduct business without such knowledge. Similarly, few would disagree that organizations need to know principles of marketing, as consumers need to know about the firm’s products and what makes those prod- ucts unique or noteworthy.

However, people sometimes wonder whether a firm’s ability to manage OB has any bearing on its bottom-line profitability. After all, if a firm has a good-enough product, won’t people buy it

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regardless of how happy, motivated, or committed its workforce is? Perhaps for a time, but effec- tive OB can help keep a product good over the long term. This same argument can be made in reverse: If a firm has a bad-enough product, isn’t it true that people won’t buy it, regardless of how happy, motivated, or committed its workforce is? Again, perhaps for a time, but the effective man- agement of OB can help make a product get better, incrementally, over the long term.

Consider this pop quiz about the automotive industry: Which two automakers were rated tops in car technology by J.D. Power in 2016? BMW was one—can you guess the other? The answer is Hyundai (yes, Hyundai).1 The study focused on entertainment, connectivity, navigation, collision avoidance, driving assistance, and convenience. The South Korean automaker has come a long way since comedian Jay Leno likened a Hyundai to a bobsled (“It has no room, you have to push it to get going, and it only goes downhill!”).2 Today its Sonatas and Elantras are built in an very modern factory in Montgomery, Alabama. The factory employs 3000 workers and pays $17 per hour as an entry-level wage.3 Much of Hyundai’s turnaround can be credited to the company’s increased emphasis on quality. Work teams devoted to quality have been expanded eightfold, and almost all employees are enrolled in special training programs devoted to quality issues.4 Hyundai represents a case in which OB principles are being applied across cultures. Our OB Internationally feature spotlights such international and cross-cultural applications of OB topics in each chapter.

BUILDING A CONCEPTUAL ARGUMENT Of course, we shouldn’t just accept it on faith that OB matters, nor should we merely look for specific companies that appear to support the premise. What we need instead is a conceptual argument that captures why OB might affect the bottom-line profitability of an organization. One such argument is based on the resource-based view of organizations. This perspective describes what exactly makes resources valuable—that is, what makes them capable of creating long-term profits for the firm.5

Changes in technology, communications, and economic forces have made business more global and international than ever. To use Thomas Friedman’s line, “The world is flat.” The playing field has been leveled between the United States and the rest of the world. This feature spotlights the impact of globalization on the organizational behavior concepts described in this book and covers a variety of topics.

Cross-Cultural Differences. Research in cross-cultural organizational behavior has illustrated that national cultures affect many of the relationships in our integrative model. Put differently, there is little that we know about OB that is “universal” or “culture free.”

International Corporations. An increasing number of organizations are international in scope, with both foreign and domestic operations. Applying organizational behavior concepts in these firms represents a special challenge—should policies and practices be consistent across locations or tailored to meet the needs of the culture?

Expatriation. Working as an expatriate—an employee who lives outside his or her native country—can be particularly challenging. What factors influence expatriates’ job performance and organizational commitment levels?

Managing Diversity. More and more work groups are composed of members of different cultural backgrounds. What are the special challenges involved in leading and working in such groups?